Tax Calculation Issue: Incorrect Tax Amount is Created When Adjusting Transaction With Inclusive/Exclusive Tax Line

(Doc ID 1611973.1)

Last updated on FEBRUARY 09, 2018

Applies to:

Oracle Receivables - Version 12.1.3 and later
Oracle E-Business Tax - Version 12.1.3 and later
Information in this document applies to any platform.


On : 12.1.3 version, Transactions Related

Incorrect tax amount was created when adjusting the transaction that has inclusive tax line and exclusive tax line.

Steps to Reproduce:
Responsibility: Receivables
Navigation: Transactions > Transactions
Create Transaction as follows :

Amount Tax Classification Code GL Account on Distribution  
100 RATE-A AAAA.AAAA  * Exclusive Tax 5%
1080 RATE-B BBBB.BBBB  * Inclusive Tax 8%

Create Journals for this transaction and check the journals.

Class GL Account Accounted DR Accounted CR
Receivable CCCC.CCCC 1,185  
Revenue AAAA.AAAA   100
Revenue BBBB.BBBB   1,000
Tax DDDD.DDDD   80

Create following Receivable Activities :
 Name  : TEST01
 Type   : Adjustment
 Active : On

 GL Account Source    : Revenue on Invoice
 Tax Rate Code Source : Invoice
 Recoverable          : On

 Activity GL Account :
 Distribution Set    :

Adjust Transaction as follows :

Activity Name Type Amount
TEST01 Invoice -1185

Create journals for adjustment and check these :

Account Accounting Class Accounted DR Accounted CR
AAAA.AAAA Adjustment 989  
BBBB.BBBB Adjustment 111  
CCCC.CCCC Receivable   1185
DDDD.DDDD Tax 85  

  * Accounted DR of Account:AAAA.AAAA and Account:BBBB.BBBB is incorrect (highlighted in bold above).
     Should be 1000 at Account:AAAA.AAAA line and should be 100 at Account:BBBB.BBBB line.




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