Tax Calculation Issue: Incorrect Tax Amount is Created When Adjusting Transaction With Inclusive/Exclusive Tax Line (Doc ID 1611973.1)

Last updated on APRIL 04, 2017

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.

Symptoms

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 :

AmountTax Classification CodeGL 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.

ClassGL AccountAccounted DRAccounted CR
Receivable CCCC.CCCC 1,185  
Revenue AAAA.AAAA   100
Tax DDDD.DDDD   5
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 NameTypeAmount
TEST01 Invoice -1185

Create journals for adjustment and check these :

AccountAccounting ClassAccounted DRAccounted 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.

Cause

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