Last updated on OCTOBER 05, 2015
Applies to:Oracle Lease and Finance Management - Version 12.1.3 and later
Information in this document applies to any platform.
On : 12.1.3 version, Lease Authoring
Find that in a Transfer and Assumption Termination quote, the tax amount on Estimated Billing Adjustment Line is different from the tax amount on the original invoice.
In a Transfer and Assumption scenario, An active contract(Original) gets terminated and transferred to a new contract(New). On completing a Transfer, Original contract gets termination through a separate termination quote type - Automatic Release without Purchase.
They have pre-billed invoice on Original contract at the time of transfer. i.e, a future RENT bill is generated and open in AR. Termination quote included Estimated billed Adjustment line, so that a credit memo can be created to close Pre-bill invoice. The credit memo generated through Termination quote has different tax amount when compared to Original Pre-bill invoice. This causes the reconciliation issues.
This happens If the customer has different bill to & ship to(install at) addresses, in the the above scenario, tax amounts are different on T&A close out termination quote when compared to regular billing done on that old lease(including Pre-bill invoice).
Expect the tax amount on the credit memo to be the same as the tax on the original invoice.
The issue can be reproduced at will with the following steps:
1. On the original contract, pick a customer that has bill to & install at location in different taxable states.
2. Have print lead days of 21.
3. Bookthe contract
4. Bill the contract
5. Go to Lease center and create a complete T&A request with new Lessee and new contract number
6. Submit the request and approve all notifications
7. Query the original contract and revise
8. Choose the request number
9. New contract is created with new customer info
10. Book the new contract
11. A quote is created with quote type - Automatic Release without Purchase.
12. Make sure the quote is completed
13. Run billing to create the credit memo for Estimated Billing Adjustment
14. Compare the tax amount on the credit memos are different than the tax on the original rent invoice.
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