Tax Compounding Is Not Working

(Doc ID 1663586.1)

Last updated on AUGUST 24, 2016

Applies to:

Oracle Receivables - Version 12.1.2 and later
Information in this document applies to any platform.

Symptoms

You have created two (2) taxes:
 1. Tax 1
 2. Tax 2

You created a Tax Formula for Tax 2 to Compound Tax 1.

When creating the transaction, tax are not compounded.

Line amount : 100
Tax 1 amount : 3   taxable amount : 100   rate 3%
Tax 2 amount : 1   taxable amount : 100  rate 1%


EXPECTED BEHAVIOR
-----------------------
Tax 1 amount : 3        taxable amount : 100   rate 3%
Tax 2 amount : 1.03   taxable amount : 103   rate 1%

Cause

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