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Taxes are Calculated as Standard Inclusive When Inclusive and Non-Inclusive Tax When Two Tax Lines are Expected (Doc ID 1913850.1)

Last updated on DECEMBER 03, 2019

Applies to:

Oracle Receivables - Version 12.2.3 and later
Information in this document applies to any platform.


How does the system calculate taxes when you have one line and two taxes applicable; one set as Standard Inclusive and the other one set as Standard Non-Inclusive?

Multiple taxes are created for a Transaction.
One tax is set as inclusive and one as non-inclusive.
Now if all taxes are going to be calculated, they are calculated as inclusive - it is wrong.
On the Transaction, the two taxes are calculated as Inclusive and only one is set as inclusive and one non-inclusive.

Steps to Reproduce:
1. Define a tax rate GB VAT10 (10%) as Standard Non-Inclusive Handling in Tax Regime Code GB VAT
2. Define a tax rate GB VAT11 (20%) as Standard Inclusive Handling Tax Regime Code GB VAT
3. Create a transaction and both taxes are considered as inclusive, even one is set as non-inclusive and the other one as non-inclusive
For one item 1*1000=1000
Line 1: (ra_customer_trx_line) Tax amount for GB VAT11 = 90.91 - correct
Line 2: (ra_customer_trx_line) Tax amount for GB VAT10 = 181.82 >> incorrect  > the calculation should be 200




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