Taxable Amount in Case of Compounding Tax with Line Amount of Zero Does Not Calculate Correctly (Doc ID 1921773.1)

Last updated on OCTOBER 02, 2016

Applies to:

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

Symptoms

Taxable bases formula set to use 'Line Amount' does not produce the correct tax when the Line Amount is Zero (Unit Price is Zero) and the first Tax is a Quantity Base Tax.
The tax is calculated on quantity value.

Note:
The formula, based on 'Prior Tax' code, is working correctly.

Steps to Reproduce:
1. Create two (2) taxes
    a. One with tax rate based on quantity
    b. One tax with tax rate based on a percentage

2. For the 2nd tax, setup a compound formula of taxable basis 'Line Amount' and add the 1st tax for the compounding rule.

The above works correct, when the line amount is > then zero, both the line amount and tax calculated from the 1st tax is added to the taxable amount of the 2nd tax.
Issue is when the line amount is zero and the tax value is > zero (due to quantity base tax rate) then no value from the 1st tax is added to the 2nd taxable amount.

Cause

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