Credit Memo with No Tax Applied to an Invoice with Tax, and then is Unapplied, Results in Incorrect Credit Memo Payment Schedule (Doc ID 1922468.1)

Last updated on AUGUST 24, 2016

Applies to:

Oracle E-Business Tax - Version 12.1.2 and later
Oracle Receivables - Version 12.1.2 and later
Information in this document applies to any platform.
12.2.2

Symptoms

When a Credit Memo (CM), with no tax, is applied to an invoice with tax, the CM Application is calculated proportionally over line and tax of the invoice.
This is OK.

When the application is undone, the CM payment schedule displays AMOUNT_LINE_ITEMS_REMAINING and TAX_REMAINING for the amounts of the application done before, which is wrong.

Example:
- CM payment schedule before having been applied:

amount_due_original / amount_due_remaining -46500
acctd_amount_due_remaining -46500
amount_line_items_original -46500
amount_line_items_remaining -46500
tax_original 0
tax_remaining 0

- CM after the application to the Invoice has been undone:

amount_due_original / amount_due_remaining -46500
acctd_amount_due_remaining -46500
amount_line_items_original -46500
amount_line_items_remaining -39743.57
tax_original 0
tax_remaining -6756.43

You unapply an Invoice with Tax line from a No-Tax On-Account Credit memo and find the credit memo ends up with tax amount.
The payment schedules gets corrupted.
The credit memos should not have a TAX balance if the credit memo itself never had tax and has no tax distributions.

This results in error when attempt to adjust credit memo balance to zero:

APP-AR-11526: arp_process_adjustment.insert_adjustment exception: ORA-20001:
A cash application is being made against a transaction with zero line amount basis, please contact Oracle Support.

The activity GL account does not meet your requirements - it has to be the revenue on the credit memo since it has 0 tax distributions, this should not be a problem.

FND Debug:
Exception when calling AR_ADJUST_PUB:
ar.plsql.ARP_ALLOCATION_PKG.Summarize_Accounting_Lines.begin 2 ARP_ALLOCATION_PKG.Summarize_Accounting_Lines()+
ar.plsql.ARP_ALLOCATION_PKG.Summarize_Accounting_Lines 1 EXCEPTION: ARP_ALLOCATION_PKG.Summarize_Accounting_Lines:ORA-01400: cannot insert NULL into ("AR"."AR_DISTRIBUTIONS_ALL"."CODE_COMBINATION_ID")
ar.plsql.ar_process_adjustment.insert_adjustment 4 EXCEPTION: ar_process_adjustment.insert_adjustment()

Cause

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