Withholding Tax Rounding Down is not Working Correctly when Currency Precision is zero (Doc ID 2023871.1)

Last updated on JUNE 24, 2015

Applies to:

Oracle Payables - Version 12.1.1 and later
Information in this document applies to any platform.

Symptoms

In Korean Withholding Tax rounding down is not working correctly if currency precision is 0.
  
Customer currency is 'KRW' and the currency precision is 0. 
In this case, the withholding tax rounding down is not working correctly. The system always rounding up the tax amount even if they set the tax
rounding options as rounding down.
  
  1. Withholding Tax Rate = 0.004
  2. Invoice Amount = 302400
  3. Withholding  Apply = At Payment
  4. Tax Rounding option = Rounding down at system options and customer  sites level.
  >> It calculates withholding tax amount as '1210'.
  But if change currency precision to 2, it calculates '1200'.
  
In this case, the withholding amount should be rounded down to the nearest ten. (It's standard logic for Korean AWT Calculation)
  
So if system calculates the tax base amount as 1209 (302400*0.004 = 1209.6), the withholding amount will be calculated as 1200 according to Korean AWT Calculation.
  
But the system handles the tax base amount as 1210, not 1209 when precision is 0.

Cause

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