Brazilian Resolution 13 - Tax rules inconsistencies - base rate of null or zero is not allowed
Last updated on JULY 31, 2017
Applies to:Oracle Financials for the Americas - Version 22.214.171.124 and later
Information in this document applies to any platform.
On : 126.96.36.199 version, Oracle Applications Tax Module
Brazilian Resolution 13 - Tax Rules Inconsistencies - Tax Issue
Brazilian Resolution 13 - Tax Rules Inconsistencies (Exception by Fiscal Classification Code x Exception by Item Origin) when apply in the rule level:
You have different fiscal ICMS scenarios to the same Transaction Type.
To one scenario, the Tax Rates are calculating Exception by Item Origin (TAX RULE LEVEL 1).
To other scenario, the Tax Rates are calculating Exception by Fiscal Classification Code (TAX RULE LEVEL 2).
Finally, if these last two scenarios will not apply the tax rules, the system uses Ship From/Ship To Site Tax Code (TAX RULE LEVEL 3).
When the Tax Rule works, with priority levels, the Tax Rule with same Tax Category, same Transaction Type and same Contributor Value found a setup in the first level can ignore other levels.
The problem occurs when the Inventory Item has an Exception by Item Origin and at the same time this Inventory Item has a fiscal classification used in exception by Fiscal Classification Code with tax base reduction.
That is occurring: The Exception by Item Origin is conflicting the Tax Rate and stopping the transactions issuing with error.
Find bellow the error:
It’s wrong, because there are two different scenarios to the same Transaction Type and the same Latin Tax Group.
When you use other rules, for example: Latin Tax Group Tax Code or Ship From / Ship to Site Tax Code the taxes are calculating correctly skipping the other rule priority levels.
Would be correct calculate the tax from the rule level priority 1 (Ship From/To Site Exception by Item Origin Tax Code) and skip other priorities.
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