Find Non-Recoverable Tax on Consigned / Consumption (Mtl_Consumption_Transactions) When Related Purchase Order (PO) Has No Tax, Expect No Consigned Tax Too (Doc ID 2068392.1)

Last updated on OCTOBER 20, 2015

Applies to:

Oracle Inventory Management - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

Actual Behavior
The non-recoverable tax shows on consumption transactions (Mtl_Consumption_Transactions) for Transfer to Regular transactions but not on the Purchase Order (PO) based on PO details.
The Purchase Order (PO) has no tax.

The issue could be seen reviewing the consumption data with SQL like this:

NON_RECOVERABLE_TAX
89.1
89.1
89.1
123.75
123.75
123.75
89.1
89.1
89.1
89.1
...

TAX_CODE_ID: -1
TAX_RATE: 2
TAX_RECOVERY_RATE: 100



Expected Behavior
Expect no tax on inventory tables because the purchase order (PO) has no tax.

Steps
1. Create a purchase order without tax.
2. Create a blanket purchase order and approved supplier list.
3. Receive material consigned.
4. Consume the material causing transfer to regular.
5. Review transactions.
6. See tax calculated.

Business Impact

Cause

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