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PO matched invoice prepayment is getting applied successfully even if no TDS generated on Service Tax lines (Doc ID 2086465.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Financials for India - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

On : 12.1.3 version, Tax Deducted at Source-Payables

ACTUAL BEHAVIOR
---------------
For PO matched invoice prepayment is getting applied successfully even if no TDS generated on Service Tax lines

EXPECTED BEHAVIOR
-----------------------
Expects application should be allowed only to the extent of amount on which TDS is applied i.e. Item line

STEPS TO REPRODUCE
-------------------------------
1. Create Prepayment of Rs 10000 and apply TDS.
2. Create PO with Service Tax
3. Create a PO Matched invoice with line value as Rs 5000 and Service Tax defaulted from PO as Rs 600 i.e. 12%
4. Validate the invoice
5. Tried applying prepayment it was successful for Rs 5600

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, users cannot have correct RTN generated.

Cause

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