Service Tax Settlement Amount Is Showing Incorrect Figures (Doc ID 2116825.1)

Last updated on MARCH 15, 2016

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, Service Tax - P2P

ACTUAL BEHAVIOR
---------------
In the Service Tax Repository screen, the Tax Amount (INR) is showing non-currency value.

EXPECTED BEHAVIOR
-----------------------
In the Service Tax Repository screen, the Tax Amount (INR) should show currency value.

STEPS
-----------------------
The issue can be reproduced at will with the following steps:

1. Responsibility: Oracle Payables - India localization
2. Path: Invoices -> Entry -> Invoices
3. Create an invoice with USD currency with Invoice Date as 01-OCT-2015 and GL Date as 03-MAR-2016.
4. Apply service Tax with reverse charge which includes basic Service Tax and Swachh Bharat Cess tax (SBC).
5. Validate the invoice and Create Accounting.

6. Path: Other -> Requests -> Run
7. Run the India - Service Tax Processing (JAISRVTP) with date range from 01-OCT-15 till 03-Mar-2016

8. Path: Service tax Repository
9. Check Service tax Repository

 Tax amount (INR) is showing NON-INR value.

India - Service Tax Processing is populating incorrect values in JAI_RGM_TRX_RECORDS table.

a) The Transaction Date should be derived from GL_DATE instead of Invoice_Date.
This issue has been reported in SR 3-12289028851.

b) The currency exchange rate is being used to divide instead of multiplying to convert USD into INR.

10. For example (LOCAPLIST_1284338.html)

JAI_RGM_TRX_RECORDS

Tax type - Service

Trx_Debit_Amount --> 9.93
Curr_Conv_Rate --> 65.1223
Debit_Amount --> 9.93 / 65.1223 = .15 (Actual), 9.93 * 65.1223 = 646 (Expected)

Tax type - SWACHH_BHARAT_CESS

Trx_Debit_Amount --> 9.93
Curr_Conv_Rate --> 65.1223
Debit_Amount --> .35 / 65.0328 = .01 (Actual), 9.93 * 65.1223 = 22.76 (Expected)

BUSINESS IMPACT
-----------------------
The issue has the following business impact:

Unable to do settlement and make payment to authorities by tomorrow.

Cause

Sign In with your My Oracle Support account

Don't have a My Oracle Support account? Click to get started

My Oracle Support provides customers with access to over a
Million Knowledge Articles and hundreds of Community platforms