Wrong TDS Calculation for cases where exists multiple prepayment application / unapplication

(Doc ID 2124250.1)

Last updated on APRIL 06, 2016

Applies to:

Oracle Financials for India - Version 12.2.5 and later
Information in this document applies to any platform.


On : 12.2.5 version, Tax Deducted at Source-Payables

Issue Clarification

Observed that post application of patch 22752979:R12.JAI.C. ,
the TDS calculation is incorrect for the transactions where it has
multiple prepayment application / unapplication events.

Expected Behaviour
The TDS deduction should be correct irrespective of the prepayment
application / unapplication events .
Example of incorrect tax calculation:-
1. Prepayment is raised for example of Rs 12000 where TDS 2% is attached.
2. On validation , generated TDS invoice is for amount 240.
3. Raise a standard invoice for Rs. 15000 where 2% TDS tax is attached.
4. Now ,Apply / unapply / reapply the prepayment and the validate the invoice.
5. Ideally should be be generated as (15,000 - 12,000)  * 2/100 = 60
   but it is getting generated as 0.

The issue can be reproduced at will with the following steps:
1. Create prepayment ,attach TDS validate pay. Check the generated TDS invoice amount.
2. Create standard invoice and attach TDS Tax.
3. Apply/Unapply/Reapply and then validate.
4. TDS deduction amount is zero.

The issue has the following business impact
where cannot reapply the prepayment on the standard invoice which results in
incorrect tax calculation and impacts their TDS submission.


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