Rebook Of Contract Creates Negative Credit Memo For Upfront Tax (Doc ID 2299372.1)

Last updated on AUGUST 23, 2017

Applies to:

Oracle Lease and Finance Management - Version 12.2.5 and later
Information in this document applies to any platform.

Symptoms



ACTUAL BEHAVIOR
---------------
Rebook of Contract creates Negative Credit Memo for Upfront Tax.

When the Contract with Upfront tax is rebooked, it is supposed to create 2 new Upfront Tax Invoices: One invoice for a negative amount to reverse the original Upfront tax amount and another invoice with a positive amount for the new value of Upfront tax.

But in a couple of contracts, the rebook process has created 2 new Upfront Tax CREDIT MEMOS: One CREDIT MEMO for a negative amount to reverse the original Upfront tax amount and another CREDIT MEMO with a POSITIVE amount for the new value of Upfront tax. The Credit memo with a positive amount is now getting stuck in the AR Interface table with the error.

The core issue is - the rebook process should NOT be creating credit memo's for Upfront tax. They should be created as Invoices

EXPECTED BEHAVIOR
-----------------------
The rebook process should NOT be creating credit memo's for Upfront tax. They should be created as Invoices

STEPS
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The issue can be reproduced at will with the following steps:
1. Setup an OU in OLFM - and complete all the required Setups
2. In the Accounting Options' page, select the accounting option as 'Accounting Methods Builder'
3. In the 'Transactions Tax Setup' page, choose 'Yes' for Upfront Tax and complete the other related setups
4. Create a DF Lease contract with a start date of 17-May-17 and term of 48 months
5. In the T&C, enable Upfront Tax for billing
6. Create an Asset for a Cost of 100,000
7. Associate an Income Fee of 100. Payment in 'Advance' and 'Monthly'. one payment of 100
8. Create a Payment line for the Asset. Monthly in 'Advance'. 48 payments of 2165.48. The total rental amount will be equal to 103943.04.
9. Validate, Price and Book contract
10. Process Billing till 21-Jun-17
11. This will create an 'Upfront Tax' invoice on the customer dated 17-May-17- and also Invoices for Fees and RENT
12. Now Rebook the contract (Revision type: Rebook Contract', Reason: Adjust Rent and Revision Date: 21-Jun-17
13. In the payment tab, change the RENT payment structure to Monthly in 'Advance'. 48 payments of 2160.00. The total rental amount will be equal to 103680.00.
14. This will basically result in the total customer payments being reduced by about 263.04
15. Complete the rebook process
16. Process billing again as on 21-Jun-17
17. The rebook process has now created 2 CREDIT MEMOS:
  a) A negative CREDIT MEMO to reverse the original upfront tax billing
  b) A positive CREDIT MEMO for the new Upfront tax amount


Changes

 

Cause

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