Credit Exposure Report Incorrectly Calculating Tax On Freight
Last updated on SEPTEMBER 04, 2017
Applies to:Oracle Order Management - Version 12.2.5 and later
Information in this document applies to any platform.
On : 12.2.5 version, Reporting & Business Analysis
Credit Exposure Report Incorrectly Calculating Tax on Freight
A Sales Order is created that is discounted at line level and has a freight charge applied at order level.
The Sales Order Line and Freight Charge both have tax applied and this is calculated correctly in the sales order at the respective level.
After shipment and invoicing, the invoice transaction is receipted against and the balance cleared. This means that the customer should have a zero Credit Exposure.
But when running the Credit Exposure Report there was a value listed as a balance, and this was linked to the value of the tax on the freight.
During Sales Order processing and after shipment, i.e. in Invoice Interface, the Credit Exposure report calculates the exposure correctly, however, as soon as Autoinvoice is run, the exposure is now increased by the value of the tax on freight.
It appears that there could be a bug in the code that increases the credit exposure.
Credit Exposure report should calculate the exposure correctly
The issue can be reproduced at will with the following steps:
1. run the credit exposure report pre-invoice verify the exposure amount
2. run the credit exposure report after invoice import, verify the exposure amount
3. Observe the differenc ein the exposure amount, the difference is equivalent to the tax on Freight of the Sales order which was invoiced to AR.
The issue has the following business impact:
Due to this issue, users cannot see the correct exposure.
The Invoice is cleared by the receipt, there is nothing than can done to clear the "phantom" exposure, as it is not feasible to ask customers for additional monies, and the value cannot be purged.
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