Invoice API Does Not Decrease Line Amount of Inclusive Tax for On-Account Credit Memo

Last updated on JANUARY 28, 2018

Applies to:

Symptoms

AR_INVOICE_API_PUB.CREATE_SINGLE_INVOICE API is used to create On-Account Credit Memo and pass AMOUNT_INCLUDES_TAX_FLAG := 'Y' at line level.
API is not able to create Line amount as inclusive tax, it is created as exclusive tax.
Line amount is not decreasing.

Example:
* In case of Tax Rate is 8% and Inclusive Tax

1. Set parameters for API as for Line Amount -1080 with inclusive tax
- QUANTITY_INVOICED = -1
- UNIT_SELLING_PRICE = 1080
- TAX_RATE = 8
- AMOUNT_INCLUDES_TAX_FLAG = 'Y' <-----Inclusive Tax

2. API has created On-Account Credit Memo with Incorrect Amounts.
- Line Amount: -1080    <--------- Tax Amount has not been decreased.
- Tax Amount : -80      <--------- Tax Amount has been calculated as Inclusive Tax
- Total balance : -1160

NOTE: these should be below:
- Line Amount: -1000    <--------- Tax Amount should be decreased.
- Tax Amount : -80      <--------- Tax Amount has been calculated as Inclusive Tax
- Total balance : -1080 <--------- Total balance should be same as the amount passed to API.

Changes

Cause