R12: AP: Rounding Rule for Tax Does Not Work When Prepayment is Applied

(Doc ID 2415372.1)

Last updated on JULY 02, 2018

Applies to:

Oracle Payables - Version 12.0.0 and later
Information in this document applies to any platform.

Symptoms

When a prepayment is applied to a standard invoice, the rounding rule for the tax does not work.

Example)

  Rounding Rule is set to "UP" at the supplier site.

  Prepayment Invoice is imported with Tax Rate 8% and CONTROL_AMOUNT 94 JPY

Item:   1166 JPY
Tax: 94 JPY
Total: 1260 JPY

  Standard Invoice is imported with Tax Rate 8% and CONTROL_AMOUNT 32 JPY

Item:    388 JPY
Tax: 32 JPY
Total: 420 JPY

  When the prepayment invoice is applied to the standard invoice, the applied prepayment tax is expected as below:

       Applied Prepayment Tax = 388 * 8% = 31.04. Hence 32 is expected because Rounding Rule is set to "UP".

  But the actual tax is calculated as 31.

  As result, the following lines for the standard are generated:

Line Num      Type Amount
1 Item 388
2 Tax 32
3 Prepayment  -388
4 Tax -31

  General tab in Invoice Workbench window shows the Summary for the standard invoice as below:

Item: 388
Prepayment Applied:   
  388
Subtotal: 0
Tax: 1
Total: 1


Why does system ignore the rounding rule when calculating the applied tax to the standard invoice? And how to match the applied prepayment tax to the standard invoice tax?

Cause

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