Tax User Defined Fiscal Classifications do not Work for Termination Invoices
(Doc ID 2443823.1)
Last updated on MARCH 02, 2019
Applies to:Oracle Lease and Finance Management - Version 12.1.3 and later
Information in this document applies to any platform.
On : 12.1.3 version, Asset Management
When defining Tax User Defined Fiscal Classifications using the Termination Quote Type and Termination Quote Reason, the Termination Invoice billing transaction generated by the OKL - AM : Termination Quote Acceptance does not honor the Fiscal Classification. Instead the standard tax rules are applied to the transaction.
This means we are unable to differentiate the tax classification based on Termination Quote Reason, which is a requirement where we are terminating for a specific reason which has regulatory impacts on the tax amount we can apply.
As these fields are available in the setup, the expectation is that the Termination Quote Reason will be used as a determinant by the transaction. Testing has shown that the reason works correctly for the Estimated Tax call on the Termination Quote, but does not get used by the subsequent Billing transaction.
The issue can be reproduced at will with the following steps:
1. Define a Tax User Defined Fiscal Classification in OLFM > Setup > Transaction Tax > Tax User Defined Fiscal Classifications
2. Use the Stream Type QUOTE UNBILLED RECEIVABLES, the Termination Quote Type 'Termination - Without Purchase' and the Termination Quote Reason 'Termination Quote - Prime' (these are all seeded values)
3. For the Fiscal Classification, set to a eBTax VAT classification that will return zero VAT.
4. Create a Termination Quote against a contract using the Quote Type and Reason above.
5. Review the quote values, the Transaction Tax for the QUOTE UNBILLED RECEIVABLES should be zero.
6. Accept the quote
7. Run Billing - the subsequent Billing transaction for the quote will NOT have zero VAT.
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