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Upfront Tax is Billed While Terms Indicate it Should be Financed or Capitalized (Doc ID 2610893.1)

Last updated on JULY 14, 2020

Applies to:

Oracle Lease and Finance Management - Version 12.1.3 and later
Information in this document applies to any platform.


Upfront Tax is defined in the Terms and Conditions to be Financed.
However, once Upfront Tax is calculated it is being Billed and there is no option to enter the Financing details in any Financed Fee / Payment.

Expect that a Financed Fee would be added to the contract for the Upfront Tax and the user would be able to enter the Payment details for that Fee while activating the contract.

The issue can be reproduced at will with the following steps:
1. Setup Tax to use Assessable Value as the Taxable Basis.
2. Define a custom Formula in Lease Management that will return a
  zero for any line amounts and a non-zero value for header amounts.
3. In Lease Management navigate to Setup > Transaction Tax > Tax Basis Override.
4. Update the Transaction Type Booking to use the Formula created in step 2.
5. Create a contract with the Taxes and Duties Terms defined to Finance Upfront Tax.
6. Validate and then calculate Upfront Tax. Tax should only be calculated at the header
  level and the amount will be indicated in the Total Upfront Tax Billed field. There
  will be no option available to Finance this amount.

The issue has the following business impact:
Due to this issue, users cannot finance the tax as required.




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