Unexpected Upfront Tax for Rebooks When Assessable Value Is Based On Original Equipment Cost
(Doc ID 2631078.1)
Last updated on JULY 14, 2020
Applies to:Oracle Lease and Finance Management - Version 12.2.8 and later
Information in this document applies to any platform.
The setting Rebook Upfront Tax Calculation is set to Based on Increase or Decrease.
Using the Enhancements documented in Note 2416680.1, Upfront Tax has been configured to use the Original Equipment Cost (OEC) as the Taxable Basis. This is working when booking a contract, however, when rebooking the Tax is being re-calculated and the full Tax is being billed again.
Expect that if no changes are made to the Taxable Basis, in this case OEC, then no Tax would be calculated or billed.
The issue can be reproduced at will with the following steps:
1. Create a custom Formula and PL/SQL function to be used by that Formula
to derive the OEC Amount to be used as the Taxable Basis.
2. Use the new Formula in the Tax Basis Override setup in Lease Management
for the Booking Transaction Type.
3. Configure EB Tax to use the Assessable Value as the Taxable Basis (Note 1570683.1).
4. Book a contract and confirm the expected Tax is calculated and billed (or Financed / Capitalized
depending on that setup in the contract).
5. Rebook the contract and the Tax will be re-calculated and re-billed.
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