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Receipt application generated incorrect accounting entries in case of split payment (Doc ID 2846362.1)

Last updated on FEBRUARY 07, 2022

Applies to:

Oracle Financials for India - Version 12.1.1 and later
Information in this document applies to any platform.

Symptoms

Problem Statement
----------------------
As per the existing payment term setup, AR Invoice is split into two installments. 
First Installment = 50 % of Line amount + Full Tax amount (In payment term setup it is defined to capture Freight and Tax in first installment)
Second Installment = 50% of Line amount.
In such case when receipt is created and applied to invoice, it is first applied to first Installment. 

Calculation of amount considering below amounts as an example.
a. Line amount of AR invoice 110000
b. Freight and tax amount 39600

Application calculation for first Installment:
---------------------------------------------------------
(Receipt Amount / Total Line and Tax) * Line Amount = Line Amount Applied
i.e. 
(129800/149600)*110000 = 95,441.176

(Receipt Amount / Invoice Total) * Open Tax Amount = Tax Amount Applied
(129800/149600)*39600 = 34,358.82


Steps to replicate
-------------------
1. Create receipt with GST.
2. Create AR Invoice (with sane GST) with more amount than receipt total amount
    with two installments as per Payment Terms with Installment option as
    "Freight and Tax included in First installment".
3. Payment Terms will have two payment schedules
   a. Seq 1 with 50 (relative amount)
   b. Seq 2 with 50 (relative amount)
4. Apply the Receipt on 1st installment.
5. Run India Period Ending Process.
6. Find that in jai_tax_journal_entries table the receipt credit and debit entries are not matching.


Expected Behavior
---------------------
Such behavior causes accounting mismatch where the receipt credit and debit entries are not matching, causing a mismatch.
Ideally receipt create accounting entries should get knocked off.

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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