Sales Returns - Incorrect Credit Memo PIS/COFINS Tax Calculation (Based on Amount Instead of Quantity) When Inclusive Tax is Present
(Doc ID 2927116.1)
Last updated on MAY 15, 2023
Applies to:Oracle Financials for the Americas - Version 12.2 and later
Information in this document applies to any platform.
PIS (Program of Social Integration) - federal tax
COFINS (Contribution for the Financing of Social Security) - federal tax
While creating Sales Returns, after the receipt in Inventory module, the Credit Memo is calculating PIS/COFINS (taxes) based on the 'amount' (quantity x unit price) instead of 'quantity' as defined in Latin Tax codes setup. This happens when Inclusive Tax setup is used.
The taxable_amount is incorrect in both ra_customer_trx_lines_all and zx_lines tables. When the Credit Memo reaches the Oracle Receivables (AR) interface (ra_interface_lines_all), the tax group is the same as for the original sales order while the tax codes are setup for Taxable Basis = Quantity.
If the goods are returned, the tax calculation must be the same as in original invoice: PIS and COFINS must be based on quantity for such cases.
STEPS TO REPRODUCE:
- Order Management responsibility > Orders Workbench > Orders, Returns > Create Return Material Authorization (RMA)
- Oracle Receivables responsibility > Transactions > Create a return invoice
- Integrated Receiving > Create invoice receipt
- Inventory responsibility > Transactions > Receiving > Create physical receipt
- The Credit Memo is created in ar_interface_lines_all > Observe that the tax group is the same as for the original sales order
- Oracle Receivables responsibility > Import this data from the interface > Verify ra_customer_trx_lines_all and zx_lines tables, the taxable_amount is incorrect
- Observe PIS/COFINS (taxes) are incorrectly calculated based on the 'amount' (quantity x unit price) instead of 'quantity' (expected per setups)
The PIS/COFINS taxes differences can be manually calculated in Oracle Receivables and General Ledger modules.
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