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Tax Amount Is Not Applied Before Discount On List Price (Doc ID 428298.1)

Last updated on DECEMBER 09, 2022

Applies to:

Oracle Order Management - Version to 12.2.9 [Release 11.5.10 to 12.2]
Information in this document applies to any platform.
Form:OEXOEORD.FMB - Sales Orders



While entering sales order, the tax for the order line is calculated based on the selling price , i.e. (list price - discount) and not the list price amount prior to the discount modifier being applied, i.e.list price.


Expect that the tax be calculated on the list price and not the selling price.

1) In the 'Tax Codes and Rates' form enter the 'Taxable Basis' as 'Before Discount'.
2) Enter the Tax rate % as 10.
3) Set the application of tax as 'Entered' in the Transaction Type form.
4) Create a modifier for a discount of 10% with Customer Name as the Qualifier.
5) Create a sale order for the customer for a amount of 100.
6) Enter the tax code in the line level.
7) Save the order.
8) Go to Tax amount field in the Pricing Tab. The value will be 9(Nine) instead of 10(Ten).


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