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

Last updated on NOVEMBER 27, 2019

Applies to:

Oracle Order Management - Version 11.5.10.2 to 12.2.9 [Release 11.5.10 to 12.2]
Information in this document applies to any platform.
Form:OEXOEORD.FMB - Sales Orders
***Checked for relevance on 20-Dec-2013***


Symptoms

ACTUAL BEHAVIOR

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.


EXPECTED BEHAVIOR

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


STEPS
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).


Cause

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In this Document
Symptoms
Cause
Solution
References

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