How to Avoid Wrong Tax Calculation Where Product Fiscal Classification Cannot be Defined?

(Doc ID 739844.1)

Last updated on JUNE 14, 2017

Applies to:

Oracle Purchasing - Version 12.0.4 and later
Oracle E-Business Tax - Version 12.0.4 to 12.0.4 [Release 12.0]
Information in this document applies to any platform.

Goal

There is a problem in tax calculation for Purchase Orders using Tax Rules based on the Product Fiscal Classification.

The issue is with the "Product Fiscal Classification" - "Inventory Based" exception, which is not considered, while calculating the Tax for a PO. The issue can be granular drilled down in to the following two cases:

1. Creating a PO with an "item", which belongs to the exception "category" [Product Fiscal Classification - Inventory Based exception rule was setup for this category]. In this case, Tax is exempted as per the setup, which is proper.
2. Creating a PO with a "category" only, without any "item" [Product Fiscal Classification - Inventory Based exception rule was setup for this category].
In this case, Tax is not exempted as per the setup, which is not proper.

The issue is with only the second case, as we would expect that the tax exemption should come in the second case too.

Is there any way to avoid wrong Tax Calculation when product fiscal classification cannot be defined?

Solution

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