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11i: TRX: Short Term Money Not Calculating Tax Amount Explanations (Doc ID 755927.1)

Last updated on JULY 10, 2020

Applies to:

Oracle Treasury - Version to 12.2.5 [Release 11.5 to 12.2]
Information in this document applies to any platform.
Information in this document applies to any platform.


Q 1) if select principal schedule of type 'PRN_F' (Flat Basis), the 'principal tax amount' got
calculated and is populated in the 'amount' field of the same form, but its value is more than the 'interest amount' value calculated in 'Interest Details' tab. Is it correct??
If the principal amount is 10,000,000 , interest rate is 7.5 and the principal tax rate is 0.836065, then the calculated interest_amount is 2,083.33 and principal_tax_amount is 83,606 (according to below specified formula).
Is it the correct value??

Q 2) If select principal schedule of type 'PRN_A' (Annual Basis), the principal tax amount is not getting populated in the same form.
The calculated 'principal_tax_amount' is shown in other transaction (say Transaction no.2) which is created in the process of closing the actual transaction (say transaction no.1) .  Closed the transaction no.1 using renegotiation window, where the

principal amount was decreased  to zero,  and settled the interest . Then it created new transaction (transaction no.2), in which the calculated principal tax amount (expected amount value) is displayed.

Is this the only way to get the principal_tax_amount for the schedule type 'PRN_A' ?
And why is it not getting calculated in the same transaction (transaction no.1)?

Q 3). In the case of type 'PRN_A', the principal tax amount is calculated using the following formula
Principal_tax_amount = ((Principal_amount) * (Principal_tax_rate) *
(Number of days)) / 100 * (Year_basis).

The customer is expecting the same formula for the schedule type PRN_F, because this formula is giving the expected principal_tax_amount for them.
So, what can we suggest to the customer ? whether to use schedule type PRN_F or PRN_A ?

For the schedule type PRN_A, they are expecting the principal_tax_amount to be calculated in the same transaction (not in other transaction), can be displayed like that ??


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