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Tax for Contract Sublines From Sales Orders is Incorrect When Multiple Quantity Ordered (Doc ID 856895.1)

Last updated on SEPTEMBER 20, 2019

Applies to:

Oracle Service Contracts - Version 11.5.10.2 to 12.1.3 [Release 11.5 to 12.1]
Information in this document applies to any platform.

Symptoms

The tax amount for a Service Agreement contract that was created from a Sales Order is incorrect.  This occurs when the quantity of the items on the Service line on the Sales Order is greater than 1. 

The tax amount being entered for each individual product subline is actually the tax for the total of all the sublines, thus creating inflated tax amounts in the contract lines and the header.

Steps
1.  Create an order for a serviceable product with a quantity greater than 1.
2.  Create an order line for a service and link this service to the order line for the product.
3.  Ship the order to create multiple item instances, each with quantity = 1.
4.  Run the Workflow Background Process for OM Order Lines to close the line for the service.  Create the contract by running the concurrent program Order Capture Integration.
5.  Open the contract subline. The total tax amount for the order line appears in each contract subline.  The subline tax amount should be the total tax amount / n, where n represents the number of products that were ordered.

Cause

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In this Document
Symptoms
Cause
Solution
References

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