LC Amendment- Expiry Date Increase Not Triggering VAT On Commission For Initial Amount Commission (Doc ID 3056229.1)

Last updated on NOVEMBER 06, 2024

Applies to:

Symptoms

On : 14.7.0.0.0 version, Implementation Support

ACTUAL BEHAVIOR
---------------
LC Amendment- Expiry date increase not triggering VAT on commission for Initial amount commission


Issue- No VAT on commission triggered for Initial amount commission for extended maturity date.


EXPECTED BEHAVIOR
-----------------------
VAT should be applied

STEPS
-----------------------
The issue can be reproduced at will with the following steps:

1) Create an LC with contract amt- 2000 (Issue date- 2024-05-01 & Expiry Date- 2024-07-22)
2) CLIQ fired with commission amount- 880.00 [2000.00 (Contract Value) * 110.00 (BC Sell Ex. Rate) * 0.40% (Commission Rate) * 90/90 (Full 01 Quarter from Value Date 2024-05-01]
3) VAT on commission triggered on BISS event- Amt 132 [880 (Commission amount) * 15% (Rate)]
4) Now do amendment in LCDAMEND.
5) Increase the contract amount to 2800 & extend the maturity date to 2024-08-31 (2 Quarters)
6) Save the contract
7) Commission CLIQ trigerred for both- Increased amount of 800 for 2 quarters i.e. 704 and Intial amount for extended 1 quarter i.e. 880 as expected
8) VAT on commission trigerred in AMND event only for Increased amt of 800 i.e. 105.6 [704 (Commission amt * 15% (Rate)].

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, users cannot find reason not to include the VAT

Changes

Cause

My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.