EBI 9.2: Tax Amount Field Differs From the Sum of the Individually Calculated Tax Authority Amounts at the Bill Line – Tax Info Page (Doc ID 3046384.1)

Last updated on SEPTEMBER 10, 2024

Applies to:

Symptoms

In FIN Billing module, the taxes on an Invoice transaction are calculated per individual Tax Authority rate, and if multiple rates exist, then the system should add them up, to generate the Total Tax Amount at each Transaction Line level. However, there seems to be a discrepancy in this approach, where the Tax Amount total is using the sum of Tax Authorities rates, and then apply that rate percentage against the complete amount. As such, at the Billing Invoice Line - Tax Info page (Panel BI_LINE_TAX), the Tax Amount field (Record Field PS_BI_LINE.TAX_AMT) differs from the sum of the individual Tax Amounts calculated for each Tax Authority listed on the Transaction Line (Record Field PS_BI_LINE_TAX_DTL.TAX_AMT).

When the Invoice transaction is finalized, and printed, the resulting PDF file shows the correct/expected Tax Amount, which differs from the one displayed online.

REPLICATION STEPS:

     1.- Log into the FSCM Online Application as a Billing User.
     2.- Navigate to: Set Up Financials/Supply Chain > Common Definitions > Sales and Use Tax > Sales and Use Tax Authorities
     3.- Create, under Set ID SHARE, 6 new Tax Authorities with the following percentages:
          a) Tax Authority ID = ST1, with Percentage of 0.150%
          b) Tax Authority ID = ST2, with Percentage of 0.500%
          c) Tax Authority ID = ST3, with Percentage of 0.250%
          d) Tax Authority ID = ST4, with Percentage of 0.750%
          e) Tax Authority ID = ST5, with Percentage of 6.875%
          f) Tax Authority ID = ST6, with Percentage of 0.500%
     4.- Navigate to: Set Up Financials/Supply Chain > Common Definitions > Sales and Use Tax > Sales and Use Tax Codes
     5.- Create under Set ID SHARE, a new Tax Code ID OSS, and list within all 6 Tax Authorities previously defined (ST1, ST2, ST3, ST4, ST5, and ST6), ending up with a Percent of 9.025%.
     6.- Navigate to: Billing > Maintain Bills > Standard Billing
     7.- Go to Add A New Value section, and define the below values:
            - Business Unit = US001
            - Invoice = NEXT
            - Bill Type Identifier = SVC
            - Bill Source = SERVICE
            - Customer ID = 1000
            - Invoice Date = (Today's Date)
            - Accounting Date = (Today's Date)
     8.- Click on ADD button
     9.- Go to the Line - Info 1 tab, and enter the below values:
            - Quantity = 1
            - Unit of Measure = EA
            - Unit Price = 810.00
            - Gross Extended = 810.00
     10.- Click on the Accounting link, and define Code REV-MAINT.
    11.- Go to the Line - Tax Info page, and define the below values:
            - Ship To = 1000
            - Ship To Location = 1
     12.- Go to the Header - Order Info page, and define the below values:
            - Ship To = 1000
            - Ship To Location = 1
     13.- Go again to the Line - Tax Info page, and ensure that the Tax Code field has a value of OSS (Tax Code previously created).
     14.- Save the Billing Invoice.
     15.- Go to the Header - Info 1 page, and click on the Calculate Taxes icon to generate the tax calculation amounts.
     16.- PROBLEM: Automatically, the system displays the Bill Summary info sub-page, where the Total Taxes field displays a value of 73.10 USD.
     17.- PROBLEM: Go to the Line - Tax Info page, and confirm that for the Invoice Line at hand, the Tax Amount is also 73.10 USD. However, the sum of individual Tax Amounts calculated for each of the 6 Tax Authorities defaulted, is 72.12 USD instead.
            (1.22 USD + 4.05 USD + 2.03 USD + 6.08 USD + 55.69 USD + 4.05 USD = 73.12 USD)
     18.- Go to the Header - Info 1 page, and set the Status of the Invoice to RDY (Ready).
     19.- Navigate to: Billing > Generate Invoices > Non-Consolidated > Finalize and Print Invoices
     20.- Create a new Run Control ID targeting the Business Unit US001, and the Invoice ID just created.
     21.- Launch the BIJOB01 PSJob to completion.
     22.- When reviewing the Print Invoice PDF report, confirm that the Tax Amount displayed is 73.12 USD, which is the correct amount, but differs from the online displayed at 73.10 USD by 2 cents.

To gather more information concerning this scenario and its related problem, refer to the available Replication Steps PDF Document here linked containing the complete configuration and the replication steps necessary to reproduce the problem.

This difference in Tax Amount calculations confuses the Billing Users, and can eventually cause reconciliation problems due to rounding cents differences.

The Bill Line total Tax Amount should equal to the sum of the individually calculated Tax Amount values for each of the listed Tax Authorities present for that transaction. No rounding differences should take place.

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.