0 Replies Latest reply on Sep 6, 2013 2:03 PM by User558445

    OKS to AR Credit Memos - Tax Implication

    User558445

      Hi,

       

      I am hoping most of you could have come across this situation.

      It will be great if you can share your experience or provide some solution pointers.

       

      We are in 11.5.10.2 and my AR Patch set level is 'O'.

       

      I have an invoice that got generated from OKS in Oct'12. Due to tax laws prevailing at that time no tax was calculated on the invoice.

      The tax rates were updated in Feb'13. In Aug'13, a credit memo was generated from OKS for the invoice created in Oct'12.

      The interface has 'Line' item populated with the value to be credited, along with reference line id (trx line id) that is being credited.

      During Auto Invoice import process, the system is calculating tax based on the setup done in Feb'13, than inheriting that tax structure from the original invoice.

       

      Well we logged SR. support team suggested that if 'Calculate Tax on Credit Memo during Auto Invoice' is enabled, it will calculate tax.

      I do understand and agree with their note. But at the same time, the process need to look at what was recorded on the invoice and then if the tax is calculated on the original invoice, then calculate tax accordingly.

       

      Thanks,

      Sunil