Oracle Service Contracts – Calculate Estimated Tax with Higher Accuracy
By LuciaC-Oracle on May 30, 2014
On a Service Contract the tax rate and its effectivity can change over the contract duration. Hence, service organizations need to provide an accurate picture of the estimated tax that the customer might end up paying.
Prior to Release 12.1.3+, the Oracle Service Contracts application calculated the estimated tax based on the line/ sub line start date. With Release 12.1.3+ (via Patch 16601269:R12.OKS.B) , new functionality provides users with an option to calculate tax at contract billing schedule level, thereby considering the changes in tax rate effectivity at that level.
A new profile option 'OKS: Calculate Tax at Schedule' has been introduced which can be used to control whether the existing or new functionality is used. If the profile is set to 'Yes' the application calculates tax at the billing schedule level for all lines/ sub lines. For more details on the implementation steps and functionality, please refer to Doc ID 1676700.1: Oracle Service Contracts – How To Calculate Estimated Tax with Higher Accuracy.