Credit Memo TAX Line for Applied Credit Memo

Oracle has provide the facility of Creating Credit memo with Invoice line Application Details i.e. when a Credit Note is imported into Oracle we can import it with the application details of an invoice or a Debit Memo.

The Application works for both LINE and TAX records but the way Oracle handles the Credit Memo application for TAX and LINE type records is different

For LINE type record AutoInvoice allows over application import even though the actual line amount is less that the CM line amount.

but for TAX line such case doesnt worl and the maximum amount permissible is the TAX line amount of the applied invoice

EG :

You have an invoice and a CN like below :

Now when we import the Credit Note into Oracle we will expect Oracle to import the Credit Note like the above scenario with Credit Lines having the amounts as expected with corresponsiding applications to invoice,

But when the import is done the credit Note gets Imported as below :

If you observe the TAX line 2 is imported with amount 75 and not 80 , but LINE 2 is imported with amount 180 as expected.

In this Case when Credit Note is imported LINE 1 will be applied to LINE 1 of invoice and will have 0 Open amount , Same for TAX line 1

For LINE 2 the amount 150 will be applied to Invoice LINE 2 and 30 will be open. For TAX line 2 the invoice will be imported with Amount 75 , same as the Invoice TAX line amount and the same will be fully applied 

This is how Autoinvoice is designed to work for Credit Note Applied TAX line import.

If you are faced with such a scenario to avoid in future you can follow the below approach :

1. Create On Account Credit Memo and perform the application manually in Oracle outside Auto Invoice import Process