IJ41702: INVOICE LINES ARE INCLUDING TAX ON TAX EXEMPT ITEMS.

APAR status

• Closed as program error.

Error description

• The item is marked tax exempt at the item and org levels. When
  it is added to a PO, the PO Line shows the exempt flag.
  
  When the item is received and the invoice generates, the
  invoice line includes tax
  
  STEPS TO REPRODUCE:
  
  
  1st Scenario: NO ISSUES - THE FOLLOWING STEPS (1-12)
  ILLUSTRATE HOW THE TAX-EXEMPT FUNCTIONALITY WORKS WHEN THE ITEM
  IS NOT CONSIGNED.
  
  1) Go to the Companies application and add a consignment GL
  account to the consignment vendor. (BALSTON).
  Consignment GL account: 6000-200-000
  Save the record.
  
  2) Go to Item Master bring up item EB12 and set an item to tax
  exempt.
  Say yes to set at Org level and save the record.
  
  3) Go to Purchase Orders application to order the item EB12
  
  4) Insert a new PO record. Add a PO description and a vendor to
  the PO record.
  PONUM: 1206
  Company: BALSTON - Pax Tax Vendor? is marked
  
  5) Go to PO Lines Tab and insert NEW ROW. Add Item EB12 for the
  tax exempt item, a quantity, and Storeroom.
  The TAX EXEMPT flag is set.
  Storeroom: CENTRAL
  Quantity:1
  
  6) Approve the PO.
  
  7) Go to the RECEIVING application and enter the PO 1206 to
  process the receipt.
  Click SELECT ORDERED ITEMS and select the line to receive.
  
  8) Click OK to close the dialog box and complete the receipt.
  Save the record.
  
  9) Go to the INVOICES application.
  Insert a new record.
  Add a description and enter the PO number (1206) in the PO
  Details section to retrieve the PO details.
  Save the record.
  
  10) Go to the INVOICE LINES tab and click COPY PO LINES button
  top open the Copy PO Lines Dialog.
  
  11) From the dialog, check the PO line and click OK to close the
  dialog box.
  Save the Record.
  
  12) Open the Invoice Line detail.
  The tax-exempt flag is set and there is no tax on the invoice as
  expected.
  
  2nd Scenario: ISSUE - THE STEPS BELOW ILLUSTRATE HOW THE
  TAX-EXEMPT FUNCTIONALITY IS WORKING WHEN THE ITEM IS CONSIGNED.
  
  1) Go to ITEM MASTER and insert a new record (1057).
  Add a description, set to Tax Exempt on item master at Org
  level.
  Set item to active. Save the record.
  
  2) Select ADD ITEMS TO STOREROOM and fill out appropriate
  details.
  
  3) Go to INVENTORY and open the inventory record just added.
  Click VIEW/EDIT Consignment details to open the consignment
  details dialog.
  Check the consignment flag and add the consignment vendor
  (BALSTON).
  Click OK to close the dialog box.
  Maximo sets the Issue Cost type to FIFO.
  
  4) Set the INVENTORY record to ACTIVE.
  
  5) Go to the PURCHASE ORDERS application and insert a new PO
  record (1210).
  Add a description for the record and populate the vendor as the
  consignment vendor (BALSTON).
  Maximo populates the details for the record.
  
  6) Go to PO LINES tab and click NEW ROW to add a line.
  
  7) Populate the item 1057 with the consignment item.
  Add a storeroom (CENTRAL), quantity (1) and unit cost (5.0.).
  Save the record.
  The GL Debit account is the consignment GL (6000-200-000) and
  the tax exempt and consignment flags are set on the PO line.
  Approve the PO.
  
  8) Go to RECEIVING.
  Enter the PONUM (1210) and complete the receipt. (If necessary,
  refer to steps 7-8 outlined above. - scenario 1)
  
  9) Go to INVENTORY USAGE.
  Insert a new Usage record.
  Add A Description and From Storeroom (CENTRAL), Usage Type
  (MIXED)and Save.
  
  10) Click NEW ROW and populate the consigned item as the item
  number.
  Populate the Work Order with an approved work order number.
  Populate the GL Debit account if needed.
  
  or
  
  Click NEW ROW and populate the consigned item as the item
  number.
  Populate the GL Debit account
  Issue to: WILSON
  
  The Issue Cost type is FIFO
  
  11) Click the CHANGE STATUS TO COMPLETE button.
  Click OK to close the dialog and set the record to COMPLETE.
  Completion of this record will trigger the consignment invoice.
  
  12) Go to the Invoice application and filter for consignment
  invoices entered today using advanced search to locate the
  invoice.
  Go to Invoice Lines tab
  
  CURRENT ERRONEOUS RESULT: The tax exempt flag is NOT checked on
  the invoice and tax is calculated on the invoice when it should
  not be.
  
  EXPECTED RESULT: The tax-exempt flag is set and there is no tax
  on the invoice
  
  
  
  Reported in Version: Maximo TPAE 7609
  Application within Maximo: Invoices
  

Local fix

• na
  

Problem summary

• ****************************************************************
  * PROBLEM DESCRIPTION:                                         *
  * Invoice lines are including tax on Taxexempt items           *
  ****************************************************************
  

Problem conclusion

• The fix for this APAR will be included in a future Release.
  

Temporary fix

Comments

APAR Information

• APAR is sysrouted FROM one or more of the following:

• APAR is sysrouted TO one or more of the following:

Fix information

• Fixed component name

  MAXIMO ASST MGM

• Fixed component ID

  5724R46AM

Applicable component levels