Credit Adjustment Taxation

Submitted by Guest on Thu, 01/03/2012 - 07:34

General User's Discussion

Hi All,

I've noticed a strange behavior regarding credit adjustments. When I add a credit adjustment, and click okay, it auto-calculates a tax value for this. Is there some reason that it would be taxed? We use this for adding credit to people's accounts for referrals. Should we be using some other mechanism for this?

As it is, I'm going to attempt to run through the database and change all the tax values to 0.0 because there should be no taxation based on the usage we have. Perhaps we should be doing a "credit" instead with a product designed for adding referral credits?

Thanks, Paul

Re: Credit Adjustment Taxation

Submitted by pstadler (not verified) on Fri, 02/03/2012 - 01:48.

Well, I figured this out. I guess it is an implementation issue. It turns out that the practice itself has some tax associated with it as a default of sorts. I had previously thought that the practice needed to have the tax rate/scheme associated in order for products used there. It doesn't appear that's the case because a tax rate can be specified at the product level. Disabling the sales tax at the practice level solved the problem.

This code illustrated what it's doing:

     private List<Lookup> getTaxRates(FinancialAct act, Party customer) {
        ActBean bean = new ActBean(act);
        Collection<Lookup> taxRates;
        if (bean.isA(CHARGE_ITEM_TYPES)) {
            Product product = (Product) bean.getParticipant("participation.product");
            if (product == null) {
                taxRates = Collections.emptyList();
            } else {
                taxRates = getProductTaxRates(product);
            }
        } else if (bean.isA(ADJUSTMENT_TYPES)) {
            taxRates = getPracticeTaxRates();
        } else {
            throw new TaxRuleException(InvalidActForTax, act.getArchetypeId().getShortName());
        }
        List<Lookup> result = new ArrayList<Lookup>(taxRates);
        if (!result.isEmpty()) {
            List<Lookup> exclusions = getCustomerTaxRates(customer);
            result.removeAll(exclusions);
        }
        return result;
    }

Cheers, Paul