[Track Tax] After the IOU is created, the Tax rate changes to 0%

[izarutskaya]

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Version Number: v1.4.69-0
Reproducible in staging?: Y
Reproducible in production?: Y
Found when executing PR : #41264
Email or phone of affected tester (no customers): sustinov@applausemail.com
Logs: https://stackoverflow.com/c/expensify/questions/4856
Issue reported by: Applause-Internal team

Action Performed:

1. Open https://staging.new.expensify.com/
2. Log in to your HT account
3. Create a WS
4. Enable "Taxes"
5. Set "Tax Rate 1" as Workspace currency default
6. Navigate to the WS room
7. Create a manual IOU with default currency and Tax Rate 1
8. Navigate to the details of the created IOU

Expected Result:

After the IOU is created, the Tax rate must remain the same as when the IOU was created

Actual Result:

After the IOU is created, the Tax rate changes to 0%

Workaround:

Unknown

Platforms:

Which of our officially supported platforms is this issue occurring on?

• Android: Native
• Android: mWeb Chrome
• iOS: Native
• iOS: mWeb Safari
• MacOS: Chrome / Safari
• MacOS: Desktop

Screenshots/Videos

Bug6467815_1714562004733.Recording__108.mp4

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[melvin-bot]

Triggered auto assignment to @trjExpensify (Bug), see https://stackoverflow.com/c/expensify/questions/14418 for more details. Please add this bug to a GH project, as outlined in the SO.

[izarutskaya]

We think this issue might be related to the #collect project.

[cretadn22]

Proposal

Please re-state the problem that we are trying to solve in this issue.

The tax rate is incorrect following the submission of the request

What is the root cause of that problem?

We do not include the default taxRateCode in the API params, the API returns an empty tax rate.

What changes do you think we should make in order to solve the problem?

When generating the transactionDraft, it's essential to incorporate default tax rate as the transaction.taxRate.

What alternative solutions did you explore? (Optional)

We need to implement a useEffect to update the default taxRate for transactions, similar to how we handled billable field

App/src/pages/iou/request/step/IOURequestStepConfirmation.tsx

Lines 148 to 150 in 90435fe

	useEffect(() => {
	IOU.setMoneyRequestBillable(transactionID, defaultBillable);
	}, [transactionID, defaultBillable]);

This is my draft implementation and it works well

useEffect(() => {
        const defaultTaxRate = policy?.taxRates?.taxes[policy?.taxRates?.defaultExternalID] ?? {}
   

    const taxRate = {
            text: defaultTaxRate.name,
            keyForList: defaultTaxRate.name,
            searchText: defaultTaxRate.name,
            tooltipText: defaultTaxRate.name,
            isDisabled: defaultTaxRate?.isDisabled,
            data: {
                ...defaultTaxRate,
                code: policy?.taxRates?.defaultExternalID
            },
    }
    
    
    IOU.setMoneyRequestTaxRate(transaction?.transactionID ?? '1', taxRate);


    }, [transaction, policy?.taxRates]);

Reminder: Please use plain English, be brief and avoid jargon. Feel free to use images, charts or pseudo-code if necessary. Do not post large multi-line diffs or write walls of text. Do not create PRs unless you have been hired for this job.

[Krishna2323]

Proposal

Please re-state the problem that we are trying to solve in this issue.

After the IOU is created, the Tax rate changes to 0%

What is the root cause of that problem?

taxAmount and taxCode isn't included in transaction optimistic data.

App/src/libs/TransactionUtils.ts

Line 85 in 90435fe

function buildOptimisticTransaction(

What changes do you think we should make in order to solve the problem?

We need to pass taxAmount and taxCode to getMoneyRequestInformation and then buildOptimisticTransaction from requestMoney.

App/src/libs/actions/IOU.ts

Line 3199 in 90435fe

function requestMoney(

To TransactionUtils.buildOptimisticTransaction we need to pass taxAmount like below.

ReportUtils.isExpenseReport(iouReport) ? -taxAmount : taxAmount,

We also might need to convert the tax amount.

What alternative solutions did you explore? (Optional)

Result

tax_amount_code.mp4

[Krishna2323]

Proposal Updated

• Minor update in main solution
• Result video added

[cretadn22]

Proposal Updated

Adding an alternative solution

[allgandalf]

Proposal

Please re-state the problem that we are trying to solve in this issue.

We are setting the value of tax code to foreign value if we do not get the value from transaction, this causes mismatch in tax code and tax amount

What is the root cause of that problem?

If we see the current OP video, we can se that when we are creating the transaction, we get the correct default rate i.e. because we get those values in MoneyRequestConfirmationList:

App/src/components/MoneyRequestConfirmationList.tsx

Line 313 in 90435fe

const taxRateTitle = taxRates && transaction ? TransactionUtils.getDefaultTaxName(taxRates, transaction) : '';

This works fine, but when we submit the transaction, we essentially submit it using IOURequestStepConfirmation for which we have the transaction as:

Now as seen above, we do not have the field transaction?.taxRate, so while submitting the expense we fallback to foreignTaxDefault:

App/src/pages/iou/request/step/IOURequestStepConfirmation.tsx

Line 76 in 90435fe

const transactionTaxCode = transaction?.taxRate ? transaction.taxRate.data?.code : foreignTaxDefault;

As seen in the OP video the foreignTaxDefault is set to 0 tax, and thus the same gets set for the transaction and we create the transaction with 0 tax even when our default value is 5 %. This is the RCA,

What changes do you think we should make in order to solve the problem?

Now, to solve this, we should follow the same approach we did in MoneyRequestConfirmationList, remember that during the creation of money request, we were able to see the correct tax code because in MoneyRequestConfirmationList we were accessing it correctly, the problem lies in the way we access tax code in IOURequestStepConfirmation, so we need to match it with MoneyRequestConfirmationList:

So update the following:

App/src/pages/iou/request/step/IOURequestStepConfirmation.tsx

Line 76 in 90435fe

const transactionTaxCode = transaction?.taxRate ? transaction.taxRate.data?.code : foreignTaxDefault;

To:

    const taxRates = policy?.taxRates ?? null;
    const transactionTaxCode = taxRates && transaction ? TransactionUtils.getDefaultTaxName(taxRates, transaction) : '';

Also note that in the OP we can see the correct amount but not the correct tax code

Result Video:

327128107-41b3b9e5-f997-407a-8004-48e69562b5fe_RpPnCyIJ.mov

[allgandalf]

We do not have tax code in transaction that is because tax is a property of a policy and not the transaction, so the right way to access it is via accessing the policy, you may also note that category and tags are also not present in transaction hence we take them from policy:

App/src/pages/iou/request/step/IOURequestStepConfirmation.tsx

Lines 43 to 46 in 90435fe

	policyCategories: OnyxEntry<PolicyCategories>;
	/** The tag configuration of the report's policy */
	policyTags: OnyxEntry<PolicyTagList>;

[trjExpensify]

CC: @MonilBhavsar is this on your radar?