E-Business Tax Setup: Setup Tax Users

Platform: R12

Seeded E-Business Tax Responsibilities

Oracle E-Business Tax provides 3 seeded responsibilities which you can assign to your tax-users:

-          Tax Manager: Highest level of access. Assign to users responsible to setup and maintaining tax configuration data

-          Tax Administrator: Assign this responsibility to users who will provide E-Business Tax technical setup and support services.

-          Oracle Tax Simulator: Assign to users responsible to test tax setups.

You can of course define your own custom responsibilities.

See document ‘Designing Custom Responsibility’ (Document to follow).

Shameem Bauccha

30 June 2009

High Level Setup for Oracle E-Business Tax

Platform: R12

Copyright Info: Document from Oracle Help



Oracle E-Business Tax Setup Prerequisites

Complete the setup tasks in the E-Business Suite applications that E-Business Tax uses for tax-related processes. These setup tasks include:

• Legal Entities and Establishments - Set up legal entities and establishments to represent the first parties and tax authorities involved in your tax transactions.


• Lookup Codes - Set up lookup codes for E-Business Tax lookup types.


• Inventory Item Category Sets and Categories - Set up Inventory item categories for the items involved in your tax transactions. You associate Inventory item categories with product fiscal classifications to use in tax determination.


• TCA Party Class Categories and Codes - Set up TCA classifications to create tax-related categories to classify third parties for tax purposes.


• Tax Zones - Set up tax zones to group together geographical regions that share the same tax requirement.

Tax Configuration

Complete the E-Business Tax setup tasks to create a basic tax configuration for each of your tax regimes. A basic tax configuration contains the data applicable to the taxes belonging to a tax regime.

The tax configuration setup tasks are:

• Tax Authority Party Tax Profiles - Set up a party tax profile for each tax authority involved in your transaction taxes.


• Tax Regimes - Set up tax regimes in each country and geographical region where you do business and where a separate tax applies.


• First Party Legal Entity Party Tax Profiles - Set up a party tax profile for each first party legal entity involved in your transaction taxes. When you first set up the party tax profile, set up configuration options for the tax regimes associated with the party.
  
  
  
  • Configuration Options - Set up configuration options to associate tax regimes with first parties.
  
  
  • Service Subscriptions and Exclusions - Where applicable, set up service subscriptions and service exclusions to use the tax services of external service providers for tax calculation.
  
  
  
  


• Taxes - Set up a record for each of the taxes belonging to a tax regime.


• Tax Reporting Codes - Set up tax reporting types and tax reporting codes to capture additional tax information on transactions for your tax reports, and apply them to the entities that you want to report on for each tax.

Where applicable, add tax reporting codes for the tax.

• Tax Status - Set up the tax statuses for each tax.


• Tax Jurisdictions - Set up tax jurisdictions for each tax to identify the geographical locations where the tax authority levies the tax.


• Tax Recovery Rates - Set up tax recovery rates for each tax for full or partial recovery of taxes on transactions.
  
  
  
  • Tax Accounts - Where applicable, enter or update tax accounts for each tax recovery rate.
  
  
  
  


• Tax Rates - Set up tax rates for each tax.
  
  
  
  • Tax Accounts - Where applicable, enter or update tax accounts for each tax rate.
  
  
  • Tax Reporting Codes - Where applicable, add tax reporting codes for each tax rate.
  
  
  
  

Fiscal Classification System

Complete the E-Business Tax setup tasks for fiscal classifications, if you intend to use fiscal classifications in the creation of tax rules for tax determination. Complete each setup task that applies.

• Oracle Inventory - Set up Inventory-based product fiscal classification types using Oracle Inventory category sets. The product fiscal classification is defaulted on the transaction line for any item that belongs to the inventory category set.
  
  
  
  • Product Classification - Set up product fiscal classifications against an Inventory category set.
  
  
  • Product Intended use - Set up product intended use fiscal classifications against an Inventory category set when the intended use of the Inventory item is a factor either in tax determination or the tax recovery rate.
  
  
  
  


• Non-Inventory - Set up non-Inventory-based product fiscal classification types using the E-Business Tax product category. You use the E-Business Tax product category if you do not use Oracle Inventory and for other special product classification needs.
  
  
  
  • Product Classification - Set up product fiscal classifications using the E-Business Tax product category. You can enter these product fiscal classification codes on a transaction line irrespective of the item.
  
  
  • Product Intended Use - Set up product intended use fiscal classifications using the E-Business Tax product category when the intended use of the product fiscal classification is a factor either in tax determination or the tax recovery rate.
  
  
  
  


• Party Classification - Set up party fiscal classifications for your customers and customer sites and suppliers and supplier sites. You can also use the legal classification tax usage of legal activity codes according to your tax determination and tax reporting requirements.


• Transaction Classification - Set up transaction fiscal classifications to classify transactions for tax determination and tax reporting purposes.


• Transaction Business Categories - Set up a hierarchy of transaction fiscal classification codes under transaction business categories to identify specific transaction events.


• Document Classification - Set up document fiscal classifications to classify transactions that require special documentation to accompany the transaction.


• User Defined Transaction Classification - Set up user defined transaction fiscal classification codes to classify any tax requirement that you cannot define using the existing fiscal classification types.

Country Defaults

Set up country default controls to default tax registration information for the applicable tax regimes and taxes to legal establishment party tax profiles.

Tax Exceptions

Set up tax exceptions to apply special tax rates to products.

Tax Rules

Set up tax rules to manage the setup and execution of the E-Business Tax tax determination process for your tax regimes and taxes.



Complete First Party Legal Entity Party Tax Profile

Complete the party tax profile of the first party legal entity.

• Party Classifications - If applicable, associate party fiscal classification codes with this party to use as determining factors in tax rules.


• Tax Reporting Codes - If you associated tax reporting types with party tax profile, enter any applicable tax reporting codes.

First Party Legal Establishment Party Tax Profile

Complete the party tax profile for each legal establishment belonging to the first party legal entity.

• Tax Registration - Set up tax registrations records for the first party legal establishment.
  
  
  
  • Tax Accounts - Where applicable, enter or update tax accounts for each tax registration.
  
  
  • Tax Reporting Codes - If you associated tax reporting types with tax registration, enter any applicable tax reporting codes.
  
  
  
  


• Party Fiscal Classifications - If applicable, associate party fiscal classification codes with this party to use as determining factors in tax rules.


• Tax Reporting Codes - If you associated tax reporting types with party tax profile, enter any applicable tax reporting codes.

Party Tax Profiles for Third Parties

Set up third party tax profiles for your customers and customer sites and suppliers and supplier sites.

Customers

• Party Tax Profile Details - Set up a party tax profile for each customer.
  
  
  
  • Tax Registration - Set up tax registrations records for the customer.
  
  
  • Tax Exemption - Set up tax exemptions for the customer and customer sites.
  
  
  • Tax Reporting Codes - If you associated tax reporting types with tax registration, enter any applicable tax reporting codes.
  
  
  
  


• Party Fiscal Classifications - If applicable, associate party fiscal classification codes with this party to use as determining factors in tax rules.


• Tax Reporting Codes - If you associated tax reporting types with party tax profile, enter any applicable tax reporting codes.

Suppliers

• Party Tax Profile Details - Set up a party tax profile for each supplier.


• Party Fiscal Classifications - If applicable, associate party fiscal classification codes with this party to use as determining factors in tax rules.


• Tax Reporting Codes - If you associated tax reporting types with party tax profile, enter any applicable tax reporting codes.

Configuration Owner Tax Options

Where applicable, set up configuration owner tax options for a combination of configuration owner and application event class.

Application Tax Options

Set up application tax options to update migrated tax setup or to create new tax setup based on the Release 11i defaulting hierarchy model. The defaulting hierarchy model defaults tax classification codes to transactions.

Note: You must complete additional setup tasks to use migrated tax data on transactions with E-Business Tax.

Make Tax Available on Transactions

After you complete your tax setup and verify that the tax setup behaves according to your requirements, you can enable each tax in the tax regime. Enabling a tax makes it available for use on transactions.

Simulate Transactions

After you complete your setup tasks, use the Tax Simulator to test the details of your tax configuration.

Using the Tax Configuration Region

After you complete tax setups, you can use the Tax Configuration region to display tax configuration data by country or by tax regime.



Oracle Help

30 June 2009

Oracle E-Business Tax Overview

Platform: R12

Copyright Info: Entire Document sourced from Oracle Help


Oracle E-Business Tax

[caption id="" align="alignnone" width="829" caption="E-Business Tax Homepage"][/caption]

E-Business Tax allows transaction tax requirements in all geographic locations where the company has business. Configure your taxes to include rules, default values etc. for each tax requirement. At transaction time E-Business Tax uses tax configuration to determine which tax applies. Based on this the tax amounts are calculated.

Tasks involved in setting up tax requirement fall in the following categories:

1. Setting up transaction taxes. Evaluate your tax configuration first.


2. Completing all of the setups and settings related to the processing of taxes on transactions.


3. Setting up tax rules and defaults to manage tax processing.

E-Business Tax and Transaction Taxes

E-Business Tax provides tax services for Order to Cash and Procure to Pay business flows in these applications:

• Advanced Global Intercompany System


• Consigned Inventory


• Oracle General Ledger


• Oracle Internet Expenses


• Oracle iProcurement


• Oracle iStore


• Oracle Order Capture


• Oracle Order Management


• Oracle Payables


• Oracle Projects


• Oracle Purchasing


• Oracle Receivables


• Oracle Services Contracts


• Oracle Trade Management

E-Business Tax does not provide tax services for these transactions:

• Payables withholding taxes.


• Latin American Receivables transactions.


• India transaction taxes.

You can continue to set up and maintain these taxes in the Oracle E-Business Suite using the functionality available from Release 11i.

Oracle Help

30 June 2009

Accounts Payable Setup: Define Payment Terms

Define Payment Terms

Platform: R12

Payables Manager --> Setup --> Invoice --> Payment Terms







Payments Terms are assigned to an Invoice to automatically create scheduled payment when Payables Invoice Validation is submitted for the Invoice

You can define payment terms to create multiple scheduled payment lines and multiple levels of discounts. You can create an unlimited number of payment terms.

Payment terms have one or more payment terms lines, each of which creates one scheduled payment. Each payment terms line and each corresponding scheduled payment has a due date or a discount date based on one of the following:

• a specific day of a month, such as the 15th of the month


• a specific date, for example, March 15, 2002


• a number of days added to your terms date, such as 14 days after the terms date


• a special calendar that specifies a due date for the period that includes the invoice terms date. Only due dates can be based on a special calendar. Discount dates cannot be based on a special calendar.

[caption id="" align="alignnone" width="764" caption="Payment Terms"][/caption]

Define Payment Terms

1. Enter Unique payment term name and description.


2. If you enter Day of Month terms, enter a Cut-off Day.


3. If you enable Automatic Interest Calculation using the Interest Payables Options, enter a unique value in the Rank field.


4. Enter each payment terms line.

Enter % due or Amount to determine the portion of an invoice due on the scheduled payment.

In the Due tab, choose between Calendar, Fixed Date, Days and Day of Month and Months Ahead to determine the due date.

1. If you use discount terms, define payment terms lines in the First Discount , Second Discount, and Third Discount tabs. Define your discounts so that the first discount has an earlier discount date than the second and so on. You can realize only one discount on a payment terms line.

Note: You cannot use a special calendar to define discount terms.

(Document based on Oracle Window Help)

Bauccha Shameem

29 June 2009

Accounts Payable Setup: Set Multi-Org Preferences

Set Multi-Org Preferences (optionally required)

Platform: R12

Payables Manager --> Setup --> Options --> User Operating Unit Preferences





[caption id="" align="alignnone" width="801" caption="Multi-Org Preferences"][/caption]

If you are using a Multi-Org structure, and you want to restrict Org Access, then set the Multi-Org Preferences.

Set the User Level Default Operating Unit.

Set the Preferred Operating Units.

Bauccha Shameem

29 June 2009

Accounts Payable Setup - Define Payables Options

Platform: R12

You cannot define the Payables Options unless the Financials Options have been defined.

Payables Manager --> Setup --> Options --> Payables Options

Based on your profile options, your ‘Operating Unit’ is automatically picked up.

1. Accounting Option

[caption id="" align="alignnone" width="755" caption="Payables Options: Accounting Option"][/caption]

2. Currency

[caption id="" align="alignnone" width="754" caption="Payables Options: Currency"][/caption]

3. Tax Reporting

[caption id="" align="alignnone" width="754" caption="Payables Options: Tax Reporting"][/caption]

4. Invoice

[caption id="" align="alignnone" width="754" caption="Payables Options: Invoice"][/caption]

5. Approval

[caption id="" align="alignnone" width="754" caption="Payables Options: Approval"][/caption]

6. Matching



[caption id="" align="alignnone" width="755" caption="Payable Options: Matching"][/caption]

7. Interest




[caption id="" align="alignnone" width="754" caption="Payables Options: Interest"][/caption]

8. Expense Report

[caption id="" align="alignnone" width="755" caption="Payable Options: Expense Report"][/caption]

9. Payment


[caption id="" align="alignnone" width="754" caption="Payable Options: Payment"][/caption]

10. Withholding Tax


[caption id="" align="alignnone" width="754" caption="Payable Options: Withholding Tax"][/caption]

11. Report

[caption id="" align="alignnone" width="754" caption="Payable Options: Reports"][/caption]

Accounts Payable Setup - Payables System Setup

Platform: R12

Payables Manager --> Setup --> Options --> Payables System Setup

Define the Payables System Setup Options

[caption id="" align="alignnone" width="813" caption="Payables System Setup"][/caption]

Specify the Supplier Number generation options, Payment Terms and Invoice Match Option Control.

Shameem Bauccha

24 June 2009

Accounts Payable Setup - Financials Options

Platform: R12

Prerequisite: Inventory Calendar and Inventory Organization must have been set up.

Refer to the following documents:

Define Inventory Calendar

Setup Inventory Organization

Payables Manager --> Setup --> Options --> Financial Options

Based on your profile options, your ‘Operating Unit’ is automatically picked up.

Refer to the following documents:

System Profile Values for GL

Define Operating Unit (Document to follow)

You have to fill in the following tabs to configure the Financials Options:

1. Accounting


2. Supplier - Purchasing


3. Encumbrance


4. Tax


5. Human Resources

1. Accounting

[caption id="" align="alignnone" width="756" caption="Financial Options: Accounting"][/caption]

Specify the number of ‘Future Periods’. Fill in the GL Accounts where required.

Note: If during the defining of our Accounting Key Flexfield Structure, we have allowed dynamic insert, we can enter the accounts directly without having to create the accounts first. If that is not the case, then we need to create all the valid accounts combinations before we can use them here.

Refer to the following documents:

Define Accounting KFF - Create Chart of Accounts

2. Supplier – Purchasing

[caption id="" align="alignnone" width="754" caption="Financials Options: Supplier-Purchasing"][/caption]

Specify the Ship-to Location and Bill-to Location. Inventory Organization is mandatory.

Note that we need to create the Inventory Organization and define the Additional Organization Information Details.

3. Encumbrance

[caption id="" align="alignnone" width="755" caption="Financials Options: Encumbrance"][/caption]





Specify the options for encumbrance if you are using encumbrance accounting.

4. Tax

[caption id="" align="alignnone" width="755" caption="Financials Options: Tax"][/caption]





Specify your VAT Registration information if applicable.

5. Human Resources

[caption id="" align="alignnone" width="756" caption="Financials Options: Human Resources"][/caption]





Based on your profile options, your Business Group is automatically picked up.

Specify your ‘Expense Reimbursement Address’. The Employee generation method is automatically picked up from the Extra Information configured on your Business Group.

Refer to the following documents:

Define Business Group (Document to follow)

Shameem Bauccha

24 June 2009

Inventory Organization - Receiving Options

Platform: R12, 11.5

Refer to document ‘Create Inventory Organization‘.

[caption id="" align="alignnone" width="891" caption="Receiving Options"][/caption]

You also need to configure your Receiving Options and input your Accounting for Receiving.

Note, now you have configured your inventory organization. You need to do the same thing for all your inventory orgs (that is you need to configure the Additional Organization Information for all your inventory orgs).

Shameem Bauccha

24 June 2009

Inventory Organization - Organization Parameters

Platform: R12, 11.5

Refer to document ‘Create Inventory Organization‘.

Define Organization Parameters

1. Inventory Parameters

[caption id="" align="alignnone" width="716" caption="Inventory Parameters"][/caption]

Before defining any Inventory Organization, we need to have a Master Inventory Organization which acts as a central repository for items. After we have defined the Master Inventory Organization, we need to define its organization parameters. Generally we give the code 'IMM' to denote the Inventory Item Master Organization.

We need to attach the Master Organization in the Organization parameters. Attach the Inventory Calendar.

Refer to document 'Define Inventory Calendar'.

Configure the Inventory Parameters including locator control.

2. Costing Information

[caption id="" align="alignnone" width="717" caption="Costing Information"][/caption]

The Operating Unit is automatically picked up as the Costing Organization.

Choose the appropriate 'Costing Method' (FIFO, Standard, Average). Specify whether to Transfer to GL.

Input the valuation Accounts.

3. Revision, Lot, Serial and LPN

[caption id="" align="alignnone" width="716" caption="Revision, Lot, Serial and LPN"][/caption]

If you are using Lot, Serial and/or LPN control, configure this window, otherwise accept the default values.

4. ATP, Pick, Item-Sourcing

[caption id="" align="alignnone" width="717" caption="ATP, Pick, Item-Sourcing"][/caption]

If you are using iProcurement, configure the ATP defaults, Picking defaults and Item-Sourcing rules.

5. Inter-Org Information

[caption id="" align="alignnone" width="716" caption="Inter-Org Information"][/caption]

Configure this section for Inter-org transfers.

6. Other Accounts

[caption id="" align="alignnone" width="716" caption="Other Accounts"][/caption]





Specify the following Accounts:

• Receiving Accounts


• Profit and Loss Accounts


• Other Accounts

When you are done, save and click on 'OK'. You will get the following warning:





[caption id="" align="alignnone" width="412" caption="Note-Costing Method"][/caption]

Bauccha Shameem

24 June 2009

Inventory Organization - Customer/Supplier Association

Platform: R12, 11.5

Refer to document ‘Create Inventory Organization‘.

Customer/Supplier Association



[caption id="" align="alignnone" width="769" caption="Customer/Supplier Association"][/caption]

This is important to define if you will allow internal requisition and sales between your inventories.

Detailed explanation to follow during preparation of Inventory Tutorial.

Shameem Bauccha

24 June 2009

Inventory Organization - Accounting Information

Platform: R12, 11.5

Refer to document 'Create Inventory Organization'.

Accounting Information



[caption id="" align="alignnone" width="769" caption="Accounting Information"][/caption]



Attach your primary leder.

Based on your Primary Ledger, your Legal Entity i automatically picked up.

Optionally if you have defined an Operating or have multiple units on the same insrtallation, attach the Operating Unit.

Save and Click on 'OK'.

Shameem Bauccha

24 June 2009

Create Inventory Organization

Platform: R12, 11.5

Define Organization and classify organization as ‘Inventory Organization’

Refer to the following documents:

Setting up Organizations

Create Organization

Additional Organization Information

You can access the Additional Organization Information by selecting the classification and clicking on the 'Others' button.



Select appropriate Extra Information to configure.

[caption id="" align="alignnone" width="391" caption="Additional Organization Information"][/caption]

In the case of Inventory Organization, 4 Extra Info are defined:

• Accounting Information


• Customer/Supplier Association


• Inventory Information


• Receiving Information

Shameem Bauccha

24 June 2009

Create Organizations

Platform: R12, 11.5

Understanding the ‘Organization’ window

[caption id="" align="alignnone" width="617" caption="The Organization window"][/caption]

The ’Organization’ window consists of the following sections:

1. Name: The name of the Organization
2. Type: This is a lookup that you user can define (ORG_TYPE)

(Document on Lookups to follow)

3. Date: Effective Date. This can also be changed manually while creating the organization.
4. Location: Location Details and Address
5. Descriptive Flexfield: You can configure the ‘Location Address’ Descriptive Flexfield if required.

Refer to document ‘Identify Descriptive Flexfield’ to know which DFF to setup.

6. Organization Classifications: This will determine what type of organization this is and how the entity will behave in the application depending on the role it plays. An organization may have several classifications attached to it.

For example, an organization may have people registered for it and may at the same time be maintaining stock and act as a training center. In that case, the organization will have to be classified as:

1. HR Organization so that employees may be assigned there


2. Inventory Organization so that items may be assigned to it


3. Training Organization so that the organization may be available as a training center.

(More to follow on each Organization type – refer to respective applications).

7. Others: Depending on the classification, Additional Information may have to be entered.

Setup Organization

1. Create Location

Inventory --> Setup --> Organizations --> Locations



[caption id="" align="alignnone" width="632" caption="Location"][/caption]





Location is a shared between HRMS, Inventory and Purchasing. Some of the fields not used by HRMS are disabled when Inventory and Purchasing is not installed.

Setting the scope as ‘Global’ means the location is shared across all Business Groups. Setting the location as ‘Local’ will make the location available only for the Business Group in question.

Select the scope and give the location a name.



Address Details



[caption id="" align="alignnone" width="605" caption="Address Details"][/caption]





Choose the appropriate address style and enter the address of the location. If you have defined your own address style then you can choose it here.

Refer to the following document:

Create Custom Address Style (Document to follow)



Shipping Details



[caption id="" align="alignnone" width="604" caption="Shipping Details"][/caption]





This tab is important if you are using Inventory and Purchasing. Otherwise accept the default values.



Other Details



[caption id="" align="alignnone" width="605" caption="Other Details"][/caption]

2. Create Organization

Inventory --> Setup --> Organizations --> Organizations






[caption id="" align="alignnone" width="707" caption="Organization"][/caption]




Alter effective date to a default date in the past or the organization creation date. Give a name to the Organization. Attach the location previously created. The location address gets automatically populated

Save the Organization.

3. Organization Classification

Look up the Organization classification. Ensure the 'enabled' checkbox is checked. Save. Click on other to enter the Extra Information (Additional Organization Details) as appropriate.

Shameem Bauccha

24 June 2009

Define Inventory Calendar

Inventory --> Setup --> Calendar

Define Calendar. Select Quarterly Type, Specify Calendar Date Range.

[caption id="" align="alignnone" width="505" caption="Workday Calendar"][/caption]

1. Workday Patterns

Click on 'Workday Patterns' and define your patterns.



[caption id="" align="alignnone" width="476" caption="Workday Patterns"][/caption]

Save and Close.

2. Shifts

Click on 'Shifts'.


[caption id="" align="alignnone" width="505" caption="Shifts"][/caption]

Create your shifts and define the shift times.



[caption id="" align="alignnone" width="266" caption="Shift Times"][/caption]

Save and Close

3. Calendar Dates

Click on 'Calendar Dates' to define.



[caption id="" align="alignnone" width="854" caption="Calendar Dates"][/caption]

Save and Close.





Build Calendar

Once you are done with defining the Calendar, you need to build it for any change to take effect.

Go to the Menu and navigate as follow:

Tools --> Build

[caption id="" align="alignnone" width="123" caption="Build Calendar"][/caption]

A request is submitted.

[caption id="" align="alignnone" width="296" caption="Note"][/caption]

You can view the request.

[caption id="" align="alignnone" width="710" caption="Build Workday Calendar Request"][/caption]

Once your request is completed, your Calendar is ready. You can exit the ‘Workday Calendar’ window. It will remind you need to rebuild your calendar if you have made changes.

[caption id="" align="alignnone" width="414" caption="Reminder"][/caption]

Each time you make changes to your Calendar, remember to rebuild your calendar.

Shameem Bauccha

24 June 2009

How to identify Descriptive Flexfield on window

Platform: 11.5, R12

Go to the window in question.

Click on any field in the block where the DFF is found.

Then go to the menu and navigate s follow:

Help --> Diagnostics --> Examine

[caption id="" align="alignnone" width="370" caption="Examine"][/caption]

You are prompted for a password to enable diagnostics

[caption id="" align="alignnone" width="430" caption="Enable diagnostics"][/caption]

Key in the database password and click on ‘OK’.

[caption id="" align="alignnone" width="361" caption="Examine Field and Variable Values"][/caption]

Take note of the block.

Click on ‘Block’ and choose $DESCRIPTIVE_FLEXFIELD$

[caption id="" align="alignnone" width="295" caption="Choose a block"][/caption]

Click on Field and choose the appropriate field (based on the block)

[caption id="" align="alignnone" width="361" caption="DFF Value"][/caption]

In the ‘Value’ Field you will get the Descriptive Flexfield that you have to configure and the application that the DFF is registered in.

In the above example we have to define the 'Location Address' Descriptive Flexfield in the 'Human Resources' Application.

Shameem Bauccha

24 June 2009