E-Business Tax Setup: Create First PartyLegal Entity and Establishment

Platform: R12

Create First Party: Legal Entity and Establishments

This is a required step if you want to use E-Business Tax. If you are using General Ledger, then you will have already defined the Legal Entity and Establishment.

Refer to the following documents:

-          Accounting Setup Manager

-          Legal Entity and Establishment

You need to define the following:

-          Legal Entity

-          Legal Establishments for the Legal Entity

Note that Legal Establishments are setup under a parent Legal Entity.



Click on the ‘Go to Task’ icon. Alternatively you may also navigate as follows:

Legal Entity Manager --> Legal Entity Configurator



[caption id="" align="alignnone" width="852" caption="Legal Entity Configurator Homepage"][/caption]







First Party: Legal Establishment

Setup a Legal Establishment for each office, warehouse, centre etc. which requires registration with a tax authority for one or more taxes. You can setup Party Tax Profiles for each Legal Establishment.

[caption id="" align="alignnone" width="855" caption="First Party Legal Entity and Establishment"][/caption]

Set the following for each Legal Establishment:

-          Party Tax Profiles

-          Tax Registrations

[caption id="" align="alignnone" width="854" caption="Establishment"][/caption]

Also setup your Operating Unit.

See Document ‘Operating Unit’ (Document to follow).



Shameem Bauccha

1 July 2009

Technical - Territory / Jurisdiction Tables

Below is the list of tables concerned when you create territories, jurisdictions, legal entities, establishments and registrations:

1. XLE_JURISDICTIONS_VL


2. XLE_REGISTRATIONS


3. XLE_ENTITY_PROFILES


4. XLE_ETB_PROFILES


5. XLE_FIRSTPARTY_INFORMATION_V


6. XLE_REGISTRATIONS

I had an issue with creation on Legal Entities in R12.0.4. When I created the legal entity, it created the legal entity twice and created 2 registrations as well. I was unable to disable one of them as any change to one would reflect on the other.

As a consequence when I was attaching the Legal Entity in my accounting setup, I had to attach both legal entities. This was not acceptable however.

When I checked, even the jurisdiction was created twice. Going through the above tables and clearing the inappropiate lines resolved the issue.

Note however that this is not a recommended solution.

Shameem Bauccha

18 June 2009