E-Business Tax setup: Other Prerequisites

Platform: R12



Other Prerequisites

Below is the list of other major prerequisites before you can configure tax.

1. Setup Accounts and Accounting Information
   
   
   
   1. Ledgers
   
   
   2. Legal Entity Balancing Segments
   
   
   3. Accounting Setup
   
   
   4. Complete Accounting Setup
   
   
   
   

Refer to ‘Accounting Setup Manager’ (Document to follow).

1. Setup Oracle Inventory
   
   
   
   1. Define Inventory Value Sets
   
   
   2. Define Inventory Item Category Structure
   
   
   3. Define Category Set
   
   
   4. Define Inventory Categories
   
   
   5. Associate Inventory Items to Category sets
   
   
   
   

Refer to ‘Inventory Tutorial’ (Document to follow).



Shameem Bauccha

30 June 2009

E-Business Tax Setup: Create E-Business Tax Lookups

Platform: R12



Create User Extensible Tax Lookup Codes



E-Business Tax Administrator --> Home --> Task List --> External Dependencies --> Create User Extensible Tax Lookup Codes

Click on the ‘Go to Task’ icon.

[caption id="" align="alignnone" width="754" caption="E-Business Tax Lookup Codes"][/caption]



Use this window to update existing lookup codes and add additional lookup codes

See also ‘E-Business Tax Lookup Codes in R12’.

Shameem Bauccha

1 Jul 2009

E-Business Tax setup: Create Tax Authorities

Platform: R12



Create Reporting and Collecting Tax Authorities

E-Business Tax Administrator --> Home --> Task List --> External Dependencies --> Create Collecting and Reporting Tax Authorities

Click on the ‘Go to Task’ icon.

[caption id="" align="alignnone" width="926" caption="Legal Authorities"][/caption]

If you have not yet defined a Legal Authority while doing GL setup (in the Legal Entity Configurator Module), you may do so now by clicking on ‘Create’.

[caption id="" align="alignnone" width="916" caption="Create Legal Authority"][/caption]

Click on ‘Save and Add Details’.

[caption id="" align="alignnone" width="856" caption="Legal Authority Confirmation"][/caption]

You will get a confirmation message that the Legal Authority has been created.

You can go to the ‘Contact Information’ tab to add contacts and addresses.

Note:

You may also create the Legal Authority as follows:

Legal Entity Manager --> Setup --> Legal Authorities



[caption id="" align="alignnone" width="856" caption="Legal Entity Configurator - Legal Authorities"][/caption]





Click on ‘Create’ and proceed as already explained.

You can query and search for the Legal Authority.

[caption id="" align="alignnone" width="853" caption="Legal Authority Search"][/caption]

Note that you can add legislative categories if required. Click on the ‘View Details’ icon.

[caption id="" align="alignnone" width="852" caption="Legal Authority"][/caption]

Click on ‘Update’.

[caption id="" align="alignnone" width="851" caption="Update Legal Authority"][/caption]

Click on ‘Add Legislative Category’.

[caption id="" align="alignnone" width="724" caption="Add Legislative Category"][/caption]

The ‘Search and Select: Add Legislative Category’ window is opened. Click on Go. Check the appropriate categories and click on ‘Select’.

Note: When you set up a Legal Authority, set its Legislative Category to ‘Transaction Tax’.

Refer to Document ‘Legislative Categories’ (Document to follow).



[caption id="" align="alignnone" width="850" caption="Updated Legal Authority"][/caption]



Click on ‘Apply’.

Shameem Bauccha

1 July 2009

Shameem Bauccha

1 July 2009

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

E-Business Tax Setup: External Depedencies

Platform: R12

External Dependencies



[caption id="" align="alignnone" width="743" caption="E-Business Tax Setup - External Dependencies"][/caption]







E-Business Administrator --> Home

When you navigate to the E-Business Tax Homepage, you will see a task list that need to be configured before you can use tax in any module.

The task list is broken down in 2 major sections:

1. External Dependencies


2. Tax Configuration

External Dependencies refers to setups on other applications that need to be completed before we can complete with tax configuration.



External Dependencies:

1. Create First Party: Legal Entity and Establishments. This is a required step. You need to create a legal entity and an establishment


2. Create Reporting and Collecting Tax Authorities. You need to have at least one Legal Authority defined. You can set the Legal Authority as Reporting and Collecting Tax Authorities. In some cases these may be two separate Legal Authorities.


3. Create User Extensible Tax Lookup Codes. Preset values already exist. You may decide to alter/add values according to your own requirements.


4. Create Item Category sets. This is at Inventory level.


5. Create Item Categories. This is at inventory level.


6. Create Party Class Category.


7. Create Class Category Codes.


8. Create Geography. If you have taxes that vary depending on geographical location, then you need to configure geography. This setup will be specific to country requirements where the Operating Unit has transactions.


9. Create Tax Zone Types. You can go at levels lower than country level also in case taxes vary within a country (from state to state for example).

In this long list, only the first two tasks are required in all cases.



Shameem Bauccha

1 July 2009

E-Business Tax Setup: Setting Up TCA Geography Hierarchy

Platform: R12

E-Business Tax TCA Geography Hierarchy

In case taxes are levied at a level lower than country level (example at province level) or tax characteristics vary at a level lower than country level, TCA Geography hierarchy must be defined.

TCA Geography hierarchy much be set for each country where there is a tax requirement. The TCA geography hierarchy provides a single reference source for all geographical and location-based information for all E-Business Suite applications.

TCA Geography must be set-up before you can define the following tax-related setups:

-          Legal Entities and Establishments

-          Tax Zones

-          Tax Regimes

-          Taxes

-          Tax Jurisdictions

-          Tax Rules

Use TCA Administration to maintain the following aspects of Geography hierarchy:

-          Country Structure

-          Geography Types

-          Address Validations



In our case we are not using TCA Geography Hierarchy as we have only one tax levied at country level.

Shameem Bauccha

1 July 2009

E-Business Tax Setup: Profile Options

Platform: R12

E-Business Tax Profile Options

All E-Business Tax profiles start with ‘eBTax:’

Navigate to the ‘System Administrator’ Responsibility and query for ‘eBTax:%’

[caption id="" align="alignnone" width="894" caption="EBTax Profile Options"][/caption]

Set the profiles as required at the level required.

Refer to the following documents on profiles:

Define System Profile Values



Shameem Bauccha

30 June 2009