Tax Configuration: Create Tax

Platform: R12

Tax Manager --> Tax Configuration --> Taxes

A tax is defined under a tax regime. You need to define a tax regime before you define your tax.

Refer to document ‘Create Tax Regimes’.

Create Tax





Click on ‘Create’.

Main Information

Configure the Tax.

Select the previously defie tax regime code. For your tax to work, define it for party type ‘Operating Unit Owning Tax Content’ in the Configuration Owner.

You may choose to create the new tax from scratch or based on an existing tax (whereby some settings will be defaulted).

If you have localized taxes based on geography, then the need to define your tax zones before.Configure your tax at the appropriate geography type (country, state, city, region etc…). If you are not using tax zones, set your taxes at country level.

You may decide to configure Exchange rate at this level.

You can also set the Reporting Tax Authority and Collecting Tax Authority.

Controls and Defaults

Check the ‘Allow Entry of Manual Tax Lines’ if you intend to allow user to manually input tax lines on invoices. To be able to check that option, you must however check the ‘Allow Overide and Entry of Inclusive Tax Lines’ option also.

In our scenario we will not allow user to manually create tax lines nor will we allow them to override calculated tax lines.

Tax Account Controls

Tax Exeptions/Exemptions Control

Tax Recovery Controls

If you are defining recoverable taxes, then you need to check the ‘Allow Tax Recovery’ option. Along with rate for tax, you will also need to define tax recovery rate.

In our scenario, taxes are not recoverable. However we have defined them as recoverable and set the recovery rate as 0.

Defaults

Tax Reporting Codes

In some countries, you may have specific tax recording requirements. Configure this section if that is the case.

Tax Configuration: Complete First Party Legal Entity Party Tax Profile

Platform: R12

Tax Manager --> Parties --> Party Tax Profiles

On the Tax Manager Homepage, click on the ‘Go to Task’ icon.

[caption id="" align="alignnone" width="920" caption="Search First Party Legal Entity - Tax Profile"][/caption]

Ensure Party Types is ‘First Party Legal Entity’. Type in the Party Name and click on ‘Go’.

[caption id="" align="alignnone" width="893" caption="Party Tax Profiles"][/caption]

Click on ‘Update Tax Profile’.

[caption id="" align="alignnone" width="916" caption="Update Party Tax Profile"][/caption]

Configure the four sections as appropriate:

-          Main:

[caption id="" align="alignnone" width="905" caption="Party Tax Profile - Main"][/caption]

-          Classifications

[caption id="" align="alignnone" width="893" caption="Party Tax Profile - Classifications"][/caption]

-          Tax Reporting Codes

[caption id="" align="alignnone" width="905" caption="Party Tax Profile - Tax Reporting Codes"][/caption]

-          Configuration Options

[caption id="" align="alignnone" width="885" caption="Party Tax Profile - Configuration Option"][/caption]

You can see that the Tax Regime is already associated with the First Party Legal Entity.



Shameem Bauccha

1 July 2009

Tax Configuration: Create Tax Regimes

Platform: R12

Create Tax Regimes
Tax Manager --> Tax Configuration --> Tax Regimes

[caption id="" align="alignnone" width="853" caption="TaxRegimes"][/caption]

Click on ‘Create’.

[caption id="" align="alignnone" width="854" caption="Tax Regime - Main Details"][/caption]

Expand the ‘Controls and Defaults’ Region and Configure.

[caption id="" align="alignnone" width="890" caption="Tax Regime Controls and Defaults"][/caption]

Note that unless you have set the Legal Authority as Reporting Tax Authority or Collecting Tax Authority while creating the Party Tax Profile for the Legal Authority, the Legal Authority will not be available in the drop down list.
See Document ’E-Business Tax Configuration – Tax Authority Party Tax Profile’
Expand the ‘Compounding Level Controls’ region and Configure.

[caption id="" align="alignnone" width="864" caption="Tax Regime Compounding Level Controls"][/caption]

When you are done, click on ‘Continue’.

[caption id="" align="alignnone" width="1024" caption="Create Tax Regime - Configuration Option"][/caption]

Add your First Party Legal Entity. Choose your ‘Configuration for Taxes and Rules’. If you are not using Common Configuration, specify your ‘Configuration for Product Exceptions’. Specify an effective date. US localizations require Service Subscriptions. Click on ‘Service Subscriptions’ to add Service Provider.

[caption id="" align="alignnone" width="897" caption="Service Subscriptions"][/caption]

When you are done, click on ‘Finish’.

[caption id="" align="alignnone" width="900" caption="Tax Regime Creation Confirmation"][/caption]

You will get a confirmation that the tax regime was created successfully.
You can search and see that the Regime has been created.

[caption id="" align="alignnone" width="899" caption="Search Tax Regime"][/caption]

Shameem Bauccha

1 July 2009

Query to determine approval path for PO documents

Platform: Oracle R 11.5.10

This query can be used to determine which approval path a Requisition or a Purchase Order has taken:

-- For Requisition
select pos.name
from po_requisition_headers_all rh, wf_item_attribute_values av, per_position_structures pos
where av.item_type = rh.wf_item_type
and av.item_key = rh.wf_item_key
and av.name = 'APPROVAL_PATH_ID'
and to_number(av.NUMBER_VALUE) = pos.position_structure_id
and rh.segment1 = '&1' ;
--and rh.org_id = 172;   -- You can use your org_id if necessary

-- For Purchase Order
select pos.name
from po_headers_all poh, wf_item_attribute_values av, per_position_structures pos
where av.item_type = poh.wf_item_type
and av.item_key = poh.wf_item_key
and av.name = 'APPROVAL_PATH_ID'
and to_number(av.NUMBER_VALUE) = pos.position_structure_id
and poh.org_id = 103
and poh.po_header_id = 1324;  --You need to retrieve your PO_HEADER_ID

Tax Configuration: Create Tax Authority Party Tax Profiles

Platform: R12

Create Tax Authorities Party Tax Profile

Tax Manager --> Tax Configuration --> Tax Authorities Party Tax Profiles



[caption id="" align="alignnone" width="804" caption="Party Tax Profiles"][/caption]







Select the Party Type ‘Tax Authority’. Search for the Party Name (the Legal Authority you created). Click on ‘Go’.

Note that unless your attach the Legislative Category ‘Transaction Tax’ to the Legal Authority you will not get the Legal Authority here.

Click on the ‘Create Tax Profile’ icon.

[caption id="" align="alignnone" width="808" caption="Create Party Tax Profile"][/caption]

Check the appropriate boxes if you want to set the Legal Authority as a Collecting Authority or as a Reporting Authority.

Click on the ‘Tax Reporting Codes’ tab to add Tax Reporting Codes.

[caption id="" align="alignnone" width="802" caption="Create Party Tax Profile - Tax Reporting Codes"][/caption]

See Document ‘E-Business Tax Lookup Codes’ to define quickcodes for E-Business Tax.

When you are done, click on ‘Apply’.

[caption id="" align="alignnone" width="808" caption="Party Tax Profile Confirmation"][/caption]

You will receive a confirmation message that the Party Tax Profile was successfully created.

E-Business Tax Setup: Tax Configuration

Platform: R12

Tax Configuration



[caption id="" align="alignnone" width="767" caption="E-Business Tax Setup - Tax Configuration"][/caption]





Once you are done with the external dependencies, you can begin with Tax Configuration.

The checklist for tax configuration is as follows:

1. Create Tax Authorities Party Tax Profiles


2. Create Tax Regimes


3. Create First Party Legal Entity Party Tax Profile


4. Create Tax


5. Create Tax Reporting Codes


6. Create Tax Status


7. Create Tax Jurisdictions


8. Tax Recovery Rates


9. Tax Rates

Only Tax Reporting Codes and Tax Recovery Rates are optional setups.

E-Business Tax Lookup Codes

Platform: R12








ZX_INPUT_CLASSIFICATIONS                                     Used to create tax classification codes for use in tax determination. Release 11i tax codes and tax groups migrate to E-Business Tax as tax classification codes. Payables and Purchasing tax codes migrate as tax classification codes under ZX_INPUT_CLASSIFICATIONS.

ZX_OUTPUT_CLASSICATIONS                                    Release 11i Receivables and Projects tax codes migrate as tax classification codes under ZX_OUTPUT_CLASSICATIONS.

ZX_WEB_EXP_TAX_CLASSIFICATIONS                    Tax Classification Codes for Internet Expense Transactions

ZX_EXEMPTION_REASON_CODE                              Reasons for Tax Exemptions

ZX_JEBE_VAT_TRANS_TYPE                                        Tax Transaction Types to be used when setting up tax rate. Tax Rate Transaction Types represent legal authority codes

ZX_REGISTRATIONS_REASON                                    Tax Registration Reason Codes (for reporting only)

ZX_REGISTRATIONS_TYPE                                           Allows the organization of Registration Types in Categories

ZX_REGISTRATION_STATUS                                        Tax Registration Status Codes. Tax Registration Status Codes are used as determining factors in tax rules. Seeded Values are: Agent, Registered, Not Registered.

ZX_TAX_TYPE_CATEGORY                                           Tax types to classify taxes. Seeded Values are: Sales, VAT, Excise, Custom Duty, Environmental.

Shameem Bauccha

1 July 2009