AQ - Oracle Payables and EBTax Setup

1. Was the Include Tax check box replaced in the Release 12? The feature of having an invoice amount inclusive of tax is very much available in R12 EBTax, only the setup has been changed. While creating a regime and at rate!"T"# levels, in the controls area you $ill see a dropdo$n called %llo$ Tax &nclusion $ith ' options(
)tandard &nclusive *andling + The price on the transaction line is inclusive of tax. )tandard ,on+&nclusive *andling + The price on the transaction line is exclusive of tax. The tax amount is added to the price. )pecial &nclusive *andling + -se this option for special tax handling, such as a taxable base amount based upon the line amount rather than the ad.usted line amount, or based on the line amount plus another tax amount. ,ote( &f you do not set standard inclusive handling for the taxes in this tax regime, you can still set this option for individual parties involved in transactions. 2. From where does the tax classification code default on the invoice ine? &n R12, tax gets calculated in %" or %R $or/bench on the basis of set up in EBTax. The moment you save a transaction, tax gets defaulted provided you have the correct corresponding set up in EBTax. With respect to associating tax classification code at the supplier site level( 0&f applicable, enter the default tax classification code to use as a determining factor in tax rules for this party or party site. E+Business Tax defaults a tax classification code to the transaction line according to the application tax options defaulting hierarchy defined for the combination of operating unit and application.0 !. "hould the Tax #mount field be populated in the $eneral tab? When you enter the re1uired information at the general invoice and line level in %", depending upon your set up and tax applicability, tax $ould automatically get defaulted the moment you clic/ the 2alculate Tax button. &f you are manually entering the tax amount then this $ill obviously not be the expected behavior. Before validating the invoice please see the tax details as to $hether tax information is getting displayed there or not. %lso in case of self assessed tax , tax information is not sho$ed at the header level, but only at the distributions level. %. &ow to avoid tax of bein' created for Frei'ht lines? EBTax arrives at applicable the taxes, based on the locations involved in the transactions. &t does not give any special treatment to a freight line unless the user explicitly defines a rule to that effect. The rules can be defined for each tax. This is because there are certain taxes + even $ithin the same country + for $hich tax may be applicable for freight, $hile for others it may not be applicable. 3ou can try achieving your ob.ective by creation of Rule. (. What determines which tax re'ime will appear in the )* of Tax "imulator? We may have various reasons for Tax Regime availability in 456. %s regards, your 1uery for your specific Tax Regime not appearing in the )tandard &nvoice, you may chec/ the follo$ing settings. 1# 2hec/ the country and geographical region in the transaction and the Tax regimes. 2# 2hec/ the configuration options and third party service subscriptions settings.

'# 2hec/ the %llo$ Entry of 7anual Tax 4ines options in 2onfiguration 5$ner Tax 5ptions and Regime to Rate flo$. +. Wh, the offset taxes are not available in the )* for tax lines? &deally the offset tax should get defaulted on the transaction if you have proper set up. But if $ant to manually enter the offset tax line then you should be able to do it at the tax details. -. What.s the correct wa, to enter tax lines manuall,? 2oncept $ise both are the same. 5nly if you select the transaction at the header level and clic/ on tax details button and enter any details then it $ill treated as summary tax lines. But if you do the same from the line level then it $ill be ta/en as individual tax lines. 5ther$ise it does not ma/e a difference if you manually enter the tax details at the line level or at the tax details level. /. Is it possible to not have a default tax for 0a,ables or to ensure no tax is calculated for 0a,ables transactions? &f you do not $ant any Tax for %", you can achieve this by creating Rules.&n EBTax various factors are available through $hich you can determine tax applicability for %" transactions. 8e$ suggestions are to select specific transactions only option for Rule applicability and choose "ayables Event 2lass or use 4ine 2lass 8actor in 9etermine Tax %pplicability Rule Type. 3ou can ma/e your Tax ,ot %pplicable by default for specific %" transactions but no tax $ill be applied on selected %" transactions and you need to ma/e further Rules to ma/e Tax applicable to any specific nature of transaction. if you don:t $ant tax to be applicable for %,3 %" transactions then there is a simple $ay out. &n EBTax navigate to 9efaults and controls( 2onfiguration o$ner Tax options. ,o$ 1uery for %pplication name as payables and Even 2lass as &nvoice. &f there is an already existing set up then 1uery it or if it returns no values then clic/ on create. &n the page that opens, scroll do$n to the other field and there on the right side you can see a flag called 0%llo$ Tax %pplicability0. -nchec/ it. ,ote( This tax $ill not get calculated for any of your %" transactions. 1. Is there an, alternative to load "ales Tax rates for 2" in R12? -) )ales ; -se Tax &mport program is the only $ay of loading the content. These are the only ' programs that you have to run in order to load the data( a# E+Business Tax 2ontent -pload 8ile 4oad "rogram b# E+Business Tax 2ontent -pload "rocess 9ata "rogram c# E+Business Tax 2ontent -pload "ost "rocessing "rogram 13.&ow to create records in the 4x5part,5tax5profile table? There is no data load program to upload party tax profiles, navigate to "arties+< "arty Tax "rofile. &n the drop do$n you $ill see various attributes li/e legal entity, Third party!site etc. &f you enter any data for 4egal Establishment then it should get displayed in the party tax profile tables. 11. Is it possible to make a tax 6ot #pplicable7 but still be able to enter a tax line manuall,? &n R12 also you can manually enter the tax depending on your business re1uirement.

3ou can try any of the follo$ing t$o options( 1. 2onfiguration 5$ner Tax 5ption+ 7a/e Tax not applicable for %" &nvoice. 5r 2. Tax Rule for 9etermine Tax %pplicability+ 7a/e Tax ,ot applicable for %" &nvoice. 3ou also need to chec/!do the set up as belo$ in Regime to Rate flo$ for your Tax and 2onfiguration 5$ner Tax 5ptions for %" &nvoice( +%llo$ 5verride and Entry of &nclusive Tax 4ine +%llo$ Entry of 7anual Tax 4ines Tax level# +%llo$ 5verride for 2alculated Tax 4ines Tax level# +%llo$ Tax Rate 5verride Tax )tatus level# 5nce this set up is done, you can go and ma/e manual tax lines in Tax 9etails screen. 3ou can ma/e manual tax lines in %" &nvoice + R12 also even if the Tax is not applicable as created by you in Rules. 12. &ow to proceed when the 8#llow Tax Rate )verride8 fla' is protected? "lease understand the concept of defaults and controls first. %t the Regime level $hatever fields come under 02ontrols0 $ill be carried for$ard at the subse1uent level Tax, )tatus etc# only if they are chec/ed at the regime itself. &n your case in order for the 0%llo$ Tax Rate 5verride0 to be active at the status level, please first chec/ 0%llo$ 5verride and Entry of &nclusive Tax 4ines0 at the regime level. Then chec/ the 0%llo$ 5verride for 2alculated Tax 4ines0 at the Tax level. ,o$ the 0%llo$ Tax Rate 5verride0 $ill be enabled at the )tatus level. 3ou can refer the follo$ing pages from the -ser =uide+Release 12 to understand the functionality( 2reate Tax. 2hec/ the )et as 5ffset Tax box if you are creating an offset tax. )etting this option disables the 2ontrols and 9efaults region and clears any values that $ere entered in this region. 2reate Tax )tatus. 9o not chec/ the %llo$ Tax Rate 5verride box if this tax status is for offset taxes. 1!. Wh, the s,stem looks for setup even if #llow Tax #pplicabilit, 9 6)? &n %" $or/bench $hen $e press calculate tax, %" calls EBTax $hich in turn calculate taxes. EBTax internally sees if tax is applicable or not and returns the resultant values. &f at the 2onfiguration 5$ner Tax 5ption level Tax is set as not applicable then, the tax engine $ill not return any values. 1%. &ow to update emplo,ee t,pe supplier site for tax exemption? 8irstly, for Employee Type suppliers, $e don:t allo$ the creation of "arty )ites addresses#. %s such the address for employee type supplier is maintained only in *R records. This is not allo$ed due to various legal reasons. )econdly for Third "arties )upplier Type#, $e don:t have Exemption options in "T". &t is only available for Third "arties 2ustomer Type#. 1(. &ow to make the s,stem calculate onl, the taxes from the re'ime code7 which the supplier is re'istered. -se Tax applicability rule for the Tax based on Registration )tatus. To be specific( Tax 1( 7a/e tax %pplicable by default in Tax Rule Rule Type+ 9etermine Tax %pplicability#.

7a/e tax ,ot %pplicable based on "arty Registration )tatus for the Tax Regime!Tax. Tax 2( 7a/e tax ,ot %pplicable by default in Tax Rule Rule Type+ 9etermine Tax %pplicability#. 7a/e tax %pplicable based on "arty Registration )tatus for the Tax Regime!Tax. 1+. Is it possible to have specific transactions 6)T to be taxed e.'. 0repa,ment Invoices7 :xpense Report Invoices or Frei'ht and ;isc ine T,pes? 1# 8or the exceptions, 3ou can use 2onfiguration 5$ner Tax 5ption to ma/e Tax not %pplicable for + "repayment &nvoice Type and Expense Report &nvoice Type. & suggest to create Rules of ,on %pplicability in 9irect Tax Rate 9etermination Rule Type based on user defined fiscal classification for + &nvoice 4ine Types( 8reight and 7iscellaneous and selected invoice lines that are non+taxable. "lease note user $ill have to manually provide classification in the transaction for such lines. 2# 6erify the set up in 2onfiguration 5$ner Tax 5ption for "repayment and Expense Report Event 2lass as regards options of %llo$ Tax %pplicability and Regime 9etermination )et. '# %s regard system profile for 7iscellaneous type is concerned, as suggested above you may create a rule based on user defined fiscal classification. 1-. &ow to manuall, override or ad<ust the tax amount in the #0 invoice distributions? 3ou can also change the Tax %mount in Tax 9etails )creen of %" &nvoice. "lease chec/ your %llo$ 5verride for 2alculated Tax 4ines chec/box. 1/. What is the fla' 8:nable Tax to be #pplicable8 used for? &ow to enable it? There are 2 flags for migrated taxes. 4&6E>85R>"R52E))&,=>84%= and 4&6E>85R>%""4&2%B&4&T3>84%=. 4&6E>85R>%""4&2%B&4&T3>84%= is the Enable Tax to be Applicable flag. This flag is not visible for other upgraded or ne$ly created taxes $here by default they are set to 3 in bac/ end. *o$ever for migrated -)E T%?E) and migrated 452%T&5, T%? it is set to , as they are not calculated. %s in 11i, -)E taxes are not visible on the %" $or/bench but as are displayed in the -)E T%? 4&%B&4&T3 RE"5RT. %lso during migration of location based %R taxes in addition to )T%TE, 25-,T3 and 2&T3 tax, a dummy 452%T&5, T%? is also created for rule transactional input factor rule evaluation of other ' taxes. 4&6E>85R>"R52E))&,=>84%= is the Make live for transactions flag $hich comes as chec/ed for upgraded taxes. 8or ne$ly created taxes this has to be explicitly chec/ed. The flag cannot be and should not be enabled. 11. Wh, isn.t it possible to select a Tax to create a manual tax line? "lease perform the follo$ing chec/s( + 1# Ensure that Allow override and entry of manual tax lines is chec/ed at the tax ! Rate level 2# &f you are giving the tax .urisdiction then ensure that there is a tax rate under that .urisdiction. 23. &ow to use the tax rate defined for the tax <urisdiction? % tax .urisdiction tax rate is a rate that is distinct to a specific geographic region for a specific tax. =enerally, the default tax rate for Tax @urisdiction should be pic/ed for tax calculation in

case you are providing the concerned Tax @urisdiction in the transaction. The .urisdiction that applies to a transaction line is further dependent on the place of supply. The place of supply is the location $here a transaction is determined to ta/e place for a specific tax and $ill be dependent on the determine "lace of )upply Rule. &f you are not getting the tax .urisdiction specific tax rate in the transaction, & suggest you to again chec/ the set up for the Tax @urisdiction and associated Tax Rate chec/ you have default rate for the tax .urisdiction# based on above note. "lease also note that E+Business Tax evaluates, in order of priority, the tax rules that have defined against the tax configuration setup and the details on the transaction. 3our defaults $ill be considered only $hen you do not have any valid Rule for the transaction.