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Posts Tagged ‘Tax Configuration’

Tax Configuration: Create Tax

Posted by shameemakhtar on October 3, 2009


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.

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Posted in E-Business Tax, Financials, Oracle Apps | Tagged: , , , , | 1 Comment »

Tax Configuration: Complete First Party Legal Entity Party Tax Profile

Posted by shameemakhtar on October 3, 2009


Platform: R12

Tax Manager –> Parties –> Party Tax Profiles

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

Search First Party Legal Entity - Tax Profile

Search First Party Legal Entity - Tax Profile

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

Party Tax Profiles

Party Tax Profiles

Click on ‘Update Tax Profile’.

Update Party Tax Profile - Main

Update Party Tax Profile

Configure the four sections as appropriate:

–          Main:

Party Tax Profile - Main

Party Tax Profile - Main

–          Classifications

Party Tax Profile - Classifications

Party Tax Profile - Classifications

–          Tax Reporting Codes

Party Tax Profile - Tax Reporting Codes

Party Tax Profile - Tax Reporting Codes

–          Configuration Options

Party Tax Profile - Configuration Option

Party Tax Profile - Configuration Option

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

Shameem Bauccha

1 July 2009

Posted in E-Business Tax, Financials, Oracle Apps | Tagged: , , , , , , , , , | 4 Comments »

Tax Configuration: Create Tax Regimes

Posted by shameemakhtar on October 3, 2009


Platform: R12

Create Tax Regimes
Tax Manager –> Tax Configuration –> Tax Regimes

TaxRegimes

TaxRegimes

Click on ‘Create’.

Tax Regime - Main Details

Tax Regime - Main Details

Expand the ‘Controls and Defaults’ Region and Configure.

Tax Regime Controls and Defaults

Tax Regime Controls and Defaults

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.

Tax Regime Compounding Level Controls

Tax Regime Compounding Level Controls

When you are done, click on ‘Continue’.

Create Tax Regime - Configuration Option

Create Tax Regime - Configuration Option

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.

Service Subscriptions

Service Subscriptions

When you are done, click on ‘Finish’.

Tax Regime Creation Confirmation

Tax Regime Creation Confirmation

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

Search Tax Regime

Search Tax Regime

Shameem Bauccha

1 July 2009

Posted in E-Business Tax, Financials, Oracle Apps | Tagged: , , , , , , , , , , , | 7 Comments »

Tax Configuration: Create Tax Authority Party Tax Profiles

Posted by shameemakhtar on July 20, 2009


Platform: R12

Create Tax Authorities Party Tax Profile

Tax Manager –> Tax Configuration –> Tax Authorities Party Tax Profiles

Party Tax Profiles

Party Tax Profiles

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.

Create Party Tax Profile

Create Party Tax Profile

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.

Create  Party Tax Profile - Tax Reporting Codes

Create Party Tax Profile - Tax Reporting Codes

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

When you are done, click on ‘Apply’.

Party Tax Profile Confirmation

Party Tax Profile Confirmation

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

Posted in E-Business Tax, Financials, Oracle Apps | Tagged: , , , , , , | 4 Comments »

E-Business Tax Setup: Tax Configuration

Posted by shameemakhtar on July 20, 2009


Platform: R12

Tax Configuration

E-Business Tax Setup - Tax Configuration

E-Business Tax Setup - Tax Configuration

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.

Posted in E-Business Tax, Financials, Oracle Apps | Tagged: , , , , , | 2 Comments »