How to Setup Oracle Applications R12 EBTax Module



Application Setup Document

How to setup Oracle Applications R12: EB Tax

Document Title : Oracle EbTax Setup Document

Author : Asokan Thangaraju

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Index

Introduction 4

Define Party Tax Profiles 5

Define Tax Regimes 6

Define Taxes 7

Define Tax Statuses 8

Define Tax Jurisdictions 9

Define Tax Recovery Rates 10

Define Tax Rates 11

Define Tax Rules and Defaults 12

Define Application Tax Options 13

Define Profile Options 14

Introduction

The objective of the document is to provide all the required setup steps for the Oracle Applications R12 E-Business Tax Module. The setup steps are given below and sample setup data are embedded in the Excels for each step. Ireland is used as a sample country for this setup document.

In 11.5.10 the Tax Setup was relatively easier but in Release 12 Oracle has launched a separate Central Tax Module called E-Business Tax. There is a number of setup steps required for the EB Tax module to work. These are discussed in this document with a sample setup data for Ireland.

Scope:

The intention is to refer to this document as a sample BR100 for the R12 EB Tax Module only. For the detailed Tax Module functionality or further study the reader is advised to refer the EB Tax Implementation Guide and EB Tax User Guide.

Define Party Tax Profiles

Function Id : ZX-008

Application : Oracle EBTax

Function/Screen Path : Tax Manager>Party>Party Profiles

Function/Screen Description : Use this page to define Party Tax Profiles for you Legal Entity and Operating Unit. Unless you setup the Party Tax Profile for an Operating Unit, you cannot setup the Receivable Activities in AR.

Setup the Party Tax Profiles as per the attached excels.

[pic][pic]

Note: This is the first step in Tax Setup. After we define the Party Tax Profile, we then need to attach that Party with the Tax Regime. Unless this is done, we cannot the Legal Entity or the Operating Unit as the Configuration Owner.

If we use the Legal Entity as the Configuration Owner, the tax will be visible across the instance irrespective of the Legal Entity or Operating Unit.

If we use the Operating Unit as the Configuration Owner, the tax will be visible only under the specific Operating Unit.

Define Tax Regimes

Function Id : ZX-001

Application : Oracle EBTax

Function/Screen Path : Tax Manager>Tax Configuration>Tax Regimes

Function/Screen Description :

Description: Use this form to define Tax Regimes.

Setup the Tax Regime as per the attached Excel

[pic]

Define Taxes

Function Id : ZX-002

Application : Oracle EBTax

Function/Screen Path : Tax Manager>Tax Configuration>Taxes

Function/Screen Description : Use this page to define the Taxes Required.

Setup the Taxes as per the attached Excel

[pic]

Define Tax Statuses

Function Id : ZX-003

Application : Oracle EBTax

Function/Screen Path : Tax Manager>Tax Configuration>Tax Statuses

Function/Screen Description : Use this Page to define the Tax Statuses.

Setup the Tax Statuses as per the attached Excel

[pic]

Define Tax Jurisdictions

Function Id : ZX-004

Application : Oracle EBTax

Function/Screen Path : Tax Manager>Tax Configuration>Jurisdictions

Function/Screen Description : Use this page to define Tax Jurisdictions

Setup the Tax Jurisdiction as per the attached Excel

[pic]

Define Tax Recovery Rates

Function Id : ZX-005

Application : Oracle EBTax

Function/Screen Path : Tax Manager>Tax Configuration>Tax Recovery Rates

Function/Screen Description : Use this Page to define Tax Recovery Rates for each Tax which has ‘Allow Tax Recovery’ Checkbox checked

Setup the Tax Recovery Rates as per the attached Excel.

[pic]

Define Tax Rates

Function Id : ZX-006

Application : Oracle EBTax

Function/Screen Path : Tax Manager>Tax Configuration>Tax Rates

Function/Screen Description : Use this Page to define the Tax Rates for Each Tax. The defined Tax rates are automatically also defined as Tax Classification Codes in the Application Object Library Lookup Types ZX_INPUT_CLASSIFICATIONS and ZX_OUTPUT_CLASSIFICATIONS. These Tax Classification Codes are then used as a Transaction Tax Determining factor while creating Tax Rules.

Setup the Tax Rates as per the attached Excel.

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Remove the AP Tax classification codes from ZX_OUTPUT_CLASSIFICATIONS and remove the AR tax classification codes from ZX_INPUT_CLASSIFICATIONS.

Define Tax Rules and Defaults

Function Id : ZX-007

Application : Oracle EBTax

Function/Screen Path : Tax Manager>Tax Configuration>Tax Rules

Function/Screen Description : Use this section to define the Tax Rules and the Tax Rule Defaults

Setup the Tax Rules and Defaults as per the attached Excel

[pic]

Define Application Tax Options

Function Id : ZX-009

Application : Oracle EBTax

Function/Screen Path : Tax Manager>Defaults and Controls > Application Tax Options

Function/Screen Description : Use this Screen to Create the Defaulting Rule hierarchy for the Tax Classification Codes

|Operating unit |Application |Defaulting Order1 |Defaulting Order2 |Defaulting Order3 |Defaulting |Defaulting Order5 |Tax Determination |

| | | | | |Order4 | |Method(Only for |

| | | | | | | |Receivables) |

|Operating Unit Name |Receivables |Customer Site |Product | | | |Oracle E-Business Tax |

|Operating Unit Name |Purchasing |Supplier Site |Supplier | | | | |

Define Profile Options

Function Id : ZX-009

Application : Oracle EBTax

Function/Screen Path : Profile -> System

|Profile |Site |Application |Responsibility |User |

|LOV |Char |Char |Char |Char |

| | | |IE_Tax Managers | |

|GL Ledger Name |Ledger Name | |Ledger Name | |

|MO: Operating Unit |Operating Unit Name | |Operating Unit Name | |

|Sequential Numbering |Partially Used | |Partially Used | |

|FA: Security Profile | | | | |

|HR: Business Group | | |Business Group Name | |

|HR: Security Profile | | |Business Group Name | |

|Default Country | | |Ireland | |

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