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R12.x Oracle E-Business TaxFundamentals - StudentPractices - US

Student Guide

D60095GC10

Edition 1.0

February 2011

D71934


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Copyright 2011, Oracle. All rights reserved.Disclaimer

This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy andprint this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way.Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display,perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorizationof Oracle.

The information contained in this document is subject to change without notice. If you find any problems in the document, please

report them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is notwarranted to be error-free.

Restricted Rights Notice

If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the UnitedStates Government, the following notice is applicable:

U.S. GOVERNMENT RIGHTSThe U.S. Governments rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restrictedby the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract.

Trademark Notice

Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respectiveowners.

Author

Stacey Tucker-Blosch

Technical Contributors and Reviewers

Andrea Auld, Ramasubramanian Balasundaram, Rajesh Bhatt, Nigel Chapman, Kevan Davies,Julianna Dodick, Ivy Farren, Amit K. Jain, Mary Kalway, Robert MacIssac, Nirajita Mitra, AnandNaik, Pamela Rietz, Christine Rudd, Harsh Takle, Brijesh Thakkar, Amit Vohra, KathrynWohnoutka

This book was published using: oracletutor


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Copyright Oracle, 2008. All rights reserved.

R12.x Oracle E-Business Tax Fundamentals - Student Practices - US Table of Contents

i

Table of Contents

R12.x Oracle E-Business Tax Fundamentals - Student Practices - US .......................................................1-1R12.x Oracle E-Business Tax Fundamentals - Student Practices - US ........................................................1-3

Practice - Review the Setup of the City Tax in the US-SALES-TAX-101 Regime.....................................1-4View the Tax Rules Associated with the US-SALES-TAX-101 Regime .....................................................1-8

View the Legal Entity Setup .......................................................................................................................1-10View the Setup of the US-SALES-TAX-101 Tax Regime...........................................................................1-11View the Tax Setup for the CITY Tax for the US-SALES-TAX-101 Tax Regime........................................1-12View the Setup for the STANDARD Tax Status for the CITY Tax for US-SALES-TAX-101 Tax Regime...1-13View the Setup of the CI-NY-NEW YORK-121661 Tax Jurisdiction...........................................................1-14View the Tax Rate for the STANDARD Tax Rate Code .............................................................................1-15Review .......................................................................................................................................................1-16Practice - Create a New User.....................................................................................................................1-17Practice - Create a Regime to Rate the Tax Model ...................................................................................1-20Practice Solution - Create a Regime to Rate Tax Model ...........................................................................1-21Create a Tax ..............................................................................................................................................1-23

Create a Tax Status ...................................................................................................................................1-25Create Tax Rates .......................................................................................................................................1-26Create a Tax Jurisdiction............................................................................................................................1-28Create Tax Accounts..................................................................................................................................1-29Define Defaults and Tax Rules for the Steps of the Tax Determination Process .......................................1-30Make Tax Available for Transactions .........................................................................................................1-32Test Your Tax Setup by Entering an Invoice in Payables ..........................................................................1-33Test Your Tax Setup by Entering an Invoice in Receivables......................................................................1-36Test Your Tax Setup by Entering a Purchase Order in Purchasing ...........................................................1-39Test Your Tax Setup by Entering a Sales Order in Order Management ....................................................1-41Practice - Create Determining Factor Sets................................................................................................1-43Practice Solution - Create Determining Factor Sets ...................................................................................1-44Create a Condition Set...............................................................................................................................1-45Modify the Tax Determination Steps to Use a Rule Using Your Condition Set...........................................1-46Test Your Tax Setup by Entering an Invoice in Payables ..........................................................................1-48Practice - Create Tax Zones .....................................................................................................................1-50Practice Solution - Create Tax Zones ........................................................................................................1-51

Add a New Rule to the Determine Tax Applicability Step to Make Tax Not Applicable for All Countries in YourTax Zone....................................................................................................................................................1-53Test Your Tax Setup by Entering an Invoice in Payables ..........................................................................1-55Practice - Create Customer Tax Exemptions ............................................................................................1-57Practice Solution - Create Customer Tax Exemptions ...............................................................................1-58Create a Customer Tax Exemption for a Specific Item ..............................................................................1-60Test Your Tax Setup by Entering an Invoice in Receivables......................................................................1-62

Practice - Create Product Exceptions .......................................................................................................1-65Practice Solution - Create Product Exceptions...........................................................................................1-66Test Your Tax Setup by Entering an Invoice in Receivables......................................................................1-67Test Your Tax Setup by Entering a Purchase Order in Purchasing ...........................................................1-70Practice - Create Product Fiscal Classifications........................................................................................1-72Practice Solution - Create Product Fiscal Classifications...........................................................................1-73Use Expert Rule Entry to Create a New Tax Rule to the Determine the Tax Applicability Step of the TaxDetermination Process...............................................................................................................................1-74


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Create an Inventory Item............................................................................................................................1-76Test Your Tax Setup by Entering a Purchase Order ..................................................................................1-77Practice - Create Tax Rate Rules..............................................................................................................1-79Practice Solution - Create Tax Rate Rules.................................................................................................1-80Create a Determining Factor Set................................................................................................................1-82Create a Condition Set...............................................................................................................................1-83Modify the Tax Determination Steps to Use a Rule Using Your Condition Set...........................................1-84Create an Inventory Item............................................................................................................................1-86Test Your Tax Setup by Entering a Purchase Order ..................................................................................1-88Practice - Create a Self-Assessed Tax Example.......................................................................................1-91Practice Solution - Create a Self-Assessed Tax Example.........................................................................1-92Verify That the Supplier Record Is Configured...........................................................................................1-94Test Your Tax Setup by Entering an Invoice in Payables ..........................................................................1-95Practice - Setting Up Offset Tax ................................................................................................................1-98Practice Solution - Setting Up Offset Tax...................................................................................................1-99Modify Your Tax Regime to Allow Tax Recovery .......................................................................................1-100Create an Offset Tax..................................................................................................................................1-101Create an Offset Tax Status.......................................................................................................................1-102

Create an Offset Recovery Rate and Associated Accounts .......................................................................1-103Create a Negative Offset Tax Rate ............................................................................................................1-104Make Offset Tax Available for Transactions and Specify the Recovery Rate Code ...................................1-106

Attach Offset Tax to Main Tax Rate Details ...............................................................................................1-107Create a Supplier with Offset Tax Enabled ................................................................................................1-108Test your Offset Tax by Entering an Invoice in Payables ...........................................................................1-110Practice - Run a Tax Register Report .......................................................................................................1-113Practice Solution - Run a Tax Register Report..........................................................................................1-114Practice - Run the Tax Audit Trail Report..................................................................................................1-115Practice Solution - Run the Tax Audit Trail Report .....................................................................................1-116Practice - Run a Tax Received Report ......................................................................................................1-117Practice Solution - Run a Tax Received Report ........................................................................................1-118Practice - Run the Tax Reconciliation Report............................................................................................1-119Practice Solution - Run the Tax Reconciliation Report...............................................................................1-120Practice - Create a Regime to Rate Model with Recoverable Tax (VAT) ..................................................1-121Practice Solution - Create a Regime to Rate Model with Recoverable Tax (VAT) ....................................1-122Create a Tax and Associated Tax Accounts ..............................................................................................1-124Create a Tax Status ...................................................................................................................................1-126Create a Tax Rate......................................................................................................................................1-127Create a Tax Jurisdiction............................................................................................................................1-129Create Recovery Rates and Associated Accounts.....................................................................................1-130Specify Defaults for the Steps of the Tax Determination Process ..............................................................1-131Make Tax Available for Transactions and Specify the Recovery Rate Code..............................................1-133

Test Your New Tax by Entering an Invoice in Payables.............................................................................1-134Enter an Invoice in Receivables.................................................................................................................1-136Practice - Using the Direct Tax Rate Determination ..................................................................................1-139Practice Solution - Direct Tax Rate Determination ....................................................................................1-140Create a Tax Regime .................................................................................................................................1-141Create a Tax ..............................................................................................................................................1-143Creating a Tax Status ................................................................................................................................1-145Create Tax Rate.........................................................................................................................................1-146


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Creating a Tax Jurisdiction.........................................................................................................................1-147Define Defaults and Tax Rules for the Steps of the Tax Determination Process .......................................1-148Making Tax Available for Transactions ......................................................................................................1-152Create a Supplier and Associate It with Your XXDTRTAXRATE Through the Tax Classification Code.....1-153Test Your Tax Setup by Entering an Invoice in Payables ..........................................................................1-155Practice - Processing a Transaction...........................................................................................................1-159Verify the Existing Tax Rate .......................................................................................................................1-161Create a Purchase Order on a Date with 10% Tax Rate............................................................................1-162Change the Tax Rate from 10 Percent to 11 Percent ................................................................................1-164Enter an Invoice with a Tax Rate of 11 Percent .........................................................................................1-165


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v

Preface

Profile

Before You Begin This Course

Basic knowledge of business accounting concepts.

Working experience with business tax requirements.

Thorough knowledge of Oracle Applications.

Prerequisites

Navigate Oracle Applications

R12.x Oracle E-Business Suite Essentials for Implementers

How This Course Is OrganizedThis is an instructor-led course featuring lecture and hands-on exercises. Online demonstrationsand written practice sessions reinforce the concepts and skills introduced.


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vi

Related Publications

Oracle Publications

Title Part Number

Oracle E-Business Tax Implementation Guide E13629-03

Oracle E-Business Tax User Guide E13631-03

Oracle E-Business Tax Reporting Guide E13630-03

Oracle Inventory Users Guide E13450-04

Oracle Financials for Europe Users Guide E13421-04

Oracle Financials for the Americas User Guide E13422-03

Oracle Financials for Asia/Pacific User Guide E13419-03

Additional Publications

System release bulletins

Installation and users guides

Read-me files

International Oracle Users Group (IOUG) articles

Oracle Magazine


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vii

Typographic Conventions

Typographic Conventions in Text

Convention Element Example

Bold italic Glossary term (if

there is a glossary)

The algorithminserts the new key.

Caps andlowercase

Buttons,check boxes,

triggers,

windows

Click the Executable button.Select the Cant Delete Card check box.

Assign a When-Validate-Item trigger to the ORD block.

Open the Master Schedule window.

Courier new,

case sensitive

(default is

lowercase)

Code output,

directory names,

filenames,

passwords,

pathnames,

URLs,

user input,

usernames

Code output: debug.set (I, 300);

Directory: bin(DOS), $FMHOME(UNIX)

Filename: Locate the init.orafile.

Password: User tigeras your password.

Pathname: Open c:\my_docs\projects

URL: Go to http://www.oracle.com

User input: Enter 300Username: Log on as scott

Initial cap Graphics labels

(unless the term is a

proper noun)

Customer address (butOracle Payables)

Italic Emphasized words

and phrases,

titles of books and

courses,

variables

Do notsave changes to the database.

For further information, see Oracle7 Server SQL Language

Reference Manual.

[email protected], where user_idis the

name of the user.

Quotation

marks

Interface elements

with long names

that have onlyinitial caps;

lesson and chapter

titles in cross-

references

Select Include a reusable module component and click Finish.

This subject is covered in Unit II, Lesson 3, Working withObjects.

Uppercase SQL column

names, commands,

functions, schemas,

table names

Use the SELECT command to view information stored in the

LAST_NAME

column of the EMP table.

Arrow Menu paths Select File> Save.Brackets Key names Press [Enter].

Commas Key sequences Press and release keys one at a time:

[Alternate], [F], [D]Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

Typographic Conventions in Code

Convention Element Example


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viii

Caps and

lowercase

Oracle Forms

triggers

When-Validate-Item

Lowercase Column names,

table names

SELECT last_nameFROM s_emp;

Passwords DROP USER scottIDENTIFIED BY tiger;

PL/SQL objects OG_ACTIVATE_LAYER(OG_GET_LAYER (prod_pie_layer))

Lowercase

italic

Syntax variables CREATE ROLE role

Uppercase SQL commands and

functions

SELECT useridFROM emp;

Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct youthrough Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoicethen Entrythen Invoice BatchesSummary.

2. (M) From the menu, select Querythen Find.

3. (B) Click the Approvebutton.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab

Typographical Conventions in Oracle Application Help System Paths

This course uses a navigation path convention to represent actions you perform to find

pertinent information in the Oracle Applications Help System.

The following help navigation path, for example

(Help) General Ledger > Journals > Enter Journals

represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.


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ix

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help systemwindow.


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x


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R12.x Oracle E-Business Tax Fundamentals - Student Practices - US

Chapter 1 - Page 1

R12.x Oracle E-Business TaxFundamentals - StudentPractices - US

Chapter 1


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Chapter 1 - Page 2


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Chapter 1 - Page 3



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Chapter 1 - Page 4

Practice - Review the Setup of the City Tax in the US-SALES-TAX-101Regime

Overview

Complete the steps in the solution.


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Chapter 1 - Page 5

Practice - Review the Setup of the City Tax in the US-SALES-TAX-101Regime

Create a Payables Invoice Transaction in the Tax Simulator

1. Using the URL supplied by the instructor, log into the applications with the

username/password sscnewall/welcome.

2. Select the Oracle Tax Simulatorresponsibility.

3. Navigate to the Tax Simulatorfunction.

4. Enter the following in the Transaction Lines form (T) Main:

Field Value

Application: Payables

Document Event: STANDARD INVOICES

Legal Entity: SSC US 01

Document Type: STANDARD CREATED

Operating Unit: SSC US 01

Document Date: 01-SEP-2007

Document Number: XXDEMO001 (replace XX with your studentnumber)

Document Currency: USD

Do Not Save Yet!

5. Enter the following in the Transaction Lines form (T) Party:

Field Value

Ship From Party: Advantage Corp

Bill From Party: Advantage Corp

Ship To Party: SSC US 01 - 002 SSC US OU 01 - 002

Bill To Party: SSC US 01 - 002 SSC US OU 01 - 002

Do Not Save Yet!


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Chapter 1 - Page 6

6. Enter the following in the Transaction Lines form (T) Sites:

Field Value

Ship From Party Site: US CHECK Advantage Corp

Bill From Site: US CHECK Advantage Corp

Ship From Location: 8475 Elk Grove Road New York , NY

Bill From Location: PO Box 680978 New York , NY

Ship To Location: SSC US OU 01 - 002 31 Madison Avenue NewYork New York, NY

Bill To Location: SSC US OU 01 - 002 31 Madison Avenue NewYork New York, NY

Do Not Save Yet!

7. Enter the following in the Transaction Lines form Linesregion (T) Main:

Field Value

Num: 1 (defaults)

Line Description GOODS

Quantity: 1

UOM: Each

Unit Price: 100.00

Transaction BusinessCategory:

Purchase Transaction

Account: 001.100.63580.0000.000.000.000

GL Date: 01-SEP-2007

Tax Inclusive: None

Line Level Event CREATE_WITH_TAX

8. Save your work.

Note: The tax engine is calculating the taxes.

9. Click (B) Tax Lines.

Note: It will take a few moments for the tax lines window to open.


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Chapter 1 - Page 7

10. Verify that the following three tax lines were generated:

Tax Regime Tax Jurisdiction Tax Status Rate Name RateTax

Amount

US-SALES-TAX-101

STATE ST-330000000 STANDARD STANDARD 4.250 4.25

US-SALES-TAX-101

COUNTY CO-NY-NEWYORK-121660

STANDARD STANDARD .000 .00

US-SALES-TAX-101

CITY CI-NY-NEWYORK-121661

STANDARD STANDARD 4.250 4.25

Note: Dependent on the setups in the Vision demonstration environment, additional taxesmay be calculated on the transaction.

11. Place your cursor on the first line (CITY Sales Tax) and click (B) Tax Rules.

12. Verify that tax rules were applied as shown in the following table:

ResultType

ProcessName

Tax RuleName

RulePriority

Determining FactorTemplate

Name

Condition

GroupName

Result

Default DeterminePlace ofSupply

SHIP_TO

RuleBased

DetermineTaxApplicability

US CITYTAX 101SHIP FROM/ SHIP TOUS

10 US SALESCITY TAX 2

US SALESCITY TAX2

Default

Default DetermineTaxRegistration

Default

Default DetermineTaxableBasis

STANDARD_TB

Default CalculateTax Amounts

STANDARD_TC

13. Close the Rules form.

14. Click (B) Cancelin the Detail Tax Lines form.

15. Close the Transaction Lines form.16. Switch responsibilities to Tax Managers SSC US 01.


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Chapter 1 - Page 8

View the Tax Rules Associated with the US-SALES-TAX-101 Regime

To identify the results of the city tax, the following are the steps to view the tax rules associatedwith the steps of the Tax Determination process.

1. Using the Tax Managers, SSC US 01responsibility, navigate to Tax Rules.

(N)Tax ConfigurationTax Rules

2. Enter the following in the Tax Rules Search region:

Field Value

Configuration Owner: Global Configuration Owner

Tax Regime Code: US-SALES-TAX-101

Tax: CITY

3. Click (B) Go.

Note: You should see the following table of steps/rule types which are being applied todetermine if the CITY tax in the US-SALES-TAX-101 regime is applicable to a transaction.

Rule Type Default Explanation

Direct TaxRateDetermination

Direct Tax Rate Determination rules are utilized for datamigrated from 11i where tax classification codes are used.There are no Direct Tax Rate Determination rules for theUS-SALES-TAX-101 tax regime.

DeterminePlace ofSupply

Ship to, usebill to if shipto is notfound

This step is executed to determine the location atransaction is considered to have taken place for aspecific tax. For our transaction, the Ship To Location wasMadison Avenue, New York, New York.

DetermineTaxApplicability

NotApplicable

This step determines the taxes that apply to a giventransaction. In our case, this step utilizes two rules, whichyou can view by clicking the + sign to expand the rule

type.The first rule, with precedence 10, is US CITY TAX 101-BILL/SHIP US. If you click this link, you can see that thisrule has a condition associated with it, indicating that if theShip From and Ship To countries are both the UnitedStates, the rule will return a result of Applicable.

Since the conditions of the first rule were met by ourtransaction (the Ship From and Ship To locations wereboth in the United States), the second rule, withprecedence 20, is never even evaluated. Also, thesecond rule is not enabled.

DetermineTaxRegistration

The Determine Tax Registration step determines the taxregistration of the party responsible for payment of thetaxes.

DetermineTax Status

STANDARD This step determines the tax status of each applicable taxon the transaction. In this case, the step has a defaultresult of STANDARD (indicating the STANDARD taxstatus), and no rules, indicating that the STANDARD taxstatus for the US-SALES-TAX-101 regime and CITY tax


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Chapter 1 - Page 9

Rule Type Default Explanation

will be used.

DetermineTax Rate

STANDARD This step determines the tax status of each applicable taxon the transaction. In this case, the step has a defaultresult of STANDARD (indicating the STANDARD taxstatus), and no rules, indicating that the STANDARD tax

status for the US-SALES-TAX-101 regime and CITY taxwill be used.

DetermineTaxableBasis

STANDARD_TB

This step determines the amount on which to apply thetax rate. In this instance, the step has a default result ofSTANDARD_TB. This is seeded data indicating that thedefault tax basis is the standard default tax basis.

CalculateTaxAmounts

STANDARD_TC

This step has a default result of STANDARD_TC, aseeded value indicating a standard tax calculation, whichwould be a taxable amount * percentage.

DetermineRecoveryRate

This step is not relevant because the CITY tax in the US-SALES-TAX-101 tax regime is not a recoverable tax.


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Chapter 1 - Page 10

View the Legal Entity Setup

Overview

The following steps will walk you through the setup of the legal entities for our company in orderto determine what taxes would be applicable for those legal entities.

Tasks1. Using the Tax Managers, SSC US 01responsibility, navigate to (T) Parties(ST) Party

Tax Profiles.

2. In the Party Tax Profiles Search page, enter the following:

Field Value

Party Type: First Party Legal Entity (defaults)

Party Name: SSC US 01

3. Click (B) Go.

4. Click (I) Update Tax Profilefor the First Party Legal Entity Party Type.

5. In the Update Party Tax Profile page, select the (T) Configuration Options.Note: The US-SALES-TAX-101 tax regime has been identified as being part of the taxconfiguration for this legal entity, meaning that any rules associated with that tax regime willbe evaluated whenever an AP invoice is entered with SSC US 01 as the legal entity (in thecase of our invoice, the Ship To, as referenced in the Determine Place of Supply stepdefault value).

6. Click (B) Cancelto return to the Party Tax Profiles page.


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Chapter 1 - Page 11

View the Setup of the US-SALES-TAX-101 Tax Regime

In Oracle E-Business Tax, a Tax Regime is the system of regulation for the determination andadministration of one or more taxes.

1. Using the Tax Managers, SSC US 01 responsibility, navigate to (T) Tax Configuration(ST) Tax Regimes.

2. Enter the following in the Tax Regimes Search page:

Field Value

Regime Level: Country (defaults)

Country Name: United States


3. Click (B) Go.

4. Click (I) Updatefor the US-SALES-TAX-101 regime.

Main Details Page Note: The tax regime name is US-SALES-TAX-STATE-COUNTY-CITY. The tax regime code and tax regime name are just two separate identifiers for thesame object.

5. Click the + sign to expand the Show Controls and Defaults region.

Controls and Defaults region Note that Allow Tax Recovery is deselected and that AllowTax Exceptions and Allow Tax Exemptions are selected.

6. Click (B) Continuein the Main Details page.

Configuration Options Page Note: SSC US 01: First Party Legal Entity and VisionOperations Operating Unit owning Tax Content have both been identified as parties subjectto taxes associated with the US-SALES-TAX-101 tax regime.

7. Click (B) Finishin the Configuration Options page.


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Chapter 1 - Page 12

View the Tax Setup for the CITY Tax for the US-SALES-TAX-101 TaxRegime

A Tax is a distinct charge imposed by a government through a fiscal or tax authority. Every taxin Oracle E-Business Tax is defined under a tax regime.

1. Using the Tax Managers, SSC US 01 responsibility, navigate to (T) Tax Configuration(ST) Taxes.

2. Enter the following in the Taxes Search page:

Field Value

Regime Level: Country (defaults)



Tax: CITY

3. Click (B) Go.

Note: Tax value is CITY and the Name value is CITY, two different names for the same

object.4. Click (I) Updateon the CITY tax row.

Main Information page Note: The Tax is Available for Transactions and the Tax Type isset to Location.

5. In the Main Information page, click (B) Tax Accounts.

6. In the Update Tax Accounts page, click (I) Update Tax Accountsfor the SSC USLedger/SSC US 01 Operating Unit.

Update the Tax Accounts page Note: There can be default accounts defined to capturetax expense (for AP invoices) and tax liability (for AR invoices) for this particular CITY tax.These may not be set up in the demo environment; however this is where it would be setup.

7. In the Update Tax Accounts page, click (B) Cancelto return to the Tax Accounts page.8. In the Tax Accounts page, click (B) Cancelto return to the Update Tax page.

9. In the Update Tax page, click (B) Cancelto return to the Taxes Search page.


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Chapter 1 - Page 13

View the Setup for the STANDARD Tax Status for the CITY Tax for US-SALES-TAX-101 Tax Regime

1. Using the Tax Managers, SSC US 01 responsibility, navigate to (T) Tax Configuration(ST) Tax Statuses.

2. Enter the following in the Taxes Statuses Search page:

Field ValueRegime Level: Country (defaults)



Tax Status Code: STANDARD

Tax: CITY

3. Click (B) Go.

4. Select the STANDARDstatus:

Update Tax Status page Note: The Set as Default Tax Status check box is checked.

This setting causes the STANDARD tax status to default as the result for the DetermineTax Status step in the tax rules for this tax regime and tax.

Default Controls region Verify that the Allow Tax Exceptions and Allow Tax Exemptionsfields are both selected.

5. Select the link to return to Tax Statuses.

6. View the Tax Rate for the STANDARD Tax Rate Code


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Chapter 1 - Page 14

View the Setup of the CI-NY-NEW YORK-121661 Tax Jurisdiction

1. Using the Tax Managers, SSC US 01responsibility, navigate to (T) Tax Configuration(ST) Tax Jurisdictions.

2. Enter the following in the Tax Jurisdictions Search page:

Field Value

Tax Jurisdiction Code: CI-NY-NEW YORK-121661

3. Click (B) Go.

4. Click (I) Update.

Update the Tax Jurisdiction page Note: The jurisdiction is effective from 01-Jan-1952 until31-Dec-4712. Remember, the Tax Jurisdiction Code and Tax Jurisdiction Name are twonames for the same thing, and in our demo environment we used the same value in bothplaces.

5. In the Update Tax Jurisdiction page, click (B) Cancelto return to the Tax JurisdictionsSearch page.


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Chapter 1 - Page 15

View the Tax Rate for the STANDARD Tax Rate Code

1. Using the Tax Managers, SSC US 01 responsibility, navigate to (T) Tax Configuration(ST) Tax Rates.

2. Enter the following in the Tax Rates Search page:

Field Value

Regime Level: Country



Tax Rate Code: STANDARD

Tax: CITY

Tax Jurisdiction: CI-NY-NEW YORK-121661

3. Click (B) Go.

4. Select the STANDARDrate link

Update Tax Rate page Note: Tax Rate is 4.25 percent, effective from 01-Nov-1992 to 31-Dec-2199.

5. (I)View Rate Details.

Update the Tax Rate Details page Note: The 4.25 tax rate is set as the default rate,effective from 01-Nov-1992 to 31-Dec-2199. Also, Tax Exemptions and Tax Exceptions areboth allowed.

6. Select the Tax Configuration: Tax Rates link to return to the Tax Rates page.

7. In the Update Tax Rate page, click (B) Cancelto return to the Tax Rates search page.

8. Log out of the applications as sscnewall.


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Chapter 1 - Page 16

Review

Your AP transaction was created in the SSC US 01 legal entity. Its tax configurationspecifies that taxes in the US-SALES-TAX-101 regime are applicable.

The tax rules evaluate which of the taxes in that regime are applicable.

CITY tax is applicable only if the Ship To and Ship From are in the United States.

The tax rules specify that the STANDARD tax status is the default.

The tax rules specify that the STANDARD tax rate is the one to use.

The definition of the STANDARD tax rate for the STANDARD tax status for the CITY taxfor the US-SALES-TAX-101 tax regime specifies the tax rate is 4.25% for the 01-Nov-1992 to 31-Dec-2199 time frame.


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Chapter 1 - Page 17

Practice - Create a New User

Overview



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Chapter 1 - Page 18

Practice - Create a New User

Tasks

Sign on

Field Value

User Name OPERATIONS

Password welcome

Responsibility System Administrator

Add a User

1. Navigate to the Define User window.

(N) Security : User > Define

2. Enter your user information:

Field ValueUser Name: XXTAXUSER

Password: Welcome (must type this twice)

Description XXTAXUSER

Password Expiration None

Person Stock, Ms. Pat


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Chapter 1 - Page 19

Add Responsibilities

3. Add the following responsibilities to your new username:

Responsibility Security Group

Tax Managers SSC US 01 Standard

Oracle Tax Simulator Standard

Legal Entity Manager Standard

Payables, SSC US OU 01 Standard

Receivables, SSC US OU 01 Standard

Purchasing, SSC US OU 01 Standard

Order Management, SSC US OU 01 Standard

Tax Managers Vision UK Standard

Payables Vision UK Standard

Receivables Vision UK Standard

System Administrator Standard

General Ledger, SSC US Standard

General Ledger, Vision UK Standard

(I) Save

Close Form.

Log in as New User

4. Exit Oracle Applications.

(L) Logout

5. Log back into the system with your newly created User ID and password.


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Chapter 1 - Page 20

Practice - Create a Regime to Rate the Tax Model

Overview



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Chapter 1 - Page 21

Practice Solution - Create a Regime to Rate Tax Model

Create a Tax Regime

1. Log into applications. Select the Tax Managers SSC US 01responsibility.

2. Navigate to the Create Tax Regime: Main Details page:

(N) Tax ConfigurationTax Regimes

Click (B) Create.

3. Enter a new tax regime based on the following information:

Field Value

Tax Regime Code XXUSSALESTAXREGIME

Name XX US Sales Tax Regime

Regime Level Country

Country Name United States

Parent Regime Code BlankEffective From 01-JAN-1950

Effective To Leave Blank

Used to group Regimes Deselected

4. Expand the Controls and Defaults region:

(H) Show Controls and Defaults

5. Enter Tax Regime Controls:

Field Value

Allow Tax Recovery Deselected

Allow Override and Entry ofInclusive Tax Lines

Deselected

Allow Tax Exemptions Selected

Allow Tax Exceptions Selected


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Chapter 1 - Page 22

6. Enter Tax Regime Defaults:

Field Value

Tax Currency USD

Minimum Accountable Unit 0.01

Rounding Rule Nearest

Tax Precision 2 (default)

7. Navigate to Create Tax Regime: Configuration Options page:

Click (B) Continue.

8. Enter tax regime configuration options:

Field Value

Party Name SSC US 01

Note: Select the FirstParty Legal Entity partytype.

Configuration for Taxes and Rules Common Configuration

Effective From 01-JAN-1950

Effective To Leave blank

Note: Configuration options are discussed in the Configuration Owners and ServiceProviders module.

9. Click (B) Finishto complete the Tax Regime Setup.

10. Verify that you receive the following confirmation, The tax regime was successfullycreated.


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Chapter 1 - Page 23

Create a Tax

1. Navigate to the Create Tax page:

(T) Tax Configuration(ST) Tax Regimes

Search for the Tax Regime you created in the preceding step.

Field Value



Click (B) Go.

Click (I) Regime to Rate Flow.

Click (I) Create Taxon the Regime Level Type row.

2. Create a new tax based on the following information:

Field Value

Tax Regime Code XXUSSALESTAXREGIME(default)

Configuration Owner Global ConfigurationOwner

Tax Source Create a new tax (default)

Tax XXUSSALESTAX

Tax Name XX US Sales Tax

Tax Type SALES

Effective From 01-JAN-1950 (default)


Geography Type STATE

Parent Geography Type COUNTRY

Parent Geography Name United States

Tax Currency USD (default)

Minimum Accountable Unit 0.01 (default)

Rounding Rule Nearest (default)

Tax Precision 2 (default)

Exchange Rate Type Blank


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Chapter 1 - Page 24

3. Navigate to the Controls and Defaults region:

Click (H) Show Controls and Defaults

4. Enter Tax Controls:

Field Value

Allow Override and Entry of

Inclusive Tax Lines

Deselected

Allow Tax Rounding Override Deselected

Allow Override for Calculated TaxLines

Selected

Allow Entry of Manual Tax Lines Selected

Use Legal Registration Number Deselected

Allow Duplicate Tax RegistrationNumbers

Deselected

Allow Multiple Jurisdictions Deselected

Tax Accounts Creation Method Create Tax Accounts(default)

Allow Tax Exceptions Selected (default)

Allow Tax Exemptions Selected (default)

Tax Exemptions Creation Method Create Tax Exemptions(default)

Allow Tax Rate Rules Selected

Note: The Allow Tax Exceptions and Allow Tax Exemptions fields defaulted to Yes from thesetup of the Tax Regime in which you are creating your Tax.

Click (B) Apply.(The system returns you to the Regime to Rate Flow page.) Verify that you receive the following confirmation, The Tax has been successfully

created.


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Chapter 1 - Page 25

Create a Tax Status

1. Navigate to the Create Tax Status page (from the Regime to Rate Flow page):

Click (H) Expand All.

Click (I) Create Tax Status(on Tax Level Type row).

2. Create a new tax status based on the following information:

Field ValueTax Regime Code XXUSSALESTAXREGIME

(default)

Configuration Owner Global ConfigurationOwner (default)

Tax XXUSSALESTAX (default)

Tax Status Code XXUSSALESSTDSTATUS

Name XX US Sales TaxStandard Status



Set as Default Tax Status Selected

Default Status Effective From 01-JAN-1950

Default Status Effective To Leave Blank



Note: The Allow Tax Exceptions and Allow Tax Exemptions fields defaulted to Yes from thesetup of the Tax for which you are creating a Tax Status.

3. Apply the tax status setup:

Click (B) Applyto return to the Regime to Rate Flow page.

Verify that you receive the following confirmation, The tax status was successfullycreated.


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Chapter 1 - Page 26

Create Tax Rates

1. Navigate to the Create Tax Rate page (from the Regime to Rate Flow page):

Click (H) Expand All.

Click (I) Create Tax Rate(on Status Level Type row).

2. Create a new tax rate based on the following information:

Field ValueTax Regime Code XXUSSALESTAXREGIM

E (default)

Configuration Owner Global ConfigurationOwner (default)

Tax XXUSSALESTAX(default)

Tax Status Code XXUSSALESSTDSTATUS (default)

Tax Jurisdiction Code Blank

Tax Rate Code XXUSSALESTAXRATE

Rate Type Percentage (default)

Percentage Rate 10


Effective From Leave blank

3. Navigate to the Rate Details page:

Click (I) Rate Details.

4. Enter tax rate details:

Field Value

Tax Rate Name XX US Sales Tax Rate

Tax Rate Description XX US Sales Tax Rate

Internet Expenses Enabled Selected

Set as Default Rate Selected

Default Effective From 01-JAN-1950

Default Effective To Leave blank



Note: The Allow Tax Exceptions and Allow Tax Exemptions fields defaulted to Yes from thesetup of the Tax Regime and Tax for which you are creating a Tax Rate.

5. Select (B)Apply to return to the Create Tax Rate page.

6. Select (I) Tax Accounts.

7. Enter the Ledger:

Field Value: Ledger SSC US


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Chapter 1 - Page 27

Select (B) Create.

8. Enter tax accounts based on the following information:

Field Value Operating Unit SSC US 01

Tax Expense 001.100.63920.0000.730.000.000

Tax Recoverable/Liability 001.100.25300.0000.730.000.000

Select (B) Apply to return to the Tax Rates Accounts page.

9. Select (B) Apply to return to the Create Tax rate page

Select (B) Apply to return to the Regime to Rate Flow Page

11. Verify that you received the following confirmation :"The Tax Rate has been successfullycreated."


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Chapter 1 - Page 28

Create a Tax Jurisdiction

1. Navigate to the Create Tax Jurisdiction page:

(T) Tax Configuration(ST) Tax Jurisdictions.

Click (B) Create.

2. Create a new tax jurisdiction based on the following information:

Field ValueTax Jurisdiction Code XXTAXJURISDICTION

Tax Jurisdiction Name XX Tax Jurisdiction


Tax XXUSSALESTAX

Geography Type STATE (pick from list!)

Parent Geography Type COUNTRY (default)

Parent Geography Name United States (default)


Effective To Leave Blank

Geography Name NY

Precedence Level 300 (default)

Collecting Tax Authority Blank

Reporting Tax Authority Blank

Set as default Tax Jurisdiction Yes

Default Effective From 01-JAN-1950

Default Effective To Leave blank

3. Apply the tax status setup:

Click (B) Applyto return to the Tax Jurisdictions page.

4. Verify that you receive the following confirmation, The tax jurisdiction was successfullycreated.


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Chapter 1 - Page 29

Create Tax Accounts

1. Navigate to the Tax Accounts page from the Taxes page:

(T) Tax Configuration(ST) Taxes

2. Search for the Tax you created in the Practice: Create a Regime to Rate the Tax Model.

Field Value



Tax XXUSSALESTAX

Click (B) Go.

Click (I) Updateon the Tax row.

3. Navigate to the Tax Accounts page:

Click (B) Tax Accounts.

4. Enter the Ledger:

Field Value

Ledger SSC US

Click (B) Create.

5. Enter tax accounts based on the following information:

Field Value

Operating Unit SSC US 01

Tax Expense 001.100.63920.0000.730.000.000

Tax Recoverable/Liability 001.100.25300.0000.730.000.000

Click (B) Applyto return to the Tax Accounts page.

Click (B) Applyto return to the Update Tax page. Click (B) Applyto return to the Taxes page.

6. Verify that you receive the following confirmation, The tax was successfully updated.


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Chapter 1 - Page 30

Define Defaults and Tax Rules for the Steps of the Tax DeterminationProcess

1. Navigate to the Tax Rules page:

(T) Tax Configuration(ST) Tax Rules

2. Access the rule types for your tax regime and tax created in the Practice: Create a Regimeto Rate the Tax Model.

Field Value



Tax XXUSSALESTAX

Click (B) Go.

Click (H) Expand All.(The system displays the nine steps/rule types of the taxdetermination process.)

Determine Place of Supply (I) Set Default

Field Value

Rule Type Default Ship To (pick from list!)

Click (B) Apply.

Determine Tax Applicability (I) Set Default

Field Value

Rule Type Default Applicable (pick from list!)

Click (B) Apply.

Determine Tax Registration (I) Set Default

Field Value

Rule Type Default Bill From Party (pick fromlist!)

Click (B) Apply.

Determine Tax Status

Field Value

Rule Type Default XXUSSALESTDSTATUS(default)

Note: You do not have to define a default value for tax status because when you created

your XXUSSALESSTD tax status, you specified that it was to be used as the default valuefor tax status in any tax rules.

Determine Tax Rate

Field Value

Rule Type Default XXUSSALESTAXRATE


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Chapter 1 - Page 31

Note: You do not have to define a default value for tax rate because when you created yourXXUSSALESTAXRATE tax rate, you specified that it was to be used as the default valuefor tax rate in any tax rules.

Determine Taxable Basis (I) Set Default

Field Value

Rule Type Default STANDARD_TB (pick

from list)

Click (B) Apply.

Note: STANDARD_TB is a seeded value that indicates the standard taxable basis.

Calculate Tax Amounts (I) Set Default

Field US Sales and Use Tax

Rule Type Default STANDARD_TC (pickfrom list

Click (B) Apply.

Note: STANDARD_TC is a seeded value that indicates the standard tax calculation, which

is taxable basis * tax rate.Note: You do not have to enter defaults for Direct Tax Determination or for Tax RecoveryRate because they are not relevant for your Tax Regime and Tax. You did not allowrecovery for your XXUSSALESTAX tax.


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Chapter 1 - Page 32

Make Tax Available for Transactions

1. Navigate to the Taxes page:

(T) Tax Configuration(ST) Taxes

2. Search for the Tax you created in the Practice: Create a Regime to Rate the Tax Model.




Tax XXUSSALESTAX

Click (B) Go.

Click (I) Updateon the XXUSSALESTAX row.

3. Make the tax available for transactions:


Make Tax Available forTransactions

Selected

Click (B) Apply(Displays the warning Warning: This tax does not have an exchangerate type. Are you sure you want to enable this tax?)

Click (B) Yes.

4. Verify that you receive the following confirmation, The tax was successfully updated.

5. Click (H) Close Windowto return to the Navigator.


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Chapter 1 - Page 33

Test Your Tax Setup by Entering an Invoice in Payables

Note: In order to be able to run the Create Accounting Process in Payables for your invoice, theaccounting period must be open in Accounts Payable and in General Ledger.

To open the accounting Period in Accounts Payable, use the Payables, SSC US OU 01responsibility to navigate to Setup Calendar Accounting Accounting Periods. Query forthe current period and change its status to Open.

To open the accounting period in General Ledger, use the General Ledger, SSC USresponsibility to navigate to Setup Open/Close and click (B) Find in the Find window. Click(B) Open Period and enter the current period as the target period and click (B) OK. You will beasked if you are sure. Click (B) OK. This opens all periods in General Ledger between the lastpreviously opened period and the target period.

Tasks

1. Using the Payables, SSC US OU 01responsibility, navigate to the Invoices form.

(N) Invoices EntryInvoices

2. Enter a standard invoice based on the following header information:

Field Value

Operating Unit SSC US 01 (default)

Type Standard (default)

Trading Partner Advantage Corp.

Supplier Site US CHECK

Invoice Date Instructor Assigned.

Invoice Number XXAPTAXTEST001

Currency USD (default)

Invoice Amount 1155.00

GL Date (default)

Payment Method Electronic

3. Accept all other defaults.

Note: Do Not Save!!

4. Navigate to the Lines region.

(ST) 2 Lines.


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Chapter 1 - Page 34

5. Enter invoice line information based on the following:

Field Value

Line 1 (default)

Type Item (default)

Amount 1000.00

Distribution Account 001.100.63580.0000.730.000.000

Description XX TEST 001

GL Date (default)

Business Category Purchase Transaction

Product Type GOODS

Ship To SSC US OU 01 002 (default)

6. Save your invoice.

Click (I) Save.

7. Calculate the Tax.

Click (B) Calculate Tax.

Note: You may see other Tax Regimes tax as well as your own. In order to validate yourinvoice, you must adjust the invoice total to be equal to the sum of the distributions,including your line for 1000.00 and the total of all taxes that are applied.

8. Verify that the tax calculation process applied your XXUSSALESTAX tax for 100.00 (10percent of the 1000.00 line amount).

9. With your cursor on the line for your XXUSSALESTAXREGIME, navigate to the Tax Detailswindow.

Click (B) Tax Details.

10. Verify that you see the following information for your tax in the Tax Details window:

Field Value

Tax Regime Code: XXUSSALESTAXREGIME

Tax: XXUSSALESTAX

Jurisdiction: XXTAXJURISDICTION

Tax Status: XXUSSALESTDSTATUS

Rate Name: XXUSSALESTAXRATE

Rate: 10.000

Tax Amount: 100.00

11. Close the Tax Details window.

Click (B) Cancel.

12. Click (T) 1 Generalin the bottom of the Invoice workbench screen, and then navigate to theActions screen.

Click (B) Actions 1.


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Chapter 1 - Page 35

13. Validate your invoice:

Check the Validatecheck box.

Click (B) OK.

Note: If your invoice does not validate because the distributions are not equal to the invoiceamount, adjust the invoice amount to match and re-run the validation process.

14. Navigate to the Actions window.

Click (B) Actions.

15. Create accounting on the invoice:

Check the Create Accountingcheck box.

Select the Final Postbutton.

Click (B) OK.

16. Verify that you receive the following message, Accounting has been successfully createdfor this transaction.

17. Click (M) ReportsView Accounting.

18. In the Subledger Journal Entry Lines screen, verify that you see (as a minimum) thefollowing accounting (you may see additional accounting lines, depending on taxes applied

to your transaction):

Account GL DateAccounting

ClassAccounted

DRAccounted

CR

001.100.63580.0000.730.000.000 Yourdate

ItemExpense

1000.00

001.200.22100.0000.000.000.000 Yourdate

Liability 1000.00

001.100.63920.0000.730.000.000 Yourdate

Non-recoverabletax

100.00

001.200.22100.0000.000.000.000 Yourdate

Liability 100.00

19. Close the Invoice Workbench form.


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Chapter 1 - Page 36

Test Your Tax Setup by Entering an Invoice in Receivables

Note: In order to be able to run the Create Accounting Process for Receivables, the accountingperiod must be open both in Accounts Receivable and in General Ledger.

To open the Accounting period in Accounts Receivable, using the Receivables, SSC US OU 01responsibility, navigate to Control Accounting Open/Close Periods. Click (B) Open NextPeriod until the Latest Open period changes to the current period.

To open the accounting period in General Ledger, use the General Ledger, SSC USresponsibility to navigate to Setup Open/Close and click (B) Find in the Find window. Click(B) Open Period and enter the current period as the target period and click (B) OK. You will beasked if you are sure. Click (B) OK. This opens all periods in General Ledger between the lastpreviously opened period and the target period.

1. Using the Receivables, SSC US OU 01responsibility, navigate to the Transactions form.

(N) TransactionsTransactions

2. Enter a customer invoice based on the following header information:

Field Value

Source Manual-Other (default)

Date Instructor Assigned

GL Date Instructor Assigned

Class Invoice (default)

Currency USD (default)

Type Invoice (default)

Legal Entity SSC OU 01 (default)

3. Navigate to the Main region.

(ST) Main

4. Enter Ship To information:Field Value

Ship To ABC Application Software

(be sure to use the New Yorkaddress)

5. Enter payment terms of 2/10, Net 30(normally this information defaults from the customerrecord).


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Chapter 1 - Page 37

6. Navigate to Main region of the Line Items page.

Click (B) Line Items.

(ST) Main


Field Value

Num 1

Description XXTAXTEST001

UOM Each

Quantity 1

Unit Price 1000.00


Click (I) Save.

9. Navigate to the Tax page.

Click (B) Tax.

10. Verify that you see the following information about your tax.

Field Value

Tax Regime Code: XXUSSALESTAXREGIME

Tax: XXUSSALESTAX

Jurisdiction: XXTAXJURISDICTION

Tax Status: XXUSSALESTDSTATUS

Rate Name: XXUSSALESTAXRATE

Rate: 10.000

Tax Amount: 100.00

11. Close the Detail Tax Lines window.

Click (B) Cancel.

12. Close the Lines window.

13. Change the invoice status to Complete.

Click (B) Complete.

14. Generate the accounting for the Receivables invoice:

Select (M) ToolsCreate Accounting.

15. In the Create Accounting window, select Create Final Accounting Post to GL.

Click (B) OK.16. Verify that you receive the following message, Accounting has been successfully created

for this transaction.

Click (B) OKto acknowledge message.

17. View the accounting by selecting (M) ToolsView Accounting.

18. In the Subledger Journal Entries window, verify that you see the following at a minimum(additional lines may have been created depending on the taxes applied to yourtransaction).


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Chapter 1 - Page 38

AccountGL

DateAccounting

ClassAccounted

DRAccounted

CR

001.100.12100.0000.000.000.000 Yourdate

Receivable 1100.00

001.100.41000.0000.425.000.000 Yourdate

Revenue 1000.00

001.100.25300.0000.000.000.000 Yourdate

Tax 100.00

19. The Receivable and Revenue accounts were determined from AutoAccounting setup in theAccounts Receivable module. The Tax account is derived from the tax account setup foryour XXUSSALESTAX tax, if that is the way AutoAccounting is defined.

Note: You can override the tax calculation and enter manual tax lines on invoices if youselected the Allow Override for Calculated Tax Lines and Allow Manual Entry of Tax Linesoptions at the Tax level.

20. Click (H) Close Windowto return to the Transactions form.

21. Close the Transactions form.


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Chapter 1 - Page 39

Test Your Tax Setup by Entering a Purchase Order in Purchasing

Note: In order to open an accounting period in Purchasing, using the Purchasing, SSC US OU01 responsibility to navigate to Setup/Financials/Accounting/Control Purchasing Periods.

To open the accounting period in General Ledger, use the General Ledger, SSC USresponsibility to navigate to Setup Open/Close and click (B) Find in the Find window. Click(B) Open Period and enter the current period as the target period and click (B) OK. You will be

asked if you are sure. Click (B) OK. This opens all periods in General Ledger between the lastpreviously opened period and the target period.

1. Using the Purchasing, SSC US OU 01responsibility, navigate to the Purchase Order form.

(N) Purchase OrdersPurchase Orders

2. Select (M) ToolsPreferencesto set your session preferences.

3. In the Purchase Order Preferences form, enter:

Field Value

Charge Account 001.100.63580.0000.000.000.000

Click (B) Apply.

Verify that you receive the message, New Preferences now in effect.

Close the Purchase Order Preferences screen.

4. In the Purchase Orders screen, enter a purchase order:

Field Value


Type Standard PurchaseOrder (default)

Supplier Advantage Corp.

Site US CHECK

Ship To SSC US OU 01 002

Bill To SSC US OU 01 - 002


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Chapter 1 - Page 40

5. In the Lines region, enter:

Field Value

Num 1 (default)

Type Goods (default)

Category MISC.MISC

Description Copy Paper

UOM Each

Quantity 1

Price 100.00

Promised Today + 1 day

6. Click (I) Saveto save your purchase order.

7. Navigate to (M) ActionsManage Tax.

8. In the Tax: Standard Purchase Order XXX screen, click (H) Showin the Details region forline 1 of your purchase order.

9. Verify that you see the following for your tax.

Field Value


Tax XXUSSALESTAX

Tax Status Code XXUSSALESSTDSTAUS

Tax Jurisdiction Code XXTAXJURISDICTION

Tax Rate Code XXUSSALESTAXRATE

Percentage Rate 10

Tax Amount 10

10. You may also see taxes from other students in the class.

11. Click (H) Close Windowto return to the purchase order form.

12. Close the purchase order form.


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Chapter 1 - Page 41

Test Your Tax Setup by Entering a Sales Order in Order Management

1. Using theOrder Management, SSC US OU 01responsibility, navigate to the Sales Orderform.

(N) Orders, Returns Sales Orders

2. In the Sales Orders form, enter:

Field Value

Customer ABC ApplicationSoftware (verify that the536 Madison Avenue,New York, NY addressdefaults

Order Type SSC US OU 01 Order

3. Click the (T) Line Itemstab.

4. In the Line Items tab, enter:

Field Value

Ordered Item P0110

Qty 1

UOM Ea

Unit Selling Price 100.00 (default)

5. Click the (B) Actions.

6. Select Calculate Taxfrom the list of values.

7. In the Line Itemstab, click the (ST) Pricing subtab.

8. Scroll across in the pricing subtab and verify that the tax amount appears as 18.50.(Additional tax may have been calculated depending upon the tax settings on the instance.)

9. Click the (B) Actions.

10. Select View Tax Details.


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Chapter 1 - Page 42

11. In the Tax Details screen, verify that you see the following:

Tax Regime Tax Tax Status Tax RateCode

Rate Amount

XXUSSALESTAXREGIME XXUSSALESTAX XXUSSALES

STDSTATUS

XXUSSALES

TAXSTDRATE

10 XXussalestaxregim= 10.00

US-SALES-TAX-101 STATE STANDARD STANDARD 4.25 US-SALES-TAX-101 State = 4.25

US-SALES-TAX-101 COUNTY STANDARD STANDARD 0 US-Sales-TAX-10County = 0.00

US-SALES-TAX-101 CITY STANDARD STANDARD 4.25 US-SALES-TAX-101 City = 4.25

(Additional tax may have been calculated depending upon the tax settings on the instance).


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Chapter 1 - Page 43

Practice - Create Determining Factor Sets

Overview



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Chapter 1 - Page 44

Practice Solution - Create Determining Factor Sets

Create a Determining Factor Set

1. Log into applications using your login.

2. Select the Tax Managers, SSC US 01responsibility.

3. Navigate to the Tax Determining Factor Setup page:

(N) Advanced Setup OptionsTax Determining Factor Sets

Click (B) Create.

Enter the following information:

Field Value

Tax Determining Factor Set XXSHIPTOSHIPFROM

Name XX Ship To Ship FromCountry

Set Usage Tax Rules (default)

Ledger SSC US

Regime Code XXUSSALESTAXREGIME

Determining Factor Class Geography

Class Qualifier Ship to

Determining Factor Name Country

Enter a 2ndLine:

Determining Factor Class Geography

Class Qualifier Ship From

Determining Factor Name Country

4. Click (B) Apply.

5. Verify that you receive the following confirmation, The tax determining factor set wassuccessfully created.


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Chapter 1 - Page 45

Create a Condition Set

1. Navigate to the Condition Set page.

(T) Advanced Setup Options(ST) Tax Condition Sets

Click (B) Create.

Enter the following information:

Field ValueTax Condition Set XXUSSHIPTOFRANCESHIPFROM

Name XX US Ship to/France Ship From

Determining Factor Set XXSHIPTOSHIPFROM

Click (B) Continue.

2. In the Create Tax conditions window, enter:

Field Value

Ship From Operator Equal To

Ship From Value/FromRange France

Ship To Operator Equal To

Ship To Value/From Range United States

Click (B) Finishto return to the Tax Condition Sets page.

3. Verify that you receive the following confirmation, The tax condition set was successfullycreated.


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Chapter 1 - Page 46

Modify the Tax Determination Steps to Use a Rule Using YourCondition Set

1. Navigate to the Rules page.

(T) Tax Configuration(ST) Tax Rules

2. In the Tax Rules search region, enter:

Field Value

Configuration Owner Global Configuration Owner


Tax XXUSSALESTAX

Click (B) Go.

3. Select the (I) Expert Rule Entryfor the Determine Tax Applicability Rule Type.

4. In the Create Tax Rule: General Information page, enter:

Field Value

Tax Law Reference XXTAXLAWUS/FRANCE

Description XXUSSALESTAX not applicable whenship from is FRANCE.

Rule Code XXUSSHIPTOFRANCESHIPFROMNA

Rule Name XX Tax Not app. When US shipto/France Ship From



Determining Factor

Set Code

XXSHIPTOSHIPFROM

Click (B) Nextin the Step 1 of 3 page.

5. In the Create Tax Rule: Rule Conditions page, enter:

Field Value

Condition Set Code XXUSSHIPTOFRANCESHIPFROM

Name XX US Ship to/France Ship From(default)

Order 1

Result Not Applicable

Click (B) Nextin the Step 2 of 3 page.

6. In the Create Tax Rule: Rule Order page, enter

Field Value

Enable YES!!!! CHECK THIS BOX!!

Rule Order 1


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Chapter 1 - Page 47

Click (B) Finishin the Step 3 of 3 page.

7. Verify that you receive the following confirmation, The tax rule was successfully created.

8. Click (H) Hometo return to the Navigator.


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Chapter 1 - Page 48

Test Your Tax Setup by Entering an Invoice in Payables

Note: In order to be able to run the Create Accounting Process in Payables for your invoice, theaccounting period must be open in Accounts Payable and in General Ledger.

To open the accounting Period in Accounts Payable, navigate to Setup Calendar Accounting Accounting Periods, query for the current period, and change its status to Open.

To open the accounting period in General Ledger, navigate to Setup Open/Close and click

(B) Find in the Find window. Click (B) Open Period and enter the current period as the targetperiod and click (B) OK. You will be asked if you are sure. Click (B) OK. This opens all periodsin General Ledger between the last previously opened period and the target period.

Tasks

1. Using the Payables, SSC US OU 01responsibility, navigate to the Invoices form.

(N) InvoicesEntryInvoices

2. Enter a standard invoice based on the following header information:

Field Value


Type Standard (default)

Trading Partner Advantage Corp

Supplier Site FR CHECK!!!!

Invoice Date Instructor Assigned

Invoice Number XXAPTAXTESTFRSHIPFROM001

Currency EUR (default)

Invoice Amount 1000.00

GL Date Instructor Assigned (default)

Payment Method Electronic

3. Accept all other defaults.

Note: Do notsave!!

4. Navigate to the Lines region.

(ST) 2 Lines


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Chapter 1 - Page 49


Field Value

Line 1 (default)

Type Item (default)

Amount 1000.00


Description Office Supplies


Click (I) Save.

7. Calculate the Tax


8. Verify that your XXUSSALESTAX tax is not applied. The tax rule you created specifies thetax is notapplicable when the Ship From country is France.

9. Close the Invoice Workbench to return to the Navigator.


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Chapter 1 - Page 50

Practice - Create Tax Zones

Overview



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Chapter 1 - Page 51

Practice Solution - Create Tax Zones

Tasks

In this practice you will create a Tax Zone for the countries in the EU.

Creating a Tax Zone Type

1. Log into applications. Select the Tax Managers SSC US 01responsibility.2. Navigate to the Tax Zone Types page.

(N) Advanced Setup Options > Tax Zone Types

(B) Create Tax Zone Type

3. Create a tax zone type based on the following information:

Field Value

Tax Zone Type XXEUTAXZONETYPE

Country Blank

Zone Creation Allowed Yes

(B) Apply (The system returns you to the Tax Zone Types search page.)

Creating a Tax Zone

4. Navigate to the Tax Zone page.

XXEUTAXZONETYPE > (I) View Existing Zones

(B) Create Tax Zone

5. Create a tax zone based on the following information:

Field Value

Tax Zone XXEUTAXZONE

Code XX EU Not applicableTax Zone

Code Type Tax Geography Code

Start Date 01-JAN-1950

End Date Blank

Time Zone Blank

6. Select countries to add to the tax zone:

Field Value

Add All (B) Go

Field Value

Country Name Italy

(I) Quick Select

Field Value


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Chapter 1 - Page 52

Add All

(B) Go

Field Value

Country Name United Kingdom

(I) Quick Select

Change the dates to 01-Jan-1950.

(B) Apply

7. Verify that you receive a confirmation message This Tax Zone has been created:XXEUTAXZONE.


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Chapter 1 - Page 53

Add a New Rule to the Determine Tax Applicability Step to Make TaxNot Applicable for All Countries in Your Tax Zone.

1. Go to Tax Configuration/Tax Rules.

2. In the Tax Rules Search screen, enter:

Field Value



Tax XXUSSALESTAX

Click (B) Go.

3. Select (I) Guided rule entry iconon the Determine Tax Applicability step.

4. In the Create Tax Rule: General Information screen, click the + sign for Tax Law Details.

5. In the Create Tax Rule: General Information screen, enter the following:

Field Value

Tax Law Reference: XXNAEUTAXZONE

Description: XX Not applicable EU Tax Zone

Use the tax lawreference

Selected


This rule applies toall transactions:

Selected

6. Click the (B) Nextbutton in the Step 1 of 5 screen.

7. In the Create Tax Rule: Determining Factors and Conditions screen, in the Transaction tab,in the Locations region, enter the following:

Field Value

Location Type: Ship From

Geography Type: XXEUTAXZONETYPE

Operator: Equal To

Value: XXEUTAXZONE


9. In the Create Tax Rule: Condition Results, select Not Applicablein the Applicable tax field.


11. In the Create Tax Rule: Rule Order screen, enter the following for XXEUNATTAXZONE:

Field Value


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Enable Yes!!!! Select this box!!

Rule Order 2


13. In the Create Tax Rule: Rule Sets screen, enter:

Field Value

Determining Factor Set XXTAXZONE

Name XX Tax Zone

Condition Set XXEUNATAXZONE

Name XXEUNATAXZONE

14. Click (B) Finishin the Step 5 of 5 screen.

15. Verify that you receive confirmation that the rule was successfully created.


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Field Value

Line 1 (defaults)

Type Item (defaults)

Amount 1000.00


Description Office Supplies


Click (I) Save.

7. Calculate the Tax.


8. Verify that your XXUSSALESTAX tax is not applied. The tax rule you created specifies thetax is notapplicable when the Ship From country belongs to the XXEUTAXZONE.

9. Close the Invoice Workbench to return to the Navigator.


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Chapter 1 - Page 57

Practice - Create Customer Tax Exemptions

Overview



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Practice Solution - Create Customer Tax Exemptions

Create a Customer

Overview

In this lab, you will create a customer tax exemption for a specific customer for a specific item

for which the customer is tax-exempt.

Tasks

1. Using the Receivables, SSC US 01 responsibility, navigate to the Customer Creation page.

(N) CustomersCreate/MaintainCustomers

Click (B) Createin the Customers screen.

2. In the Create Organization page, enter the following:

Field Value

Organization Name XXCUSTOMER

Address Line 1 540 Madison Avenue

City New York

County New York

State NY

Postal Code 10022

Operating Unit SSC US 01 (Defaults)

3. Scroll down to the Business Purposes region and click the Primary flag next to the Bill toBusiness Purpose.

4. Click (B) Save and Add Details. After the save is completed, you should be returned tothe Update Account screen.

5. In the update Account screen, click (I) Detailsin the Account Sites region.

6. In the Site: XXXX screen, click the (T) Business Purposes.

7. In the Business Purposes tab, note that a Bill to Business Purpose has been created for theNew York address with a location number and has been identified as the primary Bill To.

8. Click the (B) Add Another Rowin the Business Purposes tab.


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9. Enter the following:

Field Value

Purpose Ship To

Bill to Location Choose the location ID of theBill to location

Primary Selected

10. Click (B) Save.

11. Verify that you receive the confirmation message, Your changes have been saved.

12. Click the (B) Details button for the Bill To Site Usage.

13. In the Account Site Purpose: Bill To screen, scroll down and enter Alan Richardsas thesalesperson in the Site Use Details region.

14. Click (B) Applyto return to the Site screen.

15. Click (B) Applyto return to the Update Account screen.

16. Click (B) Applyto return to the Customers screen.

17. Verify that you receive a message that your changes have been saved.


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Chapter 1 - Page 60

Create a Customer Tax Exemption for a Specific Item

Tasks

1. Using theTax Managers, SSC US 01 responsibility, navigate to the Party Tax Profilespage.

(N) Parties -> Party Tax Profiles

2. Search for your

ebiztax sg practice us

Documents