AIMBR.100 Setup document<EBusiness Tax >

Author: <IMPLEMENTER>Creation Date: January 20, 2012Last Updated: January 29, 2012Document Ref: <Document Reference Number> Version: 1.0Location: C:\Users\Public\Documents\Whitepapers\EBT\Oracle EBTax Setup Document BR100 .docx

1.

Title, Subject, Last Updated Date, Reference Number, and Version are marked by a Word Bookmark so that they can be easily reproduced in the header and footer of documents.  When you change any of these values, be careful not to accidentally delete the bookmark.  You can make bookmarks visible by selecting Tools->Options…View and checking the Bookmarks option in the Show region.

Approvals:

< >

< >

1.

To add additional approval lines, press [Tab] from the last cell in the table above.

Copy Number_____1.

You can delete any elements of this cover page that you do not need for your document.  For example, Copy Number is only required if this is a controlled document and you need to track each copy that you distribute.

ContentsGeography Structure DefinitionGeography ValidationsLoading Geography / Compile Geographies - HR_LOCATIONS & HZ LOCATIONS – Loads into SystemDefine Class Categories & Codes for Fiscal ClassificationsDefine Item TypeDefine Inventory CategoryDefine Inventory Category SetDefine Tax authorityDefine Tax Authority Party Tax ProfileDefine Tax RegimeTax Regime – Party SubscriptionsSelf Assessment – First Party Legal EstablishmentApplication Tax optionsDefine Product ClassificationsDefine User Item TypeDefine Product Categoryunder Product Classifications Update>Create

Define Party Fiscal ClassificationsCountry Defaults for USDefine Configuration Owner Tax Options - Enable Taxes for PO Event Types and Disable for AR EventsEnable Configuration Owner OptionsOpen and Closed Issues for this Deliverable

Open IssuesClosed Issues

1.

To update the table of contents, put the cursor anywhere in the table and press [F9].  To change the number of levels displayed, select the menu option Insert >Index and Tables, make sure the Table of Contents tab is active, and change the Number of Levels to a new value.

Geography Structure DefinitionUse the geographic settings in E-Business Tax to define the taxes and tax rates at each geographic level in your countries of operation. E-Business Tax uses the TCA master geography hierarchy to determine the relationships between countries and the territories and geographical regions within a country that belong to them.This is the first Step that needs to be done as part of the EBTax Setup in R12Navigate to Trading Community Manager Responsibility. The below screenshot shows the navigation

> >In Trading Community Manager (TCM)>Geography HierarchyClick | Next Page

Geography Validations

For example, the structure for the United States is defined in this way: Country is the parent of State, State is the parent of County, County is the parent of City, and City is the parent of Postal Code. E-Business Tax uses this structure to help determine the taxes and tax rates that apply to each geographic entity within the United States. In this way, a sales transaction that takes place in a city may include taxes at the state, county, and city level.

Click | Manage Valiadtions

Manage Validations

Mapping Locations – Looks for these 3 values.This Option shows only warning while entering supplier State Country and City details even though they doesn’t exist in TCAHZ is third parties (Vendors)HR is receiving company (Internal locations)

Mapping LocationsInternal Locations

Delete

Loading Geography / Compile Geographies - HR_LOCATIONS & HZ LOCATIONS – Loads into SystemOracle Apps – Tax Manager>View>Request>Submit Request>Request Set

RUN for HR locations also.

System would not let new location have tax validations if this is not run after location is added.

Define Class Categories & Codes for Fiscal ClassificationsTake screen print of request IDs created during this step.Location: TCMCreate Class Category

Define Item TypeInventory Responsibilities>Setup Items>Item TypesSave ater each code.

Can copy and paste between fields.

Click on Icon for new record

Addresses Catalog Items.

Define Inventory CategoryCreate a Inventory Category Code with the following detailsInventory>Setup>Items>Categories>Category CodesFor Non-CatalogFind Category: Non%Copy and paste from EBSD to new Instance

Save.

Define Inventory Category SetInventory>Setup>Items>Categories>Categories Set

Define Tax authorityUse the Oracle Legal Entity Manager to set up each tax authority as a legal authority for transaction tax.

Set up a tax profile for each of your tax authority party records. The tax authority party tax profile identifies a tax authority party as a collecting authority and/or a reporting authority. A collecting tax authority manages the administration of tax remittances. A reporting tax authority receives and processes all company transaction tax reports.

Location:  Legal Entity Manager>Setup>Legal AuthoritiesSystem Generated – will not be the same

The collecting and reporting tax authorities appear in the corresponding list of values on all applicable E-Business Tax pages. All tax authorities are available in the list of values as an issuing tax authority.

Define Tax Authority Party Tax ProfileTax Manager>Parties>Party Tax Profiles

Define Tax RegimeTax Manager>Tax Config>Tax Regimes>Create

Uncheck

Tax Regime – Party Subscriptions

What is a Tax Regime?  In Oracle E-Business Tax, a Tax Regime is the system of regulations for the determination and administration of one or more taxes.

The common tax regime setup is one tax regime per country per tax type, with the tax requirements administered by a government tax authority for the entire country. There are also cases where tax regimes are defined for standard geographical types or subdivisions of a country, such as a state, province, county, or city. In these cases, you base the tax regime on the Trading Community Architecture (TCA) standard geography.

Self Assessment – First Party Legal Establishment

Tax Manager>Parties>Party Tax Profiles>Update Tax Profile

Check

Go to Tax Registration, click on Create, and complete Issuing Tax Authority

Application Tax options Tax Manager>Defaults & Controls>Application Tax Options>Update

Must Be Blank

Must Be Blank

Define Product Classifications Tax Manager>Products>Product Classifications

Case Sensitive

Set up party fiscal classifications for the parties and party sites involved in your transactions that have a tax requirement. A party fiscal classification determines, for example, when taxes apply to a party, how much tax applies, and what percentage of the tax is recoverable. These tax requirements are usually defined by the tax authority for the taxes of a given tax regime.

Set up party fiscal classifications for your first parties, customers and customer sites, and suppliers and supplier sites. Update the legal classification tax usage of legal activity codes according to your tax determination and tax reporting requirements.

Define User Item TypeTax Manager>Products>Product Classifications

Set up product fiscal classifications to classify products that have a tax requirement for tax determination or tax reporting purposes. You set up product fiscal classifications according to the taxable nature of a product or product transaction, as designated by a tax authority.

Define an Inventory-based product fiscal classification type against an Oracle Inventory category set. The product fiscal classification is defaulted on the transaction line for any item that belongs to the inventory category set. The category values defined for the inventory category set become fiscal classification codes belonging to the product fiscal classification type.

Define Product Category under Product Classifications Update>Create

Define product fiscal classification types using the non-Inventory based E-Business Tax product category. You can designate a default product fiscal classification for a specific product, or a list of product fiscal classifications assigned to a particular country. Use the E-Business Tax product category to:

Classify products for taxes if you do not use Oracle Inventory.Create country-specific product fiscal classifications.Create product fiscal classifications for items that are not a good.

Create ad hoc product fiscal classifications without reference to an inventory item, for example, if you are making product purchases that are not a part of your standard business processes.

Define Party Fiscal ClassificationsParty fiscal classifications: Classify your customers and suppliers and their locations for use in tax determination. In some countries, the tax authority provides the specific party fiscal classification to use.

Country Defaults for USTax Manager>Defaults & Controls>Country Defaults

Set up information at the country level that you want to default to the applicable E-Business Tax and legal entity setups. Country default controls let you designate transaction tax-related values in the countries that you do business. You can update these default values on the applicable pages.

The list of values in the country default control fields each contain all of the values that you have previously set up. For tax regimes and taxes, the list of values is restricted to the country-specific values. You should ensure that you have completed all of your applicable setup before setting country default controls.

Define Configuration Owner Tax Options - Enable Taxes for PO Event Types and Disable for AR EventsDO THESE NEXT STEPS LAST

Disabled all 11.5.7 COTO’s and Enabled R12 COTO’s on October 19, 2009 @ 11.20 AM

Set up configuration owner tax options for a combination of configuration owner and application event class. You can update some of the E-Business Tax predefined event class settings for a particular configuration owner. You can also update migrated tax option settings for configuration owners migrated from Release 11i.

If you are using Direct Tax Rate Determination with tax classification codes and migrated tax data, then you must set up configuration owner tax options using the STCC regime determination set for the applicable configuration owner and event class.

Configuration owner tax options let a configuration owner update default tax options on transactions that belong to a specific application event class. At transaction time, E-Business Tax uses the tax option settings of the configuration owner and application event class instead of the default settings.

Enable Configuration Owner Options

This is a screen shot of one of the enabled taxes in R12.  In this area we checked the box for “Make Tax Available for Transactions.”  This was done for all tax setups.

Open and Closed Issues for this Deliverable1.

Add open issues that you identify while writing or reviewing this document to the open issues section.  As you resolve issues, move them to the closed issues section and keep the issue ID the same.  Include an explanation of the resolution.

When this deliverable is complete, any open issues should be transferred to the project- or process-level Risk and Issue Log (PJM.CR.040) and managed using a project-level Risk and Issue Form (PJM.CR.040).  In addition, the open items should remain in the open issues section of this deliverable, but flagged in the resolution column as being transferred.

Open Issues

ID

Issue

Resolution

Responsibility

Target Date

Impact Date

Closed Issues

ID

Issue

Resolution

Responsibility

Target Date

Impact Date