how to create a basic setup configuration of eb tax in purchasing

3/17/2016 Document 562809.1

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How To Create A Basic Setup Configuration Of EBTax In Purchasing And Test It InPurchase Order Documents? (Doc ID 562809.1)

Modified: 25Feb2015 Type: HOWTO

In this Document

GoalSolution CREATE REGIME

CREATE TAX CREATE TAX STATUS CREATE TAX JURISDICTIONS

CREATE RATE CREATE TAX RULES MAKE TAX AVAILABLE FOR TRANSACTION

APPLIES TO:

Oracle Purchasing Version 12.0 to 12.2.4 [Release 12 to 12.2]Information in this document applies to any platform.

GOAL

This document has the purpose to help users to create and test a basic setup for a Sales tax applied in a purchaseorder using EBTax functionality.Process start creating the regime, tax, tax status, jurisdiction, rate, tax rules and finish making the Tax Available ForTransactions. Then, create a standard purchase order in Oracle Purchasing to be sure the tax is calculated properly.Note that this configuration is for testing purposes and is not intended to replace any EBTax configuration manual oruser's guide.

SOLUTION

CREATE REGIME

Go to Tax Administrator Responsibility > Tax Regimes > Create

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Main Details

Field Value

Tax Regime Code NAME US REGIME

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Name NAME US REGIME

Regime Level Country

Country Name United States

Effective From 01Apr2008

Parent Regime Code

Used To Group Regimes No

Click on Show Controls And Defaults

Default and Control Level Details

Field Value

Allow Tax Recovery No

Allow Override and Entry of Inclusive Tax Lines Yes

Allow Tax Exemptions Yes

Allow Tax Exceptions Yes

Tax Currency USD

Minimum Accountable Unit 0.01

Rounding Rule Nearest

Tax Precision 2

Allow Multiple Jurisdictions No

Exchange Rate Type

Reporting Tax Authority

Collecting Tax Authority

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Click on Continue button

Field Value

Party Name Vision Operations – Operating Unit

Configuration for Tax & Rules Common Configuration

Configuration for Products Exception Common Configuration


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Click on Finish

CREATE TAX

Click on Taxes > Create

Field Value


Configuration Owner Global Configuration Owner

Tax Source Create a New Tax

Tax NAME US TAX

Tax Name NAME US TAX

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Tax Type Sales

Geography Type State

Parent Geography Type Country

Parent Geography Name United States

Set as Offset Tax No

Set for Reporting Purpose only No

Click on Show Controls And Defaults

Field Value

Allow Tax Inclusion

Allow Override and Entry of Inclusive Tax Lines Yes

Allow Tax Rounding Override Yes

Allow Override for Calculated Tax Lines Yes

Use Legal Registration Number No

Allow Duplicate Tax Registration Number No

Allow Multiple Jurisdictions Yes

Allow Mass Create of Jurisdictions Yes

Allow Tax rate Rules Yes

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CREATE TAX STATUS

Field Value

Tax Regime NAME US REGIME

Tax NAME US TAX

Tax Status Code NAME US STATUS

Name NAME US STATUS


Set as Default Tax Status Yes

Default Status Effective From 01Apr2008

Click on Apply button

CREATE TAX JURISDICTIONS

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Field Value

Tax Jurisdiction Code NAME US JURISDICTION

Name NAME US JURISDICTION


Tax NAME US TAX

Geography Name CA


Set as Default Jurisdiction Yes


Click on Apply button

CREATE RATE

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Field Value



Tax NAME US TAX

Tax Status Code NAME US STATUS

Tax Rate Code NAME US RATE

Tax Jurisdiction Code NAME US JURISDICTION

Rate Type Percentage


Percentage Rate 5.5

Click on Rate Details icon

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Field Value

Set As Default Yes

Default Effective Date 01Apr2008

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CREATE TAX RULES

Field Value



Tax NAME US TAX

Click on Go button

Click on Pencil icon in column Set Default to change defaults

Field Name

Determine Place of Supply Ship to, use bill to if ship to is not found

Determine Tax Applicability Applicable

Determine Tax Registration Ship to, use bill to if ship to is not found

Determine Tax Status NAME US STATUS

Determine Tax Rate NAME US RATE

Determine Taxable Basis STANDARD_TB

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Calculate Tax Amounts STANDARD_TC

MAKE TAX AVAILABLE FOR TRANSACTION

Click on Taxes menu

Search for NAME US TAX under Country – United StatesClick on Update pencil icon

Click on Make Tax Available For Transactions

Click on Apply buttonSee the following warning:

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Click on YesClick on Home

Select Purchasing > Purchase Orders

Create a Purchase Order as follows:

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Click on Actions > Manage Tax

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See the Tax calculated correctly:

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how to create a basic setup configuration of eb tax in purchasing

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