AIM

BR.100 Setup document <EBusiness Tax >

Author: Creation Date: Last Updated: Document Ref: V ersion: Location: <IMPLEMENTER> January 20, 201 2 January 29, 201 2 <Document Reference Number> 1 .0

C:\User s\Pu blic\Docu m en t s\W h it epa per s\EBT \Or a cle EBT a x Set u p Docu m en t BR1 0 0 .docx

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Contents

Geography Structure Definition Geography V alidations Loading Geography / Compile Geographies - HR_LOCATIONS & HZ LOCATIONS Loads into Sy stem Define Class Categories & Codes for Fiscal Classifications Define Item Ty pe Define Inv entory Category Define Inv entory Category Set Define Tax authority Define Tax Authority Party Tax Profile Define Tax Regime Tax Regime Party Subscriptions Self Assessment First Party Legal Establishment Application Tax options Define Product Classifications Define User Item Ty pe Define Product Category under Product Classifications Update>Create Define Party Fiscal Classifications Country Defaults for US Define Configuration Owner Tax Options - Enable Tax es for PO Ev ent Ty pes and Disable for AR Ev ents Enable Configuration Owner Options Open and Closed Issues for this Deliv erable Open Issues Closed Issues 1. To update the table of contents, put the cursor any where in the table and press [F9]. To change the number of lev els display ed, select the menu option Insert >Index and Tables, make sure the Table of Contents tab is activ e, and change the Number of Lev els to a new v alue.

Geography Structure Definition

Use 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 R12 Navigate to Trading Community Manager Responsibility. The below screenshot shows the navigation > Click | Nex t Page >

In Trading Community Manager (TCM)>Geography Hierarchy

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 V aliadtions

Manage V alidations Mapping Locations Looks for these 3 v alues. This Option shows only warning while entering supplier State Country and City details ev en though they doesnt ex ist in TCA HZ is third parties (V endors) HR is receiv ing company (Internal locations)

Mapping Locations Internal Locations

Delete

Loading Geography / Compile Geographies - HR_LOCATIONS & HZ LOCATIONS Loads into System
Oracle 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 Classifications

Take screen print of request IDs created during this step.

Location: TCM
Create Class Category

Define Item Type

Inventory Responsibilities>Setup Items>Item Types Save ater each code. Can copy and paste between fields.

Click on Icon for new record

Addresses Catalog Items.

Define Inventory Category

Create a Inventory Category Code with the following details Inventory>Setup>Items>Categories>Category Codes For Non-Catalog Find Category: Non% Copy and paste from EBSD to new Instance

Save.

Define Inventory Category Set

Inventory>Setup>Items>Categories>Categories Set

Define Tax authority

Use 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 Authorities Sy stem 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 Profile

Tax Manager>Parties>Party Tax Profiles

Define Tax Regime

Tax 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 Sensitiv e

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 Type

Tax 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 Update>Create

under Product Classifications

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 Classifications

Party 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 US

Tax 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 Events

DO THESE NEXT STEPS LAST

Disabled all 11.5.7 COTOs and Enabled R12 COTOs 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 tax es in R1 2. In this area we checked the box for Make Tax Av ailable for Transactions. This was done for all tax setups.

Open and Closed Issues for this Deliverable

1. Add open issues that y ou identify while writing or rev iewing this document to the open issues section. As y ou resolv e issues, mov e them to the closed issues section and keep the issue ID the same. Include an ex planation of the resolution. When this deliv erable is complete, any open issues should be transferred to the project- or process-lev el Risk and Issue Log (PJM.CR.040) and managed using a project-lev el Risk and Issue Form (PJM.CR.040). In addition, the open items should remain in the open issues section of this deliv erable, but flagged in the resolution column as being transferred.

Open Issues
ID Issue Resolut ion Responsibilit y Target Dat e Impact Dat e

Closed Issues
ID Issue Resolut ion Responsibilit y Target Dat e Impact Dat e