Application Setup Document

How to setup Oracle Applications R12: EB Tax

Document Title : Author :

Oracle EbTax Setup Document Asokan Thangaraju

BR100 document Oracle R12 EB Tax

Approval Record
S.No. 1. 2. 3. 4. 5. Name Position Date Approved by

Change Record
S.No. 1. 2. 3. 4. 5. 6. Version 1.0 Updated By Asokan Thangaraju Updated Date Remarks Initial Document

Reviewers
Name Position

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BR100 document Oracle R12 EB Tax

Index

Introduction.................................................................................................................................................................4 Scope:.............................................................................................................................................................................4 Define Party Tax Profiles............................................................................................................................................5 Define Tax Regimes....................................................................................................................................................6 Define Taxes...............................................................................................................................................................7 Define Tax Statuses....................................................................................................................................................8 Define Tax Jurisdictions..............................................................................................................................................9 Define Tax Recovery Rates......................................................................................................................................10 Define Tax Rates.......................................................................................................................................................11 Define Tax Rules and Defaults.................................................................................................................................12 Define Application Tax Options...............................................................................................................................13 Define Profile Options..............................................................................................................................................14

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Introduction
The objective of the document is to provide all the required setup steps for the Oracle Applications R12 E-Business Tax Module. The setup steps are given below and sample setup data are embedded in the Excels for each step. Ireland is used as a sample country for this setup document. In 11.5.10 the Tax Setup was relatively easier but in Release 12 Oracle has launched a separate Central Tax Module called E-Business Tax. There is a number of setup steps required for the EB Tax module to work. These are discussed in this document with a sample setup data for Ireland. Scope: The intention is to refer to this document as a sample BR100 for the R12 EB Tax Module only. For the detailed Tax Module functionality or further study the reader is advised to refer the EB Tax Implementation Guide and EB Tax User Guide.

BR100 document Oracle R12 EB Tax

Define Party Tax Profiles

Function Id Application Function/Screen Path Function/Screen Description : ZX-008 : Oracle EBTax : Tax Manager>Party>Party Profiles : Use this page to define Party Tax Profiles for you Legal Entity and Operating Unit. Unless you setup the

Party Tax Profile for an Operating Unit, you cannot setup the Receivable Activities in AR. Setup the Party Tax Profiles as per the attached excels.

"Party Tax Profile LE.xls"

"Party Tax Profile OU.xls"

Note: This is the first step in Tax Setup. After we define the Party Tax Profile, we then need to attach that Party with the Tax Regime. Unless this is done, we cannot the Legal Entity or the Operating Unit as the Configuration Owner. If we use the Legal Entity as the Configuration Owner, the tax will be visible across the instance irrespective of the Legal Entity or Operating Unit. If we use the Operating Unit as the Configuration Owner, the tax will be visible only under the specific Operating Unit.

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BR100 document Oracle R12 EB Tax

Define Tax Regimes

Function Id Application Function/Screen Path Function/Screen Description : ZX-001 : Oracle EBTax : Tax Manager>Tax Configuration>Tax Regimes
:

Description: Use this form to define Tax Regimes. Setup the Tax Regime as per the attached Excel

"Tax Regimes.xls"

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BR100 document Oracle R12 EB Tax

Define Taxes
Function Id Application Function/Screen Path Function/Screen Description : ZX-002 : Oracle EBTax : Tax Manager>Tax Configuration>Taxes : Use this page to define the Taxes Required.

Setup the Taxes as per the attached Excel

Taxes.xls

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BR100 document Oracle R12 EB Tax

Define Tax Statuses

Function Id Application Function/Screen Path Function/Screen Description : ZX-003 : Oracle EBTax : Tax Manager>Tax Configuration>Tax Statuses : Use this Page to define the Tax Statuses.

Setup the Tax Statuses as per the attached Excel

"Tax Statuses.xls"

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BR100 document Oracle R12 EB Tax

Define Tax Jurisdictions

Function Id Application Function/Screen Path Function/Screen Description : ZX-004 : Oracle EBTax : Tax Manager>Tax Configuration>Jurisdictions : Use this page to define Tax Jurisdictions

Setup the Tax Jurisdiction as per the attached Excel

"Tax Jurisdictions.xls"

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BR100 document Oracle R12 EB Tax

Define Tax Recovery Rates

Function Id Application Function/Screen Path Function/Screen Description
checked Setup the Tax Recovery Rates as per the attached Excel.

: ZX-005 : Oracle EBTax : Tax Manager>Tax Configuration>Tax Recovery Rates : Use this Page to define Tax Recovery Rates for each Tax which has Allow Tax Recovery Checkbox

"Tax Recovery Rates.xls"

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BR100 document Oracle R12 EB Tax

Define Tax Rates

Function Id Application Function/Screen Path Function/Screen Description : ZX-006 : Oracle EBTax : Tax Manager>Tax Configuration>Tax Rates : Use this Page to define the Tax Rates for Each Tax. The defined Tax rates are automatically also defined as

Tax Classification Codes in the Application Object Library Lookup Types ZX_INPUT_CLASSIFICATIONS and ZX_OUTPUT_CLASSIFICATIONS. These Tax Classification Codes are then used as a Transaction Tax Determining factor while creating Tax Rules. Setup the Tax Rates as per the attached Excel.

"Tax Rates.xls"

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

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BR100 document Oracle R12 EB Tax

Define Tax Rules and Defaults

Function Id Application Function/Screen Path Function/Screen Description : ZX-007 : Oracle EBTax : Tax Manager>Tax Configuration>Tax Rules : Use this section to define the Tax Rules and the Tax Rule Defaults

Setup the Tax Rules and Defaults as per the attached Excel

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BR100 document Oracle R12 EB Tax

Define Application Tax Options

Function Id Application Function/Screen Path
Function/Screen Description

: ZX-009 : Oracle EBTax : Tax Manager>Defaults and Controls > Application Tax Options
: Use this Screen to Create the Defaulting Rule hierarchy for the Tax Classification Codes

Operating unit

Application

Defaulting Order1

Defaulting Order2

Defaulting Order3

Defaulting Order4

Defaulting Order5

Tax Determination Method(Only for Receivables) Oracle EBusiness Tax

Operating Unit Name Operating Unit Name Operating Unit Name

Payables Receivables Purchasing

Supplier Site Customer Site Supplier Site

Supplier Product Supplier

Expense Report Template

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BR100 document Oracle R12 EB Tax

Define Profile Options

Function Id Application Function/Screen Path : ZX-009 : Oracle EBTax : Profile -> System

Profile LOV GL Ledger Name MO: Operating Unit Sequential Numbering FA: Security Profile HR: Business Group HR: Security Profile Default Country

Site Char Ledger Name Operating Unit Name Partially Used

Application Char

Responsibility Char IE_Tax Managers Ledger Name Operating Unit Name Partially Used Business Group Name Business Group Name Ireland

User Char

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