AIM

BR.100 Setup document

<EBusiness Tax >

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

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Contents
Geography Structure Definition
Geography Validations
Loading Geography / Compile Geographies -
HR_LOCATIONS & HZ LOCATIONS – Loads into System

Define Class Categories & Codes for Fiscal

Classifications
Define Item Type
Define Inventory Category
Define Inventory 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 Type
Define Product Category under Product Classifications
Update>Create
Define Party Fiscal Classifications
Country Defaults for US
Define Configuration Owner Tax Options - Enable Taxes
for PO Event Types and Disable for AR Events
Enable Configuration Owner Options
Open and Closed Issues for this Deliverable
 Open Issues
Closed Issues 

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 >

>
In Trading Community Manager (TCM)>Geography Hierarchy
Click | 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 TCA
HZ is third parties (Vendors)
HR is receiving company (Internal locations)

Mapping Locations
Internal Locations
ations

Delete

ding 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
System 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
uthority

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
eporting 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 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 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 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 Deliverable