Case Study on How OIE Works With Ebtax

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Case study on how EB Tax works with Oracle Internet Expenses

1. EBTAX SETUP The following screen shot shows a basic setup of Regime to Rate Flow where rates for Oracle Internet

Expenses have been defined. This setup will vary depending on the requirement of the Business.

Regime to Rate Flow

Tax Regime:


Subscription to Legal Entity:

Tax:


Tax Status:

Tax Jurisdictions:


Tax Rates: Set up tax rates for your tax statuses and tax jurisdictions. For tax statuses, set up a tax rate

record for each applicable tax rate that a tax status identifies. For tax jurisdictions, set up tax rate records

to identify the tax rate variations for a specific tax within different tax jurisdictions.

Without clicking on Apply go to Rate Details

Check the Internet Expenses Enabled box to use this tax rate for this period on expense reports.


Note: If you want to update this tax rate code for expense reporting at a later time, create a lookup code

for this tax rate. You must use the tax rate code and name as the lookup code and name. Once the Tax

Rate is saved next time onwards you would not be able to view this check box.

Complete and ensure all defaults are set in the Tax Rules. These rules have to be defined as per the

Business Requirement.

Profile Option - OIE:Enable Tax - The OIE:Enable Tax profile option enables the availability of tax-related

elements on expense reports. Set this profile option to Yes to display the Tax Code field on expense

reports. Set this profile option to No to conceal the display.


2. ORACLE INTERNET EXPENSES SETUP

Expense Report Templates: Attach the Internet Expenses Tax Code to the Expense Items which would

include Tax. Also enable the Template for Internet Expenses.

Navigation: Payables->Setup->Invoice->Expense Report Templates

Tax Code Default: Internet Expenses will use the defaulting setup on the Application Tax Options page in

order to default the tax code in the Line Details page in OIE. When the tax defaulting is not setup, then

Internet Expenses will not be able to default the tax code.

Navigation: Payables responsibility for the Operating Unit->Setup->Tax->E-Business Tax Home

For Task Name 'Create Application Tax Options', click 'Go To Task'

-Click 'Create'

-Enter the Operating Unit

-Enter Application Name 'Internet Expenses'

Enter the Defaulting Order

-Defaulting Order 1 should be 'Expense Report Template'

-Apply


Ensure Defaulting Order Use Status is 'Active'

Bounce the Apache server

The other Oracle Internet Expenses related setups like setup of User Responsibility, Approval methods,

Audit responsibility etc. needs to be defined as per the requirement of the Business.

3. Case Study

The following case study will show how an Expense Report is created with the Tax Code defaulted on the

Expense Report. Then exporting the Expense Report to Payables and then calculating the Tax in the

Payables.

Create Expense Report: Oracle Internet Expenses Responsibility->Create Expense Report


Create Expense Report: General Information:

Ensure that all the mandatory information are defaulted or selected correctly. Like Department,

Reimbursement Currency, Expense Template etc.

Click on the button - Next

Create Expense Report: Cash and Other Expenses:

Enter the Date, Receipt Amount, Justification and also select the Expense Type from the List of Value.

Ensure the Expense Type which you have selected is attached with the Tax Code in the Expense report

Template.


Click on the button - Details

Enter the Required fields.

Ensure that the Tax Code has got defaulted, otherwise the tax would not be calculated.

Once done click on the button Return

This will take you back to Create Expense Report: Cash and Other Expenses page.

Here click on the button Next

Create Expense Report: Expense Allocations:


If any changes need to be done in the expense account allocation, then click on the Account Allocations

Tab and do the necessary changes.

Then click on the button Next

Create Expense Report: Review:

Here review all the information and then if everything is fine, submit the Expense Report by clicking on

the button Submit.


Once the Expense Report is submitted, as per your setup, if approval is required, then the Expense

Report needs to be approved by the Approver.

Once the Approver approves the Expense Report, it needs to be approved and audited by the Payables.

So login as Audit user and query the Expense Report.

Click on button Go. The Expense Report will come up in the page.


Click on the Apply button to complete the Audit.

Once the Audit is complete the following message would appear.

Click on Save Button. The work would be saved.


Once the work is saved log out from the Auditor login.

Go back to Payables Responsibility and run the Expense Report Export Concurrent Program to import

the expense report to Payables.


Refresh the Concurrent Request until it is Completed Normal.

The log file will show the following which confirms that the invoice is created.

Now go to Invoice Workbench and query the Expense Report. The Invoice Number would be the

Expense Report Number.


Once the Invoice is queried you can find that the Tax is not calculated. You have to calculate the Tax.

Ensure that the Tax Classification Code is populated from the Expense Report at the Line Level.


Once confirmed that the Tax Classification Code is populated in the Line Level, Calculate the Tax by

Clicking on the Calculate Tax Button.

Once the Tax is calculated, you can see the following Inclusive tax is calculated in the Invoice.

The distribution would be:


Check the Tax Details by clicking on the Tax Details Button.

Note: In Oracle Internet Expenses the Tax calculated is as Inclusive only. Exclusive Tax is not calculated

in Oracle Internet Expenses.

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Case Study on How OIE Works With Ebtax

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