How to Setup Oracle Applications R12 EBTax Module Web viewFinance Change Tax Liability....

Application Setup Document

How to setup Oracle Applications R12: EB Tax

Document Title : Oracle EbTax Setup Document

Author : Asokan Thangaraju

BR100 document Oracle R12 EB Tax

Approval Record

S.No. Name Position Date Approved by1.2.3.4.5.

Change Record

S.No. Version Updated By Updated Date Remarks1. 1.0 Asokan Thangaraju Initial Document2.3.4.5.6.

Reviewers

Name Position

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Index

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


Define Party Tax Profiles

Function Id : ZX-008Application : Oracle EBTaxFunction/Screen Path : Tax Manager>Party>Party ProfilesFunction/Screen Description : 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.

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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Define Tax Regimes

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

Description: Use this form to define Tax Regimes.

Setup the Tax Regime as per the attached Excel

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Define Taxes

Function Id : ZX-002Application : Oracle EBTaxFunction/Screen Path : Tax Manager>Tax Configuration>Taxes

Function/Screen Description : Use this page to define the Taxes Required.

Setup the Taxes as per the attached Excel

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Define Tax Statuses

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

Setup the Tax Statuses as per the attached Excel

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Define Tax Jurisdictions

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

Setup the Tax Jurisdiction as per the attached Excel

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Define Tax Recovery Rates

Function Id : ZX-005Application : Oracle EBTaxFunction/Screen Path : Tax Manager>Tax Configuration>Tax Recovery RatesFunction/Screen Description : Use this Page to define Tax Recovery Rates for each Tax which has ‘Allow Tax Recovery’ Checkbox checked

Setup the Tax Recovery Rates as per the attached Excel.

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Define Tax Rates

Function Id : ZX-006Application : Oracle EBTaxFunction/Screen Path : Tax Manager>Tax Configuration>Tax RatesFunction/Screen Description : 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.

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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Define Tax Rules and Defaults

Function Id : ZX-007Application : Oracle EBTaxFunction/Screen Path : Tax Manager>Tax Configuration>Tax Rules Function/Screen Description : 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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Define Application Tax Options

Function Id : ZX-009Application : Oracle EBTaxFunction/Screen Path : Tax Manager>Defaults and Controls > Application Tax OptionsFunction/Screen Description : 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)

Operating Unit Name Payables Supplier Site Supplier Expense Report Template

Operating Unit Name Receivables Customer Site Product Oracle E-Business Tax

Operating Unit Name Purchasing Supplier Site Supplier

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Define Profile Options

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

Profile Site Application Responsibility UserLOV Char Char Char Char

IE_Tax ManagersGL Ledger Name Ledger Name Ledger NameMO: Operating Unit Operating Unit Name Operating Unit NameSequential Numbering Partially Used Partially Used

FA: Security ProfileHR: Business Group Business Group NameHR: Security Profile Business Group NameDefault Country Ireland

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How to Setup Oracle Applications R12 EBTax Module Web viewFinance Change Tax Liability....

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