Skip Headers

Oracle E-Business Tax User Guide
Release 12.1
Part Number E13631-03
Go to Table of Contents
Contents
Go to previous page
Previous
Go to next page
Next

Setting Up Taxes in Oracle E-Business Tax

Setting Up Taxes in Oracle E-Business Tax

Use E-Business Tax to set up and maintain your transaction tax requirements in all geographic locations where you do business. You can set up tax configurations to include the rules, default values, and other information necessary for each separate tax requirement. At transaction time, E-Business Tax uses your tax configuration to determine the taxes that apply to each transaction and to calculate the tax amounts.

With E-Business Tax, you can:

You can use the E-Business Tax Home page to manage access to all parts of the E-Business Tax system for setup and maintenance.

The tasks involved in setting up a tax requirement in E-Business Tax fall into three general categories:

  1. Setting up transaction taxes. See: Evaluating Your Tax Configuration.

  2. Completing all of the setups and settings related to the processing of taxes on transactions. See: Processing Taxes on Transactions.

  3. Setting up tax rules and defaults to manage tax processing. See: Tax Rules in Oracle E-Business Tax .

E-Business Tax and Transaction Taxes

E-Business Tax provides tax services for Order to Cash and Procure to Pay business flows in these applications:

E-Business Tax does not provide tax services for these transactions:

You can continue to set up and maintain these taxes in the Oracle E-Business Suite using the functionality available from Release 11i.

Using the Page Hierarchy Personalization

The E-Business Tax Home page lets you manage the navigation to each of the E-Business Suite applications and E-Business Tax components involved in setting up and maintaining your tax configuration using the Oracle Application Framework Page Hierarchy Personalization and Hierarchical Grid (HGrid).

The Page Hierarchy Personalization user interface displays the entire layout of a configurable page in a hierarchy table, or HGrid. You can change the focus of the Page Hierarchy according to the part of the structure that you are working on, and you can drill in or out of the various nodes of the page structure. The HGrid location indicator keeps track of where you are within the page structure. See: Using the Page Hierarchy Personalization Page, Oracle Application Framework Personalization Guide for information about navigating the Page Hierarchy.

The various icons in the Page Hierarchy provide access to specific functions for viewing and maintaining your tax configuration data. See: Page Hierarchy Task Flows, Oracle Application Framework Personalization Guide for information about using each of these functions.

E-Business Tax also uses the Page Hierarchy for these processes:

Using the Setup Tasks Region

The Setup Tasks region of the E-Business Tax Home page uses the HGrid to organize the required and optional setup tasks that you need to complete your tax configuration. Certain setup tasks are conditionally required, depending upon the details of your tax configuration.

You can navigate to each setup page or setup flow from the Setup Tasks region. Complete the setup tasks in the order indicated to create a tax configuration.

Note: You must ensure that you complete all prerequisite implementation tasks in all applicable E-Business Suite applications before you use the Setup Tasks region. See: Setting Up Applications for Oracle E-Business Tax, Oracle E-Business Tax Implementation Guide for a discussion of all application setup tasks related to E-Business Tax.

External Dependencies

Complete the setup tasks in the E-Business Suite applications that E-Business Tax uses for tax-related processes. These setup tasks include:

Tax Configuration

Complete the E-Business Tax setup tasks to create a basic tax configuration for each of your tax regimes. A basic tax configuration contains the data applicable to the taxes belonging to a tax regime.

The tax configuration setup tasks are:

Fiscal Classification System

Complete the E-Business Tax setup tasks for fiscal classifications, if you intend to use fiscal classifications in the creation of tax rules for tax determination. Complete each setup task that applies.

Country Defaults

Set up country default controls to default tax registration information for the applicable tax regimes and taxes to legal establishment party tax profiles. See: Setting Up Country Default Controls for more information.

Tax Exceptions

Set up tax exceptions to apply special tax rates to products. See: Setting Up Tax Exceptions for more information.

Tax Rules

Set up tax rules to manage the setup and execution of the E-Business Tax tax determination process for your tax regimes and taxes. See: Tax Rules in Oracle E-Business Tax for more information.

Complete First Party Legal Entity Party Tax Profile

Complete the party tax profile of the first party legal entity.

First Party Legal Establishment Party Tax Profile

Complete the party tax profile for each legal establishment belonging to the first party legal entity. See: Setting Up a First Party Tax Profile for more information.

Party Tax Profiles for Third Parties

Set up third party tax profiles for your customers and customer sites and suppliers and supplier sites. See: Setting Up a Third Party Tax Profile for more information.

Customers

Suppliers

Configuration Owner Tax Options

Where applicable, set up configuration owner tax options for a combination of configuration owner and application event class. See: Setting Up Configuration Owner Tax Options for more information.

Application Tax Options

Set up application tax options to update migrated tax setup or to create new tax setup based on the Release 11i defaulting hierarchy model. The defaulting hierarchy model defaults tax classification codes to transactions. See: Using Application Tax Options for more information.

Note: You must complete additional setup tasks to use migrated tax data on transactions with E-Business Tax. See: Using Tax Classification Codes for more information.

Make Tax Available on Transactions

After you complete your tax setup and verify that the tax setup behaves according to your requirements, you can enable each tax in the tax regime. Enabling a tax makes it available for use on transactions. See: Updating a Tax for more information.

Simulate Transactions

After you complete your setup tasks, use the Tax Simulator to test the details of your tax configuration. See: Using the Oracle Tax Simulator for more information.

Using the Tax Configuration Region

After you complete tax setups, you can use the Tax Configuration region to display tax configuration data by country or by tax regime.