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Using Accounting Transactions, Tax Transactions, and Reporting
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This guide also applies to on-premise implementations

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9 Manage Transaction Taxes: Prepare Transaction Tax Reports

This chapter contains the following:

Prepare Transaction Tax Reports: Overview

Tax Reporting Ledger: Explained

Tax Reconciliation and Audit Reports: Explained

VAT Reporting: How It Is Processed

Tax Reporting for US Sales Tax: Explained

European Sales Listing Report: Explained

Input and Output Tax Gain/Loss Reports for Singapore: Explained

Reporting Account Postings in the Interim Tax Register and Tax Register: Example

Reporting Output Taxes for Tax Setup Options on Receivables Activities in the Nonrecoverable Tax Register and Tax Register: Example

Reporting Input Taxes in the Nonrecoverable Tax Register and Recoverable Tax Register: Example

Reporting Prepayments in the Tax Register: Example

Reporting Offset Taxes in the Tax Register: Example

Reporting Input Taxes in the Tax Register in Primary and Secondary Ledger Currency: Example

FAQs for Prepare Transaction Tax Reports

FAQs for Manage Intrastat Transactions

Prepare Transaction Tax Reports: Overview

The Prepare Transaction Tax Reports activity provides you with legal, business, and reconciliation reports for tax activity associated with buying and selling goods and services through Oracle Fusion Payables and Oracle Fusion Receivables. Produce reports and returns to meet tax reporting requirements for specific countries and those required for reconciliation and audit of tax calculated on transactions. Generate registers with comprehensive information of transactions with tax impact, which can be used as a basis for creating tax reports required by tax authorities and meeting the internal reporting needs of the organization.

Tax reporting strategy is centralized around several key tax reporting features:

  • Tax Reporting Ledger: Transaction tax reporting is centralized through the Tax Reporting Ledger.

  • Tax Selection and Final Tax Reporting Processes: The Tax Selection Process allows you to run tax reports in a preliminary mode, review transactions selected for reporting, and make corrections before submitting tax reports to the tax authority. The Final Tax Reporting Process allows you to control which transactions cannot be changed, once the reports are filed with the tax authorities.

  • Common Data Models: Prepare custom and specialized tax reports based on the common data models. Customize general tax reports and create reports that meet your specific reporting requirements. The following general tax reports that use common data models are provided:

    • Tax Register

    • Financial Tax Register

    • Tax Reconciliation Report

    • Tax Reconciliation by Taxable Account Report

    • Tax Audit Trial

    For more information on customizing reports, see Oracle Business Intelligence Publisher Report Designer's Guide.

  • VAT Data Models: Prepare specialized reports based on value-added tax (VAT) data models. For some EMEA countries, country specific reports based on VAT data models are provided, for example, Italian VAT reports and Spanish VAT reports. The solution is global and you can use VAT data models to prepare country specific reports.

  • Tax Reporting Date: Choose a tax reporting date to meet country specific legal requirements. Options are:

    • Transaction Date

    • Accounting Date

    • Tax Invoice Date

  • Tax Calendar: Allows you to meet country specific reporting requirements, for example, quarterly reporting. The tax calendar helps you to control the transactions so they are not reported more than once. The tax calendar is maintained independently of the accounting calendar.

  • Tax Registration Number: The recommended strategy is to drive tax reporting by the tax registration number.

  • Tax Reporting Currency: Tax reporting supports reporting in primary ledger currency, secondary ledger currency, and reporting ledger currency to meet your country-specific requirements. This is specifically important for global organizations and countries with high fluctuation in local (ledger) currency.

    Note

    Use reporting ledgers or secondary ledgers defined in Oracle Fusion General Ledger for handling reporting in currencies other than the primary currency of a ledger.

  • Reporting: Group transaction tax data based on the tax registers. The following tax registers are available for reporting:

    • Tax Register

    • Recoverable Tax Register

    • Norecoverable Tax Register

    • Interim Tax Register

Tax reporting is integrated with Oracle Fusion Tax. The main components of Fusion tax reporting solution are:

  • Centralized transaction tax reporting through the Tax Reporting Ledger

  • Tax Selection and Final Tax Reporting Processes to meet specific tax reporting requirements

  • Common Data Models on which custom and specialized tax reports can be prepared

  • VAT Data Models to prepare specialized reports

  • Fusion transaction tax reporting process which includes data preparation and presentation

Tax Reporting Ledger

The Tax Reporting Ledger supports complex global tax reporting requirements. The tax details are derived from receivables and payables transactions and stored in an interface table. The tax extract copies the original data without performing complex calculation or derivations.

The Tax Reporting Ledger provides:


Parameter

Description

Level of detail

Levels are:

  • Summary

  • Transaction header

  • Transaction line

  • Distribution

Column grouping

Column groupings are:

  • Extract

  • Reporting entity

  • Reporting context

  • Legal entity

  • Transaction header level

  • Billing

  • Shipping

  • Banking

  • Receivables transaction

  • Taxable amounts

  • Taxable line fields

  • Tax amounts

  • Tax line fields, including tax and tax rate

  • Payables tax line

  • Receivables tax line

  • Transaction line user descriptive flexfield

  • Accounting

  • Miscellaneous

Information level

Each of the column groups display the level of detail at which the information is available.

Information source

Each column group displays the source application.

Tax Selection and Final Tax Reporting Processes

The Tax Selection and Final Tax Reporting Processes provide a single solution to meet country specific tax reporting requirements. Tax reporting is based on the tax registration number and driven by the reporting identifier. A tax reporting identifier is a system derived entity identifier. It consists of the parameter values you provide when running the Tax Selection Process, for example, tax regime, tax reporting context, such as ledger name or legal entity name, and tax registration number.

Generate preliminary versions of tax reports in open tax periods. You can verify and correct tax details before finalizing the reports. Once you generate the final reports, the tax period is closed to prevent updating or double reporting. You report updates as adjustments in subsequent periods.

Common Data Models

Use the common data models which use the Tax Reporting Ledger to create specific reports.

For example, the two extract reports include:


Description

Transaction Content Overview

Key Influencers

Payables Tax by Ledger Extract consists of input tax and accounting information.

  • Invoices

  • Prepayments

  • Mixed invoices

  • Expense reports

  • Upgraded journal entries

  • Only with tax lines associated

  • Validated and unaccounted or accounted

  • Tax regime

  • Tax

  • Tax jurisdiction

  • Tax status

  • Tax rate

  • Transaction type

  • Accounting dates

  • Transaction dates

Receivables Tax by Ledger Extract consists of output tax and accounting information.

  • Invoices

  • Credit memos

  • Debit memos

  • Adjustments

  • Cash applications

  • Miscellaneous receipts

  • Only with tax lines associated

  • Completed and unaccounted or accounted

  • Tax regime

  • Tax

  • Tax jurisdiction

  • Tax status

  • Tax rate

  • Transaction type

  • Accounting dates

  • Transaction dates

VAT Data Models

Use the VAT data models which use the Tax Reporting Ledger to create specific reports.

The Tax Reporting Ledger supports:

  • Italian VAT registers

  • Spanish VAT journals

  • UK Reverse Charge Sales List

  • French Deductible VAT Declaration

Fusion Transaction Tax Reporting Process

The reporting process itself consists of two components:

  • Data preparation: The data preparation component is hidden and used to extract data from relevant tables, for example, Oracle Fusion Payables, Oracle Fusion Receivables, Oracle Fusion General Ledger, Oracle Fusion Subledger Accounting, and Oracle Fusion Tax tables. The extract stores data into temporary tables. Data preparation includes:

    • Tax data extracts that are XML data files that contain data for a specific run of a report.

    • Data models that describe the source and structure of reported data and can be shared by many reports.

  • Data presentation: Data presentation provides report output files in a desired format. for example, PDF, HTML, RTF, and text. Data presentation includes:

    • Templates that define report layouts. Every report comes with a default template.

    • Templates that give a variety of formatting options and can easily be customized.

Tax Reporting Ledger: Explained

The Tax Reporting Ledger is a single solution for complex global tax reporting requirements on sales and purchases.

The Tax Reporting Ledger program extracts tax details from Oracle Fusion Receivables, Oracle Fusion Payables, and Oracle Fusion Expenses transactions and stores it in an interface table. The Tax Reporting Ledger program copies tax details from Oracle Fusion General Ledger transactions, but just for upgraded transactions. The Tax Reporting Ledger consists of the tax information recorded in each of these and related products. The Tax Reporting Ledger program also extracts the accounting information from each application and stores it in an interface table. Data derived is stored in a raw format, without performing any complex calculations or derivations.

When you submit a job to run a tax report, the report logic calls the Tax Reporting Ledger. The calling report logic, for example, the Tax Register report, performs complex calculations and derivations.

The reporting process contains two components: data preparation and data presentation.

  • Data preparation: The data preparation component is hidden from users and is used to extract data from the relevant tables.

  • Data presentation: The data presentation component provides report output files in a desired format, such as PDF, HTML, RTF, and text.

Data Preparation

The Tax Reporting Ledger program extracts tax information from each application and stores the data in an interface table. Tax data extracts are XML data files that contain data for a specific run of a report. The data models describe the source and structure of reported data. They can be shared by many reports.

The Tax Reporting Ledger program extracts tax transaction data from these sources:

  • Receivables invoices, credit memos, and debit memos

  • Receivables line, tax, and invoice adjustments

  • Receivables payment application for deferred tax

  • Receivables earned and unearned discounts

  • Receivables finance charges

  • Receivables miscellaneous receipts and payments

  • Payables invoices and credit memos

  • Payables prepayments

  • Migrated General Ledger manual journal entries

The tax extract copies the original data without performing complex calculation or derivations of taxable or tax amounts. Each record of the extract table includes both taxable and tax amounts and shows this information grouped by the transaction number and tax regime, tax, tax jurisdiction, tax status, tax rate codes of each transaction.

Data Presentation

You can access the data models from the Oracle Business Intelligence Publisher reporting tool. In most jurisdictions, tax authorities require tax reports to include specific information and to present this information at different levels of summarization. This requirement is supported with tax journal reports, tax audit reports, and tax summary reports.

Use the predefined Oracle Business Intelligence Publisher templates, copy the predefined templates and customize them, or create new templates to publish the data in a required format and level of summarization that you need.

The Tax Register report, Financial Tax Register report, and tax registers print accounting and tax information created in Receivables, Payables, and General Ledger. Available tax registers include:

  • Interim Tax Register: Use this register to report accounting entries to manage your deferred Receivables and cash applications applied against invoices.

  • Tax Register: Use this register to report accounting entries for invoice lines that reference standard tax rate codes and cash applications against invoice lines with deferred tax rate codes. This report manages tax liability from standard and collected output tax accounts. The Tax Register shows both partial and fully recoverable input taxes. Input tax transactions that are fully not recoverable appear only in the Nonrecoverable Tax Register.

  • Nonrecoverable Tax Register: Use this register to show your partial and fully nonrecoverable input taxes. This report includes tax accounting for earned discounts, unearned discounts, finance charges, and adjustments as defined by the tax rate code of the referenced invoice.

The following table describes selected process parameters:


Name

Description

Reporting Level

The reporting level gives you the option to run reports on two different levels:

  • Ledger: The report runs for the legal entities and business units within your security profile.

  • Legal Entity: The report runs for a selected legal entity within your security profile. The report extracts transactions that display this legal entity at the header level.

Reporting Context

The list of values for this parameter depends on the selected reporting level. If the reporting level is Legal Entity, then you can run this report for a tax registration number assigned to the tax registrations of the legal entity.

Accounting Status

The reports include unaccounted transactions, accounted transactions, or both accounted and unaccounted transactions. It is your responsibility to ensure that the transactions reported for the same set of parameter values, but different currency, are accounted to avoid discrepancy in the output files created.

For example, you may want to report on the transactions in the primary ledger currency, secondary ledger currency, or reporting currency. Only accounted transactions are reported in secondary ledger and reporting ledger currency.

Currency

The reports can be run in the following currency codes:

  • Transaction currency: If a specific transaction currency is selected, then the reports display items created in that currency only.

  • Ledger currency: You can select primary or secondary ledger currency. If you run the report for a secondary ledger currency, only transactions that are accounted are displayed.

  • Reporting currency: If you run the report for a reporting ledger currency, only transactions that are accounted are displayed.

Accounting Date

The reports print all transactions based on the selected accounting date range. The default values for From Accounting Date and To Accounting Date parameters are the start and end dates of the most recent accounting period.

Transaction Date

The reports include the transactions for the date range specified. The transaction dates for each class of transaction are defined as follows:

  • For invoices, credit memos, debit memos, and adjustments, the date of the transaction.

  • For discounts and receipt applications, the application date of the associated cash receipt.

  • For miscellaneous cash transactions, the date of the receipt.

Tax Reconciliation and Audit Reports: Explained

Use the tax reconciliation reports and the audit report when you are preparing your tax returns. Tax reconciliation reports reflect the tax determined on transactions and are used to verify taxes applied on transactions. These reports support period end and close processes of reconciling taxes on transactions with accounted transactions.

Reconciliation reports are template reports that you can use or copy the template and customize the layout to suit your reporting needs.

Tax reconciliation and audits reports include:

  • Tax Reconciliation Report

  • Tax Reconciliation by Taxable Account Report

  • Tax Audit Trail report

Tax Reconciliation Report

Use the Tax Reconciliation Report to prepare the output tax portion of your periodic tax returns.

The Tax Reconciliation Report lists the taxable and tax amounts, by tax account, of all Receivables transactions for a given period to enable you to identify and review your tax liability for various tax rate codes. The report displays all of the transaction details or summary information from the Receivables subledger.

Choose which transaction types to include in the report, for example, include invoices but exclude adjustments. You can also report on transaction transferred to General Ledger (posted), transaction not transferred (unposted), or all transactions.

Tax Reconciliation by Taxable Account Report

Use the Tax Reconciliation by Taxable Account report to report on taxable transactions in Oracle Fusion Payables, Oracle Fusion Receivables, and Oracle Fusion General Ledger upgraded transactions. This report fulfills the legal reporting requirements for tax returns and tax audits for tax accounting.

The Tax Reconciliation by Taxable Account report lets you:

  • Prepare a tax return from a single source

  • Reconcile period-end taxable account balances

The Tax Reconciliation by Taxable Account report lets you report on all taxable transactions in a single report and use that to prepare your tax returns. The report lists accounted transactions only.

The report prints for each transaction:

  • Transaction source: Payables, Receivables, or General Ledger

  • Accounting date

  • Transaction date

  • Transaction number

  • Customer or supplier name

  • Taxable amount

  • Tax amount

The Tax Reconciliation by Taxable Account report lets you reconcile period-end taxable account balances to tax amounts.

The summarization level options for the report are:

  • Taxable account: Displays transactions by taxable account and tax rate code. The report prints totals for each tax rate code within an account and for each account.

  • Tax rate code: Displays transactions by tax rate code and taxable account. The report prints totals for each account within a tax rate codes and for each tax rate code.

    The predefined template provides you with a report that orders transactions by tax rate code and taxable account.

The accounting segment range provides you with the ability to report transactions with taxable lines posted on the account within the segment range. The currency represents the transaction currency for the report.

Tax Audit Trail Report

Use the Tax Audit Trail report to review tax information for posted or partially posted invoices. This report provides detail tax and invoice information and the total amounts for each tax rate code in the entered currency and ledger currency. The report lists, for each tax rate code, distributions of all posted or partially posted invoices. The report includes, for each invoice, both the tax amount and the invoice amount subject to tax.

VAT Reporting: How It Is Processed

Generate EMEA value-added tax (VAT) reports for journal, summary, turnover, and audit information. To generate VAT reports, you must complete the following steps:

  1. Select the tax transactions using the Tax Selection Process.

  2. Generate country-specific preliminary reports.

  3. Generate final reports using the Final Tax Reporting Process.

  4. Print country-specific reports in the final mode or reprint if needed.

Settings That Affect VAT Reporting

Run the Tax Selection Process to select tax transactions within a tax period.

The following table describes selected process parameters:


Name

Description

Reporting Level

Enter the reporting level for which you want to select transactions. It can be ledger or legal entity.

Note

If you want to report by the legal entity or ledger level, then you must complete the setup for tax registrations in the context of tax regime for the legal reporting units in your company in the party tax profile.

Ledger

Enter the name of the ledger. If you have selected ledger as the reporting level, then you must enter the ledger name.

Tax Registration Number

Select the appropriate tax registration number. When the reporting level is legal entity, the transactions are filtered based on the tax registration number, tax regime, and legal entity. When the reporting level is ledger, you must choose the tax registration number to determine the tax calendar for your reporting entity and other EMEA VAT setup attributes.

Accounting Status

Enter the accounting status. You can run tax reports, general and country-specific, for unaccounted, accounted, and both unaccounted and accounted transactions. This helps you to run trial reports and make any corrections before submitting the final report to tax authorities.

Important

It is your responsibility to make sure that all transactions are accounted before running the final version of the report and sending it to the tax authority.

Options include:

  • Accounted: Only accounted transactions are selected.

  • Unaccounted: Only unaccounted transactions are selected. No accounting information is populated. Transactions must be validated in Payables or complete in Receivables, if you want to select them in the Tax Selection Process.

  • Both: Accounted and unaccounted transactions are selected. Accounting information is populated for accounted transactions only.

If you run tax reports for secondary ledger or reporting ledger currency they do not include unaccounted transactions. There is no representation of unaccounted transactions in the subledger accounting tables.

Entity Identifier

Enter the entity identifier or leave it blank. If you leave it blank, the application derives the entity identifier based on the parameter values you already selected, such as tax registration number and ledger.

The Tax Selection Process stamps every selected transaction with the entity identifier, which is later used as a reporting criteria when you run any of the EMEA VAT reports in preliminary, final, or reprint mode.

How VAT Reporting Is Processed

The Tax Selection Process creates a repository of all the transactions eligible for reporting from Oracle Fusion Tax, Oracle Fusion Payables, Oracle Fusion Receivables, and Oracle Fusion General Ledger.

Run country-specific reports, such as Italian or Spanish reports, to see what transactions are selected through the Tax Selection Process. You can run this process as many times provided you have not completed final reporting for the chosen tax period. Each time you run the selection process, the application replaces data pertaining to the previous run with latest data to accommodate any changes to tax transactions.

Note

The Tax Selection Process considers corrections or backdated transactions only when the previous period is finally reported. Otherwise, it reports only the current period data.

After you have selected the transactions, run country-specific reports in the preliminary mode, such as the Italian Deferred Tax Register or the Spanish Input VAT Journal. VAT reports, which are run for an open tax period (final reporting process not run for this particular period), are considered preliminary reports and are printed with a Report Type: Preliminary . You can run preliminary reports more than once. The preliminary tax reports enable you to run a trial version of the reports to verify and correct data before reporting to the tax authorities.

Run the Final Tax Reporting Process to stamp all the tax transactions as final. If you make changes to the transaction before running the final process, you must run the Tax Selection Process and preliminary reports. Repeat this process until the report data is correct and then run the Final Tax Reporting Process. After completing the final process, you can run individual reports in the final and reprint mode. You can run reprints more than once.

The Final Tax Reporting Process stamps transactions as finally reported to avoid double reporting and closes the tax reporting period. Once the tax reporting period is closed, you cannot run the Tax Selection Process.

Run the Final Tax Reporting Process for the periods in the ascending order as they are defined in the tax calendar. For example, the Jan-10 tax period is closed, the Feb-10 tax period is open, the Mar-10 tax period is closed. and the Apr-10 tax period is the latest open tax period. If you enter a transaction for Feb-10 and run the Tax Selection Process for the Apr-10 tax period, the transaction is reported in Apr-10 because this is the latest open period, although Feb-10 is still open.

Important

You cannot change any data in the transaction after running the final process and the application closes the tax period.

Tax Reporting for US Sales Tax: Explained

Use the US Sales Tax Report to review you tax liability to the various tax authorities in the United States. You can reconcile and report on state and local taxes that you record on your Oracle Fusion Receivables transactions using the US Sales Tax Report. The report includes all invoices, credit memos, and adjustments broken down by tax jurisdiction and lists taxable, exempt, and tax amounts.

Note

The US Sales Tax Report supports only accrual basis reporting for your Receivables transactions. It is only used for United States sales tax.

Note

For adjustments to be reported correctly in the US Sales Tax Report, tax jurisdictions must be associated with a corresponding tax rate defined for the jurisdiction.

Report Parameters

The following table describes selected process parameters:


Name

Description

Reporting Level

The reporting level gives you the option to run reports on two different levels:

  • Ledger: The report runs for the legal entities and business units within your security profile.

  • Legal Entity: The report runs for a selected legal entity within your security profile. The report extracts transactions that display this legal entity at the header level.

Reporting Context

The list of values for this parameter depends on the selected reporting level. If you select Ledger as the reporting level, you can report on legal entities and business units associated with ledgers defined in the ledger set or data access set within your security profile.

Tax Registration Number

If the reporting level is Legal Entity, then you can run this report for a tax registration number assigned to the tax registrations of the legal entity.

Transaction Date

The report includes the transactions for the date range specified. If you specify a transaction date range but no accounting date range, your report will not balance to the General Ledger if the transaction and accounting dates for a transaction fall in different periods.

Accounting Date

The report prints all transactions based on the selected accounting date range.

State

The report includes the sales tax information for the state you specify.

Exemption Status

The report lists transactions which reference exemptions with that status. You can find all transactions using rejected exemptions by entering Rejected.

European Sales Listing Report: Explained

Use the European Sales Listing Report to declare goods and services that are rendered within the European Union (EU) to VAT-registered customers in the other EU member states.

It can be used to display the Intra EU service, goods, or triangulation transactions in EU member states other than your own. For these transactions to appear jointly or in separate European Sales Listing reports, you must specify the Intra EU tax reporting code associated with the Intra EU transactions for goods or services as a selection parameter for the report.

You can report on transactions that you record for your Oracle Fusion Receivables. The report includes all invoices, credit memos, and adjustments. It is based on the invoice tax date that is the date on which goods and services are rendered.

Report Parameters

The following table describes selected process parameters of the European Sales Listing report:


Parameter Name

Description

Trader VAT Number

Select the tax registration number of the first party legal reporting unit for which the report is being created.

Country of the Tax Registration Number

Select the site whose country code will be displayed on the report when the tax registration number does not contain the first two characters as the country code.

Include Prior Period Adjustments and Credit Memos

Select Yes to display adjustments and credit memos, which are created in the selected reporting period but are related to transactions that are reported in a different period. Select No for adjustments and credit memos to be included in the regular totals.

Rounding Rule

Select the method that is used to round off the calculated taxes to the minimum accountable unit. The available options are Up, Down, and Nearest.

Minimum Reportable Amount

Enter a minimum reportable amount. This is the smallest unit used for the ledger currency amounts.

Tax Reporting Type Code

Select a tax reporting type code as created in Oracle Fusion Tax. Select the appropriate Intra EU transaction tax reporting type.

Tax Reporting Code for Intra-EU Goods

Select a tax reporting code created under the tax reporting type that you previously selected. Specify the tax reporting code created for goods. If goods transactions should not to be included in the report, then the value should be null.

Tax Reporting Code for Intra-EU Services

Select a tax reporting code created under the tax reporting type that you previously selected.

Additional Tax Reporting Code 1

Select a tax reporting code created under the tax reporting type that you previously selected. If required, specify the tax reporting code created for triangulation of goods or goods and services.

Additional Tax Reporting Code 2

Select a tax reporting code created under the tax reporting type that you previously selected. If required, specify the tax reporting code created for triangulation of goods or goods and services.

Input and Output Tax Gain/Loss Reports for Singapore: Explained

Use the Input Tax Gain/Loss Report for Singapore and the Output Tax Gain/Loss Report for Singapore to view the difference in both tax amounts and taxable amounts on foreign invoices for different conversion rates for Oracle Fusion Payables and Oracle Fusion Receivables transactions, respectively.

The reports display different information, depending on whether the ledger currency is Singapore Dollar (SGD) or in another currency. For ledgers with the currency of SGD, the tax gain or loss is displayed together with transaction information in SGD currency. For ledgers with the currency that is not SGD, the tax information is displayed in both SGD currency for reporting to the tax authorities, and also in the accounted currency. The Input Tax Gain/Loss Report for Singapore displays the in-house conversion rate and the supplier conversion rate. The Output Tax Gain/Loss Report for Singapore displays the in-house conversion rate and the general ledger daily rate. The report only displays invoices that are approved and posted to Oracle Fusion General Ledger.

Before you can run the Input Tax Gain/Loss Report for Singapore and the Output Tax Gain/Loss Report for Singapore, you must complete the related setup. This includes setting up:

  • Legal entities and legal reporting units for each company site that is responsible for reporting taxes to the tax authority.

  • Tax regimes and taxes that you need for Payables and Receivables transactions.

  • Suppliers and customers conversion rates to calculate the tax amount and invoice taxable amount for foreign currency invoices.

    For the Input Tax Gain/Loss Report for Singapore you can enter the supplier tax invoice conversion rate on the invoice to represent the supplier conversion rate. For the Output Tax Gain/Loss Report for Singapore you can enter the general ledger daily rate to represent the spot rate.

    The gain/loss in the tax amount for foreign currency invoices is the difference between the in-house tax amount using the in-house conversion rate and the supplier or customer tax amount using the supplier or customer conversion rate (spot rate) you enter. Similarly, the gain/loss in the taxable amount is the difference between the in-house taxable amount using the in-house conversion rate and the supplier or customer taxable amount using the supplier or customer conversion amount. A manual journal entry is posted to the General Ledger to incorporate the gain/loss.

Note

When conversion rate information is not complete, the following occurs:

  • Input Tax Gain/Loss Report for Singapore: For transactions that are not in SGD currency where there is no supplier conversion rate entered, the report indicates that the information is missing by displaying Unspecified for the supplier conversion rate and displaying Undetermined for the tax amounts in SGD currency.

  • Output Tax Gain/Loss Report for Singapore: For transactions that are not in SGD currency where there is no general ledger daily rate entered, the report indicates that the information is missing by displaying Unspecified for the spot conversion rate and displaying Undetermined for the tax amounts in SGD currency.

Report Parameters

The following table describes selected process parameters of the Input Tax Gain/Loss Report for Singapore and the Output Tax Gain/Loss Report for Singapore:


Parameter Name

Description

Reporting Level

The reporting level gives you the option to run reports on two different levels, Ledger and Legal Entity.

Reporting Context

The list of values for this parameter depends on the reporting level you selected.

  • If you select the reporting level of Legal Entity, you select the legal entity on which to report, and then select the tax registration number associated with the legal entity.

  • If you select Ledger as the reporting level, you can report on legal entities and business units associated with ledgers defined in the ledger set or data access set within your security profile. Run tax reports by ledger when you want to review your tax activity as it aligns with your accounting. Run tax reports by ledger when you need to view tax activity in a currency other than the currency of the ledger of your legal entity or the currencies of the transactions.

Tax Registration Number

If the reporting level is Legal Entity, then you can run this report for a tax registration number assigned to the tax registrations of the legal entity.

Note

When you intend to use the report to prepare your tax returns the recommended approach is that you run tax reporting by legal entity and tax registration number. Your legal entities and their associated tax registration numbers are aligned with how your businesses are legally recognized by government authorities. Preparing reports by tax registration number allows you to view all reportable activity for a given legal entity in your business regardless of how your internal business units are organized.

From Accounting Period and To Accounting Period

The report prints all transactions based on the selected accounting period range.

Tax

The report lists invoice and tax information for the specified tax.

Supplier Name or Customer Name

The report is generated for the specified supplier or customer name.

Reporting Account Postings in the Interim Tax Register and Tax Register: Example

The following scenario illustrates the difference between the Interim Tax Register and the Tax Register. Interim tax details are only extracted for Oracle Fusion Receivables transactions.

Oracle Fusion Receivables Invoice

The following table shows the Receivables invoice accounting entries in USD currency.


Account

Debit Amount

Credit Amount

Description

Receivable

1140.00

Revenue

600.00

Tax

60.00

Tax at 10%

Revenue

400.00

Tax

80.00

Interim tax at 20%

Partial Payment

This table shows the accounting entries created when you apply a partial payment of 570 USD. In addition to reducing the open receivable, the cash application moves 50% of the deferred tax originally recorded on the invoice to a collected tax account.


Account

Debit Amount

Credit Amount

Description

Cash

570.00

Tax

40.00

50% of the deferred tax

Receivable

570.00

Tax

40.00

Tax due to the tax authority

Tax Registers

The output from the Interim Tax Register for the tax at 10% in which the transaction is within the period range entered for the report is:


Transaction Number

Transaction Class

Taxable Amount

Tax Amount

No data found

The output from the Interim Tax Register for the tax at 20% in which the transaction is within the period range entered for the report is:


Transaction Number

Transaction Class

Taxable Amount

Tax Amount

Inv-Test1

Invoice

400.00

80.00

Cr-Test1

Cash Application

-200.00

-40.00

The output from the Tax Register for the tax at 10% in which the transaction is within the period range entered for the report is:


Transaction Number

Transaction Class

Taxable Amount

Tax Amount

Inv-Test1

Invoice

600.00

60.00

The output from the Tax Register for the tax at 20% in which the transaction is within the period range entered for the report is:


Transaction Number

Transaction Class

Taxable Amount

Tax Amount

Cr-Test1

Cash Application

200.00

40.00

As these examples illustrate, the Interim Tax Register shows only those account postings for deferred tax, including the invoice and cash application. The Tax Register shows all tax transactions with immediate settlement as well as all cash applications to a deferred tax invoice.

Note

Using Receivables you can apply, reverse, and reapply cash. Each time you perform these tasks, the original document sequence name and number of the cash receipt identifies the application.

Reporting Output Taxes for Tax Setup Options on Receivables Activities in the Nonrecoverable Tax Register and Tax Register: Example

The following scenario illustrates the difference between the Tax Register and the Nonrecoverable Tax Register for an adjustment with nonrecoverable tax.

Oracle Fusion Receivables Invoice

The following table shows the Receivables invoice accounting entries in USD currency.


Account

Debit Amount

Credit Amount

Description

Receivable

1140.00

Revenue

600.00

Tax

60.00

Tax at 10%

Revenue

400.00

Tax

80.00

Tax at 20%

Adjustments

An adjustment for -100.00 USD is made against the invoice, reducing the receivable to 1040.00 USD. This adjustment is accounted for using a Receivables activity with the following settings:


Receivables Activity Option

Setting

GL Account Source

Revenue on Invoice

Tax Rate Code Source

Invoice

Recoverable

Yes

This table shows the accounting entries created as a result of this adjustment:


Account

Debit Amount

Credit Amount

Description

Revenue

52.63

Revenue at 10%

Revenue

35.09

Revenue at 20%

Tax

5.26

Tax at 10%

Tax

7.02

Tax at 20%

Receivable

100.00

A second adjustment is made against the invoice for -200.00 USD. This adjustment is accounted for using a Receivables activity with the following settings:


Receivables Activity Option

Setting

GL Account Source

Revenue on Invoice

Tax Rate Code Source

Invoice

Recoverable

No

This table shows the accounting entries created as a result of this adjustment:


Account

Debit Amount

Credit Amount

Description

Revenue

105.26

Revenue at 10%

Revenue

70.18

Revenue at 20%

Nonrecoverable Tax

10.52

Tax at 10%

Nonrecoverable Tax

14.04

Tax at 20%

Receivable

200.00

Tax Registers

Using the accounting entries created in this example, the output from the Tax Register with the tax at 10% is:


Transaction Number

Transaction Class

Taxable Amount

Tax Amount

Inv-Test2

Invoice

600.00

60.00

Using the accounting entries created in this example, the output from the Tax Register with the tax at 20% is:


Transaction Number

Transaction Class

Taxable Amount

Tax Amount

Adj-1

Adjustment

-52.63

-5.26

Using the accounting entries created in this example, the output from the Nonrecoverable Tax Register with the tax at 10% is:


Transaction Number

Transaction Class

Taxable Amount

Tax Amount

Adj-2

Adjustment

-105.26

-10.52

Using the accounting entries created in this example, the output from the Nonrecoverable Tax Register with the tax at 20% is:


Transaction Number

Transaction Class

Taxable Amount

Tax Amount

Adj-2

Adjustment

-70.18

-14.04

Reporting Input Taxes in the Nonrecoverable Tax Register and Recoverable Tax Register: Example

The following scenario illustrates how the Tax Registers appear when two Oracle Fusion Payables invoices have either fully recoverable or partial or nonrecoverable taxes.

Oracle Fusion Payables Invoices

The following table shows the accounting entries in USD currency for the Payables invoice AP-Inv-Test3.


Account

Debit Amount

Credit Amount

Description

Expense

600.00

Net expense amount taxed at 10%

Tax

60.00

Tax at 10% is fully recoverable

Expense

400.00

Net expense amount taxed at 20%

Expense

32.00

40% of 80.00 (400.00 * 20%) is nonrecoverable

Tax

48.00

60% of 80.00 (400.00 * 20%) is recoverable

Liability

1140.00

The following table shows the accounting entries in USD currency for the Payables invoice AP-Inv-Test4.


Account

Debit Amount

Credit Amount

Description

Expense

600.00

Net expense amount taxed at 10%

Expense

60.00

Tax at 10% is nonrecoverable

Expense

400.00

Net expense amount taxed at 20%

Expense

80.00

Tax at 20% is nonrecoverable

Liability

1140.00

Tax Registers

Using the accounting entries created in this example, the Input Tax Register with the tax at 10% appears as:


Transaction Number

Transaction Class

Taxable Amount

Recoverable Tax Amount

Nonrecoverable Tax Amount

AP-Inv-Test3

Invoice

600.00

60.00

0.00

Using the accounting entries created in this example, the Input Tax Register with the tax at 20% appears as:


Transaction Number

Transaction Class

Taxable Amount

Recoverable Tax Amount

Nonrecoverable Tax Amount

AP-Inv-Test3

Invoice

400.00

48.00

32.00

Using the accounting entries created in this example, the Nonrecoverable Input Tax Register with the tax at 10% appears as:


Transaction Number

Transaction Class

Taxable Amount

Recoverable Tax Amount

Nonrecoverable Tax Amount

AP-Inv-Test4

Invoice

600.00

0.00

60.00

Using the accounting entries created in this example, the Nonrecoverable Input Tax Register with the tax at 20% appears as:


Transaction Number

Transaction Class

Taxable Amount

Recoverable Tax Amount

Nonrecoverable Tax Amount

AP-Inv-Test3

Invoice

400.00

48.00

32.00

AP-Inv-Test4

Invoice

400.00

0.00

80.00

Reporting Prepayments in the Tax Register: Example

The following scenario illustrates the content of the Tax Register when you create prepayments.

Oracle Fusion Payables Prepayment Invoice

The following table shows the accounting entries in USD currency for the establishment of the Payables prepayment invoice. The example invoice number is AP-Inv-Test10.


Account

Debit Amount

Credit Amount

Description

Prepaid Asset or Expense

500.00

Asset or expense is half paid

Tax

50.00

Tax at 10% on asset or expense fully paid

Liability

550.00

Prepaid with tax

The following table shows the accounting entries in USD currency for the payment of the Payables prepayment invoice.


Account

Debit Amount

Credit Amount

Liability

550.00

Cash

550.00

Tax Register for Prepayment Invoice

Using the accounting entries created in this example, the Tax Register with the tax at 10% appears as:


Transaction Number

Transaction Class

Taxable Amount

Recoverable Tax Amount

Nonrecoverable Tax Amount

AP-Inv-Test10

Invoice (prepayment)

500.00

50.00

0.00

Oracle Fusion Payables Invoice

The following table shows an example of the accounting entries in USD currency for a Payables invoice including the previously established prepayment. The example invoice number is AP-Inv-Test20.


Account

Debit Amount

Credit Amount

Description

Asset or Expense

1000.00

Invoice amount

Tax

50.00

Tax at 10% on balance of invoiced amount

Liability

550.00

Liability for balance of invoiced amount

Prepaid Asset or Expense

500.00

Reverse prepaid asset or expense

Tax Register

Using the accounting entries created in this example, the Tax Register with the tax at 10% appears as:


Transaction Number

Transaction Class

Taxable Amount

Recoverable Tax Amount

Nonrecoverable Tax Amount

AP-Inv-Test20

Invoice

500.00

50.00

0.00

Reporting Offset Taxes in the Tax Register: Example

The following scenario illustrates how the Tax Register displays offset taxes in Oracle Fusion Payables.

Oracle Fusion Payables Prepayment Invoice

The following table shows the accounting entries in USD currency for the Payables invoice. The example invoice number is AP-Inv-Test30.


Account

Debit Amount

Credit Amount

Description

Expense

1000.00

Net amount 600.00 taxed at 10%

Output Tax

100.00

Output tax at 10%

Liability

1000.00

Input Tax

100.00

Input tax at 10%

Tax Registers

Using the accounting entries created in this example, the Output Tax Register with the tax at 10% appears as:


Transaction Number

Transaction Class

Taxable Amount

Recoverable Tax Amount

Nonrecoverable Tax Amount

AP-Inv-Test30

Invoice

1000.00

100.00

0.00

Using the accounting entries created in this example, the Input Tax Register with the tax at 10% appears as:


Transaction Number

Transaction Class

Taxable Amount

Recoverable Tax Amount

Nonrecoverable Tax Amount

AP-Inv-Test30

Invoice

1000.00

-100.00

0.00

Reporting Input Taxes in the Tax Register in Primary and Secondary Ledger Currency: Example

The following scenario illustrates the reporting for primary and secondary ledger currency in the Tax Register. This example could apply to all general tax and global reports as well.

Oracle Fusion Payables Invoice

In this example assume the following setup is in place:

  • The primary ledger currency is EUR.

  • The secondary ledger currency is USD.

  • The corporate currency exchange rate is 1.2.

The following table shows the accounting entries in EUR currency for the Payables invoice AP-Inv-Test5. The invoice is accounted.


Account

Debit Amount

Credit Amount

Description

Expense

100.00

Net expense amount taxed at 20%

Tax

20.00

Tax at 20%, fully recoverable

Liability

120.00

Interim tax at 20%

The following table shows the accounting entries in EUR currency for the Payables invoice AP-Inv-Test6. The invoice is validated, but not accounted.


Account

Debit Amount

Credit Amount

Description

Expense

200.00

Net expense amount taxed at 20%

Tax

40.00

Tax at 20%, fully recoverable

Liability

240.00

Interim tax at 20%

Tax Registers

The Tax Register is run for the primary ledger in EUR currency. The output from the Tax Register for the tax at 20% in which the transaction is within the period range entered for the report is:


Transaction Number

Transaction Class

Taxable Amount

Tax Amount

AP-Inv-Test5

Invoice

100.00

20.00

AP-Inv-Test6

Invoice

200.00

40.00

The Tax Register is run for the secondary ledger for USD currency. The output from the Tax Register for the tax at 20% in which the transaction is within the period range entered for the report is:


Transaction Number

Transaction Class

Taxable Amount

Tax Amount

AP-Inv-Test5

Invoice

120.00

24.00

When you run the Tax Register for the secondary ledger, invoice AP-Inv-Test6 is not reported because it is not accounted and does not have a representation in the subledger accounting tables. These tables are the source for the Tax Register report, when the report is run for the secondary or reporting ledger currency.

FAQs for Prepare Transaction Tax Reports

How are adjustments reported in the US Sales Tax Report when no tax rate specific to the tax jurisdiction exists?

When invoice adjustments are created against invoice lines and no tax rate specific to the tax jurisdiction exists, the tax lines for the adjustment do not get reported in the US Sales Tax Report.

For adjustments to be reported correctly in the US Sales Tax Report, the tax jurisdictions must be associated with a corresponding tax rate defined specific to the jurisdiction.

FAQs for Manage Intrastat Transactions

Can I edit all the details for an Intrastat transaction?

Yes. All the details for an Intrastat transaction can be edited on Manage Intrastat Transactions page.

What happens if I do not update an attribute for the transactions selected for edit?

Neither is the attribute updated with any value, nor is the current value deleted.

What happens if I validate a transaction?

When a transaction is selected for validation, validation checks are performed on it based on the rules applicable for the Legal Reporting Unit. After the validation checks are performed, the transaction is set to one of the following three validation statuses:

  • Not validated: The transaction has not yet been validated

  • Error: The transaction contains exceptions indicated by the number in the Exceptionscolumn

  • Validated: The transaction is validated

Note

Only validated transactions can be reported in the declaration.