Tax Locations and Rates
Use the Tax Locations and Rates window to enter and update your locations and their associated tax rates. For each location you can define multiple tax rates and postal code ranges, as long as the date and postal code range do not overlap. Receivables uses these locations and tax rates to create authorities and sales tax rates for tax calculations. Receivables also uses locations to validate your customers' addresses.
Use this window to assign tax accounts to the components of your segment which has a tax account qualifier assigned to it. You assign a tax account qualifier to any one segment of your location flexfield structure using the Key Flexfield Segments window.
You can also implement country-specific validation of foreign customer address information using the Flexible Address Formats feature. For more information, see: Flexible Addresses.
If you do not want to manually enter or maintain location and tax rates, you can use the Sales Tax Rate Interface program to load this information from an outside tax service. See: Using the Sales Tax Rate Interface and Implementing the Tax Vendor Extension.
Prerequisites
Assign the tax account qualifier to any one of the segments of your location flexfield structure in the Define Key Flexfields window (Oracle Applications Flexfields Guide)
To define a new or update an existing tax location and its associated tax rate:
1. Navigate to the Tax Locations and Rates window.
2. Choose the type of sales tax structure to define. Choose City, County, or State.
3. If you chose a sales tax structure of 'County,' enter the Given State in which this county is located, then choose Find.
If you chose a sales tax structure of 'City,' enter the Given County in which this city is located, then choose Find.
If you chose a sales tax structure of 'State,' choose Find.
4. To update an existing location or rate, update the Tax Account, Tax Rate, and range of Effective Dates or Postal Codes for this location, then go to step 10.
To add a new location, choose New Record from the Edit menu.
5. Enter the Name and Description of this location.
6. If this segment has been assigned to the tax account qualifier, Receivables enters a default Tax Account. This is the account you defined for the 'Location' tax code type in the Tax Codes and Rates window. You can update this information.
7. Enter the Tax Rate percentage to assign to this location (optional). You can enter multiple tax rates for this location as long as the date and postal code range do not overlap. Receivables uses the date and postal code range for each tax rate assignment to determine when this assignment is active for this location.
8. If you are entering city level rate assignments and you include City in your tax location flexfield structure, you can optionally override the sales tax rates for the senior segments (State and/or County) of this structure. To override the sales tax rate for this city's state or county, enter a new rate in the Override Sales Tax Rates popup window. See: Defining a Sales Tax Location Flexfield Structure.
Attention: You can only use the override feature if you include City in your Sales Tax Location Flexfield Structure.
9. Enter a range of Effective Dates for this tax rate. The default start date is today's date, but you can change it. If you do not enter an end date, this tax rate will be valid indefinitely.
10. Enter a range of Postal Codes for this tax rate. Receivables uses the date and postal code range for your locations to determine which tax rate assignments to use when creating your sales tax rates. You can review these compiled sales tax rates in the Review Sales Tax Rates window.
See Also
Reviewing Sales Tax Rates
Tax Codes and Rates
Tax Exemptions
Calculating Tax
Sales Tax Listing
U.S. Sales Tax Report
