Implementing the Tax Vendor Extension
Receivables provides a Tax Vendor Extension to integrate external tax calculation programs with Oracle Applications. This Extension lets you provide for complex tax calculation needs while retaining the full power of Receivables to create and store all other tax data.
The Tax Extension is called whenever a tax rate is calculated by the Receivables Tax Engine. When implemented, the Tax Extension will return a tax rate or amount from the vendor program. Receivables will use this information to create the appropriate tax line(s) and related accounting information.
Note: If your Receivables installation uses multiple organizations (multi-org), the profile option Tax: Use Tax Vendor lets your system administrator control which users can call an installed third party application for tax calculations. The default value is Yes; this indicates that a user can call a third party application to calculate tax. See: Overview of Receivables Profile Options.
Sales Tax Rate Interface
Both Oracle Order Entry and Receivables provide an interface to load tax rates, zip code ranges, and location names from data files supplied by external vendors. This information is used by the Customers windows to validate addresses and create compiled sales tax data, whenever an address is updated or created.
Receivables provides two sample SQL*Loader control files: aravp.ctl and arvertex.ctl. These files will also load jurisdiction code data into Receivables AR_LOCATION_RATES table. Once loaded, the jurisdiction code data can be referenced by customizations to your tax database views.
Tax Database Views
Receivables provides database views to control which database columns are passed into the Tax Engine to calculate tax for your transaction lines.
Generic Tax Extension
The Tax Extension is called whenever a tax rate is calculated by the Receivables Tax Engine. Tax rates are calculated in the following windows and concurrent programs:
- Sales Orders window (Oracle Order Entry)
The Tax Extension can be implemented to generate single or multiple tax lines for every invoice line. Receivables will store each tax line in the RA_CUSTOMER_TRX_LINES table.
Calculating Multiple Tax Lines
The tax database views can be modified to return multiple tax lines per invoice line. This is useful, for example, if you need to create tax lines for each component of your Sales Tax Location Flexfield, rather than having a total rate for all the components.
Integration With Oracle Order Entry
The Receivables Tax Extension is fully integrated with Oracle Order Entry. At the time of order entry, the tax amount for an order or line is calculated by calling the Receivables Tax Engine. Consequently, if you have installed a Tax Vendor, it will be called to calculate tax on the order in the same way as on the invoice.
Note: Tax on an order is for information only and will be recalculated at the time of invoice creation. This is necessary because tax rates change over time and there could be a large gap between the order date and the invoice date.
See Also
Preparing Receivables
Commonly Asked Questions
