This table provides a checklist of the mandatory and optional implementation steps in other applications for E-Business Tax. Some optional implementation steps may be conditionally mandatory, depending on your overall setup.
Note: You must have access to the system administrator responsibility to perform many of these tasks.
| Step Number | Step Description | Mandatory/Optional |
| 1 | Setting Up Tax Users | Optional |
| 2 | Setting Profile Option Values | Optional |
| 3 | Setting Up Lookup Codes | Optional |
| 4 | Setting Up TCA Geography Hierarchy | Optional |
| 5 | Setting Up Legal Entity | Mandatory |
| 6 | Setting Up Operating Units | Mandatory |
| 7 | Setting Up Accounts and Accounting Information | Mandatory |
| 8 | Setting Up TCA Classifications | Optional |
| 9 | Setting Up Oracle Inventory | Optional |
Set up your tax users and assign each user a tax-related responsibility. Oracle E-Business Tax provides these seeded responsibilities:
Tax Manager. Assign this responsibility to users who will set up and maintain tax configuration data. The tax manager responsibility is the responsibility with the highest level of access to E-Business Tax functionality.
If you want to include the GL Tax Options window, you must assign a data access set to the GL: Data Access Set profile option under the Tax Manager responsibility.
Tax Administrator. Update and assign this responsibility to users who will provide E-Business Tax technical setup and support services. You can update this responsibility according to the duties of each tax administrator user.
Oracle Tax Simulator. Assign this responsibility to users who test tax setups with the Oracle Tax Simulator.
You can also set up new E-Business Tax menus and responsibilities according to your requirements.
Related Topics
Responsibilities Window, Oracle Applications System Administrator's Guide – Security
Users Window, Oracle Applications System Administrator's Guide – Security
Menus Window, Oracle Applications System Administrator's Guide – Security
Data Access Sets, Oracle General Ledger Implementation Guide
Set values for E-Business Tax profile options to control the availability of certain tax options and to maintain your Vertex or Taxware installation.
The table in this section summarizes E-Business Tax profile option information:
The Default column displays either the default profile option value in italics, or No Default if none exists.
The User Access column indicates whether you can view or update the profile option.
The System Administration: Site, Application, Responsibility, and User columns indicate at which levels the system administrator can update these profile options.
The key for this table is:
Update: You can update the profile option.
View Only: You can view the profile option but cannot change it.
No Access: You cannot view or change the profile option.
| Profile Option | Default | User Access | System Administration: Site | System Administration: Application | System Administration: Responsibility | System Administration: User |
|---|---|---|---|---|---|---|
| eBTax: Allow Ad Hoc Tax Changes | Yes | No Access | Update | Update | Update | No Access |
| eBTax: Allow Manual Tax Lines | Yes | No Access | Update | Update | Update | No Access |
| eBTax: Allow Override of Customer Exemptions | Yes | No Access | Update | Update | Update | No Access |
| eBTax: Allow Override of Tax Classification Code | Yes | No Access | Update | Update | Update | No Access |
| eBTax: Allow Override of Tax Recovery Rate | No Default | No Access | Update | Update | Update | No Access |
| eBTax: Inventory Item for Freight | Freight Charge | No Access | Update | Update | Update | No Access |
| eBTax: Invoice Freight as Revenue | No | No Access | Update | Update | Update | No Access |
| eBTax: Read/Write Access to GCO Data | Yes | No Access | Update | Update | Update | No Access |
| eBTax Taxware: Service Indicator | Non-Service | View Only | Update | No Access | No Access | No Access |
| eBTax Taxware: Tax Selection | Jurisdiction and Tax | View Only | Update | No Access | No Access | No Access |
| eBTax Taxware: Use Nexpro | No | No Access | Update | No Access | No Access | No Access |
| eBTax Vertex: Case Sensitive | Yes | View Only | Update | No Access | No Access | No Access |
The eBTax: Allow Ad Hoc Tax Changes profile option controls which users can make ad hoc tax changes on the transaction line, such as selecting a different tax status or tax rate. The changes that a user can make also depend upon the details of the applicable tax setups.
If the tax rate associated with a tax has the Allow Ad Hoc Rate option enabled, then users can override the calculated tax rate on the transaction line.
See: Setting Up Tax Rates, Oracle E-Business Tax User Guide for more information.
The eBTax: Allow Manual Tax Lines profile option controls which users can enter manual tax lines on the transaction for the tax setups that allow this update.
If the tax configuration has the related options enabled, then users can enter manual tax lines on the transaction for the applicable tax.
The related tax setups are:
Taxes: Allow Entry of Manual Tax Lines
Configuration Owner Tax Options:
Allow Entry of Manual Tax Lines
Allow Manual Tax Only Lines
The eBTax: Allow Override of Customer Exemptions profile option controls the display of the Tax Handling field on the transaction line. You use the Tax Handling field to apply and update customer tax exemptions to transactions.
If you set the eBTax: Allow Override of Customer Exemptions profile option to Yes, you must also complete the related setups for tax exemptions.
The eBTax: Allow Override of Tax Classification Code profile option controls whether users can update the tax classification code that is defaulted to the transaction line.
E-Business Tax defaults the tax classification code to the transaction line according to the defaulting hierarchy defined for the operating unit and application. See: Using Application Tax Options, Oracle E-Business Tax User Guide for more information.
The eBTax: Allow Override of Tax Recovery Rate profile option controls which users can enter or update the calculated tax recovery rates on the transaction for the tax recovery rate setups that allow this update.
If the tax recovery rate associated with a tax has the Allow Ad Hoc Rate option enabled, then users can override the calculated tax recovery rate on the transaction.
The meaning of ad hoc entry of tax recovery rates differs according to the source application for the transaction:
Payables - The user can only select another previously defined recovery rate for the tax.
Procurement - The user can either select another previously defined recovery rate for the tax or enter a new recovery rate.
See: Setting Up Tax Recovery Rates, Oracle E-Business Tax User Guide for more information.
The eBTax: Inventory Item for Freight profile option lets Order Management use an Inventory item defined as Freight on Receivables transaction lines. You can use the freight Inventory item to control the tax rate on taxable freight amounts.
The values for this profile option are:
Freight Charge - The freight Inventory item applies to external Receivables transactions.
Freight for Intercompany - The freight Inventory item applies to internal Receivables transactions only.
You must also set the eBTax: Invoice Freight as Revenue profile option to Yes.
Note: You may also need to set the OE: Item Validation Organization profile option.
The eBTax: Invoice Freight as Revenue profile option controls whether to consider freight amounts as taxable line items.
Set the eBTax: Invoice Freight as Revenue profile option to Yes, if you are required to tax freight amounts. The freight amounts entered in the Order Management Ship Confirm window are then passed to Receivables transactions as taxable line items.
If you set the eBTax: Invoice Freight as Revenue profile option to Yes, you must also set the eBTax: Inventory Item for Freight profile option.
The eBTax: Read/Write Access to GCO Data profile option controls whether users can set up tax configuration data for the global configuration owner.
If you set the eBTax: Read/Write Access to GCO Data profile option to Yes, then the applicable users can set up taxes and related configuration data for the global configuration owner. Legal entities and operating units can then share the global configuration owner tax setups.
See: Configuration Options in Oracle E-Business Tax, Oracle E-Business Tax User Guide for more information.
The eBTax Taxware: Service Indicator profile option indicates whether taxes are calculated on service or a rental transactions.
The Taxware API parameter that accepts this profile option value is JurLink.ServInd.
The values for this profile option are:
Service - Service transaction.
Rental - Rental transaction.
Space - Non-service transaction.
The eBTax Taxware: Tax Selection profile option indicates whether Taxware uses jurisdiction-level jurisdiction codes to calculate taxes.
The Taxware API parameter that accepts this value is TaxSelParm of Taxfn_Tax010.
The values for this profile option are:
Tax only - Taxware calculates tax based on the ship-to address only.
Jurisdiction and Tax - Taxware calculates tax based on all jurisdiction information, including ship-to, ship-from, point of order origin (POO), and point of order acceptance (POA).
The eBTax Taxware: Use Nexpro profile option indicates whether Taxware uses the Nexpro functionality. If you enable this option, additional configuration is required on the Taxware side of the integration to achieve nexus-based taxation.
The Taxware API parameter that accepts this value is TaxLink.UseNexproInd.
See: Technical Reference, Oracle E-Business Tax: Vertex Q-Series and Taxware Sales/Use Tax System Implementation Guide for information about the Nexpro functionality.
the eBTax Vertex: Case Sensitive profile option enables case-sensitive searches of Vertex tax calculation data. The default value is Yes.
Set this profile option if you intend to use Vertex to calculate tax on transactions.
Use the Application Object Library Lookups window to maintain existing lookup codes and define additional lookup codes for E-Business Tax lookup types.
Note: E-Business Tax does not perform validation on updated or disabled lookups. If you want to disable, update, or apply an end date to an E-Business Tax lookup type, please ensure that the applicable values are not in use in the E-Business Tax setup.
Use the ZX_INPUT_CLASSIFICATIONS and ZX_OUTPUT_CLASSIFICATIONS lookup types to create tax classification codes for use in tax determination.
Release 11i tax codes and tax groups migrate to E-Business Tax as tax classification codes. Payables and Purchasing tax codes migrate as tax classification codes under ZX_INPUT_CLASSIFICATIONS. Receivables and Projects tax codes migrate as tax classification codes under ZX_OUTPUT_CLASSIFICATIONS. You can set up additional tax classification codes for use with a migrated tax data model or as an additional determining factor in tax determination. When you create additional tax classification codes they are automatically available in both ZX_INPUT_CLASSIFICATIONS and ZX_OUTPUT_CLASSIFICATIONS lookup types.
Use the ZX_WEB_EXP_TAX_CLASSIFICATIONS lookup type to create tax classification codes for use in tax determination for transactions originating from Internet Expenses.
Use the ZX_EXEMPTION_REASON_CODE lookup to create exemption reason lookup code for use in tax exemptions. The exemption reason is a user-defined code that lets you monitor the use of customer or product tax exemptions issued by the tax authority and applied to specific transactions.
When you set up a tax exemption, you can use the exemption reason to identify the reason for this exemption or to monitor a customer's application for an exemption. At transaction time, E-Business Tax only considers certain tax exemptions if the exemption reason and certificate number entered on the transaction line match the exemption definition.
Use the ZX_JEBE_VAT_TRANS_TYPE lookup type to create tax transaction types for use with tax rate codes. You use transaction types when you set up a tax rate.
Tax rate transaction types represent local tax authority codes both for reporting purposes and for controlling which rates appear on an invoice. See: Setting Up Tax Rates, Oracle E-Business Tax User Guide for more information.
Use the ZX_REGISTRATIONS_REASON lookup type to create tax registration reason codes. You use registration reason codes when you set up a tax registration to represent the reason for the tax registration.
The tax registration reason code is for tax reporting purposes only. See: Setting Up a Tax Registration, Oracle E-Business Tax User Guide for more information.
Use the ZX_REGISTRATIONS_TYPE lookup type to create tax registration type codes. You use tax registration type codes when you set up a tax registration to organize your tax registrations into categories.
E-Business Tax provides these seeded tax registration types: CNPJ; CPF; CUIL; CUIT; DNI; NIT; OTHERS; VAT. The tax registration types CPF, CNPJ, and OTHERS are used in tax registration number validation for Brazil. All other seeded tax registration types, and the tax registration types that you define, are for tax reporting purposes only.
See: Setting Up a Tax Registration, Oracle E-Business Tax User Guide for more information.
Use the ZX_REGISTRATION_STATUS lookup type to create tax registration status codes. You use tax registration status codes as determining factors in tax rules.
E-Business Tax provides these seeded tax registration types:
| Lookup Code | Description |
|---|---|
| Agent | The company acts as a withholding agent for the tax authority for the applicable tax. |
| Registered | The company is registered for the applicable tax. |
| Not Registered | The company is not registered for the applicable tax. |
See: Setting Up Tax Rules, Oracle E-Business Tax User Guide for more information.
Use the ZX_TAX_TYPE_CATEGORY lookup type to create tax types. You use tax types when you set up a tax.
You can use tax types to classifies taxes for tax reporting purposes. See: Setting Up Taxes, Oracle E-Business Tax User Guide for more information.
The ZX_TAX_TYPE_CATEGORY lookup type contained these seeded tax types:
| Lookup Code | Description |
|---|---|
| Sales | Direct taxes that are collected from the consumer by the supplier and paid to the tax authority. |
| VAT | Value added or cascading taxes. |
| Excise | Taxes on the production and manufacture of goods. |
| Customs Duty | Taxes charged on imported and exported products. |
| Environmental | Taxes charged as a result of environmental regulations. |
Set up and maintain the TCA geography hierarchy for each country where you have a tax requirement. The TCA geography hierarchy provides a single reference source for all geographical and location-based information for all E-Business Suite applications.
You use the TCA geography hierarchy in these cases:
Taxes that are levied at a level lower than the country level, for example, state or provincial taxes.
Tax characteristics, such as the tax rate, vary at a lower level than the country level.
You must set up and maintain the TCA geography hierarchy before you can perform these tax-related setups:
Legal entities and establishments - Enter and maintain location information for first party legal entities and the first party legal establishments. See: Setting Up Legal Entity for more information.
Tax zones - Set up tax zones to represent regions according to a tax requirement. Tax zones let you group together regions otherwise separated by geographical or political boundaries where a tax treatment is identical throughout these regions. See: Setting Up Tax Zones, Oracle E-Business Tax User Guide for more information.
Tax regimes - Set up tax regimes for a country or tax zone. See: Setting Up Tax Regimes, Oracle E-Business Tax User Guide for more information.
Taxes - Set up taxes and specify the geographical level where each tax applies, such as a city tax or a county tax. See: Setting Up Taxes, Oracle E-Business Tax User Guide for more information.
Tax jurisdictions - Set up tax jurisdictions for a tax using geographies or tax zones. See: Setting Up Tax Jurisdictions, Oracle E-Business Tax User Guide for more information.
Tax rules - Use the Geography determining factor class to set up determining factor sets that use geographical locations in tax rules. Use the User Defined Geography determining factor class to set up determining factor sets that use tax zones in tax rules. See: Setting Up Tax Determining Factor Sets, Oracle E-Business Tax User Guide for more information.
Use TCA administration to maintain these aspects of the geography hierarchy:
Country structure - Set up and maintain the hierarchical structure of a country. The structure begins with the largest geography type and ends with the smallest geography type. For example, the United States structure is: State > County > City > Postal Code.
Geography types - TCA provides seeded geography types for certain countries. The geography types are used to create the geographical hierarchy of a country. Perform these tasks for geography types:
If necessary, set up new geography types in accordance with the structure of a country.
Set up and maintain aliases for specific Geography elements. An alias is an alternative name for a geography type. You can use aliases as a part of your address validation.
Define the contents of a geography type within the context of a country structure, for example, the states belonging to the United States or the provinces belonging to Canada.
Address validations - Set up mappings and validations between country address formats and the TCA geography hierarchy. TCA uses the definitions you provide to validate an address entry against the geography hierarchy. You use address validation for taxes levied below the country level to verify that it is a valid address for tax purposes.
For example, set up a list of Canadian provinces to verify each applicable address against a valid province for the correct handling of Canadian PST.
Enable both the Geography Validation and Tax Validation options for each level for which you need to create tax jurisdictions.
Related Topics
Setting Up Real-Time Address Validation, Oracle Trading Community Architecture Administration Guide
Administrating Geography Hierarchy, Oracle Trading Community Architecture Administration Guide
Geography Name Referencing Process, Oracle Trading Community Architecture Administration Guide
Use the Legal Entity Configurator to set up these parties:
First party legal entity - The legal entities that represent your company.
First party legal establishments - The legal establishments that have or require tax registrations, either implied or explicit, from one or more tax authorities.
Legal authorities - The legal authorities that represent the tax authorities in the tax regimes where you do business.
When you set up a legal entity or establishment, you can also set up party tax profile details, including general information, rounding rule, and tax registrations. See: Party Tax Profiles in Oracle E-Business Tax, Oracle E-Business Tax User Guide for more information.
If you set up country default controls for the countries where you do business, then the applicable tax regime and tax values default to the legal establishment tax registration record. See: Setting Up Country Default Controls, Oracle E-Business Tax User Guide for more information.
Set up the legal entities that represent your company. You must set up your company as a legal entity before you can perform these tax-related setups:
Party tax profiles - Party tax profiles contain the information that relates to a party's transaction tax activities, and identify the legal entity to the tax authorities. See: Setting Up a First Party Tax Profile, Oracle E-Business Tax User Guide for more information.
Configuration options - Configuration options indicate the tax regimes to which the legal entity is subject. For each tax regime/legal entity assignment, the configuration option also defines the way in which the legal entity uses tax configuration data for the regime. See: Setting Up Configuration Options, Oracle E-Business Tax User Guide for more information.
Configuration owner tax options - Configuration owner tax options let you set specific transaction tax processing and control options for a combination of configuration owner and application event class. See: Setting Up Configuration Owner Tax Options, Oracle E-Business Tax User Guide for more information.
When you set up legal entities for your company, set the Transacting Entity option to Yes. See: Creating a Legal Entity, Oracle Financials Implementation Guide for more information.
After you set up legal entities, set up the legal establishments that belong to the legal entity.
Set up a legal establishment record for each office, service center, warehouse and any other location within the company that requires a registration with a tax authority for one or more taxes. You set up legal establishments under a parent legal entity.
When you set up legal establishments, you can also perform these tax-related setups:
Party tax profiles - Set up a party tax profile for each legal establishment. You can set up certain details of the party tax profile when you create the legal establishment. See: Setting Up a First Party Tax Profile, Oracle E-Business Tax User Guide for more information.
Tax registrations - Set up tax registrations for each legal establishment. Depending on the applicable tax requirements, you may need to set up more than tax registration for an establishment. You must complete additional setup in E-Business Tax to set up a tax registration. See: Setting Up a Tax Registration, Oracle E-Business Tax User Guide for more information.
Use the Associate Business Entities region to link a tax-related business entity to a legal establishment. See: Creating Establishments, Oracle Financials Implementation Guide for more information.
Set up a legal authority record for each tax authority that administers taxes in a tax regime where you do business. While not mandatory, you can set up legal authority records before you perform these tax-related setups:
Tax authority tax profile - Set up tax authority tax profiles for your collecting, reporting, and issuing tax authorities. A collecting tax authority manages the administration of tax remittances. A reporting tax authority receives and processes all company transaction tax reports. An issuing tax authority issues tax registration numbers and tax exemption certificates. See: Setting Up a Tax Authority Tax Profile, Oracle E-Business Tax User Guide for more information.
Basic tax configuration - The collecting and reporting tax authorities appear in the corresponding list of values on these tax configuration setups:
Tax regimes
Taxes
Tax jurisdictions
Tax registrations - Enter the tax authority responsible for issuing the legal establishment tax registration number. Update the collecting and reporting tax authorities that default from the tax jurisdiction record. See: Setting Up a Tax Registration, Oracle E-Business Tax User Guide for more information.
Tax exemptions - Enter the tax authority that issues the tax exemption certificate. See: Setting Up Tax Exemptions, Oracle E-Business Tax User Guide for more information.
When you set up a legal authority, set the Legislative Category to Transaction Tax. See: Creating and Updating Legal Authorities, Oracle Financials Implementation Guide for more information.
If you apply an end date to a legal entity or legal establishment, you must manually apply the same end date to any related E-Business Tax entities that refer to the legal entity or establishment.
Legal entities - Apply an end date to the related tax reporting types, party classifications, and configuration options.
Legal establishments - Apply an end date to the related tax reporting types, party classifications, and tax registrations.
Set up the operating units that you need to process your tax transactions. An operating unit is an organization that uses Oracle Cash Management, Order Management and Shipping Execution, Oracle Payables, Oracle Purchasing, or Oracle Receivables.
For tax-related transactions:
Assign users to responsibilities associated with the operating units for the applicable applications.
Assign user to an E-Business Tax responsibility. See: Setting Up Tax Users for more information.
Assign operating units to the applicable primary ledgers. See: Setting Up Accounts and Accounting Information.
You must set up and maintain operating units before you can perform these tax-related setups:
Party tax profiles - Set up a tax profile for each operating unit. The tax profile indicates that the operating unit either uses the tax configuration of the legal entity for transactions involving the legal entity and tax regime, or acts as a configuration owner for the applicable tax regime. See: Setting Up an Operating Unit Tax Profile, Oracle E-Business Tax User Guide for more information.
Tax configuration options - Set up configuration options for applicable operating units when you set up a tax regime or a party tax profile. The configuration option associates the operating unit with tax regimes either to share the tax setup of the global configuration owner or to act as a configuration owner and maintain a separate tax setup. See: Configuration Options in Oracle E-Business Tax, Oracle E-Business Tax User Guide for more information.
Tax accounts - You can set up tax accounts for a single operating unit, or you can share tax accounts across multiple operating units. The accounting segments associated with the selected operating units are available for tax account purposes. The calculated tax amounts post to the operating unit accounts that you define. See: Setting Up Tax Accounts, Oracle E-Business Tax User Guide for more information.
Configuration owner tax options - Set up configuration owner tax options for a combination of operating unit configuration owner and application event class. The configuration owner tax option settings let you modify the manner in which tax data is configured. See: Setting Up Configuration Owner Tax Options, Oracle E-Business Tax User Guide.
You can set up operating units using Oracle Human Resources, Oracle Inventory, or Oracle General Ledger. The setup of operating units requires a number of prerequisite setups. The number and kind of prerequisite setups depends upon your organization and your tax implementation.
Related Topics
Updating Establishments, Oracle Financials Implementation Guide
Set up accounts and accounting information for your tax transactions. You must set up and maintain accounting information before you can set up tax accounts for the applicable operating units. You set up tax accounts by operating unit for taxes, tax rates, tax jurisdictions, tax recovery rates, and tax registrations of first party legal establishments. See: Setting Up Tax Accounts, Oracle E-Business Tax User Guide for more information.
Review and complete these accounting setup tasks according to your requirements:
Ledgers - Set up the chart of accounts, accounting calendar and currency for the primary ledger of your legal entities and, if applicable, any secondary ledgers.
Legal entity balancing segments - Define balancing segment values for the legal entities involved in tax transactions.
Accounting setup - Create an accounting setup for each legal entity with the ledger or ledgers that you created, and assign the applicable operating units to the primary ledger.
Complete the accounting setup - Complete the details of the accounting setups.
Related Topics
Setting Up General Ledger, Oracle General Ledger Implementation Guide
Creating Accounting Setups, Oracle Financials Implementation Guide
Oracle supports open interface programs for importing data from any third party system.
An import program is a program that is written to convert data from a third party system into a standard data format that the interface program can read and load into the Oracle E-Business Suite. Once the import data is loaded into the interface tables, you can run the Oracle interface programs to validate the data and insert it into the Oracle tables.
The type of feeder program (program that loads the data into interface tables) depends on the environment from which the data is imported. For example, use SQL*Loader, SQL*Report, PL/SQL, or C to write an import program to import data from a non-Oracle system.
In prior releases, customers could only upload the following tax related information for customers using RA_CUSTOMERS_INTERFACE_ALL:
Tax_reference (tax registration number)
Country_code (country in which the customer is registered)
Oracle now provides the functionality to import complete customer tax information. This section describes the process for importing customer tax information through the following interface tables:
Party Tax Profile Info (ZX_PARTY_TAX_PROFILE_int)
Registrations (ZX_REGISTRATIONS_int)
Exemptions (ZX_EXEMPTIONS_int)
Reporting Code Association (ZX_REPORT_CODES_ASSOC_int)
In addition to these interface tables, tax information can also be provided in RA_CUSTOMERS_INTERFACE_ALL. Refer to the Oracle Trading Community Architecture Reference Guide and the Oracle Trading Community Architecture User Guide for the detailed process of importing a customer’s data, including the following tax related information:
Fiscal Classifications (HZ_CODE_ASSIGNMENTS)
Account Tax Details (HZ_CUST_ACCOUNTS)
Account Site Tax Details (HZ_CUST_SITE_USES_ALL)
Note: For more information refer to Note 1330744.1 on My Oracle Support, Importing Customer Tax Information in R12 Oracle E-Business Tax, which contains detailed table information and sample output.
The tax information for customers can be imported at the customer-level (third party) or customer site-level (third party site).
After inserting the data in the customer and tax interface tables, the Customer Interface program should be submitted for inserting the data in the Oracle production tables. The Customer Interface program validates the data that is loaded in Customer Interface tables by ensuring that the columns in the interface tables reference the appropriate values and columns in the rest of the system. The data that is inserted in Tax Interface is also validated using the same program.
Using the Customer Interface program, the tax information can be imported for the new customers and sites only. Update is currently not supported.
The following scenarios are covered in this section:
Importing Tax Information at the Customer-level and Site-level along with the Customer Account
Importing Tax Information for the Account-level and Account Site-level
To import customer tax information for new customers and sites that are created by the Customer Interface program, the tax related information must be populated into the appropriate interface tables at the same time as importing party information. Customers should populate the interface tables zx_party_tax_profile_int, zx_registrations_int, zx_exemptions_int, zx_report_codes_assoc_int with the tax related information to be uploaded for customers and sites for its associated entities, which are party tax profile info, registrations, exemptions, and reporting code associations respectively. If there is any exception while inserting the tax information due to error in tax data (ptp information or any of its child entities such as registrations, exemptions, and reporting code associations), that customer and site are not imported. In addition, tax interfaces are optional during import. If no values are provided in the previously listed ZX interface tables, the Party Tax Profile is created for the customer or site with the default values for ZX_PARTY_TAX_PROFILE_INT.
To import tax information at the customer-level (third party) and the site-level (third party site) for a new customer:
Enable system profile: HZ: Import Tax Details Using Customer Interface.
Insert the customer data in the interface table: RA_CUSTOMERS_INTERFACE_ALL.
Insert primary keys in the table as applicable: RA_CUSTOMERS_INTERFACE_ALL.
To identify the party_id for the corresponding party for which the tax information is provided in zx_party_tax_profile_int, the following fields in the listed order are used in conjunction with party_type_code:
Intf_Party_reference (must be same as orig_system_party_ref or orig_system_customer_ref as given in RA_CUSTOMERS_INTERFRACE_ALL)
Intf_Party_reference and Intf_Party_site_reference (must be same as orig_system_party_ref or orig_system_address_ref as given in RA_CUSTOMERS_INTERFACE_ALL)
These columns are used to link the customer with the respective profile.
Insert the customer/site tax information data in the interface tables:
zx_party_tax_profile_int
zx_registrations_int
zx_exemptions_int
zx_report_codes_assoc_int
Note: For importing tax related information of a party, it is mandatory for customers to populate data into the Party Tax Profile (zx_party_tax_profile_int) interface table. Inserting data only into the child tables such as zx_registrations_int, zx_exemptions_int, zx_report_codes_assoc_int is not sufficient for processing.
While inserting the data in the table zx_party_tax_profile_int, the primary keys previously mentioned should be provided with the value from its corresponding customers interface. The tieback between zx_party_tax_profile_int and child entities is intf_ptp_reference, which must be populated when importing registrations, exemptions, or reporting code associations.
Run the Customer Interface program.
Note: For more information refer to Note 1330744.1 on My Oracle Support, Importing Customer Tax Information in R12 Oracle E-Business Tax.
Use the following to troubleshoot any errors that may occur:
When any tax related attribute at the customer-level or the site-level fails, then the complete record, such as customer and any child entity is also not inserted.
Tax Errors Summary are shown with the TCA Error Summary. Tax Details are shown entity-wise after the TCA Detail Error.
Information related to HZ_CODE_ASSIGNMENTS (Fiscal Classification) HZ_CUST_ACCOUNTS (Account Tax Details), HZ_CUST_SITE_USES_ALL (Account Site Tax Details) are owned by TCA. TCA shows the information in the summary and detail formats.
If an error is related only to customer, then there is not any information in site reference. Category is populated for all errors.
The tax information is assigned at the customer account-level and site-level.
After successful import of customer with the tax information, the following operations are performed on the production tables depending on the corresponding data inserted in the interface:
| Object Name | Object Type | Insert |
| ZX_PARTY_TAX_PROFILE | Insert | X |
| ZX_REGISTRATIONS | Insert | X |
| ZX_EXEMPTIONS | Insert | X |
| ZX_REPORT_CODES_ASSOC | Insert | X |
To import tax information for the account-level and the account site-level:
Enable system profile: HZ: Import Tax Details Using Customer Interface. By default, the value is No.
Insert the customer data in the interface table RA_CUSTOMERS_INTERFACE_ALL.
Customers populates the new columns cust_tax_header_level_flag, cust_tax_rounding_rule, site_use_tax_header_level_flag, site_use_tax_rounding_rule, site_use_tax_classification, fiscal_class_category, fiscal_class_code added to RA_CUSTOMERS_INTERFACE_ALL with the tax related information to be uploaded for customers and customer sites for its associated entities.
Run the Customer Interface program.
Note: For more information refer to Note 1330744.1 on My Oracle Support, Importing Customer Tax Information in R12 Oracle E-Business Tax.
Set up TCA classifications to classify third parties for tax purposes. You can define a TCA class category and class codes specifically for use in tax determination. You can also use standard classifications, such as the US Standard Industrial Classification (SIC) codes, and assign these codes a party fiscal classification.
You must set up and maintain TCA classifications before you can perform these tax-related setups:
Party fiscal classifications - Set up party fiscal classifications for your customers and customer sites and suppliers and supplier sites. Party fiscal classifications let you classify the customer/customer site or supplier/supplier site according to categories you define for tax-related purposes. See: Setting Up Party Fiscal Classifications, Oracle E-Business Tax User Guide for more information.
Party tax profiles - Assign party fiscal classifications to third party tax profiles to use in tax determination for invoices associated with the party. See: Setting Up a Third Party Tax Profile, Oracle E-Business Tax User Guide for more information.
Tax rules - Use the Party Fiscal Classification determining factor class to set up determining factor sets for use in tax rules. The Party Fiscal Classification determining factor class uses the party fiscal classification type defined for a TCA classification to identify the parties involved in a transaction. See: Setting Up Tax Determining Factor Sets, Oracle E-Business Tax User Guide for more information.
Use TCA administration to set up and maintain classifications for use in party fiscal classifications:
Class category - Set up a class category to represent the party fiscal classification type. These rules apply to enabling class category options for use with fiscal classifications:
Allow Multiple Parent Codes - You cannot enable this option. E-Business Tax does not allow the class codes in a hierarchy to have multiple parents.
Allow Parent Code Assignment - You can enable this option. E-Business Tax lets you use the parent code to represent a class code within the hierarchy.
Allow Multiple Class Code Assignments - You can enable this option. E-Business Tax lets you assign more than one class code to the same entity within the hierarchy.
Class codes - Set up class codes under the class category to represent the detailed classifications that belong to this class category. When you set up a party fiscal classification using a TCA class category, the related class codes by default become party fiscal classification codes.
Related Topics
Classifications Overview, Oracle Trading Community Architecture Administration Guide
Administering Classifications, Oracle Trading Community Architecture Administration Guide
Use the Inventory Item Category functionality in Oracle Inventory to model product fiscal classifications. You can create either a single product fiscal classification type or a hierarchy of product fiscal classification types that matches the segments of the Inventory category.
You can either use existing Inventory category sets or set up new Inventory category sets for use with product fiscal classifications. After you set up Inventory item categories and associate them with product fiscal classifications, the corresponding product fiscal classification code defaults to the transaction line for any item that belongs to the inventory category set. See: Setting Up Product Fiscal Classifications, Oracle E-Business Tax User Guide for more information.
You can also specify a default Inventory category set for a given country. The Inventory category associated with the item for this default category set defaults to the transaction line. See: Setting Up Country Default Controls, Oracle E-Business Tax User Guide for more information.
To model Inventory item categories for product fiscal classifications, you create categories and category sets and associate product fiscal classification types to the Inventory item category set.
The Inventory setup tasks to model product fiscal classifications are:
Define Inventory Value Set
Define Inventory Item Category Structure
Define Category Set
Define Inventory Categories
Associate Inventory Items to Category Sets
You complete this setup task flow for each Inventory-based product fiscal classification type that you plan to define.
Define a value set with the value type that the segments of the item category structure will use. Select a value type for the product fiscal classification codes that you intend to define, for example, alphanumeric code or numeric codes.
Define a category structure for the Inventory category set that you will use to create product fiscal classification types. If you are modeling a hierarchical classification system, then create a segment for each level in the hierarchy.
Set subcategory segments as Not Required.
Define a category set for the category structure that you created. Use a naming convention that corresponds to the product fiscal classification type that you intend to create.
Define the values for each segment of the category structure. The values represent the product fiscal classification codes.
This is a sample representation of numeric codes for the Brazilian CNAE and NCM product fiscal classification:
| Structure | Category | Description |
|---|---|---|
| BR CNAE | 3901... | Polymers of ethylene, in primary forms |
| BR CNAE | 3901.10.10 | Linear polyethylene |
| BR CNAE | 3901.10.90 | Other |
Assign one or more Inventory categories belonging to the category set to the Inventory items that you intend to use on transactions.
After you set up an Inventory item category set, use E-Business Tax to set up one or more product fiscal classification types and associate them with the Inventory item category set. If you are setting up a hierarchy of product fiscal classification types, define the starting point and the number of digits that make up each level code value in the hierarchy. See: Setting Up Product Fiscal Classifications, Oracle E-Business Tax User Guide for more information.
Related Topics
Defining Categories, Oracle Inventory User's Guide
Defining Category Sets, Oracle INventory User's Guide