4Transaction Tax Reports
This chapter contains the following:
Prepare Transaction Tax Reports
Overview of Transaction Tax Reports
The Prepare Transaction Tax Reports activity helps you complete tax return processing, tax auditing and reconciliation. It provides you with operational, business, and reconciliation reports for tax activities associated with buying and selling of goods and services.
Tax reports support the following business functions:
-
Tax reporting
-
Tax auditing
-
Tax reconciliation
-
Tax planning
You can generate reports with comprehensive transaction information to create tax reports required by tax authorities and meet the internal reporting needs of the organization.
The following tax reports are provided:
-
Tax Register
-
Financial Tax Register
-
Tax Reconciliation Report
-
Tax Reconciliation by Taxable Account Report
-
Tax Audit Trail Report
-
Interim Tax Register
-
Tax Allocations Listing Report
-
Tax Allocation Exception Report
-
Tax Box Return Preparation Report
-
Sales Tax Report
Tax reporting is integrated with Oracle Fusion Tax. The main components of tax reporting solution are:
-
Centralized transaction tax reporting through the Tax Reporting Ledger
-
Common data models on which user-defined and specialized tax reports are prepared
Transaction Tax Report Features
Tax reporting is integrated with Oracle Fusion Tax and supports reporting of tax activities associated with buying and selling of goods and services. You can use various formats to satisfy the internal and external reporting needs of tax authorities, auditors, and corporate stakeholders.
Tax reports include the following features:
-
Flexible reporting levels
-
Reporting currency
-
Flexible reporting date range
-
Tax reporting types and tax reporting codes
-
Tax registers
Flexible Reporting Levels
Tax reporting supports three levels of reporting:
-
Ledger
-
Legal entity
-
Tax registration number
You can generate reports at any of these levels to meet the specific requirement of your audience. For example, create a tax report at the ledger level for reconciliation of tax accounts with the ledger postings.
For reporting to tax authorities, generate reports at the legal entity or tax registration number level. 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 lets you view all activities which you can report for a given legal entity, regardless of how internal business units are organized.
Reporting Currency
Multinational companies with complex setup of primary, secondary, and reporting ledgers must report in currencies other than the primary currency of a ledger. Use reporting currencies for handling reporting in currencies other than the primary currency of the ledger.
Flexible Reporting Date Range
You can report transaction tax details based on the following date ranges:
-
Tax point dates, for example, to report your tax liability to the tax authorities.
-
Accounting dates, for example, to reconcile with the general ledger.
-
Transaction dates, for example, to reconcile with the subledgers.
Tax Reporting Type and Tax Reporting Codes
You can use tax reporting types and tax reporting codes to group transaction tax details on the reports to meet legal or internal requirements.
Create reports based on a subset of transactions if you have implemented and assigned tax reporting types and tax reporting codes to your tax transactions. For example, you can create reports that list only self-billing invoices.
Tax Registers
Group transaction tax data based on the tax registers. The following tax register types are available for reporting:
-
Tax Register
-
Nonrecoverable Tax Register
Oracle Fusion Tax Predefined Reports
Oracle Fusion Tax provides operational, business, and reconciliation reports for tax activity associated with buying and selling goods and services through Oracle Fusion Payables and Oracle Fusion Receivables. Manual and imported tax transaction details also provide the source for the predefined tax reports.
Oracle Fusion Tax reporting also provides reporting data models on which you can prepare user-defined and specialized tax reports.
Before running the reports, ensure that you:
-
Set up the following entities:
-
Data Security
-
Geographies
-
Enterprise Structure
-
Tax Regime to Rate setup
-
Tax Party Profiles
-
Tax Rules
-
Suppliers
-
Procurement Business Function
-
Common Options for Payables
-
-
Set up a different tax account for each of your tax rates, based on your requirements. This task is optional. Different tax rates may share the same tax account.
You can schedule and run reports from the Scheduled Processes work area found on the Navigator.
For some tax reports, when you submit the job to run, the report logic calls the Tax Reporting Ledger. The Tax Reporting Ledger uses data extracted from the tax repository and other sources, where needed.
Tax Reports Based on the Tax Reporting Ledger
The following reports are based on the tax reporting ledger.
| Display Name | Description |
|---|---|
|
Tax Register |
Identifies total tax amounts by tax type, tax class, and company based on transactions created in Oracle Fusion Receivables, and manual and imported tax transactions from Oracle Fusion Tax. Includes deferred tax accounting information and all transactions for which tax accounting is defined. Groups data by tax registers: tax register and nonrecoverable tax register. Orders data by transaction number, customer name, or customer account number, and prints in summary or detail format. |
|
Financial Tax Register |
Prints tax and accounting information created from transactions entered in Oracle Fusion Receivables, Oracle Fusion Payables, and Oracle Fusion Tax (Tax Repository). Lists input tax data, output tax data, or both. Groups data into registers: tax register and nonrecoverable tax register. |
|
Tax Reconciliation Report |
Lists taxable and tax amounts by tax account for all Oracle Fusion Receivables transactions, and manual and imported output tax transactions from Oracle Fusion Tax for a given period. Generates subtotals by document class and tax account. Includes a flexfield filter parameter based on the account. Prints data in summary or detail format. |
|
Tax Reconciliation by Taxable Account Report |
Lists taxable transaction information created in Oracle Fusion Payables, Oracle Fusion Receivables, and Oracle Fusion Tax (Tax Repository). Generates subtotals by tax account and tax rate code. Includes a flexfield filter parameter based on the account. |
|
Tax Audit Trail Report |
Identifies detail tax and invoice information created and posted in Oracle Fusion Payables, and manual and imported input tax transactions from Oracle Fusion Tax. The total amounts for each tax rate code are listed in entered currency and ledger currency. Two report layouts are available: Invoice and Tax Code. |
|
Interim Tax Register |
Prints detail and summary information about interim (deferred) tax on transactions entered in Oracle Fusion Receivables and Oracle Fusion Payables. For example, the report provides supplemental information for the Output VAT Journal and Input VAT Journal for declaration preparation in Spain. |
|
Tax Allocations Listing Report |
Lists transactions within a tax period and the tax boxes to which they're allocated. Provides transactions within a specific document number range, and lists tax-related information and tax boxes assigned to recoverable and nonrecoverable amounts. Before running this report, run the Tax Reporting Selection Process which is based on the Tax Reporting Ledger and Tax Allocation Process. |
|
Tax Allocation Exception Report |
Lists the transactions that aren't allocated to any tax box in the most recent run of the Tax Allocation Process. Provides tax-related information for each transaction line. Before running this report, run the Tax Reporting Selection Process which is based on the Tax Reporting Ledger and Tax Allocation Process. |
|
Tax Box Return Preparation Report |
Lists taxable transactions by tax boxes. Groups taxable amounts and tax amounts by tax box numbers, and provides a basis for the preparation of tax returns. Before running this report, run the Tax Reporting Selection Process which is based on the Tax Reporting Ledger. |
|
Sales Tax Report |
Identifies taxable, exempt, and tax amounts for invoices entered in Oracle Fusion Receivables, and manual and imported tax transactions from Oracle Fusion Tax. Data is printed and grouped by tax jurisdiction. |
Running the Predefined Reports
To run predefined reports, use the following steps the Scheduled Processes work area in the Navigator menu:
-
Click the Schedule New Process button.
-
Search on the Process Name.
-
Enter the appropriate parameters.
-
Enter the appropriate process options and schedule.
-
Click Submit.
Tax Reporting Ledger
The Tax Reporting Ledger is a single solution for complex global tax reporting requirements on sales and purchases.
When you submit a job to run a tax report, the Tax Reporting Ledger extracts tax related transactions and accounting details from the following sources based on the parameters you specify:
-
Oracle Fusion Receivables
-
Oracle Fusion Payables
-
Oracle Fusion Tax Repository
Each time you run a tax report, the tax report uses the Tax Reporting Ledger to find and retrieve transactions and their tax information.
For example, when you submit the Tax Register report, it calls the Tax Reporting Ledger. The Tax Reporting Ledger extracts tax related details based on the parameter values you specify.
The reporting process consists of two components:
-
Data preparation
-
Data presentation
Tip: Use the report templates to present report data. For more information, see Oracle Business Intelligence Publisher documentation.
Data Preparation
The Tax Reporting Ledger extracts tax information from the relevant application tables. Data preparation includes the following:
-
Tax data extracts created as 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.
The Tax Reporting Ledger program extracts tax transaction data from these sources:
| For Input Tax | For Output Tax |
|---|---|
|
Payables invoices and credit memos |
Receivables invoices, credit memos, and debit memos |
|
Payables prepayments |
Receivables line, tax, and invoice adjustments |
|
Tax transactions imported to the tax repository |
Receivables payment application for deferred tax |
|
|
Receivables earned and unearned discounts |
|
|
Receivables finance charges |
|
|
Receivables miscellaneous receipts and payments |
|
|
Tax transactions imported to the tax repository |
Tax Register and Financial Tax Register
This topic includes details about the Tax Register and Financial Tax Register.
Overview
Tax registers include:
-
Tax Register: Identifies total tax amounts by tax type, tax class, and company from transactions created in Oracle Fusion Receivables. The report includes deferred tax accounting information and all transactions for which tax accounting is defined.
The following figure is an example of the report.
-
Financial Tax Register: Prints tax and accounting information created from transactions entered in Oracle Fusion Receivables, Oracle Fusion Payables, and Oracle Fusion Tax repository. The report lists input, output tax data, or both.
The following figure is an example of the report.
All amounts are printed in transaction entered currency.
Key Insights
The tax register types for the Tax Register and Financial Tax Register are:
| Name | Description |
|---|---|
|
All |
Use this register to include all tax transactions. |
|
Nonrecoverable Tax Register |
Use this register to show your partial and fully nonrecoverable input taxes. It also provides details on nonrecoverable taxes on:
|
|
Tax Register |
Use this register to report tax liability. It includes details on:
|
Report Parameters
The following table describes selected process parameters:
| Parameter | Description |
|---|---|
|
Reporting Level |
Choose the level on which you want to run the report. You can choose from three different levels, Ledger, Legal Entity, and Tax Registration Number. |
|
Reporting Context |
Specify the context for the report. The list of values for this parameter depends on the reporting level you selected.
|
|
Tax Registration Number |
Enter a tax registration number that is assigned to the legal reporting unit, when the reporting level is Legal Entity. |
|
Tax Point Date |
Include the transactions for the date range specified. Tax point date is the date on which the taxpayer becomes liable for paying the tax to the tax authority. |
|
Currency |
Select the range of currencies to include in the report. If a transaction is in a currency that is not within the specified range, it isn't included. |
|
Accounting Status |
Run the report for accounted transactions, unaccounted transactions, or both transactions. |
Frequently Asked Questions
The following table lists frequently asked questions about the Tax Register and Financial Tax Register.
| FAQ | Answer |
|---|---|
|
How do I find these reports? |
Schedule and run this report from the Scheduled Processes work area on the Navigator menu. |
|
Who uses these reports? |
|
|
When do I use these reports? |
Use these reports to:
|
|
What type of reports are these? |
Oracle Business Intelligence Publisher |
Tax Reconciliation and Audit Reports
This topic includes details about the Tax Reconciliation Report, Tax Reconciliation by Taxable Account Report, and Tax Audit Trail Report.
Overview
Tax reconciliation and audit reports include:
-
Tax Reconciliation Report: Lists the taxable and tax amounts, by tax account, for all Oracle Fusion Receivables transactions for a given period. Includes a flexfield filter parameter based on the account.
The following figure is an example of the report:
-
Tax Reconciliation by Taxable Account Report: Lists taxable transaction information created in Oracle Fusion Payables, Oracle Fusion Receivables, and Oracle Fusion Tax Repository. Includes flexfield filter parameter based on the account.
The following figure is an example of the report:
-
Tax Audit Trail Report: Identifies detailed tax and invoice information created and posted in Oracle Fusion Payables, and the total amounts for each tax rate code in entered currency and ledger currency. Two report layouts are available: Invoice and Tax Code.
The following figure is an example of the report:
Reconciliation reports are delivered as templates that you can use immediately or modify to satisfy your reporting needs.
Key Insights
Tax Reconciliation Report
Use the Tax Reconciliation Report to prepare the output tax portion of your periodic tax returns. This report lists the taxable and tax amounts of all sales transactions and output tax for a given period to enable you to identify and review your tax liability for various tax rate codes. All the transaction and output tax information is displayed at the detail or summary level.
In the report, you can select to include:
-
Only transactions that are posted to the General Ledger
-
Only transactions that are not posted to the General Ledger
-
Both types of transactions
The report groups information and provides totals by:
-
Account
-
Transaction class
-
Company
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 Tax Repository. This report lets you reconcile period-end taxable account balances to tax amounts. Only accounted transactions are listed in this report.
The Tax Reconciliation by Taxable Account Report helps you:
-
Prepare a tax return from a single source
-
Reconcile period-end taxable account balances.
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 code and for each tax rate code.
The accounting segment range provides you with the ability to report transactions with taxable lines posted on the account within the segment range. Specify the currency to limit the report to only transactions in that currency.
Tax Audit Trail Report
Use the Tax Audit Trail Report to review tax information for posted or partially posted purchase transactions. All transaction types are included by default, however you can select the type of transactions to report. For example, you can create a report that includes invoices but excludes prepayments and external tax transactions imported from the tax repository.
The Tax Audit Trail Report provides the following details:
-
Detail tax and invoice information, and the total amounts in the entered and ledger currencies.
-
Distributions of all posted and partially posted invoices.
-
Tax amounts and taxable amounts for each invoice.
You can order the information by invoice and tax rate code, and also group data by reporting period, tax code and tax rate.
Report Parameters
The following table lists selected report parameters common to the tax reconciliation and audit reports:
| Parameter | Description |
|---|---|
|
Reporting Level |
Choose the level on which you want to run the report. You can choose from three different levels, Ledger, Legal Entity, and Tax Registration Number. |
|
Reporting Context |
Specify the context for the report. The list of values for this parameter depends on the reporting level you selected.
|
|
Tax Registration Number |
Enter a tax registration number that is assigned to the legal reporting unit, when the reporting level is Legal Entity. |
|
Tax Point Date |
Include the transactions for the date range specified. Tax point date is the date on which the taxpayer becomes liable for paying the tax to the tax authority. |
Frequently Asked Questions
The following table lists frequently asked questions about the tax reconciliation reports and the audit report.
| FAQ | Answer |
|---|---|
|
How do I find these reports? |
Schedule and run this report from the Scheduled Processes work area on the Navigator menu. |
|
Who uses these reports? |
|
|
When do I use these reports? |
Use the:
|
|
What type of reports are these? |
Oracle Business Intelligence Publisher |
Interim Tax Register
This topic includes details about the Interim Tax Register.
Overview
The Interim Tax Register identifies detailed and summary information of unpaid or partially paid payables and receivables transactions that have a tax liability created on the payment date. The report prints customer details, transaction tax-related details, and the tax totals by tax rate code.
All transactions with tax point basis as payment are reported in the Interim Tax Register until they are fully paid.
The following figure is an example of the report:
Key Insights
Your security profile controls which ledgers and legal entities you can select. You can report on:
-
Legal entities within your security profile
-
Legal entities associated with ledgers defined in the ledger set or data access set within your security profile
Report Parameters
The following table lists selected report parameters:
| Parameter | Description |
|---|---|
|
Reporting Level |
Choose the level on which you want to run the report. You can choose from three different levels, Ledger, Legal Entity, and Tax Registration Number. |
|
Reporting Context |
Specify the context for the report. The list of values for this parameter depends on the reporting level you selected.
|
|
Tax Registration Number |
Enter a tax registration number that is assigned to the legal reporting unit, when the reporting level is Legal Entity. |
|
Print Sequence Number |
Select:
|
|
From Sequence Number |
Enter the starting sequence number when the Print Sequence Number is set to yes. If blank, the sequence number starts from 1. |
Frequently Asked Questions
The following table lists frequently asked questions about the Interim Tax Register.
| FAQ | Answer |
|---|---|
|
How do I find this report? |
Schedule and run this report from the Scheduled Processes work area on the Navigator menu. |
|
Who uses this report? |
|
|
When do I use this report? |
Use this report to plan for what taxes are to be paid in the future. |
|
What type of report is this? |
Oracle Business Intelligence Publisher |
Example of Reporting Interim Tax
The following is an example of how an invoice is reported in the Interim Tax Register.
Reporting Data
Invoice-1 for $1000 USD has an invoice date of 10-Dec-2011. The tax point basis is set to payment and the invoice is paid in three installments.
The following table lists each payment made against the invoice.
| Payment Date | Payment Amount |
|---|---|
|
20-Jan-2012 |
300 |
|
15-Mar-2012 |
300 |
|
10-May-2012 |
400 |
For reporting purposes, the invoice date is compared with the reporting period end date. The following table displays how the invoice is reported in the Interim Tax Register:
| Reporting Period | Invoice Date | Invoice Fully Paid | Payment Date | Payment Amount | Invoice Reported in Interim Tax Register | Amount Reported in Interim Tax Register |
|---|---|---|---|---|---|---|
|
Dec-11 |
10-Dec-11 |
No |
|
|
Yes |
1,000.00 |
|
Jan-12 |
10-Dec-11 |
No |
20-Jan-12 |
300 |
Yes |
700.00 |
|
Feb-12 |
10-Dec-11 |
No |
|
|
Yes |
700.00 |
|
Mar-12 |
10-Dec-11 |
No |
15-Mar-12 |
300 |
Yes |
400.00 |
|
Apr-12 |
10-Dec-11 |
No |
|
|
Yes |
400.00 |
|
May-12 |
10-Dec-11 |
Yes |
10-May-12 |
400 |
No |
- |
Since Invoice-1 is fully paid by the end of the May-12 reporting period, it's no longer reported in the Interim Tax Register.
Sales Tax Report
This topic includes details about the Sales Tax Report.
Overview
The Sales Tax Report identifies taxable, exempt, and tax amounts for invoices entered in Oracle Fusion Receivables. Data is printed and grouped by tax jurisdiction.
The following figure is an example of the report.
Key Insights
The Sales Tax Report is used only for the sales tax type and accrual basis reporting.
For adjustments to be reported correctly in the Sales Tax Report, tax jurisdictions must be associated with a corresponding tax rate.
Report Parameters
The following table describes selected process parameters:
| Parameter | Description |
|---|---|
|
Reporting Level |
Choose the level on which you want to run the report. You can choose from three different levels, Ledger, Legal Entity, and Tax Registration Number. |
|
Reporting Context |
Specify the context for the report. The list of values for this parameter depends on the reporting level you selected.
|
|
Tax Registration Number |
Enter a tax registration number that is assigned to the legal reporting unit, when the reporting level is Legal Entity. |
|
Tax Point Date |
Include the transactions for the date range specified. Tax point date is the date on which the taxpayer becomes liable for paying the tax to the tax authority. |
|
Transaction Date |
Include 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. |
|
State |
Include the sales tax information for the state you specify. |
|
Exemption Status |
List transactions which refer to the exemptions with the given status. For example, you can find all transactions using rejected exemptions by entering Rejected. |
Frequently Asked Questions
The following table lists frequently asked questions about the Sales Tax Report.
| FAQ | Answer |
|---|---|
|
How do I find this report? |
Schedule and run this report from the Scheduled Processes work area on the Navigator menu. |
|
Who uses this report? |
|
|
When do I use this report? |
Use this report to review and report your state and local tax liabilities to the tax authorities. |
|
What type of report is this? |
Oracle Business Intelligence Publisher |
Example of Reporting Output Taxes for Tax Setup Options on Receivables Activities in the Tax Register and Nonrecoverable Tax Register
The following scenario illustrates the reporting difference between the Tax Register and the Nonrecoverable Tax Register for an adjustment with nonrecoverable tax.
Receivables Invoice
The following table shows the accounting entries for an Oracle Fusion Receivables invoice that has two transaction lines, each with a different tax rate.
| 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. Assume the following settings for the Receivables activity for this adjustment:
| 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. Assume the following settings for the Receivables activity for this adjustment:
| 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 Register
For the 10 percent tax, the Tax Register shows:
| Transaction Number | Transaction Class | Taxable Amount | Tax Amount |
|---|---|---|---|
|
Inv-Test2 |
Invoice |
600.00 |
60.00 |
|
Adj-1 |
Adjustment |
-52.63 |
-5.26 |
For the 20 percent tax, the Tax Register shows:
| Transaction Number | Transaction Class | Taxable Amount | Tax Amount |
|---|---|---|---|
|
Inv-Test2 |
Invoice |
400.00 |
80.00 |
|
Adj-1 |
Adjustment |
-35.09 |
-7.02 |
Both the item lines and the adjustment that was recorded when the Recoverable setting was set to Yes are reported in the Tax Register.
Nonrecoverable Tax Register
For the 10 percent tax, the Nonrecoverable Tax Register shows:
| Transaction Number | Transaction Class | Taxable Amount | Tax Amount |
|---|---|---|---|
|
Adj-2 |
Adjustment |
-105.26 |
-10.52 |
For the 20 percent tax, the Nonrecoverable Tax Register shows:
| Transaction Number | Transaction Class | Taxable Amount | Tax Amount |
|---|---|---|---|
|
Adj-2 |
Adjustment |
-70.18 |
-14.04 |
Only the adjustment that was recorded when the Recoverable setting was set to No is reported in the Nonrecoverable Tax Register.
Example of Reporting Input Taxes in the Nonrecoverable Tax Register and Recoverable Tax Register
The following scenario illustrates the reporting differences between the Nonrecoverable Tax Register and the Recoverable Tax Register for recoverable and nonrecoverable taxes.
Payables Invoices
The following table shows the accounting entries for an Oracle Fusion Payables invoice (AP-Inv-Test3) with a fully recoverable tax and a partially recoverable tax.
| 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 for the Payables invoice AP-Inv-Test4.
| Account | Debit Amount | Credit Amount | Description |
|---|---|---|---|
|
Expense |
600.00 |
|
Net expense amount taxed at 10% |
|
Tax |
60.00 |
|
Tax at 10% is nonrecoverable |
|
Expense |
400.00 |
|
Net expense amount taxed at 20% |
|
Tax |
80.00 |
|
Tax at 20% is nonrecoverable |
|
Liability |
|
1140.00 |
|
Tax Register
For the 10 percent tax, the Tax Register shows:
| Transaction Number | Transaction Class | Taxable Amount | Recoverable Tax Amount | Nonrecoverable Tax Amount |
|---|---|---|---|---|
|
AP-Inv-Test3 |
Invoice |
600.00 |
60.00 |
0.00 |
For the 20 percent tax, the Tax Register shows:
| Transaction Number | Transaction Class | Taxable Amount | Recoverable Tax Amount | Nonrecoverable Tax Amount |
|---|---|---|---|---|
|
AP-Inv-Test3 |
Invoice |
400.00 |
48.00 |
32.00 |
AP-Inv-Test 4 does not appear in the tax register because it only contained nonrecoverable taxes.
Nonrecoverable Tax Register
For the 10 percent tax, the Nonrecoverable Tax Register shows:
| Transaction Number | Transaction Class | Taxable Amount | Recoverable Tax Amount | Nonrecoverable Tax Amount |
|---|---|---|---|---|
|
AP-Inv-Test4 |
Invoice |
600.00 |
0.00 |
60.00 |
For the 20 percent tax, the Nonrecoverable Tax Register shows:
| 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 |
Example of Reporting Prepayments in the Tax Register
The following scenario illustrates the reporting of prepayments in the Tax Register.
Payables Prepayment Invoice
The following table shows the accounting entries to create a prepayment invoice in Oracle Fusion Payables. 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 |
Upon payment of the prepayment invoice, the following accounting entries are created:
| Account | Debit Amount | Credit Amount |
|---|---|---|
|
Liability |
550.00 |
|
|
Cash |
|
550.00 |
Tax Register for Prepayment Invoice
For the 10 percent tax, the Tax Register shows:
| Transaction Number | Transaction Class | Taxable Amount | Recoverable Tax Amount | Nonrecoverable Tax Amount |
|---|---|---|---|---|
|
AP-Inv-Test10 |
Invoice (prepayment) |
500.00 |
50.00 |
0.00 |
Payables Invoice
Assume invoice number AP-Inv-Test20 is created, and the prepayment is applied to this invoice. The following table shows the resulting accounting entries:
| 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 percent appears as:
| Transaction Number | Transaction Class | Taxable Amount | Recoverable Tax Amount | Nonrecoverable Tax Amount |
|---|---|---|---|---|
|
AP-Inv-Test20 |
Invoice |
500.00 |
50.00 |
0.00 |
Example of Reporting Offset Taxes in the Tax Register
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 |
Example of Reporting Input Taxes in the Tax Register in Primary and Secondary Ledger Currency
The following scenario illustrates tax reporting in primary and secondary ledger currencies. The default template generates the Tax Register in the primary ledger currency. To create a report in the secondary or reporting ledger currency, you should modify the template to include secondary ledger or reporting ledger amounts.
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 conversion rate is 1.2.
The following table shows the accounting entries in EUR currency for an Oracle Fusion Payables invoice AP-Inv-Test5. The invoice is posted.
| 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
For the primary ledger currency, EUR, the Tax Register shows:
| Transaction Number | Transaction Class | Taxable Amount | Tax Amount |
|---|---|---|---|
|
AP-Inv-Test5 |
Invoice |
100.00 |
20.00 |
|
AP-Inv-Test6 |
Invoice |
200.00 |
40.00 |
For the secondary ledger currency, USD, the Tax Register shows:
| 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 since it is not posted and does not appear in the subledger accounting tables. These tables are the source for the Tax Register Report.
Example of Reporting Transactions Based on Tax Point Basis
The following scenario illustrates how transactions with tax point basis as payment are reported.
Scenario
You have an invoice for 100 EUR on 1-Apr-2014 with a tax rate of 40%. The line amount is 60 EUR, and the tax amount is 40 EUR.
The following payments are made:
-
On 1-May-2014, a partial payment of 20 EUR
-
On 1-Jun-2014, a final payment of 80 EUR
The following tables show the reporting differences between tax point date and accounting date across reporting periods.
For the reporting period of 01-Apr-2014 to 30-Apr-2014:
| Reporting Basis | Tax Point Date | Taxable Amount | Tax Amount | Notes |
|---|---|---|---|---|
|
Tax Point Date |
|
|
|
Since no payment is made in April, there is nothing to report. |
|
Accounting Date |
|
60 |
40 |
The invoice is created on 1-Apr-2014. |
For the reporting period of 01-May-2014 to 31-May-2014:
| Reporting Basis | Tax Point Date | Taxable Amount | Tax Amount | Notes |
|---|---|---|---|---|
|
Tax Point Date |
01-May-2014 |
12 |
8 |
The partial payment of 20 EUR is prorated across the line and tax. |
|
Accounting Date |
|
|
|
The invoice was already accounted in April. |
For the reporting period of 01-Jun-2014 to 30-Jun-2014:
| Reporting Basis | Tax Point Date | Taxable Amount | Tax Amount | Notes |
|---|---|---|---|---|
|
Tax Point Date |
01-Jun-2014 |
48 |
32 |
The balance payment of 80 EUR is prorated across the line and tax. |
|
Accounting Date |
|
|
|
The invoice was already accounted in April. |
For the reporting period of 01-Apr-2014 to 30-Jun-2014:
| Reporting Basis | Tax Point Date | Taxable Amount | Tax Amount | Notes |
|---|---|---|---|---|
|
Tax Point Date |
01-May-2014 |
12 |
8 |
|
|
Tax Point Date |
01-Jun-2014 |
48 |
32 |
|
|
Accounting Date |
|
60 |
40 |
|
Tax reports allow you to choose different date ranges for reporting, such as accounting dates, transaction dates, or tax point basis. You can use the appropriate date range to compare your tax reports with general ledger, payables, or receivables reports.
When invoices with tax point basis as payment (deferred tax) are reported based on accounting or transaction dates, tax point basis has no relevance and tax point dates do not appear on the reports.
Example of Reporting Account Postings in the Interim Tax Register and Tax Register
The following scenario illustrates the reporting difference between the Interim Tax Register and the Tax Register.
Receivables Invoice
The following table shows the accounting entries for an Oracle Fusion Receivables invoice that has two transaction lines, each with a different tax point basis.
| Account | Debit Amount | Credit Amount | Tax Point Basis | Description |
|---|---|---|---|---|
|
Receivable |
1140.00 |
|
|
|
|
Revenue |
|
600.00 |
|
|
|
Tax |
|
60.00 |
Accounting |
Tax at 10% |
|
Revenue |
|
400.00 |
|
|
|
Tax |
|
80.00 |
Tax |
Interim tax at 20% |
Partial Payment
A partial payment of 570 USD reduces the open receivable and transfers 50 percent of the deferred tax to a collected tax account, as shown by the following table:
| Account | Debit Amount | Credit Amount | Tax Point Basis | Description |
|---|---|---|---|---|
|
Cash |
570.00 |
|
|
|
|
Tax |
40.00 |
|
Payment |
50% of the deferred tax |
|
Receivable |
|
570.00 |
|
|
|
Tax |
|
40.00 |
Accounting |
Tax due to the tax authority |
Interim Tax Register
For the 10 percent tax, the Interim Tax Register shows:
| Transaction Number | Transaction Class | Taxable Amount | Tax Amount |
|---|---|---|---|
|
No data found |
|
|
|
For the 20 percent tax, the Interim Tax Register shows:
| Transaction Number | Transaction Class | Taxable Amount | Tax Amount |
|---|---|---|---|
|
Inv-Test1 |
Invoice |
400.00 |
80.00 |
|
Cr-Test1 |
Cash Application |
-200.00 |
-40.00 |
Tax Register
For the 10 percent tax, the Tax Register shows:
| Transaction Number | Transaction Class | Taxable Amount | Tax Amount |
|---|---|---|---|
|
Inv-Test1 |
Invoice |
600.00 |
60.00 |
For the 20 percent tax, the Tax Register shows:
| Transaction Number | Transaction Class | Taxable Amount | Tax Amount |
|---|---|---|---|
|
Cr-Test1 |
Cash Application |
200.00 |
40.00 |
When an invoice is paid (or partially paid), the tax amount that is transferred from the Interim Tax Account to the Tax Account appears as a negative line on the Interim Tax Register and as a positive line on the Tax Register.
As these examples illustrate, the Interim Tax Register shows only 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.
FAQs for Prepare Transaction Tax Reports
Can I see adjustments in the Sales Tax Report when no tax rate exists for the tax jurisdiction?
No, you can't see them because such adjustments aren't reported in the Sales Tax Report.
A tax jurisdiction must be associated with a corresponding tax rate defined specifically for it. Adjustments are only reported correctly for these jurisdictions.
Manage Tax Box Allocation Rules
Tax Box Allocations
You are often required to submit tax returns in a format that groups taxable transactions by applying specific grouping rules defined by the tax authorities. In most cases, the grouping rules are based on the location where the transaction took place, transaction type, tax rate, product type, and tax recovery.
Tax box allocation supports definition of tax grouping rules and complex tax reporting by providing transactional and accounting information, segregated by tax boxes.
Define two sets of rules to report periodic and annual allocations: periodic and annual.
You can:
-
Define tax box allocation rules on two different levels to support specific needs.
-
Share the rules across legal entities or define them for a specific legal entity.
In most tax regimes, legal entities that reside within the same tax regime share the same set of tax grouping rules defined by the tax authorities. Tax box allocation provides you the flexibility to define tax box allocation rules once, and share them across legal entities.
For each tax reporting period, transactions are processed and based on the tax determining factors, tax box numbers are assigned to the transaction lines.
Tax box allocations support periodic and annual reporting. It enables you to separate:
-
Purchase and sales transactions
-
Recoverable and nonrecoverable taxes
-
Domestic and foreign transactions
-
Goods and services
Tax box allocation comprises of:
-
Tax Box Allocation Rules
-
Tax Allocation Process
-
Tax Box Allocation Reports
Tax Box Allocation Rules
Tax box allocation rules are user-defined rules. They set the correspondence between tax box number and a set of transaction attributes based on which tax or taxable amount is reported in the tax box.
A tax box represents a tax declaration cell in which tax or taxable amount is reported. It may also represent a group of transactions in tax registers or other tax reports.
Tax Allocation Process
The Tax Allocation Process:
-
Checks whether the tax box allocation rule condition is met
-
Allocates applicable tax box numbers to taxable transactions
-
Verifies whether the rules are defined at the legal entity or global level. If more than one rule is applicable to a transaction, all the rules are applied. However, all the applicable rules must be at the same level, either at the legal entity or global level. Rules at the:
-
Legal entity level are given higher precedence than the rules you define at the global level.
-
Global level are processed and applied only when no rules are defined at the legal entity level.
-
Tax Box Allocation Reports
Oracle Fusion Tax provides various generic reports that are associated with tax box allocations. These reports provide details on tax computation and tax returns.
The following reports are provided:
-
Tax Allocations Listing Report
-
Tax Allocation Exceptions Report
-
Tax Box Return Preparation Report
Run the Tax Box Return Preparation Report to list taxable and tax amounts grouped by tax declaration box numbers for periodic or annual allocations.
Run the Tax Allocation Listing Report and Tax Allocation Exceptions Report to:
-
Verify the tax boxes allocated to the transaction lines
-
Check the transaction lines that don't have any tax boxes allocated
Tax Box Allocation Reports
This topic includes details about the tax box allocation reports.
Overview
The tax box allocation reports lists transaction that are allocated to tax boxes and those that are exceptions. You can use these reports as a basis for preparing tax returns.
Tax box allocation reports include:
-
Tax Allocations Listing Report: Lists transactions within a tax period and the tax boxes that the transactions are allocated to. It enables you to list transactions within a specific document number range. The report lists tax-related information and tax boxes assigned to recoverable and nonrecoverable amounts.
The following figure is an example of the report:
-
Tax Allocation Exception Report: Lists the transactions that are not allocated to any tax box in the most recent run of the Tax Allocation Process. It provides tax-related information for each transaction line.
The following figure is an example of the report:
-
Tax Box Return Preparation Report: Lists taxable and tax amounts grouped by tax declaration box numbers for periodic or annual allocations. Use the report as a basis for preparation of tax returns.
The following figure is an example of the report:
Key Insights
Before running the tax box allocation reports, run the Tax Reporting Selection Process which is based on the Tax Reporting Ledger.
Report Parameters
The following table lists some selected parameters used while generating these reports.
| Parameter | Description |
|---|---|
|
Tax Calendar Period |
Specify the tax period to be included for reporting tax. |
|
Source |
Indicate whether transactions with input tax, output tax, or both are reported. |
|
Reallocate |
Indicate whether to reallocate tax boxes for all matched transactions or for only not allocated or in error tax transactions. |
|
Report Periodicity |
Indicate the type of tax box allocation rule used to determine whether the tax box rule is applied for periodic tax returns or annual tax returns. |
|
Tax Calendar Year |
Select the reporting year for annual allocation amounts. You can also report transactions on an annual basis. |
|
Summarization Level |
Use this option to view the report in one of the following formats: Detail, Summary, or Both. |
The following table shows the combination of parameter values that are valid:
| Reporting Periodicity | Tax Calendar Year | Tax Calendar Period |
|---|---|---|
|
Periodic |
N/A |
Period (example May 2017) |
|
Annual |
Year (example, 2017) |
N/A |
Frequently Asked Questions
The following table lists frequently asked questions about the tax allocation reports.
| FAQ | Answer |
|---|---|
|
How do I find this report? |
Schedule and run this report from the Scheduled Processes work area on the Navigator menu. |
|
Who uses this report? |
|
|
When do I use this report? |
Use these reports to:
|
|
What type of report is this? |
Oracle Business Intelligence Publisher |
Generate Tax Returns Based on Tax Box Allocation Rules
To prepare tax returns that are based on the tax box allocation process, you must generate the Tax Box Return Preparation Report.
You can use the Tax Box Return Preparation Report to:
-
Compose tax declaration for periodic or annual allocations
-
Submit it to the tax authorities
The following table lists the steps required to generate tax returns based on tax box allocation rules:
| Steps | Task | Output |
|---|---|---|
|
1. |
Run the Tax Reporting Selection Process |
Extracts the transactions from the tax repository. |
|
2. |
Run the Tax Allocation Process |
Assigns applicable tax box numbers to the extracted transactions according to the defined tax box allocation rules. |
|
3. |
Run the Tax Allocation Exceptions Report and verify that there are no errors. |
Generates the Tax Allocation Exceptions Report that lists the transactions that are not applied with tax box allocation rules during the previous step. If there are errors or incorrectly allocated tax box numbers, run the Tax Allocation Process again with the Reallocate parameter set to Yes. |
|
4. |
Run the Tax Allocations Listing Report and verify that the tax box numbers assigned to the transactions are correct. |
Generates the Tax Allocations Listing Report that lists all the transactions with the corresponding tax box numbers. |
|
5. |
Run the Tax Final Reporting Process |
Stamps the transactions as finally reported. |
|
6. |
Run the Tax Box Return Preparation Report (Optional) |
Generates the Tax Box Return Preparation Report that lists taxable and tax amounts grouped by tax declaration box numbers for periodic or annual allocations. You can view detail, summary, or both detail and summary of tax and taxable amounts. |
FAQs for Tax Box Allocation Rules
How can I correct transactions when tax box allocation rules aren't applied?
If tax box allocation rules aren't applied to the transactions, here's what you can do to correct them:
-
Check the tax reporting determinants. The Payables or Receivables transactions should use all the required determinants.
-
Check the tax attributes on the transactions. Ensure that the tax box allocation rule is based on the tax reporting determinants.
-
Run the tax allocation process again.