How Country Information Works in Tax Rules and on Transactions

Use geography determination factors to specify country information in tax rules. A combination of determination factor class, class qualifier, and determining factor represent these determination factors.

Specify the taxation country at transaction time which is used, along with the tax rules, during the tax determination process.

Country Information in Tax Rules

To set up tax rules based on country information, use:

• Geography as the determining factor class

• Location type on the transaction as the class qualifier

• Country as the tax determining factor.

You can also use country as a tax rule qualifier.

The tax determining factors for locations are given generic names such as ship-to and bill-from, depending on the transaction types.

The transaction types are

• Order-to-cash: For Oracle Fusion Order Management and Oracle Fusion Receivables transactions.

• Procure-to-pay: For Oracle Fusion Purchasing and Oracle Fusion Payables transactions.

These generic locations are mapped into specific locations based on the transaction as shown in the following table:

Generic Party	Order-to-Cash Party	Procure-to-Pay Party
Bill-from party	Location assigned to the business unit for the transactions	Supplier
Bill-to party	Customer	Location assigned to the business unit for the transactions
Ship-to party	Customer (ship-to) party site	Ship-to location on the line
Ship-from party	Warehouse on the line. If there is no warehouse on the line, such as with services, the location from the item validation organization in the Receivables system parameters is used.	Supplier (ship-from) party site
Point of acceptance party	Customer point of acceptance party	Not applicable
Point of origin party	Customer point of origin party	Not applicable

Country Information at Transaction Time

Specify the taxation country on the transaction to identify the country in which the transaction is deemed to have taken place for taxation purposes. The default value is the country of the legal entity.

Use the country name to search for country defaults, which control the:

• Fiscal classification defaults

• Party tax profile defaults

• Tax regime defaults

• Tax defaults

Use the country name to select the following fiscal classifications associated with that specific country:

• User-defined fiscal classifications

• Product categories

• Intended use fiscal classifications

• Transaction business categories