How Geography Elements Work in Tax Rules

Geography determination factors allow you to use geography elements in tax rules. A combination of determination factor class, class qualifier, and determining factor represent these determination factors.

Geography Elements in Tax Rules

To set up tax rules based on geography elements, use:

• Geography as the determining factor class

• Location type on the transaction as the class qualifier

• Geography level, such as county, province, or city, as the tax determining factor

You can also use the geography level 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 to the specific location, based on the transaction as shown in the following table:

Generic Party	Order-to-Cash Party	Procure-to-Pay Party
Bill-from party	First-party legal entity	Supplier
Bill-to party	Customer	First-party legal entity
Ship-to party	Customer (ship to) party site	First-party legal entity
Ship-from party	First-party legal reporting unit	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