Overview of Transaction-Based Fiscal Classifications

Many tax regimes define rules for specific transactions or information related to the transaction. To support these requirements, Oracle Fusion Tax provides features to allow the transaction process to be classified.

These classifications provide a conceptual model to classify the type of transactions and documents related to the transaction. Set up your transaction process classifications in the Manage Transaction-Based Fiscal Classifications task.

The following process classifications for tax purposes can be used within Oracle Fusion Tax and are summarized in the following table:

Process Classification	Description
Transaction business category	Use this classification to classify a transaction line to define the type of transaction.
Transaction fiscal classification	Use this classification to group transaction business categories to minimize tax rules setup and maintenance.
Document fiscal classification	Use this classification to relate documents to a transaction that affect the tax applicability or determination of transaction taxes on the transaction.
User-defined fiscal classification	Use this classification to classify transaction lines where none of other classification is appropriate.

Tip: If possible, use other fiscal classifications that are automatically derived at transaction time in preference to the process classification which requires manual intervention at transaction time.

Use these classifications as determining factors within tax rules in the tax determination process, although you can also use them for tax reporting.