How to Assign Tax Product Category to an Expense Type

Before you can assign a tax product category for an expense type, you must perform the following prerequisite setup in the Tax module.

Prerequisites

1. Configure the tax product category for Expenses in the Tax module. For more information on configuring product categories, see the Product Category Fiscal Classifications topic in the Manage Product Based Fiscal Classifications chapter in the Implementing Tax Guide.

2. Set up Configuration Owner Tax Options (COTO) in Tax Setup. For more details on COTO, refer to the Manage Configuration Owner Tax Options topic in Implementing Tax Guide.

To assign a tax product category to an expense type perform the following steps

1. In the Setup and Maintenance work area, use the following:

   1. Offering: Financials

   2. Functional Area: Expenses

   3. Task: Manage Expense Report Templates

2. On the Manage Expense Report Templates page, click Edit for the template you want to modify.

3. On the Edit Expense Report Template page, click Edit for the expense type you want to modify.

4. Search and select a tax product category you want to assign to the expense type from the Tax Product Category drop-down.

5. Navigate to the Expense Fields tab and set the Expense Location field to Required.

6. Click Save or Save and Close.

Create Expense page does not display the Tax product category to employees when creating expenses. Expenses assigns the tax product category to each expense and passes this information together with other tax determining factors to Payables when the Process Expense Reimbursements process creates payment requests in Payables.