How You Set Up Configuration Owner Tax Options for Payables and Purchasing Event Classes

Set up configuration owner tax options for a combination of configuration owner and application event class. Using configuration owner tax options, a configuration owner can update default tax options on transactions that belong to a specific application event class.

At payables or purchasing transaction time, the tax option settings of the configuration owner and application event class are used instead of the default settings.

Defining your configuration owner tax options consists of:

• Default tax options

• Tax tolerance options

• Receipt tax options

Defining Default Tax Options

The following table describes the defaults and controls available at the configuration owner tax options level for these applications and event classes:

• Payables: Expense Reports

• Payables: Prepayment Invoices

• Payables: Standard Invoices

• Purchasing: Purchase Order and Agreement

• Purchasing: Purchase Requisition

• Purchasing: Change Orders

Unless otherwise noted, the applicable check box options are automatically selected depending on the event class you are using. Default tax options don't populate any setup options you subsequently define.

Option	Description
Regime Determination Set	Controls whether the tax determination process uses: Migrated 11i approach using standard tax classification codes where the value is STCC Full regime determination using the predefined rule of TAXREGIME to determine applicable tax regimes User-created regime determination rules
Perform additional applicability for imported documents	Triggers tax calculation to determine additional taxes on imported documents.
Enforce tax from reference document	Enforces that tax calculation is based on the tax previously calculated on the reference document.
Enforce tax from account	Enforces that tax calculation is based on the tax account information associated with the transaction tax line.
Allow offset tax calculation	Calculates offset tax at transaction time for this configuration owner, application, and event class.
Offset Tax Basis	Identifies the third party or third-party site used for the calculation of offset taxes.
Allow tax applicability	Automatically calculates tax at transaction time for this configuration owner, application, and event class.
Allow entry of manual tax lines	Use this option in conjunction with the Allow entry of manual tax lines option for the tax. When both options are selected, you can enter manual tax lines at transaction time.
Allow recalculation of manual tax lines	Recalculates tax for manual tax lines when you update transaction lines.
Allow override of calculated tax lines	Use this option in conjunction with the Transaction Tax Line Override profile option and the Allow override of calculated tax lines option for the tax. When all options are selected, you can update the calculated tax line, excluding the update of the Inclusive option and the tax rate. To update the Inclusive option and tax rate at transaction time, select additional options for the tax rate.
Allow override and entry of inclusive tax lines	Use this option in conjunction with the Transaction Tax Line Override profile option, the Allow override of calculated tax lines option for the configuration owner tax options, and the Allow override and entry of inclusive tax lines option for the tax rate to allow you to update the Inclusive option on the tax line at transaction time This option is not selected by default.
Allow supplier tax variance calculation	Calculates the differences in the tax amounts between an invoice and a purchase order.
Default Tax Point Basis	Identifies the event on which the tax is levied, accounted in the books, and reported to the tax authorities.
Use Rounded Tax Amount for Conversion	Use this option in conjunction with tax regime Rounding Conversion Option to calculate taxes on rounded amounts in the entered currency on Payables invoices before conversion to the ledger currency according to tax regime option.

Defining Tax Tolerance Options

The following table describes the tax tolerance options for these applications and event classes:

• Payables: Expense Reports

• Payables: Prepayment Invoices

• Payables: Standard Invoices

Option	Description
Tolerance Percentage	Specifies the maximum percentage that a tax line override can differ from the automatically calculated tax line before a hold is placed on the invoice.
Tolerance Range Amount	Specifies the maximum amount that a tax line override can differ from the automatically calculated tax line before a hold is placed on the invoice.

Defining Receipt Tax Options

Receipt tax options are available for the Payables: Standard Invoices event class. Select to allow delivery-based tax calculation for the receipt tax options to be available for entry.

The following table describes the receipt tax options:

Option	Description
Report Delivery-Based Taxes on Receipt or Invoice	Refers to the type of transaction on which the delivery-based taxes calculated at the time of receipt should get reported.
Tax Point Date	Indicates the date on which you become liable for paying the tax to the tax authority or eligible to claim tax recovery. If you report the delivery-based taxes on the: Receipt, the tax point date is populated as the Receipt date. You can't change this value. Invoice, the tax point date is populated as the Invoice date. You can change this value to Receipt date if necessary.
Tax Point Basis	Represents the event on which the tax is levied, accounted in the books, and reported to the tax authorities. If you report the delivery-based taxes on the: Receipt, the tax point basis is populated as Delivery. You can't change this value. Invoice, the tax point basis is populated as Invoice. You can't change this value.