Tax Implementation Workbook

Use the Tax Implementation Workbook to upload the following items into Oracle Fusion Tax or supporting products such as the Oracle Fusion Trading Community Model (party classifications) or Oracle Fusion Inventory (product fiscal classifications):

• Tax regime subscriptions

• Tax registrations

• Tax exemptions

• Party classifications

• Tax reporting codes

• Tax payer identifiers

• Product fiscal classifications

• Tax rules

For example, use the Tax Implementation Workbook to assign your particular business units or legal entities to a tax regime to calculate taxes on transactions.

Tax Implementation Workbook Worksheets

The Tax Implementation Workbook is a Microsoft Excel spreadsheet template with nine tax setup worksheets:

Worksheet	Implementation Notes
Tax Regime Subscriptions	Assign single or multiple business units or legal entities to a tax regime.
Party Tax Profile Controls	Create party tax profiles for legal reporting units, third parties, and third-party sites where needed. This worksheet is not used regularly because party tax profiles are usually created automatically when the core baseline entity is created. For example, a legal reporting unit party tax profile is created automatically when you create the corresponding legal entity as part of the standard enterprise structure configuration. In exceptional cases where party tax profiles are not created automatically, unhide and use this worksheet.
Tax Registrations	Assign tax registrations for first-party legal reporting units, third parties, and third-party sites for tax determination or self-assessment of taxes. Setting up tax registrations is optional.
Tax Exemptions	Create tax exemption configuration for third parties and third-party sites. Setting up tax exemptions is optional. For example, the configuration of state-level customer exemption certificates in the United States. When an exemption is granted to a customer through an exemption certificate, the exemption certificate information is uploaded for a specific state. You can also apply the exemption certificate at all lower levels within the state such as all county and city levels. For a blanket customer exemption certificate that is not state-specific, no tax jurisdiction information must be specified.
Party Classifications	Create party fiscal classifications for subsequent use in tax rules having a party fiscal classification determining factor class. Creation of party fiscal classifications is supported for legal reporting units, legal entities, third parties, and third-party sites. However, party fiscal classifications in tax rules that apply to a large grouping of the third party and third-party sites are typically created for third parties and third-party sites such as customers, customer sites, suppliers, or supplier sites. The tax rules which use party fiscal classifications are defined using the Tax Rules worksheet while the prerequisite party fiscal classifications referenced in the tax rules are defined in the Party Classifications worksheet. The tax rules which use party fiscal classifications are defined using the tax rules worksheet while the prerequisite party fiscal classifications referenced in the tax rules are defined in the party classifications worksheet.
Tax Reporting Codes	Create tax reporting codes and tax reporting types for downstream use in tax reports. Tax reporting types capture additional tax information on transactions for your tax reports. You can use tax reporting types for your internal reporting needs and to fulfill country-specific reporting requirements. You may create tax reporting codes for a tax reporting type to provide additional granularity for tax reporting.
Tax Payer Identifiers	Define specific Taxpayer IDs for third parties and third-party sites for purposes of reporting.
Product Fiscal Classifications	Create product fiscal classifications for subsequent use in tax rules having a product inventory linked determining factor class. In practice, product fiscal classifications are created to categorize a group of individual items associated with an inventory catalog for which there is similar tax treatment across the majority of the individual items. In this context, items could be specific goods or services and the product fiscal classifications could be a corresponding categorization of those goods or services, which are treated similarly from a tax determination perspective. The tax rules that use product fiscal classifications are defined using the Tax Rules worksheet. The prerequisite product fiscal classifications referenced in the tax rules are defined in the Product Fiscal Classifications worksheet.
Tax Rules	Define business-driven or industry-specific taxability or tax exemption rules. Option 1: Prepare the tax rules. Option 2: Use tax partner content for the Tax Implementation Workbook. Typically, tax partners deliver their primary common configuration using the Tax Configuration Workbook. However, they may also deliver unique taxability and tax exemption rules once clients have defined their specific business and industry needs in this area.