Enable and Apply Tax Calculation on Receipt Accounting Distributions

You must enable and apply tax calculation on receipt accounting distributions per country specific tax regulations in India.

Follow these steps

1. Enable the Tax calculation on receipt accounting distributions feature:
   1. Navigate to the Setup and Maintenance work area.
   2. Select the offering as Financials.
   3. Click Change Feature Opt In.
   4. On the Opt In: Financials page, click the Features icon for financials.
   5. On the Edit Features: Financials page, select the Enable check box for the feature named Tax Calculation on Receipt Accounting Distributions.
   6. Click Done.
2. Apply this feature:
   1. Sign in as a Tax Manager.
   2. In the Setup and Maintenance work area, select these options:
      • Offering: Financials
      • Functional area: Transaction Tax
      • Task: Manage Configuration Owner Tax Options
   3. Click the Create icon.
   4. Select the configuration owner to which you want to apply this feature.
   5. Select Standard Invoices/Payables as the Event Class.
   6. In the Receipt Tax Options section, enable Allow delivery-based tax calculation with these settings:
      • Report Delivery-Based taxes on: Invoice
      • Tax Point Date: Receipt date
      • Tax Point Basis: Invoice

      Note: If you'd not selected this feature when setting up the configuration owner tax options, the taxes on receipt accounting distributions will be prorated from the purchase order. You can't view the detailed tax lines on the receipt accounting distributions page.