Details for Simulated Transaction Lines

Use the Tax Line Details page to review the transaction level details that influence all tax lines and view the calculated tax lines for your simulated transaction.

Each tax line for each transaction line number is listed in the Tax Line Details table with the corresponding tax configuration details.

Open the Tax Line Details page by clicking the View Tax Lines button on the Simulator Transaction pages from the Manage Simulator Transactions task.

Attributes in tax line details include:

• Configuration owner, document event class, and source

• Allow tax applicability

• Regime determination set

• Default rounding level

Configuration Owner, Document Event Class, and Source

The configuration owner identifies the business unit or legal entity on the transaction that owns the tax configuration. For example, if the business unit is subscribing to the data from the legal entity, the legal entity is identified, rather than the business unit.

In order for a tax regime to be applicable on the transaction, the identified configuration owner has to subscribe to the applicable tax regime.

The Source field can have a value of:

• Configuration owner tax options: The application derives the event class-specific tax options from a configuration owner tax option that's defined for the combination of configuration owner, event class, and date range.

• Event class: The application derives the tax options from the default predefined values for the event class.

These tax options include the:

• Option to calculate tax

• Regime determination set

• Options to allow manual entry and override

• Rounding defaults

• Details regarding tax calculation on referencing documents

When the value is Event class, there are no configuration owner tax options defined for the combination of configuration owner, event class, and date. The predefined values are used including the predefined value of TAXREGIME for the regime determination set.

Allow Tax Applicability

The two allow tax applicability attributes identify whether the tax configuration setup provides for the calculation of taxes on the transaction. Both attributes must be set to Yes to calculate tax.

The two occurrences indicate the following:

• The first occurrence indicates if the Allow tax applicability option is selected on the predefined event class or applicable configuration owner tax options setup.

  • If you don't set up configuration owner tax options, the default value is set to Yes based on the event class mapping.

  • If configuration owner tax options are set up and the Allow tax applicability option isn't selected, a value of No appears.

• The second occurrence validates the hierarchy of tax applicability from the Supplier and supplier site definitions for procure-to-pay transactions

  • Supplier Site Party Tax Profile definitions

  • Supplier Party Tax Profile definitions

  • Supplier Site definitions

  • Supplier definitions

When the Allow tax applicability option is:

• Not selected at any of the applicable levels, tax isn't calculated.

  Note: For supplier party tax profile, taxes are calculated even when the Allow tax applicability option is not selected.

• Selected at a lower level and not selected at a higher level, tax isn't applicable.

If the Allow Tax Applicability field on the Tax Lines Detail page is No, click the link to see where this option isn't selected.

Regime Determination Set

The regime determination set indicates how the application determines the tax regimes to use for this transaction.

The regime determination set can either be:

• A value other than STCC (standard tax classification code). A determining factor set of type regime determination that includes transaction factors of location types is used to derive the owning country on the transaction for tax purposes. Taxes are calculated for the tax regimes that you defined for the derived country. The predefined regime determination set is TAXREGIME, this value always populates if the source is Event class.

  Drill down to the regime determination set details to identify the precedence of locations while determining the tax regime country.

• The value STCC. The additional tax attribute of Tax Classification set at the Line Level Tax Attributes tab derives tax calculation either directly or based on the Tax Classification Based Direct Rate Rules.

For example, if your simulated transaction doesn't have any tax lines, check the regime determination set value. If it is set to STCC and the Tax Classification field on the Line Level Tax Attributes tab is blank, tax isn't calculated. Review your application tax options to verify the:

• Defaulting hierarchy that specifies both the sources to use for tax classification codes

• Order in which the application searches these sources to find a valid tax classification code at transaction time

Default Rounding Level

The default rounding level shows in order of precedence, the party type, source, and rounding level value. At a minimum, a default value is set. The options are:

• Header level rounding: Header level rounding applies rounding to calculated tax amounts once for each tax rate per invoice.

• Line level rounding: Line level rounding applies rounding to the calculated tax amount on each invoice line.

The rounding rule is the method used to round off taxes to the minimum accountable unit. To know how rounding is determined or to modify the setup, use the dialog details in conjunction with the party information.