Examples of Impact on Tax Lines for Receivables Transaction Changes

You can change one or more transaction header or line attributes after tax calculation is performed and when the transaction isn't in the complete state.

The change in the value of a tax determining attribute may result in altogether different taxes.

Changes to Transaction Information Examples

The following scenarios illustrate the impact of certain changes to the transaction header or line attributes.

• When you change your ship-to location from an address in Nevada to California, both states in the US, the California sales taxes applicable to the California address calculates instead of Nevada. In this example, Oracle Fusion Tax deletes the Nevada sales tax lines and creates the California sales tax lines. Similarly, on changing your warehouse in the UK to another warehouse in France, you see French VAT on your transaction instead of Great Britain VAT.

• When taxes are charged based on quantity sold, a change in quantity impacts the tax amount. In this case, Oracle Fusion Tax updates the tax amount on an existing tax line.

  Note: You can delete an entire transaction or a transaction line in Oracle Fusion Receivables. If you do so, the corresponding tax lines are also deleted.

• When your customer provides you with an exemption certificate and expects tax exemption, you review the tax line and notice that the exemption isn't applied. In this situation, instead of configuring the exemption certificate number in Oracle Fusion Tax for which you may not have privileges, enter the exemption certificate number and exemption reason on a transaction line and select Exempt, manual as the tax handling option. In this case, the application applies 100% exemption.

• When all the tax determinants have correct values and taxes are incorrect, review and correct your tax configuration. If you must process the transaction immediately and you have the necessary privileges, update the calculated tax line. You can change the tax jurisdiction, tax status, tax rate name, tax rate, tax amount, or the inclusive option. Oracle Fusion Tax derives the dependent tax line attribute defaults to expedite your tax line updates. For example, if you update the tax jurisdiction on a tax line, the tax rate name, tax rate, and tax amount are updated based on the default tax rate code for the tax jurisdiction you entered. If you update tax rate, Oracle Fusion Tax recalculates the tax amount based on the new tax rate you entered.

  Note: You aren't allowed to delete a tax line. Instead of deleting a tax line, you can update the tax amount to zero. When you update the tax amount, depending upon the tax configuration, either the tax rate or taxable amount is recalculated.

• When you complete a transaction and notice the taxes are incorrect on the transaction, Oracle Fusion Receivables allows changing the transaction provided no activity exists. You can change the status on the transaction to incomplete and update the transaction header, transaction line, or tax line attributes. If your transaction has activity against it, the Incomplete button is disabled. Create a credit memo for a tax credit or make a tax adjustment for your transaction.