Simulating Tax on Transaction Data

Use the Tax Simulator to validate new and existing tax setup for procure-to-pay and order-to-cash transactions.

The format of the Tax Simulator interface is a lightweight version of the procure-to-pay and order-to-cash work areas, allowing ease of data entry and flow of item lines to tax calculation and tax lines.

In addition to manual entry of transaction data, you can copy live data to view or modify in the Tax Simulator. You can purge the data using a process request.

The Tax Simulator gives you visibility into transaction attributes that impact tax calculation, including:

• Required transaction attributes

• Additional tax attributes

• Reference, adjusted, and applied documents

Required Transaction Attributes

The required fields for transaction entry and tax calculation are:

• Document Event Class

• Document Date

• Legal Entity

• Business Unit

• Currency

• Supplier

• Customer

• Line Amount

• Line Type

• Line level:

  • Line Class

  • Line Type

  • Item

  • Product Type

Additional Tax Attributes

In addition to the required fields for transaction entry and tax calculation, the Tax Simulator gives you visibility into additional tax attributes that are commonly used to drive tax calculation based on tax rules.

The following additional tax attributes are organized in a tabbed region for entry and update:

• Header level:

  • Taxation Country

  • First-Party Tax Registration Number

  • Third-Party Tax Registration

  • Ship-from Location

• Line Level:

  • Line Class

  • Item

  • Product Type

  • Tax Inclusive

  • Transaction Business Category

  • Assessable Value

  • Tax Classification

  • Product Category

  • Intended Use

  • Product Fiscal Classification

  • User-Defined Fiscal Classification

  • Location of Final Discharge

  • Account

All of these attributes can drive tax determination or tax calculation directly based on tax rules and tax formulas.

Reference, Adjusted, and Applied Documents

Reference, adjusted, and applied documents can have tax calculation impacted by the documents they're associated with. The Tax Simulator presents information on some of the impacts. Others, such as variances in distributions, aren't presented since accounting isn't part of the Tax Simulator functionality.

When a document is simulated or copied in the Tax Simulator, the application doesn't copy referencing, adjusted, and applied documents. You must copy each document separately and associate them in the Tax Simulator.

The following is a list of the available event classes and associations that can be made in the Tax Simulator:

Application	Header Level Document Event Class	Item Line Attribute Line Class	Reference, Adjusted, and Applied Tab: Document Event Class	Reference, Adjusted, and Applied Tab: Document Number	Reference, Adjusted, and Applied Tab: Document Date	Reference, Adjusted, and Applied Tab: Document Line Number
Payables	Standard Invoice	Invoice	Purchase Order (not required)	Select the purchase order document number.	Populated when the document number is selected and it's read only.	When you enter the document number of the purchase order this list is available with the respective invoice lines.
Payables	Standard Invoice	Prepayment	Prepayment Invoice	Select the prepayment invoice number.	Populated when the document number is selected and it's read only.	When you enter the document number of the prepayment invoice this list is available with the respective prepay invoice lines.
Payables	Standard Invoice	Credit Memo	Standard Invoice	Select the credit memo document number.	Populated when the document number is selected and it's read only.	When you enter the document number of the invoice this list is available with the respective invoice lines.
Payables	Prepayment Invoice	Column not displayed	Tab not displayed	Tab not displayed	Tab not displayed	Tab not displayed
Purchasing	Purchase Order	Column not displayed	Tab not displayed	Tab not displayed	Tab not displayed	Tab not displayed
Receivables	Invoice	Column not displayed	Tab not displayed	Tab not displayed	Tab not displayed	Tab not displayed
Receivables	Credit Memo	Column not displayed	Invoice	Required	Populated when the document number is selected and it's read only.	When you enter the document number of the invoice this list is available with the respective invoice lines.