Tax Calculation on Receivables Transactions Using Tax Point Basis

Taxes are calculated on a receivables invoice, debit memo, or credit memo based on the type of transaction and its source.

Following are the receivables transactions that are subject to tax determination:

• Stand-alone invoice

• Invoice created in Oracle Fusion Distributed Order Orchestration

• Invoice adjustment

• Credit transaction based on an invoice

Stand-Alone Invoice

Taxes are calculated based on the tax attributes on the invoice. The tax point basis of Delivery for a tax is changed to Invoice as no shipment reference is available.

Invoice Created in Distributed Order Orchestration

Taxes are calculated based on the tax attributes on the invoice. For a tax with the tax point basis of Delivery, recalculation is done using the shipment date as the transaction date. The tax is then marked as reportable to the tax authorities.

Invoice Adjustment

All taxes calculated as part of invoice adjustments have the tax point basis of Accounting. They are reported at accounting time, regardless of the source transaction status.

Credit Transaction Based on an Invoice

Taxes available on the original invoice are copied. The tax point basis of Delivery for a tax is changed to Invoice. The tax is then marked as reportable to the tax authorities.

Note: If you do not expect to correct or report a delivery-based tax to the tax authorities using a credit transaction, then cancel the copy of the tax line.