Tax Determination in Tax Simulator

Transactions pass key tax drivers relating to parties, products, places, and processes captured on the transaction to Oracle Fusion Tax for tax determination. Using these tax driver values as input, the tax determination process performs a series of process steps utilizing the defined:

• Tax configuration

• Tax rules for each rule type

From the transaction tax details it might not be clearly evident as to which tax rule from your defined tax setup got processed or if the calculated tax is the result of the relevant rule condition. Using the Tax Simulator you can verify the:

• Tax determination process breakdown

• Details of the tax rules that are evaluated for each rule type, such as

  • Result type, default, or rule-based

  • Rule result

  • Sequence of the rule evaluation

  • Successful, unsuccessful, and not evaluated tax rules

  • Corresponding determining factor sets, condition sets, and detailed condition elements

• Other key factors that are analyzed and applied during the tax determination process

The tax line details in the Tax Simulator lists out the following key process results that the tax determination process considers for each tax applied on the transaction:

• The tax determination methodology applied, such as regime determination or standard tax classification codes

• The rounding criteria applied, including rounding rule, rounding level, minimum accountable unit, and tax precision

• The types of taxes evaluated, for example, those enabled for transactions or enabled for simulation