Tax Simulator

Tax Simulator is a tool to simulate tax calculation results for your purchase and sales transactions. Variations in transaction attributes such as location details, transacting parties, and items can impact the tax calculation results.

These variations can be previewed in the Tax Simulator to confirm your tax configuration.

The Tax Simulator lets you:

• Preview the workings of your tax configuration before you perform tax calculations on live transactions in a subledger application.

• Test new tax configuration in conjunction with existing tax configuration to preview the resulting tax calculation.

• Identify the root cause when tax calculation isn't what's expected on live data.

To validate your tax configuration, enter or copy a variety of transactions that are a representation of your business flows and verify that your tax is calculated as expected.

Note: The simulated tax calculations don't affect live data.

Principle aspects of the Tax Simulator include:

• Functions and verifications

• Analysis tools

• Restrictions

Tax Simulator Functions and Verifications

The Tax Simulator lets you simulate the tax determination process on transactions without creating live data.

The Tax Simulator enables you to complete these functions:

• Enter transactions to simulate tax calculation based on various scenarios.

• Simulate the characteristics of the Payables, Purchasing, and Receivables transactions and create the tax line for each type of operation.

• View the detail tax lines generated for each transaction line.

• View the tax rules that were applied to a tax calculation and the processed result for each rule type.

The Tax Simulator provides these verifications:

• How the tax rules that you have defined for one or more taxes work in conjunction with the defaults that you have set for them.

• Whether a tax rule that you expected to have a successful evaluation for a given set of transaction conditions achieved the desired result.

• How the options that you have set at various levels are reflected in the results of tax determination processing. If a certain transaction doesn't process taxes as you predicted, then you can use the simulated result to troubleshoot the cause. For example:

  • You thought that there were product tax exceptions, but they weren't used on a transaction as expected. You then discover that the Allow tax exceptions option wasn't enabled on the applicable tax rate record.

  • Your supplier record has the option enabled to use offset taxes, but the offset taxes don't appear. You then discover that the tax rate record doesn't have an offset tax rate associated with it.

Tax Simulator Analysis Tools

The Tax Simulator provides these pages to analyze the tax calculations on simulated transactions:

• Simulator Transaction page: View the details of the simulated transaction.

• Tax Line Details page: View the calculated tax lines for the simulated transaction. For each transaction line, the page displays:

  • Applicable tax and tax configuration details

  • Whether the result was determined by a tax rule or the default value. If a tax rule was applied, the page displays the associated tax condition set.

• Rule Type page: View details of all enabled rules for a rule type. The page displays the:

  • Processed result for each rule

  • Associated tax condition sets and their processing details and results

Tax Simulator Restrictions

The following restrictions apply when using the Tax Simulator:

• Payables tax recovery processing can't be simulated.

• Application-specific actions on transactions or transaction lines, such as canceling, deleting, and reversing, aren't tested.

• User control settings such as tax profiles options, manual tax line entry, and tax exemption override control aren't tested or verified.