How Country Information Works in Tax Rules and on Transactions
Use geography determination factors to specify country information in tax rules. A combination of determination factor class, class qualifier, and determining factor represent these determination factors.
Specify the taxation country at transaction time which is used, along with the tax rules, during the tax determination process.
Country Information in Tax Rules
To set up tax rules based on country information, use:
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Geography as the determining factor class
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Location type on the transaction as the class qualifier
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Country as the tax determining factor.
You can also use country as a tax rule qualifier.
The tax determining factors for locations are given generic names such as ship-to and bill-from, depending on the transaction types.
The transaction types are
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Order-to-cash: For Oracle Fusion Order Management and Oracle Fusion Receivables transactions.
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Procure-to-pay: For Oracle Fusion Purchasing and Oracle Fusion Payables transactions.
These generic locations are mapped into specific locations based on the transaction as shown in the following table:
Generic Party |
Order-to-Cash Party |
Procure-to-Pay Party |
---|---|---|
Bill-from party |
Location assigned to the business unit for the transactions |
Supplier |
Bill-to party |
Customer |
Location assigned to the business unit for the transactions |
Ship-to party |
Customer (ship-to) party site |
Ship-to location on the line |
Ship-from party |
Warehouse on the line. If there is no warehouse on the line, such as with services, the location from the item validation organization in the Receivables system parameters is used. |
Supplier (ship-from) party site |
Point of acceptance party |
Customer point of acceptance party |
Not applicable |
Point of origin party |
Customer point of origin party |
Not applicable |
Country Information at Transaction Time
Specify the taxation country on the transaction to identify the country in which the transaction is deemed to have taken place for taxation purposes. The default value is the country of the legal entity.
Use the country name to search for country defaults, which control the:
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Fiscal classification defaults
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Party tax profile defaults
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Tax regime defaults
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Tax defaults
Use the country name to select the following fiscal classifications associated with that specific country:
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User-defined fiscal classifications
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Product categories
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Intended use fiscal classifications
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Transaction business categories