Tax Controls and Defaults
Set up details for the taxes of a tax regime. Each separate tax in a tax regime includes records for the statuses, rate, and rules that are used to calculate and report on the tax.
Oracle Fusion Tax derives defaults tax information from the tax regime to each tax that you create for a regime. You can modify this information at the tax level according to your needs, as well as add additional defaults and overrides.
Defining Controls and Defaults
The following table describes the defaults and controls available at the tax level.
Header Region
Field |
Description |
Default Derived from |
Default Appears on |
Controls |
---|---|---|---|---|
Enable tax for simulation |
Controls whether this tax is available for computation within the Tax Simulator functionality |
None |
None |
If selected, this tax is available for calculation in the Tax Simulator when the evaluate taxes is enabled for simulation. |
Enable tax for transactions |
Controls whether this tax is available for transactions. Selecting this option triggers integrity checks to validate that the setup for this tax is accurate and complete |
None |
None |
If selected, this tax is used by transactions, if applicable. If not selected then this tax isn't processed as an applicable tax at transaction time. |
Tax Information Region
Field |
Description |
Default Derived from |
Default Appears on |
Controls |
---|---|---|---|---|
Tax Currency |
The default currency of the taxes within a tax regime |
Tax regime |
None |
Defines the tax currency for calculation and reporting purposes |
Minimal Accountable Unit |
The minimal unit of currency reported to the tax authority. For example, 0.05 GBP indicates that 5 pence is the minimal unit |
Tax regime |
None |
Defines the minimal accountable unit at transaction time |
Tax Precision |
A one digit whole number to indicate the decimal place for tax rounding |
Tax regime |
None |
Defines the tax precision during tax calculation |
Conversion Rate Type |
The specific conversion rate table that's used to convert one currency into another. For example, the Association of British Travel Agents conversion rate used in the travel industry |
Tax regime |
None |
Defines the conversion rate that's used as necessary at transaction time |
Rounding Rule |
The rule that defines how rounding is performed on a value. For example, up to the next highest value, down to the next lower value, or to the nearest value |
Tax regime |
None |
Can control rounding at transaction time |
Compounding Precedence |
Defines the order in which this tax is calculated compared to other taxes that are compounded on or compounded by this tax. The tax with the lowest precedence value is calculated first. |
None |
None |
Controls the order in which applicable taxes are calculated at transaction time |
Reporting Tax Authority |
The default tax authority to whom the tax reports are sent |
Tax regime |
Tax registration |
None |
Collecting Tax Authority |
The default tax authority to whom the tax is remitted |
Tax regime |
Tax registration |
None |
Applied Amount Handling |
Controls whether tax is recalculated or prorated on prepayment, with the default being Recalculated |
None |
None |
Controls Oracle Fusion Payables functionality and how payments trigger recalculation or prorating of tax amounts |
Set as offset tax |
Defines this tax as an offset tax |
None |
None |
Selecting this option disables the Controls region and Tax Exceptions and Exemptions Controls region and clears any values that were entered in these regions |
Set tax for reporting purposes only |
Defines whether this tax is set up for reporting purposes only |
None |
None |
Controls whether this tax is used for reporting only and doesn't create any tax account entries |
Controls and Defaults Tab, Controls Region
Field |
Description |
Default Derived from |
Default Appears on |
Controls |
---|---|---|---|---|
Tax Point Basis |
Specify the event that's the basis for tax recovery or liability. This event is also the basis on which tax is considered for reporting. |
None |
Tax rate |
Use this option in conjunction with the option on the first-party tax registration. |
Tax Inclusion Method |
Defines whether the tax is:
|
None |
None |
Use this option in conjunction with other setup on tax, party tax profile, tax registration, and transaction details to control the inclusiveness of a line amount at transaction time |
Allow override and entry of inclusive tax lines |
Controls whether you can override and enter inclusive or exclusive line amounts |
Tax regime |
Tax rate |
None |
Allow tax rounding override |
Allows the override of the rounding defined on the tax registration records |
Tax regime |
None |
Use this option to override tax rounding setup on the tax registration records for registrations for this tax |
Allow override of calculated tax lines |
Allows you to override the calculated tax lines at transaction time when the Transaction Tax Line Override profile option is also set |
None |
None |
Use this option in conjunction with the Transaction Tax Line Override profile option and the Allow override of calculated tax lines option for the configuration owner tax options to allow you to update calculated tax lines at transaction time. If any of these options aren't set then update of calculated tax lines isn't allowed at transaction time. |
Allow entry of manual tax lines |
Allows you to enter manual tax lines at transaction time |
None |
None |
Use this option in conjunction with Allow entry of manual tax lines option for the configuration owner tax options. When both fields are set you can enter manual tax lines at transaction time. |
Use legal registration number |
Controls whether the tax registration number is the same as the legal registration number of the party |
None |
None |
If this option is selected you can choose an existing legal entity registration number as the transaction tax registration number |
Allow duplicate registration numbers |
Controls whether you can enter duplicate tax registration numbers for different parties |
None |
None |
If this option is selected you can enter duplicate tax registrations for different parties |
Allow multiple jurisdictions |
Controls whether you can enter multiple concurrent tax jurisdictions for this tax |
None |
None |
If this option is selected you can create multiple concurrent tax jurisdictions for this tax |
Allow mass creation of jurisdictions |
Controls whether mass creation of jurisdictions functionality is allowed using the parent geography and geography setup for this tax |
None |
None |
If this option is selected you can use the mass creation jurisdictions functionality for this tax |
Tax Account Controls Region
Field |
Description |
Default Derived from |
Default Appears on |
Controls |
---|---|---|---|---|
Tax Accounts Creation Method |
Controls whether the tax accounts used for this tax are derived from setup associated with this tax or copied from another tax defined by the Tax Accounts Source field |
None |
None |
When the value is:
|
Tax Accounts Source |
Defines the tax to use to derive the tax accounts to use at transaction time |
None |
None |
Use when the value in the Tax Accounts Creation Method field is Use tax accounts from an existing tax |
Tax Exceptions and Exemptions Controls and Defaults Region
Field |
Description |
Default Derived from |
Default Appears on |
Controls |
---|---|---|---|---|
Allow tax exceptions |
Controls whether tax exceptions are allowed for this tax |
None |
Tax status |
None |
Use tax exceptions from an existing tax | Controls whether tax exceptions are derived from this tax or derived from another tax as specified by the value in the Tax Exceptions Source field for the same transaction | None | None | Controls whether you can define tax exceptions for this tax or if they're derived from those defined against another tax related to the same tax line at transaction time |
Tax Exceptions Source | Defines the tax to use as the source when theUse Tax Exception from an existing tax option is selected | None | None | Used in conjunction with the Use Tax Exception from an existing tax option and uses tax exceptions already created for customers for this tax |
Allow tax exemptions |
Controls whether tax exemptions are allowed for this tax |
None |
Tax status |
None |
Use tax exemptions from an existing tax |
Controls whether tax exemptions are derived from this tax or derived from another tax as specified by the value in the Tax Exemptions Source field for the same transaction |
None |
None |
Controls whether you can define tax exemptions for this tax or if they're derived from those defined against another tax related to the same tax line at transaction time |
Tax Exemptions Source |
Defines the tax to use as the source when the Use Tax Exemption from an existing tax option is selected |
None |
None |
Used in conjunction with the Use tax exemptions from an existing tax option and uses tax exemptions already created for customers for this tax |
Tax Recovery Controls and Defaults Region
Field |
Description |
Default Derived from |
Default Appears on |
Controls |
---|---|---|---|---|
Allow tax recovery |
Controls whether this tax handles tax recovery |
None |
None |
If this option is selected you can set up tax recovery for this tax |