1. Implementing Tax
  2. Transaction Business Categories

Transaction Business Categories

Use transaction business categories to classify transaction lines to determine and report tax.

Transaction business categories provide a hierarchy of up to five levels. The first level is predefined with standard events that are supported by Oracle Fusion Tax. The predefined levels are:

  • EXPENSE_REPORT

  • INTERCOMPANY_TRANSACTION

  • PAYMENT_REQUEST

  • PURCHASE_PREPAYMENTTRANSACTION

  • PURCHASE_TRANSACTION

  • SALES_TRANSACTION

  • SALES_TXN_ADJUSTMENT

Use the transaction business category functionality to add additional levels and transaction business categories to these levels.

Note:

You can't add additional level one transaction business categories. You can only add additional transaction business categories that are children, or lower levels, of the predefined level one records.

When defining additional transaction business categories, use the Country field to specify the taxation countries where the transaction business category is used. During transaction time, the taxation country is used to restrict the list of transaction business categories available on the transaction line to those that have been set up with the same country or where the country is blank.

When setting up transaction business categories, leave the Country field blank or use the country name as defined on any parent level of the record that's being added.

Use the Associated Transaction Fiscal Classifications region to link a specific transaction business category to the transaction fiscal classification. You can use this association to allow different transaction business categories to be linked to the same transaction fiscal classification. This helps set up tax rules using a specific transaction fiscal classification instead of creating multiple tax rules for different transaction business categories.

Tip:

While setting up the transaction business categories, use different levels so that you can define all of the necessary tax rules at the highest level possible. This helps minimize the needed number of tax rules.

Transaction Business Categories in Tax Rules

The transaction business category tax determination factors allow you to use the transaction business category in tax rules. A combination of determination factor class, class qualifier, and determining factor represent these determination factors.

Use the transaction generic classification as the determining factor class, the level of the transaction business category being used, level 1, level 2, level 3, level 4, or level 5 as the class qualifier, and transaction business category as the determining factor.

When a country name is specified on the condition set, the application selects only those transaction business categories that match the country name or where the country name is blank on the transaction business category.

Transaction Business Categories at Transaction Time

During transaction time, enter the transaction business category on the transaction line to classify the transaction line for tax determining and reporting purposes.

The transaction business category is stored in the tax reporting ledger and is available for reporting.

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