Tax Reporting Processes

Tax reporting processes provide a single solution to meet global and country-specific tax reporting requirements.

You can create tax reports in preliminary or final mode, and mark transactions as finally reported. Tax reporting processes help you when the tax reporting calendar is different from the ledger calendar.

Tax reporting is based on these parameters:

Tax registration number
Tax reporting entity, which is uniquely defined by the tax registration number, tax regime, and tax calendar
Tax reporting level can be one of these values:
- Ledger
- Legal entity
- Tax registration number

When you prepare your tax returns, run the tax reporting processes by legal entity and tax registration number. Legal entities and the associated tax registration numbers are aligned with how your businesses are legally recognized by government authorities. Preparing reports by tax registration number enables you to view all activities that can be reported for a given legal entity in your business.

The tax reporting processes include:

Tax Reporting Selection Process
Tax Final Reporting Process

Tax Reporting Selection Process

Use the Tax Reporting Selection Process to:

Select and mark the transactions you want to report.
Run tax reports in a preliminary mode.
Review transactions selected for reporting.
Make corrections before submitting the reports to the tax authority.

The tax reporting selection process marks transactions selected for tax reporting with an application generated tax reporting identifier. The tax reporting identifier consists of the parameter values you provide when running the Tax Reporting Selection Process. For example tax reporting context, such as ledger name or legal entity name.

Tax Final Reporting Process

Use the Tax Final Reporting Process to:

Control transactions that can't be changed once the reports are filed with the tax authorities.
Verify and correct tax details before finalizing the reports.

Once you generate the final reports, the tax period is closed to prevent updates or double reporting. Report updates as corrections in the subsequent periods.