Simulating Tax on Transaction Data
Use the Tax Simulator to validate new and existing tax setup for procure-to-pay and order-to-cash transactions.
The format of the Tax Simulator interface is a lightweight version of the procure-to-pay and order-to-cash work areas, allowing ease of data entry and flow of item lines to tax calculation and tax lines.
In addition to manual entry of transaction data, you can copy live data to view or modify in the Tax Simulator. You can purge the data using a process request.
The Tax Simulator gives you visibility into transaction attributes that impact tax calculation, including:
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Required transaction attributes
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Additional tax attributes
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Reference, adjusted, and applied documents
Required Transaction Attributes
The required fields for transaction entry and tax calculation are:
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Document Event Class
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Document Date
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Legal Entity
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Business Unit
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Currency
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Supplier
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Customer
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Line Amount
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Line Type
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Line level:
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Line Class
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Line Type
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Item
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Product Type
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Additional Tax Attributes
In addition to the required fields for transaction entry and tax calculation, the Tax Simulator gives you visibility into additional tax attributes that are commonly used to drive tax calculation based on tax rules.
The following additional tax attributes are organized in a tabbed region for entry and update:
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Header level:
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Taxation Country
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First-Party Tax Registration Number
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Third-Party Tax Registration
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Ship-from Location
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Line Level:
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Line Class
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Item
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Product Type
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Tax Inclusive
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Transaction Business Category
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Assessable Value
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Tax Classification
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Product Category
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Intended Use
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Product Fiscal Classification
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User-Defined Fiscal Classification
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Location of Final Discharge
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Account
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All of these attributes can drive tax determination or tax calculation directly based on tax rules and tax formulas.
Reference, Adjusted, and Applied Documents
Reference, adjusted, and applied documents can have tax calculation impacted by the documents they're associated with. The Tax Simulator presents information on some of the impacts. Others, such as variances in distributions, aren't presented since accounting isn't part of the Tax Simulator functionality.
When a document is simulated or copied in the Tax Simulator, the application doesn't copy referencing, adjusted, and applied documents. You must copy each document separately and associate them in the Tax Simulator.
The following is a list of the available event classes and associations that can be made in the Tax Simulator:
Application |
Header Level Document Event Class |
Item Line Attribute Line Class |
Reference, Adjusted, and Applied Tab: Document Event Class |
Reference, Adjusted, and Applied Tab: Document Number |
Reference, Adjusted, and Applied Tab: Document Date |
Reference, Adjusted, and Applied Tab: Document Line Number |
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Payables |
Standard Invoice |
Invoice |
Purchase Order (not required) |
Select the purchase order document number. |
Populated when the document number is selected and it's read only. |
When you enter the document number of the purchase order this list is available with the respective invoice lines. |
Payables |
Standard Invoice |
Prepayment |
Prepayment Invoice |
Select the prepayment invoice number. |
Populated when the document number is selected and it's read only. |
When you enter the document number of the prepayment invoice this list is available with the respective prepay invoice lines. |
Payables |
Standard Invoice |
Credit Memo |
Standard Invoice |
Select the credit memo document number. |
Populated when the document number is selected and it's read only. |
When you enter the document number of the invoice this list is available with the respective invoice lines. |
Payables |
Prepayment Invoice |
Column not displayed |
Tab not displayed |
Tab not displayed |
Tab not displayed |
Tab not displayed |
Purchasing |
Purchase Order |
Column not displayed |
Tab not displayed |
Tab not displayed |
Tab not displayed |
Tab not displayed |
Receivables |
Invoice |
Column not displayed |
Tab not displayed |
Tab not displayed |
Tab not displayed |
Tab not displayed |
Receivables |
Credit Memo |
Column not displayed |
Invoice |
Required |
Populated when the document number is selected and it's read only. |
When you enter the document number of the invoice this list is available with the respective invoice lines. |