Third-Party Tax Registration Number Defaulting for Receivables Transactions
Automatically assign the third-party tax registration number to Receivables transactions during transaction creation. This improves the accuracy of the tax information presented on Receivables transactions.
The third-party tax registration number belongs to the customer legal entity. You manually assign the third-party tax registration number to the bill-to customer in the Create or Edit Transaction page.
You can optionally enable automatic assignment of the legal entity third-party tax registration number to the bill-to customer during Receivables transaction creation. Transaction creation includes AutoInvoice import, manual creation using the Create Transaction page, and REST API and PL/SQL API web services.
Automatic assignment of the third-party tax registration number is helpful for companies in jurisdictions that require the tax registration number on transactions, and companies that use XML standards for invoicing, where the third-party tax registration number is a required field.
If automatic assignment of the third-party tax registration number is enabled, and no value is provided during transaction creation, the legal entity third-party tax registration number is assigned to the transaction according to the logic in this table.
| # | Check | Match found | Match not found |
|---|---|---|---|
| 1 |
Does the Bill-to Site have a default tax registration number? |
If yes, assign the default tax registration number of the Bill-to Site to the transaction. |
If No, go to the next step #2 |
| 2 |
Does the Bill-to Party have a default tax registration number? |
If yes, assign the default tax registration number of the Bill-to Party to the transaction. |
If No, go to the next step #3 |
| 3 |
Does the Bill-to Party Site have a tax registration number in any of the following countries?
|
Check for a tax registration number for the Bill-to Party Site in the order:
If found, use the tax registration number of that registration. |
If not found, go to the next step #4 |
| 4 |
Does the Bill-to Party have a have a tax registration number in any of the following countries?
|
Check for a tax registration number for the Bill-to Party in the order:
If found, use the tax registration number of that registration. |
If not found, then the third-party tax registration cannot be derived. |
If there are multiple taxes defined for a country, and therefore multiple matches are found, the tax registration number that corresponds to the tax regime and/or tax defined in the Oracle Tax Manage Country Default Controls page for that country is assigned to the transaction.
At the same level, a jurisdiction-specific tax registration is assigned over a tax-specific jurisdiction, and a tax-specific jurisdiction is assigned over a tax-regime-specific jurisdiction.
Business benefits include:
- Support automatic transaction creation processes that require the tax registration number.
- Support invoicing-related XML standards.
Steps to Enable
Enable the automatic assignment of the tax registration number to transactions for each applicable legal entity.
In Oracle Tax, in the Controls and Defaults section of the Edit Legal Entity Tax Profile page, enable the “Assign third-party tax registration number during Receivables transaction creation” option.
Tips And Considerations
Automatic assignment of the tax registration number occurs at transaction creation time only, and not during any transaction edits.
- If you manually enter the third-party tax registration number during transaction creation, then this value is used and the legal entity tax registration number is not assigned.
- Automatic assignment of the tax registration number to credit memos applies to on-account credit memos only created using the Create Transaction: Credit Memo page. It does not apply to credit memos created using the Credit Transaction page.