Troubleshoot Tax Set Up

Troubleshoot problems that happen with your tax setup for Order Management.

Trouble	Shoot
My sales order doesn't include any tax.	A variety of incorrect setups might cause this problem. Here are some set ups you can examine. Make sure you set up the tax profile. For details, see Set Up Tax Profile for Legal Entity. Make sure you set up a tax to apply, by default. Most implementations apply tax according to customer site. For details, see Apply Tax According to Customer Site.
I need to change the tax rate on my sales order starting on a specific date. For example, my local taxing authority changes their tax rate from 7% to 7.5% on October 9, 2020. I use the Manage Configuration Owner Tax Options page to add a new Tax Classification Code with a rate of 7.5%, however, I have a sales order that I already submitted with the 7% rate.	If your sales order. Hasn't passed the Awaiting Shipping status, then you can revise it, change the Tax Classification Code to 7.5%, then resubmit it. Already passed the Awaiting Shipping status, then you must return the order and create a new one with the 7.5% rate. I have no idea here. Is this correct? The tax amount on a sales order is only an estimate, and Order Management doesn't send it to Receivables for invoicing. The tax that Receivables uses depends on the tax effective dates, how you set up your tax classification code, and other attributes that affect tax.

Trouble

Shoot

My sales order doesn't include any tax.

A variety of incorrect setups might cause this problem. Here are some set ups you can examine.

Make sure you set up the tax profile. For details, see Set Up Tax Profile for Legal Entity.
Make sure you set up a tax to apply, by default. Most implementations apply tax according to customer site. For details, see Apply Tax According to Customer Site.

I need to change the tax rate on my sales order starting on a specific date. For example, my local taxing authority changes their tax rate from 7% to 7.5% on October 9, 2020.

I use the Manage Configuration Owner Tax Options page to add a new Tax Classification Code with a rate of 7.5%, however, I have a sales order that I already submitted with the 7% rate.

If your sales order.

Hasn't passed the Awaiting Shipping status, then you can revise it, change the Tax Classification Code to 7.5%, then resubmit it.
Already passed the Awaiting Shipping status, then you must return the order and create a new one with the 7.5% rate. I have no idea here. Is this correct?

The tax amount on a sales order is only an estimate, and Order Management doesn't send it to Receivables for invoicing. The tax that Receivables uses depends on the tax effective dates, how you set up your tax classification code, and other attributes that affect tax.

Tax Determinants

Troubleshoot problems with tax determinants. To set them, you create a sales order in the Order Management work area, add an order line, click the Actions down arrow on the order line, then click Edit Tax Determinants.

Trouble	Shoot
The Product Type attribute in the Edit Tax Determinants dialog has a value that doesn't match the item. For example, the item is the AS54888 Desktop Computer, which is a Goods, but the Product Type attribute contains Services.	Go to the Product Information Management work area, click Tasks > Manage Items, search for, then open your item for editing. Click Specifications > Inventory, then set the Inventory Item attribute to Yes. If the item is a service, such as 3 Year Warranty, but the Product Type attribute in the Order Management work area displays Goods, then set the Inventory Item attribute to No.
I set the Tax Classification Code to a different value and click OK, but the exclusive tax on the sales order doesn't change.	Assume you set the Business Unit to Vision Operations on the sales order. Try this. Enable the feature. Go to the Setup and Maintenance work area, then select Financials next to Setup. Click Change Feature Opt In. On the Opt In Financials page, in the Financials row, click the pencil in the Features column. On the Edit Features page, on the Tax Calculation on Receipt Accounting Distributions row, add a check mark to the Enable option, then click Done > Done. On the Setup Financials page, go to the task. Offering: Financials Functional Area: Transaction Tax Task: Manage Configuration Owner Tax Options. On the Configuration Owner Transaction Tax Options page, search the Configuration Owner attribute for Vision Operations. In the search results, in the row that has Application Name equal to Tax and Event Class equal to Purchase Transaction, set the Regime Determination Set to Standard Tax Classification Codes. For details, see Configure Tax Calculation and Accounting.
I see that the Tax Classification Code attribute contains a value, then submit the order. Sometime later, I create a return for the order, but now the Tax Classification Code is empty.	Order Management uses different lookups for the Tax Classification Code. It uses. ZX_OUTPUT_CLASSIFICATIONS for sales orders ZX_INPUT_CLASSIFICATIONS for return orders Try this. Go to the Setup and Maintenance work area, then go to the task. Offering: Financials Functional Area: Transaction Tax Task: Manage Tax Lookup Codes On the Manage Tax Lookup Codes page, search the Lookup Type attribute for ZX_OUTPUT_CLASSIFICATIONS. In the Financials Generic Lookup Type area, examine the lookup codes. Search the Lookup Type attribute for ZX_INPUT_CLASSIFICATIONS for return orders. In the Financials Generic Lookup Type area, make sure the lookup codes contain the same values that you examined for ZX_OUTPUT_CLASSIFICATIONS. If they don't, add them.
I need to calculate tax for an order line that has a value of zero in the Amount attribute on the line, or I need to calculate tax according to some value other than what I have in the Amount attribute. For example, the Amount attribute contains $35, but I need to assess tax on a value of $30. How do I do this?	Try this. Enable the opt-in feature Specify Business Unit for Selling Profit Center for Goods and Services Tax. You have to enable this feature to get the Edit Tax Determinants dialog to display the Assessable Value attribute. For details, see Set Up Business Units for Selling Profit Centers. Create your order line, open the Edit Tax Determinants dialog, enter 30 in the Assessable Value attribute, then click Submit. Order Management will send a value of 30 as the Assessable Value to Oracle Receivables, and Receivables will calculate tax according to the assessable value 30 instead of the value 35 from the Amount attribute.