How You View Inclusive and Exclusive Tax Information in Purchase Orders

You can view inclusive and exclusive tax information, and the nonrecoverable and recoverable components of those taxes, on your purchase orders.

For you to view these tax details, the Inclusive Tax Handling in Procure to Pay Flows feature must be enabled. Related inclusive and exclusive tax setup must also be completed in the Financials offering.

Normally the price entered on a purchase order line is considered as the item price and excludes all taxes. Applicable taxes are calculated on top of the line or schedule amount.

In some countries, tax authority guidelines require transaction taxes to be calculated and tracked as part of the pricing in your transactions. When the inclusive tax handling feature is implemented and set up, the application calculates and tracks details of the taxes on purchase orders processed in Oracle Enterprise Resource Planning Cloud. You can view these tax details in elements of the purchase order header, lines, schedules and distributions.

On the purchase order header:

The Ordered amount includes the item costs and inclusive taxes. Click the link to open the Inclusive Tax dialog box, which displays a summary of the nonrecoverable and recoverable inclusive taxes.
The Total Tax amount includes the exclusive taxes. Click the link to open the Total Tax dialog box, which displays a summary of the nonrecoverable and recoverable exclusive taxes.
The Total amount includes the Ordered amount plus the Total Tax amount.

On the purchase order lines and schedules:

The Ordered and Total Tax amounts also link to the Inclusive Tax and Total Tax dialog boxes, respectively.
Use the View Tax Lines action to open the Tax Lines dialog, which displays details of the nonrecoverable and recoverable taxes. You can also see which taxes are marked as inclusive. Those taxes not marked as inclusive are exclusive.

On the purchase order distributions:

The Ordered and Total Tax amounts also link to the Inclusive Tax and Total Tax dialog boxes, respectively.
Use the View Tax Distributions action to open the Tax Distributions dialog, which displays details of the nonrecoverable and recoverable taxes. This dialog doesn't indicate which taxes are inclusive or exclusive.

You can also view this tax information in the purchase order details and change order pages.