Configure Tax Calculation and Accounting

Configure the following to automatically calculate and account taxes. You must have the Application Implementation Consultant role to do these tasks.

• In the Offerings work area, enable the Tax Calculation on Receipt Accounting Distributions feature at the Financials offering level.

• Enable delivery-based tax calculation for invoices:

  1. In the Setup and Maintenance work area, use the Manage Configuration Owner Tax task:

     • Offering: Financials

     • Functional Area: Transaction Tax

     • Task: Manage Configuration Owner Tax

  2. From the Configuration Owner drop-down list, select the relevant business unit.

  3. From the Application Name drop-down list, select Payables.

  4. From the Event Class drop-down list, select Standard Invoices.

  5. From the Tax Point Basis drop-down list, select Invoice.

  6. From the Tax Point Date drop-down list, select Receipt Date.

     For more information about configuring and calculating taxes, see the Oracle Fusion Cloud Financials: Using Tax guide available on the Oracle Help Center.

• Configure the application to automatically calculate taxes for trade receipt accrual:

  1. In the Setup and Maintenance work area, go to the following:

     • Offering: Manufacturing and Supply Chain Materials Management

     • Functional Area: Supply Chain Financial Flows

     • Task: Manage Supply Chain Financial Orchestration System Options

  2. Select Calculate tax for trade receipt accrual.

• Configure the application to automatically calculate and account nonrecoverable taxes on intercompany invoices:

  1. Navigate to the Financial Orchestration work area.

  2. In the Tasks pane, click Manage Documentation and Accounting Rules.

  3. Click the required documentation and accounting rule.

  4. Under Required Tasks, select Intercompany Invoices.