HOW TO SETUP TAX

EXEMPTION IN EBUSINESS TAX

FOR SUPPLIERS.
Posted by Raju ERP
Goal:
How To Setup Tax Exemption In E-business Tax For Suppliers?
For certain Suppliers, the Tax Exempt classification should be set so that no tax is added to the
AP invoice, during the validation/calculation of tax process.
The following provides step-by-step instructions on how to accomplish this.
Fix:

1) Navigate to Trading Community Manager Responsibitly > Trading Community:

Administration >
Classifications
2) Click on "Create Class Category"
3) Enter values for
Class Category ::
Class Category Meaning ::
Class Category Description ::
Delimiter :: leave it default
4) Under "Assign Entities"
Ensure that you select the default
Select :: tick mark

Table Name :: HZ_PARTIES

Condition (Where Clause) :: WHERE PARTY_TYPE = 'ORGANIZATION'
5) Click on "Apply and Create Class Codes"
6) Enter values for the following
Class Code :: for example "NO TAX"
Meaning :: "NO TAX"
Description :: No Tax for party X
7) Click on Apply
8) Click on compile
9) Now Requery the class category ...
10) You should see the associated class codes
11) Navigate to Tax Managers Responsibility > Parties > Party Classification
12) Create
13) Provide the following values
Party Classification ::
Fiscal Classification Type Code ::
Name ::
Effective From ::
14) Under the "Associated Tax Regimes" region
Regime Code ::
Name ::
Effective From ::
Apply & save

15) Navigate to Tax Managers Responsibility > Parties > Party Tax Profiles
16) Query for Party Type :: Third Party
Party Name :: X
Click on update tax profile
Ensure that the "Allow Tax Applicability" is not enabled
17) Click on Classifications Tab
For Fiscal Classification Type Code ::
Fiscal Classification Code :: NO TAX
Fiscal Classification Name :: NO TAX
Effective From ::
Click on Apply
18) Navigate to Tax Managers Responsibility > Advanced Setup Options > Tax Determining
Factor Sets
Click on Create
Enter the following values
Tax Determining Factor Set ::
Name ::
Ledger ::
Regime Code ::
Determining Factor Class :: Party Fiscal Classification
Class Qualifier :: Ship from Party
Determining Factor Name ::
Click on Apply
19) Navigate to Tax Managers Responsibility > Advanced Setup Options > Tax Condition Sets
Click on Create
Enter values for
Tax Condition Set ::
Name ::
Determining Factor Set::
Country Name:: United States

Click on Continue
Enter value for
Value/From Range ::NO TAX
Click on Finish
20) Navigate to Tax Managers Responsibility >Tax Configuration > Tax Rules
Create a "Determine Tax Applicability" Rule using the previously created Tax Determining
Factor Set & Tax Condition Set
Ensure that when you create this rule set the applicability to "Not Applicable"
Save
Bounce the Apache Server
Create a new invoice to the supplier 'X'
Click "Calculate Tax" no tax gets calculated
Please note that ...the above steps are done so that system does not calculate tax on a particular
party (supplier) automatically....but still if user needs to have tax for this invoice...they can create
a manual
tax line

http://orafinappssetups.blogspot.in/2013/01/how-to-setup-tax-exemption-inebusiness.html