Application Setup Document

How to setup Oracle Applications R12: EB Tax

Document Title : Oracle EbTax Setup Document

Author : Asokan Thangaraju

BR100 document Oracle R12 EB Tax

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BR100 document Oracle R12 EB Tax

Index

Introduction.................................................................................................................................................................4
Define Party Tax Profiles............................................................................................................................................5
Define Tax Regimes....................................................................................................................................................6
Define Taxes................................................................................................................................................................7
Define Tax Statuses.....................................................................................................................................................8
Define Tax Jurisdictions..............................................................................................................................................9
Define Tax Recovery Rates.......................................................................................................................................10
Define Tax Rates.......................................................................................................................................................11
Define Tax Rules and Defaults.................................................................................................................................12
Define Application Tax Options................................................................................................................................13
Define Profile Options..............................................................................................................................................14

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Introduction

The objective of the document is to provide all the required setup steps for the Oracle Applications R12
E-Business Tax Module. The setup steps are given below and sample setup data are embedded in the
Excels for each step. Ireland is used as a sample country for this setup document.

In 11.5.10 the Tax Setup was relatively easier but in Release 12 Oracle has launched a separate Central
Tax Module called E-Business Tax. There is a number of setup steps required for the EB Tax module to
work. These are discussed in this document with a sample setup data for Ireland.

Scope:

The intention is to refer to this document as a sample BR100 for the R12 EB Tax Module only. For the
detailed Tax Module functionality or further study the reader is advised to refer the EB Tax
Implementation Guide and EB Tax User Guide.
 BR100 document Oracle R12 EB Tax

Define Party Tax Profiles

Function Id : ZX-008
Application : Oracle EBTax
Function/Screen Path : Tax Manager>Party>Party Profiles
Function/Screen Description : Use this page to define Party Tax Profiles for you Legal Entity and Operating Unit. Unless you setup the
Party Tax Profile for an Operating Unit, you cannot setup the Receivable Activities in AR.

Setup the Party Tax Profiles as per the attached excels.

"Party Tax Profile - "Party Tax Profile -

LE.xls" OU.xls"

Note: This is the first step in Tax Setup. After we define the Party Tax Profile, we then need to attach that Party with the Tax Regime.
Unless this is done, we cannot the Legal Entity or the Operating Unit as the Configuration Owner.
If we use the Legal Entity as the Configuration Owner, the tax will be visible across the instance irrespective of the Legal Entity or
Operating Unit.
If we use the Operating Unit as the Configuration Owner, the tax will be visible only under the specific Operating Unit.

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BR100 document Oracle R12 EB Tax

Define Tax Regimes

Function Id : ZX-001
Application : Oracle EBTax
Function/Screen Path : Tax Manager>Tax Configuration>Tax Regimes
Function/Screen Description :

Description: Use this form to define Tax Regimes.

Setup the Tax Regime as per the attached Excel

"Tax Regimes.xls"

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BR100 document Oracle R12 EB Tax

Define Taxes
Function Id : ZX-002
Application : Oracle EBTax
Function/Screen Path : Tax Manager>Tax Configuration>Taxes

Function/Screen Description : Use this page to define the Taxes Required.

Setup the Taxes as per the attached Excel

Taxes.xls

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BR100 document Oracle R12 EB Tax

Define Tax Statuses

Function Id : ZX-003
Application : Oracle EBTax
Function/Screen Path : Tax Manager>Tax Configuration>Tax Statuses
Function/Screen Description : Use this Page to define the Tax Statuses.

Setup the Tax Statuses as per the attached Excel

"Tax Statuses.xls"

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BR100 document Oracle R12 EB Tax

Define Tax Jurisdictions

Function Id : ZX-004
Application : Oracle EBTax
Function/Screen Path : Tax Manager>Tax Configuration>Jurisdictions
Function/Screen Description : Use this page to define Tax Jurisdictions

Setup the Tax Jurisdiction as per the attached Excel

"Tax
Jurisdictions.xls"

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BR100 document Oracle R12 EB Tax

Define Tax Recovery Rates

Function Id : ZX-005
Application : Oracle EBTax
Function/Screen Path : Tax Manager>Tax Configuration>Tax Recovery Rates
Function/Screen Description : Use this Page to define Tax Recovery Rates for each Tax which has ‘Allow Tax Recovery’ Checkbox
checked

Setup the Tax Recovery Rates as per the attached Excel.

"Tax Recovery
Rates.xls"

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BR100 document Oracle R12 EB Tax

Define Tax Rates

Function Id : ZX-006
Application : Oracle EBTax
Function/Screen Path : Tax Manager>Tax Configuration>Tax Rates
Function/Screen Description : Use this Page to define the Tax Rates for Each Tax. The defined Tax rates are automatically also defined as
Tax Classification Codes in the Application Object Library Lookup Types ZX_INPUT_CLASSIFICATIONS and
ZX_OUTPUT_CLASSIFICATIONS. These Tax Classification Codes are then used as a Transaction Tax Determining factor while creating Tax
Rules.

Setup the Tax Rates as per the attached Excel.

"Tax Rates.xls"

Remove the AP Tax classification codes from ZX_OUTPUT_CLASSIFICATIONS and remove the AR tax classification codes from
ZX_INPUT_CLASSIFICATIONS.

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BR100 document Oracle R12 EB Tax

Define Tax Rules and Defaults

Function Id : ZX-007
Application : Oracle EBTax
Function/Screen Path : Tax Manager>Tax Configuration>Tax Rules
Function/Screen Description : Use this section to define the Tax Rules and the Tax Rule Defaults

Setup the Tax Rules and Defaults as per the attached Excel

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 BR100 document Oracle R12 EB Tax

Define Application Tax Options

Function Id : ZX-009
Application : Oracle EBTax
Function/Screen Path : Tax Manager>Defaults and Controls > Application Tax Options
Function/Screen Description : Use this Screen to Create the Defaulting Rule hierarchy for the Tax Classification Codes

Operating unit Application Defaulting Defaulting Defaulting Defaulting Defaulting Tax

Order1 Order2 Order3 Order4 Order5 Determination
Method(Only
for
Receivables)
Operating Unit Name Payables Supplier Site Supplier Expense Report
Template
Operating Unit Name Receivables Customer Site Product Oracle E-
Business Tax
Operating Unit Name Purchasing Supplier Site Supplier

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BR100 document Oracle R12 EB Tax

Define Profile Options

Function Id : ZX-009
Application : Oracle EBTax
Function/Screen Path : Profile -> System

Profile Site Application Responsibility User

LOV Char Char Char Char
IE_Tax Managers
GL Ledger Name Ledger Name Ledger Name
MO: Operating Unit Operating Unit Name Operating Unit Name
Sequential Numbering Partially Used Partially Used

FA: Security Profile

HR: Business Group Business Group Name
HR: Security Profile Business Group Name
Default Country Ireland

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