How tax is coming on Purchase Order based on Purchasing category?

1) Create a Tax Rate Rule like below:

Go in Manage Tax Rule-> Choose Tax Rules type: Tax Rate Rules

2) Complete the information like below:

-Rule code: PURCHASING_CATEGORY
-Rule name: Purchasing_Category
-Tax Condition Set=Tax Condition Name: PURCHASING_CATEGORY
-Result: Here it is necessary to insert tax rate that you are expecting to be calcualted for that
Purchasing category
-Tax Determining Factor Class: Transaction Input factor
Tax Determining Factor Name: Purchasing Category
-Operator: Equal
-Value or From Range: DM_Category1.
Here is necessary to insert Purchasing category for that you want that tax inserted at Result
field to be calculated.

Don’t forget to enable this tax rule.

 3) After you completed all the above information press Submit Button.

For more information please read this documentation:

https://cloudcustomerconnect.oracle.com/posts/7857aba0ab

Please open this attachment:

Setting up Tax Rates for Purchasing Categories.docx