Oracle Payables Integration with E-Business Tax

•Tax Classification Code (Backward Compatibility) •User manually enters the tax code or have it defaulted on the invoice line to calculate taxes. •E-Business Tax can be setup in the following ways. a common tax engine used across applications to calculate taxes and generate tax distributions.Payables Integration / EBTax Overview •Payables integrates with E-Business Tax. * . •Rule Based Applicability •An example is taxes are automatically calculated based on the location.

•Invoice Header •Taxation Country •Legal Entity •Invoice Lines •Ship To Location •Product Type •Product Category * . Some of the key attributes are listed here.Rule Based Applicability •The tax engine uses all the relevant attributes on the invoice header and lines to determine what taxes are applicable. This set of attributes are referred to as the tax determination factors.

Tax Event Classes •Payables has seeded the following event classes in E-Business Tax. Credit Memo. •Standard Invoices •Includes Standard. Mixed Invoices. Navigation: Defaults and Controls – Configuration Owner Tax Options * . •Prepayment Invoices •Expense Reports These can be updated using Tax Administrator Responsibility. The deploying company could configure rules so that tax handling could be different for each of these documents. Debit Memo.

Inclusive/Exclusive Taxes •E-Business Tax will determine if a given tax is inclusive or exclusive. •In case of exclusive taxes. •Exceptions •PO matched invoices: Taxes are always exclusive •Expense Reports: Taxes are always inclusive * . •For inclusive taxes. Payables will create a separate invoice tax line. the item line will be updated to indicate it has included tax amounts.

Data Model * .

E-Business Tax can be configured to compute the tax as selfassessed for the invoices from Dell. * . rules will be applied to transaction data to determine what tax is due and what was actually charged by the supplier.Self Assessed Taxes •With E-Business Tax. They are based in Texas where there is no sales tax. These are primarily used for accounting. •An example is Oracle procuring from Dell. •SA Tax Distributions are stored in ap_self_assessed_tax_dist_all. Oracle is liable to pay IRS the sales tax. •Self Assessed Tax Lines are not stored in AP. But. Any taxes that are not charged by the supplier can be automatically generated as self assessed.

* . Tax. •After the invoice is validated or has tax calculated. Status and Tax Rate are mandatory. •Alternately. user can enter a Tax Classification Code on a tax line and rest of the attributes regime. tax.Manual Tax Lines •Manual entry of tax lines in the invoice lines region is supported in limited scenarios. user needs to enter a manual tax line from the tax details window. status and tax rate are defaulted. •Taxes are exclusive •Invoice has not gone through tax calculation or invoice validation •Tax Regime.

This is controlled by column calc_tax_during_import_flag in ap_invoices_interface. The required tax attributes like the regime. Invoice Import only defaulted the tax codes onto the invoice lines. * . This is set so that validation will not apply a line variance hold on the imported invoice. status and the tax rate are required. tax can be calculated during import. •Setting column add_tax_to_inv_amt_flag to ‘Y’. •In R12. There was no tax calculation.Invoice Import •Prior to R12. tax. Columns prorate_across_all_items and line_group_number are used for allocations. will update the invoice amount with the calculated tax amount. •Manual Tax Lines can be allocated to specific Item lines during invoice import. •Manual Tax Lines can be imported into AP.

•The following tax variance distributions are created in R12. Variance was stored in * . •TRV – Tax Rate Variance •TIPV – Tax Invoice Price Variance •TERV – Tax Exchange Rate Variance •E-Business Tax only creates Recoverable and Non Recoverable Tax Distributions. It stores tax variance determining attributes on the NonRecoverable tax distribution. •In 11i. there were no separate tax variance distributions. •AP uses these attributes to further split the Non-Recoverable Tax distribution into the respective variance distributions if there is a tax variance. column invoice_price_variance.Tax Variance •Tax Variance distributions are generated for invoices matched to PO or Receipt.

Tax lines will not be presented to the user in the Apply/Un-apply Prepayments window. Taxes are calculated during prepayment application. (Applied Amount Handling) When a non-recoverable tax distribution is fetched from E-Business Tax that has a difference between the amount and the prorated amount. It will appear as if we are applying the taxes as well. The calculation mode is setup in E-Business Tax at the tax level. However. E-Business Tax will actually do the calculation. the distribution created by Payables will have a non-zero value (amount minus Prorated amount) populated in prepay_tax_diff_amount.Prepayment Application •Exclusive Taxes When tax is exclusive. behind the scenes. the included tax amount is displayed on the window. •Inclusive Taxes When users are applying prepayments. * .

Payables does not control the data manipulation in these windows. Every time changes happen through these windows. * . Any changes to data made in these windows will be directly stored in the tax repository. Summary Tax Lines – From Invoice Header Detail Tax Lines – From Invoice Lines Tax Distributions – From Invoice Distributions •The tax windows are owned by E-Business Tax and built on top of the tax repository.Tax Detail Windows •Payables will provide links to three E-Business Tax windows. Payables will synchronize its data with the tax repository and will refresh the Invoice window to show the most current data.

fmb We have four object groups that are sub-classed from this form. If you delete and recreate we loose our custom logic. The program units in these are "stubs" from ZX. We have coded AP specific logic in the invoice workbench after sub-classing. * .$ZX_TOP/forms/US/ZXTRLLINEDISTUI.Key E-Business Tax Objects •Tables •Transaction Data – zx_lines_det_factors •Summary Tax Lines – zx_lines_summary •Detail Tax Lines – zx_lines •Tax Distributions – zx_rec_nrec_dist •Forms •Tax Windows . ZX_TRX_LINE_STAT_OG ZX_LINES_OBJECT_GROUP ZX_DISTRIBUTIONS_OG ZX_TRX_DIST_STAT_OBJECT_GROUP Do not delete and recreate ZX_TRX_LINE_STAT_OG and ZX_TRX_DIST_STAT_OBJECT_GROUP.

Troubleshooting •Tax Calculation Errors •For troubleshooting or filing a bug. •Product ID: 1087 * . The UI objects are sub-classed in the Invoice Workbench. enable statement level fnd logging. reproduce the issue and provide data from fnd_log_messages. •Tax Details Window issues •E-Business Tax team owns Tax Lines and the Distributions window. Any issues here need to be handled by E-Business Tax team. This will give a good picture of the code path and the failure location.

Invoice Flow * .

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