Oracle E-Business Tax

E-Business Tax provides a single point solution for managing your transaction-based tax requirements. E-Business Tax uniformly delivers tax services to all E-Business Suite business flows through one application interface. As global system architecture, E-Business Tax is configurable and scalable for adding and maintaining country-specific tax content.
With E-Business Tax, you can model your tax requirements according to the needs of local and international tax requirements. This includes:
• Both simple and complex country-specific tax legislation.
• Cross-border transactions.
• Local compliance requirements for recording and reporting.
• Continual changes to tax legislation, such as new taxes, local law changes, special tax rates, and special exceptions for products and customers.
You can manage the entire configuration and maintenance of tax content from the one E-Business Tax application. This ensures a uniform tax setup across applications, with a centrally managed system of automated tax services and control over manual intervention and update.

Note: You must have access to the system administrator responsibility to perform many of these tasks.

Setting Up Tax Users -- Optional

Setting Profile Option Values -- Optional

Setting Up Lookup Codes -- Optional

Setting Up TCA Geography Hierarchy -- Optional

Setting Up Legal Entity -- Mandatory

Setting Up Operating Units -- Mandatory

Setting Up Accounts and Accounting Information -- Mandatory

Setting Up TCA Classifications -- Optional

Setting Up Oracle Inventory -- Optional


Responsibilities: (Tax Users) (Optional)

Tax Manager: Main Responsibility for Setups , Configuration etc..

Tax Administrator: Support, normal modifications etc…

Tax simulator: assign to users, to test tax setups, business functionality etc…

U CAN MODIFY THE MENUS AS PER BUSINESS REQUIREMENT.

Profile Options: (Optional)

eBTax: Allow ad hoc Tax Changes : YES

eBTax : Allow manual Tax lines: YES

eBTax: Allow Override of Customer exemptions: YES

eBTax : Allow Override of Tax Classification Code: YES

eBTax : Allow Override of Tax Recovery Rate: NO DEFAULT VALUE

eBTax : Inventory Item for Freight : FREIGHT CHARGE

eBTax : Invoice Freight as Revenue: NO

eBTax : Read / Write Access to GCO Data: YES

eBTax Tax ware: Service Indicator: NON – SERVICE

eBTax Tax ware: Tax selection : JURISDICTION AND TAX

eBTax Tax ware: Use Nexpro : NO

eBTax Vertex: Case Sensitive: YES

eBTax profile options you can update at Site, Application, Responsibility levels.

eBTax Tax ware, eBTax Vertex profile options you can update at Site level only.

Lookup Codes: (Optional)

ZX_INPUT_CLASSIFICATIONS and ZX_OUTPUT_CLASSIFICATIONS

Release 11i tax codes and tax groups migrate to E-Business Tax as tax classification
codes. Payables and Purchasing tax codes migrate as tax classification codes under
ZX_INPUT_CLASSIFICATIONS. Receivables and Projects tax codes migrate as tax
classification codes under ZX_OUTPUT_CLASSIFICATIONS. You can set up additional
tax classification codes for use with a migrated tax data model or as an additional
determining factor in tax determination.

ZX_WEB_EXP_TAX_CLASSIFICATIONS

Internet Expenses related transactions.

ZX_EXEMPTION_REASON_CODE

The use of customer or product tax exemptions issued by the tax authority and applied to specific transactions.

ZX_JEBE_VAT_TRANS_TYPE

Use this lookup code to create tax transaction types for use with tax rate codes. You use transaction types when you set up a tax rate.

ZX_REGISTRATIONS_REASON

Use registration reason codes when you set up a tax registration to represent the reason for the tax registration.

ZX_REGISTRATIONS_TYPE

Use tax registration type codes when you set up a tax registration to organize your tax registrations into categories.

ZX_REGISTRATION_STATUS

Use tax registration status codes as determining factors in tax rules.

AGENT, REGISTERED, NOT REGISTERED.

ZX_TAX_TYPE_CATEGORY

Use tax types when you set up a tax.

SALES, VAT, EXCISE, CUSTOM DUTY & ENVIRONMENTAL.



TCA Geography Hierarchy (Optional)

Set up and maintain the TCA geography hierarchy for each country where you have a
tax requirement. The TCA geography hierarchy provides a single reference source for
all geographical and location-based information for all E-Business Suite applications.

You must set up and maintain the TCA geography hierarchy before you can perform
these tax-related setups:

Legal entities and establishments

Tax zones
Tax regimes
Taxes
Tax jurisdictions
Tax rules

Use TCA administration to maintain these aspects of the geography hierarchy:

Country structure
Geography types
Address validations


Legal Entity (Mandatory)

First party legal entity - The legal entities that represent your company.

First party legal establishments - The legal establishments that have or require tax
registrations, either implied or explicit, from one or more tax authorities.

Legal authorities - The legal authorities that represent the tax authorities in the tax regimes where you do business.

When you set up a legal entity or establishment, you can also set up party tax profile details, including general information, rounding rule, and tax registrations.

Legal Entities

Legal entity before you can perform these tax-related setups:

Party tax profiles
Configuration options
Configuration owner tax options



First Party Legal Establishments

Set up a legal establishment record for each office, service center, warehouse and any other location within the company that requires a registration with a tax authority for one or more taxes. You set up legal establishments under a parent legal entity.

When you set up legal establishments, you can also perform these tax-related setups:

Party tax profiles
Tax registrations

Legal Authorities

Set up a legal authority record for each tax authority that administers taxes in a tax regime where you do business. While not mandatory, you can set up legal authority
records before you perform these tax-related setups:

Tax authority tax profile
Basic tax configuration
Tax regimes, Taxes, Tax jurisdictions
Tax registrations
Tax exemptions

Operating Units (Mandatory)

Set up the operating units that you need to process your tax transactions. An operating unit is an organization that uses Oracle Cash Management, Order Management and Shipping Execution, Oracle Payables, Oracle Purchasing, or Oracle Receivables.

You must set up and maintain operating units before you can perform these tax-related
setups:

Party tax profiles
Tax configuration options
Tax accounts
Configuration owner tax options


Accounts and Accounting Information (Mandatory)

Set up accounts and accounting information for your tax transactions. You must set up
and maintain accounting information before you can set up tax accounts for the
applicable operating units. You set up tax accounts by operating unit for taxes, tax rates, tax jurisdictions, tax recovery rates, and tax registrations of first party legal establishments.

Review and complete these accounting setup tasks according to your requirements:

Ledgers
Legal entity balancing segments
Accounting setup
Complete the accounting setup


TCA Classifications (Optional)

Set up TCA classifications to classify third parties for tax purposes. You can define a TCA class category and class codes specifically for use in tax determination. You can also use standard classifications, such as the US Standard Industrial Classification (SIC) codes, and assign these codes a party fiscal classification.

Must set up and maintain TCA classifications before you can perform these tax-related setups:

Party fiscal classifications
Party tax profiles
Tax rules

Use TCA administration to set up and maintain classifications for use in party fiscal
classifications:

Class category
Allow Multiple Parent Codes
Allow Parent Code Assignment
Allow Multiple Class Code Assignments
Class codes

Oracle Inventory (Optional)

Use the Inventory Item Category functionality in Oracle Inventory to model product
fiscal classifications. You can create either a single product fiscal classification type or a hierarchy of product fiscal classification types that matches the segments of the Inventory category.



FOR MORE INFORMATION PLEASE FOLLOW Oracle® E-Business Tax Implementation Guide.