Case study on how Payables Open Interface works with EB Tax 1.

EBTAX SETUP
The following screen shot shows a basic setup of Regime to Rate Flow where two different rates for Exclusive Tax and Inclusive Tax. This setup will vary depends on the requirement of the Business. Regime to Rate Flow

Tax Regime:

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Tax:

Tax Status:

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Tax Jurisdictions:

Tax Rates: Both the Exclusive and Inclusive Tax rates are defined under the same Regime, Tax, Status and Jurisdictions. Exclusive Tax Rates:

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Rate Details Tab of the above Exclusive Tax Rate window:

Inclusive Tax Rates:

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Rate Details Tab of the above Inclusive Tax Rate window:

For setting the Tax as Inclusive the important setup as highlighted above: Allow Tax Inclusion: Standard Inclusive Handling - Like in Tax Regime setup, set this option so that the price on the transaction line is inclusive of tax. Allow Override and Entry of Inclusive Tax Lines - Lets you change the setting for tax inclusive handling at the tax level.

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Complete and ensure all defaults are set in the Tax Rules. These rules have to be defined as per the Business Requirement.

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2. Case Scenarios
Case Study 1: Calculate Tax during Importing Invoices
Example: One Invoice with one ITEM Line. During the time of Import the system should calculate Tax. In this scenario only one ITEM line needs to be populated in the Interface tables. The following table shows important columns which needs to be populated in the Interface Tables for the Invoice Import Program to work. Invoice interface (AP_INVOICES_INTERFACE) header data:

Column Name
INVOICE_ID INVOICE_NUM CALC_TAX_DURING_IMPORT_FLAG ADD_TAX_TO_INV_AMT_FLAG 2291731 Tax001 Y Y

Value

Invoice interface lines (AP_INVOICE_LINES_INTERFACE) lines data:

Column Name
LINE_NUMBER LINE_TYPE_LOOKUP_CODE AMOUNT LINE_GROUP_NUMBER PRORATE_ACROSS_FLAG TAX_REGIME_CODE TAX_CLASSIFICATION_CODE TAX TAX_STATUS_CODE TAX_RATE_CODE DIST_CODE_COMBINATION_ID 1 ITEM 100

Value

US PMP TAX RATE 12

17347

Submit the Payables Open Interface Import Concurrent Program and observe that the invoice is successfully imported along with the tax line generated during the Import.

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The following screen shot shows the Header in the Invoice Workbench. The Invoice Amount has been added with the Tax amount by the Import due the field ADD_TAX_TO_INV_AMT_FLAG is populated as Y.

The following screen shot shows the Lines in the Invoice Workbench

The following screen shot shows the Invoice Distributions:

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The following screen shot shows the Tax Lines Summary:

Case Study 2: Importing of Exclusive Tax line through Import Program

Example: One Invoice with one ITEM Line of 100 USD and one TAX line (manual and exclusive) of 12 USD. Both the ITEM and the TAX lines would be interfaced and both the lines need to be populated in the Interface Tables. The following table shows important columns which needs to be populated in the Interface Tables for the Invoice Import Program to work. Invoice interface (AP_INVOICES_INTERFACE) header data:

Column Name
INVOICE_ID INVOICE_NUM CALC_TAX_DURING_IMPORT_FLAG ADD_TAX_TO_INV_AMT_FLAG 2291732 Tax002 N Y

Value

Invoice interface lines (AP_INVOICE_LINES_INTERFACE) lines data:

Column Name
LINE_NUMBER LINE_TYPE_LOOKUP_CODE AMOUNT LINE_GROUP_NUMBER PRORATE_ACROSS_FLAG TAX_REGIME_CODE TAX_CLASSIFICATION_CODE TAX TAX_STATUS_CODE TAX_RATE_CODE DIST_CODE_COMBINATION_ID

Value ITEM Line

1 ITEM 100 1

Value TAX Line

2 TAX 12 1 Y US - PMP REGIME US PMP TAX RATE 12 US - PMP TAX US - PMP TAX STATUS US PMP TAX RATE 12

12975

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Submit the Payables Open Interface Import Concurrent Program and observe that the invoice is successfully imported along with the tax line. The following screen shot shows the Header in the Invoice Workbench. The Invoice Amount has been added with the Tax amount by the Import program due the field ADD_TAX_TO_INV_AMT_FLAG is populated as Y. If the field was populated as N, then the Header Invoice Amount would remain as 100 and we have to manually change it to 112 and then validate the Invoice.

The following screen shot shows the Lines in the Invoice Workbench

The following screen shot shows the Invoice Distributions:

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The following screen shot shows the Tax Lines Summary:

Case Study 3: Calculate Inclusive Tax through Import Program

Example: One Invoice with one ITEM Line of 100 USD. During the time of Import the system should calculate the Inclusive Tax. In this scenario only one ITEM line needs to be populated in the Interface tables and the correct Inclusive Tax Classification Code needs to be populated in the lines date for the ITEM Line. The following table shows important columns which needs to be populated in the Interface Tables for the Invoice Import Program to work. Invoice interface (AP_INVOICES_INTERFACE) header data:

Column Name
INVOICE_ID INVOICE_NUM CALC_TAX_DURING_IMPORT_FLAG ADD_TAX_TO_INV_AMT_FLAG 211711 Tax007 Y N

Value

Invoice interface lines (AP_INVOICE_LINES_INTERFACE) lines data:

Column Name
LINE_NUMBER LINE_TYPE_LOOKUP_CODE AMOUNT LINE_GROUP_NUMBER PRORATE_ACROSS_FLAG TAX_REGIME_CODE TAX_CLASSIFICATION_CODE TAX TAX_STATUS_CODE TAX_RATE_CODE DIST_CODE_COMBINATION_ID

Value ITEM Line

1 ITEM 100 1

US PMP TAX RATE 10 (INCL)

12975

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Submit the Payables Open Interface Import Concurrent Program and observe that the invoice is successfully imported. After the Payables Import Process completes, there will be no TAX line inserted for inclusive tax in AP_INVOICE_LINES_ALL and this tax is not visible in Invoice lines region of Invoice workbench. Inclusive tax details can be viewed in Tax Summary and Tax Detail window. Distributions corresponding to the Inclusive tax can be viewed in Invoice Distributions window. The following screen shot shows how the invoice is shown in the Invoice Headers, Invoice Lines, Invoice Distributions and Tax Lines Summary. Invoice Headers and Summary: You can see that the Item Amount has been reduced by the Tax Amount as it is an Inclusive Tax.

Invoice Lines: Here you can observe that no Tax Line are shown.

Invoice Distributions: You can observe the Tax Distribution Line here.

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Tax Lines Summary: The Tax Details and observe the Inclusive Flag is checked.

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