https://support.oracle.com/CSP/main/article?cmd=show&type=NOT&...

R12: How to Setup Tax Exemption in Ebusiness Tax for

Suppliers. [ID 602863.1]

Modified 24-MAY-2010 Type HOWTO Status PUBLISHED

In this Document
Goal
Solution

Applies to:

Oracle Payables - Version: 12.0.0 to 12.0.5 - Release: 12 to 12

Oracle E-Business Tax - Version: 12.0 to 12.0.5 [Release: 12 to 12]
Information in this document applies to any platform.

Goal

How To Setup Tax Exemption In E-business Tax For Suppliers?

For certain Suppliers, the Tax Exempt classification should be set so that no tax is added to the AP invoice, during
the validation/calculation of tax process.

The following provides step-by-step instructions on how to accomplish this.

Solution

1. Navigate to Trading Community Manager Responsibitly > Trading Community: Administration > Classifications
2. Click on "Create Class Category"
3. Enter values for
Class Category ::
Class Category Meaning ::
Class Category Description ::
Delimiter :: leave it default
4. Under "Assign Entities"
Ensure that you select the default
Select :: tick mark
Table Name :: HZ_PARTIES
Condition (Where Clause) :: WHERE PARTY_TYPE = 'ORGANIZATION'
5. Click on "Apply and Create Class Codes"
6. Enter values for the following
Class Code :: for example "NO TAX"
Meaning :: "NO TAX"
Description :: No Tax for party X
7. Click on Apply
8. Click on compile
9. Now Requery the class category ...
10. You should see the associated class codes
11. Navigate to Tax Managers Responsibility > Parties > Party Classification
12. Create
13. Provide the following values
Party Classification ::
Fiscal Classification Type Code ::
Name ::
Effective From ::
14. Under the "Associated Tax Regimes" region
Regime Code ::
Name ::
Effective From ::
15. Apply & save

1 of 3 09/08/2010 12:14
 https://support.oracle.com/CSP/main/article?cmd=show&type=NOT&i...

16. Navigate to Tax Managers Responsibility > Parties > Party Tax Profiles
17. Query for Party Type :: Third Party
Party Name :: X
Click on update tax profile
Ensure that the "Allow Tax Applicability" is not enabled
18. Click on Classifications Tab
For Fiscal Classification Type Code ::
Fiscal Classification Code :: NO TAX
Fiscal Classification Name :: NO TAX
Effective From ::
19. Click on Apply
20. Navigate to Tax Managers Responsibility > Advanced Setup Options > Tax Determining Factor Sets
21. Click on Create
22. Enter the following values
Tax Determining Factor Set ::
Name ::
Ledger ::
Regime Code ::
Determining Factor Class :: Party Fiscal Classification
Class Qualifier :: Ship to Party
Determining Factor Name ::
23. Click on Apply
24. Navigate to Tax Managers Responsibility > Advanced Setup Options > Tax Condition Sets
25. Click on Create
Enter values for
Tax Condition Set ::
Name ::
Determining Factor Set::
Country Name:: United States
26. Click on Continue
27. Enter value for
Value/From Range ::NO TAX
28. Click on Finish
29. Navigate to Tax Managers Responsibility >Tax Configuration > Tax Rules
30. Create a "Determine Tax Applicability" Rule using the previously created Tax Determining Factor Set & Tax
Condition Set
31. Ensure that when you create this rule set the applicability to "Not Applicable"
32. Save
33. Bounce the Apache Server
34. Create a new invoice to the supplier 'X'
35. Click "Calculate Tax" no tax gets calculated

Please note that ...the above steps are done so that system does not calculate tax on a particular party (supplier)
automatically....but still if user needs to have tax for this invoice...they can create a manual
tax line

<<End_of_Article>> FOLDER:EBS.Fin.EBusinessTax TOPIC:Fiscal Classification DOCUMENT-ID:602863.1 ALIAS:

SOURCE:AWIZ 6919211.993 DOCUMENT-TYPE:HOWTO ZCXTECH TITLE:R12: How to Setup Tax Exemption in
Ebusiness Tax for Suppliers. IMPACT:LOW SKILL-LEVEL:NOVICE STATUS:PUBLISHED
DISTRIBUTION:EXTERNAL ZCXPUBLIC ZCXCURRENT AUTHOR:MJKRISHN.IN KEYWORD:TAX~EXEMPTIONS
KEYWORD:R12 KEYWORD:CONFIGURATION KEYWORD:E-BUSINESS~TAX KEYWORD:SETUP~OPTIONS
PRODID-501 COMPONENT:EBTAXAP.EBTAX_INTG MINVER:12.0.0 MAXVER:12.0.5 PRODID-1087
COMPONENT:TAXPROFILE.REGISTRATION MINVER:12.0 MAXVER:12.0.5 PORTID-0 FDRSEG-1061
FDRSEG-101 FDRSEG-16

Related

Products

Oracle E-Business Suite > Financial Management > Procure to Pay > Oracle Payables

2 of 3 09/08/2010 12:14
 https://support.oracle.com/CSP/main/article?cmd=show&type=NOT&i...

Oracle E-Business Suite > Financial Management > Financials Common Modules > Oracle E-Business Tax

Keywords

CONFIGURATION; SETUP~OPTIONS; TAX~EXEMPTIONS; R12; E-BUSINESS~TAX

Back to top

3 of 3 09/08/2010 12:14