R12 E-Business Tax

Part 2

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 AGENDA
Recap of Basic Set Up
What is a Rule

Concept
Options Available

Analyze a Rule
Methods of defining Rule

Expert Rule
Guided Rule

Fiscal Classification
Product Classification
DEMONSTRATION

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 Regime to Rates flow
Tax Regime United States Tax Regime

Tax Sales & Use Tax

Tax Status Standard

Tax
Jurisdiction California Texas

Tax Rate 10 % 12 %

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 Defaults

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 Rules

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 Rules - Available Options
Any IF THEN condition can be satisfied with Rules

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 Rules over Defaults
Tax Engine

Rules
Yes No

Rules Defaults

Rules always takes precedence over Defaults

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 Analyzing a Rule
Default
Default Tax Applicability = Applicable

Rule
If Ship To State Equal To Texas
And
If Ship from State Equal To New York
Then
Tax Not Applicable

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 Analyzing a Rule

If Ship To State Equal To Texas

Determining Factor Operator Value

Class Qualifier Name

Geography Ship To State

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 Analyzing a Rule

If Ship From State Equal To New York

Determining Factor Operator Value

Class Qualifier Name

Geography Ship From State

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 Reusability of Determining Factor
Set
If Ship To State Equal To Texas

and Ship From State Equal To New York

Tax Rate is Not Applicable

If Ship To State Equal To California

and Ship From State Equal To Florida

Tax Rate is 8.25 %

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 Types of Rules
Tax Rules Entry
Expert Tax Rule Entry

Guided Tax Rule Entry

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 Expert Rule

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 Expert Rule
3 Step Process

Step 1 Determining Factor Set

Step 2 Condition Set

Step 3 Expert Rule

Select Factor Set

Select Condition set and result

Rule order and enable rule

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 Expert Rule
Condition Set

Determining Factor Set Operator Value

If Ship To State Equal To Texas

and Ship From State Equal To New York

Tax Not Applicable

Result
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 Guided Rule

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 Guided Rule
Simpler way of Creating a Rule

Determining Factors Set and Condition Set are created

while defining the Rule

No other pre requisite set up required

5 Step Process

Step 1 - General Information

Step 2 - Rule Condition

Step 3 - Rule Results

Step 4 - Rule Order

Step 5 Factor Set and Condition Set

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 FISCAL
CLASSIFICATION

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 Fiscal Classifications
Fiscal Classification is a way that tax authority classifies

each part of a transaction.

With Fiscal Classification we can group similar determining

factors under one category.

EBTax supports fiscal classification based on :-

Parties involved in the transaction.

Products involved in the transaction.
Nature of the transaction.

Fiscal classifications are primarily used to set up Tax Rules

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 Fiscal Classifications
Product

Part
y

Transaction

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 Product Fiscal
Classification

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 Fiscal Classification
Product Classification
Classification used by tax authorities to categorize

Products.
Products having similar attributes can be grouped

together.
Taxation of most of the countries depends on Product

classification.
Examples of Taxation on Product Classification can be :-

Different tax rates for products falling in category of

Hazardous Goods , Beverages , Raw material , fees etc.

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 Fiscal Classification
Product Classification
Types of Product Classifications
Inventory Based

Non Inventory Based

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 Fiscal Classification
Product Classification Inventory Based
Used only if Oracle Inventory is installed and used

Item

Inventory
Inventory Category Set &
Code

Product Fiscal Classification

EBTax
Rule

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 Fiscal Classification
Rule on Product Fiscal Classification
Default
Default Tax Rate = 10 %

Rule
If Product sold is Milk
Then
Tax Rate = 4 %

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 Demo of
Product Fiscal Classification
Inventory based
Product Classification

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 Demo of
Product Fiscal Classification
Inventory based
Determining Factor Set

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 Demo of Product Fiscal Classification
Inventory based
Condition Set

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 Demo of Product Fiscal Classification
Inventory based
Rule

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 Fiscal Classification
Product Classification Non Inventory
Based
Used when Oracle Inventory is not installed
Can still create Fiscal Classification Based on Products

Manually enter product classification code in transactions

Rule
If product sold is Milk
Then
Tax Rate = 4 %

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 Fiscal Classification
Product Classification Non Inventory
Based
Determining Factor Set

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 Fiscal Classification
Product Classification Non Inventory
Based
Condition Set

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