Tax: Oracle Fusion Tax

 

Oracle Fusion Tax Notes
Tax Flow						Not Part of the flow
Regime						Tax Jurisdictions
		Each Tax falls under regime				Tax Recovery Rates
Tax
		Each status falls under tax
Status
		Each Rate falls under status
Rate
							Regime to Rate Flow
							Not in the flow
															this is dotted line
These tax setups can be shared across all the applicable applications, Legal entities and Business units
we need not define separate setups for tax. These setups can be used in Payables and Receivables modules.
Tax Regime
Tax
Tax Status
Tax Rate
Setups
Create Legal Authorities/Reporting Tax Authority (Optional Setup)										Task	Manage Legal Authorities				>>	Legal Authority means the authority which monitors the tax system.
Create Tax Regimes										Task	Manage Tax Regimes
Create Taxes										Task	Manage Taxes				>>	To create Tax select under which Regime you want to create Tax.
Crete Tax Statuses										Task	Manage Tax Statuses
Create Tax Jurisdictions										Task	Manage Tax Jurisdictions
Create Tax Recovery Rates										Task	Manage Tax Recovery Rates
Create Tax Rates										Task	Manage Tax Rates
Create Tax Lookup Codes										Task	Manage Tax Lookup Codes
Create Classification Categories										Task	Manage Classification Categories
Create Party Fiscal Classification										Task	Manage Party Fiscal Classification
Create Tax Determining Factor Sets										Task	Manage Tax Determining Factor Sets
Create Tax Condition Sets										Task	Manage Tax Condition Sets
Create Tax Formulas										Task	Manage Taxable Basis Formulas
Create Tax Rules										Task	Manage Tax Rules
Basic Setups in Oracle Fusion Tax
Create Tax Regime						Task	Manage Tax Regimes
Create Taxes						Task	Manage Taxes
Create Tax Jurisdiction						Task	Manage Tax Jurisdictions
Create Tax Status						Task	Manage Tax Statuses
Create Configuration Owner Tax Option						Task	Manage Configuration Owner Tax Options
Verify Whether Tax is Enabled for USA or Not						Task	Manage Geographies			>>	In this tax verify tax validation is enabled or not.
							>>	In this task we have to clickon Validation Defined and make sure that all the checkboxes are
								enabled for United States Tax Address Format, United States Postal Address Format and No Styles Format.
Run Validate Geographies Job						Path	Navigator >> Tools >> Scheduled Process.					Job	Validate Geographies of Addresses Against Master Geographies.
Parameters
Location Table Name: PER_ADDRESSES_F
Run Type: ALL
Usage Code: TAX
Create Location						Task	Manage Locations
Assign Location to Supplier Site Assignments						Path	Procurement >> Suppliers >> Taskpane >> Manage Suppliers >> Search our Supplier >> goto Sites
							>> Site Assignments >> Here provide Ship to location
Check Taxes are working or not						Task	Manage Taxes		>>	Enable Tax Simulator Checkbox
Simulate Taxes						Task	Manage Simulator Transactions
Create AP Standard Invoice
Tax Regime
Definition: Tax Regime is the set of tax rules and setup that determines the treatment of one or more taxes administered by a tax authority
It is nothing but how one or more taxes are administered by one authority.
Eg : In UK, HMRC, the tax authority administers VAT. HMRC also administer customs duty and also VAT
* The best practice is to create one regime per country
* Under Regime there can be multiple Taxes.
Tax
* Under Regime Tax will be configured
Tax: Tax is a distinct charge imposed through a fiscal or tax authority. Every tax in Fusion Tax is defined under a Tax regime (Eg VAT for UK is Tax).
* These taxes are configured under a regime.
Tax Rate
Tax rate falls under Tax status
Tax Rate is nothing but the rate specified for a tax status in effect for a period of time. The tax rate can be expressed as a percentage or as a value per unit
It is nothing but the specific rate which was defined by the government that we define in the system.
Tax Recovery Rate
The rate of input tax that is allowed to be recovered or offset against output tax
Eg: Business who only produce vegitable goods and recover 100% on most purchases. However, Businesses ( Eg: Financial Institutions) who only produce VAT
exempt goods and service has 0% recoverability.
Tax Status
Tax Status is nothing but the taxable nature of a product/Service in the context of a transaction for a tax type. Eg: Standard rate, Zero rated, exempt etc.,
1. Create Reporting Tax Authority						Task	Manage Legal Authorities				>>	Assign this Legal Authority while creating Reporting Tax Authority
2. Create Tax Regime						Task	Manage Tax Regimes				>>	While creating it we have to assign our Reporting Tax Authority
3. Create Tax						Task	Manage Taxes				>>	Here we have to give our tax regime
* If you enable the checkbox allow override and inclusive tax lines in future system will allow us to
* In Tax Regime we can select either Business Unit or Legal Entity. If you select Business Unit then we are not required to select Legal Entity and if you select Legal
entity then you have to enable the Business Unit for that particular Legal Entity.
* Whatever is set under Global Configuration Owner that can be set to any 'N' number of parties later.