AIM

BR.100 Setup document

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Creation Date: January 20, 2012

Last Updated: January 29, 2012

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Version: 1 .0

Location: C:\User s\Pu blic\Docu m en ts\Wh itepa per s\EBT\Or a cle EBTa x Setu pDocu m en t BR1 00 .docx

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Contents

Geography Structure Definition

Geography Validations

Loading Geography / Compile Geographies - HR_LOCATIONS & HZ LOCATIONS Loads into Sy stem

Define Class Categories & Codes for Fiscal Classifications

Define Item Ty pe

Define Inventory Category

Define Inventory Category Set

Define Tax authority

Define Tax Authority Party Tax Profile

Define Tax Regime

Tax Regime Party Subscriptions

Self Assessment First Party Legal Establishment

Application Tax options

Define Product Classifications

Define User Item Ty pe

Define Product Category under Product Classifications Update>Create

Define Party Fiscal Classifications

Country Defaults for US

Define Configuration Owner Tax Options - Enable Taxes for PO Event Ty pes andDisable for AR Events

Enable Configuration Owner Options

Open and Closed Issues for this Deliverable

Open IssuesClosed Issues

1.To update the table of contents, put the cursorany where in the table and press [F9]. To changethe number of levels display ed, select the menuoption Insert >Index and Tables, make sure theTable of Contents tab is active, and change theNumber of Levels to a new value.

Geography Structure Definition

Use the geographic settings in E-Business Tax to define the taxes and tax rates at each geographiclevel in your countries of operation. E-Business Tax uses the TCA master geography hierarchy todetermine the relationships between countries and the territories and geographical regions within acountry that belong to them.

This is the first Step that needs to be done as part of the EBTax Setup in R12

Navigate to Trading Community Manager Responsibility. The below screenshot shows the navigation

> >

In Trading Community Manager (TCM)>Geography Hierarchy

Click | Next Page

Geography Validations

For example, the structure for the United States is defined in this way: Country is the parent of State,State is the parent of County, County is the parent of City, and City is the parent of Postal Code.E-Business Tax uses this structure to help determine the taxes and tax rates that apply to eachgeographic entity within the United States. In this way, a sales transaction that takes place in a citymay include taxes at the state, county, and city level.

Click | Manage Valiadtions

Manage ValidationsMapping Locations Looks for these 3 values.This Option shows only warning while entering supplier State Country and City details even though they doesntexist in TCAHZ is third parties (Vendors)HR is receiv ing company (Internal locations)

Mapping LocationsInternal Locations

Delete

Loading Geography / Compile Geographies - HR_LOCATIONS & HZLOCATIONS Loads into System

Oracle Apps Tax Manager>View>Request>Submit Request>Request Set

RUN for HR locations also.

System would not let new location have tax validations if this is not run after location is added.

Define Class Categories & Codes for Fiscal Classifications

Take screen print of request IDs created during this step.

Location: TCM

Create Class Category

Define Item Type

Inventory Responsibilities>Setup Items>Item Types

Save ater each code.

Can copy and paste between fields.

Click on Icon for new record

Addresses Catalog Items.

Define Inventory Category

Create a Inventory Category Code with the following details

Inventory>Setup>Items>Categories>Category Codes

For Non-Catalog

Find Category: Non%

Copy and paste from EBSD to new Instance

Save.

Define Inventory Category Set

Inventory>Setup>Items>Categories>Categories Set

Define Tax authority

Use the Oracle Legal Entity Manager to set up each tax authority as a legal authority for transactiontax.

Set up a tax profile for each of your tax authority party records. The tax authority party tax profileidentifies a tax authority party as a collecting authority and/or a reporting authority. A collecting taxauthority manages the administration of tax remittances. A reporting tax authority receives andprocesses all company transaction tax reports.

Location: Legal Entity Manager>Setup>Legal Authorities

Sy stem Generated will not be the same

The collecting and reporting tax authorities appear in the corresponding list of values on all applicableE-Business Tax pages. All tax authorities are available in the list of values as an issuing tax authority.

Define Tax Authority Party Tax Profile

Tax Manager>Parties>Party Tax Profiles

Define Tax Regime

Tax Manager>Tax Config>Tax Regimes>Create

Uncheck

Tax Regime Party Subscriptions

What is a Tax Regime?In Oracle E-Business Tax, a Tax Regime is the system of regulations for the determination andadministration of one or more taxes.

The common tax regime setup is one tax regime per country per tax type, with the tax requirementsadministered by a government tax authority for the entire country. There are also cases where taxregimes are defined for standard geographical types or subdivisions of a country, such as a state,province, county, or city. In these cases, you base the tax regime on the Trading CommunityArchitecture (TCA) standard geography.

Self Assessment First Party Legal Establishment

Tax Manager>Parties>Party Tax Profiles>Update Tax Profile

Check

Go to Tax Registration, click on Create, and complete Issuing Tax Authority

Application Tax options

Tax Manager>Defaults & Controls>Application Tax Options>Update

Must Be Blank

Must Be Blank

Define Product Classifications

Tax Manager>Products>Product Classifications

Case Sensitive

Set up party fiscal classifications for the parties and party sites involved in your transactions that havea tax requirement. A party fiscal classification determines, for example, when taxes apply to a party,how much tax applies, and what percentage of the tax is recoverable. These tax requirements areusually defined by the tax authority for the taxes of a given tax regime.

Set up party fiscal classifications for your first parties, customers and customer sites, and suppliers andsupplier sites. Update the legal classification tax usage of legal activity codes according to your taxdetermination and tax reporting requirements.

Define User Item Type

Tax Manager>Products>Product Classifications

Set up product fiscal classifications to classify products that have a tax requirement for taxdetermination or tax reporting purposes. You set up product fiscal classifications according to thetaxable nature of a product or product transaction, as designated by a tax authority.

Define an Inventory-based product fiscal classification type against an Oracle Inventory category set.The product fiscal classification is defaulted on the transaction line for any item that belongs to theinventory category set. The category values defined for the inventory category set become fiscalclassification codes belonging to the product fiscal classification type.

Define Product Category under Product ClassificationsUpdate>Create

Define product fiscal classification types using the non-Inventory based E-Business Tax productcategory. You can designate a default product fiscal classification for a specific product, or a list of

product fiscal classifications assigned to a particular country. Use the E-Business Tax product categoryto:

Classify products for taxes if you do not use Oracle Inventory.Create country-specific product fiscal classifications.Create product fiscal classifications for items that are not a good.

Create ad hoc product fiscal classifications without reference to an inventory item, for example, if youare making product purchases that are not a part of your standard business processes.

Define Party Fiscal Classifications

Party fiscal classifications: Classify your customers and suppliers and their locations for use in taxdetermination. In some countries, the tax authority provides the specific party fiscal classification touse.

Country Defaults for US

Tax Manager>Defaults & Controls>Country Defaults

Set up information at the country level that you want to default to the applicable E-Business Tax andlegal entity setups. Country default controls let you designate transaction tax-related values in thecountries that you do business. You can update these default values on the applicable pages.

The list of values in the country default control fields each contain all of the values that you havepreviously set up. For tax regimes and taxes, the list of values is restricted to the country-specificvalues. You should ensure that you have completed all of your applicable setup before setting countrydefault controls.

Define Configuration Owner Tax Options - Enable Taxes for PO EventTypes and Disable for AR Events

DO THESE NEXT STEPS LAST

Disabled all 11.5.7 COTOs and Enabled R12 COTOs on October 19, 2009 @ 11.20 AM

Set up configuration owner tax options for a combination of configuration owner and application eventclass. You can update some of the E-Business Tax predefined event class settings for a particularconfiguration owner. You can also update migrated tax option settings for configuration ownersmigrated from Release 11i.

If you are using Direct Tax Rate Determination with tax classification codes and migrated tax data, thenyou must set up configuration owner tax options using the STCC regime determination set for theapplicable configuration owner and event class.

Configuration owner tax options let a configuration owner update default tax options on transactionsthat belong to a specific application event class. At transaction time, E-Business Tax uses the taxoption settings of the configuration owner and application event class instead of the default settings.

Enable Configuration Owner Options

This is a screen shot of one of the enabled taxes in R12. In this area we checked the box for Make Tax Availablefor Transactions. This was done for all tax setups.

Open and Closed Issues for this Deliverable

1.Add open issues that y ou identify while writing orrev iewing this document to the open issuessection. As y ou resolve issues, move them to theclosed issues section and keep the issue ID thesame. Include an explanation of the resolution.

When this deliverable is complete, any open issuesshould be transferred to the project- orprocess-level Risk and Issue Log (PJM.CR.040)and managed using a project-level Risk and IssueForm (PJM.CR.040). In addition, the open itemsshould remain in the open issues section of thisdeliverable, but flagged in the resolution columnas being transferred.

Open Issues

ID Issue Resolution Responsibility TargetDate

ImpactDate

Closed Issues

ID Issue Resolution Responsibility TargetDate

ImpactDate