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Table of Contents

1. Purpose of the document ............................................................................................................................................... 2

2. Assumptions and Prerequisites ....................................................................................................................................... 2

3. Transaction Entry ............................................................................................................................................................ 3

4. Common Report Parameters .......................................................................................................................................... 5

5. Other Parameters ........................................................................................................................................................... 7

6. Report source .................................................................................................................................................................. 7

7. Financial Tax Register ...................................................................................................................................................... 8

8. Tax Audit Trail Report ................................................................................................................................................... 10

9. Tax Register Report ....................................................................................................................................................... 12

10. Tax Reconciliation Report ......................................................................................................................................... 15

11. Tax Reconciliation by Taxable Account ..................................................................................................................... 17

12. Interim Tax Register Report ...................................................................................................................................... 20

13. Sales Tax Report ........................................................................................................................................................ 22

ERP CLOUD

Transaction Tax Reports

Oracle Financials for EMEA

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1. Purpose of the document

Transaction tax reports contain reports for reconciliation, audit, management and business reporting. All these reports

are aimed to help you keep tax ledgers and tax reporting in order.

This document explains the implementation and usage guidelines for the following transaction tax reports:

Financial Tax Register Report - reports tax information created in Oracle Receivables, Oracle Payables and Oracle

Tax repository, including recoverable and non-recoverable taxes.

Tax Audit Trail Report - identifies detailed tax and invoice information and the total amounts for each tax rate

code in the ledger currency.

Tax Register Report - identifies total tax amounts by tax type, tax class and company to include exempt amount

and total tax amount for transactions entered in Receivables and Tax repository.

Tax Reconciliation Report - lists the transaction line amounts and tax amounts, by tax account, of all Receivables

and Tax repository taxable transactions for a given period.

Tax Reconciliation by Taxable Account Report - lists taxable transaction information for Payables, Receivables

and Tax repository transactions. Generates subtotals by company, tax type, taxable account and tax rate code.

Sales Tax Report - provides all of the transaction details from Receivables and Tax repository including invoices,

credit memos, adjustments and tax repository entries. It is used as the basis for the periodic sales tax returns

required by each state. Also, provides a summary of the total amount exempt for each reason. The Sales Tax

Report is intended to report on location based sales tax and should be used for e.g. reporting on value added

tax.

Interim Tax Register - identifies detailed and summary information of unpaid or partially paid Payables and

Receivables transactions that have tax liability created at the payment date.

The document explains the pre-requisite setup, important transaction entry aspects, report output details and the

business flow. The transaction tax reports can be used for any country without any country specific setup. In this

document we are using examples from a Spanish tax setup for illustrations.

2. Assumptions and Prerequisites In this document, the following entities are assumed to have already been set up:

Data Security – Refer to the Fusion Security topical essay available on cloud.oracle.com

Geographies

Enterprise Structure

Tax Regime to Rate setup

Tax Party Profiles for both first parties (legal entities) and third parties (customers and suppliers)

Tax Rules

Suppliers

Customers

Procurement Business Function

Common Options for Payables and Receivables

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It is recommended that the ‘Implementation Project’ is complete for your organization before you enter transactions

and use the transaction tax reports. If you require further details, refer to the Analyze and Report section of Oracle

Financials Cloud (Get Started) web site.

3. Transaction Entry Navigation: Navigator –> Receivables -> Billing

The receivables transaction below is an example used in the sample report outputs later on in this document.

The invoice lines have the following tax rates applied:

The following accounting has been created for the invoice:

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Navigation: Navigator –> Payables -> Invoices

The payables invoice below is an example used in the sample report outputs later on in this document.

The invoice lines have the following tax rates applied:

The following accounting has been created for the invoice:

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4. Common Report Parameters The transaction tax reports use several common parameters across multiple reports as described in the table below.

Parameter Name Required Description

Reporting Level Yes Select Ledger, Legal Entity or Tax Registration Number based on

your reporting needs.

Reporting Context Yes – if Reporting

Level is Ledger or

Legal Entity

Select from the list of ledgers or legal entities. The list depends

on the value of the Reporting Level parameter.

Tax Registration Number Yes - if Reporting

Level is Tax

Registration

Number

Select from the list of Tax Registration Numbers. This parameter

is optional if Reporting Level is Legal Entity and mandatory if

Reporting Level is Tax Registration Number. Users can create a

group of legal entities with the same Tax Registration Number

that composes so called VAT Group Registrations. Reporting by

Tax Registration Number provides the option to report for

multiple legal entities using the same Tax Registration Number.

Reports can be run for a VAT Group as long as the related legal

entities are associated with the same primary ledger.

Company Name No Select the company name to be printed in the report header if

the Reporting Level is Ledger. The list of values contains each

legal entity associated with the ledger selected for the reporting

context parameter. The company name parameter is not used

as selection criteria only for displaying the report name in the

header.

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Parameter Name Required Description

Summarization level Yes Select the summarization level based on your reporting needs.

It is available only for some of the reports. It is possible to

include or exclude transaction lines or run the report at

transaction, transaction line or distribution level. The reports

for which different summarization level options are available

are

Financial Tax Register

Tax Register

Tax Reconciliation Report

Sales Tax Report

Date range parameters None are

mandatory, but at

least one pair of

the from/to dates

has to be specified

Enter the accounting/transaction/tax point date ranges to filter

transactions. This is available for most reports. Reports run by

tax point date range display only transactions that reached their

tax point date event. For example, transactions that have tax

point basis set to payment date will not be reported until they

are paid and reports are run by tax point date range. The

Interim Tax Register is an exception to this rule (see details in

the Interim Tax Register Report section).

Tax Regime, Tax, Tax

Jurisdiction, Tax Rate

No Select from the list to filter transactions based on the specific

regime, tax, rate etc that they are associated with.

Tax Reporting Type, Tax

Reporting Code

No These parameters provide the possibility to set up a user

defined criteria for tax reporting. The tax reporting types can

be associated with several tax entities. For example, set up Tax

Reporting Type and Tax Reporting Codes to identify the type of

supply e.g. Goods or Services and select from the list to filter for

transactions based on type of supply.

Transfer to General

Ledger

Yes Select to filter transactions based on the transferred status to

include only transferred, not transferred transactions or all

transactions regardless of transfer status.

Include parameters No except for some Some of the reports have a range of ‘include’ parameters that

enable the users to have only specific types of transactions on

the report output. For example, select ‘Include Invoices’ as

‘Yes’ and other Include parameters to ‘No’, to include only

invoices in the report. By default all these parameter are set to

include the widest range or transaction types. To narrow the

report scope down the user has to update the values to ‘No’ for

the transaction types that are to be excluded.

Include Finally Reported No Select the value as ‘Yes’ to select only finally reported

transactions or enter ‘No’ to report only on transactions that

are not yet finally reported. This parameter is used in countries

where the transactions are required to be ‘finally reported’ at

the end of the tax reporting period. By default this parameter is

set to include all transactions.

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5. Other Parameters

The transaction tax reports use several other parameters unique to some reports as described in the table below.

Parameter Name

Description Financial Tax

Register

Tax Audit Trail

Report

Tax Reconcilia

tion Report

Tax Reconcilia

tion by Taxable Account

Tax Register Report

Interim Tax

Register Report

Register Type Select to report only

recoverable taxes, non-

recoverable taxes or both

recoverable and non-

recoverable taxes

√ X X X √ X

Accounting

Status

Select to report only

accounted transactions,

only unaccounted

transactions or both

accounted and

unaccounted transactions

√ X X X √ X

Order By Select among the different

options to display the

report

X √ X X √ X

Currency/Curr

ency range

Select to filter transactions

based on currency

√ X X √ √ X

Accounting

Period range

Select to filter transactions

based on accounting

period

X √ X X X X

Account Specify different

conditions for account

code combinations to filter

transactions

X X √ √ X X

6. Report source The following table lists the source supported by each transaction tax report.

Source Financial Tax Register

Tax Audit Trail Report

Tax Register Report

Tax Reconciliation Report

Tax Reconciliation by Taxable Account

Interim Tax Register Report

Input Tax √ √ X X √ √

Output Tax √ X √ √ √ √

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Input tax transactions include documents entered in Payables, and purchase journals and purchase transactions

entered in tax repository (also known as manual tax journals). Output tax transactions are documents entered in

Receivables, and sales journals and sales transactions enteredtransactions entered in tax repository (manual tax

journals).

7. Financial Tax Register Navigation: Navigator –> Tools -> Scheduled Processes

The Financial Tax Register Report has many parameters to help the user to get the specific information on the report

output. Use the Financial Tax Register to export tax records. Define BI Publisher templates based on the information

needed for your requirements to facilitate data extraction in various formats such as Excel and CSV.

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Financial Tax Register Report includes transactions from Payables, Receivables and Tax Repository. The report can be

used to review individual transactions, item and tax amounts before tax is declared. Accounting information is also

included when the report is run at distribution level.

If the report is run by transaction date range, the transaction date is included in the report output. If the user runs the

report by from/to accounting date, the accounting date of the transaction is reported. Specifying the from/to tax point

dates at report submission means that the tax point date is reported on the output.

The report output shows the list of transactions that meet the reporting criteria in the entered currency. It includes

transactions from payables, receivables and also tax journals (external tax transactions) showing the item and tax

amounts with the third party name and tax registration number included. There is a column for related transaction that

shows for example the identifier of the original transaction for adjustments or the invoice associated with a credit

memo.

There is a possibility to run the Financial Tax Register report by tax register type. The interim tax register part of the

report has been removed and this requirement is met by providing the new Interim Tax Register Report.

The report can be run for non-recoverable tax register which for payables transactions displays the non-recoverable part

of the tax rate applied.

The data extract also includes several other attributes that are not displayed on the standard report output. It is

possible to customize the report templates (for all reports) and include/exclude transaction attributes as required.

8. Tax Audit Trail Report Navigation: Navigator –> Tools -> Scheduled Processes

The Tax Audit Trail Report can be used to reconcile payables invoices and external tax transactions at end of the

accounting and/or tax reporting period. The report can be submitted using the following parameters:

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The Tax Audit Trail report includes transactions from Payables and Tax Repository. The report has two possible layouts

and they are used based on the value selected for the ‘Report Order by’ parameter.

When the report is ordered by invoices the data on the report output is grouped by accounting periods regardless of

what taxes are applied to the invoices. Period totals and invoice count is also displayed for each accounting period as

well as for the entire report.

When the report is ordered by tax code the data is grouped by tax rates, but also displayed by the accounting period

within the same tax rate. Total amounts are provided for each period, tax rate and there also totals for the entire

report.

9. Tax Register Report Navigation: Navigator –> Tools -> Scheduled Processes

The Tax Register Report has many parameters to help the user to get the specific information on the report output:

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The Tax Register Report includes transactions from Receivables and entries from Tax repository. It includes more

detailed information about each transaction than the Financial Tax Register report including

Transaction header information as transaction number, related transaction, transaction type, third party

information including name, site and TRN, total transaction line and total tax amount

Transaction line level information as line number and description, line and tax amount, tax rate name and rate

(%) and tax exemption reason.

The report is summarized for currency, tax type and tax rate

10. Tax Reconciliation Report Navigation: Navigator –> Tools -> Scheduled Processes

The Tax Reconciliation Report has the following report parameters to help the user to perform the required account

reconciliation:

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The Tax Reconciliation Report lists the transactions entered in Receivables and entries from Tax repository, by the tax

account. The report does not include information regarding to the tax rate, tax jurisdiction or tax regime.

The report has an account filter parameter that allows you to specify criteria based on any segment of the accounting

code combination. For example, you can filter on a single Natural Account or a range of Natural Account values.

11. Tax Reconciliation by Taxable Account Navigation: Navigator –> Tools -> Scheduled Processes

The Tax Reconciliation by Taxable Account Report has many parameters to help the user to get the specific information

on the report output:

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The Tax Reconciliation by Taxable Account Report lists transactions from Receivables, Payables and entries from Tax

repository. Unlike in the Tax Reconciliation report, transactions are grouped by the taxable account (typically the

expense account in payables and the revenue account in receivables). Data are also grouped by company, tax type and

tax rate which is also different from the tax reconciliation report.

12. Interim Tax Register Report Navigation: Navigator –> Tools -> Scheduled Processes

The Interim Tax Register Report has fewer parameters than most transaction tax reports mainly because the report has

been designed to display a specific type of transactions.

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The Interim Tax Register Report helps to plan for tax liability due in the future. The report output includes tax amount

for transaction lines where the tax becomes liable only after the transaction has been fully or partially paid. In such

cases, the tax rate applied to the transaction has the tax point date set as the payment date. Payables and Receivables

transactions appear on the Interim Tax Register report until they are fully paid. Note that the report does not support

transactions with tax point bases 'payment’ imported to the tax repository.

The report lists transaction at line level and the summary sections have totals by Tax Rate Codes and Tax Rates.

The report also has the option to print reporting sequences associated with the transactions. If used, the user can

specify what should be the starting sequence number for the first transaction printed on the report. If Print Sequence

Number is ‘Yes’ and From Sequence Number is blank, the report prints reporting sequences starting with ‘1’.

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Once the invoices are fully paid, they will no longer appear in the Interim Tax Register report.

13. Sales Tax Report Navigation: Navigator –> Tools -> Scheduled Processes

The Sales Tax Report should be used only to report on location based sales taxes and should not be used for other tax

types like value added tax. The report has the following submission parameters:

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The main difference between the Sales Tax report and other transaction tax reports is that the Sales Tax report focuses

on reporting by tax jurisdictions that are set up based on geographic location e.g. tax jurisdiction for states, counties and

cities.

The report provides detailed transaction header and line level information including the transaction type and number,

third party information, tax rate and tax rate code, exemption reason if any, and line and tax amounts.

As mentioned above, the information is grouped by tax jurisdiction and totals are provided for each transaction type

within the tax jurisdiction and for the whole tax jurisdiction for the reported period.

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