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Prerequisite:
Go To: Tax Manager > Tax Configuration > Tax Regime>Home> Create First Party Legal Entity and Establishment 1: 1.1 Check the Create First Party: Legal Entity & Establishment
Step 1: Create the Tax Regime The tax regime is the highest/ultimate level that taxes are rolled up to, typically, a specific country. In this step, the Controls and Defaults must be set. The Control section outlines 4 options. Once the tax is made live, the control options cannot be changed. The Defaults section will default as applicable to the tax, status, jurisdictions, and tax rate levels, but they can be changed at each level. Go To: Tax Manager > Tax Configuration > Tax Regime 1.1: Press On create
1.2: - Enter Tax regime Code & Name the same - Entry Regime level: Country - Entry Effective date: old date EX: 1-Jan-2000 - Check Boxes: Allow Tax Recovery - Allow Tax Exemptions - Allow Override and Entry of Inclusive Tax Lines - Allow tax inclusion: standard inclusive handling - Default recovery rate: immediate
1.3: - Click Continue Button to Assign Party Name which is the Legal Entity Name
1.4: - Go To: Create Tax Authorities Party Tax Profile from (Parties TAB) -- Choose party type: First party Legal Entity
- Click Update Tax Profile Yellow Pencil to assign the Tax Regime Code through Configuration Option tab Button Note you will find it already Assigned and that step for confirmation only
1.5: - Go To: Create Tax Authorities Party Tax Profile in Home page - Choose party type: Operating Unit Owing Tax Content - Choose Party name: As shown
- Go to Configuration Option Button to assign the Tax Regime code with the Operating Unit Name
Go to Check the Tax Regime Code to verify the Configuration Option to view the assignment of the Legal Entity Name & the Operating Unit Name to the Tax Regime Code
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Step 2: Create the Tax One Tax Regime can have multiple taxes defined under it. The tax type, e.g. sales, VAT, use, is determined when the tax is set up. Taxes can be set up by geography type, which allows for taxes at different levels... For example, in the US, there is can be a tax levied at the State level, one at the County level, and one at the City level. Go To: Tax Manager > Tax Configuration > Taxes 2.1: - Enter the required fields: Tax Regime - Configuration Owner - Tax Source etc In configeration owner : choose Globale Configeration Owner to make the tax aviliable on both of legel entity & Operating Unit
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NOTE: DOES NOT MARK ON Check Box (Make Tax Available for Transaction) till you complete the remaining setup steps as We Going To DO NOTE: Important Do Choose the check box ALLOW PRIMERY RECOVERY RATE determination rules that will make duplicate tax rule and will give you error in calculation tax
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NOTE: THAT THE DEFAULT RECOVERY RATE CODE WILL BE DEFIEDN LATER SO YOU WILL CHOOSE IT WHEN YOU ARE GOING TO FINISH AND MAKE THE TAX AVAILIABLE
Then click on TAX ACCOUNT: To determine the liability account of the tax
Choose TAX code regime Choose TAX name Choose your ledger then press on create
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Step 3: Create the Tax Status This is used primarily in the UK to define reduced rate, zero rate, etc. taxes. All taxes must have at least one tax status defined, and one of those must have the "Set as Default Status" option checked. Go To: Tax Manager > Tax Configuration > Tax Regime Complete the data and press apply
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Step 4: Create the Tax Jurisdiction A tax jurisdiction is a geographic area for which a tax is levied, e.g. Colorado, California, Florida, El Paso County, and Los Angeles. There must be at least one Tax Jurisdiction for each Tax Status with the "Set as default Tax Jurisdiction" selected and the "Default Effective Date" supplied. Go To: Tax Manager > Tax Configuration > Tax Regime Complete the data as shown
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Associated Juristification tax rulesConfiger it after you difine tax rate and you have to define ti to every tax rate you will define
Click on Apply Click on Tax Accounts : Choose the ledger you created and enter the liability account Click on Apply
Step 5: Create the Tax Rate & Recovery Rate Create specific tax rates to be applied for geography. There must be at least one default tax rate. The tax accounts are also set up in this step. 5.1: Go To: Tax Manager > Tax Configuration > Tax Recovery Rate For the Non Recovery tax recovery rate to make it available in tax accounts for the non recovery rate after u define it put the AP ACCRUAL ACCOUNT - Complete Data As Shown - Check on tax accounts that its right from (TAX ACCOUNTS)
17 Made By : Mohamed Elhamy | Tax Codes
5.2: Go To: Tax Manager > Tax Configuration > Tax Rate For the Non Recovery rate to make it available in tax accounts for the non recovery rate after u define it put the AP ACCRUAL ACCOUNT - Complete the data - Define the tax accounts - After Finish Click On Apply
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Step 6: Define Tax Rules Prerequisite: 1- Enter a Tax Determining Factor Set and Name and Click Create to Assign it later to the rules ( And this will Be done to each Regime Code you will Made ( If you Make more than one Regime ) but if you are going to make more than one regime ( You have to check on the check box named : Allow Cross Regime Compounding ) 2- DO this proceed to every rate you will define A) Go To : Tax Manager > Advanced Setup Options > Determine Factor Set
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Insert Determining Factor Class: 'Transaction Input Factor' ( Data Entry From Your Choose ) Insert Determining Factor Name: 'Tax Classification Code' ( Data Entry From Your Choose ) Choose Your Tax Regime Choose Your Ledger Set Usage Choose: Tax Rules In Determining Factor Class Choose : Transaction Input Factor In Determining Factor Name Choose : Tax Classification Code After Finish Click On Apply
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B) Go To : Tax Manager > Advanced Setup Options > Tax Condition Set Enter You Tax Condition Name ( It refers To The Percentage of the Tax ) Enter Name Choose The Determine Factor that you Made Choose Ledger Choose Country Click On Continue
Choose the Operator : Equal To Choose the Value/From Range: Name of your regime And it can be Override Then Click On Finish
3- Make This Step to Assign the Rules To Every Tax Regime you Made Select Your Legal Entity Select Tax Regime Code Select Tax
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Make all the rules for each application are you going to use from event class
Set defaults for the following rule types: Some definitions needed to know it before going to tax rules: For every application AP & AR & PURCHASING choose: Event Class and then choose application and then choose the event that you the tax to effect on but for SALES ORDER in the EVENT CLASS CATEGORY CHOSSE : TAX EVENT CLASSE & EVENT CLASSE : SALES TRANSACTIONS
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Taxable Basis
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- The Last step to after making the tax avaliable for transactions you Default and controls window to make the tax you defiend avaliable on application and the applications can use this tax in the transactions - Make the definations one time for legel entity and seconde time operating unit - Do this step for every appliaction you entend to use tax on it
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After Finish this: GO to: Default and controls > Application Tax Options To arrange the default hierarchy for the tax
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After Finish this: GO to: Default and controls > Application Tax Options To make the Tax Available for the country Default
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And here is Some Profile options you may need to control tax:
eBTax: Allow Ad Hoc Tax Changes
The eBTax: Allow Ad Hoc Tax Changes profile option controls which users can make Ad hoc tax changes on the transaction line, such as selecting a different tax status or tax rate. The changes that a user can make also depend upon the details of the applicable tax setups. If the tax rate associated with a tax has the Allow Ad Hoc Rate option enabled, then users can override the calculated tax rate on the transaction line.
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Applicable users can set up taxes and related configuration data for the global Configuration owner. Legal entities and operating units can then share the global Configuration owner tax setups. See: Configuration Options in Oracle E-Business Tax, Oracle E-Business Tax User Guide For more information.
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