EBS Tax in OM PDF

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Upcoming: A Ride on "EBTax" in Order Management

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Upcoming: A Ride on "EBTax" in Order Management

Oracle Advisor Webcast

A Ride on "EBTax" in Order Management
Avanti Boinepalli
Anuradha Parthasarathy
December 15, 2015
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The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
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Oracle Advisor Webcast

A Ride on "EBTax" in Order Management
Avanti Boinepalli
Anuradha Parthasarathy
December 15, 2015
Objectives
Understanding E-Business Tax Specific
Setup and Functions in Order
Management
How to set up and use tax rules
Troubleshooting related issues
Agenda
1
Tax in 11i and issues
Ebusiness tax (EBTax)
Basic Tax Configuration
Order Management Setup and Functions
Using E-Business Tax Rules Few Business Cases
Diagnosing & Troubleshooting
Q&A
Issues in 11i
Excessive Dependency on Accounting Clerk
Isolated Tax Solution
Lack of Automation
Limited Scope
E-Business tax (EBTax)
Manage Tax Changes
Automation
Less or No Manual Intervention
Improve Operational Efficiency
Avoid Error due to Human Decisions
React Quickly to Tax Law Changes

Avoid Manual Intensive Regular Software Updates
Reduce Cost of Ongoing Maintenance
E- Business Tax
Local Compliance
Support Strict Reporting Requirements
Mitigate Audit Risks
Integration
Visibility Across E-Business Suite
Reduce Cost of Integration
10

Regime to Rate (R 2 R) flow setup
Regime
Tax
Tax Status
Tax Jurisdiction
Tax Rate
Level that similar taxes governed by common tax rules or laws

are grouped
Charge imposed by a government through a Fiscal or Tax
authority
Taxable nature of a product or service; way to group different
tax rates under a single tax
Geographical area tax is levied by a specific tax authority
Rate specified for a tax status for a period of time
11

Tax Rules - Rule Types
Place of Supply
Determine where the supply is deemed to take place
Tax Applicability
Determine Tax Regime and candidate taxes

Determine applicable Tax Jurisdictions and Taxes
Tax Registration
Determine Registration under which supply will be performed
Tax Status and Tax Rate
Determine tax status for each applicable taxes

Determine tax rate
Evaluate Exemptions and Exceptions
Taxable Basis
Determine Taxable Basis ( Normally Line Amount)
Tax Calculation
Calculate Tax ( Normally, Line Amount * Tax rate)

Perform Rounding
Recovery Rate
Determine Tax Recovery Rate

12
13

Order Type : Tax Event
OM responsibility
(N) Setup > Transaction Types >
Define
Finance tab > Tax Event
Default Value : Entering
14

Receivables Transaction Type : Default tax classification
Receivables responsibility
(N) Setup > Transactions >
Transaction Types
15

Sales Order : Tax Handling
Sales Order > Others tab

Possible Values:
Exempt (E)
Require (R)
Standard (S)
16

Sales Orders : Calculate Tax
Sales Order > Line Items

Actions > Calculate Tax
17

Sales Orders : Tax Details
18

Profile options
EBTax: Allow Override of Tax Classification Code is set to yes at user

level to enable the tax classification code value. By default this value
will be no.
EBTax: Allow Override of Customer Exemptions - to set customer exemptions
19
Using E-Business Tax Rules
20
Location based tax
21
Using E-Business Tax Rules Location Based Tax

Location Based Tax
Apply a tax by name FL TAX in Florida , a State in United States
with below Tax Rules
Case
Ship To City
Tax Rate
1
2
3
4
Jacksonville
ST Cloud
Orlando
Any other City of FL
Do Not Apply
TAX Rate 1%
TAX Rate 5%
TAX Rate 10%
22

Setting up Tax Regime
23

Setting up Tax : FL Tax
24

Setting up Tax Jurisdiction - Jurisdiction FL
25

Setting up Tax Rates
26

Setting up Tax Rules
27

Jacksonville : No Tax
28

Jacksonville : No Tax
Ship To Site with

City Jacksonville
No Tax Applied
29

St Cloud : FL TAX RATE 1%
30

St Cloud : FL TAX RATE 1%
Ship To Site with

City St Cloud
FL TAX RATE 1%
is Applied
31

Orlando : FL TAX RATE 5%
32

Orlando : FL TAX RATE 5%
Ship To Site with

City Orlando
FL TAX RATE 5%
is Applied
33

Any Other City: FL TAX RATE 10%
Ship To Site with

City Orange
Blossom
Default Tax
Applied
34
Tax Classification Code based Tax
35
Using E-Business Tax Rules Tax Classification Code based Tax

Tax Regime and Tax
36

Setting up Tax Classification based Tax Rule
37

Setting up Tax Classification based Tax Rule
38

Tax Classification Code based Rule
Ship To
State: FL
Country: US
39
Diagnosing and Troubleshooting
40

OM APIs
OM_TAX_UTIL.tax_line (OEXUTAXB.pls) Actual Tax Call

zx_global_structures_pkg.trx_line_dist_tbl
OE_DELAYED_REQUESTS_UTIL.process tax (OEXUREQB.pls) Inserts into
Price Adjustments
OM_TAX_UTIL.calculate_tax (OEXUTAXB.pls) On Demand Tax Call
41

Generating Debug Logs: OM Debug Log
Note 121054.1
How to generate a debug file in OM
Profile OM: Debug Level = 5 at User Level

Profile OM: Debug Log Directory a Valid directory (utl_file_dir)
42

OM Debug Log extract
zx_global_structures_pkg.trx_line_dist_tbl parameters for Line
zx_global_structures_pkg.trx_line_dist_tbl.APPLICATION_ID(i)= 660
Entering OM_TAX_UTIL.Debug_msg procedure
i=1
zx_global_structures_pkg.trx_line_dist_tbl.APPLICATION_ID(i)= 660
zx_global_structures_pkg.trx_line_dist_tbl.ENTITY_CODE(i)= OE_ORDER_HEADERS
zx_global_structures_pkg.trx_line_dist_tbl.EVENT_CLASS_CODE(i)= SALES_TRANSACTION_TAX_QUOTE
zx_global_structures_pkg.trx_line_dist_tbl.TRX_ID(i)= 368779
zx_global_structures_pkg.trx_line_dist_tbl.TRX_LEVEL_TYPE(i)= LINE
zx_global_structures_pkg.trx_line_dist_tbl.TRX_LINE_ID(i)= 678225
..
zx_global_structures_pkg.trx_line_dist_tbl.TRX_LINE_DATE(i)= 13-DEC-15
..
zx_global_structures_pkg.trx_line_dist_tbl.LINE_AMT(i)= 1599
zx_global_structures_pkg.trx_line_dist_tbl.TRX_LINE_QUANTITY(i)= 1
..
zx_global_structures_pkg.trx_line_dist_tbl.PRODUCT_ID(i)= 149
..
zx_global_structures_pkg.trx_line_dist_tbl.PRODUCT_ORG_ID(i)= 207
zx_global_structures_pkg.trx_line_dist_tbl.UOM_CODE(i)= Ea
..
Contd
43
zx_global_structures_pkg.trx_line_dist_tbl.SHIP_TO_PARTY_ID(i)= 1005
zx_global_structures_pkg.trx_line_dist_tbl.SHIP_FROM_PARTY_ID(i)= 207
..
zx_global_structures_pkg.trx_line_dist_tbl.SHIP_TO_PARTY_SITE_ID(i)= 121
..
zx_global_structures_pkg.trx_line_dist_tbl.BILL_TO_PARTY_SITE_ID(i)= 1212
..
zx_global_structures_pkg.trx_line_dist_tbl.SHIP_TO_LOCATION_ID(i)= 960
zx_global_structures_pkg.trx_line_dist_tbl.SHIP_FROM_LOCATION_ID(i)= 207
zx_global_structures_pkg.trx_line_dist_tbl.BILL_TO_LOCATION_ID(i)= 960
zx_global_structures_pkg.trx_line_dist_tbl.BILL_FROM_LOCATION_ID(i)= 20795
..
zx_global_structures_pkg.trx_line_dist_tbl.OUTPUT_TAX_CLASSIFICATION_CODE(i)= Location
..
zx_global_structures_pkg.trx_line_dist_tbl.LEGAL_ENTITY_ID(i)= 204
..
Message returned by tax API ZX_API_PUB.calculate_tax: return statusS
tax engine call returned successfully
End tax Line
After Successfully calculating Tax
return status : S
..
Updating tax value from To 0
8825061: Line_ID: 678225
8825061: New Tax Value: 0
44

Generating Debug Logs: Tax Debug Log
Note 417238.1 -- How to obtain and read a debug logfile for R12 E-Business
Tax (EBTAX)
Profile Name
Value
Level
FND: Debug Log

Enabled
Yes
Yes
FND: Debug Log

Filename for MiddleTier
Leave this as
blank
All
Levels
FND: Debug Log Level
Statement
User
FND: Debug Log Mode
Synchronous
Site
FND: Debug Log

Module
User
SELECT MAX(log_sequence) start_log_sequence

FROM fnd_log_messages;
Reproduce the issue
select module, message_text message
from fnd_log_messages
where log_sequence >
&log_sequence_obtained_above
order by log_sequence;
message_text is the log information
45

Reading a Tax Debug Log
Search for Database errors:

Search for the string "ORA-"
Search for Return Status messages:
Search for strings
1) Return_Status = E
2) Return_Status = U
Tax Debug Log
46

Diagnostic Test : EBTax Tax Setup
Applications Diagnostics: (N) Diagnose > Select Application > E-Business Tax
> Setup > Select EBTax Tax Setup > Execute
TEST OUTPUT
47

Verify the Tax Rule setup (N) Tax Managers > Tax Configuration > Tax Rules
48

Generating Debug Logs: Ebtxract
Note 1061743.1 -- How to Generate Debug Log for EBTax Issues (Using
Debug Extract :EBTXTRACT.SQL)
SQL> @ebtxtract.sql
Enter value for start_log_sequence: 84702497
Enter value for stop_log_sequence: 84712974
ebtxtract output
49
Diagnosing and Troubleshooting Common Setup Issues

Issue 1:
Tax Code is not defaulting on the Order Line
Cause :
Either the Tax Code defaulting hierarchy is not defined or the Default tax
classification is not enabled on AR transaction type
Resolution :
Define Application Tax Options for the Operating Unit in question and
Receivables application. (N) Tax Manager > Defaults and Controls >
Application Tax Options.
Also ensure "Default tax classification" check box is checked on the AR
Transaction Type. (N) AR > Setup > Transactions > Transaction Type
50

Issue 2:
Total Tax Amount on the Order is different than that on the AR Invoice and
the difference is due to rounding
Cause :
Order Management calls the Tax engine line by line and hence Header Level
rounding does not happen , causing the minor difference
Resolution :
To enable Header Level Rounding, set the profile option
OM: Delay Tax Calculation to Yes. (N) System Administrator > System Profiles
51

Issue 3:
Tax is calculated in Receivables but not in Order Management
Cause :
Tax Rule(s) is defined that is limiting the tax to Receivables
Resolution :
If a Tax is meant for specific transactions only (Order-to-Cash module ),
ensure there is no Tax Rule created with Event Class = Invoice. This should
be Tax Event Class and value Sales Transaction
(N)Tax Manager > Tax Configuration > Tax Rules > verify the above on all
enabled Rules
52
Summary
Regime to Rate Flow
Tax Rules
Make Tax available for transactions
Tax in OM
Delay Tax Calculation
53
Resources
Oracle EBTax Community
Doc ID 1133994.1 -- R12: Ebtax: How Location Based Tax Works in R12 EBusiness Tax (EBTax) - Includes sample setup
Doc ID 789455.1 -- Troubleshooting Order Management R12 E-Business
Tax (EBTax) Calculation Issues
Doc ID 564080.1 -- R12.0.6+ : E-Business Tax EBTax Setup Test
Doc ID 1107666.1 -- How to Setup and Troubleshoot a Product Fiscal
Classification (Inventory Based) Tax Rule in R12 E-Business Tax (EBTax)
54
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Your question will be read aloud in
the order received.
Question can also be asked on the
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55
Top Articles and Community Links

Information Center
E-Business Tax [ID 1336674.2]
Order Management [ID 1395754.2]
Advisor Webcast Schedule and Archived

Recordings [ID 740966.1].
Continue the Discussion on the following My
Oracle Support Communities.
E-Business Tax
Order Management
Webcast Survey After Todays Session.

56
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line, select *1 on your phone.
Q&A
To ask a question online, use the

Chat area at the top.
Your question will be read aloud in
the order received.
Question can also be asked on the
My Oracle Support Communities
57
THANK YOU
58

Order Management Information Center [ID
1395754.2].
Order Management (OM) Advisor Webcast
Calendar/Archive [ID 1288737.1].
Oracle Advisor Webcast Schedule [ID
740966.1].
Continue the Discussion on the Order
Management My Oracle Support Community.
What advisor webcast topics do YOU want to
see presented?
59

Advanced Pricing Information Center [ID
1393917.2].
Order Management (OM) Advisor Webcast
Calendar/Archive [ID 1288737.1].
Oracle Advisor Webcast Schedule [ID
740966.1].
Continue the Discussion on the Order
Management My Oracle Support Community.
What advisor webcast topics do YOU want to
see presented?
60
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ATTENTION AUDIO Options

Option 1: Voice Streaming Audio Broadcast

Option 2: Teleconference (Dial In)

No need to dial in on a telephone

Requires telephone to dial in

Upcoming: A Ride on "EBTax" in Order Management

Upcoming Advisor Webcast Schedule

Check out Doc ID : 740966.1

Upcoming: A Ride on "EBTax" in Order Management

Oracle Advisor Webcast

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Safe Harbor Statement

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Oracle Advisor Webcast

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Tax in 11i and issues

Ebusiness tax (EBTax)

Basic Tax Configuration

Order Management Setup and Functions

Using E-Business Tax Rules Few Business Cases

Diagnosing & Troubleshooting

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

E-Business tax (EBTax)

Manage Tax Changes

React Quickly to Tax Law Changes

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Basic Tax Configuration

Level that similar taxes governed by common tax rules or laws

Rate specified for a tax status for a period of time

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Basic Tax Configuration

Determine where the supply is deemed to take place

Determine Tax Regime and candidate taxes

Determine Registration under which supply will be performed

Tax Status and Tax Rate

Determine tax status for each applicable taxes

Determine Taxable Basis ( Normally Line Amount)

Calculate Tax ( Normally, Line Amount * Tax rate)

Determine Tax Recovery Rate

Order Management Setup and Functions

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Order Management Setup and Functions

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Order Management Setup and Functions

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Order Management Setup and Functions

Sales Order > Others tab

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Order Management Setup and Functions

Sales Order > Line Items

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Order Management Setup and Functions

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Order Management Setup and Functions

EBTax: Allow Override of Tax Classification Code is set to yes at user

EBTax: Allow Override of Customer Exemptions - to set customer exemptions

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Using E-Business Tax Rules

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Location based tax

Copyright 2015 Oracle and/or its affiliates. All rights reserved. |

Using E-Business Tax Rules Location Based Tax