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E-Business Tax provides a single point solution for managing your transaction-based tax
requirements. E-Business Tax uniformly delivers tax services to all E-Business Suite business
flows through one application interface. As a global system architecture, E-Business Tax is
configurable and scalable for adding and maintaining country-specific tax content.
Tax Authority=>A goverment entity that regulates tax law, administers, and/or audits
one or more taxes
Tax Regime=>The set of Tax rules that determine the treatment of one or more taxes
administered by tax authority.That is the set of laws and regulations that determines the
treatment of one or more taxes.
Tax status=>The taxable nature of a product in the context of a transaction for a tax
Tax rates=>The rates specified for a tax status for a given time period. The tax rate
is expressed as a percentage, a value per unit quantity, or a fixed sum per transaction.
Tax Jurisdiction=>A geographical area where a tax is levied by a special tax authority
Determine Tax Applicability Determines the taxes that apply to a given transaction.
Determine Tax Registration Determines the tax registration status for the applicable
taxes of the parties involved in the transaction.
Determine Tax Status Determines the tax status of each applicable tax to use on the
transaction.
Determine Tax Rate Determines the tax rate for each applicable tax status to use on
the transaction.
Pre-Requisites
1. Navigate to Tax Manager->Parties->Party Tax Profiles and Query for the following:
Party Name: Vision Operations (Name of the OU you wish to setup for tax)
If this is checked, then the OU is set to use the subscription from Legal Entity. The regime is then
subscribed (in a later step) to the First Party Legal Entity rather than the Operating Unit Owning
Tax Content.
This is a one time setup and the value cannot be toggled. So enable this only after you determine
you want to use this setup.
In our case its Checked and therefore we need to set our Tax Regime up against First Party Legal
Entity and NOT against the Operating Unit
Steps
Step 1: Create Tax Regime
4. Enter your operating unit in Party Name.If it prompts to select Party Type, select First Party
Legal Entity in our case.
If Use Subscription of the Legal Entity was unchecked then Party Type would have been
Operating Unit Owning Tax Content
Also select Configuration for Taxes and Rules as Common Configuration & Effective
date.Then click Finish button.
2. Enter the following information under Show Controls and Defaults section :
Note: Enter Tax Regime created in step 1 & Tax created in step2
Step 4: Create Jurisdiction
1. Navigate to Tax Manager->Tax Configuration->Tax Jurisdictions and click on Create button.
2. Enter details as in screenshot and click on Apply button.
Then click on Rate Details button and scroll down to other details section.Enable Set as Default
Rate and set the Effective From date.
3. Click apply so it comes to Create Tax Rate page and then click Apply button again.
Step 6: Enter Tax Accounts
1. Navigate to Tax Manager->Tax Configuration->Taxes, query Country & the tax we had
created before and click on Go button.
4. Enter the Operating Unit and Tax Expense & Tax Recoverable/Liability account
5. Click Apply button so it will come to Tax Accounts page and click Apply button again.Again
once more click Apply button.
Step 7: Create Tax Rules
1. Navigate to Tax Manager->Tax Configuration->Tax Rules and query Configuration
Owner,Tax Regime Code & Tax and click Go button.
2.Click the pencil icon in the Set Default column to change any of the defaults defined.Update
the defaults as follows:
2. Enable the Check-box Make Tax Available for Transactions and click Apply button.
Note:It might throw warning This tax does not have an exchange rate type. Are you sure you
want to enable this tax?,click Yes button for this since we know we didnt enter an exchange
rate type.
Testing
1. Create an invoice with Ship-To location at line level containing an United States location.Save
the invoice after entering the distribution details and click on Calculate Tax Button.Now you can
see the Tax line created at Line Level.
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Its used to withhold taxes from your employee expense reports and supplier invoices. The
withheld amount is paid to the taxation authorities.
Payables provides the following income tax forms and reports:
Use Withholding Tax: If you enable this option, you have the option to allow your
suppliers and supplier sites to be subject to withholding tax
1. Include Discount Amount: Payables includes the invoice discount amount when it
calculates withholding tax amounts for the invoice.
2. Include Tax Amount: Payables includes the invoice tax amount when it calculates
withholding tax amounts for the invoice
1. Never
2. At Invoice Validation Time: If Payables withholds tax at Invoice Validation, it
calculates withholding only once. If you adjust an invoice after you submit Invoice
Validation, then you need to manually adjust the withholding tax.
3. At Payment Time: When you create payments in a payment batch or with a Quick
payment.
4. At Invoice Validation and At Payment Time: Indicates when the Withholding Tax is
applied, that is at the time of both Invoice Validation and at the Payment.
1. Never: You can create a withholding type tax code without entering a tax authority.
However, if you change to an option other than Never, you will need to manually ensure
that each withholding type tax code has an associated tax authority.
2. At Invoice Validation Time
3. At Payment Time
Supplier Site:
Period Limit: It is used to limit the amount of tax withheld during a withholding tax
calendar period. After you paid the amount of WHT specified,system stops creating
WHT-Invoices. Payables will not withhold more than the specified amount for the
specified period(s).
Amount Ranges: It is used when your WHT rate depends on what you already have paid
during a time period. For the amount basis you can choose between Gross Amount and
Withheld Amount. The time period basis is either per withholding tax calendar period or
per invoice.
7. Navigate to Purchasing Super User->Supplier Base->Supplier and search for any supplier used
in invoice.Then under Tax Details section across supplier,select Allow Withholding Tax
option.
Also enable Allow Tax Withholding and enter the newly created Tax Group under Payment
Withholding Tax Group against the site.(Since we have set create Withholding Tax invoice at
payment time).
During Payment it has reduced 50 USD as discount and withheld 100 USD (10% of 1000->We
have enabled to include discount amount also for withholding tax amount calculation)
Amount Paid =1000-50(5%1000 as part of Terms Discount)-100(10% 1000, discount amount is
also eligible for withholding since Include Discount Amount is enabled)=850 USD
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Bank
1. Navigate to Payables Manager->Setup->Payment->Banks and Bank Branches.Click on Banks
tab and then click on Create button.
(Can also use Cash Management Responsibility->Setup>Banks>Banks navigation)
2. Select the country, enter Bank name & number and other Bank details.Then click on Save
and Next button.
3. Click on Create button under Address tab if you want to add address details.Then click on
Save and Next button.
4. Click on Create Contact button. Enter the details and click on Apply button.
Branch
1. Search the newly created bank from Payables Manager->Setup->Payment->Banks and Bank
Branches and then click Create Branch.
2. Click on continue button and enter the Branch name,Branch number and select Branch
type.Then click on Save and Next button.Branch Types are:
OTHERS
3. Click on Create button under Address tab if you want to add branch address details.Then
click on Save and Next button.
4. Click on Create Contact button. Enter the details and click on Apply button.
Account
1. Search the newly created Branch under Bank Branches tab and then click on Create
Account.
2. Click on continue button and enter the Bank Account Owner.Also select the Account Use .
Then click on Next button.
3. Enter the account Name and other account informations.Then click on Save and Next
button.
4. Enter the Account Control informations and click on Save and Next button.
Multiple Currency Payments: Enable this option if you want to use this bank account to
pay invoices entered in multiple currencies. You can select this option only if the Use
Multiple Currencies Payables option is enabled and of the bank account is in your
functional currency.
Allow Zero Payments: Enable this option to allow zero-amount payments from this
bank account.
Pooled Account: Enable this option if you use Automatic Offsets and you want to
associate multiple companies with this bank account. Oracle Payables creates one
corresponding cash accounting entry for each liability distribution. Oracle Payables
builds the cash account based on the cash account defined for the bank account, and on
the account segments of the liability lines.
Maximum Outlay: Enter the largest currency outlay that you allow for a payment batch
for this bank account. The system displays a warning if the payment batch exceeds this
amount. However, you can continue to process the payment batch. You can override this
default amount when initiating a payment batch.
Minimum Payment: Enter the lowest payment amount that you allow in a payment
batch. You can override this default amount when initiating a payment batch. Maximum
Payment. Enter the largest payment amount that you allow in a payment batch. You can
override this default amount when initiating a payment batch.
5. Click on Add Organization Access button and enter the Organization and select Account
Use options.Then click on Continue button.
5. Enter the Payables and GL options and click on Save and Next button.
6. Click on Create Contact button if you want to create contact.Then click on Finish button and
the Bank account will be created.
Payment Document
1. Select the Account and click on Manage Payment Documents button.
2. Click on Create button and enter the Document Name.Then select the Paper Stock Type and
Payment Format.Also enter First and Last(Last not mandatory) Document number.
Select Paper Stock Type as Blank Stock for Electronic Payment format and Prenumbered
Stock for Paper payment format.
Invoice Types
Posted: October 10, 2013 in Account Payables
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1.
Standard
An invoice from a supplier representing an amount due for goods or services purchased.
Standard invoices can be either matched to a purchase order or not matched and it should be a
positive amount invoice.
2.
Credit Memo
Credit Memos are memos from a supplier representing a credit amount toward goods or services.
Credit memos are always negative amounts.
That is, its a negative amount invoice created by a supplier and sent to you to notify you of a
credit.
3.
Debit Memo
An invoice you enter to record a credit for a supplier who does not send you a credit memo.
It is the negative amount invoice created by you and sent to a supplier to notify the supplier of a
credit you are recording.
4.
Mixed
Mixed Invoices are invoices or credit/debit memos for which you can match to purchase orders
and to other invoices. Mixed invoices can be either positive or negative values. However, you
can only match a negative amount mixed invoice to a standard invoice.
5.
Prepayment
6.
Expense Report
Withholding Tax
An invoice you enter to remit taxes withheld to the appropriate tax authority.
8.
Retainage Release
PO Price Adjustment Invoices are for recording the difference in price between the original
invoice and the new purchase order price. PO price adjustment invoices can be matched to both
purchase orders and invoices.
For example, if a supplier sends an invoice for a change in unit price for an invoice you have
matched to a purchase order, PO Price Adjustment Invoices can be used to adjust the invoiced
unit price of previously matched purchase order shipments or distributions without adjusting the
quantity billed.
Matching Options
Posted: April 25, 2013 in Account Payables
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2-way matching:
Purchase Order and Invoice quantities should match within your tolerances as follows:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
3-way matching:
Purchase Order, Receipt and Invoice quantities should match with the quantity tolerances
defined:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
Quantity billed <= Quantity received
4-way matching:
Purchase Order, Receipt, Accepted and Invoice quantities should match within the quantity
tolerances defined:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
Quantity billed <= Quantity received
Quantity billed <= Quantity accepted