EBizTax SG Practice US
-
Upload
srinivasa-rao-asuru -
Category
Documents
-
view
221 -
download
0
Transcript of EBizTax SG Practice US
-
7/25/2019 EBizTax SG Practice US
1/178
R12.x Oracle E-Business TaxFundamentals - StudentPractices - US
Student Guide
D60095GC10
Edition 1.0
February 2011
D71934
-
7/25/2019 EBizTax SG Practice US
2/178
Copyright 2011, Oracle. All rights reserved.Disclaimer
This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy andprint this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way.Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display,perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorizationof Oracle.
The information contained in this document is subject to change without notice. If you find any problems in the document, please
report them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is notwarranted to be error-free.
Restricted Rights Notice
If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the UnitedStates Government, the following notice is applicable:
U.S. GOVERNMENT RIGHTSThe U.S. Governments rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restrictedby the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract.
Trademark Notice
Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respectiveowners.
Author
Stacey Tucker-Blosch
Technical Contributors and Reviewers
Andrea Auld, Ramasubramanian Balasundaram, Rajesh Bhatt, Nigel Chapman, Kevan Davies,Julianna Dodick, Ivy Farren, Amit K. Jain, Mary Kalway, Robert MacIssac, Nirajita Mitra, AnandNaik, Pamela Rietz, Christine Rudd, Harsh Takle, Brijesh Thakkar, Amit Vohra, KathrynWohnoutka
This book was published using: oracletutor
-
7/25/2019 EBizTax SG Practice US
3/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US Table of Contents
i
Table of Contents
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US .......................................................1-1R12.x Oracle E-Business Tax Fundamentals - Student Practices - US ........................................................1-3
Practice - Review the Setup of the City Tax in the US-SALES-TAX-101 Regime.....................................1-4View the Tax Rules Associated with the US-SALES-TAX-101 Regime .....................................................1-8
View the Legal Entity Setup .......................................................................................................................1-10View the Setup of the US-SALES-TAX-101 Tax Regime...........................................................................1-11View the Tax Setup for the CITY Tax for the US-SALES-TAX-101 Tax Regime........................................1-12View the Setup for the STANDARD Tax Status for the CITY Tax for US-SALES-TAX-101 Tax Regime...1-13View the Setup of the CI-NY-NEW YORK-121661 Tax Jurisdiction...........................................................1-14View the Tax Rate for the STANDARD Tax Rate Code .............................................................................1-15Review .......................................................................................................................................................1-16Practice - Create a New User.....................................................................................................................1-17Practice - Create a Regime to Rate the Tax Model ...................................................................................1-20Practice Solution - Create a Regime to Rate Tax Model ...........................................................................1-21Create a Tax ..............................................................................................................................................1-23
Create a Tax Status ...................................................................................................................................1-25Create Tax Rates .......................................................................................................................................1-26Create a Tax Jurisdiction............................................................................................................................1-28Create Tax Accounts..................................................................................................................................1-29Define Defaults and Tax Rules for the Steps of the Tax Determination Process .......................................1-30Make Tax Available for Transactions .........................................................................................................1-32Test Your Tax Setup by Entering an Invoice in Payables ..........................................................................1-33Test Your Tax Setup by Entering an Invoice in Receivables......................................................................1-36Test Your Tax Setup by Entering a Purchase Order in Purchasing ...........................................................1-39Test Your Tax Setup by Entering a Sales Order in Order Management ....................................................1-41Practice - Create Determining Factor Sets................................................................................................1-43Practice Solution - Create Determining Factor Sets ...................................................................................1-44Create a Condition Set...............................................................................................................................1-45Modify the Tax Determination Steps to Use a Rule Using Your Condition Set...........................................1-46Test Your Tax Setup by Entering an Invoice in Payables ..........................................................................1-48Practice - Create Tax Zones .....................................................................................................................1-50Practice Solution - Create Tax Zones ........................................................................................................1-51
Add a New Rule to the Determine Tax Applicability Step to Make Tax Not Applicable for All Countries in YourTax Zone....................................................................................................................................................1-53Test Your Tax Setup by Entering an Invoice in Payables ..........................................................................1-55Practice - Create Customer Tax Exemptions ............................................................................................1-57Practice Solution - Create Customer Tax Exemptions ...............................................................................1-58Create a Customer Tax Exemption for a Specific Item ..............................................................................1-60Test Your Tax Setup by Entering an Invoice in Receivables......................................................................1-62
Practice - Create Product Exceptions .......................................................................................................1-65Practice Solution - Create Product Exceptions...........................................................................................1-66Test Your Tax Setup by Entering an Invoice in Receivables......................................................................1-67Test Your Tax Setup by Entering a Purchase Order in Purchasing ...........................................................1-70Practice - Create Product Fiscal Classifications........................................................................................1-72Practice Solution - Create Product Fiscal Classifications...........................................................................1-73Use Expert Rule Entry to Create a New Tax Rule to the Determine the Tax Applicability Step of the TaxDetermination Process...............................................................................................................................1-74
-
7/25/2019 EBizTax SG Practice US
4/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US Table of Contents
ii
Create an Inventory Item............................................................................................................................1-76Test Your Tax Setup by Entering a Purchase Order ..................................................................................1-77Practice - Create Tax Rate Rules..............................................................................................................1-79Practice Solution - Create Tax Rate Rules.................................................................................................1-80Create a Determining Factor Set................................................................................................................1-82Create a Condition Set...............................................................................................................................1-83Modify the Tax Determination Steps to Use a Rule Using Your Condition Set...........................................1-84Create an Inventory Item............................................................................................................................1-86Test Your Tax Setup by Entering a Purchase Order ..................................................................................1-88Practice - Create a Self-Assessed Tax Example.......................................................................................1-91Practice Solution - Create a Self-Assessed Tax Example.........................................................................1-92Verify That the Supplier Record Is Configured...........................................................................................1-94Test Your Tax Setup by Entering an Invoice in Payables ..........................................................................1-95Practice - Setting Up Offset Tax ................................................................................................................1-98Practice Solution - Setting Up Offset Tax...................................................................................................1-99Modify Your Tax Regime to Allow Tax Recovery .......................................................................................1-100Create an Offset Tax..................................................................................................................................1-101Create an Offset Tax Status.......................................................................................................................1-102
Create an Offset Recovery Rate and Associated Accounts .......................................................................1-103Create a Negative Offset Tax Rate ............................................................................................................1-104Make Offset Tax Available for Transactions and Specify the Recovery Rate Code ...................................1-106
Attach Offset Tax to Main Tax Rate Details ...............................................................................................1-107Create a Supplier with Offset Tax Enabled ................................................................................................1-108Test your Offset Tax by Entering an Invoice in Payables ...........................................................................1-110Practice - Run a Tax Register Report .......................................................................................................1-113Practice Solution - Run a Tax Register Report..........................................................................................1-114Practice - Run the Tax Audit Trail Report..................................................................................................1-115Practice Solution - Run the Tax Audit Trail Report .....................................................................................1-116Practice - Run a Tax Received Report ......................................................................................................1-117Practice Solution - Run a Tax Received Report ........................................................................................1-118Practice - Run the Tax Reconciliation Report............................................................................................1-119Practice Solution - Run the Tax Reconciliation Report...............................................................................1-120Practice - Create a Regime to Rate Model with Recoverable Tax (VAT) ..................................................1-121Practice Solution - Create a Regime to Rate Model with Recoverable Tax (VAT) ....................................1-122Create a Tax and Associated Tax Accounts ..............................................................................................1-124Create a Tax Status ...................................................................................................................................1-126Create a Tax Rate......................................................................................................................................1-127Create a Tax Jurisdiction............................................................................................................................1-129Create Recovery Rates and Associated Accounts.....................................................................................1-130Specify Defaults for the Steps of the Tax Determination Process ..............................................................1-131Make Tax Available for Transactions and Specify the Recovery Rate Code..............................................1-133
Test Your New Tax by Entering an Invoice in Payables.............................................................................1-134Enter an Invoice in Receivables.................................................................................................................1-136Practice - Using the Direct Tax Rate Determination ..................................................................................1-139Practice Solution - Direct Tax Rate Determination ....................................................................................1-140Create a Tax Regime .................................................................................................................................1-141Create a Tax ..............................................................................................................................................1-143Creating a Tax Status ................................................................................................................................1-145Create Tax Rate.........................................................................................................................................1-146
-
7/25/2019 EBizTax SG Practice US
5/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US Table of Contents
iii
Creating a Tax Jurisdiction.........................................................................................................................1-147Define Defaults and Tax Rules for the Steps of the Tax Determination Process .......................................1-148Making Tax Available for Transactions ......................................................................................................1-152Create a Supplier and Associate It with Your XXDTRTAXRATE Through the Tax Classification Code.....1-153Test Your Tax Setup by Entering an Invoice in Payables ..........................................................................1-155Practice - Processing a Transaction...........................................................................................................1-159Verify the Existing Tax Rate .......................................................................................................................1-161Create a Purchase Order on a Date with 10% Tax Rate............................................................................1-162Change the Tax Rate from 10 Percent to 11 Percent ................................................................................1-164Enter an Invoice with a Tax Rate of 11 Percent .........................................................................................1-165
-
7/25/2019 EBizTax SG Practice US
6/178
-
7/25/2019 EBizTax SG Practice US
7/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US Table of Contents
v
Preface
Profile
Before You Begin This Course
Basic knowledge of business accounting concepts.
Working experience with business tax requirements.
Thorough knowledge of Oracle Applications.
Prerequisites
Navigate Oracle Applications
R12.x Oracle E-Business Suite Essentials for Implementers
How This Course Is OrganizedThis is an instructor-led course featuring lecture and hands-on exercises. Online demonstrationsand written practice sessions reinforce the concepts and skills introduced.
-
7/25/2019 EBizTax SG Practice US
8/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US Table of Contents
vi
Related Publications
Oracle Publications
Title Part Number
Oracle E-Business Tax Implementation Guide E13629-03
Oracle E-Business Tax User Guide E13631-03
Oracle E-Business Tax Reporting Guide E13630-03
Oracle Inventory Users Guide E13450-04
Oracle Financials for Europe Users Guide E13421-04
Oracle Financials for the Americas User Guide E13422-03
Oracle Financials for Asia/Pacific User Guide E13419-03
Additional Publications
System release bulletins
Installation and users guides
Read-me files
International Oracle Users Group (IOUG) articles
Oracle Magazine
-
7/25/2019 EBizTax SG Practice US
9/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US Table of Contents
vii
Typographic Conventions
Typographic Conventions in Text
Convention Element Example
Bold italic Glossary term (if
there is a glossary)
The algorithminserts the new key.
Caps andlowercase
Buttons,check boxes,
triggers,
windows
Click the Executable button.Select the Cant Delete Card check box.
Assign a When-Validate-Item trigger to the ORD block.
Open the Master Schedule window.
Courier new,
case sensitive
(default is
lowercase)
Code output,
directory names,
filenames,
passwords,
pathnames,
URLs,
user input,
usernames
Code output: debug.set (I, 300);
Directory: bin(DOS), $FMHOME(UNIX)
Filename: Locate the init.orafile.
Password: User tigeras your password.
Pathname: Open c:\my_docs\projects
URL: Go to http://www.oracle.com
User input: Enter 300Username: Log on as scott
Initial cap Graphics labels
(unless the term is a
proper noun)
Customer address (butOracle Payables)
Italic Emphasized words
and phrases,
titles of books and
courses,
variables
Do notsave changes to the database.
For further information, see Oracle7 Server SQL Language
Reference Manual.
[email protected], where user_idis the
name of the user.
Quotation
marks
Interface elements
with long names
that have onlyinitial caps;
lesson and chapter
titles in cross-
references
Select Include a reusable module component and click Finish.
This subject is covered in Unit II, Lesson 3, Working withObjects.
Uppercase SQL column
names, commands,
functions, schemas,
table names
Use the SELECT command to view information stored in the
LAST_NAME
column of the EMP table.
Arrow Menu paths Select File> Save.Brackets Key names Press [Enter].
Commas Key sequences Press and release keys one at a time:
[Alternate], [F], [D]Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]
Typographic Conventions in Code
Convention Element Example
-
7/25/2019 EBizTax SG Practice US
10/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US Table of Contents
viii
Caps and
lowercase
Oracle Forms
triggers
When-Validate-Item
Lowercase Column names,
table names
SELECT last_nameFROM s_emp;
Passwords DROP USER scottIDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER(OG_GET_LAYER (prod_pie_layer))
Lowercase
italic
Syntax variables CREATE ROLE role
Uppercase SQL commands and
functions
SELECT useridFROM emp;
Typographic Conventions in Oracle Application Navigation Paths
This course uses simplified navigation paths, such as the following example, to direct youthrough Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
This simplified path translates to the following:
1. (N) From the Navigator window, select Invoicethen Entrythen Invoice BatchesSummary.
2. (M) From the menu, select Querythen Find.
3. (B) Click the Approvebutton.
Notations:
(N) = Navigator
(M) = Menu
(T) = Tab
(B) = Button
(I) = Icon
(H) = Hyperlink
(ST) = Sub Tab
Typographical Conventions in Oracle Application Help System Paths
This course uses a navigation path convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.
The following help navigation path, for example
(Help) General Ledger > Journals > Enter Journals
represents the following sequence of actions:
1. In the navigation frame of the help system window, expand the General Ledger entry.
2. Under the General Ledger entry, expand Journals.
-
7/25/2019 EBizTax SG Practice US
11/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US Table of Contents
ix
3. Under Journals, select Enter Journals.
4. Review the Enter Journals topic that appears in the document frame of the help systemwindow.
-
7/25/2019 EBizTax SG Practice US
12/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US Table of Contents
x
-
7/25/2019 EBizTax SG Practice US
13/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 1
R12.x Oracle E-Business TaxFundamentals - StudentPractices - US
Chapter 1
-
7/25/2019 EBizTax SG Practice US
14/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 2
-
7/25/2019 EBizTax SG Practice US
15/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 3
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
-
7/25/2019 EBizTax SG Practice US
16/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 4
Practice - Review the Setup of the City Tax in the US-SALES-TAX-101Regime
Overview
Complete the steps in the solution.
-
7/25/2019 EBizTax SG Practice US
17/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 5
Practice - Review the Setup of the City Tax in the US-SALES-TAX-101Regime
Create a Payables Invoice Transaction in the Tax Simulator
1. Using the URL supplied by the instructor, log into the applications with the
username/password sscnewall/welcome.
2. Select the Oracle Tax Simulatorresponsibility.
3. Navigate to the Tax Simulatorfunction.
4. Enter the following in the Transaction Lines form (T) Main:
Field Value
Application: Payables
Document Event: STANDARD INVOICES
Legal Entity: SSC US 01
Document Type: STANDARD CREATED
Operating Unit: SSC US 01
Document Date: 01-SEP-2007
Document Number: XXDEMO001 (replace XX with your studentnumber)
Document Currency: USD
Do Not Save Yet!
5. Enter the following in the Transaction Lines form (T) Party:
Field Value
Ship From Party: Advantage Corp
Bill From Party: Advantage Corp
Ship To Party: SSC US 01 - 002 SSC US OU 01 - 002
Bill To Party: SSC US 01 - 002 SSC US OU 01 - 002
Do Not Save Yet!
-
7/25/2019 EBizTax SG Practice US
18/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 6
6. Enter the following in the Transaction Lines form (T) Sites:
Field Value
Ship From Party Site: US CHECK Advantage Corp
Bill From Site: US CHECK Advantage Corp
Ship From Location: 8475 Elk Grove Road New York , NY
Bill From Location: PO Box 680978 New York , NY
Ship To Location: SSC US OU 01 - 002 31 Madison Avenue NewYork New York, NY
Bill To Location: SSC US OU 01 - 002 31 Madison Avenue NewYork New York, NY
Do Not Save Yet!
7. Enter the following in the Transaction Lines form Linesregion (T) Main:
Field Value
Num: 1 (defaults)
Line Description GOODS
Quantity: 1
UOM: Each
Unit Price: 100.00
Transaction BusinessCategory:
Purchase Transaction
Account: 001.100.63580.0000.000.000.000
GL Date: 01-SEP-2007
Tax Inclusive: None
Line Level Event CREATE_WITH_TAX
8. Save your work.
Note: The tax engine is calculating the taxes.
9. Click (B) Tax Lines.
Note: It will take a few moments for the tax lines window to open.
-
7/25/2019 EBizTax SG Practice US
19/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 7
10. Verify that the following three tax lines were generated:
Tax Regime Tax Jurisdiction Tax Status Rate Name RateTax
Amount
US-SALES-TAX-101
STATE ST-330000000 STANDARD STANDARD 4.250 4.25
US-SALES-TAX-101
COUNTY CO-NY-NEWYORK-121660
STANDARD STANDARD .000 .00
US-SALES-TAX-101
CITY CI-NY-NEWYORK-121661
STANDARD STANDARD 4.250 4.25
Note: Dependent on the setups in the Vision demonstration environment, additional taxesmay be calculated on the transaction.
11. Place your cursor on the first line (CITY Sales Tax) and click (B) Tax Rules.
12. Verify that tax rules were applied as shown in the following table:
ResultType
ProcessName
Tax RuleName
RulePriority
Determining FactorTemplate
Name
Condition
GroupName
Result
Default DeterminePlace ofSupply
SHIP_TO
RuleBased
DetermineTaxApplicability
US CITYTAX 101SHIP FROM/ SHIP TOUS
10 US SALESCITY TAX 2
US SALESCITY TAX2
Default
Default DetermineTaxRegistration
Default
Default DetermineTaxableBasis
STANDARD_TB
Default CalculateTax Amounts
STANDARD_TC
13. Close the Rules form.
14. Click (B) Cancelin the Detail Tax Lines form.
15. Close the Transaction Lines form.16. Switch responsibilities to Tax Managers SSC US 01.
-
7/25/2019 EBizTax SG Practice US
20/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 8
View the Tax Rules Associated with the US-SALES-TAX-101 Regime
To identify the results of the city tax, the following are the steps to view the tax rules associatedwith the steps of the Tax Determination process.
1. Using the Tax Managers, SSC US 01responsibility, navigate to Tax Rules.
(N)Tax ConfigurationTax Rules
2. Enter the following in the Tax Rules Search region:
Field Value
Configuration Owner: Global Configuration Owner
Tax Regime Code: US-SALES-TAX-101
Tax: CITY
3. Click (B) Go.
Note: You should see the following table of steps/rule types which are being applied todetermine if the CITY tax in the US-SALES-TAX-101 regime is applicable to a transaction.
Rule Type Default Explanation
Direct TaxRateDetermination
Direct Tax Rate Determination rules are utilized for datamigrated from 11i where tax classification codes are used.There are no Direct Tax Rate Determination rules for theUS-SALES-TAX-101 tax regime.
DeterminePlace ofSupply
Ship to, usebill to if shipto is notfound
This step is executed to determine the location atransaction is considered to have taken place for aspecific tax. For our transaction, the Ship To Location wasMadison Avenue, New York, New York.
DetermineTaxApplicability
NotApplicable
This step determines the taxes that apply to a giventransaction. In our case, this step utilizes two rules, whichyou can view by clicking the + sign to expand the rule
type.The first rule, with precedence 10, is US CITY TAX 101-BILL/SHIP US. If you click this link, you can see that thisrule has a condition associated with it, indicating that if theShip From and Ship To countries are both the UnitedStates, the rule will return a result of Applicable.
Since the conditions of the first rule were met by ourtransaction (the Ship From and Ship To locations wereboth in the United States), the second rule, withprecedence 20, is never even evaluated. Also, thesecond rule is not enabled.
DetermineTaxRegistration
The Determine Tax Registration step determines the taxregistration of the party responsible for payment of thetaxes.
DetermineTax Status
STANDARD This step determines the tax status of each applicable taxon the transaction. In this case, the step has a defaultresult of STANDARD (indicating the STANDARD taxstatus), and no rules, indicating that the STANDARD taxstatus for the US-SALES-TAX-101 regime and CITY tax
-
7/25/2019 EBizTax SG Practice US
21/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 9
Rule Type Default Explanation
will be used.
DetermineTax Rate
STANDARD This step determines the tax status of each applicable taxon the transaction. In this case, the step has a defaultresult of STANDARD (indicating the STANDARD taxstatus), and no rules, indicating that the STANDARD tax
status for the US-SALES-TAX-101 regime and CITY taxwill be used.
DetermineTaxableBasis
STANDARD_TB
This step determines the amount on which to apply thetax rate. In this instance, the step has a default result ofSTANDARD_TB. This is seeded data indicating that thedefault tax basis is the standard default tax basis.
CalculateTaxAmounts
STANDARD_TC
This step has a default result of STANDARD_TC, aseeded value indicating a standard tax calculation, whichwould be a taxable amount * percentage.
DetermineRecoveryRate
This step is not relevant because the CITY tax in the US-SALES-TAX-101 tax regime is not a recoverable tax.
-
7/25/2019 EBizTax SG Practice US
22/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 10
View the Legal Entity Setup
Overview
The following steps will walk you through the setup of the legal entities for our company in orderto determine what taxes would be applicable for those legal entities.
Tasks1. Using the Tax Managers, SSC US 01responsibility, navigate to (T) Parties(ST) Party
Tax Profiles.
2. In the Party Tax Profiles Search page, enter the following:
Field Value
Party Type: First Party Legal Entity (defaults)
Party Name: SSC US 01
3. Click (B) Go.
4. Click (I) Update Tax Profilefor the First Party Legal Entity Party Type.
5. In the Update Party Tax Profile page, select the (T) Configuration Options.Note: The US-SALES-TAX-101 tax regime has been identified as being part of the taxconfiguration for this legal entity, meaning that any rules associated with that tax regime willbe evaluated whenever an AP invoice is entered with SSC US 01 as the legal entity (in thecase of our invoice, the Ship To, as referenced in the Determine Place of Supply stepdefault value).
6. Click (B) Cancelto return to the Party Tax Profiles page.
-
7/25/2019 EBizTax SG Practice US
23/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 11
View the Setup of the US-SALES-TAX-101 Tax Regime
In Oracle E-Business Tax, a Tax Regime is the system of regulation for the determination andadministration of one or more taxes.
1. Using the Tax Managers, SSC US 01 responsibility, navigate to (T) Tax Configuration(ST) Tax Regimes.
2. Enter the following in the Tax Regimes Search page:
Field Value
Regime Level: Country (defaults)
Country Name: United States
Tax Regime Code: US-SALES-TAX-101
3. Click (B) Go.
4. Click (I) Updatefor the US-SALES-TAX-101 regime.
Main Details Page Note: The tax regime name is US-SALES-TAX-STATE-COUNTY-CITY. The tax regime code and tax regime name are just two separate identifiers for thesame object.
5. Click the + sign to expand the Show Controls and Defaults region.
Controls and Defaults region Note that Allow Tax Recovery is deselected and that AllowTax Exceptions and Allow Tax Exemptions are selected.
6. Click (B) Continuein the Main Details page.
Configuration Options Page Note: SSC US 01: First Party Legal Entity and VisionOperations Operating Unit owning Tax Content have both been identified as parties subjectto taxes associated with the US-SALES-TAX-101 tax regime.
7. Click (B) Finishin the Configuration Options page.
-
7/25/2019 EBizTax SG Practice US
24/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 12
View the Tax Setup for the CITY Tax for the US-SALES-TAX-101 TaxRegime
A Tax is a distinct charge imposed by a government through a fiscal or tax authority. Every taxin Oracle E-Business Tax is defined under a tax regime.
1. Using the Tax Managers, SSC US 01 responsibility, navigate to (T) Tax Configuration(ST) Taxes.
2. Enter the following in the Taxes Search page:
Field Value
Regime Level: Country (defaults)
Country Name: United States
Tax Regime Code: US-SALES-TAX-101
Tax: CITY
3. Click (B) Go.
Note: Tax value is CITY and the Name value is CITY, two different names for the same
object.4. Click (I) Updateon the CITY tax row.
Main Information page Note: The Tax is Available for Transactions and the Tax Type isset to Location.
5. In the Main Information page, click (B) Tax Accounts.
6. In the Update Tax Accounts page, click (I) Update Tax Accountsfor the SSC USLedger/SSC US 01 Operating Unit.
Update the Tax Accounts page Note: There can be default accounts defined to capturetax expense (for AP invoices) and tax liability (for AR invoices) for this particular CITY tax.These may not be set up in the demo environment; however this is where it would be setup.
7. In the Update Tax Accounts page, click (B) Cancelto return to the Tax Accounts page.8. In the Tax Accounts page, click (B) Cancelto return to the Update Tax page.
9. In the Update Tax page, click (B) Cancelto return to the Taxes Search page.
-
7/25/2019 EBizTax SG Practice US
25/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 13
View the Setup for the STANDARD Tax Status for the CITY Tax for US-SALES-TAX-101 Tax Regime
1. Using the Tax Managers, SSC US 01 responsibility, navigate to (T) Tax Configuration(ST) Tax Statuses.
2. Enter the following in the Taxes Statuses Search page:
Field ValueRegime Level: Country (defaults)
Country Name: United States
Tax Regime Code: US-SALES-TAX-101
Tax Status Code: STANDARD
Tax: CITY
3. Click (B) Go.
4. Select the STANDARDstatus:
Update Tax Status page Note: The Set as Default Tax Status check box is checked.
This setting causes the STANDARD tax status to default as the result for the DetermineTax Status step in the tax rules for this tax regime and tax.
Default Controls region Verify that the Allow Tax Exceptions and Allow Tax Exemptionsfields are both selected.
5. Select the link to return to Tax Statuses.
6. View the Tax Rate for the STANDARD Tax Rate Code
-
7/25/2019 EBizTax SG Practice US
26/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 14
View the Setup of the CI-NY-NEW YORK-121661 Tax Jurisdiction
1. Using the Tax Managers, SSC US 01responsibility, navigate to (T) Tax Configuration(ST) Tax Jurisdictions.
2. Enter the following in the Tax Jurisdictions Search page:
Field Value
Tax Jurisdiction Code: CI-NY-NEW YORK-121661
3. Click (B) Go.
4. Click (I) Update.
Update the Tax Jurisdiction page Note: The jurisdiction is effective from 01-Jan-1952 until31-Dec-4712. Remember, the Tax Jurisdiction Code and Tax Jurisdiction Name are twonames for the same thing, and in our demo environment we used the same value in bothplaces.
5. In the Update Tax Jurisdiction page, click (B) Cancelto return to the Tax JurisdictionsSearch page.
-
7/25/2019 EBizTax SG Practice US
27/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 15
View the Tax Rate for the STANDARD Tax Rate Code
1. Using the Tax Managers, SSC US 01 responsibility, navigate to (T) Tax Configuration(ST) Tax Rates.
2. Enter the following in the Tax Rates Search page:
Field Value
Regime Level: Country
Country Name: United States
Tax Regime Code: US-SALES-TAX-101
Tax Rate Code: STANDARD
Tax: CITY
Tax Jurisdiction: CI-NY-NEW YORK-121661
3. Click (B) Go.
4. Select the STANDARDrate link
Update Tax Rate page Note: Tax Rate is 4.25 percent, effective from 01-Nov-1992 to 31-Dec-2199.
5. (I)View Rate Details.
Update the Tax Rate Details page Note: The 4.25 tax rate is set as the default rate,effective from 01-Nov-1992 to 31-Dec-2199. Also, Tax Exemptions and Tax Exceptions areboth allowed.
6. Select the Tax Configuration: Tax Rates link to return to the Tax Rates page.
7. In the Update Tax Rate page, click (B) Cancelto return to the Tax Rates search page.
8. Log out of the applications as sscnewall.
-
7/25/2019 EBizTax SG Practice US
28/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 16
Review
Your AP transaction was created in the SSC US 01 legal entity. Its tax configurationspecifies that taxes in the US-SALES-TAX-101 regime are applicable.
The tax rules evaluate which of the taxes in that regime are applicable.
CITY tax is applicable only if the Ship To and Ship From are in the United States.
The tax rules specify that the STANDARD tax status is the default.
The tax rules specify that the STANDARD tax rate is the one to use.
The definition of the STANDARD tax rate for the STANDARD tax status for the CITY taxfor the US-SALES-TAX-101 tax regime specifies the tax rate is 4.25% for the 01-Nov-1992 to 31-Dec-2199 time frame.
-
7/25/2019 EBizTax SG Practice US
29/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 17
Practice - Create a New User
Overview
Complete the steps in the solution.
-
7/25/2019 EBizTax SG Practice US
30/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 18
Practice - Create a New User
Tasks
Sign on
Field Value
User Name OPERATIONS
Password welcome
Responsibility System Administrator
Add a User
1. Navigate to the Define User window.
(N) Security : User > Define
2. Enter your user information:
Field ValueUser Name: XXTAXUSER
Password: Welcome (must type this twice)
Description XXTAXUSER
Password Expiration None
Person Stock, Ms. Pat
-
7/25/2019 EBizTax SG Practice US
31/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 19
Add Responsibilities
3. Add the following responsibilities to your new username:
Responsibility Security Group
Tax Managers SSC US 01 Standard
Oracle Tax Simulator Standard
Legal Entity Manager Standard
Payables, SSC US OU 01 Standard
Receivables, SSC US OU 01 Standard
Purchasing, SSC US OU 01 Standard
Order Management, SSC US OU 01 Standard
Tax Managers Vision UK Standard
Payables Vision UK Standard
Receivables Vision UK Standard
System Administrator Standard
General Ledger, SSC US Standard
General Ledger, Vision UK Standard
(I) Save
Close Form.
Log in as New User
4. Exit Oracle Applications.
(L) Logout
5. Log back into the system with your newly created User ID and password.
-
7/25/2019 EBizTax SG Practice US
32/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 20
Practice - Create a Regime to Rate the Tax Model
Overview
Complete the steps in the solution.
-
7/25/2019 EBizTax SG Practice US
33/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 21
Practice Solution - Create a Regime to Rate Tax Model
Create a Tax Regime
1. Log into applications. Select the Tax Managers SSC US 01responsibility.
2. Navigate to the Create Tax Regime: Main Details page:
(N) Tax ConfigurationTax Regimes
Click (B) Create.
3. Enter a new tax regime based on the following information:
Field Value
Tax Regime Code XXUSSALESTAXREGIME
Name XX US Sales Tax Regime
Regime Level Country
Country Name United States
Parent Regime Code BlankEffective From 01-JAN-1950
Effective To Leave Blank
Used to group Regimes Deselected
4. Expand the Controls and Defaults region:
(H) Show Controls and Defaults
5. Enter Tax Regime Controls:
Field Value
Allow Tax Recovery Deselected
Allow Override and Entry ofInclusive Tax Lines
Deselected
Allow Tax Exemptions Selected
Allow Tax Exceptions Selected
-
7/25/2019 EBizTax SG Practice US
34/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 22
6. Enter Tax Regime Defaults:
Field Value
Tax Currency USD
Minimum Accountable Unit 0.01
Rounding Rule Nearest
Tax Precision 2 (default)
7. Navigate to Create Tax Regime: Configuration Options page:
Click (B) Continue.
8. Enter tax regime configuration options:
Field Value
Party Name SSC US 01
Note: Select the FirstParty Legal Entity partytype.
Configuration for Taxes and Rules Common Configuration
Effective From 01-JAN-1950
Effective To Leave blank
Note: Configuration options are discussed in the Configuration Owners and ServiceProviders module.
9. Click (B) Finishto complete the Tax Regime Setup.
10. Verify that you receive the following confirmation, The tax regime was successfullycreated.
-
7/25/2019 EBizTax SG Practice US
35/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 23
Create a Tax
1. Navigate to the Create Tax page:
(T) Tax Configuration(ST) Tax Regimes
Search for the Tax Regime you created in the preceding step.
Field Value
Country Name United States
Tax Regime Code XXUSSALESTAXREGIME
Click (B) Go.
Click (I) Regime to Rate Flow.
Click (I) Create Taxon the Regime Level Type row.
2. Create a new tax based on the following information:
Field Value
Tax Regime Code XXUSSALESTAXREGIME(default)
Configuration Owner Global ConfigurationOwner
Tax Source Create a new tax (default)
Tax XXUSSALESTAX
Tax Name XX US Sales Tax
Tax Type SALES
Effective From 01-JAN-1950 (default)
Effective To Leave blank
Geography Type STATE
Parent Geography Type COUNTRY
Parent Geography Name United States
Tax Currency USD (default)
Minimum Accountable Unit 0.01 (default)
Rounding Rule Nearest (default)
Tax Precision 2 (default)
Exchange Rate Type Blank
-
7/25/2019 EBizTax SG Practice US
36/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 24
3. Navigate to the Controls and Defaults region:
Click (H) Show Controls and Defaults
4. Enter Tax Controls:
Field Value
Allow Override and Entry of
Inclusive Tax Lines
Deselected
Allow Tax Rounding Override Deselected
Allow Override for Calculated TaxLines
Selected
Allow Entry of Manual Tax Lines Selected
Use Legal Registration Number Deselected
Allow Duplicate Tax RegistrationNumbers
Deselected
Allow Multiple Jurisdictions Deselected
Tax Accounts Creation Method Create Tax Accounts(default)
Allow Tax Exceptions Selected (default)
Allow Tax Exemptions Selected (default)
Tax Exemptions Creation Method Create Tax Exemptions(default)
Allow Tax Rate Rules Selected
Note: The Allow Tax Exceptions and Allow Tax Exemptions fields defaulted to Yes from thesetup of the Tax Regime in which you are creating your Tax.
Click (B) Apply.(The system returns you to the Regime to Rate Flow page.) Verify that you receive the following confirmation, The Tax has been successfully
created.
-
7/25/2019 EBizTax SG Practice US
37/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 25
Create a Tax Status
1. Navigate to the Create Tax Status page (from the Regime to Rate Flow page):
Click (H) Expand All.
Click (I) Create Tax Status(on Tax Level Type row).
2. Create a new tax status based on the following information:
Field ValueTax Regime Code XXUSSALESTAXREGIME
(default)
Configuration Owner Global ConfigurationOwner (default)
Tax XXUSSALESTAX (default)
Tax Status Code XXUSSALESSTDSTATUS
Name XX US Sales TaxStandard Status
Effective From 01-JAN-1950 (default)
Effective To Leave blank
Set as Default Tax Status Selected
Default Status Effective From 01-JAN-1950
Default Status Effective To Leave Blank
Allow Tax Exceptions Selected (default)
Allow Tax Exemptions Selected (default)
Note: The Allow Tax Exceptions and Allow Tax Exemptions fields defaulted to Yes from thesetup of the Tax for which you are creating a Tax Status.
3. Apply the tax status setup:
Click (B) Applyto return to the Regime to Rate Flow page.
Verify that you receive the following confirmation, The tax status was successfullycreated.
-
7/25/2019 EBizTax SG Practice US
38/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 26
Create Tax Rates
1. Navigate to the Create Tax Rate page (from the Regime to Rate Flow page):
Click (H) Expand All.
Click (I) Create Tax Rate(on Status Level Type row).
2. Create a new tax rate based on the following information:
Field ValueTax Regime Code XXUSSALESTAXREGIM
E (default)
Configuration Owner Global ConfigurationOwner (default)
Tax XXUSSALESTAX(default)
Tax Status Code XXUSSALESSTDSTATUS (default)
Tax Jurisdiction Code Blank
Tax Rate Code XXUSSALESTAXRATE
Rate Type Percentage (default)
Percentage Rate 10
Effective From 01-JAN-1950 (default)
Effective From Leave blank
3. Navigate to the Rate Details page:
Click (I) Rate Details.
4. Enter tax rate details:
Field Value
Tax Rate Name XX US Sales Tax Rate
Tax Rate Description XX US Sales Tax Rate
Internet Expenses Enabled Selected
Set as Default Rate Selected
Default Effective From 01-JAN-1950
Default Effective To Leave blank
Allow Tax Exemptions Selected (default)
Allow Tax Exceptions Selected (default)
Note: The Allow Tax Exceptions and Allow Tax Exemptions fields defaulted to Yes from thesetup of the Tax Regime and Tax for which you are creating a Tax Rate.
5. Select (B)Apply to return to the Create Tax Rate page.
6. Select (I) Tax Accounts.
7. Enter the Ledger:
Field Value: Ledger SSC US
-
7/25/2019 EBizTax SG Practice US
39/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 27
Select (B) Create.
8. Enter tax accounts based on the following information:
Field Value Operating Unit SSC US 01
Tax Expense 001.100.63920.0000.730.000.000
Tax Recoverable/Liability 001.100.25300.0000.730.000.000
Select (B) Apply to return to the Tax Rates Accounts page.
9. Select (B) Apply to return to the Create Tax rate page
Select (B) Apply to return to the Regime to Rate Flow Page
11. Verify that you received the following confirmation :"The Tax Rate has been successfullycreated."
-
7/25/2019 EBizTax SG Practice US
40/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 28
Create a Tax Jurisdiction
1. Navigate to the Create Tax Jurisdiction page:
(T) Tax Configuration(ST) Tax Jurisdictions.
Click (B) Create.
2. Create a new tax jurisdiction based on the following information:
Field ValueTax Jurisdiction Code XXTAXJURISDICTION
Tax Jurisdiction Name XX Tax Jurisdiction
Tax Regime Code XXUSSALESTAXREGIME
Tax XXUSSALESTAX
Geography Type STATE (pick from list!)
Parent Geography Type COUNTRY (default)
Parent Geography Name United States (default)
Effective From 01-JAN-1950
Effective To Leave Blank
Geography Name NY
Precedence Level 300 (default)
Collecting Tax Authority Blank
Reporting Tax Authority Blank
Set as default Tax Jurisdiction Yes
Default Effective From 01-JAN-1950
Default Effective To Leave blank
3. Apply the tax status setup:
Click (B) Applyto return to the Tax Jurisdictions page.
4. Verify that you receive the following confirmation, The tax jurisdiction was successfullycreated.
-
7/25/2019 EBizTax SG Practice US
41/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 29
Create Tax Accounts
1. Navigate to the Tax Accounts page from the Taxes page:
(T) Tax Configuration(ST) Taxes
2. Search for the Tax you created in the Practice: Create a Regime to Rate the Tax Model.
Field Value
Country Name United States
Tax Regime Code XXUSSALESTAXREGIME
Tax XXUSSALESTAX
Click (B) Go.
Click (I) Updateon the Tax row.
3. Navigate to the Tax Accounts page:
Click (B) Tax Accounts.
4. Enter the Ledger:
Field Value
Ledger SSC US
Click (B) Create.
5. Enter tax accounts based on the following information:
Field Value
Operating Unit SSC US 01
Tax Expense 001.100.63920.0000.730.000.000
Tax Recoverable/Liability 001.100.25300.0000.730.000.000
Click (B) Applyto return to the Tax Accounts page.
Click (B) Applyto return to the Update Tax page. Click (B) Applyto return to the Taxes page.
6. Verify that you receive the following confirmation, The tax was successfully updated.
-
7/25/2019 EBizTax SG Practice US
42/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 30
Define Defaults and Tax Rules for the Steps of the Tax DeterminationProcess
1. Navigate to the Tax Rules page:
(T) Tax Configuration(ST) Tax Rules
2. Access the rule types for your tax regime and tax created in the Practice: Create a Regimeto Rate the Tax Model.
Field Value
Configuration Owner Global ConfigurationOwner
Tax Regime Code XXUSSALESTAXREGIME
Tax XXUSSALESTAX
Click (B) Go.
Click (H) Expand All.(The system displays the nine steps/rule types of the taxdetermination process.)
Determine Place of Supply (I) Set Default
Field Value
Rule Type Default Ship To (pick from list!)
Click (B) Apply.
Determine Tax Applicability (I) Set Default
Field Value
Rule Type Default Applicable (pick from list!)
Click (B) Apply.
Determine Tax Registration (I) Set Default
Field Value
Rule Type Default Bill From Party (pick fromlist!)
Click (B) Apply.
Determine Tax Status
Field Value
Rule Type Default XXUSSALESTDSTATUS(default)
Note: You do not have to define a default value for tax status because when you created
your XXUSSALESSTD tax status, you specified that it was to be used as the default valuefor tax status in any tax rules.
Determine Tax Rate
Field Value
Rule Type Default XXUSSALESTAXRATE
-
7/25/2019 EBizTax SG Practice US
43/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 31
Note: You do not have to define a default value for tax rate because when you created yourXXUSSALESTAXRATE tax rate, you specified that it was to be used as the default valuefor tax rate in any tax rules.
Determine Taxable Basis (I) Set Default
Field Value
Rule Type Default STANDARD_TB (pick
from list)
Click (B) Apply.
Note: STANDARD_TB is a seeded value that indicates the standard taxable basis.
Calculate Tax Amounts (I) Set Default
Field US Sales and Use Tax
Rule Type Default STANDARD_TC (pickfrom list
Click (B) Apply.
Note: STANDARD_TC is a seeded value that indicates the standard tax calculation, which
is taxable basis * tax rate.Note: You do not have to enter defaults for Direct Tax Determination or for Tax RecoveryRate because they are not relevant for your Tax Regime and Tax. You did not allowrecovery for your XXUSSALESTAX tax.
-
7/25/2019 EBizTax SG Practice US
44/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 32
Make Tax Available for Transactions
1. Navigate to the Taxes page:
(T) Tax Configuration(ST) Taxes
2. Search for the Tax you created in the Practice: Create a Regime to Rate the Tax Model.
Field US Sales and Use Tax
Country Name United States
Tax Regime Code XXUSSALESTAXREGIME
Tax XXUSSALESTAX
Click (B) Go.
Click (I) Updateon the XXUSSALESTAX row.
3. Make the tax available for transactions:
Field US Sales and Use Tax
Make Tax Available forTransactions
Selected
Click (B) Apply(Displays the warning Warning: This tax does not have an exchangerate type. Are you sure you want to enable this tax?)
Click (B) Yes.
4. Verify that you receive the following confirmation, The tax was successfully updated.
5. Click (H) Close Windowto return to the Navigator.
-
7/25/2019 EBizTax SG Practice US
45/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 33
Test Your Tax Setup by Entering an Invoice in Payables
Note: In order to be able to run the Create Accounting Process in Payables for your invoice, theaccounting period must be open in Accounts Payable and in General Ledger.
To open the accounting Period in Accounts Payable, use the Payables, SSC US OU 01responsibility to navigate to Setup Calendar Accounting Accounting Periods. Query forthe current period and change its status to Open.
To open the accounting period in General Ledger, use the General Ledger, SSC USresponsibility to navigate to Setup Open/Close and click (B) Find in the Find window. Click(B) Open Period and enter the current period as the target period and click (B) OK. You will beasked if you are sure. Click (B) OK. This opens all periods in General Ledger between the lastpreviously opened period and the target period.
Tasks
1. Using the Payables, SSC US OU 01responsibility, navigate to the Invoices form.
(N) Invoices EntryInvoices
2. Enter a standard invoice based on the following header information:
Field Value
Operating Unit SSC US 01 (default)
Type Standard (default)
Trading Partner Advantage Corp.
Supplier Site US CHECK
Invoice Date Instructor Assigned.
Invoice Number XXAPTAXTEST001
Currency USD (default)
Invoice Amount 1155.00
GL Date (default)
Payment Method Electronic
3. Accept all other defaults.
Note: Do Not Save!!
4. Navigate to the Lines region.
(ST) 2 Lines.
-
7/25/2019 EBizTax SG Practice US
46/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 34
5. Enter invoice line information based on the following:
Field Value
Line 1 (default)
Type Item (default)
Amount 1000.00
Distribution Account 001.100.63580.0000.730.000.000
Description XX TEST 001
GL Date (default)
Business Category Purchase Transaction
Product Type GOODS
Ship To SSC US OU 01 002 (default)
6. Save your invoice.
Click (I) Save.
7. Calculate the Tax.
Click (B) Calculate Tax.
Note: You may see other Tax Regimes tax as well as your own. In order to validate yourinvoice, you must adjust the invoice total to be equal to the sum of the distributions,including your line for 1000.00 and the total of all taxes that are applied.
8. Verify that the tax calculation process applied your XXUSSALESTAX tax for 100.00 (10percent of the 1000.00 line amount).
9. With your cursor on the line for your XXUSSALESTAXREGIME, navigate to the Tax Detailswindow.
Click (B) Tax Details.
10. Verify that you see the following information for your tax in the Tax Details window:
Field Value
Tax Regime Code: XXUSSALESTAXREGIME
Tax: XXUSSALESTAX
Jurisdiction: XXTAXJURISDICTION
Tax Status: XXUSSALESTDSTATUS
Rate Name: XXUSSALESTAXRATE
Rate: 10.000
Tax Amount: 100.00
11. Close the Tax Details window.
Click (B) Cancel.
12. Click (T) 1 Generalin the bottom of the Invoice workbench screen, and then navigate to theActions screen.
Click (B) Actions 1.
-
7/25/2019 EBizTax SG Practice US
47/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 35
13. Validate your invoice:
Check the Validatecheck box.
Click (B) OK.
Note: If your invoice does not validate because the distributions are not equal to the invoiceamount, adjust the invoice amount to match and re-run the validation process.
14. Navigate to the Actions window.
Click (B) Actions.
15. Create accounting on the invoice:
Check the Create Accountingcheck box.
Select the Final Postbutton.
Click (B) OK.
16. Verify that you receive the following message, Accounting has been successfully createdfor this transaction.
17. Click (M) ReportsView Accounting.
18. In the Subledger Journal Entry Lines screen, verify that you see (as a minimum) thefollowing accounting (you may see additional accounting lines, depending on taxes applied
to your transaction):
Account GL DateAccounting
ClassAccounted
DRAccounted
CR
001.100.63580.0000.730.000.000 Yourdate
ItemExpense
1000.00
001.200.22100.0000.000.000.000 Yourdate
Liability 1000.00
001.100.63920.0000.730.000.000 Yourdate
Non-recoverabletax
100.00
001.200.22100.0000.000.000.000 Yourdate
Liability 100.00
19. Close the Invoice Workbench form.
-
7/25/2019 EBizTax SG Practice US
48/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 36
Test Your Tax Setup by Entering an Invoice in Receivables
Note: In order to be able to run the Create Accounting Process for Receivables, the accountingperiod must be open both in Accounts Receivable and in General Ledger.
To open the Accounting period in Accounts Receivable, using the Receivables, SSC US OU 01responsibility, navigate to Control Accounting Open/Close Periods. Click (B) Open NextPeriod until the Latest Open period changes to the current period.
To open the accounting period in General Ledger, use the General Ledger, SSC USresponsibility to navigate to Setup Open/Close and click (B) Find in the Find window. Click(B) Open Period and enter the current period as the target period and click (B) OK. You will beasked if you are sure. Click (B) OK. This opens all periods in General Ledger between the lastpreviously opened period and the target period.
1. Using the Receivables, SSC US OU 01responsibility, navigate to the Transactions form.
(N) TransactionsTransactions
2. Enter a customer invoice based on the following header information:
Field Value
Source Manual-Other (default)
Date Instructor Assigned
GL Date Instructor Assigned
Class Invoice (default)
Currency USD (default)
Type Invoice (default)
Legal Entity SSC OU 01 (default)
3. Navigate to the Main region.
(ST) Main
4. Enter Ship To information:Field Value
Ship To ABC Application Software
(be sure to use the New Yorkaddress)
5. Enter payment terms of 2/10, Net 30(normally this information defaults from the customerrecord).
-
7/25/2019 EBizTax SG Practice US
49/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 37
6. Navigate to Main region of the Line Items page.
Click (B) Line Items.
(ST) Main
7. Enter invoice line information based on the following:
Field Value
Num 1
Description XXTAXTEST001
UOM Each
Quantity 1
Unit Price 1000.00
8. Save your invoice.
Click (I) Save.
9. Navigate to the Tax page.
Click (B) Tax.
10. Verify that you see the following information about your tax.
Field Value
Tax Regime Code: XXUSSALESTAXREGIME
Tax: XXUSSALESTAX
Jurisdiction: XXTAXJURISDICTION
Tax Status: XXUSSALESTDSTATUS
Rate Name: XXUSSALESTAXRATE
Rate: 10.000
Tax Amount: 100.00
11. Close the Detail Tax Lines window.
Click (B) Cancel.
12. Close the Lines window.
13. Change the invoice status to Complete.
Click (B) Complete.
14. Generate the accounting for the Receivables invoice:
Select (M) ToolsCreate Accounting.
15. In the Create Accounting window, select Create Final Accounting Post to GL.
Click (B) OK.16. Verify that you receive the following message, Accounting has been successfully created
for this transaction.
Click (B) OKto acknowledge message.
17. View the accounting by selecting (M) ToolsView Accounting.
18. In the Subledger Journal Entries window, verify that you see the following at a minimum(additional lines may have been created depending on the taxes applied to yourtransaction).
-
7/25/2019 EBizTax SG Practice US
50/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 38
AccountGL
DateAccounting
ClassAccounted
DRAccounted
CR
001.100.12100.0000.000.000.000 Yourdate
Receivable 1100.00
001.100.41000.0000.425.000.000 Yourdate
Revenue 1000.00
001.100.25300.0000.000.000.000 Yourdate
Tax 100.00
19. The Receivable and Revenue accounts were determined from AutoAccounting setup in theAccounts Receivable module. The Tax account is derived from the tax account setup foryour XXUSSALESTAX tax, if that is the way AutoAccounting is defined.
Note: You can override the tax calculation and enter manual tax lines on invoices if youselected the Allow Override for Calculated Tax Lines and Allow Manual Entry of Tax Linesoptions at the Tax level.
20. Click (H) Close Windowto return to the Transactions form.
21. Close the Transactions form.
-
7/25/2019 EBizTax SG Practice US
51/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 39
Test Your Tax Setup by Entering a Purchase Order in Purchasing
Note: In order to open an accounting period in Purchasing, using the Purchasing, SSC US OU01 responsibility to navigate to Setup/Financials/Accounting/Control Purchasing Periods.
To open the accounting period in General Ledger, use the General Ledger, SSC USresponsibility to navigate to Setup Open/Close and click (B) Find in the Find window. Click(B) Open Period and enter the current period as the target period and click (B) OK. You will be
asked if you are sure. Click (B) OK. This opens all periods in General Ledger between the lastpreviously opened period and the target period.
1. Using the Purchasing, SSC US OU 01responsibility, navigate to the Purchase Order form.
(N) Purchase OrdersPurchase Orders
2. Select (M) ToolsPreferencesto set your session preferences.
3. In the Purchase Order Preferences form, enter:
Field Value
Charge Account 001.100.63580.0000.000.000.000
Click (B) Apply.
Verify that you receive the message, New Preferences now in effect.
Close the Purchase Order Preferences screen.
4. In the Purchase Orders screen, enter a purchase order:
Field Value
Operating Unit SSC US 01 (default)
Type Standard PurchaseOrder (default)
Supplier Advantage Corp.
Site US CHECK
Ship To SSC US OU 01 002
Bill To SSC US OU 01 - 002
-
7/25/2019 EBizTax SG Practice US
52/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 40
5. In the Lines region, enter:
Field Value
Num 1 (default)
Type Goods (default)
Category MISC.MISC
Description Copy Paper
UOM Each
Quantity 1
Price 100.00
Promised Today + 1 day
6. Click (I) Saveto save your purchase order.
7. Navigate to (M) ActionsManage Tax.
8. In the Tax: Standard Purchase Order XXX screen, click (H) Showin the Details region forline 1 of your purchase order.
9. Verify that you see the following for your tax.
Field Value
Tax Regime Code XXUSSALESTAXREGIME
Tax XXUSSALESTAX
Tax Status Code XXUSSALESSTDSTAUS
Tax Jurisdiction Code XXTAXJURISDICTION
Tax Rate Code XXUSSALESTAXRATE
Percentage Rate 10
Tax Amount 10
10. You may also see taxes from other students in the class.
11. Click (H) Close Windowto return to the purchase order form.
12. Close the purchase order form.
-
7/25/2019 EBizTax SG Practice US
53/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 41
Test Your Tax Setup by Entering a Sales Order in Order Management
1. Using theOrder Management, SSC US OU 01responsibility, navigate to the Sales Orderform.
(N) Orders, Returns Sales Orders
2. In the Sales Orders form, enter:
Field Value
Customer ABC ApplicationSoftware (verify that the536 Madison Avenue,New York, NY addressdefaults
Order Type SSC US OU 01 Order
3. Click the (T) Line Itemstab.
4. In the Line Items tab, enter:
Field Value
Ordered Item P0110
Qty 1
UOM Ea
Unit Selling Price 100.00 (default)
5. Click the (B) Actions.
6. Select Calculate Taxfrom the list of values.
7. In the Line Itemstab, click the (ST) Pricing subtab.
8. Scroll across in the pricing subtab and verify that the tax amount appears as 18.50.(Additional tax may have been calculated depending upon the tax settings on the instance.)
9. Click the (B) Actions.
10. Select View Tax Details.
-
7/25/2019 EBizTax SG Practice US
54/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 42
11. In the Tax Details screen, verify that you see the following:
Tax Regime Tax Tax Status Tax RateCode
Rate Amount
XXUSSALESTAXREGIME XXUSSALESTAX XXUSSALES
STDSTATUS
XXUSSALES
TAXSTDRATE
10 XXussalestaxregim= 10.00
US-SALES-TAX-101 STATE STANDARD STANDARD 4.25 US-SALES-TAX-101 State = 4.25
US-SALES-TAX-101 COUNTY STANDARD STANDARD 0 US-Sales-TAX-10County = 0.00
US-SALES-TAX-101 CITY STANDARD STANDARD 4.25 US-SALES-TAX-101 City = 4.25
(Additional tax may have been calculated depending upon the tax settings on the instance).
-
7/25/2019 EBizTax SG Practice US
55/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 43
Practice - Create Determining Factor Sets
Overview
Complete the steps in the solution.
-
7/25/2019 EBizTax SG Practice US
56/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 44
Practice Solution - Create Determining Factor Sets
Create a Determining Factor Set
1. Log into applications using your login.
2. Select the Tax Managers, SSC US 01responsibility.
3. Navigate to the Tax Determining Factor Setup page:
(N) Advanced Setup OptionsTax Determining Factor Sets
Click (B) Create.
Enter the following information:
Field Value
Tax Determining Factor Set XXSHIPTOSHIPFROM
Name XX Ship To Ship FromCountry
Set Usage Tax Rules (default)
Ledger SSC US
Regime Code XXUSSALESTAXREGIME
Determining Factor Class Geography
Class Qualifier Ship to
Determining Factor Name Country
Enter a 2ndLine:
Determining Factor Class Geography
Class Qualifier Ship From
Determining Factor Name Country
4. Click (B) Apply.
5. Verify that you receive the following confirmation, The tax determining factor set wassuccessfully created.
-
7/25/2019 EBizTax SG Practice US
57/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 45
Create a Condition Set
1. Navigate to the Condition Set page.
(T) Advanced Setup Options(ST) Tax Condition Sets
Click (B) Create.
Enter the following information:
Field ValueTax Condition Set XXUSSHIPTOFRANCESHIPFROM
Name XX US Ship to/France Ship From
Determining Factor Set XXSHIPTOSHIPFROM
Click (B) Continue.
2. In the Create Tax conditions window, enter:
Field Value
Ship From Operator Equal To
Ship From Value/FromRange France
Ship To Operator Equal To
Ship To Value/From Range United States
Click (B) Finishto return to the Tax Condition Sets page.
3. Verify that you receive the following confirmation, The tax condition set was successfullycreated.
-
7/25/2019 EBizTax SG Practice US
58/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 46
Modify the Tax Determination Steps to Use a Rule Using YourCondition Set
1. Navigate to the Rules page.
(T) Tax Configuration(ST) Tax Rules
2. In the Tax Rules search region, enter:
Field Value
Configuration Owner Global Configuration Owner
Tax Regime Code XXUSSALESTAXREGIME
Tax XXUSSALESTAX
Click (B) Go.
3. Select the (I) Expert Rule Entryfor the Determine Tax Applicability Rule Type.
4. In the Create Tax Rule: General Information page, enter:
Field Value
Tax Law Reference XXTAXLAWUS/FRANCE
Description XXUSSALESTAX not applicable whenship from is FRANCE.
Rule Code XXUSSHIPTOFRANCESHIPFROMNA
Rule Name XX Tax Not app. When US shipto/France Ship From
Effective From 01-JAN-1950
Effective To Leave blank
Determining Factor
Set Code
XXSHIPTOSHIPFROM
Click (B) Nextin the Step 1 of 3 page.
5. In the Create Tax Rule: Rule Conditions page, enter:
Field Value
Condition Set Code XXUSSHIPTOFRANCESHIPFROM
Name XX US Ship to/France Ship From(default)
Order 1
Result Not Applicable
Click (B) Nextin the Step 2 of 3 page.
6. In the Create Tax Rule: Rule Order page, enter
Field Value
Enable YES!!!! CHECK THIS BOX!!
Rule Order 1
-
7/25/2019 EBizTax SG Practice US
59/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 47
Click (B) Finishin the Step 3 of 3 page.
7. Verify that you receive the following confirmation, The tax rule was successfully created.
8. Click (H) Hometo return to the Navigator.
-
7/25/2019 EBizTax SG Practice US
60/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 48
Test Your Tax Setup by Entering an Invoice in Payables
Note: In order to be able to run the Create Accounting Process in Payables for your invoice, theaccounting period must be open in Accounts Payable and in General Ledger.
To open the accounting Period in Accounts Payable, navigate to Setup Calendar Accounting Accounting Periods, query for the current period, and change its status to Open.
To open the accounting period in General Ledger, navigate to Setup Open/Close and click
(B) Find in the Find window. Click (B) Open Period and enter the current period as the targetperiod and click (B) OK. You will be asked if you are sure. Click (B) OK. This opens all periodsin General Ledger between the last previously opened period and the target period.
Tasks
1. Using the Payables, SSC US OU 01responsibility, navigate to the Invoices form.
(N) InvoicesEntryInvoices
2. Enter a standard invoice based on the following header information:
Field Value
Operating Unit SSC US 01 (default)
Type Standard (default)
Trading Partner Advantage Corp
Supplier Site FR CHECK!!!!
Invoice Date Instructor Assigned
Invoice Number XXAPTAXTESTFRSHIPFROM001
Currency EUR (default)
Invoice Amount 1000.00
GL Date Instructor Assigned (default)
Payment Method Electronic
3. Accept all other defaults.
Note: Do notsave!!
4. Navigate to the Lines region.
(ST) 2 Lines
-
7/25/2019 EBizTax SG Practice US
61/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 49
5. Enter invoice line information based on the following:
Field Value
Line 1 (default)
Type Item (default)
Amount 1000.00
Distribution Account 001.100.63580.0000.730.000.000
Description Office Supplies
6. Save your invoice.
Click (I) Save.
7. Calculate the Tax
Click (B) Calculate Tax.
8. Verify that your XXUSSALESTAX tax is not applied. The tax rule you created specifies thetax is notapplicable when the Ship From country is France.
9. Close the Invoice Workbench to return to the Navigator.
-
7/25/2019 EBizTax SG Practice US
62/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 50
Practice - Create Tax Zones
Overview
Complete the steps in the solution.
-
7/25/2019 EBizTax SG Practice US
63/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 51
Practice Solution - Create Tax Zones
Tasks
In this practice you will create a Tax Zone for the countries in the EU.
Creating a Tax Zone Type
1. Log into applications. Select the Tax Managers SSC US 01responsibility.2. Navigate to the Tax Zone Types page.
(N) Advanced Setup Options > Tax Zone Types
(B) Create Tax Zone Type
3. Create a tax zone type based on the following information:
Field Value
Tax Zone Type XXEUTAXZONETYPE
Country Blank
Zone Creation Allowed Yes
(B) Apply (The system returns you to the Tax Zone Types search page.)
Creating a Tax Zone
4. Navigate to the Tax Zone page.
XXEUTAXZONETYPE > (I) View Existing Zones
(B) Create Tax Zone
5. Create a tax zone based on the following information:
Field Value
Tax Zone XXEUTAXZONE
Code XX EU Not applicableTax Zone
Code Type Tax Geography Code
Start Date 01-JAN-1950
End Date Blank
Time Zone Blank
6. Select countries to add to the tax zone:
Field Value
Add All (B) Go
Field Value
Country Name Italy
(I) Quick Select
Field Value
-
7/25/2019 EBizTax SG Practice US
64/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 52
Add All
(B) Go
Field Value
Country Name United Kingdom
(I) Quick Select
Change the dates to 01-Jan-1950.
(B) Apply
7. Verify that you receive a confirmation message This Tax Zone has been created:XXEUTAXZONE.
-
7/25/2019 EBizTax SG Practice US
65/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 53
Add a New Rule to the Determine Tax Applicability Step to Make TaxNot Applicable for All Countries in Your Tax Zone.
1. Go to Tax Configuration/Tax Rules.
2. In the Tax Rules Search screen, enter:
Field Value
Configuration Owner Global ConfigurationOwner
Tax Regime Code XXUSSALESTAXREGIME
Tax XXUSSALESTAX
Click (B) Go.
3. Select (I) Guided rule entry iconon the Determine Tax Applicability step.
4. In the Create Tax Rule: General Information screen, click the + sign for Tax Law Details.
5. In the Create Tax Rule: General Information screen, enter the following:
Field Value
Tax Law Reference: XXNAEUTAXZONE
Description: XX Not applicable EU Tax Zone
Use the tax lawreference
Selected
Effective From 01-JAN-1950
This rule applies toall transactions:
Selected
6. Click the (B) Nextbutton in the Step 1 of 5 screen.
7. In the Create Tax Rule: Determining Factors and Conditions screen, in the Transaction tab,in the Locations region, enter the following:
Field Value
Location Type: Ship From
Geography Type: XXEUTAXZONETYPE
Operator: Equal To
Value: XXEUTAXZONE
8. Click the (B) Nextbutton in the Step 2 of 5 screen.
9. In the Create Tax Rule: Condition Results, select Not Applicablein the Applicable tax field.
10. Click the (B) Nextbutton in the Step 3 of 5 screen.
11. In the Create Tax Rule: Rule Order screen, enter the following for XXEUNATTAXZONE:
Field Value
-
7/25/2019 EBizTax SG Practice US
66/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 54
Enable Yes!!!! Select this box!!
Rule Order 2
12. Click the (B) Nextbutton in the Step 4 of 5 screen.
13. In the Create Tax Rule: Rule Sets screen, enter:
Field Value
Determining Factor Set XXTAXZONE
Name XX Tax Zone
Condition Set XXEUNATAXZONE
Name XXEUNATAXZONE
14. Click (B) Finishin the Step 5 of 5 screen.
15. Verify that you receive confirmation that the rule was successfully created.
-
7/25/2019 EBizTax SG Practice US
67/178
-
7/25/2019 EBizTax SG Practice US
68/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 56
5. Enter invoice line information based on the following:
Field Value
Line 1 (defaults)
Type Item (defaults)
Amount 1000.00
Distribution Account 001.100.63580.0000.730.000.000
Description Office Supplies
6. Save your invoice.
Click (I) Save.
7. Calculate the Tax.
Click (B) Calculate Tax.
8. Verify that your XXUSSALESTAX tax is not applied. The tax rule you created specifies thetax is notapplicable when the Ship From country belongs to the XXEUTAXZONE.
9. Close the Invoice Workbench to return to the Navigator.
-
7/25/2019 EBizTax SG Practice US
69/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 57
Practice - Create Customer Tax Exemptions
Overview
Complete the steps in the solution.
-
7/25/2019 EBizTax SG Practice US
70/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 58
Practice Solution - Create Customer Tax Exemptions
Create a Customer
Overview
In this lab, you will create a customer tax exemption for a specific customer for a specific item
for which the customer is tax-exempt.
Tasks
1. Using the Receivables, SSC US 01 responsibility, navigate to the Customer Creation page.
(N) CustomersCreate/MaintainCustomers
Click (B) Createin the Customers screen.
2. In the Create Organization page, enter the following:
Field Value
Organization Name XXCUSTOMER
Address Line 1 540 Madison Avenue
City New York
County New York
State NY
Postal Code 10022
Operating Unit SSC US 01 (Defaults)
3. Scroll down to the Business Purposes region and click the Primary flag next to the Bill toBusiness Purpose.
4. Click (B) Save and Add Details. After the save is completed, you should be returned tothe Update Account screen.
5. In the update Account screen, click (I) Detailsin the Account Sites region.
6. In the Site: XXXX screen, click the (T) Business Purposes.
7. In the Business Purposes tab, note that a Bill to Business Purpose has been created for theNew York address with a location number and has been identified as the primary Bill To.
8. Click the (B) Add Another Rowin the Business Purposes tab.
-
7/25/2019 EBizTax SG Practice US
71/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 59
9. Enter the following:
Field Value
Purpose Ship To
Bill to Location Choose the location ID of theBill to location
Primary Selected
10. Click (B) Save.
11. Verify that you receive the confirmation message, Your changes have been saved.
12. Click the (B) Details button for the Bill To Site Usage.
13. In the Account Site Purpose: Bill To screen, scroll down and enter Alan Richardsas thesalesperson in the Site Use Details region.
14. Click (B) Applyto return to the Site screen.
15. Click (B) Applyto return to the Update Account screen.
16. Click (B) Applyto return to the Customers screen.
17. Verify that you receive a message that your changes have been saved.
-
7/25/2019 EBizTax SG Practice US
72/178
Copyright Oracle, 2008. All rights reserved.
R12.x Oracle E-Business Tax Fundamentals - Student Practices - US
Chapter 1 - Page 60
Create a Customer Tax Exemption for a Specific Item
Tasks
1. Using theTax Managers, SSC US 01 responsibility, navigate to the Party Tax Profilespage.
(N) Parties -> Party Tax Profiles
2. Search for your