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Oracle Advisor Webcast

E-Business Tax Series (Part - III) :
Creation of Regime to Rate Flow setup (MFG perspective)
Ajit Goley

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Doc ID 740966.1

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Oracle Advisor Webcast

E-Business Tax Series : Part - III
Creation of Regime to Rate Flow setup (MFG perspective)
Ajit Goley

Copyright 2014, Oracle and/or its affiliates. All rights reserved.

Objectives

To understand the process followed

for creating Regime to Rate flow setup in
E-Business Tax.
To understand the process of creating:
Tax Recovery Rate
Tax Jurisdiction
Default Tax Rules
User Defined Tax Rules

10

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Agenda

Regime to Rate Flow Concept

Creating Tax Jurisdiction
Creating a Tax Recovery Rate
Creating Default Tax Rules
Checkbox Make Tax Available for Transactions
Creating User Defined Tax Rules

11

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Oracle E-Business Tax Set Up Creation Procedure

Pre-requisites for E-Business Tax Set up
Creating Geography
Structure

Tax
Regime

Creating Tax Zones

Creating Tax Authority

Creating Legal Entities and

Establishments (First Party)

Regime to Rate Flow Set up

Tax

Tax Status

Tax Rate

Tax Jurisdiction

Tax Recovery Rate

Default Tax Rules

Select the checkbox - Make Tax Available for Transactions in the Tax page
You are READY to use the created E-Business Tax setup in Transactions
Party Fiscal Classification

Fiscal Classification (if required)

Product Fiscal Classification

Transaction Fiscal Classification

User Defined Tax Rules (if required)

12

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Regime to Rate Flow: AUSTRALIA VAT STATE

LEVEL TAX
TAX REGIME (Commercial Taxes)

First Party
TAX

TAX JURISDICTION

TAX RECOVERY RATE

New
South
WalesN

Sales Tax

STATE
NAMES

VAT

Service Tax
First Party

13

TAX RATE

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Queensland
N
TAX REGIME (Commercial Taxes)

20% VAT is
Recoverable

TAX REGIME (Commercial Taxes)

TAX REGIME (Commercia Taxes)

Tax
Authority

TAX STATUS

Default Tax Rules Australia VAT (MFG Perspective)

Default Tax Rules : (N): Tax Manager Responsibility > Tax Configuration > Tax Rules Webpage
Condition:
Ship To STATE = New South Wales
Ship From STATE = New South Wales
Rule No.

Rule Type

Default Tax Rules (specified)

Direct Tax Rate Determination

Not Required

Place of Supply

Ship To

Tax Applicability

Applicable

Tax Registration

Ship From

Determine Tax Status

AUS_VAT_STANDARD

Determine Tax Rate

AUS_VAT_RATE_4%

Taxable Basis

STANDARD_TB

Calculate Tax Amounts

STANDARD_TC

14

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Checkbox: Make Tax Available for Transactions

Taxes: (Navigation: Tax Manager Responsibility > Tax Configuration > Taxes)

In order to use E-Business Tax in Transactions, make sure that the Checkbox Make Tax Available for Transactions is selected.

15

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User Defined Tax Rules Australia VAT (MFG Perspective)

Taxes: (Navigation: Tax Manager Responsibility > Tax Configuration > Taxes)
Rule No.
Rule Type
1
Direct Tax Rate Determination
2
Place of Supply
3
Tax Applicability
4
Tax Registration
5
Determine Tax Status

Default Tax Rules

Rule Order

No Rules Required
No Rules Required
No Rules Required
No Rules Required

Ship To
Applicable
Ship From
AUS_VAT_STANDARD
1

2
6
7
8

16

Determine Tax Rate

Taxable Basis
Calculate Tax Amounts

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AUS_VAT_RATE_4%
STANDARD_TB
STANDARD_TC

User Defined Tax Rules

If Ship From STATE <> New South Wales and

If Ship To STATE = New South Wales
Then Tax Status should be:
AUS_VAT_INTERSTATE ( Tax Rate -10%)
If Ship From STATE = New South Wales and
If Ship To STATE <> New South Wales
Then Tax Status should be:
AUS_VAT_ZERO_RATED ( Tax Rate -0%)
Define exactly same rules as that of Tax Status
No Rules Required
No Rules Required

User Defined Rules creation : Guided Rule Entry

There are 2 methods available to define a Rule.
1. Guided Rule

The Guided Tax Rule Entry provides a Five-Step flow that lets you build
Determining Factors and Tax Conditions as you create the tax rule.

2. Expert Rule
The Expert Tax Rule Entry provides a concise, Three-Step entry flow that
makes use of Determining Factor Sets and Tax Condition Sets that you have
previously defined.

17

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User Defined Rules creation

Guided Rule Entry in Tax Rules Webpage

General Rule
Info

Rule
Conditions

Rule Results

Specify Rule
Code

Place
Determining
Factors

Condition Result
will depend on
the Rule Type

Transaction
Determining
Factors

(i.e. Determine
Tax Status, the
results will be a
Tax Status

Specify Rule
Name
Mention Law
Reference
Specify Effective
Dates

Party
Determining
Factors

Specify
Applicable
Applications

Product
Determining
Factors

18

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Rule Order
Specify which
order the rule
conditions must
be evaluated

Rule Sets
Specify
Determining Factor
Set Code and
Name

Specify Condition
Set Code and
Name

User Defined Rules creation

Expert Rule Entry in Tax Rules Webpage
Tax
Determining
Factor Sets
Create a Tax
Determining Factor
Set taking required
Determining Factor
(Place, Party,
Product, Process
[Transaction] into
consideration.
(N): Tax Manager >
Advance Setup
Options > Tax
Determining
Factors Sets

19

Tax Condition
Sets
Create a Tax
Condition Set based
on the previously
created Tax
Determining Factor
Set
(N): Tax Manager >
Advance Setup
Options > Tax
Condition Sets
.

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Step 1
General Rule
Information

Step 2
Rule
Conditions

Mention Tax Law

Reference.

Link the previously

Specify the Tax

Rule Code and
Name.
Specify Tax Rule
Effective Dates.
Link the
previously created
Tax Determining
Factor Set Code.
Specify applicable
Applications (if
required)

created Tax Condition

Set Code.

What should be the

Result for the
specified Tax
Condition ?
Condition Result will
depend on the Rule
Type (i.e. Determine
Tax Status, the
results will be a Tax
Status.

Step 3
Rule Order
Specify which
Order the rule
conditions must be
evaluated.
Make the tax rule
Enable.

Live Demo

20

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Summary
What we covered today

Explained the process followed

for creating Regime to Rate flow setup in
E-Business Tax.
Clarified the process of creating:
Tax Recovery Rate
Tax Jurisdiction
Default Tax Rules
User Defined Tax Rules

21

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Top Articles and Community Links

Relevant KM articles can be found in the
following community link.
https://community.oracle.com/thread/3553398

The following thread will have a copy of the

presentation and can be used for additional
questions or discussions on this topic.
https://community.oracle.com/thread/3550398

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Learn More
Available References and Resources to Get Proactive

About Oracle Support Best Practices

www.oracle.com/goto/proactivesupport
Get Proactive in My Oracle Support
https://support. oracle.com | Doc ID: 432.1
Get Proactive Blog
https://blogs.oracle.com/getproactive/
Ask the Get Proactive Team
get-proactive_ww@oracle.com

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Questions & Answers

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THANK YOU
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