E Business Tax Document

Created By
Bhuvaneswari.G

In R12 E Business Tax Replaced the Receivables Tax Engine. It is mandatory

to define the Regime to rate Flow in E Business Tax. So that the tax get defaulted to the
transactions

Setups:

1. Define Party Tax Profiles

2. Define Tax configurations
Tax Regime
Taxes
Tax Status Code
Tax Jurisdiction
Tax Recovery Rate
Tax Rate
Tax Rules
3.Regime to Rate Flow
4.Tax Applicability to the Applications

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Creating Party Profiles

Navigation: E Business TaxPartiesParty Tax Profiles

Select Party Type- Operating Unit Owing Tax Content

Party Name- Operating Unit and GO

Go to Create Tax profile

Note: For India Localization Do not check the Use Subscription of the Legal Entity

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 Tax Configuration:

Navigation: E Business TaxTax Configurations

Tax Regime Creation:

Navigation: E Business TaxTax ConfigurationsTax Regime

Add Party Configurations

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 Tax Creation:

Navigation: E Business TaxTax ConfigurationsTaxes

Select Primary Recovery Rate as PREC1 (Predefined) or go for user defined. In case of user
defined, define the recovery rate and the select it as Primary Recovery Rate

Tax Status:

Navigation: E Business TaxTax ConfigurationsTax Status

Create Tax Status as Standard and set it as Default Status

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 Tax Jurisdiction Code:

Navigation: E Business TaxTax ConfigurationsTax Jurisdiction

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 Tax Rate Creation:

Navigation: E Business TaxTax ConfigurationsTax Rate

Create Tax Rate as LOCRATE and set the Rate as ZERO

Go to Rate Details, Set the LOCRATE as Default Rate

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 Query the Tax Rate where you can select appropriate ledger and OU, and can give the Account
details

Tax Rule Application:

Navigation: E Business TaxTax ConfigurationsTax Rules

Give the Configuration Owner, Tax Regime Code, Tax and GO

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Select the Rule Type as Determine Place of Supply and go to Set Default
Select the Rule Type Default as Ship to, use bill to if ship to is not found and apply it

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Select the Rule Type as Determine Tax Registration and go to Set Default
Select the Rule Type Default as Ship to, use bill to if ship to is not available and apply it

Select the Rule Type as Determine Taxable Basis and go to Set Default
Select the Rule Type Default as STANDARD_TB and apply it

Select the Rule Type as Calculate Tax Amount and go to Set Default

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 Select the Rule Type Default as STANDARD_TC and apply it

Select the Rule Type as Determine Tax Applicability and go to Set Default
Select the Rule Type Default as APPLICABLE and apply it

Determine Tax Rate

Select Guided Rule entry for the Rule Type- Determine Tax Rate
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 Enter The Rule Code:

Determining Factors and Conditions

Conditions Results:

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 The tax Rate is selected

Rule Order:

Give the rule order and enable the order

Rule Sets:

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Query the Tax rule for Tax-LOCALIZATION, where u can see the applicability of rules

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 Tax Recovery Rate Code Creation:

Navigation: E Business TaxTax ConfigurationsTax Recovery Rate

Create the Tax Recovery Rate and Set it as Default Recovery rate

Query the Tax by name LOCALIZATION

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Go to Update and enable the Check Box Make Tax Available for Transactions and give
the Default Primary Recovery Rate Code as BB Tax Recovery Rate

By saving the work, the confirmation message will pop up

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Regime to Rate Flow:

Query the BB TAX REGIME and Click the Regime to Rate Flow:

Making Tax Available To the Applications:

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 Navigation: E Business TaxDefaults and Controls Application Tax Options-Create

Select the Operating Unit and the Required Applications

Likewise the Operating Unit can be associated to Receivables, Purchasing and So on

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