Friday, March 17, 2017

How to setup Oracle Ebs Tax (R12 – EB-Tax setup)

In Oracle R12 a new module called E-business Tax has been introduced for maintenance of all tax related requirements of different geographical locations.




1.     TAX REGIME: Tax Regime is setup for the taxes in each country and a geographic region where you do business and where a separate tax applies. A tax regime associates a common set of default information, regulations, fiscal classifications and registrations to one or more taxes with same tax requirement.
2.     TAXES: Tax is classification of a charge imposed by a Government through a fiscal or a tax authority. Each separate tax in a tax regime includes records for statuses, tax rates and rules used to calculate and report tax requirements
3.     TAX STATUS: Tax Status is the taxable nature of a product or service in the context of a transaction for a tax.
4.     TAX JURISDICTION: A geographic area where a tax is levied by a specific tax authority.
5.     TAX RATE: The rate specified for a Tax status in effect for a period of time; the tax rate can be expressed as a percentage or as a value per unit quantity
6.     TAX RULES: E-business tax uses the tax setups along with the tax rules to decide which taxes apply to a transaction and how to calculate the tax amount for each tax that applies to a transaction.


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