dbmanagement.infodbmanagement.info/Books/MIX/r12_oracle_e-business... · Copyright © 2009, Oracle. All rights reserved. R12 Oracle E-Business Tax Fundamentals Table of Contents iii

R12 Oracle E-Business Tax Fundamentals Activity Guide - UK

D49306GC30

Edition 3.0

February 2009

D58451

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Copyright © 2009, Oracle. All rights reserved.

This documentation contains proprietary information of Oracle Corporation. It is provided under a license agreement containing restrictions on use and disclosure and is also protected by copyright law. Reverse engineering of the software is prohibited. If this documentation is delivered to a U.S. Government Agency of the Department of Defense, then it is delivered with Restricted Rights and the following legend is applicable:

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Use, duplication or disclosure by the Government is subject to restrictions for commercial computer software and shall be deemed to be Restricted Rights software under Federal law, as set forth in subparagraph (c)(1)(ii) of DFARS 252.227-7013, Rights in Technical Data and Computer Software (October 1988).

This material or any portion of it may not be copied in any form or by any means without the express prior written permission of the Education Products group of Oracle Corporation. Any other copying is a violation of copyright law and may result in civil and/or criminal penalties.

If this documentation is delivered to a U.S. Government Agency not within the Department of Defense, then it is delivered with “Restricted Rights,” as defined in FAR 52.227-14, Rights in Data-General, including Alternate III (June 1987).

The information in this document is subject to change without notice. If you find any problems in the documentation, please report them in writing to Worldwide Education Services, Oracle Corporation, 500 Oracle Parkway, Box SB-6, Redwood Shores, CA 94065. Oracle Corporation does not warrant that this document is error-free.

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Author

Mary Kalway, Robert MacIssac

Technical Contributors and Reviewers

Ramasubramanian Balasundaram, Rajesh Bhatt, Nigel Chapman, Kevan Davies, Julianna Dodick, Nirajita Mitra, Anand Naik, Pamela Rietz, Christine Rudd, Harsh Takle, Brijesh Thakkar, Amit Vohra, Kathryn Wohnoutka, Andrea Auld, Christine Rudd

This book was published using: oracletutor

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R12 Oracle E-Business Tax Fundamentals Table of Contents i

Table of Contents

R12 Oracle E-Business Tax Fundamentals - Student Practices - UK .........................................................1-1 R12 Oracle E-Business Tax Fundamentals ...................................................................................................1-2

Practice - Enter an Invoice in AP and AR To Review the Tax Setup for Vision UK................................1-3 Solution - Enter an Invoice in AP and AR To Review the Tax Setup for Vision UK ..............................1-6 Practice - Create a New Employee ...........................................................................................................1-10 Solution - Create a New Employee...........................................................................................................1-12 Practice - Create a New User.....................................................................................................................1-14 Solution - Create a New User ....................................................................................................................1-16 Practice - Set Yourself Up As a Buyer ......................................................................................................1-18 Solution - Set Yourself Up As a Buyer......................................................................................................1-19 Practice - View the Legal Entity Setup......................................................................................................1-20 Solution - View the Legal Entity Setup .....................................................................................................1-21 Practice - View the Tax Authority .............................................................................................................1-22 Solution - View the Tax Authority ............................................................................................................1-23 Practice - Create a Regime to Rate Tax Model..........................................................................................1-24 Create a New Tax Regime.........................................................................................................................1-25 Create a Tax...............................................................................................................................................1-27 Create a Tax Status ....................................................................................................................................1-28 Create a Tax Rate ......................................................................................................................................1-29 Create a Tax Jurisdiction ...........................................................................................................................1-30 Create Recovery Rates and Associated Accounts......................................................................................1-31 Enter Tax Rule Defaults ............................................................................................................................1-32 Make Tax Available for Transactions and Specify the Recovery Rate Code ............................................1-34 Test Your New Tax by Entering an Invoice in Payables ...........................................................................1-35 Enter an Invoice in Receivables.................................................................................................................1-37 Solution - Create a Regime to Rate the Tax Model ...................................................................................1-39 Create a Tax...............................................................................................................................................1-41 Create a Tax Status ....................................................................................................................................1-42 Create a Tax Rate ......................................................................................................................................1-43 Create a Tax Jurisdiction ...........................................................................................................................1-45 Create Recovery Rates and Associated Accounts......................................................................................1-46 Enter Tax Rule Defaults ............................................................................................................................1-47 Make Tax Available for Transactions and Specify the Recovery Rate Code ............................................1-49 Test Your New Tax by Entering an Invoice in Payables ...........................................................................1-50 Enter an Invoice in Receivables.................................................................................................................1-53 Practice - Run a Tax Register Report .......................................................................................................1-56 Solution - Run a Tax Register Report.......................................................................................................1-57 Practice - Run the Tax Audit Trail Report................................................................................................1-58 Solution - Run the Tax Audit Trail Report ...............................................................................................1-59 Practice - Run the Tax Reconciliation Report ..........................................................................................1-60 Solution - Run the Tax Reconciliation Report..........................................................................................1-61 Practice - Create Tax Zones......................................................................................................................1-62 Solution - Create Tax Zones .....................................................................................................................1-64 Practice - Create a Determining Factor Set...............................................................................................1-67 Create a Determining Factor Set................................................................................................................1-68 Create a Condition Set ...............................................................................................................................1-69 Modify the Tax Determination Steps to Use a Rule Using Your Condition Set........................................1-70 Test Your Tax Setup by Entering an Invoice in Receivables ....................................................................1-72 Solution - Create a Determining Factor Set ..............................................................................................1-74 Create a Determining Factor Set................................................................................................................1-75 Create a Condition Set ...............................................................................................................................1-76 Modify the Tax Determination Steps to Use a Rule Using Your Condition Set........................................1-77

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Test Your Tax Setup by Entering an Invoice in Receivables ....................................................................1-79 Practice - Create an Intra-EU Rule Example for AP .................................................................................1-82 Create a New Supplier ...............................................................................................................................1-83 Verify the Supplier Records Registration Status .......................................................................................1-85 Create an Intra-EU STD Status..................................................................................................................1-86 Create an Intra-EU STD Rate ....................................................................................................................1-87 Create a Determining Factor Set................................................................................................................1-89 Create a Condition Set ...............................................................................................................................1-90 Modify the Tax Determination Steps to Use a Rule Using Your Condition Set........................................1-91 Test Your Tax Setup by Entering an Invoice in Payables .........................................................................1-93 Solution - Create an Intra-EU Rule Example for AP.................................................................................1-95 Verify the Supplier Records Registration Status .......................................................................................1-97 Create an Intra-EU STD Status..................................................................................................................1-98 Create an Intra-EU STD Rate ....................................................................................................................1-99 Create a Determining Factor Set................................................................................................................1-101 Create a Condition Set ...............................................................................................................................1-103 Modify the Tax Determination Steps to Use a Rule Using Your Condition Set........................................1-105 Test Your Tax Setup by Entering an Invoice in Payables .........................................................................1-107 Practice - Create an Intra-EU Rule Example for AR................................................................................1-109 Create a Customer .....................................................................................................................................1-110 Verify the Customer Records Registration Status .....................................................................................1-112 Create an INTRA-EU ZERO Status ..........................................................................................................1-113 Create an INTRA-EU ZERO Rate.............................................................................................................1-114 Create a Determining Factor Set................................................................................................................1-116 Create a Condition Set ...............................................................................................................................1-117 Modify the Tax Determination Steps to Use a Rule Using Your Condition Set........................................1-118 Test Your Tax Setup by Entering an Invoice in Receivables ....................................................................1-120 Solution - Create an Intra-EU Rule Example for AR ................................................................................1-123 Create a Customer .....................................................................................................................................1-124 Verify the Customer Records Registration Status .....................................................................................1-126 Create an INTRA-EU ZERO Status ..........................................................................................................1-127 Create an INTRA-EU ZERO Rate.............................................................................................................1-128 Create a Determining Factor Set................................................................................................................1-130 Create a Condition Set ...............................................................................................................................1-131 Modify the Tax Determination Steps to Use a Rule Using Your Condition Set........................................1-132 Test Your Tax Setup by Entering an Invoice in Receivables ....................................................................1-134 Practice - Create Party Fiscal Classifications ............................................................................................1-137 Create a Party Fiscal Classification Using Trading Community Manager Responsibility ........................1-139 Create a Party Classification in E-Business Tax........................................................................................1-140 Create a New Supplier ...............................................................................................................................1-141 Update the Party Tax Profile for Your Supplier ........................................................................................1-143 Create a Determining Factor Set................................................................................................................1-144 Create a Condition Set ...............................................................................................................................1-145 Modify the Tax Determination Steps to Use a Rule Using Your Condition Set........................................1-146 Solution - Create Party Fiscal Classifications............................................................................................1-148 Create a Party Fiscal Classification Using Trading Community Manager Responsibility ........................1-150 Create a Party Classification in E-Business Tax........................................................................................1-151 Create a New Supplier ...............................................................................................................................1-152 Update the Party Tax Profile for Your Supplier ........................................................................................1-154 Create a Determining Factor Set................................................................................................................1-155 Create a Condition Set ...............................................................................................................................1-156 Modify the Tax Determination Steps to Use a Rule Using Your Condition Set........................................1-157 Practice - Create a Product Fiscal Classification .......................................................................................1-159 Create a Product Classification..................................................................................................................1-161 Use a Guided Rule Entry to Create a New Tax Rule.................................................................................1-162 Enter an Invoice in Receivables to Test Your Rule ...................................................................................1-164 Enter a Purchase Order Matched Invoice in AP to Test Your Rule...........................................................1-165

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Solution - Create Product Fiscal Classifications........................................................................................1-167 Create a Product Classification..................................................................................................................1-169 Use a Guided Rule Entry to Create a New Tax Rule.................................................................................1-170 Enter an Invoice in Receivables to Test Your Rule ...................................................................................1-172 Enter a Purchase Order Matched Invoice in AP to Test Your Rule...........................................................1-173 Guided Demonstration - Create Non-Inventory Product Fiscal Classifications ........................................1-175 Use a Guided Rule Entry to Create a New Tax Rule.................................................................................1-176 Practice - Partially Recoverable Tax Based on Account Codes...............................................................1-178 Create a 50% Recovery Rate .....................................................................................................................1-179 Create a Determining Factor Set................................................................................................................1-180 Create a Condition Set ...............................................................................................................................1-181 Modify the Tax Determination Steps to Use a Rule Using Your Condition Set........................................1-182 Amend Your Tax Setup to Allow Recovery Rate Rules ...........................................................................1-184 Amend Your Tax Rate...............................................................................................................................1-185 Solution: Partially Recoverable Tax Based on Account codes ..................................................................1-186 Create a Determining Factor Set................................................................................................................1-188 Create a Condition Set ...............................................................................................................................1-189 Modify the Tax Determination Steps to Use a Rule Using Your Condition Set........................................1-190 Amend your Tax Setup to Allow Recovery Rate Rules ............................................................................1-192 Amend Your Tax Rate...............................................................................................................................1-193 Practice - Create Product Exceptions........................................................................................................1-194 Create a Product Tax Exception ................................................................................................................1-195 Test Your Tax Setup by Entering an Invoice in Receivables ....................................................................1-196 Solution - Create Product Exceptions .......................................................................................................1-198 Create a Product Tax Exception ................................................................................................................1-199 Test Your Tax Setup by Entering an Invoice in Receivables ....................................................................1-200 Practice - Create a Customer Tax Exemption...........................................................................................1-202 Create the Customer Tax Exemption.........................................................................................................1-204 Test Your Tax Setup by Entering an Invoice in Receivables ....................................................................1-205 Solution - Create a Customer Tax Exemption ...........................................................................................1-207 Create the Customer Tax Exemption.........................................................................................................1-209 Test Your Tax Setup by Entering an Invoice in Receivables ....................................................................1-211 Practice - Create an Offset Tax.................................................................................................................1-214 Create an Offset Tax..................................................................................................................................1-215 Create an Offset Tax Status .......................................................................................................................1-216 Create an Offset Recovery Rates and Associated Accounts......................................................................1-217 Create a Negative Offset Tax Rate ............................................................................................................1-218 Make the Offset Tax Available for Transactions and Specify the Recovery Rate Code ...........................1-220 Attach Offset Tax to Main Tax Rate Details .............................................................................................1-221 Create a Supplier with Offset Tax Enabled ...............................................................................................1-222 Test Your Offset Tax by Entering an Invoice in Payables.........................................................................1-224 Solution - Set Up an Offset Tax................................................................................................................1-226 Create an Offset Tax Status .......................................................................................................................1-227 Create an Offset Recovery Rate and Associated Accounts .......................................................................1-228 Create a Negative Offset Tax Rate ............................................................................................................1-229 Make Offset Tax Available for Transactions and Specify the Recovery Rate Code .................................1-231 Attach Offset Tax to Main Tax Rate Details .............................................................................................1-232 Create a Supplier with Offset Tax Enabled ...............................................................................................1-233 Test Your Offset Tax by Entering an Invoice in Payables.........................................................................1-235 Practice - Create a Regime to Rate the Tax Model....................................................................................1-237 Create a Tax...............................................................................................................................................1-240 Create a Tax Status ....................................................................................................................................1-242 Create Tax Rates........................................................................................................................................1-243 Create a Tax Jurisdiction ...........................................................................................................................1-245 Creating Tax Accounts ..............................................................................................................................1-246 Define the Defaults and Tax Rules for the Steps of the Tax Determination Process.................................1-247 Make Tax Available for Transactions........................................................................................................1-249

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Test Your Tax Setup by Entering an Invoice in Payables .........................................................................1-250 Test Your Tax Setup by Entering an Invoice in Receivables ....................................................................1-253 Test Your Tax Setup by Entering a Purchase Order in Purchasing ...........................................................1-256 Test Your Tax Setup by Entering a Sales Order in Order Management....................................................1-258 Solution - Create a Regime to Rate theTax Model ....................................................................................1-260 Creating a Tax ...........................................................................................................................................1-262 Creating a Tax Status.................................................................................................................................1-264 Create Tax Rates........................................................................................................................................1-265 Create a Tax Jurisdiction ...........................................................................................................................1-267 Creating Tax Accounts ..............................................................................................................................1-268 Define Defaults and Tax Rules for the Steps of the Tax Determination Process ......................................1-269 Make Tax Available for Transactions........................................................................................................1-271 Test Your Tax Setup by Entering an Invoice in Payables .........................................................................1-272 Test Your Tax Setup by Entering an Invoice in Receivables ....................................................................1-275 Test Your Tax Setup by Entering a Purchase Order in Purchasing ...........................................................1-278 Test Your Tax Setup by Entering a Sales Order in Order Management....................................................1-280

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R12 Oracle E-Business Tax Fundamentals Table of Contents v

Preface

Profile

Before You Begin This Course

Before you begin this course, you should have the following qualifications:

• Basic knowledge of business accounting concepts.

• Working experience with business tax requirements.

• Thorough knowledge of Oracle Applications.

Prerequisites

• R12 Navigate Oracle Applications

• R12 eBusiness Suite Essentials for Implementers

How This Course Is Organized

R12 Oracle E-Business Tax Fundamentals Ed 3 is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations and written practice sessions reinforce the concepts and skills introduced.

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Related Publications

Oracle Publications Title Part Number

Oracle E-Business Tax Implementation Guide B25960-01

Oracle E-Business Tax User Guide B25959-01

Oracle E-Business Tax Reporting Guide B31346-01

Oracle Inventory User's Guide B31547-01

Oracle Financials for Europe User Guide B31520-01

Oracle Financials for the Americas User Guide B31525-01

Oracle Financials for Asia/Pacific User Guide B31519-01

Additional Publications

• System release bulletins

• Installation and user’s guides

• Read-me files

• International Oracle User’s Group (IOUG) articles

• Oracle Magazine

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Typographic Conventions

Typographic Conventions in Text Convention Element Example Bold italic Glossary term (if

there is a glossary) The algorithm inserts the new key.

Caps and lowercase

Buttons, check boxes, triggers, windows

Click the Executable button. Select the Can’t 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.ora file. Password: User tiger as your password. Pathname: Open c:\my_docs\projects URL: Go to http://www.oracle.com User input: Enter 300 Username: Log on as scott

Initial cap Graphics labels (unless the term is a proper noun)

Customer address (but Oracle Payables)

Italic Emphasized words and phrases, titles of books and courses, variables

Do not save changes to the database. For further information, see Oracle7 Server SQL Language Reference Manual. Enter [email protected], where user_id is the name of the user.

Quotation marks

Interface elements with long names that have only initial 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 with Objects.”

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]

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Typographic Conventions in Code Convention Element Example Caps and lowercase

Oracle Forms triggers

When-Validate-Item

Lowercase Column names, table names

SELECT last_name FROM s_emp;

Passwords DROP USER scott IDENTIFIED 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 userid FROM emp;

Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you through 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 Invoice then Entry then Invoice Batches Summary.

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab

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R12 Oracle E-Business Tax Fundamentals Table of Contents ix

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.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system window.

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R12 Oracle E-Business Tax Fundamentals - Student Practices - UK Chapter 1 - Page 1

R12 Oracle E-Business Tax Fundamentals - Student Practices - UK Chapter 1

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R12 Oracle E-Business Tax Fundamentals

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Practice - Enter an Invoice in AP and AR To Review the Tax Setup for Vision UK

Tasks

Sign on Field Value

User Name UK

Password welcome

Entering an Invoice in Payables

Field Value

Responsibility Payables Vision UK

1. Navigate to the Invoices page.

2. Enter a standard invoice based on the following header information: Field Value

Trading Partner Advantage Corp

Supplier Site LONDON

Invoice Date Today

Invoice Number XX1

Currency GBP

Amount 1175.00

3. Accept all other defaults.

4. Navigate to the Lines region.

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5. Enter invoice line information based on the following: Field Value

Line 1

Type Item (default)

Amount 1000.00 GBP

Distribution Account 03-110-7459-000-000

Description Test XX

GL Date Today

Business Category Blank

Product Type Blank

Ship To Blank

6. Save your invoice.

7. Validate your invoice.

8. Navigate to the Distributions window.

9. View the tax line distributions.

Entering an Invoice in Receivables

Field UK VAT

Responsibility Receivables Vision UK

1. Navigate to the Transactions page.

2. Enter an invoice based on the following header information: Field UK VAT

Source Manual-Other

Date Today

GL Date Today

Class Invoice (default)

Currency GBP (default)

Type WF_Invoice (default)

Legal Entity Vision Industries (default)

3. Navigate to the Main region.

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4. Enter Ship To information: Field UK VAT

Ship To Business World

5. Navigate to Main region of the Line Items page.

6. Enter invoice line information based on the following: Field UK VAT

Num 1

Description Test XX

UOM Ea

Quantity 1

Unit Price 1000.00 GBP




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Solution - Enter an Invoice in AP and AR To Review the Tax Setup for Vision UK

Tasks

Sign on Field Value

User Name UK

Password welcome

Entering an Invoice in Payables

Field Value

Responsibility Payables Vision UK

1. Navigate to the Invoices page.

• (N) Invoices: Entry > Invoices




Invoice Date Today

Invoice Number XX1

Currency GBP

Amount 1175.00



• (ST) Lines

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Line 1

Type Item (default)

Amount 1000.00 GBP


Description Test XX

Product Type Blank

Ship To Blank

GL Date Today

Business Category Blank


• Click (I) Save.

7. Validate your invoice.

• Click (B) Actions… 1

• Select Validate check box.

• Click (B) OK.


• (B) All Distributions


Entering an Invoice in Receivables

Field Value

Responsibility Receivables Vision UK


• (N) Transactions > Transactions

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2. Enter an invoice based on the following header information: Field Value

Source Manual-Other

Date Today

GL Date Today






• Click (ST) Main.

4. Enter Ship To information: Field Value



• Click (B) Line Items.

• Click (ST) Main.

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6. Enter invoice line information based on the following:

Field Value

Num 1

Description Test XX

UOM Ea

Quantity 1

Unit Price 1000.00 GBP


• Click (I) Save.


• Click (B) Distributions.


• Drop-down (select) : Accounts for All Lines

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Practice - Create a New Employee

Tasks

Sign on

Field Value

User Name UK

Password welcome

Define an Employee

Field Value

Responsibility UK HRMS Setup Manager

1. Navigate to the Enter and Maintain Screen.

2. Enter the following data:

Field Value

Last Your last name

First Your First name

Gender Choose a Gender

Action Create Employment

Person Type Employee

NI Number Enter a 9 digit number (XXNNNNNNX)

*Note: If you get the error message “This NI number already exists. Continue?” click OK or enter another NI number.

3. Go to tab Personal and enter the Birth Date = Enter a birthday (dd-mmm-yyyy)

4. Save the record

Note: If you get the error message “Potential Duplicate People” select No Match and (B) OK.

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5. Navigate to the Assignment tab and enter the following information:

Field Value

Organization Purchasing

Job Manager

Position Purchasing Manager

Grade MGMT.1

Location HR-London, UK

6. Navigate to the Supervisor tab and enter the name of the Supervisor as Ambrose, Mr. Anthony David.

7. Navigate to the Purchase Order Information tab and enter the below data:

Field Value

Set of Books Vision UK

Default Expense Account 03-360-7459-000-000

8. Save the record.

9. A note appears asking if you want to use the location of the new position. Click (B) Cancel.

10. Close the windows until you are back at the Navigator.

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Solution - Create a New Employee

Tasks

Sign on

Field Value

User Name UK

Password welcome

Define an Employee

Field Value

Responsibility UK HRMS Setup Manager

1. Navigate to the Enter and Maintain Screen.

(N) Oracle Human Resources > People > Enter and Maintain

(B) Click New.

2. Enter the following data:

Field Value

Last Your last name

First Your First name

Gender Choose a Gender

Action Create Employment

Person Type Employee

NI Number Enter a 9 digit number (XXNNNNNNX)

*Note: If you get the error message “This NI number already exists. Continue?” click OK or enter another NI number.

3. Go to the Personal tab and enter the Birth Date = Enter a birthday (dd-mmm-yyyy)

• (T) Personal

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4. Save the record.

Note: If you get the error message “Potential Duplicate People” choose No Match and click (B) OK.

5. Navigate to the Assignment page.

• Click (B) Assignment.

• Enter the following information:

Field Value

Organization Purchasing

Job Manager

Position Purchasing Manager

Grade MGMT.1

Location HR-London, UK

• (B) Yes to accept the default values

6. Navigate to the Supervisor tab and enter the name of the Supervisor as Ambrose, Mr. Anthony David.

• Click (T) Supervisor.

7. Navigate to the Purchase Order Information tab and enter the following data:

• Click (T) Purchase Order Information. Field Value

Ledger Vision UK

Default Expense Account 03-360-7459-000-000

8. Save the record.

9. A note appears asking if you want to use the location of the new position.

• Click (B) Cancel.

10. Close the windows until you are back at the Navigator.

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Practice - Create a New User

Overview

In this practice, you will create a new user.

Assumptions

• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training or test the instance at your site on which you complete this practice.

Tasks

Sign on Field Value

User Name UK

Password welcome

Responsibility System Administrator

1. Navigate to the Define User window.

2. Enter your user information: Field Value

User Name XXUSER

Password welcome (tab, re-enter to verify)

Person The employee you created in the first practice

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3. Enter the responsibilities for this user:

Responsibility Security Group

System Administrator Standard

General Ledger Vision UK Standard

Receivables Vision UK Standard

Payables Vision UK Standard

Tax Managers Vision UK Standard

Legal Entity Manager Standard

Purchasing Vision UK Standard

Trading Community Manager Standard

4. Sign on as your new user.

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Solution - Create a New User

Tasks

Sign on Field Value

User Name UK

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 Value

User Name XXUSER

Password welcome (tab, re-enter to verify)

Person The employee you created in the first practice

Add Responsibilities

3. Add the following responsibilities to your new username:

Responsibility Security Group

System Administrator Standard

General Ledger Vision UK Standard

Receivables Vision UK Standard

Payables Vision UK Standard

Tax Managers Vision UK Standard

Legal Entity Manager Standard

Purchasing Vision UK Standard

Trading Community Manager Standard

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• Click (I) Save.

• Close Form.

Login as New User

4. Exit Oracle Applications.

• (L) Log out.

5. Log back into the system with your newly created User ID and password.

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Practice - Set Yourself Up As a Buyer

Tasks

Sign on

Field Value

User Name XXUSER

Password welcome Note. Use the password you created.

Responsibility Purchasing, Vision UK

1. Navigate to the Buyer definition window.

2. Click the add buyer tab.

3. Search for your employee name.

4. Select your employee record.

5. Save and close windows until you are back at the Navigator.

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Solution - Set Yourself Up As a Buyer

Tasks

Sign on

Field Value

User Name XXUSER


Responsibility Purchasing, Vision UK

1. Navigate to the Buyer definition window.

• (N) Setup > Personnel > Buyers

2. To Add a Buyer

• Click (H) Add Buyer.

3. Search for your employee name.

• Click (I) Search.

4. Select your employee record.

• Click (I) Quick Select your employee.

• Click (B) Save.

5. Close windows until you are back at the Navigator.

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Practice - View the Legal Entity Setup

Overview

The following steps walk you through the setup of the legal entities for our company in order to determine what taxes would be applicable for those legal entities.

Tasks

1. Using the Legal Entity Managers responsibility, navigate to (T) Legal Entities.

2. In the Legal Entities Search page, enter the following:

Field Value

Country United Kingdom

3. Click the (B) Go.

4. Select the Vision Industries Legal Entity and click the (I) View Details.

5. In the Legal Entities Detail page, select the (T) Registrations.

Note: The Registration for UK Income Tax is associated with the Legal Entity. This is saying that we are registered for Company Tax law in this country.

6. Go to the Establishments tab and click view details next to the Main Establishment record.

7. Click the (T) Registrations.

Note: There are two registrations at the Establishment level: one for Income tax and the other for the GB-Tax Regime. The GB- Tax Regime is for Transactional Taxes.

8. Close the window.

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Solution - View the Legal Entity Setup

Tasks

1. Using the Legal Entity Managers responsibility, navigate to (T) Legal Entities.

2. In the Legal Entities Search page, enter the following:

Field Value


3. Click (B) Go.

4. Select the following: Name = Vision Industries Legal Type = Legal Entity Click (I) View Details.

5. In the Legal Entities Detail page, select the (T) Registrations.

Note: The Registrations for UK Income Tax are associated with the Legal Entity. This is saying that we are registered for the Company Tax law in this country.

6. Click the (T) Establishments.

Note: There are two registrations at the Establishment level: one for Income tax and the other for the GB-Tax Regime. The GB-Tax Regime is for Transactional Taxes.

7. Click (I) View Details next to the Main Establishment record.

8. Click the (T) Registrations.

9. Click (H) Close Window.

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Practice - View the Tax Authority

Overview

The following steps walk you through the setup of the Tax Authority for our country.

Tasks

1. Using the Legal Entity Managers responsibility, navigate to (T) Setup (H) Legal Authority.

2. In the Legal Authority Search page, enter the following:

Field Value


3. Click the (I) View Details next to GB HM Revenue and Customs.

Note that it has a Legislative Category of Transaction Tax.

4. Switch the Responsibility to Tax Managers Vision UK.

5. Navigate to the Party Tax Profiles page.

6. In the Party Tax Profiles search screen, change the Party Type to Tax Authority.

7. In the Party Name, enter GB.

8. Select the (I) Update Tax Profile.

Note: The Tax Authority is identified as a Collecting Authority and a Reporting Authority.


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Solution - View the Tax Authority

Tasks

1. Using the Legal Entity Managers responsibility, do the following:

• Click (T) Setup.

• Click (H) Legal Authorities.

2. In the Legal Authorities Search page, enter the following:

Field Value


3. Click (B) Go.

4. Click (I) View Details (next to GB HM Revenue and Customs).

Note that it has a Legislative Category of Transaction Tax.


6. Switch the Responsibility to Tax Managers Vision UK.

7. Navigate to the Party Tax Profiles page

• (N) Parties>Party Tax Profiles

8. In the Party Tax Profiles search screen, change Party Type (drop-down) to Tax Authority

9. In the Party Name, enter GB.

10. Click (B) Go.

11. Select the (I) Update Tax Profile.

Note: The Tax Authority is identified as a Collecting Authority and a Reporting Authority.


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Practice - Create a Regime to Rate Tax Model

Overview

In this practice, you will create a new tax configuration using the regime to rate flow.

Note. These practices are for illustrative purposes and may not represent your true tax model. For example:

• The recommended setup for US sales tax is to create three different taxes within the one regime to define state, county, and city taxes. You would create multiple jurisdictions for each tax to cover the states, counties, and cities that you need.

• The tax rates may not represent actual tax rates.

Note: The date assigned by the instructor cannot be later than the current date. This assigned date will be used by the student throughout the practices.

Assumptions

• Replace XX with your terminal number.

• You must have access to an Oracle Application Vision database or comparable training or test the instance at your site on which you complete this practice.

Tasks

Sign on Field Value

User Name XXUSER


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Create a New Tax Regime

1. Sign on to the applications as XX USER/Your Password.

2. Select the Tax Managers Vision UK responsibility. If the responsibility does not appear in the list of values, inform your instructor.

3. Navigate to the Create Tax Regime page.

4. Enter a new tax regime based on the following information:

Field Value

Tax Regime Code XX VAT REGIME

Name XX RECOVERABLE VAT REGIME

Regime Level Country (defaults)

Country Name United Kingdom

Effective From Date 01-JAN-1950

Effective To Date Blank

5. In the Controls and Defaults region, enter tax regime controls:

Field Value

Allow Tax Recovery Checked

Allow Override and Entry of Inclusive Tax Lines

Checked

Allow Tax Exemptions Checked

Allow Tax Exceptions Checked

6. Enter tax regime defaults:

Field Value

Tax Currency GBP

Minimum Accountable Unit 0.01

Rounding Rule Nearest

Tax Precision 2 (defaults)

Reporting Tax Authority GB HM Revenue and Customs

Collecting Tax Authority GB HM Revenue and Customs

Default Recovery Settlement Immediate

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7. In the Create Tax Regime: Configuration options page, enter the following:

Field Value

Party Name Vision Industries Note: Select both the First Party Legal Entity and the Operating Unit owning Tax Content party types.

Configuration for Taxes and Rules Common Configuration

Configuration for Product Exceptions Common Configuration


Effective To Blank

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Create a Tax

1. Navigate to the Create Taxes page.

2. In the Create Tax page, enter the following information:

Field Value


Configuration Owner Global Configuration Owner

Tax Source Create a new tax (defaults)

Tax XX VAT

Tax Name XX VAT

Tax Type VAT

Effective From 01-JAN-1950 (defaults)

Effective To Blank

Geography Type COUNTRY

Parent Geography Type COUNTRY

Parent Geography Name United Kingdom

3. In the Controls and Defaults region, enter the tax controls:

Field Value



Tax Exemptions Creation Method Create Tax Exemptions (defaults)

Allow Tax Recovery Checked (defaults)

Primary Recovery Type STANDARD

Allow Tax Rate Rules Unchecked


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Create a Tax Status

1. Navigate to the Create Tax Status page.

2. In the Create Tax Status page, enter the following information.

Field Value



Tax XX VAT

Tax Status Code XX STANDARD

Name XX Recoverable VAT Standard Status

Effective From Date 01-JAN-1950 (defaults)


Set as Default Tax Status Yes

Default Status Effective From 01-JAN-1950

Default Status Effective To Blank

Allow Tax Exemptions Checked (defaults)

Allow Tax Exceptions Checked (defaults)

Default Recovery Settlement Immediate (defaults)

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Create a Tax Rate

1. Navigate to the Tax Rates page.

2. In the Create Tax rate page, enter the following information to create a new tax: Field Value



Tax XX VAT


Tax Jurisdiction Blank

Tax Rate Code XX STD RATE

Rate Type Percentage (defaults)

Percentage Rate 17.5


Effective To Blank

3. Navigate to the Rate Details page:

4. Enter tax rate details: Field Value

Tax Rate Name XX Recoverable Standard Rate

Set as Default Rate Checked

Default Effective From 01-JAN-1950

Default Effective To Blank

Allow Tax Exceptions Checked (default)

Allow Tax Exemptions Checked (default)

5. Create Tax Accounts.

6. In the Create Tax Accounts page, enter Vision Industries in the Operating Unit field.

7. Enter the following default accounts in the Create Tax Accounts screen:

Field Value

Tax Recoverable/Liability 03-000-2360-000-000

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Create a Tax Jurisdiction

1. Navigate to the Create Tax Jurisdictions page.

2. Create a new tax jurisdiction based on the following information:

Field Value

Tax Jurisdiction Code XX VAT JURISIDICTION

Tax Jurisdiction Name XX VAT Jurisdiction


Tax XX VAT

Geography Type COUNTRY (pick from list!!!!)



Geography Name United Kingdom

Precedence Level 300 (defaults)

Set as Default Tax Jurisdiction

Checked



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Create Recovery Rates and Associated Accounts

1. Navigate to the Recovery Rates Page.

2. In the Create Tax Recovery Rate screen, enter the following:

Field Value



Tax XX VAT

Tax Recovery Rate Code XX 100 PERCENT

Recovery Type Standard (defaults)

Percentage Recovery Rate 100

Effective From 01-Jan-1950

Effective to Blank

Set as Default Rate Yes



3. Click the (I) Tax Accounts for the 100 percent recovery rate row.

4. In the Tax Accounts screen, enter Vision UK in the Ledger field and click (B) Create.

5. In the Create Tax Accounts screen, enter Vision Industries in the Operating Unit field.

6. Enter 03-000-1320-000-000 in the Tax Recoverable/Liability field.

7. Verify that you receive the following confirmation, “The Tax Recovery Rate has been successfully created.”

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Enter Tax Rule Defaults

1. Navigate to the Tax Rules Page.

2. Find the Tax Regime you have just created.

Field Value



Tax XX VAT

3. In the Tax Rules screen, do the following:

• Determine Place of Supply (I) Set Default

Field Value

Rule Type Default Ship To

• Determine Tax Applicability (I) Set Default

Field Value

Rule Type Default Applicable

• Determine Tax Registration (I) Set Default

Field Value

Rule Type Default Bill From Party

• Determine Tax Status

Field Value

Rule Type Default XX STANDARD

Note: You do not have to set a default value for the Tax Status step because when you created the XX UK STD tax status, you specified that it was to be used as the default for tax rules.

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• Determine Tax Rate

Field Value

Rule Type Default XX STD RATE

Note: You do not have to set a default value for the Determine Tax Rate step because when you created the XX UK STD RATE tax rate, you specified that it was to be used as the default for tax rules.

• Determine Taxable Basis (I) Set Default

Field Value

Rule Type Default STANDARD_TB

• Calculate Tax Amounts (I) Set Default

Field Value

Rule Type Default STANDARD_TC

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Make Tax Available for Transactions and Specify the Recovery Rate Code

1. Navigate to the Tax Accounts page from the Taxes page:

2. Search for the Tax you just created.

Field Value



Tax XX VAT

3. Select to Show Controls and Defaults.

Field Value

Default Primary Recovery Rate Code XX 100 PERCENT

4. Scroll back up to make the tax available for transactions:

Field Value

Make Tax Available for Transactions Select

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Test Your New Tax by Entering an Invoice in Payables

1. Using the Payables Vision UK responsibility, navigate to the Invoices form.

2. Enter a standard invoice based on the following header information:

Field Value



Invoice Date Today

Invoice Number XXRECTEST1

Currency GBP

Amount 1175.00




Field Value

Line 1 (defaults)

Type Item (defaults)

Amount 1000.00


Description Test XX

GL Date Instructor assigned (defaults)

Ship To HR- London, UK (defaults)


7. Calculate Tax for your Invoice.

8. Verify that you see a tax line for your XX VAT for 175.00 – the Rate at 17.5 percent.

9. Place your cursor on the tax line for your XX VAT REGIME tax.

10. Click the (B) Tax Details.

11. Verify that you see the following information for your tax in the tax lines summary screen:

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Field Value

Tax Regime Code: XX VAT REGIME

Tax: XX VAT

Jurisdiction XX VAT JURISIDICTION

Tax Status XX STANDARD

Rate Name XX STD RATE

Rate 17.500

Tax Amount 175.00

12. Close the Tax Line Summary screen by clicking (B) Cancel.

13. If necessary, change the invoice total to match the sum of the distributions, including all calculated taxes.

14. Validate the invoice.

15. Create Accounting.

16. Verify that you receive the message that accounting was successfully created for your invoice.

17. View Accounting.

Account GL Date Accounting Class

Accounted DR

Accounted CR

03-000-7459-000-000 Current Date Item Expense 1000.00

03-000-2700-000-000 Current Date Liability 1000.00

03-000-1320-000-000 Current Date Recoverable Tax

175.00


18. Verify that the debit line for recoverable tax is a debit to account 03-000-1320-000-000, which is the account you defined as the default for the XX 100 PERCENT tax recovery rate.

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Enter an Invoice in Receivables

1. Switch responsibilities to Receivables Vision UK.


3. Enter an invoice based on the following header information:

Field Value

Source Manual-Other

Date Current Date (default)

GL Date Current Date (default)






5. Enter Ship To information:

Field Value


Location Reading

6. Navigate to the Main region of the Line Items page.


Field Value

Num 1

Description Test XX

UOM Ea

Quantity 1

Unit Price 1000.00


9. Navigate to the Detail Tax Lines window.

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10. Verify that you see the following tax information for your invoice:

Field Value


Tax XX VAT



Rate 17.500

Tax Amount 175.00

11. Click (B) Cancel to close the Detail Tax Lines screen.

12. Close the Lines screen.

13. Change the invoice status to Complete.

Note: It may be necessary to correct the revenue account in order to complete the invoice.

14. Generate the accounting for the Receivables invoice.

15. View the accounting.

16. 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 your transaction.)


Accounted DR

Accounted CR

03-000-1210-000-000 Your date Receivable 1175.00

03-805-4150-000-000 Your date Revenue 1000.00

03-000-2360-000-000 Your date Tax 175.00

Note: Amounts may vary depending upon what other taxes are calculated on your invoice.

Note: You can override the tax calculation and enter manual tax lines on invoices if you selected the Allow Override for Calculated Tax Lines and Allow Manual Entry of Tax Lines options at the Tax level.

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Solution - Create a Regime to Rate the Tax Model

1. Sign on to applications as XX USER/Your Password.

2. Select the Tax Managers Vision UK responsibility. If the responsibility does not appear in the list of values, inform your instructor.

3. Navigate to the Create Tax Regime page.

• (N) Tax Configuration Tax Regimes

• Click (B) Create.

4. Enter a new tax regime based on the following information:

Field Value


Name XX RECOVERABLE VAT REGIME

Regime Level Country (defaults)




5. Click (H) + Show Controls and Defaults to expand the Controls and Defaults region.

6. In the Controls and Defaults region, enter tax regime controls:

Field Value

Allow Tax Recovery Checked


Checked



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7. Enter tax regime defaults:

Field Value

Tax Currency GBP



Tax Precision 2 (defaults)

Reporting Tax Authority GB HM Revenue and Customs

Collecting Tax Authority GB HM Revenue and Customs


• Click (B) Continue.

8. In the Create Tax Regime: Configuration options page, enter the following:

Field Value

Party Name Vision Industries Note: Select both the First Party Legal Entity and the Operating Unit owning Tax Content party types.


Configuration for Product Exceptions Common Configuration


Effective To Blank

9. Click (B) Finish.

10. Verify that you receive the following confirmation, “The tax regime was successfully created.”

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Create a Tax


• (T) Tax Configuration (ST) Taxes

• Click the (B) Create.


Field Value




Tax XX VAT

Tax Name XX VAT

Tax Type VAT


Effective To Blank




3. Click the (H) + Show Controls and Defaults.


Field Value



Tax Exemptions Creation Method Create Tax Exemptions (defaults)



Allow Tax Rate Rules Unchecked


5. Click (B) Apply in the Create Tax page and verify that you receive the following confirmation, “The Tax has been successfully created.”

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Create a Tax Status


• (T) Tax Configuration (ST) Tax Statuses



Field Value



Tax XX VAT


Name XX Recoverable VAT Standard Status








Default Recovery Settlement Immediate (defaults)

3. Click (B) Apply.

4. Verify that you receive the following confirmation, “The tax status was successfully created.”

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Create a Tax Rate


• (T) Tax Configuration (ST) Tax Rates





Tax XX VAT







Effective To Blank


• Click (I) Rate Details

4. Enter the tax rate details: Field Value

Tax Rate Name XX Recoverable Standard Rate




Allow Tax Exceptions Checked (default)

Allow Tax Exemptions Checked (default)

5. Click (B) Apply.

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6. Create the Tax Accounts.

• Click (B) Tax Accounts.

• Enter Vision UK in the ledger field.




Field Value


9. To return to the Tax Accounts page:

• Click (B) Apply in the Create Tax Accounts page.

10. To return to the Create Tax page:

• Click (B) Apply in the Tax Accounts page.

11. To return to the Create Tax Rate page:

• Click (B) Apply in the Tax Rate Details page.

12. Verify that you receive the following confirmation, “The Tax Rate has been successfully created.”

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1. Navigate to the Create Tax Jurisdictions page.

• (T) Tax Configuration (ST) Tax Jurisdictions


2. Create a new tax jurisdiction based on the following information:

Field Value

Tax Jurisdiction Code XX VAT JURISIDICTION

Tax Jurisdiction Name XX VAT Jurisdiction


Tax XX VAT

Geography Type COUNTRY (pick from list!!!!)



Geography Name United Kingdom

Precedence Level 300 (defaults)

Set as Default Tax Jurisdiction

Checked



3. Click (B) Apply to return to the Tax Jurisdictions page.

4. Verify that you receive the following confirmation, “The tax jurisdiction was successfully created.”

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Create Recovery Rates and Associated Accounts


• (T) Tax Configuration (ST) Tax Recovery Rates



Field Value



Tax XX VAT





Effective to Blank




3. Click (I) Tax Accounts for the 100 percent recovery rate row.




7. Click (B) Apply in the Create Tax Accounts page to return to the Tax Accounts page.

8. Click (B) Apply in the Tax Accounts page to return to the Create Tax Recovery Rate page.

9. Click (B) Apply in the Create Tax Recovery Rate page to return to the Tax Recovery Rates page.


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Enter Tax Rule Defaults

1. Navigate to the Tax Rules Page.

• (T) Tax Configuration (ST) Tax Rules

2. Find the Tax Regime you have just created.

Field Value



Tax XX VAT

• Click (B) Go.

3. In the Tax Rules screen, do the following:

• Determine Place of Supply (I) Set Default

Field Value

Rule Type Default Ship To

• Click (B) Apply.

• Determine Tax Applicability (I) Set Default

Field Value

Rule Type Default Applicable

• Click the (B) Apply.

• Determine Tax Registration (I) Set Default

Field Value

Rule Type Default Bill From Party


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• Determine Tax Status

Field Value

Rule Type Default XX STANDARD

Note: You do not have to set a default value for the Tax Status step because when you created the XX UK STD tax status you specified that it was to be used as the default for tax rules.

• Determine Tax Rate

Field Value

Rule Type Default XX STD RATE

Note: You do not have to set a default value for the Determine Tax Rate step because when you created the XX UK STD RATE tax rate, you specified that it was to be used as the default for tax rules.

• Determine Taxable Basis (I) Set Default

Field Value

Rule Type Default STANDARD_TB


• Calculate Tax Amounts (I) Set Default

Field Value

Rule Type Default STANDARD_TC


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Make Tax Available for Transactions and Specify the Recovery Rate Code



2. Search for the Tax you just created

Field Value



Tax XX VAT

• Click (B) Go.

• Click (I) Update.


Field Value

Default Primary Recovery Rate Code XX 100 PERCENT


Field Value


• Click (B) Apply (Displays warning – Warning: This tax does not have an exchange rate type. Are you sure you want to enable this tax?)

• Click (B) Yes.

5. Verify that you receive the following confirmation, “The tax was successfully updated.”

6. Click (H) Close Window to return to the Navigator.

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Test Your New Tax by Entering an Invoice in Payables


• (N) Invoices: Entry Invoices


Field Value



Invoice Date Today

Invoice Number XXRECTEST1

Currency GBP

Amount 1175.00



• (ST) 2 Lines


Field Value

Line 1 (defaults)


Amount 1000.00


Description Test XX

GL Date Instructor assigned (defaults)

Ship To HR- London, UK (defaults)


• Click (I) Save.

7. Calculate Tax for your Invoice.

• Click (B) Calculate Tax.

8. Verify that you see a tax line for your XX VAT for 175.00 – the Rate at 17.5 percent.

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9. Place your cursor on the tax line for your XX VAT REGIME tax.

10. Click (B) Tax Details.

11. Verify that you see the following information for your tax in the tax lines summary screen:

Field Value


Tax: XX VAT

Jurisdiction XX VAT JURISIDICTION



Rate 17.500

Tax Amount 175.00

12. To close the Tax Line Summary screen, click (B) Cancel.

13. If necessary, change the invoice total to match the sum of the distributions, including all calculated taxes.

14. In the Invoice workbench screen, to validate the invoice, click (B) Actions.

15. In the Invoice Actions screen, − Validate the check box is ‘ticked.’ − Click (B) OK.

16. Verify the invoice status changes to ‘validated.’

17. Click (B) Actions.

• Check Create Accounting.

• Select the Final Post button.

• Click (B) OK.

18. Verify that you receive the message that accounting was successfully created for your invoice.

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19. To view the accounting generated for your invoice and the recoverable tax, click (M) Reports View Accounting.


Accounted DR

Accounted CR

03-000-7459-000-000 Current Date Item Expense 1000.00


03-000-1320-000-000 Current Date Recoverable Tax

175.00


20. Verify that the debit line for recoverable tax is a debit to account 03-000-1320-000-000, which is the account you defined as the default for the XX 100 PERCENT tax recovery rate.

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Enter an Invoice in Receivables

1. Switch responsibilities to Receivables Vision UK.


• (N) Transactions Transactions


Field Value

Source Manual-Other








• (ST) Main


Field Value


Location Reading



• (ST) Main

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Field Value

Num 1

Description Test XX

UOM Ea

Quantity 1

Unit Price 1000.00


• Click (I) Save.


• Click (B) Tax.


Field Value


Tax XX VAT



Rate 17.500

Tax Amount 175.00

11. To close the Detail Tax Lines screen, click (B) Cancel.

12. Close the Lines screen to return to Main Page.

13. Click (B) Complete.



• Select (M) Tools Create Accounting.

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15. In the Create Accounting window, do the following:

• 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) OK to acknowledge the message.


• Select (M) Tools View Accounting.

18. In the Subledger Journal Entries window, do the following:

• Verify that you see the following at a minimum (additional lines may have been created depending on the taxes applied to your transaction)


Accounted DR

Accounted CR



03-000-2360-000-000 Your date Tax 175.00



19. Click (H) Close Window to return to the Transactions form.

20. Close the Transactions form to return to the Navigator.

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Practice - Run a Tax Register Report

Use the Tax Register report to review your tax liability. The report groups total tax amounts by tax type, tax class, and company. The report includes deferred tax accounting information and all transactions for which tax accounting is defined. You can define tax accounting for adjustments, discounts, finance charges, and miscellaneous receipts.

1. Switch responsibilities to Tax Managers Vision UK.

2. Navigate to the submit requests form.

3. Run the Tax Register Report and enter the following information as parameters to run the report:

Parameter Value

Reporting Level Legal Entity (defaults)

Reporting Context Vision Industries

Register Type Tax Register (defaults)

Order By Tax Register Transaction Number (defaults)

Summarization Show All Detail (defaults)


Tax XX VAT

Accounting Status Both Unaccounted and Accounted

Show Functional Amounts Yes

Include Invoices Yes

4. Monitor the status of the request via (M) View Requests.

5. View the Output.

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Solution - Run a Tax Register Report

Use the Tax Register report to review your tax liability. The report groups total tax amounts by tax type, tax class, and company. The report includes deferred tax accounting information and all transactions for which tax accounting is defined. You can define tax accounting for adjustments, discounts, finance charges, and miscellaneous receipts.


2. Navigate to Requests Other Requests Run.

3. Select Single Request in the Submit a New Request window and click (B) OK.

4. Select the Tax Register report in the Submit Request window.

5. Enter the following information as parameters to run the report:

Parameter Value

Reporting Level Legal Entity (defaults)

Reporting Context Vision Industries

Register Type Tax Register (defaults)

Order By Tax Register Transaction Number (defaults)

Summarization Show All Detail (defaults)


Tax XX VAT

(Scroll down page) Accounting Status

Both Unaccounted and Accounted

Show Functional Amounts Yes

Include Invoices Yes (default)

6. Click (B) OK to accept report parameters.

7. Click (B) Submit to submit the request.

• Click (B) No to close the Submit Request form.


• Click (B) Find to find all of your submitted concurrent requests.

• Place your cursor on the row of your recently submitted concurrent request.

• Click (B) View Output to view the output file.

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Practice - Run the Tax Audit Trail Report

Use the Tax Audit Trail report to review tax information for posted or partially posted invoices. This report provides detailed tax and invoice information and the total amounts for each tax rate code in the invoice currency and functional currency. The report lists, for each tax rate code, the distributions of all posted or partially posted invoices. The report includes, for each invoice, both the tax amount and the invoice amount subject to tax.

Responsibility: Tax Manager Vision UK

1. Navigate to Requests.

2. Select the Tax audit trail report in the Submit Request window.


Parameter Value

Reporting Level: Legal Entity (defaults)

Reporting Context: Vision Industries


Tax: XX VAT

Report Order By: Invoice

Include Standard Invoices: Yes (defaults)

4. View the Output.

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Solution - Run the Tax Audit Trail Report

Use the Tax Audit Trail report to review tax information for posted or partially posted invoices. This report provides detailed tax and invoice information and the total amounts for each tax rate code in the invoice currency and functional currency. The report lists, for each tax rate code, the distributions of all posted or partially posted invoices. The report includes, for each invoice, both the tax amount and the invoice amount subject to tax.

Responsibility: Tax Manager Vision UK



3. Select the Tax audit trail report in the Submit Request window.


Parameter Value




Tax: XX VAT

Report Order By: Invoice

Include Standard Invoices: Yes (defaults)

5. Click (B) OK to accept parameters.







8. Close the Requests form.

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Practice - Run the Tax Reconciliation Report

Use the Tax Reconciliation Report to prepare the Output Tax portion of your periodic tax returns. This report lists the taxable and tax amounts, by tax account, of all Receivables transactions for a given period to enable you to identify and review your tax liability for various tax rate codes. The Tax Account Low/High parameters let you select tax liability accounts from your General Ledger.

The report also provides you with all of the transaction detail from the Receivables subledger to help you reconcile the Output Tax portion of your tax returns to the General Ledger.

Responsibility = Tax Manager Vision UK

1. Navigate to Requests.

2. Select the Tax Reconciliation Report in the Submit Request window.


Parameter Value



Transaction Date Low: 1st of current month

Transaction Date High: Last day of current month

Accounting Status: Both Accounted and Unaccounted

Detail Level Show Summary and All Detail

4. View the output.

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Solution - Run the Tax Reconciliation Report

Use the Tax Reconciliation Report to prepare the Output Tax portion of your periodic tax returns. This report lists the taxable and tax amounts, by tax account, of all Receivables transactions for a given period to enable you to identify and review your tax liability for various tax rate codes. The Tax Account Low/High parameters let you select tax liability accounts from your General Ledger.

The report also provides you with all of the transaction detail from the Receivables subledger to help you reconcile the Output Tax portion of your tax returns to the General Ledger.

Responsibility = Tax Manager Vision UK



3. Select the Tax Reconciliation Report in the Submit Request window.

4. Enter the following information as parameters to run the report: Parameter Value



Transaction Date Low: 1st of current month

Transaction Date High: Last day of current month

Accounting Status: Both Accounted and Unaccounted

Detail Level Show Summary and All Detail (default)

5. Click (B) OK to accept parameters.







8. Close the Requests form.

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Practice - Create Tax Zones

Overview

In this practice, you create a tax zone type and a tax zone for a European Economic Community (EU) tax zone.

Assumptions

• Replace XX with your terminal number.

You must have access to an Oracle Application Vision database or comparable training or test the instance at the site on which you complete this practice.

Tasks

In this practice you will create a Tax Zone for the countries in the EU.

Sign on Field UK VAT

User Name XXUSER

Password welcome Note: Use the password you created.

Responsibility Tax Managers Vision UK

Creating a Tax Zone Type

1. Navigate to the Tax Zone Types page.

2. Create a tax zone type based on the following information: Field Value

Tax Zone Type XX EU TAX ZONE

Country Blank

Zone Creation Allowed Yes

Creating a Tax Zone

3. Navigate to the Tax Zone page.

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4. Create a tax zone based on the following information: Field Value

Tax Zone XX EEC

Code XX EEC

Code Type Tax Geography Code

Start Date 01-JAN-1974

End Date Blank

Time Zone CET

5. Add the following countries to the tax zone:

• Austria

• Belgium

• France

• United Kingdom

6. Change the dates to 01-Jan-1974.

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Solution - Create Tax Zones

Tasks

In this practice you create a Tax Zone for the countries in the EU.

Sign on Field UK VAT

User Name XXUSER



Creating a Tax Zone Type

1. Navigate to the Tax Zone Types page.

• (N) Advanced Setup Options > Tax Zone Types

• Click (B) Create Tax Zone Type.

2. Create a tax zone type based on the following information: Field Value

Tax Zone Type XX EU TAX ZONE

Country Blank

Zone Creation Allowed Yes

• (B) Apply (The system returns you to the Tax Zone Types search page.)

Creating a Tax Zone

3. Navigate to the Tax Zone page.

• Enter Your Tax Zone Type, and then click (B) Go.

• In the line with XX EU TAX ZONE, click (I) View Existing Zones.

• Click (B) Create Tax Zone.

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4. Page Section: General Information Create a tax zone based on the following information:

Field Value

Name (of Tax Zone) XX EEC

Code XX EEC

Code Type Tax Geography Code

Start Date 01-JAN-1974

End Date Blank

Time Zone CET

5. Page Section: Geographies, Select countries to add to the tax zone: Field Value

Add All

6. Click (B) Go. Field Value

Country Name Austria

7. (I) Quick Select (Austria is added.)

Field Value

Add All

8. (B) Go Field Value

Country Name Belgium

9. (I) Quick Select (Belgium is added.)

Field Value

Add All


Country Name France

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11. (I) Quick Select (France is added.)

Field Value

Add All


Country Name Germany

13. (I) Quick Select (Germany is added.) Field Value

Add All



15. (I) Quick Select (United Kingdom is added.)

16. Change the Start dates to 01-Jan-1974.

17. Click (B) Apply.

18. Verify that you receive the following confirmation “This Tax Zone has been created: XXEEC.”

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Practice - Create a Determining Factor Set

Overview In this exercise, you modify tax rules so that if the Ship To is not the UK, it will use the Bill From as the Place of Supply for VAT. This means that VAT will be calculated on everything in AR and AP for our examples. We can then change the Status of the tax as necessary using further rules.

To accomplish this you must do the following:

1. Create a determining factor set. A determining factor set is simply a list of things to be considered in a tax rule to determine (in this case) the Place of Supply for our VAT. In our case, the determining factor set will consist of the Ship To country.

2. Create a condition set. A condition set provides values for each of the determining factors to provide conditions to be evaluated to determine (in this case) the Place of Supply. In our case, the condition set will specify the condition that the Ship To Country is not United Kingdom.

3. Modify the tax determination steps to add a rule for the Determine Place of Supply step that utilizes your condition to make the Place of Supply equal to the Bill From location if the Ship To is not the UK. You can use Expert Rule entry since you have already created the determining factor set and the condition set.

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Create a Determining Factor Set

1. Responsibility = Tax Managers Vision UK

2. Navigate to the Tax Determining Factor Setup page:


Field Value

Tax Determining Factor Set XX PLACE OF SUPPLY

Name XX PLACE OF SUPPLY

Set Usage Tax Rules (defaults)

Ledger Vision UK

Regime Code XX VAT REGIME

Determining Factor Class Geography

Class Qualifier Ship to

Determining Factor Name Country

3. Verify that you receive the following confirmation, “The tax determining factor set was successfully created.”

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Create a Condition Set

1. Navigate to the Condition Set Page.

Enter the following information:

Field Value

Tax Condition Set XX PLACE OF SUPPLY


Determining Factor Set XX PLACE OF SUPPLY

2. In the Create Tax conditions window, enter the following:

Field Value

Ship To – Operator Not Equal To

Ship To – Value/From Range United Kingdom

3. Verify that you receive the following confirmation, “The tax condition set was successfully created.”

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Modify the Tax Determination Steps to Use a Rule Using Your Condition Set

1. Navigate to the Rules Page.

2. In the Tax Rules search region, enter the following:

Field Value



Tax XX VAT

3. Navigate to the Expert Rule Entry for the Determine Place of Supply Rule Type.

4. In the Create Tax Rule: General Information page, enter the following:

Field Value

Rule Code XX Place of Supply Rule

Rule Name XX Place of Supply Rule

Effective From 01-JAN-1950

Effective To Leave blank

Determining Factor Set Code

XX PLACE OF SUPPLY

5. In the Create Tax Rule: Rule Conditions page, enter the following:

Field Value

Condition Set Code XX PLACE OF SUPPLY

Name XX PLACE OF SUPPLY (defaults)

Order 1

Result Bill From

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6. In the Create Tax Rule: Rule Order page, enter the following:

Field Value

Enable YES!!!! CHECK THIS BOX!!

Rule Order 1

7. Verify that you receive the following confirmation, “The tax rule was successfully created.”

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Test Your Tax Setup by Entering an Invoice in Receivables


Field Value

Source Manual-Other








3. Enter Ship To and Bill To information:

Field Value


Location Paris

Bill To Business World

Location Paris



Field Value

Num 1

Description Test XX

UOM Ea

Quantity 1

Unit Price 1000.00



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Field Value


Tax XX VAT



Rate 17.500

Tax Amount 175.00

9. Click Cancel to close the Detail Tax Lines screen.









Accounted DR

Accounted CR



03-000-2360-000-000 Your date Tax 175.00



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Solution - Create a Determining Factor Set

Overview In this exercise, you will modify tax rules so that if the Ship To is not the UK it will use the Bill From as the Place of Supply for VAT. This means that VAT will be calculated on everything in AR and AP for our examples. We can then change the Status of the tax as necessary using further rules.

To accomplish this, you must do the following:

1. Create a determining factor set. A determining factor set is simply a list of things to be considered in a tax rule to determine (in this case) the Place of Supply for our VAT. In our case, the determining factor set will consist of Ship To country.

2. Create a condition set. A condition set provides values for each of the determining factors to provide conditions to be evaluated to determine (in this case) the Place of Supply. In our case, the condition set will specify the condition that the Ship To Country is not United Kingdom.

3. Modify the tax determination steps to add a rule for the Determine Place of Supply step that utilizes your condition to make the Place of Supply equal to the Bill From location if the Ship To is not the UK. You can use Expert Rule entry since you have already created the determining factor set and the condition set.

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• (N) Advanced Setup Options Tax Determining Factor Sets



Field Value

Tax Determining Factor Set XX PLACE OF SUPPLY



Ledger Vision UK


Determining Factor Class Geography

Class Qualifier Ship to


3. Click (B) Apply.


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• (T) Advanced Setup Options (ST) Tax Condition Sets



Field Value

Tax Condition Set XX PLACE OF SUPPLY


Determining Factor Set XX PLACE OF SUPPLY



Field Value

Ship To – Operator Not Equal To

Ship To – Value/From Range United Kingdom

• Click (B) Finish to return to the Tax Condition Sets page.


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Field Value



Tax XX VAT

• Click (B) Go.

3. Select the (I) Expert Rule Entry for Rule Type: Determine Place of Supply.


Field Value

Rule Code XX Place of Supply Rule

Rule Name XX Place of Supply Rule




XX PLACE OF SUPPLY

• Click (B) Next in the Step 1 of 3 page.


Field Value

Condition Set Code XX PLACE OF SUPPLY

Name XX PLACE OF SUPPLY (defaults)

Order 1 (defaults)

Result Bill From


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Field Value


Rule Order 1

• Click (B) Finish in the Step 3 of 3 page.



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Tasks

Switch Responsibility from Tax Manager Vision UK to Receivable Vision UK



Field Value

Source Manual-Other








• (ST) Main


Field Value


Location Paris

Bill To Business World

Location Paris


• Click the (B) Line Items.

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Field Value

Num 1 (defaults)

Description Test XX

UOM Ea

Quantity 1

Unit Price 1000.00


• Click (I) Save.


• Click (B) Tax.


Field Value


Tax XX VAT



Rate 17.500

Tax Amount 175.00




• Click (B) Complete.

Note: It may be necessary to correct the revenue account in order to complete the invoice. (Do this by clicking (B) Distributions.)



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13. In the Create Accounting window:


• Click (B) OK.




• Select the (M) Tools View Accounting.



Accounted DR

Accounted CR



03-000-2360-000-000 Your date Tax 175.00





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Practice - Create an Intra-EU Rule Example for AP

Overview

In this exercise, you modify tax rules so that your XX VAT in your XX VAT REGIME returns a Tax Status of Intra-EU STD if the following conditions are met and it Self-Assesses the VAT:

− There is an intra-EC movement of goods to the UK. − The goods are received here by a VAT-registered trader. − The supplier is registered for the VAT in the Member State of departure.

In this case, the recipient is required to account for the VAT on the goods acquired in the UK.

Tasks

• Set up a new EU supplier to use in this exercise.

• Create a new XX Intra-EU STD Status and Rate.

• Create a rule that incorporates the preceding conditions.

• Test your rule by entering an invoice to your supplier.

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Create a New Supplier

Responsibility = Payables Vision UK

1. Navigate to the Supplier Setup screen.

2. In the Create Supplier screen, enter the following:

Field Value

Organization XX EU Supplier

3. Navigate to the Supplier Address Screen.

4. Enter the following information in the Create Address: Confirm Details screen to create an address for your supplier:

Field Value

Country France

Address Line 1 1 La Rue Nord

City Paris

Address Name PARIS

5. In the Create Address: Site Creation screen, check the Select check box next to the PARIS site name.

6. Verify that you receive confirmation that your PARIS site has been added to the address book for your XX EU SUPPLIER.

7. In the Uses tab in the Manage Sites screen, check the following and save:

Field Value

Pay Checked

Primary Pay Checked

8. Click Apply (you should be returned to the Update XX EU SUPPLIER: Address book screen).

9. Click the Payment details and Select Check and save.

10. Scroll down to Supplier Sites and click the (I) Update Payment Details.

11. Select Check.

12. Navigate to Tax and Reporting.

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13. Check the Allow Tax Applicability and Set for Self-assessment boxes.

14. Scroll down to the Supplier Sites and click the (I) Update Transaction Tax.

15. Select the Allow Tax Applicability and Set for Self-assessment boxes at this site level also.

16. Close the window to return to the Navigator.

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Verify the Supplier Records Registration Status



3. Search for your supplier by changing the party type to Third Party, entering the supplier name in the Party Name field and clicking (B) Go.

4. Click (I) Update Tax Profile.

5. Click (T) Tax Registration.

6. Click (B) Create in the Tax Registration tab.

7. Enter the following information:

Field Value


Tax Registration Status Registered in EU (non GB)

8. Click (B) Apply to return to the Update Party Tax Profile screen.

9. Click (B) Apply to return to the Party Tax Profile screen.

10. Verify that you receive confirmation that the party tax profile was successfully updated.

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Create an Intra-EU STD Status

1. Navigate to the Create Tax Status page (from the Regime to Rate Flow page).

2. Search for your Tax Regime.

3. Create a new tax status based on the following information:

Field Value

Tax Regime Code XX VAT REGIME (defaults)

Configuration Owner Global Configuration Owner (defaults)

Tax XX VAT (defaults)

Tax Status Code XX INTRA EU STD

Name XX Intra EU STD





Note: The Allow Tax Exceptions and Allow Tax Exemptions fields defaulted to Yes from the setup of the Tax for which you are creating a Tax Status.

4. Apply the tax status setup.

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Create an Intra-EU STD Rate

1. Navigate to the Create Tax Rate page (from the Regime to Rate Flow page).

2. Create a new tax rate based on the following information:

Field Value




Tax Status Code XX INTRA EU STD (defaults)

Tax Jurisdiction Code Blank

Tax Rate Code XX INTRA EU STD RATE




Effective From Leave blank

3. Navigate to the Rate Details page.

4. Enter the tax rate details:

Field Value

Tax Rate Name XX INTRA EU STD VAT Rate



Default Effective To Leave blank



Note: The Allow Tax Exceptions and Allow Tax Exemptions fields defaulted to Yes from the setup of the Tax Regime and Tax for which you are creating a Tax Rate.

5. Create Tax Accounts

• Enter Vision UK in the Ledger field.


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Field Value


8. Click Apply in the Create Tax Accounts page to return to the Tax Accounts page.

9. Click Apply in the Tax Accounts page to return to the Create Tax page.

10. Click Apply in the Tax Rate Details page to return to the Create Tax Rate page.


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2. Navigate to the Tax Determining Factor Setup page.


Field Value

Tax Determining Factor Set XX AP INTRA EU

Name XX AP INTRA EU


Ledger Vision UK


Determining Factor Class Registration

Class Qualifier Bill From Party

Determining Factor Name Registration Status

Enter a 2nd Line: Determining Factor Class

Geography

Class Qualifier Ship From


Enter a 3rd Line: Determining Factor Class

User Defined Geography


Determining Factor Name XX EU TAX ZONE

Enter a 4th Line: Determining Factor Class

Geography

Class Qualifier Ship To



Transaction Input Factor

Class Qualifier Blank

Determining Factor Name Product Type


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1. Navigate to the Condition Set page.


Field Value

Tax Condition Set XX AP INTRA EU

Name XX AP INTRA EU

Determining Factor Set XX AP INTRA EU

2. In the Create Tax conditions window, enter and save the following:

Field Value

User-Defined Geography Ship From – Operator

Equal To

User-Defined Geography Ship From – Value/From Range

XX EEC

Geography Ship From – Operator

Not Equal To

Geography Ship From – Value/From Range

United Kingdom

Registration Registration Status – Operator

Equal To


Registered in EU (Non GB)

Geography Ship To – Operator Equal To

Geography Ship To – Value/From Range

United Kingdom

Transaction Input Factor - Product Type - Operator

Equal To

Transaction Input Factor - Product Type – Value/From Range

GOODS


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1. Navigate to the Rules page.


Field Value



Tax XX VAT

3. Select the Expert Rule Entry for the Determine Tax Status Rule Type.


Field Value

Tax Law Reference XX VAT AP INTRA EU

Description XX VAT AP INTRA EU

Rule Code XX VAT AP INTRA EU

Rule Name XX VAT AP INTRA EU




XX AP INTRA EU

• Click Next in the Step 1 of 3 page.


Field Value

Condition Set Code XX AP INTRA EU

Name XX AP INTRA EU (defaults)

Order 1

Result XX INTRA EU STD


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Field Value


Rule Order 1



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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, the accounting period must be open in Accounts Payable and in General Ledger.

Tasks



Field Value

Operating Unit Vision Industries (defaults)

Type Standard (defaults)

Trading Partner XX EU SUPPLIER

Supplier Site PARIS

Invoice Date Today

Invoice Number XXRULE2

Currency EUR (defaults)

Invoice Amount 1000.00

GL Date Today (defaults)


Note: Do not save!!



Field Value

Line 1 (defaults)


Amount 1000.00


Description XX AP INTRAEU

Product Type GOODS


Ship To (defaults)

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7. Calculate the Tax.

8. Verify that your XX VAT tax is not applied. The tax rule you created and your Supplier setup specified that the Status should be XX INTRA-EU STD and the Tax should be Self-assessed. Verify that your Tax has been created as Self-assessed by clicking the Tax Details button

9. Close the Invoice Workbench, to return to the Navigator.

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Solution - Create an Intra-EU Rule Example for AP

Create a new supplier

Responsibility = Payables Vision UK

1. Navigate to the Supplier Setup screen.

• (N) Suppliers Entry

2. In the Suppliers screen, click (B) Create Supplier.


Field Value

Organization XX EU Supplier

4. Click (B) Apply.

5. In the Suppliers screen, click the (H) Address Book in the side panel.

6. In the Update XX EU SUPPLIER: Address book screen, click (B) Create.


Field Value

Country France

Address Line 1 1 La Rue Nord

City Paris

Address Name PARIS

8. Click (B) Continue (should take you to the Create Address: Site Creation screen).

9. In the Create Address: Site Creation screen, check the Select check box next to the PARIS site name


11. Verify that you receive confirmation that your PARIS site has been added to the address book for your XX EU SUPPLIER.

12. In the Update Supplier Address Book screen, click (I) Manage Sites next to your new PARIS site.

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13. In (T) Uses, check the following:

Field Value

Pay Checked

Primary Pay Checked

14. Click (B) Apply (you should be returned to the Update XX EU SUPPLIER: Address book screen).

15. Click (H) Payment details (on the left side of the page – side panel).

• For the Payment Method, select the Check box.

• Click (B) Save.

• Verify that you receive the confirmation, “The payment methods and attributes have been saved.”

16. Scroll down to Supplier Sites.

• Click (I) Update Payment Details.

• Select Check.

• Click (B) Save.

17. Click (H) Tax and Reporting (on the left side of the page – side panel).

• Select the Allow Tax Applicability and Set for Self-assessment boxes.

• (B) Save


• Select the Allow Tax Applicability and Set for Self-assessment boxes at this site level also.

• (B) Save


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Verify the Supplier Records Registration Status


2. Navigate to the Party Tax Profiles page:

• (N) Parties Party Tax Profiles

3. Search for your supplier by changing the party type to Third Party, entering the supplier name in the Party Name field , XX EU SUPPLIER, and clicking (B) Go.




7. Enter the following to information (ignore other fields):

Field Value






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Create an Intra-EU STD Status

1. Navigate to the Create Tax Status page (from the Regime to Rate Flow page):



• Country Name : United Kingdom

• Tax Regime Code : XX VAT REGIME

3. Click (B) Go.

4. Click (I) Regime to Rate Flow.

• Click (H) Expand All.

• Click (I) Create Tax Status.


Field Value




Tax Status Code XX INTRA EU STD

Name XX Intra EU STD






6. Apply the tax status setup:

• Click (B) Apply to return to the Regime to Rate Flow page.

• Verify that you receive the following confirmation, “The tax status was successfully created.”

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Create an Intra-EU STD Rate

1. Navigate to the Create Tax Rate page (from the Regime to Rate Flow page):


• Click (I) Create Tax Rate (for your Intra-EU STD Status).

(You may prefer to navigate from (T) Tax Configuration > (ST) Tax Rates.)


Field Value




Tax Status Code XX INTRA EU STD (defaults)


Tax Rate Code XX INTRA EU STD RATE





3. Click (B) Apply.


• Click (I) Rate Details.

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5. Enter the tax rate details:

Field Value

Tax Rate Name XX INTRA EU STD VAT Rate

In Section: Other Details (at bottom of page). Set as Default Rate

Checked









• Enter Vision UK in the Ledger field


7. In the Create Tax Accounts page, do the following:

• Enter Vision Industries in the Operating Unit field.

• Enter the following default account in the Create Tax Accounts screen:

Field Value


• Click (B) Apply in the Create Tax Accounts page to return to the Tax Accounts page.

8. In the Tax Accounts page,

• Click (B) Apply to return to the Tax Rate Details page.

9. In the Tax Rate Details page, click (B) Apply to return to the Create Tax Rate page.


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Field Value

Tax Determining Factor Set XX AP INTRA EU

Name XX AP INTRA EU


Ledger Vision UK



Class Qualifier Bill From Party



Geography








Geography




Transaction Input Factor

Class Qualifier Blank

Determining Factor Name Product Type

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3. Click (B) Apply.


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Field Value

Tax Condition Set XX AP INTRA EU

Name XX AP INTRA EU

Determining Factor Set XX AP INTRA EU



Field Value

User-Defined Geography Ship From – Operator

Equal To

User-Defined Geography Ship From – Value/From Range

XX EEC


Not Equal To


United Kingdom


Equal To

Registration Registration Status Value/From Range


Geography Ship To – Operator Equal To


United Kingdom

Transaction Input Factor - Product Type - Operator

Equal To

Transaction Input Factor - Product Type – Value/From Range

GOODS


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Field Value



Tax XX VAT

• Click (B) Go.

3. Rule Type: Determine Tax Status

• Click (I) Expert Rule Entry.


Field Value

Tax Law Reference XX VAT AP INTRA EU

Description XX VAT AP INTRA EU

Rule Code XX VAT AP INTRA EU

Rule Name XX VAT AP INTRA EU




XX AP INTRA EU


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Field Value

Condition Set Code XX AP INTRA EU

Name XX AP INTRA EU (defaults)

Order 1

Result XX INTRA EU STD



Field Value


Rule Order 1




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Tasks


• (N) Invoices Entry Invoices


Field Value



Trading Partner XX EU SUPPLIER

Supplier Site PARIS

Invoice Date Today

Invoice Number XXRULE2

Currency EUR (defaults)



3. Accept all other defaults. **** NOTE: DO NOT SAVE!! ****


• Click (ST) 2 Lines.

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Field Value

Line 1 (defaults)


Amount 1000.00


Description XX AP INTRAEU

Product Type GOODS


Ship To Vision Industries (defaults)


• Click (I) Save.



8. Verify that your XX VAT tax is not applied. The tax rule you created and your Supplier setup specified that the Status should be XX INTRA-EU STD and the Tax should be Self-assessed.

9. Verify that your Tax has been created as Self-assessed by clicking (B) Tax Details

10. Close the Invoice Workbench, to return to the Navigator.

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Practice - Create an Intra-EU Rule Example for AR

Overview

In this exercise, you will modify tax rules so that your XX VAT in your XX VAT REGIME will return a Tax Status of INTRA-EU ZERO if the following conditions are met for an AR invoice:

− There is an intra-EC movement of goods from the UK to another EC Member. − The goods are received by a VAT registered customer in the EC. − The supplier in the UK is registered for VAT. − The UK supplier is not subject to UK VAT and does not charge VAT as long as it

quotes the Customers VAT number on the invoice. − But because the supplier has to report to HMRC, there should be an INTRA-EU

ZERO tax status on the invoice.

Tasks

• Create an Intra-EU Customer.

• Create a new XX INTRA-EU ZERO Status and Rate.

• Create a rule that incorporates the preceding conditions. − Test your rule by entering an invoice for your XX EU Customer.

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Create a Customer

Tasks

Create a New Customer

1. Responsibility = Receivables Vision UK

2. Navigate to the Customers window.

• Customer Type = Organization

• Enter the following information: − Organization Name = XX EU Customer − Account Description = XX EU Customer ACCT1 − Profile Class = DEFAULT

3. Under the Account Site Address region, enter address information according to the following table:

Field Value

Country France

Address Line 1 Rue Argentee

City Paris

4. Under the Account Site Details, ensure that Vision Industries is the Operating Unit.

Note: For each address defined for a customer, you must identify the business purpose of the address. In this case, this address serves two purposes: it is the address to which we ship material, and it is the address to which we send the bill. When we create a Business Purpose for this address we give it a nickname or location name.

5. Enter a Business Purpose. − Purpose = Bill To − Location = PARIS-Bill To − Primary Checked

6. (B) Apply

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7. Add another Business Purpose. − (I) Details (next to the Bill to Address) − (T) Business Purpose − (B) Add Another Row − Purpose = Ship To − Location = PARIS – Ship To − Bill to = PARIS-Bill To (use the LOV) − Primary Checked

8. (B) Apply

9. (B) Save

10. Close all windows and return to the Navigator.

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Verify the Customer Records Registration Status



3. Search for your Customer by changing the party type to Third Party, entering the customer name in the Party Name field and clicking (B) Go.

4. Navigate to the Update Tax Profile tab.

5. Enter the following to information in the Tax Registration tab:

Field Value



6. Save.


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Create an INTRA-EU ZERO Status




Field Value




Tax Status Code XX INTRA EU ZERO

Name XX Intra EU ZERO








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Create an INTRA-EU ZERO Rate



Field Value




Tax Status Code XX INTRA EU ZERO (defaults)


Tax Rate Code XX INTRA EU ZERO RATE


Percentage Rate 0



3. Apply the tax rate.


5. Enter tax rate details:

Field Value

Tax Rate Name XX INTRA EU ZERO VAT Rate










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Field Value


9. Apply the tax accounts/tax rate.


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Field Value

Tax Determining Factor Set XX AR INTRA EU

Name XX AR INTRA EU


Ledger Vision UK



Class Qualifier Ship To Party



Geography








Geography



3. Apply the set up.


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Field Value

Tax Condition Set XX AR INTRA EU

Name XX AR INTRA EU

Determining Factor Set XX AR INTRA EU

• Click Continue.


Field Value

User-Defined Geography Ship To – Operator

Equal To

User-Defined Geography Ship To – Value/From Range

XX EEC


Equal To


United Kingdom


Equal To



Geography Ship To – Operator Not Equal To


United Kingdom

• Click Finish to return to the Tax Condition Sets page.


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2. In the Tax Rules search region, enter:

Field Value



Tax XX VAT

3. Select the Expert Rule Entry for the Determine Tax Status Rule Type.


Field Value

Tax Law Reference XX AR VAT INTRA EU

Description XX AR VAT INTRA EU

Rule Code XX AR VAT INTRA EU

Rule Name XX AR VAT INTRA EU




XX AR INTRA EU



Field Value

Condition Set Code XX AR INTRA EU

Name XX AR INTRA EU (defaults)

Order 1

Result XX INTRA EU ZERO


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Field Value


Rule Order 2

• Click Finish in the Step 3 of 3 page.


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Tasks

• Transactions Transactions


Field Value

Source Manual-Other








• (ST) Main

3. Enter the Ship To and Bill To information:

Field Value

Ship To XX EU Customer

Location PARIS

Bill To XX EU Customer

Location PARIS



• (ST) Main

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Field Value

Num 1

Item AS65101

Description Vision Pad – Bronze (Defaults)

UOM Ea

Quantity 1

Unit Price 1000.00

6. (T) More

7. Warehouse Name = Vision Industries


• Click (I) Save.


• Click (B) Tax.


Field Value


Tax XX VAT

Tax Status XX INTRA EU ZERO

Rate Name XX INTRA EU ZERO RATE

Rate .000

Tax Amount 0.00






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15. In the Create Accounting window, do the following:


• Click (B) OK.







Accounted DR

Accounted CR



03-000-2360-000-000 Your date Tax 175.00




20. Enter another transaction for the same item out of the same warehouse to Business World in Paris (Ship To and Bill To). What Tax is calculated this time?

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Solution - Create an Intra-EU Rule Example for AR

Tasks

• Create an Intra-EU Customer.

• Create a new XX INTRA-EU ZERO Status and Rate.

• Create a rule that incorporates the preceding conditions. − Test your rule by entering an invoice to your XX EU Customer.

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Create a Customer

Tasks

Create a New Customer

1. Responsibility = Receivables Vision UK

2. Navigate to the Customers window.

(N) Customers > Customers

• Customer Type = Organization (default)

• Click (B) Create and enter the following details: − Organization Name = XX EU Customer − Account Description = XX EU Customer ACCT1 − Profile Class = DEFAULT

3. Under the Page Section: Account Site Address (need to scroll down), enter address information according to the following table:

Field Value

Country France

Address Line 1 Rue Argentee

City Paris

4. Under the Account Site Details, ensure that Vision Industries is the Operating Unit.

Note: For each address defined for a customer, you must identify the business purpose of the address. In this case, this address serves two purposes: it is the address to which we ship material, and it is the address to which we send the bill. When we create a Business Purpose for this address we give it a nickname or location name.

5. Enter a Business Purpose.

− Purpose = Bill To − Location = PARIS-Bill To − Primary Checked

6. Click (B) Apply.

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7. Add another Business Purpose. − Click (I) Details (at the bottom of Page Section: Sites). − Click (T) Business Purpose. − Click (B) Add Another Row.

• Enter details for a second Business Purpose. − Purpose = Ship To − Location = PARIS – Ship To − Bill to = PARIS-Bill To (use the LOV) − Primary Selected

8. Click (B) Apply.

9. Click (B) Save.

10. Close all windows and return to the Navigator.

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Verify the Customer Records Registration Status


2. Navigate to the Party Tax Profiles page:

• (N) Parties Party Tax Profiles

3. Search for your Customer by doing the following:

• Change the Party Type to Third Party.

• Enter the customer name (XX EU CUSTOMER) in the Party Name field.

• Click (B) Go.




7. Enter the following to information:

Field Value






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Create an INTRA-EU ZERO Status




• Country = United Kingdom

• Tax Regime Code = XX VAT REGIME

3. Click (B) Go.


• Click the (H) Expand All.

• Click (I) Create Tax Status (on Tax Level Type row).


Field Value




Tax Status Code XX INTRA EU ZERO

Name XX Intra EU ZERO









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Create an INTRA-EU ZERO Rate



• Click (I) Create Tax Rate (for your Intra-EU STD Status).


Field Value




Tax Status Code XX INTRA EU ZERO (defaults)


Tax Rate Code XX INTRA EU ZERO RATE


Percentage Rate 0



3. Click (B) Apply.

• Verify that the Tax Rate has been successfully created.



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5. Enter tax rate details:

Field Value

Tax Rate Name XX INTRA EU ZERO VAT Rate

(Scroll down to bottom of page) Set as Default Rate

Checked












8. Enter the following default account in the Create Tax Accounts screen:

Field Value



10. Click (B) Apply in the Tax Accounts page to return to the Create Tax page.

11. Click the (B) Apply in the Tax Rate Details page to return to the Create Tax Rate page.


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Field Value

Tax Determining Factor Set XX AR INTRA EU

Name XX AR INTRA EU


Ledger Vision UK



Class Qualifier Ship To Party



Geography








Geography



3. Click (B) Apply.


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Field Value

Tax Condition Set XX AR INTRA EU

Name XX AR INTRA EU

Determining Factor Set XX AR INTRA EU



Field Value

User-Defined Geography Ship To – Operator

Equal To

User-Defined Geography Ship To – Value/From Range

XX EEC


Equal To


United Kingdom


Equal To

Registration Registration Status Value/From Range


Geography Ship To – Operator Not Equal To


United Kingdom



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Field Value



Tax XX VAT

• Click (B) Go.

3. For Rule Type: Determine Tax Status.

• Click (I) Expert Rule Entry.


Field Value

Tax Law Reference XX AR VAT INTRA EU

Description XX AR VAT INTRA EU

Rule Code XX AR VAT INTRA EU

Rule Name XX AR VAT INTRA EU




XX AR INTRA EU


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Field Value

Condition Set Code XX AR INTRA EU

Name XX AR INTRA EU (defaults)

Order 1

Result XX INTRA EU ZERO



Field Value


Rule Order 2




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Tasks

Responsibility = Receivables Vision UK



Field Value

Source Manual-Other








• (ST) Main


Field Value

Ship To XX EU Customer

Location PARIS

Bill To XX EU Customer

Location PARIS



• (ST) Main

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Field Value

Num 1

Item AS65101

Description Vision Pad – Bronze (Defaults)

UOM Ea

Quantity 1

Unit Price 1000.00

6. Click (T) More.

7. Scroll right to verify Warehouse Name = Vision Industries.


• Click (I) Save.


• Click (B) Tax.


Field Value


Tax XX VAT

Tax Status XX INTRA EU ZERO

Rate Name XX INTRA EU ZERO RATE

Rate .000

Tax Amount 0.00






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• Click (B) OK.





18. In the Subledger Journal Entries window, do the following:

• Verify that you see the following at a minimum (additional lines may have been created depending on the taxes applied to your transaction).


Accounted DR

Accounted CR



03-000-2360-000-000 Your date Tax 175.00




20. Enter another transaction for the same item out of the same warehouse to Business World in Paris (Ship To and Bill To). What Tax is calculated this time?

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Practice - Create Party Fiscal Classifications

Overview

In this exercise, you modify tax rules so that your XX VAT in your XX VAT REGIME returns a Tax Status of XX ZERO if the Supplier is classified as a Registered Charity.

Tasks

• Create a new Tax Status of XX ZERO.

• Create a Registered Charity Party Fiscal Classification using the Trading Community Manager Responsibility.

• Create a Party Fiscal Classification in E-Business Tax.

• Create a new supplier and classify it using your new code.

• Create a rule to determine the Tax Status for Invoices from this supplier.

• Test your Rule.

Create an XX Zero Tax Status 1. Using the Tax Managers Vision UK responsibility, navigate to the Tax Status page.

2. Enter the following details: − Tax Regime Code = XX VAT REGIME − Configuration Owner = Global Configuration Owner − Tax = XX VAT − Status Code = XX ZERO − Status Name = XX ZERO − Effective from - 01-Jan-1950 − Effective to date – blank

3. (B) Apply

4. Search for your Status and add a rate. − Country = United Kingdom − Tax Status Code = XX ZERO

5. Go to the Regime to Rate Flow tab.

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6. Click Create Tax Rate and enter the following data: − Tax Rate Code = XX ZERO − Percentage Rate = 0

7. Click the Rate Details.

8. Scroll down to Other Details and click Set as Default Rate Effective from 01-Jan-1950.

9. Apply





Field Value


13. Apply the new set up.


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Create a Party Fiscal Classification Using Trading Community Manager Responsibility

1. Switch responsibilities to the Trading Community Manager and navigate to the classification page.

2. Create a Category Class.

3. Enter the following information: − Class Category Name: XX PARTY CLASS − Meaning: XX Party Classification − Description: XX Party Classification

4. Select to link this to the HZ_PARTIES table.

5. (B) Apply and Create Class Codes

6. Enter a Class Code, Meaning and Description of your choice for example, Government, and so on.

7. (B) Apply and (B) Compile

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Create a Party Classification in E-Business Tax

1. Switch responsibilities to Tax Managers Vision UK and navigate to the party classification page.

2. Click (B) Create.

3 Enter the following information: − Party Classification = XX PARTY CLASS − Fiscal Classification Type Code = XX CLASS − Name = XX Class − Effective From = Today − Regime Code = XX VAT REGIME − Effective From = Today

4. (B) Apply

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1. Using the Payables Vision UK responsibility, navigate to the Supplier Setup screen.

2. In the Suppliers screen, click Create Supplier.


Field Value

Organization XX Party Class Supplier

4. Apply.

5. In the Suppliers screen, click the Address Book in the side panel.

6. In the Update XX Party Class Supplier: Address book screen, click Create.


Field Value


Address Line 1 High Street

City Wokingham

County Berks

Postcode RG1

Address Name WOKINGHAM

8. Click Continue (should take you to the Create Address: Site Creation screen).

9. In the Create Address: Site Creation screen, check the Select check box next to your site name.

10. Apply.

11. Verify that you receive confirmation that your site has been added to the address book for your XX Party Class Supplier.

12. In the Update Supplier screen, click Manage Sites next to your new site.

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13. In the Uses tab, check the following:

Field Value

Pay Selected

Primary Pay Selected

14. Click Apply (you should be returned to the Update XX Party Class Supplier: Address book screen).

15. Click the Payment details.

16. Click Check and Save.

17. Scroll down to Supplier Sites and click the Update Payment Details.

18. Click Check and (B) Save.

19. Click the Tax and Reporting tab.

20. Select Allow Tax Applicability and save.

21. Scroll down to the Supplier Sites and click the Update Transaction Tax.

22. Select the Allow Tax Applicability box at this site level also.

23. Click Save.

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Update the Party Tax Profile for Your Supplier

1. Switch responsibilities to Tax Managers Vision UK and navigate to the party tax profiles page.

2. Search for the Third Party you have just created.

3. Click Update Tax Profile.

4. Go to the Classifications tab.

5. Add Another Row.

6. Enter the following information: − Fiscal Classification Type Code = XX CLASS − Fiscal Classification Code = Choose your code − Effective From = Today

7. Click Apply.

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Field Value

Tax Determining Factor Set XX PARTY CLASS

Name XX PARTY CLASS

Set Usage Tax Rules (default)

Ledger Vision UK


Determining Factor Class Party Fiscal Classification

Class Qualifier Ship From Party

Determining Factor Name XX CLASS

3 Click Apply.


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Field Value

Tax Condition Set XX PARTY CLASS

Name XX Party Classification

Determining Factor Set XX PARTY CLASS


Field Value

Ship From Party– Operator – Equal To

Your Code

• Click Finish to return to the Tax Condition Sets page.


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Field Value



Tax XX VAT

3. Select Expert Rule Entry for the Determine Tax Status Rule Type.

4. In the Create Tax Rule: General Information page, enter:

Field Value

Tax Law Reference XX Party Class Law

Description XX ZERO Status to be used for Registered Charities

Rule Code XX PARTY CLASS

Rule Name XX PARTY CLASS

Effective From Today



XX PARTY CLASS

• Click the Next in the Step 1 of 3 page.

5. In the Create Tax Rule: Rule Conditions page, enter:

Field Value

Condition Set Code XX PARTY CLASS

Name XX PARTY CLASS (defaults)

Order 1

Result XX ZERO


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Field Value

Enable YES!!!! SELECT THIS BOX!!

Rule Order 3

• Click Finish in the Step 3 of 3 page.


8. Test your rule by entering an invoice for your XX Party Class Supplier in AP using the Payables Vision UK responsibility

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Solution - Create Party Fiscal Classifications

Create an XX Zero Tax Status 1. Using the Tax Managers Vision UK responsibility, navigate to the Tax Status page.

• (N) Tax Configuration>Tax Statuses

2. (B) Create

3. Enter the following details: − Tax Regime Code = XX VAT REGIME − Configuration Owner = Global Configuration Owner − Tax = XX VAT − Status Code = XX ZERO − Status Name = XX ZERO − Effective from - 01-Jan-1950 − Effective to date – blank

4. (B) Apply

5. Search for your Status and add a rate. − Country = United Kingdom − Tax Status Code = XX ZERO

6. (B) Go


8. Click (I) Create Tax Rate. − Tax Rate Code = XX ZERO − Percentage Rate = 0

9. Click (I) Rate Details.

10. Scroll down to Other Details and click Set as Default Rate Effective from 01-Jan-1950.

11. (B) Apply


• Click the (I) Tax Accounts.



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Field Value




17. Click (B) Apply in the Tax Rate Details page to return to the Create Tax Rate page.


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Create a Party Fiscal Classification Using Trading Community Manager Responsibility

1. Switch responsibilities to the Trading Community Manager and navigate to the classification page.

• (N) Trading Community>Administration>Classifications

2. (B) Create Category Class

3. Enter the following information: − Class Category Name: XX PARTY CLASS − Meaning: XX Party Classification − Description: XX Party Classification

4. Select to link this to the HZ_PARTIES table.

5. (B) Apply and Create Class Codes

6. Enter a Class Code, Meaning and Description of your choice, for example, Government, and so on.

7. (B) Apply (B) Compile (B) OK


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Create a Party Classification in E-Business Tax

1. Switch responsibilities to the Tax Managers Vision UK and navigate to the party classification page.

• N) Parties>Party Classification

2. (B) Create

3. Enter the following information: − Party Classification = XX PARTY CLASS − Fiscal Classification Type Code = XX CLASS − Name = XX Class − Effective From = Today − Regime Code = XX VAT REGIME − Effective From = Today

4. (B) Apply

5. (H) Close Window

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2. In the Suppliers screen, click the (B) Create Supplier.


Field Value

Organization XX Party Class Supplier

4. Click (B) Apply.

5. In the Suppliers screen, click (H) Address Book in the side panel.

6. In the Update XX Party Class Supplier: Address book screen, click (B) Create.


Field Value


Address Line 1 High Street

City Wokingham

County Berks

Postcode RG1

Address Name WOKINGHAM

8. Click (B) Continue (should take you to the Create Address: Site Creation screen).

9. In the Create Address: Site Creation screen, select the Select check box next to your site name.


11. Verify that you receive confirmation that your site has been added to the address book for your XX Party Class Supplier.

12. In the Update Supplier screen, click (B) Manage Sites next to your new site.

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Field Value

Pay Selected


14. Click (B) Apply (you should be returned to the Update XX Party Class Supplier: Address book screen).

15. Click (H) Payment details.

16. Select Check and (B) Save.

17. Scroll down to Supplier Sites and click the (I) Update Payment Details.


19. Click (H) Tax and Reporting.

20. Select Allow Tax Applicability.

21. (B) Save

22. Scroll down to the Supplier Sites and click (I) Update Transaction Tax.

23. Select the Allow Tax Applicability box at this site level also.

24. (B) Save


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Update the Party Tax Profile for Your Supplier

1. Switch responsibilities to Tax Managers Vision UK and navigate to the party tax profiles page.

• (N) Parties>Party Tax Profiles

2. Search for the Third Party you have just created.

3. (B) Go


5. (T) Classifications

6. (B) Add Another Row

7. Enter the following information: − Fiscal Classification Type Code = XX CLASS − Fiscal Classification Code = Choose your code − Effective From = Today

8. (B) Apply


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Field Value

Tax Determining Factor Set XX PARTY CLASS

Name XX PARTY CLASS


Ledger Vision UK


Determining Factor Class Party Fiscal Classification

Class Qualifier Ship From Party

Determining Factor Name XX CLASS

3. Click (B) Apply.


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Field Value

Tax Condition Set XX PARTY CLASS

Name XX Party Classification

Determining Factor Set XX PARTY CLASS



Field Value

Ship From Party– Operator – Equal To

Your Code



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Field Value



Tax XX VAT

• Click (B) Go.

3. Select the (I) Expert Rule Entry for the Determine Tax Status Rule Type.


Field Value

Tax Law Reference XX Party Class Law

Description XX ZERO Status to be used for Registered Charities

Rule Code XX PARTY CLASS

Rule Name XX PARTY CLASS




XX PARTY CLASS


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Field Value

Condition Set Code XX PARTY CLASS

Name XX PARTY CLASS (defaults)

Order 1

Result XX ZERO


6. In the Create Tax Rule: Rule Order page, enter

Field Value


Rule Order 3




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Practice - Create a Product Fiscal Classification

Tasks

• Create a Reduced Rate Item to use in this exercise.

• Create a new XX Reduced Rate Status.

• Create a rule that incorporates your Product and Status.

• Test your rule by entering an invoice in Receivables for the Reduced Rate Item.

Create an Inventory Item Tasks

1. Using the Purchasing Vision UK responsibility, navigate to the Master Items form.

2. In the Organizations form, select the E3 Vision Industries organization and click (B) OK.

3. In the Master Item form, enter the following: Field Value

Item XX REDUCED RATE ITEM

Description XX REDUCED RATE ITEM

4. Select (M) Tools Copy From.

5. In the Copy From form, select the Purchased Item template from the list of values and click the (B) Apply.

6. Verify that you see the message “Template Implemented” in the lower-left corner of your screen.

7. Click (B) Done in the Copy From form.

8. Save, by pressing Ctrl-S.

9. Select (M) Tools Categories.

10. Note that this item is assigned to the Purchasing MISC.MISC category.

11. Close the Category Assignment form.

12. In the Item form, select the (M) Tools Organization Assignment.

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13. In the Organization Assignment screen, assign your item to the E3 organization.

14. Save your work.

15. Close the Master Item form.

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Create a Product Classification

1. Switch Responsibilities to Tax Managers Vision UK.

2. Navigate to the create Product Classifications page.

3. In the Create Product Fiscal Classification Type page, enter the following:

Field Value

Inventory Category Set Purchasing

Levels 1 (defaults)

Fiscal Classification Type Code XXINV PRODUCT

Name XX Inventory Product




Use in Item Exceptions Leave Blank



4. Click (B) Apply in the Create Product Fiscal Classification Type page.

5. Verify that you receive the following confirmation, “The fiscal classification was successfully created.”

Our rule is going to state that if this Product is used then instead of a 17.5% tax being used we should use a 5% Reduced Rate.

You need to create a new Status of XX Reduced and a new Rate of 5%.

Remember to mark this as a default rate and add the Tax Account to the rate 03-000-2360-000-000.

Once you have created your new Status and Rate, you can create your rule as described in the next practice.

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Use a Guided Rule Entry to Create a New Tax Rule

Overview

Use a Guided Rule Entry to create a new tax rule for the Determine Tax Status step to make the XX Reduced Status apply to transactions using your Reduced Rate Item.

Tasks

1. Navigate to the Tax Rules tab.

2. In the Tax Rules Search region, enter:

Field Value



Tax XX VAT

3. Click (I) Guided Rule Entry for the Determine Tax Status step.


Field Value

Rule Code XX INV PROD RULE

Name XX INV PROD RULE



This rule applies to all transactions. Selected


5. In the Create Tax Rule: Determining Factors and Conditions page, click (T) Product.

6. In the Product Classification region, enter:

Field Value

Fiscal Classification Type Code XX Inventory Product

Operator Equal To

Value Select MISCMISC from LOV


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7. In the Create Tax Rule: Condition Results page, enter:

Field Value

Tax Status XX REDUCED



Field Value

Enable SELECTED!!

Rule Order 4

Important: Make sure you select the Enable check box!!


9. In the Create Tax Rule: Rule Sets page, enter:

Field Value

Determining Factor Set XX INV PROD


Condition Set XX INV PROD

Name XX INV PROD

10. Click (B) Finish in the Step 5 of 5 page.



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Enter an Invoice in Receivables to Test Your Rule

1. Using the Receivables Vision UK responsibility, navigate to the Transaction entry screen.

2. Enter the following information: − Source = Manual Other − All other fields should default − Ship To = Business World

3. (B) Line Items

4. Enter the following for your invoice lines: − Item = XX REDUCED RATE − Description = Reduced Rate Item − Quantity = 1 − Price = 100

5. Save your work

6. (B) Tax

7. Note that your reduced rate of 5% should have been used for this Item.

8. Enter a second line on your invoice for Item AS18947. Save your invoice again and note that your normal rate of 17.5 is calculated for this item.

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Enter a Purchase Order Matched Invoice in AP to Test Your Rule

1. Switch Responsibility to Purchasing Vision UK.

2. Navigate to the Purchase Orders page.

3. In the Purchase Orders form, enter a purchase order: Field Value

Operating Unit Vision Industries (default)

Type Standard Purchase Order (default)

Supplier Advantage Corp

Site LONDON

4. In the Lines region, enter: Field Value

Num 1 (default)

Type Goods (default)


Category MISC.MISC

UOM Each (default)

Quantity 1

Price 100.00

Promised Today + 1 day

• Click (I) Save to save your purchase order.

5. (B) Shipments

6. (B) Distributions

7. Tab to the PO Charge Account field to populate the charge account for your Purchase Order.

8. Save your work and return to the Purchase Order Header. Make a note of your Purchase Order Number

9. (B) Approve

10. Deselect the Email Transmission method.

11. (B) OK

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12. Your Purchase Order should now be Approved.

13. Switch Responsibility to Payables Vision UK.

14. Navigate to the Invoice Entry screen.

15. Open the Purchase Order/Receipt Matching folder.

16. Enter your PO Number, tab to Invoice Date, and enter the following:

Field Value

Invoice Date Today

Invoice Number XXINVPRD



GL Date Today (default)


18. (B) Match


20. (B) Tax Details

21. Verify that your XX VAT has been applied with your XX REDUCED STATUS.

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Solution - Create Product Fiscal Classifications

Create a Product Fiscal Classification Tasks

• Create a Reduced Rate Item to use in this exercise.

• Create a new XX Reduced Rate Status.

• Create a rule that incorporates your Product and Status.

• Test your rule by entering an invoice in Receivables for the Reduced Rate Item.

Create an Inventory Item

Tasks


• (N) Items Master Items

2. In the Organizations form, select the E3 Vision Industries organization, and click (B) OK.

3. In the Master Item form enter: Field Value


Description XX REDUCED RATE ITEM


5. In the Copy From form, select the Purchased Item template from the list of values and click (B) Apply.

6. Verify that you see a message “Template Implemented” in the lower-left corner of your screen.



9. Select the (M) Tools Categories.

10. Note that this item is Assigned to the Purchasing MISC.MISC category.

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11. Close the Category Assignment form.



14. Save your work.


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Create a Product Classification


2. Navigate to the create Product Classifications page.

• (N) Products Product Classifications


3. In the Create Product Fiscal Classification Type page, enter:

Field Value

Inventory Category Set Purchasing

Levels 1 (default)

Fiscal Classification Type Code XXINV PRODUCT





Use in Item Exceptions Leave Blank



4. Click (B) Apply in the Create Product Fiscal Classification Type page.

5. Verify that you receive the following confirmation, “The fiscal classification was successfully created.”

Our rule is going to state that if this Product is used then instead of a 17.5% tax being used, we should use a 5% Reduced Rate.

You need to create a new Status of XX Reduced and a new Rate of 5%.

Navigation is (N) Tax Configuration>Tax Statuses.

(N) Tax Configuration>Tax Rates (Remember to mark this as a default rate and add the Tax Account to the rate 03-000-2360-000-000.)

Once you have created your new Status and Rate, you can create your rule as described in the next practice.

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Overview

Use a Guided Rule Entry to create a new tax rule for the Determine Tax Status step to make the XX Reduced Status apply to transactions using your Reduced Rate Item.

Tasks

1. Navigate to (T) Tax Configuration (ST) Tax Rules.


Field Value



Tax XX VAT

• Click (B) Go.



Field Value

Rule Code XX INV PROD RULE

Name XX INV PROD RULE



This rule applies to all transactions Selected



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6. In the Product Classification region, enter the following:

Field Value

Fiscal Classification Type Code XX Inventory Product

Operator Equal To

Value Pick MISCMISC from LOV



Field Value

Tax Status XX REDUCED



Field Value

Enable Selected!!

Rule Order 4



9. In the Create Tax Rule: Rule Sets page, enter the following:

Field Value

Determining Factor Set XX INV PROD


Condition Set XX INV PROD

Name XX INV PROD




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Enter an Invoice in Receivables to Test Your Rule

1. Using the Receivables Vision UK responsibility, navigate to the Transaction entry screen.

• (N) Transactions>Transactions

2. Enter the following information: − Source = Manual Other − All other fields should default − Ship To = Business World

3. (B) Line Items

4. Enter the following for your invoice lines: − Item = XX REDUCED RATE − Description = Reduced Rate Item − Quantity = 1 − Price = 100

5. Save your work.

6. (B) Tax

7. Note that your reduced rate of 5% should have been used for this Item.

8. Enter a second line on your invoice for Item AS18947. Save your invoice again and note that your normal rate of 17.5 is calculated for this item. Why do you think this is?

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Enter a Purchase Order Matched Invoice in AP to Test Your Rule

1. Switch the responsibility to Purchasing Vision UK.

2. Navigate to the Purchase Orders page.

• (N) Purchase Orders Purchase Orders

3. In the Purchase Orders form, enter a purchase order: Field Value



Supplier Advantage Corp

Site LONDON


Num 1 (default)



Category MISC.MISC

UOM Each (default)

Quantity 1

Price 100.00


• Click (I) Save to save your purchase order.

5. (B) Shipments

6. (B) Distributions

7. Tab to the PO Charge Account field to populate the charge account for your Purchase Order.

8. Save your work and return to the Purchase Order Header. Make a note of your Purchase Order Number.

9. (B) Approve

10. Deselect the Email Transmission method.

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11. (B) OK

12. Your Purchase Order should now be Approved.

13. Switch the responsibility to Payables Vision UK.

14. Navigate to the Invoice Entry screen.


15. Open the Purchase Order/Receipt Matching folder.

16. Enter your PO Number, tab to Invoice Date, and enter the following:

Field Value

Invoice Date Today

Invoice Number XXINVPRD





18. (B) Match

• (B) Find

• Check the Match check box.

• (B) Match



20. (B) Tax Details

21. Verify that your XX VAT has been applied with your XX REDUCED STATUS.

22. Close the Invoice Workbench to return to the Navigator.

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Guided Demonstration - Create Non-Inventory Product Fiscal Classifications

Tasks

Sign on Field Value

User Name XXUSER



1. Navigate to the Product Classification Page.

• (N) Products>Product Classifications

2. In the search screen, change the Product Classification Source to Oracle E-Business Tax.

3. Click (B) Go.

4. This returns the seeded Product Category that you can update by clicking (I) Update.

5. Click (B) Create.

6. Enter the following Information: − Fiscal Classification Code and Name = XX ZERO GOODS

7. Click (B) Apply.

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Tasks

1. Navigate to (T) Tax Configuration (ST) Tax Rules.


Field Value



Tax XX VAT

• Click (B) Go.



Field Value

Rule Code XX NON INV PROD

Name XX NON INV PROD RULE



This rule applies to all transactions Selected



6. Expand the Non-Inventory-Based Product area and enter:

Field Value

Classification Hierarchy Level Level 1

Operator Equal To

Value XX ZERO GOODS


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Field Value

Tax Status XX ZERO



Field Value

Enable Selected!!

Rule Order 5



9. In the Create Tax Rule: Rule Sets page, enter:

Field Value

Determining Factor Set XX NON INV PROD

Name XX Non Inventory Product

Condition Set XX NON INV PROD

Name XX NON INV PROD




13. Test your rule by entering an invoice in AP using the Payables Vision UK responsibility. Use the Supplier Advantage Corp and the LONDON site. Your Invoice line will have to specify your non-inventory product in the Product Category field for the rule to work.

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Practice - Partially Recoverable Tax Based on Account Codes

Overview

In this exercise, you will modify tax rules so that your XX VAT in your XX VAT REGIME will be 50% recoverable if the invoice is coded to Car Hire (Account Code 7650) and will be 0% recoverable if the invoice is coded to Entertainment (Account Code 7695)

Tasks

• Create a 50% recovery rate and a 0% recovery rate

• Create a Determining Factor Set using the Determining Factor Class of “Accounting”

• Create two Condition Sets with a range for the cost centre segment and an Equal To for the Account segment

• Create an Expert Rule against the Determine Recovery Rate Rule Type

• Check the “Allow Primary Recovery Rate Determination Rules” flag at the TAX level

• Attach the Recovery Rate Rule name in Tax Rate Details in the “Rule Code of Recovery Rate” field

• Test your Rule

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Create a 50% Recovery Rate



Field Value



Tax XX VAT





Effective to Blank

Set as Default Rate No

Default Effective From Blank







8. Click (B) Apply in the Tax Accounts page, to return to the Create Tax Recovery Rate page.



11. Repeat the steps above to create an XX 0 PERCENT Recovery Rate

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Field Value

Tax Determining Factor Set XX RECOVERY RULE

Name XX RECOVERY RULE


Ledger Vision UK


Determining Factor Class Accounting

Class Qualifier Flexfield Segment 2

Determining Factor Name Line Account

2nd Line Determining Factor Class

Accounting



2. Click (B) Apply.


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1. Navigate to the Condition Set Page:


Field Value

Tax Condition Set XX RECOVERY RULE


Determining Factor Set XX RECOVERY RULE


2. In the Create Tax conditions window, enter:

Field Value/From Range

To Range

Accounting – Flexfield Segment 3- Equal To 7650

Accounting – Flexfield Segment 2- Range 100 872

• Click (B) Finish, to return to the Tax Condition Sets page.


4. Create another Condition set XX RECOVERY RULE 2 and use your XX RECOVERY RULE again as the determining factor set. Enter the following Tax Conditions:

Field Value/From

Range To Range



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Field Value



Tax XX VAT

3. Select (I) Expert Rule Entry for the Determine Recovery Rate Rule Type.


Field Value

Tax Law Reference XX Recovery Rule

Description XX Recovery Rule

Rule Code XX Recovery Rule

Rule Name XX Recovery Rule



Recovery Type Standard


XX RECOVERY RULE



Field Value

Condition Set Code XX RECOVERY RULE

Name XX RECOVERY RULE (defaults)

Order 1

Result XX 50 PERCENT

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Field Value

Condition Set Code XX RECOVERY RULE 2

Name XX RECOVERY RULE 2 (defaults)

Order 2

Result XX 0 PERCENT

7. Click (B) Next in the Step 2 of 3 page.

8. In the Create Tax Rule: Rule Order page, enter:

Field Value


Rule Order 1



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Amend Your Tax Setup to Allow Recovery Rate Rules



2. Find your XX TAX.

3. Click (I) Update.

4. Expand the Controls and Defaults link.

5. Scroll down to the Tax Recovery Control section.

6. Select the Allow Primary Recovery Rate Determination Rules check box.

7. Click (B) Apply.


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Amend Your Tax Rate


2. Find your XX STD RATE.

3. (I) Update

4. (I) Rate Details

5. Scroll to the Recovery Rate Details section

6. In the Rule of Code Recovery Rate field enter your Recovery Rate Rule

7. (B) Apply

8. (B) Apply

9. Verify that you receive the following confirmation, “The Tax Rate has been successfully updated.”


11. Test out your rule by entering an invoice for £1000 to Advantage Corp at the LONDON site coding the line to 03-110-7650-000-000 in AP using the Payables Vision UK responsibility.

12. Note that in the Invoice Lines the tax is shown as £175 but if you click the All Distributions button you should see that your tax line has been split into 50% recoverable and 50% non recoverable.

13. Enter a second invoice and change the account to 7695 and calculate the tax. Has it used your 0% recovery?

14. Enter a third invoice to account code 7699 to confirm that your 100% Recovery is used.

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Solution: Partially Recoverable Tax Based on Account codes

Create a 50% Recovery Rate 1. Navigate to the Recovery Rates page.

• (T) Tax Configuration (ST) Tax Recovery Rates.



Field Value



Tax XX VAT





Effective to Blank

Set as Default Rate No

Default Effective From Blank









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10. Verify you receive the following confirmation, “The Tax Recovery Rate has been successfully created.”

11. Repeat the steps above to create an XX 0 PERCENT Recovery Rate.

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Field Value

Tax Determining Factor Set XX RECOVERY RULE



Ledger Vision UK


Determining Factor Class Accounting



2nd Line Determining Factor Class

Accounting



2. Click (B) Apply.


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1. Navigate to the Condition Set Page




Field Value

Tax Condition Set XX RECOVERY RULE


Determining Factor Set XX RECOVERY RULE


2. In the Create Tax conditions window, enter:

Field Value/From Range

To Range



• Click (B) Finish, to return to the Tax Condition Sets page.


4. Create another Condition set XX RECOVERY RULE 2 and use your XX RECOVERY RULE again as the determining factor set. Enter the following Tax Conditions:

Field

Value/From Range

To Range



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1. Navigate to the Rules Page:



Field Value



Tax XX VAT

• Click (B) Go.

3. Select (I) Expert Rule Entry for the Determine Recovery Rate Rule Type.


Field Value

Tax Law Reference XX Recovery Rule

Description XX Recovery Rule

Rule Code XX Recovery Rule

Rule Name XX Recovery Rule



Recovery Type Standard


XX RECOVERY RULE

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Field Value

Condition Set Code XX RECOVERY RULE

Name XX RECOVERY RULE (defaults)

Order 1

Result XX 50 PERCENT


Field Value

Condition Set Code XX RECOVERY RULE 2

Name XX RECOVERY RULE 2 (defaults)

Order 1

Result XX 0 PERCENT

7. Click the (B) Next in the Step 2 of 3 page.

8. In the Create Tax Rule: Rule Order page, enter

Field Value


Rule Order 1

• Click the (B) Finish in the Step 3 of 3 page.

9. Verify you receive the following confirmation, “The tax rule was successfully created.”

10. Click (H) Close Window, to return to the Navigator

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Amend your Tax Setup to Allow Recovery Rate Rules



2. Find your XX TAX − Country Name = United Kingdom − Regime Code = XX VAT REGIME − (B) Go

3. (I) Update

4. Expand the Controls and Defaults link.

5. Scroll down to the Tax Recovery Control section.

6. Select the Allow Primary Recovery Rate Determination Rules check box

7. (B) Apply

8. Verify you receive the following confirmation, “The tax was successfully updated.”

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Amend Your Tax Rate

1. Navigate to the Tax Rates page:


2. Find your XX STD RATE − Country Name = United Kingdom − Regime Code = XX VAT REGIME − (B) Go

3. (I) Update

4. (I) Rate Details

5. Scroll to the Recovery Rate Details section

6. In the Rule of Code Recovery Rate field enter your Recovery Rate Rule

7. (B) Apply

8. (B) Apply

9. Verify that you receive the following confirmation, “The Tax Rate has been successfully updated.”


11. Test out your rule by entering an invoice for £1000 to Advantage Corp at the LONDON site coding the line to 03-110-7650-000-000 in AP using the Payables Vision UK responsibility.

12. Note that in the Invoice Lines the tax is shown as £175 but if you click the All Distributions button you should see that your tax line has been split into 50% recoverable and 50% Non Recoverable.

13. Enter a second invoice and change the account to 7695 and calculate the tax. Has it used your 0% recovery?

14. Enter a third invoice to account code 7699 to confirm that your 100% recovery is used.

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Practice - Create Product Exceptions


Tasks



3. In the Master Item form enter the following: Field Value

Item XX EXCEPTION

Description XX EXCEPTION



6. Verify that you see the message “Template Implemented” in the lower-left corner of your screen.




10. Change the category to Purchasing SUPPLIES.OFFICE category.

11. Save and close the Category Assignment form.



14. Save your work.


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Create a Product Tax Exception

Tasks

1. Using the Tax Managers Vision UK responsibility, navigate to the Tax Exceptions page.

2. In the Create Tax Exception page, enter the following: Field Value



Tax XX VAT



Exception Type Item (defaults)

Inventory Organization Vision Operations

Item XX EXCEPTION

Exception Reason Certificate On File (defaults)


Effective To Leave Blank

Exception Rate Type Special Rate (defaults)

Special Rate Percentage 0

3. Click (B) Apply.

4. Verify that you receive the following confirmation, “The tax exception was successfully created.”


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1. Using the Receivables Vision UK responsibility, navigate to the Transactions form.

2. Enter a customer invoice based on the following header information: Field Value

Source Manual-Other

Date Instructor Assigned

GL Date Instructor Assigned

Class Invoice (defaults)

Currency GBP (defaults)

Type WF_Invoice (defaults)

Legal Entity Vision Industries (defaults)






Num 1 (defaults)

Item XX EXCEPTION

UOM Each

Quantity 1

Unit Price 1000.00

Amount 1000.00 (defaults)


8. Navigate to the Tax page.

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9. Verify that you see the following information about your tax: Field Value


Tax: XX VAT

Jurisdiction Blank



Rate .000

Tax Amount 0.00

10. Close the Detail Tax Lines window.

11. Close the Lines window.




15. Verify that you receive the following note, “Accounting has been successfully created for this transaction.”

• Click (B) OK to acknowledge the Note.


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Solution - Create Product Exceptions


Tasks


• (N) Items Master Items


3. In the Master Item form enter the following: Field Value

Item XX EXCEPTION

Description XX EXCEPTION

4. Select the (M) Tools Copy From.


6. Verify that you see a message “Template Implemented” in the lower-left corner of your screen.




10. Change the category to the Purchasing SUPPLIES.OFFICE category.

11. Save and close the Category Assignment form.


13. In the Organization Assignment screen, assign your item to the E3 organisation.

14. Save your work.


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Create a Product Tax Exception

Tasks

1. Using the Tax Managers Vision UK responsibility, navigate to the Tax Exceptions page.

• (N) Products Tax Exceptions


2. In the Create Tax Exception page, enter the following: Field Value



Tax XX VAT



Exception Type Item (defaults)

Inventory Organization Vision Operations

Item XX EXCEPTION

Exception Reason Certificate On File (defaults)



Exception Rate Type Special Rate (defaults)


3. Click (B) Apply.

4. Verify that you receive the following confirmation, “The tax exception was successfully created.”


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Source Manual-Other








• (ST) Main





• (ST) Main


Num 1 (defaults)

Item XX EXCEPTION

UOM Each

Quantity 1

Unit Price 1000.00

Amount 1000.00 (defaults)

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• Click the (I) Save.


• Click the (B) Tax.

9. Verify that you see the following information about your tax. Field Value


Tax: XX VAT

Jurisdiction Blank



Rate .000

Tax Amount 0.00









• Select Create Final Accounting Post To GL

• Click (B) OK.




• Select (M) Tools View Accounting to view the accounts.

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Practice - Create a Customer Tax Exemption

Overview In this lab, you will create a customer tax exemption for a specific customer who is tax exempt.

Create a Customer Tasks

Using the Receivables Vision UK responsibility, navigate to the Customer Creation page.

1. In the Create Organization page, enter the following:

Field Value

Organization Name XXCUSTOMER

2. Enter an address for your customer.

Field Value


Address Line One High Street

Town/City Ascot

County Berks

Postal Code AS1

3. In the Business Purpose area, enter a Name for your Bill To Location and mark it as the Primary Bill To.

4. Click (B) Save and Add Details. After the save is completed, you should be returned to the Update Account screen.

5. In the update Account screen, click (I) Details in the Account Sites region.

6. In the Site: screen, click (T) Business Purposes.

7. In the Business Purposes tab, note that a Bill to Business Purpose has been created for your address, with a location number and has been identified as the primary Bill To.

8. Click (B) Add Another Row in the Business Purposes tab.

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9. Enter the following: Field Value

Purpose Ship To

Bill to Location The Name you already entered

Primary Checked

10. Click the (B) Save.

11. Verify that you receive a confirmation message “Your changes have been saved.”

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Create the Customer Tax Exemption

Tasks

Using the Tax Managers Vision UK responsibility, navigate to the Party Tax Profiles page.

1. Search for your customer: Field Value

Party Type Third Party

Party Name XXCUSTOMER

2. Click (B) Go.

3. Click the (I) Update Tax Profile.

4. In the Update Tax Profile screen, click the (T) Exemptions.

5. In the Exemptions tab, click (B) Create.

6. In the Create Tax Exemptions screen, enter: Field Value

Certificate Number XXCERTIFICATE

Exempt Reason Research

Exempt Status Primary


Configuration Owner Vision Industries (Operating Unit)

Tax XX VAT





Exemption Rate Type Special Rate


7. Click (B) Apply in the Create Tax Exemptions screen.

8. Click (B) Apply in the Update Party Tax Profile screen.

9. Verify that you receive confirmation that "The party tax profile was successfully updated.”

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2. Enter a customer invoice based on the following header information:

Field Value

Source Manual-Other









Field Value

Ship To XXCUSTOMER



Field Value

Num 1 (defaults)

Item Leave blank

Description GOODS

UOM Each

Quantity 1

Unit Price 100.00



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9. Verify that you see the following information about your tax.

Field Value


Tax: XX VAT

Jurisdiction Blank

Tax Status XX STD STATUS


Rate .000

Tax Amount 0.00








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Solution - Create a Customer Tax Exemption

Overview

In this lab, you will create a customer tax exemption for a specific customer who is tax- exempt.

Create a Customer

Tasks

1. Using the Receivables Vision UK responsibility, navigate to the Customer Creation page.

• (N) Customers Customers

• Click (B) Create in the Customers screen.

2. In the Create Organization page, enter the following:

Field Value

Organization Name XXCUSTOMER

3. Enter an address for your customer.

Field Value


Address Line One High Street

Town/City Ascot

County Berks

Postal Code AS1

4. In the Business Purpose area, enter a Name for your Bill To Location and mark it as the Primary Bill To.

5. Click the (B) Save and Add Details. After the save is completed, you should be returned to the Update Account screen.

6. In the update Account screen, click (I) Details in the Account Sites region.

7. In the Site: screen, click the (T) Business Purposes.

8. In the Business Purposes tab, note that a Bill to Business Purpose has been created for your address with a location number and has been identified as the primary Bill To.

9. Click the (B) Add Another Row in the Business Purposes tab.

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10. Enter the following: Field Value

Purpose Ship To

Bill to Location The Name you entered above

Primary Checked

11. Click (B) Save.

12. Verify that you receive the confirmation message “Your changes have been saved.”

13. (H) Close Window

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Create the Customer Tax Exemption

Tasks

1. Using the Tax Managers Vision UK responsibility, navigate to the Party Tax Profiles page.

• (N) Parties -> Party Tax Profiles

2. Search for your customer: Field Value

Party Type Third Party

Party Name XXCUSTOMER

3. Click (B) Go.


5. In the Update Tax Profile screen, click (T) Exemptions.

6. In the Exemptions tab, click (B) Create.

7. In the Create Tax Exemptions screen, enter: Field Value

Certificate Number XXCERTIFICATE

Exempt Reason Research

Exempt Status Primary


Configuration Owner Vision Industries (Operating Unit)

Tax XX VAT





Exemption Rate Type Special Rate


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8. Click (B) Apply in the Create Tax Exemptions screen.

9. Click (B) Apply in the Update Party Tax Profile screen.

10. Verify that you receive confirmation that "The party tax profile was successfully updated."

11. (H) Close Window

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2. Enter a customer invoice based on the following header information:

Field Value

Source Manual-Other








• (ST) Main


Field Value

Ship To XXCUSTOMER



• (ST) Main

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Field Value

Num 1 (defaults)

Item Leave blank

Description GOODS

UOM Each

Quantity 1

Unit Price 100.00


• Click (I) Save.


• Click (B) Tax.

9. Verify that you see the following information about your tax.

Field Value


Tax: XX VAT

Jurisdiction Blank

Tax Status XX STD STATUS


Rate .000

Tax Amount 0.00








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• Click (B) OK.




• Select the (M) Tools View Accounting.



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Practice - Create an Offset Tax

Overview

In this exercise, you will set up Offset Tax to use with your Regime. Note the Event Class settings for Payables Invoices also have to allow Offset Taxes. Your instructor has already enabled this for the class.

Tasks

• Create a new Offset Tax, Offset Status, Offset Recovery Rate and Negative Offset Rate.

• Attach the Recovery Rate to the Offset Tax Details.

• Attach the Recovery Rate to the Offset Tax.

• Make the Offset Tax Available for Transactions.

• Attach Offset Tax to Main Tax Rate Details.

• Create a Supplier with Offset Tax enabled.

• Test your Offset Tax in Accounts Payable.

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Create an Offset Tax



Field Value




Tax XX OFFSET VAT

Tax Name XX OFFSET VAT


Effective To Blank




Set as Offset Tax Selected


Field Value

Allow Tax Recovery Selected (default)



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Create an Offset Tax Status



Field Value



Tax XX OFFSET VAT

Tax Status Code XX OFFSET STATUS

Name XX OFFSET STATUS







3. Click (B) Apply.


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Create an Offset Recovery Rates and Associated Accounts



Field Value



Tax XX OFFSET VAT

Tax Recovery Rate Code XX OFFSET RECOVERY




Effective to Blank












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Create a Negative Offset Tax Rate





Tax XX OFFSET VAT



Tax Rate Code XX OFFSET RATE


Percentage Rate -17.5


Effective To Blank



Default Recovery Rate Code XX OFFSET RECOVERY

Set as Default Rate Selected



5. (B) Apply





Field Value



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Make the Offset Tax Available for Transactions and Specify the Recovery Rate Code

1. Navigate to the Tax Accounts page from the Taxes page.


Field Value



Tax XX OFFSET VAT

• Click (B) Go.



Field Value

Default Primary Recovery Rate Code XX OFFSET RECOVERY

4. Scroll back up to make the tax available for transactions.

Field Value


• Click (B) Apply (Displays the following warning: Warning: This tax does not have an exchange rate type. Are you sure you want to enable this tax?)

• Click (B) Yes.



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Attach Offset Tax to Main Tax Rate Details


2. In the Search area, enter the following information to search for your Tax Rate. Field Value




Click (I) Update.


4. Update the tax rate details: Field Value

Offset Rate Code XX OFFSET RATE

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Create a Supplier with Offset Tax Enabled




Field Value

Organization XX Offset Supplier

4. Click (B) Apply.


6. In the Update XX Offset Supplier: Address book screen, click (B) Create.


Field Value


Address Line 1 5 Silver Street

City Reading

County Berks

Postcode RG6

Address Name READING

8. Click (B) Continue (this should take you to the Create Address: Site Creation screen).



11. Verify that you receive confirmation your site has been added to the address book for your XX Offset Supplier.


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Field Value

Pay Selected


14. Click (B) Apply (you should be returned to the Update XX Offset Supplier: Address book screen).


16. Select Check (B) and Save.

17. Scroll down to the Supplier Sites and click (I) Update Payment Details.

18. Select Check (B) and Save.


20. Select Allow Tax Applicability and Allow Offset Taxes.

21. (B) Save

22. Scroll down to the Supplier Sites and click (I) Update Transaction Tax.

23. Select the Allow Tax Applicability and Allow Offset Tax boxes at this site level also.

24. (B) Save


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Test Your Offset Tax by Entering an Invoice in Payables

Tasks



Field Value


Type Standard (default)

Trading Partner XX Offset Supplier

Supplier Site Your Site

Invoice Date Today

Invoice Number XXOFFSET

Currency GBP(default)




Note: DO NOT SAVE!!


• (ST) 2 Lines


Field Value

Line 1 (default)

Type Item (default)

Amount 1000.00


Description XX OFFSET


Ship To (default)


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8. Verify that your XX VAT and XX OFFSET taxes are applied to the invoice.


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Solution - Set Up an Offset Tax

Create an Offset Tax 1. Navigate to the Create Taxes page.




Field Value




Tax XX OFFSET VAT

Tax Name XX OFFSET VAT


Effective To Blank




Set as Offset Tax Checked

3. Click (H) + Show Controls and Defaults.


Field Value




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Create an Offset Tax Status


• (T) Tax Configuration (ST) Tax Statuses



Field Value



Tax XX OFFSET VAT


Name XX OFFSET STATUS







3. Click (B) Apply.


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Create an Offset Recovery Rate and Associated Accounts


• (T) Tax Configuration (ST) Tax Recovery Rates.



Field Value



Tax XX OFFSET VAT

Tax Recovery Rate Code XX OFFSET RECOVERY




Effective to Blank




3. Click (I) Tax Accounts for the 100 percent recovery rate row.








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Create a Negative Offset Tax Rate







Tax XX OFFSET VAT



Tax Rate Code XX OFFSET RATE


Percentage Rate -17.5


Effective To Blank




Default Recovery Rate Code XX OFFSET RECOVERY




5. (B) Apply


• Click (I) Tax Accounts.



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Field Value






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Make Offset Tax Available for Transactions and Specify the Recovery Rate Code




Field Value



Tax XX OFFSET VAT

• Click (B) Go.



Field Value

Default Primary Recovery Rate Code XX OFFSET RECOVERY


Field Value


• Click (B) Apply (Displays the following warning: Warning: This tax does not have an exchange rate type. Are you sure you want to enable this tax?)

• Click (B) Yes.


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Attach Offset Tax to Main Tax Rate Details



2. In the Search area, enter the following information to search for your Tax Rate. Field Value




(B) Go

Click (I) Update.



4. Update the tax rate details: Field Value

Offset Rate Code XX OFFSET RATE

- (B) Apply

- (B) Apply

5. Verify that you receive the following confirmation “The Tax Rate has been successfully updated.”

6. Click (H) Home to return to the Home Page.

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Create a Supplier with Offset Tax Enabled





Field Value

Organization XX Offset Supplier

4. Click (B) Apply.


6. In the Update XX Offset Supplier: Address book screen, click (B) Create.


Field Value


Address Line 1 5 Silver Street

City Reading

County Berks

Postcode RG6

Address Name READING

8. Click (B) Continue (this should take you to the Create Address: Site Creation screen).



11. Verify that you receive confirmation that your site has been added to the address book for your XX Offset Supplier.


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13. In the Uses tab, do the following:

Field Value

Pay Selected


14. Click (B) Apply (you should be returned to the Update XX Offset Supplier: Address book screen).



17. Scroll down to Supplier Sites and click (I) Update Payment Details.



20. Select Allow Tax Applicability and Allow Offset Taxes.

21. (B) Save


23. Select the Allow Tax Applicability and Allow Offset Tax boxes at this site level also.

24. (B) Save

25. Click (H) Home to return to the Home Page.

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Test Your Offset Tax by Entering an Invoice in Payables

Tasks




Field Value



Trading Partner XX Offset Supplier

Supplier Site Your Site

Invoice Date Today

Invoice Number XXOFFSET

Currency GBP(defaults)




Note: DO NOT SAVE!!


• (ST) 2 Lines


Field Value

Line 1 (default)

Type Item (default)

Amount 1000.00


Description XX OFFSET


Ship To (default)

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• Click (I) Save.



8. Verify that your XX VAT and XX OFFSET taxes are applied to the invoice.


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Practice - Create a Regime to Rate the Tax Model

US Sales Tax Regime

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Practice - Create a Regime to Rate the Tax Model

Create a Tax Regime

1. Log into applications. Select the Tax Managers SSC US 01 responsibility.

2. Navigate to the Create Tax Regime: Main Details page:


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 Blank



Used to group Regimes Deselected

4. Expand the Controls and Defaults region:

5. Enter Tax Regime Controls: Field Value

Allow Tax Recovery Deselected


Deselected

Allow Tax Exemptions Selected

Allow Tax Exceptions Selected

6. Enter the Tax Regime Defaults: Field Value

Tax Currency USD



Tax Precision 2 (default)

7. Navigate to Create Tax Regime: Configuration Options page:

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8. Enter the tax regime configuration options: Field Value

Party Name SSC US 01 Note: Select the First Party Legal Entity party type.




Note: Configuration options are discussed in the Configuration Owners and Service Providers module.

9. Click (B) Finish to complete the Tax Regime Setup.


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Create a Tax

1. Navigate to the Create Tax page:

Search for the Tax Regime you created in the preceding step.

Field Value



2. Create a new tax based on the following information: Field Value

Tax Regime Code XXUSSALESTAXREGIME (default)


Tax Source Create a new tax (default)

Tax XXUSSALESTAX

Tax Name XX US Sales Tax

Tax Type SALES

Effective From 01-JAN-1950 (default)


Geography Type STATE


Parent Geography Name United States

Tax Currency USD (default)

Minimum Accountable Unit 0.01 (default)

Rounding Rule Nearest (default)


Exchange Rate Type Blank

3. Navigate to the Controls and Defaults region:

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4. Enter Tax Controls: Field Value


Deselected

Allow Tax Rounding Override Deselected

Allow Override for Calculated Tax Lines

Selected

Allow Entry of Manual Tax Lines Selected

Use Legal Registration Number Deselected

Allow Duplicate Tax Registration Numbers

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 the setup 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.”

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Create a Tax Status


2. Create a new tax status based on the following information: Field Value


Configuration Owner Global Configuration Owner (default)

Tax XXUSSALESTAX (default)

Tax Status Code XXUSSALESSTDSTATUS

Name XX US Sales Tax Standard Status



Set as Default Tax Status Selected


Default Status Effective To Leave Blank






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Create Tax Rates

1. Navigate to the Create Tax Rate page (from the Regime to Rate Flow page).

2. Create a new tax rate based on the following information: Field Value




Tax Status Code XXUSSALESSTDSTATUS (default)


Tax Rate Code XXUSSALESTAXRATE

Rate Type Percentage (default)

Percentage Rate 10





Tax Rate Name XX US Sales Tax Rate

Tax Rate Description XX US Sales Tax Rate

Internet Expenses Enabled Selected







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1. Navigate to the Create Tax Jurisdiction page.

2. Create a new tax jurisdiction based on the following information: Field Value

Tax Jurisdiction Code XXTAXJURISDICTION

Tax Jurisdiction Name XX Tax Jurisdiction


Tax XXUSSALESTAX

Geography Type STATE (pick from list!)

Parent Geography Type COUNTRY (default)

Parent Geography Name United States (default)



Geography Name NY

Precedence Level 300 (default)

Collecting Tax Authority Blank

Reporting Tax Authority Blank

Set as default Tax Jurisdiction Yes





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Creating Tax Accounts


2. Search for the Tax you created in the Practice: Create a Regime to Rate the Tax Model. Field Value



Tax XXUSSALESTAX

3. Navigate to the Tax Accounts page.

4. Enter the Ledger: Field Value

Ledger SSC US

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) Apply to return to the Tax Accounts page.

• Click (B) Apply to return to the Update Tax page.

• Click (B) Apply to return to the Taxes page.


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Define the Defaults and Tax Rules for the Steps of the Tax Determination Process

1. Navigate to the Tax Rules page.

2. Access the rule types for your tax regime and tax created in the Practice: Create a Regime to Rate the Tax Model.

Field Value



Tax XXUSSALESTAX

• Click (B) Go.

• Click (H) Expand All (the system displays the 9 steps/rule types of the tax determination process).

• Determine Place of Supply (I) Set Default Field Value

Rule Type Default Ship To (pick from list!)


• Determine Tax Applicability (I) Set Default Field Value

Rule Type Default Applicable (pick from list!)


• Determine Tax Registration (I) Set Default Field Value

Rule Type Default Bill From Party (pick from list!)


• Determine the Tax Status. Field Value

Rule Type Default XXUSSALESTDSTATUS (default)

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Note: You do not have to define a default value for the tax status because when you created your XXUSSALESSTD tax status, you specified it was to be used as the default value for the tax status in any tax rules.

• Determine Tax Rate. Field Value

Rule Type Default XXUSSALESTAXRATE

Note: You do not have to define a default value for tax rate because when you created your XXUSSALESTAXRATE tax rate, you specified it was to be used as the default value for the tax rate in any tax rules.

• Determine Taxable Basis (I) Set Default Field Value

Rule Type Default STANDARD_TB (pick from list)


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 (pick from list


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 the defaults for Direct Tax Determination or for Tax Recovery Rate because they are not relevant for your Tax Regime and Tax. You did not allow recovery for your XXUSSALESTAX tax.

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Make Tax Available for Transactions

1. Navigate to the Taxes page:

2. Search for the Tax you created in the Practice: Create a Regime to Rate the Tax Model. Field US Sales and Use Tax



Tax XXUSSALESTAX

• Click (B) Go.

• Click (I) Update on the XXUSSALESTAX row.

3. Make the tax available for transactions: Field US Sales and Use Tax

Make Tax Available for Transactions Selected

• Click (B) Apply (Displays the warning – Warning: This tax does not have an exchange rate type. Are you sure you want to enable this tax?)

• Click (B) Yes.



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To open the accounting Period in Accounts Payable, use the Payables, SSC US OU 01 responsibility to 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, use the General Ledger, SSC US responsibility 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 last previously opened period and the target period.

Tasks

1. Using the Payables, SSC US OU 01 responsibility, navigate to the Invoices form.


Operating Unit SSC US 01 (default)


Trading Partner Advantage Corp.

Supplier Site US CHECK

Invoice Date Instructor Assigned.

Invoice Number XXAPTAXTEST001

Currency USD (default)


GL Date (default)


Note: Do Not Save!!


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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)



Note: You may see other Tax Regimes tax as well as your own. In order to validate your invoice, 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 (10 percent of the 1000.00 line amount).

9. With your cursor on the line for your XXUSSALESTAXREGIME, navigate to the Tax Details window.

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.

12. Click (T) 1 General in the bottom of the Invoice workbench screen, and then navigate to the Actions screen.

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13. Validate your invoice:

Note: If your invoice does not validate because the distributions are not equal to the invoice amount, adjust the invoice amount to match and re-run the validation process.

14. Navigate to the Actions window.

15. Create accounting on the invoice:


17. Click (M) Reports View Accounting.

18. In the Subledger Journal Entry Lines screen, verify that you see (as a minimum) the following accounting (you may see additional accounting lines, depending on taxes applied to your transaction):


Accounted DR

Accounted CR

001.100.63580.0000.730.000.000 Your date Item Expense 1000.00

001.200.22100.0000.000.000.000 Your date Liability 1000.00

001.100.63920.0000.730.000.000 Your date Non-recoverable tax

100.00


19. Close the Invoice Workbench form.

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Note: In order to be able to run the Create Accounting Process for Receivables, the accounting period 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 01 responsibility, navigate to Control Accounting Open/Close Periods. Click (B) Open Next Period until the Latest Open period changes to the current period.

To open the accounting period in General Ledger, use the General Ledger, SSC US responsibility 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 last previously opened period and the target period.

1. Using the Receivables, SSC US OU 01 responsibility, navigate to the Transactions form.


Source Manual-Other (default)





Type Invoice (default)

Legal Entity SSC OU 01 (default)



Ship To ABC Application Software (be sure to use the New York address)

5. Enter payment terms of 2/10, Net 30 (normally this information defaults from the customer record).

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Num 1

Description XXTAXTEST001

UOM Each

Quantity 1

Unit Price 1000.00





Tax: XXUSSALESTAX

Jurisdication: XXTAXJURISDICTION



Rate: 10.000

Tax Amount: 100.00




14. Generate the accounting for the Receivables invoice:

15. In the Create Accounting window, select Create Final Accounting Post to GL.


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17. View the accounting by selecting (M) Tools View 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 your transaction).


Accounted DR

Accounted CR

001.100.12100.0000.000.000.000 Your date Receivable 1100.00

001.100.41000.0000.425.000.000 Your date Revenue 1000.00

001.100.25300.0000.000.000.000 Your date Tax 100.00

19. The Receivable and Revenue accounts were determined from AutoAccounting setup in the Accounts Receivable module. The Tax account was derived from the tax account setup for your XXUSSALESTAX tax.


20. Click (H) Close Window to return to the Transactions form

21. Close the Transactions form.

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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 OU 01 responsibility, navigate to Setup/Financials/Accounting/Control Purchasing Periods.


1. Using the Purchasing, SSC US OU 01 responsibility, navigate to the Purchase Order form.

2. Set your session preferences.

3. In the Purchase Order Preferences form, enter: Field Value

Charge Account 001.100.63580.000.000.000


• Verify that you receive a message, “New Preferences now in effect.”

• Close the Purchase Order Preferences screen.

4. In the Purchase Orders screen, enter a purchase order: Field Value



Supplier Advantage Corp.

Site US CHECK

Ship – To SSC US OU 01 – 002

Bill – To SSC US OU 01 - 002

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Num 1 (default)


Category MISC.MISC

Description Copy Paper

UOM Each

Quantity 1

Price 100.00


6. Click (I) Save to save your purchase order.

7. Navigate to Manage Tax.

8. In the Tax: Standard Purchase Order XXX screen, click (H) Show in the Details region for line 1 of your purchase order.

9. Verify that you see the following for your tax. Field Value


Tax XXUSSALESTAX

Tax Status Code XXUSSALESSTDSTAUS



Percentage Rate 10

Tax Amount 10

10. You may also see taxes from other students in the class.

11. Click (H) Close Window to return to the purchase order form.

12. Close the purchase order form.

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Test Your Tax Setup by Entering a Sales Order in Order Management

1. Using the Order Management, SSC US OU 01 responsibility, navigate to the Sales Order form.

2. In the Sales Orders form, enter:

Field Value

Customer ABC Application Software

Order Type SSC US OU 01 Order

3. Click the (T) Line Items tab.

4. In the Line Items tab, enter:

Field Value

Ordered Item P0110

Qty 1

UOM Ea

Unit Selling Price 15.00 (default)

5. Click the (B) Actions button.

6. Select Calculate Tax from the list of values.

7. In the Line Items tab, click the (ST) Pricing Subtab.

8. Scroll across in the pricing subtab and verify that the tax amount appears as 2.78. (Additional tax may have been calculated depending upon the tax settings on the instance.)


10. Select View Tax Details.

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11. In the Tax Details screen, verify that you see the following:

Tax Regime Tax Tax Status Tax Rate

Code Rate Amount

XXUSSALESTAXREGIME XXUSSALESTAX XXUSSALES

STDSTATUS

XXUSSALES

TAXSTDRATE

10 1.50

US-SALES-TAX-101 STATE STANDARD STANDARD 4.25 .64

US-SALES-TAX-101 COUNTY STANDARD STANDARD 0 0

US-SALES-TAX-101 CITY STANDARD STANDARD 4.25 .64

(Additional tax may have been calculated depending upon the tax settings on the instance.)

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Solution - Create a Regime to Rate theTax Model

Create a Tax Regime

1. Log into applications. Select the Tax Managers SSC US 01 responsibility.

2. Navigate to the Create Tax Regime: Main Details page:



3. Enter a new tax regime based on the following information: Field Value


Name XX US Sales Tax Regime

Regime Level Country


Parent Regime Code 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


Deselected

Allow Tax Exemptions Selected

Allow Tax Exceptions Selected

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6. Enter Tax Regime Defaults: Field Value

Tax Currency USD




7. Navigate to Create Tax Regime: Configuration Options page:


8. Enter tax regime configuration options: Field Value

Party Name SSC US 01 Note: Select the First Party Legal Entity party type.




Note: Configuration options are discussed in the Configuration Owners and Service Providers module.

9. Click (B) Finish to complete the Tax Regime Setup.


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Creating 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



• Click (B) Go.

• Click (I) Regime to Rate Flow.

• Click (I) Create Tax on the Regime Level Type row.

2. Create a new tax based on the following information: Field Value



Tax Source Create a new tax (default)

Tax XXUSSALESTAX

Tax Name XX US Sales Tax

Tax Type SALES



Geography Type STATE


Parent Geography Name United States

Tax Currency USD (default)

Minimum Accountable Unit 0.01 (default)

Rounding Rule Nearest (default)


Exchange Rate Type Blank

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3. Navigate to the Controls and Defaults region:

• Click (H) Show Controls and Defaults.

4. Enter Tax Controls: Field Value


Deselected

Allow Tax Rounding Override Deselected

Allow Override for Calculated Tax Lines

Selected

Allow Entry of Manual Tax Lines Selected

Use Legal Registration Number Deselected

Allow Duplicate Tax Registration Numbers

Deselected

Allow Multiple Jurisdictions Deselected

Tax Accounts Creation Method Create Tax Accounts (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 the setup 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.”

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Creating a Tax Status



• Click (I) Create Tax Status (on Tax Level Type row).

2. Create a new tax status based on the following information: Field Value




Tax Status Code XXUSSALESSTDSTATUS

Name XX US Sales Tax Standard Status



Set as Default Tax Status Selected


Default Status Effective To Leave Blank







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Create Tax Rates



• Click (I) Create Tax Rate (on Status Level Type row).

2. Create a new tax rate based on the following information: Field Value




Tax Status Code XXUSSALESSTDSTATUS (default)



Rate Type Percentage (default)

Percentage Rate 10





4. Enter the 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






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• Click (B) Apply to return to the Create Tax Rate page.



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1. Navigate to the Create Tax Jurisdiction page:

• (T) Tax Configuration (ST) Tax Jurisdictions.


2. Create a new tax jurisdiction based on the following information: Field Value


Tax Jurisdiction Name XX Tax Jurisdiction


Tax XXUSSALESTAX

Geography Type STATE (pick from list!)

Parent Geography Type COUNTRY (default)

Parent Geography Name United States (default)



Geography Name NY

Precedence Level 300 (default)

Collecting Tax Authority Blank

Reporting Tax Authority Blank

Set as default Tax Jurisdiction Yes




• Click (B) Apply to return to the Tax Jurisdictions page.


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Creating Tax Accounts



2. Search for the Tax you created in the Practice: Create a Regime to Rate the Tax Model. Field Value



Tax XXUSSALESTAX

• Click (B) Go.

• Click (I) Update on the Tax row.

3. Navigate to the Tax Accounts page:


4. Enter the Ledger: Field Value

Ledger SSC US


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) Apply to return to the Tax Accounts page.

• Click (B) Apply to return to the Update Tax page.

• Click (B) Apply to return to the Taxes page.


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Define Defaults and Tax Rules for the Steps of the Tax Determination Process

1. Navigate to the Tax Rules page:


2. Access the rule types for your tax regime and tax created in the Practice: Create a Regime to Rate the Tax Model.

Field Value



Tax XXUSSALESTAX

• Click (B) Go.

• Click (H) Expand All (the system displays the nine steps/rule types of the tax determination process).

• Determine Place of Supply (I) Set Default Field Value

Rule Type Default Ship To (pick from list!)


• Determine Tax Applicability (I) Set Default Field Value

Rule Type Default Applicable (pick from list!)


• Determine Tax Registration (I) Set Default Field Value

Rule Type Default Bill From Party (pick from list!)


• Determine the Tax Status. Field Value

Rule Type Default XXUSSALESTDSTATUS (default)

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Note: You do not have to define a default value for tax status because when you created your XXUSSALESSTD tax status, you specified it was to be used as the default value for the tax status in any tax rules.

• Determine the Tax Rate. Field Value

Rule Type Default XXUSSALESTAXRATE

Note: You do not have to define a default value for tax rate because when you created your XXUSSALESTAXRATE tax rate, you specified it was to be used as the default value for the tax rate in any tax rules.

• Determine Taxable Basis (I) Set Default Field Value

Rule Type Default STANDARD_TB (pick from list)


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 (pick from list


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 Recovery Rate because they are not relevant for your Tax Regime and Tax. You did not allow recovery for your XXUSSALESTAX tax.

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Make Tax Available for Transactions

1. Navigate to the Taxes page:


2. Search for the Tax you created in the Practice: Create a Regime to Rate the Tax Model. Field US Sales and Use Tax



Tax XXUSSALESTAX

• Click (B) Go.

• Click (I) Update on the XXUSSALESTAX row.

3. Make the tax available for transactions: Field US Sales and Use Tax

Make Tax Available for Transactions Selected

• Click (B) Apply (Displays the warning – Warning: This tax does not have an exchange rate type. Are you sure you want to enable this tax?)

• Click (B) Yes.



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To open the accounting Period in Accounts Payable, use the Payables, SSC US OU 01 responsibility to navigate to Setup Calendar Accounting Accounting Periods. Query for the current period and change its status to open.


Tasks

1. Using the Payables, SSC US OU 01 responsibility, navigate to the Invoices form.





Trading Partner Advantage Corp.

Supplier Site US CHECK

Invoice Date Instructor Assigned.

Invoice Number XXAPTAXTEST001



GL Date (default)


Note: Do Not Save!!


• (ST) 2 Lines

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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)


• Click (I) Save.



Note: You may see other Tax Regimes’ tax as well as your own. In order to validate your invoice, 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 the taxes that are applied.

8. Verify that the tax calculation process applied your XXUSSALESTAX tax for 100.00 (10 percent of the 1000.00 line amount).

9. With your cursor on the line for your XXUSSALESTAXREGIME, navigate to the Tax Details window.

• Click (B) Tax Details.

10. Verify that you see the following information for your tax in the Tax Details window: Field Value


Tax: XXUSSALESTAX




Rate: 10.000

Tax Amount: 100.00

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11. Close the Tax Details window.


12. Click (T) 1 General in the bottom of the Invoice workbench screen, and then navigate to the Actions screen.

• Click (B) Actions… 1.

13. Validate your invoice:

• Select the Validate check box.

• Click (B) OK.

Note: If your invoice does not validate because the distributions are not equal to the invoice amount, 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 Accounting check box.

• Select the Final Post button.

• Click (B) OK.


17. Click (M) Reports View Accounting.

18. In the Subledger Journal Entry Lines screen, verify that you see (as a minimum) the following accounting (you may see additional accounting lines, depending on taxes applied to your transaction):


Accounted DR

Accounted CR

001.100.63580.0000.730.000.000 Your date Item Expense 1000.00


001.100.63920.0000.730.000.000 Your date Non-recoverable tax

100.00


19. Close the Invoice Workbench form.

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Note: In order to be able to run the Create Accounting Process for Receivables, the accounting period 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 01 responsibility, navigate to Control Accounting Open/Close Periods. Click (B) Open Next Period until the Latest Open period changes to the current period.


1. Using the Receivables, SSC US OU 01 responsibility, navigate to the Transactions form.



Source Manual-Other (default)





Type Invoice (default)

Legal Entity SSC OU 01 (default)


• (ST) Main


Ship To ABC Application Software (be sure to use the New York address)

5. Enter payment terms of 2/10, Net 30 (normally this information defaults from the customer record).

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• (ST) Main


Num 1

Description XXTAXTEST001

UOM Each

Quantity 1

Unit Price 1000.00


• Click (I) Save.


• Click (B) Tax.



Tax: XXUSSALESTAX




Rate: 10.000

Tax Amount: 100.00






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14. Generate the accounting for the Receivables invoice:


15. In the Create Accounting window, select Create Final Accounting Post to GL.

• Click (B) OK.



17. View the accounting by selecting (M) Tools View Accounting.



Accounted DR

Accounted CR

001.100.12100.0000.000.000.000 Your date Receivable 1100.00

001.100.41000.0000.425.000.000 Your date Revenue 1000.00

001.100.25300.0000.000.000.000 Your date Tax 100.00

19. The Receivable and Revenue accounts were determined from AutoAccounting setup in the Accounts Receivable module. The Tax account is derived from the tax account setup for your XXUSSALESTAX tax, if that is the way AutoAccounting is defined.



21. Close the Transactions form.

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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 OU 01 responsibility, navigate to Setup/Financials/Accounting/Control Purchasing Periods.


1. Using the Purchasing, SSC US OU 01 responsibility, navigate to the Purchase Order form.

• (N) Purchase Orders Purchase Orders

2. Select (M) Tools Preferences to set your session preferences.

3. In the Purchase Order Preferences form, enter: Field Value

Charge Account 001.100.63580.000.000.000


• 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



Supplier Advantage Corp.

Site US CHECK

Ship – To SSC US OU 01 – 002

Bill – To SSC US OU 01 - 002

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Num 1 (default)


Category MISC.MISC

Description Copy Paper

UOM Each

Quantity 1

Price 100.00


6. Click (I) Save to save your purchase order.

7. Navigate to (M) Actions Manage Tax.

8. In the Tax: Standard Purchase Order XXX screen, click (H) Show in the Details region for line 1 of your purchase order.

9. Verify that you see the following for your tax. Field Value


Tax XXUSSALESTAX

Tax Status Code XXUSSALESSTDSTAUS



Percentage Rate 10

Tax Amount 10

10. You may also see taxes from other students in the class.

11. Click (H) Close Window to return to the purchase order form.

12. Close the purchase order form.

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Test Your Tax Setup by Entering a Sales Order in Order Management

1. Using the Order Management, SSC US OU 01 responsibility, navigate to the Sales Order form.

• (N) Orders, Returns Sales Orders

2. In the Sales Orders form, enter:

Field Value

Customer ABC Application Software (verify that the 536 Madison Avenue, New York, NY address default

Order Type SSC US OU 01 Order

3. Click the (T) Line Items tab.

4. In the Line Items tab, enter:

Field Value

Ordered Item P0110

Qty 1

UOM Ea

Unit Selling Price 15.00 (default)


6. Select Calculate Tax from the list of values.

7. In the Line Items tab, click the (ST) Pricing subtab.

8. Scroll across in the pricing subtab and verify that the tax amount appears as 2.78. (Additional tax may have been calculated depending upon the tax settings on the instance.)


10. Select View Tax Details.

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11. In the Tax Details screen, verify that you see the following:

Tax Regime Tax Tax Status Tax Rate

Code Rate Amount

XXUSSALESTAXREGIME XXUSSALESTAX XXUSSALES

STDSTATUS

XXUSSALES

TAXSTDRATE

10 1.50

US-SALES-TAX-101 STATE STANDARD STANDARD 4.25 .64

US-SALES-TAX-101 COUNTY STANDARD STANDARD 0 0

US-SALES-TAX-101 CITY STANDARD STANDARD 4.25 .64

(Additional tax may have been calculated depending upon the tax settings on the instance.)

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dbmanagement.infodbmanagement.info/Books/MIX/r12_oracle_e-business... · Copyright © 2009, Oracle. All rights reserved. R12 Oracle E-Business Tax Fundamentals Table of Contents iii