Cv40 Supplier tax EBTAX.docx

7/31/2019 Cv40 Supplier tax EBTAX.docx

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1.To update the table of contents, put the cursor anywhere in the table and press [F9]. To changethe number of levels displayed, select the menu option Insert >Index and Tables, make sure theTable of Contents tab is active, and change the Number of Levels to a new value.

2.

Conversion Data Elements

Below is the Conversion Data Elements that need to be populated in order for eBtax to apply tax ontransactions appropriately in conjunction with the setups BR100 that were defined.

Fiscal Classification Codes:

Fiscal Classification Codes in eBtax are used to identify Transaction, Product or Trading Partnerfor the Tax Engine to apply Tax.

As part of the eBTax Setup 3 Party Fiscal Classification codes will be setup

Itron Border States ERS SuppliersThese 3 Party Fiscal Classifications has to be entered at the Supplier sites level only(irrespective of the Site purpose)Supplier management Group and Tax Services Department will identify the Vendors who need to

be assigned with the Party Fiscal Classification codes.The Party Fiscal Classification has to be populated with the following ValuesEx: Navigate > Supplier > Tax Details > Select the Site name > Click on Update Transaction Taxand Assign the Fiscal Classification for Supplier Site level

The Effective date should always be 01-Dec-08Changed on Aug 5, 2009The assigning of Party Fiscal Classifications will be a programmatic effort and the names ofthe vendors will be provided by Supplier Management Group.Changed on Aug 13, 2009

A decision has been taken to assign the party fiscal classification to supplier manually andConversion Cut over document has been updated appropriately.Changed on Nov 04, 2009


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Provide the list of all ERS supplier - Run the ZX Party Tax Profile Discoverer View from TaxFolder to get the Vendor Site Code Like '%ERS%' and find out the ERS vendors. OR get the SelfBilling Flag vendor sites from AP suppliers and assign the Fiscal Classifiation code accordingly

Allow Tax Applicability:

Allow Tax Applicability Check box controls the application of eBTax for all Vendors. If this checkbox is not checked then eBtax will not apply taxes on this supplier.This check box has to be applied for all the Vendors.Navigation > Suppliers > Tax and Reporting > Supplier Header Level

This check box is available at the Supplier Header Level level OnlyNavigation > Suppliers > Tax and Reporting > Update Transaction Tax (Supplier Site Level)

Enable the Caculate Tax Flag to Yes as per the above Screenshot

Tax Registration Updates for vendors

Tax Registrations determine the applicability of the taxes i.e. , Sales tax or Use tax.Tax Registration has to be populated for for all the vendors at the Site level ONLYNavigation > Suppliers > Tax Details > Update Transaction Tax > Registration > Supplier SiteLevelThe following information is required to be populated at the Tax Registation levels for SupplierSites

Tax Regime Code = DAR Tax Registration Status = Registered / Not Registered


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Effective Date = 01-Dec-08

The Supplier Management Group and the Tax Services Department has to determine the TaxRegistration details of all suppliers.The following approach is advised:Since Registration is applicable for all AZ Registered Vendors (i.e. Vendors Registered in AZ or

who have a PO Supplier site with an Arizona address) it is recommended to identify all the

Vendors who have the value in the Address field of either the Supplier and or any PO Supplier sitelevel State = Arizona.

After identifying the vendors with the above condition an extract has to be provided to theSupplier Management Group and the Tax Services Department to take decision on who needs to

be updated with Tax Registration Details.EX: Vendor = Cooper Power Systems is an out of State Vendor. It has following sites:

1. Phoenix PO site2. Milwaukee PO Site3. Dallas AP site4. other Out of State PO SitesFor the above case since the Phoenix site belongs to AZ all other out of state sites should also bepopulated with Tax Registration Details as mentioned above because the vendor has presence in

AZ state and there exists nexus for the Arizona tax authority to determine tax as sales tax.Changed on Aug 6, 2009Currently the Supplier conversion program populates the Registration information for vendors in

AZ who has PO sites. It has been identified during ST1 Checkout that there exists Vendors withAP only sites with presence in AZ.EX: Green Valley Municipal Property Corp

Prescott Lock & Safe


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In order to address this following approach is advised.

Check for all vendors who have AZ Address irrespective of the site purpose. If the Vendor Site has AZ address then populate the Registration Details such as Tax

Regime, Tax Registration Status and Effective date accordingly The Registration Status will have to be set as Registered This update has to be done for both active and inactive AZ vendors.

Changed on Aug 5, 2009Navigate to Suppliers > Organization> Tax Financial Information RegionIf the value Tax Registration Num is populated set all the supplier sites as registeredirrespective of the state in which they have registration.Business Justification: Supplier Management Group will enter the registration information inthis field based on the new vendor registration form. This registration numbers tells that thesupplier has nexus in the state of AZ and supplier has responsibility to collent the Sales tax.

Set for Self Assessment

In R12 Use tax is identified by Tax engine when the Self Assessment Flag is set for the Vendors.The Set for Self Assessment / Reverse Charge check box is available only at the supplier headerlevelNavigation > Suppliers > Tax and Reporting > Supplier Header Level

The Supplier Management Group and the Tax Services Department will determine the Use Taxsuppliers and the self assessed check box has to be checkedThe following approach is advised:Since Use tax is applicable for out of State Vendors (i.e. Vendors not Registered in AZ) it isrecommended to identify all the Vendors who dosent have the value in the Address field of

Supplier site level State Arizona.

After identifying the vendors with the above condition an extract has to be provided to theSupplier Management Group and the Tax Services Department to take decision on who needs to

be updated with check box.EX: Vendor = Cooper Power Systems is an out of State Vendor. It has following sites:

5. Phoenix PO site6. Milwaukee PO Site7. Dallas AP site


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8. other Out of State PO SitesFor the above case since the Phoenix site belongs to AZ all other out of state sites should not bepopulated with Self Assessed flag as mentioned above because the vendor has presence in AZstate and there exists nexus for the Arizona tax authority to determine tax as sales tax.Result: This should be applied to all vendors who are not registered in AZ. The vendors would be

validated by the Supplier Management Group & Tax Department for data integrity purposes

06-April-2010Per SR # 3-1618460861 the Self assessed flag has no relevance on calculation of the Use Tax forNot Registered vendors. Hence this is being removed from the supplier conversion program

Vendor Address Details County Field

Per Geography hierarchy eBusiness Tax applies tax automatically on transactions based on theState, County, City and Postal Code Values Populated at the Supplier Address. Supplier

Address refers to Site levelSince the Geography has the county field there are number of suppliers in 11.5.7 who were notpopulated with the county field in their address.Hence the County fields of the suppliers need to be populated for all the registered suppliers in

the state of Arizona.Navigation > Supplier > Update Address Book > Click on Update pencil

The Supplier Management Group and the Tax Services Department has to determine theappropriate county field based on the City value already available in the suppliers address book.The following approach is advised:Since county field has to be populated for all AZ Vendors (i.e. Vendors in AZ) it is recommendedto identify all the Vendors who have the value in the Address field of Supplier and Supplier sitelevel State = Arizona.


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After identifying the vendors with the above condition an extract has to be provided to theSupplier Management Group and the Tax Services Department to take decision on which countyeach city belongs.Tax Services Department has a Table which identifies what city belongs to a county in AZThis table can be used as a lookup while populating the address of suppliers with appropriatecounty names.

Exclude Freight from Discount

Currently Freight is being considered while calculating Discounts. However as part of therequirements Discount needs to be calculated only on the ITEM TYPE but not the Freight Type.Hence it was decided to exclude Freight from calculation of discount.The Exclude Freight from Discount is a check box at the Suppplier Header Level & Supplier SiteLevel (all sites)Navigation > Suppliers > Invoice Management > Supplier Header Level

All the vendors have to be checked with the Exclude Freight from Discount.Navigation > Suppliers > Invoice Management > Supplier Sites>Terms Tab>check ExcludeFreight From Discount

Supplier Contact Address Link

Included this change because of the following reasons:


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Currently the supplier sites have contact details filled in. The supplier sites will have a single ormultiple contacts.In R12 when a supplier is selected in the iProcurment requisition the LOV will display the Sites

by the number of contacts linked to the site.This is causing problems to the users in selecting appropriate site.Maintaining out dated contact information:

Another reason for delinking the supplier is because of outdated contact information.Added Sep 30 2009Suppliers will migrate with Supplier Contact Address(es) linked to each Contact. We do not

want this link. Will need to run XXUNS Supplier Contacts Address Removal request toremove link from ALL supplier contacts.

Navigation>Suppliers>Contact Directory>Update Contact>Addresses For the Contact

Supplier Contact Information Migrated PO(s)

Included this change because of the following reasons:If the supplier contact information is on migrated POs the supplier contact link cannot beremoved.

Added Sep 30 2009Supplier Contact Information at PO header for migrated PO(s) will need to be removed. Willneed to run XXUNS: Update Open PO Contacts to remove from ALL migrated PO(s)regardless of status.Navigation>Purchase Order Summary>Purchase Order Number>Find>Open>Contact


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Application Business Object Reference Information

In each of the following sections, a table maps the business objects for R12.0.6 to the Oracle Applicationtables Column (2) suggests whether the business object is a candidate for programmatic conversion. In

column (4), the standard Oracle interface is documented if one exists for facilitating the conversion of aspecific business object.

1.2.

3.

4.

5.

If a business object is a candidate for conversion, determine whether the business object shouldbe converted programmatically or manually. The primary determining factor for this decision

should be the volume of data being converted. This information is available in Data ConversionRequirements and Strategy (CV.010).

Man is the key for manual and Prog is the key for programmatic. Refer to the documentationfor the software release you are implementing for a listing of standard Application ProgramInterfaces (APIs) provided.

1.

Refer to the Technical Reference Manual (TRM) for information regardingthe Production Table Names and Foreign Key Table Names for the business objects beingconverted.

Replace the sample data in the table with information applicable to your project.

Business Object Man/Prog

OwnedBy

Open Interface Production TableName(s)


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Setup ObjectsAllow Tax Applicability P ZX NAParty Fiscal Classifications M ZX NASet for Self Assessment P ZX NAExclude Freight from Discount P AP NATax Registration P ZX NA ZX_PARTY_TAX_PROFILES County Field P AP

NA

Transaction EntitiesRemove OffSet Taxes P ZX NATax Classifications P ZX NARemove the Input Tax Classification in Items P INVSupplier Contact Address Link P APRemove

Data Clean-up

Below is a description of the data clean-up efforts required for the conversionof:

Remove Offset Taxes Check Box

Because of Upgrade to R12 it is no more required to use the Offset taxes to achieve the Use TaxFunctionaility. Use tax Functionaility is assessed via Self Assessment Tax.Navigation > Suppliers > Tax and Reporting > Supplier Header levelUncheck the Allow Offset Taxes Check box to Null

Navigation > Suppliers > Tax and Reporting > Update Transaction Tax > Supplier Site levelFlag the Allow Offset Taxes Check box to Null irrespective of the site purpose

This has to be done to all the suppliers

Remove Input Tax Classification Codes in Suppliers


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Because of Upgrade to R12 it is no more required to use the Input Tax Classification Codes forapplication of taxes to Catalogue goods.Navigation > Suppliers > Tax and Reporting > Supplier Header levelThe Tax Classification for all the Suppliers has to be made to Null

Navigation > Suppliers > Tax and Reporting > Update Transaction Tax > Supplier Site levelThe Tax Classification for all the Suppliers sites has to be made to Null irrespective of the sitepurpose

Remove Input Tax Classification Codes from Items

Because of Upgrade to R12 it is no more required to use the Input Tax Classification Codes forapplication of taxes to Cataloge goods.Navigation > Items > MasterThe Input Tax Classification Code for all the Items has to be made to Null at both at Masterlevel and Organization level


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It is important to note that the item data clean up with respect to

cleaning the Tax classification code in the purchasing tab should NOT be

done until the User Item Type customization is complete

Open and Closed Issues for this Deliverable

1.Add open issues that you identify while writing or reviewing this document to the open issuessection. As you resolve issues, move them to the closed issues section and keep the issue ID thesame. Include an explanation of the resolution.

When this deliverable is complete, any open issues should be transferred to the project- orprocess-level Risk and Issue Log (PJM.CR.040) and managed using a project level Risk and Issue

Form (PJM.CR.040). In addition, the open items should remain in the open issues section of thisdeliverable, but flagged in the resolution column as being transferred.

Open Issues

ID Issue Resolution Responsibility TargetDate

ImpactDate

1001 Tax Registrations for Out ofState vendors who has presencein AZ

To enable Tax Registration as yes forall the vendors and to make changes tosetup

1002 Data Clean up Input Tax

Classification Code inPurchasing Tab of itemdefinition

Data Clean up Input Tax

Classification Code in Purchasing Tabof item definition by customization

1003 Exclude Freight from Discount This document covers the supplierheader level enabling only. But not thesite level enabling.

1004 Party Fiscal Classification Codes This has to be assignedProgramatically

1005 Tax Registration for Out of Statevendors

This has to be assignedProgramatically

Closed Issues

ID Issue Resolution Responsibility TargetDate

ImpactDate

1001 Tax Registrations forOut of State vendorswho has presence inAZ

To enable Tax Registration asyes for all the vendors and tomake changes to setup

1002 Data Clean up InputTax Classification Codein Purchasing Tab of

Data Clean up Input TaxClassification Code inPurchasing Tab of item


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item definition definition by customization

1003 Exclude Freight fromDiscount

The Exclude Frieght fromDiscount Flag will bepopulated at the SupplierHeader & Site Level to allSites(AP & PO)

1004 Party FiscalClassification Codes


1005 Tax Registration forOut of State vendors


Documents

Cv40 Supplier tax EBTAX.docx