1. Get rid of all advertisements and get unlimited access to documents by upgrading to Premium Membership. Upgrade to Premium Now and also get a Premium Badge!

Tax is not calculated automatically for the Transactions in AR

Discussion in 'Oracle Financials' started by niranjan141, Sep 21, 2012.

  1. niranjan141

    niranjan141 Active Member

    Messages:
    12
    Likes Received:
    0
    Trophy Points:
    125
    I am done with the setup's in e-business tax. Later on when I entered a Transaction and save it, I could see tax was not calculated automatically. For tax calculation, I need to explicitly give all the details viz:Regime, Tax, Jurisdiction, Status , Rate ( by navigating to the window 'Tax' from Transaction lines window).

    Can anyone suggest me how to achieve ' Tax calculation automatically '. Tax should be calculated automatically when I save the Transaction.
     
  2. Rajesh Katika

    Rajesh Katika Active Member

    Messages:
    6
    Likes Received:
    0
    Trophy Points:
    75
    Hi Niranjan,

    Please check the following things:-

    1. Have you enabled Make tax available for transactions in Tax.
    2. Check the party(customer) account provided under parties tab
    3. Verify your Tax rules such that on which level that you have provided for
    Direct tax rate determination and Determine place of supply and also make note that determine tax applicability is set to Applicable
    4. Finally verify is the tax setup available for Operating and Legal entity level under Defaults and controls.

    Thanks & Regards
    Rajesh Katika
     
  3. niranjan141

    niranjan141 Active Member

    Messages:
    12
    Likes Received:
    0
    Trophy Points:
    125
    Hi Rajesh,

    I am able to select all the details manually and the Tax is getting calculated. But how can I make Tax calculation automatically i.e when I enter the line information & save, tax should be automatically calculated.
     
  4. Rajesh Katika

    Rajesh Katika Active Member

    Messages:
    6
    Likes Received:
    0
    Trophy Points:
    75
    Hi Niranjan,

    I hope you done the setups starting from Regime till tax rate and simultaneously set tax rules.The above steps which i mentioned for automatic tax calcuation only. Please verify your setups and then assign the tax rate in the lines and complete the transaction, finally you can see the tax amount is calculated.

    Thanks & Regards
    Rajesh Katika
     
  5. niranjan141

    niranjan141 Active Member

    Messages:
    12
    Likes Received:
    0
    Trophy Points:
    125
    Hi Rajesh,

    Below are the deatils :

    1. Have you enabled Make tax available for transactions in Tax. – Yes
    2. Check the party(customer) account provided under parties tab – Please explain the step in detail
    3. Verify your Tax rules such that on which level that you have provided for
    Direct tax rate determination and Determine place of supply and also make note that determine tax applicability is set to Applicable – Yes, all rules are defined.
    4. Finally verify is the tax setup available for Operating and Legal entity level under Defaults and controls. – Tax set up was done for a leagal entity. Under defaults & controls I am done with the setup for Receivables for Transactions.

    I really apprecaite your inputs

    Thanks
    Niranjan