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R12:Tax Codes

Discussion in 'Oracle Financials' started by arjun, Sep 6, 2009.

  1. arjun

    arjun Active Member

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    We have recently migrated to 12.0.6 from
    11i: In AP the base tax codes(AP>Setup>Tax>Tax Codes) I can attach at Invoice header level or invoice Distribution level in tax code field

    R12: After migration I can see all the base apps tax codes defined in 11i in Tax manager responsibility.

    But I in R12 in invoice workbench I cant find any filed where to attach these tax codes

    Please any one clear my above confusion

  2. apps_expert

    apps_expert Forum Expert

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    Chennai, India
    Have you completed the mandatory steps required to set up taxes in R12?

    For your reference:

    Step 1: Create the Tax Regime

    The tax regime is the highest/ultimate level that taxes are rolled up to, typically, a specific country. In this step, the Controls and Defaults must be set. The Control section outlines 4 options. Once the tax is made live, the control options cannot be changed.

    The Defaults section will default as applicable to the tax, status, jurisidiction, and tax rate levels, but they can be changed at each level.

    Step 2: Create the Tax

    One Tax Regime can have multiple taxes defined under it. The tax type, e.g. sales, VAT, use, is determined when the tax is set up. Taxes can be set up by geography type, which allows for taxes at different levels.. For example, in the US, there is can be a tax levied at the State level, one at the County level, and one at the City level.

    Step 3: Create the Tax Status

    This is used primarily in the UK to define reduced rate, zero rate, etc. taxes. All taxes must have at least one tax status defined, and one of those must have the "Set as Default Status" option checked.

    Step 4: Create the Tax Jurisdiction

    A tax jurisdiction is a geographic area for which a tax is levied, e.g.Colorado, California, Florida, El Paso County, Los Angeles.

    There must be at least one Tax Jurisdiction for each Tax Status with the "Set as default Tax Jurisdiction" selected and the "Default Effective Date" supplied.

    Step 5: Create the Tax Rate

    Create specific tax rates to be applied for a geography. There must be at least one default tax rate. The tax accounts are also set up in this step.

    Step 6: Define Tax Rules

    Set defaults for the following rule types:

    Place of Supply, Registration, Taxable Basis, Calculate Tax Amounts

    Step 7: Make the Tax Live for Transactions

    Return back to the Tax created in step 2, and select the Make Tax Available for Transactions option. If it is not available to be checked, the tax is not set up correctly. Any missed setups will need to be completed before this can be setup.
  3. anna575

    anna575 Active Member

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    Hey, Really nice information of Tax codes. I completely agreed. All of these are very useful for us. Therea are more information about how to create Tax Status which is more important for everyone.