08/12/2017 Document 473066.1 How To Setup Expert Tax Rules on eBTax (Doc ID 473066.1) In this Document Goal Solution 1. Tax Rules in Oracle E-Business Tax: Overview 2. How Tax Rules Work (An Example) a. Understanding Tax Determining Factors b. Setting Up A Determining Factor Set c. Setup a Tax Condition Class d. Expert Rule APPLIES TO: Oracle Payables - Version 12.2.4 to 12.2.4 [Release 12.2] Oracle E-Business Tax - Version 12.0 to 12.1 [Release 12.0 to 12.1] Oracle Payables - Version 12.1.3 to 12.1.3 [Release 12.1] Information in this document applies to any platform. GOAL How does one setup Tax Rules using Expert Tax Rules? SOLUTION NOTE: Oracle strongly recommend to review the Oracle documentation on eBTax and do several exercises to review the functionality. ORACLE DOCUMENTATION: Oracle® E-Business Tax User Guide Release 12 Part No. B25959-01 Setting Up and Using Tax Rules 1. Tax Rules in Oracle E-Business Tax: Overview The E-Business Tax tax determination process uses your tax configuration setup and the details on the transaction to determine: • Which taxes apply to the transaction. • How to calculate the tax amount for each tax that applies to the transaction. E-Business Tax tax rules let you create a tax determination model to reflect the tax regulations of different tax regimes and the tax requirements of your business. You can create a simple tax model that makes use of default values without extensive processing, or a complex tax model that considers each tax requirement related to a transaction before making the final calculation. During execution of the tax determination process, E-Business Tax evaluates, in order of priority, the tax rules that have defined against the tax configuration setup and the details on the transaction. If the first rule is successfully evaluated, the result associated with the rule is used. If not, the next rule is evaluated until either a successful evaluation or default value is found. The E-Business Tax tax determination process is organized into rule types. Each rule type identifies a particular step in the determination and calculation of taxes on transactions. https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-state=e3d1zyiph_472&id=473066.1 1/6 the administrator had to setup a Regime to Rate flow and default options across all steps. transactions will calculate taxes using the default settings. The eBTax engine is driven by defaults.1 The tax line determination process uses the information of the transaction header and transaction line to determine the tax lines. Example of Defaults: Responsibility: Tax Managers Navigation: Tax Configuration > Tax Rules Enter your configuration owner. Note that tax rules must be defined for each Tax and cannot be re- used across multiple taxes.oracle. 2. STCC is set as the default for all upgraded setup but cannot be used for "fresh" installs or for newly created regimes. tax regime and tax.08/12/2017 Document 473066. https://support. If no other setup is done in eBTax. How Tax Rules Work (An Example) Assumption: This example assumes that you are using the determine applicable regime tax calculation method (not STCC). during the setup.ctrl-state=e3d1zyiph_472&id=473066.1 2/6 .com/epmos/faces/DocumentDisplay?_adf. For non-location based taxes this will mean that a single tax rate will be applied in all cases for a specific tax (assuming the default is applicable).1 Overview and Basic Troubleshooting of Tax That Does Not Calculate in R12 E-Business Tax (EBTAX) Since most tax regulations have numerous exceptions and special situations it is common that tax rules must be defined to adjust certain elements considered in the application of tax to a transaction. We encourage you to validate that your default tax rules work as expected before you configure additional rules. Understanding Tax Determining Factors https://support.08/12/2017 Document 473066. Oracle E-Business Tax provides two distinct methods for tax Creation: Expert Rule Entry and Guided Rule Entry. For location based taxes the tax jurisdiction derived on the invoice line will cause the application to find and use the tax rate associated with the jurisdiction from the default place of supply rule.ctrl-state=e3d1zyiph_472&id=473066.1 3/6 . a.oracle. Tax rules are executed any time an invoice is saved or completed in AR or Validated/Calculate Tax button is pressed in AP. If you experience difficulties in getting your tax rules to work properly please review Note 1082172.1 Assuming no rules are defined the defaults will be used to calculate tax. In general both can be used to satisfy your tax rule requirements however expert rule entry provides enhanced capabilities to use multiple condition sets within a single tax rule while guided rule entry typically requires multiple rules to satisfy scenarios where different outcomes can occur.com/epmos/faces/DocumentDisplay?_adf. For this example we will step through the creation of an expert rule and explain each step. Class Qualifier and Determining factor name.ctrl-state=e3d1zyiph_472&id=473066. City. Province.oracle. (These are the geography types you have defined in TCA) 4. etc.1 4/6 . To learn more about tax determining factors and to see examples of a wide variety of tax rules created with the different determining factors. Ontario. Toronto. etc (these are the actual values associated with the factor name we selected above. Setting Up A Determining Factor Set A Determining Factor Set is a grouping of tax determining factors created for use as part of a Tax Rule. b. When creating a Determining Factor Set you specify which factors are to be evaluated within your rule.08/12/2017 Document 473066. The E-Business Tax Rule engine then extracts the values for each of these determining factors when the rule is executed. please read Note 1108463.com/epmos/faces/DocumentDisplay?_adf. This is best understood with an example as shown below: 1. Determining Factor Value = Canada. Factor Name and Factor Value. The EBTax rule engine allows implementers to create any number of custom tax rules that reference the tax determining factors and that satisfy the unique needs of a specific business operating within a taxing jurisdiction. Ship From. POA.1 How Tax Determining Factors Work with Tax Rules in R12 E-Business Tax. Ship To (These are the levels that we can select to be evaluated). For example: Determining Factor Class: Geography Class Qualifier: Ship To Determining Factor Name: Country To learn more about Determining Factor Sets please see Note 1111553. 3. Bill To. Class Qualifier = Ship To. A Determining factor set identifies the Determining Factor Class.1 A tax determining factor is an attribute that may be used by rules you create in the E-Business Tax (EBTax) engine to calculate taxes for a specific transaction. Determining factors exist in a range of categories or types (Determining Factor Classes).1 How To Setup Condition Sets and Determining Factor Sets for Tax Rules in R12 E-Business Tax (EBTax) Responsibility: Tax Managers Navigation: Advanced Setup Options > Tax Determining Factor Sets > Create In the example below we created a determining factor set with two determining factors. Determining Factor Name = Country. Within each of class exist a Qualifier. County. POO. Determining Factor Class = Geography (This is the "type" of factor we have available to us) 2. https://support. Tip: Since you can only specify one determining factor set in a single tax rule. Setup a Tax Condition Class Set up tax condition sets to group together the tax conditions that constitute a tax rule.08/12/2017 Document 473066. For examples of rules using different tax determining factors and to see the setup required for each determining factor type. You can use all or only a portion of the determining factors in your condition set. For Example (continuation of the prior example): Determining Factors from Set: Geography Ship To Country Operator: Equal To Value/From Range: Canada In the example below we created a condition set that uses just one of the two available determining factors. The tax condition set is the logic of the tax rule. and a value. It specifies the factors to consider. and the resulting value that must exist for each factor. Responsibility: Tax Managers Navigation: Advanced Setup Options > Tax Condition Sets > Create To learn more about Condition Sets please see Note 1111553.ctrl-state=e3d1zyiph_472&id=473066. add all of the determining factors into your determining factor set and then create condition sets for each combination of factors needed to derive the proper tax outcome.1 5/6 . Note that each rule name has slightly different steps.1 c.1 How Tax Determining Factors Work in R12 E- https://support.1 How To Setup Condition Sets and Determining Factor Sets for Tax Rules in R12 E-Business Tax (EBTax) d.com/epmos/faces/DocumentDisplay?_adf. or you can set up a tax condition set during tax rule creation. refer to Note 1108463. in order for the result of the tax rule to be true. Each tax condition in a tax condition set consists of a tax determining factor (determining factor class/class qualifier/determining factor name). You can set up tax condition sets in advance and apply them to a tax rule.oracle. Expert Rule Responsibility: Tax Managers Navigation: Tax Configuration > Tax Rules > Pick your Rule Name> Select Expert Rule Entry Select the Determining Factor Select the Condition Set and Results Set the Rule Order Enable the rule. an operator. 08/12/2017 Document 473066.ctrl-state=e3d1zyiph_472&id=473066.1 EBusiness Tax Seed Data (Includes a patch that will seed several regimes and which loads a number of Determining Factor Sets and Condition Sets. Other content that may be helpful includes: Note 577996.com/epmos/faces/DocumentDisplay?_adf.oracle. Didn't find what you are looking for? https://support.1 Case Study: Setup R12 E-Business Tax for Canada: Includes 2010 HST Changes Note 463001.1 6/6 .1 Business Tax Check back soon for additional Notes that will demonstrate with examples how to setup each rule type.