8/13/2019 Tax Does Not Calculate in R12 E-Business Tax (EBTAX)

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Prepared By: Mohammed Salah Mahmoud | Oracle Financial Consultant R12

How to Troubleshoot a Tax That Does NotCalculate in R12 E-Business Tax (EBTAX)

Below are many of the settings that you should review when troubleshooting a tax that will

not apply.1. Tax Regime:

1)The transaction date must fall within the active dates of the regime2)The transaction to be taxed must be created in an operating unit that is associated withthe taxing regime. This association can either be through the Operating Unit party taxprofile or, if the operating unit is set up to use the subscription of the legal entity, through thelegal entity party tax profile.

2. Tax:

The Tax must be Available for Transactions and fall within a valid date range for the tax.

8/13/2019 Tax Does Not Calculate in R12 E-Business Tax (EBTAX)

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3. Tax Status: 

1)The Tax Status must be Available for Transactions and fall within a valid date range for

the tax.

2)Tax Status must be set as the default tax status or have a tax status rule defined toderive the tax status.

4. Tax Rate and Jurisdiction : 

1)Dates on the transaction must fall within those on the Rate and Jurisdiction

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2)Tax Rate must be defined as a child to the tax status derived in the prior section

3)If the Tax Rate is associated to a Jurisdiction, the place of supply specified in your tax rulesetup must match that of your transaction. ex: If taxing jurisdiction is British Columbia,Canada and your place of supply is Ship-To then the Ship-To address must be in BritishColumbia.

4)If the Tax Rate is associated to a Jurisdiction, make sure the place of supply specified inyour tax rules (ex: ship-to) is valid. To do this check the invoice and find the addresscorresponding to your place of supply and identify the geography segment in that addressthat you are using for your jurisdiction. Make certain a rate exists for the exact

 jurisdiction. Also make sure all jurisdiction tax rates are set as "Default" if you wish fortaxes to automatically calculate based upon the place of supply (versus explicit tax rulesdictating when the tax should apply)

5)If the Tax Rate is not restricted to a Jurisdiction, a tax rate must exist with the jurisdictionas null and the tax rate must be set up as default.

5. Tax Rules 

1)When implementing E-Business Tax you must specify a default rules before taxes can beenabled. Make certain that the default for 'Determine Tax Applicability' is set to Applicableor that you have a rule defined and enabled that makes the tax applicable for your specifictransaction.

2)As indicated in the prior sections, make certain that the Tax Status and Tax Rate defaultsare valid or that you have rules defined to properly derive these values.

3)If you have defined tax rules using guided rule entry or expert rule entry, make certain that

the determining factor is available in the module where you are attempting to calculatetax. Not all determining factors, condition sets and values can be used in all modules.

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Prepared By: Mohammed Salah Mahmoud | Oracle Financial Consultant R12