Basic Troubleshooting:
In release 12, many factors can influence tax applicability and prevent a tax from being levied on an invoice. 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 regime
2)The transaction to be taxed must be created in an operating unit that is associated with the taxing regime. This association can either be through the Operating Unit party tax profile or, if the operating unit is set up to use the subscription of the legal entity, through the legal entity party tax profile.
2. Tax:
The Tax must be Available for Transactions and fall within a valid date range for the tax.
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 to derive the tax status.
4. Tax Rate and Jurisdiction :
1)Dates on the transaction must fall within those on the Rate and Jurisdiction
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 rule setup 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 British Columbia.
4)If the Tax Rate is associated to a Jurisdiction, make sure the place of supply specified in your tax rules (ex: ship-to) is valid. To do this check the invoice and find the address corresponding to your place of supply and identify the geography segment in that address that 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 for taxes to automatically calculate based upon the place of supply (versus explicit tax rules dictating when the tax should apply)
5)If the Tax Rate is not restricted to a Jurisdiction, a tax rate must exist with the jurisdiction as 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 be enabled. Make certain that the default for 'Determine Tax Applicability' is set to Applicable or that you have a rule defined and enabled that makes the tax applicable for your specific transaction.
2)As indicated in the prior sections, make certain that the Tax Status and Tax Rate defaults are 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 calculate tax. Not all determining factors, condition sets and values can be used in all modules.
6. Configuration Owner Tax Options:
1)Configuration Owner Tax Options are set in the Tax managers responsibility under the defaults and controls tab. Query the operating unit (or legal entity) where you have associated your tax regime (see tax regime above to determine this). If you have this defined (this is optional setup) then make sure the 'Allow tax Applicability' checkbox is checked. Also make certain that you have the proper tax determination method selected. (STCC is only for upgraded tax calculation logic)
7. Transaction:
1)If your tax considers ship-from in receivables, make certain you specify a warehouse on your transaction line. (The same is true if you have advanced rules defined referencing product fiscal classifications)
2)If you are using an upgrades setup, direct rate rule or if you configured rules to reference the tax classification code, make certain you have a tax classification code set on your invoice line. (Defaulting of this field can be controlled in the Tax Managers responsibility under Application Tax Options)
No comments:
Post a Comment