User doesn't have access large data in output file.

The program its showing completed with

warning

E-Business Tax provides a single point solution for managing your transaction-based tax
requirements. E-Business Tax uniformly delivers tax services to all E-Business Suite business
flows through one application interface. As a global system architecture, E-Business Tax is
configurable and scalable for adding and maintaining country-specific tax content.

Tax Authority=>A goverment entity that regulates tax law, administers, and/or audits
one or more taxes

Tax Regime=>The set of Tax rules that determine the treatment of one or more taxes
administered by tax authority.That is the set of laws and regulations that determines the
treatment of one or more taxes.

Tax=>A classification of a charge imposed by a government through a fiscal or tax

authority.

Tax status=>The taxable nature of a product in the context of a transaction for a tax

Tax rates=>The rates specified for a tax status for a given time period. The tax rate
is expressed as a percentage, a value per unit quantity, or a fixed sum per transaction.

Tax Jurisdiction=>A geographical area where a tax is levied by a special tax authority

Tax determination steps flow:

Determine Place of Supply Determines the location where a transaction is considered

to have taken place for a specific tax.

Determine Tax Applicability Determines the taxes that apply to a given transaction.

Determine Tax Registration Determines the tax registration status for the applicable
taxes of the parties involved in the transaction.

Determine Tax Status Determines the tax status of each applicable tax to use on the
transaction.

Determine Tax Rate Determines the tax rate for each applicable tax status to use on
the transaction.
Pre-Requisites

1. Navigate to Tax Manager->Parties->Party Tax Profiles and Query for the following:

Party Type: Operating Unit Owning Tax Content

Party Name: Vision Operations (Name of the OU you wish to setup for tax)

Click on Go button and then click View Tax Profile.

2. Confirm if Use Subscription of the Legal Entity is checked.

If this is checked, then the OU is set to use the subscription from Legal Entity. The regime is then
subscribed (in a later step) to the First Party Legal Entity rather than the Operating Unit Owning
Tax Content.
This is a one time setup and the value cannot be toggled. So enable this only after you determine
you want to use this setup.
In our case its Checked and therefore we need to set our Tax Regime up against First Party Legal
Entity and NOT against the Operating Unit
Steps
Step 1: Create Tax Regime

1. Navigate to Tax Manager->Tax Configuration->Tax Regimes and click on Create button

2. Enter Regime Code,Name and Country Name.Then Click on Show Controls and Defaults.
3. Enable Allow Override and Entry of Inclusive Tax Lines,Allow Tax Exemptions &
Allow Tax Exceptions.Also enter the other default values and click Continue Button.

4. Enter your operating unit in Party Name.If it prompts to select Party Type, select First Party
Legal Entity in our case.
If Use Subscription of the Legal Entity was unchecked then Party Type would have been
Operating Unit Owning Tax Content
Also select Configuration for Taxes and Rules as Common Configuration & Effective
date.Then click Finish button.

Step 2: Create Tax

1. Navigate to Tax Manager->Tax Configuration->Taxes and click on Create button.
Enter the details as shown in below screenshot and then click on Show Controls and Defaults

2. Enter the following information under Show Controls and Defaults section :

3. Click Apply button

Step 3: Create Tax Status
1. Navigate to Tax Manager->Tax Configuration->Tax Statuses and click on Create button.
2. Enter the details as in below screenshot and click on apply button

Note: Enter Tax Regime created in step 1 & Tax created in step2
Step 4: Create Jurisdiction
1. Navigate to Tax Manager->Tax Configuration->Tax Jurisdictions and click on Create button.
2. Enter details as in screenshot and click on Apply button.

Step 5: Create Rate

1. Navigate to Tax Manager->Tax Configuration->Tax Rates and click on Create button.

2. Enter the details as in below screenshot.

Then click on Rate Details button and scroll down to other details section.Enable Set as Default
Rate and set the Effective From date.

3. Click apply so it comes to Create Tax Rate page and then click Apply button again.
Step 6: Enter Tax Accounts
1. Navigate to Tax Manager->Tax Configuration->Taxes, query Country & the tax we had
created before and click on Go button.

2. Click on Update button and then click on Tax Accounts button.

3. Search for our OUs Ledger and click Create button.

4. Enter the Operating Unit and Tax Expense & Tax Recoverable/Liability account

5. Click Apply button so it will come to Tax Accounts page and click Apply button again.Again
once more click Apply button.
Step 7: Create Tax Rules
1. Navigate to Tax Manager->Tax Configuration->Tax Rules and query Configuration
Owner,Tax Regime Code & Tax and click Go button.

2.Click the pencil icon in the Set Default column to change any of the defaults defined.Update
the defaults as follows:

Step 8: Make Tax Available for Transaction

1. Navigate to Tax Manager->Tax Configuration->Taxes,query Country name,Tax Regime Code
& Tax and click Go button.Then Click on Update icon.

2. Enable the Check-box Make Tax Available for Transactions and click Apply button.

Note:It might throw warning This tax does not have an exchange rate type. Are you sure you
want to enable this tax?,click Yes button for this since we know we didnt enter an exchange
rate type.
Testing
1. Create an invoice with Ship-To location at line level containing an United States location.Save
the invoice after entering the distribution details and click on Calculate Tax Button.Now you can
see the Tax line created at Line Level.

2. Click on Tax Details button to see details.

Withholding Tax Setup

Posted: December 10, 2013 in Account Payables

2
Its used to withhold taxes from your employee expense reports and supplier invoices. The
withheld amount is paid to the taxation authorities.
Payables provides the following income tax forms and reports:

Withholding Tax By Invoice Report

Withholding Tax By Payment Report

Withholding Tax By Tax Authority Report

Withholding Tax By Supplier Report

Withholding Tax Certificate Listing

Withholding Tax Letter

Withholding Tax Report

Steps

1. Navigate to Payables Super User/Payables Manager->Setup->Options->Payables Options

Select the Withholding Tax tab and select the following options:

Use Withholding Tax: If you enable this option, you have the option to allow your
suppliers and supplier sites to be subject to withholding tax

Allow Manual Withholding: Allows manual creation and adjustments of Withholding

Tax type distributions for your invoices

Withholding Amount Basis:

1. Include Discount Amount: Payables includes the invoice discount amount when it
calculates withholding tax amounts for the invoice.
2. Include Tax Amount: Payables includes the invoice tax amount when it calculates
withholding tax amounts for the invoice

Apply Withholding Tax: Select At Payment Time

1. Never
2. At Invoice Validation Time: If Payables withholds tax at Invoice Validation, it
calculates withholding only once. If you adjust an invoice after you submit Invoice
Validation, then you need to manually adjust the withholding tax.
3. At Payment Time: When you create payments in a payment batch or with a Quick
payment.
4. At Invoice Validation and At Payment Time: Indicates when the Withholding Tax is
applied, that is at the time of both Invoice Validation and at the Payment.

Create Withholding Invoice: Select At Payment Time

1. Never: You can create a withholding type tax code without entering a tax authority.
However, if you change to an option other than Never, you will need to manually ensure
that each withholding type tax code has an associated tax authority.
2. At Invoice Validation Time
3. At Payment Time

2. Navigate to Payables Super User/Payables Manager->Setup->Invoice->Payment Terms and

create a new Payment Terms

3. Navigate to Payables Super User/Payables Manager->Setup->Calendar->Special Calendar and

create a new special Calendar of type Withholding Tax

4. Navigate to Purchasing Super User->Supplier Base->Supplier and create a supplier of type

Tax Authority. Then create a site for the same supplier.
Supplier:

Supplier Site:

Supplier Site Payment Details:

Supplier Invoice Management:

5. Navigate to Payables Super User/Payables Manager->Setup->Tax->Withholding->Codes and

create a Tax code as shown in below screen-shot

Rate Structure can be:

Period Limit: It is used to limit the amount of tax withheld during a withholding tax
calendar period. After you paid the amount of WHT specified,system stops creating
WHT-Invoices. Payables will not withhold more than the specified amount for the
specified period(s).

Flat Rate: It is used when you have no amount or period limits.

Amount Ranges: It is used when your WHT rate depends on what you already have paid
during a time period. For the amount basis you can choose between Gross Amount and
Withheld Amount. The time period basis is either per withholding tax calendar period or
per invoice.

6. Navigate to Payables Super User/Payables Manager->Setup->Tax->Withholding->Groups and

create a new Tax Group as shown in below screen-shot

7. Navigate to Purchasing Super User->Supplier Base->Supplier and search for any supplier used
in invoice.Then under Tax Details section across supplier,select Allow Withholding Tax
option.

Also enable Allow Tax Withholding and enter the newly created Tax Group under Payment
Withholding Tax Group against the site.(Since we have set create Withholding Tax invoice at
payment time).

8. Navigate to Payables Super User/Payables Manager->Invoices->Inquiry->Withheld Amounts

and enter the OU,Tax code,supplier & Site and click on Find button.Note that the query caused
no records to be retrieved as there are no invoices created for this supplier yet and there is no
taxes calculated.
9. Navigate to Payables Super User/Payables Manager->Invoices-Entry->Invoices and create a
new invoice using the withholding tax enabled supplier.Enter the header information and then
while entering the line & distribution information,Withholding Tax Group defaults from the
Supplier Site. (If required the default withholding tax group can be modified).
10. Then validate and pay the invoice.

During Payment it has reduced 50 USD as discount and withheld 100 USD (10% of 1000->We
have enabled to include discount amount also for withholding tax amount calculation)
Amount Paid =1000-50(5%1000 as part of Terms Discount)-100(10% 1000, discount amount is
also eligible for withholding since Include Discount Amount is enabled)=850 USD

11. Navigate to Payables Super User/Payables Manager->Invoices->Inquiry->Withheld Amounts

and enter the OU, Tax code, supplier & Site and click on Find button to see the withheld amount
details.

Complete Bank Setups

Posted: December 1, 2013 in Account Payables

0
Bank
1. Navigate to Payables Manager->Setup->Payment->Banks and Bank Branches.Click on Banks
tab and then click on Create button.
(Can also use Cash Management Responsibility->Setup>Banks>Banks navigation)

2. Select the country, enter Bank name & number and other Bank details.Then click on Save
and Next button.

3. Click on Create button under Address tab if you want to add address details.Then click on
Save and Next button.
4. Click on Create Contact button. Enter the details and click on Apply button.

5. Click on Finish button and the Bank is created.

Branch
1. Search the newly created bank from Payables Manager->Setup->Payment->Banks and Bank
Branches and then click Create Branch.

2. Click on continue button and enter the Branch name,Branch number and select Branch
type.Then click on Save and Next button.Branch Types are:

ABA: American Bankers Association

CHIPS: Clearing House Interbank Payment System

SWIFT: Society for Worldwide Interbank Financial Telecommunication

OTHERS

3. Click on Create button under Address tab if you want to add branch address details.Then
click on Save and Next button.
4. Click on Create Contact button. Enter the details and click on Apply button.

5. Click on Finish button and the Branch is created.

Account
1. Search the newly created Branch under Bank Branches tab and then click on Create
Account.

2. Click on continue button and enter the Bank Account Owner.Also select the Account Use .
Then click on Next button.

3. Enter the account Name and other account informations.Then click on Save and Next
button.

4. Enter the Account Control informations and click on Save and Next button.

Multiple Currency Payments: Enable this option if you want to use this bank account to
pay invoices entered in multiple currencies. You can select this option only if the Use
Multiple Currencies Payables option is enabled and of the bank account is in your
functional currency.

Allow Zero Payments: Enable this option to allow zero-amount payments from this
bank account.

Pooled Account: Enable this option if you use Automatic Offsets and you want to
associate multiple companies with this bank account. Oracle Payables creates one
corresponding cash accounting entry for each liability distribution. Oracle Payables
builds the cash account based on the cash account defined for the bank account, and on
the account segments of the liability lines.

Maximum Outlay: Enter the largest currency outlay that you allow for a payment batch
for this bank account. The system displays a warning if the payment batch exceeds this
amount. However, you can continue to process the payment batch. You can override this
default amount when initiating a payment batch.

Minimum Payment: Enter the lowest payment amount that you allow in a payment
batch. You can override this default amount when initiating a payment batch. Maximum
Payment. Enter the largest payment amount that you allow in a payment batch. You can
override this default amount when initiating a payment batch.

5. Click on Add Organization Access button and enter the Organization and select Account
Use options.Then click on Continue button.

5. Enter the Payables and GL options and click on Save and Next button.

6. Click on Create Contact button if you want to create contact.Then click on Finish button and
the Bank account will be created.
Payment Document
1. Select the Account and click on Manage Payment Documents button.

2. Click on Create button and enter the Document Name.Then select the Paper Stock Type and
Payment Format.Also enter First and Last(Last not mandatory) Document number.
Select Paper Stock Type as Blank Stock for Electronic Payment format and Prenumbered
Stock for Paper payment format.

3. Then click apply and the Payment Document will be created.

Invoice Types
Posted: October 10, 2013 in Account Payables

0
1.

Standard

An invoice from a supplier representing an amount due for goods or services purchased.
Standard invoices can be either matched to a purchase order or not matched and it should be a
positive amount invoice.
2.

Credit Memo

Credit Memos are memos from a supplier representing a credit amount toward goods or services.
Credit memos are always negative amounts.
That is, its a negative amount invoice created by a supplier and sent to you to notify you of a
credit.
3.

Debit Memo

An invoice you enter to record a credit for a supplier who does not send you a credit memo.
It is the negative amount invoice created by you and sent to a supplier to notify the supplier of a
credit you are recording.
4.

Mixed

Mixed Invoices are invoices or credit/debit memos for which you can match to purchase orders
and to other invoices. Mixed invoices can be either positive or negative values. However, you
can only match a negative amount mixed invoice to a standard invoice.
5.

Prepayment

A prepayment is a type of invoice you enter to make an advance payment to a supplier or

employee. For example, you need to pay a deposit on a lease, or pay an employee an advance for
travel expenses. You can later apply the prepayment to one or more invoices or expense reports
you receive from the supplier or employee to offset the amount paid to them.
You can enter two types of prepayments: Temporary and Permanent. Temporary prepayments
can be applied to invoices or expense reports you receive. For example, you use a Temporary
prepayment to pay a hotel a catering deposit. When the hotels invoice arrives, apply the
prepayment to the invoice to reduce the invoice amount you pay.
Permanent prepayments cannot be applied to invoices. For example, you use a Permanent
prepayment to pay a lease deposit for which you do not expect to be invoiced.

6.

Expense Report

Expense Report is an invoice representing an amount due to an employee for business-related

expenses.
7.

Withholding Tax

An invoice you enter to remit taxes withheld to the appropriate tax authority.
8.

Retainage Release

An invoice created for complex work and advance contract financing.

9.

PO Price Adjustment Invoices

PO Price Adjustment Invoices are for recording the difference in price between the original
invoice and the new purchase order price. PO price adjustment invoices can be matched to both
purchase orders and invoices.
For example, if a supplier sends an invoice for a change in unit price for an invoice you have
matched to a purchase order, PO Price Adjustment Invoices can be used to adjust the invoiced
unit price of previously matched purchase order shipments or distributions without adjusting the
quantity billed.

Matching Options
Posted: April 25, 2013 in Account Payables

0
2-way matching:
Purchase Order and Invoice quantities should match within your tolerances as follows:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
3-way matching:
Purchase Order, Receipt and Invoice quantities should match with the quantity tolerances
defined:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
Quantity billed <= Quantity received
4-way matching:

Purchase Order, Receipt, Accepted and Invoice quantities should match within the quantity
tolerances defined:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
Quantity billed <= Quantity received
Quantity billed <= Quantity accepted