Defining E-Business Tax
Countries have a tax authority that regulates tax law. The laws have rules, which are set by the tax authorities. Rules determine the treatment of taxes set by the tax authorities. The rules are applicable within a boundary. Oracle E-Business Suite uses E-Business Tax (EBTAX) to calculate the tax on transactions based on rules.
The key steps in defining EBTAX are listed as follows:
Create Tax Regime the set of rules
Create Tax
Create Tax Status
Create Tax Rate
Create Tax Jurisdiction boundaries where the tax is applicable
Create Tax Account
Create Defaulting Rules
In this recipe, we will look at the steps required to set up a new tax rule within a boundary for a tax authority.
Let's assume that the government has decided to introduce an additional Sales Tax of 20 percent to start on 01-APR-2011. In this recipe, we will define the new tax and enter a payables transaction for this new tax.
Getting ready
Login to Oracle E-Business Suite R12 with the username and password assigned...
