Case Study: How Payables Open Interface Import works with EB Tax for importing Invoices
(Doc ID 1381400.1)
Last updated on OCTOBER 14, 2022
Oracle E-Business Tax - Version 12.0 and later Oracle Payables - Version 12.0.0 and later Information in this document applies to any platform.
In Release 12, Oracle introduced E-Business Tax as the new tax calculation engine for the Order to Cash and Procure to Pay business flows. Each of these modules proprietary tax engines from earlier releases were discontinued in favor of this new solution.
The Payables Invoice Import is a concurrent request that should be submitted from an Accounts Payable (AP) responsibility. The purpose of the program is to interface invoice lines either from another module in Oracle Applications or from any other legacy systems.
There are two interface tables that hold the data to be imported:
Additionally, the following table holds the rejection reasons if an invoice is not successfully imported.
SCOPE & APPLICATION
This document will describe few case studies for importing invoices using the Payables Open Interface Import Concurrent Program with Tax Lines.
We would be discussing the following scenarios:
1. How to calculate tax during importing the invoice 2. Importing of Exclusive Tax line through import program 3. How to calculate Inclusive Tax through import program
PREREQUISITE: Prerequisites while Importing Invoices with Tax Lines:
1. The setup of 'Configuration Owner Tax Option' under the Defaults and Controls section of EB-Tax, controls the creation of tax lines for the invoices imported using open interface. Please select appropriate options during your implementation.
2. The Place of Supply option under 'Tax Rules' needs to be selected carefully during implementation ---- Tax Rules - 'Place of Supply' Options: - Operating Unit is for "Bill-To" location - Supplier & Supplier Site are for "Bill-From" and "Ship-From" - Location is for "Ship-To" This setup is valid only for system calculated tax lines and not relevant for manually imported tax lines
3. For non-recoverable tax, the distribution will get the account from its corresponding ITEM line or EXPENSE account. For recoverable tax, the distribution will get the account from the account set up done at either Recover Rate or Tax rate and if neither are setup, then the interim tax account is used. The Validation process will get these distribution accounts.
4. In R12 you cannot have multiple tax lines with the same regime to rate information being allocated to a single item line. Single regime to rate can be allocated to multiple item lines for an invoice. However multiple tax lines with the same regime to rate information are not supported.
5. If CALC_TAX_DURING_IMPORT_FLAG is set to 'Y' during import, EB Tax will calculate taxes automatically as per the tax setup. Following columns in AP_INVOICE_LINES_INTERFACE are tax driver columns, which may be used to determine the tax applicability during import:
Important Columns in the Interface Tables to drive the Tax Calculation: TAX_CODE This field is no longer used in R12, the customer must use the new fields in R12 in the interface and also setup EB Tax appropriately to meet their tax calculation needs.
The new fields in R12 are as follows:
TAX_REGIME_CODE The set of tax rules that determines the treatment of one or more taxes administered by a tax authority.
TAX A classification of a charge imposed by a government, through a fiscal or tax authority.
TAX_JURISDICTION_CODE Internal ID of the Tax Jurisdiction
TAX_STATUS_CODE Tax status code
TAX_RATE_ID Internal identifier for tax rate effective on the invoice date.
TAX_RATE_CODE Tax rate name associated with tax rate identifier.
TAX_RATE_ID This is unique while the TAX_RATE_CODE may have different tax rates based on date ranges.
TAX_RATE NUMBER This rate specified for a tax status in effect for a period of time.
CALC_TAX_DURING_IMPORT_FLAG and ADD_TAX_TO_INV_AMT_FLAG Indicates whether tax should be calculated or not for the imported invoice. If this column is set to Y, then EB Tax will calculate the tax automatically for the imported invoices based on Tax setup and data populated in Tax Driver columns of interface tables. Do not populate data in AP_INVOICE_LINES_INTERFACE with 'TAX' lines if this column is set to Y. For manual TAX lines, leave this column blank in AP_INVOICES_INTERFACE. This flag should be set to 'Y' only when you expect to use automatic tax calculation during import.
PRORATE_ACROSS_FLAG If this column is set to 'Y' and this is a non-Item type line (Tax, Miscellaneous, or Freight), then, Payables will prorate the charge to all Item type lines with the same LINE_GROUP_NUMBER as this line. If no line group number is specified, Payables will prorate the charge to all Item lines. If this column is set to N, then Payables will not prorate the cost and will create only one distribution. Payables prorates tax for Tax type lines, freight for Freight type lines, and miscellaneous for Miscellaneous type lines. Payables create a distribution line for each line you prorate the charge to. The system assigns the expense account of the Item line to the new invoice distribution.
LINE_GROUP_NUMBER If a charge needs to be prorated to a group of lines, enter an identical line group number value for each Item line to which charge to be prorated. For example, if a tax to be prorated across two Item lines, enter the same line group number for the two Item lines and the Tax line.
To view full details, sign in with your My Oracle Support account.
Don't have a My Oracle Support account? Click to get started!