Tax Calculation in Payables not Working for a Particular State

(Doc ID 2321233.1)

Last updated on OCTOBER 25, 2017

Applies to:

Oracle Payables - Version 12.1.3 to 12.2.7 [Release 12.1 to 12.2]
Information in this document applies to any platform.

Goal

Upon setting up a new legal entity and a new operating unit, it's found that EBTax is not calculating the tax when the Ship-To location is within a particular state. The following error is thrown:

"Payables could not calculate tax due to: The system could not determine the applicable Tax Rate for XXXX and Tax Status YYYY. Please contact your Tax Administrator to ensure that either a default tax Rate Code that is effective on &DATE is specified for this Tax Status or appropriate Rate Determination Rules are defined. (TAX_DET_DATE=ZZZZ)"
 

Solution

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