How to Tax Freight Charges Sent From Order Management to Receivables (Doc ID 289816.1)

Last updated on JANUARY 24, 2017

Applies to:

Oracle Order Management - Version 11.5.9 to 12.2.2 [Release 11.5 to 12.2]
Oracle E-Business Tax - Version 12.2.5 to 12.2.5 [Release 12.2]
Information in this document applies to any platform.

Goal

Checked for relevance on 4-JUN-2015

The purpose of this Note is to provide details on how to have tax calculated on the the freight charges associated with a sales order.

The tax calculated in Order Management (which is visible on the Sales Order form) is only an estimate. This is not sent to Receivables. The real tax calculation is done in Receivables when the data is pulled by AutoInvoice.

Order Management only interfaces two line types to Receivables: LINE and FREIGHT.

Receivables does not calculate tax on the line type of 'FREIGHT' only type 'LINE'.  Therefore if the requirement is to have tax calculated on freight lines then the following setups must be done in order for OM to pass the freight lines as type 'LINE'.

Solution

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