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Frequently Asked Questions - Oracle Payables and EBTax Setup (Doc ID 735970.1)

Last updated on JUNE 21, 2023

Applies to:

Oracle Payables - Version 12.0.0 and later
Oracle E-Business Tax - Version 12.0.1 and later
Information in this document applies to any platform.


The purpose of this document is to help customer with functional setup and usability questions about ebtax.

Questions and Answers

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In this Document
Questions and Answers
 1. Was the Include Tax check box replaced in the Release 12? 
 2. From where does the tax classification code default on the invoice Line?
 3. Should the Tax Amount field be populated in the General tab?
 4. How to avoid tax of being created for Freight lines?
 5. What determines which tax regime will appear in the LOV of Tax Simulator?
 6. Why the offset taxes are not available in the LOV for tax lines?
 7. What's the correct way to enter tax lines manually?
 8. Is it possible to not have a default tax for Payables or to ensure no tax is calculated for Payables transactions?
 9. Is there any alternative to load Sales Tax rates for US in R12?
 10.How to create records in the zx_party_tax_profile table?
 11. Is it possible to make a tax Not Applicable, but still be able to enter a tax line manually?
 12. How to proceed when the "Allow Tax Rate Override" flag is protected?
 13. Why the system looks for setup even if Allow Tax Applicability = NO?
 14. How to update employee type supplier site for tax exemption?
 15. How to make the system calculate only the taxes from the regime code, which the supplier is registered.
 16. Is it possible to have specific transactions NOT to be taxed e.g. Prepayment Invoices, Expense Report Invoices or Freight and Misc Line Types?
 17. How to manually override or adjust the tax amount in the AP invoice distributions?
 18. What is the flag "Enable Tax to be Applicable" used for? How to enable it?
 19. Why isn't it possible to select a Tax to create a manual tax line?
 20. How to use the tax rate defined for the tax jurisdiction?
 21. How to calculate taxes for Canada in R12?
 22. How will AP determine which tax to pick up?
 23. How to default the liability account from the ebtax setup?
 24. Why isn't it possible to uncheck the Self Assessed flag?
 25. Why tax details are not defaulted automatically on supplier/site?
 26. What's the required setup for Self Assessed Tax?
 27. How does ebtax work with encumbrances enabled?
 28. How to use Vertex Rate in AP?
 29. Should the tax amount be calculated automatically for manual tax lines?
 30. Why the distribution tax line doesn't go to the Item account as in 11i?
 31. How to make tax to be calculated based on the value of a specific flexfield segment?
 32. How to have the place of supplier defaulted automatically?
 33. Is there any problem going back with ebtax disabled to enable it later?
 34. How the Allow Tax Rate Override works?
 35. How to change the Inclusive Flag in Tax Details?
 36. Additional clarification needed for recoverable tax
 37. How to create a rule on the registration status as 'not registered'?
 38. What's the equivalent report in R12 for the Use Tax Liability Report?
 39. Is there a correct procedure for entering a tax only invoice?
 40. How to have Use Tax/Self Assessed not applied for registered suppliers?
 41. Is there any specific setup required to calculate taxes for expense report?
 42. How to create a rule with multiple lines with various rebate codes?
 43. Is it possible to set a specific invoice as inclusive?
 44. Why the event class SALES_TRANSACTION_TAX_QUOTE is passed to AP?
 45. How to get a LOV for Collecting Tax Authority and Rep Tax Authority fields?
 46. Should invoice tax distribution line exist for self assessed tax?
 47. Can you confirm how tax rounding should work in Release 12?
 48. Is it possible to define a tax jurisdiction to represent all countries?
 49. How to check what's the transaction type and its configurator owner?
 50. How the "inherit from legal entity" flag can affect the tax rules?
 51. How to have the "Tax Recoverable/liability Account" applied at payment?

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