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Using and Troubleshooting Tax Exemptions in R 12 E-Business Tax (EBTax) (Doc ID 750064.1)

Last updated on SEPTEMBER 23, 2020

Applies to:

Oracle Receivables - Version 12.0.0 and later
Oracle Payables - Version 12.1.3 to 12.1.3 [Release 12.1]
Oracle E-Business Tax - Version 12.0 and later
Oracle iStore - Version 12.0 and later
Information in this document applies to any platform.
FORM:ARXTWMAI.FMB - Transactions



Purpose

EBTax Information Center > EBTax Features (Setup & Troubleshooting) > Exemptions > Note 750064.1.1

We are actively trying to build up participation in our EBTax community.  We'd love your input, ideas, collaboration and solutions to be part of the experience.  Check us out at E-Business Tax on the communities page

This note was written to assist users in identifying why a tax exemption is not working as expected after it has been defined.  The note is not intended to explain how to set up a tax exemption.  For more information on setting up exemptions, please refer to the Release 12 documentation library and the eBTax users guide

Troubleshooting Steps

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In this Document
Purpose
Troubleshooting Steps
 1. THE BASICS:  WHAT ARE THEY?
      A.  What is a Tax exemption?
      B.  How is a tax exemption different from a tax exception?
 2. TROUBLESHOOTING
      A. Most Common Cause:   Make Sure You Defined the Exemption On The Proper Location
      B. How to troubleshoot an exemption that is not automatically applied to a transaction
     a. Enter an Invoice and identify the following:
     b. Make sure the tax handling method on the invoice line or order line is set properly
     c. Validate Ship-To Site Party Tax Profile
     d. Validate the exemption at the Party level
     e.  Check for Multiple Exemptions
     f. - Defaults and Controls: Application Tax Options
     g. Defaults and Controls: Configuration Owner Tax Options
     h. Confirm that the applicable event class allows exemptions. 
     i. Verify that your Regime to Rate Flow Allows Exemptions
     j.  Is a Partner Calculating Tax?
     k. Is the Problem in Order Management?
      l. Invalid tax exempt reason code (TAX_EXEMPT_REASON_CODE)
 3. MANUAL EXEMPTION ENTRY TROUBLESHOOTING
 A. Manual exemptions cannot be entered
 B .Manual Tax Lines Calculate Despite Exemption
 C. Exempt reason codes not showing up in LOV
 4. ISSUES WITH EXISTING EXEMPTIONS
      A.  Certificate numbers are not defaulting to transactions
      B.  Unable to update an exemption
      C.  Exemptions are setup and applied but the tax amount calculated is not correct
      D.  Party level Exemptions not honored if ship to is a different party
 5. GETTING TECHNICAL
      A. What source code is used to evaluate exemptions?
 6. ALTERNATIVES TO EXEMPTIONS
 A. Tax Exemptions vs Tax Rules?
 7. UPGRADES
 A. Upgrade issues and Differences with Tax Exemptions
 8. API & INTERFACES
 A. Is there an API to copy or mass create exemptions?
 9. USING TAX PARTNERS (EX: Vertex, Taxware, etc)
     a. Changes to Partner Exemption Handling for Vertex O Series
     b. READ THIS before you load a Tax Rate file (Vertex/Taxware/Others)
     c. Partner Sourced Exemption Details Not Displayed On Transactions and Reports
      d) Vertex Exemptions not Interfaced to Oracle
 10. BUGS
     A. Other Bugs and Notes to consider reviewing
References

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