12/2/2016 Document1368206.

HowtoSetupandTroubleshootOffsetTaxesinR12EBusinessTax(EBTax)(DocID1368206.1)

InthisDocument

Goal
Solution
1.WhatisOffsetTax?
2.HowdoIsetupOffsetTax?
a)CreateRegimetoRateflow
b)SetupaOffsetTax
c)SetupaOffsetTaxStatus
d)SetupaOffsetTaxRate
e)SetupaOffsetTaxRecoveryRate
f)AttachtheOffsetTaxtoRegularTax
g)EnableOffsetTaxandTax
h)ConfigurationOwnerTaxOptionssetup
i)ThirdParty/ThirdPartySitesetup
j)EnteranAPInvoicetotest
3.CriticalPatchingRecommendation
4.Troubleshooting
References

APPLIESTO:

OracleEBusinessTaxVersion12.0.0to12.2.5[Release12.0to12.2]
Informationinthisdocumentappliestoanyplatform.

GOAL

EBusinessTax(EBTax)InformationCenter>Rules>Note1368206.1

WhatstepsarerequiredtoimplementoffsettaxesinR12EBusinessTax?

SOLUTION

1.WhatisOffsetTax?

AnoffsettaxcalculatesandrecordsthirdpartyPayablestaxliabilitiesforreversecharges,selfassessments,and,intheUnited
States,Consumer'sUsetax.Anoffsettaxrecordisamatching,duplicaterecordwithnegativeamountsthatreducesor
completelyoffsetsthetaxliabilityrecordedinthetaxtransaction.Useoffsettaxeswhenthetaxrequirementincludescreating
offsetgeneralledgerpostings.

Youcannotupdatetherecoveryrateonanoffsettaxline.Therecoveryrateisalways100%inordertocreatecreditentries
thatmatchtheoriginaltaxamounts.Whenyoucreateanoffsettax,youenteraprimaryrecoverytypewitharecoverablerate
of100%anda100%recoveryrate.

InsomeJurisdictions,OffsetisalsocalledasReverseChargeorSelfAssessedTax.

IfyourrequirementistocreateSelfAssessedtaxes,ratherthanOffsettaxes,pleasereviewthefollowingnote:

https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrlstate=13pcd80ch1_407&id=1368206.1 1/9
12/2/2016 Document1368206.1

Note948414.1:HowtoConfigureaTaxtoSelfAssessinR12EBusinessTax(EBTax),PayablesandPurchasing(Offset,Use
Tax)

2.HowdoIsetupOffsetTax?

OffsetTaxesneedsspecialsetupandisdetailedinthestepsbelow.

a)CreateRegimetoRateflow

1.SetupaTaxRegime(notshown)
2.SetupaRegularTax(notshowndon'tchecktheSetasOffsetTaxflag)
3.SetupaTaxStatus(setasdefaultnotshown)
4.SetupaTaxJurisdiction(setasdefaultnotshown)
5.SetupaTaxRate(notshown)
6.SetupaOffsetTax
7.SetupaOffsetTaxStatus
8.SetupaOffsetTaxRate
9.SetupaOffsetRecoveryRate
10.AttachOffsetTaxtoTax
11.EnableOffsetTaxandTax(notshown)
12.UpdateConfigurationOwnerTaxoptions(notshown)
13.UpdatePartyTaxProfilesofThirdparty/ThirdPartySites

b)SetupaOffsetTax

CreateaTaxwiththefollowingoptionschecked.

a.SetasOffsetTaxCheckthisflagforoffsettax,thisconfirmsthatitisaoffsettax.

b.AllowTaxRecoveryChecktheAllowTaxRecoveryandselectthevalueinPrimaryRecoveryType.Afterdefining
theTaxRecoveryRate,fillthevalueinRecoveryRatecode.

https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrlstate=13pcd80ch1_407&id=1368206.1 2/9
12/2/2016 Document1368206.1

c)SetupaOffsetTaxStatus

CreateaTaxstatusundertheOffsetTaxwith'AllowTaxRateOverride'optionnotchecked.

d)SetupaOffsetTaxRate

CreateaOffsetTaxRateunderOffsetTaxStatusandOffsetTax.DonotattachaTaxJurisdictionfortheOffsetTaxRate.
EnterthepercentageratefortheOffsetTaxRateasnegativepercentageoftheoriginalTaxRate,forexampleifthe
originalrateis21%,entertheoffsettaxrateas21%.ThenClickonRatedetailsandselecttherateasdefaultrateand
donotsettheAllowAdHocRateOption.AlsomakesuretoentertheTaxAccountsifyouwanttodefaulttheTax
AccountsfromTaxRate.

https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrlstate=13pcd80ch1_407&id=1368206.1 3/9
12/2/2016 Document1368206.1

e)SetupaOffsetTaxRecoveryRate

CreateaTaxRecoveryRateforOffsetTaxwith100%TaxRecoveryandsetthedefaultflag.Again,donotsettheAllow
AdHocRateoption.AlsomakesuretoentertheTaxAccountsifyouwanttodefaulttheTaxAccountsfromTaxRecovery
Rate.

f)AttachtheOffsetTaxtoRegularTax
https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrlstate=13pcd80ch1_407&id=1368206.1 4/9
12/2/2016 Document1368206.1

GotoRegularTaxRateandthenunderRatedetails,attachtheOffsetTaxthatyoujustcreated.Thisishowyoulinkthe
regulartaxtooffsettax.

g)EnableOffsetTaxandTax

Ifyouhavenotenabledtheregulartax,youneedtoenabletheoffsettaxfirstandthenenabletheregulartax.Before
enablingtheoffsettax,makesuretoattachtheTaxRecoveryCodeunderAllowTaxRecoverysection.

ThenenabletheoffsetTax,regulartax(ifnotalreadyenabled).

h)ConfigurationOwnerTaxOptionssetup

ThefollowingoptionsmustbecheckedattheConfigurationOwnerTaxOptionsunderDefaultsandControls:

AllowOffsetTaxCalculationCheckthisflagtoenableoffsettaxcalculation
OffsetTaxBasisSelect'ShipfromPartySiteifsettinguptheOffsetflagatSupplierSite/ThirdPartySitelevelorSelect
'ShipfromParty'ifsettinguptheoffsetflagatSupplierHeader/ThirdPartylevel.

i)ThirdParty/ThirdPartySitesetup

TheFlag'AllowOffsetTaxes'canbesetupeitheratThirdPary/SupplierHeaderlevelifyourConfigurationOwnerTax
Optionsoffsettaxbasisissetto'ShipfromParty'.Likewise,theflagneedscanbesetupatThirdPartySite/SupplierSite
leveliftheoffsettaxbasisissetto'ShipfromPartySite'.

https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrlstate=13pcd80ch1_407&id=1368206.1 5/9
12/2/2016 Document1368206.1

j)EnteranAPInvoicetotest

1.Enteraninvoicewithanamount(say100)

2.EnterItemAmountinthelinesasshownandclickonCalculateTax.AstheTaxissetasoffset,thesystemwill
calculate2taxlinesonepositivetaxlineandanotheranegativetaxline
whichoffsetstheoriginaltax.

3.ClickonTaxDetailstoseetheTaxdetailsfortheinvoice.Youcanseethattherearetwotaxlineshere.

https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrlstate=13pcd80ch1_407&id=1368206.1 6/9
12/2/2016 Document1368206.1

4.YoucanclickonAllDistributionstoviewtheTaxAccounting.

3.CriticalPatchingRecommendation

UsersarestronglyencouragedtoapplythelatesttaxruleenginepatchtoavoidknownissueswithruleevaluationsinEBTax.

File:zxdirulenginpvtb.pls Patch

R12.0 120.107.12000000.47 Patch9954561

R12.1 120.124.12010000.22 Patch9206876

R12 120.163.12020000.11 Patch23329905

4.Troubleshooting

Thefirststepintroubleshootingistoreviewthesetupnotedabove.Iftheproblempersists,pleasereviewthelistofreported
issuesbelowrelatedtoInclusivetaxes.

Alsocheckthefollowingissuestoseeifanyareapplicabletoyourissueandrelease

Presentation Cause Fix12.0

OncetheInclusiveflagisselected,howcanyouchangeit?. StandardFunctionality RefertoNote551761.1

Forexample,ifyounavigateto:

1.Responsibility:OraclePayables
2.Path:Invoices>Entry>Invoices
3.Queryaninvoice
4.SelecttheTaxDetailsbutton

TheInclusiveflagisselectedandit'snotpossibletochangeit.
https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrlstate=13pcd80ch1_407&id=1368206.1 7/9
12/2/2016 Document1368206.1

TheInclusiveflagisselectedandit'snotpossibletochangeit.

Unabletovalidateandinvoicewithmultiplelines/multiple Bug6653070 FixedFile:

distributionsduetothefollowingerror: apetxsrb.pls120.81.120000

REP69:Internalerror RecommendedPatch
REP57054:Inprocessjobterminated:Terminatedwitherror:
REP1419:MSG00000:WhenOthers:UserDefinedException YoucancontactSupportto
REP1419:'beforereport':PL/SQLprogramaborted. thatprovidesthelatestvers
ORA1422:exactfetchreturnsmorethanrequestednumberof abovefixedfile.
rowsoccurredin
withparameters(P_Invoice_Id=XP_Error_Code=
P_Calling_Sequence
=AP_ETAX_SERVICES_PKG.Distribute<
AP_ETAX_PKG.Calling_eTax<)
whileperformingthefollowingoperation:
Step7:UpdateInvoiceIncludesPrepayFlag
ORA20001:APPSQLAP10000:ORA1422:exactfetchreturns
morethan
requestednumberofrows
occurredin
withparameters(P_Invoice_Id=12660P_Error_Code=
P_Calling_Sequence
=AP_ETAX_SERVICES_PKG.Distribute<
AP_ETAX_PKG.Calling_eTax<)
whileperformingthefollowingoperation:
Step7:UpdateInvoiceIncludesPrepayFlag

Theproblemoccursforinclusivetax.

Onlinevalidationshowsthesameerror.

InclusiveTaxFlagisnotinSyncbetween Bug9651583 FixedFile:

ap_suppliers/ap_supplier_sites_allandzx_party_tax_profile. zxdiroundtaxpkgb.pls
Thisisanupgradeissue, 120.64.12000000.33
contactsupporttogetthelatest zxditxbsisdtpkgb.pls120.80
patchforthisissue zxdwtxcalsrvpubb.pls
120.130.12000000.38
zxdwtxcalsrvpubs.pls120.4
zxifgblparampkgs.pls
120.89.12000000.15

Whentryingtounchecktheinclusivecheckboxintaxdetails Setupissue RefertoNote1347534.1

windowininvoiceworkbench,receiveerrorFRM40200'Field
isprotectedagainstupdate'

REFERENCES

BUG:9651583INCLUSIVE_TAX_FLAGISNOTINSYNCH
NOTE:1117544.1EBusinessTax(EBTax)InformationCenter
NOTE:1181529.1HowtoSetupandTroubleshootaQuantityBasedTaxinR12EBusinessTax(EBTax)
NOTE:551761.1R12:CanTheInclusiveTaxFlagBeUpdatedWhileCreatingaPayablesInvoice?

https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrlstate=13pcd80ch1_407&id=1368206.1 8/9
12/2/2016 Document1368206.1

NOTE:948414.1HowtoConfigureaTaxtoSelfAssessinR12EBusinessTax(EBTax)Payables
BUG:6653070R12:APXINWKBITEMLINEWITHMULTIDISTRIBUTIONSINVOICEVALIDATIONERROR

Didn'tfindwhatyouarelookingfor?

https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrlstate=13pcd80ch1_407&id=1368206.1 9/9