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Document1368206.1

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:
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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.

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c)SetupaOffsetTaxStatus
CreateaTaxstatusundertheOffsetTaxwith'AllowTaxRateOverride'optionnotchecked.

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

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e)SetupaOffsetTaxRecoveryRate
CreateaTaxRecoveryRateforOffsetTaxwith100%TaxRecoveryandsetthedefaultflag.Again,donotsettheAllow
AdHocRateoption.AlsomakesuretoentertheTaxAccountsifyouwanttodefaulttheTaxAccountsfromTaxRecovery
Rate.

f)AttachtheOffsetTaxtoRegularTax
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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'.

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j)EnteranAPInvoicetotest
1.Enteraninvoicewithanamount(say100)
2.EnterItemAmountinthelinesasshownandclickonCalculateTax.AstheTaxissetasoffset,thesystemwill
calculate2taxlinesonepositivetaxlineandanotheranegativetaxline
whichoffsetstheoriginaltax.

3.ClickonTaxDetailstoseetheTaxdetailsfortheinvoice.Youcanseethattherearetwotaxlineshere.

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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.
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TheInclusiveflagisselectedandit'snotpossibletochangeit.

Unabletovalidateandinvoicewithmultiplelines/multiple
distributionsduetothefollowingerror:

Bug6653070

REP69:Internalerror
REP57054:Inprocessjobterminated:Terminatedwitherror:
REP1419:MSG00000:WhenOthers:UserDefinedException
REP1419:'beforereport':PL/SQLprogramaborted.
ORA1422:exactfetchreturnsmorethanrequestednumberof
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

FixedFile:
apetxsrb.pls120.81.120000
RecommendedPatch

YoucancontactSupportto
thatprovidesthelatestvers
abovefixedfile.

Theproblemoccursforinclusivetax.
Onlinevalidationshowsthesameerror.
InclusiveTaxFlagisnotinSyncbetween
ap_suppliers/ap_supplier_sites_allandzx_party_tax_profile.

Bug9651583

FixedFile:
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
windowininvoiceworkbench,receiveerrorFRM40200'Field
isprotectedagainstupdate'

Setupissue

RefertoNote1347534.1

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

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NOTE:948414.1HowtoConfigureaTaxtoSelfAssessinR12EBusinessTax(EBTax)Payables
BUG:6653070R12:APXINWKBITEMLINEWITHMULTIDISTRIBUTIONSINVOICEVALIDATIONERROR
Didn'tfindwhatyouarelookingfor?

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