AutoInvoice gives you flexibility to handle all of your taxing needs. If your tax method is VAT, you can either pass tax lines through the AutoInvoice interface tables or have Receivables automatically calculate your tax lines for you. If your tax method is Sales Tax, Receivables will always calculate tax for you. However, you can choose to pass additional tax lines with tax codes of type VAT, Sales Tax, or Location.
AutoInvoice lets you pass tax lines as individual transactions or as references to other transactions. If you are passing tax lines, you can only pass tax lines associated with tax codes of type VAT, Sales Tax, or Location. The RA_INTERFACE_LINES.LINK_TO_LINE_ATTRIBUTE1-15 and RA_INTERFACE_LINES.LINK_TO_LINE_CONTEXT columns will determine whether a tax line will become an individual tax only transaction or part of another transaction.
To pass a tax line that refers to another transaction line, enter the Line Transaction Flexfield of the transaction to which you want this tax line to refer. To pass tax lines, RA_INTERFACE_LINES.LINE_TYPE must be set to 'TAX.'
If you want to pass a tax-only line, enter a Line Transaction Flexfield that refers to a 'dummy' line. This 'dummy' line must have a value in RA_INTERFACE_LINES.MEMO_LINE_ID or RA_INTERFACE_LINES.MEMO_LINE_NAME and the memo line must have AR_MEMO_LINES.LINE_TYPE = 'TAX'. In addition, the Quantity, Unit Price, and Amount fields for this line must be null or zero.
Certain criteria must be met before AutoInvoice will calculate tax.
The table below shows, for each desired result, what tax information needs to be passed to the interface tables.
| Desired Result | Line Type | Tax Code | Tax Rate/Tax Amount | Tax Exempt Flag | Tax Exempt Number | Tax Exempt Reason Code or Meaning | Comments |
|---|---|---|---|---|---|---|---|
| Receivables should calculate the tax based on the standard tax logic. | Line - No Tax line associated with this line | NULL | NULL | NULL or 'S' | NULL | NULL or 'S' | If you have not passed any tax lines with the invoice lines, and the tax exempt flag is NULL or 'S', Receivables will calculate tax for you. |
| You want Receivables to calculate Sales tax, but want to pass additional tax codes. | Tax | Of type VAT or Sales Tax and must be ad hoc. Or, of type Location, but such tax lines are only allowed when importing invoices from Oracle Lease Management. | Must pass either the tax rate or amount | NULL or 'S' | NULL | NULL | The invoice line will have 2 tax lines. The first will be a location-based tax calculated by Receivables. The second will be the tax line passed through AutoInvoice. |
| You want to exempt the invoice line from any taxes and your system option 'Use Customer Exemptions' is set to Yes. | Line | NULL | NULL | 'E' | Pass tax exemption number | Pass reason forexemption | If the tax exemption number does not exist on file, Receivables will create an unapproved exemption. There will be no tax calculated on this invoice line. |
| You want to enforce tax on an invoice line, even if any exemptions exist on the file. | Line | NULL | NULL | 'R' | NULL | NULL | Receivables calculates tax as per its standard logic, ignoring any exemptions. |
Sales tax is calculated by AutoInvoice using the tax rates associated with your shipping address. Sales tax will only be calculated for shipping addresses which are in the country defined in the Default Country field of the System Options window. Receivables lets you pass exception rates and exemptions for customers or items. Sales Tax lines cannot be passed into AutoInvoice tables.
AutoInvoice uses the following hierarchy when deriving the tax rate:
Tax code assigned to ship-to/bill-to address
Tax code defined at the customer level
Tax code defined at the item level
Tax code defined in the System Options window (if your tax method is 'VAT')
If you do not want AutoInvoice to calculate tax based on location, you can pass tax codes through lines with line_type = 'Tax'. Tax codes can be of type VAT or Sales Tax and must be ad hoc. Additionally, tax codes can be of type Location, but such tax lines are only allowed when importing invoices from Oracle Lease Management.
If the tax code is not ad hoc, you must set the Invalid Tax Rate field in the AutoInvoice Options tabbed region of the Transaction Sources window to Correct. You must also pass either a tax rate or amount with the code. Any exemptions must be calculated into the rate or amount.