Tax information defaults onto requisitions, purchase orders, and blanket releases only if your administrator has completed tax setup in Oracle E-Business Tax. Tax applicability rules along with attributes from the transaction are used in determining the tax for the transaction. For example, you can associate a tax with a ship-to location.
Depending on tax setup, you can override the recovery rate if the profile option eBTax: Allow Override of Tax Recovery Rate is set to Yes.
If you use partially recoverable tax, you can view the recoverable and nonrecoverable tax for each shipment and distribution by choosing Manage Tax from the Actions or Tools menu.
You can set up Oracle E-Business Tax to default tax attributes and determine tax applicability in Oracle Purchasing based on your business needs. See: Setting Up Taxes.
The tax attributes and rules you set up in E-Business Tax operate on transactions in the following windows and processes in Oracle Purchasing:
Shipments window for standard and planned purchase orders
Requisition lines in the Requisitions window
Purchase order line shipments created by the AutoCreate Documents window
Shipments tabbed region in the Releases window (for blanket releases)
Release shipments created by the Create Releases process
The tax recovery rate defaults on Oracle Purchasing documents are based on the attributes and rules you set up in E-Business Tax. You can view the tax recovery rate in the Manage Tax window. Override it using the Recovery Rate field is in the following windows:
Requisition Distributions (for purchase requisitions)
Purchase order Distributions (for planned and standard purchase orders)
Release Distributions
The recovery rate is the percentage of tax your business can reclaim for credit. The nonrecoverable portion of the tax is included in the following:
Encumbrance accounting and receipt or period-end accrual accounting
Approval limit amounts
See: Overview of Receipt Accounting.