Set up and maintain the TCA geography hierarchy for each country where you have a tax requirement. The TCA geography hierarchy provides a single reference source for all geographical and location-based information for all E-Business Suite applications.
You use the TCA geography hierarchy in these cases:
Taxes that are levied at a level lower than the country level, for example, state or provincial taxes.
Tax characteristics, such as the tax rate, vary at a lower level than the country level.
You must set up and maintain the TCA geography hierarchy before you can perform these tax-related setups:
Legal entities and establishments - Enter and maintain location information for first party legal entities and the first party legal establishments. See: Setting Up Legal Entity for more information.
Tax zones - Set up tax zones to represent regions according to a tax requirement. Tax zones let you group together regions otherwise separated by geographical or political boundaries where a tax treatment is identical throughout these regions. See: Setting Up Tax Zones for more information.
Tax regimes - Set up tax regimes for a country or tax zone. See: Setting Up Tax Regimes for more information.
Taxes - Set up taxes and specify the geographical level where each tax applies, such as a city tax or a county tax. See: Setting Up Taxes for more information.
Tax jurisdictions - Set up tax jurisdictions for a tax using geographies or tax zones. See: Setting Up Tax Jurisdictions for more information.
Tax rules - Use the Geography determining factor class to set up determining factor sets that use geographical locations in tax rules. Use the User Defined Geography determining factor class to set up determining factor sets that use tax zones in tax rules. See: Setting Up Tax Determining Factor Sets for more information.
Use TCA administration to maintain these aspects of the geography hierarchy:
Country structure - Set up and maintain the hierarchical structure of a country. The structure begins with the largest geography type and ends with the smallest geography type. For example, the United States structure is: State > County > City > Postal Code.
Geography types - TCA provides seeded geography types for certain countries. The geography types are used to create the geographical hierarchy of a country. Perform these tasks for geography types:
If necessary, set up new geography types in accordance with the structure of a country.
Set up and maintain aliases for specific Geography elements. An alias is an alternative name for a geography type. You can use aliases as a part of your address validation.
Define the contents of a geography type within the context of a country structure, for example, the states belonging to the United States or the provinces belonging to Canada.
Address validations - Set up mappings and validations between country address formats and the TCA geography hierarchy. TCA uses the definitions you provide to validate an address entry against the geography hierarchy. You use address validation for taxes levied below the country level to verify that it is a valid address for tax purposes.
For example, set up a list of Canadian provinces to verify each applicable address against a valid province for the correct handling of Canadian PST.
Enable both the Geography Validation and Tax Validation options for each level for which you need to create tax jurisdictions.