Set up configuration owner tax options for a combination of configuration owner and application event class. You can update some of the E-Business Tax predefined event class settings for a particular configuration owner. You can also update migrated tax option settings for configuration owners migrated from Release 11i.
If you are using Direct Tax Rate Determination with tax classification codes and migrated tax data, then you must set up configuration owner tax options using the STCC regime determination set for the applicable configuration owner and event class. See: Tax Processing Using Standard Tax Classification Codes for more information.
Configuration owner tax options let a configuration owner update default tax options on transactions that belong to a specific application event class. At transaction time, E-Business Tax uses the tax option settings of the configuration owner and application event class instead of the default settings.
The tables below list the tax options you can update for each application and its event classes. See: Reviewing Event Class Options for a description of these tax options.
| Payables: Expense Reports, Prepayment Invoices, Standard Invoices |
|---|
| Rounding Precedence Hierarchy |
| Regime Determination Set |
| Perform Additional Applicability for Imported Documents |
| Offset Tax Basis |
| Allow Tax Applicability |
| Allow Entry of Manual Tax Lines |
| Allow Recalculation for Manual Tax Lines |
| Allow Override for Calculated Tax Lines |
| Tax Tolerance |
| Purchasing: Requisition, Purchase Order and Agreement, Release |
|---|
| Rounding Precedence Hierarchy |
| Offset Tax Basis |
| Allow Tax Applicability |
| Receivables: Invoice, Credit Memo, Debit Memo |
|---|
| Rounding Precedence Hierarchy |
| Allow Exemptions |
| Regime Determination Set |
| Offset Tax Basis |
| Allow Tax Applicability |
| Allow Entry of Manual Tax Lines |
| Allow Recalculation for Manual Tax Lines |
| Allow Override for Calculated Tax Lines |
You can define tax tolerances for the entry of tax override values on Payables event class transactions belonging to a configuration owner. Tax tolerances are used to determine whether E-Business Tax places a tax hold on an invoice due to the override of calculated tax lines.
A tax tolerance is the acceptable variance between the calculated tax amount on an invoice and the override tax amount entered by the user. If the variance between these two amounts exceeds the tolerances you specify, then E-Business Tax places the invoice on hold.
To define tax tolerances, you must first set the Allow Override for Calculated Tax Lines option. Setting the Allow Override for Calculated Tax Lines option lets you override automatically calculated tax lines on transactions. You use tax tolerances to define the limits of user override.
You can enter these tolerance values:
Tolerance Percentage. Enter a tolerance percentage to define the maximum percentage that a user override can differ from the automatically calculated tax line before placing a hold on the invoice.
Tolerance Range Amount. Enter a tolerance range amount to define the maximum amount that a user override can differ from the automatically calculated tax line before placing a hold on the invoice.