Use the Event Class Options page to review the default tax settings for each application event class. E-Business Tax uses these settings as the basis for determining and calculating taxes on transactions belonging to each event class.
This section describes each of the event class options. By default, the event class option settings of an event class apply to all configuration owners. You can update some of the event class options belonging to an application event class for individual configuration owners. See: Setting Up Configuration Owner Tax Options for more information.
The Associated Party Type regions (Parties and Party Sites) are used to determine the party tax profiles to reference for transactions belonging to this event class. These regions display the party types that are associated with first and third parties and party sites for transactions of the event class. At transaction time, the event class application provides the specific parties and party sites that are part of the transaction. E-Business Tax uses this information from the application to retrieve the correct party tax profiles and related tax information.
For example, in transactions belonging to the Oracle Payables Standard Invoices event class, the Ship From and Bill From party is the supplier and the Ship To and Bill To party is the legal establishment involved in the transaction.
The rounding precedence hierarchy indicates the order in which E-Business Tax looks at party tax profiles of parties involved in the transaction for the rounding level and rounding rule to use.
If no party tax profile provides a rounding level, then E-Business Tax uses the event class default rounding level.
If no party tax profile provides a rounding rule, then E-Business Tax uses the tax rounding rule. See: Setting Up Taxes for more information.
Allow Tax Applicability. This option determines if E-Business Tax calculates tax on transactions for this event class.
If this option is set for the Payables event class, you must also set this option on the party tax profile of third parties and third party sites acting as suppliers/supplier sites that are involved in transactions belonging to this event class. See: Setting Up a Third Party Tax Profile for more information.
Allow Entry of Manual Tax Lines. This option determines whether you can enter manual tax lines on transactions, in addition to the automatically calculated tax lines.
Allow Recalculation for Manual Tax Lines. This option only applies if the Allow Entry of Manual Tax Lines option is set. This option determines, when there is an update to automatic tax calculation, whether E-Business Tax also recalculates the manual tax lines.
Allow Override for Calculated Tax Lines. This option determines whether you can override the automatically calculated tax lines on transactions.
Tax Line Override Impacts Other Tax Lines. This option only applies if the Allow Override for Calculated Tax Lines option is set.
This option determines, when there is an override of automatically calculated tax lines on transactions, whether E-Business Tax also recalculates the taxes on prior tax lines in the compounding process.
Allow Override and Entry of Inclusive Tax Lines. This option only applies if these options are set:
Allow Entry of Manual Tax Lines.
Allow Override for Calculated Tax Lines.
This option determines whether you can change the setting for tax inclusive handling on transactions.
Allow Exemptions. This option determines whether you can set up tax exemptions for taxes in this event class. See: Setting Up Tax Exemptions for more information.
Allow Manual Tax Only Lines. This option determines whether you can enter manual tax only tax lines on transactions. A tax only tax line is a tax line that is not related to the transaction or to any item line on the same invoice.
Perform Additional Applicability for Imported Documents (Payables event classes only). This option determines whether E-Business Tax runs the tax applicability process to identify missing taxes on an imported document. Taxes not included in the imported document are marked as Self Assessed, if self-assessment applies to the transaction.
Enforce Tax from Reference Document. This option determines whether E-Business Tax applies to the transaction the tax that is assigned to the transaction reference document.
Enforce Tax from Account. This option determines whether E-Business Tax applies to the transaction the tax that is assigned to the accounting segment of the transaction line.
Allow Offset Tax Calculation. This option determines whether E-Business Tax can calculate offset taxes for this event class. See: Setting Up Offset Taxes for more information.
Offset Tax Basis. This field displays the third party or third party site that E-Business Tax refers to in order to determine whether to calculate offset taxes.
The applicable third party or third party site must also have the Allow Offset Taxes option enabled in the party tax profile. See: Setting Up a Third Party Tax Profile for more information.
Regime Determination Set. This field displays the determining factor template that E-Business Tax uses to determine the tax regime to use for all transactions belonging to this event class.