Use the Oracle Tax Simulator to enter transactions in order to simulate the tax determination process without creating live data. The Oracle Tax Simulator lets you preview the workings of your tax configuration before you enter transactions in an application, such as the Payables or Receivables workbench. In this way a tax manager or implementation consultant can simulate transactions to test the entire tax and related configuration. The Oracle Tax Simulator provides immediate verification that the tax configuration and tax rules were created and applied according to your requirements.
With the Oracle Tax Simulator, you can:
Enter transactions to simulate tax calculation based on various scenarios.
View the tax rules that were applied to a tax calculation and the processed result for each rule type.
Simulate the characteristics of the Payables, Purchasing, and Receivables workbenches and create the tax line for each type of operation.
View the summarized tax lines for each transaction and the tax lines generated for each transaction line.
Use the associated tax windows to view and/or override tax lines.
The Oracle Tax Simulator provides these verifications:
How the tax rules that you have defined for one or more taxes work in conjunction with the defaults you have set for them.
Whether a tax rule that you expected to have a successful evaluation for a given set of transaction conditions achieved the desired result.
How the options that you have set at various levels are reflected in the results of tax determination processing. If a certain transaction does not processes taxes as you predicted, then you can use the simulated result to troubleshoot the cause. For example:
You defined product tax exceptions, but they were not used on a transaction as expected. You then discover that the Allow Tax Exceptions option was not enabled on the applicable tax rate record.
Your supplier record has the option enabled to use offset taxes, but the offset taxes do not appear. You then discover that the tax rate record does not have an offset tax rate associated with it.
Attention: These restrictions apply to using the Oracle Tax Simulator:
Oracle Tax Simulator does not provide simulation of tax recovery processing.
Oracle Tax Simulator is not meant to test actions that you perform on transactions or transaction lines, such as canceling, deleting and reversing lines.
You cannot use Oracle Tax Simulator to test or verify user control settings.
Oracle Tax Simulator displays the Transaction Lines window for the entry of detailed transaction and tax information. The Transaction Lines window contains a Header region for entering application, party and general transaction information, and a Lines region for entering detailed information for each transaction line.
Main - The application, legal entity, operating unit, and main document details. The list of values in the Document Event field depends on the application that you select:
Oracle Payables: Expense Reports, Prepayment Invoices, Standard Invoices.
Purchasing: Charges, PO_PA, Release, Requisition.
Receivables: Credit Memo, Debit Memo, Invoice, Invoice Adjustment, Receipts.
Trade Management: Trade Management Payables, Trade Management Receivables.
Party - The shipping and billing parties.
Sites - The shipping and billing party sites and locations.
You can narrow the list of values on fields in the Sites tabbed region in these ways:
Enter the site name in the Ship From Party Site and Bill From Party Site fields for Payables transactions, and the Ship To Party Site and Bill To Party Site fields for Receivables transactions.
Enter the city name in the Ship From Location and Bill From Location fields for Payables transactions, and in the Ship To Location and Bill To Location fields for Receivables transactions.
Currency - The currency and exchange rate information.
Misc - The default taxation country and document subtype:
Default Taxation Country - The country of taxation for tax calculation purposes. This is an important prerequisite for defaulting other associated tax fields.
Document Sub Type - Used for both tax calculation and tax reporting depending upon the requirements of the taxation country. You can use this field when documents such as an Invoice or a Credit Memo need to be further classified.
Location - The points of acceptance and origin.
The list of values available in the Party, Sites, and Location tabbed regions depend on the application for which you are entering the transaction. You must select at least one location for a transaction.
Main - The standard line information for a transaction.
More - Additional charges, discounts or exemption details.
Reference Documents - If applicable, a prior document in the business flow, such as a purchase order for a Payables standard invoice.
Adjusted Documents - If applicable, a prior document that is adjusted by the current document, such as an existing sales invoice for a Receivables credit memo.
Applied Documents - If applicable, a prior document that is applied to the current document, such as an existing prepayment invoice for a new Payables invoice.
Tax - The regime-to-rate flow used in the tax calculation and the calculated tax amount.
After entering your transaction details, use the Tax Simulator tools to analyze the tax calculations for your transaction:
View Tax Log - Use the View Tax Log option on the Tools menu to generate a log file of transaction activity. The log file provides details of all processing done on a transaction, including a list of tax rules that were not evaluated successfully.
Detail Tax Lines window - Use the Detail Tax Lines window to view the calculated tax lines for the transaction. The window displays, for each transaction line, the applicable tax with the corresponding tax configuration details, including tax regime, tax, tax jurisdiction, tax status, tax rate code, tax rate, and tax amount. See: Managing Detail Tax Lines for more information.
Rules window - Use the Rules window to view the tax rules that were applied to each tax line for each tax calculation process. For each rule type, you can view the processed result and verify whether the result was determined by a tax rule or the default value. If a tax rule was applied, you can also determine the associated tax rule and tax condition set. See: Tax Determination Processing for more information.
Summary Tax Lines window - Use the Summary Tax Lines window to view the summary tax lines for your Payables transactions. For each applicable tax, you can view the total tax amount across all transaction lines, with the corresponding tax configuration details, including tax regime, tax, tax jurisdiction, tax status, tax rate code, and tax rate.
Tax Distributions window - Use the Tax Distributions window to view the resulting distributions information and any associated recovery details for your Payables transactions.