Oracle E-Business Suite R12.1 Accounts Receivables...

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Oracle E-Business Suite R12.1 Accounts Receivables Essentials Partner

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Key Content Contributors

Contributing Companies



• Order to Cash Lifecycle overview

• Overview of Oracle Receivables Process

• Managing Parties and Customer Accounts

Bootcamp Objectives

• Managing Parties and Customer Accounts

• Process Invoices Using Auto Invoice

• Process Invoices

• Bill Presentment Architecture

• Credit Management

• Implement Customer Invoicing

• Receipts

• Implement Receipts



• Implement Receipts

• Tax Processing

• Period Closing Process

• Annexure

Section Objectives

E-Business Tax Architecture Overview

Receivables Tax Process Overview

Receivables Setup Steps for Tax Receivables Setup Steps for Tax

Manage Tax Accounting and Tax Adjustments




Oracle E-Business Tax

Tax Services Request Manager

E-Business Suite

Transaction Tax DataTransaction Data

Tax Services Request Manager

Services

Tax Content Services

Tax Determination Services

Tax Administration Services

Partner

ContentRepository

RecordRepository

Partner

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PartnerTax Content Interface

Partner Tax Services Interface

Tax Partner

Tax Content Tax Services

For Oracle employees and authorized partners only. Do not distribute to third parties.


Section Objectives








Tax Rate CodeReceivables

Invoice

Tax Rules

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Transaction with Tax DistributionsTax Rules Engine

Receivables



Tax Overview

• You use E-Business Tax to set up and maintain these taxes:

– Value Added Tax (VAT) - Imposed on the value added to goods or services – Value Added Tax (VAT) - Imposed on the value added to goods or services

at each stage of their supply.

– Goods and Services Tax (GST) - Sales tax levied on many consumer

products and professional services.



Tax Overview

• E-Business Tax processes Oracle Order Management and Oracle

Receivables Output Tax, which is charged on the supply of taxable

goods and services on customer invoices or revenue items. You

should report Output Tax whenever you account for sales.

• E-Business Tax processes Oracle Payables and Oracle Purchasing

Input Tax, which is paid on supplier invoices.

• Amount Due to the Tax Authority consists of Output Tax on customer

invoices minus any Recoverable Input Tax on supplier invoices.



Value Added Tax (VAT)

• Value Added Tax (VAT) is imposed on the supply of goods and

services paid for by the consumer, but collected at each stage of the

production and distribution chain.

• The VAT charged on a customer invoice is called Output Tax.

• Any VAT paid on a vender invoice is called Input Tax.

• The amount due each period can be : Amount Due = Output Tax –

Input Tax.



Section Objectives







Receivables Tax Setup

• In order to manage tax calculation on Receivables invoices, setup is

required in E-Business Tax as well as Receivables modules.

• E-Business Tax setup:• E-Business Tax setup:

– Regime-to-rate flow

– First and third party tax profiles

– Configuration options

– Tax registrations

– Tax exemptions

– Profile options

– Service subscriptions

– Tax rules

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– Tax rules

• Receivables setup:

• Transaction types

• AutoAccounting



Receivables Tax Setup: Transaction Types

To automatically

assign a default

tax classification

on transaction

lines, select the lines, select the

Default tax

classification box.



Receivables Tax Setup: Tax Exemptions

• Set up tax exemptions in E-Business Tax for customers and customer sites that are exempt from a particular tax

Assign exemption on the customer or customer site



Receivables Tax Setup: AutoAccounting for Tax



Receivables Tax Setup: Profile Options

• eBTax: Allow Manual Tax Lines: Determines which users can enter manual tax lines on the transaction for the tax setups that allow this update.

• eBTax: Allow Ad Hoc Tax Changes: Determines which users can make ad hoc tax changes on the transaction line, such as selecting a different tax hoc tax changes on the transaction line, such as selecting a different tax

status or tax rate.

• eBTax: Allow Override of Customer Exemptions: Controls the display of the Tax Handling field on the transaction line. You use the Tax Handling field to

apply and update customer tax exemptions on transactions.

• eBTax: Allow Override of Tax Classification Code: Controls whether users can update the tax classification code that is defaulted to the transaction

line. You only set this profile option if you intend to calculate taxes using tax

classification codes and the Direct Tax Rate Determination tax rule.

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• eBTax: Invoice Freight as Revenue: Controls whether to consider freight amounts as taxable line items.

• eBTax: Inventory Item for Freight: Lets Order Management use an Inventory item defined as Freight on Receivables transaction lines.



Tax Accounting Overview

Set up Tax Accounting Information for Tax Rate Codes and Receivables Activities

Earned

Miscellaneous Cash

Deferred Tax

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Unearned

AdjustmentsDiscounts

Late charges



Section Objectives







Tax Accounting for Deferred Tax

• Deferred tax recovery is an accounting method that defers the liability

of tax to the time that the invoice is paid, rather than when the invoice

is created.is created.

• Set up for deferred tax recovery is done in E-Business Tax:

– Set the Allow Tax Recovery option for the applicable tax regime.

– Select Deferred as the default recovery settlement for the applicable tax

regime, tax, tax status, and tax rate records.

– Set up an Interim Tax Account in the Tax Accounts page.



Define Receivables Activities



Adjusting Tax on Invoices

Adjustment entry with Receivables Receivables Activity

Approval limit$500

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Validationprocess

Approvedor Pending



Oracle E-Business Suite R12.1 Accounts Receivables...

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