AP Invoice Rejection - Errors

EBTax
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R12 EB Tax Accounting - Setting Up Tax Accounts
Set up default tax accounts for the taxes in a tax regime to post the tax amounts derived from your transactions. The tax accounts you define serve as default accounting information for taxes, tax rates, tax jurisdictions, and tax recovery rates.

You set up tax accounts under a primary ledger and operating unit. The calculated tax amounts post to the specified operating unit accounts at transaction time. The actual account information that the system uses depends upon subledger accounting rules.

You can also define tax accounts for tax rates, tax recovery rates, and tax jurisdictions. If you define tax accounts at the tax level, these accounts default to the tax rate level for the same tax and operating unit. You can update these default tax accounts in the tax rate setup.

Prerequisites
Before you can set up tax accounts, you may need to complete one or more of these tasks:

Set up primary ledgers and subledgers. (mandatory)

Set up operating units and assign them to primary ledgers. (mandatory)

Set up taxes. (mandatory)

Set up tax rates. (optional)

Set up tax recovery rates. (optional)

Set up tax jurisdictions. (optional)

To set up tax accounts:

Navigate to the Tax Accounts page.

Select the primary ledger to use for tax accounts.

You can only select from primary ledgers in your security profile that have at least one operating unit assignment.

Navigate to the Create Tax Accounts page.

E-Business Tax displays the ledger accounting segments under each tax account field.

Select the primary ledger operating unit to use for tax accounts.

Enter the tax accounts.

You can set up these tax accounts:

General Tax Accounts
Tax Expense. A Payables tax account that records tax amounts from invoice distributions; or a Receivables tax account that records taxes collected from customers and any legal deductions taken from these amounts.

Tax Recoverable/Liability. An account that records tax recovery amounts or relieves tax liability amounts.

Note: If the related tax is recoverable, and you also intend to self-assess the tax, then define a tax recoverable account for the associated recovery rates and a tax liability account for the associated tax rates.

Interim Tax. An account that records tax recovery or liability before payment of an invoice. You must set up an interim tax account for taxes and tax rates that have a deferred recovery settlement. See: Setting Up Tax Regimes for more information.


1.Tax Regimes: ZX_REGIMES_B

2.Taxes: ZX_TAXES_B

3. Tax Status: ZX_STATUS_B

4. Tax Rates: ZX_RATES_B

4. Tax Jurisdictions: ZX_JURISDICTIONS_B

5. Tax Rules: ZX_RULES_B

Tax Account Derivation for Accounts Payable

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For non recoverable taxes, the calculated tax amount is accounted as follows:

Using the tax expense account defined at the TAX RATE.

If it is not defined, then using the item account defined at the AP invoice line level.

For recoverable taxes, the calculated tax amount is accounted as follows:

Using the tax recoverability account defined at the RECOVERY RATE.

If it is not defined then using the tax recoverability account defined at the TAX RATE.

If neither is defined, then the transaction is not validated.

Note: If recovery is DEFERRED, then the tax is accounted in an interim tax account defined at the TAX RATE until a payment is made. Afterwards the tax amount gets transferred to the tax recoverability account.

Self Assessed Tax

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For non recoverable taxes, the calculated tax amount is accounted as follows:

Using the tax expense account defined at the TAX RATE.

If it is not defined, then using the item account at the AP invoice line level.

For recoverable taxes, the calculated tax amount is accounted as follows:

Using the tax recoverability account defined at the RECOVERY RATE.

If it is not defined, then using the tax recoverability account defined at the TAX RATE.

If neither is defined, then the transaction is not validated.

Note: For the liability the credit tax engine considers the tax liability account, which is defined at the TAX RATE.

Tax list - OU Wise
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SELECT hou.organization_id,
       hou.set_of_books_id,
       hou.default_legal_context_id,
       hou.short_code,
       hou.NAME,
       zru.first_pty_org_id party_tax_profile_id,
       zru.tax_regime_id,
       zru.tax_regime_code,
       zxr.tax,
       zxr.tax_status_code,
       zxr.tax_rate_code,
       zxr.tax_jurisdiction_code,
       zxr.rate_type_code,
       zxr.recovery_type_code,
       zxr.percentage_rate,
       zxr.tax_rate_id,
       zxr.effective_from,
       zxr.effective_to,
       zxr.active_flag,
       zxr.attribute3,
       zxr.offset_tax,
       zxr.offset_status_code,
       zxr.offset_tax_rate_code
  FROM zx_party_tax_profile      ptp,
       zx_subscription_details   zsd,
       hr_operating_units        hou,    
       zx_regimes_usages         zru,
       zx_rates_vl               zxr
 WHERE zxr.tax_regime_code         = zru.tax_regime_code  
   AND ptp.party_type_code         = 'OU'  
   AND ptp.party_id                = hou.organization_id
   AND zru.first_pty_org_id        = ptp.party_tax_profile_id
   AND zru.first_pty_org_id        = zsd.first_pty_org_id
   AND zsd.tax_regime_code         = ZRU.TAX_REGIME_CODE
   AND zsd.parent_first_pty_org_id = -99

   AND SYSDATE BETWEEN zsd.effective_from AND NVL(zsd.effective_to,SYSDATE);

SELECT hou.organization_id,
       hou.NAME,
       tax_account_ccid,
       zxr.tax,
       zxr.tax_status_code,
       zxr.tax_regime_code,
       zxr.tax_rate_code,
       zxr.tax_jurisdiction_code,
       zxr.rate_type_code,
       zxr.percentage_rate,
       zxr.tax_rate_id,
       zxr.effective_from,
       zxr.effective_to,
       zxr.active_flag
  FROM zx_rates_vl        zxr,
       zx_accounts        b,
       hr_operating_units hou
 WHERE b.internal_organization_id = hou.organization_id
   AND b.tax_account_entity_code = 'RATES'
   AND b.tax_account_entity_id = zxr.tax_rate_id
   AND zxr.active_flag = 'Y'

   AND SYSDATE BETWEEN zxr.effective_from AND nvl(zxr.effective_to, SYSDATE);

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SELECT z_reg1.tax_regime_id,
  z_reg1.tax_regime_code,
  z_reg1.country_code,
  z_reg1.tax_currency_code,
  z_tx2.Tax_id,
  z_tx2.Tax,
  z_tx2.tax_type_code,
  z_tx2.def_place_of_supply_type_code,
  z_tx2.zone_geography_type,
  z_tx2.def_primary_rec_rate_code,  
  NVL(hou.name,'Global Configuration Owner') OWNER,
  z_stat3.tax_status_code,
  z_stat3.default_status_flag  ,
  z_rate4.tax_rate_code,z_rate4.rate_type_code,z_rate4.rate_type_code,z_rate4.percentage_rate,z_rate4.active_flag,z_rate4.default_rate_flag,z_rate4.default_rec_rate_code
FROM apps.ZX_REGIMES_B z_reg1,
  apps.ZX_TAXES_B z_tx2,
  apps.zx_party_tax_profile z_prof,
  apps.hr_operating_units hou,
  apps.ZX_STATUS_B z_stat3,
  apps.ZX_RATES_B z_rate4
WHERE 1= 1
AND z_rate4.tax_regime_code = z_reg1.tax_regime_code
AND z_rate4.tax = z_tx2.tax
AND z_rate4.tax_status_code = z_stat3.tax_status_code
AND z_stat3.tax = z_tx2.tax
AND z_stat3.tax_regime_code = z_reg1.tax_regime_code
AND hou.organization_id(+) = z_prof.party_id
AND z_prof.party_tax_profile_id = z_tx2.content_owner_id
AND z_tx2.tax_regime_code = z_reg1.tax_regime_code
AND z_reg1.tax_regime_code <> 'VERTEX SALES TAX US'
AND sysdate BETWEEN NVL(z_reg1.effective_from,sysdate) AND NVL(z_reg1.effective_to,sysdate)
AND sysdate BETWEEN NVL(z_tx2.effective_from,sysdate) AND NVL(z_tx2.effective_to,sysdate) 
AND sysdate BETWEEN NVL(z_stat3.effective_from,sysdate) AND NVL(z_stat3.effective_to,sysdate) 
AND sysdate BETWEEN NVL(z_rate4.effective_from,sysdate) AND NVL(z_rate4.effective_to,sysdate) 

order by z_reg1.country_code,z_reg1.tax_regime_code,z_tx2.Tax,z_stat3.tax_status_code, hou.name