E-Business Tax Notes

These are my personal notes which is a mix of experience and excepts from Metalink.

This note is focused on Oracle functionality and not tax law.

These notes applies mainly to R12.1.x.

Beware these notes may be out of date so please check with http://support.oracle.com for changes.

There are many notes on just one page so be sure to use {ctrl-f} to search.

General Notes

Different Input and Output Recoverable Accounts

How to set up different Input And Output recoverable tax accounts in Ebtax [ID 752248.1]

Applies to

Oracle E-Business Tax – Version: 12.0.5

Information in this document applies to any platform.


In Ebtax it is only possible to configure a single tax recoverable account per rate. Is there

anyway to configure a different Input Tax recoverable account for Payables tax lines and an

Output Tax recoverable for Receivables?


User wants to account the tax liability ( For AR ) and tax recoverability ( in AP) in different

code combinations. Normally both these values are taken from Recoverability/Liability Account

defined at Tax Rate level.

However if user specifies a different code combination at the Tax Recoverability Account in the

associated recovery rate , then recovery in AR would get accounted in a that account. Tax

liability in AP would continue to get accounted in tax rate liability account.

Ship From/To Determination

Use of Bill From/To and Ship From/To varies by module.


  • Legal Establishment: Ship/Bill To
  • Supplier: Ship/Bill From


  • Bill From: Invoice Header
  • Ship From: Invoice Header
  • Bill To: Invoice Header
  • Ship To: Invoice Line


  • Legal Establishment: Ship/Bill From
  • Warehouse: Ship From
  • Customer: Ship/Bill To
  • Salesrep: Point of Origin (POO)
  • Operating Unit: Point of Acceptance (POA)

So when testing for country this must be done for each type of transaction classification:

Payables: Purchasing Transaction

Receivables: Sales Transaction

Tax Recoverable/Liability Accounts

Set tax level accounts to default these onto tax rate level accounts saving a lot of setup.

Tax -> Tax Rate

Receivables: Tax Rate Recoverable/Liability Account

Payables: Tax Rate Recoverable/Liability Account and Tax Recovery Rate Recoverable/Liability Account

VAT Classification Defaults

Application Tax Options – Tax Hierarchy (note from E-Business Tax Purchasing Whitepaper [464243.1])

Prior to E-Business tax, a tax hierarchy would be defined either in payable options or in purchasing options, which would determine the source and the order of defaulting on purchase orders.

The tax hierarchy is now available in E-Business tax through ‘Application Tax Options’ available by each operating unit for Purchasing application.

This is similar to defining the tax hierarchy in ‘Purchasing Options’ prior to release 12.

The tax will be defaulted based on the defaulting order and the source option specified. Application Tax Options is available only for backward compatibility of the former Tax Defaulting Hierarchy.

If you are using complex tax rules you may choose to disable the application tax options. This is a one-time option. Once the application tax option has been disabled, it would not possible to re-enable this option again for that operating unit.

VAT Classification is either entered directly on the transaction or defaulted from via the Application Tax Options:


  • Payables Financial Options
  • Item
  • Supplier
  • Supplier Site
  • Ship to Location


  • Payables Financial Options
  • Supplier
  • Supplier Site
  • Invoice Header
  • Natural Account
  • Reference Document
  • Expense Report Template


  • Product (=item or memo line)
  • Revenue Account
  • Customer Site
  • Receivables System Options


  • Project
  • Customer Site
  • Receivables System Options
  • Expenditure Type/Event Type/Retention
  • Client Extension

Application Tax Options cannot be reactivated

If the Application Tax Options has been deactivated it cannot be re-activated from the forms.

In order to re-activate run the following script:

UPDATE zx_product_options_all
WHERE application_id = ?
AND org_id = ?

Tax Rule Naming

When building tax rules:

  • Rule Code: Must be unique within one combination of "Configuration Owner"+"Tax Regime Code"+"Tax" across all rule types.
    Extra care must be taken when using a Global Configuration Owner.
    So must also be distinct per rule type and per event class code. Also add tax determination set to name.
    • Naming: {rule type code}_{tax determination set}_{event class code}
      If not transaction flow specific: {rule type code}_{tax determination set}
      If with Global Configuration Owner: {tax regime code}_{rule type code}_{tax determination set}_{event class code}
    • Example1: APP_VAT_TAX_RULES_POT
    • Example2: STA_VAT_TAX_RULES_OMT
    • Rule Type Codes:
      • Direct Tax Rate Determination: DTR
      • Determine Place of Supply: POS
      • Determine Tax Applicability: APP
      • Determine Tax Registration: REG
      • Determine Tax Status: STA
      • Determine Tax Rate: RAT
      • Determine Taxable Basis: BAS
      • Calculate Tax Amounts: AMT
      • Determine Recovery Rate: REC
    • Event Class Codes (from Event Class Category = Tax Event Class):
      • Booking: BOT
      • Expense Report: EXT
      • Intercompany Transaction: ICT
      • Purchase Prepayment Transaction: PPT
      • Purchase Transaction: POT
      • Sales Transaction: OMT
      • Sales Transaction Adjustment: SAT
  • Determining Factor Set Code: The fewer DFS – the simpler rule creation as determination sets can be grouped
  • Tax Determination Set: Same rule set can be used in multiple tax rules as long as the tax rule code is unique

Tax Condition Set Naming

Tax condition sets (TDS) should normally be used only within one tax regime.

In case of one OU with multiple tax regimes be sure to prefix with tax regime code.

Example: DK_VAT_EU_G for Danish VAT goods transaction inside EU

The TDS name should be oriented toward purpose and content of the DTS.

Include transaction direction to avoid PO and OM rule clashes for same area.

Direction will also be given by event class in the tax rule.

HOWEVER if tax conditions are the same for two sets you may get:

The same tax conditions already exist in another tax condition set

So if this is the same you may want to denormalize the naming to like: DK_VAT_BILL_TO

If condition is bill_to = DK only.

Things to include in name are:

  • Tax Regime Code: NO_SK_VAT
  • Geography: Domestic = DO, European Union = EU, Outside EU = EX
  • Product Type: GOODS/SERVICES = G/S when mixed then assume G

Basic Default Rules

As per table zx_evnt_cls_mappings:

















Applications supporting these defaults are:

  • Payables
  • Purchasing
  • Receivables
  • Trade Management
  • Cost Management
  • Lease and Finance Management

So order management does not support TRX_BUSINESS_CATEGORY.

So outgoing VAT tax rules should be based on:

  • Event Class Category = Tax Event Class
  • Event Class = Sales Transaction

Tax Rules Not Affecting Transactions

When altering tax rules you must re-select your responsibility for the tax rules changes to take effect as they seems to be cached for performance reasons.

Tax Classification Code = Tax Rate Code

This code is available on:

  • Supplier Site
  • Customer Site
  • AP Invoice Line
  • AR Invoice Line

Based on "Tax Rate Code" defined in "Tax Rates" screen.

Place of Supply

Place of supply drives the use of Tax Jurisdiction.

So if you have setup tax rules for a country A then you must ensure the POS rule also returns country A based on "Bill To" or "Bill From" otherwise your tax rules will render "Not Applicable" which is what you want in some cases though.

Self-Assessed Flag Set

First we need to understand the Self Assessed tax functionality. When a buyer procures goods from an unregistered seller, the buyer is liable to calculate and pay the tax on that invoice. The self-assessed tax amount is not even displayed on the invoice total and can be viewed only at the tax details window. You can obviously uncheck the flag for one item line making it a regular tax.

In a real life scenario I doubt if there can be a case where from a same supplier and for a same invoice some lines can be self-assessed and some lines to have normal tax.

As per the current functionality it is not possible to unchecked the SA flag for any particular line is a transaction.

Functionally we believe that self-assessment is driven by Supplier registration status and not item.

This functionality is not currently supported. Any change in the existing code has to be logged as an ER.

How Tax Determining Factors Work with Tax Rules in R12 E-Business Tax [ID 1108463.1]

Determining Factor Class

Class Qualifier

Determining Factor Names


Setup and Troubleshooting Note


Accounting segments
of the selected ledger

Line Account

Account Combination of the Class qualifier

Note 1109436.1, How To Setup and Troubleshoot a Tax Rule using Accounting Segments in R12 E-Business Tax (EBTax)


Document Fiscal Classification Level

Document Subtype

Document fiscal classification codes of
the class qualifier level; or all document
fiscal classification codes if there is no class qualifier.



Bill From

Bill To

Point of Acceptance(AR transactions)

Point of Origin (AR transactions)

Ship From

Ship To

TCA geography types

TCA geography names of the geography type belonging to the location identified by the class qualifier

Note 1110427.1, How To Setup and Troubleshoot a Tax Rule Based Upon Geography Types such as Bill To and Ship To in R12 E-Business Tax (EBTax)

Legal Party Fiscal Classification

First Party

Legal Activity Codes







Legal classification codes of the legal classification activity.

Note 1109325.1, How To Setup and Troubleshoot a Tax Rule using Legal Classifications (Activity) Codes in R12 E-Business Tax (EBTax)

Party Fiscal Classification

Bill From Party

Bill To Party

Point of Acceptance

Party (AR transactions)

Point of Origin Party (AR transactions)

Ship From Party

Ship To Party

Party fiscal classification types

Fiscal classification codes of the party fiscal classification type assigned to the party identified by the class qualifier.

Note 729486.1
How to Setup and Troubleshoot a Party Fiscal Classification Tax Rule in R12 E-Business Tax (EBTax)

Product – Inventory Linked


Oracle Inventory-based
product fiscal classification types

Fiscal classification codes of the
applicable product fiscal classification

Note 1107666.1 How to Setup and Troubleshoot A Product Fiscal Classification Tax Rule in R12 E-Business Tax

Product – Non-Inventory Linked

Product fiscal
classification level
(Levels 1-5)

Product Category product fiscal classification types

Product fiscal classification codes of
the class qualifier level; or all product
fiscal classification codes if there is no
class qualifier.

NOTE 1108547.1 How to Setup and Troubleshoot a Product Fiscal Classification (Non-Inventory Based) Tax Rule in R12 E-Business Tax (EBTax)


Bill From Party

Bill To Party

Ship From Party

Ship To Party

Registration Status

Status of Agent (withholding agent),
Registered, or Not Registered (seeded values only) for the party identified by the class qualifier. You can use lookup codes to add registration statuses.

Note 1112412.1 How To Setup and Troubleshoot a Tax Rule using Tax Registration Status in R12 E-Business Tax (EBTax)

Transaction Fiscal Classification


Transaction fiscal classification types

Codes used to assign attributes across the transaction business category hierarchy described in the line below.

Note 1114923.1 How To Setup and Troubleshoot a Tax Rule using Transaction Business Categories and Transaction Fiscal Classifications in R12 E-Business Tax (EBTax)

Transaction Generic Classification

Classification Level (Levels 1-5)

Transaction Business Category (seeded value only) with option to add additional levels to hierarchy

Transaction business category fiscal
classification codes of the class qualifier level; or all fiscal classification codes if
there is no class qualifier.

Note 1114923.1 How To Setup and Troubleshoot a Tax Rule using Transaction Business Categories and Transaction Fiscal Classifications in R12 E-Business Tax (EBTax)

Transaction Input Factor


Line Class

Product Type

Intended Use

Tax Classification Code

User Defined Fiscal Classification

LC = Transaction event classes and activities.

PT = Goods or Services
(seeded values only).

IU = Product Intended Use fiscal classification codes

TCC = Tax classification codes.

UDFC = User Defined fiscal classification codes.




TCC = Note 801535.1 How To Setup and Troubleshoot a Tax Rule using Tax Classification Codes in R12 E-Business Tax


User Defined Geography (Tax Zone)

Bill From

Bill To

Point of Acceptance

Point of Origin

Ship From

Ship To

Tax Zone Types

Tax zones of the tax zone type  belonging to the location identified by the class qualifier.

Note 1124208.1 How To Setup and Troubleshoot Tax Zones and User Defined Geography Tax Rules in R12 E-Business Tax (EBTax)

How does the tax registration number validation work? [ID 761250.1]

Applies to:

Oracle E-Business Tax – Version: 12.0 and later [Release: 12.0 and later ]

Information in this document applies to any platform.


— Problem Statement:

In release 12 when adding a tax registration number to a party tax profile, the system throws an error stating that the number is not valid but does not explain why. How can I determine the validation failure reason?


This problem only occurs for the 26 countries listed below which have validation defined.

EU Countries:

  • AT – Austria
  • BE – Belgium
  • CV – Cyprus
  • DK – Denmark
  • EE – Estonia
  • FI – Finland
  • FR – France
  • DE – Germany
  • GR – Greece
  • HU – Hungary
  • IE – Ireland
  • IT – Italy
  • LT – Lithuania
  • LU – Luxembourg
  • LV – Latvia
  • MT – Malta
  • NL – Netherlands
  • PL – Poland
  • PT – Portugal
  • SK – Slovakia
  • SI – Slovenia
  • ES – Spain
  • SE – Sweden
  • GB – United Kingdom

Non-EU Countries:

  • AR – Argentina
  • BR – Brazil
  • CL – Chile
  • CO – Colombia
  • RU – Russia
  • CH – Switzerland
  • TW – Taiwan

— To implement the solution, please execute the following steps::

At this time, validation is not documented in any reference document. Documentation Bug 7708946 has been logged to request that this information be documented in the next release of Oracle documentation.

If you believe that you have a valid registration number that is being rejected, first apply the latest version of the file zxctaxregnb.pls from step 3 in note 875894.1 Using and Troubleshooting Tax Registration Number Issues with R12 E-Business Tax.

Note 564428.1 also has been written to show an example of the validation used in the UK

Note: Tax registration number validation is based upon the country associated with the tax regime (not the customer address).

Module Specific Notes





Order Management







Projects does not support:

  • Product Type
  • Transaction Business Category

General Ledger


Trade Management


Cost Management


Lease and Finance Management


Bugs and Features

Patch 9794557: Support of NULL and NOT NULL Operators in Condition Sets

This patch is included in R12.2.x.

Patch Description

1. Functional Description

Old Behavior


Need to support the Null Not Null Operator in Condition Sets.

New Behavior


Added validations to support Null and Not Null Operator in Conditions Sets.

2. Pre-requisite or Co-requisite which is not included with this patch:

Co-requisite patch: 10018848:R12.ZX.B

3. Patch Applicable for versions/releases:

Oracle Applications Release 12.1.1

4. Target Mini-pack/Family Pack/Release

Oracle Applications Release 12.1.4

Tax Codes not Enabled for Internet Expenses OIE [ID 1312692.1]

The flag: Enable for Internet Expenses Is only visible during tax rate creation.

Add tax codes after tax rate creation by:

Go to Tax Managers Responsibility->Advance Setup Options->Tax look up codes

Query by entering code: ZX_WEB_EXP_TAX_CLASSIFICATIONS

How to Setup and Troubleshoot Offset Taxes in R12 E-Business Tax (EBTax) [ID 1368206.1]

An offset tax calculates and records third party Payables tax liabilities for reverse charges, self-assessments, and, in the United States, Consumer’s Use tax. An offset tax record is a matching, duplicate record with negative amounts that reduces or completely offsets the tax liability recorded in the tax transaction. Use offset taxes when the tax requirement includes creating offset general ledger postings.

You cannot update the recovery rate on an offset tax line. The recovery rate is always 100% in order to create credit entries that match the original tax amounts. When you create an offset tax, you enter a primary recovery type with a recoverable rate of 100% and a 100% recovery rate.

In some Jurisdictions, Offset is also called as Reverse Charge or Self Assessed Tax.


Transaction Business Category does not default in as expected [ID 1290195.1]

Applies to:

Oracle E-Business Tax – Version: 12.1.2 and later [Release: 12.1 and later ]

Information in this document applies to any platform.

Form:ARXTWMAI.FMB – Transactions


Transaction Business Category incorrectly defaults for Receivable and Payable Invoices in the transaction workbench.




Apply patch 10399114:R12.ZX.B and Transaction Business Category will now default correctly in as

SALES_TRANSACTION for Receivable Invoice


INTERCOMPANY_TRANSACTION for Intercompany Transactions

File Version

After applying the patch please check the version of the following files:

(Versions must not be lower than the versions mentioned below)

$ZX_TOP/patch/115/sql/zxpservb.pls 120.32.12010000.12

Ebus Tax: Sales Order Does Not Reflect The Tax As Per The Tax Rule [ID 1381151.1]

Applies to:

Oracle E-Business Tax – Version: 12.1.3 and later [Release: 12.1 and later ]

Oracle Order Management – Version: 12.1.1 to 12.1.3 [Release: 12.1 to 12.1]

Information in this document applies to any platform.


On : 12.1.3 version, E-Bus Tax Integration for OM

Even after applying these patches:

Patch 12612699

Patch 9544144

Patch 8936101

Patch 11686403

Patch 10179680

Tax calculated on sales order is not as per the Tax Rule.


E: unspported category: p_fsc_cat_rec.classification_category= TRX_GENERIC_CLASSIFICATION get_prod_trx_cate_value(-)


OM development provided the cause in OM forum:

"I understand that you have defined tax rules setup based on Transaction Business Category.

OM does not support tax rules based on additional tax attributes.

Refer to Enhancement Rrequest Bug 9036865."


Monitor ER Bug 9036865 – Allow customers to enter tax determining factors on sales orders and quotes – for this functionality in a future release.

R12:Financial Tax Register Report Ended With No Data Found [ID 1329695.1]

Applies to:

Oracle Payables – Version: 12.1.3 and later [Release: 12.1 and later ]

Information in this document applies to any platform.


On : R12 version, EB Tax


Financial Tax register Report ended with No data found.


Expected report to show the records.


The issue can be reproduced at will with the following steps:

1. Tax Manager Super User

2. Submit the Request

3. Financial Tax register report.


The issue has the following business impact:

Due to this issue, users cannot check the data in the report.


The data type of trx_line_id in zx transaction table is NUMBER.

The data type in zx_rep_trx_detail_t was NUMBER(15)

So, during data insertion into zx_rep_trx_detail_t table, the value of trx_line_id was getting rounded. e.g. trx_line_id in zx_rec_nrec_dist was 23.86 in zx_rep_trx_detail_t table it is stored as 24.

So the cursor trx_dist_ccid was failing.


1) Please download and review the readme for Patch 10362073 .

Please log a SR with Oracle Support if a password is required to download the patch.

2) Please apply 10362073 along with its pre-requisites in a test environment.

3) Check the file versions , they have to be the same as given below.

File version:

For R12.0.X

$ZX_TOP/patch/115/xdf/zx_rep_trx_detail_t.xdf 120.12.12000000.5

For R12.1.X

$ZX_TOP/patch/115/xdf/zx_rep_trx_detail_t.xdf 120.12.12010000.4

4) Please retest the issue.

5) If the issue is resolved, please migrate the solution, as appropriate, to other environments

Tax for intra EU vat is not working [ID 1291425.1]

Applies to:

Oracle Receivables – Version: 12.1.1 and later [Release: 12.0 and later ]

Information in this document applies to any platform.


Why isn’t tax for Intra EU VAT not working?


As you can see from tax debug logfile below bill from registration status is showing as not registered, whereas, the tax rule condition is looking for status of registered in order to evaluate to true.:

ZX_TDS_RULE_BASE_DETM_PVT: evaluate_alphanum_condition(+)

p_Operator_Code: =, p_condition_value:REGISTERED, p_trx_value: NOT REGISTERED, p_value_low: Registered, p_value_high: , p_det_factor_templ_code: REGISTRATION, p_chart_of_accounts_id: 50389

ZX_TDS_RULE_BASE_DETM_PVT: evaluate_condition(-)

condition is false

To correct this, navigate via Legal Entity Manager -> query back legal entity manager -> click on legal establishment -> click on Registration tab -> click on tax registration -> create tax registration make sure to input tax registration status of registered. After doing this, create new transaction to re-test.

Include Accounting Segments Parameter On Financial Tax Register Returns No Data Found [ID 1292273.1]

Applies to

Oracle Payables – Version: 12.1.3 and later [Release: 12.1 and later ]

Information in this document applies to any platform.


=== ODM Issue Clarification ===

Run the Financial Register with parameter ‘Include Accounting Segments’ = No, and data returned.

If you run the Financial Register with parameter ‘Include Accounting Segments’ = Yes, no data found.


=== ODM Cause Determination ===



=== ODM Solution / Action Plan ===

On TEST instance apply patch 10303566:R12.ZX.B

If the patch is password protected, log SR with Oracle Support.

This patch will deliver:

zxricoreplugpvtb.pls 120.12.12010000.44

zxriextractwpkgb.pls 120.43.12010000.18

After patch application, verify you have the new versions, than re-test your issue.

If successful, migrate solution to other instances.

Customer Form, Site Issue: Tax Profile Button is Missing in the Site Details Page When Viewed Via a Custom Responsibility [ID 864403.1]

Applies to

Oracle Receivables – Version 12.0.6 and later

Information in this document applies to any platform.

Information in this document applies to any platform.


When maintaining Site Details using the Seeded Receivables Manager Responsibility, you can see the Tax Profile Button that allows you to maintain the Tax information. However, when you are using a Custom Receivables Responsibility, you do not see the Tax Profile Button.

What are the steps required to add this button?


To enable the Tax Profile Button for your Customer Receivables responsibility, do the following:

Responsibliity: System Administrator

Navigation: Security > Responsibility > Define

Query for your Custom Responsibility

Check that in the Menu Exclusions section, you do not have an entry for Name = Customer Overview: Tax Profile (FS)

Take note of the value in Menu, for example: AR_NAVIGATE_GUI, you need if for the next step

The following will traverse through the Sub-menus

Navigation: Application > Menu

Query for the Menu from previous step

Review the SubMenus listed, there should be one with Prompt = Customer, take note of the Submenu value, for example: AR_CUSTOMERS_GUI

Run another Query for the menu from previous step

Review the SubMenus listed, there should be one with Submenu = Customers Function Security Menu

Run another Query for User Menu Name = Customers Function Security Menu

In this list check that the Function = Customer Overview: Tax Profile exists

The menu structure above needs to be in place for the Menu your Custom Responsibility is using.

Also note that you can also maintain the Tax Registration Number using

Responsibility: Tax Manager

Navigation: Parties > Party Tax Profile

Query your customer and maintain the tax information.

Tax Info AR Invoice Line Product Type Defaults To Goods When It Item Flag Inventory Item=No [ID 1231873.1]

Tax Info AR Invoice Line Product Type Defaults To Goods When It Item Flag Inventory Item=No [ID 1231873.1]

Applies to:

Oracle Receivables – Version: 12.1.3 and later [Release: 12.1 and later ]

Information in this document applies to any platform.


How is the product type of an inventory item defaulted to "Service" in an AR invoice?


Following is the logic of defaulting Product Type :-



Else ‘GOODS’.

You can use the same determining factor class and class qualifier as often as necessary

This is not always a correct error. This can also occur when you have been searching for a condition set first.

The error can be avoided by entering the form without a prior search and then immediately click create.

Rules with null evaluators do not work if bill-to is used multiple times [ID 1184613.1]

The note description is wrong as this is a bug that hits many condition detail combinations as long as you are using the same tax condition set.

R12.ZX.A and R12.ZX.B: Patch 10018848



This entry was written by Kent Willumsen , posted on Thursday November 07 2013at 11:11 am , filed under E-Business Tax, Functional Knowledge and tagged . Bookmark the permalink . Post a comment below or leave a trackback: Trackback URL.

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