Implementation (Oracle Projects Help)


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Implementation

If your business policies, and the tax laws that govern your business, require you to tax customers for work performed, you need to define the following information in Oracle Receivables and in Oracle Projects.

Oracle Receivables

You can tax Oracle Projects invoices using the tax calculation method of Sales Tax, which is based on customer shipping addresses, or using the method of Value Added Tax, which is based on tax codes assigned to customers or customer addresses.

Define tax authorities, codes, and rates in Oracle Receivables

Refer to the following essay for more details on implementing tax in Oracle Receivables.

Note: Be sure to define at least one tax code of Location in Oracle Receivables if you are using Sales Tax.

Verify transaction types

All transaction types used for Oracle Projects invoices need to be set to not calculate tax. This ensures that only project invoice lines that you specify as taxable are taxed, instead of processing all project invoices lines as taxable automatically. You disable the Tax Calculation option for transaction types used for project invoices in the Transaction Types window in Oracle Receivables.

The predefined transaction types of Projects Invoice and Projects Credit Memo are defined to not calculate tax. If you use the Create Invoice Organization transaction type process to create transaction types, the types are automatically created with the appropriate options since Oracle Projects copies the options for the predefined transaction types.

Set tax profile option

You need to enable the Oracle Receivables Tax: Allow Override profile option to allow overrides of the standard tax calculations when you import invoices from Oracle Projects into Oracle Receivables using AutoInvoice.

Your System Administrator uses the System Profile Values window to set up profile options. See: Setting User Profile Options Oracle Applications System Administrators Guide.

Oracle Projects

You complete the following step to implement tax for Oracle Projects invoices:

Define invoice formats

You define labor and non-labor invoice formats to separate taxable expenditure items and work sites from non-taxable expenditure items and work sites.

If you need to tax or not depending on the type of expense incurred or kind of labor performed, you need an invoice format that separates taxable items from non-taxable items.

A project may involve many task work sites. You can tax the project according to the different task work sites, by defining invoice formats which group by work site. Oracle Receivables then calculates tax using the work site of the invoice line. If your invoice formats do not include a grouping by work site, Oracle Projects uses the project customer work site for calculating tax for taxable invoice lines.

Oracle Projects includes many predefined grouping options, such as Work Site, Expenditure Type and Top Task, Work Site, Expenditure Category.