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    Applies To:: Oracle Service Contracts - How To Calculate Contract Tax Using Tax Code Effectivity Dates (Doc ID 1676700.1)

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    gopikrishna8843
    This document explains how to calculate taxes on service contracts in Oracle Service Contracts (version 12.1.3 and later) by considering changes in tax rates over the duration of the contract. Two new profile options allow taxes to be calculated at the billing schedule level rather than just the contract start date. Implementers can set the profile to calculate taxes when contracts are authored or saved, and a concurrent program handles large calculations in the background. Examples show how different tax rates are applied based on the invoice date of each billing schedule.

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    Applies To:: Oracle Service Contracts - How To Calculate Contract Tax Using Tax Code Effectivity Dates (Doc ID 1676700.1)

    Uploaded by

    gopikrishna8843
    51 views5 pages
    This document explains how to calculate taxes on service contracts in Oracle Service Contracts (version 12.1.3 and later) by considering changes in tax rates over the duration of the contract. Two new profile options allow taxes to be calculated at the billing schedule level rather than just the contract start date. Implementers can set the profile to calculate taxes when contracts are authored or saved, and a concurrent program handles large calculations in the background. Examples show how different tax rates are applied based on the invoice date of each billing schedule.

    Original Description:

    Calculating Taxes

    Original Title

    Calculating Taxes

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    This document explains how to calculate taxes on service contracts in Oracle Service Contracts (version 12.1.3 and later) by considering changes in tax rates over the duration of the contract. Two new profile options allow taxes to be calculated at the billing schedule level rather than just the contract start date. Implementers can set the profile to calculate taxes when contracts are authored or saved, and a concurrent program handles large calculations in the background. Examples show how different tax rates are applied based on the invoice date of each billing schedule.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Download as pdf or txt
    51 views5 pages

    Applies To:: Oracle Service Contracts - How To Calculate Contract Tax Using Tax Code Effectivity Dates (Doc ID 1676700.1)

    Uploaded by

    gopikrishna8843
    This document explains how to calculate taxes on service contracts in Oracle Service Contracts (version 12.1.3 and later) by considering changes in tax rates over the duration of the contract. Two new profile options allow taxes to be calculated at the billing schedule level rather than just the contract start date. Implementers can set the profile to calculate taxes when contracts are authored or saved, and a concurrent program handles large calculations in the background. Examples show how different tax rates are applied based on the invoice date of each billing schedule.

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    of 5

    4/20/2015 Document1676700.

    OracleServiceContractsHowToCalculateContractTaxUsingTaxCodeEffectivity
    Dates(DocID1676700.1)

    InthisDocument

    Purpose
    Scope
    Details
    KeyFunctionality
    ImplementationStepsCalculateTaxatBillingScheduleLevel
    Examples
    NotesonFunctionality
    References

    APPLIESTO:

    OracleServiceContractsVersion12.1.3andlater
    Informationinthisdocumentappliestoanyplatform.

    PURPOSE

    Thetaxrateanditseffectivitycanchangeoverthedurationofacontract.Hence,serviceorganizationsneedto
    provideanaccuratepictureoftheestimatedtaxthatmaybeincurredonthecontract.PriortoRelease12.1.3+,
    theapplicationcalculatedtheestimatedtaxbasedontheline/sublinestartdate.WithRelease12.1.3+,Oracle
    ServiceContractsprovidesuserswithanoptiontocalculatetaxatcontractbillingscheduleleveltherebyconsidering
    thechangesintaxrateeffectivityatthatlevel.

    Thisdocumentexplainsthenewfunctionalityandhowtoimplementit.

    Note:Thisfunctionalityisavailablein12.1.3+withtheapplicationofPatch16601269:R12.OKS.B(seeDocID
    1676672.1fordetailsoffixedfiles).

    SCOPE

    ThisdocumentisintendedforServiceContractsusersandimplementers.KnowledgeoftheEBSTaxsetup
    requiredisassumed.

    DETAILS

    For12.1.3:YoumustapplyPatch16601269:R12.OKS.Borapatchcontainingnewerversionsoftherelevant
    filesforthefunctionalitydescribedbelowtobeavailable(seeDocID1676672.1fordetailsoffixedfiles).

    KeyFunctionality

    Profileoption'OKS:CalculateTaxatSchedule':thisdetermineswhethertheneworexistinglogicisusedfor
    taxcalculation.Theprofilemustbesetto'Yes'tousethenewlogic.Bydefault,thevalueoftheprofileis
    'No'.
    Profileoption'OKS:SubLineThresholdValuetoLaunchaConcurrentProgram':Ifthenumberofsublinesin
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    contractdocumentexceedsthevaluespecifiedbythisprofileoption,anewconcurrentprogram'Service
    ContractsCalculateTax'islaunchedinthebackground.Ifthethresholdisnotexceededthecalculationis
    doneonline.
    Concurrentprogram'ServiceContractsCalculateTax':handlesthelogicofcalculatingthetaxesinthe
    background.Whilsttheprogramisrunning,userswillbeunabletoeditthecontractwhichisbeing
    processed.
    Button'CalculateTax'onContractauthoringform:itthevalueofprofileoptionOKS:CalculateTaxat
    Scheduleissetto'Yes',thisbuttonisvisible.Whenthisbuttonisclicked,thetaxfortheentiredocument
    (line/subline/schedule)iscalculatedaccordingtothenewlogic.

    ImplementationStepsCalculateTaxatBillingScheduleLevel

    1.Setupthevalueofprofile"OKS:CalculateTaxatSchedule"to'YES'.

    2.Authoranewservicecontractnoticethenewbutton'CalculateTax'inthe'Pricing/Billing'subtabunder
    ContractSummarytab.

    3.EnterServicelinedetails.Notethatuponsavingtherecords,the'TaxAmount'fielddefaultstozero,even
    thoughthetaxsetupsareinplace.Youcancalculatetaxateachservicelinelevelbyclickingon'CalculateTax'
    buttonin'Pricing/Products'subtabunderContractLinestab.However,thisapproachisrecommendedonlywhen
    youwanttocalculate/recalculatetaxamountforspecificcontractlines.

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    4.Afterenteringtherelevantcontractdetails(includingline/sublinebillingschedules),navigateto
    the'Pricing/Products'subtabunderContractSummarytabandclickon'CalculateTax'button.Thiswillinitiate
    calculationoftaxfortheentirecontractdocument.

    5.Thetaxcalculationcanbedoneeitheronline,orusingaconcurrentprogram,dependingonthevalueofprofile
    option'OKS:SubLineThresholdValuetoLaunchaConcurrentProgram'.Ifthenumberofsublinesincontract
    documentexceedsthevaluespecifiedbythisprofileoption,anewconcurrentprogram'ServiceContracts
    CalculateTax'islaunchedinthebackground.

    6.Whiletheconcurrentprogramisrunning,thecontractislockedsothatusersareunabletoupdatethecontract
    document.

    7.Uponsuccessfulcompletionoftheprogram,taxamountgetscalculatedfortheentiredocument.Incaseof
    anyerrors,checkthelogfileoftheconcurrentprogram.

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    4/20/2015 Document1676700.1

    8.Whencalculatingtaxatschedulelevel,theInvoiceDatedefinedforeachbillingscheduleispassedtoOracleE
    BusinessTaxforcalculatingtax.IfthereisaneffectivetaxratedefinedasoftheInvoiceDate,thisisusedfor
    calculatingthetaxamount,otherwiseitwillbezero.Thereisnoprorationlogicforcalculatingthetaxamountat
    billingschedulelevel.

    9.Thetaxcalculatedatbillingschedulelevelisrolleduptosublinelevel,whichinturnisrolleduptocalculate
    lineleveltaxamount.

    Examples

    Tobetterunderstandhowtaxgetscalculatedatbillingschedulelevel,refertotheusecasesbelow.Please
    notethatinalltheusecases,allparametersexceptthetaxeffectivityremainconstant:

    Invoice Bill BillFrom BillTo Tax Tax TaxRate Tax Total


    Date Amount Effectivity Effectivity Amount Amount
    (A) From To (B) (A+B)

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    01Sep 1000 01Sep 30Sep 01Jan 10% 100 1100


    2013 2013 2013 2013

    01Sep 1000 01Sep 30Sep 15Sep 10% 0 1000


    2013 2013 2013 2013

    01Sep 1000 01Sep 30Sep 01Sep 10% 100 1100


    2013 2013 2013 2013

    NotesonFunctionality

    Ifchangesaremadetooneormorecontractlines,thenewtaxapplicablewillnotbeshownonthecontract
    unlessthe'CalculateTax'buttonisexplicitlyclicked.
    Evenifthe'CalculateTax'buttonisnotclicked,thecontractwillstillpasstheQAChecksuccessfully.Thetax
    amountateachlineisdefaultedtozero,whichisavalidvaluefortheQACheckprogram.
    TheQACheckprogramwillcompletewithanerrorifthe'ServiceContractsCalculateTax'concurrent
    programisstillrunningatthetimeofQACheck.

    Didn'tfindwhatyouarelookingfor?

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