Transaction Tax Reports

Transcription

1 ERP CLOUD Transaction Tax Reports Oracle Financials for EMEA Table of Contents 1. Purpose of the document Assumptions and Prerequisites Transaction Entry Common Report Parameters Other Parameters Report source Financial Tax Register Tax Audit Trail Report Tax Register Report Tax Reconciliation Report Tax Reconciliation by Taxable Account Interim Tax Register Report Sales Tax Report

2 1. Purpose of the document Transaction tax reports contain reports for reconciliation, audit, management and business reporting. All these reports are aimed to help you keep tax ledgers and tax reporting in order. This document explains the implementation and usage guidelines for the following transaction tax reports: Financial Tax Register Report - reports tax information created in Oracle Receivables, Oracle Payables and Oracle Tax repository, including recoverable and non-recoverable taxes. Tax Audit Trail Report - identifies detailed tax and invoice information and the total amounts for each tax rate code in the ledger currency. Tax Register Report - identifies total tax amounts by tax type, tax class and company to include exempt amount and total tax amount for transactions entered in Receivables and Tax repository. Tax Reconciliation Report - lists the transaction line amounts and tax amounts, by tax account, of all Receivables and Tax repository taxable transactions for a given period. Tax Reconciliation by Taxable Account Report - lists taxable transaction information for Payables, Receivables and Tax repository transactions. Generates subtotals by company, tax type, taxable account and tax rate code. Sales Tax Report - provides all of the transaction details from Receivables and Tax repository including invoices, credit memos, adjustments and tax repository entries. It is used as the basis for the periodic sales tax returns required by each state. Also, provides a summary of the total amount exempt for each reason. The Sales Tax Report is intended to report on location based sales tax and should be used for e.g. reporting on value added tax. Interim Tax Register - identifies detailed and summary information of unpaid or partially paid Payables and Receivables transactions that have tax liability created at the payment date. The document explains the pre-requisite setup, important transaction entry aspects, report output details and the business flow. The transaction tax reports can be used for any country without any country specific setup. In this document we are using examples from a Spanish tax setup for illustrations. 2. Assumptions and Prerequisites In this document, the following entities are assumed to have already been set up: Data Security Refer to the Fusion Security topical essay available on cloud.oracle.com Geographies Enterprise Structure Tax Regime to Rate setup Tax Party Profiles for both first parties (legal entities) and third parties (customers and suppliers) Tax Rules Suppliers Customers Procurement Business Function Common Options for Payables and Receivables 2

3 It is recommended that the Implementation Project is complete for your organization before you enter transactions and use the transaction tax reports. If you require further details, refer to the Analyze and Report section of Oracle Financials Cloud (Get Started) web site. 3. Transaction Entry Navigation: Navigator > Receivables -> Billing The receivables transaction below is an example used in the sample report outputs later on in this document. The invoice lines have the following tax rates applied: The following accounting has been created for the invoice: 3

4 Navigation: Navigator > Payables -> Invoices The payables invoice below is an example used in the sample report outputs later on in this document. The invoice lines have the following tax rates applied: The following accounting has been created for the invoice: 4

5 4. Common Report Parameters The transaction tax reports use several common parameters across multiple reports as described in the table below. Parameter Name Required Description Reporting Level Yes Select Ledger, Legal Entity or Tax Registration Number based on your reporting needs. Reporting Context Tax Registration Number Yes if Reporting Level is Ledger or Legal Entity Yes - if Reporting Level is Tax Registration Number Select from the list of ledgers or legal entities. The list depends on the value of the Reporting Level parameter. Select from the list of Tax Registration Numbers. This parameter is optional if Reporting Level is Legal Entity and mandatory if Reporting Level is Tax Registration Number. Users can create a group of legal entities with the same Tax Registration Number that composes so called VAT Group Registrations. Reporting by Tax Registration Number provides the option to report for multiple legal entities using the same Tax Registration Number. Reports can be run for a VAT Group as long as the related legal entities are associated with the same primary ledger. Company Name No Select the company name to be printed in the report header if the Reporting Level is Ledger. The list of values contains each legal entity associated with the ledger selected for the reporting context parameter. The company name parameter is not used as selection criteria only for displaying the report name in the header. 5

6 Parameter Name Required Description Summarization level Yes Select the summarization level based on your reporting needs. It is available only for some of the reports. It is possible to include or exclude transaction lines or run the report at transaction, transaction line or distribution level. The reports for which different summarization level options are available are Financial Tax Register Tax Register Tax Reconciliation Report Sales Tax Report Date range parameters Tax Regime, Tax, Tax Jurisdiction, Tax Rate Tax Reporting Type, Tax Reporting Code Transfer to General Ledger None are mandatory, but at least one pair of the from/to dates has to be specified No No Yes Enter the accounting/transaction/tax point date ranges to filter transactions. This is available for most reports. Reports run by tax point date range display only transactions that reached their tax point date event. For example, transactions that have tax point basis set to payment date will not be reported until they are paid and reports are run by tax point date range. The Interim Tax Register is an exception to this rule (see details in the Interim Tax Register Report section). Select from the list to filter transactions based on the specific regime, tax, rate etc that they are associated with. These parameters provide the possibility to set up a user defined criteria for tax reporting. The tax reporting types can be associated with several tax entities. For example, set up Tax Reporting Type and Tax Reporting Codes to identify the type of supply e.g. Goods or Services and select from the list to filter for transactions based on type of supply. Select to filter transactions based on the transferred status to include only transferred, not transferred transactions or all transactions regardless of transfer status. Include parameters No except for some Some of the reports have a range of include parameters that enable the users to have only specific types of transactions on the report output. For example, select Include Invoices as Yes and other Include parameters to No, to include only invoices in the report. By default all these parameter are set to include the widest range or transaction types. To narrow the report scope down the user has to update the values to No for the transaction types that are to be excluded. Include Finally Reported No Select the value as Yes to select only finally reported transactions or enter No to report only on transactions that are not yet finally reported. This parameter is used in countries where the transactions are required to be finally reported at the end of the tax reporting period. By default this parameter is set to include all transactions. 6

7 5. Other Parameters The transaction tax reports use several other parameters unique to some reports as described in the table below. Parameter Name Register Type Accounting Status Order By Currency/Curr ency range Accounting Period range Account Description Select to report only recoverable taxes, nonrecoverable taxes or both recoverable and nonrecoverable taxes Select to report only accounted transactions, only unaccounted transactions or both accounted and unaccounted transactions Select among the different options to display the report Select to filter transactions based on currency Select to filter transactions based on accounting period Specify different conditions for account code combinations to filter transactions Financial Tax Register Tax Audit Trail Report Tax Reconcilia tion Report Tax Reconcilia tion by Taxable Account Tax Register Report Interim Tax Register Report X X X X X X X X X X X X X X X X X X X X X X X X 6. Report source The following table lists the source supported by each transaction tax report. Source Financial Tax Register Tax Audit Trail Report Tax Register Report Tax Reconciliation Report Tax Reconciliation by Taxable Account Interim Tax Register Report Input Tax X X Output Tax X 7

8 Input tax transactions include documents entered in Payables, and purchase journals and purchase transactions entered in tax repository (also known as manual tax journals). Output tax transactions are documents entered in Receivables, and sales journals and sales transactions enteredtransactions entered in tax repository (manual tax journals). 7. Financial Tax Register Navigation: Navigator > Tools -> Scheduled Processes The Financial Tax Register Report has many parameters to help the user to get the specific information on the report output. Use the Financial Tax Register to export tax records. Define BI Publisher templates based on the information needed for your requirements to facilitate data extraction in various formats such as Excel and CSV. 8

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10 Financial Tax Register Report includes transactions from Payables, Receivables and Tax Repository. The report can be used to review individual transactions, item and tax amounts before tax is declared. Accounting information is also included when the report is run at distribution level. If the report is run by transaction date range, the transaction date is included in the report output. If the user runs the report by from/to accounting date, the accounting date of the transaction is reported. Specifying the from/to tax point dates at report submission means that the tax point date is reported on the output. The report output shows the list of transactions that meet the reporting criteria in the entered currency. It includes transactions from payables, receivables and also tax journals (external tax transactions) showing the item and tax amounts with the third party name and tax registration number included. There is a column for related transaction that shows for example the identifier of the original transaction for adjustments or the invoice associated with a credit memo. There is a possibility to run the Financial Tax Register report by tax register type. The interim tax register part of the report has been removed and this requirement is met by providing the new Interim Tax Register Report. The report can be run for non-recoverable tax register which for payables transactions displays the non-recoverable part of the tax rate applied. The data extract also includes several other attributes that are not displayed on the standard report output. It is possible to customize the report templates (for all reports) and include/exclude transaction attributes as required. 8. Tax Audit Trail Report Navigation: Navigator > Tools -> Scheduled Processes The Tax Audit Trail Report can be used to reconcile payables invoices and external tax transactions at end of the accounting and/or tax reporting period. The report can be submitted using the following parameters: 10

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12 The Tax Audit Trail report includes transactions from Payables and Tax Repository. The report has two possible layouts and they are used based on the value selected for the Report Order by parameter. When the report is ordered by invoices the data on the report output is grouped by accounting periods regardless of what taxes are applied to the invoices. Period totals and invoice count is also displayed for each accounting period as well as for the entire report. When the report is ordered by tax code the data is grouped by tax rates, but also displayed by the accounting period within the same tax rate. Total amounts are provided for each period, tax rate and there also totals for the entire report. 9. Tax Register Report Navigation: Navigator > Tools -> Scheduled Processes The Tax Register Report has many parameters to help the user to get the specific information on the report output: 12

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15 The Tax Register Report includes transactions from Receivables and entries from Tax repository. It includes more detailed information about each transaction than the Financial Tax Register report including Transaction header information as transaction number, related transaction, transaction type, third party information including name, site and TRN, total transaction line and total tax amount Transaction line level information as line number and description, line and tax amount, tax rate name and rate (%) and tax exemption reason. The report is summarized for currency, tax type and tax rate 10. Tax Reconciliation Report Navigation: Navigator > Tools -> Scheduled Processes The Tax Reconciliation Report has the following report parameters to help the user to perform the required account reconciliation: 15

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17 The Tax Reconciliation Report lists the transactions entered in Receivables and entries from Tax repository, by the tax account. The report does not include information regarding to the tax rate, tax jurisdiction or tax regime. The report has an account filter parameter that allows you to specify criteria based on any segment of the accounting code combination. For example, you can filter on a single Natural Account or a range of Natural Account values. 11. Tax Reconciliation by Taxable Account Navigation: Navigator > Tools -> Scheduled Processes The Tax Reconciliation by Taxable Account Report has many parameters to help the user to get the specific information on the report output: 17

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20 The Tax Reconciliation by Taxable Account Report lists transactions from Receivables, Payables and entries from Tax repository. Unlike in the Tax Reconciliation report, transactions are grouped by the taxable account (typically the expense account in payables and the revenue account in receivables). Data are also grouped by company, tax type and tax rate which is also different from the tax reconciliation report. 12. Interim Tax Register Report Navigation: Navigator > Tools -> Scheduled Processes The Interim Tax Register Report has fewer parameters than most transaction tax reports mainly because the report has been designed to display a specific type of transactions. 20

21 The Interim Tax Register Report helps to plan for tax liability due in the future. The report output includes tax amount for transaction lines where the tax becomes liable only after the transaction has been fully or partially paid. In such cases, the tax rate applied to the transaction has the tax point date set as the payment date. Payables and Receivables transactions appear on the Interim Tax Register report until they are fully paid. Note that the report does not support transactions with tax point bases 'payment imported to the tax repository. The report lists transaction at line level and the summary sections have totals by Tax Rate Codes and Tax Rates. The report also has the option to print reporting sequences associated with the transactions. If used, the user can specify what should be the starting sequence number for the first transaction printed on the report. If Print Sequence Number is Yes and From Sequence Number is blank, the report prints reporting sequences starting with 1. 21

22 Once the invoices are fully paid, they will no longer appear in the Interim Tax Register report. 13. Sales Tax Report Navigation: Navigator > Tools -> Scheduled Processes The Sales Tax Report should be used only to report on location based sales taxes and should not be used for other tax types like value added tax. The report has the following submission parameters: 22

23 The main difference between the Sales Tax report and other transaction tax reports is that the Sales Tax report focuses on reporting by tax jurisdictions that are set up based on geographic location e.g. tax jurisdiction for states, counties and cities. The report provides detailed transaction header and line level information including the transaction type and number, third party information, tax rate and tax rate code, exemption reason if any, and line and tax amounts. As mentioned above, the information is grouped by tax jurisdiction and totals are provided for each transaction type within the tax jurisdiction and for the whole tax jurisdiction for the reported period. 23

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