How to Setup Taxes in R12 - High Level Overview

Step 1: Create the Tax Regime

The tax regime is the highest/ultimate level that taxes are rolled up to, typically, a specific country. In this step, the Controls and Defaults must be set. The Control section outlines 4 options. Once the tax is made live, the control options cannot be changed.

The Defaults section will default as applicable to the tax, status, jurisidiction, and tax rate levels, but they can be changed at each level.

Step 2: Create the Tax

One Tax Regime can have multiple taxes defined under it. The tax type, e.g. sales, VAT, use, is determined when the tax is set up. Taxes can be set up by geography type, which allows for taxes at different levels.. For example, in the US, there is can be a tax levied at the State level, one at the County level, and one at the City level.

Step 3: Create the Tax Status

This is used primarily in the UK to define reduced rate, zero rate, etc. taxes. All taxes must have at least one tax status defined, and one of those must have the "Set as Default Status" option checked.

Step 4: Create the Tax Jurisdiction

A tax jurisdiction is a geographic area for which a tax is levied, e.g.Colorado, California, Florida, El Paso County, Los Angeles.

There must be at least one Tax Jurisdiction for each Tax Status with the "Set as default Tax Jurisdiction" selected and the "Default Effective Date" supplied.

Step 5: Create the Tax Rate

Create specific tax rates to be applied for a geography. There must be at least one default tax rate. The tax accounts are also set up in this step.

Step 6: Define Tax Rules

Set defaults for the following rule types:

Place of Supply

Registration

Taxable Basis

Calculate Tax Amounts

Step 7: Make the Tax Live for Transactions

Return back to the Tax created in step 2, and select the Make Tax Available for Transactions option. If it is not available to be checked, the tax is not set up correctly. Any missed setups will need to be completed before this can be setup.

R12 APXINWKB Error Out 'Payables could not calculate tax due to:An unexpected error has occurred'

Applies to:

Oracle Payables - Version: 12.0.0
This problem can occur on any platform.
APXINWKB.fmb

Symptoms

On 12.0 in Production:
There's a problem with viewing and calculating Taxes on R12.
After creating a Tax Regime, Taxes, Tax Statuses, Tax Jurisdictions, Tax Rates and Tax Rules, and while trying to callculate tax the following error message is displayed

ERROR

"Payables could not calculate tax due to:An unexpected error has occurred"

Cause

The issue is caused by the following setup:
There is no defined Rule Set and condition Set

By defining the Rule Set and condition Set the issue will be resolved

Solution

To implement the solution, please execute the following steps:

1. Go into the responsibility: Tax Managers

2. Navigate to Tax Configuration>Tax Rules>Rule Conditions >Rule Results> Rule Order> Rule Sets

3.Define Rule set and Factor Set

4.Go to Tax>Enable Make Tax Available for Transactions

5.Apply and Make sure that no errors are displayed

6. Retest the issue.

5. Migrate the solution as appropriate to other environments.

Tools -> Copy Functionality fails

If your R12 Tools -> Copy Functionality fails with the following error message:

An error occurred while attempting to establish an Applications File Server connection with the node FNDFS_. There may be a network configuration problem, or the TNS listener on node FNDFS_ may not be running. Please contact your system administrator.

Then ensure that the following profile options have the desired value

a) "RRA: Enabled" should be set to "Yes"

b) "RRA: Service Prefix" should be null-ed out , no spaces allowed

After making the changes, Log-out and Login back and retest the issue.

Debug Validate Application Accounting Definition error

1. Please set these profile options:

FND: Debug Log Enabled - Yes
FND: Debug Log Module - %
FND: Debug Log Level - Statement

2. Then run the Validate Application Accounting Definitions concurrent program with the following parameters:
Ledger: Pick the ledger
Uncompiled status only: Yes
Application: Assets
Application Accounting Definition Owner: User

3. Re-run the query with the last Validate Application Accounting Definitions run request ID:

set pagesize 0
set linesize 300

SELECT log_sequence, message_text,substr(module,1,100)
FROM fnd_log_messages msg, fnd_log_transaction_context tcon
WHERE msg.TRANSACTION_CONTEXT_ID = tcon.TRANSACTION_CONTEXT_ID
AND tcon.TRANSACTION_ID=
ORDER BY LOG_SEQUENCE;

This will now return the full debug.

Native PL/SQL Compilation on R12

Oracle recommends PL/SQL compilation (plsql_code_type) to NATIVE. I have tried and I encountered many errors. Almost every script involving PL/SQL code end with ORA-06502.
Programs such as Validate Application Accounting Definition and patch wizard analyze program ended with error. So I changed back to INTERPRETED. Errors are gone.
Maybe I missed something when I set PL/SQL compilation to NATIVE. Until I know what cause the error, I will stick to INTERPRETED