How OIE Works with E-BTax

Oracle/Client Confidential - For internal use only Page 1
Case study on how EB Tax works with Oracle Internet Expenses
1. EBTAX SETUP
The following screen shot shows a basic setup of Regime to Rate Flow where rates for Oracle Internet
Expenses have been defined. This setup will vary depending on the requirement of the Business.
Regime to Rate Flow
Tax Regime:

Subscription to Legal Entity:
Tax:

Tax Status:
Tax Jurisdictions:

Tax Rates: Set up tax rates for your tax statuses and tax jurisdictions. For tax statuses, set up a tax rate
record for each applicable tax rate that a tax status identifies. For tax jurisdictions, set up tax rate records
to identify the tax rate variations for a specific tax within different tax jurisdictions.
Without clicking on Apply go to “Rate Details”
Check the “Internet Expenses Enabled” box to use this tax rate for this period on expense reports.

Note: If you want to update this tax rate code for expense reporting at a later time, create a lookup code
for this tax rate. You must use the tax rate code and name as the lookup code and name. Once the Tax
Rate is saved next time onwards you would not be able to view this check box.
Complete and ensure all defaults are set in the Tax Rules. These rules have to be defined as per the
Business Requirement.
Profile Option - OIE:Enable Tax - The OIE:Enable Tax profile option enables the availability of tax-related
elements on expense reports. Set this profile option to Yes to display the Tax Code field on expense
reports. Set this profile option to No to conceal the display.

2. ORACLE INTERNET EXPENSES SETUP
Expense Report Templates: Attach the Internet Expenses Tax Code to the Expense Items which would
include Tax. Also enable the Template for Internet Expenses.
Navigation: Payables->Setup->Invoice->Expense Report Templates
Tax Code Default: Internet Expenses will use the defaulting setup on the Application Tax Options page in
order to default the tax code in the Line Details page in OIE. When the tax defaulting is not setup, then
Internet Expenses will not be able to default the tax code.
Navigation: Payables responsibility for the Operating Unit->Setup->Tax->E-Business Tax Home
For Task Name 'Create Application Tax Options', click 'Go To Task'
-Click 'Create'
-Enter the Operating Unit
-Enter Application Name 'Internet Expenses'
Enter the Defaulting Order
-Defaulting Order 1 should be 'Expense Report Template'
-Apply

Ensure Defaulting Order Use Status is 'Active'
Bounce the Apache server
The other Oracle Internet Expenses related setups like setup of User Responsibility, Approval methods,
Audit responsibility etc. needs to be defined as per the requirement of the Business.
3. Case Study
The following case study will show how an Expense Report is created with the Tax Code defaulted on the
Expense Report. Then exporting the Expense Report to Payables and then calculating the Tax in the
Payables.
Create Expense Report: Oracle Internet Expenses Responsibility->Create Expense Report

Create Expense Report: General Information:
Ensure that all the mandatory information are defaulted or selected correctly. Like Department,
Reimbursement Currency, Expense Template etc.
Click on the button - ‘Next’
Create Expense Report: Cash and Other Expenses:
Enter the Date, Receipt Amount, Justification and also select the Expense Type from the List of Value.
Ensure the Expense Type which you have selected is attached with the Tax Code in the Expense report
Template.

Click on the button - ‘Details’
Enter the Required fields.
Ensure that the Tax Code has got defaulted, otherwise the tax would not be calculated.
Once done click on the button – Return
This will take you back to Create Expense Report: Cash and Other Expenses page.
Here click on the button – “Next”
Create Expense Report: Expense Allocations:

If any changes need to be done in the expense account allocation, then click on the Account Allocations
Tab and do the necessary changes.
Then click on the button – “Next”
Create Expense Report: Review:
Here review all the information and then if everything is fine, submit the Expense Report by clicking on
the button – “Submit”.

Once the Expense Report is submitted, as per your setup, if approval is required, then the Expense
Report needs to be approved by the Approver.
Once the Approver approves the Expense Report, it needs to be approved and audited by the Payables.
So login as Audit user and query the Expense Report.
Click on button – “Go”. The Expense Report will come up in the page.

Click on the “Apply” button to complete the Audit.
Once the Audit is complete the following message would appear.
Click on “Save” Button. The work would be saved.

Once the work is saved log out from the Auditor login.
Go back to Payables Responsibility and run the Expense Report Export Concurrent Program to import
the expense report to Payables.

Refresh the Concurrent Request until it is Completed Normal.
The log file will show the following which confirms that the invoice is created.
Now go to Invoice Workbench and query the Expense Report. The Invoice Number would be the
Expense Report Number.

Once the Invoice is queried you can find that the Tax is not calculated. You have to calculate the Tax.
Ensure that the Tax Classification Code is populated from the Expense Report at the Line Level.

Once confirmed that the Tax Classification Code is populated in the Line Level, Calculate the Tax by
Clicking on the “Calculate Tax” Button.
Once the Tax is calculated, you can see the following Inclusive tax is calculated in the Invoice.
The distribution would be:

Check the Tax Details by clicking on the “Tax Details” Button.
Note: In Oracle Internet Expenses the Tax calculated is as Inclusive only. Exclusive Tax is not calculated
in Oracle Internet Expenses.
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