R12 EBTax Upgrade Related FAQs for Payables

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1. Why isn't the Allow Tax Applicability Marked for Suppliers or Supplier Sites?

Cause:
The R11i suppliers and supplier sites were not set up to Allow Automatic Tax Calculation.
The Allow Tax Applicability for Supplier /Supplier Site Party Tax Profile is upgraded based on the Automatic Tax Calculation setup for the Supplier/Supplier Site. If the suppliers and supplier sites were set up for Automatic Tax Calculation in R11i, then the upgrade would have marked the Allow Tax Applicability choice.
The only supported method to change your suppliers and supplier sites to mark the Allow Tax Applicability choice is to manually change each supplier and supplier site. Of course, you could always make the changes to the suppliers and supplier sites in your R11i instance and run the upgrade again.


2. Why isn't the Tax Jurisdiction Found when Creating Invoices after R12 Upgrade?

Cause:

There are two possible causes.

1) The product ZX must be installed after upgrading by running License Manager.

2) The upgrade program did not run the Geography Name Referencing program as expected.
Before upgrading, run the License Manager to install the ZX product from the System Administrator responsibility.
After upgrading, run the Geography Name Referencing program from the Trading Community Manager responsibility.

3. Why does the Tax Hierarchy / Application Tax Options Upgraded to an Inactive Status in EBTax?

Cause:

The Tax Hierarchy / Application Tax Options are upgraded from the 11i Setup. In Release 11i, if you had setup Tax Defaulting (at least checked one of the available options - Supplier Site/Supplier/System Options etc), and then the upgrade would have created this with active status.

Since there was no defaulting setup in Release 11i , the upgrade has migrated the tax hierarchy with an inactive status. Please note that this is primarily provided as a backward compatible option and would not be needed in the case of Rules Setup if you leverage the R12 eBTax infrastructure. So once it is set to inactive, you cannot turn it back to active or you cannot re-create (for a Specific Operating Unit and Application).
You can modify the setup (for each Operating Unit and Application-Payables/Purchasing/Receivables etc) in Rel 11i and then run a fresh upgrade which will create the Tax Hierarchy with active status.