How to Have Separate Payables (AP) and Receivables (AR) Tax Setup?

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EBTax is a centralized tax engine where one tax set up caters to Procure to Pay, as well Order to Cash flows.

If there is still a requirement to have one Payables (AP) specific tax set up and calculation and another Receivables (AR) specific tax set up and calculation (though this defeats the purpose and benefit of eBTax), there are few ways:

1) PAYABLES (AP) AND RECEIVABLES(AR) HAVE DIFFERENT OPERATING UNITS (OU)
a) Create OU specific tax set up (configuration owner as that OU)


b) If it is not needed to see the AP taxes in AR, and vice versa, and they are different OUs, then you can attach an OU specific security profile.
c) You can create an event class, specific applicability rules (i.e only on fulfilling specific conditions), tax will be applicable for that particular event class. Here you can specify that only if the line class in O2C Invoice or a P2P Standard Invoice, then tax is applicable.


d) You can use the place of supply rules to not have tax calculated in a particular application.

2) PAYABLES (AP) AND RECEIVABLES (AR) HAVE THE SAME OPERATING UNITS (OU)

a) You can prevent the tax from being calculated in either application by using rules or unchecking the “Allow Tax Applicability Flag” in Configuration Owner Tax Options.


b) You can prevent manual entry of Regime to Rate Flows by unchecking the “Allow Entry of manual tax lines” at relevant places.


c) There is no way of preventing the tax rate code to be displayed in the Tax Classification Code List of Values (LOV) if the OU is same.
Another suggestion to avoid this setup change in case:
Having the same OU for AP and AR is to set up rules so that the taxes only calculate for the product in which you are targeting.


This combined with perhaps naming the tax classification codes to indicate the usage might achieve the results:

VAT Sales Tax 10
VAT Use   Tax 10