Procure to pay
Tax data structures and technical architecture between 11i
and R12 changed significantly. Migration of the 11i data structures and values
is accomplished with automated programs that include built-in assumptions about
how to migrate the information so reconciling 11i and R12 configurations can be
challenging.
The 11i structure for Procurement
consists of a Tax Code and a Tax Group. A Tax Code may have an Offset Tax Code
(to record self-assessed or self-accrued tax liability). A Tax Group may be
used to apply multiple taxes for a single transaction line.
The R12 structure
is a Regime-to-Rate hierarchy: Regime > Tax > Status > Tax Rate.
A Regime will be created for each
Operating Unit and Tax Type. A Tax, Status, and Tax Rate will be created for
each 11i Tax Code that exists in the Operating Unit. In addition, a Tax
Classification lookup code will be created for each 11i Tax Code. Tax Classification
codes created for Payables Tax Codes will have a type of ‘Input’. (ZX_INPUT_CLASSIFICATIONS) A Tax
Rule with type of ‘Direct Rate’ will be created to associate each Tax
Classification Code to the corresponding Tax Rate.
The conditions defined in a Tax Group are migrated as additional
formulas on Tax Rules to determine when each Tax Rate should apply.
An Offset Tax Code would be migrated in the same manner as
a Tax Code but the R12 Tax would be set as an Offset Tax. Offset Tax Rates will
also be flagged and will be linked to the appropriate ‘base’ Tax Rate. Tax
Codes with a recoverable rate that is not equal to 0 will also create R12
Recovery Rates linked to the associated Tax Rate.