Common Project Configuration: Define Transaction Taxes 17-3
What are the operations and
businesses that I have?
Consider the types of operations
and businesses in which you
are engaged and the countries
where you have legal entities
or reporting units. The type
of industries that you work
under (for example, mining,
telecommunications, and
pharmaceuticals), the kind
of operations in which you
engage (for example, trading,
manufacturing, and services), and
the scale of your operations (for
example, your turnover, company
size, and growth) may all impact
your taxability.
Use the classifications feature
to categorize or classify your
first parties under various
classification schemes.
In analyzing your operations,
you can associate the three main
classifications of a transaction to:
• What you do: Use
transaction fiscal
classifications.
• What products you buy
or sell: Use product fiscal
classifications.
• Who your customers and
suppliers are: Use party
fiscal classifications.
What do I do? Identify and classify the
transactions that you enter into.
For example, do you primarily
sell physical goods? If you do,
do you manufacture them, or do
you buy and sell them without
additional manufacturing? Do you
sell these goods in another state
or province? Do you export these
goods? Do you provide or use
services?
Use Oracle Fusion Tax to create
fiscal classifications to classify and
categorize your transactions in
a common manner across your
organization. Use these fiscal
classifications in tax rules to
obtain the appropriate tax result.
What products do I buy or sell? Determine the products that you
buy and sell as they impact the
taxes to which you are subject.
For example, you must register
for, and therefore collect and
remit, service taxes only if you
provide taxable services. If you
manufacture goods for export,
you may not be subject to taxes
on the purchases that go into the
manufacture of such goods.
Where Oracle Fusion Inventory
is installed use the Inventory
Catalog feature with Oracle
Fusion Tax product fiscal
classifications and intended use
functionality to classify the taxable
nature and intended use of the
items. You can then define tax
rules using these classifications to
obtain the appropriate tax result.
Define product category and
noninventory-based intended
use fiscal classifications to
address classification needs for
transactions that do not use
inventory items.