Oracle Order Management - Tax Calculation Stages in Sales Orders

 

Tax calculation in Oracle Order Management can be controlled at the order header level during any of the following events:

1. Order Entry
2. Order Booking
3. Invoicing

This is configured when Order Types are created in the Order Management Transaction Types window. The specific event to calculate tax for an entire order is specified during setup.

Navigation Steps to Configure:

1. Navigate to:
   India Local Order Management → Oracle Order Management → Setup → Transaction Types → Define → Finance Tab

2. In the Finance Tab, specify the event at which tax should be calculated for the entire order.

Order Entry: Tax Calculation at Entry

• When tax calculation is set to Order Entry, tax is calculated as each order line is entered.
• This is commonly used in scenarios where businesses require the user performing order entry to view the total order amount (including tax) to provide a quote to the customer.
• To include tax in the commitment applied amount, ensure that the tax event is set to Entry.

Order Booking: Tax Calculation at Booking

• When tax calculation is set to Order Booking, tax is calculated on each of the booked order lines.
• This option is suitable for businesses that require tax visibility for booked orders, but wish to improve order entry efficiency by avoiding tax calculation at entry.

Invoicing: Tax Calculation at Invoicing

• When tax calculation is set to Invoicing, no tax calculations occur within Order Management.
• Instead, tax calculation is performed in Oracle Receivables at the time the order or order line is invoiced.