Simulate Tax Transactions

Use the Oracle Tax Simulator to enter transactions in order to simulate the tax determination process without creating live data. The Oracle Tax Simulator lets you preview the workings of your tax configuration before you enter transactions in an application, such as the Payables or Receivables workbench. In this way a tax manager or implementation consultant can simulate transactions to test the entire tax and related configuration. The Oracle Tax Simulator provides immediate verification that the tax configuration and tax rules were created and applied according to your requirements.

With the Oracle Tax Simulator, you can:

• Enter transactions to simulate tax calculation based on various scenarios.

• View the tax rules that were applied to a tax calculation and the processed result for each rule type.

• Simulate the characteristics of the Payables, Purchasing, and Receivables workbenches and create the tax line for each type of operation.

• View the summarized tax lines for each transaction and the tax lines generated for each transaction line.

• Use the associated tax windows to view and/or override tax lines.

The Oracle Tax Simulator provides these verifications:

• How the tax rules that you have defined for one or more taxes work in conjunction with the defaults you have set for them.

• Whether a tax rule that you expected to have a successful evaluation for a given set of transaction conditions achieved the desired result.

• How the options that you have set at various levels are reflected in the results of tax determination processing. If a certain transaction does not processes taxes as you predicted, then you can use the simulated result to troubleshoot the cause. For example:

  • You defined product tax exceptions, but they were not used on a transaction as expected. You then discover that the Allow Tax Exceptions option was not enabled on the applicable tax rate record.

  • Your supplier record has the option enabled to use offset taxes, but the offset taxes do not appear. You then discover that the tax rate record does not have an offset tax rate associated with it.

Important: These restrictions apply to using the Oracle Tax Simulator:

• Oracle Tax Simulator does not provide simulation of tax recovery processing.

• Oracle Tax Simulator is not meant to test actions that you perform on transactions or transaction lines, such as canceling, deleting and reversing lines.

• You cannot use Oracle Tax Simulator to test or verify user control settings.