Parties tax profile in E Biz Tax

Few readers have asked me to address how to avoid party tax profile issues while configuring AR module.

What is party tax profile?

We need to configure tax profile of the parties involved in any transactions – it may be supplier / customer / legal entity / division or profit centre of a particular legal entity.

In case of supplier and customer tax profiles we need to maintain the tax registrations, classifications details etc are to be maintained based on their data and business nature.  In case of Legal entity and Operating unit we need to configure these into our E Biz Tax.   Legal entity configuration will be performed while we configure E Biz tax through regime.  For Operating unit we need to configure operating unit based tax content.

Here are the steps

Go to your tax manager responsibility and get into parties tax profile page under parties TAB

Select Operating unit tax content from list in party type file

Enter your OU and click go

Click create tax profile

Click configuration options TAB

Configure as follows – Select your Tax Regime

Click apply

Now go back to AR module and check the results

This issue may arise while configuring receivable activities in AR.   This will be solved by configuring the above tax profile.