4 Replies Latest reply on Jun 8, 2010 8:33 PM by nu2010

    Use Tax Calculations

    Srini Varadarajan Master

      How is Use Tax handled when the supplier is instructed to drop ship to non-company locations? The PO cannot have multiple lines as the shipping decision is not made in advance.

      We instruct the supplier to attach an excel spreadsheet alon with the invoice detailing the shipping info and investigating alternate options.

        • Re: Use Tax Calculations
          nu2010 Journeyman

          Hi,

          One of the possible options would be to configure your Buyer application such that when a invoice is loaded the application validates the tax on invoice line items. When the invoice does not contain any tax for items where its expected then calculate use tax.

           

          HTH

          -Naveen

            • Re: Use Tax Calculations
              Srini Varadarajan Master

              Dont think any solution OOTB can read attachments. Whether its  Buyer or any application the issue is:

               

              Do you create orders where the shipping information is not certain till the product is ready to be shipped? It should be common in Marketing.

              If ship locations cannot be identified at the time of order; what process is followed to capture the multiple ship locations on the invoice?

              How is use-tax accrued in such cases?

               

              Thanks

              Srini

                • Re: Use Tax Calculations
                  nu2010 Journeyman

                  Yes, there's no OOTB option to read and process attachments. You would need to extend the OOTB Invoice recon. engine and build an XLS parser in your custom code to process the attachments and calculate the use tax.

                    • Re: Use Tax Calculations
                      Srini Varadarajan Master

                      Thank you for your response. My intent was not to restrict solutions to Ariba. My question was:

                       

                      - Are there other business options to handle drop ship taxes WITHOUT using attachments?

                      - How do other companies handle such situations?

                       

                      It does not matter whether one uses Oracle / SAP or Ariba - the handling of taxes is not unique.