This is the third part of a series discussing impacts for tax processing when upgrading from 11i to R12. Part III will identify naming characteristics and potential issues of migrated tax components.
The migration programs incorporate a naming convention for 11i components to fit into the R12 structures.
Regime naming is based on the Operating Unit location country and the Type associated with the Tax Code with separate regimes for Payables and Receivables (examples: US-SALES [Payables], US-SALES_TAX [Receivables], DE-Tax [Payables], and DE-VAT [Receivables]). All Regimes are shared by all Operating Units.
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Numbers, spaces, and special characters are removed from the 11i Tax Code to create R12 Tax code and name. Duplicate R12 Tax names can occur during migration. Duplicate Tax names will occur 1) if 11i Tax Codes with the same name exist in multiple Operating Units or 2) if Receivables and Payables Tax Codes with the same name exist within the same Operating Unit.
Status value will usually migrate as ‘STANDARD’ for all Regimes and Taxes.
Duplicate Tax Rate codes can occur for the same reasons as duplicate Taxes. The Tax Rate code value becomes the Tax Classification code value. Users will select the Tax Classification code when applying tax to post-production transactions and using the migrated tax structures so duplicate values may create confusion.
When duplicate Tax or Tax Rate values are migrated, the content owner is assigned as the tax profile identifier for the Operating Unit. This additional field needs to be considered in queries and reports.
Tax Codes in 11i can be manually entered on transactions but can also be defaulted from various sources such as customer site, supplier site, items, System Options, or Financials Options. Default Tax Codes assigned to default source objects in 11i will migrate as default Tax Classification codes to the corresponding source records in R12.