Terminology - 11i Taxes vs R12 Taxes
ü What is Configuration Owner Option (COO)? – This is an Setup Option in Tax Manager Responsibility used to control how taxes has to apply on each Event Class for each Application
ü Application = Receivables, Payables etc
ü An event class would be Invoices, Credit Memo, Debit Memo’s etc..
ü After an upgrade the system will set "Configuration Owner Tax Options" for each product and event class
ü This will be set as "Standard Tax Classification Code" or STCC following an upgrade. This, combined with the Direct Rate Rule that are created during the 11i upgrade result in a unique branch of Tax Code to be called when calculating taxes.