When using the Bill from, Bill to, Ship from or Ship to for the Place of Supply is not enough

Traditionally in AR the place of supply is based on the following factors:

Bill From: Legal Entity address Bill To: Customer site

Bill To address given on the Invoice

Ship From: Warehouse Address given as additional information

Ship To: Customer site Ship To address given on the Invoice


But what happens when these are not valid for the transaction. What if a legal entity has a registration in two European countries and has the place of supply in the country which is not their legal entity address. Or there is no Warehouse address for the transaction.

AR has an addition factor for Point of Origin which can be used to determine the place of supply.

Point of Origin is used within the Vertex/Taxware tax engines but it can also be used within standard eBTax rules to determine place of supply (and other tax determination rules). This gives the extra flexibility to be able to drive taxes from different countries on transaction other than Bill/Ship To/From. Or from other scenarios which were previously not possible.


UK based Transaction with for a UK Customer but the Point of Origin of the transactions is from Netherlands

Oracle R12 Transactions Screenshot


Netherlands VAT is applied based on the Point of Origin as the Place of Supply

Oracle R12 detailed Tax lines screenshot


Dan Shanta
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Dan Shanta

Senior Oracle Financials Functional Consultant at eBiz Answers Ltd
Dan has over 10 years Oracle eBusiness experience working across the Financials, Procurement and Projects modules and has joined eBiz Answers in 2016 from the largest UK Oracle ERP Consultancy Practice. Dan has obtained knowledge involved in a number of eBtax implimentations and as well as providing support and training of eBtax to both end users and consultants.
Dan Shanta
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