Best Practice to record Tax amount from external system

Summary:

Hello Experts,

We are currently using an internal billing system that calculates tax amounts externally, outside of Oracle. As part of our Invoice integration process, we would like to ensure that tax amounts are accurately recorded in Oracle Receivables.

Given that tax is not being calculated within Oracle, we would like to confirm the best practice for recording these externally calculated tax amounts. Can we go with below?

• Creating a new memo line with Type “Line” to represent the tax amount.
• Treating this tax line as a standard line item, since Oracle is not performing the tax calculation.

Could you please confirm if this is an acceptable and recommended approach? If not, could you advise on the best method to record externally calculated tax amounts in Oracle Receivables