R12 eBusiness Tax

R12 E-Business Tax

Laurie Loeberlloeber@impacservices.comSenior Principal Consultant

Impac Services

Agenda

• E-Business Tax and Tax Terms

• R12 Tax Structure

• Upgrade/Migration Path

• Options

• Creating a New Structure

What is E-Business Tax?

• New Module in Release 12

• New Tax Engine that automates tax calculation across all Order to Pay and Procure to Pay applications

• Use E-Business Tax to set up and maintain your transaction tax requirements in all geographic locations where you do business

R12 Tax Terms• Tax Regime

• Tax

• Tax Status

• Tax Jurisdictions

• Tax Codes/Rates

• Tax Recovery Rates

• Tax Rules

• STCC

R12 Structure• Canadian Structure

GST AND HST

GST HST

GST STD GST EXEMPT HST STD HST EXEMPT

GST EXEMPT HST EXEMPTBC HST HST STD

Tax Regime

Tax Status

Tax Rate

GST STD

R12 Structure• United States Structure

US SALES TAX

SALES TAX

STANDARD

Tax Regime

Tax Status

Tax RateWA RATE OR RATECA RATE ID RATE

Upgrade and Migration

What happens during Migration (R11 to R12)

• A tax regime was created for each operating unit defined in 11i. These tax regimes, named as 2 digit country code (from the Operating Unit Address) - tax, (ex: US-TAX) hold the tax setup that has been upgraded.

• Tax was created for each tax code

• Tax Status was created for each tax code

• Tax Rate was created for each tax code

• Tax codes are created and stored in a lookup table as "Output" tax classification codes

• The tax regime has a "subscription" defined to the operating unit(s) where taxes are to be calculated for the regime Country.

Upgrade and Migration

• A Tax "Rule" is created as a "Direct rate rule". This sets the relationship between the tax classification code and the tax, tax status and tax rate.

• STCC:After an upgrade, the system will set "Configuration Owner Tax Options" for each product and event class (An event class would be Invoices, Credit Memo, etc). This will be set as "Standard Tax Classification Code" or STCC following an upgrade. This, combined with the Direct Rate Rule that is created during the 11i upgrade result in special code to be called when calculating taxes.

• R12 New or Fresh setup will use the "Determine Tax Regime" tax determination method.

Migrated R11 Structure

US SALES TAX

STANDARD

Tax Regime

Tax Status

Tax RateWA RATE OR RATECA RATE ID RATE

OR RATEWA RATE ID RATECA RATE

Why Move to R12 Structure?

R12 Upgraded Structure has limitations, including:

• Restrictions on creating new tax rules

• Restrictions on Modifying or adding to existing tax rules

• Restrictions on creating new tax jurisdictions

• Restrictions on creating new taxes

• You cannot modify existing tax formulas

• You cannot implement partner integrations such as Vertex or Taxware

Why Move to R12 Structure?

• You can’t set up new tax groups

These limitations often make it difficult to use an upgraded a tax regime for extended periods of time. And, tax laws change or your business may expand into new areas covered by different tax laws.

Benefits/Reasons for setting up fresh structure:

• More flexibility to add/remove tax codes • Able to automate many of the tax decisions through the creation of tax rules • Single Source/Shared Module• All Legal Entities and Operating Units of the company can share the same tax setup.• Individual Operating Units can still ‘own’ tax setup for their specific requirements as needed or as defined by the tax authority.

Option 1-Modify Upgraded Structure

Option 2 – Create New Structure

• End-date the upgraded regime and replace it with a new/freshly configured Regime.

• Option 2 is the recommended method.

How To Create a New Structure

Steps for Creating a new Structure:

Step 1 – Update the Tax Profile

Step 2 – Set up the new Regime to Rate Flow

Step 3 – Set up New Tax Rules

Step 4 – Update the Configuration Tax Options

Step 5 – Update Parties (Suppliers and/or Customers)

Step 6 – Test, Test, Test!

Pre-Requisites

Setting up the Applications for E-Business Tax:

1. Setting Up Tax Users2. Setting Profile Option Values 3. Setting Up Lookup Codes 4. Setting Up TCA Geography Hierarchy 5. Setting Up Legal Entity6. Setting Up Operating Units7. Setting Up Accounts and Accounting Information8. Setting Up TCA Classifications9. Setting Up Oracle Inventory

TCA Architecture

Step 1

Update the Tax Profile

Step 1

Step 2-Create A RegimeTax Regime:

Step 2 – Create a Regime

Assign Regime to a Party

Step 2 – Create a Tax

Step 2 – Create a Tax Status

Step 2 – Create a Jurisdiction

OR Jurisdiction

WA Jurisdiction

ID Jurisdiction

Step 2 – Create a Tax Rate

Idaho-6%

Step 3 – Create a Tax Rule

Before

Determine Place of Supply

Step 3 – Make Tax Available

Step 3 – Regime to Rate Flow

Completed Tax Structure – Regime to Rate Flow

Step 4 – Application Options

• Last – change the Tax Regime from STCC to Direct Rate by End-dating the old Configuration Owner and creating a new Configuration Owner record.

Step 4 – Application Options

Create the new Configuration Owner record.

Step 5 – Update Party Records

• Optionally, Call up specific supplier and/or customer records – and assign them as exempt or as a ‘no-rate’ code.

Step 6 – TEST, TEST, TEST!

AR – Idaho Customer – 6% Tax Rate

AR-Oregon customer – 0% Tax Rate

AP – Washington Supplier – 9.5% Rate

Oregon Supplier -0% Tax Rate

Questions???

R12 E-Business Tax

Laurie Loeberlloeber@impacservices.comSenior Principal Consultant

Impac Services

R12 eBusiness Tax

Documents

R12 Testing tips for Financials Collab 11 · R12 Upgrade – Testing Tips for ... • Invoice Workbench – complexity, subledger accounting • Tax – EBTax integration • Payment

Sales Tax Office for Oracle - CCH Integratorstage.cchintegrator.com/.../sales-tax-office-oracle-r12.pdf · determination by the Sales Tax Office application. ... and Hassle-Free Returns

r12 e Business Tax

Ebusiness suite

Ebusiness stammtisch17112010

Service Tax White Paper R12

Oracle eBusiness Tax integration with Vertex / ADP · PDF fileOracle eBusiness Tax integration with Vertex / ADP ... – Use Tax solution not certified by Oracle for P2P ... – There

18210512 Alta Disponibilidad de Datos en EBusiness Suite R12

Oracle R12 eBusiness Tax: Impacts and Alternativesdocshare01.docshare.tips/files/23939/239390063.pdf · While a client will leverage Vertex O Series to handle the main tasks generally

Configuração TCA R12 - TAX LOCATION

Standard Signs Manualr12-1a..... r12-2..... r12-5..... r12-5a..... r12-5 supplement..... r12-x2

Tax Does Not Calculate in R12 E-Business Tax (EBTAX)

Sample ebusiness tax application workshop v 1.2

Oracle eBusiness Application Supplemental Support Services ... RFP.pdf · Oracle eBusiness Application Supplemental Support Services ... Oracle eBusiness Application Supplemental

R12 Oracle E-Business Tax Fundamentals SG

Juve ebusiness

R12 – EB-Tax Setup

An Introduction to Oracle R12 E-Business Tax

E-Business Tax Purchasing Whitepaper r12

R12 Oracle E-Business Tax – New Features