Oracle Tax Reporting Ledger in 11i - · PDF fileDevelopment with Oracle Global Financials. He provides project management, financial and technical services on ERP, financial and back

Oracle EOracle E--Business SuiteBusiness Suite-- Tax Reporting Ledger in Tax Reporting Ledger in

11i.1011i.10Alex Fiteni CMAAlex Fiteni CMA

Fiteni International LLCFiteni International LLCManaging Risk, Managing Risk,

Leading ChangeLeading Change

2/15/20072/15/2007Copyright 2006 Fiteni International Copyright 2006 Fiteni International

LLCLLC 22

Fiteni International LLCFiteni International LLC

�� Fiteni International LLC is a professional Fiteni International LLC is a professional services practice focused on Oracle Eservices practice focused on Oracle E--Business Suite implementations, Business Suite implementations, compliance and process change compliance and process change management. management.

�� Alex Fiteni CMA, President, was most Alex Fiteni CMA, President, was most recently a Director of Applications recently a Director of Applications Development with Oracle Global Development with Oracle Global Financials. He provides project Financials. He provides project management, financial and technical management, financial and technical services on ERP, financial and back office services on ERP, financial and back office systems implementations. systems implementations.


LLCLLC 33

AgendaAgenda

�� IntroductionIntroduction�� OverviewOverview�� Defining a report Defining a report

�� Content OverviewContent Overview�� Running a Report Running a Report �� Other Tax reportsOther Tax reports�� Q&AQ&A


LLCLLC 44

Introduction Introduction

�� Topic: An Overview of the Oracle Tax reporting Topic: An Overview of the Oracle Tax reporting

LedgerLedger

•• The Oracle Tax Reporting Ledger is a comprehensive The Oracle Tax Reporting Ledger is a comprehensive

tool for reporting and extracting tax relevant data from tool for reporting and extracting tax relevant data from

Oracle subOracle sub--ledgers and General Ledger ledgers and General Ledger

�� Audience: Audience:

•• Accountants, Tax Analysts, Oracle Business AnalystsAccountants, Tax Analysts, Oracle Business Analysts

�� Objective: Objective:

•• Develop an understanding of the tax reporting ledger Develop an understanding of the tax reporting ledger

and gain proficiency in building reports and gain proficiency in building reports


LLCLLC 55

OAUG OAUG eLearningeLearning Seminar goalsSeminar goals

Tax

�� The objectives of this OAUG The objectives of this OAUG

eLearningeLearning seminar are to:seminar are to:

•• develop a functional understanding of develop a functional understanding of

the Tax Reporting Ledger (TRL) the Tax Reporting Ledger (TRL)

•• gain some knowledge and insight to gain some knowledge and insight to

better support tax to ledger better support tax to ledger

reconciliations, audits, and analysisreconciliations, audits, and analysis

•• create customized reports to met local create customized reports to met local

tax reporting needs tax reporting needs


LLCLLC 66

VocabularyVocabulary�� RXiRXi –– Report Exchange an extract and reporting tool used to prepare Report Exchange an extract and reporting tool used to prepare

reports and output to Excel, and Text formats. reports and output to Excel, and Text formats.

�� TRLTRL –– Tax Reporting LedgerTax Reporting Ledger

�� Sales TaxSales Tax –– Sales taxes are tax levies charged on applicable revenues Sales taxes are tax levies charged on applicable revenues

according to law; and reported and paid periodically to the releaccording to law; and reported and paid periodically to the relevant taxing vant taxing

jurisdictionjurisdiction

�� Use TaxUse Tax –– or consumption tax levied by local jurisdictions where goods or consumption tax levied by local jurisdictions where goods

and services are delivered from outside the jurisdiction but conand services are delivered from outside the jurisdiction but consumed sumed

locally, and are often accrued and paid by the buyer rather thanlocally, and are often accrued and paid by the buyer rather than the seller.the seller.

�� VATVAT –– Value Added Tax imposed on the value of goods and services Value Added Tax imposed on the value of goods and services

(mostly European states use this type of taxation system)(mostly European states use this type of taxation system)

�� GSTGST –– Goods and Services Tax Goods and Services Tax –– used in Canada and Australia used in Canada and Australia –– similar to similar to

VATVAT

�� Consumption TaxConsumption Tax –– Japan levies a consumption tax on the value of Japan levies a consumption tax on the value of

goodsgoods


LLCLLC 77

How Report Exchange (How Report Exchange (RXiRXi) works) works

Define/ModifyAttribute Set

Run TRLVia

Report Request

Review Report Output

for correctness

eBS

Print & Purge

Extract

Output

Extract process

RXiAttributeSets


LLCLLC 88

RXiRXi and TRL Reportingand TRL Reporting

�� RXiRXi--only: Financial Tax Registeronly: Financial Tax Register

•• Contains Attribute SetsContains Attribute Sets

�� When invoked via a Report Request in the Request When invoked via a Report Request in the Request

Center: Center:

•• An Attribute Set is used to extract data from GL, AR An Attribute Set is used to extract data from GL, AR

and/or AP using the Financial Tax Registers to produce and/or AP using the Financial Tax Registers to produce

�� An extract with all required data instantiated in an An extract with all required data instantiated in an

interface tableinterface table

�� A printed or file based outputA printed or file based output

�� A process to purge the interface tableA process to purge the interface table

�� NOTE: NOTE: RXiRXi is not compatible with the XML Publisher as it does not produceis not compatible with the XML Publisher as it does not produce

a file in an XML output formata file in an XML output format


LLCLLC 99

TRL Reporting ScopeTRL Reporting Scope

�� Set of Books level Set of Books level covers all covers all subordinate subordinate transactionstransactions

�� Legal entity is the Legal entity is the sum of all sum of all subordinate subordinate Operating UnitsOperating Units

�� Scope limited to Scope limited to transaction within transaction within a single org.a single org.

Set of Books

Legal entity

Operating Unit


LLCLLC 1010

Tax Reporting Ledger HierarchyTax Reporting Ledger Hierarchy

�� Document #Document #

�� Party identificationParty identification

�� Document valueDocument value

�� Line #Line #

�� Goods, ServicesGoods, Services

�� Value, TaxValue, Tax

�� Tax Value by Tax Value by

JurisdictionJurisdiction

�� Tax AccountsTax Accounts

�� Posting statusPosting status

HeaderLevel

Line Level

Tax Distribution Level

Defining Defining RXiRXi ReportsReports

Part 1Part 1


LLCLLC 1212

Defining a TRL Report using the Defining a TRL Report using the Report Exchange DesignerReport Exchange Designer

�� Steps:Steps:

•• Choose the Financial Tax register Choose the Financial Tax register

DEFAULT layoutDEFAULT layout

•• Copy to and name a new Attribute SetCopy to and name a new Attribute Set

•• Modify the new Attribute Set to extract Modify the new Attribute Set to extract

required datarequired data

•• Add Display, Count and Sum properties Add Display, Count and Sum properties

where requiredwhere required

•• Save new Attribute SetSave new Attribute Set


LLCLLC 1313

Attribute Set ModifiersAttribute Set Modifiers

�� Modify Print Modify Print

HeadingHeading

�� Add or drop Add or drop

Attributes Attributes

�� Modify Attribute Modify Attribute

display formatdisplay format

�� Sum on AttributesSum on Attributes

�� Count on AttributesCount on Attributes

�� Group/Break on Group/Break on

AttributesAttributes

�� Determines Display Determines Display

CharacteristicsCharacteristics

�� Determines Determines

Content of ExtractContent of Extract

�� Determines how Determines how

data is printeddata is printed

�� Level and type of Level and type of

summary datasummary data

�� Determines how to Determines how to

print summariesprint summaries


LLCLLC 1414

Defining the Report LayoutDefining the Report Layout

�� Parameters can be printed on every pageParameters can be printed on every page

�� Use of Breaks are key to getting the right Use of Breaks are key to getting the right

summariessummaries

�� Sum, Count totals can be added on Sum, Count totals can be added on

Attribute Breaks, Pages, Running Totals, Attribute Breaks, Pages, Running Totals,

and at Report leveland at Report level

�� Format money and Dates are optionalFormat money and Dates are optional

�� DemoDemo……....


LLCLLC 1515

Defining a TRL ReportDefining a TRL Report

�� In Vision, Responsibility is In Vision, Responsibility is ““RXiRXi

DesignerDesigner””

�� Menu: Set Up Menu: Set Up RXiRXi

�� Available TRL Reports:Available TRL Reports:

•• RXiRXi--only: Financial Tax Registeronly: Financial Tax Register

��DEFAULT DEFAULT ‘‘Tax RegisterTax Register’’

�� ATTRSET2 ATTRSET2 ‘‘Tax Register with Tax RecoveryTax Register with Tax Recovery’’

•• When running a Report RequestWhen running a Report Request


LLCLLC 1616


LLCLLC 1717


LLCLLC 1818


LLCLLC 1919

Define Report HeadingsDefine Report Headings


LLCLLC 2020

Define Date FormatDefine Date Format


LLCLLC 2121

Managing Attribute SetsManaging Attribute Sets

�� Always start with a core Attribute Set Always start with a core Attribute Set

(DEFAULT)(DEFAULT)

�� Rename the copy, then start making Rename the copy, then start making

changeschanges

�� Make sure that the templates are Make sure that the templates are

well testedwell tested

�� Use Applications Security features to Use Applications Security features to

limit access to sensitive informationlimit access to sensitive information

Tax Reporting Ledger Tax Reporting Ledger ContentContent

Part 2Part 2


LLCLLC 2323

Scope of Transaction ContentScope of Transaction Content�� General Ledger: General Ledger:

•• Manual Journal Entries (with Account Method VAT turned on)Manual Journal Entries (with Account Method VAT turned on)

�� Receivables: Receivables: •• Sales Invoices Sales Invoices

•• Credit, Debit Memos Credit, Debit Memos

•• Line, Tax, Invoice AdjustmentsLine, Tax, Invoice Adjustments

•• Cash Applications for Deferred Tax Cash Applications for Deferred Tax

•• Earned, Unearned DiscountsEarned, Unearned Discounts

•• Finance ChargesFinance Charges

•• Miscellaneous Cash ReceiptsMiscellaneous Cash Receipts

�� Payables:Payables:•• Invoices, Credit MemosInvoices, Credit Memos

•• PrepaymentsPrepayments

•• Deferred VATDeferred VAT

�� Global Descriptive Global Descriptive FlexfieldsFlexfields�� Not Included:Not Included:

•• Descriptive Descriptive FlexfieldsFlexfields (columns are included but not populated)(columns are included but not populated)


LLCLLC 2424

Header Level DataHeader Level Data

�� Party Data ElementsParty Data Elements

•• Reporting EntityReporting Entity

•• Partner EntitiesPartner Entities

�� Billing (Customer, Supplier)Billing (Customer, Supplier)

�� ShippingShipping

�� MerchantMerchant

�� Tax IdentifiersTax Identifiers

�� Document Data ElementsDocument Data Elements

•• Document SequenceDocument Sequence

•• Transaction NumberTransaction Number

•• FOB PointFOB Point


LLCLLC 2525

Line (Shipment) DataLine (Shipment) Data

�� Inventory Item Inventory Item

�� Gross Taxable Gross Taxable

AmountAmount

�� Unit QuantityUnit Quantity

�� UOM BaseUOM Base

�� ShipShip--To LocationTo Location

�� ShipShip--From LocationFrom Location

�� AP Product AP Product category or AR category or AR Item ClassificationItem Classification

�� Line Amount Line Amount Taxable basis Taxable basis

�� Line Amount by Line Amount by Tax CodeTax Code

�� No Unit Price No Unit Price


LLCLLC 2626

Tax Distribution DataTax Distribution Data

�� GL Tax Liability AccountGL Tax Liability Account

�� Posted StatusPosted Status

�� Tax CodeTax Code

�� Tax ClassTax Class

�� Taxable Amount Taxable Amount –– Entered, AccountedEntered, Accounted

�� Tax Amount Tax Amount –– Entered, AccountedEntered, Accounted

•• RecoverableRecoverable

•• NonNon--recoverablerecoverable

�� Discounted Amounts Discounted Amounts –– Entered, AccountedEntered, Accounted

Running Running RxiRxi ReportsReports

Part 3Part 3


LLCLLC 2828

Running an Running an RXiRXi ReportReport-- Report ParametersReport Parameters

�� Key Attributes and best practicesKey Attributes and best practices

•• Always enter a Transaction Date Range Always enter a Transaction Date Range

•• Always enter a GL Date Range Always enter a GL Date Range

�� Distribution based reportsDistribution based reports

•• Use a GL Natural Account range for Tax Use a GL Natural Account range for Tax

Liability AccountsLiability Accounts

•• Use a BSV Range for transaction Use a BSV Range for transaction

affecting a legal entityaffecting a legal entity


LLCLLC 2929

Running an Running an RXiRXi Report Report -- ExampleExample

�� Period: MayPeriod: May--0505

�� Transactions: Transactions: •• 1 transaction sale in 1 transaction sale in VaVa StateState

�� Other Parameters:Other Parameters:•• GL Posted GL Posted –– NoNo

•• GL Dates GL Dates –– Required parametersRequired parameters

•• Transaction dates Transaction dates –– Ensure range Ensure range covers at least the GL Dates rangecovers at least the GL Dates range

�� DEMO DEMO …………


LLCLLC 3030


LLCLLC 3131


LLCLLC 3232


LLCLLC 3333

RXiRXi Exporting DataExporting Data

�� RXiRXi reportsreports

•• Text (DEFAULT)Text (DEFAULT)

•• CSVCSV

•• HTMLHTML

•• Tab DelimitedTab Delimited

•• XML is not available at this timeXML is not available at this time

�� NOTE: Report Request can export to a PDF NOTE: Report Request can export to a PDF

if requiredif required


LLCLLC 3434

Seeded Seeded RXiRXi Tax ReportsTax Reports�� ((RXiRXi) US Sales Tax Reports ) US Sales Tax Reports -- Best for US sales and Use Best for US sales and Use

taxestaxes•• Allows DEFAULT Attribute Set onlyAllows DEFAULT Attribute Set only

•• RXiRXi: US Sales Tax Report : US Sales Tax Report -- HeaderHeader

•• RXiRXi: US Sales Tax Report : US Sales Tax Report -- LineLine

�� ((RXiRXi) Financial Tax Register ) Financial Tax Register -- best for VAT and Latin taxes best for VAT and Latin taxes •• Allows variations of DEFAULT and ATTRSET2 templatesAllows variations of DEFAULT and ATTRSET2 templates

•• DEFAULT DEFAULT –– recoverable onlyrecoverable only

•• ATTRSET2 ATTRSET2 –– recoverable and nonrecoverable and non--recoverablerecoverable

�� RXiRXi: Korean VAT Report Extract: Korean VAT Report Extract

�� RXiRXi: Korean Withholding Tax Report Extract: Korean Withholding Tax Report Extract

�� AP Withholding Tax ExtractAP Withholding Tax Extract

�� Czech Export tax reportCzech Export tax report

�� RXiRXi--only: Thai Output Tax Summary Reportonly: Thai Output Tax Summary Report


LLCLLC 3535

Other Tax ReportsOther Tax Reports

�� Reports 9iReports 9i•• Tax by Taxable Account Tax by Taxable Account -- best for Japanbest for Japan•• European** Tax Register European** Tax Register -- best for best for Deferred VATDeferred VAT

�� Interim, Tax, NonInterim, Tax, Non--recoverablerecoverable

•• There are a variety of Globalization There are a variety of Globalization

reports for country specific compliance reports for country specific compliance

needsneeds•• Tax Set Up Verification Report Tax Set Up Verification Report –– used to used to check on whether set up is completecheck on whether set up is complete

�� NOTE: ** for some European countries, use the reports NOTE: ** for some European countries, use the reports that are specifically created for themthat are specifically created for them


LLCLLC 3636

Best practices & proceduresBest practices & procedures

�� Avoid running extracts coincident with the period Avoid running extracts coincident with the period end procedures (e.g. weekly)end procedures (e.g. weekly)

�� Need to run the Need to run the RXiRXi report periodically to review report periodically to review nonnon--posted itemsposted items

�� Visual reconciliation should occur prior to Visual reconciliation should occur prior to performing extract for each control accountperforming extract for each control account

�� Run extracts separately for GL, AP and AR to Run extracts separately for GL, AP and AR to ensure performanceensure performance

�� The extract job should be automated as much as The extract job should be automated as much as possible through CM and other processespossible through CM and other processes

�� Use Event and Demand Alerts in Production Use Event and Demand Alerts in Production instance to proinstance to pro--actively warn of issuesactively warn of issues

�� Ensure that purge and clean up procedures keep Ensure that purge and clean up procedures keep interface table clear interface table clear


LLCLLC 3737

Q & AQ & A

�� Additional ReadingAdditional Reading

•• 115artax.pdf 115artax.pdf –– Chapter 9Chapter 9


LLCLLC 3838

Contact InformationContact Information

�� Alex Fiteni CMAAlex Fiteni CMA�� Cell: +1Cell: +1--650650--799799--59495949

�� Office: +1Office: +1--702702--990990--38693869

�� Fax: +1Fax: +1--603603--590590--25982598

�� [email protected]@fiteni.com

�� www.fiteni.comwww.fiteni.com

�� blog.fiteni.comblog.fiteni.com

�� Professional Services:Professional Services:•• Oracle EOracle E--Business SuiteBusiness Suite

�� GlobalizationGlobalization

�� Statutory and Statutory and Regulatory ComplianceRegulatory Compliance

�� Tax complianceTax compliance

�� Implementation, Implementation, Upgrade, OptimizationUpgrade, Optimization

•• Project ManagementProject Management

•• Software Product Software Product ArchitectureArchitecture

•• Change ManagementChange Management

•• Business Process ReBusiness Process Re--EngineeringEngineering

Documents

Oracle Tax Reporting Ledger in 11i - · PDF fileDevelopment with Oracle Global Financials. He provides project management, financial and technical services on ERP, financial and back