R12 Complex Tax Rules

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Presented By

Ashish Nagarkar [email protected]

E-Business Tax in R12 – Building Complex RulesFebruary 25, 2011 (3:00 – 3:45 PM)

http://www.ncoaug.com/index.html


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Agenda

Introduction to E-Business Tax Architecture & Key Concepts

Tax Processing Overview

Tax rules guided flow

Tax Rule Examples

Q & A

Oracle E-Business Tax



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Oracle E-Business TaxIntroduction

New ProductInfrastructure for Tax Knowledge Management

Global System Architecture

Configurable and Scalable

Single Point SolutionTax Service to all E-Business Suite Business Flows

One Application Interface

http://www.ncoaug.com/index.htmlhttp://www.ncoaug.com/index.html


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Agenda




Tax Rule Examples

Q & A




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Oracle E-Business TaxArchitecture Overview



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Oracle E-Business TaxKey Concepts



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l



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Oracle E-Business TaxRegime to Rates Flow with US Sales Tax



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Agenda




Tax Rule Examples

Q & A


O l i



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Oracle E-Business TaxTax Processing Overview

O l E B i T



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• Legal Entities• First and Third Party

• Ship From / To, BillFrom / To, etc.

• Capture First and ThirdParty

• Tax Registrations• Classifications

O l E B i T



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• Party Locations• Define and Validate Party

Locations

O l E B i T



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• Type (Physical Nature)• Categories• Fiscal Classifications• Intended Use

O l E B i T



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• Document Type• Transaction Business

Categories

• Transaction FiscalClassifications



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Agenda



Tax Rules Guided Flow

Tax Rule Examples

Q & A


O l E B i T



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Oracle E-Business TaxTax Rules Guided Flow



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Create Tax Rule

http://localhost/var/www/apps/conversion/tmp/scratch_1/Tax%20Rules/Tax%20Rules.avihttp://www.ncoaug.com/index.htmlhttp://www.ncoaug.com/index.html


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Create Tax Rule

Oracle E Business Tax



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Oracle E-Business TaxProduct Fiscal Classifications Flow




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Oracle E-Business TaxTax Determination Service Flow




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Oracle E-Business TaxTax Determining Factors




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Oracle E-Business TaxTax Determining Factors




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Oracle E-Business TaxRules - Example




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Oracle E-Business TaxRules - Example




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Oracle E-Business TaxTax Determination Services – Solution Overview



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Agenda




Tax Rule Examples

Q & A


T R l E l 1



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Self Assessed Tax

Tax Rules Example 1

• First Party – Based in NY

• Third Party – Registered in NY and not registered in NY

• Sales Tax -- If Vendor is from NY• Self Assessed Tax – If Vendor is NOT in NY

Ta R les E ample 1



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Third Party Registration

Tax Rules Example 1

Tax Rules Example 1



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Tax Rules Example 1

• Create a vendor (Registered out of state)

• Register for Self Assessed Tax

Tax Rules Example 1



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Tax Rules Example 1

First Party Tax Profile

Tax Rules Example 1



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Third Party Tax Profile

Tax Rules Example 1

Tax Rules Example 1



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• Regular Tax calculated when vendor is in State, NY

Tax Rules Example 1

Tax Rules Example 1



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• Self Assessed Tax calculated when vendor is NOT in State, NY

Tax Rules Example 1

Create Tax Rule



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Create Tax Rule

Guided Tax Rule Entry

(No Tax for Service Items)

Tax Rules 2

http://localhost/var/www/apps/conversion/tmp/scratch_1/Guided%20Tax%20Rule/Guided%20Tax%20Rule.avihttp://www.ncoaug.com/index.htmlhttp://www.ncoaug.com/index.html


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Tax Rules - 2

Scenario

Tax is ‘0’% for Items belonging to category ‘330.10’

Setup

• Define Product Fiscal Classification

• Define Tax Determining Factor Set

• Define Condition Set

• Create Expert Rule Entry• Create an item with category ‘330.10’

Fiscal Classifications



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Product Fiscal Classifications




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What is a Product Fiscal Classification?

A Product fiscal Classification is a classification of productsaccording to their tax requirements, for tax determination and

tax reporting purposes.It is based either on Oracle Inventory Category Sets or E-Business Tax Product Categories.




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Define Fiscal Classifications



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Define Fiscal Classifications

Tax determining Factor Set



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Tax determining Factor Set

Define Condition Set



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Define Condition Set

Expert Rule Entry



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Expert Rule Entry

Create an Expert Rule



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Create an Expert Rule

Agenda



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Agenda




Tax Rule ExamplesQ & A


Questions and Answers



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Questions and Answers

Questions and Open Discussions

Contact Information

Ashish Nagarkar Email: [email protected]

Phone: 630-778-1180

For Presentation Copy Visit

www.astcorporation.com/papers

Documents

R12 Complex Tax Rules