Take the risks out of compliance by making your ERP work with VAT


Take the risks out of compliance by making your ERP work with VAT
There are many reasons why VAT can introduce variables into your ERP, variables that can be problematic. Something as simple as a change in the supply chain can make changes in the way VAT is handled in your company, and if your ERP doesn’t reflect this change it could lead to heavy penalties when you submit your return.

What happens when you are found to be at fault with VAT?
If you are found to be non-compliant, you are looking at heavy and punishing penalties. These penalties will have a direct impact on your bottom line. If the authorities find that your VAT is not compliant, you will have to re-invoice customers, ensuring that you pay for any debt that is missing.
The companies we know and visit use Oracle for ERP. However, they are not using it effectively for VAT management and returns. And the reason usually lies in the set-up of the tax module they have running with Oracle (eBTax). Whoever set up that module most likely configured it incorrectly, so vital aspects of VAT are managed poorly.
VAT has so many variables, especially with new policy and other aspects such as the status of a customer that it cannot be left to chance. However, some companies are still dealing with VAT manually.
 
Your configuration
Are you confident that your Oracle ERP tax solution has been correctly setup, and meets your fiscal and reporting requirements to ensure that you are fully VAT compliant?
The companies we work with have eBTax set up on Oracle. But it may have been set up incorrectly, and this poor quality configuration means that you aren’t using clear ‘tax logic’. The team that inputs your financial information through the module may be working with a poorly configured module, so that business ‘events’ like a change in supply chain details will have a negative effect.
Businesses that use Oracle and eBTax need to know if the configuration they are using is appropriate. If they don’t know this, the money spent on such a ‘solution’ could simply be a waste.
But how do you know if your configuration of eBTax is correct? How do you know if it is managing and reporting on VAT accurately?
That’s where we come in.
For more information contact us on info@ebizanswers.net or look at our website on www.ebizanswers.net