Oracle e-Business Suite R12 and Chinas Golden VAT system

Golden Tax is one of the Golden Projects initiated by the Chinese government to modernize the information technology of China. The Golden Tax project refers to an integrated nationwide value-added tax (VAT) monitoring system. For more information see our previous blog:

China’s VAT and the ‘Golden Tax system’

All businesses are required by law to issue all VAT invoices through the Golden Tax system. Oracle R12 provides a Golden Tax Adaptor application that allows for a seamless integration between Oracle Receivables and the Golden Tax software system. The Golden Tax Adaptor application also streamlines the process of creating VAT invoices against Oracle Receivables documents. This feature integrates with the Golden Tax software provided by the Aisino Corporation, which is the only permitted Golden Tax software in Mainland China.

Some of the Key points that can be seen in the diagram above are:

The Golden Tax Adaptor (GTA) is a central repository of data used by Oracle Receivables and the Aisino Golden Tax system.
The GTA application consists of tables, a workbench, concurrent programs, and XML publisher reports.
Receivables data for invoices, debit memos, and credit memos can be transferred to the GTA by request or periodically.
The Golden Tax Invoice Workbench lets you manage, consolidate, and modify the data that is transferred from Receivables before you export the data.
You can export GTA data files into the Aisino Golden Tax system. You can then generate VAT invoices from the Aisino system and send them to customers.
You can import the data file containing the VAT invoice data from the Aisino software into the GTA. During this import, the VAT invoice data is validated with the corresponding receivables invoice data in the GTA and then updated.
Golden Tax Discrepancy and Invoice Mapping reports let you audit and report discrepancies in data between receivables and VAT invoices.

Some of the major features include:
Supports receivables transactions for invoices, debit memos, and credit memos, for both inventory and non-inventory items.

Golden Tax Invoice Workbench:
Edit receivables data in GTA before you export the data.
Generate the data file.
Control invoice status.
Consolidate multiple GTA invoices.

Invoice Splitting:
The VAT regime in China specifies limits for the maximum amount of a single VAT invoice and for the maximum number of lines that can be printed on a single VAT.
The GTA splits the receivables invoices into multiple VAT invoices in accordance with these limits. Can issue the following VAT type invoices and specify different VAT limits to them:
Special: when a sale is made to another organisation, Special VAT invoice is issued.
Common: if the sale is made to an individual, Common VAT Invoice is issued.
Recycle: if a company that runs a recycle business, as a general taxpayer, it should issue Recycle VAT invoices to purchasers. You can identify the invoice type of receivables invoices when you transfer the receivables invoices to the GTA.

VAT Invoice Tracking:
Track VAT invoices from the Receivables Transactions window.
Track VAT invoices in the Golden Tax Invoice Workbench and View Vat Invoices window.

Transfer Rules:
Help you define the criteria for selecting the receivables data that must be transferred to the GTA. Transfer rules simplify the process of transferring receivables data to the GTA.
When transferring receivables data to the GTA, can use your specific transfer rule instead of specifying all parameters.
Define a rule according to your specific selection criteria.

Sales List Invoices:
A sales list is a document that accompanies the VAT invoice and contains the details of the line items for which the VAT invoice is issued.
When a sales list accompanies a VAT invoice, all detailed line items do not have to be included on the VAT invoice. Instead, you can print a summary line on the invoice and refer to the sales list for details.
When a sales list is issued, receivables invoices do not need to be into multiple VAT invoices. The GTA supports this functionality when the limit on the sales list maximum number of lines is not enforced.

Status Control:
Status control is enabled in the GTA to ensure data consistency.
Once the data is exported from the Adaptor, you cannot modify it in the workbench.
However, once the GTA invoice is consolidated, you cannot modify it in the workbench, unless the consolidated GTA invoice is deleted or unconsolidated.

Consolidate Multiple GTA Invoices:
To generate a single VAT invoice, can consolidate multiple GTA invoices.

Additional VAT Attributes:
Chinese VAT regime classifies items by Item Model and Tax Denomination. These attributes are mandatory for generating VAT.
You can configure the Inventory Item or Receivables Line Transaction flexfields to define these attributes.

Item Cross-References:
You can use item cross-reference functionality from Oracle Inventory when the description to be printed on the VAT invoice is different from the internal item description.

Auditing and Reconciliation:
Provides a discrepancy report that helps you identify the data discrepancies between Oracle Receivables and the Aisino Golden Tax System.

Master Data Export:
Provides support for exporting your item and customer master data to the Aisino Golden Tax System.

Purging:
You can purge data from the GTA tables to minimize data load and improve system performance.

For more information on this topic, please visit the following:
Understanding China’s VAT and Golden Tax Systems and how to integrate these with Oracle.
Chinas VAT and the Golden Tax System

Laura Stockley
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Laura Stockley

Consultant at eBiz Answers Ltd
Laura graduated from University with a degree in Business Studies, and has been working as an Oracle eBTax consultant for several years now, with both R12 eBTax and Fusion (Oracle Cloud) Tax. Focussing primarily on the tax module and its components, Laura also works on the other financial modules and understands how they integrate with the tax engine. Laura has worked on projects with multiple clients covering all aspects of the tax module including AP, AR and GL, working on everything from design, configuration, testing to support. An excellent communicator, Laura enjoys interacting with end users and relishes the challenge of resolving their issues; making tax an enjoyable experience, always.
Laura Stockley
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