Oracle Fusion Tax

Adding Real Time Analytics to your Tax Department’s Indirect Tax Toolkit

eBiz Answers have recently added Real Time Tax Analytics to their indirect tax toolkit,  the application has designed specifically with the tax department in mind.   Real Time analytics is a user friendly web application which will inform the tax department of a transaction with a potential tax issue within seconds of it being entered.   This allows the tax department to identify and correct issues at source and empowering the tax department to be involved in the end to end process.

The ever increasing use of technology by Tax Authorities for tax compliance is directly impacting the inner workings of the tax department.     The VAT landscape is changing rapidly across the globe as Tax Authorities introduce technology to crackdown on tax avoidance and ensure corporate tax transparency.    From South American to Europe,  tax authorities are passing regulation to ensure companies provide accounting data in a standardised format, direct from their ERP applications on a monthly basis.  The tax authorities can then check the file, validate the data and ensure compliance.   Poland has introduced electronic filing with SAF-T files from the 1st July to join Portugal, Luxembourg, Austria and Lithuania who are already using the SAF-T filing format.

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Oracle Indirect Tax Toolset for Real Time Compliance

The indirect tax world is changing and with it are the requirements around tax compliance and reporting and the penalties that follow when you get things wrong.

Too many companies rely on reporting after the month end has been closed – often too late to make changes or any changes that can be made are done manually with minimal audit trail.

So how can you get more out of your tax engine to reach total compliance?

eBiz Answers are pleased to introduce their Oracle indirect tax auditor toolset that provides analysis of your data in real time. No longer do you need to wait until after the month end has closed to check the data for issues before the tax returns are submitted, our eBTax Real Time Analytics that is part of our Oracle indirect tax auditor toolset will identify issues within 5 seconds of a transaction being entered.

To arrange a demo of this ground breaking tool, contact us here

Oracle ebusiness tax – when to use a tax jurisdiction

Linking a tax jurisdiction to a tax rate.

Whether its R12 eTax, eBTax or Oracle Cloud (Fusion) Tax, with Oracle eBusiness Suite, every Tax created under a Tax Regime needs a ‘Tax Jurisdiction’ if it wants to be enabled for transactions. Under the Oracle tax engine, a tax jurisdiction only applies to certain types of taxes.

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What Exchange Rate To Use For Foreign Currency Invoices From Domestic Suppliers

Do I have to use the exchange rate on the supplier invoice when entering a domestic invoice with a foreign currency.

Most ERP systems, good ones at least such as Oracle and SAP, will allow you to enter and store an exchange rate to use for your foreign currency invoices so that the foreign currency will then be automatically converted to your ledger currency when posted. There are also times when you may receive a foreign currency invoice, USD is the most common scenario, from a domestic supplier and VAT is charged because the sale is within the same country.

The problem

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Oracle Cloud Tax updated for Release 11

Fusion Tax Release 11 Updates

Below is a high level overview of the new functionality available for the Oracle Cloud tax engine. As you can see, there are quite a few changes.

Estimated Tax on Sales Order now possible.

Create a rule using tax determinant which includes transaction business category = Sales Transaction

Create a UD.

Enhanced Rapid Implementation Spreadsheets:

Data related to tax rules moved from tax config workbook to tax implementation workbook.

The following worksheets are new in the implementation workbook:

  • Tax Exemptions: Create tax exemption configuration for third parties and third-party sites.
  • Party Classifications: Associate party fiscal classifications with the parties.
  • Tax Reporting Codes: Create tax reporting codes and tax reporting types for downstream use in tax reports.
  • Tax Payer Identifiers: Define specific taxpayer identifiers for third parties and third-party sites for purposes of reporting.
  • Product Fiscal Classifications: Create product fiscal classifications for subsequent use in tax rules having a product inventory linked determining factor class.
  • Tax Rules: Define rules that look for a result for a specific tax determination process, such as determining place of supply or tax registration, in relation to a tax on a transaction.

Tax registrations have moved out of party tax profiles task. Now have their own task lists of:

  • Manage Tax Registrations: Use this task to create or edit details related to Tax Registrations, Withholding Tax Registrations, and Taxpayer Identifiers.
  • Manage Tax Exemptions: Use this task to create or edit details related to Tax Exemptions and Withholding Tax Exemptions.

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Oracle – VAT applicability between a parent company and a permanent establishment in Italy

Really this can apply to any EU country and comes under the tax engine rules for Same VAT Group and can apply to any VAT or GST based tax regime.

In reference to the original article by the TMF group on VAT in Italy between a parent company and its child, I thought that i would try and explain this in terms of setting up the tax in Oracle R12 eBTax or Oracle Cloud Tax.

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How to get around the ‘Unable to retrieve content. Additional Information for Remote Region error #6’

During Fusion tax setups, if you come across this error ‘Unable to retrieve content. Additional Information for Remote Region error #6’ when searching for tax rules then the following video should help you out.

 

Visit eBiz Answers at UKOUG APPS 15

Join eBiz Answers at APPS15

From Monday 7th until Wednesday 9th December eBiz Answers will be exhibiting at the 2015 UKOUG Applications Conference and Exhibition being held in the ICC Birmingham. Visit us on Stand No.64 where our expert team will be on hand with the latest news from Oracle on e-Business Tax and available to answer any questions on eBTax or Fusion Tax that you may have.

This event is the largest in the UK for Oracle Applications professionals and this year sees over 300 industry experts coming together to share their experiences with Oracle products. The event theme this year is ‘Embrace, Evolve, Explore’ and features a varied and dynamic agenda full of presentations ranging from end-users telling their stories to high level presentations covering the latest Oracle product roadmaps.

Add to your agenda

eBiz Answers will be presenting two sessions at this years APPS15, with Andrew Bohnet explaining how to get the most out of the tax engine in either Oracle R12 or Fusion.

Wednesday 9th December 2015 from 11:20 – 12:10
eBTax & Fusion Tax – Ask the Experts

In this session, join guest expert Andrew Bohnet from eBiz Answers to discuss any eBTax issue and understand how you can optimize Oracle E-Business Tax to help customers overcome their global tax challenges whilst maximizing global tax compliance. Continue Reading

Oracle Fusion Tax: Tax Registration Options

Tax Registration Options

Every legal entity needs to have its reporting registration options set, just like with Oracle R12.

Option

Description

Impact

Tax Regime

Enter the tax regime for this registration. This is a mandatory value in order to set up your Tax Registration. We also advise that you set a separate Tax Regime for each tax registration number you may have.

If you are using duplicate registration numbers then you need to set the Tax too, however, leave this blank if you don’t care about duplicate tax registration numbers.

The tax regime and optionally and tax are used to determine the correct tax registration at transaction and reporting time.

Registration Type

If applicable, select a classification of the tax registration. Its not mandatory but always a good idea to put one in in case a seeded report requires this information now or in the future.

The predefined tax registration types are specified by the tax authority. The tax registration types are for reporting purposes only.

Registration Number

Enter the company tax registration number assigned by the tax authority – So go ask your tax department for this number. This is the tax number, not the company number!

If you set the tax regime option to use the legal registration number as the tax registration number, then select the registration number from the legal registration numbers in the list of values.

If you set the Allow duplicate tax registration numbers option for the tax, then multiple parties and party sites can use the same tax registration number for this tax.

Oracle Fusion Tax validates the number according to tax authority validation rules, if the validation exists for that country. This means that you need to get the format correct or it may not be accepted, so remove spaces or dashes if needed.

Registration Status

Enter the party’s tax registration status. Oracle Fusion Tax provides these predefined registration statuses:

  • Agent: The party acts as a withholding agent for the tax authority for the applicable tax.

  • Registered: The party is registered for the applicable tax.

  • Not registered: The party is not registered for the applicable tax.

  • XX 123456789 Same VAT Group (eBiz Answers Setup)

Use the tax registration status as a determining factor in tax rules. This values can be added to and used in tax rules

Source

Identify if this party is:

  • Explicit: The party is registered with the local tax authority and has a tax registration number. In this case, you know that the party is registered and the details including the tax registration number.

  • Implicit: The party is not formally registered with the tax authority, but the party is considered to meet one or more requirements for reporting taxes because of the level of business conducted. In this case, you determine that the party is registered but you do not know the tax registration number.

If the source is Explicit the tax registration number is required. If the source is Implicit the tax registration number is not required.

Rounding Rule

The rule that defines how the rounding should be performed on a value involved in a taxable transaction. For example, up to the next highest value, down to the next lowest value, or nearest. We also suggest that you set the rounding rules at the regime level and do not allow rounding override.

At transaction time, the values set at the tax registration level override the values set at the party tax profile level.

Set as self-assessment (reverse charge)

Set to automatically self-assess taxes on procure-to-pay transactions. A self-assessed tax is a tax calculated and remitted for a transaction, where tax was not levied by the supplier but is deemed as due and therefore, needs to be paid by the purchaser. If you set your solution up correctly then we suggest you set this to yes by default even if you don’t currently use Self-Assement!

You can set the self-assessment option at the tax profile level to default to the tax registrations that you create for this party. You can also set it at the tax registration level or on an individual tax line.

Oracle Fusion Tax applies self-assessment to Payable invoices received by the first party according to the tax registration setting. The specific tax registration record is derived either from the Determine Tax Registration rules or from the default tax registration.

Set Invoice Values as Tax Inclusive

Our recommendation is not to use this but if you select this because your party intends to send or receive invoices with invoice line amount inclusive of the tax amount you can use this option or for better control, use rules.

At transaction time, the values set at the tax registration level override the values set at the party tax profile level. In addition, this option at the tax registration level overrides the tax inclusive handling setting at the tax level, but not at the tax rate level.

Collecting Tax Authorityand Reporting Tax Authority

Enter the name of the tax authorities for:

  • Collecting Tax Authority: The tax authority responsible for managing the administration of tax remittances.

  • Reporting Tax Authority: The tax authority responsible for receiving and processing all company transaction tax reports.

Warning – Setting up Tax on Oracle Fusion

Having done quite a bit of set-up on Fusion for tax I am still exasperated as to how bad it is for anyone setting it up. The functionality available, what they have done to bring R12 Tax to the next level, is truly fantastic but getting to that point is crazily frustrating! We developed the eBTax Rapid Install™ tool to allow for a fast implementation. In just 15 minutes we can copy an entire tax set-up for 100 countries from one instance to another. But with Fusion tax, Oracle have introduced the spreadsheet up-loaders! What a joke! Apart form the fact they only cater for the most basic of set ups, (i.e. for a regime upload, its the name, the code and the country, that is it!) there are so many bugs with the loaders that using them actually takes longer than just manually setting up! Because of the missing data that the uploads cannot handle, you have to go back through and edit the conditions and rules anyway. Right now, you can go and edit conditions even if they have been allocated to a rule – something not possible in R12 but it’s essential in Fusion because there are so many bugs. No doubt some idiot will stop you from doing this before they have fixed all the other bugs meaning you will be forever creating new condition sets to replace those that failed in the uploads. Continue Reading

Oracle Fusion Tax – The Good – The Bad – the Ugly

I consider myself one of the leading Oracle R12 eBTax experts around, as it does not matter what module you need tax to be driven from, what country you are rolling out to or how fast you need the solution, there is no one that can touch eBiz Answers and our team for R12 eBTax. We recognized that tax is tax and as such, we brought you a third party tax solution without the need for a third party product with our ‘eBTax Rapid Install™‘ tool that all but eliminated the most time consuming part of eBTax which is the configuration. It took us a long time to develop the eBTax Rapid Install™ and you can imagine our apprehension when we found out several years ago that Fusion Tax comes with inbuilt spreadsheet loaders but as a huge supporter of the eBTax product, it also made a lot of sense and was excited about converting our solution to be loaded via the spreadsheet loaders. Whilst I heard rumors that the loaders were not what they were cracked up to be it was not until i had to start using these spreadsheet loaders that I too side with those that think they are far form perfect and in fact, for eBTax, I would go as far as saying they didn’t work properly right up until release 11. The take more time to figure out and can only load a fraction of the information that you actually need with some frustrating bugs that don’t always do what you think is meant to happen!

So, the good, the bad the ugly, my first thoughts on the Oracle Fusion tax solution.

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Using an eBiz Answers Oracle R12 of Fusion Tax Solution could save you $600,000 a year

eBiz Answers prides itself on improving efficiency and trying to eliminate the risk of non-compliance.

Recent studies have shown that we can save on average 1 to 5 days a month on indirect tax procedures from invoice entry, tax processing and tax reporting.

For a project of 40 countries globally with an average employee cost of $250 a day, the following are the estimated savings per month!

0.5 days saving per month for 40 countries
@$250 per person per day = $60,000 a year
1 days savings per month for 40 countries
@$250 per person per day = $120,000 a year
5 days savings per month for 40 countries
@$250 per person per day = $600,000 a year!
Even for a 5 country roll out with 2.5 days savings per month the yearly savings would be almost $40,000

The real saving however is the fact that you will no longer get any fines because you will have such a solid tax solution that the tax group can monitor and track every transaction going through, identifying the tax issues immediately as they appear.

Why eBiz answers succeed where the big four don’t

The primary reason why eBiz Answers succeeds where others don’t is because we know both VAT and Oracle so we bring the solution with us.
Our lead consultants have 20 years’ experience on global solutions implementing and supporting Oracle ERP projects and all have a financials background that provides the ability to really get into your business to best identify the source information that will ultimately determine your tax. Because we bring the solution with us, rather than wasting your time and money documenting the existing process flows and then trying to manually build your solution from scratch we provide a the solution then we work on the gaps if there are any. Just as any other third party tax solution on the market, we know that tax is tax, the same rules apply to everyone and so we have pre-built these rules.

We have a repository of country tax regimes with all the rates and rules that are needed to meet the majority of your needs but unlike any third party product, all our set up is in Oracle, all standard functionality all within your existing Oracle licence. Our in-house developed ‘eBTax Rapid Install™‘ tool means that we can have you setup, with a fully automated tax solution within minutes that would usually take weeks to manually do. We use this same tool to then migrate the tax solution from instance to instance saving time and ensuring 100% accuracy. We know the Oracle tax engine inside out and more importantly, we know what it can’t do so if we have not already got a work around to missing oracle functionality, we will know the best way to get one.

 

Oracle R12 eBTax Fusion Tax eBiz Answers Solution

The driving factor in our solutions is that Tax is Tax. It does not matter what business you are or where you are located, you will have to abide by the same rules as everyone else and sure, some companies may have different recovery rates or exemptions but the concept for driving these are the same. What we find, time and time again is that when using eBTax, the solution is built from the ground up each time. Consultancies will make a fortune from their clients mapping all the processes and trying to develop the solution with the client who in most cases has knowledge of indirect tax and their business but no idea on how to convert that to an efficient Oracle eBTax solution as they have minimal knowledge of the module. Think of it like converting a book from English to German word for word, the structure in German would not make sense at all and whilst you would get an idea of what is going on, you won’t have the complete picture. We are the translators, we know the tax module inside out, we know the work around and we also know the other modules that use tax so understand the flow of data and where tax will be affecting the various business processes. We take what the tax department requests and we advise them on how Oracle will best handle these requirements What we do is bring that solution with an 80% fit and then we build the 20% to ensure all your needs are met. Think of us as a 3rd party tax provider but without being a 3rd party!

 

 

 

 

Oracle Fusion Tax – Latin Tax Engine, going going gone

Another feature of the Fusion tax solution is the incorporation of the Latin Tax Engine into Oracle Fusion Tax.

This functionality is not available in R12 eBTax and won’t be back ported due to the complexities around threshold handling, but with Fusion, this functionality now exists and so Fusion Tax is becoming the one stop shop that can handle everything tax related.

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