General Ledger

Oracle Fusion Tax – the death of GL tax

Oracle are continuing their efforts to improve and simplify the tax module.

In R12 eBTax, the ability to enter tax on the GL line was possible but was 100% manual with no ability for rules to kick in. It also posed a risk because if the user did not flow the correct path, they could accidentally enter a journal line against a tax account but the system wold not have recognised it as a tax entry and this would cause issues with tax reporting.

So, Oracle development have stopped the ability to use assign tax rates at the GL level!

Instead, they have added new functionality, a new process which works much the same way as an ADI excel spreadsheet. You enter your journal lines in the spread sheets but can add additional information that would influence the tax determination. You then have the ability to generate the tax that then creates the tax journal lines which can then be uploaded into our GL. The main difference here is that Oracle now stores all the tax information in the common tax repository just like any AP or AR transaction and the link to the journal line in therefore maintained.

This solution ensures a much better tax capture in GL that actually allows rules and therefore reduces the risk of tax setup.

Oracle R12 eBTax, Upload your GL account codes to tax rates from excel!

As part of our eBtax Rapid Install™ solution, (http://www.ebizanswers.net/ebtax-downloads/Oracle-eBTax-11i-to-r12-Upgrade-Rapid-Install.pdf
We have managed to create a way of uploading all the tax rate GL codes directly form Microsoft Excel into Oracle so that all your rates get updated.

The quickest time to update a tax account manually either for a tax rate or a tax recvery rate is 30 seconds. We can load 7000 records in 10 seconds!

we can even prepare te file remotely for you to load in

contact us if you want further information enquiries@ebizanswers.net

Oracle eBTax – reasons not to use Tax on GL Journals

Any transaction that has VAT or Tax on it should be going through the sub ledgers, such as AP and AR and not directly entered into the GL as a journal.

Below is a list of points that should be considered highlighting the issues that may be faced if the choice is to  still use journals to capture VAT.

  • Not possible to determine if it is a sale or purchase (credit) so cannot be used easily for any allocations or VAT returns
  • There are no determining factors on a journal for the tax engine to work so the tax is 100% manual
  • Tax has to be entered and calculated in a certain way or risk accidental posting to a VAT account but not reporting it causing reconciliation issues
  • Not linked to any recovery rates so all AP accounts have to be manually overwritten
  • No Security so can choose a tax rate from a regime that is not linked to the LE/OU and so whilst calculated would not be reported
  • importing journals from ADI can be difficult if the tax is required

please contribute to this list