Transcript R12 eBusiness Tax - Home - Northwest Oracle Users Group

R12 E-Business Tax
Laurie Loeber
[email protected]
Senior Principal Consultant
Impac Services
Copyright © 2010, Impac Services. All rights reserved.
Agenda
• E-Business Tax and Tax Terms
• R12 Tax Structure
• Upgrade/Migration Path
• Options
• Creating a New Structure
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What is E-Business Tax?
• New Module in Release 12
• New Tax Engine that automates tax calculation
across all Order to Pay and Procure to Pay
applications
• Use E-Business Tax to set up and maintain your
transaction tax requirements in all geographic
locations where you do business
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R12 Tax Terms
• Tax Regime
• Tax
• Tax Status
• Tax Jurisdictions
• Tax Codes/Rates
• Tax Recovery Rates
• Tax Rules
• STCC
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R12 Structure
•
Canadian Structure
GST AND HST
Tax Regime
GST
Tax
HST
GST STD
GST EXEMPT
GST STD
GST EXEMPT
HST EXEMPT
HST STD
Tax Status
Tax Rate
BC HST
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HST STD
HST EXEMPT
R12 Structure
•
United States Structure
US SALES TAX
Tax Regime
SALES TAX
Tax
STANDARD
Tax Status
Tax Rate
CA RATE
WA RATE
OR RATE
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ID RATE
Upgrade and Migration
What happens during Migration (R11 to R12)
•
A tax regime was created for each operating unit defined in 11i. These tax
regimes, named as 2 digit country code (from the Operating Unit Address) - tax,
(ex: US-TAX) hold the tax setup that has been upgraded.
•
Tax was created for each tax code
•
Tax Status was created for each tax code
•
Tax Rate was created for each tax code
•
Tax codes are created and stored in a lookup table as "Output" tax
classification codes
•
The tax regime has a "subscription" defined to the operating unit(s) where
taxes are to be calculated for the regime Country.
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Upgrade and Migration
• A Tax "Rule" is created as a "Direct rate rule". This sets the
relationship between the tax classification code and the tax, tax
status and tax rate.
• STCC:
After an upgrade, the system will set "Configuration Owner Tax
Options" for each product and event class (An event class would be
Invoices, Credit Memo, etc). This will be set as "Standard Tax
Classification Code" or STCC following an upgrade. This, combined
with the Direct Rate Rule that is created during the 11i upgrade
result in special code to be called when calculating taxes.
• R12 New or Fresh setup will use the "Determine Tax Regime" tax
determination method.
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Migrated R11 Structure
US SALES TAX
Tax Regime
CA RATE
WA RATE
OR RATE
ID RATE
Tax
STANDARD
Tax Status
Tax Rate
CA RATE
WA RATE
OR RATE
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ID RATE
Why Move to R12 Structure?
R12 Upgraded Structure has limitations, including:
• Restrictions on creating new tax rules
• Restrictions on Modifying or adding to existing tax rules
• Restrictions on creating new tax jurisdictions
• Restrictions on creating new taxes
• You cannot modify existing tax formulas
• You cannot implement partner integrations such as Vertex or
Taxware
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Why Move to R12 Structure?
• You can’t set up new tax groups
These limitations often make it difficult to use an upgraded a
tax regime for extended periods of time. And, tax laws change
or your business may expand into new areas covered by
different tax laws.
Benefits/Reasons for setting up fresh structure:
• More flexibility to add/remove tax codes
• Able to automate many of the tax decisions through the
creation of tax rules
• Single Source/Shared Module
• All Legal Entities and Operating Units of the company can
share the same tax setup.
• Individual Operating Units can still ‘own’ tax setup for their
specific requirements as needed or as defined by the tax
authority.
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Option 1-Modify Upgraded Structure
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Option 2 – Create New Structure
• End-date the upgraded regime and
replace it with a new/freshly configured
Regime.
• Option 2 is the recommended method.
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How To Create a New Structure
Steps for Creating a new Structure:
Step 1 – Update the Tax Profile
Step 2 – Set up the new Regime to Rate Flow
Step 3 – Set up New Tax Rules
Step 4 – Update the Configuration Tax Options
Step 5 – Update Parties (Suppliers and/or Customers)
Step 6 – Test, Test, Test!
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Pre-Requisites
Setting up the Applications for E-Business Tax:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Setting Up Tax Users
Setting Profile Option Values
Setting Up Lookup Codes
Setting Up TCA Geography Hierarchy
Setting Up Legal Entity
Setting Up Operating Units
Setting Up Accounts and Accounting Information
Setting Up TCA Classifications
Setting Up Oracle Inventory
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TCA Architecture
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Step 1
Update the Tax Profile
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Step 1
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Step 2-Create A Regime
Tax Regime:
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Step 2 – Create a Regime
Assign Regime to a Party
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Step 2 – Create a Tax
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Step 2 – Create a Tax
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Step 2 – Create a Tax Status
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Step 2 – Create a Jurisdiction
OR Jurisdiction
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Step 2 – Create a Jurisdiction
WA Jurisdiction
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Step 2 – Create a Jurisdiction
ID Jurisdiction
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Step 2 – Create a Tax Rate
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Step 2 – Create a Tax Rate
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Step 2 – Create a Tax Rate
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Step 2 – Create a Tax Rate
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Step 2 – Create a Tax Rate
Idaho-6%
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Step 3 – Create a Tax Rule
Before
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Step 3 – Create a Tax Rule
Determine Place of Supply
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Step 3 – Create a Tax Rule
After
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Step 3 – Make Tax Available
Tax
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Step 3 – Regime to Rate Flow
Completed Tax Structure – Regime to Rate Flow
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Step 4 – Application Options
• Last – change the Tax Regime from STCC to Direct Rate by Enddating the old Configuration Owner and creating a new
Configuration Owner record.
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Step 4 – Application Options
Create the new Configuration Owner record.
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Step 5 – Update Party Records
• Optionally, Call up specific supplier and/or customer
records – and assign them as exempt or as a ‘no-rate’
code.
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Step 6 – TEST, TEST, TEST!
AR – Idaho Customer – 6% Tax Rate
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Step 6 – TEST, TEST, TEST!
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Step 6 – TEST, TEST, TEST!
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Step 6 – TEST, TEST, TEST!
AR-Oregon customer – 0% Tax Rate
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Step 6 – TEST, TEST, TEST!
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Step 6 – TEST, TEST, TEST!
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Step 6 – TEST, TEST, TEST!
AP – Washington Supplier – 9.5% Rate
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Step 6 – TEST, TEST, TEST!
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Step 6 – TEST, TEST, TEST!
Oregon Supplier -0% Tax Rate
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Step 6 – TEST, TEST, TEST!
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Questions???
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R12 E-Business Tax
Laurie Loeber
[email protected]
Senior Principal Consultant
Impac Services
Copyright © 2010, Impac Services. All rights reserved.