BR100Apo Purchasing Application Setup

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Title of Presentation
Oracle E-Business Tax
Presenter’s Name
Presenter’s Title
Presenter’s Name
Presenter’s Title
Objectives
The objectives of this presentation are:

• List the major new features introduced by Oracle E-
Business Tax in Release 12
• Provide a brief functional overview for each such

feature, by explaining how to setup and use them
Agenda
• Business Requirement Drivers & Compliance

• Tax Configuration Setup
• Products Related Setup
• Parties Related Setup
• Transactions Related Setup
• Defaults and Controls
• Provider Services Setup
• Advanced Setup Options
• Business Requirements Met in R12
• Tax Functionality
• Supporting Infrastructure and Services
• Q&A
Business Requirements
Drivers
ENTERPRISE-WIDE
INNOVATION
SMART GROWTH  Improve operational efficiencies
 Ability to expand to new markets  Global Shared Service Centers
(geography & industries)  Effectively measure & manage
 Squeeze out tax costs – tax planning impacts of taxes on the business
processes
 Centrally processed and managed
taxation and reporting
COMPLIANCE & OPTIMIZATION

GLOBALIZATION  Configure tax rules to support local
 Support for global operations – multiple compliance of strictly enforced
countries & taxes recording & reporting rules
 Manage taxation for cross border  Extensible tax rules engine to
transactions address local law changes for
exceptions, rates and new taxes
 Enforce rules and controls
Compliance
Many Countries, Many Requirements
Other
• USA: Sales & Use Tax
• Canada: GST, PST
• Australia: GST
• Japan: VAT
Denmark: • Brazil: ICMS, IPI, ISS…
VAT, Env Tax • Argentina: VAT, TO Tax,..
UK: Germany:
VAT, Isle of Man VAT, Busingen
Netherlands: Poland:
VAT, Env Tax VAT, …
Belgium: Austria:
VAT, Env Tax VAT, …
France: Greece:
VAT, Env Tax, … VAT, …
Portugal: Italy:
VAT, Madeira, … VAT
Spain: Switzerland:
VAT, Canary Islands VAT, Lichtenstein
Oracle E-Business Tax New Features
Tax Configuration
• Tax Definition Hierarchy
• Tax Regimes
• Content and Services Subscription
• Tax Configuration Ownership
• Taxes
• Tax Statuses
• Tax Rates
• Tax Jurisdictions
• Tax Recovery Rates
• Tax Rules
• Guided Configuration
Tax Definition Hierarchy
Description
• Tax Setup “Backbone”

• Also known as “Regimes to Rates” flow
• Mainly comprised of Regime, Tax, Status and Rates
• But also by Tax Jurisdictions and Tax Recovery Rates
• Parent-Child Relationships form a Hierarchy which is easy to
visualize, navigate and maintain
• This setup can normally be shared across all applicable
applications, Legal Entities and Operating Units
• Note: This feature is completely new
Recovery Rate:
Tax Definition Hierarchy the rate of Input
Tax that is
Tax Rate: the allowed to be
Regime to Rates Flow with UK VAT rate specified recovered or
for a tax offset against
Tax Regime: is Tax: tax is a Tax Tax Status: the taxable status in Output Tax.
the set of tax distinct charge Jurisdiction: nature of a product / effect for a
rules and setup imposed through a geographical service in the context of period of
that determines a fiscal or tax area where a a transaction for a tax time; the tax
the treatment of authority. Every tax is levied by type. It is similar to the rate can be
one or more tax in eBTax is a specific tax concept of tax type expressed as Operating
taxes defined under a authority or a definition used within a percentage Unit Tax
administered by tax regime (e.g. specific tax rate Oracle Payables and or as a value
a tax authority. TVA for France) per unit
Accounts
applies. Receivables preceding
Release 12. quantity.
Tax Tax Tax Tax Recovery

Tax
Regime Jurisdiction Status Rate Rate
UK VAT UK VAT UK VAT Standard 17.5% 100%
Reduced 5.0% 100%
Zero Rated 00%

Exempt 00%
Flow Optional Flow
Note: The above data examples were introduced just to illustrate the business flow and do not represent the complete tax setup for the country
Regimes to Rates Grid Page
Explicit
Context of
Tax Regime,
Tax, Tax
Status is
provided for
Tax Rate
Codes
Navigate to
appropriate
level and
define
higher level
defaults
and
controls
Tax Configuration

• Tax Regimes
• Taxes
• Tax Statuses
• Tax Rates
• Tax Rules
Tax Regimes
A higher level
regime can
be defined I.e.
EU VAT
A Tax Regime comprised of
is usually various
defined for a country VAT
country regimes
Tax Regimes (cont’d)
Instead of
replicating
choices for
different
OUs, define
which
regimes Define Tax
need to Regime level
support defaults that
recovery / are common
Exemptions / across all
Exceptions / associated
Overrides taxes. They
can be
overridden at
tax level.
Tax Configuration
• Tax Regimes
• Taxes
• Tax Statuses
• Tax Rates
• Tax Rules
Content and Services Subscription
Description
• Regime Configuration Options allow the user to define for first
party legal entities or Operating Unit:
• Whether to centralize or decentralize the maintenance of tax
content
• Whether to subscribe to Oracle E-Business Tax services or to
3rd party tax vendors, per tax regime
• Example: UK VAT calculated by Oracle E-Business Tax and US
Sales tax calculated by Vertex.
Tax Configuration
• Tax Regimes
• Taxes
• Tax Statuses
• Tax Rates
• Tax Rules
Tax Configuration Ownership
Description
• Defined at Tax Regime level

• Defined for Legal Entities or Operating Units
• Configurations Options are:
• Common
• Common with Party Overrides and
• Party Specific
• Common Configuration with Party Overrides is allowed for Tax and
Rules but not for Product Exceptions
Configuration Options
In Tax
Regimes flow,
Configuration
Options can
be defined for
a Legal Entity Configuration
or Operating for Product
Unit Exceptions
can be defined
as Common or
Party Specific
Configuration
for Taxes and
Rules can be
defined as
Common,
Common w/
Party
Overrides and
Party Specific
Selecting the Configuration Owner
Based on the
Configuration Options
for the Regime, the
user must select the
Configuration Owner,
which can be ‘Global’ in
case the configuration
option is ‘Common’ or a
party name, when the
option is ‘Party
Specific’
Tax Configuration
• Tax Regimes
• Taxes
• Tax Statuses
• Tax Rates
• Tax Rules
Tax Search / Creation
Depending on
option
assigned to the
Config. Owner,
a tax can be
created as a
copy (party
override) of
another
existing tax
belonging to
the Global
Config. Owner
Tax
A Tax is
defined by a
Configuration
The Geography
Owner.
Type
associated to a
tax can be
legislative
elements (I.e.
state, county,
city) or specific
tax zones
defined by the
user
Tax (cont’d)
Define
granular
controls at
tax level,
instead of
controlling
the Instead of
behavior at repeating
highest taxes, define
level (OUs) multiple
or too low jurisdictions
levels like for the same
tax rate tax. e.g. US
codes. State Sales
They can Tax can have
be several state
overridden level
at lower jurisdictions
levels.
Tax Configuration
• Tax Regimes
• Taxes
• Tax Statuses
• Tax Rates
• Tax Rules
Tax Status
In the
absence of a
Tax Status
determination
rule, the
Tax Status default Tax
also have Status will be
its own picked up.
controls Only one tax
status can be
defined as
the default for
a given tax.
Tax Configuration
• Tax Regimes
• Taxes
• Tax Statuses
• Tax Rates
• Tax Rules
Tax Rates
Tax Rate
Codes are
defined in Define date
the context effective
of a period and/or
Regime, Tax navigate to
and Tax details for
Status. It Account
can information /
optionally lowest level
be defined controls /
for a tax defaults
jurisdiction
as well
Tax Rate Details
Tax Rate
Reporting,
Recovery
and Offeset
Rate details
can all be
defined at
this level
Several
controls
A Tax
defined at tax
Status can
rate level
have one
have the
tax rate
lowest
defined as
granular level
the default
but the
tax rate.
highest
This will be
precedence
used in
absence of
a rate rule
Tax Configuration
• Tax Regimes
• Taxes
• Tax Statuses
• Tax Rates
• Tax Rules
Tax Jurisdictions
Description
• Geography information, including geo-political geographies and
user-defined geographies, is defined in TCA’s Geography model
• Tax Zones are defined in TCA’s model but via Oracle E-Business
Tax menu option
• Jurisdictions are defined for a given geography, regime, tax and tax
authority (the latter is optional)
• Tax jurisdictions can also be defined for areas inside city limits,
which are usually indicated in the address
• Data upload routines used to upload US Sales Tax data from Vertex
and Taxware, will populate data into both Geography Hierarchy and
Tax Jurisdiction models
Tax Jurisdictions
Setup
Tax
Jurisdictions
are created for
a geography
type
Multiple
jurisdictions
can be define
Jurisdiction for a tax, as
rates having well as a
different default one
effective
periods can be
defined in the
same flow
Tax Configuration
• Tax Regimes
• Taxes
• Tax Statuses
• Tax Rates
• Tax Rules
Tax Recovery Rates
Setup
Multiple
recovery rates
can be defined
for a tax. In
this example,
Canadian GST
tax has two
recovery rates.
Tax Configuration
• Tax Regimes
• Taxes
• Tax Statuses
• Tax Rates
• Tax Rules
Tax Rules
Introduction
• Powerful and Flexible mechanism to meet tax legislation
requirements
• Tax rules are date effective
• Guided vs. Expert configuration flows are offered
• Rules are defined by Rule Types:
• Direct Tax Rate Determination
• Determine Place of Supply
• Determine Tax Applicability
• Determine Tax Status
• Determine Tax Rate
• Determine Taxable Basis
• Calculate Tax Amount
• Determine Recovery Rate
Tax Configuration
• Tax Regimes
• Taxes
• Tax Statuses
• Tax Rates
• Tax Rules
Guided Configuration
Introduction
• Step by step guidance to setup tax rules in a very intuitive manner

• Makes it easy to select default values for most tax rule types
• Generates all necessary setup behind the scenes
Tax Rule Types per Regime and Tax
Rules can be
defined via
guided (step
by step) or
expert (faster)
flows
Rules
belonging to Most rule
multiple pre- types allow
defined rule definition of
types can be default values,
defined for a which get
given tax selected in
case there are
no rules
defined for the
rule type
Tax Rule Types per Regime and Tax (cont’d)
The rules
defined for all
rule types can
be seen in a
hierarchical
fashion,
turning
maintenance
easier and
faster
Tax Rules Setup
A rule is
usually There are 5
generic, but it general guided
can be defined steps to define a
as being tax rule
specific to a
transaction or
geography as
well.
Tax Rules Setup (cont’d)
User selects
the various
determining
factors and
values that will
form the rule
conditions
User then
selects the
rule result for
the rule type in
question and
all previously
selected rule
conditions
User then
defines the
order in which
this rule will
be evaluated
for the rule
type in
question
Parties
• Party Tax Profile
• Tax Registrations
• Tax Exemptions
Party Tax Profile
Description
• Centralized flow to maintain tax related information that can be
associated to 1st and 3rd parties and party sites
• Examples of party tax attributes are:
• Generic controls to identify whether the party is taxable, self-
assesses taxes and allows offset taxes or not
• Default controls such as rounding level and rounding rule
• Tax classification (compatible with former tax code)
• The Party Tax Profile flow is also the entry point to other flows such
as Tax Registrations, Classifications, Exemptions, Tax Reporting
Codes and Account Tax Details
Party Tax Profile Flow
Tax
Legal Entity Registrations
1st Party
Establishment Party
Exemptions
(HQ and Secondary) Tax Profile
3rd Party &

Party Sites Party Fiscal
Party Classifications
Search
External Components
eBTax Components
Party Tax Profile
Setup
Party Tax
Profile is the
Main tab entry point
contains to other
generic tax party related
profile flows
information
Parties
• Tax Exemptions
Tax Registrations
Description
• Tax registrations can be defined for 1st and 3rd parties. It is a very
important information since it can be used in tax rules and tax
reporting.
• Tax registrations can de defined at regime, tax or tax jurisdictions
levels.
• Tax registration numbers are usually validated to ensure accuracy
and/or comply with legal requirements.
• Note: This feature has been enhanced with new business flow and
functionality, but existed in 11i
Tax Registrations
Setup
A party can have
multiple tax
registrations
More complete
registration information
can now be defined
without replicating
parties / accounts / sites
Parties
• Tax Exemptions
Tax Exemptions
Description
• The tax exemption certificate is a document obtained from a tax
authority which certifies that a party, party site, or product is either
partially or fully exempt from a tax
• In Oracle E-Business Tax, a tax exemption can be applied to a
Party and a tax regime. It can optionally apply to a tax, tax
jurisdiction, status and tax rate
• Exemptions flow can be accessed via the Party Tax Profile flow
• Exemption Rate Type attribute has been introduced in R12
• Special Rate
• Discount/Surcharge
• Note: This feature has been enhanced with new business flow
and functionality, but existed in 11i
Tax Exemptions
Setup
A tax
Exemption
usually has a
certificate
number,
exemption
reason, and
status. It is
created in the Exemptions are
context of usually a
Party/Site. discount or
surcharge on
the tax rate, but
a special rate is
also possible.
Default and Controls
• Country Defaults
• Configuration Owner Tax Options
• Application Tax Options
• GL Tax Options
Country Defaults
Introduction
• Country Defaults are controls used to provide default values for fiscal
classifications, party tax profiles and tax configuration for a particular
country
• Default values are very helpful to expedite data entry, specially data
entry of tax attributes at transaction line level when manually entering
or importing invoices
Country Defaults
Setup
Several
defaults and
controls,
including
default
regime and
tax, and
some default
fiscal
classfication
s, can be
defined for
the country
using the
Country
Defaults
• GL Tax Options
Configuration Owner Tax Options
Introduction
• Configuration Owner Tax Options will be the home of several tax
defaults and controls defined at former System Options levels
• The data can be defined for the combination of:
• Configuration Owner (e.g. OU, Legal Entity)
• Application Name (e.g. Receivables, Payables)
• Event Class (Invoice, Credit Memo, etc.)
Setup
Several defaults
and controls such
as rounding
precedence, allow
exemptions flag,
offset, overrides,
tax tolerance, etc.
can be defined for
the combination of
Configuration
Owner, Application
and event class
• GL Tax Options
Application Tax Options
Description
• Application Tax Options is primarily used for backward compatibility
of the former Tax Defaulting Hierarchy
• Parties, Items, System Options and Transaction Lines will have a
Tax Classification Code associated to them, as opposed to the
former 11i Tax Code
• The order of precedence from where to default the Tax
Classification can be defined in Application Tax Options
Setup
are defined for the
combination of
Operating Unit and
Application Name
The Tax Classification

can be defaulted from
The defaulting order can be
several pre-defined
disabled at any time in case,
places such as parties,
specially when replaced by
items, system options,
more advanced rules
etc. up to seven levels
of defaulting
• GL Tax Options
• GL Tax Options will be accessed only via Oracle E-Business Tax menu
• Basically the same functionality has been preserved, but the will have
to enter additional information such as Tax Regime, Tax and Tax
Status
• Note: This feature has been enhanced with new information and menu
entry, but existed in 11i
GL Tax Options
Setup
New data to
better identify
the tax rates
are now
required to be
entered
Advanced Setup Options
• Tax Determining Factor Sets

• Tax Condition Sets
• Tax Formulas
• Tax Zone Types
Tax Determining Factor Sets
Description
• Group of Tax Determining Factors

• Defined for a Tax Regime
• Classified into Determining Factor Classes
• Used by Tax Condition Sets
Tax Determining Factor Sets
Setup
Determining
Factor Sets
are created to
group various,
and usually
correlated, tax
determining
factors which
will be used in
tax condition
sets when
creating tax
rules

• Tax Formulas
• Tax Zone Types
Tax Condition Sets
Introduction
• Group of Tax Conditions

• Defined for a Tax Determining Factor Set
• Several Tax Condition Sets can be defined for the same Tax
Determining Factor Set
• Used in Tax Rules
Tax Condition Sets
Setup
Tax Condition
Sets are
defined to
group together
a set of desired
conditions for a
given Tax
Determining
Factor Set.
Several Tax
Condition Sets
can be created
for the same
Tax
Determining
Set

• Tax Formulas
• Tax Zone Types
Tax Formulas
Description
• A tax formula is a special calculation not covered by the standard
calculations available in the system
• Example of tax formulas are:
• To Calculate Taxable Basis
• To Calculate Complex Compounding Rules
• To Calculate Tax Amounts
• Note: This feature is completely new, but in 11i user could define
open PL/SQL formulas which will no longer be supported in R12
Tax Formulas
Setup Tax formulas for
different formula types
can be defined for a tax
regime and tax
Certain rule types

such as Taxable Basis
and Tax Amount are
based on tax formulas

• Tax Formulas
• Tax Zone Types
Tax Zone Types
Description
• Defined to identify and groups correlated tax zones
• Example: California Sales Tax Zone Type will be comprised of a
handful of Californian cities which actually have city level sales
tax rates
Tax Zone Types
Setup
In case tax
jurisdictions
are needed
for specific
tax zones,
the user
must first
define the
tax zone
type
The user then
specifies the
types of
geography
that this tax
zone type will
allow when
creating tax
zones
Tax Zones
Setup
Tax Zones are
created for Tax
Zone Types
The geographies that

form the tax zone are
then specified, based
on the geography types
defined for the Tax
Zone Type
Business Requirements Met in R12
• Deferred Tax in AP
• Enhanced Handling of Tax on Freight
• Enhanced Exemptions and Exceptions
• Multiple Inclusive, Compounding
• Quantity Based Rates in Procurement
Deferred Tax in AP
• A deferred tax is when the accrual (and therefore the settlement
and/or reporting) of taxes due or recoverable is delayed due to
special tax rules either enforced by the Tax Authority, or allowed
with the agreement of the Tax Authority.
• Oracle E-Business Tax allows you to account for recoverable
taxes at the time and to the extent of payment in Payables,
similar to behavior in Receivables in 11i
Enhanced Handling of Tax on Freight
• Enhances handling of tax on Freight, with the ability to define
different rules for freight
Enhanced Exemptions and Exceptions
• Ability to define exemptions specific to a regime, tax or
jurisdiction for a party
• Ability to define exceptions specific to a regime, tax or jurisdiction
by product fiscal classifications
Multiple Inclusive, Compounding
• Allows you to define multiple inclusive taxes as well as
supporting compounding taxes and surcharges (i.e., tax on tax)
Quantity Based Rates in Procurement
• Allow the use of Quantity based Tax Rates to be unit based, e.g.,
$0.25 per US Gallon
Tax Functionality
• Tax Compounding
• Tax Inclusiveness
• Tax Recovery
• Tax Rounding
• Offset Taxes
• Tax Overrides
Tax Compounding
Description
• A compounded tax is a tax that is dependent on (the tax value

pertaining to) one or more taxes
• Oracle E-Business Tax allows Regime Compounding and Tax
Compounding. The order of precedence for calculation can be
defined at both levels
Tax Compounding
Regime Level Setup
Regimes can be compounded

of other regimes. In this case
Canadian
Canadian GST/HST
GST has the
regime
highest
has
precedence
the highest(#1)
precedence
over Canadian
(#1)
over Canadian
PST PST (#2)
Tax Compounding
Tax Level Setup
Compounding precedence can

also be defined at tax level,
where taxes will compound the
taxable basis of other taxes, all
within the same tax regime
Tax Inclusiveness
Description
• An inclusive tax is a tax that is included in the sales or cost price of
a product
• Setup can be define at Tax Regimes, Taxes and Tax Rates levels,
as follows:
• Allow Tax Inclusion
• Allow Override and entry of Inclusive Tax Lines
• Tax level definition can also indicate whether override and entry of
inclusive tax lines is allowed or not
• Definitions at Regime and Tax levels are used for defaulting
purposes only
Tax Inclusiveness
Tax Level Setup
Different types of
tax inclusion can
be defined at tax
level. Also
whether inclusive
tax lines can be
manually entered
or overridden
Tax Inclusiveness
Tax Rate Level Setup
Different types of
tax inclusion can
be defined at
Regime, Tax and
Rates levels.
Also whether
inclusive tax
lines can be
manually entered
or overridden
Tax Recovery
Description
• Tax recovery is the partial or full reclaim of taxes paid on the purchase or
movement of a product
• There is a flow to define Recovery Rates
• A tax can have a primary and a secondary Recovery Type assigned to it
• A tax can also have a primary and a secondary Default Recovery Rate Code
assigned to it
• Determine Recovery Rules can also be defined
• There are Recovery Controls at Regimes, Tax, Status and Rates levels
• Default Recovery Settlement can be defined at Tax, Status and Rates levels
• Definitions at Regime and Tax levels are defaults only but do control whether
recovery sections appear at lower levels
• Note: This feature has been enhanced with new business flow and functionality,
but existed in 11i
Tax Recovery
Tax Level Setup
There are
several
recovery
controls at tax
level. User can
define primary
and secondary
recovery types
and recovery
rate codes. In
addition, tax
level control
can indicate
whether
primary and
secondary
recovery rate
determination
rules are
allowed or not
Tax Rounding
Description
• Rounding setup such as rounding rule, rounding level specific to a
party can be defined at Party Tax Profile level
• Rounding Rule and Allow Tax Rounding Override setup is also
available at Regime and Tax levels
• Configuration Owner Tax Options has 4 levels of rounding
precedence to indicate the order in which party (ship from / ship to)
level rounding options need to be evaluated
• The Default Rounding Level can be also defined at Configuration
Owner Tax Option level
Tax Rounding
Configuration Owner Tax Options Setup
Four levels of
rounding
precedence
and the
Default
Rounding
Level can be
defined at
this level
Tax Rounding
Party Tax Profile Setup
Rounding
level and
rounding rule
setup specific
to a 3rd party
can be
defined in
Party Tax
Profile
Offset Taxes
Description
• Offset tax is a negative-rate tax used to fully or partially reduce another tax
• The tax rate for the offset tax is usually a negative tax rate to “offset” the
regular tax code
• Both regular tax and offset tax must be created under the same tax regime,
so they both can become applicable and offset each other
• There is a flag which sets a tax as a Offset tax
• A flag to Allow Offset Tax Calculation must be set at Configuration Owner
Tax Options level
• Offset is a backward compatible solution, which can be used as an
alternative to a more complete solution called Reverse Charge/Self-
Assessment
Offset Taxes
Setup
Only valid
Offset tax functions
is definedare
at
displayed at each
both Tax and level
of the hierarchy
Configuration Owner
Tax Options levels
Tax Overrides
Description
• Allow Override of Customer Exemptions, Allow Override of Tax
Codes and Allow Override of Inclusive Tax Lines are all defined in
• Allow Tax Rate Override is defined in Tax Status
• Allow Tax Rounding Override is defined in Party Tax Profile
Tax Overrides
Configuration Owner Tax Options Setup
Override
controls
specific to a
configuration
owner and
application
will be
migrated to
this level
Tax Overrides
Setup at Tax and Status Levels
Allow Tax Rate
Override is defined at
Status level
Several types of tax

overrides can be defined
at tax level, such as
override for inclusive tax
lines, tax rounding and
for calculated tax lines
Supporting Infrastructure and Services
• Tax Repository
• Tax Reporting
• Tax Simulator
Tax Repository
• Single source of transactional tax information (tax lines)

• Support for tax reporting, tax accounting and tax reconciliation
processes
• Underlying infrastructure for users to view and/or modify (override)
tax lines
• Note: This feature in completely new
Tax Repository
Tax Lines Page An invoice line can have
one or more tax lines
associated to it, where
detailed information
related to calculated
taxes is captured
• Tax Repository
• Tax Reporting
• Tax Simulator
Tax Reporting
• Most information for all tax reports come from the newly introduced
tax repository, which guarantees data consistency and reporting
performance
• The new tax reporting architecture is much more standardized and
simplified compared to previous releases
• Tax reporting templates, all based on the XML Publisher technology,
can be easily customized by the user
• The vast majority of all former tax reports will be preserved and
converted into a corresponding XML Publisher template
• Note: This feature has been enhanced with new architecture and
• Tax Repository
• Tax Reporting
• Tax Simulator
Tax Simulator
• Simulator is a powerful user interface too that can be used by Support,
Consultants, Customers, etc. to simulate Tax Calculation based on
“what-if” scenarios.
• It gives flexibility to test new and/or changed tax rules
• Tax Simulator helps on audit trail with respect to which Tax Rules were
satisfied in calculating a particular Tax
• Tax Simulator can act as a light-weight transaction for entering Purchase
Orders, Invoices, Invoices matched against PO, etc.. that is integrated
with Tax Lines User Interface
• It is a fast way to enter transactions with fewer validations to perform
what-if scenarios on tax calculation
• Note: Tax Simulator emulates transactions, but does not trigger any real
transactions
Tax Simulator
Page Flow
Simulator has
the relevant
fields
available in a
transaction
but with
much less
validations
Tax Simulator
Page Flow
Once the
transaction
lines are
entered and
taxes get
calculated,
they can be
seen in the
tax lines
summary
page for each
transaction
line
Tax Simulator
Page Flow
More detailed
information
can be seen
for each tax
line in the
Detail Tax
Line window
Tax Simulator
Page Flow
All the rule
types and
rules that
were invoked
to generate
each tax line
can also be
seen in the
Rules window
For each
process, the
corresponding
conditions can
also be seen
Key Benefits
• Complete global tax solution for the E-Business Suite
• Easy to use and configure. Provides guided and expert configuration options
• Easy to integrate with 3rd party tax vendors. Provides infrastructure to upload
tax content
• Provides infrastructure to define and share or to define and individually own
tax content
• Provides infrastructure to simulate tax setup, transactions lines and respective
tax calculation results
• Enables users to create and maintain a variety of tax rules and determining
factors, which can handle from very simple to very complex tax requirements
• Captures all relevant tax information in the Tax Repository
• Offers powerful and flexible tax reporting solution where users can use and/or
modify the pre-defined tax reporting templates
General Recommendations
EB Tax
• Enhance debugging mechanism, so that Support/customer can understand
what path the Tax engine is taking when it attempts to determine the tax for
a transaction.
• Build consolidated ZX patches on a cycle that is shorter than the RUP cycle
• Simplify the process for requesting one-offs, currently patches are password
protected and customers end up logging SRs just to request for the
password.
• Explore the possibility of shipping R12 with seeded set-ups for the most
common types of tax so that customers can use it as a template to assist
them in creating the correct set-up. If this is not feasible, then provide a
cookbook on setting-up these common taxes. This would enumerate all the
things required in sequential order, and detail how to navigate to that form.
• For AP Invoice validation, request to expose EBTax errors in the concurrent
log file.
• Localization specific setup documents. Need to get the setup scripts for
localization or country specific tax calculation.
General Recommendations
EB Tax {continued}
• Explore the possibility of providing a tool that can export customer’s ETax set-up. This
can then be uploaded to a Support instance to aid in troubleshooting an issue.
• Documentation needs to provide additional data for setup. Example setup for tax,
many times the LOV does not list values due to a missed or unused setup from a
different application. All documentation should provide the source for each LOV
needed especially if source of LOV is from another module/product.
• For major product setups (i.e. EBTax, Legal Entity). Doc should include basic
template setups or be fully setup for the customer to use. For example tax product
could have a test regime with US tax setup ready to copy or use right out of the box.
• Review existing documentation to ensure that is it concise. In set-up examples ensure
that steps are listed in the order they should be entered, because data has
dependencies.
• Create a chapter in the documentation that clearly describes differences in Tax
between 11i and R12. This should also include explanations of where in the R12 data
model, 11i data ended up in.
• Considering EBTax integration with Vertex and Taxware, there should be
documentation on what we need to check on the Oracle side, re. Correct set-up of
Taxware / Vertex.
• EBTax needs to have a dedicated support team so that issues do not get transferred
across teams many times before solution is provided.
Implementation Considerations
Enhanced Tax
• Enable Tax for a ledger using the Ledger Options page in
Accounting Setup Manager
Enhanced Tax Implementation
Considerations
• The operating unit assigned to the MO: Operating Unit profile
option controls the Tax Codes list of values
Looks at
MO: Operating Unit
profile option

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The following is intended to outline our general

The objectives of this presentation are:

• Provide a brief functional overview for each such

• Business Requirement Drivers & Compliance

COMPLIANCE & OPTIMIZATION

• Tax Setup “Backbone”

Tax Tax Tax Tax Recovery

UK VAT UK VAT UK VAT Standard 17.5% 100%

Reduced 5.0% 100%

Zero Rated 00%

• Tax Definition Hierarchy

• Defined at Tax Regime level

• Step by step guidance to setup tax rules in a very intuitive manner

3rd Party &

The Tax Classification

• Tax Determining Factor Sets

• Group of Tax Determining Factors

• Tax Determining Factor Sets

• Group of Tax Conditions

• Tax Determining Factor Sets

Certain rule types

• Tax Determining Factor Sets

The geographies that

• A compounded tax is a tax that is dependent on (the tax value

Regimes can be compounded

Compounding precedence can

Several types of tax

• Single source of transactional tax information (tax lines)

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