EDU3ED6Y.ppt

Copyright © 2007, Oracle. All rights reserved.
Oracle E-Business Tax
Overview

Objectives
After completing this module, you should be able to:
• Introduce the Oracle E-Business Tax module
• Explain the E-Business Tax architecture
• Examine the E-Business Tax components
• Discuss the E-Business Tax process flow

Agenda
• Oracle E-Business Tax introduction
• Architecture
• Components
• Process Flow

E-Business Tax –
New Product
• Global and consistent compliance repository
• Encapsulates fiscal and tax rules in a single point
solution for tax events
• Easy to integrate, extend, and implement

E-Business Tax –
Benefits
• Migration from Release 11i
• Minimize the need for detailed regional tax knowledge
• Simplified setup
• Minimize tax compliance risk
• Tax data modeling tool
• Automatic tax handling

E-Business Tax Solutions for Business Needs
Need for Automation
• Seeding of basic tax content setup for some
countries
• Service integration and data upload from
Vertex and Taxware in the United States
• Integrity checks when defining tax content
setup
Constant Changes in Tax
Laws and Regulations
• Most of tax content setup is date effective
• Tax Rules flow makes it easy to change
existing rules and/or create new ones
• Tax Simulator allows simulation of tax setup,
rules, transactions entry and respective tax
rules results
Business Need Solution
Need for Local Compliance
• Tax Registrations, Tax Reporting Codes
• Tax Lines capture all relevant information used
to determine applicable taxes
• Tax Reporting templates can be modified and
extended

Information Fragmentation
• Tax Lines capture all relevant information used
to determine applicable taxes
• Oracle E-Business Tax fully integrates and
makes use of common infrastructure available
within E-Business Suite such as:
• TCA’s Geography Model
• TCA’s Party Classification Model
• Legal Entity Model
• Inventory Item Categorization Model
• Accounting Event Classes
Deferred Tax in Payables
• Tax services for payments transactions can be
enabled at Configuration Owner Tax Options
flow
Business Need Solution
Tax on Freight • Tax services for applicable transactions with
freight can be enabled at Configuration Owner
Tax options flow

Sales and Use Tax
in Procurement
• Complete Sales and Use Tax setup hierarchy
can be defined in Regime to Rates flow
• Tax services for applicable transactions can
be enabled at Configuration Owner Tax
Options flow
• Tax rules can apply to generic or specific
transactions
• Tax Jurisdictions can be defined for very
precise geographical areas where taxes are
applicable
Duty Tax Handling
Business Needs Solution
Tax on Inter-company
Movements
• Tax setup allows creation of Quantity Based
tax rates
Cash and Accrual Basis
Reporting for Tax
 Tax Lines will capture necessary information
 Tax Reporting allows specific selection
• Tax services for applicable transactions can
be enabled at Configuration Owner Tax
options flow

Multiple Tax Registrations
• New Tax Registrations flow allows multiple tax
registrations for the same party and/or party
site
Tax Reporting Codes
Business Needs Solution
• Any number of Tax Reporting Types and
Codes can be defined and associated to
various entities within Oracle E-Business Tax

Integration Within Oracle E-Business Suite
• Purchasing
• iProcurement
• Receivables
• Consigned Inventory
• Payables
• Order Capture
• Order Management
• Trade Management
• Service Contracts
• General Ledger

Meta
Data
Meta Data
Repository
Taxonomy
& Rules
Single Data Model
Tax
Definition
Tax
Authority
Jurisdiction Status
Tax
Regime Rates
Configuration
Party Place Process
Product
Rule
Engine
Tax Regimes
Taxes
Place of
Supply
Rates
Registration
Recovery
Taxable Basis
Services Calculate
Taxes
Determine
Recovery …..
Repository, Reports, KPIs, Dashboards ….
Tax
Management
1
2
3
4
5
E-Business Tax Architecture

E-Business Tax Home Page

E-Business Tax Key Concepts –
Tax Definition
Tax
Regime
Tax
Tax
Status
Tax
Rate
Tax
Jurisdiction
Recovery
Rate
OU Tax
Accounts
Tax
Authority

Key Concepts: Tax Authority
Tax
Authority
Tax Regime Tax
Tax
Jurisdiction
Secretaria da Receita
Federal (Brazil)
Canadian Customs and
Revenue Agency
(Canada)
HM Customs and
Excise (U.K.)
California State Board
of Equalization
Tax Authority: A government entity that regulates tax
law, administers, and/or audits one or more taxes.

Key Concepts: Tax Regime
Tax
Authority
Tax Regime Tax
Tax
Jurisdiction
Tax Regime: The set of tax rules that determine the
treatment of one or more taxes administered by a tax
authority.
RICMS - Regulamento do
ICMS
Federal (Brazil)
Canadian Goods and
Services Tax
Revenue Agency
(Canada)
UK VAT
HM Customs and
Excise (U.K.)
California Sales Tax
of Equalization

Key Concepts: Tax
Tax
Authority
Tax Regime Tax
Tax
Jurisdiction
Tax: A classification of a charge imposed by a
government through a fiscal or tax authority.
CMS
ICMS
Federal (Brazil)
GST
Canadian Goods and
Services Tax
Revenue Agency
(Canada)
UK VAT
UK VAT
HM Customs and
Excise (U.K.)
State Sales Tax
of Equalization

Key Concepts: Tax Jurisdiction
Tax
Authority
Tax Regime Tax
Tax
Jurisdiction
Tax Jurisdiction: A geographic area where a tax is
levied by a specific tax authority.
São Paulo
CMS
ICMS
Federal (Brazil)
Ontario
GST
Canadian Goods and
Services Tax
Revenue Agency
(Canada)
UK
UK VAT
UK VAT
HM Customs and
Excise (U.K.)
California (State)
State Sales Tax
of Equalization

Configuration Components
Configuration Components:
• Party Tax Profiles
• Customer Tax Exemptions
• Product Tax Exceptions
• Tax Registrations
• Configuration Owners
• Configuration Options
• Service Providers
• Fiscal Classifications
• Country Default Controls

Tax Rules Engine
Tax Rules Engine Components
• Tax Rules
• Tax Determination Process
• Tax Rule Defaults
• Tax Determining Factors
• Determining Factor Sets
• Tax Condition Sets

Tax Determination Management
• Place of Supply
• Tax Applicability
• Tax Registration
• Tax Status
• Tax Rate
• Taxable Basis
• Tax Calculation
• Recovery Rate

Single Interface for Transactions
Transparent Integration with Tax Partner Services
Tax
Transactions
Taxes &
Rules
Determine
Regimes
Taxable
Basis
Calculate
Tax
Amount
Tax Status
& Rate
Applicable
Taxes
Parties
Places
Products
Processes
Payables
Receivables
Purchasing
Transactions
Sales
Orders
E-Business Tax Processing

Receivables Transaction Example
Tax
Regimes
are
identified
based on
the
countries
of the
parties
involved
A default value or a
rule indicates the
Place of Supply

A default party type
value or a rule
determines from
which party to
evaluate tax
registration status
Party classification
can be used as a tax
determining factor in
any rule type

Product Classification
can be used as a tax
determining factor in
any rule type
(Qty * Unit Price) is
the default seeded
Taxable Basis
formula, but other
formulas can be
defined

(Tax Rate *
Taxable Basis) is
the default
seeded Tax
Amount formula,
but other
formulas can also
be defined

Summary
In this module, you should have learned how to:
• Introduce the Oracle E-Business Tax module
• Explain the E-Business Tax architecture
• Examine the E-Business Tax components
• Discuss the E-Business Tax process flow

EDU3ED6Y.ppt

Recommended

Recommended

More Related Content

Similar to EDU3ED6Y.ppt

Similar to EDU3ED6Y.ppt (20)

Recently uploaded

Recently uploaded (20)

EDU3ED6Y.ppt