Oracle R12 E-Business Tax (EBTax): Considering an Upgrade or New Implementation?

Oracle R12 E-Business Tax (EBTax): Considering an Upgrade or New Implementation? Contents 1 Considering an Upgrade or New Implementation? 2 Option 1: Upgraded E-Business Tax 3 Option 2: New Implementation of E-Business Tax  4 Considerations for Each Approach 5 New Features and Benefits of E-Business Tax 5.1 Tax Repository 5.2  Guided Configuration 5.3 Self Assessment/Reverse Charge 5.4  Tax rules 5.5  Fiscal Classification 5.6 Tax Simulator 5.7 Tax Jurisdiction 5.8 Content and Services Subscriptions 5.9 Events and Configuration Owner Options 5.10 Multiple Tax Registrations New features Several new features are available through E-Business Tax that improve functionality including tax repository guided configuration, tax rules, and fiscal classification. Considering an Upgrade or New Implementation? There are two options for tax configuration when upgrading from Oracle 11i to Oracle R12: 1. Use upgraded E-Business Tax 2. Configure new implementation of E-Business Tax Option 1: Upgraded E-Business Tax Choosing to use the Oracle E-Business Tax upgrade configuration offers Oracle customers the ability to continue to use the current business tax calculation design and configuration methodology post upgrade. The concept of using tax codes assigned to customers, suppliers, or inventory items will remain the same post upgrade. Previously, tax configurations were housed in the Oracle Receivables or Oracle Payables modules. After upgrading to R12, all tax configurations are migrated to Oracle E-Business Tax in a central location. From an implementation perspective, this option involves the following:  Assess impact to existing customizations and reporting     Review master data and Oracle E-Business Tax configuration post upgrade     Identify modifications or new setups in addition to the upgrade configuration Example of the Oracle E-Business Tax setup that results as a part of the R12 upgrade from 11i: Option 2: New Implementation of E-Business Tax  Configuring Oracle R12 E-Business Tax as a fresh installation offers the ability to utilize new functionality introduced as a part of R12. Where the automation of tax calculation was limited in prior Oracle versions, R12 offers the ability tocreate multiple tax rules and reduces the amount of ongoing setups required to calculate taxes. From an implementation perspective, this option involves the following:     Gap analysis of E-Business Tax functionality to current and future business requirements  Solution design and E-Business Tax module configuration  Assess impact to existing customizations and reporting Considerations for Each Approach The decision to upgrade should be based upon the following key factors:  Project implementation timeline  Business and system needs to scale with tax law changes or expansions into new regions covered by different tax laws  Need for automatic tax calculation Option 1: Upgrade E- Business Tax Configuration Option 2: Reconfigure E- Business Tax Pros  Faster implementationtime  Minimal work tomaintain current taxcalculation requirements  Fewer changes to enduser and low impact fortraining  Automation of tax decisionsthrough creation of tax rules  Flexibility to createconditional tax rules basedupon party product, process, or place Cons  Restrictions on creatingnew tax rules and modifyingexisting tax rules  Restrictions for taxpartner integrations suchas Vertex or Taxware  Full implementation ofOracle TCA geography hierarchy and E-Business Tax  Longer implementation timeframe  Required data clean up onmaster data New Features and Benefits of E-Business Tax E-Business Tax is a single-point solution for managing your transaction-based tax requirements. It delivers tax content to all EBS Business flow through one application interface. It reduces the tax configuration time and resolves complex tosimple adjustments needed from changes in local jurisdiction, legislation, rates, and exceptions for products and customers. This ensures a uniform tax setup across applications, with a centrally managed system of automated tax services andcontrol over manual intervention and update. New features of E-Business Tax include: Tax Repository     Is part of the single source of transactional tax information (i.e. Tax lines) for all calculated E-Business Tax  Allows for calculated taxes, parties involved to be stored in location  Allows for tax reporting, tax accounting, and tax reconciliation  Is the underlying infrastructure for users to see and/or modify (override) tax lines  Guided Configuration     Provides a Home Page to guide the user through a step by step process of configuration     Home Page allows access to other models to gain pre and post requisites configuration required for tax configurations Self Assessment/Reverse Charge  Allows for transactions to capture Use Tax in the US or Reverse Charges in Europe     Adds a tax line that will not be a part of the Payable transaction total, but will be booked in if a Use tax or Reverse Charge should be assessed on invoice   that originally did not have taxes from a supplier  Tax rules  Allow for complex tax legislations to be met  Can be derived by date effectiveness  Can produce guided or expert configuration flows     Include several type of rules such as Place of Supply, Tax Calculation, and Tax applicability  Fiscal Classification Consists of Party, Product, Process, or Place (the 4 Ps)     Party – E-Business Tax allows for link in Fiscal classification types for existing parties categories in TCA  Product – Allows for classification of existing inventory categories or non-inventory item classification codes  In addition, defining specific intended usage     Transaction (Process) – Allows certain Transaction Business Categories to hold generic classification where tax can be very specific in its requirements     Place – This parameter is used in identifying the above focus on the shipper, receiver, from the order to cash/procure to pay process Tax Simulator E-Business Tax provides a way to test new rules out without impacting your production instance (Live Instance). Tax Jurisdiction This allows for the defining of specific geographies for tax and taxing authorities. Content and Services Subscriptions This permits third-party software and services to connect with E- Business Tax. Events and Configuration Owner Options E-Business Tax helps control tax configure information, such as rounding and units. Multiple Tax Registrations This allows several parties to have several tax registrations. Comments You do not have permission to add comments.