EBT Implementation Considerations

2009 Oracle Corporation Proprietary and Confidential
Important Considerations When Implementing Oracle E-Business Tax In R12

Thursday, October 14, 2010 12:00 PM Eastern
Day, Date, 2004 time p.m. ET
Upcoming Receivables Community Webcasts:

October 28, 2010: E-Business Tax R12 Setup US Location Based Taxes Part 1, Prerequisites & Regimes November 4, 2010: E-Business Tax R12 Setup US Location Based Taxes Part 2, Rules, Types, Profiles November 18, 2010: Setup & Usage of Document Sequencing In Oracle Receivables Please send your requests for future Receivables Advisor Webcast Event topics to ARNEWS_US@oracle.com, subject: Topics of Interest.
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Important Considerations When Implementing Oracle E-Business Tax In R12

Vikranth Medury Principal Software Engineer
Program Agenda
Features of E-Business Tax Upgrade Versus Fresh Implementation Tax Calculation Methods Partner Integrations Localizations Tax Reporting Resources
Features Of E-Business Tax

Single point solution to manage transaction-based taxes Configuration and maintenance of tax content Tax Rules Tax Repository Tax Simulator Tax Reporting Formats Common Configuration Upgrade Process

Functionality supported by Oracle E-Business Tax:
Procure to Pay Transactional Taxes Order to Cash Transactional Taxes Sales and Use Tax (Location Based Tax) Tax Reporting Tax on General Ledger

Functionality not migrated to Oracle E-Business Tax:
Latin Tax Engine Payables Withholdings Payables Extended Withholdings (Latin America) Brazilian Withholding Tax Calendar
Functionality not available in Oracle E-Business Tax:

Payroll Taxes (Oracle Payroll) Property Taxes (Oracle Assets)
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E-Business Tax Components
Tax Content Services Tax Content Repository Tax Service Request Manager Tax Determination Services Tax Record Repository Tax Administration Services Tax Reporting Ledger
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Tax Content Services Subcomponents
Basic tax configuration Tax jurisdictions Party tax profiles Fiscal classifications Exemptions and Exceptions Country default controls
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Tax Determination Services main subcomponents A. Tax Rules Management
Tax rules Tax determining factor sets Tax determining factors Tax condition sets Determine Place of Supply Tax Applicability Tax Registration Tax Status Tax Rate Taxable Basis Calculate Tax Amounts Recovery Rate
B. Tax Determination Management
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Regime To Rate Flow
Tax Regime Tax Tax Jurisdiction Tax Status Tax Rate Operating Unit Tax Accounts
Tax Tax Regime US Sales Tax State Sales Tax
Tax Jurisdiction California State Sales Tax
Tax Status Standard Standard
Tax Rate 7.25% 1.0% 0%
Operating Unit Tax Accounts 01.005.004.033 01.005.004.033 01.005.004.033
County Sales Tax San Mateo County Sales Tax City Sales Tax
Belmont City Sales Standard Tax
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E-BTax meets the following Business Requirements in R12:
Sales and Use Tax in Procurement Self-Assessed Tax in Payables Multiple Registrations Deferred Tax in AP Enhanced Handling of Tax on Freight Enhanced Exemptions and Exceptions Multiple Inclusive, Compounding Quantity Based Rates in Procurement
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Program Agenda
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Upgrade Versus Fresh Implementation

Stages Of Implementation From 11i To R12
Upgrade
Standard migration from Release 11i to Release 12 Migration requires no manual effort, completely automated 11i tax functionality supported out of the box
Upgrade + New Features

Minimum setup changes Allows enhanced E-BTax functionality (moving to fresh implementation) Can be tailored based on business needs
Fresh Implementation
Fully utilizing E-BTax functionality and features
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Comparison 11i Versus R12 Location Based Tax
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Comparison 11i Versus R12 Tax Codes & Groups
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11i Tax Codes & Groups Versus R12 (Upgraded)
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What Happens During The Upgrade
Migration Naming Convention
New data naming strategy for location-based tax Example, Tax Regime: US-SALES-Tax-101 Taxware example, ST-CA-90000-00 Manual data example, ST-CA-11735 New data naming strategy for non-location-based tax Tax Regime:<Country Code of OU>||"Tax" or <Country Code of OU>||Tax Type
Migration of Receivables Address Validation Parameter
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Data Ownership of Upgraded Data Location-Based Tax Upgrade Defaulting Hierarchy Upgrade of Tax Recovery Party Tax Information Tax Registrations Tax Exemptions
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Tax Overrides
Customer Exemption Inclusive Tax Lines Tax Rounding Tax Rate
Tax Transaction Upgrade Receivables Tax Calculation Flag on Transaction Types Different credit percentages for Tax and Line for AR Credit Transactions Global Descriptive Flexfield migration changes
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What Happens During The Upgrade Tax Profile Upgrade
Release 11 i Invoice Freight as Revenue Tax Inventory Item for Freight Tax: Allow Ad Hoc Tax Changes Tax: Allow Manual Tax Lines Tax: Allow Override of Customer Exemptions Tax: Allow override of tax code Release 12 eBTax: Invoice Freight as Revenue eBTax: Inventory Item for Freight eBTax: Allow Ad Hoc Tax Changes eBTax: Allow Manual Tax Lines eBTax: Allow Override of Customer Exemptions eBTax: Allow Override of Tax Classification Code
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Fresh Implementation Analyze Requirements
Who are you? A corporation, Government, non-government What are your operations/businesses?
Where do your businesses operate? (Place) What type of business do you conduct? (Process) What products/services do you buy or sell? (Product) Who are your customers and suppliers? (Party) Process
What taxes are you subject to?
Party
EBTax
Product
Place
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Fresh Implementation Considerations
Configuration ownership Global Operating Unit (OU) specific Exemptions must be created manually No interface No Application Programming Interface (API) (Party Tax Profile) Geographical Location Information (API for US location only) Use of Tax Configuration Library User defined PL/SQL taxable basis type at tax code level obsolete in R12 These will not be migrated Only upgraded customers can have the regime determination set Standard Tax Classification Code (STCC) Non-upgrade customers can use Determine Applicable Regimes
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Program Agenda
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Tax Calculation Methods

Rule Based
Single Interface for Transactions
Purchasing
Parties Places
Determine Applicable Tax Status Taxable & Regimes Taxes Basis Rate Calculate Tax Amount
Payables
Product Process
Sales Orders
Transparent Integration with Tax Partner Services
Receivables
Taxes, Rules
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Tax Calculation Methods

Direct Rate Determination (Upgrade only)
Parties
Single Interface for Transactions
Purchasing
Places
Tax Classification Code
Determine Regimes Applicable Taxes Tax Status & Rate
Payables
Direct Rate Determination
Taxable Calculate Tax Basis Amount
Product Sales Orders

Transparent Integration with Tax Partner Services
Process
Receivables
Taxes, Rules
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Program Agenda
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Partner Integrations
What are partner integrations? Who are the certified partners?
Vertex Taxware
Setup
Service Mappings Service Extensions
How does it work?
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Tax Content Service Overview
Partner Integration
Oracle eBusiness s Tax
Products
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Tax Determination Service Overview
Partner Integration
Oracle eBusiness T Tax
Products
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Program Agenda
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Localizations
Separate Tax engine
India Localization Latin America Localization
Extend E-Business Tax

China Golden Tax Adaptor EMEA Localizations Asia Localizations
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Program Agenda
36
Tax Reporting
Tax Reporting Types and Codes Types of Reports
Tax Reporting Ledger (TRL) Non-TRL Reports
Reporting Formatting
Standard Reports (RDF) Reports Exchange (RXI) Reports
Reporting Level
Legal Entity Ledger Operating Unit
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Program Agenda
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For More Information

Tax Partners:
Oracle E-Business Tax: Vertex Q-Series and Taxware Sales / Use Tax System Implementation Guide - Release 12 Note 761438.1, Using Vertex Q Series and Troubleshooting the Integration with R12 eBTax. Note 806575.1, Using Taxware and Troubleshooting the Integration with R12 eBTax
http://www.oracle.com/us/partnerships/solutions/index.html#currentval
Localizations:
Note 811483.1, Oracle Golden Tax Adaptor for Mainland China Release Notes, Release 12.1.1 Note 784692.1, Troubleshooting Latin America Tax Release 12 Tax Calculation Issues Note 472055.1, India Localization uptake of E-Business Tax in R12
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Upgrade:
Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i to Release 12 Note 810443.1, Overview of the E-Business Tax R12 Upgrade for Order to Cash (Important Pre-Upgrade Patches to Consider) Note 1062897.1, Case Study: How to Switch From an Upgraded Tax Regime to a New Tax Regime - Canada HST example Note 256.1, Upgrade Advisor: Oracle E-Business Suite Financials Upgrade from 11.5.10.2 to 12.1.2
Tax Reporting:
Oracle E-Business Tax Reporting Guide Note 737320.1, Troubleshooting R12 E-Business Tax (EBTax) Reporting Issues
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Note 1117544.1 E-Business Tax (EBTax) Information Center Note 735991.1, Implementing and Using Tax Recovery in Release 12 E-Business Tax Note 885225.1, White Paper on Setting Up Tax Accounting Note 554492.1, White Paper on Setting Up Geography Hierarchy And Address Validation in Release 12 Note 1072665.1, How to Load a custom rate file in R12 EBusiness Tax Note 780989.1, R12: Upgrade Versus Reimplementation (Financials) Note 463001.1, E-Business Tax Seed Data Note 215.1, E-Business Tax News Note 216.1, E-Business Tax News Archived Issues
41

E-Business Tax Community
https://communities.oracle.com/portal/server.pt/community/e-business_tax/232
Webcast on Partner Integration

https://conference.oracle.com/imtapp/app/arc_pb_hub.uix?mID=158449556&src=a pp/arc_pub&action=pb
The recorded version of this webcast will be available within the next 24 hours and can be downloaded from the Advisor Webcast Archive, Note 740964.1. PDF files of previous Receivables presentations are available for download from the Receivables Community Documentation area.
Once in My Oracle Support, select the Community Tab Select the Enter Here button Select the Receivables Community from the My Communities box Expand the Receivables All Community Documents area.
42
Questions
To ask a question on the phone line, select *1 on your telephone. To ask a question via voice streaming, select the Chat icon and enter your question in the dialog box. Follow up questions on material from todays webcast can be posted to: https://communities.oracle.com/portal/server.pt/community /view_discussion_topic/216?threadid=142136 Please send your requests for future Receivables Advisor Webcast Event topics to ARNEWS_US@oracle.com, subject: Topics of Interest. Your feedback helps shape what we offer and how it is delivered. To provide your feedback on any Receivables content, Community, webcast, and/or newsletters, please email annemarie.provisero@oracle.com.
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2009 Oracle Corporation Proprietary and Confidential

Important Considerations When Implementing Oracle E-Business Tax In R12

Day, Date, 2004 time p.m. ET

Upcoming Receivables Community Webcasts:

Teleconference Access: Teleconference Access:

2009 Oracle Corporation Proprietary and Confidential

2009 Oracle Corporation Proprietary and Confidential

ATTENTION AUDIO INFORMATION

2009 Oracle Corporation Proprietary and Confidential

Safe Harbor Statement

2009 Oracle Corporation Proprietary and Confidential

<Insert Picture Here>

Important Considerations When Implementing Oracle E-Business Tax In R12

2009 Oracle Corporation Proprietary and Confidential

Features Of E-Business Tax

2009 Oracle Corporation Proprietary and Confidential

Features Of E-Business Tax

2009 Oracle Corporation Proprietary and Confidential

Features Of E-Business Tax

Functionality not available in Oracle E-Business Tax:

2009 Oracle Corporation Proprietary and Confidential

Features Of E-Business Tax

2009 Oracle Corporation Proprietary and Confidential

Features Of E-Business Tax

2009 Oracle Corporation Proprietary and Confidential

Features Of E-Business Tax

B. Tax Determination Management

2009 Oracle Corporation Proprietary and Confidential

Features Of E-Business Tax

Tax Tax Regime US Sales Tax State Sales Tax

Tax Jurisdiction California State Sales Tax

Tax Status Standard Standard

Tax Rate 7.25% 1.0% 0%

Operating Unit Tax Accounts 01.005.004.033 01.005.004.033 01.005.004.033

Belmont City Sales Standard Tax

2009 Oracle Corporation Proprietary and Confidential

Features Of E-Business Tax

2009 Oracle Corporation Proprietary and Confidential

2009 Oracle Corporation Proprietary and Confidential

Upgrade Versus Fresh Implementation

Upgrade + New Features

2009 Oracle Corporation Proprietary and Confidential

Upgrade Versus Fresh Implementation

2009 Oracle Corporation Proprietary and Confidential

Upgrade Versus Fresh Implementation

2009 Oracle Corporation Proprietary and Confidential

Upgrade Versus Fresh Implementation

2009 Oracle Corporation Proprietary and Confidential

Upgrade Versus Fresh Implementation

Migration of Receivables Address Validation Parameter

2009 Oracle Corporation Proprietary and Confidential

Upgrade Versus Fresh Implementation

2009 Oracle Corporation Proprietary and Confidential

Upgrade Versus Fresh Implementation

2009 Oracle Corporation Proprietary and Confidential

Upgrade Versus Fresh Implementation

2009 Oracle Corporation Proprietary and Confidential

Upgrade Versus Fresh Implementation

What taxes are you subject to?

2009 Oracle Corporation Proprietary and Confidential

Upgrade Versus Fresh Implementation

2009 Oracle Corporation Proprietary and Confidential

2009 Oracle Corporation Proprietary and Confidential

Tax Calculation Methods