Getting Started with E-Business Tax

Functional Overview and Strategies for Adoption

NOOAUG Quarterly Meeting
December 2013
Barbara Derks, Financial Solutions Architect

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2009 Oracle Corporation Proprietary and Confidential

Agenda
<Insert Picture Here>

E-Business Tax Overview

What is eBusiness Tax?
Features and Benefits

Integration with EBS Modules

Partner Integration
E-Business Tax Adoption Scenarios
Additional Resources

Copyright Oracle Corporation, 2006. All rights reserved.

Agenda
<Insert Picture Here>

E-Business Tax Overview

What is eBusiness Tax?
Features and Benefits

Integration with EBS Modules

Partner Integration
E-Business Tax Adoption Scenarios
Additional Resources

Copyright Oracle Corporation, 2006. All rights reserved.

What is E-Business Tax?

Manage Global Tax Challenge
Centralized Global Tax Engine Within An ERP
Rules-Based Global Tax Engine
Centralized controls
Common Configuration For Sharing Setups
Integration with Major Tax Vendors in US
Seeded Setup Libraries
Tax Simulator
Fully Supported Upgrade

Copyright 2013, Oracle and/or its affiliates. All rights reserved.

eBusiness Tax Rule Engine

Inventory

Receivables

Purchasing

4Ps
Determining
Factors

Tax
Regimes

Internal Use Only

Projects

Payables

Party
Place
Product
Process

Place of
Supply /
Taxation

Applicability
& Registration

Tax
Values

Status
&
Rates

Taxable
Basis

Tax
Calculation

Recovery
Rate

How Are Taxes Defined?

Operating
Unit Tax
Accounts

Tax
Regime

Tax

Tax
Jurisdiction

Tax
Status

Tax
Rate

Recovery
Rate

US Sales and
Use Tax

State Sales Tax

CA State Sales

Standard

7.25%

0%

US Sales and
Use Tax

State Sales Tax

PA State Sales

Standard

6.0%

0%

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

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Tax Manager Home Page

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Regime to Rate Flow

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Sample Tax Rule

10

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E-Business Tax
Seeded Data (CLIC) To Tackle Global Tax Challenge
Seeded Content
Configuration Library of Implementation Content (CLIC)

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E-Business Tax
Advance Tax Capabilities To Tackle Global Tax Challenge
Tax Simulator
Powerful user interface tool to simulate Tax Calculation, based on what-if scenarios.
Gives flexibility to test new and / or changed tax rules.
Can assist in auditing Tax Rules and confirm if a particular tax is being applied appropriately.
Provides quick way to simulate transactions with fewer validations for what-if scenarios
Please Note: It emulates transactions, but does not trigger actual transactions

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Copyright 2013, Oracle and/or its affiliates. All rights reserved.

E-Business Tax
Advance Tax Capabilities To Tackle Global Tax Challenge
Tax Simulator

13

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E-Business Tax
Tax Reporting
Centralized Tax Reporting

BI Publisher

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Agenda
<Insert Picture Here>

E-Business Tax Overview

What is eBusiness Tax?
Features and Benefits

15

Integration with EBS Modules

Partner Integration
E-Business Tax Adoption Scenarios
Additional Resources

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Where Can EB Tax Be Used?

Order to Cash

Inter-company Invoicing
General Ledger

Procure to Pay

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Oracle Purchasing
Oracle Internet Procurement
Consigned Inventory
Oracle Internet Expenses
Oracle Payables
Oracle Order Capture/iStore/Quoting
Oracle Order Management
Oracle Trade Management
Oracle Services Contracts
Oracle Project Accounting
Oracle Receivables
Oracle Inter-company Invoicing
Oracle General Ledger

Copyright Oracle Corporation, 2006. All rights reserved.

Where is EB Tax Not Used?

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)

2009 Oracle Corporation Proprietary and Confidential

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What About Localizations?

Separate Tax engine
India Localization

Latin America Localization

Extend E-Business Tax

China Golden Tax Adaptor
EMEA Localizations
Asia Localizations

2009 Oracle Corporation Proprietary and Confidential

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R11i Functionality in Release 12.1+

Setup is centralized in E-Business Tax application
Two new responsibilities to access E-Business Tax:
Tax Manager
Tax Administrator

11i Tax Codes have become Tax Classification Codes

System options Payables Options Financial Options
have been centralized to Defaults & Controls
Tax groups have been replaced by Tax Rules

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E-Business Tax
Commitment To Existing Customers

Supported upgrade From 11i to Release 12.1

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Copyright 2013, Oracle and/or its affiliates. All rights reserved.

Agenda
<Insert Picture Here>

E-Business Tax Overview

What is eBusiness Tax?
Features and Benefits

Integration with EBS Modules

Partner Integration
E-Business Tax Adoption Scenarios
Additional Resources

21

E-Business Tax Release 12.1

Validated Integrations : Additional Flexibility For Oracles Customers

Validated Sales & Use Tax Partner Solutions (Only For US)

Vertex
ADP
CCH
Sabrix (Thomson Reuters)

For more information on Oracle Validated Integrations from these partners and others please visit:
oracle.com/partners/goto/validate

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Copyright 2013, Oracle and/or its affiliates. All rights reserved.

E-Business Tax
Partner Integration Scenarios
Partner Integration

Seamless and flexible integration using subscription model

US Sales Tax & Global Taxes, including VAT, calculated by E-Business Tax with
User defined tax rates
US Sales Tax Calculated by E-Business Tax with rates provided by Oracle validated
tax partners
US Sales tax calculated by Oracle Validated Partner Tax Solution

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Oracle eBusiness Tax

Partner Integration Overview
eBusiness Suite

Transaction Data

Transaction Tax Data

Oracle eBusiness Tax

Tax Services Request Manager

Content
Repository

Services
Tax
Content
Services

Tax
Determination
Services

Tax
Administration
Services

Record
Repository
Partner
Tax Content
Interface

Partner
Integration

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Partner
Tax Services
Interface

Tax Partner
Tax Content

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Tax Services

E-Business Tax Partner Integration Scenarios

Understanding Key Concepts
How are customers typically using Partner Integration?
US Scenarios
Simple rules, few jurisdictions
Use EB Tax for content and services (no partner)
Simple rules, many jurisdictions, many rate changes
Use Partner for tax content (rates)

Complex rules, insufficient manpower / expertise to maintain

Use Partner for tax content and services with EB Tax
Structure
Outside US Scenario

Simple rules, few jurisdictions

Use EB Tax for content and services (no partner)

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Copyright Oracle Corporation, 2006. All rights reserved.

Agenda
<Insert Picture Here>

E-Business Tax Overview

What is eBusiness Tax?
Features and Benefits

26

Integration with EBS Modules

Partner Integration
E-Business Tax Adoption Scenarios
Additional Resources

Copyright Oracle Corporation, 2006. All rights reserved.

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

2009 Oracle Corporation Proprietary and Confidential

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Tax Calculation Methods

Rule Based (Available for Upgrade or Fresh Implementation)

Single Interface for Transactions

Purchasing

Parties
Places

Payables

Product

Determine Applicable Tax Status Taxable

&
Regimes
Taxes
Basis
Rate

Calculate
Tax
Amount

Process

Sales Orders

Transparent Integration with Tax Partner Services

Receivables
Taxes,
Rules

2009 Oracle Corporation Proprietary and Confidential

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Tax Calculation Methods

Direct Rate Determination (Upgrade only)

Parties
Single Interface for Transactions

Purchasing

Payables

Places
Tax
Classification
Code

Determine
Regimes

Applicable
Taxes

Tax Status
& Rate

Direct Rate Determination

Taxable Calculate
Tax
Basis
Amount

Product
Sales Orders

Transparent Integration with Tax Partner Services

Process

Receivables

2009 Oracle Corporation Proprietary and Confidential

Taxes,
Rules

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Agenda
<Insert Picture Here>

E-Business Tax Overview

What is eBusiness Tax?
Features and Benefits

Integration with EBS Modules

Partner Integration
E-Business Tax Adoption Scenarios
Additional Resources

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Pre-defined Setups
Doc ID 463001.1

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Copyright 2013, Oracle and/or its affiliates. All rights reserved.

E-Business Tax
Upload Capabilitities
Upload User Tax Content

Ability to upload Custom Tax Rates and Geography File For US

Doc ID 1072665.1

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For More Information

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

2009 Oracle Corporation Proprietary and Confidential

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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

2009 Oracle Corporation Proprietary and Confidential

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For More Information

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

2009 Oracle Corporation Proprietary and Confidential

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For More Information

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

2009 Oracle Corporation Proprietary and Confidential

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QUESTIONS
ANSWERS

The above reflects Oracles current development plans which are subject to change at any time