VAT-GCC Business Pre-requisite:

1. Final policy and procedure of VAT

2. Identify the Products/Vendors/Customers getting affected by VAT
3. Group Companies registered under VAT & reporting structure as
per Oracle EBS(may be legally multiple companies are VAT
registered but configured as Single OU at Oracle EBS)
4. VAT Exempted products of the company if any. To identify, if
same vendor is supplying VAT affected & Exempted products for
setup/testing purpose.
5. Identify the different types of procurements like
Local/Import/Intra-GCC transactions
6. Format of Sales Invoices with VAT & Arabic descriptions and to
identify existing reports getting affected & required to be
customized.
7. New structure if any for sales pricing, affecting masters
setup/uploads
8. New structure if any for Inventory Costing
9. Methods and reporting of Input credit/Output, VAT Calculations &
reporting formats.
10. Sample accounting entries of VAT affected all transactions
with current business/system process and expected new process
and how it should be represented into new reports format.

VAT Implementation Project Pre-requisite:

1. Understand first:
a. Organizational statutory Structure as per VAT Compliance

b. How those statutory organizations are configured in Oracle EBS

c. Configuration affecting functionalities/modules/processes

d. Mechanism of VAT Calculations at Oracle EBS at various

transactions.

e. VAT System Implementation approach

2. Copy of the Oracle EBS production instance as Development

instance for development/testing.

3. Preparation of Requirement & Solution design document of the

functions/process getting affected, configurations & Test scripts.

4. Identify the reports getting affected and customization required to

include VAT line/columns for statutory/operations/management
reporting

5. To study the existing Oracle EBS structure and to decide whether

VAT setup at LE or OU level

6. How is the Intercompany and re-exports are getting affected and

related regulations.

7. Exception handling & testing like Credit/Debit Notes of

vendors/customers
8. To configure/customize/setup the companies registered under VAT
but defined in Oracle EBS as single OU or one-to-many relationships.

9. Configuration & Testing of Intercompany transactions.

10. Standard Operating Procedure(SOPs) of various VAT affecting

transactions with process flow and system functionality and conduct
workshops/training sessions

Challenges:
1. Statutory Reporting format(to my knowledge, still not yet
published)

2. All existing customized reports have to be modified. For example,

PO output, Sales Invoice, Purchase invoice approval journals.

3. Existing systems changes or new system implementation before

Dec-17.

4. Internal Resources to have Taxation knowledge.

By Sivasubramanian Ira.

https://www.linkedin.com/in/irasiva/

email: irasiva@gmail.com

www.profecture.com