Oracle Fusion Tax

Fusion Tax
Sreeni Devireddy
Platform Technology Solutions
Oracle Development
Copyright 2014, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential Internal/Restricted/Highly Restricted
Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracles products remains at the sole discretion of Oracle.
Agenda
1
Configuration
Demo
Key Features
Implementation Experience
User Experience
Integration Experience
Agenda
1
Configuration
Demo
Key Features
User Experience
Regime
Determine Tax Regimes
US Sales Tax
Canadian Goods and Service Tax
Indian Excise and Customs
Determine Candidate Taxes
Tax
Basic
Configuration
State Sales Tax

County Sales Tax
City Sales Tax
Advanced
Configuration
Tax Status Jurisdictions

Standard
Reduced
Exempt
Interstate
Determine Tax Applicability

Determine Place of Supply /
Tax Jurisdictions
Determine Tax Registration
California
Nevada
SFO
Los Angeles
Determine Tax Status

Determine Tax Rate
Determine Taxable Basis
Tax Rate
STD (5%)
STD-USE (6%)
STD-RENTAL (7%)
Calculate Taxes
Determine Recovery Rate
Copyright 2014, Oracle and/or its affiliates. All rights reserved. |
Exemptions
Exceptions
Configuration
Determining Factors
Agenda
1
Configuration
Demo
Key Features
User Experience
Demo - Example
US SUT Regime
Country : United States
Ship-To = SFO; Product Type = Null; Intended Use = Null
State Tax
State Tax : 7.25%
Ship-To = HQ; Product Type = Null; Intended Use = Null
Jurisdiction : California
Tax Status : Standard
Tax Rate : 7.25%
Ship-To = HQ; Product Type = Goods; Intended Use = Null
No Tax Rules
State Tax : 7.25%

City Tax : 5%
State Tax : 7.25%
City Tax : 1%
Ship-To = HQ; Product Type = Services; Intended Use =

Null
State Tax : 7.25%
City Tax : 2%
Ship-To = HQ; Product Type = Anything; Intended Use =

Non-Business
State Tax : 7.25%
City Tax
Jurisdiction : Redwood City

Tax Status : Standard
Tax Rate : 5%
Tax Rules
Tax Rate Rules

IF (Product Type = Goods); Tax Rate = 1%
IF (Product Type = Services); Tax Rate = 2%
Tax Applicability Rule
IF (Intended Use = Non-Business); Result = Not Applicable
Agenda
1
Configuration
Demo
Key Features
User Experience
10
Agenda
1
Configuration
Demo
Key Features
Withholding Tax
Thresholds
Tax Point Date
11
Key Features
Summary
Tax Engine
Tax regulations globally
supported by a single engine
Centralized tax services
across applications
Data-driven engine
Automatic tax calculation
Manual overrides where
authorized
External Integration
Tax partner integration
infrastructure:
Tax Content
Tax Calculation Services
Manual and External Tax
Transactions in the Tax
Repository
Simulation
Create transactions for simulation
or copy live transactions
Update tax attributes on
transactions
On-line review the results of tax
rules
Enable taxes for simulation and/or
for tax live processing
What-if analysis
Key Features
Withholding Tax
Centralize Tax Compliance
Tax Shared Service Center

Configure once, subscribe
Robust configuration lets
Payables users to focus on
transactional entry
Advanced tax configuration
features for complex regimes
Automatic
Rules to determine exact

withholding tax applicable to
each transaction line
Changes to transaction
information automatically
applies relevant taxes
Review taxes before invoice
validation
Global
Quick configuration for simple

regimes
Taxes Based on transaction info
Considers all purchases from a
supplier across business units
for schedules, thresholds
Taxable, tax amount thresholds
and schedules for by
transaction, period
13
Key Features
Withholding Tax Simple Configuration

Enable the Apply Withholding option and set the other withholding tax options
in the Withholding Tax Options region on the Manage Tax Reporting and
Withholding Tax Options page
Create each tax authority as a supplier with a supplier type of Tax Authority
Create withholding tax codes (i.e, tax rates)
Create withholding tax classifications to group the codes
Specify withholding tax group for Suppliers / Sites

Define withholding tax certificates to handle rate exceptions
14
Key Features
15
Key Features
16
Key Features
17
Key Features
18
Key Features
19
Key Features
Withholding Tax Advanced / Rules-Based Configuration

Enable the Apply Withholding option and set the other withholding tax options
in the Withholding Tax Options region on the Manage Tax Reporting and
Withholding Tax Options page
Define the Withholding Tax Regime and subscribe BU / Legal Entity to it

Create Withholding Tax and associate it with Tax Authority
Create Withholding Tax Jurisdiction, Tax Status & Tax Rates
Update Third Party Tax Profile (Supplier Site) to Register for Withholding Tax
Registration
Define rules using the registration status and other determining factors for
dynamic rate derivations
20
Key Features
Withholding Tax Rule-based Configuration
21
Key Features
Withholding Tax Rule-based Configuration
22
Key Features
Thresholds
Define minimum or maximum tax rate, taxable amount,

or tax amount limits either for:
Tax, if these are evaluated for all transactions to
which tax applies
Tax jurisdiction, if these apply to all purchases
and sales that occur in that jurisdiction
North Dakota
Tennessee
State Single Article Rate
Arizona
City Sales Taxes
Florida
Discretionary Sales Surtax
If thresholds apply only in certain circumstances then

specify these thresholds as a result of the
corresponding tax rule, taxable basis rule or tax amount
rules
Apply taxable and tax amount thresholds for a

transaction line or for the entire document
23
Key Features
Tax Point Date
Requisitions,
Orders
Purchase
Receipts
Payments
Purchase
Invoices
Invoice
Accounting
The event at which tax is

recoverable, reporting
Tax Point can be Invoice,
Delivery, Accounting or
Payment events
Taxes calculated for
Receipts, on accounting
Taxes with Delivery Tax
Point are recovered and
reported on receipt
Option to calculate and
report delivery based on
Invoice
Tax Accounted, Reported on
Invoice Accounting
Tax Recovered on Payment
based on payment amount,
discounts and currency
24
Key Features
Other Enhancements
Tax Determinants consistently captured and carried
forward on all transaction events across procure to pay
and order to cash flows
Location of Final Discharge, First and Third Party Tax
registrations added as tax determinants
Tax for non-recoverable adjustments calculated and
available for reporting
Tax calculation for intercompany transactions
orchestrated by supply chain financial orchestration
Tax Providers, Partners can

Provide content using Spreadsheets templates for
Regimes to Rates, Tax Rules
Download rates, jurisdictions into spreadsheet. Update,
add and upload
Read tax lines extract for Reporting & Filing needs
has this integration available for Fusion Customers
Tax thresholds based on group of lines. Meet Florida

Max Tax for specific product classifications
Self Assess incremental tax, where supplier has applied
incorrect rates
25
Key Features
Spreadsheets with full automation using Out-of the Box Web services
Rapid Implementation Spreadsheets
Transaction Workbooks
Common Shareable Configuration: Tax Configuration

Workbook
Taxable Transactions (ADFDi Online Spreadsheets)
Regime to Rates
Independent Spreadsheets for Tax Regimes, Taxes, Rates,

Recovery Rates
Tax Rules
Organization Specific (sensitive) configuration
First Party Tax Registrations
Subscriptions to Tax Regimes
Party Tax Profiles: Including Registrations, Classifications
Tax Accounts
Purchase Transactions
Sales Transactions
Taxable Journals (ADFDi Online Spreadsheets)
Miscellaneous Taxable Transactions
Adjustments
Bulk Import of External Transactions (xlsm spreadsheet

templates for offline use)
Transactions without tax
Transactions with tax calculated in external systems
Incremental configuration for changes to
Tax Rates
Tax Jurisdictions
26
Key Features
Reporting and Analytics

Reporting & Analysis
Central Data Extraction for Tax Auditing and Reporting
Tax Reporting by Legal Entity or VAT Group Legal Entity
Multi-Currency Tax Reporting
Tax Box Allocation Reports

Tax Audit and Reconciliation Reporting
European Sales Listing
Intrastat Reporting
Tax Point Date

Tax Reporting for France, Italy, Sinpapore, Spain and UK, US, etc.
Generic BI Publisher
Agenda
1
Configuration
Demo
Key Features
User Experience
28
Challenges
Tax legislations are Complex
Tax Rapid Implementation

Simple workbook to define common tax configuration
Time consuming to implement
3 Sheets,~7-20 attributes each, uses common lingo, in-built

validations and documentation
Constantly Changing
Partners can jumpstart tax implementation in minutes
Compliance risk on expansion
Download existing configuration: update, add for changes and

upload revised spreadsheet for changes to take effect
Tax Users are no Application experts
New Legal Entities automatically enabled for tax of the relevant

geography tax profile
Tax Managers can focus on their core competency without the
overhead of gaining application expertise
29
Tax Rapid Implementation
Tax Configuration Workbook

Download from Manage Tax Regimes
2
Upload & Enable
Generate CSV File to Upload button creates files for upload.
On successful completion, enable taxes for transactions
3
Organization Specific, Sensitive Configuration
Download Tax Implementation Workbook for Tax Accounts, First
Party Registrations, Business Unit Subscription to regimes
30
Tax Content Library
China
Taiwan
United Kingdom
Germany
Finland
Belgium
Netherlands
Hungary
France
Austria
Ireland
Singapore
Canada
USA
Portugal
Denmark
Significant Predefined Tax

Content Countries
Poland
Slovakia
Limited Predefined Tax Content

Countries
Sweden
Italy
Spain
Czech
Documented Tax Setup Countries
Tax Content
delivered in
Rapid
Implementation
Spreadsheets
Jump start tax
implementation
in minutes
Luxemburg
Australia
New Zealand
Reach out to
Oracle Success
Manager
assigned to your
customer
account to get
content
31
Agenda
1
Configuration
Demo
Key Features
User Experience
32
User Experience
Simplified Payables Invoice

1. Lines region would be for
entering, reviewing what you
see on supplier invoice
2. Key tax determinants included
in default view
3. Separate Taxes region.
Expanding this calculates taxes
5 2
1
3
4. Review taxes. Enforce tax

amounts on Supplier invoice
5. Click refresh icon to recalculate
taxes
6. Edit taxes, view line level taxes
right from the region
33
User Experience
Get Social
1
Tax errors during invoice entry
Payables User is notified of tax calculation error
Error transaction details submitted for analysis
Analyze & Correct

OSN notifications to open tax simulator
through simulator UI or download
Diagnostic spreadsheet
4
Complete transactions with accurate tax
Submit invoice for validation
Silent Mode Option: Payables User can speed up
transaction entry with manual taxes
Update Setup, correct Transaction

Based on the information in diagnostic
spreadsheet, Update Setup either using Tax
Rapid Implementation Spreadsheets or
through Setup UIs
Failed transactions submitted for Tax managers analysis

34
User Experience
Get Social
Tax errors during invoice entry
2
Analyze & Correct
3
Update Setup,
correct transaction
4
Complete transactions with accurate tax
.
35
Agenda
1
Configuration
Demo
Key Features
User Experience
36
Centralized Tax Compliance
Challenge
Solution
o Effort, Cost with tax reporting

from multiple point, custom
solutions
o Lost opportunities in
optimizing overall tax costs
External Taxable Transactions

Configure once and apply same tax rules consistently across all
transactions Created from Fusion or External Applications
Easy to use spreadsheets to enter transactions and import for tax
processing
Spreadsheet templates for bulk load of transactions
Centralized tax lines repository and reporting
Legislation Changes: configure once, simulate and enable
o Compliance and Audit risk
Benefits
o Overhead in maintaining tax

changes in different systems
requiring different structure
Significant Cost Savings

Enables Tax Shared Service Center
Copyright 2014, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential Internal
37
ERP Cloud
External Applications
eCommerce
Procurement
Tax
Configuration
Billing
Supply Chain
Management
Taxable
Transactions
Tax on Journals
External Journals
Direct tax adjustments
Tax Services
Tax
Repository
Subledger
Accounting
General
Ledger
Tax
Reporting
Centralized Tax
Compliance
Taxable Transactions
Sales and purchase transactions
Transactions with and without tax
38
39
Resources
https://cloud.oracle.com/saasreadiness/erp
40
Resources
41
Resources
42

Oracle Fusion Tax

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Oracle Fusion Tax

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Fusion Tax

Safe Harbor Statement

Determine Tax Regimes

Determine Candidate Taxes

State Sales Tax

Tax Status Jurisdictions

Determine Tax Applicability

Determine Tax Status

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Country : United States

Ship-To = SFO; Product Type = Null; Intended Use = Null

State Tax : 7.25%

Ship-To = HQ; Product Type = Null; Intended Use = Null

Ship-To = HQ; Product Type = Goods; Intended Use = Null

State Tax : 7.25%

Ship-To = HQ; Product Type = Services; Intended Use =

Ship-To = HQ; Product Type = Anything; Intended Use =

Jurisdiction : Redwood City

Tax Rate Rules

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Centralize Tax Compliance

Tax Shared Service Center

Rules to determine exact

Quick configuration for simple

Withholding Tax Simple Configuration

Specify withholding tax group for Suppliers / Sites

Withholding Tax Simple Configuration

Withholding Tax Simple Configuration

Withholding Tax Simple Configuration

Withholding Tax Simple Configuration

Withholding Tax Simple Configuration

Withholding Tax Advanced / Rules-Based Configuration

Define the Withholding Tax Regime and subscribe BU / Legal Entity to it

Withholding Tax Rule-based Configuration

Withholding Tax Rule-based Configuration

Define minimum or maximum tax rate, taxable amount,

If thresholds apply only in certain circumstances then

Apply taxable and tax amount thresholds for a

The event at which tax is

Tax Providers, Partners can

has this integration available for Fusion Customers

Tax thresholds based on group of lines. Meet Florida

Common Shareable Configuration: Tax Configuration

Taxable Transactions (ADFDi Online Spreadsheets)

Independent Spreadsheets for Tax Regimes, Taxes, Rates,

Organization Specific (sensitive) configuration

First Party Tax Registrations

Subscriptions to Tax Regimes

Party Tax Profiles: Including Registrations, Classifications

Taxable Journals (ADFDi Online Spreadsheets)

Miscellaneous Taxable Transactions

Bulk Import of External Transactions (xlsm spreadsheet

Transactions without tax

Transactions with tax calculated in external systems

Incremental configuration for changes to

Reporting and Analytics

Tax Box Allocation Reports

Tax Point Date

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Tax Rapid Implementation

Time consuming to implement

3 Sheets,~7-20 attributes each, uses common lingo, in-built

Partners can jumpstart tax implementation in minutes