EBT Implementation Considerations 3

© 2009 Oracle Corporation – Proprietary and Confidential
1
Important Considerations When
Implementing Oracle E-Business Tax In R12
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5
<Insert Picture Here>
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

7
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

8
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

9
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)

10
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

11
Tax Content Services Subcomponents

• Basic tax configuration
• Tax jurisdictions
• Party tax profiles
• Fiscal classifications
• Exemptions and Exceptions
• Country default controls

12
Tax Determination Services main subcomponents
A. Tax Rules Management
• Tax rules
• Tax determining factor sets
• Tax determining factors
• Tax condition sets
B. Tax Determination Management
• Determine Place of Supply
• Tax Applicability
• Tax Registration
• Tax Status
• Tax Rate
• Taxable Basis
• Calculate Tax Amounts
• Recovery Rate

13
Regime To Rate Flow
Tax Tax Tax Tax Operating

Tax Unit Tax
Regime Jurisdiction Status Rate
Accounts
Tax Tax Tax Jurisdiction Tax Tax Operating Unit

Regime Status Rate Tax Accounts
US State Sales Tax California State Standard 7.25% 01.005.004.033
Sales Sales Tax
Tax County Sales Tax San Mateo County Standard 1.0% 01.005.004.033
Sales Tax
City Sales Tax Belmont City Sales Standard 0% 01.005.004.033
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

15
Program Agenda
Features of E-Business Tax

• Upgrade Versus Fresh Implementation
• Localizations
• Tax Reporting
• Resources

16
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

17
Comparison 11i Versus R12 Location Based Tax

18
Comparison 11i Versus R12 Tax Codes & Groups

19
11i Tax Codes & Groups Versus R12 (Upgraded)

20
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

21
• Data Ownership of Upgraded Data
• Location-Based Tax Upgrade
• Defaulting Hierarchy
• Upgrade of Tax Recovery
• Party Tax Information
• Tax Registrations
• Tax Exemptions

22
• 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

23
Tax Profile Upgrade

Release 11 i Release 12
Invoice Freight as Revenue eBTax: Invoice Freight as Revenue
Tax Inventory Item for Freight eBTax: Inventory Item for Freight
Tax: Allow Ad Hoc Tax Changes eBTax: Allow Ad Hoc Tax Changes
Tax: Allow Manual Tax Lines eBTax: Allow Manual Tax Lines
Tax: Allow Override of Customer eBTax: Allow Override of Customer
Exemptions Exemptions
Tax: Allow override of tax code eBTax: Allow Override of Tax
Classification Code

24
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)
• What taxes are you subject to?
Process
Party EBTax Product
Place

25
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

26
Program Agenda
Features of E-Business Tax <Insert Picture Here>

• Localizations
• Tax Reporting
• Resources

27
Tax Calculation Methods
Rule Based
Single Interface for Transactions

Purchasing Parties
Places Determine Applicable Tax Status Taxable Calculate
& Tax
Product Regimes Taxes Basis
Payables Rate Amount
Process
Sales Orders Transparent Integration with Tax Partner Services
Receivables
Taxes,
Rules

28
Direct Rate Determination (Upgrade only)
Parties
Single Interface for Transactions
Purchasing Places
Determine Applicable Tax Status
Tax Regimes Taxes & Rate Taxable Calculate
Classification Basis Tax
Payables Code Direct Rate Determination Amount
Product
Transparent Integration with Tax Partner Services
Sales Orders
Process
Receivables
Taxes,
Rules

29
Program Agenda

• Localizations
• Tax Reporting
• Resources

30
Partner Integrations
• What are partner integrations?
• Who are the certified partners?
• Vertex
• Taxware
• Setup
• Service Mappings
• Service Extensions
• How does it work?

31
Tax Content Service Overview
Products
Oracle eBusinesss Tax
Integration
Partner

32
Tax Determination Service Overview
Products Tax
Oracle eBusiness T
Integration
Partner

33
Program Agenda

• Localizations
• Tax Reporting
• Resources

34
Localizations
• Separate Tax engine
• India Localization
• Latin America Localization
• Extend E-Business Tax

• China Golden Tax Adaptor
• EMEA Localizations
• Asia Localizations

35
Program Agenda

Localizations
• Tax Reporting
• Resources

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

37
Program Agenda

Localizations
Tax Reporting
• Resources

38
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

39
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

40
• 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 E-
Business 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
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• 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 today’s 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
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THANK YOU

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© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

• Presentation – approximately 45 minutes

© 2009 Oracle Corporation – Proprietary and Confidential

North America: +1-877-664-9143

© 2009 Oracle Corporation – Proprietary and Confidential

The following is intended to outline our general

© 2009 Oracle Corporation – Proprietary and Confidential

Important Considerations When Implementing

• Features of E-Business Tax

© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

Functionality not available in Oracle E-Business Tax:

© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

Tax Content Services Subcomponents

© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

Tax Tax Tax Tax Operating

Tax Tax Tax Jurisdiction Tax Tax Operating Unit

© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

Features of E-Business Tax

© 2009 Oracle Corporation – Proprietary and Confidential

• Upgrade + New Features

© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

• Migration Naming Convention

• New data naming strategy for non-location-based tax

• Migration of Receivables Address Validation Parameter

© 2009 Oracle Corporation – Proprietary and Confidential

• Data Ownership of Upgraded Data

• Location-Based Tax Upgrade

• Upgrade of Tax Recovery

• Party Tax Information

© 2009 Oracle Corporation – Proprietary and Confidential

• Receivables Tax Calculation Flag on Transaction Types

© 2009 Oracle Corporation – Proprietary and Confidential

Tax Profile Upgrade

© 2009 Oracle Corporation – Proprietary and Confidential

Party EBTax Product

© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

Features of E-Business Tax <Insert Picture Here>

Upgrade Versus Fresh Implementation

© 2009 Oracle Corporation – Proprietary and Confidential

Single Interface for Transactions

Sales Orders Transparent Integration with Tax Partner Services

© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

Features of E-Business Tax <Insert Picture Here>

Upgrade Versus Fresh Implementation

© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential

Features of E-Business Tax <Insert Picture Here>

Upgrade Versus Fresh Implementation

© 2009 Oracle Corporation – Proprietary and Confidential

• Latin America Localization

• Extend E-Business Tax