oracle fusion tax

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

Fusion Tax

Sreeni Devireddy Platform Technology Solutions Oracle Development

Oracle Confidential – Internal/Restricted/Highly Restricted


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Agenda

Configuration

Demo

Key Features

Implementation Experience

User Experience

Integration Experience

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Agenda

Configuration

Demo

Key Features


User Experience


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Regime

Tax

Tax Status Jurisdictions

Tax Rate

US Sales Tax Canadian Goods and Service Tax

Indian Excise and Customs

State Sales Tax County Sales Tax

City Sales Tax

Standard Reduced Exempt

Interstate

California Nevada

SFO Los Angeles

STD (5%) STD-USE (6%)

STD-RENTAL (7%)

Determine Tax Regimes

Determine Candidate Taxes

Determine Tax Applicability

Determine Place of Supply / Tax Jurisdictions

Determine Tax Registration

Determine Tax Status

Determine Tax Rate

Determine Taxable Basis

Calculate Taxes

Determine Recovery Rate

Basic Configuration

Advanced Configuration

Exemptions Exceptions


Configuration Determining Factors



Agenda

Configuration

Demo

Key Features


User Experience


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Demo - Example

• State Tax – Jurisdiction : California – Tax Status : Standard – Tax Rate : 7.25%

– No Tax Rules

• 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

• Ship-To = SFO; Product Type = Null; Intended Use = Null – State Tax : 7.25%

• Ship-To = HQ; Product Type = Null; Intended Use = Null – State Tax : 7.25% – City Tax : 5%

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

• US SUT Regime – Country : United States


Agenda

Configuration

Demo

Key Features


User Experience


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Agenda

Configuration

Demo

Key Features

Withholding Tax Thresholds Tax Point Date

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Key Features Summary

• Tax regulations globally supported by a single engine

• Centralized tax services across applications

• Data-driven engine

• Automatic tax calculation

• Manual overrides where authorized

Tax Engine

• 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

Simulation

• Tax partner integration infrastructure:

Tax Content

Tax Calculation Services

• Manual and External Tax Transactions in the Tax Repository

External Integration


• Tax Shared Service Center

• Configure once, subscribe

• Robust configuration lets Payables users to focus on transactional entry

• Advanced tax configuration features for complex regimes

• Rules to determine exact withholding tax applicable to each transaction line

• Changes to transaction information automatically applies relevant taxes

• Review taxes before invoice validation

• 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

Key Features Withholding Tax


Centralize Tax Compliance Automatic Global


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


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


Key Features Withholding Tax – Rule-based Configuration



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

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


North Dakota

Florida Discretionary Sales Surtax

Arizona City Sales Taxes

Tennessee State Single Article Rate

Key Features Thresholds


Key Features Tax Point Date


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

Requisitions, Orders

Purchase Receipts

Invoice Accounting

Payments Purchase Invoices


• 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 thresholds based on group of lines. Meet Florida Max Tax for specific product classifications

• Self Assess incremental tax, where supplier has applied incorrect rates

Key Features Other Enhancements


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


Rapid Implementation Spreadsheets Common Shareable Configuration: Tax Configuration

Workbook

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

Incremental configuration for changes to

Tax Rates

Tax Jurisdictions

Key Features Spreadsheets – with full automation using Out-of the Box Web services


Transaction Workbooks Taxable Transactions (ADFDi Online Spreadsheets)

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


• 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

Reporting & Analysis

Key Features Reporting and Analytics


Agenda

Configuration

Demo

Key Features


User Experience


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Challenges

• Tax legislations are Complex

• Time consuming to implement

• Constantly Changing

• Compliance risk on expansion

• Tax Users are no Application experts

Tax Rapid Implementation • Simple workbook to define common tax configuration

• 3 Sheets,~7-20 attributes each, uses common lingo, in-built validations and documentation

• Partners can jumpstart tax implementation in minutes

• Download existing configuration: update, add for changes and upload revised spreadsheet for changes to take effect

• 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



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Implementation Experience Tax Rapid Implementation 1

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


Implementation Experience Tax Content Library

Netherlands Belgium

France

Portugal

Spain

United Kingdom

Denmark

Poland

Austria

Germany

Sweden Italy

Slovakia

USA

Canada

Czech

Finland

Hungary

Ireland

Luxemburg

China Taiwan Singapore

Australia

New Zealand

Significant Predefined Tax Content Countries

Limited Predefined Tax Content Countries

Documented Tax Setup Countries

Tax Content delivered in Rapid Implementation Spreadsheets

Jump start tax implementation in minutes

Reach out to Oracle Success Manager assigned to your customer account to get content


Agenda

Configuration

Demo

Key Features


User Experience


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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

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


User Experience Simplified Payables Invoice

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User Experience Get Social

1

Tax errors during invoice entry

Payables User is notified of tax calculation error

Error transaction details submitted for analysis 2

Analyze & Correct

OSN notifications to open tax simulator

through simulator UI or download Diagnostic spreadsheet

3

Update Setup, correct Transaction

Based on the information in diagnostic spreadsheet, Update Setup either using Tax Rapid Implementation Spreadsheets or through Setup UI’s

4

Complete transactions with accurate tax

Submit invoice for validation

. Silent Mode Option: Payables User can speed up transaction entry with manual taxes Failed transactions submitted for Tax manager’s analysis


User Experience Get Social


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Tax errors during invoice entry

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Analyze & Correct

3

Update Setup, correct transaction

4

Complete transactions with accurate tax

.


Agenda

Configuration

Demo

Key Features


User Experience


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Copyright © 2014, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal 37


Challenge

o Effort, Cost with tax reporting from multiple point, custom solutions

o Overhead in maintaining tax changes in different systems – requiring different structure

o Lost opportunities in optimizing overall tax costs

o Compliance and Audit risk

Benefits

Solution

• 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

• Significant Cost Savings

• Enables Tax Shared Service Center

Centralized Tax Compliance


Integration Experience External Taxable Transactions


External Applications

eCommerce Billing

Procurement Supply Chain Management

Tax Configuration

Tax Repository Tax Services

Tax Reporting

Subledger Accounting

General Ledger

ERP Cloud

Taxable Transactions

Centralized Tax Compliance

External Journals

Direct tax adjustments

Tax on Journals

Sales and purchase transactions

Transactions with and without tax

Taxable Transactions


Integration Experience External Taxable Transactions


Resources


https://cloud.oracle.com/saasreadiness/erp


Resources


oracle fusion tax

Documents

tax registration

tax regimes

tax rules tax rate rules

null state tax

standard tax rate

goods tax rate

services tax rate

california tax status