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Table of Contents

1. Purpose of the document ............................................................................................................................................... 3

2. Assumptions and Prerequisites ....................................................................................................................................... 3

3. Feature Specific Setup..................................................................................................................................................... 4

Corporate Conversion Rate ................................................................................................................................................. 4

Tax Reporting Types and Codes (Optional) ......................................................................................................................... 5

Tax Rate Setup .................................................................................................................................................................... 6

4. Invoice Entry in Payables (Functional Currency of SGD) ................................................................................................. 8

Domestic Invoices (SGD) ..................................................................................................................................................... 8

Foreign Currency Invoices ................................................................................................................................................... 9

Tax Rate Name .................................................................................................................................................................. 10

Validating, Accounting and Posting .................................................................................................................................. 10

5. Invoice Entry in Payables (Non-SGD Functional Currency) ........................................................................................... 11

Domestic Invoices (SGD) ................................................................................................................................................... 11

Foreign Currency Invoices ................................................................................................................................................. 13

Tax Rate Name .................................................................................................................................................................. 14

Validating, Accounting and Posting .................................................................................................................................. 14

6. Transaction Entry in Receivables (Functional Currency of SGD) ................................................................................... 15

Transaction Date ............................................................................................................................................................... 15

Invoice Lines ...................................................................................................................................................................... 15

Tax Rate Name .................................................................................................................................................................. 15

Completing, Accounting and Posting ................................................................................................................................ 15

7. Transaction Entry in Receivables (Non-SGD Functional Currency) ............................................................................... 17

Foreign Currency Transactions ......................................................................................................................................... 17

Tax Reporting for Singapore

Oracle Financials for Asia Pacific

ERP CLOUD

2

SGD Currency Transactions ............................................................................................................................................... 19

Transaction Date ............................................................................................................................................................... 21

Invoice Lines ...................................................................................................................................................................... 21

Tax Rate Name .................................................................................................................................................................. 21

Completing, Accounting and Posting ................................................................................................................................ 21

8. Reporting ....................................................................................................................................................................... 22

Input Tax Gain and Loss Report for Singapore .................................................................................................................. 22

Input Tax Gain and Loss Report Parameters ..................................................................................................................... 22

Input Tax Gain and Loss Report Output ............................................................................................................................ 23

Output Tax Gain and Loss Report for Singapore ............................................................................................................... 24

Output Tax Gain and Loss Report Parameters .................................................................................................................. 24

Output Tax Gain and Loss Report Output ......................................................................................................................... 25

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1. Purpose of the document

This document explains the implementation and usage guidelines for the following reports:

Input Tax Gain and Loss Report for Singapore

Output Tax Gain and Loss Report for Singapore

The reports allow you to report on the taxable gain and/or loss on transactions entered in Oracle Payables and Oracle

Receivables. The gain or loss may arise due to differences between the accounting gain and loss using a corporate

conversion rate and the conversion rate provided by the supplier or General Ledger Daily Rate.

The reports can then be used to help you finalize your tax returns to IRAS (Inland Revenue Authority of Singapore)

The document explains the pre-requisite setup, important transaction entry aspects and report output details. In this

document, ‘USD’ refers to US Dollars; ‘SGD’ refers to ‘Singapore Dollars’

2. Assumptions and Prerequisites

In this document, the following entities are assumed to have already been setup :

Data Security – Refer to the Fusion Security topical essay available on cloud.oracle.com

Geographies

Enterprise Structure

Tax Regime to Rate setup

Tax Party Profiles

Tax Rules

Suppliers

Customers

Procurement Business Function

Common Options for Payables and Receivables

It is recommended that the ‘Implementation Project’ is complete for your organization before commencing the ‘Feature

Specific Setup’ outlined below. If you require further details, refer to the Analyze and Report section of Oracle Financials

Cloud (Get Started) web site.

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3. Feature Specific Setup

Corporate Conversion Rate

Task name: Manage Daily Rates

Navigation : Navigator –> Setup and Maintenance -> Manage Daily Rates

Foreign currency transactions (non-SGD) are converted to SGD using an ‘In-house Conversion Rate’. The In-house

conversion rate can be set up in the ‘Currency Rates Manager’ UI in the ‘Daily Rates’ tab. Then the Singapore reports can

help to track the gain/loss in GST amount using the actual exchange rate used to calculate GST at the time of the

transaction, and the In-house Conversion Rate. "Use the ‘Create in Spreadsheet’ utility to create the ‘In-house

Conversion Rates’ between Singapore Dollars and the currencies of the foreign invoices.

The ‘In-house Conversion Rate’ configured and used for foreign currency conversion to SGD, is also shown in the report.

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Tax Reporting Types and Codes (Optional)

Task name : Manage Tax Reporting Types

Navigation : Navigator –> Setup and Maintenance -> Manage Tax Reporting Types

Setup Tax Reporting Codes to group your transactions for reporting purposes. In this example a tax reporting code is

setup for the Singapore tax rates. This will allow you to run the report by ‘Tax Reporting Code’ across all tax rates.

The Tax Reporting Code can then be assigned to the tax rate(s) that relate to your GST transactions.

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Tax Rate Setup

Task name: Manage Tax Rates and Tax Recovery Rates

Navigation : Navigator –> Setup and Maintenance -> Manage Tax Rates and Tax Recovery Rates

Assign the ‘Tax Reporting Code’ to the tax rate(s) that relate to your GST transactions.

Assign a ‘Tax Recoverable Account’ to the ledger for the tax rate codes.

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4. Invoice Entry in Payables (Functional Currency of SGD)

In Singapore, most companies operate with SGD as their primary ledger currency. This section describes the invoice

entry procedures for such implementations.

Task name: Create Invoice

Navigation : Navigator –> Payables Invoices -> Create Invoice

Create an invoice and pay special attention to the following.

Domestic Invoices (SGD)

Invoices need to have the tax rate applied, validated, accounted and posted to General Ledger. The Tax Point Date in

Singapore is typically the ‘Invoice Date’. However, you have the flexibility to report taxes using some other ‘Tax Point’ as

befits your particular business scenario. Domestic invoices should have an ‘Invoice Currency’ of SGD.

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Foreign Currency Invoices

For foreign currency invoices, enter the ‘Supplier Tax Invoice Conversion Rate’ in the ‘Tax Tab’ for the invoice. If you do

not do this, the report is unable to calculate the gain/loss on an invoice and the report output shows ‘Unspecified’ in the

‘Supplier Conversion Rate’ column in the report output. This means that the report is not able to determine the SGD

amounts for tax reporting and cannot calculate any gain/loss on the invoice. This is evident from the ‘Undetermined’

entry for the amounts (see screenshot below)

If you encounter this scenario, you simply need to edit the invoice and enter the value for the ‘Supplier Tax Invoice

Conversion Rate’ and re-run the report.

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Tax Rate Name

The invoice needs to have the tax rate code applied that relates to current Singapore tax rate. In this example, the ‘SG

GST Standard Rate’ is applied.

Validating, Accounting and Posting

‘Validate’ the invoice and ‘Account and Post to Ledger’. Invoices that are not validated, accounted and posted do not

appear on the report.

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5. Invoice Entry in Payables (Non-SGD Functional Currency)

Some companies in Singapore may operate with a non-SGD primary ledger. For example, USD may be the currency of

the primary ledger. In such implementations, the report output shows different information to assist you for your tax

returns. This section describes the invoice entry requirements.

Task name: Create Invoice

Navigation : Navigator –> Payables Invoices -> Create Invoice

Create an invoice and pay special attention to the following.

Domestic Invoices (SGD)

Invoices need to have the tax rate applied, validated, accounted and posted to General Ledger. The Tax Point Date in

Singapore is typically the ‘Invoice Date’. However, you have the flexibility to report taxes using some other ‘Tax Point’ as

befits your particular business scenario. Enter domestic invoices with an ‘Invoice Currency’ of SGD. Ensure the

corporate ‘Conversion Rate’ is applied on the invoice to convert from SGD to USD (which is the primary ledger currency)

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13

Foreign Currency Invoices

For foreign currency invoices, enter the ‘Supplier Tax Invoice Conversion Rate’ in the ‘Tax Tab’ for the invoice. If you do

not do this, the report is unable to calculate the SGD converted amounts on the invoice and the report output shows

‘Unspecified’ in the ‘Supplier Conversion Rate’ column in the report output. The SGD amounts in the report output is

‘Undetermined’.

If you encounter this scenario, you simply need to edit the invoice and enter the value for the ‘Supplier Tax Invoice

Conversion Rate’ and re-run the report. The SGD amounts can then be determined now you have specified the

conversion rate.

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Tax Rate Name

Apply the tax rate code that relates to current Singapore tax rate to the transaction. In this example, the ‘SG GST

Standard Rate’ is applied.

Validating, Accounting and Posting

‘Validate’ the invoice and ‘Account and Post to Ledger’. Invoices that are not validated, accounted and posted do not

appear on the report.

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6. Transaction Entry in Receivables (Functional Currency of SGD)

In Singapore, most companies operate with SGD as their primary ledger currency. This section describes the transaction

entry procedures for such implementations.

Task name: Create Transaction

Navigation : Navigator –> Receivables Billing -> Create Transaction

Create a transaction and pay special attention to the following.

Transaction Date

In Singapore, the Tax Point Date is the transaction/invoice date. The report only shows the transactions that have a

transaction date that is in the period range.

Invoice Lines

The report shows each invoice line number as a separate row in the report

Tax Rate Name

Apply the tax rate code that relates to current Singapore tax rate to the transaction. In this example, the ‘SG GST

Standard Rate’ is applied.

Completing, Accounting and Posting

‘Complete’ the transaction and ‘Account and Post to Ledger’. Transactions that are not completed, accounted and

posted do not appear on the report.

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17

7. Transaction Entry in Receivables (Non-SGD Functional Currency)

Some companies in Singapore may operate with a non-SGD primary ledger. For example, USD may be the currency of

the primary ledger. In such implementations, the report output shows different information to assist you for your tax

returns. This section describes the transaction entry requirements.

Task name: Create Transaction

Navigation : Navigator –> Receivables Billing -> Create Transaction

Create a transaction and pay special attention to the following.

Foreign Currency Transactions

Foreign currency transactions are converted to SGD amounts in the report. This is achieved by the ‘Corporate’ rate

setup between SGD and the foreign currency and shows as the ‘Spot Conversion Rate’ in the report output.

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SGD Currency Transactions

Domestic SGD transactions are converted to the primary ledger currency amounts in the report. This is achieved by the

inverse ‘Corporate’ rate setup between SGD and the foreign currency and shows as the ‘In-house Conversion Rate’ in the

report output. For example, transaction 1457 is a SGD invoice converted to the USD primary ledger currency.

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Transaction Date

In Singapore, the Tax Point Date is the transaction/invoice date. The report only shows the transactions that have a

transaction date that is in the period range.

Invoice Lines

The report shows each invoice line number as a separate row in the report.

Tax Rate Name

Apply the tax rate code that relates to current Singapore tax rate to the transaction. In this example, the ‘SG GST

Standard Rate’ is applied.

Completing, Accounting and Posting

‘Complete’ the transaction and ‘Account and Post to Ledger’. Transactions that are not completed, accounted and

posted do not appear on the report.

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8. Reporting

The Input and Output Tax Gain and Loss reports for Singapore can be submitted as follows:

Input Tax Gain and Loss Report for Singapore

Navigation : Navigator –> Tools -> Scheduled Processes

After you have entered, validated and accounted your invoices, they appear in the ‘Input Tax Gain and Loss Report for

Singapore’

Input Tax Gain and Loss Report Parameters

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Input Tax Gain and Loss Report Output

The report layout differs depending on whether you run the report for SGD primary ledger currency, or a foreign

currency primary ledger.

SGD Primary Ledger Example:

Non-SGD Primary Ledger Example:

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Output Tax Gain and Loss Report for Singapore

Navigation : Navigator –> Tools -> Scheduled Processes

After you have completed and accounted your transactions, they appear in the ‘Output Tax Gain and Loss Report for

Singapore’

Output Tax Gain and Loss Report Parameters

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Output Tax Gain and Loss Report Output

The report layout differs depending on whether you run the report for SGD Primary Ledger Currency, or a foreign

currency primary ledger.

SGD Primary Ledger Example:

Non-SGD Primary Ledger Example:

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