Oracle Tax Reporting Ledger in 11i

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Oracle EOracle E--Business SuiteBusiness Suite

-- Tax Reporting Ledger inTax Reporting Ledger in

11i.1011i.10Alex Fiteni CMAAlex Fiteni CMAFiteni International LLCFiteni International LLC

Managing Risk,Managing Risk,Leading ChangeLeading Change


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2/15/20072/15/2007Copyright 2006 Fiteni InternationalCopyright 2006 Fiteni International

LLCLLC 22

Fiteni International LLCFiteni International LLC Fiteni International LLC is a professionalFiteni International LLC is a professional

services practice focused on Oracle Eservices practice focused on Oracle E--Business Suite implementations,Business Suite implementations,compliance and process changecompliance and process changemanagement.management.

Alex Fiteni CMA, President, was mostAlex Fiteni CMA, President, was mostrecently a Director of Applicationsrecently a Director of ApplicationsDevelopment with Oracle GlobalDevelopment with Oracle GlobalFinancials. He provides projectFinancials. He provides project

management, financial and technicalmanagement, financial and technicalservices on ERP, financial and back officeservices on ERP, financial and back officesystems implementations.systems implementations.


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LLCLLC 33

AgendaAgenda IntroductionIntroduction

OverviewOverview Defining a reportDefining a report

Content OverviewContent Overview

Running a ReportRunning a Report Other Tax reportsOther Tax reports Q&AQ&A


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LLCLLC 44

IntroductionIntroduction Topic: An Overview of the Oracle Tax reportingTopic: An Overview of the Oracle Tax reporting

LedgerLedger The Oracle Tax Reporting Ledger is a comprehensiveThe Oracle Tax Reporting Ledger is a comprehensive

tool for reporting and extracting tax relevant data fromtool for reporting and extracting tax relevant data from

Oracle subOracle sub--ledgers and General Ledgerledgers and General Ledger

Audience:Audience: Accountants, Tax Analysts, Oracle Business AnalystsAccountants, Tax Analysts, Oracle Business Analysts

Objective:Objective:

Develop an understanding of the tax reporting ledgerDevelop an understanding of the tax reporting ledger

and gain proficiency in building reportsand gain proficiency in building reports


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LLCLLC 55

OAUGOAUG eLearningeLearning Seminar goalsSeminar goals

Tax

The objectives of this OAUGThe objectives of this OAUG

eLearningeLearning seminar are to:seminar are to: develop a functional understanding ofdevelop a functional understanding of

the Tax Reporting Ledger (TRL)the Tax Reporting Ledger (TRL)

gain some knowledge and insight togain some knowledge and insight to

better support tax to ledgerbetter support tax to ledger

reconciliations, audits, and analysisreconciliations, audits, and analysis

create customized reports to met localcreate customized reports to met local

tax reporting needstax reporting needs


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LLCLLC 66

VocabularyVocabulary RXiRXi Report Exchange an extract and reporting tool used to prepareReport Exchange an extract and reporting tool used to prepare

reports and output to Excel, and Text formats.reports and output to Excel, and Text formats.

TRLTRL Tax Reporting LedgerTax Reporting Ledger Sales TaxSales Tax Sales taxes are tax levies charged on applicable revenuesSales taxes are tax levies charged on applicable revenues

according to law; and reported and paid periodically to the releaccording to law; and reported and paid periodically to the relevant taxingvant taxing

jurisdictionjurisdiction

Use TaxUse Tax or consumption tax levied by local jurisdictions where goodsor consumption tax levied by local jurisdictions where goods

and services are delivered from outside the jurisdiction but conand services are delivered from outside the jurisdiction but consumedsumedlocally, and are often accrued and paid by the buyer rather thanlocally, and are often accrued and paid by the buyer rather than the seller.the seller.

VATVAT Value Added Tax imposed on the value of goods and servicesValue Added Tax imposed on the value of goods and services

(mostly European states use this type of taxation system)(mostly European states use this type of taxation system)

GSTGST Goods and Services TaxGoods and Services Tax used in Canada and Australiaused in Canada and Australia similar tosimilar to

VATVAT Consumption TaxConsumption Tax Japan levies a consumption tax on the value ofJapan levies a consumption tax on the value of

goodsgoods


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LLCLLC 77

How Report Exchange (How Report Exchange (RXiRXi) works) works

Define/Modify

Attribute Set

Run TRL

Via

Report

Request

Review

Report

Output

for

correctness

eBS

Print & Purge

Extract

Output

Extract process

RXiAttribute

Sets


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LLCLLC 88

RXiRXi and TRL Reportingand TRL Reporting RXiRXi--only: Financial Tax Registeronly: Financial Tax Register

Contains Attribute SetsContains Attribute Sets When invoked via a Report Request in the RequestWhen invoked via a Report Request in the Request

Center:Center:

An Attribute Set is used to extract data from GL, ARAn Attribute Set is used to extract data from GL, AR

and/or AP using the Financial Tax Registers to produceand/or AP using the Financial Tax Registers to produce An extract with all required data instantiated in anAn extract with all required data instantiated in an

interface tableinterface table

A printed or file based outputA printed or file based output

A process to purge the interface tableA process to purge the interface table

NOTE:NOTE: RXiRXi is not compatible with the XML Publisher as it does not produceis not compatible with the XML Publisher as it does not produce

a file in an XML output formata file in an XML output format


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LLCLLC 99

TRL Reporting ScopeTRL Reporting Scope Set of Books levelSet of Books level

covers allcovers allsubordinatesubordinatetransactionstransactions

Legal entity is theLegal entity is thesum of allsum of allsubordinatesubordinateOperating UnitsOperating Units

Scope limited toScope limited totransaction withintransaction withina single org.a single org.

Set of Books

Legal entity

OperatingUnit


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LLCLLC 1010

Tax Reporting Ledger HierarchyTax Reporting Ledger Hierarchy Document #Document #

Party identificationParty identification Document valueDocument value

Line #Line #

Goods, ServicesGoods, Services Value, TaxValue, Tax

Tax Value byTax Value by

JurisdictionJurisdiction

Tax AccountsTax Accounts

Posting statusPosting status

Header

Level

Line Level

Tax Distribution Level


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DefiningDefining RXiRXi ReportsReports

Part 1Part 1


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LLCLLC 1212

Defining a TRL Report using theDefining a TRL Report using the

Report Exchange DesignerReport Exchange Designer

Steps:Steps:

Choose the Financial Tax registerChoose the Financial Tax register

DEFAULT layoutDEFAULT layout

Copy to and name a new Attribute SetCopy to and name a new Attribute Set

Modify the new Attribute Set to extractModify the new Attribute Set to extract

required datarequired data

Add Display, Count and Sum propertiesAdd Display, Count and Sum propertieswhere requiredwhere required

Save new Attribute SetSave new Attribute Set


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LLCLLC 1313

Attribute Set ModifiersAttribute Set Modifiers Modify PrintModify Print

HeadingHeading Add or dropAdd or drop

AttributesAttributes

Modify AttributeModify Attributedisplay formatdisplay format

Sum on AttributesSum on Attributes

Count on AttributesCount on Attributes

Group/Break onGroup/Break on

AttributesAttributes

Determines DisplayDetermines Display

CharacteristicsCharacteristics DeterminesDetermines

Content of ExtractContent of Extract

Determines howDetermines howdata is printeddata is printed

Level and type ofLevel and type of

summary datasummary data

Determines how toDetermines how to

print summariesprint summaries


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LLCLLC 1414

Defining the Report LayoutDefining the Report Layout Parameters can be printed on every pageParameters can be printed on every page

Use of Breaks are key to getting the rightUse of Breaks are key to getting the rightsummariessummaries

Sum, Count totals can be added onSum, Count totals can be added on

Attribute Breaks, Pages, Running Totals,Attribute Breaks, Pages, Running Totals,and at Report leveland at Report level

Format money and Dates are optionalFormat money and Dates are optional

DemoDemo....


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LLCLLC 1515

Defining a TRL ReportDefining a TRL Report

In Vision, Responsibility isIn Vision, Responsibility isRXiRXi

DesignerDesigner

Menu: Set UpMenu: Set Up RXiRXi

Available TRL Reports:Available TRL Reports: RXiRXi--only: Financial Tax Registeronly: Financial Tax Register

DEFAULTDEFAULT Tax RegisterTax Register

ATTRSET2ATTRSET2Tax Register with Tax RecoveryTax Register with Tax Recovery When running a Report RequestWhen running a Report Request


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LLCLLC 1616


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LLCLLC 1717


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LLCLLC 1818


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LLCLLC 1919

Define Report HeadingsDefine Report Headings


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LLCLLC 2020

Define Date FormatDefine Date Format


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LLCLLC 2121

Managing Attribute SetsManaging Attribute Sets Always start with a core Attribute SetAlways start with a core Attribute Set

(DEFAULT)(DEFAULT) Rename the copy, then start makingRename the copy, then start making

changeschanges

Make sure that the templates areMake sure that the templates are

well testedwell tested

Use Applications Security features toUse Applications Security features tolimit access to sensitive informationlimit access to sensitive information


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Tax Reporting LedgerTax Reporting LedgerContentContent

Part 2Part 2


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2/15/20072/15/2007 Copyright 2006 Fiteni InternationalCopyright 2006 Fiteni InternationalLLCLLC 2323

Scope of Transaction ContentScope of Transaction Content General Ledger:General Ledger:

Manual Journal Entries (with Account Method VAT turned on)Manual Journal Entries (with Account Method VAT turned on)

Receivables:Receivables: Sales InvoicesSales Invoices

Credit, Debit MemosCredit, Debit Memos

Line, Tax, Invoice AdjustmentsLine, Tax, Invoice Adjustments

Cash Applications for Deferred TaxCash Applications for Deferred Tax

Earned, Unearned DiscountsEarned, Unearned Discounts Finance ChargesFinance Charges

Miscellaneous Cash ReceiptsMiscellaneous Cash Receipts

Payables:Payables: Invoices, Credit MemosInvoices, Credit Memos

PrepaymentsPrepayments Deferred VATDeferred VAT

Global DescriptiveGlobal Descriptive FlexfieldsFlexfields Not Included:Not Included:

DescriptiveDescriptive FlexfieldsFlexfields (columns are included but not populated)(columns are included but not populated)


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Header Level DataHeader Level Data Party Data ElementsParty Data Elements

Reporting EntityReporting Entity Partner EntitiesPartner Entities

Billing (Customer, Supplier)Billing (Customer, Supplier)

ShippingShipping

MerchantMerchant Tax IdentifiersTax Identifiers

Document Data ElementsDocument Data Elements

Document SequenceDocument Sequence

Transaction NumberTransaction Number FOB PointFOB Point


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Line (Shipment) DataLine (Shipment) Data Inventory ItemInventory Item

Gross TaxableGross TaxableAmountAmount

Unit QuantityUnit Quantity

UOM BaseUOM Base

ShipShip--To LocationTo Location

ShipShip--From LocationFrom Location

AP ProductAP Product

category or ARcategory or ARItem ClassificationItem Classification

Line AmountLine AmountTaxable basisTaxable basis

Line Amount byLine Amount byTax CodeTax Code

No Unit PriceNo Unit Price


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Tax Distribution DataTax Distribution Data GL Tax Liability AccountGL Tax Liability Account

Posted StatusPosted Status Tax CodeTax Code

Tax ClassTax Class

Taxable AmountTaxable Amount Entered, AccountedEntered, Accounted

Tax AmountTax Amount Entered, AccountedEntered, Accounted

RecoverableRecoverable

NonNon--recoverablerecoverable

Discounted AmountsDiscounted Amounts Entered, AccountedEntered, Accounted


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RunningRunning RxiRxi ReportsReports

Part 3Part 3


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Running anRunning an RXiRXi ReportReport

-- Report ParametersReport Parameters

Key Attributes and best practicesKey Attributes and best practices

Always enter a Transaction Date RangeAlways enter a Transaction Date Range

Always enter a GL Date RangeAlways enter a GL Date Range

Distribution based reportsDistribution based reports Use a GL Natural Account range for TaxUse a GL Natural Account range for TaxLiability AccountsLiability Accounts

Use a BSV Range for transactionUse a BSV Range for transactionaffecting a legal entityaffecting a legal entity


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Running anRunning an RXiRXi ReportReport

-- ExampleExample

Period: MayPeriod: May--0505

Transactions:Transactions: 1 transaction sale in1 transaction sale in VaVa StateState

Other Parameters:Other Parameters: GL PostedGL Posted NoNo

GL DatesGL Dates Required parametersRequired parameters

Transaction datesTransaction dates Ensure rangeEnsure rangecovers at least the GL Dates rangecovers at least the GL Dates range

DEMODEMO


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RXiRXi Exporting DataExporting Data RXiRXi reportsreports

Text (DEFAULT)Text (DEFAULT) CSVCSV

HTMLHTML

Tab DelimitedTab DelimitedXML is not available at this timeXML is not available at this time

NOTE: Report Request can export to a PDFNOTE: Report Request can export to a PDF

if requiredif required


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2/15/20072/15/2007 Copyright 2006 Fiteni InternationalCopyright 2006 Fiteni International

LLCLLC 3434

SeededSeeded RXiRXi Tax ReportsTax Reports ((RXiRXi) US Sales Tax Reports) US Sales Tax Reports -- Best for US sales and UseBest for US sales and Use

taxestaxes Allows DEFAULT Attribute Set onlyAllows DEFAULT Attribute Set only

RXiRXi: US Sales Tax Report: US Sales Tax Report -- HeaderHeader

RXiRXi: US Sales Tax Report: US Sales Tax Report -- LineLine

((RXiRXi) Financial Tax Register) Financial Tax Register -- best for VAT and Latin taxesbest for VAT and Latin taxes Allows variations of DEFAULT and ATTRSET2 templatesAllows variations of DEFAULT and ATTRSET2 templates

DEFAULTDEFAULT recoverable onlyrecoverable only

ATTRSET2ATTRSET2 recoverable and nonrecoverable and non--recoverablerecoverable

RXiRXi: Korean VAT Report Extract: Korean VAT Report Extract

RXiRXi: Korean Withholding Tax Report Extract: Korean Withholding Tax Report Extract

AP Withholding Tax ExtractAP Withholding Tax Extract

Czech Export tax reportCzech Export tax report RXiRXi--only: Thai Output Tax Summary Reportonly: Thai Output Tax Summary Report


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LLCLLC 3535

Other Tax ReportsOther Tax Reports Reports 9iReports 9i

Tax by Taxable AccountTax by Taxable Account -- best for Japanbest for Japan European** Tax RegisterEuropean** Tax Register -- best forbest forDeferred VATDeferred VAT Interim, Tax, NonInterim, Tax, Non--recoverablerecoverable

There are a variety of GlobalizationThere are a variety of Globalizationreports for country specific compliancereports for country specific compliance

needsneeds

Tax Set Up Verification ReportTax Set Up Verification Report used toused tocheck on whether set up is completecheck on whether set up is complete NOTE: ** for some European countries, use the reportsNOTE: ** for some European countries, use the reports

that are specifically created for themthat are specifically created for them


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LLCLLC 3636

Best practices & proceduresBest practices & procedures Avoid running extracts coincident with the periodAvoid running extracts coincident with the period

end procedures (e.g. weekly)end procedures (e.g. weekly)

Need to run theNeed to run the RXiRXi report periodically to reviewreport periodically to reviewnonnon--posted itemsposted items

Visual reconciliation should occur prior toVisual reconciliation should occur prior toperforming extract for each control accountperforming extract for each control account

Run extracts separately for GL, AP and AR toRun extracts separately for GL, AP and AR toensure performanceensure performance The extract job should be automated as much asThe extract job should be automated as much as

possible through CM and other processespossible through CM and other processes Use Event and Demand Alerts in ProductionUse Event and Demand Alerts in Production

instance to proinstance to pro--actively warn of issuesactively warn of issues Ensure that purge and clean up procedures keepEnsure that purge and clean up procedures keep

interface table clearinterface table clear


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LLCLLC 3737

Q & AQ & A Additional ReadingAdditional Reading

115artax.pdf115artax.pdf Chapter 9Chapter 9


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LLCLLC 3838

Contact InformationContact Information Alex Fiteni CMAAlex Fiteni CMA Cell: +1Cell: +1--650650--799799--59495949

Office: +1Office: +1--702702--990990--38693869 Fax: +1Fax: +1--603603--590590--25982598

[email protected]@fiteni.com

www.fiteni.comwww.fiteni.com

blog.fiteni.comblog.fiteni.com

Professional Services:Professional Services: Oracle EOracle E--Business SuiteBusiness Suite

GlobalizationGlobalization Statutory andStatutory and

Regulatory ComplianceRegulatory Compliance

Tax complianceTax compliance

Implementation,Implementation,Upgrade, OptimizationUpgrade, Optimization

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Change ManagementChange Management Business Process ReBusiness Process Re--

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Oracle Tax Reporting Ledger in 11i

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