R12 eBusiness Tax-Good

8/12/2019 R12 eBusiness Tax-Good

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Copyright 2010, Impac Services. All rights reserved.

R12 E-Business Tax


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What is E-Business Tax?

New Module in Release 12

New Tax Engine that automates tax calculation

across all Order to Pay and Procure to Payapplications

Use E-Business Tax to set up and maintain your

transaction tax requirements in all geographiclocations where you do business


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R12 Structure Canadian Structure

GST AND HST

GST HST

GST STD GST EXEMPT HST STDHST EXEMPT

GST EXEMPT HST EXEMPTBC HST HST STD

Tax Regime

Tax

Tax Status

Tax Rate

GST STD


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R12 Structure United States Structure

US SALES TAX

SALES TAX

STANDARD

Tax Regime

Tax

Tax Status

Tax RateWA RATE OR RATECA RATE ID RATE


7/51Copyright 2010, Impac Services. All rights reserved.

Upgrade and MigrationWhat happens during Migration (R11 to R12)

A tax regime was created for each operating unit defined in 11i. These taxregimes, named as 2 digit country code (from the Operating Unit Address) - tax,(ex: US-TAX) hold the tax setup that has been upgraded.

Tax was created for each tax code

Tax Status was created for each tax code

Tax Rate was created for each tax code

Tax codes are created and stored in a lookup table as "Output" tax

classification codes

The tax regime has a "subscription" defined to the operating unit(s) wheretaxes are to be calculated for the regime Country.



Upgrade and Migration

A Tax "Rule" is created as a "Direct rate rule". This sets therelationship between the tax classification code and the tax, taxstatus and tax rate.

STCC:

After an upgrade, the system will set "Configuration Owner TaxOptions" for each product and event class (An event class would beInvoices, Credit Memo, etc). This will be set as "Standard TaxClassification Code" or STCC following an upgrade. This, combinedwith the Direct Rate Rule that is created during the 11i upgraderesult in special code to be called when calculating taxes.

R12 New or Fresh setup will use the "Determine Tax Regime" taxdetermination method.



Migrated R11 Structure

US SALES TAX

STANDARD

Tax Regime

Tax

Tax Status

Tax RateWA RATE OR RATECA RATE ID RATE

OR RATEWA RATE ID RATECA RATE



Why Move to R12 Structure?

R12 Upgraded Structure has limitations, including:

Restrictions on creating new tax rules

Restrictions on Modifying or adding to existing tax rules

Restrictions on creating new tax jurisdictions

Restrictions on creating new taxes

You cannot modify existing tax formulas

You cannot implement partner integrations such as Vertex orTaxware



Why Move to R12 Structure?

You cant set up new tax groups

These limitations often make it difficult to use an upgraded atax regime for extended periods of time. And, tax laws changeor your business may expand into new areas covered bydifferent tax laws.

Benefits/Reasons for setting up fresh structure:

More flexibility to add/remove tax codes

Able to automate many of the tax decisions through the

creation of tax rules Single Source/Shared Module

All Legal Entities and Operating Units of the company canshare the same tax setup.

Individual Operating Units can still own tax setup for theirspecific requirements as needed or as defined by the tax

authority.



Option 1-Modify Upgraded Structure



Option 2Create New Structure

End-date the upgraded regime and

replace it with a new/freshly configured

Regime.

Option 2 is the recommended method.



How To Create a New Structure

Steps for Creating a new Structure:

Step 1Update the Tax Profile

Step 2Set up the new Regime to Rate Flow

Step 3Set up New Tax Rules

Step 4Update the Configuration Tax Options

Step 5Update Parties (Suppliers and/or Customers)

Step 6Test, Test, Test!



Pre-Requisites

Setting up the Applications for E-Business Tax:

1. Setting Up Tax Users

2. Setting Profile Option Values

3. Setting Up Lookup Codes

4. Setting Up TCA Geography Hierarchy

5. Setting Up Legal Entity

6. Setting Up Operating Units

7. Setting Up Accounts and Accounting Information

8. Setting Up TCA Classifications

9. Setting Up Oracle Inventory



TCA Architecture



Step 1

Update the Tax Profile



Step 1



Step 2-Create A Regime

Tax Regime:



Step 2Create a Regime

Assign Regime to a Party



Step 2Create a Tax



Step 2Create a Tax Status


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Step 2Create a Jurisdiction

OR Jurisdiction


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Step 2Create a Jurisdiction

WA Jurisdiction


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Step 2Create a Tax Rate


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Idaho-6%


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Step 3Create a Tax Rule

Determine Place of Supply


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Step 3Create a Tax Rule

After


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Step 3Make Tax Available

Tax


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Step 3Regime to Rate Flow

Completed Tax StructureRegime to Rate Flow


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Step 4Application Options

Lastchange the Tax Regime from STCC to Direct Rate by End-

dating the old Configuration Owner and creating a new

Configuration Owner record.


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Step 4Application OptionsCreate the new Configuration Owner record.


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Step 5Update Party Records

Optionally, Call up specific supplier and/or customer

recordsand assign them as exempt or as a no-rate

code.


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Step 6TEST, TEST, TEST!

ARIdaho Customer6% Tax Rate


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AR-Oregon customer0% Tax Rate


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APWashington Supplier9.5% Rate


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Oregon Supplier -0% Tax Rate


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Questions???


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R12 E-Business Tax

Rakesh N

R12 eBusiness Tax-Good

Documents

Transcript of R12 eBusiness Tax-Good