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Fusion Tax

Sreeni Devireddy
Platform Technology Solutions
Oracle Development

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Safe Harbor Statement


The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracles products remains at the sole discretion of Oracle.

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Agenda
1

Configuration

Demo

Key Features

Implementation Experience

User Experience

Integration Experience

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Agenda
1

Configuration

Demo

Key Features

Implementation Experience

User Experience

Integration Experience

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Regime

Determine Tax Regimes

US Sales Tax
Canadian Goods and Service Tax
Indian Excise and Customs

Determine Candidate Taxes

Tax

Basic
Configuration

State Sales Tax


County Sales Tax
City Sales Tax

Advanced
Configuration

Tax Status Jurisdictions


Standard
Reduced
Exempt
Interstate

Determine Tax Applicability


Determine Place of Supply /
Tax Jurisdictions
Determine Tax Registration

California
Nevada
SFO
Los Angeles

Determine Tax Status


Determine Tax Rate
Determine Taxable Basis

Tax Rate
STD (5%)
STD-USE (6%)
STD-RENTAL (7%)

Calculate Taxes
Determine Recovery Rate

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Exemptions
Exceptions

Configuration

Determining Factors

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Agenda
1

Configuration

Demo

Key Features

Implementation Experience

User Experience

Integration Experience

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Demo - Example

US SUT Regime

Country : United States

Ship-To = SFO; Product Type = Null; Intended Use = Null

State Tax

State Tax : 7.25%

Ship-To = HQ; Product Type = Null; Intended Use = Null

Jurisdiction : California
Tax Status : Standard
Tax Rate : 7.25%

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

No Tax Rules

State Tax : 7.25%


City Tax : 5%
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%

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

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Agenda
1

Configuration

Demo

Key Features

Implementation Experience

User Experience

Integration Experience

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Agenda
1

Configuration

Demo

Key Features
Withholding Tax
Thresholds
Tax Point Date

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Key Features
Summary

Tax Engine
Tax regulations globally
supported by a single engine
Centralized tax services
across applications
Data-driven engine
Automatic tax calculation
Manual overrides where
authorized

External Integration
Tax partner integration
infrastructure:
Tax Content
Tax Calculation Services
Manual and External Tax
Transactions in the Tax
Repository

Simulation
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

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Key Features
Withholding Tax

Centralize Tax Compliance

Tax Shared Service Center


Configure once, subscribe
Robust configuration lets
Payables users to focus on
transactional entry
Advanced tax configuration
features for complex regimes

Automatic

Rules to determine exact


withholding tax applicable to
each transaction line
Changes to transaction
information automatically
applies relevant taxes
Review taxes before invoice
validation

Global

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

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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

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Key Features

Withholding Tax Simple Configuration

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Key Features

Withholding Tax Simple Configuration

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Key Features

Withholding Tax Simple Configuration

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Key Features

Withholding Tax Simple Configuration

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Key Features

Withholding Tax Simple Configuration

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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

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Key Features

Withholding Tax Rule-based Configuration

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Key Features

Withholding Tax Rule-based Configuration

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Key Features
Thresholds

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

North Dakota

Tennessee
State Single Article Rate

Arizona
City Sales Taxes

Florida
Discretionary Sales Surtax

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

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Key Features
Tax Point Date

Requisitions,
Orders

Purchase
Receipts

Payments

Purchase
Invoices

Invoice
Accounting

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
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Key Features

Other Enhancements
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 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

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

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Key Features

Spreadsheets with full automation using Out-of the Box Web services
Rapid Implementation Spreadsheets

Transaction Workbooks

Common Shareable Configuration: Tax Configuration


Workbook

Taxable Transactions (ADFDi Online Spreadsheets)

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

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

Incremental configuration for changes to

Tax Rates

Tax Jurisdictions

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Key Features

Reporting and Analytics


Reporting & Analysis
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

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

Agenda
1

Configuration

Demo

Key Features

Implementation Experience

User Experience

Integration Experience

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Implementation Experience
Challenges
Tax legislations are Complex

Tax Rapid Implementation


Simple workbook to define common tax configuration

Time consuming to implement

3 Sheets,~7-20 attributes each, uses common lingo, in-built


validations and documentation

Constantly Changing

Partners can jumpstart tax implementation in minutes

Compliance risk on expansion

Download existing configuration: update, add for changes and


upload revised spreadsheet for changes to take effect

Tax Users are no Application experts

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

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
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Implementation Experience
Tax Content Library

China

Taiwan

United Kingdom

Germany

Finland

Belgium

Netherlands

Hungary

France

Austria

Ireland

Singapore

Canada
USA

Portugal

Denmark

Significant Predefined Tax


Content Countries

Poland

Slovakia

Limited Predefined Tax Content


Countries

Sweden

Italy

Spain

Czech

Documented Tax Setup Countries

Tax Content
delivered in
Rapid
Implementation
Spreadsheets
Jump start tax
implementation
in minutes

Luxemburg
Australia
New Zealand

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

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Agenda
1

Configuration

Demo

Key Features

Implementation Experience

User Experience

Integration Experience

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User Experience

Simplified Payables Invoice


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
5 2
1
3

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

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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

Analyze & Correct


OSN notifications to open tax simulator
through simulator UI or download
Diagnostic spreadsheet

4
Complete transactions with accurate tax
Submit invoice for validation
Silent Mode Option: Payables User can speed up
transaction entry with manual taxes

Update Setup, correct Transaction


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

Failed transactions submitted for Tax managers analysis


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User Experience

Get Social

Tax errors during invoice entry

2
Analyze & Correct

3
Update Setup,
correct transaction

4
Complete transactions with accurate tax
.

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Agenda
1

Configuration

Demo

Key Features

Implementation Experience

User Experience

Integration Experience

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Integration Experience

Centralized Tax Compliance

Challenge

Solution

o Effort, Cost with tax reporting


from multiple point, custom
solutions

o Lost opportunities in
optimizing overall tax costs

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

o Compliance and Audit risk

Benefits

o Overhead in maintaining tax


changes in different systems
requiring different structure

Significant Cost Savings


Enables Tax Shared Service Center

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Integration Experience

External Taxable Transactions

ERP Cloud

External Applications

eCommerce

Procurement

Tax
Configuration

Billing

Supply Chain
Management

Taxable
Transactions

Tax on Journals
External Journals
Direct tax adjustments

Tax Services

Tax
Repository

Subledger
Accounting

General
Ledger

Tax
Reporting

Centralized Tax
Compliance

Taxable Transactions
Sales and purchase transactions
Transactions with and without tax
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Integration Experience

External Taxable Transactions

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Resources

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

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Resources

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Resources

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