Getting Started with E-Business Tax

Functional Overview and Strategies for Adoption

NOOAUG Quarterly Meeting

December 2013
Barbara Derks, Financial Solutions Architect
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 Agenda

<Insert Picture Here>

E-Business Tax Overview

What is eBusiness Tax?
Features and Benefits
Integration with EBS Modules
Partner Integration
E-Business Tax Adoption Scenarios
Additional Resources

3 Copyright Oracle Corporation, 2006. All rights reserved.

 Agenda

<Insert Picture Here>

E-Business Tax Overview

What is eBusiness Tax?
Features and Benefits
Integration with EBS Modules
Partner Integration
E-Business Tax Adoption Scenarios
Additional Resources

4 Copyright Oracle Corporation, 2006. All rights reserved.

 What is E-Business Tax?
Manage Global Tax Challenge

Centralized Global Tax Engine Within An ERP

Rules-Based Global Tax Engine

Centralized controls

Common Configuration For Sharing Setups

Integration with Major Tax Vendors in US

Seeded Setup Libraries

Tax Simulator

Fully Supported Upgrade

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 eBusiness Tax Rule Engine

Inventory Receivables Projects

Purchasing Payables

4Ps Party
Determining Place Tax
Product Values
Factors
Process

Place of Applicability Status

Tax & Registration Taxable Tax Recovery
Supply / &
Regimes Basis Calculation Rate
Taxation Rates

Internal Use Only

 How Are Taxes Defined?

Operating
Unit Tax
Accounts

Tax Tax Tax Tax Recovery

Tax
Regime Jurisdiction Status Rate Rate

US Sales and State Sales Tax CA State Sales Standard 7.25% 0%

Use Tax

US Sales and State Sales Tax PA State Sales Standard 6.0% 0%

Use Tax

Flow

Optional Flow
Note: The above data examples were introduced just to illustrate the business flow and do not represent the complete tax setup for the country

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 Tax Manager Home Page

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 Regime to Rate Flow

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 Sample Tax Rule

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 E-Business Tax
Seeded Data (CLIC) To Tackle Global Tax Challenge
Seeded Content

Configuration Library of Implementation Content (CLIC)

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 E-Business Tax
Advance Tax Capabilities To Tackle Global Tax Challenge

Tax Simulator

Powerful user interface tool to simulate Tax Calculation, based on what-if scenarios.

Gives flexibility to test new and / or changed tax rules.

Can assist in auditing Tax Rules and confirm if a particular tax is being applied appropriately.

Provides quick way to simulate transactions with fewer validations for what-if scenarios

Please Note: It emulates transactions, but does not trigger actual transactions

12 Copyright 2013, Oracle and/or its affiliates. All rights reserved.

 E-Business Tax
Advance Tax Capabilities To Tackle Global Tax Challenge

Tax Simulator

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 E-Business Tax
Tax Reporting

Centralized Tax Reporting

BI Publisher

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 Agenda

<Insert Picture Here>

E-Business Tax Overview

What is eBusiness Tax?
Features and Benefits
Integration with EBS Modules
Partner Integration
E-Business Tax Adoption Scenarios
Additional Resources

15 Copyright Oracle Corporation, 2006. All rights reserved.

 Where Can EB Tax Be Used?

Procure to Pay Oracle Purchasing

Oracle Internet Procurement
Consigned Inventory
Oracle Internet Expenses
Oracle Payables
Order to Cash Oracle Order Capture/iStore/Quoting
Oracle Order Management
Oracle Trade Management
Oracle Services Contracts
Oracle Project Accounting
Oracle Receivables
Inter-company Invoicing Oracle Inter-company Invoicing
General Ledger Oracle General Ledger

16 Copyright Oracle Corporation, 2006. All rights reserved.

 Where is EB Tax Not Used?

Functionality not migrated to Oracle E-Business Tax:

Latin Tax Engine
Payables Withholdings
Payables Extended Withholdings (Latin America)
Brazilian Withholding Tax Calendar

Functionality not available in Oracle E-Business Tax:

Payroll Taxes (Oracle Payroll)
Property Taxes (Oracle Assets)

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 What About Localizations?

Separate Tax engine

India Localization

Latin America Localization

Extend E-Business Tax

China Golden Tax Adaptor

EMEA Localizations

Asia Localizations

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 R11i Functionality in Release 12.1+

Setup is centralized in E-Business Tax application

Two new responsibilities to access E-Business Tax:
Tax Manager
Tax Administrator
11i Tax Codes have become Tax Classification Codes
System options Payables Options Financial Options
have been centralized to Defaults & Controls
Tax groups have been replaced by Tax Rules

19
 E-Business Tax
Commitment To Existing Customers

Supported upgrade From 11i to Release 12.1

20 Copyright 2013, Oracle and/or its affiliates. All rights reserved.

Agenda

<Insert Picture Here>

E-Business Tax Overview

What is eBusiness Tax?
Features and Benefits
Integration with EBS Modules
Partner Integration
E-Business Tax Adoption Scenarios
Additional Resources

21
 E-Business Tax Release 12.1
Validated Integrations : Additional Flexibility For Oracles Customers

Validated Sales & Use Tax Partner Solutions (Only For US)

Vertex
ADP
CCH
Sabrix (Thomson Reuters)

For more information on Oracle Validated Integrations from these partners and others please visit:
oracle.com/partners/goto/validate

22 Copyright 2013, Oracle and/or its affiliates. All rights reserved.

 E-Business Tax
Partner Integration Scenarios

Partner Integration
Seamless and flexible integration using subscription model

US Sales Tax & Global Taxes, including VAT, calculated by E-Business Tax with
User defined tax rates

US Sales Tax Calculated by E-Business Tax with rates provided by Oracle validated
tax partners

US Sales tax calculated by Oracle Validated Partner Tax Solution

23 Copyright 2013, Oracle and/or its affiliates. All rights reserved.

 Oracle eBusiness Tax
Partner Integration Overview
eBusiness Suite
Transaction Data Transaction Tax Data
Oracle eBusiness Tax
Tax Services Request Manager

Content Services
Repository
Tax Tax Tax
Content Determination Administration
Services Services Services
Record
Repository
Partner Partner
Tax Content Tax Services
Interface Interface

Tax Partner
Partner
Tax Content Tax Services
Integration

24 Copyright Oracle Corporation, 2006. All rights reserved.

 E-Business Tax Partner Integration Scenarios
Understanding Key Concepts

How are customers typically using Partner Integration?

US Scenarios

Simple rules, few jurisdictions

Use EB Tax for content and services (no partner)
Simple rules, many jurisdictions, many rate changes
Use Partner for tax content (rates)
Complex rules, insufficient manpower / expertise to maintain
Use Partner for tax content and services with EB Tax
Structure

Outside US Scenario
Simple rules, few jurisdictions
Use EB Tax for content and services (no partner)

25 Copyright Oracle Corporation, 2006. All rights reserved.

 Agenda

<Insert Picture Here>

E-Business Tax Overview

What is eBusiness Tax?
Features and Benefits
Integration with EBS Modules
Partner Integration
E-Business Tax Adoption Scenarios
Additional Resources

26 Copyright Oracle Corporation, 2006. All rights reserved.

 Upgrade Versus Fresh Implementation
Stages Of Implementation From 11i To R12

Upgrade
Standard migration from Release 11i to Release 12
Migration requires no manual effort, completely automated
11i tax functionality supported out of the box

Upgrade + New Features

Minimum setup changes
Allows enhanced E-BTax functionality (moving to fresh
implementation)
Can be tailored based on business needs

Fresh Implementation
Fully utilizing E-BTax functionality and features

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 Tax Calculation Methods
Rule Based (Available for Upgrade or Fresh Implementation)

Single Interface for Transactions

Purchasing Parties
Places Determine Applicable Tax Status Taxable Calculate
& Tax
Product Regimes Taxes Basis
Payables Rate Amount
Process

Sales Orders Transparent Integration with Tax Partner Services

Receivables
Taxes,
Rules

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 Tax Calculation Methods
Direct Rate Determination (Upgrade only)

Parties
Single Interface for Transactions
Purchasing Places
Determine Applicable Tax Status
Tax Regimes Taxes & Rate Taxable Calculate
Classification Basis Tax
Payables Code Direct Rate Determination Amount

Product
Transparent Integration with Tax Partner Services
Sales Orders
Process

Receivables
Taxes,
Rules

2009 Oracle Corporation Proprietary and Confidential

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Agenda

<Insert Picture Here>

E-Business Tax Overview

What is eBusiness Tax?
Features and Benefits
Integration with EBS Modules
Partner Integration
E-Business Tax Adoption Scenarios
Additional Resources

30
Pre-defined Setups
Doc ID 463001.1

31 Copyright 2013, Oracle and/or its affiliates. All rights reserved.

 E-Business Tax
Upload Capabilitities

Upload User Tax Content

Ability to upload Custom Tax Rates and Geography File For US

Doc ID 1072665.1

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 For More Information
E-Business Tax Community
https://communities.oracle.com/portal/server.pt/community/e-business_tax/232

2009 Oracle Corporation Proprietary and Confidential

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 For More Information
Tax Partners:
Oracle E-Business Tax: Vertex Q-Series and Taxware Sales / Use
Tax System Implementation Guide - Release 12
Note 761438.1, Using Vertex Q Series and Troubleshooting the
Integration with R12 eBTax.
Note 806575.1, Using Taxware and Troubleshooting the Integration
with R12 eBTax
http://www.oracle.com/us/partnerships/solutions/index.html#currentval

Localizations:
Note 811483.1, Oracle Golden Tax Adaptor for Mainland China
Release Notes, Release 12.1.1
Note 784692.1, Troubleshooting Latin America Tax Release 12 Tax
Calculation Issues
Note 472055.1, India Localization uptake of E-Business Tax in R12

2009 Oracle Corporation Proprietary and Confidential

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 For More Information
Upgrade:
Oracle Financials and Oracle Procurement Functional Upgrade
Guide: Release 11i to Release 12
Note 810443.1, Overview of the E-Business Tax R12 Upgrade for
Order to Cash (Important Pre-Upgrade Patches to Consider)
Note 1062897.1, Case Study: How to Switch From an Upgraded
Tax Regime to a New Tax Regime - Canada HST example
Note 256.1, Upgrade Advisor: Oracle E-Business Suite Financials
Upgrade from 11.5.10.2 to 12.1.2

Tax Reporting:
Oracle E-Business Tax Reporting Guide
Note 737320.1, Troubleshooting R12 E-Business Tax (EBTax)
Reporting Issues

2009 Oracle Corporation Proprietary and Confidential

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 For More Information
Note 1117544.1 E-Business Tax (EBTax) Information Center
Note 735991.1, Implementing and Using Tax Recovery in
Release 12 E-Business Tax
Note 885225.1, White Paper on Setting Up Tax Accounting
Note 554492.1, White Paper on Setting Up Geography
Hierarchy And Address Validation in Release 12
Note 1072665.1, How to Load a custom rate file in R12 E-
Business Tax
Note 780989.1, R12: Upgrade Versus Reimplementation
(Financials)
Note 463001.1, E-Business Tax Seed Data
Note 215.1, E-Business Tax News
Note 216.1, E-Business Tax News Archived Issues

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 QUESTIONS
ANSWERS

The above reflects Oracles current development plans which are subject to change at any time