R12 e-Business Tax engine - Global Tax Rules Made Easy

Norcal OAUG Training Day 2009, 21st Jan, 2009 Rajesh Padinjaremadam, ConzultZone Anthony Vendhan, Metron Consulting

Agenda ‡ ‡ ‡ ‡ ‡ ‡ About Us Objectives E-Business Tax Differences Between R11i and R12 R12 eBusiness Tax Configuration A Simplistic View Examples of R12 eBusiness Tax Configuration Key Learnings for R12 eBusiness Tax Configuration .

global organizations using Oracle Applications. implementation and development using Oracle Technologies. technical and organizational experience automating finance operations within multi billion dollar. He has deep functional.About Us ‡ Rajesh Padinjaremadam (ConzultZone) ± Rajesh is an experienced consulting manager and solution architect with expertise in enterprise-wide transformations enabled by Oracle Applications ERP. . Procure to Pay & Manufacturing processes for High-Tech and Solar industries. He has strong expertise in Order to Cash. ‡ Anthony Vendhan (Metron) ± Anthony has more than 12 years experience in business system design.

We have deep domain expertise in industries like High-Tech.About ConzultZone ± ConzultZone is a business transformation consulting firm designing and implementing solutions to address complex enterprise problems in the Supply Chain space ± Founded by a group of dynamic entrepreneurs with Big-Four consulting experience. Industry/Domain Expertise Broad Range of Services . helping clients of different sizes improve efficiency ± We offer a broad range of services and solutions in the enterprise arena. Pharmaceuticals and Solar Energy. spanning multiple technologies including Oracle Applications and SAP.

About Metron ± ± ± ± ± ± ± Metron Consulting Specializes in Oracle Applications Implementations SOA and Web Services Development Java & OA Framework Development OBIEE Development Web 2.0 Development using LAMP technologies Custom Reporting Solutions (Using Oracle tools and Open Source Technologies) .

Objectives ‡ Understand key differences between 11i and R12 tax ‡ Discuss configuration steps for R12 eBusiness tax ‡ Review key considerations during R12 tax implementation .

E-Business Tax Differences between R11i and R12 11i .Tax setups performed for individual modules ±e.Manage tax rules centrally and share across multiple Operating Units . Tax Codes for AP. Tax Codes for AR etc.g. and perform tax reporting .Powerful and flexible tax rules engine to write tax rules.Tax setups performed for multiple OUs R12 . .Configure tax rules centrally in eBusiness Tax modules and shared across multiple modules .

R12 Tax Configuration A Simplistic View A tax regime associates a common set of Tax Configuration default information.g 8. tax rules contain advanced tax calculation logic Tax rate for associated tax (E. and registrations Tax contains rates and rules used to calculate & report tax (E. fiscal classifications. regulations.05% for Arizona) .g. Arizona Tax) Tax rules link a Tax & a Tax Rate. Also.

Define party subscriptions . registrations etc.Setup Tax Regime Define regulations. exemptions.. exceptions etc. eg. Recovery.

Setup Tax Accounts related to this Tax .Setup Tax Setup AZ Tax to represent the tax legislation for AZ.

Setup Tax Rate Setup rate corresponding to the tax .

Setup Tax Rules Associate the tax rate to the tax .

Advanced Tax Rules Example Product Based exemption Setup Inventory Category based Fiscal Classification .

Advanced Tax Rules Example Product Based exemption Setup tax rule to exempt tax based on Item Category .

Advanced Tax Rules Example Product Based exemption Setup tax rule to exempt tax based on Item Category .

However. In the 11i world. careful analysis is required to ensure accurate implementation and prevent potential issues . In R12. Changing a tax rule for Payables can potentially impact tax calculation for Receivables as well) .R12 E-Business Tax Key Learnings .Plan for tax implementation early in the process.R12 eBusiness Tax is extremely powerful. it was easier to integrate later after the transaction module design has been completed. and hence needs to be planned in advance . tax design has a bigger impact on the overall design.Implementation requires more planning since the rules are centralized and have cross-functional impact (Eg.

Questions Please reach out to rajeshp@conzultzone. .com or avendhan@metronconsulting.com for questions/clarifications.

Thank You .

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