E-Business Tax SIG Meeting. Sponsored by OAUG

Transcription

1 E-Business Tax SIG Meeting Sponsored by OAUG

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3 OAUG Updates OAUG Membership Orientation Contest Attend the Membership Orientation during COLLABORATE on Monday at 1:15 (session # 13109) OR Attend an online OAUG Orientation webinar by June 30 ( All Orientation attendees will be entered for a chance to win a $500 AmEx gift card! Games & Prizes at the RadiOAUG Membership Booth (Booth #1529) Complete a Geo/SIG survey for a chance to win one of TWO $100 AmEx gift cards. Play a round of Name That Tune for a chance to win a FREE conference pass to COLLABORATE 14 in Las Vegas! Stop by and take advantage of a special incentive to join the OAUG while at COLLABORATE

4 Agenda Board membership Issues identified during R12 upgrades R12 AP enhancement requests Fusion updates Issues identified during Fusion implementations ebtax enhancement requests Additional sessions Next steps and action items

5 Board Membership Position ebtax SIG Co-Chair ebtax SIG Co-Chair Education Chair Member at Large Web Page Membership Chair EU Region Chair APAC Region Chair Filled by Paul Kirch (Cognizant Technology Solutions) Alex Fiteni CPA Angie FauntLeRoy Santosh Kumar Vacant Kristin Gomez Andrew Bohnet NEW Vacant

6 Release 12

7 Oracle R12 Modules Financials HR & Payroll Supply Chain Projects General Ledger Human Resources (Core) Purchasing Project Foundation Accounts Receivables Advanced Benefits isupplier Project Billing Accounts Payable Advanced Compensation MRP/ASCP Project Costing Fixed Assets irecruitment Inventory Project Management Cash Management Self Service Costing Tax Management Learning Management Rewrite module completely in R12, port to Fusion Leave module as if for R12, rewrite in Fusion 7

8 Major Functional Changes introduced by Oracle in R12 Multi-Org Changes GL Mandatory Subledger Accounting (SLA) GL Optional eb Tax or Tax Management AP/AR Optional Advanced Payments Engine AP Mandatory Supplier Setup in Accounts Payables AP/PO Mandatory Bank Account in Cash Management CE/AP Mandatory Advanced Procurement Engine PO Optional Replacement of MRP with ASCP MRP Mandatory

9 The addition of Lines tab in the Invoice Workbench allows for more accurate tax evaluation and calculation. Manual tax required to be entered in a new Tax Details Window Tax Classification Code (old VAT Code) New Fiscal Classifications: Product Category Transaction Business Category Ship To Location

10 The new web-based Supplier records contain more detailed tax related information in two tabs

11 Issues identified after R12 Upgrades Issue The vendor setup for tax is confusing and often requires changes after an 11i/12 upgrade Tax support in iexpense only allows Tax Classification Codes and does not support a Place of Supply or any tax fiscal classifications that can be used in ebtax Tax support in Projects is limited to Tax Classification Codes and no support for Place of Supply or tax fiscal classifications AR Cash Receipts has limited support for ebtax No Accelerators: ebtax is not supported by isetup so configurations need to be re-entered in each new instance No way to identify whether a transaction is coming from a bonded or non bonded warehouse which is required for EU VAT Place of supply values are limited to Bill from, Bill to, Ship From, Ship to meaning that if your tax regime country is not one of these values, then the tax regime cannot be activated. Example is if Swedish company is selling to Finland but shipping from France and the shared OU and LE is in DE, no value = Finland so no FI VAT can be activated. Drop shipments in Europe the shipping entity does not hold the ship to address because the ship to address is owned by the selling entity OU. So the tax can only be calculated based on the bill to. If the ship to is outside of the EU but the bill to is to the EU then the wrong tax will be calculated Intercompany AP cannot support multiple ship to sites if the LE has multiple locations. i.e. DE LE has a site in DE and HU during the i/c how can we tell system that product was shipped to DE

12 R12 Enhancement Requests Recent: - Is NULL and Not NULL - Information provided by Oracle R12/Fusion Development.

13 Tips for Companies Upgrading to R12 Do not underestimate the importance of testing If a technical upgrade, multiple upgrade iterations should be used If a reimplementation, take the time to do a global design that makes use of the possibilities that R12 offers Understand that the lion s share of the work falls on the apps dba When planning, understand that a lift and shift, then transform approach works best. It is very difficult to upgrade and make process changes simultaneously

14 1. Use Your Rules 7. Classify your Master Data 2. Location, Location, Location 3. Answer all the questions 4. To eliminate or Report? 5. Begin with the Result in Mind 8. This is a ebtax not Accounting 9. Tax Codes are so yesterday! 10.Go Local, then Global then Local 6. Every Rule starts at the Beginning Copyright 2009 Alex Fiteni CMA, Fiteni International # 14

15 Upgrade Risk Management 1. Key Challenges 1. Data quality issues can affect tax results in Direct Rate Method 2. Tax Codes migrate unde the Regime to Rate structure can be hard to reconcile 3. PL/SQL tax calculation extensions not supported 4. Tax Groups may not upgrade 5. Operating Unit based tax calculations is limited 2. Transition to Regime Determination is a risk 1. Multiple Tax engines 1. Some 3 rd Party tax engines also have to be upgraded to newer versions 2. Latin tax Engine, China Golden tax still need to be supported 2. Data Quality 1. Customer and Supplier tax information to drives defaulting 2. All Tax is Location Based in R12 and relies on a more structur 3. Education users need to be educated on how the tax engine works and the often new tax naming convention

16 Key Risk - Upgrade Patches E-Business Tax (1087) Bug # Upgrade Implementation EBUSINESS TAX SEED DATA DOES NOT ALLOW FOR COMPOUNDING TAX (ENERGY TAX) EU specific issue ER to fix patch, set taxes to not enable taxes out of the box. ERROR: FROM EBUSINESS TAX - RETURN CODE = still active POST UPGRADE - 11I AR TAX GROUP CONDITION VALUES ARE MISSING IN EBUSINESS TAX UNABLE TO DISABLE PAYABLES EVENT CLASS 'STANDARD INVOICE' IN EBUSINESS TAX Seeded event class mapping fixed EBUSINESS TAX IS NOT ALLOWING CREATING MANUAL TAX LINE IN SPITE OF ALL THE SETUP

17 Key Risk - Upgrade Patches E-Business Tax (1087) Bug # Upgrade Implementation DATAFIX: TAX REGISTRATION NUMBER FAILED TO MIGRATE POST UPGRADE TO AR Tax Groups migrate only partially R INCOMPLETE MIGRATION OF AP TAX CODES/RATES INTO EBTAX x Data Fix Must be applied inr11i Users are now able to see the registration number defined in AR System Options n/a n/a R12 UPGRADE-EBTAX MIGRATION OF OUTPUT TAX CODES DID NOT COMPLETE SETUPS R12.0.x Must be applied in R11i n/a Incomplete Tax Hierarchy may migrate to R12 as Inactive Application Tax Options R12+ No Fix Must be fixed in R11i, no work around n/a During the upgrade, if a tax code existed in 11i Receivables and Payables with the same name, they are showing as duplicates in R pre-install mode 17

18 Best Practices Data Quality as a Critical Success Factor Clean up Addresses Tax Codes and Tax Groups Tax Automation as a driving objective Migrate to Regime to Rates & Rules Software Quality Assurance Preventive approach to patching take up the latest CPU and apply patches immediately Invest in in-depth R12 Upgrade Testing and Validation Design your solution in the way you want

19 Enhancement Requests ebtax Add Place of Supply Location as a Determining Factor Tax Accounts Defaulting during Accounting process Use LE owning transaction instead of OU Address in AP iexpense Use Location of expense rather than Employee Address Miscellaneous Receipts Support for full tax engine, not just Tax Classification/Codes Tax Rules Allow a Null Operator in Tax Condition Sets - PATCH Payables Tax Tolerances need to consider Compound Tax formula ABILITY TO USE DFF AS TAX DETERMINING FACTORS Quantity base tax rate not allowed more than one UOM A Final SHIP TO location needed in order to correctly calculate tax : NEED "SHIP TO" ADDRESS ON INTERCOMPANY AR INVOICE

20 FUSION

21 Fusion introduces the concept of pillars Financials Supply Chain Procurement CRM HR/Payroll Projects Manufacturing Services: Legal, Tax & Accounting

22 Financials HR & Payroll Supply Chain Projects General Ledger Human Resources (Core) Purchasing Project Foundation Accounts Receivables Advanced Benefits isupplier Project Billing Accounts Payable Advanced Compensation MRP/ASCP Project Costing Fixed Assets irecruitment Inventory Project Management Cash Management Self Service Costing Tax Management Learning Management Rewrite module completely using Fusion design patterns.

23 Major Functional Changes introduced by Oracle in Fusion User Interface Inclusion of new functionality Oracle Identity Management Presentation Layer Application Layer db

24 Fusion Updates (1 of 2) As of March 1, 2013, 20 companies had gone live with Oracle Fusion Applications, with the vast majority live using an HR Coexistence either on On premise or Hosted. With regards to Oracle Financials/ Supply Chain, a few early adopters of Fusion Financials Applications have gone live. They include: Professional Gold Association (PGA) Red Robin Gourmet Burgers First American Bank Financials Financials/ Supply Chain Purchasing/ Coexistence Roughly 200 companies have licensed Oracle Fusion Applications.

25 Fusion Updates (2 of 2) Fusion Applications are currently on RUP3. Release 5 GA in March/ April, 2013 Release 6 GA in June/July, 2013 Release 7 GA in September/ October, 2013 Release 8 GA end of the calendar year, 2013

26 Lessons Learned during Fusion Implementations

27 Issues in ebtax after Fusion Implementation Issue Information provided by Jay Foley, Program Manager at Red Robin.

28 Additional R12 ebtax Sessions Date Start End Time Session Time ID Session Details Product Line Track 04/07/2013 9:00 AM 12:00 PM ebtax in a Nutshell - A to Z of ebtax Architecture Applicable to All Financial Modules 04/10/2013 9:30 AM 10:30 AM How To Train Your ebtax Oracle E- Business Suite Financial Modules 04/10/2013 4:15 PM 5:15 PM Key Success Factors in Oracle E- Business Tax Implementations Oracle Data Mining Financial Modules 04/07/2013 2:30 PM 3:30 PM Implementing a global tax solution - case study from a large global implementation 04/08/2013 9:45 AM 10:45 AM Oracle Tax Management SIG Meeting 04/08/ :00 AM 12:00 PM13149 Enhancing Oracle E-Business Tax to meet Global Indirect Tax Complexities 04/08/2013 1:15 PM 2:15 PM Empowering Financials with Oracle E-Business Tax 12.1, the in-built tax engine. Oracle E- Financial Business Suite Modules Oracle E- Business Suite Oracle E- Financial Business Suite Modules Oracle E- Financial Business Suite Modules

29 Additional R12 ebtax Sessions Date Start Time End Time Session ID Session Details Product Line Track 04/08/2013 5:00 PM 6:00 PM A Survival Guide to the Payments and E-Business Tax Impact of the Release Payables Upgrade 04/08/2013 5:00 PM 6:00 PM R12 s Golden Tax for China Take 2 days out of Month End Close Oracle E- Financial Business Suite Modules Oracle E- Financial Business Suite Modules 04/09/ :45 AM 11:45 AM Implement Oracle E-Business Tax for VAT 04/10/2013 3:00 PM 4:00 PM The Nexus Nightmare and Best Practices for Using an External Sales Tax Package 04/08/2013 3:45 PM 4:45 PM IC - Procurement, Tax, and Sourcing Oracle E- Financial Business Suite Modules Oracle E- Financial Business Suite Modules Oracle E- Sourcing and Business Suite Procurement

30 Additional Sessions of Interest Implementing Oracle Fusion Applications at a Specialty Burger Store: Lessons Learned Presenters: Jay Foley and Paul Kirch Date: April 8, 2013 Time: 3:45 4:45 p.m. Place: Room 502 New Features and Functions in Oracle Accounts Payable Module Presenters: Paul Kirch and Parag Mehta Date: April 10, 2013 Time: 3:00 4:00 p.m. Place: Room 605

31 Questions? Comments?

32 THANK YOU Alex Fiteni, Paul Kirch Cell: Alex or Paul