Sunday, January 21, 2018

eBTax - Oracle eBusiness Tax Configurations

This section will provide a brief overview of functionality in the new eBusiness Tax module.  It will also identify if R12 will provide any additional functionality to the user that may be of interest from both a financial audit and consulting perspective.

Additional/Changed R12 (Module) Functionality


·            Procure to Pay transactional taxes
·            Order to Cash transactional taxes
·            Sales and Use tax (location based taxes)
·            Tax reporting
·            Tax on General Ledger

·            Latin tax engine
·            Payables withholdings
·            Payables extended withholdings (Latin America)
·            Brazilian withholding tax calendar


Configuration Benchmarking

This section will contain details of the benchmark completed between the available functionality in R11 (11i) and R12 and will provide comment to help the reader understand any new configuration/settings (including Oracle Profile Options defined in the SA module) and whether this is relevant to XXAA from an audit and/or consulting perspective.  


Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Regime level
Country
Set up tax regimes in each country and geographical region where you do business and where a separate tax applies.
No
Country name
Predefined list
Enter Country Name
No
Tax regime code
Predefined list

No
Name
Predefined list

No

Tax configuration -> Tax regimes -> Group of countries

Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Regime level
Group of countries
Set up tax regimes in each country and geographical region where you do business and where a separate tax applies.
No
Tax Geography type
Predefined list

No
Tax Geography name
Predefined list

No
Tax regime code
Predefined list

No
Name
Predefined list

No


Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Regime level
Group of countries
Set up tax regimes in each country and geographical region where you do business and where a separate tax applies.
No
Tax Geography type
Predefined list

No
Tax Geography name
Predefined list

No
Tax regime code
Predefined list

No
Name
Predefined list

No


Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Regime level
Country
Set up tax regimes in each country and geographical region where you do business and where a separate tax applies.
No
Country name
Predefined list
Enter Country Name
No
Tax regime code
Predefined list
Enter Tax regime code
No
Tax
Predefined list

No
Name
Predefined list

No
Configuration owner
Predefined list

No


Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Regime level
Tax Zone
Set up tax regimes in each country and geographical region where you do business and where a separate tax applies.
No
Tax Geography type
Predefined list

No
Tax Geography name
Predefined list

No
Tax regime code
Predefined list
Enter Tax regime code
No
Tax
Predefined list

No
Name
Predefined list

No
Configuration owner
Predefined list

No




Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Regime level
Country
Set up tax regimes in each country and geographical region where you do business and where a separate tax applies.
No
Country name
Predefined list
Enter Country Name
No
Tax regime code
Predefined list

No
Tax status code
Predefined list

No
Name
Predefined list

No
Tax
Predefined list

No
Configuration owner
Predefined list

No


Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Regime level
Tax Zone
Set up tax regimes in each country and geographical region where you do business and where a separate tax applies.
No
Tax Geography type
Predefined list

No
Tax Geography name
Predefined list

No
Tax regime code
Predefined list

No
Name
Predefined list

No
Tax
Predefined list

No
Configuration owner
Predefined list

No


Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Tax jurisdiction code
Predefined list

No
Tax jurisdiction name
Predefined list

No


Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Regime level
Country
Set up tax regimes in each country and geographical region where you do business and where a separate tax applies.
No
Country name
Predefined list
Enter Country Name
No
Tax regime code
Predefined list

No




Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Regime level
Tax zone
Set up tax regimes in each country and geographical region where you do business and where a separate tax applies.
No
Tax regime code
Predefined list

No
Tax Geography type
Predefined list

No
Tax Geography name
Predefined list

No


Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Regime level
Country
Set up tax regimes in each country and geographical region where you do business and where a separate tax applies.
No
Country name
Predefined list
Enter Country Name
No
Tax regime code
Predefined list

No
Tax rate code
Predefined list

No
Tax
Predefined list

No
Tax jurisdiction code
Predefined list

No
Configuration owner
Predefined list

No



Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Regime level
Tax zone
Set up tax regimes in each country and geographical region where you do business and where a separate tax applies.
No
Tax Geography type
Predefined list

No
Tax Geography name
Predefined list

No
Tax regime code
Predefined list

No
Tax rate code
Predefined list

No
Tax
Predefined list

No
Tax Jurisdiction code
Predefined list

No
Configuration owner
Predefined list

No


Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Configuration owner
Predefined list

No
Tax regime code
Predefined list

No
Tax
Predefined list

No
Rule type
Predefined list

No


Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Fiscal classification type code
Predefined list

No
Name
Predefined list

No
Fiscal classification type group
Predefined list

No
Product classification source
All, Oracle E-Business Tax, Oracle Inventory

No


Setting
Available Options
In R11?
If new for R12, what is it?
Relevant
Final classification code
Predefined list

No
Name
Predefined list

No
  

Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Final classification code
Predefined list

No
Configuration owner
Predefined list

No
Tax
Predefined list

No
Exception item
Item, Product fiscal classification

No
Inventory organisation
Predefined list

No
Item
Predefined list

No
Tax jurisdiction code
Predefined list

No


Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Party type
First parent legal entity, First party legal entity establishment, Operating unit owning tax content, Tax authority, Third party, Third party site.

No
Party name
Predefined list

No
Party site name
Predefined list

No
Address
User defined

No
Country name
Predefined list
Enter Country Name
No


Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Fiscal classification type code
Predefined list

No
Name
Predefined list

No
Fiscal Classification type group
Predefined list

No


Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Fiscal classification type code
Predefined list


No
Name
Predefined list

No
Fiscal Classification type group
Predefined list

No


Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Transaction business category code
Predefined list

No
Name
Predefined list

No
Country name
Predefined list
Enter Country Name
No


Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Fiscal classification type code
Predefined list

No
Name
Predefined list

No
Fiscal classification type group
Predefined list

No




Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Application name
Predefined list

No
Event class
Predefined list

No


Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Country name
Predefined list
Enter Country Name
No


Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Country name
Predefined list
Enter Country Name
No


Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Configuration owner
Predefined list

No
Application name
Predefined list

No
Event class
Predefined list

No




Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Operating unit
Predefined list

No
Application name
Internet expenses, Payables, Projects, Purchasing, Receivables

No


Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Name
User defined

No
Code
User defined

No
Application name
Predefined list

No
Access
None, Extensible, System, User

No



Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Tax determining factor sets
Predefined list

No
Name
Predefined list

No


Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Tax condition set
Predefined list

No
Name
Predefined list

No




Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Configuration owner
Predefined list

No
Tax formula code
Predefined list

No
Name
Predefined list

No
Regime code
Predefined list

No
Tax
Predefined list

No


Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Country
Predefined list

No
Province
Predefined list

No
City
User defined

No
Postal code
User defined

No
Zone creation allowed
Enabled, Disabled

No




Tax regime code
Available Options
In R11?
If new for R12, what is it?
Relevant
Determining factor class
Predefined list

No
Determining factor name
Predefined list

No
Determining Factor usage
Taxable basis formula, Tax regime determination, Tax rules

No

New for R12
Profile Option Name
Description
Relevant
eBTax: Allow Override of Tax Recovery Rate
The profile option allows the override of assigned tax recovery rates, if enabled.
A & C
eBTax: Read/Write Access to GCO Data


eBTax: Allow Ad Hoc Tax Changes
The profile option allows the update of tax rates and tax amounts for ad hoc tax codes, if enabled.
A & C
eBTax: Allow Manual Tax Lines
The profile option allows tax lines to be entered manually, if enabled.
A & C
eBTax: Allow Override of Customer Exemptions
The profile allows the override of customer exemptions, if enabled.
A & C
eBTax: Allow Override of Tax Classification Code
The profile option allows the override of assigned tax classification codes, if enabled
A & C
eBTax Vertex: Case Sensitive
Use Case Sensitive search with Vertex TRM information
A & C
eBTax Taxware: Service Indicator
Type of service provided (Service, Rental, Non-Service)
A & C
eBTax Taxware: Tax Selection
Taxware's tax engine operation mode
A & C
eBTax Taxware: Use Nexpro
Use Nexpro Indicator(Y or N)
A & C
Note: A = Audit Relevant,  C = Consulting Relevant

Removed in R12 – Not applicable as the eBusiness Tax is a new module


This section defines the relevant standard reports which are available in R12 and provides comment to help the reader understand what the report will show the Oracle User and why it is relevant to our audit/consulting work.

The following parameters are common to most eBusiness Tax reports, and should be configured when generating reports:

If Multi-Org Access Control (MOAC) is being utilised, the level at which you want to execute the report needs to be specified. The report can be executed at the following levels:
·            Legal entity – The report runs for a selected legal entity within your security profile. The report extracts transactions that display this legal at the header level;
·            Ledger – The report runs for the legal entity and operating within a ledger that the user has access to; and
·            Operating unit – The report runs for a selected operating unit within your security profile.

The eBusiness Tax selects and prints information for the transactions with the accounting status that the user specifies. The report can be executed for the following statuses:
·            Accounted;
·            Both accounted and unaccounted; and
·            Unaccounted.

eBusiness Tax report will only display transactions processed in the currency that has been selected by the user.

The General Ledger transaction date range to be included in the report is configured by the user. The eBusiness Tax reports print all transactions based on the General Ledger date range selected. The default low and high values for the General Ledger transaction date is the beginning and end of the most recent accounting period.

The transaction date range for the period of review. The transaction date for each transaction class is as follows:
·            Invoices, credit memos, debit memos and adjustments-  the date of the transaction;
·            Discounts and receipt applications- the date of the associated cash receipt
·            Miscellaneous cash transactions- the date of the receipt.

New Reports for R12
Report Name
Description
Relevant
Customers with invoices at 0 VAT and no VAT registration number
The report is used as part of the VAT reconciliation report set to display all customers within the European community that have not paid VAT and have not provided a VAT registration number to exempt that party from VAT.
A & C
Financial tax register
The report is used to view the output from the Tax reporting ledger. The tax reporting ledger consists of accounting information created in Oracle Receivables, Oracle Payables and Oracle General Ledger.
A & C
Intra-EU audit trail report
The report is used to review the invoice and tax information for Intra-EU invoices. Inter-EU invoices are invoices received from suppliers located in European Union member states other than the member state in which the organisation is located. The organisation is not required to pay VAT on intra-EU invoices, however records are required to be maintained and reported on the invoices.
A & C
Tax received report
The report is used to review the amount of taxes you received for each taxable debit item. The report automatically sorts by tax rate code and allows the user to view how much tax has been received for the specified General Ledger date range.
A & C
Tax reconciliation report
The report is used to prepare the output tax portion of your periodic tax returns. This report lists the taxable and tax amounts, by tax account, of all receivables transactions for a given period. This report allows the user to review the tax liability for various tax rate codes.

The report provides the Receivables tax detail, which assists the reconciliation to the General Ledger.
A & C
Tax reconciliation by taxable account report
The report is used to report on taxable transactions in Payables, Receivables and General Ledger. The report fulfils legal reporting obligations for tax returns and tax audits for VAT accounting.
A & C
Tax register report
The report allows the user to review the Tax liability. The report group's total tax amounts by tax type, tax class and company.
A & C
Tax audit trail report
The report identifies tax information for posted or partially posted invoices. The report provides detailed information for each tax rate code in the invoice currency and functional currency.
A & C
Tax-only open invoices report
The report is used to review invoices where all amounts have been paid or credited except the tax amount. These are invoices where the tax amount may be in dispute. The report is usually utilised to highlight potential problems.
A & C
VAT exception report
The report is utilised as part of the VAT reconciliation to identify Receivable subledger transactions that meet one of the following VAT exception criteria:
·            The transaction line does not have an accompanying tax line;
·            The transaction has line items that references GL tax accounts;
·            The transaction is a discount that references GL tax accounts;
·            The transaction is an adjustment that references GL Tax accounts;
·            The transaction is a miscellaneous receipt that references GL tax accounts;
·            The transaction is a miscellaneous receipt which has not tax rate code;
·            The transaction is an adjustment of type tax.
A & C
Note: A = Audit Relevant,  C = Consulting Relevant

New Programs for R12

Report Name
Description
Relevant
eBusiness Tax transaction upgrade on demand
The program upgrades transactions from 11i to R12 that were not included in the downtime upgrade process.

The “Upgrade Historical Subledger Transactions” program to perform the upgrade process. / This program internally calls the “eBusiness Tax Transaction Upgrade on Demand” program.
A & C
Tax partner services plug-in
The program is used to insert a registered tax service provider providing services into the execution flow of eBusiness Tax, without manually changing eBusiness Tax programs.
C
Note: A = Audit Relevant,  C = Consulting Relevant


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