oracle fusion tax
DESCRIPTION
Oracle Fusion TaxTRANSCRIPT
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Fusion Tax
Sreeni Devireddy Platform Technology Solutions Oracle Development
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Agenda
Configuration
Demo
Key Features
Implementation Experience
User Experience
Integration Experience
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Agenda
Configuration
Demo
Key Features
Implementation Experience
User Experience
Integration Experience
1
2
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5
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Regime
Tax
Tax Status Jurisdictions
Tax Rate
US Sales Tax Canadian Goods and Service Tax
Indian Excise and Customs
State Sales Tax County Sales Tax
City Sales Tax
Standard Reduced Exempt
Interstate
California Nevada
SFO Los Angeles
STD (5%) STD-USE (6%)
STD-RENTAL (7%)
Determine Tax Regimes
Determine Candidate Taxes
Determine Tax Applicability
Determine Place of Supply / Tax Jurisdictions
Determine Tax Registration
Determine Tax Status
Determine Tax Rate
Determine Taxable Basis
Calculate Taxes
Determine Recovery Rate
Basic Configuration
Advanced Configuration
Exemptions Exceptions
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Configuration Determining Factors
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Agenda
Configuration
Demo
Key Features
Implementation Experience
User Experience
Integration Experience
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Demo - Example
• State Tax – Jurisdiction : California – Tax Status : Standard – Tax Rate : 7.25%
– No Tax Rules
• 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
• Ship-To = SFO; Product Type = Null; Intended Use = Null – State Tax : 7.25%
• Ship-To = HQ; Product Type = Null; Intended Use = Null – State Tax : 7.25% – City Tax : 5%
• Ship-To = HQ; Product Type = Goods; Intended Use = Null – 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%
• US SUT Regime – Country : United States
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Agenda
Configuration
Demo
Key Features
Implementation Experience
User Experience
Integration Experience
1
2
3
4
5
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Agenda
Configuration
Demo
Key Features
Withholding Tax Thresholds Tax Point Date
1
2
3
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Key Features Summary
• Tax regulations globally supported by a single engine
• Centralized tax services across applications
• Data-driven engine
• Automatic tax calculation
• Manual overrides where authorized
Tax Engine
• 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
Simulation
• Tax partner integration infrastructure:
Tax Content
Tax Calculation Services
• Manual and External Tax Transactions in the Tax Repository
External Integration
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• Tax Shared Service Center
• Configure once, subscribe
• Robust configuration lets Payables users to focus on transactional entry
• Advanced tax configuration features for complex regimes
• Rules to determine exact withholding tax applicable to each transaction line
• Changes to transaction information automatically applies relevant taxes
• Review taxes before invoice validation
• 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
Key Features Withholding Tax
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Centralize Tax Compliance Automatic Global
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Key Features Withholding Tax – Simple Configuration
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• 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
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• 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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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
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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North Dakota
Florida Discretionary Sales Surtax
Arizona City Sales Taxes
Tennessee State Single Article Rate
Key Features Thresholds
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Key Features Tax Point Date
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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
Requisitions, Orders
Purchase Receipts
Invoice Accounting
Payments Purchase Invoices
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• 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 thresholds based on group of lines. Meet Florida Max Tax for specific product classifications
• Self Assess incremental tax, where supplier has applied incorrect rates
Key Features Other Enhancements
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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
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Rapid Implementation Spreadsheets Common Shareable Configuration: Tax Configuration
Workbook
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
Incremental configuration for changes to
Tax Rates
Tax Jurisdictions
Key Features Spreadsheets – with full automation using Out-of the Box Web services
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Transaction Workbooks Taxable Transactions (ADFDi Online Spreadsheets)
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
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• 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
Reporting & Analysis
Key Features Reporting and Analytics
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Agenda
Configuration
Demo
Key Features
Implementation Experience
User Experience
Integration Experience
1
2
3
4
5
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Challenges
• Tax legislations are Complex
• Time consuming to implement
• Constantly Changing
• Compliance risk on expansion
• Tax Users are no Application experts
Tax Rapid Implementation • Simple workbook to define common tax configuration
• 3 Sheets,~7-20 attributes each, uses common lingo, in-built validations and documentation
• Partners can jumpstart tax implementation in minutes
• Download existing configuration: update, add for changes and upload revised spreadsheet for changes to take effect
• 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
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Implementation Experience Tax Rapid Implementation 1
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
Netherlands Belgium
France
Portugal
Spain
United Kingdom
Denmark
Poland
Austria
Germany
Sweden Italy
Slovakia
USA
Canada
Czech
Finland
Hungary
Ireland
Luxemburg
China Taiwan Singapore
Australia
New Zealand
Significant Predefined Tax Content Countries
Limited Predefined Tax Content Countries
Documented Tax Setup Countries
Tax Content delivered in Rapid Implementation Spreadsheets
Jump start tax implementation in minutes
Reach out to Oracle Success Manager assigned to your customer account to get content
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Agenda
Configuration
Demo
Key Features
Implementation Experience
User Experience
Integration Experience
1
2
3
4
5
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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
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 Simplified Payables Invoice
1
2
3
4
5
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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 2
Analyze & Correct
OSN notifications to open tax simulator
through simulator UI or download Diagnostic spreadsheet
3
Update Setup, correct Transaction
Based on the information in diagnostic spreadsheet, Update Setup either using Tax Rapid Implementation Spreadsheets or through Setup UI’s
4
Complete transactions with accurate tax
Submit invoice for validation
. Silent Mode Option: Payables User can speed up transaction entry with manual taxes Failed transactions submitted for Tax manager’s analysis
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User Experience Get Social
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1
Tax errors during invoice entry
2
Analyze & Correct
3
Update Setup, correct transaction
4
Complete transactions with accurate tax
.
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Agenda
Configuration
Demo
Key Features
Implementation Experience
User Experience
Integration Experience
1
2
3
4
5
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Integration Experience
Challenge
o Effort, Cost with tax reporting from multiple point, custom solutions
o Overhead in maintaining tax changes in different systems – requiring different structure
o Lost opportunities in optimizing overall tax costs
o Compliance and Audit risk
Benefits
Solution
• 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
• Significant Cost Savings
• Enables Tax Shared Service Center
Centralized Tax Compliance
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Integration Experience External Taxable Transactions
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External Applications
eCommerce Billing
Procurement Supply Chain Management
Tax Configuration
Tax Repository Tax Services
Tax Reporting
Subledger Accounting
General Ledger
ERP Cloud
Taxable Transactions
Centralized Tax Compliance
External Journals
Direct tax adjustments
Tax on Journals
Sales and purchase transactions
Transactions with and without tax
Taxable Transactions
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Integration Experience External Taxable Transactions
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Resources
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https://cloud.oracle.com/saasreadiness/erp
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Resources
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Resources
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