Documente Academic
Documente Profesional
Documente Cultură
Santosh Kumar
Oracle R12 Functional Consultant Email santosh@roverresources.com Phone 501 288 9089
Agenda
CLIENT US Operations CLIENT US Organizational Structure Key Tax Requirements How to Map Requirements into Solution? Available Options / TDFS Evaluation How to restrict Usage Tax applicability Options Proposed
CLIENT US Operations
CLIENT has 29 locations (located in 15 States) in the US and files State tax returns in 21 States In many locations, a customer may pick up the material at Clients location or it may be delivered to their office/warehouse. Multi Org Structure for US operations consists of a Ledger US Operations and 4 Operating Units
Distribution
Taxable Customers OU Ltd. (300) Plants Exempt Customers (as they do not remit Sales Tax) OU Inc. (400) OU Inc. (450) OU Inc. (550)
For all the above OUs US Location based tax is applicable and needs to be configured in the system.
The Tax Rules consists of Tax Determination Factors (TDFS) and Tax Condition Sets (TCS). If the conditions specified in the TDF Sets are met then EBTax will calculate Tax on Transactions (ex:- on Sales Orders (Estimated Tax) & AR Invoices (Actual Tax) A TDFS will be configured based on CLIENT s Requirements which would be chosen from the Oracle Pre-Defined Qualifiers NO CUSTOM QUALIFIERS ARE ALLOWED Any EBTAX Solution should revolve around the Pre-Defined Qualifiers as Tax Engine reads only them.
TDFS can be defined in E-Business Tax Based on the following four Pre-Defined Qualifiers:
Places Tax for CLIENT US operations should apply in 21 States Process O2C / P2P Transactions Ex:- Sales Orders, Invoices etc Product CLIENT has Product Specific Exemptions. Ex- Item Exemptions etc Parties CLIENT have any party specific Requirement
Proposed Solution
After careful evaluation the following applicable TDFS was considered to be proposed:
Tax Zones Document Subtype to specify a Transactions as Taxable or not? Product Category Buffer to be used for tax rule flexibility
Each will Transaction will carry a Value for Column Document Subtype TDF are not available in the Order Entry Hence estimated Tax will not apply on Sales Orders but
Condition1: If ship to state is one of the 21 states - solved Condition2: Is tax applicable for this OU customers ex:300 - yes else specific customer applicable - GCO Condition3: For non 300 OU specific customer evaluation ? check if customer site level taxable DFF value is "Y".
Cons Cannot use seeded Sales Tax Interface as this interface is always pointed to Global Config Owner - Refer SR # SR 3-4637207011 Custom Tax rate upload / updates - this method will be achieved by direct updates and inserts into Base Tables - Most of the Customer use this process too.
Thank You