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Vertex and Oracle Cloud

Posted on October 13th, 2017 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Oracle ERP Cloud Transaction Tax Automation is consist of Comprehensive Tax Partner Offerings

  • Robust infrastructure for tax partner solutions
    • Tax Content and Tax Reporting services providing fast ROI option for mid-market companies adopting Oracle ERP Cloud
    • Integrated Cloud-to-Cloud tax calculation services for enterprise grade companies
  • Infrastructure has been optimized for ERP Cloud customers using end-to-end Vertex transaction tax offerings, lending value in fulfilling the compliance function

Let see some key features and automation Flow.

Tax Content Offering

The Vertex tax content service covers geographies, tax jurisdictions, and tax rates.

This service supports address validation for master location data, and provides tax jurisdictions and tax rates data for US locations all updated on a monthly basis to comply with
statute changes.

In addition, users may opt for taxability rules content, which adds product and service taxability taxability rates and customer-specific product and service tax rules also updated on a monthly basis.

Tax Calculation Offering

  • "Cloud-to-Cloud" integration of ERP Cloud and Vertex O Series Cloud for transaction tax calculation
  • No software integration components deployed on Cloud
  • Seamless data flow between Oracle ERP Cloud and Vertex O Series

Tax Reporting Offering

  • Vertex Indirect Tax Returns - Signature-ready returns for U.S. sales and use taxes are produced for filing
  • Vertex Returns Outsourcing Service - Vertex can manage the entire tax compliance function from tax returns generation to payment remittances

    Here is how end-to-endTransaction Tax Solution usually Flow

tax

Fig1 :Vertex End-to-End Tax Solution Automation

 

The Vertex solution architecture enables “cloud-to-cloud,” touchless integration of Oracle ERP Cloud and Vertex Cloud.

Enjoy efficient, user-friendly uptake and integration, with no need to host any software or integration components on premise.

There is no need to apply patches, service releases, or monthly data updates Vertex takes care of these for you.

Leverage the benefits of powerful tax automation as below:

  • Real-time transactions and batch processes for tax functionality
  • Tax-sensitized receivables and payables invoices
  • A streamlined process with accurate tax outcomes
  • Secure, cloud-hosted journal retention for tax return compliance

Posted in Oracle E-Business Tax | No Comments »

Golden Tax Adaptor for Mainland China : Invoices for VAT in China

Posted on January 24th, 2013 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Do you know, laws in the People’s Republic of China require the use of a government certified tax software called ‘Golden Tax’ for VAT calculation, statutory tax reporting and generating and printing VAT invoices.

Golden Tax is an integrated nationwide value-added tax (VAT) monitoring system in China.

Golden Tax Adaptor enables Oracle’s customers in China to interface their invoices, credit memos and debit memos from Oracle Receivables/Oracle Fusion Receivables to the Aisino Golden tax software in order to calculate VAT, generate and print VAT invoices and report tax to the Chinese Tax authorities.

The user can use discrepancy and mapping reports to audit and reconcile the discrepancies in data between Receivables invoices and Aisino generated VAT invoices.

In China, VAT invoices are generated only for VAT, and not other types of tax that may appear on receivables transaction lines. Tax types identify the applicable VAT tax for each line of a VAT invoice for a given legal reporting unit.

You can use these tax types or create your own, according to your tax requirements. Different tax types are:

  • VAT: VAT for goods or services
  • VAT-GOODS: VAT for goods only
  • VAT-SERVICES: VAT for services only

This support for additional VAT invoice types - Special VAT invoices, common VAT invoices and special VAT Invoices of Waste and Outdated Materials .

The key steps in the Golden Tax process are:

  • Create or import transactions in Receivables.
  • Transfer receivables transactions to the Golden Tax Adaptor as Golden Tax transactions.
  • Modify the Golden Tax transactions to conform to the requirements of VAT invoices for China.
  • Generate a flat file of VAT invoice data for import into the Aisino Golden Tax System.

After the Aisino Golden Tax System generates VAT invoices from the Golden Tax Adaptor data:

  • Import VAT invoice data from the Aisino Golden Tax System.
  • Review and compare the imported VAT invoice data with the flat file exported to the Aisino Golden Tax System.
  • Correct any discrepancies between the two data files.

Further Reading. Goldan Tax

Posted in Localizations, Oracle E-Business Tax | No Comments »

Why you need Third Party Integration for Tax System

Posted on December 28th, 2012 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Third-party tax solutions provide a more complex set of features for sales and use tax calculations than ERP's like Oracle (EBS, Peoplesoft), SAP based tables. The need for Third Party integration is always demanding if Companies are operating in Noth America.

The need for Third Party Integration for Tax System is ..

  • To get out of the box tax content
  • To avoid continuously monitoring tax law changes
  • Automated tax content updates
  • Better audit support
  • Single solution for Oracle and non Oracle systems
  • Meet local reporting needs
  • Access to tax research of the provider
  • Get out of the box return / support for major countries

While Using so , you can get these benefits

  1. Reduced overall cost of tax compliance
  2. Improved efficiency of transactions
  3. Greater Business Insight
  4. Improved footprint of taxable transactions
  5. Reduced risk associated with manual intervention

Next most vital steps in a successful sales tax system implementation is choosing the right software solution. Every business is unique and has an array of different requirements. Once the requirements have been identified and the type of solution is identified for a tax system implementation, the next step is to research the providers that offer that type of solution.Every software package offers a different set of possibilities. It’s important that the project team is aware of all the benefits and functionality of the different software packages before making the final selection.

Few Third Party Options for Tax Integration Technologies

  • ADP owns Taxware and offers the Sales/Use Tax (SUT) and Taxware Enterprise (TWE) applications.
  • Avalara is privately owned and offers the AvaTax Connect as a web-hosted solution for small-to-medium businesses.
  • Thomson Reuters owns Sabrix, which has been re-branded and integrated as part of OneSource.
  • Vertex remains privately owned and offers the Q-Series and O-Series applications.
  • Wolters Kluwer owns CCH, which offers the Sales Tax Office (STO) solution, and they recently acquired SpeedTax.

I look forward to learing about your implementation experiences!

Posted in Oracle E-Business Tax | No Comments »

Solutions for Oracle Release 12 and E-Business Tax

Posted on October 12th, 2012 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

With Release 12, Oracle introduced a new tax framework called E-Business Tax .

The new tax module includes the capability of integrating with 3rd party tax applications, such as Vertex O Series, for an even greater level of tax compliance and efficiency. Vertex is the only tax solution provider selected as Oracle's testing partner for E-Business Tax.

Vertex Sales Tax O Series Link for Oracle Integrates with the following Oracle modules:[ Adopted from Vertex Documentation]

  • Order Management
    • Estimation of Sales Tax on Standard Sales Orders (real time calculation)
  • Accounts Receivables
    • Calculation of Sales Tax on Standard AR Invoices
    • Credit memos/Debit memos & Adjustments
    • Recurring invoices
    • Manual invoices
  • iReceivables (credit memo requests)
  • Service & Project Billing (via AutoInvoice to AR)
  • CRM (iStore and Quoting via Order Capture)

Vertex Consumer Use Tax O Series Link for Oracle Integrates with the following Oracle modules:

  • Payables
    • Verify vendors charged sales tax or self-accrue use tax
  • Purchasing
    • Estimate sales tax on POs, and update committed spend in Projects
  • Inventory
    • Self-accrue use tax on material transaction movements

Vertex Oracle1

 

Features and Functionality of the Vertex Tax Links for Oracle:

  • Provides real-time response and batch-mode processing options
  • Provides a Client Extension for customer specific tax element sourcing rules
  • Enhances address validation functionality in Oracle E-Business Suite
  • Includes configuration forms to control tax settings at an Oracle operating unit level, as well as specific jurisdiction levels
  • Updates the Vertex Journal to record use tax, and synchronizes Oracle and Vertex

The final result is an integrated solution allowing to focus on adding value to their business through increased flexibility to manage day-to-day as well as more strategic tax related business issues.

Posted in Oracle E-Business Tax | No Comments »

Vertex O Series Integration with Oracle Applications & SAP

Posted on September 28th, 2012 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Vertex O Series identifying the dynamics that are occurring in your company and those that match up with the capabilities of the Vertex O Series system is the key to planning the most efficient and effective strategy for implementing an automated tax compliance solution

Consider the following factors and trends that may be taking place within your company:

  • Management of consumer use tax is becoming a high priority within the tax department.
  • Company growth has resulted in expanded international operations and value added tax is no longer manageable as a manual effort.
  • Evaluations of the current ERP implementations are occurring and upgrades to newer versions are in the planning stages.
  • Merging operations of acquisitions to a centrally managed structure is on the planning horizon.
  • A new business initiative such as a new on-line storefront or purchasing system will be implemented with web technologies.
  • Transactional tax management for multiple divisions will be centralized in a single corporate tax department.
  • The IT department has begun a strategy of adopting Web Services technologies for interoperability among applications.
  • The IT department has initiated a strategy to reduce maintenance costs across the organization by limiting application support on client stations.

dgreybarrow VERTEX O SERIES FOR ORACLE EBUSINESS SUIT

For companies with Oracle E-Business Suite Applications both 11i and R12 .

Vertex offers Vertex Tax Links for Oracle, an interface developed using Oracle standards and guidelines that ensures every financial process with a tax consequence administered through Oracle and Vertex O Series will be accurately calculated and reported.

As Oracleis preferred tax solution vendor, Vertex O Series for Oracle goes far beyond the capabilities of native Oracle and simplifies tax management by delivering advanced transaction tax capabilities. Below is Tax links for EBS Integration Possiblity.

Vertex Oracle1

 

dgreybarrowVERTEX O SERIES FOR JD Edwards EnterpriseOne

The integration requires changes to some of EnterpriseOne's business functions; therefore a design and deployment strategy for the integration will need to be developed for each O Series opportunity.

The integration currently interfaces to the following modules:

  • Sales Order Management
  • Contract Billing
  • Service Billing
  • Accounts Receivable
  • Procurement
  • Accounts Payables

dgreybarrowVERTEX O SERIES FOR PeopleSoft Enterprise

PeopleSoft supports the integration with Vertex O Series as a web-services integration.

PeopleSoft applications communicate with these web services through the PeopleSoft Integration Broker. The Integration Broker uses the URL of the web service to conduct transactions with these tax solutions.

A streamlined connection method is available for Vertex O Series.

PeopleSoft Billing, PeopleSoft Order Management, and PeopleSoft Purchasing interact with Vertex O Series for the following:

  • Geocode lookup (Tax Area Identification)
  • Online tax calculation in PeopleSoft Order Management, PeopleSoft Billing, and PeopleSoft Purchasing
  • Order completion processing (batch processing in PeopleSoft Order Management).
  • Invoicing (batch processing in PeopleSoft Billing).
  • Procurement card processing (batch processing in PeopleSoft Purchasing).

dgreybarrowSAP INTERFACE COMPONENT FOR VERTEX O SERIES

Companies that utilize SAP as their enterprise software will realize the benefits of the ongoing Vertex/SAP partnership and joint development effort resulting in the SAP Interface Component (SIC).

SIC provides an interface for Vertex O Series with the following five SAP modules:

  • Sales and Distribution (SD), including Order Entry (O/E), Invoicing, and Quotations
  • Financials (FI), including Accounts Receivable (A/R), General Ledger (G/L), and Accounts Payable (A/P)
  • Materials Management (MM) including Purchasing
  • Supplier Relationship Management (SRM) including Enterprise Buyer Professional (EBP)
  • Customer Relationship Management (CRM) including Telesales and Internet Sales, SAP Leasing Module

SAP Vertex Data Flow

Hopefully this post will be helpful for tax automation.

Posted in Oracle E-Business Tax | No Comments »

Oracle Tax Simulator : Essentials Simulation Tool for Implementers

Posted on May 2nd, 2012 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

If you are coming from vertex or using Vertex , you just love this .

You can use the Oracle Tax Simulator to enter transactions in order to simulate the tax determination process without creating live data.

Simulator is a powerful user interface too that can be used to simulate Tax Calculation based on what-if scenarios.

It gives flexibility to test new and/or changed tax rules. Tax Simulator helps on audit trail with respect to which Tax Rules were satisfied in calculating a particular tax.

Major Feature of Tax Simulator:

  • Simulator is a powerful user interface tool that can be used by Support.
  • Tax Simulator can act as a light-weight transaction for entering Purchase Orders, Invoices, Invoices matched against PO, etc.. that is integrated with Tax Lines User Interface
  • It gives flexibility to test new and/or changed tax rules
  • Tax Simulator helps on audit trail with respect to which Tax Rules were satisfied in calculating a particular Tax
  • Tax Simulator can act as a light-weight transaction for entering Purchase
  • Orders, Invoices, Invoices matched against PO, etc.. that is integrated with Tax Lines User Interface
  • Is a fast way to enter transactions with fewer validations to perform what-if scenarios on tax calculation

There are some restriction for this tool, therefore understand before making use of it.

  • This does not provide simulation of tax recovery processing.
  • This does not meant to test actions that you perform on transactions or transaction lines, such as canceling, deleting and reversing lines.
  • You cannot use Oracle Tax Simulator to test or verify user control settings.

Be sure to assign the “Oracle Tax Simulator” responsibility to the user and use this rather than using the menu on the home page of “Tax Administrator” – otherwise you will get encounter an error.

Posted in Oracle E-Business Tax | No Comments »

Sales Tax Nexus

Posted on March 12th, 2012 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Nexus is a constantly evolving concept, as states (over time) write new rules or reinterpret existing law.

The word nexus refers to a connection between a person and a taxing jurisdiction that is deemed sufficient to allow the jurisdiction to impose a tax.

First of all, sales tax nexus is the basis for all sales tax discussions.

Without sales tax nexus, a business has no further concern from a sales tax perspective. In this context, in its simplest definition, nexus is a physical connection between a state and a business that enables a state to subject that business to its sales tax laws. The connection has to be “substantial” and that’s where the problem arises. “Substantial” is generally left to interpretation and is rarely clearly defined.

If you are part of Tax implementaion, don;t get surprise with this term if you came across while discussing with Tax department.

You can get more insights here

[Adopted from Internet]

Posted in Oracle E-Business Tax | No Comments »

Oracle Tax Content Library

Posted on July 28th, 2011 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Recenetly Oracle has come up with Tax Content Library via a patch 8618701:R12.ZX.A. It provides tax content for

  • EU Countries: Austria, Denmark, Germany, Ireland, Poland, Spain, Belgium, France, Hungary Luxembourg, Portugal, Sweden, Czech Republic, Finland, Italy, Netherlands, Slovakia, United Kingdom
  • Non EU Countries: Norway, Switzerland, Turkey
  • Reduced Configuration: Australia, New Zealand, Taiwan, Singapore

The data is correct as of 1-Oct-2007

This does not provide updates / changes to Tax Laws e.g. Irish, UK VAT Rate changes of 2008 / 2010 not included

Still local reporting still needs to be configured and significant setups still need to be done

Posted in Oracle E-Business Tax | No Comments »

eBTax – Still Have Compliance Limitations

Posted on January 28th, 2011 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Do You know, though R12 Oracle eBTax is New module , but this provides Half of the Tax Compliance Solution , as this lack these features as compare to Tax complete solution like Vertex:

1.Tax rates

2.Situs/Place of Supply rules (e.g., modified origin)

A tax can only be based on either the ship-to or the ship-from

In Texas, the district taxes are likely to be calculated and remitted to the wrong district

3.Tier tax & max tax rules

 

  • A tax can only have a reduced basis
  • In Florida, Tennessee, Arkansas and North Carolina caps cannot be calculated
  • All taxes are calculated by the total line with no consideration to units

 

4.Product/services taxability rules

5.Returns or remittance capability

In addition, the functionality provided in EBTax may work for companies with very limited tax exposure or “nexus.”

Other functional limitation's are

  • eBTax does not provide master geography data for Address Validation (unless using a rate file)
  • From an AP standpoint, EBS R12 does not have functionality to verify vendor charged tax against system calculated tax - it will only allocate the vendor
    charged tax over the lines and compare to a tolerance that is set
  • eBTax does not provide flexibility around tax actions for vendor undercharge, overcharge, etc.
  • eBTax does not work with disparate systems - Oracle R12 only
  • Building, maintaining and testing rules can be time consuming (must write rules 3 times state, county & city)
  • Only receive jurisdictional level tax when address validated at that level
  • No reports out of eBTax to provide configuration (e.g., listing of all condition sets, rules, etc.)
  • eBTax has limited fields available for use in tax decisions
  • Performance issues encountered when the number of condition sets per rule reach the thousands (which can happen using GL accounts as a taxability driver on the procurement side)

Lets hope Oracle can add some of the missing link in future releases.

Posted in Oracle E-Business Tax | No Comments »

Modules and Financial Events for Tax Transactions

Posted on January 26th, 2011 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

In Procure to Pay (P2P) mainly 4 application Payable, Iexp, Iproc, and PO and Projects Module heavily producing Financial events for Tax , which is mostly Input in Nature.

  • Oracle Payables Invoice
  • Payables Credit/Debit Memo
  • Purchase Order
  • Purchase Transaction Quote
  • Purchase Requisition
  • Purchase Prepayment

whereas in Order to Cash (O2C) four main application like OM, OKS, Quote and AR using and producing Financial events for Tax with these transactions.

  • Sales Transaction Quote
  • Receivables Invoice
  • Sales Credit/Debit Memo
  • Sales Adjustment

Posted in Oracle E-Business Tax | No Comments »

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