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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

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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.

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