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R12 e-Business Tax engine - Global Tax

Rules Made Easy

Norcal OAUG Training Day 2009, 21st Jan, 2009

Rajesh Padinjaremadam, ConzultZone

Anthony Vendhan, Metron Consulting

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Agenda

About Us

Objectives

E-Business Tax Differences Between R11i and R12

R12 eBusiness Tax Configuration A Simplistic View

Examples of R12 eBusiness Tax Configuration

Key Learnings for R12 eBusiness Tax Configuration

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About Us

Rajesh Padinjaremadam (ConzultZone)

Rajesh is an experienced consulting manager and solution architect

with expertise in enterprise-wide transformations enabled by Oracle

Applications ERP. He has strong expertise in Order to Cash, Procure to

Pay & Manufacturing processes for High-Tech and Solar industries.

Anthony Vendhan (Metron)

Anthony has more than 12 years experience in business system design,

implementation and development using Oracle Technologies. He has

deep functional, technical and organizational experience automating

finance operations within multi billion dollar, global organizations

using Oracle Applications.

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About ConzultZone

Industry/Domain Expertise Broad Range of Services

ConzultZone is a business transformation consulting firm designing and implementingsolutions to address complex enterprise problems in the Supply Chain space

Founded by a group of dynamic entrepreneurs with Big-Four consulting experience,

helping clients of different sizes improve efficiency

We offer a broad range of services and solutions in the enterprise arena, spanning

multiple technologies including Oracle Applications and SAP. We have deep domain

expertise in industries like High-Tech, Pharmaceuticals and Solar Energy.

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About Metron

Metron Consulting Specializes in

Oracle Applications Implementations

SOA and Web Services Development

Java & OA Framework Development

OBIEE Development

Web 2.0 Development using LAMP technologies

Custom Reporting Solutions (Using Oracle tools and Open Source Technologies)

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Objectives

Understand key differences between 11i and R12 tax

Discuss configuration steps for R12 eBusiness tax

Review key considerations during R12 tax implementation

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E-Business Tax Differences between R11i and R12

11i

- Tax setups performed for

individual modules e.g. Tax

Codes for AP, Tax Codes for AR

etc.- Tax setups performed for multiple

OUs

R12

- Configure tax rules centrally in

eBusiness Tax modules and

shared across multiple modules

- Manage tax rules centrally andshare across multiple Operating

Units

- Powerful and flexible tax rules

engine to write tax rules, and

perform tax reporting

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R12 Tax Configuration A Simplistic View

Tax contains rates and rules used to

calculate & report tax (E.g. Arizona Tax)

Tax rate for associated tax (E.g 8.05% for

Arizona)

A tax regime associates a common set of Tax

Configuration default information, regulations, fiscal

classifications, and registrations

Tax rules link a Tax & a Tax Rate, Also, tax

rules contain advanced tax calculation logic

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Setup Tax Regime

Define regulations,

registrations etc. eg.

Recovery, exemptions,,

exceptions etc.

Define party

subscriptions

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Setup Tax

Setup AZ Tax to represent

the tax legislation for AZ.

Setup Tax Accounts related

to this Tax

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Setup Tax Rate

Setup rate corresponding

to the tax

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Setup Tax Rules

Associate the tax rate to

the tax

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Advanced Tax Rules Example Product Based

exemption

Setup Inventory Category

based Fiscal Classification

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Advanced Tax Rules Example Product Based

exemption

Setup tax rule to exempt

tax based on Item Category

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Advanced Tax Rules Example Product Based

exemption

Setup tax rule to exempt

tax based on Item Category

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R12 E-Business Tax Key Learnings

- R12 eBusiness Tax is extremely powerful. However, careful analysis is requiredto ensure accurate implementation and prevent potential issues

- Implementation requires more planning since the rules are centralized and have

cross-functional impact (Eg. Changing a tax rule for Payables can potentially

impact tax calculation for Receivables as well)

- Plan for tax implementation early in the process. In the 11i world, it was easier tointegrate later after the transaction module design has been completed. In R12,

tax design has a bigger impact on the overall design, and hence needs to be

planned in advance

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Questions

Please reach out to rajeshp@conzultzone.com or

avendhan@metronconsulting.com for questions/clarifications.

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Thank You