XXX - BR100 - UK Localization - V1.1

BR100 – UK Localization
AIM
UK LOCALIZATION –
CONFIGURATION DOCUMENT
XXX
Oracle E-Business Suite Implementation
Author:
Creation Date: Oct 30, 2015
Last Updated: Oct 30, 2015
Document Ref:
Version: 1.0
Approvals:
Name Designation Signature

File Ref: Configuration Document – UK Localization (v1.0) Confidential – For internal use only
Sensitivity: Internal & Restricted

1. Document Control
1.
1.1 Change Record
Date Author Version Change Reference
30-Oct-15 Wipro Draft 1 No Previous Document
2.
1.2 Reviewers
Name Position
3.
1.3 Distribution
Copy No. Name Location
1 Library Master Project Library

2 XXX ………..
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4.
1.4 Approvals
Copy No. Name Signature
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3
Note To Holders:
If you receive an electronic copy of this document and print it out, please
write your name on the equivalent of the cover page, for document
control purposes.
If you receive a hard copy of this document, please write your name on
the front cover, for document control purposes.


Contents
1. Document Control....................................................................................................................................2
1.1 Change Record......................................................................................................................................2
1.2 Reviewers..............................................................................................................................................2
1.3 Distribution...........................................................................................................................................2
1.4 Approvals..............................................................................................................................................2
2. Prerequisites..............................................................................................................................................4
3. Feature Name : UK Reverse Charge Sales List Reports....................................................................5
4. Feature Name : European Sales List (ESL) Report.............................................................................7
5. Feature Name: Revaluations and Impairments Local Authority Accounting..............................10
6. Feature Name : AP/AR Netting..........................................................................................................11
7. Global Account Analysis Report..........................................................................................................16
8. Global GL and SLA Account analysis and Detail Report................................................................17
9. Global Journal Ledger Report..............................................................................................................18
10. Global Third Party Account Balance Report......................................................................................19
11. General Ledger Trial Balance Report..................................................................................................20
12. Asset Retirements Report......................................................................................................................21
13. Assets Additions Reports......................................................................................................................22
14. Assets Cost Detail Report.....................................................................................................................23
15. Assets Register Report...........................................................................................................................24
16. Cross Track Dependency......................................................................................................................25
17. Creation of invoices before running the reports................................................................................26
18. Open and Closed Issues for this Deliverable.....................................................................................27
Open Issues..................................................................................................................................................27


2. Prerequisites
 Define Legal entity and Ledger

 Define the countries and territories
UK Reverse Charge Sales List Reports


European Sales List (ESL) Report

 Define Customers with TRN assigned to the ship to sites. Oracle recommends that you always
prefix the tax registration number with the country code.
Revaluations and Impairments Local Authority Accounting


AP/AR Netting
 Create Bank Accounts to be used for AP/AR Netting with Netting Account flag set to yes and
selecting it as Default settlement account.
 Bank account based on the operating unit should be assigned to the seeded Receivables receipt
class “AP/AR Netting”
 Create Netting Agreement for the required supplier and customers
 Define and Assign Document Sequential Numbering.


3. Feature Name : UK Reverse Charge Sales List Reports
[To be handles by Vertex]
Significance
In the Reverse Charge mechanism, the purchaser of the goods , rather than the seller , must account
for the VAT on the sale.
Therefore, the supplier should not charge VAT, but specify with a legend on the sales invoice that the
goods are subject to the Reverse Charge.
The supplier must clearly state the amount of VAT to be accounted for under the reverse charge on
the invoice but should not include it in the amount shown as total VAT charged.
Type of requirement:
Product Localization
Impacted modules
Ebtax
Prerequisites
Configuration
 Setup tax reporting type code REVERSE_CHARGE_VAT.

 The name of the reporting type code should be exactly REVERSE_CHARGE_VAT, all letters
in upper case.
 Select data type of the reporting type code as Yes/No Indicator.
 Enable the tax reporting type code for Tax Rate use.
 The REVERSE_CHARGE_VAT tax rate type code acts as a flag to identify reverse charge tax
rates.
 When this tax reporting type code is assigned to a tax rate, system identifies it as reverse
charge tax rate.
 For Reverse charge VAT transactions, suppliers are required to charge the transaction with a
zero percent VAT rate. Customer will calculate appropriate VAT rate and pay directly to the
VAT authorities.Define a tax rate with zero percentage.
 For the zero percent VAT tax rate, assign REVERSE_CHARGE_VAT tax reporting type code
with Reporting Code value of Yes.
 A transaction will be subject to UK Reverse Charge VAT, if it satisfies following conditions:
o The goods being sold are the goods classified for reverse charge VAT
o Ship To address is in United Kingdom
o Ship From address is in United Kingdom
o Customer and Supplier are VAT registered in UK
Setup tax rules with the specified conditions for reverse charge vat applicability. If the
conditions are satisfied, system will charge the transaction with zero percent reverse
charge vat rate.
 Define Tax Rules:
o Ship To = UK
o Ship From = UK
o Tax Registration Status = Registered
o Product Fiscal Classification = Reverse Charge VAT
o Define zero % reverse charge tax rate as result


Links:
https://support.oracle.com/epmos/faces/DocumentDisplay?
_afrLoop=539495529038712&id=785486.1&displayIndex=1&_afrWindowMode=0&_adf.ctrl-
state=vlj7pjr4w_640#aref_section22


4. Feature Name : European Sales List (ESL) Report

[To be handles by Vertex]
Significance
Requirement is to provide European Sales Listing Report for declarations of intra-community
delivery of goods transactions.
Financials provide the following features:
Generic ESL extract file which includes the requirements of most EU countries.
Generic ESL Summary Report which includes the requirements of most EU countries.
Generic ESL Detailed Report for audit purposes.
Global Capability
Impacted modules
Ebtax
Prerequisites
Configuration
1. Define Countries and Territories
VAT member state code must be set for all EU countries

Responsibility: Receivables
Navigation: Setup > System > Countries (form APXSUDCC)
2. GDF for Tax Date
3. Creating ‘Intra EU Transaction Type’ Lookup Codes
Navigate to Receivables responsibility –> Setup: System: QuickCodes –> Receivables.

Query lookup Type AR_TX_INTRA_EU_TRX_TYPE.
Create lookup Codes in accordance with your requirements. These lookup Codes will be
available as selection parameters in the ESL report. Value entered in ‘Meaning’ column would
appear in the ESL report.
4. Creating ‘Legal Justification’ Lookup Codes
Navigate to the Receivables responsibility –> Setup: System: QuickCodes –> Receivables.
Query lookup Type AR_TX_LGL_JUSTIFICATN_MSG.
Create legal justification Codes in accordance with your requirements.
5. Steps for Associating the ‘Intra EU Transaction Type and Legal Justification’ Lookup Codes to
the tax code.
Navigate to Receivables responsibility -> Setup: Tax -> Codes.

Enter a unique name for the Tax Code (existing Tax Code can also be used).
Choose the relevant Tax Type and specify the tax rate as zero percent.
Navigate to More -> Select Intra EU Transaction Type as ‘UK-INTRA-EU-SERVICES’
Select the relevant Legal Justification Text (created in 5.1.2 above).


6. Tax Registration Number must be assigned to the Ship To site of a customer
Responsibility: Receivables
Navigation: Customers > Standard > Addresses > Ship-To > Open
Go To: Tax Registration Number
7. The invoices must have a Ship To site assigned (with Tax Reg.-Nr.)
The report only considers the Ship To address of an Invoice. It never considers Bill To
address.
Note : The report output has a column named Country. The value for this column is derived based on
the first two characters of the tax registration number specified on the Site Reported parameter. If
they match the VAT member state code of the country/territory, then that is taken as Country. Oracle
recommends that you always prefix the tax registration number with the country code. If the tax
registration number specified for the site reported does not have the first two characters as country
code or it does not match with the VAT member state code of the country or territory, then the
country code of the address for the site reported (ESL report selection parameter) is printed on the
report.
Invoice Creation
6.1.1 Enter Tax Date on Services Receivables Invoice

On the Receivable invoice header, users must manually enter the Tax Date by way of a Global
Descriptive Flexfield (GDF). The Tax Date is not defaulted from the transaction date or General
Ledger (GL) date. However, users have an option to choose either the invoice date or GL date as the
Tax Date, at the time of running invoice print and ESL reports.
6.1.2 Default/Enter the Zero-Rated Tax Code on Receivables Invoice lines

Users must ensure that the zero-rated Tax Code is either defaulted or entered on the intra EU
services invoice line. If transactions are imported, users must ensure that the relevant Tax Code is
available on each interface line.


Links
_afrLoop=528106550937468&id=795718.1&_afrWindowMode=0&_adf.ctrl-state=wdya8vyy1_303
https://docs.oracle.com/cd/E18727_01/doc.121/e13630/T470349T470354.htm
_afrLoop=527382070052085&id=188585.1&_afrWindowMode=0&_adf.ctrl-state=wdya8vyy1_254


5. Feature Name: Revaluations and Impairments Local Authority

Accounting
Significance
Global Capability
Impacted modules
Account Payables
Prerequisites
Prerequisites:
• The implementation should be the first activity carried out in the new period.
• During the implementation process, no asset transactions are to be posted or processed in the
current open period.
• No pending transactions are to exist for the Asset book. If you have any asset data in the Mass
Additions interface table it is acceptable, as long as you do not post these transactions in a current
open period until after all the implementation steps have been completed.
Configuration
Implementation Steps:
1. Create and assign UK Local Authority Application Accounting Definition to a Subledger
Accounting Method (SLAM) for Oracle Assets, see the Set Up section of this document.
2. Create an Asset book. For more information, see the Defining Depreciation Books section of Oracle
Assets User guide.
3. Enable the UK Local Authority Accounting option. For more information, see the Set Up section of
this document.
4. Assign the asset book to Asset categories. For more information, see the Defining Depreciation
Books section of Oracle Assets User guide.
5. Assign additional account information to Asset categories. For more information, see the Set Up
section of this document.
6. Load your asset records.
7. Execute the Calculation of Capital Adjustment / General Fund Accounts Balances for UK Local
Authority Accounting Implementation program and report for each asset book.
8. Optional: Execute the Implementation Exception Report for UK Local Authority Accounting
program and report.
Link :
_afrLoop=544371925005381&id=1329569.1&_afrWindowMode=0&_adf.ctrl-state=qpqap1fgk_44
Set up steps : https://support.oracle.com/epmos/faces/DocumentDisplay?

_afrLoop=544601628242732&id=1321454.1&displayIndex=4&_afrWindowMode=0&_adf.ctrl-
state=qpqap1fgk_147


6. Feature Name : AP/AR Netting
Significance
Oracle AP/AR Netting allows you to net your Payable invoice balances against your Receivables
invoice balances for those Customers who are also your Suppliers.
Global Capability
Impacted modules
Account Payables and Account Receivables
Prerequisites
 Create Bank Accounts to be used for AP/AR Netting with Netting Account flag set to yes and
selecting it as Default settlement account.
 Bank account based on the operating unit should be assigned to the seeded Receivables receipt
class “AP/AR Netting”
 Create Netting Agreement for the required supplier and customers
Configuration
Netting Bank Account
Navigation: Payable Manager --> Setup --> Payments --> Bank Accounts
Click on Create button.
Create a Bank Account, which can be used by the netting process. Set the Netting Account flag to yes.
Enable Default Settlement Account


Assign this bank account to the seeded Receivables receipt class “AP/AR Netting”
Navigation: Receivable Manager --> Setup --> Receipts --> Receipts Class.
Query AP/AR Netting and then click on Bank Accounts and assign the Netting bank account.


• Receivables System Options
Check the “Allow payment of unrelated transactions”check box under the Receivables system
options, if you
want to create netting agreements across multiple unrelated customers.

Navigation: Receivable Manager --> Setup --> System --> System Options.
• Netting batch approver
If approval is required for a netting agreement, the approver must be set up as a contact for the
trading
partner (Customer / Supplier). The contact must be setup with an email address.
• Chargeable Subcontracting
Navigation: System administrator --> Profile --> Systems
When the Profile option “Chargeable Subcontracting Enabled” is set to:
Yes – This will select invoices that were matched to purchase orders with outsourced assemblies by
the
netting process.
No – This will select invoices that were matched to purchase orders without outsourced assemblies
by the
netting process.
D (disregard) – This means all eligible invoices will be selected for netting irrespective of whether or
not they


• Netting Agreement
Create netting agreement to setup the rules that will decide which transactions are selected for netting
and
how they are ordered and processed once selected.
Navigation: Receivable Manager --> Receipts --> Netting --> Netting Agreement.
Click on Create Agreement.
Define Sequential Numbering:
Navigation: System Administrator --> Application --> Sequential Numbering --> Define.


 Assign Document Sequential to categories:
Navigation: System Administrator --> Application --> Sequential Numbering -->Assign
 Netting batch
Navigation: Receipts >Netting >Netting Batch
While creating netting batch we specify the netting agreement name. So only those transactions with
the type specified in the netting agreement and which relate to the customer or supplier as mentioned
while defining netting agreement would be picked by the netting batch when submitted for
processing.


7. Global Account Analysis Report


8. Global GL and SLA Account analysis and Detail Report


9. Global Journal Ledger Report


10.Global Third Party Account Balance Report


11.General Ledger Trial Balance Report


12.Asset Retirements Report


13.Assets Additions Reports


14.Assets Cost Detail Report


15.Assets Register Report


16.Cross Track Dependency


17. Creation of invoices before running the reports


18.Open and Closed Issues for this Deliverable
Open Issues
ID Issue Resolution Responsibility Target Date Impact Date
1
2
3
4
5
6
7
8
9
10


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BR100 – UK Localization

Name Designation Signature

Oracle E-Business Suite Implementation

Sensitivity: Internal & Restricted

1.1 Change Record

Date Author Version Change Reference

30-Oct-15 Wipro Draft 1 No Previous Document

Copy No. Name Location

1 Library Master Project Library

Copy No. Name Signature

Oracle E-Business Suite Implementation

Sensitivity: Internal & Restricted

Oracle E-Business Suite Implementation

Sensitivity: Internal & Restricted

 Define Legal entity and Ledger

UK Reverse Charge Sales List Reports

European Sales List (ESL) Report

Revaluations and Impairments Local Authority Accounting

Oracle E-Business Suite Implementation

Sensitivity: Internal & Restricted

3. Feature Name : UK Reverse Charge Sales List Reports

[To be handles by Vertex]

 Setup tax reporting type code REVERSE_CHARGE_VAT.

Oracle E-Business Suite Implementation

Sensitivity: Internal & Restricted

Oracle E-Business Suite Implementation

Sensitivity: Internal & Restricted

4. Feature Name : European Sales List (ESL) Report

1. Define Countries and Territories

VAT member state code must be set for all EU countries

2. GDF for Tax Date

3. Creating ‘Intra EU Transaction Type’ Lookup Codes

Navigate to Receivables responsibility –> Setup: System: QuickCodes –> Receivables.

4. Creating ‘Legal Justification’ Lookup Codes

Navigate to Receivables responsibility -> Setup: Tax -> Codes.

Oracle E-Business Suite Implementation

Sensitivity: Internal & Restricted

6. Tax Registration Number must be assigned to the Ship To site of a customer

6.1.1 Enter Tax Date on Services Receivables Invoice

6.1.2 Default/Enter the Zero-Rated Tax Code on Receivables Invoice lines

Oracle E-Business Suite Implementation

Sensitivity: Internal & Restricted

Oracle E-Business Suite Implementation

Sensitivity: Internal & Restricted

5. Feature Name: Revaluations and Impairments Local Authority

Set up steps : https://support.oracle.com/epmos/faces/DocumentDisplay?

Oracle E-Business Suite Implementation

Sensitivity: Internal & Restricted

6. Feature Name : AP/AR Netting

Netting Bank Account

Click on Create button.

Oracle E-Business Suite Implementation

Sensitivity: Internal & Restricted

Oracle E-Business Suite Implementation

Sensitivity: Internal & Restricted

• Receivables System Options

• Netting batch approver