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
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
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.
About ConzultZone
– ConzultZone is a business transformation consulting firm designing and implementing
solutions 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.

Industry/Domain Expertise Broad Range of Services

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)
Objectives

• Understand key differences between 11i and R12 tax

• Discuss configuration steps for R12 eBusiness tax
• Review key considerations during R12 tax implementation
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 and
share across multiple Operating
Units
- Powerful and flexible tax rules
engine to write tax rules, and
perform tax reporting
R12 Tax Configuration – A Simplistic View

A tax regime associates a common set of Tax

Configuration default information, regulations, fiscal
classifications, and registrations

Tax contains rates and rules used to

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

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

rules contain advanced tax calculation logic

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

Arizona)
Setup Tax Regime

Define regulations,
registrations etc. eg.
Recovery, exemptions,,
exceptions etc.

Define party
subscriptions
Setup Tax

Setup AZ Tax to represent Setup Tax Accounts related

the tax legislation for AZ. to this Tax
Setup Tax Rate

Setup rate corresponding

to the tax
Setup Tax Rules

Associate the tax rate to

the tax
Advanced Tax Rules Example – Product Based
exemption

Setup Inventory Category

based Fiscal Classification
Advanced Tax Rules Example – Product Based
exemption

Setup tax rule to exempt

tax based on Item Category
Advanced Tax Rules Example – Product Based
exemption

Setup tax rule to exempt

tax based on Item Category
R12 E-Business Tax – Key Learnings
- R12 eBusiness Tax is extremely powerful. However, careful analysis is required
to 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 to
integrate 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
 Questions

Please reach out to rajeshp@conzultzone.com or

avendhan@metronconsulting.com for questions/clarifications.
Thank You