Applications

Expand all | Collapse all

Got Tax Question? Any tax question?

  • 1.  Got Tax Question? Any tax question?

    Oracle Ace
    Posted 04-29-2020 04:56
    I have a couple of sessions for our online collaborate that you an join;

    ID: 11792 -Technology as a Disrupter? Global Indirect Tax Is Changing and How it WILL Affect Your Business
    ID: 11800 - Power Hour - eBTax Hacks. Your Questions Answered (ERP and Cloud Tax, VAT, GST, Sales and Use)

    And I need your help for the second one. We have some questions posted already but I want more! So no matter how stupid you may think your question is, ask it but it has to be related to tax. That's Indian GST, European VAT, Russian book of purchase, Chines Golden tax adapter, Latin tax engine in the cloud, Tennessee single article tax. 

    This is a great time to ask about any tax issue and we will do our best to include the answers in our Power Hour. 

    If the question is sensitive's then feel free to privately message me - am always happy to help.

    Cheers
    Andrew Bohnet
    Tax Management SIG Chair

    ------------------------------
    Andrew Bohnet
    Director
    Innovate Tax
    Bognor Regis
    (441) 243 860893
    ------------------------------


  • 2.  RE: Got Tax Question? Any tax question?

    Posted 06-19-2020 17:11
    I need some guidance regarding Tax on POs. Need possible options to update the tax_classification_code on POs - a custom hook or an api. Any help/direction will be appreciated.

    ------------------------------
    Manju Chugani
    ERP Manager
    Energy Management Collaborative LLC
    Plymouth MN
    (800) 362-4332
    ------------------------------



  • 3.  RE: Got Tax Question? Any tax question?

    Posted 06-21-2020 18:23

    Dear OAUG Tax Guru:

     

    We are currently running EBS version 12.2.7

    We are currently using a third party tax vendor for our Sales Tax calculation and reporting for our main headquarter Chart of Account in the US. 

    We are currently in the process of migrating from EBS on prem to Oracle ERP cloud applications.

    We have below tax requirements to implement besides our current Sales Tax calculation engine that our third party provides for our enterprise customer ecommerce applications.

     

    1-    Implementing Use Tax in Oracle ERP cloud for PO & AP applications for our US Corporate Chart of Account. 

    2-    We are implementing a separate ledger in Oracle ERP cloud GL application for each of our international offices located in Singapore, India, China, Japan, and Austria. We need tax content, tax calculation engine and tax reporting capability for these countries to implement as a part of our Oracle ERP Cloud in progress project.

     

    Note: Currently we do NOT use Oracle ebiz tax in our EBS version 12.2.7. All our sales tax calculation happens outside of our Oracle EBS via our tax vendor Tax SOA Service. 

              

    Questions:

    1- Do you know of any Oracle ERP customer that has already implemented such tax configuration as noted above under requirement item 1 & 2?

    2- Do you know of third party vendor(s) that have all mentioned integration for Oracle ERP application as noted above under requirement item 1&2?

    Note: Our organization needs the current sales tax engine capability for all its ecommerce applications that reside and are maintained outside of Oracle EBS and or ERP cloud.

     

    Thank You Kindly,

    Abb.

    --

    Abb Ramandi
    Senior Manager, Oracle Financial Application Development
    Information Technology

    ----------------------------------------------------------------------------
    IEEE
    445 Hoes Lane | Piscataway, NJ, 08854
    Ph:(732) 562-5462| Mobile: 732-887-8704
    a.ramandi@ieee.org

    ----------------------------------------------------------------------------------------------------
    IEEE- Advancing Technology for Humanity.
    ----------------------------------------------------------------------------------------------------





  • 4.  RE: Got Tax Question? Any tax question?

    Oracle Ace
    Posted 06-22-2020 08:14
    Ok, so this reply includes the original message and my answers in red so easier to relate the answers to the questions being asked;

    We are currently running EBS version 12.2.7

    We are currently using a third party tax vendor for our Sales Tax calculation and reporting for our main headquarter Chart of Account in the US. Send me a private message and we can have a quick meeting as be interesting to see what tax engine you currently use and how it is being used.

    We are currently in the process of migrating from EBS on prem to Oracle ERP cloud applications.

    We have below tax requirements to implement besides our current Sales Tax calculation engine that our third party provides for our enterprise customer ecommerce applications.

    1-    Implementing Use Tax in Oracle ERP cloud for PO & AP applications for our US Corporate Chart of Account. Unfortunately, many of the rate providers are no longer providing the USE tax rates for the cloud so whilst it is perfectly possible to determine the Use Tax so that it is clear on your reports what is use tax and what is sales tax, you will need o manually add the actual sales tax rate for those locations where the sales and use tax rates are different. Its rare but places like Colorado have this. Setting up tax for AP and PO does also not need to be done on the 3rd party tax engine - we often will have a 3rd party on the sales side only and use eBTax on the P2P side.

    2-    We are implementing a separate ledger in Oracle ERP cloud GL application for each of our international offices located in Singapore, India, China, Japan, and Austria. We need tax content, tax calculation engine and tax reporting capability for these countries to implement as a part of our Oracle ERP Cloud in progress project. this is fine - outside of the US, we would say that Oracle Tax engine is actually a better fit when set up correctly. All the countries you are needing are covered but take care of China where you will need the golden tax adapter or similar (but this is an AR interface not a tax one although it is there for tax reasons), India has some more complex requirements around their GST reporting - the set up and determination works fine but reporting demands can be problematic. 

    Note: Currently we do NOT use Oracle ebiz tax in our EBS version 12.2.7. All our sales tax calculation happens outside of our Oracle EBS via our tax vendor Tax SOA Service. ok, best to PM me as per first comment so I can understand your requirements better but we have implemented eBTax in over 150 countries so it will meet all your needs to a point - the main restriction is US set up and the complexities in some of the states (min/max rules, zip code accuracy etc) but internationally Oracle tax is more than capable.

             Questions:

    1- Do you know of any Oracle ERP customer that has already implemented such tax configuration as noted above under requirement item 1 & 2? yes, plenty - this is what Innovate Tax do every day. have to talk you through your options.

    2- Do you know of third party vendor(s) that have all mentioned integration for Oracle ERP application as noted above under requirement item 1&2? yes, you can either go all 3rd party, go all Oracle eBTax or mix. If integrating the 3rd party tax engine into oracle then there maybe restrictions based on the 3rd party tax engine you are using. PM me and will be able to go through what each one can do.

    Note: Our organization needs the current sales tax engine capability for all its ecommerce applications that reside and are maintained outside of Oracle EBS and or ERP cloud. Sure - but it depends on how that data is interfaces into Oracle and reported whether you need that same 3rd party tax engine in Oracle or not or you simply pass the tax code through that has already been determined. Simple logic can be used to manage any direct Oracle sales such as sales of scap, sales to employees etc that are not through your e-commerce application.

    Bottom line is that Oracle tax engine is one of the best tax engines on the market but it needs to be set up properly and unfortunately there are a lot of people out there who think they can set up the tax and don't really know what they are doing. 3rd party tax engines do will in the US and getting better internationally but often not needed as can be done using the oracle tax engine and at a fraction of the price. There are of course times when the 3rd party tax engine will be your only option and depending on the vendor, there are several very good ones. 



    ------------------------------
    Andrew Bohnet
    Director
    Innovate Tax
    Bognor Regis
    (441) 243 860893
    ------------------------------



  • 5.  RE: Got Tax Question? Any tax question?

    Posted 06-22-2020 08:53
    Hi Abb,

    We are on Oracle EBS 12.1.3 and have Vertex O Series On-Demand hosted by Vertex integration for addressing both US Sales Tax in OM and AR and Use Tax which addresses use tax in PO, AP and Inventory

    Vertex does have a similar integration to address the above tax requirement for Oracle ERP Cloud integration as noted in the attached link

    https://cloudmarketplace.oracle.com/marketplace/en_US/listing/21088224

    Thanks, Rasik


    ------------------------------
    Rasik Mistry

    rumistry@yahoo.com
    ------------------------------



  • 6.  RE: Got Tax Question? Any tax question?

    Oracle Ace
    Posted 06-22-2020 07:55
    Hi Manju, I did a private reply to ask for more info before I can help you but for the benefit of others;

    Oracle Cloud:
    Has standard features to allow you to create tax logic for your Purchasing Categories. We have done this a lot at Innovate Tax and can be quite detailed in how you want to manage your tax logic around exempting tax based on a PO Category. Remember to also split the exemptions by the state as depending on your location you purchase may or may not be exempt.

    Oracle EBS (R12.1/R12.2):
    There is no standard feature in Oracle EBS for adding Purchasing Categories to your tax rules. We developed a solution to use DFFs assigned to the PO categories themselves and then as with Oracle Cloud, we were then able to create tax rules to manage the exemptions on the purchases. This can be managed by Tax Extensibility or through customisations where there are pros and cons for using ether. One problem with a custom process is that any custom code will need to trigger the recalculation of the VAT after you have added the PO category. You an also use the same solution to go a step further and apply logic so that the Requestor is forced to put in their 'Intended Use' for the item purchased and this can be used in combination with an exemption certificate such as a resale certificate. So the requestor can say the intended use is for manufacturing but if the entity they are buying for has no active certificate then tax is determined as normal. This eliminates the need for the buyer to have to find out any intended use. The logic on the PO category then determine if the item itself for the location it is shipped to is exempt.

    Other Considerations:
    The PO category rules can be linked with rules based on inventory items so we can fully automate the tax exemptions based on both your inventory and non-inventory purchases. We do help our clients around the PO Category design as you will need some additional for tax purposes but too many and users will tend to pick the first category that matches what they are after and miss the correct one for tax purposes. So you need to find the right balance.

    ------------------------------
    Andrew Bohnet
    Director
    Innovate Tax
    Bognor Regis
    (441) 243 860893
    ------------------------------



  • 7.  RE: Got Tax Question? Any tax question?

    Posted 08-07-2020 10:40
    in EBS - what is the best way to handle Taxes if the Ship to and Deliver to are different? 
    If I have a project site in NJ and the material are delivered to PA warehouse, what's the best way to calculate tax?

    ------------------------------
    Manju Chugani
    ERP Manager
    Energy Management Collaborative LLC
    Plymouth MN
    (800) 362-4332
    ------------------------------



  • 8.  RE: Got Tax Question? Any tax question?

    Oracle Ace
    Posted 08-08-2020 07:24
    tax won't really work on the deliver to location as it is predominately geared up for the bill to and ship to.

    If you have not already done so, maybe check what the correct tax treatment is as if you are only temporarily storing in the warehouse in PA then you may not need to pay tax in PA as could be considered 'in transit'. I am not a tax advisor so don't know the correct treatment there. It maybe that you would need to treat (for tax) as 2 separate transactions and so the ship to and deliver to may need to be the PA location and then when they are moved from PA to NJ you treat it as an intercompany movement.

    Is there a reason why you cannot just use the ship to for PA? is the ship to driving anything else like a cost centre or project code?

    Can you provide more details around your eBTax setup
    What version of R12 are you on?
    are you using 3rd party tax engine
    if not, are you using a rates file?
    Are you using STATE, COUNTY and CITY tax levels or different?
    how has the tax been set up calculate - on the rates file or have you hard coded the tax based on your own locations?

    ------------------------------
    Andrew Bohnet
    Director
    Innovate Tax
    Bognor Regis
    (441) 243 860893
    ------------------------------