Integration and Upgrades with ebtax

Transcription

1 ebtax Exploration Series #4 Integration and Upgrades with ebtax Session ID #10035: This session is part 4 of 5 and is delivered as part of the ebtax Exploration Series. Prepared by: Ashish Nagarkar Managing Principal AST Corporation REMINDER Check in on the COLLABORATE mobile app

2 AGENDA Introduction and Overview ebtax Exploration Series Lessons Learned from 11i to R12 Upgrade Problems and Issue Resolution for Upgrade Summary of lessons learned Third Party Content Providers Vertex ADP Taxware ebiz Answers Comparison of various products Best Practices Thank You

3 INTRODUCTION: ABOUT THE PRESENTER Ashish Nagarkar Oracle Certified Professional with over 12+ years of experience Working as a Managing Principal Consultant with AST corporation over 9 years. Implemented e-business Suite financial modules including Accounts Payables, Receivables, iexpense, Advance Collections, ireceivables etc. Involved in multiple implementations involving e-business tax. Involved in multiple 11i to R12 upgrades 3 presentations in Oracle Open World Multiple presentations in nationwide conferences like OAUG, NCOAUG etc on tax.

4 Specialized. Recognized. Preferred. OUR SERVICES ORACLE PARTNERSHIP ORACLE SPECIALIZED Enterprise Resource Planning Business Intelligence EPM-Hyperion Middleware CRM Managed Serv ices Education / Oracle Univ ersity Project Adv isory Serv ices Oracle Platinum Partner Pillar Partner SOA Business Intelligence Hyperion Oracle Univ ersity Approv ed Education Center Oracle Univ ersity Reseller Oracle Accelerator Implementer Oracle Managed Cloud Serv ices Implementer EBS Financial Management EBS Human Capital Management EBS Supply Chain Management BI Applications BI Foundation Serv ice Oriented Architecture Public Sector Utilities Trav el & Transportation Education & Research Application Dev elopment Framework 11g WebCenter Content 11g Access Management Suite Plus 11g Hyperion Planning 11 Essbase 11 Database 11g Hyperion Financial Management 11 Oracle Cloud Marketplace Small Business Strategy Council Adv anced Partner Support 3 Time Oracle Excellence Award Winner 2014 Chicago Tribune Top 100 Workplaces 2014, 2013, 2012 Inc Fastest Growing Companies 2014, 2012 Best & Brightest Companies to Work For 2011 Inc. Top Small Company Workplaces

5 INTRODUCTION: COLLABORATIVE SIG Since 2011 the Special Interest Groups have collaborated on joint presentations focused on a single threaded topic to allow conference attendees to participate in end-to-end business scenarios designed to stimulate conversation and educate end users. The Collaborative SIG is coordinated by: Mohan Iyer (mohan@fscpsolutions.com) of the General Ledger SIG Han Kolbe (hanskolbe@celantrasystems.com) of the Multi-National SIG Thomas Simkiss (Tsimkiss@BizTech.com) of the Multi-National SIG Special thanks to Melissa Sider (MSider@astcorporation.com) for assisting with coordination on this collaboration.

6 INTRODUCTION: TAX MANAGEMENT SIG The Oracle Tax management SIG (formerly known as the Oracle E-Business Tax and Fusion Tax SIG) are a key component of the Oracle E-Business Suite and Oracle Fusion respectively. The products have many unique features, and boast a flexibility rarely seen in a tax compliance package. Members of this Special Interest Group (SIG), are expected to weigh in on both the benefits of and issues encountered with using ebtax / Fusion Tax to solve transaction based tax compliance problems in daily transaction processing. The Tax Management SIG is coordinated by: Andrew Bohnet (andrew@ebizanswers.net) Co-chair of the Tax Management SIG Paul Kirch (paul_kirch@yahoo.com) Co-chair of the Tax Management SIG Angie FauntLeRoy (angie.fauntleroy@thomsonreuters.com) Education Chair

7 INTRODUCTION: COLLABORATIVE SIG PRESENTERS Presenter Company About the Presenter Andrew Bohnet ebiz Answers Andrew is a Principal at ebiz Answers Ltd, and a leading light in Oracle E-Business Tax implementation and upgrade in the EMEA region. He has been the SIG's EU Region Education Chair since 2012 and became the Tax Management SIG co-chair in Dev Singh KPMG Dev is a Manager within KPMG s Canadian Indirect Tax Practice focusing on Tax Process and Technology. Dev has lead the e-business Tax stream for many Financial Transformation projects including an implementation for one of North America s leading retailers. Paul Kirch Paul Kirch, Inc. Co-Chair of the Tax Management SIG, Paul Kirch specializes in global implementation of Oracle R12 & Fusion. Whilst Practice Manager at Oracle, he headed project teams of 50+ with budgets of $20 million+ and frequently presented at OAUG and OOW.

8 INTRODUCTION: COLLABORATIVE SIG PRESENTERS Presenter Company About the Presenter Jay Chandran Ashish Nagarkar Charles Bauman Paul Kirch, Inc. AST Corporation BizTech Jay Chandran has over 17 years experience in the fields of Finance, Accounting, Business Process Re-engineering and ERP. Founder and Director of Simplex Data Technologies in California, Jay has held senior positions in Oracle ebusiness Suite Consulting. Mr. Ashish Nagarkar is a PMP & Oracle Certified Implementer with over twelve years of systems experience with ERP and software projects. His functional expertise spans across Procure-to-Pay, iexpense and E-business tax and most of the Oracle Financial Suite. Chuck is a Senior Business Analyst and Project Manager at Biztech with over 20 years of Corporate Accounting and Oracle Financials and Supply Chain Management experience. He has completed over 15 R12 ebusiness Tax implementations.

9 OVERVIEW: ebtax EXPLORATION SERIES Session ID Session Date & Time Room # ebtax Series #1: Automate Tax Determination before AR and Drive Tax from Order Management 13 April :30-11:30 AM Breakers L # ebtax Series #2: ebtax and the Procure-to-Pay Process 13 April :45-1:45 PM Breakers L # BTax Series #3: Intercompany Transactions and Tax 13 April :00-3:00 PM Breakers L # ebtax Series #4: Integration and Upgrades with ebtax 13 April :15-4:15 PM Breakers L # ebtax Series #5: Tax Configuration and Q&A 13 April :30-5:30 PM Breakers L If there is a specific topic or area you d like to see covered, please reach out to your SIG or chapter lead with ideas for future sessions.

10 INTEGRATION AND UPGRADES WITH ebtax

11 Integration and Upgrades with ebtax In the fourth of five related sessions on ebtax, we will discuss upgrade lessons learned, as well as best practices to integrate ebtax with thirdparty content providers (e.g., Vertex). While the ebtax architecture has been updated in R12, some functions have been disabled (e.g., Tax Groups). Although ebtax meets tax requirements in many regions, it lacks seeded content, making it difficult for organizations to adapt to ongoing tax law changes. This session will discuss how to overcome these issues. Objectives Share lessons learned from multiple ebtax upgrade scenarios across a variety of industries and organizations. Explore ways to accommodate disabled features, such as Tax Groups, using the new functionality. Examine third-party content provider options and recommend best-practices for implementing these solutions.

12 LESSONS LEARNED FROM 11i to R12 UPGRADE

13 Lessons Learned from 11i to R12 Upgrade How is tax defined in 11i Setups in 11i Define tax for AP. Define tax for AR. Define tax for Purchasing and iprocurement. Define Tax Groups (For multiple taxes like in Canada). Separate tax code for Use Tax. Define vendor sites which use Tax. Manual tax selection by users.

14 Lessons Learned from R12 Upgrade What happens in R12 One common setup across all modules. Define Regime to rate flow. Tax groups does not exist. Sales tax or use tax is automatically calculated. Tax rules need to be defined. Geography needs to be defined.

15 Lessons Learned from R12 Upgrade Upgrade v/s New install Critical decision. Upgrade is done as a part of R12 upgrade. Functionality will be obsolete (e.g. tax Groups). Groups used in iexpense in 11i Cannot create new groups in R12 Old groups cannot be modified Must create new additional groups in 11i which you need in R12

16 Lessons Learned from R12 Upgrade Upgrade v/s New install Upgrade will freeze lot of screens. Tax rules can not be updated after upgrade. The users can not change Tax Codes. Configuration owner options are grayed out after upgrade

17 Lessons Learned from R12 Upgrade Tax Changes not allowed in R12 End date the existing Configuration Owner Tax Options. Create a new option for Standard Invoice.

18 Lessons Learned from R12 Upgrade Use Tax in R12 Upgrade created two regimes. Sales Tax & Use Tax R12 handles Use Tax differently. USE Tax codes migrated were not working and throwing errors. Users can be easily confused over which tax to be used. Fixing the use tax would have not resolved the issue.

19 Problems and Issue Resolution for an Upgrade

20 Problems and Issue Resolution for an Upgrade Error in Tax calculation on Payables Invoice - Issue The error was shown when calculating tax on invoice.

21 Problems and Issue Resolution for an Upgrade Error in Tax calculation Solution Default Primary Recovery Rate code generated by Upgrade was set to STANDARD-0 which is not a valid value. The value was changed to AD_HOC_RECOVERY and the error was resolved.

22 Problems and Issue Resolution for an Upgrade Tax recovery rates were not calculated. Tax Rates on Expense reports for Canada were not calculating the correct recovery Rates. Resolution Upgraded value for the Rule Code of Recovery Rate was not a valid value.

23 Problems and Issue Resolution for an Upgrade Tax rules were not working for Expense reports - Issue Tax rules were defined for a range of accounts. These rules were not working for iexpense. Resolution Same Tax rule name used in 11i for 2 different operating units. This was allowed in 11i. Same name caused issues in R12 because of change in architecture. Data fix provided by oracle to correct the issue during CRP. The name was changed in 11i and issue was resolved.

24 Problems and Issue Resolution for an Upgrade Tax codes not getting carried from Requisition to Purchase Order - Issue User creates a requisition with tax codes. The tax code is not there when a purchase order is created. Reasoning This is intended functionality and it will only work when full E-Business tax is implemented. Tax determination is based on various factors. When the factors change the applicable tax code is re-established. Solution Re-implement e-business tax.

25 Lessons Learned from R12 Upgrade Summary Analyze your 11i specific tax usage. Research R12s impact on Tax at your organization. Robustly test all aspects of your tax configs. Raise SRs with Oracle early on in the process. Include training for your users on the R12 change.

26 THIRD PARTY CONTENT PROVIDERS

27 Third Party Content Providers Agenda Why Third Party Integration? Product Highlights & Integration with Oracle Vertex ADP Taxware ebiz Comparing multiple integrators

28 Oracle ebtax Limitations ebtax has a robust design to meet tax requirements of all major regions of the world and is very powerful. However, it provides limited tax content. You must configure it from scratch. For complex tax regimes, configuring taxation rules and maintaining them can be very time consuming. Testing each scenario is time consuming. Highly dependent on TCA, Inventory, Legal Entity models for tax calculation. Cannot be called externally. Defining rules based on additional extensible attributes is not supported.

29 Oracle ebtax Limitations Defining rules based on additional extensible attributes is not supported. May be difficult to get enhancements prioritized. Need to implement localizations for local reporting requirements. Need to keep checking for rules / rate changes and there is always risk of missing some tax law changes which might put you in Audit risk.

30 Oracle ebtax Limitations E-Business Tax does not provide Tax rates Sites/Place of Supply rules (e.g., modified origin) Tier tax & max tax rules Product/services taxability rules Returns or remittance capability Building, maintaining and testing rules can be time consuming EBTax does not provide master geography data for Address Validation No Verification of taxes Charged by the Vendor No automated Short Pay Process No Incremental Accruals processes

31 Why do we need Third Party? Is my company prepared to maintain these rule changes that affect the simple tax rates? Who maintains the rules? How many people will we need to track and manage changes? How much will all this research and maintenance cost per year? Once we implement R12 with ebtax, what kind of support will we get from Oracle when we call them about changes? Does Oracle Support have resources that know tax and can respond to up to the minute business needs for complying with ever changing tax laws? Does EBTaxwork with my other financial systems? Does that mean I have to maintain multiple tax systems?

32 Why do we need Third Party - Benefits? To get out of the box tax content. To avoid continuously monitoring tax law changes. Automated tax content updates. Better audit support. Single solution for Oracle and non Oracle systems. Meet local reporting needs. Access to tax research of the provider. Get out of the box return / support for major countries.

33 Why do we need Third Party - Benefits? Reduced overall cost of tax compliance. Improved efficiency of transactions. Greater Business Insight. Improved footprint of taxable transactions. Reduced risk associated with manual intervention.

34 Third Party products Vertex ADP Taxware ebiz

35 Vertex Sales Tax Q Series Source: Presentation by Dave Homiak, Vertex, Inc. Vertex Sales Tax Q Series Pre Packaged and Certified by Oracle Supports Order to Cash flow only Provides solution for US transaction taxes only Consumer Use Tax not available for Q Series Monthly data upload process and verification needed at customer s end Data upload required in Oracle for ensuring correct customer/supplier addresses User interface required to configure product and party taxability, exemptions/exceptions and nexus Data only (rates and geographies) solution or complete integration available Provides details for tax reporting and returns Server based pricing

36 Vertex O Series Source: Presentation by Dave Homiak, Vertex, Inc. Web based architecture: web service hosted on application server and database server Provides solution for US taxes and International VAT (over 150 countries) Modular based (Sales Tax, Consumer Use Tax, VAT) all use same connector Vertex US Tax Links uses standard Oracle APIs - some modifications required for VAT solution VAT available since 2011 and several customers have implemented O Series Tax Links for R12 validated by Oracle for R12.1 and R12.2 Vertex Indirect Tax Returns (VITR) now available for over 80 countries Licensing based on transaction volume

37 Oracle ebusiness Tax Vertex Integration Overview

38 Oracle ebusiness Tax Vertex PROS Validated solution for R12.1 and R12.2 Uses standard Oracle tax interface for O2C and P2P VAT solution with live customers Oracle data upload program to load Vertex data Over 1000 Oracle EBS customers with references available Oracle Tax Partner since 1992 CONS Could be cost prohibitive for clients with minimal tax requirements

39 Vertex - Main Setup Steps Creating tax Regime Registering Vertex as the Service Provider Linking Vertex to E-Tax Setups Tax Tax Status Tax Jurisdiction Tax Rates Tax Rules

40 ADP Taxware Robust sales and use tax engine. Automate sales and use compliance; control costs and risks with a single tax engine.

41 ADP Taxware Benefits Recognition by the Streamlined Sales Tax Governing Board as a certified automated system when used with ADP s TaxSolver. A comprehensive taxability matrix with integrated global research covering thousands of products, services, entities, and uses supporting more than 200 million tax rules Automated reporting processes. A cost-effective automated transaction tax solution.

42 ADP Taxware Benefits SUT Pre integrated and Certified by Oracle Certified only for Order to Cash Flows. Provides solution for US Transaction Taxes only. Use Tax solution not certified by Oracle for P2P flow. Tax calculation may be supported through integration APIs. Monthly data upload process and verification needed at clients end. Data upload required in Oracle for ensuring correct customer / supplier addresses. Reference customers on R12. Over 10 customers live for SUT on R12.

43 Architecture Integration

44 Architecture Integration Taxware Enterprise is well integrated with the Oracle Financials applications of Oracle E-Business Suite, automatically calculating transaction taxes for sales, purchases, leases, and rentals. Taxware Enterprise integrated with Oracle E-Business Suite offers. Exemption certificate tracking. Improvement in the accuracy of sales and use tax compliance. Reduced audit exposure and liability. Real-time access to tax data.

45 Architecture Integration Web based Architecture: Database Server, Application Server, Web Service Provides content for 240 countries. The content provided by own research staff for both US and International Taxware Enterprise provides Sales Tax as well as VAT solution For Oracle R12, there are two releases of Taxware that are integrated: SUT and Taxware Enterprise. SUT provides compliance for US Sales and Use Tax while Taxware Enterprise provides Worldwide tax content Enterprise version being used by customers with their commerce systems R12 adapter is currently not validated, but it is the process of being validated with Oracle. Timeline for validation completion not available. Besides O2C and P2P they have a custom solution / adapter for Projects, used for estimation of tax on Projects. Integration does not require customization of Oracle Schema objects. P2P interface uses concurrent processing for tax calculation; O2C is online.

46 Architecture Integration PROS SUT Pre certified by Oracle for US Order to Cash. SUT Reference customers for R12. Has been Oracles partner since R10.7. Uses Oracle standard APIs Oracle has data upload program to Taxware data. CONS Taxware Enterprise integration not certified or validated by Oracle. No customer using International Series VAT solution with Oracle R12.

47 ebiz Answers ebiz Answers only provide Oracle indirect tax solutions and their consultants are experienced Oracle consultants first and tax consultants second. They provide a 3 rd party solution without it being a 3rd party product! There is no mapping needed as the tax engine is the Oracle tax engine so it uses actual Oracle source data, either newly created by the ebiz Answers product or existing client data such as GL codes, Item classifications or even data held within DFFs. The ebtax Rapid Install tool allows for an out of the box configuration to be set up in minutes. A 40 country rollout can have an automated tax solution in a mater of hours compared to around 100 days if done manually.

48 ebiz Answers ebiz Answers as a Consultancy Consultants all have Oracle implementation background. They know the Oracle modules so when there is an issue or enhancing the solution, we know the Oracle tables and forms for tax better than anyone. Provides US Sales and Use Tax, GST, VAT Indian and Latin American tax solutions. No separate software to install! Can use any data held in Oracle to drive the tax (some values like DFF will need small customization to access the data). NO DEFAULTING! There is no need to default a tax code they allow a manual override. The Oracle tax can use multiple determining factors to work out the default tax rate to use including ship to location, Registration status and intended use.

49 ebiz Answers ebiz Answers as a Consultancy Not just about calculating the tax rate ebiz Answers provide information that lets the users know why a particular tax was calculated. Traditional systems turn tax off when exempt, they show you a 0% tax rate such as EXEMPT RESALE, EXEMPT EXPORT. Its as important to know why transaction has no tax than calculating the correct tax rate. Minimize user error by minimizing user interaction the user never chooses the tax code, just the information that leads to the tax code. They can set up an indirect tax solution for any country even if not on their repository, they can have a solution up and ready within a week for most countries. They have consultants present at Oracle Openworld and Collaborate as well as other international tax and Oracle events on ebtax.

50 ebiz Answers ebiz Rapid Install tool Current repository has over 100 countries. New countries can be added within a week. Provides the 80% out of the box solution this is a fully automated solution. For many installs the 80% is all that is needed to go live. Any additional set up required (the 20%) only needs installation once as the ebtax Rapid Install tool can copy the 80% and 20% configuration automatically to other instances. Uses FND loader to install initial content in minutes. Same tool can be used to copy tax solution from instance to instance in minutes. Has been designed to cope with all possible scenarios that can be accommodated using standard functionality.

51 Vertex, Taxware, ebiz and Sabrix Compared Parameter Vertex ADP Taxware ebiz Answers Solution covers major countries in the world Reference R12 Customers YES YES YES Sales Tax: YES VAT: NO SUT: YES Enterprise: NO YES Fully Integrated Business Flows Covered Mapping to Oracle Attributes Order to Cash Procure to Pay Order to Cash Procure to Pay Projects (Custom) YES Order to Cash, Procure to Pay, Project Billing, Depot Repair, iexpenses, 3 rd Party Interfaces Pre-existing mapping Pre-existing mapping Uses Oracle data directly so no mapping needed Validated by Oracle YES Under Process Under Process

52 THANK YOU FOR YOUR ATTENTION This session is part 4 of 5 in the ebtax Exploration Series. The next presentation in this series is: Tax Configuration and Q&A. Presented by Mr Charles 16:30 17:30 For more information on the ebtax Management SIG, please visit: / ebtax Management SIG LinkedIn Special Thank You to:

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