Ebtax Series 2 Ebtax and the Procure to Pay Process Presentation 717

8/16/2019 Ebtax Series 2 Ebtax and the Procure to Pay Process Presentation 717

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REMINDER

Check in on theCOLLABORATE mobile app

eBTax and the Procure to Pay Process

Prepared by:Dev SinghManager, Tax Process and TechnologyKPMG

This session is part 2 of 5 and is delivered as part of the‘ eBTax Exploration Series’.

Session ID #10033:

ca.linkedin.com/in/devsinghinc

eBTax Exploration Series #2


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AGENDA

■ Introduction▪ About the Presenter ▪ Company Information▪ Collaborative SIG

▪ Tax Management SIG■ Overview eBTax Exploration Series■ Explanation of tax calculation in PO■ Overview of the linking Regime to Rate flow■ Creating tax rules for non-inventory items■ Defaulting tax rules based on supplier tax registration■ Accounting basics for tax rates■ Thank You


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INTRODUCTION:ABOUT THE PRESENTER

Dev SinghManager @ KPMG Toronto, ON, CA [email protected]

EBS Version: R12.1.3

Project Overview• Tax Transformation Project

sponsored by CFO• Implementation of eBTax for

Canadian and US P2P processes

Expected Results• Scalable global solution that

optimizes integrated 3 rd partyinvestments

• Improved P2P process forautomated taxes

Industry: ConstructionPeriod: Dec 2014 - Current


Project Overview• Upgrade from release 11.5.10• Client’s first introduction to

automated taxes via the TaxEngine

Results (Tax Specific)• Provided an overall CAD tax

solution that leveraged new R12functionality throughout the P2Pand O2C stream

Industry: Aerospace & AviationPeriod: Feb 2013– Sept 2013


Project Overview• Financial Transformation Project• Net new implementation of EBS

to support global expansion

Results (Tax Specific)• Satisfied Tax requirements for

over 6 countries includingCanada and the US using theVertex Rate File to assist with USsetups

Industry: Consumer BusinessPeriod: Jul 2012– Feb 2013

Sample e-Business Tax Projects :


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■ Compliance strategy andbusiness case

■ Benchmarking

■ Tax Centres ofExcellence/Outsourcing

■ Process improvement

■ ERP/Tax Engineimplementation support

■ ERP post implementationreview

■ VAT Compliance Automation

■ PEX Cube

■ Data & Analytics

■ Tax Function Design &Operating Model

■ Tax Strategy and KPIs

■ Tax Control Frameworks andrisk reviews

Global Process &Technology

GITS: Process & Technology


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INTRODUCTION:COLLABORATIVE SIG

■ Since 2011 the Special Interest Groups have collaborated on joint presentations focused on a single threaded topic to allowconference attendees to participate in end-to-end businessscenarios designed to stimulate conversation and educateend users.

■ The Collaborative SIG is coordinated by:▪ Mohan Iyer ( [email protected] ) of the General Ledger SIG

▪ Han Kolbe ( [email protected] ) of the Multi-National SIG

▪ Thomas Simkiss ( [email protected] ) of the Multi-National SIG▪ Special thanks to Melissa Sider ( [email protected] ) for assisting

with coordination on this collaboration.

mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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INTRODUCTION:TAX MANAGEMENT SIG

■ The Oracle Tax management SIG (formerly known as theOracle E-Business Tax and Fusion Tax SIG) are a keycomponent of the Oracle E-Business Suite and Oracle Fusionrespectively. The products have many unique features, andboast a flexibility rarely seen in a tax compliance package.

Members of this Special Interest Group (SIG), are expected toweigh in on both the benefits of and issues encountered withusing eBTax / Fusion Tax to solve transaction based taxcompliance problems in daily transaction processing.

■ The Tax Management SIG is coordinated by:▪ Andrew Bohnet ( [email protected] ) Co-chair of the Tax Management SIG▪ Paul Kirch ( paul_kirch@

yahoo.com ) Co-chair of the Tax Management SIG▪ Angie FauntLeRoy ( [email protected] ) Education Chair

mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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INTRODUCTION:COLLABORATIVE SIG PRESENTERS

Presenter Company About the Presenter AndrewBohnet

eBiz Answers Andrew is a Principal at eBiz Answers Ltd, anda leading light in Oracle E-Business Taximplementation and upgrade in the EMEAregion. He has been the SIG's EU RegionEducation Chair since 2012 and became theTax Management SIG co-chair in 2014.

Dev Singh KPMG Dev is a Manager within KPMG ’s CanadianIndirect Tax Practice focusing on Tax Processand Technology. Dev has lead the e-BusinessTax stream for many Financial Transformationprojects including an implementation for oneof North America’s leading retailers .

Paul Kirch Paul Kirch,Inc.

Co-Chair of the Tax Management SIG, PaulKirch specializes in global implementation ofOracle R12 & Fusion. Whilst PracticeManager at Oracle, he headed project teamsof 50+ with budgets of $20 million+ andfrequently presented at OAUG and OOW.


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INTRODUCTION:COLLABORATIVE SIG PRESENTERS

Presenter Company About the Presenter JayChandran

Paul Kirch,Inc.

Jay Chandran has over 17 years experiencein the fields of Finance, Accounting, BusinessProcess Re-engineering and ERP. Founderand Director of Simplex Data Technologies inCalifornia, Jay has held senior positions inOracle eBusiness Suite Consulting.

AshishNagarkar

ASTCorporation

Mr. Ashish Nagarkar is a PMP & OracleCertified Implementer with over twelve yearsof systems experience with ERP and softwareprojects. His functional expertise spans acrossProcure-to-Pay, iExpense and E-business taxand most of the Oracle Financial Suite.

CharlesBauman

BizTech Chuck is a Senior Business Analyst andProject Manager at Biztech with over 20 yearsof Corporate Accounting and OracleFinancials and Supply Chain Managementexperience. He has completed over 15 R12eBusiness Tax implementations.


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OVERVIEW:eBTAX EXPLORATION SERIES

If there is a specific topic or area you’d like to see covered, please reach out to yourSIG or chapter lead with ideas for future sessions.

Session ID Session Date & Time Room

# 10032eBTax Series #1: Automate TaxDetermination before AR and DriveTax from Order Management

13 April 201510:30-11:30 AM

Breakers L

# 10033eBTax Series #2: eBTax and the

Procure-to-Pay Process

13 April 2015

12:45-1:45 PM

Breakers L

# 10034 BTax Series #3: IntercompanyTransactions and Tax

13 April 20152:00-3:00 PM

Breakers L

# 10035 eBTax Series #4: Integration andUpgrades with eBTax

13 April 20153:15-4:15 PM

Breakers L

# 10036 eBTax Series #5: Tax Configurationand Q&A13 April 20154:30-5:30 PM

Breakers L


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EXPLANATION OFTAX CALCULATION IN PO:


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Taxes in Purchasing

■ Taxes in PO are estimates only.■ May not be useful to turn on for VAT setups.

■ If taxes are expensed, may be useful to see; especially inenvironments with strict budgeting (ie. encumbrance).

■ Values entered at the PR/PO level can be referenced in TaxRules for calculation upon matching process in AP.


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Overview of Regime to RateFlow


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Regime to Rate Flow – Canada GST

CA GST andHST

CA GST

CA GSTStandard

CA GSTExempt

CA GST Zero

CA GST 0%Rec Rate

CA GSTStandard Rate

CA GST ZeroRate

AB

BC

NT

MB

NU

YT

QC

SK

Tax Regime Tax Tax Status Tax Rate Tax RecoveryTax

Jurisdiction

Tax Rules

CA GSTExempt Rate

CA GST 100%Rec Rate

For presentation purposes only

CA HST


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Geography Hierarchy Setup

• Customer• Supplier• Banks• Geography

Hierarchy

Example for Canada


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Tax Jurisdictions

TaxExisting

Geography

Tax Jurisdiction

Module: ZX Module: TCA


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Tax Jurisdiction Setup

Tax

TCA


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Tax Rules

Determine Place ofSupply

Determine Tax

Registration

Determine Tax Status

Determine Tax Rate

Determine TaxableBasis

Determine TaxApplicability

What Party Address associated with the transactions will be used todetermine the appropriate jurisdiction(s) for taxes

Are taxes to be charged on transactions

Which Party is responsible for remitting taxes for the transaction

The Taxable Status of the supply on the transaction

The Tax Rate to be charged on the transaction

What should tax be calculated on


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Creating tax rules for non-inventory items


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Product Category Creation

■ Use Product Category to trigger Product-Based tax ruleswhen Inventory is not part of your Oracle footprint.


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Product Category: Purchase Requisition


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Product Category: Within P2P FlowPO Matched AP Invoice

AP Invoice

Prod Cat

TCC

Ship-To

Purchase Req

Prod Cat

Purchase Order

Prod Cat

Ship-To

}

Req ApprovalWorkflow

PO ApprovalWorkflow

Tax Engine

Receipt &Match


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Product Category: Rule


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Product Category: AP Invoice


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Product Category: AP Invoice, Tax Details


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Defaulting tax rules based onsupplier tax registration


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Tax Registration: Legal Establishment


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Tax Registration: Supplier Tax Party Profile


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Self-Assessment: Rule


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Self-Assessment: AP Invoice


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Self-Assessment: AP Invoice, Tax Details


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Create Classification in TCA


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Create Party Fiscal Classification


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Party Fiscal Classification: Supplier TaxParty Profile


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Party Fiscal Classification: Rule


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Party Fiscal Classification: AP Invoice


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Party Fiscal Classification: AP Invoice


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Accounting basics for TaxRates


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Tax Regime Taxes Tax Status Tax

Recovery

Tax Accounts Setup – Tax Asset Accounts

Tax Rates

Tax Rules


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Tax Regime Taxes Tax Status Tax

Recovery

Tax Accounts Setup – Tax Liability (Self-Assessment)

Tax Rates

Tax Rules


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THANK YOU FOR YOUR ATTENTION

For more information on the eBTax Management SIG, please visit:http://www.ebstaxsig.oaug.org / eBTax Management SIG – LinkedIn

Special Thank You to:

This session is part 2 of 5 in the eBTax Exploration Series.The next presentation in this series is:

Intercompany Transactions and TaxPresented by Paul Kirch @ 14.00-15.00

http://www.ebstaxsig.oaug.org/https://www.linkedin.com/groups/Oracle-Tax-Management-SIG-1831315/abouthttps://www.linkedin.com/groups/Oracle-Tax-Management-SIG-1831315/abouthttps://www.linkedin.com/groups/Oracle-Tax-Management-SIG-1831315/abouthttps://www.linkedin.com/groups/Oracle-Tax-Management-SIG-1831315/abouthttp://www.ebizanswers.net/http://www.ebizanswers.net/http://ebstaxsig.oaug.org/http://ebstaxsig.oaug.org/http://biztech.com/http://biztech.com/https://www.linkedin.com/groups/Oracle-Tax-Management-SIG-1831315/abouthttp://www.ebstaxsig.oaug.org/


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Ebtax Series 2 Ebtax and the Procure to Pay Process Presentation 717