Some of our most frequently asked Oracle eBTax and Indirect Tax questions from our clients.
What hardware is needed?
There is no additional hardware required. The solution is configured using standard Oracle functionality; it’s all part of your existing solution.
What is the licence cost?
There is no licence cost. It’s Oracle and you have already paid for it. Once it’s in, it’s all yours with no additional licence costs.
How long will the project take?
That depends on you. We recently implemented 37 countries for a client – full AP and AR automation from start to ready for CRP testing was just 3 days. The full project took 4 months to go live but most of the time was spent on the client testing, and the technical work linked to 3rd party interfaces. We have got countries live in a week from start to finish.
How can you implement this so quickly?
We use our eBTax Rapid Install™ tool which uses standard Oracle FND loads to initially load the solution in and then to copy it, with 100% accuracy, from instance to instance. A recent project we did had a saving of 98% compared to manually configuring the solution, with 99.96% of the tax logic being pre-built.
What about historical data?
Not a problem – we leave this in place and keep the perfect audit trail.
Can we keep any of our old configuration?
Absolutely. We will use our naming convention but any old rates linked to interfaces can be remapped, inventory category codes can be reused, as can product categories and party classifications. But if we replace the entire solution with our own, then it’s all part of the fixed price regardless.
What if things change?
If you take our support package, then we will be able to support any changes you have with the best possible solution, whether it is a fiscal requirement or a business one.
What if we need to add a new country?
No problem – we have over 100 on the repository and if your country is not there, then we will add it. So, any country that Oracle can be installed in, we can install our indirect tax solution on.
What expertise do you have?
We are the only consultancy that only specializes in Oracle indirect tax. We are award winners and have the most experienced Oracle indirect tax team worldwide. We have rolled out on every continent, other than Antarctica.
Does it affect our Oracle support agreement?
Absolutely not. The Innovate Tax solution is all built using standard Oracle configuration and, as it’s all standard Oracle, they support you 100%. However, if you do get an issue, we are more than likely to tell you what fix is needed, and that’s if you get an issue in the first place.
On Oracle eBTax
Can you provide me with a BR100/DS030 for setting up tax?
No! A BR100/DS030 contains client sensitive information and we cannot legally share with anyone else.
Why doesn’t Oracle provide a full tax solution as part of its offering?
Oracle has repeatedly stated that it is not in the business to provide tax content and nor will they ever be. A tax solution requires a specialist skill set to roll out and an understanding of the tax laws for the countries you are implementing is essential. Oracle could not afford to provide a solution and then have customers filing law suits because an out-of-the-box solution caused them to be non-compliant. It’s too much of a risk and a hassle for Oracle.
Can I just use the seeded tax set up – will it meet my needs?
Definitely not. The seeded tax solution is just a taster for how the tax can be configured and needs a lot more work for it to be considered fit for purpose. As Oracle are not in the business of providing tax content, what they have done is provided enough setup that covers all the areas that need to be configured for a basic tax solution.
Do I need to apply tax to intercompany transactions?
Of course you do! Any transaction between two entities needs to have a legal transaction take place with any taxation determined. Think of it this way, if you purchased a product with an entity that was fully recoverable then passed this product to an entity that was 0% recoverable, then you would be committing VAT fraud! Whilst it can be said that the majority of intercompany transactions are for services, and these are usually out of scope for intercompany VAT, the tax should still be determined on all transactions, intercomapany or otherwise.
Should I put a % in the rate name?
Most advice says no, not to do it! We put a % in the rate name because of 2 reasons. Firstly, when calculating or reporting the tax, seeing the rate helps, particularly if you have just changed rates. Secondly, if you end-date the old rate, then it is not possible to choose this rate in AR for a credit memo after the end date!
Should I use tax on purchase orders?
It depends. If you need the tax, such as in the US, or when you cannot fully recover the tax, then ‘Yes’. However, if you fully recover the tax, then ‘No’; turn it off. See http://blog.ebizanswers.net/2013/02/oracle-ebtax-tax-on-purchase-orders-tax-on-requisitions.html for further details on this subject.
We are upgrading. There is not enough time to set up a new tax solution in R12!
Yes, there is! By using our eBTax Rapid Install™ tool, you can condense what would be 30 days of manual setup time into a couple of hours! Plenty of time for that cut over a weekend.
Should I calculate tax on journal lines?
The simple answer is ‘No’. Anything that has indirect tax on it should and can be captured in the sub-ledgers and this is where you should be looking to capture the transactions, not in the GL. That said, tax on GL journals is possible and sometimes, due to the end-customers needs, required. But be careful, forget to allocate a tax or post to the tax account without first choosing a tax rate and you will mess up the reporting in a reconciliation!
We don’t have a big operation, so I need to purchase my US tax rates?
No, you can easily manage this yourself. We advise structuring things correctly to allow for future expansion and installing a complete list of geographies but you can manage the tax rates yourself.