R12 e-Business Tax engine - Global Tax Rules Made Easy Norcal OAUG – Training Day 2009, 21 st 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 Industry/Domain ExpertiseBroad Range of Services – 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.

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 Tax contains rates and rules used to calculate & report tax (E.g. Arizona Tax) Tax rate for associated tax (E.g 8.05% for Arizona) A tax regime associates a common set of Tax Configuration default information, regulations, fiscal classifications, and registrations Tax rules link a Tax & a Tax Rate, Also, tax rules contain advanced tax calculation logic

Setup Tax Regime Define regulations, registrations etc. eg. Recovery, exemptions,, exceptions etc. Define party subscriptions

Setup Tax Setup AZ Tax to represent the tax legislation for AZ. Setup Tax Accounts related 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

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