Archive for 2014

Oracle R12 US Geographies data cleanse before new load

If you have upgraded from 11i to R12 and have the misfortune to have brought across all the bad geographies for states through to Zip Code then the following SQL will allow you to remove this bad data to clear the way for a 3rd party data file such as one from TTR

 

 

DELETE

hz_relationships

where object_id IN (

select geography_id

from hz_geographies where created_by_module = ‘EBTAX_MIGRATION’)

and object_table_name = ‘HZ_GEOGRAPHIES’;

 

The last step must be the delete of the HZ_GEOGRAPHIES as it is used in the queries above

 

DELETE hz_geographies where created_by_module = ‘EBTAX_MIGRATION’;

Oracle R12 Tax: The same tax conditions already exist in another tax condition set error

If you get the following error;

Oracle tax r12

The same tax conditions already exist in another tax condition set

Row 3 Error – The same tax conditions already exist in another tax condition set: CA S2 NULL B2 BC within this determining factor set. Please update the tax conditions to differentiate the details from the existing record.

 

 

 

 

You have either duplicated your condition set as the error indicates or you have simply been caught up in an Oracle bug!

To get around the issue, you have to do a little trick, the steps are as follows. Continue Reading

Oracle R12: The problem with using Legal Entities for Tax!

So, here is my problem. We have a client who has a UK legal entity but has several locations globally that are registered for local indirect tax and some other reporting but are not legal entities in their own right. According to Oracle, these are legal entity Establishments.

Oracle Definition of Legal Entity Establishment

“Legal Establishment: First party legal entities identify your organization to the relevant legal authorities, for example, a national or international headquarters. First party legal establishments identify each office, service center, warehouse and any other location within the organization that has a tax requirement. When you create a legal entity, the system automatically creates a legal entity establishment. You can create additional legal establishments according to your needs. For each legal establishment there are one or more tax registrations, depending upon the tax requirements of the applicable tax authority.”

More can be found at note 1064366.1

So what is wrong?

Continue Reading

Oracle R12 – Withholding Tax on Receivables (AR) Transactions

This article explains how in Oracle R12, you can create an invoice that has the correct total amount but with the lines adjusted down in accordance with the potential to automatically adjust the AR transaction to record the withholding tax.

To do this you will need to create a separate tax regime which takes a % based on the compounded GB VAT tax rate, as shown below.

Oracle R12 Withholding Tax for AR

 

 

 

 

 

 

In the example above you will see the original line amount was for 1000 but had 20% tax applied to it. By withholding 20% of the total invoice you would get 240, meaning that the original line amount of 1000 is now actually only 760.

By modifying the auto-accounting rules you can set the withholding tax line to be the same as the revenue account. In the example below you can see that 1. Is the original tax line and 2. Is the withholding tax line.

Oracle R12 Withholding Tax for AR

 

 

 

 

 

 

 

Whilst withholding tax is only applied to the AP transaction, it is often required to show what amount of withholding tax is required on the AR invoice that is sent to the customer. With a modification to the way the invoice is formatted, it is possible to automate the creation of the withholding tax line on the AR transaction without actually effecting any of the normal tax calculation.

 

 

Oracle e-Business Suite R12 and Chinas Golden VAT system

Golden Tax is one of the Golden Projects initiated by the Chinese government to modernize the information technology of China. The Golden Tax project refers to an integrated nationwide value-added tax (VAT) monitoring system. For more information see our previous blog:

China’s VAT and the ‘Golden Tax system’

Continue Reading

Chinas VAT and the Golden Tax System

Chinas VAT and the ‘Golden Tax system’

The indirect tax regime in China, consists of VAT, Business tax (BT) and Consumption tax (CT)

VAT

As the most important tax in China, the VAT is a circulation tax levied on the added value at each phase of a product’s typical life cycle. It obtains the deduction phase by phase so that the final tax is equal to the sum of the taxes on each production phase. Continue Reading

EU 2015 VAT changes for American Companies

The 2015 EU VAT changes effect on American digital companies

By now most of you will be aware of the forth coming EU VAT changes for digital downloads, where VAT is now charged based on the location of the download instead of the location of supply.

For more information see our previous blog posts.
– EU 2015 VAT changes – Determining customer location
– VAT changes in the digital (download) world

However it’s not only European companies that will be effected but American ones also. This is because since 2003 rules have been in place regarding the supply of digital services by US companies to customers in the EU. These rules meant that US companies had the option to put all their VAT charges through a single administration, Continue Reading

Why do we need to use the supplier exchange rate to record the tax correctly

If a domestic supplier issues you an invoice in a non-domestic currency then you must use the same exchange rate that they have used. If we take an example of a Supplier issuing an invoice where the tax is $1000 but they used an exchange rate of 1.7 USD to the GBP then the GBP amount recorded in their ledger and subsequent GBP amount they put on their return as tax collected is £588.

If we entered the invoice using our own corporate rate which was set to 1.5 USD to the GBP then the GBP amount and the amount we recover is £666. That means that total tax received and total tax paid out leaves the tax authorities short of £88! So that is why when the invoice is entered, the initial amount recorded in your GBP ledger has to be the exact same amount of that charged by your supplier.

This will then be the GBP amount recorded against the transaction and the amount that is used in the tax return. You can always revalue your currency as soon as it has been posted to the GL to bring it back in line with your corporate rate.

Are you ready for the 2015 Malaysian GST?

Oracle R12 and Fusion Tax – Malaysian 2015 GST Implementation – Accounting (Tax) Software Compliance and Requirements

On 01 April 2015, the Royal Malaysian Customs Department will implement Goods and Services Tax (GST) replacing the current Consumption Tax. The introduction of GST is part of the Government’s tax reform programmed to enhance the efficiency and effectiveness of the existing taxation system.

As a consequence of this change, companies have to ensure their Accounting Software in use for business is in compliance with new requirements. Developing/Enhancing the accounting software will be necessary to produce additional electronic files, listings, reports, etc. This is something that eBiz Answers has been working on for some time and now has an off-the-shelf solution available for Oracle R12 and Oracle Fusion. Continue Reading

Don’t give VAT the silent treatment

Don’t give VAT the silent treatment

Many companies view VAT as being a complex tax to deal with and in some cases do not make the necessary precautions to ensure that VAT is calculated and paid properly or try to deliberately pay the incorrect amount of VAT. Many believe that they won’t get caught or feel they do not have the ‘time’ to deal with VAT and that it doesn’t really matter. This however is not true, HMRC announced earlier this year that they were implementing a VAT taskforce in order to deal with companies and individuals who are non-compliant and more and more are getting caught every day. Continue Reading

EU 2015 VAT Changes – Customer Location

2015 EU VAT changes – Determining customer location

By now most of you will be aware of the EU VAT changes to digital downloads, where the VAT is now charged for the country it is downloaded in rather than from where it is supplied, however many businesses are questioning how they determine their customers place of supply. Many people now a days use many different installs or plugins etc. to change their perceived location, for example there are many chrome plug ins that allow you to set your location to different countries in order to access certain video streaming services or websites otherwise blocked or different in the country that they are in, but will this affect the VAT rate that they pay for digital downloads? Could you for example be in Hungary and set your location to Luxembourg in order to only pay 17% (new 2015 rate) instead of 27%? And if so how to companies prevent this from happening and inadvertently committing VAT fraud.

Which means that the key issue for suppliers will be to correctly identify where their customers belong, so they can apply the correct rate of VAT. In order to try to provide both clarity and certainty on this point the regulations contain a number of presumptions which will have legal effect in all 28 EU Member States. Continue Reading

eBiz win Gold at UKOUG Partner of the Year Awards

We are pleased to announce that eBiz Answers have won 3 Gold awards at the seventh annual UKOUG Partner of the Year Awards. We would like to thank everyone who voted for us and congratulate all other winners at this years ceremony.

eBiz Answers were awarded Gold in the following categories:
– Innovative (Product/Service) Partner of the Year
– Small Business/General Business Partner of the Year
– Independent Partner of the Year

The awards provide recognition to UKOUG Partners for the contribution that Continue Reading

Oracle R12 eTax: APP-SQLAP-97733 tax distribution error

If you get the following error when trying to look at distributions or validate your AP invoice, then this is caused by a currency issue.

ZX_GENERIC_TEXT

invoice validation issue

Continue Reading

Oracle R12.2 ‘JBO-25009: Cannot create an object of type: oracle.jbo.domain.Date with value:’ issue

Has the issue ‘JBO-25009: Cannot create an object of type: oracle.jbo.domain.Date with value:01-Jan-2000’ when assigning the tax regime to the Party Tax Profile for an Operating Unit.

I was able to assign one Tax Regime, but when i tried to assign the next it crashed out with the error.

 

tax Continue Reading

Luxembourg VAT increase coming soon

Luxembourg to raise VAT 2%

From the 1st of January 2015 Luxembourg is to hike all rates other than its super reduced rate of VAT by 2%, increasing the standard rate of 15% to a rate of 17% and reduced VAT rates will rise from 12% and 6% to 14% and 8%, respectively. The rate of the super reduced rate is to be unchanged at 3 percent but its scope will change.

The Prime Minister confirmed that the measure would help raise €350 million which would be vital to compensate for the scheduled change in EU 2015 B2C VAT digital services place of supply rules. Many companies base their digital download business headquarters in Luxembourg due to its low VAT rate, however when the VAT rule changes in 2015, where companies pay the VAT of the country in which the product is downloaded, Luxembourg is set to lose out approximately €700million per annum.

If your company is registered for VAT in Luxembourg you should be aware that any change in the VAT rates will affect businesses both as suppliers and as customers. Businesses registered for VAT in Luxembourg should therefore keep well-informed with the planned VAT developments and adjust accordingly.

For more information please see:

Luxemborg confirms VAT rise for 2015 – from vatlive.com
Luxemborg issue guidance ahead of 2015 VAT rate changes.