Case Studies

Japanese bank upgrading its 11i solution to R12

This client was acutely aware of the complexities of setting up VAT for the Belgium VAT jurisdiction and worried that they would not have enough time during the cutover weekend to get the required tax setups as well as everything else that needed to be done.

eBiz Answers worked closely with the end client to establish the Belgium VAT solution, taking full advantage of the Oracle seeded localisations around Belgium Allocations that are a fiscal requirement in that country. We configured and fully tested the VAT solution and spent time with the end users to train them on the newly automated way in which the tax was determined.

We used the eBTax Rapid Install™ tool to save time, ensure accuracy to copy the solution from instance to instance and then into the production environment during the cutover weekend. The client said that without our eBTax Rapid Install™ tool they would not have been able to complete the tax setup in the available.

US tax rollout

The client did not want to spend the large licensing fees that came with a third party tax solution as their US footprint was at the time very small with no tax charged on any sales and only one US location to capture expenses. They did however require a solution that could be expanded so did not want to be limited should they later decide to use a third party to maintain the sales tax rates. In addition, they wanted to ensure that the customers were setup with the correct addresses for future tax validation purposes.

eBiz Answers used their own US geographies database to load all US states, counties, cities and ZIP codes into the Oracle TCA geographies hierarchy. This meant that every customer entered had their address validated, ensuring that the correct tax would be calculated in the future should they require it. We were able to use standard functionality to setup the state, county and city tax rates for their US location with the ability to self-assess any user tax.

We proposed a solution where at the time a requisition was made a user was forced to enter the intended use of the purchase as they would be best placed to know. By the time the AP invoice was received and matched all the required information was available to accurately drive any tax exemptions that may have been needed.

International exhibitions company

The client organised and ran exhibitions in multiple locations around the world and was registered for VAT in the majority of them. As a result they had extremely complicated tax requirements and worried that Oracle would not be able to meet their needs.
For example, for an event in France on one transaction they may have to charge both French and UK VAT as sales for admission were under the local (French) jurisdiction whereas sales for space in the event came under UK jurisdiction. In addition, the location of the event needed to be a tax determining factor but there was no Oracle functionality to accommodate this.

eBiz Answers took the time to understand the client’s requirements. Armed with our knowledge of the capabilities of the tax module we were able to come up with a simple solution for the event location with minimal impact on the standard functionality. We then used the eBTax Rapid Install™ tool to install the VAT solution for eight European countries and one Asian.

We worked on the client specific requirements, incorporating the extensive and complex setup needed to handle the event-based rules and copied this to the further instances in minutes rather than several days if it had been done manually. The solution is capable of calculating all the tax for multiple regimes based on the location of an event, all fully automated with no manual intervention required.

Top 5 international bank in the UK

After spending almost three years with many of the ‘big 5’ consultancies in addition to some of the more prominent Oracle integration partners, this bank was unable to get a sign off for their tax solution as it consistently failed to meet its needs with rate determination, tax recovery or reporting. Nearing the go live date and desperate for a solution, through recommendation the bank engaged with eBiz Answers to resolve these issues.

In just three weeks of working on the project we completely redesigned the VAT solution using our eBTax Rapid Install™ tool to load our proven configuration, test and subsequently get sign off. We spent the remaining time before going live conducting further testing, looking at the data migration and creating training material. We used eBTax Rapid Install™ tool to migrate the solution to over 10 instances over a period of four months.

The bank had previously provisioned 15 days manual configuration for each instance; we were able to complete it in two. Without our solution and tool the go live date would simply have not been a possibility for tax. Along with the tax rates we were able to fully automate the tax recovery which changed on a yearly basis.

Due to the size of the bank the conditions for the different recovery rates were in the hundreds. As such, we created a solution that made it extremely easy for the tax group to manage these rates and conditions while allowing the offshore support team to do the configuration. This placed and retained control of the tax with the bank’s tax group – the rightful place for the tax maintenance.

Tax solution requires more than configuration

We were engaged to conduct a two-day tax workshop to go through the client’s indirect tax requirements because they were going from an 11i to R12 upgrade. We were able to explain how all their needs could be met and the client was happy that their complex tax setup would be covered with standard functionality in Oracle. Unfortunately, the client had already agreed to a fixed price solution from their major well known service integrator so we would not be responsible for their tax solution.

Seven months later we were called back in because the service integrator had consistently failed to provide a solution. Even though it was a fixed price bid the client had wasted a great deal of time trying to explain the solution to the service integrator that their own project costs had gone through the roof; the client was extremely frustrated and the service integrator had consumed a huge amount of its budget without achieving a solution.

The problem was simple: their consultant knew how to set up tax; configuring a rate and a rule was not an issue but they had no idea on how to provide a solution. They wasted time trying to get the client to tell them what was needed and map the 1500 migrated tax codes to new ones but getting nowhere. The correct approach would have been to provide a solution and then identified where it did not meet the client’s requirements.
This is exactly what we at eBiz Answers do; we load in our 80% fit which covers the majority of tax rules so that from day one you have a fully automated tax solution. We then map all the old rates to the new ones so the client is happy that everything is covered and then capture the additional 20% to complete the solution.

How can you expect a client to design the solution for you? The service integrator should be the expert but in so many cases they are good at configuration but poor at converting business process into new functionality.

Multi-national manufacturer using a ‘commissionaire sales structure’

Already an Oracle 11i user, the client had decided to re-implement rather than upgrade to R12. Having experienced many issues around VAT with their 11i solution they wanted to ensure that the new solution catered for their needs. They operated in the US, EMEA and the APAC regions, utilising in full country localisations with full manufacturing in multiple countries resulting in complex drop shipment scenarios.

After working with two Oracle integration partners and a management consultancy, neither of which were able to offer a solution, eBiz Answers took just two hours to provide one that would eventually be used for this 37-country rollout. We worked closely with the client and end users to automate their previously manual solution and train their users on the new approach. We were able to offer a truly global tax solution with the same naming conventions, hierarchical structures and the ability to use the same reports across all the countries.

The client benefited from our extensive knowledge of the tax module where a work around was needed to handle international drop shipments. Not only was the go live of the project a success but the client has been able to support and maintain their own solution.