AGIS and eBTAX – how to make the most out of your eBusiness Tax solution
What is the best way to drive your taxes from an AGIS transaction?
One of the primary drivers for the AGIS (Advanced Global Intercompany Solution) module was to ensure that the correct tax was calculated for transactions that were created by journals. The problem, from an eBTax point of view, is that the useable tax information is restricted by an AGIS generated transaction that originates from GL.
Take for example the requirement under EU law to separate out the sale of Goods and Service for intra-EU trades. The only way to do this in Oracle, for the Oracle eBusiness (eBTax) tax engine, is to first create a dummy tax rate called ‘SERVICE ITEM’, and then assign this rate to the tax classification code field on an AR memo line. In turn, this memo line is linked to the AGIS Transaction Type. Rules are then used to drive the correct tax, i.e. if the transaction is between two EU entities and the SERVICE ITEM is used then ‘Intra EU Sales Services’ will be calculated rather than the ‘Intra EU Sales Goods’.
When the AGIS AP invoice is created, you need to pull the same Tax Classification Code through, i.e. ‘SERVICE ITEM’ so that the correct AP ‘Intra EU AP Sales Services’ is calculated.
But how else can AGIS be used for tax calculations? is there an enhancement to allow not only a memo line to be added to an AR transaction type, but also to allow additional information for tax purposes such as ‘Intended Use’ or the ‘Fiscal Classification’ that can be used by AP and AR?