Fusion Tax

What Exchange Rate To Use For Foreign Currency Invoices From Domestic Suppliers

Do I have to use the exchange rate on the supplier invoice when entering a domestic invoice with a foreign currency.

Most ERP systems, good ones at least such as Oracle and SAP, will allow you to enter and store an exchange rate to use for your foreign currency invoices so that the foreign currency will then be automatically converted to your ledger currency when posted. There are also times when you may receive a foreign currency invoice, USD is the most common scenario, from a domestic supplier and VAT is charged because the sale is within the same country.

The problem

Continue Reading

Oracle Cloud Tax updated for Release 11

Fusion Tax Release 11 Updates

Below is a high level overview of the new functionality available for the Oracle Cloud tax engine. As you can see, there are quite a few changes.

Estimated Tax on Sales Order now possible.

Create a rule using tax determinant which includes transaction business category = Sales Transaction

Create a UD.

Enhanced Rapid Implementation Spreadsheets:

Data related to tax rules moved from tax config workbook to tax implementation workbook.

The following worksheets are new in the implementation workbook:

  • Tax Exemptions: Create tax exemption configuration for third parties and third-party sites.
  • Party Classifications: Associate party fiscal classifications with the parties.
  • Tax Reporting Codes: Create tax reporting codes and tax reporting types for downstream use in tax reports.
  • Tax Payer Identifiers: Define specific taxpayer identifiers for third parties and third-party sites for purposes of reporting.
  • Product Fiscal Classifications: Create product fiscal classifications for subsequent use in tax rules having a product inventory linked determining factor class.
  • Tax Rules: Define rules that look for a result for a specific tax determination process, such as determining place of supply or tax registration, in relation to a tax on a transaction.

Tax registrations have moved out of party tax profiles task. Now have their own task lists of:

  • Manage Tax Registrations: Use this task to create or edit details related to Tax Registrations, Withholding Tax Registrations, and Taxpayer Identifiers.
  • Manage Tax Exemptions: Use this task to create or edit details related to Tax Exemptions and Withholding Tax Exemptions.

Continue Reading

How to get around the ‘Unable to retrieve content. Additional Information for Remote Region error #6’

During Fusion tax setups, if you come across this error ‘Unable to retrieve content. Additional Information for Remote Region error #6’ when searching for tax rules then the following video should help you out.

 

Oracle Fusion Tax: “You must enter a value in the Determining Factor Class 1 attribute” issue with Rapid Setup Spreadsheets

If you get the following issue

“You must enter a value in the Result attribute” then have a look at the data you are loading. If your condition is names “bill form uk, bill to us” then there is an issue. The spreadsheet is a CSV file, so having a comma in the name of the condition causes it to fail! so, if you are using spreadsheet uploads in oracle fusion – don’t use commas!

Oracle Fusion Tax: “You must enter a value in the Result attribute” issue in spreadsheet upload

If you get the following issue

“You must enter a value in the Result attribute” then have a look at the data you are loading. If your condition is names “bill form uk, bill to us” then there is an issue. The spreadsheet is a CSV file, so having a comma in the name of the condition causes it to fail! so, if you are using spreadsheet uploads in oracle fusion – don’t use commas!

Oracle Fusion Tax: Tax Registration Options

Tax Registration Options

Every legal entity needs to have its reporting registration options set, just like with Oracle R12.

Option

Description

Impact

Tax Regime

Enter the tax regime for this registration. This is a mandatory value in order to set up your Tax Registration. We also advise that you set a separate Tax Regime for each tax registration number you may have.

If you are using duplicate registration numbers then you need to set the Tax too, however, leave this blank if you don’t care about duplicate tax registration numbers.

The tax regime and optionally and tax are used to determine the correct tax registration at transaction and reporting time.

Registration Type

If applicable, select a classification of the tax registration. Its not mandatory but always a good idea to put one in in case a seeded report requires this information now or in the future.

The predefined tax registration types are specified by the tax authority. The tax registration types are for reporting purposes only.

Registration Number

Enter the company tax registration number assigned by the tax authority – So go ask your tax department for this number. This is the tax number, not the company number!

If you set the tax regime option to use the legal registration number as the tax registration number, then select the registration number from the legal registration numbers in the list of values.

If you set the Allow duplicate tax registration numbers option for the tax, then multiple parties and party sites can use the same tax registration number for this tax.

Oracle Fusion Tax validates the number according to tax authority validation rules, if the validation exists for that country. This means that you need to get the format correct or it may not be accepted, so remove spaces or dashes if needed.

Registration Status

Enter the party’s tax registration status. Oracle Fusion Tax provides these predefined registration statuses:

  • Agent: The party acts as a withholding agent for the tax authority for the applicable tax.

  • Registered: The party is registered for the applicable tax.

  • Not registered: The party is not registered for the applicable tax.

  • XX 123456789 Same VAT Group (eBiz Answers Setup)

Use the tax registration status as a determining factor in tax rules. This values can be added to and used in tax rules

Source

Identify if this party is:

  • Explicit: The party is registered with the local tax authority and has a tax registration number. In this case, you know that the party is registered and the details including the tax registration number.

  • Implicit: The party is not formally registered with the tax authority, but the party is considered to meet one or more requirements for reporting taxes because of the level of business conducted. In this case, you determine that the party is registered but you do not know the tax registration number.

If the source is Explicit the tax registration number is required. If the source is Implicit the tax registration number is not required.

Rounding Rule

The rule that defines how the rounding should be performed on a value involved in a taxable transaction. For example, up to the next highest value, down to the next lowest value, or nearest. We also suggest that you set the rounding rules at the regime level and do not allow rounding override.

At transaction time, the values set at the tax registration level override the values set at the party tax profile level.

Set as self-assessment (reverse charge)

Set to automatically self-assess taxes on procure-to-pay transactions. A self-assessed tax is a tax calculated and remitted for a transaction, where tax was not levied by the supplier but is deemed as due and therefore, needs to be paid by the purchaser. If you set your solution up correctly then we suggest you set this to yes by default even if you don’t currently use Self-Assement!

You can set the self-assessment option at the tax profile level to default to the tax registrations that you create for this party. You can also set it at the tax registration level or on an individual tax line.

Oracle Fusion Tax applies self-assessment to Payable invoices received by the first party according to the tax registration setting. The specific tax registration record is derived either from the Determine Tax Registration rules or from the default tax registration.

Set Invoice Values as Tax Inclusive

Our recommendation is not to use this but if you select this because your party intends to send or receive invoices with invoice line amount inclusive of the tax amount you can use this option or for better control, use rules.

At transaction time, the values set at the tax registration level override the values set at the party tax profile level. In addition, this option at the tax registration level overrides the tax inclusive handling setting at the tax level, but not at the tax rate level.

Collecting Tax Authorityand Reporting Tax Authority

Enter the name of the tax authorities for:

  • Collecting Tax Authority: The tax authority responsible for managing the administration of tax remittances.

  • Reporting Tax Authority: The tax authority responsible for receiving and processing all company transaction tax reports.

Fusion Tax – Rapid Setup Templates

With Fusion Tax, Oracle introduced ‘Rapid Setup Templates’ with the intention to allow the configuration of eBTax to be done quickly. The idea is great and similar to our own eBTax Rapid Install™ product that we created for R12 but unfortunate it is nowhere near as comprehensive. At the time of writing this post, it also is currently full of bugs (June 2015) and a lot of them.

Continue Reading

Fusion Tax – Run Maintain Geography Name Referencing

In R12, this was a nice simple process, a solution that has been refined over the years to a stable and great solution. Fusion on the other hand still has a few teething issues as you would expect with any new release of software.

In R12, when running the same process, you had a drop down list of values so you could choose the table name. No such luck with Fusion tax at the moment (maybe fixed in future release), you need to know the table names and manually type them in, any mistakes and your request will fail.

This is the parameters:

Fusion TaxThat’s it nothing else to help you!

Continue Reading

Using an eBiz Answers Oracle R12 of Fusion Tax Solution could save you $600,000 a year

eBiz Answers prides itself on improving efficiency and trying to eliminate the risk of non-compliance.

Recent studies have shown that we can save on average 1 to 5 days a month on indirect tax procedures from invoice entry, tax processing and tax reporting.

For a project of 40 countries globally with an average employee cost of $250 a day, the following are the estimated savings per month!

0.5 days saving per month for 40 countries
@$250 per person per day = $60,000 a year
1 days savings per month for 40 countries
@$250 per person per day = $120,000 a year
5 days savings per month for 40 countries
@$250 per person per day = $600,000 a year!
Even for a 5 country roll out with 2.5 days savings per month the yearly savings would be almost $40,000

The real saving however is the fact that you will no longer get any fines because you will have such a solid tax solution that the tax group can monitor and track every transaction going through, identifying the tax issues immediately as they appear.