Oracle eBTax – How to handle bonded warehouses?
There are many things that the Oracle e-Business Tax module cannot do and one of those is to handle product that is located in a warehouse that is holding product that is not customs cleared, also know as ‘Bonded’.
So what is the best way to be able to let the tax engine know that the item you’re selling is in fact in a bonded state and thus if sold in that state is not subject to VAT.
Currently my solution is to use an attribute flag (captured as a DFF) as a a way of indicating that either the locator or the sub-inventory is holding bonded product and then at the time the order is created to trigger an even to allow this information to be used to calculate the tax.
Has anyone had this situation before as I would be interested to hear of your solutions or indeed issues. I think what should also go hand in hand with the tax solution is a way to leverage the workflow so that when any product is being either sold directly from the bonded state or is being moved from the bonded to a custom cleared state should be put on hold until the appropriate paper work has been processed by the customs officials. Selling product that is assumed to have cleared customs but has otherwise not been can lead to very big fines indeed.