Oracle Fusion Tax solution architecture

The Oracle Fusion Tax solution architecture uses a centralised data model consisting of five levels:

1.  Tax Configuration – Foundation:

This level represents the tax data that you set up for each tax regime and tax that your company is subject to. A tax authorityadministers the taxes of a tax regime. Each taxwithin atax regimeis comprised of a certain number ofelements, including tax statuses, tax jurisdictions, tax rates, and if applicable, tax recovery rates.

2.  Tax Determining Factors:

This level identifies the factors that participate in determining the tax on an individual transaction. Tax determining factors can be classified into the partiesinvolved in a transaction, the productstransacted, the placesinvolved in a transaction, and the processor kind of transaction that takes place. Tax determining factors are the building blocks for tax rules.

3.  Tax Configuration – Advanced:

This level consists of the defaults and tax rules used to determine and calculate tax on a transaction. Create tax rules by translating the tax regulations of a tax authority into determining factors and tax conditions. For each transaction line, the tax determination process uses the defaults or tax rules to determine the applicable tax regimes and taxes, place of supply, tax registration,tax rate and taxable basisto use in tax calculation, and any tax recoveryto the extent applicable.

4.  Services:

This level consists of determining tax amounts, appropriate tax recovery amounts, exporting and importing designated tax setups. For US tax solutons. the integration with third-party vendor productsfor transaction tax data upload, calculation, and reporting considerations where elected.

5.  Tax Management:

This level maintains all of the tax information pertaining to each transaction for use in tax reporting.