US Tax Solution

With R12 and Fusion Oracle has arguably one of the most powerful indirect tax engines for any ERP or indeed any product on the market today including third party products such as Vertex, Taxware, Avalara or OneSource. So why do so many companies use a third party tax provider for US Sales and Use tax?

There are three main areas to consider:

First, the number of rates that need to be maintained are huge; our solution has over 143,000 rates with over 64,000 jurisdictions created. If you operate across multiple states then the prospect of having to maintain all of these rates is not only daunting but probably impossible without a team of people calling each state, county or city to check on rate changes.

In addition, because US taxes are so dependent on the location of the customer the geography hierarchy has to be 100% accurate so there are nearly 200,000 states, counties, cities and ZIP codes that while they don’t change very often, when they do, you need to modify your own.

Next we have exemptions: what can be exempt in one state is not in another and the intended use of a product can be treated differently. In order to cater for all the possible rules a huge amount of planning and physical configuration is needed which leads to the fourth issue – configuration time.

Even if you could get the right people with expert eBTax skills it would be extremely time-consuming to build, test, maintain and then repeat for all your instances. Those who have attempted to configure a process usually have to scale back the overall solution because it is too costly and protracted to manually create all the setups.

Why are eBiz Answers different?

While we can help you integrate a third party tax provider either as a combination of Oracle for AP and the third party solution for AR or using the third party provider entirely, we can also provide you with a tax solution that is built in Oracle and more tailored to your requirements, hugely reducing costs.

The solution is simple: we can either supply manually the rates that you need if you have a very small customer base and easily maintain the tax rates or provide you with a maintained monthly load of all the rates mapped to multiple location criteria: from State to ZIP+4. Our partner CCH assures the data with 100 years of tax and legal research.

We use tax rules within the Oracle Tax Engine to handle all exemptions and exceptions, whether by service, intended use or any other driving factor that you may have. We utilise our eBTax Rapid Install™ tool to load these rules onto any of your instances in minutes rather than the days it would take if manually configured.

Benefits are numerous: there is no external software installed, no additional tool to master, no additional software licences, no requirement to map; data including geographies are shared across other Oracle modules; easier reporting capabilities; part of a truly global solution; and a clear upgrade path to Fusion Tax.

We provide the third party tax solution without it being a third party

Contact us to find out how we can bring the solution to you, put it all in Oracle and meet all your Sales and Use tax requirements.