eBTax Exploration Series #2

eBTax and the Procure to Pay Process

Session ID #10033:

This session is part 2 of 5

and is delivered as part of the
eBTax Exploration Series.

Prepared by:
Dev Singh
Manager, Tax Process and Technology
KPMG
ca.linkedin.com/in/devsinghinc

REMINDER
Check in on the
COLLABORATE mobile app

AGENDA
Introduction

About the Presenter

Company Information
Collaborative SIG
Tax Management SIG

Overview eBTax Exploration Series

Explanation of tax calculation in PO
Overview of the linking Regime to Rate flow
Creating tax rules for non-inventory items
Defaulting tax rules based on supplier tax registration
Accounting basics for tax rates
Thank You

INTRODUCTION:

ABOUT THE PRESENTER

Dev Singh
Manager @ KPMG

Toronto, ON, CA

devsingh@kpmg.ca

416-777-3910

Sample e-Business Tax Projects :

Industry: Construction
Period: Dec 2014 - Current

Industry: Aerospace & Aviation

Period: Feb 2013 Sept 2013

Industry: Consumer Business

Period: Jul 2012 Feb 2013

EBS Version: R12.1.3

EBS Version: R12.1.3

EBS Version: R12.1.3

Project Overview
Tax Transformation Project
sponsored by CFO
Implementation of eBTax for
Canadian and US P2P processes

Project Overview
Upgrade from release 11.5.10
Clients first introduction to
automated taxes via the Tax
Engine

Project Overview
Financial Transformation Project
Net new implementation of EBS
to support global expansion

Expected Results
Scalable global solution that
optimizes integrated 3rd party
investments
Improved P2P process for
automated taxes

Results (Tax Specific)

Provided an overall CAD tax
solution that leveraged new R12
functionality throughout the P2P
and O2C stream

Results (Tax Specific)

Satisfied Tax requirements for
over 6 countries including
Canada and the US using the
Vertex Rate File to assist with US
setups

GITS: Process & Technology

Compliance strategy and
business case

Tax Function Design &

Operating Model

Benchmarking

Tax Strategy and KPIs

Tax Centres of
Excellence/Outsourcing

Tax Control Frameworks and

risk reviews

Process improvement

Global Process &

Technology

ERP/Tax Engine
implementation support
ERP post implementation
review
VAT Compliance Automation
PEX Cube
Data & Analytics

INTRODUCTION:

COLLABORATIVE SIG
Since 2011 the Special Interest Groups have collaborated on
joint presentations focused on a single threaded topic to allow
conference attendees to participate in end-to-end business
scenarios designed to stimulate conversation and educate
end users.
The Collaborative SIG is coordinated by:
Mohan Iyer (mohan@fscpsolutions.com) of the General Ledger SIG

Han Kolbe (hanskolbe@celantrasystems.com) of the Multi-National SIG

Thomas Simkiss (Tsimkiss@BizTech.com) of the Multi-National SIG
Special thanks to Melissa Sider (MSider@astcorporation.com) for assisting
with coordination on this collaboration.

INTRODUCTION:

TAX MANAGEMENT SIG

The Oracle Tax management SIG (formerly known as the
Oracle E-Business Tax and Fusion Tax SIG) are a key
component of the Oracle E-Business Suite and Oracle Fusion
respectively. The products have many unique features, and
boast a flexibility rarely seen in a tax compliance package.
Members of this Special Interest Group (SIG), are expected to
weigh in on both the benefits of and issues encountered with
using eBTax / Fusion Tax to solve transaction based tax
compliance problems in daily transaction processing.
The Tax Management SIG is coordinated by:
Andrew Bohnet (andrew@ebizanswers.net) Co-chair of the Tax Management SIG
Paul Kirch (paul_kirch@yahoo.com) Co-chair of the Tax Management SIG
Angie FauntLeRoy (angie.fauntleroy@thomsonreuters.com) Education Chair

INTRODUCTION:

COLLABORATIVE SIG PRESENTERS

Presenter

Company

About the Presenter

Andrew
Bohnet

eBiz Answers

Andrew is a Principal at eBiz Answers Ltd, and

a leading light in Oracle E-Business Tax
implementation and upgrade in the EMEA
region. He has been the SIG's EU Region
Education Chair since 2012 and became the
Tax Management SIG co-chair in 2014.

Dev Singh

KPMG

Dev is a Manager within KPMGs Canadian

Indirect Tax Practice focusing on Tax Process
and Technology. Dev has lead the e-Business
Tax stream for many Financial Transformation
projects including an implementation for one
of North Americas leading retailers.

Paul Kirch

Paul Kirch,
Inc.

Co-Chair of the Tax Management SIG, Paul

Kirch specializes in global implementation of
Oracle R12 & Fusion. Whilst Practice
Manager at Oracle, he headed project teams
of 50+ with budgets of $20 million+ and
frequently presented at OAUG and OOW.

INTRODUCTION:

COLLABORATIVE SIG PRESENTERS

Presenter

Company

About the Presenter

Jay
Chandran

Paul Kirch,
Inc.

Jay Chandran has over 17 years experience

in the fields of Finance, Accounting, Business
Process Re-engineering and ERP. Founder
and Director of Simplex Data Technologies in
California, Jay has held senior positions in
Oracle eBusiness Suite Consulting.

Ashish
Nagarkar

AST
Corporation

Mr. Ashish Nagarkar is a PMP & Oracle

Certified Implementer with over twelve years
of systems experience with ERP and software
projects. His functional expertise spans across
Procure-to-Pay, iExpense and E-business tax
and most of the Oracle Financial Suite.

Charles
Bauman

BizTech

Chuck is a Senior Business Analyst and

Project Manager at Biztech with over 20 years
of Corporate Accounting and Oracle
Financials and Supply Chain Management
experience. He has completed over 15 R12
eBusiness Tax implementations.

OVERVIEW:

eBTAX EXPLORATION SERIES

Session ID

Session

Date & Time

# 10032

eBTax Series #1: Automate Tax

Determination before AR and Drive
Tax from Order Management

13 April 2015
Breakers L
10:30-11:30 AM

# 10033

eBTax Series #2: eBTax and the

Procure-to-Pay Process

13 April 2015
12:45-1:45 PM

Breakers L

# 10034

BTax Series #3: Intercompany

Transactions and Tax

13 April 2015
2:00-3:00 PM

Breakers L

# 10035

eBTax Series #4: Integration and

Upgrades with eBTax

13 April 2015
3:15-4:15 PM

Breakers L

# 10036

eBTax Series #5: Tax Configuration

and Q&A

13 April 2015
4:30-5:30 PM

Breakers L

Room

If there is a specific topic or area youd like to see covered, please reach out to your
SIG or chapter lead with ideas for future sessions.

EXPLANATION OF
TAX CALCULATION IN PO:

Taxes in Purchasing
Taxes in PO are estimates only.
May not be useful to turn on for VAT setups.
If taxes are expensed, may be useful to see; especially in
environments with strict budgeting (ie. encumbrance).
Values entered at the PR/PO level can be referenced in Tax
Rules for calculation upon matching process in AP.

Overview of Regime to Rate

Flow

Regime to Rate Flow Canada GST

Tax Regime

Tax

Tax Status

Tax Rate

Tax Recovery

Tax
Jurisdiction
AB

CA GST and
HST

CA GST

CA GST
Standard

CA GST
Standard Rate

CA GST
Exempt

CA GST
Exempt Rate

CA GST 100%
Rec Rate

CA GST Zero

CA GST Zero
Rate

MB
NT

CA GST 0%
Rec Rate
CA HST

BC

NU

QC
SK
YT

Tax Rules
For presentation purposes only

Geography Hierarchy Setup

Example for Canada

Customer
Supplier
Banks
Geography
Hierarchy

Tax Jurisdictions
Module: ZX

Module: TCA

Tax Jurisdiction

Tax

Existing
Geography

Tax Jurisdiction Setup

Tax

TCA

Introduction to Tax Rules

Tax Rules
Determine Place of
Supply

What Party Address associated with the transactions will be used to

determine the appropriate jurisdiction(s) for taxes

Determine Tax
Applicability

Are taxes to be charged on transactions

Determine Tax
Registration

Which Party is responsible for remitting taxes for the transaction

Determine Tax Status

The Taxable Status of the supply on the transaction

Determine Tax Rate

The Tax Rate to be charged on the transaction

Determine Taxable
Basis

What should tax be calculated on

Creating tax rules for noninventory items

Product Category Creation

Use Product Category to trigger Product-Based tax rules
when Inventory is not part of your Oracle footprint.

Product Category: Purchase Requisition

Product Category: Within P2P Flow

PO Matched AP Invoice
Purchase Req

Req Approval
Workflow

Prod Cat

Purchase Order
Ship-To

PO Approval
Workflow

Prod Cat

Receipt &
Match

AP Invoice
Ship-To
Prod Cat

}
Tax Engine

TCC

Product Category: Rule

Product Category: AP Invoice

Product Category: AP Invoice, Tax Details

Defaulting tax rules based on

supplier tax registration

Tax Registration: Legal Establishment

Tax Registration: Supplier Tax Party Profile

Self-Assessment: Rule

Self-Assessment: AP Invoice

Self-Assessment: AP Invoice, Tax Details

Create Classification in TCA

Create Party Fiscal Classification

Party Fiscal Classification: Supplier Tax

Party Profile

Party Fiscal Classification: Rule

Party Fiscal Classification: AP Invoice

Party Fiscal Classification: AP Invoice

Accounting basics for Tax

Rates

Tax Accounts Setup

Do you have Tax Recoveries?
Do you always want to show a Tax Asset and Tax Liability on
your balance sheet?

Do you require a separate Tax Expense account?

Tax Accounts Setup Tax Asset Accounts

Tax Rules
Tax Regime

Taxes

Tax Status

Tax
Recovery

Tax Rates

Tax Accounts Setup Tax Liability (SelfAssessment)

Tax Rules
Tax Regime

Taxes

Tax Status

Tax
Recovery

Tax Rates

THANK YOU FOR YOUR ATTENTION

This session is part 2 of 5 in the eBTax Exploration Series.
The next presentation in this series is:

Intercompany Transactions and Tax

Presented by Paul Kirch @ 14.00-15.00
For more information on the eBTax Management SIG, please visit:
http://www.ebstaxsig.oaug.org / eBTax Management SIG LinkedIn

Special Thank You to:

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