Alex Fiteni - Some considerations for transaction taxes when planning an Oracle Applications R11i to R12 upgrade.

1. R12 Oracle E-Business Tax
Upgrade Considerations
Copyright 2012 Alex Fiteni CMA & Fiteni
Enterprises Inc

2.  IT implementation, upgrade and support
staff
 Tax Subject Matter Experts, analysts
 Tax Practice Managers
 Payables Managers
 Receivables Managers
Audience
2
Copyright 2012 Alex Fiteni CMA & Fiteni
Enterprises Inc

3. Differences between Oracle R11i & R12
Where did the tax codes go?
Upgrade Options

4. Differences between R11i and R12
Tax
 Multiple Tax Engines
 Tax Codes driven
 Operating Units and
GRE/Les
 Module Accounting
 Single Tax Interface
 Tax Content and
Rules driven
 Legal Entities
 Central Accounting
Module (SubLedger
Accounting)
Copyright 2012 Alex Fiteni CMA & Fiteni
Enterprises Inc 4

5. Where did the Tax Codes Go?
From R11i Setup Source To R12 eBTax Tax Content
destination
 Tax Codes
 Tax Groups
 Tax Recoveries
 US Location rates
 Tax Rate Codes & Tax
Classification Codes
 Tax classification Codes
with Direct Rate Rules
 Tax Recovery rate Codes
with Tax Recovery Rate
Rules
 HZ Geographies
5
Copyright 2012 Alex Fiteni CMA & Fiteni
Enterprises Inc

6. R11i to R12 Tax Codes
Reconciliation - Examples
R11i Tax
Code or
Group
R11i
Module
Source
R12 Tax
Classificat
ion Code
R12 Tax
Rule
R12 Tax
Rate OR
Recovery
Tax Code AP or AR Same as tax
Code
Default Tax rate
code
Tax Group AP or AR For each
Tax Code in
the Group
Direct Rate
Rule
Tax rate
Code
Tax Code
Default
Recovery
Rate
AP Original Tax
Code
Recovery
Rate
Tax
Recovery
Rate Code
Tax Code
Recovery
Rate
Conditions
AP Original Tax
Code
Recovery
Rate rules
Tax
Recovery
Rate Code

7. Upgrade Approaches
 One to One upgrade with no migration
Status Quo or One to One
 Easier to reconcile
 Relies on Tax rules by Operating Unit
 No central tax rules or rates
 Limited post-Upgrade path
 Legacy upgrade & migration
Incremental approach
 Allows retention of tax historical data
 Provides a post-upgrade path to leveraging new
functionality
 Re-Implement
 Is it an effective strategy?
7
Copyright 2012 Alex Fiteni CMA & Fiteni
Enterprises Inc

8. Upgrading your tax footprint
 Clearly define
scope, tasks, pre-
requisites, and
ALL resources
 Engage the tax
department early
and often
 Upgrade then
migrate may be
least risk
approach
Copyright 2012 Alex Fiteni CMA & Fiteni
Enterprises Inc 8
Pre
Upgrade
Upgrade
Post
Upgrade
Post
Go-Live

9. Data Quality & Tax
 Migrated Tax Codes use FND Lookups to provide List
of Values for picking Tax Classification Codes
 Tax Classification Codes List of Values mix Tax Codes and
Tax Groups
 Can not easily differentiate between codes used by different
Operating Units
 Can not easily shorten the Tax Classification Codes ‘List of
Values’ (LOV) in AP Invoice Workbench, iExpense, or AR
Invoice Workbench
 Some transactions may not get a Tax Classification assigned
during upgrade
 Addresses in R12 require more stringent validation for
Country
 If any Location Based taxes are upgraded, then Tax
validation of other geography elements is required
9
Copyright 2012 Alex Fiteni CMA & Fiteni
Enterprises Inc

10.  Data Quality as a Critical Success Factor
 Clean up Addresses
 Tax Codes and Tax Groups
 Tax Automation as a driving objective
 Migrate to Regime to Rates & Rules
 Software Quality Assurance
 Preventive approach to patching take up the
latest CPU and apply patches immediately
 Invest in in-depth R12 Upgrade Testing and
Validation
Best Practices
10
Copyright 2012 Alex Fiteni CMA & Fiteni
Enterprises Inc

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12. About Fiteni International Group
 Specializing in
 Regulatory and Tax Compliance process improvement for Multi-
Nationals
 Tax product training
 Tax Content Management
 Business process improvement focused on tax compliance
 Oracle E-Business Suite Upgrade and Implementation, PMO
12
Copyright 2012 Alex Fiteni CMA & Fiteni
Enterprises Inc
Oracle R12 Upgrade Challenges, Risks
and Mitigations
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2, 2012 – Go To:
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Author and Narrator : Alex Fiteni