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EBTax Key Upgrade Considerations

This document provides an overview and considerations for Client Ltd regarding an upgrade from Oracle 11i to Oracle R12 for EBTax functionality. It discusses the key differences between 11i and R12 taxes, outlines two options for the upgrade approach, notes restrictions and data migration limitations of option 1, and provides recommendations for testing and validating the upgraded tax data and configuration.

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John Stephens
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71 views12 pages

EBTax Key Upgrade Considerations

This document provides an overview and considerations for Client Ltd regarding an upgrade from Oracle 11i to Oracle R12 for EBTax functionality. It discusses the key differences between 11i and R12 taxes, outlines two options for the upgrade approach, notes restrictions and data migration limitations of option 1, and provides recommendations for testing and validating the upgraded tax data and configuration.

Uploaded by

John Stephens
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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EBTax Key Upgrade

Considerations - Client Ltd

Santosh Kumar
Oracle R12 Functional Consultant
Rover Resources Inc.,
Email [email protected]
Phone 501 288 9089

Agenda

Terminology 11i Taxes Vs R12 Taxes


EBTax Upgrade Options / Approaches
Option 1 Upgraded setup Restrictions
Option 1 Not all Data migrates
Should I Re-Implement Tax Setup or Use
the Upgraded Regime?
Testing after your upgrade
Upgrade Data Validation Approach?

Terminology - 11i Taxes vs R12


Taxes

What is Configuration Owner Option


(COO)? This is an Setup Option in Tax
Manager Responsibility used to control
how taxes has to apply on each Event
Class for each Application
Application = Receivables, Payables etc
An event class would be Invoices, Credit
Memo, Debit Memos etc.,

Terminology - 11i Taxes vs R12


Taxes

After an upgrade the system will set "Configuration


Owner Tax Options" for each product and event
class

This will be set as "Standard Tax Classification


Code" or STCC following an upgrade. This,
combined with the Direct Rate Rule that are
created during the 11i upgrade result in a unique
branch of Tax Code to be called when calculating
taxes.

EBTax Upgrade Options /


Appraches

Option 1 (STCC - 11i way of Tax


Calculation) Use upgraded Regime to
Rate Flow evaluate Pros and Cons

Option 2 (DAR - R12 way of Tax


Calculation) Implement Regime to Rate
Flow evaluate Pros and Cons

Option 1 - Upgraded Setup


Restrictions

Numerous restrictions exist with respect to


what can be changed in an upgraded tax
regime. The following are just some of the
things you cannot do in an upgraded
regime while configuration owner tax options
are set to "STCC".

Create new tax rules


Modify or add to existing tax rules
Modify existing tax formulas
Newly implement partner integrations such as
Vertex or Taxware
Set up new tax groups

Option 1 - Upgraded Setup


Restrictions

Restrictions on creating new tax rules


Restrictions on creating new tax jurisdictions
Restrictions on creating new taxes

These limitations often make it difficult to use an


upgraded a tax regime for extended periods of time.

Tax law changes or expansions into new regions


covered by different tax laws often force customers to
fully implement E-Business Tax by creating a new
taxing regime and disabling the old regime.

Option 1 - Not All Data Migrates


PL*SQL Rules

As with many extensions and customization, PL*SQL tax rules do

not migrate. If your 11i calculations are built to leverage PL*SQL tax
rules then you will need to Implement R12 E*Business Tax and write
tax rules to achieve the results you obtained with PL*SQL code in
11i. Release 12 does not have a PL*SQL calculation option.

Transactional Data

During the upgrade, you specify what range of transactions that you

wish to have data upgraded. You can limit this initially and then run
the "On Demand Upgrade" process to upgrade your tax
transactions. Please note that some reports will not include

Option 1 Vs Option 2
Should I Re-Implement Tax Setup or Use the
Upgraded Regime?

Many customers choose their upgrade as a time to


take the step to adopt the new features in R12.

There are benefits to both approaches

Benefits for using upgraded Regime (STCC)

Faster
Exemptions are regime specific so a new regime means all new
exemptions must be defined
Few changes for the end user

Benefits/Reasons for setting up fresh (DAR)

More flexibility to add/remove tax codes


11i PL*SQL rules do not migrate
Able to automate many of the tax decisions through the creation of
tax rules

Testing after your upgrade


Post-upgrade testing should follow a comprehensive methodology similar that
which you used during your initial implementation. Some of the areas you
should make certain to validate include:

Exemptions
Exceptions
Regime to Rate Flow
Invoice Entry (test all regimes and operating units)
Credit Memo entry (verify both against pre-upgraded transactions and those from
after the upgrade)
AutoInvoice
Order Entry
Tax base (Verify that the proper base is used for taxes)
Adjustments (Verify that taxes are adjusted if setup dictates)
Discounts (Verify that taxes are discounted if setup dictates)

Upgrade Data Validation


Approach?
Reports should make a up a key part of your data validation process during your
upgrade. Running an R12 report and validating that the numbers match those from 11i is a
good way to verify that your data was created correctly.

Step 1 in testing your reports must be to upgrade the code to the latest version possible
before you begin testing. Ensure EBTax reports is updated regularly with a current list of
patches.

Step 2 Identify the most critical reports you use in 11i and their R12 counterpart. Most of
the Tax reports have been migrated with a few notable exceptions (The tax exception
report was obsoleted).

Step 3 Run the reports, make sure you understand and have chosen the correct report
parameters and validate the balances. Note that some reports that were product specific in
11i remain product specific (ex: Tax Register is still AR only) while others such as the
Financial tax Register pull data from all products that integrate with the E*Business Tax

Thank You

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