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Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i to Release 12
Release 12.1
Part Number E13482-03
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Oracle Financials for Europe

This chapter covers the following topics:

Overview

This document covers the EMEA VAT Reporting solution. A brief introduction to the feature and the details of the upgrade process is explained.

EMEA VAT Reporting

In Release 12, the EMEA VAT reporting has been consolidated around the Legal Entity and E-Business Tax architectural initiatives. The existing solution has been completely redesigned and the upgrade process details the architectural changes.

The objective of the EMEA VAT Reporting is to ensure migration of VAT reporting solutions for EMEA in Release 11i to Release 12. This migration eliminates any existing country specific restriction with improvement wherever possible. The EMEA VAT Reporting was provided separately for each country in Release 11i. The processes and the reporting were duplicated for each country. For example, Belgium solution was independent from the Italian solution.

Note: When running the Subledger Accounting Upgrade program for EMEA VAT, rerun the SLA upgrade as many times as is required to process all accounting since the earliest final reported transaction date.

Consolidation of Country-Specific Reports

The reports that were previously built using Oracle Reports are now available as XML Publisher templates.

Refer to the JE/JG Technical TOI for the details of the reports that now use XML Publisher technology.

E-Business Tax-Based Reporting

With E-Business Tax, Tax Registration Number (TRN) for legal establishment becomes very significant for tax reporting. A central reporting configuration by TRN has been introduced, and each legal entity becomes associated with a TRN during the upgrade. (Refer to the E-Business Tax section for more details.)

A legal VAT reporting entity is created for each legal entity and an associated accounting VAT reporting entity is automatically created to support both the reporting and accounting requirements. If the legal entity is associated with multiple tax regimes, the tax regime information is defaulted as null during the creation of the Legal VAT Reporting Entity, and the right tax regime has to be manually entered after the upgrade.

The E-Business Tax upgrade does not process tax names called Standard. In Release 11i, the Standard tax name was associated with GL allocation rules. These will not be migrated to Release 12.

For Portugal, the sign flag for the VAT box is always defaulted to positive during the Release 12 upgrade. The sign flag has been introduced in Release 12. The VAT Boxes are migrated for each and every Financial Document Type in Release 12 for the respective source, Payables and Receivables.

For Italy, the VAT registers that do not have the document sequences assigned will not be migrated. In addition, the document sequences that are not assigned to a ledger are excluded from the upgrade.

Architectural Changes

The VAT information is country specific and hence the legal entity information is used to set the right context for the VAT processing and reporting.

Two new entities, the Legal VAT Reporting Entity and the Accounting VAT Reporting Entity, have been introduced. They help the EMEA VAT Reporting system to deal with the possible configuration changes that could take place to leverage the Shared Services architecture in Release 12 after the upgrade. For example, moving from an exclusive to shared configuration after the upgrade during an EMEA VAT reporting period.

During the upgrade, the details of the final reported transactions are migrated to a new table, which stores all EMEA VAT tax related data. As the table is updated, a call is made to the Tax Reporting Ledger (TRL) to get the default values whenever required. The same table stores the tax as well as non-tax reporting so that the table supports all the reporting requirements.

In Release 12, EMEA VAT Reporting introduces the concept of a tax calendar. The tax calendar is similar to the GL Calendar and is used for tax-reporting purposes only. In Release 11i, a specific tax calendar was used for VAT reporting in Belgium and the Eastern Countries of Europe (ECE).

For the EMEA countries not using the specific tax calendar, the upgrade derive the information required to create the tax calendar from the GL calendar associated with the ledger. It is a legal requirement for these countries to complete their VAT reporting as a part of the period closing process. The period status has no impact on the VAT upgrade process for countries that did not use the specific tax calendar in Release 11i.

Reporting Process Changes

The VAT allocation rules setup required for Belgium and Portugal are migrated.

For Belgium, each allocation rule defined in Release 11i would result in two new records: one with period type as ANNUAL and another with period type as PERIODIC.

For Portugal, VAT Boxes defined in Release 11i are migrated for each and every Financial Document Type defined in Release 12 for the appropriate source (AP/AR).

In the case of Italy, VAT Register and Document Sequences setup are migrated.

Allocation and Final Reporting are independent processes in Release 12. During the upgrade, only the Final Reported Data is migrated. Once the data is marked as finally reported, this fact is captured and stored in the E-Business Tax repository.

In Release 11i, the Finally Reporting Transactions were maintained in separate country specific tables for the countries that required this feature by law. In Release 12, a single table maintains this information for all the countries. During upgrade, the information of all the finally reported transactions is automatically migrated to this table.

Final Reporting is available for all countries by default. The table below lists the EMEA Reports and that support the final reporting in Release 12.

Country Report
Croatia Vendor Invoice Tax Report
Croatia Customer Invoice Tax Report
Czech Republic Czech Import Tax Report
Czech Republic Czech Export Tax Report
Germany German VAT for On-account Receipts
Israel VAT AP Detailed Report
Israel VAT AR Detailed Report
Israel VAT File − Related to 835
Israel VAT File − Not related to 835
Israel VAT Summary Declaration to Tax Authority
Portugal Portuguese Annual VAT Report
Portugal Portuguese Periodic VAT Report
Spain Spanish Inter-EU Invoice Format
Spain Spanish Inter-EU Invoices Journal Report
Spain Spanish Input VAT Journal Report
Spain Spanish Payables Canary Islands Annual Operations Data Extract (Modelo 415)
Spain Spanish Receivables Canary Islands Annual Operations Data Extract (Modelo 415)
Spain Spanish Canary Islands Annual Operations Data Extract (Modelo 415)
Switzerland Swiss Payables VAT Report

Upgrade Impacts Summary

A Summary of the upgrade impacts on the EMEA VAT Reporting is shown in the table below:

VAT Feature Description Release 11i Functionality Release 12 Functionality Upgrade Impacts
Basic Setup Legal VAT Reporting Entity Not present Introduced to deal with Legal Entity and TRN. Creates new Legal VAT Reporting Entities from the Legal Entity and the TRN information.
  Accounting VAT Reporting Entity Not Present Introduced to deal with BSV and Legal Entities. Defaults the accounting VAT reporting entity from the associated legal VAT reporting entity.
  Tax Calendars Applicable to Belgium and Eastern Countries of Europe (ECE). Common to all countries Existing calendar is migrated for Belgium and the ECE countries. For other countries, new tax calendars are created from the GL Accounting Calendar, using the ledger information.
VAT Allocation Setup Setup of the VAT system (including the allocation rules) Applicable to Belgium (Allocation Rules) and Portugal (VAT Boxes) Common to all countries Only the existing information is migrated and where possible we default the information from E-Business Tax.
Registers Setup of the registers Applicable to Italy Applicable to Italy Document sequences are upgraded
Selection Process that creates repository for all transactions eligible for EMEA VAT reporting. Applicable to Belgium, ECE countries, and Italy Common to all countries No impact.
Allocation Allocates the tax and taxable box numbers to the transactions eligible for EMEA VAT reporting. Applicable to Belgium, ECE countries, and Italy Common to all countries No impact
Preliminary Reporting Initial reports showing the VAT impact. Common to all countries. Common to all countries. No impact.
Final Reporting Stamps the records as finally reported to prevent future changes to the reports. Applicable to Belgium, ECE countries, and Italy. Common to all countries Existing final reported details for various countries are migrated to a single table in Release 12. It is possible to print the finally reported transactions again when required.

Format Mapping

Regional

Release 11i Feature Name Release 12 Feature Name Release 12 Product
Invoice Aging Report Invoice Aging Report Oracle Payables

Belgium

Release 11i Feature Name Release 12 Feature Name Release 12 Product
EFT Belgian Payments Belgian EFT Format Oracle Payments
EFT Foreign Payments Belgian Foreign EFT Format Oracle Payments
EFT Missing / Invalid Information Report JEBEDV08 Validation rules Oracle Payments

Denmark

Release 11i Feature Name Release 12 Feature Name Release 12 Product
Danish EDI Payments Danish EDI Payments Oracle Payments

Finland

Release 11i Feature Name Release 12 Feature Name Release 12 Product
Finnish LMP2 Payment Module Finnish LMP2 EFT Format Oracle Payments
Finnish LMP3 Payment Module Finnish LMP3 EFT Format Oracle Payments
Finnish LUM Payment Module Finnish LUM EFT Format Oracle Payments
Finnish Final Payment Register Report Payment Instruction Register Report Oracle Payments

France

Release 11i Feature Name Release 12 Feature Name Release 12 Product
French Payables Bank Transfer French EFT Format Oracle Payments
French Payables Promissory Note French Promissory Note Format Oracle Payments
French Check Accompanying Letter French Check Format Oracle Payments
French Bills Receivable French Bills Receivable Format Oracle Receivables
French Bills Receivable Bank Remittance French Bills Receivable Remittance Format Oracle Payments

Germany

Release 11i Feature Name Release 12 Feature Name Release 12 Product
German Domestic EFT Format German Domestic EFT Format Oracle Payments
German Domestic EFT Accompanying Letter German Domestic EFT Letter Oracle Payments
German International EFT German International EFT Format Oracle Payments
German International EFT Accompanying Letter German International EFT Letter Oracle Payments
German Payables Separate Payment Letter Separate Remittance Advice Oracle Payments
German Cheque Print Geman Check Format Oracle Payments
German Wire Print Report German Wire Format Oracle Payments
German Direct Debit German Direct Debit EFT Format Oracle Payments
German Receivables Direct Debit Accompanying Letter German Receivables Direct Debit Letter Oracle Payments
German Receivables Separate Payment Letter Payer Notification format Oracle Payments

Italy

Release 11i Feature Name Release 12 Feature Name Release 12 Product
Italian Inventory Packing Slip Inventory Packing Slip Oracle Inventory
Italian Purchasing Packing Slip Purchasing Packing Slip Oracle Inventory
Italian EFT Payment Italian EFT Format Oracle Payments
Italian Banking Transfer Order Italian Wire Format Oracle Payments
Italian Bills Receivable Bank Remittance Italian Bills Receivable Remittance Format Oracle Payments
Italian Bills Receivable Italian Bills Receivable Format Oracle Receivables

Netherlands

Release 11i Feature Name Release 12 Feature Name Release 12 Product
Create EFT Media feature Create Electronic Payment Instruction Oracle Payments
Netherlands Payment Specification Report Replaced by standard IBY features. IBY provides a way to allow the user to specify how invoice details can be concatenated at the payment level. Oracle Payments
Netherlands Format Domestic Payments Netherlands Domestic EFT Format Oracle Payments
Netherlands Format Foreign Payments Netherlands Foreign EFT Format Oracle Payments

Norway

Release 11i Feature Name Release 12 Feature Name Release 12 Product
Norwegian BBS Norwegian BBS Format Oracle Payments
Norwegian Telepay Norwegian Telepay EFT Format Oracle Payments

Poland

Release 11i Feature Name Release 12 Feature Name Release 12 Product
Polish Pekao Credit Transfers Format Polish Pekao Credit Transfers Format Oracle Payments
Polish Pekao Payment Order Polish Pekao Payment Order Format Oracle Payments
Polish Citibank MTMS EFT Format Polish Citibank MTMS EFT Format Oracle Payments

Portugal

Release 11i Feature Name Release 12 Feature Name Release 12 Product
Portuguese Checks / Remittances Portuguese Check Format Oracle Payments
Portuguese EFT File Portuguese EFT Format Oracle Payments
Portuguese EFT Remittance Letter Separate Remittance Advice Oracle Payments
Portuguese Bank Transfer Request Portuguese Wire Format Oracle Payments
Portuguese Direct Debit File Portuguese Direct Debit File Format Oracle Payments
Portuguese Direct Debit Letter Payer Notification format Oracle Payments

Spain

Release 11i Feature Name Release 12 Feature Name Release 12 Product
Spanish Transfer Magnetic Format Spanish Magnetic Format Oracle Payments
Spanish Check Format Spanish Check Format Oracle Payments
Spanish CSB32 Remittance Spanish CSB32 Remittance Format Oracle Payments
Spanish CSB58 Remittance Spanish CSB58 Remittance Format Oracle Payments
Spanish Direct Debit Magnetic Format (CSB 19) Spanish CSB 19 Direct Debit Magnetic Format Oracle Payments

Sweden

Release 11i Feature Name Release 12 Feature Name Release 12 Product
Swedish Bankgiro Inland Swedish Bankgiro Inland Oracle Payments
Swedish Bankgiro SISU Swedish Bankgiro SISU Oracle Payments
Swedish Bankgiro UTLI Swedish Bankgiro UTLI Oracle Payments
Swedish Postgiro Inland Swedish Postgiro Inland Oracle Payments
Swedish Postgiro Utland Swedish Postgiro Utland Oracle Payments

Switzerland

Release 11i Feature Name Release 12 Feature Name Release 12 Product
Validate Payment Batch Report Validation rules Oracle Payments
Swiss DTA Payments Swiss DTA Format Oracle Payments
Swiss DTA Accompanying Payment Letter to Bank Swiss DTA Accompanying Payment Letter to Bank Oracle Payments
Swiss SAD Payments Swiss SAD Format Oracle Payments
Swiss SAD Accompanying Payment Letter to Bank Swiss SAD Accompanying Payment Letter to Bank Oracle Payments
Swiss DTA Remittance Advice Separate Remittance Advice Oracle Payments
Swiss SAD Remittance Advice Separate Remittance Advice Oracle Payments