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Oracle E-Business Tax: Vertex Q-Series and Taxware Sales/Use Tax System Implementation Guide
Release 12.1
Part Number E13632-03
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Installing and Implementing the Vertex Q-Series or Taxware Sales/Use Tax System

Installing the Tax Service Provider Product

The latest Oracle certified versions of tax service providers products are available prepackaged with Oracle E-Business Suite Release 12. The product database objects of each tax service provider reside on the Oracle installation CD as a single zip file. A one-step automated process facilitates the installation without any user intervention, which replaces the multi-step process previously required but still supported as an alternative.

Prerequisites

Setup for Prepackaged Tax Service Provider Integration

Tax service provider database server-side software, residing on the Oracle CD, is manually installed after the Oracle E-Business suite Release 12 is successfully installed. To find the version of the latest prepackaged tax service provider software, review the documentation included with your software. The prepackaged installation process will automatically upgrade the existing database server-side tax service provider software, if any. The main components of prepackaged tax service provider software are:

Where appropriate, Oracle may certify a more recent version of tax service provider software than the version included with the Oracle CD. Users can download the prepackaged tax service provider software from My Oracle Support. Contact your Oracle support representative for more information.

Note: This section does not describe the process of the installation and upgrade steps required by tax service providers. Contact tax service provider support for the details.

Complete the following steps in the order shown to implement the prepackaged version of a tax service provider product:

  1. Run the installation driver script.

  2. Set profile options.

  3. Set up lookup codes for tax exemption reason.

  4. Set up provider-specific tax regime and taxes.

  5. Set up service subscriptions.

  6. Install client-side tax service provider software.

  7. Load tax jurisdictions and rates.

  8. Set up tax accounts.

  9. Turn on address validation.

  10. Set up jurisdiction codes and other optional fields (optional).

  11. Verify the tax service provider implementation.

Step 1 Run the Installation Driver Script

The installation driver script (UNIX Shell script for UNIX-based systems) unzips the tax service provider software zip file, installs the database server-side software, and integrates tax service provider software with E-Business Tax. After a successful installation of Release 12, run the driver script at the command prompt as follows:

cd $ZX_TOP/bin
zxtxptnr.sh <parameter1> <parameter2> <parameter3> <parameter4> <parameter5> <parameter6>

This table contains parameters passed to the driver script:

Parameter Parameter Name Required
parameter1 Provider Name Yes
parameter2 System User (Database) Yes
parameter3 Provider Schema Name Yes
parameter4 Tablespace Name for Provider Schema Yes
parameter5 Temporary Tablespace Name for Provider Schema Yes
parameter6 SQL*Loader Executable (sqlldr) for loading sample Taxware Data Yes

The parameters in this table are required and must be passed in the order listed. An example driver script run command based on this table for Vertex is (note that Taxware has an additional parameter):

$ZX_TOP/bin/zxtxptnr.sh vertex system vertex USER_DATA TEMP

Other relevant information for the driver script includes:

Step 2 Set Profile Options

Set the relevant profile options for your tax service provider. See: Setting Profile Option Values, Oracle E-Business Tax Implementation Guide.

Step 3 Set Up Lookup Code Tax Exemption Reason

When storing tax exemptions in E-Business Tax, use the Lookups window to set up the Tax Exemption Reason lookup code. The lookup type for this lookup code is ZX_EXEMPTION_REASON. These reason codes are used by tax service providers to determine the exemption reason. The reason codes are restricted in the number of characters that are used by a provider. See: Setting Up Lookup Codes, Oracle E-Business Tax Implementation Guide.

Important: Vertex exemption reasons are restricted to one alphanumeric character. Define Vertex exemption reasons so that the first character of the Exemption Reason Name is unique.

Important: Taxware exemption reasons are restricted to two alphanumeric characters. Define Taxware exemption reasons so that the first two characters of the Exemption Reason Name are unique.

Step 4 Set Up Provider-Specific Tax Regime and Taxes

To implement a tax service provider, you need to create a tax regime and taxes. You typically create three taxes: state, county, and city. See: United States Sales and Use Tax, Oracle E-Business Tax Implementation Guide.

Step 5 Set Up Service Subscriptions

After creating a tax regime, create service subscription for your operating unit or legal entity to the tax regime you just created for your tax service provider. If your installation uses multiple organizations for United States, you may use a tax service provider only for some specific operating units or legal entities. See: Setting Up Service Subscriptions, Oracle E-Business Tax User Guide.

Step 6 Install Client-Side Tax Service Provider Software

Install all necessary client-side tax service provider software. Refer to the user guides of your tax service provider.

Step 7 Load Tax Jurisdictions and Rates

Obtain and load the tax jurisdictions and rates from your tax service provider. Load this data into both the tax service provider system and E-Business Tax.

Step 8 Set Up Tax Accounts

Define tax accounts in E-Business Tax. If you define separate tax liability accounts for each ship-to state, it is easier for you to reconcile total tax amounts for each state in General Ledger with tax service provider reports. See: Setting Up Tax Accounts, Oracle E-Business Tax User Guide.

Step 9 Turn on Address Validation

Ensure that address validation is turned on before creating customer addresses. See: Real-Time Address Validation, Oracle Trading Community Architecture User Guide.

Step 10 Set Up Jurisdiction Codes and Other Optional Fields

You can optionally implement descriptive flexfields and use the standard fields available in Oracle Receivables windows to extend the basic functionality of this integration. Use the Warehouse Jurisdiction Code, Salesperson Jurisdiction Code, and Customer Addresses Jurisdiction Code to support tax calculations using Ship To, Ship From, Point of Order Origin, and Point of Order Acceptance addresses.

You can set up tax exemptions and product tax exceptions in E-Business Tax. See: Setting Up Tax Exemptions, Oracle E-Business Tax User Guide and Setting Up Tax Exceptions, Oracle E-Business Tax User Guide for more information.

You can set an option in the User Defined Receivables Activity Information descriptive flexfield to indicate whether you want to post adjustment information to the tax service provider audit table.

Step 11 Verify the Tax Service Provider Implementation

Perform these steps to verify that your tax service provider is successfully integrated:

  1. Create customer addresses.

    Verify that the customer addresses are validated against the loaded geography data.

  2. Create a sales order.

    Verify that the estimated tax is calculated using the tax service.

  3. Import a sales order with AutoInvoice.

    Verify that tax is calculated using the tax service provider on invoices imported from Oracle Order Management or other feeder systems.

  4. Create an invoice using the Receivables Transaction Workbench.

    Verify that tax is calculated using the tax service provider on manual invoices created in Oracle Receivables.

  5. Update or delete an invoice line.

    When you update or delete an invoice line, tax amounts should reconcile to your tax service provider tax reports.

  6. Credit an invoice.

    When you create credit memos, tax amounts should reconcile to your tax service provider tax reports.

  7. Copy an invoice.

    Verify that tax is calculated using the tax service provider on the copied invoice.

  8. Create an exempt order.

    Verify that Oracle Receivables exemptions are used in calculating tax with the tax service provider.

  9. Adjust an invoice.

    Verify that tax adjustments reconcile with your service provider tax reports. Only approved adjustments of type Tax are reflected in your provider tax reports, which lets you control which write-offs have recoverable sales tax from the state, county, and city.

Setup for Non-Prepackaged Tax Service Provider Integration

Complete these steps in the order shown to implement a tax service provider product:

  1. Install database server-side software.

  2. Provide grants to the APPS schema.

  3. Recreate synonyms.

  4. Set profile options.

  5. Set up lookup code tax exemption reason.

  6. Set up provider-specific tax regime and taxes.

  7. Set up service subscriptions.

  8. Create index on Vertex audit file.

  9. Install client-side tax service provider software.

  10. Load tax jurisdictions and rates.

  11. Set up tax accounts.

  12. Turn on address validation.

  13. Setup jurisdiction codes and other optional fields (optional).

  14. Verify the tax service provider implementation.

Step 1 Install Database Server-Side Software

Install the latest Oracle-certified version of your tax service provider product. Provider-specific database objects should all be created in a separate schema.

Step 2 Provide Grants to the APPS Schema

Once a service provider software is installed, give the following grants to the APPS schema in order to execute the service provider APIs:

Vertex

CONNECT <Vertex schema>/<Vertex password>
GRANT ALL ON QSU TO <APPS Schema>
WITH GRANT OPTION;
GRANT ALL ON GEO TO <APPS Schema>
WITH GRANT OPTION;
GRANT ALL ON REGPRERETURNSTBL TO <APPS Schema>
WITH GRANT OPTION;

Taxware

CONNECT <Taxware schema>/<Taxware password>
GRANT ALL ON TAXPKG_GEN TO <APPS Schema>
WITH GRANT OPTION;
GRANT ALL ON TAXPKG_10 TO <APPS Schema>
WITH GRANT OPTION;
GRANT DELETE ON TAXAUDIT_HEADER to <APPS Schema>;
GRANT DELETE ON TAXAUDIT_DETAIL to <APPS Schema>;
GRANT DELETE ON TAXAUDIT_TAX to <APPS Schema>;
GRANT DELETE ON TAXAUDIT_JURIS to <APPS Schema>;

Step 3 Recreate Synonyms

Once the packages are installed, you must recreate the following synonyms to point to the correct service provider packages:

Vertex

CONNECT <APPS_Schema>/<APPS_Password>
DROP SYNONYM ZX_TAX_VERTEX_QSU;
DROP SYNONYM ZX_TAX_VERTEX_GEO;
DROP SYNONYM ZX_TAX_VERTEX_AUDIT;
CREATE SYNONM ZX_TAX_VERTEX_QSU FOR <Vertex Schema>.QSU;
CREATE SYNONM ZX_TAX_VERTEX_GEO FOR <Vertex Schema>.GEO;
CREATE SYNONM ZX_TAX_VERTEX_AUDIT FOR <Vertex Schema>.REGPRERETURNSTBL;

Taxware

CONNECT <apps schema>/<apps password>
DROP SYNONYM ZX_TAX_TAXWARE_010;
DROP SYNONYM ZX_TAX_TAXWARE_GEN;
DROP SYNONYM ZX_TAX_TAXWARE_AUDIT_HEADER;
DROP SYNONYM ZX_TAX_TAXWARE_AUDIT_DETAIL;
DROP SYNONYM ZX_TAX_TAXWARE_AUDIT_JURIS;
DROP SYNONYM ZX_TAX_TAXWARE_AUDIT_TAX;
CREATE SYNONYM ZX_TAX_TAXWARE_010 FOR <Taxware Schema>.TAXPKG_10;
CREATE SYNONYM ZX_TAX_TAXWARE_GEN FOR <Taxware Schema>.TAXPKG_GEN;
CREATE SYNONYM ZX_TAX_TAXWARE_AUDIT_HEADER FOR <Taxware Schema>.TAXAUDIT_HEADER;
CREATE SYNONYM ZX_TAX_TAXWARE_AUDIT_DETAIL FOR <Taxware Schema>.TAXAUDIT_DETAIL;
CREATE SYNONYM ZX_TAX_TAXWARE_AUDIT_JURIS FOR <Taxware Schema>.TAXAUDIT_JURIS;
CREATE SYNONYM ZX_TAX_TAXWARE_AUDIT_TAX FOR <Taxware Schema>.TAXAUDIT_TAX;

Step 4 to Step 7

See: Step 2 to Step 5 in the Setup Checklist for PrePackaged Tax Service Provider Integration for details of these setup steps.

Step 8 Create Index on Vertex Audit Table (Vertex only)

During the rollback phase of AutoInvoice, the program deletes invalid transactions from the Oracle Receivables interface tables. You need to create an index for the TRANSUSERAREA column in the REGPRERETURNSTBL Vertex table so that Vertex can identify the invoices to delete much more quickly.

To create this index:

  1. Login to SQLPLUS in the Vertex Schema.

  2. Enter the following SQL command:

    CREATE INDEX <INDEX_NAME> ON
    REGPRERETURNSTBL (TRANSUSERAREA);

    where <INDEX_NAME> is unique within the Vertex schema.

Step 9 to Step 14

See: Step 6 to Step 11 in the Setup Checklist for PrePackaged Tax Service Provider Integration for details of these setup steps.