5External Tax Partner Integrations

This chapter contains the following:

Oracle ERP Cloud integration with comprehensive transaction tax management solutions provided by tax partners is currently available for tax content, tax calculation, and tax reporting. Customers can leverage these partner transaction tax solutions independently or together based on different transaction tax requirements across market segments and industries.

Individual tax partners can offer transaction tax solutions in the following areas:

Tax Partner Content

  • Offerings may include geographies, tax jurisdictions, tax rates, and taxability rules for products and services.

  • Updates are available on a periodic basis for statute changes.

Tax Partner Calculation

  • Cloud-to-Cloud integration of the Oracle ERP Cloud and a Partner Tax Application Cloud for performing transaction tax calculation.

  • Neither tax software nor tax integration components are required on the Oracle ERP Cloud.

  • Streamlined data flow between Oracle ERP Cloud and a Partner Tax Cloud.

Tax Partner Reporting

  • Signature ready returns for automatic transaction tax filings in specific countries.

  • Tax partner can manage the entire tax compliance function from tax returns generation to payment remittances.

The following table lists cases of customer implementations using tax partner offerings:

Tax Implementation Variation Customer Tax Solution Uptake

Case 1: Partner Tax Content + Oracle Fusion Tax Calculation

Case 1 uptake:

  • Partner Rapid Implementation Content (Geographies, Tax Rates, Taxability Rules, or a combination of these content areas)

  • Oracle Fusion Tax

Case 2: Partner Tax Content + Partner Tax Reporting + Oracle Fusion Tax Calculation

Case 2 uptake:

  • Partner Rapid Implementation Content (Geographies, Tax Rates, Taxability Rules, or a combination of these content areas)

  • Partner Automatic Tax Returns Generation using BI Publisher Extracts

  • Oracle Fusion Tax

Case 3: Partner Tax Content + Partner Tax Reporting + Partner Tax Calculation

Case 3 uptake:

  • Partner Rapid Implementation Content (Geographies and Tax Rates)

  • Partner Automation Returns Generation using Partner Tax Repository

  • Partner Tax Calculation Application

However, each individual tax partner is different with regard to specific transaction tax solutions they can offer and tax implementation cases that they can fulfill in practice.

You must follow up with an individual tax partner to understand the level of coverage and capabilities of their respective transaction tax offerings, including any prerequisite configuration.

Oracle Fusion Tax Configuration for External Tax Partner Calculation

Integration with external tax partners to perform transaction tax calculation requires a minimal configuration of Oracle Fusion Tax.

Tax Configuration for External Tax Partner Calculation

If you are using an external tax partner calculation application with Oracle ERP Cloud, then along with content and configuration document delivery from an individual tax partner, you must perform the following configuration steps:

  1. For countries that impose transaction taxes at a level lower than a country level, obtain the required master geography data from the selected external tax partner.

  2. For countries wherein a transaction tax calculation and compliance responsibility exists, upload the geography data into the Oracle Fusion Trading Community Architecture geography hierarchy.

    Note: The specific tax partner selected for transaction tax calculation must provide the required master geography data for upload into the TCA geography hierarchy per the TCA upload template specifications. An individual tax partner's jurisdiction based tax rates are dependent on a valid and complete collection of master geography data. The master geography data uploaded into the TCA geography hierarchy enforces the address validation on location entities such as transaction bill-to locations, transaction ship-to locations, customer site locations, and supplier site locations.
    Caution: Ensure that the geography data is accurate and complete because the TCA geography hierarchy can only support one source of master geography data. This means that once the geography data is uploaded from a specific tax partner, the geography data from another source or tax partner cannot be loaded. When using a tax partner application, you should not create master geography data separately as it could lead to data corruption.
  3. In addition to any required master geography data, tax partners providing a third-party tax calculation application must provide the relevant tax regime-to-rate flow content that can be imported for the applicable countries. The tax regime-to-rate flow content must have the following fundamental entities to maintain referential integrity of the mandatory attributes of a tax line:

    • Tax Regime: Upload a tax regime for which tax partner services are used to calculate tax for each individual country of interest.

    • Tax: Upload all of the taxes that can be imposed within a country tax regime. You can have multiple taxes for a specific tax regime.

    • Tax Status: Upload at least one tax status for each tax. Each tax must have at least one default tax status.

    • Tax Jurisdiction: Upload at least one tax jurisdiction for each tax. Qualified tax partners provide tax jurisdictions and tax rates content file for loading into Oracle Fusion Tax.

    • Tax Rates: Upload at least one tax rate code for the default tax status. Each tax status requires a default tax rate code. Qualified tax partners provide both, jurisdiction and nonjurisdiction based default tax rates for upload.

  4. On the Manage Tax Regimes page, go to the Configuration Options tab and subscribe the applicable business unit or units to the relevant country tax regime or regimes for partner tax calculation integration.

  5. Enable all taxes under the relevant country tax regime for both Simulation and Transaction purposes.

  6. Register the tax partner in Oracle ERP Cloud using the following web service:

    Partner Tax Profile Service (Operation name: registerTaxContentPartner)

    The register Tax Content Partner web service operation creates the tax profile for the third-party tax partner to support tax content and calculation services. You can access the web service using the following URL:

    https://<host>.<domain>:<port>/finTaxConfigParty/PartnerTaxProfileService?wsdl

    Refer to the following table while registering a Tax Content Partner:

    Parameter Name Description Parameter Mandatory Type

    Party Name

    Third-party tax partner name.

    In

    Yes

    java.lang.String

    Provider Type Code

    Primary use of the tax content provided by a third-party tax partner. Valid values are Content, Services, or Both.

    In

    Yes

    java.lang.String

    Return

    The status that is returned.

    Out

    java.lang.Boolean

    Note: Alternatively, you can register a tax partner in Oracle ERP Cloud by using the Service Subscriptions tab on the Manage Tax Regimes page. On the Service Subscriptions tab, click Create. Enter the code and the name of the service provider. In the Type field, from the list, select Both. Click Save and Close.
  7. On the Manage Configuration Owner Tax Options page, from the Actions menu, select Manage Tax Partner Integration in a Spreadsheet.

  8. The Manage Tax Partner Integration ADFdi spreadsheet opens. Enter the tax partner name, connection user name, connection password, and end point URL.

    Caution: A tax partner is responsible for their registration in Oracle ERP Cloud. If a tax partner registration was not completed, the tax partner name is not available for selection in the Manage Tax Partner Integration ADFdi spreadsheet.
  9. On the MyWorkbook menu, click Upload to load the settings.

    Note: If the Manage Tax Partner Integration ADFdi spreadsheet does not open, download the latest ADFdi plug-in from the Download Desktop Integration Installer selection in the Tools section of the Oracle ERP Cloud Navigator menu.
  10. From the Manage Configuration Owner Tax Options page, click Create.

  11. On the Create Configuration Owner tax options page, populate the Configuration Owner, Application Name, Event Class, and Start Date fields.

  12. Select Calculate tax by tax provider as the Regime Determination Set. The Enable Tax Partner link becomes active.

    Note: You must obtain the list of supported applications and event classes for tax partner calculation from the selected individual tax partner. Also, the tax partners with an existing tax calculation application integration with Oracle ERP Cloud should provide the necessary configuration documentation for the currently supported applications and event classes.
  13. Click the Enable Tax Partner link. The Tax Partner Configuration window opens. The tax partner currently registered for tax calculation purposes is displayed.

    Note: Only a tax partner previously registered for tax calculation is displayed in this window.
  14. For the registered tax partner, select the Enabled check box, and click OK.

    Caution: Tax partners are responsible for registering themselves on the Oracle ERP Cloud. If a tax partner registration was not completed, the individual tax partner is not available.
  15. Click Save and Close.