BizTech Blog

Although yet to be confirmed, Oracle is expected to release version R12.2 of it’s eBusiness Suite in October 2011. BizTech has compiled a list of the Tax, Legal and Regulatory updates that are expected to be added, amended, or removed in this latest release.

India: Enhanced Bill of Entry Functionality

The Bill of Entry functionality has been enhanced to allow users to:

• Create bill of entry records referencing documents such as Purchase Orders, Releases, and Advanced Shipping Billing Notices
• Account for custom duty taxes at the tax type level
• Assign taxable basis based on landed cost or assessable value
• Calculate taxable basis using exchange rates specified by customs.

India: Tax Import to Receivables and Payables

Users now have the ability to import legacy application computed taxes or use Oracle Financials for India to calculate taxes for receivables and payables transactions on import.

Brazil: Federal SPED Regulation – Accounting SPED Updates

The following updates are available:

• Identify accounts within the account hierarchy to exclude from register I050 (Chart of Accounts)
• Exclude ‘STAT’ currency code journals from reporting
• Support 19 positions for numeric and amount values
• Provide Create or Change Date identifier as required under register I100 (Cost Center)
• Automatic defaulting of Taxpayer ID (i.e. CNPJ/CPF) when defining Third Party Participants
• Generate digital transcript signature (register I151) for register I150 (periodic balances) for the Bookkeeping Type B

This update has also been back-ported to the following releases:

Brazil: Fiscal SPED – Electronic Invoice Layout Update (Manual 4.01)

The following attributes are generated and/or captured in order for Fiscal Partners to communicate Electronic Invoices to Fiscal Authorities:

• Numeric Access Key Code generated by the Electronic Invoice Attributes window
• Wagon and Ferry Identification captured at the Shipping Transaction and Electronic Invoice Attributes window
• Industry Specific Attributes on Receivables Transaction Workbench and open interface
• Additional Attributes for Multiple Towing Vehicles on Shipping Transactions, Receivables Transaction Workbench and open interface.

This update has also been back-ported to the following releases:

Brazil: Fiscal SPED – Support for PIS/COFINS (EFD-Digital Fiscal Bookkeeping)

To address legal resolution 1052/2010 for PIS/PASEP and COFINS taxes, effective April 2011, the following existing windows have been enhanced to capture additional information:

• Sales Order Lines
• Electronic Invoice Attributes
• Tax Code and Rates
• Customer Account Sites
• Inventory Master Items
• Item Templates

Additionally, the Autoinvoice program has been enhanced to import the ‘Service Execution Date’ from the Receivables Interface table.

This update has also been back-ported to the following releases:

Israel: Combined VAT File (Ichud Oskim)

As of January 2010, Israeli companies falling under “Ichud Oskim” legislation must report VAT transactions in a single file, as opposed to individual files.

The Israeli VAT File – Related to 835 report has been modified to generate a combined VAT file. Users can inform the Tax Group Registration Number (Ichud Oskim) and up to ten legal reporting entities. The report can still be used to generate the VAT file for an individual company.

This update has also been back-ported to the following releases:

Israel: Withholding Tax File – 856 (Legal Changes 2010)

The Withholding Tax File – 856 has been updated for 2010 reporting effective March 2011.

• Row 60, position 17-17 Explanation for the Tax File in IRS column now includes a new value for foreign suppliers
• Row 70, position 53-63 now includes the Supplier Liability column and position 64-73 now includes the Company Phone Number.

This update has also been back-ported to the following releases:

Portugal: Billing Software Certification

Oracle Financials for Portugal has been modified to comply with the new Portuguese Legislation published in the Decree no 363/2010, of the 23rd June Series I, no120.

The following requirements are addressed:

• Provide a system that allows the registration of sales invoices or similar documents through an asymmetric RSA encryption algorithm and a private key known only by the software provider
• Generate the encrypted signature for all applicable Receivables transactions
• Generate the signature by concatenating and encrypting all required data elements
• Store the required signature-related elements for subsequent SAF-T reporting
• Store the required certification information to meet invoice printing requirements.
• Provide access controls to the program with user authentication
• Maintain an audit trail of changes to tax data related to original information.

This update has also been back-ported to the following releases:

Spain: VAT Legislation: Modelo 349 ESL/EPL Changes

The Spanish Tax Authority has published required changes to the existing electronic report Spanish Inter-EU Operations Summary Magnetic Format (Modelo 349).

The changes impact the following:

• Report Layout
• Monthly reporting support
• New Transaction Key reporting

This update has also been back-ported to the following releases:

United Kingdom: Local Authority IFRS Revaluation Loss and Impairment Enhancements

By March 31, 2011 UK local authorities are to account for their fixed assets in accordance with guidelines as detailed in the Code of practice on local authority accounting in the United Kingdom 2010/11 based on International Reporting Standards, released by CIPFA in December 2009, also referred to as the ‘Code’. The move to the IFRS-based Code from the UK GAAP-based SORP resulted in changes to the accounting entries related to revaluations and impairments for property, plant and equipment assets.

The following revaluation and impairment functionality has been provided in Oracle Assets to address the fixed asset revaluation and impairment requirements for tangible property, plant and equipment assets, as per the ‘Code’:

• Revaluation Loss (new feature)
• Reversal of Revaluation Loss (new feature)
• Consumption of Economic Benefit (CEB) Impairment (changed feature).

U.S. Federal: New FACTS II Edits

Federal Agencies’ Centralized Trail-Balance System (FACTS II) edits have been added/removed to comply with Treasury changes:

• Edit 14: Retirement of Reclassification Edit 14
• Edit 15: The ending balance recorded in USSGL account 4157 cannot exceed the ending balance in USSGL account 4397
• Edit 16: The ending balance recorded in USSGL account 4158 cannot exceed the ending balance in USSGL account 4398
• Edit 17: USSGL Accounts 4134/4144 only apply to TAFSs where USSGL accounts 4871 and/or 4971 are reported
• Non-Federal Exception Edit: A Non-Federal Exception Allowed checkbox has been added to the Define Treasury Account Symbols window. USSGL Accounts 4221/ 4251/4230/4233/4212 can only have balances for Treasury Account Symbols with the Non-Federal Exception Allowed checkbox checked.

Additionally, the FACTS II Edit Check Detail Report has been modified to include the status and supporting detail for the above edits.

This update has also been back-ported to the following releases: