Overview

Tax rules and regulations continue to increase in
complexity at a never-ending pace. Use tax audits
by states are increasing each year as states look
for additional revenue. The penalties for non-
compliance can be severe. Providing an
automated system that ensures compliance is
an increasingly important priority for users of
packaged software.

MSM Associates provides a solution to generate
use tax for Oracle Financials.  It is an automated
process that performs two main functions.  First,
the process calculates use tax for transactions
where no sales tax was charged.  Second, the
subsystem generates use tax accruals that are
sent to the General Ledger.  There are a number
of advantages to this offline approach for tax
calculation:



Extract Sources

Use Tax for Oracle Financials provides data
extracts from the following sources:

The Generic Spreadsheet Upload capability
provides a powerful tool to import transactions
from any source to calculate use tax and
generate use tax accruals sent to Oracle GL
module.
Description of Enhancements

The following describes the high-level changes to
allow customers to use Vertex and calculate tax
amounts in an offline mode with minimal impact
to daily processing and no changes to the
delivered Oracle product.

SUT Defaults – This custom form allows the user
to enter default values used for processing such
as default values for the generic spreadsheet
uploads.  Parameters to control which voucher
transactions can also be maintained in this form.

State Account Cross Reference –
To properly create journal entries for use tax
accrual at month-end, the correct natural GL
account must be known for each state or
province.  This form allows the setup of the
accrual portion of the journal entry.

Location Maintenance – The solution provides
the option of a separate maintenance function or
the use of DFFs for the storage of the Vertex
Geocode for each location.

Account Usage Code Cross Reference – This
form allows the user to link a user-defined usage
code to each GL account for AP transactions.  
This controls the taxability of the voucher
transactions entered in AP.

Transaction Maintenance - A new maintenance
panel over the results of the batch tax calculation
program allows the user to modify key fields that
impact taxability, such as Ship To location or
Usage Code. The user can also control which
use tax transactions are valid for posting to the
General Ledger.

Online Tax “What-If” Inquiry – This new online
panel allows the user to enter test transactions to
see the results from Vertex.