Alternate tax rate area: a step ahead in JDE Tax processing

The way that companies grows and expand themselves must be aligned with their capability to process bigger amounts of data and deal with new legal compliances. It is fair to expect that ERP logics evolve in the same way and could help in getting this goal easily achieved.

As one of the most sensitive topics appears to be the tax compliance which frequently requires a lot of manual work to ensure an accurate and correct reporting for every period.

As part of the effort to improve the way VAT is assigned for transactions in JDE, Oracle Enterprise One 9.1 Update 2 introduced a new base software feature that provides an alternate method of assigning the appropriate Tax Rate/Area in Intra-EU trade scenarios. It is called Alternate Tax rate area and you might be wondering why this is so important but do not get nervous as you will get your answers if you keep reading. 

Generally, transactional Tax rate area was only coming from one of the following options: the Business Unit involved in the transaction, Customer master or Supplier master. While Customer Master is designed to allow line of business processing (system maintains one customer number for several companies and therefore different tax rate areas available), Supplier Master holds same supplier information for all companies and this might be leading to get wrong tax rate areas for the transaction. Most common scenarios are EU transactions (Companies with multiple Tax IDs, EU customers registered for VAT in multiple EU countries)

Alternate tax rate is optional and can be turned on for specific companies as well as countries. In summary, this feature will enable you to define the default tax rate/area to use based on a combination of the following fields:

• Company
• Ship From Country Code
• Ship To Country Code
• Transaction Source
• Customer or Supplier Number

As a conclusion, this new feature is a big step ahead in tax rate area assignment for JD Edwards Enterprise one offering a wide range of options to the user to set up how tax area is defaulted without falling into any customised solution.

Request a DEMO: Alternate tax rate in JD Edwards 9.2