VAT returns and EC registers reconciled with source data in Fusion, market by market.
A European parts distributor supplies trade customers from multiple European locations. Running on Oracle Fusion Cloud ERP, its indirect tax team needed reporting that keeps pace with a high volume of cross-border order lines. itax4apps reports on tax determined by the Oracle Tax Engine and recorded in Fusion, per legal entity, and reconciles return lines with the underlying source data.
Published · Last reviewed
- Multiple
- European locations in scope
- Near-real-time
- Reporting cadence
- Fusion
- Single source of truth
The problem
Distribution at this scale produces a large number of low-value cross-border lines: trade orders, drop shipments, returns and credit notes across several countries and legal entities. Each market has its own VAT return format, EC listing rules and filing calendar.
The team assembled its periodic returns from Fusion exports and spreadsheet workings. The figures could be produced, but explaining a single line back to the underlying transaction took time, and discrepancies tended to surface during the close.
Our approach
- 1
Map the reporting obligations per entity
We recorded, for each legal entity in scope, the countries in which it files, the applicable return and listing formats, and where the tax authority asks for detail that a standard Fusion report does not present.
- 2
Connect itax4apps to Fusion
itax4apps reads the tax data recorded in Oracle Fusion Cloud ERP directly, without middleware or a parallel data model, and without custom development by the customer's IT team. Tax determination stays in the Oracle Tax Engine.
- 3
Reconcile the returns and the EC registers
The VAT Summary dashboard, the VAT return and the EC Sales and EC Purchase registers are produced from the same recorded data and reconciled with it, with VIES validation on the counterparties.
- 4
Move review earlier in the period
Because reporting is near-real-time, the team reviews exceptions during the period rather than after it, and every figure remains traceable to its source document in Fusion.
Results
- One consistent reporting and reconciliation layer across the European entities in scope, in place of per-country spreadsheet workings.
- Reconciliation between the VAT return, the EC registers and the data recorded in Fusion available on demand.
- Exceptions reviewed during the period rather than at the close.
- An audit trail from return line back to source document for the returns in scope.
Outcomes
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