Contact us at +1.415.901.7500 or

Oracle EBS-Golden Tax Integration Questions Answered

Oracle EBS-Golden Tax Integration Questions Answered
Our recent webcast “Integrating Oracle EBS with China’s Golden Tax System” was a success with well over 50 people in attendance for the hour long event followed by a lively Q and A Session. As always, we’re happy to share a complete transcript to the question and answer period.Oracle EBS-Golden Tax Integration Questions Answered

Is there a Chinese translation that happens on the Golden Tax Adaptor before the data file is sent to the golden tax system? 

No, no translation takes place within the Golden Tax Adaptor.  You need to maintain information in Mandarin in Oracle EBS first, transfer the information into the Golden Tax Adaptor and then send it to the Golden Tax system.

How long does it take to deploy the ITC Bolt-On solution that you mentioned?

IT Convergence has developed and deployed this solution for several clients who needed to overcome the limitations of Oracle’s out-of-the-box Golden Tax Adaptor. Obviously every customer is unique, but depending on your requirements, it normally takes around 2 to 4 weeks to modify and test the program for any new implementation.

Is there a Golden Tax solution in Oracle 11.5.10 (11i) or only R12? Does the ITC Golden Tax Bolt-On solution work with 11.5.10?

Oracle’s Golden Tax Adaptor was introduced in Oracle R12 (R12.0.3 to be precise) so it is not available to those E-Business Suite users still on 11.5.10 or an earlier version of 11i.   You may check your Oracle EBS R12 version, as Oracle offers the enhancement for the different versions, such as for R12.1.2, R12.1.3, etc.

Fortunately, if you’ve got an Oracle 11.5.10 or earlier E-Business Suite instance supporting your China operations, IT Convergence’s Bolt-On Golden Tax solution supports it. Our solution supports both Oracle Applications 11i and R12.

Will Oracle E-Business Tax and Golden Tax Adaptor integrate with a third-party tax provider, like OneSource Indirect Tax?

Per our understanding, the OneSource Indirect Tax solution connects to Oracle’s standard tax interface for external tax vendors. It delivers tax determination in order to support cash flow processes.

Based on the above, this tool should be integrated with E-Business tax and Receivables. In that sense, it is indirectly integrated with China’s Golden Tax Adaptor.

Can you please explain the process of exporting credit memos from Oracle to the Golden Tax System?

Processing Credit Memos is similar to processing AR invoices, but there are some differences which you need to be mindful of.

In China there are two kinds of credit memos; one called Special VAT credit memo and another one called Common VAT credit memo.

To issue a Special VAT credit memo, you need to first fill in an application form and get approval from the tax bureau. The 16-digit number on the form needs to be put into the description field in the Golden Tax Adaptor. The remaining process is the same as handling AR invoices.

To issue a Common VAT credit memo, the Golden Tax Adaptor will verify the VAT invoice number of the AR invoice against which the credit memo credits. Afterwards, you will need to put the VAT invoice category and VAT invoice number into the description field in the Golden Tax Adaptor. The remaining process is the same as handling AR invoices

Do we still need to integrate with the Golden Tax System if we are not actually calculating tax in the E-Business Tax module and are just using that as a pass-through?

In the People’s Republic of China, the Golden Tax system  is mandatory and its stand-alone system is used to create and print Customer VAT invoices whenever you sell products or services to Chinese customers.

Even if you are not using Oracle E-Business Tax module to calculate tax, you must still use the Golden Tax System to create and print Customer VAT Invoices in the pre-printed form mandated by the Chinese government, and you can still integrate your Oracle EBS with the Golden Tax system.

As discussed during the webcast, we have two solutions available to comply with this requirement. IT Convergence’s China consulting team can help you analyse which option works better for your company after getting to know more of your business.

How do we determine the VAT invoice type when exporting data to Golden Tax System?

When configuring the Golden Tax Adaptor, we can map the AR transaction types to VAT invoice types.

ITC’s solution provides more options so that we can also derive VAT invoice types based on customer identification, instead of based on AR invoice type.

What information are users required to provide via Oracle to stay in full compliance with China’s Golden Tax System?

As we discussed in the webcast, we need the following information to fully comply with the Golden Tax system: Customer name, address, tax payer ID, bank information, invoice level information, invoice reviewer’s name and collector’s name. This information should be in Chinese.

Apart from these, we also need to set up the invoice amount limit, number of line limit, etc, in the Oracle system.

In China’s Golden Tax system, is customer information the same as the “Bill To” address?

Yes. From an Oracle out-of-the-box functionality perspective, a customer’s Bill To address will be transferred to the Golden Tax Adaptor and then into the Golden Tax System for invoice printing.

If you rely on IT Convergence’s Golden Tax solutions you can use address information based on you and your customer’s specific requirements.

You also need to keep in mind that Golden Tax VAT invoice requires data in Mandarin, so you need to consider how, when and where you will capture and/or translate that data into Mandarin. We can maintain the customer’s Chinese name on the “Alias” field and its Chinese address on the “Alternate Address” field.

How do you maintain banking information for the Golden Tax System?

Within the Golden Tax system you need to maintain bank name, bank branch name and bank account number for your customers. Bank name (or Bank Alternate name) and branch name (or Branch alternate name) information should be in Chinese.

How does the Golden Tax Adaptor handle deposit invoices?

For deposit invoices there is no VAT involved, so there is no VAT articulation with the Golden Tax System.  In Oracle Financials AR you can define the transaction type, and define which transaction can be linked to the Golden Tax System. So we can easily maintain and manage different invoice transaction types which will interface (or not) to the Golden Tax system.

The Golden Tax system customer registration address may be sent to a different address of the same customer. Will the mail address be visible in Oracle’s Golden Tax Adaptor?

Per Oracle’s out-of-box function, the Bill To address or alternate address (R12.1.2 new feature for golden tax) in the AR invoice will be interfaced to the Golden Tax Adaptor.

ITC’s Golden Tax solutions can also help you meet other business requirements, for example transferring a different address which is required by business to the Golden Tax System for VAT invoice printing.

More Information on China’s Golden Tax and Other Available Oracle EBS Solutions for China 

Configuring Oracle to interface with China’s Golden Tax System is just one of the requirements that Oracle E-Business Suite users in China will need to navigate. If you’re looking for more information on ERP solutions for China then we encourage you to visit the “Doing Business Globally” section of our white paper library, go through the China services section of our website or simply click here to fill out our Contact Us form to request one-on-one time with a member of our China services team.