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Q&A Transcript from the Oracle ERP Solutions for China Webcast

Q&A Transcript from the Oracle ERP Solutions for China Webcast
Last week dozens of companies from the US, EU, Latin America, and Asia joined our webcast “Overcoming the Oracle ERP Localization Challenge in China.” As always, we’re now happy to share a complete transcript of the webcast’s Q and A session.

 

Q: How many tech guys are there in your Shanghai office and what is the total number of people in Shanghai as well?
A. We have approximately 6 or 7 dozen consultants in Shanghai and 15-20% of our consultants resources are technical.

 

Q:
We have many custom forms/reports. I’m assuming all these need to be translated? Is this a typical task/cost?
A. Yes, it is a typical task and of course there’s a cost associated with this. Only custom forms/reports that are related to Statutory or localization requirements need to be translated into Mandarin. However, depending on the English proficiency level of your users, you may need to translate more forms and reports for operational purpose.

 

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

A. China’s Golden Tax System is a mandatory and it is a stand-alone system for creating and printing Customer VAT invoice when you sell your products or services to domestic customers in China.

If you are not using the E-Business Tax module to calculate tax, you’re still required to use the Golden Tax system to create and print Customer VAT Invoice in the pre-printed form mandated by the Chinese government and you can still integrate your Oracle E-Business Suite solution with China’s Golden Tax system.

 

IT Convergence China has a package solution you can employ to accomplish this and you’ll only need make some modifications to fit your environment.

 

Q: Is there any translation in to Mandarin that happens in Golden Tax Adaptor before the XML report is sent to Golden Tax system?
A. Golden Tax Adaptor doesn’t provide any translation functionality. You must translate data or capture in Mandarin Chinese before sending it to the Golden Tax System.
For more information on China’s Golden Tax System, please visit our white paper library’s section on Doing business globally.
Q:
You mentioned a “Lite MLS” available in Oracle R12. Is that a patch that we can request from Oracle, similar to how you would request existing MLS?
A. Your Oracle Apps DBA will need to enable this “Lite MLS” or “NLS” solution. You will not need to download a patch from Oracle.

 

Q:
Does “Lite MLS” mean you have English UI but still will allow you to enter Chinese Data and save the data into the database?
A. Yes that’s right, but you still need to enable UTF8 character set as well.

 

Q:
We now use toll manufacturers. I am assuming this is somewhat a common practice. The outsourced manufacturing module is not yet available from Oracle, correct? How is this handled?
A. Oracle R11i has already provided an outside processing solution, and in Oracle Applications Release 12, Oracle has the big enhancement – the Chargeable Subcontracting new feature.
If Oracle standard functionality still can’t meet your key business requirements, another option is to tailor existing Oracle EBS functionality, and IT Convergence’s China Consulting Services practice has done this successfully for customers in the past.

 

Q:
In your presentation, do you mean we must use the account code list defined by the China accounting standard? We cannot use the same account code in the global COA (Chart of Accounts)?
A. No, the corporate account codes in the global COA normally do not meet China’s local reporting requirements.

 

One common solution is to set up the secondary ledger with Chinese mandatory account codes in order to meet the China statutory requirements. Also IT Convergence China has delivered alternate solutions to meet this requirement based on the actual client situation and Oracle environment.

 

Q:
For a business that has global Shared Services, what is considered a best practice when deciding whether to use China GAAP or US GAAP in the Primary Ledger for their China Implementation?
A. Based on the global shared services model, we assume that your company will use a single global COA. A global COA with US GAAP in your primary ledger that will comply with global standard and facilitate global/regional shared service operation, and a statutory COA with China GAAP in your secondary ledger will meet local statutory requirements.

 

For more information on US-China GAAP differences as they apply to an ERP system, please see our white paper “Bridging The GAAP: Differences Between US and China GAAP Requirements.”

 

Start Your Oracle ERP Project in China Off on the Right Foot

 

Rolling out or upgrading the Oracle E-Business Suite to support operations in China can be a daunting challenge, but it is one that you can overcome.

 

In the event that you missed our webcast, you still have a number of options for getting your Oracle ERP project in China off to a good start. You can:
You can also request a free, 60 minute “China Impact Assessment” by clicking here to fill out our Contact Us form.