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Determination

ONESOURCE Determination 2023.5 Release Notes

Release highlights

Published: September, 2023
ONESOURCE Determination version 2023.5 includes bug fixes and introduces the following features:
  • Starting with the 2023.5 release, Enterprise Data Fabric (EDF) upgrades will be implemented for the tax calculation process. This will provide a high-availability, high performing system to our customers and will improve the performance of the data pipelines and data integration of the tax calculation service.
  • Custom currency rounding extended to include the U.S. Dollar (USD), Canadian Dollar (CAD), and Brazilian Real (BRL).
  • The Unified Logging page enhanced to include the contentId column.

New Features

The topics below describe features added with this release.
Tax Calculation Process Upgrades – Enterprise Data Fabric (EDF)
Starting with the 2023.5 release, ONESOURCE Determination will implement a series of tax calculation process upgrades to provide a high-availability, high-performing system to our customers. These enhancements will improve the performance of the data pipelines and data integration of the tax calculation service.
In the 2023.5 release, the enhancements we are implementing will:
  • Improve performance when we process large volumes of transactions.
  • Improve data recovery and restoration time in the event of outage or data loss.
  • Simplify the reversals process. Currently, when a customer submits a reversal request, the tax calculation service creates a reverse entry, which is returned to the customer. With this new enhancement, no reverse entry is returned to customers. Rather, an acknowledgement is returned and the reversal is reflected asynchronously in the reporting database, which the customer can validate in the reports.
Definitions
  • An explicit reversal request is when you send the reversal request by including Is Reversal = True (or Y) in your tax call.
  • An implicit reversal request is when you submit the same invoice transaction, which triggers the reversal of an existing record with the same invoice.
Behavior of Explicit Reversal Scenarios
The following includes current and future behavior information for an explicit reversal scenario where original invoice does not exist:
  • Current behavior - We return the following responses:
  • With the EDF upgrade - In the situation when an explicit reversal request could not find a matching record, we will return only the second part of the original response and the reversal will be reflected asynchronously in the reporting database, which the customer can validate in the reports.
Explicit Reversal Validations in Reports
After the EDF upgrade, you can complete one of the following to validate explicit reversals in the reports:
  • Create a custom report. Add the
    Reversal
     column to the template. Select
    Reversal = Y
     to filter the dataset.
  • Use the US Document Details standard report. Select
    Yes
     in the
    Reversal
     column to filter the dataset.
Custom Currency Rounding (941964, 922471, 909352 and 922175)
The Document Rounding feature, which allows currencies to go through the penny-pinching process as part of rounding, is now extended to the following currencies:
  • U.S. Dollar (USD)
  • Canadian Dollar (CAD)
  • Brazilian Real (BRL)
The Currency Rounding page (select
Configuration
,
Currency Data
 then
Currency Rounding
 to access) now includes these three currencies. Previously, these currencies were controlled at the system level. Beginning with this release, these currencies can be controlled at the company level.
By default, penny pinching is performed for these currencies within aline in the invoice so that the total of the unrounded tax amount and the total of the rounded tax amount match within the line. This configuration now allows penny pinching to be turned off (if you want) at the company level.
Unified Logging Enhancements and OCI Enablement (913483. 921534, 939351 and 936683)
The Unified Logging feature (select
Tools
 then
Administration
 to access), logs and displays all the messages provided in a tax calculation output or response. This page is now enhanced to include the contentId column. The
contentId
 contains the invoice number of the transaction, which can then be used as a filter to display a specific invoice and its related messages.
For customers who are hosted on the OCI environment, the Unified Logging feature is now available for REST tax calculation service transaction logs. This was previously enabled for only AWS cloud environments for the AMER and EMEA regions.
Oil and Gas - Zone and Transaction Logic Path for Custom OLTM (843026, 916256 and 916270)
For oil and gas related authorities, you can create a custom Operating License Type Mapping (OLTM) when the standard OLTM is not available. When creating a custom OLTM:
  • A
    Zone
     field was added. This field displays the zones related to the authority. When selected, the standard or custom buyer and seller operating license types applicable to the selected zone become available.
  • The
    Transaction Logic Path Lookup
     field replaces the
    JE Mapping
     field. This field displays a pop-up window that has all the transaction logic paths (TLPs) related to the Motor Fuel or Movement transaction types. The ID related to a selected TLP data row is what displays in this field.
Low Value Goods Regime for Malaysia Sales Tax (938662 and 938660)
In Malaysia, the Sales Tax (Amendment) Bill of 2022 requires online sellers to register for the Low Value Goods (LVG) sales tax regime. This new regime encompasses both B2B and B2C transactions (Transaction Type = LV), which will be subject to taxation. ONESOURCE Determination now supports the LVG sales tax regime.
Pakistan Provincial Sales Tax - Islamabad Tax Type Change (903578)
The Zero-Rated Export (ZE) tax type was added to the logic for Pakistan Provincial Sales Tax content. This tax type is applied for cross-border transactions that trigger the Islamabad Provincial Sales Tax.
Brazil - UoM under Rules - Consumer Goods (913435, 920606, 839109, 924130, 922340, 928919, 930960, 936959 and 926992)
This feature enables the system to retrieve the Unit of Measure (UoM) from the rule. This allows for the correct calculation of tax for the consumer goods segment in Brazil.
New standard UoMs were added to support Brazil content and transactions. They are available:
  • On the Units of Measure page (to access, select
    Configuration, Reference Data then Units of Measure
    ).
  • In the
    Authority Unit of Measure
     drop-down list on the Rule Code page for a rule code (to access, select a rule code on the
    RULES
     tab for an authority).
  • The
    UoM
     column on the Document Line Information page for the Model Scenario feature (to access, select
    Tools
    ,
    Tax Tools
    ,
    Model Scenario
    , the
    SCENARIO DETAILS
     tab then Document Line Information).
  • The
    Unit of Measure
     drop-down list on the
    TRANSACTION INFORMATION
     tab on the Document Line Information page for the Model Scenario feature (to access, select
    Tools
    ,
    Tax Tools
    ,
    Model Scenario
    , the
    SCENARIO DETAILS
     tab,
    Document Line Information
    ,
    Line Data
     then the
    TRANSACTION INFORMATION
     tab)
UoM Considerations
  • For the rule creation, you must indicate the corresponding UoM for the rules where the product unit price is informed when the legislation requires. (For the current release: Brazil ICMS PMPF and Brazil ICMS Pauta. For future releases: Brazil PIS Pauta, Brazil COFINS Pauta and Brazil IPI Pauta.)
  • The conversion is completed at the rule level when the UoM informed by the source (XML input) is different for different authorities or rules.
  • Conversion starts only if the UoM is entered in the rule triggered for the scenario. This is why it is mandatory to add a UoM against a given product unit price in the content).
  • The STANDARD CONVERSION TABLE has the common conversions available with the different possibilities of UoM according to government publications.
  • The CUSTOM CONVERSION TABLE is for including uncommon UoMs.
Conversion Logic Considerations
The conversion logic begins only if the UoM is entered in the rule triggered for the scenario.
The following verifications occur because the system needs to convert the product unit price to proceed with all the tax calculations:
  • If the UoM in the XML input matches the UoM in the triggered rule then the tax is calculated according to the logic of the stated authority.
  • If the UoM in the XML input does not match the UoM in the triggered rule then the system finds the new product unit price converted. The system looks for the corresponding conversion from the UOM SOURCE to the UOM RULE in the CUSTOM CONVERSION TABLE. If no custom conversion was created then the system looks for the corresponding conversion from the UOM SOURCE to the UOM RULE in the STANDARD CONVERSION TABLE.
Messages for Handling UoM Conversions
  • The system displays the following message and stops the calculation if the request does not include a LINE.QUANTITIES.QUANTITY.UOM but the rule applied has a product UoM attached to the product unit price:
    UOM is not found in the request
  • The system displays the following message if the request includes a LINE.QUANTITIES.QUANTITY.UOM, the rule has a product UoM attached to the product unit price, and the system successfully converts the LINE.QUANTITIES.QUANTITY.UOM from the request to the product UoM in the rule:
    UOM conversion from {X} to {Y} successfully applied
Brazil - PMPF Type 2 - Consumer Goods (351993)
This feature addresses the Brazil ICMS-ST calculation as per the PMPF Type 2 authority for the consumer goods segment. The PMPF price is a value determined by the government and is used to calculate the ICMS-ST.
The application of
Type 2
 under the TaxCalcType is as follows:
  • The system determines the PMPF total value. This value is considered if it is included in the XML input. Otherwise, the value is the PMPF price (under the rule) multiplied by the quantity (included in the XML input). The system also considers whether the UoM from the XML input matches the UoM in the triggered rule.
  • The system compares which value is greater then uses it as the ICMS-ST and FCEP-ST taxable basis to calculate the gross amount (Formula A) or the PMPF total value (Formula B).
Formula A
  • Brazil ICMS-ST taxable basis amount calculated by GROSS AMOUNT = (((Gross amount + IPI) x IVA*) + (Gross amount + IPI)) x ICMS-ST taxable basis percentage
  • Brazil ICMS FCEP-ST taxable basis amount calculated by GROSS AMOUNT = (((Gross amount + IPI) x IVA*) + (Gross amount + IPI)) x FCEP-ST taxable basis percentage
Formula B
  • Brazil ICMS-ST taxable basis amount calculated by:
    PMPF total value = (PMPF total value x ICMS-ST taxable basis percentage)
  • Brazil FECP-ST taxable basis amount calculated by:
    PMPF total value = (PMPF total value x FECP-ST taxable basis percentage)
XML Output
In the XML output, the system returns the IVA or PMPF according to the calculation used in the CALC_BASIS_MODE.
  • If the ICMS-ST and FCEP-ST were calculated via the gross amount then the XML output looks like:
    <CALC_BASIS_MODE>IVA</ CALC_BASIS_MODE>
  • If the ICMS-ST and FCEP-ST were calculated via the PMPF total value then XML output looks like:
    <CALC_BASIS_MODE>PMPF</ CALC_BASIS_MODE>
Company Admin Options
PMPF Type 2 was addressed along with the
Brazil - Alternative Taxable Basis
 and
Brazil - PIS and COFINS Taxable Basis
 company admin options.
Legislation
The following legislation supports this requirement:
  • Normative Tax Procedure 32/2022 – published by Parana State
  • Normative Instruction 31/2022 - published by Ceara State
Brazil - PMPF Type 3 and Trava Type 1 - Consumer Goods (352013)
This feature addresses the Brazil ICMS-ST calculation as per the PMPF Type-3 authority for the consumer goods segment. The PMPF price is a value determined by the government and is used to calculate the ICMS-ST.
The application of Type 3 under TaxCalcType is as follows:
  • The system determines the PMPF total value. This value is considered if it is included in the XML input. Otherwise, the value is the PMPF price (under the rule) multiplied by the quantity (included in the XML input). The system also considers whether the UoM from the XML input matches the UoM in the triggered rule.
  • The system determines the Trava amount using the following formula:
    Trava amount = PMPF total value x ICMS Trava taxable basis percentage.
  • The system compares which value is greater then uses it as the ICMS-ST and FCEP-ST taxable basis to calculate the gross amount (Formula A) or the TRAVA amount (Formula B).
Formula A
  • Brazil ICMS-ST taxable basis amount calculated by GROSS AMOUNT = (((Gross amount + IPI) x IVA*) + (Gross amount + IPI)) x ICMS-ST taxable basis percentage
  • Brazil ICMS FCEP-ST taxable basis amount calculated by GROSS AMOUNT = (((Gross amount + IPI) x IVA*) + (Gross amount + IPI)) x FCEP-ST taxable basis percentage
Formula B
  • Brazil ICMS-ST taxable basis amount calculated based on Trava amount validation = (PMPF total value x ICMS-ST taxable basis percentage)
  • Brazil FECP-ST taxable basis amount calculated based on Trava amount validation = (PMPF total value x FECP-ST taxable basis percentage)
XML Output
In the XML output, the system returns the IVA or PMPF according to the calculation used in the CALC_BASIS_MODE.
  • If the ICMS-ST and FCEP-ST were calculated via the gross amount then the XML output looks like:
    <CALC_BASIS_MODE>IVA</ CALC_BASIS_MODE>
  • If the ICMS-ST and FCEP-ST were calculated via the PMPF total value, then the XML output looks like:
    <CALC_BASIS_MODE>PMPF</ CALC_BASIS_MODE>
Company Admin Options
PMPF Type 3 was addressed along with the
Brazil - Alternative Taxable Basis
 and
Brazil - PIS and COFINS Taxable Basis
 company admin options.
PMPF Type 3 works correctly only if the Trava authority is triggered.
Legislation
The following legislation supports this requirement:
  • Port SRE 51/2022 – published by São Paulo State
  • Normative Act 25/2021 – published by Piaui State
  • RICMS Alagoas State – Art. 432, §4º and Normative Instruction 03/2021, Art. 1º, §2º.

Fixes

The topics below describe previously known issues that have been fixed with this release.
Italy Document Rounding Issue (938697 and 938699)
An issue was identified with rounding for transactions in Italy where a single invoice contained up to 1,100 lines. The issue is resolved. The rounding logic for Italy was tested for invoices with up to 3,500 lines. For transactions in Italy, the tax engine rounds at the invoice level after the tax calculation in the following steps:
  1. ONESOURCE Determination calculates the sum of unrounded tax amounts and rounds the sum.
  2. ONESOURCE Determination compares the sum of the of the rounded tax amounts with the sum of the unrounded tax amounts (rounded) to determine the penny difference.
  3. When a penny difference is found, ONESOURCE Determination adjusts the lines with the highest gross amounts (regardless of sign) or the first applicable lines (if all lines have the same gross amount).
Separately, an issue was identified whereby the tax engine did not apply the penny adjustments when the penny difference was more than $1.00 or less than -$1.00. The issue is resolved.
Buyer VAT ID Not Populated for Ex Works Delivery Terms (863792)
When both the seller registration number and the buyer registration number were passed for purchase transactions with the delivery terms of Ex Works, the system messages displayed the seller registration number but not the buyer registration number. This issue is resolved. Both the buyer and seller registration numbers are applied and displayed in the output application messages.
POTT with More Characters Throwing Exception (915375)
A discrepancy was observed between SOAP and REST requests in the display of the Point of Title Transfer (POTT) in the output when passing the delivery terms in lowercase. This was corrected so that the value is not case sensitive.
In addition, the system only accepts the abbreviated versions of the POTT, which are I for In Transit, O for Origin, and D for Destination.
Tax Calculation Fails when FIPS Code Is Unavailable (921505)
For transactions that are audited, the system stores FIPS codes if they are available. FIPS codes are a part of the content data and are not essential for tax calculations. An issue was identified where tax calculations failed for France export scenarios when the FIPS codes were not available for transactions that were being audited. This issue is now fixed.
Brazil - ICMS-ST and FCEP-ST Taxable Basis Not Computed by Gross when both Conditions Are Equal for PMPF Type 2, 3 and 4 (941198)
The taxable basis was updated for PMPF Type 2, 3 and 4 conditions.
Brazil - ICMS-RD ST Should Not Trigger for Non-Taxpayer, Seller Transaction with the Business Supply Flag Set to No when CEST Is Passed Under a Qualifier (911956)
ICMS-RD-ST was updated for not triggering in the following situation: non-taxpayer, seller transaction with the Business Supply flag set to No when CEST is passed under a qualifier.
Certificate Manager Configuration and Portal Admin Console Pages Upgraded to Angular NG (341297 and 341239)
The Certificate Manager Configuration and Portal Admin Console pages were upgraded to the latest Angular version for improved performance, enhanced security, overall stability, and reliability.
Companies Configuration Upgraded to Angular NG (398147)
The Companies page was upgraded to the latest Angular version for improved performance, enhanced security, overall stability, and reliability.
Standard Authorities and Custom Authorities Configuration Upgraded to Angular NG (831776 and 831779)
The Standard Authorities and Custom Authorities pages were upgraded to the latest Angular version for improved performance, enhanced security, overall stability, and reliability.
Filtering Capability on Add and Edit Pages of Certificate Manager Reports and Notifications Corrected for the Data and Time Filter Criteria (945913, 933568, 928437, 932840 and 951207)
The Reports and Notifications Filters sections were returning inconsistent results while using date and/or time related filter criteria. This affected the Preview Report page, the Recipients List feature and the order in which those filters where displayed after saving. Filtering capability was corrected on both pages and is now working as expected.

Known Issues

There are no known issues in this release.

This article applies to:

  • PRODUCT: ONESOURCE Determination,ONESOURCE Indirect Tax

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