TURKEY – NEW SOLUTION TO MATCH WITH COMMON SOLUTION

INTRODUCTION :
 Turkey VAT is configured in Cluster-1, keeping the focus on TCC ( Tax classification Code ).

 In cluster-2 the TCC is plainly kept as the Business user choice and the rest ebtax solutions are
based on ebtax application internals and there definitions.

 SIT, UAT we have re-configured to be in align with the cluster-2 design, but the focus was still
retained with TCC as it has a compounding tax OTV which is the core function of Turkey VAT and
it has given required results.

Considering the delay of go live, allowed time to revisit and shift the focus from TCC to cluster-2
core design , internals and their definitions.
1. CUSTOMER SELF-BILLING Definition is to shift from TCC to SELF-BILLING PARTY
CLASSIFICATION.
2. OTV compound tax calculation is to shift from TCC from the items to PRODUCT-
CLASSIFICATION.

The areas to be changed to accomplish the above solution

SELF-BILLING.

 Party classification self-billing to be defined - SB_TR_3548

 Add this to Party classification determining factor SELF BILLING
 Change the customer sites with the new party classifications.( TO BE CHECKED WITH ROBERT )
 Define new determining factor ( 2 )
 Define new conditions sets ( 5)
 Change the rules at status and Taxable basis.

OTV COMPOUNDING TAX CALCULATION.

INVENTORY LEVEL
 Add values to descriptive flexfield - PPG_EBT_VAT_RATE_CLASSIFICATION
o OTV_RES, OTV_THIN, ITEM_EXE
 Add values to Category codes
 Add values to Category sets
 Assign OTV items to OTV Category sets respectively , (RES, THIN )( TO BE CHECKED WITH TOMAS)

VAT PRE-PROCESSOR LEVEL

 Change the logic of identifying the items for OTV from TCC to Item category codes. Earlier it is
picked up from transaction level TCC. Then convert the Quantity from any UOM to KG and
Populate to ASSESIBLE VALUE field.
EBTAX LEVEL.

 TAX FORMULA – NOTHING TO CHANGE. ( BOTH OTV AND COMPOUNDING)

 TR_OTV_QTY - APPLICABILITY RULES – TO BE CHANGED ( 2 RULES )
 TR_OTV_QTY - RATE RULES – TO BE CHANGED ( 2 RULES )
 TR_OTV_QTY – TAXABLE BASIS RULES – TO BE CHANGED ( 2 RULES )
 TR_VAT – PLACE OF SUPPLY RULES NO CHANGE.
 TR_VAT – APPLICABILITY RULES NO CHANGE.
 TR_VAT – STATUS RULES – TO BE CHANGED ( 2 RULES )
 TR_VAT – TAXABLE BASIS RULES – TO BE CHANGED ( 2 RULES )

So, total 14 core rules to be changed with determination factor sets and condition sets. This is the core
change and it has to be tested thoroughly.

ADDITIONAL CHANGES AT VAT PRE-PROCESSOR LEVEL

1. Free Supply - Add SHIP_TO= Turkey, condition in VAT preprocessor (this will align TR VAT
preprocessor with EBT rules)
2. CREDIT tax codes – Current logic is based on SO type = "RETURN CREDIT ONLY REF - 3548" and
applicable for TCC = TR_DOM_CREDIT_STD only. Additional logic to be added for TCC =
TR_DOM_CREDIT_RED ( Kristina to discuss with user , currently user decides to assigns as TCC )

Conclusions.
 This changes to common solution from specific solution of Turkey is looked at as there is time
for go live ( The postponement of go live, gave the leverage to look at this )
 The change SELF BILLING Can be taken up as it needs few changes after sufficient testing.
 The Compounding tax for OTV is the core design logic change and it has to be taken up
o After through testing.
o The Transition should take place after the month closing of AR module during BLACK
OUT – CUT OVER TIME.
 The only drawback of this solution is user loose visibility, as they had visibility clearly in cluster-1
and it requires user Training.
The conditions set at TR_OTV_QTY

Applicability rule
OP-OTV_RES_DOM_GOODS_01
OP-OTV_THIN_DOM_GOODS_01
OP-OTV_THIN_DOM_GOODS_04
OP-OTV_RES_DOM_GOODS_04

Rate Rule

TR_DOM_OTV_RES_02
TR_DOM_OTV_THIN_02

Taxable basis

Remove the current rules

 OTV_CALCULATIONS_PER (remove)
 “AR_DUMMY” (Only Assignment)

The conditions set at TR_VAT

Place of supply

TR_POS_TCC_SET

Applicability

Disable “TR_DM_AP_NOT_APPLICABLE”.
TR_CL2_BILL_TO_APPLY
TR_CL2_BILL_FROM_APPLY
TCC_APPLICABLE

Status

TR_DOM_OTV2, this is disabled change the order to 81.

OP-OTV RES DOMESTIC GOODS_02
OP-OTV THIN DOMESTIC GOODS_02
STS_AR_GC_SB_TR_3548
TR-DOM_CL2_EHQ_01 (GLOBAL INPUT TAX RULES)

Taxable basis

TR_DOM_OTV_RES_02
TR_DOM_OTV_THIN_02
STS_AR_GC_SB_TR_3548-RES – DFS to be created ‘’ DET_TR_SBILL
STS_AR_GC_SB_TR_3548-THIN