Every year, we’re faced with statutory requirements to send Year End Reports to the authorities. If we fail to file reports on time or report inaccurate information, we could face unnecessary penalties.
On top of that, these statutory requirements may change from year to year; here are some examples:
In the UK
Real Time Information, or RTI, is a new system that Her Majesty’s Revenue and Customs (HMRC) is introducing to improve the operation of PAYE. RTI has become mandatory for all employers from October 2013. Full details
Effective January 1, 2014, new rules will require all companies subject to tax in France and under audit by the French tax authorities to produce a file of all accounting entries lines per Legal Entity and per fiscal year in a prescribed electronic format. Full details
- Loi n° 2012-1510 du 29 décembre 2012 des finances rectificative pour 2012 (1)
- Arrêté du 29 juillet 2013 portant modification des dispositions de l’article A. 47 A-1 du livre des procédures fiscales relatif aux normes de copie de fichiers sur support informatique
In the US
The Social Security Administration has released Publication 42-014, EFW2C Tax Year 2013, v.4 – Specifications for Filing Forms Electronically (EFW2C), which contains changes to the fields of the RCE Record. Full details
Help is at hand!
Fortunately, Oracle issues statutory year end patches to help EBS customers meet these requirements.
Here are some examples from the HRMS Mandatory Patch List for R12.1 (See My Oracle Support Doc ID 1160507.1):
|South Africa||Gov. fiscal year ends Mar 31||17541003 ZA : Tax Audit report|
|Singapore||Gov. fiscal year ends Mar 31||
17651515 SINGAPORE HRMS CONSOLIDATED PATCH – PAT-IRAS FILE SPEC V9.0
|UK||Fiscal year ends Mar 31/Apr 5
Patch 17395845 YE13/14: REAL TIME INFORMATION CHANGES : CONSOLIDATED FIXES: NOV
|Australia||Fiscal year ends Jun 30
17314769 R121.AU.21 AUSTRALIA CUMULATIVE RELEASE
|New Zealand||Gov. fiscal year ends Jun 30
16976386 New Zealand cumulative Patch R121.NZ.09
|US and Canada||Gov. fiscal year ends – US Sep 30, Canada Mar 31
17955555 US & CANADA END OF YEAR 2013 STATUTORY UPDATE II FOR R12.1
E-Business Suite Release R12 – France Statutory Accounting Entries FEC (Fichier d’Ecritures Comptables) Audit File, 2013 (See My Oracle Support Doc ID 1591352.1):
|France||Gov. fiscal year ends Dec 31||17775329 ER: FRENCH ACCOUNTING ENTRIES AUDIT FILE|
Testing Statutory Patches
So how do you test these patches? Most companies follow one or more of the following approaches:
- Testing the specific area related to the patch (e.g. 1099 Filing in the US).
- Testing all the business processes related to the patch product family (e.g. HRMS or Finance).
- Full regression testing of the entire EBS system.
Which testing approach does your organization utilize? Please share your experiences with us in the comments box at the bottom of this post.Every Testing Approach has its Price!Whichever approach you take, you’re going to have to compromise somewhere:
- Analyzing 100% of your system will significantly lower the risk of encountering issues later on, but it’s very time consuming and costly.
- Testing only the patch related area or even the patch product family covers only a minor part of the impacted objects and puts your statutory filings at risk.
Through the analysis of hundreds of Oracle EBS systems, we’ve concluded that it’s almost impossible to identify the impact of a patch on an organization without an automated solution. Check out this infographic for more information.
So if you want to avoid making any of the above compromises, you need to identify exactly what you need to test. Check out patch impact automation solutions to identify the impact a specific Oracle statutory patch might have on your own Oracle EBS System.