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The proper calculation of excise taxes in the oil and gas industry is a complex task. In each process, there are many different factors that influence the tax rates: Products and blends (including bio fuel blends). Origins and destinations. Effective dates and exemptions. Branded and unbranded products. Gross or net volumes.
In North America, the different tax rates are regulated by the Federal Government as well as State Governments and Local Governments. Independently of each other, the jurisdictions adjust the rates several times a year. This presents oil and gas companies with a major challenge: To keep an overview and stay up to date in this ever-changing environment, where every small inaccuracy or error can have big consequences.
How does the Avalara Tax Connector 1.0 work?
Implico has partnered with tax specialist Avalara to build a connector from SAP ERP to the proven tax tool AvaTax Excise. AvaTax Excise enables relevant tax determination and calculation for the O&G industry's many-faceted processes.
The Avalara Tax Connector 1.0 is integrated into SAP's standard sales and purchasing pricing functions. The package provides a fully functioning pricing procedure with all tax conditions and the connector logic. A separate configuration tree allows for specific custom requirements. Also, it enables the users to adjust interface mappings.