TAX RISK ADVISORY

Most Oracle Customers Are
Under-Accruing Use Tax

They Just Don’t Know It Yet.

If you run Oracle Fusion Cloud or Oracle E-Business Suite, there’s a high chance your sales and use tax is not being calculated the way you think it is.

Not because Oracle is broken. But because Oracle does not understand how your purchases are actually used.

No preparation required. No commitment. Just clarity.

This Is How Use Tax Gets Missed

We see the same patterns again and again. These are the red flags that usually signal material exposure.

  • Location Blindness

    Tax calculated based on ship-to address instead of the actual use location.

  • Vendor Inconsistency

    Vendors inconsistently charging tax with no validation on your receiving end.

  • Default Exemptions

    Services, software, freight, or MRO treated as non-taxable by default logic.

  • Manual Balancing

    AP teams making manual adjustments just to "make it balance" without fixing the rule.

Why This Is Risky to Ignore

Sales and use tax errors don’t fail loudly. They sit quietly in AP and P2P until:

  • An auditor asks for transaction-level support
  • A state questions under-accrued use tax
  • Finance can’t explain why accruals don’t reconcile
  • A one-time adjustment suddenly becomes material

By the time this shows up, options are limited - and expensive.

"Are we calculating tax correctly?"

We don’t start with system changes. We start by identifying what is being missed and why.

01

Identify

We determine if there is likely exposure and where uncertainty exists.

02

Root Cause

We isolate whether it’s a process gap, incorrect tax logic, or system behavior.

03

Remediate

Only then do we address the fix, whether via process change or tools like Vertex.

Note on Technology: In some environments, we help implement tools like Vertex or Avalara, but only after the tax issue is clearly identified. Technology supports the fix; it is not the reason you should call.

When Companies Usually Reach Out?

Conversations start when:

  • "We’ve never really validated use tax"
  • "We rely on Oracle defaults and vendor tax"
  • "AP adjusts tax manually"
  • "Audit questions keep coming back"

The Reality:

If any of these sound familiar, waiting rarely improves the outcome. Sales and use tax problems don’t resolve themselves. They stay hidden or surface at the worst possible time.

The First Step Is Simple

The cost of waiting is usually higher than the cost of knowing. If you’re not confident your Oracle environment reflects how your business actually uses what it buys, now is the right time to talk.