Oracle provides the solutions in different forms like Add-on localization, Product localization or they define solution in global capability.
It’s part of the standard oracle installation. It can be found in oracle guides for Europe, Asia,America and separate ones for big countries like Brazil and India. Production localization will not be present for all the countries.
To explain, example of Product localization can be Argentina.
Argentina have requirements like
1)Stat Requirement – In Argentina companies have to report balances to Government.
2) Payment processing– It’s a legal requirement in the country to print payment information in a specific format.
3)Vat – Country requirement for calculating municipal tax and Vat Reporting like AFIP’s RG 1361 Regime.
4) Withholding Tax calculation– Country Requirement for Withholding certificate and satisfying Turnover Tax Withholding regime. These all Requirement in oracle is been take care as part of Product Localization and there is no add-on for Argentina.
If oracle is not able to provide the country specific requirement, oracle provides it through Add-on localization. Add-on localization is an extension to Oracle, patches are provided by oracle to achieve this. Oracles don’t charge anything to their vendor for these patches.
To explain, example of Add-on localization can be Germany.
Germany have requirements like
1) Z4 and Z5A Reports– Companies in Germany have to report all statistical, outstanding and liabilities to the Deutsche Bundesbank.
2) TAX -Companies needs report like VAT Declaration and VAT Detail Reconciliation Reports. These country specific requirements Oracle Can satisfy, if add-on localization patch is applied. Oracle Provide product and add-on localization for approx. 50 countries only.
*Note Before you apply the patch make sure the patch is compatible with other patches already present in the system and you have answer for below questions.
1) Scope of the Business in the country.
2) List down if the solution you are looking for are achieved by product or add-on localization.
3) Do you really need a patch if reporting is being taken by third-party system.