Oracle Billing and Revenue Management (Oracle BRM) is an end-to-end revenue management system used by many communications, IoT, SaaS, and media service providers. When it comes to managing the whole revenue lifecycle, Oracle BRM’s powerful configuration and customization capabilities make it a very good option to choose for any company operating in almost any field of activity or service.
In some previous articles we already discussed taxation-related challenges, especially in United States (“Working with U.S. Taxes in Tridens Monetization – Part 1”). In this article we will take a look at how we can deal with such challenges if we are using Oracle BRM.
We have multiple possible approaches to incorporate taxation in Oracle BRM:
- Using BRM Tax Codes file
- Best for applying simple flat taxes
- Customized taxation by modifying BRM policy opcodes
- BRM Taxation policy opcodes can be used to apply custom taxes which do not require the full capability of third-party tax providers
- Offline third-party tax software Vertex Sales / Communications Tax Q Series
- Allows complex taxation with multiple jurisdictions
- Online third-party tax provider services by modifying BRM taxation policy opcodes
- This innovative approach is possible due to Oracle BRM’s extensive customization capabilities and allows an online integration with third-party tax providers such as Avalara or Suretax
Integrating a Third-Party Tax Service Provider with Oracle BRM
We will focus on the approach which uses online tax provider calculation services in combination with Oracle BRM. We made a proof-of-concept implementation of this solution shown in the diagram “Using Third-Party Online Tax Calculation Services with Oracle BRM”.
To start with, it is necessary to configure a rating product in Oracle BRM correctly. It is of great importance to set the tax code for the product appropriately. The tax code must include all the necessary information, such as third-party provider specification, tax type, tax category, and tax service type. The BRM policy opcode PCM_OP_CUST_POL_TAX_CALC customization, developed by Tridens, then uses these data to generate a request for the Tridens Tax Gateway (we already talked about Tridens Tax Gateway in our article “Working with U.S. Taxes in Tridens Monetization – Part 2″). The Tax Gateway then returns data provided by online tax calculations provider in a unified format. Our customization in Oracle BRM then parses the received information and populates all necessary data in Oracle BRM internal data structures to allow BRM to perform the taxing of a rated event correctly.
Our proof-of-concept implementation has the following advantages in comparison to offline third-party tax provider software:
- Lower costs
- Is always up-to-date with the latest tax regulation changes in specific states (No software updates required)
- Possible to use various online tax calculations for different products if required
We must, however, also consider a disadvantage which is brought by using the online tax calculation solutions:
- Such a solution may not be suitable for large applications with a high number of requests per second and/or applications where low latencies are a requirement
If you would like to know more about using online tax calculations from third-party tax providers with Oracle BRM, feel free to contact us!