Fonterra B:JDE Tax Localization & Integration
Engineered a comprehensive tax localization module within JD Edwards to bridge the gap between global ERP standards and Indonesian (DJP) tax regulations. Developed automated extraction logic to transform AR/AP data into compliant formats for e-Faktur integration, significantly reducing manual data entry risks and ensuring 100% regulatory compliance
Tech Stack
Overview
This project involved developing a specialized tax localization layer within JD Edwards to align global financial processes with the Indonesian Directorate General of Taxes (DJP) requirements. The goal was to bridge the gap between JDE’s standard AR/AP workflows and the mandatory e-Faktur / CoreTax reporting system, ensuring the client remained fully compliant with local tax laws.
Challenges/Problems
- Regulatory Non-Compliance: Standard JD Edwards modules lack native localization for Indonesia’s specific tax compliance, particularly the complex mapping of Transaction Codes and the generation of specific file schemas (XML/CSV) required for the DJP e-Faktur system.
- Data Fragmentation: A lack of synchronization between JDE transaction records and the DJP e-Faktur portal led to manual reconciliations, increasing the risk of tax penalties and administrative errors.
- Operational Inefficiency: Finance teams were forced to manually export data and reformat it in spreadsheets before uploading to government portals, resulting in significant time loss and “human error” risks.
Solutions
- Custom Localization Framework: Developed custom Batch Applications (UBEs) to manage and calculate tax-specific metadata—such as DPP (Tax Base) and VAT amounts—directly within the JDE environment. This included building automated mapping logic to generate compliant CSV and XML exports for seamless integration with DJP systems.
Key Impact
Automated the tax reporting workflow, eliminating 100% of manual data re-entry and ensuring full compliance with Indonesian tax authorities.