India Local Inventory

This chapter covers the following topics:

Miscellaneous Transactions Overview

You can use the Miscellaneous Transactions to register effect of Inventory movements on Excise Registers. You can record Inventory Issues and Receipts to and from production using Miscellaneous Issue/Receipt (RG Update) and the respective Excise Inventory Registers are updated with these transactions.

Inventory & WIP Transactions Overview

Oracle Financials for India supports certain transactions to track movement of Excise Goods. Whenever there is a Transaction using Excise goods is created from the following features supported by Base Application, then Oracle Financials for India updates Excise Quantity Registers - RG 1 in case of finished goods, RG 23 A for raw materials and RG 23 C Part 1 for capital goods. Following is a list of such transactions and their impact on Excise Registers:

Transaction Type RMIN CCIN FGIN CGIN OTIN
Miscellaneous Receipt RG Update RG 23A Part 1 RG 1 RG 1 RG 23C Part 1 NA
Miscellaneous Issue RG Update RG 23A Part 1 First RG 23A Part 1, then RG 1 RG 1 RG 23C Part 1 NA
Cycle Count Adjustment. RG 23A Part 1 RG 23A Part 1 RG 1 NA NA
Physical Inventory Adjustment. RG 23A Part 1 RG 23A Part 1 RG 1 RG 23C Part 1 NA
Move Order Issue RG 23A Part 1 RG 1 RG 1 RG 23 C Part 1 NA
WIP Component Return. RG 23A Part 1 RG 1 RG 1 NA NA
WIP Assembly Completion. RG 23A Part 1 RG 1 RG 1 NA NA
WIP Assembly Return. RG 23A Part 1 RG 1 RG 1 NA NA
WIP Negative Component Issue. RG 23A Part 1 RG 1 RG 1 NA NA
WIP Negative Component Return. RG 23A Part 1 RG 1 RG 1 NA NA
WIP Scrap Transaction. RG 23A Part 1 RG 1 RG 1 NA NA
Staging transfer of a sales order RG 23A Part 1 RG 1 RG 1 NA NA

Organization Information

Defining VAT Journal Sources and Categories

Journal Sources need to be defined to transfer VAT Related Accounting entries to General Ledger.

VAT GL Entries created from PO-Receiving Transactions, Source would be 'Purchasing' and Category would be 'Receiving India'.

Value Added Taxes on Transaction

This section provides details on the implication of Value Added Taxes on transactions.

VAT Defaulting & Calculation

VAT Taxes default on following documents

Current Tax defaulting and calculation capabilities of Oracle Financials for India Tax Engine can handle these requirements. Tax defaulting and calculation happens based on Tax Setups. Appropriate setup of Tax Codes, Tax Categories with Precedence and Item Categories will ensure appropriate Tax defaulting and Calculation.

Added Tax Recovery Process

VAT Taxes applicable to a Purchase Transactions can be recovered to set-off the VAT Liability arising from the Sale of Goods arising in the course of intra-state trade. This section provides details of the VAT Recovery process.

The new VAT recovery enhancement supports recovery of taxes at various intervals and with variable recovery amount over each installment. With this enhancement, you can also default the first installment terms and details of other subsequent installments. For detailed information, please refer to Define Claim Terms in the Oracle Financials for India Implementation Guide.

Claim VAT - During Receipt creation

VAT Tax Amounts included in the Purchase transaction can be recovered on Receipt of VAT Invoice from the Supplier. This document can be received either with the Receipt of Material or at a later stage. If the document is received along with the material then, the user has an option to enter the VAT Invoice details by opening the Claim Details window through the Receipts India Local window.

To open the Claim Details window while creating the Receipt, click on Claim VAT on the Receipt India Local screen.

If you have any Tax modifications pending, click ‘No’. On clicking ‘Yes’ Claim Details will open.

The field wise description of the form is given below for ready reference.

Field Description Description
Receipt Header Block In this block you would see the List of Receipts that meet your query criteria. In case you have opened this Form from Receipts India Local Screen, only the current Receipt would appear in this block.
In this block you can view Total of VAT Recoverable Amount. Of which how much is recovered, the VAT Invoice details would appear in this Block
Claim Status VAT Claim status would be displayed here.
Following would be the distinct statuses:
1.Not Claimed: This value would appear if none of the Receipt lines are processed
2. Full Claimed: This status would appear if VAT on all the lines are claimed.
3. Partial Claimed: This status would appear when only some of the lines are claimed.
4. Non Claimable: This status would appear when all the lines are not eligible for claim and all of them are marked as not claimable.
Receipt Number Receipt Number is displayed here
Recoverable Amount This field reflects the Total of Recoverable VAT Tax amounts applicable to the Receipt.

Important: All Tax Types Assigned to the VAT Regime would be considered as VAT Taxes.
Recovered Amount This field displays the Total of VAT Amount Recovered so far.
In the following cases Recovered Amount would not be equal to the Recoverable Amount:
1. When you have processed claim for any of the Receipt Lines.
2. When only some of the Receipt lines are Recovered
3. Based on the claim terms only a part of the VAT Amount is recovered
Invoice No. This field would display the VAT Invoice Number.
In the following scenarios, no value would be displayed in this field:
1. You have not specified VAT Invoice Number for any of the fields
2. More than one VAT Invoice Number has been specified for the Invoice Lines.
Invoice Date VAT Invoice Date is displayed here. The date would be displayed only when the VAT Invoice Number is displayed.
Party If the VAT Invoice is received from a Supplier who is different from the PO supplier, you would enter the Party on the Receipt Lines. Such Party would be shown in this field. However, if this value is not distinct for all lines, the field would not display any value.
Such Party would be shown in this field.
However, if this value is not distinct for all lines, the field would not display any value.
Party Site The Site corresponding to the VAT Supplier Site would be displayed here.
If this value is not distinct for all lines, the field would not display any value.
Total Lines Displays Number of Receipt lines.
Lines W/O VAT Details Displays lines without VAT Invoice Details
Query Lines Block Use this block to query for specific Receipt Lines.
Item Class Select a Item Class from the LOV only when you would like to view and process lines of a specific Item Class
Item Name Select a Item Name from the LOV only when you would like to view and process lines of a specific item.
Lines W/O VAT Details Check this box only when you would like to view lines that do not have VAT Invoice Number and Date.
Claim Status Select a specific Claim Status from the LOV. All lines with the matching status would be selected.
Query Lines Click this button to Query all Lines with values matching those entered in this block
Populate Defaults Block Specify values here that should be defaulted on all Receipt Lines that are being queried.
Processing Action Select a processing action that should be stamped on all lines that are queried.
You can select from the following options:

  1. Claim: This implies that the lines will be claimed in the next claim process.

  2. Not Claimable: This status indicates that the lines will not be eligible for claim.

  3. Pending: By marking lines as pending, you are indicating that these lines would remain in pending status and would be separated from the claim process.
Invoice No. Specify a value that should be stamped on to the Invoice Number field of all selected lines
Invoice Date Specify a value that should be stamped on to the Invoice Date field of all selected lines
Party This field displays the PO Vendor Name. If the Vendor providing the VAT Invoice is different from the PO Vendor then, select appropriate value here.
Party Site This field displays the PO Vendor Site. If the Vendor Site providing the VAT Invoice is different from the PO Vendor/Site then, select appropriate value here.
Populate Defaults Click this button to populate all the selected lines with the values entered in this block
Receipt Lines All Receipt Lines with matching query criteria would be displayed here
Item Name Item Name is displayed here.
Item Class Item Class as assigned for the combination of VAT Regime and Item would be displayed here
Claim Status Claim Status of the Line would be displayed here. If the status is not populated using Populate Defaults block, user needs to specify the status for each line.
Following are the details of each claim status:

  1. Not Claimed: This implies that the line is eligible for claim process. But is not yet claimed.

  2. Not Claimable: This status indicates that the line is not eligible for claim.

  3. Partial Claimed: Implies that the line is partially claimed.

  4. Full Claimed: Indicates that the line has been completed processed.
Processing Action In this field, select from one of the following processing action.
1. Claim: This would imply that the lines would be claimed in the next claim process.
2. Not Claimable: This status would indicate that the lines would not be eligible for claim.
3. Pending: By marking lines as pending, you are indicating that these lines would remain in pending status and would be separated from the claim process.
Claim Term Displays the default Claim Term. User has an option to change this until the line has been processed for Claim.
Invoice No. Specify The VAT Invoice Number here.
Invoice Date Specify a Invoice Date here.
Party This field displays the PO Vendor Name. If the Vendor providing the VAT Invoice is different from the PO Vendor then, select appropriate value here.
Party Site This field displays the PO Vendor Site. If the Vendor Site providing the VAT Invoice is different from the PO Vendor/Site then, select appropriate value here.
Recoverable Amount This field reflects the Total of Recoverable VAT Tax Amounts applicable to the Receipt Line.

Important: All Tax Types Assigned to the VAT Regime would be considered as VAT Taxes.
Recovered Amount This field displays the Total of VAT Amount Recovered so far.
In the following cases Recovered Amount would not be equal to the Recoverable Amount:
1. When you have processed claim for any of the Receipt Lines.
2. When only some of the Receipt lines are recovered
3. Based on the claim terms only a part of the VAT Amount is recovered
Net Quantity This value displays Receipt Quantity net of Returned and Correction Quantity.
Receive Qty. Quantity received is shown here. This is before correction and returned quantity.
Correct Rcv. Quantity Correct of Receive Quantity is displayed here.
RTV Quantity Quantity returned to Supplier is displayed here
Correct RTV Qty. This field displays Correction to quantity returned to Vendor
[ ] Enter line-specific additional detail and Save.
Tax Details Tab This tab displays Tax Amount details.
Only taxes of the Type assigned to the Regime Registration are displayed here
Tax Type Tax Type is displayed here.
Tax Name Tax Name is displayed here
Recoverable Amount Amount of Tax that can be recovered is displayed here
Recoverable Amount This field displays the Tax Amount that is already recovered
Installment Details Tab This tab displays the Installment Details.
Installment No. Displays Sequence Number; Starting with 1 and incremented by 1 for each record
Scheduled Date Displays the Date on which the record would be available for VAT Recovery
Installment Amount Displays the Equal Installment Amount that would be eligible for recovery as on the scheduled date
Status Displays the Claim Status of the line. If the installment is claimed then, the Status would be ‘Claimed’. If the installment is not yet claimed, the Status would be set to ‘Not Claimed’

Claim VAT After Creating Receipt

If the VAT Invoice details are not entered while creating the Receipt, the option is to enter these details by accessing the Claim VAT screen through the Menu Option. The Options available would be the same as those when the form is Opened through the Receipts localized screen. However, here the user has an option to query for Multiple Receipts based on the options in the query-find screen.

Field Description Description
Regime The value in this field would be “Value Added Tax”
Organization Displays the current Organization from the profile
Location Select the Location from the LOV
Receipt Type Select from the following Values
PO: Purchase Receipt
RMA: Customer Receipt
ISO: Internal Receipt
Party Select a Supplier Name here
Receipt From Date Specify a date here. This would restrict the Receipts to those created after this Date
Receipt to Date Specify a Date here. This would restrict the Receipts to those created before this Date
Claim Status Select a Claim Status from the LOV
Following are the details of each claim status
1. Not Claimed: This implies that the line is eligible for Claim Process, but is not yet claimed.
2. Not Claimable: This status would indicate that the line is not be eligible for Claim.
3. Partial Claimed: Implies that the line is partially claimed.
3. Full Claimed: Indicates that the line has been completed processed.
Item Class Select an Item Class from the LOV. Only those Receipt Lines with this Item Class specified here would be fetched
Receipt Number Specify a specific Receipt Number here. Only lines related to the Receipt would be returned

VAT Manual Entry

Manual Entry Transactions for VAT may be used for passing Adjustment entries (both VAT Repository / Accounting) for VAT Recovery / VAT Liability transactions done in the P2P and O2C Cycles. VAT Recovery / VAT Liability, VAT Payment transactions can also be created directly using this window

This functionality is provided as a means for handling exceptional scenarios in your business process that necessitate capturing of such transactions outside the normal transaction cycles.

On saving the transaction system will generate a transaction number. If the ‘Generate Invoice Number’ flag is checked, system will generate the VAT Invoice number as well. System also generates appropriate accounting entries / VAT repository entries for the transactions.

You will use the following screen to do manual entries related to Service Tax.

Navigation: India Local Purchasing > VAT/Service Tax > Transactions > Manual Entry

Field Description Description
Header Section All the Transaction details are captured in the Header Section.
Regimes Select VAT Regime
Organization Type Select Inventory Organization for VAT
Organization Name Select Organization from LOV. LOV contains all Organizations where Oracle Financials for India is installed.
Transaction Number An Auto generated Number for each manual transaction successfully performed.
Location Name Organization Location is displayed here.
Transaction Type Select Transaction type. LOV contains:
1. Recovery
2. Adjustment Recovery
3. Liability
4. Adjustment Liability
5. Payment
Transaction Date Select Transaction Date. Transaction Date has to be more than the last Settlement Date and less than the Current System Date.
Party Type Select Party Type. LOV contains:
1. Vendor
2. Customer
3. Tax Authority
You should select Vendor based on the Transaction Type. For e.g. if the Transaction Type is Recovery, you will fill in Vendor details in the ‘Party Details’ section and similarly if the Transaction Type is liability, you will fill in Customer details in the ‘Party Details’ section. In case you are capturing VAT payment through this screen then you should select Tax Authority in ‘Party Details’.
Party Name Select Party Name
Party Site Select Party Site.
Invoice Number Number of Invoice issued by the party.
Invoice Date Date of Invoice issued by the party.
Item Class You can select Item Class here.
Item Name You can select the Item here
Tax Details block In this block you will enter Tax information related to the transaction.
Tax Type Select Tax Type.
LOV containing:
1. Value Added Tax
2. Turnover Tax
3. Purchase Tax
4. Entry Tax
5. Octroi - IND
You should select the appropriate tax types. You can choose multiple tax types.
Parent Tax Type This field will display the Parent Tax Type that has been setup for a Child Tax in the Regime setup.
Assessable Value Enter Assessable Value for the transaction. Assessable Value for Child Tax will default as Value of Parent Tax.
Rate (%) Enter Rate of Tax.
Tax Amount Calculated Amount based on Assessable Value and Rate of Tax.
Adjustment Account Select Adjustment Account where the amount needs to be adjusted.
Remarks Enter Remarks, if any.
[ ] Enter line-specific additional detail and Save.

Payment of VAT can also be captured through the Manual Entry Screen.

On saving the transaction system will generate a Transaction Number.

Note: You can view the GL drilldown accounting entries using the Show transactions button on the Tools menu of the Manual Entry form

Value Added Tax Accounting

This section provides an overview on the Tax Accounting process. Following figure depicts the Accounting required for VAT Taxes. Tax Accounting happens along with base transaction accounting. This varies when the Tax is deferred and can be recovered or the liability arises only on happening of a particular Accounting event in the future. For example, VAT Recovery is on Receipt of Supplier VAT Invoice. So is the Accounting. In such cases, the actual Recovery happens on claiming VAT through after Receiving Supplier Invoice and Liability accounting happens on generating the VAT Invoice for Customs.

Once the transaction has passed through the Recovery and Liability event, the next phase would be settlement. The total of recovered amount (net of transferred amounts) is what remains to set-off against the Tax Liability under the Regime. The Net Liability is settled by making a payment to the Tax Authority.

This process is applicable to all taxes in Procure to Pay (P2P) and Order to Cash (O2C) Cycles.

Accounting Entries

Accounting for VAT Taxes would be done in two phases. The first would be on the Purchasing and the second would be on Sale event. On initial Purchase and Sale event, the VAT Tax would be Debited/Credited to an Interim Account. This Debit/Credit to Interim Account would be reversed on to Recovery/Liability accounts on Recovery/Liability event.

VAT Repository

All transactions that lead to VAT Recovery or Liability or adjustment to the same would update the VAT Repository. You can use this repository for meeting the reporting requirements specific to the state.

Following events update the VAT Repository:

1. Claim VAT

2. Process VAT Installments

3. Return to Vendor after VAT Claim

4. VAT Invoice Generation based on

5. Manual Entry following transaction types

6. Settlement

Managing India Local Inventory

This section elaborates on the effect of Transactions that can be handled through Oracle Financials for India Inventory.

Transactions

The Miscellaneous transaction form has been customized to accommodate the RG Register entries through a separate transaction type.

In Oracle Financials for India, navigate to Transactions > Miscellaneous Transaction.

Additional types of 'Miscellaneous Issue (RG update)’ and 'Miscellaneous Receipt (RG update)' are introduced under Oracle Financials for India. However, there is No change in the Transaction Lines window.

The only difference between Miscellaneous Issue/Receipt (RG Update) and Miscellaneous Issue/Receipt is that the respective Excise Inventory Registers are updated when the input material is issued from stores to the production or finished goods / input material is received back into stores from production.

RG - I Register Entry

This is a view / entry form that can be used to view/enter the Manual RG-I Transaction. RG -I Register is the daily stock account for all excisable products. It displays on query all the transactions that have an entry in the RG-I Register. Each Inventory Organization will be considered, as an Excise Unit and the user need to specify the Organization Name and Location both for querying & for making manual entries into the register. Querying can be done based on certain fields on the Entry Block and also Transaction Details block.

In Oracle Financials for India, navigate to Transactions > RG Registers > RG1 Register Entry.

The field wise description of RG-I Register and its feature are given here for your ready reference. The following fields are to be entered by the user for manual Entry. Based on your requirement, specify any one of the following fields to View/Enter a Manual Entry in the Register.

Field Description Type Action Description
Operating Unit (Required) EDIT
HELP
PICK		 Use needs to select the Operating Unit from the LOV.
Organization (Required) EDIT HELP PICK The user needs to specify the Inventory Organization name from LOV for which the Manual Excise Entry is going to be accounted. The user needs to specify a Inventory Organization for which he wants to view the RG-I Register balance and information.
Location (Required) EDIT HELP PICK The user needs to specify the Location of an Inventory Organization from LOV for which Manual Excise Entry is going to be accounted. The user needs to specify a Location of an Inventory Organization for which he wants to view the RG-I Register balance and information.
Serial No     It is system generated serial number, which is generated automatically after entering a transaction.
Transaction Date (Required)   The Transaction Date will be entered here, If the user wants to view the RG-I Register for a particular day then he has to specify the Transaction Date.
Transaction Type (Required) EDIT HELP PICK The Transaction Types are Receipts, Issue, Inter-Org-Receipt, Inter-Org-Issue, Receipts Adjustment, Issue Adjustment, Production Receipts, Production Issue and Customer Return. By picking one the type, the user can view/enter a RG-1 entries for that type.
Item (Required) EDIT HELP PICK The user needs to specify the Item for which the receipts or issue entry is going to be passed.
Customer/Vendor Name Location (Optional) EDIT HELP PICK Details such as Name as per Vendor Site will be shown for Receipt Transactions. For Manual Entry these fields are optional. If item is sold directly similar details of Customer will be shown.
Customer/Vendor site (Optional) EDIT HELP PICK Details such as Vendor Site, will be shown for Receipt Transactions. For Manual Entry these fields are optional. If item is sold directly similar details of Customer Site will be shown.
Transaction Detail Block (Required/Displayed)   This Block will have the Transaction details with respect to Reference Number, Packed Quantity, Loose quantity, UOM and Registers RG23A or RG23C or PLA which has been used for Issue. These can be entered by the User while entering Manual RG-I Entry. Please note for a Transaction Type ' Issue', the Excise Invoice Number will be displayed in the Reference No field.
Additional Detail Block     This Block will have the Transaction details depending upon the Transaction Type Issue, Inter-Org-Issue, Issue Adjustment, and Customer Return.
Excise Rate / Excise Amount in the Additional Details Block     These fields will be enabled/disabled depending upon the Issue Type in the Additional Details block.
Excise Amount Block     This will be enabled only for Issue related transactions while entering a Manual Entry. Excise Basic, Additional, Others , Excise Cess, CVD Cess amount paid on delivery of goods will be displayed here.
Account     This will be enabled only for issue related transactions to enter the account code.
User need to take enough care to ensure that proper GL Account is selected for the transaction, as selection of improper GL accounts will have far reaching consequences for account reconciliation.
Additional Information Block (Optional)   The user can enter the Purpose & remarks regarding a Manual RG-I entry.

Note: You can view the GL drilldown accounting entries using the Show transactions button on the Tools menu of the Manual Entry form

RG 23 Register Entry

RG 23A Register

Adjustments/Manual entries in the CENVAT on inputs can be done in this register. All excisable goods of item type RMIN and RMEX , and credits availed on inputs will be accounted in this register

Important: This feature can also be used to upload the opening balances for a newly created Organization.

RG 23C Register

Adjustments/Manual entries in the CENVAT on Capital Goods can be done in this register. All excisable goods with item type CGIN and CGEX, and credits availed on capital goods will be accounted in this Register

This RG23 Manual Entry form can be used for both view/enter RG 23A & C Part I & II entries.

Navigate to this screen from Oracle Financials for India responsibility Registers > RG23 Register Entry.

Field Description Type Action Description
Organization Required EDIT HELP PICK The user need to specify the Inventory Organization name from LOV in which RG23 Register entries are going to be accounted. The user needs to specify an Inventory Organization for which he wants to view the RG-23A & C Register balance and information.
Location Required EDIT HELP PICK The user needs to specify the Location of an Inventory Organization from LOV in which the RG23 entries are going to be accounted. The user needs to specify a Location of an Inventory Organization for which he wants to view the RG-23A & C Register balance and information.
Serial No     It is system generated Serial Number after entering a transaction.
Transaction Date Required   The Transaction Date will be entered here and If the user wants to view the RG-23A & C Register for a particular day then he has to specify the Transaction Date.
Transaction Type Required EDIT HELP PICK The Transaction Types are Receipts, Issue, Inter-Org-Receipt, Inter-Org-Issue, Receipts Adjustment, Issue Adjustment, Production Receipts, Production Issue; Customer return can be entered here. By picking one the types, the user can view all RG-23A & C entries for that type.
Issue Type Optional PICK Select the destination of issue here. If the destination of Issue is within the country then, select ‘Domestic’. Else, it should be ‘Export’
Generate Excise Invoice Optional Enter Check this field if Excise Invoice has to be generated for this transaction. This will be applicable for issue transaction alone.
Item Required EDIT HELP PICK The user needs to specify Item for which the receipts/issue entry is going to be passed.
Customer/Vendor Name Optional Enter Enter Customer/Vendor Name and make a Manual Entry in RG-23 Register.
Customer/Vendor Location Optional Enter Enter Customer/Vendor Location.
Transaction Detail Block     This lock will have transaction details like Reference Number, Packed Quantity, Loose Quantity, UOM and Registers RG23A or RG23C or PLA, specific to the transaction.
Additional Details Block     Union Budget 2000-2001 allows instant credit on capital goods on receipt to the tune of 50% and the procedure of taking credit, only on installation, is dispensed with. These tables/fields are maintained only for future requirements. You can still use these fields to capture information & the same would not have an impact of RG23 Reports.
Verification Date (Optional)   This field is relevant in RG 23C for Capital Goods purchase. Enter the verification date of the Capital Item.
Installation Date Optional   This field is relevant in RG 23C for Capital Goods purchase. Enter the Installation date of the Capital Item.
Commission Date Optional   This field is relevant in RG 23C for Capital Goods purchase. Enter the Commission date of the Capital Item.
Brand Name Optional   This field is relevant in RG 23C for Capital Goods purchase. Enter the Brand name of the Capital Item.
Identification Number Optional   Enter Identification Number of the Capital Item.
Excise Amount Block Displayed None Shows the amount of CENVAT credit taken on inputs
Basic/Additional/Others Displayed EDIT HELP PICK Amount of MODVAT credit taken on account of Basic, Additional and other Excise Duty on the items purchased & received. This field will display the amount of CENVAT credit utilized for the dispatch of final products.
Additional CVD     Enter Additional CVD amount in this column.
Excise Cess, CVD Cess Displayed EDIT HELP PICK Amount of Cess credit taken on account of Basic and CVD Duty on the items purchased & received. This field will display the amount of CENVAT credit utilized for the dispatch of final products.
Account Required EDIT HELP PICK Enter the Account code to which the credit taken on the inputs will be debited in the General Ledger and the sane account will be credited when dispatches sent out.
Place of Installation Optional   Enter the location where the Capital Item is installed.
Identification Mark Optional   Enter a relevant Identification mark of a capital item.
[ ] Optional EDIT Enter line-specific additional detail and Save.
Remarks Block     You can enter relevant remarks for RG23 Part-I & II register for reference and correspondence

Note: You can view the GL drilldown accounting entries using the Show transactions button on the Tools menu of the Manual Entry form

Apply Time Extension

Apply Time Extensions screen can be invoked to apply for additional time. In the case of OSP from Inventory or Sales Returns Transactions if the Vendor wants some more time means, he can invoke the time extensions screen & find the appropriate information by entering the transaction type or the start & end date limits or by entering both. He can apply for the time extension, he need. Then the due date is automatically defaulted. It can either be applied or rejected by the appropriate authority. In the case of rejection, the due date is cleared.

This screen can also be used for recording the additional time granted by the Excise Authorities to Receive/Return goods under Rule 173 H and 173 L of the Central Excise Rules.

As per the changes announced in Union Budget 2000-2001, there is no need to debit duty while clearing goods for sub contracting operations under Rule 57 F (4). The requirement for taking time extensions to bring the goods sent under 57 F (4) Challan also stands withdrawn.

As per the current provisions of the Law, duty need to be debited only if the goods sent for sub contracting operations are not received back within 180 days. Later if the goods are received back, the duty debited can be availed. This requirement can be mapped through Manual RG 23 Entries.

Though the requirement for recording the time extensions granted by the Excise authorities does not exist, the form is maintained in the current release by considering similar future requirements.

Navigation to India Localization > Transaction > Apply time Extension.

Field Description Type Action Description
Trans Name (Required) ENTER The user needs to pick up either OSP Transaction or Sales return.
Vendor/Customer Name (Required) EDIT HELP PICK The user need to enter valid Customer/Vendor Name.
User Ref. No. (Optional) EDIT HELP PICK Reference No. can be entered here. The user need to enter valid Customer/Vendor Name.

After querying the OSP or Sales Transaction, the user can enter extended time limit for a transaction and create a record then the due date gets extended by using the below mentioned form.

Navigation to India Localization > Transaction > Apply time Extension.

Trans Name, Vendor Name, User Ref No., Trans Date, Original Due Date Extended Due date is displayed as per referenced transaction.

Field Description Type Action Description
Sl. No. (Required)   Sl. No. is a system generated Serial No.
Ext Days (Required)   You can enter Number of Days for Extension.
Status (Required) PICK Select Status from drop list. The Options available are Applied, Approved and Rejected. Initially it will be applied. It can be changed to Approved or Rejected.
Due Date (Displayed)   Display only field giving the Due Date after applying the Time Extension.

Master Organization RG Consolidation

If Multiple Organizations are defined within the same Excise Registered premises, user can opt to identify One Organization & Location Combination as "Master Organization" and all other Organizations needs to be treated as Child Organizations and should have the reference of the master Organization based on ECC code. In such type of setup, the Master Organization will be the Organization at which all excise registers should be generated.

The master child relationship among the Organization and location are used only to generate consolidated excise registers at Master Organization level. You need to submit ‘India Master Org RG’ request set in order to get Excise Registers consolidated at Master Organization.

Steps for running the Master Organization RG Consolidation:

Master Org RG Entries Request Set

Navigate to Inventory > Reports > All > Request Set > Master Org RG Entries to run the request set. This request set consists of 4 requests, one each for consolidation RG23 A, C, PLA and RG1 Registers. Parameters for each of the requests are same:

Organization (Required) PICK HELP

Name of the Master Organization is to be given in this parameter.

Location (Required) PICK HELP

Name of the Master Organization Location is to be given in this parameter

After completion of the Request Set, the consolidated RG Entries and balances shall be available at the Master Organization Location. This request set is only a program to copy and consolidate the Child Organization records. Normal RG reports shall have to be used for viewing and printing the RG reports for the Master Organization. The entries for individual Child Organizations shall still be available and if required reports could be obtained for Child Organizations as well.

View Register Balance

This section gives us details of the various Register balances.

The user can view the Excise Registers RG23A Part-II, RG23C Part-II and PLA balances through this form.

Transactions RG Registers View Register Balance

After specifying the Operating Unit, Inventory Organization Name, Location and currency the user will get Excise Register balances in the Balances Block.

RG23A Part-II balance represents the balance available on Account of credit availed on Inputs.

RG23 A CESS Amount represents the balance available on Account of credit availed on Inputs.

RG23C Part-II balance represents the balance available on account of credits availed on capital goods.

RG23 C CESS Amount represents the balance available on Account of credit availed on capital goods

PLA Register represents the balance available in PLA Register.

PLA CESS represents the cess balance available in PLA Register.

View Item Definition

This view form has been designed to find the relevant Tax Information for an Item. Item definition provides the Localization information for an item with respect to Tax applicability for an Inventory Organization Location.

By invoking the screen India Local Find Item Information we can find the Tax Information relating to Localization. Items - Item Definition.

Field Description Type Action Description
Organization Scope (Required) EDIT HELP PICK User can select Organization scope which to enter Items definition. The Quick pick for Organization scope are Single or Single with Master or All Organizations.
Organization (Optionally Required) EDIT HELP PICK When the user has Single or Single with Master Organization Scope then he need to pickup the Inventory Organization from the LOV.
Item/Description (Required) EDIT HELP PICK Select the item from LOV for which you want to view the Item definition.
Localization Info     India Local Item Information form is invoked by opening the Localization Info Button and the information are defaulted from the Master Item regarding the Excise Flag, Modvat Flag, Item Class, Item Folio and Item Tariff.

The Standard Applications Item Information form can be invoked by clicking the Open button in this form and view the item categories, attributes and Revision details.

Outside Processing Transaction

Outside Processing (OSP) may happen in two circumstances:

  1. Where processing is done without any additional material being input by the OSP Vendor

  2. Where processing is done with additional use of materials

The case where additional material are used by the Vendor, the transaction is not being covered under Excise Rule 57(F)

Under Rule 57(F) of Excise, material may be sent outside the factory for processing on payment of specified percentage (presently 10%) of the value of the goods, which can be reversed provided the goods comeback within the specified (180) number of days. No additional material is permitted to be added by the vendor to ensure that the value addition relates to labor only.

The above provisions of Excise pertaining to debiting ( 10% of the material cost as ) duty and reversing the same once the OSP material is received back in total held goods only upto 31-March-2000. W.E.F 01-April-2000, there is no need to keep a manual track on overdue issues i.e those pending for more than 180 days. The duty on such issues has to be calculated manually and debited to the duty paying register through RG 23 Manual Entry Screen.

Basic Business Needs

The India Local OPM outside functionality satisfies the following requirements of Tracking Goods sent for Outside Processing:

Major Features

Maintenance of details of 57F(4).

User is provided with facility to maintain the details of 57F(4) and select Payment Registers at the time of Issue and Receipt of Process Material.

Prerequisites:

Outside Processing Transaction

By using India Local OPM features, issue and receipt of goods for subcontracting can be tracked based on parameters setup in the Additional Organization Information, duty will be debited at the time of removal of goods and the same can be credited on receipt of the goods. If there is no need to pay on removal of goods for subcontracting, user needs to take care to setup ZERO in the OSP percentage field of Additional Organization Information. User needs to keep a manual track for the receipt of goods and if the goods are not received back in 180 days, duty needs to be worked out manually and amount should be debited in paying duty registers through RG23 Manual Entry Screen.

Prerequisites:

In Oracle Financials for India additional setups are required.

In India Local Oracle Process Manufacturing OSP transactions are handled through production batches. When a WIP warehouse in a production batch is a warehouse marked as OSP Warehouse in Localization the date will be populated into OSP tables. A Purchase Order has to be created for the processing charges and should be received in OPM so that it can be passed to AP for Payment of these processing charges. As these processing charges are treated as one of the ingredients, cost rollup will consider all the costs correctly.

Under Localization following additional steps or processes are involved:

OSP Issue

Navigate to India OPM Process Execution > Production Mgmt > OSP Transactions.

Sub-letting, job-work or Out Side Processing is a common business requirement. Basic information regarding the OSP transaction is captured using this screen. Vendor Name, Form number is very vital. Issue batch number is used as reference. Only WIP warehouse can be an OSP warehouse.

Issue Ref No: It can be selected from a lookup. Lookup consists of all the batch numbers of production batches released and where the WIP warehouse is marked as OSP warehouse.

Date: The date on which the above OSP issue is made.

Type: Enter whether it is an OSP Issue or OSP Receipt.

PO Number: It can be selected from a lookup. Lookup consists of all the purchase order numbers where at least one line item is on inventory item or expense item for OSP labor charges.

Select Payment Registers

Navigate to India OPM Process Execution > Production > OSP Transactions > (B) OSP Lines > (B) Select Payment Registers.

This screen will show the balances available in all the three Registers – RG 23 A Part II, RG 23 C Part II and PLA.

You can enter the Excise amount to be debited will be entered here with break up. Having done the entry, the register selection can be made through the radio button displayed against each of the above three registers.

OSP Receipt

Navigate to India OPM Process Execution > Production Mgmt > OSP Transactions > (B) OSP Lines.

All the fields are display only fields. These fields are populated based on the ref no (Batch No) entered on the previous screen.

If the batch status is closed Select Register will be enabled. You must select a register to credit the excise amount. On selection of Excise Register ‘Post RGII Entry’ push button will be enabled. On clicking this push button excise register RG II entry will be made. If the receivable excise amount is null , you need not select any register.

The following accounting entries are passed in the localization at the time of claiming the receivable excise amount.

Dr. CENVAT RM/CG Excise duty

Cr. Excise Paid Excise duty

Item No: Displays the Item Number.

UOM: Displays the Unit of Measure of the item. This is the primary unit of measure of the item.

Unit Price: Displayed unit rate of each item.

Plan Qty: The total expected quantity will be displayed.

Received In due date: The total quantity received with in the due date will be displayed here. Due date will be calculated taking batch certify date as the start date and considering the no of days mentioned OSP Return days field mentioned in the organization additional information screen.

Received after due date: The total quantity that is received after the due date.

Total qty: The total quantity received before and after the due date. Transaction Details push button will take you to the screen where individual receipt quantities along with date of receipt will be displayed.

Payable Excise

The payable excise amount will be calculated and displayed. The excise amount payable will depend upon the value of batch ingredients and OSP excise percentage mentioned in the Organization Additional Information Form.

Receivable Excise

Displayed field. The receivable excise amount will be calculated based on the payable excise, expected quantity of the batch output and actual quantity received before due date. If total quantity is received before the due date then receivable excise amount will be equal to the payable excise. Other wise it will be proportionately calculated.

Processing Inter Organization Transfer Transactions

Oracle Financials for India Inter Organization Transfer helps in transfer of material between Inventory Units. Transfer of materials can be either from manufacturing to trading unit or vice versa. Existing form of Inventory Transfer of Oracle Base Inventory has been added with two new buttons at the bottom of the screen to meet the Indian Tax Requirements. Similar to the Internal Sales Order Cycle, the user needs to define the Receiving Organization as the Internal Customer in the Sending Organization. Item Category and Tax Category needs to be defined for the Item to be shipped from the Sending Organization to the Receiving Organization. This needs to be defined and attached in the Internal Customers set up. Tax defaulting hierarchy in the Inter Organization Transfer is similar to Oracle Financials for India process of Tax Defaulting for Sales Order.

Navigate to India Local Inventory > Transactions > IL Inter Organization Transfer. This opens the Base Inventory form of Inter Organization Transfer. Before making a shipment ensure that all Oracle Base Inventory setup is completed.

Click Transaction Lines to view the base detailed transaction form. Match and Taxes button enable Inter Organization Transfer specific to Indian requirements.

Based on the defaulting logic defined and setups for the item transacted, the Tax Category will be defaulted. You can view the tax lines by clicking Taxes in the form. You can modify the taxes like add new tax lines, delete defaulted tax lines and alter precedence of existing tax lines.

Note: While defining the Shipping Networks for the Organizations ensure that Inter Organization Transfer Charges Type is set to None. If the same is set to any other type, India Local tax engine neither considers that in the valuation of the Inventory nor in the tax lines.

Close the taxes form after saving your changes to get back to the transaction details form. Save the transfer transaction to update and confirm the transaction and restrict further modifications. Saving the inventory transfer record also generates the Excise and VAT Invoice Numbers when the item has Excise and VAT Taxes. The Invoice numbers generated on saving the transaction are shown in a separate form.

Field Description
Line Number Line Number of the item being transacted.
Exc. Inv. No. Excise Invoice Number generated for the Transaction if the item is excisable and transaction has Excise Type of Taxes.
Vat Inv. No. VAT Invoice Number generated for the Transaction if the item is defined in the VAT Item Classification and transaction has VAT Type of Taxes.
Item Gives the description of the Item being shipped.
Quantity Displays the Quantity being shipped for the Item against the transaction.
From Org Displays the name of the Organization from where the goods have been shipped for this transaction.
To Org Displays the name of the To Organization, where the goods have been shipped for this transaction.
From Subinv. Displays the Sub Inventory of the Shipping Organization from where the goods have been shipped for this transaction.
To Subinv. Displays the Sub Inventory of the Receiving Organization to which the goods have been shipped for this transaction.

The register updates for the various type of Inter Organization Transfer from Excise perspective are:

Shipping Organization Item Attribute Registers to be Updated In Shipping Organization Receiving Organization Item Attribute Registers to be Updated In Receiving Organization
RMIN RG23 A Part 1 RMIN RG23 A Part 1
RMIN RG23 A Part 1 FGIN RG 1
RMIN RG23 A Part 1 CGIN RG23 C Part 1
RMIN RG23 A Part 1 CCIN RG23 A Part 1
FGIN RG 1 RMIN RG23 A Part 1
FGIN RG 1 FGIN RG 1
FGIN RG 1 CGIN RG23 C Part 1
FGIN RG 1 CCIN RG23 A Part 1
CGIN RG23 C Part 1 RMIN RG23 A Part 1
CGIN RG23 C Part 1 FGIN RG 1
CGIN RG23 C Part 1 CGIN RG23 C Part 1
CGIN RG23 C Part 1 CCIN RG23 A Part 1
CCIN RG23 A Part 1 RMIN RG23 A Part 1
CCIN RG23 A Part 1 FGIN RG 1
CCIN RG23 A Part 1 CGIN RG23 C Part 1
CCIN RG23 A Part 1 CCIN RG23 A Part 1

To view register entries navigate to Tools > View Registers after saving the transfer record.

In case of Direct Organization transfer you need not record the receipt of material as the quantities in the Receiving Organization gets updated automatically on shipment. Excise and VAT claims for the same is performed by the system online without any user intervention. The costing for the item also gets updated based on the nature of the tax lines in the Tax Category. You can view register entries of the receiving organization by querying the transfer document from the Receiving Organization Inventory responsibility.

Assessable price for the Transaction is picked up from the Customer Additional Information form for Excise and VAT Taxes. If the same is not defined, it takes the value from the Item Cost for the item being shipped.

In case of In Transit Inventory Organization Transfer, you must receive goods as normal receipt and follow the same process of claiming CENVAT and VAT tax credit. In the Receipts, the transaction can be captured through the Shipment Number or through various filters available in the query form.

The default Document Sequence followed for Excise Invoice Number Generation is that of the Domestic Series. The same sequence is followed for the Direct and In Transit Inter Organization Transfers. VAT Invoice Number generation is based on the Default Document Type set up done against the Regime Registration Number of the Organization. The same sequence is followed for the Direct and In Transit Inter Organization Transfers.

The India Local tax engine generates Accounting Entries only for the items related to Localization Taxes. Oracle Base Inventory will generate the accounting entries for the basic value of Inventory transferred and for variances if any in case of Standard Costing in Receiving Organization.

Inter Organization Transfer of Capital Goods

When Capital Goods are being transferred in the same year of purchase, the Accrued Excise Credit on Capital Goods needs to be claimed in the Sending Organization. This claim will be done by the system automatically and the accounting entry for the same will also be generated on matching the line quantity with the original receipt.

You can match the shipment quantity against a specific Receipt to claim the balance accrued excise credit. The system will prompt you to match the shipment with its receipt when you save the record without matching. This option of selecting the receipt from which the claim is to be made is optional and can be ignored when the Capital Goods are more than a year old or hundred percent excise credit has already been availed.

Once the claim for the Capital Goods is carried out, the goods can be sent as normal duty paid goods by charging the relevant rate of Excise Duty. Transfer of Capital Goods is available only for In Transit Inter Organization Transfer.

Similar to CENVAT Claim, you can claim the VAT accrued credit.

Click Match on the detail form to match against the relevant Receipt. You must ensure that the shipment is being matched to the correct receipt. The Match form contains all capital receipts that contain Excise or VAT type of taxes attached to it. You have the flexibility to apply the shipment quantity against multiple receipts. The system ensures that the sum of all quantities applied in the match form equals the shipment quantity. The claimed percentage is also shown in the CENVAT Receipt Details form to facilitate identification of the receipt.

Field Description Description
Receipt Number Displays various receipts numbers of the capital goods item being shipped by the Sending Organization.
Receipt Quantity Displays the number of quantities received against the particular receipt.
Available Quantity Quantity available for application. (Receipt Quantity – Sum of all Quantity Applied)
Excise Claimed Percentage Displays the percentage of excise duty claimed against the receipt for CENVAT purpose. (Amount Claimed / Total Excise to be claimed)
VAT Claimed Percentage Displays the percentage of VAT claimed against the receipt. (VAT Amount Claimed / Total VAT to be claimed)
Quantity to Apply Quantities to be shipped for the Inter Organization Transfer needs to be entered in this column against which receipt the transaction is to be carried out.

Apart from claiming the accrued CENVAT and VAT claims by matching the shipment to a Receipt, rest of the process is same in the Sending Organization and in the Receiving Organization. Closing the CENVAT Receipt Details form reduces the pending quantity available against the receipt.

Note: Matching the receipt quantity also restricts modification of taxes in the tax screen. Thus all activities with respect to taxes such as addition or modification should be completed before matching the receipt quantities.

When line values are modified after completion of match activity, the system reverts the quantities that were already matched against the Receipts. You will need to re-match the shipped quantities in order to claim the balance accrued credit.

Inter Organization Transfer for Trading Organization

When material is transferred from a Trading Organization, the user has to match the shipment against a receipt in order to update the Localization Excise Registers. Unlike Manufacturing Organization where RG 1 is updated, RG23D register gets updated in case of a Trading Organization.

The Match receipts functionality allows you to satisfy all requirements related to a Trading Organization or location registered under the Central Excise Rules to pass on Excise Credit to the Customers. The Excise Duty tracked while receiving the goods in a Trading Organization can be allowed as CENVAT credit for the Customers. Thus, before confirming the shipment, you must allocate the excise duty involved during receipt of the excisable goods. While sending goods from the Trading Organization, you are required to track the exact amount of Duty paid by the Original Manufacturer for passing down the credit under CENVAT procedures. Clicking Match will let you match the required receipt against the shipment.

Field Description Description
Customer name Name of the Internal Customer will be displayed here.
Customer Number Customer Number will be displayed here.
Quantity Invoiced Shipped quantity will be displayed here.
Matched Quantity Before matching, this field will be blank and after matching this field shows the matched quantity.
Item Item code of the material shipped will be displayed here.
UOM UOM of an item will be displayed here.
Transaction Type Transaction type like Receipts and Return will be displayed here.
Supplier Invoice No Supplier Invoice Number for a particular receipt will be displayed here.
Quantity in Receipt UOM UOM of the item in the Receipt line will be displayed here.
Received Quantity received in a particular Receipt will be displayed here.
Available Available Quantity in a particular Receipt will be displayed here.
Apply This represents the proposed match quantity. This will be filled by the system for a Release Quantity if the User selected Automatic Matching. The User can also enter number of quantity manually for matching.
Quantity in Issue - UOM UOM of the item in the Issue line will be displayed here.
Available Available Quantity in a particular Issue will be displayed here, this is equivalent to Available receipt quantity.
Apply This represents the match quantity.
Receipt Number Receipt Number will be displayed here.
Receipt Date Receipt Date will be displayed here.
Duty Per Unit Excise Duty per unit as per receipt line will be displayed here.
SH Cess Cess per unit as per receipt line will be displayed here.

Closing the RG23D Register Entries India Local (match claim) form reduces the pending quantity available against the receipt.

Note: Matching the receipt quantity also restricts modification of taxes in the tax screen. Thus all activities with respect to taxes such as addition or modification should be completed before matching the receipt quantities. When line values are modified after completion of match activity, the system reverts the quantities that were already matched against the Receipts. You will need to re-match the shipped quantities in order to claim the balance accrued credit.

View Inter Organization Transactions

View Interorg Excise / VAT Details facilitates to view the Inter Organization Transactions. This form is only a view form and no modifications can be made to the form. Navigate to India Local Inventory > Transactions > View Interorg Excise / VAT Details.

Field Description Description
Find Excise/VAT Details  
From Organization Select the Name of the Organization form where the Inter Organization Transfer has taken place.
To Organization Select the name of the Organization to where the goods are shipped at the time of transacting the Inter Organization Transfer.
From Date Starting from this date the Inter Organization Transactions will be part of the Query criteria.
To Date End date of the Query Criteria for the Inter Organization records to be displayed.
Excise Invoice No Excise Invoice Number for the Inter Organization Transfer being generated at the time of transaction creation. Based on this the query criteria the record(s) will be displayed. If a particular Excise Invoice Number is given then the same is displayed.
VAT Invoice No VAT Invoice Number for the Inter Organization Transfer being generated at the time of transaction creation. Based on this the query criteria the record(s) will be displayed. If a particular VAT Invoice Number is given then the same is displayed.

Note: You can view the GL drilldown accounting entries using the Show transactions button on the Tools menu of the Excise/VAT Details form.

Reports

This section provides overview and detailed description of these reports:

Tax List Report

Excise Duty Claim for RMA Report

India-Tax List Report

This Report gives you the List of Tax Category for an Item Class and its associated Tax Code & Tax type. The user can view and review this report before defining a New Tax Category.

Report Submission

Use the Request Transaction Reports form and enter India-Tax List Report in the Name field to submit the report.

Report Parameters:

Tax Category Name: PICK HELP (optional)

Oracle Financials for India accepts Tax Category name as an optional parameter. If you do not give any value to this field, system will print all the Tax Category names defined in the system till date.

Item Class ID: PICK HELP (optional)

Oracle Financials for India accepts an optional Item Class also.

Tax Name: PICK HELP

Oracle Financials for India accepts Tax Name as an optional parameter. If you do not give any value to this field, system will print all the Tax Names defined in the system till date.

Category Start Date: (Optional)

Oracle Financials for India accepts Category Start Date as an optional parameter. This is to produce the report to your choice. Transactions with Tax Categories defined, on or after the date will be selected for reporting.

Category End Date: (Optional)

Oracle Financials for India accepts Category End Date as an optional parameter. This is to produce the report to your choice. Transactions with Tax Categories defined on or before the date will be selected for reporting. Blank End date means, no check is made on end dates.

Tax name Start Date: (Optional)

Oracle Financials for India accepts Tax Name Start Date as an optional parameter. This is to produce the report to your choice. Transactions with Tax Name defined, on or after the date will be selected for reporting.

Tax name End Date: (Optional)

Oracle Financials for India accepts Tax Name End Date as an optional parameter. This is to produce the report to your choice. Transactions with Tax Name defined on or before the date will be selected for reporting. Blank End date means, no check is made on end dates.

Report Headings

Report Headings provide you with general information about the contents of the report. Oracle lists information on Various Tax Categories and Tax Names defined in the system.

Column Headings:

Tax Category

Item Class Code

Category effective date from

Category effective date to

Tax Name

Amount

UOM

Rate

Adhoc Flag

Tax Name effective date from

India - Excise Duty Claim for RMA Report

This Report gives you the Amount that can be claimed from Excise Authorities on the Excise amount of a RMA Receipts.

Report Submission

Use the Submit Requests (India Local INV module) form and enter India- Excise Duty Claim For RMA Receipts in the Name field to submit the report.

Report Parameters

Customer Name: PICK (Optional)

The User wants to see the RMA Receipt from Particular Customer and the Excise Claimable amount, then he can specify the Customer Name here.

Customer Number

Customer Number of the above Customer will be defaulted here.

RMA No

The User can enter specific RMA Number

Start Date (Required)

End Date: (Required)

Report Headings

Report Headings provide you with general information about the contents of the report. Oracle lists Company Name based on User parameter input.

Column Headings

RMA No

RMA Line

RMA Date

RMA Type

Sub Inventory

The Delivered Sub Inventory for the Return material.

Customer Name

Customer Number

Ex.Invoice Number

Original Excise Invoice Number in which the goods where sent

Ex.Invoice Date

Original Excise Invoice Date in which the goods where sent

Excise Due Amount

Excise duty amount that can be claimed from the Excise Department on account of an return.