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Oracle Financials for India User Guide
Release 12.1
Part Number E13658-03
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Trading Functionality

This chapter covers the following topics:

Trading Functionality Overview

Every Dealer and Importer dealing in excisable goods is required to obtain Excise Registration to issue CENVATable invoices. This registration should be obtained for every warehouse of the dealer; and that the Superintendent of Excise has jurisdiction over the warehouse and will be the officer responsible to issue Central Excise Registration.

Dealers who register themselves with Central Excise will ensure that the Register in form RG23D is maintained in the warehouse and should be available for inspection by Central Excise Officers.

In a Trading Organization, the following are the essential requirements:

Major Features

Match Receipts Localized Overview

This functionality is designed to support the excise related transactions for a trading organization or location. If the organization or location is registered under Central Excise rules as a Dealer of Depot, you can pass down the credit of duty involved in the goods you are trading. The trading organization needs to track the duty involved in excise goods and the same needs to be tracked at the time of receipt.

The Match receipts functionality allows the user to satisfy all requirements related to a trading organization or location registered under the Central excise rules to pass on excise credit to your customers. The excise duty tracked while receiving the goods in a trading organization can be allowed as CENVAT credit for its customers. Before confirming the shipment, the organization needs to allocate the excise duty involved during receipt of the excisable goods. While shipping 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. This can be done through match receipt for trading item screen. This Matching Receipts form provides the Information regarding available receipts from which the delivery quantity can be picked up. Once the receipt is matched then the Excise amount in the Fullfilled Order delivery lines will be the Excise amount from Receipt tax line for the respective delivery quantity. A new feature of Unmatch is provided which will enable the user to roll back the matching already made in case of either wrong matching or need for splitting etc.

Major Features

Trading Sub inventory Location Set up

The Sub inventories or Warehouses registered as Trading Warehouses are defined as ‘Trading’ Sub Inventory Locations.

India Local Inventory - Setup - Organization - Subinventory Locations

As a part of Localization setup, the sub-inventories need to be associated with Organization or Location combination. Excise related transactions and records would get updated only for those sub inventories, which are identified as TRADING for Trading organizations. By considering the transactions of a sub inventory, the check box for bonded/traded needs to be enabled.

India Local Inventory - Set up - Organizations - SubInventory Locations

Field Description Type Action Description
Header Level      
Organization Name/Location (Required) PICK HELP The inventory organization name and its respective Location will be selected by the User from the LOV.
Line Level      
SubInventory (Required) PICK HELP The User can select the Sub-inventory name from the LOV
Description (Displayed)   The Description for the selected Sub-Inventory will be displayed here.
Bonded (Flag) (Optional) CHECK BOX This field is Disabled for a Trading Organization and Location.
Trading Flag (Required) CHECK BOX For all Sub-inventories in a Trading Organization/Location, this field shall be CHECKED by default.

Trading Item Set Up

Items that are being used in a Trading Organization shall have specific Excise requirements. In order to meet these requirements, the Item shall be defined with the following flags in the India Items Classification screen.

Excise Flag - ‘YES’

Trading Flag - ‘YES’

The user can define templates, which can contain the item attributes that are common across many items.

These templates can be attached to multiple items at one go. This provides lot of flexibility to the user.

Optionally, the user can also define item attributes separately for an item.

Shipment Register Set Up

The Trading Shipping transactions shall be controlled with the following Register types. The Shipping Order Types / Invoice Sources shall be assigned to the following Register codes in the Trading Organization-Location from which the shipment takes place:

The Register types will be used to control the instances of RG23D register updation.

Transactions

Purchase Receipts / Returns

Purchase Receipts / Returns in a Trading Organization can be done in the same way as it is done in a manufacturing organization. If the Item is defined as Excisable and trading, the RG 23 D register shall be hit for the Receipts / Returns.

Based on the setup flag ‘Excise in RG 23D ’ in the Organization Additional Information Definition, the Excise amount on Receipt shall be debited to the RG23 D account or the Inventory account. By default , this flag is set to ‘NO’ and on delivery, if the Trading Organization is an Average Costing organization, the Inventory Cost shall contain the Excise Tax amount also. In the case of Standard Cost organizations, the Excise Tax amount shall be debited to the Purchase Price Variance account.

Shipment - Receipts Matching

In a Trading Organization each Shipment can be matched to the Purchasing Receipts so that the Excise Taxes could be passed on to the Customer. FIFO/LIFO method can be followed by the dealer while delivering the goods from the godown /store-room. The matching can be for shipment Lines or the Delivery itself.

Matching Receipts For Trading Item

This functionality is designed to support the excise related transactions for a trading organization/location. If the organization/location is registered under Central Excise rules as a Dealer of Depot, he can pass down the credit of duty involved in the goods with which he is trading. The trading organization needs to track the duty involved in excisable goods and the same need to be tracked at the time of receipt.

The excise duty tracked while receiving the goods in a trading organization can be allowed as CENVAT credit for its customers. Before confirming the shipment, the organization needs to allocate the excise duty involved at the time of receipt of the excisable goods. While shipping from the trading organization, the user need to track the exact amount of duty paid by the original manufacturer for passing down the credit under CENVAT procedures. This can be done through match receipt for trading item screen.

This Matching Receipts form provides the Information regarding available receipts from which the delivery quantity can be picked up. Once the receipt is matched then the Excise amount in the Fullfilled Order delivery lines will be replaced by the Excise amount from Receipt tax line for the respective delivery quantity.

It may be noted that the basic line price charged in a trading organization may be or may not be inclusive of the excise duty. If it is inclusive of excise duty , the excise duty matched through match receipt screen should not be accounted for the receivables. User needs to define adhoc taxes with excise type while creating the sales order and the taxes towards excise duty need to be maintained as zero in the sales order. On matching the exact excise duty will get updated as taxes. User need to take enough care not to attach any precedence logic to excise type of taxes in this type of set up.

On completion of ship confirmation from a trading organization, the RG 23 D register will get updated with the quantity matched.

Quantity matched could be unmatched before Shipment transaction is completed and the ‘India - Excise Invoice Generation Program’ is run. This shall take care of the Backordering scenarios and user mistakes while matching. However it is to be noted that unmatching is not allowed once the delivery is shipped and Excise invoice generations program is run.

In Oracle India Localization, navigate to the RG23 Register Entries India Localization window as follows:

India Local Order Management - Shipments - Trading (India) - Match Receipts

You can find out the receipts available for an item by querying through Find Customer Order Screen. The following are the fields in this Find Customer Order Screen.

Field Description Type Action Description  
Match Type (Required)   Match type field provides two options ‘Match’ or ‘Unmatch’. Match shall be chosen for normal matching transactions and ‘Unmatch’ in cases where the already matched transaction needs to be reversed before the Shipment is made. Please note that the UNMATCH feature can not be used after completing the Shipment transaction.  
Customer Name (Optional)   Customer Name can be entered from the LOV.  
Customer Number (Displayed)   Customer Number will be displayed here.  
Delivery ID (Optional)   Delivery ID may be entered by the user from LOV for which the matching of receipt is going to be done.  
Delivery Detail ID (Optional)   Delivery Detail ID may be entered by the user from LOV for which the matching of receipt is going to be done.
Order Number (Required) PICK HELP Order Number must be entered by the user from LOV for which the matching of receipt is going to be done.
Line No (Optional)   Line No. of an Order can be entered here.
Automatic Matching (Optional) Check If this flag is checked, the system shall automatically match the Delivery detail lines with the available Receipts to the Subinventory based on a FIFO logic.
Clear (Optional)   This button shall clear fields in the Find window.
Find / Auto / Unmatch (Required)   This button is used for directing the Transaction in 3 different action paths based on the values provided in the MATCH TYPE and ‘AUTOMATIC MATCHING’ fields:
If MATCH TYPE is MATCH and ‘AUTOMATIC MATCHING’ is UNCHECKED, the RG23 D Register Entries screen shall be opened for Delivery Detail level matching.
If MATCH TYPE is MATCH and ‘AUTOMATIC MATCHING’ is CHECKED, system shall match the Delivery lines against available Receipts on FIFO basis.
If MATCH TYPE is ‘UNMATCH’, the system shall rollback the matching previously done against the DELIVERY. Receipt for which the matching was done earlier shall again be available for matching for other deliveries. This feature is available only if the DELIVERY is NOT SHIPPED

After the above find screen, the cursor will be in the RG23D Register entries. Here the User has can match a respective receipt quantity in the following ways.

Automatic Matching

The System will automatically match the Receipt based on Matching method FIFO (First In First Out) or LIFO (Last In First Out).

Manual Matching

The User can manually match the Receipts quantity by moving the cursor to the respective receipts line. After matching receipts and save this screen, the User can view the Issue tax Lines in which Excise amount will be replaced by the Excise amount from Receipt tax line for the respective matched quantity.

RG23D Register entries Screen's field wise description and features are given for your ready reference.

Field Description Type Action Description
Header Level      
Customer Name (Displayed)   Customer Name will be displayed here.
Customer No (Displayed)   Customer No will be displayed here.
Order Number (Displayed)   Order Number will be displayed here.
Line No (Displayed)   Line No. of an Order will be displayed here.
Sub-Inventory (Displayed)   Sub-Inventory name will be displayed here.
Item (Displayed)   Item in the respective line of an order will be displayed here.
Released Quantity (Displayed)   Released quantity from an order will be displayed here.
Matched Quantity     Before matching this field will be blank and after matching this field will show the matched quantity.
UOM Displayed)   UOM of an item will be displayed here.
Line level      
Transaction Type (Displayed)   Transaction type like Receipts and Return will be displayed here.
Supplier Invoice No. (Displayed)   Supplier Invoice Number for a particular receipt will be displayed here.
Quantity in Receipt UOM      
UOM (Displayed)   UOM of the item in the Receipt line will be displayed here.
Received (Displayed)   Quantity received in a particular Receipt will be displayed here.
Available (Displayed)   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 manually enter number of quantity also here for matching.
Quantity in Issue UOM      
UOM (Displayed)   UOM of the item in the Issue line will be displayed here.
Available (Displayed)   Available Quantity in a particular Issue will be displayed here, this is equivalent to Available receipt quantity.
Apply (Displayed)   This represents the match quantity.
Receipt Number (Displayed)   Receipt Number will be displayed here.
Receipt Date (Displayed)   Receipt Date will be displayed here.
BOE Number (Displayed)   BOE Number will be displayed here in the case of Imported Receipt.
Vendor (Displayed)   Vendor Name will be displayed here.
Duty Per Unit (Displayed)   Excise Duty per unit as per receipt line will be displayed here.

Issue Tax Button

Through this button, the User can view the Issue Tax lines after saving the Matching Screen wherein Excise amount will be replaced by the Excise amount from Receipt tax line for the respective matched quantity.

User will be able to view the matched excise duty in this receipt. The actual zero adhoc excise duty attached in the sales order will be over written with the matched excise amount.

View Receipt Button

Through this button the user can view all matched orders against a particular Receipt.

Unmatching

The User can do un-matching of receipts by entering Zero quantity in the Apply column, then the Available Receipt quantity will be reinstated. (Please note that this feature is available only before saving and closing the form. In order to unmatch already saved transactions, use the UNMATCH feature provided in the Find window).

View RG 23 D Screen

After Fulfilled Orders Delivery, the User can view the Issue transactions through Manual RG 23D, then the User can Run AR interface and Auto Invoice in Receivables Modules to generate Invoices.

Unmatching Receipts - For Trading Item

This functionality is specifically provided to rectify user errors at time of Matching of receipts. However such delivery can be unmatched only if the same is not shipped. Unmatch of Shipped deliveries is not possible as tax impact is already over.

Field Description Type Action Description
Match Type (Required) PICK This is an LOV showing options of Match & Unmatch
Organization (Required) PICK This shows a list of Trading Organizations based on Localization setup
Order Type (Required) PICK This shows a list of Order Types that are available.
Delivery ID (Optional)   Delivery ID may be entered by the user from LOV for which the matching of receipt is already done but not shipped.
Delivery Detail ID (Optional)   Delivery Detail ID may be entered by the user from LOV for which the matching of receipt is done but not shipped. Leaving this blank will result in un-matching of all lines pertaining to the given delivery.

Manual RG 23 D Entry

RG 23D Manual Entry is a view / entry form that can be used to view/enter the Manual RG 23D transaction. It displays on query all the transactions that have an entry in the RG 23 D register sorted on the Year & Serial Number. Each Trading inventory organization is considered as Excise Unit. Thus, you 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.

The Remarks column is editable for all the transactions & can be effectively used for recording any comment to be made against specific Transactions.

India Local Order Management Setup Registers Manual RG23D Register Entry

The field wise description for the screen is given below.

Field Description Type Action Description
Header Level    
Organization Required PICK HELP The User needs to enter Trading inventory organization name from the LOV for which he wants view the RG23D entries.
Location (Required) PICK HELP The User needs to enter Location for the above Trading inventory organization from the LOV for which he wants view the RG23D entries.
Transaction Type (Required) PICK HELP The User needs to specify the transaction type like Receipts, Return to Vendor, Issue, Return for which he wants view the RG23D entries.
Item (Required) PICK HELP The User needs to specify the Item for which he wants view the RG23D entries.
Line Level     The following information will be displayed for a entered receipts for selected item in a Trading Organization Location.
SL.No (Displayed)   System generated Serial Number will be displayed here.
Comm. Invoice Number (Displayed)   Excise Invoice Number of the Supplier entered in the Receipt lines will be displayed here.
Date (Displayed)   Date of the above Excise Invoice of the Supplier will be displayed here.
Bill of Entry Number (Displayed)   Bill of Entry number for Import receipts will be displayed here.
Supplier Name (Displayed)   Name of the Supplier will be displayed here.
Supplier Address (Displayed)   Supplier Address (Pay Site) will be displayed here.
Transaction Quantity (Displayed)   Quantity in the transaction
UOM will be displayed here.
Transaction UOM (Displayed)   Transaction UOM will be displayed here.
Quantity Received (Displayed)   Quantity transacted in Primary UOM will be displayed here.
Primary UOM (Displayed)   Primary UOM of the transacted item will be displayed here.
Rate of Duty (Displayed)   Rate of Duty will be displayed here.
Duty per Unit (Displayed)   Excise Duty per unit for a particular receipt will be calculated and displayed here. This is allowed to be changed for a receipt if the same has not been matched to any delivery.
Total Duty Amount (Displayed)   Total Excise Duty amount for a receipt will be displayed here. This will get recalculated if there is a change in Duty per Unit for an unmatched receipt.
Balance quantity (Displayed)   Balance available quantity after a particular receipts will be displayed here.
Remarks (Optional/Enterable)   Remarks regarding a transaction can be entered here.

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

Reports

RG23D Register Report

This Report gives the complete details of RG23 D Register as per Central Excise Act, for an Item

Report Submission

Use the Request Reports others (OE & AR modules) form and enter India-RG23 D Report in the Name field to submit the report.

Organization (Required, Default) PICK HELP

Enter A Organization, you wish to take the RG 23D Register Report for.

Location (Required, Default) PICK HELP

Enter a Location, you wish to take the RG 23D Register Report for.

Transaction From/To Date PICK HELP

India Localization allows the user to print selectively the transactions from a given date on wards.

Inventory Item (Optional) PICK HELP

Enter a specific Item for which you want to take RG 23D, otherwise Report for all the items will taken.

Report Headings

Report headings provide you with general information about the contents of the report. Oracle lists information as given in the report format of RG RG23D Registers.

Column Headings

In the Receipt side

S.No

Serial Number for an Item in the Register will be reported

Supplier Invoice and BOE No.

Supplier Invoice (Excise Invoice) will be displayed here. If the Receipt is Import one, then BOE Number for the Receipt will also be reported

Name and Address of the Supplier

Name and address of the supplier and his Excise Registration details will be reported

Quantity

Receipt Quantity will be reported

Rate of Duty

excise_duty_rate will be reported

Amount of duty per amount

Excise Duty per Unit will be reported

Total Amount of duty

Total amount of Excise duty on receipt will be reported

In the Issue side

Name and Address of the Customer (Consignee)

Name and address of the Customer if he is a consignee will be reported here and his Excise Registration details will also be reported.

Name and Address of the Customer

Name and address of the Customer (Other than consignee) will be reported here and his Excise Registration details will also be reported

Quantity

Issue Quantity will be reported

Amount of duty per amount

Excise Duty per Unit will be reported

Total Amount of duty

Total amount of Excise duty on receipt will be reported

Balance Quantity

Balance Quantity for an Item at the end of the report date will be displayed.

Quantity Remaining / Matched

Against a Receipt entry, the values of quantity available for matching against the particular receipt and quantity already matched shall be shown in this column