| Oracle® Retail Fiscal Management User Guide Release 14.2 F29358-01 |
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This user guide provides you information on how to effectively use Oracle Retail Fiscal Management (ORFM).
This chapter contains the following information:
The movement of merchandise has to be accompanied by a fiscal document called Nota Fiscal (NF). The shipping location has to generate the NF. When the truck arrives at its destination, and before the physical receiving of the merchandise, the NF has to be validated against the Purchase Order (PO) and the Brazilian fiscal system, in order to ensure that all the taxes are applied correctly.
An introduction to Nota Fiscal (NF) and Nota Fiscal Eletrônica (NF-e) can be found in the Oracle Retail Fiscal Management Implementation Guide.
ORFM system enables you to verify the merchandise costs, quantities, and taxation details before payment. In ORFM, data can be entered manually, through Electronic Data Interchange (EDI), and the new electronic Invoice Receiving Layer (IRL). It integrates all the fiscal operations of the Brazilian fiscal system into RMS. It deals with creation of, and the receiving process of Nota Fiscal (NF), in addition to the issuing and printing of NF.
ORFM supports the following fiscal business operations:
PO Receiving – This is the regular buying process of a retailer. The retailer issues a purchase order (PO) when buying the merchandise from a supplier. When the merchandise is received, this merchandise is matched against the related PO in order to verify that the receiving merchandise has the items that the retailer has bought from the supplier. The retailer issues a PO when buying the merchandise from a supplier.
In case of discrepancies, the ORFM application supports resolving the cost, quantity and tax discrepancy. For more information on how the application resolves the discrepancies, refer to the Discrepancy Identification and Resolution Process.
Transfers – Transfer is the movement of merchandise from one location to another, either a warehouse or a store. When the transfer is issued, ORFM creates and issues the related NF (based on the transfer information) for the merchandise to be transferred out. After the merchandise is shipped and received in the other location, another inbound NF is created to receive the merchandise in the receiving location.
Return to Vendor (RTV) – This business process needs the creation and issue of a NF in order to return the merchandise to the supplier. The ORFM application issues a NF for the merchandise to be sent back to the supplier.
Return from customers or Return Merchandise Authorization (RMA) – When customer returns merchandise, the retailer issues a RMA in order to receive the merchandise in the store. Since this operation involves the movement of merchandise, a NF has to be issued to receive it.
Triangulation Purchase Order – Triangulation is a process where in the retailer creates the PO with the main supplier to whom the payment is made. However, another supplier (a distributor or facilitator) delivers the stock on behalf of the main supplier (referred to as the delivery supplier).
In the inbound PO process, additional validations and matching of quantity, tax and cost need to be carried out before physical receiving of merchandise. If there are any discrepancies during fiscal receiving, the retailer must resolve and validate the correctness of the NF before approving the physical receipt.
The overall discrepancy identification and resolution process can be further divided into the following sub-processes:
Validation Process – The validation process includes validating the NF for errors like incorrect CFOP, header totals, etc. If there are errors on the NF, it is logged in the Error Log window. The NF has to be manually edited to resolve these errors, and the NF has to be re-validated. The validation process has the following three steps:
Data Integrity Validation – In this process, all the NF totals are matched with the unit cost and quantity entered. This process takes into account the line item level and header level discounts, non-merchandise cost, insurance, miscellaneous expenses, and taxes while comparing the totals. If the data integrity validation fails, the NF will be in Error status.
Tax Engine Call for Tax Breakup – A call is made to the Tax Engine for comparing the taxes on NF with system calculated taxes. The taxes returned by Tax Engine are stored at the individual item level. In case of any error during the Tax Engine call, status of the NF is changed to Error, and it has to be validated again.
Discrepancy Identification – In this process, the unit cost and quantity of each item and the taxes on the NF are compared with the corresponding values in the system. Any discrepancy identified during this process, the discrepancy indicators are marked appropriately on the NF header. The quantity or cost discrepancy between the purchase order and NF, and tax discrepancy on the NF and the tax returned by Tax Engine is identified during this process. For tax discrepancy, the ORFM application validates that the NF has used the correct tax rules to calculate the taxes.
Discrepancy Resolution Process – Any discrepancies identified during the discrepancy identification process are available in the Discrepancy Resolution window. These discrepancies have to be resolved manually. In a centralized operation it is mandatory to resolve quantity discrepancies in order to proceed with physical receiving. In case of a de-centralized operation it is mandatory to resolve all discrepancies (cost, quantity and tax) in order to proceed with physical receiving to complete the receiving process.
Generation of Return NF, and Merchandise without NF Report – If the NF quantity is greater than the related PO quantity, a return NF is generated, which is for the supplier to take back the exceeded stock. Sometimes, the merchandise is returned at the point of receipt in order to reduce shipping costs. The calculation of Return NF quantity and Merchandise without NF quantity is done after the physical receiving is done.
Generation of Correction Letter – A correction letter is generated when the PO cost/quantity/tax is different from the NF cost/quantity/tax, and the PO cost/quantity/tax is considered to be correct. The correction letter, with the PO values as the NF values, is automatically generated after all the discrepancies are resolved, depending on the discrepancy resolution action.
