This chapter covers the following topics:
IL support for iProcurement satisfies all tax needs of corporate requestors by providing tax links in existing base iProcurement transactions. Tax Codes defined in India Localization setups can be used in iProcurement transactions. Taxes get defaulted on iProcurement Requisitions, Receipts including ISO Receipts, Returns and Receipts Correction transactions based on the India tax defaulting hierarchy. These taxes can be viewed or modified based on the user access authorization assigned to you.
Tax calculation and tax accounting operations available in India Local Purchasing are also applicable to iProcurement. You can view accounting entries passed for iProcurement Receiving transactions using the IL forms. In case of Excise and Value Added Tax (VAT) type of taxes, CENVAT and VAT recovery claim can be done using India Localization forms. Excise registers and VAT repository gets updated appropriately on completion of CENVAT and VAT claim process.
IL support to iProcurement also facilitates application of Bill of Entry (BOE) payments to Receipts created in iProcurement. The Receipt can be fetched in the Receipt Localized form for application of Customs Duty against the advance BOE payment made to the authority.
User Authorization for Tax Review: Only authorized users are allowed to modify sensitive tax information on iProcurement Requisitions and Receipts.
Defaulting Taxes to iProcurement Requisitions: For Items that attract Localization Taxes, Taxes will be defaulted on the iProcurement Web UI when a Requisition is created. These taxes will be defaulted based on the Tax Defaulting Rules. Taxes would be defaulted automatically based on Item Category assigned to the Supplier – Supplier Site; Supplier – Null Site or based on the Item Class assigned to the Tax Category for the Supplier. Taxes applicable to an Agreement shall be defaulted on shopping a specific item attached to a Blanket Purchase Agreement / Contract. In case of Non-Catalog Requests, taxes need to be added manually as tax defaulting mechanism in IL is available only to items with Inventory Setups.
Manual Changes to Defaulted Taxes to iProcurement Requisitions: Taxes defaulted during iProcurement Requisition can be modified manually in case of a need, depending on your Authorization. New taxes can be added or existing taxes modified or deleted based on your Authorization levels. You can define or modify precedence logic for calculation of Tax Base Amount on which the Tax Rate would be applied. The Tax Base Amount can either be the line amount or line amount including other taxes calculated for the transaction.
Taxes Applicable at the Time of Receipt: When material is received against Requisitions, the taxes defined at the PO level get defaulted proportional to the quantity received. You can modify the taxes defaulted on Receipts based on your Authorization. Localization provides the functionality to modify the taxes at the time of receipt on completion of base iProcurement Receipt. Tax changes are not allowed once you commit the tax changes and initiates the tax accounting process. But taxes amounts are displayed against each receipt line to enable viewing.
CENVAT and VAT claims: CENVAT and VAT claims can be made for the iProcurement Receipt using ‘MODVAT on Receipts India’ and ‘VAT-Tax Claim’ forms respectively. All India tax inputs provided in iProcurement shall be fetched to the receipt form automatically.
Application of Bill of Entry (BOE) at the Time of Receipt: Provision to apply the BOE to the receipt is provided similar to CENVAT and VAT claims. You need to navigate to the IL Receipt form to identify and apply the BOE payment against the particular Receipt. The Bill of Entry can only be applied against the customs duty type of taxes (i.e. Basic, Counter veiling Duty and Additional Customs Duty) attached to the iProcurement Receipt.
Advance Shipment Notice (ASN) or Internal Sales Order (ISO) Receipts: Oracle iProcurement supports multiple receipts against In-transit Shipments (ASN shipments and ISO receipts). IL only supports creation of single receipt against an ASN / ISO. IL support to iProcurement defaults India taxes on these shipments on receiving.
Receipt Corrections: iProcurement provides the functionality of receipt corrections. On performing receipt corrections to receipts in the base iProcurement application, corresponding modifications are made to the Cenvat or VAT or Tax costing entries as these taxes have already been processed in India Localization.
A new profile name specific to iProcurement for India taxes is added to System Profile Values to restrict tax modification and entry. Authority to modify taxes in iProcurement is controlled by ‘JAIN:Access iProcurement Tax information’. The default value for this profile is set to ‘NO’ implying No Access to modify India taxes during the iProcurement process flows. System Administrators should set the profile to each iProcurement user with appropriate values to ensure the proper user authorization levels.
Oracle iProcurement module handles limited functions of procure to pay cycle. You have to switch between the forms and the self-service applications (SSWA) to complete the procurement function. You should note that any changes made in the India taxes either in Forms or SSWA would get reflected in the other immediately.
The iProcurement process flow:
Purchase Requisitions in SSWA
Auto Create Purchase Order in forms
Approve the Purchase Order in forms
Receipts or correction in SSWA
Apply BOE in forms or Accounting in SSWA
If you applied BOE, proceed to claim CENVAT in forms. If you chose accounting, proceed to update item cost for NR taxes
After claiming CENVAT, make register or accounting updates in forms
Claim VAT
Make accounting or repository update
Proceed to Returns
Oracle iProcurement provides following functionality in requisitions:
Reviewing Requisitions
Creation of Requisition – Searching and adding items (from local or supplier catalogs) to the shopping cart can create Requisitions. On checking out, system creates a requisition using the items added to the shopping cart.
Cancellation or Changing existing Requisition
In the Requisition Review flow, India Localization tax button or links are made available in the following pages for authorized users against individual Requisition lines:
My Requisitions page: Navigate to Indial Local iProcrement > Shops > Stores.
Requisitions Summary page: Navigate to India Local iProcurement > Requisitions > Requisitions.
Requisitions Lines page: Navigate to India Local iProcurement > Requisitions > Drill Down on Requisition Number.
Clicking these links, will display the India Localization Taxes for Requisitions page with the corresponding tax details.
Note: In the Requisition Review flow, tax details page will be displayed in View Only mode.
In the requisition creation flow, India Localization Taxes can be added during the check out process in the Checkout: Requisition Information page. Navigate to India Local iProcurement > Shop > Stores > Checkout: Requisition information. Click View/Update India taxes to navigate to the Oracle Financials for India Tax details page. India Localization Taxes page lets you add India Taxes with desired precedence for calculation. Taxes are defaulted automatically when Item or Tax categories are mapped to the Supplier, Supplier Site or Item Class. Apart from the defaulted taxes, you can add new tax lines through Add New Tax. You can also option to delete a particular tax line that is not required. Provision to modify the defaulted taxes is available only to Authorized Users.
Note: Authority to modify taxes is based on the User Profile Options assigned to you. For more details on User Profile Options refer User Authorization.
Whenever India Local Taxes are applicable, Taxable field should always be set to ‘NO’ in the Billing section of Requisition Information page.
India Localization taxes can also be viewed and edited in the Checkout: Review Approver List’ page during the Checkout process. Navigate to India Local iProcurement > Shop > Stores > Checkout: Review Approver List.
In the ‘Checkout: Review and Submit Requisition’ page during the Checkout flow, Localization taxes are displayed against each line item of the requisition with a facility to drill down to the detailed view. Taxes can be modified at this stage also depending on your user authorization. No further modifications are allowed on completion of Requisition checkout as the status is updated to ‘Approved’. However you can view India tax amounts and the Tax details in the Requisitions Lines page. Total India tax amount is displayed for each requisition line in the Printable Page provided in ‘Checkout: Review and Submit Requisition’. Navigate to India Local iProcurement > Shop > Stores > Checkout: Review and Submit Requisition.
Oracle iProcurement provides facility to Change or Cancel the approved Requisitions. When Requisitions quantities are changed in iProcurement, all India Taxes get recalculated based on the revised quantity automatically. In case of Cancellation of Requisitions, India Taxes attached to the cancelled requisition are also cancelled simultaneously.
Purchase Orders can be auto-created based on the Purchase Requisitions created in iProcurement. The Taxes provided in the Requisition gets defaulted to the Purchase order automatically. You can modify these taxes using the IL Purchase Order form.
Navigate to India Local iProcurement > Requisitions > Requisition Summary - Order Link. Oracle iProcurement provides links to view details of Purchase Orders created using iProcurement Requisition Summary page. India Localization tax links are also made available in the Purchase Order details page. India Localization tax amount and details will be displayed in a view only mode for each purchase order line in this link page. You can navigate to the Purchase Order India Tax details page by clicking these links available in the Requisition summary page.
Navigate to India Local iProcurement > Requisitions > Requisition Summary > Change Requisition. Changes can be made to Requisitions on approving the Purchase Order created by submitting an iProcurement Requisition Change Request. The Change Request page accepts the modifications made by you and highlights the changes by indicating both Original and Changed values before Submission. In case of multiple changes, all modifications made to the requisition are displayed with appropriate icons to identify the last updated values.
Navigate to India Local iProcurement > Requisitions > Notifications > Open Change Requisition Notification. Authorized Approver can Approve, Reject or Reassign the submitted Change Request by opening the appropriate Notification.
On Approval, all changes made to the Requisition are effected to the PO automatically. Existing India Localization functionality ensures that corresponding changes are done to related tax lines based on the changes affected to the Requisition.
On Rejection, changes made to the Requisition are deleted without affecting the Purchase Order details. Original Taxes that were calculated remain unaffected.
Oracle iProcurement has following functionality in receiving:
Create receipts – Users can create receipts against orders in Oracle iProcurement. For an order to appear in the receiving module it must have a receipt routing of Direct Delivery (cannot create receipts against orders with a receipt routing of Standard or Inspection). It is also possible to receive against In transit Shipments (ASN shipments and ISO receipts).
Create Returns
Perform Corrections
Navigate to India Local iProcurement > Receiving > Requisition to Receive > Receive. In the iProcurement receipt process flow, India tax entry or update interface will be available to you, depending on your User Authorization, after the base item receiving details are entered and the receipt process is completed. India taxes can be viewed or updated using View/Update India taxes link available against each receipt line on confirming a base iProcurement receipt. Similar to Requisitions, Taxes are defaulted automatically based on the India Tax Defaulting Hierarchy – from Purchase Order as in the case of normal receipts created using the form-based functionality.
Navigate to India Local iProcurement > Receiving > Requisition to Receive > View/ Update India Tax to open the India Tax page. You can add new tax lines and delete the defaulted taxes when not relevant. This page allows only Authorized Users to do receipt tax modification, particularly to add third party taxes, Supplier Name and Supplier Site depending on Organization level parameter Allow Tax change on Receipts and User Authorization. It also facilitates modification of tax precedence.
On completion of modification, the taxes can be recalculated and saved. Changed made to the India taxes can also be ignored when not necessary. This action should however be done before saving the changes. On Completion of the Receipt, accounting entries and costing for all non-recoverable taxes gets effected through India Local concurrent program ‘India Receiving Transaction Processor’ which is automatically launched on completion of the above mentioned web process.
Note: You must note the following in case of an iProcurement Receipt:
CENVAT and VAT Claim need to be done using the existing India Localization forms as per the existing IL processes.
BOE application process needs to be done separately in the BOE application form available in IL Receipts after the receipt is created in the iProcurement Web process.
Oracle iProcurement supports Receiving based on ASN/ASBN created from the iSupplier portal. Navigate to India Local iProcurement > Receive Items. You can receive items referring the ASN/ASBN Shipment Number created by the supplier in the supplier portal. The shipment number is defaulted against the Order with a facility to view the ASN/ASBN details.
If the ASBN is created using the India Localization iSupplier solution, India Localization taxes can be assigned to the ASBN. When receipt is created in iProcurement using such an ASBN number, taxes attached to the ASBN are defaulted to the receipt instead of directly from the Purchase Order.
Note: You should note the following in case of ASN / ASBN receipts
The referred ASN/ASBN should be in ‘PROCESSED’ status in iSupplier. To make a receipt of the ASN/ASBN in India Local iProcurement you should run the ‘RECEIVING TRANSACTION PROCESSOR’ concurrent in Forms.
Taxes defaulted from the ASBN cannot be modified at the iProcurement Receipt. Further only third party or customs type of taxes can be added to an ASBN receipt.
India Localization does not currently support creation of multiple Receipts against a single ASN/ASBN.
iProcurement provides the functionality of receipt corrections in the Receiving home page. You can select "Correct Items" and proceed to correct an existing receipt. The existing India Localization process of running the concurrent “India Receiving Transaction Processor “ after Receipt corrections is also applicable to iProcurement Receipt Corrections. You can run this concurrent using the IL Requests form after making necessary Receipt corrections. The concurrent will make the necessary modifications to the India Localization registers, accounting and costing records based on the receipt corrections done in iProcurement.
Navigate to India Local iProcurement > Receiving > Returns > Return Confirmation. iProcurement provides the functionality of receipt returns in the Receiving home page. You can select "Return Items" and proceed to return quantities of an existing receipt to the Supplier. Returns processing of India Localization Excise / VAT taxes must be done using the Return to Vendor (India) form by querying the concerned receipt.
India Localization support for iProcurement do not involve any additional reports at the iProcurement solution. Existing India Localization reports available in the form based functionality need to be used for all reporting purposes.