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Oracle Financials for India User Guide
Release 12.1
Part Number E13658-03
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India Local iProcurement

This chapter covers the following topics:

India Local iProcurement Overview

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.

Major Features

Processing iProcurement Transactions

User Authorizations

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.

iProcurement Transaction Flow

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:

  1. Purchase Requisitions in SSWA

  2. Auto Create Purchase Order in forms

  3. Approve the Purchase Order in forms

  4. Receipts or correction in SSWA

  5. Apply BOE in forms or Accounting in SSWA

  6. If you applied BOE, proceed to claim CENVAT in forms. If you chose accounting, proceed to update item cost for NR taxes

  7. After claiming CENVAT, make register or accounting updates in forms

  8. Claim VAT

  9. Make accounting or repository update

  10. Proceed to Returns


Oracle iProcurement provides following functionality in requisitions:

Requisition Review

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:

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.

Requisition Creation

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.

Requisition Review and Submit

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.

Requisition Change or Cancellation

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

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.

Viewing Purchase Order Details

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.

Purchase Order Change Requests

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.

Approving Purchase Order Changes

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:

Receipts Creation

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:

Advanced Shipping Notice and Advanced Shipping Billing Notice

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

Receipt Corrections

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.