This chapter covers the following topics:
The Purchase to Pay (P2P) cycle comprises of the following steps:
Create Requisition (Localization taxes are applied)
Create RFQ (Localization taxes are applied)
Create Quotation (Localization taxes are not applied)
Create Purchase Order (Localization taxes are applied)
Create Receipt (Localization taxes are applied). Taxes are frozen once receiving is done
Create Payable Invoice - Localization taxes from receipts are copied to Invoice
Invoice Payment
Every organization that operates a business has to purchase materials such as raw materials and services. The procurement process of any organization consists of many steps like material requirement planning, purchase requisition creation, receiving quotations from various suppliers and so on. Following topics detail the steps:
Create Requisition -- Enter the required information in the Header and Line fields.
Navigate to India Tax Details window, using Tools > India Tax Details. Tax category is defaulted based on defaulting mechanism specified.
Create RFQ -- Tax category is defaulted from the requisition.
Create Purchase Order and Approve.
Navigate to India Tax Details window using Tools > India Tax Details. Tax category is defaulted from requisition to Purchase order.
A purchase requisition is an internal request to purchase a material or service that details certain quantity of material or service on a certain date which is required by the organization. To create requisition:
Navigate to Requisitions window using (N) Responsibility > Oracle Purchasing > Requisitions > Requisitions.
Enter Requisition Header details:
The header holds general information about a requisition that is related to all the lines. Choose the requisition type (here it is purchase requisition). The person who prepares the requisition is the default person and cannot be changed. Provide the description in the field.
Enter Requisition Line. In the requisition line:
Select the item that you want to purchase and enter the quantity and need by date.
In the Source details tab, enter detailed information.
Enter specific note to the buyer which might give particular information related to this purchase.
RFQ required check box denotes that the purchase of the item requires a request for quote.
Requisitions can be added in any currency set up in the E-Business Suite application by identifying the currency code and exchange rate type on currency tab.
Close the window and save your work.
Click the Approve button to submit this requisition for approval.
Now navigate to Tools > India Tax Details window. The India Tax Details window shows the default tax category.
A Request for Quotation (RFQ) is a formal request sent to the suppliers to find the pricing and other information for an item or items. Based on the information supplied, the supplier quotes a quotation against the RFQ window.
In Oracle E-Business Suite, RFQ's can be auto created from an existing Purchase Requisition or enter then new.
Navigate to the Auto Create Requisition number window by using (N) Responsibility > Oracle Purchasing (USA) > Auto Create, and then query the Requisition number.
The Requisition summary displays.
Select your Requisition line.
In the Document Type, select RFQ and click Automatic button to Auto Create RFQ.
It the next window, select RFQ Type as Standard RFQ and click create button.
Select the line against which RFQ needs to be created.
Select the RFQ Requisition Quote that is auto-created from the existing Purchase requisition.
Click Suppliers and enter the details of the Suppliers to whom you want to send this RFQ.
Click on Terms button and add payment terms and freight terms.
Click Price Breaks option for entering pricing information for the RFQ.
On the India Tax Details window, you can see the default tax category.
Save the transaction.
A quotation is a supplier's response to Request for Quote (RFQ). Quotations are created based on responses from suppliers that are relevant to RFQ.
To create a quotation from the RFQ, first query the RFQ. The below picture shows the completed RFQ:
Navigate to Tools > Copy Document.
In the next window, enter the details of quotation sent by the supplier. Click OK button. Repeat the same steps if you want to create multiple quotation for multiple suppliers.
Once the quotation is created, the system displays a status message.
Change the status of the quotation to Active and approve the quotation.
Purchase Order (PO) is the formal request to a vendor to supply certain materials or services. A PO can be created with reference to a requisition or RFQ or another PO.
Navigate to Auto Create Documents using Oracle Purchasing > Auto Create and then query the Requisition number.
Select Document type as Standard PO.
Your Requisition summary is shown in the next screen. Check box your Requisition line and in the Document Type, select standard PO and click Automatic button to Auto Create PO. By clicking Automatic button, a standard PO is created based on the details provided in the Purchasing requisition. You can select Supplier either in the New Document form or in the Purchase Order window
Click the Create Button to confirm the PO creation
After clicking on the Create button in the above screen a Standard PO is created as follows
In the shipment window, Shipment number, Organization, Ship-to, UOM, Quantity and Need-by-date are shown by default. You can edit these fields. In More and Distribution Details tabs, the default values are populated from requisition.
Navigate to India Tax Details window, using Tools > India tax details.
The default tax category displays from requisition.
Approve the PO. No accounting entry happens when a PO is created.
The tax is defaulted and recalculated at every document level. If the tax is already defaulted or manually overridden at the parent document level, then the same tax category gets defaulted for further documents until unless there is a change. If the master document does not have the tax category attached, then based on the tax defaultation logic the tax category is defaulted at each document level.
Once the PO is sent to the supplier, the supplier sends the goods to the organization. The goods now have to be received in Oracle.
Select the PO line -- Enter Inventory details
Navigate to Tools > India Tax Details. Tax category is defaulted from PO level.
Check on Confirm Taxes option to freeze the tax category and it is a mandatory check.
Navigate to Receipt window and Save the receipt
Receiving Transaction processor is run and it processes Base and Localization tax details
To create a receipt:
Navigate to Receipts window using, Responsibility > Oracle Purchasing > Receiving > Receipts
Enter the PO number and click Find.
Select the line against which receipt must be created.
Shows the PO details against which receipt is created.
Check the Lines you want to receive and enter the sub inventory details
Purchasing tab displays the following detail information for the current shipment line: Order Type, Order Number, Source, Due Date, Item Description, Hazard, Destination, UN Number, Receiver Note, and Routing. You can see the tax category defaulted in the India Tax Details window
Select Confirm Taxes option to freeze the tax category. You cannot override the tax category after this.
If a receipt is saved without checking the Confirm Taxes option, then the Receiving Transaction Processor ends in an error and no receipts are created.
In GST solution 'India Receiving Transaction' Processor program will not be triggered and has no relevance.
Once the check box is checked, below message will appear
Confirm Taxes option needs to be checked to freeze the taxes before receipt creation
Confirmation message once the taxes are frozen.
Click on Header and save the receipt to get the receipt number
Once the receipt is saved, the system automatically triggers the Receiving Transaction Processor (RTP) concurrent process. It processes the India localization tax details.
Based on the tax point basis, tax types like recoverable or non-recoverable, different routing method adopted, different accounting entries are generated at different stages.
The accounting entry generated after the receipt creation and this is the core accounting
| Event | Account | Debit | Credit |
| Receipt | Receiving Inventory | Line Amount | |
| Inventory AP Accrual | Line Amount |
Create PO > Receipt Routing set to
Direct Delivery
Navigate to India Tax Details window by using Tools > India Tax Details. Attach Category recoverable or Nonrecoverable.
Navigate to Receipt form and select the PO line for receipt creation
Navigate to India Tax Details window by using Tools > India Tax Details. Check Confirm taxes option.
Receiving Transaction processor concurrent process is run and it will process Base and localization tax details. Both Receiving and Delivery transaction are created.
Lines are inserted in GL_INTERFACE table for tax accounting (refer query mentioned in Chapter 8 to extract the data)
Standard Routing
Navigate to India Tax Details window by using Tools > India Tax Details. Attach Category recoverable or Nonrecoverable.
Navigate to Receipt form and select the PO line for receipt creation
Navigate to India Tax Details window by using Tools > India Tax Details. Check Confirm taxes option.
Receiving Transaction processor concurrent process is run and it will process Base and localization tax details. Both Receiving and Delivery transaction are created.
Lines are inserted in GL_INTERFACE table for tax accounting (refer query mentioned in Chapter 8 to extract the data)
Perform the Receiving transaction by navigating to Purchasing > Receiving > Receiving transactions
When a recoverable tax category is attached, in India tax details window (both at PO and receipt level) the Recoverable option is checked and recoverable amount is populated.
Recoverable option is checked and the amount is calculated.
Note: For a tax type to be recoverable, perform the following setup:
Check the Recoverable option at Tax type Setup
Set the Recoverable option to Yes in the item classification setup
Define the Claim term for the Tax type
If any of the setup is missing, then the tax type is treated as a non-recoverable tax.
When a non-recoverable tax category is attached, in India tax details window (both at the PO and receipt level) the Recoverable option is unchecked and recoverable amount is not populated.
Recoverable option is unchecked and the amount is not calculated.
The accounting entry generated in GL_INTERFACE is:
| Event | Account | Debit | Credit |
| Receipt | Tax Interim Recovery | Tax Amount | |
| Inventory AP Accrual A/C | Tax Amount |
The accounting entry generated in GL_INTERFACE is:
| Event | Account | Debit | Credit |
| Recept | Receiving Inventory | Tax Amount | |
| Inventory AP Accrual | Tax Amount |
The accounting entry generated in GL_INTERFACE is:
| Event | Account | Debit | Credit |
| Receipt | Tax Interim Recovery | Tax Amount | |
| Inventory AP Accrual A/c | Tax Amount |
The accounting entry generated in GL_INTERFACE is:
| Event | Account | Debit | Credit |
| Receipt | Receiving Inventory | Tax Account | |
| Inventory AP Accrual | Tax Account |
The non–recoverable tax amounts need to be added to item cost. So after delivery transaction, lines are inserted in MTL_MATERIAL_TRANSACTIONS (MMT) and MTL_TRANSACTION_ACCOUNTS (MTA). For more information on queries that can be used to find out the details of the lines inserted in the MMT and MTA tables, refer document 1065343.1
Period End Accrual functionality which is not supported in current architecture will not be supported even in GST solution.
In Oracle Payables an invoice is created by using the purchase order and receipt information from purchasing system to enable online matching with invoices. Invoiced or billed items are matched to the original purchase orders or receipt created to ensure that invoice is created only for goods or services you ordered and or received.
Flow
Create Invoice > Match Action Receipt
Click on Match option > Select receipt > Click on Match button
Line or distribution details are defaulted from Receipt level to Invoice
Navigate India Tax Details window using Tools > India Tax Details. The tax category is defaulted from Receipt to invoice
Since Tax point basis was Delivery, the taxes are frozen in India Tax Details window
Validate and Run Create accounting
Create Payables invoice
Navigate to Invoices window using Responsibility: Payables > Invoices > Entry > Invoices to create an AP invoice.
Create an Invoice for supplier against whom a PO or receipt is created.
Invoice Header
In the Invoice header level, select the operating Unit, invoice type and enter the PO number. Once you select the PO number, supplier name and Site are defaulted from the PO.
Matching Receipt to the invoice
To create a receipt matched invoice, the match type in Invoice header should be Receipt. Match Action is set to Receipt
You do not enter the invoice line or distribution details as this comes automatically from matching the invoice with the receipt.
Query the Receipt
Click on Match button in the Invoice workbench and query for the Receipt to match the invoice and click on find.
Select the line which needs to be matched to the invoice and click on Match button
See the line details and Distribution details at invoice level that are automatically populated from the PO or receipt.
When you look at the India Tax Details window (using Tools > India Tax Details) you can see the taxes that are defaulted at receipt are also defaulted at invoice level too. Tax Point basis is set as Delivery.
Validate the invoice and run Create accounting. Accounting entry generated.
The accounting class for the tax type is set as 'Miscellaneous'.
Standalone AP Invoices are raised for non-item based expense or service activities and they will not have any reference to any purchasing documents like PO, receipt and others. These invoices are directly created in invoice workbench by manually entering the supplier details and distribution details.
As Item information is not available for such invoices, Item-based taxes are not applicable for standalone invoice.
Flows
On the Invoice window, enter the header details like invoice type, Supplier Name, site and so on.
Click the Line Items and fill the line level and distribution details.
Navigate to India Tax Details window, using Tools - India Tax details.
Select the Organization and location. This is needed for adding taxes and tax defaultation, if any.
Validate and Account the invoice
Lines are inserted in GL_INTERFACE table for tax accounting (refer query mentioned in Chapter 8 to extract the data)
Tax details can be viewed in India Tax Details window to View accounting (Accounting class Miscellaneous Expense).
Navigate to Invoices window by using Oracle Payables > Invoice > Entry > Invoices.
On the Invoice header level, select the operating Unit, invoice type, Supplier name and site details.
Navigate to Line level details and enter the Line and distribution Details.
Navigate India Tax Details window using Tools > India tax details.
Enter the Organization and Location details
Tax Category is defaulted.
The tax point basis is Invoice
Based on the tax default rule setup, the tax category is defaulted automatically.
Once the Organization and location details are entered, save the transaction and navigate back to invoice work bench and validate and Account the invoice. The accounting entry generated at this stage is:
Tax lines are generated with accounting class as Miscellaneous Expense.
You can select the Tax Point Basis (TPB) while defining Tax Types based on which the accounting happens differently. Similarly, the recovery process is done at different stages based on the Tax Point Basis. Those are:
Flows
Create PO Enter header or line details
Navigate India Tax Details using Tools > India Tax Details. Attach tax category with Recoverable tax type and TPB as Delivery
Navigate to Receipts window and select the PO line for receipt creation.
Navigate India Tax Details using Tools > India Tax Details. Check Confirm taxes option.
Receiving Transaction processor is run and it processes Base or Localization tax details
Lines are inserted in GL_INTERFACE table for tax accounting (refer query mentioned in Chapter 8 to extract the data)
Navigate to India Tax Details window using Tools > India Tax Details. From the Menu select Tools > Process Claims to open the Claims window.
Enter claim term details and click the > Populate values.
Select the lines which need to be processed. Enter claim term details, and click on Process option.
Lines are inserted in GL_INTERFACE table for tax accounting (refer query mentioned in Chapter 8 to extract the data)
The processed line status is changed from Pending Recovery to Recovered.
Once the receipt accounting is done, for a receipt with recoverable taxes. The accounting entry is generated in GL_INTERFACE is:
| Event | Account | Debit | Credit |
| Receipt | Inventory AP Accrual A/c | Tax Amount | |
| Inventory AP Accrual A/c | Tax Amount |
Navigate to India Tax Details window using Tools > India Tax Details once the receipt accounting is done to process recovery amount.
On the India tax details window, choose Tools > Process Claims.
In the Claim Details window, enter the tax invoice number and tax invoice date and enter the Action as Recover.
Click on Populate values option to default Tax invoice information details to each line level. Each line has the tax invoice number and the date information entered at the header level.
Select the tax line which you want to process or you can also choose, Select all, option if you want to process all of the tax lines. Before processing the field 'Intended Use' needs to be populated.
Enter Intended use option as Manufacturing or Non Manufacturing.
After all the information is entered, click Process.
Confirmation message for Recovery Processing displays.
Status of the tax line is changed from Pending Recovery to Recovered.
Only 50% of the tax amount is recovered and other 50% is pending for recovery the following month. That is because of the claim term GST Claim Term Setup.
Once the recovery is processed, the accounting entry is generated in GL_INTERFACE as shown:
| Event | Account | Debit | Credit |
| Receipt | Tax Recovery | Recovered Amount | |
| Tax Interim Recovery | Recovered Amount |
Note: Interim recovery to recovery – currently recovery process is manually done via process recovery option and this is an Interim Solution.
Third party invoice functionality provides provision to pay to the Vendor other than the PO Vendor. This is required for paying the services offered by other Vendors related to that PO. An approved Invoice for the Non-PO Vendor is created automatically when the invoice is created via payable open interface.
For using the third party invoice functionality, the tax type attached to the PO must have the Update vendor on transaction option checked at tax type definition.
Flows
Create a PO -- Enter header and line information.
Navigate to the India Tax Details window using Tools > India Tax Details. Attach tax category with Update vendor on transaction option checked.
Navigate to the Receipt window and select a PO line for a receipt creation.
Navigate to the India Tax Details window using Tools > India Tax Details. Change the party Name and party site at tax type level, Click apply. Click on Confirm taxes option
Four concurrent requests are triggered:
Receiving Transaction Processor
ADS (Pay On Receipt AutoInvoice)
Third party Payables Open Interface Import
Payables Open Interface Import
Lines are inserted in GL_INTERFACE table for tax accounting (refer query mentioned in Chapter 8 to extract the data)
Payables Open Interface Import – Imports Invoice for Item line for PO vendor and Third party Payables Open Interface Import – Imports Invoice for tax line for Non PO vendor
Validate and Account both Standard Invoice and Third party Invoice.
Create a purchase order with tax type which has Update Vendor on Transaction option enabled at the tax type setup.
In the Receipt window, before saving the receipt, navigate to India Tax Details window using Tools > India tax details.
Change the Party Name and Party Site to a Non-PO vendor.
Click Apply to save the changes.
Note: The third party vendor details are updated at the PO level and if it is updated at PO level, the same gets defaulted to receipt level as well.
Click Confirm Taxes option to freeze tax details.
After receipt is saved, the system automatically runs concurrent process, the program Third party Invoices - Payables open interface Import (Payables Open Interface Import) creates the Third party invoice against the Non-PO vendor and Payables Open Interface Import program creates the invoice against the vendor in the PO.
The output of the Third party Invoices - Payables open interface Import shows invoice for tax amount that has been created against the third party vendor. The output of Payables Open Interface Import program shows the invoice details created against the PO vendor.
Now in the invoice workbench, when queried, the invoice created against PO vendor displays the Item, tax amount in India tax details window even though invoice line level only item line amount is reflected.
Accounting is created for the third party invoice.
In a average costing organization, following accounting is generated:
After receipt Accounting
| Event | Account | Debit | Credit |
| Receipt | Interim Recovery A/c | Tax Amount | |
| Inventory AP Accrual A/c | Tax Amount |
After Recovery
| Event | Account | Debit | Credit |
| Receipt | Tax Recovery | Tax Amount | |
| Tax Interim Recovery | Tax Amount |
In case of recoverable taxes, the MTL tables will not be impacted or hit with the tax amount.
After receipt Accounting
| Event | Account | Debit | Credit |
| Receipt | Receiving Inventory | Tax Amount | |
| Tax Interim Recovery | Tax Amount |
Once the delivery transaction is done, MTL_TRANSACTIONS_INTERFACE table gets updated with nonrecoverable tax amount and the same gets added to item cost. Accounting entry at that stage will be
| Event | Account | Debit | Credit |
| Receipt | Material | Tax Amount | |
| Receiving Inventory | Tax Amount |
In a standard costing organization, following accounting lines are inserted in GL_INTERFACE table once the Receiving transaction is completed.
Accounting entry for PO receiving
| Event | Account | Debit | Credit |
| Receipt | Receiving Inventory | Tax Amount | |
| Inventory AP Recovery | Tax Amount |
Accounting entry for Delivery transaction is
| Event | Account | Debit | Credit |
| Receipt | Purchase Price Variance | Tax Amount | |
| Receiving Inventory | Tax Amount |
Note: In case of standard costing Organization, the MTL tables is not impacted or hit with the tax amount.
After receipt accounting, the accounting entry generated in GL_INTERFACE is
| Event | Account | Debit | Credit |
| Receipt | Interim Recovery | Tax Amount | |
| Receiving Inventory | Tax Amount |
Once the recovery is done, the accounting entry generated in GL_INTERFACE.
| Event | Account | Debit | Credit |
| Receipt | Recovery | Tax Amount | |
| Interim Recovery | Tax Amount |
There is no relevance of PO destination in GST architecture. Whether the destination is Expense or Inventory the accounting treatment is the same.
The accounting impacting on costing and OPM remains same as it is in current architecture.
Reverse Charge is the liability to pay tax by the recipient of supply of goods or services instead of the supplier of such goods or services in respect of such categories of supplies as notified under sub-section (3) of Section 8. Under Goods and Services Tax, Reverse charge functionality is introduced both for Goods and Services. Accordingly, all other provisions of this Act and CGST Act, as applicable, apply to the recipient of goods and or services, as if the recipient is the supplier of these goods and or services, that is, for the limited purpose of such transactions, the recipient would be deemed be the supplier.
Reverse Charges are captured on Prepayment.
Reverse Charge functionality on Prepayment includes the following:
The Reverse Charge is calculated as the Self Assessed tax on Prepayment.
The HSN (Goods) or SAC (Services) codes are captured in Prepayment.
Account the liability of Reverse Charge on Prepayment. GST laws require liability as Reversal entry instead of Net Off entry on Prepayment to standard invoice with Reverse charge taxes.
Have the Repository update on the Reverse Charge taxes of Prepayment as well as the accounting.
Accounting of Reverse Charge taxes to the Period End Processing has a new Concurrent program added.
Flows
Create a Prepayment Invoice having Reverse Charge Taxes attached to it and HSN/SAC code attached
Validate and Pay the Prepayment Invoice
Validate the Standard Invoice
Create a Standard Invoice having Reverse Charge Taxes attached to it and same HSN/SAC code attached as well
Apply the Prepayment to Standard Invoice based on lines having same HSN and SAC codes
Repository will get updated
Run the Period End Process in 'Save' and then in 'Final' modes
Lines are inserted in GL_INTERFACE table for tax liability accounting
HSN/SAC Code
HSN Code is used for Goods. For inventory item (reporting code only for item)
SAC Code is used for Services. For non-inventory item (reporting code for both third party item)
New seeded Reporting Types are introduced to capture the details. These Reporting Types are User configurable.
At transaction level, you can modify the HSN and or SAC code defaulted from Third Party Registration or Item Classification.
Seeded Reporting Types for HSN and SAC codes
SAC Code for Non Inventory Item: GST_SAC_CODE_ITEM
SAC Code for Third Party: GST_SAC_CODE_TP
HSN Code for Item: GST_HSN_CODE
If the Entity is Third party, then attach the Reporting Code value to the third party Registration. If the Entity is Item, then attach the Reporting Code value to Item Classification.
Linking of Reporting Code value to Third Party Registration
Attach the Reporting Code value to the Third party Registrations.
Prepayment
In prepayment, attach the Reverse Charge taxes using Tools > India tax Details.
Organization and Location are mandatory
SAC Code is defaulted from the Third Party Registration. You can modify the value.
SAC Assessed and Reverse Charge option is defaulted from Tax Type setup.
You create a Reverse Charge for a Prepayment you are accounting the tax liability. When you create the AP invoice for which the Tax Point Basis (TPB) is set, you calculate the full value and when the Prepayment is applied. The system checks if the SAC/HSN codes are same in both documents, then it triggers an offset entry for the Reverse Charge that is calculated on PP.
If SAC code is entered, HSN code is disabled. Both SAC and HSN codes are mutually exclusive.
Prepayment can have two lines having multiple HSN and or SAC codes, only the adjustment be by grouping of HSN and or SAC codes. Application is done at the line level by grouping of HSN/SAC codes. Apply those lines of prepayment where HSN/SAC codes are same.
Prepayment VALIDATE, Standard Invoice VALIDATE and Prepayment APPLICATION does not create any accounting. Only period Ending process create accounting and update repository.
Period Ending Process
Data populates in the Repository (table jai_rgm_recovery_lines) once the prepayment is applied to the Standard invoice.
Based on the data populated, the Period Ending Process creates the accounting in GL.
For Standard invoice, a record inserted into the repository table with liability account and for Prepayment also there is a liability account.
Once the Prepayment is applied to Standard Invoice, there will be a negative Reversal entry against liability to adjust the prepayment application.
A new concurrent program, India - Period Ending Process, is added for the period end processing. There are two ways of running the period-end process:
Save - Invoices are prepared for GSTN and view those details and upload the information to the GSTR.
Final - In this mode all the records are locked and the accounting gets created in GL.
Running the Program in Save Mode
The status of the Repository against the transaction is found out by the column, REPORTING_STATUS_FLAG, that is marked as S when the program is run in the Save mode.
Running the Program in Final Mode
The status of the Repository against the transaction is found out by the column, REPORTING_STATUS_FLAG, marked as RF (Ready to File) when the program is run in the Final mode. Once the process is run, you cannot modify the invoice. You can then file the data to GSTN, The Liability Accounting generates. With the Period-End Process in Final mode, the system generates Liability accounting and Adjustment accounting in GL.
Once Period End Process Program is completed
The accounting entry generated in GL_INTERFACE is:
| Event | Account | Debit | Credit |
| Period End Process | Liability | Tax Amount | |
| Suspense | Tax Amount |
Payment on Receipt enables you to automatically create standard, unapproved invoices for payment of goods based on receipt transactions. Invoices are created using a combination of receipt and purchase order information that eliminates duplicate manual data entry. It automatically creates invoices with multiple items and distribution lines, and includes tax. Payment on Receipt is also known as Evaluated Receipt Settlement (ERS).
Flows
Create PO for Supplier and Supplier site that has ERS Invoice setup.
Navigate to Terms > Set Pay on option to Receipt.
Navigate to Tools > India Tax Details. Tax category is defaulted based on defaulting mechanism defined.
Create a receipt > Check the Confirm taxes option.
Receiving Transaction Processor program is run.
Lines are inserted in GL_INTERFACE table for tax accounting (refer query mentioned in Chapter 8 to extract the data)
Run the ADS (Pay On Receipt AutoInvoice) Program.
ERS invoice is imported to Payables.
Validate the ERS invoice and run create accounting.
Create a purchase with Pay on option set to Receipt.
Create a receipt, once the PO is approved.
Receiving Transaction Processor program is run, when the receipt is saved.
Run the ADS (Pay On Receipt Autoinvoice) program, after successful completion of Receiving Transaction Processor program.
Once receiving transaction processor program is completed.
The accounting entry is generated in GL_INTERFACE is
| Event | Account | Debit | Credit |
| Receipt | Receiving Inventory | Tax Amount | |
| Inventory AP Accrual | Tax Amount |
The output of payable Open interface program, the ERS invoice number is created.
Receiving Transaction Processor > ADS (Pay On Receipt AutoInvoice) > Payables Open Interface Import
When we query the invoice number in the invoice workbench, and navigate to Tools > India tax details window, the tax category defaults from the receipt level.
ERS invoice number is imported to payables.
Tax category is defaulted from Receipt. When the confirm taxes option is checked at the receipt level, the fields are freezed at invoice level.
Once invoice is validated and accounted, following accounting entry is generated by navigating to Tools > View Accounting.
For both Recoverable and Non recoverable taxes, the tax lines hit the AP Accrual Expense Account.
For ERS invoices, set the Tax Point Basis to DELIVERY.
You generate E-Way Bill in the common portal maintained by the Government of India. All information required for filing Part A of the EWB-01 is available in the system. Oracle Financials for India uploads only a subset of the information reported from the tax fiscal document such as Tax invoice, Bill of supply, and Delivery Challan.
You file the E-Way Bill at the National Portal based on the tax invoice draft or based on a customized data extract that contains all the required information.
You can store the E-Way Bill reference assign to a supply with reference to the tax fiscal document. You also record the E-Way Bill number and its stats in the Purchase to Pay cycle and also record acceptance of the E-Way Bill by a registered recipient. This helps associate the E-Way Bill number to a tax invoice and supply as well as to the receipt of a supply.
Every registered user who needs to generate E-Way Bill under GST laws should follow these required steps to capture the E-way Bill details in Oracle Financials of India - GST Architecture.
Following Fields appear in the India Tax Details window at the Order Shipment, PO Receipt and AP Invoice level:
E-Way Bill Number
E-Way Bill Date
E-Way Bill Acceptance checkbox
Generate E-Way Bill in the common portal maintained by National Information Center/Goods and Services Tax Network - NIC/GSTN using www.ewaybill.nic.in. Log in to the Portal and follow outlined procedures.
E-way Bill number generates and note the same. Enter the E-Way Bill Number and Date in the respective fields on the India tax Details window.
Check the E-way Bill Acceptance option to record the acceptance of E-Way Bill by a registered recipient. These details are stored in the JAI_TAX_DET_FACTORS table.
GST council has notified that the E-way Bill will be mandatory for inter-state supply of goods with effect from 01-April-2018, and states will implement E-way Bill for intra-state supplies in a phased manner by 01-June-2018.
GST - Delivery Challan
Delivery Challan is a Serial Number generated instead of the tax Invoice number for the following documents:
Return to Vendor transaction.
Intrastate stock transfers between warehouses, that is, ISO/Inter-organization transfer between two inventory organizations sharing the same GST Registration Number
Outside processing transactions.
A new option, Applicable for Delivery Challan, helps configure using Document Sequencing setup.
Delivery Challan details display in the GST document number and GST document date fields of India tax details window for the relevant transactions.