BOE is a legal document in a prescribed format that must be submitted to the Customs Authority by the importer or his authorized agent. BOE contains information of the goods imported to India, value and other relevant details which is required for assessment of Customs duty.
We do not provide the document in the prescribed format and also do not capture all the information required for BOE format. Further, calculation of customs duty is rigid. This document will help the users to understand the product capabilities in regards to BOE requirements.
For imports the relevant taxes applicable are IGST and Basic Customs Duty which will be settled with Statute.
For the BOE cycle to work in the new GST architecture, the below setup needs to be defined:
Regime
Tax types
Tax ratesTax rates
Tax Categories
Define the Specific Functionality
Item Classification
Claim term definition
First and Third party Registration
BOE Agent
After setting up common setups as mentioned above, you must capture specific functionality for Bill of Entry to consider the taxes as custom taxes.
Navigate to the Define Specific Functionality window using (N) Oracle Financials for India > Tax Configuration > Define Specific Functionality
Ensure that the Tax Point Basis is Delivery when defining the tax type. Otherwise, tax type does not show when doing the specific functionality setup for custom tax type.
Note: It is recommended to have separate Regime created for Customs tax.
Define a Bill of Entry agent by navigate to Agent Information India Localization using (N) Oracle Payables > Setup > Others >BOE Agent.
Create BOE Invoice (With Reference)
Below are the steps to be followed to create BOE Invoice from existing Purchase Order as a reference.
Flow Diagram
Create BOE Header Details
Capture PO Reference -- BOE Line details
Verify BOE Taxes
Confirm BOE
Payment of BOE Invoice
Create Receipt from BOE
The BOE Header form used to capture the BOE details and the associated vendor information. It consists of 4 tabs, Import Details, Currency, Shipment and Others.
(N) Oracle Financials for India > Transactions > Enter Bill of Entry
Import Details Tab
You specify information related to BOE type, nature of transaction, Port type are specified. This tab shows details of the BOE amounts with respect to Total BOE amount, Amount applied, written off and any amount remaining.
The DEPB amount option is provided where you enter the amount of DEPB credit they are going to utilize for this import.
The DEPB credit value captured, it is reduced from the total BOE amount at the AP Invoice workbench in the window of negative distributions once the BOE invoice gets generated.
Select the respective Customs Authority Supplier from the list of values. Ensure the supplier is defined with Classification as India Customs Authority.
Select the respective Customs Authority Supplier Site.
Customs authority provides an Exchange Rate that is used for currency conversion when calculating customs duty. This rate is not the normal daily buying or selling exchange rate but a different rate that is provided by Customs Authority.
You can setup the Custom Notified Exchange Rate in system (based on what is provided by Customs Authority) using the base feature of recording Exchange rates or enter the value in the Currency tab of Bill of Entry India Localization window.
You can perform inventory transactions related to projects – such as Issue to Projects, Issue from Projects, and so on. This is achieved by checking the Project option at the time of defining User Inventory Transaction types. These Inventory transactions related to Projects are also considered for appropriate quantity register update as per India Local Taxation functionality. For example, Issue to Project inventory transaction for a raw material item updates the RG 23 Part I register, Issue to Project inventory transaction for a finished good item will update the RG I register.
A withholding tax, also called a retention tax, is a government requirement for the payer of an item of income to withhold or deduct tax from the payment, and pay that tax to the government.
TDS is a withholding tax which is a direct tax administered by Central Board of Direct Taxes (CBDT) under Income Tax Department.
GST, an indirect tax, is administered concurrently by the Federal and State Governments through Central Board of Indirect taxes (CBIC which was formerly known as Central Board of Excise and Customs - CBEC) and respective state commercial tax departments. GST being an indirect tax, will not impact TDS provisions and requirements
Provisions of the current Income tax for TDS and all procedural requirements including classification through sections, threshold computations, taxable events, tax accounting, tax settlement and tax reporting are not impacted with introduction of GST.
Once GST is introduced, you will get a notification from CBDT with procedural guidelines on deriving the taxable basis (whether the TDS need to be calculated on the entire payable amount which includes GST type of taxes or to calculate TDS from the payable amount excluding the GST type of taxes).
With the GST infrastructure you can configure the tax to suit your requirement. The TDS functionalities and solution capabilities remain unchanged with the GST solution. However, the way in which TDS need to be configured had undergone a change where you will have to use the GST infrastructure to configure the TDS type of taxes through regime to rate flow.
Following are the setups you must perform for the Withholding Tax.
Define Tax Authority
Define Supplier with type India Tax Authority using (N) Oracle Payables > Suppliers > Entry. The TDS standard Invoice is generated against this supplier
Define TDS Calendar
Define an accounting period as TDS Financial Year in the standard AP Periods Definition window using (N) Oracle Payables > Setup > Calendar > Accounting > Periods. This period should start from 1-Apr and end on 31-Mar of the following year as the Year type. After defining this TDS period, the same can be assigned to the TDS regime as TDS financial Year.
Regime Registration
Define the respective Tax Regime used using (N) Oracle Financials for India > Tax Configuration > Define Regime. Enter a value for the Regime Name. Choose Regime type as Withholding Tax. Regime Type of Transaction Tax is used for Indirect Taxes (GST Taxes).
Tax types
Define the respective Tax Type using the (N) Oracle Financials for India > Tax Configuration > Define Tax Type. In the Details tab, select Withholding Tax Applicable.
Tax rates
Specify the rate of tax to be calculated on the transaction using (N) Oracle Financials for India > Tax Configuration > Define Tax Rate. Specify if the tax is recoverable or inclusive. Also, enter the Rate Details.
Tax Categories
Define Tax category that is used or defaulted when creating transactions using (N) Oracle Financials for India > Tax Configuration > Define Tax Categories. Define precedence.
Common Configuration
Define Common Configuration using (N) Oracle Financials for India > Tax Configuration > Define Common Configuration. In the Withholdings Tab, enter the tax category to be defaulted when Registration number is not available. Select Create Pre-Validated TDS Invoice and Credit Memo and or Create Pre-Approved TDS Invoice and Credit Memo options, for the TDS invoice to be generated, validated and approved accordingly.
First party Registration
Provide the tan number and Pan number of the Organization in the first party Registration using (N) Oracle Financials for India > Party Registrations > Define First Party Registration. Choose the Regime Type as Withholding Tax. Also select Primary Registration Name. Select the Secondary Registration Name (PAN Number).
Third party Registration
Define third party registration for the Suppliers for which the TDS has to be deducted using (N) Oracle Financials for India > Party Registrations >Define Third Party Registration. Define the Third party registration for the null site first and then for the site level with the operating unit. Provide TAN Number and PAN number at Primary and secondary Registration Numbers. Then, define Third Party Registration at Site Level.
Threshold Setup
Define the threshold setup for the section code, regime type and the vendor type combination using (N) Oracle Financials for India > Withholding Tax Setup > Define Withholding Thresholds. If the vendor has the TDS certificate, then select Exception setup. If the Exception setup has been selected, then Assign Vendors tab is enabled to define the vendor name, certificate number, start and end date.
Tax Deducted at Source on the invoice is defaulted based on the setup during the third party registration setup. The Tax category is defaulted based on the setup done for the operating unit and the threshold setup. You must perform the following steps:
Create a manual invoice with the Item Line.
Enter all of the account information on the distributions.
Save the distributions.
Navigate to the TDS Tax details window using (M) Tools > TDS tax Details.
Check whether the TDS tax category and section code has been defaulted as per the setup.
Check the Overridden option in case the tax category or the section has been overridden or manually applied.
Save.
Validate the Invoice.
Verify whether below concurrent programs has been triggered and completed successfully.
TDS Processing, India - TDS Processing Concurrent.
Import TDS invoice, and validate the invoice (Payables Open Interface Import).
Approval TDS Invoices (India - TDS Approval).
Re-query the Invoice by appending % to the invoice number to verify the standard TDS Invoice against Tax authority and Credit memo against Supplier has been generated.
Create a Prepayment Invoice.
Save Invoice distributions.
Apply TDS taxes using (M) Tools > TDS tax Details.
Click on Override checkbox when the tax has been applied manually.
Validate the Invoice.
Verify that TDS invoice has been generated.
Make payment for the prepayment Invoice.
Query the invoice to which prepayment has to be applied.
Check if the same section code has been applied to the invoice as it is in the prepayment.
Apply Prepayment Invoice to invoice.
Revalidate the Invoice.
Verify if the RTN Invoice has been generated.
Internal Requisition – Internal Sales Order (IR-ISO) or Inter Organization (Inter Org) transfer refers to the business process where in there will be requirement of material from one department/division of an enterprise from another department and division for either using the material in further manufacturing or trading of material. In this business process, the division which dispatches the goods will be called a Source Organization and the one which receives will be called Destination Organization.
An enterprise may have multiple business divisions. There are scenarios where in one division uses the material produced in another division. The usage could be further production of goods or trading of the goods manufactured.
Core Module setups
Following is the check list for core module setups:
Define Inventory Organization in Oracle Inventory. Source and Destination organizations are mandatory setup.
Define Location in Oracle Inventory. Source and Destination organizations are mandatory setup.
Define Organization in Oracle Inventory. Source and Destination organizations are mandatory setup.
Define Receiving in Oracle Inventory. Source Organization is optional but Destination Organization is a mandatory setup.
Define Sub Inventory in Oracle Inventory. When defining Subinventory, enter location. Source and Destination organization are mandatory setup.
Define Item Parameter in Oracle Inventory. Source and destination organizations are mandatory setup.
Define Shipping Parameter in Network Oracle Inventory. Source and destination organizations are mandatory setup.
Define Customer Parameter (Internal) in Oracle Receivable. Source Organization is mandatory but Destination Organization is an optional setup.
Define Shipping Parameter (Raise Business event) in Oracle Order Management. Source Organization is mandatory but Destination Organization is an optional setup.
Define Global Parameter (Raise Business event) in Oracle Order Management. Source Organization is mandatory but Destination Organization is an optional setup.
Note: Refer to respective module User's and Implementation guides detailed setup information.
Following are the common setups required in Oracle Financials for India:
Define Regime. Source and destination organizations are mandatory setup.
Define Tax Type. Source and destination organizations are mandatory setup.
Define Tax Rate. Source and destination organizations are mandatory setup.
Define Tax Category. Source Organization is optional but Destination Organization is a mandatory setup.
Define Tax Rule. Source and destination organizations are mandatory setup.
Define Item Classification. Source and destination organizations are mandatory setup.
Define Document Sequencing. Source and destination organizations are mandatory setup.
Define Claim Term Definition. Source Organization is optional but Destination Organization is a mandatory setup.
Define First Party. Source and destination organization are mandatory setup.
Define Third Party (For Internal Customers). Source Organization is mandatory but Destination Organization is an optional setup.
Refer to Oracle Financials for India Implementation guide for details on these setups.
Note: For Internal Sales Orders and Inter-Org Transfer transaction, set the Tax Point Basis (TPB) as Delivery for the Tax type.
Flow Diagram for Internal Requisition-Internal Sales Order (IR-ISO) Transaction:
Create Internal Requisition
Navigate to Tools > India Tax Details. Review defaulted taxes or Add taxes if defaulting mechanism is not used.
Run “Create Internal Order” Request
Run “Order Import” Request
Open Order Organizer form > Search for Order number based on Order Source = Internal & Order Source Reference = Internal Requisition Number
Query the sales order in Sales Order form
Navigate to Tools > India Tax Details. Review defaulted taxes or Add taxes if tax not defaulted from requisition
Pick Release the sales Order
Ship Confirm the Sales Order
India - Check Delivery OM/INV Interface fires for generating Invoice number based on Document Sequencing setup
Navigate Shipping Transaction form > Delivery Tab > Tools > India Tax Details > Check taxes & Invoice number
Create Receipt in the Destination Organization
Navigate to Tools > India Tax Details. Review defaulted taxes & Confirm
Navigate to Receiving Transaction & Perform Receipt Delivery
Navigate to Receiving Transaction Summary Form > Tools > India Tax Details > Tools > Process Claim > Claim Recoverable Tax if any applied.
Flow Diagram for Inter Organization Transfer (Inter Org) Transaction:
Create Inter Org Transfer
Navigate to Tools > India Tax Details. Review defaulted taxes or Add taxes if defaulting mechanism is not used
Save to complete the transfer
Create Receipt in the Destination Organization
Navigate to Receiving Transaction & Perform Receipt Delivery
Navigate to Receiving Transaction Summary Form > Tools > India Tax Details > Tools > Process Claim > Claim Recoverable Tax if any applied.
Note: In case of Inter Organization transfer user need not to check confirm button the same comes as enabled and grayed out.
For related information, see: Expenditures, Oracle Project Costing User Guide.
As of now Document sequencing is not shown post completion of Inter org shipment. To check that following navigation can be used:
(N) Oracle Inventory
Transactions - Material Transactions Give the Search Criteria to fetch the shipment Click on Intransit Tab Click on Tools India Tax Details.
Further, Product development team is evaluating the feasibility to incorporate the document sequence number (display) feature in the Inter Org form. This is being planned for post Ph-2 releases.
IR-ISO accounting depends on the FOB point selected in the shipping network. There are 2 type of FOB:
Shipment
Receipt
Accounting entry of IR-ISO when FOB is selected as Shipment:
Nature of Tax: Recoverable
| Event | Account - | Sending/Receiving | Amount | Amount |
| Ship Confirm | Intransit Inventory Account | Receiving Org | Debit | |
| Tax Liability Account | Sending Org | Credit | ||
| Intercompany Receivable Account | Sending Org | Debit | ||
| Intercompany Payable Account | Receiving Org | Credit | ||
| Receipt | Tax Interim Recovery Account | Receiving Org | Debit | |
| Intransit Inventory Account | Receiving Org | Credit | ||
| Span Cells | Tax Recovery Account Debit | Receiving Org | Debit | |
| Tax Interim Recovery Account | Receiving Org | Credit |
Nature of Tax: Non Recoverable
| Event | Account - | Sending/Receiving | Amount | Amount |
| Ship Confirm | Intransit Inventory Account | Receiving Org | Debit | |
| Tax Liability Account | Sending Org | Credit | ||
| Intercompany Receivable Account | Sending Org | Debit | ||
| Intercompany Payable Account | Receiving Org | Credit | ||
| Receipt | Inventory Receiving Account | Receiving Org | Debit | |
| Intransit Inventory Account | Receiving Org | Credit | ||
| Span Cells | Purchase Price Variance Account | Receiving Org | Debit | |
| Inventory Receiving Account | Receiving Org | Credit |
Note: These entries are applied to standard costing organization. If the costing method is average, then there will not be any accounting generated by Oracle Financials for India.
Accounting entry of IR-ISO when FOB is selected as Receipt:
Nature of tax: Recoverable
| Event | Account | Sending/Receiving | Amount | Amount |
| Ship .firm |
Intransit Inventory Account | Sending Org | Debit | |
| Tax Liability Account | Sending Org | Credit | ||
| Receipt | Tax Interim Recovery Account | Receiving Org | Debit | |
| Intransit Inventory Account | Sending Org | Credit | ||
| Intercompany Receivable Account | Sending Org | Debit | ||
| Intercompany Payable Account | Receiving Org | Credit | ||
| Claim | Tax Recovery Account Debit | Receiving Org | Debit | |
| Tax Interim Recovery Account | Receiving Org | Credit |
Nature of tax: Non Recoverable
| Event | Account | Sending/Receiving | Amount | Amount |
| Ship .firm |
Intransit Inventory Account | Sending Org | Debit | |
| Tax Liability Account | Sending Org | Credit | ||
| Receipt Intercompany Payable Account |
Inventory Receiving Account | Receiving Org | Debit | |
| Intransit Inventory Account | Sending Org | Credit | ||
| Intercompany Receivable Account | Sending Org | Debit | ||
| Intercompany Payable Account | Receiving Org | Credit | ||
| Claim | Purchase Price Variance Account | Receiving Org | Debit | |
| Inventory Receiving Account | Receiving Org | Credit |
Note: These entries are applied to standard costing organization. If the costing method is average, then there will not be any accounting generated by Oracle Financials for India.
Generate draft revenue wherever required. For more information, see: Processing Adjustments, Oracle Project Costing User Guide.
Generate draft invoice using the Oracle Projects Billing concurrent program:
PRC: Generate Draft Invoices for Single Project, or
PRC: Generate Draft Invoices for Multiple Projects
This process calculates and default India taxes on the India Draft Invoice window. The tax defaulting takes place based on the setup created. See Setting Up Projects Billing Tax Defaults and Preferences, for further information.
Invoice - India window can be viewed from a separate menu option or from View > Zoom on the base Projects draft invoice screen. Login with India Local Projects Billing responsibility and navigate to Oracle Projects > Billing > Invoice Review > Find Invoices > Invoice Summary > Tools > India Invoice. In the Find Invoices screen, query your required invoices.
Based on the selected query criteria the invoices are queried and displayed in the Invoice Review window.
Invoice Review Field Reference
Draft Invoice Area
Displays the invoice number in the Number field.
Displays the invoice Status.
Displays the invoice Creation Date.
Customer Area
Displays the customer Number related to the invoice.
Displays the customer Name related to the invoice.
Displays the invoice Amount.
Displays the invoice Tax Amount.
Displays the invoice Currency.
Indicate if there is any tax defaulted for this invoice in the Taxes field.
Click Lines to display the invoice lines.
Invoice Region
Displays the Invoice number in the Draft Invoice.
Displays the Creation Date for the Invoice.
Displays the Invoice Status for the Invoice.
Displays the invoice Amount for the Invoice.
Displays the Tax Amount for the Invoice.
Displays the Currency for the Invoice.
Displays the Project name for the Invoice.
Displays the Project Number for the Invoice.
Displays the Customer Name for the Invoice.
Displays the Customer Number for the Invoice.
Select the Inventory Organization for which you wish to update the Central Excise and Value Added Tax Registers.
Note: Selecting Inventory Organization and Location is mandatory in this form. Organization and Location selected here will be used for updating the Central Excise and Value Added Tax registers. User will not be able to close this form unless Inventory Organization and Location is selected.
Select the Location related to the Inventory Organization for which you wish to update the Central Excise and Value Added Tax Registers.
Note: Selecting Inventory Organization and Location is mandatory in this form. Organization and Location selected here will be used for updating the Central Excise and Value Added Tax registers. User will not be able to close this form unless Inventory Organization and Location is selected.
Register details Region
Register Details Region will not display any values until the Projects Invoice is released. Draft Invoice generated in projects, this invoice is approved. User can modify any tax details after approval of the invoice as well. All the tax details will be frozen once the Invoice is released. Release of Invoice will also generate Excise and VAT Invoices. This will perform Central Excise and VAT Accounting and update the respective Central Excise Register and VAT repository as well.
Note: Project Invoices do not have any link to items. Hence the quantity registers will not be updated. You should make manual entries for the required quantity register updates.
Displays the Excise Invoice number generated related to this Project Invoice.
Displays the Excise Invoice Date related to this Project Invoice.
Displays the Excise Register updated related to this Project Invoice. This register relates to the utilization of excise.
Displays the VAT Invoice Number generated related to this Project Invoice.
Displays the VAT Invoice Date related to this Project Invoice.
Lines Section
Following field names are available:
Tax Category
Service Type
You can use this option to default the tax category on the invoice lines.
The List of Values contain the values of tax category or service type, based on the Field Name selected.
If you select the Default option, then the default values are inserted for all the lines. If you leave this opyion unchecked, then values are inserted only for those lines where the values are NULL.
Displays the Line Number for the invoice line.
Displays the Description for the invoice line.
Displays the Line Amount for the invoice line.
Displays the line Tax Amount for the invoice line.
Select a Tax Category here. This will override the tax category defaulted for the invoice line.
Select the Service Type to be used for the invoice line.
Click Taxes to view taxes for the line.
Header Section
Displays Projects as default value in the Application option.
Displays PROJECT_DRAFT_INVOICE as the default value in the Document Type option.
Displays Document Number.
Displays Document Line number.
Displays the Line amount.
Displays Tax Line number.
Delete the tax line. You can also add a tax line by clicking on the next line.
Displays Tax Type related to the line.
Displays the Precedences (from 1 to 10) for this tax line.
Displays Tax Rate for this tax line.
Displays UOM for this tax line, only if the tax is UOM based.
Enter the Quantity Rate for this tax line. This displays only if the tax is UOM based.
Displays Tax Amount for this tax line.
Note: You can view the GL Drilldown Accounting lines by clicking the Show Transactions button on the Tools menu in Invoice Review India Localization form.
The Invoice - India window with tax local details can also be viewed from the Tools special menu option on the Oracle Project Billing Invoice Review window.
Approve and release the invoice so that the invoice can be imported into Oracle Receivables.
Note: Once the invoice is released, none of the tax information can be modified.
Run the PRC: Interface Invoices to Receivables process to interface the invoices to Oracle Receivables and run AutoInvoice program to import the invoice into Oracle Receivables.
You must run the India - Import Projects Taxes to Receivables program to import India Local taxes to Oracle Receivables. You can view the India Local taxes in Transactions Localized form after running the program.
Service Tax repository updates after performing these steps:
Apply receipt to the projects invoice with service taxes in Receivables (after running the India Import Project Taxes to Receivables.)
Run the India Service tax processing concurrent program.
Run the tie back to receivables process of Oracle Projects to complete the billing cycle
For Invoices with “Accepted in Receivables Status, write off or cancellation can be done. This generates a new draft invoice with negative amounts, which has negative India Local taxes. A credit memo is generated in Receivables for such write-offs and cancellations. Taxes are inherited from the parent invoice and you must not make any modifications to these taxes. Any such modification performed will create inconsistencies in Original Invoice taxes and Credit Memo taxes. All the processes described above are applicable for the negative draft invoice as well.
Foreign Currency Invoices
For foreign currency invoices in unapproved status, changes may be made to the exchange rate or currency. India taxes will be recalculated when such changes are made.