Creating Interunit Transfers in India with Duties and Taxes

When inventory stock is transferred between two PeopleSoft Inventory business units in different tax locations within India, then excise duty must be calculated and posted by each business unit. The tax location is defined and attached to the PeopleSoft Inventory business unit using the BU Tax Applicability (business unit tax applicability) page. If both business units are linked to the same tax location, then no excise duty is recorded.

To send an interunit transfer with excise duty:

1. In the source PeopleSoft Inventory business unit, create a stock order for the interunit transfer by using the Create/Update Stock Request component or the Express Issue component.

   No excise duty is calculated on the material stock request.

2. If you used the Create/Update Stock Request component, reserve, pick, and create a shipping ID, then run the Deplete On Hand Qty (Depletion) process.

3. Create the shipping excise invoice for the stock request using the Shipping Excise Invoice page. The excise duty payable is determined and calculated on this invoice.

4. Run the Register Update process.

   This process performs these actions:

   1. Updates the quantity shipped in the Daily Stock Account register for finished goods.

      This is completed by the Excise Quantity Register Update subprocess.

   2. Allocates the excise duty amount due to the CENVAT - Raw Material, CENVAT - Capital Goods, and PLA registers.

      This is completed by the CENVAT Utilization subprocess. The Online CENVAT Utilization page can be used to manually allocate excise amounts for a small number of shipping excise invoices. If you decide to use the Online CENVAT Utilization page instead of the CENVAT Utilization subprocess, you must still run the Register Update process for the Excise Quantity Register Update subprocess and then again for the Excise Invoice Posting subprocess.

   3. Creates accounting entries to record the excise duty amounts payable.

      The Excise Invoice Posting subprocess records the excise tax for each shipment by debiting the CENVAT expense account and crediting the appropriate CENVAT accounts. The accounting entries allocate amounts to the CENVAT accounts based on the amount allocation of the CENVAT Utilization subprocess.

To receive an interunit transfer with excise duty:

1. In the destination PeopleSoft Inventory business unit, use the InterUnit and RMA Receiving component to receive the items into the inventory staging interface table (STAGED_INF_INV).

   Run the Load Staged Items and Complete Putaway processes.

2. Create the supplier excise invoice for the receipt.

   The category of IUT receipt is used when creating the supplier excise invoice. This category limits the selection criteria to interunit receipts. Once a receipt is selected, the system retrieves the receipt quantity from the interunit receipt and identifies the shipping ID (from the source business unit) by the interunit receipt. The excise tax amounts and details are retrieved from the shipping excise invoice related to the shipping ID and placed on the supplier excise invoice. This ensures that the excise duty recorded during shipment from the source business unit is the same as the excise duty recorded when the shipment is received in the destination business unit. The excise duty details cannot be manually changed. If the quantity shipped is more than the quantity received, then the excise duty amounts are proportionately applied to the supplier excise invoice. When the supplier excise invoice is saved, it is assigned a serial number based on the number series group for IVEI interunit receipts. No values can be changed on the supplier excise invoice if the status is Ready.

3. Run the Register Update process.

   The process performs these actions:

   1. Updates the quantity received in the Raw Material or Capital Goods Quantity registers depending on the tax item type.

      This is completed by the Excise Quantity Register Update subprocess.

   2. Allocates the CENVAT credit amount to the CENVAT Raw Material or CENVAT Capital Goods registers, depending on the tax item type.

      This is completed by the Value Register Update subprocess.

   3. Creates accounting entries to record the CENVAT amounts.

      The Excise Invoice Posting subprocess records the excise duty for each receipt by debiting the appropriate CENVAT account (for raw materials and capital goods) and crediting the CENVAT Clearing account.