Internal Transfer of Fiscal Documents

You can capture internal transfer information in fiscal documents. You can do the following for an internal transfer of goods:

• Capture processes and validate internal transfer fiscal documents.

• Get automatic transfer order receipts.

• Report tax exemption for interorganization in transit transfers.

• Calculate and report taxes on transfers within the profit center business units.

• Do costing and accounting of internal transfers.

The process starts in the source organization with creation of a transfer order in the Inventory work area, followed by a shipment in the Shipping work area. As part of the shipment confirmation, an outbound fiscal document gets generated in the XML file format and this file is typically shared with the partner organization for converting into a structured XML format file approved by the fiscal authority. The structured XML is sent to the destination organization, which is transformed by the Oracle Fusion Cloud Collaboration Messaging Framework service, and captured in the fiscal document capture application.

Alternatively, you can enter the fiscal document information directly in the Manage Fiscal Documents page.

For the inbound fiscal document, on successful validation of the business transaction, a receipt is automatically created in the Receiving work area and receipt value of the goods is used for costing and accounting in the cost management application.

The estimated cost at the time of shipment is used as the price on the outbound fiscal document for the shipping organization.

The tax details are included depending on the tax setup for internal transfers in the tax application.

If you incur taxes on an internal material transfer receipt, and they're nonrecoverable, exclude them from the item cost.

To exclude nonrecoverable taxes, do the following.

1. In the Setup and Maintenance work area, go to the following:

   • Offering: Manufacturing and Supply Chain Materials Management

   • Functional Area: Cost Accounting

   • Task: Manage Cost Component Mappings

2. On the Manage Cost Component Mappings page, for the Nonrecoverable Transfer Tax cost component, deselect the Include in Inventory option.

In cost accounting, taxes on shipment are shown as cost elements, auto generated at the granular level of Tax Code on the shipping transaction. Taxes are added to the intraorganization receivables amount in the shipping organization.

If there are returns, create a separate Internal Material Transfers shipment document. For example, if original shipment is from Organization A to Organization B, and if Organization B wants to return the goods, you must create a fresh internal material transfer from Organization B to Organization A, and use appropriate CFOP code for returns on the fiscal document.

Note: Do not create return transfer order for Internal Material Transfer returns.

Let's consider a scenario where the shipping cost is 1000 Brazil Real, and three taxes are incurred on the internal transfer:

• Recoverable Tax 1 (BR_IPI): 50.00

• Recoverable Tax 2 (BR_PIS): 75.00

• Nonrecoverable Tax 3 (BR_COFINS): 100.00

The following table lists events and the corresponding cost and receipt accounting entries:

Organization	Event	Cost Source	Amount	Accounting Line Type	Cost Elements	SLA	SLA Account
Shipping Organization	Transfer Order Shipment	Inventory Cost	1000	Trade In transit	Material	Cost Accounting	In Transit Contra account in SLA
Shipping Organization	Transfer Order Shipment	Inventory Cost	-1000	Inventory	Material	Cost Accounting	Inventory account in Costing SLA
Shipping Organization	Transfer Order Shipment	Shipment Taxes	50	Trade In transit	BR_IPI	Cost Accounting	In Transit Contra account in SLA
Shipping Organization	Transfer Order Shipment	Shipment Taxes	-50	Tax Liability	BR_IPI	Cost Accounting	Tax Account Combination
Shipping Organization	Transfer Order Shipment	Shipment Taxes	75	Trade In transit	BR_PIS	Cost Accounting	In Transit Contra account in SLA
Shipping Organization	Transfer Order Shipment	Shipment Taxes	-75	Tax Liability	BR_PIS	Cost Accounting	Tax Account Combination
Shipping Organization	Transfer Order Shipment	Shipment Taxes	100	Trade In transit	BR_COFINS	Cost Accounting	In Transit Contra account in SLA
Shipping Organization	Transfer Order Shipment	Shipment Taxes	-100	Tax Liability	BR_COFINS	Cost Accounting	Tax Account Combination
Shipping Organization	Trade In Transit Issue	Cost from Transfer Order Shipment Transaction	1000	Interorganization Receivable	Material	Cost Accounting	Interorganization Receivable account
Shipping Organization	Trade In Transit Issue	Cost from Transfer Order Shipment Transaction	-1000	Trade In transit	Material	Cost Accounting	In Transit Contra account in SLA
Shipping Organization	Trade In Transit Issue	Cost from Transfer Order Shipment Transaction	50	Interorganization Receivable	BR_IPI	Cost Accounting	Interorganization Receivable account
Shipping Organization	Trade In Transit Issue	Cost from Transfer Order Shipment Transaction	-50	Trade In transit	BR_IPI	Cost Accounting	In Transit Contra account in SLA
Shipping Organization	Trade In Transit Issue	Cost from Transfer Order Shipment Transaction	75	Interorganization Receivable	BR_PIS	Cost Accounting	Interorganization Receivable account
Shipping Organization	Trade In Transit Issue	Cost from Transfer Order Shipment Transaction	-75	Trade In transit	BR_PIS	Cost Accounting	In Transit Contra account in SLA
Shipping Organization	Trade In Transit Issue	Cost from Transfer Order Shipment Transaction	100	Interorganization Receivable	BR_COFINS	Cost Accounting	Interorganization Receivable account
Shipping Organization	Trade In Transit Issue	Cost from Transfer Order Shipment Transaction	-100	Trade In transit	BR_COFINS	Cost Accounting	In Transit Contra account in SLA
Receiving Organization	Trade Receipt Accrual	Material Cost from Trade in Transit	1000	Trade Clearing	BR_COFINS	Receipt Accounting	A clearing account used for balancing or a contra account
Receiving Organization	Trade Receipt Accrual	Material Cost from Trade in Transit	-1000	Interorganization Payable	BR_COFINS	Receipt Accounting	Interorganization Payable
Receiving Organization	Trade Receipt Accrual	Shipment Tax from Trade in Transit	50	Trade Clearing	BR_COFINS	Receipt Accounting	A clearing account used for balancing or a contra account
Receiving Organization	Trade Receipt Accrual	Shipment Tax from Trade in Transit	-50	Interorganization Payable	BR_COFINS	Receipt Accounting	Interorganization Payable
Receiving Organization	Trade Receipt Accrual	Shipment Tax from Trade in Transit	75	Trade Clearing	BR_COFINS	Receipt Accounting	A clearing account used for balancing or a contra account
Receiving Organization	Trade Receipt Accrual	Shipment Tax from Trade in Transit	-75	Interorganization Payable	BR_COFINS	Receipt Accounting	Interorganization Payable
Receiving Organization	Trade Receipt Accrual	Shipment Tax from Trade in Transit	100	Trade Clearing	BR_COFINS	Receipt Accounting	A clearing account used for balancing or a contra account
Receiving Organization	Trade Receipt Accrual	Shipment Tax from Trade in Transit	-100	Interorganization Payable	BR_COFINS	Receipt Accounting	Interorganization Payable
Receiving Organization	Transfer Order Receipt	Item Cost	1000	Receiving Inspection	BR_COFINS	Receipt Accounting	Receiving Inspection contra account defined in SLA, which is only a clearing account
Receiving Organization	Transfer Order Receipt	Item Cost	-1000	Trade In Transit	BR_COFINS	Receipt Accounting	In Transit Contra account in SLA
Receiving Organization	Transfer Order Receipt	Transaction Taxes: BR_IPI	50	Receiving Inspection	BR_COFINS	Receipt Accounting	Receiving Inspection contra account defined in SLA, which is only a clearing account
Receiving Organization	Transfer Order Receipt	Transaction Taxes: BR_IPI	-50	Trade In Transit	BR_COFINS	Receipt Accounting	In Transit Contra account in SLA
Receiving Organization	Transfer Order Receipt	Transaction Taxes: BR_PIS	75	Tax Recoverable (100% R)	BR_COFINS	Receipt Accounting	Tax Account Combination
Receiving Organization	Transfer Order Receipt	Transaction Taxes: BR_PIS	-75	Trade In Transit	BR_COFINS	Receipt Accounting	In Transit Contra account in SLA
Receiving Organization	Transfer Order Receipt	Transaction Taxes: BR_COFINS	60	Receiving Inspection	BR_COFINS	Receipt Accounting	Receiving Inspection contra account defined in SLA, which is only a clearing account
Receiving Organization	Transfer Order Receipt	Transaction Taxes: BR_COFINS	-60	Trade In Transit	BR_COFINS	Receipt Accounting	In Transit Contra account in SLA
Receiving Organization	Transfer Order Receipt	Transaction Taxes: BR_COFINS	40	Tax Recoverable (40% R)	BR_COFINS	Receipt Accounting	Tax Account Combination
Receiving Organization	Transfer Order Receipt	Transaction Taxes: BR_COFINS	-40	Trade In Transit	BR_COFINS	Receipt Accounting	In Transit Contra account in SLA
Receiving Organization	Trade In Transit Receipt	Cost from Trade in Transit	1000	Trade In Transit	Material	Cost Accounting	In Transit Contra account in SLA
Receiving Organization	Trade In Transit Receipt	Cost from Trade in Transit	-1000	Trade Clearing	Material	Cost Accounting	Wash Account Contra
Receiving Organization	Trade In Transit Receipt	Shipment Tax from Trade in Transit	50	Trade In Transit	BR_IPI	Cost Accounting	In Transit Contra account in SLA
Receiving Organization	Trade In Transit Receipt	Shipment Tax from Trade in Transit	-50	Trade Clearing	BR_IPI	Cost Accounting	Wash Account Contra
Receiving Organization	Trade In Transit Receipt	Shipment Tax from Trade in Transit	75	Trade In Transit	BR_PIS	Cost Accounting	In Transit Contra account in SLA
Receiving Organization	Trade In Transit Receipt	Shipment Tax from Trade in Transit	-75	Trade Clearing	BR_PIS	Cost Accounting	Wash Account Contra
Receiving Organization	Trade In Transit Receipt	Shipment Tax from Trade in Transit	100	Trade In Transit	BR_COFINS	Cost Accounting	In Transit Contra account in SLA
Receiving Organization	Trade In Transit Receipt	Shipment Tax from Trade in Transit	-100	Trade Clearing	BR_COFINS	Cost Accounting	Wash Account Contra
Receiving Organization	Transfer Order Receipt Delivery	Cost from Transfer Order Receipt	1000	Inventory	Material	Cost Accounting	Inventory account from SLA
Receiving Organization	Transfer Order Receipt Delivery	Cost from Transfer Order Receipt	-1000	Receiving Inspection	Material	Cost Accounting	Receiving Inspection contra account defined in SLA, which is only a clearing account
Receiving Organization	Transfer Order Receipt Delivery	Cost from Transfer Order Receipt	110	Expense	Nonrecoverable Transfer Tax	Cost Accounting	Expense account from SLA
Receiving Organization	Transfer Order Receipt Delivery	Cost from Transfer Order Receipt	-110	Receiving Inspection	Nonrecoverable Transfer Tax	Cost Accounting	Receiving Inspection contra account defined in SLA, which is only a clearing account
Receiving Organization	Transfer Order Delivery to Expense (If the internal transfer of items is for an expense destination)	Cost from Transfer Order Receipt	1000	Expense	Material	Receipt Accounting	Expense account from Transfer Order Distributor
Receiving Organization	Transfer Order Delivery to Expense (If the internal transfer of items is for an expense destination)	Cost from Transfer Order Receipt	-1000	Receiving Inspection	Material	Receipt Accounting	Receiving Inspection contra account defined in SLA, which is only a clearing account
Receiving Organization	Transfer Order Delivery to Expense (If the internal transfer of items is for an expense destination)	Cost from Transfer Order Receipt	110	Expense	Nonrecoverable Transfer Tax	Receipt Accounting	Expense account from SLA
Receiving Organization	Transfer Order Delivery to Expense (If the internal transfer of items is for an expense destination)	Cost from Transfer Order Receipt	-110	Receiving Inspection	Nonrecoverable Transfer Tax	Receipt Accounting	Receiving Inspection contra account defined in SLA, which is only a clearing account