1. Using Fiscal Document Capture
  2. Task Flow for Purchase of Services

Task Flow for Purchase of Services

Purchase Order Line types define the commodity types in the PO such as Goods and Services.

Ordering goods requires quantity and price on the PO, while services require only amount on the PO.

You can capture a fiscal document for purchase of services for the:

  • goods provided by a supplier
  • amount-based purchases

Task Flow for Purchase of Services for Goods Provided By A Supplier

The task flow for capturing a fiscal document relating to services provided by a supplier differs from the goods provided by a supplier as follows:

  • In Brazil, the fiscal document formats for the sale or purchase of a service differ substantially from the format used for sale or purchase of goods and these formats are defined by each municipality; however, the fiscal information displayed in the fiscal document is generally the same.

  • A fiscal document service line matches a PO service line and no receiving is expected from this line. This service line information is shared with the payables application.

  • A service is intangible and does not involve physical movement of goods.

The task flow for services includes the following:

  • Prevalidate fiscal document attributes and amounts

  • Verify service completion

  • Validate the fiscal document

Task Flow for Purchases with Matching Basis as Amount

Process the amount-based purchases that are accrued either on receipt or at the period end.

For general business services ordered for a fixed amount and fixed price:
  • the Service line type is used.
  • the Purchase Basis for this line type is Service and the Matching Basis is Amount.
  • for fixed price services, the PO line must have the line type, category, item description, and total amount of the service. However, item is not required.
  • these PO line types are usually received from procurement. However, for Brazil localization, receipts and invoices for the fixed price services POs matched to the fiscal document are created from Oracle Fiscal Document Capture.
  • Procure and pay for amount-based purchases using fiscal document.

Prevalidate Fiscal Document Attributes and Amounts

Prior to the verification of a completed service for both quantity and amount-based purchases, you can prevalidate an electronic fiscal document as soon as it is received. This prevalidation checks all the information on the fiscal document except for the item quantities.

For purchase of service:
  • if the buying organization has not verified the completion of a service, then the prevalidation cannot compare the fiscal document details against the service.
  • Once the service verification is complete, and if the completed quantities/ amount of the service do not differ from the fiscal document item quantities/amount, then no further validation is required and the fiscal document is approved and the service is accepted as received. If there are discrepancies between the fiscal document and verified service quantities/amount then corrective actions are required.

A set of validations are done to ensure that the information shown in the fiscal document is accurate. The loaded fiscal document Information is compared against the stored information in the Oracle Cloud Fusion Applications. This validation includes the following:

  • General attributes: Parties (supplier and customer) and their locations, PO number, and so on

  • Fiscal attributes: Tax codes, country of origin, intended usage, and so on

  • Purchase: PO total amounts and item or description details (including quantity, price, and amount)

  • Exclusive taxes: Taxes that are listed in the fiscal document and not included in the price of the service items.

Validations are performed to ensure that services are received at a value that is inclusive of all the direct costs and applicable taxes associated with the service.

Once the validation of general attributes and fiscal attributes is complete, the taxes in the fiscal document are validated.

Taxes are generally calculated and applied at the line level but they may be reported at either the document level or the line level in the fiscal document.

To validate tax reported on the fiscal document, the tax application determines the types and amounts of taxes that are expected to be reported as payable in the supplier's fiscal document. The calculations against the captured fiscal document's tax amounts are compared and any errors or tax differences are displayed.

Once the prevalidation is complete, a conditional approval can be provided for the fiscal documents that include a service that is quantity based or fixed price based.

For information on determination and calculation of taxes, see the Oracle Fusion Cloud Financials documentation.