IL Setup Inventory

8/13/2019 IL Setup Inventory

1/96

Oracle India Localization

Oracle India Localization Users Reference Manual 1

Oracle India Localization Setup

Users Reference Manual

Release 11i

July 2006


2/96



Oracle India Localization User Reference ManualRelease 11iOracle Corporation

Copyright Notice

Copyright (c) 2006, Oracle Corporation. All rights reserved.

Trademark Notice

Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its

affiliates. Other names may be trademarks of their respective owners.Primary Author :Shekhar Jadhav , Narasimha Pai, Srinivas Gadde, Pavan Raparla.

Contributors: R. Sivaramakrishnan, Anand KrishnanThis User Reference Manual (URM) in any form, software or printed matter, contains proprietary

information of Oracle Corporation; it is provided under an Oracle Corporation agreement containing

restrictions on use and disclosure and is also protected by copyright, patent, and other intellectual property law.

Restrictions applicable to this URM include, but are not limited to:

a) exercising either the same degree of care to safeguard the confidentiality of this URM as you exercise to

safeguard the confidentiality of your own most important Confidential Information or a reasonable degree of

care, whichever is greater;

b) maintaining agreements with your employees and agents that protect the Confidential Information of third

parties such as Oracle Corporation and instructing such employees and agents of these requirements for this

URM;

c) restricting disclosure of this URM to those of your employees who have a "need to know" consistent with

the purposes for which this URM was disclosed to you;d) maintaining this URM at all times on your premises;

e) not removing or destroying any proprietary or confidential legends or markings placed upon this URM in

whatever form, software or printed matter; and

f) not reproducing or transmitting this URM in any form or by any means, electronic or mechanical, for any

purpose, without the express written permission of Oracle Corporation.

You should not use this URM in any form, software or printed matter, to create software that performs the

same or similar functions as any Oracle Corporation products. The information in this URM is subject to

change without notice. If you find any problems in the URM in any form, software or printed matter, please

report them to us in writing. Oracle Corporation does not warrant that this URM is error-free. This URM is

provided to customer "as-is" with no warranty of any kind. This URM does not constitute Documentation as

that term is defined in Oracles agreements. Reverse engineering of the Programs (software and

documentation) associated with this URM are prohibited. The Programs associated with this URM are not

intended for use in any nuclear, aviation, mass transit, medical, or other inherently dangerous applications. It

shall be licensees responsibility to take all appropriate fail-safe, back-up, redundancy and other measures toensure the safe use of such applications if the Programs are used for such purposes, and Oracle disclaims

liability for any damages caused by such use of the Programs.

Restricted Rights Legend

This URM and the Programs associated with this URM delivered subject to the DOD FAR Supplement are

commercial computer software and use, duplication and disclosure of the URM and the Programs associated

with this URM shall be subject to the licensing restrictions set forth in the applicable Oracle license agreement.

Otherwise, this URM and the Programs associated with this URM delivered subject to the Federal Acquisition

Regulations are restricted computer software and use, duplication and disclosure of the URM and the

Programs associated with this URM shall be subject to the restrictions in FAR 52.227-14, Rights in Data --

General, including Alternate III (June1987).

Oracle Corporation, 500 Oracle Parkway, Redwood City, CA 94065.

Oracle is a registered trademark. AIM Advantage, Big Business. Small Business. All Business., CDM

Advantage, .conference, ConText, Des40, Easy*Query, Easy*SQL, Education Objects, EMM

Advantage, Enabling the Information Age, ExpertDetectSM, Express, FastForwardSM, GEMMS, Gist

, Hyper*SQL, instantOracle, "Internet Business Intelligence - Insight for Everyone",iSQL*Plus,

JInitiator, NLS*Workbench, Object Marketplace, ODP Pulse, ODP Techwire, OLA,On Oracle

, Oracle, Oracle Book, Oracle Bookbatch, Oracle BookBuilder, OracleBRONZE,Oracle Business

OnLine, OracleDevConnectSM, Oracle Discoverer, Oracle Expert, Oracle

Financials,OracleGOLDSM, OracleIncidentSM, OracleJSP, OracleLifeCycleSM, Oracle Media

Objects,OracleMERCURYSM, OracleMetaLinkSM, OraclemetalsSM, OracleMobile, Oracle

Oracle Proprietary, Confidential Information - Use Restricted by Contract 3

Names,Oracle NetSolutions, Oracle One, Oracle Open Gateways, Oracle OpenWorld,


3/96



OraclePLATINUMSM,Oracle Power Objects, Oracle Press, Oracle Procedural Gateway, Oracle

Quality,Oracle Secure Network Services, OracleSILVERSM, Oracle SQL/Services, Oracle

SQL*TutorSM,OracleSTERLINGSM, Oracle Store, Oracle Transparent Gateway, OracleWare, Oracle8i

,Oracle9i, PC Express, Personal Express, PJM Advantage, PL/SQL, Pro*Ada, Pro*C

,Pro*C/C++, Pro*COBOL, Pro*FORTRAN, Pro*Pascal, Pro*PL/1, Pro*REXX,Profit,

ProREXX, Report Card, Secure Access 2.0, Secure Network Services,Security Without Compromise

, SellingPoint, SQL*Plus, Tutor are trademarks or registered trademarks of Oracle Corporation. Other

names may be trademarks of their respective owners. The absence of a product or service name, slogan, or

logo from this list does not constitute a waiver of Oracles trademark or other intellectual

property rights concerning that name, slogan, or logo.


4/96



Send Us Your Comments ................................................................................................................ 5

Preface ............................................................................................................................................ 6About this Localization Manual.................................................................................................... 7

Audience for this Manual .............................................................................................................8When you may need to use this Manual ..................................................................................... 9How the Manual is Organized ...................................................................................................10Conventions used in this Manual............................................................................................... 11Associated Documents.............................................................................................................. 12

India Localization - Setup............................................................................................................ 13Oracle Financials Base Implementation.................................................................................... 14Getting Started........................................................................................................................... 15System Administrator Setup ...................................................................................................... 16Set of Books Setup....................................................................................................................17General Ledger or Government General Ledger Setup............................................................ 18Accounts Receivables Setup..................................................................................................... 19Accounts Receivables Setup Steps ..........................................................................................20

Accounts Payables Setup.......................................................................................................... 22Inventory Setup.......................................................................................................................... 23Overview of Setting Up India Localization.................................................................................25

Setup Flowchart______________________________________________________________ 26Setup Checklist ______________________________________________________________ 27Setup Steps _________________________________________________________________ 28

India Local Inventory ................................................................................................................... 34Miscellaneous Transactions Overview ...................................................................................... 35Inventory & WIP Transactions Overview................................................................................... 36Setting Up Organization Information in India Localization -Inventory ....................................... 37

Defining Organization Additional Information _______________________________________ 37Defining Trading Registration Details _____________________________________________ 42Defining Accounting Information for Organization____________________________________ 43

Defining Organization Preferences _______________________________________________ 48Defining Tax Calendar_________________________________________________________ 50Defining Excise Invoice Generation_______________________________________________ 52Defining Sub Inventory Locations ________________________________________________ 56Defining Item Information_______________________________________________________ 58

Setting Up Tax Information........................................................................................................62Defining Tax Names/Codes_____________________________________________________ 62Defining Tax Categories _______________________________________________________ 69Defining Item Category List _____________________________________________________ 72Defining Manual BOM _________________________________________________________ 74

Managing India Localization - Inventory.................................................................................... 76Transactions ________________________________________________________________ 76

RG-I Register Entry ...................................................................................................................77

RG23 Register Entry ................................................................................................................. 80Apply Time Extension................................................................................................................ 84Master Organization RG Consolidation ..................................................................................... 87

Master Org RG Entries Request Set ______________________________________________ 88View Register Balance .............................................................................................................. 89View Item Definition...................................................................................................................90Reports ......................................................................................................................................92

India-Tax List Report __________________________________________________________ 92India - Excise Duty Claim for RMA Report _________________________________________ 95


5/96



Send Us Your Comments

Oracle India Localization User Reference Manual, Release 11i

Oracle Corporation welcomes your comments and suggestions on the quality and usefulness of thispublication. Your input is an important part of the information used for revision.

Did you find any errors? Is the information clearly presented? Do you need more information? If so, where? Are the examples correct? Do you need more examples?

If you find any errors or have any other suggestions for improvement, please indicate the chapter, section,

and page number (if available). You can send comments to us in the following ways:

Electronic mail message to [email protected]: Attn: +91 (40) 23111711Oracle India LocalizationOracle Software Pvt Limited

5th

Floor, North Wing,Cyber Gateway, HI-TEC CityMadhapur, Hyderabad - 500081India

If you would like a reply, please give your name, address, and telephone number below.

If you have problems with the software, please contact your local Oracle Support Services.


6/96



Preface

The Oracle India Localization Users Reference Manual provides information on how to use Oracle India

Localization.

The following sections are included in this preface:

About this Localization manual Audience for this manual When you may need to use this manual How the manual is organized Conventions used in this manual Associated Documents About Oracle Feedback


7/96



About this Localization Manual

The Oracle Applications-R11-iIndia Localization User Reference Manual includes information you need

to use India Localization effectively. It is organized for easy access to detailed information about each of

the following:

Overview and Refernce information on India Localization India Localization forms India Localization functions and features Process flow Localization Accounting entires India Localization Reports

This manual is to be referred in conjunction with Oracle Applications -R11-iReference Manuals of the

respective modules.

India Localization of the Oracle Applications for Release 11-iaddresses the needs of Indian Industry

relating to Excise Duty, Sales Tax, Income Tax, Tax Deducted at Source, Trading Activity , RaisingSupplementary Invoices, Block of Assets as per Indian Income Tax Act, Service Module, Claim duty draw

back and Reports.

The general requirements have been incorporated in the scope of this localization, however, industry or

product specific issues are not addressed. Oracle Purchasing, Oracle Payables, Oracle Inventory, Oracle

Order Management, Oracle Receivables, Oracle Fixed Assets, Oracle Service are the modules integrated

with this release of India Localization.

There will be a new responsibility created for each of associated Standard Application Responsibility

Oracle Inventory -> India Local Inventory

Oracle Purchasing -> India Local Purchasing

Oracle Payables -> India Local PayablesOracle Order Management -> India Local Order Management

Oracle Receivables -> India Local Receivables

Oracle Fixed Assets -> India Local Fixed Assets

Localized responsibility have additional menus created covering all the functions of Standard Applications

and additional functions introduced in Localization. User need to login to Localization Responsibility to get

the benefit of Localization functionality wherever applicable. The menu call in Localization responsibility

hits Localization functions with a facility to call/return the control back to standard functionality.


8/96



Audience for this Manual

This manual is a complete source of information about India Localization and designed to provide useful

guidance and assistance to:

Consultants implementing India Localized version of Oracle Applications Key user team of Oracle Applications Accountants Accounting Mangers Auditors Chief Financial Officers Controllers Data Entry Clerks Financial Analysts Line Managers MIS Professionals

The Oracle Applications India Localization manual assumes you have a basic understanding of

Localization requirements in India. It also assumes you have a basic familiarity with Oracle Financial

Applications. If you have never used Oracle Applications, we suggest you to attend one or some of the

Oracle Financials training classes available through Oracle Education Services.


9/96



When you may need to use this Manual

You can use this manual as a complement to the online help feature. Online help gives you instant access to

detailed explanation of each form and respective fields on that form.

The manual also provides valuable additional information on features provided under the India Localization

of Oracle Applications 11.5.10, such as examples of reports and listings etc.


10/96



How the Manual is Organized

This manual is organized according to the menu structure and includes the following chapters.

Chapter 1 India Localization Setup Chapter 2 India Local Inventory Chapter 3 India Local Purchasing Chapter 4 India Local Payables Chapter 5 India Local Fixed Assets Chapter 6 India Local Order Management Chapter 7 India Local Receivables Chapter 8 India Trading Functionality Chapter 9 Accounting Entries Chapter 10 Process Flow Chapter 11 Descriptive Flexfields used


11/96



Conventions used in this Manual

This manual uses the following conventions to make it easy to read and understand:

Oracle Applications form descriptions include a detailed explanation of each important field on a form.We always begin a field description with a heading, which also lists field characters such as Required or

Optional. We also tell you which Oracle Applications features, like Quick fields, you can use when your

cursor is in that field.

We display all field headings as illustrated below:

Field Description Type Action Description

Start Date (Required) PICK EDIT HELP The date from which you need to start an activity.

In the above example, the field is Start, the field characteristic is Required, the available features arePICK(Quick Pick) and HELP and the decryption is date from which you need to start an activity.

Field Description

Oracle Applications form descriptions give you the key characteristics of each field, to give you a quick

overview of the way you use a field. We use any or all of the following phrases to describe a fields key

characteristics.

Required:Valid value for this field need to be entered before you navigate to thenext filed. Other words Mandatory field for which the valid data must be entered.

Optional :Optional fields, data can or can not be entered by the user dependingupon his requirements.

Conditionally: Under somecircumstances, you need to enter a valid data before you

Navigate to the next field.

Display only:Oracle Application uses this field to display information and you cannotChange information in this field. When a display only field is not wide enough to show its entire contents,

you can move your cursor into that field to see its entire contents by scrolling it or pressing \ Field Edit.

Default:Oracle Applications automatically enters a default or likely value in thisField. Oracle Applications uses this value unless you override it by entering another valid field value.

Conditionally Default:Under some circumstances Oracle Applications automatically enters a defaultvalue or likely value in this field. Oracle Applications uses this value unless you override it by entering

another valid field value.

Quick Pick Source:The values you enter into this field will appear on QuickPick lists in

Other Oracle Applications forms for the module you are using.


12/96



Associated Documents

Oracle Inventory Reference Manual- Release 11-i Oracle Purchasing Reference Manual - Release 11-i

Oracle Payables Reference Manual- Release11-i

Oracle Order ManagementReference Manual- Release 11-i Oracle Receivables Reference Manual- Release 11-i Oracle Fixed Assets Reference Manual- Release 11-i Oracle Service Module Reference Manual- Release 11-i

All Oracle Applications forms share a number of basic features, such as QuickPick and Help, which helps

you, complete business tasks more easily. Because these features are context-sensitive, your ability to use

them depends upon the field your cursor is in. Oracle Applications displays an uppercase word, called a

lamp, at the bottom of your terminal screen to tell you when these features are available. We also tell you

which of these features are available in each field description; in much the same way we summarize a

fields characteristics.

PICK- The PICK lamp indicates that you can use QuickPick to choose from a list of values for your

current field. The QuickPick pop-up window displays only valid values, helping you enter valid data in a

field. Use Field QuickPick to invoke QuickPick.

HELP- The HELP lamp indicates that you can get help information for this field. Help information is

context-sensitive, so you get different help when your cursor is in different fields. The HELP lamp lights

almost continuously because we always offer you context-sensitive help. You can always use \ Help

Screen to view help for the current form. You can also frequently use \ Help Zone or \ Help Field to see

help for the current zone or field.

EDIT- The EDIT lamp indicates that you can invoke the field editor to display the entire contents of the

current field in a pop-up window. If a field is Display only, you can use the field editor to view but not edit

the field value. Otherwise, you can use the field editor to change the field value. Use \ Field Edit to invokethe field editor.

ZOOM- The ZOOM lamp indicates that you can interrupt your work on this form, make a side trip to

another form to view or change information, and then return to the original form and pick up where you left

off. If you change any information when you zoom, you can see your changes when you return to your

original form. Use \ Other Zoom to invoke Zoom.


13/96



India Localization - Setup

This chapter explains setups that need to be completed before using India Localization. It discusses the

following concepts:

Mandatory Base Applications Setups India Localizations Setups India Localizations Setup Flowchart India Localizations Setup Steps - Overview


14/96



Oracle Financials Base Implementation

This topic lists the implementation steps for System Administration, Set of Books, General Ledger (GL),

Accounts Payable (AP), and Accounts Receivable (AR) modules. Refer to the respective modules Users

Guide for more details on the Implementation steps. If there is an integration specific instruction for thestep, then it appears under the step and path. Otherwise, just the step is shown. The intent of this section is

to highlight dependencies between Oracle Financials and Oracle India Localization. It is not to rephrase or

replace respective modules Users Guide.

The following topics are covered:

Getting Started System Administrator Setup Set of Books Setup General Ledger or Government General Ledger Setup Accounts Receivables Setup AR Flexfield Setup AR Descriptive Flexfield Setup

Accounts Receivables Setup Steps Accounts Payables Setup


15/96



Getting Started

The following list provides the recommended order for installing and implementing your software for

Oracle Financials 11iand India Localization 11i.To ensure a smooth implementation of the integration,

follow this order:

1. Installation of Oracle Financials 11i. Refer to one of the following Installation

Manuals:

Oracle Applications Installation Manual for UNIX, Release 11i

Oracle Applications Upgrade Preparation Manual for UNIX, Release 11i

2. Installation of India Localization 11i. Refer to one of the following Installation Instructions:

India Localization Patch Installation Instructions

3. Implementation of Multiple Organizations Setup is a pre-requisite for India Localization. To implement

multiple organizations setup, refer to:

Multiple Organizations in Oracle Applications Release 11imanual.

For Step 2, Define Sets of Books, refer to the Set of Books Setup topics in this manual for integration

dependencies. For Step 11, Implement the Application Products, refer to the System Administration Setup,

General Ledger (GL) Setup, Accounts Payable (AP) Setup, and Accounts Receivable (AR) Setup topics in

this manual for integration dependencies.


16/96



System Administrator Setup

Prior to implementing, you must complete the implementation of Multiple Organizations Setup. If you are

implementing the multiple organizations setup, then refer to:

Multiple Organizations in Oracle Applications Release 11i manual.

For Step 2, Define Sets of Books, refer to the Set of Books Setup topics in this manual for integration

dependencies. For Step 11, Implement the Application Products, refer to the System Administration Setup,

General Ledger (GL) Setup, Accounts Payable (AP) Setup, and Accounts Receivable (AR) Setup topics in

this manual for integration dependencies.


17/96



Set of Books Setup

Define Your Chart of Accounts (Accounting Flexfields) (Required) Define Your Accounting Flexfield Combinations (Optional)

Define Your Calendar Period Types (Required with Defaults) Define Your Calendar Periods (Required) Define Your Transactions Calendar (ADB) (Optional)

Define Your CurrenciesNote

(Required with Defaults)

Setup Currencies Define

Define Set of Books (Required) Assign Set of Books to a Responsibility (Required) Define Daily Conversion Rate Types (Required with Defaults) Define Your Rates (Optional)

Note The Functional Currency should always be INR


18/96



General Ledger or Government General LedgerSetup

Define your Set of Books (Required) Define Journal Entry Sources (Required With Defaults) Define Journal Entry Categories (Required with Defaults) Define Suspense Accounts (Optional) Define Inter-company Accounts (Optional) Define Summary Accounts (Optional) Define Statistical Units of Measure (Optional) Define Historical Rates (Optional) Define Document Sequences (Optional) Set up Automatic Posting (Optional) Define Additional Encumbrance Types (Optional) Define System Controls (Required With Defaults) Define Budgetary Control Groups (Optional) Set Profile Options (Required)

Open and Close Accounting Periods (Required)


19/96



Accounts Receivables Setup

Note: If you do not have Accounts Receivables installed, skip this section.

AR Descriptive Flexfield Setup

Setup Descriptive Flexfields for the following: Line Transaction Flexfield for AutoInvoicing Customer for Customer Entry Transaction Type for Debit/Credit Memo Inventory Adjustment


20/96



Accounts Receivables Setup Steps

Note: If you do not have Accounts Receivables installed, skip this section.

Define Your Set of Books (Required) Decide How to Use the Account Generator (Required) Define Your System Item Flexfield Structure (Required) Define Your Organizations (Required) Define Your Territory Flexfield (Optional) Define Your Sales Tax Location Flexfield Structure (Required with Defaults) Define Flexfield Address Formats (Optional) Maintain Countries and Territories (Optional) Define Your Transaction Flexfield Structure (Optional) Define Your AutoCash Rule Sets (Optional) Define Your QuickCodes (Optional) Define Your AutoInvoice Line Ordering Rules (Optional) Define Your AutoInvoice Grouping Rules (Optional) Define Your System Options (Required)

Define your Payment Terms (Required with Defaults) Define Your Accounting Rules (Optional) Open Your Accounting Periods (Required) Define Your AutoAccounting (Required) Set Up Cash Basis Accounting (Optional) Define Your Transaction Types (Required with Defaults) Define Your Transaction Sources (Required) Define Your Collectors (Required with Defaults) Define Your Adjustment Approval Limits (Required) Define Your Remittance Banks (Required) Define Your Distribution Sets (Optional) Define Your Receivables Activities (Required) Define Your Receipt Classes (Required)

Define Your Payment Methods (Required) Define Your Receipt Sources (Required) Define Your Aging Buckets (Required with Defaults) Define Your Statement Cycles (Optional) Define Your Statement Messages (Optional) Define Your Dunning Letters (Optional) Define Your Dunning Letter Sets (Optional) Define Your Territories (Optional) Define Your Salespeople (Required with Defaults) Define Your Profile Options (Required) Define Your Tax Codes. Define Localization Tax Code. This code has to be attached to all Items &Customers for whom India Localization Taxes have to default. This tax code

should not have an end date entered against it. Define Your Customer Profile Classes (Required with Defaults) Define Your Customers (Required) Define Your Remit-To Addresses (Required) Define Your Customer Relationships (Optional) Define Your Customer Banks (Optional) Define Your Lockboxes (Optional) Define Your Transmission Format (Optional) Define Your Receipt Programs (Optional) Define Your Unit of Measure Classes (Optional)


21/96



Define Your Unit of Measure (Required with Defaults) Define Your Standard Memo Lines (Optional) Define Your Item Tax Rate Exceptions (Optional) Define Your Tax Exemptions (Optional) Define Your Document Sequences (Optional)


22/96



Accounts Payables Setup

Note:If you do not have Accounts Payables installed, skip this section.

Install or upgrade Payables (Required) Create application user sign-ons and passwords (Required) Define your Chart of Accounts (Required) Define your Accounting Period Types and Accounting Calendar Periods (Required) Enable Currencies that you plan to use (Optional) Define a Set of Books (Required) Assign your Set of Books to a Responsibility (Required) To enter foreign currency transactions, define additional Rate Types, and enter your Daily

Rates (Optional) Choose a Primary Set of Books (Required) Use the Application Developer responsibility to set the GL Set of Books ID profile option to

Updateable (Required) Use the System Administrator responsibility to set the GL Set of Books Name profile option.

If you are performing a single set of books installation, set the option for the Oracle

Payables application. If you are performing a multiple set of books installation, set theoption for each unique combination of organization and responsibility (Required)

Define Payment Terms (Required) Setup Invoices Payment Terms Define Your Purchase Order Matching Tolerances (Optional) Define Invoice Approval Codes (Required With Defaults) Define Distribution Sets (Optional) Define Purchasing Lookups (Required With Default) If you want to use Automatic Interest Calculation, define Payment Interest Rates (Optional) If you want to use Payables to enter employee expense reports, create templates for

entering expense reports (Optional) If you use Payables to enter employees in your organization, enter employee QuickCodes

(Optional)

Enter Locations (Required) Enter Employees (Conditionally Required) If or Oracle Purchasing is installed, you must define at least one Inventory Organization

before defining Financials Options (Conditionally Required) Define Financials options (Required) Define Payables options (Required) Define Payment Programs (Required with Defaults) Define any additional Payment Formats (Optional) Update country and territory information and assign flexible address formats (Optional) Define Bank Accounts (Required) Open Your Accounting Periods (Required) Define Request Sets (Optional) Define the format for the Expense Distribution Detail Report, and define the format for the

Invoice Aging Report (Optional) Set up Print Styles and Drivers for the Supplier Mailing Labels Report (Optional) Define special calendars for key indicators, and recurring invoices (Optional) Implement Budgetary Control in General Ledger (Optional) Implement Sequential Voucher Numbering (Optional) Define Descriptive Flexfields (Optional)


23/96



Inventory Setup

Define Items Flexfield (Required) Define Item Categories Flexfield (Required) Define Item Catalog Group Flexfield (Required),

Define Stock Locators Flexfield (Required) Define Account Aliases Flexfield (Required) Define Sales Orders Flexfield (Required)

Define LocationsNote

(Optional) Define Employees (Optional) Define Organization Calendar (Optional)

Define OrganizationsNote

(Required) Define Organization Parameters (Optional) Change Organizations (Required) Define Intercompany Relations (Required) Define Receiving Options (Optional) Define Picking Rules (Optional) Define ATP Rules (Optional)

Define Planners (Optional) Define Unit of Measure Classes (Required) Define Unit of Measure (Optional) Define Unit of Measure Conversions (Optional) Define Subinventories (Required) Define Stock Locators (Optional) Define Item Attribute Controls (Required) Define Categories (Required) Define Category Set (Required) Define Default Category Sets (Required) Define Statuses (Required) Define Item Catalog Groups (Optional) Define Item Types (Optional)

Define Item Templates (Optional) Define Items (Optional) Define CrossReference Types (Optional) Define Item Delete Constraints (Optional) Define Cost Types (Required) Define Cost Activities (Optional) Define Material SubElements (Optional) Define Material Overheads (Optional) Define Default Material Overhead Rates (Optional) Define Freight Carriers (Optional) Define Organization Shipping Network (Optional) Define Shipping Methods (Optional) Define Movement Statistics Parameters (Optional)

Define Economic Zones (Optional) Define Account Aliases (Optional) Define Transaction Source Types (Optional) Define Transaction Types (Optional) Define Transaction Reasons (Optional) Define Purchasing Options (Optional) Define Accounting Periods (Required) Request Interface Managers (Optional) Set Profile Options (Required) Define Container Types (Optional)


24/96



Define Commodity Codes (Optional) Define Customer Items (Optional) Define Customer Item Cross References (Optional) Define Notification List (Optional) Define Shortage Parameters (Optional) Define Kanban Pull Sequences (Optional)

Note

Ensure that the Organizations are assigned to Locations before you setup Additional Organization

Information for Localization.


25/96



Overview of Setting Up India LocalizationThis section contains an overview of each task you need to complete to set up Oracle India Localization.


26/96



Setup FlowchartTo assist you to easily setup your India Localization application, a flowchart is provided in figure 1 Setup

Flowchart. Some of the steps outlined in this flowchart are requiredand some are Optional. Required step

with Defaultsmeans that the setup functionality comes with preseeded, default values in the database.

However, to ensure a successful setup, you need to review those defaults and decide whether to change

them to suit your business needs. If you need to change the default values, you should perform thecorresponding setup step. You need to perform Optionalsteps only if you plan to use the related feature or

complete certain business functions.

Figure 1 Setup Flowchart


27/96



Setup ChecklistThe following table lists setup steps and a reference to their location within the Application. After you log

on to Oracle Applications, complete these steps to implement Oracle India Localization:

Oracle India Inventory

Step No Required Step Title

Step 1 Required Define Organization Additional Information

Step 2 Optional Define Trading Registration Details

Step 3 Required Define Accounts Information for Organization

Step 4 Required Define Tax Calendar

Step 5 Optional Define Excise Invoice Generation

Step 6 Required Define Sub Inventory Locations

Step 7 Required Define Item Localization Information

Step 8 Required Define Tax Codes

Step 9 Required Define Tax Categories

Step 10 Required Define Item Categories

Step 11 Optional Define Manual BOM

Oracle India PurchasingStep 12 Required Define Supplier Additional Information

Oracle India PayablesStep 13 Required Define TDS Related Information for the Organization

Step 14 Required Define Income Tax Authority

Step 15 Required Define TDS Sections

Step 16 Required Define TDS Tax Codes

Step 17 Required Defining TDS year Information

Step 18 Required Define TDS Details for Suppliers

Step 19 Required Define Customs Authority

Step 20 Required Defining BOE Agent

Step 21 Required Define Excise Authorities

Oracle India Order Management

Step 22 Required Define Bond Registers

Step 23 Optional Define Assessable Price Lists

Oracle India Receivables

Step 24 Required Customer Additional Information


28/96



Setup Steps

Step 1 Define Organization Additional Information

You must define the structure of your Inventory organizations and locations, which would be reporting tothe Local Tax Authorities. The information defined at this level would be the basis for Recording,

Reporting and accounting of the location taxes. Apart from this the user would also define the organization

registration details with Excise, Customs, Sales Tax and TDS authorities.

This information is available in additional organization information are the basic data for all IndiaLocalization activities and accounting. The Organization and Locations defined through CommonApplication would be available for setup. While creating the additional organization information, itis mandatory to create two sets of records, one at null location level and another with location.

The master child relationship among the organization and location would be used only for consolidation of

excise registers at Master organization level.

SeeAlso: Defining Organization Additional Information, India Local Inventory Chapter

Step 2 Define Organization Trading Information

You would enter the information of the organizations registered under the Central Excise Rules as a

Dealer/Depot. Navigate to Trading Information Tab of the Additional Organization Information to enter

Excise Registration details of a Dealer.

The information entered here would be printed on all relevant reports and invoices raised from this

Organization.

You would ensure that no values are entered in any of the fields falling under the Excise region of the Tax

Information tab of the additional organization information. Any value entered in this region would

categorize this organization as a Manufacturing Organization.

SeeAlso: Defining Trading Registration Details, India Local Inventory Chapter

Step 3 Define Organization Accounting Information

You would assign the appropriate General Ledger Accounts to which the Localization Taxes have to be

posted in the Account Information tab of the Organization Additional Information screen. The values

entered in the Parameters region would determine the behavior of localization taxes calculated for certain

transactions.

You will have to enter the register preferences. The excise register that should be hit when you ship

excisable goods would depend on the preferences assigned against each register. The register with the

lowest value would be considered first. The next register would be considered only when the exciseliability arising from the transaction exceeds the current register balance.

The only deviation from this logic would be when you check the Allow have balances in PLA field. If

this field is checked, then the PLA, when preferred, would be hit, even-though, the duty liability is higher

then the available balance in PLA.

SeeAlso: Defining Accounting Information for Organization, India Local Inventory Chapter


29/96



Step 4 Define Tax Calendar

Localization taxes would be calculated only when the transaction falls within the active year. You can keep

only one year active at a time. The Tax Calendar defined for an Organization NULL location would be

defaulted to the other Organization Additional Information records created for the locations with this

organization.

SeeAlso: Defining Tax Calendar, India Local Inventory Chapter

Step 5 Define Excise Invoice Generation

This feature can be used to automate the Excise Invoice document sequence generation. You can setup a

document sequence for the combination of Transaction Type, Order/Invoice Type and Register Type. You

can define an alpha/numeric value which would be prefixed to the number series generated for each excise

invoice. The setup would be restricted to the Order/Invoice Types for which it is created. For all other

Excise Invoices which are created using Order/Invoice Types for which setup has not been made, the

system use the default number series. This would be a numeric series, starting with 1, incremented by one.

The sequence would be different for each Organization/location and the nature of clearance. Within the

organization, the sequence would be different for the Domestic clearances and Export Clearances.

Before defining the user definable prefixes and excise invoice numbers, setups needs to be done in define

Bond register where the user needs to associate an Order type for all transactions Order Management

module and Transaction source for all transactions from Accounts Receivable module. The Order type and

transaction source will be associated with different type of excise removals (like domestic with excise,

Bond, Export with excise etc.). Only after associating an Order type/Transaction source with an excise

related transaction type, user should define the user definable prefixes and excise invoice numbers in this

region.

SeeAlso: Defining Excise Invoice Generation, India Local Inventory Chapter

Step 6 Define Sub-Inventory Locations

As a part of Localization setup, the sub-inventories have to be associated to a combination ofOrganization/Location. Excise related transactions and records would be updated only for those sub

inventories that are identified as bonded for manufacturing organizations and as traded for trading

organizations.

Step 7 Define Item Localization Information

The recording, recoverability and reporting of localization taxes would depend on the India Localization

related information setup for the item. These values have to be entered in the India Localization context

of the Items DFF, attached to the Item Master.

The updation of the Dispatch transaction into the Excise Register would be considered only when the

Excise Flag is set to YES. Similarly, considering CENVAT Credit and updating the Excise Registers, for

a Receiving transaction would be considered only when the Modvat flag is set to Yes. The optionchosen in the Item Class attribute would be the basis on which, the type of excise credit register that has to

be hit. Items classified in the other classes (such as OTIN, OTEX) would not be considered for any excise

record updation.

The Trading Flag would work together with the organization Trading Information setup. RG23D Register

would be hit only when the Trading item is transacted in a trading item.

Step 8 Define Tax Codes


30/96



The Tax Definition is a localization feature to define taxes that are applicable to the transactions created in

your organization. The Taxes can be classified in different Types. The Type would be useful to recognize

the relevance of the tax for the Excise Registers, Sales Tax form generation and TDS Certificate

generation. The Type chosen would also have influence over the behavior of other fields in this form. You

can specify the Tax Rate, surcharge, recoverability, rounding rule, expense account code, Tax (Third party)

vendor, multi-currency and effective period for the Tax. In a multi-organization setup, Taxes would be

specific to an organization. On choosing the Taxes Localized option from the menu, you would get the list

of Inventory Organizations, to choose from. The tax defined can be used only for the organization for

which it is defined. Taxes once saved, cannot be updated.

Step 9 Define Tax Categories

If you can identify your purchase and sales transactions into clear categories, for which a similar set of

taxes with similar precedence and calculation are applicable, then you can group such taxes into a Tax

Category. In a Tax Category you can choose the Taxes, along with the precedence order and calculation

basis.

An Item Class can be identified for a Tax Category. These taxes would default for all the Items falling inthis class. This would be useful, where the Item class drives the tax applicability. These taxes would default

for the transactions created for the items in the item class. You can however, manually add new tax lines

and can change, delete, change precedence for the defaulted lines.

Step 10 Define Item Categories

Item Category allows you to assign Tax Categories to an inventory items in an Organization. You can

attach an item category to the Additional customer/supplier information. The Taxes defaulted for a

transaction line would be based on the Item Category attached to the Supplier/customer and the Tax

Category assigned to the Item in this category.

Step 11. Define Manual Bill Of Material (BOM)

Use this feature to enter Bill of Material for a Finished Item. It would be required only when you have not

implemented Oracle BOM. You can define can define a Bill of material for same item effective during

different periods. This feature would be would be required for Duty Drawback Processing and Outside

Processing transactions.

The BOM setup can be made only for a finished goods Inventory item.

Step 12 Define Supplier Additional Information

Before you start using the Supplier/ supplier site for a localization transaction, it would be a necessary for

you to define India Localization related information for the Supplier/ Supplier Site. The supplierregistration information, with various tax authorities, Assessable Price List that would be the base for the

calculation of the Excise Base Amount and default Item Category can be defined here. The definition

would be the can be for the Supplier NULL Site and for Supplier Site. The primarily Tax defaulting would

be from the Supplier Site. In absence of any Tax Category at this level, the system would pickup the value

from the NULL Site. If you are working on a multi-org environment, then the Addition supplier

information defined for a Supplier Site from one organization cannot be accessed from any other

organization.


31/96



You will also have to enter the Income Tax and TDS related details applicable for the Supplier Site.

If your supplier is located within the State where your organization is located, then you should enter his

Registration Number with the Local Sales Tax Authority in the LST Reg. No. Field. Else, you should be

entering the CST Number in the CST Reg. No field. However, you would leave both the fields blank when

the Supplier Site is not registered as dealer with any of the Sales Tax Authorities. This setup is mandatory

for the generation of Sales Tax Reports provided by localization for transactions within the state, outside

the state and transactions from un-registered dealers.

Step 13 Define Organization Income Tax Registration Info

If you plan to use the TDS functionality for an Organization, it would become mandatory for you to enter

the Income Tax Registration details in the India Org. Info context of the DFF attached to the Organization

screen.

Step 14 Define Income Tax Authority

The liability arising from the Income Tax Deducted at source, while making supplier payments needs to be

accounted against an Income Tax Authority. You would create a Supplier and Site for this Authority.Additionally, in the Type field on the Classification tab, choose Tax Authority-IND. On doing this, when

defining a Tax Deduction at Source Type of Tax, the Supplier name would be listed in the Vendor field

LOV on the Tax Definition screen

Step 15 Define TDS Sections

India Localization comes with preseeded, default TDS Sections in the database. However, you should

review these default sections and decide whether to change them to suit your business needs. If you want or

need to change them, you should query on the TDS_Sections from the Purchase Lookup Codes and add a

new record, with the relevant descriptions and the effective period. As the same codes are also used for the

Works Contract Tax applicable in you state, you might prefer to a new records for defining the relevant

sections.

Step 16 Define TDS Tax Codes

You would use the Tax Definition screen to define the TDS Codes. Choose the Tax Deduction at Source

option in the Type LOV. Select the Vendor Name, Vendor Site, Account and TDS Section No. Enter the

value in the Percentage and Rounding Factor fields. Enter the value in the Surcharge field, wherever

necessary.

Step 17 Define TDS Year

Before you start using the TDS functionality in an Organization, you will have to setup TDS Year

Information. This year would be the Income Tax Reporting Year and is independent of the Tax Calendardefined in the Inventory Module. The TDS limits and TDS reports TDS Certificate would be based on the

period. This year would be the Financial Year defined under the Income Tax Act. There can only be one

TDS Year open at a time.


32/96



Step 18 Define Supplier Additional Information TDS Details

For the supplier for whom the TDS has to be calculated, recorded and reported, you will have to define the

TDS Details in the Supplier Additional Information. You would define the Registration Details and the

Applicable TDS Sections and TDS Tax Code that has to default for the transaction created for the Supplier.

Where the Registration and the Tax calculation details are the same for all supplier sites, you can define the

TDS Details for the Supplier NULL Site. The same details would be applicable for all transactions

created any of the Sites.

Where the TDS Details are different for the Sites, you can define the Registration Details at the Supplier

NULL Site. For all the sites setup made for this Supplier, the TAN No and Ward Number defaults. You

will have to enter the TAN No. and the TDS TAX Name and the relevant TDS Sections. If you have not

entered the default TDS Tax Code in the TDS TAX Name field, for the supplier site, then the TDS TAX

Name defined at the Supplier NULL Site would be considered for the Invoice.

The Approval of TDS related information would depend on the value in the Create Pre-Approved TDS

Invoice & Credit Memo Field.

Step 19 Define Customs Authority

The Duty advance paid to the Customs Authority has to be booked against a Customs Authority, through a

Bill of Entry. Before you create a Bill of Entry India Localization Transaction, you should have defined a

Customs Authority. You would create a Supplier and Site for this Authority. Additionally, in the Type field

on the Classification tab, choose Custom Authorities-IND. On doing this, when defining a Bill of Entry

transaction, the Supplier name would be listed in the Customs Authority field LOV on the Bill of Entry

India Localization screen.

Step 20 Define BOE Agent

It would be a pre-requisite to define a BOE Agent before you do a BOE Transaction. Navigate to the

Payables Setup and define the Clearing & agent information. The agent codes would appear in the LOV ofAgent Code field of the Bill of Entry screen.

Step 21 Define Excise Authority

The Excise advance/settlement paid to the Excise Authority has to be booked against an Excise Authority,

through the Capture PLA Payments India Localization screen. Before you create a PLA Payment

Transaction, you should have defined an Excise Authority. You would create a Supplier and Site for this

Authority. Additionally, in the Type field on the Classification tab, choose Excise Authorities-IND. On

doing this, when defining a PLA Payment transaction, the Supplier name would be listed in the LOV of the

Authority field on the Capture PLA Payments India Localization screen.

Step 22 Define Bond Registers

The calculation of excise duty and updation of excise registers are based on the setup made in the define

bond register. Before making this set up the user need to define the Order types and transaction sources.

Excise transactions are classified as:

Domestic with Excise

Domestic without Excise


33/96



Export with Excise

Bond Register (Export under Bond)

Excise transactions need to be identified based on the Organization/Location combination and against each

excise transaction multiple Order types and Transaction sources can be assigned. Order type need to be

assigned to excise related transactions from Order Management Module and Transaction source need to be

assigned for all excise related transactions through the Receivable module. If the Organization/location is

of manufacturing type, excise related transactions for manufacturing set up need to be associated. Like

wise, if the organization/location is trading excise related transactions for trading need to be associated.

By associating the Order Types to the excise transactions for an Inventory Organization and Location, the

related Excise Record entries will be passed based on the nature of goods cleared.

Step 23 Define Assessable Price Lists

If the Taxable basis for the calculation of the excise duty is different from the Price at which the item is

sold, the, you will have to create additional Price lists with the Item Excise Assessable Price.

This price list has to be attached to the Customer/Customer Site and Supplier/Supplier Site. The assessable

price would be considered only for the calculation of the excise duty.

Step 24 Define Customer Additional Information

Before you start creating transactions for the customer, it would pre-requisite to record the localization

related information for the Customer Site. You would enter the customer Registration details with the

Excise, Sales Tax and Income Tax Authorities. You will also attach the Assessable Price list that should be

considered for the calculation of excise duty. You would also define the Item Category list that would be

basis for the defaultation of the localization taxes.

You will have to make this setup for each Customer Site.

You can enable the exempt flag for the Customer Sites exempted from excise duty.


34/96



India Local Inventory

This chapter explains how to use the Oracle Inventory functionality developed for India.

It discusses the following concepts:

Overview of Miscellaneous Transactions Overview of Inventory and WIP Transactions that update Excise Registers Setting up India Localization Organizations and Taxes Managing Miscellaneous Transactions Reports


35/96



Miscellaneous Transactions Overview

You can use the Miscellaneous Transactions to register effect of inventory movements on Excise Registers.

You can record inventory issues and receipts to and from production using Miscellaneous Issue/receipt (RG

Update) and the respective excise inventory registers are updated with these transactions.


36/96



Inventory & WIP Transactions Overview

India Localization supports certain transactions in order to keep track of movement of Excisable Goods.

Whenever there is a Transaction using Excisable goods is created from the following features supported by

Base Application, then India Localization updates Excise Quantity Registers. Following is a list of suchtransactions and their impact of Excise Registers:

Transaction Type

Impact on Excise Registers for Item Types

RMIN CCIN FGIN CGIN OTINMiscellaneous Receipt RG

Update

RG 23A Part

1 RG 1 RG 1

RG 23C

Part 1 NA

Miscellaneous Issue RG

Update

RG 23A Part

1

First RG 23A Part 1, then

RG 1 RG 1

RG 23C

Part 1 NA

Cycle Count Adjustment.

RG 23A Part

1 RG 23A Part 1 RG 1 NA NA

Physical Inventory

Adjustment.

RG 23A Part

1 RG 23A Part 1 RG 1

RG 23C

Part 1 NA

Move Order Issue

RG 23A Part

1 RG1 RG 1 NA NA

WIP Component Return.

RG 23A Part

1 RG 1 RG 1 NA NA

WIP Assembly Completion.

RG 23A Part

1 RG 1 RG 1 NA NA

WIP Assembly Return.RG 23A Part1 RG 1 RG 1 NA NA

WIP Negative Component

Issue.

RG 23A Part

1 RG 1 RG 1 NA NA

WIP Negative Component

Return.

RG 23A Part

1 RG 1 RG 1 NA NA

WIP Scrap Transaction.

RG 23A Part

1 RG 1 RG 1 NA NA

Staging transfer of a sales

order

RG 23A Part

1 RG 1 RG 1 NA NA


37/96



Setting Up Organization Information in IndiaLocalization -Inventory

This section describes the setup procedures for India Localization Inventory. You must enter the setup

information for your company before you using Inventory, Purchasing, Order Management and

Receivables modules of India Localization.

Defining Organization Additional Information

This form provides with additional information regarding inventory organization. The information

available in additional organization information is the basic data for all India Localization activities and

accounting.

The User has to define an Organization and Location through Standard Application form. In the this form

he will define additional information for an Organization Location and each Organization Location will be

identified as an Excise/Tax Unit

While creating the additional organization information, it is mandatory to create two sets of records, one atnull location level and another with location.

If multiple organizations are defined within the same excise registered premises, user can opt to identify

one Organization & Location combination as "Master Organization" and all other organizations needs to be

treated as child and should have the reference of the master organization based on ECC code. In such type

of setup, the Master organization will be the organization at which all excise registers should be generated

only from the Master organization.

Note

The master child relationship among the organization and location are used only to generate consolidated

excise registers at Master organization level. You need to submit India Master Org RG request set in

order to get Excise Registers consolidated at Master Organization.

Prerequisites

Before you enter the Organization Additional Information, you must:

Define Organizations Define Locations Assign Organizations to Locations

In Oracle India Localization, navigate to the Organization Tax Information India Localization window as

follows:

Setup OrganizationAdditional Information


38/96



The screen layout and its feature are described below for ready reference.

Field Description Type Action Description

OrganizationName/Location

(Required) EDITHELPPICK

The user defined inventory organization nameneeds to be picked up here from LOV for whichthe additional information is going to be

incorporated. The user from LOV will select thelocation for a particular organization.

MasterOrganizationinformation BlockMasterOrganization flag

This check box decides whether theorganization is a master organization or a childorganization. If it is a child organization, thisneeds to be attached to the Master organization.Consolidated Excise registers can be generatedfrom the Master organization.

Note: In the Master Org. Information block you have to specify whether the organizationrepresents an Excise licensed Organization or a child organization. If you select a childorganization, you need to specify which is the Excise licensed organization under which the childorganization belongs. For a master organization and location combination you need to enablethe Master Organization flag. This should be done for the Organization with Location specified.


39/96



The ECC number defined for the mater organization would default to all child organizations whenmaster organization is selected.

Excise Block The following information are related to ExciseRegistration for a Inventory Organization Location whichis of Manufacturing Type. If No Values are entered in this

block, then the Organization Location is notmanufacturing enabled.

Excise Range (Optional) Details of the Jurisdictional Central Excise range officeof the Organization can be entered in this block. Valuesgiven in this field will be taken while printing all Exciserelated documents.

ExciseDivision

(Optional) Details of the jurisdictional Central Excise Division officeof the Organization can be entered in this block. Valuesgiven in this field will be taken while printing all Exciserelated documents.

ExciseRegistrationNumber

(Optional) The number of the Central Excise registration certificatecan be entered in this field. This information will betaken while printing all Excise related documents.

Excise Zone (Optional) This is an additional field provided where in the user canrecord some information which he needs to print in allexcise related documents.

Excise Region (Optional) This is an additional field provided where in the user can

record some information which he needs to print in allexcise related documents.

Excise Circle (Optional) This is an additional field provided where in the user canrecord some information which he needs to print in allexcise related documents.

ExciseCollectorate

(Optional) Details of the jurisdictional office of the Central ExciseCommissioner of the Organization can be entered in thisblock. Values given in this field will be taken whileprinting all Excise related documents.

EC Code (Optional) Use this field to enter Excise Control Code of anInventory Organization Location. This would be printedon all the documents that are required under ExciseRules.If the user opts for the Master organization concept, heneeds to ensure that the same ECC Number given in theMaster organization is replicated in the respective childorganizations.


40/96



Excise Invoiceat EC Code

(Optional) Check this field in case you wish to generate ExciseIn case you have multiple internal inventoryorganizations/ warehouses shall be existing within thesame Excise registered premises and you would opt forExcise Invoice number generation at the MasterOrganization level then, check this option.

ExportOriented Unit (Optional) Use this field to indicate whether theOrganization/Location is a Export Oriented Unit. Onchecking this flag the CENVAT liability arising onshipment would be matched component-wise with thecredit available for that Excise Component. You wouldnot be able to complete shipment if the credit availablefor Excise Component is inadequate.

Sales TaxBlockCST Reg. No. (Optional) Use this field to enter Central Sales Tax Registration

Number of an Inventory Organization Location. Thiswould be printed on all the documents that are requiredunder Sales Tax Act.

LST Reg. No (Optional) Use this field to enter State Sales Tax RegistrationNumber of an Inventory Organization Location. Thiswould be printed on all the documents that are requiredunder Sales Tax Act.

Income TaxBlock

(Optional)

PAN No Use this field to enter Permanent Account No of anInventory Organization Location. This would be printedon all the documents that are required under Income Tax

Act.

NoteThis field is redundant

TAN No (Optional) Use this field to enter TDS Account No of an InventoryOrganization Location. This would be printed on all thedocuments that are required under Income Tax Act.


WARD No (Optional) Use this field to enter Ward No of an InventoryOrganization Location. This would be printed on all thedocuments that are required under Income Tax Act.


VAT Reg No. (Optional) Use this field to enter VAT Registration No of anInventory Organization Location.


41/96



Note: Please note that if an Inventory Organization Location is a Manufacturing unit (Not aTrading unit) and you enter details in the Tax Info Block, then you will not be allowed to enter anyinformation in the Excise -Trading Information Block through Trading Information Button.

Similarly if an Inventory Organization Location is a Trading unit (Not a Manufacturing unit) thenNo Information should be entered in this Tax Info Block since this Excise Block is meant forentering Excise Registration details for a Manufacturing Inventory Organization/Location.


42/96



Defining Trading Registration DetailsRefer to the Trading Chapter of the User Guide for details of Setups required for a Trading Organization.


43/96



Defining Accounting Information for Organization

You should ensure that you specify appropriate general ledger accounts in the AccountsInformation region. This information would be used to account for Localization transactions. Itsmandatory to enter values in all the fields. Details of those fields and its significance are

discussed below.

Prerequisites

Before you enter the Accounts Information - Organization Additional Information, you must:

Define Organizations Define Locations Organization Additional Information

In Oracle India Localization, navigate to the Organization tax Information India Localizationwindow as follows:

Setup OrganizationAdditional InformationAccounts Information


44/96



The screen layout and its feature are described below for ready reference.

FieldDescription

Type Action Description

AccountsInformationBlock

These accounting information are necessary foran inventory organization through which all thecharges related to an item on taxes will charged torespective accounting flex fields. The user needsto define separate accounting flex-fields for OSPExcise a/c, Excise expenses, Excise receivable,CENVAT on Raw Material, CENVAT on CapitalGoods, Personal Ledger Account, Excise -RG23D,Bill of entry, Scrap cost, CENVAT Reversal,Customs write off a/c.

OSP Excise (Required) PICKHELPEDIT

This account will be used to pay the excise dutyon goods sent for Outside processing. This isusually a Expenses a/c.

ExciseExpenses

(Required) PICKHELPEDIT

Enter a general ledger account for ExciseExpenses Account. This default account is beingused to track the Excise duty due from the excisedepartment on account of customer returnstreated as FG return or scrap.

ExcisePayable/paid


Enter a default general ledger account to bedefaulted on all AR transaction entry windows forAccounting Excise Duty paid on delivery of goods.This account will debit for the total Excise amountwhenever shipment is confirmed to a customerand AR Invoice is raised.

CENVAT RM (Required) PICK

HELPEDIT

Enter a default general ledger account to be

defaulted on all transaction entry windows forCENVAT Raw Material account. This is the defaultGL account that will hit while performing a receiptwith CENVAT credit (inputs) This is usually anasset account.

CENVAT CG (Required) PICKHELPEDIT

Enter a default general ledger account to bedefaulted on all transaction entry windows forCENVAT Capital Goods account. This is thedefault GL account that will hit while performing areceipt with CENVAT credit (Capital Goods) . Thisis usually an asset account.

Bill of Entry (Required ) PICKHELPEDIT

Enter a default general ledger account to bedefaulted on creation of Bill of entry and onapplying Bill of Entry to Receipt. This is usually anasset account.

Excise RG23D (Required) PICKHELPEDIT

Excise Duty Account for trading item and thisaccount will be updated for transaction happenedin a Trading Organization Location.


45/96



CENVATReversal


This CENVAT Reversal a/c will be updated forReversal entry passed on account of ExciseExemption & CT2 form transactions in anInventory Organization Location.

CENVATReceivable

Account

(Required) PICKHELP

EDIT

The user needs to define a GL Account of Assettype that needs to hit while performing CENVAT

credit transactions for the capital goods. As perthe provisions of Excise Rules, the manufacturer ispermitted only to take 50% of the duty paid oncapital goods at the time of receipt and thebalance can be availed in the succeeding financialyear. The amount that needs to be claimed laterwill be accounted in this ledger account.

Customs writeoff


This Customs write off a/c will be updated for awritten off amount from Bill of Entry a/c when everamount is written off from BOE.

Allow tax

change onreceipt

(Optional) CHECK

BOX

By enabling this flag, the taxes in the receipt

defaulted from the original purchase order couldbe changed.

RG ExciseRounding


This field would be updated with the differentialduty that needs to be adjusted in setting Exciseduty amount to the nearest rupee.

Cess AccountsInformationBlock

The information specified in this block would beused to account for the Cess on Excise taxesapplicable to transactions in Procurement andSale.

Cess PaidPayable

(Required) PICKHELP

EDIT

Specify a general ledger account to be used inaccounting for shipment Education Cess on

Excise involved in Shipment transactions.

This account would be debits with the totalEducation Cess (on Excise) amount. While, thecorresponding Duty register account would becredited.

ExciseExpenses


Enter a general ledger account for ExciseExpenses Account. This default account is beingused to track the Excise duty due from the excisedepartment on account of customer returnstreated as FG return or scrap.

CESS RM (Required) PICKHELPEDIT

Specify a general ledger account that would beused to Account for the Education Cess recoveredon purchase of raw material. This account wouldbe credited on shipment when the excise liabilityarising from the shipment transaction is met byutilizing the Cess credit available in RG 23 ARegister.


46/96



CESS CG (Required) PICKHELPEDIT

Specify a general ledger account that would beused to Account for the Education Cess recoveredon purchase of Capital Goods. This account wouldbe credited on shipment when the excise liabilityarising from the shipment transaction is met byutilizing the Cess credit available in RG 23 CRegister.

Excise CessRoundingAccount

(Required) CHECKBOX

Specify an account that would be used inaccounting the rounding differences arising fromthe Education Cess on Purchasing transactions.

This account would be debited when the Cessrounding amount for the Excise Invoice is anegative amount. Similarly, this account would becredited when the Cess rounding amount for theExcise Invoice is a positive amount.

CESSReceivable

Account

(Required) PICKHELP

EDIT

The GL Account specified here would be used inaccounting for Cess included in purchase of

Capital Goods.

As per the CENVAT Credit Rules, themanufacturer is permitted only to take 50% of theduty paid on capital goods at the time of receiptand the balance can be availed in the succeedingfinancial year. The amount that needs to beclaimed later will be debited in this account.

RTV Expense (Required) PICKHELPEDIT

This field would be debited with the differentialduty that needs to be paid in a RTV transaction.You should have also checked the RTV AccountFlag check box in this window.

This account would also be debited with the ThirdParty, Customs and CVD tax amounts included inReturn to Vendor transaction.

Allow negativebalance in PLA

(Optional) CHECKBOX

By enabling this check box, the user will be able toover draw from the PLA Balance available withhim. If this is not enabled, system will holdshipments for want of funds in PLA.

Allow taxchange on ROIreceipts

(Optional) CHECKBOX

When the receipt is created from Receiving openinterface user has an option to modify the taxes.

Allow tax

change onWMS receipts

(Optional) CHECK

BOX

User has an option to modify the taxes when

receipt is created from WMS module.


47/96



Allow DispatchQty to exceedOriginal Qty.

(Default=N) CHECKBOX

In Approve Dispatch 57F4 form ,a simple popupdecision window will be populated with Yes/NO forthe user to decide.This popup should be enabled based on "AllowDispatch qty greater than Original Qty" inadditional info.If the flag is not set then there will not be anypopup.

When clicked on Approve Dispatch button, thisPopup will be a stack message which gives all theline numbers with Dispatch qty greater thanOriginal Qty for the users to correct / take adecision.If clicked on Yes then its accepted, If clicked NOthen the cursor will point to the first record forcorrection.

RTV AccountFlag

(Required) CHECKBOX

You should check this field only when you havedecided that you would debit the supplier only withthe Excise Duty paid by him during the supply of

goods. Once this check box is enabled, you will beable to associate an account where the differentialduty needs to be accounted.

This account is also debited with Third PartyTaxes included in an RTV.


48/96


49/96



DefiningRegisterPreferences

This parameter decides the preference of hitting theduty payment register while performing a ship confirmtransaction in Order Management or a TransactionLocalized in the AR Module. You are not permitted todebit duty from different duty paying registers for asingle transaction.

If the balance available in each of the CENVAT Registers and PLA is less than Excise Dutyliability arising from the ship confirms transaction, then the Interface Trip Stop request completeswith error and the shipment transaction remains incomplete. In a scenario, where you have optedfor a fortnightly settlement, you can ship with inadequate CENVAT credit. To meet such situationsyou can enable allow negative balance in PLA and set PLA preference to

1. On doing this, all excise payments are done through PLA register and periodic adjustmentstowards payment of excise duty can be done through RG Consolidation screen. In such type ofsetup, the CENVAT registers will have entries only for the credit availed and the adjustmentsmade while computing the exact excise liability (fund transfer from CENVAT register to PLAregister).

Note:1. You should take care to get necessary concurrence from the local excise authorities beforerolling down with the new system.2. On RTV, the registers that would be updated would be based on the preferences.


50/96



Defining Tax CalendarAs part of Localization setup you need to define the Tax calendar. Excise Registers would beupdated only for the Active Period. Only one period can be active at a time.

Prerequisites

Before you enter the Tax Calendar - Organization Additional Information, you must:


In Oracle India Localization, navigate to the tax Calendar Information India Localization asfollows:

Setup Organization Additional Information Tax Calendar

The screen layout and its features are given here for ready reference.

FieldDescription


OrganizationName

/Location

(Displayed) The Inventory Organization/Location will be displayedfrom the Organization Tax Information.

Note: The Tax calendar should be defined only atOrganization level with null location. This calendar willbe defaulted for each location falling under theOrganization. The tax period in Localization is meant forsetting up the serial numbers of Excise registers andrelated localization reports.


51/96



Year/StartDate/End date

(Required) The user needs to specify the year and the starting andending date for that tax year.

The User can define the next Tax Calendar year through Open next year button, which will start a

concurrent process that will open the next year as the active year for which the taxes will beaccounted.

The user needs to take care while entering this Tax Calendar, if by mistake he opens next Openperiod, then the Active Flag gets enabled to next year and it cannot be changed.


52/96



Defining Excise Invoice GenerationTo generate excise invoices with pre-definable prefixes (Alpha/numeric), you need to completeExcise Invoice Generation Setup. If this setup is not done, system will generate only two series ofexcise invoices, one for domestic clearances and the other for export clearances and no prefixesfor the numbers generated can be maintained.

Prerequisites

Before you enter the Excise Invoice Generation - Organization Additional Information, you must:


In Oracle India Localization, navigate to the India Local Inventory window as follows: Navigate to India Local Inventory, Organization Additional Information. Query for the Organization Location fro which you wish to make the setup. Click on Tax Calendar and then on Excise Generation.

Follow the information in the table in completing the setup.

Click on the Tax Calendar button on the Organization Tax Information window Click on the Excise Generation on the Tax Calendar to open the Excise Generation India

Localization Window. Create a new record for the Excise Invoice serial number to be generated for the

Organization, location, and Transaction Type and Order/Invoice Type combination.

This Excise Invoice Serial will be generated when Shipment & RTV is made from a Particular

Inventory Organization Location.

In Oracle India Localization, navigate to the Excise Generation India Localization window asfollows:

SetupOrganizationAdditional InformationTax CalendarExcise Generation


53/96



The following information can be entered by user to generate multiple Excise Invoice Serialnumbers based Order /Invoice Type/Excise Register codes.The screen layout and its feature are described below for ready reference.


54/96



FieldDescription


Transaction

Type

(Required) PICK

HELP

Choose one of the options from the LOV. The options would be

Order:

On selecting this option in combination with the OrderType, the Excise Invoice number generated on shippingthe delivery created with this Order Type would be basedon the definition specified for this record.

Return To Vendor:The document sequence defined here would beapplicable to excise invoice numbers generated for aReturn to Vendor Transaction.

Domestic:The document sequence defined here would be

applicable to excise invoice numbers generated for aDomestic Transaction.This would be applicable to all the Order/Invoice Typesthat areDefine Bond Register: Chosen for the Organization/Location with the Register Type as Domestic with ExciseANDThis Order Type is not chosen in the Excise creation IndiaLocalization screen for the Organization, Location.

Invoice:On selecting this option in combination with the InvoiceType, the Excise Invoice number generated on saving anAR Invoice would be based on the definition specified for

this record.

Export:The document sequence defined here would beapplicable to excise invoice numbers generated for aExport Transaction.This would be applicable to all the Order/Invoice Typesthat areDefine Bond Register: Chosen for the Organization/Location with the Register Type as Export with Exciseand this Order Type is not chosen in the Excise creationIndia Localization screen for the Organization, Location.

Order/InvoiceType

(Required) PICKHELP

The relevant Order Type/Invoice type related for ainventory organization Location have to be selected herefrom the LOV.

Register Code (Required) PICK

HELPThe appropriate Register Code for a Order/Invoi