India Loc Setups

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Oracle India Localization

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

Oracle India Localization - Users Reference Manual 13


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Setup ChecklistThe following table lists setup steps and a reference to their location within the Application. After youlog 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 CategoriesStep 11 Optional Define Manual BOM

Oracle India Purchasing

Step 12 Required Define Supplier Additional Information

Oracle India Payables

Step 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



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Setup Steps

Step 1 Define Organization Additional Information

You must define the structure of your Inventory organizations and locations, which would be reporting to the 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 theorganization registration details with Excise, Customs, Sales Tax and TDS authorities.

This information is available in additional organization information are the basic data for all India Localization activities and accounting. The Organization and Locations defined through CommonApplication would be available for setup. While creating the additional organization information, it ismandatory 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 forconsolidation of excise registers at Master organization level.

SeeAlso: Defining Organization Additional Information, India Local Inventory ChapterStep 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 enterExcise 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 tobe 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 theexcise liability 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. Ifthis field is checked, then the PLA, when preferred, would be hit, even-though, the duty liability ishigher then the available balance in PLA.

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



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Step 4 Define Tax Calendar

Localization taxes would be calculated only when the transaction falls within the active year. You cankeep 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 ChapterStep 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 andRegister Type. You can define an alpha/numeric value which would be prefixed to the number seriesgenerated for each excise invoice. The setup would be restricted to the Order/Invoice Types for whichit 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 indefine Bond register where the user needs to associate an Order type for all transactions OrderManagement 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 (likedomestic with excise, Bond, Export with excise etc.). Only after associating an Ordertype/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 ChapterStep 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 subinventories that are identified as bonded for manufacturing organizations and as traded for trading organizations.

SeeAlso: Defining Sub Inventory Locations, India Local Inventory Chapter

Step 7 Define Item Localization Information

The recording, recoverability and reporting of localization taxes would depend on the IndiaLocalization related information setup for the item. These values have to be entered in the IndiaLocalization 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 theExcise 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. Theoption chosen 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.



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SeeAlso: Item Definition, India Local Inventory Chapter

Step 8 Define Tax Codes

The Tax Definition is a localization feature to define taxes that are applicable to the transactionscreated 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 otherfields in this form. You can specify the Tax Rate, surcharge, recoverability, rounding rule, expenseaccount 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.

SeeAlso: Defining Tax Codes, India Local Inventory Chapter

Step 9 Define Tax Categories

If you can identify your purchase and sales transactions into clear categories, for which a similar setof taxes with similar precedence and calculation are applicable, then you can group such taxes into aTax 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 fallingin this 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, manuallyadd new tax lines and can change, delete, change precedence for the defaulted lines.

SeeAlso: Defining Tax Categories, India Local Inventory Chapter

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.

SeeAlso: Defining Item Category List, India Local Inventory Chapter

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



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The BOM setup can be made only for a finished goods Inventory item. SeeAlso: Defining Manual BOM, India Local Inventory Chapter

Step 12 Define Supplier Additional Information

Before you start using the Supplier/ supplier site for a localization transaction, it would be a necessaryfor 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 forthe 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 theAddition supplier information defined for a Supplier Site from one organization cannot be accessedfrom any other organization.

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 enterhis 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 fortransactions within the state, outside the state and transactions from un-registered dealers.

SeeAlso: Defining Supplier Additional Information, India Local Purchasing Chapter

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.SeeAlso: Defining Organization TDS Information, India Local Payables Chapter

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. Ondoing 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

SeeAlso: Defining Income Tax Authority, India Local Payables Chapter

Step 15 Define TDS Sections

India Localization comes with pre-seeded, default TDS Sections in the database. However, youshould 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



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Lookup Codes and add a new record, with the relevant descriptions and the effective period. As thesame 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.

SeeAlso: Defining TDS Sections, India Local Payables Chapter

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.

SeeAlso: Defining TDS Tax Codes, India Local Payables Chapter

Step 17 Define TDS Year

Before you start using the TDS functionality in an Organization, you will have to setup TDS YearInformation. This year would be the Income Tax Reporting Year and is independent of the Tax

Calendar defined 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.

SeeAlso: Defining TDS Year, India Local Payables Chapter

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 candefine the TDS Details for the Supplier NULL Site. The same details would be applicable for alltransactions created any of the Sites.

Where the TDS Details are different for the Sites, you can define the Registration Details at theSupplier 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-ApprovedTDS Invoice & Credit Memo Field.

SeeAlso: Defining Supplier Additional Information, Local Payables Chapter



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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 doingthis, when defining a Bill of Entry transaction, the Supplier name would be listed in the CustomsAuthority field LOV on the Bill of Entry India Localization screen.

SeeAlso: Defining Customs Authority, India Local Payables Chapter

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 of Agent Code field of the Bill of Entry screen.

SeeAlso: Defining BOE Agent, India Local Payables Chapter

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 PLAPayment Transaction, you should have defined an Excise Authority. You would create a Supplierand 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.

SeeAlso: Defining Excise Authority, India Local Payables Chapter

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 andtransaction sources.

Excise transactions are classified as:

Domestic with Excise

Domestic without Excise

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 Receivablemodule. If the Organization/location is of manufacturing type, excise related transactions formanufacturing set up need to be associated. Like wise, if the organization/location is trading excise related transactions for trading need to be associated.



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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.

SeeAlso: Define Bond Registers, India Local Order management Chapter

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 listthat 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.

SeeAlso: Define Customer Additional Information, India Local Order management Chapter



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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 such transactions and their impact of Excise Registers:

Impact on Excise Registers for Item Types

Transaction Type

RMIN CCIN FGIN CGIN OTIN

Miscellaneous Receipt RG Update RG 23A Part 1 RG 1 RG 1 RG 23C Part 1 NA

First RG23A Part1, then RG

Miscellaneous Issue RG Update RG 23A Part 1 1 RG 1 RG 23C Part 1 NA

RG 23ACycle Count Adjustment. RG 23A Part 1 Part 1 RG 1 NA NA

RG 23APhysical Inventory Adjustment. RG 23A Part 1 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 Part 1 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



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Setting Up Organization Information in India Localization-Inventory

This section describes the setup procedures for India Localization Inventory. You must enter thesetup information for your company before you using Inventory, Purchasing, Order Management and Receivables modules of India Localization.



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Defining Organization Additional Information

This form provides with additional information regarding inventory organization. The informationavailable 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 thisform 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 at null location level and another with location.

If multiple organizations are defined within the same excise registered premises, user can opt toidentify 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 organizationbased on ECC code. In such type of setup, the Master organization will be the organization at whichall excise registers should be generated only from the Master organization.

NoteThe 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 Organization Additional Information



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

Field Description

Organization Name/Location

Master Organization information BlockMaster Organization flag

Type Action Description

(Required) EDIT HELP The user defined inventoryPICK organization name needs to be

picked up here from LOV for whichthe additional information is going to

be incorporated. The user from LOVwill select the location for a

particular organization.

This check box decides whether theorganization is a master

organization or a child organization.If it is a child organization, this

needs to be attached to the Masterorganization. Consolidated Exciseregisters can be generated from theMaster organization.

Note: In the Master Org. Information block you have to specify whether the organization represents an Excise licensed Organization or a child organization. If you select a child organization, you needto specify which is the Excise licensed organization under which the child organization belongs. For amaster organization and location combination you need to enable the Master Organization flag. This should be done for the Organization with Location specified. The ECC number defined for the materorganization would default to all child organizations when master organization is selected.

Excise Block The following information arerelated to Excise Registration for a



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Defining Accounting Information for Organization

You should ensure that you specify appropriate general ledger accounts in the Accounts Information region. This information would be used to account for Localization transactions. Its mandatory 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 Locations

Organization Additional Information

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

Setup Organization Additional Organization Information Accounts Information


Field Description Type Action DescriptionAccounts Information Block These accounting information are

necessary for an inventoryorganization through which all the



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Defining Organization ParametersOrganization Parameters check whether a specific transaction is carried out within the stipulated time span specified by relevant tax laws. The user can enter the data in order to have control over the transaction from the respective tax point of view.

Field Description Type Action DescriptionOSP Return days (Optional) Enter the number of days within

which the OSP goods should comeback to the Inventory Organizationunder 57F(4). As per the ExciseRule it is 180 days.

OSP Excise percentage (Optional ) Enter the rate of Excise duty

charged for a OSP transaction.

Since there is no needs to pay dutywhile sending goods while sendinggoods for sub contractedoperations, the user needs to inputvalue zero in this field as dutyneeds not be paid for such

removals. If any other value isgiven in this fields, appropriate dutywill get calculated whenever hecuts a 57 F 4 Challan.

Note:

Since no duty needs to be paidwhile sending goods for subcontracting, user needs to ensurethat the value against this field is always 0 percentage.

Days allowed for 173(L) (Optional ) Enter the number of days allowed

for a transaction under 173(L) ofExcise Act in the case of SalesReturn.

Sales tax return days (Optional ) Enter the number of days within

which the sales return goodsshould reach to the Inventory

Organization from the date of Saleas per Sales Tax Act. As per the Sales Tax Act, it is 180 days.

Excise Return days (Optional ) Enter the number of days withinwhich the sales return goods

should reach to the Inventory

Organization from the date ofdelivery as per Central Excise Act.

CENVAT Reversal(%) (Optional ) This value is the default percentagewhich will be considered by the

system whenever it performs a dutydebit under Rule 57 CC of theCentral Excise Rules. You shouldenter the CENVAT recoverypercentage in this field. Forexample, currently, the percentageof CENVAT recovered is 8% on all



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excise exempted transaction. Thus,8 should be entered into this field.

Defining Register Preferences This parameter decides thepreference of hitting the duty

payment register while performinga ship confirm transaction in OrderManagement or a Transaction

Localized in the AR Module. Youare not permitted to debit duty fromdifferent duty paying registers for asingle transaction.

If the balance available in each of the CENVAT Registers and PLA is less than Excise Duty liability arising from the ship confirms transaction, then the Interface Trip Stop request completes with errorand the shipment transaction remains incomplete. In a scenario, where you have opted for a fortnightly settlement, you can ship with inadequate CENVAT credit. To meet such situations you canenable 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 of setup, the CENVAT registers will have entries only for the credit availed and the adjustments made whilecomputing the exact excise liability (fund transfer from CENVAT register to PLA register).

Note:1. You should take care to get necessary concurrence from the local excise authorities

before rolling down with the new system.2. On RTV, the registers that would be updated would be based on the preferences.



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Defining Tax CalendarAs part of Localization setup you need to define the Tax calendar. Excise Registers would be updatedonly 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:


Define Locations


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

Setup Organization Additional Information Tax Calendar

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

Field Description Type ActionOrganization Name /Location (Displayed)

DescriptionThe InventoryOrganization/Location will bedisplayed from the OrganizationTax Information.

Note: The Tax calendar shouldbe defined only at Organizationlevel with null location. This

calendar will be defaulted foreach location falling under theOrganization. The tax period inLocalization is meant for setting



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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 of

excise invoices, one for domestic clearances and the other for export clearances and no prefixes forthe numbers generated can be maintained.

Prerequisites

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


Define Locations


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

This Excise Invoice Serial will be generated when Shipment & RTV is made from a ParticularInventory Organization Location.

In Oracle India Localization, navigate to the Excise Generation India Localization window as follows: Setup Organization Additional Information Tax Calendar Excise Generation



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Defining Sub Inventory Locations

Before you start using India Localization Inventory, the sub-inventories have to be associated with Organization/Location combination. Excise related transactions and records would be updated onlyfor those sub inventories, which are identified as bonded for manufacturing organizations and as Trading for trading organizations. By considering the transactions of a sub inventory, the check box for bonded/traded needs to be enabled.NoteIt is mandatory to complete this setup, irrespective of the fact that the Subinventory is not bonded. You can leave the Bonded check blank, if the Subinventory is non -bonded.

Prerequisites

Before you enter the Sub inventory Locations, you must:


Define Locations

Organization Additional Information Define Sub inventories

In Oracle India Localization, navigate to the Assign Subinventories to Location India Localization window as follows:

Setup Organization SubInventory Locations

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

Field Description Type Action

Header Level

Organization Name/Location (Required) PICK

HELP

Description

inventory organizations nameand location to be selected bythe user from the LOV.



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Line LevelSub-Inventory (Required) PICK You can select the Sub-

HELP inventory name from the LOV

Description (Displayed) The Description for the selectedSub-Inventory will be displayed

here.

Bonded (Flag) (Optional) CHECK You need to specify whether aBOX Sub inventory belonging to the

specified organization andlocation is Excise Bonded orDuty Paid. When this Flag isenabled the Sub inventory isconsidered as Bonded.

Trading (Flag) (Optional ) CHECK You need to specify whether aBOX Sub-inventory belonging to the

specified organization and

location is Trading. When thisFlag is enabled the Sub-inventory is considered asTrading. If the Organization

location has a Manufacturingsetup, this field is disabled.

Note: The above Sub Inventory setup is mandatory in nature & missing the same will result in shipping getting stopped.



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Defining Item Information

You need to associate Localization related information of an item before you start using the item forIndia Localization transactions. Choose the relevant values in the attributes of India Items context ofItems DFF in Items Mater window. For this user needs to select India Items as the context value in the flex fields provided in the item master.

Prerequisites

Before you enter the Item Information, you must:


Define Items

In Oracle India Localization, navigate to the Organization Item window as follows: Setup Master Items

In India Localization, additional attributes have been added to classify an item as per following nature. The following are the added DFF and its usage:


Field Description Type Action Description

Context User need to select IndiaLocalization from the pick list

Excise Flag (Required) PICK EDIT The options are YES & NO. .HELP Any dispatch transaction

verifies the excise status from the excise flag attribute. Theexcise status is not updateableat the transaction level. If thisflag is set to 'No', no records willbe entered in the exciseregisters normally for Issue type



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Item class code Impact

RMIN All inputs/raw materials/consumables used in or in relation to the

manufacture needs to be classified under this category. All transactions tothe Bonded sub inventory with this item class will have an impact on the records/reports generated for CENVAT credit on raw materials. (RG 23 A registers will be effected)

RMEX All inputs/raw materials/consumables used in or in relation to the

manufacture needs to be classified under this category. All transactions tothe Bonded sub inventory with this item class will have an impact on the records/reports generated for CENVAT credit on raw materials. (RG 23 A registers will be effected)

CGIN All capital goods (as per excise definition) used in or in relation to the

manufacture needs to be classified under this category. All transactions tothe Bonded sub inventory with this item class will have an impact on the records/reports generated for CENVAT credit on capital goods. (RG 23 C registers will be effected)

CGEX All capital goods (as per excise definition) used in or in relation to themanufacture needs to be classified under this category. All transactions tothe Bonded sub inventory with this item class will have an impact on the records/reports generated for CENVAT credit on capital goods. (RG 23 C registers will be effected)

CCIN All intermediate goods need to be grouped under this category. Based on

the transaction, records will get generated in the RG-1 register/CENVATregisters.

CCEX All intermediate goods need to be grouped under this category. Based onthe transaction, records will get generated in the RG-1 register/CENVATregisters

FGIN All finished goods manufactured needs to be grouped under this category.

Goods attached to this category will be posted to RG-1 register at the timeof shipment/production.

FGEX All finished goods manufactured needs to be grouped under this category.

Goods attached to this category will be posted to RG-1 register at the timeof shipment/production.

OTIN Items falling under this category will not be considered for any excise

related transactions even though the transactions are from bonded sub inventory.

OTEX Items falling under this category not considered for any excise relatedtransactions even though the transactions are from bonded sub

inventory173 G Declaration filed by the Organization, the user needs to associate the excise Tariff to each excisable item.

Description of Item Class Code and Impact




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Setting Up Tax Information

Defining Tax Names/CodesYou need to define Taxes before you start using India Localization. Tax codes would be the basis forall localization tax calculations. You should define all taxes applicable to your organization.

Tax codes cannot be updated once saved. Thus, you should adopt adequate caution while defining the taxes. You can only disable the tax by entering the End Date.

Prerequisites

Before you enter the Tax Codes, you must:


Define Locations


Define Form Names

Define TDS Sections

Define Suppliers and Supplier Sites Define Tax Authorities

In Oracle India Localization, navigate to the Tax Definition India Localization window as follows: Setup Tax Taxes

The taxes are relevant to a particular operating unit in case of a multi-org setup. Once the screen isselected from the navigator menu, you have to select the organization from the list, so that the taxes can be related to the corresponding operating unit.

The screen layout and its feature of the above form are given here for ready reference.



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Tax Name (Required) Enter a short tax name/tax codein this field. It is recommend thatyou follow a naming conventionfor defining taxes so that the taxname defines the usage of tax.For example, CST-4%-C: thismeans the tax type is of type

Central Sales Tax, Rate is 4%,and requires C-Form

Type (Required) EDIT HELP Select type of tax from list of

PICK values. This will indicate how totreat the tax at transaction level.

The options available are:

Excise - Basic BED

Excise - Additional AEDExcise - Special SED

Customs Duty Basic Customs Duty/SADCustoms Duty - Additional CVD

Central Sales Tax CSTSales Tax LST

Octroi OctroiInsurance Insurance

Freight FreightService Tax Service Tax

Tax Deduction at Source TDSAny Other Tax Other taxes/DiscountsModvat Recovery - Modvat Reversal Debit under Rule 6 of CENVAT Credit Rules

VAT Value Added Tax

Tax type determines the type of treatment/procedure that needs to be initiated forcalculating/updating/recording tax records. You should ensure that you associate tax codes with

appropriate Tax Types, in tune with your organizations requirements. For example, while defining a tax code/name for sales tax you should be using either CST or Sales tax as Tax Type. You should take adequate care in selecting tax type.

Note: Apart from the normal tax types like excise, Customs, Sales tax etc which are widely used in the industry, Localization provides for additional tax types like Insurance, freight, any other tax and Modvat reversal.

1. Modvat Recovery - Modvat Reversal : Modvat reversal needs to be mappedas per the requirements under Rule 57 CC of the Central Excise Rules.

2. Freight, Insurance and Any Other Tax: Can be used for accounting for anyexpense incidental to the Purchase transaction. Any tax (cost component)defined under these categories would be taken into consideration for the calculation item cost, subject to the condition that the Credit Percentage is notspecified.

3. Third Party Taxes: In the procure to pay cycle, the you can make use of the

functionality of III Party taxes. This can be setup by specifying the vendor name



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Defining Tax Categories

This is a mandatory setup to enable Tax defaultation and automatic calculation at the transaction linelevel. Tax Categories would be basis on which the taxes that would be applicable to the transaction and the Tax Base Amount calculation would be determined.

You have an option to associate an Item Class to the Tax category. This Tax category would be applicable to all Items falling under this class.

Tax category is a group of relevant tax codes with precedence applicable to them.

Prerequisites

Before you enter the Tax Categories, you must:


Define Locations

Assign Organization to Locations


In Oracle India Localization, navigate to the tax Category India Localization window as follows: Setup Tax Tax Categories

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



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the I st tax.

In this example line amount is Rs. 1000/-. The taxes mentioned below are applicable.

Tax Calucation

Excise duty 16% to be worked on the line amount

Sales tax 4% to be worked on line price and excise dutyFreight Rs.100 Adhoc tax not depending on other taxes

Insurance 2% to be worked on the line amount

Tax name Tax Calculation

Excise duty 16% to be worked on the line amount/Assessable value

Sales tax 4% to be worked on line price and excise duty

Freight - Adhoc Adhoc amount - no precedence needs to be attached

Insurance 2% to be worked on the line amount



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Defining Item Category List

Item Category List associates the tax Category to an inventory item in an Organization. The user can add many items in a list and select relevant tax category for them. There can be many such item category lists defined and associated to the Vendor/Customer sites

If the item category is attached to the Additional customer/supplier information, the item category will get defaulted whenever a transaction is done with the customer/supplier.

Use this form to associate inventory items to Tax Categories.

Prerequisites

Before you enter the Item Category List, you must:


Define Locations


Define Tax Categories

Define Items

In Oracle India Localization, navigate to the Item Category List India Localization window as follows: Setup Tax Item Categories

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


Header level

Name (Required) ENTER The user has to specify the

unique Item Category List name.



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Defining Manual BOM

The objective of this screen is to facilitate duty draw back processing and reporting. If you are not using localization for duty draw back processing, this feature can be ignored.

Data in this form can be used for OSP related transactions and draw back related a report if a

standard BOM is not defined.

This form will be exclusively used to design Manual Bill Of Material for a finished goods Inventoryitem.

Use This Window to enter Bill of Material for a Finished Item, if you are not using Oracle BOM. You can enter different Bill of material for same item, effective in different Dates ranges. This BOM definition will be used for Duty Drawback Processing and Outside Processing purpose.

Prerequisites

Before you enter the Manual BOM, you must:


Define Locations

Define Routings

Define Operations

Define Departments

In Oracle India Localization, navigate to the Manual Bills of Materials India Localization window as follows:

Setup Items Define Manual BOM



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Transactions

The Miscellaneous transaction form has been customized to accommodate the RG Register entries through a separate transaction type.

In Oracle India Localization, navigate to the Miscellaneous Transaction India Localization window as

follows:

Transactions Miscellaneous Transaction

Additional types of 'Miscellaneous Issue (RG update) and 'Miscellaneous Receipt (RG update)' are introduced under India Localization.

THERE IS NO CHANGE IN TRANSACTION LINES WINDOW.

The only difference between Miscellaneous Issue/receipt (RG Update) and miscellaneous

issue/receipt is that the respective excise inventory registers are updated when the input material is issued from stores to the production or finished goods / input material is received back into storesfrom production.



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RG-I Register Entry

This is a view / entry form that can be used to view/enter the Manual RG-I transaction. RG -I Registeris the daily stock account for all excisable products. It displays on query all the transactions that have an entry in the RG-I register. Each inventory organization will be considered, as an Excise Unit andthe user need to specify the Organization Name and Location both for querying & for making manualentries into the register. Querying can be done based on certain fields on the Entry Block and also Transaction Details block.

In Oracle India Localization, navigate to the RG-1 Entry India Localization window as follows: Transactions RG Registers RG1 Register Entry

The entire screen of RG-I Register and its feature are given here for your ready reference. Thefollowing fields are to be entered by the user for manual Entry. Depends upon the user requirement,he can specify any one of the following fields to view/enter a manual entry in the register.


Organization (Required) EDIT The user needs to specifyHELP the Inventory Organization

PICK name from LOV for which

the manual excise entry isgoing to be accounted. Theuser needs to specify aInventory Organization forwhich he wants to view theRG-I Register balance andinformation.

Location (Required) EDIT The user needs to specify

HELP the Location of an InventoryPICK Organization from LOV for

which manual excise entry is

going to be accounted. The



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RG23 Register Entry

RG23A Register

Adjustments/Manual entries in the CENVAT on inputs can be done through this screen. All excisablegoods with item type RMIN and RMEX will be accounted in this register and the credits availed on inputs will be accounted in this register

NoteThis feature can also be used in uploading the opening balances for a newly created Organization.

RG23C Register

Adjustments/Manual entries in the CENVAT on capital goods can be done through this screen. All excisable goods with item type CGIN and CGEX will be accounted in this register and the credits availed on capital goods will be accounted in this register

This RG23 Manual Entry form can be used for both view/enter RG23A & C Part I&II entries. Registers RG23 Register Entry

The user can open RG-23A or RG-23C Register can be selected using the LOV at the top-left cornerof the form. The screen layout and its feature are described below for ready reference.


Organization (Required) EDIT The user need to specify theHELP Inventory Organization namePICK from LOV in which RG23

register entries are going to beaccounted. The user needs to



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Apply Time Extension

Apply Time Extensions (India Localization) screen can be invoked to apply for additional time. In the case of OSP from inventory or Sales Returns Transactions if the vendor wants some more time means, he can invoke the time extensions screen & find the appropriate information by entering the transaction type or the start & end date limits or by entering both. He can apply for the time extension, he need. Then the due date is automatically defaulted. It can either be applied or rejected by theappropriate authority. In the case of rejection, the due date is cleared.

This screen can also be used for recording the additional time granted by the excise authorities toreceive/return goods under Rule 173 H and 173 L of the Central Excise Rules.

As per the changes announced in Union Budget 2000-2001, there is no need to debitduty while clearing goods for sub contracting operations under Rule 57 F (4). The requirement for taking time extensions to bring the goods sent under 57 F (4) challanalso stands withdrawn.

As per the current provisions of the Law, duty need to be debited only if the goodssent for sub contracting operations are not received back within 180 days. Later if thegoods are received back, the duty debited can be availed. This requirement can bemapped through Manual RG 23 Entries.

Though the requirement for recording the time extensions granted by the Excise

authorities does not exist, the form is maintained in the current release by consideringsimilar future requirements.

Transaction Apply time Extension


Field DescriptionTrans Name

Vendor/Customer NameUser Ref. No.

Type Ac t ion Description

(Required) ENTER The user needs to pick upeither OSP Transaction orSales return.

(Required) EDIT The user need to enter valid

HELPPICK customer/vendor name.(Optional) EDIT Reference No. can be ente



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HELPPICK here. The user need to entervalid customer/vendor name.

After querying the OSP or Sales transaction, the user can enter extended time limit for a transaction and create a record then the due date gets extended by using the below mentioned form.

Transactions Apply time Extension

Trans Name, Vendor Name, User Ref No., Trans Date, Original Due Date Extended Due date isdisplayed as per referenced transaction.


Sl. No. (Required) Sl. No. is a system generatedserial no.

Ext Days (Required) You can enter number of day ofExtension.

Status (Required) PICK Select Status from drop list. The

Options available are Applied,Approved and Rejected. Initiallyit will be applied. It can bechanged to approved orrejected.

Due Date (Displayed) displays only field giving the due

date after applying the timeextension.

Master Organization RG Consolidation



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If multiple organizations are defined within the same excise registered premises, user can opt toidentify one Organization & Location combination as "Master Organization" and all other

organizations needs to be treated as child organizations and should have the reference of the masterorganization based on ECC code. In such type of setup, the Master organization will be theorganization at which all excise registers should be generated.

The master child relationship among the organization and location are used only to generateconsolidated 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.

Steps for running the Master Organization RG Consolidation :

Ensure that proper setup is done to establish the relationship between the Master and ChildOrganizations. Please note that the Master Organization flag should be ticked in theOrganization-Location record of the Master Organization.

Organization Location defined as Master Organization should be a Dummy Organization only used for Excise Reporting. No transactions should be done in the Master OrganizationLocation directly.

Master Organization Consolidation request set could be run at periodic intervals depending on the reporting requirements.

Master Org RG Entries Request Set

Use the navigation Inventory > Reports > All > Request Set >Master Org RG Entries to run the request set. This request set consists of 4 requests, one each for consolidation RG23 A, C , PLA and RG1 registers. Parameters for each of the requests are same :

Organization (Required) PICK HELPName of the Master Organization is to be given in this parameter.

Location (Required) PICK HELP

Name of the Master Organization Location is to be given in this parameter



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After completion of the Request Set, the consolidated RG entries and balances shall be available atthe Master Organization Location. This request set is only a program to copy and consolidate thechild organization records. Normal RG reports shall have to be used for viewing and printing the RG reports for the Master Organization. The entries for individual child organizations shall still be available and if required reports could be obtained for child organizations as well.



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View Register Balance

The user can view the Excise Registers RG23A Part-II, RG23C Part-II and PLA balances through thisform.

Transactions RG Registers View Register Balance

After specifying the Inventory Organization Name, Location and currency the user will get Excise Register balances in the Balances Block.

RG23A Part-II balance represents the balance available on Account of credit availed on Inputs.

RG23C Part-II balance represents the balance available on account of credits availed on

capital goods.

PLA Register represents the balance available in PLA Register.



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View Item Definition

This view form has been designed to find the relevant Tax information for an Item. Item definitionprovides the Localization information for an item with respect to Tax applicability for an Inventory Organization Location.

Items Item Definition

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


Organization Scope (Required) EDIT User can select OrganizationHELPPICK scope which to enter Items

definition. The Quickpick for

Organization scope are Singleor Single with Master or AllOrganizations.

Organization (Optionally EDIT When the user has Single or

Required) HELPPICK Single with MasterOrganization Scope then heneed to pickup the Inventory

Organization from the LOV.

Item/Description (Required) EDIT Select the item from LOV for

HELPPICK which you want to view theItem definition.

Item Information India

Localization form is invoked byopening the Localization InfoButton and the information aredefaulted from the Master Item regarding the Excise Flag,Modvat Flag, Item class, item folio and item tariff.

India Loc Setups

Documents

Transcript of India Loc Setups