Oracle IL Implementation Guide

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Oracle India Localization

Implementation Guide

Release 11i

March 2004


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Oracle India Localization Implementation Guide, Release 11i

Copyright 2003, Oracle Corporation. All rights reserved.Primary Author: Vikram Prabakar LContributors: Narasimha Pai, Srinivas Gadde, Pavan Raparla, Yadunath Vyloor, Sriram Sumaithangi,Vijay Shankar Babu, Aparajita Das, Nagaraj Rao, Arun Iyer, Anil Vallabhajosyula, Srinath Raghu,R.SivaramakrishnanThe Programs (which include both the software and documentation) contain proprietary informationof Oracle Corporation; they are provided under a license agreement containing restrictions on useand disclosure and are also protected by copyright, patent, and other intellectual and industrialproperty laws. Reverse engineering, disassembly, or decompilation of the Programs is prohibited.Program Documentation is licensed for use solely to support the deployment of the Programs and notfor any other purpose.The information contained in this document is subject to change without notice. If you find anyproblems in the documentation, please report them to us in writing. Oracle Corporation does notwarrant that this document is error free. Except as may be expressly permitted in your licenseagreement for these Programs, no part of these Programs may be reproduced or transmitted in anyform or by any means, electronic or mechanical, for any purpose, without the express writtenpermission of Oracle Corporation.If the Programs are delivered to the U.S. Government or anyone licensing or using the programs on

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Oracle is a registered trademark of Oracle Corporation. Other names may be trademarks of theirrespective owners.


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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 this

publication. 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]

FAX: +91 (40) 23111711Oracle India LocalizationOracle Software Pvt Limited5thFloor, 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.

Oracle India Localization Implementaion Guide iii


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Contents

Preface .................................................................................................................. viiPlanning Your Implementation..........................................................................................................8Overview of Setting Up Oracle India Localization...........................................................................10Setup Flowchart...............................................................................................................................11

Setup Checklist................................................................................................................................13How to Use This Guide ...................................................................................................................14

Setup Steps .....................................................................................................................................15

About Vision India Limited.................................................................................. 24Setting Up Vision India Ltd.................................................................................. 32

Setting Up Organization Additional Information ..............................................................................33Step 1 Defining Organization Additional Information ......................................................................34Step 2 Trading Organization ...........................................................................................................38Step 3 Defining Organization Accounting Information ....................................................................41Step 4 Define Tax Calendar ............................................................................................................47Step 5 Excise Invoice Generation Organization Additional Information ......................................49Step 6 Defining Sub Inventory Locations ........................................................................................51Step 7 Defining Item Information.....................................................................................................52Step 8 Defining Tax Names/Codes.................................................................................................56

Step 9 Defining Tax Categories ......................................................................................................64Step 10 Defining Item Category List................................................................................................68Step 11 Defining Manual BOM........................................................................................................70Step 12 Defining Supplier Additional Information............................................................................72Step 13 Defining Organization Income Tax Registration Information.............................................74Step 14 Defining Income Tax Authority...........................................................................................77Step 15 Defining TDS Sections.......................................................................................................78Step 16 Defining TDS Taxes...........................................................................................................79Step 17 Defining TDS Year .............................................................................................................81Step 18 Defining Supplier Additional InformationTDS Details ......................................................82Step 19 Defining Customs Authority ...............................................................................................84Step 20 Defining BOE Agent...........................................................................................................85

Step 21 Defining Excise Authority...................................................................................................86Step 22 Defining Bond Register......................................................................................................87

Step 23 Defining Assessable Price List ..........................................................................................89Step 24 Defining Customer Additional Information .........................................................................90Descriptive Flex fields used in India Localization............................................................................92

India Local Purchasing Frequently Asked Questions.................................... 96Purchase Orders .............................................................................................................................97Purchase Orders - errors.................................................................................................................99Quotations .....................................................................................................................................100Receipts.........................................................................................................................................101 Claim CENVAT on Receipts..........................................................................................................104Delivery..........................................................................................................................................106 Return............................................................................................................................................107

Returns - Errors.............................................................................................................................109Accounting.....................................................................................................................................110

Period End.....................................................................................................................................111

India Local Inventory Frequently Asked Questions ..................................... 113Inventory Transactions ..................................................................................................................114Setups ...........................................................................................................................................115Work In Process ............................................................................................................................119

India Local Payables Frequently Asked Questions...................................... 120India Local Payables Setup...........................................................................................................121


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Tax Deduction At Source Calculation, Accounting and Reporting.............................................124Reports ..........................................................................................................................................128PO AP Localization Tax Flow.....................................................................................................130Sales Tax Concessional Forms.....................................................................................................132Bill of Entry ....................................................................................................................................133Excise Payments...........................................................................................................................134

India Local Order Management Frequently Asked Questions..................... 135

Sales Orders..................................................................................................................................136Sales Orders Errors....................................................................................................................138Ship Confirm..................................................................................................................................141Ship Confirm - Errors.....................................................................................................................142Letter of Credit...............................................................................................................................144Trading Match Receipts .............................................................................................................145Excise Exemption Transactions ....................................................................................................147Excise Invoice Generation.............................................................................................................148Returns ..........................................................................................................................................153Returns - Errors.............................................................................................................................155

India Local Receivables Frequently Asked Questions ................................ 156Taxes in Receivables ....................................................................................................................157

Taxes in Receivables - Errors .......................................................................................................160

Supplementary Transactions.........................................................................................................161

Supplementary Transactions - Errors ...........................................................................................163TDS in Receivables.......................................................................................................................164TDS In Receivables - Errors..........................................................................................................165ST Form Tracking..........................................................................................................................167ST Forms Tracking - Errors...........................................................................................................168MANUAL TRANSACTION.............................................................................................................169Manual Transactions - Errors........................................................................................................170Reports ..........................................................................................................................................171Other AR Issues ............................................................................................................................172Other AR Issues - Errors ...............................................................................................................173

India Local Fixed Assets Frequently Asked Questions............................... 174

Depreciation based on Block of Assets.........................................................................................175

Interpreting PO-AP Diagnostic Scripts............................................................. 177Interpreting OM-AR Diagnostic Scripts............................................................ 180

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Preface

This document provides you with information that will help you in implementing Oracle IndiaLocalization for Oracle Discrete Manufacturing Implementations.

The document is divided into four major sections. The first section provides an overview on

implementing India Localization.

The second section provides an overview of Vision India Limited, a fictitious company with diverseproduct lines manufactured at multiple locations. Payments of this organization are controlled throughcentralized regional offices and the Sales and Logistics are controlled through Excise registeredwarehouses.

The third section provides you with detailed steps to complete each setup for Vision India Limited. Ifyou follow Vision Indias implementation, you will have a system with India Localization that meetsVision Indias requirements, which may differ from your own. To design your own implementationplan, read thorough the examples and look for requirements that are similar to or different from yourproject needs.

The last section provides answers to Frequently Asked Questions in each application area supportedby India Localization. These should answer your most common queries that might arise as youimplement and use India Localization. Whenever you encounter errors while creating setups andtransactions through India Localization, we recommend you to browse through the relevant sections.You might find your answers here. Also, this section provides interpretation of commonly used IndiaLocalization diagnostics scripts.


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Planning Your ImplementationIndia Localization is completely integrated with Base Application and derives the base structure fromthe Base Application Setup. Hence, it is important that you have a thorough understanding of IndiaLocalization Setups and your organization structure before starting with the Base Application Setup.

As you plan your implementation of Oracle India Localization, we recommend that you consider theimplementation issues discussed in this section. Implementing India Localization Tax Solution iscritical for the success of Oracle Applications Implementation.

If your implementation also includes process-manufacturing units then, we recommend you to refer tothe India Localization OPM User Reference Manual for the mapping tax requirements specific tothese units.

Your Implementation TeamYour implementation team creates and executes the implementation plan and makes very criticaldecisions that shall have an impact on the entire implementation, including India Localization.Especially, when irrevocable decisions in mapping your business to Oracle entities such as legalentity, operating units and inventory organizations should consider the implications on Tax

Accounting & Reporting needs along with the organization Accounting and reporting needs.

Hence, the team should have a thorough understanding of the Central Excise & Customs, Sales Tax,Tax Deduction at Source and Service Tax. The team should also have a thorough understanding ofthe features provided by India Localization.

We recommend you to appoint one member of your implementation team to head the IndiaLocalization implementation, facilitate resolution of issues, and act as liaison between yourorganization and Oracle Customer Support.

Implementation Decisions

Review your business procedures

Your implementation team should reexamine all your business procedures in light of the functionalityin Oracle India Localization. The organization structure, accounting practices, classification assetsand expenditures, and Tax reporting needs are just a few issues that will influence many decisionsyou make about your implementation of Oracle India Localization.

Preparing your implementation data

Your implementation team must determine how to configure the features in Oracle India Localization.As you determine your implementation data, you must keep in mind that India Localization does notprovide any interfaces for data migration. You will have to ensure that you collect all Tax relatedinformation of the Organizations, Parties and Items before you start setting up.

You need to consider the Descriptive Flex Fields reserved for India Localization while you plan to anyof your customization and also in your data migration. We recommend you to refer to the DescriptiveFlex Fields used in India Localization section of this document for details.

Data ConversionSince data conversion from your existing systems is typically the most errorprone area ofimplementation, we recommend that your implementation team invest considerable time planning andtesting it.

We recommend that you test your data conversion program carefully using sample data before youmigrate to Oracle India Localization. After conversion, you should verify the functionality of your data.


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User TrainingPlan training for all members of your company that will use Oracle India Localization.

You should include employees who interact directly with the software or who review the data that is tobe submitted to the Tax Authorities.

The training may include steps on how to use the system to perform specific tasks and explanationsof any new business policies that you may incorporate as a consequence of implementing OracleIndia Localization.

System TestingPlan and execute extensive system testing of your enterprise solution including the Oracle

Applications and any systems that interface with the applications. Your system test environmentshould be as similar to your production system as possible. After you complete the setups and dataconversion, assign users to test the functions that they currently perform.

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Overview of Setting Up Oracle India LocalizationThis section contains a checklist that includes each task you need to perform to complete theimplementation of Oracle India Localization. It lists the steps required to implement Oracle IndiaLocalization along with advanced implementation topics for you to consider.

Before you set up Oracle India Localization, you should have completed relevant Base ApplicationSetup.

Oracle India Localization provides following responsibilities. Each of them is associated with aStandard Application Responsibility

Oracle Inventory India Local InventoryOracle PurchasingIndia Local PurchasingOracle PayablesIndia Local PayablesOracle Order ManagementIndia Local Order ManagementOracle ReceivablesIndia Local ReceivablesOracle Fixed AssetsIndia Local Fixed Assets

To further help you implement Oracle India Localization; the next chapter walks you through a sampleimplementation for Vision India Limited, a fictitious manufacturing organization. For eachimplementation step, we explain how Vision India implements Oracle India Localization. By studyingVision Indias implementation, you can learn more about how to implement your own policies,practices, and procedures using Oracle India Localization.

See: About Vision India Ltd: An Example of Setting Up Oracle India Localization:Vision India may not have implemented all of the features available in this release of Oracle IndiaLocalization



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Setup FlowchartTo assist you to easily setup your India Localization application, a flowchart is provided in figure 1Setup Flowchart. Some of the steps outlined in this flowchart are requiredand some are Optional.Required step with Defaults means that the setup functionality comes with preseeded, defaultvalues 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 defaultvalues, you should perform the corresponding setup step. You need to perform Optionalsteps only ifyou plan to use the related feature or complete certain business functions.

Since some implementation steps are built upon information you define in other implementationsteps, you should perform the steps in the order listed.

Figure 1 Setup Flowchart


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Step 5

Excise InvoiceGeneration

Step 11

Manual BOM

Step 1

DefineOrganizationAdditionalInformation

Step 2

OrganizationTrading Info

Step 3

OrganizationAccountsInformation

Step 4

Tax Calendar

Step 10

Item Categories

Step 9

Tax Category

Step 8

Tax Codes

Step 7

Item LocalizationInformation

Step 6

Sub-InventoryLocations

Step 12

SupplierAdditionalInformation

Step 13

Organization TDSInformation

Step 14

Income TaxAuthority

Step 15

TDS Sections

Step 16

TDS Tax Codes

Step 17

TDS Year

Step 18

SupplierAdditional

Information - TDSDetails

Step 19

Customs Authority

Step 20

BOE Agent

Step 21

Excise Authority

Step 22

Bond Registers

Step 23

Assessable PriceLists

Step 24

CustomerAdditionalInformation

LEGENDRequired Step Optional Step

ORACLE INDIA LOCALIZATION

Required Stepwith Defaults



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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 InformationStep 2 Optional Define Trading Registration DetailsStep 3 Required Define Accounts Information for OrganizationStep 4 Required Define Tax CalendarStep 5 Optional Define Excise Invoice GenerationStep 6 Required Define Sub Inventory LocationsStep 7 Required Define Item Localization InformationStep 8 Required Define Tax CodesStep 9 Required Define Tax CategoriesStep 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 OrganizationStep 14 Required Define Income Tax AuthorityStep 15 Required Define TDS SectionsStep 16 Required Define TDS Tax CodesStep 17 Required Defining TDS year InformationStep 18 Required Define TDS Details for SuppliersStep 19 Required Define Customs Authority

Step 20 Required Defining BOE AgentStep 21 Required Define Excise Authorities

Oracle India Order Management

Step 22 Required Define Bond RegistersStep 23 Optional Define Assessable Price Lists

Oracle India Receivables

Step 24 Required Customer Additional Information


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How to Use This GuideWhen it comes to implementing a Tax solution for India each regime has specific needs. Oracle IndiaLocalization helps you to meet the Tax defaulting, calculation and accounting requirement arisingfrom the Central Excise, Customs, Sales Tax and Income Tax (restricted to TDS and generation ofFA schedule) regimes. India Localization also provides you with valuable information which can be

used both for statutory and management reporting. However, it is very important to know how toimplement the solution, in order to meet the requirements of your organization and Tax Authorities,effectively. Here are some suggested ways to use this guide.

Use it as a StepbyStep Implementation GuideThis guide gives you stepbystep instructions on how to implement Oracle India Localization. Eachstep explains what the step accomplishes, and the mechanics of the step. After you plan yourimplementation, simply follow the steps and enter your business policies, procedures, andrequirements using Oracle India Localization forms.

Use it as a TutorialYou can also use this guide as a learning aid by following Vision Indias Oracle India Localization

implementation. You can learn the mechanics of implementation and get something tangible whenyou finishan Oracle Application with India Localization with which you can experiment.


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Setup Steps

Step 1 Define Organization Additional Information

You must define the structure of your Inventory organizations and locations, which you would bereporting to the Local Tax Authorities. The information defined at this level would be the basis forRecording, Reporting and accounting of the location taxes. Apart from this the user would also definethe organization registration details with Excise, Customs, Sales Tax and TDS authorities.

Information available in Additional Organization Information is the basic data for all IndiaLocalization activities and accounting. The Organization and Locations defined through Common

Application 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. Master Org flag should be checkedonly for an Organization- Location record. It is also to be ensured that the Master Organization-

Location is maintained only as a Reporting entity and no direct receipt/shipment transactions aredone in this Organization.

See Also: Defining Organization Additional Information, India Local Inventory Chapter of IndiaLocalization Users Reference Manual

Step 2 Define Organization Trading Information

You would enter the information of the organizations registered under the Central Excise Rules as aDealer/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 thisOrganization.

You would ensure that no values are entered in any of the fields falling under the Excise region of theTax Information tab of the additional organization information. Any value entered in this region wouldcategorize this organization as a Manufacturing Organization.

SeeAlso: Defining Trading Registration Details, India Local Inventory Chapter of India LocalizationUsers Reference Manual

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. Thevalues entered in the Parameters region would determine the behavior of localization taxescalculated for certain transactions.You will have to enter the register preferences. The excise register that should be hit when you shipexcisable goods would depend on the preferences assigned against each register. The register withthe 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.



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The only deviation from this logic would be when you check the Allow -ve 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 of IndiaLocalization Users Reference Manual



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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 locationwould be defaulted to the other Organization Additional Information records created for the locationswith this organization.

See Also: Defining Tax Calendar, India Local Inventory Chapter of India Localization UsersReference Manual

Step 5 Define Excise Invoice Generation

This feature can be used to automate the Excise Invoice document sequence generation. You cansetup 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 forwhich it is created. For all other Excise Invoices which are created using Order/Invoice Types forwhich setup has not been made, the system uses default number series. This would be a numeric

series, starting with 1, incremented by one. The sequence would be different for eachOrganization/location and the nature of clearance. Within the organization, the sequence would bedifferent for Domestic clearances and Export Clearances.

Before defining the user definable prefixes and excise invoice numbers, setups have to be done inDefine Bond register window where the user needs to associate an Order type for all transactionsOrder Management module and Transaction source for all manual transactions from AccountsReceivable module. The Order type and transaction source will be associated with different type ofexcise removals (like domestic with excise, Bond, Export with excise etc.). Only after associating anOrder type/Transaction source with an excise related transaction type, user should define the userdefinable prefixes and excise invoice numbers in this region.

SeeAlso: Defining Excise Invoice Generation, India Local Inventory Chapter of India Localization

Users Reference Manual

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 subinventories that are identified as bonded for manufacturing organizations and as traded for tradingorganizations. This setup is MANDATORY for all subinventories in your organizations irrespective ofwhether these are Bonded/Trading from the Excise perspective. This is to ensure that non-exciseIndia Localization taxes are considered for Costing and accounting for transactions done in suchSubinventories. A record has to be added for the Subinventory in this window even if it is neitherBonded/Trading. In such cases, both the Bonded / Trading flag has to be left unchecked.

See Also: Defining Sub Inventory Locations, India Local Inventory Chapter of India LocalizationUsers Reference Manual

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.


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The update 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 creditregister is hit. Items classified in the other classes (such as OTIN, OTEX) would not be considered forany excise record updation.

The Trading Flag would work together with the organization Trading Information setup. RG23DRegister would be hit only when the Trading item is transacted in a trading Organization.

See Also: Item Definition, India Local Inventory Chapter of India Localization Users ReferenceManual

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 beuseful 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 defined would be specific to the Operating Unit . On choosing the TaxesLocalized option from the menu, you would get the list of Inventory Organizations, to choose from. Ifthe default organization is already chosen for the session using Change Organization window, thisoption shall not be available on opening the Tax Codes window. Tax records are created for theOperating Unit of the organization chosen. The tax defined can be used only for the Operating Unitfor which it is defined.Taxes once saved, cannot be updated.

SeeAlso: Defining Tax Codes, India Local Inventory Chapter of India Localization Users ReferenceManual

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 andcalculation 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 taxeswould 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.

See Also: Defining Tax Categories, India Local Inventory Chapter of India Localization UsersReference Manual

Step 10 Define Item Categories



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Calendar defined in the Inventory Module. The TDS limits and TDS reports TDS Certificate would bebased on the period. This year would be the Financial Year defined under the Income Tax Act. Therecan only be one TDS Year open at a time.

SeeAlso: Defining TDS Year, India Local Payables Chapter of India Localization Users ReferenceManual

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 todefine the TDS Details in the Supplier Additional Information. You would define the RegistrationDetails and the Applicable TDS Sections and TDS Tax Code that has to default for the transactioncreated 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 Numberdefaults. 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.

See Also: Defining Supplier Additional Information, Local Payables Chapter of India LocalizationUsers Reference Manual

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 shouldhave 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 Customs

Authority field LOV on the Bill of Entry India Localization screen.

See Also: Defining Customs Authority, India Local Payables Chapter of India Localization UsersReference Manual

Step 20 Define BOE Agent



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About Vision India Limited

An Example for Setting up Oracle India Localization

Vision India is a fictitious company based in Pune, Maharashtra. Vision India is a leadingmanufacturer of audio, video, communications, and information technology products for the

consumer markets.

Organization Structure

Vision India Limited is a Limited company having its registered office in New Delhi. It has fourDivisions handling different products such as Video Division, Audio Division, Communication devicesDivision and Computers and Peripherals Division. Each of these divisions manufactures a Range ofProducts.

Following figure provides you an overview of the Organization Structure providing details on theProduct Lines:

Vision India Limited

Video Systems

Color Televisions

VCR's and VCP's

DVD's and VCD's

Audio Systems

Home Theatres

Portable Voice Recorders

Multi CD MP3 Players

CommunicationDevices

Communication Devices

Video Conferencing

Telephones

Computers andPeripherals

Computer Peripherals

Laptops

Personal Computers

To integrate its accounting needs, Vision India Ltd implements other Oracle Applications productssuch as Oracle General Ledger, Oracle Receivables, Oracle Purchasing, Oracle Payables, andOracle Assets.

Vision India being a company manufacturing and operating in India is subject to norms under thefollowing regimes:

1. Central Excise2. Customs3. Local Sales Tax Kerala, Karnataka and Tamilnadu4. Central Sales Tax5. Octroi6. Income Tax Act



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To handle the Tax calculation, defaulting and reporting requirements arising under these regimes,Vision India decides to implement Oracle India Localization. Vision India begins by forming animplementation team. This team, made up of managers who understand Vision Indias operationsand the impact of the above-mentioned regimes on these operations. They also define the policies,procedures, and requirements needed to complete the implementation.Throughout this guide, whenever we discuss a particular aspect of implementation, we discuss howVision Indias implementation team chooses to implement Oracle India Localization. These examplesare usually at the end of

each implementation step and have a gray background.

Vision India may not have implemented all of the features available in this release of Oracle IndiaLocalization.



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Vision India Organization MappingThis section provides details required for Base Apps Organization Setups. This information would bethe basis for Localization Setups

Vision India LimitedLE 1

Video SystemsOU 1

Color TelevisionsIO 1

VCR's and VCP'sIO 3

DVD's and VCD'sIO 2

Audio SystemsOU 2

Home TheatresIO 4

Portable Voice RecordersIO 6

Multi CD MP3 PlayersIO 5


OU 3

Communication DevicesIO 7

Video ConferencingIO 9

TelephonesIO 8


OU 4

Computer PeripheralsIO 10

LaptopsIO 12

Personal ComputersIO 11

ORGANIZATION SETUPLEGAL ENTITY

OPERATING UNITS

INVENTORY ORGANIZATION

LE Legal EntityOU Operating UnitIO Inventory Organization

There would be a single Legal Entity with the Functional Currency as INR. Each of the divisions issetup as a separate Operating Units. Each manufacturing unit will be setup as a separate InventoryOrganization. As each of the products is manufactured at a single location, we suggest setting up alocation for each of the Inventory Organizations.

The Tax Registration requirements and the corresponding setups in India Localization will be detailedin the subsequent sections of this document.



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Vision India - Organization Structure under Income Tax ActThis section provides details of the structure of the Payables department and the registrationrequirements under the income Tax Act.

1. The head office of Vision India Limited located at New Delhi is registered with the IncomeTax Commissioner, New Delhi. It is also registered with the Controller General of Foreign

Trade. New Delhi Office has a PAN (Permanent Account Number) allotted by the Income taxdepartment. The PAN Number is ALBFK8355R.2. The Accounts payable departments located at Bangalore, Chennai and Cochin are registered

with their jurisdictional Income tax authorities for deducting tax at source (TDS) and possessIndividual TAN (Tax Deduction Account Number). The payments for video and Audiodivisions are centralized and managed from the Accounts Payable office located atBangalore. The regional office located in Cochin handles the payments of CommunicationDevices Division and Regional office located at Chennai handles the payments of theInformation Technology division.

Following are the TAN Numbers allotted to each of Accounts Payables Departments by theIncome Tax Assessing Officers.

Division TAN Number

BANGALORE BLRD02603G

CHENNAI CHNE04805ICOCHIN CCHF07007K

Following will be the pictorial depiction of the registration under the Income Tax Act.

Vision India LimitedPAN No: ALBFK8355R

Video SystemsOU 1

Audio SystemsOU 2


OU 3


OU 4

ORGANIZATION SETUP - Under Income Tax Act

LEGAL ENTITY

BANGALORE COCHINCHENNAI

TAN: BLRD02603G TAN: CHNE04805I TAN: CCHF07007K

India Localization Setups related to the Income Tax Act require registration information to bespecified at Legal Entity and Operating Unit levels. These setups will impact the Threshold limitsconsidered for TDS Tax deductions and the Sequence considered for Form 16A Report generatedfrom India Localization.Setup steps and details are detailed in the subsequent sections.



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Vision India - Organization Structure under Sales Tax Regimes

Sales tax is a state tax controlled by the respective state Sales Tax Department. Sales tax isclassified into Central Sales Tax (CST) and Local Sales Tax (LST). A different tax registration isrequired for CST and LST.

As the sales tax, being a state administered tax. The registration requirements vary from state to

state. As a general rule, there will be only one registration granted for organizations operating withinthe state. For Tax registration purpose, the primary business organization located in a specified stateshould be identified as the head office and others will be identified as branches. The head officeorganization would be responsible for tax settlement, accounting and reporting of all theorganizations for which a tax registration is granted.

Following are the organization structure of Vision India from the perspective of Sales Tax. Theorganization is registered in three States in which it operates and under the Central Sales Tax Act.

1. Inventory Organization 1 (Color Televisions), Inventory Organization 4 (Home theaters),Inventory organization 7 (Communication Devices) and Inventory organization 10(Computers and Peripherals) are located in the state of Kerala (one state). All theseinventory organization share the common Sales Tax Registration and KGST RegistrationNumber.

2. Inventory Organization 2 (DVDs and VCDs), Inv. Org. 3 (VCRs and VCPs), Inv. Org.5(Multi CD MP 3 Systems) and Inv. Org 6(Portable voice recorders) are located in the state ofKarnataka.

3. Inventory organization 8 (Telephones), Inv. Org 9(Video Conferencing Devices), Inv. Org11(Personal Computers) and Inv. Org 12 (Laptops) are located in the state of Tamil Nadu.


Video SystemsOU 1


VCR's and VCP'sIO 3

DVD's and VCD'sIO 2

Audio SystemsOU 2

Home TheatresIO 4




OU 3



TelephonesIO 8


OU 4


LaptopsIO 12


ORGANIZATION SETUP - Under Sales Tax Regimes

State: Kerala

TNGST No. 21103852 CST No: 434845878

State: Karnataka

KST No. 26724841 CST No: 95771252

State: Tamil Nadu

KGST No. 29852583 CST No: Ker.12g-1449

The Sales Tax Registration details have to be specified in the Additional Organization informationsetup for India Localization.



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Setup steps and details are detailed in the subsequent sections.

Vision India - Organization Structure under Central Excise Act

Central Excise is a federal tax controlled by the Central Excise Department and is only applicable foran excise-registered manufacturer or an excise-registered dealer. A Central Excise Registration isrequired for each physical location (licensed premises).

Excise registration is always based on a physical location. The Excise Department will identify eachphysical location with a unique Excise Control Code Number (ECC Number). For the purposes of taxreporting, the following information needs to be recorded.

Each excise-registered location will be responsible for complying with excise regulations and need tomaintain separate set of excise related records. Tax settlement, tax credit tracking, tax payments etcwill have to be tracked based on the excise registration number.

1. ECC Number (Excise control Code Number)

2. Type of registration (manufacturer/1ststage dealer or 2ndstage dealer)

3. Name and address of the Excise Range Office that has jurisdiction over the registered physicalpremises

4. Name and address of the Excise Divisional Office that has jurisdiction over the registered

physical premises

5. Name and address of the Excise Commissionarate that has jurisdiction over the registeredphysical premises

Vision Indias has multiple manufacturing facilities located at different places. Multiple Product linesshare some of the manufacturing facilities. All these units are registered under Central Excise.Following are the details of the Manufacturing Locations and the corresponding Excise Registrationdetails:

1. Inventory Organization 1 (Color Televisions) and Inventory Organization 10 (ComputersPeripherals) are located in the same factory having common physical location and address.

2. Inventory Organization 2 (DVDs and VCDs) and Inventory organization 3 (VCRs and

VCPs) are located in the same factory having common location and address.3. Inventory Organization 8 (Telephones) and Inv. Org 9 (Video Conferencing Devices)

Inventory organization 11 (Personal Computers) and Inventory org 12 (Laptops) are locatedin the same premises having common physical address

4. Inventory Organization 4 (Home theaters) Inventory Organization 5 (Multi CD MP 3Systems), Inventory Organization-6 (Portable Voice recorders) and Inventory organization 7(Communication Devices) have distinct physical address and have separate exciseregistrations.

5. Inventory organization 4 (Home theaters) and Inv. Org. 7 (Communication Devices) arelocated in the same city (say Cochin) in different locations having different physical address.Each factory is having a separate excise registration. Octroi reporting need to be donetogether

6. Inventory organization 5 (Multi CD MP 3 Systems) and Inv. Org. 6 (Portable voice recorders)

are located in the same city (say Bangalore), but located differently having different physicaladdress. Each factory is having a separate excise registration. Octroi reporting needs to bedone together (as both factories are located within the jurisdiction of the same localauthority).



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Video SystemsOU 1


VCR's and VCP'sIO 3

DVD's and VCD'sIO 2

Audio SystemsOU 2

Home TheatresIO 4




OU 3



TelephonesIO 8


OU 4


LaptopsIO 12


ORGANIZATION SETUP - Under Central Excise

Organization Location EC Code Commissionerate

Division Range

IO-1, IO-10 Trichur ALBFK8355RXM001

Calicut Thrissur Trichur II Range

IO-2, IO-3 Bangalore ALBFK8355RXM002

Bangalore I Division II Jigani

IO-8, IO-9,IO-11, IO-12

Chennai ALBFK8355RXM003

Chennai I E Division E1 Range

IO-4 Calicut ALBFK8355RXM004

Calicut Kozhikode IV Range

IO-5 Udipi ALBFK8355RXM005

Mangalore Udipi Range A

IO-6 Bangalore ALBFK8355RXM006

Bangalore III Kengeri Range I

IO-7 Calicut ALBFK8355RXM007

Calicut Division I Range A

Note:The Organization Setup has been completed for Inventory Organizations 2 and 3.The same stepshave to be repeated to setup other set of Organizations.



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Vision India - Organization Structure under Central Excise Act Trading WarehousesVision India sells goods both from factories and from its centralized warehouses located at Bangaloreand Chennai. Following are the details of these Organizations

1. Inventory Organization 13 is located at Bangalore and receives material from manufacturingunits in Kerala and Karnataka.

2. Inventory Organization 14 is located at Chennai and receives material from manufacturingunits in Tamilnadu and Kerala

Following are the Registration details of these warehouses

Organization Location EC Code Commissionerate

Division Range

IO-13 Bangalore ALBFK8355RXD001 Bangalore I Division II Madiwala -IIO-14 Chennai ALBFK8355RXD002 Chennai IV Perungud

iPerungudiRange II

Note:The Organization Setup has been completed for Inventory Organizations 13.The same steps have to

be repeated to Inventory Organization 14.



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Setting Up Vision India LtdThis chapter provides you details steps to complete each setup.



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Setting Up Organization Additional InformationThis section describes the procedures to setup Organization Additional through India LocalizationInventory. You must enter the setup information for your company before you using Inventory,Purchasing, Order Management and Receivables modules of India Localization.


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Step 1 Defining Organization Additional InformationYou will use this feature to define the organization structure from Excise perspective. After you definethe structure, you shall use this form to

1. Define Tax Registration Details under the following Regimes:

a. Central Exciseb. Sales Taxc. VAT

2. Accounting Information.

PrerequisitesBefore you enter the Organization Additional Information, you must complete the following setupsthrough the Standard Application:

1. Define Set of Books for Vision India Ltd. The Functional Currency should be INR2. Define Vision India Limited as a Legal Entity3. Define Organizations4. Define Locations

5. Assign Organizations to Locations

NoteAlso refer to the following sections in India Localization Setup chapter of the India LocalizationUsers Reference Manual. Complete all necessary steps before you start this setup:

1. System Administrator Setup2. Set of Books Setup3. General Ledger or Government General Ledger Setup4. Accounts Receivables Setup5. Accounts Receivables Setup Steps6. Accounts Payables Setup7. Inventory Setup

Consider an Example of Vision India Video Systems that has three manufacturing units, two oflocated in the same Physical Location. The Color Televisions division is situated at Trichur, while theDVD/VCD and VCR/VCP units are located at Jigani in under Bangalore Commissionerate.

As two organizations are defined within the same excise registered premises, you can opt to identifyone Organization & Location combination as "Master Organization" and identify the otherorganization as child Organization. In such type of setup, all excise registers for the childorganization will be consolidated with the Master organization.

In this case, you need to setup the Color Televisions Division as the Master Organization for theExcise entity located at Trichur. While, you can choose either of DVD/VCD or the VCR/VCPDivisions as the Master Organization for the Excise entity located at Bangalore. This would make the

other Organization as the Child Organization.

Ideally a dummy inventory organization needs to be created for the Master Organization and the twoinventory organizations should be attached as Child Organization to this dummy MasterOrganization. This is to ensure that the Master Organization is used only for reporting purposes andno transactions are done in the reporting entity.

If you choose to make Vision India DVD's and VCD's organization as the Master Organization,following will be the steps to complete the Additional Organization Information Setup for DVD/VCDand VCR/VCP units:



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A: Vision India DVD's and VCD's - Master Organization Setup

1. Create an Inventory Organization in India Local Inventory using the Organizations Form

2. Create location Vision India - BLR DVD in India Local Inventory. Attach Vision India DVD'sand VCD's to this Locations using the Locations screen.

3. Setup India Tax Information for this Organization. This you will do through the OrganizationAdditional Information screen. Here you would specify:

a. Registration Details: related to Excise, Sales Tax (CST and LST) and VATb. Accounting Information:Here you would specify the Accounting Codes that would

be used to account Excise Duty arising on the Purchase and Sale transactions.

c. Register Preferences: You can specify the order in which the Register balancesshould be utilized to meet the Excise liability arising from the Sale Transactions.

d. Other Parameters: You would specify certain other parameters that would decidethe additional flexibility you would have in Tax calculation and accounting.



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Navigate to India Local InventorySetupOrganization Additional Information. Setup a Record forwith the NULL Location first.

Enter the EC Code and other Excise and Sales Tax details for this Organization, as this is the ExciseLicensed Organization. Also enter the Accounts details and the Tax Calendar details.

You need to note the following while you setup the Registration details for the NULL Location:

a. You should not check the Master Org Flag or select the Master Organization for thisrecord

b. Once you specify details in the Excise block, the organization would be identified as amanufacturing Organization. Which would mean that Excise Accounting and registerupdates would be as required for the Manufacturing Organization.

c. You need not specify any information in the Income Tax block. These fields areredundant. The details you specify in the Additional Organization Unit Details DFF onthe Organization definition screen will be considered for TDS Calculation and Reporting

d. Information you specify for the NULL Location will be carried forward to the recordcreated for the same Organization with Locations.

e. EC Code you define here will be carried forward to the other Locations setup for theOrganization and also to the Child Organizations.

4. Create another record with Organization (Vision India DVD's and VCD's) and location (VisionIndia - BLR DVD). Mark this as Master Organization.



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5. The Excise Records will get consolidated at Master Organization level. i.e., all exciseregisters can be generated at Vision India DVD's and VCD's and location - Vision India -BLR DVD combination.

B Vision India VCR's and VCP's - Child Organization Setup

1. Repeat Steps 1 & 2 of Section A to create a record for the Child Organization and Location.2. Create records with Null location and with Location for this Organization in the Organization

Additional Info form.In the Master Organization field, select Vision India DVD's and VCD's.The EC Code defined for the Master Organization will be copied to this record. You will haveto specify other Registration details.

You would repeat these setup steps for other Organizations in Vision India Limited.



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Step 2 Trading Organization

An Organization which function as an Excise Registered warehouse has specific Excise Dutycalculation, Accounting and reporting requirement. You need to complete certain specific IndiaLocalization Setups in order to meet these requirements. Repeat the following steps for each

Organization functions as a Trading Organization.

Vision India Warehouse - Bangalore - Trading Organization Setup

1. Create an Inventory Organization in India Local Inventory using the Organizations Form

2. Create location Vision India Trading - Bangalore in India Local Inventory. Attach VisionIndia Warehouse - Bangalore to this Locations using the Locations screen.

3. Setup India Tax Information for this Organization. This you will do through the OrganizationAdditional Information screen. Here you would specify:

a. Registration Details: related to Excise, Sales Tax (CST and LST) and VAT


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Sales price for shipments made from this Organization/Location is inclusive ofthe Excise tax. If the flag is checked, the Excise Duty is not added to theReceivables Account. If the flag is Unchecked (Default Value), Excise taxattached to the Shipment is added to the Receivables Account. Thecorresponding Credit is made to Account specified in Excise Tax definition.

e. You need not specify any information in the Income Tax block. These fields areredundant. The details you specify in the Additional Organization Unit DetailsDFF on the Organization definition screen will be considered for TDSCalculation and Reporting

f. Information you specify for the NULL Location will be carried forward to therecord created for the same Organization with Locations.

g. Every Organization Location combination defined as a Trading Organization willbe an Independent reporting entity. There cannot define Master/ChildOrganizations for a Trading Organization.

4. Create another record with Organization (Vision India Warehouse - Bangalore) and location(Vision India Trading - Bangalore).

5. India RG 23D Register Report would be generated for the Purchase and Sale transactionscreated from this Organization.

Repeat these steps to setup Trading Warehouse Located at Chennai.



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Step 3 Defining Organization Accounting InformationAccounts specified here would be for accounting of Central Excise and Customs Duties included inthe Transactions. It is mandatory to enter values in all the fields. Details of those fields and itsrelevance to transactions are discussed below.

Field Description Description Impact on TransactionsOSP Excise This account will be used to pay

the excise duty on goods sent forOutside processing. This isusually a Expenses a/c.

Used In Transactions: OSP

Material sent for Jobwork doesnotattract Excise Duty. Hence, thisfield does not have anyrelevance.

Excise Expenses Specify a general ledger accountfor Excise Expenses.

Used In Transactions: RMAThis default account is beingused to track the Excise duty duefrom the excise department onaccount of customer returnstreated as FG return or scrap.

Excise Payable/paid Specify a general ledger accountthat would default in all OM - ARtransaction to Account for ExciseDuty arising on delivery of goods.

Used In Transactions: OM AR, ISO Cycles

1. This account will be thebalancing account for theExcise duty liability met fromthe balances available in oneof the Duty Registers.

Event: Excise Invoice Generation

2. The amount debited to thisaccount will be reversed oncompleting the AR Invoice

created for this shipment.Event: Creation of AutoInvoice

3. This account is debited withED on a AR Credit Memo

Event: Creation and Completionof Manual AR Invoice

4. This account is debited withED involved in an ISOtransaction


5. This account is credited withED involved in an ISOtransaction, on Issue(depending on the TransitType)

Event:On Issue Transaction

CENVAT RM Specify a general ledger account Used In Transactions:



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to be defaulted on all Purchasingtransaction to account forCENVAT credit available onpurchase of Raw Material.

Purchasing Cycles

1. This account will be debitedwith Excise duty creditavailable from purchase ofRaw Material.

Event: On Claim CENVAT

2. This account will be creditedon Return to Receiving, toreverse the Excise dutyclaimed on purchase of RawMaterial.

Event: On Return (to Receiving)

3. This account will be creditedwith Excise Duty liabilityarsing in a Shipmenttransaction. This happensonly when the liability is metfrom the balance available inRG 23 A Register


4. This account will be creditedwith Excise Duty liabilityarsing in a AR Invoice. Thishappens only when theliability is met from thebalance available in RG 23 ARegister

Event:AR Invoice Completion

CENVAT CG Specify a general ledger accountto be defaulted on all Purchasingtransaction to account forCENVAT credit available onpurchase of Capital Goods.

Used In Transactions:Purchasing Cycles

1. This account will be debitedwith Excise duty creditavailable from purchase ofCapital Goods. Only 50% ofCENVAT Credit would beaccounted in the year ofPurchase. The balance will

be debited to CENVATReceivable Account

Event: On Claim CENVAT (in theyear of Purchase)

2. This account will be debitedwith remaining 50% ofCENVAT Credit 2ndClaim



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Event: On Claim CENVAT (in thesubsequent year or on 2ndClaimin the Year of Purchase)

3. This account will be debited

with Excise duty creditavailable from purchase ofCapital Goods.


4. This account will be creditedon creating a Returntransaction, to reverse theExcise duty claimed onpurchase.

Event: On Return (to Vendor)

5. This account will be creditedwith Excise Duty liabilityarsing in a Shipmenttransaction. This happensonly when the liability is metfrom the balance available inRG 23 C Register


6. This account will be creditedwith Excise Duty liabilityarsing in a AR Invoice. Thishappens only when the

liability is met from thebalance available in RG 23 CRegister

Event:AR Invoice CompletionPLA Register Specify a general ledger account

to be defaulted for Excise Dutyliability settled through balance inPLA Register. This account willbe defaulted in Payments totowards Excise duty liabilitythrough TR-6 Challan.

Used In Transactions: OM, ARCycles, and Payables

1. This account will be creditedwith Excise Duty liabilityarsing in a Shipmenttransaction. This happensonly when the liability is met

from the balance available inPLA Register


2. This account will be creditedwith Excise Duty liabilityarsing in a AR Invoice. Thishappens only when the



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liability is met from thebalance available in PLARegister

Event:AR Invoice Completion

3. On Accounting for the APInvoice created throughCapture PLA Paymentsscreen. This Account will bedebited in this transaction.

Event:Accounting for AP Invoice(created through Capture PLAPayments)

Bill of Entry Specify a general ledger accountfor the Customs Duty paidthrough a Bill of entry

Used In Transactions: Payablesand Purchasing Cycles

1. On Accounting for the APInvoice created through Billof Entry India Localizationscreen. This Account will bedebited in this transaction.

Event:Accounting for AP Invoice(created through Bill of EntryIndia Localization)

2. On Applying the CustomsDuty liability included in a

Receipt to a Bill of Entry. ThisAccount will be credited inthis transaction.


Excise RG23D Specify an Account that will beused to account for Excise Dutyincluded in a Purchase made bya Trading organization. This

Account is invoked only whenExcise in RG23D Flag on theTrading Info Tab of the

Organization Tax Informationscreen is checked.

Used In Transactions:Purchasing Cycles

1. If the Excise in RG23D Flagis checked for theorganization, the Excise

Amount included in the

Receipt will be Debited to thisAccount.

Event: Receipt of material

CENVAT Reversal Specify an Account that will beused to account for the CENVATCredit Reversal arising from aExempted Sale.

Used In Transactions: OMCycles

1. If you specify an Excise



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Setting Up other Organization Parameters

Allow tax change on receipt By enabling this flag, the taxes inthe receipt defaulted from theoriginal purchase order could bechanged.

CHECK BOX

Allow negative balance in PLA By enabling this check box, theuser will be able to over drawfrom the PLA Balance availablewith him. If this is not enabled,system will hold shipments forwant of funds in PLA.

CHECK BOX

RTV Account Flag You should check this field onlywhen you have decided that youwould debit the supplier only withthe Excise Duty paid by himduring the supply of goods. Oncethis check box is enabled, you willbe able to associate an accountwhere the differential duty needsto be accounted.

This account is also debited withThird Party Taxes included in anRTV.

CHECK BOX



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Step 4 Define Tax CalendarIndia Localization Taxes would be calculated only when the organization falls within an Active TaxCalendar. You can keep only one year active at a time. The Tax Calendar defined for an OrganizationNULL location would be defaulted to the other Organization Additional Information records created forthe locations with this organization.

Steps To create a Tax Calendar

Navigate to India Local InventorySetupOrganizationsAdditional Information

1.2.

Query for the Organization. Navigate to Tax CalendarEnter a Year Code, Start Date and End Date. This will be an active year.

To create the subsequent years, click Open Next Year Button. This will action will close the existingActive Year and create the next year.



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Step 5 Excise Invoice Generation Organization AdditionalInformation

Organizations are required to maintain two series for Excise Invoice generation. One for domesticsales other for Exports. However, the Excise Authority having jurisdiction over the factory has the

authority to specify different Transaction Types.

In case your organization is required to generate a different excise invoice sequence for aTransaction source or a combination of transaction sources, you will have to make additional Setupsfor Excise Invoice Generation. On completing this Setup Step, you can generate Excise Invoicenumbers in a sequence and with the alphanumeric prefix that you prefer.

You can skip this setup. On doing this, the system will generate only two series of excise invoices,one for domestic clearances another for Exports. These would be numeric values, incremented byone and would be without any prefixes.

Prerequisites

Before you enter the Organization Additional Information Details, you must:

1. Define Organizations2. Define Locations3. Organization Additional Information4. Tax Calendar5. Transaction Types6. Bond Register Setup

Steps to complete Excise Invoice Generation Setup

Navigate to India Local InventorySetupOrganizationsAdditional InformationSelectOrganizationTax Calendar

1. Navigate to the Active Year. Click on Excise Generation Button. Select an Order Type.Choose one of the options from the LOV The options would be

a. Order: On selecting this option in combination with the Order Type, the ExciseInvoice number generated on shipping the delivery created with this Order Typewould be based on the definition specified for this record.



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b. Return To Vendor: The document sequence defined here would be applicable toexcise invoice numbers generated for a Return to Vendor Transaction.

c. Domestic: The document sequence defined here would be used for DomesticTransactions. A Domestic transaction would be the one created with a Order/InvoiceType attached to Domestic with Excise type of Bond Register. Please note that thiswill be applicable to all Domestic orders/Invoices other than those explicitly setup

through this screen.d. Invoice: On selecting this option in combination with the Invoice Type, the ExciseInvoice number generated on Completing an AR Invoice would be based on thedefinition specified for this record.

e. Export: The document sequence defined here would be used for ExportTransactions. A Export transaction would be the one created with a Order/InvoiceType attached to Export with Excise type of Bond Register. Please note that this willbe applicable to all Export orders/Invoices other than those explicitly setup throughthis screen.

2.

3.

4.

If you have chosen Order or Invoice as the Transaction Type then, in the Order/InvoiceType field, select a value available from the list.Select appropriate Register code to which the Excise Invoice sequence should beapplicable.Enter the number logic by entering the Prefix (can be alphanumeric) and the Start No, EndNo and the Jump by.



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Step 6 Defining Sub Inventory Locations

Before you start using India Localization Inventory, the sub-inventories have to be associated withOrganization/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 boxfor 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.

PrerequisitesBefore you enter the Sub inventory Locations, you must:

1. Define Organizations2. Define Locations3. Organization Additional Information

4. Define Sub inventories

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

To Setup SubInventory

1. Navigate to India Local InventorySetupOrganizations2. Select the Organization and Location on the header

3. Select Sun Inventories in the details section.4. You need to check the Bonded Flag for all Excise Bonded locations in your organization.

If the subinventory is not bonded, you can leave the field blank.5. Trading Flag is applicable for trading organizations and should always be checked.

Note1. The above Sub Inventory setup is mandatory in nature & missing the same will result in

shipping getting stopped.2. A Subinventory can either be Bonded or Trading but not both.



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Step 7 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.

PrerequisitesBefore you enter the Item Information, you must:

Define OrganizationsDefine 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:

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

Field Description Type Action Description

Context User need to select India Items

from the listExcise Flag (Required) PICK EDIT

HELPThe options are YES & NO. .

Any dispatch transactionverifies the excise status fromthe excise flag attribute. Theexcise status is not updateableat the transaction level. If thisflag is set to 'No', no records willbe entered in the excise


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registers normally for Issue typeof transaction.

CENVAT Flag (Required) PICK EDITHELP

The options are YES & NO.. IfCENVAT is to be claimedagainst purchase of an item, theitem CENVAT flag must be

'Yes'. If the flag is set to 'No',the item will not be available forclaiming CENVAT credit.Further, this flag is normallyconsidered for Receipt type oftransaction for updating the RGRegisters. This flag cannot bemodified at transaction level.

Item Class (Required) PICK EDITHELP

For this attribute user haschoice of ten predefined values

All items of inventory have to beassociated with one of theseitem classes. A tax groupingcalled a tax category can beassociated to a item class thusenabling a set of taxes to bedefaulted while performingtransactions. Based on the ItemClass for an item, ExciseRegister entries will be passed.The options and its impact aregiven below.

Note: Since item related Localized information is very critical for updation/generation of Localizedrecords, user needs to apply enough thoughts before inputting values in these flex fields. In the flexfield, for the context value, from the List of values, user needs to pick India Localization.



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Description of Item Class Code and Impact

Item class code Impact

RMIN All inputs/raw materials/consumables 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 therecords/reports generated for CENVAT credit on raw materials. (RG 23 Aregisters will be effected)

RMEX All inputs/raw materials/consumables 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 therecords/reports generated for CENVAT credit on raw materials. (RG 23 Aregisters will be effected)

CGIN All capital goods (as per excise definition) used in or in relation to themanufacture needs to be classified under this category. All transactions to

the Bonded sub inventory with this item class will have an impact on therecords/reports generated for CENVAT credit on capital goods. (RG 23 Cregisters 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 therecords/reports generated for CENVAT credit on capital goods. (RG 23 Cregisters will be effected)

CCIN All intermediate goods need to be grouped under this category. Based onthe 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 exciserelated transactions even though the transactions are from bonded subinventory.

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 associatethe excise Tariff to each excisable item.

Field Description Type Action Description

Folio No (Optional) This is an additional fieldprovided to you to define any


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other relevant information. FolioNo is user definable, and has novalidations.

Trading Flag (Required) PICK EDITHELP

By enabling this Flag the entriesinto RG23D will be controlled. Fora Non-Trading item this Flag can

be set to 'NO'.

Note: If an Item is tradable in one Inventory Organization but considered as Production Input inanother Inventory Organization, then the user has to update its Descriptive Flex-field through theOrganization Items Menu depending upon the nature of the business. If an item is defined as TradingItem, then the Modvat Flag has to be set to NO. This would update only the RG 23D Registers andnot the CENVAT Registers.



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Step 8 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.

PrerequisitesBefore you enter the Tax Codes, you must:

1. Define Organizations2. Define Locations3. Organization Additional Information4. Define Form Names5. Define TDS Sections6. Define Suppliers and Supplier Sites7. 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 taxescan 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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Field Description Type Action DescriptionTax Name (Required) Enter a short tax name/tax code

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

Type (Required) EDIT HELPPICK

Select type of tax from list ofvalues. This will indicate how totreat the tax at transaction level.T

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