OFI GST O2C Functional Document PDF

Oracle Financials for India (OFI)
Goods and Services Tax (GST)

Order to Cash
Authors:
Santhoshkumar Ananth, AllahBaksh Shaik Order to Cash flow

Rama Mohan Derangula Advance Receipts
Souvik Mandal AR Document Sequencing
Subbarao Nemani Supplementary
Transactions, Exports
Creation Date: 21-Mar-2016

Last Updated: 09-Dec-2017
Document Ref:
Version: 2.0
Organization: Oracle India Private Limited.
OFI-GST Order to Cash Flow 1

Document Control
Change Record
Date Author Versi Change Reference

on
21-Mar-16 Santhoshkumar 1A Initial document

Ananth
30-Sep-16 Santhoshkumar 1.0 Phase-I frozen document
Ananth
28-Feb-17 Souvik Mandal 1.1 AR Debit Memo Document Sequencing
Functionality
28-Feb-17 Subbarao Nemani 1.1 Supplementary Transactions
28-Feb-17 Pavan Raparla 1.1 GST Exports functionality
02-Mar-17 Rama Mohan 1.2 Advanced Receipts functionality
Derangula changes are incorporated.
27-Apr-17 Rama Mohan 1.3 Incorporated changes related to AR
Derangula transaction accounting.
25-May-17 Rama Mohan 1.4 Incorporated changes to Advance
Derangula receipt tax setup and AR Invoice
accounting.
02-Dec-17 Rama Mohan 2.0 Changes to Advance receipts and O2C
Derangula , flow
AllahBaksh Shaik
09-Dec-17 Subbarao Nemani 2.0 Exports Functionality
Reviewers
Name Position
Rajnish Kumar Director, Tax Development
V S Baburaj Product Strategy Director
Audience
Name Position
12.1 & 12.2 Implementation team
12.1 & 12.2 Customers

Table of Contents
Document Control .................................................................................................................................. 2
1 – Introduction ........................................................................................................................................... 5
1.1- Scope ............................................................................................................................................... 5
2 – Pre-Requisite Setups .......................................................................................................................... 6
3 – Sales Order Transaction..................................................................................................................... 9
3.1 - Flow Diagram ................................................................................................................................. 9
3.2 - Sales Order Transaction ............................................................................................................ 10
3.3 - Document Sequencing ............................................................................................................... 20
3.4 - Accounting Entries ...................................................................................................................... 23
4 – Order to Invoice Flow ........................................................................................................................ 24
4.1 - Flow Diagram ............................................................................................................................... 25
4.2 - AutoInvoice Import ...................................................................................................................... 26
4.3 – Accounting ................................................................................................................................... 31
4.4 - Receipt Application ..................................................................................................................... 33
5 – Accounting based on Tax Point Basis ............................................................................................ 35
5.1 - Ship Confirm ................................................................................................................................ 36
5.2 – AutoInvoice .................................................................................................................................. 36
6 – Standalone AR Transactions ........................................................................................................... 37
6.1 - Flow Diagram ............................................................................................................................... 37
6.2 - Standalone AR Invoice ............................................................................................................... 38
6.3 - Accounting Entries ...................................................................................................................... 43
7 – Bill Only Order .................................................................................................................................... 44
7.1 - Flow Diagram ............................................................................................................................... 45
7.2 - Bill Only Order ............................................................................................................................. 46
7.3 - Accounting .................................................................................................................................... 48
7.4 - Receipt Application ..................................................................................................................... 49
8 – Tax Recalculation .............................................................................................................................. 51
8.1 - Tax Recalculation ........................................................................................................................ 51
9 – Advance Receipts.............................................................................................................................. 57
9.1 - Setups ........................................................................................................................................... 57

9.2 – Transaction Flows ...................................................................................................................... 63
10 - AR Debit Memo Document Sequencing ....................................................................................... 82
10.1 – Pre-requisite Setup .................................................................................................................. 82
10.2 – Transaction Cycle .................................................................................................................... 83
11 – Supplementary Transactions ......................................................................................................... 87
11.1 – Introduction ............................................................................................................................... 87
11.2 – Basic Business Needs............................................................................................................. 87
11.3 – Major Features ......................................................................................................................... 87
11.4 – Setups ........................................................................................................................................ 88
11.5 – Case Study................................................................................................................................ 91
12 – Exports ............................................................................................................................................ 114
12.1 – Overview of Exports............................................................................................................... 114
12.2 - Definitions................................................................................................................................. 115
12.3 - Overview................................................................................................................................... 117
12.4 - Setups ....................................................................................................................................... 118
12.5–Transaction Flow ...................................................................................................................... 122
13 - Summary ......................................................................................................................................... 126

1 – Introduction
"Order to cash" (O2C or OTC) normally refers to the business process for receiving and processing
customer sales. It follows "Opportunity to Order" and covers business-to-business (B2B) and business-to-
consumer (B2C) sales
The OFI functionality lets you satisfy all business needs related to Tax calculation required for a Sales
order Transaction and also the relevant extended O2C flows (e.g. Advanced Receipts, Exports).
1.1- Scope
This document provides the Functional overview for ‘Oracle Financials for India’ (OFI) product on the
Order to Cash front. The document helps you with the setups required for transacting Order to Cash Cycle,
Advance receipt, Supplementary transactions and exports with respect to GST.
Note: The current content has been compiled in reference to the frozen scope specified in the document:
EBS GST Infrastructure Scope.docx

2 – Pre-Requisite Setups
1. Tax Regime
2. Tax Type
3. Tax Rates
4. Tax Category Setup (Optional)
5. Tax Rule Setup (Optional)
6. Item Classification Setup
7. First Party Registration
8. Third Party Registration
9. Document Sequencing
10. Shipping Parameters
11. Global Parameters
12. Sales Order Transction Types : Tax Event
13. Business Events
Document Sequencing discussed in detail in the upcoming chapters
Steps 10 and 13 are specific to Financials for India Order Management for tax defaulting to AR and
document sequence generation

Shipping Parameters
(N)  OM responsibility  Oracle Order Management  Setup  Shipping  Shipping Parameters
Set check box 'Raise Business Events' to 'Yes'.
Raise Business Events

Checkbox Enabled
Global Parameters
(N)  OM responsibility  Oracle Order Management  Setup  Shipping  Global Parameters
Set check box 'Raise Business Events' to 'Yes'.
Raise Business Events

Checkbox Enabled

Sales Order Transaction type: Tax Event
On the Sales Order Transaction type, make sure that “Tax Event” set to NULL.
Business Events
The below Business events should be enabled in order process the shipment taxes and Tax Invoice
Generation.
Business Event Purpose
oracle.apps.wsh.line.gen.staged - Allow user to review & modify taxes before ship

(Pick Release) confirm
- Redetermination of taxes, if SO does not have taxes

oracle.apps.wsh.delivery.gen.interfaced and Copy from Source option is not set
(Ship Confirm) - Generate Tax Invoice for the shipment
- Process Accounting for shipment taxes

3 – Sales Order Transaction
A seller-generated document that authorizes sale of the specified item(s), issued after receipt of a
customer's purchase order. A sales order usually implies that there will be no additional labor or material
cost incurred for the sale, except where it is used to initiate a production process. The Sales order,
sometimes abbreviated as SO, is an order issued by a business to a customer. A sales order may be for
products and/or services
Please Note in that GST Solution the significant change is such that there is no specific form by name
Sales Order (Localized)
Users have to create sales orders directly from base form and attach taxes using “Tools-> India Tax
Details”.
3.1 - Flow Diagram

Create Sales Order
Header/Line Info
Navigate to Tools India Tax Details. Add taxes if

defaulting mechanism is not used
Pick Release the sales

Order
Ship Confirm the Sales

Order
Tax invoice generation would be triggered.

India - Check Delivery OM/INV Interface lists the error, in
case of any issues during shipment taxes processing.
Navigate to Tools India Tax

Details to check the taxes and
Invoice number

3.2 - Sales Order Transaction
(N)  Oracle Order Management  Orders,Returns  Sales orders
a) Create a Sales Order. Provide all the required Header and Line Information

b) Save the Sales Order and Navigate back to Sales Order header
Navigate to Tools  India Tax Details
Tools
India Tax
Details

Few Significant columns explained as below
SL.No. Field Functional Description Query
1 Document Number Transaction Number (Can be Sales Order Yes

Number,AR Transaction Number etc)
2 Document Status Shows the Status of the Yes

Document(Entered,Booked,Closed etc)
3 Currency Code Currency Code used in the transaction Yes
4 Shipment Number Delivery Line Number No
5 Delivery Detail ID Line Number of the Item displayed against No

the delivery will be displayed
6 Tax Point Basis Defaults from the tax type and users cannot No
modify the same.
7 Document Tax Invoice Tax Invoice number of shipment No

Number
8 Document Tax Invoice Tax Invoice Date of shipment No

Date
9 Original Tax Invoice It would be manually populated during RMA No

Number and it is the Original Shipment Tax Invoice
Number
10 Original Tax Invoice It would be manually populated during RMA No

Date and it is the Original Shipment Tax Invoice
Date
India Tax Details UI Continued….

Header Block where
users will be able to see
the tax details and other
information defaulted
based on setups
Users can add the tax

category to all lines,
specific lines or modify
the tax category that
defaulted

India Tax Details UI Continued
User will be able to see

the Item, Tax Category,
Organization, and
Location, Tax amount
etc

Taxes,TPB ,Currency,Tax
Amount, Customer details,
Invoice Number and date
details are captured in this
block

c) Book the Sales Order
Status: Booked
d) Pick Release the sales order
(N)  Oracle Order Management  Shipping  Transactions
Select “Launch Pick

Release”

e) Ship Confirm the Sales Order
(N)  Oracle Order Management  Shipping  Transactions  Provide Order Number  Click
on Find  Delivery  Ship Confirm
- During ship confirm, the Sales Order Taxes would be copied on to the shipment, provided “Copy
Tax From Source” setup is done at OU level, in common Configuration setup of GST.
- Otherwise, the shipment taxes recalculated based on the Rule Basis setup done in common
configuration setup.
f) Based on the setup done in Shipping and Global Parameters, Concurrent “India - Check
Delivery OM/INV Interface” will be invoked
Concurrent “India - Check

Delivery OM/INV Interface”
Completed

g) Navigate to Tools  India Tax Details to check the taxes and Invoice number
Shipped
Checkbox
TPB:Delivery

 “Shipped” Checkbox is checked which shows the line is ship confirmed
 Tax Point Basis(TPB) is “Delivery” which gets defaulted based on the tax used and the
option provided while defining the tax type
 If document-sequencing setup not defined, the Document Tax Invoice will not generate.
The document-sequencing is explained below.
h) During processing for OM Interface, India Tax Invoice Number will be generated for both
shippable and non-shippable lines.
i) Delivery errors will be populated into JAI_WSH_EXCEPTIONS_T, and details can be output by
Concurrent Process ‘India – Check Delivery OM/INV Interface ’ output.
j) Run the “India – Process Delivery OM/INV Interface” for the failed Delivery ID. It would generate
Tax invoice and create the accounting.

3.3 - Document Sequencing
To sequence the invoice number for different transaction types, it is required that to assign a prefix to a
sequence series. As far as legal requirement, the sequence refreshes at the beginning of a new fiscal
year. Hence, we should allow user to assign effective dates for a sequence series.
(N)  Oracle Financials for India  Tax Configuration  Define Document Sequencing

Document Sequence
Sl.No Field Name Description Query
1 Sequence Name Sequence Name that needs to be used for Yes

the transactions. User Enterable value
2 Start Number You can specify the Start Number for a Yes
specific Sequence
3 Current Number This field will display the current document Yes
sequence that is used.
4 Prefix Any alpha-numeric code that would be Yes

prefixed to the Invoice number
5 Last Number You can specify an end number for the Yes
document sequences.
6 Start date You should pick the start date here. Yes
7 End Date You can give a end date to disable the Yes
sequencing.

Document Sequence Assignments
Sl.No Field Name Description Query/Enabled
1 Tax Regime Name Tax Regime Name that used has already Yes
defined in the Tax Regime. Pick the value
from the LOV
2 Registration Number Registration Number for the Tax regime Yes

picked
3 Organization Type You can pick the Organization Type here. Yes
LOV Contains
1.Operating Unit
2.Inventory Organization
4 Organization Name You can pick the organization here. LOV Yes
contains Organizations related to the
registration number and Organization Type
selected above
5 Location You can pick the location related to the Yes

organization selected above
6 Document Type You can pick the document type here. Yes
LOV contains:
1. AR Transactions
2. Corrections
3. Default
4. Inter Org transfer
5. Manual Entry
6.Receipts
7.Return to Vendor
8.Sales Order .
You can define different document

sequences for different types of documents
above. If you select default the document
sequence applies to all the documents.
7 Document Category You can pick the document category here Yes
The document category name depends
upon the document type selected above.
8 Item Classification Pick the Item Classification from the LOV Yes
9 Start Date Start Date gets defaulted from Document Yes

Sequence Header.
10 End Date You can give a end date to disable the Yes
sequencing for this particular combination
alone if required

Once Document Sequence setup, Invoice number generated as below for a fresh sales order
Invoice number SHIP/9

generated
3.4 - Accounting Entries
Event Tax Point Basis Account Debit Credit
Ship Confirm Delivery Tax Suspense Tax Amount
Tax Liability Tax Amount

4 – Order to Invoice Flow
Order to cash (OTC or O2C) is a set of business processes that involve receiving and fulfilling customer
requests for goods or services.
"Order to cash" (O2C or OTC) normally refers to the business process for receiving and processing
customer sales.
The term is most prominent in the design and improvement of Enterprise Resource Planning (ERP)
systems

4.1 - Flow Diagram
Create Sales Order

Header/Line Info
Navigate to Tools India Tax Details. Add taxes if

defaulting mechanism is not used
Pick Release the sales

Order
Ship Confirm the Sales

Order
India - Check Delivery OM/INV Interface fires if the business

events are set properly and generates Invoice number
based on Document Sequencing setup

Details to check the taxes and
Invoice number
Run Workflow background Engine

and AutoInvoice import program
AR transaction gets created.

Apply Receipt to the
Details to check the taxes
AR Transaction
defaulted from sales order and
Invoice number

In the previous chapter, we have already covered until Sales Order. The remaining steps as explained
below
4.2 - AutoInvoice Import
AutoInvoice is a concurrent program that interfaces Sales Orders from Order Management to Invoices in
Accounts Receivable.
a) Run Workflow Background Engine

b) Run AutoInvoice Import Program
Sales Order
174

AutoInvoice Import
Program Completed
Normal
Selected and successfully processed

one record
c) Find Transactions

AR Transaction 562 got
created and the reference
field has the SO Number
Note: Earlier, TAX Invoice updated in “Reference”. Now, Tax invoice available from India Tax Details.
d) Navigate to Tools  India Tax Details

e) Taxes from Sales order has got defaulted and the Invoice number is also defaulted
Invoice number that
got generated at
Sales Order has
been defaulted to
AR Transaction

4.3 – Accounting
a) Navigate to Tools  Create Accounting
b) Navigate to Tools View Accounting

Accounting Entries
AR Invoice Delivery Receivable Tax Amount

accounting
Tax Suspense Tax Amount
NOTE: As TPB for the tax type is Delivery, there will not be any accounting entries passed specifically by
Oracle Financials for India

4.4 - Receipt Application

Create Accounting and View the same from Tools  View Accounting
As TPB for the tax type is Delivery, there will not be any accounting entries passed specifically by Oracle
Financials for India

5 – Accounting based on Tax Point Basis
Users have the flexibility of selecting the Tax Point Basis while defining the Tax Types, based
on which the accounting will happen.
In the below illustration the same is explained
NOTE: Two taxes added with different Tax Types to illustrate accounting based on TPB
Tax Types Tax Point Basis(TPB) Tax Rate Tax Amount
O2C_REC Delivery 16 408
GST_O2C_INVOICE Invoice 12 306
Tax Point Basis will get defaulted after ship confirm for TPB as “Delivery” and after AutoInvoice for TPB
as “Invoice”

5.1 - Ship Confirm
During Ship Confirm accounting and Invoice Number Generation will happen only for the Tax Type with
TPB as “Delivery”
Ship Confirm Delivery Tax Suspense Tax Amount
5.2 – AutoInvoice
At the time of AutoInvoice
a) OFI Inserts Tax Distributions for below taxes with below accounts and generates Invoice Number
for Tax Type with TPB as “Invoice”
Event Tax Point Basis Tax Distributions Credit Account
AutoInvoice Delivery Suspense Account
AutoInvoice Invoice Tax Liability
NOTE: OFI just inserts the tax distributions with respective accounts but the accounting will be done for
above from Base “Create Accounting”

6 – Standalone AR Transactions
Accounts receivable is a legally enforceable claim for payment held by a business for goods supplied
and/or services rendered that customers/clients have ordered but not paid for. These are generally in the
form of invoices raised by a business and delivered to the customer for payment within an agreed time
frame
Please Note in that GST Solution the significant change is such that there is no specific form by name
Transactions (Localized)
Users can create AR Transactions directly navigating to the base form itself
6.1 - Flow Diagram
Create the Header, Bill-To, Ship-to

etc and save the Header
information
Click on Line Items and fill the line

level details
Navigate back to Header. Tools 

India Tax details
Pick the Organization and location.

The same is required for adding
taxes/tax defaultation if any
Complete the invoice and Navigate

back to Header. Tools -> India Tax
details
On completion of invoice the Invoice

number gets generated from the
Document Sequencing setup
Create Accounting and View the same

6.2 - Standalone AR Invoice
(N)  Oracle Receivables  Transactions  Transactions
a) Create the Header, Bill-To, Ship-to etc and save the transaction
b) Click on Line Items and fill the line level details

c) Navigate back to Header. Tools  India Tax details
Pick the Organization and

location. The same is
required for adding
taxes/tax defaultation if any

d) Add the Tax Category and save
e) Complete the Invoice

f) Navigate to Tools  India Tax Details
On completion of invoice
the Invoice number gets
generated from the
Document Sequencing
setup
g) Account and view the accounting
NOTE: From OFI perspective there will not be any accounting. OFI’s scope ends once we
populate the tax distributions

6.3 - Accounting Entries
AR Invoice Delivery Receivable Tax Amount

Complete
AR Invoice Invoice Receivable Tax Amount

Complete

7 – Bill Only Order
When creating sales orders, there are many instances where we need to create a BILL Only Sales Order.
There are situations when the company is creating an Order for invoicing but there will not be any
shipments for this order,
Eg : If you buy a Warranty for a product in this case there is not physical shipment needed
If you have requested for a service of any product , in this case you are requesting the visit of a technician
to come and service , no physical shipments might be involved
In such scenarios when the order line is created it is in Entered Status
On booking the Order the line status changes to BOOKED Please make not that line does not go into
Awaiting Shipping status
Once workflow background process runs the Order line is Close

7.1 - Flow Diagram
Create the Header,Bill-To,Ship-to

etc and save the Header
information
Click on Line Items and fill the line

level details
Navigate back to Header. Tools ->

India Tax details
Taxes gets defaulted if default

mechanism is set/Add the taxes
manually
Book the sales order
Run Workflow background engine and

run AutoInvoice import
Taxes gets defaulted and based on

Document Sequence Invoice number
gets generated
Apply the Receipt to the same

7.2 - Bill Only Order
Create the Header,Bill-

To,Ship-to etc and save
the Header information
Click on Line
Items and fill
the line level
details

Navigate back to
Header. Tools ->
India Tax details
Taxes gets defaulted

if default mechanism
is set/Add the taxes
manually
After AutoInvoice
import is done
AR Invoice 542
gets generated

Taxes gets
defaulted and
Invoice number
GST-O2C13 gets
created
7.3 - Accounting

Apart from above entries, which are created by Base, OFI creates below accounting as well as TPB is
“Delivery”
AutoInvoice Delivery Receivable Tax Amount
Tax Suspense Tax Amount
AR complete Delivery Tax Suspense Tax Amount
7.4 - Receipt Application

NOTE: From OFI perspective there will not be any accounting.

8 – Tax Recalculation
Taxes gets recalculated based on the TPB, provided if the tax rate is different on TPB
8.1 - Tax Recalculation
Case1
a) NOTE : Tax rate is 16% till 14-APR-2016 and the same is 20% starting from 15-APR-2016
TPB: Delivery
b) Create a Sales order on 14-APR-2016 and book the same

Sales Order
Booking Date:
14-Apr-2016
Tax : O2C_REC_16% Tax Amount : 408
c) Pick Release and Ship confirm the same on 15-Apr-2016. Query the same from fulfilled
orders.
d) Tools  India Tax Details. Find that tax amount gets recalculated during Shipping as the Tax
Point Basis used in the Tax Type is “Delivery”
Tax Amount : 510
Tax : O2C_REC_16%

Invoice Date
15-APR-2016
e) After running autoinvoice import the taxes on fulfilled orders gets carried forward to the AR
invoice as well
Tax Amount: 510

Case 2
Tax recalculation during AutoInvoice
a) NOTE : The tax rate is 14% on 05-MAY-2016 to 06-MAY-2016 for Tax rate code
GST_O2C_INVOICE_12 which has TPB as “INVOICE” and the same is 7% starting from 07-
MAY-2016
TPB: Invoice

b) Create a Sales Order on 05-May-2016 ,pick release and ship confirm the same
Sales Order
Booking Date:
05-May-2016
Tax: GST_O2C_INVOICE_12 Tax Amount: 357

c) Perform AutoInvoice on the 7th May and Find that tax amount gets recalculated during
AutoInvoice as the Tax Point Basis used in the Tax Type is “Invoice”
Tax : GST_O2C_INVOICE_12 Tax Amount: 179(Tax gets recalculated as

per TPB)

9 – Advance Receipts
When payments are received in advance for the supply of goods or services that are subject to GST, tax
need to be accounted as a self assessed tax on receipt of such payments. GST calculated on advances
can be claimed as tax offset upon supply of goods or services. While accounting for the GST liability on
receipt of payment in advance, customers are required to report the HSN/SAC code of the goods/services
to be supplied for which the advance is received
Listed below are the various processes on advanced receipt functionality
9.1 - Setups
Find below the details which gives a quick understanding of the setups to be performed for
mapping the Advance Receipts requirement:
 Tax type definition
 Tax rate code definition
 Tax category setup
 Reporting type code definition
 Item Classification definition
 Third party registrations setup
Tax type
Make sure the flag Self

Assessed/reverse charge
flag NOT is enabled

Ensure the advance
suspense account is given
Tax Rate Code

Tax Category
Reporting Type Codes

The Reporting codes will help to enable HSN,SAC details required to attach in Receipt / AR
transaction tax forms.
You must use below three seeded reporting type codes for setup.
 GST_HSN_CODE
 GST_SAC_CODE_ITEM
 GST_SAC_CODE_TP
These codes are user configurable and values to be provided as applicable to your business.
GST_HSN_CODE: Create the HSN codes at Inventory Item level for applicable goods.
(N)  Oracle Financials for India  Reporting  Define Reporting Types
1. Query for the Reporting Code GST_HSN_CODE

2. Define the HSN codes

3. Assign the HSN codes to specific Inventory Item in Item classification window
(N)  Oracle Financials for India  Item Definition  Define Item Classification 
Reporting Codes
GST_SAC_CODE_ITEM: Create the SAC codes at Inventory Item level for the applicable
goods.
1. Query for the Reporting Code GST_SAC_CODE_ITEM

2. Add the SAC codes

3. Assign the SAC codes to specific Inventory Item in Item classification window
(N)  Oracle Financials for India  Item Definition  Define Item Classification 
Reporting Codes
GST_SAC_CODE_TP: Create the SAC codes at third party level. This option will be used when
you have the services applicable but do not have inventory module installed. SAC Codes defined
under third party will take precedence in defaulting the codes on to the transaction i.e AR Transaction
/ Receipt.
1. Query for the Reporting Code GST_SAC_CODE_TP

2. Add the SAC codes
Note: It is possible to assign only one SAC code in the third party registration form for any
specific customer.

9.2 – Transaction Flows
9.2.1 – Receipt Creation:
a) Create the AR Receipt using below navigation whenever the amount is received from
customer
(N)  Oracle Receivables  Receipts  Receipts
b) Once the Receipt details are saved, goto Tools > India Tax Details to attach taxes on the
receipt .we can create multiple/single receipt lines based on HSN, SAC applicability. These
codes are mutually exclusive and it is not possible to define both HSN, SAC codes together
on single receipt line.
Users can modify the defaulted

SAC/HSN codes to desired
SAC/HSN codes if any

Sl.No Field Name Description Query/Enabled
1 Receipt Num Receipt Number will be populated by default Yes

from Parent Receipt form
2 Organization Name You can pick the organization here. LOV Yes
contains Organizations related to the
registration number and Organization Type
selected above
3 Location You can pick the location related to the Yes
organization selected above
4 Currency Receipt Currency Yes
5 Line No Enter the receipt Line number. You can add Yes
multiple Lines if the advance need to breakup
with multiple lines
6 HSN Code Enter Applicable HSN Code Yes
7 SAC Code System will default the Third party SAC code Yes
if it is defined in Third party registration.
You can override the SAC code manually
here
8 Tax Category User can manually attach the tax category Yes
here. Or Define Rules to default tax category.
9 Amount Enter the Receipt line amount Yes
10 Tax amount Tax amount applicable will be auto populated Yes

once the taxes are attached
11 Acknowledgement GSTN Acknowledgement Number should be Yes
Number captured once the Receipt is confirmed.
12 Acknowledgement Date The Date on which the GSTN Yes

Acknowledgement is received.
c) Verify the Taxes populated and apply the taxes.

Few Significant for Taxes are explained below
SL.No. Field Functional Description Query
1 Tax Rate Name Attach the advance tax rate applicable. The Yes
tax rate can be Recoverable / Non
recoverable tax rate.
2 Tax Point Basis It would be Payment by default Yes
3 Self Assessed / The flag must be set NO in Tax type Yes

Reverse Charge definition , to attach them against Receipt
d) Confirm the Receipt taxes once you review the details captured
e) Once the Receipt taxes are confirmed , system will create the receipt tax accounting and also
the tax repository will be populated with the tax Liability details
(N)  Oracle Financials for India  Settlement Management  Review Tax Repository

Click on Find to check the tax repository entries for Document type “AR Receipt”
f) Click on transaction details to review the associated tax details against receipt. If the GST
acknowledgment details are available, capture the same on the receipt and save it.
It is not possible to modify acknowledgment details once saved.
NOTE: Acknowledgement details can be captured from the AR Receipt screen or can
navigate from the “Transaction details” form in review tax repository.

Accounting
Event Account Debit Credit
Receipt Tax Advance Suspense Tax Amount

Confirm
Liability Tax Amount

9.2.2 – AR Transaction Creation:
(N)  Oracle Receivables  Transactions  Transactions
a) Create the AR transaction with Transaction Source, Bill to, Ship to etc with required details.
b) Click on Line Items and capture the line level details

c) Navigate back to Header. Tools  India Tax details
Note: This being final bill / AR transaction, the tax applicable will be normal GST (
IGST/CGST/SGST) taxes which will be non-self-assessed tax type.
d) Complete AR Invoice.

e) Once the AR transaction is completed, system will generate the tax accounting and also the
tax repository will be populated with the Tax Liability details
Click on Find to check the tax repository entries for Document type “AR Transaction”

f) Click on transaction details to review the associated tax details against Transaction.
Accounting
AR Transaction Receivables Tax Amount

accounting
Liability Tax Amount

9.2.3 – AR Transaction Application/Unapplication:
a) Query the Receipt for which the AR Invoice is to be applied or unapplied.
b) Click on Apply and select the AR transaction to be applied /unapplied.

Select the transaction to
be applied /unapplied
c) Save the application /unapplication details. Make sure the Tax type details are same
between the AR Transaction and Receipt to have offset accounting generated.

d) System will not generate any tax accounting and no repository will hit during this events ( ie.
application , unapplication of AR Invoice).
e) The Process of accounting and repository creation for AR transaction application

/unapplication will be driven by “India - Period Ending Process”.
India - Period Ending Process:
India –Period Ending Process is the key concurrent introduced in GST for generating offset tax
accounting.
1. It will prepare the records for filing to GSTN.

2. The offset accounting will be generated for AR transaction application / unapplication
when applied to receipt.
3. The concurrent will have below parameters to run
SL.No. Parameter Description
1 Tax Regime Select the Tax regime
2 Registration Number Select First Party Registration Number
3 Period Name Select Open Period to which the account

entries to be generated
4 Running Mode Final – Use this mode to generate repository

entries in final version
4. It is recommended to schedule this program at regular intervals to have the

repository entries and accounting generated for AR Invoice application/unapplication
5. The Concurrent is Run ‘Final’ Mode, system will generate the repository entries with
Reporting status=’Ready to File” and the accounting will be generated.
The reporting status will be

recorded in the repository
screen once the Period end
processing is run.
6. Refer table below for the accounting

AR Transaction Apply Liability Tax Amount (Applied

Amount)
Advanced Suspense Tax Amount (Applied

Amount)
AR Transaction UnApply Advanced Suspense Tax Amount (UnApplied

Amount)
Liability Tax Amount (UnApplied

Amount)
7. Once the accounting is generated and Reporting Status =’Ready to File” and settled,
It is not possible to modify/reverse the accounting. i.e If the accounting entries for
“AR transaction application” is generated and filed to GST, It is not possible to
offset/reverse this accounting incase the transaction is unapplied.

9.2.4 – Receipt Reversal:
a) Query the receipt that need to adjusted /reversed
b) Check the Tax details
c) Perform Receipt Reversal by entering the details

d) The receipt is reversed.

e) Once the Receipt is reversed , system will create the receipt tax accounting and also the tax
repository will be reverse the tax Liability details
Click on Find to check the tax repository entries for Document type “AR Receipt”
Accounting
AR Receipt Reversal Liability Tax Amount
Advance Suspense Tax Amount

9.2.5 – Customer Refunds:
The customer advances (AR Receipt) which is received would applied with the final sales
Invoice(AR transaction). In most of the cases the advance amount would consumed or adjusted
with the sales invoices of the customer. Incase of any amount remaining un-utilized and the same
need to be settled using customer refund process.
a) Query the receipt that need to adjusted or refunded and verify the tax details.
b) Apply the refund activity to the Receipt and capture the Refund attributes like customer name
, Refund payment method etc.

Note: If you do not find the Activity ‘Refund’ in List of values, Please make sure you define the
Refund activity in Receivable activities which is standard receivables functionality
c) When the refund is processed, system will generate the Refund AP Invoice as shown below.
The refund invoice would be reviewed from Invoice workbench in below screen or from
Standard Payables module.
d) Refund AP Invoice is generated with type ‘Payment Request’ and in validated status.

e) Run the India Period End concurrent Program to generate the offset tax accounting for the
refund amount.
f) Below screenshot shows the repository reversal for the Refund Invoice, also the same can be
verified from “Review Tax Repository” screen.
Accounting
Refund Invoice Creation Liability Refund Amount
Advance Suspense Refund Amount

10 - AR Debit Memo Document Sequencing
AR Debit memo is essentially an incremental billing for the amount that should have been
included in the original invoice.
10.1 – Pre-requisite Setup

Document Sequencing: - To sequence the invoice number for different transaction types, it is
required to define document sequence by mentioning a prefix and a start number of a sequence.
For basic document sequencing setup, please refer section 3.3 above. Below setup is showing
how to assign AR Debit Memo transaction type to one existing document sequence definition
Navigation: - (N) Oracle Financials for India  Tax Configuration  Define Document
Sequencing
i. Query for the document sequence which you want to use for AR Debit
Memo.
ii. Assign the transaction type of AR Debit Memo for which you want to
generate document sequencing.
iii. Ensure that base transaction type used for creating AR debit memo is
being mentioned as Document Category while assigning the document
sequence as shown in the below screen shot.

This is Transaction Type Defined in
Transaction Type Setup of Base
Receivables as the following
screenshot
10.2 – Transaction Cycle

a. Create AR Debit Memo Transaction
Ensure that Type should be as same as mentioned in document sequencing

assignment setup shown above.
b. Enter Transaction Line Details.

c. Navigate to Tools  India Tax Details to enter the tax details for the debit memo.
d. Following tax details form will appear. Enter following details:-

i. Organization and Location Details
ii. Tax Details (if not defaulted)
e. Click ‘Apply’ button.

f. Save the details.
g. Go back to base receivables transaction form and complete the transaction.

h. ‘Complete’ checkbox has got enabled now.
i. Navigate to Tools  India Tax Details window to check whether Tax Invoice Number
has got generated or not.
Tax Invoice Number and date has got generated and is being displayed in Tax
details Section.

11 – Supplementary Transactions
11.1 – Introduction
In Business case, customer balances are largely affected with changes in price rate for transactions of a
retrospective period. For all these, you can use the feature of Supplementary Transactions in Oracle
Financials for India. Using these Supplementary Transactions Feature you can identify the source
documents affected by these changes, calculate the amount of Invoice or a Credit Memo has to be
raised.
11.2 – Basic Business Needs
The Supplementary Transaction feature in Oracle Financials for India helps to identify, track and account
the price changes i.e.
 Identify the transaction for which Supplementary Invoice or Credit Memo are to be raised
for changes in Price/Tax/Assessable Price Change.
 Identify the source documents which are affected by price , rate change for a
retrospective period
 Verify the calculation of amount to arrive for the Supplementary Invoice or Credit memo
which is raised for changes
 Option to raise or not to raise a Supplementary Invoice or Credit Memo
 Manually create Invoice or Credit memos
11.3 – Major Features
In this release, Define Price, Tax UI is extended from the existing architecture.
Below is the list of major functionalities included.
 Raise Supplementary Invoice / Credit Memo
There is an option to raise a supplementary invoice for the identified transactions. The option of
not raising the invoices would be useful in scenarios where you would not be raising supplementary
invoices for some customer transactions. And also have an option of creating Manual Invoices and credit
notes for price revisions and tax rate changes.
 Track Price changes
Mapping Screen can be used to track the previous Price lists and Tax Codes.

 Revised Price List
For Standalone AR invoices, it is necessary to enter a Separate Revised Price List into the system from
Price List Menu.
Supplementary Transactions can be raised on account of the following
 Price Change for a retrospective period
In both cases either a supplementary Invoice or Credit Memo will be raised basing on the retrospective
changes. The transactions which will have an effect on change of price changes are listed under the
Mapping type.
 Price List
This is used for both Order Management and Accounts Receivables instance are available.
 Invoice Price List
This is specifically used for Standalone AR invoices.
 Assessable Value
It can also be called as Transaction Value Price list where there is change in the Assessable
Value.
11.4 – Setups
To import the generated Supplementary Invoices or the Credit memo as AR Transactions in Transactions
form it’s source should be defined in.
And the defined source should be picked up when running the AutoInvoice Import Concurrent program.
11.4.1 Define Transaction Source
(N): Oracle Receivables Setup Transactions Sources
Check if Source “INDIA INVOICES” is defined or not.
If this is not defined, perform the below steps.
a. Define Transaction Source in the above navigation with Name as “INDIA INVOICES”.
b. At the Description field, you may enter “India Localization Supplementary Invoices / TDS Credit
Memos” and save the record.

c. Screen shot of the same
Transaction
Source
Defined for .
11.4.2 Define Transaction Type
We need to define the Transaction type for the generated Supplementary Invoice or the Credit Memo.
And these details will be populated in the “Supplementary Transactions” Form for the eligible transaction.
Below are the steps for defining Transaction Type, if it doesn’t exist in the system.
(N): Oracle Receivables Setup Transactions Transaction Types
a. For Defining Credit Memo
i. Enter the name as “JAI Credit Memo”
ii. Select Class as “Credit Memo”
iii. Description value as “JAI Credit Memo”
iv. Creation Sign value as “Negative Sign”
v. Enter other mandatory required details
vi. Enter the Accounts for this Transaction type under the Accounts tab.
Below is the screen shot

Transaction
Type
Credit memo for

negative amount
b. For Defining Supplementary Invoice type / JAI Invoice
i. Enter the name as “JAI Invoice”
ii. Select Class as “Invoice”
iii. Description value as “JAI Invoice”
iv. Creation Sign value as “Positive Sign”
v. Enter other mandatory required details
vi. Enter the Accounts for this Transaction type under the Accounts tab.
Below is the screen shot

Transaction
Type
Supplementary
Invoice
11.5 – Case Study
Consider the following products and its relevant cases:
Product Name Original Price (INR) Revised Price (INR)
JAIRMIN 100 --
Also consider the below tax rates
Tax Code Original Rate
IGST 10%

11.5 .1– Case 1
Only Price Revision (Increase), but no change of Tax Rate.
AR Invoice with Original price of 10 Quantity of item JAIRMIN . raised on 10-FEB-2017 with per unit price
as 150(INR) and a revised price list introduced with retrospective effect from 09-FEB-2017 (value as 200
INR) and in this case the user needs to raise a Supplementary Invoice.
Parameter Original Price Revised Price(INR) Supplementary Invoice

(INR)
Net Sales 1500 2000

(10*150)
(i.e. 10*200 )
Tax 10% 10%

550
Total Value 1650 2200
Below are the steps over the system.
1. AR Invoice # 10640 created.

QTY : 10,unit price
Item : JAIRMIN 150
2. Under Tools India Tax Details GST Taxes are attached.
GST Tax
Type

3. Created a Price List, which is used for retrospective transactions for the revision.
Per unit price 200
4. (N): India Local Receivables Supplementary Transactions Supplementary Changes
Batch Id generated on
Saving record.
For
Standalone
AR Invoices Price List
attached
5. (N): India Local Receivables Supplementary Transactions Supplementary Transactions

AR Invoice Amount
AR Invoice Amount after Price

Number Change
6. From the screen, we find that the AR Invoice raised before revision is for amount Rs 1650 and Rs
2200 raised for the revised with the newly changed price list where per unit price is 200.
7. So, for the difference of 2200-1600 i..e Rs 550 , supplementary Invoice is generated.

On checking
AR invoice is
generated
8. On selecting “Raise Invoice” Checkbox, and Clicking on “Export” Button, the record is eligible for
generation of AR Credit memo.
9. Fields “Transaction Source”, “Transaction Type” are mandatory.
10. On running “AutoInvoice Import” Program, the record will be appearing in the AR Transactions
form.
11. For importing the record the Transaction Sources have to be defined in.
12. On successful completion of AutoInvoice Import Concurrent, to know the created Credit Memo,
follow the below navigation.
13. To know the generated AR Supplementary Invoice Number,
a. Open the Transaction Summary Form.
b. Select the record which is appearing in the Transaction form.
c. Click On “Line Details” button.

Supplementary
Invoice number
generated
Source for
Supplementary Invoices
14. Screen shot of the AR Supplementary Invoice.
AR Invoice
Number
For Supplementary , it is
Class is Invoice
Since it is supplementary
invoice , it is positive

11.5.2– Case 2
AR Invoice with Original price of 10 Quantity of JAIRMIN raised on 10-FEB-2017 with per unit price as
250(INR) and a revised price list introduced with retrospective effect from 09-FEB-2017 (value as 200
INR) and in this case the user needs to raise a Credit Memo.
Parameter Original Price Revised Credit Memo

(INR) Price(INR)
Net Sales 2500 2000

(10*250)
(i.e. 10*200)
Tax 10% 10% 550
Below are the details:-
1. Created AR Invoice for 10 Quantities.

2. Under ToolsIndia Tax Details , attached the required Taxes

3. Created a Price List, which is used for retrospective transactions for the revision.
4. (N): India Local Receivables Supplementary Transactions Supplementary Changes
Used for
standalone
AR invoices
Select the
Price List

In the above form, we have created Supplementary changes entry for the “Customer” with the
respective Mapping Type “Invoice Price List”. This mapping type is specific for AR transactions /
Standalone AR transactions. The new Price list name is assigned and the records are saved.
5. (N): India Local Receivables Supplementary Transactions Supplementary Transactions
Open the form and query for the required customer.
(Existing – Revised
Amount) = 550
AR Invoice where
Credit memo created
Check this for AR

Credit Memo
Generation
6. Since there is a difference which is necessary to be paid, a Credit memo is generated for the
portion of Rs.550.
7. On selecting “Raise Invoice” Checkbox, and Clicking on “Export” Button, the record is eligible for
generation of AR Credit memo.
8. Fields “Transaction Source”, “Transaction Type” are mandatory.
9. On running “AutoInvoice Import” Program, the record will be appearing in the AR Transactions
form.
10. For importing the record the Transaction Sources have to be defined in.
11. On successful completion of AutoInvoice Import Concurrent, to know the created Credit Memo,
follow the below navigation.
a. Open the Transaction Summary Form.
b. Select the record which is appearing in the Transaction form.

c. Click On “Line Details” button.
Click on
“Line Details
“
d. Transaction Line form opens. In here, scroll to the extreme right, where we find field
“Supplementary Invoice Num”.
Scroll to
Right

Generated
AR Invoice
Number
AR Invoice
e. This is the AR Credit Invoice created. Number
12. Below is the Generated AR Credit memo.
Source For
Supply.
Transactions
Class and Type as

Credit Memo
Invoice Amount

11.5.3– Case 3
Sales Order with Original price of 10 Quantity of JAIRMIN raised on 10-FEB-2017 along with AR Invoice
with per unit price as 509.15 (INR) and a revised price list introduced with retrospective effect from 09-
FEB-2017 (value as 600 INR) and in this case the user needs to raise a supplementary invoice.
Parameter Original Price (INR) Revised Price(INR) Supplementary

Invoice
Net Sales 5091.5 6000

(10*509.15)
1090.5
Taxes 20 % 20%
Total Value 6109.8 7200
1. Raised Sales order with Qty 10, unit selling price as 509.15.
Price List attached on

Order

2. Price list “India Price List” attached. Order amount # 5,091.50, Tax amount: 1018 i.e. 20% of
Order price, Total invoice amount # 6,109.50.
3. Complete the OM to AR Cycle for the generation of AR invoice.
4. Now, AR Invoice # 3 is created.
5. Create a Price List for change of unit price.

(N):Order Management Pricing Price Lists Price List .
From below screen shots we have defined Price list # SN OM AR Price List with, unit price as
600.

Effective from –
retrospective period
Unit price 600 for item

JAIRMIN
6. Created new entry in supplementary changes form.
For OM to AR
transactions
New Price List
Old Price List
Batch id # 10140 created.

7. Screen shot of the supplementary Transactions form when queried with AR Invoice # 4.
Supplementary Invoice
Order is created with amount INR 6109.15 ( inc. Taxes ) for 10 Qty.
Now, with revised price list, where unit price is 600 for 10 Qty it is 6000 and 20 % tax is 1,200
INR. Now the total revised amount is 7,200 INR.
For the difference portion, this is raised in.
8. Click on Line Details button.

9. Scroll to extreme right, to view the generated AR Invoice.
Generated Supplementary
invoice
10. Below is the generated Supplementary Invoice, which is generated for the difference portion.
Supplementary
transactions source
Supplementary invoice
positive amount

11.5.4 – Case 4
Sales Order with Original price of 10 Quantity of JAIRMIN raised on 10-FEB-2017 along with AR Invoice
with per unit price as 509.15 (INR) and a revised price list introduced with retrospective effect from 09-
FEB-2017 (value as 200 INR) and in this case the user needs to raise a Credit memo.
Parameter Original Price Revised Credit Memo

(INR) Price(INR)
Net Sales 5100 2000

(10*510)
(i.e. 10*200)
Tax 20% 20% 3720
1. Raised Sales order with Qty 10, unit selling price as 510.

2. Attached 20% tax rate.
3. Book the Order and perform other tasks for OM to AR cycle.
4. AR Invoice 62 generated.

5. Price list SN OM AR PL 2 where unit price value is 200.
Unit price defined as 200

INR

6. Supplementary changes form : Batch Id 10260
Mapping type for OM to AR

transactions Old Price List Newly defined
price list
7. Supplementary Transactions form
Credit Memo
generated
Source and
Type entered
8. Generated supplementary AR invoice

Supplementary invoice
number
9. Generated AR Invoice
Credit memo for

negative amounts
Credit memo
amount

12 – Exports
12.1 – Overview of Exports
As per Exports law, Under Section 16 (Chapter VII) of the IGST for zero rated supplies for exports and
deemed exports.
Extract of Chapter VII from IGST Act
ZERO RATED SUPPLY
16. (1) “zero rated supply” means any of the following supplies of goods or services or both, namely:––
(a) Export of goods or services or both; or
(b) Supply of goods or services or both to a Special Economic Zone developer

or a Special Economic Zone unit.
(2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services
Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that
such supply may be an exempt supply.
(3) A registered person making zero rated supply shall be eligible to claim refund under either of the
following options, namely:––
(a) he may supply goods or services or both under bond or Letter of

Undertaking, subject to such conditions, safeguards and procedure as may
be prescribed, without payment of integrated tax and claim refund of
unutilized input tax credit;
or
(b) he may supply goods or services or both, subject to such conditions,
safeguards and procedure as may be prescribed, on payment of integrated tax
and claim refund of such tax paid on goods or services or both supplied, in
accordance with the provisions of section 54 of the Central Goods and Services
Tax Act or the rules made there under.

GST Structure
GST
CGST SGST IGST

(Intrastate (Intrastate (Interstate,
transactions) Transactions) Imports & Exports)
12.2 - Definitions
1. Deemed Exports: as notified by the Central Government/State Government on the
recommendation of the Council, refer to those transactions in which the goods supplied do not
leave India, and payment for such supplies is received either in Indian Rupees or in convertible
foreign exchange;
2. Export of goods: It means taking out of India to a place outside India. The supply or any such
service shall be treated as ‘export of service’ when
a. the supplier is located in India,
b. the recipient is located outside India,
c. the place of supply is outside India,
d. the payment for such goods/service has been received by the supplier of goods/service
in convertible foreign exchange
3. EOU: Export Oriented Unit.
4. GST: GST stands for "Goods and Services Tax". It is a comprehensive indirect tax levy on
manufacture, sale and consumption of goods as well as services at the national level. All the
existing indirect taxes levied on goods and services by the Indian Central and State
Governments would be subsumed under GST.
5. IGST (Integrated Goods and Services Tax): Tax levied under the Integrated Goods and
Services Tax Act, 2016.
6. Import of Goods: It means bringing into India from a place outside India. The supply of any
service/goods shall be treated as an “import” if,

a. the supplier is located outside India,
b. the recipient is located in India,
c. the place of supply is in India, and
d. the supplier of goods/service and the recipient of goods/service are not merely
establishments of a distinct person
7. Input tax: in relation to a taxable person, means the (IGST and CGST)/(IGST and SGST)
charged on any supply of goods and/or services to him which are used, or are intended to be
used, in the course or furtherance of his business and includes the tax payable under sub-
section (3) of section 7
8. Input tax credit (ITC): Credit of input tax as defined in Section 2(56)
9. Output tax: in relation to a taxable person, means the CGST/SGST chargeable under this Act
on taxable supply of goods and/or services made by him or by his agent and excludes tax
payable by him on reverse charge basis
10. TDB: Tax Determination Basis, based on which, the tax defaulting can be setup in the system.
11. Zero rated supply: a supply of any goods and/or services on which no tax is payable but credit
of the input tax related to that supply is admissible;
12. First Party: The Organization or business unit which is depositing the tax and which is
configuring the system.
13. Third Party: Supplier or Customer having business transactions with the Organization.

12.3 - Overview
The main objective of this document is to help understand the procedure to be followed so to map
the Customer requirements in reference to the Goods and Services tax (GST) - Exports being
introduced in India.
Option 1: Supply goods or services, or both, under bond or Letter of Undertaking, subject to such
conditions, safeguards and procedure as may be prescribed, without payment of integrated tax, and then
claim a refund of unutilized input tax credit.
The exporter needs to file an application for refund on the common portal either directly or through the
facilitation center notified by the GST commissioner. An export manifest or report has to be filed under the
Customs Act prior to filing an application for refund.
Option 2: Any exporter or United Nations or Embassy or other agencies/bodies as specified in section 55
who supplies goods or services, or both, after fulfilling certain conditions, safeguards and procedures as

may be prescribed; and paying the IGST, can claim refund of such tax paid on the supplied goods or
services, or both. The applicant has to apply for the refund as per the conditions specified under section
54 of the CGST Act.
An exporter is required to file a shipping bill for the goods being exported out of India. In this case, the
shipping bill is considered as a deemed application for refund for the IGST paid. It would be deemed to
have been filed only when the person in charge of the shipment files the export manifest or report,
mentioning the number and date of the shipping bills.
Conditions on Supply of Goods & Services to SEZ
(a) Zero rates supply shall include export and supplies/sale made to Special Economic Zone
(SEZ). In other words, any supply or sale made to SEZ is treated at par with normal export
sales. Therefore, if any goods are sent to SEZ, the same shall be treated as export and if
any supply is received from SEZ, the same is treated as imports.
(b) Since any supply made to SEZ is treated at par with the normal export supply, in
that case LUT and bond shall be required to be filed. Further, in case bond is filed, a
BG of 15% shall also required to be filed.
12.4 - Setups
Find below the details which gives a quick understanding of the setups to be performed for
mapping the India GST Exports requirement:

Functional Flow – Exports with Payment scenario
Ensure to have a specific defined

tax for Exports under Payment
In Tax Type Form, Ensure Self

Assessed is checked
Create IGST Tax Rate under Tax

Type Form
Raise a Sales order and apply the

created IGST Taxes for Exports
Raise a Sales order and apply the

created IGST Taxes for Exports
Ship Confirm the order
Import AR Invoice

12.4.1 - Define a new Tax Type
(N): Oracle Financials for India Tax Configuration Tax Types
Ensure to use a specific tax for Exports.
Note: This is the only case where “Self Assessed” Flag is checked under the O2C cycle. And this
as mentioned is specifically used for Exports under Payment functionality so this cannot be
used elsewhere in other transaction cycles.
a. Ensure that “Self Assessed / reverse charge” checkbox is checked.
b. None of other checkboxes are required to be checked in.
c. As these are Reverse Charge taxes , “Tax Point Basis” field will be set by default as Invoice .
But , we need to change this to “Delivery”.
On the same DEVELOPMENT is equally working over bug 27053774. As an interminent
solution , we can update the TPB for this Tax type in TEST , refer step d(ii) for update.
d. Now, As these are for Exports and Accounting to be Generated at DELIVERY , run the below
statement to change the TPB for the tax type :
(i) Select * from jai_tax_rates where tax_rate_name =’IGST_EXP_REBATE’ ;

-- pass the newly Defined Tax RATE .
(ii) Run the below update to change the TPB from INVOICE to DELIVERY
Update jai_tax_rates set tax_point_basis =’DELIVERY’ where tax_type_id=:Tax_type_id ;
 Pass the value of tax_type_id from above query : 2(a).
Commit;

e. In the tax type form, ensure that all the respective accounts are defined in for the respective
ledger, OU , Inventory and location combination.
12.4.2 - Define Tax Rate
This is required for defining the required rate for the Tax. Here, tax is applicable for IGST with 18
Percentage.
(N): Oracle Financials for India Tax Configuration Tax Rate
12.4.3 - Define First & Third Party Registration
(a): Ensure to define First Party for the Inventory Organization for which you are transacting
(b): Third Party for the Type: Customer for which we are transacting.

12.5–Transaction Flow
12.5.1 – Exports under Payment
GST shall not be charged on goods/services exported from India
1. Raise a Sales order to OU : Vision India HYD OU1
2. Enter Line information
3. Ensure that at shipping tab, the Warehouse is picked correctly where the Tax type is defined.
4. Go to Order Header, click on Tools – India – Tax Details, and enter the Tax defined in previous
step.

5. Apply and Save the Record.
6. Book this Order.
7. Launch Pick Release and Ship Confirm this Order.
After successful completion of “ship confirm” stage, the accounting entry gets generated.
This can be reviewed by quering GL Interface Table.
(a) SelecT * from GL_Interface where reference10 like ‘:ENTER THE TAX TYPE’;
OR
(b) Select * from gl_interface order by date_created desc;

8. Ideally the accounting entry for IGST tax is
Account Debit Credit
IGST Liability -- X
IGST Expense Account X --
9. Navigate to “shipping transactions form” and query for the sales order. Click on Delivery.
Select the delivery and navigate to Tools – India Tax Details
Note: GST Tax Invoice number is generated and this is setup driven via the Document
Sequencing. Here the value generated is “124” under Document Tax Invoice Number.
10. Run Workflow Background Process Concurrent.
11. Run AutoInvoice Import Program and on successful completion the relevant AR invoice gets
generated.
12. Screen shot of the AR invoice, where Tax liability is NOT charged to customer.

13. On navigating to Tools – India Tax details, we find the Tax amount ,but this is not charged to
customer and the relevant GST invoice number ( appeared on delivery) will reflect on AR
Invoice.
14. To ascertian the accounting aspect for AR , we can go back to the AR screen , click on
Distributons where there is no Entry for Tax portion.
15. On Accounting the created AR Invoice, there will be no accounting of Tax portion.
12.5.2 – Exports under Bond / LUT
This is under review and will be shared.

13 - Summary
The above document will provide the below benefits:
 Setups related to Order to Cash.

 Manual Sales Order, AR Transactions ,Order to cash, Bill Only Transaction cycles
 Accounting, Tax Recalculation based on TPB(Tax Point Basis)
 Major difference between the current India Localization structure and the GST solution.
 Setups and transaction flows for Advanced Receipts in GST
 AR Debit Memo Document Sequencing Functionality in GST
 Supplementary Transactions setup and process
 Export process for GST

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Oracle Financials for India (OFI)

Goods and Services Tax (GST)

Santhoshkumar Ananth, AllahBaksh Shaik Order to Cash flow

Creation Date: 21-Mar-2016

Organization: Oracle India Private Limited.

OFI-GST Order to Cash Flow 1

Date Author Versi Change Reference

21-Mar-16 Santhoshkumar 1A Initial document

Rajnish Kumar Director, Tax Development

V S Baburaj Product Strategy Director

OFI-GST Order to Cash Flow 2

OFI-GST Order to Cash Flow 3

OFI-GST Order to Cash Flow 4

OFI-GST Order to Cash Flow 5

4. Tax Category Setup (Optional)

5. Tax Rule Setup (Optional)

6. Item Classification Setup

7. First Party Registration

8. Third Party Registration

10. Shipping Parameters

11. Global Parameters

12. Sales Order Transction Types : Tax Event

13. Business Events

Document Sequencing discussed in detail in the upcoming chapters

OFI-GST Order to Cash Flow 6

(N)  OM responsibility  Oracle Order Management  Setup  Shipping  Shipping Parameters

Set check box 'Raise Business Events' to 'Yes'.

Raise Business Events

(N)  OM responsibility  Oracle Order Management  Setup  Shipping  Global Parameters

Set check box 'Raise Business Events' to 'Yes'.

Raise Business Events

OFI-GST Order to Cash Flow 7

Business Event Purpose

oracle.apps.wsh.line.gen.staged - Allow user to review & modify taxes before ship

- Redetermination of taxes, if SO does not have taxes

OFI-GST Order to Cash Flow 8

3.1 - Flow Diagram

Navigate to Tools India Tax Details. Add taxes if

Pick Release the sales

Ship Confirm the Sales

Tax invoice generation would be triggered.

Navigate to Tools India Tax

OFI-GST Order to Cash Flow 9

(N)  Oracle Order Management  Orders,Returns  Sales orders

OFI-GST Order to Cash Flow 10

OFI-GST Order to Cash Flow 11

SL.No. Field Functional Description Query

1 Document Number Transaction Number (Can be Sales Order Yes

2 Document Status Shows the Status of the Yes

3 Currency Code Currency Code used in the transaction Yes

4 Shipment Number Delivery Line Number No

5 Delivery Detail ID Line Number of the Item displayed against No

7 Document Tax Invoice Tax Invoice number of shipment No

8 Document Tax Invoice Tax Invoice Date of shipment No

9 Original Tax Invoice It would be manually populated during RMA No

10 Original Tax Invoice It would be manually populated during RMA No

India Tax Details UI Continued….

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Users can add the tax

OFI-GST Order to Cash Flow 13

User will be able to see

OFI-GST Order to Cash Flow 14

OFI-GST Order to Cash Flow 15