India localization urm in60106

Oracle India Localization Setup
User’s Reference Manual
Release 11i
December 2004

Oracle India Localization User’s Reference Manual, Release 11i
Copyright © 2003, Oracle Corporation. All rights reserved.
Primary Author: Vikram Prabakar L
Contributors: Narashima Pai, Srinivas Gadde, Pavan Raparla, Yadunath Vyloor, Srinath Raghu,
R.Sivaramakrishnan, Anand Krishnan
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Contents
Send Us Your Comments ______________________________________________________ xii
Preface _____________________________________________________________________ xiii
About this Localization Manual ________________________________________________ xiv
Audience for this Manual ______________________________________________________ xv
When you may Need to Use this Manual _________________________________________ xvi
How the Manual is Organized __________________________________________________ xvii
Conventions used in this Manual ______________________________________________ xviii
Associated Documents _______________________________________________________ xix
India Localization - Setup________________________________________________________ 1
Oracle Financials Base Implementation ____________________________________________ 2
Getting Started _______________________________________________________________ 3
System Administrator Setup _____________________________________________________ 4
Set of Books Setup____________________________________________________________ 5
General Ledger or Government General Ledger Setup ________________________________ 6
Accounts Receivables Setup ____________________________________________________ 7
Accounts Receivables Setup Steps _______________________________________________ 8
Accounts Payables Setup______________________________________________________ 10
Inventory Setup _____________________________________________________________ 11
Overview of Setting Up India Localization_________________________________________ 13
Setup Flowchart _____________________________________________________________ 14
Setup Checklist______________________________________________________________ 15
Setup Steps ________________________________________________________________ 16
India Local Inventory __________________________________________________________ 23
Miscellaneous Transactions Overview ___________________________________________ 24
Inventory & WIP Transactions Overview __________________________________________ 25
Setting Up Organization Information in India Localization -Inventory __________________ 26
Defining Organization Additional Information _______________________________________ 27
Defining Trading Registration Details _____________________________________________ 32
Defining Accounting Information for Organization ___________________________________ 33
Defining Organization Parameters _______________________________________________ 37
Defining Tax Calendar ________________________________________________________ 39
Defining Excise Invoice Generation ______________________________________________ 41
Defining Sub Inventory Locations________________________________________________ 44
Defining Item Information ______________________________________________________ 46
Setting Up Tax Information _____________________________________________________ 50
Defining Tax Names/Codes ____________________________________________________ 50
Defining Tax Categories _______________________________________________________ 58
Defining Item Category List ____________________________________________________ 62
Defining Manual BOM ________________________________________________________ 64
Managing India Localization - Inventory __________________________________________ 66
Transactions________________________________________________________________ 67
RG-I Register Entry ___________________________________________________________ 68
RG23 Register Entry __________________________________________________________ 71

Oracle India Localization
Apply Time Extension _________________________________________________________ 75
Master Organization RG Consolidation ___________________________________________ 76
Master Org RG Entries Request Set _____________________________________________ 77
View Register Balance_________________________________________________________ 79
View Item Definition___________________________________________________________ 80
Reports _____________________________________________________________________ 82
India-Tax List Report _________________________________________________________ 83
India - Excise Duty Claim for RMA Report _________________________________________ 86
India Local Purchasing_________________________________________________________ 88
Defining Tax Overview_________________________________________________________ 89
Basic Business Needs ________________________________________________________ 89
Major Features ______________________________________________________________ 89
Reports____________________________________________________________________ 93
Outside Processing Transaction - Overview _______________________________________ 94
Major Features ______________________________________________________________ 94
Reports____________________________________________________________________ 95
Receiving Corrections _________________________________________________________ 96
Overview___________________________________________________________________ 96
Mass Tax Update _____________________________________________________________ 97
Overview___________________________________________________________________ 97
Major Features ______________________________________________________________ 97
Transactions handled _________________________________________________________ 98
Setting Up India Localization-Purchasing ________________________________________ 101
Defining Supplier Additional Information__________________________________________ 102
Setting Up of profile options ___________________________________________________ 107
India Program to Execute Pending records _______________________________________ 108
India Receiving Transaction Processor __________________________________________ 110
Concurrent request for defaulting taxes on PO created based on a quotation ____________ 111
India - RG Period Balances Calculation __________________________________________ 112
Rounding Excise Amounts ____________________________________________________ 113
Managing Purchasing Transactions_____________________________________________ 115
Requisitions (Localized) ______________________________________________________ 116
RFQ (Localized) ____________________________________________________________ 119
Quotations (Localized) _______________________________________________________ 120
Purchase Orders (Localized) __________________________________________________ 121
PO Releases (Localized) _____________________________________________________ 124
Encumbrance Accounting_____________________________________________________ 125
PLA Manual Entry___________________________________________________________ 126
Outside Processing Transaction _______________________________________________ 128
Approve 57F(4) Dispatch _____________________________________________________ 130
Enter Manual 57F(4)_________________________________________________________ 134
Approval 57F(4) Receipts_____________________________________________________ 139
Using India – Control over Printing of OSP Challans ________________________________ 141
Receiving Corrections ________________________________________________________ 144
Using India - Mass Tax Update _________________________________________________ 145
Oracle India Localization – User’s Reference Manual iv

India - Mass Tax Recalculation_________________________________________________ 146
Update Tax Category ________________________________________________________ 149
Receipts (Localized) _________________________________________________________ 150
View Accounting____________________________________________________________ 155
View register balances _______________________________________________________ 157
Apply BOE to Receipts _______________________________________________________ 159
Unordered Receipt __________________________________________________________ 161
Match Unordered Receipt_____________________________________________________ 162
India Localization Receipt Details ______________________________________________ 163
In the Header Block _________________________________________________________ 163
In the Line Level ____________________________________________________________ 164
Claim CENVAT on Receipts___________________________________________________ 167
CENVAT Credit on Capital Goods ______________________________________________ 172
Accounting Entries on claiming credit on Capital goods______________________________ 172
Unclaim CENVAT ___________________________________________________________ 174
Returns to vendor___________________________________________________________ 176
Return to Vendor in the Case of a Trading Item____________________________________ 178
Return to SSI Vendor ________________________________________________________ 178
Inquiry _____________________________________________________________________ 180
Requisition Summary (Localized)_______________________________________________ 180
Quote Analysis (Localized)____________________________________________________ 182
Purchase Order Summary ____________________________________________________ 183
Reports ____________________________________________________________________ 186
India – Purchase Register Report_______________________________________________ 187
Receiving Accounts _________________________________________________________ 190
Purchases within the State ____________________________________________________ 193
Purchases outside the State___________________________________________________ 195
Purchases from Unregistered dealers ___________________________________________ 198
PLA Register Report_________________________________________________________ 200
Central Excise Reports _______________________________________________________ 202
RG 23A Part-I Report _______________________________________________________ 203
RG23 Part-II Report _________________________________________________________ 206
RG23C Part-I Report ________________________________________________________ 210
India-CENVAT Monthly return _________________________________________________ 212
India-CENVAT Monthly abstract________________________________________________ 214
RG-I Report _______________________________________________________________ 216
OSP Pending Dispatch Report _________________________________________________ 219
OSP Pending Receipt Report__________________________________________________ 221
OSP Stock Register _________________________________________________________ 224
Outside Processing Challan ___________________________________________________ 226
India Local Payables__________________________________________________________ 229
Tax Deduction at Source ______________________________________________________ 230
Overview__________________________________________________________________ 230
Basic Business Needs _______________________________________________________ 230
Major Features _____________________________________________________________ 231
Reports___________________________________________________________________ 234
eTDS Returns _______________________________________________________________ 235
Overview__________________________________________________________________ 235
Bill of Entry (BOE) ___________________________________________________________ 236
Overview__________________________________________________________________ 236
Oracle India Localization – User’s Reference Manual v

Major Features _____________________________________________________________ 237
Reports___________________________________________________________________ 237
Capture Personal Ledger Account (PLA) Payment_________________________________ 238
Major Features _____________________________________________________________ 238
Tracking of ST Forms Issues __________________________________________________ 239
Overview__________________________________________________________________ 239
Third Party Taxes – Additions to Fixed Assets____________________________________ 240
Setting Up India Localization - Payables _________________________________________ 241
Defining Organization TDS Information __________________________________________ 242
Defining Income Tax Authority _________________________________________________ 243
Defining TDS Sections _______________________________________________________ 244
Defining TDS Taxes _________________________________________________________ 245
Defining TDS Year __________________________________________________________ 247
Defining Supplier Additional Information–TDS Details _______________________________ 248
Defining Customs Authority ___________________________________________________ 250
Defining BOE Agent _________________________________________________________ 251
Defining Excise Authority _____________________________________________________ 252
Setting Up Concurrent Programs _______________________________________________ 253
Setting Incompatibilities to Concurrents in India Localizations - Payables ________________ 255
Managing TDS Transactions___________________________________________________ 256
Invoices with TDS Codes _____________________________________________________ 257
TDS Certificate Generation____________________________________________________ 259
Generating eTDS Returns ____________________________________________________ 261
BOE Invoices _______________________________________________________________ 263
BOE Line Details ___________________________________________________________ 265
BOE write off ______________________________________________________________ 266
PLA Invoices/Payment________________________________________________________ 268
Using Sales Tax Declaration Forms – Issue Tracking ______________________________ 270
Recording details of Sales Tax Declaration Forms__________________________________ 271
Viewing Issued Forms _______________________________________________________ 276
Generating Records for Sales Tax Issue Tracking __________________________________ 278
India - FA Mass Additions _____________________________________________________ 280
Define Invoice Tolerance Limits ________________________________________________ 281
View/ Resubmit/ Delete Error Tax Lines__________________________________________ 283
Reports ____________________________________________________________________ 285
Form 16A Report ___________________________________________________________ 286
TDS at prescribed rate Report _________________________________________________ 288
TDS at Lower rates Report____________________________________________________ 291
India -Cash/Bank Book Report _________________________________________________ 293
India-Creditors Ledger Report _________________________________________________ 296
India-Creditors Trial Balance Report ____________________________________________ 299
India-Statement of Account for Suppliers _________________________________________ 301
BOE Written off Report_______________________________________________________ 303
India-Related Invoices Report _________________________________________________ 305
India Local Order Management _________________________________________________ 307
Oracle India Localization – User’s Reference Manual vi

Sales Order India Localized Overview ___________________________________________ 308
Major Features _____________________________________________________________ 309
Ship Confirm India Localized __________________________________________________ 311
Overview__________________________________________________________________ 311
Major Features _____________________________________________________________ 312
Reports___________________________________________________________________ 312
Sales Order Returns India Localized Overview____________________________________ 313
Major Features _____________________________________________________________ 314
AR 3A Form Receipt Tracking - Overview ________________________________________ 315
Reports___________________________________________________________________ 315
Concurrents ________________________________________________________________ 316
Setting Up India Localization – Order Management ________________________________ 318
Defining Allow Negative Balance in PLA – Organization Additional Information ___________ 319
Excise Invoice Generation – Organization Additional Information ______________________ 321
Defining Sub Inventory Locations_______________________________________________ 324
Defining Customer Additional Information ________________________________________ 326
Defining Bond Register_______________________________________________________ 329
Managing Order Management Transactions ______________________________________ 332
Transactions Sales Order (Localized) ___________________________________________ 333
Tax Details India Localization - Sales Order_______________________________________ 337
Returns (Localized) _________________________________________________________ 339
RMA Return/Receipt (Localized) _______________________________________________ 340
RMA Return/Receipt - Trading Item _____________________________________________ 343
Customer Returns Under 173(H) _______________________________________________ 344
Use of LC Functionality ______________________________________________________ 346
Shipment Confirmation (Localized)______________________________________________ 352
Bond Register______________________________________________________________ 355
Excise Exempted Sales Orders ________________________________________________ 358
AR3 A Form Receipts________________________________________________________ 358
Reports ____________________________________________________________________ 361
Commercial Invoice _________________________________________________________ 361
India Local Receivable ________________________________________________________ 364
Transactions (Localized) Overview _____________________________________________ 365
Major Features _____________________________________________________________ 366
Reports___________________________________________________________________ 368
Tracking of ST Forms Receipts ________________________________________________ 369
Reports___________________________________________________________________ 369
AR 3A Form Receipt Tracking - Overview ________________________________________ 370
Reports___________________________________________________________________ 370
RG Consolidation - Overview __________________________________________________ 371
Major Features _____________________________________________________________ 371
Oracle India Localization – User’s Reference Manual vii

Supplementary Transactions - Overview_________________________________________ 372
Major Features _____________________________________________________________ 372
Reports___________________________________________________________________ 373
Duty Drawback Processing____________________________________________________ 374
Major Features _____________________________________________________________ 374
TDS Certificates Received - Overview ___________________________________________ 376
Major Features _____________________________________________________________ 376
Reports___________________________________________________________________ 376
Setting Up India Localization - Receivables ______________________________________ 377
Defining Bond Register_______________________________________________________ 378
Negative Balance in PLA – Organization Additional Information _______________________ 381
Excise Invoice Generation – Organization Additional Information ______________________ 382
Customer Additional Information _______________________________________________ 385
Setting Up Transaction Sources________________________________________________ 391
Setting Up Concurrent Programs _______________________________________________ 396
Setting Up ‘India – Local concurrent for processing order lines to AR’ Program ___________ 396
India – Importing Excise Invoice Numbers to AR – _________________________________ 398
Setting Up ‘India – ST Forms Receipt Processing’ Program: __________________________ 399
Managing Receivables Transactions ____________________________________________ 401
Transactions (Localized)______________________________________________________ 402
Reprocessing Errored OM Tax Records__________________________________________ 408
Using Sales Tax Declaration Forms – Receipt Tracking ____________________________ 410
Recording details of Sales Tax Declaration Forms: _________________________________ 411
Viewing Received Forms _____________________________________________________ 416
AR3 A Form Receipts Tracking_________________________________________________ 419
RG Consolidation____________________________________________________________ 422
Supplementary transactions___________________________________________________ 424
Run Concurrent Request _____________________________________________________ 432
TDS Certificates Received_____________________________________________________ 440
Inquiry____________________________________________________________________ 442
Transaction Summary _______________________________________________________ 442
Reports ____________________________________________________________________ 443
Commercial Invoice _________________________________________________________ 444
ST Form Customer Report ____________________________________________________ 446
Total Sales Report __________________________________________________________ 449
India -Debtors Ledger Report __________________________________________________ 451
Debtors Trial Balance Report __________________________________________________ 453
Supplementary Transaction Details Report(AR)____________________________________ 455
Supplementary Invoice Consolidation Report(AR) __________________________________ 457
Status of AR3 A form Report __________________________________________________ 459
Duty Draw Back Report ______________________________________________________ 462
Journal Voucher Report ______________________________________________________ 465
India -Cash/Bank Book Report _________________________________________________ 467
India – Service Tax Report ___________________________________________________ 469
Handling Value Added Tax (VAT) _______________________________________________ 471
VAT Setup ________________________________________________________________ 471
VAT Defaultation & Calculation ________________________________________________ 473
Oracle India Localization – User’s Reference Manual viii

VAT Accounting & Recoverability_______________________________________________ 474
VAT Recording & Reporting ___________________________________________________ 474
VAT Implementation – Migration Solution ________________________________________ 475
Handling Education Cess _____________________________________________________ 477
Tax Definition ______________________________________________________________ 478
Cess Defaulting & Calculation _________________________________________________ 480
Cess Accounting & Recoverability ______________________________________________ 483
Cess Recording & Reporting __________________________________________________ 486
Trading Functionality _________________________________________________________ 487
Trading Functionality – Overview_______________________________________________ 488
Major Features ______________________________________________________________ 488
Match Receipts Localized Overview_____________________________________________ 490
Major Features _____________________________________________________________ 490
Trading Inventory Organization Set Up __________________________________________ 492
Trading Sub inventory Location Set up___________________________________________ 494
Trading Item Set Up _________________________________________________________ 495
Shipment Register Set Up ____________________________________________________ 496
Transactions________________________________________________________________ 497
Matching Receipts For Trading Item_____________________________________________ 498
Unmatching Receipts - For Trading Item _________________________________________ 504
Manual RG 23 D Entry _______________________________________________________ 505
Trading Accounting __________________________________________________________ 508
Receipt of Material __________________________________________________________ 508
Delivery of Material__________________________________________________________ 508
On Return to Vendor ________________________________________________________ 509
Receivables Invoice _________________________________________________________ 509
Reports ____________________________________________________________________ 510
RG23D Register Report ______________________________________________________ 510
India Local Fixed Assets ______________________________________________________ 513
Fixed Asset Depreciation Calculation Overview ___________________________________ 514
Major Features _____________________________________________________________ 514
Reports___________________________________________________________________ 515
Setting up India Localization - Fixed Asset _______________________________________ 516
Block of Assets_____________________________________________________________ 516
Define Depreciation Periods___________________________________________________ 518
Opening WDV Balances______________________________________________________ 520
Transactions________________________________________________________________ 522
Asset Additions_____________________________________________________________ 522
Income Tax Depreciation Calculations ___________________________________________ 524
Run Depreciation ___________________________________________________________ 524
Reports ____________________________________________________________________ 525
India Income Tax Fixed Assets Schedule_________________________________________ 526
Depreciation for Entire Period__________________________________________________ 528
Accounting Entries ___________________________________________________________ 530
Accounting entries in India Local Inventory ______________________________________ 531
Oracle India Localization – User’s Reference Manual ix

On Receipt of Material _______________________________________________________ 531
On Claiming CENVAT credit __________________________________________________ 531
Creation of Invoice for accounting III rd party taxes ________________________________ 531
Delivery of Material For Average Costing Organization ( Bonded Warehouse Sub Inventory) 532
Delivery of Material For Standard Costing Organization ( Bonded Warehouse Sub Inventory) 532
Delivery of Material (Duty paid Sub Inventory-non bonded) ___________________________ 532
Delivery of Material (Bonded/Duty paid Sub Inventory) ______________________________ 533
Delivery of expense item to Bonded/Duty paid Sub Inventory _________________________ 533
Return to Vendors ___________________________________________________________ 533
Return to Receiving(Bonded Sub Inventory) ______________________________________ 533
On Return from Inventory to Receiving Inspection (Localization entries)_________________ 534
On Return to Receiving Inspection to Vendor (by Base Product)_______________________ 535
On Return to Receiving Inspection to Vendor _____________________________________ 535
On Return to Vendor in the year of Purchase______________________________________ 535
On Return to Vendor a year after Purchase (After claim of 100% CENVAT Credit)_________ 535
Accounting entries on claiming CENVAT ________________________________________ 536
Accounting entries on Claiming CENVAT on inputs_________________________________ 536
Accounting entries on Claiming CENVAT on capital goods ___________________________ 536
Accounting entries on claiming the balance credit on capital goods_____________________ 536
Accounting entries regarding OSP Transaction ___________________________________ 537
While sending the material through 57 F (4) Challan _______________________________ 537
On receipt of goods cleared under 57 F (4) Challan_________________________________ 537
RMA Receipts_______________________________________________________________ 538
RMA Receipts into a Bonded Warehouse ________________________________________ 538
RMA Receipts considered as ‘Production Input’____________________________________ 538
RMA Receipts considered as ‘Finished Goods Return’ ______________________________ 538
RMA Receipts considered as ‘Scrap’ ____________________________________________ 538
Accounting entries related to AP invoices _______________________________________ 539
On Matching the Payable Invoice with PO/Receipt _________________________________ 539
On Creation of Credit Memo at the time of approving the created Regular Invoice for TDS
Deduction _________________________________________________________________ 539
On Creation of TDS Invoice at the time of approving the created Regular Invoice for TDS
deduction _________________________________________________________________ 539
Accounting entries related to Bill of Entry _______________________________________ 540
On Approval of BOE Invoice___________________________________________________ 540
On Payment of the BOE Invoice________________________________________________ 540
On writing of the customs duty paid _____________________________________________ 540
Accounting entries for PLA Payments __________________________________________ 540
On Approval of PLA Invoice ___________________________________________________ 540
On Payment of PLA Invoice___________________________________________________ 540
Ship Confirmation ___________________________________________________________ 541
Accounting entries on Ship Confirmation _________________________________________ 541
Accounting entries in AR _____________________________________________________ 542
On Invoicing in AR __________________________________________________________ 542
On saving AR Transactions ___________________________________________________ 542
On completion of an AR Transaction____________________________________________ 542
Raising Credit Memo from AR Transactions ______________________________________ 542
For debiting duty under Rule 6 of The CENVAT Credit Rules (Old Rule 57 CC) ___________ 542
Accounting entries for RG consolidation Transactions_____________________________ 544
On setting off the CENVAT credit with PLA Debits _________________________________ 544
On payment of excise duty (On approval of the PLA Invoice) _________________________ 544
Oracle India Localization – User’s Reference Manual x

Accounting entries for Internal Sales Order Transactions___________________________ 545
Excise Invoice Generation ____________________________________________________ 545
Issue Transaction (In Transit Transfer)___________________________________________ 545
Receipt Transaction (In Transit Transfer)_________________________________________ 545
Direct Transfer _____________________________________________________________ 546
CENVAT Entries (If the Receiving Unit is Bonded) _________________________________ 546
Delivery (If the Receiving Unit is Non-Bonded/ Trading) _____________________________ 546
Process flow ________________________________________________________________ 547
Duty Drawback Process ______________________________________________________ 549
Support for Trading Process___________________________________________________ 551
Descriptive Flex fields used in India Localization __________________________________ 553
Oracle India Localization – User’s Reference Manual xi

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.
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Preface
The Oracle India Localization User’s Reference Manual provides information on how to use Oracle
India Localization.
The following sections are included in this preface:
• About this Localization manual
•
• Audience for this manual
• When you may need to use this manual
• How the manual is organized
• Conventions used in this manual
• Associated Documents
• About Oracle
• Feedback

About this Localization Manual
The Oracle Applications-R11-i India Localization User Reference Manual includes information you
need to use India Localization effectively. It is organized for easy access to detailed information about
each of the following:
• Overview and Refernce information on India Localization
• India Localization forms
• India Localization functions and features
• Process flow
• Localization Accounting entires
• India Localization Reports
This manual is to be referred in conjunction with Oracle Applications -R11-i Reference Manuals of the
respective modules.
India Localization of the Oracle Applications for Release 11-i addresses the needs of Indian Industry
relating to Excise Duty, Sales Tax, Income Tax, Tax Deducted at Source, Trading Activity , Raising
Supplementary Invoices, Block of Assets as per Indian Income Tax Act, Service Module, Claim duty
draw back and Reports.
The general requirements have been incorporated in the scope of this localization, however, industry
or product specific issues are not addressed. Oracle Purchasing, Oracle Payables, Oracle Inventory,
Oracle Order Management, Oracle Receivables, Oracle Fixed Assets, Oracle Service are the
modules integrated with this release of India Localization.
There will be a new responsibility created for each of associated Standard Application Responsibility
Oracle Inventory India Local Inventory
Oracle Purchasing India Local Purchasing
Oracle Payables India Local Payables
Oracle Order Management India Local Order Management
Oracle Receivables India Local Receivables
Oracle Fixed Assets India Local Fixed Assets
Localized responsibility have additional menus created covering all the functions of Standard
Applications and additional functions introduced in Localization. User need to login to Localization
Responsibility to get the benefit of Localization functionality wherever applicable. The menu call in
Localization responsibility hits Localization functions with a facility to call/return the control back to
standard functionality.

Audience for this Manual
This manual is a complete source of information about India Localization and designed to provide
useful guidance and assistance to:
• Consultants implementing India Localized version of Oracle Applications
• Key user team of Oracle Applications
• Accountants
• Accounting Mangers
• Auditors
• Chief Financial Officers
• Controllers
• Data Entry Clerks
• Financial Analysts
• Line Mnagers
• MIS Professionals
The Oracle Applications India Localization manual assumes you have a basic understanding of
Localization requirements in India. It also assumes you have a basic familiarity with Oracle Financial
Applications. If you have never used Oracle Applications, we suggest you to attend one or some of
the Oracle Financials training classes available through Oracle Education Services.

When you may Need to Use this Manual
You can use this manual as a complement to the online help feature. Online help gives you instant
access to detailed explanation of each form and respective fields on that form.
The manual also provides valuable additional information on features provided under the India
Localization of Oracle Applications 11.5.8, such as examples of reports and listings etc.

How the Manual is Organized
This manual is organized according to the menu structure and includes the following chapters.
• Chapter 1 India Localization Setup
• Chapter 2 India Local Inventory
• Chapter 3 India Local Purchasing
• Chapter 4 India Local Payables
• Chapter 5 India Local Order Management
• Chapter 6 India Local Receivables
• Chapter 7 India Trading Functionality
• Chapter 8 India Local Fixed Assets
• Chapter 9 Accounting Entries
• Chapter 10 Process Flow
• Chapter 11 Descriptive Flexfields used

Conventions used in this Manual
This manual uses the following conventions to make it easy to read and understand:
Oracle Applications’ form descriptions include a detailed explanation of each important field on a
form. We always begin a field description with a heading, which also lists field characters such as
Required or Optional. We also tell you which Oracle Applications features, like Quick fields, you can
use when your cursor is in that field.
We display all field headings as illustrated below:
Field
Description
Type Action Description
Start Date (Required)
PICK EDIT
HELP
The date from which you need to start an
activity.
In the above example, the field is Start, the field characteristic is Required, the available features are
PICK(Quick Pick) and HELP and the decryption is date from which you need to start an activity.
Field Description
Oracle Applications’ form descriptions give you the key characteristics of each field, to give you a
quick overview of the way you use a field. We use any or all of the following phrases to describe a
field’s key characteristics.
Required: Valid value for this field need to be entered before you navigate to the
next filed. Other words Mandatory field for which the valid data must be entered.
Optional : Optional fields, data can or can not be entered by the user depending
upon his requirements.
Conditionally: Under some circumstances, you need to enter a valid data before you
Navigate to the next field.
Display only: Oracle Application uses this field to display information and you cannot
Change information in this field. When a display only field is not wide enough to show its entire
contents, you can move your cursor into that field to see its entire contents by scrolling it or pressing
Field Edit.
Default: Oracle Applications automatically enters a default or likely value in this
Field. Oracle Applications uses this value unless you override it by entering another valid field value.
Conditionally Default: Under some circumstances Oracle Applications automatically enters a default
value or likely value in this field. Oracle Applications uses this value unless you override it by entering
another valid field value.
Quick Pick Source: The values you enter into this field will appear on QuickPick lists in
Other Oracle Applications forms for the module you are using.

Associated Documents
• Oracle Inventory Reference Manual- Release 11-i
• Oracle Purchasing Reference Manual - Release 11-i
• Oracle Payables Reference Manual- Release 11-i
• Oracle Order ManagementReference Manual- Release 11-i
• Oracle Receivables Reference Manual- Release 11-i
• Oracle Fixed Assets Reference Manual- Release 11-i
• Oracle Service Module Reference Manual- Release 11-i
All Oracle Applications’ forms share a number of basic features, such as QuickPick and Help, which
helps you, complete business tasks more easily. Because these features are context-sensitive, your
ability to use them depends upon the field your cursor is in. Oracle Applications displays an
uppercase word, called a lamp, at the bottom of your terminal screen to tell you when these features
are available. We also tell you which of these features are available in each field description; in much
the same way we summarize a field’s characteristics.
PICK - The PICK lamp indicates that you can use QuickPick to choose from a list of values for your
current field. The QuickPick pop-up window displays only valid values, helping you enter valid data in
a field. Use Field QuickPick to invoke QuickPick.
HELP - The HELP lamp indicates that you can get help information for this field. Help information is
context-sensitive, so you get different help when your cursor is in different fields. The HELP lamp
lights almost continuously because we always offer you context-sensitive help. You can always use
Help Screen to view help for the current form. You can also frequently use Help Zone or Help
Field to see help for the current zone or field.
EDIT - The EDIT lamp indicates that you can invoke the field editor to display the entire contents of
the current field in a pop-up window. If a field is Display only, you can use the field editor to view but
not edit the field value. Otherwise, you can use the field editor to change the field value. Use Field
Edit to invoke the field editor.
ZOOM - The ZOOM lamp indicates that you can interrupt your work on this form, make a side trip to
another form to view or change information, and then return to the original form and pick up where
you left off. If you change any information when you zoom, you can see your changes when you
return to your original form. Use Other Zoom to invoke Zoom.
Oracle India Localization – User’s Reference Manual xix

India Localization - Setup
This chapter explains setups that need to be completed before using India Localization. It discusses
the following concepts:
• Mandatory Base Applications Setups
• India Localizations Setups
• India Localizations Setup Flowchart
• India Localizations Setup Steps - Overview
Oracle India Localization – User’s Reference Manual 1

Oracle Financials Base Implementation
This topic lists the implementation steps for System Administration, Set of Books, General Ledger
(GL), Accounts Payable (AP), and Accounts Receivable (AR) modules. Refer to the respective
module's User's Guide for more details on the Implementation steps. If there is an integration specific
instruction for the step, then it appears under the step and path. Otherwise, just the step is shown.
The intent of this section is to highlight dependencies between Oracle Financials and Oracle India
Localization. It is not to rephrase or replace respective module's User's Guide.
The following topics are covered:
• Getting Started
• System Administrator Setup
• Set of Books Setup
• General Ledger or Government General Ledger Setup
• Accounts Receivables Setup
• AR Flexfield Setup
• AR Descriptive Flexfield Setup
• Accounts Receivables Setup Steps
• Accounts Payables Setup

Getting Started
The following list provides the recommended order for installing and implementing your software for
Oracle Financials 11i and India Localization 11i.To ensure a smooth implementation of the
integration, follow this order:
1. Installation of Oracle Financials 11i. Refer to one of the following Installation
Manuals:
Oracle Applications Installation Manual for UNIX, Release 11i
Oracle Applications Upgrade Preparation Manual for UNIX, Release 11i
2. Installation of India Localization 11i. Refer to one of the following Installation Instructions:
India Localization Patch Installation Instructions
3. Implementation of Multiple Organizations Setup is a pre-requisite for India Localization. To
implement multiple organizations setup, refer to:
Multiple Organizations in Oracle Applications Release 11i manual.
For Step 2, Define Sets of Books, refer to the Set of Books Setup topics in this manual for integration
dependencies. For Step 11, Implement the Application Products, refer to the System Administration
Setup, General Ledger (GL) Setup, Accounts Payable (AP) Setup, and Accounts Receivable (AR)
Setup topics in this manual for integration dependencies.

System Administrator Setup
Prior to implementing, you must complete the implementation of Multiple Organizations Setup. If you
are implementing the multiple organizations setup, then refer to:
Multiple Organizations in Oracle Applications Release 11i manual.
For Step 2, Define Sets of Books, refer to the Set of Books Setup topics in this manual for integration
dependencies. For Step 11, Implement the Application Products, refer to the System Administration
Setup, General Ledger (GL) Setup, Accounts Payable (AP) Setup, and Accounts Receivable (AR)
Setup topics in this manual for integration dependencies.
1. Create an Oracle Applications User to Complete Setting Up (Required) Navigator:
Security User Define
2. Create New Responsibilities (Optional)
3. Implement Function Security (Optional)
4. Create Additional Users (Required)
5. Set Up Your Printers (Required)
6. Specify Your Site-level and Application-level Profile Options (Required with
7. Defaults)
8. Profile System
9. Define Your Concurrent Managers (Optional)
10. Define Report Sets (Optional)
11. Set Up Audit Trail (Optional)
12. Modify Language Prompts (Optional)
13. Modify Territory LOV Values (Optional)

Set of Books Setup
• Define Your Chart of Accounts (Accounting Flexfields) (Required)
• Define Your Accounting Flexfield Combinations (Optional)
• Define Your Calendar Period Types (Required with Defaults)
• Define Your Calendar Periods (Required)
• Define Your Transactions Calendar (ADB) (Optional)
• Define Your Currencies Note
(Required with Defaults)
Setup Currencies Define
• Define Set of Books (Required)
• Assign Set of Books to a Responsibility (Required)
• Define Daily Conversion Rate Types (Required with Defaults)
• Define Your Rates (Optional)
Note
• The Functional Currency should always be INR

General Ledger or Government General Ledger Setup
• Define your Set of Books (Required)
• Define Journal Entry Sources (Required With Defaults)
• Define Journal Entry Categories (Required with Defaults)
• Define Suspense Accounts (Optional)
• Define Inter-company Accounts (Optional)
• Define Summary Accounts (Optional)
• Define Statistical Units of Measure (Optional)
• Define Historical Rates (Optional)
• Define Document Sequences (Optional)
• Set up Automatic Posting (Optional)
• Define Additional Encumbrance Types (Optional)
• Define System Controls (Required With Defaults)
• Define Budgetary Control Groups (Optional)
• Set Profile Options (Required)
• Open and Close Accounting Periods (Required)

Accounts Receivables Setup
Note: If you do not have Accounts Receivables installed, skip this section.
AR Descriptive Flexfield Setup
• Setup Descriptive Flexfields for the following:
• Line Transaction Flexfield for AutoInvoicing
• Customer for Customer Entry
• Transaction Type for Debit/Credit Memo Inventory Adjustment

Accounts Receivables Setup Steps
Note: If you do not have Accounts Receivables installed, skip this section.
• Define Your Set of Books (Required)
• Decide How to Use the Account Generator (Required)
• Define Your System Item Flexfield Structure (Required)
• Define Your Organizations (Required)
• Define Your Territory Flexfield (Optional)
• Define Your Sales Tax Location Flexfield Structure (Required with Defaults)
• Define Flexfield Address Formats (Optional)
• Maintain Countries and Territories (Optional)
• Define Your Transaction Flexfield Structure (Optional)
• Define Your AutoCash Rule Sets (Optional)
• Define Your QuickCodes (Optional)
• Define Your AutoInvoice Line Ordering Rules (Optional)
• Define Your AutoInvoice Grouping Rules (Optional)
• Define Your System Options (Required)
• Define your Payment Terms (Required with Defaults)
• Define Your Accounting Rules (Optional)
• Open Your Accounting Periods (Required)
• Define Your AutoAccounting (Required)
• Set Up Cash Basis Accounting (Optional)
• Define Your Transaction Types (Required with Defaults)
• Define Your Transaction Sources (Required)
• Define Your Collectors (Required with Defaults)
• Define Your Adjustment Approval Limits (Required)
• Define Your Remittance Banks (Required)
• Define Your Distribution Sets (Optional)
• Define Your Receivables Activities (Required)
• Define Your Receipt Classes (Required)
• Define Your Payment Methods (Required)
• Define Your Receipt Sources (Required)
• Define Your Aging Buckets (Required with Defaults)
• Define Your Statement Cycles (Optional)
• Define Your Statement Messages (Optional)
• Define Your Dunning Letters (Optional)
• Define Your Dunning Letter Sets (Optional)
• Define Your Territories (Optional)
• Define Your Salespeople (Required with Defaults)
• Define Your Profile Options (Required)
• Define Your Tax Codes.
• Define ‘Localization’ Tax Code. This code has to be attached to all Items &
Customers for whom India Localization Taxes have to default. This tax code should not
have an end date entered against it.
• Define Your Customer Profile Classes (Required with Defaults)
• Define Your Customers (Required)
• Define Your Remit-To Addresses (Required)
• Define Your Customer Relationships (Optional)
• Define Your Customer Banks (Optional)
• Define Your Lockboxes (Optional)
• Define Your Transmission Format (Optional)

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

Accounts Payables Setup
Note: If you do not have Accounts Payables installed, skip this section.
• Install or upgrade Payables (Required)
• Create application user sign-ons and passwords (Required)
• Define your Chart of Accounts (Required)
• Define your Accounting Period Types and Accounting Calendar Periods (Required)
• Enable Currencies that you plan to use (Optional)
• Define a Set of Books (Required)
• Assign your Set of Books to a Responsibility (Required)
• To enter foreign currency transactions, define additional Rate Types, and enter your Daily
Rates (Optional)
• Choose a Primary Set of Books (Required)
• Use the Application Developer responsibility to set the GL Set of Books ID profile option to
Updateable (Required)
• Use the System Administrator responsibility to set the GL Set of Books Name profile option. If
you are performing a single set of books installation, set the option for the Oracle Payables
application. If you are performing a multiple set of books installation, set the option for each
unique combination of organization and responsibility (Required)
• Define Payment Terms (Required)
• Setup Invoices Payment Terms
• Define Your Purchase Order Matching Tolerances (Optional)
• Define Invoice Approval Codes (Required With Defaults)
• Define Distribution Sets (Optional)
• Define Purchasing Lookups (Required With Default)
• If you want to use Automatic Interest Calculation, define Payment Interest Rates (Optional)
• If you want to use Payables to enter employee expense reports, create templates for entering
expense reports (Optional)
• If you use Payables to enter employees in your organization, enter employee QuickCodes
(Optional)
• Enter Locations (Required)
• Enter Employees (Conditionally Required)
• If or Oracle Purchasing is installed, you must define at least one Inventory Organization
before defining Financials Options (Conditionally Required)
• Define Financials options (Required)
• Define Payables options (Required)
• Define Payment Programs (Required with Defaults)
• Define any additional Payment Formats (Optional)
• Update country and territory information and assign flexible address formats (Optional)
• Define Bank Accounts (Required)
• Open Your Accounting Periods (Required)
• Define Request Sets (Optional)
• Define the format for the Expense Distribution Detail Report, and define the format for the
Invoice Aging Report (Optional)
• Set up Print Styles and Drivers for the Supplier Mailing Labels Report (Optional)
• Define special calendars for key indicators, and recurring invoices (Optional)
• Implement Budgetary Control in General Ledger (Optional)
• Implement Sequential Voucher Numbering (Optional)
• Define Descriptive Flexfields (Optional)

Inventory Setup
• Define Items Flexfield (Required)
• Define Item Categories Flexfield (Required)
• Define Item Catalog Group Flexfield (Required),
• Define Stock Locators Flexfield (Required)
• Define Account Aliases Flexfield (Required)
• Define Sales Orders Flexfield (Required)
• Define Locations Note
(Optional)
• Define Employees (Optional)
• Define Organization Calendar (Optional)
• Define Organizations Note
(Required)
• Define Organization Parameters (Optional)
• Change Organizations (Required)
• Define Intercompany Relations (Required)
• Define Receiving Options (Optional)
• Define Picking Rules (Optional)
• Define ATP Rules (Optional)
• Define Planners (Optional)
• Define Unit of Measure Classes (Required)
• Define Unit of Measure (Optional)
• Define Unit of Measure Conversions (Optional)
• Define Subinventories (Required)
• Define Stock Locators (Optional)
• Define Item Attribute Controls (Required)
• Define Categories (Required)
• Define Category Set (Required)
• Define Default Category Sets (Required)
• Define Statuses (Required)
• Define Item Catalog Groups (Optional)
• Define Item Types (Optional)
• Define Item Templates (Optional)
• Define Items (Optional)
• Define Cross–Reference Types (Optional)
• Define Item Delete Constraints (Optional)
• Define Cost Types (Required)
• Define Cost Activities (Optional)
• Define Material Sub–Elements (Optional)
• Define Material Overheads (Optional)
• Define Default Material Overhead Rates (Optional)
• Define Freight Carriers (Optional)
• Define Organization Shipping Network (Optional)
• Define Shipping Methods (Optional)
• Define Movement Statistics Parameters (Optional)
• Define Economic Zones (Optional)
• Define Account Aliases (Optional)
• Define Transaction Source Types (Optional)
• Define Transaction Types (Optional)
• Define Transaction Reasons (Optional)
• Define Purchasing Options (Optional)
• Define Accounting Periods (Required)
• Request Interface Managers (Optional)

• Set Profile Options (Required)
• Define Container Types (Optional)
• Define Commodity Codes (Optional)
• Define Customer Items (Optional)
• Define Customer Item Cross References (Optional)
• Define Notification List (Optional)
• Define Shortage Parameters (Optional)
• Define Kanban Pull Sequences (Optional)
Note
Ensure that the Organizations are assigned to Locations before you setup Additional Organization
Information for Localization.

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

Setup Flowchart
To assist you to easily setup your India Localization application, a flowchart is provided in figure 1
Setup Flowchart. Some of the steps outlined in this flowchart are required and some are Optional.
Required step with Defaults means that the setup functionality comes with pre–seeded, default
values in the database. However, to ensure a successful setup, you need to review those defaults
and decide whether to change them to suit your business needs. If you need to change the default
values, you should perform the corresponding setup step. You need to perform Optional steps only if
you plan to use the related feature or complete certain business functions.
Figure 1 Setup Flowchart
Step 5
Excise Invoice
Generation
Step 11
Manual BOM
Step 1
Define
Organization
Additional
Information
Step 2
Organization
Trading Info
Step 3
Organization
Accounts
Information
Step 4
Tax Calendar
Step 10
Item Categories
Step 9
Tax Category
Step 8
Tax Codes
Step 7
Item Localization
Information
Step 6
Sub-Inventory
Locations
Step 12
Supplier
Additional
Information
Step 13
Organization TDS
Information
Step 14
Income Tax
Authority
Step 15
TDS Sections
Step 16
TDS Tax Codes
Step 17
TDS Year
Step 18
Supplier
Additional
Information - TDS
Details
Step 19
Customs Authority
Step 20
BOE Agent
Step 21
Excise Authority
Step 22
Bond Registers
Step 23
Assessable Price
Lists
Step 24
Customer
Additional
Information
LEGEND
Required Step Optional Step
ORACLE INDIA LOCALIZATION
Required Step
with Defaults

Setup Checklist
The following table lists setup steps and a reference to their location within the Application. After you
log on to Oracle Applications, complete these steps to implement Oracle India Localization:
Oracle India Inventory
Step No Required Step Title
Step 1 Required Define Organization Additional Information
Step 2 Optional Define Trading Registration Details
Step 3 Required Define Accounts Information for Organization
Step 4 Required Define Tax Calendar
Step 5 Optional Define Excise Invoice Generation
Step 6 Required Define Sub Inventory Locations
Step 7 Required Define Item Localization Information
Step 8 Required Define Tax Codes
Step 9 Required Define Tax Categories
Step 10 Required Define Item Categories
Step 11 Optional Define Manual BOM
Oracle India Purchasing
Step 12 Required Define Supplier Additional Information
Oracle India Payables
Step 13 Required Define TDS Related Information for the Organization
Step 14 Required Define Income Tax Authority
Step 15 Required Define TDS Sections
Step 16 Required Define TDS Tax Codes
Step 17 Required Defining TDS year Information
Step 18 Required Define TDS Details for Suppliers
Step 19 Required Define Customs Authority
Step 20 Required Defining BOE Agent
Step 21 Required Define Excise Authorities
Oracle India Order Management
Step 22 Required Define Bond Registers
Step 23 Optional Define Assessable Price Lists
Oracle India Receivables
Step 24 Required Customer Additional Information

Setup Steps
Step 1 Define Organization Additional Information
You must define the structure of your Inventory organizations and locations, which would be reporting
to the Local Tax Authorities. The information defined at this level would be the basis for Recording,
Reporting and accounting of the location taxes. Apart from this the user would also define the
organization registration details with Excise, Customs, Sales Tax and TDS authorities.
This information is available in additional organization information are the basic data for all India
Localization activities and accounting. The Organization and Locations defined through Common
Application would be available for setup. While creating the additional organization information, it is
mandatory to create two sets of records, one at null location level and another with location.
The master child relationship among the organization and location would be used only for
consolidation of excise registers at Master organization level.
See Also: Defining Organization Additional Information, India Local Inventory Chapter
Step 2 Define Organization Trading Information
You would enter the information of the organizations registered under the Central Excise Rules as a
Dealer/Depot. Navigate to Trading Information Tab of the Additional Organization Information to enter
Excise Registration details of a Dealer.
The information entered here would be printed on all relevant reports and invoices raised from this
Organization.
You would ensure that no values are entered in any of the fields falling under the Excise region of the
Tax Information tab of the additional organization information. Any value entered in this region would
categorize this organization as a Manufacturing Organization.
See Also: Defining Trading Registration Details, India Local Inventory Chapter
Step 3 Define Organization Accounting Information
You would assign the appropriate General Ledger Accounts to which the Localization Taxes have to
be posted in the Account Information tab of the Organization Additional Information screen. The
values entered in the Parameters region would determine the behavior of localization taxes calculated
for certain transactions.
You will have to enter the register preferences. The excise register that should be hit when you ship
excisable goods would depend on the preferences assigned against each register. The register with
the lowest value would be considered first. The next register would be considered only when the
excise liability arising from the transaction exceeds the current register balance.
The only deviation from this logic would be when you check the ‘Allow have balances in PLA’ field. If
this field is checked, then the PLA, when preferred, would be hit, even-though, the duty liability is
higher then the available balance in PLA.
See Also: Defining Accounting Information for Organization, India Local Inventory Chapter

Step 4 Define Tax Calendar
Localization taxes would be calculated only when the transaction falls within the active year. You can
keep only one year active at a time. The Tax Calendar defined for an Organization NULL location
would be defaulted to the other Organization Additional Information records created for the locations
with this organization.
See Also: Defining Tax Calendar, India Local Inventory Chapter
Step 5 Define Excise Invoice Generation
This feature can be used to automate the Excise Invoice document sequence generation. You can
setup a document sequence for the combination of Transaction Type, Order/Invoice Type and
Register Type. You can define an alpha/numeric value which would be prefixed to the number series
generated for each excise invoice. The setup would be restricted to the Order/Invoice Types for which
it is created. For all other Excise Invoices which are created using Order/Invoice Types for which
setup has not been made, the system use the default number series. This would be a numeric series,
starting with 1, incremented by one. The sequence would be different for each Organization/location
and the nature of clearance. Within the organization, the sequence would be different for the
Domestic clearances and Export Clearances.
Before defining the user definable prefixes and excise invoice numbers, setups needs to be done in
define Bond register where the user needs to associate an Order type for all transactions Order
Management module and Transaction source for all transactions from Accounts Receivable module.
The Order type and transaction source will be associated with different type of excise removals (like
domestic with excise, Bond, Export with excise etc.). Only after associating an Order
type/Transaction source with an excise related transaction type, user should define the user definable
prefixes and excise invoice numbers in this region.
See Also: Defining Excise Invoice Generation, India Local Inventory Chapter
Step 6 Define Sub-Inventory Locations
As a part of Localization setup, the sub-inventories have to be associated to a combination of
Organization/Location. Excise related transactions and records would be updated only for those sub
inventories that are identified as bonded for manufacturing organizations and as traded for trading
organizations.
See Also: Defining Sub Inventory Locations, India Local Inventory Chapter
Step 7 Define Item Localization Information
The recording, recoverability and reporting of localization taxes would depend on the India
Localization related information setup for the item. These values have to be entered in the ‘India
Localization’ context of the Items DFF, attached to the Item Master.
The updation of the Dispatch transaction into the Excise Register would be considered only when the
Excise Flag is set to ‘YES’. Similarly, considering CENVAT Credit and updating the Excise Registers,
for a Receiving transaction would be considered only when the ‘Modvat’ flag is set to ‘Yes’. The
option chosen in the Item Class attribute would be the basis on which, the type of excise credit
register that has to be hit. Items classified in the other classes (such as OTIN, OTEX) would not be
considered for any excise record updation.
The Trading Flag would work together with the organization Trading Information setup. RG23D
Register would be hit only when the Trading item is transacted in a trading item.

See Also: Item Definition, India Local Inventory Chapter
Step 8 Define Tax Codes
The Tax Definition is a localization feature to define taxes that are applicable to the transactions
created in your organization. The Taxes can be classified in different Types. The Type would be
useful to recognize the relevance of the tax for the Excise Registers, Sales Tax form generation and
TDS Certificate generation. The Type chosen would also have influence over the behavior of other
fields in this form. You can specify the Tax Rate, surcharge, recoverability, rounding rule, expense
account code, Tax (Third party) vendor, multi-currency and effective period for the Tax. In a multi-
organization setup, Taxes would be specific to an organization. On choosing the Taxes Localized
option from the menu, you would get the list of Inventory Organizations, to choose from. The tax
defined can be used only for the organization for which it is defined.
Taxes once saved, cannot be updated.
See Also: Defining Tax Codes, India Local Inventory Chapter
Step 9 Define Tax Categories
If you can identify your purchase and sales transactions into clear categories, for which a similar set
of taxes with similar precedence and calculation are applicable, then you can group such taxes into a
Tax Category. In a Tax Category you can choose the Taxes, along with the precedence order and
calculation basis.
An Item Class can be identified for a Tax Category. These taxes would default for all the Items falling
in this class. This would be useful, where the Item class drives the tax applicability. These taxes
would default for the transactions created for the items in the item class. You can however, manually
add new tax lines and can change, delete, change precedence for the defaulted lines.
See Also: Defining Tax Categories, India Local Inventory Chapter
Step 10 Define Item Categories
Item Category allows you to assign Tax Categories to an inventory items in an Organization. You can
attach an item category to the Additional customer/supplier information. The Taxes defaulted for a
transaction line would be based on the Item Category attached to the Supplier/customer and the Tax
Category assigned to the Item in this category.
See Also: Defining Item Category List, India Local Inventory Chapter
Step 11. Define Manual Bill Of Material (BOM)
Use this feature to enter Bill of Material for a Finished Item. It would be required only when you have
not implemented Oracle BOM. You can define can define a Bill of material for same item effective
during different periods. This feature would be would be required for Duty Drawback Processing and
Outside Processing transactions.

The BOM setup can be made only for a finished goods Inventory item.
See Also: Defining Manual BOM, India Local Inventory Chapter
Step 12 Define Supplier Additional Information
Before you start using the Supplier/ supplier site for a localization transaction, it would be a necessary
for you to define India Localization related information for the Supplier/ Supplier Site. The supplier
registration information, with various tax authorities, Assessable Price List that would be the base for
the calculation of the Excise Base Amount and default Item Category can be defined here. The
definition would be the can be for the Supplier NULL Site and for Supplier Site. The primarily Tax
defaulting would be from the Supplier Site. In absence of any Tax Category at this level, the system
would pickup the value from the NULL Site. If you are working on a multi-org environment, then the
Addition supplier information defined for a Supplier Site from one organization cannot be accessed
from any other organization.
You will also have to enter the Income Tax and TDS related details applicable for the Supplier Site.
If your supplier is located within the State where your organization is located, then you should enter
his Registration Number with the Local Sales Tax Authority in the LST Reg. No. Field. Else, you
should be entering the CST Number in the CST Reg. No field. However, you would leave both the
fields blank when the Supplier Site is not registered as dealer with any of the Sales Tax Authorities.
This setup is mandatory for the generation of Sales Tax Reports provided by localization for
transactions within the state, outside the state and transactions from un-registered dealers.
See Also: Defining Supplier Additional Information, India Local Purchasing Chapter
Step 13 Define Organization Income Tax Registration Info
If you plan to use the TDS functionality for an Organization, it would become mandatory for you to
enter the Income Tax Registration details in the ‘India Org. Info’ context of the DFF attached to the
Organization screen.
See Also: Defining Organization TDS Information, India Local Payables Chapter
Step 14 Define Income Tax Authority
The liability arising from the Income Tax Deducted at source, while making supplier payments needs
to be accounted against an Income Tax Authority. You would create a Supplier and Site for this
Authority. Additionally, in the Type field on the Classification tab, choose ‘Tax Authority-IND’. On
doing this, when defining a ‘Tax Deduction at Source’ Type of Tax, the Supplier name would be listed
in the ‘Vendor’ field LOV on the Tax Definition screen
See Also: Defining Income Tax Authority, India Local Payables Chapter
Step 15 Define TDS Sections
India Localization comes with pre–seeded, default TDS Sections in the database. However, you
should review these default sections and decide whether to change them to suit your business needs.
If you want or need to change them, you should query on the ‘TDS_Sections’ from the Purchase

Lookup Codes and add a new record, with the relevant descriptions and the effective period. As the
same codes are also used for the Works Contract Tax applicable in you state, you might prefer to a
new records for defining the relevant sections.
See Also: Defining TDS Sections, India Local Payables Chapter
Step 16 Define TDS Tax Codes
You would use the Tax Definition screen to define the TDS Codes. Choose the ‘Tax Deduction at
Source’ option in the Type LOV. Select the Vendor Name, Vendor Site, Account and TDS Section
No. Enter the value in the Percentage and Rounding Factor fields. Enter the value in the Surcharge
field, wherever necessary.
See Also: Defining TDS Tax Codes, India Local Payables Chapter
Step 17 Define TDS Year
Before you start using the TDS functionality in an Organization, you will have to setup TDS Year
Information. This year would be the Income Tax Reporting Year and is independent of the Tax
Calendar defined in the Inventory Module. The TDS limits and TDS reports TDS Certificate would be
based on the period. This year would be the Financial Year defined under the Income Tax Act. There
can only be one TDS Year open at a time.
See Also: Defining TDS Year, India Local Payables Chapter
Step 18 Define Supplier Additional Information – TDS Details
For the supplier for whom the TDS has to be calculated, recorded and reported, you will have to
define the ‘TDS Details’ in the Supplier Additional Information. You would define the Registration
Details and the Applicable TDS Sections and TDS Tax Code that has to default for the transaction
created for the Supplier.
Where the Registration and the Tax calculation details are the same for all supplier sites, you can
define the ‘TDS Details’ for the Supplier NULL Site. The same details would be applicable for all
transactions created any of the Sites.
Where the TDS Details are different for the Sites, you can define the Registration Details at the
Supplier NULL Site. For all the sites setup made for this Supplier, the TAN No and Ward Number
defaults. You will have to enter the TAN No. and the TDS TAX Name and the relevant TDS Sections.
If you have not entered the default TDS Tax Code in the TDS TAX Name field, for the supplier site,
then the TDS TAX Name defined at the Supplier NULL Site would be considered for the Invoice.
The Approval of TDS related information would depend on the value in the ‘Create Pre-Approved
TDS Invoice & Credit Memo’ Field.
See Also: Defining Supplier Additional Information, Local Payables Chapter

Step 19 Define Customs Authority
The Duty advance paid to the Customs Authority has to be booked against a Customs Authority,
through a Bill of Entry. Before you create a ‘Bill of Entry’ India Localization Transaction, you should
have defined a Customs Authority. You would create a Supplier and Site for this Authority.
Additionally, in the Type field on the Classification tab, choose ‘Custom Authorities-IND’. On doing
this, when defining a ‘Bill of Entry’ transaction, the Supplier name would be listed in the ‘Customs
Authority’ field LOV on the Bill of Entry India Localization screen.
See Also: Defining Customs Authority, India Local Payables Chapter
Step 20 Define BOE Agent
It would be a pre-requisite to define a BOE Agent before you do a BOE Transaction. Navigate to the
Payables Setup and define the Clearing & agent information. The agent codes would appear in the
LOV of ‘Agent Code’ field of the Bill of Entry screen.
See Also: Defining BOE Agent, India Local Payables Chapter
Step 21 Define Excise Authority
The Excise advance/settlement paid to the Excise Authority has to be booked against an Excise
Authority, through the ‘Capture PLA Payments India Localization’ screen. Before you create a PLA
Payment Transaction, you should have defined an Excise Authority. You would create a Supplier
and Site for this Authority. Additionally, in the Type field on the Classification tab, choose ‘Excise
Authorities-IND’. On doing this, when defining a PLA Payment transaction, the Supplier name would
be listed in the LOV of the ‘Authority’ field on the ‘Capture PLA Payments India Localization’ screen.
See Also: Defining Excise Authority, India Local Payables Chapter
Step 22 Define Bond Registers
The calculation of excise duty and updation of excise registers are based on the setup made in the
define bond register. Before making this set up the user need to define the Order types and
transaction sources.
Excise transactions are classified as:
• Domestic with Excise
• Domestic without Excise
• Export with Excise
• Bond Register (Export under Bond)
Excise transactions need to be identified based on the Organization/Location combination and
against each excise transaction multiple Order types and Transaction sources can be assigned.
Order type need to be assigned to excise related transactions from Order Management Module and
Transaction source need to be assigned for all excise related transactions through the Receivable
module. If the Organization/location is of manufacturing type, excise related transactions for
manufacturing set up need to be associated. Like wise, if the organization/location is ‘trading’ excise
related transactions for trading need to be associated.

By associating the Order Types to the excise transactions for an Inventory Organization and Location,
the related Excise Record entries will be passed based on the nature of goods cleared.
See Also: Define Bond Registers, India Local Order management Chapter
Step 23 Define Assessable Price Lists
If the Taxable basis for the calculation of the excise duty is different from the Price at which the item
is sold, the, you will have to create additional Price lists with the Item Excise Assessable Price.
This price list has to be attached to the Customer/Customer Site and Supplier/Supplier Site. The
assessable price would be considered only for the calculation of the excise duty.
Step 24 Define Customer Additional Information
Before you start creating transactions for the customer, it would pre-requisite to record the localization
related information for the Customer Site. You would enter the customer Registration details with the
Excise, Sales Tax and Income Tax Authorities. You will also attach the Assessable Price list that
should be considered for the calculation of excise duty. You would also define the Item Category list
that would be basis for the defaultation of the localization taxes.
You will have to make this setup for each Customer Site.
You can enable the exempt flag for the Customer Sites exempted from excise duty.
See Also: Define Customer Additional Information, India Local Order management Chapter

India Local Inventory
This chapter explains how to use the Oracle Inventory functionality developed for India. It discusses
the following concepts:
• Overview of Miscellaneous Transactions
• Overview of Inventory and WIP Transactions that update Excise Registers
• Setting up India Localization Organizations and Taxes
• Managing Miscellaneous Transactions
• Reports

Miscellaneous Transactions Overview
You can use the Miscellaneous Transactions to register effect of inventory movements on Excise
Registers. You can record inventory issues and receipts to and from production using Miscellaneous
Issue/receipt (RG Update) and the respective excise inventory registers are updated with these
transactions.

Inventory & WIP Transactions Overview
India Localization supports certain transactions in order to keep track of movement of Excisable
Goods. Whenever there is a Transaction using Excisable goods is created from the following features
supported by Base Application, then India Localization updates Excise Quantity Registers. Following
is a list of such transactions and their impact of Excise Registers:
Transaction Type
Impact on Excise Registers for Item Types
RMIN CCIN FGIN CGIN OTIN
Miscellaneous Receipt RG Update RG 23A Part 1 RG 1 RG 1 RG 23C Part 1 NA
Miscellaneous Issue RG Update RG 23A Part 1
First RG
23A Part
1, then RG
1 RG 1 RG 23C Part 1 NA
Cycle Count Adjustment. RG 23A Part 1
RG 23A
Part 1 RG 1 NA NA
Physical Inventory Adjustment. RG 23A Part 1
RG 23A
Part 1 RG 1 RG 23C Part 1 NA
Move Order Issue RG 23A Part 1 RG1 RG 1 NA NA
WIP Component Return. RG 23A Part 1 RG 1 RG 1 NA NA
WIP Assembly Completion. RG 23A Part 1 RG 1 RG 1 NA NA
WIP Assembly Return. RG 23A Part 1 RG 1 RG 1 NA NA
WIP Negative Component Issue. RG 23A Part 1 RG 1 RG 1 NA NA
WIP Negative Component Return. RG 23A Part 1 RG 1 RG 1 NA NA
WIP Scrap Transaction. RG 23A Part 1 RG 1 RG 1 NA NA
Staging transfer of a sales order RG 23A Part 1 RG 1 RG 1 NA NA

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

Defining Organization Additional Information
This form provides with additional information regarding inventory organization. The information
available in additional organization information is the basic data for all India Localization activities and
accounting.
The User has to define an Organization and Location through Standard Application form. In the this
form he will define additional information for an Organization Location and each Organization
Location will be identified as an Excise/Tax Unit
While creating the additional organization information, it is mandatory to create two sets of records,
one at null location level and another with location.
If multiple organizations are defined within the same excise registered premises, user can opt to
identify one Organization & Location combination as "Master Organization" and all other
organizations needs to be treated as child and should have the reference of the master organization
based on ECC code. In such type of setup, the Master organization will be the organization at which
all excise registers should be generated only from the Master organization.
Note
The master child relationship among the organization and location are used only to generate
consolidated excise registers at Master organization level. You need to submit ‘India Master Org RG’
request set in order to get Excise Registers consolidated at Master Organization.
Prerequisites
Before you enter the Organization Additional Information, you must:
• Define Organizations
• Define Locations
• Assign Organizations to Locations
In Oracle India Localization, navigate to the Organization Tax Information India Localization window
as follows:
Setup Organization Additional Information

The screen layout and its feature are described below for ready reference.
Field Description Type Action Description
Organization Name/Location (Required) EDIT HELP
PICK
The user defined inventory
organization name needs to be
picked up here from LOV for which
the additional information is going to
be incorporated. The user from LOV
will select the location for a
particular organization.
Master Organization information Block
Master Organization flag This check box decides whether the
organization is a master
organization or a child organization.
If it is a child organization, this
needs to be attached to the Master
organization. Consolidated Excise
registers can be generated from the
Master organization.
Note: In the Master Org. Information block you have to specify whether the organization represents
an Excise licensed Organization or a child organization. If you select a child organization, you need
to specify which is the Excise licensed organization under which the child organization belongs. For a
master organization and location combination you need to enable the Master Organization flag. This
should be done for the Organization with Location specified. The ECC number defined for the mater
organization would default to all child organizations when master organization is selected.
Excise Block The following information are
related to Excise Registration for a

Inventory Organization Location
which is of Manufacturing Type. If
No Values are entered in this
block, then the Organization
Location is not manufacturing
enabled.
Excise Range (Optional) Details of the Jurisdictional
Central Excise range office of the
Organization can be entered in
this block. Values given in this field
will be taken while printing all
Excise related documents.
Excise Division (Optional) Details of the jurisdictional Central
Excise Division office of the
Organization can be entered in
this block. Values given in this field
will be taken while printing all
Excise Registration Number (Optional The number of the Central Excise
registration certificate can be
entered in this field. This
information will be taken while
printing all Excise related
documents.
Excise Zone (Optional) This is an additional field provided
where in the user can record some
information which he needs to print
in all excise related documents.
Excise Region (Optional) This is an additional field provided
Excise Circle (Optional) This is an additional field provided
Excise Collectorate (Optional) Details of the jurisdictional office of
the Central Excise Commissioner
of the Organization can be entered
in this block. Values given in this
field will be taken while printing all
EC Code (Optional) Use this field to enter Excise
Control Code of an Inventory
Organization Location. This would
be printed on all the documents
that are required under Excise
Rules.
If the user opts for the Master
organization concept, he needs to
ensure that the same ECC Number
given in the Master organization is
replicated in the respective child
organizations.

Excise Invoice at EC Code (Optional) Check this field in case you wish to
generate Excise
In case you have multiple internal
inventory organizations/
warehouses shall be existing within
the same Excise registered
premises and you would opt for
Excise Invoice number
generatation at the Master
Organization level then, check this
option.
Export Oriented Unit (Optional) Use this field to indicate whether
the Organization/Location is a
Export Oriented Unit. On checking
this flag the CENVAT liability
arising on shipment would be
matched component-wise with the
credit available for that Excise
Component. You would not be able
to complete shipment if the credit
available for Excise Component is
inadequate.
Sales Tax Block
CST Reg. No. (Optional) Use this field to enter Central Sales
Tax Registration Number of an
Inventory Organization Location.
This would be printed on all the
documents that are required under
Sales Tax Act.
LST Reg. No (Optional) Use this field to enter State Sales
Tax Registration Number of an
Inventory Organization Location.
This would be printed on all the
documents that are required under
Sales Tax Act.
Income Tax Block (Optional)
PAN No Use this field to enter Permanent
Account No of an Inventory
Organization Location. This would
be printed on all the documents
that are required under Income Tax
Act.
Note
This field is redundent
TAN No (Optional) Use this field to enter TDS Account
No of an Inventory Organization
Location. This would be printed on
all the documents that are required
under Income Tax Act.
Note
WARD No (Optional) Use this field to enter Ward No of
an Inventory Organization

Location. This would be printed on
all the documents that are required
under Income Tax Act.
Note
VAT Reg No. (Optional) Use this field to enter VAT
Registration No of an Inventory
Organization Location.
Note: Please note that if an Inventory Organization Location is a Manufacturing unit (Not a Trading
unit) and you enter details in the Tax Info Block, then you will not be allowed to enter any information
in the Excise -Trading Information Block through Trading Information Button.
Similarly if an Inventory Organization Location is a Trading unit (Not a Manufacturing unit) then No
Information should be entered in this Tax Info Block since this Excise Block is meant for entering
Excise Registration details for a Manufacturing Inventory Organization/Location.

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

Defining Accounting Information for Organization
You should ensure that you specify appropriate general ledger accounts in the Accounts Information
region. This information would be used to account for Localization transactions. It’s mandatory to
enter values in all the fields. Details of those fields and its significance are discussed below.
Prerequisites
Before you enter the Accounts Information - Organization Additional Information, you must:
• Define Organizations
• Define Locations
• Organization Additional Information
In Oracle India Localization, navigate to the Organization tax Information India Localization window as
follows:
Setup Organization Additional Organization Information Accounts Information
The screen layout and its feature are described below for ready reference.
Field Description Type Action Description
Accounts Information Block These accounting information are
necessary for an inventory
organization through which all the

charges related to an item on
taxes will charged to respective
accounting flex fields. The user
needs to define separate
accounting flex-fields for OSP
Excise a/c, Excise expenses,
Excise receivable, CENVAT on
Raw Material, CENVAT on
Capital Goods, Personal Ledger
Account, Excise -RG23D, Bill of
entry, Scrap cost, CENVAT
Reversal, Customs write off a/c.
OSP Excise (Required) PICK
HELP
EDIT
This account will be used to pay
the excise duty on goods sent for
Outside processing. This is
usually a Expenses a/c.
Excise Expenses (Required) PICK
HELP
EDIT
Enter a general ledger account
for Excise Expenses Account.
This default account is being
used to track the Excise duty due
from the excise department on
account of customer returns
treated as FG return or scrap.
Excise Payable/paid (Required) PICK
HELP
EDIT
Enter a default general ledger
account to be defaulted on all AR
transaction entry windows for
Accounting Excise Duty paid on
delivery of goods. This account
will debit for the total Excise
amount whenever shipment is
confirmed to a customer and AR
Invoice is raised.
CENVAT RM (Required) PICK
HELP
EDIT
account to be defaulted on all
CENVAT Raw Material account.
This is the default GL account
that will hit while performing a
receipt with CENVAT credit
(inputs) This is usually an asset
account.
CENVAT CG (Required) PICK
HELP
EDIT
account to be defaulted on all
CENVAT Capital Goods account.
This is the default GL account
that will hit while performing a
receipt with CENVAT credit
(Capital Goods) . This is usually
an asset account.
PLA Register ( Required
)
account to be defaulted for
Payment towards Excise duty
through TR-6 Challan. Whenever
the payment to excise is made

through the PLA Invoice/RG
Consolidation screen will update
this ledger account. This will also
consider the PLA debit entries
done through ship confirm
transactions and AR Localized
transactions.
Bill of Entry ( Required
)
PICK
HELP
EDIT
account to be defaulted on
creation of Bill of entry and on
applying Bill of Entry to Receipt.
This is usually an asset account.
Excise RG23D (Required) PICK
HELP
EDIT
Excise Duty Account for trading
item and this account will be
updated for transaction happened
in a Trading Organization
Location.
CENVAT Reversal (Required) PICK
HELP
EDIT
This CENVAT Reversal a/c will
be updated for Reversal entry
passed on account of Excise
Exemption & CT2 form
transactions in an Inventory
Organization Location.
CENVAT Receivable Account (Required) PICK
HELP
EDIT
The user needs to define a GL
Account of Asset type that needs
to hit while performing CENVAT
credit transactions for the capital
goods. As per the provisions of
Excise Rules, the manufacturer is
permitted only to take 50% of the
duty paid on capital goods at the
time of receipt and the balance
can be availed in the succeeding
financial year. The amount that
needs to be claimed later will be
accounted in this ledger account.
Customs write off (Required) PICK
HELP
EDIT
This Customs write off a/c will be
updated for a written off amount
from Bill of Entry a/c when ever
amount is written off from BOE.
RTV Expense (Required) PICK
HELP
EDIT
This field would be debited with
the differential duty that needs to
be paid in a RTV transaction. You
should have also checked the
RTV Account Flag check box in
this window.
This account would also be
debited with the Third Party,
Customs and CVD tax amounts
included in Return to Vendor
transaction.
Allow tax change on receipt (Optional) CHECK
BOX
By enabling this flag, the taxes in
the receipt defaulted from the

original purchase order could be
changed.
Allow negative balance in PLA (Optional) CHECK
BOX
By enabling this check box, the
user will be able to over draw
from the PLA Balance available
with him. If this is not enabled,
system will hold shipments for
want of funds in PLA.
RTV Account Flag (Required) CHECK
BOX
You should check this field only
when you have decided that you
would debit the supplier only with
the Excise Duty paid by him
during the supply of goods. Once
this check box is enabled, you will
be able to associate an account
where the differential duty needs
to be accounted.
This account is also debited with
Third Party Taxes included in an
RTV.

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