Professional Documents
Culture Documents
Release 11i
January 2007
Contents
Handling Inter Organization Transfer .............................................................................................. 5
About this Manual ............................................................................................................................. 6
Inter Organization Trasnfer - Overview .......................................................................................... 8
Basic Business Needs...................................................................................................................... 9
Major Features................................................................................................................................. 10
Inter Organization Transfer - Set Up ............................................................................................. 12
SetUp Checklist............................................................................................................................... 12
Setup Steps ..................................................................................................................................... 13
Step 1 Define Organization Additional Information ___________________________________ 13
Step 2 Define Organization Trading Information_____________________________________ 13
Step 3 Define Excise Invoice Generation __________________________________________ 13
Step 4 Define Sub Inventory Location_____________________________________________ 14
Step 5 Define Localization Item Information ________________________________________ 14
Step 6 Define Inter Organization Relationship ______________________________________ 14
Step 7 Define Tax Codes ______________________________________________________ 14
Step 8 Define Tax Categories ___________________________________________________ 14
Step 9 Define Item Categories __________________________________________________ 15
Step 10 Define Assessable Price Lists ____________________________________________ 15
Step 11 Define VAT Regime ____________________________________________________ 15
Step 12 Define VAT Claim Terms ________________________________________________ 15
Step 13 Define VAT Generation Sequence ________________________________________ 15
Step 14 Define Customer Additional Information ____________________________________ 15
Processing Inter Organzation Transfer Transactions................................................................. 16
Inter Organization Transfer of Captial Goods _______________________________________ 22
Inter Organization Transfer for Trading Organization _________________________________ 25
Accounting Entries ___________________________________________________________ 29
View Inter Organization Transactions _____________________________________________ 32
Define / Change Other Taxes at the time of Shipment in the Shipping Organization
Generate Excise Invoice Number at the time of Shipment in the Shipping Organization
Generate VAT Invoice Number at the time of Shipment in the Shipping Organization
Update Excise Records at the time of Shipment in the Shipping Organization (RG 23 D
in the case of Trading Organization and relevant registers in case of Manufacturing
Organization).
Generate VAT Invoice Number at the time of Shipment in the Shipping Organization
Generate Accounting Entries related to Central Excise at the time of Shipment in the
Shipping Organization
Generate VAT Accounting Entries at the time of Shipment in the Shipping Organization
Generate Accounting Entries at the time of Shipment for Other Taxes in the Shipping
Organization
Generate Accounting Entries for VAT Credit at the time of Receiving in the Receiving
Organization
Account Other Type of Taxes at the time of Receiving in the Receiving Organization
Update Item Cost at the time of Receiving in the Receiving Organization for nonrecoverable taxes.
Major Features
Defaulting Taxes to IL Inter Organization Transfer
For Items that attract Localization Taxes, Tax Category will be defaulted on the IL Inter Organization
form when an Inter Org Transfer is performed. These taxes will be defaulted based on the Tax
Defaulting Rules. Taxed would be Defaulted automatically based on Item Category assigned to the
Customer - Customer Site; Customer Null Site or based on the Item Class assigned to the Tax
Category for the internal customer.
Manual Changes to Defaulted Taxes to IL Inter Organization Transfer
Taxes defaulted during Inter Organization transfer can be modified manually in case of a need.
Tax Base Amount
User can define precedence logic for calculation of Tax Base Amount on which the Tax Rate would
be applied. The Tax Base Amount can either be the line amount or line amount including other taxes
calculated for the transaction.
Defaulting Assessable Value to IL Inter Organization Transfer
The user has an option to use Assessable value that is different from the Cost of the Item. This
Assessable price is picked for the respective taxes defaulted based on Tax Defaulting Rules.
Assessable Prices are defaulted automatically when an Assessable Price List is assigned to the
Customer, Customer Site or Null Site for the internal customer.
Generation of Excise Invoice Number
When the Item shipped has Excise related Taxes, an Excise Invoice Number gets generated once the
transaction is saved. All excise related registers will get updated on completion of the transaction.
The sequence used/ followed for the Excise Invoice Number generation is that of the Domestic
Sequence set up in the Organization Additional Information.
Generation of VAT Invoice Number
When the item being shipped has VAT type of Taxes and is marked as VAT able, a VAT Invoice
Number is generated once the transaction is saved. The tax repository gets updated on completion of
the transaction.
Tax Accounting
The India Localization Tax engine generates Accounting Entries only for the items related to
Localization Taxes. Oracle base Inventory will generate the accounting entries for the basic value of
Inventory transferred.
Costing
Item cost of the material transferred is calculated and updated by the base inventory. The nonrecoverable taxes are moved separately to the item cost by the localization engine. India Localization
Inventory Transfer supports transfer and receipts of inventory from an average cost organization to
standard cost organizations and vice versa.
Updating RG 23 D Registers
In case of Trading Organization, RG 23D gets updated both in the Sending and Receiving
Organization as against RG 23 A / C or RG1 for raw materials, capital goods or finished goods item in
a manufacturing organization.
Reversal of CENVAT Claim
10
In case of Capital Goods being shipped during the same year of purchase, the accrued CENVAT
Claim will be reversed and Excise Invoice will be generated for the same. The user needs to match
the items transferred with its original receipt quantity in order to claim the accrued CENVAT credit.
Note: This is possible only in case of In Transit Inventory Transfer.
Reversal of VAT Claim
In case of Items attracting VAT Type of Taxes and the Claim of VAT is being spread across a period
of time and transfer of item happens during the period, the unclaimed VAT will be reversed and VAT
Invoice Number will be generated in the Shipping Organization.
Note: This is possible only in case of In Transit Inventory Transfer. The user needs to match the
items transferred with its original receipt in order to claim the accrued VAT credit.
11
SetUp Checklist
The following table lists setup steps. On logging on to Oracle Applications, complete these steps to
implement Inter Organization Transfer:
Oracle India Invenotry
Step No Required
Step Title
Step 1
Required
Define Organization Additional Information
Step 2
Optional
Define Trading Registration Details
Step 3
Optional
Define Excise Invoice Generation
Step 4
Required
Define Sub Inventory Location
Step 5
Required
Define Localization Item Information
Step 6
Required
Define Inter Organization Relationship (Shipping Networks)
Step 7
Required
Define Tax Codes
Step 8
Required
Define Tax Categories
Step 9
Required
Define Item Categories
Step 10
Optional
Define Assessable Price Lists
Step 11
Required
Define VAT Regime
Step 12
Required
Define VAT Claim Terms
Step 13
Required
Define VAT Invoice Generation Sequence
Oracle India Receivables
Step 14
Required
Customer Additional Information (For Internal Customer)
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Setup Steps
This section provides an overview and details of each step involved in completion of IL Inter
Organization Transfer.
13
14
15
16
After keying all required information on this form Click on the Transaction Lines button. It takes us to
the detail transaction form of the base. Here two additional buttons, Match and Taxes are added to
enable users to do the Inter Organization Transfer specific to Indian requirements.
For details of using the Inter Organization Form refer to Transferring Between the Organizations
Section of the Oracle Inventory User Guide.
Based on the defaulting logic defined and setups done for the item transacted, the Tax Category will
be defaulted.
The tax lines can be viewed by using the Taxes button available in the form. The user can modify the
Taxes like Addition of new Tax Lines, Deletion of defaulted Tax lines and Alter Precedence of existing
Tax lines.
Important Note: While defining the Shipping Networks for the Organizations ensure that Inter
Organization Transfer Charges Type is set to None. If the same is set to any other type, IL tax
engine neither considers that in the valuation of the Inventory nor in the tax lines.
17
After making the desired changes, click on the Apply Button and then Save Icon on the Tool Bar to
record changes. Close the tax from after saving to get back to the detail of transaction form.
Save the transfer transaction using the Save button available on the tool bar to update the transfer.
This confirms the transaction and restricts further modifications. Saving the inventory transfer record
also generates the Excise and VAT Invoice Numbers when the item has the Excise and VAT type of
Taxes. The Invoice numbers generated on saving the transaction are shown in a separate form.
Field Name
Line Number
Exc. Inv.No.
Description
Line Number of the item being transacted.
Excise Invoice Number generated for the Transaction if
the item is excisable and transaction has Excise Type of
Taxes.
Vat.Inv.No
4
4
Item
Quantity
From Org
To Org
From Subinv.
To Subinv
18
The register updates for the various type of Inter Organization Transfer from Excise perspective are
given in the table.
Sl.No
Shipping
Organization
Item
Attribute
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
RMIN
RMIN
RMIN
RMIN
FGIN
FGIN
FGIN
FGIN
CGIN
CGIN
CGIN
CGIN
CCIN
CCIN
CCIN
CCIN
Registers
to
be
Updated In Shipping
Organization
Receiving
Organization
RG23 A Part 1
RG23 A Part 1
RG23 A Part 1
RG23 A Part 1
RG 1
RG 1
RG 1
RG 1
RG23 C Part 1
RG23 C Part 1
RG23 C Part 1
RG23 C Part 1
RG23 A Part 1
RG23 A Part 1
RG23 A Part 1
RG23 A Part 1
RMIN
FGIN
CGIN
CCIN
RMIN
FGIN
CGIN
CCIN
RMIN
FGIN
CGIN
CCIN
RMIN
FGIN
CGIN
CCIN
Item
Attribute
Registers
to
Updated
Receiving
Organization
be
In
RG23 A Part 1
RG 1
RG23 C Part 1
RG23 A Part 1
RG23 A Part 1
RG 1
RG23 C Part 1
RG23 A Part 1
RG23 A Part 1
RG 1
RG23 C Part 1
RG23 A Part 1
RG23 A Part 1
RG 1
RG23 C Part 1
RG23 A Part 1
To view Register entries navigate to the following path on saving the transfer record:
19
The screen layout of the View Registers in the Sending Organization is given below:
In case of Direct Organization transfer the user need not record the receipt of material as the
quantities in the Receiving Organization gets updated automatically on shipment. Excise and VAT
claims for the same is performed by the system online without any user intervention. The costing for
the item also gets updated based on the nature of the tax lines in the Tax Category. The user can
view register entries of the receiving organization by querying the transfer document from the
Receiving Organization Inventory responsibility.
20
Assessable price for the Transaction is picked up from the Customer Additional Information form for
Excise and VAT Taxes. If the same is not defined, it takes the value from the Item Cost for the item
being shipped.
In case of In Transit Inventory Organization Transfer, the user needs to perform the Receiving of the
Goods as a normal receipt and follow the same process of claming CENVAT and VAT tax credit. In
the Receipts the transaction can be captured through the Shipment Number or through various filters
available in the query Form.
For Detail of making receipt: Refer to Receipts Section of India Local Purchasing User Reference
Manual.
The default Document Sequence followed for Excise Invoice Number Generation is that of the
Domestic Series. The same sequence is followed for the Direct and In Transit Inter Organization
Transfers. VAT Invoice Number generation is based on the Default Document Type set up done
against the Regime Registration Number of the Organization. The same sequence is followed for the
Direct and In Transit Inter Organization Transfers.
The India Localization tax engine generates Accounting Entries only for the items related to
Localization Taxes. Oracle Base Inventory will generate the accounting entries for the basic value of
Inventory transferred and for variances if any in case of Standard Costing in Receiving Organization.
21
In order to match against the relevant Receipt, Click on the Match Button of the Detail form. The user
has to ensure that the shipment is being matched to the correct receipt. In order to confirm the same
the following message is shown before the CENVAT Receipt Details form is opened.
22
The Match form contains all capital receipts that contain Excise or VAT type of taxes attached to it.
The user has the flexibility to apply the shipment quantity against multiple receipts. The system
ensures that the sum of all quantities applied in the match form equals the shipment quantity. The
claimed percentage is also shown in the CENVAT Receipt Details form to facilitate the user to identify
the receipt.
Field wise description for the CENVAT Receipt Details form is given below:
Field Description
Receipt Number
Type
Action
Receipt Quantity
Available Quantity
Excise Claimed Percentage
Quantity to Apply
Optional
Description
Displays various receipts numbers of the capital goods
item being shipped by the Sending Organization.
Displays the number of quantities received against the
particular receipt.
Quantity available for application. (Receipt Quantity
Sum of all Quantity Applied)
Displays the percentage of excise duty claimed against
the receipt for CENVAT purpose. (Amount Claimed /
Total Excise to be claimed)
Displays the percentage of VAT claimed against the
receipt. (VAT Amount Claimed / Total VAT to be
claimed)
Quantities to be shipped for the Inter Organization
Transfer needs to be entered in this column against
which receipt the transaction is to be carried out.
23
The following message is thrown on confirming the match claim. This is to ensure user that the
matched quantities are final and needs no further modification.
Apart from claiming the accrued CENAVT and VAT claims by matching the shipment to a Receipt,
rest of the process is same in the Sending Organization and in the Receiving Organization.
Closing the CENVAT Receipt Details form reduces the pending quantity available against the receipt.
When Match Button is clicked on after matching the shipment against a specific Receipt/s. The same
cannot be viewed and the following error message is displayed.
Note: Matching the receipt quantity also restricts modification of taxes in the tax screen. Thus all
activities with respect to taxes such as addition / modification should be completed before matching
the receipt quantities.
When line values are modified after completion of match activity, the system reverts the quantities
that were already matched against the Receipts. The user has to re-match the shipped quantities in
order to claim the balance accrued credit. The following note is shown on modification of the matched
line.
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25
On entering the required values in the above form, the user has to Click on the Match Button to match
against specific Receipt/s. If the user does not Click on the Match button but tries to Save the
transaction directly, the systems shows the following error message.
When the user applies the Match Button, the system gives the following alert to the user to ensure
that the entered information is correct.
The Match receipts functionality allows the user to satisfy all requirements related to a Trading
Organization or location registered under the Central Excise Rules to pass on Excise Credit to the
Customers. The Excise Duty tracked while receiving the goods in a Trading Organization can be
allowed as CENVAT credit for the Customers. Thus, before confirming the shipment, the user needs
to allocate the excise duty involved during receipt of the excisable goods.
While sending goods from the Trading Organization, you are required to track the exact amount of
Duty paid by the Original Manufacturer for passing down the credit under CENVAT procedures.
On applying the Matching Button it takes the user to the following screen where the required receipt
can be matched against the shipment.
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Field Description
Customer
Name
Customer Number
Quantity Invoiced
Matched Quantity
Type
(Displayed)
Item
(Displayed)
UOM
Transaction Type
(Displayed)
(Displayed)
Supplier Invoice No
(Displayed)
Quantity in Receipt
UOM
Received
(Displayed)
Available
(Displayed)
Action
(Displayed)
(Displayed)
(Displayed)
(Displayed)
Apply
(Displayed)
Available
(Displayed)
Apply
Description
Name of the Internal Customer will be displayed
here.
Customer Number will be displayed here.
Shipped quantity will be shown here.
Before matching, this field will be blank and after
matching this field shows the matched quantity.
Item code of the material shipped will be
displayed here.
UOM of an item will be displayed here.
Transaction type like Receipts and Return will be
displayed here.
Supplier Invoice Number for a particular receipt
will be displayed here.
UOM of the item in the Receipt line will be
displayed here.
Quantity received in a particular Receipt will be
displayed here.
Available Quantity in a particular Receipt will be
displayed here.
This represents the proposed match quantity.
This will be filled by the system for a Release
Quantity if the User selected Automatic
Matching. The User can also enter number of
quantity manually for matching.
UOM of the item in the Issue line will be
displayed here.
Available Quantity in a particular Issue will be
displayed here, this is equivalent to Available
receipt quantity.
This represents the match quantity.
27
Field Description
Receipt Number
Receipt Date
Duty Per Unit
Type
(Displayed)
(Displayed)
(Displayed)
(Displayed)
Action
Description
Receipt Number will be displayed here.
Receipt Date will be displayed here.
Excise Duty per unit as per receipt line will be
displayed here.
Cess per unit as per receipt line will be displayed
here.
Closing the RG23D Register Entries India Localization (match claim) form reduces the pending
quantity available against the receipt.
When Match Button is clicked on after matching the shipment against a specific Receipt/s. The same
cannot be viewed and the following error message is displayed.
Note: Matching the receipt quantity also restricts modification of taxes in the tax screen. Thus all
activities with respect to taxes such as addition / modification should be completed before matching
the receipt quantities.
When line values are modified after completion of match activity, the system reverts the quantities
that were already matched against the Receipts. The user has to re-match the shipped quantities in
order to claim the balance accrued credit. The following note is shown on modification of the matched
line.
For details refer to the Trading Section of the Oracle India Local Order Management, India Local
Receivables and India Trading functionality User Reference Manual.
Once Matching is done and the transaction is saved, the same cannot be modified.
Note: The user must define the Tax Category with ADHOC Excise type of Taxes for the Excise Duty
to be defaulted from the Receipt Number Selected.
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Accounting Entries
The accounting entries passed for the shipment can be viewed when Excise / VAT Details form is
Open. Navigation Path: Tools> View Accounting in the Tool bar
Tax Type
Sending Organization
Receiving Organization
On Transfer
of Materials
Excise
VAT
Reversal *
N.A
29
Transaction
Details
Tax Type
Sending Organization
Receiving Organization
Other
Taxes
N.A
N.A
When the
Receiving
unit is NonBonded
When the
Receiving
unit is
Trading with
Excise in RG
23D
Tax Type
Sending Organization
Receiving Organization
Issue FOB
point set to
Receipt
Excise
N.A
VAT
N.A
Receipt FOB
point set to
Receipt
VAT
Reversal *
N.A
Other
Taxes
N.A
Excise
VAT
30
Transaction
Details
Tax Type
Sending Organization
Receiving Organization
Credit: VAT Interim Recovery A/C
Issue FOB
point set to
Shipment
Excise
VAT
Receipt FOB
point set to
Shipment
VAT
Reversal *
N.A
Other
Taxes
Excise
N.A
VAT
N.A
Other
Taxes
N.A
* This entry is generated only in the Sending Organization for the reversal of VAT on account of this
transaction (if any Reversal is applicable)
31
The filed wise description for the Form View Interorg Excise / VAT Details form is given below.
Field Description
Find Excise / VAT Details
From Organization
Type
Action
Description
Optional
Pick
To Organization
Optional
From Date
Optional
To Date
Optional
Optional
Optional
32
SNO
1
2
Field Name
Line Number
Exc. Inv.No.
Vat.Inv.No
4
4
Item
Quantity
From Org
To Org
From Subinv.
To Subinv
Description
Line Number of the item
Excise Invoice Number generated for the Transaction if
the item is excisable and transaction has Excise Type of
Taxes.
VAT Invoice Number generated for the Transaction if the
transaction has VAT Type of Taxes.
Gives the description of the Item being shipped.
Displays the Quantity being shipped for the Item against
the transaction.
Displays the name of the Organization from where the
goods have been shipped for this transaction.
Displays the name of the To Organization, where the
goods have been shipped for this transaction.
Displays the Sub Inventory of the Shipping Organization
from where the goods have been shipped for this
transaction.
Displays the Sub Inventory of the Receiving Organization
to which the goods have been shipped for this transaction
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