India Localization Inter Org Transfer

India Localization Inter Organization Transfer
Users Reference Manual
Release 11i
January 2007
Oracle India Localization Users Reference Manual
Oracle India Localization Inter Organization Transfer User Reference Manual

Release 11i
Oracle Corporation
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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
Handling Inter Organization Transfer

This documents details the functionality implemented in 11i Oracle India Localization to support Inter
Organization Transfer feature provided by Oracle Inventory.
About this Manual

The Oracle Applications 11i - India Localization Inter Organization Transfer User Reference Manual
includes all information required to use India Localization Inter Organization Transfer solution
effectively.
This manual is to be referred in conjunction with Oracle Applications 11i Reference Manuals of the
respective base product modules and Oracle India Localization User Reference Manual.
India Inter Organization Transfer Solution addresses the needs of Indian Industry relating to Inter
Organization Transfer. All general requirements relating to transfer of inventory have been
incorporated in the scope of this localization, however industry or state specific requirements are not
addressed.
Audience for this Manual

This manual is a complete source of information about India Localization Inter Organization Transfer
enhancement and designed to provide useful guidance and assistance to:
Consultants implementing India Localization version of Oracle Applications
Key user team of Oracle Applications
Accountants
Accounting Mangers
Auditors
Chief Financial Officers
Controllers
Data Entry Clerks
Financial Analysts
Line Managers
MIS Professionals
The Oracle Applications India Localization for Inter Organization Transfer manual assumes you have
a basic understanding of Localization requirements in India and a thorough understanding of India
Localization features. It also assumes you have a basic familiarity with various types of Inventory
Transactions in Oracle Applications.
Inter Organization Trasnfer - Overview

As a part of day-to-day business needs, organizations may require transfer of material from one
Inventory Organization to another Inventory Organization. Whenever, such movement of material
from one Organization to another happen, necessary tax implications relating to Central Excise and
Value Added Tax regimes need to be addressed to facilitate movement of goods.
Oracle Inventory provides 2 ways to transfer goods between inventory organizations:
1. Internal Sales Order and
2. Inter Organization Transfer.
Transfer of Inventory through the Internal Sales Order route is already supported in India Localization
Product. This document gives an insight into the Inter Organization Transfer and the process of using
it.
Oracle India Localization Users Reference Guide
Basic Business Needs

Whenever there is movement of goods from one Inventory Organization to another Inventory
Organization, following are the business needs, which are being addressed.
Default Tax Category at the transaction level.
Define the Receiving Organization as the Internal Customer
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
Default taxes at the time of receiving
Define Other Taxes at the time of Receiving in the Receiving Organization
Update Excise Records at the time of Receiving in the Receiving Organization

(RG 23 D in the case of Trading Organization and relevant registers in case of
Manufacturing Organization).
Claim Credit for CENVAT able Taxes in the Receiving Organization
Generate Accounting Entries for CENVAT Credit in the Receiving 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 VAT Records at the time of Receiving in the Receiving Organization
Claim VAT Credit 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
Inter Organization Transfer - Set Up

This section provides an overview along with details of each setup that needs to be completed in
order to use India Localization Inter Organization Transfer.
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)
12
Setup Steps
This section provides an overview and details of each step involved in completion of IL Inter
Organization Transfer.
Step 1 Define Organization Additional Information

Identify and Define Inventory Organizations and Locations that would be reporting to the Tax
Authorities. The information defined at this level would be the basis for Recording, Reporting and
Accounting of the local taxes. Apart from this the user would also define the Organization Registration
details with Excise, Customs, Sales Tax and TDS authorities. This information available in Additional
Organization Information is the basic data for all India Localization activities. 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 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 / alphanumeric 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 one, 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.
See Also: Defining Excise Invoice Generation, India Local Inventory Chapter
13
Step 4 Define Sub Inventory Location

As a part of Localization setup, 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 Location, India Local Inventory Chapter
Step 5 Define Localization Item Information

The recording, recoverability and reporting of Localization Taxes would depend on India Localization
related information setup for the Item. These values have to be entered in India Localization context
of the Items DFF, attached to the Item Master. Excise Registers would be updated only when the
Excise Flag is set to YES. Similarly, considering CENVAT Credit and updating the Excise Registers
for a Receiving transaction would happen 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 update Excise
Records.
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 Organization.
See Also: Defining Item Information, India Local Inventory Chapter
Step 6 Define Inter Organization Relationship

Inter Organization relation needs to be assigned before carrying out the transactions. Inter
Organization relations can be defined through the Shipping Networks Form in the India Local
Inventory Responsibility.
Refer: Oracle Inventory for details on Setting Inter Organization Relation
Step 7 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 multiorganization 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 Names / Codes, India Local Inventory Chapter
Step 8 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
14
Step 9 Define Item Categories

Item Category allows you to assign Tax Categories to an inventory item in an Organization. You can
attach an Item Category to the Additional Internal Customer information. The Taxes defaulted for a
transaction line would be based on the Item Category attached to the Internal Customer and the Tax
Category assigned to the Item in this category.
See Also: Defining Item Category List, India Local Inventory Chapter
Step 10 Define Assessable Price Lists

When the Taxable basis for the calculation of the Excise Duty is different from the Price at which the
Item is transferred, then the user will has to create additional Price Lists with the Item Excise
Assessable Price. This price list has to be attached to the Internal Customer / Customer Site. The
Assessable Price would be considered only for calculation of the Excise Duty.
Assessable Price Lists needs to be defined separately for Excise and VAT if the taxable basis is
different.
See Also: Defining Assessable Price List, India Local Inventory Chapter
Step 11 Define VAT Regime

Regime would be used to define rules that would be applicable to all Taxes assigned to it. You need
to complete this setup step before you move ahead with other setups. Setups made for a Regime
would be applicable to all transactions created from the Organizations assigned to it. Information
defined here would be generic unless you assign different properties at an Organization Level.
In the Regime the user has to provide VAT Registration Number and Accounts associated with the
Regime such as Liability and Interim Liability accounts for the Taxes and assign Organizations to it.
See Also: Define VAT Regime, Value Added Tax Chapter
Step 12 Define VAT Claim Terms

VAT taxes applicable to a purchase of Capital Goods can be recovered over a period of time as
specified under the VAT Act. The VAT Claim terms enables users to define VAT Recovery Term.
These terms can be assigned to the VAT Item Classes.
See Also: Define Claim Terms, Value Added Tax Chapter
Step 13 Define VAT Generation Sequence

VAT Invoice sequence can be defined for an Order/Invoice Type. The user can also specify prefixes
for each series.
A default series would be defined automatically for the regime. This would be applicable to the
Transaction Types to which no series has been defined.
See Also: Define VAT Invoice Sequence, Value Added Tax Chapter
Step 14 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 & VAT. You would also define
the Item Category list to default localization taxes.
You will have to make this setup for each Customer Site.
See Also: Defining Customer Additional Information, India Local Order Management Chapter
15
Processing Inter Organzation Transfer Transactions

India Localization Inter Organization Transfer helps in transfer of material between Inventory Units.
Transfer of materials can be either from manufacturing to trading unit or vice versa.
Existing form of Inventory Transfer of Oracle Base Inventory has been added with two new buttons at
the bottom of the screen to meet the Indian Tax Requirements.
Similar to the ISO (Internal Sales Order) Cycle, the user needs to define the Receiving Organization
as the Internal Customer in the Sending Organization.
Item Category and Tax Category needs to be defined for the Item to be shipped from the Sending
Organization to the Receiving Organization. This needs to be defined and attached in the Internal
Customers set up.
Tax defaulting hierarchy in the Inter Organization Transfer is similar to India Localization process of
Tax Defaulting for Sale Order.
Navigation: India Local Inventory (Responsibility) > India Local Inventory > Transactions > IL
Inter Organization Transfer
This opens the Base Inventory form of Inter Organization Transfer. Before making a shipment the
user has to ensure that all set up relating to Oracle Base Inventory are completed.
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 wise description of the Form Excise/VAT Details

SNO
1
2
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
VAT Invoice Number generated for the Transaction if the

item is defined in the VAT Item Classification and
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
From Subinv.
Displays the Sub Inventory of the Shipping Organization

from where the goods have been shipped for this
transaction.
To Subinv
Displays the Sub Inventory of the Receiving Organization

to which the goods have been shipped for this transaction
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
Inter Organization Transfer of Captial Goods

When Capital Goods are being transferred in the same year of purchase, the Accrued Excise Credit
on Capital Goods needs to be claimed in the Sending Organization. This claim will be done by the
system automatically and the accounting entry for the same will also be generated on matching the
line quantity with the original receipt.
The user has an option to match the shipment quantity against a specific Receipt to claim the balance
accrued excise credit. The system prompts the user to match the shipment with its receipt when the
user saves the record without matching. This option of selecting the receipt from which the claim is to
be made is optional and can be ignored when the Capital Goods are of more than one year old or
hundred percent excise credit has already been availed.
Once the claim for the Capital Goods is carried out, the Goods can be sent as normal duty paid
goods by charging the relevant rate of Excise Duty. Transfer of Capital Goods is available only for In
Transit Inter Organization Transfer.
Similar to CENVAT Claim, user has the option of claiming the VAT accrued credit.
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
VAT 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.
24
Inter Organization Transfer for Trading Organization

When material is transferred from a Trading Organization, the user has to match the shipment against
a receipt in order to update the Localization Excise Registers. Unlike Manufacturing Organization
where RG 1 is updated, RG23D register gets updated in case of a Trading Organization.
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.
26
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
Quantity in Issue - UOM
(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)
Cess Per Unit
(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.
28
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
Accounting Entries - Direct Organization Transfer

Transaction
Details
Tax Type
Sending Organization
Receiving Organization
On Transfer
of Materials
Excise
Debit: Excise Paid / Payable (Excise)

Debit: Excise Cess Payable (ED Cess)
Credit: RG23 Register / PLA A/C
Debit: Inventory Receiving A/C

Credit: Inter Org Payable
Debit: Inter Org Receivable A/C

Credit: Excise Paid / Payable (Excise)
Credit: Excise Cess Payable (ED Cess)
VAT
VAT
Reversal *
Debit: RG23 Register A/C (Excise)

Debit: RG23 Register A/C (ED Cess)
Credit: Inventory Receiving A/C
Debit Inter Org Receivables A/C

Credit VAT Interim Liability A/C
Debit: VAT Interim Recovery A/C

Debit: VAT Interim Liability A/C

Credit: VAT Liability Account
Debit: VAT Recovery A/C

Credit: VAT Interim Recovery A/C
Debit: Expense A/C

Credit: VAT Recovery A/C
N.A
29
Transaction
Details
Tax Type
Other
Taxes
Debit Inter Org Receivables A/C

Credit: Other Taxes Payable

Credit: Inter Org Payable
N.A
Debit: Inventory A/c (All Taxes)

Credit: Inventory Receiving
N.A
Debit: Excise RG 23D A/C

Credit: Inventory Receiving
When the
Receiving
unit is NonBonded
When the
Receiving
unit is
Trading with
Excise in RG
23D
Accounting Entries In Transit Transfer

Transaction
Details
Tax Type
Issue FOB
point set to
Receipt
Excise
Debit: Excise Paid / Payable (Excise)

Debit: Excise Cess Payable (ED Cess)
Credit: RG23 Register / PLA A/C
N.A
Debit: In Transit Inventory A/C

VAT

N.A

Credit: VAT Interim Liability A/C (VAT)
Receipt FOB
point set to
Receipt
VAT
Reversal *
Debit: Expense A/C

N.A
Other
Taxes

Credit: Other Taxes Payable (Others)
N.A
Excise
Debit: Inter Org Receivable

Credit: In Transit Inventory A/C

Credit: Inter Org Payable A/C
VAT
Debit: Inter Org Receivable


30
Transaction
Details
Tax Type
Issue FOB
point set to
Shipment
Excise


Credit: Inter- Org Payable A/C
VAT



Credit: VAT Interim Liability A/C
Receipt FOB
point set to
Shipment
VAT
Reversal *
Debit: Expense A/C

N.A
Other
Taxes

Credit: Other Taxes Payable (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
View Inter Organization Transactions

View Interorg Excise / VAT Details facilitates to view the Inter Organization Transactions. This form is
only a view form and the user cannot make any modifications on the form.
Navigations: India Local Inventory (Responsibility) India Local Inventory Transactions View
Interorg Excise / VAT Details.
The filed wise description and the screen layout of the Form View Interorg Excise / VAT Details form
is given below.
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
Excise Invoice No.
Optional
VAT Invoice No.
Optional
Select the Name of the Organization form where

the Inter Organization Transfer has taken place.
Select the name of the Organization to where the
goods are shipped at the time of transacting the
Inter Organization Transfer.
Starting from this date the Inter Organization
Transactions will be part of the Query criteria.
End date of the Query Criteria for the Inter
Organization records to be displayed.
Excise Invoice Number for the Inter Organization
Transfer being generated at the time of
transaction creation. Based on this the query
criteria the record / s will be displayed. If a
particular Excise Invoice Number is given then
the same is displayed.
VAT Invoice Number for the Inter Organization
Transfer being generated at the time of
transaction creation. Based on this the query
criteria the record / s will be displayed. If a
particular VAT Invoice Number is given then the
same is displayed.
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
Displays the name of the To Organization, where the
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
33

India Localization Inter Org Transfer

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India Localization Inter Organization Transfer

Users Reference Manual

Oracle India Localization Users Reference Manual

Oracle India Localization Inter Organization Transfer User Reference Manual

Primary Author: Mallikarjuna Gupta, Harishankar, Shekhar Jadhav, Narasimha Pai,

Oracle India Localization

,Oracle9i, PC Express, Personal Express, PJM Advantage, PL/SQL, Pro*Ada, Pro*C

Oracle India Localization Users Reference Manual

Oracle India Localization

Oracle India Localization Users Reference Manual

Oracle India Localization

Handling Inter Organization Transfer

Oracle India Localization Users Reference Manual

Oracle India Localization

About this Manual

Oracle India Localization Users Reference Manual

Audience for this Manual

Oracle India Localization Users Reference Manual

Oracle India Localization

Inter Organization Trasnfer - Overview

Oracle India Localization Users Reference Guide

Oracle India Localization

Basic Business Needs

Default Tax Category at the transaction level.

Define the Receiving Organization as the Internal Customer

Default taxes at the time of receiving

Define Other Taxes at the time of Receiving in the Receiving Organization

Update Excise Records at the time of Receiving in the Receiving Organization

Claim Credit for CENVAT able Taxes in the Receiving Organization

Generate Accounting Entries for CENVAT Credit in the Receiving Organization

Update VAT Records at the time of Receiving in the Receiving Organization

Claim VAT Credit at the time of Receiving in the Receiving Organization

Oracle India Localization Users Reference Guide

Oracle India Localization

Oracle India Localization Users Reference Guide

Oracle India Localization

Oracle India Localization Users Reference Guide

Oracle India Localization

Inter Organization Transfer - Set Up

Oracle India Localization Users Reference Guide

Oracle India Localization

Step 1 Define Organization Additional Information

Step 2 Define Organization Trading Information

Step 3 Define Excise Invoice Generation

Oracle India Localization Users Reference Guide

Oracle India Localization

Step 4 Define Sub Inventory Location

Step 5 Define Localization Item Information

Step 6 Define Inter Organization Relationship

Step 7 Define Tax Codes

Step 8 Define Tax Categories

Oracle India Localization Users Reference Guide

Oracle India Localization

Step 9 Define Item Categories

Step 10 Define Assessable Price Lists

Step 11 Define VAT Regime

Step 12 Define VAT Claim Terms

Step 13 Define VAT Generation Sequence

Step 14 Define Customer Additional Information

Oracle India Localization Users Reference Guide

Oracle India Localization

Processing Inter Organzation Transfer Transactions

Oracle India Localization Users Reference Guide

Oracle India Localization

,Oracle9i, PC Express, Personal Express, PJM Advantage, PL/SQL, ProAda, ProC