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PEBS PENNAR LIMITED

BP.80 FUTURE PROCESS MODEL


INDIA LOCALIZATION
Author:
Creation Date:
Last Updated:
Document Ref:
Version:

Banne/Suresh C Mishra
March 14th, 2014
March 14th, 2014
FIN/IL/1A
Draft 1A

Approvals:
Venkatesh Chekkilla
Stravis
Manager

Project

Anil Rachamalla
Stravis
Project Head

Document Control
Change Record
1

Date
March
2014

14,

Author

Versio
n

Change Reference

Nagraj Banne

Draft
1A

No Previous Document

Suresh
Mishra

Reviewers

Name

Position

Venkatesh C.

Stravis Project Manager

Anil

Stravis Project Head

Distribution

Copy
No.

Name

Location

Library Master

Stravis Project Library

Note to Holders:
If you receive an electronic copy of this document and print it out,
please write your name on the equivalent of the cover page, for
document control purposes.
If you receive a hard copy of this document, please write your name on
the front cover, for document control purposes.

Contents

Document Control............................................................................. ii
Introduction...................................................................................... 5
Scope and Assumptions....................................................................6
Scope........................................................................................... 6
Assumptions................................................................................ 6
Terminology...................................................................................... 7
Event Catalog................................................................................... 8
Visio Business Process Flow - FIN-J 01: EXCISE DUTY PROCESS.......9
Process Flow Diagram..................................................................9
Process Flow Details FIN-J 01: EXCISE DUTY PROCESS...........10
Visio Business Process Flow - FIN-J 02: VAT PROCESS...................11
Process Flow Diagram................................................................11
Process Flow Details FIN-J 02: VAT PROCESS.........................12
Visio Business Process Flow - FIN-J 03: CUSTOMS DUTY PROCESS 13
Process Flow Diagram................................................................13
Process Flow Details FIN-J 03: CUSTOMS DUTY PROCESS......14
Visio Business Process Flow - FIN-J 04: SERVICE TAX PROCESS......15
Process Flow Diagram................................................................15
Process Flow Details FIN-J 04: SERVICE TAX PROCESS...........16
Visio Business Process Flow - FIN-J 05: TDS PROCESS...................17
Process Flow Diagram................................................................17
Process Flow Details FIN-J 05: TDS PROCESS........................18
Visio Business Process Flow - FIN-J 06: TCS PROCESS...................19
Process Flow Diagram................................................................19
Process Flow Details FIN-J 06: TCS PROCESS.........................20
Visio Business Process Flow - FIN-J 07: CST PROCESS...................21
Process Flow Diagram................................................................21
Process Flow Details FIN-J 07: CST PROCESS.........................22
Supporting Requirements...............................................................23

Interfaces................................................................................... 23
Data Migration...........................................................................23
Transactional Data.....................................................................23
Security..................................................................................... 23
Roles and Responsibilities..........................................................24
Integration Touch Points.............................................................24
Documents attributable to the Process......................................24
Reports...................................................................................... 25
Additional Setup Required.........................................................25
Non Standard Workflows............................................................25
Templates..................................................................................25
Other Requirements...................................................................26
Business Process Impact.................................................................27
Gap Analysis................................................................................... 28
require further resolution)...............................................................29
Closed Items (items resolved from the Open Issues List)...............30

Introduction
Information Gathering
The Future Process Model for India Localization Business Flow is based on information gathered from
the following sources:

Macro Level Processes Flows

Workshops to review the current business process and requirements.

The purpose of this document is to map out the future MSSL Business Processes based on discussion
with MSSL Core Team..
This is to confirm the requirements defined in the business workshops.
The process of mapping makes sure that the new Business Process supports MSSL business
requirements. The mapped areas are:

The business requirements attached to the business process steps

Report requirements

Data requirements

Process Change is also highlighted in this document

Scope and Assumptions


Scope
India Localization Process Flow
India Localization taxes business flow includes following processes / business scenarios:

Excise Duty

Value Added Taxes

Customs Duty

Service Tax

Tax Deducted at Source

Tax Collected at Source

Central Sales Tax

Application Modules required


The application modules used to implement Customer Invoice to Receipt business flow are:

Order Management

Receivables

General Ledger

Payables

Purchasing

Assumptions
The following assumptions have been made during the design of Customer Invoice to Receipt process
1. Use of Standard Oracle Process flows wherever applicable

Terminology
The Oracle implementation introduces new terminology as defined in the table below.

Term

Explanation

Accounting Flexfield

The code you use to identify a general ledger account in an Oracle Financials application. Each
Accounting Flexfield segment value corresponds to a summary or rollup account within your chart of
accounts

Auto Invoice

ERS , Invoice against the different Authority , CM for deducting TDS use to generate automatically

BOE

Bill of Entry is document which is require at the time of importing of material

DFF

Descriptive Flex Field. This is used to capture additional information against various objects like opportunity, estimate, order etc where the
standard fields are not enough.

RG - Consolidation

Use to Tally the RG and GL Balances

VAT/Service Tax Settlement

By this Settlement Process help to generate the net liability against the Authority for periods

Event Catalog
This component lists all events to which the business responds.

Anexampleofaneventisacustomerorder.Inrespondingtothecustomerorderthebusinessexecutesaprocess.Filloutthefollowinginformationforeacheventthatis
identified:
Event

ID:

Give

each

event

unique

identification.
Name:

Name

each

event

as

clearly

as

possible.
Type:
Events may be external, internal or temporal (for example, occur at a predetermined time).
Description:

Briefly

describe

the

event.
Frequency:

Indicate

frequency;

for

example,

10/hour,

1/week,

or

monthly.
Thiscomponentlistsalleventstowhichthebusinessresponds.
OBM Process Group

Type

OBM Process Group Description

Frequency

FIN-J

India Localization Taxes

Overall India localization tax process

FIN-J-01

Excise Duty

Describes Excise duty process from


Purchasing to Sales and the payment
of Excise duty payment

Daily

FIN-J-02

Value Added Taxes

Describes VAT process from Purchasing


to Sales and the payment of VAT
payment

Daily

FIN-J-03

Customs Duty

Describes Customs Duty process of


Import Materials and along with the
CVD credit taking.

As
and
required

FIN-J-04

Service Tax

Describes Service Tax process from


Purchasing to Sales and the payment
of Service Tax.

Daily

FIN-J-05

Tax Deducted at Source

Describes Tax Deducted at Source


process for Purchasing and the
payment of the same.

Daily

when

OBM Process Group

Type

OBM Process Group Description

Frequency

FIN-J-06

Tax Collected at Source

Describes Tax Collected at Source


process for sales and the payment of
the same.

Daily

FIN-J-07

Central Sales Tax

Describes Central Sales Tax process for


purchase sales and the payment for
CST charged in Sales invoices to Govt
Authority.

Daily

Oracle Business Process Flow - FIN-J 01: EXCISE DUTY PROCESS


Process Flow Diagram

Process Flow Details FIN-J 01: EXCISE DUTY PROCESS

Process Name Process Description


Process
Identifier

Primary
Application
Module

Standard
(Yes/No)

FIN-J-01.001

Create PO with At Purchase Order level we need to attach Purchasing


Tax Category the required Tax category. Tax category can
be attached to line items if the Tax category
is different for that item. Once Tax screen is
saved, tax amount can be noticed in the PO.
CENVAT/VAT recovery flag to be checked at
PO level.

Yes

FIN-J-01.002

Receive Good Receive goods in India Localization, Receipt. Purchasing


Enter the Excise Invoice number and date.
( Make GRN)
This will appear in Excise register. Save the
Receipt on entering the goods received.

Yes

FIN-J-01.003

Claim Cenvat Enable Claim CENVAT on receipt and press Purchasing


and
Excise populate
defaults.
On
saving
Excise
Accounting
Accounting will be created.

Yes

FIN-J-01.004

Enter Invoice Enter the invoice in AP and match the invoice payables
in
AP
and with PO/Receipt. In the invoice line details
Match invoice will have taxes also under type Misc.
to PO/Receipt

Yes

FIN-J-01.005

Create SO with Create Sales Order with tax category and Order
Yes
Tax Category complete the ship order.
Management
and ship order

FIN-J-01.006

Review invoice In India Localization transaction query the Receivables


interfaced
with Excise invoice Number generated. View
from OM and the AR invoice by opening the India
Complete AR Localization transaction review and complete
invoice.
the invoice.

Yes

Fit Gap Identified?

Process Name Process Description


Process
Identifier

Primary
Application
Module

Standard
(Yes/No)

FIN-J-01.007

Perform
RG In this form we can see the status of Excise Receivables
Consolidation duty payable.RG23A/C Part II balance transfer
to PLA option is available in this form. The
net PLA payable can be processed in this
form for AP invoice creation.

Yes

FIN-J-01.008

View
PLA Invoice created from RG consolidation form Payables
Invoice
and can be acquired
in AP invoice workbench
make payment with Excise authority supplier name.
On
making the payment, payment entries can be
viewed in PLA Register

Yes

FIN-J-01.009

Import
India Through GL interface
we have to bring General
Taxes from GL Localization Tax entries in GL.
Ledger
interface.

Yes

Fit Gap Identified?

Oracle Business Process Flow - FIN-J 02:


Process Flow Diagram

VAT PROCESS

Process Flow Details FIN-J 02:

VAT PROCESS

Process Name Process Description


Process
Identifier

Primary
Application
Module

Standard
(Yes/No)

FIN-J-02.001

Create PO with At Purchase Order level we need to attach Purchasing


Tax Category the required Tax category. Tax category can
be attached to line items if the Tax category
is different for that item. Once Tax screen is
saved, tax amount can be noticed in the PO.
CEVAT/VAT recovery flag to be checked at PO
level.

Yes

FIN-J-02.002

Receive Good Receive goods in India Localization, Receipt. Purchasing


Save the Receipt on entering the goods
( Make GRN)
received.

Yes

FIN-J-02.003

Claim Vat and Select Claim VAT, system will show VAT claim Purchasing
Excise
form. In populate default section enter
Accounting
processing action, invoice no., date and press
populate default option. This will default the
details at item line level. Save the form and
query the form to check VAT Claim status.
VAT accounting will happen on saving the
screen.

Yes

FIN-J-02.004

Enter Invoice Enter the invoice in AP and match the invoice payables
in
AP
and with PO/Receipt. In the invoice line details
Match invoice will have taxes also under type Misc. Review
to PO/Receipt the VAT amount.

Yes

FIN-J-02.005

Create SO with Create Sales Order with tax category and Order
Tax Category

Yes

Fit Gap Identified?

Process Name Process Description

Primary
Application
Module

and ship order complete the ship order.

Management

Process
Identifier

Standard
(Yes/No)

FIN-J-02.006

Review invoice In India Localization transaction query the Receivables


interfaced
with VAT invoice Number generated. View
from OM and the AR invoice by opening the India
Complete AR Localization transaction review and complete
invoice.
the invoice.

Yes

FIN-J-02.007

VAT
settlement

Yes

FIN-J-02.008

View
VAT Invoice created from VAT Settlement form Payables
Invoice
and can be quired in AP invoice workbench with
make payment VAT authority supplier name.
Make the
payment.

Yes

FIN-J-02.009

Import
India Through GL interface
we have to bring General
Taxes from GL Localization Tax entries in GL.
Ledger
interface.

Yes

In this form we can see the status of VAT Receivables


payable. On processing, VAT payable invoice
will be generated in AP invoice workbench.

Fit Gap Identified?

Oracle Business Process Flow - FIN-J 03:

CUSTOMS DUTY PROCESS

Process Flow Diagram

Process Flow Details FIN-J 03:

CUSTOMS DUTY PROCESS

Process Name Process Description


Process
Identifier

Primary
Application
Module

Standard
(Yes/No)

FIN-J-03.001

Create PO with At Purchase Order level we need to attach Purchasing


Tax Category the required Tax category. Tax category can
be attached to line items if the Tax category
is different for that item. Once Tax screen is
saved, tax amount can be noticed in the PO.
Customs duty recovery flag to be checked at
PO level.

Yes

FIN-J-03.002

Create
and Customs duty advance payable can be made Payables
pay
through prepayment invoice. On making
Prepayment
prepayment invoice, validate, account and
for
Customs make payment.
Duty

Yes

FIN-J-03.003

Create
BOE In BOE invoice we can enter the details Payables
Invoice
in relating BOE such as Assessable Value,
India
Customs duty, Excise duty Edu and SH cess
localization
etc. On salving BOE, system will generate
Payables
BOE Number. This Number can be used as
reference for BOE adjustment in India
Localization BOE receipts. BOE Invoice
created will be appearing in AP invoice
workbench
under
Customer
Authority
supplier.

Yes

FIN-J-03.004

Query
BOE BOE invoice in AP invoice workbench need to Purchasing
invoice in AP be adjusted with prepayment made earlier.
invoice
work Only paid BOE invoices BOE Number will
bench
and appear India Localization Receipt, Apply
apply relevant BOE Form .
prepayment
invoice.

Yes

FIN-J-03.005

Receive Good Receive goods in India Localization, Receipt. Purchasing


Enter the BOE Invoice number and date. This

Yes

Fit Gap Identified?

Process Name Process Description


Process
Identifier

( Make GRN)

Primary
Application
Module

Standard
(Yes/No)

will appear in Excise register.


Save the
Receipt on entering the goods received.

FIN-J-03.006

Claim BOE and India Localization Purchase Receipts Apply Purchasing


BOE
BOE, we have to apply BOE amount through
Accounting
relevant BOE Number selection. One BOE
Invoice amount can be partially used as per
receipt and is available for future receipts
applications.

Yes

FIN-J-03.007

Query
BOE Applied BOE amount can be checked with Payables
invoice in India BOE invoice form.
Applied amount will
Localization
appear for verification. If small amount left
Payables
out in BOE (rounding of difference etc) can be
transferred to BOE Write off Expense account.

Yes

FIN-J-03.008

Import
India Through GL interface
we have to bring General
Taxes from GL Localization Tax entries in GL.
Ledger
interface.

Yes

Fit Gap Identified?

Oracle Business Process Flow - FIN-J 04: SERVICE TAX PROCESS


Process Flow Diagram

Process Flow Details FIN-J 04: SERVICE TAX PROCESS

Process Name Process Description

Primary
Application
Module

Process
Identifier

Standard
(Yes/No)

FIN-J-04.001

Create PO with At Purchase Order level we need to attach Purchasing


Tax Category the required Tax category. Tax category can
be attached to line items if the Tax category
is different for that item. Once Tax screen is
saved, tax amount can be noticed in the PO.

Yes

FIN-J-04.002

Receive Good Receive


Receipt.
( Make GRN)

Yes

FIN-J-04.003

Enter Invoice Enter the invoice in AP and match the invoice payables
in
AP
and with PO/Receipt. In the invoice line details
Match invoice will have taxes also under type Misc. Review
to PO/Receipt the Service Tax amount.

Yes

FIN-J-04.004

Pay Invoice

Yes

FIN-J-04.005

Create SO with Create Sales Order with Service tax category Order
Yes
Tax Category and complete the ship order.
Management
and ship order

FIN-J-04.006

Review invoice In India Localization transaction query with Receivables


interfaced
Service Tax invoice.. View the AR invoice by
from OM and opening the India Localization transaction,
Complete
AT review and complete the invoice.
invoice.

Yes

FIN-J-04.007

Apply receipt Service Tax on Sales invoice will become Receivables


to invoice
liable for service Tax payment only on receipt
of invoice amount from the customer. Apply

Yes

services

in

India

Localization, Purchasing

Service Tax credit is available only on making payables


payment. Hence we need to make payment
for availing Service Tax credit.

Fit Gap Identified?

Process Name Process Description


Process
Identifier

Primary
Application
Module

Standard
(Yes/No)

the receipt amount to service tax invoice and


complete accounting.
FIN-J-04.008

Service
Tax In this form we can see the status of Service Receivables
Settlement
Tax balance amount. On processing, Service
Tax payable invoice will be generated in AP
invoice workbench. If the net balance is
recovery, then no Service tax payment
processing can be done.

Yes

FIN-J-04.009

View Service Invoice created from Service Tax Settlement Payables


Invoice
and form can be quired in AP invoice workbench
make payment with Service Tax authority supplier name.
Make the payment.

Yes

FIN-J-04.010

Import
India Through GL interface
we have to bring General
Taxes from GL Localization Tax entries in GL.
Ledger
interface.

Yes

Fit Gap Identified?

Oracle Business Process Flow - FIN-J 05:


Process Flow Diagram

Process Flow Details FIN-J 05:

TDS PROCESS

TDS PROCESS

Process Name Process Description

Primary
Application
Module

Process
Identifier

Standard
(Yes/No)

FIN-J-05.001

Create PO with At Purchase Order level we need to attach Purchasing


Tax Category the required service Tax category.
Tax
category can be attached to line items if the
Tax category is different for that item. Once
Tax screen is saved, tax amount can be
noticed in the PO.

Yes

FIN-J-05.002

Receive Good Receive


Receipt.
( Make GRN)

Yes

FIN-J-05.003

Create invoice, Usual invoice creation for service supplier in Payables


Match invoice AP invoices workbench and matching
and
Validate PO/Receipt to be done. On validation, system
invoice
will generate D. Note for the supplier as per
default TDS tax attached to this supplier
additional information.

Yes

FIN-J-05.004

Review
TDS On validation of Service Invoice, system Payables
Debit
Memo generates TDS D. Note to supplier and
and Invoice.
Invoice to Income Tax Authority. Validate and
account both supplier D. Note and Income
Tax authority Invoices. If not done to that
extent TDS clearing account will have
balance.

Yes

FIN-J-05.005

Pay
TDS Necessary payment to TDS authority can be Payables
invoices
made from AP payment on due date as
created
at required.
month end

Yes

FIN-J-05.006

Process
TDS TDS Certificate can be processed on making Payables
Certificates
TDS payment.

Yes

FIN-J-05.007

Import
India Through GL interface
we have to bring General
Taxes from GL Localization Tax entries in GL.
Ledger

Yes

services

in

India

Localization, Purchasing

Fit Gap Identified?

Process Name Process Description


Process
Identifier

interface.

Primary
Application
Module

Standard
(Yes/No)

Fit Gap Identified?

Oracle Business Process Flow - FIN-J 06:


Process Flow Diagram

TCS PROCESS

Process Flow Details FIN-J 06:

TCS PROCESS

Process Name Process Description


Process
Identifier

Primary
Application
Module

Standard
(Yes/No)

FIN-J-06.001

Create SO with Create Sales Order with TCS tax category and Order
Yes
TCS
Tax complete the ship order.
Management
Category and
ship order

FIN-J-06.002

Review invoice In India Localization transaction query the Receivables


interfaced
with TCS invoice Number generated. View
from OM and the AR invoice by opening the India
Complete AR Localization transaction review and complete
invoice.
the invoice.

Yes

FIN-J-06.003

TCS
Tax In this form we can see the status of TCS Tax Receivables
Settlement
balance amount. On processing, TCS Tax
payable invoice will be generated in AP
invoice workbench. As there would not be
credit adjustment available for TCS, entire
TCS collected are to be paid.

Yes

FIN-J-06.004

View
TCS Invoice created from TCS Tax Settlement form Payables
Invoice
and can be quired in AP invoice workbench with
make payment TCS authority supplier name.
Make the
payment.

Yes

FIN-J-06.005

Process
TCS TCS Certificate can be processed on making Receivables
Certificates
TCS payment.

Yes

FIN-J-06.006

Import
India Through GL interface
we have to bring General
Taxes from GL Localization Tax entries in GL.
Ledger
interface.

Yes

Fit Gap Identified?

Process Name Process Description


Process
Identifier

Primary
Application
Module

Standard
(Yes/No)

Fit Gap Identified?

Oracle Business Process Flow - FIN-J 07:


Process Flow Diagram

CST PROCESS

Process Flow Details FIN-J 07:

CST PROCESS

Process Name Process Description


Process
Identifier

Primary
Application
Module

Standard
(Yes/No)

FIN-J-07.001

Create PO with At Purchase Order level, we need to attach Purchasing


Tax Category the required Central Sales Tax category. Tax
category can be attached to line items if the
Tax category is different for that item. Once
Tax screen is saved, tax amount can be
noticed in the PO. No recovery flag will be
enabled as there is no credit is available on
CST.

Yes

FIN-J-07.002

Receive Good Receive goods in India Localization, Receipt. Purchasing


Save the Receipt on entering the goods
( Make GRN)
received. On saving system generates
accounting entries.

Yes

FIN-J-07.003

Enter Invoice Enter the invoice in AP and match the invoice payables
in
AP
and with PO/Receipt. In the invoice line details
Match invoice will have taxes also under type Misc. Review
to PO/Receipt the Central Sales Tax amount.

Yes

FIN-J-07.004

Create SO with Create Sales Order with tax category and Order
Yes
Tax Category complete the ship order.
Management
and ship order

FIN-J-07.005

Review invoice In India Localization transaction query the Receivables


interfaced
with CST invoice.. View the AR invoice by
from OM and opening the India Localization transaction
Complete AR review and complete the invoice.
invoice.

Yes

FIN-J-07.006

Create Invoice As CST functionality is not directly available payables


for
making in the system , no settlement form is

Yes

Fit Gap Identified?

Process Name Process Description


Process
Identifier

CST payment

FIN-J-07.007

Primary
Application
Module

Standard
(Yes/No)

available in the system. We have to arrive


the CST payment amount from Sales invoices
created during the month (Sales invoice
register) and make the payment to Sales Tax
Authority.

Import
India Through GL interface
we have to bring General
Taxes from GL Localization Tax entries in GL.
Ledger
interface.

Yes

Fit Gap Identified?

Supporting Requirements
Interfaces
Details of interfaces in the process flow. The assumption is that these interfaces will be automated.

Interface

Description
interface)

(Purpose

and

summary

of

the

Data Migration
Details of data migration/conversion required for this process

Data Required to be
Migrated

Description (list the type (current, non current,


purpose of the migration)

Transactional Data
Details of data requirements during the transitional period.

Transactional Data to
be Migrated in
Transitional Period

Description (summary of the transitional data


requirements)

Security
Details of security requirements

Security

Description
(summary
requirements)

Roles and Responsibilities


Details of the roles and responsibilities within applications
Type

Role

Responsibilit
y

Functions

of

the

security

Integration Touch Points


Details of the touch points with Oracle and Non Oracle applications

Integration point

Description (list the Oracle and non Oracle


systems that are used or affected in this
process)

Documents attributable to the Process


Details of the touch points with Oracle and Non Oracle applications

Document

Description (list the purpose, use and storage of


the documents)

Reports
Details of the reports used in this process that needs to be custom built

Reports

Description (summary of the report)

Reports

Description (summary of the report)

Additional Setup Required


Details of any additional application setups required. The Opportunity to Order BF016 will contain the detail of standard
configurations including reference to the requirement for manual or automated entry

Setup
to
changed

be

Description (list the reasons for the change)

Non Standard Workflows


Details of non-standard workflows required (e.g. workflow approvals of templates)

Workflow

Description (provide details of Non Oracle


Application workflows)

Templates
Details of any additional templates required

Template / Form

Description (describe the template or form


and how it will be used)

Other Requirements
Details of any other requirements that need to be captured e.g. documents to be attached to the application

Requirement

Description
(list
requirement)

the

reasons

details

of

Business Process Impact

Gap Analysis

CEMLI
No

Gap Identified and description

Possible
Solutions/Workaroun
ds

Recommend
ed
Solution
/Workaroun
d

Type
Change
(CEMLI)

of

Priority

Complexity

MH/SH/CH/
WH

(H / M / L)

Status

(require further resolution)


Seq/BD Seq

Issue
Question

Resolution

Responsibility

Target
Date

Impact
Date

Closed Items (items resolved from the Open Issues List)


Seq

Issue
Question

Resolution

Responsibility

Target Date

Impact Date

Seq

Issue
Question

Resolution

Responsibility

Target Date

Impact Date

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