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RG Consolidation & Fund Transfer by Naveen Vaddadi

Principal Software Engineer

Date : 9th Feb 2011

Agenda
1.RG Consolidation Salient Features : i. ii. iii. iv. Intended Behavior Table architecture How does it works ? List of Popup Errors

2.RG Fund Transfer Form: i. How does it works ? ii. What Is the purpose iii. Intended Behavior 3. View Register Balance Form

Agenda
4.RG Consolidation Scenarios 5.Reports
i. ii. iii. iv. v. India Excise Reconciliation Concurrent India RG Period Balance Concurrent India RG23 Part-II Report India PLA Register Report Master Organization Request set

6.Generic data fixes 7.Period/Month end best practices

What Is RG Consolidation ? Introduction:

As per Central Excise Act, the company should calculate the amount of excise liability on its dispatches, and pay the same to the exchequer from time to time. While calculating such liability the company can utilize CENVAT credit on its purchases. Oracle Ebusinees suite provided functionality through which one can arrive the net excise liability payable to the exchequer.

India Local Payables Registers RG Consolidation Screen

RG Consolidation Salient Features:

Displays the balances register wise for a selected organization, location combination Allows us to transfer the credit available in CENVAT accounts to PLA liability for the selected Organization and Location combination. Creates a PLA Payment and AP Invoice for the liability. Creates a GL entry setting off PLA with the CENVAT accounts. Useful screen to reconcile excise balances with the RG Reports

RG Consolidation can be done with back date but before Financial year
RG Consolidation entries creation dates: RG 23A Registers Consolidation date AP Invoice TR6 Challan date PLA Registers TR6 Ack.date

Things to make NOTE:

The RG Consolidation functionality is not supposed to be used for creation of Positive balance in PLA.

This is to be used only for making the Negative PLA Balance to Zero , by making payments for the PLA out standing.
For Creating a positive PLA Balance, PLA Manual entry form can be used.

Balances of one organization can be transferred to another organization using RG FUND TRANSFER form
The form will not allow to do new RG consolidation with open acknowledgement receipt and date.

Intended Behavior:
The Balances in the Excise Register reports should match with the RG Consolidation balance, View RG Balances and RG reports. After keeping the desired balances on the RG Consolidation form and save an AP Invoice would be created on the Excise Authorities for the liability. RG Consolidation form will not allow to settle balances keeping PLA >= ZERO The form allows to save only if there is payment liability against the excise authorities. PLA invoice number will get generated in AP with combination of PLA/Invoice/ Org_id /PAYMENT ID This Form dont allow to query the settled transactions. Users advised to take snap shots of the screen after saving the form but before doing exit.

Table Architecture
RG Consolidation JAINRGCO.fmb

(11i) JA_IN_RG_CONSOLIDATION (R12) JAI_CMN_RG_CONSLDATIONS

GL Interface : Table:gl_interface Source: Payables India Link:Consolidation_ID

AP Interface : Invoice No : PLA/INVOICE/ Org_ID /PAYMENT ID

PLA Invoice Form : JAI_CMN_RG_PLA_ DTLS PAYMENT ID

Excise Registers : Remarks

gl_je_lines

ap_Invoices_all

Query Form

RG 23 Part II

PLA Register

(11i) JA_IN_RG_CONSOLIDATION : (R12) JAI_CMN_RG_CONSLDATIONS

This table stores data of the RG Consolidation form. Remark Colum of this table shows default and user remark of the rg consolidation. Payment id filed will show payment id of the form, this acts as a link between the transaction In the table and the form. Excise Payment can be generated either from the rg consolidation form or from the PLA manual entry form

India Local Payables Registers RG Consolidation Screen

Part - I

Part - II

Part - III

List Of Popup Error/Messages

List Of Popup Error :

Error I

Error II

Error III

Error IV

RG Fund Transfer Form

How does it works ?

What is the purpose of this Form : Business Case I : There may be a scenario, where there are multiple Inventory organizations with in one OU having same EC Code. If each organization is having specific activity i.e., one IO may be doing only shipments and another IO may be doing only Purchasing activity. In this scenario PLA liability would be in one organization and CENVAT Credit would be in another Organization. Since RG consolidation works at IO and Location, in current scenario users cant do consolidation, however we can achieve this through RG fund transfer form, by transferring PLA balance of one organization to the organization where CENVAT balances exist.

What is the purpose of this Form :

Business Case II : If an Organization is having more than one Inventory org with the same EC Code :

In this case balance of PLA and RG23 A can be transferred to one organization and business can do consolidaiton.

Intended Beheaviour :
Can transfer funds across inv org, only consolidated amounts will get transferred and not the transactions. Can transfer balances of RG23 A to RG23 A of another organization

This form does not have any validation with EC code, balances of one Org falling under one EC Code can be transferred to another org which is falling under different EC Code.
Need to use the form judiciously.

All the inventory organizations should be under same OU

Data in this form will get stored in table (11i) JA_IN_RG_FUND_TRANSFER (R12) JAI_CMN_RG_TRANSFERS Form will not validates Organization Mfg or Trading On saving the form setoff entries will be passed in GL and Rg tables, the impact of transaction can be seen in the Rg reports.

View Register Balance

Navigation : Registers >

View Register Balance

View Register Balance Forms : JAINVBAL.fmb

Purpose :
User can view the Excise Registers balances as on system date and time. The balances of this form should match with the RG Consolidation Closing balances as on today's date. This form shows the values for RG23A Part-II, RG23C Part-II and PLA balances. The form fetch data from: JAI_CMN_RG_BALANCES_V

Scenarios

Scenarios
a. Scenario 1 : PLA Manual Entry Transaction
b. Scenario 2 : RG Fund Transfer. c. Scenario 3 : PLA Manual AP Invoice i. ii. Scenario 4a : Consolidation when there is no PLA liability Scenario 4b : Transfer of Cess Balances from RG consolidation to PLA Cess. d. Scenario 4 : RG Consolidation :

iii.

Scenario 4c : Consolidation when there is PLA liability.

UPK

Reports

Purpose How to Use When to use

India Excise Reconciliation Concurrent

This Concurrent is used to Identify and fix any data inconsistencies in Excise Registers. Submit requests from India Local Purchasing module or India Local Payables module

Purpose
This concurrent should submit before doing RG Consolidation. Manual back up need to be taken for 11i Table --------------ja_in_rg23_part_ii ja_in_pla ja_in_rg_balances ja_in_rg_slno ja_in_rg_period_balances R12 table -------------------JAI_CMN_RG_23AC_II_TRXS JAI_CMN_RG_PLA_TRXS JAI_CMN_RG_BALANCES JAI_CMN_RG_SLNOS JAI_CMN_RG_BALANCES

This concurrent is not having any output, only log file will show the balances and errors.

Concurrent Log File

India RG Period Balance Concurrent

This program calls jai_cmn_rg_pbal.plb , which will recalculate the rg balances and insert into JAI_CMN_RG_PERIOD_BALS table.
These balances are maintained on a Monthly basis. These balances are used in the India RG 23 Register Reports. If this request is not run before running India - RG 23 Register Report, then RG23 report ends with below error Run India RG Period Balance concurrent, before running India RG23 Register report

Navigation:
India Local PurchasingReportsRun India - RG Period Balances Calculation

India RG23 Part-II Report

This Report provides you with the information that would be required to meet the Duty. Register requirements specified under the CENVAT Credit Rules 2004.

This report can be submitted both for Raw Material and Capital Goods. You can run the report with the given date range.
Balances of this report should tally with the RG Consolidation form. It is not advised to do RG Consolidation with out getting the balances matched

This report can be use for below purpose

i. ii. iii. Can be submitted to the excise authorities. Can be used to reconcile data with the GL. This report give break up of excise balances in detail.

Navigation:
India Local PurchasingReportsRun India - RG23 Part II Report

India PLA Register Report

This report gives you complete details of Personal Ledger account as per prescribed format specified by Central Excise Act. This report can be use for below purpose i. ii. iii. Navigation : India Local PurchasingReportsRun India - RG23 Part II Report Can be submitted to the excise authorities. Can be used to reconcile data with the GL. This report give break up of transactions for the PLA payment

Master Organization Request set

Navigation : India Localization Purchasing > Request set

How does it works ?

This Concurrent calls, jai_cmn_rg_mst.plb , which execute below procedures: consolidate_rg23_part_ii consolidate_rg_i consolidate_pla consolidate_rg23_part_i

For all the three requests, user should pass organization and Location as parameter.
Only Organizations which were marked as Master will come in the LOV. In the master organization user should not do any excise transactions. Once the request set is submitted the Part 1 and Part II balances will get transferred to Master org. The transfer to master org will happen transaction wise. The request set should submit only after doing rg consolidation in child organization.

Master org is only for reporting purpose, where in reports can be run on master org level.

Important Tables

11i & R12 RG Related tables and its purpose

R11i Table Name
JA_IN_RG_I JA_IN_RG23_PART_i JA_IN_PLA JA_IN_RG23_PART_ii JA_IN_REGISTER_TXN JA_IN_RG23_D

R12 Tables Names

JAI_CMN_RG_I_TRXS JAI_CMN_RG_23AC_I_TRXS JAI_CMN_RG_PLA_TRXS JAI_CMN_RG_23AC_II_TRXS JAI_OM_OE_BOND_TRXS JAI_CMN_RG_23D_TRXS

Purpose
Stores Qty.balances of Finished Goods Stores Qty.balances of Raw Materials Stores PLA related Information Stores balances of CENVAT balances Stores balances of Bond Transaction Stores balances of Trading Organization

JA_IN_SO_TEMP_HDR_INSERT JAI_OM_OE_GEN_TAXINV_T
JA_IN_RG_BALANCES JA_IN_RG_SLNO JAI_RG_OTHERS JAI_RG_OTH_BALANCES JAI_CMN_RG_BALANCES JAI_CMN_RG_SLNOS JAI_CMN_RG_OTHERS

Temp table used for excise invoice generation process It has the RG Register balances for organization and location
It is the control table to generate the next serial number.

This table maintains records regarding cess entries. It has the education cess balances for every payment JAI_CMN_RG_OTH_BALANCES register (RG23A/C and PLA)

(11i) JA_IN_RG23_PART_II - (R12)JAI_CMN_RG_23AC_II_TRXS

Stores Information of RG23A/C Part II Details. This is commonly referred to as the RG Amount Register.

Imp Columns :
REGISTER_ID : FIN_YEAR : SLNO : SLNO will start from 1. CR_BASIC_ED : CR_ADDITIONAL_ED : CR_OTHER_ED : DR_BASIC_ED : DR_ADDITIONAL_ED : DR_OTHER_ED : Excise Amount : OPENING_BALANCE : not included here. CLOSING_BALANCE : not included here. PERIOD_BALANCE_ID : OTHER_TAX_CREDIT : OTHER_TAX_DEBIT : Indicates the Register Identifier - Unique Key Indicates the Financial Year in which the Transaction is carried out. Indicates the Serial No of the Transaction,For the new fin year Indicates the Credit Basic Excise Duty. Indicates the Credit Additional Excise Duty. Indicates the Credit Other Excise Duty. Indicates the Debit Basic Excise Duty. Indicates the Debit Additional Excise Duty. Indicates the Debit Other Excise Duty. is BASIC_ED+ADDITIONAL_ED+OTHER_ED Indicates the Opening Balance for the excise; Cess Amounts are Indicates the Closing Balance for the excise; Cess Amounts are ja_in_rg_period_balances. Period_balance_id Tax Credit that is taken against CESS, SHE CESS tax types. Tax debit that is taken against CESS, SHE CESS tax types.

(11i) JA_IN_PLA: (R12) JAI_CMN_RG_PLA_TRXS

Stores the Transaction Information of PLA Register. REGISTER_ID : Indicates the Register Identifier - Unique Key FIN_YEAR : Indicates the Financial Year in which the Transaction is carried out. SLNO : Indicates the Serial No of the Transaction, For the new fin year SLNO will start from 1. CR_BASIC_ED : Indicates the Credit Basic Excise Duty. CR_ADDITIONAL_ED : Indicates the Credit Additional Excise Duty. CR_OTHER_ED : Indicates the Credit Other Excise Duty. DR_BASIC_ED : Indicates the Debit Basic Excise Duty. DR_ADDITIONAL_ED : Indicates the Debit Additional Excise Duty. DR_OTHER_ED : Indicates the Debit Other Excise Duty. Excise Amount is : BASIC_ED+ADDITIONAL_ED+OTHER_ED OPENING_BALANCE : Indicates the Opening Balance for the excise; Cess Amounts are not included here. CLOSING_BALANCE : Indicates the Closing Balance for the excise; Cess Amounts are not included here. OTHER_TAX_CREDIT : Tax Credit that is taken against CESS, SHE CESS tax types. OTHER_TAX_DEBIT : Tax debit that is taken against CESS, SHE CESS tax types.

(11i) JAI_RG_OTHERS: (R12) JAI_CMN_RG_OTHERS

This is an extension to existing excise tables to store information by tax type (Cess& She Cess). Columns RG_OTHER_ID : RG other unique identifier SOURCE_TYPE : Indicates the table with which the record is linked. Possible value:1 -- JA_IN_RG23_PART_II 2 -- JA_IN_PLA 3 -- JA_IN_RG23_D 4 -- JA_IN_RECEIPT_CENVAT SOURCE_REGISTER : Indicates the register for which transaction happened. Possible values: "RG23A_P2", "RG23C_P2", "PLA", "RG23D", "RECEIPT_CENVAT" SOURCE_REGISTER_ID : Indicates the PK for source Type and register to which this record is linked TAX_TYPE : Indicates the type of tax CREDIT : Amount that is recovered DEBIT : Amount that is setoff against the recovered amount OPENING_BALANCE: Opening balance for this tax type before record is Created CLOSING_BALANCE : Closing balance for this tax type after record is Created

(11i) JAI_RG_OTH_BALANCES: (R12) JAI_CMN_RG_OTH_BALANCES

This table is used in View Register Balances, RG Consolidation form to show the CESS/SHE Cess balances. ORG_UNIT_ID : TAX_TYPE : REGISTER_TYPE : Indicates the Org and Location combination of ja_in_hr_organization_units Indicates the type of tax Possible values: "RG23A ", "RG23C ", "PLA"

Generic data fix

1278534.1 : Generic Datafix For PLA Register Report Or/And RG23 Part II 1160983.1 : Generic Data Fix For 'India RG23A Part II Report balances' A

1278534.1 : Generic Datafix For PLA Register Report Or/And RG23 Part II
1164664.1 : Generic Datafix For PLA Register Report Doesn't Match With V 1161263.1: Generic Datafix for RG Consolidation Results I 1140474.1 : In India - PLA Register Report ,Closing Balance Of Previous

Period/Month end best practices

Period/Month end best practices

Do monthly reconciliation rather doing yearly. Have a Check list for Month end period closure. Run India Receiving Transaction Processor after completing receiving activity in the month end Run India Excise Invoice Generation for all the pending deliveries which are shipped but pending for the excise invoice generation. Reconcile RG1 & 23D Stocks with Physical stocks.

Reconcile RG 23 Part II Registers with GL .

It is recommend to close Periods of base modules on monthly basis. Ensure there are no pending sources in the GL Interface.

Reconciliation Process

Rec.Inventory 150
Receiving

Inventory
Delivery

100 50
Cenvat

100

100

Consumption

RG 23 Part II 50

PLA
Consolidation

50

50

75

Dispatch

Order of reconciliation

Scenario:
Purchase 150 (Basic100+ ED 50) Sale 200 (Basic 125 + ED 75)

PLA CENVAT Inventory Rec. Inventory

Known Issues
Query :RG Consolidation form VS RG Reports Vs View Balances are not matching . Reply : Run India Excise Reconciliation concurrent with option 3, if issue still exist raise SR with support. Query : Can we do transactions in the master organization ? Reply : No, Master Organization is only a reporting organization where in we can take rg reports. Query : Can we do RG Consolidation back dated? Reply : Yes

Query : Can we do excise transaction back dated? Reply : No

Query :Can we do RG consolidation after opening the excise calendar? Reply : No Query: Can we transfer excise balances across ECC code? Reply: Not recommended.

Q&A