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OFI GST Functional O2C Flow Phase1
OFI GST Functional O2C Flow Phase1
Change Record
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12.2 Implementation team
12.2 Customers
The Financials for India functionality lets you satisfy all your needs related to Tax calculation required for
a Sales order Transaction
1.1 - Scope
This document provides the Functional overview for ‘Oracle Financials for India’ (OFI) product on the
Order to Cash front. The document helps you with the setups required for transacting Order to Cash
Cycle with respect to GST.
Note: The current content has been compiled in reference to the frozen scope of the Phase-I
deliverables (Ref: GST Phase -1 Deliverables.docx)
2. Tax Type
3. Tax Rates
9. Document Sequencing
Steps 10 and 11 are specific to Financials for India Order Management for tax defaultation to AR and
document sequence generation
Global Parameters
Please Note in that GST Solution the significant change is such that there is no specific form by name
Sales Order(Localized)
Users can create sales orders directly Navigating to the base form itself
a) Create a Sales Order. Provide all the required Header and Line Information
Tools
India Tax
Details
6 Tax Point Basis Will get defaulted from the tax type and users No
cannot modify the same.
Taxes,Tax Point
Basis,Currency,Tax
Amount, Customer details,
Invoice Number and date
details are captured in this
block
Status: Booked
(N) Oracle Order Management Shipping Transactions Provide Order Number Click
on Find Delivery Ship Confirm
g) Navigate to Tools India Tax Details to check the taxes and Invoice number
TPB:Delivery
To sequence the invoice number for different transaction types, it is required that to assign a prefix to a
sequence series. And as far as legal requirement, the sequence should be refreshed at the beginning of a
new fiscal year. So we should allow user to assign effective dates for a sequence series
(N) Oracle Financials for India Tax Configuration Define Document Sequencing
2 Start Number You can specify the Start Number for a Yes
specific Sequence
3 Current Number This field will display the current document Yes
sequence that is used.
6 Start date You should pick the start date here. Yes
7 End Date You can give a end date to disable the Yes
sequencing.
1 Tax Regime Name Tax Regime Name that used has already Yes
defined in the Tax Regime. Pick the value
from the LOV
1.Operating Unit
2.Inventory Organization
4 Organization Name You can pick the organization here. LOV Yes
contains Organizations related to the
registration number and Organization Type
selected above
6 Document Type You can pick the document type here. Yes
LOV contains:
1. AR Transactions
2. Corrections
3. Default
4. Inter Org transfer
5. Manual Entry
6.Receipts
7.Return to Vendor
8.Sales Order .
7 Document Category You can pick the document category here Yes
The document category name depends upon
the document type selected above.
8 Item Classification Pick the Item Classification from the LOV Yes
"Order to cash" (O2C or OTC) normally refers to the business process for receiving and processing
customer sales.
The term is most prominent in the design and improvement of Enterprise Resource Planning (ERP)
systems
In the previous chapter we have already covered until Sales Order. The remaining steps are explained
below
AutoInvoice is a concurrent program that interfaces Sales Orders from Order Management to Invoices in
Accounts Receivable.
Sales
Order 46
AutoInvoice Import
Program Completed
Normal
c) Find Transactions
f) Taxes from Sales order has got defaulted and the Invoice number is also defaulted
NOTE: As TPB for the tax type is Delivery, there will not be any accounting entries passed specifically by
Oracle Financials for India
As TPB for the tax type is Delivery, there will not be any accounting entries passed specifically by Oracle
Financials for India
NOTE: Two taxes are added with different Tax Types to illustrate accounting based on TPB
Tax Point Basis will get defaulted after ship confirm for TPB as “Delivery” and after AutoInvoice for TPB
as “Invoice”
During Ship Confirm accounting and Invoice Number Generation will happen only for the Tax Type with
TPB as “Delivery”
Invoice Number
GST-O2C5
5.2 – AutoInvoice
a) OFI Inserts Tax Distributions for below taxes with below accounts and generates Invoice Number
for Tax Type with TPB as “Invoice”
NOTE: OFI just inserts the tax distributions with respective accounts but the accounting will be done for
above from Base “Create Accounting”
Please Note in that GST Solution the significant change is such that there is no specific form by name
Transactions (Localized)
Users can create AR Transactions directly navigating to the base form itself
a) Create the Header, Bill-To, Ship-to etc and save the transaction
On completion of invoice
the Invoice number gets
generated from the
Document Sequencing
setup
Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 42
g) Account and view the accounting
Eg : If you buy a Warranty for a product in this case there is not physical shipment needed
If you have requested for a service of any product , in this case you are requesting the visit of a technician
to come and service , no physical shipments might be involved
On booking the Order the line status changes to BOOKED Please make not that line does not go into
Awaiting Shipping status
Click on Line
Items and fill
the line level
details
Taxes gets
defaulted and
Invoice number
GST-O2C13 gets
created
Apart from above entries which are created by Base, OFI creates below accounting as well as
TPB is “Delivery”
Case1
a) NOTE : Tax rate is 16% till 14-APR-2016 and the same is 20% starting from 15-APR-2016
Tax : O2C_REC_16%
Invoice Date
15-APR-2016
Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 56
e) After running autoinvoice import the taxes on fulfilled orders gets carried forward to the AR
invoice as well
a) NOTE : The tax rate is 14% on 05-MAY-2016 to 06-MAY-2016 for Tax rate code
GST_O2C_INVOICE_12 which has TPB as “INVOICE” and the same is 7% starting from 07-
MAY-2016
For further reference, you can also refer the below Pre-Release documents released as a part of the
EBS GST Infrastructure Scope: