Localization Entries in Oracle Apps

It was the time when I was looking for a Knowledge Transfer from any source anywhere and anytime when I came back to India on Job.Immediately I was to take charge of a support project for an Indian Client.You know how complicated our Indian localization both in terms of Oracle and the taxes itself. I was almost like a fresher and badly needed a project and support from various ends to manage.

Though I was not so comfortable with Oracle’s behaviour on Indian Localization, my domain helped me to sustain till I get a good grip over the same. Days went and I got another project. This time another client and they are leading manufacturer across the world. They had branches operating across India too which meant different application of taxes on different branches.
It was no longer anymore that I got to know the entries passed in Oracle on various entries for a manufacturing industry. Thanks to my friend Dinesh who was part of the project and all the below entries you see is captured by him. He had taken lot of efforts to capture all this and now I take the privillege of publishing it on the net on his behalf. I hope many of you can get benefitted fromo this.
In short this is a contribution from Mr. Dinesh, Oracle Functional Consultant.
I wondered on his skills and efforts to capture word by word in the computer when one teaches him something new on Oracle Applications.
Procure to Pay – Localization Entries
Purchase Value 100
Excise 16+ Cess 2+ S.H. Cess 1 19
VAT 4
Non-Recoverable Tax Like Freight 10
At the time of Purchae Order No Entry
Receipts of Inventory (Only Localization Entry)
Receiving Inventory Dr 29.00
VAT Interim Recovery Dr 4.00
To Inventory AP Accrual Cr 33.00
On Generation of AP Invoice
Inventory AP Accrual Dr 133
To AP Liability Cr 133
On Claiming Excise (Cenvat Adj)
RG23APart II (Cenvat RM) Dr 16.00
RG23APart II (Cess RM) Dr 2.00
RG23APart II (S.H. Cess RM) Dr 1.00
(Account code will be picked from
Organization Additional Information)
To Receiving Inventory Cr 19.00
On Claiming VAT
VAT Recovered Dr 4.00
To VAT Interim Recovery Cr 4.00
On Delivery (Non Recoverable)
Material Dr 10.00
To Receiving Inventory Cr 10.00
Order To Cash – Localization Entries
Cost 110.00
Sales Value 130.00
Excise 20.00
VAT 6.00
Sales
COGS Dr 110.00
To Material Cr 110.00
On Generation of AR Invoice
Receivable Dr 156.60
To Excise Paid/Payable Cr 20.00
To Cess  Paid/Payable Cr 0.40
To S.Cess  Paid/Payable Cr 0.20
To VAT Interim Liability Cr 6.00
To Revenue Cr 130.00
After Running India-Excise Invoice Generation (OM)
Excise Paid/Payable Dr 20.00
Cess  Paid/Payable Dr 0.40
S.Cess  Paid/Payable Dr 0.20
To RG23AP II (or) RG23AC II (Cenvat RM) / PLA Cr 20.60
(Credit is based on Register preferences set in org. addl. Info)
After Running India-VAT Invoice Generation/Accounting  (OM)
VAT Interim Liability Dr 6.00
To VAT Liability Cr 6.00
Procure to Pay – Localization Entries (Service Tax)
At the time of Purchae Order No Entry
Receipts of Services
Service Tax Interim Recovery Dr xxx
To Expense AP Accrual Cr xxx
On Generation of AP Invoice
Expense AP Accrual Dr xxx
To AP Liability Cr xxx
After Running India-Service Tax Processing
(Service Tax can be recovered only after Payment)
Service Tax Recovered Dr 80.00
To Service Tax Interim Recovery Cr 80.00
Order To Cash – Localization Entries (Service Tax)
Sales
COGS Dr xxx
To Material Cr xxx
On Generation of AR Invoice
Receivable Dr xxx
To Service Tax Interim Liability Cr 200
To Revenue Cr xxx
After Receipt & Running India-Service Tax Processing
Service Tax Interim Liability Dr 200.00
To Service Tax Liability Cr 200.00
Service Tax Recovered (AP) = Rs.80/-
Service Tax Liability     (AR) = Rs.200/-
On Settlement (Smillar entry for VAT Settlement also)
Service Tax Liability Dr 80.00
To Service Tax Recovered Cr 80.00
Service Tax Liability Dr 120.00
To AP Liability Cr 120.00
(Balance payable to Authority)
Procure To Pay – Customs Localization Entries (Import – BOE)
Recoverable 60.00
Non-Recoverable 40.00
Total 100.00
At the time of Purchae Order No Entry
Receipts of Inventory
Receiving Inventory Dr 100
To  BOE Account Cr 100
On Delivery – Non Recoverable (Moving to FG / Stores )
Material Dr 40
To Receiving Inventory Cr 40
Claiming Excise (Cenvat Adj) – Recoverable Portion
RG23AP II (or) RG23CP II (Cenvat RM) Dr 60
To Receiving Inventory Cr 60

It was the time when I was looking for a Knowledge Transfer from any source anywhere and anytime when I came back to India on Job.Immediately I was to take charge of a support project for an Indian Client.You know how complicated our Indian localization both in terms of Oracle and the taxes itself. I was almost like a fresher and badly needed a project and support from various ends to manage.

Though I was not so comfortable with Oracle’s behaviour on Indian Localization, my domain helped me to sustain till I get a good grip over the same. Days went and I got another project. This time another client and they are leading manufacturers across the world. They had branches operating across India too which meant different application of taxes on different branches.

It was no longer anymore that I got to know the entries passed in Oracle on various entries for a manufacturing industry. Thanks to my friend Dinesh who was part of the project and all the below entries you see is captured by him. He had taken lot of efforts to capture all this and now I take the privillege of publishing it on the net on his behalf. I hope many of you can get benefitted from this.

In short this is a contribution from Mr. A. Dinesh Kumar, Oracle Financial Functional Consultant.

I wondered on his skills and efforts to capture word by word in the computer when one teaches him something new on Oracle Applications.

Procure to Pay – Localization Entries

Purchase Value 100

Excise 16+ Cess 2+ S.H. Cess 1                     19
VAT
4
Non-Recoverable Tax Like Freight
10

At the time of Purchae Order No Entry

Receipts of Inventory (Only Localization Entry)

Receiving Inventory Dr 29.00

VAT Interim Recovery Dr 4.00

To Inventory AP Accrual Cr 33.00

On Generation of AP Invoice

Inventory AP Accrual Dr 133

To AP Liability Cr 133

On Claiming Excise (Cenvat Adj)

RG23APart II (Cenvat RM) Dr 16.00

RG23APart II (Cess RM) Dr 2.00

RG23APart II (S.H. Cess RM) Dr 1.00

(Account code will be picked from

Organization Additional Information)

To Receiving Inventory Cr 19.00

On Claiming VAT

VAT Recovered Dr 4.00

To VAT Interim Recovery Cr 4.00

On Delivery (Non Recoverable)

Material Dr 10.00

To Receiving Inventory Cr 10.00

Order To Cash – Localization Entries

Cost 110.00

Sales Value 130.00

Excise 20.00

VAT 6.00

Sales

COGS Dr 110.00

To Material Cr 110.00

On Generation of AR Invoice

Receivable Dr 156.60

To Excise Paid/Payable Cr 20.00

To Cess  Paid/Payable Cr 0.40

To S.Cess  Paid/Payable Cr 0.20

To VAT Interim Liability Cr 6.00

To Revenue Cr 130.00

After Running India-Excise Invoice Generation (OM)

Excise Paid/Payable Dr 20.00

Cess  Paid/Payable Dr 0.40

S.Cess  Paid/Payable Dr 0.20

To RG23AP II (or) RG23AC II (Cenvat RM) / PLA Cr 20.60

(Credit is based on Register preferences set in org. addl. Info)

After Running India-VAT Invoice Generation/Accounting  (OM)

VAT Interim Liability Dr 6.00

To VAT Liability Cr 6.00

Procure to Pay – Localization Entries (Service Tax)

At the time of Purchae Order No Entry

Receipts of Services

Service Tax Interim Recovery Dr xxx

To Expense AP Accrual Cr xxx

On Generation of AP Invoice

Expense AP Accrual Dr xxx

To AP Liability Cr xxx

After Running India-Service Tax Processing

(Service Tax can be recovered only after Payment)

Service Tax Recovered Dr 80.00

To Service Tax Interim Recovery Cr 80.00

Order To Cash – Localization Entries (Service Tax)

Sales

COGS Dr xxx

To Material Cr xxx

On Generation of AR Invoice

Receivable Dr xxx

To Service Tax Interim Liability Cr 200

To Revenue Cr xxx

After Receipt & Running India-Service Tax Processing

Service Tax Interim Liability Dr 200 

To Service Tax Liability Cr 200

Service Tax Recovered (AP) Rs.80/-

Service Tax Liability     (AR) Rs.200/-

On Settlement (Smillar entry for VAT Settlement also)

Service Tax Liability Dr 80.00

To Service Tax Recovered Cr 80.00

Service Tax Liability Dr 120.00

To AP Liability Cr 120.00

(Balance payable to Authority)

Procure To Pay – Customs Localization Entries (Import – BOE)

Recoverable 60.00

Non-Recoverable 40.00

Total 100.00

At the time of Purchae Order No Entry

Receipts of Inventory

Receiving Inventory Dr 100

To  BOE Account Cr 100

On Delivery – Non Recoverable (Moving to FG / Stores )

Material Dr 40

To Receiving Inventory Cr 40

Claiming Excise (Cenvat Adj) – Recoverable Portion

RG23AP II (or) RG23CP II (Cenvat RM) Dr 60

To Receiving Inventory Cr 60