pebs fin india-localization bp80 1a

PEBS PENNAR LIMITED

BP.80 FUTURE PROCESS MODEL

INDIA LOCALIZATION

Author: Banne/Suresh C Mishra

Creation Date: March 14th, 2014

Last Updated: March 14th, 2014

Document Ref: FIN/IL/1A

Version: Draft 1A

Approvals:

Venkatesh Chekkilla

Stravis – Project Manager

Anil Rachamalla

Stravis –

Project Head

Document Control

Change Record1

Date Author Version Change Reference

March 14, 2014 Nagraj Banne Draft 1A No Previous Document

Suresh C Mishra

Reviewers

Name Position

Venkatesh C. Stravis – Project Manager

Anil Stravis – Project Head

Distribution

Copy No. Name Location

1 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 Details – FIN-J 03: CUSTOMS DUTY PROCESS...............................14

Visio Business Process Flow - FIN-J 04: SERVICE TAX PROCESS.................................15


Process Flow Details – FIN-J 04: SERVICE TAX PROCESS.....................................16

Visio Business Process Flow - FIN-J 05: TDS PROCESS..............................................17


Process Flow Details – FIN-J 05: TDS PROCESS..................................................18

Visio Business Process Flow - FIN-J 06: TCS PROCESS..............................................19


Process Flow Details – FIN-J 06: TCS PROCESS..................................................20

Visio Business Process Flow - FIN-J 07: CST PROCESS..............................................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.

OBM Process

Group Id

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 when 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

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 Identifier

Process Name Process Description Primary Application Module

Standard Fit (Yes/No) Gap Identified?

FIN-J-01.001 Create PO with Tax Category

At Purchase Order level we need to attach 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.

Purchasing Yes

FIN-J-01.002 Receive Good

( Make GRN)

Receive goods in India Localization, Receipt. Enter the Excise Invoice number and date. This will appear in Excise register. Save the Receipt on entering the goods received.

Purchasing Yes

FIN-J-01.003 Claim Cenvat and Excise Accounting

Enable Claim CENVAT on receipt and press populate defaults. On saving Excise Accounting will be created.

Purchasing Yes

FIN-J-01.004 Enter Invoice in AP and Match invoice to PO/Receipt

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

payables Yes

FIN-J-01.005 Create SO with Tax Category and ship order

Create Sales Order with tax category and complete the ship order.

Order Management

Yes

FIN-J-01.006 Review invoice interfaced from OM and Complete AR invoice.

In India Localization transaction query the with Excise invoice Number generated. View the AR invoice by opening the India Localization transaction review and complete the invoice.

Receivables Yes

Process Identifier



FIN-J-01.007 Perform RG Consolidation

In this form we can see the status of Excise 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.

Receivables Yes

FIN-J-01.008 View PLA Invoice and make payment

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

Payables Yes

FIN-J-01.009 Import India Taxes from GL interface.

Through GL interface we have to bring Localization Tax entries in GL.

General Ledger Yes

Oracle Business Process Flow - FIN-J 02: VAT PROCESS


Process Flow Details – FIN-J 02: VAT PROCESS

Process Identifier




At Purchase Order level we need to attach 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.

Purchasing Yes


( Make GRN)

Receive goods in India Localization, Receipt. Save the Receipt on entering the goods received.

Purchasing Yes

FIN-J-02.003 Claim Vat and Excise Accounting

Select Claim VAT, system will show VAT claim form. In populate default section enter 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.

Purchasing Yes


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

payables Yes



Order Management

Yes

Process Identifier




In India Localization transaction query the with VAT invoice Number generated. View the AR invoice by opening the India Localization transaction review and complete the invoice.

Receivables Yes

FIN-J-02.007 VAT settlement In this form we can see the status of VAT payable. On processing, VAT payable invoice will be generated in AP invoice workbench.

Receivables Yes

FIN-J-02.008 View VAT Invoice and make payment

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

Payables Yes



General Ledger Yes

Oracle Business Process Flow - FIN-J 03: CUSTOMS DUTY PROCESS


Process Flow Details – FIN-J 03: CUSTOMS DUTY PROCESS

Process Identifier




At Purchase Order level we need to attach 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.

Purchasing Yes

FIN-J-03.002 Create and pay Prepayment for Customs Duty

Customs duty advance payable can be made through prepayment invoice. On making prepayment invoice, validate, account and make payment.

Payables Yes

FIN-J-03.003 Create BOE Invoice in India localization Payables

In BOE invoice we can enter the details relating BOE such as Assessable Value, Customs duty, Excise duty Edu and SH cess etc. On salving BOE, system will generate 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.

Payables Yes

FIN-J-03.004 Query BOE invoice in AP invoice work bench and apply relevant prepayment invoice.

BOE invoice in AP invoice workbench need to be adjusted with prepayment made earlier. Only paid BOE invoice’s BOE Number will appear India Localization Receipt, ‘ Apply BOE Form’ .

Purchasing Yes


( Make GRN)

Receive goods in India Localization, Receipt. Enter the BOE Invoice number and date. This will appear in Excise register. Save the Receipt on entering the goods received.

Purchasing Yes

FIN-J-03.006 Claim BOE and India Localization Purchase – Receipts Apply BOE, we Purchasing Yes

Process Identifier



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

FIN-J-03.007 Query BOE invoice in India Localization Payables

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

Payables Yes



General Ledger Yes

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


Process Flow Details – FIN-J 04: SERVICE TAX PROCESS

Process Identifier




At Purchase Order level we need to attach 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.

Purchasing Yes


( Make GRN)

Receive services in India Localization, Receipt. Purchasing Yes


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

payables Yes

FIN-J-04.004 Pay Invoice Service Tax credit is available only on making payment. Hence we need to make payment for availing Service Tax credit.

payables Yes


Create Sales Order with Service tax category and complete the ship order.

Order Management

Yes

FIN-J-04.006 Review invoice interfaced from OM and Complete AT invoice.

In India Localization transaction query with Service Tax invoice.. View the AR invoice by opening the India Localization transaction, review and complete the invoice.

Receivables Yes

FIN-J-04.007 Apply receipt to Service Tax on Sales invoice will become liable for Receivables Yes

Process Identifier



invoice service Tax payment only on receipt of invoice amount from the customer. Apply the receipt amount to service tax invoice and complete accounting.

FIN-J-04.008 Service Tax Settlement

In this form we can see the status of Service 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.

Receivables Yes

FIN-J-04.009 View Service Invoice and make payment

Invoice created from Service Tax Settlement form can be quired in AP invoice workbench with Service Tax authority supplier name. Make the payment.

Payables Yes



General Ledger Yes

Oracle Business Process Flow - FIN-J 05: TDS PROCESS


Process Flow Details – FIN-J 05: TDS PROCESS

Process Identifier




At Purchase Order level we need to attach 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.

Purchasing Yes


( Make GRN)

Receive services in India Localization, Receipt. Purchasing Yes

FIN-J-05.003 Create invoice, Match invoice and Validate invoice

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

Payables Yes

FIN-J-05.004 Review TDS Debit Memo and Invoice.

On validation of Service Invoice, system generates TDS D. Note to supplier and 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.

Payables Yes

FIN-J-05.005 Pay TDS invoices created at month end

Necessary payment to TDS authority can be made from AP payment on due date as required.

Payables Yes

FIN-J-05.006 Process TDS Certificates

TDS Certificate can be processed on making TDS payment.

Payables Yes



General Ledger Yes

Oracle Business Process Flow - FIN-J 06: TCS PROCESS


Process Flow Details – FIN-J 06: TCS PROCESS

Process Identifier



FIN-J-06.001 Create SO with TCS Tax Category and ship order

Create Sales Order with TCS tax category and complete the ship order.

Order Management

Yes


In India Localization transaction query the with TCS invoice Number generated. View the AR invoice by opening the India Localization transaction review and complete the invoice.

Receivables Yes

FIN-J-06.003 TCS Tax Settlement

In this form we can see the status of TCS Tax 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.

Receivables Yes

FIN-J-06.004 View TCS Invoice and make payment

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

Payables Yes

FIN-J-06.005 Process TCS Certificates

TCS Certificate can be processed on making TCS payment.

Receivables Yes



General Ledger Yes

Oracle Business Process Flow - FIN-J 07: CST PROCESS


Process Flow Details – FIN-J 07: CST PROCESS

Process Identifier




At Purchase Order level, we need to attach 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.

Purchasing Yes


( Make GRN)

Receive goods in India Localization, Receipt. Save the Receipt on entering the goods received. On saving system generates accounting entries.

Purchasing Yes


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

payables Yes



Order Management

Yes


In India Localization transaction query the with CST invoice.. View the AR invoice by opening the India Localization transaction review and complete the invoice.

Receivables Yes

FIN-J-07.006 Create Invoice for making CST payment

As CST functionality is not directly available in the system , no settlement form is available in the system. We have to arrive the CST payment amount from Sales invoices created during the month (Sales invoice

payables Yes

Process Identifier



register) and make the payment to Sales Tax Authority.



General Ledger Yes

Supporting Requirements

Interfaces

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

Interface Description (Purpose and summary of the interface)

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 of the security requirements)

Roles and Responsibilities

Details of the roles and responsibilities within applications

Type Role Responsibility Functions

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 be changed 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 the reasons details of requirement)

Business Process Impact

Gap Analysis

CEMLI No Gap Identified and description Possible Solutions/Workarounds

Recommended Solution /Workaround

Type of Change

(CEMLI)

Priority

MH/SH/CH/WH

Complexity

(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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