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D64809GC10
Edition 1.0
February 2010
D65490

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

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Disclaimer
This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy and
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Author
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Deepak Seth
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Technical Contributors and Reviewers hu
e Srinivas Gadde, Mallikarjuna Gupta
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Baburaj Vallikad Sreekumar, Narasimha
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Trademark Notice

Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective
owners.

Unauthorized reproduction or distribution prohibited Copyright 2013, Oracle and/or its affiliates

Table of Contents
Oracle Financials for India Solution Overview ..............................................................................................1-1
Oracle Financials for India Solution Release 12 Overview ............................................................................1-3
Objectives ......................................................................................................................................................1-4
Agenda ...........................................................................................................................................................1-5
Oracle Financials for India Solution................................................................................................................1-6
Oracle Financials for India Solution: Benefits .................................................................................................1-8
Agenda ...........................................................................................................................................................1-9
Oracle Financials for India Solution: Business Requirements ........................................................................1-10
Oracle Financials for India: Business Requirements ......................................................................................1-11
Oracle Financials for India Solution: Business Requirements ........................................................................1-21
Agenda ...........................................................................................................................................................1-22
Oracle Financials for India: Key Concepts ....................................................................................................1-23
Key Concepts: Tax Authority ..........................................................................................................................1-25
Key Concepts: Tax Regime ...........................................................................................................................1-26
Key Concepts: Tax Types ..............................................................................................................................1-27
Key Concepts: Tax Jurisdiction ......................................................................................................................1-28
Key Concepts: Third-Party Transactions ........................................................................................................1-29
Key Concepts: Threshold Maintenance .........................................................................................................1-30
Key Concepts: Tax Categories.......................................................................................................................1-31
Key Concepts: Tax Precedence .....................................................................................................................1-32
Oracle Financials for India: Configuration Components .................................................................................1-33
Agenda ...........................................................................................................................................................1-38
Oracle Financials for India: Tax Architecture .................................................................................................1-39
Agenda ...........................................................................................................................................................1-40
Receivable Transaction: Autoinvoice Generated Through Order Management .............................................1-41
Summary ........................................................................................................................................................1-45

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ra Tax Configuration ...............................................................................2-1
hufor India
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s
aFinancialsrafornIndia Solution Release 12 Tax Configuration ..............................................................2-3
m
Oracle
i
-t
HObjectives
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......................................................................................................................................................2-4
o
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Agenda ...........................................................................................................................................................2-5

Tax Users .......................................................................................................................................................2-6

Multi-Org Setup ..............................................................................................................................................2-8
Lookup Codes ................................................................................................................................................2-10
Overview of Tax Configuration .......................................................................................................................2-12
Agenda ...........................................................................................................................................................2-14
Excise Duty ....................................................................................................................................................2-15
Excise Duty Organization Additional Information ..........................................................................................2-17
Excise Duty Define Sub Inventory Location ...................................................................................................2-27
Excise Duty Define Excise Tax Regime ........................................................................................................2-29
Excise Duty Define Item Localization Information ..........................................................................................2-30
Excise Duty Define Tax Codes......................................................................................................................2-34
Excise Duty Define Tax Categories................................................................................................................2-37
Excise Duty Define Item Category .................................................................................................................2-39
Excise Duty Define Excise Authority ..............................................................................................................2-41
Excise Duty Define Party Additional Information ............................................................................................2-42
Excise Duty Define Bond Register .................................................................................................................2-47
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Excise Duty Create Regime to Rate Setup in Base Application .....................................................................2-50

Customs Duty Tax Regime Setup Steps ........................................................................................................2-53
Agenda ...........................................................................................................................................................2-57
Service Tax ....................................................................................................................................................2-58
Service Tax Define Additional Organization Information ................................................................................2-60
Service Tax Define Service Tax Regime ........................................................................................................2-61
Service Tax Define Tax Codes.......................................................................................................................2-65
Service Tax Define Tax Categories ................................................................................................................2-67
Service Tax Define Item Category List ...........................................................................................................2-69
Service Tax Define Service Tax Authority ......................................................................................................2-71
Service Tax Define Party Additional Information ............................................................................................2-72
Agenda ...........................................................................................................................................................2-74
Tax Deduction at Source ................................................................................................................................2-75
Tax Deducted at Source: Review Lookup Codes ...........................................................................................2-77
Tax Deducted at Source: Define TDS Regime ...............................................................................................2-79
Tax Deducted at Source: Define Income Tax Authority .................................................................................2-81
Tax Deducted at Source: Define Tax Codes ..................................................................................................2-82
Tax Deducted at Source: Define TDS Year Info.............................................................................................2-85
Tax Deducted at Source: Define TDS Threshold ...........................................................................................2-87
Tax Deducted at Source: Define Supplier Additional Information...................................................................2-90
Tax Deducted at Source: Define TDS Threshold-Exceptional Setup .............................................................2-92
Tax Deducted at Source: Enable Global Descriptive Flex Field .....................................................................2-94
Agenda ...........................................................................................................................................................2-95
Value Added Tax............................................................................................................................................2-96
Value Added Tax Define VAT Regime ...........................................................................................................2-98
Value Added Tax Define Item Classification ..................................................................................................2-102
Value Added Tax Define Claim Terms ...........................................................................................................2-106
Value Added Tax Define VAT Invoice Sequence ...........................................................................................2-108
Value Added Tax Define Party Additional Information ...................................................................................2-110
Value Added Tax Define VAT Authority .........................................................................................................2-111
Value Added Tax Define Tax Codes ..............................................................................................................2-112
Value Added Tax Define Tax Categories .......................................................................................................2-113
Value Added Tax Define Item Categories ......................................................................................................2-114
Sales Tax .......................................................................................................................................................2-115
Agenda ...........................................................................................................................................................2-118
Tax Collected at Source .................................................................................................................................2-119
Tax Collected at Source AR Receipt Class ....................................................................................................2-121
Tax Collected at Source Transaction Type ....................................................................................................2-122
Tax Collected at Source Transaction Source .................................................................................................2-124
Tax Collected at Source TCS Regime ...........................................................................................................2-127
Tax Collected at Source Item Classification ...................................................................................................2-130
Tax Collected at Source TCS Tax Authority ...................................................................................................2-133
Tax Collected at Source Define Tax Codes ...................................................................................................2-134
Tax Collected at Source Define Tax Categories ............................................................................................2-136
Tax Collected at Source Define Item Categories ...........................................................................................2-138
Tax Collected at Source Define TCS Threshold.............................................................................................2-140
Tax Collected at Source Define Customer Additional Information..................................................................2-142
Agenda ...........................................................................................................................................................2-145
Depreciation as Per Income Tax Act ..............................................................................................................2-146

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Unauthorized reproduction or distribution prohibited Copyright 2013, Oracle and/or its affiliates

Depreciation as Per Income Tax Act Lookup Codes for Blocks of Assets ....................................................2-148
Depreciation as Per Income Tax Act Depreciation Periods ...........................................................................2-150
Depreciation as Per Income Tax Act Opening WDV Balances .....................................................................2-152
Summary ........................................................................................................................................................2-154
Oracle Financials for India Solution Transaction Flow .................................................................................3-1
Oracle Financials for India Solution Release 12 Transaction Overflow .........................................................3-3
Objectives ......................................................................................................................................................3-4
Agenda ...........................................................................................................................................................3-5
Excise: Procure to Pay Cycle .........................................................................................................................3-6
Excise: Order to Cash Cycle ..........................................................................................................................3-12
Excise: Miscellaneous Features .....................................................................................................................3-17
Agenda ...........................................................................................................................................................3-23
Custom Duty ..................................................................................................................................................3-24
Agenda ...........................................................................................................................................................3-26
Process Flow Under Service Tax Regime ......................................................................................................3-27
Service Tax: Procure to Pay Cycle.................................................................................................................3-28
Service Tax: Distribution ................................................................................................................................3-33
Service Tax: Order to Cash Cycle ..................................................................................................................3-34
Service Tax: Settlement .................................................................................................................................3-37
Service Tax: Other Features ..........................................................................................................................3-39
Service Tax: Reports ......................................................................................................................................3-40
Agenda ...........................................................................................................................................................3-42
Process Flow Under Tax Deduction at Source Regime .................................................................................3-43
Processing Invoices .......................................................................................................................................3-44
Processing Payments ....................................................................................................................................3-47
TDS Certificate Generation ............................................................................................................................3-49
Generate ETDS Return ..................................................................................................................................3-50
TDS: Reports .................................................................................................................................................3-52
Agenda ...........................................................................................................................................................3-54
Process Flow Under Value Added Tax Regime .............................................................................................3-55
Value Added Tax: Procure to Pay Cycle ........................................................................................................3-56
Value Added Tax: Order to Cash Cycle .........................................................................................................3-62
Value Added Tax: Manual Entry.....................................................................................................................3-65
Value Added Tax: Settlement ........................................................................................................................3-67
Value Added Tax: 4% Vat Reversal ...............................................................................................................3-69
Agenda ...........................................................................................................................................................3-71
Tax Collected at Source: Transaction Cycle ..................................................................................................3-72
Tax Collected at Source: Settlement ..............................................................................................................3-75
Tax Collected at Source: Certificate ...............................................................................................................3-79
Tax Collected at Source: Returns ..................................................................................................................3-81
Agenda ...........................................................................................................................................................3-82
Depreciation Calculation ................................................................................................................................3-83
Oracle Financials for India: Other Features ...................................................................................................3-85
Summary ........................................................................................................................................................3-108

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Oracle Financials for India Solution New Features .......................................................................................4-1

Oracle Financials for India Solution Release 12............................................................................................4-3
Objectives ......................................................................................................................................................4-4
Agenda ...........................................................................................................................................................4-5
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R12.1 Oracle Financials for India Table of Contents

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New Features in Release 12 ..........................................................................................................................4-6

Descriptive Flex Field Replaced with UI Forms ..............................................................................................4-9
New Features in Release 12 ..........................................................................................................................4-19
Summary ........................................................................................................................................................4-25

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Preface
Profile

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Before You Begin This Course

Basic Knowledge of business accounting concepts

Basic Knowledge of Indian Tax Structure
Familiarity with data processing concepts and techniques

Prerequisites

R12 eBusiness Suite Essentials for Implementers

Basic Knowledge of R12 Procure to Pay and Order to Cash Cycle

How This Course Is Organized

This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations
and written practice sessions reinforce the concepts and skills introduced.

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R12.1 Oracle Financials for India Table of Contents

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Related Publications
Oracle Publications

Unauthorized reproduction or distribution prohibited Copyright 2013, Oracle and/or its affiliates

Title

Part Number

Oracle Financials for India Implementation Guide

E13657-02

Oracle Financials for India User Guide

E13658-02

Additional Publications

System release bulletins

Installation and users guides

Read-me files

International Oracle Users Group (IOUG) articles

Oracle Magazine
Typographic
Conventions

Typographic Conventions for Words within Regular Text

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Typographic Conventions

Unauthorized reproduction or distribution prohibited Copyright 2013, Oracle and/or its affiliates

The following two lists explain Oracle University typographical conventions for words that
appear within regular text or within code samples.

1. Typographic Conventions for words within regular text

Convention
Courier new,

Initial cap

Object or Term
User input;
commands;
column, table, and
schema names;
functions;
PL/SQL objects;
paths
Triggers;
user interface object
names, such as
button names
Titles of
courses and
manuals;
emphasized
words or phrases;
placeholders or
variables
Lesson or module
title referenced
within a course

Example
Use the SELECT command to view
information stored in the LAST_NAME
column of the EMPLOYEES table.
Enter 300.
Log in as scott
Assign a When-Validate-Item trigger to
the ORD block.

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2. Typographic
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m
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Convention
Example
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SELECT
employee_id
Uppercase
Commands,
Lowercase
italic
Initail cap

functions
Syntax variables

FROM employees
CREATE ROLE role

Forms triggers

Form module: ORD

Trigger level: S_ITEM.QUANTITY
item
Trigger name: When-Validate-Item
. . .
. . .
OG_ACTIVATE_LAYER
(OG_GET_LAYER ('prod_pie_layer'))
. . .
SELECT last_name
FROM
employees;
CREATE USER scott
IDENTIFIED BY tiger;

Lowercase

Column names,
table names
Filenames,
PL/SQL objects

Bold

Text that must be

entered by a user

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R12.1 Oracle Financials for India Table of Contents

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3. Typographic Conventions for Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.

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(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
This simplified path translates to the following:
1.

(N) From the Navigator window, select Invoice then Entry then Invoice Batches
Summary.

2.

(M) From the menu, select Query then Find.

3.

(B) Click the Approve button.

Notations:
(N) = Navigator
(M) = Menu

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(T) = Tab
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4. Typographic Conventions for Oracle
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imconvention
This course uses a navigation (path
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n Applications
pertinent information in the iOracle
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The following help G
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represents
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1. Innthe navigation frame of the help system window, expand the General Ledger entry.
2.

Under the General Ledger entry, expand Journals.

3.

Under Journals, select Enter Journals.

4.

Review the Enter Journals topic that appears in the document frame of the help system
window.

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