Last updated on MARCH 08, 2017
Applies to:Oracle Financials for India - Version 12.1.3 and later
Information in this document applies to any platform.
Qn1:We are working on R12.1.3 with India Localization.
According to Excise department norms in India, only manufacturers are allowed to charge Excise Duty. Dealers are not allowed to charge Excise Duty on their selling price.
Dealers can only pass on the Excise Duty charged by the manufacturer to the end user through Excise gate pass which we can claim back as set off.
In case of RM, the mills are billing to dealer’s & stockyards based on the prevailing prices & prevailing Excise Duty rates. But stockyards / dealers can’t charge the prevailing Excise Duty on their selling price. They are obliged to charge the Excise Duty value charged by the manufacturer & hence Excise Duty value will vary lot to lot basis during supplies.
Hence, system need to have flexibility to allow the variation in ED while GRN & Bill booking. Till date it’s being handled via “Ad-hoc” category available in oracle but if we need to block the “Ad-hoc” category then we need to have solution in the system to capture this tax variance.
How to handle this requirement ?
Qn2: Pl. clarify the following points:
1) There is a possibility of human error while manually entering taxes, if that happens, as per my understanding there is no way we can amend the taxes again.
2) If the vendor sends the invoice with a different tax rate than what we used in the PO/GRN, then we need to amend the PO. Particularly, in case of partial receipts, it is a major concern.
E.g. We raise a PO for 100 Qty. Vendor sends first lot of 20 Qty with let's say 8% tax.
Then, he sends next lot of another 20 Qty with 9% tax. In such cases, is it possible to only amend the tax part in the PO or GRN.
3) As a generic query, irrespective of adhoc or actual, when we match invoice to PO/GRN and the PO is closed, does the system map all its components to respective accounts like Item, Taxes and freight etc before closing the PO.
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