Oracle Financials for India(OFI) Enhanced

Bill of Entry Functionality

Author: Sumit Dhariwal
Creation Date: 01-Dec-2014
Last Updated: 01-May-2015
Document Ref:
Version: 1.0

Organization: Oracle India Private Limited

1.1 Document Control

Change Record

Date Author Version Change Reference

28-Apr-2015 Sumit 1A Initial document

Dhariwal(sumit.d
hariwal@oracle.c
om)
01-May-2015 Sumit 1B Review with Pavan

Dhariwal(sumit.d
hariwal@oracle.c
om)
Sumit 1C Review with Development team

Dhariwal(sumit.d
hariwal@oracle.c
om)

Reviewers

Name Position

Pavan Raparla Senior Principal Software Engineer

Jai Thakkar Manager, Product Support

Audience

Name Position

OFI Customers (12.2.3 and above)

Table of Contents
1. Introduction .................................................................................................................................................................... 4
2. Definitions ....................................................................................................................................................................... 5
3. Scope of Document ......................................................................................................................................................... 6
4. Setup ............................................................................................................................................................................... 7
5. Transaction Flow ........................................................................................................................................................... 11
6. Reports: ......................................................................................................................................................................... 31
7. Accounting Entries: ....................................................................................................................................................... 32
2. Introduction
BOE is a legal document in a prescribed format that needs to be submitted to the Customs Authority by
the importer or his authorized agent. BOE contains information of the goods imported to India, value and
other relevant details which is required for assessment of Customs duty.
We do not provide the document in the prescribed format and also do not capture all the information
required for BOE format. Further, calculation of customs duty is rigid. This document will help the users to
understands the product capabilities in regards to BOE requirements.
3. Definitions
BOE (BOE)
BOE is a legal document in a prescribed Performa to be submitted to the Customs Authority by the
importer or his authorized agent. BOE contains information of the goods imported to India, value and
other relevant details which is required for proper assessment of Customs duty.
Assessable value
Assessable value is the value at which imported goods are confirmed for determining the customs duty.
In the normal circumstances, assessable value for customs valuation would be derived based on the
landed cost incurred which includes the cost of the material, freight, insurance, handling charges, clearing
and forwarding charges etc.
At the time of customs valuation, customs authority could reject the assessable values declared by the
importer if there are reasons to believe that the assessable value derived based on landed cost was
undervalued by declaring a reduced value or if the price of the imported goods were influenced are not
the sole consideration for the transaction. In such circumstances, the customs authority could value the
consignment based on an assessable value by considering the landed cost of comparable goods.
Duty Entitlement Pass Book Scheme (DEPB)
DEPB is a post export incentive scheme. Under this scheme, the exporter is given a pre-determined
credit on the FOB value or value cap whichever is lower. This credit can be utilized against import of any
items (except the items which are otherwise restricted for imports). Under the DEPB Scheme (in terms of
Para 4.3.5 of the Exim Policy) even excise duty paid in cash on inputs used in the manufacture of export
product shall be eligible for brand rate of duty drawback as per rules framed by Department of Revenue.
4. Scope
The Scope of the document is to provide the users, the detailed understanding of the setup, transaction
flows and accounting of BOE functionality. The new functionality has following important features:

Utilization of DEBP Credit

Matching BOE to Source document i.e. PO/Receipt etc.
BOE Modification
Tax Overriding at BOE
Usage of Currency Conversion rates
Additional Information Tracking
5. Setup
To make use of BOE functionality the following configuration is required:

i. Define Tax Codes

ii. Define Regime Registration for Customs
iii. Item Classification

Defining Tax Codes:

Navigation: India Local Inventory > India Localization > Setups > Tax > Taxes

Following the Tax Types available in the List of values of Tax Code Definition Form:

Customs Duty
Customs Education Cess
Customs SHE Cess
Additional Custom Duty
Surcharge Duty Non Recoverable
Any Other Customs Tax Type 1
Any Other Customs Tax Type 2
Any Other Customs Tax Type 3
Any Other Customs Tax Type 4
Any Other Customs Tax Type 5

Customs Duty Additional

CVD Education Cess Recoverable
CVD SHE Cess
Additional CVD
 Define Regime Registrations for Customs:

Navigation: India Local Payable > India Localization > India TCS/VAT/Service Tax > Setup > Regime
Registration

Registrations:

- Need to define Registration number as Primary Registration Number

- IEC code represents Import Export Code. This is one of the attribute for regime registration.
 Seeded Tax Types:
- Define each tax type
- Define the following accounts for each tax type:
i. Paid/Payable Account
ii. Write off Account

While performing accounting, the accounts will be picked from the regime Registration form instead of
Organization Additional Information as compared to previous functionality. The BOE accounts at
organization additional Information will be grayed out.

Inventory Organization Assignment:

Others Tab:

In case DEPB Credit is available and one wants to utilize it, then, in Others tab, DEPB Account should
be specified. This account will be picked up in accounting of DEPB credit if provided during the
BOE creation.

Item Classification:

For Imports, certain item parameters (e.g. Tariff Headings and code etc) are required to be captured.
These item parameters were earlier a part of Excise Item classification set up. As a part of this
enhancement, now for customs regime, users are supposed to define custom item classification in Item
classification form. Following is the screen shot:
6. Transaction Flow
A new UI is introduced. This new UI is divided into 4 tabs i.e. Import Details, Currency, Shipment and
Others. Find below the snapshot of the new BOE UI:

Import Details Tab: In this tab, information related to BOE type, nature of transaction, Port type will be
captured. This tab will also show the details of the BOE amounts with respect to Total BOE amount,
Amount applied, written off and any amount remaining.

DEPB Credit Utilization: In this tab, DEPB amount field is provided where the user need to punch the
amount of DEPB credit they are going to utilize for this import.

This DEPB credit will be reduced from the total BOE amount at AP invoice workbench in the form
of negative distributions once the BOE invoice gets generated.

Tab - Import Details

Field Name Nature Description Query/Enabled

Operating Unit Required The Operating Unit where this import is going to be NA
accounted.

Inventory Required The user defined inventory organization need to be picked NA

Organization up from LOV where this import is going to be accounted.

Location Required Location for that inventory organization is to be picked from NA

LOV where this import is going to be accounted.

BOE Number Display Only System generated Number Yes

BOE Type Required Select from the LOV depending upon the nature of Yes
transaction
BOE Date Required System Date will be shown and User can change the same. Yes
This will be used as the AP Invoice Accounting Date.

Supplier Number Optional Select Supplier Number from LOV, This is used for ensuring Yes
PO Number, Releases and ASBN are restricted based on
Supplier selected

Supplier Name Display Only Supplier Name is displayed based Supplier Number No
selected

Supplier Site Optional Select Supplier Site from LOV, This is used for ensuring PO Yes
Number, Releases and ASBN are restricted based on
Supplier selected

Port code / Type Required Select the Port Type like Sea, Air and Land from the LOV. Yes

Import Dept Sl Optional The user can enter the Serial Number allotted by the Import Yes
No. Dept.

Import Dept Sl Optional The user can enter the BOE date as specified in the Yes
Date Physical BOE Document.

BOE Amounts Display This block will show Details of Original Amount computed NA
Tax wise along with Applied Amount, Written off amount
and Remaining Amount.

BOE without Optional You can use this option to create an Item Independent No
reference Flag BOE. You can define a BOE for a Dummy Item and this can
be used to match the customs liability on any Item.

Agent Code Optional Enter the Agent Code who is dealing this particular Import No
Shipment

Customs Required Select the respective Customs Authority Supplier from the Yes
Authority LOV.

Customs Required Select the respective Customs Authority Supplier Site from Yes
Authority Site the LOV.

Usage of Currency Conversion Rates:

Customs authority provides an Exchange Rate that needs to be used for currency conversion in
calculation of customs duty. This rate is not the normal daily buying or selling exchange rate but a
different rate that is provided by Customs Authority.
User can either Setup the Custom Notified Exchange Rate in system (based on what is provided by
Customs Authority) using the base feature of recording Exchange rates in system or enter the value
manually while carrying out BOE Entry.
Feature is provided to capture the Custom Notified Exchange Rate on the BOE that is being matched to
PO or release or ASBN so that the Assessable Value is determined using the Custom Notified Exchange
rate.
 Tab - Currency

Field Name Nature Description Query/Enabled

Code Required Currency code needs to be mentioned here to

convert the PO amount and the tax amounts to INR
for computation of assessable value.

Rate Date Required This is to determine the Currency Rate that needs No
to be used for Determining the Custom Notified
Exchange Rate

Rate Type Required This is to determine the Currency Rate that needs No
to be used for Determining the Custom Notified
Exchange Rate

Rate Display / This is to determine the Currency Rate that needs No

Required to be used for Determining the Custom Notified
Exchange Rate when the Currency Rate Type is
used as 'USER', else this field would be grayed
out. On query of entered record, this field will show
the actual Currency Rate used for the Transaction.
 Tab Shipment

Field Name Nature Description Query/Enabled

Vessel's Name Optional The user can enter the Vessel's Name for Yes
Reference

Port of Shipment Optional The user can enter the Port of Shipment for No
Reference

Country of Origin Optional The user can enter the Country of Origin and Code No
and Code for Reference

Country of Optional The user can enter the Country of Consignment No

Consignment and and Code for Reference
Code

Bill of Lading Required The user can enter the Bill of Lading date Yes
Date

Number of Required The user can enter the Number of Packages for No
Packages Reference

Gross Weight Required The user can enter the Gross Weight for Reference No
 Tab Others

Field Name Nature Description Query/Enabled

License Number Required The user can enter the License Number for No
Reference

IGM Number Optional The user can enter the IGM Number for Reference No

IGM Date Optional The user can enter the IGM Date for Reference No

MAWB Number Optional The user can enter the MAWB Number for No
Reference

MAWB Date Optional The user can enter the MAWB Date for Reference No

HAWB Number Optional The user can enter the HAWB Number for No
Reference

HAWB Date Optional The user can enter the HAWB Date for Reference No

Green Channel Optional The user can choose 'Yes' or 'No' for reference No
Clearance

Rotation Number Optional The user can enter the Rotation Number allotted by No
the Import Dept

Rotation Date Optional The user can enter the Rotation date allotted by the No
Import Dept
Purchase Order (Localized) with Customs Type of taxes:

Once user has created source document they can refer the same in BOE. Following can be source
document:

Purchase Order

Receipt

Advanced Shipping Billing Notice (ASBN)

Once user picks the source document type and number, the following form will get opened for selecting
the items:

Click on Save button to default the Source document item details and taxes.
Defaulting of taxes from source document to BOE:

User can observe that taxes are getting calculated using the currency conversion rate defined in the
currency tab.

Tax Override at BOE level: There can be a requirement to override the source document taxes. In that
case user can navigate to Tax Category field and select tax category.

User also has the option of defaulting on all the lines or lines with no tax category.

They can even apply individual taxes here by clicking on the tax tab. Screen shot showing overriding the
document taxes:
Post clicking on Yes button, the taxes will be replaced as per the new tax category selected. Screen
shot showing new taxes:

Modification to BOE:

User can update the BOE any number of times as long as the status is Yet to be Assessed.
Take the following example:

User wants to give the item description, in that case user need to query the BOE and click on button line
details

User can provide the value in Description and click Save button.

Please note this facility was not available in earlier releases. In earlier releases user cannot modify the
BOE this is because the moment user saves the BOE, it gets freezed and AP Invoice gets generated in
AP invoice workbench.

Find below screen shot showing item description update:

Generating AP Invoice for BOE:

Once BOE details are reviewed/validated by the user, user can click the Confirm button.

Once clicked on Confirm button, the BOE will not be allowed for any changes/updates.

This action will result in generation of AP Invoice in the name of Customs Authority.

Following decision box will appear while confirming BOE:

 Post click on OK button the status of the BOE changes from Not yet assessed to Confirmed.

Following concurrent requests will be triggered to import the BOE invoice to invoice workbench:

o Importing BOE Invoices - Localization (Payables Open Interface Import).

o Calling Payables Approval Localization (India - Auto Invoice Approval)

Find below the screen shot showing status of the BOE as Confirmed:

User can then query the BOE invoice from AP Invoice workbench taking the invoice number from previous
concurrent request output.

Find below the screen shot of BOE invoice in AP Invoice workbench:

On clicking the Distributions button, user can observe the Negative Distributions. These negative
distributions represent the DEPB credit utilized while raising BOE. The account will be picked up from
regime registration > Others Tab. Following is the screen shot:

User can then raise the payment for the BOE Invoice. Post the payment of the BOE invoice, the status of
the BOE will become Available for Receipt Application.

Find below the relevant screen shot:

BOE Application (Receipt Localized):

Post payment of BOE invoice the BOE will be available for application on Receipt.

Users need to create Receipt and once done they should navigate to Receipt (Localized) form for BOE
application. Following is the screen shot of Receipt (Localized) form:
In Receipt localized form, user can find 2 new check boxes as shown below:

a. Apply BOE at Receipt Header Level: This flag will help user to apply the BOE on header level instead of
line by line application. The user has option of applying one BOE to all lines of the receipt or for some
lines only if the BOE does not meet all the Receipt Items. The selection of BOE for receipt will have
certain validations like Receipt Items should be present in the BOE.

The BOE un-applied amounts must be greater than Receipt Amount at Item level. The user has to select
one BOE from list of BOE and click on Apply for header level application.

After selecting the flag user has to click on Apply BOE Button which in turn open the following form:

User can click on Save button to apply BOE on the receipt.

The Application status of the receipt line will be changed to Applied post successful application of BOE.
Following is the screen shot:
b. Third Party Import: When the Third Party Import Flag is selected, the Apply BOE button will be grayed
out.
Custom Taxes available on receipt will be taken as Paid Customs Duty for passing necessary accounting
entries and costing. The system will not show the validation message for this type of BOEs that BOE is
not applied to receipt. Following is the quick screen shots:
Application Summary: In case user wants to know the receipt to which the BOE is applied, a new facility is
provided in BOE Form. User can navigate to Tools > Receipt Applied. This action will open the following form
summarizing all the receipts and the amount applied. Following is the screen shot:

If user clicks on Drill Down button then Receipt (Localized) form will be opened showing that particular
receipt.

If the BOE is fully consumed, then the status of the BOE will become Closed automatically. Following is
the screen shot:
BOE Write Off:

However there can be cases where the BOE may have some left over amount. This amount can be
written off.

To write off the residual amount user should navigate to Tools > Write off in BOE Form where user needs
to enter the write off date as well as reason for write off.

Compared to earlier functionality, the most important point is the provision to write off individual tax
instead of write off full BOE. Here the write off accounting will be picked from the regime registration for
that tax type.

Write off of a BOE should not be allowed if the BOE is not applied. For this, there is a validation in the
Special Tools menu; the menu will be disabled, if the Applied amount is zero.
Following is the screen shot showing write off of Additional Customs Duty in write off form:
 Post saving the changes, the following event will be triggered:

a. The amount provided in Write off Amount will be removed from the available balance. Following is the
screen shot showing the sam

b. There will be corresponding accounting entry inserted into GL Interface for write off amount for that
particular tax type. User need to run Journal Import to import these entries.
BOE cancellation:

User can cancel the BOE provided it is in following status:

Yet to be assessed

Confirmed***

Following is the screen shot showing status of BOE post cancellation:

Control over Voiding BOE Payment if applied to Receipt:

A new control is introduced where, if there is Payment made to BOE which is applied to Receipt then
application will not allow user to void the payment. Application will throw the following error:
7. Reports:
b. India Localization BOE Details Report: This is a new report provided. This can be submitted from the
tools menu of the BOE Form or though the normal request submission.

In the new report there will be an option for the user to see the BOE Lines based on the BOE item lines
or Grouped by Customs Tariff Code.

If the user wants to submit the report as a normal request, then it can submit with BOE Number as a
parameter. In both the options, the taxes will be seen below the lines and at the end of the report it will
show the total tax type wise. Following is the sample output:

India BOE Write off Report: This is an existing report. It got modified to show the account code also. The
account shown in the BOE write off report should be retrieved from each BOE write off transaction.
Following is the sample report output:
8. Accounting Entries:

Event Account Debit Credit

BOE Invoice Custom Duty Paid Account BOE Amount
Accounting Customs Authority Account BOE Amount
Payment of BOE Customs Authority Account BOE Amount
Invoice Bank Account BOE Amount
Loading of Duty Inventory Receiving Account BOE Amount (Non
to Item Cost Recoverable)
Customs Duty Paid Account BOE Amount (Non
Recoverable)
Claiming CENVAT Recovery Account BOE Amount
Recoverable Duty (Recoverable)
Inventory Receiving Account BOE Amount
(Recoverable)
BOE Write off BOE Write off Account Write off Amount
Custom Duty Paid Account Write off Amount