Scope Document

GST Phase -2 Deliverables

Author: Ashish Gupta

Creation Date: 07-Febuary-2017
Last Updated: 02-March-2017
Document Ref:
Version: 1.2

Organization: Oracle India Private Limited.

The scope has been identified as per discussion with the below Team:

1. Ashish Gupta(Support)

2. Baburaj Sreekumar (Strategy)

3. Rajnish Kumar(Development Team)

Document Control

Change Record
1
4

Date Author Versi Change Reference

on
01-Mar-17 Ashish Gupta 1.2 Discussion with Dev team
19-Feb-17 Ashish Gupta 1.1 Discussion with Babu
07-Feb-17 Ashish Gupta 1.0 Initial Document

Reviewers

Name Position
Jai Thakkar Senior Manager, Customer Support
Baburaj Sreekumar Product Strategy Director
Rajnish Kumar Director, Tax Development

Audience

Name Position
12.1 & 12.2 Implementation team
12.1 & 12.2 Customers
Contents
Scope Document ........................................................................................................................................ 1

GST Phase -2 Deliverables ...................................................................................................................... 1

Document Control................................................................................................................................. 2

Objective ...................................................................................................................................................... 4

Scope ........................................................................................................................................................... 4

 Categories ..................................................................................................................................... 4

 Documents .................................................................................................................................... 5

GST P2P flows Phase-2 Deliverables ..................................................................................................... 6

GST O2C flows Phase-2 Deliverables .................................................................................................... 7

GST Internal Sales Order Phase-2 Deliverables.................................................................................... 8

GST Inter Org flow Phase-2 Deliverables .............................................................................................. 8

In this functionality we support within Operating Units. ................................................................ 8

Bill of Entry Functionality – Phase 2 Deliverables ................................................................................. 9

Outside processing functionality (OSP) for GST .................................................................................. 10

TDS Configuration – Phase 2 Deliverables .......................................................................................... 11

OFI Tax Interface – Phase 2 Deliverables ............................................................................................ 12

GST - Integration Strategy with other Modules .................................................................................. 14

Objective
The main objective of this document is to arrive at the scope of the phase-2 deliverables and the
deliverables being planned for release in regards to the OFI-GST Infrastructure being provided.

Scope
The Phase-2 Deliverables can be classified into following seven major categories with nine
documents to be delivered by Oracle Support:

 Categories :
 GST P2P Flows Extended functionalities – Phase 2 P2P

 GST O2C Flows Extended functionalities – Phase 2 O2C

 Internal Sales Order

 Inter Org

 Bill of Entry Functionality

 Outside Processing

 TDS configuration

 OFI Tax Interface

 Fixed Assets Integration

 Integration Strategy
 Documents:
 OFI GST Functional O2C Flow Phase1 & 2

 OFI GST Functional P2P Flow Phase1 & 2

 OFI GST Functional TDS Configuration Phase2

 OFI GST Functional BOE flow Phase2

 OFI GST Functional IRISO & Inter Org flow Phase2

 OFI GST Functional OSP Flow Phase2

 OFI GST Functional FA Integration Phase2

 OFI GAT Tax Interface Phase2

 OFI GST Integration Strategy Phase2

GST P2P flows Phase-2 Deliverables

 ERS Invoices

 Reverse Charge Functionality :

Wherever GST is calculated on
Advance, this is a provisional collection
and will be identified as a Self
Accessed Tax; this Tax will be
OFFSETTED at a later point of time
once the supply is properly taxed on the
supply event.
This is nothing to do with Supplier or
Customer.
This has to be calculated as a Self
Accessed Tax and later when the
actual supply takes place you have to
pay the complete amount.
Once the supply is accounted then the
tax will be paid twice and the Tax which
has been paid as an Advance can be
claimed as OFFSET.

 HSN/SAC Numbers: There are 2

reporting codes specifically named for
this and this is where the HSN and SAC
codes need to be entered. Then only
this will reflect on a Transaction. This
codes are for Reporting Purpose and is
not related to the Tax Determination.

 Recommended Item Mapping under

GST: There are 2 Tax Attributes for any
Item one will be identified as a Tax
Determination factor.
GST O2C flows Phase-2 Deliverables

 Advanced Receipts:
When payments are received in
advance for the supply of goods or
services that are subject to GST, tax
need to be accounted as a self
assessed tax on receipt of such
payments. GST calculated on
advances can be claimed as tax offset
upon supply of goods or services.
While accounting for the GST liability
on receipt of payment in advance,
customers are required to report the
HSN/SAC code of the goods/services
to be supplied for which the advance is
received.

 Document Sequencing :
Document Type supported are only AR
Debit Memo

 Supplementary Transactions:
Upward revision which will increase the
Liability.
Downward revision it will be an Offset
entry.

 Exports:
Calculation of GST at Zero rate is
supported in Phase 2 and Exports
under Rebate will be coming soon.
GST Internal Sales Order Phase-2 Deliverables

Goods & Service Tax Act Scope in IR-ISO & Inter Org transfers

Post GST there will be impact on existing IR-ISO and Inter Org transfers. In
the current regimes when ever material is moved out one must need to
issue a Document sequencing number and charge the tax liability. Like in
case of Excise & VAT at the time of shipment there is requirement to
update respective liability in case of transfers also.

However with the implementation of GST the same is simplified. Now

whenever there is transfer between 2 different registration numbers only
then the taxes are applicable.

As per the current GST rules each state will have one GST Registration
number. Hence whenever there is transfer across states the GST will be
applicable.

IR-ISO can be performed across operating units.

GST Inter Org flow Phase-2 Deliverables

In this functionality we support within Operating Units.

Intercompany accounting is planned for later phases and is not included as
a part of Phase 2 Deliverables.
Bill of Entry Functionality – Phase 2 Deliverables

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 support the below features as a part of Phase 2:

 Create BOE Invoice (With Reference)

 Create BOE Invoice (Without Reference)
 Apply BOE to new Receipt
 Apply BOE using Add-to-Receipt
 BOE with Third party Taxes
 BOEE Writeoff
 BOE Cancellation
 BOE Accounting
 Outside processing functionality (OSP) for GST

As a scope of Phase 2 for Outside Processing we are allowing to calculate

GST under the Value Addition provided by the Sub-Contractor.

The Tax Calculation as of now there is NO GST applicable when the

material is sent out for processing and if it is comeback within one year.
If it not coming back within One Year there will be some tax implication,
that we need clarifications from Government and is not supported in Phase
2 Deliverables.

If a Sub Contractor is not registered under GST law, the Value addition will
be calculated as Reverse Charge, User can use the Reverse Charge
process to Map such requirement.
 TDS Configuration – Phase 2 Deliverables

The TDS flows and features are compatible with the GST solution now and
users must reconfigure their GST setup using the new solution
Infrastructure.

 Define Tax Authority

 Define TDS Calendar
 Regime Registration
 Tax types
 Tax rates
 Tax Categories
 Common Configuration
 Third party Registration
 First party Registration
 Threshold Setup
 OFI Tax Interface – Phase 2 Deliverables

This is similar to the functionality available in current India

Localization structure but limited only for 12.2.X version

You can import the GST taxes from third party systems (Legacy)

This functionality will be supported for 12.1.1, 12.1.2, 12.1.3 and

12.2.X versions of Oracle Application.
 GST – FA Integration

OFI-FA GST functionality can be classified into following major categories

and its subcategories:

 Setup Flow

o Base FA Setup
o OFI FA Setup

 Transaction Flow
o Asset Addition
o Asset Retirement

 Relevant Concurrent Programs with functionality

o India - Income Tax Act Fixed Asset Schedules

o India - Depreciation Detail Report

 Procure To Pay (P2P) Cycle for Asset Items

 GST - Integration Strategy with other Modules

Any Transactions from modules which are not directly integrated with
Oracle Financials for India.

If those Transaction flows are importing to either Accounts Payable or

Account Receivables modules.

User will have an Option to Insert the Taxes at AP form and AR form.

This Integration Strategy will be supported here GST taxes are Applicable.