Академический Документы
Профессиональный Документы
Культура Документы
Table of Contents
Value Added Tax (VAT) ...............................................................................3
1. Background ................................................................................................ 3
Objective of VAT ..................................................................................................... 3
Where is it applicable? ............................................................................................ 3
VAT in India............................................................................................................ 4
2. Setting up VAT functionality of India Localization. ...................................... 5
Define VAT Regime.................................................................................................. 6
Define Registration Details ...................................................................................... 7
Assign Tax Types..................................................................................................... 8
Assign Tax Accounts................................................................................................ 8
Assign Organization/Locations ................................................................................ 9
Define Organization Registration Details................................................................ 10
Define Organization Tax Accounts ......................................................................... 11
Define Tax Codes................................................................................................... 12
Define Item Classification...................................................................................... 13
Define Item Attributes............................................................................................................... 14
Define Attributes Templates..................................................................................................... 15
Template Assignment ............................................................................................................... 16
Define Claim Terms ............................................................................................... 18
Define VAT Invoice Sequence................................................................................. 19
Define Supplier registrations ................................................................................. 20
Define VAT Authority ............................................................................................ 21
Define Customer registrations ............................................................................... 22
Define Journal Sources.......................................................................................... 23
3. Using VAT functionality in Oracle Application. .......................................... 24
Procure to Pay (P2P) Cycle ..................................................................................... 24
PO Localized with VAT Tax ...................................................................................................... 24
Receipt Localized with VAT Tax............................................................................................... 27
VAT In Payables ....................................................................................................................... 30
Claiming VAT ............................................................................................................................ 33
Order to Cash (O2C) Cycle ..................................................................................... 35
SO Localized with VAT Tax ...................................................................................................... 35
Shipping with VAT Tax ............................................................................................................. 38
VAT Invoice generation............................................................................................................. 40
VAT in Receivables ................................................................................................................... 42
Manual Transactions in Receivables with VAT Tax.................................................. 45
VAT Manual Entry ................................................................................................. 49
VAT Settlement..................................................................................................... 51
1. Process Records................................................................................................................ 51
2. Generation of AP Invoice .................................................................................................. 52
3. Pay Invoice of VAT Authority ........................................................................................... 54
4. Process Payment .............................................................................................................. 54
4. Standard Reports Related to VAT .............................................................. 56
India -VAT Returns Report ....................................................................................................... 56
Objective of VAT
The objective is to avoid 'cascading', which can have a snowballing effect on
prices. It is assumed that due to cross-checking in a multi-staged tax, tax evasion
will be checked, resulting in higher revenues to the government.
It is charged as a percentage of prices, which means that the actual tax burden is
visible at each stage in the production and distribution chain.
Where is it applicable?
It is a general tax that applies, in principle, to all commercial activities
involving the production and distribution of goods and the provision of services. It
is a consumption tax because it is borne ultimately by the final consumer.
VAT in India
The much awaited Value Added Tax (VAT) has been introduced in Indian
Taxation System from April 1, 2005.
Now India is a part of other 130 countries following VAT which was leaded
first time by UK in 1973.
It is said that 4 years is very short period in introducing VAT in the country
as compared to 10 years on an average by other countries.
VAT replaces the state sales tax in India.
VAT levy will be administered by the Value Added Tax Act and the rules
made there-under.
India opted for tax credit method, which is similar to CENVAT.
The following setups are required for VAT functionality of India Localization.
Assign Organization/Locations
Regime has to be assigned to all organizations to which it is applicable.
Taxes defined under this regime would default only for the transactions created for
these organizations.
As VAT is applicable on sale of goods, Inventory organizations and locations
are considered for VAT setup. User can assign Inventory organizations and
locations to the VAT Regime.
If the Registration details and the Tax Account details vary by organization,
the user would have a choice to change the default values.
On clicking the Organization button the Regime Organization Registration screen
will open. This screen shows the organizations that are assigned to the regime.
This will navigate you to the Find Item / Template / Assignment screen.
With this find window you can find:
1. Item Attributes for a single Item
2. Attribute Template for a single template
3. Template Assignments currently made
You can find an existing item for which these attributes are setup by
clicking the Find button. If you want to give attributes to a single item then you
can use the New button to navigate to Item / Template Attribute Registration
Form.
Template Assignment
You can create a new Template assignment for items not already assigned.
You can find template assignment for a combination of regime / organization /
template. Regime field is mandatory above. On defining a template, you should
press the Find button. You have to query find an existing template and assign
items to that.
On clicking the Find button the Template Assignment form will be opened
for existing items assignments.
VAT Invoice sequence generation depends upon the setup made for the
Value Added Tax Regime.
You have to setup whether you want to generate same invoice sequence for
VAT and Excise using the Same Invoice No for Excise and VAT Regimes attribute.
This is a mandatory setup that you need to perform irrespective of the value of
Same Invoice No for Excise and VAT Regimes attribute. For e.g. When a
shipment for Non-excisable but VATable item is made, and the value of Same
Invoice No for Excise and VAT Regimes attribute is set to YES, VAT invoice
generation program will pick up the document sequence from the VAT document
sequencing setup.
Enter the PO details and Save the Work Do not Approve the PO.
Close this window and come back to the Localized PO Screen.
Clicking on Taxes Button will pop up Tax Details (India Localized) Form
This is the last point where the Taxes can be amended for the Receipt.
Closing the Receipt Localized form will pop up a note, clicking on YES will
initiate the India Receiving Transaction Processor for the Accounting Entries.
VAT In Payables
You can create the AP Invoices Using any of the following functionality
PO Default
Quick Match
Pay on Receipt Auto Invoice
The reason is that the reference of PO and Tax codes attached to it/Receipt, is
required to populate the tax details on the AP Invoice.
Claiming VAT
VAT Taxes applicable to purchase transactions can be recovered to set-off
the VAT liability arising from the sale of goods arising in the course of intra-state
trade. This section provides details of the VAT recovery process. VAT Tax amounts
included in the purchase transaction can be recovered on receipt of VAT Invoice
from the Supplier. This document can be received either with the receipt of
material or at a later stage. If the document is received along with the material
then, the user has an option to enter the VAT Invoice details by opening the Claim
Details window through the Receipts India Localization window.
To open the Claim Details window while creating the receipt, click on the
Claim VAT button on the Receipt India Localization screen.
Saving the Transaction will initiate the India VAT Claim Processor to create
accounting entries for the VAT Claim. On Completion of this concurrent refresh
the Form and Check the Claim Status.
Values are populated in the Recovered Amount Field
Save the Work and Exit the Window without Booking the Sales Order to attach
Taxes on the Sales Order.
Run Interfaces
VAT Invoice Number can be seen through the Ship Confirm Localized Screen.
VAT in Receivables
Run Workflow Background Process (if not scheduled)
Run India Local Concurrent For Processing Order Lines to AR (if not scheduled)
The form is now populated with the Details of Transaction Lines, Select the
Line on which the tax is to be attached and Click on the Taxes Button.
1. Process Records
On giving the requisite details, press the Get Details button. Payment
Details Region will be enabled, only if the value in Debit is greater than in Credit.
On giving the requisite details, press the Process button. This will initiate
Localization Payables Open Interface Import (Payables Open Interface Import)
program, to create an AP invoice in favor of the VAT Tax authority.
On processing the records in the Settlement screen you can find out the AP
invoice number that has been generated using this screen. On finding out the AP
invoice number, you should navigate to AP and pay the invoice.
2. Generation of AP Invoice
4. Process Payment
Select the Line with Invoice Status Paid, Check the Process Payment Box and
Click on Process Payment
India_VAT_Returns_Report.htm