Oracle Financials for India (OFI) - India Localization Overview:
OFI is a compliance enabling product and meets requirements related to defaulting, calculation, accounting and reporting of taxes levied under following regimes:
Sales tax / Value Added Tax,
Tax Deducted at Source,
Tax collected at source.
( The above mentioned indirect taxes viz. Central Excise, Customs Duty, Service Tax, Sales Tax shall get subsumed with the upcoming Goods & Services Tax(GST))
In the current architecture taxes are determined based on a simple setup. The taxes will be defaulted based on the item category assigned at the Customer / Supplier site level or from the Customer or Supplier Null Site or from the Tax Category which is assigned to a specific item class.
In this method of defaulting, the user has to define tax categories and define item category i.e which shows the applicable tax category for each item. Based on the items the customer / supplier deals the relevant item category has to be assigned at the customer / supplier at site level or null site level. Based on this setup the taxes will be defaulted on the transaction time. This setup is for item based transactions.
In case of Standalone(Manual) AP invoices where there is no item association at the transaction time, a separate setup has to be made i.e by way of defining a tax category and assigning the same at the Supplier Site level or Null site level in the Additional Information. This is applicable where the Supplier invoice is related to Services.
Also, following are the different product integration areas wherein the tax defaulting/computing has been taken care of:
Some of the Key Product Integration Areas in regards to OFI are as follows:
Procure to Pay:
a. i Procurement-> Requisitions
b. i Supplier -> Request for Quotations, Quotations
c. Purchase Orders
f. AP Invoice, Returns, Debit Memos etc.
Order to Cash:
a. Sales Order Processing
b. Order fulfillment
c. AR Transaction flow
For a basic understanding, please refer to the following MOS Note: