Match Receipt on Stock Transfers (ISO) of Purchased Material by quw86611

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									                                                                  IL-SIG
Match Receipt on
Stock Transfers (ISO)
of Purchased
Material
Mr. Subho Mukherjee, Tata Consultancy Services Limited, Kolkata

                              June 06 IL-SIG Conference                    1
About Presenter &
His Organization

•   Presenter: Subho Mukherjee, Assistant Consultant, Project Lead
•   Solution Architect: Sunit Chattopadhyay, Assistant Consultant
•   Members of the TCS team which is in the process of rolling out Oracle e-Business
    Suite ERP applications to the various regions of an Ink & Chemical manufacturing
    company - DIC India Ltd. also popularly known as Coates of India Ltd.
•   Organization: Tata Consultancy Services Limited (TCS) is the world-leading
    information technology consulting, services, and business process outsourcing
    organization..
•   Varied service offerings across a wide range of domains including Finance, Banking,
    Manufacturing, Insurance, Telecommunication, Retail,Pharmaceuticals & Utilities.
•   Clients include SMEs and large organizations and our consulting engagements vary
    from a few person months to many of person years in effort.
•   TCS has projects for over a 1000 clients across 55 countries with nearly 100,000
    person years of experience in diverse business domains and technology areas
•   Over 60000 consultants, a range of world class products, proven off-shore
    development capabilities, and multiple SEI CMM Level 5 centers..
•   Certified Implementation Partner and System Integration Partner of Oracle..
                                                                                      2

                                            IL-SIG
Business Case


•   Usually, due to logistical reasons, bulk purchases are made by organizations at
    one location and then they are distributed to various other factories / units at
    different locations. This necessitates transfer of cenvat credit to the
    transferee unit(s). The credit to be transferred should be equal to the exact
    amount of input credit. In other words, it has to be matched with the exact
    amount of receipt credit and the excise invoice cum challan should contain
    the receipt reference for satisfying the excise authorities that excess credit has
    not been passed on/reversed to/from a unit than what has been received. This is
    probably so because it impacts the revenues of the jurisdictional authority of the
    transferor and / or transferee unit if the credit reversal does not match with the
    receipt.
•   The above is insisted upon based on Cenvat Rule 3 sub-rule 4 which says:
      – The CENVAT credit may be utilized for payment of
      – (b) an amount equal to CENVAT credit taken on inputs if such inputs are
         removed as such or after being partially processed; or
      – (c) an amount equal to the CENVAT credit taken on capital goods if such
         capital goods are removed as such
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                                           IL-SIG
Flow Diagram- Business
Case


     Suppliers Excise          Applicable rule for removal of purchased material as such: Cenvat Rule 3 sub-rule
   Invoice cum Challan         4(b) & 4(c)
      Qty 10000 Kgs
  Excise Duty Rs.10000
  Excise Cess Rs. 200


                                                              Update                                        Update
                                                                                       Update
                                         Update            RG23A Part II                                RG23A Part II
                                                                                     RG23A Part I
                                      RG23A Part I            Balance                                 Excise Duty Rs.100
                                                                                       100 Kgs
                                    Balance 9900 Kgs    Excise Duty Rs.9900                           Excise Cess Rs. 2
          GRN                                          Excise Cess Rs. 198




                                                  STC Excise Invoice
                                                     Cum Challan
                         Remove material from         For 100 Kg              GRN           Receive Inventory in
  Receive Inventory in
                          Location A as such      Excise Duty Rs.100                            Location B
      Location A
                           Against GRN 11         Excise Cess Rs. 2
                                                    With receipt ref.




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                                                                IL-SIG
Oracle Functionality




• Users have to maintain an Assessable Value pricelist and attach it
  to customer additional information for calculation of taxes as per
  item tax category / manually for the shipment line of the Internal
  Sales Order.




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                                  IL-SIG
Gap




• The Oracle Applications mapping does not support
  receipt matching at the time of Internal Order shipment.
  The receipt reference is not available for each shipment
  line and the Assessable Value in AV price list may not
  match with a particular receipt causing excess/less
  credit reversal against a particular item/item tariff.



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                             IL-SIG
Flow Diagram – Oracle
Functionality & Gaps



    Procurement
                                                      Maintain AV Price List                                                     Oracle
                                                        for tax calculation
                            Qty                                                                                               Workaround
                            requisitioned         Import                  Raise
                            100 Kg               Internal                Internal
   Receipt No 11                                                                                                              Prerequisites
                                                   Order                Requisition
   Qty 10,000 kg                                                                                                                  Define
   Excise 10000                                                                                                                  Internal
     Cess 200                                                                                                                   Customer

                                                                                                                                Customer
                                                                                                                                Additional
                                 Release                            Excise        Receipt No 20
                                               Ship Confirm                                                                    Information
                                 Internal                        invoice cum       Qty 100 kg          Whse B
       Whse A
                                               Internal Order   challan without    Excise 120
                                  Order                                                                                         Attach AV
                                                                Rect reference       Cess 2
                                                                                                                                Price List

                 Update RG23A                 Update RG23A                                                   Update RG23A
 Update RG23A                    Update RG23A                                                 Update RG23A
                      Part II                     Part II                                                        Part II
     Part I                          Part I                                                       Part I
                  Excise 10000                 Excise -120                                                     Excise 120
 Qty 10,000 Kg                    Qty -100 Kg                                                   Qty 100 Kg
                 Excise Cess 200              Excise Cess -2                                                  Excise Cess 2

                                                      If receipt would have been matched
                                                     Credit reversed from Whse A would be
                     RG23A          RG23A Part II              Excise Duty Rs.100                              Oracle Functionality
                      Part I           balance                Excise Cess Rs. 2
                     balance         Excise 9880                    Instead of
                   Qty 9900 Kg     Excise Cess 198             Excise Duty Rs.120                              Gaps
                                                               Excise Cess Rs. 2
                                                      With the particular receipt reference
                                                                                                                                              7

                                                                         IL-SIG
Fitment : Customization


• Create a custom form for viewing Receipts with their components
  like Quantity, Taxes, Assessable value (On which taxes have
  been calculated). Using this view form one can find the
  assessable value and enter it manually in the assessable value
  price list which is defined for the internal customers (destination
  warehouse) before running Order Import concurrent program.
  After importing the internal requisition through order import
  standard API, user can open the internal sales order and match
  the existing receipt details with Internal sales order line DFF.
• On ship confirm from a manufacturing organization, the RG23A
  Part I register will get updated with the quantity shipped and
  RG23A Part II register will get updated with the excise amount &
  excise invoice number (standard functionality) and the excise
  invoice cum challan (custom report) will have the receipt
  reference.
                                                                    8

                                  IL-SIG
Flow Diagram – Oracle
Functionality & Gap
Fitment


    Procurement                  Custom Component Developed as a Bolt On – as desired by client                                       Oracle
                                                                                                                                   Workaround
                          Select the           Import       Change Price             View          Raise
                          receipt with        Internal         In AV                Receipt       Internal
   Receipt No 11                                                                                                                   Prerequisites
                       qty in Order Line        Order         Pricelist             Details      Requisition
   Qty 10,000 kg                                                                                                                       Define
   Excise 10000                                                                                                                       Internal
     Cess 200                          Automatic updation of Assessable Value is possible –
                                                                                                                                     Customer
                                        This customization may then be invasive in nature
                                                                                                                                     Customer
                                                                                                                                     Additional
                                 Release                              Excise        Receipt No 20
                                                Ship Confirm                                                                        Information
                                 Internal                          invoice cum       Qty 100 kg                Whse B
       Whse A
                                                Internal Order      challan with     Excise 120
                                  Order                                                                                              Attach AV
                                                                  Rect reference       Cess 2
                                                                                                                                     Price List

                 Update RG23A                 Update RG23A                                                        Update RG23A
 Update RG23A                    Update RG23A                                                    Update RG23A
                      Part II                     Part II                                                             Part II
     Part I                          Part I                                                          Part I
                  Excise 10000                 Excise -100                                                          Excise 100
 Qty 10,000 Kg                    Qty -100 Kg                                                      Qty 100 Kg
                 Excise Cess 200              Excise Cess -2                                                       Excise Cess 2

                                                             Receipt has been matched
                                                          Credit reversed from Whse A is
                     RG23A          RG23A Part II                Excise Duty Rs.100                                 Oracle Functionality
                      Part I           balance                  Excise Cess Rs. 2
                     balance         Excise 9900                      Instead of
                                                                 Excise Duty Rs.120
                   Qty 9900 Kg     Excise Cess 198                                                                  Fitment -customization
                                                                 Excise Cess Rs. 2
                                                         With the particular receipt reference
                                                                                                                                                   9

                                                                            IL-SIG
Screen Shots – From
Receipt Details


• Find Receipt Details (Custom Form)




                                         10

                                IL-SIG
Screen Shots


• Receipt Details (Custom Form-Scroll bar to the left)




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                                   IL-SIG
Screen Shots


• Receipt Details (Custom Form- Scroll bar to the right)




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                                   IL-SIG
Screen Shots


• Order Details of existing match (Custom Form)




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                                 IL-SIG
Screen Shots


• Enter the Assessable value in the Price List




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                                  IL-SIG
Screen Shots


• Run the “Order Import” Concurrent Program




                                              15

                                   IL-SIG
Screen Shots


• Open the ISO and match the order line with receipt from list of
  values (Here LOV is showing based on line status, Qty Availibility,
  Item No, Warehouse etc.)




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                                  IL-SIG
Screen Shots


• Select the receipt details with ISO line DFF




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                                   IL-SIG
Screen Shots


• Print the challan after ship confirm (Pre-Printed Stationery)




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                                    IL-SIG
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