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May 5, 2016

VAT Claim Processing in Oracle Applications 12.2.4

I am giving below a few setups and processes to Claim VAT in Oracle 12.2.4 India Localization. Key setup missing is configuring VAT Regime. I am assuming that the same is already configured.
  • Create a new item
  • Assign it to an Organization
  • In India Local Inventory, attach the item to VAT Regime. Navigation: VAT/Excise Item Classification >>(B) New
  • Select Operating Unit, Item / Template assignment as 'Item Attributes' and click (B) New
  • Select the regime name from List of Values
  • Select Organization from List of Values
  • Enter Item Name. Enter the attributes. 
    • Applicable   - Yes
    • Recoverable - Yes
    • Item Class    - Raw Materials
  • In case you have created a new sub-inventory attach the sub-inventory Location. Navigation: India Local Inventory >> India Localization >> Sub-inventory Location
  • In the Organization Field, query for your Organization
  • Location will default
  • In the Child Block, enter sub-inventory name. Save and Exit.
  • Create a PO with values as follows: Quantity: 100  Cost: 100, CST: 10%, Recoverable VAT Tax: 12% (Of course CST and VAT cannot be in the same PO, but this is only a test scenario to test some concepts. Instead of CST you can choose any non-recoverable tax. Remember VAT Tax has to be recoverable for the purpose of this test.)
  • The Ship To Organization should be same as the one to which the item is assigned and where you have configured Sub-inventory Location
  • Create a GRN in India Local Purchasing. 
  • Save and exit. If you have created the GRN from India Local Purchasing Receipts form, when you save and exit, the system will run the India Receiving Transaction Processor (IRTP). This process will create the India Local Accounting Entries for taxes in the GRN.
  • In our test case, IRTP will create the following accounting entries. These entries are created directly in 'GL_Interface' table. The source will be 'Purchasing India'. 
  • You have to run the 'Journal Import' process to transfer the journals to General Ledger. 
  • The Accounting Entry created is:
      • Receiving Inspection Account          Dr    1000 (for non-recoverable taxes)
      • VAT Interim Recovery                      Dr     1200
      • AP Accrual Account                         Cr      2200
  • Next step is to claim VAT
  • Navigate to India Local Purchasing: India Local Purchasing >> India Localization >> Receipts >> Receipts (Localized)
  • Query the receipt number. Click 'Find'
  • The Receipt opens. Click on 'Claim VAT'. In the 'Claim' Block in the middle, enter 'Procesing Action' as 'Claim',. enter Supplier Invoice Number, Invoice Date and click on 'Populate Defaults'. Vendor Name and Site Name will default
  • Click 'Save' icon. This will start the process 'India VAT Claim Processor'.
  • Once this process is completed, an accounting entry will be created in GL_Interface table with source 'VAT India'. Import the journal to GL
  • Following Accounting Entry is created:
      • VAT Recovery Account                    Dr      1200
      • VAT Interim Recovery Account       Cr       1200
  • Note: VAT Recovery and VAT Interim Recovery Accounts are configured when you define the VAT Regime in Oracle India Localization.


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ERP Software Dubai

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