India Localization

India Localization in Oracle is known as Oracle Financials for India.

This is a compliance enabling product and meets requirements pertaining to calculation, accounting, reporting and defaulting of taxes. Below are the regimes this works on:-

• Service Tax
• Sales Tax/Value Added Tax
• Central Excise & Customs
• Tax Deducted @ Source
• Tax Collected @ Source

Note: The above indirect taxes vs Central Excise, CD, ST, VAT, shall get converted in the future GST.

At present taxes are determined based on a simple setup. The taxes will be defaulted based on the item category assigned at the Supplier/Customer site level. It can also be from the Supplier/Customer Null site or from 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. this shows the applicable tax category for each item. Depending on the items the supplier/customer deals the item category has to be assigned at the supplier/customer @ site level. Based on this taxes will be defaulted on the transaction. This is for item based transactions.

In case of Manual AP invoices where there is no item association at the transaction, a seperate setup has to be done. 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.

Taxes are defaulted or used in the below processes:-

• P2P
• O2C
• Projects
• Costing
• Billing
• FA Integration

ASM

Accounting Setup Manager (ASM)

This is a central hub for ledgers, legal entities, creating chart of accounts, calendars, currencies and sub-ledger accounting methods.
This setup is a shared service model for all modules.
Secondary Ledgers can also be maintained which can be primarily used for statutory reporting and alternate accounting processes.

Setup Screenshots Will be shared soon:-

OEBS-Financials-General Ledger

Oracle General Ledger (GL) is the 'Mother' of all modules. All the process finally comes to GL. Organization's Important Reports like Balance Sheet, Profit & Loss, and Trial Balance is generated from this module.

Basic Process of GL is as below:-

1. Enter Journals
2. Review & Correct Journals
3. Post Journals
4. Reverse Journals (If Required)
5. Consolidate/Translate/Revalue
6. Reports
7. Open & Close Periods

In R12, there is a concept as SLA (Subledger Accounting), this is a interface between GL and other modules.

Important Functionality of GL is Accounting Setup Manager:

ASM consists of Primary & Secondary Ledgers, Legal Entities and maintenance of accounting methods.

Primary Ledger is the book-keeping ledger which consists of 4C's:-

• Chart of Accounts (COA)
• Calendar
• Currency
• Sub-Ledger Accounting Method

Secondary Ledger is optional ledger which represents the primary ledger. It has or differs the 4C's. This can be mainly used for reporting purposes like for Statutory purposes.

OEBS-Financials-Receivables

Oracle Receivables is not just Customer Invoice or Customer Receipts. Its known as Order to Cash Process. Its also called as O2C Process.
This process is very important in every organization because this involves REVENUE !!!

Below is the O2C Cycle:-

1. Create & Book Sales Order
2. Pick Release & Confirm Order
3. Ship Confirm Order
4. Create or Generate Invoice
5. Create Receipts via Receipt Workbench
6. Accounting 
7. Transfer to General Ledger with Import & Post Options.

Note: Receipts via Auto lock-box functionality will be a separate POST.

OEBS-Financials-Payables

Oracle Payable's is not just Supplier Invoice or Supplier Payments. Its known as Procure to Pay Process. Its also called as P2P Process.
This process is very important in every organization because this involves procurement of goods or services and payment to vendors.

Below is the P2P Cycle:-

1. Create & Approve Requisition
2. Create & Approve Purchase Order (PO)
3. Receive Goods (Receipt)
4. Create or Generate Purchase/Supplier Invoice (PI)
5. Supplier/Vendor/Employee Payments via Payment Workbench.
6. Purchase Return (PR)
7. Accounting 
8. Transfer to General Ledger with Import & Post Options.

Note: Payments made via Payment Manager functionality will be a separate POST.