Scope Document

GST Phase -1 Deliverables

Author: Ashish Gupta

Creation Date: 06-September-2016
Last Updated: 03-October-2016
Document Ref:
Version: 1.3

Organization: Oracle India Private Limited.

Document Control

Change Record
1
5

Date Author Versi Change Reference

on
03- Ashish Gupta 1.3 As per inputs provided by Baburaj.
October-
2016
13-Sep- Ashish Gupta 1.2 As per the inputs provided by
2016 Pavan Raparla.
12-Sep-16 Ashish Gupta 1.1 Modified as per discussion with
Support,Devlopment and Strategy
Team
06-Sep-16 Ashish Gupta 1.0 Initial Document

Reviewers

Name Position
Jai Thakkar Manager, Product Support
Baburaj Sreekumar Product Strategy Director
Pavan Raparla OFI Team Lead(Support)
Sumit Dhariwal Product SME(Support)
Rajnish/Vasavi OFI Development Team
Ashish Gupta GST Program Manager(Support)

Audience

Name Position
Internal Audience
GST early access participants
Contents
Scope Document ........................................................................................................................................ 1

Document Control......................................................................................................................................... 2

Objective ...................................................................................................................................................... 4

Scope ........................................................................................................................................................... 4

GST Infrastructure Setups Phase-1 Deliverables .................................................................................. 5

GST Tax Defaultation Phase -1 Deliverables ......................................................................................... 8

GST Tax Calculation Phase-1 Deliverables .......................................................................................... 10

GST P2P flows Phase-1 Deliverables ................................................................................................... 11

GST O2C flows Phase-1 Deliverables .................................................................................................. 13

GST Recovery Management Phase-1 Deliverables ............................................................................. 14

GST Tax inv doc sequencing Phase-1 Deliverables ............................................................................. 15

Objective
The main objective of this document is to define the scope of EBS GST infrastructure solution.

Scope
This document provides an overview of the solution capabilities which is available for phase 1 of
the early access initiative. The early access initiative is planned to enable our customers to get
an early insight to EBS solution infrastructure to enable compliance to Indian GST requirements

User documentation on setup required for mapping GST requirements, the tax defaulting
procedure, detailed documentation on Procure to pay and Order to cash flows are uploaded to
GST information center with an objective to enable our early access customers to learn the new
OFI solution architecture for GST through a self learning mode.

This document gives an overview on solution capabilities bundled as a part of GST

infrastructure solution, which is a sub set of the entire GST solution providing guidance on
features that could be tested by the participating customers.

Documents:
OFI-GST-Functional Setups Phase1
OFI-GST-Functional Tax Computation for O2C Phase1
OFI-GST-Functional Tax Computation for P2P Phase1
OFI-GST Regime to Rate Flow - Phase1
OFI-GST-Functional P2P flow Phase1
OFI-GST-Functional O2C flow Phase1
GST infrastructure: Scope of Early access initiative

1. Regime to Rate flow

Tax Authority Define the

GST Tax Authority as a
National agency.
Created via Supplier Setup.

Tax Regime Additional

Attributes we can capture via
Reporting Codes.

Tax types
Tax point basis Per
GST specifications, the
tax point basis (TPB)
should be Delivery.
Hence, it is highly
recommended to
configure and test the
GST flows with TPB =
Delivery (As GST is the
tax on supply of goods)
as part of the current
phase of testing. In the
later phases of testing,
user can test with other
TPB options viz. invoice,
accounting etc.
 Tax accounting-Sync
with the First Party
Registration.

Tax definition
Tax rates with date
effectiveness End
Date the Applicable Tax
rate and not the Tax
Definition.
Validation is based on
the Tax Transaction
Date.

Tax rates end date.

2. GST Jurisdiction 1st party registration All

Business Units located in one
state under the legal entity
need to have only one
Registration Number with
exception in maintaining
books of accounts under
AS17 can go for a different
Registration Number.

Registration attributes
Normal GST Registration
or Registration for Input
Service Distributor, we
can attach different
attribute values here.
 Registration jurisdiction
Different possible
variations in GST
Jurisdiction - Multiple
Inventory Organizations
or OUs sharing the same
registration number. An
ideal business scenario
though can be that
multiple Inventory
organizations sharing the
same REG NO.
Preferably the ideal
scenarios to be tested
would be in the
configuration 'Multiple
Inventory Organization
sharing the same GST
REG.NO.
Defining GL Accounts
for GST Accounting
hierarchy

3rd party registration

Important Attribute

Customer/supplier
registration Same as
Current
Supplier/Customer
Additional Information.

Third party registration

attributes.

Use of reporting codes

Additional Attributes
Create the reporting type
with reporting usage as
 reporting and user
configurable as yes.
Assign it to the entity (like
regime/item/tax rate/tax
type/first party/third party)
In which you want to give
the details of this
reporting type.

3. Item Classification

Item classification
procedure-
For Goods/Item: It should be
Tariff Classification.

For Service: It should be

Service account Code.

For Standalone Invoice: We

can use Third Party
Reporting Codes.

Use of reporting codes for

item classification.

Defining tariff Classification

GST Tax Defaultation Phase -1 Deliverables

Conventional Tax defaulting logic

Item category/Tax category

Defaulting procedure

Rule based defaulting

Setup/user configuration
Restrictions and applicability
GST Tax Calculation Phase-1 Deliverables

Tax calculation logic-

No Tax on Tax type of logic unlike in
current IL structure, system will allow
but as far as GST taxes concerned it
will be on taxable basis.

Definition of tax groups

Tax calculations

Assessable value
GST P2P flows Phase-1 Deliverables

Tax on Pre PO documents

I -Proc Functionality not
Included in Phase 1
Any Tax amount prior to TPB is not the
Exact amount.

Impact of taxable events (TPB)

Tax recalculation logic Based on

Defaultation.

Tax on receipts/procedure/process
change There will not be any IRTP
program.

Tax accounting on receipts.

Tax recovery accounting (Interim)

Input Tax Credit is being parked in
Interim Recovery Account and then in
Phase 2 we will be having an
automated Recovery Process.

Costing impact
 AP invoice
Tax on AP invoice based on
TPB.
ERS invoices.
Stand alone AP invoice.

Third party invoices.

GST O2C flows Phase-1 Deliverables

Sales order

Ship confirm

Tax accounting

Stand alone AR

Tax liability accounting - TPB

Bill only Order.

GST Recovery Management Phase-1 Deliverables

Interim recovery to recovery How the flow will work, this will be an
Interim Solution and we are checking the feasibility to automate the
entire process.

Unified UI

Unified tax repository

GST Tax inv doc sequencing Phase-1 Deliverables

Tax document sequencing

Order Management

Stand alone AR

Note: This is the Initial Document Sequencing related to basic P2P

and O2C flows mentioned above P2P and O2C scope.