GST TAX SETUP IN ORACLE APPS

GST TAX SETUP IN ORACLE APPS

Contents

Define Item classification        

Define Template for Item classification        

Assign template to items        

Verify if attribute from template are assigned to part        

Define Item classification

(N) Oracle Financials for India >> Item Definition >> Define Item Classification

This is a mandatory setup for all the part where tax based transactions are expected for the part.

Define Template for Item classification

 

Click on New to define template. If template already defined then click on Find.

NOTE: RECOVERABLE attribute box value plays important role in recoverability of Tax. But remember tax recoverability depends on attributes mentioned at three different levels (Item classification, Tax type definition and Claim term).

You may refer one of related article How to make India GST regime tax entry as recoverable in Oracle EBS?

   

Values for item classification are maintained in Asia look up code “JAI_ITEM_CLASS_CD”

This is seeded lookup comes with many pre-defined entries, if required, we can add ours or disabled some.

Oracle has confirmed that these values will not play any role in the process as such in GST, like in excise if the part is marked as OTIN then taxes for that part are not CENVATable, if a part is marked as CGIN then 50% CENVAT credit done in 1st year and rest 50% in 2nd year. Whereas in GST case this will not be considered in taking any system based decision.

        Saying that Oracle may change it and include it in upcoming versions of GST patch as even in case of GST there is different treatment for Capital in case of OSP and so on!

Assign Reporting code (this is optional), but is we need to have Rule based ‘Tax defaulting’ then we have to do this setup.

 

Assign template to items

Then click on New to assigned template

Put the Template name in below screen, select Master Org and move to Organization section.

Here select the organization for which you want to assign template.

In ‘Item Registration’ section you may query specific part of put starting of the part number and find it.

Then ‘Save’ the record to apply template to those parts.

 

Verify if attribute from template are assigned to part

Here it is, applied template is appearing as well along with the values.

Further if we want to change the value we can do it

You may directly define Item classification at item level as well without using template.