OFI GST Functional O2C Flow Phase1

Pre-Release Document
Oracle Financials for India (OFI)

Goods and Services Tax (GST)
Order to Cash
Author: Santhoshkumar Ananth

Creation Date: 21-Mar-2016
Last Updated: 05-Oct-2016
Document Ref:
Version: 1A
Organization: Oracle India Private Limited.
Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 1

Document Control
Change Record
Date Author Versio Change Reference

n
21-Mar-16 Santhoshkumar 1A Initial document

Ananth
30-Sep-16 Santhoshkumar 1.0 Phase-I frozen document
Ananth
Reviewers
Name Position
Rajnish Kumar Director, Financial Localizations

Development
V S Baburaj Director, Product Strategy
Audience
Name Position
12.2 Implementation team
12.2 Customers

Table of Contents
Document Control .................................................................................................................................. 2
1 – Introduction ........................................................................................................................................... 5
1.1 - Scope .............................................................................................................................................. 5
2 – Pre-Requisite Setups .......................................................................................................................... 6
3 – Sales Order Transaction..................................................................................................................... 9
3.1 - Flow Diagram ................................................................................................................................. 9
3.2 - Sales Order Transaction ............................................................................................................ 10
3.3 - Document Sequencing ............................................................................................................... 19
3.4 - Accounting Entries ...................................................................................................................... 23
4 – Order to Invoice Flow ........................................................................................................................ 24
4.1 - Flow Diagram ............................................................................................................................... 25
4.2 - AutoInvoice Import ...................................................................................................................... 26
4.3 – Accounting ................................................................................................................................... 30
4.4 - Receipt Application ..................................................................................................................... 32
5 – Accounting based on Tax Point Basis ............................................................................................ 34
5.1 - Ship Confirm ................................................................................................................................ 35
5.2 – AutoInvoice .................................................................................................................................. 36
6 – Standalone AR Transactions ........................................................................................................... 38
6.1 - Flow Diagram ............................................................................................................................... 38
6.2 - Standalone AR Invoice ............................................................................................................... 39
6.3 - Accounting Entries ...................................................................................................................... 45
7 – Bill Only Order .................................................................................................................................... 46
7.1 - Flow Diagram ............................................................................................................................... 47
7.2 - Bill Only Order ............................................................................................................................. 48
7.3 - Accounting .................................................................................................................................... 51
7.4 - Receipt Application ..................................................................................................................... 52
8 – Tax Recalculation .............................................................................................................................. 54
8.1 - Tax Recalculation ........................................................................................................................ 54
9 - Call to Action ....................................................................................................................................... 62

1 – Introduction
"Order to cash" (O2C or OTC) normally refers to the business process for receiving and processing
customer sales. It follows "Opportunity to Order" and covers business-to-business (B2B) and business-to-
consumer (B2C) sales
The Financials for India functionality lets you satisfy all your needs related to Tax calculation required for
a Sales order Transaction
1.1 - Scope
This document provides the Functional overview for ‘Oracle Financials for India’ (OFI) product on the
Order to Cash front. The document helps you with the setups required for transacting Order to Cash
Cycle with respect to GST.
Note: The current content has been compiled in reference to the frozen scope of the Phase-I
deliverables (Ref: GST Phase -1 Deliverables.docx)

2 – Pre-Requisite Setups
1. Tax Regime
2. Tax Type
3. Tax Rates
4. Tax Category Setup (Optional)
5. Tax Rule Setup (Optional)
6. Item Classification Setup
7. First Party Registration
8. Third Party Registration
9. Document Sequencing
10. Shipping Parameters
11. Global Parameters
Document Sequencing will be discussed in detail in the upcoming chapters
Steps 10 and 11 are specific to Financials for India Order Management for tax defaultation to AR and
document sequence generation

Shipping Parameters
(N)  OM responsibility  Oracle Order Management  Setup  Shipping  Shipping Parameters
Set check box 'Raise Business Events' to 'Yes'.
Raise Business Events

Checkbox Enabled
Global Parameters
(N)  OM responsibility  Oracle Order Management  Setup  Shipping  Global Parameters
Set check box 'Raise Business Events' to 'Yes'.

Raise Business Events
Checkbox Enabled

3 – Sales Order Transaction
A seller-generated document that authorizes sale of the specified item(s), issued after receipt of a
customer's purchase order. A sales order usually implies that there will be no additional labor or material
cost incurred for the sale, except where it is used to initiate a production process. The Sales order,
sometimes abbreviated as SO, is an order issued by a business to a customer. A sales order may be for
products and/or services
Please Note in that GST Solution the significant change is such that there is no specific form by name
Sales Order(Localized)
Users can create sales orders directly Navigating to the base form itself
3.1 - Flow Diagram

Create Sales Order
Header/Line Info
Navigate to Tools India Tax Details. Add taxes if

defaulting mechanism is not used
Pick Release the sales

Order
Ship Confirm the Sales

Order
India - Check Delivery OM/INV Interface fires if the business

events are set properly and generates Invoice number
based on Document Sequencing setup
Navigate to Tools India Tax

Details to check the taxes and
Invoice number

3.2 - Sales Order Transaction
(N)  Oracle Order Management  Orders,Returns  Sales orders
a) Create a Sales Order. Provide all the required Header and Line Information

b) Save the Sales Order and Navigate back to Sales Order header
Navigate to Tools  India Tax Details
Tools
India Tax
Details

Few Significant columns are explained as below
SL.No. Field Functional Description Query
1 Document Number Transaction Number (Can be Sales Order Yes

Number,AR Transaction Number etc)
2 Document Status Shows the Status of the Yes

Document(Entered,Booked,Closed etc)
3 Currency Code Currency Code used in the transaction Yes
4 Shipment Number Delivery Line Number No
5 Delivery Detail ID Line Number of the Item displayed against No

the delivery will be displayed
6 Tax Point Basis Will get defaulted from the tax type and users No
cannot modify the same.
India Tax Details UI Continued
Header Block where

users will be able to see
the tax details and other
information defaulted
based on setups

Users can add the tax
category to all lines,
specific lines or modify
the tax category that got
defaulted

India Tax Details UI Continued
User will be able to see

the Item, Tax Category,
Organization, Location,
Tax amount etc
Taxes,Tax Point
Basis,Currency,Tax
Amount, Customer details,
Invoice Number and date
details are captured in this
block

c) Book the Sales Order
Status: Booked
d) Pick Release the sales order
(N)  Oracle Order Management  Shipping  Transactions

Select “Launch Pick
Release”
e) Ship Confirm the Sales Order
(N)  Oracle Order Management  Shipping  Transactions  Provide Order Number  Click
on Find  Delivery  Ship Confirm

f) Based on the setup done in Shipping and Global Parameters,Concurrent “India - Check
Delivery OM/INV Interface” will be invoked
Concurrent “India - Check

Delivery OM/INV Interface”
Completed
g) Navigate to Tools  India Tax Details to check the taxes and Invoice number
NOTE : As the Sales Order is Ship Confirmed the taxes can’t be

modified.
The Prompt shows the same in above screen

Shipped
Checkbox
TPB:Delivery
 “Shipped” Checkbox is checked which shows the line is ship confirmed

 Tax Point Basis(TPB) is “Delivery” which gets defaulted based on the tax used and the option
provided while defining the tax type
Invoice number is blank

because the Document
Sequence setup is not
done

3.3 - Document Sequencing
To sequence the invoice number for different transaction types, it is required that to assign a prefix to a
sequence series. And as far as legal requirement, the sequence should be refreshed at the beginning of a
new fiscal year. So we should allow user to assign effective dates for a sequence series
(N)  Oracle Financials for India  Tax Configuration  Define Document Sequencing

Document Sequence
Sl.No Field Name Description Query
1 Sequence Name Sequence Name that needs to be used for Yes

the transactions. User Enterable value
2 Start Number You can specify the Start Number for a Yes
specific Sequence
3 Current Number This field will display the current document Yes
sequence that is used.
4 Prefix Any alpha-numeric code that would be Yes

prefixed to the Invoice number
5 Last Number You can specify an end number for the Yes
document sequences.
6 Start date You should pick the start date here. Yes
7 End Date You can give a end date to disable the Yes
sequencing.

Document Sequence Assignments
Sl.No Field Name Description Query/Enabled
1 Tax Regime Name Tax Regime Name that used has already Yes
defined in the Tax Regime. Pick the value
from the LOV
2 Registration Number Registration Number for the Tax regime Yes

picked
3 Organization Type You can pick the Organization Type here. Yes
LOV Contains
1.Operating Unit
2.Inventory Organization
4 Organization Name You can pick the organization here. LOV Yes
contains Organizations related to the
registration number and Organization Type
selected above
5 Location You can pick the location related to the Yes

organization selected above
6 Document Type You can pick the document type here. Yes
LOV contains:
1. AR Transactions
2. Corrections
3. Default
4. Inter Org transfer
5. Manual Entry
6.Receipts
7.Return to Vendor
8.Sales Order .
You can define different document

sequences for different types of documents
above. If you select default the document
sequence applies to all the documents.
7 Document Category You can pick the document category here Yes
The document category name depends upon
the document type selected above.
8 Item Classification Pick the Item Classification from the LOV Yes
9 Start Date Start Date gets defaulted from Document Yes

Sequence Header.
10 End Date You can give a end date to disable the Yes
sequencing for this particular combination
alone if required

Once the Document Sequence is defined the Invoice number will be generated as below for a fresh sales
order
Invoice number GST-

O2C1 got generated

3.4 - Accounting Entries
Event Tax Point Basis Account Debit Credit
Ship Confirm Delivery Suspense Tax Amount
Liability Tax Amount

4 – Order to Invoice Flow
Order to cash (OTC or O2C) is a set of business processes that involve receiving and fulfilling customer
requests for goods or services.
"Order to cash" (O2C or OTC) normally refers to the business process for receiving and processing
customer sales.
The term is most prominent in the design and improvement of Enterprise Resource Planning (ERP)
systems

4.1 - Flow Diagram
Create Sales Order
Header/Line Info
Navigate to Tools India Tax Details. Add taxes if

defaulting mechanism is not used
Pick Release the sales

Order
Ship Confirm the Sales

Order
India - Check Delivery OM/INV Interface fires if the business

events are set properly and generates Invoice number
based on Document Sequencing setup

Details to check the taxes and
Invoice number
Run Workflow background Engine

and AutoInvoice import program
AR transaction gets created.

Apply Receipt to the
Details to check the taxes
AR Transaction
defaulted from sales order and
Invoice number
In the previous chapter we have already covered until Sales Order. The remaining steps are explained
below

4.2 - AutoInvoice Import
AutoInvoice is a concurrent program that interfaces Sales Orders from Order Management to Invoices in
Accounts Receivable.
a) Run Workflow Background Engine

b) Run AutoInvoice Import Program
Sales
Order 46
AutoInvoice Import
Program Completed
Normal

Selected and
Successfully processed
one record
c) Find Transactions

AR Transaction 82 got
created and the reference
field has the SO Number
and Invoice number as well
d) Navigate to Tools  India Tax Details

e) NOTE : A Prompt “Taxes cannot be modified.AR Transaction is in complete” appears
f) Taxes from Sales order has got defaulted and the Invoice number is also defaulted
Invoice number that

got generated at
Sales Order has
been defaulted to
AR Transaction

4.3 – Accounting
a) Navigate to Tools  Create Accounting
b) Navigate to Tools View Accounting

Accounting Entries
AR Invoice Delivery Receivable Tax Amount

accounting
NOTE: As TPB for the tax type is Delivery, there will not be any accounting entries passed specifically by
Oracle Financials for India

4.4 - Receipt Application

Create Accounting and View the same from Tools  View Accounting
As TPB for the tax type is Delivery, there will not be any accounting entries passed specifically by Oracle
Financials for India

5 – Accounting based on Tax Point Basis
Users have the flexibility of selecting the Tax Point Basis while defining the Tax Types, based
on which the accounting will happen.
In the below illustration the same is explained
NOTE: Two taxes are added with different Tax Types to illustrate accounting based on TPB
Tax Types Tax Point Basis(TPB) Tax Rate Tax Amount
O2C_REC Delivery 16 408
GST_O2C_INVOICE Invoice 12 306
Tax Point Basis will get defaulted after ship confirm for TPB as “Delivery” and after AutoInvoice for TPB
as “Invoice”

5.1 - Ship Confirm
During Ship Confirm accounting and Invoice Number Generation will happen only for the Tax Type with
TPB as “Delivery”
Tax Type O2C_REC with Tax Type “Delivery” gets accounted
Invoice Number
GST-O2C5

Ship Confirm Delivery Suspense Tax Amount
5.2 – AutoInvoice
At the time of AutoInvoice
a) OFI Inserts Tax Distributions for below taxes with below accounts and generates Invoice Number
for Tax Type with TPB as “Invoice”
Event Tax Point Basis Tax Distributions

Credit Account
AutoInvoice Delivery Suspense Account
AutoInvoice Invoice Liability
NOTE: OFI just inserts the tax distributions with respective accounts but the accounting will be done for
above from Base “Create Accounting”

Invoice Number
GST-O2C6

6 – Standalone AR Transactions
Accounts receivable is a legally enforceable claim for payment held by a business for goods supplied
and/or services rendered that customers/clients have ordered but not paid for. These are generally in the
form of invoices raised by a business and delivered to the customer for payment within an agreed time
frame
Please Note in that GST Solution the significant change is such that there is no specific form by name
Transactions (Localized)
Users can create AR Transactions directly navigating to the base form itself
6.1 - Flow Diagram
Create the Header, Bill-To, Ship-to

etc and save the Header
information
Click on Line Items and fill the line

level details
Navigate back to Header. Tools 

India Tax details
Pick the Organization and location.

The same is required for adding
taxes/tax defaultation if any
Complete the invoice and Navigate

back to Header. Tools -> India Tax
details
On completion of invoice the Invoice

number gets generated from the
Document Sequencing setup
Create Accounting and View the same

6.2 - Standalone AR Invoice
(N)  Oracle Receivables  Transactions  Transactions
a) Create the Header, Bill-To, Ship-to etc and save the transaction
b) Click on Line Items and fill the line level details

c) Navigate back to Header. Tools  India Tax details
Pick the Organization and

location. The same is
required for adding
taxes/tax defaultation if any

d) Add the taxes manually
e) Complete the Invoice

f) Navigate to Tools  India Tax Details
NOTE : Tax cannot be

modified.AR transaction is
complete message comes
up which is intended
On completion of invoice
the Invoice number gets
generated from the
Document Sequencing
setup
g) Account and view the accounting
NOTE: From OFI perspective there will not be any accounting.

OFI’s scope ends once we populate the tax distributions

6.3 - Accounting Entries
AR Invoice Delivery Receivable Tax Amount

Complete
Liability (JAI Dist) Tax Amount
AR Invoice Invoice Receivable Tax Amount

Complete
Liability (JAI Dist) Tax Amount

7 – Bill Only Order
When creating sales orders, there are many instances where we need to create a BILL Only Sales Order.
There are situations when the company is creating an Order for invoicing but there will not be any
shipments for this order ,
Eg : If you buy a Warranty for a product in this case there is not physical shipment needed
If you have requested for a service of any product , in this case you are requesting the visit of a technician
to come and service , no physical shipments might be involved
In such scenarios when the order line is created it is in Entered Status
On booking the Order the line status changes to BOOKED Please make not that line does not go into
Awaiting Shipping status
Once workflow background process runs the Order line is Close

7.1 - Flow Diagram
Create the Header,Bill-To,Ship-to

etc and save the Header
information
Click on Line Items and fill the line

level details
Navigate back to Header. Tools ->

India Tax details
Taxes gets defaulted if default

mechanism is set/Add the taxes
manually
Book the sales order
Run Workflow background engine and

run AutoInvoice import
Taxes gets defaulted and based on

Document Sequence Invoice number
gets generated
Apply the Receipt to the same

7.2 - Bill Only Order
Create the Header,Bill-

To,Ship-to etc and save
the Header information
Click on Line
Items and fill
the line level
details

Navigate back to
Header. Tools ->
India Tax details
Taxes gets defaulted

if default mechanism
is set/Add the taxes
manually
Book the Sales

Order

After AutoInvoice
import is done
AR Invoice 122
gets generated
Taxes gets
defaulted and
Invoice number
GST-O2C13 gets
created

7.3 - Accounting
Apart from above entries which are created by Base, OFI creates below accounting as well as
TPB is “Delivery”

AutoInvoice Delivery Suspense Account Tax Amount
7.4 - Receipt Application

NOTE: From OFI perspective there will not be any accounting.

8 – Tax Recalculation
Taxes gets recalculated based on the TPB, provided if the tax rate is different on TPB
8.1 - Tax Recalculation
Case1
a) NOTE : Tax rate is 16% till 14-APR-2016 and the same is 20% starting from 15-APR-2016

TPB: Delivery
b) Create a Sales order on 14-APR-2016 and book the same
Sales Order Booking

Date : 14-Apr-2016
Tax : O2C_REC_16% Tax Amount : 408
Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1

Tax Amount : 408 55
c) Pick Release and Ship confirm the same on 15-Apr-2016.Query the same from fulfilled
orders.
d) Tools  India Tax Details. Find that tax amount gets recalculated during Shipping as the Tax
Point Basis used in the Tax Type is “Delivery”
Tax Amount : 510
Tax : O2C_REC_16%
Tax Amount : 408
Invoice Date
15-APR-2016
e) After running autoinvoice import the taxes on fulfilled orders gets carried forward to the AR
invoice as well
Tax Amount : 510

Case 2
Tax recalculation during AutoInvoice
a) NOTE : The tax rate is 14% on 05-MAY-2016 to 06-MAY-2016 for Tax rate code
GST_O2C_INVOICE_12 which has TPB as “INVOICE” and the same is 7% starting from 07-
MAY-2016

TPB: Invoice

b) Create a Sales Order on 05-May-2016 ,pick release and ship confirm the same
Sales Order Booking

Date : 05-May-2016
Tax : GST_O2C_INVOICE_12 Tax Amount : 357
Tax Amount : 408

th
c) Perform AutoInvoice on the 7 May and Find that tax amount gets recalculated during
AutoInvoice as the Tax Point Basis used in the Tax Type is “Invoice”
Tax Amount: 179(Tax gets recalculated as

Tax : GST_O2C_INVOICE_12
per TPB)
Tax Amount : 408

9 - Call to Action
This is not the final document and further changes shall be incorporated as and when there are any
further updates from Product Management / Development teams in regards to the changed
features/functionality or pending product clarifications, if any.
For further reference, you can also refer the below Pre-Release documents released as a part of the
EBS GST Infrastructure Scope:
 OFI-GST Configuration – Phase1

 OFI-GST-Functional Tax Computation for O2C – Phase1
 OFI-GST-Functional P2P flow – Phase1
 OFI-GST-Functional Tax Computation for P2P – Phase1

OFI GST Functional O2C Flow Phase1

Enviado por

Dados do documento

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

OFI GST Functional O2C Flow Phase1

Enviado por

Direitos autorais:

Formatos disponíveis

Pre-Release Document

Oracle Financials for India (OFI)

Author: Santhoshkumar Ananth

Organization: Oracle India Private Limited.

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 1

Date Author Versio Change Reference

21-Mar-16 Santhoshkumar 1A Initial document

Rajnish Kumar Director, Financial Localizations

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 2

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 3

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 5

4. Tax Category Setup (Optional)

5. Tax Rule Setup (Optional)

6. Item Classification Setup

7. First Party Registration

8. Third Party Registration

10. Shipping Parameters

11. Global Parameters

Document Sequencing will be discussed in detail in the upcoming chapters

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 6

(N)  OM responsibility  Oracle Order Management  Setup  Shipping  Shipping Parameters

Set check box 'Raise Business Events' to 'Yes'.

Raise Business Events

(N)  OM responsibility  Oracle Order Management  Setup  Shipping  Global Parameters

Set check box 'Raise Business Events' to 'Yes'.

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 7

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 8

3.1 - Flow Diagram

Navigate to Tools India Tax Details. Add taxes if

Pick Release the sales

Ship Confirm the Sales

India - Check Delivery OM/INV Interface fires if the business

Navigate to Tools India Tax

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 9

(N)  Oracle Order Management  Orders,Returns  Sales orders

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 10

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 11

SL.No. Field Functional Description Query

1 Document Number Transaction Number (Can be Sales Order Yes

2 Document Status Shows the Status of the Yes

3 Currency Code Currency Code used in the transaction Yes

4 Shipment Number Delivery Line Number No

5 Delivery Detail ID Line Number of the Item displayed against No

India Tax Details UI Continued

Header Block where

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 12

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 13

User will be able to see

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 14

d) Pick Release the sales order

(N)  Oracle Order Management  Shipping  Transactions

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 15

e) Ship Confirm the Sales Order

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 16

Concurrent “India - Check

NOTE : As the Sales Order is Ship Confirmed the taxes can’t be

The Prompt shows the same in above screen

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 17

 “Shipped” Checkbox is checked which shows the line is ship confirmed

Invoice number is blank

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 18

Santhoshkumar Ananth OFI-GST Order to Cash-Phase-1 19

Sl.No Field Name Description Query

1 Sequence Name Sequence Name that needs to be used for Yes