Oracle India Localization Interview Questions & Answers – Part I

Oracle SCM Functional Interview Questions & Answers – India Localization – Part I

How do I view India localization Taxes included in a PO that I would like to approve from Notification summary screen?

Notifications are generated by Workflow engine and India Localization taxes do not appear in notification summary screen.

In order to view the Purchase Order with the Tax Amount run ‘India PO Printing report’ for the Order.

How do I use Supplier Merge effectively with localization?

a. Setup ‘Supplier Additional Information’ screen for the new Supplier before running Supplier merge report.

b. After completing the setup Run Supplier Merge

If you do not do the above, Supplier Merge Report ends with an Error.

Which Localization tables are updated in the course of Purchase transaction created with Localization Taxes?

Purchasing Data flow with India Localization:

1. When PO is created with taxes attached, records are populated into

“jai_po_line_locations” table for Shipment level details and “jai_po_taxes” table for tax related entries.

These tables will be updated on Insert, Update and Delete.

2. On creating the receipt from Receipt Localized screen following tables are populated

“jai_rcv_lines” table for line level details & “jai_rcv_line_taxes” table for tax related entries.

3. When the Receipt localized form is closed “For Passing Accounting Entries” concurrent request is submitted. This would

a. Generate Accounting Entries by populating into “gl_interface” table &

b. Populate “jai_rcv_journal_entries” table for Receipt Accounting entries.

If excise types of taxes are attached then “jai_cmn_rg_23ac_i_trxs” & “jai_cmn_rg_23ac_ii_trxs” tables will get populated depending upon the item classification.

4. On Delivery to a Bonded Sub inventory Non cenvatable Taxes would be added to the item cost. This will insert records into

a. “jai_rcv_journal_entries” table for delivery entries &

b. “mtl_material_transactions_temp” table for average cost update. The Tax amount will be populated into Value_Change field.

Inventory transfer worker triggered and pushes the record from “mtl_material_transactions_temp” to “mtl_material_transactions” table.

When Average cost update worker triggered for costing “mtl_transaction_accounts” & “mtl_cst_txn_cost_details” tables will be populated.

What do we do when Taxes have not defaulted on PO created against the Quotation?

While Converting the Quotation to Purchase Order using Copy Document, taxes will not flow until you run "Concurrent request for defaulting taxes in PO when linked with quotation".

How do taxes default on a Purchase Orders?

India Localization Tax Configuration follows 3-way defaulting methodology for Tax Defaulting. This feature automates defaulting of Taxes that would be applicable to the Transactions, Below are the actual setups required to default the taxes:

1. First two levels of tax defaulting are based on the Item Category list, where, for every Item in the list, a Tax Category is associated.

a. First level considers the Item Category list attached to the Supplier and Site.

b. In the absence of Item Category list for Supplier and Site combination, the Item Category for the null Site of the Supplier is considered.

2. If neither of the above returns any Tax Category, the same is fetched based on the Item Class assigned to the Item. Tax Category and Item Class relationship should be set in the Tax Category window.

In all the cases, after arriving at the Tax Category, the taxes defined thereof are defaulted. The user can make changes to the taxes that have been defaulted.

Where all levels of defaulting fail, the user would have an option to assign Taxes to the Shipment lines manually.

Can we change taxes on an Approved PO?

Taxes can be modified only before approving the Purchase Order. If you need to change the taxes on approval of the Purchase Order then, create a Purchase Order Revision by modifying the PO lines. Change Taxes on this modified PO.

What is the impact on taxes on changing quantity on a PO Release?

Whenever you change quantity on Releases (through the Base Application screen), you need to navigate to Releases (Localized) screen, open Tax Details by Clicking on the Taxes Button. Click the Apply button in Tax details screen to enable recalculation of taxes based on the revised Quantity.

How to avoid the Error: ‘Currency conversion rate not defined in the system’ when the PO was amended?

This error occurs when PO is created or updated.

This will happen only when Inventory Organization is not attached to the Ship To Location

Resolution:

Attach the Inventory Organization to Ship To Location:

Navigation:

India local Inventory Responsibility > Oracle Purchasing > Setup > Organization > Location

How is Per landed cost calculated for a quote that includes localization taxes?

Per landed cost = Unit Price + [Sum (non cenvatable taxes) / qty]

Per Landed Cost can be viewed through Quote Analysis (localized) screen by navigating through

India Local Purchasing RFQ and Quotations Quote Analysis (localized)

How do we make the Supplier available in the Supplier LOV on a Quotation?

Please set 'HOLD_FLAG' attribute of the supplier to 'N' in Supplier screen.

Navigation:

India local Inventory Responsibility > Oracle Purchasing > Supply base > Supplier.

Can we create multiple regimes for service tax? Can we have the same registration value for n number of organizations?

No, we cannot create multiple regimes for service tax. Yes, we can have same registration numbers for multiple inventory organizations.

Whether tax is created against inventory org or operating unit

Taxes are created against operating units. But against inventory organizations only we can enter        the form as transactions happen at inventory organization level.

What register report is used for finished goods?

RG-1 register is used for finished goods

Where the MODVAT Flag & the recoverable Flag are available? What will happen if both Flags are disabled and write their localized accounting entries?

MODVAT Flag available at PO level & recoverable Flag available at the receipts level. If both the Flags are disabled, claim cannot be made.

What are the basic registers we use for excise?

Basic Registers used for excise are:

RG23A Part I & II,

RG23C Part I & II,

RG-1

PLA

Can we see the register while creating the receipt?

Yes. Can be seen.

Navigation:

Tools > View Register

Can we see the localized accounting entry in PO receipt before importing?

No. Localized accounting entry cannot be seen in PO before importing.

It can be seen only after importing.

Reference: Collected from various web sources.