Pre-Release Document

Oracle Financials for India (OFI)

GST- RTV and RMA flow

Author: Hari Prasad Thipparthy, Vennalakanti Kumar

Creation Date: 20-June-2017
Last Updated: 29-June-2017
Document Ref:
Version: 1A

Organization: Oracle India Private Limited.

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Document Control

Change Record
1

Date Author Versi Change Reference

on
20June- Hari 1A Initial document
16 Thipparthy
and
Vennalakanti
Kumar

Reviewers

Name Position
Rajnish Kumar Director Tax Development
V S Baburaj Director, Product Strategy

Audience

Name Position
12.2.X Implementation team
12.2.X Customers

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Contents

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

1 - Introduction ............................................................................................. 4
2 - Scope ....................................................................................................... 4
3 – Flow Chart ................................................................... 5
4 - RTV process flow …………………….. ………………………….………………………
6
5 – RMA process flow ……………………………………………………………………………
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7. Summary ................................................................................................. 22
8. Call to Action ........................................................................................... 22

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 1.Introduction
RTV (Return to Vendor) is a process through which goods are returned to the supplier because of
defective materials received, too many items, items shipped in error, or items that you no longer require.

2.Scope
This document provides the details of the Functional Flow for ‘Oracle Financials for India’ (OFI) Return to
Vendor cycle from GST point of view.

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 1.Flow Chart of RMA/RTV process end to end

Recipient Seller

Receive Goods into the Inventory.

Sell the Goods to the Now feel like returning few
Recipient goods.

Accept the communication, Communicate to Supplier for return

then Create Credit Memo and of the goods
Send it to the Recipient

Receive the material Into Create an RTV and Return the Goods
the Inventory and create a for which a debit memo will be
RMA created

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 1. RTV Process flow

First we are having PO, Receipt and invoice in place for the purchases done by recipient from supplier

1.1 Create a purchase order for quantity 10 with the taxes attached and approve it.

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1.2 Creating the receipt against the goods received

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1.3 Create an AP invoice for the received quantity and validate
the same.

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 1.4 Now we would like to return goods to the vendor as there is some issue. Hence
communicated the same to supplier. Supplier accepts the request and sends the Credit note.
Now RTV the goods.

Oracle Inventory -> Transactions -> receiving -> returns

Make sure that Create Debit memo is checked on the line as shown below:

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Go to tools -> India Tax details form and give the supplier Tax invoice number and Invoice date with the
credit memo received from him. Also give the Tax details MANUALLY as per the received Credit memo
from the supplier.

Note: There will not be any accounting entries generated at RTV level and also there will not be any tax
invoice number generation at this stage.

1.5 Now check that the debit memo is created against this RTV in the invoice workbench

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1.6 Validate the Debit memo and there is a negative misc line as well.

1.7 Now Once the India Tax details is opened then you should enter the original Tax invoice
number and invoice date. Also there will be two more fields to capture the new Tax invoice
number and invoice date (Which comes based on the document sequencing defined).

1.8 Define the Document sequencing for the Debit memo

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NOTE: There is a Bug 26321149 - OFI GST EAP: RTV / RMA FLOW
CHANGES which is in process and these changes would be seen
once the same is resolved along with the accounting information.

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2. RMA Process flow
2.1 Prior to RMA process

a) Create a Sales Order

b) Sales order lines

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c) Apply GST taxes

d) Pick Release and ship confirm

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e) Check whether the document number has been generated or not based on the document
sequencing defined

f) Run Auto Invoice import program and check AR Invoice

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g) Check India Localization taxes

2.2 RMA Process begins

a) Create Credit memo

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b) Attach India Localization taxes and Once the transaction is completed Verify the Document
sequence Number

2.3 RMA Order

a) Create Sales Order of Type RMA the Workflow will be With No Credit

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b) Check India Localization taxes

c) Book the Order

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d) Receive the Material Into the Inventory

e) Populate the GST Invoice number that has been generated at the Credit memo into Supplier
Invoice number field and confirm the taxes

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 f) Check the Line status

NOTE: There is a Bug 26321149 - OFI GST EAP: RTV / RMA FLOW
CHANGES which is in process and these changes would be seen
once the same is resolved along with the accounting information.
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 3. Summary
The above document will provide the below benefits:

1) Flow chart of how the RMA and RTV work for GST solution.
2) Complete RTV process for returning goods to supplier.
3) Complete RMA process

4. Call to Action

Please do perform RTV transaction according to your business scenarios making this document as a
outline. .

This is not the final document and we will incorporate further changes in this document according to your
queries and Business scenarios.

You can also refer the document in GST Info Center (Document Tab) released as a part of Phase 1 and
Phase 2 deliverables:

E-Business Suite Release 12: India Goods and Service Tax (GST) Info Center (Doc ID 2176820.2

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