Self Service Procurement

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    Ashok
    Update 19C: India GST - A look at whats new in Fusion Self...
    Topic posted July 24, 2019 by AshokBlack Diamond: 60,000+ Points, last edited July 24, 2019, tagged How-To, Requisition Processing 
    112 Views, 2 Comments
    Title:
    Update 19C: India GST - A look at whats new in Fusion Self Service Procurement
    Summary:
    What is supported for India GST Localizations in Fusion Self Service Procurement
    Content:

    Customers / Support

    I have been meaning to get to this article for a while now. I wanted to make you all aware of enhancements related to GST configuration specific to India and some enhancements we have made to Fusion Self Service Procurement on the same. I have provided here the feature as laid out by Financials in their What's New documentation for 19C for reference. I will then talk about what Self Service Procurement has done.

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    DEFAULT FIRST-PARTY TAX REGISTRATION NUMBER FOR INDIA

    Use the Default First-Party Tax Registration Number for India feature to set a default value for the first-party tax registration number of the receiving or purchase trade organization on requisitions and purchase orders. You can now experience improved accuracy in tax calculation and efficient processing in claiming input tax credits for India GST, which are based on the first-party tax registration number.

    Here’s what you can do with the Default First-Party Tax Registration Number for India feature:

    • Use the first-party tax registration number as a transaction tax determinant in tax rules to calculate the applicable taxes and process the recoverable taxes.
    • Avoid manual intervention in deriving the first-party tax registration number of the receiving or purchase trade organization on requisitions and purchase orders.

    STEPS TO ENABLE

    Before applying the feature, ensure that Regional Localization for India checkbox is enabled in the Functional Setup Manager.

    To apply this feature, associate the legal reporting unit of the applicable first-party tax registration number to the receiving or purchase trade organization. To associate the legal reporting unit:

    1. Sign in with a role similar to that of an Application Implementation Consultant.
    2. In the Setup and Maintenance work area, go to the Manage Associated Business Entities task:

    Offering: Financials

    Functional area: Legal Structures

    Task: Manage Associated Business Entities 

    1. Select the applicable legal entity and legal reporting unit.
    2. Click Add.
    3. Select the applicable type.

    NOTE: The Type represents a receiving organization, which can be a Ship-to location, inventory organization, or business unit based on your organization structure and the applicable India GST place of supply rules.

    1. Select the applicable name.
    2. Enter the start date.
    3. Click Save and Close.

    image33.png

    Task: Manage Associated Business Entities

    TIPS AND CONSIDERATIONS

    1. To default the first-party tax registration number, ensure that the taxation country for transaction is India.
    2. By default, the First-Party Tax Registration Number field is not displayed on requisitions and purchase orders pages. You can use page customization to show this field.
    3. To avoid inaccurate tax calculation and input tax credit recovery, ensure that all receiving organizations on purchase order lines or schedules are associated to the legal reporting units with the same first-party tax registration number

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    What Self Service Procurement Supports for India GST:

    1. Logic to derive First Party Tax Registration Number (FP TRN)

    This is the defaulting logic that will be used to derive the FP TRN for GST Tax Reporting purposes:

    Level

    First-party Tax Registration Number based on

    Defaulting Logic

    1

    Ship- to Location

    Find the LRU (Legal Reporting Unit) associated to Ship-to location (Derived from Deliver-to location) on requisition line and default the FP TRN. If found, use this value, else navigate down.

    2

    Ship-to Organization (Inventory Org)

    Find the LRU associated to Ship-to Organization (Derive from Deliver-to Organization) on requisition line and default the FP TRN. If found, use this value, else navigate down.

    3

    Requisition Business Unit

    Find the LRU associated to Requisition Business Unit on Requisition header and default the FP TRN. If found, use this value, else navigate down.

    4

    Bill - to Business Unit

    Find the LRU associated to Bill- to Business Unit on Requisition header and default the FP TRN. If found, use this value, else navigate down. (Very Import: This is not applicable to Requisitions)

    5

    Main LRU

    Find the Main LRU associated to sold to Legal entity and default FP TRN.

    2. Downstream Flow of FP TRN Values:

    For non-SFO flows, the value passed from Requisitions will be used in downstream transactions, i.e. Purchasing. For SFO flows, it will be derived again in Purchasing. This is because Requisitions do not carry the concept of a Purchasing Trade Organization which is the cornerstone of a Supply Chain Financial Orchestration flows.

    3. Consistent derivation logic across requisition creation flows:

    The defaulting behavior is consistent across various requisition flows including the standard shopping flows in the UI, FBDI (Import), Web Services, REST Services and the Mobile App.

    Trust this information is helpful.

    Comment

     

    • Laura Meine

      I have a need to report on legal entities assigned to business units.  Would you be able to provide the database table name this would be stored in?

       

      Thanks!

      Laura

    • Ashok

      Hi Laura

      Sorry for the delay in responding. This is not something we deal with directly in Self Service Procurement. Providing you with any detail might still be found wanting. My recommendation would be for you to log a service request and have Support specifically post this ask against the concerned infrastructure team. I am not sure which team that is, unfortunately. I will try to find out and revert if I have any update. You could have Support try the Financials team.