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: 15- Aug -2017
Document Ref:
Version: 1A

Organization: Oracle India Private Limited.

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Document Control

Change Record

Date Author Version Change Reference

20June-16 Hari Thipparthy and 1A Initial document

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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Table of Contents

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

1 – Introduction ............................................................................................. 4

2 – Scope ............................................................................................. 4

3 – Flow Chart ………………....................................................................... 5

4 – RTV process flow …..…………………….. ………………………………… 6

5 – RMA process flow …………………………………………………………… 12

6 – Summary ........................................................................................... 20

7 – Call to Action ...................................................................................... 20

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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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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 Define the Document sequencing for the AP Debit memo from the document sequencing
screen

Oracle Financials for India -> Define Document sequencing

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

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 Validate the Debit memo and you will be able to see the Document number generated for the AP debit memo.

Note: “Supplier Tax Invoice number” and “Supplier Tax Invoice date” will be given with the Credit memo tax
invoice number and date which has been shared by the supplier. “Original Tax Invoice Number” and “Original Tax
Invoice Date” will be the Actual Transaction Tax invoice number and date.

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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 the sales order

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 e) Ship confirm the Sales Order

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

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g) Run Auto Invoice import program and check AR Invoice

2.2 RMA Process begins

Make sure that document sequencing is defined for the AR credit memo

a) Create Credit memo

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b) Attach India Localization taxes and give the “Original Tax invoice number” and “Original Tax
Invoice Date” values. Once the transaction is completed Verify the Document sequence
Number should be generated for the Credit memo in the “Document Tax Invoice Number”
and “Document Tax Invoice Date” respectively.

2.3 RMA Order

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

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 b) Check India Localization taxes.

Based on the reference sales order number and line number given at the line level, taxes will be defaulted
accordingly from the referenced sales order line.

NOTE: You will be able to enter “Document Tax Invoice Number” and “Document Tax Invoice Date”. Right now
there is a bug going on for the same. Will be given in the coming RUP patch

c) Book the Order

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d) Receive material into the Inventory

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 e) India Tax details form of the receipt

NOTE: There will not be any accounting which will happen at Return Receipt. Accounting entries will be shared in
the next version release of the document.

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Expected Changes in the next version release of the document:

1) Accounting entries not yet added as there are some changes going on to handle cases where claim is not
done.
2) RTV tax defaulting (similar to that of RMA where taxes are getting defaulted from referenced Sales
Order).
3) Document tax invoice number is presently greyed out on the RMA order, this will be editable field in the
coming RUP patch

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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