| # Other functionality Introduction In addition to the indirect taxes for each duty type, tax is calculated on Assessable value specific to each duty type and also on other applicable taxes. Example: Basic Excise Duty (BED) and Additional Excise Duty (AED) are calculated on the assessable value defined for Excise. The Basic Customs Duty and Additional Duty of Customs are calculated on the assessable value defined for Customs. Educational CESS on Excise and SHE CESS on Excise are calculated on the BED. Central Sales Tax (CST) is calculated on the cumulative of base price and all other taxes applicable to the transaction. Aggregate tax codes are used to represent the complex tax structure. The Aggregate tax code allows you to do the following: Define the origin of the amount on which tax must be calculated. Add singular tax codes to the layer. Select the layers on which the tax must be calculated. Define the maximum taxable amount on which tax must be calculated at the specified tax rate. The maximum number of layers that can be defined for an aggregate tax code is 10. To add more tax codes, use the sequence numbers defined for a layer. You can use the Tax Simulator to validate the aggregate tax code and to view the possible tax amounts. The tax breakdown structure can be used to view the actual tax amounts for an order line. Multiple Tax Registration numbers Multiple tax registration numbers are maintained for a business partner and the financial company. The Tax registration number is a unique number provided by the tax authorities. Assessable value & MRP Taxes of a particular duty type are calculated on the assessable value, specific to the duty type. The assessable value is defined in the system and is specific to the item, business partner, order origin and duty type. You can also define the period when the assessable value is effective. The Maximum Retail Price (MRP) is defined in the system and is specific to the item and State. You can also define the period for which the MRP is effective. When MRP is applicable to a transaction for a specific duty type, all the relevant taxes of that duty type are calculated on MRP. When MRP is not applicable to a transaction for a specific duty type, all the relevant taxes of that duty type are calculated on the assessable value. In case the assessable value is not defined, the taxes are calculated on the order line price. Tax Handling at State Level In India, taxes differ from state to state. The concept of handling taxes at state level is introduced and new fields such as State/Province are added to make the tax handling and declarations, easier. Defaulting of tax details Infor10 ERP Enterprise (LN) defaults the following excise details: Tax code and tax country Registration numbers by Financial company and BP Tax code and Tax country The tax country and tax code are defaulted as follows: From Sales Order to Sales Order Lines From Sales Quotations to Sales Quotation Lines From Sales Contracts to Sales Contract Lines From Purchase Orders to Purchase Order Lines From Warehouse Orders to Outbound order lines Registration Numbers by Financial Company and BP The registration numbers are defaulted as follows: The registration numbers by financial company related to VAT or CST is defaulted. For Purchase or incoming transactions, the registration number is defaulted based on the Purchase Office and Ship- from BP address on the purchase order line. For Sales or outgoing transactions, the registration number is defaulted based on the Sales Office and Ship-to BP address on the sales order line. The ECC code is defaulted when the warehouse is specified in the order line. Warehousing - Landed Costs enhancements Landed Costs (or Additional Charges) are charges paid for the services, obtained from the business partner other than the main business partner, in the process of procuring items. In Infor LN 10.3, the landed costs functionality is enhanced with the support of landed costs for Shipment Notices (ASN’s) and Shipment Notice Lines (ASN lines). For localization/regulatory practices, these costs are also taxed. Accordingly, a provision to define the aggregate tax code is made available for the landed cost line for ASN’s. Direct Delivery In case of a Direct Delivery, a purchase order is linked to the sales order. When a direct delivery transaction is completed for a lot controlled item, the Cost of Goods Sold (COGS) is updated by the value of the purchase order price. The value of the COGS includes the non- claimable taxes and other charges in the purchase order. Infor10 ERP Enterprise (LN) updates the COGS when the purchase receipt is confirmed and the sales order is processed. Invoice accrual for tax and other charges In Order Management, the tax related amounts and the additional charges incurred on a purchase order are not included at the time of purchase order receipt in Infor10 ERP Enterprise (LN) Standard. For India Localization, an option has been provided to add these amounts to invoice accrual in Financials. The expensed taxes are added to invoice accrual through integration transactions when you confirm the warehouse receipt. The claimable taxes are added to the invoice accrual after you process the tax details of the order. Form Tracking You can use the Form Tracking functionality to record the status of the applicable statutory forms. The forms can have the following status: Issue Receipt The receivable and issuable forms maintained at the purchase order lines, Sales order lines, Receipt lines, Shipment lines, Receivables Open entries and Sales Open entries can be tracked. The applicable statutory forms, such as Form C for Central Sales Tax – sales transactions and Central Sales Tax - purchases transactions, allow the sale or purchase of goods or services at a tax rate that is below the statutory rate prescribed by the authorities. This feature can also be used for Road Permit tracking. Under statutory obligation you must customize the reports in the Form Tracking functionality to generate reports with the required data. To substantiate the Sale / Purchase at a lower rate: You must collect the forms against the sales that are made at a lower tax rate. You must issue the forms against the purchases that are made at a lower tax rate Various financial instruments like Purchase Invoice Details, Sales Invoice Details, Credit Notes, Anticipatory Payments, Advance Payments, and Advance Receipts can store statutory form details. No reports are generated, based on the Form Tracking functionality. You must customize the Form Tracking functionality to generate reports with the required data. Retro Billing This functionality allows you to generate a supplementary sales invoice for the amount / transactions not billed in the original invoice. The retro-billed orders has all the tax- related data retrieved from the original sales order. One of the business scenarios can be that after you generate and send the sales invoice to a customer, you realize that you missed some amounts that must be billed to the customer. You must now generate a supplementary sales invoice with the following conditions: The movement of goods must not be allowed for the retro-billed invoices. The retro-billed invoices must have the same tax terms as the original invoice. In case the prices of the items specified in the order lines of the retro-billed order are modified, the following points need to be considered: New price for an item is specified on the order lines. The line amount is the difference between the new price and the old price of an item. Line amount = New item price - Old item price The amount for the retro-billed sales order is the summation of all the line amounts. Sales order Amount = Sum of line amounts The sales order amount is the taxable assessable value (ASV) which is used for tax calculation of the retro-billed order. Retro billing in Purchase This functionality allows you to perform retro billing on purchase. There may be change in price or any other reason for which you must charge additional amount on the closed purchase order. Additionally, using this functionality you can charge additional bills for the bills which are already paid, approved, and closed the purchase orders. Change Prices and Discounts for Domestic purchases and Imports This functionality allows you to record the changes in the details of the goods that are received in the warehouse to reflect the actual transaction. You can use the system to record the change in the details of the goods. The need to make a change in the details of the goods that are received in the warehouse can occur for both domestic purchase orders and import purchase orders with or without exempted duties. The change in the details must be recorded after you have received the goods in a warehouse, and before the generation of the invoice for the goods received. You might have to change the following details: Quantity of goods Value of goods Tax amounts Tax codes Discounts Tax Inclusive for domestic purchases This functionality takes into account the consolidated price of an item – inclusive of all tax amounts and performs the following postings for a domestic purchase transaction: The system posts the basic price and taxes that you cannot claim against the inventory value. The system updates the credit pool with the amount of claimable taxes. In some purchase transactions, you place an order with the supplier for a consolidated price, which includes all tax amounts. The vendor then supplies the material against the excise invoice (Goods Pass out Document), which contains the break-up of the amounts for basic price and tax amounts. This functionality performs the Tax & MAUC (Moving Average Unit Cost) calculations when the purchase order line price includes all the taxes. This functionality meets the business requirement of accounting the basic price and taxes that you cannot claim against the inventory value, and to update the credit pool with the Tax amounts that you can claim. The basic order line price (excluding taxes) is not updated in the purchase order lines. The Tax Breakdown Structure session displays the tax amounts that are calculated, based on tax inclusive price. This is only a display session. The actual amounts that are posted are different and are based on the excise invoice (Goods Pass out Document ).The Change Price and Discounts after Receipts and Receipt Correction functionality does not apply to purchase order lines that are tax inclusive. Receipt Correction This functionality allows you to update a receipt with the correct number of goods that are received in the warehouse. In a normal business scenario, there can be cases wherein the receipt which is generated after receiving the goods in the warehouse needs to be modified. This functionality records the changes made to the receipt, and updates the following data, based on the modified quantity of goods that are received in the warehouse: Tax Amounts Credit Pool Excise Registers Inventory Values Handling Cost Item This functionality allows you to define the following data for the cost items specified on sales orders and purchase orders: Define if the excise duty is applicable to the cost item Define if the item is a capital item Define if the excise register must be updated for the transactions against these items Define if the items are eligible for special functionalities such as eligible for CT3 purchase E-filing This functionality allows you to file the following statutory returns electronically: Excise Return (ER1) Service Tax Return (ST3) |