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12.1 & 12.2 Implementation team
12.1 & 12.2 Customers
1 – Introduction ........................................................................................................................................... 4
6 –BoE Writeoff......................................................................................................................................... 43
8 –BoE Accounting................................................................................................................................... 47
9 - Summary.............................................................................................................................................. 47
BOE is a legal document in a prescribed format that needs to be submitted to the Customs
Authority by the importer or his authorized agent. BOE contains information of the goods imported
to India, value and other relevant details which is required for assessment of Customs duty.
We do not provide the document in the prescribed format and also do not capture all the
information required for BOE format. Further, calculation of customs duty is rigid. This document
will help the users to understand the product capabilities in regards to BOE requirements.
For imports the relevant taxes applicable are IGST and Basic Customs Duty which will be
settled with Statute.
1.1 Scope
This document provides the details of Functional flow for ‘Oracle Financials for India’ (OFI) Bill
of Entry cycle from GST point of view along with accounting entries.
Note: The current content has been compiled in reference to the frozen scope of the Phase-2
deliverables (Ref: GST Phase -2 Deliverables.docx)
Regime
Tax types
Tax rates
Tax Categories
Item Classification
BOE Agent
(N) Oracle Financials for India Tax Configuration Define Specific Functionality
The Tax Point Basis should be 'Delivery ‘while defining the tax type otherwise tax type will not
show while doing the specific functionality setup for custom tax
(N) India Local Payables India Localization Setup Others BOE Agent
Capture PO Reference
BOE Line details
Confirm BOE
The BOE Header form used to capture the BOE details and the associated vendor information.
It consists of 4 tabs i.e. Import Details, Currency, Shipment and Others.
Import Details : In this tab, information related to BOE type, nature of transaction, Port type will
be captured. This tab will also show the details of the BOE amounts with respect to Total BOE
amount, Amount applied, written off and any amount remaining.
The DEPB credit value captured , it will be reduced from the total BOE amount at AP invoice
workbench in the form of negative distributions once the BOE invoice gets generated.
Operating Unit Required The Operating Unit where this import is going NA
to be accounted.
BOE Type Required Select from the LOV depending upon the Yes
nature of transaction
BOE Date Required System Date will be shown and User can Yes
change the same. This will be used as the
AP Invoice Accounting Date.
Supplier Site Required Select Supplier Site from LOV, This is used Yes
for ensuring PO Number, Releases and
ASBN are restricted based on Supplier
selected
Port code / Required Select the Port Type like Sea, Air and Land Yes
Type from the LOV.
Import Dept Sl Optional The user can enter the Serial Number Yes
No. allotted by the Import Dept.
Import Dept Sl Optional The user can enter the BOE date as Yes
Date specified in the Physical BOE Document.
BOE without Optional You can use this option to create an Item No
reference Flag Independent BOE. You can define a BOE for
a Dummy Item and this can be used to
match the customs liability on any Item.
Agent Code Required Enter the Agent Code who is dealing this No
particular Import Shipment
Currency:
User can either Setup the ‘Custom Notified Exchange Rate’ in system (based on what is provided
by Customs Authority) using the base feature of recording Exchange rates in system or enter the
value manually while carrying out BOE Entry.
Feature is provided to capture the Custom Notified Exchange Rate on the BOE that is being
matched to PO or release or ASBN so that the Assessable Value is determined using the Custom
Notified Exchange rate.
Tab - Currency
Shipment:
Tab – Shipment
Vessel's Name Optional The user can enter the Vessel's Name for Yes
Reference
Port of Shipment Optional The user can enter the Port of Shipment for No
Reference
Country of Origin Optional The user can enter the Country of Origin and No
and Code Code for Reference
Bill of Lading Optional The user can enter the Bill of Lading date Yes
Date
Gross Weight Optional The user can enter the Gross Weight for No
Reference
Others:
License Optional The user can enter the License Number for No
Number Reference
IGM Optional The user can enter the IGM Number for No
Number Reference
IGM Date Optional The user can enter the IGM Date for Reference No
MAWB Optional The user can enter the MAWB Number for No
Number Reference
MAWB Optional The user can enter the MAWB Date for No
Date Reference
HAWB Optional The user can enter the HAWB Number for No
Number Reference
HAWB Optional The user can enter the HAWB Date for No
Date Reference
Green Optional The user can choose 'Yes' or 'No' for reference No
Channel
Clearance
Rotation Optional The user can enter the Rotation Number allotted No
Number by the Import Dept
Rotation Optional The user can enter the Rotation date allotted by No
Date the Import Dept
User should have created source document they can refer the same in BOE. Following can be
source document:
Purchase Order
Release
Advanced Shipping Billing Notice (ASBN)
Note : Make sure the Currency Code is same between BOE Invoice and the Purchase order to be
able to select the PO details.
Tax Override at BOE level: There can be a requirement to override the source document taxes.
In that case user can navigate to Tax Category field and select tax category.
They can even apply individual taxes here by clicking on the tax tab. Screen shot showing
overriding the document taxes:
System will consider the BOE tax amount for the tax lines that have been added to the Specific
functionality UI for Bill of Entry.
User can update the BOE any number of times as long as the status is “Yet to be assessed”.
For instance if user wants to give the item description, in that case user need to query the BOE
and click on button “line details”
User can provide the value in “Description” and click “Save” button.
Please note this facility was not available in earlier releases. In earlier releases user cannot
modify the BOE this is because the moment user saves the BOE, it gets frozen and AP Invoice
gets generated in AP invoice workbench.
Once BOE details are reviewed or validated by the user, user can click the “Confirm” button.
Once clicked on “Confirm” button, the BOE will not be allowed for any changes/updates.
This action will result in generation of AP Invoice in the name of Customs Authority.
Following decision box will appear while confirming BOE:
Find below the screen shot showing status of the BOE as “Confirmed”:
Following concurrent requests will be triggered to import the BOE invoice to invoice workbench:
On clicking the “Distributions” button, user can observe the Distributions created by the system.
The distribution expense account is picked up from the suspense account defined at the tax type
definition level.
with
Confirm BOE
BOE Invoice without reference is used when there are no source document details available and
the BOE can be applied against multiple documents like Purchase orders, ASNs etc.
You can create BOE without reference with Item Independent flag enabled or by selecting the
inventory item details while creating BOE
Capture DEPB credit in the columns DEPB amount column if avialable.This DEPB credit will be
reduced from the total BOE amount at AP invoice workbench in the form of negative distributions
once the BOE invoice gets generated.
Users can create new receipt from Tools > BOE receipt creation as explained below
Enter PO Information
(N) Oracle Financials for India Transactions Enter Bill of Entry Tools BOE Receipt
Creation
Select the Purchase Order details for which the Receipt to be created.
Add if any new taxes applicable to the receipts like third party supplier taxes, freight, Insurance
applicable to the receipt
For more details on receipt tax processing please refer the document OFI-GST-Functional P2P
flow Phase1& 2.docx
Using this method, user can keep the single receipt number against the multiple BOE Invoices.
BOE Receipt Creation link would be enabled only if BOE amount is available to apply against the
receipt.
Once the Receipt Number is selected, User needs to navigate to PO Number filed to get the
respective PO number which is attached as the reference document of BOE
By default, Receipt quantity default as available quantity for BOE application. but user can modify
the receipt quantity as per their business requirement .
User need to Navigate to Tolls > India Taxes Details to validate and confirm the taxes against the
receipt.
Note: Per current GST specifications, the expected business requirement for Receipt changes /
Corrections is not yet frozen. Hence in view of this, such relevant requirements (e.g. corrections,
RTV etc...) shall be evaluated further post Phase-2 release.
The process explains about how to handle the Insurance, freight and other third party costs when
involved for imported goods.
Create the Purchase Order with the item details and the custom taxes applicable.
Create the Receipt from BOE Invoice > Tools > BOE receipt creation
Confirm taxes
This form will be used to check the list of receipt details applied against a BOE Invoice.
(N) Oracle Financials for India > Transactions > Bill of Entry > Tools > Receipts Applied
The option drill down will show the breakup of taxes applied/used against this receipt.
However there will be scenarios where the BOE may not be fully consumed and users need to
writeoff the remaining amount
Navigation: Oracle Financials for India > Transactions > Bill of Entry > Tools > BOE writeoff
User should provide the details of write off amount, date and the reason to perform writeoff
You will be allowed to perform write off only when BOE Status is Applied.
BOE Invoice will be allowed to cancel when the invoice status is as below:
i) ‘Not Yet Assessed’ : At this stage if the BOE is cancelled , No accounting entry is
generated because accounting entry is generated at the time of ‘Confirmation’ of BOE.
User should navigate to Tools >Cancel BOE from BOE form to cancel BOE Invoice .After
cancellation ,Invoice status will be change to “Cancelled”
ii) Confirmed : At this stage , Tools > Cancel BOE from BOE form would be disable
.However user can cancel the AP invoice that is generated by marking the BOE as
‘Confirmed’ prior to payment of such invoice .After the cancellation of AP Invoice, BOE
status will be change to “Cancelled’
If the AP Invoice is paid then user must void the payment if none of the receipt is applied
to BOE
If the Receipt is applied to BOE, BOE Invoice payment cannot be voided. Application will stop to
do the void payment of invoice and will pops up following message:
9 - Summary
The above document will provide the below benefits:
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 documents in GST Info Center (Documentation Tab) released as part of
Phase2 deliverables.
E-Business Suite Release 12: India Goods and Service Tax (GST) Info Center (Doc ID 2176820.2)