Oracle India Localization Interview Questions

 Oracle India Localization Interview Questions - TDS 

Below are some interview questions with respect of TDS  functionality of Oracle India Localization:

Question Can India Tax code be defined with a back-dated effective date?

Answer No. While defining India Tax codes, the start date cannot be less than System Date.

Question What are the steps for generation of TDS certificates?

Answer The following three programs need to be run to generate TDS certificates:

-> India - Process TDS Payments

-> India - Generate TDS Certificates

-> India - TDS Certificate

Question If for a particular supplier there is no need to deduct TDS, what are the options available to ensure this?

Answer If no TDS needs to be deducted for a supplier, do not define 'Supplier Additional Information' for that supplier. This will ensure that no TDS tax codes are available for selection.

Question Is TDS deducted on Debit Memo or Credit Memo?

Answer No! TDS cannot be deducted on Debit Memo or Credit Memo. This entails recovery of TDS amount from TDS Authority; hence this functionality is not supported by India Localization.

Question What are the accounting entries when TDS is deducted?

Answer When TDS is applied on an Invoice, it creates creates two invoices (one Standard Invoice and one Credit Memo). The accounting entries are as follows:

Credit Memo (in the name of Initial Invoice's Supplier)

DR AP Liability

CR TDS Clearing Account

Standard Invoice (in the name of TDS Authority)

DR TDS Clearing Account

CR AP Liabiltity

Question A seperate check needs to be given to TDS authority for all deductions under various sections. How can this be achieved?

Answer While defining India Tax codes ensure that the Vendor Site is different for different TDS Section related Tax codes. Since, AP requires each supplier site to be paid by separate check, the above requirement can be met.

Question What do we mean by Threshholds under India Localization? Explain the concept of 'Single' and 'Cumulative' threshold.

Answer Refer India Localiation User Guide.

Question What is the naming convention of Invoices automatically created when when TDS tax codes are applied?

Answer The naming convention of TDS Invoices is

<Intial Invoice Number >- TDS - < SI or CM > - < a unique running sequence number > 

 For example, for the Standard Invoice with invoice number 'INV001' the TDS invoice numbers would be

 - TDS Authority's INV001-TDS-SI-1111 

- Supplier's INV001-TDS-CM-1111

(Assuming that TDS amount is payable to TDS Authority and the sequence's next value is 1111)

Question While creating AP Invoices TDS tax code can be applied either at Invoice Header or Distribution level. Is this statement correct?

Answer No! TDS Tax code can be only applied at the Invoice Distribution Level's DFF.

Question At what point of time are the TDS invoice's are automatically created? When invoice is entered / validated / approved / accounted / paid?

Answer TDS invoices are automatically created when a TDS Tax is entered in Invoice distribution and Invoice is validated.

Question While entering an invoice user forgot to enter TDS tax code at the invoice distributions. What option does the user has if he doesnt want to cancel the invoice but apply TDS tax?

Answer I leave this scenario so that you can check yourself :) 

India Localization Interview Questions - Excise and VAT 

1) How many excise registers are there in India localization? What are they? 

2) When the shipment of finished goods is done, does it affect PLA register or RG23 Part II register?

3) Excise Invoice number is not generated for a given shipment. Explain any 5 reasons which could lead to this scenario/issue.

5) In RG 23 Part II register, for every receipt there is a debit amount and equal credit amount i.e. the CENVAT credit is getting reversed. Have you faced such a scenario? If yes, what could be the possible reason for this?

6) Is Excise Invoice Generation Setup mandatory in India Localization? 

7) What are the difference between 'Excise Flag' and 'CENVAT Flag' while defining Items? 

8) What set-up determines whether an organization is Manufacturing or Trading organization?

9) Can we do PO receipt of an item with classification FGIN in Excise Organization? Can we do Misc. Receipt (RG Update)? If no, what is the alternative?

10) Explain three transactions in Oracle which effect RG1 register?

11) Have you faced a scenario where the Excise/VAT invoice is there in Shipment Localized form but not available in Transaction localized in AR? Is it possible to rectify this? Does this kind of issue happen even in case of Billy Only lines (where shipment is not required)? How about RMA transaction?

12) In trading organization, receipts can be matched to shipments. Which form/ report gives details of the receipts matched to shipments? Which India Localization table records this information?

13) From India localization perspective, what needs to be checked before 'Transferring accounting entries' to GL from AR? Is there any tax interface table to be checked?

14) What is meant by RG consolidation? Otherwise referred to as excise settlement?

15) Is it possible to carry-forward negative PLA balances while doing RG Consolidation? If no, is there a work-around? Is is possible to carry-forward positive PLA balances?

16) Can you explain the concept of 'Supplementary Invoices'? What are its uses?

17) Is India Localization VAT settlement process used in your current project? Are there any limitations in the current design? How was the requirement met?

18) What are the two stages where the VAT Credit can be claimed (in PO Receipts process)?

19) Are there any India Localization entries created when 'Ship Confirm' of a SO is done? If yes, there entries are created with the source 'Order Entry' in GL? Or with a different journal source?