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CIN CONFIGURATIONWhat is CIN? CIN Means Country India Version
In Indian Taxing procedure, Excise Duty plays a vital role in manufacturing scenarios. Excise related configuration is known as CIN configuration.
To understand the Indian statutory Requirements in the area of indirect taxation, Understanding statutory maintenance of Excise Registers, Sales Tax Set off we will go for Country India Version, the concept of Cenvat Input of Raw Materials and Out Put of Finished goods
There are Types of Taxes:
Indirect taxes: Central Excise, Customs, Sales / Vat tax & Service tax
Direct Taxes: Tax Deducted at Source
Country Version India comes with four pricing procedures as follows: - JINFAC (Sales from manufacturing plants) - JINEXP (Export sales) - JINDEP (Sales from depots) - JINSTK (Stock transfers)
Materials Management (MM):
Country Version India comes with functions for calculating, posting, remitting, and reporting excise duty, and for handling incoming and outgoing excise invoices.
For these purposes, extra fields are available in the vendor master data and material master data for information required in India only.
Country Version India offers two ways of calculating excise duty, a condition-based method and a formula-based method.
You can enter incoming excise invoices in the R/3 System for goods receipts arising from external procurement, subcontracting, and stock transfer. Excise clerks can capture incoming excise invoices using a dedicated transaction, or, alternatively, warehousemen can capture them in the standard Goods Movement transaction, MIGO, when they enter a goods receipt.
What is CENVAT (Central Value-added Tax) and how it is configured?
Explain what is cenvat; we have to understand the Indian tax Central Excise Duty (BED). It is called as basic excise duty. Every manufacturer is liable to pay the excise duty in various kinds namely Basic Excise Duty, Special Excise Duty, Additional Excise Duty etc.
For example, consider a product (finished goods) which is reached to a customer (end user), how many manufacturing activities are done. So to reduce the tax burden of the end user, the Govt. of India introduces the MODVAT scheme which is now called CENVAT scheme.
Based on this, if any manufacturer purchased a material, which is duty paid, and if it is used for his further manufacturing activity, he can avail this as credit in his book based on the Central Excise Invoice. At the time of selling his manufactured goods, he is liable to pay the excise duty. He can adjust the credit which he has taken into his book and pay the rest. For example:
CENVAT availed at the time purchased various goods Rs.20, 000 (Excise duty alone) CENVAT payable for his product at the time sales Rs.25, 000 He will pay only Rs.5000 through cash deposit in PLA.
What is Excise Duty?
Excise duty is a tax on manufacture or production of goods.
Is it collected by the State Government or the Central Government?
Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called "State Excise" duty. The Excise duty on rest of goods is called "Central Excise" duty and is collected in terms of Section 3 of the Central Excise Act, 1944.
How is it different from Sales Tax?
Sales Tax is different from the Excise duty as former is a tax on the act of sale while the latter is a tax on the act of manufacture or production of goods.
Excise invoice: A business document, in India, that you prepare when you issue excisable goods from a manufacturing plant, for example: To be sold to a customer, to be transferred to another of your plants
The excise invoice lists the goods that you have issued and states how much excise duty applies. Your customer uses the excise invoice to claim back the excise that it has paid from the excise authorities.
We can capture and post excise invoices in one or two steps, depending on our business requirements.
In the one-step procedure, the excise clerk captures and posts the incoming excise invoice simultaneously. The system creates the Part II entry automatically.
In the two-step procedure, the excise clerk captures the incoming excise invoice. This means that the clerk enters the data, but the system does not yet create an entry in Part II of the appropriate excise register. Another user (the excise supervisor) checks the excise invoice and posts it. The system then creates a Part II entry.
The excise invoice consists of header data and line items. The header data comprises:
An internal number, the excise invoice number, the date of the excise invoice
The details of the original vendor who generated the excise invoice, if your vendor purchased the goods from another vendor and was merely selling them on to you
At line item level, the excise invoice lists the materials on the excise invoice, showing the following information:
Chapter ID, Quantity of materials, Excise duty base amount, Rates of excise duty, Amount of duty paid
Chapter ID:
The number given to a material in the schedules of materials published by the government of India, the schedule lists all materials involved in manufacturing, input materials and output materials alike. It shows how much excise duty is levied on each material.
Each material in the schedule is assigned its own identification code, called "chapter ID."
1. Maintain Excise Registrations?
Spro IMG Logistics General Tax on goods movement India Basic Settings Maintain Excise Registrations.
Excise Registration
Enter a four-character code of your choice. This ID identifies the excise registration throughout the system.
An entity in India that is entitled by law to produce any goods liable to excise. Each entity is assigned its own excise registration number. Every factory that manufactures excisable goods is required to register separately.
ECC No: Excise Control Code
A tax number assigned, in India, by the Department of Revenue to legal and natural persons liable to excise duty. The taxpayer is required to obtain a separate ECC number for each registered premises (for example, factory, warehouse, or dealer's premises).
ER No: Excise Register No.
The number used to identify an excise registration, when a business registers with the local excise authorities, the authorities issue it a separate number of registration.
Excise Range:
The excise range in whose area the excise registration is located, a subdivision, in India, of an excise division. The excise ranges are responsible for issuing ECC numbers.
Excise Divisions:
A subdivision of an excise commissioner ate, in India. In turn, excise divisions are split up into excise ranges.
Excise Commissionerate:
An administrative body, in India, that assesses and collects excise duty. It reports to the Central Board of Excise and Customs.
There are around 90 commissionrates in India, and they are subdivided into excise divisions, which in turn are divided into excise ranges.
BED: Basic Excise Duty
The main type of excise duty in India, It is levied on a wide range of products, for example, foodstuffs, metals, jeweler, leather goods, and machinery.
AED: Additional Excise Duty
The excise registration is liable to additional excise duty. A form of excise duty, in India, levied on a select range of products, for the most part, textiles.
SED: Special Excise Duty
The excise registration is liable to special excise duty. A form of excise duty in India on a limited number of goods, mostly luxury goods, including pan masala, sparkling waters, furs, and yachts.
CESS:
The excise registration is liable to cess. In India, a tax on the manufacture of certain products, mostly food stuffs.
EI Items: Excise Invoice
The maximum number of line items that you are allowed to include in a single outgoing excise invoice. This information affects the transactions for creating outgoing excise invoices for factory sales and for other movements. This information is used to split the transfer postings' items into multiple subcontracting challans.
Partial CENVAT Credit:
The excise registration is allowed to credit only a portion of its input excise duty to its CENVAT account.
When you post a goods receipt, the system splits the input excise duty on the material into its deductible and nondeductible amounts. It posts the deductible duty to the appropriate CENVAT account, and adds the nondeductible duty to the material value.
This information is also shown when you post the incoming excise invoice.
NCCD: National Calamity Contingent Duty
Liable To AT1, AT2, and AT3:
AT1 is SECONDARY HIGHER EDUCATION CESS, by ticking this tick box you declare that the unit under this registration ID is liable for SHECESS, other two tick boxes (AT2 & 3) are reserved for future taxes & additions.
2. Maintain plant settings for excise?
Spro IMG Logistics General Tax on goods movement India Basic Settings Maintain Plant Settings.
We maintain Excise Registration information relating to our plants.
Specifies whether you are allowed to receive more than one delivery per excise invoice, and if so, whether you can take the CENVAT credit immediately (Multiple Credits) or have to wait until the delivery has been made in full (Single Credit).
3. Maintain Excise Groups?
Spro IMG Logistics General Tax on goods movement India Basic Settings Maintain Excise Groups
Excise Groups: A unit within an excise registration, in India, which keeps its own set of excise records, whereas the excise registration reports to the excise authorities, the excise group is a purely internal organizational unit. Each excise group keeps records of all transactions that have to be reported to the excise authorities. When the time comes to present these records to the authorities, the excise registration compiles the information from all of its excise groups.
We define our excise groups. For each excise group, you can also control how various excise invoice transactions will work.
Excise Invoice Quantity to Goods Receipt: When you post a goods receipt using an incoming excise invoice as a reference document, to copy the excise invoice quantity to the goods receipt.
Excise Invoice Automatically During Billing: The system to automatically create an outgoing excise invoice immediately you create a commercial invoice or a pro forma invoice. The system creates the excise invoice in the background.
Part I Entry for Direct Consumption: Automatically creates two entries in Part I of register RG 23 A or RG 23 C immediately you post a goods receipt for direct consumption, one entry to record the goods receipt, and one for the goods issue.
Uniquely, goods for direct consumption are not added to a material stock. Instead, the system posts them straight to a consumption account. You do not create a separate goods issue.
However, with other goods, it is the goods issue material document that causes the system to create the Part I entry for the goods issue.
We enter a goods receipt for 100 lengths of steel for direct consumption. The system creates a single material document for the goods receipt and issue. From this material document it generates two Parts I entries for register RG 23 A, one for the goods receipt and another for the goods issue.
MIGO Settings:
Excise Invoice in MIGO:
When we run the Goods Movement transaction, it shows two additional Excise Invoice tabs, one at header level and one at item level.
You enter the goods receipt details and the excise invoice information. When we save the goods movement, the system automatically saves the excise invoice,
4. Maintain Series Groups?
Spro IMG Logistics General Tax on goods movement India Basic Settings Maintain Series Groups
Series Groups: We define the different excise series groups within our company. Series groups allow you to maintain multiple number ranges for the outgoing excise documents.
Excise document series group: An excise registration uses various types of excise documents, including outgoing excise invoices and ARE-1s. It creates a series group for the ARE-1s, but
because it has so many excise invoices, it creates two series groups for these, one for finished materials, and one for raw materials.
5. Maintain Excise Duty Indicators?
Spro IMG Logistics General Tax on goods movement India Basic Settings Maintain Excise Duty Indicators
6. Tax Calculation Procedure?
Spro IMG Logistics General Tax on goods movement India Basic Settings Determination of excise duty Select Tax Calculation Procedure
Tax Calculation Procedures are Two Types:
The slandered system comes with two tax calculation procedures TAXINN is only support condition based excise determination, whereas TAXINJ supports condition based excise determination and formula based excise determination.
Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.
1) Formula Based Pricing procedures2) Condition Based pricing Procedures
Formula Based Pricing procedures:
Condition Based pricing Procedures:
When we enter a purchase document or purchase order enter the tax code for condition based excise determination in each line item, the R/3 system automatically calculates the applicable excise duties using the condition records.
Condition based pricing procedure maintain the condition records with respect to condition type, plant, vendor, material and tax key combination we will maintain condition records.
7. Maintain Excise Defaults?
Spro IMG Logistics General Tax on goods movement India Basic Settings Determination of excise duty Maintain Excise Defaults
We define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination.
8. Classifying Tax Conditions in TAXINN?
Spro IMG Logistics General Tax on goods movement India Basic Settings Determination of excise duty Condition based excise determination classify condition types
Condition type:
The system uses this information when you create a document from another one. For example, when you enter an incoming excise invoice from a purchase order, or when you create an outgoing excise invoice from a sales order, the system determines the various excise duties in the excise invoice using the information that you have entered here.
9. Define process modes per transaction?
Spro IMG Logistics General Tax on goods movement India Business Transactions Incoming Excise Invoice Define Processing Mode Per Transaction
In this process we specify which processing modes the user can use in the various Incoming Excise Invoice transactions.
The system comes with three standard transactions relating to the Incoming Excise Invoices function
J1IEX_C: This transaction is for excise clerks: users of this transaction can only capture and display excise invoices.
J1IEX_P: This transaction is for excise supervisors: they can change, display, cancel, and post excise invoices.
J1IEX: In this transaction, users can capture and post excise invoices, as well as displaying, changing, and canceling them.
ARE Document:
A document, in India, that accompanies exports and deemed exports. The documents ensure that you do not have to pay excise duty on these transactions.
There are two types of ARE documents, ARE-1 and ARE-3.
10. Define reference document per transaction for excise?
Spro IMG Logistics General Tax on goods movement India Business Transactions Incoming Excise Invoice Define Reference Documents Per Transaction
We specify for each combination of transaction and processing mode which reference documents you want the users to be able to use.
If you have already posted the goods receipt, you can use the goods receipt document as the reference document. When you enter the excise invoice in the system, you specify the number of the original goods receipt: this is the reference document.
We can active the check box, if you do not set this indicator, this option will not be available when the user runs the transaction.
11. Maintain Rejection Codes?
Spro IMG Logistics General Tax on goods movement India Business Transactions Incoming Excise Invoice Maintain Rejection Codes
We define the rejection codes that are used in the Incoming Excise Invoices transaction.
Allows you to record why you, for example, rejected or reversed an excise document.
For each rejection code, enter a code and a description. You can also specify whether the excise duty in the invoice is to be posted to the CENVAT on hold account, instead of the CENVAT clearing account.
12. Specify movement type involve excise invoice?
Spro IMG Logistics General Tax on goods movement India Business Transactions Incoming Excise Invoice Specify Which Movement Type involve in Excise Invoice
We specify which movement types relating to goods receipts involve excise invoices.
The system uses this information during the goods receipt procedure. When you post a goods receipt using one of the movement types that you have specified here, the system prompts you to enter the excise invoice number.
This option cannot be used for processing goods receipts without purchase orders.
Specifies a key for the type of goods movement. Each goods movement (for example, purchase order to warehouse) is allocated to a movement type in the system.
Goods Movement: A physical or logical movement of materials leading to a change in stock levels or resulting in the consumption of the material.
Movement Type: A classification key indicating the type of material movement (for example, goods receipt, goods issue, physical stock transfer).
The movement type enables the system to find predefined posting rules determining how the accounts of the financial accounting system (stock and consumption accounts) are to be posted and how the stock fields in the material master record are to be updated.
13. Subcontracting Attributes?
Spro IMG Logistics General Tax on goods movement India Business Transactions Subcontracting Subcontracting Attributes
The subcontracting attributes help determine conditions for a combination of an excise group, a transaction type, and a sub transaction type.
The conditions such as the number of excise items per subcontracting challan, if the non excisable materials have to be filtered or not when the subcontracting challan is created, the movement type groups for issues and receipts and the hierarchy of determining the excise base value are mentioned here.
Excise Transaction Type: Identifies the excise transaction.
The system uses the excise transaction type to determine which G/L accounts have to be posted to.
Subcontracting Period:
The maximum number of days that the materials can be with subcontractor without you having to reverse the excise on the CENVAT account.
This information is used when you create a subcontracting challan to determine on exactly which date the materials have to be returned by.
Movement Type group for Issue:
The movement types relevant for issue of materials are grouped for a combination of transaction type and sub transaction type.
Movement Type Group Receipts:
Receipts of materials are grouped for a combination of transaction type and sub transaction type.
Number of Items in Excise Invoice:
Shows the maximum number of line items that you are allowed to include in a single outgoing excise invoice.
This information affects the transactions for creating outgoing excise invoices for factory sales and for other movements.
This information is used to split the transfer postings' items into multiple subcontracting challans.
Subcontracting Output Type:
J1IF is the output type used for subcontracting challan.
14. Maintain movement type groups?
Spro IMG Logistics General Tax on goods movement India Business Transactions Subcontracting Maintain Movement Type Group
Movement Type Group:
Movement Type Groups will be used to club the movement types based on their nature (issues or receipts).
These Groups can be defined individually for each sub transaction type of every transaction type.
15. Excise Registers?
Spro IMG Logistics General Tax on goods movement India Business Transactions Excise Registers Specify SAP Script Forms
For each of our company codes, we specify which SAP script forms the system prints the excise registers with.
Country Version India includes a number of sample SAP script forms and printing programs
16. Number Ranges for Excise Documents? T. Code: J1I9
Spro IMG Logistics General Tax on goods movement India Tools Number Ranges
We can maintain the number ranges for all CIN Number range objects using this transaction
The Number of Number Ranges has to be ‘01’ for all
J_1IINTNUM: Internally document number to be generated
At an Excise group Level
J_1IRG23A : RG23A part I number range object,
J_1IRG23A2 : RG23A part II number range object,
J_1IRG1 : RG1 Number range object
J_1IRG23C1 : RG23C part I number range object
J_1IRG23C2 : RG23C part II number range object
J_1IPLA2 : PLA part II number range object
J_1IINTPR2 : Dispatch serial number
J_1IRG23D : Folio Numbers for RG 23D
J_1IRG1_T : No. Range for RG1 - Excise group / Material (at Material Level),
J_1ICONPLA : Consolidated PLA serial no. generation (If consolidated PLA is used)
At Series group level
J_1IEXCLOC : Local excise invoice number range,
J_1IEXCEXP : Export excise invoice number range,
J_1IEXCINV : Excise Invoice Number,
J_1IEXCTST : Excise Invoice with intervals,
J_1IDEPINV : Excise Invoice Number for Depot Invoices,
J_1I57FC : 57FC Number Range Object (57 F Challans)
17. Maintain Chapter ID’s?
Spro IMG Logistics General Tax on goods movement India Master Data Maintain Chapter ID
The number given to a material in the schedules of materials published by the government of India, the schedule lists all materials involved in manufacturing, input materials and output materials alike. It shows how much excise duty is levied on each material.
Each material in the schedule is assigned its own identification code, called "chapter ID."
If you want to see the details of particular chapter id click on Details icon
18. Specify Excise Accounts per Excise Transaction?
Spro IMG Logistics General Tax on goods movement India Account Determination Specify Excise Accounts per Excise Transaction
We specify which excise accounts (for excise duty and CENVAT) are to be posted to for the various transaction types. Enter all the accounts that are affected by each transaction type.
If we use sub transaction types, enter the accounts for each sub transaction type as well.
Transaction type UTLZ is used for determining accounts only while posting excise JVs and also if the payment of excise duty has to be done fortnightly.
Excise Transaction Type:
The system uses the excise transaction type to determine which G/L accounts have to be posted to.
19. Specify Excise GL Accounts per Excise Transaction?
Spro IMG Logistics General Tax on goods movement India Account Determination Specify Excise Accounts per Excise Transaction
This is for Country Version India, Financial Accounting Flow of Entries:
I. Procurement of Stock.
What should be my accounting entry in procurement?
For Domestic Procurement of Raw Material
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr.
Cenvat Clearing Cr.
During Invoice Verification
Cenvat Clearing Dr.
GR/IR Clearing Dr.
Vendor Payable Cr.
For Domestic proceurement of Capital Goods
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr. (50%)
Cenvat On-hold Dr. (50%)
Cenvat Clearing Cr.
During Invoice Verification
Cenvat Clearing Dr.
GR/IR Clearing Dr.
Vendor Payable Cr
Subsequent of Capital Goods
Cenvat Account Dr. (50%)
Cenvat On-hold Cr. (50%)
For Import Procurement of Raw Material
During Customs Duty Clearing invoice
Custom Clearing Dr.
Custom Payable Cr.
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr.
Custom Clearing Cr.
During Invoice Verification
GR/IR Clearing Dr.
Vendor Payable Cr.
For Excise Duty Credit of Raw Material without PO
Cenvat Account Dr.
Cenvat Clearing Cr.
For Excise Duty Reversal through Excise JV
Cenvat Clearing Dr.
Cenvat Account Cr.
What should be my accounting entry when the goods are issued through MM and excise invoice is created (J1IS & J1IV)?
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.
Note: Cenvat Suspense Account should be cleared apprpiately using FI JV's.
What should be my accounting entry in subcontracting reversal / Recredit ?
For Subcontracting Challan Reversal
Cenvat Reversal Dr.
Cenvat Account Cr.
For Subcontracting Challan Recredit
Cenvat Account Dr.
Cenvat Reversal Cr.
What should be my accounting entry in SD ?
For Factory Sale
During Billing Document
Customer Account Dr.
Sales Account Cr.
Cenvat Suspense Account Cr.
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.
For Stock Transfer through SD
No Accounting entries for Proforma Billing Document
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.
Note: Cenvat Suspense Account should be cleared apprpiately using FI JV's.
II. Central Excise
RG 1 - Production & Issues or Inputs form Production and Sales
RG 23A Part I - Link Stock Register, only Product details and Quantity details.
RG 23A Part II - Cenvat Credit on Incoming Materials & Duty Paybale on Outgoing Materials or on Sales (Monthly Register)
Excise PLA Register - TR 6 Challans
Form No. 5 Register - For Return Goods (Form D3 to be submitted to Excise Dept.,)
In SAP the Movement you save the MIGO Transaction, it automatically generate FI Document. It will create the following entry.
i). Inventory Raw Material A/c Dr
To GR/IR Clearing A/c Cr
In MIGO Transaction itself, you can post Excise by choosing capture and post Excise Invoice. The FI Document will be as follows.
ii). RG 23 A Basic Excise Duty A/c Dr
To Canvat Clearing A/c Cr
After doing MIGO, you execute MIRO. In this transaction also SAP will generate FI document automatically. The Entry will be as follows:
iii). GR/IR Clearing A/c Dr
Cenvat Clearing A/c Dr
VAT Setoff A/c Dr
To Vendor A/c Cr
III. Flow of Entries for a Normal Manufacturing Activity:
I. On Receipt of Raw Materials: (MIGO-movement type:101)
Dr. Inventory of Raw Materials 100
Dr. Inventory of Operating Supplies 20
Dr. Inventory of Packing Materials 10
Cr. GR/IR Clearing A/c 130
II. On Invoice Verification: (MIRO)
Dr. GR/IR Clearing A/c 130
Cr. Vendor A/c 130
III. On Goods Issued for Production: (MIGO-movement type:261)
Dr. Consumption of Raw Materials 100
Dr. Consumption of Operating Supplies 20
Cr. Inventory of Raw Materials 100
Cr. Inventory of Operating Supplies 20
IV. On Semi-Finished Goods Received form Process: (MIGO-movement type:101)
Dr. Inventory of Semi-Finished Goods 120
Cr. Cost of Goods Manufactured (Semi-Finished Goods)120
V. On Issued of Semi-Finished Goods for further Processing: (MIGO-movement type:261)
Dr. Consumption of Semi-Finished Goods 120
Dr. Consumption of Packing Materials 10
Cr. Inventory of Semi-Finished Goods 120
Cr. Inventory of Packing Materials 10
VI. On Finished Goods Received from Process: (MIGO-movement type:101)
Dr. Inventoyr of Finished Goods 130
Cr. Cost of Goods Manufactured (Finished Goods) 130
VII. On Finished Goods Issued for Sales: (VL01N-movement type:601)
Dr. Cost of Goods Sold (Finished Goods) 130
Cr. Inventory of Finished Goods 130
VIII. On Raising Bill for the Customer: (VF01)
Dr. Customer A/c 145
Cr. Sales A/c 145
CIN Configuration
Added by Guest, last edited by Somnath Manna on Feb 10, 2010 (view change)
Country Version India
A Country Version is designed specifically to cater the business operations of that country over and above the generic SAP system functionalities. It comprises of functionalities designed for the laws and business practices pertaining to the country.
Most of the country-specific functions for India relate to Financials and Logistics.
The main areas are as follows:
Excise duty and the central value-added tax system (CENVAT)
Withholding tax (also known as tax deducted at source)
Sales tax
Maintenance and printing of statutory excise registers
In Indian Taxing procedure, Excise Duty plays a vital role in manufacturing scenarios. Excise related configuration is known as CIN configuration. CIN Configuration is a topic in itself.
Here is some information on CIN Configuration. While it may not appear understandable as given below, it will be understood better when you check on screen.
Country Version India comes with four pricing procedures as follows:
JINFAC (Sales from manufacturing plants)
JINEXP (Export sales)
JINDEP (Sales from depots)
JINSTK (Stock transfers
CIN:
IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings >
Maintain Excise Registrations
Use
In this IMG activity, you maintain the data relating to your excise registrations.
Activities
Enter each of your excise registrations, specifying a four-character code for each
Excise Registration IDs
In this activity, you maintain excise registration IDs. You create one ID for each of your business's excise registrations.
Activities
For each excise registration in your business create a registration ID and state:
Which taxes the registration covers (additional excise duty, special excise duty, and cess) Fields for any taxes that are not covered will be hidden in transactions involving excise duty.
The maximum number of items to be printed on each excise invoice
Whether you are allowed partial CENVAT credits
Maintain Registration ID NUMBER, Excise code number, excise registration number
Excise Registration Number
A number assigned to each premises or location that has registered as a manufacturer with the excise authorities.
Every entity with an excise registration number is required to keep its own excise books.
ECC Number
Specifies the organization's ECC number.
Excise Registration Number
A number assigned to each premises or location that has registered as a manufacturer with the excise authorities.
Every entity with an excise registration number is required to keep its own excise books.
Excise range: Specifies the excise range in whose area the excise registration is located.
Excise Division
Specifies the excise division in whose area the excise registration is located.
Excise Collectorate
The code of the excise collectorate in whose area the excise registration is located.
Indicator for confirming AED usage
Additional Excise Duty Percentage. These are leviable under the additional duties of excise act. These duties are in addition to basic excise duty and special excise duty.
Example
Additional Excise duty is leviable in case of textile products, tobacco and sugar.
Similarly for SED CESS
Number of Items in Excise Invoice
Shows the maximum number of line items that the authorities allow per excise invoice.
Dependencies
This information is used when you create an excise invoice in Sales and Distribution (SD) for factory sales and for other movements.
This information is used to split the transfer postings' items into multiple subcontracting challans.
Excise register set description
Description of the excise registers set.
Partial CENVAT Credit
Indicates that the excise registration ID is allowed to credit only a portion of its input excise duty to its CENVAT account.
Dependencies
When you post a goods receipt, the system splits the input excise duty on the material into its deductible and nondeductible amounts. It posts the deductible duty to the appropriate CENVAT account, and adds the nondeductible duty to the material value.
This information is also shown when you post the vendor's excise invoice.
Maintain Company Code Settings
Use
In this IMG activity, you maintain the data relating to your company codes.
Document Type for CENVAT Postings
It controls, which document type the system uses when making CENVAT postings in Financial Accounting (FI). Here ED is document type for cenvat posting.
Indicator for providing debit account overwriting
Debit Account Overwrite Indicator. X - Indicates debit accounts can be overwritten. Use In excise journal voucher transaction. It provides the flexibility to the user to enter the debit account of his choice depending on the nature of transaction.
Automatic balance Indicator
Excise year start month
The calendar month marking the beginning of the excise year
Use
This start month represents the month for the start of the excise invoice number range. The month 04 is entered here indicating April of the calendar year as the start month for excise invoices. Any change by the Excise authorities regarding start month should be taken care of by an entry in this field and initialization.
Excise invoice selection procedure
Excise invoice selection type. To indicate the method opted by the company for selecting the excise invoice. It can be either earliest or latest invoices that were received.
Number of excise invoices to be selected
Indicates the number of excise invoices that needs to be selected in the excise invoice selection.
Days to be considered for excise invoice selection
Number of days from document date for excise invoice selection.
Example
If the value of this field is 20 and today is 28-03-97. The excise
invoice selection will show the related invoices only for the
period 08-03-97 to 28-03-97.
Document type for TDS FI posting
Financial accounting document type for TDS posting.
Document type for FI posting on Utilisation
Financial accounting document type for TDS posting.
Indicator for item level excise duty round off
This indicator is to be used for deciding whether Item level excise duty amount rounding off is required during procurement cycle. If marked 'X' then the excise duty amount will be rounded
off to the nearest rupee at the Purchase order level. This will not round off the CENVAT credit to be taken. If the duty amount is less than one rupee then no rounding is done
Rounding off of Excise duty for outgoing excise invoice
You can round off the Excise amount to be paid during an outgoing Excise invoice by marking this indicator as 'X'. The rounding is done at the item level for each item where the amount is greater than 1 Rupee.
Immediate Credit on Capital Goods
Instructs the system, when you verify a goods receipt for capital goods, to immediately post half of the input excise duty to the appropriate CENVAT accounts.
The rest is posted the CENVAT on hold account, for use in the following year.
CVD Clearing Account
Specifies which G/L account the system credits when you take a CENVAT credit on countervailing duty in the Incoming Excise Invoices transaction.
Exchange rate type
Key representing a type of exchange rate in the system.
Use
You enter the exchange rate type to store different exchange rates.
Example
You can use the exchange rate type to define a buying rate, selling rate, or average rate for translating foreign currency amounts. You can use the average rate for the currency translation, and the bank buying and selling rates for valuation of foreign currency amounts.
Exchange rate type to be used for Export excise duty converts
When you are creating an Excise invoice for export sales then the exchange rate for duty calculation will be picked up using this Exchange rate type.
Maintain Plant Settings
Use
In this IMG activity, you maintain excise information relating to your plants.
Plant Settings
In this activity, you maintain excise information relating to your plants.
Activities
For each plant:
? Specify whether it is a manufacturing site or a depot.
? Assign it an excise registration ID.
You can assign the same ID to more than one plant, if required.
Depot
Indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and invoice generation.
Number of goods receipt per excise invoice.
Multiple GR for one excise invoice, Single credit
Multiple GR for one excise invoice, multiple credits
Maintain Excise Groups
Use
In this IMG activity, you define your excise groups. For each excise group, you can also control how various excise invoice transactions will work.
Excise Groups
In this activity, you define excise groups. An excise group allows you to maintain a separate set of excise registers and excise accounts. The RG 23A, RG 23C and PLA serial numbers are created for an excise group.
Recommendation
Under normal circumstances, excise authorities require every business to maintain only one set of excise registers and one set of accounts. But through exemption from the authorities, multiple books can be maintained.
If your company has only one set of excise registers, then you need to maintain only one excise group.
Activities
1. Create one excise group for each set of registers that you need to keep.
1. Assign the excise groups to plants.
2. Maintain whether this Excise group is for a depot or not.
3. If you receive only one consignment for an Excise challan then you can leave GR's per EI as blank. If you receive multiple GR's for a given Excise challan and would like to avail multiple credit mark the GRs per EI as 'Multiple GR's for one excise invoice, multiple credit'. Alternatively if you want to avail the credit only after all the goods receipts have been made mark it as ' Multiple GR for one excise invoice, single credit'.
4. If you want to automatically create Excise invoice during Sales cycle at the time of billing the tick the indicator 'Create EI'
5. During depot sales if you do not want to do RG23D selection and posting separately and would like to complete RG23D selection in one step mark the indicator 'RG23D Auto post'. This will post the selected records into RG23D automatically. You cannot cancel the selection later.
6. If the indicator 'Default GR qty' is marked system will default the Excise challan quantity on to the Goods receipt if the Excise invoice number is given in the pop-up.
7. If the indicator 'Folio no create' is marked system will generate Folio numbers for RG23D during receipt of excise invoice into depot.
8. 'Automatic posting' when ticked will post the Excise invoice other movements automatically along with creation in single step.
9. 'Create Part1 for Block Stock' when marked will create a Part1 during the receipt of material into Blocked stock.
10. 'Create Part1 for STO' when marked will create a Part1 during the receipt of material through inter plant transfers.
11. 'Create Part1 for consumption stock' when marked will create a Part1 during the receipt of material into consumption stock.
Excise Group
Governs which set of excise registers a business transaction will be included in.
Following is the relation between excise group, plant and registration.
Dependencies
In define excise groups in Customizing.
Then, in transactions involving excise duty, for example, when you post a vendor's excise invoice, you specify which excise group you are using. This information tells the system which G/L accounts to post the excise to.
At the end of the period, when you come to prepare your excise registers, you create different sets for each excise group.
Indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and invoice generation.
GR per Excise Invoice
Multiple GR for one excise invoice, multiple credit
Multiple GR for one excise invoice, Single Credit
Create Excise Invoice Automatically
Instructs the system to automatically create a Sales and Distribution (SD) excise invoice immediately you create a commercial invoice or a pro forma invoice.
The excise invoice is created in the background.
Dependencies
If you want to make use of this function, you must also define the default plant, excise group, and series groups in Customizing for Sales and Distribution (SD), by choosing Excise Group - Series Group Determination.
RG23D Sales Creation and posting option
RG23D Automatic Option if selected will create Depot excise invoice by posting the selection of excise invoices in single step.
If this is not selected then you need to separately do RG23D selection followed by PGI and then RG23D verification and posting.
If you need automatic posting of RG23D selection then the Post Goods Issue should have been completed before running RG23D selection.
Default excise qty in GR
If this indicator is ticked then while doing Goods Receipt using 'MB01' system will default the excise invoice quantity on to the Goods receipt document.
Folio number for depot
Posting
If this indicator is marked then while creating Excise invoice for other movements system automatically does the Verify and Post. You need not separately Post the excise invoice
Also we can set indicator for creation of part 1 for:
Blocked stock
Stock transport order
Consignment stock
Maintain Series Groups
Use
In this IMG activity, you define the different excise series groups within your company. Series groups allow you to maintain multiple number ranges for the outgoing excise documents.
Based on excise regulations and exemptions from the authorities you can maintain multiple number series for outgoing documents. But each of these series has to be declared to the excise authorities.
Activities
? Define excise series groups based on type of outgoing document
? Assign series group to excise registration ID
? If no financial postings are required for an Excise invoice in this seris group then you tick the 'No utilization' indicator.
? If the CENVAT has to be paid immediately and you need not wait for the Fort nightly payment then mark the 'Immediate Utilization' indicator.
Example
You could define two series groups, group 001 for excise invoices, and group 002 for 57 F4 documents.
No account postings for CENVAT in sales cycle
No utilization Flag
If you do not need any CENVAT utilization for an excise invoice but would like to just generate an excise invoice then you need to mark this indicator.
IF the flag is checked then system will create an Excise invoice in the given Series group but there will not be any account postings or Part2 postings.
Immediate Utilization of CENVAT
Specifies that when you create an excise invoice, the system immediately pays the amount from CENVAT and creates the Part II entry. Such invoices will not be listed for fortnightly utilization.
If you have both fortnightly and immediate utilization for the same excise group, the account determination within CIN IMG should point to the ED interim account.
Account determination for immediate payment will be done exactly the same as being done for fortnightly utilization program.
Maintain Excise Duty Indicators
Use
In this IMG activity, you maintain the excise duty indicators.
IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty >
Select Tax Calculation Procedure
Use
In this IMG activity, you specify which tax procedure you want to use for determining excise duties and sales taxes on input materials in India.
? If you use condition-based excise determination, use a copy of the tax procedure TAXINN.
? If you use formula-based excise determination, use a copy of the tax procedure TAXINJ.
This tax procedure also supports condition-based excise determination, so that you can work with both concurrently.
We strongly recommend that new customers use condition-based excise determination. Note that once you have started using a tax procedure, you cannot switch to another one, otherwise you will not be able to display old documents.
Maintain Excise Defaults
Use
In this IMG activity, you define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination.
Activities
If you use condition-based excise determination, fill out the CVD cond. field and leave all the others blank.
If you use formula-based excise determination, fill out all of the fields as follows:
? Enter the tax procedure and the pricing conditions that are relevant for excise tax processing.
? Specify the purchasing and sales conditions types used for basic excise duty, additional excise duty, special excise duty, and cess.
? Specify the conditions in the sales order that are used for excise rates.
? Specify the countervailing duty condition type used for import purchase orders.
See also
SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materials Management (MM) -> Condition-Based Excise Determination and -> Formula-Based Excise Determination.
IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty >
Condition-Based Excise Determination
Use
When you enter a purchasing document, for example, a purchase order, the R/3 System automatically calculates the applicable excise duties using the condition technique.
Features
The standard system comes with two tax calculation procedures. TAXINN is only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise determination. Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.
Since the exact rates of excise duty can vary on a large number of factors, such as which vendor you purchase a material from, or which chapter ID the vendor stocks the material under, you create condition records for every sort of excise duty.
When you come to enter a purchasing document, the system applies the excise duty at the rates you have entered in the condition records.
Activities
Customizing
Make the settings in Customizing Basic? India?for Logistics - General, by choosing Taxes on Goods Movements Account? Excise Duties Using Condition Technique and ...?Settings Determination.
These activities include one activity where you define a tax code for condition-based excise determination.
Master Data
Create condition records for all excise duties that apply, and enter the tax code for condition-based excise determination in each.
Day-to-Day Activities
When you enter a purchase order or other purchasing document, enter the tax code for condition-based excise determination in each line item. The system then calculates the excise duties using the condition records you have created.
When the ordered materials arrive, you post the goods receipt and the excise invoice. The system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice.
Creating Condition Records for Excise Duty
1. In the command field, enter FV11 and choose .
2. Enter the condition type that you want to create a condition record for and choose .
The Key Combination dialog box appears.
3. Select the combination of objects that you want to create the condition record for.
On the dialog box, Control Code means "chapter ID."
So, for example, to create a condition record for a tax that applies to a combination of country, plant, and chapter ID, select Country/Plant/Control Code.
4. Choose .
5. Enter data as required.
In the Tax Code field, enter the dummy tax code that you have defined.
6. Save the condition record.
Formula-Based Excise Determination
Use
When you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.
Prerequisites
In order for the system to be able to determine which rate of excise duty to apply, you must have maintained all the data on the Excise Rate Maintenance screen, which you can Master Data?access from the SAP Easy Access screen by choosing Indirect Taxes Excise Rate Maintenance.?
You maintain the following types of data:
? Plant master data
You assign each of your plants an excise duty indicator. You can use the same indicator for all the plants with the same excise status from a legal point of view, such as all those that are in an exempt zone.
See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit).
? Vendor master data
For each of your vendors with the same excise status from a legal perspective, you define an excise duty indicator. You must also specify the vendor type - for example, whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as a small-scale industry.
For each permutation of plant indicator and vendor indicator, you then create a final excise duty indicator.
? Customer master data
Similarly, you assign the same excise duty indicator to each of your customers that share the same legal excise status.
Again, for each permutation of plant indicator and customer indicator, you then create a final excise duty indicator.
? Material master data
Each material is assigned a chapter ID.
? Excise tax rate
For every chapter ID and final excise duty indicator, you maintain the rate of excise duty.
If your business only qualifies for partial CENVAT credit, you must customize your system accordingly.
Activities
Let us consider an example to illustrate how the system determines which rate of excise duty to apply to a material. Assume you are posting a sale of ball bearings to a customer. The system automatically determines the rate of excise duty as follows:
1. Looks up the customer master data to see what status you have assigned the customer.
Let's assume you've assigned the customer status 3.
2. Looks up the plant master data to see what status you have assigned the plant.
Similarly, your plant has status 2.
3. The system looks up the table under Excise Indicator for Plant and Customer to see what the final excise duty indictor is for customer status 3 and plant status 2: It is 7.
4. The system determines the chapter ID of the ball bearing for the plant.
Let's assume the chapter ID at plant for the ball bearings is 1000.01.
5. Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000.01 under status 7.
Define Tax Code for Purchasing Documents
Use : In this IMG activity, you define a tax code for the purposes of calculating excise duty when you enter purchasing documents.
Only carry out this activity if you use condition-based excise determination.
Activities: Create a new tax code, and set the tax code type to V (input tax). Do not make any other settings for it.
Assign Tax Code to Company Codes
Use
In this IMG activity, assign the tax code for purchasing documents to the company codes where it will be used.
Only carry out this activity if you use condition-based excise determination.
Classify Condition Types
Use
In this IMG activity, you specify which condition types you use for which sort of tax. Note that this only applies to condition types that you use with the new excise determination method.
The system uses this information when you create a document from another one. For example, when you enter an incoming excise invoice from a purchase order, or when you create an outgoing excise invoice from a sales order, the system determines the various excise duties in the excise invoice using the information that you have entered here.
In addition, when you create a purchasing document, the system only uses the condition types that you enter here.
? For taxes on purchases, use the condition types contained in the tax procedure.
? For taxes on sales, use the condition types contained in the pricing procedures.
Standard settings
The standard system comes with sample settings for the tax calculation procedures and pricing procedures.
Use these settings as a basis for your own.
IMG > Logistics - General > Tax On Goods Movement > India > Account Determination
Define G/L Accounts for Taxes
Use
In this IMG activity, you specify which G/L accounts you will use to record which taxes.
Requirements
You have set up G/L accounts for each of the processing keys listed below.
Activities
Assign an account to each of the following posting keys. The accounts for VS1, VS2, and VS3 are used as clearing accounts during excise invoice verification.
? VS1 (basic excise duty)
? VS2 (additional excise duty)
? VS3 (special excise duty)
? VS5 (sales tax setoff)
? MWS (central sales tax)
? MW3 (local sales tax)
? ESA (service tax)
? ESE (service tax expense)
Specify Excise Accounts per Excise Transaction
Use
In this IMG activity, you specify which excise accounts (for excise duty and CENVAT) are to be posted to for the various transaction types. Enter all the accounts that are affected by each transaction type.
If you use subtransaction types, enter the accounts for each subtransaction type as well.
Activities
Transaction type UTLZ is used for determining accounts only while posting excise JVs and also if the payment of excise duty has to be done fortnightly.
The fortnightly CENVAT payment utility picks up the credit side accounts from the transaction types of GRPO, EWPO, and TR6C for determining the CENVAT and PLA accounts. There is no separate transaction type for fortnightly payment.
Example
Excise TT DC ind Account name
GRPO CR CENVAT clearing account
GRPO CR RG 23 BED account
GRPO DR CENVAT on hld account
Specify G/L Accounts per Excise Transaction
Use
In this IMG activity, you assign the excise and CENVAT accounts to G/L accounts.
When you come to execute the various transactions, the system determines which G/L accounts to post to by looking at the:
? Excise group
? Company code
? Chart of accounts
Furthermore, if you want separate account determination settings within an excise group, you can also use sub transaction types.
Requirements
You have already:
? Defined the G/L accounts
? Defined the excise groups
? Maintained the transaction accounts
Activities
For each excise group, assign the excise and CENVAT accounts to G/L accounts. For most businesses, one set of accounts will suffice for alltransactions.
Note
You need not remit the CENVAT to the excise department immediately, so maintain the credit account for transaction type DLFC as an excise duty interim account. This will be set off when you remit the duty.
Config setting needed to be done in order to get the Excise Details Screen in Material Master.
Even though this functionality is available in enterprise version, a small config step has to be made in Screen Sequences for Material Master.
Following document helps you to do this configuration.
? Material Master ? Logistics General ?1. Go to IMG Define Structure of Data Screen for each?Configuring the Material master Screen Sequence.
2. Select your screen sequence. Usually it would be 21. Select the same and click on Data Screen in the left frame.
3. Once the data screens are exhibited, select data screen no. 15, ie. SSq. 21and Scrn 15, which is "Foreign Trade: Import Data". Select the same and click on Subscreens in the left frame.
4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select the same. Click on tab view subscreen and ensure that the subscreen is blank.
5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 - 0001 and instead add SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.
6. Save the setting.
7. Create a Material Master and check whether in Screen Foreign Trade - Import, Excise related subscreen appears.
Back to ERP Operation Home.
Transaction Codes for India
Transaction
Action
J1I2
Prepare a sales tax register
J1I3
Create outgoing excise invoices in batches
J1I5
Update the RG 1 and Part I registers
J1IEX
Incoming Excise Invoices (central transaction)
J1IEX_C
Capture an incoming excise invoice (excise clerk)
J1IEX_P
Post an incoming excise invoice (excise supervisor)
J1IF01
Create a subcontracting challan
J1IF11
Change a subcontracting challan
J1IF12
Display a subcontracting challan
J1IF13
Complete, reverse, or recredit a subcontracting challan
J1IFQ
Reconcile quantities for subcontracting challans
J1IFR
List subcontracting challans
J1IH
Make a CENVAT adjustment posting
J1IIN
Create an outgoing excise invoice
J1IJ
Assign excise invoices to a delivery for sales from depots
J1INJV
Adjust withholding tax Item
J1INREP
Reprint a withholding tax certificate for a vendor
J1IQ
Year-End Income Tax Depreciation Report
J1IR
Download register data
J1IS
Process an excise invoice (outgoing) for other movements
J1IU
Process exemption forms
J1IW
Verify and post an incoming excise invoice
J1IX
Create an incoming excise invoice (without reference to purchase order)
J2I8
Transfer excise duty to CENVAT account
J2IU
Remit excise duty fortnightly
J2I9
Monthly CENVAT return
J1IG
Excise invoice entry at depot
J1IGA
Create additional excise entry at depot
J2I5
Extract data for excise registers
J2I6
Print excise registers
