CIN Manual

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    COUNTRY INDIA VERSION (CIN) - MATERIAL MANAGEMENT

    Contents

    1.1 EXCISE REGISTRATION ..................................................................................................... 3

    1.2 EXCISE GROUP .................................................................................................................... 3

    1.3 SERIES GROUP .................................................................................................................... 3

    2 ESSENTIAL MASTER DATA FOR EXCISE .............................................................................. 4

    2.1 Chapter Id ........................................................................................................................... 4

    2.2 Material Chapter ID combination ...................................................................................... 4

    2.3 Material Assessable value .................................................................................................. 5

    2.4 CENVAT Determination ....................................................................................................... 5

    2.5 Vendor Excise details .......................................................................................................... 5

    3 TAX CONDITION RECORDS ...................................................................................................... 6

    3.1 Cenvatable Excise Duties Conditions (%ge) .................................................................. 6

    3.2 Cenvatable Excise Duties Conditions (Qty) .................................................................... 6

    3.3 Non- Cenvatable Excise Duties Conditions(%g e) .......................................................... 7

    3.4 Non- Cenvatable Excise Duties Conditions(Qt y) ........................................................... 7

    3.5 VAT Conditions .................................................................................................................... 7

    3.6 CST Conditions ................................................................................................................... 7

    3.7 Service Tax Conditions: Non-Inventoried ....................................................................... 8

    3.8 Service Tax Conditions: Inventoried ................................................................................ 8

    3.9 Tax Conditions to be Maintained ...................................................................................... 8

    4.1 Create the Purchase Order ................................................................................................. 9

    4.2.1 Option I: Capture Excise Invoice @ Goods Receipt ............................................... 9

    4.2.2 Option II: Capture Excise Invoice separat ely ........................................................ 10

    4.3 To check the status of all the excise invoi ces captured ............................................ 11

    4.4 Post Excise Invoice ........................................................................................................... 11

    5 Procedure for Claiming CENVAT for Capital Goo ds .......................................................... 13

    6 Procedure for Claiming Duties for Imported Go ods .......................................................... 14

    9 Procedure for Inventorizing Custom Duties Pur chased for a Depot .............................. 18

    10.1 Return Delivery (MvT : 122) ............................................................................................ 19

    10.2 Cancellation of Material Documents ............................................................................ 20

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    10.3 Purchase Order Returns ................................................................................................. 22

    10.4 CENVAT Adjustment Postings (J1IH Excise JV) .................................................... 22

    10.4.1 Making Adjustment Postings for Scrap ................................................................ 22

    10.4.2 Making Adjustment Postings for Materials Not Used in Production .............. 22

    10.4.3 Making Adjustment Postings for Additiona l Excise Paid to Vendors ............ 23

    10.4.4 Making Adjustment Postings for Money Tra nsferred to PLA ........................... 24

    10.4.5 Canceling Excise Invoices ...................................................................................... 24

    10.4.6 Making Adjustment Postings for Other Tra nsactions ....................................... 25

    11 Subcontract Challan ............................................................................................................... 27

    11.3 Subcontract Process: Return Delivery To Ve ndor .................................................... 30

    11.4 Subcontract Process: Cancellation of Goods Receipt ............................................. 31

    11.5 Subcontracting over consumption or under c onsumption ..................................... 32

    11.6 Challan completed 180 days reverse and rec redit the challan ............................... 33

    12 Frequently Asked Question .................................................................................................. 33

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    1 THE COUNTRY INDIA VERSION (CIN)

    CIN facilitates handling of tax implications during the Purchase and Sales cycles. This country version is designed for use by businesses with operations in India as well as the generic SAP System functions. It comprises functions designed for laws and business practices particular to India, and a country template to help customize the system according to local requirements. 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

    1.1 EXCISE REGISTRATION

    Each entity is assigned its own excise registration number. Every factory that manufactures excisable goods is required to register separately.

    1.2 EXCISE GROUP

    This is 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.

    Excise Group determines Excise Register number range

    All excise Reports (RT-12, PLA, RG23A Part I & II , RG23C Part I & II) will be generated based on this Excise Group.

    1.3 SERIES GROUP

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    Series Group determines number range for outgoing excise invoice / challan (e.g. 57AC challan etc.)

    2 ESSENTIAL MASTER DATA FOR EXCISE

    Transaction Code: J1ID

    - Excise Master.

    - Material Chapter Id Combination.

    - Material Assessable Value.

    - CENVAT Determination

    - Vendor Excise Details.

    2.1 Chapter Id

    Select Chapter Id Go to New Entries and Enter Chapter Id and Description.

    2.2 Material Chapter ID combination

    Select material chapter ID combination box and then press icon.

    Select Material & Chapter Id

    Enter material, plant and chapter ID combination in the respective tabs.

    Go to New Entries and Enter the details

    If the material can be sent outside for subcontracting purpose then put a tick in the check box

    In the material type tab select appropriate material type.

    If it is a input material then select the tab Raw material

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    If it is capital item then select Assets.

    If it is a in-house produced material then select RG1.

    Select GR --X ref to specify whether credit is allowed only for single goods receipt or multiple goods receipt with single credit or multiple goods receipt with multiple credits.

    In the declared column enter X if the material is declared to excise

    Also enter the date of declaration.

    2.3 Material Assessable value

    In this section we enter the assessable value of material which is used for the purpose to determine how much excise can be credited to CENVAT account when creating a subcontracting challan and vendor returns.

    Enter the combination plant, material number, valid from, currency, Assessable value.

    Select Material Assessable Value Go to New Entries and Enter the details

    2.4 CENVAT Determination

    In this section enter the input and output relationship of the material with combination of plant, default indicator for Modvat.

    Companies are required to file with the Excise authorities, a list containing the excisable finished products manufactured and the excisable input materials required for such production, to avail Modvat.

    It is possible that an input material may be used in the production of more than one finished product. However, if such a material is mainly used for the manufacture of a particular finished product then the input material is identified to be the default material. The default indicator is marked for s