MM-CIN imp

Materials Management

User Manual

Country India (Taxes)

Statement of ConfidentialityStatement of Confidentiality

This document contains information that is proprietary and confidential to CVSIT Services (I) Pvt. Ltd, which

shall not be disclosed outside “PHARMASYS”, transmitted, or duplicated, used in whole or in part for any

purpose other than its intended purpose. Any use or disclosure in whole or in part of this information without

prior written permission of CVSIT Services (I) Pvt. Ltd is prohibited.

Any other company and product names mentioned are used for identification purposes only, and may be

trademarks of their respective owners.

© Copyright 2001, CVSIT Services (I) Pvt. Ltd

TABLE of CONTENTS1 COUNTRY INDIA VERSION..........................................................................................................1-1

1.1 Excise Master..............................................................................................................................1-11.1.1 Material Chapter ID combination...........................................................................................1-11.1.2 Material Assessable value.......................................................................................................1-21.1.3 CENVAT Determination........................................................................................................1-21.1.4 Vendor Excise details..............................................................................................................1-31.1.5 Excise tax rate.........................................................................................................................1-31.1.6 Exceptional material excise rate..............................................................................................1-4

1.2 Procedure for Claiming CENVAT for Raw Materials................................................................1-51.2.1 Create the Purchase Order.......................................................................................................1-51.2.2 Goods Receipt to Unrestricted (Movement type: 101)...........................................................1-51.2.3 Capture the Vendor’s Excise Invoice......................................................................................1-71.2.4 Post the Vendors Excise Invoice...........................................................................................1-111.2.5 Display Excise Invoice..........................................................................................................1-13

1.3 Procedure for claiming CENVAT For Capital Items................................................................1-151.3.1 Create the Purchase Order for Capital goods........................................................................1-151.3.2 Goods Receipt to Unrestricted (Movement type: 101).........................................................1-151.3.3 Capture the Vendor’s Excise Invoice....................................................................................1-171.3.4 Post the Vendors Excise Invoice...........................................................................................1-211.3.5 Display Excise Invoice..........................................................................................................1-23

1.4 Subcontracting without payment of excise duty........................................................................1-241.4.1 Create Subcontracting Purchase order..................................................................................1-241.4.2 Create transfer Posting of materials sent out for sub-contracting with reference to Subcontractor PO...............................................................................................................................1-261.4.3 Create Subcontracting challan...............................................................................................1-291.4.4 Post goods receipt (MIGO)...................................................................................................1-321.4.5 Reconcile Subcontracting challan.........................................................................................1-331.4.6 List of subcontracting challans..............................................................................................1-351.4.7 Complete/Reverse/Recredit Subcontracting challan.............................................................1-361.4.8 Change Subcontracting challan.............................................................................................1-371.4.9 Display Subcontracting challan.............................................................................................1-37

1.5 Subcontracting with payment of excise duty.............................................................................1-371.5.1 Create subcontracting order for conversion charges.............................................................1-371.5.2 Providing input material to subcontractor from outside vendor...........................................1-371.5.3 Providing input material to subcontractor from Rallis manufacturing unit..........................1-381.5.4 Create an outgoing excise invoice for the materials.............................................................1-381.5.5 Confirming finished goods stock at Subcontractor’s premises.............................................1-401.5.6 Material requirement of depot on subcontractor...................................................................1-411.5.7 Despatch of material from subcontractor to depot................................................................1-421.5.8 Goods receipt at Depot..........................................................................................................1-44

1.6 Procedure for claiming CVD benefit for imported material......................................................1-451.6.1 Create Purchase order for imports.........................................................................................1-451.6.2 Entering invoices for Bill of Entry........................................................................................1-471.6.3 Capturing Excise invoice (Bill of Entry)..............................................................................1-501.6.4 Post goods receipt (MIGO)...................................................................................................1-521.6.5 Post Excise Invoice (Bill of Entry).......................................................................................1-53

1.7 Creation of Excise Registers......................................................................................................1-541.7.1 Updation of Registers (RG1)................................................................................................1-54

1.7.1.1 Receipt updation of Registers (RG1)...........................................................................1-551.7.1.2 Issues updation of RG1 register for captive consumption..........................................1-59

1.7.2 Data extraction......................................................................................................................1-661.7.3 Register printout....................................................................................................................1-67

PHARMASYS MM CIN user-manual

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COUNTRY INDIA VERSION

Excise Master

Menu path : India Localisation Indirect Taxes Excise Rate maintenance (J1ID)

Material Chapter ID combination

Select material chapter ID combination box and then press icon.

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

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

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In the material type tab select appropriate material type.

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

If it is capital item then select Assets.

If it is a inhouse 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.

Material Assessable value

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

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

CENVAT Determination

In this section you have to 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 indicatoris marked for such material.

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Vendor Excise details

In this section the vendor excise details are maintained.

The vendor number, his excise registration details, ECC no, Excise Range, Excise Division, Excise Commissionerate, CST no, LST no, Permanent account number, Excise ind for vendor, SSI status (if he is a SSI vendor), Type of vendor and CENVAT (This is applicable for SSI vendor only who has participated in the CENVAT scheme).

In the vendor excise details appropriate excise indicator should be selected from the drop down

menu of tab

In the type of vendor you have to select appropriate tab i.e. manufacturer, or First stage dealer, Importer, etc.

Excise tax rate

In this section you maintain the combination of chapter ID and final indicator (combination of plant and vendor indicator), valid from date , valid to date and percentage of excise duty

This indicator and chapter ID combination determines the excise duty for the material.

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Exceptional material excise rate

In this section you maintain such materials which are having different excise duty rates or having excise rate on basis of unit of measurement i.e. per no/per litre etc.

In the above case the combination of material and vendor is mentioned for a plant.

The excise rate mentioned is Rs per unit (Litre)

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Procedure for Claiming CENVAT for Raw Materials

Create the Purchase Order

Follow standard PO creation process

Goods Receipt to Unrestricted (Movement type: 101)

Menu Path: Logistics Materials Management Inventory management Goods movement goods receipt for purchase order Purchase order no. Known (MIGO)

a. Enter the PO number, Vendors Delivery Challan Number

b. Press Enter – at this point of time system will copy all the relevant information from PO and a Excise Invoice tab will appear in the Header screen as shown below ,select Only Part I on this tab and check the Excise group.

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c. Enter the Received Quantity in the Quantity tab in field Quantity in Unit of entry.

d. Enter receiving Storage Location in Where tab. Here check the stock type in which material is going to receive. If some text needs to be added regarding the goods receipt enter it in Text field.

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e. Check the Excise Details related to the received material in Excise Item tab in Detail Data screen as shown below.

f. Check the Item OK check box and press Check button in tool bar to check the entries

g. Press Post button to save the Goods receipt ,system will generate the Goods receipt Document. System will Automatically update the Part I register as soon as the GR is made.

Capture the Vendor’s Excise Invoice

Go to CIN transaction

Menu Path: User menu Indirect taxes Procurement Excise invoice Incoming Excise invoice Individual Processing Capture/Display

a. Select Capture Excise Invoice and Goods Receipt in windows above the Header.

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b. Enter Goods Receipt Document number generated in STEP 2.

c. Press Enter, following screen will appear

d. Enter Vendor Excise Invoice Number ,Excise Invoice Date ,Excise group – A1 onwards (or any other appropriate excise group).

e. If material had directly came from different vendor, Enter vendor code in Ship from field in Miscellaneous tab.

f. If Excise Invoice is faulty and still want to take the credit for the excise invoice, enter the rejection code .

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g. Check the Material Chapter Heading, Material type in Item tab in Detail Data screen.

h. Check the Quantity in Quantity tab

i. Check the Duty rate in Duty rate tab.

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j. Check duty values and Tax amount for the material in Duty value tab.

k. Check the Part I entries which are created immediately after the GR in Part I tab.

h. Tick the Item OK check box and Press button to check the entries.

i. Press save button to post the entry, Excise Invoice will be captured and following screen for information will be displayed.

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Post the Vendors Excise Invoice

Menu Path: User menu Indirect taxes Procurement Excise invoice Incoming Excise invoice Individual Processing Change/Display/Post/Cancel

a. Select Post and Vendor Excise Invoice in windows above the Header.

b. Enter Vendor Excise Invoice which is captured in previous Step and press Enter, following screen will appear with all the details captured from the Vendor ‘s Excise Invoice.

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c. Check the details and simulate to check the postings using Simulate button

.Following screen will appear. Check the postings

d. Press the Post bottom , this post the Part II entry , following screen will appear

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Display Excise Invoice

Menu Path: User menu Indirect taxes Procurement Excise invoice Incoming

Excise invoice Individual Processing Change/Display/Post/Cancel

Select Display and Vendor Excise Invoice in windows above the Header .Here you can display both the Part I and Part II entries in one document only. Check the Excise registers in which entry is made.

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Procedure for claiming CENVAT For Capital Items

Create the Purchase Order for Capital goods

Follow standard PO creation process and note the following things

In the Account assignment category enter “A”.

The system will prompt to put the asset number in the account assignment tab.

Put the asset number in the account assignment tab.

All the other details are as per the procedure of standard purchase order.

Save the purchase order.

Goods Receipt to Unrestricted (Movement type: 101)


a. Enter the PO number, Vendors Delivery Challan Number

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b. Press Enter – at this point of time system will copy all the relevant information from PO and a Excise Invoice tab will appear in the Header screen as shown below ,select Only Part I on this tab and check the Excise group.

c. Enter the Received Quantity in the Quantity tab in field Quantity in Unit of entry.

As described above in procedure for claiming modvat for raw material.

d. Enter receiving Storage Location in Where tab. Here check the stock type in which material is going to receive. If some text needs to be added regarding the goods receipt enter it in Text field.

As described above in procedure for claiming modvat for raw material.

e. Check the Excise Details related to the received material in Excise Item tab in Detail Data screen as shown below.

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f. Check the Item OK check box and press Check button in tool bar to check the entries

g. Press Post button to save the Goods receipt ,system will generate the Goods receipt Document. System will Automatically update the Part I register as soon as the GR is made.

l. Press Enter, following screen will appear

Capture the Vendor’s Excise Invoice

Go to CIN transaction

Menu Path: User menu Indirect taxes Procurement Excise invoice Incoming Excise invoice Individual Processing Capture/Display

a. Select Capture Excise Invoice and Goods Receipt in windows above the Header.

b. Enter Goods Receipt Document number generated above.

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a. Enter Vendor Excise Invoice Number ,Excise Invoice Date ,Excise group – A1 onwards (or any other appropriate excise group).

b. If material had directly came from different vendor, Enter vendor code in Ship from field in Miscellaneous tab.

c. If Excise Invoice is faulty and still want to take the credit for the excise invoice, enter the rejection code .

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d. Check the Material Chapter Heading, Material type in Item tab in Detail Data screen.

e. Check the Quantity in Quantity tab

f. Check the Duty rate in Duty rate tab.

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g. Check duty values and Tax amount for the material in Duty value tab.

h. Check the Part I entries which are created immediately after the GR in Part I tab.

h. Tick the Item OK check box and Press button to check the entries.

i. Press save button to post the entry, Excise Invoice will be captured and following screen for information will be displayed.

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Post the Vendors Excise Invoice

Menu Path: User menu Indirect taxes Procurement Excise invoice Incoming Excise invoice Individual Processing Change/Display/Post/Cancel

a. Select Post and Vendor Excise Invoice in windows above the Header.

b. Enter Vendor Excise Invoice which is captured in previous Step and press Enter, following screen will appear with all the details captured from the Vendor ‘s Excise Invoice.

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e. Check the details and simulate to check the postings using Simulate button

.Following screen will appear. Check the postings

f. Press the Post bottom , this post the Part II entry , following screen will appear

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Display Excise Invoice

Menu Path: User menu Indirect taxes Procurement Excise invoice Incoming

Excise invoice Individual Processing Change/Display/Post/Cancel

Select Display and Vendor Excise Invoice in windows above the Header .Here you can display both the Part I and Part II entries in one document only. Check the Excise registers in which entry is made.

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Subcontracting without payment of excise dutyWhen you issue materials to a subcontractor, you need to keep track of what materials you have issued and when they have to be returned by.

The reason for this close monitoring has to do with India’s tax law. Under excise law 57AC, when you send materials to a subcontractor for processing, you are not required to pay any excise duty, even though the materials have left your premises. However, if the materials have not been returned to you within a given length of time specified by the law (in 2000, 180 days), you will have to reverse any excise credit that you posted when you purchased the materials. In the case of materials that you have manufactured in-house, you will have to post credit entries to the extent of the CENVAT rate of the assessable value of the materials.

Create Subcontracting Purchase order

To create a subcontract order, proceed as follows:

1. Enter the material you want to order and the item category for subcontracting (L) in the order item.

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Select the line item and click the icon.

Press Enter to display the screen for component processing.

2. Enter the components that the vendor requires to manufacture the ordered material (end product).

Note the following:

You do not need to enter the date required for the components. This date is proposed by the system when you press Enter. It is calculated as follows:

Delivery date of the item minus planned delivery time

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If you do not want the quantity of the components to be changed if the order quantity of the end

product is altered, set the indicator Fixed quantity.

If you want to assign a particular batch of the component to the vendor for the manufacture of the ordered material, enter the desired batch.

You can determine whether the components are available on the date required by selecting Component List Component Availability.

3. If you entered a bill of material as the material in the subcontract order, the components are created automatically.

If you want to determine the components in the bill of material at a later date (for example, if the bill of material is subsequently changed), choose Item Goto Components New BOM explosion. The existing components are deleted and redetermined in the bill of material.

4. Save the purchase order.

When you print the purchase order, the components are printed per order item.

Create transfer Posting of materials sent out for sub-contracting with reference to Subcontractor PO.

Path : Logistics Materials Management Purchasing Purchase Order Reporting SC Stocks per Vendor.1. On the initial screen enter the Subcontractor (Vendor) code in Vendor, Material number to be

given to Subcontractor in Component Provided and Plant and Execute button for going to the next screen.

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2. After executing following screen will appear,

3. Select the check box in front of the Material number and press the Post goods Issue tab in the tool bar as marked with arrow, you will get the following pop up

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4. Here enter the Quantity in Quantity field to be transferred to Subcontractor and the storage location in Storage Location field from which stock is available for removal.

5. If the material is managed in Batches , then enter the Batch Number in Batch field.

6. Press on the Popup screen and a following message will be flashed

7. System will generate the Material Document Number, Note this number. For noting the Material number go to following transaction

Path : Logistics Materials Management Inventory Management Environment List Display Material Documents (MB51),

1.Enter Material number which you have despatched ,Plant number, Storage Location from which you have despatched Subcontractor Number (Vendor Number), Movement Type 541

and Posting Date in the following screen.

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Press execute button to go to the next screen, the following screen will be seen,

From this note the Material document and generate the Dispatch Challan as described in Excise Procedures.

Create Subcontracting challan

You create challans from transfer orders to accompany any materials that you send to subcontractors under rule 57AC. In this respect, they are an extended form of delivery note, with

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additional information about the excise duty on each material that you have supplied. Materials that are not liable to excise duty do not have to be included in the challan.

As the subcontractors return the finished goods to you, you record the returns in the challan, to make sure that all are returned within the allotted time limit.

If the finished goods returned to you by the subcontractor are of substandard quality, you can also create a subcontracting challan from the returns order

Menu path – India localisation menu (J1ILN) Indirect taxes Procurement Subcontracting Subcontracting challans Create (J1IF01)

Enter material document number generated while making transfer posting document.

Press Enter

In the overview tab we can see the transfer posting document number in the Reference document tab.

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In the org data tab we can see the company code, plant, excise group, excise series group and business area.

Select quantiy overview tab and check the quantity.

Press save

Note down the document number.

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This is the consignment document that you will send to the subcontractor along with the materials that are to be processed.

You send the materials to the subcontractor, along with a printout of the subcontracting challan.

The subcontractor processes the materials and returns the finished goods. When the goods are delivered back to you, the storeperson posts goods receipt.

The delivery may not necessarily cover all the goods from the challan: It may also include goods from a number of different challans. The SAP functions allow for this eventuality.

Post goods receipt (MIGO)


Enter the PO number

Check the quantity in the quantity tab.

Select Only Part 1 in the excise tab.

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Press check and a signal will appear.

Select save icon.

Note down the goods receipt document number.

Reconcile Subcontracting challan

Menu path – India localisation menu (J1ILN) Indirect taxes Procurement Subcontracting Subcontracting challans Reconcile Quantity (J1IFQ)

Enter the following data:

In the Material Doc. and Mat. Doc. Year fields, enter the number of the goods receipt document and the year in which it was created.

In the table below, enter the challan numbers and the years in which they were created.

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Press icon.

A new screen appears. At the top is the information about the goods receipt (or other document); at the bottom is the information from the challans that you have entered.

Check the challan numbers against which the material was sent to subcontractor.

If you have sent a subcontractor a number of different challans, all containing the same material, you can automatically specify that the materials should come from the oldest challans first, by

choosing .

Otherwise, for each challan, enter manually the quantity of materials has been returned, and

choose to refresh the display.

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Choose and check the tab open quantity and assigned quantity.

Once you have accounted for all the materials in the goods receipt, save the challan by choosing

icon .

You get the message material document xxxxx year xxxx was successfully reconciled.

List of subcontracting challans

You use this report to create a list of subcontracting challans. Depending on what selection criteria you enter, you can use it for finding out:

a) Which challans are still with the subcontractor and are due back the following week

b) Which challans you can make a recredit for

c) Which challans have been entered for a goods receipt, but not reconciled

d) Which challans' reference documents have been canceled

e) Annexure IV

Menu path : India Localisation menu (J1ILN)Indirect Taxes Procurement Subcontracting Reports Challan Listing (J1IFR)

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You can give any selection criteria for generating the report.

e.g. We select the challan status – F which means to show list of challans with status fully reconciled.

Press

Complete/Reverse/Recredit Subcontracting challan

Menu Path : India Localisation menu Indirect Taxes Procurement Subcontracting Subcontracting Challans Complete/Reverse/Recredit.

Enter the challan number and year.

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Choose

Select Complete Challan .

Save the challan .

Note down the message as given below.

Change Subcontracting challan

Menu Path : India Localisation menu Indirect Taxes Procurement Subcontracting Subcontracting Challans Change (J1IF11).

Enter the challan number select

The challan is displayed.

Display Subcontracting challan

Menu Path : India Localisation menu Indirect Taxes Procurement Subcontracting Subcontracting Challans Display(J1IF12).

Enter the challan number select

The challan is displayed.

Subcontracting with payment of excise duty

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This scenario covers the Rallis requirement, where material is sent for conversion charges to subcontractor on payment of excise duty and finished product is received at the depots from the subcontractor.

Create subcontracting order for conversion charges

Create subcontracting order as per documentation in 1.4.1.

Providing input material to subcontractor from outside vendor.

Create a purchase order on the vendor supplying input material as per the documentation given in vol.1 under heading create purchase order for stock material.

Please note the following things.

a) Delivery address in the item details should be mentioned subcontractor’s address and the SC check box should be selected.

Providing input material to subcontractor from Rallis manufacturing unit

Create transfer posting document as per documentation in 1.4.2 for the input materials which are required to be supplied from Rallis manufacturing units.

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Create an outgoing excise invoice for the materials.

You send the materials to the subcontractor, together with the excise invoice.

Menu path : India localisation menu Indirect taxes Sales/outbound movements Excise invoice For other movements Excise invoice for other movements (J1IS)

Press .

Select material document number (transfer posting number from document prepared in 1.5.4)

Press

Press .

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Note down the number.

Press .

Press .

Select

Please note down the excise invoice number.

Select from the Pull down menu Goto Print document.

Take a printout and send the material from Rallis manufacturing site.

Confirming finished goods stock at Subcontractor’s premises.

When input material is converted into finished product, subcontractor will give a document of production confirmation and on basis of this document the Rallis Regional office person will make a goods receipt against the subcontracting purchase order.

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To do goods receipt process please follow the standard process as mentioned in the documentation in vol 1 under the heading Inventory management goods receipt against purchase order.

Select the entry Only part 1 in the excise tab.

Please note that do not press the icon.

Material requirement of depot on subcontractor.

Create a stock transport purchase order from depot on regional office (plant in SAP).

Menu path : Sap easy access menu Logistics Materials Management Purchase order Create Vendor / Supplying plant known. (ME21N)

Select Stock transport order from the first tab and the screen will change.

Enter supplying plant in the supplying plant tab

Mention the depot plant number in the receiving plant tab.

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Put the other terms and conditions as per the standard purchase order as mentioned in the documentation in volume 1 in create purchase order for stock items.

Save the purchase order.

Note down the number.

Despatch of material from subcontractor to depot.

The regional office person will capture the excise invoice for the material which is being despatched to the depot.

Please follow the standard process for claiming cenvat credit for raw materials as mentioned in the documentation above.

Then, regional office person will create a outbound delivery with reference to the stock transport purchase order mentioned above in 1.5.6.

The regional office will also instruct the subcontractor to enter the outbound delivery in the despatch excise invoice. The outbound delivery number will be used as a reference for making the goods receipt at depot and the subcontractor excise invoice will be put in the reference text field while making goods receipt.

Menu path : Sap easy access menu Logistics Logistics Execution Outbound process Goods issue for Outbound delivery Create Collective processing of documents due for delivery Purchase orders (VL10B)

Select

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Select the line item and Press .

Select

Select

Select

Select and then select .

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Enter storage location SC01 (storage location having address of subcontractor) and put the quantity to be despatched from subcontractor as picking quantity.

Select the ikon

Message will appear repleshment delivery saved.

The material gets transferred from the storage location of Regional office into stock in transit of the depot plant.

Run report MB5T and enter the material number and receiving plant to see the stock in transit.

Select .

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The stock in transit is displayed.

Goods receipt at Depot.

The depot will make goods receipt with respect to the outbound delivery number which is mentioned on the subcontractor’s excise invoice.

The procedure for making goods receipt will be standard as per the procedure mentioned earlier in documentation volume 1 – goods receipt with reference to purchase order. (instead of purchase order, user has to select the outbound delivery in the reference tab).

Save the goods receipt.

Procedure for claiming CVD benefit for imported material.Create Purchase order for imports

Create a purchase order for the materials that you want to order using the standard procedure as mentioned in above documentation but when you fill out the item information.

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Make sure that you observe the following:

Invoice tab

Enter a zero-rate tax code

Deselect GR-based IV

Conditions tab

a. Select the countervailing duty (CVD) condition and choose .

b. In the Rate field, enter the rate of CVD that will be levied on the material when it arrives at customs.

c. In the vendor field, enter the vendor master record that you have created for the customs office.

To do this select the CVD condition which is marked by arrow and then press button in the conditions tab.

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Enter the custom vendor number in the vendor field.

The vendor ships the goods to you.

When the goods arrive in India, they go through customs. The customs officers issue a bill of entry for the goods, which is in effect an invoice for the CVD on the goods. Once they have inspected the goods, they send them on to you.

Entering invoices for Bill of Entry

The goods arrive at your plant, together with the bill of entry. In order to record the bill of entry in the system

The excise clerk enters a invoice for the bill of entry.

To enter the invoice for bill of entry follow standard invoice verification procedure but make sure you observe following

Header Data

Basic data tab

o In the Amount field, enter the amount of countervailing duty (CVD) stated on the bill of entry in rupees. Also enter the amount of other custom duties if any.

o Do not enter any other taxes.

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Details tab

o Assuming you specified in the purchase order that the CVD was to be paid to the customs office, the system shows the customs office as the vendor. If not, enter the customs office’s vendor master record in the Inv. party (Invoicing party) field.

Line Items

On the PO reference tab, enter data as follows:

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Enter the number of the purchase order related to this delivery.

If you only created one purchase order for the goods, enter the purchase order number and select Planned delivery costs.

If you sent more than one purchase order to the vendor and it sent you all of the ordered materials together in one shipment:

i. Choose .

ii. Enter all of the purchase order numbers in the table.

iii. Select Planned delivery costs.

iv. Select Deliveries and deselect Returns.

v. Choose Adopt.

In both cases, the system displays the line items in the line item overview

For each line item:

In the Amount field, enter the amount of CVD on the item (if you have more than one item, you may have to work the amount out manually).

In the Quantity field, enter the quantity of goods on the invoice.

Enter a zero-rated tax code.

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Choose Simulate.

A dialog box appears with a list of the postings that will be made to Financial Accounting (FI).

Choose Post.

Note down the document number (commercial invoice number)

Capturing Excise invoice (Bill of Entry)

Menu path : India Localisation menu (J1ILN) Procurement Excise Invoice Incoming Excise Invoice Individual Processing Capture/Display.

In the top line:

Select Capture Excise Invoice

Select Purchase Order.

Enter the purchase order related to the bill of entry.

Choose

A dialog box appears.

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3. Enter the number of the invoice that you entered for the bill of entry and choose

If you need to enter any other purchase orders, enter the number in the top line as for step 3.

Note that this time, you do not need to enter the invoice number.

Enter other data as required.

Note that the countervailing duty is displayed in the basic excise duty fields.

Enter the bill of entry number and date in the excise invoice number and Doc date field respectively

Save the excise invoice.

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Post goods receipt (MIGO)


Enter the PO number

Select

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Select and then

Note down the Goods receipt number

Post Excise Invoice (Bill of Entry)

Menu path : India Localisation menu (J1ILN) Procurement Excise Invoice Incoming Excise Invoice Individual Processing Change/Display/Post/Cancel.

Select Post CENVAT and Vendor Excise Invoice

Enter the number of the excise invoice that you created for the bill of entry.

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Check that the data is correct.

Choose Simulate CENVAT

A dialog box appears with a list of the accounting entries that will be made to transfer the CVD from the clearing account to the excise duty account.

To close the dialog box, choose .

If the data is correct, the signal is choose Post CENVAT.

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The system posts the CENVAT (CVD Amount) and creates a corresponding entry in Part II or the appropriate excise register.

Creation of Excise RegistersYou follow this procedure to create the excise registers.

Three steps are to be followed for creation and printing of the excise registers

Updation of Registers (RG1).

The updation of registers includes receipts and issues.

The classification of receipts and issues is done by selecting the appropriate classification as per the table given below.

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Receipt updation of Registers (RG1).

Process of receiving material in RG1 can be given below step by step.

a. The inhouse produced material will be confirmed by way of process order confirmation in storage location at plant (e.g.PL01). Stock will be available in the system in storage location PL01.

b. See stock overview(MMBE)

c. Now the stock in production location is moved in RG1 by transfer posting (movement type 311)

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Save the document and note down the number.

d. Now go to the

Menu Path : India Localisation menu (J1ILN) Indirect Taxes Registers Excise Tax Update RG 23A/C Issues and RG 1.

On the selection screen, you specify

Which documents you want to cover:

o Enter general organizational details in the Company details group box.

o Enter details about the documents that you want to include in the register, in the Document header and Document details group boxes.

Select movement type 311 and storage location FG01 (RG1 location).

Also select appropriate classification type (RMA) in case of receipt from manufacture.

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Select register RG1, in the Registers group box

Select

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Then select

The signal becomes

Then put tick in checkbox and select for updating receipt in RG1 register.

RG1 Register is updated and the screen looks as given below.

e. See stock overview again (MMBE)

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Issues updation of RG1 register for captive consumption.

When a RG1 material (technicals inhouse produced) is used for captive consumption (for formulation) following steps will be followed.

1. Stock of technicals will be available in RG1 storage location (FG01).

See stock overview of material.

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2. Material movement takes place from RG1 location to formulation location by transfer posting. (movement type 311).

Save and note down the transfer posting document number.

When a material is removed from RG1 for captive consumption an excise invoice has to be prepared with zero excise duty and mentioning for captive consumption.

3. Excise invoice is created in system with reference to transfer posting document.Menu path : India Localisation menu Indirect taxes Sales/Outbound movements Excise Invoice For other movements Excise invoice for other movements (J1IS)

Select .

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Enter the reference material document number (transfer posting) and excise group, series group and customer number (put the customer number of manufacturing unit)

Press enter and following screen appears

Press .4. Post excise invoice.Menu path : India Localisation menu Indirect taxes Sales/Outbound movements Excise Invoice For other movements Excise invoice for other movements (J1IS)

Select .Enter the internal excise number generated.

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Press .

Select .Note down the excise invoice number.

5. Print the excise invoice if required.

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Select excise invoice and print.

6. Updating the issue of material in RG1 register.

Menu Path : India Localisation menu (J1ILN) Indirect Taxes Registers Excise Tax Update RG 23A/C Issues and RG 1 (J1I5).

On the selection screen, you specify

Which documents you want to cover:

o Enter general organizational details in the Company details group box.

o Enter details about the documents that you want to include in the register, in the Document header and Document details group boxes.

Select movement type 311 and storage location FG01 (RG1 location).

Also select appropriate classification type (IWT) in case of removal without payment of duty for transfers.

Select register RG1, in the Registers group box

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Select

Then select

The signal becomes

Then put tick in checkbox and select for updating issues from RG1 register.

RG1 Register is updated and the screen looks as given below.

7. See stock overview again (MMBE)

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Data extraction

Menu path : India localisation menu Indirect taxes Registers Excise Tax Extract (J2I5)

On the selection screen enter the excise group, start date (of the month) and end date (of the month) and select the registers for which the data extraction is required.

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Select

Following screen appears

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Register printout

You use this report to print out your excise registers.

Menu path : India localisation menu Indirect taxes Registers Excise Tax Print utility program (J2I6)

On the selection screen select the registers which are to be printed.

Select

On the selection screen select the excise group, start date (of the month) and end date (of the month).

Select

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Select suitable printer and print the register.

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