Download docx - CIN MM Induction Manual

Induction Manual

Materials Management

CIN

Agro

Version 1.0

Date: 28/03/2008

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Organization Structure

Materials Management Org. structure

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Agro Sector

Storage Locations Storage Locations Storage Locations Storage LocationsStorage Locations Storage Locations

ContentsBusiness Process in AGRO.........................................................................................................................................................................4

Handling of Excisable and Raw materials:-........................................................................................................................4

Handling of Asset/Capital goods:-.....................................................................................................................................4

Handling of Return to Vendor:-.........................................................................................................................................5

Handling of Sub-Contracting Process:-..............................................................................................................................5

Handling of Molasses as per the Notification 67/95 (Applicable to Agro sector):-............................................................6

Summary of process -.................................................................................................................................................................................6Organization Consideration for Excise -....................................................................................................................................................7Important point to be considered for Cenvat...............................................................................................................................................7Types of Taxes and Duties in GMR Group:-...............................................................................................................................................8

Domestic Duties................................................................................................................................................................8

Import Duties....................................................................................................................................................................8

Standard Definitions....................................................................................................................................................................................8Excise Registration:-..........................................................................................................................................................8

Excise Group:-...................................................................................................................................................................9

Series Group:-....................................................................................................................................................................9

Master Data:-....................................................................................................................................................................9

Material Master................................................................................................................................................................9

Vendor Master..................................................................................................................................................................9

Excise Master..................................................................................................................................................................10

Procurement Scenarios of GMR Agro -....................................................................................................................................................10Subcontracting without payment of excise duty.............................................................................................................14

Subcontracting under full payment of duty....................................................................................................................16

Posting Subsequent Adjustment :-..................................................................................................................................16

Rejection of Excise Invoices:-..........................................................................................................................................17

Posting CENVAT on rejected excise invoices:-.................................................................................................................17

Handling of Services:-......................................................................................................................................................18

Handling of Stock Transfer between Plant to Plant:-.......................................................................................................19

Handling of Molasses as per the Notification 67/95:-.....................................................................................................19

Excise Periodic Activities:-...............................................................................................................................................20

Condition Types for Excise/VAT and Service Tax...................................................................................................................................21Procedural Steps for Marinating Master Data...........................................................................................................................................22Procedural Steps for Domestic Purchase...................................................................................................................................................24

1.1. Access transaction by:.........................................................................................................................................24

1.2. On screen “Create Purchase Order”, select the document type GDOM Domestic Purchase Order....................24

Procedural Steps for Domestic Procurement for Cost Center...................................................................................................................34

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1.3. Prerequisite.........................................................................................................................................................34


Procedural Steps for Assets.......................................................................................................................................................................471.5. Prerequisite.........................................................................................................................................................47


On screen “Create Purchase Order”, select the document type GDOM Domestic Purchase Order................................47

Procedural steps for Excise Imports..........................................................................................................................................................591.7. Prerequisite.........................................................................................................................................................59


On screen “Create Purchase Order”, select the document type GIMP Import Purchase Order......................................63

Procedural Steps for Sub-contracting Purchase Order Cycle....................................................................................................................771.9. Prerequisite.........................................................................................................................................................77

Maintain Material V/S Chapter ID – T.Code-J1ID............................................................................................................77

1.10. Maintain Bill of Material(BOM) for end Product (S30SUGAR).........................................................................78

1.11. Access transaction by:.....................................................................................................................................79

On screen “Create Sub-Contracting Purchase Order”, select the document type GDOM Domestic Purchase Order.....79

Overview of RG1 Register – Update.........................................................................................................................................................941.1. Access transaction by:.........................................................................................................................................94

1.2. On screen “Update of Registers RG1 and RG 23(Part1) : Initial Screen”, enter the below information:.............95

Overview – Excise JVs............................................................................................................................................................................100Access transaction by:...................................................................................................................................................100

1. Material Write off......................................................................................................................................................100

1.1 On screen “Excise JV- Main Menu”, Select Matl Write off......................................................................................100

2. Additional excise.......................................................................................................................................................103

2.1 On screen “Excise JV- Main Menu”, Select Additional excise..................................................................................103

3.1 On screen “Excise JV- Main Menu”, Select Other adj..............................................................................................107

4. Cancel Excise Invoice.................................................................................................................................................112

4.1 On screen “Excise JV- Main Menu”, Select Cancel Exc.Inv.......................................................................................112

Overview – Extract Excise Registers......................................................................................................................................................1151.1. Access transaction by:.......................................................................................................................................115

1.2. On screen “Excise register extraction: Initial Screen”, enter the below information:.......................................116

Monthly utilization with ADC (test cases on X47/994)..........................................................................................................................121Special Cases –........................................................................................................................................................................................127

Dealer Purchase Cycle –................................................................................................................................................127

Gunny Bags (JMDC).......................................................................................................................................................137

Manual Excise................................................................................................................................................................142

Yokogawa Process.........................................................................................................................................................151

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Business Process in AGROMM module covers AGRO sector of GMR which consist SUGAR Plant, DISTILLERY and CO-gen.

GMR Agro sector is very different from other sectors since Excise Duty is applicable and stored in different registers in order to take the setoff.]

Handling of Excisable and Raw materials:-

Purchase Order is released on the supplier with all terms and conditions. On Goods receipt, the

Stores person will physically verify the goods for quantity, GRN is prepared and excise documents

are sent to respective department. The material is then sent to Quality for approval. If it is accepted, it

is treated as unrestricted stock. Accounts department updates the respective excise registers and

take the MODVAT Credit. Presently RG23A Register is generated in the system. Following are the

examples of Excisable materials

Chemical, Gunny Baggs like Sulphur etc Molasses

For non-excisable sectors like Energy, Property, Roads, they will raise the Purchase Order on

supplier with all terms and conditions. On Goods receipt, the Stores person will physically verify the

goods for quantity, GRN is prepared and the duty subject to excise will be loaded on the inventory

value. Material is then sent to Quality for approval. Intimation is given to the user about material

receipt.

Incase of import Purchase Orders, all terms and conditions like CIF, LC payment etc will be

maintained. Accordingly supplier will dispatch the goods and send the hard copy or soft copy of

document for customs clearance. Based on the receipt of the documents, Customs clearance will be

done and the goods will be sent to plant.

Handling of Asset/Capital goods:-

For procurement of asset item, a Capital Appropriation Request Form is filled and given for approval.

On approval, an asset code is generated which is used for purchase of asset item. On receipt of

asset/capital materials GRN is prepared and user will be intimated for inspection. Once the material is

accepted, entry is made in Excise Register RG23C instead of RG23A and it is capitalized on the

asset.

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As per the Excise regulation, GMR is taking 50% of MODVAT Credit in the year of purchase and

balance in the Next financial year. Presently the RG23C Register is taken through system.

Handling of Return to Vendor:-

Any rejections from Quality / Shop floor rejection, the stores person will prepare Non-Returnable Gate

Pass (NRGP) and send the materials to Vendor.

In case of excisable sector, the Accounts department will reverse the Excise duty captured at the time of Goods receipt. This will update the RG23A/RG23C depends on the type of Material.

In case of non-excisable sectors, plant will identify rejected parts or unused parts to be sent back to

supplier by means of non-returnable gate pass.

In case of return of imported item, packing list will be prepared and sent to respective department.

They will prepare Commercial / Export invoice and send signed copy to plant for movement of goods

from plant to respective supplier destination or Airport for further export.

Handling of Sub-Contracting Process:-

Purchase Order with different document type will be prepared for this kind of scenarios. When a

material is sent to the Vendor for repair/rework etc, it is through Purchase Order/ delivery Challan.

And, on completion of job user will certify that work completed and return with delivery Challan.

Service orders are raised for any services like Civil work, excavating, construction etc. All

specifications of work to be done and Taxes like Service tax etc, will be incorporated in the service

orders. Based on the Work progress, the service provider will provide the bill to the user department.

After the approval the Stores department will send the bill to accounts department for payment. Then

accounts department takes the Credit of Service tax as applicable.

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Handling of Molasses as per the Notification 67/95 (Applicable to Agro sector):-

As per the notification to produce any Excisable product using this molasses there is no need to pay

excise duty. Transfer of Molasses from Sugar unit to the Distillery is done by making an entry in the

RG1 register without paying excise duty as per Notification 67/95. Using this Molasses the Distillery

will produce two products, one is Excisable and other one is Non-Excisable.

Excise duty has to be paid to the Government for the portion of Non-Excisable product produced as

per the Notification act.

Kindly note the current excise duty for Molasses is Rs. 750/- per Ton and for this we are using manual excise in pricing procedure, this is a custom development done in order to capture the Cenvat for Molasses.

Summary of process -Excise process during procurement Process:-

Receipt of Excisable Material eligible for CENVAT credit. Receipt of Capital Goods eligible for taking CENVAT credit.

Excise Periodic Activities:- Update RG1/RG23A Register with Movement types and classification (3 digit code to identify

the excise goods movement). First with Receipt and then with Issues for proper updation of Register.

Extraction and Printing of Excise invoices as and when required.

Excise Debit/Credit Entries:- Excise JVs passed as and when required.

Return to Vendor Process:-

Rejection of Material during in process & receipt inspection

Sub-Contracting Process:-

Issue of excisable components for subcontracting.

Organization Consideration for Excise - Company Code

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Plant Excise Registration Excise Group Series Group

Important point to be considered for Cenvat

Material and Vendor Excise details should be maintained in Material Master Record

Material and Chapter ID combination should be maintained – J1ID

Vendor Excise details should be maintained - J1ID

Plant should be maintained as Excise - J1ID

Tax Code to be maintained from T. Code – FV11

Taxes and Duties will flow from Tax Procedure and Pricing procedure instead of Manual Entry

The Excise invoice will be captured for excisable stock materials with respect to the Purchase order

All excise accounts will get updated based on the Goods movement

Excise Registers will be updated w.r.t to goods movement & values of the excise invoice.

An Outgoing Excise Invoice will be created at the time of returning the Material to Vendor.

Excise JV’’s like Debit entries, Credit entries,TR6C, Challan, Cancellation of Excise Invoice will be created in the system and can be passed by carrying transaction

Excise Registers will be maintained in the system.

Types of Taxes and Duties in GMR Group:-

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Domestic Duties Basic Excise Duty(BED) Special Excise Duty(SED) Education cess on BED Secondary & Higher Education cess on BED (As per Budget 2007-08)

Import Duties Basic Customs Duty (BCD) Counter Vailing duty (CVD) Education Cess on CVD Secondary Education cess on CVD (As per Budget 2007-08) Education cess on all duties Secondary & Higher Education cess on all duties (As per Budget 2007-08) Additional Duty of Customs (ADC) Value Added Tax (VAT) Central Sales Tax (CST) Local Sales Tax ( LST) Service Tax Education cess on Service Tax Secondary & Higher Education cess on Service Tax (As per Budget 2007-08)

Standard DefinitionsElements of Country India Localization:-

Excise Registrations Company Code Plant Excise Groups Series Groups Master Data

Excise Registration:-

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.

Excise Group:-

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

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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.

Series Group:-

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.

Master Data:-

Material master Vendor Master Excise Master

Material Master

The part of the material master record where you record excise information. The excise data is displayed in a separate group box on the Foreign Trade: Import Data and Foreign Trade: Export Data tabs in Material master.

Here you can maintain the data like

Chapter ID for Material Excise Material type Input /Output determination Material subject sub-contract Material Assessable Value

Vendor Master

The part of the Vendor master record where you record information about a Vendor relating to sales tax, excise duty, and withholding tax. When you have entered the Vendor that you want to process, you can access the excise data from every screen, by choosing CIN Details.

Here you can maintain the data like

Excise registration number (and the range, division, and Collectorate in which this is located) Central sales tax (CST) number Local sales tax (LST) registration number Permanent account number (PAN)

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Excise Master

Excise master is a record to maintain all the Excise related data for a longer period. In excise master you can maintain the following data; these data’s will flow to material master / Vendor master also.

Chapter ID Material chapter ID Combination Material Assessable value CENVAT Determination Vendor Excise details Customer Excise details etc,

Procurement Scenarios of GMR Agro -

Excise process for incoming Raw materials (Molasses etc):- Molasses is an intermediate product

The steps involved are

Creation of Goods receipt document against a valid Purchase Order on receipt of a consignment with supporting excise documents. (When excisable goods are procured externally, each delivery will be accompanied by the Vendor’s invoice. This document is mandatory as proof of the excise duty paid. The duty paid can be offset against the excise duty that is levied on outputs. )

The GR will show the excise duty element values at line item level The total values for each excise duty element (BED, AED etc) for all line items for a particular

GR will be available at the header level The values for excise duty elements will be shown as per the details given in PO. While placement of the Purchase Orders the concerned purchasing officer must ensure that

the excisable amount is separated from the basic value of the ordered materials. The Vendors should be discouraged from quoting rates inclusive of all taxes and duties.

If materials are received from dealer or trader then the Vendor must submit dealer invoice clearly mentioning the excisable amount. CENVAT can be claimed based on the dealer invoice.

The excise duty element values if found different in the Vendor invoice, it can be edited at the time of GR.

Capture the excise duty in GR. Immediately on saving the GR, the Part 1 entry will be made in respective registers (RG23A in

case of Raw materials and RG 23C in case of Capital goods. In case of RG23C, 50% for the year of receipt and balance 50% will be on hold for availing next year or after commissioning whichever is later).

The system:

Creates a material document to record the goods receipt. Creates an accounting document to debit the inventory account and credit the GR/IR clearing

account.

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Account Debit Credit

Inventory

GR/IR Clearing Account

10000

10000

The part II (both RG23A and RG23C entries will not be created at this point of time (Two step procedures will be used).

The excise department will scrutinize the excise documents and if found ok will post the Vendor excise invoice in system.

The system automatically debits the excise duty to the excise duty accounts and credits the CENVAT clearing account.


Basic Excise Duty

Special Excise Duty

CENVAT Clearing Account

1600

100

1700

System then creates a Part II entry in register RG 23A or 23C to record this posting The Excise duty amount can be changed before posting Excise invoice. If the excise person

has reduced the amount of excise duty that is to be credited to the CENVAT account, the system adds the difference to the material price.

In case of non availment of Cenvat credit, the system adds the excise duty to material price. The system also creates an accounting document. The document contains debit postings to

clear the clearing accounts for goods receipts and CENVAT; and a credit posting to create an open item on the Vendor's account:


CENVAT Clearing Account

GR/IR Clearing Account

Accounts Payable

1700

10000

11700

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Excise process for incoming Capital goods (Mills, Rollers, and Motors etc):- At the time of creation of Purchase Order for Assets/Capital goods, a tax code will be entered

in the invoice tab at the item level in the Purchase Order screen. The Excise duties and taxes will flow from Pricing Procedure and Tax Procedure based on the

condition records maintained in the system. One can enter this value manually in condition tab in Purchase Order (For Dealers). A Goods Receipt will be carried out in the system with respect to the Purchase Order.

o If the material and the plant are excisable, then the Excise Tab will be activated in the system.

o The processing mode will be “capture excise invoice”. The Vendor excise invoice number will be entered in the system.

o The excise duties will flow from the Purchase Order. o Excise Register RG23C Part I will be updated by the system.

The excise invoice will be posted by the user in the system using separate transaction code in SAP. Excise Register RG23C Part II will be updated by the system. The system will post 50% of the CENVAT in the current year. The balance will be posted to the Cenvat on Hold account. The user will post this balance in the next financial year in SAP.

Once the Excise invoice is posted the financial entries in SAP will be :-

Credit CENVAT Clearing Account

Debit BED Account

Debit ECess Account

Debit SEcess Account

Debit CENVAT On-Hold Account

Receipt of materials –Excise capturing without a reference document:-

This is the scenario which captures an incoming excise invoice if there is no reference document.

A typical scenario is as followed -

Commission a construction company to build a new plant. The company purchases all the materials it needs to build the plant, deals with all of the invoices and most of the other paperwork, with the exception of the incoming excise invoices, which the law requires purchaser to deal with. The subcontractor sends all excise invoices accordingly and the same are captured in the system without any reference documents.

The following will be the steps involved in the process

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Input Excise invoice details and Vendor details

Give Excise group

If the Vendor who sends the excise invoice did not manufacture the goods himself, but obtained them from a different manufacturer, enter the manufacturer in the Ship-from field.

Change the excise range, excise division, and ECC number if they are not correct.

Check the header data.

In case of incomplete or incorrect data, the system displays a list of the errors.

If the entered data is correct, the Excise invoice can be posted.

On the Item tab, enter the following data:

o Material

o Plant

Fill out the Material type, Description, and Chapter ID fields using the information from the material master record

If material master record is not maintained for the material concerned, no information will be displayed, and it has to be entered manually.

Enter the item quantity and change the unit of measure, if necessary

Enter the quantity of goods still available for CENVAT credit

On the Duty values tab, enter the following data:

o Excise base amount

o Excise amounts

After capturing the excise invoice, the data captured can be scrutinized for completeness and subsequently, final posting can be done.

Return to Vendor Process:-Once the goods rejected due to Poor quality, partially rejected, damage, shop floor rejection, the quality person will move the material from Quality stock to the Blocked stock and accepted quantity to Un-Restricted use Stock. Stores person has to check the stock in blocked stock before doing return to Vendor Process.

Materials will be moved from Quality Stock to Blocked stock in the system. This will be carried out in the inspection lot in quality management module of SAP.

A return delivery will be carried out in the system with respect to Goods receipt document. The system will propose the Movement type 122.

The quantity to be sent back to the Vendor will be entered in SAP. The Reason for Rejection like Due to Poor quality/Damages will be entered in the reason for

rejection field at the item level in SAP. The excise duty will be reversed with reference to the return delivery document.

o The transaction in SAP would be “Excise for Other Movement”. o The excise invoice will be generated in the system.

A printout of the Excise invoice will be taken. Once the Excise invoice posted the financial entries in SAP will be :-Debit CENVAT Clearing AccountCredit BED Account

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Credit ECess Account Credit SEcess Account

Sub-Contracting Process:-When working with subcontractors, there are two ways of handling the excise invoice on the goods that you provide them with. They being

Subcontracting without payment of excise duty

Subcontracting under full payment of duty

Subcontracting without payment of excise duty

When materials are issued to a subcontractor, it is required to keep track of the materials issued and the due date of return.

Under excise law 57AC, when one sends materials to a subcontractor for processing, he need not pay any excise duty, even though the materials have left his premises. However, if the materials have not been returned within a given length of time specified by the law (180 days), any excise credit that was posted when the materials concerned were purchased is to be reversed. In the case of materials manufactured in-house, one will have to post credit entries to the extent of the CENVAT rate of the assessable value of the materials.

The process steps involved are

Creation of subcontract order for the goods to subcontract.

Creation of a transfer posting for the materials those are to be sent to the Vendor.

Creation of a subcontracting challan on the basis of the transfer posting material document.

The materials will be sent to the subcontractor, along with a printout of the subcontracting challan. (This challan is the consignment document that will be sent to the subcontractor along with the materials that are to be processed.)

The subcontractor processes the materials and returns the finished goods. When the goods are delivered back, the warehouse person posts the goods receipt and the challan.

The delivery may not necessary cover all the goods from the challan: It may also include goods from a number of different challan.

The excise department reconciles the goods receipt against the challan, thereby accounting for the return of the materials that were sent for subcontracting. (The challan here include those that have been captured online at the time of goods receipt and those entered manually.)

A list of the outstanding challan will be created.

Completion of the challan.

If a subcontractor fails to return all the materials within the time allotted, the material will have to be scrapped by specifying it accordingly in the bill of material for the parent material and then assigning the bill of material to the subcontracting Purchase Order. If the scrap generated is not returned by the subcontractor, excise duty relevant to the scrap generated

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has to be paid. If this scrap is returned after the duty has been paid, an excise journal voucher should be created to reverse the excise duty paid.

Determination of Excise Duty applicable in case of subcontracting

When the materials are sent to a subcontractor for processing, it is to be determined that how much excise duty is applicable. This of course depends on the base value. The different amounts of excise duty (basic excise duty, special excise duty, and additional excise duty) are printed on the subcontracting challan. When a subcontracting challan is created, the system determines the base excise value of each material and the amount of excise due automatically.

When determining the excise duty for materials purchased from third parties, the system uses the excise rate from the latest excise invoice for the material received from the Vendor.

Where materials manufactured in-house are concerned, the System determines the taxable value of the material on the basis of the following information, in this order:

o The latest excise invoice value for the material

o The material's assessable value (that is, the price determined by an external auditor)

o The material’s net dealer price (the material’s list price; the price at which one sells the material to customers)

Reconciliation

Once a subcontractor has processed the materials and returned them, the items in the challan should be matched against those that have been returned. This is the reconciliation process.

After the reconciliation process the challan status will be as followed:

If all of the materials in a challan are accounted for, the system sets its status to Fully Reconciled. In this case, the challan can be completed.

If only some of the materials are accounted for, it sets the status to Assigned. In this case, the remaining quantity of materials must be assigned to another goods receipt later on.

Scrap generated is assigned to a challan only if the percentage component scrap is specified in the bill of material for the parent material and this bill of material is assigned to the subcontracting Purchase Order.

It will be possible to delete wrongly assigned challan

Completion, Reversal, and Re-credit of subcontracting challan

After receipt of the processed material the challan can be closed completely if all the materials send against it are accounted for (The challan status will then be “fully reconciled”).

In case if the allotted number of days (180 days) elapses and the subcontractor fails to return some or any of the materials in the challan (status: Posted or Assigned), the excise duty that was credited to the CENVAT account must be reversed.

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The scrap has to be returned by the subcontractor. If it is not returned, the excise duty amount for the scrap quantity must be reversed. There are two options available.

o If it is confirmed that the subcontractor will not return the material, then the challan can be completed.

o If the subcontractor returns only some of the materials and balance later, Re-crediting the Excise duty on receipt of the balance material is possible.

If a subcontractor returns materials after the due date of return, the excise duty credit that was reversed can be Re-credited.

Subcontracting under full payment of duty

This procedure illustrates how to send materials to subcontractors for processing using normal excise invoices.

The process steps involved are

Creation of a subcontract order for the subcontractor’s services.

Subsequent transfer posting for the materials that to be sent to the subcontractor.

Creation of an outgoing excise invoice.

Sending the materials to the subcontractor, together with the excise invoice.

The subcontractor processes the materials and returns them, together with another excise invoice.

Entering goods receipt against the subcontract order and capturing Excise invoice

Posting of excise invoice

Posting of Subcontractor’s invoice

Posting Subsequent Adjustment :-

If the vendor informs you after goods receipt that a greater or smaller quantity of the components was actually consumed than planned in the purchase order, you must post a subsequent adjustment to correct the goods issue posting

The value of the goods receipt is recalculated to include the subsequent quantity.

Rejection of Excise Invoices:-

In cases when a Vendor invoice is found unacceptable - if it is illegible or some of the required data is missing - excise invoice can still be posted, but a rejection code is assigned to it.

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In case an Excise invoice is only captured, rejection code does not have any effect on the excise invoice other than to flag it as rejected.

Posting with the rejection code gives two options

The System will create a normal CENVAT Document

It can also post the Excise duty to the CENVAT on hold account pending clarification of the invoice.

When system posts the excise invoice as normal, it

Posts the excise duty to the appropriate accounts

Creates the appropriate entries in Part II of register RG 23A or RG 23C

Changes the document status (on the Excise invoice tab) to “Posted” In case of “Hold”

The system creates an accounting document to post the excise to the appropriate accounts, but does not create any entries in Part II of registers RG 23A or RG 23C.

On display the Excise invoice, the document status is “In process” and also there will be a link available to the accounting document

When an excise invoice with CENVAT on hold is rejected, the system creates an accounting document to debit the excise duty to the CENVAT on hold account and credit it to the CENVAT clearing account:


Cenvat On hold Account

Cenvat clearing Account

1700

1700

Posting CENVAT on rejected excise invoices:-

This procedure is used in cases where an excise invoice rejected exists with the CENVAT credit on hold, and later on CENVAT credit is to be taken. The system posts the CENVAT credit as normal & creates the corresponding entries in Part II of the appropriate excise registers

When one posts the CENVAT, the system creates an accounting document to debit the excise duty to the excise duty accounts and credit it to the CENVAT on hold account:


Basic Excise Duty

Special Excise Duty

1000.00

700.00

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Cenvat on hold Account 1700.00

Reversal of CENVAT Postings:-This is the context in which the goods receipt and Excise invoices are already posted and later on the goods receipt is to be reversed. As per excise laws, one is no longer entitled to avail the CENVAT credit.

.

The process flow is as followed

On reversal of the goods receipt process, the system

Creates a reversal document to cancel the goods receipt

Creates additional entries in Part I of the appropriate excise register to reverse the original entries

Changes the excise invoice document status to in process.On reversal of the CENVAT posting on the excise invoice, the system

Creates an accounting document to reverse the CENVAT postings

Creates a corresponding entry in Part II of the appropriate excise registerIn cases where the plant does not allow multiple goods receipts per excise invoice, the excise invoice also must be cancelled.

The system changes the excise invoice status to as cancelled.

If, however, multiple goods receipts per excise invoice are allowed, it does not have to be cancelled. If one wants, he can leave the excise invoice as it stands. Then, during the next delivery of goods for this excise invoice, enter the excise invoice number when the goods receipt is posted.

Handling of Services:-

A service Purchase Requisition will be raised by the user department. (For more details pls. refer to the Business blue print document on P2P process).

A Service Purchase Order will be created w.r.t to the Service Purchase Requisition with all specification of work to be done and Taxes like Service tax, ECess and SEcess on Service tax etc. The Service Taxes will flow from the Tax Procedure

A Service Entry Sheet will be created w.r.t to the Purchase Order. The Service Entry Sheet will be accepted in the system. The Service Tax paid will be available for CENVAT.

Handling of Stock Transfer between Plant to Plant:-

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A Stock Transfer PO will be created by the receiving plant in the system. The Supplying Plant, will be mentioned in the stock transfer order.

Delivery charges, if applicable will be mentioned in the Pricing Procedure in the Purchase Order

An outbound delivery will be created by the supplying plant w.r.t to Stock Transfer PO. A Post Goods Issue (PGI) w.r.t Outbound Delivery Document will be carried out by the

supplying plant. The Stock will reduce in the Supplying plant. The stock will appear in transit in SAP. A Billing document w.r.t to outbound delivery will be created in the system by the supplying

plant. An Excise Invoice w.r.t to Billing document will be generated in the system by the supplying

plant. At the receiving plant, the Goods receipt w.r.t to Outbound Delivery will be carried out in the

system.The excise invoice sent by the supplying plant will be captured in the system. Excise registers will be updated by the system based on the type of Material (Capital/Raw

material)

Handling of Molasses as per the Notification 67/95:-

As per the notification 67/95 to Produce any Excisable product using this Product (molasses) no need to pay excise duty. Transfer of Molasses from Sugar Plant to the Distillery Plant by making an entry in the RG1 Register without paying excise duty as per Notification. Using this Molasses the Distillery will produce two products, one is Excisable and other one is Non-Excisable.

Excise duty has to be paid to the Government for the portion of Non-Excisable product produced as per the Notification act.

Maintain Molasses material code in both Sugar & Distillery plant A Stock Transfer Purchase Order will be created in the system with the sugar plant as the

supplying plant & distillery as receiving plant. The molasses will be maintained as relevant to RG1 register in Sugar plant and as a material

relevant to RG23A for Distillery Plant in Excise Master. The processes as described under “Handling of Stock Transfer between plant to plant” will be

carried in the system. The RG1 Register will be updated in Sugar Plant Excise Register RG23A Part I & II will updated at the distillery plant.

Excise Periodic Activities:-

Update RG1/RG23A Register with Movement types and classification (3 digit code to identify the excise goods movement).First with Receipt and then with Issues for proper updation of Register

The Excise Registers like RG23A/C Part I & II, RG1 etc, will be extracted in the system.

The relevant excise registers RG23A/C Part I & II, RG1 etc, can be down loaded into a format & submitted to the statutory authorities.

Excise Debit/Credit Entries:-

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To take credit Pass Excise JV’s with Additional Excise Mode To make any Debit Entries Pass Excise JV’s with Other Adjustment

For Example : Adjustment posting for Scrap

This process is used when a material is scrapped and the corresponding excise duty debited to the CENVAT account is to be reversed. The steps involved are

Creation of Excise JV for material write off with reference to the material document which was used to scrap the material.

Specify the Excise account affected by the adjustment posting.

The material document information will be displayed.

The posting date and excise duty elements can be edited as per requirement.

Excise duty for each line item can be adjusted as per requirement either manually or by assigning the line item to the excise invoice.

The excise invoice pertaining to a particular item will be selected from the available list of excise invoices for the material concerned for a Vendor.

The system will capture the excise invoice document number in the Ref. doc. field (Reference document).

The excise duty to be reversed will be calculated by the system and apportioned to the material based on the quantity in the relevant excise duty fields

In case if the duty amounts are to be overwritten manually then the excise invoice no. in the reference document should also be over written

The adjustment posting can then be saved after specifying the G/L Account to be posted by choosing Determine G/L accounts

The system will display the amount to be posted and the G/L accounts concerned (Accounts displayed will depend on the excise group and CENVAT account specified).

Adding another account shall be possible

Subsequent adjustments to other postings to match credits and debits will also be possible.

It shall also be possible to capture the business area and cost centre

Verify the balance display of the CENVAT accounts affected by the G/L postings

Condition Types for Excise/VAT and Service Tax

Sl.NlCondition Types Description Type

Set off Excise Duty Conditions1 JMOP IN: BED setoff % Set off Condition2 JMOQ IN: BED setoff Qty Set off Condition

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3 JECP IN:A/P Ecs setoff % Set off Condition4 JSEP IN:A/P SEcs setoff % Set off Condition5 JAOP IN: AED setoff % Set off Condition6 JAOQ IN: AED setoff Qty Set off Condition7 JMX1 IN: A/P BED setoff 100% Set off Condition8 JEX1 IN:A/P Ecs setof Tot 100% Set off Condition9 JHX1 IN:A/P Ecs set of Tot 100% Set off Condition

10 JAX1 IN: A/P AED setoff 100% Set off Condition11 JSX1 IN: A/P SED setoff 100% Set off Condition

Inventrising Excise Duty Conditions1 JMIP IN: BED inventory % Inventrising Conditions2 JMIQ IN: BED inventory Qt Inventrising Conditions3 JECI IN:A/P Ecs Inventor% Inventrising Conditions4 JSEI IN:A/P SEcs Invent% Inventrising Conditions5 JAIP IN AED inventory % Inventrising Conditions6 JSIP IN SED inventory % Inventrising Conditions7 JMX2 IN: A/P BED inventor 100% Inventrising Conditions8 JEX2 IN:A/P Ecs Invent To 100% Inventrising Conditions9 JHX2 IN:A/P SEcs Inv Tot 100% Inventrising Conditions

10 JAX2 IN: A/P AED inventor 100% Inventrising Conditions11 JSX2 IN: A/P SED inventor 100% Inventrising Conditions

VAT/CST Conditions1 JIP1 IN:A/P CST 2 JIP2 IN:A/P LST 3 JIP5 IN:A/P VAT RM Deduct 4 JIP6 IN:A/P VAT RM Non-de 5 JIP7 IN:A/P VAT CG Deduct 6 JIP8 IN:A/P VAT CG Non-de

Service Tax Conditions1 JSRT A/P Service Tax 2 JEC3 A/P ECS for ST 3 JES3 A/P SECS for ST

Procedural Steps for Marinating Master Data

Procedural Steps

Prerequisite

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Via Menus J1ILN >Indirect Taxes > Master Data > J1ID - Excise Rate Maintenance

Via Transaction Code ME21N

a. Maintain Material V/S Chapter ID

b. Maintain CENVAT Determination

c) Maintain Vendor Excise Details

d) Maintain Excise details for Plant

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e) Maintain Excise Indicator for Plant and Vendor

Procedural Steps for Domestic Purchase

Procedural Steps

Prerequisite



1.1. Access transaction by:

Via Menus Logistics > Materials Management > Purchasing > Purchase Order > Create > Vendor/Supplying Plant

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Known


1.2. On screen “Create Purchase Order”, select the document type GDOM Domestic Purchase Order.

Enter the Tax code in Invoice Tab to get the Excise Details as mentioned below

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Click on taxes Button to See the Excise and Tax details

Then Save the Purchase Document

Domestic PO No 4500000209 Created

1.4 Release of Purchase Order

Via Menus Logistics > Materials Management > Purchasing >

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Purchase Order > Create > ReleaseME29N - Individual Release


1.5 Goods Receipt w.r.t to Purchase Order

Via Menus Logistics > Materials Management > Inventory ManagementGoods MovementMIGO - Goods Movement (MIGO)

Via Transaction Code MIGO

A. Then Click on Item OK then only Excise Invoice Tab will open in the Header Screen and Select the Mode of Transaction as Only Capture Excise Invoice

B. Then Enter Excise Invoice Number (Vendor Excise Invoice) and DateC. Check all the Excise Details in Header as well as Item for each line itemD. Check the Excise Group

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Then click on Check button to view the List of Messages if any and then Post the Document

Material Document 5000000313 Posted

1.6 Display the Material Document and Accounting Document (Click on FI Document in the Document Info Tab)

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1.7 Post Excise Invoice: J1ILNIndirect TaxesProcurementExcise InvoiceIncoming Excise InvoiceCentral ProcessingJ1IEX - Capture / Change / Cancel / Display / Posta. Processing Mode: Postb. Reference Document: Vendor Excise Invoicec. Check all the Excise Detailsd. Click on Simulate CENVAT to view the Excise G/L Accounts before Postinge. Post the Document

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Simulation Mode:

After Posting

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System Message: Excise Invoice 0010000088 has been successfully maintained

1.8 Display Excise Invoice DocumentNote: RG23A Part II has been updated

Accounting View

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1.9 Vendor Invoice VerificationLogisticsMaterials ManagementLogistics Invoice VerificationDocument EntryMIRO - Enter Invoice

Simulation Mode:

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Then Post the Document

System message: Document No 5105600287 Created

Accounting Document

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Procedural Steps for Domestic Procurement for Cost Center

1.3. Prerequisite



c. Maintain Plant V/S Chapter ID without Material Master

d. Maintain CENVAT Determination


Via Menus Logistics > Materials Management > Purchasing > Purchase Order > Create > Vendor/Supplying Plant Known


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Domestic PO No 4500000226 Created


Via Menus Logistics > Materials Management > Purchasing > Purchase Order > Create > ReleaseME29N - Individual Release


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E. Then Click on Item OK then only Excise Invoice Tab will open in the Header Screen and Select the Mode of Transaction as Only Capture Excise Invoice

F. Then Enter Excise Invoice Number (Vendor Excise Invoice) and DateG. Check all the Excise Details in Header as well as Item for each line item

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H. Check the Excise Group




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Simulation Mode:

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After Posting



Accounting View of Excise InvoicePage 45 of 159


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Simulation Mode:



Accounting Document

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Procedural Steps for Assets

Procedural Steps

1.5. Prerequisite

e. Maintain Plant V/S Chapter ID without Material Master – T.Code-J1ID

f. Maintain CENVAT Determination – T.Code-J1ID




On screen “Create Purchase Order”, select the document type GDOM Domestic Purchase Order.

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Asset PO No 4500000228 Created




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I. Then Click on Item OK then only Excise Invoice Tab will open in the Header Screen and Select the Mode of Transaction as Only Capture Excise Invoice

J. Then Enter Excise Invoice Number (Vendor Excise Invoice) and DateK. Check all the Excise Details in Header as well as Item for each line itemL. Check the Excise Group

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Note: No Accounting Document has been created because of Asset – GR Non Valuated in Account Assignment Category (A)


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Simulation Mode: For Asset 50% of the Duty values can take Credit this Year and Balance will go to CANVAT On-hold account to take Credit in the Next Financial Year as shown below.

After Posting: After Posting the Excise Invoice RG23C Part II will update automatically and Accounting Document will get update as shown below.

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1.8 Display Excise Invoice DocumentNote: RG23C Part II has been updated

Accounting View of Excise Invoice

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Simulation Mode:

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Accounting Document

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Procedural steps for Excise Imports

Procedural Steps

1.7. Prerequisite

g. Create Custom Vendor with Currency INR

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h. Create Foreign Vendor Master With Currency non INR and Import Schema Group Vendor IS in the Purchasing Data

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i. Maintain Plant V/S Chapter ID without Material Master – T.Code-J1ID

j. Maintain CENVAT Determination – T.Code-J1ID

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k. Maintain Vendor Excise Details – T.Code-J1ID




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On screen “Create Purchase Order”, select the document type GIMP Import Purchase Order.

Enter the Tax code as V0 in Invoice Tab

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Goto Condition Tab in the Purchase Order to Enter the Pricing Conditions and Customs conditions as shown below

JBCD Basic Custom Duty % 12.0 to 15%

JSCD Special Custom Duty

JCV1 IN CVD 16.000 %

JECV ECess on CVD 2.000 %

J1CV SHECess on CVD 1.000 %

JECD ECess on all Duties% 2.000%

JEC1 SECess on all Duty% 1.000%

JADC Add Duty Cust(ADC)% 4.000%

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Note:

1. Assign the Custom Vendor (1000028) to Each Custom Duty Condition by Select each condition and then Click on Condition Details.

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Asset PO No 4600000034 Created




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1.5 Invoice Verification for Custom Vendor

Via Menus Logistics > Materials Management > Logistics Invoice Verification Document EntryMIRO - Enter Invoice


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M. Select the Processing Mode as Planned Delivery CostN. Enter the Currency as INR for Custom Vendor to Pay the Duty in Local CurrencyO. Enter the Planned Delivery Manually by copying the Values from Line itemP. Then enter the Balance Value in the Amount Field and then Click on SIMULATE and POST

Simulate Mode:

System Mesg: Document No 5105600294 Created

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Accounting Document View:




a. Select: Goods Receipt- Purchase Orderb. Enter the Purchase Order and Press Enterc. System by default shows the Commercial Invoice Number as shown below to carry the Bill of

Entry Details

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A. Then Click on Item OK then only Excise Invoice Tab will open in the Header Screen and Select the Mode of Transaction as Only Capture Excise Invoice

B. Then Enter Excise Invoice Number (Vendor Excise Invoice) and DateC. Check all the Excise Details in Header as well as Item for each line itemD. Check the Excise Group

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GR - Accounting View

1.7 Post Excise Invoice: J1ILNIndirect TaxesProcurementExcise InvoiceIncoming Excise InvoiceCentral ProcessingJ1IEX - Capture / Change / Cancel / Display / Posta. Processing Mode: Postb. Reference Document: Vendor Excise Invoicec. Check all the Excise Details like BED (CVD), AED (ADC), Ecs on CVD and SEcs on CVDd. Click on Simulate CENVAT to view the Excise G/L Accounts before Postinge. Post the Document

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Simulation Mode:

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After Posting of Excise Invoice



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Accounting View of Excise Invoice

1.9 Vendor Invoice Verification for Foreign VendorLogisticsMaterials ManagementLogistics Invoice VerificationDocument EntryMIRO - Enter Invoice

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Simulation Mode:



Accounting Document

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Procedural Steps for Sub-contracting Purchase Order Cycle

Business Process Procedure OverviewA Sub-contracting Purchase Order is a Legal Document. This scenario will come to picture while sending any components for Repair or any modification work.

Input - Required Fields

Field Value / Comments

Vendor Vendor numberPurchasing Organization

Purchasing Organization code

Purchasing Group Purchasing Group codeCompany Code Company codePR number Reference Purchasing Requisition numberNet price Price of service activity

Output - Results CommentsCreated Sub-Con PO, Transfer Posting, Sub-Con Challan, Goods Receipt, Challan Reconcile and Vendor Invoice Verification

Procedural Steps

1.9. Prerequisite

Maintain Material V/S Chapter ID – T.Code-J1ID

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1.10. Maintain Bill of Material(BOM) for end Product (S30SUGAR)

Via Menus Logistics > Production > Master Data > Bills of Material > Material BOM > CS01 - Create

Via Transaction Code CS01

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On screen “Create Sub-Contracting Purchase Order”, select the document type GDOM Domestic Purchase Order.

a. With Item Category ‘L’

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Click on Components in the Item Material Tab to View the List of BOM Components as shown below

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Sub-Contracting PO No 4500000251 Created

1.4 Release of Sub-Con Purchase Order



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Then Release the Document and Save

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1.5 Transfer Posting w.r.t to Sub-Con Purchase Order

Via Menus Logistics > Materials Management > Inventory ManagementGoods MovementMB1B - Transfer Posting

Via Transaction Code MB1B

Step :-

a. Movement type:541b. Refer Purchase Order to adopt the Details

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Then Click on Purchase Order to Enter the PO Number

Then Click on Adopt + Details

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System Message: Document No: 4900000311 Posted

Note: No Accounting Document will Generate for Transfer Posting

1.6 Create Sub-Contracting Challan w.r.t to Transfer Posting Document

Via Menus J1ILN > Indirect Taxes > Procurement Subcontracting Subcontracting ChallanJ1IF01 - Create

Via Transaction Code J1IF01

Step:-

a. Enter Transfer Posting Document Numberb. Enter Excise Groupc. Enter Series Group

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Then Save the Sub-Contracting Challan

System Message: Sub-Contracting Challan 0000000017 to 0000000019 for Year 2007 and Series Group SS1 Created

1.8 Print Sub-Contracting Challan

Via Menus J1ILN > Indirect Taxes > Procurement Subcontracting Subcontracting ChallanJ1IF01 - Create


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While Creating the Sub-Con Challan Click on Print Immediately Check box and Save the Document System will print the Document Automatically




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Click on Item OK to Open the Excise Invoice Tab and Select the Refer Sub-Contracting Challan and Click on More Data(Pencil Indicator) to Enter the Challan details

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Note:- Movement type would be 101 and 543 O




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2.1 Quantity Reconciliation of Sub-Con Challan

Via Menus J1ILN > Indirect Taxes > Procurement Subcontracting Subcontracting ChallanJ1IFQ- Quantity Reconcilation

Via Transaction Code J1IFQ

Then Click on Reconcile Button and Press Enter the Following Screen will appear

1. Click on Allocated based on FIFO (Calculator Button) it will fills the Assigned Quantity as shown below

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Then Save the Document

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2.2 Challan Complete

Via Menus J1ILN > Indirect Taxes > Procurement Subcontracting Subcontracting ChallanJ1IF13 - Complete/ Reverse/ Recredit



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Simulation Mode:



Accounting Document

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Overview of RG1 Register – Update

RG1 register maintained at Manufacturing Plants for excisable finished goods. The register shows goods movements from the factory to a store and stores to customer, specifically for excisable finished goods. The R/3 System generates all the necessary entries in the register.

This report only creates register entries for goods movements that have not already been entered. It does not create duplicate entries.

Business Process Description OverviewThis process describes the method to update RG1 register

Input - Required Fields Field Value/CommentsCompany Code Company codePlant PlantExcise Group Excise GroupMovement Type Relevant movement types for RG1 updationStorage location Storage locationClassification Relevant Classification for receipts and issues

Output - Results CommentsUpdation of RG1 Register

Tips and Tricks - Depending on the Classification chosen different movement types are to be entered. Always update receipts first then issues.

Procedural Steps


Via Menus CIN Menu -> Indirect taxes -> Registers -> Excise Tax -> Update Rg23 A/C issues and RG1

Via Transaction Code J1I5

1.2. On screen “Update of Registers RG1 and RG 23(Part1) : Initial Screen”, enter the below information:

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Field Name

Description R/O/C

User Action and Values Comments

Company Code

Company Code R

Plant Plant – for which RG1 Register is being maintained

R

Excise Group

Excise Group for which RG1 register is being maintained

R

Material Document Number

Material document number

O Based on the updation criteria enter

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values

Document Year

Material document year O Material document year

Posting Date

Date of Material document Posted

R Enter the Material Document Posting Date

Movement Type

Movement Type used for posting the materials

O

Storage Location

Storage location used for posting the material movements

O

Material Material number to update the RG1 Register

O

Document Date

Document date of the material document

O

Batch Batch number of the materials

O

Stock Type

Stock Type declared O

Rule Excise Classification Rule

O

Classification

Pre-defined Classifications

R IIM

For updation of goods receipts from Manufacturing plant use RMA

For updation of Goods issue, i.e. Removal from factory on payment of duty for home use – IDH

ReceiptsRMA- Receipt from manufacture

ROP-Receipt from outside under any other provision

Issues

IDH-Removal from factory on payment of duty for Home use

IDE-Removal on payment of duty for

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export under no bond

IWE-Removal without payment of duty for export under bond

IWT-Removal without payment of duty for transfers

IWO-Removal without payment of duty for other purpose

RG23/ RG1

RG23 / RG1 updation date

R Select the appropriate radio button to update the RG1 Register. Please select the document entry date radio button

Date to be considered by the system for updation of RG1 Register

Document Entry date

Document posting date

System date

Registers Register to update R Select the RG23A radio button to update the RG1 Register,

By using this Transaction you can update the following Registers

RG23A Part1

RG23C Pat1

RG1

Press enter and ignore any messages.

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The following Classification codes need to be used while updating the Excise Registers:

Register Type Goods issues Goods receipts

RG 23A IIM ROP

IPD

IWD

RG23C IIM ROP

IPD

IWD

RG1 IDH RMA

IDE ROP

IWE

IWT

IWO

System will display the ‘Update of Registers RG1 and RG23 (Part1’) screen:

Displays all the line items to meet the selection criteria to update the RG1 Register

Select the line items which needs to be updated to RG1 Register by selecting the check box at the beginning of the each line item

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Simulate the selection by using the Simulate function or use Shift+F10 to simulate the selection

System will display the selection Green or Red Traffic lights. The line items which can be updated will be displayed with Green Traffic Lights and the line items which can not be updated will be displayed with Red Traffic Lights.

After selecting the right documents select the line item and use the Create button to update the RG1 Register or use CTRL+Shit+F11 to make register entry.

Result :

Overview – Excise JVs

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Entering excise JVs in the system to make cenvat adjustments.

Business Process Description OverviewThis process describes the method to Enter excise JVs in the system to make

cenvat adjustments.

Tips and Tricks

Depending on the different Scenarios need to enter different JVs in the system

Procedural Steps

Access transaction by:

Via Menus CIN Menu -> Indirect taxes -> Registers -> Excise JV-> Create

Via Transaction Code J1IH

1. Material Write off

1.1 On screen “Excise JV- Main Menu”, Select Matl Write off

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Field Name

Description R/O/C


Document Number

Enter material document number

R Enter material document number

Enter the number of the document that is used to scrap the material.Movement tye 551

Document Year

Enter document year R Enter document year

Company code

Enter company code R Enter company code

Plant Enter plant R Enter PlantExcise Group

Enter Excise Group R Enter Excise Group

Modvat account selection

Select the modvat account

R Select the modvat account

Specify which account is affected by the adjustment

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posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment.

Press enter Button

Select Excise invoice to refer or enter quantity and duty values

Click On Determine G/L accounts

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Click On Returns to Detail screen

Save

Result

2. Additional excise

2.1 On screen “Excise JV- Main Menu”, Select Additional excise

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Field Name

Description R/O/C


Document Number

Enter material document number

R Enter material document number

Document Year


Company code







Specify which account is affected by the adjustment posting is for.

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Press enter Button

Click on Details button

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Enter information as in the tableField Name

Description R/O/C


Material Enter material code R Enter material code

Quantity Enter Quantity R Enter QuantityBED Enter BED amount R Enter BED amountEcess Enter Ecess amount R Enter Ecess amountSECess Enter SECess amount R Enter SECess amount

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Save

Result

3. Other adjustment

3.1 On screen “Excise JV- Main Menu”, Select Other adj.

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Field Name

Description R/O/C


Document Number

Enter document number R Enter l document number Enter the number of theExternal document that is refered to.

Document Year


Company code







Specify which account is affected by the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment.

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Press enter Button

Click on Details button

Enter information as in the tableField Name

Description R/O/C


Material Enter material code R Enter material code

Quantity Enter Quantity R Enter Quantity

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BED Enter BED amount R Enter BED amountEcess Enter Ecess amount R Enter Ecess amountSECess Enter SECess amount R Enter SECess amount


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Save

Result

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4. Cancel Excise Invoice

4.1 On screen “Excise JV- Main Menu”, Select Cancel Exc.Inv.

Field Name

Description R/O/C


Document Number

Enter document number R Enter document number Enteroutgoing excise invoice to be cancelled

Document Year


Series Group

Enter Series Group R Enter Series group to which excise invoice refers

Press enter Button

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Confirm the message

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Save

Result

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Overview – Extract Excise Registers

This step need to be performed in order to create the RG1/RG23 (A/C/D),PLA details into the respective tables ..

Business Process Description OverviewThis process describes the method to Extract the registers.

Input - Required Fields Field Value/CommentsExcise GroupStart DateEnd DateRegister

Output - Results CommentsCreation of condition record

You have to complete the update of RG1 Register before performing this step for RG1 register.

Procedural Steps


Via Menus Country India User Menu Indirect Taxes Registers Excise Tax Extract

Via Transaction Code J2I5

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1.2. On screen “Excise register extraction: Initial Screen”, enter the below information:

Field Name

Description R/O/C User Action and Values

Comments

Excise Group

Excise group for which Register being generated

R Enter excise Group

State Date

Starting date of Extraction R Starting date of data to be extracted for registers

End Date Ending date of Extraction R Ending date of data to be extracted for registers

Selection Registers

Mass extraction of data to all registers

R Select the radio button Select Any Register option

User can generate all the registers together or individual register wise

Select individual Registers

Selection of individual register

R Select individual register

Display Last Extracted dates

Displays the previously upto what date the register has been extracted for information

O

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Click on execute icon or Press F8 or Program Execute

If the Register is being generated for the Period First Time, system will execute the report and display the pop-screen with Register name and Green Tick mark, if it is successfully extracted, otherwise it will show the Red Cross.

Result : Register (Eg:RG1) data has been extracted

Print Register - This process is used to print the RG1 Register or to display on the screen

Access the transaction choosing one of the following navigation options:

SAP R/3 menu Country India User Menu Indirect Taxes Registers Excise Tax Print Utility program

Transaction code J2I6

Tips and Tricks

The data must be extracted to the respective Register for the period to which Register need to be printed

On the Print Excise Registers screen, select the Radio button to print the respective Register.

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Click on Execute icon or Press F8 or Program Execute

On the Print Register screen, make the following entries:

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Field name

Description R/O/C User action and values

Comment

Excise Group

Excise group for which RG1 Register is being generated

R Enter the Excise Group Enter the Excise Group

Start Date Starting date of the period for which currently RG1Register is being generated

R Enter Starting Date Starting Date

End Date Ending date of the period for which currently RG1Register is being generated

R Enter Ending Date Ending Date

Form Selection

Select Script form or excel form

R Select excel form to download to desktop

Click on Execute icon or Press F8 or Program Execute

Specify the File Path

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Open the stored excel file in the templates given for each register and run macros.

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Monthly utilization with ADC (test cases on X47/994)

Transaction Code used J2IUN

Note : Monthly utilization is to be done company code wise in SAP.

1 Enter the plants relevant for the company code in the excise group

2 Enter IP if you require the system to display the ADC (additional duty of customs) balance during monthly payment.

If this is not entered the system will display the balances of RG23ABED,

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9

345

8

1

2

6

10

RG23CBED and PLA.

If this is entered the system will display the balances of RG23ABED, RG23CBED , PLA, RG23AADC, RG23CADC.

3 Enter the period for which the monthly utilization is being done

4 Enter any specific invoice number for which you desire to make the monthly payment

5 Enter the business area for the excise group

Description Business area

6 If this pushbutton is clicked after entering all the details, the last date of monthly utilization will be displayed.

7 If this pushbutton is clicked after entering all the details, the system will list the invoices that are pending for monthly utilization for the period entered above.

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8 There are two radio buttons :

- Payment of Monthly utilization using the Service tax balances.

- Payment of Service tax using the Cenvat balances

When the first option is desired, then the user has to enter the service tax GL account number and the Service tax Edu cess GL account number in the block 9 .

When the second option is desired, then the user has to enter the service tax GL account number and the Service tax Edu cess GL account number in the block 10 .

9 The GL account for service tax and the GL acct number for the Edu cess on service tax is to be entered if it is desired to utilize the service tax balances for the monthly utilization.

Service tax input – 1561501121

Ecess on service tax input - 1561501191

10 The GL account for service tax payable and the GL acct number for the Edu cess on service tax payable is to be entered if it is desired to utilize the cenvat balances for the service tax payment.

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Service tax payable – 1861501131

Ecess on service tax payable - 1861501181

Duty payment

User has to enter the duty values against the various accounts ( RG23A / RG23C / PLA )

The traffic light turns green when the total payable is entered correctly by the user.

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These are the ADC balances available for utilisation

Traffic light

Ecess payment

After the values are entered the document is to be saved .

The register entries are created in the background.

Accounting document

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Special Cases –

i. Dealer Purchase Cycle ii. Jmdc exciseiii. Manual exciseiv. Yakogowa

Dealer Purchase Cycle –

1) When Creating Purchase Order if you are not aware what (percent of ED ) taxes will be applicable, then you can use this process to capture the excise duty, and can utilize this values for getting your MODVAT claims.

Dealer Invoice: - Step to be followed

1. ME21N PO creation [select Tax code which is not includes ED components2. J1IEX –Capture excise invoice [Tick MRP indicatore in Miscellaneous Tab]3. MIGO- Goods receipt and Refer the Captured excise invoice4. J1IEX-Post the captured excise invoice5. MIRO- Invoice verification process [Change the amount +select required Taxcode with ED

components] post the document

Detail Description of the steps:-

T-code: ME21N select required material / vendor /org elements (Pur org,company code/purgroup] Then Go to Item detail Item details and select Condition tab

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Select Tax codes which are having only VAT/CST components Don’t Select Any Tax codes which arehaving Excise components[ED+Ecess+SHEcess].In the Example we have 4% VAT which ison the total amount which includes Excise duties.

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Then save your Purchase order and Release your Purchase Order.

Note: We need to capture Excise manually without fail before doing -MIGO[Goods Reciept]T-code: J1IEX

Give Excise(Vendor) Number &Date.We can see because there is no ED components in PO so we getBED/ECS/Scess as Blank and Exc base it will take PO value which isinclusive of ED/ECS/SHEces.

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Go to miscellaneous tab and tick the MRP indicator

Manually we need to change the Exc base value after deducting BED+ECS+SHecess value fromPO Value (Base value which includes Ed components]

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After entering these values manually we can see in header all the duty values, check and save the document.

Then we need to do the GR for this PO, MIGO - We need to select only refer Excise Invoice

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And select the Excise invoice number and Excise inv date which is capturedAll the value will flow from excise invoice captured as shown above.

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Check and Post the document then go to Display mode and see the AccountingDocument which shows only Material value excluding all Excise duties.

Then Go to –J1IEX and post the referred Excise invoice, Simulate it and post it

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Go to –T. Code: MIROSelect the required Purchase order and enter we get all the values from Purchaseorder.

Note: Here we need to change Manually Amount, Tax code to get the required result.

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Change the TAXCODE = ED14%+ECS2%+SEcs1%+VAT 4% =M1 to get the required, results as shown below.

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Simulate the result then we get the details as shown below

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Gunny Bags (JMDC)

Tax Code – J1,

There will be certain taxes where you will not be considering ED for MODVAT but you need to capture the Cess and H.Cess only, for availing MODVAT, in such cases you will be using this tax code J1.

Currently this we are using for Gunny Bags.

JECP - IN:A/P Ecs setoff %

JSEP - IN:A/P SEcs setoff %

JVRD - A/P VAT RM Deductible

The above three condition types will not be inventorised.

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Please refer to the below invoice which is self explanatory.

-

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Procedure is follows –

1) Create PO with ME21N2) Use the Tax Code – J1 in Invoice tab, except JCSS & JJX3 condition type rest will

be inventorised. 3) Save and Release the PO4) Goods receipt – Capture the Excise Invoice5) Post the Excise Invoice 6) Invoice verification

Create PO

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Give the Tax Code as J1 and click on taxes to see the tax calculation

Save and release the PO

Then do the GR against the Purchase Order No and check the FI entries.

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Post the Invoice with T.Code with MIRO and check the accounting entry

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Manual Excise

This is a custom development for GMR Agro sector since it was required to capture amount for MODVAT basically for Molasses

Generally the ED for Molasses is Rs. 750/- per ton, standard SAP can not perform this transaction so this is a custom development to capture ED for getting the setoff.

Process flow is as follows- Procedure for Manual excise .

1.PO Creation .(me21n)

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Enter ed value manually.

Observe the tax calculations.

Basic prize 100/-

Manual ed - 30/-

Ecs 2% on 30 – 0.60

Secess 1% 30 – 0.30

Total value for vat - 130.90/-

Vat 4 % - 5.24

Taxes values -36.14/-

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Goods Receipt - MIGO transaction

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Observe the tax values.

J1IEX TRANSACTION (modvat credit)

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Accounting document.

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Invoice Verification - MIRO transaction

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Observe the values. And Save the document.

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Yokogawa ProcessThere was a certain case where you can take a where you can get a set off for 2% Cess on CVD, to Map this process there was a custom development, given below the example will illustrate the necessity to go for this custom development .

Example only

Basic Price 100

CVD 16% 16

Additional Duty 4% 4

Cess 2% on CVD 0.32

Addl Cess 1% on CVD 0.16

Total 120.48

CST 3% against form-c 3.6144

Grand Total of P.O. value 124.0944

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The process for this special case is as follows -

Scenario of Local vendor passing CVD and ADC Charges.

1.Create po –me21n.

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Enter cvd and additional duty charges price in manually

Jexc and zadc condition as showne.use tax code J2

2.TAX Calculation.

Observe the tax amounts and cst calculation.

Bed amount is equals to cvd 2730/-

Additiona l duty charges 798/-

3.Migo transaction.

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Observe the tax values.

AED field is additional charges.

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4.J1IEX TRANSACTION TO AVAIL CREDIT.

IMPORTANT

MANUALLY ENTER IP AS SHWONE.

Whenever local vendor passing CVD AND ADC DUTIES we need maintain IP as Sub transaction type.

Simulate cenvat posting

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Post the document.

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5.Miro transaction

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SIMULATE

OBSERVE THE CENVAT CLEARING ACCOUNT.

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