66141293 sap-sd-cin

India SAP CoE, Slide 1

SD2018 - SD CIN (Country Version India) v1.0

SD CIN (Country India Version) SD CIN (Country India Version)


SD CIN (Country Version India)

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Purpose

CIN as the term denotes means Country Version India. It comprises of functionalities designed for the laws and business practices pertaining to the country, over and above the generic SAP system functionalities.

It contains India Specific functions, mainly related to Financials and Logistics. The main areas are as follows:

– Excise duty and the central value-added tax system (CENVAT) The tax levied on the difference the output and the input value. This is also referred as MODVAT. Manufacturer can setoff the excise duty paid on their inputs materials against their output duty. – Withholding tax (also known as tax deducted at source)– Sales tax – Maintenance and printing of statutory excise registers


UseCountry Version India comes ready configured with all the settings, Sales processing CIN covers the following Indian statutory requirements.

1. Calculation of Excise duty based on Material and Chapter ID combination 2. Calculation of Excise bases on concessional forms3. Calculation of Output Tax based on Interstate Transactions4. Maintenance and printing of Excise / Sales Tax details of customer on Invoices5. Usage of Pre-printed Invoice Numbers6. Excise Invoice Number should start with No.1 for every government fiscal year in Depot7. Maintenance of RG23D register in Depots8. Reproduction of all Excise details on depot Invoices with respect to source document9. Maintaining separate Folio number for all incoming material in Depot10. Maintain Entry number for each Folio for outgoing material in Depot11. Levy of service tax on all services rendered from Factory / Depot12. Payment of Cess on certain category of Material if applicable13. Maintenance of excise rules.

The customer and vendor masters have been enhanced to store taxation details specifically for India.

It provides predefined sample pricing procedures, including all taxes, andsettings for automatic account determination to the appropriate Excise Accounts .


Challenges

1. Tax structure for same material varies as state changes

2. Excise rate is different for different products

3. Printouts / forms need to develop as per laws


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Most of the country-specific functions for India relate to Financials and Logistics to meet Statutory requirements such as The main areas are as follows:

Financial Accounting• The country template for India comes with its own chart of accounts, CAIN. It contains all accounts common to most businesses in India. It also takes into account the requirements of Schedule VI of the Companies Act 1956. • The country template also contains settings for automatic accounting postings• The country template for India comes with its own financial statement version, BAIN.

Material managementA business document, in India, that your vendor sends you when it delivers excisable goods. It lists the goods and states how much excise duty applies on them. Your use the excise invoice to claim back the excise that you have paid from the excise authorities.

Sales & distribution Country Version India comes with four pricing procedures as follows: 1) JINFAC (Sales from manufacturing plants) 2) JINEXP (Export sales) 3) JINDEP (Sales from depots) 4) JINSTK (Stock transfers)


Excise Duty

The system covers all types of excise duty, all of which need to be calculated andreported separately:

1. Basic excise duty (BED)2. Special excise duty (SED)3. Additional excise duty (AED)4. National contingent calamity duty (NCCD)5. Cess

The system of excise duties is complex, and differs from the generic functions for taxes onsales and purchases in a number of ways: The rate of duty on a single material can vary according to which chapter ID it is listed

under. You cannot offset all excise duty on inputs against outputs. Depots cannot offset any input duties at all. Manufacturing plants can only offset input

duties if they can show that the input materials are used to produce output materials. You have to record all excise duty (inputs and outputs) in excise registers. Your company may only be entitled to offset a portion of the duty on inputs against duty on

outputs. Companies that qualify as small-scale industries can levy excise duty on outputs at reduced

rates, so if you purchase materials from these companies, you must calculate a different rate of excise duty.


Sales Tax

This is a tax levied on the sale of a product. It is applied on the gross price of goods, inclusive of excise duty.

There are two types of sales tax. 1) Interstate sales (for example, between Karnataka and Tamil Nadu) are subject to

central sales tax (CST). The tax rate is the same throughout the country. Intrastate sales,

2) On the other hand, are subject to local sales tax (LST), which differ from state to state. SAP R/3 handles these using tax jurisdiction codes.

A percentage of input LST can be deducted against output LST, depending on what percentage of goods you have purchased in the state in question.

The system calculates the sales taxes automatically, when you enter the tax codes. A report is also available that tells you how much sales tax you have paid and collected.



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CIN Customizing

Agenda

Global Settings

Accounting

Sales and Distribution

Reports


CIN Customizing

Agenda

Global Settings


Maintain Company Code

Menu Path

IMG Logistic - General Tax on Goods Movements India Basic Settings Maintain Company Code Settings


Maintain Excise Registrations

Menu Path

IMG Logistic - General Tax on Goods Movements India Basic Settings Maintain Excise Registrations

An entity in India that is entitled by law to produce any goods liable to excise is assigned its own excise registration number. The excise registration reports to the excise authorities.


Maintain Plant

Menu Path

IMG Logistic - General Tax on Goods Movements India Basic Settings Maintain Plant Settings


Maintain Excise Groups

Menu Path

IMG Logistic - General Tax on Goods Movements India Basic Settings Maintain Excise Groups

An unit within an excise registration in India, which keeps its own set of excise records. The excise group is purely an internal organizational unit. Each excise group keeps records of all the transactions that have to be reported to the excise authorities.

When the time comes to present these records to the authorities, the excise registration compiles the information from all of its excise groups.


Maintain Series Groups

Series groups help in maintaining multiple number ranges for the outgoing excise documents. Based on excise regulations and exemptions from the excise authorities, multiple number series can be maintained for the outgoing documents, but each of these series have to be declared to the excise authorities.

Menu Path

IMG Logistic - General Tax on Goods Movements India Basic Settings Maintain Series Groups


Maintain Excise defaults

In this customizing settings, we define which tax procedure and pricing condition types are used in calculating excise taxes

Menu Path

IMG Logistic - General Tax on Goods Movements India Basic Settings Determination of Excise Duty Maintain Excise Defaults


Tax Indicator Maintenance

Menu Path

IMG Logistic - General Tax on Goods Movements India Basic Settings Maintain Excise Duty Indicators


CIN Customizing

Agenda

Accounting


Define G/L Account for Taxes

Menu Path

IMG Logistic - General Tax on Goods Movements India Account Determination Define G/L Accounts for Taxes


Maintain Transaction Accounts

Menu Path

IMG Logistic - General Tax on Goods Movements India Account Determination Specify Excise Accounts per Excise Transaction

In this settings, we define which excise accounts (for excise duty and CENVAT) are to be posted for the various transaction types


Assign G/L Accounts

Menu Path

IMG Logistic - General Tax on Goods Movements India Account Determination Specify G/L Accounts per Excise Transaction

In this IMG activity, we assign the excise and CENVAT accounts to G/L accounts. This is maintained for a combination of Excise Group, Company Code and Chart of Accounts


Maintain Minimum Balances

Menu Path

IMG Logistic - General Tax on Goods Movements India Business Transactions Utilization Maintain Minimum Balances for Excise Accounts

In customization over here, we maintain minimum balances in company excise accounts. When the balances in these accounts, during utilization falls below the level, the system automatically utilizes funds in the PLA account.


CIN Customizing

Agenda

Sales and Distribution


Assign Excise Invoice …..

Menu Path

IMG Logistic - General Tax on Goods Movements India Business Transactions Outgoing Excise Invoices Assign Billing Types to Delivery Types

Invoices are created by referring to either Proforma Excise Invoices or Customer Invoices. Hence in this IMG activity, you specify which Billing document types you use as a reference for CENVAT utilization, and assign them to the appropriate Delivery Types.


Utilization Determination

Menu Path

IMG Logistic - General Tax on Goods Movements India Business Transactions Utilization Utilization Determination

In this IMG activity, We specify which CENVAT accounts are to be debited by the Fortnight Utilization of CENVAT. Here it is specified as to which CENVAT account the duty must be debited to by default.


Maintain Default……

Menu Path

IMG Logistic - General Tax on Goods Movements India Business Transactions Outgoing Excise Invoices Maintain Default Excise Groups and Series Groups

We can specify which excise group and series group, we want to appear by default for different combinations of Sales Organization, Distribution Channel, Division and Shipping Point. This activity is optional unless we require the system to automatically create excise invoices when we create a customer invoice.


Tax Determination – Long Texts

Menu Path

IMG Logistic - General Tax on Goods Movements India Tools Long Texts

This customization controls the different types of long texts that caompany want to be able to maintain in various excise transactions.


Number Ranges

Menu Path

IMG Logistic - General Tax on Goods Movements India Tools Number Ranges

Maintenance of number range for all CIN objects


CIN Customizing

Agenda

Reports


Maintain SAP Script Layout

Menu Path

IMG Logistic - General Tax on Goods Movements India Business Transactions Excise Registers Specify SAPscript Forms

In this IMG activity, for each company code, we can specify which SAP Script forms the system prints the excise registers with.


CIN Master Records

Agenda

Master Records


Excise Master1. Maintain Chapter IDAll the materials that are required for manufacturing and subsequently those which are manufactured are classified under the Central Excise Law into chapters. These chapters are further subdivided into headings and subheadings, which together form the chapter ID.

T Code : J1ID


2. Material Chapter ID combination

•If it is a input material then select the tab Raw material. If it is capital item then select Assets. If it is a in-house produced material then select RG1.• Select GR –X ref to specify whether credit is allowed only for single goods receipt or multiple goods receipt with single credit or multiple goods receipt with multiple credits.• In the declared column enter X if the material is declared to excise. Also enter the date of declaration.

Excise Master


3. Material Assessable valueIn 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.

Excise Master


4 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 indicator is marked for such material.

Excise Master


5 Customer Excise detailsIn this section the Customer excise details are maintained.

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

The Customer excise details appropriate excise indicator should be selected from the drop down menu of tab. In the type of Customer you have to select appropriate tab i.e. manufacturer, or First stage dealer, Exporter, etc.

Excise Master


6 Excise Indicator for Plant

Excise Master


7 Excise Indicator for Plant and Customer

In this section the combination of excise indicator of plant and excise indictor will determine excise duty applicable

Excise Master


8 Excise tax rateIn 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 dutyThis indicator and chapter ID combination determines the excise duty for the material.

Excise Master


CIN Transactions

Agenda

Transactions


Creation of Excise Invoice for factory sale

Purpose • This transaction is used for creating excise invoice with reference to a billing

document.

Prerequisites• The excise invoice has to be created with reference to a billing document • The billing document has to be released to FI• The posting date of the billing document

Menu Path• Transaction J1IIN: SAP India Localization Menu• Indirect Taxes -> Sales/Outbound movements -> Excise Invoice -> Outgoing excise

create/change/display

Transaction Code • J1IIN

SD CIN - TRANSACTIONS


Use transaction J1IIN – Create /Change/ Display Excise Invoice


Enter the billing document number and posting date and press Enter

Billing document number

Click on From Billing to create an Excise invoice with reference to a billing document

Posting Date


• Enter the excise group and series group • Save the excise invoice

Excise group Series Group


T Code J1IIN


Excise invoice Cancellation Purpose

• Cancellation of outgoing Excise invoice.

Prerequisites

• Excise Document number• Excise series group• Document year

Transaction Code

• J1IH



Execute J1IH – Cancel Excise Invoice


Enter Excise invoice number, Document year and series group

Enter document number, Document year and Excise series group


Following screen will appear, click on to enter


Following screen will appear, click on to confirm the G/L accounts to be posted.

Click on after checking the G/L accounts and save the document using CTRL + S


Depot excise invoice capture

Purpose Capturing Mother Excise invoice at depot.

Prerequisites• Material Document number• Depot Excise group• Factory Excise series group• Document year• Ship from

Transaction Code J1IG



• Execute transaction J1IG to capture Mother Excise invoice


• Enter Depot Excise group and Material Document number and press Enter


• Following Screen will appear, Enter Ship From, Factory invoice number and Factory Excise series group, tick on own factory



Click on details button to go into item details, check the quantity and excise duty and save the invoice



Outgoing Depot excise invoice Purpose • Excise invoices for delivery at depot

Prerequisites• Delivery number• Depot Excise group• Depot series group

Transaction Code J1IJ



Execute J1IJ transaction to get following screen


Enter Delivery number, excise group and series group


Enter into the details screen as shown below


Click on the invoice button to select the mother invoices for reference


Select the mother invoice to be referenced and click on the continue button



Check the referenced quantity and excise duty values and go back to the overview screen



Save the depot excise invoice


Note down the Depot excise invoice number as displayed


Purpose • This transaction is used for creating Letter of undertaking.

Prerequisites• Letter of undertaking to be given to local excise range and the number for the

letter of undertaking to be obtained.

Menu Path• Transaction J1ILN: SAP India Localization Menu

Indirect Taxes -> Master data -> Excise Invoice -> Excise Bond

Transaction Code • J1IBN01 - Create

Process Name: Creation of Excise Letter of under taking for export factory sale

SD CIN - TRANSACTIONSCreation of Excise Bond (Letter of under taking)


Use transaction J1IBNSave the Excise Bond using Ctrl + S Note down the Excise bond number

Enter Plant code

Bond type: Letter of undertaking

Number for LOU as provided by excise range

Enter Bond Value

Enter type of dispatch

Enter Execution date

Enter Surety as: No



Creation ARE document for export sales under Letter of under taking

Purpose This transaction is used for creating ARE1 document with reference to an Exciseinvoice document

PrerequisitesThe ARE1 document to be generated with reference to excise invoice. • Excise invoice has to be generated for sales under letter of undertaking.

Menu PathTransaction J1ILN: SAP India Localization Menu• Indirect Taxes -> Sales/Outbound Movements -> Exports Under Excise

Regulations -> Exports -> J1IA101 - Create/Change/Post/Update/Cancel/Display/Reverse ARE-1



Use transaction J1IA101Enter Dispatch date and time.

Enter Date of dispatch

Enter time of removal



Enter internal Bond number

SD CIN - TRANSACTIONSEnter Internal Bond numberPost the document by clicking on Note down the ARE1 document number


Updation of ARE1 document Purpose • This transaction is used for updating and closing ARE1 document.

Prerequisites• The ARE1 document to be posted in the system.

Menu Path• Transaction J1ILN: SAP India Localization Menu• Indirect Taxes -> Sales/Outbound Movements -> Exports Under Excise

Regulations -> Exports -> J1IA101 - Create/Change/Post/Update/Cancel/Display/Reverse ARE-1

Transaction Code • J1IA101 - Create/Change/Post/Update/Cancel/Display/Reverse ARE-1



• Use transaction J1IA101• Enter Arrived at customs date,• Sent to Excise dept,• Countersigned by customs date,• Export Confirmed date.• Save the document using Ctrl + S to update the ARE1 document.

Update the relevant data as shown



CIN Registers

Agenda

Register Entry/Update


Purpose • Updating Registers for issues and receipts GoodsPrerequisites• Company code• Plant• Excise group• Posting date• Receipt/Issue Excise classification codes• Register type to be updatedTransaction Code • J1I5

EXCISE REGISTERS - UpdateExcise Registers maintained are:

RG1RG23ARG23CPLARG23D


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.

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

EXCISE REGISTERS - Update


• Enter Company code, Plant, Excise group, Posting date, Excise classification for the receipt or issue.

Enter Company code, Plant, Excise group

Enter Posting date for Material document

Enter Classification

Select Document Posting date Button

Select Register



• A list of material documents relevant for Register updation are short listed as shown below.

• Select the relevant Material document and click on to simulate.

• Click on to update the material document to Register.

• Will appear at the bottom of the screen.

Select the relevant entry to be updated



Purpose

• Extracting entries updated to Register for issues and receipts of excisable goods.

Prerequisites

• Excise group• Start date• End date• Register Type• Receipt/Issue Excise classification codes

Transaction Code

• J2I5

EXCISE REGISTERS - Extraction


Following screen will appear on executing transaction J2I5.

Enter Excise group, Start date, End date, and radio button for Register type.

Press F8 for extracting Register.


• Following screen will be displayed on successful extraction

of Register.


• Following screen will be displayed on successful extraction of Register.



SD CIN (Country version India)1 PrepareMe

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LetMeCreate of Master Data for Tax calculation

J1ID Excise rate maintenance

FV11 Maintain Tax Condition Records

VK11 Maintain Condition Record

J1IBN01 Create Excise Bond

FTXP Tax Code maintenance

VK11 Tax condition record maintenance


LetMeTransactions

J1IEX Capture Incoming Excise Invoice

J1IIN Capture outgoing Excise invoice for Sales order

J1IJ Capture outgoing Excise invoice for Depot Sales

J1IS Capture outgoing Excise invoice for Other goods movement

J1IP Print Excise Invoice

J2IU Post Fortnightly Payment

J1IA101 Create / Change ARE1 for central processing

J1IA102 Create / Change ARE1 for Individual processing

J1IA301 Create / Change ARE3 for central processing

J1IA302 Create / Change ARE3 for Individual processing

J1I2 Sales Tax Register

J1I5 Update Excise Register


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HelpMeCIN TABLES

All CIN Tables start with J_1I and J_2I. There are 129 tables. A few of them are:

• J_1IEXCHDR (Header data of Excise Documents)• J_1IEXCDTL (Line item data of Excise Documents)• J_1ICHPTER (Chapter ID master)• J_1IEXGRPS (Excise Groups)• J_2IEXTRCT (Data extract tables for Excise Registers)• J_2IUTZDAT (Utilization Date)


HelpMeAdditional Info

How to add new statutory printing documents for taxation

Smart forms need to be created for all the statutory forms exactly as per legal requirements

Need to assign all the forms to required documents types by using output determination.

Technology

66141293 sap-sd-cin