CIN Settings in 47_.doc

8/10/2019 CIN Settings in 47_.doc

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CIN Settings

Menu Path for CIN Configurations:

Logistics General > Tax on Goods Movement > India



Basic Settings:

Maintain Excise Registrations: In this IMG activity, you maintain the data relating to your exciseregistrations.

Maintain Company Code Settings: In this IMG activity, you maintain the data relating to your companycodes.

When you post a goods receipt, the system splits the input excise duty on the material into its deductibleand nondeductible amounts. It posts the deductible duty to the appropriate CENV! account, and adds

Controls "hich document type the system uses "hen

ma#ing CENV! postings in $inancial ccounting %$I&.

$inancial accounting document type 'or !() posting.

llo"s users, "hen entering *ournal vouchers, to over"rite theproposed debit accounts depending on the nature o' transaction.

utomatic +alance ad*ustment indicator

Instructs the system, "hen you veri'y a goods receipt 'or capital goods, to immediately posthal' o' the input excise duty to the appropriate CENV! accounts. !he rest is posted the

CENV! on hold account, 'or use in the 'ollo"ing year.



Maintain Plant Settings: In this IMG activity, you maintain excise in'ormation relating to your plants.

I' the value o' this 'ield is - and today is /-0/12. !he excise invoice selection"ill sho" the related invoices only 'or the period -/-0/12 to /-0/12.

Indicates the number o' excise invoices that needs tobe selected in the excise invoice selection.

)peci'ies "hich procedure you use toselect excise invoices, either 'irst in,'irst out, or last in, 'irst out.

3ounds o'' the excise duty on each line item in a purchase order. !he system rounds the duty o'' tothe nearest rupee. 4o"ever, i' the duty amount is less than one rupee then no rounding is done. Itdoes not round o'' the CENV! credit to be ta#en.

Indicates that the plant in 5uestion is a depot.

)peci'ies "hether you are allo"ed to receive more than one delivery per excise invoice,and i' so, "hether you can ta#e the CENV! credit immediately (Multiple Credits) or haveto "ait until the delivery has been made in 'ull (Single Credit).



Maintain excise Groups: In this IMG activity, you de'ine your excise groups. $or each excise group, youcan also control ho" various excise invoice transactions "ill "or#.

The Address Field ao!e speci"ies an organi#ation$s postal address.

Instructs the system to automatically create an outgoing excise invoiceimmediately a'ter you create a commercial invoice or a pro 'orma invoice. !hesystem creates the excise invoice in the bac#ground.I' you "ant to ma#e use o' this 'unction, you must also de'ine the de'aultplant, excise group, and series groups in Customi6ing 'or Excise (uty, bychoosing +usiness !ransactions /7 8utgoing Excise Invoices /7 Maintain(e'ault Excise Groups and )eries Groups.

Instructs the system to automatically veri'y and post excise invoicesthat you create using the Excise Invoices 'or 8ther Movements transaction.

utomatically generates a 'olio number "hen you post goods receipts and goods issuesthat are recorded in register 3G 0(. I' you use this 'unction, maintain the numberranges 'or the 'olio number. In Customi6ing 'or Excise (uty, choose !ools /7 %umerRanges& and create an interval 'or 9:;I3G0( %$olio Numbers&.

utomatically veri'ies and posts theselection o' excise invoices that you haveassigned to a delivery 'rom a depot.



Maintain Series Groups'seIn this IMG activity, you de'ine the di''erent excise series groups "ithin your company. )eries groups allo"you to maintain multiple number ranges 'or the outgoing excise documents.+ased on excise regulations and exemptions 'rom the authorities you can maintain multiple number series'or outgoing documents. +ut each o' these series has to be declared to the excise authorities.Acti!ities

• (e'ine excise series groups based on type o' outgoing document• ssign series group to excise registration I(

• I' no 'inancial postings are re5uired 'or an Excise invoice in this series group then you tic# the <No

utili6ation< indicator.

• I' the CENV! has to be paid immediately and you need not "ait 'or the $ort nightly payment then

mar# the <Immediate =tili6ation< indicator.Example>ou could de'ine t"o series groups, group --; 'or excise invoices, and group -- 'or ?2 $@ documents.

Maintain Excise duty indicators: In this IMG activity, you maintain the excise duty indicators.



Maintain Postal Addresses'seIn this IMG activity, you maintain the addresses o' various customs and excise organi6ations that yourcompany deals "ith.>ou use these addresses in the ARE (ocuments 'unctions. When you create an ARE)* or ARE)+& youenter the address o' the excise department and the customs department involved in the export process. !hesystem then prints their names and addresses on the 3Es.

>ou can then de'ine a de'ault local excise department 'or each excise group and a de'ault customsdepartment 'or each series group.



(etermination o" Excise (uty

Select Tax Calculation Procedure'seIn this IMG activity, you speci'y "hich tax procedure you "ant to use 'or determining excise duties and salestaxes on input materials in India.

• I' you use condition)ased excise determination& use a copy o' the tax procedure !AINN.

• I' you use "ormula)ased excise determination& use a copy o' the tax procedure !AIN9.!his tax procedure also supports condition/based excise determination, so that you can "or# "ithboth concurrently.

We strongly recommend that ne" customers use condition/based excise determination. Note that once youhave started using a tax procedure, you cannot s"itch to another oneB other"ise you "ill not be able todisplay old documents.

Maintain Excise (e"aults'se

In this IMG activity, you de'ine "hich tax procedure and pricing condition types are used in calculating excisetaxes using 'ormula/based excise determination.Acti!itiesI' you use condition/based excise determination, 'ill out the CVD cond. 'ield and leave all the others blan#.I' you use 'ormula/based excise determination, 'ill out all o' the 'ields as 'ollo"s

• Enter the tax procedure and the pricing conditions that are relevant 'or excise tax processing.

• )peci'y the purchasing and sales conditions types used 'or asic excise duty& additional excise

duty& special excise duty& and cess.

• )peci'y the conditions in the sales order that are used 'or excise rates.

• )peci'y the counter!ailing duty condition type used 'or import purchase orders.

See also)D ibrary /7 Logistics /7 Country Versions /7 Asia-Pacific /7 India /7 Materials Management (MM) /7Condition-ased !"cise Determination and /7 #ormula-ased !"cise Determination.



Condition),ased Excise (etermination

(e"ine Tax Code "or Purchasing (ocuments'seIn this IMG activity, you de'ine a tax code 'or the purposes o' calculating excise duty "hen you enterpurchasing documents.8nly carry out this activity i' you use condition/based excise determination.

Acti!itiesCreate a ne" tax code, and set the tax code type to V %input tax&. (o not ma#e any other settings 'or it.See also)D ibrary /7 Logistics /7 Country Versions /7 Asia-Pacific /7 India /7 Materials Management (MM) /7Condition-ased !"cise Determination.

Assign Tax Code to Company Codes'seIn this IMG activity, assign the tax code 'or purchasing documents to the company codes "here it "ill beused.8nly carry out this activity i' you use condition/based excise determination.See also)D ibrary /7 Logistics /7 Country Versions /7 Asia-Pacific /7 India /7 Materials Management (MM) /7Condition-ased !"cise Determination.



Classi"y Condition Types'seIn this IMG activity, you speci'y "hich condition types you use 'or "hich sort o' tax. Note that this onlyapplies to condition types that you use "ith the ne" excise determination method.!he system uses this in'ormation "hen you create a document 'rom another one. $or example, "hen youenter an incoming excise invoice 'rom a purchase order, or "hen you create an outgoing excise invoice 'roma sales order, the system determines the various excise duties in the excise invoice using the in'ormation

that you have entered here.In addition, "hen you create a purchasing document, the system only uses the condition types that youenter here.

• $or taxes on purchases, use the condition types contained in the tax procedure.

• $or taxes on sales, use the condition types contained in the pricing procedures.

Standard settings!he standard system comes "ith sample settings 'or the tax calculation procedures and pricing procedures.=se these settings as a basis 'or your o"n.



Account (etermination: In this IMG activity, you speci'y "hich GF accounts you "ill use to record "hichtaxes.

Speci"y Excise Accounts -G A/Cs0 per Excise Transaction Type'seIn this IMG activity, you speci'y "hich excise accounts %'or excise duty and CENV!& are to be posted to 'or the various transaction types. Enter all the accounts that are a''ected by each transaction type.I' you use sub transaction types, enter the accounts 'or each sub transaction type as "ell.Acti!ities!ransaction type =! is used 'or determining accounts only "hile posting excise 9Vs and also i' thepayment o' excise duty has to be done 'ortnightly.!he 'ortnightly CENV! payment utility pic#s up the credit side accounts 'rom the transaction types o' G3D8, EWD8, and !3HC 'or determining the CENV! and D accounts. !here is no separate transactiontype 'or 'ortnightly payment.Example

Excise TT (C ind Account name

G3D8 C3 CENV! clearing account

G3D8 C3 3G 0 +E( account

G3D8 (3 CENV! on hold account



Speci"y G/ Accounts per Excise Transaction'seIn this IMG activity, you assign the excise and CENV! accounts to GF accounts.When you come to execute the various transactions, the system determines "hich GF accounts to post toby loo#ing at the

• Excise group

• Company code

• Chart o' accounts

$urthermore, i' you "ant separate account determination settings "ithin an excise group, you can also usesub transaction types.Re1uirements>ou have already

• (e"ined the G/ accounts

• (e"ined the excise groups

• Maintained the transaction accounts

Acti!ities$or each excise group, assign the excise and CENV! accounts to GF accounts. $or most businesses, oneset o' accounts "ill su''ice 'or all transactions.%ote>ou need not remit the CENV! to the excise department immediately, so maintain the credit account 'ortransaction type ($C as an excise duty interim account. !his "ill be set o'' "hen you remit the duty.



,usiness Transactions "or 2ncoming Excise 2n!oice

Select Fields'seIn this IMG activity, you speci'y "hich 'ields you "ant in the 2ncoming Excise 2n!oices transaction.!he settings that you ma#e here apply 'or all versions o' the transaction that you might create.Acti!ities

$or each 'ield, speci'y "hether you "ant it to be an input 'ield, a display 'ield, and so on. >ou can alsohighlight 'ields o' particular importance.8nly the main table is o' interest. >ou do not need to use the other 'unctions, such as Influencing or Screen$roups.

(e"ine Processing Modes per Transaction'seIn this IMG activity, you speci'y "hich processing modes the user can use in the various Incoming ExciseInvoice transactions.!his "ay, you can tailor the transaction to "hat your users have to do.



(e"ine Re"erence (ocuments Per Transaction'seIn this IMG activity, you speci'y 'or each combination o' transaction and processing mode "hich re"erencedocuments you "ant the users to be able to use.Acti!itiesI' the standard settings meet your re5uirements, you do not have to do anything.8ther"ise, add the entries that you need to the table $or each transaction, ma#e one entry per combination

o' processing mode and re'erence document. ctivate each entry 'or it to "or#.

Maintain Re3ection Codes'seIn this IMG activity, you de'ine the re*ection codes that are used in the 2ncoming Excise 2n!oices

transaction.Acti!ities$or each re*ection code, enter a code and a description. >ou can also speci'y "hether the excise duty in theinvoice is to be posted to the CENV! on hold account, instead o' the CENV! clearing account.

Speci"y 4hich Mo!ement Types 2n!ol!e Excise 2n!oices'seIn this IMG activity, you speci'y "hich movement types relating to goods receipts involve excise invoices.!he system uses this in'ormation during the goods receipt procedure. When you post a goods receipt usingone o' the movement types that you have speci'ied here, the system prompts you to enter the excise invoicenumber.%ote!his option cannot be used 'or processing goods receipts "ithout purchase orders.



,usiness Transactions "or 5utgoing Excise 2n!oice

Pricing Procedure "or Factory Sales

$actory )ales Dricing Drocedure / 9$C!

!his is a template o' pricing procedure 'or )ales 'rom $actory. 9MN is a manual condition 'or Excise. When

manual override is re5uired 'or the calculated excise value it could be given 'or the condition 9MN. !hecondition value 'ormula 0?? chec#s and copies this on to the +asic Excise duty value. =!A9 is the conditionin 9$C! "hich triggers the calculated call o' tax procedure !AIN9. Condition records need to bemaintained 'or =!A9 "ith the appropriate tax code. ccess se5uence 9IN( has been assigned to thecondition =!A9. +ase value 'or calculation o' excise derived 'rom the condition base value 'ormula 0?;.!his ensures that i' an assessable value is maintained 'or the material through Excise rate maintenance%9;I(& then that "ill be used as basis 'or excise calculation. In the absence o' an assessable value theselling price "ill be used 'or excise calculation.9M8( is a $I !ax condition "hich gets the +asic Excise duty 'rom calculation 'ormula 0?. 9EA is a copy o' 9M8( and is a )ales pricing condition. !he value o' 9EA gets posted 'or Excise account #ey. !his ensuresthat the cost accounting o' excise value paid is done correctly. In cases "here commercial invoice is createda'ter utili6ation the condition value 'ormula 0?0 ensures that the actual M8(V! utili6ed is accounted asexcise. )imilarly 9E( is a $I !ax condition "hich gets the dditional Excise duty 'rom calculation 'ormula0?. 9EA is a copy o' 9E( and is a )ales pricing condition. !he accounting is done 'or the value o' 9EA.9)E( is a $I !ax condition "hich gets the )pecial Excise duty 'rom calculation 'ormula 0?. 9EA) is a copy

o' 9)E( and is a )ales pricing condition. !he accounting is done 'or the value o' 9EA). 9CE) is a $I !axcondition "hich gets the CE)) 'rom calculation 'ormula 0?. 9CE( is a copy o' 9CE) and is a )ales pricingcondition. !he accounting is done 'or the value o' 9CE(.)ales !ax / Identi'ication o' Central or ocal )ales tax.+oth C)! and )! rates are maintained in one tax code in the same *urisdiction. %3e'er !ax code V &. !herates are maintained at the tax code level. +ut then re5uirement 'ormulae are attached to the )! and C)!tax conditions in the tax procedure. !he re5uirement 'ormula 0?; decides "hether C)! is applicable basedon the 3egion o' the ship/to party and the region o' the delivering plant being di''erent. !he re5uirement'ormula 0? decides "hether )! is applicable based on 3egion o' the ship/to party and the region o' thedelivering plant being same.>ou can enhance the re5uirement 'ormula to add your o"n logic 'or deciding "hether the tax applicable isC)! or )!. ll the 'ields speci'ied in the pricing 'ield catalog are available in the 'ormula.Important I' you are not using re5uirement 'ormula to decide on the sales tax remove it 'rom the !axprocedure as "ell as pricing procedure. )ales tax rates needs to be maintained separately 'or each

*urisdiction

Important Manual override o' applicability o' )! or C)! is not possible i' elimination is done usingre5uirement 'ormulae.)! and C)! rates are maintained in di''erent tax codes at di''erent *urisdiction. % 3e'er tax code V? andVH& (e'ault

Export )ales Dricing Drocedure / 9EAD83!here is no Excise condition in the Exports pricing. +ut excise can be calculated at M8(V! utili6ation.

)toc# !rans'er Dricing Drocedure / 9)!!3)toc# trans'er pricing has only excise conditions as it is used only 'or the calculation o' excise value.

(epot Dricing Drocedure / 9(ED8!(epot pricing procedure is exactly similar to the $actory pricing procedure "ith the exception that thecondition value 'ormula attached to the excise condition is 0?H. !his ensures that the excise value 'rom there'erred excise invoices 'or the delivery is pic#ed up and used by the commercial invoice.

8utput (eterminationIn )tandard Customi6ing 'or output determination 'ollo"ing settings has to be maintained.8utput determination procedure has to be maintained against the +illing typeCreate an output type and maintain the (river program, $orm routine and the layout.(river program is the name o' the program that the system calls up to process the output$orm routine is the name o' routine to be called up in the processing programayout is the name o' a )ap script layout set that can be designed as per user re5uirement!o enable printing o' particular document 'or partner 'unction, maintain the desired partner 'unction againstthe output type.



Drinter communication details can be maintained by creating condition records "here partner 'unctions canbe assigned to output typesCopy Control 'rom delivery to +illing%i& When excise and commercial invoice are the same!he copy control path is 83 //7 $ //7 $When excise and commercial invoice are di''erent, i.e. Multiple excise invoices 'or a single commercialinvoice

!he copy control path is 83 9$ 9EA $!o Maintain copy control 'or billing documentsDath IMG )ales and (istribution +illing +illing documents maintain copying control 'or billing documentsMaintain the 'ollo"ing entries 'or +illing type $ and (elivery type 9$ at item levelItem Category !NCopying re5uirements 0;-(ata V+3FV+3D 0?;Maintain the 'ollo"ing entries 'or +illing type 9EA and delivery type 9$ at item levelItem Category !NCopying re5uirements 0;;(ata V+3FV+3D 0?;!o chec# the 'ormula and change source i' re5uired!o chec# F change 'ormula 0;- J 0;;V8$M //7 Copying re5uirements //7 billing document //7 Choose $ormula %)ource !ext&!o chec# F change 'ormula 0?;

V8$M //7 (ata trans'er //7 billing document //7 Choose $ormula %)ource !ext&$ormula 0;-!he routine is to be attached to the copying re5uirement in $ to $ copy control 'or !N item category. !hisis to be used "hen the pro'orma invoice is used as re'erence 'or the excise invoice. i.e. the procedure insales is)8 /7 $ /7 9EA /7 excise posting by 9;II /7 $!he added 'unctionality o' this routine ensures that the excise posting ta#es place be'ore the billingdocument is created. In case o' depot sale it ensures that the excise invoice selection has ta#en placebe'ore the billing document is created.$ormula 0;;!he additional chec# done in this routine is that post goods issue is done 'or the delivery document and italso prevents multiple creation o' the billingFpro 'orma document to "hich this 'ormula is attached multipletimes 'or the same delivery item.(ata trans'er / +illing documents!his routine splits the items o' a delivery into multiple billingF pro'orma documents. !he split is based on the

'ollo"ing 'ields (istribution channel, division, delivery, chapter id and also the maximum number o' items ina document is pic#ed up 'rom the customi6ation and imposed on the document being created

Assign ,illing Types to (eli!ery Types'se>ou enter outgoing excise in!oices by re'erring to either o' the 'ollo"ing documents

• Customer invoices

• Dro 'orma excise invoices

!hese options are represented in the system by di''erent document types and document 'lo"s.In this IMG activity, you

• )peci'y "hich billing document types you use as a re'erence 'or CENV! utili6ation

• ssign them to the appropriate delivery document types

Re1uirements>ou have set up the delivery types and copy control as 'ollo"s

• Create separate delivery types in Customi6ing 'or Logistics !"ecution %E&, by choosing S%ipping

/7 Deli&eries /7 Define Deli&ery 'ypes.

• )et up copy control 'or the delivery types in Customi6ing 'or E, by choosing S%ipping /7 Copying

Control /7 Specify Copy Control for Deli&eries.

• Create billing types in Customi6ing 'or Sales and Distriution %)(&, by choosing illing /7 illing

Documents /7 Define illing 'ypes.

• )et up copy control 'or the billing types in Customi6ing 'or )(, by choosing illing /7 illing

Documents /7 Maintain Copying Control for illing Documents.



Standard settingsIn the standard system, there are t"o document 'lo"s that you can use

• )tandard order %document type 83& /7 8utbound delivery %$& /7 Dro'orma excise invoice %9EA& /7

Invoice %$&

• )tandard order %83& /7 Excise invoice %9$& /7 Invoice %$&.

>ou can use these settings i' you "ish, or alternatively, you can ma#e copies o' these document types andcopy control settings.

Acti!ities

• ssign a CENV! re'erence billing type to each delivery type.

Maintain (e"ault Excise Groups and Series Groups'seIn this IMG activity, you speci'y "hich excise group and series group you "ant to appear in these 'ields byde'ault. >ou can ma#e separate settings 'or di''erent combinations o' sales organi6ation, distributionchannel, division, and shipping point.Acti!ities!his activity is optional, unless you "ant the system to automatically create outgoing excise invoices "henyou create a customer invoice.In this case, you must also ma#e the appropriate setting in Customi6ing 'or !"cise Duty , by choosing asic

Settings /7 Maintain !"cise $roups and selecting Create !I %Create Excise Invoice utomatically&.