What is sap cin

What is CIN? CIN Means Country India Version

In Indian Taxing procedure, Excise Duty plays a vital role in manufacturing cenario’s. Excise related configuration is known as CIN configuration. CIN Configuration is a topic in itself. 

Some info on CIN Configuration (it may not appear as understandable below, but if you check on screen, it will be understood better)

Country Version India comes with four pricing procedures as follows: - JINFAC (Sales from manufacturing plants)  - JINEXP (Export sales)  - JINDEP (Sales from depots)  - JINSTK (Stock transfers

CIN: IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings > Maintain Excise Registrations

In this IMG activity, you maintain the data relating to your excise registrations. - Enter each of your excise registrations, specifying a four-character code for each Excise Registration Ids

In this activity, you maintain excise registration IDs. You create one ID for each of your business's excise registrations. - For each excise registration in your business create a registration ID, and state: - Which taxes the registration covers (additional excise duty, special excise duty, and cess) Fields for any taxes that are not covered will be hidden in transactions involving excise duty. - The maximum number of items to be printed on each excise invoice - Whether you are allowed partial CENVAT credits

Maintain Registration ID NUMBER, Excise code number, excise registration number 

ECC Number: Specifies the organization's ECC number.  Excise Registration Number:  A number assigned to each premises or location that has registered as a manufacturer with the excise authorities. Every entity with an excise registration number is required to keep its own excise books. Excise range: Specifies the excise range in whose area the excise registration is located. Excise Division: Specifies the excise division in whose area the excise registration is

located. Excise Collectorate: The code of the excise collectorate in whose area the excise registration is located.

Indicator for confirming, AED usage Additional Excise duty Percentage. These are livable under the additional duties of excise act. These duties are in addition to basic excise duty and special excise duty. Example - Additional Excise duty is livable in case of textile products, tobacco and sugar.

Similarly for SED CESS Number of Items in Excise Invoice Shows the maximum number of line items that the authorities allow per excise invoice.

Dependencies - This information is used when you create an excise invoice in Sales and Distribution (SD) for factory sales and for other movements.  This information is used to split the transfer postings' items into multiple subcontracting challans.

Excise register set description: Description of the excise registers set.

Partial CENVAT Credit: Indicates that the excise registration ID is allowed to credit only a portion of its input excise duty to its CENVAT account

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

This information is also shown when you post the vendor's excise invoice.

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

Document Type for CENVAT Postings.  It controls, which document type the system uses when making CENVAT postings in Financial Accounting (FI). Here ED is document type for cenvat posting.

Indicator for providing debit account overwriting  Debit Account Overwrite Indicator. X - Indicates debit accounts can be overwritten. Use In excise journal voucher transaction. It provides the flexibility to the user to enter the debit account of his choice depending on the nature of transaction.

Automatic balance Indicator - Excise year start month.  The calendar month marking the beginning of the excise year.  This start month represents the month for the start of

the excise invoice number range. The month 04 is entered here indicating April of the calendar year as the start month for excise invoices. Any change by the Excise authorities regarding start month should be taken care of by an entry in this field and initialization.

Excise invoice selection procedure :Excise invoice selection type. To indicate the method opted by the company for selecting the excise invoice. It can be either earliest or latest invoices that were received. Number of excise invoices to be selected Indicates the number of excise invoices that needs to be selected in the excise invoice selection.

Days to be considered for excise invoice selection Number of days from document date for excise invoice selection.  Example - If the value of this field is 20 and today is 28-03-97. The excise invoice selection will show the related invoices only for the period 08-03-97 to 28-03-97.

Document type for TDS FI posting: Financial accounting document type for TDS posting.

Document type for FI posting on Utilisation Financial accounting document type for TDS posting.

Indicator for item level excise duty round off - This indicator is to be used for deciding whether Item level excise  duty amount rounding off is required during procurement cycle. If marked 'X' then the excise duty amount will be rounded off to the nearest rupee at the Purchase order level. This will not round off the CENVAT credit to be taken. If the duty amount is less than one rupee then no rounding is done

Rounding off of Excise duty for outgoing excise invoice - You can round off the Excise amount to be paid during an outgoing  Excise invoice by marking this indicator as 'X'. The rounding is done at the item level for each item where the amount is greater than 1 Rupee. 

Immediate Credit on Capital Goods - Instructs the system, when you verify a goods receipt for capital goods, to immediately post half of the input excise duty to the appropriate CENVAT accounts.  The rest is posted the CENVAT on hold account, for use in the following year.

CVD Clearing Account - Specifies which G/L account the system credits when you take a CENVAT credit on countervailing duty in the Incoming Excise Invoices transaction.

Exchange rate type - Key representing a type of exchange rate in the system.  - You enter the exchange rate type to store different exchange rates. Example - You can use the exchange rate type to define a buying rate, selling rate, or average rate for translating foreign currency amounts. You can use the average rate for the currency translation, and the bank buying and selling rates for valuation of foreign currency amounts. 

Exchange rate type to be used for Export excise duty converts - When you are creating an Excise invoice for export sales then the exchange rate for duty calculation will be picked up using this Exchange rate type.

Maintain Plant Settings - In this IMG activity, you maintain excise information relating to your plants. Plant Settings - In this activity, you maintain excise information relating to your plants. For each plant: - Specify whether it is a manufacturing site or a depot. - Assign it an excise registration ID. - You can assign the same ID to more than one plant, if required.

Depot - Indicates that the plant in question is a depot. - Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and invoice generation. - Number of goods receipt per excise invoice. - Multiple GR for one excise invoice, Single credit - Multiple GR for one excise invoice, multiple credit

Maintain Excise Groups - In this IMG activity, you define your excise groups. For each excise group, you can also control how various excise invoice transactions will work.

Excise Groups - In this activity, you define excise groups. An excise group allows you to maintain a separate set of excise registers and excise accounts. The RG 23A, RG 23C and PLA serial numbers are created for an excise group.

Recommendation - Under normal circumstances, excise authorities require every business to maintain only one set of excise registers and one set of accounts.  But through exemption from the authorities, multiple books can be maintained.

If your company has only one set of excise registers, then you need to maintain only one excise group. 1. Create one excise group for each set of registers that you need to keep. 

2. Assign the excise groups to plants. 3. Maintain whether this Excise group is for a depot or not.  If you receive only one consignment for an Excise challan then you can leave GR's per EI as blank. If you receive multiple GR's for a given Excise challan and would like to avail multiple credit mark the GRs per EI as 'Multiple GR's for one excise invoice, multiple credit'.   Alternatively if you want to availa the credit only after all the goods receipts have been made mark it as ' Multiple GR for one excise invoice, single credit'. 4. If you want to automatically create Excise invoice during Sales cycle at the time of billing the tick the indicator 'Create EI' 5. During depot sales if you do not want to do RG23D selection and posting separately and would like to complete RG23D selection in one step mark the indicator 'RG23D Auto post'. This will post the selected records into RG23D automatically. You cannot cancel the selection later.  6. If the indicator 'Default GR qty' is marked system will default the Excise challan quantity on to the Goods receipt if the Excise invoice number is given in the pop-up. 7. If the indicator 'Folio no create' is marked system will generate Folio numbers for RG23D during receipt of excise invoice into depot. 8. 'Automatic posting' when ticked will post the Excise invoice other movements automatically along with creation in single step. 9. 'Create Part1 for Block Stock' when marked will create a Part1 during the receipt of material into Blocked stock . 10. 'Create Part1 for STO' when marked will create a Part1 during the receipt of material through inter plant transfers.  11. 'Create Part1 for consumption stock' when marked will create a Part1 during the receipt of material into consumption stock. Excise Group Governs which set of excise registers a business transaction will be included in.

Following is the relation between excise group, plant and registration. - In define excise groups in Customizing. Then, in transactions involving excise duty, for example, when you post a vendor's excise invoice, you specify which excise group you are using. This information tells the system which G/L accounts to post the excise to.  At the end of the period, when you come to prepare your excise registers, you create different sets for each excise group.

Indicates that the plant in question is a depot. - Depots are required to prepare register RG 23D, and follow different  procedures for goods receipt and invoice generation.  - GR Per Excise Invoice - Multiple GR for one excise invoice , Multiple credit - Multiple GR for one excise invoice , Single Credit

Create Excise Invoice Automatically - Instructs the system to automatically create a Sales and Distribution (SD) excise invoice immediately you create a commercial invoice or a pro forma invoice. The excise invoice is created in the background. - If you want to make use of this function, you must also define the  default plant, excise group, and series groups in Customizing for Sales and Distribution (SD), by choosing Excise Group - Series Group Determination.

RG23D Sales Creation and posting option - RG23D Automatic Option if selected will create Depot excise invoice by  posting the selection of excise invoices in single step.   If this is not selected then you need to separately do RG23D selection  followed by PGI and then RG23D verification and posting.  If you need automatic posting of RG23D selection then the Post Goods Issue should have been completed before running RG23D selection. 

Default excise qty in GR - If this indicator is ticked then while doing Goods Receipt using 'MB01' system will default the excise invoice quantity on to the Goods receipt document.

Folio number for depo Posting - If this indicator is marked then while creating Excise invoice for other movements system automatically does the Verify and Post. You need not separately Post the excise invoice

Also we can set indicator for creation of part 1 for: - Blocked stock  - Stock transport order - Consignment stock

Maintain Series Group - In this IMG activity, you define the different excise series groups within your company. 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.

- Define excise series groups based on type of outgoing document - Assign series group to excise registration ID - If no financial postings are required for an Excise invoice in this seris group then you tick the 'No utilization' indicator. - If the CENVAT has to be paid immediately and you need not wait for the Fort nightly payment then mark the 'Immediate Utilization' Iindicator.   Example - You could define two series groups, group 001 for excise invoices, and group 002 for 57

F4 documents.  - No account postings for CENVAT in sales cycle  - No utilization Flag If you do not need any CENVAT utilization for an excise invoice but would like to just generate an excise invoice then you need to mark this indicator. If the flag is checked then system will create an Excise invoice in the given Series group but there will not be any account postings or Part2 postings. 

Immediate Utilization of CENVAT - Specifies that when you create an excise invoice, the system immediately pays the amount from CENVAT and creates the Part II entry. Such invoices will not be listed for fortnightly utilization.

If you have both fortnightly and immediate utilization for the same excise group, the account determination within CIN IMG should point to the ED interim account.

Account determination for immediate payment will be done exactly the same as being done for fortnightly utilization program.

Maintain Excise Duty Indicators - In this IMG activity, you maintain the excise duty indicators.  IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty > Select Tax Calculation Procedure

In this IMG activity, you specify which tax procedure you want to use for determining excise duties and sales taxes on input materials in  India. - If you use condition-based excise determination, use a copy of the tax procedure TAXINN. - If you use formula-based excise determination, use a copy of the tax procedure TAXINJ. This tax procedure also supports condition-based excise determination, so that you can work with both concurrently. We strongly recommend that new customers use condition-based excise determination. Note that once you have started using a tax procedure, you cannot switch to another one, otherwise you will not be able to display old documents. 

Maintain Excise Defaults - In this IMG activity, you define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination.

If you use condition-based excise determination, fill out the CVD cond. field and leave all the others blank. If you use formula-based excise determination, fill out all of the fields as follows: 

- Enter the tax procedure and the pricing conditions that are relevant for excise tax processing. - Specify the purchasing and sales conditions types used for basic excise duty, additional excise duty, special excise duty, and cess. - Specify the conditions in the sales order that are used for excise rates. - Specify the countervailing duty condition type used for import purchase orders.

See also : SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materials Management (MM) -> Condition-Based Excise Determination and -> Formula-Based Excise Determination. 

IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty > Condition-Based Excise Determination 

When you enter a purchasing document, for example, a purchase order, the R/3 System automatically calculates the applicable excise duties using the condition technique.

Features : The standard system comes with two tax calculation procedures. TAXINN is only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise  determination. Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable. Since the exact rates of excise duty can vary on a large number of factors, such as which vendor you purchase a material from, or which chapter ID the vendor stocks the material under, you create condition records for every sort of excise duty. When you come to enter a purchasing document, the system applies the excise duty at the rates you have entered in the condition records.

Customizing : Make the settings in Customizing Basic -> India -> for Logistics – General, by choosing Taxes on Goods Movements Account -> Excise Duties Using Condition Technique and …-> Settings Determination. 

These activities include one activity where you define a tax code for condition-based excise determination.

Master Data - Create condition records for all excise duties that apply, and enter the tax code for condition-based excise determination in each. 

Day-to-Day Activities -  When you enter a purchase order or other purchasing document, enter the tax code for condition-based excise determination in each line

item. The system then calculates the excise duties using the condition records you have created.

When the ordered materials arrive, you post the goods receipt and the excise invoice. The system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice. 

Creating Condition Records for Excise Duty  1. In the command field, enter FV11 and choose .  2. Enter the condition type that you want to create a condition record for and choose .  The Key Combination dialog box appears. 3. Select the combination of objects that you want to create the condition record for.   On the dialog box, Control Code means "chapter ID." So, for example, to create a condition record for a tax that applies to a combination of country, plant, and chapter ID, select Country/Plant/Control Code. 4. Choose .  5. Enter data as required.  - In the Tax Code field, enter the dummy tax code that you have defined.  6. Save the condition record.  Formula-Based Excise Determination  -  When you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.

In order for the system to be able to determine which rate of excise duty to apply, you must have maintained all the data on the Excise Rate Maintenance screen, which you can Master Data®access from the SAP Easy Access screen by choosing Indirect Taxes Excise Rate Maintenance. 

You maintain the following types of data: - Plant master data You assign each of your plants an excise duty indicator. You can use the same indicator for all the plants with the same excise status from a legal point of view, such as all those that are in an exempt zone. See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit). - Vendor master data For each of your vendors with the same excise status from a legal perspective, you define an excise duty indicator. You must also specify the vendor type – for example, whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as a small-scale industry.  For each permutation of plant indicator and vendor indicator, you then create a final excise duty indicator. - Customer master data 

Similarly, you assign the same excise duty indicator to each of your customers that share the same legal excise status. Again, for each permutation of plant indicator and customer indicator, you then create a final excise duty indicator. - Material master data Each material is assigned a chapter ID.  - Excise tax rate For every chapter ID and final excise duty indicator, you maintain the rate of excise duty. If your business only qualifies for partial CENVAT credit, you must customize your system accordingly. 

Let us consider an example to illustrate how the system determines which rate of excise duty to apply to a material. Assume you are posting a sale of ball bearings to a customer. The system automatically determines the rate of excise duty as follows: 1. Looks up the customer master data to see what status you have assigned the customer.  Let's assume you've assigned the customer status 3.  2. Looks up the plant master data to see what status you have assigned the plant. Similarly, your plant has status 2. 3. The system looks up the table under Excise Indicator for Plant and Customer to see what the final excise duty indicator is for customer status 3 and plant status 2: It is 7.  4. The system determines the chapter ID of the ball bearing for the plant.  Let’s assume the chapter ID at plant for the ball bearings is 1000.01. 5. Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000.01 under  status 7. 

Define Tax Code for Purchasing Documents -  In this IMG activity, you define a tax code for the purposes of calculating excise duty when you enter purchasing documents. Only carry out this activity if you use condition-based excise  determination.  - Create a new tax code, and set the tax code type to V (input tax). Do not make any other settings for it. - Assign Tax Code to Company Codes

In this IMG activity, assign the tax code for purchasing documents to the company codes where it will be used. Only carry out this activity if you use condition-based excise determination.

Classify Condition Types - In this IMG activity, you specify which condition types you use for which sort of tax. Note that this only applies to condition types that you

use with the new excise determination method. The system uses this information when you create a document from  another one. For example, when you enter an incoming excise invoice from a  purchase order, or when you create an outgoing excise invoice from a sales order, the system determines the various excise duties in the excise invoice using the information that you have entered here. In addition, when you create a purchasing document, the system only uses the condition types that you enter here. - For taxes on purchases, use the condition types contained in the tax procedure. - For taxes on sales, use the condition types contained in the pricing procedures.

The standard system comes with sample settings for the tax calculation procedures and pricing procedures. Use these settings as a basis for your own. IMG > Logistics - General > Tax On Goods Movement > India > Account Determination

Define G/L Accounts for Taxes - In this IMG activity, you specify which G/L accounts you will use to record which taxes. Requirements - You have set up G/L accounts for each of the processing keys listed below. - Assign an account to each of the following posting keys. The accounts for VS1, VS2, and VS3 are used as clearing accounts during excise  invoice verification. - VS1 (basic excise duty) - VS2 (additional excise duty) - VS3 (special excise duty) - VS5 (sales tax setoff) - MWS (central sales tax) - MW3 (local sales tax) - ESA (service tax) - ESE (service tax expense)

Specify Excise Accounts per Excise Transaction - In this IMG activity, you specify which excise accounts (for excise  duty and CENVAT) are to be posted to for the various transaction types.  Enter all the accounts that are affected by each transaction type.  If you use sub transaction types, enter the accounts for each sub transaction type as well.

Transaction type UTLZ is used for determining accounts only while posting excise JVs and also if the payment of excise duty has to be done fortnightly.  The fortnightly CENVAT payment utility picks up the credit side accounts from the transaction types of GRPO, EWPO, and TR6C for determining the CENVAT and PLA accounts. There is no separate transaction type for fortnightly payment. 

Example: - Excise TT DC ind Account name - GRPO CR CENVAT clearing account - GRPO CR RG 23 BED account - GRPO DR CENVAT on hld account

Specify G/L Accounts per Excise Transaction - In this IMG activity, you assign the excise and CENVAT accounts to G/L  accounts. When you come to execute the various transactions, the system determines which G/L accounts to post to by looking at the:  - Excise group - Company code - Chart of accounts

Furthermore, if you want separate account determination settings within an excise group, you can also use sub transaction types.  Requirements You have already: - Defined the G/L accounts - Defined the excise groups - Maintained the transaction accounts Activities - For each excise group, assign the excise and CENVAT accounts to G/L accounts. For most businesses, one set of accounts will suffice for all transactions. Note : you need not remit the CENVAT to the excise department immediately, so maintain the credit account for transaction type DLFC as an excise duty interim account. This will be set off when you remit the duty.  Config setting needed to be done in order to get the Excise Details Screen in Material Master.

Even though this functionality is available in enterprise version, a small configuration step has to be made in Screen Sequences for Material Master.

Following document helps you to do this configuration. - Material Master à Logistics General  1. Go to IMG Define Structure of Data Screen for each Configuring the Material master Screen Sequence. 2. Select your screen sequence. Usually it would be 21. Select the same and click on Data Screen in the left frame. 3. Once the data screens are exhibited, select data screen no. 15, ie. SSq. 21and Scrn 15, which is “Foreign Trade: Import Data”. Select the same and click on Sub screens in the left frame. 4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select the same. Click on tab view sub screen and ensure that the sub screen is blank. 

5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 – 0001 and instead add SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.  6. Save the setting. 7. Create a Material Master and check whether in Screen Foreign Trade  – Import, Excise related sub screen appears. 

Step by Step MM-CIN Training DocumentationBy G.V.SHIVAKKUMAR, Tata Consultancy Services  

Topics covered:  

1.       Excise Transactions

2.       Capital Goods Purchase

3.       Returnable/ Non Returnable Gate Pass

4.       Import Purchase Cycle

5.       Vendor Return & Excise Reversal  

1        COUNTRY INDIA VERSION

1.1       Procedure for Claiming CENVAT for Raw Materials

1.1.1       Create the Purchase Order (ME21N)

Follow standard PO creation process  

1.1.2 Gate Entry (/cvs/gnt01)

Enter the PO No in the Field, and then all the items against the Po will be shown. Enter the Relevant Quantity, Enter the LR no, Vehicle No, Vendor Excise No, In the Text Enter the Transporter Name. Security ID Select from the Drop Down Menu.

1.1.3Goods Receipt to Unrestricted (Movement type: 101)  

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

a.     Enter the PO number and click on Execute button as shown below.

b.    Enter the Gate Entry No It will show the gate Entry Quantity of the in the Quantity tab in fieldQuantity in Unit of entry.  

c.     Enter receiving Storage Location in Where tab. Here check the stock type in which material is going to receive. If some text needs to be added regarding the goods receipt enter it in Textfield. If it subjected to batch Management then enter the Vendor Batch No as well as In-house batch no. If you want to Split the Quantity then Click on, Then Enter the Batch, Quantity etc. After doing all these thing go to Classification Enter all the Parameter.    

d.    Click on Item OK Checkbox – at this point of time system will show relevant information of excise for which Excise Invoice tab will appear in the Header screen as shown below, select Only Capture Excise Invoice on this tab and put the Vendor Excise Invoice no check the Excise group.  

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

 Press 

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

1.1.2       Post the Captured Vendor’s Excise Invoice  

Go to CIN transaction  

Menu Path: User menu  Indirect taxes  Procurement  Excise invoice  Incoming Excise invoice  Individual Processing  Capture/Display (J1IEX)  

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

b.    Enter Goods Receipt Document number generated in STEP 2 and press ENTER or Click on

Execute   button.  

c.     Following screen will appear as shown below.  

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

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

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

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

h.     Check the Quantity in Quantity tab  

i.      Check the Duty rate in Duty rate tab.  

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

Click here to continue...

Step by Step MM-CIN Training Documentation...Previous    

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

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

After Check Click on Simulate Button to check the G/L Entries.

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

1.1.3       Display Excise Invoice  

Menu Path: User menu  Indirect taxes  Procurement  Excise invoice  Incoming Excise invoice Individual Processing  Change/Display/Post/Cancel (J1IEX)  

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

1.2       Procedure for claiming CENVAT for Capital Items

1.2.1       Create the Purchase Order for Capital goods

Follow standard PO creation process and note the following things  

In the Account assignment category enter “F”.

The system will prompt to put the Order no as well as G/L account no in the account assignment tab.  

All the other details like VAT or CST you will have to maintain. Maintain the Tax code.

Save the purchase order.

1.2.2       Goods Receipt to Unrestricted (Movement type: 101)  

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

a.     Enter the PO number, Vendors Delivery Challan Number       

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

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

Follow above procedure for claiming modvat for raw material.  

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

Follow above procedure for claiming modvat for raw material.  

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

 f.    Che

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

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

l.      Press Enter, following screen will appear

1.2.3       Post the Captured Vendor’s Excise Invoice  

Go to CIN transaction  

Menu Path: User menu  Indirect taxes  Procurement  Excise invoice  Incoming Excise invoice Individual Processing  Capture/Display (j1iex)  

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

b.    Enter Vendor Excise no generated above.  

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

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

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

c.     Check the Quantity in Quantity tab  

d.    Check the Duty rate in Duty rate tab.  

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

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

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

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

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1.2.4Display Excise Invoice  

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

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

1.4    Sub-contracting without Payment of Excise Duty

When you issue materials to a subcontractor, you need to keep track of what materials you have issued and when they have to be returned by.

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

1.4.1 Create Sub-Contracting Purchase order with Reference of Purchase Requisition

To create a subcontract order, proceed as follows:

1.     Purchase Requisition will create automatically through Maintenance Order (IW31)

2.     Purchase Requisition will have the reference of Maintenance Order.

3.     Create Purchase Order with reference of Purchase Requisition (ME21N)

4. Release the Purchase Order (ME28)

4. Check and Save the Purchase Order. 

1.4.2 Create Gate Pass (Returnable/ Non Returnable) for the materials sent out for Fabrication/ Servicing/ Irradiation, etc…

1.     Enter Transaction code ZRGP on comm.-and field

2.     Select Create from Pull down list, Issue and Purchase Order from another pull down list.

3.     Enter the subcontracting purchase order number

4.     Enter all the details in the header

5.     After posting Gate Pass, to take Print Out, Choose Display  Issue  Gate Pass in ZRGPonly, here put Gate Pass No. & press Enter then choose Edit  Print, Here You can see Print Preview & then take print out.

1.4.3    Post Goods Receipt (MIGO) or Service Entry Sheet (ML81N)  

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

Enter the Purchase Order number & Create Service Entry Sheet as per the Method suggested in User Manual of Services.

1.4.4    Reconcile Gate Pass  

1. Enter the Transaction code ZRPP on command field

Enter the following data:

1.4.5    Gate Pass Reports

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

Enter Transaction code ZRGP on Command Field

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

b) Which challans you can make a re credit for

c) Quantity issued to Vendor

d) Quantity Received from Vendor

1.4.6 Change Gate Pass

Enter the Transaction Code ZRGP on Command Field

Enter the challan number select 

The challan is displayed.

1.4.7Display Gate Pass

Enter the Transaction Code ZRGP on Command Field

Enter the challan number select 

The challan is displayed.

SUBCONTRACTING  SCENERIO (SLITTING PURPOSE)

Crate a PO putting Item Category L. Put the Material which will come from the Vendor Site.

In the Component put the material, which you are providing to the Vendor.

Save the PO. Note the PO no.

Then Goto MB1B Transaction Click on to Purchase Order. Put the Purchase Order. Then Click on Adopt Details.  

Put The Batch No here, which you are going to provide to the Vendor. Then save it. Note Down the Material Document NO (490000000684)

 If it is Excisable then Create a Subcontracting Challan (J1IF01). In Subcontracting challan creation put the Material Document which is created during the MB1B  code(490000000684).

Enter the Following thing.

If the Material Assessable Value isn’t maintained then maintain it on   J1ID.

Then Post the Document.

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After Doing all these thing Repeat the Step for creating a Returnable Gate Pass, which has been already described. Then Perform the Gate Entry as Mentioned above. Do the GR in MIGO (T code). Put the Purchase order no.

Enter the Quantity, Batch no for the Incoming as well as Consumed Material.  

After doing all these thing Enter the vendor invoice No. Save the document. Material document will be generated. Note it down.

Reconciliation of Subcontracting Challan (J1IFQ)

Enter the Material Document which was created during GR (5000000274)  

1.5       Procedure for Claiming CVD benefit for Imported Material.

1.5.1 Create Purchase order for imports

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

Conditions tab  

Select the countervailing duty (CVD) condition .

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

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

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

Enter the custom vendor number in the vendor field.  

The vendor ships the goods to you.  

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

1.5.2       Entering invoices for Bill of Entry (MIRO)  

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

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

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

Header Data

Basic data tab

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

o Do not enter any other taxes.  

Details tab

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

Line Items

On the PO reference tab, enter data as follows:

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

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

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

      i.        Choose   .

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

    iii.        Select planned delivery costs.

    iv.        Select Deliveries and deselect Returns.

     v.        Choose    Adopt.

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

For each line item:

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

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

Enter a zero-rated tax code.

Choose   Simulate.

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

Choose    Post.

Note down the document number (CUSTOM Invoice number)

Perform The Gate Entry Process As per above Mentioned

1.5.3       Capturing Excise invoice (Bill of Entry) – (J1IEX)

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

In the top line:

Select Capture Excise Invoice

Select Purchase Order.

Enter the purchase order related to the bill of entry.

Choose 

A dialog box appears. 

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

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

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

Enter other data as required.

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

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

Capture The Excise Invoice By Entering the Vendor Excise Invoice no at the time of GR

Post Cenvat (J1iEX) By Entering the Invoice no

After doing it, do the Simulation

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

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1.6      Creation of Excise Registers – (J1I5)

You follow this procedure to create the excise registers.  

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

1.6.1       Updating of Registers (RG23 A).

The updating 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.            

1.6.1.1   Receipt updating of Registers (RG23A)  

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

On the selection screen, you specify

Which documents you want to cover:

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

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

Select movement type 101 and storage location.

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

Select register RG23 A, in the Registers group box

Select 

First select entries & click on Simulate    icon.

The signal becomes 

Then put tick in checkbox and select    for updating the register.

Register is updated and the screen looks as given below.

1.6.2       Data Extraction – J2I5

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

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

Select 

Following screen appears

1.6.3       Register printout – J2I6

You use this report to print out your excise registers.

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

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

Select    

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

Select    

Select suitable printer and print the register.  

1.7        Procedure for creating Excise Invoice for vendor returns           

1.7.1 Create Return Delivery Documents through MIGO  

Menu Path: Logistics  Materials Management  Inventory Management  Goods Movement MIGO-Goods Movement (MIGO)  

Indicates the business transaction that you want to enter in the system and give the Original GRN Document number  

Enter the Quantity to be return on Quantity Tab  

Enter the Reason for movement on where Tab and movement type is 122 for Return Delivery to vendor  

Select the Goods Issue Indicator IPD  

In Excise Invoice tab Header Level, only Part I Entry will be maintained.  

Check and Post the Document

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1.7.3 Create and Post Excise Invoice for vendor with ref of Return Delivery Documents 

Menu path: India localisation menu  Indirect taxes  Sales/Outbound Movements  Excise Invoice  For Other Movements  Excise Invoice for Other Movements (J1IS)  

Here Click on Create Icon first to create Outgoing Excise Invoice  

Enter the Reference document number, Reference document type, Document year, and Series group, Excise group and Vendor number.  

For the material the Net Assessable Value, Base Value and all Excise duties will pick automatically from Vendor’s Excise Invoice captured & posted already at the time of GRN.  

Press Enter, you will get next screen as below. Click on “Create text” icon to maintain following details

1.     LR No.

2.     Vehicle No.  

Here select each option to maintain the desired data as following & click on “Details” icon.  

Here maintain desired data as per your requirement & save the text

Same way maintain data for remaining parts & come back also & save the excise invoice.  

After saving you will get following result. Note down the Excise Invoice No.

To see the documents already posted, go to Display Mode  

Here Enter Internal Doc. Generated in background for the Excise Invoice created.

Here click on accounting tab to see the Accounting Entries generated.  

1.7.4 Print out of Excise Invoice (J1IV)  

Menu path: India localisation menu  Indirect taxes  Sales/Outbound Movements  Excise Invoice  For Other Movements  Post and Print (J1IV)  

Enter the Series group, Output type JEXC (Standard) and Excise Transaction Type is OTHR and Execute  

Select the Excise invoice number to get Print.  

Click Print Icon to get the Print out or click display icon to see the Print Preview.