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Former Member

Information Regarding CIN.

Hi,

Did anyone explain in brief regarding CIN (country India Version).

Please let me know the real time use of the same.

Regards,

Arjun.

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8 Answers

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    Former Member
    Aug 17, 2007 at 03:43 AM

    Hi refer below

    CIN CONFIGURATION

    http://help.sap.com/saphelp_470/helpdata/en/72/1535396503116fe10000000a114084/frameset.htm

    http://help.sap.com/saphelp_erp2005/helpdata/en/e5/077d5c4acd11d182b90000e829fbfe/frameset.htm

    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

    Use

    In this IMG activity, you maintain the data relating to your excise registrations

    Activities

    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.

    Activities

    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

    Use

    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

    Use

    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.

    Use

    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

    Use

    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.

    Activities

    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.

    Dependencies

    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

    Use

    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.

    Activities

    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.

    Dependencies

    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.

    Dependencies

    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.

    Dependencies

    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

    Use

    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.

    Activities

    • 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' indicator.

    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

    Use

    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

    Use

    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

    Use

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

    Activities

    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

    Use

    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.

    Activities

    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

    Use

    When you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.

    Prerequisites

    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.

    Activities

    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 indictor 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

    Use : 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.

    Activities: 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

    Use

    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

    Use

    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.

    Standard settings

    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

    Use

    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.

    Activities

    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

    Use

    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.

    Activities

    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

    Use

    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 config step has to be made in Screen Sequences for Material Master.

    Following document helps you to do this configuration.

    à Material Master à Logistics General

    1. Go to IMG Define Structure of Data Screen for eachàConfiguring 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.

    TRANSACTION CODES FOR INDIA

    Transaction Action

    J1I2 Prepare a sales tax register

    J1I3 Create outgoing excise invoices in batches

    J1I5 Update the RG 1 and Part I registers

    J1IEX Incoming Excise Invoices (central transaction)

    J1IEX_C Capture an incoming excise invoice (excise clerk)

    J1IEX_P Post an incoming excise invoice (excise supervisor)

    J1IF01 Create a subcontracting challan

    J1IF11 Change a subcontracting challan

    J1IF12 Display a subcontracting challan

    J1IF13 Complete, reverse, or recredit a subcontracting challan

    J1IFQ Reconcile quantities for subcontracting challans

    J1IFR List subcontracting challans

    J1IH Make a CENVAT adjustment posting

    J1IIN Create an outgoing excise invoice

    J1IJ Assign excise invoices to a delivery for sales from depots

    J1INJV Adjust withholding tax Item

    J1INREP Reprint a withholding tax certificate for a vendor

    J1IQ Year-End Income Tax Depreciation Report

    J1IR Download register data

    J1IS Process an excise invoice (outgoing) for other movements

    J1IU Process exemption forms

    J1IW Verify and post an incoming excise invoice

    J1IX Create an incoming excise invoice (without reference to purchase order)

    J2I8 Transfer excise duty to CENVAT account

    J2IU Remit excise duty fortnightly

    J2I9 Monthly CENVAT return

    J1IG Excise invoice entry at depot

    J1IGA Create additional excise entry at depot

    J2I5 Extract data for excise registers

    J2I6 Print excise registers

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    Former Member
    Aug 17, 2007 at 03:47 AM

    Hi,

    Give me your mail ID. I will forward you document related to CIN.

    Regards,

    Allabaqsh G. Patil

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    Former Member
    Aug 17, 2007 at 06:53 AM

    Hi mail sent,

    please check it.

    Best Regards

    Sainath

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    Former Member
    Aug 17, 2007 at 10:59 AM

    Hi Arjun,

    mail sent plz check.

    Best Regards

    Sainath

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    Former Member
    Aug 17, 2007 at 11:08 AM

    Hi,

    In addition to above please find herewith some more important notes on CIN :

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

    Basically Cin is divided in to two types: Difference between TAXINJ and TAXINN

    1. TAXINJ - Is a Routine Based that is used in the condition types. it will work on the logic what ever is there in the Routine.

    2. TAXINN: - Is a condition Record based. Means we have to create condition records for each and every condition type that you are going to use in the Pricing Procedure.

    Since Version 4.7 this TAXINN came into picture and start using this.

    And one of the important points is since 4.6 c CIN comes a separate package. But after introduction of 4.7 Version, CIN is coming the SAP Package itself and even in the Customer Master Record also we will find the CIN Icon.

    Basically 4 types of Pricing Procedures are used in CIN (TAXINJ) and are as follows:

    1.JDEPOT - Depot Sales

    2.JEXPOR - Export Sales

    3.JFACT - Factory Sales

    4.JSTKTR - Stock Transfer

    Country Version India comes with four pricing procedures (TAXINN) as follows:

    • JINFAC (Sales from manufacturing plants)

    • JINEXP (Export sales)

    • JINDEP (Sales from depots)

    • JINSTK (Stock transfers)

    TAXINJ & TAXINN are Tax Procedures in India. TAXINJ is old version & TAX INN is new version. Both has its own advantage & disadvantage.

    Upto 4.6C & partially 4.7 version of SAP, TAXINJ was used. TAXINJ is formula based calculation, in which we maintain the tax rate in Tax Code itself. The implication is that if say we are having product range such that say Excise rate differes for separate chapter ID, VAT, CST & permutation & combination of these, we require that many Tax Codes. For example:

    Tax Code: A1

    Taxes: 16% Excise Duty + 2% Education Cess + 12% VAT

    Tax Code: A2

    Taxes: 16% Excise Duty + 2% Education Cess + 8% VAT

    Tax Code: A3

    Taxes: 12% Excise Duty + 2% Education Cess + 12% VAT

    Tax Code: A3

    Taxes: 12% Excise Duty + 2% Education Cess + 8% VAT

    From 4.7 version onwards of SAP, TAXINN is being recommended & used. TAXINN is more user friendly & condition record based. In TAXINN, Tax Codes are statistical & of not much relevance, but are required to be maintained in condition record for taxes condition type. This makes Tax Codes simpler. The implication is that if say we are having product range such that say Excise rate differes for separate chapter ID, VAT, CST, we need not have the tax codes to that combination. For example:

    Tax Code: A1

    Can be used for any rate of excise duty, as tax code is only required to be maintained statistically in condition record.

    Tax Code: A2

    Can be used for any rate of VAT, as tax code is only required to be maintained statistically in condition record

    CIN determine the tax rates?

    CIN determines taxes based on the chapter-id of the material. There are 2 levels for rate determination. First the system will check if there is an exceptional rate available. If this is available then that rate is picked up. This rate could be for a material or material and customer combination. If there are no exceptions then the system looks for chapter-id of that material. The customer will have an excise tax status which along with the plant status will give a final excise status. Based on the excise status and the chapter-id the rates are maintained.

    Can I change the tax rates retrospectively?

    You can change the excise rates with any given validity period. After making the changes you will have to update the sales orders if the new tax rates have to be considered for future deliveries.

    Can I have a different rate for incoming and outgoing transactions for the same material?

    You can maintain exceptional rates for either incoming or outgoing based on the volume of exceptions data.

    What do I do if I have one chapter-id for incoming and another for outgoing and material code is the same?

    Along with exceptional rate maintenance you can maintain the chapter-id which should be used for the outgoing transactions. This chapter-id will be used only for copying on to the document and will not be used for rate determination.

    Can I have some more additional rates?You can maintain multiple excise indicators and based on that you can have additional

    rates.

    What will happen if I have multiple rates with overlapping validity periods for the same chapter-id and tax indicator?

    While picking up the rate for a given transaction system will check for that validity period where the valid from is the maximum but with in the pricing date and based on that pick up the rate applicable.

    How does CIN do the pricing?

    CIN uses R3 condition technique for pricing along with the pricing formulae. Details are available in the CIN knowledge bank. Template pricing procedures are provided for various sales scenarios.

    How many tax codes do I need?

    The number of tax codes will directly depend on how you want to account the sales tax. You can have CST and LST being determined by the same tax code if both can be accrued into the same account. Instead if you need separate account determination then you need separate tax codes. Also based on the tax concessions available you need to decide the various tax rates which need to be mapped.

    How do I open up more than one tax classification?

    CIN comes with default customization to open up the tax classificvation fields. The procedure is as follows. You need to define as many condition types as the number of tax classification fields. Tbe following procedure could be used.

    • SPRO - Sales and distribution -Basic functions-Taxes - Tax

    determination rules For Country 'IN' make entries as follows (This

    is precustomized in client 000 )

    - Seq 1 - UTXJ

    - Seq 2 - JTX1

    - Seq 3 - JTX2

    - Seq 4 - JTX3

    In SPRO - Sales and Distribution - Basic functions - Taxes

    Determine tax relevancy of master records

    How do I handle concessional excise?

    This is explained in SAP note 335577. Having opened up the new tax classification

    fields you might have to do the following

    --> Customer taxes maintain the possible values for JTX3 . Each unique value should denote one concession rate. For eg 1 - normal excise duty

    --> Maintain the JTX3 value against the form code in J1IT -Define Form types

    Maintain the customer tax classification in customer master if the customer has got

    excise exemption

    --> Maintain the excise indicator in J1ID for the customer and form code and this indicator gives the final indicator

    --> Forms database is used for determination of whether the form has arrived or not at the time of billing.

    --> The tax classification value gets defaulted from the customer master in the sales order. This can be changed in the header

    billing data if required

    How do I handle sales tax concessions?

    SPRO - Sales and distribution -Basic functions-Taxes - Tax determination rules For Country 'IN' make entries as follows (This is precustomized in client 000 )

    - Seq 1 - UTXJ

    - Seq 2 - JTX1

    - Seq 3 - JTX2

    - Seq 4 - JTX3

    -> Taxes - Determine tax relevancy of master records - Customer taxes maintain the possible values for JTX1 and JTX2. Each unique value should denote one concession rate. For eg 1 - 4% . Multiple forms could correspond to a single rate. JTX1 could be used for CST and JTX2 for LST. (UTXJ could be freely used by the customers as earlier )

    -> Maintain the tax classification in customer master as well as

    material master ( Sales org data 2)

    Build access sequences based on these new fields to point to the correct sales tax code You might have to have a new access based on region of delivering plant and region of ship to party

    How does CIN handle Indian VAT?

    VAT is handled separately & not linked to CIN..

    When I create a new tax code the excise lines are grey and I cannot maintain any value. What should I do?

    This is happening because the Excise conditions for sales are statistical in the tax procedure for India. So while creating a new tax code you need to open the tax procedure remove the statistical flag, maintain 100% for all excise conditions. After saving the tax code you need to make the conditions statistical once again.

    When I release the billing document to accounting there is an error that the account key is missing?

    This is happening because one or more lines in the tax procedure has a condition with a value but is not marked statistical. You need to check whether the conditions JMOD, JAED, JSED and JCES are marked statistical in the tax procedure. You cannot rectify the documents which are in error. The correction takes into effect only the future orders.

    When I release to accounting I get a message tax amount greater than tax base?

    This is happening because the tax base for some tax condition is falling less than the tax base amount. R3 does not allow the tax base to fall below the tax amount. You need to check which condition is giving the problem and based on that you can verify the tax procedure from-to settings.

    Do I need to maintain the chapter-ids for each plant or can it be left blank?

    If the same chapter-id is applicable for the material in all the plants then you need not maintain the chapter-ids for all the plants. You can leave the plant blank.

    When I try printing the excise register nothing comes up?

    Check whether you have maintained the opening balance for the item in the corresponding register (Table J_2IACCBAL for register account balances). Next check whether you have maintained the sapscript forms which are used for printing the registers in the CIN configuration. Finally check whether the extraction has been done for the period.

    When I try printing the excise invoice the list line turns red and nothing happens?

    This is becaue you have not maintained the condition record for output determination. You need to maintain the condition record for output determination at the sold to party level. Also for the documents created already you can go into Billing header – output and manually enter the output type j1io and save. Later the excise invoices can be printed.

    When I try to create RG1 issues entry the line turns red and nothing happens?

    This is happening because you are trying to create an issue entry and the stock in the register is not enough to do the issue. So you need to first update RG1 with the receipts and then go into the issues.

    I have extracted the register data once but now I have added more transactions. Can I extract once more?

    You can re-extract the data if you have added more transaction data for the given period.

    I am using another package for printing registers. Can I download the data once again?

    To prevent data inconsistency in the third party application CIN does not allow you to re download the register data once it has already been downloaded.

    What is the issue classification for RG1?

    You need to classify the RG1 entries as to whether they are receipts from manufacture or other receipts, clearances of various types so that they can be reported under the various headings as required by the Excise commissionerate.

    How do I maintain the opening balances for my register for the first time?

    You need load them manually at the initial data upload.

    How do I get the opening balance for every month?

    CIN calculates the opening balance for reporting purposes based on the transaction s extracted in any period.

    Are opening and closing balances of reghister available for me for reporting?

    You must not pick up the opening and closing balances that are calculated by reporting because they might get changed if some one does a re extract. So they need to be recomputed dynamically. They are not stored.

    Can I round the duty at the header level?

    Duty can be rounded off in CIN only at the item level. Due to technical reasons duty round off is not provided at the header level.

    When I create an excise invoice for exports what exchange rate will the system take?

    System picks up the exchange rate which is maintained in the CIN configuration data for the company code.

    With fortnightly utilization why do I need a part2 entry at the time of Excise invoice creation?

    With fortnightly utilization you do not create an entry in the CENVAT or PLA registers. Instead CIN keeps a separate Despatch register and generates continuous serial numbers in this register that can be used for future reconciliation.

    Do I need to have balances in my CENVAT accounts at the time of Excise invoice creation?

    At the time of excise invoice creation the debit is being made into an Excise payable account. So you need not have balances in the CENVAT account. You need to have enough money at the time of fortnightly utilization or you should have made a debit through TR6 into PLA.

    What are the exceptional reports possible?

    You can list all the billing documents for which excise invoice is not created. You can get a list of all excise invoices for which billing document has been cancelled., You can also have a report of all cancelled excise invoice for which the billing document is still open.

    Can I know which are the billing documents for which there is no excise invoice?

    Excise due list gives you all billing documents for which there is no excise invoice.

    Number range skipping happens for excise invoice. What could be the reason?

    CIN number ranges are defined as not buffered. You need to check if this has been changed. If skipping happens never reset the number range.. you must report the problem to SAP support immediately so that they can help you resolve this.

    While doing excise invoice creation I get an error message that system failure during locking. What can I do?

    While creating the excise invoice, at the time of saving system tries to lock the GL account that is getting updated with the new balances. S probably some one else could be changing the GL account data at that point of time. This is a very short phenomena and is meant to keep the data consistency.

    While doing depot sales invoice selection, list of invoices are not getting displayed. Why?

    You need to check the customization settings for LIFOor FIFO and the invoices of which period you have set. Also you need to check the excise group which is being used. System will show you only those excise invoices which belong to the same excise group, plant, storage location and batch.

    How do I handle the a-certificate at depot?

    A certificates come when the goods are removed after paying a provisional duty. When the final price is decided at the time of the order you need to pay the balance of the duty. There is no facility at the moment to calculate the differential duty. You have to make the payment manully using J1IS at the factory. Once this is done you can go back to the depot and capture this extra payment into your RG23D. This is recorded as a new serial no with in the original folio so that the RG23D register value tally. At the time of selection of excise invoice for sale you have the option to pick up the a-certificates for the excise invoice and then the additional duty gets added into the invoice amount. Also this is reflected in the RG23D register.

    Is it possible to add some additional duty on to the depot invoice with out A certificate?

    No you need an A certificate if you have to get an additional duty in RG23D invoice. Alternative is to write customer specific routines which are not supported by CIN.

    How do I handle the returns at depot?

    If there are returns to depot, that can be captured as any other receipt. You can enter the material document no of the return receipt and the data gets copid and you can copy into RG23D.

    How do I handle returns at factory?

    There are no D3 procedures at the moment which is mandated by the excise department. Legally you can take credit for all the receipts and then pay the duty when it goes out after repair or to another customer. You can Excise invoice without PO route to take the credit.

    When I do excise invoice creation, the system issues a message not enough balance. Why?

    This does not happen any more. There was a need felt that we should check the balance s even though we can pay the duty 15 days hence.

    I am not able to save the excise invoice text?

    You need to check the object type for the object id J1IN. this can be done by checking the data of the view J_1IVTTXOB. The editor mode has to be set as ‘Application text with SAVE key ‘.

    How can I include more text ids for the excise invoice?

    You can use the CIN IMG text maintenance option and add more ids with descriptors. For excise invoice creation the object is J1II. For depot receipts the object is J1IG and for depot sales it is J1IJ.

    Where does the excise invoice get the business area from?

    Excise invoice does not allow entry of business area. The business area in the billing document is automatically taken for the excise invoice.

    Where does the excise invoice get the profit center from?

    Excise invoice picks up the profit center from the billing document if it is available there. If it is not available there then it looks at the plant specific material master data and picks up if available.

    What will the system do if I have not received the form at the time of billing?

    The system will first check in the Form type maintenance whether the form is marked as required. This means that the form has to come by the time billing happens. Once you receive the form you need to enter it into the forms data base (J1IU) for the delivery document number. If the form receipt is not maintained then the billing will do a repricing and charge full tax for the particular excise duty.

    How does fortnightly utilization determine the accounts to be posted?

    There is no transaction type for determining the accounts of the fortnightly utilization. The credit account of the transaction type ‘DLFC ‘ is used as the debit account here. For the credit side we pick the debit accounts from the GRPO, EWPO and TR6C transactions. So it is mandatory that whether you use EWPO or not you should have maintained the account determination for all transaction tyes for a given excise group.

    What is transaction type ‘UTLZ’ used for?

    Transaction type UTLZ is used for determining the accounts when a JV is posted with an option of fortnightly payment.

    Can I have my own transaction types?

    Transaction types are used internally by CIN for various pruposes. So you cannot define your wn transaction types. Alternate account assignments can be done using sub transaction types.

    Where does RG1 get the data of packed/loose material ?

    Initially when you upload the balance in RG1 you need to mention the material form. Later the system assumes the same for for the same material code. If you need to dynamically change this then you can make use of the user-exit. A material can be marked either as packed or loose but not both.

    What will batch utilization of modvat do?

    Batch utilization is just an interface that helps you to complete the utilization of a set of documents in one step. This simply triggers individual utilization as a BDC so that the user interaction can be minimized.

    What is the number range used for export excise invoice?

    Export invoices uses the number range object j_1iexcexp where as the local invoices uses the number range j_1iexcloc. Even though customers are free to use the same number series now there is no bar from using separate series.

    Can I create a zero duty excise invoice?

    Zero duty invoices can be created both from sales as wellas using excise invoice other movements based on the business requirement. These invoices do not generate an accounting document.

    Is it possible to cancel an excise invoice with zero duty?

    There is no problem in canceling a zero duty excise invoice.

    Where does the billing document get the account for excise duty payable?

    The account determination rules of R3 billing is used for determining the account for the excise posting line in a billing document. The CIN customization has no role to play here.

    How does the stock transfer get the assessable value from?

    This is got using the condition base value formula. For this to happen you should have maintained the assessable value in CIN master data.

    How do I know whether SD route or mm route is followed for stock transfer?

    You need to check in SPRO – Materials Management – Purchasing – Set up Stock transport order – Assign delivery type/checking. For SD order this will be marked ‘A’

    Based on the route followed how do I create an excise invoice?

    If SD route is followed for stock transfer then you can use J1IIN to create excise invoice. If MM route is used for creating stock transport order then you need to use J1IS for creation of Excise invoice.

    How to configure stock transport order?

    Stock transport order is set up in SPRO- Materials management – Purchasing – Set up stock transport order. Here first you have to define the sales area and the default customer code. You have ato assign the order type to the checking rule. Finally you need to maintain the delivery type for the order type.

    I cannot create a proforma billing document for a replenishment delivery. What has gone wrong?

    Normal R3 setting does not allow a billing document to be created for a delivery type NL. You need to change the customization settings of the item category type NLN so that it becomes relevant for billing.

    When I do a receipt at the depot from my factory how do I give the excise invoice number?

    If the excise invoice already exists in the R3 system then in the detail screen of RG23D receipt you can directly enter the internal document number of the excise invoice. This will automatically allow the entrie challan details to be copied.

    Should I receive the full quantity at depot or transit loss is allowed?

    You can receive some goods in the depot which is less than the dispatched. You have the option to enter the receipt quantity as well as the challan quantity at the time of RG23D receipt.

    I want to calculate the excise duties at the time of export sales. What should I do?

    There is a calculate tax button on the utilization screen of Excise invoice creation.. This option will calculate the taxes for an export invoice.

    Can I use my own layout for printing sales excise invoice?

    Yes. If you are using your own layout then you need ot maintain this in the output determination procedure of billing documents for the output type j1i0.

    Can I use my own layout for printing Excise invoice other movements?

    Excise invoice other movements picks up the report layout from the output type ZEXC which has been maintained against the SD output determination – Sales documents. You can maintain your own layouts here and then they will be used for printing.

    Can I use my own layouts for register printing?

    Yes you can have your own layouts. You need to maintain the same in the CIN customization against the sap script form maintenance.

    Can I change the posting date at the time of fort nightly utilization?

    You can enter the posting date as per which you want the system to do the fortnightly

    posting.

    Should I keep the fi/mm period open at the time of posting fort nightly utilization?

    The current period alone should be open at the time of fortnightly utilization. It is also required that both MM as well as FI periods need to be open.

    When I run fortnightly utilization the system is showing zero balance even though there is some balance in the GL account?

    The balances for utilization are picked up in CIN only when the MM period closing is done for the previous period. For eg. If you r posting date is 5th Dec and the November period is still open system will show zero balance.

    Can I change the document type for the accounting document created at the time of excise invoice creation?

    Document type for excise invoice utilization is defined with in CIN customization at the company code level. You can use your own document type.

    Can I post the fort nightly utilization for individual excise invoices?

    You can post the fortnightly utilization for individual invoices also. System give a message that the CENVAT utilization is already doen. But this is configurable and could be made a warning.

    Can I reverse the fortnightly utilization done?

    No you cannot reverse the posting doen with fortnightly utilization. Simulate option is provided in this option for the user to check whether things are ok so that the chances of error are minimal in the actual run.

    Can I have excise rates more than 100%?

    Yes you can have excise rates higher than 100% since some of the tobacco items carry higher excise rates.

    How do I map the tax classification to form types?

    You can maintain it along with Form type definitions in CIN IMG.

    Can I decide not to generate folio numbers at the time of RG23D creation?

    Yes you can keep the customization option at the Excise group level blank and also you can leave the user-exit open.

    What will happen when I cancel a RG23D selection for sales already made?

    If you are canceling a selection before posting then the RG23D register the record will be removed. But if you have already done the posting then the RG23D record is marked cancelled and the balance in the original invoice is inflated by an equivalent amount.

    Why there is no transaction type for J2IU?

    Transaction type is used for account determination by CIN . This is an internal entity for CIN and has no relevance to the business process. Since there is no account determination need for J2IU there is no transaction type.

    What should be my accounting entry in SD ?

    For Factory Sale

    During Billing Document

    Customer Account Dr.

    Sales Account Cr.

    Cenvat Suspense Account Cr.

    During Excise Invoice Creation

    Cenvat Suspense Account Dr.

    Cenvat payable Cr.

    For TR6C Challan

    PLA Account Dr.

    PLA on hold Account Cr.

    During Fortnightly Utilization

    Cenvat payable Dr.

    Cenvat Account Cr.

    PLA Account Cr.

    For Stock Transfer through SD

    No Accounting entries for Performa Billing Document

    During Excise Invoice Creation

    Cenvat Suspense Account Dr.

    Cenvat payable Cr.

    For TR6C Challan

    PLA Account Dr.

    PLA on hold Account Cr.

    During Fortnightly Utilization

    Cenvat payable Dr.

    Cenvat Account Cr.

    PLA Account Cr.

    Please Reward If Really Helpful,

    Thanks and Regards,

    Sateesh.Kandula

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    Former Member
    Aug 17, 2007 at 11:14 AM

    dear arjun,

    Basically CIN is divided in to two types:

    1. TAXINJ - Is a Routine Based that is used in the condition types. it will work on the logic what ever is there in the Routine.

    2. TAXINN: - Is a condition Record based. Means we have to create condition records for each and every condition type that you are going to use in the Pricing Procedure.

    Since Version 4.7 this TAXINN came into picture and start using this.

    And one of the important points is since 4.6 c CIN comes a separate package. But after introduction of 4.7 Version, CIN is coming the SAP Package itself and even in the Customer Master Record also we will find the CIN Icon.

    Basically 4 types of Pricing Procedures are used in CIN and are as follows:

    1.JDEPOT - Depot Sales

    2.JEXPOR - Export Sales

    3.JFACT - Factory Sales

    4.JSTKTR - Stock Transfer

    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

    Use

    In this IMG activity, you maintain the data relating to your excise registrations.

    Activities

    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.

    Activities

    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

    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.

    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 leviable 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 leviable 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

    Use

    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

    Use

    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 Utilization

    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.

    Use

    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

    Use

    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.

    Activities

    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.

    Dependencies

    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 credits

    Maintain Excise Groups

    Use

    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.

    Activities

    1. Create one excise group for each set of registers that you need to keep.

    1. Assign the excise groups to plants.

    2. Maintain whether this Excise group is for a depot or not.

    3. 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 avail 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 creates' 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.

    Dependencies

    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.

    Dependencies

    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.

    Dependencies

    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 Groups

    Use

    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.

    Activities

    • 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' indicator.

    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

    Use

    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

    Use

    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

    Use

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

    Activities

    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

    Use

    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.

    Activities

    Customizing

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

    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

    Use

    When you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.

    Prerequisites

    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 access from the SAP EasyMaintenance screen, which you can Master Data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.

    Activities

    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 indictor 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

    Use: 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.

    Activities: 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

    Use

    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

    Use

    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.

    Standard settings

    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

    Use

    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.

    Activities

    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

    Use

    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.

    Activities

    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

    Use

    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 config step has to be made in Screen Sequences for Material Master.

    Following document helps you to do this configuration.

    Data 1. Go to IMG Define Structure ofLogistics General forMaterial Master Configuring the Material master Screen Sequence.Screen each

    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 Subscreens 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 subscreen and ensure that the subscreen 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 subscreen appears.

    Transaction

    Action

    J1I2

    Prepare a sales tax register

    J1I3

    Create outgoing excise invoices in batches

    J1I5

    Update the RG 1 and Part I registers

    J1IEX

    Incoming Excise Invoices (central transaction)

    J1IEX_C

    Capture an incoming excise invoice (excise clerk)

    J1IEX_P

    Post an incoming excise invoice (excise supervisor)

    J1IF01

    Create a subcontracting challan

    J1IF11

    Change a subcontracting challan

    J1IF12

    Display a subcontracting challan

    J1IF13

    Complete, reverse, or recredit a subcontracting challan

    J1IFQ

    Reconcile quantities for subcontracting challans

    J1IFR

    List subcontracting challans

    J1IH

    Make a CENVAT adjustment posting

    J1IIN

    Create an outgoing excise invoice

    J1IJ

    Assign excise invoices to a delivery for sales from depots

    J1INJV

    Adjust withholding tax Item

    J1INREP

    Reprint a withholding tax certificate for a vendor

    J1IQ

    Year-End Income Tax Depreciation Report

    J1IR

    Download register data

    J1IS

    Process an excise invoice (outgoing) for other movements

    J1IU

    Process exemption forms

    J1IW

    Verify and post an incoming excise invoice

    J1IX

    Create an incoming excise invoice (without reference to purchase order)

    J2I8

    Transfer excise duty to CENVAT account

    J2IU

    Remit excise duty fortnightly

    J2I9

    Monthly CENVAT return

    J1IG

    Excise invoice entry at depot

    J1IGA

    Create additional excise entry at depot

    J2I5

    Extract data for excise registers

    J2I6

    Print excise registers

    rewards if it helps

    siva

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  • avatar image
    Former Member
    Aug 17, 2007 at 12:09 PM

    hi CIN gurus

    I ma facing a problem Whil capturing excise at depot. error message appearing as Excise invocie no matching lines.

    This problem occurs even after entering appropriate internal number in J1IG.

    And this problem is occuring randomly .

    This occurs for STOCK TRANSFERS FROM DEPOT TO DEPOT.

    CAN ANYONE COME OUT WITH SUGGESTION

    rgds

    BJ

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  • avatar image
    Former Member
    Aug 17, 2007 at 12:17 PM

    Hi,

    mail sent to check it out.

    reward points if solution helps.

    regards,

    Allabaqsh G. Patil

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