Cin Related

[Former Member]

Hi,

Can any please explain the difference between capturing and utilisation.

any transaction code are there for this.

explanation needed with an example.

Thanks

Kuntla

[Former Member]

answer

[Former Member]

Country India Version (CIN) :

In India excise duty is a tax on the manufacture of goods levied when goods leave the place of manufacture.

Manufacturer procures raw material from some vendor. As mentioned whenever this material is procured, duty has been paid to the government. Now manufacturer when despatches the finished goods, he again pays the duty. This leads to double taxation. To take care of this there is certain rules / mechanism introduced by government.

Manufacturer can set off the duty paid on input materials against their output /finished product, a process known as value added tax (CENVAT)

e.g. Raw material cost is say Rs.100/- and say duty paid on it is Rs.14 (assuming 14% duty rate). Now when finished product is dispatched by manufacture say at Rs. 200 Here again he need to pay Rs 28 (again assuming the same duty rate 14%).

Now instead of paying Rs.28 as duty to government, he can pay Rs. 14 to government and Rs.14 can be adjusted against duty already paid on raw material.

For this, when manufacturer receives raw material, he need to capture Rs 14 seperately (duty amount paid by supllier). This is known as capturing.

Later on credit can be taken (adjusted against subsequent dispatch of material) So when you despatch finished goods worth Rs. 200 as in this example, you can utilize (adjust Rs. 14/- and pay additional Rs .14/- only. This is the process of utilization in short.

I think we will not get into detail rules but this is the basic concept and clearly explains with example the concept of capture and utilization.

In SAP there are transaction code for the same. When you receive material in factory (manufacturing plant) T code for capturing ED (excise duty is J1IEX and J1IG for receipt of material at Depot.

Simillarly there is T code for payment of Ed (excise duty) / posting of ED amount at the time of despatch of finished goods from factory is J1IIN and J1IJ from depot.

System automatically proposes to debit from the account where amount is already captured. Once there is no balance then you need to pay from other account. (known as PLA account - we will not get into these details)

[Former Member]

Initial Capturing for Excise Duty is when Excise Invoice is created through T.Code: J1IIN (for SD) & T.Code: J1IEX (for MM). Next level of Capturing is through T.Code: J1I5.

Regarding utilization please check the link below:

Link: http://help.sap.com/

Path: SAP Best Practices --> Baseline Packages --> Based on SAP ECC 5.00 --> Select Country: for eg, Localized for India --> Technical Information --> Building Blocks --> Select Country for eg, India -->

Topic: Periodic Excise Processing

Regards,

Rajesh Banka

[former_member204513]

Dear Kuntla,

Capturing

Example :-

In Country Version Taiwan, Financial Accounting (FI) is an essential component for capturing value-added tax (VAT) information at business place level, handling different tax types, posting vendor and customer documents, and creating VAT returns for each of your business places, in compliance with VAT laws in Taiwan.

Excise Duty Utilization

Use

When you create an excise invoice, the system allows you to display the information about the excise duty, including which CENVAT accounts the excise will be debited to. To access this function, choose .

If a company defaults in the fortnightly payment of CENVAT, the excise collectorate can enforce an immediate payment of excise. Alternatively, you may have excess CENVAT credit and want to pay the duty immediately and not wait for a fortnight. This is also the case for some export removals where you claim the refund from DGFTA, in which case you need to pay the duty immediately.

Prerequisites

You can enable the immediate utilization of CENVAT, in Customizing for Logistics u2013 General, by choosing Taxes on Goods Movements --> India --> Basic Settings --> Maintain Series Groups.

Features

The information is shown in two group boxes:

Excise details

This shows you the excise invoice type, which you can change if necessary by choosing . It also shows you how much excise duty will be charged on the sale.

Balance utilization

This shows you which CENVAT accounts the excise duty will be debited to.

The system automatically proposes which CENVAT accounts it is to debit the excise duty to. It first takes the RG 23 accounts, and if there is not enough credit to cover it, it debits the remainder to the personal ledger account (PLA). The cess component of excise can only be taken from the PLA.

If immediate utilization is active for a series group, you can change the default utilization proposal. You can decide from which register to pay the amount. When you save the invoice, the system generates Part II entries in the appropriate registers. These excise invoices are not listed further during fortnightly payment of CENVAT.

If immediate utilization is off for the series group, the system proposes the excise duty values directly in the RG 23A fields, but the postings are made to intermediate accounts for excise duty. The system does not create any Part II entries. Entries are posted into a dispatch register. When you then run the fortnightly payment program, the system picks up these invoices and allows payment of CENVAT.

Capturing Excise Invoices for Bills of Entry

From the SAP Easy Access screen, choose Indirect Taxes> 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.

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.

Save the excise invoice.

I hope it will clear for you ,

Regards,

Murali.