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Import Purchase

Dear Experts,

Can any body please explain Import Purchase Scenario in detail, With Custom duties.

As i am facing problem with duty capturing and posting in Excise invoices.

CVD, ECESS on CVD and SHECESS on CVD are not getting updated in Part1 while capturing excise invoice with reference to Import Purchase Order.

So please brief me on the issue, if configuration is missing please guide me on that.

Thanks in Advance !!!!

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3 Answers

  • Best Answer
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    Former Member
    Sep 22, 2008 at 04:48 AM

    Hi,

    The process is first Import PO, which includes all the custom related duties.

    then Miro for planned delivary costs, which are related to customs only.

    Then capture Excise wrt to BOE number/ MIRO doc. number & date. then do GRN, & Post the Excise . Now again do MIRO for goods.

    But the configuration u may miss is the Excise default settings, check the defaults settings properly.

    Pandari

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    • hi

      in ur pricing u have to create following

      JCDB IN: Basic Custom Duty

      JCV1 IN : CVD

      JECV IN : Ed Cess on CVD

      J1CV IN : H&SECess on CVD

      JEDB IN : Ed Cess on BCD

      JSDB IN : H&SECess on BCD

      JADC Additional Duty of Custom

      JCV1, JECV, J1CV and JADC will go to Excise MODVAT Accounts and JCDB, JEDB and JSDB will get loaded on inventory.

      In M/06, for all above conditions, keep following controls;

      Cond. class A (Discount or surcharge) Plus/minus A (Positive)

      Calculat.type A (Percentage)

      Cond.category B (Delivery costs)

      Activate "Currency Conversion" and "Accrual"

      now for setoff

      maintain the following conditions in excise default settings.

      JCV1, JECV, JADC

      path: spro>logistic general >tax on goods movements>india >basic settings>determination of excise duty >maintain excise defaults >

      along with ur taxprocedure maintain these conditons in the specified fields

      JCV1 in CVD condition field.

      JECV in ECS conditon field.

      JADC in ACD conditon field.

      in case of secess on CVD, no need to maintain.

      it is hardcodded in the standard

      Vendor in GR 2 (Entry always possible)

      Import scenario

      1.Create material master of import goods.

      2.Create vendor master record of import vendor and Customs clearing vendor.

      3.Maintain CIN settings.

      4.Maintain J1id.

      5.Maintain Pricing procedure SAP standard JIMPOR..,maintain required conditions..JCDB,JCV1...

      6.Assign the schema to respective import vendor in Purchasing view of VMR.

      7.Create import PO ,check in conditions of JCDB, JCV1 the customs clearing vendor(Indian vendor) and percentage is assigned..This can be done by In condition tab select condtion then click on display,then enter.

      Save the PO.

      8.MIRO --Capture Bill Of Entry.(Commercial Invoice No.,).Customs clearing first .Here CVD will b converted to BED.

      9.Capture Excisse invoice--j1iex.

      10.MIGO.

      12.Post Excise Invoice.

      13.MIRO...Payment to vendor(import vendor)

      regards

      kunal

      award if helpful

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    Former Member
    Sep 22, 2008 at 04:44 AM

    Experts,

    Also please provide me, configuration settings in CIN for Import Purchase.

    Thanks in Advance

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  • Sep 22, 2008 at 04:46 AM

    Hi,

    What is CIN?

    CIN Means Country India Version

    In Indian Taxing procedure, Excise Duty plays a vital role in manufacturing cenariou2019s. Excise related configuration is known as CIN configuration. CIN Configuration is a topic in itself.

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

    Country Version India comes with four pricing procedures as follows:

    JINFAC (Sales from manufacturing plants)

    JINEXP (Export sales)

    JINDEP (Sales from depots)

    JINSTK (Stock transfers

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

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

    Enter each of your excise registrations, specifying a four-character code for each Excise Registration Ids

    In this activity, you maintain excise registration IDs. You create one ID for each of your business's excise registrations.

    For each excise registration in your business create a registration ID, and state:

    Which taxes the registration covers (additional excise duty, special excise duty, and cess) Fields for any taxes that are not covered will be hidden in transactions involving excise duty.

    The maximum number of items to be printed on each excise invoice

    Whether you are allowed partial CENVAT credits

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

    ECC Number: Specifies the organization's ECC number.

    Excise Registration Number: A number assigned to each premises or location that has registered as a manufacturer with the excise authorities.

    Every entity with an excise registration number is required to keep its own excise books.

    Excise range: Specifies the excise range in whose area the excise registration is located.

    Excise Division: Specifies the excise division in whose area the excise registration is located.

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

    Indicator for confirming, AED usage Additional Excise duty Percentage.

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

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

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

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

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

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

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

    Maintain Company Code Settings.

    In this IMG activity, you maintain the data relating to your company codes.

    Document Type for CENVAT Postings.

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

    Indicator for providing debit account overwriting

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

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

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

    Days to be considered for excise invoice selection Number of days from document date for excise invoice selection.

    Example - If the value of this field is 20 and today is 28-03-97. The excise invoice selection will show the related invoices only for the period 08-03-97 to 28-03-97.

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

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

    Indicator for item level excise duty round off - This indicator is to be used for deciding whether Item level excise

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

    Rounding off of Excise duty for outgoing excise invoice - You can round off the Excise amount to be paid during an outgoing

    Excise invoice by marking this indicator as 'X'. The rounding is done at the item level for each item where the amount is greater than 1 Rupee.

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

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

    Exchange rate type - Key representing a type of exchange rate in the system.

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

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

    Maintain Plant Settings - In this IMG activity, you maintain excise information relating to your plants.

    Plant Settings - In this activity, you maintain excise information relating to your plants.

    For each plant:

    Specify whether it is a manufacturing site or a depot.

    Assign it an excise registration ID. - You can assign the same ID to more than one plant, if required.

    Depot - Indicates that the plant in question is a depot. - Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and invoice generation.

    Number of goods receipt per excise invoice.

    Multiple GR for one excise invoice, Single credit

    Multiple GR for one excise invoice, multiple credit

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

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

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

    If your company has only one set of excise registers, then you need to maintain only one excise group.

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

    2. Assign the excise groups to plants.

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

    If you receive only one consignment for an Excise challan then you can leave GR's per EI as blank. If you receive multiple GR's for a given Excise challan and would like to avail multiple credit mark the GRs per EI as 'Multiple GR's for one excise invoice, multiple credit'. Alternatively if you want to availa the credit only after all the goods receipts have been made mark it as ' Multiple GR for one excise invoice, single credit'.

    4. If you want to automatically create Excise invoice during Sales cycle at the time of billing the tick the indicator 'Create EI'

    5. During depot sales if you do not want to do RG23D selection and posting separately and would like to complete RG23D selection in one step mark the indicator 'RG23D Auto post'. This will post the selected records into RG23D automatically. You cannot cancel the selection later.

    6. If the indicator 'Default GR qty' is marked system will default the Excise challan quantity on to the Goods receipt if the Excise invoice number is given in the pop-up.

    7. If the indicator 'Folio no create' is marked system will generate Folio numbers for RG23D during receipt of excise invoice into depot.

    8. 'Automatic posting' when ticked will post the Excise invoice other movements automatically along with creation in single step.

    9. 'Create Part1 for Block Stock' when marked will create a Part1 during the receipt of material into Blocked stock .

    10. 'Create Part1 for STO' when marked will create a Part1 during the receipt of material through inter plant transfers.

    11. 'Create Part1 for consumption stock' when marked will create a Part1 during the receipt of material into consumption stock. Excise Group Governs which set of excise registers a business transaction will be included in.

    Following is the relation between excise group, plant and registration. - In define excise groups in Customizing.

    Then, in transactions involving excise duty, for example, when you post a vendor's excise invoice, you specify which excise group you are using. This information tells the system which G/L accounts to post the excise to. At the end of the period, when you come to prepare your excise registers, you create different sets for each excise group.

    Indicates that the plant in question is a depot. - Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and invoice generation.

    GR Per Excise Invoice

    Multiple GR for one excise invoice , Multiple credit

    Multiple GR for one excise invoice , Single Credit

    Create Excise Invoice Automatically - Instructs the system to automatically create a Sales and Distribution (SD) excise invoice immediately you create a commercial invoice or a pro forma invoice.

    The excise invoice is created in the background. - If you want to make use of this function, you must also define the

    default plant, excise group, and series groups in Customizing for Sales and Distribution (SD), by choosing Excise Group - Series Group Determination.

    RG23D Sales Creation and posting option - RG23D Automatic Option if selected will create Depot excise invoice by posting the selection of excise invoices in single step. If this is not selected then you need to separately do RG23D selection

    followed by PGI and then RG23D verification and posting. If you need automatic posting of RG23D selection then the Post Goods Issue should have been completed before running RG23D selection.

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

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

    Also we can set indicator for creation of part 1 for:

    Blocked stock

    Stock transport order

    Consignment stock

    Maintain Series Group - In this IMG activity, you define the different excise series groups within your company. Series groups allow you to maintain multiple number ranges for the outgoing excise documents. Based on excise regulations and exemptions from the authorities you can maintain multiple number series for outgoing documents. But each of these series has to be declared to the excise authorities.

    Define excise series groups based on type of outgoing document

    Assign series group to excise registration ID

    If no financial postings are required for an Excise invoice in this seris group then you tick the 'No utilization' indicator.

    If the CENVAT has to be paid immediately and you need not wait for the Fort nightly payment then mark the 'Immediate Utilization' Iindicator. Example - You could define two series groups, group 001 for excise invoices, and group 002 for 57 F4 documents.

    No account postings for CENVAT in sales cycle

    No utilization Flag

    If you do not need any CENVAT utilization for an excise invoice but would like to just generate an excise invoice then you need to mark this indicator.

    If the flag is checked then system will create an Excise invoice in the given Series group but there will not be any account postings or Part2 postings.

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

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

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

    Maintain Excise Duty Indicators - In this IMG activity, you maintain the excise duty indicators.

    IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty > Select Tax Calculation Procedure

    In this IMG activity, you specify which tax procedure you want to use for determining excise duties and sales taxes on input materials in India.

    If you use condition-based excise determination, use a copy of the tax procedure TAXINN.

    If you use formula-based excise determination, use a copy of the tax procedure TAXINJ.

    This tax procedure also supports condition-based excise determination, so that you can work with both concurrently.

    We strongly recommend that new customers use condition-based excise determination. Note that once you have started using a tax procedure, you cannot switch to another one, otherwise you will not be able to display old documents.

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

    If you use condition-based excise determination, fill out the CVD cond. field and leave all the others blank.

    If you use formula-based excise determination, fill out all of the fields as follows:

    Enter the tax procedure and the pricing conditions that are relevant for excise tax processing.

    Specify the purchasing and sales conditions types used for basic excise duty, additional excise duty, special excise duty, and cess.

    Specify the conditions in the sales order that are used for excise rates.

    Specify the countervailing duty condition type used for import purchase orders

    ***CIN CONFUGURATION***

    1.1 Maintain Excise Registration

    SAPSPRO Basic settingIndia  tax on Goods Movements Logistics general Ref. IMG Maintain Excise Registrations

    APPLICABLE

    1.2 Maintain Company Code Settings

    tax on Goods Logistics general  SAP Ref. IMG SPRO Maintain Company Code Basic setting India Movements Settings

    APPLICABLE

    1.3 Maintain Plant Settings

    SAP Ref.SPRO  Basic setting India  tax on Goods Movements Logistics general IMG Maintain Plant Settings

    APPLICABLE

    1.4 Maintain Excise Groups

    SPRO BasicIndia  tax on Goods Movements Logistics general  SAP Ref. IMG  Maintain Excise Groupssetting

    APPLICABLE

    1.5 Maintain Series Groups

    India  tax on Goods Movements Logistics general  SAP Ref. IMG SPRO Maintain Series GroupsBasic setting

    APPLICABLE

    1.6 Maintain Excise Duty Indicators

    tax on Goods Logistics general  SAP Ref. IMG SPRO Maintain Excise Duty Basic setting India Movements Indicators

    APPLICABLE

    1.7 Maintain Sub transaction Type with Text

    India  tax on Goods Movements Logistics general  SAP Ref. IMG SPRO Maintain Sub transaction Type with TextBasic setting

    APPLICABLE

    1.8 Determination of Excise Duty

    tax Logistics general  SAP Ref. IMG SPRO Select Tax Calculation Determination of Excise DutyIndia on Goods Movements Procedure

    APPLICABLE

    1.9 Maintain Excise Defaults

    SAP Ref.SPRO Determination of ExciseIndia  tax on Goods Movements Logistics general IMG Maintain Excise DefaultsDuty

    APPLICABLE

    1.10 Condition-Based Excise Determination

    tax on Goods Logistics general  SAP Ref. IMG SPRO Define Tax Code for Condition-Based Excise DeterminationIndia Movements Purchasing Documents

    APPLICABLE

    1.11 Condition-Based Excise Determination

    tax on Goods Logistics general  SAP Ref. IMG SPRO Assign Tax Code to Condition-Based Excise DeterminationIndia Movements Company Codes

    APPLICABLE

    1.12 Classify Condition Types

    SAPSPRO Condition-BasedIndia  tax on Goods Movements Logistics general Ref. IMG Classify Condition TypesExcise Determination

    APPLICABLE

    1.13 Maintain Chapter IDs

    tax on Goods Logistics general  SAP Ref. IMG SPRO Maintain Chapter ids Master dataIndia Movements

    APPLICABLE

    1.14 Assign Users to Material Master Screen Sequence for Excise Duty

    SPRO  Master dataIndia  tax on Goods Movements Logistics general SAP Ref. IMG Assign Users to Material Master Screen Sequence for Excise Duty

    APPLICABLE

    1.15 Specify Excise Accounts per Excise Transaction

    tax on Goods Logistics general  SAP Ref. IMG SPRO Specify Excise Accounts per Excise Account determinationIndia Movements Transaction

    APPLICABLE

    1.16 Specify G/L Accounts per Excise Transaction

    tax on Goods Logistics general  SAP Ref. IMG SPRO Specify G/L Accounts per Excise Account determinationIndia Movements Transaction

    APPLICABLE

    1.17 Incoming Excise Invoices

    SAPSPRO BusinessIndia  tax on Goods Movements Logistics general Ref. IMG Incoming Excise InvoicesTransactions

    APPLICABLE

    1.18 Define Processing Modes Per Transaction

     Logistics general  SAP Ref. IMG SPRO Define Processing Modes Business TransactionsIndia tax on Goods Movements Per Transaction

    APPLICABLE

    1.19 Define Reference Documents Per Transaction

    tax on Goods Logistics general  SAP Ref. IMG SPRO Define Reference Documents Per Business TransactionsIndia Movements Transaction

    APPLICABLE

    1.20 Maintain Rejection Codes

    SAPSPRO BusinessIndia  tax on Goods Movements Logistics general Ref. IMG Maintain Rejection CodesTransactions

    APPLICABLE

    1.21 Specify Which Movement Types Involve Excise Invoices

    Logistics SAP Ref. IMG SPRO Specify Which Business TransactionsIndia  tax on Goods Movementsgeneral Movement Types Involve Excise Invoices

    APPLICABLE

    1.22 Outgoing Excise Invoices

    tax on Goods Logistics general  SAP Ref. IMG SPRO Assign Outgoing Excise Invoices  Business TransactionsIndia Movements Billing Types to Delivery Types

    APPLICABLE

    1.23 Maintain Default Excise Groups and Series Groups

     Logistics general  SAP Ref. IMG SPRO  Outgoing Excise Invoices  Business TransactionsIndia tax on Goods Movements Maintain Default Excise Groups and Series Groups

    APPLICABLE

    1.24 Subcontracting Attributes

    tax on Logistics general  SAP Ref. IMG SPRO Subcontracting Subcontracting Business TransactionsIndia Goods Movements Attributes

    APPLICABLE

    1.25 Maintain Movement Type Groups

    SPRO BusinessIndia  tax on Goods Movements Logistics general SAP Ref. IMG Subcontracting SubcontractingTransactions Attributes

    APPLICABLE

    1.26 Utilization Determination

    SAPSPRO BusinessIndia  tax on Goods Movements Logistics general Ref. IMG Utilization UtilizationTransactions Determination

    APPLICABLE

    1.27 Specify SAP script Forms

    SPRO BusinessIndia  tax on Goods Movements Logistics general SAP Ref. IMG Specify SAP script Excise RegistersTransactions Forms

    APPLICABLE

    1.28 Number Ranges

     SAP Ref. IMG SPRO Number ToolsIndia  tax on Goods MovementsLogistics general Ranges

    APPLICABLE

    1.29 Message Control

     SAP Ref. IMG SPRO Message ToolsIndia  tax on Goods MovementsLogistics general Control

    APPLICABLE

    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 challan

    J1IFR

    List subcontracting challan

    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

    Regards

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    • Former Member

      Dear, Thanks for your immidiate reply,

      But my querry is specific on Import purchase scenario. so pls provide me any solution on that. CIN Basics i know vey well.

      Thanks in Advance