Source: https://www.scribd.com/document/87145585/CIN-Configuration
Timestamp: 2016-12-10 22:49:12
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Matched Legal Cases: ['art1', 'art1', 'art1', 'art1', 'art1', 'art1', 'art 1', 'art2']

BrowseInterestsBiography & MemoirBusiness & LeadershipFiction & LiteraturePolitics & EconomyHealth & WellnessSociety & CultureHappiness & Self-HelpMystery, Thriller & CrimeHistoryYoung AdultBrowse byBooksAudiobooksArticlesSheet MusicBrowse allUploadSign inJoinCIN CONFIGURATIONWhat is CIN? CIN Means Country India Version In Indian Taxing procedure, Excise Duty plays a vital role in manufacturing scenarios. Excise related configuration is known as CIN configuration. To understand the Indian statutory Requirements in the area of indirect taxation, Understanding statutory maintenance of Excise Registers, Sales Tax Set off we will go for Country India Version, the concept of Cenvat Input of Raw Materials and Out Put of Finished goods There are Types of Taxes: Indirect taxes: Central Excise, Customs, Sales / Vat tax & Service tax Direct Taxes: Tax Deducted at Source 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) Materials Management (MM): Country Version India comes with functions for calculating, posting, remitting, and reporting excise duty, and for handling incoming and outgoing excise invoices. For these purposes, extra fields are available in the vendor master data and material master data for information required in India only. Country Version India offers two ways of calculating excise duty, a conditionbased method and a formula-based method. You can enter incoming excise invoices in the R/3 System for goods receipts arising from external procurement, subcontracting, and stock transfer. Excise clerks can capture incoming excise invoices using a dedicated transaction, or, alternatively, warehousemen can capture them in the standard Goods Movement transaction, MIGO, when they enter a goods receipt. What is CENVAT (Central Value-added Tax) and how it is configured?
Explain what is cenvat; we have to understand the Indian tax Central Excise Duty (BED). It is called as basic excise duty. Every manufacturer is liable to pay the excise duty in various kinds namely Basic Excise Duty, Special Excise Duty, Additional Excise Duty etc. For example, consider a product (finished goods) which is reached to a customer (end user), how many manufacturing activities are done. So to reduce the tax burden of the end user, the Govt. of India introduces the MODVAT scheme which is now called CENVAT scheme. Based on this, if any manufacturer purchased a material, which is duty paid, and if it is used for his further manufacturing activity, he can avail this as credit in his book based on the Central Excise Invoice. At the time of selling his manufactured goods, he is liable to pay the excise duty. He can adjust the credit which he has taken into his book and pay the rest. For example: CENVAT availed at the time purchased various goods Rs.20, 000 (Excise duty alone) CENVAT payable for his product at the time sales Rs.25, 000 He will pay only Rs.5000 through cash deposit in PLA. What is Excise Duty? Excise duty is a tax on manufacture or production of goods. Is it collected by the State Government or the Central Government? Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called "State Excise" duty. The Excise duty on rest of goods is called "Central Excise" duty and is collected in terms of Section 3 of the Central Excise Act, 1944. How is it different from Sales Tax? Sales Tax is different from the Excise duty as former is a tax on the act of sale while the latter is a tax on the act of manufacture or production of goods. Excise invoice: A business document, in India, that you prepare when you issue excisable goods from a manufacturing plant, for example: To be sold to a customer, to be transferred to another of your plants The excise invoice lists the goods that you have issued and states how much excise duty applies. Your customer uses the excise invoice to claim back the excise that it has paid from the excise authorities.
We can capture and post excise invoices in one or two steps, depending on our business requirements. In the one-step procedure, the excise clerk captures and posts the incoming excise invoice simultaneously. The system creates the Part II entry automatically. In the two-step procedure, the excise clerk captures the incoming excise invoice. This means that the clerk enters the data, but the system does not yet create an entry in Part II of the appropriate excise register. Another user (the excise supervisor) checks the excise invoice and posts it. The system then creates a Part II entry. The excise invoice consists of header data and line items. The header data comprises: An internal number, the excise invoice number, the date of the excise invoice The details of the original vendor who generated the excise invoice, if your vendor purchased the goods from another vendor and was merely selling them on to you At line item level, the excise invoice lists the materials on the excise invoice, showing the following information: Chapter ID, Quantity of materials, Excise duty base amount, Rates of excise duty, Amount of duty paid Chapter ID: The number given to a material in the schedules of materials published by the government of India, the schedule lists all materials involved in manufacturing, input materials and output materials alike. It shows how much excise duty is levied on each material. Each material in the schedule is assigned its own identification code, called "chapter ID."
1. Maintain Excise Registrations?
Spro  IMG  Logistics General  Tax on goods movement  India  Basic Settings  Maintain Excise Registrations.
The taxpayer is required to obtain a separate ECC number for each registered premises (for example. Every factory that manufactures excisable goods is required to register separately. factory.Excise Registration Enter a four-character code of your choice. warehouse.
. This ID identifies the excise registration throughout the system. by the Department of Revenue to legal and natural persons liable to excise duty.
ECC No: Excise Control Code A tax number assigned. or dealer's premises). ER No: Excise Register No. Each entity is assigned its own excise registration number. An entity in India that is entitled by law to produce any goods liable to excise. in India.
mostly food stuffs. in India. It is levied on a wide range of products. levied on a select range of products. a tax on the manufacture of certain products. a subdivision. AED: Additional Excise Duty The excise registration is liable to additional excise duty. Excise Commissionerate: An administrative body. There are around 90 commissionrates in India. when a business registers with the local excise authorities. foodstuffs. Excise Range: The excise range in whose area the excise registration is located. jeweler. leather goods. A form of excise duty in India on a limited number of goods. in India. metals. excise divisions are split up into excise ranges. The excise ranges are responsible for issuing ECC numbers. and machinery. A form of excise duty.The number used to identify an excise registration. BED: Basic Excise Duty The main type of excise duty in India. for the most part. and they are subdivided into excise divisions. CESS: The excise registration is liable to cess. textiles. including pan masala. In India. in India. It reports to the Central Board of Excise and Customs. for example. EI Items: Excise Invoice
. Excise Divisions: A subdivision of an excise commissioner ate. in India. and yachts. furs. SED: Special Excise Duty The excise registration is liable to special excise duty. the authorities issue it a separate number of registration. of an excise division. which in turn are divided into excise ranges. that assesses and collects excise duty. In turn. mostly luxury goods. sparkling waters.
This information affects the transactions for creating outgoing excise invoices for factory sales and for other movements. When you post a goods receipt. Specifies whether you are allowed to receive more than one delivery per excise invoice. the system splits the input excise duty on the material into its deductible and nondeductible amounts.The maximum number of line items that you are allowed to include in a single outgoing excise invoice. We maintain Excise Registration information relating to our plants. NCCD: National Calamity Contingent Duty Liable To AT1. It posts the deductible duty to the appropriate CENVAT account. whether you can take the CENVAT credit immediately (Multiple Credits) or have to wait until the delivery has been made in full (Single Credit). This information is also shown when you post the incoming excise invoice. other two tick boxes (AT2 & 3) are reserved for future taxes & additions. Partial CENVAT Credit: The excise registration is allowed to credit only a portion of its input excise duty to its CENVAT account.
2. and if so. and AT3: AT1 is SECONDARY HIGHER EDUCATION CESS. This information is used to split the transfer postings' items into multiple subcontracting challans. by ticking this tick box you declare that the unit under this registration ID is liable for SHECESS. and adds the nondeductible duty to the material value. AT2.
. Maintain plant settings for excise?
Spro  IMG  Logistics General  Tax on goods movement  India  Basic Settings  Maintain Plant Settings.
which keeps its own set of excise records. Uniquely. to copy the excise invoice quantity to the goods receipt. the excise group is a purely internal organizational unit. the excise registration compiles the information from all of its excise groups. Part I Entry for Direct Consumption: Automatically creates two entries in Part I of register RG 23 A or RG 23 C immediately you post a goods receipt for direct consumption. goods for direct consumption are not added to a material stock. When the time comes to present these records to the authorities. in India. Each excise group keeps records of all transactions that have to be reported to the excise authorities. you can also control how various excise invoice transactions will work. Excise Invoice Automatically During Billing: The system to automatically create an outgoing excise invoice immediately you create a commercial invoice or a pro forma invoice. Instead.3. For each excise group. one entry to record the goods receipt. and one for the goods issue.
. Maintain Excise Groups?
Spro  IMG  Logistics General  Tax on goods movement  India  Basic Settings  Maintain Excise Groups Excise Groups: A unit within an excise registration. We define our excise groups. You do not create a separate goods issue. Excise Invoice Quantity to Goods Receipt: When you post a goods receipt using an incoming excise invoice as a reference document. whereas the excise registration reports to the excise authorities. The system creates the excise invoice in the background. the system posts them straight to a consumption account.
4. one at header level and one at item level. one for the goods receipt and another for the goods issue. it shows two additional Excise Invoice tabs. You enter the goods receipt details and the excise invoice information. The system creates a single material document for the goods receipt and issue.
MIGO Settings: Excise Invoice in MIGO: When we run the Goods Movement transaction. From this material document it generates two Parts I entries for register RG 23 A. We enter a goods receipt for 100 lengths of steel for direct consumption. the system automatically saves the excise invoice. Maintain Series Groups?
. it is the goods issue material document that causes the system to create the Part I entry for the goods issue.However. When we save the goods movement. with other goods.
it creates two series groups for these. but because it has so many excise invoices. Maintain Excise Duty Indicators?
Spro  IMG  Logistics General  Tax on goods movement  India  Basic Settings  Maintain Excise Duty Indicators
. It creates a series group for the ARE-1s. Series groups allow you to maintain multiple number ranges for the outgoing excise documents. and one for raw materials. Excise document series group: An excise registration uses various types of excise documents.Spro  IMG  Logistics General  Tax on goods movement  India  Basic Settings  Maintain Series Groups Series Groups: We define the different excise series groups within our company. one for finished materials.
5. including outgoing excise invoices and ARE-1s.
6. whereas TAXINJ supports condition based excise determination and formula based excise determination. 1) Formula Based Pricing procedures 2) Condition Based pricing Procedures Formula Based Pricing procedures:
Condition Based pricing Procedures: When we enter a purchase document or purchase order enter the tax code for condition based excise determination in each line item. Tax Calculation Procedure?
Spro  IMG  Logistics General  Tax on goods movement  India  Basic Settings  Determination of excise duty  Select Tax Calculation Procedure Tax Calculation Procedures are Two Types: The slandered system comes with two tax calculation procedures TAXINN is only support condition based excise determination. Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.
. the R/3 system automatically calculates the applicable excise duties using the condition records.
plant. vendor.Condition based pricing procedure maintain the condition records with respect to condition type. material and tax key combination we will maintain condition records. Maintain Excise Defaults?
Spro  IMG  Logistics General  Tax on goods movement  India  Basic Settings  Determination of excise duty  Maintain Excise Defaults We define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination.
Classifying Tax Conditions in TAXINN?
Spro  IMG  Logistics General  Tax on goods movement  India  Basic Settings  Determination of excise duty  Condition based excise determination  classify condition types Condition type: The system uses this information when you create a document from another one.
. 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. For example.8. when you enter an incoming excise invoice from a purchase order.
and post excise invoices. display. J1IEX_P: This transaction is for excise supervisors: they can change. The system comes with three standard transactions relating to the Incoming Excise Invoices function J1IEX_C: This transaction is for excise clerks: users of this transaction can only capture and display excise invoices.
.9. Define process modes per transaction?
Spro  IMG  Logistics General  Tax on goods movement  India  Business Transactions  Incoming Excise Invoice  Define Processing Mode Per Transaction In this process we specify which processing modes the user can use in the various Incoming Excise Invoice transactions. cancel.
in India. Define reference document per transaction for excise?
Spro  IMG  Logistics General  Tax on goods movement  India  Business Transactions  Incoming Excise Invoice  Define Reference Documents Per Transaction
10. changing. as well as displaying. users can capture and post excise invoices. and canceling them. ARE-1 and ARE-3. that accompanies exports and deemed exports.
ARE Document: A document.J1IEX: In this transaction. The documents ensure that you do not have to pay excise duty on these transactions. There are two types of ARE documents.
If you have already posted the goods receipt. this option will not be available when the user runs the transaction. if you do not set this indicator.We specify for each combination of transaction and processing mode which reference documents you want the users to be able to use. you can use the goods receipt document as the reference document.
. When you enter the excise invoice in the system.
We can active the check box. Maintain Rejection Codes?
Spro  IMG  Logistics General  Tax on goods movement  India  Business Transactions  Incoming Excise Invoice  Maintain Rejection Codes We define the rejection codes that are used in the Incoming Excise Invoices transaction.
11. you specify the number of the original goods receipt: this is the reference document.
for example. For each rejection code. Specify movement type involve excise invoice?
Spro  IMG  Logistics General  Tax on goods movement  India  Business Transactions  Incoming Excise Invoice  Specify Which Movement Type involve in Excise Invoice We specify which movement types relating to goods receipts involve excise invoices. instead of the CENVAT clearing account. You can also specify whether the excise duty in the invoice is to be posted to the CENVAT on hold account. When you post a goods receipt using one of the movement types that you have specified here. purchase order to warehouse) is allocated to a movement type in the system. Each goods movement (for example. The system uses this information during the goods receipt procedure.
12. Specifies a key for the type of goods movement. rejected or reversed an excise document. This option cannot be used for processing goods receipts without purchase orders. the system prompts you to enter the excise invoice number.Allows you to record why you. Goods Movement: A physical or logical movement of materials leading to a change in stock levels or resulting in the consumption of the material. enter a code and a description.
Movement Type: A classification key indicating the type of material movement (for example. physical stock transfer). the movement type groups for issues and receipts and the hierarchy of determining the excise base value are mentioned here. The conditions such as the number of excise items per subcontracting challan. Subcontracting Attributes?
Spro  IMG  Logistics General  Tax on goods movement  India  Business Transactions  Subcontracting  Subcontracting Attributes The subcontracting attributes help determine conditions for a combination of an excise group. The movement type enables the system to find predefined posting rules determining how the accounts of the financial accounting system (stock and consumption accounts) are to be posted and how the stock fields in the material master record are to be updated. and a sub transaction type. a transaction type.
. if the non excisable materials have to be filtered or not when the subcontracting challan is created.
13. goods receipt. goods issue.
. The system uses the excise transaction type to determine which G/L accounts have to be posted to.Excise Transaction Type: Identifies the excise transaction.
Movement Type Group Receipts: Receipts of materials are grouped for a combination of transaction type and sub transaction type. These Groups can be defined individually for each sub transaction type of every transaction type. This information is used to split the transfer postings' items into multiple subcontracting challans. Movement Type group for Issue: The movement types relevant for issue of materials are grouped for a combination of transaction type and sub transaction type.
.Subcontracting Period: The maximum number of days that the materials can be with subcontractor without you having to reverse the excise on the CENVAT account. Maintain movement type groups?
Spro  IMG  Logistics General  Tax on goods movement  India  Business Transactions  Subcontracting  Maintain Movement Type Group Movement Type Group: Movement Type Groups will be used to club the movement types based on their nature (issues or receipts). This information is used when you create a subcontracting challan to determine on exactly which date the materials have to be returned by. Subcontracting Output Type: J1IF is the output type used for subcontracting challan. This information affects the transactions for creating outgoing excise invoices for factory sales and for other movements.
14. Number of Items in Excise Invoice: Shows the maximum number of line items that you are allowed to include in a single outgoing excise invoice.
Country Version India includes a number of sample SAP script forms and printing programs
.15. Excise Registers?
Spro  IMG  Logistics General  Tax on goods movement  India  Business Transactions  Excise Registers  Specify SAP Script Forms For each of our company codes. we specify which SAP script forms the system prints the excise registers with.
Spro  IMG  Logistics General  Tax on goods movement  India  Tools  Number Ranges We can maintain the number ranges for all CIN Number range objects using this transaction The Number of Number Ranges has to be ‘01’ for all J_1IINTNUM: Internally document number to be generated At an Excise group Level J_1IRG23A : RG23A part I number range object. J_1IRG1 : RG1 Number range object
J_1IRG23C1 : RG23C part I number range object J_1IRG23C2 : RG23C part II number range object J_1IPLA2 : PLA part II number range object
J_1IINTPR2 : Dispatch serial number
.16. Number Ranges for Excise Documents? Code: J1I9
T. J_1IRG23A2 : RG23A part II number range object.
J_1IRG23D : Folio Numbers for RG 23D J_1IRG1_T : No. Range for RG1 - Excise group / Material (at Material Level),
J_1ICONPLA : Consolidated PLA serial no. generation (If consolidated PLA is used) At Series group level J_1IEXCLOC : Local excise invoice number range, J_1IEXCEXP : Export excise invoice number range, J_1IEXCINV : Excise Invoice Number, J_1IEXCTST : Excise Invoice with intervals, J_1IDEPINV : Excise Invoice Number for Depot Invoices, J_1I57FC : 57FC Number Range Object (57 F Challans)
17. Maintain Chapter ID’s?
Spro  IMG  Logistics General  Tax on goods movement  India  Master Data  Maintain Chapter ID The number given to a material in the schedules of materials published by the government of India, the schedule lists all materials involved in manufacturing, input materials and output materials alike. It shows how much excise duty is levied on each material. Each material in the schedule is assigned its own identification code, called "chapter ID."
If you want to see the details of particular chapter id click on Details icon
enter the accounts for each sub transaction type as well. If we use sub transaction types. Enter all the accounts that are affected by each transaction type. Specify Excise Accounts per Excise Transaction?
Spro  IMG  Logistics General  Tax on goods movement  India  Account Determination  Specify Excise Accounts per Excise Transaction We specify which excise accounts (for excise duty and CENVAT) are to be posted to for the various transaction types.18. 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. Excise Transaction Type: The system uses the excise transaction type to determine which G/L accounts have to be posted to.
Specify Excise GL Accounts per Excise Transaction?
Spro  IMG  Logistics General  Tax on goods movement  India  Account Determination  Specify Excise Accounts per Excise Transaction
Cr. Cr.This is for Country Version India.
What should be my accounting entry in procurement?
For Domestic Procurement of Raw Material During GR Material Stock GR/IR clearing During Excise Invoice Credit Cenvat Account Cenvat Clearing Dr.
. Financial Accounting Flow of Entries:
During Invoice Verification Cenvat Clearing GR/IR Clearing Vendor Payable Dr. Dr.
Dr. Procurement of Stock. Cr.
Cenvat Clearing
Dr.GR/IR clearing
Cenvat On-hold
Custom Payable
Cr. Cr.During Customs Duty Clearing invoice
Dr. Cr. Cr. Dr. Cr. Dr.
For Excise Duty Credit of Raw Material without PO Cenvat Account Cenvat Clearing For Excise Duty Reversal through Excise JV Cenvat Clearing Cenvat Account Dr.
During GR Material Stock GR/IR clearing During Excise Invoice Credit Cenvat Account Custom Clearing During Invoice Verification GR/IR Clearing Vendor Payable Dr. Dr.
Cenvat payable
Cr.What should be my accounting entry when the goods are issued through MM and excise invoice is created (J1IS & J1IV)?
Cenvat Suspense Account
PLA on hold Account
Note: Cenvat Suspense Account should be cleared apprpiately using FI JV's.
What should be my accounting entry in subcontracting reversal / Recredit ?
Cenvat Reversal
Dr.Cenvat Suspense Account
Cr.No Accounting entries for Proforma Billing Document
only Product details and Quantity details. Inventory Raw Material A/c
In MIGO Transaction itself.For Return Goods (Form D3 to be submitted to Excise Dept.
i). It will create the following entry. The FI Document will be as follows.TR 6 Challans
Form No.. it automatically generate FI Document.II.)
In SAP the Movement you save the MIGO Transaction.Link Stock Register.Cenvat Credit on Incoming Materials & Duty Paybale on Outgoing Materials or on Sales (Monthly Register)
Excise PLA Register . 5 Register .Production & Issues or Inputs form Production and Sales
RG 23A Part I .
ii). Central Excise
RG 1 . you can post Excise by choosing capture and post Excise Invoice.
RG 23A Part II . RG 23 A Basic Excise Duty A/c
To Canvat Clearing A/c
After doing MIGO. GR/IR Clearing A/c
. In this transaction also SAP will generate FI document automatically. Inventory of Packing Materials
Cenvat Clearing A/c
VAT Setoff A/c
III. On Receipt of Raw Materials: (MIGO-movement type:101)
Dr. The Entry will be as follows:
iii). Inventory of Raw Materials
Dr. you execute MIRO. Flow of Entries for a Normal Manufacturing Activity:
I. Inventory of Operating Supplies
On Goods Issued for Production: (MIGO-movement type:261)
Dr. On Issued of Semi-Finished Goods for further Processing: (MIGOmovement type:261)
.II. On Invoice Verification: (MIRO)
Dr. Inventory of Raw Materials
Cr. Consumption of Raw Materials
Dr. Consumption of Operating Supplies
Cr. Cost of Goods Manufactured (Semi-Finished Goods)120
V. Inventory of Semi-Finished Goods
III. On Semi-Finished Goods Received form Process: (MIGO-movement type:101)
Dr. Inventory of Operating Supplies
Inventory of Semi-Finished Goods
Cr. Inventory of Finished Goods
VIII. On Finished Goods Received from Process: (MIGO-movement type:101)
Dr. Consumption of Semi-Finished Goods
Dr. Inventoyr of Finished Goods
Cr. Consumption of Packing Materials
Cr. On Raising Bill for the Customer: (VF01)
Dr. On Finished Goods Issued for Sales: (VL01N-movement type:601)
. Inventory of Packing Materials
VI. Cost of Goods Manufactured (Finished Goods)
VII.Dr. Cost of Goods Sold (Finished Goods)
Most of the country-specific functions for India relate to Financials and Logistics. 2010 (view change)
Country Version India A Country Version is designed specifically to cater the business operations of that country over and above the generic SAP system functionalities. Excise Duty plays a vital role in manufacturing scenarios. Country Version India comes with four pricing procedures as follows: JINFAC (Sales from manufacturing plants)
. Here is some information on CIN Configuration. CIN Configuration is a topic in itself. it will be understood better when you check on screen. The main areas are as follows: Excise duty and the central value-added tax system (CENVAT) Withholding tax (also known as tax deducted at source) Sales tax Maintenance and printing of statutory excise registers In Indian Taxing procedure. last edited by Somnath Manna on Feb 10. It comprises of functionalities designed for the laws and business practices pertaining to the country. While it may not appear understandable as given below.Cr. Sales A/c
Added by Guest. Excise related configuration is known as CIN configuration.
you maintain the data relating to your excise registrations. and cess) Fields for any taxes that are not covered will be hidden in transactions involving excise duty. excise registration number Excise Registration Number
. You create one ID for each of your business's excise registrations.General > Tax on Goods Movement > India > Basic Settings > Maintain Excise Registrations Use In this IMG activity.JINEXP (Export sales) JINDEP (Sales from depots) JINSTK (Stock transfers CIN: IMG > Logistics . you maintain excise registration IDs. Activities For each excise registration in your business create a registration ID and state: Which taxes the registration covers (additional 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. special excise duty. Activities Enter each of your excise registrations. Excise code number. specifying a four-character code for each Excise Registration IDs In this activity.
tobacco and sugar. Example Additional Excise duty is leviable in case of textile products. These are leviable under the additional duties of excise act. Excise Division Specifies the excise division in whose area the excise registration is located. These duties are in addition to basic excise duty and special excise duty. Every entity with an excise registration number is required to keep its own excise books.
. Similarly for SED CESS Number of Items in Excise Invoice Shows the maximum number of line items that the authorities allow per excise invoice. Every entity with an excise registration number is required to keep its own excise books. Indicator for confirming AED usage Additional Excise Duty Percentage. ECC Number Specifies the organization's ECC number. Excise Collectorate The code of the excise collectorate in whose area the excise registration is located. Excise Registration Number A number assigned to each premises or location that has registered as a manufacturer with the excise authorities. Excise range: Specifies the excise range in whose area the excise registration is located.A number assigned to each premises or location that has registered as a manufacturer with the excise authorities.
Use In excise journal voucher transaction. Here ED is document type for cenvat posting. Dependencies When you post a goods receipt. X . and adds the nondeductible duty to the material value.Indicates debit accounts can be overwritten. you maintain the data relating to your company codes.
. Excise register set description Description of the excise registers set. which document type the system uses when making CENVAT postings in Financial Accounting (FI). Document Type for CENVAT Postings It controls. Maintain Company Code Settings Use In this IMG activity. It posts the deductible duty to the appropriate CENVAT account.Dependencies This information is used when you create an excise invoice in Sales and Distribution (SD) for factory sales and for other movements. Indicator for providing debit account overwriting Debit Account Overwrite Indicator. the system splits the input excise duty on the material into its deductible and nondeductible amounts. It provides the flexibility to the user to enter the debit account of his choice depending on the nature of transaction. This information is also shown when you post the vendor's excise invoice. This information is used to split the transfer postings' items into multiple subcontracting challans. 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.
To indicate the method opted by the company for selecting the excise invoice. Excise invoice selection procedure Excise invoice selection type.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. Example If the value of this field is 20 and today is 28-03-97. The month 04 is entered here indicating April of the calendar year as the start month for excise invoices. It can be either earliest or latest invoices that were received. Any change by the Excise authorities regarding start month should be taken care of by an entry in this field and initialization.
. Days to be considered for excise invoice selection Number of days from document date for excise invoice selection. Number of excise invoices to be selected Indicates the number of excise invoices that needs to be selected in the excise invoice selection.
Document type for TDS FI posting Financial accounting document type for TDS posting. The excise invoice selection will show the related invoices only for the period 08-03-97 to 28-03-97.
Financial accounting document type for TDS posting. You can use the average rate for the currency translation. or average rate for translating foreign currency amounts.
. when you verify a goods receipt for capital goods. The rest is posted the CENVAT on hold account.
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. for use in the following year. If marked 'X' then the excise duty amount will be rounded off to the nearest rupee at the Purchase order level. 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. to immediately post half of the input excise duty to the appropriate CENVAT accounts. Use You enter the exchange rate type to store different exchange rates. This will not round off the CENVAT credit to be taken. and the bank buying and selling rates for valuation of foreign currency amounts. Example You can use the exchange rate type to define a buying rate. Immediate Credit on Capital Goods Instructs the system. 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. Exchange rate type Key representing a type of exchange rate in the system. selling rate.
you maintain excise information relating to your plants.
Maintain Plant Settings Use In this IMG activity. if required.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. Activities For each plant: ? Specify whether it is a manufacturing site or a depot. and follow different procedures for goods receipt and invoice generation. you maintain excise information relating to your plants. ? Assign it an excise registration ID. Multiple GR for one excise invoice. multiple credits Maintain Excise Groups Use
. Dependencies Depots are required to prepare register RG 23D. Plant Settings In this activity. Depot Indicates that the plant in question is a depot. You can assign the same ID to more than one plant. Number of goods receipt per excise invoice. Single credit Multiple GR for one excise invoice.
Activities 1. 2. 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. An excise group allows you to maintain a separate set of excise registers and excise accounts. If your company has only one set of excise registers. multiple books can be maintained. Assign the excise groups to plants. 1. Excise Groups In this activity. 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. you define your excise groups. single credit'. This will post the selected records into RG23D automatically. But through exemption from the authorities. You cannot cancel the selection later. multiple credit'. you can also control how various excise invoice transactions will work. then you need to maintain only one excise group. 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'. Create one excise group for each set of registers that you need to keep. 4. RG 23C and PLA serial numbers are created for an excise group. The RG 23A.
Recommendation Under normal circumstances. If you want to automatically create Excise invoice during Sales cycle at the time of billing the tick the indicator 'Create EI' 5. excise authorities require every business to maintain only one set of excise registers and one set of accounts. If you receive only one consignment for an Excise challan then you can leave GR's per EI as blank.In this IMG activity.
. Maintain whether this Excise group is for a depot or not. 3. you define excise groups. For each excise group.
If the indicator 'Folio no create' is marked system will generate Folio numbers for RG23D during receipt of excise invoice into depot. Indicates that the plant in question is a depot. 9. 11. when you post a vendor's excise invoice. 'Create Part1 for consumption stock' when marked will create a Part1 during the receipt of material into consumption stock. GR per Excise Invoice
. plant and registration. 'Automatic posting' when ticked will post the Excise invoice other movements automatically along with creation in single step. you specify which excise group you are using. 'Create Part1 for Block Stock' when marked will create a Part1 during the receipt of material into Blocked stock. for example. and follow different procedures for goods receipt and invoice generation. Excise Group Governs which set of excise registers a business transaction will be included in. you create different sets for each excise group. Then. 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. Dependencies In define excise groups in Customizing. Dependencies Depots are required to prepare register RG 23D.6. 'Create Part1 for STO' when marked will create a Part1 during the receipt of material through inter plant transfers. when you come to prepare your excise registers. in transactions involving excise duty. 8. This information tells the system which G/L accounts to post the excise to. 10. 7. At the end of the period. Following is the relation between excise group.
Folio number for depot Posting If this indicator is marked then while creating Excise invoice for other movements system automatically does the Verify and Post. 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. The excise invoice is created in the background.Multiple GR for one excise invoice. you must also define the default plant. multiple credit Multiple GR for one excise invoice. 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. If you need automatic posting of RG23D selection then the Post Goods Issue should have been completed before running RG23D selection. excise group. If this is not selected then you need to separately do RG23D selection followed by PGI and then RG23D verification and posting. and series groups in Customizing for Sales and Distribution (SD). You need not separately Post the excise invoice Also we can set indicator for creation of part 1 for: Blocked stock
. by choosing Excise Group . 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.Series Group Determination. Dependencies If you want to make use of this function.
Based on excise regulations and exemptions from the authorities you can maintain multiple number series for outgoing documents. Example You could define two series groups.
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. group 001 for excise invoices. Series groups allow you to maintain multiple number ranges for the outgoing excise documents.Stock transport order Consignment stock
Maintain Series Groups Use In this IMG activity. But each of these series has to be declared to the excise authorities. ? If the CENVAT has to be paid immediately and you need not wait for the Fort nightly payment then mark the 'Immediate Utilization' indicator. and group 002 for 57 F4 documents.
. 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. you define the different excise series groups within your company. 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 you use condition-based excise determination. If you have both fortnightly and immediate utilization for the same excise group. ? If you use formula-based excise determination. We strongly recommend that new customers use condition-based excise determination. you specify which tax procedure you want to use for determining excise duties and sales taxes on input materials in India.
IMG > Logistics . use a copy of the tax procedure TAXINJ. This tax procedure also supports condition-based excise determination. you cannot switch to another one. Account determination for immediate payment will be done exactly the same as being done for fortnightly utilization program. the system immediately pays the amount from CENVAT and creates the Part II entry. use a copy of the tax procedure TAXINN. the account determination within CIN IMG should point to the ED interim account.
. Note that once you have started using a tax procedure.
Maintain Excise Duty Indicators Use In this IMG activity. you maintain the excise duty indicators. Such invoices will not be listed for fortnightly utilization. so that you can work with both concurrently. otherwise you will not be able to display old documents.Immediate Utilization of CENVAT Specifies that when you create an excise invoice.General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty > Select Tax Calculation Procedure Use In this IMG activity.
? Specify the purchasing and sales conditions types used for basic excise duty. ? Specify the conditions in the sales order that are used for excise rates.Maintain Excise Defaults Use In this IMG activity. IMG > Logistics . fill out the CVD cond. See also
SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materials Management (MM) -> Condition-Based Excise Determination and -> Formula-Based Excise Determination.General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty > Condition-Based Excise Determination Use
. Activities If you use condition-based excise determination. you define which tax procedure and pricing condition types are used in calculating excise taxes using 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 countervailing duty condition type used for import purchase orders. special excise duty. and cess. field and leave all the others blank. If you use formula-based excise determination. additional excise duty.
Activities Customizing Make the settings in Customizing Basic? India?for Logistics . Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.
. for example. you create condition records for every sort of excise duty. Features The standard system comes with two tax calculation procedures. enter the tax code for condition-based excise determination in each line item. Master Data Create condition records for all excise duties that apply. the system applies the excise duty at the rates you have entered in the condition records. the R/3 System automatically calculates the applicable excise duties using the condition technique. These activities include one activity where you define a tax code for condition-based excise determination. The system then calculates the excise duties using the condition records you have created. 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.. TAXINN is only supports condition-based excise determination.When you enter a purchasing document.?Settings Determination.. such as which vendor you purchase a material from. or which chapter ID the vendor stocks the material under. Since the exact rates of excise duty can vary on a large number of factors. When you come to enter a purchasing document. whereas TAXINJ supports condition-based excise determination and formula-based excise determination. a purchase order.General. by choosing Taxes on Goods Movements Account? Excise Duties Using Condition Technique and .
5. 4. enter FV11 and choose . select Country/Plant/Control Code. The system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice.
Formula-Based Excise Determination Use When you execute a business transaction involving materials that are subject to excise duty. 3. the system automatically calculates the duty for you. Select the combination of objects that you want to create the condition record for. plant. Choose . Control Code means "chapter ID.When the ordered materials arrive. 2. you post the goods receipt and the excise invoice. which you can Master Data?access from the SAP Easy Access screen by choosing Indirect Taxes Excise Rate Maintenance. In the command field. you must have maintained all the data on the Excise Rate Maintenance screen. to create a condition record for a tax that applies to a combination of country. In the Tax Code field." So.? You maintain the following types of data:
. Enter data as required. and chapter ID. 6. Save the condition record. enter the dummy tax code that you have defined. Enter the condition type that you want to create a condition record for and choose . Creating Condition Records for Excise Duty 1. On the dialog box. The Key Combination dialog box appears. for example. Prerequisites In order for the system to be able to determine which rate of excise duty to apply.
for each permutation of plant indicator and customer indicator. Assume you are posting a sale of ball bearings to a customer. whether the vendor is a manufacturer. You can use the same indicator for all the plants with the same excise status from a legal point of view. ? Material master data Each material is assigned a chapter ID. a depot. you assign the same excise duty indicator to each of your customers that share the same legal excise status. You must also specify the vendor type . ? Excise tax rate For every chapter ID and final excise duty indicator. you maintain the rate of excise duty. For each permutation of plant indicator and vendor indicator. you then create a final excise duty indicator. such as all those that are in an exempt zone. If your business only qualifies for partial CENVAT credit.for example. Again. you define an excise duty indicator. or a first-stage dealer. See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit). The system automatically determines the rate of excise duty as follows:
. 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.? Plant master data You assign each of your plants an excise duty indicator. You must also stipulate if the vendor qualifies as a smallscale industry. ? Customer master data Similarly. ? Vendor master data For each of your vendors with the same excise status from a legal perspective. you then create a final excise duty indicator.
The system determines the chapter ID of the ball bearing for the plant.
Assign Tax Code to Company Codes Use In this IMG activity. 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. 5.01. 4. you define a tax code for the purposes of calculating excise duty when you enter purchasing documents. 2. and set the tax code type to V (input tax). 3.1. Define Tax Code for Purchasing Documents Use : In this IMG activity. Looks up the plant master data to see what status you have assigned the plant. assign the tax code for purchasing documents to the company codes where it will be used. Looks up the customer master data to see what status you have assigned the customer.01 under status 7. Do not make any other settings for it. Activities: Create a new tax code. Let's assume the chapter ID at plant for the ball bearings is 1000. Finally. Similarly. Only carry out this activity if you use condition-based excise determination. the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000. your plant has status 2. Let's assume you've assigned the customer status 3. Only carry out this activity if you use condition-based excise determination.
. In addition. Use these settings as a basis for your own. Requirements You have set up G/L accounts for each of the processing keys listed below. or when you create an outgoing excise invoice from a sales order. when you enter an incoming excise invoice from a purchase order. when you create a purchasing document. use the condition types contained in the tax procedure. use the condition types contained in the pricing procedures. the system only uses the condition types that you enter here. 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. ? For taxes on sales.General > Tax On Goods Movement > India > Account Determination Define G/L Accounts for Taxes Use In this IMG activity. the system determines the various excise duties in the excise invoice using the information that you have entered here. you specify which G/L accounts you will use to record which taxes. For example. Standard settings The standard system comes with sample settings for the tax calculation procedures and pricing procedures. ? For taxes on purchases.
IMG > Logistics . The system uses this information when you create a document from another one.Use In this IMG activity.
There is no separate transaction type for fortnightly payment.Assign an account to each of the following posting keys. and TR6C for determining the CENVAT and PLA accounts. ? 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. 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. enter the accounts for each subtransaction type as well. EWPO. and VS3 are used as clearing accounts during excise invoice verification. Example Excise TT DC ind Account name
. The fortnightly CENVAT payment utility picks up the credit side accounts from the transaction types of GRPO. 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 subtransaction types. The accounts for VS1. VS2.
. Requirements You have already: ? Defined the G/L accounts ? Defined the excise groups ? Maintained the transaction accounts Activities For each excise group.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. one set of accounts will suffice for alltransactions. you can also use sub transaction types. When you come to execute the various transactions. if you want separate account determination settings within an excise group. the system determines which G/L accounts to post to by looking at the: ? Excise group ? Company code ? Chart of accounts Furthermore. assign the excise and CENVAT accounts to G/L accounts. you assign the excise and CENVAT accounts to G/L accounts. For most businesses.
select data screen no.
Even though this functionality is available in enterprise version. Select the same and click on Data Screen in the left frame. no. so maintain the credit account for transaction type DLFC as an excise duty interim account. 7. 2.0001 and select the same. Excise related subscreen appears.6 you delete SAPLMGD1 . Select your screen sequence.0001 and instead add SAPLJ1I_MATERIAL_MASTER and in the screen no. 21-15-6 .e. a small config step has to be made in Screen Sequences for Material Master.
.e. 2205.
? Material Master ? Logistics General ?1. Create a Material Master and check whether in Screen Foreign Trade Import. Click on tab view subscreen and ensure that the subscreen is blank. which is "Foreign Trade: Import Data". 3. 4.SAPLMGD1.
Following document helps you to do this configuration. 15. 5. SSq. 21and Scrn 15. This will be set off when you remit the duty. ie. 6. Select the same and click on Subscreens in the left frame. Save the setting.You need not remit the CENVAT to the excise department immediately. Once the data screens are exhibited. Config setting needed to be done in order to get the Excise Details Screen in Material Master. Usually it would be 21. Now in the last sub screen i. Go to the last sub screen i. Go to IMG Define Structure of Data Screen for each?Configuring the Material master Screen Sequence.
J1IF13 Complete. or recredit a subcontracting challan
. reverse.
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