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Implementation Guide of CIN
Here we shall discuss steps in implementing CIN. IMG Path: SPRO Logistics General Tax on Goods Movements India
FIGure II.1 ImplementationguidepathtoconfigureCIN
FIGure II.2 ImplementationguidepathtoconfigureCIN
II.1.1 MaIntaInExcIsEREgIstRatIonsEvery plant is registered with excise department. Details of these registrations are maintained here as an excise registration ID. These excise registration IDs are assigned excise group. Excise group is an organization entity from CIN point of view. From system point of view various form of duty applicability related control are maintained. Various form duties are as follows. 1. 2. 3. 4. 5. 6. 7. Basic excise duty Additional excise duty Education cess Secondary and higher education cess Countervailing duty Additional duty of customs National calamity contingency duty
IMG Path SPRO Logistics - General Tax on Goods Movements India Basic Settings Maintain Excise Registrations
FIGure II.3 Maintaining excise registration ID
FIGure II.4 Maintaining details of excise registration ID ExciseInvoiceItemspecificationcontrolsthenumberoflineiteminoutgoingexciseinvoiceandsubcontracting Challan.
II.1.2 MaIntaIncoMpanycodEsEttIngsIMG Path: SPRO Logistics General Tax on Goods Movements India Basic Settings Maintain Company Code Settings
FIGure II.5 Maintain company code settings
FIGure II.6 Company code settings (for full view click here)
II.1.3 MaIntaInplantsEttIngsPlants are set up either as a depot or a manufacturing plant, their excise registration ID and invoice posting. IMG Path: SPRO Logistics General Tax on Goods Movements India Basic Settings Maintain Plant Settings
FIGure II.7 Setting up plants
II.1.4 MaIntaInExcIsEgRoupsExcise Group is an organizational entity from CIN point of view. Every excise related transaction is executed at excise group level. Excise invoice posting, register maintenance and utilization etc. are done at excise group level. Plants are assigned to excise group. More than one plant can be assigned to one excise group depending upon the business requirement.
FIGure II.8 Setting up excise group
FIGure II.9 Setting up excise group
II.1.5 MaIntaInsERIEsgRoupsSeries groups define multiple number range of outgoing excise invoices. There are various outbound movements of goods like for stock transfer from one excise group to another excise group, subcontracting Challan, sales invoice etcetera. For every type of outbound goods movement a different series group can bedefinedtohavedifferentoutgoingexciseinvoicenumber.Seriesgroupsareassignedtoexciseregistration ID. If the outgoing excise invoice is not meant for utilization of duty then No Utilization check box should be marked.
FIGure II.10 Definingseriesgroup
II.1.6 MaIntaInExcIsEdutyIndIcatoRsExcise duty indicators are used to determine excise rate applicability during transactions.
Maintaining excise duty indicator
II.1.7 MaIntaInsubtRansactIontypEwIthtExtSubtransactiontypeisusedtofindoutalternativeaccountforposting.SubtransactiontypeIPisusedto determine GL account for posting ADC (Additional duty of customs).
FIGure II.12 Maintainingsub-transactiontypetext.Subtransactiontypesareusedtofindalternativeaccount for posting
II.1.8 dEtERMInatIonofExcIsEduty II.1.8.1 select tax Calculation Procedure
FIGure II.13 Assigning tax calculation procedure to country account for posting
Maintain excise Defaults
Excise defaults are maintained so that system can determine which the excise duty tax condition types are. These are the condition types which are present in tax, MM pricing and sale pricing procedures.
FIGure II.14 Maintaining excise default
View table J_1IEXCDEF, using transaction SE16 all the entries.
Condition-based excise Determination
II.18.104.22.168 DefineTaxCodeforPurchasingDocumentsPleaserefertoChapter4,Sec.4.4fordetails.Wehavediscussedthattaxcodesaredefinedandmaintained using transaction FTXP. When we use tax procedure TAXINJ (Formula-based tax procedure), we use T-code FTXP to create and maintain rate in a tax code. But when we use tax procedure TAXINN (Condition-based tax procedure) T-code FTXP is used for tax code creation but for rate maintenance condition record is maintained for required tax condition type. T-code FV11 is used for the creation of condition record for tax condition types. Condition record maintenance of tax condition type is similar to that of pricing procedure condition type.
FIGure II.15 Assigning tax code to company code
FIGure II.16 Classify default condition type for tax procedure TAXINN
FIGure II.17 Maintaining chapter IDs as per excise laws
FIGure II.18 Maintaining chapter IDs as per excise laws
II.5 aCCouNt DeterMINatIoN II.5.1 dEfInEglaccountsfoRtaxEsGeneral ledger account is maintained for excise duty, service tax and VAT. T-code is OB40. Please refer Chapter 4, Sec. 4 for details.
II.5.2 spEcIfyExcIsEaccountspERExcIsEtRansactIonAccountnamesaredefinedfordebitandcreditentriesduringvariousgoodsmovementforvarioustransaction types.
FIGure II.19 Specifying excise accounts per excise transaction FollowingaretheexcisetransactiontypesdefinedbytheCIN. 1. 2. 3. 4. 5. 6. 7. GRPO: Goods receipt for purchase order in plant. Also used in depot for a PO and material document EWPO: Excise invoice without purchase order 57FC: Subcontracting challan 57NR: Reversal and re-credit for subcontracting challan CAPE: Capital goods credit accounts OTHR: Excise invoice for other movements DLFC: Factory sale and stock transfer via SD
298 SAPMaterialsManagement 8. 9. 10. 11. 12. 13. 14. CEIV: Cancellation of generated excise invoice DIEX: Differential excise invoice credit MRDY: Excise duty reversal without reference MRRD: Excise duty reversal if material used for non-production MRWO: Excise duty reversal for write off cases (T-code J1IH, Excise JV) TR6C: PLA account adjustment through TR6 challan (T-code J1IH, Excise JV) UTLZ: is used for determining the accounts when a JV is posted with an option of fortnightly payment (T-code J2UIN, monthly utilization)
GRPO is used when incoming excise invoice is posted with respect to purchase order. EWPO is used when incoming excise invoice is posted without any reference to either purchase order or goods receipt material document. CAPE is used to when incoming excise invoice is posted with respect to purchase order and 50% of the exciseistoholdcreditfornextfinancialyear.
II.5.3 spEcIfyglaccountspERExcIsEtRansactIonGeneralledgeraccountsaredefinedforthecombinationofexcisegroup,ETT(excisetransactiontype), company code and sub transaction type for automatic determination and posting.
FIGure II.20 Specifying GL account per excise transaction All the entries can be seen in table J_1IEXCACC, using transaction SE16.
FIGure II.21 TableentryofJ_1IEXCACC,specifiedG/Laccountperexcisetransaction
II.6.1 IncoMIngExcIsEInvoIcEsIMG Path: SPRO Tax on Goods Movements India Business Transactions Incoming Excise Invoices
300 SAPMaterialsManagement Herewecandoconfigurationrelatedtotransactionsofcapturingandpostingincominginvoices.
Inthisconfigurationwecontrolthescreenlayout,fieldsbehaviour(mandatory,optional,suppress,display and highlighted).
FIGure II.22 Screenlayout(fieldscontrol)
FIGure II.23 Definingprocessmodespertransaction
FIGure II.24 Definingreferencedocumentspertransaction
Maintain rejection Codes
Rejections codes are maintained to specify reason for rejecting the excise invoice while capturing it
FIGure II.25 Maintaining rejection codes
specify Which Movement types Involve excise Invoices
Here, we specify the movement type for which update of excise register is required. Any increase or decreaseinstockor/andinvalue,shouldbeupdatedinPartIandPartIIofspecifiedregistersinSAP.As per Central Excise Department, maintenance of register is not mandatory but registers are still maintained to facilitate proper record of excise related transactions. If any movement type is maintained here excise update would not take place. For example, if movement type 122 (cancellation of GR) is not mentioned, it would not be feasible to create outgoing excise invoice for the returned material.
FIGure II.26 Specifying which movement types involve excise invoices (for full view click here)
II.6.2 outgoIngExcIsEInvoIcEsIMG Path: PRO Tax on Goods Movements India Business Transactions Outgoing Excise Invoices