cin purpose

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CIN - Country India Version ~ Volume 1 Purpose Country Version India (CIN) contains a number of enhancements to standard Sales and Distribution (SD) functions that allow you to handle local requirements, in particular excise duty. Features In Country Version India, (CIN), this component handles sales processes as found in India. In addition to the generic functions, it allows you to: Handle CENVAT in your sales processes The system calculates excise on your sales and creates excise invoices as required and makes the appropriate postings to your CENVAT accounts. It covers sales from factories, sales from depots, and offers functions for other types of goods movements; it also covers sales to export-oriented units and export sales. Record concessional and exemption forms sent to you by your customers Make adjustment postings to your CENVAT accounts Excise Invoice (Outgoing) Definition The document that acts as the proof of payment of excise duty and is required for the customer to take CENVAT credit on the item Use In the SAP System, there are three different procedures for creating excise invoices Sales direct from the factory This procedure is for when you sell manufactured goods straight from the factory at which they were produced, in which case you levy excise duty when the goods leave the factory on their way to the customer. If, when you send the goods to the customer, you enclose the commercial invoice, you create the excise invoice with reference to the commercial invoice. If you want to send the commercial invoice after you have dispatched the goods, however, you create the excise invoice with reference to a pro forma commercial invoice. For more information about these procedures, see Sales from Factories. As well as creating excise invoices individually, you can also create them in batches (see Creation of Excise Invoices in Batches). Sales from depots A depot is a site at which the goods are stored, away from the factory at which they were produced. In this procedure, you have to levy the excise duty when you transfer the goods from the factory to the depot, and then make sure this is passed on to the customer when it makes a purchase. For more information, see Sales from Depots. Sales (other goods movements) Some other goods movements may also require you to create an excise invoice with reference to other documents. The SAP System offers separate functions for these purposes (see Excise Invoices (Outgoing) for Other Movements). Structure Numbering of Excise Invoices Outgoing excise invoices have two numbers: an internal document number, which is assigned immediately you create an excise invoice; and an excise invoice number, which is not assigned until you have verified and posted it. As far as the excise invoice number is concerned, you have to number your outgoing excise invoices in sequential order, starting each year on 1 April. You must notify the excise authority of the jurisdiction of the invoicing location. The serial number must be printed on each page of the excise invoice. Each number range is governed by a series group. You must create at least one series group in order to be able to number the excise invoices. If you need more than one number range, you must create the corresponding number of series groups. You do so in the CIN

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Page 1: CIN Purpose

CIN - Country India Version ~ Volume 1PurposeCountry Version India (CIN) contains a number of enhancements to standard Sales and Distribution (SD) functions that allow you to handle local requirements, in particular excise duty.FeaturesIn Country Version India, (CIN), this component handles sales processes as found in India. In addition to the generic functions, it allows you to:Handle CENVAT in your sales processesThe system calculates excise on your sales and creates excise invoices as required and makes the appropriate postings to your CENVAT accounts.It covers sales from factories, sales from depots, and offers functions for other types of goods movements; it also covers sales to export-oriented units and export sales.Record concessional and exemption forms sent to you by your customersMake adjustment postings to your CENVAT accountsExcise Invoice (Outgoing) DefinitionThe document that acts as the proof of payment of excise duty and is required for the customer to take CENVAT credit on the itemUseIn the SAP System, there are three different procedures for creating excise invoicesSales direct from the factoryThis procedure is for when you sell manufactured goods straight from the factory at which they were produced, in which case you levy excise duty when the goods leave the factory on their way to the customer.If, when you send the goods to the customer, you enclose the commercial invoice, you create the excise invoice with reference to the commercial invoice. If you want to send the commercial invoice after you have dispatched the goods, however, you create the excise invoice with reference to a pro forma commercial invoice. For more information about these procedures, see Sales from Factories.As well as creating excise invoices individually, you can also create them in batches (see Creation of Excise Invoices in Batches).

Sales from depotsA depot is a site at which the goods are stored, away from the factory at which they were produced. In this procedure, you have to levy the excise duty when you transfer the goods from the factory to the depot, and then make sure this is passed on to the customer when it makes a purchase. For more information, see Sales from Depots.Sales (other goods movements)Some other goods movements may also require you to create an excise invoice with reference to other documents. The SAP System offers separate functions for these purposes (see Excise Invoices (Outgoing) for Other Movements).

StructureNumbering of Excise InvoicesOutgoing excise invoices have two numbers: an internal document number, which is assigned immediately you create an excise invoice; and an excise invoice number, which is not assigned until you have verified and posted it.As far as the excise invoice number is concerned, you have to number your outgoing excise invoices in sequential order, starting each year on 1 April. You must notify the excise authority of the jurisdiction of the invoicing location. The serial number must be printed on each page of the excise invoice.Each number range is governed by a series group. You must create at least one series group in order to be able to number the excise invoices. If you need more than one number range, you must create the corresponding number of series groups. You do so in the CIN Implementation Guide (IMG), by choosing Global Settings ® Series Groups.Number of Line Items Per Excise InvoiceSome states allow you to include only a limited number of items for each page of an excise invoice (for example, if the excise invoices are to be printed on prenumbered forms). You can customize the system so that it prints the excise invoice accordingly, in the CIN IMG, by choosing Global Settings ® Excise Registration IDs.

Customer Master (Excise Data) DefinitionThe part of the customer master record that contains information relating to Indian excise duty.UseIn conjunction with other data, this data is used to calculate excise duty on various transactions.To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes ® Master Data ® Excise Rate Maintenance, and then select the following options described below.StructureThe excise part of the customer master contains the following information:Customer Excise DetailsOn this screen, you enter your customers' tax registration numbers, which are used for various forms of correspondence and reports:

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1. Excise registration number (and the range, division, and collectorate in which this is located)2. Central sales tax (CST) number3. Local sales tax (LST) registration number4. Permanent account number (PAN)In order for the system to be able to calculate which rate of excise duty to apply on sales to the customer, you must also assign it a customer excise duty status (for more information about how this works, see Determination of Excise Duty Rates).Excise Indicator for Plant and CustomerOn this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).

Determination of Excise Duty UseWhen you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.PrerequisitesIn order for the system to be able to determine which rate of excise duty to apply, you must have maintained all the data on the Excise Rate Maintenance screen, which you can access from the SAP Easy Access screen by choosing Indirect Taxes ® Master Data ® Excise Rate Maintenance.You maintain the following types of data:Plant master dataYou assign each of your plants an excise duty indicator. You can use the same indicator for all the plants with the same excise status from a legal point of view, such as all those that are in an exempt zone.See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit).Vendor master dataFor each of your vendors with the same excise status from a legal perspective, you define an excise duty indicator. You must also specify the vendor type – for example, whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as a small-scale industry.For each permutation of plant indicator and vendor indicator, you then create a final excise duty indicator.Customer master dataSimilarly, you assign the same excise duty indicator to each of your customers that share the same legal excise status.Again, for each permutation of plant indicator and customer indicator, you then create a final excise duty indicator.Material master dataEach material is assigned a chapter ID.Excise tax rateFor every chapter ID and final excise duty indicator, you maintain the rate of excise duty.If your business only qualifies for partial CENVAT credit, you must customize your system accordingly.ActivitiesLet us consider an example to illustrate how the system determines which rate of excise duty to apply to a material. Assume you are posting a sale of ball bearings to a customer. The system automatically determines the rate of excise duty as follows:Looks up the customer master data to see what status you have assigned the customer.Let's assume you've assigned the customer status 3.Looks up the plant master data to see what status you have assigned the plant.Similarly, your plant has status 2.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.The system determines the chapter ID of the ball bearing for the plant.Let’s assume the chapter ID at plant for the ball bearings is 1000.01.Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000.01 under status 7.

Plant Master (Excise Data) DefinitionThe part of the plant master record that contains information relating to Indian excise duty.UseIn conjunction with other data, this data is used to calculate excise duty on various transactions.To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes ® Master Data ® Excise Rate Maintenance, and then select the following options described below.StructureThe excise part of the plant master is divided into the following screens:Excise Indicator for PlantOn this screen, you enter your plants' tax registration numbers, which are used for various forms of correspondence and reports:1. Central sales tax (CST) number2. Local sales tax (LST) registration number3. Permanent account number (PAN)In order for the system to be able to calculate which rate of excise duty to apply on purchases for this plant, you must also

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assign it a plant excise duty status (for more information about how this works, see Determination of Excise Duty Rates).Excise Indicator for Plant and VendorOn this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).Excise Indicator for Plant and CustomerOn this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).

Automatic Creation of Excise Invoices UseThe SAP System can automatically create an outgoing excise invoice for you immediately you post a commercial invoice (or a pro forma invoice) for a customer sale. This function applies to excise invoices for sales from factories only.PrerequisitesTo activate this function, in the Country Version India (CIN) Implementation Guide (IMG), make the following settings:1. Under Global Settings ® Excise Groups, select Create EI.This activates the automatic creation function.2. Under Sales and Distribution ® Utilization Determination.Here, you specify which CENVAT accounts the system is to post the different types of excise duty to.3. Under Sales and Distribution ® Excise Group–Series Group Determination.Here, you specify which excise group and series group the excise invoices are to be created for.FeaturesWhen you post an invoice, the system creates an excise invoice. All the information that it needs to create the excise invoice is provided either by the invoice or by the Customizing settings that you have made in Sales and Distribution. It also determines the excise invoice type automatically by means of a user exit.

Creating Excise Invoices for Stock Transfers 1. From the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® For Depot ® Create/Change/Display.2. In the Material document field, enter the goods receipt number and choose .The system displays the information from the goods receipt, for example, the sending plant, the excise registration, the range, the division, and the collectorate.3. Choose Details.The system copies the items from the goods receipt document. In the depot it is possible to have a separate excise invoice at line item level.4. Enter the internal document number of the excise invoice sent by the factory.5. Choose More documents to go the excise invoice details screen.6. Enter the internal document number of the excise invoice from the factory.The system copies the information to the line item (for example, the excise invoice number, the excise invoice date, the item number , the chapter ID, the excise invoice quantity, the amount of excise duty paid, the excise base value, and the serial number of the Part II register entry with which the excise was paid).You can change the receipt quantity to match the actual quantity received at the depot, if necessary. The system automatically adjusts the excise accordingly.7. Go back to the item details screen.8. Save the excise invoice.

Creating Excise Invoices for Direct Purchases 1. From the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® For Depot ® Create/Change/Display.2. In the Material document field, enter the goods receipt number and choose .The system displays the information from the goods receipt, for example, the sending plant, the excise registration, the range, the division, and the collectorate.You can also maintain the excise registration details for the ship-from party, as for with the vendor. The ship-from can be different from the vendor code. (The delivering plant can be maintained as a ship-from in the system. When a valid ship-from is entered, the excise registration details copied from the vendor will be overwritten by the ship-from excise registration details.)The ship-from registration details displayed can also be overwritten manually.The dealer's commercial invoice number can be stored in the vendor excise invoice number, as in this case the dealer himself will not have an excise invoice.3. Choose Details.The system copies the items from the goods receipt document. It also copies the vendor's excise invoice number and the serial numbers of the entries in the RG 23A, RG 23C, and personal ledger account (PLA) registers.4. Enter the internal document number of the excise invoice sent by the factory.5. Select an item and choose More documents to go the excise invoice details screen.In the case of direct purchases, there will not be any excise invoice in the system, so leave the internal document field blank. The vendor's invoice will show the details of the excise invoices through which excise has been paid for the item that is being dispatched. You can enter these details here.6. For each item, the chapter ID, excise base value, and excise duty amounts are defaulted from the purchase order. You can change them if there is any difference. Enter the excise amount paid and the receipt quantity. You also enter the Part II register serial numbers with which the excise duty was paid and the excise registration information from the original

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excise invoice.7. Go back to the item details screen.8. Save the excise invoice.The system creates an entry in register RG 23D. You can change the excise invoice as long as it has not been used in any sales.

Assigning Excise Invoices to a Delivery UseYou follow this procedure to specify which excise invoices are to be assigned to a delivery from a depot (or other material document).You can also automate this procedure, using the batch selection program (J_1IJCHK), by making the appropriate Customizing settings in the Country Version India (CIN) Implementation Guide (IMG).Procedure1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Depot ® Create/Change/Display ® Delivery or Material Document ® RG 23D Selection.2. Enter the delivery document number or the material number and choose .3. Select the excise invoice you want.4. Choose .5. Choose Excise invoice.A list of excise invoices appears. These are the excise invoices at the depot with a balance quantity.The system also shows a list of the A certificates that can be used. You can pick up any of the A certificates, but they must be for the same excise invoice. You can only pick up an A certificate in its entirety. You cannot select part of an A certificate.6. Select the excise invoices that are relevant to the delivery.7. Specify what quantity to be used from each excise invoice.The system recalculates the excise accordingly.8. Go back to the item details screen.9. Save the data.ResultThe system creates an entry in register RG 23D and generates the depot excise invoice numbers.If you selected any A certificates, the system also generates additional entries in the RG 23D register. The system marks the original A certificates as updated, so that they cannot be used for any other removals.

Creating Excise Invoices UseThis is the procedure that you follow to create an excise invoice for the less common types of goods movement.Procedure1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Other Movements ® Create/Change/Display ® .2. On the selection screen, enter data as required, including:(i)Referencegroup boxSpecify which document you want to create the excise invoice for and which excise group it is for.(ii)Detailsgroup boxSpecify the vendor or customer that you are sending the invoice to.3. Choose .If you entered an internal document number, the system copies the item details from it.4. Choose .5. Enter line items for each of the materials to be included in the excise invoice. For each item, enter the following data:(i)Material(ii)Quantity(iii)Unit of measure(iv)Base value(v)Excise duty6. To pick the rate and amount from a specific excise invoice, choose Get excise invoice.7. Save the excise invoice.If you are using the one-step procedure, the system creates and posts an excise invoice. Otherwise, the system saves the information but does not make any postings: it now has to beverified.

Verifying and Posting Excise Invoices UseYou follow this procedure to verify that the information in an excise invoice that has already been created, and to post it once you are satisfied.

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ProcedureFrom the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Other Movements ® Posting.1. Enter the internal document number of the excise invoice.2. Choose Release to accounting.The system displays the excise invoice. The excise duty that is to be posted is displayed at the foot of the screen, which you can change if necessary.3. To access the balance utilization, choose .4. To display the balance available on the CENVAT accounts, choose Account balances.5. Save the excise invoice.The system generates the accounting documents.6. To print the excise invoice, choose .

Making a Transfer Posting UseIn this procedure, you make a transfer posting for the goods ordered by another plant. For moreinformation about this function, see Entering the Removal from Storage at the Issuing Plant.Procedure1. From the SAP Easy Access screen, choose Logistics ® Materials Management ® Inventory Management ® Goods Movement ® Transfer Posting.2. Choose Movement type ® Transfer posting ® Plant to plant ® To stock in transit.3. Enter the number of the issuing plant and storage location.4. Choose To purchase order.5. In the dialog box, enter the number of the stock transport order that the receiving plant created and choose6. Check the data.7. Save the transfer posting.

Transaction Codes for India Transaction ActionJ1I2 Prepare a sales tax registerJ1I3 Create outgoing excise invoices in batchesJ1I5Update the RG 1 and Part I registersJ1I8Post the challan used to remit TDSJ1IC194CCreate annual return under section 194 C (Classic TDS)J1IC194DCreate annual return under section 194 D (Classic TDS)J1IC194ICreate annual return under section 194 I (Classic TDS)J1IC194JCreate annual return under section 194 J (Classic TDS)J1IEXIncoming Excise Invoices (central transaction)J1IEX_CCapture an incoming excise invoice (excise clerk)J1IEX_PPost an incoming excise invoice (excise supervisor)J1INBANKPost a bank challanJ1INCANCCancel a vendor withholding tax certificateJ1INCERTPrint a vendor withholding tax certificateJ1INCHLNCreate a remittance challanJ1INCUSTPost a customer withholding tax certificateJ1INHCWithholding Tax Migration Health Check ProgramJ1INMIGWithholding Tax Data Migration Tool

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JI1NCHLCCreate a remittance challan for customersJ1INCCPrint customer withholding tax certificatesJ1INMISWithholding Tax Information SystemJI1NARPrepare annual returns (Extended Withholding Tax)J1IF01Create a subcontracting challanJ1IF11Change a subcontracting challanJ1IF12Display a subcontracting challanJ1IF13Complete, reverse, or recredit a subcontracting challanJ1IFQReconcile quantities for subcontracting challansJ1IFRList subcontracting challansJ1IHMake a CENVAT adjustment postingJ1IINCreate an outgoing excise invoiceJ1IJAssign excise invoices to a delivery for sales from depotsJ1INJVAdjust withholding tax ItemJ1INREPReprint a vendor withholding tax certificateJ1INREVReverse a remittance challanJ1INPRCalculate withholding tax on clearing accountsJ1INUTClear withholding tax on clearing accountsJ1IRDownload register dataJ1ISProcess an excise invoice (outgoing) for other movementsJ1IUProcess exemption formsJ1IWVerify and post an incoming excise invoiceJ1IXCreate an incoming excise invoice (without reference to purchase order)J2I8Transfer excise duty to CENVAT accountJ2IDArchive tax deducted at source (TDS) documentsJ2IELocate tax deducted at source documents in archiveJ2IURemit excise duty fortnightlyJ2I9Monthly CENVAT returnJ1IGExcise invoice entry at depotJ1IGACreate additional excise entry at depotJ2I5Extract data for excise registersJ2I6

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Print excise registers

Sales from Factories PurposeThis process describes how the SAP System handles the sales process, allowing for the creation of excise invoices, which you have to send with each delivery that is subject to excise duty. There are two scenarios, depending on whether you want to send the commercial invoice along with the delivery or at a later date.PrerequisitesIn order for the system to be able to copy the information from document to document, you must have set up the copying control procedures in Customizing for Sales and Distribution (SD). This differs according to when you want to send the commercial invoice:1. Along with the deliveryIn this case, the document flow would be OR (standard sales order type) – LF (standard delivery type) – F2 (invoice).2. At a later dateThe document flow would be OR – JF (delivery type, a copy of LF) – JEX (pro forma billingdocument type, a copy of document type F8) – F2.In addition, you must also have maintained the settings in the Country Version India (CIN) Implementation Guide (IMG), by choosing Global Settings ® Assign Excise Invoice Billing Type to Delivery Type.A sample pricing procedure, JFACT, is provided for this sales procedure.Process Flow1. The sales clerk creates a sales order, following the(i)standard procedure.There are special procedures for:(i)Customers in possession of exemption forms(ii)Exports2. The shipping clerk creates a delivery, again, following thestandard procedure.On the initial screen, you set the appropriate delivery type (see above).3. In the warehouse, the storeperson issues the goods.The system only allows users to create a pro forma excise invoice if the delivery is complete, so as to prevent them from creating multiple pro forma excise invoices.4. What you do at this stage depends on whether you want to send the commercial invoice along with the delivery or whether you want to invoice the customer later.(A) If the invoice is to be shipped with delivery, the shipping clerk:(i)Creates an invoice, following the standard procedure.(ii)Creates an excise invoice from the invoice(B) If the invoice is to be sent on at a later date, the shipping clerk:(i)Creates the pro forma excise invoiceThe pro forma excise invoice is only required for technical purposes and is not sent to the customer. The system does not make any accounting postings at this stage.(ii)Createsan excise invoice from the pro forma excise invoiceIn both these cases, the system creates an accounting document to post the excise duty to aclearing account.Instead of creating excise invoices manually, you can also have the system create themautomatically. Alternatively, you can create them in batches.5. You ship the goods.6. When the time comes to invoice the customer, you create the invoice, following the standard procedure.Irrespective of the number of excise invoices that you have issued, you can combine the delivery items in a single invoice (if the standard requirements are met).

Sales from Depots PurposeYou may sell finished goods directly from the place of manufacture, as described under Sales from Factories, or you may first ship them to a separate location for storage (a depot), from where you will sell them. The second procedure is described here.Sales from depots are handled differently from sales from factories because of excise law: Excise duty is payable when you send the goods from the factory to the depot, but it is not levied again when you sell the goods.Sometimes when you make a final sale of goods from a depot, price escalations could have happened with retrospective effect. In such scenarios you need to pay the extra excise duty at the factory using an A Certificate. You need to register the A certificate details in the RG 23D register and the excise recovered from the customer.Prerequisites

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You have customized:1. Stock transport processing, in Customizing for Materials Management (MM), by choosing Purchasing ® Purchase Order ® Set Up Stock Transport Order2. The copying control for copying stock transport order NL to excise invoice JEXYou make this setting in the Country Version India (CIN) Implementation Guide (IMG), by choosing Sales and Distribution ® Assign Excise Invoice Billing Type to Delivery Type.3. The item category NLN (standard transport order) so that it is relevant for billingYou do this in the standard IMG, in Customizing for Sales and Distribution (SD), by choosing Sales ® Sales Documents ® Sales Document Item.Process Flow1. You create the sales order, following thestandard procedure.The standard pricing procedure for depot sales is JDEPOT.2. You create the delivery, again, following thestandard procedure.3. Youassign excise invoices to the delivery or material document.4. Youverify that you have selected the correct excise invoices and post them. Alternatively, if you have selected the wrong excise invoices, you can cancel the assignment.5. You create the invoice, following the standard procedure.

In India the central government and state government IMPOSES certain TAXES on MANUFACTURES or GROUP OF PEOPLE or INDIVIDUAL for certain objectives.The total TAX SESSION STRUCTURE has been classified into 1) EXCISE DUTIES or CENVAT (central VAT) 2) SALES TAX (VAT) 3) WITH HOLDING TAX (TDS)

1) EXCISE DUTIES or CENVAT (central VAT) ::---- It is a Tax, in India on the MANUFACTURING of exsisable goods by the manufactures. When those goods LEAVES manufacturing premises. They are 3 types of EXSICE DUTYS and 2 types of CESSES are going to be collected .That areA) BASIC EXCISE DUTY (BED) ::--It is going to LEAVIED ON food stuffs, metals ,machinery and leather goods etc..B) SPECIAL EXCISE DUTY (SED) ::-It is LEAVIED ON luxurious goods , pan masala , sparkling water, furses, yachts etc…C) ADDITIONAL EXSICE DUTY (AED) ::--- It is LEAVIED ON textile ,sugar ,cotton ,wool ,etc CESS:-A tax LEAVIED ON foodstuff, and education….2) SALES TAX (VAT)::---A TAX levied on sale of products and it is on gross price on goods INCLUSICE EXCISE DUTYThere are 2 types of sales taxes are going to be imposed. That area) CENTRAL SALES TAX (CST)::- Same rate through out the COUNTRY..b) LOCAL SALES TAX (TAX) ::-- Same rate through out the STATE..

3) WITH HOLDING TAX (TDS)::- ( TAX DEDUCTION AT SOURCE ) ::-- According to the INCOME TAX 1961 TDS- is going to be carried out ona)payment to the contractors and subcontractors (SEACTION 194 C)b) Insurance commission (SEACTION 190 D)c) Rentals (SEACTION 194 I )d) Fees for professional or technical services (SEACTION 194 J)e) Interest other than interest on security (SEACTION 194 A)

EXCISE DUTY ONPROCUREMENT:-On the procurement of line items, capital goods etc.. Different types excise duty are LEAVIED according to the material type and there chapter IDS.So as to calculate excise dutys SAP has delivered different types of pricing procedure in FI MODULE. That areTAXINJ::- formula based (and condition based also)

TAXINN::-Only condition based with relevant condition types. When purchase order is going to be created system automatically calculates relevant excise components by using pricing procedure along with respective “MM and SD” pricing procedure..

Depending upon the plant excise dutys can effect all materials on INPUTS against OUTPUTS.

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Manufacturing plants only can effect excise duty excise duties on input materials against output materials. And depot cannot offset any against output.

Business has to REMIT the excise duties that are collected from customers to the central excise monthly once from CENVAT ACCOUNT or PLA A/C.

For some industries business are allowed to set of certain percentage of excise duties only. the remaining amount is going to be added to material value.(ASSESABLE VALUE)

Small scale industries are allowed to LEAVIED excise duty’s at reduced rates. and they can file the returns quantity once (3 months).

--:: EXSISE REGISTER ::--

According to excise authority business has to maintain no. of register that capture, excise related data.EX:- excise duty, goods movement , like inward or outward

A) RG-1 :_In this excise register ALL goods movements of FINISHED PRODUCTS are going to be captured and it is going maintained MANUFACTUREING PLANTS.During runtime of application system doesn’t update/generate entries in RG-1. By using certain standard reports only this REGISTER gets updated.B) RG 23A/ 23C::-This register records goods receipts and goods issues of excisable materials that are manufactured by manufacturing plant.That consists of two types. That area) It shows the quantity of excisable materials. and it creates entry for all excisable materials when MIGO goods receipts takes place and it will ask the user whether it has to create PART-1 of RG 23A or RG23C..NOTE:-system doesn’t generate PART-1 entry for ‘’GOODS ISSUES’’, except for scenarios like returns to vendor and STO’s..b) PART-2 :-- IT Shows the amount of excise duty on the excisable material and system automatically creates PART-2 entries as soon as incoming/outgoing excise invoice are created and posted with relaxant PART-2 entrys in RG23A/RG23C. System automatically assigns one “serial number- 1” for all entrys in part-2 and it generates one accounting document (SA) and transfer various types of excisable dutys to appropriate CEN VAT account.

RG23A for RAW MATERIALS…RG 23C for CAPITAL GOODS…c) RG23 D::-- it is a register that is going to be used to capture all types of goods movement at DEPOT only…When goods receipts takes place system automatically generates PART-1 entries in RG 23D.For every goods receipt system generates “serial no” and for every line item has its own “FOLIO” number…In addition to these register other register likePLA (PERSONAL LEDGER A/C) ::-It shows the bank a/c which is going to be transfer excise duty to excise authority’s.. D) RT-12 ::- IT is summarization of CENVAT and PLA for specific period.. EX:- monthly once. EXCISE DUTY ------ SALESBy using various pricing procedure (OVKK)JINFAC- INDIA FACTORY SALESJINSTO – INDIA STOCK STRANSPORT ORDERJINDEP – INDIA DEPOT SALESJINEXP – INDIA EXPORT SALESFACTORY SALES ::-WHEN METERIAL going to be sold to the customer or to its depots excise invoices to be created with ret to commercial invoices or Performa excise invoice..

CONSACTIONAL / EXMPTION FO RM: - customer cab submit exemption form to get full or half exemption on excise duty.Ex:- export sales.. During sales ordering processing by using tax classification number as a zero.-NO TAX.. tax exemption can be specified.

TYPES OF EXMPTION FORMS::--

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A) FORM-C::- Govt pays to the business as customer pays to the govt in advance.sB) FORM-F::- TO excise duty-for intercompany salesC) FORM-H::- For consignment ..D) FORM ARE-1 , ARE-2, ARE-3 ::-ARE-1 :- For export sales for “excisable materials”ARE-2 :- For export sales for “ NON-excisable materials”ARE-3:-For deemed exportsB) STOCK TRANSFER SALES::-- So as to avoid excise duty multiple times manufacturing plants establish various deports as PLANTS.. so that stock are going to be replenished from manufacturing plants to depots through ST0 along With excise invoice and that as to be captured and passed to there customers by depots. So that depots need not to created new excise invoices.C) DEPOT SALES ::-Depots receives the stock along with excise invoices and passed to there customer as it is..D) EXPORT SALES::- When business procures and produce materials that intended to export on those materials excise duty need not to be paid as long as they accomplish consational FORM ARE-1 or ARE-2 or ARE-3.. If they were exported with in allowed export period otherwise exporter has to FORGO. exemption on excise duty on CENVAT CREDIT has to reversed. They are 3 types of exports can be identified..A) EXPORT UNDER BOND and NO BOND.B) EXPORT UNDER CLIENTS FOR REBATESC) DEEMED EXPORTS

LOGISTICS –GENERAL CIN SETTINGSIMG LOGISTICCS GENERAL-> TAX ON GOODS MOVEMENT INDIA-> BASIC SETTINGS->a) AINTAIN EXCISE REGISTATIONS:-Every organization should be registered with local excise registration for which excise department grants excise registration no.Go to new entries and define excise registrations-Ex :- 01- plant 02- depotEXCISE REG 1:-Ecc no :- ECC/1/2001EXCISE REG NO REG -10001EXCISE RANGE BANGULORE RANGEEXCISE DIVISION Bangalore divCOMMISSIONRETE Karnataka commissionereteLiable to AED- CHECK ITLiable to SED- CHECK ITLiable to CESS- CHECK ITEI TERMS -- 2REG. SET--- sample excise registrationPARTIAL CREDIT-CHECK IT INDICATOR NCCDCheck liable to AED , SED, CESS ,, if one plant is liable to pay all this excise duties in addition to BED.EI-> EXCISE INVOISE ITEMS:- specify no.of excise line items that are allowed in excise invoices by local excise authority.REG.SET::-- Specify description of excise registrationCheck PARTIAL CREDIT:- Check this control as a prerequisite to claim partial credit by excise registration.B) MAIN TAIN COMPANY CODE SETTINGS::-Go to new entries.. and maintain table..CENVAT document type ::- SAUTILIZATION FU document ::- SADebit a/c over rate ::- CHECK IT.AUTOMATIC ADJUST indicator ::- CHECK IT.IMMEIDIATER credit on capital goods ::- CHECK IT..SPECIFY first month ::-4- APRIL of the fiscal year for V3Excise selection days ::-ex: 30 days..No of excise invoice ::-10Excise selection procedure ::- FIFO or LIFORounding duty on procurement ::- check it

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Rounding duty on removel ::- it is for out going invoices.Exchange rate type for CVD ::- M- StandardCVD A/C ::- 14810000- customs provisionC) MAINTAIN PLANT SETTINGS ::-Go to new entries..and maintain table..Specify plant ::- MUP1 , MUP2Check depot indicator ::-to specify technically the plant as a depotExcise Registration ::- MUP1—01 MUP2-- 02

Goods recipts-GR’S per EI :-BLANK— single goods recipt 1 – multiple goods recipts , single credit. 2- multiple goods reciepts multiple credit..The value of this field specifys whether single or multiple credit can be taken on multiple credit goods recipts.D) MAINTAIN EXCISE GROUPS ::- go to new entries.. and define two excise groupsONE for PLANT.ANOTHER for DEPOT..EXCISE GROUPS :- assign excise registrationsEx:- 01 – MUP1 02- MUP2.NO.of GR’S per EI:- EX:- 1Default challan qty for GR ::- check it..OUT GOING EXCISE INVOICES::--Excise invoice during belling :-- if it is activated system generates excise invoices as soon as commercial invoice has been saved , so that user can’t create excise invoice manually..Create and post invoice single step ::-- if it is activated excise invoices can be created and posted in a single step by single user. So that excise clerk and exsice supervisor can’t perform to separate transactions..PART 1 posting trigger ::--CHECK CONSUMPTION ::- If it is activated system automatically part-1 rg23 A.It is for capital goods recipts..DEPOT SETTINGS ::-- It is for DEPOT..MIGO settings ::- ( for sd and mm )—Excise invoice capture ::-- check this control to capture excise invoices at thaetime of goods recipts..POST EI in MIGO ::--If it activated user at manufactures plant to post incoming and outgoing excise invoices and also it enables the users at depot for post incoming excises and RG23 D selection..DUTY Diff at GR ::-- If it is activated system allows the user to post GR even through excise invoice has been changed . ex:- excise amounts..EXCISE CREATE/ RG23 D selection ::-- if it is activated then it allows the user at manufacturing plant to create , outgoing invoice when goods issue takes place . and allows depot user RG23 D.UPDATE RG1 at MIGO ::--If it is activated system automatically update entries in RG 1 register , when goods movement takes place ( GR ) manufacturing plant – it is only for finished products.DEPOT SETTINGS ::---Depot indicator :- active this control to specify one control group belongs to one DEPOT..FOLIO NO ::-- Check this control to as a prerequisite to generate FOLIO no’s .. for each line item in RG 23 D REGISTER… DEPOT EXCISE INVOICE ::-- If it is activated system automatically verifies and post the excise invoices , that were assigned to delivery from depot , in depot sales…E)MAINTAIN SERIES GROUP ::-- Series groups allows us to maintain multiple no.ranges for outgoing excise invoices. And that are to be declared wit local authoritys..Go to new entries and maintain table..Series group :- 13 ,14Excise register -01 ,02No.of utilization ::-( check it both ) Check this control if manufactureing plant does’t need any cenvat utilization.. If it is activated system will create an excise invoices under specified series group without posting and without creating PART-2 ENTRIES…IMM. UTILIZATION ::- if it is activated system automatically pays the excise amounts from CENVAT a/c(debited) and creates part-2 entries as soon as business creates excise invoices and it will be listed in the fourth night ( 15 days ), or monthly utilization list…

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EXPORT PERIOD ::- Specified the time period with in which business has to export the goods otherwise exemption on BED has to be FOREGO…REBATE PERIOD ::- Specified the REBATE PERIOD in which the business has to reclaim any excise duty that has been paid already on exports . it is relevant for exports under rebate..FAST CREDIT :- Check this control as a prerequisite system automatically credits the excise duty from ARE-1 back to the running bound a/cs soon as business enter data on which counter signed ARE-1 from customs office..

F)MAINTAIN EXCISE DUTY INDICATOR ::---- Go to new entries and maintain table

EXCISE INDICATOR DISCRIPTION 1 - 100%TAX 2 - 50 % TAX 3 - NIL DUTYG) MAIN SUBTRANSATIONS ::-- GO to new entries…and define subtransactions type..EX ------ EXPORTSRE-----REVERSALSS2-----CANCELS3-----IMPORTSSubtransaction type one of the factor in a/c determination . and it can be to differensiate a/c determination process….H) DETERMINATION OF EXCISE DUTY ::----1) SELECT TAX EXCISE PROCEDURE :- COUNTRY PROCEDURE India(in) ---- TAXINN2)MAIN TAIN EXCISE DEFAULTS:--- Go to new entries and maintain tableTAX PROCEDURE CVD CONTENT EXPORT TAX CODE TAXINN -------- JCV1 ------ A0 Assign relevant condition type of BED,AED, SED and CESS , EX:- JEXPI)CONDITION BASED EXCISE DETERMINATION :--1) TAX CODE FOR PURCHASING DOCUMENT :- (for MM)2) ASSIGN TAX CODES TO COMPANY CODE :-- go to new entries and maintain table.Company code tax code MUIL ----- V0 MUIL ----- V1 MUIL ----- V2(NOTE :- If tax codes were not assigned in this table system does’t calculate input and output taxes in respective documents ) 3)SPECIFY CONDITION TYPES:- go to new entries and maintain table… JINFAC , JINEXP , JINSTO ,JINDEP ,TAXINN.Make sure that FI and SD Tax procedure taxinn ,jinfac,jindep ,jinexp ,jinsto , have ED and total excise condition types mandatory.In this work step all a/cs receivable and a/cs payable condition types should have been assigned to TAX procedure. Othrwise system does’t copy excise component from commercial invoice to excise invoice…… ============= basic settings 1 is OVER ====================

2)MASTER DATA ::------A) MAINTAIN CHAPTER ID’S :--Go to new entries and maintain tableCHAPTER ID :- 1000.01UOM EXCISE :- EAB) ASSIGN USERS TO MATERIAL MASTER SCREEN SEQUENCE FOR EXCISE DUTY :---Click on USER SCREEN REFERENCE .. go to new entries..

User name ---- screen refSAPUSER --- 01

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In this work step respective user id’s should be assigned does’s activate CIN tab pages in customer master and vendor master…C) ACCOUNTS DETERMINATION :-I) DEFINE G/L ACCOUNTS FOR TAX:- (OB40)II) SPECIFY EXCISE A/CS EXCISE TRANSACTIONS :- Go to new entries and main tableEXCISE TRANS TYPE:- DLFC ,It specify what kind of excise transaction it is.. ex:-DLFCSUB transactions types :- BLANKDEBIT/CREDIT INDICATOR :- CR creditA/C NAME :- PLA BED A/CIII) SPECIFY G/L A/CS FOR EXCISE TRANSACTION :--Go to new entries maintain tableEXCISE GROUP:--- 13EXCISE TRANS TYPE :- DLFCCOMPANY CODE :- MUILCART OF A/CS :- CAINRG23A BED :- 40011000G/L A/Cs :- 40011000RG23A SED :- 40011000IV) DEFINE FORM TYPES :-FORM FORM TEXT FORM REQUIRED TAX C - FORM –C ---- CHECK IT 2F - FORM –F ---- CHECK IT 2H - FORM –H ---- CHECK IT 2

VI )BUSINESS TRANSACTIONS.:::-----A) INCOMING EXCISE INVOICES :- Specify which movement type invoices excise. New entries

Movement types Register 561 --- RG1 601 --- RG1 315 --- RG1 311 --- RG1 313 --- RG1 301 --- RG1 303 --- RG1 305 --- RG1 643 --- RG1 645 --- RG1 647 --- RG1 641 --- RG1 101 --- RG1 ( Imp NOTE::--I f relevant movement types are not assigned system does’t update registers for each goods movement )b) UTILIZATION DETERMINATION ::----- Select standard excise group , copy and RENAME without excise groups and specify BED PERCENTAGE(%) FOR utilization 50 % or 100 %..E2 PLAAED PLA AED A/C - 50 %E2 PLAAED PLA BED A/C -50 %E2 PLABED PLA SED A/C -50 %E2 RG23A AED RG 23A AED A/C - 50 %E2 RG 23A BED RG 23A BED A/C – 50 %E2 RG23A SED RG 23A SED A/C -50%

c) Excise registers::--Specify SAP SCRIPT FORMSSelect standards copy and rename all with our company code….SAP has developed copy certain standard SMART FORMS for all registers.. these can be used as a template and can be modified according to business requirement….

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=== BASIC SETTINGS ARE OVER ====

------------------------- TRANSACTIONS ------------------------- 1..FACTORY SALES :-------(JINFAC)When manufactureing plant dispalches excisable materials to the customers and to ots depots excise invoices has to be created ,in this scenario there are two sub scenarios existed. That areA) Commercial invoice along with deliveryB) Commercial invoice after delivery. A) COMMERCIAL INVOICE ALONG WITH DELIVERY :-IMG SETTINGS :-IMG LOGISTICES GENERAL->TAX ON GOODS MOVEMENT->INDIA-> 1) A/C DETEMINATIONa) define G/L A/CS FOR TAXES :- (OB40):- In this work step output tax transaction type EXD assigned with one G/L A/CS.b) specify excise A/CS per excise excise transaction :- In this work step A/CS names are going to be assigned with relavant / credit indicators for excise transactions.

DLFC – CR Credit—PLABED PLA SED A/CExcise type specifies what kind transactions it is.. DLFC – Goods removes through sales. ARE-1- Export processing UNDER ARE-1 . ARE-3 – Demmed exports UNDER ARE-3. OTHR- Excise invoice for other movements.c)specify G/L A/CS for excise transactions :-- This is called A/C determination for excise duties. Relevant G/L A/CS should be assigned for relevant excise transactions types.2) BUSINESS TRANSACTIONSa) ouy going excise invoices :-1) Assign billing types to delivery type :-- LF- F22) Maintain default excise groups and series group :-s.org --- MUS1D.chnl—D1DIV -----D1SHP.POINT- MUP1PLANT ---- MUP1EXC.GROUP --- E2SERIES GROUP--- S1

3) TOOLS :--Define no ranges (J1I9-T.CODE)Define no.ranges objects – J_1IEXCINV J_1IRG1

IMG settings overMASTER DATA:--XD01 :-- Create customer master , With region 10Customer pricing procedure -1Deliverying plant – MUP1Tax classification no -1And maintain CIN details excise indicator 1-100 % Note down customer number…MM01 :- Create material master With CHAPTER ID in CONTROL CODE FIELD – 1000.01- FORIGN TRADE EXPORT tabVK11 :-Maintain condition records for PROO , JEXP , JLST

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JEXP – 10 % JLST -2 % CIN MASTER DATA Goto J1ILN – cin easy access screenGoto INDIRECT TAXES->MASTER DATA -> J1ID- EXCISE RATE MAINTAINCE ->A) a) MASTER DATA :- 1000.01b) MASTER and CHAPTER ID COMBINATION :- go to new entries and maintain tableMATERIAL NO – 21PLANT – MUP1CHAPTER ID – 1000.01MAT.TYPE- FINISHED PRODUCTSGR-X.REF- 1. Multiple goods recipts and multiple credit.

Material types – A-Assets B- CONSUMABLES C-RG1 N-NON CENVATABLE T-TOOLS This material type specifys two factors to the systemA ) relevant register B ) The CENVAT CREDIT AMOUNT .that is 100 %-or 50% or 0 %c)CENVAT DETERMINATION :- New entries and maintain tablePLANT—MUP1INPUT MATERIAL -21OUTPUT MATERIAL -21INTIAL DATE- 01/04/2012 (fiscal year start date – v3)

B) EXCISE STATUS :-a) Customer excise details :_ our customer details automatically updated.b) Excise indicator for plant :- Company code—nuplPLANT – MUP1FIRST MOUNTH- 04/2012EXC.INDICATOR—1c) Excise indicator indicator for plant and customer :-Exc.ind.company--- 1Exc.indicator customer-1exc.indicator -1

VERY IMP STEP :---PREREQUISITE RG1 REGISTER MAINTAINCE BEFORE GOING TO LIVE ALL OPENING BALANCES OF FINISHED PRODUCTS SHOULD BE UPDATE IN ONE TABLEJ_2IRG1BAL.That should be done in quality and production servers..1. EXGRP2. DATUM3. MATNR4. FORM5. WERKS6. OPFNUOM7. OPBNUOM8. US. NAME9. CPUDT10. CPUTM

Goto se11/ se12- specified table J_2IRG1BAL go to utilitys-> table content-> create entriesSpecify excise group E2 DATE 01/04/2012 MATERIAL -21

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MATERIAL-P/L Save it Goto MB1C – Goto MMBE- check stock

RG1- UPDATIONS- goto J1ILN INDIRECT TAXES-> REGISTERS-> EXCISE TAX-> a) J1I5- Update rg23A/C Issues and RG1 Specify company MUPL Plant -MUP1 Exc.group- E2 Mat.doc.no—49000020 Posting date—today,s dateClassification – RMA-Recipts

SELECT RG1-RegisterClick on F8SELECT DOCUMENT , Click on SIMUATE , click on register entry iconMESSAGE :- Processing over 1 recordsb) J2I5 :- EXTRACTspecify group E2START DATE—01/04/2012END,S DATE- TODAY DATESelect RG1 , click on f8.. now open a pop up box… WITH GREEN RIGHT MARK..c)J2I6- PRINT UTILITY PRORGAMselect RG1EXC.GROUP- E2START DATE- 01/04/2011END DATE- to day,s dateClick on F8 specify OUT PUT devise LP01 Save it TRANSACTIONS :- Go to VA01 create sales order for 10 materials .Go to item condition screen observe JEXP, JLST and JEXT Go to VL01N – carry out picking and PGI…Note material doc. No – 490000221

RG1 – UP DATION :- J1I5—Wih classification key IDH J2I5 - EXTRACT J2I6- FOR PRINT OUTGoto VF01:- Create commercial invoice . and NOTE down commercial invoice number 900000048.Create EXCISE invoice – Go to J1IIN –Indirect taxes-> sales/outbound movements -> excise invoices-> for sales order -> J1IIN-OUTGOING EXCISE INVOICE/ CREATE Click on from billing ( F5 )Specify COMMERCIAL INVOICES NO- EXCISE GROUP E2SERIES GROUP- S1BED—1000/- And observe EXCISE INVOICE TYPE - LOCALBED- 1000/- click on F8.. Specify BED AMOUNT 1000/- in PLA.CHECK IT… message—no errors found ; doc can be postedSAVE IT…. Message--- Excise invoice created . MOD VAT database updated..Display excise invoice J1IIN go to change ICON ………Click on ALTERNATIVE SELECTION icon..Click on DOCUMENT FLOW ( CTRL+ F11 )..

============= FACTORY SALES 1ST SCENARIO IS OVER ==================

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B. COMMERCIAL INVOICE AFTER DELIVERY When commercail invoice is going to be transported after delivery. In this case delivery document JF is going to be used with reference to which proforma excise invoice JEX is created.IMG configuration settings :--Goto OVLK Delivery doc type and define delivery doc type JF.Goto VOFA billing doc type , JEX- Excise invoice india..Copying control 1:- VTLA ----- TA to JFCopying control 2 :- VTFL ----- JF to JEXBilling qunatity—D ,PRICING TYPE – G..Logistices/General configuration settings :--IMG-> Logistices/General -> Tax on goods movement -> india -> business transaction -> outgoing excise invoices -> assign billing type delivery types.. JF --- JEXNOTE :- other configuration settings is SAME as previous scenario..Master data :--- XD01 , MM01, VK11..Goto CIN master data :- goto J1ID main tain CIN MASTER data same as previous scenario..TRANSACTIONS :---- Goto vao1 create sales order.. Goto item condition screen and observe EXCISE , CESS. And VAT…Goto vl01N create delivery by using delivery doc. Type.. JFGoto VF01 create proforma commercial by using doc. Type JEXGoto J1ILNGoto J1IIN - create excise invoice ( LOCAL ) with ref to JEX.Goto VF01 – Create commercial invoice by using doc. Type F2 with ref. to JF..

RG1 UPDATION :- J1I5, J2I5, J2I6===================== FACTORY SALES 2NDSCENARIO IS OVER ====================== 2.. STCOK TRANSFER ORDER- S.T.O – (JINSTO)When manufacturing plant replenishes excisable material to its DEPOTS excise invoice has to be has to be created. So that depot has to capture it has pass the SAME to its customers.IMG configuration settings :-- OVLK –definr delivery types NL.Goto VOFA define JEX.Copying control :- NL TO JEX.Logistices/General configuration settings :-IMG -> Logistices/General -> INDIA -> BUSINEE TRANSACTIONS -> OUTGOING EXCISE INVOICES -> ASSIGN BILLING T0 DELIVERY TYPES --- NL to JEXNOTE:- other configuration settings is SAME as previous scenario..MASTER DATA :- XD01 , MM01 , VK11….CIN MASTER DATA :- goto J1IDMASTER DATA :- CENVAT determinationEXCISE STATUS :-a) vendor excise details. b) Excise indicator plant and vendor..Remaining MASTER DATA is SAME as previous scenario..NOTE :- maintain STO- General- configuration setting:---IMG -> MATERIAL MANEGEMENT -> PURCHASING -> PURCHASE ORDER -> SET UP STOCK TRANSFER OREDR -> DEFINE SHIPPING DATA FOR PLANTSChoose receving plant MUP2 and assign customer number –Choose supplying plant MUP1 and assign SALES AREA……Goto ME21N Create stock transfer order by using doc. Type UB.By specify plant MUP1, Material name qunatity 10, ANDReceving plant MUP2, and storage location SL2..Checking SHIPPING tab and observe

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Check it.. save it.. note down no.4500000024.Goto VL10B -> Create REPLENSHIMENT delivery from supplying plant MUP1 , with ref toSTO number - .4500000024SUPPLYING PLANT – MUP1. Click on F8.. select it and click on BACKGROUND ,Select it and goto detils icon , now open a pop up box… with sales document number. Copy it . and save it…… 80000005Go to vl02N -> carry out PICK and PGI…Go to VF01-> Create PROFORMA INVOICE with ref to REPLENISHMENT DELIVERY..Save it . note down the number—10000005.RG1 UPDATIONS :- J1I5, J2I5, J2I6 …Goto J1ILN -> Goto J1IIN and create LOCAL excise invoice with ref to proforma excise invoice.. J11IIN -> Click on CHANGE ICON excise invoice and check the doc. Flow and excise invoice no…Capturing excise invoice by DEPOT :----Goto J1ILN -> INDIRECT TAXES -> PROCUREMENT -> EXCISE INVOICE -> INCOMING EXCISE INVOICE -> FOR DEPOTS-> J1IG-create / change/ displayExcise invoice –F5-function key Excise group- E3 Material doc. No-Press ENTER….Goto ITEM details ICON ,SPECIFY INTERNAL DOC NUMBER…. YEAR…….Observe total BED AMOUNT-Save it…..MESSAGE :- ENTRY CREATED RG 23 D REGISTER , INC. DOC.NO- 28RG23 D U pdations :--- J2I5 ,And J2I6…….

============ S.T.O IS ONER ============== 3.DEPOT SALES When depot sales the materials to its customers excise need not be calculated secound time . what are the excise invoices has been received from manufacturing plant to depot customers as is is…IMG CONFIGURATION SETTING :---Same as factory salesMASTER DATA :-Goto xd01 create customer master with region 13 - MAHARASTRADELIVERYING PLANT mus2.Save customer number..Goto mm01 – create material..Goto VK11—PR00. JEXP and JLST..CIN MASTER DATA :-Goto J1ID – maintain CIN master data like FACTORY SALES…TRANSACTIONS :----Goto VA01 ..Goto ITEM COND SCREEN Check JEXP and JLST.. Goto VL01N :--- Create OUTBAND DELIVERY with MUS2.Goto VF01 - create COMMERCIAL INVOICE…..Goto J1ILN INDIRECT TAXES SALES and OUTBOUND MOVEMENTS EXCISE INVOICES FOR DEPOTSJ1IJ- Create/ change/ displayGoto DELIVERY RG23 D selection . _ Specify delivery no :-Specify excise invoice no-

Select line item and goto details ICON and click on excise invoice ..Select our excise invoice and click on continue….SAVE IT…….

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Note down depot excise invoice no…Go to RG23D EXTRACTION J1I5, Go to J2I5, Go to J2I6,

=================== DEPOT SALES IS OVER ======================= 4. EXPORTSWhen excisable materials are going to be exported with in specified export period business need not to pay any excise duty as long as it submits ARE documents. Depending up on the export type relevant “ ARE ” document ARE 1 or ARE 2 or ARE 3 is going to be submitted . business has to get different types of excise BOUNDS from the excise department for certain worth of ecsise amounts . excise depot issues diff.types of BOUNDS like.. FIXED BOND , RUNNING BOND , LETTER OF UNDERTAKING , NOBOUND REBATE etc….SCENARIO 1 :- EXPORT UNDER FIXED BOND :- it is a one of the way of exporting goods without paying BED. Is to obtain excise authoritys and fills out ARE1 to go with every export..IMG settings :- IMG-> SALES AND DISTRIBUTION-> FOREIGN TRADE / CUSTOMSA) BASIC DATA FOR FOREIGN TRADE 1) DEFINE BUSINESS TRANS and DEFAULT TYPESa) DEFINE BUSINEE TYPES :- New entries and maintain table..specify country – INbusiness trans – 1discription—PURCHASE/ SALESb) DEFINE DEFAULT BUSINEE TYPES (SD):- New entries and maintain table..Country – INSales org—MUS2D. chnl—D1Item category – TANBusiness trans type—1 2) DEFINE PROCEDURE and DEFAULT VALUES :-a) DEFINE PROCEDURE :- New entries and maintain table.Country – INProcedure—ADiscription—STANDARDb) DEFINE PROCEDURE DEFAULTS :- New entries and maintain table.Country – INSales org—MUS2D. chnl- D1Div—4wExp/ import group- 0001Discription—G0001Item category—TANProcedure—A3 ) DEFINE COMBINATIONS ALLOWED ; BUSINESS TRANS TYPE – PROCEDURE :-New entries and maintain table.Country –INBusiness type –1 Discription—PURCHASE / SALESProcedure – ADiscription—STANDARD4 ) Define PRODCOM numbers :- New entries and maintain table.Country – INPRODCOM no- PRODCOM1

B ) TRANSPORTATION DATA :-1 ) DEFINE CUSTOMS OFFICE :-Country –IN Custoums office- BANDiscription – BANGULORE CUSTOMS OFFICE

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2 ) DEFINE MODE OF TRANSPORT :-Country – INMode of trans . border- 3Discription –ROAD3 )DEFINE VALID COMBINATIONS : MODE OF TRANSPORT- CUSTOMS OFFICE :-Country – INMode of trans . border- 3Custoums office- BAN..4 ) DEFINE DEFAULT VALUES FOR FOREIGN TRADE HAEDER DATA :-New entries and maintain table.Export / import – 2Departure country of expo—INDestination country of expo—USMode of trans . border- 3Domestics mode of transport—3Office of exit – BANExport customs office—BANOffice of destination – USCUSTC) LOGOSTICS / GENERAL CIN CONFIGURAION SETTINGS :--IMG LOGOSTICS / GENERAL -> TAXS ON GOODS MOVEMENT -> INDIA -> A/C DETERMINATION ->SPECIFY G/L A/CS PER EXCISE TRANSACTIONSEXSICE GROUP—E2 , E2E.T.T -ARE1, ARE2CO.CODE ---MUILChart of a/cs—CAINRG23 A BED—24820000 , 24840000G/L A/CS RG-- 24820000 , 24840000 BUSINESS TRANSACTIONS-> OUTGOING EXCISE INVOICES -> MAINTAIN DEFAULT EXCISE GROUPS and SERIES GROUPSMUS2 D2 2W MUP1 MUP1 E2 S1 B- EXPORTUNDER BOND.D) EXPORTS UNDER EXCISE REGULATIONS :-1) EXPORTS MAKE SETTINGS FOR ARE-1 PROCEDURE :- New entries and maintain table..Series group—s1,From – ARE-1Days- 180,Days- 180, -J1IB PRINT OUTS FOR ARE-1 PROCEDURE :-a) Maintain output type :-configure output type—LP01b) Specify printers :- New entries and maintain table..- J1IB- BAP1- SL1- LP01..Check IMMEDEATE and RELEASEc) TRANSACTION CONFIGURATION :-1 ) DEFINE PROCESSING MODES FROM TRANS CODETrans codes-- J1IA101, J1IA102 , J1IA102 , J1IA102 , J1IA102…..Proc modes – A11 CREATE ARE-1 A02 CHANGE A03 DISPLAY A04 POST A06 UPDATEACTIVATE ---------- check ALL

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If this t.codes are activated that system allows the users to perform the function..2 ) J1IA101 A02 Change R07 INTERNAL EXCISE INVOICE Activate it J1IA101 a02 Change R10 ARE1 internal document Activate it..Ifit is activated relevant ref. document types can be use for relevant processing modes..3)MAINTAIN REJECTION CODES :-- New entries and maintain tableR1—DUE TO SHARTFALLS-------------------------- IMG Setting is over -----------------------------------MASTER DATA :-----Goto xd01 – create customer master with Country key –US Customer pricing procedure -3 CIN DETAILS – 1.Goto MM01-Goto VK11CIN Master Data :-- Goto J1ID and Maintain CIN master data in additionPATH :- Goto J1ILN INDIRECT TAXES MASTER DATA EXCISE BOND J1IBN01 –CREATESpecify plant – BAP1BOND TYPE – FIXB-Fixed bondBOND NO—10000.FBBOND VALUE – 10000 /-TYPE OF DISPATCH – Multiple dispatchEXECUTION DATE – Today’s dateEXPIRY – 31/03/2013SAVE IT…. Int bond no. 000000004/2012Goto VA01 – Create sales order for EXPORT CUSTOMER VL01N – Create delivery VF01—Commercial invoice and goto HEADER..FORIGN TRADE/ CUSTOMS tab and maintains DETAILS ….Goto ITEM condition screen FORIGN TRADE/ CUSTOMS tab and maintains DETAILS –Goto J1IIN Create outgoing excise invoice ..Goto UTILIZATION icon and CLICK ON change excise invoice tye –EXPORT UNDER BOND…CHECK IT and save it….. excise invoice created…..A) CREATE ARE-1 PROCESSING ::----Goto J1ILN INDIRECT TAXES SALES/OUTBOUND MOVEMENT EXPORT UNDER EXCISE REGULATIONSEXPORTS INDIVIDUAL/ CENTRAL PROCESSING J1IA101-CENTRAL-CREATE J1IA102-INDIVIDUAL- CREATE..Specify transaction A11 ARE-1 , SPECIFY REF TRANS-R09 OUTGOING EXCISE INVOICESpecify excise invoice no 000000005/2012 press ENTERGoto BOND / UT-1 DETAIL tabSpecify bond no 000000004/2012CHECK IT and POST IT.. ARE NO. 00000000031/2012 has been successfully saved.Goto J1IBN03- DIPLAY BONDAnd OBSERVE the RESERVATION amount 100 /---B) POST ARE-1 :-- The excise CLERK POST ARE1 after approval from excise officer by specifying time and date of dispatch..Goto J1IA101 POST—Specify A04-POST , Specify ref doc.no- R10ARE1- INTERNAL DOC Specify internal no 00000000032/2012

Check document process – IN PROCESS..Goto CERTIFICATION DATES tab specify dispatched on – TODAY’S DATE Specify time currebt time..Check it and post it……… PRINT….Goto J1IBN03- Display BOND BOND CURRENT BALANCE-9900/- RESERVATION AMOUNT 0/-….UPDATE ARE -1 :- When goods are arrived to customs those will be checked along with excise invoice as well as ARE -1 and they take -3… ARE -1 Copies……..

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1-COPY will send to business :- so that excise CLERK has to maintain arrived at customs , counter signed by customs and arrive back by going to J1IA101 UPDATE ARE -1 :- Select update A06- UPDATE R10 ARE1- INTERNAL DOC – 0000000032/2012Press ENTER……Goto CERTIFICATION DATES tab and MAINTAINARRIVED AT CUSTOUMS - Current date.COUNTER SIGNED BY CUSTOMS – Current date.ARRIVED BACK -- Current date.Check it and POST IT…………….Goto J1IBN03 BOND WHERE USED LIST click onCkeck status L Arrived BACK from customs…SENDING ARE-1 TO LOCAL EXCISE DEPARMENT :- After updating ARE-1 in SAP SYSTEM business has to SEND the ARE-1 to LOCAL EXCISE DEPARTMENT.Goto J1IA1101 – UPDATEA06-- 0000000032/2012 tab….Goto CERTIFICATION DATES tab sends to excise depot- Current date..

CHECK IT and POST IT…..Goto J1IBN03 – DISPLAYBond 000000004,Year 2012,Check status –E SENDS TO LOCAL EXCISE DEPOT.CLOSEING ARE-1 :-When excise depot sends the CONFIRMATION of ARE-1, then we close the ARE-1 BY MAINTAINING “EXPORT CONFIRMED” field in the DATES tab…..page….A06 UPDATE R10 ARE-1 – internal doc no..Goto CERTIFICATION DATES tabEXPORT confirm - Current date..Check it and POST IT………..Goto J1IBN03 – bond where used list---CHECK the status X- “ CLOSED “……….. ==================== EXPORTS SALES IS OVER ======================