sap mm cin

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The Complete Guide Material Management Country India Version (MM-CIN)

Applies to:

This article is applicable for SAP MM Module of SAP version SAP 4.7 till SAP ECC 6.0. For more information, visit the Supply Chain Management homepage.

Summary

This Article Describes the MM-CIN Process. The complete solution is provided with user manual and configuration steps to understand the Excise Process in India.

Author(s): Pardeep Malik

Company: IBM

Created on: 01 December 2011

Author Bio

Pardeep Malik is SAP Certified Consultant having 5.5 Yrs SAP Experience. He is working as a Materials Management consultant with IBM India Pvt Ltd. His area of interests is SAP MM-CIN, WM and LE.



Table of Contents

Overview of CIN ................................................................................................................................................. 3 Excise Duty: .................................................................................................................................................... 3

Types of Register in CIN ....................................................................................................................... 5 Configuration Steps .............................................................................................................................................. 6

Raw Material PO Cycle ............................................................................................................................................. 27 Reverse Excise Invoice ....................................................................................................................................... 46 Return to Vendor ................................................................................................................................................ 51

Subcontracting Cycle ................................................................................................................................................ 54 Subcontracting with Project Stock ....................................................................................................................... 69 Subcontracting of By Product .............................................................................................................................. 81

Import Cycle .............................................................................................................................................................. 91 Asset Procurement Cycle .......................................................................................................................................... 97 Registers ................................................................................................................................................................. 102

Excise Opening Balance Uploading ............................................................................................................... 112 RG23A Part II and PLA Registers updation ............................................................................................................ 114 RG23C Part II .......................................................................................................................................................... 116 RG23C On Hold ...................................................................................................................................................... 118

Related Content ............................................................................................................................................. 120 Copyright ........................................................................................................................................................ 121



Overview of CIN

SAP- COUNTRY INDIA VERSION (CIN) is designed for use by business with operations in India. It comprises function designed specifically for India, a localization implementation guide (IMG), and a country template to help us customize the system according to local requirements.

Most of the country-specific functions for India relate to Financials and Logistics, and center around taxes, including: Excise duty and the central value-added tax system (CENVAT) Tax deducted at source (TDS) Sales tax

Country-Specific Functions Country Version India comes with functions for calculating, posting, and remitting excise

duty The system determines the excise and other taxes on your sales. You can create outgoing excise invoices and make the appropriate accounting postings. The system offers functions for domestic and export sales from factories and depots. All goods movements are recorded in the appropriate excise registers as required by the

Regulations. You can remit the excise duty using the delivered functions.

The country template for India comes with sample pricing procedures, including all taxes, and settings for automatic account determination to the appropriate excise accounts.

Excise Duty:

Excise duty is a governmental levy on specific goods produced and consumed inside a country. In India, Central Excise Act, 1944 governs the excise matters like defining manufacturing, factory, excisable goods etc.

In India, excise duty is a tax on the manufacture of goods that is levied when goods leave the place of manufacture. Manufacturers can set off the duty paid on input materials against their output duty, a procedure known as central value-added tax (CENVAT).

Types of Excise Duty

Basic Excise Duty

This is the duty charged under section 3 of the Central Excises and Salt Act, 1944 on all excisable goods other than salt which are produced or manufactured in India at the rates set forth in the schedule to the Central Excise tariff Act, 1985.

Special Excise Duty

As per the Section 37 of the Finance Act, 1978 Special excise Duty was attracted on all excisable goods on which there is a levy of Basic excise Duty under the Central Excises and Salt Act, 1944.Since then each year the relevant provisions of the Finance Act specifies that the Special Excise Duty shall be or shall not be levied and collected during the relevant financial year.

Some commodities like pan masala, cars etc. are leviable with special duty. These items are covered in Schedule II to Central Excise Tariff.



Additional Excise Duty

Section 3 of the Additional duties of Excise (goods of special importance) Act, 1957 authorizes the levy and collection in respect of the goods described in the Schedule to this Act. This is levied in lieu of sales Tax and shared between Central and State Governments. These are levied under different enactments like medicinal and toilet preparations, sugar etc. and other industries development etc.

Cess

A cess has been imposed on certain products like automobiles, jute, tea, tobacco etc. A education cess is also imposed on the excise duty from the current year.

Education CESS (ECess)

Education Cess has been imposed on all products under the Excise Act, 2005.

The process flow is as below

Purchase Order

EXCISE INVOICE PART2

GR / Part1

Capture Excise Invoice

Transaction Code

J1IEX



Types of Register in CIN

Register Use in CIN 1. Register RG1.

2. Register RG23A, Part 1 & II (Raw Material)

3. Register RG23C (Capital Goods)

4. Register RG23D (applicable only for 1st & 2nd Stage)

5. Personal Ledger Account (PLA).

A record of all receipts and issue related to Excise Materials is being kept in Excise Register RG23A and RG23C by manufacturing plants.

Part 1 shows the quantities of the materials.

Part II shows the accounts of the Excise Duty on the materials and how much you have transferred to CENVAT accounts.

Part 1 Entries:-

Goods Receipts Part 1 Entry in RG23A or RG23C.

Part 2 Entries:-

Excise Invoice Part 2 Entry.

CENVAT Document:-

System automatically generate after Part II Entry.

For Incoming Excise Invoice

A/c Debit Credit

Basic Excise Duty 1500.00

CENVAT Clearing Acct 1500.00



The Configuration Steps for CIN



EXCISE REGISTRATIONS

An entity in India that is entitled by law to produce any goods liable to excise. Each entity is assigned its own excise registration number. Every factory that manufactures excisable goods is required to register separately, so that a business with seven factories requires seven registrations.

ECC NO

A Tax number assigned, in India, by the department of revenue to legal and natural persons liable to excise duty. The taxpayer is required to obtain a separate ECC number for each registered premises.

EXCISE REG. NO

The number used to identify an excise registration. When a business registers with the local excise authorities, the authorities issue it a separate number for each registration.

EXCISE RANGE

A subdivision, in India, of an excise division. The excise ranges are responsible for issuing ECC numbers.

EXCISE COMMISSIONERATE

An administrative body, in India, that assesses and collects excise duty. It reports to the Central Board of Excise and Customs. There are around 90 commissionrates in India.



AED (ADDITIONAL EXCISE DUTY)

A form of excise duty, in India, levied on a select range of products. If you click that check box then it will specifies that the excise registration is liable to additional excise duty.

SED (SPECIAL EXCISE DUTY)

A form of excise duty in India on a limited number of goods. Specifies that the excise registration is liable to special excise duty.

CESS

In India, a tax on the manufacture of certain products.

EI ITEMS (EXCISE INVOICE ITEMS)

Shows the maximum number of the line items that we are allowed to include in a single outgoing excise invoice. This information affects the transactions for creating outgoing excise invoices for factory sales and for other movements. This information is used to split the transfer postings items into multiple subcontracting challans.

PARTIAL CENVAT CREDIT (PARTIAL CR)

Specifies that the excise registration is allowed to credit only a portion of its input excise duty to its CENVAT account. When we post a goods receipt, the system splits the input excise duty on the material into its deductible and nondeductible amounts. It posts the deductible duty to the appropriate CENVAT account, and adds the nondeductible duty to the material value.

This information is also shown when we post the incoming excise invoice.

Maintaining Company Code Settings for Taxes Use

DOCUMENT TYPE FOR CENVAT POSTING

A key that distinguishes the business transactions to be posted. The document type determines where the document is stored as well as the account types to be posted. Controls which document type the system uses when making CENVAT postings in financial accounting.

OVERWRITE DEBIT ACCOUNTS

Allows users, when entering journal vouchers, to overwrite the proposed debit accounts depending on the nature of transaction.

SUBCONTRACTING PERIOD

The maximum number of days that the materials can be with subcontractor without us having to reverse the excise on the CENVAT account. This information is used when we create a subcontracting challan to determine on exactly which date the materials have to be returned by.



EXCISE ROUND OFF

Rounds off the excise duty on each line item in a purchase order. The system rounds the duty off to the nearest rupee. However, if the duty amount is less than one rupee then no rounding is done. It does not round off the CENVAT credit to be taken.

IMMEDIATE CREDIT ON CAPITAL GOODS

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

CVD ACCOUNT

A form of excise duty imposed on imports that are subsidized by the country in which they were manufactured. When we post an incoming excise invoice for goods that we have purchased abroad, the system credits the countervailing duty to this account.

EXPORT EXCHANGE

Specifies which exchange rate type the system uses to translate excise duty when we create an outgoing excise invoice for export sales. Exchange rate type is a key representing a type of exchange rate in the SAP system.

Fill the G/L for Import Provisions



Maintaining Plant Settings for Excise Information

DEPOT

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

EXCISE REGISTRATION

Specify which excise registration this plant belongs to.



GOODS RECEIPT PER EXCISE INVOICE

Specifies whether we are allowed to receive more than one delivery per excise invoice, and if so, whether we can take the CENVAT credit immediately i.e. multiple credits or have to wait until the delivery has been made in full i.e. single credit.

Maintaining Excise Groups Use As per the legal requirement in India each Excise Group has to have one set of books. In this step you are going to configure the Excise Groups for both the plants.



EXCISE GROUPS

A unit within an excise registration, in India, which keeps its own set of excise records. Whereas the excise registration reports to the excise authorities, the excise group is a purely internal organizational unit. Each excise group keeps records of all transaction that have to be reported to the excise authorities. When the time comes to present these records to the authorities, the excise registration compiles the information from all of its excise groups.

COPY TO GR

Instructs the system, when we post a goods receipt using an incoming excise invoice as a reference document, to copy the excise invoice quantity to the goods receipt.

CONSUMPTION

Automatically creates two entries in part I register RG 23A or RG 23C immediately we post a goods receipt for direct consumption, one entry to record the goods receipt, and one for the goods issue.

Goods for direct consumption are not added to a material stock. The system posts them directly to a consumption account. We do not create a separate goods issue.

The goods issue material document that causes the system to create the part I entry for the goods issue. This function overcomes that problem. When we enter a goods receipt for direct consumption, the system automatically creates two parts I entries from the goods receipt document.

EXCISE INVOICE CAPTURE

Enable us to capture incoming excise invoices when we enter goods receipt in the standard goods movement transaction (MIGO) .This applies to manufacturing plants and depots alike.

We enter goods receipt details and the excise invoice information at the time of GR. When we save the goods movement, the system automatically saves the excise invoice, to be posted later using the incoming excise invoices transaction.

RG 23D SELECTION IN MIGO

Enable us to create outgoing excise invoices in manufacturing plants using MIGO when they enter a goods issue in the standard goods movement transaction.

It also enables us in depots to select the appropriate RG 23D entries when they enter a goods issue.

UPDATE RG1 AT MIGO

Creates an entry in register RG 1 immediately we create an outgoing excise invoice in the standard goods movement transaction, MIGO, if the goods in the excise invoice are finished goods.

Otherwise the RG 1 entry is not created until we execute the register update program.

RG 1 is used for the finished goods that we have transferred from the factory to a store. It also shows any sales of these goods.

DUTY DIFFERENCE

Enable us to post incoming excise invoices in the MIGO, even if any of the excise duty information have been changed in the excise invoice tabs. Otherwise the transaction will only allow capturing the excise invoice.



Maintaining Series Groups Use

In this IMG activity, you define the different excise series groups within your company. Series groups allow you to maintain multiple number ranges for the outgoing excise documents.

Based on excise regulations and exemptions from the authorities you can maintain multiple number series for outgoing documents. But each of these series has to be declared to the excise authorities.

EXPORT PERIOD

The export period applies to exports under bond and exports under claim for rebate. The maximum length of time that we are allowed to export goods from India after we have removed them from our premises. If we exceed the export period, we forego the exemption from basic excise duty and we must pay the excise duty to the excise authorities.

If we try to change ARE-1 after the end of the export period, the system issues a warning message. We then have two options:

If we manage to obtain an extension from the excise department, we enter the extension date in the ARE-1. This effectively extends the ARE-1S export period.

Otherwise in the case of exports under bond we must pay the excise duty plus interest. In the case of exports under claim for rebate, we forego the excise duty already paid. We then close the ARE-1 as normal.

REBATE



Under Indias exports under rebate scheme, the maximum length of time that we are allowed to reclaim any excise duty that we have paid on exports.

The system does not offer any functions for controlling, which ARE-1s have exceeded the rebate period. SAP recommends that we create our own program for this purpose, if we wish.

Maintaining Excise Defaults

SELECT TAX CALCULATION PROCEDURE

Here we specify which tax procedure we want to use for determining excise duties and sales taxes on input materials in India.

There are two types:



Condition based excise determination Formula based excise determination

This tax procedure also supports condition-based excise determination, so that we can work with both concurrently. Once we have started using a tax procedure, we cannot switch to another one, otherwise we will not be able to display old documents.

CONDITION BASED EXCISE DETERMINATION

A method that the system uses of determining excise duty in India. This method requires us to create condition records for each combination of vendor or customer and material.

When we create a purchasing document, the system calls the tax procedure assigned to India. The tax procedure finds all of the condition records that we have created for that combination of vendor and material.

When we create a sales document, the excise duties and sales taxes are determined by the pricing procedure.

FORMULA BASED EXCISE DETERMINATION

A method that the system uses of determining excise duty in India.

This method used in the country version India Add-on and requires us to maintain additional data in the Excise Rate Maintenance transaction, J1ID.

Now for Taxinn, just only maintain JCV1.



MAINTAIN EXCISE DEFAULTS

Here we define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination.

If we use condition-based excise determination, we have to only fill the CVD cond. Field

Now Conditions in CIN can be maintained as

Deduct able tax:-

JMOP - IN BED Settoff %

JEC1 - A/P Edu. Cess Settoff

JSEP - IN A/P H Ecess Setoff

JVRD - A/P VAT RM Deductable

SETOFF Must Be Maintained:-

JMX1 -- IN: A/P BED setoff

JEX1 --- Ecess Setoff Sta

JHX1 IN: A/P SECess SOTot

Non Deductable Tax:-

JMIP - IN BED Inventory

JEC2 - A/P Ecess Inventory

JSEI - IN A/P H Cess Inventory

JIPC - IN C Sales Tax INV

JVRN A/P VAT RM Non-Ded.

Condition For CVD in CIN :-

JCV1 - IN CVD e.g. 14%

JECV - IN CVD Prim Edu e.g. 2%

J1CV - IN CVD Sec Edu e.g. 1 %

Also few changes in TAXINN as

JMOP - JI1 India Basic Excise

Assign Tax Code to Company Code



Maintaining Excise Accounts per Excise Transactions

Use In this IMG activity, 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 sub transaction types, Enter the accounts for each sub transaction type as well.

57CM 57F CHALLAN COMPLETION

57FC 57F CHALLAN CAPTURE/CHANGE

57NR 57F NON RECEIPT



ARE1 EXPORT PROCESSING UNDER ARE1

ARE3 DEEMED EXPORTS UNDER ARE3

CAGI CAPITAL GOODS ISSUES

CAPE CAPITAL GOODS

CEIV CANCELLATION OF EXCISE INVOICE

DIEX DIFFERENTIAL EXCISE THROUGH JV

DLFC GOODS REMOVAL THROUGH SALES

EWPO EXCISE INVOICE WITHOUT PO

GRPO EXCISE INVOICE FOR GOODS RECEIPT/PO

MRDY REVERSAL WITHOUT REFERENCE

MRRD REVERSAL INCASE OF COMSUMPTION OTHER THAN PRODUCTI

MRWO CENVAT REVERSALS FOR WRITE OFF

OTHR EXCISE INVOICE FOR OTHER MOVEMENTS

TR6C PLA ACCOUNT ADJUSTMENT THROUGH

UTLZ FORTNIGHTLY PAYMENTS

Excise TT

Sub Transaction Type

DC indicator

Account name

57CM CR CLEAR

57CM DR RG23AT1

57CM DR RG23BED

57CM DR RG23ECS

57CM DR RG23NCD

57CM 1 CR CLEAR

57CM 1 DR PLAAT1

57CM 1 DR RG23AT1

57CM 1 DR RG23BED

57CM 1 DR RG23ECS

57CM 1 DR RG23NCD

57FC CR PLAAT1

57FC CR PLABED

57FC CR PLAECS

57FC CR PLANCD

57FC CR RG23AT1

57FC CR RG23BED

57FC CR RG23ECS

57FC CR RG23NCD



57FC DR CLEAR

57FC 1 CR PLAAT1

57FC 1 CR PLABED

57FC 1 CR PLAECS

57FC 1 CR PLANCD

57FC 1 CR RG23AT1

57FC 1 CR RG23BED

57FC 1 CR RG23ECS

57FC 1 CR RG23NCD

57FC 1 DR CLEAR

57NR CR CLEAR

57NR CR PLAAT1

57NR CR PLABED

57NR CR PLAECS

57NR CR PLANCD

57NR CR RG23AT1

57NR CR RG23BED

57NR CR RG23ECS

57NR CR RG23NCD

57NR DR REVERS

57NR 1 CR CLEAR

57NR 1 CR PLAAT1

57NR 1 CR PLABED

57NR 1 CR PLAECS

57NR 1 CR PLANCD

57NR 1 CR RG23AT1

57NR 1 CR RG23BED

57NR 1 CR RG23ECS

57NR 1 CR RG23NCD

57NR 1 DR REVERS

ARE1 CR CLEAR

ARE1 CR PLAAT1

ARE1 CR PLABED

ARE1 CR PLAECS

ARE1 CR PLANCD

ARE1 CR RG23AT1

ARE1 CR RG23BED



ARE1 CR RG23ECS

ARE1 CR RG23NCD

ARE1 DR REVERS

ARE3 CR CLEAR

ARE3 CR PLAAT1

ARE3 CR PLABED

ARE3 CR PLAECS

ARE3 CR PLANCD

ARE3 CR RG23AT1

ARE3 CR RG23BED

ARE3 CR RG23ECS

ARE3 CR RG23NCD

ARE3 DR REVERS

CAPE CR ONHOLD

CAPE DR ONHOLD

CAPE DR PLAAT1

CAPE DR RG23AED

CAPE DR RG23AT1

CAPE DR RG23BED

CAPE DR RG23ECS

CAPE DR RG23NCD

CAPE DR RG23SED

CAPE IP CR ONHOLD

CAPE IP DR ONHOLD

CAPE IP DR RG23AED

CAPE IP DR RG23AT1

CAPE IP DR RG23BED

CAPE IP DR RG23ECS

CAPE IP DR RG23NCD

CAPE IP DR RG23SED

CEIV CR MSUSP

CEIV DR PLAAED

CEIV DR PLAAT1

CEIV DR PLABED

CEIV DR PLAECS

CEIV DR PLANCD

CEIV DR PLASED



CEIV DR RG23AED

CEIV DR RG23AT1

CEIV DR RG23BED

CEIV DR RG23ECS

CEIV DR RG23NCD

CEIV DR RG23SED

DIEX CR CLEAR

DIEX DR ONHOLD

DIEX DR RG23AED

DIEX DR RG23AT1

DIEX DR RG23BED

DIEX DR RG23ECS

DIEX DR RG23NCD

DIEX DR RG23SED

DIEX IP CR CLEAR

DIEX IP DR ONHOLD

DIEX IP DR RG23AED

DIEX IP DR RG23AT1

DIEX IP DR RG23BED

DIEX IP DR RG23ECS

DIEX IP DR RG23NCD

DIEX IP DR RG23SED

DLFC CR PLAAED

DLFC CR PLAAT1

DLFC CR PLABED

DLFC CR PLACESS

DLFC CR PLAECS

DLFC CR PLANCD

DLFC CR PLASED

DLFC CR RG23AED

DLFC CR RG23AT1

DLFC CR RG23BED

DLFC CR RG23ECS

DLFC CR RG23NCD

DLFC CR RG23SED

DLFC DR MSUSP

DLFC IP CR PLAAED



DLFC IP CR PLAAT1

DLFC IP CR PLABED

DLFC IP CR PLACESS

DLFC IP CR PLAECS

DLFC IP CR PLANCD

DLFC IP CR PLASED

DLFC IP CR RG23AED

DLFC IP CR RG23AT1

DLFC IP CR RG23BED

DLFC IP CR RG23ECS

DLFC IP CR RG23NCD

DLFC IP CR RG23SED

DLFC IP DR MSUSP

EWPO CR CLEAR

EWPO DR RG23AED

EWPO DR RG23AT1

EWPO DR RG23BED

EWPO DR RG23ECS

EWPO DR RG23NCD

EWPO DR RG23SED

EWPO IP CR CLEAR

EWPO IP DR RG23AED

EWPO IP DR RG23AT1

EWPO IP DR RG23BED

EWPO IP DR RG23ECS

EWPO IP DR RG23NCD

EWPO IP DR RG23SED

GRPO CR CLEAR

GRPO DR ONHOLD

GRPO DR RG23AED

GRPO DR RG23AT1

GRPO DR RG23BED

GRPO DR RG23ECS

GRPO DR RG23NCD

GRPO DR RG23SED

GRPO IP CR CLEAR

GRPO IP DR ONHOLD



GRPO IP DR RG23AED

GRPO IP DR RG23AT1

GRPO IP DR RG23BED

GRPO IP DR RG23ECS

GRPO IP DR RG23NCD

GRPO IP DR RG23SED

MRDY CR PLAAED

MRDY CR PLAAT1

MRDY CR PLABED

MRDY CR PLACESS

MRDY CR PLAECS

MRDY CR PLANCD

MRDY CR PLASED

MRDY CR RG23AED

MRDY CR RG23AT1

MRDY CR RG23BED

MRDY CR RG23ECS

MRDY CR RG23NCD

MRDY CR RG23SED

MRDY DR CLEAR

MRRD CR PLAAED

MRRD CR PLAAT1

MRRD CR PLABED

MRRD CR PLACESS

MRRD CR PLAECS

MRRD CR PLANCD

MRRD CR PLASED

MRRD CR RG23AED

MRRD CR RG23AT1

MRRD CR RG23BED

MRRD CR RG23ECS

MRRD CR RG23NCD

MRRD CR RG23SED

MRRD DR CLEAR

MRWO CR PLAAED

MRWO CR PLAAT1

MRWO CR PLABED



MRWO CR PLACESS

MRWO CR PLAECS

MRWO CR PLANCD

MRWO CR PLASED

MRWO CR RG23AED

MRWO CR RG23AT1

MRWO CR RG23BED

MRWO CR RG23ECS

MRWO CR RG23NCD

MRWO CR RG23SED

MRWO DR CLEAR

MRWO IP CR PLAAED

MRWO IP CR PLAAT1

MRWO IP CR PLABED

MRWO IP CR PLACESS

MRWO IP CR PLAECS

MRWO IP CR PLANCD

MRWO IP CR PLASED

MRWO IP CR RG23AED

MRWO IP CR RG23AT1

MRWO IP CR RG23BED

MRWO IP CR RG23ECS

MRWO IP CR RG23NCD

MRWO IP CR RG23SED

MRWO IP DR CLEAR

OTHR CR PLAAED

OTHR CR PLAAT1

OTHR CR PLABED

OTHR CR PLACESS

OTHR CR PLAECS

OTHR CR PLANCD

OTHR CR PLASED

OTHR CR RG23AED

OTHR CR RG23AT1

OTHR CR RG23BED

OTHR CR RG23ECS

OTHR CR RG23NCD



OTHR CR RG23SED

OTHR DR MSUSP

OTHR IP CR PLAAED

OTHR IP CR PLAAT1

OTHR IP CR PLABED

OTHR IP CR PLACESS

OTHR IP CR PLAECS

OTHR IP CR PLANCD

OTHR IP CR PLASED

OTHR IP CR RG23AED

OTHR IP CR RG23AT1

OTHR IP CR RG23BED

OTHR IP CR RG23ECS

OTHR IP CR RG23NCD

OTHR IP CR RG23SED

OTHR IP DR MSUSP

TR6C CR PONHLD

TR6C DR PLAAED

TR6C DR PLAAT1

TR6C DR PLABED

TR6C DR PLACESS

TR6C DR PLAECS

TR6C DR PLANCD

TR6C DR PLASED

UTLZ CR PLAAED

UTLZ CR PLAAT1

UTLZ CR PLABED

UTLZ CR PLACESS

UTLZ CR PLAECS

UTLZ CR PLANCD

UTLZ CR PLASED

UTLZ CR RG23AED

UTLZ CR RG23AT1

UTLZ CR RG23BED

UTLZ CR RG23ECS

UTLZ CR RG23NCD

UTLZ CR RG23SED



UTLZ DR CLEAR

UTLZ IP CR PLAAED

UTLZ IP CR PLAAT1

UTLZ IP CR PLABED

UTLZ IP CR PLACESS

UTLZ IP CR PLAECS

UTLZ IP CR PLANCD

UTLZ IP CR PLASED

UTLZ IP CR RG23AED

UTLZ IP CR RG23AT1

UTLZ IP CR RG23BED

UTLZ IP CR RG23ECS

UTLZ IP CR RG23NCD

UTLZ IP CR RG23SED

UTLZ IP DR CLEAR

Specify GL Accounts per Excise Transactions

Use In this IMG activity, 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 sub transaction types, enter the accounts for each sub transaction type as well.



Define Processing Modes Per Transaction Use

In this IMG activity, you specify which processing modes the user can use in the various Incoming Excise Invoice transactions. This way, you can tailor the transaction to what your users have to do.

Path SPRO Logistics General Tax on goods movement India business transaction incoming excise invoice define process modes per transaction

Define Reference Documents Per Transaction

Use In this IMG activity, you specify for each combination of transaction and processing mode which reference documents you want the users to be able to use.

Path SPRO Logistics General Tax on goods movement India business transaction



incoming excise invoice define reference documents per transaction

Specify Which Movement Types Involve Excise Invoices

Use

In this IMG activity, you specify which movement types relating to goods receipts involve excise invoices.

The system uses this information during the goods receipt procedure. When you post a goods receipt using one of the movement types that you have specified here, the system prompts you to enter the excise invoice number.

Path SPRO Logistics General Tax on goods movement India business transaction incoming excise invoice Specify Which Movement Types Involve Excise Invoices



Assign Billing Types to Delivery Types

Use

You enter outgoing excise invoices by referring to either of the following documents:

Customer invoices Pro forma excise invoices

These options are represented in the system by different document types and document flows.In this IMG activity, you:

Specify which billing document types you use as a reference for CENVAT utilization Assign them to the appropriate delivery document types

Path SPRO Logistics General Tax on goods movement India business transaction Outgoing excise invoice Assign Billing Types to Delivery Types



Maintain Default Excise Groups and Series Groups

Use

In this IMG activity, you specify which excise group and series group you want to appear in these fields by default. You can make separate settings for different combinations of sales organization, distribution channel, division, and shipping point.

Path SPRO Logistics General Tax on goods movement India business transaction Outgoing excise invoice Maintain Default Excise Groups and Series Groups



Subcontracting Attributes

Use

The subcontracting attributes help determine conditions for a combination of an excise group, a transaction type, and a subtransaction type.

The conditions such as the number of excise items per subcontracting challan, if the nonexciseable materials have to be filtered or not when the subcontracting challan is created, the movement type groups for issues and receipts and the hierarchy of determining the excise base value are mentioned here

Path SPRO Logistics General Tax on goods movement India business transaction Subcontracting Subcontracting Attributes



Movement Type Group

Movement Type Groups will be used to club the movement types based on their nature (issues or receipts).

These Groups can be defined individually for each subtransaction type of every transaction type.

Path SPRO Logistics General Tax on goods movement India business transaction Subcontracting Movement type Group



Utilization Determination

Use

In this IMG activity, you specify which CENVAT accounts are to be debited by the Fortnight Utilization of CENVAT report: When the report calculates how much excise duty you must remit, it automatically proposes which CENVAT accounts the duty should be debited to. Here, you specify those defaults.

You can either:

Debit all the excise duty to one accountDebit the excise duty to more than one account, in which case you specify which percentage is to be debited to each account

Example

If you want 50% of basic excise duty (BED) to be debited to the RG 23A account and the remaining 50% to the RG 23C account, you would make the following settings:



Acct name BED perc.

RG 23A BED account 50

RG 23C BED account 50

Alternatively, to debit all of the BED to the RG 23A account, and then RG 23C account, if there is not enough in the RG 23A account, you would make the following settings:

Acct name BED perc. +

RG 23A BED account X

RG 23C BED account X

When you come to run the report, the system takes the RG 23A account because it is the first one you have entered. If this account does not cover the BED, the system takes the RG 23C account

Path SPRO Logistics General Tax on goods movement India business transaction Utilization Utilization Determination



Maintain Minimum Balances for Excise Accounts

Use

In this IMG activity, you can maintain minimum balances in your excise accounts. When the balance in these accounts during utilization falls below this level, the system automatically utilizes funds in the PLA account.

Activities

Maintain the minimum balance amount for the excise accounts. If you have more than one excise group, you can maintain different minimum balances.

Path SPRO Logistics General Tax on goods movement India business transaction Utilization



Maintain Minimum Balances for Excise Accounts

No Range to be maintained in CIN

T Code: SNRO



Raw Material PO Cycle

First of all maintain master data for Raw material

T Code: J1ID

Maintain chapter ID and save

After that maintain

After that maintain



Assessable value is used in subcontracting challan (57F4)

After that maintain

System will consider the material is excisable or not

Create a raw material PO

Now click on Taxes to get calculation of tax



V1 = EXCISE DUTY+CESS+SHEC+CST 2%

And save

After that validate the PO with ME29N

Now go to MIGO for Goods receipt

There is additional tab appears excise Invoice



Fill excise Invoice number in delivery note provided by the vendor.

Now click on excise invoice tab

CST is not deductable in nature. It adds to material cost.

In the line item click on excise item

Here you can change the excise of the material if required



After that post the Goods Receipt

Now display the material document number

After that click on FI document

System only post material cost + CST to inventory account.

Material Cost 7000 INR

CST 153.65 INR

Now to post excise invoice, go to T Code J1IEX

T Code: J1IEX



Here select Post and vendor Excise Invoice number because at the time of Goods receipts vendor invoice is already captured

Now click on duty values if you want to change the excise duty



Click on

After click on



Click on continue and excise invoice posted

Click on part 2 tab



Go to MIRO to post the vendor bill

Now the Invoice posting entries are as

And click on post



Reverse Excise Invoice

First Cancel GR

And post. After Posting Post the reverse excise invoice T Code J1IEX



Simulate

System shows the reversal entry



After that Post the excise Invoice

After posting cancel the Excise Invoice with J1IEX



Click on yes



After posting display the excise invoice,



Return to Vendor

1. Create a Return PO

Validate the PO and Go to MIGO for Return

Go to J1IS to create Excise Invoice



Give the Net Assessable Value and Excise percentage after that release for accounting

Summary of the Raw Material PO Cycle

In specify Excise Accounts per Excise Transaction as

1. GRPO CR Credit CLEAR CENVAT clearing account 2. GRPO DR Debit ONHOLD CENVAT on hold account 3. GRPO DR Debit RG23AT1 RG 23 AT1 Account 4. GRPO DR Debit RG23BED RG 23 BED account 5. GRPO DR Debit RG23ECS RG 23 ECS Account



Before MIRO Certain Account must be maintain in system

Go To T Code OB40

6. 1) A/P VAT RM Deductib JP5 7. 2) IN:A/P SECess setoff J16 8. 3) India Basic Excise JI1

Please check all of Entry, These must be

During GR

Material Stock Dr.

GR/IR clearing Cr.

During Excise Invoice Credit

Cenvat Account Dr.

Cenvat Clearing Cr.

During Invoice Verification

Cenvat Clearing Dr.

GR/IR Clearing Dr.

Vendor Payable Cr.

Subcontracting Cycle

Subcontracting material has two types



1. Multiple Inputs and Single Output

2. Single Input and multiple Outputs

Multiple Inputs and Single Output

Prerequisites for receiving the subcontracting material - 1. BOM should be defined properly. If it will maintained wrongly then always problem will

come for receiving the material and stock will not be match with actual quantity.

2. If you have maintained alternate BOM, first version will be maintained in material master and this version will be maintained in Info record then that BOM will explode in purchase order otherwise always explode first BOM in purchase order.

3. Purchase Order should be created correct with item category L.

Multiple Inputs and Single Output Cycle 1. Maintain Subcontracting material in J1ID

2. Maintain BOM of the material

T Code: CS01

Create Subcontracting PO with ME21N



Click on Explode BOM

Here you can check if qty is fixed or not.

Difference is that when checks the check box, qty is fixed then suppose if qty of FG is changed then also BOM qty remains the same.

Save the PO

After that validate the PO in ME29N

Now, Provide the Subcontracting material to the vendor

T Code MB1B



Click enters and provides the PO number



Now Create a Subcontracting challan J1IF01



The Excise Base amt is picked from assessable value maintained.



Check the Print Immediately if you want to print after saves.

Goods receipt is done with T Code MIGO

Go to Excise Tab, Select Subcontracting and give the challan number



And post

Check the FI document in material document posted



Reconcile Challan:-

It is very necessary step from Excise point of view that a Challan will be reconciled after every GR.

There are following two methods to reconcile the Challan: 1. If you have referred the Challan during the GR than you need to enter the MIGO-101 or

MIGO-105 document number and Reconcile in the T Code J1IFQ

If you have not referred the Challan during GR, then you have to give the reference of MIGO 101 and MIGO 105 document number as well as challan number which is to be reconciled in the

After GRN, Reconcile the subcontracting challan

T Code J1IFQ



Click on



System automatically picks the qty of the challan

And save

Complete Challan -

If subcontracting challan have fully reconciled then you have to complete the challan so that challan will not appear in pending list.

T code J1IF13

Here give challan no and year and press enter.



Once you enter the above screen will appear and complete challan radio button automatically will tick.

Press save button.

Now you can see the status of this challan in J1IF12 under tab.



Now you can run the report J1IFR

Reversal Challan

If you have send the material to subcontractor and material has not return back within 180 days then you have to reverse the challan in T code (J1IF13) otherwise challan will not reconcile after 180 days.

You can check the list of challan which you have to reverse in coming days or will complete 180 days.

T Code J1IFR

Enter all inputs according your requirement and tick reversal due and give return date and click on

execute .



Then below list will appear.

In T code J1IF13 give challan no and year for reversal.

Press enter.



Below screen will appear.

Check in tab modvat debit amount which will be reversed in excise.

If it is correct then press save button.



Below message will appear in screen.


In J1IFR report you can also see reversed qty in qty due for reversal colum as per below screen shot.



Subcontracting of Project Stock

Material procured for project purpose, sending this project stock to a vendor for specific manufacturing process/assembly and receiving the value added finished material back to project

Subcontracting of Project Stock (Special Stock) is different from normal subcontracting process; it is not possible to transfer goods using movement type 541+Q

Difficulties involved in Subcontracting of Project Stock

In standard SAP, it is not possible to use 541+Q (Q refers to Project Stock) to transfer Project stock to subcontracting vendor.

So, it is recommended to create new storage location to each subcontracting vendor & use 311+Q movement type, based on this it is possible to monitor stock at subcontracting vendor.

Name/description of storage location should be same as subcontracting vendor for easy identification.

In standard SAP, it allows only 541 material documents to create subcontracting challan but here it is required to create challan with respect to 311+ Q material documents.

It is possible after doing required configuration (add the required movement type 311+Q in configuration)

Steps to fallow in SAP & Transaction codes

Create materials (Part-A, Part-B & Assembly) MM01

Create BOM (Optional) CS01

Maintain CIN Master data J1ID

Create PR with A/c assignment Q & Item cat "L" ME51N

Create Info record with info category subcontracting (Optional) - ME11

Create PO with reference to PR (A/c assignment Q & Item cat "L") ME21N

Release PO (if release strategy exists) ME28

Define new storage location for Subcontracting Vendor SPRO

Maintain Movement type group for Subcontracting - SPRO

Transfer posting components to SC vendor with 311+Q MB1B

Check the stock with SC vendor using Tcode MMBE (not with ME2O) - MMBE

Create Subcontracting challan with ref to material document J1IF01

Print out of subcontracting challan J1IF11

Receive final product against subcontracting PO with 101 movement type MIGO_GR

Reconciliation of challan J1IFQ

Complete the challan J1IF13



Check status of challan J1IF12







Save the PO


Define new storage location for Subcontracting Vendor

Path: IMG Enterprise Structure Definition Materials Management Maintain Storage location

Maintain Movement type group for Subcontracting

Path: IMG Logistics General Tax on Goods Movements India Business Transactions Subcontracting Maintain Movement Type Groups

Maintain movement type 311+Q against Movement type Group (ex: 0002)

Path: IMG Logistics General Tax on Goods Movements India Business Transactions Subcontracting Subcontracting Attributes

Maintain Movement type Group (ex: 0002) in column Movement Type group for Issue for the required Excise group combination.

Transfer posting components to SC vendor with 311+Q

T Code MB1B

Click enters and provides the details



Check the stock with SC vendor using Tcode MMBE (not with ME2O)





And post




Reconcile Challan:-








T Code J1IFQ



Click on

System automatically picks the qty of the challan

And save

Complete Challan -


T code J1IF13



Here give challan no and year and press enter.

Once you enter the above screen will appear and complete challan radio button automatically will tick.

Press save button.




Now you can run the report J1IFR



Subcontracting Cycle By Product

Subcontracting material has two types 1. Multiple Inputs and Single Output 2. Single Input and multiple Outputs

Multiple Inputs and Multiple Output

Prerequisites for receiving the subcontracting material - 1. BOM should be defined properly. If it will maintained wrongly then always problem will

come for receiving the material and stock will not be match with actual quantity. 2. If you have maintained alternate BOM, first version will be maintained in material master

and this version will be maintained in Info record then that BOM will explode in purchase order otherwise always explode first BOM in purchase order.

3. Purchase Order should be created correct with item category L. 4. The Byproducts should be maintained as negative qty in BOM.

Multiple Inputs and Multiple Output Cycle 3. Maintain Subcontracting material in J1ID

4. Maintain BOM of the material

T Code: CS01







Save the PO


Now, Provide the Subcontracting material to the vendor



T Code MB1B

Click enters and provides the PO number, system will only put Raw material not byproduct.







Here byproduct is get with movement type 545




And post




Here scrap is by Product which is non-valuated in nature. So there is no account entry only qty updated.

Reconcile Challan:-






T Code J1IFQ



Reconcile the challan as steps already provided in earlier cycle and save

Complete Challan -


T code J1IF13

Complete challan.

After this you will transfer the material with 542 movement type and give the reference of challan then you will receive the co product and scrap in own stock.

You can check the by product at vendor location

In MB1B give Movement type 542, plant and storage location.



Go to Go to Menu details item details



Then one window will appear like this and press enter.

Give challan No in goods recipient field if more than one line item is there click on for enter challan no for another line items if available.

Again run the Report

Asset Cycle



1. Non Valuated material created as Asset. 2. Go to J1ID to maintain it as assets

3. Create PO with Asset

Validate the PO and go to GRN

Now go to T Code MIGO for goods receipt (asset receipt)



Display the material document.

And if you click on

There is no accounting document as asset is non valuated in nature.

Now go to J1iex to post excise invoice



Click on

Here system put 50% on Hold account and 50% to Excise Accounts.

Click on the Post



Check the Balance Credit Capital Asset T Code J2I8



To avail balance credit on next year or same year depends upon the company scenario

Click on

Balance has been transferred.

Again if you run the report J2I8

There will be no item pending or on hold account.



Import Cycle

1. Create Import PO ME21N

Now for import PO, GR base IV should be unchecked

Click on

Provide the % of Custom duty, Cess of Custom Duty, CVD etc.

Save PO and validate the PO.

2. Go to MIRO to capture Custom duty



Select the planned delivery costs and provide the values of Qty and value

Now after capturing custom duty (planned delivery cost), Go to MIGO



System asks for commercial invoice number

Click on



After that post the excise invoice with J1iEX



Click on enter



Registers

1. Input Cenvat registers for monthly return

T Code: J2I9

Here there are two options for monthly return file with excise department

The date rate must be first date and last date of the month. Unless system will give the error

Suppose report run for inputs (Raw material)



Now select the radio button capital Goods

If you want to check the simple report then selects the radio button abstract

System will give the brief summery for CENVAT

The printout of the monthly return is taken as



2. Update the RG23A/C issue and RG1 Register

T Code J1I5

Now for classification there are certain options



The following Classification codes need to be used while updating the Excise Registers:

Register Type Goods issues Goods receipts

RG 23A IIM ROP

IPD

IWD

RG23C IIM ROP

IPD

IWD

RG1 IDH RMA

IDE ROP

IWE

IWT

IWO

Now first of all select ROP



These this RG23A part 1 is updated with raw material receipt

Now select all

And click on

After that select IIM issue the material



After that select RMA

Select all and click on

3. Extract Excise Register



Click yes

After that system will extract the register

4. Print Utility Program



After that



Monthly utilization

J2IUN



Excise Opening Balance Uploading

This Business Process Procedure is also included in Building Block J94. But due to the change of tax settings, we should use this BPP instead of the original one in J94.

RG23A and RG23C Part I Registers updation

Use Before going live of any project normally you will be uploading initial stocks by using 561 movement in SAP system. In Indian business scenario if the said material is subject to excise duty then we need to update Part 1 register with the stock.

Prerequisites Initial stocks must have been uploaded into system by 561movement and for such materials all CIN details (J1ID) like Chapter ID, Material and Chapter ID combination and CENVAT Determination should have been maintained.

Procedure 1. Access the transaction choosing one of the following navigation options:

SAP R/3 menu Country India User Menu Indirect Taxes Registers Excise Tax Update RG23A/C Issues and RG1

Transaction code J1I5

2. On the Update of Registers RG1 and RG23(Part1) screen, make the following entries:

Field name Description R/O/C User action and values

Comment

Company Code

Company Code R SKHM

Plant Plant for which RG1 Register is being maintained

R SK01

Excise Group Excise Group for which RG1 register is being maintained

R S1

Material Document Number

Material document number O

561 Movement Material document number

Document Year

Material document year O Material document year

Posting Date Date of Material document Posted

R Enter the Material Document Posting Date



Movement Type

Movement Type used for posting the materials

O 561

Storage Location

Storage location used for posting the material movements

O

Material Material number to update the RG1 Register

O

Document Date

Document date of the material document

O

Batch Batch number of the materials

O

Stock Type Stock Type declared O

Rule Excise Classification Rule O

Classification Pre-defined Classifications R ROP Receipts ROP-Receipt from outside under any other provision

RG23/ RG1 RG23 / RG1 updation date R Select the appropriate radio button to update the Register. Please select the document entry date radio button

Date to be considered by the system for updation of Register Document Entry date Document posting date System date

Registers Register to update R Select the RG23A or RG23C radio buttons

Choose any one of RG23A Part1 RG23C Pat1 For this transaction

Please choose enter and ignore any messages. 3. System will display the Update of Registers RG1 and RG23 (Part1) screen:

Displays all the line items to meet the selection criteria to update the Register.

4. Select the line items which needs to be updated to Register by selecting the check box at the beginning of the each line item

Chapter 13 Excise Opening Balance Uploading

5. Simulate the selection by using the Simulate function.

6. System will display the selection Green or Red Traffic lights. The line items which can be updated will be displayed with Green Traffic Lights and the line items which can not be updated will be displayed with Red Traffic Lights.



7. After selecting the right documents select the line item and choose the Register Entry button to update the Register.

Please perform step 7 only once, because if you perform two or three times, the system will generate two or three times in register which may not required.

8. To see the changes you need to extract the respective register by transaction code J2I5 and print utility program by transaction code J2I6 as per the BPP mentioned above.

RG23A Part II and PLA Registers updation

Use Before going live of any project normally you will be uploading initial balances by using FI transactions in SAP system. By the time client go-live there might be some opening balance in RG23A Part II and PLA registers.

This transaction involves Direct Table Entries so, please be careful when you are doing this transaction. You have to do this activity before Extracting (J2I5) transaction i.e. there should not be any entries in J_2IACCBAL table. If they are exists you can delete them and make the following transaction and then Extract (J2I5) again.

Please do note that this is purely manual transaction system does not have any control or validations in this i.e. system will cross check with any other entry.

Prerequisites All CIN customization must have completed.


SAP R/3 menu Tools ABAP Workbench Development ABAP Dictionary

Transaction code SE11

2. On the ABAP Directory: Initial Screen, make the following entries.

3. Choose J_2IACCBAL against Database Table filed and choose Display (F7) icon to enter into table.

4. On Dictionary: Display Table screen, choose Utilities Table contents Create Entries from Menu bar and make the following entries:

Field name Description R/O/C User action and values

Comment

MANDT Client O Leave it blank Grayed out by system, sys will give client number.

EXGRP Excise Group O 10 Choose appropriate excise group

REGISTER Data element for Register n

O RG23ABED for RG23A BED register

You can choose the appropriate register listed at the bottom.

DATUM Date O



end date> 30.04.2010

going live from 01.01.2010, then you must enter the last day of previous month i.e. 31.12. 2009. When you extract register the date range should be from 01.01.2010 to 31.01.2010.

WERKS Plant O Leave it blank

OP BAL Basic duty (OP BAL) O Leave it blank

CL BAL Basic duty (CL BAL) O 9999.99 for example INR

Enter the closing balance as on 31.12.2009

EXAMT Basic duty (EXAMT) O Leave it blank

EXIND Extract Indicator O Leave it blank

USNAM User name O Enter you user ID

CPUDT Entry Date O Entry date 31.12.2009

Date on which you are making entry

CPUTM Entry time O Enter time

The following are Data elements for Registers:

RG23ABED, RG23ASED, RG23AAED, RG23CBED, RG23CSED, RG23CAED, PLABED, PLASED, PLAAED, PLACESS.

5. After making table entries save the entries by choosing Save icon or Ctrl + S.

Please do remember that this is only a direct table entry of opening balance, system does not check the actual FI entries. You need to make an appropriate FI entry to suitable to above transaction. An example is give below for your reference:

You can use F-02 transaction code to pass the following FI entry:


RG23A Part II Account DR

To Initial balances clearing a/c

Or

PLA BED Account DR

To Initial balances clearing a/c

You can choose any appropriate accounting entry which is suitable to client.



6. After making table entry if you want to see you can extract register by using J2I5 transaction code (as explained 1.2.1 and 1.2.2). But you need to remember the extraction date should be 01.01.2010 to 31.01.2009 as you have given closing balance as on 31.12.2010.

7. Extraction is possible only if there are some transactions (actual incoming excise invoices). That is to say you can extract register only after your first actual CIN transaction in system (other than opening balance).

The same process can be followed for PLA register also.

Result

Table entry for RG23A Part II is made.

RG23C Part II

Use To upload the opening balance in RG23C Part II.

This transaction involves Direct Table Entries so, please be careful when you are doing this transaction. You have to do this activity before Extracting (J2I5) transaction i.e. there should not be any entries in J_2IACCBAL table, except the balances of RG23A Part II and PLA balance as mentioned above. If they are exists you can delete them and make the following transaction and then Extract (J2I5) again.

Please do note that this is purely manual transaction system does not have any control or validations in this i.e. system will cross check with any other entry.

The RG23C is for CENVAT credit on capital goods. Hence in this step you upload only the balance in the RG23C Part II. The RG23C balance on hold will not be uploaded in the table. The balance


will remain in the FI books as a balance in a GL account. When this credit for the On hold balance is due, it will be transferred to RG23C Part II using Excise JV (transaction code J1IH).

Prerequisites All CIN customization must have completed.


SAP R/3 menu Tools ABAP Workbench Development ABAP Dictionary

Transaction code SE11

2. On the ABAP Directory: Initial Screen, make the following entries.

3. Choose J_2IACCBAL against Database Table filed and choose Display (F7) icon to enter into table.



4. On Dictionary: Display Table screen, ch