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    SAP MM CIN settings SAP MM CIN settings Document Transcript

    • SAP MM CIN SettingsApplies to:SAP ECC 6.0For more information, visit the Enterprise Resource Planning homepage.Summary:This document will help people to understand MM excise configuration i.e. COUNTRY INDIA VERSION.Generally people think CIN is a very complicated thing. This document will simplify CIN settings to them,especially those who are coming new into this area.Author: Diptasya JashCompany: Intelligroup Asia PVT. LTD.Created on: 31 October 2008Author BioDIPTASYA JASH is now a employee of INTELLI GROUP ASIA PVT. LTD. He has near about 2.6yrsexperience. Worked in various fields like STEEL, AGGRICULTURE, PETROCHEMICAL.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 1
    • SAP MM CIN SettingsTable of ContentsCountry India Version .........................................................................................................................................5 Excise Duty: ....................................................................................................................................................5 Types of Excise Duty ......................................................................................................................................5 Basic Excise Duty ........................................................................................................................................................5 Special Excise Duty .....................................................................................................................................................5 Additional Excise Duty .................................................................................................................................................51. BASIC SETTINGS ..........................................................................................................................................6 1.1.1 EXCISE REGISTRATIONS.................................................................................................................................9 1.1.2 ECC NO ..............................................................................................................................................................9 1.1.3 EXCISE REG. NO...............................................................................................................................................9 1.1.4 EXCISE RANGE ...............................................................................................................................................10 1.1.5 EXCISE DIVISION ............................................................................................................................................11 1.1.6 EXCISE COMMISSIONERATE ........................................................................................................................12 1.1.7 AED (ADDITIONAL EXCISE DUTY) .................................................................................................................12 1.1.8 SED (SPECIAL EXCISE DUTY) .......................................................................................................................12 1.1.9 CESS ................................................................................................................................................................12 1.1.10 EI ITEMS (EXCISE INVOICE ITEMS).............................................................................................................13 1.1.11 PARTIAL CENVAT CREDIT (PARTIAL CR)...................................................................................................14 1.2 MAINTAIN COMPANY CODE SETTINGS .............................................................................................15 1.2.1 DOCUMENT TYPE FOR CENVAT POSTING..................................................................................................16 1.2.2 OVERWRITE DEBIT ACCOUNTS....................................................................................................................16 1.2.3 SUBCONTRACTING PERIOD..........................................................................................................................16 1.2.4 FIRST MONTH .................................................................................................................................................17 1.2.5 EXCISE INVOICE SELECTION PROCEDURE ................................................................................................18 1.2.6 NUMBER OF EXCISE INVOICES TO BE SELECTED.....................................................................................18 1.2.7 DAYS TO BE CONSIDERED FOR EXCISE INVOICE SELECTION ................................................................19 1.2.8 EXCISE ROUND OFF.......................................................................................................................................20 1.2.9 SD ROUNDING IND. ........................................................................................................................................20 1.2.10 IMMEDIATE CREDIT ON CAPITAL GOODS .................................................................................................21 1.2.11 CVD ACCOUNT..............................................................................................................................................21 1.2.12 EXCHANGE RATE .........................................................................................................................................22 1.2.13 EXPORT EXCHANGE ....................................................................................................................................23 1.3. MAINTAIN PLANT SETTINGS ..............................................................................................................24 1.3.1 DEPOT..............................................................................................................................................................25 1.3.2 EXCISE REGISTRATION .................................................................................................................................25 1.3.3 GOODS RECEIPT PER EXCISE INVOICE ......................................................................................................26 1.4 MAINTAIN EXCISE GROUPS ................................................................................................................26 1.4.1 EXCISE GROUPS ............................................................................................................................................28 1.4.2 COPY TO GR ...................................................................................................................................................28 1.4.3 CONSUMPTION ...............................................................................................................................................28 1.4.4 EXCISE INVOICE CAPTURE ...........................................................................................................................29 1.4.4 RG 23D SELECTION IN MIGO.........................................................................................................................29 1.4.5 UPDATE RG1 AT MIGO ...................................................................................................................................29 1.4.6 DUTY DIFFERENCE ........................................................................................................................................30 1.5 MAINTAIN SERIES GROUP ..................................................................................................................31 1.5.1 SERIES GROUP...............................................................................................................................................33 1.5.2 EXPORT PERIOD ............................................................................................................................................34SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 2
    • SAP MM CIN Settings 1.5.3 REBATE............................................................................................................................................................34 1.5.4 ADDRESS.........................................................................................................................................................35 1.5.5 ARE-1 ...............................................................................................................................................................35 1.6 MAINTAIN EXCISE DUTY INDICATORS...............................................................................................36 1.7 MAINTAIN SUBTRANSACTION TYPES................................................................................................38 1.7.1 MAINTAIN SUBTRANSACTION TYPES ..........................................................................................................39 1.8 DETERMINATION OF EXCISE DUTY ...................................................................................................40 1.8.1 SELECT TAX CALCULATION PROCEDURE ..................................................................................................41 1.8.1.1 SELECT TAX CALCULATION PROCEDURE ...............................................................................................41 1.8.1.2 CONDITION BASED EXCISE DETERMINATION .........................................................................................42 1.8.1.3 FORMULA BASED EXCISE DETERMINATION............................................................................................42 1.9 MAINTAIN EXCISE DEFAULTS.............................................................................................................43 1.9.1 MAINTAIN EXCISE DEFAULTS .......................................................................................................................43 1.9.2 CVD COND.......................................................................................................................................................43 1.10. CONDITION BASED EXCISE DETERMINATION ..............................................................................44 1.10.1 DEFINE TAX CODE FOR PURCHASING DOCUMENT.................................................................................44 1.10.2 ASSIGN TAX CODE TO COMPANY CODES ................................................................................................48 1.10.3 CLASSIFY CONDITION TYPES.....................................................................................................................49 1.10.3.1 CLASSIFY CONDITION TYPES ..................................................................................................................502. MASTER DATA ............................................................................................................................................52 2.1 MAINTAIN CHAPTER IDS......................................................................................................................53 2.1.1 MAINTAIN CHAPTER IDS................................................................................................................................54 2.1.2 ASSIGN USERS TO MATERIAL MASTER SCREEN SEQUENCE FOR EXCISE DUTY ................................56 2.1.2.1 SCREEN REFERENCE DEPENDING ON THE TRANSACTION..................................................................57 2.1.2.2 SCREEN REFERENCE DEPENDING ON THE USER .................................................................................57 2.1.2.3 SCREEN REFERENCE DEPENDING ON THE MATERIAL TYPE ...............................................................58 2.1.2.4 SCREEN REFERENCE DEPENDING ON THE INDUSTRY SECTOR .........................................................593. ACCOUNT DETERMINATION .....................................................................................................................64 3.1.1 TRANSACTION KEY ........................................................................................................................................67 3.1.2 POSTING KEY..................................................................................................................................................69 3.1.3 INDICATOR ......................................................................................................................................................70 3.1.4 TAX CODE........................................................................................................................................................71 3.2 SPECIFY EXCISE ACCOUNTS PER EXCISE TRANSACTION............................................................72 3.2.1 EXCISE TRANSACTION TYPE........................................................................................................................74 3.3 SPECIFY G/L ACCOUNTS PER EXCISE TRANSACTION ...................................................................78 3.3.1 OFFSET............................................................................................................................................................80 3.3.2 MODVAT CLEARING .......................................................................................................................................81 3.3.3 GL ACCOUNT FOR PLA BED..........................................................................................................................81 3.3.4 CENVAT ON HOLD ..........................................................................................................................................82 3.3.5 CENVAT SUSPENSE .......................................................................................................................................82 3.3.6 PLA ON HOLD..................................................................................................................................................82 3.3.7 CENVAT REVERSAL .......................................................................................................................................834. BUSINESS TRANSACTIONS ......................................................................................................................84 4.1 INCOMING EXCISE INVOICES .............................................................................................................85 4.1.1 SELECT FIELDS ..............................................................................................................................................86 4.1.2. DEFINE PROCESSING MODE PER TRANSACTION ....................................................................................89 4.1.3 DEFINE REFERENCE DOCUMENT PER TRANSACTION .............................................................................90 4.1.5 SPECIFY WHICH MOVEMENT TYPES INVOLVES EXCISE INVOICES ........................................................94 4.2 SUBCONTRACTING ..............................................................................................................................96SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 3
    • SAP MM CIN Settings 4.2.1 SUBCONTRACTING ATTRIBUTES .................................................................................................................97 4.2.1.1 SUBCONTRACTING ATTRIBUTES ..............................................................................................................98 4.2.1.1.1 SUBCONTRACTING CHALLAN .................................................................................................................98 4.2.1.2 EXCISE PERCENTAGE RATE......................................................................................................................99 4.2.1.3 MOVEMENT TYPE GROUP FOR ISSUE......................................................................................................99 4.2.1.4 MOVEMENT TYPE GROUP FOR RECEIPT.................................................................................................99 4.2.1.5 EXCISE INVOICE ITEMS ..............................................................................................................................99 4.2.1.6 BASE VALUE BASED ON ASSESSABLE VALUE / EXCISE INVOICE ........................................................99 4.2.2 MAINTAIN MOVEMENT TYPE GROUPS ......................................................................................................100 4.2.2.1 MOVEMENT TYPE GROUP........................................................................................................................102 4.3 EXCISE REGISTER..............................................................................................................................102 4.3.1 SPECIFY SAPSCRIPT FORMS .....................................................................................................................1045. TOOLS........................................................................................................................................................106 5.1 LONG TEXTS .......................................................................................................................................107 5.2 NUMBER RANGES ..............................................................................................................................109 5.3 MESSAGE CONTROL..........................................................................................................................110Related Content..............................................................................................................................................111Disclaimer and Liability Notice........................................................................................................................112SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 4
    • SAP MM CIN SettingsCountry India VersionSAP- COUNTRY INDIA VERSION (CIN) is designed for use by business with operations in India. Itcomprises function designed specifically for India, a localization implementation guide (IMG), and a countrytemplate 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 taxExcise 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 goodsetc.In India, excise duty is a tax on the manufacture of goods that is levied when goods leave the place ofmanufacture. Manufacturers can set off the duty paid on input materials against their output duty, aprocedure known as central value-added tax (CENVAT).Types of Excise DutyBasic Excise DutyThis is the duty charged under section 3 of the Central Excises and Salt Act, 1944 on all excisable goodsother than salt which are produced or manufactured in India at the rates set forth in the schedule to theCentral Excise tariff Act, 1985.Special Excise DutyAs per the Section 37 of the Finance Act, 1978 Special excise Duty was attracted on all excisable goods onwhich there is a levy of Basic excise Duty under the Central Excises and Salt Act, 1944.Since then each yearthe relevant provisions of the Finance Act specifies that the Special Excise Duty shall be or shall not belevied and collected during the relevant financial year.Additional Excise DutySection 3 of the Additional duties of Excise (goods of special importance) Act, 1957 authorises the levy andcollection in respect of the goods described in the Schedule to this Act. This is levied in lieu of sales Tax andshared between Central and State Governments. These are levied under different enactments like medicinaland toilet preparations, sugar etc. and other industries development etc.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 5
    • SAP MM CIN Settings1. BASIC SETTINGSPress “f5” or click on “sap reference img”You will see the screen given belowSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 6
    • SAP MM CIN SettingsThen follow the respective pathsIMG activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIATransaction Code SPRODescription of IMG activity Basic settingsGo to basic settingsThen follow the path described belowIMG activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > MAINTAIN EXCISE REGISTRATIONSTransaction code SPRODescription of IMG activity Maintain excise registrationsSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 7
    • SAP MM CIN SettingsThen execute itSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 8
    • SAP MM CIN Settings1.1.1 EXCISE REGISTRATIONSAn 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 withseven factories requires seven registrations.1.1.2 ECC NOA Tax number assigned, in India, by the department of revenue to legal and natural persons liable to exciseduty.The taxpayer is required to obtain a separate ECC number for each registered premises.1.1.3 EXCISE REG. NOThe number used to identify an excise registration.When a business registers with the local excise authorities, the authorities issue it a separate number foreach registration.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 9
    • SAP MM CIN Settings1.1.4 EXCISE RANGEA subdivision, in India, of an excise division.The excise ranges are responsible for issuing ECC numbers.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 10
    • SAP MM CIN Settings1.1.5 EXCISE DIVISIONA subdivision of an excise commissionerate, in India.Excise divisions are split up into excise ranges.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 11
    • SAP MM CIN Settings1.1.6 EXCISE COMMISSIONERATEAn administrative body, in India, that assesses and collects excise duty. It reports to the Central Board ofExcise and Customs.There are around 90 commissionrates in India.1.1.7 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.1.1.8 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.1.1.9 CESSIn India, a tax on the manufacture of certain products.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 12
    • SAP MM CIN Settings1.1.10 EI ITEMS (EXCISE INVOICE ITEMS)Shows the maximum number of the line items that we are allowed to include in a single outgoing exciseinvoice.This information affects the transactions for creating outgoing excise invoices for factory sales and for othermovements.This information is used to split the transfer postings items into multiple subcontracting challans.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 13
    • SAP MM CIN Settings1.1.11 PARTIAL CENVAT CREDIT (PARTIAL CR)Specifies that the excise registration is allowed to credit only a portion of its input excise duty to its CENVATaccount.When we post a goods receipt, the system splits the input excise duty on the material into its deductible andnondeductible amounts. It posts the deductible duty to the appropriate CENVAT account, and adds thenondeductible duty to the material value.This information is also shown when we post the incoming excise invoice.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 14
    • SAP MM CIN Settings1.2 MAINTAIN COMPANY CODE SETTINGSIMG activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > MAINTAIN COMPANY CODE SETTINGST- CODE SPRODescription of IMG activity MAINTAIN COMPANY CODE SETTINGSSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 15
    • SAP MM CIN SettingsThen execute it1.2.1 DOCUMENT TYPE FOR CENVAT POSTINGA 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.1.2.2 OVERWRITE DEBIT ACCOUNTSAllows users, when entering journal vouchers, to overwrite the proposed debit accounts depending on thenature of transaction.1.2.3 SUBCONTRACTING PERIODThe maximum number of days that the materials can be with subcontractor without us having to reverse theexcise on the CENVAT account.This information is used when we create a subcontracting challan to determine on exactly which date thematerials have to be returned by.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 16
    • SAP MM CIN Settings1.2.4 FIRST MONTHSpecifies which calendar month marks the beginning of the excise year.If the excise authorities change the start month, change the month here.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 17
    • SAP MM CIN Settings1.2.5 EXCISE INVOICE SELECTION PROCEDURESpecifies which procedure we use to select excise invoices, either first in first out or last in first out.1.2.6 NUMBER OF EXCISE INVOICES TO BE SELECTEDIndicates the number of excise invoices that needs to be selected in the excise invoice selection.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 18
    • SAP MM CIN Settings1.2.7 DAYS TO BE CONSIDERED FOR EXCISE INVOICE SELECTIONNumber of days from document date for excise invoice selection.Example:If the value of this field is 20 and today is 28.03.08. The excise invoice selection will show the relatedinvoices only for the period 08.03.08 to 28.03.08.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 19
    • SAP MM CIN Settings1.2.8 EXCISE ROUND OFFRounds 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 rupeethen no rounding is done.It does not round off the CENVAT credit to be taken.1.2.9 SD ROUNDING IND.Rounds off the excise duty be paid when we create an outgoing excise invoice.The system rounds off the excise duty for each line item separately.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 20
    • SAP MM CIN Settings1.2.10 IMMEDIATE CREDIT ON CAPITAL GOODSInstructs the system, when we verify a goods receipt for capital goods, to immediately post half of the inputexcise duty to the appropriate CENVAT accounts.The rest is posted to the CENVAT on hold account, for use in the following year.1.2.11 CVD ACCOUNTA form of excise duty imposed on imports that are subsidized by the country in which they weremanufactured.When we post an incoming excise invoice for goods that we have purchased abroad, the system credits thecountervailing duty to this account.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 21
    • SAP MM CIN Settings1.2.12 EXCHANGE RATEKey representing a type of exchange rate in the system.Exchange rate type is used to store different exchange rates.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 22
    • SAP MM CIN Settings1.2.13 EXPORT EXCHANGESpecifies which exchange rate type the system uses to translate excise duty when we create an outgoingexcise invoice for export sales.Exchange rate type is a key representing a type of exchange rate in the SAP system.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 23
    • SAP MM CIN Settings1.3. MAINTAIN PLANT SETTINGSIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > MAINTAIN PLANT SETTINGST-CODE SPRODescription of IMG activity MAINTAIN PLANT SETTINGSSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 24
    • SAP MM CIN Settings1.3.1 DEPOTIndicates that the plant is a depot.Depots are required to prepare register RG 23D, and follow different procedures for goods receipt andinvoice generation.1.3.2 EXCISE REGISTRATIONSpecify which excise registration this plant belongs to.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 25
    • SAP MM CIN Settings1.3.3 GOODS RECEIPT PER EXCISE INVOICESpecifies whether we are allowed to receive more than one delivery per excise invoice, and if so, whether wecan take the CENVAT credit immediately i.e. multiple credits or have to wait until the delivery has been madein full i.e. single credit.1.4 MAINTAIN EXCISE GROUPSIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > MAINTAIN EXCISE GROUPST-CODE SPRODescription of IMG activity MAINTAIN EXCISE GROUPSSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 26
    • SAP MM CIN SettingsSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 27
    • SAP MM CIN Settings1.4.1 EXCISE GROUPSA 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 internalorganizational unit. Each excise group keeps records of all transaction that have to be reported to the exciseauthorities.When the time comes to present these records to the authorities, the excise registration compiles theinformation from all of its excise groups.1.4.2 COPY TO GRInstructs the system, when we post a goods receipt using an incoming excise invoice as a referencedocument, to copy the excise invoice quantity to the goods receipt.1.4.3 CONSUMPTIONAutomatically creates two entries in part I register RG 23A or RG 23C immediately we post a goods receiptfor 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 aconsumption 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 systemautomatically creates two part I entries from the goods receipt document.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 28
    • SAP MM CIN Settings1.4.4 EXCISE INVOICE CAPTUREEnable us to capture incoming excise invoices when we enter goods receipt in the standard goodsmovement 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 thegoods movement, the system automatically saves the excise invoice, to be posted later using the incomingexcise invoices transaction.1.4.4 RG 23D SELECTION IN MIGOEnable us to create outgoing excise invoices in manufacturing plants using MIGO when they enter a goodsissue 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.1.4.5 UPDATE RG1 AT MIGOCreates an entry in register RG 1 immediately we create an outgoing excise invoice in the standard goodsmovement 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.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 29
    • SAP MM CIN Settings1.4.6 DUTY DIFFERENCEEnable us to post incoming excise invoices in the MIGO, even if any of the excise duty information havebeen changed in the excise invoice tabs.Otherwise the transaction will only allow capturing the excise invoice.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 30
    • SAP MM CIN Settings1.5 MAINTAIN SERIES GROUPIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > MAINTAIN SERIES GROUPST-CODE SPRODescription of IMG activity MAINTAIN SERIES GROUPSSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 31
    • SAP MM CIN SettingsSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 32
    • SAP MM CIN Settings1.5.1 SERIES GROUPA system object that excise registration use, in India, to organize the various types of excise documents intogroups.We group excise documents to reflect the way that the excise documents are organized in our exciseregistrations.The system numbers each group separately, using a separate number range interval for each.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 33
    • SAP MM CIN Settings1.5.2 EXPORT PERIODThe 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 themfrom our premises.If we exceed the export period, we forego the exemption from basic excise duty and we must pay theexcise duty to the excise authorities.If we try to change an ARE-1 after the end of the export period, the system issues a warningmessage. 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-1’S export period.Otherwise in the case of exports under bond we must pay the excise duty plus interest. In the case ofexports under claim for rebate, we forego the excise duty already paid. We then close the ARE-1 as normal.1.5.3 REBATEUnder India’s exports under rebate scheme, the maximum length of time that we are allowed to reclaim anyexcise 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.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 34
    • SAP MM CIN Settings1.5.4 ADDRESSIf we use the exports under excise regulations solution, enter a default customs address for this series group.Otherwise leave the field blank.When a user creates an ARE-1 in this series group in the ARE DOCUMENTS transaction, the systemautomatically proposes this address for the customs department. The address is shown on print out of ARE-1s.We define addresses in customizing for Logistic-General, by choosing Tax on Goods Movements > India >Basic Settings > Maintain postal addresses.1.5.5 ARE-1A form, in India, that companies has to fill out when they remove excisable goods from there manufacturingplants for export.The form exempts them from paying excise duty when they remove the goods from their premises.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 35
    • SAP MM CIN Settings1.6 MAINTAIN EXCISE DUTY INDICATORSIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > MAINTAIN EXCISE DUTY INDICATORST-CODE SPRODescription of IMG activity MAINTAIN EXCISE DUTY INDICATORSSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 36
    • SAP MM CIN SettingsThen execute itSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 37
    • SAP MM CIN Settings1.7 MAINTAIN SUBTRANSACTION TYPESIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > MAINTAIN SUBTRANSACTION TYPEST-CODE SPRODescription of IMG activity MAINTAIN SUBTRANSACTION TYPESSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 38
    • SAP MM CIN Settings1.7.1 MAINTAIN SUBTRANSACTION TYPESBy default, the system records excise duties on the accounts that we have specified in the IMG activityspecify excise accounts per excise transaction.If we want to be able to record some excise duties on other accounts:Create a subtransaction type in this IMG activity.In the IMG activity specify Excise accounts per Excise Transaction, create a new entry with thissubtransaction type and enter the accounts that we want to post to.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 39
    • SAP MM CIN Settings1.8 DETERMINATION OF EXCISE DUTYIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > DETERMINATION OF EXCISE DUTYT-CODE SPRODescription of IMG activity DETERMINATION OF EXCISE DUTYSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 40
    • SAP MM CIN Settings1.8.1 SELECT TAX CALCULATION PROCEDUREIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > DETERMINATION OF EXCISE DUTY > SELECT TAX CALCULATION PROCEDURET-CODE SPRODescription of IMG activity SELECT TAX CALCULATION PROCEDURE1.8.1.1 SELECT TAX CALCULATION PROCEDUREHere we specify which tax procedure we want to use for determining excise duties and sales taxes on inputmaterials in India.There are two types:Condition based excise determinationFormula based excise determinationThis tax procedure also supports condition-based excise determination, so that we can work with bothconcurrently.Once we have started using a tax procedure, we cannot switch to another one, otherwise we will not be ableto display old documents.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 41
    • SAP MM CIN Settings1.8.1.2 CONDITION BASED EXCISE DETERMINATIONA 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 andmaterial.When we create a purchasing document, the system calls the tax procedure assigned to India. The taxprocedure 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 pricingprocedure.1.8.1.3 FORMULA BASED EXCISE DETERMINATIONA 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 theExcise Rate Maintenance transaction, J1ID.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 42
    • SAP MM CIN Settings1.9 MAINTAIN EXCISE DEFAULTSIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > DETERMINATION OF EXCISE DUTY > MAINTAIN EXCISE DEFAULTST-CODE SPRODescription of IMG activity MAINTAIN EXCISE DEFAULTS1.9.1 MAINTAIN EXCISE DEFAULTSHere we define which tax procedure and pricing condition types are used in calculating excise taxes usingformula-based excise determination.If we use condition-based excise determination, we have to only fill the CVD cond. field.1.9.2 CVD COND.Specifies the condition type used for countervailing duty on imports.A form of excise duty imposed on imports that are subsidized by country in which they were manufactured.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 43
    • SAP MM CIN Settings1.10. CONDITION BASED EXCISE DETERMINATIONIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > DETERMINATION OF EXCISE DUTY > CONDITION BASED EXCISE DETERMINATIONT-CODE SPRODescription of IMG activity CONDITION BASED EXCISE DETERMINATION1.10.1 DEFINE TAX CODE FOR PURCHASING DOCUMENTIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > DETERMINATION OF EXCISE DUTY > CONDITION BASED EXCISE DETERMINATION > DEFINE TAX CODE FOR PURCHASING DOCUMENTT-CODE SPRODescription of IMG activity DEFINE TAX CODE FOR PURCHASING DOCUMENTSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 44
    • SAP MM CIN SettingsFirst execute itSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 45
    • SAP MM CIN SettingsEnter the country code “in”.Press enterSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 46
    • SAP MM CIN SettingsEnter tax codePress enterEnter the tax percentage here.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 47
    • SAP MM CIN Settings1.10.2 ASSIGN TAX CODE TO COMPANY CODESIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > DETERMINATION OF EXCISE DUTY > CONDITION BASED EXCISE DETERMINATION > ASSIGN TAX CODE TO COMPANY CODEST-CODE SPRODescription of IMG activity ASSIGN TAX CODE TO COMPANY CODESSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 48
    • SAP MM CIN Settings1.10.3 CLASSIFY CONDITION TYPESIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > DETERMINATION OF EXCISE DUTY > CONDITION BASED EXCISE DETERMINATION > CLASSIFY CONDITION TYPEST-CODE SPRODescription of IMG activity CLASSIFY CONDITION TYPESSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 49
    • SAP MM CIN Settings1.10.3.1 CLASSIFY CONDITION TYPESHere we specify which condition type is used for which sort of tax. This is only applies to condition types thatwe use with the new excise determination method.The system uses this information when we create a document from another one.When we enter an incoming excise invoice from a purchase order, or when we create an outgoing exciseinvoice from a sale order, the system determines the various excise duties in the excise invoice using theinformation that we have entered here.When we create a purchasing document, the system only uses the condition types that we enter here.For taxes on purchases, use the condition types contained in the tax procedure.For taxes on sales, use the condition types contained in the pricing procedures.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 50
    • SAP MM CIN SettingsSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 51
    • SAP MM CIN Settings2. MASTER DATAIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > MASTER DATAT-CODE SPRODescription of IMG activity MASTER DATASAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 52
    • SAP MM CIN Settings2.1 MAINTAIN CHAPTER IDSIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > MASTER DATA > MAINTAIN CHAPTER IDST-CODE SPRODescription of IMG activity MAINTAIN CHAPTER IDSSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 53
    • SAP MM CIN Settings2.1.1 MAINTAIN CHAPTER IDSThe number given to material in the schedules of materials published by government of India.The schedule lists all materials involved in manufacturing, input materials and output materials alike. It showshow much excise duty is levied on each material.Each material in the schedule is assigned its own identification code, called “chapter ID”.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 54
    • SAP MM CIN SettingsSelect one itemClick on lensSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 55
    • SAP MM CIN Settings2.1.2 ASSIGN USERS TO MATERIAL MASTER SCREEN SEQUENCE FOR EXCISE DUTYHere we customize the material master data so that it shows the information relating to excise duty.CIN comes with a screen sequence that shows the excise duty fields. We have to assign it to each of ourusers.IMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > MASTER DATA > ASSIGN USERS TO MATERIAL MASTER SCREEN SEQUENCE FOR EXCISE DUTYT-CODE OMT3EDescription of IMG activity ASSIGN USERS TO MATERIAL MASTER SCREEN SEQUENCE FOR EXCISE DUTYSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 56
    • SAP MM CIN Settings2.1.2.1 SCREEN REFERENCE DEPENDING ON THE TRANSACTIONGrouping of transactions that determines what screens are displayed depending on the transaction when wemaintain material master records. It also determines the order in which the screens appear.2.1.2.2 SCREEN REFERENCE DEPENDING ON THE USERGrouping of users that determines what screens are displayed in accordance with the user master recordwhen we maintain material master records. It also determines the order in which the screens appear.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 57
    • SAP MM CIN Settings2.1.2.3 SCREEN REFERENCE DEPENDING ON THE MATERIAL TYPEGrouping of material types that determines what screens are displayed depending on the material type whenwe maintain material master records. It also determines the order in which the screens appear.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 58
    • SAP MM CIN Settings2.1.2.4 SCREEN REFERENCE DEPENDING ON THE INDUSTRY SECTORGrouping of industry sectors that determines what screens are displayed depending on the industry sectorwhen we maintain material master records. It also determines the order in which the screens appear.Select One Line And Click On Transaction Screen ReferenceSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 59
    • SAP MM CIN SettingsHere we assign the screen reference with the transaction code.We have assigned screen ref. 01 with transaction code MM01.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 60
    • SAP MM CIN SettingsThen click on user screen reference.Here we have assigned the user with the screen reference.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 61
    • SAP MM CIN SettingsThen click on material type screen reference.Here we assign the screen reference with the material type.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 62
    • SAP MM CIN SettingsThen click on industry sector screen reference.Here we assign the screen reference with the industry sector.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 63
    • SAP MM CIN Settings3. ACCOUNT DETERMINATIONIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > ACCOUNT DETERMINATIONT-CODE SPRODescription of IMG activity ACCOUNT DETERMINATIONSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 64
    • SAP MM CIN SettingsIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > ACCOUNT DETERMINATION > DEFINE G/L ACCOUNT FOR TAXEST-CODE OB40Description of IMG activity DEFINE G/L ACCOUNT FOR TAXESSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 65
    • SAP MM CIN SettingsSelect one transaction and then double click on it.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 66
    • SAP MM CIN Settings3.1.1 TRANSACTION KEYThe transaction keys are used to determine accounts or posting keys for line items, which are createdautomatically by the system.The transaction keys are defined in the system and cannot be changed by the user.Enter the chart of accountsSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 67
    • SAP MM CIN SettingsThen press enterWe will get the gl account where the tax amount flows.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 68
    • SAP MM CIN SettingsThen click on the posting key.3.1.2 POSTING KEYPosting key is used by the system if a debit or credit posting is to be created.A two-digit numerical key that determines the way line items are posted.This key determines several factors including the:Account typeType of posting (debit or credit)Layout of entry screens.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 69
    • SAP MM CIN SettingsThen click on rules3.1.3 INDICATORIndicates that different accounts can be determined for debit and credit posting during account determinationfor the chosen procedure.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 70
    • SAP MM CIN Settings3.1.4 TAX CODEA two-digit code that represents the specifications used for calculating and displaying tax.It is a key that has a different meaning depending on the business transaction and which is used todifferentiate account determination. The meaning is preset in the SAP system and cannot be changed.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 71
    • SAP MM CIN Settings3.2 SPECIFY EXCISE ACCOUNTS PER EXCISE TRANSACTIONHere we specify which excise accounts are to be posted to for the various transaction types. Enter all theaccounts that are affected by each transaction type.If we use subtransaction types, enter the accounts that are affected by each transaction type.If we use subtransaction types, enter the accounts for each subtransaction type as well.Transaction type UTLZ is used for determining accounts only while posting excise JV and also if the paymentof excise duty has to be done fortnightly.The fortnight CENVAT payment utility picks up the credit side accounts from the transaction types of GRPO,EWPO, and TR6C for determining the CENVAT and PLA accounts. There is no separate transaction type forfortnightly payment.Excise DC ind Account nameTTGRPO CR CENVAT clearing accountGRPO CR RG 23 BED accountGRPO DR CENVAT on hold accountIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > ACCOUNT DETERMINATION > SPECIFY EXCISE ACCOUNTS PER EXCISE TRANSACTIONT-CODE SPRODescription of IMG activity SPECIFY EXCISE ACCOUNTS PER EXCISE TRANSACTIONSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 72
    • SAP MM CIN SettingsSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 73
    • SAP MM CIN Settings3.2.1 EXCISE TRANSACTION TYPEThe system uses the excise transaction type to determine which G/L accounts have to be posted to.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 74
    • SAP MM CIN SettingsSub Transaction TypeSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 75
    • SAP MM CIN SettingsDebit/Credit IndicatorSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 76
    • SAP MM CIN SettingsAccount NameSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 77
    • SAP MM CIN Settings3.3 SPECIFY G/L ACCOUNTS PER EXCISE TRANSACTIONHere we assign the excise and CENVAT accounts to G/L accounts.When we come to execute the various transactions, the system determines which G/L accounts to post to bylooking at the:Excise groupCompany codeChart of accountsIf we want to separate account determination settings within an excise group, we can also usesubtransaction types.For each excise group, assign the excise and CENVAT accounts to G/L accounts. In most cases one set ofaccounts will suffice for all transactions.We need not remit the CENVAT to the excise department immediately, so maintain the credit account fortransaction type DLFC as an excise duty interim account. This will be set off when we remit the duty.IMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > ACCOUNT DETERMINATION > SPECIFY G/L ACCOUNT PER EXCISE TRANSACTIONT-CODE SPRODescription of IMG activity SPECIFY G/L ACCOUNT PER EXCISE TRANSACTIONSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 78
    • SAP MM CIN SettingsSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 79
    • SAP MM CIN Settings3.3.1 OFFSETRecords the excise duty calculated at the time of invoice verification. The values in this account and theCENVAT clearing account are balanced if there is no difference in the excise amounts at goods receipt andinvoice verification.The values in this account and the CENVAT clearing account are compared after invoice verification.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 80
    • SAP MM CIN Settings3.3.2 MODVAT CLEARINGThe G/L account for Modvat Clearing is used to post the excise amount at the time of Goods Receipt in caseof material for which Modvat can be availed.The values in the Modvat Clearing account and the Modvat Offset Account are compared after invoiceverification.At GR, the Modvat amount is posted as follows:Modvat Plant A/c drTo Modvat Clearing A/c.3.3.3 GL ACCOUNT FOR PLA BEDThe Personal Ledger Account (PLA) has the value of funds deposited with the central government into theBank Account nominated by them. The funds in the PLA account are used exclusively for the payment ofexcise duty.The fund in either the PLA Account or the RG23A account or the RG23C account are used for payment ofexcise duty at sales invoicing.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 81
    • SAP MM CIN Settings3.3.4 CENVAT ON HOLDRecords any CENVAT that is temporarily not available and therefore “on hold” until certain conditions aremet.Countervailing duty paid on imports is not available for utilization until receipt of the goods. On receipt ofgoods, the relevant duty is to be transferred to the appropriate CENVAT account of the plant.3.3.5 CENVAT SUSPENSERecords excise duty from sales documents. The excise duty is subsequently paid from the CENVAT RG23A, RG23C, or personal ledger accounts.3.3.6 PLA ON HOLDCheques deposited, into the PLA Account maintained with the bank, are posted to this general ledgeraccount initially, pending realization.The balance in this account is not available for payment of excise duty on dispatches until the intimation ofrealization of cheque is received from the bank.Subsequently, the realized amounts are transferred to the GL account for PLA maintained for the plant.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 82
    • SAP MM CIN Settings3.3.7 CENVAT REVERSALReversal amount of the CENVAT is deposited in this GL Account.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 83
    • SAP MM CIN Settings4. BUSINESS TRANSACTIONSIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BUSINESS TRANSACTIONST-CODE SPRODescription of IMG activity BUSINESS TRANSACTIONSSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 84
    • SAP MM CIN Settings4.1 INCOMING EXCISE INVOICESIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BUSINESS TRANSACTIONS > INCOMING EXCISE INVOICET-CODE SPRODescription of IMG activity INCOMING EXCISE INVOICESAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 85
    • SAP MM CIN Settings4.1.1 SELECT FIELDSIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BUSINESS TRANSACTIONS > INCOMING EXCISE INVOICE > SELECT FIELDST-CODE SPRODescription of IMG activity SELECT FIELDSHere we specify which fields we want in the INCOMING EXCISE INVOICES transaction.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 86
    • SAP MM CIN SettingsThe settings that we make here apply for all versions of the transaction that we might create.IMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BUSINESS TRANSACTIONS > INCOMING EXCISE INVOICE > DEFINE PROCESSING MODE PER TRANSACTIONT-CODE SPRODescription of IMG activity DEFINE PROCESSING MODE PER TRANSACTIONSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 87
    • SAP MM CIN SettingsSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 88
    • SAP MM CIN Settings4.1.2. DEFINE PROCESSING MODE PER TRANSACTIONHere we specify which processing modes the user can use in the various incoming excise invoicetransactions.The system comes with three standard transactions relating to the incoming excise invoices function. Theprocessing modes available in these transactions are as follows:J1IEX_CUsers of this transaction can only capture and display excise invoices.J1IEX_PWith this we can change, display, cancel and post excise invoices.J1IEXHere we capture and post excise invoices, as well as displaying, changing, and canceling them.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 89
    • SAP MM CIN Settings4.1.3 DEFINE REFERENCE DOCUMENT PER TRANSACTIONIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BUSINESS TRANSACTIONS > INCOMING EXCISE INVOICE > DEFINE REFERENCE DOCUMENT PER TRANSACTIONT-CODE SPRODescription of IMG activity DEFINE REFERENCE DOCUMENT PER TRANSACTIONSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 90
    • SAP MM CIN SettingsHere we specify for each combination of transaction and processing mode which reference documents wewant the users to be able to use.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 91
    • SAP MM CIN Settings4.1.4 MAINTAIN REJECTION CODESHere we define the rejection codes that we use in the incoming excise invoices.For each rejection code, enter a code and a description. We can also specify whether the excise duty in theinvoice is to be posted to the CENVAT on hold account, instead of the CENVAT clearing account.IMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BUSINESS TRANSACTIONS > INCOMING EXCISE INVOICE > MAINTAIN REJECTION CODET-CODE SPRODescription of IMG activity MAINTAIN REJECTION CODESAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 92
    • SAP MM CIN SettingsSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 93
    • SAP MM CIN Settings4.1.5 SPECIFY WHICH MOVEMENT TYPES INVOLVES EXCISE INVOICESHere we specify which movement types relating to goods receipts involve excise invoices.The system uses this information during the goods receipt procedure. When we post a goods receipt usingone of the movement types that we have specified here, the system prompts us to enter the excise invoicenumber.This option cannot be used for processing goods receipts without purchase orders.IMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BUSINESS TRANSACTIONS > INCOMING EXCISE INVOICE > SPECIFY WHICH MOVEMENT TYPES INVOLVE EXCISE INVOICET-CODE SPRODescription of IMG activity SPECIFY WHICH MOVEMENT TYPES INVOLVE EXCISE INVOICESAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 94
    • SAP MM CIN SettingsSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 95
    • SAP MM CIN Settings4.2 SUBCONTRACTINGIn subcontracting, the vendor is provided with materials, which he uses to produce the finished product.From the point of view of materials planning, subcontracting is initiated by the special procurement keysubcontracting. The special procurement key is allocated to the finished product or the assembly in thematerial master in MRP 2 view.IMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BUSINESS TRANSACTIONS > SUBCONTRACTINGT-CODE T-CODE SPRODescription of IMG activity SUBCONTRACTINGSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 96
    • SAP MM CIN Settings4.2.1 SUBCONTRACTING ATTRIBUTESThe subcontracting attributes help determine conditions for a combination of an excise group, a transactiontype and a subtransaction type.The conditions such as the number of excise items per subcontracting challan, if the nonexciseable materialshave to be filtered or not when the subcontracting challan is created, the movement type groups for issuesand receipts and the hierarchy of determining the excise base value are mentioned here.IMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BUSINESS TRANSACTIONS > SUBCONTRACTING > SUBCONTRACTING ATTRIBUTEST-CODE SPRODescription of IMG activity SUBCONTRACTING ATTRIBUTESSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 97
    • SAP MM CIN Settings4.2.1.1 SUBCONTRACTING ATTRIBUTESThe maximum number of days that the material can be with subcontractor without us having to reverse theexcise on the CENVAT account.This information is used when we create a subcontracting challan to determine on exactly which date thematerials have to be returned by.4.2.1.1.1 SUBCONTRACTING CHALLANDocument that we use to issue and track subcontracting work. It allows us to make sure that all the materialswe have sent to the subcontractor for processing are returned.The challan consists of a header and line items. The header, in addition to organizational data, we shouldenter: • Preprinted number • Additional data • Identification marks • Nature of processing.Each challan has two numbers, an internal document number and a challan number, which the systemassigns to the challan when we save it. From a business perspective, this is the most important number.Each challan also has a status, which shows us what stage in processing it is at.The line items are copied across from the transfer posting when we create the challan. We can also enteradditional data for each item.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 98
    • SAP MM CIN Settings4.2.1.2 EXCISE PERCENTAGE RATEExcise duty percentage applicable for subcontract operations.4.2.1.3 MOVEMENT TYPE GROUP FOR ISSUEThe movement types relevant for issue of materials are grouped for a combination of transaction type andsubtransaction type.4.2.1.4 MOVEMENT TYPE GROUP FOR RECEIPTReceipts of materials are grouped for a combination of transaction type and subtransaction type.4.2.1.5 EXCISE INVOICE ITEMSIt shows the maximum number of line items that we are allowed to include in a single outgoingexcise invoice.This information affects the transactions for creating outgoing excise invoices for factory sales andfor other movements.This information is used to split the transfer postings items into multiple subcontracting challans.4.2.1.6 BASE VALUE BASED ON ASSESSABLE VALUE / EXCISE INVOICEThe hierarchy of determining the excise base value from the assessable value table or from the exciseinvoice is dependent on this indicator.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 99
    • SAP MM CIN Settings4.2.2 MAINTAIN MOVEMENT TYPE GROUPSIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BUSINESS TRANSACTIONS > SUBCONTRACTING > MAINTAIN MOVEMENT TYPE GROUPST-CODE SPRODescription of IMG activity MAINTAIN MOVEMENT TYPE GROUPSSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 100
    • SAP MM CIN SettingsSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 101
    • SAP MM CIN Settings4.2.2.1 MOVEMENT TYPE GROUPMovement 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.4.3 EXCISE REGISTERThe excise authorities require us to maintain in a number of registers relating to excise duty. They have to beprinted out monthly and shown to the authorities in the event of an audit. The SAP system makes all theentries for these registers automatically, and we can prepare copies of them as and when necessary.Alternatively, we can download the data for processing by non-SAP software.The SAP system handles the following excise registers: • Register RG 1 • Register RG 23A and 23C, PARTS I and II • Register RG 23DPersonal ledger account (PLA)This is the bank account from which we transfer any money owing to the excise authorities.Register RT-12This is the monthly report that summarizes the CENVAT and PLA information from the other registers.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 102
    • SAP MM CIN SettingsIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BUSINESS TRANSACTIONS > EXCISE REGISTERT-CODE SPRODescription of IMG activity EXCISE REGISTERSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 103
    • SAP MM CIN Settings4.3.1 SPECIFY SAPSCRIPT FORMSIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BUSINESS TRANSACTIONS > EXCISE REGISTER > SPECIFY SAPSCRIPT FORMST-CODE SPRODescription of IMG activity SPECIFY SAPSCRIPT FORMSIn this IMG activity, for every company codes, we specify which SAPscript forms the system prints the exciseregisters with.In CIN there are some sample sapscript forms, which we useREGISTER NAME LAY NO. FORM TCODE/PROGRG23A Part I 1 J_2IRG23A_PART1 J_2IRAP1RG 23C Part I 1 J_2IRG23C_PART1 J_2IRCP1RG 23A Part II 1 J_2IRG23A_PART2 J_2IRAP2RG 23C Part II 1 J_2IRG23C_PART2 J_2IRCP2PLA 1 J_2I_PLA J_2IPLARG 23 D 1 J_2I_RG23D J_2IRG23RG 1 1 J_2I_RG1 J_2IRRG1RT 12 1 J_2I_RT12_ABSTRA J_2IRT12RT 12 1 J_2I_RT12_ABSTRA J_2IRT12RT 12 1 J_2I_RT12_3 J_2IRT12SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 104
    • SAP MM CIN SettingsThe layout description can be left blank or an appropriate description maybe filled in. We may not change theregister name. We can have our own layouts and maintain the name here. If the output device and numberoff copies are maintained it is automatically picked up for printing.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 105
    • SAP MM CIN Settings5. TOOLSIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > TOOLST-CODE SPRODescription of IMG activity TOOLSSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 106
    • SAP MM CIN Settings5.1 LONG TEXTSIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > TOOLS > LONG TEXTST-CODE SPRODescription of IMG activity LONG TEXTSHere we define the different types of long texts that we want to be able to maintain in the various excisetransactions.There is no limit to the number of types of long texts we can define.For each long text, we have to specify which transactions the long texts are forTransactions involving CodeExcise invoices J1IAExcise JVs J1IHSubcontracting 57F4 J1IFFactory sales J1IIIf we want to create a long text for the incoming excise invoices transaction, enter J1IA.Then give the long text an ID and description of our choice.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 107
    • SAP MM CIN SettingsSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 108
    • SAP MM CIN Settings5.2 NUMBER RANGESIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > TOOLS > NUMBER RANGEST-CODE SPRODescription of IMG activity NUMBER RANGESSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 109
    • SAP MM CIN Settings5.3 MESSAGE CONTROLIMG Activity path IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > TOOLS > MESSAGE CONTROLT-CODE SPRODescription of IMG activity MESSAGE CONTROLIn this activity, we can specify whether a given message should appear as a warning message or an errormessage.Enter each message that we want, specifying whether it should apply to one user or all users.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 110
    • SAP MM CIN SettingsRelated Contenthttps://www.sdn.sap.com/irj/sdn/thread?messageID=906630https://www.sdn.sap.com/irj/sdn/thread?messageID=918619https://www.sdn.sap.com/irj/sdn/thread?messageID=1933349For more information, visit the Enterprise Resource Planning homepage.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 111
    • SAP MM CIN SettingsDisclaimer and Liability NoticeThis document may discuss sample coding or other information that does not include SAP official interfaces and therefore is notsupported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade.SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document,and anyone using these methods does so at his/her own risk.SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article orcode sample, including any liability resulting from incompatibility between the content within this document and the materials andservices offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of thisdocument.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com© 2008 SAP AG 112