Your SlideShare is downloading. ×
Cin
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Cin

2,634
views

Published on

Published in: Business, Economy & Finance

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,634
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
322
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Cin /excise invoice in sales and distribution excise registers ETC 1. In Indian Taxing procedure, Excise Duty plays a vital role in manufacturing cenario’s. Excise related configuration is known as CIN configuration. CIN Configuration is a topic in itself. Some info on CIN Configuration (it may not appear as understandable below, but if you check on screen, it will be understood better): Country Version India comes with four pricing procedures as follows: • JINFAC (Sales from manufacturing plants) • JINEXP (Export sales) • JINDEP (Sales from depots) • JINSTK (Stock transfers CIN: IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings > Maintain Excise Registrations Use In this IMG activity, you maintain the data relating to your excise registrations. Activities Enter each of your excise registrations, specifying a four-character code for each Excise Registration IDs In this activity, you maintain excise registration IDs. You create one ID for each of your businesss excise registrations. Activities For each excise registration in your business create a registration ID, and state: • Which taxes the registration covers (additional excise duty, special excise duty, and cess)Fields for any taxes that are not covered will be hidden in transactions involving excise duty. • The maximum number of items to be printed on each excise invoice • Whether you are allowed partial CENVAT credits Maintain Registration ID NUMBER, Excise code number, excise registration number Excise Registration Number
  • 2. A number assigned to each premises or location that has registered as amanufacturer with the excise authorities.Every entity with an excise registration number is required to keep its own excisebooks.ECC NumberSpecifies the organizations ECC number.Excise Registration NumberA number assigned to each premises or location that has registered as amanufacturer with the excise authorities.Every entity with an excise registration number is required to keep its own excisebooks.Excise range: Specifies the excise range in whose area the excise registration islocated.Excise DivisionSpecifies the excise division in whose area the excise registration is located.Excise CollectorateThe code of the excise collectorate in whose area the excise registration is located.Indicator for confirming AED usageAdditional Excise duty Percentage. These are leviable under the additional duties ofexcise act. These duties are in addition to basic excise duty and special excise duty.ExampleAdditional Excise duty is leviable in case of textile products, tobacco and sugar.Similarly for SED CESSNumber of Items in Excise InvoiceShows the maximum number of line items that the authorities allow per exciseinvoice.DependenciesThis information is used when you create an excise invoice in Sales and Distribution(SD) for factory sales and for other movements.This information is used to split the transfer postings items into multiplesubcontracting challans.
  • 3. Excise register set descriptionDescription of the excise registers set.Partial CENVAT CreditIndicates that the excise registration ID is allowed to credit only a portion of its inputexcise duty to its CENVAT account.DependenciesWhen you post a goods receipt, the system splits the input excise duty on thematerial into its deductible and nondeductible amounts. It posts the deductible dutyto the appropriate CENVAT account, and adds the nondeductible duty to the materialvalue.This information is also shown when you post the vendors excise invoice.Maintain Company Code SettingsUseIn this IMG activity, you maintain the data relating to your company codes.Document Type for CENVAT PostingsIt controls, which document type the system uses when making CENVAT postings inFinancial Accounting (FI). Here ED is document type for cenvat posting.Indicator for providing debit account overwritingDebit Account Overwrite Indicator. X - Indicates debit accounts can be overwritten.Use In excise journal voucher transaction. It provides the flexibility to the user toenter the debit account of his choice depending on the nature of transaction.Automatic balance IndicatorExcise year start monthThe calendar month marking the beginning of the excise yearUseThis start month represents the month for the start of the excise invoice numberrange. The month 04 is entered here indicating April of the calendar year as the startmonth for excise invoices. Any change by the Excise authorities regarding startmonth should be taken care of by an entry in this field and initialization.Excise invoice selection procedureExcise invoice selection type. To indicate the method opted by the company forselecting the excise invoice. It can be either earliest or latest invoices that werereceived.
  • 4. Number of excise invoices to be selectedIndicates the number of excise invoices that needs to be selected in the exciseinvoice selection.Days to be considered for excise invoice selectionNumber of days from document date for excise invoice selection.ExampleIf the value of this field is 20 and today is 28-03-97. The exciseinvoice selection will show the related invoices only for theperiod 08-03-97 to 28-03-97.Document type for TDS FI postingFinancial accounting document type for TDS posting.Document type for FI posting on UtilisationFinancial accounting document type for TDS posting.Indicator for item level excise duty round offThis indicator is to be used for deciding whether Item level excise duty amountrounding off is required during procurement cycle. If marked X then the excise dutyamount will be rounded off to the nearest rupee at the Purchase order level. This willnot round off the CENVAT credit to be taken. If the duty amount is less than onerupee then no rounding is doneRounding off of Excise duty for outgoing excise invoiceYou can round off the Excise amount to be paid during an outgoing Excise invoice bymarking this indicator as X. The rounding is done at the item level for each itemwhere the amount is greater than 1 Rupee.Immediate Credit on Capital GoodsInstructs the system, when you verify a goods receipt for capital goods, toimmediately post half of the input excise duty to the appropriate CENVAT accounts.The rest is posted the CENVAT on hold account, for use in the following year.CVD Clearing AccountSpecifies which G/L account the system credits when you take a CENVAT credit oncountervailing duty in the Incoming Excise Invoices transaction.Exchange rate typeKey representing a type of exchange rate in the system.
  • 5. UseYou enter the exchange rate type to store different exchange rates.ExampleYou can use the exchange rate type to define a buying rate, selling rate, or averagerate for translating foreign currency amounts. You can use the average rate for thecurrency translation, and the bank buying and selling rates for valuation of foreigncurrency amounts.Exchange rate type to be used for Export excise duty convertsWhen you are creating an Excise invoice for export sales then the exchange rate forduty calculation will be picked up using this Exchange rate type.Maintain Plant SettingsUseIn this IMG activity, you maintain excise information relating to your plants.Plant SettingsIn this activity, you maintain excise information relating to your plants.ActivitiesFor each plant:• Specify whether it is a manufacturing site or a depot.• Assign it an excise registration ID.You can assign the same ID to more than one plant, if required.DepotIndicates that the plant in question is a depot.DependenciesDepots are required to prepare register RG 23D, and follow different procedures forgoods receipt and invoice generation.Number of goods receipt per excise invoice.Multiple GR for one excise invoice, Single creditMultiple GR for one excise invoice, Multiple creditMaintain Excise GroupsUseIn this IMG activity, you define your excise groups. For each excise group, you canalso control how various excise invoice transactions will work.Excise GroupsIn this activity, you define excise groups. An excise group allows you to maintain aseparate set of excise registers and excise accounts. The RG 23A, RG 23C and PLA
  • 6. serial numbers are created for an excise group.RecommendationUnder normal circumstances, excise authorities require every business to maintainonly one set of excise registers and one set of accounts. But through exemption fromthe authorities, multiple books can be maintained.If your company has only one set of excise registers, then you need to maintain onlyone excise group.Activities1. Create one excise group for each set of registers that you need to keep.1. Assign the excise groups to plants.2. Maintain whether this Excise group is for a depot or not.3. If you receive only one consignment for an Excise challan then you can leave GRsper EI as blank. If you receive multiple GRs for a given Excise challan and would liketo avail multiple credit mark the GRs per EI as Multiple GRs for one excise invoice,multiple credit. Alternatively if you want to availa the credit only after all the goodsreceipts have been made mark it as Multiple GR for one excise invoice, singlecredit.4. If you want to automatically create Excise invoice during Sales cycle at the time ofbilling the tick the indicator Create EI5. During depot sales if you do not want to do RG23D selection and postingseparately and would like to complete RG23D selection in one step mark theindicator RG23D Auto post. This will post the selected records into RG23Dautomatically. You cannot cancel the selection later.6. If the indicator Default GR qty is marked system will default the Excise challanquantity on to the Goods receipt if the Excise invoice number is given in the pop-up.7. If the indicator Folio no create is marked system will generate Folio numbers forRG23D during receipt of excise invoice into depot.8. Automatic posting when ticked will post the Excise invoice other movementsautomatically along with creation in single step.9. Create Part1 for Block Stock when marked will create a Part1 during the receiptof material into Blocked stock .10. Create Part1 for STO when marked will create a Part1 during the receipt ofmaterial through inter plant transfers.11. Create Part1 for consumption stock when marked will create a Part1 during thereceipt of material into consumption stock.Excise GroupGoverns which set of excise registers a business transaction will be included in.Following is the relation between excise group, plant and registration.
  • 7. DependenciesIn define excise groups in Customizing.Then, in transactions involving excise duty, for example, when you post a vendorsexcise invoice, you specify which excise group you are using. This information tellsthe system which G/L accounts to post the excise to.At the end of the period, when you come to prepare your excise registers, you createdifferent sets for each excise group.Indicates that the plant in question is a depot.DependenciesDepots are required to prepare register RG 23D, and follow different procedures forgoods receipt and invoice generation.GR Per Excise InvoiceMultiple GR for one excise invoice , Multiple creditMultiple GR for one excise invoice , Single CreditCreate Excise Invoice AutomaticallyInstructs the system to automatically create a Sales and Distribution (SD) exciseinvoice immediately you create a commercial invoice or a pro forma invoice.The excise invoice is created in the background.DependenciesIf you want to make use of this function, you must also define the default plant,excise group, and series groups in Customizing for Sales and Distribution (SD), bychoosing Excise Group - Series Group Determination.RG23D Sales Creation and posting optionRG23D Automatic Option if selected will create Depot excise invoice by posting theselection of excise invoices in single step.If this is not selected then you need to separately do RG23D selection followed byPGI and then RG23D verification and posting.If you need automatic posting of RG23D selection then the Post Goods Issue shouldhave been completed before running RG23D selection.Default excise qty in GRIf this indicator is ticked then while doing Goods Receipt using MB01 system willdefault the excise invoice quantity on to the Goods receipt document.
  • 8. Folio number for depoPostingIf this indicator is marked then while creating Excise invoice for other movementssystem automatically does the Verify and Post. You need not separately Post theexcise invoiceAlso we can set indicator for creation of part 1 for:Blocked stockStock transport orderConsignment stockMaintain Series GroupsUseIn this IMG activity, you define the different excise series groups within yourcompany. Series groups allow you to maintain multiple number ranges for theoutgoing excise documents.Based on excise regulations and exemptions from the authorities you can maintainmultiple number series for outgoing documents. But each of these series has to bedeclared to the excise authorities.Activities• Define excise series groups based on type of outgoing document• Assign series group to excise registration ID• If no financial postings are required for an Excise invoice in this seris group thenyou tick the No utilization indicator.• If the CENVAT has to be paid immediately and you need not wait for the Fortnightly payment then mark the Immediate Utilization indicator.ExampleYou could define two series groups, group 001 for excise invoices, and group 002 for57 F4 documents.No account postings for CENVAT in sales cycleNo utilization FlagIf you do not need any CENVAT utilization for an excise invoice but would like to justgenerate an excise invoice then you need to mark this indicator.IF the flag is checked then system will create an Excise invoice in the given Seriesgroup but there will not be any account postings or Part2 postings.Immediate Utilization of CENVATSpecifies that when you create an excise invoice, the system immediately pays theamount from CENVAT and creates the Part II entry. Such invoices will not be listed
  • 9. for fortnightly utilization.If you have both fortnightly and immediate utilization for the same excise group, theaccount determination within CIN IMG should point to the ED interim account.Account determination for immediate payment will be done exactly the same asbeing done for fortnightly utilization program.Maintain Excise Duty IndicatorsUseIn this IMG activity, you maintain the excise duty indicators.IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings >Determination of Excise Duty >Select Tax Calculation ProcedureUseIn this IMG activity, you specify which tax procedure you want to use for determiningexcise duties and sales taxes on input materials in India.• If you use condition-based excise determination, use a copy of the tax procedureTAXINN.• If you use formula-based excise determination, use a copy of the tax procedureTAXINJ.This tax procedure also supports condition-based excise determination, so that youcan work with both concurrently.We strongly recommend that new customers use condition-based excisedetermination. Note that once you have started using a tax procedure, you cannotswitch to another one, otherwise you will not be able to display old documents.Maintain Excise DefaultsUseIn this IMG activity, you define which tax procedure and pricing condition types areused in calculating excise taxes using formula-based excise determination.ActivitiesIf you use condition-based excise determination, fill out the CVD cond. field andleave all the others blank.If you use formula-based excise determination, fill out all of the fields as follows:• Enter the tax procedure and the pricing conditions that are relevant for excise taxprocessing.• Specify the purchasing and sales conditions types used for basic excise duty,additional excise duty, special excise duty, and cess.• Specify the conditions in the sales order that are used for excise rates.• Specify the countervailing duty condition type used for import purchase orders.See also
  • 10. SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> MaterialsManagement (MM) -> Condition-Based Excise Determination and -> Formula-BasedExcise Determination.IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings >Determination of Excise Duty >Condition-Based Excise DeterminationUseWhen you enter a purchasing document, for example, a purchase order, the R/3System automatically calculates the applicable excise duties using the conditiontechnique.FeaturesThe standard system comes with two tax calculation procedures. TAXINN is onlysupports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise determination. Both taxprocedures contain condition types that cover all of the excise duties and sales taxesapplicable.Since the exact rates of excise duty can vary on a large number of factors, such aswhich vendor you purchase a material from, or which chapter ID the vendor stocksthe material under, you create condition records for every sort of excise duty.When you come to enter a purchasing document, the system applies the excise dutyat the rates you have entered in the condition records.ActivitiesCustomizingfor Logistics India Make the settings in Customizing Basic Excise Duties Using –General, by choosing Taxes on Goods Movements Account SettingsDetermination. Condition Technique and …These activities include one activity where you define a tax code for condition-basedexcise determination.Master DataCreate condition records for all excise duties that apply, and enter the tax code forcondition-based excise determination in each.Day-to-Day ActivitiesWhen you enter a purchase order or other purchasing document, enter the tax codefor condition-based excise determination in each line item. The system thencalculates the excise duties using the condition records you have created.When the ordered materials arrive, you post the goods receipt and the exciseinvoice. The system posts the excise duty to the appropriate accounts for deductibleinput taxes when you enter the excise invoice.Creating Condition Records for Excise Duty1. In the command field, enter FV11 and choose .
  • 11. 2. Enter the condition type that you want to create a condition record for and choose.The Key Combination dialog box appears.3. Select the combination of objects that you want to create the condition recordfor.On the dialog box, Control Code means "chapter ID."So, for example, to create a condition record for a tax that applies to a combinationof country, plant, and chapter ID, select Country/Plant/Control Code.4. Choose .5. Enter data as required.In the Tax Code field, enter the dummy tax code that you have defined.6. Save the condition record.Formula-Based Excise DeterminationUseWhen you execute a business transaction involving materials that are subject toexcise duty, the system automatically calculates the duty for you.PrerequisitesIn order for the system to be able to determine which rate of excise duty to apply,you must have maintained all the access data on the Excise Rate Maintenancescreen, which you can Master Data from the SAP Easy Access screen by choosingIndirect Taxes Excise Rate Maintenance.You maintain the following types of data:• Plant master dataYou assign each of your plants an excise duty indicator. You can use the sameindicator for all the plants with the same excise status from a legal point of view,such as all those that are in an exempt zone.See also the information about manufacturers that are only entitled to deduct acertain portion of the duty (see Partial CENVAT Credit).• Vendor master dataFor each of your vendors with the same excise status from a legal perspective, youdefine an excise duty indicator. You must also specify the vendor type – for example,whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must alsostipulate if the vendor qualifies as a small-scale industry.For each permutation of plant indicator and vendor indicator, you then create a finalexcise duty indicator.• Customer master dataSimilarly, you assign the same excise duty indicator to each of your customers thatshare the same legal excise status.Again, for each permutation of plant indicator and customer indicator, you thencreate a final excise duty indicator.
  • 12. • Material master dataEach material is assigned a chapter ID.• Excise tax rateFor every chapter ID and final excise duty indicator, you maintain the rate of exciseduty.If your business only qualifies for partial CENVAT credit, you must customize yoursystem accordingly.ActivitiesLet us consider an example to illustrate how the system determines which rate ofexcise duty to apply to a material. Assume you are posting a sale of ball bearings toa customer. The system automatically determines the rate of excise duty as follows:1. Looks up the customer master data to see what status you have assigned thecustomer.Lets assume youve assigned the customer status 3.2. Looks up the plant master data to see what status you have assigned the plant.Similarly, your plant has status 2.3. The system looks up the table under Excise Indicator for Plant and Customer tosee what the final excise duty indictor is for customer status 3 and plant status 2: Itis 7.4. The system determines the chapter ID of the ball bearing for the plant.Let’s assume the chapter ID at plant for the ball bearings is 1000.01.5. Finally, the system looks up the table under Excise Tax Rate to see what rate ofduty applies to chapter ID 1000.01 under status 7.Define Tax Code for Purchasing DocumentsUse : In this IMG activity, you define a tax code for the purposes of calculatingexcise duty when you enter purchasing documents.Only carry out this activity if you use condition-based excise determination.Activities: Create a new tax code, and set the tax code type to V (input tax). Do notmake any other settings for it.Assign Tax Code to Company CodesUseIn this IMG activity, assign the tax code for purchasing documents to the companycodes where it will be used.Only carry out this activity if you use condition-based excise determination.Classify Condition TypesUseIn this IMG activity, you specify which condition types you use for which sort of tax.Note that this only applies to condition types that you use with the new excisedetermination method.
  • 13. The system uses this information when you create a document from another one. Forexample, when you enter an incoming excise invoice from a purchase order, or whenyou create an outgoing excise invoice from a sales order, the system determines thevarious excise duties in the excise invoice using the information that you haveentered here.In addition, when you create a purchasing document, the system only uses thecondition types that you 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.Standard settingsThe standard system comes with sample settings for the tax calculation proceduresand pricing procedures.Use these settings as a basis for your own.IMG > Logistics - General > Tax On Goods Movement > India > AccountDeterminationDefine G/L Accounts for TaxesUseIn this IMG activity, you specify which G/L accounts you will use to record whichtaxes.RequirementsYou have set up G/L accounts for each of the processing keys listed below.ActivitiesAssign an account to each of the following posting keys. The accounts for VS1, VS2,and VS3 are used as clearing accounts during excise invoice verification.• VS1 (basic excise duty)• VS2 (additional excise duty)• VS3 (special excise duty)• VS5 (sales tax setoff)• MWS (central sales tax)• MW3 (local sales tax)• ESA (service tax)• ESE (service tax expense)Specify Excise Accounts per Excise TransactionUseIn 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 areaffected by each transaction type.If you use subtransaction types, enter the accounts for each subtransaction type aswell.
  • 14. ActivitiesTransaction type UTLZ is used for determining accounts only while posting excise JVsand also if the payment of excise duty has to be done fortnightly.The fortnightly CENVAT payment utility picks up the credit side accounts from thetransaction types of GRPO, EWPO, and TR6C for determining the CENVAT and PLAaccounts. There is no separate transaction type for fortnightly payment.ExampleExcise TT DC ind Account nameGRPO CR CENVAT clearing accountGRPO CR RG 23 BED accountGRPO DR CENVAT on hld accountSpecify G/L Accounts per Excise TransactionUseIn this IMG activity, you assign the excise and CENVAT accounts to G/L accounts.When you come to execute the various transactions, the system determines whichG/L accounts to post to by looking at the:• Excise group• Company code• Chart of accountsFurthermore, if you want separate account determination settings within an excisegroup, you can also use sub transaction types.RequirementsYou have already:• Defined the G/L accounts• Defined the excise groups• Maintained the transaction accountsActivitiesFor each excise group, assign the excise and CENVAT accounts to G/L accounts. Formost businesses, one set of accounts will suffice for alltransactions.NoteYou need not remit the CENVAT to the excise department immediately, so maintainthe credit account for transaction type DLFC as an excise duty interim account. Thiswill be set off when you remit the duty.Config setting needed to be done in order to get the Excise Details Screen in MaterialMaster.Even though this functionality is available in enterprise version, a small config stephas to be made in Screen Sequences for Material Master.
  • 15. Following document helps you to do this configuration.1. Logistics General Material Master Configuring the Material Go to IMG DefineStructure of Data Screen for each master Screen Sequence.2. Select your screen sequence. Usually it would be 21. Select the same and click onData Screen in the left frame.3. Once the data screens are exhibited, select data screen no. 15, ie. SSq. 21andScrn 15, which is “Foreign Trade: Import Data”. Select the same and click onSubscreens in the left frame.4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select the same.Click on tab view subscreen and ensure that the subscreen is blank.5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 – 0001 and instead addSAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.6. Save the setting.7. Create a Material Master and check whether in Screen Foreign Trade – Import,Excise related subscreen

×