1. SAP SD CIN Configuration
What is CIN?
CIN Means Country India Version
In Indian Taxing procedure, Excise Duty plays a vital role in
manufacturing scenario’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
In this IMG activity, you maintain the data relating to your excise
registrations.
- 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 business's excise registrations.
- 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

2. ECC Number: Specifies the organization's ECC number.
Excise Registration Number: A number assigned to each premises
or location that has registered as a manufacturer with the excise
authorities.
Every entity with an excise registration number is required to keep its
own excise books.
Excise range: Specifies the excise range in whose area the excise
registration is located.
Excise Division: Specifies the excise division in whose area the
excise registration is located.
Excise Collectorate: The code of the excise collectorate in whose
area the excise registration is located.
Indicator for confirming, AED usage Additional Excise duty
Percentage.
These are livable under the additional duties of excise act. These
duties are in addition to basic excise duty and special excise duty.
Example - Additional Excise duty is livable in case of textile products,
tobacco and sugar.
Similarly for SED CESS Number of Items in Excise Invoice Shows
the maximum number of line items that the authorities allow per
excise invoice.
Dependencies - This 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 multiple subcontracting challans.
Excise register set description: Description of the excise registers set.
Partial CENVAT Credit: Indicates that the excise registration ID is
allowed to credit only a portion of its input excise duty to its CENVAT
account
Dependencies - When you post a goods receipt, the system splits the
input excise duty on the material into its deductible and
nondeductible amounts. It posts the deductible duty to the
appropriate CENVAT account, and adds the nondeductible duty to
the material value.
This information is also shown when you post the vendor's excise
invoice.

3. Maintain Company Code Settings.
In this IMG activity, you maintain the data relating to your company
codes.
Document Type for CENVAT Postings.
It controls, which document type the system uses when making
CENVAT postings in Financial Accounting (FI). Here ED is document
type for cenvat posting.
Indicator for providing debit account overwriting
Debit Account Overwrite Indicator. X - Indicates debit accounts can
be overwritten. Use In excise journal voucher transaction. It provides
the flexibility to the user to enter the debit account of his choice
depending on the nature of transaction.
Automatic balance Indicator - Excise year start month. The calendar
month marking the beginning of the excise year. This start month
represents the month for the start of the excise invoice number
range. The month 04 is entered here indicating April of the calendar
year as the start month for excise invoices. Any change by the Excise
authorities regarding start month should be taken care of by an entry
in this field and initialization.
Excise invoice selection procedure :Excise invoice selection type. To
indicate the method opted by the company for selecting the excise
invoice. It can be either earliest or latest invoices that were received.
Number of excise invoices to be selected Indicates the number of
excise invoices that needs to be selected in the excise invoice
selection.
Days to be considered for excise invoice selection Number of days
from document date for excise invoice selection.
Example - If the value of this field is 20 and today is 28-03-97. The
excise invoice selection will show the related invoices only for the
period 08-03-97 to 28-03-97.
Document type for TDS FI posting: Financial accounting document
type for TDS posting.
Document type for FI posting on Utilisation Financial accounting
document type for TDS posting.

4. Indicator for item level excise duty round off - This indicator is to be
used for deciding whether Item level excise
duty amount rounding off is required during procurement cycle. If
marked 'X' then the excise duty amount will be rounded off to the
nearest rupee at the Purchase order level. This will not round off the
CENVAT credit to be taken. If the duty amount is less than one rupee
then no rounding is done
Rounding off of Excise duty for outgoing excise invoice - You can
round off the Excise amount to be paid during an outgoing
Excise invoice by marking this indicator as 'X'. The rounding is done
at the item level for each item where the amount is greater than 1
Rupee.
Immediate Credit on Capital Goods - Instructs the system, when you
verify a goods receipt for capital goods, to immediately post half of
the input excise duty to the appropriate CENVAT accounts. The rest
is posted the CENVAT on hold account, for use in the following year.
CVD Clearing Account - Specifies which G/L account the system
credits when you take a CENVAT credit on countervailing duty in the
Incoming Excise Invoices transaction.
Exchange rate type - Key representing a type of exchange rate in the
system.
- You enter the exchange rate type to store different exchange rates.
Example - You can use the exchange rate type to define a buying
rate, selling rate, or average rate for translating foreign currency
amounts. You can use the average rate for the currency translation,
and the bank buying and selling rates for valuation of foreign
currency amounts.
Exchange rate type to be used for Export excise duty converts -
When you are creating an Excise invoice for export sales then the
exchange rate for duty calculation will be picked up using this
Exchange rate type.

5. Maintain Plant Settings - In this IMG activity, you maintain excise
information relating to your plants.
Plant Settings - In this activity, you maintain excise information
relating to your plants.
For 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.
Depot - Indicates that the plant in question is a depot. - Depots are
required to prepare register RG 23D, and follow different procedures
for goods receipt and invoice generation.
- Number of goods receipt per excise invoice.
- Multiple GR for one excise invoice, Single credit
- Multiple GR for one excise invoice, multiple credit
Maintain Excise Groups - In this IMG activity, you define your excise
groups. For each excise group, you can also control how various
excise invoice transactions will work.
Excise Groups - In this activity, you define excise groups. An excise
group allows you to maintain a separate set of excise registers and
excise accounts. The RG 23A, RG 23C and PLA serial numbers are
created for an excise group.
Recommendation - Under normal circumstances, excise authorities
require every business to maintain only one set of excise registers
and one set of accounts. But through exemption from the authorities,
multiple books can be maintained.

6. If your company has only one set of excise registers, then you need
to maintain only one excise group.
1. Create one excise group for each set of registers that you need to
keep.
2. Assign the excise groups to plants.
3. Maintain whether this Excise group is for a depot or not.
If you receive only one consignment for an Excise challan then you
can leave GR's per EI as blank. If you receive multiple GR's for a
given Excise challan and would like to avail multiple credit mark the
GRs per EI as 'Multiple GR's for one excise invoice, multiple credit'.
Alternatively if you want to availa the credit only after all the goods
receipts have been made mark it as ' Multiple GR for one excise
invoice, single credit'.
4. If you want to automatically create Excise invoice during Sales
cycle at the time of billing the tick the indicator 'Create EI'
5. During depot sales if you do not want to do RG23D selection and
posting separately and would like to complete RG23D selection in
one step mark the indicator 'RG23D Auto post'. This will post the
selected records into RG23D automatically. You cannot cancel the
selection later.
6. If the indicator 'Default GR qty' is marked system will default the
Excise challan quantity 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 for RG23D during receipt of excise invoice into depot.
8. 'Automatic posting' when ticked will post the Excise invoice other
movements automatically along with creation in single step.
9. 'Create Part1 for Block Stock' when marked will create a Part1
during the receipt of material into Blocked stock .
10. 'Create Part1 for STO' when marked will create a Part1 during the
receipt of material through inter plant transfers.
11. 'Create Part1 for consumption stock' when marked will create a
Part1 during the receipt of material into consumption stock. Excise
Group Governs which set of excise registers a business transaction
will be included in.

7. Following is the relation between excise group, plant and registration.
- In define excise groups in Customizing.
Then, in transactions involving excise duty, for example, when you
post a vendor's excise invoice, you specify which excise group you
are using. This information tells the 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 create different sets for each
excise group.
Indicates that the plant in question is a depot. - Depots are required
to prepare register RG 23D, and follow different procedures for
goods receipt and invoice generation.
- GR Per Excise Invoice
- Multiple GR for one excise invoice , Multiple credit
- Multiple GR for one excise invoice , Single Credit
Create Excise Invoice Automatically - Instructs the system to
automatically create a Sales and Distribution (SD) excise invoice
immediately you create a commercial invoice or a pro forma invoice.
The excise invoice is created in the background. - If 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), by choosing Excise Group - Series
Group Determination.
RG23D Sales Creation and posting option - RG23D Automatic
Option if selected will create Depot excise invoice by posting the
selection of excise invoices in single step. If this is not selected then
you need to separately do RG23D selection
followed by PGI and then RG23D verification and posting. If you
need automatic posting of RG23D selection then the Post Goods
Issue should have been completed before running RG23D selection.
Default excise qty in GR - If this indicator is ticked then while doing
Goods Receipt using 'MB01' system will default the excise invoice
quantity on to the Goods receipt document.
Folio number for depo Posting - If this indicator is marked then while
creating Excise invoice for other movements system automatically
does the Verify and Post. You need not separately Post the excise
invoice

8. Also we can set indicator for creation of part 1 for:
- Blocked stock
- Stock transport order
- Consignment stock
Maintain Series Group - In this IMG activity, you define the different
excise series groups within your company. Series groups allow you
to maintain multiple number ranges for the outgoing excise
documents. Based on excise regulations and exemptions from the
authorities you can maintain multiple number series for outgoing
documents. But each of these series has to be declared to the excise
authorities.
- 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 then you tick the 'No utilization' indicator.
- If the CENVAT has to be paid immediately and you need not wait
for the Fort nightly payment then mark the 'Immediate Utilization'
Iindicator. Example - You could define two series groups, group 001
for excise invoices, and group 002 for 57 F4 documents.
- No account postings for CENVAT in sales cycle
- No utilization Flag
If you do not need any CENVAT utilization for an excise invoice but
would like to just generate 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 Series group but there will not be any account postings or
Part2 postings.
Immediate Utilization of CENVAT - Specifies that when you create an
excise invoice, the system immediately pays the amount from
CENVAT and creates the Part II entry. Such invoices will not be listed
for fortnightly utilization.
If you have both fortnightly and immediate utilization for the same
excise group, the account determination within CIN IMG should point
to the ED interim account.
Account determination for immediate payment will be done exactly
the same as being done for fortnightly utilization program.

9. Maintain Excise Duty Indicators - In 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 Procedure
In this IMG activity, you specify which tax procedure you want to use
for determining excise duties and sales taxes on input materials in
India.
- If you use condition-based excise determination, use a copy of the
tax procedure TAXINN.
- If you use formula-based excise determination, use a copy of the
tax procedure TAXINJ.
This tax procedure also supports condition-based excise
determination, so that you can work with both concurrently.
We strongly recommend that new customers use condition-based
excise determination. Note that once you have started using a tax
procedure, you cannot switch to another one, otherwise you will not
be able to display old documents.
Maintain Excise Defaults - In this IMG activity, you define which tax
procedure and pricing condition types are used in calculating excise
taxes using formula-based excise determination.
If you use condition-based excise determination, fill out the CVD
cond. field and leave 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 tax processing.
- 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.

10. See also: SAP Library -> Logistics -> Country Versions -> Asia-
Pacific -> India -> Materials Management (MM) -> Condition-Based
Excise Determination and -> Formula-Based Excise Determination.
IMG > Logistics - General > Tax On Goods Movement > India >
Basic Settings > Determination of Excise Duty >
Condition-Based Excise Determination
When you enter a purchasing document, for example, a purchase
order, the R/3 System automatically calculates the applicable excise
duties using the condition technique.
Features : The standard system comes with two tax calculation
procedures. TAXINN is only supports condition-based excise
determination, whereas TAXINJ supports condition-based excise
determination and formula-based excise determination. Both tax
procedures contain condition types that cover all of the excise duties
and sales taxes applicable.
Since the exact rates of excise duty can vary on a large number of
factors, such as which vendor you purchase a material from, or which
chapter ID the vendor stocks the 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 duty at the rates you have entered in the condition
records.
Customizing : Make the settings in Customizing Basic -> India -> for
Logistics – General, by choosing Taxes on Goods Movements
Account -> Excise Duties Using Condition Technique and …->
Settings Determination.
These activities include one activity where you define a tax code for
condition-based excise determination.
Master Data - Create condition records for all excise duties that
apply, and enter the tax code for condition-based excise
determination in each.

11. Day-to-Day Activities - When you enter a purchase order or other
purchasing document, enter the tax code for condition-based excise
determination in each line item. The system then calculates the
excise duties using the condition records you have created.
When the ordered materials arrive, you post the goods receipt and
the excise invoice. The system posts the excise duty to the
appropriate accounts for deductible input taxes when you enter the
excise invoice.
Creating Condition Records for Excise Duty
1. In the command field, enter FV11 and choose .
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 record for. On the dialog box, Control Code means
quot;chapter ID.quot; So, for example, to create a condition record for a tax
that applies to a combination of 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 Determination - When you execute a
business transaction involving materials that are subject to excise
duty, the system automatically calculates the duty for you.
In order for the system to be able to determine which rate of excise
duty to apply, you must have maintained all the data on the Excise
Rate Maintenance screen, which you can Master Data®access from
the SAP Easy Access screen by choosing Indirect Taxes Excise Rate
Maintenance.

12. You maintain the following types of data:
- Plant master data
You assign each of your plants an excise duty indicator. You can use
the same indicator for all the plants with the same excise status from
a legal point of view, such as all those that are in an exempt zone.
See also the information about manufacturers that are only entitled to
deduct a certain portion of the duty (see Partial CENVAT Credit).
- Vendor master data
For each of your vendors with the same excise status from a legal
perspective, you define an excise duty indicator. You must also
specify the vendor type – for example, whether the vendor is a
manufacturer, a depot, or a first-stage dealer. You must also stipulate
if the vendor qualifies as a small-scale industry. For each
permutation of plant indicator and vendor indicator, you then create a
final excise duty indicator.
- Customer master data
Similarly, you assign the same excise duty indicator to each of your
customers that share the same legal excise status.
Again, for each permutation of plant indicator and customer indicator,
you then create a final excise duty indicator.
- Material master data
Each material is assigned a chapter ID.
- Excise tax rate
For every chapter ID and final excise duty indicator, you maintain the
rate of excise duty.
If your business only qualifies for partial CENVAT credit, you must
customize your system accordingly.

13. Let us consider an example to illustrate how the system determines
which rate of excise duty to apply to a material. Assume you are
posting a sale of ball bearings to a customer. The system
automatically determines the rate of excise duty as follows:
1. Looks up the customer master data to see what status you have
assigned the customer.
Let's assume you've assigned the customer status 3.
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 to see what the final excise duty indicator is for customer
status 3 and plant status 2: It is 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 of duty applies to chapter ID 1000.01 under
status 7.
Define Tax Code for Purchasing Documents - In this IMG activity,
you define a tax code for the purposes of calculating excise duty
when you enter purchasing documents. Only carry out this activity if
you use condition-based excise
determination.
- Create a new tax code, and set the tax code type to V (input tax).
Do not make any other settings for it.
- Assign Tax Code to Company Codes
In this IMG activity, assign the tax code for purchasing documents to
the company codes where it will be used.
Only carry out this activity if you use condition-based excise
determination.

14. Classify Condition Types - In 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 excise
determination method. The system uses this information when you
create a document from another one. For example, when you enter
an incoming excise invoice from a
purchase order, or when you create an outgoing excise invoice from
a sales order, the system determines the various excise duties in the
excise invoice using the information that you have entered here. In
addition, when you create a purchasing document, the system only
uses the condition 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.
The standard system comes with sample settings for the tax
calculation procedures and pricing procedures.
Use these settings as a basis for your own.
IMG > Logistics - General > Tax On Goods Movement > India >
Account Determination
Define G/L Accounts for Taxes - In this IMG activity, you specify
which G/L accounts you will use to record which taxes.
Requirements - You have set up G/L accounts for each of the
processing keys listed below.
- Assign 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)

15. Specify Excise Accounts per Excise Transaction - In this IMG activity,
you specify which excise accounts (for excise
duty and CENVAT) are to be posted to for the various transaction
types. Enter all the accounts that are affected by each transaction
type. If you use sub transaction types, enter the accounts for each
sub transaction type as well.
Transaction type UTLZ is used for determining accounts only while
posting excise JVs and also if the payment of excise duty has to be
done fortnightly. The fortnightly 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 for fortnightly payment.
Example:
- Excise TT DC ind Account name
- GRPO CR CENVAT clearing account
- GRPO CR RG 23 BED account
- GRPO DR CENVAT on hld account
Specify G/L Accounts per Excise Transaction - In 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 which G/L accounts to post to by looking at the:
- Excise group
- Company code
- Chart of accounts
Furthermore, if you want separate account determination settings
within an excise group, you can also use sub transaction types.
Requirements
You have already:
- Defined the G/L accounts
- Defined the excise groups
- Maintained the transaction accounts
Activities - For each excise group, assign the excise and CENVAT
accounts to G/L accounts. For most businesses, one set of accounts
will suffice for all transactions.
Note : you need not remit the CENVAT to the excise department
immediately, so maintain the credit account for transaction type
DLFC as an excise duty interim account. This will be set off when you
remit the duty. Config setting needed to be done in order to get the
Excise Details Screen in Material Master.

16. Even though this functionality is available in enterprise version, a
small configuration step has to be made in Screen Sequences for
Material Master.
Following document helps you to do this configuration.
- Material Master à Logistics General
1. Go to IMG Define Structure of Data Screen for each
Configuring the Material master Screen Sequence.
2. Select your screen sequence. Usually it would be 21. Select
the same and click on Data Screen in the left frame.
3. Once the data screens are exhibited, select data screen no.
15, ie. SSq. 21and Scrn 15, which is “Foreign Trade: Import
Data”. Select the same and click on Sub screens 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 sub screen and ensure that
the sub screen is blank.
5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 –
0001 and instead add SAPLJ1I_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 sub screen appears.