India SAP CIN Customization Overview

India SAP CoE, Slide 1
SD2018 - SD CIN (Country Version India)
v1.0
SD CIN (Country India Version)

SD CIN (Country Version India)
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Purpose
CIN as the term denotes means Country Version India. It comprises of
functionalities designed for the laws and business practices pertaining
to the country, over and above the generic SAP system functionalities.
It contains India Specific functions, mainly related to Financials and
Logistics. The main areas are as follows:
– Excise duty and the central value-added tax system (CENVAT)
The tax levied on the difference the output and the input value.
This is also referred as MODVAT. Manufacturer can setoff the
excise duty paid on their inputs materials against their output duty.
– Withholding tax (also known as tax deducted at source)
– Sales tax
– Maintenance and printing of statutory excise registers

Use
Country Version India comes ready configured with all the settings,
Sales processing CIN covers the following Indian statutory requirements.
1. Calculation of Excise duty based on Material and Chapter ID combination
2. Calculation of Excise bases on concessional forms
3. Calculation of Output Tax based on Interstate Transactions
4. Maintenance and printing of Excise / Sales Tax details of customer on Invoices
5. Usage of Pre-printed Invoice Numbers
6. Excise Invoice Number should start with No.1 for every government fiscal year in Depot
7. Maintenance of RG23D register in Depots
8. Reproduction of all Excise details on depot Invoices with respect to source document
9. Maintaining separate Folio number for all incoming material in Depot
10. Maintain Entry number for each Folio for outgoing material in Depot
11. Levy of service tax on all services rendered from Factory / Depot
12. Payment of Cess on certain category of Material if applicable
13. Maintenance of excise rules.
The customer and vendor masters have been enhanced to store taxation details
specifically for India.
It provides predefined sample pricing procedures, including all taxes, and
settings for automatic account determination to the appropriate Excise Accounts .

Challenges
1. Tax structure for same material varies as state changes
2. Excise rate is different for different products
3. Printouts / forms need to develop as per laws

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Most of the country-specific functions for India relate to Financials and Logistics to
meet Statutory requirements such as The main areas are as follows:
Financial Accounting
• The country template for India comes with its own chart of accounts, CAIN. It contains
all accounts common to most businesses in India. It also takes into account the
requirements of Schedule VI of the Companies Act 1956.
• The country template also contains settings for automatic accounting postings
• The country template for India comes with its own financial statement version, BAIN.
Material management
A business document, in India, that your vendor sends you when it delivers excisable
goods. It lists the goods and states how much excise duty applies on them. Your use the
excise invoice to claim back the excise that you have paid from the excise authorities.
Sales & distribution
Country Version India comes with four pricing procedures as follows: 1) JINFAC (Sales
from manufacturing plants) 2) JINEXP (Export sales) 3) JINDEP (Sales from depots) 4)
JINSTK (Stock transfers)

Excise Duty
The system covers all types of excise duty, all of which need to be calculated and
reported separately:
1. Basic excise duty (BED)
2. Special excise duty (SED)
3. Additional excise duty (AED)
4. National contingent calamity duty (NCCD)
5. Cess
The system of excise duties is complex, and differs from the generic functions for taxes on
sales and purchases in a number of ways:
 The rate of duty on a single material can vary according to which chapter ID it is listed under.
You cannot offset all excise duty on inputs against outputs.
 Depots cannot offset any input duties at all. Manufacturing plants can only offset input duties
if they can show that the input materials are used to produce output materials.
 You have to record all excise duty (inputs and outputs) in excise registers.
 Your company may only be entitled to offset a portion of the duty on inputs against duty on
outputs.
 Companies that qualify as small-scale industries can levy excise duty on outputs at reduced
rates, so if you purchase materials from these companies, you must calculate a different rate
of excise duty.

Sales Tax
This is a tax levied on the sale of a product. It is applied on the gross price of goods,
inclusive of excise duty.
There are two types of sales tax.
1) Interstate sales (for example, between Karnataka and Tamil Nadu) are subject to
central sales tax (CST). The tax rate is the same throughout the country. Intrastate
sales,
2) On the other hand, are subject to local sales tax (LST), which differ from state to
state. SAP R/3 handles these using tax jurisdiction codes.
 A percentage of input LST can be deducted against output LST, depending on
what percentage of goods you have purchased in the state in question.
 The system calculates the sales taxes automatically, when you enter the tax
codes. A report is also available that tells you how much sales tax you have paid
and collected.

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CIN Customizing
Agenda
Global Settings
Accounting
Sales and Distribution
Reports

CIN Customizing
Agenda
Global Settings

Maintain Company Code
Menu
Path
IMG  Logistic - General  Tax on Goods Movements  India  Basic
Settings  Maintain Company Code Settings

Maintain Excise Registrations
Menu
Path
Settings  Maintain Excise Registrations
An entity in India that is entitled by law to produce any goods
liable to excise is assigned its own excise registration number.
The excise registration reports to the excise authorities.

Maintain Plant
Menu
Path
Settings  Maintain Plant Settings

Maintain Excise Groups
Menu
Path
Settings  Maintain Excise Groups
An unit within an excise registration in
India, which keeps its own set of excise
records. The excise group is purely an
internal organizational unit. Each excise
group keeps records of all the
transactions that have to be reported to
the excise authorities.
When the time comes to present these
records to the authorities, the excise
registration compiles the information
from all of its excise groups.

Maintain Series Groups
Series groups help in maintaining multiple number ranges for the outgoing excise
documents. Based on excise regulations and exemptions from the excise authorities,
multiple number series can be maintained for the outgoing documents, but each of
these series have to be declared to the excise authorities.
Menu
Path
Settings  Maintain Series Groups

Maintain Excise defaults
In this customizing settings, we define which tax procedure and pricing condition
types are used in calculating excise taxes
Menu
Path
Settings  Determination of Excise Duty  Maintain Excise Defaults

Tax Indicator Maintenance
Menu
Path
Settings  Maintain Excise Duty Indicators

CIN Customizing
Agenda
Accounting

Define G/L Account for Taxes
Menu
Path
IMG  Logistic - General  Tax on Goods Movements  India 
Account Determination  Define G/L Accounts for Taxes

Maintain Transaction Accounts
Menu
Path
Account Determination  Specify Excise Accounts per Excise
Transaction
In this settings, we define which excise accounts (for excise duty and CENVAT) are to
be posted for the various transaction types

Assign G/L Accounts
Menu
Path
Account Determination  Specify G/L Accounts per Excise Transaction
In this IMG activity, we assign the excise and CENVAT accounts to G/L accounts. This
is maintained for a combination of Excise Group, Company Code and Chart of
Accounts

Maintain Minimum Balances
Menu
Path
Business Transactions  Utilization  Maintain Minimum Balances for
Excise Accounts
In customization over here, we maintain minimum balances in company excise
accounts. When the balances in these accounts, during utilization falls below the
level, the system automatically utilizes funds in the PLA account.

CIN Customizing
Agenda
Sales and Distribution

Assign Excise Invoice …..
Menu
Path
Business Transactions  Outgoing Excise Invoices  Assign Billing
Types to Delivery Types
Invoices are created by referring to either Proforma Excise Invoices or Customer
Invoices. Hence in this IMG activity, you specify which Billing document types you
use as a reference for CENVAT utilization, and assign them to the appropriate
Delivery Types.

Utilization Determination
Menu
Path
Business Transactions  Utilization  Utilization Determination
In this IMG activity, We specify which CENVAT accounts are to be debited by the
Fortnight Utilization of CENVAT. Here it is specified as to which CENVAT account the
duty must be debited to by default.

Maintain Default……
Menu
Path
Business Transactions  Outgoing Excise Invoices  Maintain Default
Excise Groups and Series Groups
We can specify which excise group and series group, we want to appear by default
for different combinations of Sales Organization, Distribution Channel, Division and
Shipping Point. This activity is optional unless we require the system to
automatically create excise invoices when we create a customer invoice.

Tax Determination – Long Texts
Menu
Path
IMG  Logistic - General  Tax on Goods Movements  India  Tools
 Long Texts
This customization controls the different types of long texts that caompany want to
be able to maintain in various excise transactions.

Number Ranges
Menu
Path
IMG  Logistic - General  Tax on Goods Movements  India  Tools
 Number Ranges
Maintenance of number range for all CIN objects

CIN Customizing
Agenda
Reports

Maintain SAP Script Layout
Menu
Path
Business Transactions  Excise Registers  Specify SAPscript Forms
In this IMG activity, for each company code, we can specify which SAP Script forms
the system prints the excise registers with.

CIN Master Records
Agenda
Master Records

Excise Master
1. Maintain Chapter ID
All the materials that are required for manufacturing and subsequently those which are
manufactured are classified under the Central Excise Law into chapters. These
chapters are further subdivided into headings and subheadings, which together form
the chapter ID.
T Code : J1ID

2. Material Chapter ID combination
•If it is a input material then select the tab Raw material. If it is capital item then
select Assets.
If it is a in-house produced material then select RG1.
• Select GR –X ref to specify whether credit is allowed only for single goods
receipt or multiple goods receipt with single credit or multiple goods receipt with
multiple credits.
• In the declared column enter X if the material is declared to excise. Also enter
the date of declaration.
Excise Master

3. Material Assessable value
In this section we enter the assessable value of material which is used for the
purpose to determine how much excise you can credit to CENVAT account when
creating a subcontracting challan.
Enter the combination plant, material number, valid from , currency , Assessable
value.
Excise Master

4 CENVAT Determination
In this section you have to enter the input and output relationship of the material with
combination of plant, default indicator for Modvat. Companies are required to file with the
Excise authorities, a list containing the excisable finished products manufactured and the
excisable input materials required for such production, to avail Modvat.
It is possible that an input material may be used in the production of more than one
finished product. However, if such a material is mainly used for the manufacture of a
particular finished product then the input material is identified to be the default material. The
default indicator is marked for such material.
Excise Master

5 Customer Excise details
In this section the Customer excise details are maintained.
The Customer number, his excise registration details, ECC no, Excise Range, Excise Division,
Excise Commissioner ate, CST no, LST no, Permanent account number, Excise Indicator for
Customer, SSI status (if he is a SSI vendor), Type of Customer and CENVAT (This is applicable for
SSI vendor only who has participated in the CENVAT scheme).
The Customer excise details appropriate excise indicator should be selected from the drop down
menu of tab. In the type of Customer you have to select appropriate tab i.e. manufacturer, or First
stage dealer, Exporter, etc.
Excise Master

6 Excise Indicator for Plant
Excise Master

7 Excise Indicator for Plant and Customer
In this section the combination of excise indicator of plant and excise indictor
will determine excise duty applicable
Excise Master

8 Excise tax rate
In this section you maintain the combination of chapter ID and final indicator
(combination of plant and vendor indicator), valid from date , valid to date and
percentage of excise duty
This indicator and chapter ID combination determines the excise duty for the material.
Excise Master

CIN Transactions
Agenda
Transactions

Creation of Excise Invoice for factory sale
Purpose
• This transaction is used for creating excise invoice with reference to a billing
document.
Prerequisites
• The excise invoice has to be created with reference to a billing document
• The billing document has to be released to FI
• The posting date of the billing document
Menu Path
• Transaction J1IIN: SAP India Localization Menu
• Indirect Taxes -> Sales/Outbound movements -> Excise Invoice -> Outgoing excise
create/change/display
Transaction Code
• J1IIN
SD CIN - TRANSACTIONS

Use transaction J1IIN – Create /Change/ Display Excise Invoice
Enter the billing document number and posting date and press Enter
Billing document
number
Click on From Billing to
create an Excise invoice
with reference to a billing
document
Posting Date

• Enter the excise group and series group
• Save the excise invoice
Excise group Series
Group
T Code J1IIN

Excise invoice Cancellation
Purpose
• Cancellation of outgoing Excise invoice.
Prerequisites
• Excise Document number
• Excise series group
• Document year
Transaction Code
• J1IH

Execute J1IH – Cancel Excise Invoice
Enter Excise invoice number, Document year and series group
Enter document number,
Document year and
Excise series group

Following screen will appear, click on to enter
Following screen will appear, click on to confirm the G/L accounts to be posted.
Click on after checking the G/L accounts and save the document using CTRL + S

Depot excise invoice capture
Purpose
Capturing Mother Excise invoice at depot.
Prerequisites
• Material Document number
• Depot Excise group
• Factory Excise series group
• Document year
• Ship from
Transaction Code
J1IG

• Execute transaction J1IG to capture Mother Excise invoice
• Enter Depot Excise group and Material Document number and press Enter

• Following Screen will appear, Enter Ship From, Factory invoice number
and Factory Excise series group, tick on own factory

Click on details button to go into item details, check the quantity and
excise duty and save the invoice

Outgoing Depot excise invoice
Purpose
• Excise invoices for delivery at depot
Prerequisites
• Delivery number
• Depot Excise group
• Depot series group
Transaction Code
J1IJ

Execute J1IJ transaction to get following screen
Enter Delivery number, excise group and series group

Enter into the details screen as shown below
Click on the invoice button to select the mother invoices for reference

Select the mother invoice to be referenced and click on the
continue button

Check the referenced quantity and excise duty values and go back
to the overview screen

Save the depot excise invoice
Note down the Depot excise invoice number as displayed

Purpose
• This transaction is used for creating Letter of undertaking.
Prerequisites
• Letter of undertaking to be given to local excise range and the number for the
letter of undertaking to be obtained.
Menu Path
• Transaction J1ILN: SAP India Localization Menu
Indirect Taxes -> Master data -> Excise Invoice -> Excise Bond
Transaction Code
• J1IBN01 - Create
Process Name: Creation of Excise Letter of under taking for export factory sale
Creation of Excise Bond (Letter of under taking)

Use transaction J1IBN
Save the Excise Bond using Ctrl + S
Note down the Excise bond number
Enter
Plant code
Bond type: Letter of
undertaking
Number for LOU as
provided by excise range
Enter Bond Value
Enter type of dispatch
Enter Execution
date
Enter Surety as: No

Creation ARE document for export sales under Letter of under taking
Purpose
This transaction is used for creating ARE1 document with reference to an Excise
invoice document
Prerequisites
The ARE1 document to be generated with reference to excise invoice.
• Excise invoice has to be generated for sales under letter of undertaking.
Menu Path
Transaction J1ILN: SAP India Localization Menu
• Indirect Taxes -> Sales/Outbound Movements -> Exports Under Excise
Regulations -> Exports -> J1IA101 -
Create/Change/Post/Update/Cancel/Display/Reverse ARE-1

Use transaction J1IA101
Enter Dispatch date and time.
Enter Date of
dispatch
Enter time
of removal

Enter internal
Bond number
Enter Internal Bond number
Post the document by clicking on
Note down the ARE1 document number

Updation of ARE1 document
Purpose
• This transaction is used for updating and closing ARE1 document.
Prerequisites
• The ARE1 document to be posted in the system.
Menu Path
• Transaction J1ILN: SAP India Localization Menu
• Indirect Taxes -> Sales/Outbound Movements -> Exports Under Excise
Regulations -> Exports -> J1IA101 -
Create/Change/Post/Update/Cancel/Display/Reverse ARE-1
Transaction Code
• J1IA101 - Create/Change/Post/Update/Cancel/Display/Reverse ARE-1

• Use transaction J1IA101
• Enter Arrived at customs date,
• Sent to Excise dept,
• Countersigned by customs date,
• Export Confirmed date.
• Save the document using Ctrl + S to update the ARE1 document.
Update the relevant
data as shown

CIN Registers
Agenda
Register Entry/Update

Purpose
• Updating Registers for issues and receipts Goods
Prerequisites
• Company code
• Plant
• Excise group
• Posting date
• Receipt/Issue Excise classification codes
• Register type to be updated
Transaction Code
• J1I5
EXCISE REGISTERS - Update
Excise Registers maintained are:
RG1
RG23A
RG23C
PLA
RG23D

Creation of Excise Registers
You follow this procedure to create the excise registers.
Three steps are to be followed for creation and printing of the excise registers
Updation of Registers (RG1)
The updation of registers includes receipts and issues.
The classification of receipts and issues is done by selecting the appropriate
classification as per the table given below.
Now the stock in production location is moved in RG1 by transfer posting
(movement type 311)

• Enter Company code, Plant, Excise group, Posting date, Excise
classification for the receipt or issue.
Enter Company code,
Plant, Excise group
Enter Posting date for
Material document
Enter
Classification
Select Document
Posting date Button
Select Register

• A list of material documents relevant for Register updation are short listed
as shown below.
• Select the relevant Material document and click on to simulate.
• Click on to update the material document to Register.
• Will appear at the bottom of the screen.
Select the relevant
entry to be updated

Purpose
• Extracting entries updated to Register for issues and receipts of excisable
goods.
Prerequisites
• Excise group
• Start date
• End date
• Register Type
• Receipt/Issue Excise classification codes
Transaction Code
• J2I5
EXCISE REGISTERS - Extraction

Following screen will appear on executing transaction J2I5.
Enter Excise group, Start date, End date, and radio button for Register type.
Press F8 for extracting Register.
• Following screen will be displayed on
successful extraction of Register.

• Following screen will be displayed on successful extraction of Register.

SD CIN (Country version India)
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LetMe
Create of Master Data for Tax calculation
J1ID Excise rate maintenance
FV11 Maintain Tax Condition Records
VK11 Maintain Condition Record
J1IBN01 Create Excise Bond
FTXP Tax Code maintenance
VK11 Tax condition record maintenance

LetMe
Transactions
J1IEX Capture Incoming Excise Invoice
J1IIN Capture outgoing Excise invoice for Sales order
J1IJ Capture outgoing Excise invoice for Depot Sales
J1IS Capture outgoing Excise invoice for Other goods movement
J1IP Print Excise Invoice
J2IU Post Fortnightly Payment
J1IA101 Create / Change ARE1 for central processing
J1IA102 Create / Change ARE1 for Individual processing
J1IA301 Create / Change ARE3 for central processing
J1IA302 Create / Change ARE3 for Individual processing
J1I2 Sales Tax Register
J1I5 Update Excise Register

SD CIN (Country version India)
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HelpMe
CIN TABLES
All CIN Tables start with J_1I and J_2I. There are 129
tables. A few of them are:
• J_1IEXCHDR (Header data of Excise Documents)
• J_1IEXCDTL (Line item data of Excise Documents)
• J_1ICHPTER (Chapter ID master)
• J_1IEXGRPS (Excise Groups)
• J_2IEXTRCT (Data extract tables for Excise Registers)
• J_2IUTZDAT (Utilization Date)
•J_1IEXCREF

HelpMe
Additional Info
How to add new statutory printing documents for taxation
Smart forms need to be created for all the statutory forms exactly as per legal
requirements
Need to assign all the forms to required documents types by using output
determination.

India SAP CIN Customization Overview

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