CIN_detail_step_by_step.docx

CIN - Country India Version - Excise Duty Configuration Steps:
Brief Introduction:
Country India Version (CIN) is designed for use by business with operations in India. It contains a
localization implementation guide (IMG), and a country template to help us customize the system
according to local requirements. This is over and above the generic SAP system functionalities. Most of
the country-specific functions for India relate to Financials and Logistics, and center around taxes,
including:
o Excise duty and the central value-added tax system (CENVAT)
o Tax deducted at source (TDS)
o Sales tax
Activate Country Version India for Specific Fiscal Years:
In this activity, we specify for which fiscal years we want to activate Country Version India for the
accounting interface.
Menu Path: Financial Accounting (new) --> Financial Accounting Global Settings (New)--> Tax on
Sales/Purchases --> Basic Settings --> India --> Activate Country Version India for Specific Fiscal Years
Transaction Code: SPRO
Basic Settings:
We maintain the data relating to excise registrations. Excise registration is an entity in India that is
entitled by law to produce any goods liable to excise. Each entity is assigned its own excise registration
number. For example every factory that manufactures excisable goods is required to register
separately, so that a business with seven factories requires seven registrations. Each of the excise
registrations needs to be specified by a four-character code.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Basic Settings--> Maintain
Excise Registrations
Maintain company code settings:
Maintain the standard defaults for the company code.
company code settings
Maintain Plant Settings:
Maintain the excise information relating to the plants.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Basic Settings--> Maintain Plant
Settings

Maintain Excise Groups :
Here we define the excise groups. An excise group is a unit within an excise registration, in India,
which keeps its own set of excise records. Whereas the excise registration reports to the excise
authorities, the excise group is a purely internal organizational unit. Each excise group keeps records
of all 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. For each excise group, we can also control how various excise invoice transactions will Work.
Excise Groups
Maintain Series Groups :
Series groups allow maintaining multiple number ranges for the outgoing excise documents. Based on
excise regulations and exemptions from the authorities we can maintain multiple number series for
outgoing documents. But each of these series has to be declared to the excise authorities.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Basic Settings--> Maintain Series
Groups
Maintain Excise Duty Indicators:
Here we maintain the excise duty indicators. This determines the effective duty that would be used for
excise duty calculations. Generally, no change to the standard settings is required.
Excise Duty Indicators
Maintain Postal Addresses:
The addresses of various customs and excise organizations that the company deals with are maintained
here. These addresses are used in the ARE Documents functions. When an ARE-1 or ARE-3 document is
created, the address of the excise department and the customs department involved in the export
process are entered. The system then prints their names and addresses on the AREs.
A default local excise department for each excise group and a default customs department for each
series group can be defined.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Basic Settings --> Maintain
Postal Addresses
Maintain Sub Transaction types :

By default, the system records excise duties on the accounts that have been specified in the IMG
activity "Specify Excise Accounts per Excise Transaction". However, if we want to be able to record
some excise duties on other accounts we need to create a sub-transaction type in this IMG activity.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Basic Settings --> Maintain Sub
Transaction types
Select Tax Calculation Procedure:
For country India we need to specify which tax procedure we would use to determine excise duties and
sales taxes on input materials.
o For condition-based excise determination, use TAXINN or a copy of it
o For formula-based excise determination, use TAXINJ or a copy of it. This tax procedure also
supports condition-based excise determination, so that we can work with both concurrently.
It is recommend that for new implementations we use condition-based excise determination. Note that
once a tax procedure is already used and documents posted, it is difficult to switch to another one, as
the old documents will not be displayed.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Basic Settings --> Determination
of Excise Duty --> Select Tax Calculation Procedure
Maintain Excise Defaults:
Here we define which tax procedure and pricing condition types are used in calculating excise taxes
using formula-based excise determination (TAXINJ or a copy of it). If condition-based excise
determination is used (TAXINN or a copy of it), maintain the CVD condition field and leave all the
others blank.
If formula-based excise determination is used (TAXINJ or a copy of it), maintain the following:
o Tax procedure and the pricing conditions that are relevant for excise tax processing.
o The purchasing and sales conditions types used for basic excise duty, additional excise duty,
special excise duty, and Cess.
o The conditions in the sales order that are used for excise rates.
o The countervailing duty condition type used for import purchase orders.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Basic Settings--> Determination
of Excise Duty --> Maintain Excise Defaults
Define Tax codes for Purchasing Documents:
Maintain tax codes for the purposes of calculating excise duty when creating purchasing documents.
of Excise Duty --> Condition Based Excise Determination --> Define Tax codes for Purchasing Documents
Transaction Code: FTXP

Assign Tax code to company code:
Assign the tax code for purchasing documents to the company codes where it will be used. This is only
required if you condition-based excise determination is used.
of Excise Duty --> Condition Based Excise Determination --> Assign Tax code to company code
Classify condition types:
Here we specify which condition types are used for which sort of tax. Note that this only applies to
condition types that are used with the new excise determination method (TAXINN). The system uses
this information when a document is creating from another one. For example, when an incoming excise
invoice is created from a purchase order, or when an outgoing excise invoice is created from a sales
order, the system determines the various excise duties in the excise invoice using the information that
have been entered here. In addition, when a purchasing document is created, the system only uses the
condition types that are entered here.
o For taxes on purchases, use the condition types contained in the tax procedure
o For taxes on sales, use the condition types contained in the pricing procedures.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Basic Settings --> Determination
of Excise Duty --> Condition Based Excise Determination --> Classify condition types
Maintain Chapter Ids :
Maintain the chapter IDs and the corresponding descriptions as per the schedules published by the
Central Board of Excise and Customs.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Master Data -->Maintain
Chapter Ids
Assign Users to Material Master Screen sequence for Excise Duty:
Here we customize the material master data so that it shows the information relating to excise duty.
Country Version India comes with a screen sequence (IN) that shows the excise duty fields. We need to
assign it to each of the relevant users under User Screen Reference.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Master Data --> Assign Users to
Material Master Screen sequence for Excise Duty
Define Form Types:
Define which form types needs to be recorded in the system. This is used for form tracking for the form
types that are maintained.

Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Master Data --> Define Form
Types
Define GL accounts for taxes:
Here we specify which G/L accounts to use to record account postings for taxes. We have to set up G/L
accounts for each of the processing keys listed below. 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)
Account Determination:
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Account Determination -->
Define GL accounts for taxes
Transaction Code: OB40

Specify Excise Accounts per Excise transaction:
Here we specify which excise accounts (for excise duty and CENVAT) are to be posted to for the various
transaction types. Maintain all the accounts that are affected by each transaction type. If sub-
transaction types are used then, maintain 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.
Specify Excise Accounts per Excise transaction
Specify GL Accounts per Excise transaction:
We assign the excise and CENVAT accounts to G/L accounts in this step. While executing the various
transactions, the system determines which G/L accounts to post to by looking at the:
Excise group
Company code
Chart of accounts
If separate account determination settings within an excise group are required, we use sub transaction
types.
Specify GL Accounts per Excise transaction
Business Transactions --> Incoming Excise Invoices
Select Fields:
Specify which fields are required in the Incoming Excise Invoices transaction. The settings that are
made here apply for all versions of the transaction. For each field, we need to specify whether it is to
be an input field, a display field, and so on. It is also possible to highlight fields of particular
importance.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Business Transactions -->
Incoming Excise Invoices --> Select Fields
Transaction Code: J1IEX_SFAC

Define processing modes per transaction:
Specify which processing modes the user can use in the various Incoming Excise Invoice transactions.
This way, we can customize the transaction to what the end users have to do.
Standard settings - The system comes with three standard transactions relating to the Incoming Excise
Invoices function (those that are included in the role SAP_CIN). The processing modes available in these
transactions are as follows:
 J1IEX_C - This transaction is for excise clerks: users of this transaction can only capture and
display excise invoices.
 J1IEX_P - This transaction is for excise supervisors: they can change, display, cancel, and post
excise invoices.
 J1IEX - In this transaction, users can capture and post excise invoices, as well as displaying,
changing, and canceling them.
If the standard setting does not meet business requirements, adjust the standard settings or you can
create custom transactions. To do so, in Maintain Transaction, we create a new transaction by making
a copy of one of the standard transactions. Give the new transaction a transaction code. Enter data as
follows:
 Transaction code - The transaction code that is created.
 Processing mode - Specify which users of the transaction will do with the excise invoices.
 Active - Select this indicator to activate the setting.
Incoming Excise Invoices --> Define processing modes per transaction
Define reference documents per transaction:
For each combination of transaction and processing mode which reference documents the users to be
able to use. Activate each entry for it to work.
Incoming Excise Invoices --> Define reference documents per transaction
Maintain rejection codes :
Define the rejection codes that are to be used in the Incoming Excise Invoices transaction. For each
rejection code, enter a code and a description. It can also be specified whether the excise duty in the
invoice is to be posted to the CENVAT on hold account, instead of the CENVAT clearing account.
Incoming Excise Invoices --> Maintain rejection codes

Specify which movement types involve Excise Invoices:
Specify which movement types relating to goods receipts involve excise invoices. The system uses this
information during the goods receipt procedure. When a goods receipt is posted using one of the
movement types that is specified here, the system prompts to enter the excise invoice number.
Incoming Excise Invoices --> Specify which movement types involve Excise Invoices
Excise Invoice capture against delivery in the background:
Select the method of processing Excise Invoices for a particular combination of Plant and Vendor, in
the Supplier Self Service system (SRM-SUS). In the table J_1I_BCKEXCSUS, we can process Excise
Invoices using the following methods:
 Background Processing - Set the Create Excise Invoice Automatically indicator to yes for a
particular combination of Plant and Vendor. In this case, the SRM-SUS system automatically processes
the Excise Invoices in the background.
 Manual Processing - Set the Create Excise Invoice Automatically indicator to No for a particular
combination of Plant and Vendor. In this case, processing of Excise Invoice takes place manually. The
processing can be done using transaction J1IEX.
Incoming Excise Invoices --> Excise Invoice capture against delivery in the background
Business Transactions --> Outgoing Excise Invoices:
Outgoing Excise Invoices --> Pricing Procedure for Factory
Assign billing types to Delivery types:
Here we specify which billing document types you use as a reference for CENVAT utilization and assign
them to the appropriate delivery document types
Outgoing Excise Invoices --> Assign billing types to Delivery types
Maintain default excise group and series group:
Here we specify which excise group and series group is to appear in these fields by default. We can
make separate settings for different combinations of sales organization, distribution channel, division,
and shipping point.

Outgoing Excise Invoices --> Maintain default excise group and series group
Business Transactions --> Subcontracting
Subcontracting Attributes:
The subcontracting attributes help determine conditions for a combination of an excise group, a
transaction type, and a sub-transaction type. The conditions such as the number of excise items per
subcontracting challan, if the non-excisable materials have to be filtered or not when the
subcontracting challan is created, the movement type groups for issues and receipts and the hierarchy
of determining the excise base value are mentioned here.
Subcontracting --> Subcontracting Attributes
Maintain movement type groups:
Here we group movement types together to form movement type groups. Movement Type Groups will
be used to club the movement types based on their nature (issues or receipts).
Subcontracting --> Maintain movement type groups
Business Transactions --> Exports under Excise Regulations
Make settings for ARE-1 procedure:
The settings that control how the ARE documents transaction works for ARE-1s are maintained here.
These settings apply to exports under bond and exports under claim for rebate. The system can be
configured differently for different series groups.
Exports Under Excise regulation --> Exports --> Make settings for ARE-1 procedure.
Make settings for ARE-3 procedure:
The settings that control how the ARE documents transaction works for ARE-3s are maintained here.
These settings apply to deemed exports only. The system can be configured differently for different
series groups.

Exports Under Excise regulation --> Deemed Exports --> Make settings for ARE-3 procedure
Maintain License types:
The license types that are to be used are maintained here. License types are used when we maintain
the customers' deemed export licenses: Whenever a license is maintained, we need to specify which
type it is.
Exports Under Excise regulation --> Deemed Exports --> Maintain License types
Maintain output type
We define an output type for printing ARE-1s and ARE-3s from the ARE documents transaction. We
specify which program, FORM routine, and form is required to print the documents. The system comes
with an output type already configured, J1IB (Excise Bonding) for printing the ARE Documents
transaction.
Exports Under Excise regulation --> Printouts of ARE documents --> Maintain output type.
Transaction Code: M706
Specify printers:
We maintain a printer for each storage location. If there is a requirement for the system to print the
ARE documents immediately, we choose Print in the ARE documents transaction, and select
"Immediately".
Exports Under Excise regulation --> Printouts of ARE documents -->Specify printers
Transaction Code: OMJ3
Define processing modes per transaction:
Please refer to the section on "Incoming Excise Invoices ® Define processing modes per transaction",
(the underlying logic is the same). We specify which processing modes the user can use in the various
ARE document transactions. This way, we can customize the transaction to what the end users have to
do.
Standard settings - The system comes with eight standard transactions relating to the ARE document
function (those that are included in the role SAP_CIN). The processing modes available in these
transactions are as follows:
Processing mode ARE-1s ARE-3s
Create, change, update, cancel, display J1IA101 J1IA301
Create, change, display J1IA102 J1IA302

Update, display J1IA103 J1IA303
Cancel, display J1IA104 J1IA304
Separate transactions have been created to allow distinguishing between users who can only create
AREs and those who can update them, which requires more skill and knowledge of the CENVAT
processes.
Cancellation has been assigned a transaction of its own. Managers and administrators can use the
central transactions with authorization for all processing modes.
Exports Under Excise regulation --> Transaction configuration --> Define processing modes per
transaction
Define reference documents per transaction:
For each combination of transaction and processing mode which reference documents the users to be
able to use. Activate each entry for it to work.
Exports Under Excise regulation --> Transaction configuration --> Define reference documents per
transaction
Maintain rejection codes :
Define the rejection codes that are used in the ARE Documents function. For each rejection code,
maintain a code and a description. The third field need not be used.
Exports Under Excise regulation --> Transaction configuration --> Maintain rejection codes
Business Transactions --> Utilization
Utilization Determination:
In this customizing we specify which CENVAT accounts are to be debited by the Fortnight Utilization of
CENVAT report: When the report calculates how much excise duty to be remitted, it automatically
proposes which CENVAT accounts the duty should be debited to. We specify those defaults here. We
can
o Either debit all the excise duty to one account or
o Debit the excise duty to more than one account, in which case we specify which percentage is to
be debited to each account
Utilization --> Utilization Determination

Maintain Minimum Balance for Excise accounts:
Maintain minimum balances in the excise accounts. When the balance in these accounts during
utilization falls below this level, the system automatically utilizes funds in the PLA account.
Utilization --> Maintain Minimum Balance for Excise accounts
Business Transactions --> Excise register
Specify SAP script forms:
For each of the company codes, we specify which SAPscript forms the system prints the excise registers
with.
The layout description can be left blank or an appropriate description maybe filled in. Custom layouts
and names can be maintained here (preferably make a copy of the standard). If the output device and
number of copies are maintained it is automatically picked up for printing.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Business Transactions --> Excise
Register --> Specify SAP script forms
Tools
Long Texts:
Define the different types of long texts that is required for the various excise transactions. There is no
limit to the number of types of long texts. For each long text, we need to specify which transactions
the long texts are for.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Tools --> Long Texts
Number Ranges:
Maintain the number ranges for all CIN Number range objects using this transaction. The number range
number has to be '01' for all.
Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Tools --> Number Ranges
Transaction Code: J1I9
Message Control :
Here we specify whether a given message should appear as a warning message or an error message.
Maintain each message, specifying whether it should apply to one user or all users.

Menu Path: Logistics – General --> Tax on Goods Movement --> India --> Tools -->
Message Control
T

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