This document provides an overview of excise processes and registers in SAP for Indian excise law. It covers master data setup, procurement and sales processes involving excise duty, key excise registers like RG23A, RG23C and RG1, and reports for monthly returns and tracking unavailed CENVAT credits. Standard SAP transactions are demonstrated for activities like goods receipt, invoice capture, CENVAT posting, register updates and prints.

1. CIN Training 4.7

3. Indian Excise Law In India , Excise duty is a tax on the manufactured goods that is levied when goods leave the place of manufacturer . Manufacturer can set off the duty paid on input materials against their output duty , this procedure is known as central value added tax [CENVAT ] .

4. Indian Excise Law General ledger for excise duty updation will be assigned in CIN [ IMG ] under Accounting customization .When ever goods are received , Excise G/L will be updated for Modvat credit on inputs , RG 23 A part 1 for quantity and part 2 for Modvat credit amount . This register is used for material other then Capital Items . For Capital Items RG 23 C Part 1 and Part 2 will be Updated . For Depot receipts and sales RG 23 D Part 1 and Part 2 will be updated .

5. SAP Easy Access India Localization Menu Go To Address Bar and Type Transaction Code J1ILN You get the SAP India Localisation Menu

6. You get the Master Data Screen Create Chapter-id

7. Chapter ID: The number given to a material in the schedules of materials published by the government of India.The schedule lists all materials involved in manufacturing, input materials and output materials alike. It shows how much excise duty is levied on each material.Each material in the schedule is assigned its own identification code, called "chapter ID." The chapter ID are declared in Excise books are maintained here. We Create Chapter ID for Material Master . All Chapter ID where Cenvat determination Is Applicable should be Maintained First .

8. Create New Entries Save the Chapter ID

9. Maintain Material & Chapter-id Combination

10. Click on New Entries and enter the following details

14. Enter the Material no. in Input and Output Norms with Plant assignment along with Excise Declaration date.

16. Click on New Entries and update Vendor Excise details

17. Put Excise Indicator as : 01 – 100 % Taxable 09 - Nil Tax The System will determine this Vendor as subject to Excise

19. Similar to Vendor, Make Entries for your Customer also Make sure that you assign Appropriate Excise Indicator to your Customer.

21. Here we maintain Excise details for the Plant in a combination of CoCode--Plants—First Month of Excise Year—No. Range—Excise Indicator Excise Indictor for all Manufacturing Plants in a Company Code will be “1”

23. We Maintain the Final Excise Indicator for Vendor & Plant. Similarly maintain final excise indicator for Customer and Plant.

24. We Maintain Excise Tax rate Based on Material Chapter ID and Final Excise Indicator

26. This table will be maintained if there is any excise rate other then Excise rates based on Material Chapter ID and Final Excise Indicator. ( e.g.- S.S.I Vendors , Qty based excise amount ). In purchase order first Excise rates will be searched in exceptional table and then in table based on Final excise indicator and material chapter ID. The exceptional rates will be maintained with combination of Material number and vendor Code as follows.

31. Eg: PO Conditions System determine Excise Duty as per TAX Code & Master Data maintained J1ID.

32. Eg: Goods Receipt & Capture Excise Invoice Here we can Capture or Capture & Post Excise Invoice while doing Goods Receipt

34. Procurement of Capital Goods **Capital Goods in SAP – CIN is classified into Assets, Consumables & Tools** Procurement of Capital Goods is same as Procurement of Raw material. The Difference is: As per Excise Law you can take MODVAT 50% in the year of Purchase and 50% in the next year. SAP Supports this feature. What you do is you define All such materials as Capital Goods in Excise Master Data – J1ID as earlier discussed. So, When you Post your CENVAT via J1IEX, The System creates an Accounting Entries by posting 50% in MODVAT Accounts and 50% in MODVAT on HOLD Account.

40. Eg: Sales Order Condition The System Creates Excise Entries on the Combination of TAX Code and Excise Master Data Maintained in J1ID

41. Eg: Accounting Documents

43. Accounting Entries MODVAT Entry When making Goods Receipt for Non-Capital Goods ( Coded and Non-coded done through SAP MM Module). Excise duty –RG23A Part 2 – Input Dr To GR/IR Liability - Cenvat Cr CENVAT entry – Capital Goods Excise duty – RG23C – CAPITAL Dr (50%) Cenvat In abeyance – CAPITAL Dr (50%) To GR/IR Liability - Cenvat Cr Sale of Goods Only excise entry through India version Excise duty paid Dr To Excise duty – payable account Cr

44. Accounting Entries TR6 Payment Excise Duty – PLA Dr To XXXX – Intermediate TR6 A/c Cr If the payment is made on account of some expenditure such as Interest, Stationary and overtime account. XXXX- Expenditure A/c Dr To Excise Duty – PLA Cr This is manual JV. Monthly Adjustment When monthly or fortnightly payment is made to Excise dept . Excise Duty Payable a/c Dr. To Excise Duty – RG23A-Input Cr To Excise Duty – RG23C-CAPITAL Cr. To Excise Duty – PLA Cr. ( This is to be done with outgoing payment and clearing only).

45. Accounting Entries Return of Excise goods where payment is required to be done immediately. ( Purchase Return ) GR/IR Liability - Cenvat Dr To Excise Duty – RG23A-Input Cr } Any one a/c To Excise Duty – RG23C-CAPITAL Cr. } To Excise Duty – Payable Cr. } ( All LRN entries will be discussed separately). JV every year end to be passed in the subsequent year after the asset is put to use in the subsequent year. Excise Duty – RG23C- Capital Dr To Cenvat In abeyance – CAPITAL Cr.

46. Accounting Entries Manual JV for Cancellation RCIA GR/IR Liability – Cenvat Dr To Excise duty –RG23A Part 2 – Input Cr Sales Return Excise duty –RG23A Part 2 – Input Dr To Excise Duty Paid Cr

47. FORT NIGHT UTILISATION TRAN:J2IU TYPE THE COMPANY CODE,PLANT, EXCISE GROUP,PAYMENT DATEAND PERIOD FROM AND TO. SELECT PAY SED FM BED AND PRESS F8

48. TYPE THE AMOUNT FOR WHICH ACCOUNT TO BE PAID. AND PRESS ENTER. IF THERE IS NO ERROR SAVE The System Creates following Accounting Entries: Dr. Excise Duty Payable Account Cr. RG23A BEDA/c. Cr. PLA

50. TR6 CHALLAN ACCOUNTING TRAN: J1IH SELECT TR6 ICON IN THE POP SCREEN TYPE THE ACCOUNTING DOC NO FROM GLA/C CODE YEAR COMPANY CODE PLANT EX GRP AND SUB TRAN AND PRESS ENTER

51. FILL UP THE AMOUNT AS PER DEPOSITED, AND SAVE

53. RG1 Register Follow the Process: 1. Update Register via T. Code J1I5 2. Extract Register via T. Code J2I5 3. Print RG1 Register via T. Code J2I6

54. UPDATION OF RG1 REGISTER T.CODE: J1I5 RECEIPTS Enter : Posting date Movement Type for Receipts Classification as “ROP” Select RG1 and press f8

55. You get the List of Material Documents for Receipts Select all & Simulate. Traffic Lights goes Green. Again Select All and Click on “Create Register Entry”. System will update your RG1 Register. This is called Traffic Lights

56. RG1 Updation for Dispatches Repeat the Procedure : Enter Posting date Movement Type Classification as IDH Select RG1 and press f8

57. RG1 Updation for Dispatches If Traffic lights goes Green, it means system will update the material Documents but if it goes Red then it means that there is no stock Select all and click on “Create Register Entries”. The System updates the RG1 Register

58. REGISTER EXTRACTION T.CODE J2I5 Enter : Excise Group Start & End Date Select Register Execute

59. REGISTER PRINTING T.CODE: J2I6 Select Register and Execute

60. Report: Monthly Return Under Rule 57AE T.CODE:J2I9 Enter: Company code Excise Group Posting Date Select the Annexure for Transaction details & Abstract for Total Credits and Total Debits

61. CENVAT AVAILMENT OF CAPITAL GOODS IN NEXT FINANCIAL YEAR T.CODE: J2I8 ENTER: COMANY CODE PLANT EXCISE GROUP POSTING DATE

62. SELECT ALL AND SELECT TRANSFER OF CREDIT You get the List of Excise Invoices for which you have to avail CENVAT Select the Excise Invoice(s) and Click on Transfer Credit. System Creates an Accounting Entry: Dr. CENVAT on HOLD A/c. Cr. MODVAT Clearing A/c.

63. Report: CENVAT not availed T.CODE J1I7 Enter Document Year Excise Group Select No posting or Part1 posted, Part2 not posted Click on Execute or Press F8

64. SYSTEM DISPLAYS THE LIST OF EXCISE INVOICE FOR WHICH CENVAT IS NOT AVAIED

65. DAY TO DAY ACTIVITIES J1IEX_C – Capture Excise Invoice J1IEX_P – Post CENVAT J1IIN – Create an Outgoing Excise Invoice J1IF01 – Create Subcontracting Challan J1IS – Create an Excise Invoice for other Movements J1IH – CENVAT Adjustment J1I7 – CENVAT not availed J1IFQ – Subcontracting Challan reconciliation J1I5 – Finished Goods receipts & Issues updation J2I5 - Register Extraction J2I6 – Register Printing

66. MONTHLY ACTIVITIES J2IU - PLANING TR6 AMOUNT DEPOSIT BY SIMULATE J1IH - UPDATION OF TR6 CHALLAN AMOUNT IN PLA REGISTER J2IU - UTILIZE THE CENVAT AMOUNT J2I6 - PRINTOUT OF E1 MONTHLY RETURN

67. YEARLY ACTIVITIES On Union Budget Check any Tariff ED % changes update if any Close all Pending Excise Transaction J1IH – CENVAT Adjustment