What is sap cin

What is CIN?
CIN Means Country India Version
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
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
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.
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.
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.
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.
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.
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
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.
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.
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.
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 "chapter ID." 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.
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.
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.
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)
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.
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.

Step by Step MM-CIN Training Documentation
By G.V.SHIVAKKUMAR, Tata Consultancy Services
Topics covered:
1. Excise Transactions
2. Capital Goods Purchase
3. Returnable/ Non Returnable Gate Pass
4. Import Purchase Cycle
5. Vendor Return & Excise Reversal
1 COUNTRY INDIA VERSION
1.1 Procedure for Claiming CENVAT for Raw Materials
1.1.1 Create the Purchase Order (ME21N)
Follow standard PO creation process
1.1.2 Gate Entry (/cvs/gnt01)
Enter the PO No in the Field, and then all the items against the Po will be shown. Enter the Relevant
Quantity, Enter the LR no, Vehicle No, Vendor Excise No, In the Text Enter the Transporter Name.
Security ID Select from the Drop Down Menu.

1.1.3Goods Receipt to Unrestricted (Movement type: 101)
Menu Path: Logistics  Materials Management  Inventory management Goods movement goods
receipt  for purchase order Purchase order no. Known (MIGO)
a. Enter the PO number and click on Execute button as shown below.

b. Enter the Gate Entry No It will show the gate Entry Quantity of the in the Quantity tab in fieldQuantity
in Unit of entry.
c. Enter receiving Storage Location in Where tab. Here check the stock type in which material is going
to receive. If some text needs to be added regarding the goods receipt enter it in Textfield. If it
subjected to batch Management then enter the Vendor Batch No as well as In-house batch no. If you
want to Split the Quantity then Click on, Then Enter the Batch, Quantity etc. After doing all these
thing go to Classification Enter all the Parameter.

d. Click on Item OK Checkbox – at this point of time system will show relevant information of excise for
which Excise Invoice tab will appear in the Header screen as shown below, select Only Capture
Excise Invoice on this tab and put the Vendor Excise Invoice no check the Excise group.
e. Check the Excise Details related to the received material in Excise Item tab in Detail Data screen as
shown below.

Press
Post button to save the Goods receipt, system will generate the Goods receipt Document. System
will automatically update the Part I register as soon as the GR is made.
1.1.2 Post the Captured Vendor’s Excise Invoice
Go to CIN transaction
Menu Path: User menu  Indirect taxes  Procurement  Excise invoice  Incoming Excise
invoice  Individual Processing  Capture/Display (J1IEX)
a. Select Post Excise Invoice and Vendor in windows above the Header.
b. Enter Goods Receipt Document number generated in STEP 2 and press ENTER or Click on
Execute button.
c. Following screen will appear as shown below.

d. Enter Vendor Excise Invoice Number, Excise Invoice Date, Excise group – (or any other appropriate
excise group).
e. If material had directly came from different vendor, Enter vendor code in Ship from field
inmiscellaneous tab.
f. If Excise Invoice is faulty and still want to take the credit for the excise invoice, enter the rejection
code.

g. Check the Material Chapter Heading, Material type in Item tab in Detail Data screen.
h. Check the Quantity in Quantity tab
i. Check the Duty rate in Duty rate tab.
j. Check duty values and Tax amount for the material in Duty value tab.

Click here to continue...
...Previous
k. Check the Part I entries, which are created immediately after the GR in Part I tab.

Tick the Item OK check box and Press button to check the entries.
After Check Click on Simulate Button to check the G/L Entries.

Press save button to post the entry, Excise Invoice will be captured and following screen for
information will be displayed.

1.1.3 Display Excise Invoice
invoice Individual Processing  Change/Display/Post/Cancel (J1IEX)
Select Display and Vendor Excise Invoice in windows above the Header. Here you can display both the
Part I and Part II entries in one document only. Check the Excise registers in which entry is made.

1.2 Procedure for claiming CENVAT for Capital Items
1.2.1 Create the Purchase Order for Capital goods
Follow standard PO creation process and note the following things
In the Account assignment category enter “F”.

The system will prompt to put the Order no as well as G/L account no in the account assignment tab.
All the other details like VAT or CST you will have to maintain. Maintain the Tax code.
Save the purchase order.

1.2.2 Goods Receipt to Unrestricted (Movement type: 101)
a. Enter the PO number, Vendors Delivery Challan Number
b. Press Enter – at this point of time system will copy all the relevant information from PO and a Excise
Invoice tab will appear in the Header screen as shown below, select capture Excise Invoice on this
tab and check the Excise group.
c. Enter the Received Quantity in the Quantity tab in field Quantity & Unit of entry.
Follow above procedure for claiming modvat for raw material.
d. Enter receiving Storage Location in Where tab. Here check the stock type in which material is going to
receive. If some text needs to be added regarding the goods receipt enter it in Text field.
Follow above procedure for claiming modvat for raw material.
e. Check the Excise Details related to the received material in Excise Item tab in Detail Data screen as
shown above.

f. Che
ck the Item OK check box and press Check button in tool bar to check the entries
g. Press Post button to save the Goods receipt, system will generate the Goods receipt
Document. System will automatically update the Part I register as soon as the GR is made.
l. Press Enter, following screen will appear
1.2.3 Post the Captured Vendor’s Excise Invoice
Go to CIN transaction
invoice Individual Processing  Capture/Display (j1iex)
a. Select Post the Excise Invoice and Goods Receipt in windows above the Header.
b. Enter Vendor Excise no generated above.
If material had directly came from different vendor, Enter vendor code in Ship from field
inmiscellaneous tab.
a. If Excise Invoice is faulty and still want to take the credit for the excise invoice, enter the rejection
code.
b. Check the Material Chapter Heading, Material type in Item tab in Detail Data screen.
c. Check the Quantity in Quantity tab
d. Check the Duty rate in Duty rate tab.
e. Check duty values and Tax amount for the material in Duty value tab.

f. Check the Part I entries, which are created immediately after the GR in Part I tab.
h. Tick the Item OK check box and Press button to check the entries.
i. Press save button to post the entry, Excise Invoice will be captured and following screen for
information will be displayed.
tep by Step MM-CIN Training Documentation
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1.2.4Display Excise Invoice
invoice  Individual Processing  Change/Display/Post/Cancel
Select Display and Vendor Excise Invoice in windows above the Header. Here you can display both the
Part I and Part II entries in one document only. Check the Excise registers in which entry is made.

1.4 Sub-contracting without Payment of Excise Duty
When you issue materials to a subcontractor, you need to keep track of what materials you have issued
and when they have to be returned by.
The reason for this close monitoring has to do with India’s tax law. Under excise law 57AC, when you
send materials to a subcontractor for processing, you are not required to pay any excise duty, even
though the materials have left your premises. However, if the materials have not been returned to you
within a given length of time specified by the law (in 2000, 180 days), you will have to reverse any excise
credit that you posted when you purchased the materials. In the case of materials that you have
manufactured in-house, you will have to post credit entries to the extent of the CENVAT rate of the
assessable value of the materials.
1.4.1 Create Sub-Contracting Purchase order with Reference of Purchase Requisition
To create a subcontract order, proceed as follows:
1. Purchase Requisition will create automatically through Maintenance Order (IW31)
2. Purchase Requisition will have the reference of Maintenance Order.
3. Create Purchase Order with reference of Purchase Requisition (ME21N)
4. Release the Purchase Order (ME28)

4. Check and Save the Purchase Order.
1.4.2 Create Gate Pass (Returnable/ Non Returnable) for the materials sent out for Fabrication/ Servicing/
Irradiation, etc…
1. Enter Transaction code ZRGP on comm.-and field
2. Select Create from Pull down list, Issue and Purchase Order from another pull down list.

3. Enter the subcontracting purchase order number
4. Enter all the details in the header
5. After posting Gate Pass, to take Print Out, Choose Display  Issue  Gate Pass in ZRGPonly,
here put Gate Pass No. & press Enter then choose Edit  Print, Here You can see Print Preview
& then take print out.
1.4.3 Post Goods Receipt (MIGO) or Service Entry Sheet (ML81N)
Enter the Purchase Order number & Create Service Entry Sheet as per the Method suggested in User
Manual of Services.
1.4.4 Reconcile Gate Pass
1. Enter the Transaction code ZRPP on command field
Enter the following data:
1.4.5 Gate Pass Reports
You use this report to get a list of Gate Pass (subcontracting challans). Depending on what selection
criteria you enter, you can use it for finding out:
Enter Transaction code ZRGP on Command Field
a) Which challans are still with the subcontractor and are due back the following week
b) Which challans you can make a re credit for
c) Quantity issued to Vendor
d) Quantity Received from Vendor

1.4.6 Change Gate Pass
Enter the Transaction Code ZRGP on Command Field
Enter the challan number select
The challan is displayed.
1.4.7Display Gate Pass
Enter the Transaction Code ZRGP on Command Field
Enter the challan number select
The challan is displayed.
SUBCONTRACTING SCENERIO (SLITTING PURPOSE)
Crate a PO putting Item Category L. Put the Material which will come from the Vendor Site.
In the Component put the material, which you are providing to the Vendor.

Save the PO. Note the PO no.
Then Goto MB1B Transaction Click on to Purchase Order. Put the Purchase Order. Then Click on Adopt
Details.

Put The Batch No here, which you are going to provide to the Vendor. Then save it. Note Down the
Material Document NO (490000000684)
If it is Excisable
then Create a Subcontracting Challan (J1IF01). In Subcontracting challan creation put the Material
Document which is created during the MB1B code(490000000684).

Enter the Following thing.
If the Material Assessable Value isn’t maintained then maintain it on J1ID.

Then Post the Document.
...Previous
After Doing all these thing Repeat the Step for creating a Returnable Gate Pass, which has been already
described. Then Perform the Gate Entry as Mentioned above. Do the GR in MIGO (T code). Put the
Purchase order no.

Enter the Quantity, Batch no for the Incoming as well as Consumed Material.

After doing all these thing Enter the vendor invoice No. Save the document. Material document will be
generated. Note it down.
Reconciliation of Subcontracting Challan (J1IFQ)
Enter the Material Document which was created during GR (5000000274)

1.5 Procedure for Claiming CVD benefit for Imported Material.
1.5.1 Create Purchase order for imports

Create a purchase order for the materials that you want to order using the standard procedure as
mentioned in above documentation but when you fill out the item information.
Conditions tab
Select the countervailing duty (CVD) condition .
a. In the Rate field, enter the Rate of CVD that will be levied on the material when it arrives at
customs.

b. In the Vendor field, enter the vendor master record that you have created for the customs office.
To do this, select the CVD condition, which is marked by arrow, and then press button in the
conditions tab.
Enter the custom vendor number in the vendor field.

The vendor ships the goods to you.
When the goods arrive in India, they go through customs. The customs officers issue a bill of entry for the
goods, which is in effect an invoice for the CVD on the goods. Once they have inspected the goods, they
send them on to you.
1.5.2 Entering invoices for Bill of Entry (MIRO)
The goods arrive at your plant, together with the bill of entry. In order to record the bill of entry in the
system
The excise clerk enters an invoice for the bill of entry.
To enter the invoice for bill of entry follow standard invoice verification procedure but make sure you
observe following
Header Data
• Basic data tab
o In the Amount field, enter the amount of countervailing duty (CVD) stated on the bill of
entry in rupees. Also enter the amount of other custom duties if any.
o Do not enter any other taxes.

• Details tab
o Assuming you specified in the purchase order that the CVD was to be paid to the
customs office, the system shows the customs office as the vendor. If not, enter the
customs office’s vendor master record in the Inv. party (Invoicing party) field.
Line
Items
On the PO reference tab, enter data as follows:
Enter the number of the purchase order related to this delivery.
If you only created one purchase order for the goods, enter the purchase order number and
selectplanned delivery costs.
If you sent more than one purchase order to the vendor and it sent you all of the ordered materials
together in one shipment:
i. Choose .
ii. Enter all of the purchase order numbers in the table.
iii. Select planned delivery costs.

iv. Select Deliveries and deselect Returns.
v. Choose Adopt.
In both cases, the system displays the line items in the line item overview
For each line item:
In the Amount field, enter the amount of CVD on the item (if you have more than one item, you
may have to work the amount out manually).
In the Quantity field, enter the quantity of goods on the invoice.
Enter a zero-rated tax code.

Choose Simulate.
A dialog box appears with a list of the postings that will be made to Financial Accounting (FI).
Choose Post.
Note down the document number (CUSTOM Invoice number)
Perform The Gate Entry Process As per above Mentioned
1.5.3 Capturing Excise invoice (Bill of Entry) – (J1IEX)
Menu path: India Localisation menu (J1ILN) ® Procurement ® Excise Invoice ® Incoming Excise
Invoice ® Individual Processing ® Capture/Display.
In the top line:
Select Capture Excise Invoice
Select Purchase Order.
Enter the purchase order related to the bill of entry.
Choose
A dialog box appears.
3. Enter the number of the invoice that you entered for the bill of entry and choose

If you need to enter any other purchase orders, enter the number in the top line as for step 3.
Note that this time; you do not need to enter the invoice number.
Enter other data as required.
Note that the countervailing duty is displayed in the basic excise duty fields.
Enter the bill of entry number and date in the excise invoice number and Doc date field respectively.
Capture The Excise Invoice By Entering the Vendor Excise Invoice no at the time of GR
Post Cenvat (J1iEX) By Entering the Invoice no

After doing it, do the Simulation

After Simulation, the system posts the CENVAT (CVD Amount) and creates a corresponding entry in Part
II or the appropriate excise register.
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1.6 Creation of Excise Registers – (J1I5)
You follow this procedure to create the excise registers.
Three steps are to be followed for creation and printing of the excise
registers
1.6.1 Updating of Registers (RG23 A).
The updating 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.
1.6.1.1 Receipt updating of Registers (RG23A)
Menu Path: India Localisation menu (J1ILN)  Indirect Taxes -> Registers ->Excise Tax -> Update RG
23A/C Issues and RG 1.
On the selection screen, you specify
• Which documents you want to cover:
o Enter general organizational details in the Company details group box.
o Enter details about the documents that you want to include in the register, in
theDocument header and Document details group boxes.
Select movement type 101 and storage location.
Also select appropriate classification type (RMA) in case of receipt from manufacture.

Select register RG23 A, in the Registers group box
Select

First select entries & click on Simulate icon.
The signal becomes
Then put tick in checkbox and select for updating the register.
Register is updated and the screen looks as given below.
1.6.2 Data Extraction – J2I5
Menu path: India localization menu  Indirect taxes  Registers  Excise Tax  Extract (J2I5)

On the selection screen enter the excise group, start date (of the month) and end date (of the month) and
select the registers for which the data extraction is required.
Select
Following screen appears
1.6.3 Register printout – J2I6
You use this report to print out your excise registers.

Menu path: India localisation menu  indirect taxes  Registers  Excise Tax  Print utility program
(J2I6)
On the selection screen select the registers which are to be printed.
Select
On the selection screen select the excise group, start date (of the month) and end date (of the month).
Select
Select suitable printer and print the register.
1.7 Procedure for creating Excise Invoice for vendor returns
1.7.1 Create Return Delivery Documents through MIGO
Menu Path: Logistics  Materials Management  Inventory Management  Goods
Movement MIGO-Goods Movement (MIGO)
Indicates the business transaction that you want to enter in the system and give the Original GRN
Document number

Enter the Quantity to be return on Quantity Tab
Enter the Reason for movement on where Tab and movement type is 122 for Return Delivery to vendor

Select the Goods Issue Indicator IPD
In Excise Invoice tab Header Level, only Part I Entry will be maintained.
Check and Post the Document

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1.7.3 Create and Post Excise Invoice for vendor with ref of Return Delivery
Documents
Menu path: India localisation menu  Indirect taxes  Sales/Outbound Movements  Excise
Invoice  For Other Movements  Excise Invoice for Other Movements (J1IS)
Here Click on Create Icon first to create Outgoing Excise Invoice
Enter the Reference document number, Reference document type, Document year, and Series group,
Excise group and Vendor number.
For the material the Net Assessable Value, Base Value and all Excise duties will pick automatically from
Vendor’s Excise Invoice captured & posted already at the time of GRN.
Press Enter, you will get next screen as below. Click on “Create text” icon to maintain following details
1. LR No.
2. Vehicle No.

Here select each option to maintain the desired data as following & click on “Details” icon.
Here maintain desired data as per your requirement & save the text

Same way maintain data for remaining parts & come back also & save the excise invoice.
After saving you will get following result. Note down the Excise Invoice No.
To see the documents already posted, go to Display Mode

Here Enter Internal Doc. Generated in background for the Excise Invoice created.
Here click on accounting tab to see the Accounting Entries generated.
1.7.4 Print out of Excise Invoice (J1IV)

Menu path: India localisation menu  Indirect taxes  Sales/Outbound Movements  Excise
Invoice  For Other Movements  Post and Print (J1IV)
Enter the Series group, Output type JEXC (Standard) and Excise Transaction Type is OTHR and
Execute
Select the Excise invoice number to get Print.
Click Print Icon to get the Print out or click display icon to see the Print Preview.

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