IntroductionIn one of the pervious articles, taxation procedure for Country version India was discussed in details. This was basically about the calculation of various types of taxes, including excise & custom duties, on sales/purchases and goods movements within India. In the standard SAP system there are two types of Tax Procedure for Country Version India. One is TAXINJ, that is formula based Excise and Sales tax calculation and the other one is TAXINN, which is condition based Technique.[edit]

Customizing for Tax Procedure TAXINJTAXINJ is being used in the Country Version India Add-On and requires to maintain additional data in the Excise Rate Maintenance transaction, J1ID. Each of the excise duties in the tax Procedure TAXINJ has its own condition types, and each condition type is assigned to a formula in the standard SAP. This formula instructs the system to calculate the excise duty using the data that have been maintained in the Excise Rate Maintenance transaction. Following is the step by step Configuration setting for Formula based Tax Calculation (TAXINJ). Under this configuration setting, Tax Jurisdiction code is not discussed for handling Excise Duty and Sales Taxes.[edit]

Master DataChapter ID Material & Chapter ID Combination Material Assessable Value CENVAT Determination [edit]

Excise StatusVendor Excise details Excise Indicator for Plant Excise Indicator for Plant & Vendor [edit]

Excise RateExcise Tax Rate Cess Rates Exceptional Material Excise Rate Quantity based AED and SED [edit]

Access SequenceAccess Sequences. Check Calculation ProcedureBasic Setting Tax on Sales / Purchases Financial Accounting Global SettingFinancial AccountingMenu Path: SPRO Standard Access Sequence for tax procedure is JTAX & MWST. So we can use these without any modification. But if there is any specific requirement from client we can create a new Access Sequence by copying and modifying the existing one to meet that requirement. Here, I will go with the standard one without any modification.[edit]

Condition TypeDefine Condition Types. Check Calculation ProcedureBasic Setting Tax on Sales / Purchases Financial Accounting Global SettingFinancial AccountingMenu Path: SPRO For formula bases Tax Calculations the MM tax conditions alone present in the Tax

procedure TAXINJ. Setting related to the SD procedure will be carried out only in SD Pricing Procedure and these setting will be totally independent of MM settings. So the tax condition types shown below are related to MM only and these will form the tax procedure TAXINJ only.[edit]

MM Excise ConditionsMWVS Input tax JMO1 IN: A/P BED deductib JAO1 IN: A/P AED deductib JSO1 IN: A/P SED deductib JMO2 IN: A/P BED non dedu JAO2 IN:A/P AED nondeduct JSO2 IN:A/P SED non deduc [edit]

LST/CST/VAT ConditionsJIP3 IN: A/P ST setoff JIP1 IN: A/P CST JIP2 IN: A/P LST [edit]

Service Tax ConditionsJSER IN: Service tax JSVD IN: Service tax debit [edit]

Tax Procedure SettingDefine Procedures. Check Calculation ProcedureBasic Setting Tax on Sales / Purchases Financial Accounting Global SettingFinancial AccountingMenu Path: SPRO Tax calculation procedures TAXINJ containing the necessary specifications with grouping of above mentioned tax condition types, for the purpose of calculation and posting of taxes on sales/purchases have already been defined in the standard SAP system for Country Version India. The latest changes of Educational CESS and VAT needs to be added to the TAXINJ procedure.[edit]

Account Key SettingCheck and Change Setting for Tax Processing. Check Calculation ProcedureBasic Setting Tax on Sales / Purchases Financial Accounting Global SettingFinancial AccountingMenu Path: SPRO[edit]

Account KeyThe following are the standard account keys used in the TAXINJ procedure. In addition to these, if required, new account keys can also be created by copying the existing one and same needs to be assigned to the procedure.ESA - Output acquisitn tax ESE - Input acquisitn tax JI1 - India Basic Excise JI2 - India Addl Excise JI3 - India Special Excise NVV - Non-d.input tax dist VS5 - Input Tax PST Gross [edit]

Assignment of Tax Procedure to CountryAssign Country to Calculation Procedure. Check Calculation ProcedureBasic Setting Tax on Sales / Purchases Financial Accounting Global SettingFinancial

AccountingMenu Path: SPRO Country IN - Tax procedure TAXINJ[edit]

Formula-based excise determinationIf formula-based excise determination is used, define the tax procedure TAXINJ and all pricing condition types used for calculating excise taxes, here it is always recommended that these values (purchasing and sales condition types) should be updated in consultation with SD consultants. Following needs to be specify under this activity: [edit]

Basic excise duty, Additional excise duty, Special excise duty, Cess. Conditions in the sales order that are used for excise rates. Countervailing duty condition type used for import purchase orders.

Defining Tax CodesDefine Tax Codes for Purchasing Documents Condition Based Excise Determination Determination of Excise Duty Basic Settings India Tax on Goods Movements Logistics General Menu Path: Materials Management[edit]

Assignment of Tax Code to Company CodesAssign Tax Code to Company Codes Condition-Based Excise Determination Determination of Excise Duty Basic Settings India Tax on Goods Movements Logistics General Menu Path: Materials Management On completion of above settings in SPRO the MM part of tax calculation procedure TAXINJ is complete.Disclaimer: IT Wiki is a service that allows content to be created and edited by anyone in the community. Content posted to this site is not reviewed for correctness and is not supported by Toolbox.com or any of its partners. If you feel a wiki article is inappropriate, you can either correct it by clicking "Edit" above or click here to notify Toolbox.com.

SAP SD CIN ConfigurationBy Shesagiri What is CIN? CIN Means Country India VersionIn Indian Taxing procedure, Excise Duty plays a vital role in manufacturing cenarios. 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 -> FormulaBased 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 Dataaccess 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. Lets 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 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.

CIN Knowledge-Question and AnswerThese Questions and Answers may help you to understand the day to day problem in Business, who were running SAP. As consultant it is useful to know about these common questions and their Answers 1) How do I Configure the System for Partial Credit functionality?(80:20 0r 95:05 for Cenvatable: Inventorisable). A relevant tax code should be configured with the required ratios for deductible and nondeductible ax components (JMO1 and JMO2 respectively) The partial credit indicator at the excise registration ID level should also be marked.

2) What are the settings involved to run the stock transport orders through the GRPO route? A : For a receiving plant a customer has to be created. - For an issuing plant a customer and a vendor has to be created and this vendor is to be linked to this customer. - Both the customers have to be assigned to the plant in the Stock Transport Order settings. (Transaction: OMGN).

3) How do I change the debit account that is proposed in Excise JVs?

In the company settings of CIN IMG select the indicator "Debit Account Overwrite" for the required company code.

4)What is the difference between the 'Depot' indicator at the plant and the same at the excise group level?. At excise group level: It indicates that for the particular combination of the excise group and the plant, the plant will function as a depot. At plant level: Irrespective of the plant being attached to any excise group, the plant attached to all the excise groups will function as a depot. The setting at the plant level takes precedence over that at the excise group level.

5) Can I change the non-cenvatable condition types that have been delivered? No. The delivered non-cenvatable condition types (e.g. JMO2 etc.) are to be used as they are

6) Can the excise popup be made to appear for any movement type? The excise popup will appear for all those movement types that have been delivered for CIN, provided these movement types are maintained in the CIN IMG settings. Note: The users can create a copy of these standard movement types (delivered for CIN), and maintain the entry in the CIN IMG for the popup.

7) Can I segregate different actions and reference documents combinations for incoming excise invoice transaction (J1IEX)? Yes. The user has two broad options for the combinations of the actions and reference documents for the incoming excise invoice transaction. Define processing modes per transaction: Here the user can decide the processing modes associated with the the transactions. For e.g. for J1IEX capture, post, change, display and cancel options are available, while for J1IEX_C only capture and display options are available. The user has the freedom to change the delivered settings. Define Reference Documents Per Transaction:

Here the user can decide the combination of the processing modes with the reference documents. For e.g. for the processing mode "Capture Excise Invoice" one can choose reference documents such as PO, GR, STO etc.The user has the freedom to change the delivered settings.

8) Where will I change the input/output attribute of a field of the incoming excise invoice transaction? A: In CIN IMG, under the Incoming Excise Invoices node the user can change the attributes of certain fields.The user cannot add any additional fields other than the delivered ones.

9) In the subcontracting attributes (CIN IMG) what is the difference between Movement Type Group Issues and Movement Type Group Receipts? A: Movement types that issue material from the plant to the subcontractor subcontractor are grouped under the movement type group issues. Similarly, the movement types that consume the materials when the processed goods are received into a plant are grouped under the movement type group receipts.

10) In the Subcontracting Challan, How should I maintain number ranges for each series group? A: Subcontracting Challan number ranges should not overlap between series group. For e.g it should NOT be as follows:

Series Group S1 : 000010000 to 000050000 Series Group S2 : 000020000 to 000050000

11) Which are the Number range objects for which number ranges needs to be maintained? A: Internal Document - J_1IINTNUM RG23A Part1 and Part2 for all excise groups - J_1IRG23A1 & J_1IRG23A2 RG23C Part1 and Part2 for all excise groups - J_1IRG23C1 & J_1IRG23C2 PLA Part2 for all excise groups - J_1IPLA2

RG1 for all excise groups - J_1IRG1 RG23D Folio Number Generation - J_1IRG23D Outgoing Excise Invoices against all series groups - J_1IEXCLOC & J_1IEXCEXP Depot Excise invoice number - J_1IDEPINV Dispatch Register Serial number - J_1IINTPR2 Subcontracting Challan against all series group - J_1I57FC

12. How is the "GRs per EI setting" (at the excise group level in CIN IMG)decided? A: CIN provide three options to avail CENVAT credit based on this setting. i)Multiple GR against single excise invoice, single credit: The excise invoice can refer to multiple goods receipts, but the credit can be availed for the entire excise invoice in one shot.

ii)Multiple GR against single excise invoice, multiple credit:The excise invoice can refer to multiple goods receipts, and the credit can be availed individually for each goods receipt. If none of the options mentioned above are chosen: iii)The excise invoice can refer to a single goods receipt, and the credit ,credit can be availed for the entire excise invoice in one shot.The user can decide the option based on the business requirement in the implementation phase. It is advised that the setting is not changed subsequently.

13) Can I have multiple accounts for the same process? A: Yes. This is possible by using the option of subtransaction ,subtransaction type in association with the transaction type.

14) What will the transaction type do?

A: CIN uses transaction type as a way of differentiating between the various excise related processes. They are: GRPO - Goods receipt for purchase order in Plant. Also used in Depot for a PO and material document EWPO - Excise invoice without purchase order 57FC - Subcontracting Challan 57NR - Reversal and Recredit for Subcontracting Challan CAPE- Capital Goods credit accounts OTHR- Excise Invoice for Other Movements DLFC- Factory Sale and Stock Transfer via SD CEIV- Cancellation of Generated Excise Invoice DIEX- Differential Excise Invoice Credit MRDY- Excise Duty reversal without reference MRRD- Excise Duty reversal if material used for non-production MRWO- Excise Duty Reversal for Write off Cases TR6C - PLA account adjustment through TR6 Challan UTLZ- is used for determining the accounts when a JV is posted with an option of fortnightly payment The Transaction type that are not used : 57CM, 57GR, CAGI, CAGR, GRTR

15) Can I have my own transaction types? A: No. Various transaction types are used by CIN and are predelivered

16) Does the system determine the modvat clearing account during invoice verification? A: Yes, provided the purchase order has deductible excise duty.

17)What is EWPO? When do you use it?

A: EWPO stands for excise invoice without purchase order. For e.g. Excise invoice of free samples are captured in the system using EWPO.

18)What is the functionality of the rejection code/reason code? A: For some reasons if the user wants to withhold the availement of CENVAT credit, he can do so by posting the excise invoice with a reason code. This reason code will post the credit amount to an ONHOLD account. The user can later post this ONHOLD amount to the CENVAT accounts. There is an indicator associated with the reason code in CIN IMG, which will decide the posting of the credit amount to ONHOLD.Note: It is recommended that separate GL accounts for ON-HOLD account for transaction type GRPO and CAPE. Account at GRPO will be used by Rejection code and the one at CAPE will be used for subsequent credit of Capital Goods. During Excise Invoice cancellation, reason code can be used.

19) After the transaction J1IEX has been executed, what is the significance of the status popup? A: The status popup is a way to give information to the user of the various excise entries that happen during the course of running the transaction. For e.g. the status Part1 number: N.A. means that no part1 was generated during the course of running the transactions.

20) What does the 'Restore Defaults' checkbox on the Duty Values item tab strip of J1IEX do? A: Restore defaults option restores the material type, duty rates, quantities, duty values for that line item to the original values that were defaulted the time when the transaction is run.

21) I always get the Item ok in J1IEX transaction as selected, how do I avoid that in case I don't need the Item ok selected by default? A: Mark the User Parameter ID 'J4X' with 'X' for a User ID.

22) Can you explain the different rows of duties on the Duty Values item tab strip of J1IEX?

A: Credit availed: Excise duty whose credit has been availed.Inventorized duty: It is the excise duty for which credit has not been availed but has been added / will be added to the material cost. edit due: Excise duty whose credit has not been availed because the goods have not been received and entered in the RG23 Part1 register. Credit Available: Excise duty whose credit has not been availed, but the goods have been received and entered in the RG23 Part1 register.ST: Sales Tax for the line item.

23) What does the 'Calculate excise duty based on rates' checkbox on the Duty rates item tab strip of J1IEX do? A: The user has the option of changing the duty rates for the line item sin the excise invoice. If the user wishes to change the duty values based on the changes in the duty rates he needs to select the 'Calculate excise duty based on rates' checkbox.

24)What is a single step credit availment process? A: The process of capturing the excise invoice and availing credit of excise duty in a single step is now possible if the excise is captured with reference to a goods receipt for a purchase order. This is possible even inthe EWPO cycle.

25) When are the 'Simulate CENVAT Credit' and the 'Post CENVAT' buttons active? A: These buttons will be active if the entry has been posted in the RG23 Part1 register for the GRPO cycle and there is credit available to be availed. These buttons will always be active during the EWPO cycle. The user should have the necessary authorization to post an excise invoice.

26) While capturing an excise invoice for EWPO (without reference to any material document), how does one enter multiple lines?

A: For the first line item the user needs to enter the details of the the line item such as the material number, plant, chapter ID, duty rate, ,quantity etc. followed by pressing ENTER. To enter a new line item the user needs to press the 'Next Item' Button.

27) When price control 5 is set for a purchase order, how is excise duty computed?

A: The base value of the material is the value on the date on which the vendor's excise invoice is created. The duty is computed on this base value.

28)How are the accounts determined when capital goods are procured? A: When cenvat credit for the capital goods are availed for the first 50%,, the credit accounts are picked from GRPO transaction type and debit accounts from the CAPE. During Subsequent credit availment both credit and debit entries are picked from CAPE.

29) What needs to be done if the Excise Invoice quantity is not equal to GR quantity? A: Excise Invoice Quantity is less than GR quantity: System will default warning message and this can be configured in CIN IMG as required. Apart from that the Part1 entry will be done only for the open quanity in the excise invoice. And the remaining will not appear in the excise registers.Since nothing can be done about it, ensure you do another GR for the difference quanitity with no excise entry. Or in the case excise invoice for this difference will be dispatched by the vendor later, you can create a separate GR and just create a Part1 entry.Excise Invoice Quantity is greater than GR quantity: Credit will be allowed only for GR quantity. To take credit for remaining check the Multiple GR for an excise invoice setting at excise group.

30) What should be my accounting entry in procurement? A: For Domestic Procurement of Raw Material During GR

Material Stock Dr. GR/IR clearing Cr.

During Excise Invoice Credit Cenvat Account Dr. Cenvat Clearing Cr. During Invoice Verification Cenvat Clearing Dr.

GR/IR Clearing Dr. Vendor Payable Cr. For Domestic proceurement of Capital Goods During Excise Invoice Credit Cenvat Account Dr. (50%) Cenvat On-hold Dr. (50%) Cenvat Clearing Cr. Subsequent of Capital Goods Cenvat Account Dr. (50%) Cenvat On-hold Cr. (50%) For Import Procurement of Raw Material During Customs Duty Clearing invoice Custom Clearing Dr. Custom Payable Cr During Excise Invoice Credit Cenvat Account Dr. Custom Clearing Cr. During Invoice Verification GR/IR Clearing Dr. Vendor Payable Cr.

31) What should be my accounting entry when the goods are issued through MM and excise invoice is created (J1IS & J1IV)? A: During Excise Invoice Posting Cenvat Suspense Account Dr. Cenvat payable Cr.

Subcontracting:32) How is the recursive BoM scenario (the parent and the child material being the same) handled in subcontracting? A: The movement type group for receipts should hold the 543-movement type only instead of the 101-movement type.

33) For which of the material documents will I run the Quantity Reconciliation for the subcontracting challan? A: Quantity reconciliation is run for the material documents whose movement types that automatically generate the consumption line, for e.g. movement 105, 101. This transaction is also run for reversals of issue movements, for e.g. movement type 542.

34) How do I delete challans assigned to the Goods Receipts document? A: Goto transaction for Quantity Reconciliation (J1IFQ). Use Menu path Quantity Reconcile>Delete assignment

35) What should be my accounting entry in subcontracting Reversal /Recredit? A: For Subcontracting Challan Reversal Cenvat Reversal Dr. Cenvat Account Cr. For Subcontracting Challan Recredit Cenvat Account Dr. Cenvat Reversal Cr.

36) I cannot create independent 541 document and subcontracting challan without creation of reference purchase order. A: Purchase order creation is mandatory in subcontracting process. The following process should be followed 1. create subcontracting order.(Creating an order is mandatory) 2. Transfer posting with respect to subcontracting order. 3. Create a subcontracting challan with respect to Transfer posting. 4. Do a goods receipt with respect to subcontracting order. 5. Reconciliation with respect to goods receipt. 6. Close the challan.

37. What is the process to be followed for subcontracting challan creation with movement type 101 "O"? A: The steps recommended by SAP for 101 O is as follows: 1. Assign 101 O as relevant for subcontracting with mvmt type 0001 (copy 541 movement type) 2. Please remove 101 from 0002 mvmt type group. This is not necessary & will create inconsistency when the material is reconciled. 3. Create challan with respect to the 101 O movement type 4. Create a subcontracting PO once again for the output material with the component supplied to the subcontracting vendor through steps 1 & 2. 5. DO NOT DO ANY TRANSFER POSTING 6. During GR for the PO created in step 4 use the challan created in step 3 to assign & then reconcile.