CIN Configuration Tax on Sales/Purchases

1. Financial Accounting Global Settings: Basic Settings .....................................................................3 Check Calculation Procedure Assign Country to Calculation Procedure Check and Change Settings for Tax Processing Specify Structure for Tax Jurisdiction Code Define Tax Jurisdictions Indicator: Base amount for tax is net of discount? Change Message Control for Taxes Change Field Control for Tax Base Amount Activate Country Version India for Specific Fiscal Years Activate Business Transaction Events .........................................................4 ....................................................16 ...............................................17 ..................................................19 .............................................................20 ....................................................21 .......................................................22 ....................................................23 .................................23 ......................................................24 .........................................................25

Switch Off Tax Translation between Local and Document Currency

2. Financial Accounting Global Settings: Calculation........................................................................26 Define Tax Codes for Sales and Purchases (FTXP) Assign Company Code to Document Date for Tax Determination Specify Base Amount Change Foreign Currency Translation ........................................26 ....................................29 ....................................................31 ..................................................................30

Tax Codes for Tax-Exempt Sales........................................................................................................32 3. Financial Accounting Global Settings: Posting...............................................................................35 Define Tax Accounts (OB40) Define Account for Exchange Rate Difference Posting Assign Tax Codes for Non-Taxable Transactions Transfer Posting of Tax for Cross-Company Code Transactions .......................................................35 .............................................35 ................................................36 .....................................37

4. Logistics - General: Basic Settings....................................................................................................39 Maintain Excise Registrations Maintain Company Code Settings Maintain Plant Settings Maintain Excise Groups Maintain Series Groups ................................................................40 ...........................................................40 ....................................................................42 ................................................................43 ...............................................................44 1

Maintain Excise Duty Indicators Maintain Postal Addresses Select Tax Calculation Procedure Maintain Excise Defaults

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Condition-Based Excise Determination..............................................................................................52 5. Logistics - General: Master Data Maintain Chapter IDs Define Form Types .........................................................................................53 ................................................................53 ................................54 ..............................................................55

Assign Users to Material Master Screen Sequence for Excise Duty

6. Logistics - General: Account Determination....................................................................................56 Define G/L Accounts for Taxes (OB40) Specify Excise Accounts per Excise Transaction Specify G/L Accounts per Excise Transaction .............................................56 ................................................57 ..................................................58

7. Logistics - General: Business Transactions......................................................................................63 Incoming Excise Invoices (Post: Vendor Excise Invoice – J1IEX).....................................................63 Outgoing Excise Invoices....................................................................................................................67 Subcontracting....................................................................................................................................72 Exports Under Excise Regulations .................................75 Utilization............................................................................................................................................82 Excise Registers..................................................................................................................................85 Logistics - General: Tools.....................................................................................................................86 Long Texts Number Ranges Message Control ..........................................................................86 .....................................................................87 ....................................................................88

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Financial Accounting:
IMG -> Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchases

1. Financial Accounting Global Settings: Basic Settings

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Check Calculation Procedure In this activity, you can check and, if necessary, change existing procedures for tax calculation Standard settings: Calculation procedures containing the necessary specifications for the calculation and posting of taxes on sales/purchases have already been defined in the standard SAP system for certain countries. Every calculation procedure groups several tax types together into a condition type (for example, output tax or input tax) in the calculation procedure, and determines calculation rules for it. The calculation procedure determines for which amount the individual condition types are to be calculated. This can be the base amount (total of the expense items and the revenue items) or a subtotal. The entry in column FrmLvl, determines for which amount tax is calculated. Note: In this activity, the condition types for the check and the possible change provided in the standard system are also displayed. Here, for example, the condition calculation rule, or for which base amount the tax is calculated is determined (= condition type). Recommendation: If possible, do not change the condition types and calculation procedures provided in the standard system. Only check the standard condition types and calculation procedures regarding whether you can use them for your requirements. If necessary, make changes. Activities: If you cannot use the standard settings, change the condition types and calculation procedures delivered to meet your requirements. Access Sequences

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Condition Types
Condition Type BASB Base Amount JAED IN: A/R AED JAIP IN AED inventory % JAIQ IN AED inventory Qty JAO1 IN: A/P AED deductib JAO2 IN:A/P AED nondeduct JAOP IN: AED setoff % JAOQ IN: AED setoff Qty JAX1 IN: A/P AED setoff JAX2 IN: A/P AED inventor JC1E A/P GST Recoverable JC1I A/P PST distributed JC1S A/P recoverable JC1T A/P PST Self-assess JC1U A/P PST Self-assess JC2E A/P GST distributed JC2I A/P prov. (B+GST) JC2S A/P Recov. B + GST JC2T A/P PST Self-assess JC2U A/P assess B + GST JC3I A/P prov. (B+GST) JC3S A/P Recov. B + GST JC3T A/P PST Self-assess JC3U A/P assess B + GST JC4I A/P prov. (B+GST) JC4S A/P Recov. B + GST JC4U A/P assess B + GST JC5S A/P Recov. B + GST JC5U A/P assess B + GST JCES IN: A/R Cess JCS1 IN A/R CST out JCS2 IN A/R Sur out JGST A/P GST JIN1 IN: A/R CST JIN2 IN: AR LST JIN4 IN: A/R CST Surcharg JIN5 IN: AR LST Surcharg JIP1 IN:A/P CST JIP2 IN:A/P LST JIP3 IN: A/P ST setoff JIP4 IN: A/P surcharge JIPC IN C Sales tax inv. JIPL IN L Sales tax inv. JIPS IN Sales tax setoff JLS1 IN A/P LST out JLS2 IN A/P LST Surc out JMIP IN: BED inventory % JMIQ IN: BED inventory Qt JMO1 IN: A/P BED deductib Condition Class Discount or surcharge Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Calculation Type Fixed amount Percentage Percentage Quantity Percentage Percentage Percentage Quantity Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage Quantity Percentage

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JMO2 JMOD JMOP JMOQ JMX1 JMX2 JP1E JP1I JP1U JP2E JP2I JP2U JP3E JP3I JP3U JP4E JP4I JP4U JR1 JR2 JR3 JR4 JRC1 JRC2 JRC3 JRC4 JSED JSER JSIP JSIQ JSO1 JSO2 JSOP JSOQ JSVD JSX1 JSX2

IN: A/P BED non dedu IN: A/R BED IN: BED setoff % IN: BED setoff Qty IN: A/P BED setoff IN: A/P BED inventor A/P Sales Tax 1 Exp. A/P Sales Tax 1 Inv. A/P Sales Tax 1 Use A/P Sales Tax 2 Exp. A/P Sales Tax 2 Inv. A/P Sales Tax 2 Use A/P Sales Tax 3 Exp. A/P Sales Tax 3 Inv. A/P Sales Tax 3 Use A/P Sales Tax 4 Exp. A/P Sales Tax 4 Inv. A/P Sales Tax 4 Use A/R Sales Tax 1 A/R Sales Tax 2 A/R Sales Tax 3 A/R Sales Tax 4 A/R Sales GST A/R Sales PST A/R Sales PST B +PST A/R Sales PST B +PST IN: A/R SED IN: Service tax IN SED inventory % IN SED inventory Qty IN: A/P SED deductib IN:A/P SED non deduc IN: SED setoff % IN: SED setoff Qty IN:Service tax debit IN: A/P SED setoff IN: A/P SED inventor

Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes

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Tax Procedures

TAXINJ

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TAXINN

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Assign Country to Calculation Procedure In this activity, you enter the key for the calculation procedure, which determines the conditions, which are allowed per document and which defines the sequence of the conditions in the document for each country. Requirements: Each calculation procedure, which you enter, must contain the necessary specifications for calculating and posting the taxes on sales/purchases. For more information on this, read the chapter "Create calculation procedure". Activities: 1. Assign a procedure for tax calculation to every country with which your company has business dealings. 2. Make sure that the corresponding data for calculating taxes is stored for each calculation procedure, which you enter here.

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Check and Change Settings for Tax Processing In this activity you make the necessary specifications for posting taxes. In doing this you specify under a process key the following indicators:  Tax type: Output tax, input tax, additional taxes, or "not tax-relevant" can be specified as the tax type.  Non-deductibility of tax amounts: For this, tax amounts are marked as not deductible.  Posting indicator: Here you specify whether the tax amount is posted separately or distributed to expense or revenue items.  Tax not relevant to cash discount (Not discount relevant): This indicator is set only for Canada. If you select it, the system does not take into account the corresponding tax amount when determining the tax base. Standard settings: Process keys with the most important characteristics for tax amounts have already been set in the standard SAP system. Recommendation: Do not change the standard settings. Check whether you can use these process keys for your company, making changes only if necessary. Activities: If you cannot use the standard settings, use new process keys and enter them in your calculation procedure. Do not change the standard SAP process keys. Note: You must make enhancements to the standard settings if you want to specify a new account key in the "Create calculation procedure" activity. You must create and maintain this key beforehand in the "Settings for tax processing" activity.
Internal Processing Key ASB ESA ESE EX1 EX2 IU1 IU2 IU3 IU4 LUX MW1 MW2 MW3 MW4 MWS NAV NVV SET ST1 ST2 SUR TOT VS1 VS2 Sales equalizatn tax Output acquisitn tax Input acquisitn tax Excise duty on Input Excise Duty on Sales A/P use tax accrl 2 A/P Use Tax Accrl 3 A/P Use Tax Accrl 4 Additional tax Sales tax 1 Sales tax 2 Sales tax 3 Sales tax 4 Output tax Non-deduct.input tax Non-d.input tax dist SET-OFF A/R Local Sales Tax A/R Centrl Sales Tax Tax Type 3 1 2 2 1 1 1 1 1 3 1 1 1 1 1 2 2 2 1 1 1 1 2 2 Not Posting Deductible Indicator 1 2 2 2 x 2 2 2 2 2 2 2 2 2 2 2 x 2 x 3 2 2 2 2 2 x 2 x 2 Not discnt rel. x

Sales tax 1 Sales tax 2

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VS3 VS4 VS5 VST VTC VTI ZPT ZSR ZTX ZUG ZUS

Sales tax 3 Sales tax 4 Input tax A/P VAT INPUT CR-C/F A/P VAT INPUT CREDIT PURCHASE TAX PAYABLE

Invest.tax offs.item Investment tax

2 2 2 2 2 2 2 1 1 4 3

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2 2 2 2 2 2 2 2 2 3 2

Tax Type Description 1 Input Tax 2 Output Tax 3 Additional Tax 4 Not relevant to tax Posting Indicator Description 1 No posting required 2 Separate line item Distribute to relevant expense/revenue items 3

What is Internal processing key: The internal processing keys are used by the system to determine accounts or posting keys for line items which are created automatically. The processing keys are defined in the system and cannot be changed by the user. Tax not relevant to cash discount: If you select this checkbox, the tax portion, which is assigned to the corresponding transaction key, is not taken into account in determining the cash discount base. This option is only necessary for Canadian sales tax at the federal level (GST). This indicator is taken into account only if the tax base and cash discount base are calculated using the gross amount.

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Specify Structure for Tax Jurisdiction Code In this activity, you determine the structure of the tax jurisdiction code. This code is used for calculating taxes, which are defined below the federal level (for example, US taxes, Canadian taxes). The tax jurisdiction code can be subdivided into a maximum of four levels (for example, state/county/city/district). This way the tax rate is defined per level and the tax value is calculated individually per level. If an entry exists for a calculation procedure, then tax processing for this calculation procedure is switched over automatically to the tax jurisdiction code method. In this activity you can also set whether taxes should be calculated at the line item or the "tax code/tax jurisdiction code" level. Activities 1. Enter the name of a calculation procedure for which you need a tax jurisdiction code. You can call up the names of all the available procedures via the possible entries key. A calculation procedure is defined for every country in the SAP standard system. 2. Define the structure and the length of the structure elements of the tax jurisdiction codes in the fields defined for this purpose. 3. If taxes are to be calculated at line item level, select the line-by-line taxes indicator.

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Define Tax Jurisdictions In this activity, you specify the tax jurisdiction code per tax calculation procedure. The tax jurisdiction code consists of up to four parts depending on the tax jurisdiction code structure for the relevant calculation procedure: the state code, the county code, the city code, and a local code component. The system uses these component parts to determine the tax rate for each tax authority. Requirements: You must have already determined the allowed length of the tax jurisdiction code. See the activity Specify Structure for Tax Jurisdiction Code for more information. Activities 1. Enter the name of the calculation procedure, which requires a tax jurisdiction code. Press the F4 key to display a list of all the procedures defined in the standard system. 2. Enter the tax jurisdiction code for state, county, city and local code component. 3. Set the indicators for determining the tax base and cash discount base for the country code. Additional information: If tax is calculated using an external tax system, then an entry is only to be included at the upper level to determine the tax base or cash discount base at the "State" level. If such an entry does not exist for a state, the company code setting for the tax base/cash discount base is used.

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Indicator: Discount base amount is the net value Indicator with the effect that the sales tax is not contained in the base amount for discount calculation. Dependencies: The rule that determines how the base amount for discount calculation is to be determined is subject to the relevant country legislation. Either the company code table or the jurisdiction code table is used for control purposes. If tax is calculated using the jurisdiction code, the entries in the company code table are invalid. Control then takes place at the highest level of the definition of the jurisdiction code. This method of tax calculation is used in America, for example. Indicator: Base amount for tax is net of discount? Indicator that causes the base amount for the calculation of sales tax to be reduced by the discount share. Dependencies: The rule used to determine the base amount for the calculation of salestax is subject to the relevant country legislation. Either the company code table or the jurisdiction code table is used for control purposes. If the jurisdiction code is used for tax calculation, the entries in the company code table are not valid. Control then takes place at the highest level of the definition of the jurisdiction code. This method of tax calculation is used in America, for example. Note: If the tax base amount is net, the net value also has to be chosen as the discount base. Exception: If tax is calculated using the jurisdiction code (USA), the combination 'Net tax base' and 'Gross discount base' is also permitted, however, no tax adjustment is made for payment with a discount deduction. Example: In the following an example is given for each possible combination. In each case, the material value is 100.00, the possible discount percentage 3.00 %, and the tax percentage 10.00 %. 1) Gross tax base, Gross discount base Tax base 100.00 ==> Tax amount 10.00 Possible discount amount (3.00 % of 110.00) 3.30 Invoice amount 110.00 2) Gross tax base, Net discount base Tax base 100.00 ==> Tax amount 10.00 Possible discount amount (3.00 % of 100.00) 3.00 Invoice amount 110.00 3) Net tax base, Net discount base Tax base 97.00 ==> Tax amount 9.70 (Tax base = Value of goods - Possible discount = 100.00 - 3.00) Possible discount amount (3.00 % of 100.00) 3.00 Invoice amount 109.70 21

4) Extremely rare case (only permitted when jurisdiction code is used) Net tax base, Gross discount base The value of the goods is not 100 but 100.30 so that the figures in this case can be compared to those in the other cases. Tax bases 97.00 ==> Tax amount 9.70 (Net value of goods + Tax = 97.00 + 9.70 = 106.70) Since the discount base is gross, this value represents 97% of the gross invoice amount. Invoice amount = 110.00 Possible discount amount (3.00% of 110.00) 3.30

Change Message Control for Taxes In this activity you can set system messages to appear, as you require them. You can  determine whether a message is issued as a note in the dialog box or in the footer  change warnings into error messages  switch off warnings and error messages Different specifications are possible for the online mode and for the batch input sessions processed in the background. You can make the corresponding specifications for a client or, if required, also for the individual user. The relevant work areas for tax on sales/purchases are "FS" and "FF". Activities 1. Select the application area. 2. Select Edit -> New entries. 3. Enter the following data: - Message number By selecting the F4 key on the MsgNo field you can find out which messages are available. - User name If you enter a name here then the specifications only apply to this particular user. If you enter "blank", then the settings apply to all users within the client. - Message type You can find out the permitted message type by selecting F4 on the Online or BatchI fields. - Save your entries. The accompanying message text is inserted automatically.

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Change Field Control for Tax Base Amount In this activity you change the field control for the tax base amount. When you enter a document, you can set the field control for the tax amount so that it is possible to change manually the tax base amount that is automatically determined by the system. Requirements: Note that this function is exclusively defined for document entry with the FI Enjoy transactions (for example, transactions FB60, FB65, FB70, FB75) and the MM transaction MIRO. Therefore, you cannot use the function for the normal posting transactions (for example, transaction FB01). Activities: Check whether you really need to implement this function in your organization. Note that the changed tax base amount is also changed automatically in the document; the original base amount cannot be reconstructed. Further notes: Valid in Italy, the Czech Republic, Slovakia, and Argentina.

Switch Off Tax Translation between Local and Document Currency In this activity you can switch off the automatic translation of manually entered tax from local to document currency, and vice versa. Example: In the Czech Republic, it is a legal requirement that all tax amounts to be reported is rounded off. A document is entered in a foreign currency and translated into the local currency (Czech Koruna). If you were then to round off the tax amount in local currency, the document currency amount would also be adjusted accordingly automatically. To avoid this scenario, you can switch off the automatic conversion here. Requirements: Note that this function is exclusively defined for document entry with the FI Enjoy transactions (for example, transactions FB60, FB65, FB70, FB75) and the MM transaction MIRO. Therefore, you cannot use the function for the normal posting transactions (for example, transaction FB01).

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IMG -> Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchases -> Basic Settings -> India

Activate Country Version India for Specific Fiscal Years In this activity, you specify for which fiscal years you want to activate Country Version India for the accounting interface. Activities: In the table, maintain data as follows: o Comp. (Component): IND o To year: 2999 o Active: X

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Activate Business Transaction Events In this activity, you activate the function modules for Country Version India. Follow the instructions listed below, but if you need more information about what this function does, see the standard documentation. Activities 1. Choose Settings -> Identification -> SAP applications. 2. Make sure that there is an entry for the application CIN (Country Version India) and that it is active. 3. Go back to the SAP Business Framework: Business Transaction Events screen. 4. Choose Settings -> P/S function modules -> ... of an SAP appl. 5. Make sure that there are entries for the following: Event Ctr 00001030 IN 00001050 IN 00001110 IN 00001310 IN 00001320 IN 00001330 IN 00001410 IN 00001420 IN 00001430 IN Appl. CIN CIN CIN CIN CIN CIN CIN CIN CIN Function module J_1IEWT_CHALLAN_UPDATE J_1I_CIN_BTE_00001050 J_1ITDS_SAVE_CHANGES J_1IKUNNR_INTERFACE_00001310 J_1IKUNNR_SAVE_00001320 J_1IKUNNR_KEYTEXT_00001330 J_1IVENDOR_INTERFACE_00001410 J_1IVENDOR_SAVE_00001420 J_1IVENDOR_KEYTEXT_00001430

6. Go back to the SAP Business Framework: Business Transaction Events screen. 7. Choose Settings -> Process function modules -> ... of an SAP appl. 8. Make sure that the following enty exists: Process Ctr Appl. Function module 00001120 IN CIN J_1IEWT_DUEDATE

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2. Financial Accounting Global Settings: Calculation
Define Tax Codes for Sales and Purchases (FTXP) Tax Code is a two-digit code that represents the specifications used for calculating and displaying tax. Examples of the specifications defined under the tax code are: o Tax rate o Type of tax (input tax or output tax) o Calculation method (percentage included or percentage separate) You have to define a separate tax on sales/purchases code for each country in which one of your company codes is located. Each code contains one or more tax rates for the different tax types. If you have to report tax-exempt or non-taxable sales to the tax authorities, you need to define a tax rate with the value 0. Note: Do not delete or change any taxes on sales/purchases codes and their definitions as long as items with these codes exist in the system. Otherwise, the R/3 System displays the tax amounts with incorrect tax rates in the corresponding reports and determines incorrect amounts during a tax adjustment for payment transactions. Standard settings: SAP supplies a tax calculation procedure for each country. The procedure comprises a list of all common tax types with rules for tax calculation. In addition, example tax codes are defined for some countries. Activities 1. Check the standard tax codes for your country. Add further tax codes, if necessary. 2. Ensure that tax accounts are defined for the automatic posting of taxes. Notes on transporting tax codes: When tax codes are transported, only the tax rates of the tax codes are transported.. The transport of tax codes between systems or clients is carried out in two steps: 1. step: Export of tax codes from the source system or source client 2. step: Import of tax codes into the target system or target client Export 1. In Customizing for Financial Accounting Global Settings in the source system or client, select Tax on Sales/Purchases -> Calculation -> Define Tax Codes for Sales and Purchases. 2. Select Tax code -> Transport -> Export. 3. Assign the export to the corresponding transport order, and note the order number. 4. Select and save the tax codes to be transported. 5. Make sure that the tax codes selected are marked with the transport number in table T007V. To check the table, from the R/3 initial screen, select Tools -> ABAP Workbench -> Overview -> Data Browser. Enter the table name. The tax codes are in field MWSKZ and the tax jurisdiction codes are in fields TXJCD. 26

6. Carry out the transport into the target system. To do this, from the R/3 initial screen, select Tools -> ABAP Workbench -> Overview -> Workbench Organizer -> Environment -> Customizing Organizer. Import 1. Make sure that the tax codes to be transported are selected in table T007V in the target system or target client. 2. In Customizing for Financial Accounting Global Setting in the source system or client select Tax on Sales/Purchases -> Calculation -> Define Tax Codes for Sales and Purchases. 3. Create the tax codes that do not already exist in the target system. Create them complete, but without tax percentage rates. If you set internal systems in company codes in the USA or Canada, the corresponding tax jurisdiction codes should also exist. You can make the settings for these in Customizing for Financial Accounting Global Settings under Tax on Sales/Purchases -> Basic Settings -> Define Tax Jurisdiction Codes. 4. Select Tax code -> Transport -> Import. 5. Check the proposed values for the transport order and country. 6. Carry out the import.

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Assign Company Code to Document Date for Tax Determination In this activity you specify per company code the following data necessary for processing taxes with jurisdiction codes: whether the baseline date for determining the tax percentages should be the posting date (default date) or the document date. The system usually takes the posting date for this purpose. However, if you want the system to determine tax percentages on the basis of the document date, you must configure the system accordingly at this point. Standard settings: This specification is country-dependent in the standard company code. Activities: Determine for each company code whether the tax percentage should be calculated based on the document date.

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Specify Base Amount In this activity you determine whether cash discounts are deducted from the base amount used for calculating tax on sales/purchases for each company code. Standard settings The setting made for the standard company code depended on the respective country. Note The rules for determining the base amount to calculate taxes on sales/purchases depend on the respective national laws. Base amount determination is controlled by using either the company code table or the jurisdiction code table. Taxes in the US, for example, are calculated using jurisdiction codes. Activities If the cash discount amount should not be included in the base amount for tax calculation, select the TaxBaseNet indicator (tax basis is net value).

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Change Foreign Currency Translation The system usually translates tax amounts using the exchange rate resulting from the tax base amounts. For more information, see Specify base amount in the "Financial Accounting Global Settings" Implementation Guide. If you want to enter or have the system default an alternative exchange rate for currency translation during document entry, you can select this option here. In this activity you determine per company code whether a separate exchange rate can be entered for the translation of tax amounts when postings are made in foreign currency. You can select the following settings: o Enter tax rate manually o Exchange rate determined using posting date o Exchange rate determined using document date If you do not make any kind of setting here, the system translates the tax amounts using the exchange rate that results from the document and local currency base amounts belonging to the tax code. Activities Make the preparations per company code so that you can enter a separate exchange rate for the tax translation. Further notes If the exchange rate specified for the tax translation is different from the one in the document header, a difference might occur in local currency. You must therefore define an account for the exchange rate difference posting**. For more information, see "Define account for exchange rate difference posting". **"Define account for exchange rate difference posting" If you use a separate exchange rate for the translation of taxes for postings in foreign currency or want the exchange rate according to posting date and document date to be proposed, an exchange rate difference in local currency might result. You must therefore define an account for the exchange rate difference posting. Note: Your specifications depend on the chart of account Activities Enter the account for the exchange rate difference posting and define posting keys and rules for it. Further notes If you translate the tax amounts using the exchange rate predefined bythe tax base amounts, you need not make this setting.

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Tax Codes for Tax-Exempt Sales Define Reasons In this and the following IMG activity, you specify which tax codes you use for posting tax-exempt transactions, or transactions with zero-rated VAT. These settings are required by companies in Argentina and Poland only, and for the following purposes: o In Argentine tax reports, a reason must be assigned to all transactions with zero VAT. o In Poland, when a clerk issues a tax invoice, tax-exempt transactions must be marked with the letters zw. Activities For Argentina, define as many reason codes as you need in your reports. For Poland, define one reason code. If you want to use the standard SAPscript form for tax invoices, RVINVOICEPL, call the reason code Z: The SAPscript form treats all line items with reason code Z as tax-exempt.

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A company in Poland uses two tax codes for tax-exempt transactions, A9 and B9. IMG Activity Define Reasons Assign Reasons to Tax Codes What to Do Create a new entry, Z. Assign the reason Z to the tax codes A9 and B9.

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Assign Reasons to Tax Codes In this IMG activity, you assign tax exemption reasons to tax codes for tax-exempt or zero-rated transactions.

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3. Financial Accounting Global Settings: Posting
Define Tax Accounts (OB40) Discussed in detail later on. Define Account for Exchange Rate Difference Posting If you use a separate exchange rate for the translation of taxes for postings in foreign currency or want the exchange rate according to posting date and document date to be proposed, an exchange rate difference in local currency might result. You must therefore define an account for the exchange rate difference posting. Note Your specifications depend on the chart of account Activities Enter the account for the exchange rate difference posting and define posting keys and rules for it. Further notes If you translate the tax amounts using the exchange rate predefined by the tax base amounts, you need not make this setting.

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Assign Tax Codes for Non-Taxable Transactions In this activity you define an incoming and outgoing tax code for each company code, to be used for posting non-taxable transactions to tax-relevant accounts. Transactions posted like this are, for example; goods issue delivery, goods movement, goods receipt purchase order, goods receipt production order, order accounting. Activities Define tax codes for non-tax relevant transactions for each company code.

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Transfer Posting of Tax for Cross-Company Code Transactions In the case of cross-company code transactions, the whole tax amount is posted to and displayed in the first company code only. The tax arising in other company codes is ignored. However, in certain countries such as Japan and Denmark, the tax amounts have to be displayed separately in each company code. In this activity, the program creates a list of the respective tax amounts for which automatic transfer postings must later be made. When you start the program, choose the (first) company code for which the tax is to be posted. The number of documents to be included will depend on the fiscal year and the business periods (or posting date) you enter. The tax amounts are calculated according to the tax code or prorata. Activities Create a list of the tax amounts for which transfer postings must be made.

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Logistics - General:
IMG -> Logistics-General -> Tax on Goods Movement -> India

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4. Logistics - General: Basic Settings

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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.

Maintain Company Code Settings 40

In this IMG activity, you maintain the data relating to your company codes.

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Maintain Plant Settings
In this IMG activity, you maintain excise information relating to your plants.

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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 group is an unit within an excise registration, in India, which keeps its own set of excise records. Whereas the excise registration reports to the excise authorities, the excise group is a purely internal organizational unit. Each excise group keeps records of all transactions that have to be reported to the excise authorities. When the time comes to present these records to the authorities, the excise registration compiles the information from all of its excise groups.

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Maintain Series Groups 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. Activities 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 series 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' indicator. Example You could define two series groups, group 001 for excise invoices, and group 002 for 57 F4 documents.

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Maintain Excise Duty Indicators In this IMG activity, you maintain the excise duty indicators.

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Maintain Postal Addresses In this IMG activity, you maintain the addresses of various customs and excise organizations that your company deals with. You use these addresses in the ARE Documents functions. When you create an ARE-1 or ARE-3, you enter the address of the excise department and the customs department involved in the export process. The system then prints their names and addresses on the AREs. You can then define a default local excise department for each excise group and a default customs department for each series group. ARE-1 document is a form, in India, that companies have to fill out when they remove excisable goods from their manufacturing plants for export. The form exempts them from paying excise duty when they remove the goods from their premises. ARE-3 document is a form, in India, that allows companies to sell otherwise excisable goods from their premises without paying basic excise duty. The buyer of the goods must be in possession of a deemed export license. The ARE-3 states what goods are being removed and which deemed excise license covers it.

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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. Condition-based excise determination is the method that the system uses of determining excise duty in India. This method requires you to create condition records for each combination of vendor or customer and material (and possibly other conditions). When you create a purchasing document, the system calls the tax procedure assigned to India. The tax procedure finds all of the condition records that you have created for that combination of vendor and material. When you create a sales document, the excise duties and sales taxes are determined by the pricing procedure (not the tax procedure). Formula-based excise determination is the method that the system uses of determining excise duty in India. This method was used in the Country Version India Add-On and requires you to maintain additional data in the Excise Rate Maintenance transaction, J1ID. When you create a purchasing document, the system calls the tax procedure assigned to India. Each of the excise duties in the tax procedure has its own condition types, and each condition type is assigned to a formula. This formula instructs the system to calculate the excise duty using the data that you have maintained in the Excise Rate Maintenance transaction. When you create a sales document, the system determines the excise duties and sales taxes using the pricing procedure (not the tax procedure).

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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. Activities If you use condition-based excise determination, fill out the CVD condition 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.

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Condition-Based Excise Determination 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. Activity: 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. Standard settings: The standard system comes with sample settings for the tax calculation procedures and pricing procedures. Use these settings as a basis for your own.

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5. Logistics - General: Master Data
Maintain Chapter IDs In this IMG activity, you maintain the chapter IDs and the corresponding descriptions as per the schedules published by the Central Board of Excise and Customs. Chapter ID is the number given to a material in the schedules of materials published by the government of India. The schedule lists all materials involved in manufacturing, input materials and output materials alike. It shows how much excise duty is levied on each material. Each material in the schedule is assigned its own identification code, called "chapter ID." Example The schedule contains an entry for ceramic roofing tiles, which are liable to basic excise duty at 16%. The chapter ID associated with these tiles is 6903.10.

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Assign Users to Material Master Screen Sequence for Excise Duty In this IMG activity, you customize the material master data so that it shows the information relating to excise duty. Standard settings Country Version India comes with a screen sequence (IN) that shows the excise duty fields. You have to assign it to each of your users. Activities 1. Double-click User Screen Reference. 2. Assign all users who need to see the excise duty information to the screen reference IN. Example Name MISHRA Screen Reference IN

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Define Form Types In this IMG activity, you define which form types you want to record in the system. You can only use form tracking for the form types that you enter here. Example o Form type: CT3 o Form description: Concessional tax form o Status: Receive

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6. Logistics - General: Account Determination
Define G/L Accounts for Taxes (OB40) 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. Activities Assign an account to each of the following posting keys. The accounts for VS1, VS2, and VS3 are used as clearing accounts during invoice verification. o VS1 (basic excise duty) o VS2 (additional excise duty) o VS3 (special excise duty) o VS5 (sales tax setoff) o MWS (central sales tax) o MW3 (local sales tax) o ESA (service tax) o ESE (service tax expense) Let us see the CGL present config: Transaction type EX1 Excise duty on Input EX2 SET ST1 ST2 SUR TOT Excise Duty on Sales SET-OFF A/R Local Sales Tax A/R Central Sales Tax A/R LST SURCHARGE A/R TURNOVER TAX

GL A/c 5381 MODVAT Clearing A/c 6 0076 Excise Duty recovery A/c 6 5378 Sales Tax Set Off Receivable A/c 6 7542 LST Payable A/c 5 7541 CST Payable A/c 2 7545 Sales Tax Surcharge A/c 6 7548 Turnover Tax 56

VTI VTC ZPT ZSR ZTX

A/P VAT INPUT CREDIT A/P VAT INPUT CR-C/F PURCHASE TAX PAYABLE A/R LST Surcharge A/R TURNOVER TAX

7 5439 6 5440 8 7547 4 7545 6 7548 7

VAT Set Off Receivable A/c VAT Set Off Deferred on Capital Goods A/c Purchase Tax Payable A/c Sales Tax Surcharge A/c Turnover Tax

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. Activities 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 GRPO GRPO GRPO DC ind CR CR DR Account name CENVAT clearing account RG 23 BED account CENVAT on hold account

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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

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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.
ETT 57CM 57FC 57NR ARE1 ARE3 CAGI CAPE CEIV DIEX DLFC EWPO GRPO MRDY MRRD MRWO OTHR TR6C UTLZ Description 57F CHALLAN COMPLETION 57F CHALLAN CAPTURE/CHANGE 57F NON RECEIPT EXPORT PROCESSING UNDER ARE1 DEEMED EXPORTS UNDER ARE3 CAPITAL GOODS ISSUES CAPITAL GOODS CANCELLATION OF EXCISE INVOICE DIFFERENTIAL EXCISE THROUGH JV GOODS REMOVAL THROUGH SALES EXCISE INVOICE WITHOUT PO EXCISE INVOICE FOR GOODS RECEIPT/PO REVERSAL WITHOUT REFERENCE REVERSAL INCASE OF COMSUMPTION PRODUCTI CENVAT REVERSALS FOR WRITE OFF EXCISE INVOICE FOR OTHER MOVEMENTS PLA ACCOUNT ADJUSTMENT THROUGH FORTNIGHTLY PAYMENTS

OTHER

THAN

Let us consider the case of standard CIN configurations (Chart of Accounts – CAIN)

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Ch_Of_Accoun ts

GL A/c 61

CAIN CAIN CAIN CAIN CAIN CAIN CAIN CAIN CAIN CAIN CAIN CAIN CAIN CAIN CAIN CAIN

24820000 24840000 24850000 24860000 24870000 24920000 13113920 24880000 24890000 24900000 24910000 24930000 13113910 24920000 13113930 40011000

CENVAT Input BED CENVAT Input SED CENVAT Capital BED CENVAT Capital AED CENVAT Capital SED PLA On Hold CENVAT clearing PLA BED PLA AED PLA SED PLA Cess CENVAT On hold CENVAT Suspense PLA On Hold CENVAT reversal Sales-Domestic Cust sales-Ex Duty Recovered

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7. Logistics - General: Business Transactions
Incoming Excise Invoices (Post: Vendor Excise Invoice – J1IEX) Select Fields In this IMG activity, you specify which fields you want in the Incoming Excise Invoices transaction. The settings that you make here apply for all versions of the transaction that you might create. For each field, specify whether you want it to be an input field, a display field, and so on. You can also highlight fields of particular importance. Only the main table is of interest. You do not need to use the other functions, such as Influencing or Screen Groups. Check the standard:

Define Processing Modes Per Transaction In this IMG activity, you specify which processing modes the user can use in the various Incoming Excise Invoice transactions. This way, you can tailor the transaction to what your users have to do. Standard settings: The system comes with three standard transactions relating to the Incoming Excise Invoices function (those that are included in the role SAP_CIN). The processing modes available in these transactions are as follows: 63

  

J1IEX_C: This transaction is for excise clerks: users of this transaction can only capture and display excise invoices. J1IEX_P: This transaction is for excise supervisors: they can change, display, cancel, and post excise invoices. J1IEX: In this transaction, users can capture and post excise invoices, as well as displaying, changing, and canceling them.

Activities: If the standard settings meet your requirements, do not do anything. Otherwise, you can adjust the standard settings or you can create your own transactions. To do so: 1. In Maintain Transaction (SE93), create a new transaction by making a copy of one of the standard transactions. Give the new transaction a transaction code of your choice. 2. In this activity, enter data as follows: - Tcode: The transaction code that you have just created. - Proc. mode: Specify what the users of the transaction will do with the excise invoices. - Active: Select this indicator to activate the setting. Example: You might want to create a transaction that only allows users to display excise invoices. See the sample screenshot:

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Define Reference Documents Per Transaction In this IMG activity, you specify for each combination of transaction and processing mode which reference documents you want the users to be able to use. Activities: If the standard settings meet your requirements, you do not have to do anything. Otherwise, add the entries that you need to the table: For each transaction, make one entry per combination of processing mode and reference document. Activate each entry for it to work. Excise Invoice Reference Document: It is a document, in India, that you refer to when you enter an incoming excise invoice. If you have already posted the goods receipt, you can use the goods receipt document as the reference document. Otherwise, you can use the purchase order (or another purchasing document, such as a be a contract or a scheduling agreement). Example: In the SAP System, you create a purchase order for 100 bags of sand and send the order to your vendor. Two weeks later, the vendor delivers the sand, accompanied by an excise invoice. When you enter the excise invoice in the system, you specify the number of the original purchase order: this is the reference document. See the sample screen shot

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Maintain Rejection Codes In this IMG activity, you define the rejection codes that are used in the Incoming Excise Invoices transaction. Activities: For each rejection code, enter a code and a description. You can also specify whether the excise duty in the invoice is to be posted to the CENVAT on hold account, instead of the CENVAT clearing account. Specify Which Movement Types Involve Excise Invoices In this IMG activity, you specify which movement types relating to goods receipts involve excise invoices. The system uses this information during the goods receipt procedure. When you post a goods receipt using one of the movement types that you have specified here, the system prompts you to enter the excise invoice number. This option cannot be used for processing goods receipts without purchase orders.

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Outgoing Excise Invoices Pricing Procedure for Factory Sales Standard settings: Pricing Factory Sales Pricing Procedure – JFACT This is a template of pricing procedure for Sales from Factory. JMAN is a manual condition for Excise. When manual override is required for the calculated excise value it could be given for the condition JMAN. The condition value formula 355 checks and copies this on to the Basic Excise duty value. UTXJ is the condition in JFACT, which triggers the calculated call of tax procedure TAXINJ. Condition records need to be maintained for UTXJ with the appropriate tax code. Access sequence JIND has been assigned to the condition UTXJ. Base value for calculation of excise derived from the condition base value formula 351. This ensures that if an assessable value is maintained for the material through Excise rate maintenance (J1ID) then that will be used as basis for excise calculation. In the absence of an assessable value the selling price will be used for excise calculation. JMOD is a FI Tax condition, which gets the Basic Excise duty from calculation formula 352. JEX2 is a copy of JMOD and is a Sales pricing condition. The value of JEX2 gets posted for Excise account key. This ensures that the cost accounting of excise value paid is done correctly. In cases where commercial invoice is created after utilization the condition value formula 353 ensures that the actual MODVAT utilized is accounted as excise. Similarly JAED is a FI Tax condition, which gets the Additional Excise duty from calculation formula 352. JEXA is a copy of JAED and is a Sales pricing condition. The accounting is done for the value of JEXA. JSED is a FI Tax condition, which gets the Special Excise duty from calculation formula 352. JEXS is a copy of JSED and is a Sales pricing condition. The accounting is done for the value of JEXS. JCES is a FI Tax condition, which gets the CESS from calculation formula 352. JCED is a copy of JCES and is a Sales pricing condition. The accounting is done for the value of JCED. Sales Tax - Identification of Central or Local Sales tax. Both CST and LST rates are maintained in one tax code in the same jurisdiction. (Refer Tax code V8). The rates are maintained at the tax code level. But then requirement formulae are attached to the LST and CST tax conditions in the tax procedure. The requirement formula 351 decides whether CST is applicable based on the Region of the ship-to party and the region of the delivering plant being different. The requirement formula 352 decides whether LST is applicable based on Region of the ship-to party and the region of the delivering plant being same. You can enhance the requirement formula to add your own logic for deciding whether the tax applicable is CST or LST. All the fields specified in the pricing field catalog are available in the formula. Important: If you are not using requirement formula to decide on the sales tax remove it from the Tax procedure as well as pricing procedure. Sales tax rates needs to be maintained separately for each jurisdiction 67

Important: Manual override of applicability of LST or CST is not possible if elimination is done using requirement formulae. LST and CST rates are maintained in different tax codes at different jurisdiction. (Refer tax code V5 and V6) Default Export Sales Pricing Procedure - JEXPOR There is no Excise condition in the Exports pricing. But excise can be calculated at MODVAT utilization. Stock Transfer Pricing Procedure - JSTKTR Stock transfer pricing has only excise conditions as it is used only for the calculation of excise value. Depot Pricing Procedure - JDEPOT Depot pricing procedure is exactly similar to the Factory pricing procedure with the exception that the condition value formula attached to the excise condition is 356. This ensures that the excise value from the referred excise invoices for the delivery is picked up and used by the commercial invoice.

Output Determination: In Standard Customizing for output determination following settings have to be maintained.
 

Output determination procedure has to be maintained against the Billing type Create an output type and maintain the Driver program, Form routine and the layout.

Driver program is the name of the program that the system calls up to process the output Form routine is the name of routine to be called up in the processing program Layout is the name of a SAPscript layout set that can be designed as per user requirement To enable printing of particular document for partner function, maintain the desired partner function against the output type. Printer communication details can be maintained by creating condition records where partner functions can be assigned to output types Copy Control from delivery to Billing (i) When excise and commercial invoice are the same The copy control path is OR> LF> F2 (ii) When excise and commercial invoice are different, i.e. multiple excise invoices for a single commercial invoice The copy control path is OR JF JEX F2 68

To Maintain copy control for billing documents (Path: IMG >Sales and Distribution>Billing>Billing documents>Maintain copying control for billing documents) Maintain the following entries for billing type F2 and Delivery type JF at item level  Item Category TAN  Copying requirements 310  Data VBRK/VBRP 351 Maintain the following entries for billing type JEX and delivery type JF at item level  Item Category TAN  Copying requirements 311  Data VBRK/VBRP 351 To check the formula and change source if required To check / change formula 310 & 311 VOFM > Copying requirements > Billing document > Choose Formula (Source Text) To check / change formula 351 VOFM > Data transfer > Billing document > Choose Formula (Source Text) Formula 310: The routine is to be attached to the copying requirement in LF to F2 copy control for TAN item category. This is to be used when the proforma invoice is used as reference for the excise invoice. i.e. the procedure in sales is SO -> LF -> JEX -> excise posting by J1II -> F2 The added functionality of this routine ensures that the excise posting takes place before the billing document is created. In case of depot sale it ensures that the excise invoice selection has taken place before the billing document is created. Formula 311: Done for the delivery document and it also prevents multiple creation of the billing/pro forma document to which this formula is attached multiple times for the same delivery item. Data transfer - Billing documents: This routine splits the items of a delivery into multiple billing/ proforma documents. The split is based on the following fields: Distribution channel, division, delivery, chapter id and also the maximum number of items in a document is picked up from the customization and imposed on the document being created Assign Billing Types to Delivery Types You enter outgoing excise invoices by referring to either of the following documents: 69

Customer invoices  Pro forma excise invoices These options are represented in the system by different document types and document flows.

In this IMG activity, you specify which billing document types you use as a reference for CENVAT utilization. Assign them to the appropriate delivery document types Requirements You have set up the delivery types and copy control as follows:  Create separate delivery types in Customizing for Logistics Execution (LE), by choosing Shipping -> Deliveries -> Define Delivery Types.  Set up copy control for the delivery types in Customizing for LE, by choosing Shipping -> Copying Control -> Specify Copy Control for Deliveries.  Create billing types in Customizing for Sales and Distribution (SD), by choosing Billing -> Billing Documents -> Define Billing Types.  Set up copy control for the billing types in Customizing for SD, by choosing Billing -> Billing Documents -> Maintain Copying Control for Billing Documents. Standard settings In the standard system, there are two document flows that you can use:  Standard order (document type OR) -> Outbound delivery (LF) -> Proforma excise invoice (JEX) -> Invoice (F2)  Standard order (OR) -> Excise invoice (JF) -> Invoice (F2). You can use these settings if you wish, or alternatively, you can make copies of these document types and copy control settings. Activities  Assign a CENVAT reference billing type to each delivery type.

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Maintain Default Excise Groups and Series Groups In this IMG activity, you specify which excise group and series group you want to appear in these fields by default. You can make separate settings for different combinations of sales organization, distribution channel, division, and shipping point. Activities This activity is optional, unless you want the system to automatically create outgoing excise invoices when you create a customer invoice. In this case, you must also make the appropriate setting in Customizing for Excise Duty, by choosing Basic Settings -> Maintain Excise Groups, and selecting Create EI (Create Excise Invoice Automatically).

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Subcontracting Subcontracting Attributes The subcontracting attributes help determine conditions for a combination of an excise group, a transaction type, and a sub transaction type. The conditions such as the number of excise items per subcontracting challan, if the non-excisable materials have to be filtered or not when the subcontracting challan is created, the movement type groups for issues and receipts and the hierarchy of determining the excise base value are mentioned here. Requirements: Before you continue with this activity, work through the following activities:

Materials Management -> Inventory Management and Physical Inventory -> Goods Issue / Transfer Postings -> Define Screen Layout. For the movement type 541, maintain the field Purchase Order as an optional entry or as a required entry. Materials Management -> Inventory Management and Physical Inventory -> Output Determination -> Maintain Output Types. Maintain the output type. On the Default Values tab, maintain the dispatch time and the transmission medium. Maintain the print parameter on the Print tab. This output type has to be maintained in this activity here. Materials Management -> Inventory Management and Physical Inventory -> Output Determination -> Assign Forms and Programs. Maintain the Program, FORM routine, and the form for the output type. Materials Management -> Inventory Management and Physical Inventory -> Output Determination -> Printer Determination -> Printer Determination by Plant / Storage Location. Enter the output device that you use.

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Maintain Movement Type Groups In this IMG activity, you group movement types together to form movement type groups. Movement type: A classification key indicating the type of material movement (for example, goods receipt, goods issue, physical stock transfer). The movement type enables the system to find predefined posting rules determining how the accounts of the financial accounting system (stock and consumption accounts) are to be posted and how the stock fields in the material master record are to be updated.

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Exports Under Excise Regulations EXPORT Make Settings for ARE-1 Procedure In this IMG activity, you make the settings that control how the ARE Documents transaction (J1IA101) works for ARE-1s. These settings apply to exports under bond and exports under claim for rebate. You can configure the system differently for different series groups. ARE-1 document: A form, in India, that companies have to fill out when they remove excisable goods from their manufacturing plants for export. The form exempts them from paying excise duty when they remove the goods from their premises.

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DEEMED EXPORT Make Settings for ARE-3 Procedure In this IMG activity, you make the settings that control how the ARE Documents transaction (J1IA101) works for ARE-3s. These settings apply to deemed exports only. You can configure the system differently for different series groups. ARE-3 document: A form, in India, that allows companies to sell otherwise excisable goods from their premises without paying basic excise duty. The buyer of the goods must be in possession of a deemed export license. The ARE-3 states what goods are being removed and which deemed excise license covers it.

Maintain License Types In this IMG activity, you maintain the license types that you want to use. You use the license types when you come to enter your customers' deemed export licenses (J1ILIC01): Whenever you enter a license, you have to specify which type it is. Deemed export license type: In India, the sort of license that a company needs to obtain to purchase goods under the deemed exports scheme. Different types of license are available, for example CT-1 or CT-2.

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PRINTOUTS OF ARE DOCUMENTS Maintain Output Type In this IMG activity, you can:  Define an output type for printing ARE-1s and ARE-3s from the ARE Documents transaction  Specify which program, FORM routine, and form you want to print the documents with You then assign the output type to the series groups that you use for ARE-1s and ARE-3s. To do so, in Customizing for Logistics - General, choose Tax on Goods Movements -> India -> Business Transactions -> Exports Under Excise Regulations -> Printouts of ARE Documents -> Make Settings for ARE-1 Procedure and Make Settings for ARE-3 Procedure. Standard settings The system comes with an output type already configured, J1IB (Excise Bonding). It is configured so that in the ARE Documents transaction, when you choose Print, the system:  Prints the ARE-1 or ARE-3 immediately  Prints the ARE document on the printer assigned to the storage location entered in the ARE document. In the IMG activity Specify Printers, you assign a printer to every storage location. If the output type does not meet your exact requirements, make a copy of the objects that you want to change (for example, the SAPscript forms), and change the copy.

Specify Printers In this IMG activity, you specify which printer in each storage location the SAP System prints the ARE documents on. Activities: Enter a printer for each storage location. If you want the system to print the ARE documents immediately you choose Print in the ARE Documents transaction, select immediately.

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TRANSACTION CONFIGURATION Define Processing Modes Per Transaction In this IMG activity, you specify which processing modes the user can use in the various ARE Documents transactions. This way, you can tailor the transactions to what your users have to do. Standard settings The system comes with eight standard transactions relating to the ARE Documents function (those that are included in the role SAP_CIN). The processing modes available in these transactions are as follows: Processing mode Create, change, update, cancel, display Create, change, display Update, display Cancel, display ARE-1s J1IA101 J1IA102 J1IA103 J1IA104 ARE-3s J1IA301 J1IA302 J1IA303 J1IA304

Separate transactions have been created to allow you to distinguish between users who can only create AREs and those who can update them, which requires more skill and knowledge of the CENVAT processes. Cancellation has been assigned a transaction of its own. Managers and administrators can use the central transactions with authorization for all processing modes. Activities If the standard settings meet your requirements, do not do anything. Otherwise, you can adjust the standard settings or you can create your own transactions. To do so: 1. In Maintain Transaction (SE93), create a new transaction by making a copy of one of the standard transactions. Give the new transaction a transaction code of your choice. 2. In this activity, enter data as follows: - Tcode: The transaction code that you have just created. - Proc. mode: Specify what the users of the transaction will do with the ARE documents. - Active: Select this indicator to activate the setting. Example You might want to create a transaction that only allows users to display ARE documents.

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Define Reference Documents Per Transaction In this IMG activity, you specify for each combination of transaction and processing mode which reference documents you want the users to be able to use. Activities If the standard settings meet your requirements, you do not have to do anything. Otherwise, add the entries that you need to the table: For each transaction, make one entry per combination of processing mode and reference document. Activate each entry for it to work. Excise invoice reference document: A document, in India, that you refer to when you enter an incoming excise invoice. If you have already posted the goods receipt, you can use the goods receipt document as the reference document. Otherwise, you can use the purchase order (or another purchasing document, such as a be a contract or a scheduling agreement). Example In the SAP System, you create a purchase order for 100 bags of sand and send the order to your vendor. Two weeks later, the vendor delivers the sand, accompanied by an excise invoice. When you enter the excise invoice in the system, you specify the number of the original purchase order: this is the reference document. 80

Maintain Rejection Codes In this IMG activity, you define the rejection codes that are used in the ARE Documents function. Activities For each rejection code, enter a code and a description. You do not need to use the third field..

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Utilization Utilization Determination In this IMG activity, you specify which CENVAT accounts are to be debited by the Fortnight Utilization of CENVAT report: When the report calculates how much excise duty you must remit, it automatically proposes which CENVAT accounts the duty should be debited to. Here, you specify those defaults. You can either:  Debit all the excise duty to one account  Debit the excise duty to more than one account, in which case you specify which percentage is to be debited to each account Example If you want 50% of basic excise duty (BED) to be debited to the RG 23A account and the remaining 50% to the RG 23C account, you would make the following settings: Acct name RG 23A BED account RG 23C BED account BED perc. 50 50

Alternatively, to debit all of the BED to the RG 23A account, and then RG 23C account, if there is not enough in the RG 23A account, you would make the following settings: Acct name RG 23A BED account RG 23C BED account BED perc. + X X

When you come to run the report, the system takes the RG 23A account because it is the first one you have entered. If this account does not cover the BED, the system takes the RG 23C account instead.

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See the utilization screen:

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Maintain Minimum Balances for Excise Accounts In this IMG activity, you can maintain minimum balances in your excise accounts. When the balance in these accounts during utilization falls below this level, the system automatically utilizes funds in the PLA account. Activities: Maintain the minimum balance amount for the excise accounts. If you have more than one excise group, you can maintain different minimum balances.

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Excise Registers Specify SAP script Forms In this IMG activity, for each of your company codes, you specify which SAPscript forms the system prints the excise registers with. Standard settings Country Version India includes a number of sample SAPscript forms and printing programs, which you can use as follows: Reg. name RG 23A Part I RG 23C Part I RG 23A Part II RG 23C Part II PLA RG 23 D RG 1 RT 12 RT 12 RT 12 Lay. no. 1 1 1 1 1 1 1 1 1 1 Form J_2IRG23A_PART1 J_2IRG23C_PART1 J_2IRG23A_PART2 J_2IRG23C_PART2 J_2I_PLA J_2I_RG23D J_2I_RG1 J_2I_RT12_ABSTRA J_2I_RT12_ABSTRA J_2I_RT12_3 Tcode/Prog J_2IRAP1 J_2IRCP1 J_2IRAP2 J_2IRCP2 J_2IPLA J_2IRG23 J_2IRRG1 J_2IRT12 J_2IRT12 J_2IRT12

The layout description can be left blank or an appropriate description may be filled in. You may not change the register name. You can have your own layouts and maintain the name here. If the output device and number of copies are maintained it is automatically picked up for printing.

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Logistics - General: Tools
Long Texts In this IMG activity, you define the different types of long texts that you want to be able to maintain in the various excise transactions. There is no limit to the number of types of long texts you can define. Activities: For each long text, you have to specify which transactions the long texts are for, so fill out the Object field accordingly: Transactions involving Excise invoices Excise JVs Subcontracting 57F4 Factory sales Fortnightly payment Code J1IA J1IH J1IF J1II J1IU

For example, if you want to create a long text for the Incoming Excise Invoices transaction (J1IEX), enter J1IA. Then give the long text an ID and description of your choice.

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Number Ranges You can maintain the number ranges for all CIN Number range objects using this transaction Activities Please maintain the number ranges for the following objects. The no nr has to be '01' for all 1. j_1iintnum At an Excise group 1. j_1irg23a1 2. j_1irg23a2 3. j_1iRG1 4. j_1irg23c1 5. j_1irg23c2 6. j_1ipla2 7. j_1iintpr2 8. j_1irg23d 9. j_1irg1_t ( material level) 10. j_1iconpla ( if Consolidated PLA is used ) At Series group 1. j_1iexcloc 2. j_1iexcexp 3. j_1idepinv 4. j_1i57Fc (57F Challans)

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Message Control In this activity, you can specify whether a given message should appear as a warning message or an error message. Activities: Enter each message that you want, specifying whether it should apply to one user or all users.

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