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This Presentation Covers 
 
Master Data Standard SAP Business Processes Excise Registers & SAP Reports

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Brief IDEA
In India , Excise duty is a tax on the manufactured goods that is levied when goods leave the place of manufacturer . Manufacturer can set off the duty paid on input materials against their output duty , this procedure is known as central value added tax [CENVAT ] . General ledger for excise duty updation will be assigned in CIN [ IMG ] under Accounting customization .When ever goods are received , Excise G/L will be updated for Modvat credit on inputs , RG 23 A part 1 for quantity and part 2 for Modvat credit amount . This register is used for material other then Capital Items . For Capital Items RG 23 C Part 1 and Part 2 will be Updated . For Depot receipts and sales RG 23 D Part 1 and Part 2 will be updated .

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SAP Easy Access India Localization Menu Go To Address Bar and Type Transaction Code J1ILN You get the SAP India Localisation Menu 4 .

Master Data Screen Follow the Menu Path for Excise Master Data 5 .J1ID .

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

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

Create New Entries Save the Chapter ID 8 .

Maintain Material & Chapter-id Combination 9 .

Click on New Entries and enter the following details 10 .

Here we indicate a material as Sub-contracting Sub- For all subcontracting Material ( sent and received ) pls tick on Subcontracting BOX 11 .

Here we define material type as : Consumables Assets Tools Non Convertible Raw Material RG1 12 .

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

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Click on New Entries and update Vendor Excise details 16 .

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

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

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Here we maintain Excise Indicator for the Plant in a combination of Co Code--Plants²First Month of Excise Year²No. Range²Excise Indicator Excise Indictor for all Manufacturing Plants in a Company Code will be ³1´ 21 .

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

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

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

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Also we can define AED & SED on Quantity Basis 28 . 2. We define the % on the combination of Plant & Material. SAP also support Sales Tax Setoff.1.

Consumables & Tools) Stock Transfer Subcontracting ± Without Payment of Excise Duty.  With Payment of Excise Duty. 29 .Standard SAP Business Processes Procurement: Procurement of Raw Material ± Domestic & Import Procurement of Capital Goods (Assets.

By this your GR/IR Documents gets Cleared off. 1. The system creates an accounting document crediting the Vendor and debiting the GR/IR Document. Here The System Creates:  Material Document to Record Goods Receipt  Creates an Accounting Document to debit the inventory account and credit the GR/IR clearing account  Creates Part I Entry in Register RG23A or RG23C The Excise Clerk Captures the Vendor¶s Excise Invoice with reference PO/GR Document via J1IEX-Capture. 30 3 4 5 . The System Creates PART II Entry in Register RG23A or RG23C and a Accounting Document to debit MODVAT Accounts and Credits GR/IR Liability CENVAT. When the goods arrives. the warehouseman enters the goods receipt via MIGO. 2. You Create Purchase Order via ME21N or a Schedule Agreement via ME31L with Pricing which includes Excise Duty. You enter the Vendor Invoice in the system via MIRO.Procurement of Raw Material . The Excise Supervisor checks the excise invoice captured by the clerk & Posts the CENVAT via J1IEX-Post .Domestic.

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

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

The System Creates PART II Entry in Register RG23A or RG23C and creates the Accounting Document. 33 . to Shipping Notification via MIGO. 5. You Create Shipping Notification via VL31N. 3.r.f. 4. The system created accounting Entries crediting your Vendor & debiting the GR/IR Account. You Create Purchase Order with all conditions applicable for Imports via ME21N.Imports 1. 2. You Enter the Vendor Invoice via MIRO. You Capture & Post Vendor¶s Excise Invoice via J1IEX or together with MIGO.Procurement of Raw Material . You do Goods Receipt w. The System Create PART I Entry in Register RG23A or RG23C and an Accounting Document.

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

via J1IFQ. when you send materials to a subcontractor for processing. you are not required to pay any excise duty.f. You Reconcile received Qty. 5. However. You Create a Transfer Posting Document via MB1B w. you will have to post credit entries to the extent of the CENVAT rate of the assessable value of the materials. even though the materials have left your premises. In the case of materials that you have manufactured in-house. 4.Subcontracting There are two ways of handling the excise invoice on the goods that you provide them with: ‡ Subcontracting without payment of Excise Duty: The Process Flow is: 1. You Create a subcontract order via ME21N with ³NIL TAX CODE´.r. 2. You Create a Subcontracting Challan widely called as 57F4 Challan via J1IF01. to Subcontract Order. 35 . with Challan Qty. if the materials have not been returned to you within a given length of time specified by the law (in 2000. 3. Under excise law 57AC. 180 days). You do Goods Receipt with that Challan Reference via MIGO. you will have to reverse any excise credit that you posted when you purchased the materials.

6. 8.Subcontracting ‡ Subcontracting under Full payment of Excise Duty:. together with the excise invoice. 5. 9.f to Material Document. using the purchase order as the reference document via J1IEX. 7. You send the materials to the subcontractor. You create an outgoing excise invoice for the materials via J1IS w. The excise supervisor posts excise invoice via J1IEX. 2. You capture the subcontractor¶s excise invoice. together with another excise invoice. 4. 3. You create a Subcontract Order via ME21N. 36 . The warehouseman enters the goods receipt via MIGO. You create a transfer posting for the materials that you want to send to the subcontractor via MB1B. The accounts payable clerk posts the subcontractor¶s invoice via MIRO. The subcontractor processes the materials and returns them to you. The Process Flow is: 1.r.

Stock Transfer 1. 37 3. again using the stock transport order as the reference document via MIGO. Create an excise invoice via J1IS. b. c. Then Goods are dispatched. Capture the excise invoice. together with the excise invoice. The issuing plant has processes your order. . and send the order to the issuing plant. Issue the goods using a transfer posting via MB1B. Once the goods arrive at receiving Plant. and when it is ready to ship: a. 2. You create a stock transport order. c. Posts the excise invoice via J1IEX. using the GR Document as the reference document via J1IEX. Enter the goods receipt. a. b. Verifies and posts the excise invoice.

Standard SAP Business Processes Sales Stock Transfer 38 .

At the end of the Cr. Excise Invoice is created in Background. Customer A/c. You Create an Outbound delivery via VL01N with movement type 601.Sales from Factory 1. You Create a Sales Order via VA01 or Schedule Order via VA31 with conditions of Excise. 3. You define this movement type as relevant for RG1 Register. You Create a Billing Document/Commercial Invoice via VF01. Any other Condition like Freight. 2. Octroi etc. Sales A/c year Cr. Excise duty Recovered Account Recovered Account Cr. Excise Duty payable Account 39 . Cr. Paid Account = b Dr. a Dr. Excise Duty Paid A/c. The system creates two accounting documents.

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

Eg: Accounting Documents 41 .

f. You Create Stock Transfer Order via ME21N or ME27. 2.f. Process Flow: At Issuing Plant: 1. to Purchase Order via MIGO. Purchase Order via VL04. 3. You Create Billing Document w.r.f. At Receiving Plant: 1. You do Goods Receipt w. Outbound Delivery via VF01 and Excise Invoice is created in Background. You Post CENVAT via J1IEX. You Create an Outbound Delivery and w.Stock Transfer This is the Stock Transfer of our Finished Goods from one Plant to Other.r. 42 . 2. You do the Post Goods Issue via VL02N 4.r. This Stock Transfer follows SD Route.r. GR Document via J1IEX or the same can be done in one step via MIGO. You Capture Excise Invoice w.f. 3.

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

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

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

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

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

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

You Create a TR6C Challan on the basis of that FI Document 49 . PLA and Crediting Bank A/c. you transfer the Balance amount in your PLA and then do Utilization. You Create an FI Document Dr. 2. 1.TR6C Challan When you don¶t have enough Balance in either of RG23A BED or RG23C BED to pay off Excise duty.

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

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

The register shows goods movements from the factory to a store specifically 52 for excisable finished goods. RG23D: It records the receipts & issues of excisable materials at Depot. This Register shows the quantities of the materials. This Register shows the quantities of the materials. and how much you have transferred to the CENVAT accounts RG23C PART I: This Register has now become Obsolete and not required now a days. RG23C PART II: Part II shows the amounts of excise duty on the materials. RG1: A register of excisable finished goods kept by manufacturing plants. RG23A PART II: Part II shows the amounts of excise duty on the materials. .Reports & Excise Registers Excise Registers: RG23A PART I: This Register has now become Obsolete and not required now a days. and how much you have transferred to the CENVAT accounts PLA: These is Personal Ledger Account for Excise.

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

UPDATION OF RG1 REGISTER T.CODE: J1I5 RECEIPTS

Enter : Posting date Movement Type for Receipts Classification as ³ROP´ Select RG1 and press f8
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You get the List of Material Documents for Receipts This is called Traffic Lights Select all & Simulate. Traffic Lights goes Green. Again Select All and Click on ³Create Register Entry´. System will update your RG1 Register.

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RG1 Updation for Dispatches

Repeat the Procedure: Enter Posting date Movement Type Classification as IDH Select RG1 and press f8
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The System updates the RG1 Register 57 .RG1 Updation for Dispatches If Traffic lights goes Green. it means system will update the material Documents but if it goes Red then it means that there is no stock Select all and click on ³Create Register Entries´.

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

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

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

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

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

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

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

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

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

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

RG23A & RG23C Accounts. Carry forward of Balance in PLA. J2I8 ± Transfer of 50% MODVAT on Capital Goods 68 .ON BEGINING OF THE FINANCIAL PERIOD  Excise Number Range Copy to New Fiscal Year.