CIN - Country India Version ~ Volume 1

Purpose
Country Version India (CIN) contains a number of enhancements to standard Sales and Distribution (SD)
functions that allow you to handle local requirements, in particular excise duty.
Features
In Country Version India, (CIN), this component handles sales processes as found in India. In addition to
the generic functions, it allows you to:
Handle CENVAT in your sales processes
The system calculates excise on your sales and creates excise invoices as required and makes the
appropriate postings to your CENVAT accounts.
It covers sales from factories, sales from depots, and offers functions for other types of goods
movements; it also covers sales to export-oriented units and export sales.
Record concessional and exemption forms sent to you by your customers
Make adjustment postings to your CENVAT accounts
Excise Invoice (Outgoing)
Definition
The document that acts as the proof of payment of excise duty and is required for the customer to take
CENVAT credit on the item
Use
In the SAP System, there are three different procedures for creating excise invoices
Sales direct from the factory
This procedure is for when you sell manufactured goods straight from the factory at which they were
produced, in which case you levy excise duty when the goods leave the factory on their way to the
customer.
If, when you send the goods to the customer, you enclose the commercial invoice, you create the excise
invoice with reference to the commercial invoice. If you want to send the commercial invoice after you
have dispatched the goods, however, you create the excise invoice with reference to a pro forma
commercial invoice. For more information about these procedures, see Sales from Factories.
As well as creating excise invoices individually, you can also create them in batches (see Creation of
Excise Invoices in Batches).

Sales from depots

A depot is a site at which the goods are stored, away from the factory at which they were produced. In
this procedure, you have to levy the excise duty when you transfer the goods from the factory to the
depot, and then make sure this is passed on to the customer when it makes a purchase. For more
information, see Sales from Depots.
Sales (other goods movements)
Some other goods movements may also require you to create an excise invoice with reference to other
documents. The SAP System offers separate functions for these purposes (see Excise Invoices (Outgoing)
for Other Movements).

Structure
Numbering of Excise Invoices
Outgoing excise invoices have two numbers: an internal document number, which is assigned immediately
you create an excise invoice; and an excise invoice number, which is not assigned until you have verified
and posted it.
As far as the excise invoice number is concerned, you have to number your outgoing excise invoices in
sequential order, starting each year on 1 April. You must notify the excise authority of the jurisdiction of
the invoicing location. The serial number must be printed on each page of the excise invoice.
Each number range is governed by a series group. You must create at least one series group in order to
be able to number the excise invoices. If you need more than one number range, you must create the
corresponding number of series groups. You do so in the CIN Implementation Guide (IMG), by choosing
Global Settings ® Series Groups.
Number of Line Items Per Excise Invoice
Some states allow you to include only a limited number of items for each page of an excise invoice (for
example, if the excise invoices are to be printed on prenumbered forms). You can customize the system
so that it prints the excise invoice accordingly, in the CIN IMG, by choosing Global Settings ® Excise
Registration IDs.

Customer Master (Excise Data)

Definition
The part of the customer master record that contains information relating to Indian excise duty.
Use
In conjunction with other data, this data is used to calculate excise duty on various transactions.
To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes ® Master Data ® Excise
Rate Maintenance, and then select the following options described below.
Structure
The excise part of the customer master contains the following information:
Customer Excise Details
On this screen, you enter your customers' tax registration numbers, which are used for various forms of
correspondence and reports:
1. Excise registration number (and the range, division, and collectorate in which this is located)
2. Central sales tax (CST) number
3. Local sales tax (LST) registration number
4. Permanent account number (PAN)
In order for the system to be able to calculate which rate of excise duty to apply on sales to the customer,
you must also assign it a customer excise duty status (for more information about how this works,
see Determination of Excise Duty Rates).
Excise Indicator for Plant and Customer
On this screen, you define the final excise duty indicator (for more information about how this works,
see Determination of Excise Duty Rates).
Determination of Excise Duty
Use
When you execute a business transaction involving materials that are subject to excise duty, the system
automatically calculates the duty for you.
Prerequisites
In order for the system to be able to determine which rate of excise duty to apply, you must have
maintained all the data on the Excise Rate Maintenance screen, which you can access from the SAP Easy
Access screen by choosing Indirect Taxes ® Master Data ® Excise Rate Maintenance.
You maintain the following types of data:
Plant master data
You assign each of your plants an excise duty indicator. You can use the same indicator for all the plants
with the same excise status from a legal point of view, such as all those that are in an exempt zone.
See also the information about manufacturers that are only entitled to deduct a certain portion of the duty
(see Partial CENVAT Credit).
Vendor master data
For each of your vendors with the same excise status from a legal perspective, you define an excise duty
indicator. You must also specify the vendor type – for example, whether the vendor is a manufacturer, a
depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as a small-scale industry.
For each permutation of plant indicator and vendor indicator, you then create a final excise duty indicator.
Customer master data
Similarly, you assign the same excise duty indicator to each of your customers that share the same legal
excise status.
Again, for each permutation of plant indicator and customer indicator, you then create a final excise duty
indicator.
Material master data
Each material is assigned a chapter ID.
Excise tax rate
For every chapter ID and final excise duty indicator, you maintain the rate of excise duty.
If your business only qualifies for partial CENVAT credit, you must customize your system accordingly.
Activities
Let us consider an example to illustrate how the system determines which rate of excise duty to apply to a
material. Assume you are posting a sale of ball bearings to a customer. The system automatically
determines the rate of excise duty as follows:
Looks up the customer master data to see what status you have assigned the customer.
Let's assume you've assigned the customer status 3.
Looks up the plant master data to see what status you have assigned the plant.
Similarly, your plant has status 2.
The system looks up the table under Excise Indicator for Plant and Customer to see what the final excise
duty indictor is for customer status 3 and plant status 2: It is 7.
The system determines the chapter ID of the ball bearing for the plant.
Let’s assume the chapter ID at plant for the ball bearings is 1000.01.
Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID
1000.01 under status 7.
Plant Master (Excise Data)
Definition
The part of the plant master record that contains information relating to Indian excise duty.
Use
In conjunction with other data, this data is used to calculate excise duty on various transactions.
To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes ® Master Data ® Excise
Rate Maintenance, and then select the following options described below.
Structure
The excise part of the plant master is divided into the following screens:
Excise Indicator for Plant
On this screen, you enter your plants' tax registration numbers, which are used for various forms of
correspondence and reports:
1. Central sales tax (CST) number
2. Local sales tax (LST) registration number
3. Permanent account number (PAN)
In order for the system to be able to calculate which rate of excise duty to apply on purchases for this
plant, you must also assign it a plant excise duty status (for more information about how this works,
see Determination of Excise Duty Rates).
Excise Indicator for Plant and Vendor
On this screen, you define the final excise duty indicator (for more information about how this works,
see Determination of Excise Duty Rates).
Excise Indicator for Plant and Customer
On this screen, you define the final excise duty indicator (for more information about how this works,
see Determination of Excise Duty Rates).
Automatic Creation of Excise Invoices
Use
The SAP System can automatically create an outgoing excise invoice for you immediately you post a
commercial invoice (or a pro forma invoice) for a customer sale. This function applies to excise invoices
for sales from factories only.
Prerequisites
To activate this function, in the Country Version India (CIN) Implementation Guide (IMG), make the
following settings:
1. Under Global Settings ® Excise Groups, select Create EI.
This activates the automatic creation function.
2. Under Sales and Distribution ® Utilization Determination.
Here, you specify which CENVAT accounts the system is to post the different types of excise duty to.
3. Under Sales and Distribution ® Excise Group–Series Group Determination.
Here, you specify which excise group and series group the excise invoices are to be created for.
Features
When you post an invoice, the system creates an excise invoice. All the information that it needs to create
the excise invoice is provided either by the invoice or by the Customizing settings that you have made in
Sales and Distribution. It also determines the excise invoice type automatically by means of a user exit.
Creating Excise Invoices for Stock Transfers
1. From the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® For Depot
® Create/Change/Display.
2. In the Material document field, enter the goods receipt number and choose .
The system displays the information from the goods receipt, for example, the sending plant, the excise
registration, the range, the division, and the collectorate.
3. Choose Details.
The system copies the items from the goods receipt document. In the depot it is possible to have a
separate excise invoice at line item level.
4. Enter the internal document number of the excise invoice sent by the factory.
5. Choose More documents to go the excise invoice details screen.
6. Enter the internal document number of the excise invoice from the factory.
The system copies the information to the line item (for example, the excise invoice number, the excise
invoice date, the item number , the chapter ID, the excise invoice quantity, the amount of excise duty
paid, the excise base value, and the serial number of the Part II register entry with which the excise was
paid).
You can change the receipt quantity to match the actual quantity received at the depot, if necessary. The
system automatically adjusts the excise accordingly.
7. Go back to the item details screen.
8. Save the excise invoice.
Creating Excise Invoices for Direct Purchases
1. From the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® For Depot
® Create/Change/Display.
2. In the Material document field, enter the goods receipt number and choose .
The system displays the information from the goods receipt, for example, the sending plant, the excise
registration, the range, the division, and the collectorate.
You can also maintain the excise registration details for the ship-from party, as for with the vendor. The
ship-from can be different from the vendor code. (The delivering plant can be maintained as a ship-from
in the system. When a valid ship-from is entered, the excise registration details copied from the vendor
will be overwritten by the ship-from excise registration details.)
The ship-from registration details displayed can also be overwritten manually.
The dealer's commercial invoice number can be stored in the vendor excise invoice number, as in this case
the dealer himself will not have an excise invoice.
3. Choose Details.
The system copies the items from the goods receipt document. It also copies the vendor's excise invoice
number and the serial numbers of the entries in the RG 23A, RG 23C, and personal ledger account (PLA)
registers.
4. Enter the internal document number of the excise invoice sent by the factory.
5. Select an item and choose More documents to go the excise invoice details screen.
In the case of direct purchases, there will not be any excise invoice in the system, so leave the internal
document field blank. The vendor's invoice will show the details of the excise invoices through which
excise has been paid for the item that is being dispatched. You can enter these details here.
6. For each item, the chapter ID, excise base value, and excise duty amounts are defaulted from the
purchase order. You can change them if there is any difference. Enter the excise amount paid and the
receipt quantity. You also enter the Part II register serial numbers with which the excise duty was paid
and the excise registration information from the original excise invoice.
7. Go back to the item details screen.
8. Save the excise invoice.
The system creates an entry in register RG 23D. You can change the excise invoice as long as it has not
been used in any sales.
Assigning Excise Invoices to a Delivery
Use
You follow this procedure to specify which excise invoices are to be assigned to a delivery from a depot (or
other material document).
You can also automate this procedure, using the batch selection program (J_1IJCHK), by making the
appropriate Customizing settings in the Country Version India (CIN) Implementation Guide (IMG).
Procedure
1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise
Invoice ® For Depot ® Create/Change/Display ® Delivery or Material Document ® RG 23D Selection.
2. Enter the delivery document number or the material number and choose .
3. Select the excise invoice you want.
4. Choose .
5. Choose Excise invoice.
A list of excise invoices appears. These are the excise invoices at the depot with a balance quantity.
The system also shows a list of the A certificates that can be used. You can pick up any of the A
certificates, but they must be for the same excise invoice. You can only pick up an A certificate in its
entirety. You cannot select part of an A certificate.
6. Select the excise invoices that are relevant to the delivery.
7. Specify what quantity to be used from each excise invoice.
The system recalculates the excise accordingly.
8. Go back to the item details screen.
9. Save the data.
Result
The system creates an entry in register RG 23D and generates the depot excise invoice numbers.
If you selected any A certificates, the system also generates additional entries in the RG 23D register. The
system marks the original A certificates as updated, so that they cannot be used for any other removals.

CIN - Country India Version ~ Vol 2

Continue.... Volume 1
Creating Excise Invoices
Use
This is the procedure that you follow to create an excise invoice for the less common types of goods
movement.
Procedure
1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise
Invoice ® For Other Movements ® Create/Change/Display ® .
2. On the selection screen, enter data as required, including:
(i)Reference
group box
Specify which document you want to create the excise invoice for and which excise group it is for.
(ii)Details
group box
Specify the vendor or customer that you are sending the invoice to.
3. Choose .
If you entered an internal document number, the system copies the item details from it.
4. Choose .
5. Enter line items for each of the materials to be included in the excise invoice. For each item, enter the
following data:
(i)Material
(ii)Quantity
(iii)Unit of measure
(iv)Base value
(v)Excise duty
6. To pick the rate and amount from a specific excise invoice, choose Get excise invoice.
7. Save the excise invoice.
If you are using the one-step procedure, the system creates and posts an excise invoice. Otherwise, the
system saves the information but does not make any postings: it now has to be verified.

Verifying and Posting Excise Invoices

Use
You follow this procedure to verify that the information in an excise invoice that has already been created,
and to post it once you are satisfied.
Procedure
From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice
® For Other Movements ® Posting.
1. Enter the internal document number of the excise invoice.
2. Choose Release to accounting.
The system displays the excise invoice. The excise duty that is to be posted is displayed at the foot of the
screen, which you can change if necessary.
3. To access the balance utilization, choose .
4. To display the balance available on the CENVAT accounts, choose Account balances.
5. Save the excise invoice.
The system generates the accounting documents.
6. To print the excise invoice, choose .

Making a Transfer Posting

Use
In this procedure, you make a transfer posting for the goods ordered by another plant. For more
information about this function, see Entering the Removal from Storage at the Issuing Plant.
Procedure
1. From the SAP Easy Access screen, choose Logistics ® Materials Management ® Inventory Management
® Goods Movement ® Transfer Posting.
2. Choose Movement type ® Transfer posting ® Plant to plant ® To stock in transit.
3. Enter the number of the issuing plant and storage location.
4. Choose To purchase order.
5. In the dialog box, enter the number of the stock transport order that the receiving plant created and
choose
6. Check the data.
7. Save the transfer posting.
Transaction Codes for India
Transaction Action
J1I2 Prepare a sales tax register
J1I3 Create outgoing excise invoices in batches
J1I5
Update the RG 1 and Part I registers
J1I8
Post the challan used to remit TDS
J1IC194C
Create annual return under section 194 C (Classic TDS)
J1IC194D
Create annual return under section 194 D (Classic TDS)
J1IC194I
Create annual return under section 194 I (Classic TDS)
J1IC194J
Create annual return under section 194 J (Classic TDS)
J1IEX
Incoming Excise Invoices (central transaction)
J1IEX_C
Capture an incoming excise invoice (excise clerk)
J1IEX_P
Post an incoming excise invoice (excise supervisor)
J1INBANK
Post a bank challan
J1INCANC
Cancel a vendor withholding tax certificate
J1INCERT
Print a vendor withholding tax certificate
J1INCHLN
Create a remittance challan
J1INCUST
Post a customer withholding tax certificate
J1INHC
Withholding Tax Migration Health Check Program
J1INMIG
Withholding Tax Data Migration Tool
JI1NCHLC
Create a remittance challan for customers
J1INCC
Print customer withholding tax certificates
J1INMIS
Withholding Tax Information System
JI1NAR
Prepare annual returns (Extended Withholding Tax)
J1IF01
Create a subcontracting challan
J1IF11
Change a subcontracting challan
J1IF12
Display a subcontracting challan
J1IF13
Complete, reverse, or recredit a subcontracting challan
J1IFQ
Reconcile quantities for subcontracting challans
J1IFR
List subcontracting challans
J1IH
Make a CENVAT adjustment posting
J1IIN
Create an outgoing excise invoice
J1IJ
Assign excise invoices to a delivery for sales from depots
J1INJV
Adjust withholding tax Item
J1INREP
Reprint a vendor withholding tax certificate
J1INREV
Reverse a remittance challan
J1INPR
Calculate withholding tax on clearing accounts
J1INUT
Clear withholding tax on clearing accounts
J1IR
Download register data
J1IS
Process an excise invoice (outgoing) for other movements
J1IU
Process exemption forms
J1IW
Verify and post an incoming excise invoice
J1IX
Create an incoming excise invoice (without reference to purchase order)
J2I8
Transfer excise duty to CENVAT account
J2ID
Archive tax deducted at source (TDS) documents
J2IE
Locate tax deducted at source documents in archive
J2IU
Remit excise duty fortnightly
J2I9
Monthly CENVAT return
J1IG
Excise invoice entry at depot
J1IGA
Create additional excise entry at depot
J2I5
Extract data for excise registers
J2I6
Print excise registers
Sales from Factories
Purpose
This process describes how the SAP System handles the sales process, allowing for the creation of excise
invoices, which you have to send with each delivery that is subject to excise duty. There are two
scenarios, depending on whether you want to send the commercial invoice along with the delivery or at a
later date.
Prerequisites
In order for the system to be able to copy the information from document to document, you must have
set up the copying control procedures in Customizing for Sales and Distribution (SD). This differs
according to when you want to send the commercial invoice:
1. Along with the delivery
In this case, the document flow would be OR (standard sales order type) – LF (standard delivery type) –
F2 (invoice).
2. At a later date
The document flow would be OR – JF (delivery type, a copy of LF) – JEX (pro forma billing document type,
a copy of document type F8) – F2.
In addition, you must also have maintained the settings in the Country Version India (CIN)
Implementation Guide (IMG), by choosing Global Settings ® Assign Excise Invoice Billing Type to Delivery
Type.
A sample pricing procedure, JFACT, is provided for this sales procedure.
Process Flow
1. The sales clerk creates a sales order, following the
(i)standard procedure.
There are special procedures for:
(i)Customers in possession of exemption forms
(ii)Exports
2. The shipping clerk creates a delivery, again, following the
standard procedure.
On the initial screen, you set the appropriate delivery type (see above).
3. In the warehouse, the storeperson issues the goods.
The system only allows users to create a pro forma excise invoice if the delivery is complete, so as to
prevent them from creating multiple pro forma excise invoices.
4. What you do at this stage depends on whether you want to send the commercial invoice along with the
delivery or whether you want to invoice the customer later.
(A) If the invoice is to be shipped with delivery, the shipping clerk:
(i)Creates an invoice, following the standard procedure.
(ii)Creates an excise invoice from the invoice
(B) If the invoice is to be sent on at a later date, the shipping clerk:
(i)Creates the pro forma excise invoice
The pro forma excise invoice is only required for technical purposes and is not sent to the customer. The
system does not make any accounting postings at this stage.
(ii)Creates
an excise invoice from the pro forma excise invoice
In both these cases, the system creates an accounting document to post the excise duty to a clearing
account.
Instead of creating excise invoices manually, you can also have the system create them automatically.
Alternatively, you can create them in batches.
5. You ship the goods.
6. When the time comes to invoice the customer, you create the invoice, following the standard
procedure.
Irrespective of the number of excise invoices that you have issued, you can combine the delivery items in
a single invoice (if the standard requirements are met).

Sales from Depots

Purpose
You may sell finished goods directly from the place of manufacture, as described under Sales from
Factories, or you may first ship them to a separate location for storage (a depot), from where you will sell
them. The second procedure is described here.
Sales from depots are handled differently from sales from factories because of excise law: Excise duty is
payable when you send the goods from the factory to the depot, but it is not levied again when you sell
the goods.
Sometimes when you make a final sale of goods from a depot, price escalations could have happened with
retrospective effect. In such scenarios you need to pay the extra excise duty at the factory using an A
Certificate. You need to register the A certificate details in the RG 23D register and the excise recovered
from the customer.
Prerequisites
You have customized:
1. Stock transport processing, in Customizing for Materials Management (MM), by choosing Purchasing ®
Purchase Order ® Set Up Stock Transport Order
2. The copying control for copying stock transport order NL to excise invoice JEX
You make this setting in the Country Version India (CIN) Implementation Guide (IMG), by choosing Sales
and Distribution ® Assign Excise Invoice Billing Type to Delivery Type.
3. The item category NLN (standard transport order) so that it is relevant for billing
You do this in the standard IMG, in Customizing for Sales and Distribution (SD), by choosing Sales ®
Sales Documents ® Sales Document Item.
Process Flow
1. You create the sales order, following the
standard procedure.
The standard pricing procedure for depot sales is JDEPOT.
2. You create the delivery, again, following the
standard procedure.
3. You
assign excise invoices to the delivery or material document.
4. You
verify that you have selected the correct excise invoices and post them. Alternatively, if you have selected
the wrong excise invoices, you can cancel the assignment.
5. You create the invoice, following the standard procedure.

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