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By Shesagiri What is CIN? CIN Means Country India Version In Indian Taxing procedure, Excise Duty plays a vital role in manufacturing cenario’s. Excise related configuration is known as CIN configuration. CIN Configuration is a topic in itself. Some info on CIN Configuration (it may not appear as understandable below, but if you check on screen, it will be understood better) Country Version India comes with four pricing procedures as follows: - JINFAC (Sales from manufacturing plants) - JINEXP (Export sales) - JINDEP (Sales from depots) - JINSTK (Stock transfers CIN: IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings > Maintain Excise Registrations In this IMG activity, you maintain the data relating to your excise registrations. - Enter each of your excise registrations, specifying a four-character code for each Excise Registration Ids In this activity, you maintain excise registration IDs. You create one ID for each of your business's excise registrations. - For each excise registration in your business create a registration ID, and state: - Which taxes the registration covers (additional excise duty, special excise duty, and cess) Fields for any taxes that are not covered will be hidden in transactions involving excise duty. - The maximum number of items to be printed on each excise invoice - Whether you are allowed partial CENVAT credits Maintain Registration ID NUMBER, Excise code number, excise registration number ECC Number: Specifies the organization's ECC number. Excise Registration Number: A number assigned to each premises or location that has registered as a manufacturer with the excise authorities. Every entity with an excise registration number is required to keep its own excise books. Excise range: Specifies the excise range in whose area the excise registration is located. Excise Division: Specifies the excise division in whose area the excise registration is located.
Dependencies . and adds the nondeductible duty to the material value.Excise Collectorate: The code of the excise collectorate in whose area the excise registration is located.Additional Excise duty is livable in case of textile products.Excise year start month. This start month represents the month for the start of the excise invoice number range. In this IMG activity. you maintain the data relating to your company codes. The month 04 is entered here indicating April of the calendar year as the start month for excise invoices. Here ED is document type for cenvat posting. This information is used to split the transfer postings' items into multiple subcontracting challans. Document Type for CENVAT Postings. Automatic balance Indicator . Use In excise journal voucher transaction. Indicator for confirming. Excise invoice selection procedure :Excise invoice selection type. Maintain Company Code Settings. Any change by the Excise authorities regarding start month should be taken care of by an entry in this field and initialization. the system splits the input excise duty on the material into its deductible and nondeductible amounts.When you post a goods receipt. These are livable under the additional duties of excise act. Similarly for SED CESS Number of Items in Excise Invoice Shows the maximum number of line items that the authorities allow per excise invoice. Excise register set description: Description of the excise registers set. Partial CENVAT Credit: Indicates that the excise registration ID is allowed to credit only a portion of its input excise duty to its CENVAT account Dependencies . tobacco and sugar. It can be either earliest or latest . It posts the deductible duty to the appropriate CENVAT account. Indicator for providing debit account overwriting Debit Account Overwrite Indicator. It provides the flexibility to the user to enter the debit account of his choice depending on the nature of transaction. To indicate the method opted by the company for selecting the excise invoice. X . AED usage Additional Excise duty Percentage. Example . which document type the system uses when making CENVAT postings in Financial Accounting (FI). These duties are in addition to basic excise duty and special excise duty.This information is used when you create an excise invoice in Sales and Distribution (SD) for factory sales and for other movements. This information is also shown when you post the vendor's excise invoice. It controls. The calendar month marking the beginning of the excise year.Indicates debit accounts can be overwritten.
If the value of this field is 20 and today is 28-03-97. Number of excise invoices to be selected Indicates the number of excise invoices that needs to be selected in the excise invoice selection. Exchange rate type to be used for Export excise duty converts . The rest is posted the CENVAT on hold account. CVD Clearing Account .When you are creating an Excise invoice for export sales then the exchange rate for duty calculation will be picked up using this Exchange rate type. Example .Specifies which G/L account the system credits when you take a CENVAT credit on countervailing duty in the Incoming Excise Invoices transaction.You enter the exchange rate type to store different exchange rates. Example .This indicator is to be used for deciding whether Item level excise duty amount rounding off is required during procurement cycle. You can use the average rate for the currency translation. Document type for FI posting on Utilisation Financial accounting document type for TDS posting. selling rate. .You can use the exchange rate type to define a buying rate. when you verify a goods receipt for capital goods. If marked 'X' then the excise duty amount will be rounded off to the nearest rupee at the Purchase order level. or average rate for translating foreign currency amounts. . If the duty amount is less than one rupee then no rounding is done Rounding off of Excise duty for outgoing excise invoice .Key representing a type of exchange rate in the system. Document type for TDS FI posting: Financial accounting document type for TDS posting. This will not round off the CENVAT credit to be taken.invoices that were received. and the bank buying and selling rates for valuation of foreign currency amounts.You can round off the Excise amount to be paid during an outgoing Excise invoice by marking this indicator as 'X'. to immediately post half of the input excise duty to the appropriate CENVAT accounts. Exchange rate type . for use in the following year. Days to be considered for excise invoice selection Number of days from document date for excise invoice selection. The excise invoice selection will show the related invoices only for the period 08-03-97 to 28-03-97. Immediate Credit on Capital Goods . Indicator for item level excise duty round off . The rounding is done at the item level for each item where the amount is greater than 1 Rupee.Instructs the system.
If the indicator 'Folio no create' is marked system will generate Folio numbers for RG23D during receipt of excise invoice into depot. Depot . The RG 23A. and follow different procedures for goods receipt and invoice generation. Alternatively if you want to availa the credit only after all the goods receipts have been made mark it as ' Multiple GR for one excise invoice. . During depot sales if you do not want to do RG23D selection and posting separately and would like to complete RG23D selection in one step mark the indicator 'RG23D Auto post'.In this activity. For each excise group. Create one excise group for each set of registers that you need to keep. you can also control how various excise invoice transactions will work. If you receive only one consignment for an Excise challan then you can leave GR's per EI as blank. Assign the excise groups to plants. If your company has only one set of excise registers.In this activity. You cannot cancel the selection later. RG 23C and PLA serial numbers are created for an excise group. you define excise groups. you define your excise groups. 4.Multiple GR for one excise invoice. 2.In this IMG activity. Plant Settings . This will post the selected records into RG23D automatically. multiple credit'. Maintain whether this Excise group is for a depot or not. multiple books can be maintained. . For each plant: . you maintain excise information relating to your plants. 6. single credit'. 1. 7.In this IMG activity.You can assign the same ID to more than one plant.Assign it an excise registration ID. An excise group allows you to maintain a separate set of excise registers and excise accounts.Maintain Plant Settings . Recommendation . if required. you maintain excise information relating to your plants. But through exemption from the authorities.Depots are required to prepare register RG 23D.Multiple GR for one excise invoice. Single credit .Under normal circumstances. then you need to maintain only one excise group.Specify whether it is a manufacturing site or a depot. excise authorities require every business to maintain only one set of excise registers and one set of accounts. 3. .Number of goods receipt per excise invoice. multiple credit Maintain Excise Groups . . .Indicates that the plant in question is a depot. . If you want to automatically create Excise invoice during Sales cycle at the time of billing the tick the indicator 'Create EI' 5. If the indicator 'Default GR qty' is marked system will default the Excise challan quantity on to the Goods receipt if the Excise invoice number is given in the pop-up. Excise Groups . If you receive multiple GR's for a given Excise challan and would like to avail multiple credit mark the GRs per EI as 'Multiple GR's for one excise invoice.
Indicates that the plant in question is a depot. . you create different sets for each excise group.Multiple GR for one excise invoice . 'Automatic posting' when ticked will post the Excise invoice other movements automatically along with creation in single step. Following is the relation between excise group. 9. 10. You need not separately Post the excise invoice . 11. Single Credit Create Excise Invoice Automatically . Folio number for depo Posting .In define excise groups in Customizing. At the end of the period. . 'Create Part1 for STO' when marked will create a Part1 during the receipt of material through inter plant transfers. and series groups in Customizing for Sales and Distribution (SD). for example.If this indicator is marked then while creating Excise invoice for other movements system automatically does the Verify and Post. Then. If this is not selected then you need to separately do RG23D selection followed by PGI and then RG23D verification and posting. by choosing Excise Group . . you specify which excise group you are using. Excise Group Governs which set of excise registers a business transaction will be included in.RG23D Automatic Option if selected will create Depot excise invoice by posting the selection of excise invoices in single step. 'Create Part1 for consumption stock' when marked will create a Part1 during the receipt of material into consumption stock. you must also define the default plant. and follow different procedures for goods receipt and invoice generation. in transactions involving excise duty. plant and registration. RG23D Sales Creation and posting option . The excise invoice is created in the background.8.If this indicator is ticked then while doing Goods Receipt using 'MB01' system will default the excise invoice quantity on to the Goods receipt document. excise group.GR Per Excise Invoice .Depots are required to prepare register RG 23D. 'Create Part1 for Block Stock' when marked will create a Part1 during the receipt of material into Blocked stock . . when you come to prepare your excise registers. when you post a vendor's excise invoice.Series Group Determination.Multiple GR for one excise invoice . Default excise qty in GR . Multiple credit .Instructs the system to automatically create a Sales and Distribution (SD) excise invoice immediately you create a commercial invoice or a pro forma invoice. If you need automatic posting of RG23D selection then the Post Goods Issue should have been completed before running RG23D selection. This information tells the system which G/L accounts to post the excise to.If you want to make use of this function.
you define the different excise series groups within your company.Blocked stock . group 001 for excise invoices.If you use formula-based excise determination.Define excise series groups based on type of outgoing document .In this IMG activity.If you use condition-based excise determination. Series groups allow you to maintain multiple number ranges for the outgoing excise documents. use a copy of the tax procedure TAXINJ. Maintain Excise Duty Indicators .No account postings for CENVAT in sales cycle .General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty > Select Tax Calculation Procedure In this IMG activity. IMG > Logistics . . use a copy of the tax procedure TAXINN.No utilization Flag If you do not need any CENVAT utilization for an excise invoice but would like to just generate an excise invoice then you need to mark this indicator. . But each of these series has to be declared to the excise authorities. Immediate Utilization of CENVAT .Assign series group to excise registration ID . Account determination for immediate payment will be done exactly the same as being done for fortnightly utilization program.Stock transport order .You could define two series groups. Based on excise regulations and exemptions from the authorities you can maintain multiple number series for outgoing documents. . you specify which tax procedure you want to use for determining excise duties and sales taxes on input materials in India.Also we can set indicator for creation of part 1 for: . .In this IMG activity. the account determination within CIN IMG should point to the ED interim account. If the flag is checked then system will create an Excise invoice in the given Series group but there will not be any account postings or Part2 postings. and group 002 for 57 F4 documents. . Such invoices will not be listed for fortnightly utilization. If you have both fortnightly and immediate utilization for the same excise group. Example . the system immediately pays the amount from CENVAT and creates the Part II entry.If no financial postings are required for an Excise invoice in this seris group then you tick the 'No utilization' indicator.If the CENVAT has to be paid immediately and you need not wait for the Fort nightly payment then mark the 'Immediate Utilization' Iindicator.Consignment stock Maintain Series Group .Specifies that when you create an excise invoice. you maintain the excise duty indicators. .
TAXINN is only supports condition-based excise determination. so that you can work with both concurrently. Customizing : Make the settings in Customizing Basic -> India -> for Logistics – General. otherwise you will not be able to display old documents. special excise duty. .Specify the conditions in the sales order that are used for excise rates.In this IMG activity. If you use condition-based excise determination. additional excise duty. . such as which vendor you purchase a material from. a purchase order. fill out the CVD cond. by choosing Taxes on Goods Movements Account -> Excise Duties Using Condition Technique and …-> Settings Determination. and cess. fill out all of the fields as follows: .General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty > Condition-Based Excise Determination When you enter a purchasing document. for example. IMG > Logistics . you define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination. the system applies the excise duty at the rates you have entered in the condition records. field and leave all the others blank. See also : SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materials Management (MM) -> Condition-Based Excise Determination and -> Formula-Based Excise Determination. you create condition records for every sort of excise duty. whereas TAXINJ supports condition-based excise determination and formula-based excise determination. the R/3 System automatically calculates the applicable excise duties using the condition technique. .Specify the purchasing and sales conditions types used for basic excise duty. . you cannot switch to another one. Maintain Excise Defaults . Note that once you have started using a tax procedure. or which chapter ID the vendor stocks the material under. If you use formula-based excise determination. Features : The standard system comes with two tax calculation procedures. We strongly recommend that new customers use condition-based excise determination. Since the exact rates of excise duty can vary on a large number of factors. When you come to enter a purchasing document.This tax procedure also supports condition-based excise determination. Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.Enter the tax procedure and the pricing conditions that are relevant for excise tax processing.Specify the countervailing duty condition type used for import purchase orders.
Save the condition record.These activities include one activity where you define a tax code for condition-based excise determination. and enter the tax code for condition-based excise determination in each.Create condition records for all excise duties that apply. Enter the condition type that you want to create a condition record for and choose . You must also specify the vendor type – for example. You can use the same indicator for all the plants with the same excise status from a legal point of view. Choose . 2. 3. 6. 4. The system then calculates the excise duties using the condition records you have created. The system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice. plant. Formula-Based Excise Determination . for example.Vendor master data For each of your vendors with the same excise status from a legal perspective. and chapter ID. In the command field. . On the dialog box. . 5. You must also stipulate if the vendor qualifies as a small-scale industry. enter FV11 and choose . such as all those that are in an exempt zone. Day-to-Day Activities . which you can Master Data®access from the SAP Easy Access screen by choosing Indirect Taxes Excise Rate Maintenance. the system automatically calculates the duty for you. See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit). enter the dummy tax code that you have defined. Control Code means "chapter ID.In the Tax Code field.When you execute a business transaction involving materials that are subject to excise duty.When you enter a purchase order or other purchasing document. When the ordered materials arrive. you must have maintained all the data on the Excise Rate Maintenance screen. Creating Condition Records for Excise Duty 1. In order for the system to be able to determine which rate of excise duty to apply. Select the combination of objects that you want to create the condition record for. Master Data . you post the goods receipt and the excise invoice. select Country/Plant/Control Code. enter the tax code for condition-based excise determination in each line item. or a first-stage dealer. a depot." So. you define an excise duty indicator. Enter data as required.Plant master data You assign each of your plants an excise duty indicator. The Key Combination dialog box appears. whether the vendor is a manufacturer. to create a condition record for a tax that applies to a combination of country. For each permutation of plant indicator . You maintain the following types of data: .
and set the tax code type to V (input tax).01. . . you maintain the rate of excise duty. . . you then create a final excise duty indicator.In this IMG activity. Let’s assume the chapter ID at plant for the ball bearings is 1000.01 under status 7. 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 looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000. Only carry out this activity if you use condition-based excise determination.Material master data Each material is assigned a chapter ID. Similarly. you must customize your system accordingly. you then create a final excise duty indicator. assign the tax code for purchasing documents to the company codes where it will be used. when you enter an incoming excise invoice from a .Customer master data Similarly. The system uses this information when you create a document from another one. 2. Looks up the customer master data to see what status you have assigned the customer. 3. Let us consider an example to illustrate how the system determines which rate of excise duty to apply to a material. For example. Define Tax Code for Purchasing Documents . 4. Finally. you assign the same excise duty indicator to each of your customers that share the same legal excise status. Again.Create a new tax code. Do not make any other settings for it. for each permutation of plant indicator and customer indicator. The system automatically determines the rate of excise duty as follows: 1. If your business only qualifies for partial CENVAT credit. The system looks up the table under Excise Indicator for Plant and Customer to see what the final excise duty indicator is for customer status 3 and plant status 2: It is 7.Excise tax rate For every chapter ID and final excise duty indicator.In this IMG activity. Only carry out this activity if you use condition-based excise determination.and vendor indicator. Assume you are posting a sale of ball bearings to a customer. Looks up the plant master data to see what status you have assigned the plant. your plant has status 2. Let's assume you've assigned the customer status 3. 5. you define a tax code for the purposes of calculating excise duty when you enter purchasing documents. The system determines the chapter ID of the ball bearing for the plant. Classify Condition Types .Assign Tax Code to Company Codes In this IMG activity.
VS1 (basic excise duty) . IMG > Logistics .GRPO CR CENVAT clearing account . . and VS3 are used as clearing accounts during excise invoice verification. Use these settings as a basis for your own.MW3 (local sales tax) . you specify which G/L accounts you will use to record which taxes.MWS (central sales tax) . Requirements .In this IMG activity. . The fortnightly CENVAT payment utility picks up the credit side accounts from the transaction types of GRPO.VS2 (additional excise duty) . VS2. There is no separate transaction type for fortnightly payment.General > Tax On Goods Movement > India > Account Determination Define G/L Accounts for Taxes . In addition.In this IMG activity. Enter all the accounts that are affected by each transaction type.Excise TT DC ind Account name . EWPO.ESE (service tax expense) Specify Excise Accounts per Excise Transaction . If you use sub transaction types. The accounts for VS1.For taxes on sales. use the condition types contained in the pricing procedures.VS3 (special excise duty) . you assign the excise and CENVAT accounts to G/L . Example: .You have set up G/L accounts for each of the processing keys listed below.Assign an account to each of the following posting keys. . or when you create an outgoing excise invoice from a sales order. use the condition types contained in the tax procedure.GRPO CR RG 23 BED account .For taxes on purchases.purchase order. you specify which excise accounts (for excise duty and CENVAT) are to be posted to for the various transaction types.In this IMG activity.ESA (service tax) .GRPO DR CENVAT on hld account Specify G/L Accounts per Excise Transaction . enter the accounts for each sub transaction type as well. The standard system comes with sample settings for the tax calculation procedures and pricing procedures. when you create a purchasing document. .VS5 (sales tax setoff) . the system determines the various excise duties in the excise invoice using the information that you have entered here. the system only uses the condition types that you enter here. 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. and TR6C for determining the CENVAT and PLA accounts.
For each excise group. so maintain the credit account for transaction type DLFC as an excise duty interim account. Following document helps you to do this configuration. if you want separate account determination settings within an excise group. Once the data screens are exhibited. This will be set off when you remit the duty.e.SAPLMGD1. Click on tab view sub screen and ensure that the sub screen is blank. 15. 3. . no. Create a Material Master and check whether in Screen Foreign Trade – Import. which is “Foreign Trade: Import Data”.Defined the excise groups . Usually it would be 21. one set of accounts will suffice for all transactions.0001 and select the same. 21and Scrn 15. Even though this functionality is available in enterprise version.Material Master à Logistics General 1.Chart of accounts Furthermore.Defined the G/L accounts . Go to the last sub screen i. Requirements You have already: . you can also use sub transaction types.Maintained the transaction accounts Activities . When you come to execute the various transactions. 5.e. . Go to IMG Define Structure of Data Screen for each Configuring the Material master Screen Sequence. 4. SSq. ie. 7. 2205. Now in the last sub screen i. the system determines which G/L accounts to post to by looking at the: . 6. Config setting needed to be done in order to get the Excise Details Screen in Material Master. For most businesses. 2.Excise group . 21-15-6 . Note : you need not remit the CENVAT to the excise department immediately. select data screen no. Select your screen sequence.Company code .6 you delete SAPLMGD1 – 0001 and instead add SAPLJ1I_MATERIAL_MASTER and in the screen no. Select the same and click on Sub screens in the left frame.accounts. a small configuration step has to be made in Screen Sequences for Material Master. Select the same and click on Data Screen in the left frame. Excise related sub screen appears. assign the excise and CENVAT accounts to G/L accounts. Save the setting.
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