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Sections

  • Recipient Type
  • Calculate Tax Deducted at Source
  • Handling of Credit Memos
  • Making Down Payments on Invoices Where TDS Has
  • Been Calculated
  • Reversing TDS Postings
  • Remittance Challans
  • Print Certificates
  • Reprint Certificates
  • Cancel Certificates
  • Archiving of TDS Documents
  • Archiving TDS Documents
  • Creating an Archive Report Variant
  • Deleting TDS Documents
  • Reloading TDS Documents
  • Archive Overview
  • Withholding Tax Type
  • Journal Vouchers
  • Entering Journal Vouchers
  • Provisions for Taxes on Services Received
  • Reversing Provisions
  • Canceling Remittance Challans
  • Reprint Vendor Withholding Tax Certificates
  • Cancel Vendor Withholding Tax Certificates
  • Withholding Tax Certificates from Customers
  • Selecting Which Line Items to Clear
  • Withholding Tax Information System
  • Implementing Logistics Invoice Verification (MM-LIV)
  • Archiving Cleared Items
  • Customizing Extended Withholding Tax
  • Defining Official Withholding Tax Keys
  • Defining Withholding Tax Types and Withholding Tax
  • Codes
  • Defining Minimum and Maximum Amounts
  • Making Additional Settings
  • Setting Up Authorizations for Migration
  • Blocking Users
  • Mapping Withholding Tax Types and Withholding Tax
  • Activating Extended Withholding Tax
  • Maintaining Vendor Master Records
  • Checking the Documents
  • Migrating the Documents
  • General Ledger Accounting (FI-GL)
  • Chart of Accounts
  • Financial Statement Version
  • Accounts Payable (FI-AP)
  • Example
  • Accounts Receivable (FI-AR)
  • Customer Master (Withholding Tax Data)
  • Asset Accounting (FI-AA)
  • Year-End Income Tax Depreciation Report
  • Calculation of Depreciation
  • Calculation of Capital Gains or Losses on Sales of
  • Assets
  • Material Master (Excise Data)
  • Vendor Master (Country Version India Data)
  • Creating Condition Records for Excise Duty
  • Formula-Based Excise Determination
  • Vendor Master (Excise Data)
  • Customer Master (Excise Data)
  • Plant Master (Excise Data)
  • Excise Duty for Small-Scale Industries
  • Creating Purchase Orders
  • Entering Goods Receipts
  • Entering and Verifying Invoices
  • External Procurement (Imports)
  • Entering Invoices for Bills of Entry
  • Capturing Excise Invoices for Bills of Entry
  • Subcontracting
  • Subcontracting Without Payment of Excise Duty
  • Subcontracting Challan
  • Processing Subcontracting Challans
  • Creating Subcontracting Challans
  • Selecting Excise Invoices
  • Printing Subcontracting Challans
  • Reconciling Quantities
  • Deleting Assignments
  • Completing Subcontracting Challans
  • Reversing Excise Duty Credit
  • Recrediting the CENVAT Account
  • Making Transfer Postings
  • Posting Goods Receipts from Subcontractors
  • List of Subcontracting Challans
  • Creating Subcontract Orders
  • Creating Excise Invoices for Subcontractors
  • Stock Transfer
  • Incoming Excise Invoices
  • Reference Documents
  • Capturing Excise Invoices Using Reference
  • Documents
  • Specifying Reference Documents
  • Editing Header Data
  • Removing Items from the Item Overview
  • Editing Line Items
  • Capturing Excise Invoices Without Reference
  • Entering Header Data
  • Entering Line Items
  • Posting Excise Invoices
  • Long Texts
  • Rejection of Excise Invoices
  • Rejecting Excise Invoices
  • Rejecting Excise Invoices with CENVAT on Hold
  • Rejection Accounting Document
  • Posting CENVAT on Rejected Excise Invoices
  • Reversal Rejection Accounting Document
  • Reversal of CENVAT Postings
  • Reversing Goods Receipts
  • Reversing CENVAT Postings
  • Canceling Excise Invoices
  • Goods Movements and Excise Documents Combined
  • One-Step and Two-Step Procedures
  • Entering Goods Receipts and Excise Invoices
  • Entering Goods Receipts with Reference to Excise
  • Invoices
  • Entering Goods Receipts Without Excise Invoices
  • Entering Goods Receipts for Nonexcisable Goods
  • Entering Goods Receipts and Subcontracting Challans
  • Together
  • Entering Goods Issues and Excise Invoices for Transport Orders
  • Entering Goods Receipts and Excise Invoices Together
  • Entering Goods Issues and Excise Invoices Together
  • Capital Goods
  • Transfer of CENVAT Credit on Capital Goods
  • Part II Entries
  • CENVAT Document
  • Serial Numbers
  • Creation of Excise Registers
  • Update of Registers RG 1 and RG 23 (Part I)
  • Data Extraction
  • Register Printout
  • Download Register Data
  • Data Structure of Part I
  • Data Structure of Part II
  • Data Structure of RG 23D
  • Data Structure of Plant Master Data
  • Data Structure of RG 1
  • Monthly Return
  • Sales and Distribution (SD)
  • Customer Master (Country Version India Data)
  • Pricing
  • Exemption Forms
  • Export-Oriented Units
  • Creation of Excise Invoices in Batches
  • Printout of Excise Invoices
  • Creating Pro Forma Excise Invoices
  • Creating Excise Invoices
  • Excise Duty Utilization
  • Excise on Intercompany Billing Documents
  • Sales from Depots
  • Creating Excise Invoices for Stock Transfers
  • Creating Excise Invoices for Direct Purchases
  • Creating Additional Excise Entries at Depots
  • Assigning Excise Invoices to a Delivery
  • Verifying and Posting Excise Invoices Assigned to
  • Delivery
  • Verifying and Posting Excise Invoices
  • Making a Transfer Posting
  • Exports Under Bond
  • Bond Numbering
  • Bond Balance
  • Fast Credit
  • Processing Excise Bonds
  • Creating ARE-1s
  • Changing ARE-1s
  • Assigning Excise Bonds to ARE-1s
  • Posting ARE-1s
  • Updating ARE-1s
  • Entering Shortfalls in ARE-1s
  • Reversing ARE-1s
  • Sending ARE-1s to Excise Departments
  • Closing ARE-1s
  • Pro Forma of Running Bond Account
  • Statement Regarding Export of Excisable Goods
  • Bond Summary Report
  • Exports Under Claim for Rebate
  • Deemed Exports
  • Deemed Export License
  • License Numbering
  • License Validity
  • Processing Deemed Export Licenses
  • Creating ARE-3s
  • Changing ARE-3s
  • Assigning Deemed Export Licenses to Line Items
  • Posting ARE-3s
  • Updating ARE-3s
  • Entering Shortfalls in ARE-3s
  • Reversing ARE-3s
  • Deemed Export License Summary
  • ARE Documents
  • Automatic Address Determination
  • Printouts of ARE Documents
  • Export Periods and Rewarehousing Periods
  • Extending Export Periods and Rewarehousing Periods
  • Interest Calculation
  • Adding Excise Invoices to AREs
  • Removing Excise Invoices from AREs
  • Canceling AREs
  • Aging Analysis for ARE Documents
  • Transaction Codes
  • Form Tracking
  • CENVAT Adjustment Postings
  • Making Adjustment Postings for Scrap
  • Making Adjustment Postings for Materials Not Used in
  • Production
  • Making Adjustment Postings for Additional Excise Paid
  • Making Adjustment Postings for Money Transferred to
  • PLA
  • Making Adjustment Postings for Other Transactions
  • Assigning Excise Invoices to Line Items
  • Specifying Which CENVAT Accounts to Adjust
  • Displaying CENVAT Account Balances
  • Roles
  • India Localization
  • CIN Customizing and Master Data Maintenance
  • Excise Manager (Materials Management)
  • Excise Supervisor (Materials Management)
  • Excise Clerk (Materials Management)
  • Excise Manager (Sales and Distribution)
  • Excise Supervisor (Sales and Distribution)
  • Excise Clerk (Sales and Distribution)
  • Subcontracting Clerk
  • Bonding Clerk
  • TDS Manager
  • TDS Supervisor
  • TDS Clerk
  • Register Maintenance Clerk
  • Transaction Codes for India

India

Page 1 of 224

India
Purpose
This country version is designed for use by businesses with operations in India. As well as the generic SAP system functions, it comprises functions designed for laws and business practices particular to India, and a country template to help you customize the system according to local requirements. This documentation explains how the country-specific functions work and what Customizing settings are made by the country template. It does not cover the generic functions, which are described in the rest of the SAP Library.

Features
Country-Specific Functions
Most of the country-specific functions for India relate to Financials and Logistics. The main areas are as follows: • • • Excise duty and the central value-added tax system (CENVAT) Withholding tax (also known as tax deducted at source) Sales tax

• Maintenance and printing of statutory excise registers All of the menu paths given in this document are based on the India Localization role, with the exception of functions in withholding tax, whose menu paths are given from the SAP Easy Access menu.

Country Template
To allow you to customize your Indian company codes more quickly, you can use the Indian country template in the Country Installation Program.

Financial Accounting (FI)
Purpose
The Financial Accounting (FI) component covers the most important laws and business practices specific to India. The following documentation describes these aspects of the component.

Features
Country-Specific Functions
Country Version India comes with a large number of additional functions for withholding taxes. The customer and vendor masters have been enhanced to store data only used in India. An extra report is also provided for depreciating assets according to the Income Tax Act.

Country Template
The country template for India comes with: • • • Sample settings for calculating and posting taxes A chart of accounts and financial statement version Sample settings for asset depreciation

Taxes (FI-AP/AR)
Purpose
The Taxes component covers the most important laws and business practices specific to India. The following documentation describes these aspects of the component. For generic information about Taxes, see Taxes (FIAP/AR).

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Features
Country-Specific Functions
Country Version India uses the standard functions for calculating and collecting withholding taxes. However, both Classic Withholding Tax and Extended Withholding Tax come with additional functions for tax remittance, journal vouchers, creating withholding tax certificates, and preparing annual returns. If you want to handle excise duties, you must post the excisable transactions using the Materials Management (MM) and Sales and Distribution (SD) components. The system calculates the excise duty in these components and creates the appropriate line items in Financial Accounting (FI). However, if you only want to handle withholding taxes, you can use FI on its own.

Country Template
The country template for India comes with settings for calculating and posting withholding taxes, and account determination settings for posting excise duty.

Excise Duty
Use
The SAP system automatically calculates excise duties in Materials Management (MM) and in Sales and Distribution (SD), and posts them in Financial Accounting (FI). The system covers all types of excise duty, all of which need to be calculated and reported separately: • • • • • • • • Basic excise duty (BED) Special excise duty (SED) Additional excise duty (AED) National calamity contingency duty (NCCD) Cess Education cess Countervailing duty Additional duty of customs

Features
The system of excise duties is complex, and differs from the generic functions for taxes on sales and purchases in a number of ways: • • The rate of duty on a single material can vary according to which chapter ID it is listed under. You cannot offset all excise duty on inputs against outputs.

Depots cannot offset any input duties at all. Manufacturing plants can only offset input duties if they can show that the input materials are used to produce output materials.
• • • You have to record all excise duty (inputs and outputs) in excise registers. Your company may only be entitled to offset a portion of the duty on inputs against duty on outputs. Companies that qualify as small-scale industries can levy excise duty on outputs at reduced rates, so if you purchase materials from these companies, you must calculate a different rate of excise duty.

Excise Determination
MM comes with two ways of determining excise duties (and sales taxes) on input materials: formula-based excise determination and condition-based excise determination. The system calculates excise duties using a tax procedure. SD also supports formula-based and condition-based excise determination, but in SD, the system calculates the taxes using a pricing procedure, not the tax procedure (see Pricing).

Reporting

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You have to remit the excise duty that you have collected to the central excise authorities. The law requires you to remit excise duty twice monthly: for the first half of any given month (1–15 inclusive) and from 16 to month-end. In each case, you are allowed five days to remit the excise duty. Country Version India offers a report to help you do just that (see Remittance of Excise Duty Fortnightly). A small number of transactions have to be remitted on the same day (see Other Outward Movements). In addition, the system allows you to prepare printouts of the various excise registers for the tax authorities.

Partial CENVAT Credit
Use
In some industries, businesses are only allowed to set off a portion of their input excise duty against output duty. In this case, the remainder of the duty is added to the material value.

Activities
Customizing
If any of your excise registrations are only entitled to claim partial CENVAT credit, set the indicator in Customizing for Logistics – General, by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Excise Registrations. Configure separate tax codes that split the excise and post some as tax and add the rest to the material price.

Day-to-Day Activities
The portion of the excise duty that is added to the material value is displayed in the excise invoice, along with the CENVAT credit. This amount is added to the inventory value when you post the goods receipt.

Remittance of Excise Duty Fortnightly
Use
You use this report to calculate how much excise duty you must remit to the authorities. Legislation requires you to remit excise duty twice monthly: for all the goods issues in the first half of any given month (1–15 inclusive) and from 16 to month-end. In each case, you are allowed five days to remit the excise duty. Once the report has determined how much you have to pay, it allows you to specify where the money should be paid from – whether it should be deducted from the CENVAT credits that you have accumulated, or whether it should be deducted from the personal ledger account (PLA). Irrespective of which date you execute the report on, you can only utilize CENVAT credits posted up until the 15th or the last day of the month as the case may be.

Prerequisites
You have: • • Customized the system so that when you create an excise invoice for a sale, the system automatically debits the excise to a CENVAT clearing account Made the settings in Customizing for Logistics – General, by choosing Taxes on Goods Movements → India → Business Transactions → Utilization

Features
To access the report, on the SAP Easy Access screen, choose Indirect Taxes → Sales/Outbound Movements → Fortnightly Payment.

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Selection
On the selection screen, enter data as required: • • • Organizational data (in the General data group box) Posting date for the CENVAT payment, if it is different from the run date The period to be covered by the report (for example, 1–15 January)

If, for any reason, you want to select an excise invoice individually, you can do so. Any entry in the Period field will be disregarded.

To display a list of all the excise invoices whose excise duty you have not yet remitted, choose Display pend. invoices. To display a list of only the excise invoices for a given period, enter the period in the Period fields, select Select pending inv. for period, and choose Display pend. invoices. You can also print the list of pending invoices. To display the last date when tax was remitted, choose Display last util. date (Display last utilization date). Output
For each sort of excise duty, the system shows you: • • How much you have to remit (Amounts payable group box) How much credit you have at your disposal on the appropriate CENVAT account (Available balances)

This figure is equal to the credits on the CENVAT account less the minimum balance.
• How much credit you have on the CENVAT accounts (G/L account balances) You now have to specify which accounts can be used to utilize the duty amount. In the Balance Utilization group box, the system proposes how much money should be taken from which accounts. You can overwrite these fields if you want, and choose to refresh the display. For a list of excise invoices that are considered for the CENVAT payment, choose Display excise invoices. You can print the list and use it as an annexure. When you have finished, save your entries. The system then: • Creates an accounting document that:

Credits the CENVAT clearing account to remove the excise duty owed Debits the accounts from which the excise duty is to be paid
• Updates the Updates the Part II register

Value Added Tax (VAT)
Use

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Else.If your buyer belongs to a state where VAT is not levied. a month).India Page 5 of 224 In India. VAT Number has to be printed on the excise invoice. and your VAT liability is calculated by deducting input tax credit from tax collected on sales during the payment period (say.000 Output tax payable = INR 20. execute the following activities in the IMG under Cross- file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Configuration for Official Document Numbering Purpose Official Document Numbering is used to to print the numbers serially and separately for Bill of Sale (BOS). configure the tax procedure TAXINN. Features The essence of VAT is that you can set off the input tax against the tax paid earlier. VAT is based on the value addition to the goods.000 Output sold in the month = INR 2.00. During billing. Prerequisites You can configure the following tax procedures: • • For Condition-Based Excise Determination. VAT has been levied in certain states from April 1. see Configuration of Tax Calculation Procedure TAXINJ. 2005. surcharge. turnover tax. For more information about TAXINJ. For Formula-Based Excise Determination. Bill of Sales Number has to be printed on the excise invoice.000 Input tax paid = INR 4.000 and your sales are worth INR 2. additional surcharge.000 The excise invoice that you capture contains one of the following: ● VAT Number – If your buyer belongs to a state where VAT is levied. Value Added Tax (VAT) invoice. These numbers have to printed serially and separately for Bill of Sale. the system generates a Bill of Sale number. credit and debit notes. configure the tax procedure TAXINJ. then input tax credit/set-off and calculation of VAT will be as follows: ● ● ● ● ● Input purchased within the month = INR 1.000 VAT payable during the month after set-off/input tax credit = INR (20. and input tax rate and output tax rate are 4% and 10% respectively.000) = INR 16.00. You have purchased input worth INR 1. VAT invoice. see Configuration of Tax Calculation Procedure TAXINN. ● Bill of Sale Number .000 in a month.htm 10/13/2007 . credit and debit notes.00. You can do this using the Official Document Numbering.000 – 4. the system generates the VAT number if the VAT Registration number is maintained in customer master in the Tax Code 2 field. VAT is levied instead of the Local Sales Tax (LST). Process Flow To configure the Official Document Numbering for India.00. VAT also replaces other taxes such as. For more information about TAXINN.

Only the amount of service tax that is actually received (credits) by the customer can be offset against the tax payable. You can take credit for only the amount in the final General Ledger Account. B for Bill of Sale.htm 10/13/2007 . for example. This is a deferred tax. An education cess of 2% is applicable on the service tax. you should have separate account postings to different General Ledger Accounts based on service registration number. Maintain different document classes to generate different number ranges. you should define separate General Ledger Accounts for service tax and education cess on service tax. Assign the Number Range to a combination of Business place. customers and your own plants. It is applied on the total price of the service. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Maintain the Number Group. If there are multiple tax registration numbers. To do this. You can do this provided you have maintained a separate tax code for each service registration number. The interim General Ledger Account contains the total service tax that you have to receive. V for VAT Invoice. Assign the document class for the VAT and BOS to the Document Type. Service Tax Use This is a tax that is levied on the services rendered.India Page 6 of 224 Application Components → General Application Functions → Cross-Application Document Numbering → Taiwan. The final General Ledger Account contains only the actual amount that you have received. Define Business Places for different plants. Features Service tax has the following features: • • • It is charged at 12% on the price of the service rendered. Assign Business Place to Sales Office. you must also have maintained the tax registration numbers of your vendors. for every service registration number. Document Class and Number Group. Prerequisites In addition to the standard Implementation Guide (IMG) settings for taxes on service tax. Maintain the Number Ranges for the Number Group.

This tax is payable to the Central Government. A percentage of input LST can be deducted against output LST.224.000. between Karnataka and Tamil Nadu) are subject to central sales tax (CST). The system calculates the sales taxes automatically. You have to manually update the final General Ledger Account with this amount. customers. Education cess is INR 24. when you enter the tax codes. Prerequisites In addition to the standard Implementation Guide (IMG) settings for taxes on sales and purchases. Interstate sales (for example. Sales Tax Use This is a tax levied on the sale of a product. The tax rate is the same throughout the country. which differ from state to state. depending on what percentage of goods you have purchased in the state in question.htm 10/13/2007 . The system updates the interim General Ledger Account with this amount.200. out of which INR 500 is against service tax. Features To access the report. fill out the following data: • • Organizational data General selections file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.India Page 7 of 224 • • Service tax can be used to set off excise duty paid by you. assume that the customer makes a part payment. Example The price of the service is INR 10. Service tax that is applicable is INR 1. A report is also available that tells you how much sales tax you have paid and collected. Additional duty of customs cannot be used to set off the service tax paid by you. This report also can serve as the basis of determining your local sales volume and central sales volume. You can also report how much input sales tax has been set off against the outputs. The system handles these using tax jurisdiction codes. Now. choose Indirect Taxes → Registers → Sales Tax → Sales Tax Register. You can offset only INR 500 against the payables in that month. are subject to local sales tax (LST). Intrastate sales. on the other hand. Sales Tax Register Use You use this report to see how much tax has been accumulated under the various tax codes and tax jurisdiction codes for a combination of conditions. you must also have defined this (see Material Master (Excise Data)). Features There are two types of sales tax. It is applied on the gross price of goods. inclusive of excise duty. you must also have maintained the tax registration numbers of your vendors. Selection On the selection screen. Total amount to be received by you is INR 11. Furthermore. and your own plants. if the state legislation allows you to offset input local sales tax (LST) against output LST. on the SAP Easy Access screen.

However. If you want to restrict the selection to specific locations. you must give careful consideration as to whether Extended Withholding Tax covers your requirements. fill out the Ship-from and Ship-to fields. • General selection Specify which taxes you want the report to cover. the act also requires you to make provisions for taxes on services received but not yet invoiced. however. the formats for the withholding tax certificates and the returns also differ. These functions allow you to: • • • • Ensure that you remit taxes within the due date Track and report withholding tax surcharges separately Adjust withholding taxes when you clear a down payment against an invoice Prepare withholding tax certificates and annual returns file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. you clear the down payment against it. If you are installing the SAP system for the first time. Then. 1961: • • • • • Payments to contractors and subcontractors (Section 194 C) Insurance commission (Section 194 D) Rent (Section 194 I) Fees for professional or technical services (Section 194 J) Interest other than interest on securities (Section 194 A) (only supported in the Extended Withholding Tax solution) Features Country Version India offers you two solutions for handling withholding tax (also known as tax deducted at source or TDS). we recommend that you use the Extended Withholding Tax solution. In addition. Withholding Tax Use Country Version India comes ready configured with all the settings you need to track and remit withholding taxes under the following sections of the Income Tax Act. if you make a down payment to a vendor before you have received an invoice from it. providing the taxpayer with a withholding tax certificate.htm 10/13/2007 . If you need more selection criteria. Before you decide one way or the other. Taxes withheld under each section are treated differently with regard to the time limits for remitting tax to the authorities. once the invoice arrives. When you prepare your annual returns. and filing an annual return. You can report either central sales tax or local sales tax by choosing a combination of ship-from and ship-to locations.India Page 8 of 224 Specify which documents you want the report to cover. use the dynamic selection fields. You can either use the Classic Withholding Tax solution or the Extended Withholding Tax solution. you withhold tax on the down payment. The Income Tax Act requires you to calculate taxes as soon as you enter an invoice. If you start working with this solution and it transpires that it does not cover your needs. Country Version India Country Version India complements the generic Classic Withholding Tax and Extended Withholding Tax solutions with additional functions that meet the needs of the Income Tax Act. SAP does not offer a strategy for migrating to Withholding Tax.

however. only one withholding tax code can be used for a down payment or invoice. This implies that an invoice cannot contain items with different withholding tax rates. Reporting file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. you can also prepare TDS returns. depending on whether the vendor is a legal person or a natural person. That is. On account of calculation at header level. but issue separate invoices for different tax rates.India Page 9 of 224 • Calculate withholding tax on provisions Classic Withholding Tax Use Under the terms of the Income Tax Act. companies have to instruct their suppliers not to include items with different withholding tax rates in a single invoice. In addition. Use Customizing Define the recipient types in Customizing for Financial Accounting (FI). by choosing Financial Accounting Global Settings → Withholding Tax → Withholding Tax → Basic Settings → Maintain Types of Recipient.htm 10/13/2007 . or TDS) when you post a vendor invoice. It can. Features The withholding tax for an invoice or a down payment is calculated at header level. such as withholding tax certificate printing and annual returns. This can be handled by specifying the base amount on which withholding tax is to be calculated. enter CO or OT in the Recipient Type field. The system calculates withholding tax at the time of payment. for the purposes of withholding tax reporting. The system also allows you to print TDS certificates for vendors. To handle this difference in the calculation of the tax and to incorporate additional requirements. you are required to calculate withholding tax (tax deducted at source. Create two entries as follows: Recipient type CO OT Text Companies Others Master Data When you enter the withholding tax types and codes in the vendor master. contain one or more items with the same withholding tax rate and one or more items with no withholding tax. and to reprint or cancel them if necessary. Recipient Type Definition A system object that you use to classify payment recipients as legal persons or natural persons. additional functions are provided.

Output The system displays a list of invoices and specifies whether there are any down payments to be cleared against them. To access the program. in update mode.India Page 10 of 224 The annual returns separate the information about taxes withheld on legal persons and on natural persons. 3. from the SAP Easy Access screen. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Features Selection On the selection screen. you can clear an invoice against a down payment as follows: 1. then once you are satisfied with the results. Prerequisites You have already entered the invoices and the down payments. Calculate Tax Deducted at Source Use You use this program to calculate withholding tax on vendor invoices. TDS Date This is the posting date that the system enters in the TDS document (update mode only). Activities In the output list. It you have already posted a down payment for an invoice and withheld tax on it. . the system automatically takes the tax already paid into account. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax → Tax Deduction at Source: Classic. enter the following data: Run Program in Test Mode We recommend that you first run the program in test mode.htm 10/13/2007 . Process Invoices Only Select this if you want to post TDS for a specific invoice. Save the down payment. Select the down payment that you want to clear. Position the cursor on the invoice that you want to clear the down payment against and choose 2. It speeds up the response time.

the system calculates TDS for the amount stated on the credit memo and debits it from the TDS payable account. 2. If you have already remitted the TDS from the invoice.India Page 11 of 224 The system: Creates an accounting document to clear the down payment and reduce the vendor liability Recalculates the withholding tax base amount and the withholding tax amount. You will have to make a manual FI posting to transfer the amounts from the respective withholding tax accounts (as defined in the withholding tax line items) to the TDS government payable vendor account. Making Down Payments on Invoices Where TDS Has Been Calculated Use If you have withheld TDS on an invoice but not yet remitted it to the government. Procedure 1. you can display the document of the TDS posting. To make the payment to the TDS government payable vendor account. You can then clear them by choosing Financial Accounting → Accounts Payable → Document Entry → Down Payment → Clearing. You post the TDS in test mode. You can also clear invoices against down payments by first taking a list of all the invoices listed above by choosing . and then clear each invoice one by one. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Handling of Credit Memos Use This procedure shows you what happens if you post a credit memo against a vendor invoice. you have to adjust the tax amount accordingly. You post a credit memo. the credit memo against that invoice is not considered at all for processing. telling you to run the program in update mode. You post the TDS in update mode. choose Accounting → Financial Accounting → Accounts Payable → Document Entry → Outgoing Payment → Post. from the SAP Easy Access screen. Otherwise. 3.htm 10/13/2007 . and the invoice needs to be cleared against a down payment. entering with the invoice number as the reference number. based on the amount of the down payment against which the invoice was cleared. The system displays a message. The system makes the appropriate posting and displays the number of the credit memo along with the TDS posting document. By clicking on the document numbers.

enter the challan details. The actual TDS amount and the surcharge on this TDS amount are shown separately. Remittance Challans Use When you have remitted the deducted TDS to the government. The system allows you to record the number of the challan in the invoices from which the TDS had been deducted and paid. if necessary. you also have to reverse the TDS postings. Reversing TDS Postings Use If you reverse an invoice or down payment that you have already calculated TDS on. The next time you run the TDS posting program in update mode. from the SAP Easy Access screen. you can enter the TAN number when file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Clear the down payment against the invoice using the standard clearing transaction. The system then records the challan number in each of the transactions. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax → Enter Remittance Challans. If you need to change a challan number or date. Selection The system displays the transactions on which you have withheld TDS.India Page 12 of 224 Prerequisites You have posted the invoice and the TDS document has been created. the system makes a posting to correct the TDS. Features To access this report. Procedure 1.htm 10/13/2007 . You can also use this function to change the challan number or date later on. you are sent a bank challan confirming that payment has been received. It also displays the numbers of the down payment clearing document and the TDS document. enter the challan number and date that is to be changed. Procedure When you reverse a down payment in the standard. 2. You select the transactions for which you have remitted the TDS. the system automatically reverses the TDS posting. When you reverse an invoice. To handle cases where the company needs to have many TAN numbers. the system reverses the TDS posting the next time you run the TDS report in update mode. by debiting the G/L account associated with the entered tax code.

file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. you must have maintained the sections as a combination of section and business area. for example. including: The dates of the transactions that are to be covered in the certificate Withholding tax section If you enter the business area in combination with the section. It covers the TDS in all the invoices and down payments that you have posted over a specified period.htm 10/13/2007 . from the SAP Easy Access screen. it must also be used in all other transactions involving this certificate. you could maintain the section as 194C0001. including annual returns. There is a separate print program for one-time vendors. The number will be assigned only when the certificate is actually printed directly (not from the print preview). Features Selection Enter data as required. which you can access from the SAP Easy Access screen. This number will be used subsequently for the certificates. the system displays a certificate without any certificate number. A summary of all the certificates is printed at the end. The certificate printing program uses SAPscript form J_1ITDSCERT. Only transactions with a challan number can be included in certificates. If there are some changes in the certificate format this layout set can be changed accordingly. with a unique number range per business area. Print Certificates Use You use this program to print TDS certificates for your vendors (individually or in batches).India Page 13 of 224 you update the challan number. Prerequisites You have already remitted the TDS to the government and recorded the challan number in the transactions concerned (see Update of Challans). To access the program. summarized by certificate and challan number. so for business area 0001 and section 194C. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax → Certificates → Print → Vendors. by choosing Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax → Certificates → Print → One-Time Vendors. If the certificates are to be divided by business area. Output If you select the preview option.

Archiving of TDS Documents Use You use these functions to archive documents for tax deducted at source (TDS). choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax → Certificates → Reprint. from the SAP Easy Access screen. see Introduction to Data Archiving. To access the program.htm 10/13/2007 . Prerequisites file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. from the SAP Easy Access screen. including the number of the certificate that you want to cancel. Features Selection On the selection screen. enter the numbers of the certificates that you want to reprint and the details of the signatory. It does not delete it from the database. For more information about archiving. Output The system marks the certificate as canceled.India Page 14 of 224 Reprint Certificates Use You use this program to reprint TDS certificates. Output The system prints the certificates. Cancel Certificates Use You use this program to cancel TDS certificates. Each certificate is marked as a duplicate. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax → Certificates → Cancel. To access the program. Features Selection Enter data as required.

Finally. which is supplied with Country Version India (CIN). In the Object Name field. you must have archived the related data form Financial Accounting (FI) and Material Management (MM). Choose Create. 2. J_1ITDS. Once you have deleted the originals. You can create a variant if you need to. the system displays the name of the archiving object. you must delete the originals from the database. Package file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Once you have archived the TDS documents. Choose . 4. 4. To specify when to start the report. Enter a variant name of your choice. Creating an Archive Report Variant 1. Features The TDS documents are archived using archiving object J_1ITDS.htm 10/13/2007 .India Page 15 of 224 Before you can archive this data. 5. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax → Utilities → Archive Documents. From the SAP Easy Access screen. choose Spool Params. choose Start Date. 3. you can reload them from the archive file. Choose Maintain. 3. Delete in test mode Select this for test runs. 2. you can also analyze them. Enter data as follows: Variant Enter the report variant that you want to use. To enter the print parameters. User Name Enter the name of user who will archive the data. Specify which certificates you want to archive and enter other data as required: Create Specifies that the program will run in update mode. It is used for archiving the data in tables J_1ITDS and J_1ICERTIF. Archiving TDS Documents 1. Choose Archive. 6.

Reloading TDS Documents 1. To specify when to start the report. You can create a variant if you need to. Choose Delete. To specify what archive file you want to reload the documents from. 4. choose Spool Params. Save the variant. 8. Choose Attributes. From the SAP Easy Access screen. enter the name of user who will delete the documents. In the User Name field. 5. In the Object Name field. 6. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax → Utilities → Archive Documents. the system displays the name of the archiving object. choose Spool Params. In the Object Name field. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax → Utilities → Archive Documents. 2. 7. From the SAP Easy Access screen. Choose . 3. 6.India Page 16 of 224 Enter the optimum package size. 8. Deleting TDS Documents 1. 5. Archive Selection. 4. choose 5. To enter the print parameters. choose To specify when to start the report. User Name Enter the name of user who will reload the data. This will report any inconsistencies between the table data and the archive file that can be fixed. Choose Reload. 2. Enter data as required. Go back to the Archive Management: Create Archive Files screen. J_1ITDS. Enter data as follows: Variant Enter the report variant that you want to use. choose Start Date. 6. choose Start Date. 7. 3. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 . Comments Enter any comments for your own reference. J_1ITDS. the system displays the name of the archiving object. Archive selection. Select Test Run if you do not want to run the report in update mode. To enter the print parameters. To specify what archive file you want to delete the documents for.

each of which is identified by a separate TAN.India Page 17 of 224 7. the section code. you can withhold and report tax under all sections of the Income Tax Act listed in Withholding Tax. Activities To access the report. from the SAP Easy Access screen. Features Using the Extended Withholding Tax solution. Features Selection On the selection screen. business area. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax → Utilities → View Archived Documents. The country-specific features are described in the following documentation. Transaction Codes for Classic Withholding Tax Transaction Code J1INC J1I8 J1ICCERT J1ICOTV J1ICREP J1ICREP J1INEFILE J1IHBK J2ID J2IE Action Post withholding tax on invoices Enter remittance challans Print withholding tax certificates for vendors Print withholding tax certificates for onetime vendors Reprint withholding tax certificates Cancel withholding tax certificates Prepare TDS returns Copy bank IDs from invoice to TDS document Archive TDS documents Display archived TDS documents Extended Withholding Tax Use Country Version India contains a number of features that complement the generic Extended Withholding Tax solution. For information about the generic functions. and TDS certificate number. you use a separate SAP organizational unit to represent each entity. see Extended Withholding Tax. you specify which TDS documents you want to view. Choose . Since a company may consist of more than one entity responsible for withholding taxes. You can make your selection by vendor. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Archive Overview Use You use this report to find out where you have archived a tax deducted at source (TDS) document.htm 10/13/2007 .

as per the Income Tax Act You must also customize your own section codes. The settings include: • • • • Withholding tax types Withholding tax codes Official withholding tax keys. as proof of tax that they have withheld on payments to you. When you enter a vendor invoice or make a down payment that is liable to withholding tax. See also: Accounts Payable (FI-AP) Accounts Receivable (FI-AR) Section Code file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Country Version India comes with sample Customizing settings for all of the aforementioned sections of the Income Tax Act. The system automatically tracks each withholding tax item's remittance challan and bank challan. the bank sends you a bank challan to confirm the payment. you also enter withholding tax certificates sent to you by your customers. Once the check has been cashed. with receivables. Since different taxes need to be remitted on different dates. the system also calculates and records each line item's due date. if you make interest payments to your customers. Again. If you first make a down payment (and withhold tax on it) and then enter the vendor invoice later on. Periodic Processing At the end of each period. When you have remitted the tax. which represent the categorization of taxpayers into "companies" and "others. see Settings for Extended Withholding Tax: Overview. you have to clear the invoice against the down payment so that you do not withhold tax on the same item twice. Reporting Country Version India offers a report that you can use to prepare annual returns. whichever comes first. You then enter the bank challan in the system. Master Data Enter the required information in the vendor masters and in the customer masters. As far as your receivables are concerned. including surcharges." again. you can print out withholding tax certificates for all taxes that you have withheld. First. you can also check for any customers that have not yet sent you a withholding tax certificate for tax that they have withheld from you. Day-to-Day Activities You are required to calculate taxes either when you enter an invoice or when you make any sort of payment. which represent the different sections of the Income Tax Act Recipient types.htm 10/13/2007 . you create a remittance challan with a list of the withholding tax items that you are remitting. depending on the section of the Income Tax Act.India Page 18 of 224 Activities Customizing For generic information about customizing Extended Withholding Tax. the system automatically creates line items for the appropriate taxes. Since a full payment is seldom made before the invoice arrives. that means in effect that you withhold taxes when you enter an invoice or a down payment. along with the check. and a Withholding Tax Information System for tracking and reporting purposes. you make provisions for taxes on services received. The authorities in India require you to remit taxes following a specific procedure. using functions specific to Country Version India. you must also withhold tax on them as appropriate. Before you create your annual returns. You then send the challan to the authorities.

see Entering Vendor Invoices. Reporting Each TAN holder files its own tax returns. Defining Withholding Tax Use Customizing You define withholding tax types in Customizing for Financial Accounting (FI). you enter the TAN holder’s section code on the selection screen. a vendor invoice or a credit memo). When you have defined the withholding tax types. The certificate supplied with the standard system also shows the address data from the section code. enter the section code in order to make sure that the tax item is assigned to the correct TAN. by choosing Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Basic Settings → India → Define Section Codes. Use Customizing Define section codes in Customizing for Financial Accounting (FI). For generic information about withholding tax types. so in the SAP system. as identified by a TAN. we recommend that you create a validation for this field. by choosing Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Calculation → Withholding Tax Type → Define Withholding Tax Type for Invoice Posting and … → Define Withholding Tax Type for Payment Posting. depending on which format is required by the income tax office. each of your section codes can define its own forms. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. one for basic-rate tax and one for the surcharge. Both sets contain two separate tax types for each of the supported sections of the Income Tax Act (see Extended Withholding Tax). define the withholding tax codes and recipient types.htm 10/13/2007 . Each company can have more than one TAN. Periodic Processing When you print withholding tax certificates. For more information.India Page 19 of 224 Definition A system object that represents the organizational unit responsible for collecting and remitting withholding tax. a company code can also have multiple section codes. In order to ensure that you always enter a section code. Country Version India comes with one set of sample withholding tax types for calculating tax at invoice posting and another one for calculating tax at payment posting. The annual returns then show only the withholding tax items that are assigned to that section code. Day-to-Day Activities When you post a document with a withholding tax item (for example. When you prepare a TDS return. Withholding Tax Type Definition See withholding tax type. All of the withholding tax types are customized so that certificate numbers are not assigned at this level. see Types. They are assigned by the programs that you use for printing the withholding tax certificates instead.

when you enter a vendor invoice). The basic-rate withholding tax codes are set to 2%. the system automatically applies the tax type and tax code appropriate to that vendor or customer. For reporting purposes. Country Version India comes with a sample tax code for each of the sample withholding tax types provided. Use Customizing Define the withholding tax codes in Customizing for Financial Accounting (FI). This information is required in TDS returns. Observe the special procedures when you customize withholding tax codes for Section 194 A of the Income Tax Act (see Exemptions and Reduced Rates for Section 194 A). by choosing Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Calculation → Withholding Tax Codes → Define Withholding Tax Codes. see Defining Withholding Tax Codes. See also: Accounts Payable (FI-AP) Accounts Receivable (FI-AR) Withholding Tax Key Definition A system object that you use to classify withholding tax items according to which section of the Income Tax Act they belong to. Day-to-Day Activities When you enter a document that is liable to tax (for example. the surcharge tax codes are set to 0. Master Data Assign the appropriate withholding tax codes to your vendor masters and customer masters.India Page 20 of 224 Master Data Assign the appropriate withholding tax types to your vendor masters and customer masters. assign each withholding tax code to a withholding tax key. when you enter a vendor invoice). otherwise you cannot clear down payments against invoices or remit withholding taxes. Day-to-Day Activities When you enter a document that is liable to tax (for example.4%. Use Customizing file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. See also: Accounts Payable (FI-AP) Accounts Receivable (FI-AR) Withholding Tax Code Definition For generic information about withholding tax codes.htm 10/13/2007 . You must use withholding tax codes with posting indicator 1. the system automatically applies the tax type and tax code appropriate to that vendor or customer.

you have to declare how much interest you have paid to companies without withholding tax or with reduced-rate tax. if the recipient of the payment is a bank or is a company in possession of an exemption certificate. Exemptions and Reduced Rates for Section 194 A Use Under Section 194 A of the Income Tax Act. Since each withholding tax code is also assigned to an withholding tax key. For each withholding tax type. Make the additional settings for the withholding tax codes in Customizing for Financial Accounting (FI). by choosing Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Calculation → Exemptions and Reductions. with the exception of interest on securities. Recipient Type Definition A system object that you use to classify payment recipients as legal persons or natural persons. Use Customizing Define the recipient types in Customizing for Financial Accounting (FI). Reporting When you prepare a TDS return. for the purposes of withholding tax reporting. assign it a withholding tax code as normal.India Page 21 of 224 Check the withholding tax keys provided in Customizing for Financial Accounting (FI). Enter the recipient type in each vendor master and each customer master. When you prepare your annual return. Assign an official withholding tax key to each withholding tax code. the system automatically knows which section of the Income Tax Act you have withheld the tax under.htm 10/13/2007 . You declare such taxes withheld using form 26A. you only have to withhold tax at a reduced rate – for example. by choosing Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Basic Settings → Check Recipient Types. Reporting The TDS returns separate the information about taxes withheld on legal persons and on natural persons. create two entries as follows: Recipient Type CO OT Master Data Text Companies Others Country Version India comes with sample settings for the sample withholding tax types provided. Day-to-Day Activities Whenever you post a withholding tax item. it shows which section of the Income Tax Act you withheld each item under. However. by choosing Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Basic Settings → Define Withholding Tax Keys. Activities Customizing Define separate withholding tax codes for calculating withholding taxes at the reduced rates and for exemptions. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. some payments are exempt from withholding tax. you withhold tax on interest payments that you make. and on others.

See also: Withholding Tax Code Vendor Master (Withholding Tax Data) TDS Returns Surcharges Use As well as withholding tax on payments to vendors. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Others prefer you to combine the two in a single line item. you may also be required to withhold a surcharge. by choosing Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Basic Settings → India → Exemptions and Reductions. Features Some tax offices require you to track surcharges separately from the basic withholding tax. Exemptions and Reduced Rates Under Sections 197 and 197 A Use Under sections 197 and 197 A of the Income Tax Act. it shows how many rupees’ worth of business you have taxed at a reduced rate. it shows how many rupees’ worth of business you have taxed at a reduced rate.India Page 22 of 224 Master Data Enter the appropriate withholding tax codes in your customer masters and vendor masters as normal. that is. to create separate line items for the surcharges. Reporting When you prepare a TDS return.htm 10/13/2007 . and how much was exempt from tax. The system supports both calculation methods. Reporting When you create a TDS return. Activities Customizing Define separate withholding tax codes for calculating withholding taxes at the reduced rates and for exemptions. in India. and how much was exempt from tax. You need to record this information in the system and report it in TDS returns. Do not enter any exemption reasons. Make the additional settings for the withholding tax codes in Customizing for Financial Accounting (FI). make sure that you use the appropriate tax code. or reduce the withholding tax rates. Master Data Enter the appropriate withholding tax codes in your vendor masters as normal. Do not enter any exemption reasons. Day-to-Day Activities Whenever you post a withholding tax item that falls under this section of the Income Tax Act. the Income Tax Department can grant companies exemptions from having tax withheld from payments to them.

htm 10/13/2007 . Tax Due Dates Use When you enter a vendor invoice. the system automatically calculates any surcharges that apply. all of which you can customize: • Which section of the Income Tax Act the tax is from (represented in the SAP system by the official withholding tax key) Whether the vendor is classified as a company or not (in the system. specify whether. TDS returns show the surcharges separately. The following examples assume that the surcharge is 2% of the basic-rate withholding tax: Vendor Invoice with Surcharges Shown Separately Vendor Invoice with Surcharges Combined with Other Withholding Tax Items Reporting No matter which of the calculation methods you use. It either creates one withholding tax item or two. whether the tax office requires you to remit the tax a day earlier or a day later • • Activities Customizing Set up the due dates in Customizing for Financial Accounting (FI). by choosing Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Basic Settings → India → Surcharges. by choosing Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Basic Settings → India → Maintain Tax Due Dates.India Page 23 of 224 Activities Customizing Set up the surcharge function in Customizing for Financial Accounting (FI). In Customizing for FI. Create withholding tax types and withholding tax codes for the surcharges. under Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Basic Settings → India → Assign Factory Calendars to Section Codes. depending on how you have customized the system. The standard system comes with samples for both. the SAP system automatically determines what date you have to remit the withholding tax to the tax office and records it in the tax line item. the recipient type) In the event of the tax being due on a public holiday. Day-to-Day Activities file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Features There are several factors that influence the tax due date. you must remit the tax on the day before or the day after. in the event of the due date falling on a public holiday. Day-to-Day Activities When you enter a vendor invoice.

you have to enter a journal voucher (JV) to correct the error. by choosing Accounts Receivable and Accounts Payable → Business Transactions → Interest Calculation. which you can post manually. To calculate the interest. There are two types of output. Periodic Processing Execute the program as described in the documentation. the system automatically determines the tax due date and enters it in the tax line item. which calculates the interest and the Activities Customizing You have made the settings for interest calculation in Customizing for Financial Accounting (FI). use the amount of tax to be withheld. the system uses the tax due date. The program creates an accounting document as follows: It copies the section code from the customer line item to the withholding tax item.htm 10/13/2007 .India Page 24 of 224 When you enter a vendor invoice. by choosing Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Postings → India → Journal Vouchers. after you have entered and cleared a vendor invoice and you have discovered that you have posted the wrong amount of tax or that you have posted the tax using the wrong official tax key. The system either creates a batch input session. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Balance Interest Calculation program. In both cases. Withholding Tax on Interest Payments to Customers Use Under Section 194 A of the Income Tax Act you are required to withhold tax on interest payments that you make to customers. Periodic Processing When you come to create a remittance challan to remit the withholding tax. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Extended Withholding Tax → Journal Vouchers → Enter. To access the function. Journal Vouchers Use If. which you can process. you must ensure that each customer line item contains a section code. and calculates the tax due date (see Tax Due Dates). from the SAP Easy Access screen. or it displays the details of the interest to be posted. Prerequisites You have maintained the settings in Customizing for Financial Accounting (FI).

3. See also: Entering Journal Vouchers Entering Journal Vouchers 1. since. 5. you can reverse the original document using the generic functions. a vendor has provided you with some services but not yet sent you an invoice. Change the tax amount to the correct amount. choose Amount Correction or Tax Code Correction. you must take into account any tax that you have already withheld on any down payments that you have made. select the line item that you have changed and choose Simulate. In the Document Number field. you are required to make an adjustment entry for any accrued withholding taxes. payable by vendor Debit Loss account Tax payable account Vendor account Credit Vendor account Vendor account Tax payable If you have already remitted the tax to the tax office and you change the tax code so that it uses a different official withholding tax key. That means that if. This posting debits the loss account and credits the tax expense account. you make an adjustment entry for the taxes that you will withhold on the vendor payment. 2.India Page 25 of 224 Features You only need to create JVs to adjust withholding tax items and vendor items that you have already cleared. Enter other data as required and choose Check. When you make the entry. When you enter a journal voucher. the system creates an accounting document as follows: Type of change Tax refund to vendor (tax already remitted) Tax refund to vendor (tax not yet remitted) Tax increase. Otherwise. enter the invoice number. when you come to prepare your financial statements. Save the journal voucher. or change the tax code.htm 10/13/2007 . when you prepare your statements. Provisions for Taxes on Services Received Purpose In India. You do not need to adjust a tax item if you have already issued a withholding tax certificate for it and the vendor has accepted it. in this case. 4. the system makes a second posting to correct the tax under the right tax key. To check what adjustment posting will be made. the vendor can use this certificate to claim a refund from the tax authorities. Depending on what you want to change. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.

because they have two entries for the same amount of withholding tax. so you enter a provision for the withholding tax. The system creates the following accounting document: file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 2. you reverse the provision. you reverse the provision. It does not clear the provision against the invoice. In the evening. 4. so at this moment your accounts are actually incorrect. the vendor sends you the invoice. Process Flow 1. A clerk enters a purchase order for services to be provided. the vendor has not sent you an invoice. and the clerk system accordingly. the system automatically calculates how much tax you have to withhold when you pay the vendor.India Page 26 of 224 Once the vendor sends the invoice. You will be required to withhold tax on the payment. The system creates an accounting document as follows: You can now prepare your financial statements correctly. At month-end. When you enter the invoice. Prerequisites In Customizing for Financial Accounting (FI). 5. On 7 February. A vendor provides you with some services on 25 January. The system then automatically creates the following accounting document: enters the service receipt in the 3.htm 10/13/2007 . you have made the settings under Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Postings → India → Provisions for Taxes on Services Received. and you enter it in the system.

you put your accounts in order again. A list appears. Entering Provisions On the SAP Easy Access screen. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Extended Withholding Tax → Provisions for Tax on Services Received → Enter. vendors or purchase orders) Information relating to the posting document that the system will make the tax postings with Choose .India Page 27 of 224 By reversing the provision. such as company code and financial year The G/L accounts that you want to post provisions for Other information relating to the items that you want to adjust (for example. For each purchase order: Enter the tax type and tax code of the tax that has to be applied Use invoice tax types only. irrespective of whether you have already calculated tax on them The amount from goods receipts that you have already calculated tax on The amount on which tax still has to be calculated You now have to specify how much tax has to be withheld. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Enter the following information: Organizational data. Enter the section code.htm 10/13/2007 . which shows you per purchase the following: Column Open amount Open provision LC bas.amt (Base amount in local currency) Information The total amount of all services received that have yet to be invoiced.

If you have made a down payment on the purchase order. You send the challan to your bank with a check for the appropriate amount. Remittance of Withholding Tax Purpose You are required to follow a specific procedure when remitting withholding tax to the authorities. you create a remittance challan. On the selection screen. When you have entered all the data. 2. Process Flow When the time comes to remit a given sort of tax (see Tax Due Dates). if required. Choose . such as the company code The posting date of the invoices The posting period 3.India Page 28 of 224 Enter the business area. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Extended Withholding Tax → Provisions for Tax on Services Received → Reverse. save it. Prerequisites Before you remit your withholding tax. in order to avoid discrepancies in your data. you must have entered any provisions for taxes on services received. Reversing Provisions Use Follow this procedure to reverse provisions that you have made for taxes on services rendered. You can only reverse the provisions for invoices that you have received since you posted the provision. 5. reduce the tax base amount by this amount. Procedure 1. We recommend that you run this program every night in the background. From the SAP Easy Access screen. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. The system creates an accounting document to transfer the withholding tax items to the appropriate bank account. enter: Organizational data.htm 10/13/2007 .

It then creates an accounting document to clear these items from the withholding tax payable account to the bank account that you want to transfer the tax from. Remittance Challans Use The system allows you to create and cancel remittance challans for payables and receivables. This information may be required in order to substantiate your accounts. the system identifies which withholding tax items need to be remitted (see Tax Due Date). Features Accounting Documents When you create a remittance challan. Constraints The programs do not cover part payments of tax items or residual payments. such as company code and section code (TAN) file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Challan Numbers The system generates separate remittance challans for each tax office (section code) and each section of the Income Tax Act (withholding tax key) and numbers each one accordingly. It records the challan number in the withholding tax items for future reference. On the selection screen. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Extended Withholding Tax → Remittance of Withholding Tax → Create Remittance Challan or Accounting → Financial Accounting → Accounts Receivable → Withholding Tax → India → Withholding Tax for Payments to Customers → Remittance of Withholding Tax → Create Remittance Challans. Result You can create withholding tax certificates for the withholding tax items that you have remitted. Prerequisites You have made the Customizing settings in Customizing for Financial Accounting (FI). You enter the bank challan in the system. enter the following data: Organizational data.htm 10/13/2007 . When you do so. although you cannot display it directly from any of the system transactions. on the SAP Easy Access screen. the program records the bank challan number in every withholding tax item remitted.India Page 29 of 224 After a few days. the bank sends you a bank challan to confirm that it has received your check. by choosing Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Postings → India → Remittance Challans. Creating Remittance Challans To access the programs.

India Page 30 of 224 Which withholding tax items you want to remit We recommend that in order to get the most accurate selection. Double-click the credit entry for your bank account. choose Document → Simulate. The program displays a list with the details of the challan numbers generated and the tax remitted. for example. if you want to remit the tax for government bodies only. To update the overview. including any bank charges that you have entered. The system goes back to the line item overview. Change the amount so that it matches the total line items (from step 3) plus the bank charges. Basic withholding tax and surcharges are listed separately. Choose Document → Simulate. including any charges made by your bank for accepting the check Choose . Choose . Tax remittance information. which presents you with a selection of tax line items for clearing. you can do so. If you need to restrict the selection to a specific vendor or customer.htm 10/13/2007 . file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. To make it easier for you to select the open items. and an offsetting posting to deduct your bank account. Save the document. you enter a payment due date. The system displays an overview of the line items created so far. we recommend that you create a line layout that includes the following fields: • • • • Value Date (tax due date) Section Code Reference Key 3 (tax code and recipient type information) Text (information on down payment clearing tax transfer) Activate the items that you want to remit and make a note of the total in the Assigned field. The system calls the standard outgoing payment program.

however. Procedure 1. 3. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.India Page 31 of 224 Canceling Remittance Challans Purpose If for any reason an error occurs when you create a remittance challan. 2. Result The system: Cancels the remittance challan Creates an accounting document to reverse the postings made when you create the remittance challan Entering Bank Challans Purpose When the bank sends you a bank challan. one with the number of the document posted.htm 10/13/2007 . The system prompts you to specify what sort of reversal you want to make. This is the accounting document that the system created when you created the remittance challan. Specify which accounting document you want to reverse. Enter a reversal reason and choose . The system displays two dialog boxes. Choose . This function does not work. Choose Resetting and Reverse. you use this function to cancel the challan and reverse the accounting document. After you have closed the dialog box. The system stores the bank challan number in all remitted withholding tax items by way of proof that you have remitted the tax. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Extended Withholding Tax → Remittance of Withholding Tax → Cancel Remittance Challan or Accounting → Financial Accounting → Accounts Receivable → Withholding Tax → India → Withholding Tax for Payments to Customers → Remittance of Withholding Tax → Cancel Remittance Challan. 4. Procedure On the SAP Easy Access screen. 5. you enter the bank challan in the system. you go back one screen to display a list of the documents that you have reversed. From the SAP Easy Access screen. if you have already entered the bank challan (see Entering Bank Challans). choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Extended Withholding Tax → Remittance of Withholding Tax → Enter Bank Challan or Accounting → Financial Accounting → Accounts Receivable → Withholding Tax → India → Withholding Tax for Payments to Customers → Remittance of Withholding Tax → Enter Bank Challan.

Result The system: • Records the bank challan details in the remitted withholding tax items This information will be included in the vendor withholding tax certificates when you print them. Activities Customizing Make the Customizing settings for the programs in Customizing for Financial Accounting (FI). as required by law. Country Version India offers two programs that you can use to print withholding tax certificates.htm 10/13/2007 . The system allows you to print out the certificates on different SAPscript forms for every tax office and every section of the Income Tax Act. One-Time Accounts For one-time vendors or one-time customers. Each certificate shows all the withholding tax items belonging to that vendor of customer. by choosing file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. if required. if such information is available. Down Payments The system deducts credit memos and down payments from the invoices that they belong to. The address details are taken from the appropriate document for the vendor or customer. not in the print preview. one for vendors and one for customers.India Page 32 of 224 Enter data as required. Prerequisites You can only print the certificates once you have remitted the tax in question and entered the bank challans. such as your company code Remittance challan number Bank challan details Choose . Credit Memos. The program numbers the certificates. including: Organizational data. • Displays a list of the updated items Withholding Tax Certificates for Vendors and Customers Use You must present your vendor or customer with a withholding tax certificate within 60 days of the business transaction. the system prints a separate certificate for each tax office. The items are listed according to their bank challan number. Instead. Features Certificates The programs print a separate certificate for each vendor or customer. Any other tax items will not be included in the certificates. but only when you print the certificates directly. Separate programs are available for reprinting and canceling vendor certificates. You do not use the generic programs for printing withholding tax certificates. only one business transaction is printed. If you have had dealings with the same vendor or customer in more than one tax jurisdiction (tax office).

from the SAP Easy Access screen. Periodic Processing You print vendor withholding tax certificates and customer withholding tax certificates once monthly or once annually as required. grouped by certificate. If necessary. numbered consecutively Displays a list of all the certificates printed. To access the program. ignore the generic Customizing activities. and maintain your customers' and vendors' PANs (see Vendor Master (Country Version India Data) and Customer Master (Country Version India Data)).India Page 33 of 224 Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Postings → India → Vendor Withholding Tax Certificates. enter the following data: • • • • Organizational information. you can reprint and cancel withholding tax certificates for your vendors (but not for your customers). To access the program.htm 10/13/2007 . choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Extended Withholding Tax → Withholding Tax Certificates → Print. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Extended Withholding Tax → Withholding Tax Certificates → Reprint. Note that you can only reprint one certificate at a time. Features Selection On the selection screen. on the SAP Easy Access screen. Print Vendor Withholding Tax Certificates Use You use this program to print out withholding tax certificates for vendors. and that you cannot reprint withholding tax certificates for customers. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Master Data Maintain your section codes' address data. Since you do not need the generic programs for printing withholding tax certificates. your company code The section code and withholding tax key that you want to create forms for Details of the bank challans that you want to cover Information that is to appear on the certificates Output The program: • • Prints out the certificates. and section code Reprint Vendor Withholding Tax Certificates Use You use this program to reprint withholding tax certificates for vendors. for example. Deactivate certificate numbering in the withholding tax types. This data will be printed out on the certificates. challan.

your company code The section code and withholding tax key that you want to create forms for Details of the bank challans that you want to cover Information that is to appear on the certificates file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. from the SAP Easy Access screen. on the SAP Easy Access screen. To access the program. Note that you cannot cancel withholding tax certificates for customers. Features Selection On the selection screen. for example. choose Accounting → Financial Accounting → Accounts Receivable → Withholding Tax → India → Withholding Tax for Payments to Customers → Withholding Tax Certificates → Print. Features Selection On the selection screen.India Page 34 of 224 Features Selection On the selection screen.htm 10/13/2007 . To access the program. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Extended Withholding Tax → Withholding Tax Certificates → Cancel. enter the following data: • • • • Organizational information. enter the following data: Company code The number and date of the original certificate Print Customer Withholding Tax Certificates Use You use this program to print out withholding tax certificates for customers. enter data as follows: The company code The number and date of the original certificate Cancel Vendor Withholding Tax Certificates Use You use this program to cancel withholding tax certificates for vendors.

Features Selection On the selection screen. and section code Withholding Tax Certificates from Customers Use You use this program to enter the withholding tax certificates sent to you by your customers. the system clears the withholding tax to a G/L account that records how much tax your customers have withheld on your behalf.India Page 35 of 224 Output The program: • • Prints out the certificates.htm 10/13/2007 . The information from the certificate When you execute the program. choose Accounting → Financial Accounting → Accounts Receivable → Withholding Tax → India → Tax Withheld by Customers → Enter Certificate. by choosing Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Postings → India → Withholding Tax Certificates from Customers. the system takes you to the standard withholding tax line items are to be cleared. enter the official withholding tax key that you use for the section of the Income Tax Law in question. You then select which Output The system creates an accounting document to transfer the withholding tax from the G/L account for the withholding tax deducted by your customers to the customer tax creditable account. challan. known as the customer tax creditable account. To access the program. Prerequisites You have maintained the settings in Customizing for Financial Accounting (FI). numbered consecutively Displays a list of all the certificates printed. The numbers or posting dates of the documents that you want to clear The certificate date serves as the posting date and the document date. from the SAP Easy Access screen. grouped by certificate. enter the following data: Your company details In the Section field. clearing program. When you enter a certificate. You run the program immediately you receive a certificate from a customer. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. You can offset this tax against your income tax payable at year-end.

down payments. Withholding Tax Information System Use You use this report to gather information relating to the withholding tax transactions that you have carried out. choose . You can also use it for carrying out pending transactions like challan updates. Bank Challan Status Displays the bank challan update status (whether carried out or not) of all transactions for which challan updates have been carried out. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. The system automatically goes back to the Post with Clearing: Process Open Items screen. 2. Selecting Which Line Items to Clear 1. 6. 5. challan clearing documents) pertaining to withholding tax transactions. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Extended Withholding Tax → Information System → Withholding Tax. You can display the individual documents (invoices. it shows the tax amounts and whether or not the tax has been remitted. Double-click the line item. It shows whether or not a certificate has been issued for the transaction. Double-click the amounts that you want to clear. In the Amount field. 4.htm 10/13/2007 . For each document. bank challan updates. and certificate printing. 3. Features Selection On the selection screen. To access the report. from the SAP Easy Access screen. Save your entries. On the Post with Clearing: Process Open Items screen. Save the change. You can run this report at any stage in the withholding tax cycle in order to obtain the necessary information. enter the selection criteria as required and specify which report you want: Challan Update Status Displays a list of all documents involving withholding tax. you can do so using the standard reversal program. enter the amount of withholding tax as specified on the tax certificate.India Page 36 of 224 Activities If you need to reverse the clearing document. Certificate Status Displays the transaction details for which bank challans have been updated.

you can only process documents for one withholding tax section at a time. C. However. on the SAP Easy Access screen. which you then execute. you can create a remittance challan for various documents: Select the documents that you want to remit the tax on and choose Challan Update. The system takes you to the Enter Bank Challans program. In the Bank Challan Status report. which you then execute. The system takes you to the Print Withholding Tax Certificates program. you can enter a bank challan: Select the documents (in this case identified by the internal challan numbers) that you have been sent a bank challan for and choose Bank Challan Update. However. you can only process documents for one withholding tax section at a time. Activities Each report contains functions for processing the documents in the list. choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax or Extended Withholding Tax → Reporting → TDS Returns.India Page 37 of 224 Consolidated Report Lists all documents involving withholding tax. The system takes you to the Create Remittance Challans program. To access the report. However. and J of the Income Tax Act. as follows: In the Challan Update Status report. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. I. In the Certificate Status report. you can only a single internal challan at a time.htm 10/13/2007 . Transaction Codes for Extended Withholding Tax Transaction Code J1INJV J1INPR J1INUT J1INCHLN J1INREV J1INBANK J1INCERT J1INREP J1INCANC J1INCC J1INCUST J1INEFILE J1INMIS Action Enter journal vouchers Enter provisions for taxes on services received Reverse provisions for taxes on services received Create remittance challans Reverse remittance challans Enter bank challans Print withholding tax certificates for vendors Reprint withholding tax certificates for vendors Cancel withholding tax certificates for vendors Print withholding tax certificates for customers Enter withholding tax certificates from customers Prepare TDS returns Withholding Tax Information System TDS Returns Use You use the TDS Returns report to generate electronic TDS returns for sections 194 A. you can print withholding tax certificates: Select the documents that you want to print a certificate for and choose Certificate Printing. D.

Note that the report only covers withholding tax items that you have remitted to the authorities and for which you have entered a bank challan in the system. you can check which withholding tax items will be included in it. or generate an electronic TDS return file. Features Before you generate a TDS return. you generate a list using the report. In particular. by choosing Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax or Withholding Tax → Reporting → India. depending on whether you use Extended Withholding Tax or Classic Withholding Tax. if you have migrated from Classic Withholding Tax to Extended Withholding Tax during the course of the fiscal year. • Output Processing Options tab Specify whether you want to list the withholding tax items for inclusion in the return. the report covers all withholding tax items that you posted under both solutions.htm 10/13/2007 . Output Depending on what settings you make on the selection screen. Selection The selection screen breaks down as follows: • Withholding Tax Datagroup box Fill out either the EWT Section Code or the Withholding Tax (Classic) group box. you must have customized the withholding tax codes accordingly (see “See also” below). If you want to generate a file. fill out both group boxes. you have made the settings specifically for TDS returns in Customizing for Financial Accounting (FI).India Page 38 of 224 Use this report irrespective of whether you use the Classic TDS or the Extended Withholding Tax solution. • Statutory Signatory Details and Address Details tabs Enter your company’s details. 197. However. specify where you want the report to save it. The report saves this data in the electronic TDS return. the report: • Lists the withholding tax items for inclusion in the TDS return • Generates an electronic file at the location that you specify See also: Exemptions and Reduced Rates for Section 194 A Exemptions and Reduced Rates Under Sections 197 and 197 A Migration from Withholding Tax to Extended Withholding Tax file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. If you have migrated from Classic TDS to Extended Withholding Tax during the course of the fiscal year. or both. To do so. and 197 A. Prerequisites You have customized the withholding tax solution as described in Extended Withholding Tax or Classic Withholding Tax. So that the report can handle reduced-rate taxes and exemptions under Sections 194.

4. 3. You archive all of the cleared items. 2. Just before you start the migration. archive old documents. you have make the appropriate Customizing settings. But before you can do so. 3. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. and so on. You maintain your vendor master records. Migrating the Existing Transaction Data and Activating Extended Withholding Tax 1. Extended Withholding Tax. 5. Cleaning Up You clean up the system.htm 10/13/2007 . Ensure that no one can post any documents in the company codes during the withholding tax changeover. you block the users from working in the system. You set up the authorizations for the Migration Program. you do not need to take any action. you cannot use conventional invoice verification anymore. We recommend that you block your system for all end users and carry out the conversion runs at the weekend. You activate Extended Withholding Tax. 4. You make the Customizing settings for Extended Withholding Tax.India Page 39 of 224 Purpose This procedure shows you how to migrate from the Classic Withholding Tax solution (Classic TDS) to its successor. You implement Logistics Invoice Verification. Implementing Logistics Invoice Verification (MM-LIV) Use The customer carries out this step. 5. Follow the instructions given below. 2. Process Flow Preparations 1. In order for the existing documents involving with withholding tax items to be compatible with Extended Withholding Tax. Execute the Health Check Program You map the Classic TDS tax codes to the Extended Withholding Tax types and codes. You migrate the documents. You must also carry out the migration in a test system before you start work on your production system. After you have migrated. If you do not use invoice verification of any kind. you have to migrate the data. Classic TDS supports conventional invoice verification and Logistics Invoice Verification (MM-LIV) while Extended Withholding Tax supports only Logistics Invoice Verification.

could lead to serious problems when you migrate the documents. Procedure file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Accounts receivable or Accounts payable) Periodic processing 2. a system contains a hundred times more cleared items than open items.htm 10/13/2007 .India Page 40 of 224 Procedure Make the Customizing settings for Logistics Invoice Verification in the Implementation Guide (IMG) for Materials Management. so you can considerably reduce the time required for the conversion run by doing so. you must set up Extended Withholding Tax in the Implementation Guide for Financial Accounting. Archive the required cleared documents. Archive as many cleared items as you can. If. Customizing Extended Withholding Tax Use The customer carries out these steps. Procedure 1. Archiving Cleared Items The customer carries out this step. For more information about archiving documents. it will take a hundred times longer to convert the cleared items than to convert the open items. If you activate Extended Withholding Tax before converting the withholding tax data. Make the system settings described below. Do not activate Extended Withholding Tax yet. in turn. The number of cleared items managed in a system is usually much greater than the number of open items. choose Accounting Financial accounting General ledger (or Archiving Documents. From the SAP Easy Access screen. see the SAP Library under Cross-Application Components Archiving Application Data (CA-ARC) Financial Accounting (FI) Archiving Financial Accounting Data (FI) Archiving FI Documents . This could result in your system containing documents with both classic withholding tax and Extended Withholding Tax which. for example. Before you start the conversion of the withholding tax data. Documents that have already been archived are not converted. documents could be posted with Extended Withholding Tax. by choosing Invoice Verification → Logistics Invoice Verification.

In the IMG for FI. 2. Define the official withholding tax keys. Define Rounding Rule for Withholding Type c. Make the necessary settings for the required withholding tax types in the following activities: a. For example. Assign Condition Type to Withholding Tax Type Defining Withholding Tax Codes 1. choose Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Basic Settings → Define Official Withholding Tax Codes. Define Withholding Tax Type for Payment Posting. Define Withholding Tax Type for Invoice Posting b. Define the official withholding tax keys (also known as official withholding tax codes) for reporting withholding tax. 2.htm 10/13/2007 . 4. choose Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Calculation → Withholding Tax Codes → Define Withholding Tax Codes. In the Implementation Guide (IMG) for Financial Accounting (FI). you must also carry out the activity Define Formulas for Calculating Withholding Tax. 3. define the keys for the various sections of the Income Tax Act. Defining Minimum and Maximum Amounts Use Define. 2. and if necessary. If any of the withholding tax codes use formulas to calculate withholding tax.India Page 41 of 224 1. Defining Withholding Tax Types and Withholding Tax Codes Use Define all types and codes that you require for all countries that you want to implement Extended Withholding Tax in. Procedure file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 2. Define the minimum and maximum amounts per type and code. if necessary. 1961. the minimum and maximum amounts for the withholding tax codes and types that you have defined. Make any additional settings. choose Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Calculation → Withholding Tax Type. In the Implementation Guide for Financial Accounting. Define the withholding tax types and withholding tax codes. Defining Official Withholding Tax Keys 1. Procedure Defining Withholding Tax Types 1.

Make the account determination settings. choose Financial Accounting Global Settings → Maintain Authorizations. Making Additional Settings Now that you have defined the withholding tax codes and types. for example. choose Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Calculation → Minimum and Maximum Amounts. Make the required Customizing settings. you require the role TDS Supervisor or the authorization object J_1IEWTJV. choose Define or Maintain Min/Max Amounts for Withholding Tax Types. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. In the Implementation Guide for Financial Accounting. The authorization object J_1IEWTJV is in the India Version object class under the object name Authorization Check for JV.India Page 42 of 224 1. Once the withholding tax migration is completed. Setting Up Authorizations for Migration Use The customer carries out this step. In this activity.htm 10/13/2007 . take the precaution of withdrawing the change authorization for all the users involved. provided by SAP. make the remaining settings. including: Define the recipient types you need for your vendors and attach them to the appropriate vendor master records. Specify for each company code which withholding tax types they are allowed to withhold tax for. Do not activate Extended Withholding Tax yet. 3. This prevents the conversion being started while the system is being used for normal day-to-day activities. choose Define or Maintain Min/Max Amounts for Withholding Tax Codes. In order to execute the Migration Program. To define the minimum and maximum amounts for the withholding tax types. Blocking Users The customer carries out this step. Procedure 1. 2. you create authorization profiles for the people involved in the withholding tax migration. To define the minimum and maximum amounts for the withholding tax codes. 2. In the Implementation Guide for Financial Accounting.

so that the Migration Program will migrate the data correctly. in Customizing for Financial Accounting (FI). You can only execute the report for one company code at a time. Selection On the selection screen. Procedure 1. enter the following data: • Selection Criteria Specify which country and which company code you want to perform the health check for. Prerequisites You have carried out all the activities described under Preparations in Migration from Classic TDS to Extended Withholding Tax. Withholding Tax Migration Health Check Use You must execute this report before you proceed with the Migration Program. Ensure that all users involved in the withholding tax changeover have the appropriate access authorizations. Additionally. and master data must not be changed. choose Financial Accounting Global Settings → Withholding Tax → Withholding Tax Changeover → Withholding Tax Changeover India → Health Check. • Document Details In this group box. see under Activities below). Block your SAP System for all other users. If it is not possible to take measures to ensure that there are no users working in the system. you should block the users and the whole system throughout the organization.India Page 43 of 224 Use You must block the system for normal activities while the conversion is being prepared and carried out. You must run the report for each company code that you want to carry out the migration for. 2. otherwise your accounting documents and system settings may contain serious discrepancies. Restart the SAP System so that all users are logged off. or just the obligatory ones. Features To access the report. We recommend that you perform all of the checks. the report also displays a list of the documents that you will not be able to process any more after the migration. It makes sure that all the Customizing settings have been made properly (for a list of the checks. Documents must not be posted or processed. and the health check status for each company code must be OK.htm 10/13/2007 . you specify which sorts of documents you want the report to cover. Specify whether you want to run all checks. • Other Checks file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. and from which dates.

and execute the report again. and the settings are incorrect One check has been run on an optional Customizing activity. . Only when all activities are marked or will the report assign the company code the status OK. and some of the settings are incorrect Multiple checks have been run on an obligatory Customizing activity.India Page 44 of 224 Specify whether you want the vendor master records to be checked. and the settings are incorrect One check has been run on an obligatory Customizing activity. or . and the settings are correct Multiple checks have been run on an obligatory Customizing activity. and the tax code mapping from Classic TDS to Extended Withholding Tax. Output The output list shows: • • • The results of the Customizing checks The documents that cannot be processed after the migration The results of the vendor master checks • The results of the checks on the tax code mapping The key is as follows: Indicator Meaning One check has been run on an obligatory Customizing activity. and all of the settings are correct Process all of the activities marked .htm 10/13/2007 . Activities The report makes the following checks at country level: • • • • • • • Withholding tax country Official withholding tax key Withholding tax types Withholding tax codes Recipient types Tax due dates Rounding rules • Business transaction events And these at company code level: • • • • • • • • • • • • Company code global parameters Extended Withholding Tax has been activated Withholding tax codes are assigned to company code Accounts for withholding tax to be paid over have been defined Accounts for posting withholding tax and losses to be paid Clearing accounts liable to withholding tax Section codes have been defined Factory calendar has been assigned to section codes Creation of remittance challan Vendor withholding tax certificates Vendor master data Surcharge calculation file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.

From any screen. As soon as you have finished. Enter table J_1IEWT_MIGRATE and choose Maintain. However. it does not cross-check the withholding tax type against the appropriate vendor master record. Procedure 1. Procedure 1. the system converts the various documents (for example. Map the Classic TDS tax codes to the Extended Withholding Tax tax types and codes.India Page 45 of 224 Mapping Withholding Tax Types and Withholding Tax Codes Use You map the Classic TDS withholding tax codes to the Extended Withholding Tax withholding tax types and codes. activate Extended Withholding Tax for the company code in question. Under Extended Withholding Tax. the Migration Program assigns a document a withholding tax type that you have not assigned to the vendor.htm 10/13/2007 . In the Implementation Guide (IMG) for Financial Accounting (FI). Activating Extended Withholding Tax Use The customer carries out this step just before you migrate the data. you will not be able to process the document afterwards. you can then enter withholding tax for each withholding tax type that you have assigned it. during migration. Prerequisites Just before you start maintaining the vendor master records. payments). 4. Save your entries. 2. Maintaining Vendor Master Records Use Here. Make sure the withholding tax types in the vendor master record match those in the mapping table: When. 2. 3. it replaces any Classic TDS withholding tax types with the Extended Withholding Tax types and codes that entered in the mapping table. choose Financial Accounting Global Settings → Withholding Tax → Extended Withholding Tax → Company Code → Activate Extended Withholding Tax. you specify which withholding tax types apply to each vendor. the system will not display the appropriate fields. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Activate Extended Withholding Tax for each company code whose data you want to migrate. you can assign any number of withholding tax types to a vendor’s master record. choose System → Services → Table maintenance → Extended Table Maintenance. When you come to make a posting involving withholding tax for this vendor. during migration. Otherwise. If.

such as invoices. enter the following data: • Selection Criteria file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. The user exit provides the section code. The appropriate section code can be derived from this information. Features To access the program. and edit any that result in problems. • Data selection and validation There are two user exits available to choose and validate additional clearing documents and down payment documents. in Customizing for Financial Accounting (FI). after you have migrated to Extended Withholding Tax. You can either enter them by filling out the selection screen or using the user exit. Prerequisites You have carried out all the steps in Migration from Classic TDS to Extended Withholding Tax under Preparations and steps 1–4 under Migrating the Existing Transaction Data and Activating Extended Withholding Tax. down payments. For each vendor: Enter the relevant withholding tax types Enter the relevant withholding tax codes and select Liable. First check the documents to see if they will be migrated properly. This program migrates all documents involving withholding tax.htm 10/13/2007 . the system will treat them as though they were created using Extended Withholding Tax. migrate them. down payment clearing documents. For example. Selection On the selection screen. After the migration. business area. In order to execute the program. company code. Then. in order to activate it Enter the recipient type Enter any exemption information Withholding Tax Data Migration Tool Use This program converts documents created under the Classic TDS solution so that they are suitable for use with Extended Withholding Tax. you must have the role TDS Supervisor. You cannot go back and complete these steps after you have migrated the documents. when all the documents have been checked. and TAN number as input parameters.India Page 46 of 224 deactivate it. choose Financial Accounting Global Settings → Withholding Tax → Withholding Tax Changeover → Withholding Tax Changeover India → Migration Program. Procedure Make the changes in the vendor master records of all vendors that you have to withhold tax on. Integration The program contains two user exits: • Selecting the section code The section code is mandatory in down payments that are to be migrated. neither the Payment Program nor the Clearing Program will be able to work with Classic TDS documents. and TDS documents.

You must decide before you start on the migration if this is likely or not. Activities Migrate invoices. you execute the report in test mode. select this option. say that you have migrated an invoice. credit memos. and cleared items it has found in the company code that match your selection criteria Shows you how many vendor items and so on there are per Extended Withholding Tax code Checks the assignment of the Classic TDS withholding tax codes to the Extended Withholding Tax types and codes to see whether the characteristics of each combination of type and code for extended withholding tax correspond file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. specify which documents you want to migrate. you execute the program again. one of the reasons could be that the line item is not migrated. Decide on the appropriate section code entity to which the down payments pertain and choose from the list displayed. Migrate all open down payments so that tax adjustment on down payment clearing could happen along with clearing. the system picks up the associated clearing documents.India Page 47 of 224 In this group box. If you need to migrate a large number of documents. you must enter a section code or have it defaulted by means of a user exit. • Migration of Down Payments If you want to migrate down payments.htm 10/13/2007 . Output In the result screen. If you enter invoice document numbers. If you want to migrate down payments. clearing documents. Do not migrate the documents if the vendor has been paid and it is unlikely that you will have to reverse the payment. and TDS documents if you have not yet paid the vendor or if the payment is likely to be reversed. • Posting Run Select this indicator to execute the program in test mode. • Additional Selection Criteria Use these fields to refine your selection. Down payments are only migrated after you have checked them from the screen. open items. You can migrate invoices. If you do. the list shows all the open down payments. and TDS documents on the above live or previewed. If you then post TDS later on. The system: Shows you how many vendor items. When you come to run the Automatic Payment Program and the error Inconsistent withholding tax information occurs for a line item. we recommend that you process one small quantity at a time in order to improve performance. you must migrate the invoice again so that the TDS document is also migrated. If the status of a document changes. credit memos. For example. clearing documents. You then have to select the down payments and save them for migrating the data. Checking the Documents Use In this step. verify the invoices and credit memos and check them.

Check. Check the Customizing settings for Extended Withholding Tax. and delete them. with a list of the documents selected and any warnings. 2. Cleaning Up Use Once you have migrated the documents. 2. or whether you intentionally wanted the tax code to be deleted. 3. and choose . The output list appears. making sure that you have selected Test run for invoice/credit memo. in which case you have to make the relevant system settings again. This procedure does not apply to any other types of documents. Migrating the Documents Use In this step. check whether the codes have been deleted by mistake.htm 10/13/2007 . select the down payments that you want to migrate and save. Correct any errors and execute the report again. with a list of the documents selected and any warnings. which the Migration Program does not handle: file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. making sure that you have deselected Test run for invoice/credit memo. you execute the report in update mode. Fill out the selection screen. Check the documents for any discrepancies that could lead to problems later on. 2. The system migrates the documents from Classic TDS to Extended Withholding Tax. In the list. Procedure 1. edit. when you make postings for Extended Withholding Tax: Check whether any documents are missing withholding tax codes. and choose . Fill out the selection screen. The output list appears. there is some cleaning up to do in the sytem: Procedure 1. Check down payments to see if the migrated base and tax are correct.India Page 48 of 224 Procedure 1. Check whether any withholding tax codes exist that have not been used. If so. Note that this is the most time-consuming step. and save any of the following.

htm 10/13/2007 . The country template also contains settings for automatic accounting postings in most components. For generic information about FI-GL. It also takes into account the requirements of Schedule VI of the Companies Act 1956. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. The following documentation describes these aspects of the component. General Ledger Accounting (FI-GL) Purpose The General Ledger (FI-GL) component covers the most important laws and business practices specific to India. with the exception of Controlling (CO). release the system for the users. Release the system Once you have finished the migration and cleaning up activities.India Page 49 of 224 Recurring entry documents Sample documents Noted items 3. Use The country template for India comes with its own financial statement version. Chart of Accounts Definition See Chart of Accounts. Each of the headings is represented by an item in the financial statement version. see General Ledger Accounting (FI-GL). CAIN. You can use it to prepare financial statements in accordance with Schedule VI of the Companies Act 1956. BAIN. Use The country template for India comes with its own chart of accounts. Financial Statement Version Definition See Financial Statement Version. It contains all accounts common to most businesses in India. This act lists the headings under which the individual accounts are to be grouped. Features The country template for India comes with its own chart of accounts and a financial statement version.

and for each entry. see Authorization to Deduct Tax. Procedure 1.htm 10/13/2007 . From the SAP Easy Access screen. when you enter a vendor invoice in Accounts Payable (FI-AP). choose Accounting → Financial Accounting → Accounts Payable → Master Records → … Use Enter the withholding tax types and withholding tax codes that the vendor is liable to. see Accounts Receivable and Accounts Payable: Overview. The following documentation describes these aspects of the component. depending on whether the vendor is a legal person or a natural person. choose Accounting → Financial Accounting → Accounts Payable → Document Entry → Invoice. Place/Sectn: Your section code. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 2. including: Bus. For generic information about withholding tax data in the vendor master. For generic information about FIAP. Extra fields are available in the vendor master data for information required in India only. standard procedure and. you follow the in addition.India Page 50 of 224 Accounts Payable (FI-AP) Purpose The Accounts Payable (FI-AR) component covers the most important laws and business practices specific to India. Features Country Version India comes with a number of functions relating to withholding tax (see link below). Enter the header data as required. See also: Withholding Tax Vendor Master (Withholding Tax Data) Definition The part of the vendor master record where you record information about which taxes you have to withhold from payments to a vendor. See also: Vendor Master (Country Version India Data) Vendor Master (Excise Data) Entering Vendor Invoices Use In India. enter the recipient type. Defining Liability to Tax and To access the vendor master. you assign the invoice to the appropriate section code. on the SAP Easy Access screen.

Bus. when you enter a vendor down payment in Accounts Payable (FI-AP). On the Header Data screen. you must: • Remit the withholding tax The system automatically selects which withholding tax items need to be remitted on the basis of their tax due date. Save the down payment. Result The system creates an accounting document with the appropriate withholding tax items. you can enter a journal voucher to reverse the posting. Entering Vendor Down Payments Use In India. 3. enter data as required. choose Accounting → Financial Accounting → Accounts Payable → Document Entry → Down Payment → Down Payment. • Create a withholding tax certificate for the vendor If you post the wrong amount of tax or you have posted the tax using the wrong official withholding tax key. Pl. (Business Place): The section code handling the down payment 2. which it enters in the Value Date field (which is not shown on the user interface) When the time comes. in addition. you: standard • • Assign the down payment to the correct section code Calculate any withholding tax required Procedure 1.htm 10/13/2007 . On the SAP Easy Access screen. including: − 4. Enter other data and save the invoice. It enters the business file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Result The system: • • • Creates an accounting document with the necessary withholding tax items (including surcharges) Assigns all vendor items and withholding tax items to the section code that you have entered Assigns each withholding tax item a tax due date. enter the header data as required and choose On the Add Vendor Item screen.India Page 51 of 224 3. you follow the procedure and.

the system clears the withholding tax automatically. Once you have posted the vendor invoice. Example A vendor provides you with some services. Prop.India Page 52 of 224 place in each vendor item and each withholding tax item. which gives the following accounting document: file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. on the SAP Easy Access screen. the adjustment will be made against the offsetting account instead of the vendor account. for which it promises to send you an invoice in a few days' time. (Central invoice proportionate) A withholding tax code that uses the posting indicator 1 (Standard posting: bank/vendor/customer line item reduced) If you use either of the other two methods. otherwise the clearing program will not let you clear them. the vendor sends you the invoice.000. if the company code is located in India. Clear Invoices Against Down Payments Use If you withhold tax on a vendor down payment. you make a down payment on the services for a total of INR 10. clear the down payment against it. choose Accounting → Financial Accounting → Accounts Payable → Document Entry → Down Payment → Clearing. To access the function. Features This function has been incorporated into the standard function for clearing down payments (see Clearing). you must post the down payments using: • • A withholding tax type that is marked as Central Inv. for a total of INR 20. In the meantime. Day-to-Day Activities Make sure that the withholding tax codes you use when you enter the down payment and the invoice are assigned to the same withholding tax key.htm 10/13/2007 . presenting the vendor with a check for INR 9. When you clear an invoice against a down payment for an Indian company code. You post the invoice as normal.000 – on which you have to withhold a total of INR 408. and the vendor then sends you an invoice.796 and withholding the remaining INR 204 as tax: A week later. as is customary in other countries). Activities Customizing In order for the tax to be cleared correctly. you have to clear the withholding tax when you have entered the invoice (not when you pay the invoice.

and creates the following accounting document to clear the down payment against the invoice. Extra fields are available in the customer master data for information required in India only. see Accounts Receivable and Accounts Payable: Overview. choose Accounting → Financial Accounting → Accounts Receivable → Master Records → … For generic information about withholding tax data in the customer master. The system takes into account the INR 204 of tax that you have already withheld. For generic information about FIAR. see Authorization to Deduct Tax. The following documentation describes these aspects of the component.htm 10/13/2007 . Defining Liability to Tax and Use file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Features Country Version India comes with a number of functions relating to withholding tax (see link below). To access the customer master. from the SAP Easy Access screen. and clear the withholding tax account: Accounts Receivable (FI-AR) Purpose The Accounts Receivable (FI-AR) component covers the most important laws and business practices specific to India.India Page 53 of 224 You then clear the invoice against the down payment. See also: Withholding Tax Customer Master (Withholding Tax Data) Definition The part of the customer master record where you record information about which taxes you have to withhold from payments to a customer.

For more information about file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. For generic information about FIAA. (Withholding Tax Number) field. To access the report. See also: Customer Master (Country Version India Data) Customer Master (Excise Data) Asset Accounting (FI-AA) Purpose The Asset Accounting (FI-AA) component covers the most important laws and business practices specific to India.India Page 54 of 224 Enter the withholding tax types and withholding tax codes that the customer is liable to. Country Template The country template for India comes with the following settings: Chart of depreciation Depreciation keys as per the income tax laws For more information. see the following documentation. The following documentation describes these aspects of the component. Enter the recipient type in the W/Tax No. Year-End Income Tax Depreciation Report Use You use this report to calculate the depreciation on your assets and any capital gains or losses according to the Income Tax Act. choose Accounting → Financial Accounting → Fixed Assets → Information System → Reports on Asset Accounting → Taxes → Country Specifics → India → YearEnd IT Depreciation Report. Features Country-Specific Functions Country Version India comes with a report for calculating depreciation on asset blocks (asset groups) as required by law for calculating a company's taxable income. Prerequisites You can use the Customizing settings delivered by SAP in order to configure Asset Accounting (FI-AA) with respect to the income tax depreciation area and so that the report works correctly.htm 10/13/2007 . see Asset Accounting (FI-AA). from the SAP Easy Access screen.

it has an unrestricted useful life. the system also: Posts the depreciation to the income tax depreciation area Stores the capital gains amounts from the report in a table for your future reference. For example. Features Depreciation of Asset Blocks The Income Tax Act requires you to depreciate all assets in blocks (in the SAP System. for income tax purposes. Calculation of Depreciation Use The program calculates the depreciation on each asset block according to the Income Tax Act. New Assets Held for Less Than 180 Days If you purchase an asset less than 180 days before the end of the fiscal year. At the beginning of fiscal 20X1. see the Release Note structure under FI → Release Notes from Country Version India Add-On → Customizing Settings for Income Tax Act.000. You also calculate depreciation on the block’s net book value. you are only entitled to depreciate it at half of the normal rate of depreciation. you do not calculate the depreciation on each individual asset. as you add new assets to it.htm 10/13/2007 . an asset group has its own net book value.000. the trucks have a total net book value. the net book value has not changed. The total depreciation on all of the trucks is 10% of INR 300. The depreciation rate depends on the asset block and is prescribed by the government. The asset block’s net book value increases when you add assets to it and falls when you sell or retire assets. or INR 30. called asset groups). To continue the example. Output The system: Calculates the depreciation on each asset block Calculates any capital gains or losses If you deselect Test Run.000. Instead. assume your company has four trucks. The total net book value of the block at the beginning of 20X2 is therefore INR 270.000. Features Selection Enter the asset numbers of your group assets and other selection data as required. Since an asset block may exist for a very long time.India Page 55 of 224 what settings to make. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. of INR 300. on 1 June 20X2 you sell a truck for IN 30.000. In other words. with no acquisitions and no retirements. At the end of the year.

000 depreciation. the amount below zero constitutes a capital gain under the terms of the Income Tax Act. The system stores the capital loss amount in a table for your future reference. The following documentation describes these aspects of the component.000 – INR 210.000. the net book value of the block is still INR 2. even though there are no assets in it. INR 1. For example.000. Asset Retirements When you retire an asset. the net book value before depreciation is therefore INR 220. On 1 February 20X3 you sell one of the trucks for INR 50. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.India Page 56 of 224 On 31 March the following year. Capital Losses If you sell all the assets in a block.000.000. Capital Gains If the sale of an asset causes the value of the asset block to fall below zero. Materials Management (MM) Purpose The Materials Management (MM) component covers the most important laws and business practices specific to India. The following year.000 = – INR 12. For example. At the end of the year. On 1 April 20X2. you are not entitled to calculate any depreciation on it in that fiscal year at all. the value of the asset block goes down by the sale price.000.000 This makes a capital gain of INR 12. you can only post half of that. and you sell it for INR 10. Calculation of Capital Gains or Losses on Sales of Assets Use The system automatically calculates any gains of losses on sales of assets according to the Income Tax Act. Features If you sell an individual asset from a block.000.500.htm 10/13/2007 . For example. On 31 March 20X4 the system determines the asset block’s net book value as: INR 198. but the block still has a net book value. assume that you have an asset block of trucks. instead of posting INR 3. The system handles this requirement by taking half the acquisition cost and calculating depreciation on that. On 1 December you sell a truck for INR 210. on 1 April 20X3 the trucks’ total net book value is INR 198. Any gains or losses have to be taxed.000.000. if you have a block with only one asset valued at INR 12. the system posts this value as a capital loss. the trucks’ total net book value is INR 270. which the system stores in a table for your future reference.000. the net book value of the asset block is set to zero.

Another user (the excise supervisor) checks the excise invoice and posts it. It lists the goods and states how much excise duty applies on them.India Page 57 of 224 Features Country-Specific Functions Country Version India comes with functions for calculating. Excise clerks can capture incoming excise invoices using a dedicated transaction. remitting. You can enter incoming excise invoices in the SAP system for goods receipts arising from external procurement. you can prepare copies of all excise registers for submission to the excise authorities. warehousemen can capture them in the standard Goods Movement transaction. • Structure In the SAP system. in India. You can capture and post excise invoices in one or two steps. For these purposes. alternatively. depending on your business requirements. each delivery that your vendors make is accompanied by an excise invoice. This document is required as proof of the excise duty that you have paid. if your vendor purchased the goods from another vendor and was merely selling them on to you At line item level. a condition-based method and a formula-based method. that your vendor sends you when it delivers excisable goods. Your use the excise invoice to claim back the excise that you have paid from the excise authorities. or. Finally. subcontracting. the excise invoice lists the materials on the excise invoice. but the system does not yet create an entry in Part II of the appropriate excise register. the excise invoice consists of header data and line items. the excise clerk captures and posts the incoming excise invoice simultaneously. posting. You have to post these in the system. showing the following information: • Chapter ID • • • Quantity of materials Excise duty base amount Rates of excise duty file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. This means that the clerk enters the data. extra fields are available in the vendor master data and material master data for information required in India only. and reporting excise duty. and stock transfer. Use When you procure goods externally. Country Template The country template for India comes with settings for calculating and posting all forms of taxes from MM. you have one excise invoice for each goods receipt.htm 10/13/2007 . • In the two-step procedure. but see also Multiple Goods Receipts for a Single Excise Invoice. MIGO. and with the necessary document copying control settings. The header data comprises: • • • • An internal number The excise invoice number The date of the excise invoice The details of the original vendor who generated the excise invoice. The system creates the Part II entry automatically. Generally speaking. and for handling incoming and outgoing excise invoices. so that you can then offset the duty against the excise duty that you levy on outputs. In the one-step procedure. when they enter a goods receipt. Country Version India offers two ways of calculating excise duty. Excise Invoice (Incoming) Definition A business document. The system then creates a Part II entry. the excise clerk captures the incoming excise invoice.

There are three separate tabs. Features file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 . one for each sort of tax. Vendor Master (Country Version India Data) Definition The part of the vendor master record where you record information about a vendor relating to sales tax. and withholding tax. To access the material master. a purchase order. by choosing Taxes on Goods Movements → India → Master Data → Assign Users to Material Master Screen Sequence for Excise Duty. by choosing CIN Details. Use When you have entered the vendor that you want to process. the system automatically calculates the applicable excise duties using the condition technique. you can also maintain this data in the Excise Rate Maintenance transaction (see Vendor Master (Excise Data)). from the SAP Easy Access menu. choose Logistics → Materials Management → Material Master → Material → … The excise data is displayed in a separate group box on the Foreign Trade: Import Data and Foreign Trade: Export Data tabs. from the SAP Easy Access screen. choose Logistics → Materials Management → Purchasing → Master Data → Vendor → Central → …. Condition-Based Excise Determination Use When you enter a purchasing document. carry out the IMG activity in Customizing for Logistics – General. To access the vendor master. Use Customizing In order for the users to be able to see the excise data group box. you can access the excise data from every screen. excise duty. If you prefer.India Page 58 of 224 • Amount of duty paid Material Master (Excise Data) Definition The part of the material master record where you record excise information. for example.

Configuration of Tax Calculation Procedure TAXINN Purpose file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. TAXINN is only supports condition-based excise determination. or which chapter ID the vendor stocks the material under.India Page 59 of 224 The standard system comes with two tax calculation procedures. Master Data Create condition records for all excise duties that apply. for example. Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable. Control Code means "chapter ID. 3. Choose . . Enter data as required. The system then calculates the excise duties using the condition records you have created. enter FV11 and choose . enter the tax code for condition-based excise determination in each line item. Day-to-Day Activities When you enter a purchase order or other purchasing document. 2. When you come to enter a purchasing document. Creating Condition Records for Excise Duty 1. such as which vendor you purchase a material from. you post the goods receipt and the excise invoice. The system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice. the system applies the excise duty at the rates you have entered in the condition records. Enter the condition type that you want to create a condition record for and choose The Key Combination dialog box appears. Since the exact rates of excise duty can vary on a large number of factors. These activities include one activity where you define a tax code for condition-based excise determination. In the Tax Code field. Activities Customizing Make the settings in Customizing for Logistics – General." So. On the dialog box. to create a condition record for a tax that applies to a combination of country. select Country/Plant/Control Code. In the command field. you create condition records for every sort of excise duty. 6. 5. Select the combination of objects that you want to create the condition record for. whereas TAXINJ supports condition-based excise determination and formula-based excise determination. Save the condition record. 4. plant. enter the dummy tax code that you have defined. and enter the tax code for condition-based excise determination in each. by choosing Taxes on Goods Movements → India → Basic Settings → Excise Duties Using Condition Technique and … → Account Determination.htm 10/13/2007 . and chapter ID. When the ordered materials arrive.

India Page 60 of 224 TAXINN is a tax calculation procedure for country version India and it supports condition-based excise determination.htm 10/13/2007 . You need to configure this tax calculation procedure. Process Flow Execute the following steps in the Implementation Guide to configure the tax calculation procedure TAXINN: Procurement Set up the following Access Sequences in the the IMG under Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Basic Settings → Check Calculation Procedure → Access Sequences: JTAX JST1 Set up the Condition Types for the following conditions in the IMG under Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Basic Settings → Check Calculation Procedure → Define Condition Types: ○ MM Excise Conditions JMOP IN: BED setoff % JMOQ IN: BED setoff Qty JAOP IN: AED setoff % JAOQ IN: AED setoff Qty JSOP IN: SED setoff % JSOQ IN: SED setoff Qty JMIP JMIQ JAIP JAIQ JSIP JSIQ JMX1 IN: BED inventory % IN: BED inventory Qt IN AED inventory % IN AED inventory Qty IN SED inventory % IN SED inventory Qty IN: A/P BED setoff file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.

India Page 61 of 224 JAX1 JSX1 JMX2 JAX2 JSX2 JECP JECI JEX1 JEX3 IN: A/P AED setoff IN: A/P SED setoff IN: A/P BED inventor IN: A/P AED inventor IN: A/P SED inventor IN:A/P e-cess setoff IN: Eces inventory IN: A/P ecs setoffT IN: A/P ecs invT ○ LST/CST/VAT Conditions JIPS JIPC JIPL JIP5 IN Sales tax setoff IN Central sales tax invoice IN Local sales tax invoice A/P RM Deductible ○ Service Tax Conditions JSRT JEC3 A/P Service Tax A/P ECS for ST Define the Tax Procedure according to the settings in the figures below.htm 10/13/2007 . file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. You can do this in the IMG under Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Basic Settings → Check Calculation Procedure → Define Procedures.

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Set up the following Account Key in the IMG under Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Basic Settings → Check and Change Settings for Tax Processing. ○ VS6 Input Tax

Assign Tax Procedure to the country. You can do this in the IMG under Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Basic Settings → Assign Country to Calculation Procedure.
Sales

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Set up the Condition Types for the following conditions in the IMG under Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Basic Settings → Check Calculation Procedure → Define Condition Types: ○ Excise Conditions JASS JEXP IN A/R BED IN A/R BED

JEXQ IN A/R BED JEAP IN A/R AED %

JEAQ IN A/R AED Qty JESP JESQ JCEP JCEQ JEXT JEAT JEST JCET JECT IN A/R SED % IN A/R SED Qty IN A/R CESS % IN A/R CESS Qty IN A/R BED total IN A/R AED total IN A/R SED total IN A/R CESS total IN A/R ECS total

○ LST/CST/VAT Conditions JCST JCSR JLST JLSR IN A/R CST IN A/R CST Surcharge IN A/R LST IN A/R LST Surcharge

○ Export Conditions JFRE IN Frieght

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JINS

IN Insurance

Set up the Access Sequence in the the IMG under Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Basic Settings → Check Calculation Procedure → Access Sequences: Set up the following Pricing Procedures according to the settings in the figures below. You can do this in the IMG under Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define And Assign Pricing Procedures. ○ JDEPOT (IN:Depot sale with formula)

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○ JEXPOR (IN:Export sales with formula)

○ JFACT (IN:Factory sale with formula)

file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm

10/13/2007

India Page 67 of 224 ○ JSTKTR (IN:Stock transfer with formula) file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 .

For each permutation of plant indicator and vendor indicator. Vendor master data For each of your vendors with the same excise status from a legal perspective. You must also stipulate if the vendor qualifies as a small-scale industry. You must also specify the vendor type – for example. which you can access from the SAP Easy Access screen by choosing Indirect Taxes → Master Data → Excise Rate Maintenance. See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit). Customer master data file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. the system automatically calculates the duty for you. you must have maintained all the data on the Excise Rate Maintenance screen. you then create a final excise duty indicator. or a first-stage dealer. a depot. whether the vendor is a manufacturer. such as all those that are in an exempt zone. You maintain the following types of data: Plant master data You assign each of your plants an excise duty indicator.India Page 68 of 224 Formula-Based Excise Determination Use When you execute a business transaction involving materials that are subject to excise duty. You can use the same indicator for all the plants with the same excise status from a legal point of view. you define an excise duty indicator. Prerequisites In order for the system to be able to determine which rate of excise duty to apply.htm 10/13/2007 .

The system automatically determines the rate of excise duty as follows: 1. The system determines the chapter ID of the ball bearing for the plant. 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. from the SAP Easy Access screen. Excise tax rate For every chapter ID and final excise duty indicator. To maintain the data.01. you then create a final excise duty indicator. Looks up the plant master data to see what status you have assigned the plant. and then select the following options described below. 2. Let’s assume the chapter ID at plant for the ball bearings is 1000. for each permutation of plant indicator and customer indicator. 5. Again. Assume you are posting a sale of ball bearings to a customer. 3.01 under status 7. Similarly. Material master data Each material is assigned a chapter ID. 4. Let's assume you've assigned the customer status 3.htm 10/13/2007 . choose Indirect Taxes → Master Data → Excise Rate Maintenance. Finally. you maintain the rate of excise duty. your plant has status 2. you assign the same excise duty indicator to each of your customers that share the same legal excise status. If your business only qualifies for partial CENVAT credit. Use In conjunction with other data. this data is used to calculate excise duty on various transactions. Material Master (Excise Data) Definition The part of the material master record that contains information relating to Indian excise duty. 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 looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.India Page 69 of 224 Similarly. Looks up the customer master data to see what status you have assigned the customer.

Material Assessable Value On this screen. Material and Chapter ID Combination On this screen. whether the excise duty should be credited to the CENVAT account immediately a goods receipt is posted (multiple credit) or not until all the goods receipts have arrived (single credit) (see Multiple Goods Receipts for a Single Excise Invoice) This information is valid for a given plant. Excise Tax Rate On this screen. so you must take into consideration each permutation of plant and customer. specify: Chapter ID Whether the material can be sent to subcontractors (see Subcontracting) The material type This denotes. and each combination of plant and vendor. you define the chapter IDs and corresponding descriptions as described in the excise tariff structure. and if so. CENVAT Determination On this screen.India Page 70 of 224 Structure The excise part of the material master is divided into the following screens: Chapter IDs On this screen. If the information is valid for all of your plants. and tell the system how much excise duty to reverse from your CENVAT account. you specify which raw materials are used to produce which finished (or semifinished) goods. you maintain the net dealer price and the assessable value of all materials that you send to subcontractors or for any other issue. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. you specify for each chapter ID every possible rate of excise duty that might apply. This information is used when you create excise invoices and is also shown in the various excise registers. The system uses this information to determine whether it you can claim a CENVAT credit for a material. a capital good – this affects the CENVAT process – or if it is a finished good on which excise has been paid. however. to be covered by the Update of RG 1 and Part I Registers. For each material.htm 10/13/2007 . specify until which date it applies. You can maintain the basic excise rates in the following forms: Ad valorem Specific As a combination of both For each rate. whether the material is a raw material. These values serve as the excise base value when the materials are issued. for example. Whether you accept more than one goods receipt per excise invoice. leave the Plant field blank. you maintain the excise data relating to your materials.

you must also: Assign it a vendor excise duty status (for more information about how this works. maintain any exceptions that apply to the excise rates that you have defined. Sales Tax Setoff Percentages On this screen. and collectorate in which this is located) Central sales tax (CST) number Local sales tax (LST) registration number Permanent account number (PAN) In order for the system to be able to calculate which rate of excise duty to apply on purchases from the vendor. Exceptional Material Excise Rate On this screen. maintain the percentage of local sales tax on inputs that you can deduct against LST on outputs. maintain any cess applicable. from the SAP Easy Access screen. which are used for various forms of correspondence and reports: Excise registration number (and the range. see Determination of Excise Duty Rates) file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. should any apply. If you have an exceptional rate for a customer–material combination. you can maintain it here as well. this data is used to calculate excise duty on various transactions. choose Indirect Taxes → Master Data → Excise Rate Maintenance. Maharashtra and Gujarat. Exceptions can apply to a single material from all vendors. Use In conjunction with other data.htm 10/13/2007 . participate in this scheme. for example. To maintain the data. Currently very few states. Vendor Master (Excise Data) Definition The part of the vendor master record that contains information relating to excise duty. Additional Excise Rate On this screen. division. you enter your vendors' tax numbers. of to a single material from one vendor only. The setoff amount is deducted from the inventory valuation of the material.India Page 71 of 224 You can also maintain the additional excise duty and special excise duty in ad valorem form. Structure The excise part of the vendor master is divided into the following screens: Vendor Excise Details On this screen. If you need to give these rates as a fixed sum. and then select the following options described below. use the Quantity Based AED and SED screen.

India Page 72 of 224 Specify what type the vendor is. you define the final excise duty indicator (for more information about how this works. Excise Indicator for Plant and Customer file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Structure The excise part of the customer master contains the following information: Customer Excise Details On this screen. Customer Master (Excise Data) Definition The part of the customer master record that contains information relating to Indian excise duty. and then select the following options described below. or importer for 57AE returns If the vendor qualifies as a small-scale industry (SSI). you must also specify: What its SSI status is (which you must first have defined under SSI rates. choose Indirect Taxes → Master Data → Excise Rate Maintenance. a manufacturer.htm 10/13/2007 . for example. To maintain the data. the rates of excise duty that applies to that slab under the two schemes (see Excise Duty for Small-Scale Industries). first-stage dealer. from the SAP Easy Access screen. You define one status for each band (or "slab") of sales volume provided for by the law. see Determination of Excise Duty Rates). this data is used to calculate excise duty on various transactions. you define the excise rates that apply to purchases from vendors that qualify as SSIs. Excise Indicator for Plant and Vendor On this screen. see Determination of Excise Duty Rates). see below) Whether or not it is participating in the CENVAT scheme SSI Rates On this screen. which are used for various forms of correspondence and reports: Excise registration number (and the range. and collectorate in which this is located) Central sales tax (CST) number Local sales tax (LST) registration number 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. division. and for each SSI status. Use In conjunction with other data. you enter your customers' tax registration numbers.

Plant Master (Excise Data) Definition The part of the plant master record that contains information relating to Indian excise duty. this data is used to calculate excise duty on various transactions.htm 10/13/2007 . Excise Indicator for Plant and Customer On this screen. see Determination of Excise Duty Rates). see Determination of Excise Duty Rates). Excise Indicator for Plant and Vendor On this screen. Structure The excise part of the plant master is divided into the following screens: Excise Indicator for Plant On this screen. and then select the following options described below. you define the final excise duty indicator (for more information about how this works.India Page 73 of 224 On this screen. see Determination of Excise Duty Rates). you define the final excise duty indicator (for more information about how this works. Use In conjunction with other data. choose Indirect Taxes → Master Data → Excise Rate Maintenance. no more than two premises and with a sales volume not exceeding an amount specified by the government) need to pay only reduced rates of excise duty on their goods movements. you define the final excise duty indicator (for more information about how this works. you enter your plants' tax registration numbers. you must also assign it a plant excise duty status (for more information about how this works. from the SAP Easy Access screen. The exact rate depends on the business's annual sales volume (see file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. see Determination of Excise Duty Rates). which are used for various forms of correspondence and reports: Central sales tax (CST) number Local sales tax (LST) registration number 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. To maintain the data. Excise Duty for Small-Scale Industries Use Businesses that qualify as small-scale industries (SSIs – those with. for example.

You define a separate SSI status for each of the various "slabs" (sales volume) (see Vendor Master (Excise Data).India Page 74 of 224 below). Again. In this case. An SSI with sales of less than INR 100. In the vendor master: Assigned the vendor the SSI status that you have just defined. you must have: 1. the SSI pays excise duty at a percentage of the normal basic excise duty for the material in question. Process Flow Execute the following steps in the Implementation Guide to configure the tax calculation procedure TAXINJ: Procurement file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.000–400. If the vendor participates in the CENVAT scheme (see below). there are two schemes. an SSI can opt out of the CENVAT scheme.000 would not apply any excise duty. Under the second scheme. those earning up to INR 400. That means that when you make a purchase from an SSI.000 Excise (%) 15 15 SSI rate (% of excise) 60 80 Effective SSI excise (%) 9 12 Configuration of Tax Calculation Procedure TAXINJ Purpose TAXINJ is a tax calculation procedure for country version India and it supports formula-based excise determination.htm 10/13/2007 . the system calculates a different rate of excise duty. Under the first. this percentage depends on the SSI's total annual sales. whereby an SSI participates in the CENVAT scheme. Turnover (INR) 0–100. they apply basic excise duty at certain flat rates on all transactions. entered X (Vendor participating in CENVAT scheme). 2. Defined the SSI statuses.000 100. Note that SSIs are not required to pay additional excise duty or special excise duty. Prerequisites In order for the system to be able to calculate the correct rate of excise duty. These rates vary according to their total annual sales. and so on. Features As far as SSIs are concerned. You need to configure this tax calculation procedure.000 would levy basic excise duty on all materials at 2%.

○ VS6 Input Tax Define the Tax Procedure according to the settings in the figures below.India Page 75 of 224 Set up the Condition Types for the following conditions in the IMG under Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Basic Settings → Check Calculation Procedure → Define Condition Types: Excise Conditions JMOD IN: A/R BED JNED IN: A/R NCCD JAED IN: A/R AED JSED JCES JECS IN: A/R SED IN: A/R Cess A/R Educational CESS ○ LST/CST/VAT Conditions JIN1 JIN2 JIN4 JIN5 JIN6 JIN7 IN: A/R CST IN: AR LST IN: A/R CST Surcharge IN: AR LST Surcharge A/R VAT Payable A/R CST Payable VAT ○ Service Tax Conditions JSE4 JES4 Service Tax ECS on Service Tax Set up the following Account Key in the IMG under Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Basic Settings → Check and Change Settings for Tax Processing. You can do this in the IMG under Financial Accounting → Financial Accounting Global Settings file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 .

India Page 76 of 224 → Tax on Sales/Purchases → Basic Settings → Check Calculation Procedure → Define Procedures.htm 10/13/2007 . file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.

Sales Set up the Condition Types for the following conditions in the IMG under Financial Accounting → file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. You can do this in the IMG under Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Basic Settings → Assign Country to Calculation Procedure.India Page 77 of 224 Assign Tax Procedure to the country.htm 10/13/2007 .

htm 10/13/2007 .India Page 78 of 224 Financial Accounting Global Settings → Tax on Sales/Purchases → Basic Settings → Check Calculation Procedure: ○ Excise Conditions JMOD IN A/R BED JEX2 IN A/R BED JAED IN A/R AED JEXA IN A/R AED JNED A/R NCC duty JEXN A/R NCCD JSED JEXS JCES JCED JECS JECX IN A/R SED IN A/R SED IN A/R CESS IN A/R CESS IN A/R EDU-CESS IN A/R EDU-CESS LST/CST/VAT Conditions ■ ■ ■ ■ ■ ■ JIN1 JIN2 JIN4 JIN5 JIN7 JIN8 IN A/R CST IN A/R LST IN A/R Surcharge IN A/R LST Surcharge IN A/R CST in VAT IN A/R LST – Value Service Tax Conditions ■ ■ JSE4 JES4 IN Service Tax ECS on Service Tax file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.

India Page 79 of 224 Set up the Condition Type UTXJ and assign the Access Sequence as JIND. ○ JDEPOT (IN:Depot sale with formula) file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 . Set up the following Account Key in the IMG under Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Basic Settings → Check and Change Settings for Tax Processing. ○ MW3 Sales tax 3 ○ MWS Output tax ○ JN6 ○ JN7 ○ JN9 ○ JS6 ○ JS7 A/R VAT Payable A/R CST Payable VAT LST Value A/R Service tax A/R ECS on Service Set up the following Pricing Procedures according to the settings in the figures below. You can do this in the IMG under Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define And Assign Pricing Procedures. You can do this in the IMG under Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Basic Settings → Check Calculation Procedure → Define Condition Types.

India Page 80 of 224 ○ JEXPOR (IN:Export sales with formula) ○ JFACT (IN:Factory sale with formula) file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 .

htm 10/13/2007 .India Page 81 of 224 ○ JSTKTR (IN:Stock transfer with formula) file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.

In addition to the standard procedure.htm 10/13/2007 . you also have to capture and post the incoming excise invoice.India Page 82 of 224 External Procurement (Domestic) Purpose This process illustrates how manufacturing plants can use the SAP system to procure excisable goods. Process Flow You create a purchase order for the goods you want and send it to the vendor. and the system creates the appropriate entries in the excise registers. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.

the system adds the difference to the material price. for any reason.htm 10/13/2007 . The system: Creates a material document to record the goods receipt Creates an accounting document to debit the inventory account and credit the GR/IR clearing account: Creates a Part I entry in register RG 23A or 23C Note that if you first want to post the goods to blocked stock. The excise clerk then captures the excise invoice as normal. makes any changes necessary. The document contains debit postings to clear the clearing accounts for goods receipts and CENVAT.India Page 83 of 224 After a few days. the vendor sends you the goods together with an excise invoice. The system automatically debits the excise duty to the excise duty accounts and credits the CENVAT clearing account: standard It then creates a Part II entry in register RG 23A or 23C to record this posting. see Multiple Goods Receipts for a Single Excise Invoice. If the excise supervisor has reduced the amount of excise duty that is to be credited to the CENVAT account. When the goods arrive at your company. the warehouseman enters the goods receipt. do so using the procedure. following the standard procedure. You enter the vendor's invoice. The system also creates an accounting document. and a credit posting to create an open item on the vendor's account: file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. For information about what to do if the vendor sends the goods in more than one delivery. The excise supervisor checks the excise invoice captured by the clerk. The excise clerk captures the excise invoice. and posts it.

If your business processes differ from the procedure described above. the goods receipt is entered before the excise invoice. follow the following data on the Invoice tab: Enter a tax code. However. If the CENVAT credit is less than the duty amount entered. make sure you enter the tax code that you have defined for this purrpose. If you use condition-based excise determination. You can combine these two steps one. you can have one person perform both of these activities in a single step. If you do not.htm 10/13/2007 . the excise clerk captures the excise invoice and the excise supervisor posts it (the two-step procedure). if you wish. When the warehouseman enters the goods receipt. enter the If you are only eligible for partial CENVAT credit. standard procedure. there are a number of alternatives available to you. If you want. so that the warehouseman can capture the excise invoice at the same time as he enters the goods receipt (see Goods Receipts and Incoming Excise Invoices Combined). Capture Excise Invoice Before Goods Receipt In the procedure described above. During invoice verification this will file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. using the transaction under Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoice → Central Processing → Capture/Change/Cancel/Display/Post. you must use an appropriate tax code. the system adjusts the material value for any changes to the taxes that the clerk has made in the captured excise invoice. but when you fill out the item information. Capture Excise Invoice and Goods Receipt Combined Steps 2–3 involve two different system transactions (goods receipt and excise invoice capture). the system will not calculate excise duty or display it on the excise invoice create screen. the system will automatically add the difference to the inventory value when you come to verify the invoice.India Page 84 of 224 Alternatives The above procedure is just one way of using the SAP system to handle incoming excise invoices. Select GR-based IV. If you want. An accounting document to debit the inventory account and credit the GR/IR clearing account is created. your business processes may require you to capture the excise invoice before the goods receipt. to activate goods receipt-based invoice verification. he can even capture and post the excise invoice at the same time. One-Step Procedure In the procedure described above. Creating Purchase Orders To create a purchase order.

enter the excise invoice number. if it is available The system automatically creates an entry in Part I of the excise register RG 23A or RG 23C This procedure only applies if the warehouseman is not entitled to enter excise invoices himself (see Goods Movements and Excise Documents Combined). for stock transport orders. Procedure 1. To close the dialog box. 3. The taxes are calculated in the purchase order according to the vendor. you enter the goods receipts. material. Prerequisites You have specified whether you want the system to create a Part I entry when you post goods receipts to blocked stock. You do so in Customizing for Logistics – General. choose . 4. The purchase order shows the excise duty and sales tax that you expect to pay. From the SAP Easy Access screen. following the standard procedure. in which case you must file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 . the system will not make an entry in Part I of the excise register. choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → GR for Purchase Order. 2. by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Excise Groups. If you have already captured the incoming excise invoice. enter the purchase order number and choose . and to consumption stock.India Page 85 of 224 enable the system to update the material value to allow for any discrepancies between the taxes in the purchase order and the taxes stated by the vendor in the excise invoice. A dialog box appears. If you choose . Fill out all of the other fields. In the top line. In addition: You enter the number of the excise invoice. and tax code. See also: Condition-Based Excise Determination Entering Goods Receipts Use In this procedure. Enter data as required: If you have not yet captured the excise invoice: Leave the Excise Invoice field blank.

see Planned Delivery Costs. Condition Type for CVD The system handles CVD using a condition type for planned delivery costs. 5. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 6. The system proposes the deductible excise duty items in the invoice document. and adjust them as required. the system debits the CVD to the BED account and credits it to a CVD clearing account. which is levied in place of excise duty. CVD Clearing Account When you post CVD to a CENVAT account (see step 5 below). Save the goods receipt. External Procurement (Imports) Purpose This process shows you how to handle the countervailing duty (CVD) on imports. The vendor ships the goods to you. but select Calculate tax on the Vendor Items screen. Specify which condition type you use in Customizing for Logistics – General. For each material that you will have to pay CVD on when it comes through customs. Process Flow 1.htm 10/13/2007 . Unlike other forms of customs duties. in Customizing for Logistics – General. by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Company Code Settings. such as basic customs duty or special customs duty. 2. by choosing Taxes on Goods Movements → India → Basic Settings → Determination of Excise Duty → Excise Defaults.India Page 86 of 224 update the register later. so that you can create liabilities for the CVD (see step 3 in the process flow). Specify which G/L account you want to use as the CVD clearing account. you can credit CVD paid on imports to your CENVAT account. Prerequisites Vendor Master Record for Customs Office Create a vendor master record for the customs office. For more information. Entering and Verifying Invoices Follow the standard invoice verification procedure. Check that all the line items are correct. you enter the CVD as a pricing condition. You create a purchase order for the goods that you want and sent it to the vendor.

Once they have inspected the goods. enter the vendor master record that you have created for the customs office. In the vendor field.htm 10/13/2007 . Then. Country Version India contains a sample pricing procedure for imports. The item is offset to the CVD clearing account. The excise supervisor posts the excise invoice. In order to record the bill of entry in the system: a. Creating Purchase Orders Use You follow this procedure to create a purchase order for imports. enter the rate of CVD that will be levied on the material when it arrives at customs. you follow the observe the following: standard invoice verification procedure. Procedure Create a purchase order for the materials that you want to order using the fill out the item information. 3. JIMPOR. they send them on to you. The excise clerk enters the vendor invoice for the materials. following the standard procedure. but make sure you file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. once the vendor has delivered the goods and you enter the invoice. The warehouseman posts the goods receipt. the system will automatically credit the CVD liability to the customs office. He then captures an excise invoice for the bill of entry 4. make sure that you observe the following: Invoice tab Enter a zero-rate tax code Deselect GR-based IV Conditions tab a. Select the countervailing duty (CVD) condition and choose . the system creates a new vendor item for the CVD at the customs office. standard procedure. but when you Entering Invoices for Bills of Entry To enter an invoice for a bill of entry. The goods arrive at your plant. b. The excise clerk enters an invoice for the bill of entry In Accounts Payable (FI-AP). 6. The customs officers issue a bill of entry for the goods. In the Rate field. b. 5. they go through customs. c.India Page 87 of 224 When the goods arrive in India. which is in effect an invoice for the CVD on the goods. together with the bill of entry.

From the SAP Easy Access screen. ii. Capturing Excise Invoices for Bills of Entry 1. enter data as follows: 1. iv. For each line item: In the Amount field. v. choose Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoice → Individual Processing → Capture/Display. In both cases. Choose . If you sent more than one purchase order to the vendor and it sent you all of the ordered materials together in one shipment: i.htm 10/13/2007 . enter the amount of CVD on the item (if you have more than one item. If you only created one purchase order for the goods. 3. the system displays the line items in the line item overview. Select Deliveries and deselect Returns. enter the amount of countervailing duty (CVD) stated on the bill of entry in rupees. Enter a zero-rated tax code. party (Invoicing party) field. 2. 4. you may have to work the amount out manually). In the Quantity field.India Page 88 of 224 Header Data Basic data tab In the Amount field. enter the purchase order number and select Planned delivery costs. Choose Adopt. Do not enter any other taxes. A dialog box appears with a list of the postings that will be made to Financial Accounting (FI). iii. Details tab Assuming you specified in the purchase order that the CVD was to be paid to the customs office. Enter the number of the purchase order related to this delivery. If not. enter the quantity of goods on the invoice. Choose Simulate. Select Planned delivery costs. Enter all of the purchase order numbers in the table. the system shows the customs office as the vendor. Choose Post. 2. In the top line: file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Line Items On the PO reference tab. enter the customs office’s vendor master record in the Inv.

Choose . 3. If you need to enter more purchase orders – for example. c. 5. Select Capture Excise Invoice Select Purchase Order. Enter the purchase order related to the bill of entry. standard Procedure 1. 3. Check that the line items in the goods receipt are correct. if you sent the vendor more than one purchase order and it sent you back all the ordered materials in a single delivery – for each purchase order. Entering Goods Receipts Use In this procedure. A dialog box appears. b. choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → GR for Purchase Order. Save the excise invoice. A dialog box appears. Result The system creates: A goods receipt document An accounting document An entry for the goods receipt in Part I of the appropriate excise register Posting Excise Invoices file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. enter the purchase order number and choose . Save the goods receipt. you do not need to enter the invoice number.India Page 89 of 224 a. Enter the number of the excise invoice that you created for the bill of entry and choose . 4. Enter other data as required. following the procedure. 2. enter the number in the top line as for step 3. 4. 5. enter the number in the top line and choose . Note that this time. Enter the number of the invoice that you entered for the bill of entry and choose .htm 10/13/2007 . Note that the countervailing duty is displayed in the basic excise duty fields. From the SAP Easy Access screen. 6. d. If you need to enter any other purchase orders. you record the receipt of the goods from the vendor abroad. In the top line. 6.

2. 5. and Recredit). The reason for this close monitoring has to do with India’s tax law. see Subcontracting. Subcontracting Use If you work with subcontractors. Under excise law 57AC. you need to keep track of what materials you have issued and when they have to be returned by. when you send materials to a subcontractor for processing. For information about the standard subcontracting procedure in the SAP System. 4. you are not required to pay any excise duty. Select Post CENVAT and Vendor Excise Invoice. 3. even though the materials have left your premises. you will have to reverse any excise credit that you posted when you purchased the materials (see Completion. The system posts the CENVAT and creates a corresponding entry in Part II or the appropriate excise register. Check that the data is correct. A dialog box appears with a list of the accounting entries that will be made to transfer the CVD from the clearing account to the excise duty account. However. From the SAP Easy Access screen.htm 10/13/2007 . To close the dialog box. If the data is correct. Prerequisites You have made the Customizing settings in Customizing for Logistics – General. choose Post CENVAT. choose Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoice → Individual Processing → Change/Display/Post/Cancel. 180 days). Enter the number of the excise invoice that you created for the bill of entry. Subcontracting Without Payment of Excise Duty Purpose When you issue materials to a subcontractor. if the materials have not been returned to you within a given length of time specified by the law (in 2000. choose . by choosing Taxes on Goods Movements → India → Business Transactions → Subcontracting. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. there are two ways of handling the excise invoice on the goods that you provide them with: Subcontracting without payment of excise duty Subcontracting under full payment of duty Country Version India supports both of these approaches. Reversal. In the case of materials that you have manufactured in-house. you will have to post credit entries to the extent of the CENVAT rate of the assessable value of the materials. 6.India Page 90 of 224 1. Choose Simulate CENVAT.

the storeperson posts the goods receipt and the challan. You have maintained the subcontracting information in the material masters (see Material Master (Excise Data)). When the goods are delivered back to you. 8. This document is. You create a list of the outstanding challans. however. in the Change View Field Selection Overview. For movement type 541. You complete the challan. If a subcontractor fails to return all the materials within the time allotted. This is the consignment document that you will send to the subcontractor along with the materials that are to be processed. Output Determination → Maintain Output Types Output Determination → Assign Forms and Programs Output Determination → Printer Determination → Printer Determination by Plant/Storage Location Process Flow 1. by choosing Taxes on Goods Movements → India → Tools → Number Ranges. an excise journal voucher should be created to reverse the excise duty paid.htm 10/13/2007 . You create a transfer posting order for the materials that are to be sent to the vendor. 2. You create a subcontract order for the goods that you want to subcontract. 5. excise duty relevant to the scrap generated has to be paid.India Page 91 of 224 You have made the Customizing settings for the accounting postings in Customizing for Logistics – General. you have to scrap the material by specifying it as such in the bill of material for the parent material then assigning the bill of material to the subcontracting purchase order. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. make the Purchase Order field an optional entry. thereby accounting for the return of the materials that you have sent for subcontracting. You send the materials to the subcontractor. The subcontractor processes the materials and returns the finished goods. You have set up the number range for the subcontracting challan in Customizing for Logistics – General. The delivery may not necessarily cover all the goods from the challan: It may also include goods from a number of different challans. 7. The excise department reconciles the goods receipt against the challan. 4. You create a subcontracting challan on the basis of the transfer posting order. If the scrap generated is not returned by the subcontractor. pick the 541 movement type and in the Select Group Materials Management. by choosing Taxes on Goods Movements → India → Account Determination. The SAP functions allow for this eventuality. The challans here include those that have been captured online at the time of goods receipt and those entered manually. If this scrap is returned after the duty has been paid. You have made the following settings in Customizing for Materials Management → Inventory Management and Physical Inventory: Goods Issue/Transfer Postings → Define Screen Layout. 6. for your own use only. 3. along with a printout of the subcontracting challan.

you can also create a subcontracting challan from the returns order. an internal document number and a challan number. see Entering Goods Receipts and Subcontracting Challans Together. 57AC. This law has now been superceded by a new one. If the finished goods returned to you by the subcontractor are of substandard quality. to make sure that all are returned within the allotted time limit. after the law under which it was defined up until the 2000 budget. each challan has two numbers. Use You create challans from transfer orders to accompany any materials that you send to subcontractors under rule 57AC.htm 10/13/2007 . you record the returns in the challan.India Page 92 of 224 Alternatives The procedure given in step 5 shows how to enter the goods receipt using the old Goods Movement transaction. with additional information about the excise duty on each material that you have supplied. Subcontracting Challan Definition A document that you use to issue and track subcontracting work. As the subcontractors return the finished goods to you. MIGO. The challan is also widely known as the 57F4 challan. If you want to use the new Goods Movement transaction. You can also enter additional data for each item. Structure The challan consists of a header and line items. in addition to organizational data. which shows you what stage in processing it is at. Materials that are not liable to excise duty do not have to be included in the challan. In this respect. Each challan also has a status. The header. From a business perspective. Processing Subcontracting Challans file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. they are an extended form of delivery note. It allows you to make sure that all the materials you have sent to the subcontractor for processing are returned. this is the most important number. allows you to enter: Preprinted number Additional data Identification marks Nature of processing Furthermore. The line items are copied across from the transfer posting when you create the challan. which the system assigns to the challan when you save it.

Furthermore. from the SAP Easy Access screen. save the challan. The challan status changes to Canceled. Reconcile quantities → Reconcile Quantity See Reconciling Quantities. Choose . What you should know See Creating Subcontracting Challans See Printing Subcontracting Challans. Reverse the excise duty credit → Complete/Reverse/Recredit See Reversing Excise Duty Credit.India Page 93 of 224 To access the individual functions shown in the table. → Change. From the SAP Easy Access screen. Cancel a challan → Change → . The challan status changes to Completed. If you need to change accounting data. Change a challan You can only change challans with the status Posted. The challan status changes to Assigned/fully reconciled. 2. Complete a challan → Complete/Reverse/Recredit See Completing Subcontracting Challans. you must delete the challan and create a new one. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. choose Indirect Taxes → Procurement → Subcontracting → Subcontracting Challans → … Function Create a challan Print a challan Follow-on menu path → Create. Creating Subcontracting Challans 1. Enter the following data: Material Document: The transfer posting document number Material Document Year: The year that you created the transfer posting document Excise Group Series Group 3. → Create or → Change. choose Indirect Taxes → Procurement → Subcontracting → Subcontracting Challans → Create. you can only change data that relates to the challan printout. choose from the SAP Easy Access screen. The challan status changes to Reversed. The system calculates the excise duty for the materials. The challan status changes to Reversed/completed.htm 10/13/2007 . To save the cancellation. Recredit the excise duty → Complete/Reverse/Recredit See Recrediting the CENVAT Account.

the system uses the excise rate from the latest excise invoice for the material received from the vendor. in the change transaction. Printing Subcontracting Challans You can print a subcontracting challan when you create it. the SAP System determines the taxable value of the material on the basis of the following information. It is set by default to the day’s date.htm 10/13/2007 . special excise duty. Calculation of Excise Duty on Materials for Subcontractors Use When you send materials to a subcontractor for processing. 7. you can change it you need to. This is the date from which the system calculates the return due date. select Print immediately on the Posting tab. Select the excise invoice or invoices. Features When determining the excise duty for materials purchased from third parties. the system determines the base excise value of each material and the amount of excise due automatically.India Page 94 of 224 4. the price at which you sell the material to customers) Selecting Excise Invoices 1. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. in this order: The latest excise invoice value for the material The material's assessable value (that is. Select the material that you want to assign the excise invoices to and choose Excise invoice selection. 3. or if you need to print it later on. the price determined by an external auditor) The material’s net dealer price (the material’s list price. you have to determine how much excise duty is applicable. Change the posting date. 6. the system reads how much excise duty you have paid on the materials that you are sending. Prerequisites You have maintained the materials’ excise data (see Material Master (Excise Data)). Choose . Thus. 2. If you want to print the challan straight away. Specify which excise invoice the materials are from. and additional excise duty) are printed on the subcontracting challan. Where materials manufactured in-house are concerned. 5. This of course depends on the base value. However. Once you have assigned the materials to an invoice. Save the document. if necessary. The different amounts of excise duty (basic excise duty. when you create a subcontracting challan.

Enter the following data: In the Material Doc. choose Indirec Taxes → Procurement → Subcontracting → Subcontracting Challans → Change. Prerequisites You have posted the goods receipt (or any other material document) for the returned goods. save the challan. Choose Reconcile. In the table below. if all the relevant challans were entered during goods receipt. at the bottom is the information from the challans that you have entered. and Mat. if necessary. choose Indirect Taxes → Procurement → Subcontracting → Subcontracting Challans → Reconcile Quantity. for each challan. However.India Page 95 of 224 1. all containing the same material. Reconciling Quantities Use Once a subcontractor has processed your materials and returned them to you. by choosing . Specify which challans the materials in the goods receipt originated from: If you have sent a subcontractor a number of different challans. enter manually the quantity of materials has been returned. A new screen appears. On the Posting tab. Enter the number of the preprinted stationery. you match the items in the challan against those that have been returned. Year fields. 5. At the top is the information about the goods receipt (or other document). 4. and choose to refresh the display. From the SAP Easy Access screen. If the material document is a goods receipt document with movement type 101. 3. Save the challan. From the SAP Easy Access screen. they need not be entered here 3. 2. enter the challan numbers and the years in which they were created. you can automatically specify that the materials should come from the oldest challans first. Doc. Otherwise. This number will be saved for future reference.htm 10/13/2007 . you can enter the challans that were not captured when the goods receipt was posted. select Print Immediately. Result file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 4. Procedure 1. 2. Once you have accounted for all the materials in the goods receipt. enter the number of the goods receipt document and the year in which it was created.

India Page 96 of 224 The system changes the challans' status as follows: If you have accounted for all of the materials in a challan. the system sets its status to Fully Reconciled. If a challan's return date has elapsed. should your subcontractor return the goods subsequently. and Recredit Use You use this function to close a challan completely after all the materials have been accounted for. Prerequisites You have: Assigned the challans to a goods receipts document Assigned the challans to a material document in quantity reconciliation Not completed or reversed the challans Procedure 1. 2. choose Indirect Taxes → Procurement → Subcontracting → Subcontracting Challans → Reconcile Quantity → Delete Assignments. Completion. Choose Delete Assignment. you use it to reverse the excise credit – or. Scrap generated is assigned to a challan only if the percentage component scrap is specified in the bill of material for the parent material and this bill of material is assigned to the subcontracting purchase order. To access the function. you can complete the challan. choose Indirect Taxes → Procurement → Subcontracting → Subcontracting Challans → Complete/Reverse/Recredit. you must assign the remaining quantity of materials to another goods receipt later on. and thus your right to the CENVAT credit.htm 10/13/2007 . it sets the status to Assigned. Reversal. From the SAP Easy Access screen. The challans will no longer be related to the material document until another assignment takes place between the same. In this case. from the SAP Easy Access screen. to recredit the excise credit. In this case. Deleting Assignments Use You follow this procedure if you have assigned the wrong challan to a goods receipt or other material document (see Reconciling Quantities). If you have accounted for only some of the materials. Result The assignments will be deleted. Features Exactly which function is available depends on the challan's status as follows: file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.

you can recredit the excise duty credit that you have reversed. choose Indirect Taxes → Procurement → Subcontracting → Subcontracting Challans → Complete/Reverse/Recredit. From the SAP Easy Access screen. when the materials arrive. This function sets the status to Reversed. 5. Choose . 2. Select Complete Challan. choose Indirect Taxes → Procurement → Subcontracting → Subcontracting Challans → Complete/Reverse/Recredit. Completing Subcontracting Challans 1. Recredit If a subcontractor returns materials after the return date. Select Reverse Challan. From the SAP Easy Access screen. Save the challan. choose Indirect Taxes → Procurement → Subcontracting → Subcontracting Challans → Complete/Reverse/Recredit. If you do expect the subcontractor to return at least some of the materials. 3. 3. 4. 4. Enter the challan number and year. Reversing Excise Duty Credit 1. 3. From here. you can complete it. Select either of the following options: Take Recredit for Receipts file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Choose . 4. This prevents you from making any more changes to it. you have two options: If you do note expect the subcontractor to return the materials. the excise duty for the scrap has to be reversed. If it is not returned. 5. you can recredit the excise duty to the account (see below). you can leave it as it is for the time being. 2. Reversal of CENVAT Credit If the allotted number of days elapses and the subcontractor has not returned some or any of the materials in the challan (status: Posted or Assigned).India Page 97 of 224 Completion You can complete a challan if you have accounted for all of the materials in it (and it thus has the status Fully Reconciled). 2.htm 10/13/2007 . Choose . you must reverse the excise duty that you have credited to your CENVAT account. Then. Enter the challan number and year. Save the challan. The scrap has to be returned by the subcontractor. Recrediting the CENVAT Account 1. Enter the challan number and year. From the SAP Easy Access screen.

Posting Goods Receipts from Subcontractors Use When you post a goods receipt for a purchase order. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Prerequisites You have made the appropriate settings in Customizing for Materials Management. Save the challan. if any is available. 5. In the Change View Field Selection Overview. you follow the standard procedure. Procedure Follow the standard procedure (see the section Providing Components from Inventory Management).htm 10/13/2007 .India Page 98 of 224 This leaves the challan open for further goods receipts. Making Transfer Postings Use You follow this procedure to create transfer postings. you can ignore the prompts to enter them. Note that the movement type supplied with the standard system for transfer postings to stock for subcontractors is 541. select movement type 541 and mark the Purchase order field as an optional entry. Take Recredit If Any and Complete Challan This completes the challan and writes off finally any CENVAT credit that you might have been able to claim. Choose Adopt + details. Purchase order Plant Storage location 2. On the initial selection screen. enter 101 for goods receipts for purchase orders into warehouse. with or without reference to a purchase order. by choosing Inventory Management and Physical Inventory → Goods Issue/Transfer Postings → Define Screen Layout. If the delivery note does not show the challan numbers. Procedure 1. but there are a couple of extra dialog boxes in which you can enter the challan data. enter data as follows: Movement type In the standard system.

India Page 99 of 224 A dialog box appears. 8. 4. you can use condition type JEXC. Choose . 5. Choose . Enter the challans from which the materials were supplied. 7. from the SAP Easy Access screen. which is not relevant for subcontracting. Depending on what selection criteria you enter. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. choose. Subcontracting Under Full Payment of Duty Purpose This procedure illustrates how you use the system to send materials to your subcontractors for processing using normal excise invoices. but not reconciled Which challans' reference documents have been canceled Annexure IV Features To access the report. you can use it for finding out: Which challans are still with the subcontractor and are due back the following week Which challans you can make a recredit for Which challans have been entered for a goods receipt. List of Subcontracting Challans Use You use this report to create a list of subcontracting challans. Process Flow The purchasing clerk creates a subcontract order for the subcontractor’s services. For more information about a particular challan. Output The system displays a list of the subcontracting challans that meet your selection criteria. click it. Save the goods receipt. 6. Prerequisites You have created a condition type for manually entering excise duty in the subcontract order.htm 10/13/2007 . 3. In the standard system. if available. Enter the challan numbers and the years that they were created. choose Indirect Taxes → Procurement → Subcontracting → Reports → Challan Listing. Another dialog box appears. Choose .

enter the excise duty on the line item in the Condition value field for the manual excise value condition (in the standard system. 2. Stock Transfer Purpose file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. The reference document type is MATD (Material document). The excise clerk creates an outgoing excise invoice for the materials. enter the number of the transfer posting document as the reference document. 5. Set the order type to Standard PO. The excise clerk captures the subcontractor’s excise invoice. From the SAP Easy Access screen. The subcontractor processes the materials and returns them to you. The excise supervisor posts excise invoice. data (Organizational data) tab. enter the subcontractor. 3. In the item overview. Creating Subcontract Orders 1. In the Vendor field. On the Conditions tab. 4. together with the excise invoice. condition type JEXC). You send the materials to the subcontractor. choose Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known. On the selection screen. Fill out the Org. using the purchase order as the reference document. The accounts payable clerk posts the subcontractor’s invoice. In the item details. Creating Excise Invoices for Subcontractors Use To create an outgoing excise invoice for the subcontracting materials. 6. The warehouseman enters the goods receipt. enter the line items as described in the standard procedure. 8.htm 10/13/2007 . together with another excise invoice. on the Invoice tab: Select GR-based IV (Goods receipt-based invoice verification) Enter a zero-rate tax code 7. Save the subcontract order. in the Reference group box.India Page 100 of 224 The warehouseman creates a transfer posting for the materials that you want to send to the subcontractor. follow the standard procedure.

b. 3. following the standard procedure. and enter customer account number in the Customer field on the Control screen. choose Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoices → Individual Processing → Capture/Display for excise clerks or Change/Display/Post/Cancel for excise supervisors. see Two-Step Procedure – Plant. 2. The excise supervisor then posts the excise invoice. You create a stock transport order.India Page 101 of 224 This process shows you how to order goods from another plant in your company. The issuing plant has processes your order. The excise clerk there creates an excise invoice c. 4. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. To access the function. and excise supervisors. Create a customer master record for the issuing plant. who then post the excise invoices captured by the clerks. The excise clerk captures the excise invoice. Assign the plants to the customer master record in Customizing for Materials Management (MM). by choosing Purchasing → Purchase Order → Set Up Stock Transport Order → Plants. Create a vendor master record for the issuing plant. It then sends the goods to you. The excise supervisor verifies and posts the excise invoice. from the SAP Easy Access screen. Incoming Excise Invoices Use This transaction is mainly for use by excise clerks. 4. b. Process Flow 1. The storeperson enters the goods receipt. 3. together with the excise invoice. by choosing Taxes on Goods Movements → India → Business Transactions → Incoming Excise Invoices. Repeat steps 1 and 2 for the receiving plant. For information about the standard procedure. The storeperson at the issuing plant issues the goods using a transfer posting. Prerequisites Before you can start. again using the stock transport order as the reference document. you follow the standard procedure for incoming excise invoices: a. you can first enter the goods receipt and then capture the excise invoice.htm 10/13/2007 . taking into account all of the excise regulations. Prerequisites You have made the appropriate settings in Customizing for Logistics – General. 2. Once the goods arrive. and when it is ready to ship: a. and send the order to the issuing plant. so that they can capture incoming excise invoices. set up customer and master records for both plants as follows: 1. using the stock transport order as the reference document. Alternatively.

you specify the reference document in this area. Totals file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. As such it is integrated with Materials Management (MM) and Financial Accounting (FI). Header Data This area consists of four tabs. When you capture an incoming excise invoice. Features The screen consists of the following areas: Top Line This is where you specify what document you want to process. Total amounts of different types of excise duty in the excise invoices. are also shown in the transaction. Tab Excise Invoice Use Basic header data that you would expect to find at the top of the excise invoice itself. in Parts I and II of the excise registers RG 23A and 23C. each with information that relates to the whole of the excise document. When you process an excise invoice that you have already captured. such as the excise invoice number and the date.India Page 102 of 224 Integration The function is an integral part of the procurement process in Country Version India and contains information relating to material movements and taxes.htm 10/13/2007 . you enter the excise invoice number. Any entries that the system makes in relation to an incoming excise invoice.

Any entries in Part II of the excise registers RG 23A or RG 23C. the system copies all the appropriate header data and line items from it into the excise invoice. so that there is less typing for you to do and less likelihood of making errors. but you process the items in the detail data area. The rates of excise duty on the item. according to your own requirements. The other SAP documents associated with the item. if you need to reject the invoice. You can also enter a serial number. Information the quantity of goods in the excise invoice. Detail Data This area consists of seven tabs. The excise duty on the item. Part II Fields for any additional information that you might want to enter. Part II Item Overview This area lists all of the items in the excise invoice. Duty Rates Duty Values Reference Documents Additional Data Part I. each with information about a particular item. Reference Documents Use When you capture an incoming excise invoice. if the excise invoice was printed on preprinted stationery. the first piece of information that you enter is the reference document. Any entries in Part I or Part II of the excise registers RG 23A or RG 23C. you click the item number and process it in the detail data . Immediately you enter the reference document. and about the manufacturer’s excise registration details. if different from the vendor that sent you the goods. in the top line.htm 10/13/2007 . and how much of this quantity have entries in Parts I and II of the excise registers. or a rejection code. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. and how much of it has already been credited to the CENVAT accounts. Additional Data Fields for any additional information that you might want to enter.India Page 103 of 224 Miscellaneous Information about the manufacturer of the goods. Tab Item Quantities Use Basic information about the material itself. To process an item. this time at item level. Note that this tab is not displayed if there are no Part II entries.

select Without Purchase Order and enter the material document number. contract. use the goods receipt as the reference document in preference to any other documents related to the delivery. Again. so select Without Purchase Order. you select Stock Transport Order. there are few cross-checks that the system can carry out. where a vendor sends you some goods accompanied by an excise invoice Stock transport orders.India Page 104 of 224 By specifying the reference document. or scheduling agreement but you have not yet posted the goods receipt. Capturing Excise Invoices Using Reference Documents Use You use this procedure to capture incoming excise invoices using a reference document. You specify the document type in the top line.htm 10/13/2007 . there are several types of documents that you can use as a reference documents. The system still copies the data from the material document. if you have a material document but for whatever reason you want fewer cross-checks. you also ensure that the excise invoice is properly integrated into the SAP document flow. No Reference Documents Available If for any reason a vendor sends you a delivery and excise invoice for which you do not have any reference documents. see Capturing Excise Invoices Without Reference Documents. When you use one of these documents. use one of these documents. If the goods were delivered as the result of a purchase order. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. the system cross-checks all the data you enter in the excise invoice against the master data and transaction data already at its disposal. but you have to do it manually. you can still capture the excise invoice. If you have already posted a goods receipt for the deliver. accompanied by an excise invoice Use in External Procurement In the external procurement process. For more information. Features There are two scenarios where you might be sent an excise invoice: External procurement. but the cross-checks are less stringent. where another of your business’s plants sends goods to your plant. again. Fewer Cross-Checks Alternatively. Use in Stock Transport Orders If your plant has created a stock transport order for materials to be sent from another plant.

Edit the items. In the next field. In the top left-hand corner of the screen. From the SAP Easy Access screen. 5. select the reference document type (for example. 6.htm 10/13/2007 . leave the field blank. 3. Goods Receipt or Purchase Order). Specifying Reference Documents 1. In the next field. 3. If at any time you want to start over.India Page 105 of 224 Procedure 1. 2. 5. If you need to specify another reference document – for example. select Capture Excise Invoice. Save the excise invoice. enter the number of the reference document. Edit the excise invoice header data. This only applies to purchase orders. and contracts. Otherwise. The system copies the relevant header data and items from the reference document into the screen. The system copies the additional line items into the screen. 2. If you only want one of the line items from the reference document. 4. Editing Header Data Use file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Choose . 4. enter the line item number in the following field. if you sent the vendor two separate purchase orders and it sent the ordered materials in one delivery with one excise invoice – repeat steps 1– 4. Specify the reference documents. Result The system: Creates the excise invoice and assigns it an internal excise invoice number Sets the document status (on the Excise invoice tab) to In process The excise supervisor then has to post the excise invoice in a separate step. Remove any items from the item overview that you do not need. scheduling agreements. choose Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoices → Individual Processing → Capture/Display. in the top line. choose .

mark the line items that are in the excise invoice as OK. In the item overview. and ECC number accordingly. Much of the header data is copied automatically from the reference documents. Procedure 1. However. not the vendor. Procedure 1. 3. This information shows who paid the excise duty on the materials. click the number of the item that you want to edit. The system removes all of the items that are not marked as OK. Editing Line Items Use Once you have specified the reference documents and have edited the line item overview.htm 10/13/2007 . In the item overview. but some information you will have to maintain manually. On the Excise invoice tab. the traffic light on the Excise invoice tab turns green. If the data is in incomplete or incorrect. the next step in capturing the excise invoice is to edit the excise invoice header data on the screen to match what is printed on the excise invoice itself. edit each line item to make sure that the information on the screen matches the information in the vendor’s excise invoice. In that case. it will be the latter who has paid the excise duty. the system automatically enters all the line items from the documents. 2. the system displays a list of the problems. Choose Check to check the header data. enter the excise invoice number and date from the vendor’s excise invoice. Choose Delete. 2. enter the vendor in the Ship-from field on the Miscellaneous tab and choose . there may be fewer items in the excise invoice than in the reference document. Removing Items from the Item Overview Use When you specify the reference documents.India Page 106 of 224 Once you have specified the reference documents. If the data is all right. If your vendor has not manufactured the materials itself. The system changes the excise range. Procedure 1. division. you have to remove the excess items from the overview. The system displays the item in the detail data and grays it out in the overview so that you cannot edit it file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. If the materials were supplied by a different vendor than the one in the purchase order. but has purchased them from another business.

Select Item OK. choose SAP Easy Access screen. When you save the excise invoice. Enter the line items. In the detail data. the system displays a list of the problems. If you have a material document. Enter the header data. 2. You can also follow this procedure if you do have a material document that you want to use as a reference document. deals with all of the invoices and most of the other paperwork. you treat it as you would any other excise invoice. enter the material document number and choose have any reference documents. 4. From the SAP Easy Access screen. 4. The subcontractor sends you all excise invoices accordingly and you capture them in the system without any reference documents. In the top line: a. and duty values against the vendor’s excise invoice and adjust the information in the system to match it if necessary. If you do not 3. see Reference Documents). . You commission a construction company build a new plant for you. Select Without Purchase Order. Capturing Excise Invoices Without Reference Documents Use This procedure shows you how to capture an incoming excise invoice if you do not have any reference documents. Procedure 1. with the exception of the incoming excise invoices. leave the field blank.htm 10/13/2007 . duty rates. Save the excise invoice. choose Check. but you want the system to cross-check the excise invoice data against other master data or transaction data less stringently than it normally would (for more information. 3. which the law requires you to deal with yourself. If the data is all right.India Page 107 of 224 there. check the quantities. choose Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoices → Individual Processing → Capture/Display. the system only saves the items that you have marked as OK. b. the item’s traffic light in the item overview turns green. The company purchases all the materials it needs to build the plant. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 2. To check the item data to make sure that the system accepts it. c. If the data is in incomplete or incorrect. Select Capture Excise Invoice. 5. Result Once you have saved the excise invoice.

The system: Adds the line item to the item overview Fills out the Material type. Change the excise range. excise division. Description. If the data is in incomplete or incorrect. and ECC number if they are incorrect. no information will be displayed. If the data is all right. On the Miscellaneous tab. enter the following data: Material Plant 2.India Page 108 of 224 Entering Header Data 1. the traffic light on the Excise invoice tab turns green. On the Item tab. enter the following data: If the vendor who sent you the excise did not manufacture the goods itself. 3. enter the manufacturer in the Ship-from field and choose Enter. 3. Choose . 2. enter the following data: Excise base amount file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. but you can enter it here manually. On the Excise invoice tab: Copy the information from the vendor’s excise invoice into the following fields: Excise invoice number Excise invoice date Vendor Fill out the Excise group field. the system displays a list of the problems. but obtained them from a different manufacturer.htm 10/13/2007 . if necessary Enter the quantity of goods still available for CENVAT credit 4. On the Duty values tab. Choose Check to check the header data. Entering Line Items 1. On the Quantities tab: Enter the item quantity and change the unit of measure. and Chapter ID fields using the information from the material master record If you have not maintained a material master record for this material.

b. Select Post CENVAT. choose Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoices → Individual Processing → Change/Display/Post/Cancel. 4. c. You can also save your changes without making any CENVAT postings by choosing . choose and repeat steps 1–5. the system displays a list of the problems. choose . 2. the item’s traffic light in the item overview turns green. however. Select Vendor Excise Invoice. 3. To close the dialog box. In the top line: a.htm 10/13/2007 . You must pay particular attention to the excise duty that is to be credited to the CENVAT accounts. Result The system: Creates an accounting document to make the appropriate CENVAT postings file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Posting Excise Invoices Use Once the excise clerk has captured the excise invoice.India Page 109 of 224 Excise amounts 5. Enter the excise invoice number. the excise supervisor checks it to make sure that the data has been entered correctly. choose Post CENVAT. and the CENVAT clearing account credited. Check the information in the system against the vendor’s excise invoice and adjust the information in the system to match. Choose . see Rejection of Excise Invoices. If the data is in incomplete or incorrect. To check the CENVAT postings. If. choose Simulate CENVAT. and then posts the excise invoice. To add a new item. To check the item data to make sure that the system accepts it. 6. The excise duty accounts will be debited. Procedure 1. A dialog box appears with a list of the postings that will be made. 5. 6. choose Check. there is a problem with the excise invoice and you need to reject it. From the SAP Easy Access screen. To post the excise invoice and make the CENVAT postings. If the data is all right.

Features If you only capture an excise invoice. In the dialog box. on the Additional Data tab. but you assign it a rejection code. and one for information about the Part II entry. by choosing Tax on Goods Movements → India → Tools → Long Texts. You could define one long text for information about the bill of lading. Activities Customizing You define what sorts of long texts that you want to be able to enter in Customizing for Logistics – General. However. Rejection of Excise Invoices Use If a vendor sends you an excise invoice that as it stands is unacceptable – for example.India Page 110 of 224 Creates the corresponding entries in Part II of the appropriate excise register Long Texts Use When you capture an excise invoice.htm 10/13/2007 . Activities Customizing Define the rejection codes in Customizing for Logistics – General. the rejection code controls whether the system creates a normal CENVAT document or if it posts the excise duty to the CENVAT on hold account pending clarification of the invoice. Day-to-Day Activities When you capture an excise invoice and you want to enter a long text for it. choose Long Text. the rejection code does not have any effect on the excise invoice other than to denote it as rejected in some way. you can enter notes relating to the excise invoice – for your own reference only – as long texts. double-click the sort of long text that you want to enter. if you post an excise invoice. and type the text in the field next to it. if it is illegible or some of the data is missing – you still post the excise invoice. by choosing Taxes on Goods Movements → file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.

c. Choose Post CENVAT. showing you that the system will debit the excise duty to the excise duty accounts and credit it to the CENVAT clearing account. set the appropriate rejection code. Procedure 1. Choose . Select Post CENVAT. if you still want to post the excise duty to the normal accounts. In the top line: a. choose Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoices → Individual Processing → Change/Display/Post/Cancel. you can post the excise duty from the CENVAT on hold account to the excise duty accounts. Select Excise Invoice Number. 5. pending the receipt of more information. Day-to-Day Activities To reject an excise invoice. On the Miscellaneous tab. Enter the excise invoice number. Choose Simulate CENVAT. enter a rejection code that posts the excise duty to the normal accounts. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. From the SAP Easy Access screen. To close the dialog box.htm 10/13/2007 . 2. Rejecting Excise Invoices Use Follow this procedure to reject an excise invoice. Then. If you want. once you have checked the excise invoice. the system puts the excise duty on hold.India Page 111 of 224 India → Business Transactions → Incoming Excise Invoices → Maintain Rejection Codes. . 4. A dialog box appears. It: Posts the excise duty to the appropriate accounts Creates the appropriate entries in Part II of register RG 23A or RG 23C Changes the document status (on the Excise invoice tab) to Posted Rejecting Excise Invoices with CENVAT on Hold Use Follow this procedure to reject an excise invoice and post the excise duty to a CENVAT on hold account. b. Result The system posts the excise invoice as normal. 3. choose 6.

India Page 112 of 224 Procedure 1. Select Post CENVAT. Choose Simulate CENVAT. A dialog box appears. the document status is In process On the Miscellaneous tab. 2. From the SAP Easy Access screen. Rejection Accounting Document Definition An accounting document that the system creates when you reject an excise invoice with CENVAT on hold. you see: On the Excise invoice tab. the system creates an accounting document to debit the excise duty to the CENVAT on hold account and credit it to the CENVAT clearing account: file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 5. To close the dialog box. b. but does not create any entries in Part II of registers RG 23A or RG 23C. If you display the excise invoice. 4. . choose Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoices → Individual Processing → Change/Display/Post/Cancel. Use Day-to-Day Activities When you reject an excise invoice with CENVAT on hold. 3. Select Excise Invoice Number. Enter the excise invoice number. Choose Post CENVAT. Result The system creates an accounting document to posts the excise to the appropriate accounts. showing you that the system will debit the excise duty to the CENVAT on hold account and credit it to the CENVAT clearing account. In the top line: a.htm 10/13/2007 . choose 6. enter a rejection code that posts the excise duty to a CENVAT on hold account. you can post the CENVAT on the rejected excise invoice. On the Miscellaneous tab. Choose . there is a link to the accounting document Once the vendor has provided you with the information you need. c.

Result The system: Posts the CENVAT credit as normal Creates the corresponding entries in Part II of the appropriate excise registers. 2. Select Post CENVAT. delete the rejection code. Procedure 1. and you now want to take the CENVAT credit. Reversal Rejection Accounting Document Definition An accounting document that the system creates when you post the CENVAT on a rejected excise invoice. choose Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoices → Individual Processing → Change/Display/Post/Cancel.htm 10/13/2007 . . to reverse the posting to the CENVAT on hold account. Select Excise Invoice Number. the system creates an accounting document to debit the excise duty to the excise duty accounts and credit it to the CENVAT on hold account: file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. To close the dialog box. From the SAP Easy Access screen. Choose . 3. On the Miscellaneous tab. c.India Page 113 of 224 Posting CENVAT on Rejected Excise Invoices Use Follow this procedure if you have an excise invoice that you have rejected. Choose Post CENVAT. Enter the excise invoice number. 5. Choose Simulate CENVAT. The system will credit the CENVAT on hold account. In the top line: a. b. showing you what CENVAT postings will be made. choose 6. with the CENVAT credit on hold. 4. A dialog box appears. Use Day-to-Day Activities When you post the CENVAT. and debit the appropriate excise duty accounts.

Select Material document. In the SAP System.India Page 114 of 224 Reversal of CENVAT Postings Purpose Assume you have posted a goods receipt and then posted the CENVAT on the excise invoice accordingly. You reverse the CENVAT posting on the excise invoice. Then. Process Flow 1. The system changes the excise invoice status to Canceled. Reversing Goods Receipts 1. b. 2. If. If your plant does not allow multiple goods receipts per excise invoice. enter the excise invoice number when you post the goods receipt. Under excise laws. you do not have to cancel it. you have to reverse CENVAT posting correspondingly. you must also cancel the excise invoice. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. that means you are no longer entitled to the CENVAT credit. 2. If you want. if you receive another delivery of goods for this excise invoice. however. Select Cancellation. In the top line: a. From the SAP Easy Access screen. therefore. Then it transpires there is a problem with the goods and the goods receipt has to be reversed. you do allow multiple goods receipts per excise invoice. The system: Creates an accounting document to reverse the CENVAT postings Creates a corresponding entry in Part II of the appropriate excise register 3.htm 10/13/2007 . The system: Creates a reversal document to cancel the goods receipt Creates additional entries in Part I of the appropriate excise register to reverse the original entries Changes the excise invoice document status to In process. you can leave the excise invoice as it stands. choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Movement (MIGO). You reverse the goods receipt.

To close the dialog box. . b. 2. Enter the number of the goods receipt that you want to cancel d. d. or when they send scrap to a vendor. They can also use the transaction when they issue goods to be transferred to another manufacturing plant or depot. your warehousemen can process the necessary excise documents (for example.htm 10/13/2007 . In the top line: a. Choose Post CENVAT. Simulate CENVAT. Select Vendor Excise Invoice. Choose . Enter the excise invoice number. 2. 4. c. or goods manufactured by subcontractors. excise invoices or subcontracting challans) at the same time as they enter a goods movement. From the SAP Easy Access screen. Select Post CENVAT. Flag all of the line items as OK. Select Vendor Excise Invoice. choose 4. choose Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoices → Individual Processing → Change/Display/Post/Cancel. b. Save the excise invoice. Save the reversal document. c. In the top line: a. Choose A dialog box appears. Goods Movements and Excise Documents Combined Use If your business processes require. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Enter the excise invoice number.India Page 115 of 224 c. goods transferred from another plant. 3. Choose . 3. d. 3. Select Cancel. Choose . Canceling Excise Invoices 1. MIGO. Reversing CENVAT Postings 1. Features Users in manufacturing plants can use the transaction when they receive goods from external procurement. From the SAP Easy Access screen. choose Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoices → Individual Processing → Change/Display/Post/Cancel. using the standard Goods Movement transaction. showing which postings the system will make to reverse the CENVAT.

he can only post an incoming or outgoing excise invoice if you have made the appropriate Customizing settings (see below). You can decide whether he can capture the file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. you can only process it further using the other excise invoice transactions. the warehouseman can post incoming excise invoices for goods receipts. In all the above scenarios. and one tab at item level for the excise invoice line item information. the system displays an additional tab at header level for the excise invoice header information. and accounting documents. Activities Customizing You activate this function for each excise group separately. the warehouseman must assign the goods issue to the appropriate folio numbers from the goods receipt (RG 23D selection. One-Step and Two-Step Procedures Use You can customize the system so that the warehousemen can post the necessary excise documents duty (the one-step procedure) or whether you want excise supervisors to do this (the two-step procedure). the transaction supports the one-step and two-step procedures. However. The only form of goods issue that the standard Goods Movement transaction supports is scrap. material documents.htm 10/13/2007 . for which you do not require an outgoing excise invoice. Features This function works slightly differently for manufacturing plants and depots. Depots If you follow the one-step procedure. Day-to-Day Activities When you run the Goods Movement transaction. by choosing Tax on Goods Movements → India → Basic Settings → Excise Groups. he can only capture incoming excise invoices and create outgoing excise invoices. Manufacturing Plants When the warehouseman in a manufacturing plant enters a goods movement. in Customizing for Logistics – General. It creates all appropriate excise register entries. When you save the goods receipt or goods issue. You then fill out the data as required.India Page 116 of 224 Users in depots can use the transaction when they receive goods procured externally or transferred from a manufacturing plant. If you want to follow the two-step procedure. Note that once you have entered an incoming or outgoing excise invoice using the standard Goods Movement transaction. the system also saves the excise invoice (either captured/created or posted). They can also enter goods issues for sending scrap to a vendor. You can also customize the system so that the warehouseman can only post an excise invoice if he does not change any of the excise data proposed by the system.

4. again.India Page 117 of 224 RG 23D selection or post it as well. The excise supervisor follows the standard procedures for posting incoming excise invoices and posting outgoing excise invoices that need to be posted. In addition. Again. 3. Entering Goods Receipts and Excise Invoices Together Use This procedure describes how warehousemen at manufacturing plants enter the receipt of goods procured externally. change the data so that it matches the vendor's excise invoice. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 2. Activities Customizing You can customize different procedures for each excise group. and in addition. on the Excise Invoice tab: a. on the Excise Item tab. Make the settings in Customizing for Logistics – General. You follow the and item level. standard procedure. choose . b. From the SAP Easy Access screen. Set the excise action to Capture Excise Invoice or Capture & Post Excise Invoice. following the standard procedure. In addition. you also enter the excise invoice details at header level Procedure 1. Enter line item data as required. if necessary.htm 10/13/2007 . In the top line. together with the incoming excise invoice. following the standard procedure. by choosing Tax on Goods Movements → India → Basic Settings → Maintain Excise Groups. you can customize the system so that he can only post the data if he does not change the data proposed by the system. choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → GR for Purchase Order. Day-to-Day Activities When the warehouseman enters a goods movement. he can only capture (or create) and post the excise invoice if you have authorized it for his excise group. Enter header data as required. enter the purchase order number and choose . Enter the official excise invoice number and the excise invoice date. If you need to enter any more data.

Save the goods receipt. the system creates: A material document to record the goods receipt An accounting document to debit the inventory account and credit the GR/IR clearing account A Part I entry in register RG 23A or 23C The next step is to post the excise invoice. if you want to post the excise invoice. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. b. 3. when it arrives. In addition. 4. the system also creates: A Part II entry in register RG 23A or 23C A CENVAT accounting document The next step is to post the vendor's invoice. following the standard procedure. The system displays all the information from the excise invoice. Enter line data as required. You enter the goods receipt. Refer & Post Excise Invoice. Enter the official excise invoice number and the excise invoice date. 5. following the number. standard procedure. Enter header data as required. on the Excise Invoice tab: a. From the SAP Easy Access screen. Result If you set the excise action to Capture Excise Invoice. Set the excise action to Only Refer Excise Invoice or. for which you use the Incoming Excise Invoices transaction.India Page 118 of 224 5. In the top line. Save the goods receipt. Choose . choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → GR for Purchase Order. c. You cannot change it. 2. again. enter the purchase order number and choose . and in addition.htm 10/13/2007 . following the standard procedure. Entering Goods Receipts with Reference to Excise Invoices Use This procedure describes how warehousemen at manufacturing plants enter the receipt of goods procured externally if the excise clerk has already entered (captured or posted) the excise invoice using the Incoming Excise Invoices transaction. you enter the excise invoice Procedure 1. If you set the excise action to Capture & Post Excise Invoice.

the Part I entry is incomplete. You can still create an entry in Part I of register RG 23A or RG 23C. It will be entered later on when the excise clerk captures the excise invoice. A Part I entry in register RG 23A or 23C If the excise invoice that you referred to has not yet been posted. 5. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. but the excise invoice number will be missing from it. From the SAP Easy Access screen. Procedure 1. In addition. following the standard procedure. the system creates: A material document to record the goods receipt An accounting document to debit the inventory account and credit the GR/IR clearing account. You enter the goods receipt. when it arrives.India Page 119 of 224 Result If you set the excise activity to Only Refer Excise Invoice. when it arrives. Entering Goods Receipts Without Excise Invoices Use This procedure describes how warehousemen at manufacturing plants enter the receipt of excisable goods procured externally if the excise invoice is not yet available. you also set the excise action as appropriate. 3. If you set the excise activity to Refer & Post Excise Invoice. the system also creates: A Part II entry in register RG 23A or 23C A CENVAT accounting document The next step is to post the vendor's invoice.htm 10/13/2007 . enter the purchase order number and choose . for which you use the Incoming Excise Invoices transaction. on the Excise Invoice tab. Save the goods receipt. again. the next step is to post the excise invoice. Enter header data as required. Result The system creates: A material document to record the goods receipt An accounting document to debit the inventory account and credit the GR/IR clearing account A Part I entry in register RG 23A or RG 23C However. the next step is to enter the vendor's invoice. set the excise action to Part I Only. Otherwise. following the standard procedure. following the standard procedure. and in addition. In the top line. choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → GR for Purchase Order. Enter line item data as required. as the excise invoice number is missing from it. 4. 2.

htm 10/13/2007 . choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → GR for Purchase Order. standard procedure. Save the goods receipt. You enter the goods receipt. enter the subcontract order number and choose . following the as appropriate. From the SAP Easy Access screen. 2. In the top line.India Page 120 of 224 The next step is to capture (and post) the excise invoice. following the standard procedure. Entering Goods Receipts and Subcontracting Challans Together This procedure describes how warehousemen at manufacturing plants enter the receipt of goods from subcontract orders. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 4. Entering Goods Receipts for Nonexcisable Goods Use This procedure describes how warehousemen at manufacturing plants enter the receipt of nonexcisable goods. 5. enter the purchase order number and choose . You enter the goods receipt. In the top line. which is not relevant for subcontracting. again. and in addition. you also enter the subcontracting challan details at header level and item level. 3. following the standard procedure. on the Excise Invoice tab. you also set the excise action Procedure 1. 2. When you do so. and in addition. following the standard procedure. In addition. choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → GR for Purchase Order. Enter line item data as required. Result The system creates: A material document to record the goods receipt An accounting document to debit the inventory account and credit the GR/IR clearing account That is the end of the procedure for nonexcisable goods. Enter header data as required. From the SAP Easy Access screen. for which you use the Incoming Excise Invoices transaction. set the excise action to No Excise Entry. Procedure 1. A dialog box appears. the system automatically links the excise invoice to the Part I entry.

choose . you also enter the excise invoice details at header level and item level. again. and change it if necessary. Enter the subcontracting challan number and the fiscal year. on the Excise Invoice tab: a. In the top line. Save the goods issue. In addition. Procedure 1. choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Issue (MIGO).htm 10/13/2007 . following the standard procedure. 3. If you have activated Immediate Utilization for the series group. Result file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. On the CENVAT Utilization tab. b. following the standard procedure. Enter any other data required. Result The system creates a material document to record the transfer from stock of material provided to vendor to normal stock. and in addition. following the standard procedure. and choose 4. on the Excise Invoice tab: a. In addition. c. check the data on the Excise Item tab. enter the purchase order number and choose . . 5.India Page 121 of 224 3. From the SAP Easy Access screen. Set the excise action to Create Excise Invoice or Create & Post Excise Invoice. b. 2. Enter header data as required. Entering Goods Issues and Excise Invoices for Transport Orders Use This procedure describes how warehousemen at manufacturing plants issue goods for a stock transport order placed by another manufacturing plant or depot. following the standard procedure. 4. Enter header data as required. Choose . Set the excise action to Refer Subcontracting Challan. c. Choose to close the dialog box. specify which accounts you want to pay the excise duty from. The next step is to reconcile the subcontracting challan. Save the goods receipt. Enter line item data as required. In addition. You enter the goods issue.

In the top line: a.India Page 122 of 224 If you set the excise activity to Create Excise Invoice. b. From the SAP Easy Access screen. If you set the excise activity to Create & Post Excise Invoice. following the standard procedure. and if the goods are finished goods) The next step is to post and print the excise invoice. 3. the system also creates: A Part II entry in register RG 23A or 23C A CENVAT accounting document The next step is to print the excise invoice. and in addition. enter the excise invoice details at header level and item level. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 . the system creates: A material document to record the goods issue to stock in transfer An accounting document to debit the manufactured components in stock account at the issuing plant and credit the same account at the receiving plant A Part I entry in register RG 23A or 23C An entry in register RG 1 (if you have customized the excise group accordingly. Choose . 2. Set the excise action to Create RG 23D Entry. Procedure 1. on the Excise Invoice tab: a. Enter header data as required. Enter the official excise invoice number and the excise invoice date. In addition. select Create RG 23D Entry for Existing Excise Invoice. b. Entering Goods Receipts and Excise Invoices Together at Depots Use This procedure describes how warehousemen at depots enter the receipt of goods and the incoming excise invoice for: Goods transferred from a manufacturing plant Goods purchased from a vendor Follow the standard procedure. If you have already entered a partial goods receipt for these goods and have entered the excise invoice already. Enter the stock transport order number or the purchase order number. Set the reference document to Purchase Order. choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → GR for Purchase Order. c.

Save the goods issue. on the Excise Item tab. including the material and plant. the system displays a list of goods receipts of this material that you have already entered. An entry in register RG 23D Entering Goods Issues and Excise Invoices Together at Depots Use This procedure describes how warehousemen at depots issue scrap and assign the goods issue to the appropriate folio number from RG 23D. Enter line item data as required. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Enter header data as required. enter header data as required. In the header. 4. 3. the Excise Invoice tab appears. On the Excise Item tab. 4. again. If you have not yet entered the excise invoice. You can overwrite the proposed quantities.htm 10/13/2007 . and in the detail data. Save the goods receipt. set the reference document to Others. b. From the SAP Easy Access screen. 2. 5.India Page 123 of 224 If you have already entered the excise invoice. the Excise Item tab appears. following the standard procedure. Result The system creates: A material document to record the goods receipt An accounting document to debit the inventory account and credit the GR/IR clearing account. if necessary. In addition. change the data so that it matches the vendor's excise invoice. In addition. In the top line. the system displays the information from the excise invoice created at the manufacturing plant. enter line item data as required. on the Excise Invoice tab: a. together with their folio numbers. choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Issue (MIGO). The list is in chronological order. and choose . Enter any other data required. Otherwise. 5. Procedure 1. You cannot change any of the information at header level or item level. Set the excise action to Only Select RG 23D. following the standard procedure.

India Page 124 of 224 Result The system creates: A material document to record the goods issue An accounting document to credit the inventory account An entry in register RG 23D to record the goods issue Multiple Goods Receipts for a Single Excise Invoice Use Under normal circumstances. the warehouseman posts the goods receipt for INR 400. Activities Working with multiple goods receipts entails the following activities: • Posting goods receipts When you post a second (or third. When the first batch arrives.000. either: As soon as the accounts supervisor has verified and posted the excise invoice. the system will display a warning for each material when you come to post the excise invoice (see Material Master (Excise Data)).000 worth of fuel from a vendor with excise duty at INR 80. When the second batch arrives. Sometimes one excise invoice covers more than one delivery. Features The system allows you to control: • • • Which of your excise groups allow multiple goods receipts (see above) Which materials you allow multiple goods receipts for (see above) When to credit the excise duty on the goods to your CENVAT account. The vendor sends the fuel in two batches. the system prompts you to confirm that this is correct. irrespective of whether the delivery has been made in full Whether to wait until the full quantity has been delivered You have ordered a consignment of INR 800.000 (plus INR 40.000 to your CENVAT account. You do so in Customizing for Logistics – General.000 of duty). if you order a large quantity of oil and the vendor requires several trips to complete the delivery. or fourth) goods receipt for an excise invoice. • Posting excise invoices file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. You have also specified which materials multiple goods receipts are allowed for. If you do not. Prerequisites You have specified the maximum number of goods receipts per excise invoice per excise group. you can credit INR 80.htm 10/13/2007 . the excise supervisor does not post the excise invoice for the quantity delivered. by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Excise Groups. your vendors send you one excise invoice per delivery. for example. and whether you want multiple goods receipts with single or multiple CENVAT credits.

C (consumables). Posting excise invoices When you come to post the excise invoice. In following years. you can credit the CENVAT account for each receipt separately. Capital Goods Use Businesses are allowed to set off excise duty on purchases of capital goods against excise duty on outputs. again in Customizing for Logistics – General. However. you can use a report to identify the capital goods with excise duty on hold and transfer the duty to the CENVAT account (see Transfer of CENVAT Credit on Capital Goods). Transfer of CENVAT Credit on Capital Goods Use file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. you have to set the material type to A (assets).India Page 125 of 224 When you come to post an excise invoice. You must then have specified which G/L account is the CENVAT on hold account. Activities When working with excise invoices that include capital goods. Features When you post an excise invoice that contains capital goods. you must also have specified that you want this transaction to credit the excise duty to the CENVAT on hold account. The system does not round the amount off. unlike with raw materials. Because duty on capital goods is handled using excise transaction type CAPE. If at material level multiple credit is disallowed. the system prompts you to confirm that you want to accept the credit. by choosing Taxes on Goods Movements → India → Account Determination → Specify G/L Accounts per Excise Transaction. you have classified the capital goods as such. Prerequisites In the material master. by choosing Taxes on Goods Movements → India → Account Determination → Specify Excise Accounts Per Excise Transaction. the system posts only half of the excise duty to the CENVAT account. the system posts half of the excise duty to your CENVAT account and posts the rest to a G/L account for CENVAT on hold. Otherwise. and the rest in any year after that. the system displays all the receipts created for the invoice.htm 10/13/2007 . You make this setting in Customizing for Logistics – General. you can only set off half of the duty in the first year. note the following: Capturing vendor excise invoices When you create an excise invoice with capital goods. or T (tools).

Alternatively. from the SAP Easy Access screen. and you can prepare copies of them as and when necessary. Parts I and II Register RG 23D Personal Ledger Account (PLA) This is the bank account from which you transfer any money owing to the excise authorities. enter: Organizational data Data of the documents that you want Output The system displays a list of excise invoices with excise duty outstanding. The SAP system makes all the entries for these registers automatically. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. This is particularly useful in the case of capital goods. Features To access the report. Excise Registers Use The excise authorities require you to maintain a number of registers relating to excise duty. They have to be printed out monthly and shown to the authorities in the event of an audit. you can download the data for processing by non-SAP software. It shows you: The total amounts of the various types of excise duties levied on the excise invoice How much duty has still to be posted to the CENVAT account Select the excise invoices that you want and choose Transfer credit. Selection On the selection screen. Features The SAP system handles the following excise registers: • • • • Register RG 1 Register RG 23A and 23C. If you want to transfer only a portion of the remaining amount. in order to find out how much credit remains from previous years.htm 10/13/2007 . choose Indirect Taxes → Procurement → Excise Invoice → Reports → Balance Credit for Capital Goods.India Page 126 of 224 You use this report to display a list of the vendor excise invoices where the vendor has levied excise duty but you have not posted it (in full) to your CENVAT account. The system creates an accounting document to post the duty to the CENVAT account and creates an entry in the Part II register. • Register RT-12 This is a monthly report that summarizes the CENVAT and PLA information from the other registers. enter this amount as the amount to be credited.

India Page 127 of 224 Activities For information about how to create the registers. MIGO. Part II shows the amounts of excise duty on the materials. The register consists of two parts: • • Part I shows the quantities of the materials. Nor does it generate entries for goods issues. RG 23A and RG 23C for raw materials and capital goods respectively. Periodic Processing Generate the missing entries once a day using the Register Update program. manufacturers were required to keep two separate registers. You have to generate these yourself (see below). file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Activities Customizing If you want the system to generate entries for goods issues entered using the standard Goods Movement transaction. Register RG 1 Definition A register of excisable finished goods kept by manufacturing plants. Register RG 23A/23C Definition A record of receipts and issues of excisable materials. Use The SAP system generates all the necessary entries in the register. It assigns all entries a serial number. Features In most cases. Reporting Prepare a copy of the register as described under Creation of Excise Registers. and to prepare a copy of the register. and how much you have transferred to the CENVAT accounts. except for goods issues entered using the Goods Movements transaction if you have made the Customizing settings described above. Set the material type to Finished Goods in the material masters that you use for finished goods. It generates any missing entries when you execute the Register Update program (see below). as kept by manufacturing plants. by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Excise Groups. Previously. This is no longer the case. Register RG 1 Entries Use The SAP system creates all register RG 1 entries automatically. Day-to-Day Activities The system does not automatically generate entries for goods receipts from production orders. see Creation of Excise Registers. the system does not generate an RG 1 entry at runtime. The register shows goods movements from the factory to a store specifically for excisable finished goods. but the distinction still remains in the system. specify in Customizing for Logistics – General.htm 10/13/2007 .

htm 10/13/2007 . Activities Day-to-Day Activities When you enter a goods receipt for excisable materials. That way.India Page 128 of 224 Use The system generates all the necessary entries in the register. Part II Entries Use Whenever you – as a manufacturing plant – post an incoming excise invoice. the Part I entry does not contain a link to the excise invoice number. If so. The system does not automatically generate Part I entries for goods issues of excisable materials. Activities Day-to-Day Activities The system only creates a Part II entry when you post an incoming excise invoice. Part I Entries Use The SAP system creates Part I entries for all excisable goods movements. The excise supervisors can then check and post the excise invoices posted by file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. It does not create one if you only capture an excise invoice. If the excise clerk has already captured the excise invoice when the warehouseman enters the goods receipt. the system enters the excise invoice number in the Part I entry immediately. the system generates a Part I entry. but only when you use the Goods Movements transaction Periodic Processing Generate the missing entries once a day using the Update of Registers RG 1 and RG 23 (Part I) program. and creates an accounting document for each. with two exceptions: • • When you enter a goods issue for vendor returns When you enter a goods issue for stock transport orders for plants. to transfer the various types of excise duty to the appropriate CENVAT account. you can ensure that excise clerks can capture excise invoices but cannot make any Part II entries. You can prepare a copy of the register as required. If the warehouseman enters the goods receipt before the excise clerk enters the excise invoice. the system automatically creates an entry in Part II of the appropriate register (RG 23A or RG 23C). If not. The system automatically enters the excise invoice number in the Part I entry. Reporting Prepare a copy of the registers as described under Creation of Excise Registers. the system updates the excise invoice number automatically when the excise clerk captures the excise invoice later on. Features The system assigns all Part II entries a serial number. it does not. but you can generate all missing Part I entries later. the system automatically asks you if you want to create the Part I entry in Register RG 23A or RG 23C. However. or create an outgoing excise invoice.

it creates a CENVAT document to debit the excise duty to the excise duty account. and credit it to the CENVAT suspense account: Register RG 23D Definition A record of receipts and issues of excisable materials. by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Company Code Settings. When the system generates a Part II entry for an outgoing excise invoice.India Page 129 of 224 the clerks. Use In procurement. Use Customizing Specify which document type you want the CENVAT documents to use. it creates a CENVAT document to debit the excise duty to the excise duty account. CENVAT Document Definition An accounting document that the system automatically creates when it generates a Part II entry. in Customizing for Logistics – General. as kept by depots. Similarly.htm 10/13/2007 . and credit it to the CENVAT clearing account: The excise duty is cleared from the clearing account when the accounting clerk enters the vendor invoice. when the warehouseman posts a goods receipt. the system also creates a Part II entry when you post an outgoing excise invoice. Reporting All Part II entries are shown when you prepare the excise registers. Day-to-Day Activities When the system generates a Part II entry for an incoming excise invoice. the system creates a register entry. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.

htm 10/13/2007 . You can prepare a copy of the register as required. The system generates all the necessary entries in the register. Example A purchasing clerk places an order with a vendor. the system generates another register entry. Each entry contains a separate line item for each material in the goods receipt. and each line item has its own folio number. you specify which RG 23D entries the goods came from originally. a second lot of goods is delivered. The system creates one entry for each goods receipt. each entry has its own serial number. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. When the warehouseman enters the goods receipt. as follows: The RG 23D entry contains a separate line item for each material in the goods receipt. and each line item has its own folio number. the warehouseman enters the goods receipt in the system. Later that day. Reporting Prepare a copy of the registers as described under Creation of Excise Registers. when the warehouseman posts the goods issue.India Page 130 of 224 In sales. he has to specify which excise invoices were delivered with the goods that are being sold. Register RG 23D Entries Use The system creates RG 23D entries for all receipts of excisable materials. the system generates a Part I entry in Register 23D. The excise duty associated with these items is then added to the customer invoice. when a sales clerk creates a sales order. each of which is numbered with a serial number. the system generates the appropriate RG 23D entry automatically. When you enter a goods issue. and the system creates the RG 23D entry automatically. and when you enter a goods issue. Again. you have to specify which folio numbers are associated with it. Activities Day-to-Day Activities When you enter a goods receipt for excisable materials. Again. Then.

so the serial number is 0002. When the excise clerk selects the RG 23D entries to go with the goods issue. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. it automatically assigns it a serial number. in the example. Parts I and II RG 23D PLA Each excise group defines its own number range intervals. the system generates the following RG 23D entry: Serial Numbers Use The system automatically numbers all entries in the following registers with a serial number: RG 1 RG 23A and RG 23C. 004. Later on. Use Customizing Set up the number ranges in Customizing for Logistics – General.India Page 131 of 224 This is the second RG 23D entry. by choosing Taxes on Goods Movements → India → Tools → Number Ranges. a sales clerk enters a sales order. The folio numbers start at the next available number.htm 10/13/2007 . Day-to-Day Activities Whenever the system creates a register entry.

use the Download Register Data report Prerequisites You have specified in the material master data which materials are to be entered in register RG 1. and Part I of the RG 23A and RG 23C registers. you have maintained the material form in table J_2IRG1BAL as below. Do not make any entries in fields that are not listed below: Field Field entries file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Its main purpose is to update the issue information in the Part I register. Creation of Excise Registers Purpose You follow this procedure to create the excise registers. Part I This report only creates register entries for goods movements that have not already been entered.htm 10/13/2007 . When you need to submit the registers. It is solely for the purpose of updating the registers. Instead. It does not create duplicate entries. Process Flow 1.India Page 132 of 224 Reporting The serial numbers are shown in the excise registers when you prepare them. You cannot print or display these registers using this report. to download the registers. You update register RG 1 and the Part I registers daily. For each of these materials. and the system saves the data to an internal table. which reads the data from this table and prints it out. 2. 3. You run the Register Printout report. Update of Registers RG 1 and RG 23 (Part I) Use You use this report to update the information in the following registers: RG 1 RG 23A. Part I RG 23C. you run the Data Extraction report. This report updates any missing data for the RG 1 register. which is not otherwise tracked by the system.

2. User ID of the person filling out the table. select the line items and choose Simulate. from the SAP Easy Access screen. All quantities in this table are updated in the base unit of measure of the material. choose Indirect Taxes → Registers → Excise Tax → Update RG 23A/C Issues and RG 1. Selection On the selection screen. in the Registers group box Whether you want to run the program in batch mode You can also check what date the data was last extracted. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. normally the date of going live Material Enter P (Packed) or L (Loose). To check if there is enough stock in the specific excise group for the register for issues or receipts. it will show the line items that can be updated in the register. Output The system displays a list of material documents that have not yet been entered in the register. Date of entry Time of entry Features To access the report. you specify: Which documents you want to cover: Enter general organizational details in the Company details group box. Do not leave this field blank. Leave this field blank. in the Document header and Document details group boxes.htm 10/13/2007 . Select the documents that you want to add to the register. Enter details about the documents that you want to include in the register. 1. Leave these fields blank. Which register you want to update. We recommend that you use this option before proceeding.India Page 133 of 224 EXGRP DATUM MATNR FORM WERKS OP FN UOM OP BN UOM CB FN UOM USNAM CPUDT CPUTM Material’s excise group Date from which RG1 report is required.

while those which are not eligible (for example. wherever there is an excise invoice it is picked up and used for RG 1 updating. The system updates the Part I or RG 1 tables with the material documents. if there is not enough stock on hand) will be marked with a red traffic light. For RG 1 issues to sales. The same option can be used for creating entries in RG 23A or RG 23C Part I registers. You can reselect the required line items and repeat the Simulate process. system will pick up only those material documents for which Part I posting has not been done yet. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 3.India Page 134 of 224 Issues and receipts are handled separately based on the following register and classification code combinations: Register Type RG 23A Goods issues IIM IPD IWD RG 23C IIM IPD IWD RG 1 IDH IDE IWE IWT IWO RMA ROP ROP Goods receipts ROP Lines that can be updated in the register will be shown with a green traffic light. Data Extraction Use You use this report to extract the data in order to create the excise registers (see Creation of Excise Registers).htm 10/13/2007 . While creating entries in the register. Select the line items you want and choose Register entry.

You have to maintain the closing balances in the table J_2IACCBAL as on 31 December 2000. Assume you want the extract the registers from 1 January 2001. choose Indirect Tax → Registers → Excise Tax → file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. as they were on the day prior to your extracting the register data. from the SAP Easy Access screen. You make the entries in table J_2IACCBAL as described below: Field EXGRP REGISTER Entry Excise group of the registers Type of register Make an entry for each of the following: RG23ABED RG23ASED RG23AAED RG23CBED RG23CSED RG23CAED PLABED PLASED PLAAED PLACESS DATUM WERKS OP BAL CL BAL EXAMT EXIND USNAM CPUDT CPUTM Date of the closing balance Leave this field blank Leave this field blank Closing balance in the register Leave this field blank Leave this field blank User ID of the person making the entries Date of entry Time of entry Features To access the report.India Page 135 of 224 Prerequisites You have entered the closing balance of the RG23A Part II. and PLA registers in table J_2IACCBAL. RG23C Part II.htm 10/13/2007 .

Selection On the selection screen. If you only want to create an extract for specific registers.htm 10/13/2007 . Download Register Data Use You use this report to download data from the registers listed below onto your hard drive. You can now print it out using the Register Printout report. If you want to find out when an extract was last created. the system will create an extract for all registers. enter data as follows: If you select All registers. Register Printout Use You use this report to print out your excise registers. you must have extracted the data. you specify which excise register you want. select Last extracted dates. Features To access the report. select Select any register and then the registers that you want. The information is file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Prerequisites Before you can print a register. choose Indirect Tax → Registers → Excise Tax → Print Utility Program. Output The system extracts the data. you specify: Which excise group and plant are to be covered Which period of time is to be covered Whether you want the debit entries to the accounts to be shown individually or consolidated for each day Output The system prints out the registers. The system then displays the information in a dialog box. from the SAP Easy Access screen.India Page 136 of 224 Extract. Selection On the first selection screen. On the second selection screen.

choose Indirect Tax → Registers → Excise Tax → Data Download.htm 10/13/2007 . Selection On the selection screen. from the SAP Easy Access screen. you must have updated them (see Update of RG 1 and Part I Registers).India Page 137 of 224 saved in flat file format and can then be processed by non-SAP software to produce registers. For information about how the files are structured. Part I and Part II RG 23D Plant excise details Data Structure of Part I Definition The table below shows the data structure of the file that the system creates when you download the data from Part I. This report covers the following registers: RG 1 RG 23 A and RG 23 C (Parts I and II) PLA Plant excise details You can only download data once. specify: Which data you want to download (in the Register to be downloaded group box) Which documents are to be included (by document date and excise group) The location and name of the file that you want to save the information in (in the File name field) Output The system saves the data in a file on your hard disk. Features To access the report. Structure file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. see: RG 1 RG 23A and C. Prerequisites Before you can download the data for registers RG 1 and RG 23. This solution is thus an alternative to that described under Creation of Excise Registers.

India Page 138 of 224 Field REGTYP Length 1 Use Register A C RG23A RG23C TRNTYP EXGRP SNO SYEAR PDATE MAKTX MENGE MEINS EXNUM EXDAT NAME1 ORT01 PSTLZ EXCCD EXCRN EXCRG EXCDI EXCCO CHAPID P2NO RISIND STATUS 4 2 10 4 8 40 13 3 10 8 35 35 10 20 20 40 20 20 12 10 1 1 Transaction type (GRPO = goods receipt) Excise group Part I serial number Year of serial number Posting date Material description Quantity Unit Excise invoice number Excise invoice date Vendor name City Pin code Excise code number of vendor Excise registration number of vendor Excise range number Division number Excise collectorate of vendor Chapter ID Corresponding Part II entry number Receipt/issue indicator Entry status U D Undeclared material Deleted item file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 .

SNO. EXGRP. TRNTYP. ORT01. the excise amount is shown per excise invoice. TRNTYP. SED. CURR. SYEAR. CESS.htm 10/13/2007 . In case of the Part II credit entries for capital goods. then the excise value per chapter ID is shown in the lines immediately following the Part II entry.India Page 139 of 224 MBLNR MJAHR BWART 10 4 3 Material document number Material document year Movement type Data Structure of Part II Definition The table below shows the data structure of the file that the system creates when you download the data from Part II. SNO. Only the fields REGTYP. These entries have the same Part II serial number. CESS. NAME1. BED. Structure Field REGTYP Length 1 Use Register type A C P TRNTYP 4 Transaction type 57CM 57FC 57NR CAPE CEIV 57F4 completion 57F4 subcontractor goods issue Non receipt of 57F4 Capital goods Canceling the generated excise invoice RG23A RG23C PLA file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. SYEAR. SED. BED. In case of Part II entries for debit and credit (except for capital goods). EXNUM. and CHAPID will have valid values. CURR will have valid values. AED. Only the fields REGTYP. AED. EXDAT. if the excise invoice contains multiple chapter IDs. EXGRP. PSTLZ. EXNUM. These entries have the same Part II serial number. after the Part II entry.

htm 10/13/2007 .India Page 140 of 224 DIEX DLFC GRPO MRDY MRRD Differential excise posting Factory sale and stock transfer Goods receipt (raw material) Reversal without reference Reversal in case of consumption other than production CENVAT reversal for write of cases PLA account adjustment through TR6 challan Excise paid on other movements Excise invoice without PO MRWO TR6C OTHR EWPO EXGRP SNO SYEAR PDATE EXNUM EXDAT NAME1 ORT01 PSTLZ EXCCD EXCRN EXCRG EXCDI EXCCO BED SED AED CESS 2 10 4 8 10 8 35 35 10 20 20 40 20 20 19 19 19 19 Excise group Part II serial number Year of the serial number Posting date Excise invoice number Excise invoice date Vendor/customer/subcontractor name City Pin code Excise code number of vendor/customer/subcontractor Excise registration number of vendor/customer/subcontractor Excise range number (in case of credit entries) Division number (in case of credit entries) Excise collectorate of vendor/customer/subcontractor BED SED AED CESS file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.

India Page 141 of 224 CURR CHAPID P1NO PREPRN CVDIND EXPIND 3 12 10 10 1 1 Currency Chapter id Corresponding part I entry number (in case of credit entries) Preprinted excise invoice number CVD indicator (X = CVD) Export indicator in sales Blank B D N Local sale Export under bond Deemed export Export without bond CAPIND 1 Capital goods indicator A T C Assets Tools Consumable CERTNO 20 (Capital goods only) Field use depends on material type: Assets Consumable Tools Installation certificate number Intimation document number Intimation document number CERTDT ANLN1 REMARKS PROCES STATUS 8 12 50 50 1 Intimation/certificate date (capital goods only) Asset number (for capital goods: assets only) Remarks Process for subcontracting challan Status Space R Normal Reversed RDOC1 RYEAR1 LIFNR 10 4 10 Reference document number Reference document year Vendor number file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 .

htm 10/13/2007 . Structure Field INDCTR Length 1 Use Receipt/issue indicator I R EXNUM EXDAT NAME1 ORT01 PSTLZ EXCCD EXCRN EXCRG EXCDI EXCCO MAKTX MENGE MEINS CHAPID BED SED 10 8 35 35 10 20 20 40 20 20 40 13 3 12 19 19 Supplier's excise invoice number Supplier's excise invoice date Vendor/consignee name City of vendor/consignee Pin code Excise code number Excise registration number Excise range number Division number Excise collectorate Material description Quantity Unit Chapter ID BED SED Issue Receipt file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.India Page 142 of 224 MBLNR MJAHR 10 4 Material document number Material document year Data Structure of RG 23D Definition The table below shows the data structure of the file that the system creates when you download the data from RG 23D.

India Page 143 of 224 AED CURR VBELN PDATE NAME1B ORT01B PSTLZB 19 3 10 8 35 35 10 AED Currency Invoice (delivery document) Invoice date Name of buyer City of buyer PIN code of the buyer Data Structure of Plant Master Data Definition The table below shows the data structure of the file that the system creates when you download the plant master data. Structure Field WERKS NAME1 NAME2 STRAS PFACH PSTLZ ORT01 LAND1 EXCCD EXCRN EXCRG EXCDI EXCCO Length 4 30 30 30 10 10 25 3 20 20 40 20 20 Use Plant code Plant name 1 Plant name 2 Street and house number Post office box Postal code City Country Excise code number Excise registration number Excise range number Division number Excise collectorate file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 .

htm 10/13/2007 . Structure Field MANDT EXGRP SYEAR SERIALN MBLNR MJAHR ZEILE BWART MATNR MENGE MEINS MAKTX RISIND DOWNL DECLRD EXPIND REASON RDOC1 RYEAR1 RIND1 BEDRATE Length 3 2 4 10 10 4 4 3 18 7 3 40 1 1 1 1 40 10 4 1 3 Use Client Excise group Year of the serial number RG 1 serial number Number of a material document Year of material document Item in material document Movement type (inventory) Material number Quantity Base unit of measure Material description Receipt/issue indicator Download indicator Item declared for excise Export type Reason for movement Reference document 1 Reference year 1 Reference document type 1 Basic excise duty rate file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.India Page 144 of 224 Data Structure of RG 1 Definition The table below shows the data structure of the file that the system creates when you download the data from RG 1.

T) dated 28th April. Features file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. It covers both of the following: Annexure This is a list of all the invoices and bills of entry for which you have made a Part II credit posting over the past month. Prerequisites You have maintained the vendor types in the vendor master data. so that they can be are shown on the list.India Page 145 of 224 AEDRATE SEDRATE EXCUR EXBAS EXBED EXAED EXSED CESS STATUS USNAM CPUDT CPUTM AEDAT AENAM 3 3 5 7 7 7 7 7 1 12 8 6 8 12 Additional excise duty rate Special excise duty rate Currency Base value for excise calculation Basic excise duty Additional excise duty Special excise duty Cess amount Register entry status Created by Document entry date Time of entry Changed on Changed by Monthly Return Use The central excise authorities have by vide notification no: 2000-(N. The SAP System offers you a report with which you can prepare the necessary printouts. 1944. 2000.htm 10/13/2007 . For each document. prescribed the form of monthly return under rule 57AE of the central Excise Rules. it shows the information required by the authorities. Abstract This is a summary of the excise information from the annexure.

Selection On the selection screen.) prescribed the form E. for the quarter ending 30 June. enter data as follows: Organizational data Posting dates of the documents to be covered Whether you want to print the annexure or the abstract If you want to print the annexure. To access the report.htm 10/13/2007 . The system offers a report that you can use to print out a return. the details are printed for both inputs and capital goods. the system checks the amount against that service tax and prints it on the header of the form. by all the assessees (as defined under Central Excise Act) on a monthly basis for production and removal of goods and other relevant particulars and CENVAT credit. run transaction J2IER1. Select the section of the form that you want to display and print. as recorded in register RG 23D.India Page 146 of 224 To access the report. Depot Quarterly Returns Report Use Depots (registered dealers) are required by law to submit a CENVAT return at the end of each quarter of the financial year. Plant and a particular month. For a complete ER1 reporting. The return is due on the 15th of the month after the end of the quarter. on the SAP Easy Access screen. You can enter the General Ledger Account Number for the different service taxes. Enter the Last Utilization Period. Activities To access the report. the system reads the last utilization period. If you want to print the abstract. Enter the selection criteria.-1 to be filled with excise authorities. choose Indirect Taxes → Registers → Excise Tax → Depot Quarterly Returns Report. you must also specify whether the report is required for inputs or for capital goods. from the SAP Easy Access screen. choose Indirect Taxes → Registers → Excise Tax → CENVAT Register. If you do not specify a period here. For example. You can run the report for a plant for a particular month. The system displays and prints the various sections of the form for a Registration Number of a plant for a particular month. This is the period during which the excise duty credit has been used for the particular month.R. you must submit the return by 15th July. you must print all the sections. ER1 Report (J2IER1) Use The Government of India vide Notification No 26/2005-Central Excise (N. If you enter the Account Number. The return contains details about the excise duties on deliveries and issues of goods. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. This is based on the Excise Group.T.

which populates the tax and pricing data into the IDoc segments. additions have been made to the following functions of Materials Management system: ● Purchase Order or Scheduling Agreement Processing ● Excise Invoice Capturing After an Inbound Delivery is Created Purchase Order or Scheduling Agreement Processing Use This function allows you to transfer the tax and pricing data to the Supplier Self-Service (SUS) system when the purchaser creates or changes a Purchase Order or a Scheduling Agreement. This method calls the Pricing Function Module. The following documentation describes these aspects of the component.India Page 147 of 224 Supplier Self-Services Purpose The Supplier Relationship Management (SRM) component covers the most important laws and business practices specific to India. The IDoc is then transferred to the adapter in the XI system. To enable these enhancements.htm 10/13/2007 . in order to populate the pricing condition in segment E1EDP05 of IDoc ORDER02. in order to do the mapping. The BADI has a Method . ● In XI. Vendor needs to review the applicable taxes in the purchase order. there are additions of data types and data type enhancements. the tax and pricing information that are populated in E1EDP04and E1EDP05segments of the ORDERS02 IDoc have to be mapped to structures of Message Type PurchaseOrderRequest. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. The processing function module IDOC_OUTPUT_ORDERS then populates the segment E1EDP05. Whenever a vendor dispatches the material. These data type enhancements become a part of PurchaseOrderItem as an extension and can be used for mapping. an Excise Invoice should accompany the goods. In Integration Repository (Design). Prerequisites While processing a Purchase Order. the structures for tax and pricing do not exist. corresponding data types are defined.PROCESS_IDOC_SEGMENT. following new segments are added to the ORDERS02 IDoc (new Purchase Order) and ORDCHG IDoc (changed Purchase Order): E1EDP04for tax data E1EDP05for pricing data ● The function module IDOC_OUTPUT_ORDERS has a BADI MM_EDI_ORDERS_OUT. The Indian tax laws require that excise duty should be paid by the buyer when the goods leave the vendor’s site. you must create a view. using transaction WE32. Only those tax and pricing conditions marked with X for print in tax and pricing procedures are passed to the SUS system. In XI. Hence. Features ● To transfer tax and pricing data to the Supplier Self-Service (SUS) system. for IDoc ORDERS02 and make the segment E1EDP05 as mandatory.

Excise Invoice Capturing after an Inbound Delivery of the ASN Use When the vendor creates an Advance Shipping Notification (ASN) in the Supplier Self-Service (SUS) system. including register RG 23D. If the excise invoice has already been captured automatically. The IDoc for Inbound Delivery is DELVRY01. Sales and Distribution (SD) Purpose The Sales and Distribution (SD) component covers the most important laws and business practices specific to India. Country Template file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. ○ Using transaction MIGO for capturing the Goods Receipt with respect to the Inbound delivery number of the ASN. whenever there is an Inbound Delivery of ASN. there is an Inbound Delivery in the system of the purchaser. posting. The following documentation describes these aspects of the component. The system offers functions for domestic and export sales from factories and depots. You can remit the excise duty using the delivered functions. including exports under excise regulations. customized to your own requirements. these transactions do not allow the capture of the vendor excise invoice. All goods movements are recorded in the appropriate excise registers. You can create outgoing excise invoices. The purchaser can manually capture the Excise Invoice in the following ways: ○ Using transaction J1IEX with respect to Inbound delivery number of the ASN.htm 10/13/2007 . Features Country-Specific Functions Country Version India comes with functions for calculating. The system defaults all excise invoice details from SUS. and make the appropriate accounting postings. The purchaser can capture the Excise Invoice with respect to the Inbound Delivery in the following ways: • • The purchaser can configure the system to automatically run the transaction J1IEX with Vendor and Plant combination.India Page 148 of 224 ● The adapter converts the IDocs into XML messages and sends them to the Supplier Self-Service system. and remitting excise duty: The system determines the excise and other taxes on your sales.

in which case you levy excise duty when the goods leave the factory on their way to the customer.htm 10/13/2007 . including all taxes. in India. away from the factory at which they were produced. You must create at least one series group in order to be able file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. for example: • To be sold to a customer • To be transferred to another of your plants The excise invoice lists the goods that you have issued and states how much excise duty applies. and an excise invoice number. The serial number must be printed on each page of the excise invoice. starting each year on 1 April. you can also create them in batches (see Creation of Excise Invoices in Batches). As well as creating excise invoices individually. you have to number your outgoing excise invoices in sequential order. which is not assigned until you have verified and posted it. you create the excise invoice with reference to a pro forma commercial invoice. The system offers separate functions for these purposes (see Other Outward Movements). Structure Numbering of Excise Invoices Outgoing excise invoices have two numbers: an internal document number. Excise Invoice (Outgoing) Definition A business document. however. If. • Sales (other goods movements) Some other goods movements may also require you to create an excise invoice with reference to other documents. If you want to send the commercial invoice after you have dispatched the goods. Use In the system. For more information about these procedures. As far as the excise invoice number is concerned. For more information. You must notify the excise authority of the jurisdiction of the invoicing location. see Sales from Factories. you have to levy the excise duty when you transfer the goods from the factory to the depot. that you prepare when you issue excisable goods from a manufacturing plant.India Page 149 of 224 The country template for India comes with sample pricing procedures. In this procedure. which is assigned immediately you create an excise invoice. and then make sure this is passed on to the customer when it makes a purchase. see Sales from Depots. 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. when you send the goods to the customer. • Sales from depots A depot is a site at which the goods are stored. you create the excise invoice with reference to the commercial invoice. Your customer uses the excise invoice to claim back the excise that it has paid from the excise authorities. you enclose the commercial invoice. and settings for automatic account determination to the appropriate excise accounts. Each number range is governed by a series group.

Pricing Use When you create a sales document. and withholding tax.India Page 150 of 224 to number the excise invoices. Customer Master (Country Version India Data) Definition The part of the vendor master record where you record information about a vendor relating to sales tax.htm 10/13/2007 . including any excise duties and sales taxes. by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Excise Registrations. 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. Use When you have entered the customer that you want to process. by choosing CIN Details. from the SAP Easy Access screen. excise duty. if the excise invoices are to be printed on prenumbered forms). by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Series Groups. choose Logistics → Sales and Distribution → Master Data → Business Partners → Customer → …. There are three separate tabs. if there is one) and then calculate all forms of excise duties and sales taxes on the goods. one for each sort of tax. Excise Duties file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. If you need more than one number range. the system automatically determines the price of the goods you are selling. To access the vendor master. in Customizing for Logistics – General. you can access the excise data from every screen. If you prefer. you can also maintain this data in the Excise Rate Maintenance transaction (see Customer Master (Excise Data)). Features 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) These pricing procedures determine the net price (or the assessable value. You can customize the system so that it prints the excise invoice accordingly. you must create the corresponding number of series groups. You do so in Customizing for Logistics – General.

there are three separate condition types as follows: Excise duty Basic Additional Special Cess Ad valorem JEXP JEAP JESP JCEP Specific JEXQ JEAQ JESQ JCEQ Total* JEXT JEAT JEST JCET * These condition types show. material Country. ship-to party Country. chapter ID* Country. The system determines the central sales tax using the access sequence JCST. The excise conditions are determined using the access sequence JEXC. one for the basic tax (JCST and JLST respectively). Both access sequences use the following condition tables: file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. When you enter a material's chapter ID in the material master. chapter ID. plant. When you create a condition record for the sales taxes. you can define customer tax classifications in Customizing and create condition records for each classification. so that you can create excise condition records for all of the following combinations: Table 362 357 358 371 369 372 Conditions Country. Sales Taxes For central sales tax and local sales tax. chapter ID. When you create a condition record. plant. It is the values in these condition types that the system uses in follow-on documents.India Page 151 of 224 For each form of excise duty. for example. and local sales tax using the access sequence JLST.htm 10/13/2007 . If you want to create condition records for different types of customers. customer tax classification Sales organization. those that qualify for concessional tax rates and those that don't. there are two condition records each. reference document and item * The chapter ID is stored in the control code field. plant. and one for surcharges (JCSR and JLSR). This access sequence contains the following condition tables. the total basic excise duty on the goods (ad valorem duty plus specific duty). you must specify a tax code that you want the tax to be posted under in Financial Accounting (FI). All of these condition types are discount surcharge conditions and are posted using the accounting key EXD. the system copies the chapter ID to the control code field. chapter ID. plant. chapter ID Country. These are all tax conditions and are posted with the account key MWS or MW3. the field name is control code. for example.

The system only allows users to create a pro forma excise invoice if the delivery is complete. region of delivering plant. There are special procedures for customers in possession of exemption forms. following the standard procedure. you set the appropriate delivery type (see above). Prerequisites In order for the system to be able to copy the information from document to document. material tax classification Sales from Factories Purpose This process describes how the SAP system handles sales from factories. again. On the initial screen. In addition. plant. region of ship-to party. Process Flow The sales clerk creates a sales order. The warehouseman enters the goods issue. allowing for the creation of excise invoices. by choosing Taxes on Goods Movements → India → Business Transactions → Outgoing Excise Invoices → Assign Billing Types to Delivery Types. • At a later date The document flow would be OR – JF (delivery type. depending on whether you want to send the commercial invoice along with the delivery or at a later date.India Page 152 of 224 Table 359 367 368 Conditions Plant. a copy of LF) – JEX (pro forma billing document type. the document flow would be OR (standard sales order type) – LF (standard delivery type) – F2 (invoice). following the standard procedure. Two sample pricing procedures are provided for this sales procedure.htm 10/13/2007 . material Country. a copy of document type F8) – F2. customer tax classification. material group Country. which you have to send with each delivery that is subject to excise duty. you must also have maintained the settings in Customizing for Logistics – General. This differs according to when you want to send the commercial invoice: • Along with the delivery In this case. The shipping clerk creates a delivery. region. you must have set up the copying control procedures in Customizing for Sales and Distribution (SD). There are two scenarios. so as to file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. J1INFAC (condition-based excise determination) and JFACT (formula-based excise determination).

the shipping clerk: i. The system does not make any accounting postings at this stage. Activities Customizing Activate the function in Customizing for Logistics – General. you create the invoice. Specify which CENVAT accounts the system is to post the different types of excise duty to. Automatic Creation of Excise Invoices Use The 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. Creates an invoice. Creates the pro forma excise invoice The pro forma excise invoice is only required for technical purposes and is not sent to the customer. in Customizing for Logistics – General. you can also have the system create them automatically. When the time comes to invoice the customer. If the invoice is to be shipped with delivery.htm 10/13/2007 . Alternatively. the shipping clerk: iii. Creates an excise invoice from the pro forma excise invoice In both these cases. iv. by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Excise Groups. Creates an excise invoice from the invoice If the invoice is to be sent on at a later date. This function applies to excise invoices for sales from factories only. following the standard procedure. by choosing Taxes on Goods Movements → India → Business Transactions → Utilization → file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. following the procedure. you can combine the delivery items in a single invoice (if the standard requirements are met). you can create them in batches. the system creates an accounting document to post the excise duty to a clearing account. 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.India Page 153 of 224 prevent them from creating multiple pro forma excise invoices. Instead of creating excise invoices manually. You ship the goods. standard Irrespective of the number of excise invoices that you have issued. ii.

Specify which excise group and series group the excise invoices are to be created for. Day-to-Day Activities When you post an invoice.htm 10/13/2007 . the sale is marked as a deemed export. you can use different excise rates for a sale transaction. Activities If you make a sale to a customer that is in possession of an exemption form. the excise value will be recalculated at the normal rate. No excise duty is debited to the CENVAT account. Exemption Forms Use Some customers may be liable to excise duty at reduced rates or exempt from it altogether (for example. in Customizing for Logistics – General. However. Activities When you come to create the 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. you have to record the form number in the sales order. and the system generates an outgoing excise invoice. Such businesses must provide you with a copy of their exemption forms in order to claim their exemption. the excise value is zero in the pro forma excise invoice document. Based on the customer tax classification status. by choosing Taxes on Goods Movements → India → Business Transactions → Outgoing Excise Invoices → Maintain Default Series Groups and Excise Groups. the system creates an excise invoice. Even though the excise duty is zero. See also: Form Tracking Export-Oriented Units Use Any sales that you make to export-oriented units (EOUs) require special treatment by the SAP System.India Page 154 of 224 Utilization Determination. If the form has not been submitted by the time you create the pro forma excise invoice. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. It also determines the excise invoice type automatically. The system then automatically applies the appropriate rate of excise duty. using the customer tax classification fields. when you print the excise invoice. customers abroad). Prerequisites You have maintained a zero-rate excise duty indicator for customers that qualify as 100% EOUs. and so no accounting entries are generated. the system calculates the duty for the purposes of printing. When you create the sales order. enter the form.

If you want to see how much credit is available on your CENVAT accounts – and if there is enough to cover the excise duty that you will incur when you create the excise invoices – choose Account balances. the amount short is shown under Deficit. Selection On the selection screen. When you know which documents you want to process. Output A list of commercial invoices and pro forma excise invoices appears. The excise invoices are then created in the background.htm 10/13/2007 . Features To access the report. If the CENVAT accounts do not contain enough credits to cover the excise duties. specify which billing documents (invoices or pro forma excise invoices) you want to create excise invoices for. by choosing Basic Functions → Output Control → Output Determination → Output Determination Using Condition Technique → Maintain Output Determination for Billing Documents. 2. choose Indirect Taxes → Sales/Outbound Movements → Excise Invoice → For Sales Order → Batch Utilization. Printout of Excise Invoices Use You use this report to print outgoing excise invoices. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. A dialog box appears with the following information: The amounts under Balances are the amounts available on the CENVAT accounts. instead of creating each one individually (see Sales from Factories). which you process as follows: 1. from the SAP Easy Access screen. Prerequisites You have: Customized the output for billing documents You can do so in Customizing for Sales and Distribution (SD). The amounts under Utilization are the total amounts of the excise duties to be levied. select them and choose Batch utilization.India Page 155 of 224 Creation of Excise Invoices in Batches Use You use this report to create excise invoices for batches of invoices and batches of pro forma excise invoices.

from the SAP Easy Access screen.htm 10/13/2007 . but in the Billing type Creating Excise Invoices Use This is the standard procedure that you follow to create an outgoing excise invoice. You create the excise invoice from a reference document: either an invoice. Maintained condition records for the output You can do this in Logistics → Sales and Distribution → Master Data → Output → Billing Document → Create. select Excise invoice. Selection On the selection screen. The driving program is J_1IEXCP. Prerequisites You have: Customized the rounding-off indicator for sales transactions Specified which exchange rate type to use for export invoices You make both of these settings in Customizing for Logistics – General.India Page 156 of 224 You can use output type J1I0 and the SAPscript form J_1I_EXC_INVOICE. select Incl. printed excise inv. If any of these are reprints. select it and choose . you have the following options: To display an excise invoice. Creating Pro Forma Excise Invoices You create a pro forma excise invoice as you would field. create any other billing document. by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Company Codes. To print an excise invoice. or a billing document. enter the numbers of the excise invoices. This ensures that output gets copied to all the excise reference documents. The output determination has been set up for the billing document that is used as the excise invoice reference. select it and choose . choose Indirect Taxes → Sales/Outbound Movements → Excise Invoice → For Sales Order → Print. Procedure file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. a pro forma excise invoice. Output From the list of excise invoices. Features To access this function.

choose To enter texts for the excise invoice. 4. which you can change if necessary by choosing you how much excise duty will be charged on the sale. . for delivery → Create. It also shows file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. choose . you can search for it by choosing 3. Due list. The excise invoice screen appears. 6. If a company defaults in the fortnightly payment of CENVAT. To access this function. This is also the case for some export removals where you claim the refund from DGFTA. To check if the utilization is done properly and the document is ready for posting. which the system has copied from the reference document. the excise collectorate can enforce an immediate payment of excise. If you do not know the document number. choose Indirect Taxes → Sales/Outbound Movements → Excise Invoice → For Sales Order → Outgoing Excise Invoice Create/Change/Display → … If you want to create the excise invoice with reference to a pro forma excise invoice or commercial invoice. 5. 8. choose . inv. Save the excise invoice. If you want to create the excise invoice with reference to a delivery note. choose Excise Invoice → Create. Prerequisites You can enable the immediate utilization of CENVAT. To display the utilization details. Excise Duty Utilization Use When you create an excise invoice. in which case you need to pay the duty immediately. choose . 2. Features The information is shown in two group boxes: Excise details This shows you the excise invoice type.India Page 157 of 224 1. From the SAP Easy Access screen. Enter the number of the reference document. 7. Enter header data as required. To display the balances of the CENVAT accounts. the line items. Alternatively. 9. choose Balances. the system allows you to display the information about the excise duty. you may have excess CENVAT credit and want to pay the duty immediately and not wait for a fortnight. including which CENVAT accounts the excise will be debited to. Choose . are displayed at the bottom. by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Series Groups. in Customizing for Logistics – General. The header data is displayed at the top.htm 10/13/2007 . choose Exc. Balance utilization .

Features In the system. The system recalculates the excise duty according to the excise invoice type (see below). It first takes the RG 23 accounts. see Excise Bonding.India Page 158 of 224 This shows you which CENVAT accounts the excise duty will be debited to. Deemed exports file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. The excise invoice is created with an export excise invoice number. The cess component of excise can only be taken from the PLA. The system does not create any Part II entries. but the postings are made to intermediate accounts for excise duty. These excise invoices are not listed further during fortnightly payment of CENVAT. you can change the default utilization proposal. If immediate utilization is off for the series group. or No bond. whether they are for export under bond. For more information about these processes. What happens next depends on the excise invoice type: Exports under bond The system sets the excise duty to zero and generates an outgoing excise invoice. or export under rebate. deemed export. The system automatically proposes which CENVAT accounts it is to debit the excise duty to. when you set the excise invoice type. the system picks up these invoices and allows payment of CENVAT. To do so. You can decide from which register to pay the amount. the system proposes the excise duty values directly in the RG 23A fields. or if they are for export. follow this procedure: Set the excise invoice type to Deemed. When you then run the fortnightly payment program. if you need to change the excise invoice type. Entries are posted into a dispatch register. and if there is not enough credit to cover it. the system generates Part II entries in the appropriate registers. If immediate utilization is active for a series group. When you save the invoice. it debits the remainder to the personal ledger account (PLA). For information about debiting the excise duty to a different company. Choose Calculate Tax. it controls: • • How the excise duty is calculated Which ARE documents you process the export with Activities When you come to create an excise invoice for an export sale. it translates the assessable value into the local currency as at the excise invoice date. It does not generate any entries for the Part II register. Bond. see Intercompany Excise Duty Utilization Excise Invoice Type Use The excise invoice type denotes whether the goods are for the domestic market.htm 10/13/2007 .

Save the adjustment posting.htm 10/13/2007 . 3. The first company has to create an excise invoice. From the SAP Easy Access screen. choose Indirect Taxes → Excise JV → Create → Cancel exc. assume one company code places a sales order. from where you will sell them. This information will be used when the Part II registers are downloaded. in this scenario. inv. it numbers it as a domestic excise invoice. the excise invoice is created with an export excise invoice number. and series group of the excise invoice that you want to cancel. and calculates the excise duty as normal. Nonbonded exports The system applies the tax code defined in Customizing for Logistics – General. When the system creates the excise invoice. 2. A dialog box appears. year. Canceling Excise Invoices Use You follow this procedure in order to cancel an outgoing excise invoice. with reference to the intercompany billing document. under Taxes on Goods Movements → India → Basic Settings → Determination of Excise Duty → Maintain Excise Defaults. or you may first ship them to a separate location for storage (a depot). Excise on Intercompany Billing Documents Use The SAP System allows you to create an excise invoice for intercompany billing documents. as described under Sales from Factories. Procedure 1. Choose Yes. or Indirect Taxes → Sales and Outbound Movements → Excise Invoice Create/Change/Display → . 4. Again. For example. and the goods are delivered to another.India Page 159 of 224 The excise to be paid will be zero. Sales from depots are handled differently from sales from factories because of excise law: Excise duty is payable file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. It reverses any excise duty accounted for. Sales from Depots Purpose You may sell finished goods directly from the place of manufacture. The second procedure is described here. Enter the number.

by choosing Purchasing → Purchase Order → Set Up Stock Transport Order The copying control for copying stock transport order NL to excise invoice JEX Make this setting in Customizing for Logistics – General. following the standard procedure. 4. In the Material document field. You create the invoice. if you have selected the wrong excise invoices. Alternatively. You create the delivery. 2. Choose More documents to go the excise invoice details screen. 3. the excise registration. You create the sales order. Process Flow 1. Creating Excise Invoices for Stock Transfers 1. The item category NLN (standard transport order) so that it is relevant for billing You do this in Customizing for Sales and Distribution (SD). you can cancel the assignment. enter the goods receipt number and choose . 4. 3. but it is not levied again when you sell the goods. The standard pricing procedures for depot sales are J1INDEP (condition-based excise determination) and JDEPOT (formula-based excise determination). 2. The system displays the information from the goods receipt. by choosing Taxes on Goods Movements → India → Business Transactions → Outgoing Excise Invoices → Assign Billing Types to Delivery Types. Enter the internal document number of the excise invoice sent by the factory. In the depot it is possible to have a separate excise invoice at line item level. The system copies the items from the goods receipt document. You verify that you have selected the correct excise invoices and post them. the sending plant. in Customizing for Materials Management (MM). 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.India Page 160 of 224 when you send the goods from the factory to the depot.htm 10/13/2007 . the division. for example. You need to register the A certificate details in the RG 23D register and the excise recovered from the customer. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 5. You assign excise invoices to the delivery or material document. Choose Details. and the collectorate. following the standard procedure. by choosing Sales → Sales Documents → Sales Document Item. again. Prerequisites You have customized: Stock transport processing. the range. From the SAP Easy Access screen. 5. following the standard procedure. Sometimes when you make a final sale of goods from a depot. choose Indirect Taxes → Procurement → Excise Invoice → For Depot → Create/Change/Display.

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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. The system creates an entry in register RG 23D.

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

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been used in any sales.

Creating Additional Excise Entries at Depots
1. From the SAP Easy Access screen, choose Indirect Taxes → Procurement → Excise Invoice → For Depot → Additional Excise Entry at Depot. 2. In the Internal exc. inv. no. field, enter the internal excise invoice number at the depot along with the year, and choose . The system displays the information from the excise invoice which has already been created at the depot, including the excise group, vendor excise invoice number, ship from, and all the receipt against that excise invoice, highlighting the RG 23D folio and serial numbers. An excise invoice item can have multiple A certificates attached to it. The A certificates will have the same folio number as the original line item, but the serial numbers will be different. A hierarchy icon differentiates the additional lines for an item line. 3. You can maintain the A certificate number, date, and additional BED, AED ,SED and CESS for a given RG 23D Folio. 4. After entering an A certificate you cannot delete the A certificate from the system, but you can change it until it is picked up during removals from the depot. 5. If some of the values in an A certificate are incorrect, you can make the values zero so that they do not have an impact on the final excise value. 6. Once an A certificate is used for removals then it cannot be changed. 7. Save additional excise entry. The system creates an entry in register RG 23D. Folio number generation must be active for you to make use of this supplementary invoice functionality at depot.

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.

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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.

Verifying and Posting Excise Invoices Assigned to Delivery
Use
You follow this procedure to verify that the correct excise invoices have been assigned to a delivery. If everything is correct, you can then post the delivery.

Prerequisites
You have selected which excise invoices are to be assigned to the delivery and have posted the goods issue.

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 → Verify/Post. 2. Enter the number of the delivery that you want to verify and choose . 3. Make sure that the information is correct. 4. Save the data. The system updates the posting flag in the RG 23D register.

Other Outward Movements
Use
In the standard procedure for creating outgoing excise invoices (see Sales from Factories), the excise invoice is created with reference to a delivery note or an invoice. The system also allows you to create an excise invoice with reference to various other documents, as follows: • Goods issue documents (for example, transfer postings)

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Vendor excise invoices (for when you return faulty goods to a vendor, for example)

• Factory excise invoice (for sales returns) In addition, you can create an excise invoice without reference to any document at all.

Prerequisites
You have specified, per excise group, whether you want to create these excise invoices in one or two steps (see below). You do so in Customizing for Logistics – General, by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Excise Groups. You have also specified the maximum number of items allowed per excise invoice, in Customizing for Logistics – General, by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Excise Registrations.

Features
Depending on your Customizing settings, you create excise invoices in a single step or in two steps, as follows: • • In the two-step procedure, the excise clerk first creates the excise invoice, but no postings are made. An excise supervisor then verifies that the invoice is correct and, if so, posts it. If the excise clerks are more experienced, you may want to use the one-step procedure, which is quicker, but more prone to error.

In this case, when you create an excise invoice, the system automatically posts it in the background.
Note that the functions for creating and canceling these excise invoices are different from those for other excise invoices.

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: Reference group box Specify which document you want to create the excise invoice for and which excise group it is for. 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:

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htm 10/13/2007 . choose Indirect Taxes → Sales/Outbound Movements → Excise Invoice → For Other Movements → Post Excise Invoice. Verifying and Posting Excise Invoices Use You follow this procedure to verify that the information in an excise invoice that has already been created. From the SAP Easy Access screen. To display the balance available on the CENVAT accounts. The excise duty that is to be posted is displayed at the foot of the screen. 2. To pick the rate and amount from a specific excise invoice. Save the excise invoice. and to post it once you are satisfied. A dialog box appears. Creating Excise Invoices for Stock Transfers file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. choose Get excise invoice. asking you to confirm whether you want to delete the excise invoice. 2. 4. Save the excise invoice. Choose Release to accounting. 7. If you are using the one-step procedure. The system generates the accounting documents. To print the excise invoice. Choose Yes. Choose . Enter the internal document number. The system displays the excise invoice.India Page 165 of 224 Material Quantity Unit of measure Base value Excise duty 6. the system creates and posts an excise invoice. Canceling Excise Invoices 1. 4. From the SAP Easy Access screen. 6. choose . 3. the system saves the information but does not make any postings: it now has to be verified. which you can change if necessary. Enter the internal document number of the excise invoice. 7. Procedure 1. choose Indirect Taxes → Sales/Outbound Movements → Excise Invoice → For Other Movements → Create/Change/Display → . Otherwise. 3. 5. choose . To access the balance utilization. choose Account Balances.

choose Indirect Taxes → Sales/Outbound Movements → Excise Invoice → For Other Movements → Create/Change/Display → . enter data as required. 7. For more information about this function. type: MATD (Material document) Doc. 2. If you are using the one-step procedure. the system saves the information but does not make any postings: it now has to be verified. Making a Transfer Posting Use In this procedure.India Page 166 of 224 Use Follow this procedure to create an outgoing excise invoice for a stock transfer to another plant. Check the data. number: Transfer posting number Vendor: Leave this field blank Customer: The customer account number of the receiving plant 3. The system copies the details from the transfer posting. Otherwise. 2. 4. Choose To purchase order. including: Ref. 6. you make a transfer posting for the goods ordered by another plant. From the SAP Easy Access screen. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 3. Choose Movement type → Transfer posting → Plant to plant → To stock in transit. Save the transfer posting. In the dialog box. On the selection screen. doc. For each item: Enter the net assessable value Check and change the excise duty rates 5. Choose . Enter the number of the issuing plant and storage location. choose Logistics → Materials Management → Inventory Management → Goods Movement → Transfer Posting. For more information about this function. Procedure 1. enter the number of the stock transport order that the receiving plant created and choose . Procedure 1.htm 10/13/2007 . the system creates and posts the excise invoice. 5. From the SAP Easy Access screen. see Other Outward Movements. see Entering the Removal from Storage at the Issuing Plant. Save the excise invoice. 4.

htm 10/13/2007 . There are two ad-hoc reports that you can use for tracking bonds and ARE-1s: Bond Summary Report and Aging Analysis for ARE Documents. You can only issue an ARE-1 under a bond. and you must complete the export within the export period. You use the same function to process all ARE documents. and which features are common to all ARE documents. all exports must be accompanied by the appropriate paperwork. The system handles AREs and the appropriate permit documents.India Page 167 of 224 Exports Under Excise Regulations Use Manufacturing plants are entitled not to pay any basic excise duty on export sales. To process and track ARE-1s. Exports Under Bond Use One of the ways of exporting goods without paying basic excise duty is to obtain an excise bond from the excise authorities and then fill out an ARE-1 document to go with every export. including an ARE-1 document. see ARE Documents. Reporting There are two statutory reports that you prepare at least once a month. The system does not handle exports to Nepal and Bhutan. Pro Forma of Running Bond Account and file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. under Tax on Goods Movements → India → Business Transactions → Exports Under Excise Regulations → Exports and … → Printouts of ARE Documents. For information about how to use the function in general. as long as the goods are accompanied by an ARE document. following the process described under ARE-1 Processing. Master Data Enter your excise bonds in the system. such as export bonds and deemed export licenses. The system automatically keeps track of the bond balance. use the ARE Documents functions. Activities Customizing Carry out the IMG activities in Customizing for Logistics – General. Day-to-Day Activities In order to qualify for an exemption from excise duty. Features The system allows you to process three types of exports: • • Exports under bond Exports under claim for rebate • Deemed exports You must create an ARE document for all goods that you export under these schemes. which are subject to separate legislation.

The system numbers each bond automatically. Each bond also has an official bond number. When you post an ARE-1. you can close it. An excise bond covers a fixed amount of excise duty. Reporting You can use the system to prepare two statutory reports. Activities Customizing Maintain the number range object for the internal bond number in Customizing for Logistics – General. by choosing Tax on Goods Movements → India → Tools → Number Ranges. the Pro Forma of Running Bond Account and the Statement Regarding Export of Excisable Goods.htm 10/13/2007 . unless stated otherwise. In the case of running bonds. the bond balance decreases automatically. Bond Numbering Use When you create an excise bond. Once an excise bond is no longer of any use to you. enter it in the system. Use Master Data When you obtain a bond from the excise department. the term "excise bond" also covers letters of undertaking. if it expires or if you have exhausted a fixed bond. One further report. gives you an overview of all of your bonds. Master Data file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. the system automatically warns you of any reservations that have already been made against the bond. the Bond Summary Report. the balance increases again when you close the ARE-1. The excise duty of the goods exported under bond cannot exceed the bond value.India Page 168 of 224 Statement Regarding Export of Excisable Goods. for example. Day-to-Day Activities When you assign an ARE-1 to a bond. and all of the excise bond functions apply equally to letters of undertaking. The system keeps track of the bond balance for you. Excise Bond Definition A document that effectively licenses a manufacturing plant to remove goods from its premises without paying basic excise duty. This prevents any users from using it afterwards. the system automatically assigns it an internal bond number. In the system. on condition that the goods are then exported.

use the Pro Forma of Running Bond Account. When you save the bond. Day-to-Day Activities If you do not have a fast credit agreement. by choosing Tax on Goods Movements → India → Business Transactions → Exports Under Excise Regulations → Exports → Make Settings for ARE-1 Procedure. you enter the official bond number manually. If you want to check the debits and credits on a running bond. the system automatically assigns it a new internal bond number. the bond is exhausted. which reduces the bond balance. the system credits the excise duty back to the bond automatically. Fast Credit Use When you close an ARE-1 covered by a running bond. Every time you post an ARE1. When the balance reaches zero. the system reduces the bond balance automatically. the system automatically credits the excise duty back to the bond (but see also Fast Credit). the system credits the excise duty back to the running bond when you enter the Arrived Back date (see Updating ARE-1s). This procedure is known in the system as fast credit. However. Bond Balance Use Each excise bond only covers a limited amount of basic excise duty. the bond value. Features Every time you post an ARE-1 under a fixed bond. enter this information in Customizing for Logistics – General. Running bonds. are automatically replenished: Once an export is complete and the excise department sends you confirmation that the ARE-1 is correct. You can check the bond balance at any time in the bond master or the Bond Summary Report. on the other hand. some local excise departments may allow you to credit the excise duty back as soon as you receive the countersigned ARE-1 back from the customs department.India Page 169 of 224 When you enter an excise bond. the system credits the excise duty to the running bond when you close the ARE-1. Reservations file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Activities Customizing If you have a fast credit agreement with its local excise department. With fast credit. the system debits the excise duty stated on the ARE-1 to the bond.htm 10/13/2007 .

that other clerks have already created other ARE-1s under a bond and that they intend to post them under this bond as well. It serves to warn you. you have set the excise invoice type to Export Under Bond. He then calls the local excise department and asks them to send an excise officer to check the goods. You have received a sales order from a customer located abroad. What you should know Close an excise bond → Close ARE-1 Processing Purpose This procedure describes how you process ARE-1s for exports under bond. If the reservation amount is already over the bond balance. When you do so.htm 10/13/2007 . file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Prerequisites You have an excise bond from the government and have entered it in the system. Processing Excise Bonds To access the individual functions shown in the table. the system displays the bond's reservation amount. You must have closed all of the ARE-1s that the bond covers. Function Create an excise bond Change an excise bond Display an excise bond Cancel an excise bond Follow-on menu path → Create → Change → Display → Cancel You can only cancel a bond if you have not yet used it. This reservation amount is for information only. the decision is up to you. choose Indirect Taxes → Master Data → Excise Bond. from the SAP Easy Access screen. you specify which bond the ARE-1 is covered by. you might want to use a different bond. But since the reservation amount is for information only. Activities When you create a new ARE-1 in the system. In the system. if another one is available.India Page 170 of 224 Use The system records the total amount of excise duty from ARE-1s that you have created (but not yet posted) under a given bond. In the excise invoice. when you create an ARE-1. you have already created the delivery and the outgoing excise invoice. Process Flow The excise clerk creates an ARE-1.

he closes the ARE-1. the customs officer checks whether the excise invoice and the ARE1 match the goods. Creating ARE-1s Use You create an ARE-1 when you want to export goods under bond. The shipping department sends the goods to be exported. He fills out Part A of the form (Certification by the Central Excise Office). he updates the ARE-1 in the system. One of the copies is in a sealed envelope. the date when the ARE-1 arrived back at your company). The process is now complete. The clerk sends the ARE-1 in the sealed envelope to the excise department. for example. backdated to the date when you removed the goods from your premises. they no longer qualify for exemption from excise duty. The excise officer cross-checks this copy of the ARE-1 with his own copy.India Page 171 of 224 The excise officer comes and checks that the goods match what is on the ARE-1. If the customs officer noted a shortfall in the quantity of goods. Procedure file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. When he is satisfied that everything is correct. When the excise clerk receives the confirmation. When the excise clerk receives the ARE-1. The clerk then posts the ARE-1 and prints out the requisite number of copies. he enters the shortfall in the ARE-1. at the airport or at the port. If he finds that there are fewer goods than stated on the ARE-1. Since the whereabouts of the missing goods cannot be accounted for. he sends the excise clerk a final confirmation. He fills out the various certification dates in the ARE-1 (for example. When the goods arrive at customs. they have to go through the customs office. Your company is therefore liable for the excise duty on the shortfall. plus interest. Before the goods can leave the country. The excise officer signs the ARE-1s and takes one copy with him. He then fills out Part B of the ARE-1 (Certification by the Customs Officer) and sends it back to the excise clerk.htm 10/13/2007 . together with the excise invoice and the ARE1. The clerk specifies which excise registers to pay the excise duty from. the excise clerk enters the shortfall as well.

4. 3. Enter the excise invoice that the ARE-1 is for and choose . This information will be printed on the ARE-1. Select Create ARE-1. Changing ARE-1s Use Once you have created an ARE-1. you can still change the following information until you post it: Which excise bond it is assigned to Which excise invoices are assigned to it Which addresses are entered Any long texts Any package details Procedure 1. b. repeat step (c) for each of them. see Long Texts. In the top line: a. choose Indirect Taxes → Sales/Outbound Movements → Exports file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Save the ARE-1. 5. enter any relevant information about how the goods are packaged. see Automatic Address Determination. c. 2. 7. For more information.htm 10/13/2007 . maintain any long texts required in the ARE-1. If you need to. enter the addresses of your local excise department and the customs department that will process the ARE-1. From the SAP Easy Access screen. For more information. On the Package Details tab. If the ARE-1 is to cover more than one excise invoice. 6. On the Additional Data tab. Their addresses will be printed on the ARE-1. Assign an excise bond to the ARE-1. you can still cancel the ARE-1. From the SAP Easy Access screen.India Page 172 of 224 1. On the Addresses tab. This information will also be printed on the ARE-1. d. Select Outgoing Excise Invoice. Result The system: Creates the ARE-1 and assigns it an internal ARE-1 number (see ARE Document Numbering) Increases the bond's reservation amount Sets the document status to In Process The next step you have to carry out in the system is to post the ARE-1. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports → Central Processing → Create ARE-1.

If you want to see which other ARE-1s the bond is already assigned to. c. you must specify which bond covers it. Enter the internal ARE-1 number and choose 3. choose . Procedure 1. In the top line: a. Select ARE-1 Internal Document. In the top line: a. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports → Central Processing → Post ARE-1. From the SAP Easy Access screen. Select Post. 2.htm 10/13/2007 . 4.India Page 173 of 224 Under Excise Regulations → Exports → Central Processing → Change ARE-1. c. Save the ARE-1. Posting ARE-1s Use When you have created an ARE-1 and the excise officer has confirmed that all the details are correct. Select ARE-1 Internal Document. Choose . Change data as required. Assigning Excise Bonds to ARE-1s Use When you create an ARE-1. Prerequisites You have obtained an excise bond from the excise department and you have entered in the system. . On the Bond/UT-1 Detail tab. 2. b. You can still make any changes that you need to before you post it. Enter the internal ARE-1 number and fiscal year and choose . enter the number of the excise bond that you want to cover the ARE-1 and the year in which it was issued. Select Change. b. You can change the bond until such time as you post the ARE-1. 3. you can post the ARE-1. Procedure 1. The system displays the bond details. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 2.

he records them on the ARE-1. In the top line: a. the system credits the excise duty back to the running bond. Select ARE-1 Internal Document. You must now send the ARE-1 to your local excise department. one in a sealed envelope. 4. Select Update. the next step is to update it. Result The system: Assigns the ARE-1 an official ARE-1 number (see ARE Document Numbering) Clears the excise duty from the bond's reservation amount and debits it to the bond (see Bond Balance) You can no longer change the ARE-1.htm 10/13/2007 . if need be. b. He also fills out Part B of the ARE-1 (Certification by the Customs Officer) and sends you three copies of the ARE-1. Enter any shortfalls that the customs officer has noted on the ARE-1. From the SAP Easy Access screen. 3. If there are any discrepancies in the quantity of the goods. Result If the bond is a running bond and you have activated the fast credit function. Procedure 1. 2. On the Certification Dates tab. enter the date and time that the goods are being dispatched. However. 5. Enter the internal ARE-1 number and choose . Save the ARE-1. you can still reverse it. the customs officer checks them against the excise invoice and the ARE-1. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports → Central Processing → Update ARE-1. Save the ARE-1. fill out the following dates as per the ARE-1: Arrived at Customs Countersigned by Customs Arrived Back 4.India Page 174 of 224 3. c. Otherwise. you update the dates in the ARE-1 in the system to match what the customs officer has written on the ARE-1. Updating ARE-1s Use When the goods arrive at customs. On the Certification Dates tab. When you receive the ARE-1.

that you want to pay the excise duty and interest from Register RG 23A and the PLA): Credits this excise duty back to the bond (see Bond Balance) Reversing ARE-1s Use When you have posted an ARE-1. Choose the line item that you want to adjust. 4. On the Utilization tab. You must therefore pay the excise duty on the shortfall. In the detail data. on the Quantities tab.India Page 175 of 224 Entering Shortfalls in ARE-1s Use If. By reversing an ARE-1. you can reverse it if necessary until such time as customs has countersigned it. backdated to the date when you removed the goods from your premises. register RG 23C. Result When you save the ARE-1. the customs officer finds that the quantities of the goods are lower than you have stated on the excise invoice and the ARE-1. you forego the exemption from paying the excise duty that was due on the materials file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 . Since the whereabouts of the missing goods cannot be accounted for. 2. he amends the quantity on the ARE-1. . It calculates the interest due and displays it on the Utilization tab in the Interest Amount field. and choose The system displays the shortfall in the Differential Qty field. plus interest. the system: Generates a Part II entry in the registers that you have specified (see Excise Registers) Creates an accounting document to debit the excise duty to the CENVAT reversal account and credit it to the appropriate register accounts as follows (assuming. You must then enter the shortfall in the ARE-1. for example. or your PLA. for any reason. 3. enter the amended quantity. they no longer qualify for exemption from excise duty. specify whether you want to pay the excise duty from register RG 23A. On the Document Details tab. enter the reason for the shortfall in the Reason Code field. Procedure 1.

You can divide the amount payable between the different registers as you wish. Select Reverse ARE-1. that you want to pay the excise duty and interest from Register RG 23A and the PLA): Credits this amount of excise duty back to the bond (see Bond Balance) You can no longer change the ARE-1. In the top line: a.htm 10/13/2007 . In the top line: file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. From the SAP Easy Access screen. Enter the internal ARE-1 number and choose . 3. 2. you send it to the excise department so that they can cross-check it against their original ARE-1. for example. On the Utilization tab. Procedure 1. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports → Central Processing → Update ARE-1. Sending ARE-1s to Excise Departments Use Once the customs officer has returned the ARE-1 to you. 4. Result The system: Generates a Part II entry in the registers that you have specified (see Excise Registers) Creates an accounting document to debit the excise duty to the CENVAT reversal account and credit it to the appropriate register accounts as follows (assuming. b. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports → Central Processing → Reverse ARE-1.India Page 176 of 224 when you removed them from your premises. From the SAP Easy Access screen. 5. specify which excise registers you want to pay the excise duty and the interest from. c. enter the reason for reversing the ARE-1. Procedure 1. Consequently. On the Document Details tab. Select ARE-1 Internal Document. Save the ARE-1. you must pay the excise duty plus interest (see Interest Calculation). 2.

Result The next step is to close the ARE-1. From the SAP Easy Access screen. the system also credits the excise duty back to the bond. fill out the Export Confirmed field. fill out the Sent to Excise Dept field. It shows the following details for a single running bond: Its opening balance All of the ARE-1s that it has covered The duty debited from it when you posted the ARE-1s and the duty credited back to it once you closed the ARE-1s The bond's current balance file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 3.htm 10/13/2007 . Select Update ARE-1. Enter the internal ARE-1 number and choose . b. In the top line: a. Pro Forma of Running Bond Account Use You use this report to prepare the statutory pro forma of running bond account. 4. Select ARE-1 Internal Document. The ARE-1 is now complete. b. Enter the internal ARE-1 number and choose . c. Procedure 1. Select Update ARE-1. to be submitted monthly. 3. you record the date in the system. if it has not already done so (see Bond Balance). Select ARE-1 Internal Document. Result If the bond is a running bond. 4. On the Certification Dates tab. On the Certification Dates tab. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports → Central Processing → Update ARE-1. c. Save the ARE-1.India Page 177 of 224 a. 2. Closing ARE-1s Use When the excise department sends you confirmation that the ARE-1 is correct. This closes the ARE-1. Save the ARE-1.

Statement Regarding Export of Excisable Goods Use You use this report to prepare the statutory statement regarding export of excisable goods. The report prints out the complete statement in a format acceptable to the excise departments. The list shows the basic information about each excise bond. Features To access the report. to be submitted at least once a month to your local excise department. specify which parts of the statement you want to prepare as follows: Part I II Shows All stock removals without payment of duty All removals from previous quarters for which you have not yet received a confirmation of receipt from the customs office All stock removals that will exceed the export period by the end of the month All removals that you have reversed A list of your bonds with their balances III IV V Bond Summary Report Use You use this report to prepare a list of all your excise bonds. from the SAP Easy Access screen. and you can drill down to see which ARE-1s the bond has been assigned to. Features To access the report. from the SAP Easy Access screen. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.India Page 178 of 224 To access the report. Selection Fill out the selection screen with the data for the bonds that you want to display.htm 10/13/2007 . choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Reports → Bond Summary. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Reports → Pro Forma of Running Bond Account. Selection On the selection screen. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Reports → Statement Regarding Export of Excisable Goods. from the SAP Easy Access screen.

Exports Under Claim for Rebate Use If you have not obtained an excise bond. There is an ad-hoc report that you can use for tracking ARE-1s. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. including an ARE-1 document. To see which ARE-1s a bond has covered. you have set the excise invoice type to Export Under Claim for Rebate. under Tax on Goods Movements → India → Business Transactions → Exports Under Excise Regulations → Exports and … → Printouts of ARE-Documents. He then calls the local excise department and asks them to send an excise officer to check the goods. following the process described under ARE-1 Processing. you can claim a rebate for the excise duty once you have completed the export if you fill out an ARE-1 to go with the export. you must pay any excise duty liable when removing goods from your premises for export. Activities Customizing Carry out the IMG activities in Customizing for Logistics – General. and you must complete the export within the export period. To process and track these documents.India Page 179 of 224 Output The system displays a list of the bonds that meet the selection criteria. all exports must be accompanied by the appropriate paperwork.htm 10/13/2007 . He fills out Part A of the form (Certification by the Central Excise Office). Day-to-Day Activities In order to qualify for a rebate on the excise duty. The excise officer comes and checks that the goods match what is on the ARE-1. However. The clerk then posts the ARE-1 and prints out the requisite number of copies. ARE-1 Processing Purpose This procedure describes how you process ARE-1s for exports under claim for rebate. choose . In the excise invoice. In the system. Aging Analysis for ARE Documents. Prerequisites You have received a sales order from a customer located abroad. Process Flow The excise clerk creates an ARE-1. you have already created the delivery and the outgoing excise invoice. use the ARE Documents functions.

2.htm 10/13/2007 . Select Create ARE-1. The excise officer cross-checks this copy of the ARE-1 with his own copy. he updates the ARE-1 in the system. If the customs officer noted a shortfall in the quantity of goods. you will not be able to claim back the excise duty on the shortfall. for example. When the goods arrive at customs. Before the goods can leave the country. b. He then fills out Part B of the ARE-1 (Certification by the Customs Officer) and sends it back to the excise clerk. From the SAP Easy Access screen. Select Outgoing Excise Invoice. Enter the excise invoice that the ARE-1 is for and choose . he sends the excise clerk a final confirmation. they have to go through the customs office. he closes the ARE-1. when you come to claim the rebate. together with the excise invoice and the ARE1. When the excise clerk receives the confirmation. When he is satisfied that everything is correct. When the excise clerk receives the ARE-1. He fills out the various certification dates in the ARE-1 (for example. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. at the airport or at the port. the excise clerk enters the shortfall as well. Procedure 1. the customs officer checks whether the excise invoice and the ARE1 match the goods. he enters the shortfall in the ARE-1.India Page 180 of 224 The excise officer signs the ARE-1s and takes one copy with him. Later. If he finds that there are fewer goods than stated on the ARE-1. Creating ARE-1s Use You create an ARE-1 when you want to export goods under claim for rebate. The shipping department sends the goods to be exported. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports → Central Processing → Create ARE-1. the date when the ARE-1 arrived back at your company). The ARE-1 is now complete and you can apply for the rebate on the excise duty that you have paid. In the top line: a. One of the copies is in a sealed envelope. The clerk sends the ARE-1 in the sealed envelope to the excise department. c.

In the top line: a. c. Change data as required. Their addresses will be printed on the ARE-1. On the Package Details tab. If the ARE-1 is to cover more than one excise invoice. 2.India Page 181 of 224 d. 4. This information will also be printed on the ARE-1. Save the ARE-1. This information will be printed on the ARE-1. Result The system: Creates the ARE-1 and assigns it an internal ARE-1 number (see ARE Document Numbering) Sets the document status to In Process The next step you have to carry out in the system is to post the ARE-1. Save the ARE-1. 3. see Long Texts. On the Additional Data tab. repeat step (c) for each of them. 2. see Automatic Address Determination. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports → Central Processing → Change ARE-1. 1. For more information. enter the addresses of your local excise department and the customs department that will process the ARE-1. Enter the internal ARE-1 number and choose 3. you can still change the following information until you post it: Which excise invoices are assigned to it Which addresses are entered Any long texts Any package details Procedure 1.htm 10/13/2007 . On the Addresses tab. . For more information. you can still cancel the ARE-1. b. Select ARE-1 Internal Document. maintain any long texts required in the ARE-1. From the SAP Easy Access screen. Select Change. Changing ARE-1s Use Once you have created an ARE-1. enter any relevant information about how the goods are packaged. 3. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. If you need to.

4. You can no longer change the ARE-1. the next step is to update it. Select Update. Otherwise. the customs officer checks them against the excise invoice and the ARE-1. Enter the internal ARE-1 number and choose . you update the dates in the ARE-1 in the system to match what the customs officer has written on the ARE-1. Enter the internal ARE-1 number and choose . Select ARE-1 Internal Document. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports → Central Processing → Update ARE-1. In the top line: a. you can post the ARE-1. Select Post. If there are any discrepancies in the quantity of the goods. He also fills out Part B of the ARE-1 (Certification by the Customs Officer) and sends you three copies of the ARE-1. Procedure 1. 3.htm 10/13/2007 . 2. Result The system assigns the ARE-1 an official ARE-1 number (see ARE Document Numbering). From the SAP Easy Access screen. In the top line: a. c. However.India Page 182 of 224 Posting ARE-1s Use When you have created an ARE-1 and the excise officer has confirmed that all the details are correct. enter the date and time that the goods are being dispatched. 2. Updating ARE-1s Use When the goods arrive at customs. Procedure 1. You can still make any changes that you need to before you post it. b. you can still reverse it. he records them on the ARE-1. one in a sealed envelope. c. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports → Central Processing → Post ARE-1. When you receive the ARE-1. On the Certification Dates tab. Select ARE-1 Internal Document. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. if need be. From the SAP Easy Access screen. b. Save the ARE-1.

2. Result You must now send the ARE-1 to your local excise department. 5. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. you will not be able to claim back the excise duty on the shortfall. On the Document Details tab.India Page 183 of 224 3. From the SAP Easy Access screen. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports → Central Processing → Reverse ARE-1. the customs officer finds that the quantities of the goods are lower than you have stated on the excise invoice and the ARE-1. Reversing ARE-1s Use When you have posted an ARE-1. Enter any shortfalls that the customs officer has noted on the ARE-1. Select Reverse ARE-1. Select ARE-1 Internal Document. for any reason. 2. Save the ARE-1. . 3. Choose the line item that you want to adjust. on the Quantities tab. you can reverse it if necessary until such time as customs has countersigned it. he amends the quantity on the ARE-1. Entering Shortfalls in ARE-1s Use If. Enter the internal ARE-1 number and choose . In the top line: a. Procedure 1. Later. In the detail data.htm 10/13/2007 . You must then enter the shortfall in the ARE-1. and choose The system displays the shortfall in the Differential Qty field. b. when you come to claim the rebate. On the Certification Dates tab. fill out the following dates as per the ARE-1: Arrived at Customs Countersigned by Customs Arrived Back 4. enter the reason for the shortfall in the Reason Code field. c. Procedure 1. enter the amended quantity.

Select ARE-1 Internal Document. Deemed Exports Use You can ship deemed exports to any customers in possession of a deemed export license without paying any basic excise duty. fill out the Export Confirmed field. under Tax on Goods Movements → India → Business Transactions → Exports Under Excise Regulations → Deemed Exports and … → Printouts of ARE Documents. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports → Central Processing → Update ARE-1. Result The ARE-1 is now complete. Master Data Enter your customers' deemed export licenses in the system. In the top line: a. On the Certification Dates tab. 4. Enter the internal ARE-1 number and choose . Result You can no longer change the ARE-1. From the SAP Easy Access screen. 4. Save the ARE-1. you record the date in the system. but only if the goods are accompanied by an ARE-3 document. b. 3.India Page 184 of 224 3. Save the ARE-1.htm 10/13/2007 . This closes the ARE-1. c. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 2. enter the reason for reversing the ARE-1. On the Document Details tab. Select Update ARE-1. Closing ARE-1s Use When the excise department sends you confirmation that the ARE-1 is correct. Activities Customizing Carry out the IMG activities in Customizing for Logistics – General. Procedure 1.

India Page 185 of 224 Day-to-Day Activities In order to qualify for an exemption from excise duty. you create an ARE-3 to go with the goods shipment. the system numbers each license automatically. You enter your customers' licenses in the system. Ltd. including an ARE-3 document. later on. You can only issue an ARE-3 with reference to a customer's license. It only applies to purchases of specific quantity or value of specific goods from a specific vendor. following the process described under ARE-3 Processing. Deemed Export License Definition A license issued by the excise authorities under which an exporter can procure goods from a manufacturer without payment of basic excise duty. Day-to-Day Activities When you sell a customer some goods that are covered by a license. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. 20 personal computers from Computer World Pvt. When the license balance is exhausted.htm 10/13/2007 . and you must complete the deemed export within the rewarehousing period. use the ARE Documents functions. they send you a copy. you can enter it there as well. The license is not a blanket exemption. the system automatically assigns it an internal license number. To process and track ARE-3s. In the ARE-3. If. When a license is exhausted. all deemed exports must be accompanied by the appropriate paperwork. you specify which license the goods are covered by. License Numbering Use When you create a deemed export license. you close it. The system reduces the license balance accordingly. you can close it. There are two ad-hoc reports that you can use for tracking licenses and ARE-3s: Deemed Export License Summary and Aging Analysis for ARE Documents. The system automatically keeps track of the license balance. for example. a customer gets an extension on the expiry date of the license from the excise authorities. Use Master Data When your customers obtain a deemed export license from the excise authorities. Reporting You can keep track of your customers' licenses using the Excise Bonding License Summary.

If you reverse an ARE-3. you specify which quantification method each uses. you enter the official license number manually. Activities Customizing Define the license types in Customizing for Logistics – General. Master Data When you enter a license in the system. the license balance does not go back up. The license type controls which quantification method applies to the license. Every time you post an ARE-3 against a license. you specify the license type and the quantity or value of the goods covered. and allows you to extend their validity period if required. The system thus keeps track of the license balances for you. the system automatically assigns it an internal license number. The system ensures that you can only use licenses if they are valid.India Page 186 of 224 Each license also has an official license number. Features The excise authorities issue several different license types with different quantification methods. License Validity Use Deemed export licenses are only valid for a limited period of time. Master Data When you enter a license. Activities Customizing Maintain the number range object for the internal license number in Customizing for Logistics – General. by choosing Tax on Goods Movements → India → Business Transactions → Exports Under Excise Regulations → Deemed Exports → Maintain License Types. depending on its quantification method.htm 10/13/2007 . License Balances Use Each deemed export license only covers a limited quantity of goods or goods to a limited value. The license balance decreases accordingly. Day-to-Day Activities When you post an ARE-3. the system automatically debits the value or quantity of the goods stated in the ARE-3 to the license. Activities file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. by choosing Tax on Goods Movements → India → Tools → Number Ranges. When you define the license types in the system (see Customizing below). You can check the license balances at any time in the license master or in the Deemed Export License Summary. When you save the license. the remaining quantity or value decreases automatically.

Process Flow file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. you have set the excise invoice type to Deemed Exports. The system sets the status to Canceled. Close a license → Close Close a license when all of the ARE-3s that it has covered are closed.India Page 187 of 224 Master Data When you enter a license. ARE-3 Processing Purpose This procedure describes how you process ARE-3s for deemed exports. from the SAP Easy Access screen. Change a license → Change Display a license Cancel a license → Display → Cancel You can only cancel a license if you have not yet used it.htm 10/13/2007 . You have received a sales order from the customer for goods covered by this license. You can only change a license if you have not already assigned it to an ARE-3. Function Create a license Follow-on menu path → Create What you should know The system assigns the license an internal license number and sets the license status to Active. In the excise invoice. Processing Deemed Export Licenses To access the individual functions shown in the table. The system sets the status to Closed. In the system. If a license expires and the excise authorities grant your customer an extension on the validity period. Note that this field only appears once the license expires. Otherwise. Prerequisites Your customer has supplied you with a copy of its deemed export license and you have entered the license in the system. choose Indirect Taxes → Master Data → Deemed Export License. enter the extension date in the license master. you have already created the delivery and the outgoing excise invoice. you enter the validity period as stated on the original document. you close the license. Day-to-Day Activities The system will not allow you to assign an invalid license to an ARE-3.

he updates the ARE-3 in the system. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Deemed Exports → Central Processing → Create ARE-3. From the SAP Easy Access screen. when he is ready. repeat step (c) for each of them. Creating ARE-3s Use You create an ARE-3 when you want to send a customer a deemed export. Assign the deemed export license to the ARE-3. If he finds that there are fewer goods than stated on the ARE-3. posts it. If the warehouseman noted a shortfall in the quantity of goods. He also prints out the ARE-3 and encloses a copy with the delivery. enter the address of your local excise department. b. 3. backdated to the date when you removed the goods from your premises. the date when the ARE-3 arrived back at your company). If the ARE-3 is to cover more than one excise invoice. they no longer qualify for exemption from basic excise duty. 4. The clerk specifies which excise registers to pay the excise duty from. Enter the excise invoice that the ARE-3 is for and choose . The shipping department sends the goods to the customer. the excise clerk enters the shortfall as well. plus interest. together with the excise invoice and the ARE-3. c. The process is now complete. When the excise clerk receives the ARE-3. He then fills out Part 2 of the ARE-3 (Certificate of Warehousing by the Consignee) and sends it back to the excise clerk. he checks whether the excise invoice and the ARE-3 match the goods. You must therefore pay the excise duty on the shortfall. he enters the shortfall in the ARE-3. d. He fills out the various certification dates in the ARE-3 (for example. When the customer's warehouseman receives the goods.India Page 188 of 224 The export clerk creates an ARE-3 and. 2.htm 10/13/2007 . On the Addresses tab. Procedure 1. In the top line: a. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Select Create ARE-3 Select Outgoing Excise Invoice. Since the whereabouts of the missing goods cannot be accounted for.

Procedure file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. On the Package Details tab. Assigning Deemed Export Licenses to Line Items Use When you create an ARE-3. Save the ARE-3. Enter the internal ARE-3 number and choose 3. Change data as required. assign the line items the deemed export license that covers them. maintain any long texts required in the ARE-3. This information will also be printed on the ARE-3. Select ARE-3 Internal Document. For more information. you can still change the following information until you post it: Which export licenses are assigned to the line items Which excise invoices are assigned to it Which addresses are entered Any long texts Any package details Procedure 1. This information will be printed on the ARE-3. 6. Changing ARE-3s Use Once you have created an ARE-3. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Deemed Exports → Central Processing → Change ARE-3. On the Additional Data tab. 2. 4. see Long Texts. In the top line: a. 7. enter any relevant information about how the goods are packaged. Save the ARE-3. c. Select Change. For more information. 5. . see Automatic Address Determination.India Page 189 of 224 Its address will be printed on the ARE-3. Result The system creates the ARE-3 and assigns it an internal ARE-3 number (see ARE Document Numbering). From the SAP Easy Access screen. b.htm 10/13/2007 .

On the Certification Dates tab. On the License tab in the detail data. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Deemed Exports → Central Processing → Update ARE-3. 4. Select Post. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Deemed Exports → Central Processing → Post ARE-3. Enter the internal ARE-3 number and choose . Procedure 1. 3.India Page 190 of 224 1. you update the ARE-3 in the system to match what the customer has written on the ARE-3. From the SAP Easy Access screen. Updating ARE-3s Use When the goods arrive at the customer’s premises. However. Result The system: Assigns the ARE-3 an official ARE-3 number (see ARE Document Numbering) Deducts the quantity or value of the goods from the license (see License Balances) You can no longer change the ARE-3. enter the time that the date and time that the goods are being dispatched. The customer also fills out Part 2 of the ARE-3 (Certification of Warehousing by the Consignee) and sends you a copy. In the item overview. In the top line: file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. the next step is to update it. From the SAP Easy Access screen. enter the internal license number and year. 2. 2. if need be. 2. In the top line: a.htm 10/13/2007 . When you receive the ARE-3. You can still make any changes that you need to before you post it. If there are any shortfalls in the quantity of the goods he records them on the ARE-3. Otherwise. the customer checks them against the excise invoice and the ARE-3. you can still reverse it. Select ARE-3 Internal Document. Procedure 1. Save the document. select the line item that you want to assign the export license to. b. c. Posting ARE-3s Use When you have created an ARE-3 and you are ready to ship the goods. you can post and print the ARE-3.

backdated to the date when you removed the goods from your premises. 3. Select ARE-3 Internal Document. Procedure 1. Enter any shortfalls that the customer has noted on the ARE-3. Enter the internal ARE-3 number and choose 3. and choose The system displays the shortfall in the Differential Qty field. enter the reason for the quantity change in the Reason Code field. You must therefore pay the excise duty on the shortfall. Choose the line item that you want to adjust. On the Document Details tab. Enter the Countersigned by Customer date as per the ARE-3. enter the amended quantity.India Page 191 of 224 a. for example. 2. In the detail data. they no longer qualify for exemption from excise duty.htm 10/13/2007 . or your PLA. 4. On the Certification Dates tab: . that you want to pay the excise duty and interest from Register RG 23A and the PLA): file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. specify whether you want to pay the excise duty from register RG 23A. on the Quantities tab. Save the ARE-3. Select Update. for any reason. Enter the Arrived Back date. c. Since the whereabouts of the missing goods cannot be accounted for. he enters the shortfall on the ARE-3. the system: Generates a Part II entry in the registers that you have specified (see Excise Registers) Creates an accounting document to debit the excise duty to the CENVAT reversal account and credit it to the appropriate register accounts as follows (assuming. Result When you save the ARE-3. 5. b. register RG 23C. plus interest. . Entering Shortfalls in ARE-3s Use If. Result The ARE-3 is now complete. You must then enter the shortfall in the ARE3. 4. On the Utilization tab. your customer finds that the quantities of the goods are lower than you have stated on the excise invoice and the ARE-3. It calculates the interest due and displays it on the Utilization tab in the Interest Amount field.

On the Document Details tab. c. Procedure 1. Enter the internal ARE-3 number and choose . you must pay the excise duty plus interest (see Interest Calculation). 5. Select Reverse ARE-3. Result The system: Generates a Part II entry in the registers that you have specified (see Excise Registers) Creates an accounting document to debit the excise duty to the CENVAT reversal account and credit it to the appropriate register accounts as follows (assuming. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Deemed Exports → Central Processing → Reverse ARE-3. On the Utilization tab. specify which excise registers you want to pay the excise duty and the interest from. Select ARE-3 Internal Document. Consequently. 4. enter the reason for reversing the ARE-3. By reversing an ARE-3. 2.htm 10/13/2007 . You can divide the amount payable between the different registers as you wish.India Page 192 of 224 Reversing ARE-3s Use When you have posted an ARE-3. you forego the exemption from paying the excise duty that was due on the materials when you removed them from your premises. for example. From the SAP Easy Access screen. 3. Save the document. that you want to pay the excise duty and the interest from Register RG 23A and the PLA): Does not reinstate the value or quantity of the goods to the license file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. b. In the top line: a. you can reverse it if necessary until such time as you enter the rewarehousing date.

ARE Documents Use This function is for use by excise clerks and excise supervisors. and Deemed Exports. from the SAP Easy Access screen. from the SAP Easy Access screen. select Display ARE-3s Referred To. and the license balance. Exports Under Claim for Rebate. so that they can create and process ARE-1s and ARE-3s used to execute exports and deemed exports. are also shown in the transaction. Deemed Export License Summary Use You use this report to prepare a summary of the deemed export licenses that you have entered in your system. Output For each license. If the list shows an ARE-3 without an official ARE-3 number. If you want to see which ARE-3s the licenses have been used for. It is thus integrated with Financial Accounting (FI). The following documentation describes the functions common to all types of exports under excise regulations. that means that the ARE-3 has only been created and not yet posted. Features To access the report. For information about the individual procedures involved. To access the ARE Documents function. For more information about the different transactions available. see Exports Under Bond. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → …. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.India Page 193 of 224 You can no longer change the ARE-3. Any entries that the system makes in relation to an ARE document. Integration This function allows you to create ARE documents using outgoing excise invoices as a reference document. the materials covered by the license. which in turn you create on the basis of deliveries. the list shows the header data. If you selected Display ARE-3s Referred To. There are several different transactions under this menu path. the list also shows the ARE-3s assigned to each license. in Part II of the excise registers RG 23 A and C. As such it is integrated with Sales and Distribution (SD) and Materials Management (MM).htm 10/13/2007 . see Transaction Configuration. choose Indirect Taxes → Sales/Outbound Movements → Excise Bonding → Reports → Deemed Export License Summary. Selection Enter selection criteria as required.

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Features
The screen consists of the following areas:

Top Line
This is where you specify what document you want to process. When you create an ARE document, you specify the reference document in this area. When you process an ARE document that you have already created, you enter the ARE document number.

Header Data
This area consists of four tabs, each with information that relates to the whole of the excise document. Tab Document Details Use Basic header data, such as the internal and official ARE numbers and the document status. Total amounts of basic excise duty in the ARE document and any changes made by customs (ARE-1s) or the customer (ARE-3s) Various dates used to track the progress of the ARE document. In exports under bond, shows which bond the export is covered by. This tab is only shown for exports under bond. Excise Invoice Summary The excise invoices that the ARE document covers.

Total Duties

Certification Dates Bond/UT-1 Detail

file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm

10/13/2007

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Addresses

Shows the addresses of the local excise department and the customs office that is handling the ARE document. Fields for any additional information that you might want to enter, including various long texts to be printed on the ARE document. Any entries in Part II of the excise registers RG 23A, RG 23C, or PLA made as a result of your updating the quantities in the ARE document. Note that this tab is not displayed if there are no Part II entries.

Additional Data

Part II

Item Overview
This area lists all of the items in the excise invoice. To process an item, you click the item number and process it in the detail data , but you process the items in the detail data area.

Detail Data
This area consists of seven tabs, each with information about a particular item. Tab Item Quantities Use Basic information about the material itself. Information the quantity of goods in the excise invoice, and how much of this quantity have entries in Parts I and II of the excise registers. The rates of excise duty on the item. The excise duty on the item, and how much of it has already been credited to the CENVAT accounts. The license that this item is covered by (deemed exports only). Any information about the packages that needs to be printed on the ARE document. The other SAP documents associated with the item.

Duty Rates Duty Values

License Package Details Reference Documents Additional Data

Fields for any additional information that you might want to enter, this time at item level.

Transaction Configuration
Use
You can execute the ARE Documents function using different transaction codes. Each transaction code controls how users can process ARE documents and which reference documents they can use.

Features
The standard system comes with one central processing transaction and three individual processing transactions for each type of ARE document: • The central processing transactions allow users to carry out all functions on the ARE document and are suited to a system administrator, for example.

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The individual processing transactions restrict the users to specific processing modes only (for example, creating and displaying ARE documents, or updating and displaying ARE documents).

You can assign these transactions to excise clerks or supervisors.
For a list of the transaction codes provided, see Transaction Codes.

Activities
Customizing
If the delivered settings do not meet your requirements, you can change them in Customizing for Logistics – General, by choosing Tax on Goods Movements → India → Business Transactions → Exports Under Excise Regulations → Transaction Configuration.

ARE Document Numbering
Use
In the system, each ARE document has two numbers: an internal number, which is the number that the system uses to identify the ARE document, and an official number, which corresponds to the serial numbers assigned to you by the excise department for the ARE document forms.

Activities
Customizing
To activate internal numbering, maintain the number range object J_1IINTNUM in Customizing for Logistics – General, by choosing Tax on Goods Movements → India → Tools → Number Ranges. To activate official numbering, maintain the number range object J_1IARE1 for ARE-1s, and J_1IARE3 for ARE3s. Create a separate number range for each series group.

Day-to-Day Activities
When you create an ARE document, the system automatically assigns it an internal document number. The system only assigns the ARE document an official number when you post it. Both numbers are displayed on the Doc. Details tab. You cannot change either of the numbers manually.

Automatic Address Determination
Use
When you print ARE documents, they must show the address of your local excise department and the customs department that will be handling the export.

Activities
Customizing
Enter the name and address of every excise department and customs department that you have dealings with in Customizing for Logistics – General, by choosing Tax on Goods Movements → India → Master Data → Maintain Postal Addresses. Define a default local excise department address for each series group, in Customizing for Logistics – General, by choosing Tax on Goods Movements → India → Master Data → Maintain Series Groups.

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Day-to-Day Activities
When you create an ARE document, the system automatically enters the address of the local excise department that you have assigned to the series group. The address data is shown on the Addresses tab. You can change it if you want to.

Long Texts
Use
The forms that ARE-1s and ARE-3s are printed on contain spaces for various pieces of information, for example, the mode of transport or the export seal number. When you create an ARE document, you can enter this information using the long text function and it will be printed at the appropriate positions.

Activities
Customizing
Country Version India comes with long texts already customized to go with the ARE-1 and ARE-3 forms. However, if you need to, you can define other long texts in Customizing for Logistics – General, by choosing Tax on Goods Movements → India → Tools → Long Texts.

Day-to-Day Activities
When you create an ARE document and you want to enter a long text for it, on the Additional Data tab, choose Long Text. In the dialog box, double-click the sort of long text that you want to enter, and type the text in the field next to it. When you print out the document, the texts appear at the appropriate positions.

Printouts of ARE Documents
Use
You can print out ARE-1s or ARE-3s on blank A4 paper. The system prints out the entire form with the details filled in from the ARE that you have created. Since multiple copies are required of each ARE document, the system automatically prints out the number of copies needed.

Features
Country Version India comes with all the settings you need to print out ARE-1s and ARE-3s in the appropriate format. Two SAPscript forms are provided, one for ARE-1s and one for ARE-3s. These forms use the same printing program and output type. The output type is J1IB.

Activities
Customizing

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by choosing Tax on Goods Movements → India → Business Transactions → Excise Bonding → Exports Under Excise Regulations → Make Settings for ARE-1 Procedure and … → Deemed Exports → Make Settings for ARE-3 Procedure. Then. when you save the ARE. select Print ARE Document on the Document Details tab. you must repay the excise duty that you posted to the CENVAT account for the goods. you can apply to the excise department for an extension. choose . by choosing Tax on Goods Movements → India → Business Transactions → Exports Under Excise Regulations → Exports. To do so. otherwise you no longer qualify for the exemption on the basic excise duty. Day-to-Day Activities If an ARE-1 or ARE-3 reaches the end of the period without being closed. Similarly. Exports under claim for rebate must also be completed within this time or you will not be able to reclaim the duty. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. by choosing Tax on Goods Movements → India → Business Transactions → Exports Under Excise Regulations → Deemed Exports. If not. enter the extension date in the ARE document (see Extending Export Periods and Rewarehousing Periods). The system keeps track of these periods for you automatically. the system prints out the number of copies that you have specified. Assign the output type to the ARE-1s and ARE-3s. deemed exports must also be completed within the allotted rewarehousing period. In the same activities. Day-to-Day Activities There are two ways of printing a document. Export Periods and Rewarehousing Periods Use Exports under bond must be completed within the export period defined by the excise authorities. When you display an ARE. as follows: When you post an ARE. Note that this function is only available in display mode.htm 10/13/2007 . in Customizing for Logistics – General. by choosing Tax on Goods Movements → India → Business Transactions → Excise Bonding → Exports Under Excise Regulations → Printouts of ARE Documents. specify how many copies of each ARE document you want the system to print.India Page 198 of 224 Check the output type settings provided in Customizing for Logistics – General. If the extension is granted. Activities Customizing Enter the export period in Customizing for Logistics – General. Enter the rewarehousing period in Customizing for Logistics – General.

file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. you also have to pay interest on that amount. Procedure 1. 2. fill out the Extended Until field. c. Result Once you have entered the extension date. b. you can continue processing the ARE document as normal. Enter the internal ARE document number and choose . The applicable interest rates are announced by the excise authorities. It is also due when a customs officer updates the quantity of goods on the ARE-1. backdated to the date on which you removed the goods from your premises. This field only appears once an ARE document exceeds the export period or rewarehousing period. you can enter the new date in the document. Select Update. Extending Export Periods and Rewarehousing Periods Use If you have not closed an ARE document within the prescribed export period or rewarehousing period and you have obtained an extension from the excise department. You can track which AREs are coming to the end of their export or rewarehousing periods using the Aging Analysis for ARE Documents. Save the document. Features Interest is due whenever you reverse an ARE document (for example. or a customer updates the quantity of goods on an ARE-3. when an ARE-1 exceeds the export period and the excise authorities do not grant you an extension). The system calculates the amount of interest due automatically. Select ARE-1 Internal Document or ARE-3 Internal Document.htm 10/13/2007 . On the Certification Dates tab. In the top line: a. From the SAP Easy Access screen. 4.India Page 199 of 224 reverse the ARE-1 or reverse the ARE-3. 3. Interest Calculation Use Whenever you have to pay the excise duty originally exempted by an ARE document. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports or Deemed Exports → Central Processing → Update ARE-1 or Update ARE-3.

Procedure 1. Adding Excise Invoices to AREs Use If you have already created an ARE document. enter the excise invoice number and year in the Additional Excise Invoices field. On the Excise Invoice Summary tab. 2. by choosing Tax on Goods Movements → India → Business Transactions → Exports Under Excise Regulations → Exports → Make Settings for ARE-1 Procedure and … → Deemed Exports → Make Settings for ARE-3 Procedure. you can still add additional excises to it until such time as you post it. Canceling AREs Use file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Procedure 1.India Page 200 of 224 Activities Customizing Maintain the interest rates in Customizing for Logistics – General. Removing Excise Invoices from AREs Use If you have assigned an excise invoice to an ARE document and you wish to remove it. 2. Choose . you can do so until such time as you have posted it. Day-to-Day Activities The system automatically calculates interest when: You enter shortfalls in ARE-1s or enter shortfalls in ARE-3s You reverse an ARE-1 or reverse an ARE-3 You can overwrite the excise duty and interest that the system proposes. On the Excise Invoice Summary tab. Choose . enter the excise invoice number and year in the Additional Excise Invoices field.htm 10/13/2007 .

Select Cancel. The period can refer to the next so many days. Selection 1. It allows you to see which documents need to be processed within a certain amount of time. from the SAP Easy Access screen. Transaction Codes file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. you can cancel it if you need to. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Exports or Deemed Exports → Central Processing → Cancel ARE-1 or Cancel ARE-3.htm 10/13/2007 . or the past so many days. Procedure 1. Choose . In the Documents field.India Page 201 of 224 If you have already created an ARE document but not yet posted it. Aging Analysis for ARE Documents Use You use this report to prepare a list of all ARE documents by their status. Save the document. which ARE-1s are approaching the end of their export period and need to be extended. Then either enter a date range or enter a period. Output Each document is assigned a status as follows: : Activity is overdue : Activity is due today : Activity has been completed The list is formatted using the SAP List Viewer: see this documentation for more information about navigating and formatting options within the list. for example. depending on what status you have selected. Features To access the report. b. In the top line: a. 2. From the SAP Easy Access screen. b. Select ARE-1 Internal Document or ARE-3 Internal Document. choose Indirect Taxes → Sales/Outbound Movements → Exports Under Excise Regulations → Reports → Aging Analysis for ARE Documents. c. 2. enter the status of the documents that you want to see. 3. Enter the internal ARE number and choose . Enter data as follows: a.

display ARE-1 Create. change. display ARE-1 Update. cancel. cancel. update. display ARE-1 Create.htm 10/13/2007 . change. update. display ARE-1 Cancel. display ARE-3 Update. display ARE-3 Create.India Page 202 of 224 Transaction J1IA101 J1IA102 J1IA103 J1IA104 J1IA301 J1IA302 J1IA303 J1IA304 J1IBN01 J1IBN02 J1IBN03 J1IBN04 J1IBN05 J1ILIC01 J1ILIC02 J1ILIC03 J1ILIC04 J1ILIC05 J1IANX18 J1IANX19 J1IARE_AGE J1IBONSUM J1ILICSUM Function Create. change. You can record the forms that your file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. display ARE-3 Cancel. change. display ARE-3 Create bond Change bond Display bond Cancel bond Close bond Create license Change license Display license Cancel license Close license Pro Forma of Running Bond Account Statement Regarding Export of Excisable Goods Aging Analysis for ARE Documents Bond Summary Report License Summary Report Form Tracking Use You use this function to record and monitor forms relating to tax concessions.

In many cases. If the buyer is unable to furnish the certificate at the appropriate time. CENVAT Adjustment Postings Use You use these functions if you need to make an adjustment posting to any of your CENVAT accounts. In such cases. such as a material document or a subcontracting challan – or an external document. the buyer has to produce certain statutory forms to claim concessional rates of excise duty or exemptions. the document which the adjustment posting is to refer to – either an internal document. such as an incoming excise invoice. However. on exports or deemed exports. for example. Exemption from excise duty may be granted by the excise authorities under certain circumstances. You can also use these functions for monitoring other routine activities. the adjustment will have to be file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. You can make adjustment postings to account for: Scrap Materials that you have not used in production Additional excise paid by vendors Money that you have transferred to your personal ledger account Other transactions You can also use this function to cancel excise invoices. you specify the reference document. The exporter has to provide the vendor with proof of export (form AR3A). Features Forms for concessional sales tax must be submitted by the buyer after the goods have been delivered or after it has paid the invoice. Features Each of the different types of adjustment postings are documented separately. the concessional rate is granted against the issue of C-forms. You also specify which registers are affected by the posting.htm 10/13/2007 . and those that you send to your vendors against your purchase orders.India Page 203 of 224 customers send you against their sales orders. Activities To access the form tracking function. for example. as follows. Reference Document On the initial screen of the transaction. they all work on the same principle. In the case of interstate concessional sales tax rate sales. from the SAP Easy Access screen. when you transfer money to your personal ledger account (PLA) using a TR6 challan. that is. material supply should be at the normal rate of sales tax or excise duty. choose Indirect Taxes → Forms Tracking → Create/Change/Display.

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remitted to the authorities on a fortnightly basis. The adjustment will then be included when you run the Remittance of Excise Duty Fortnightly report. If the adjustment has to be remitted immediately, you specify which register is affected.

Excise Details
When you proceed to the detail screen, the system automatically shows the line items from the reference document, if it is an internal document. You specify how much excise duty is to be adjusted and which CENVAT accounts the adjustment posting is to be made to. When you edit the excise details, there are a number of functions that are available, depending on the type of adjustment posting: Assigning excise invoice to line items Specifying which G/L accounts are to be adjusted Displaying balances of CENVAT accounts When you save your changes, the system creates an accounting document to make the appropriate postings.

Making Adjustment Postings for Scrap
Use
You follow this procedure if you have scrapped a material and want to reverse the excise duty debited to your CENVAT account.

Procedure
1. From the SAP Easy Access screen, choose Indirect Taxes → Excise JV → Create → Matl write-off. 2. Enter data as required, including: Document number Enter the number of the document that you used to scrap the material. CENVAT account selection group box Specify which account is affected by the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment. 3. Choose .

The system displays the information from the material document. 4. Adjust the posting date as necessary. 5. Adjust the excise duty for each line item either: Manually By assigning the line item to an excise invoice 6. Specify which G/L accounts are to be posted to.

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7. Save the adjustment posting.

Making Adjustment Postings for Materials Not Used in Production
Use
You follow this procedure if you have not used a material in the production process and want to reverse the excise duty debited to your CENVAT account.

Procedure
1. From the SAP Easy Access screen, choose Indirect Taxes → Excise JV → Create → Matl non-prod. 2. Enter data as required, including: Document number Enter the number of the material document that the adjustment posting is to refer to. CENVAT account selection group box Specify which account is affected by the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment. 3. Choose .

The system displays the information from the material document. 4. Adjust the posting date as necessary. 5. Adjust the excise duty for each line item either: Manually By assigning the line item to an excise invoice 6. Specify which G/L accounts are to be posted to. 7. Save the adjustment posting.

Making Adjustment Postings for Additional Excise Paid by Vendors
Use
You follow this procedure if a vendor has increased the amount of excise duty that it originally charged you and you want to debit the difference to your CENVAT account.

Procedure
1. From the SAP Easy Access screen, choose Indirect Taxes → Excise JV → Create → Additional excise.

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2. Enter data as required. In the Document number field, enter then number of the document sent to you by the vendor. 3. Choose . 4. Adjust the posting date as necessary. 5. Enter the amount of excise duty in either of the following ways: To enter line items for different materials and the excise duty accordingly, choose and enter the line items in the table. To enter the excise duty only, choose and enter the excise duty in the totals fields at the foot of the screen. 6. If the duty qualifies as countervailing duty (CVD): a. Select CVD applicable. b. Enter the CVD amount in the BED amount field. 7. Specify which G/L accounts are to be posted to. 8. Save the adjustment posting.

Making Adjustment Postings for Money Transferred to PLA
Use
You follow this procedure to make an adjustment posting when you transfer money to your personal ledger account (PLA).

Prerequisites
You have already transferred the money to your PLA at the bank, using a TR6 challan, and have posted the corresponding accounting document.

Procedure
1. From the SAP Easy Access screen, choose Indirect Taxes → Excise JV → Create → TR6 challan. 2. Enter data as required, including the document number. You can enter either the challan number or the number of the accounting document. 3. Choose .

If you entered the accounting document number, the system displays the information from it. 4. Enter the amounts against the accounts that you require. 5. Save the adjustment posting.

Making Adjustment Postings for Other Transactions

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Use
You follow this procedure if you want to make an adjustment posting that does not fall into any of the other categories of adjustment offered by this function. You can only use an external document as your reference document.

Procedure
1. From the SAP Easy Access screen, choose Indirect Taxes → Excise JV → Create → Other adj. 2. Enter data as required, including: Document number Enter the number of the external document that you want to refer to. CENVAT account selection group box Specify which account is affected by the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment. 3. Choose .

The system displays the information from the material document. 4. Adjust the posting date as necessary. 5. Enter the amount of excise duty in either of the following ways: To enter line items for different materials and the excise duty accordingly, choose and enter the line items in the table. To enter the excise duty only, choose and enter the excise duty in the totals fields at the foot of the screen. 6. Specify which G/L accounts are to be posted to. 7. Save the adjustment posting.

Assigning Excise Invoices to Line Items
Use
When you make an adjustment posting, you follow this procedure if you want to specify the original excise invoice associated with a line item.

Procedure
1. Select the line item that you want and choose Get excise invoice. The system displays a list of all the excise invoices that you have posted from this vendor for this particular material. 2. Select the excise invoice that you want and choose .

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Prerequisites You have specified whether you want the users to be able to add extra debit accounts (see below). 2. To close the dialog box. 3. If you then overwrite these amounts.htm 10/13/2007 . You have three excise invoices from the same vendor to choose from. 4. choose . Treasury and Risk Management – India (TRM) file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Procedure 1. if necessary. Displaying CENVAT Account Balances To display the balances of your CENVAT accounts. Add another account. doc. you should also overwrite the reference document number with an explanatory text. Choose Determine G/L accounts. The accounts that are displayed depend on the excise group and the CENVAT account that you entered on the selection screen. The system automatically apportions INR 100 to the line item that is to be reversed. field (Reference document). if you need to. and adjust the other postings so that the credits and debits match. You pick one for 20 plates of glass with BED at INR 200.India Page 208 of 224 The system: Enters the excise invoice document number in the Ref. in Customizing for Logistics – General. A dialog box appears that shows how much will be posted to which G/L accounts. you have to specify which CENVAT accounts are to be adjusted. choose Balances. You have a line item with ten plates of glass that you have broken and are to be scrapped. since there is no point in maintaining the link to the reference document anymore. The system displays the balances only of the CENVAT accounts that are affected by your G/L postings. Enter a business area and cost center. by choosing Taxes on Goods Movements → India → Basic Settings → Maintain Company Codes. Specifying Which CENVAT Accounts to Adjust Use When you make an adjustment posting. Calculates how much of the excise duty from the excise invoice should be apportioned to the line item and enters it in the excise duty fields.

see Overview. Integration Prerequisite for the TRM withholding tax customizing is a complete extended withholding tax customizing in Financial Accounting. securities accounts.htm 10/13/2007 . In SAP ECC you use the Treasury and Risk Management solution to withhold this tax automatically. Features Customizing You must carry out the Customizing settings for extended withholding tax. You can assign flows only to certain product types. For more information. The TRM withholding tax function for India is available for product types: Money market Securities The performance of one of these functions has as result that the tax transaction is part of TRM transactions. securities account groups or portfolios. In addition you must carry out the settings as described in Customizing.India Page 209 of 224 Purpose In India. the new tax rate is considered for the withholding tax calculation. The system automatically calculates withholding tax for India when you save the transaction. you are required to calculate and post withholding tax during the borrowings operations in TRM. Business Transactions You record money market and securities transactions following the standard procedure. You carry out the customizing actions to generate withholding tax in TRM with the maintenance view TRXV_WT_ASSIGN. You can use this view to control for which flows withholding tax is calculated and posted. The specific functions for India are integrated into the Financial Accounting process and calculate the withholding tax before posting the tax to the corresponding customer account. In the case of a tax rate change. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. For more information about the Customizing settings in FI see Extended Withholding Tax. financial transaction types. business partners.

the system recalculates withholding tax. which should generate a withholding tax flow. we recommend that you read the F1 Help of the fields of this maintenance view. Calculating Withholding Tax and Posting in TRM Purpose You can use this process to execute withholding tax calculation with the standard procedure and by posting the tax relevant flows to customer for the corresponding business partner. the system recalculates withholding tax. the system automatically calculates withholding tax.India Page 210 of 224 If. During settlement. Since it is very important to correctly maintain this table. You create this withholding tax flow with a flow type maintained in the Update Type column. Business Transactions Use You record money market and securities transactions following the standard procedure. Reporting You can prepare your report and print it: you use for this the cash flow reporting program. you carry out the Customizing activities that relate to functions used only in India.htm 10/13/2007 . Settings You must maintain every update type in the Update Type Tax Base column of the maintenance view. Additionally. when you save this transaction. The calculation and posting of withholding tax in TRM is possible for product types Money Market (using the transaction for creating fixed-term deposit) and Securities (using the transaction for creating security transactions). Prerequisites file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. for example. Constraints This component is not used for areas: • • CML (Loans) Micro-hedging for recording the underlyings for foreign exchange (forex) contracts Customizing Implementation Consideration To customize Treasury and Risk Management for use in India you carry out the generic Customizing activities for withholding tax using the information provided in the following. the interest rate has changed during settlement. In addition.

choose for Money Market → Accounting → Financial Supply Chain Management → Treasury and Risk Management → Transaction Manager → Money Market → Accounting → Accrual/Deferral. both fields can be maintained in the box “Position indicator” of a transaction. Withholding Tax Calculation in Contracts Use If you want to perform a withholding tax calculation and post it in Treasury and Risk Management you post tax-relevant flows. Only then the system calculates and posts the withholding tax. For every item in this table the withholding tax type and the withholding tax code have to be defined. reporting. Result You have calculated the withholding tax and saved it in the database. Result The withholding tax flow is now calculated. On the SAP Easy Access screen. The integration to Financial Accounting guarantees that the values of these fields are also transferred to FI and are then part of the FI accounting document. Example The mapping of registration data. To access this transaction on the SAP Easy Access screen choose Create fixed-term deposit → Environment → Posting Indicator.India Page 211 of 224 The withholding tax calculation is dependent on the withholding tax type and the withholding tax code which are defined in the Financial Accounting Global Settings. Procedure In the contract you define the flow types for which withholding tax must be calculated and posted. you can enter data for both fields in the Position Indicator of a transaction. you use the corresponding transaction. choose Environment → Posting Indicator. instead: Accounting → Financial Supply Chain Management → Treasury and Risk file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Choose for Securities. To calculate withholding tax in TRM. the flow types for which withholding tax should be calculated and posted must be defined in the customizing table TRXV_WT_ASSIGN. Contract Processing Use The business place and section code fields are used for the withholding tax process in India. In TRM. On the SAP Easy Access screen. To perform these functions. Maintain the fields “Business Place” and “Section Code” in a contract.htm 10/13/2007 . In TRM. customized under topic Extended Withholding Tax. payment and due dates are based on these fields. posted and is part of the TRM transaction. You assign a contract to a customer using the Control Data indicator on the Payment details tab page in the contract. The operator posts the tax-relevant flows involving the customer account for the corresponding business partner. Calculating Withholding Tax on Interest Accruals Use This function enables you to define the posting on accruals and deferrals of expenses and revenues in Treasury.

htm 10/13/2007 . and allocates revenue and expenditure items to the proper account periods. in the Update Type Tax Base column of the Customizing view.India Page 212 of 224 Management → Transaction Manager → Securities → Accounting → Interest Accrual/Deferral. Prerequisites To generate a withholding tax flow for an accrual. To generate withholding tax for a brokerage flow. The program finds the corresponding posting details for each flow in account determination.. Features The report performs following activities: 1. Calculating Withholding Tax Calculation for Brokerage Amounts Use If withholding tax is raised on brokerage you can create brokerage flows on tab page Other flows of the transaction for brokerage amounts. For more information about processing of interest accruals. if required. This program performs the following functions: Calculates the amount to be accrued or deferred for the flows concerned Creates the corresponding accrual or deferral flows Posts the items immediately in financial accounting. it is necessary to maintain the accrual update type in the corresponding Customizing table. For the TRM India withholding tax function only the difference procedure is possible as an accrual/deferral procedure. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. This is possible with transaction Settle Fixed-Term Deposit and Program Treasury: Post Flows. you must maintain the brokerage update type. see Accrual/Deferral. Example You can use the following update type: SE3001: Brokerage capitalized Treasury: Post Flows Use You use this report to check and control the postings and transferring transactions you have carried out. Posting and Transferring of Flows Use You use this function to generate documents to Financial Accounting in Treasury. Features This program makes accruals or deferrals of expenses and revenues resulting from Treasury deals.

see Creating Activity Groups ("activity group" is the old term for "role"). The document is prepared and transferred to Financial Accounting. 3. transferred to Financial Accounting. India Localization Technical name: SAP_CIN Tasks This role covers all of the tasks associated with Country Version India (CIN). transferred to Financial Accounting. and posted in a single FI document. 4. Roles The following documents describe the roles delivered with Country Version India (CIN). without Financial Accounting to be updated. and posted in a single FI document. including Customizing. For more information about roles in general. Excise Manager (Materials Management) Technical name: SAP_CIN_MM_MANAGER Tasks This role covers all administrative tasks in Country Version India (CIN) that relate to excise duty in the areas of file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. The calculated withholding tax amounts or flows are processed. Activities You can use the test run to check whether these steps can be carried out correctly.htm 10/13/2007 . and reporting. This is the role that all the menu paths given in this documentation are based on. After a test run and during a productive run instead. CIN Customizing and Master Data Maintenance Technical name: SAP_CIN_SUPER_USER Tasks This role covers all the Customizing activities relating to Country Version India (CIN). in all applications. It also covers the maintenance of excise master data. The list output displays the selected transactions with the withholding taxes calculated. the withholding tax information is stored in the contract. day-to-day operations.India Page 213 of 224 2.

this role allows you to: Capture.htm 10/13/2007 . change. and cancel incoming excise invoices Capture excise invoices at depots Execute all activities relating to subcontracting challans file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. all day-to-day operations. It includes all day-to-day operations and reporting. the Excise Manager is authorized to: Work with the CIN Implementation Guide (IMG) Use the health check tool Define number ranges for excise invoices Maintain excise master data Make retrospective price amendments In your day-to-day operations. display. Activities in Materials Management (MM) In Customizing and master data. It includes Customizing activities. post. this role allows you to: Capture. the Excise Supervisor is authorized to: Define number ranges for excise invoices Maintain excise master data Make retrospective price amendments In your day-to-day operations. display. and reporting. and cancel incoming excise invoices Capture excise invoices at depots Complete subcontracting challans and perform quantity reconciliation Post excise invoice journal vouchers Track forms Activities in Financial Accounting (FI) The Excise Manager can: Create the excise registers Transfer outstanding CENVAT credit on capital goods to the appropriate CENVAT accounts Excise Supervisor (Materials Management) Technical name: SAP_CIN_MM_SUPERVISOR Tasks This role covers most of the tasks in Country Version India (CIN) that relate to excise duty in the areas of procurement and subcontracting. but only one Customizing activity.India Page 214 of 224 procurement and subcontracting. Activities in Materials Management (MM) In Customizing and master data. change. post.

India Page 215 of 224 Post excise invoice journal vouchers Track forms Activities in Financial Accounting (FI) The Excise Supervisor can: Create the excise registers Transfer outstanding CENVAT credit on capital goods to the appropriate CENVAT accounts Excise Clerk (Materials Management) Technical name: SAP_CIN_MM_CLERK Tasks This role covers the tasks relating to capturing incoming excise invoices. this role allows you to: Create and verify outgoing excise invoices for other movements Create excise invoices in batches Post excise journal vouchers Print excise invoices file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Activities in Sales and Distribution (SD) In Customizing and master data. day-to-day operations. Activities in Materials Management (MM) The Excise Clerk can: Capture excise invoices (of all types) Track forms Excise Manager (Sales and Distribution) Technical name: SAP_CIN_SD_MANAGER Tasks This role covers the administrative tasks in Country Version India (CIN) that relate to excise duty in the area of sales. the Excise Manager is authorized to: Work with the CIN Implementation Guide (IMG) Use the health check tool Maintain excise master data Make retrospective price amendments In your day-to-day operations. and reporting.htm 10/13/2007 . It includes all Customizing activities.

It includes the maintenance of master data. and reporting.htm 10/13/2007 . include Customizing. this role also allows you to: Remit excise duty using the fortnightly utilization program Print 57AE returns Excise Supervisor (Sales and Distribution) Technical name: SAP_CIN_SD_SUPERVISOR Tasks This role covers the tasks in Country Version India (CIN) that relate to excise duty in the sales area. day-to-day operations. It does not. Activities in Sales and Distribution (SD) The Excise Clerk can: Create excise invoices for other movements file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. however. this role also allows you to: Remit excise duty using the fortnightly utilization program Print 57AE returns Excise Clerk (Sales and Distribution) Technical name: SAP_CIN_SD_CLERK Tasks This role covers the tasks relating to the creation of excise invoices. the Excise Supervisor is authorized to: Maintain excise master data Make retrospective price amendments In your day-to-day operations. Activities in Sales and Distribution (SD) In master data.India Page 216 of 224 Track forms In reporting. this role allows you to: Create and verify outgoing excise invoices for other movements Create excise invoices in batches Post excise journal vouchers Print excise invoices Track forms In reporting.

change. day-to-day operations. display. and reporting. update. Activities in Materials Management (MM) The Bonding Clerk can: Create. change. and display subcontracting challans. Bonding Clerk Technical name: SAP_CIN_BONDING_CLERK Tasks This role covers all tasks relating to exports under excise regulations. display. It includes all Customizing activities. and cancel excise bonds and deemed export licenses Create. you can: Carry out all the activities relating to the remittance of tax withholdings Make adjustment postings file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Activities in Financial Accounting (FI) In Customizing. change.htm 10/13/2007 .India Page 217 of 224 Print excise invoices Track forms Subcontracting Clerk Technical name: SAP_CIN_SUBCONTRACTING_CLERK Tasks The Subcontracting Clerk is authorized to create. the TDS Manager is authorized to: Work with the CIN Implementation Guide (IMG) Use the health check tool In day-to-day operations. and cancel ARE documents Execute all the associated reports TDS Manager Technical name: SAP_CIN_TDS_MANAGER Tasks This role covers all the activities in Country Version India (CIN) that relate to tax deducted at source (TDS).

the TDS Supervisor can: Carry out all the activities relating to the remittance of tax withholdings Make adjustment postings Print and cancel TDS certificates for vendors Post and clear withholding tax on clearing accounts (extended withholding tax only) Print TDS certificates for customers In reporting.htm 10/13/2007 .India Page 218 of 224 Print and cancel TDS certificates for vendors Post and clear withholding tax on clearing accounts (Extended Withholding Tax only) Print TDS certificates for customers In reporting. but not Customizing. you can: Prepare annual returns for TDS (Classic TDS and Extended Withholding Tax) Prepare MIS report (Extended Withholding Tax) Archive TDS documents TDS Clerk Technical name: SAP_CIN_TDS_CLERK Tasks This role covers the day-to-day operations relating to tax deducted at source (TDS). It includes all day-to-day operations and reporting. Activities in Financial Accounting (FI) The TDS Clerk can: Carry out all the activities relating to the remittance of tax withholdings (Classic TDS and extended withholding tax) Post and clear withholding tax on clearing accounts (extended withholding tax only) file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. the TDS Manager can: Prepare annual returns for TDS (Classic TDS and Extended Withholding Tax) Prepare MIS report (Extended Withholding Tax) TDS Supervisor Technical name: SAP_CIN_TDS_SUPERVISOR Tasks This role covers the administrative activities in Country Version India (CIN) that relate to tax deducted at source (TDS). Activities in Financial Accounting (FI) In day-to-day operations.

Archiving of Country Version India related data may lead to an inconsistency in the system. ● The data archiving tool for Country Version India archives the following tables: Country Version India Archiving Tables Table Name J_1IEXCHDR J_1IEXCDTL J_1IGRXREF J_1IPART1 J_1IPART2 J_1IRG23D J_1IRGSUM J_1IRG1 J_2IEXTRCT J_2IEXDATE J_2IREGBAL J_2IRG1BAL J_2IACCBAL Description Excise invoice header detail Excise invoice line item details Goods Receipt to Excise Invoice Cross Reference Excise Part I details Excise Part II details RG23D register for the depot RG23 Summary of receipts and issues Excise RG1 details Extract table Extract table Balance table Balance table Balance table file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Reads and displays the data in the info catalogs ● The data archiving tool archives all the Country Version India data for the excise group for a period. Features • The data archiving tool for Country Version India: Writes the data to be archived into info catalogs. Implementation Considerations You must archive the standard tables before archiving the Country Version India tables.htm 10/13/2007 . Deletes the data from the active database. if the standard tables are not archived. see Overview of the Archiving Workbench. For generic information on data archiving. Data Archiving Purpose This component archives the data in tables pertaining to Country Version India.India Page 219 of 224 Register Maintenance Clerk Technical name: SAP_CIN_REGISTER_CLERK Tasks This role covers all the activities relating to the preparation of excise and sales tax registers.

Each archiving object archives data in certain table(s). Structure The sequence in which you have to call the archiving objects is: J_1I_EXDC This archiving object archives the following tables: J_1IEXCHDR J_1IEXCDTL J_1IPART2 J_1IGRXSUB file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 . Use You have to call the archiving objects in a particular sequence.India Page 220 of 224 ● The data archiving tool for Country Version India consists of the following archiving objects: J_1I_EXDC Archiving object for the excise document data and transaction data relevant to the excise documents J_1I_P1GRX Archiving object for Part1 registers and corresponding entries from J_1IGRXREF table J_1I_RG23D Archiving object for the RG23D register for the depot J_1I_RG1 Archiving object for the finished goods J_1I_EXBL Archiving object for the Extract and Balance tables Archiving Objects Definition The archiving objects write the data to be archived into the info catalogs and deletes the data from the active database.

htm 10/13/2007 .India Page 221 of 224 The selection criteria for this archiving object are: ○ Excise Group ○ Year J_1I_RG1 This archiving object archives the following tables: J_1IRG1 The selection criteria for this archiving object are: ○ Excise Group ○ Serial Year J_1I_P1GRX This archiving object archives the following tables: J_1IPART1 J_1IGRXREF The selection criteria for this archiving object are: ○ Excise Group ○ Register Type ○ Serial Year J_1I_RG23D This archiving object archives the following tables: ○ J_1IRG23D The selection criteria for this archiving object are: ○ Excise Group ○ Document Year J_1IEXBL This archiving object archives the following tables: file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.

htm 10/13/2007 . Select the Variant that you have maintained. Enter the archiving object name. file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. execute the following steps: Execute transaction SARA. Deleting the data from the active database.India Page 222 of 224 ○ J_2IEXTRCT ○ J_2IEXDATE ○ J_2IREGBAL ○ J_2IRG1BAL ○ J_2IACCBAL The selection criterion for this archiving object is: ○ Excise Group Archiving the Data Use This procedure lists down the steps required for: • • Writing the data into the info catalogs. The system schedules a new archiving job. Select the Job Overview icon to get the overview of scheduled archiving jobs. Maintain the Spool Parameters. Procedure To write the data into the info catalogs. Select the Write option. Maintain the Variant for the archiving object. Select the Execute icon . Maintain the Start Date.

Select the file(s) to be deleted. execute the following steps: Execute transaction SARA. Enter the archiving object name. Select the Job Overview icon Execute transaction SARI .India Page 223 of 224 To delete the archived data from the active database. Select the archiving structure and the corresponding info catalog. Select the Delete option. Result The system writes the data into the info catalogs and deletes the data from the active database. Check the data that is archived. Select the Execute icon . Maintain the Spool Parameters. Select the Archive Selection option The Archive Administration: Select Files for Delete Program dialog box appears. Transaction Codes for India Transaction J1I2 J1I3 J1I5 J1IEX Action Prepare a sales tax register Create outgoing excise invoices in batches Update the RG 1 and Part I registers Incoming Excise Invoices (central transaction) file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE. Select the Execute icon . to get the overview of scheduled archiving jobs. Maintain the Start Date.htm 10/13/2007 .

or recredit a subcontracting challan Reconcile quantities for subcontracting challans List subcontracting challans Make a CENVAT adjustment posting Create an outgoing excise invoice Assign excise invoices to a delivery for sales from depots Adjust withholding tax Item Reprint a withholding tax certificate for a vendor Year-End Income Tax Depreciation Report Download register data Process an excise invoice (outgoing) for other movements Process exemption forms Verify and post an incoming excise invoice Create an incoming excise invoice (without reference to purchase order) Transfer excise duty to CENVAT account Remit excise duty fortnightly Monthly CENVAT return Excise invoice entry at depot Create additional excise entry at depot Extract data for excise registers Print excise registers file://D:\Documents and Settings\breath\Local Settings\Temp\~hh1AEE.htm 10/13/2007 . reverse.India Page 224 of 224 J1IEX_C J1IEX_P J1IF01 J1IF11 J1IF12 J1IF13 J1IFQ J1IFR J1IH J1IIN J1IJ J1INJV J1INREP J1IQ J1IR J1IS J1IU J1IW J1IX J2I8 J2IU J2I9 J1IG J1IGA J2I5 J2I6 Capture an incoming excise invoice (excise clerk) Post an incoming excise invoice (excise supervisor) Create a subcontracting challan Change a subcontracting challan Display a subcontracting challan Complete.

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