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CIN USER MANUAL FOR MM

COUNTRY INDIA VERSION

USER MANUAL

MATERIAL MANAGEMENT

TABLE OF CONTENTS 1. THE COUNTRY INDIA VERSION 1.1 EXCISE REGISTRATION 1.2 EXCISE GROUP 1.3 SERIES GROUP 2. ESSENTIAL MASTER DATA FOR EXCISE 2.1 CHAPER-ID 2.2 MATERIAL CHAPTER ID COMBINATION 2.3 MATERIAL ASSESSABLE VALUE 2.4 CENVAT DETERMINATION 2.5 VENDOR EXCISE DETAILS 3. TAX CONDITION RECORDS 3.1 CENVATABLE EXCISE DUTY CONDITIONS (%) 3.2 CENVATABLE EXCISE DUTY CONDITIONS (QTY) 3.3 NON-CENVATABLE EXCISE DUTY CONDITIONS (%) 3.4 NON-CENVATABLE EXCISE DUTY CONDITIONS (QTY) 3.5 VAT CONDITIONS 3.6 CST CONDITIONS 3.7 SERVICE TAX CONDITIONS NON-INVENTORISED 3.8 SERVICE TAX CONDITIONS INVENTORISED 3.9 TAX CONDITIONS TO BE MAINTAINED 4. PROCEDURE FOR CLAIMING CENVAT FOR RAW MATERIALS 4.1 CREATE THE PURCHASE ORDER 4.2 GOODS RECEIPT 4.2.1 OPTION 1: CAPTURE EXCISE INVOICE AT GOODS RECEIPT 4.2.2 OPTION 2: CAPTURE EXCISE INVOICE SEPERATELY 4.3 TO CHECK THE STATUS OF ALL EXCISE INVOICE CAPTURED. 4.4 POST EXCISE INVOICE 5. PROCEDURE FOR CLAIMING CENVAT FOR CAPITAL GOODS 6. PROCEDURE FOR CLAIMING DUTIES FOR IMPORTED GOODS 7. PROCEDURE FOR CLAIMING CENVAT FOR RAW MATERIAL WITHOUT MATERIAL ID 8. CLAIMING CUSTOMS DUTIES PURCHASED FROM DEALER (WHO HAS IMPORTED THE MATERIAL. 9. PROCEDURE FOR INVENTORISING CUSTOM DUTIES PURCHSASED FOR A DEPOT.

10. PROCEDURE FOR CENVAT REVERSALS. 10.1 RETURN DELIVERY MOVEMENT 122 10.2 CANCELLATION OF MATERIAL DOCUMENTS. 10.3 PURCHASE ORDER RETURNS 10.4 CENVAT ADJUSTMENT POSTINGS J1H EXCISE POSTINGS. 10.4.1 MAKING ADJUSTMENT POSTINGS FOR SCRAP 10.4.2 MAKING ADJUSTMENT POSTINGS FOR MATERIALS NOT USED IN PRODUCTION 10.4.3 MAKING ADJUSTMENT POSTINGS FOR ADDITIONAL EXCISE PAID TO VENDORS 10.4.4 MAKING ADJUSTMENT POSTINGS FOR MONEY TRANSFERRED TO PLA. 10.4.5 CANCELLING EXCISE INVOICES 10.4.6 MAKING ADJUSTMENT POSTINGS FOR OTHER TRANSACTIONS. 11. SUBCONTRACT CHALLAN. 11.1 NORMAL SUBCONTRACT PROCESS 11.2 SUBCONTRACT PROCESS WHERE SCRAP IS RECEIVED FROM VENDOR 11.3 SUBCONTRACT PROCESS: RETURN DELIVERY TO VENDOR 11.4 SUBCONTRACT PROCESS: CANCELLATION OF GOODS RECEIPT 11.5 SUBCONTRACTING OVER CONSUMPTION OR UNDER CONSUMPTION 11.6 CHALLAN COMPLETED 180 DAYS REVERSE AND RECREDIT THE CHALLAN 12. FREQUENTLY ASKED QUESTIONS

1. THE COUNTRY INDIA VERSION. CIN facilitates handling of tax implications during the Purchase and Sales cycles. The country version is designed for use by Business 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 to customize they system according to local requirements. Most of the country-specific functions for India relate to Financials and Logistics. The main areas are as follows: EXCISE DUTY AND CENTRAL VALUE ADDED TAX SYSTEM (CENVAT) WITHHOLDING TAX (ALSO KNOWN AS TAX DEDUCTED AT SOURCE) SALES TAX MAINTAINENCE AND PRINTING OF STATUTORY EXCISE REGISTERS.

1.1 EXCISE REGISTRATION: Each entity is assigned its own Excise Registration Number. Every Factory that manufactures Excisable goods is required to register separately.

1.2 EXCISE GROUP: This is a unit within an excise registration, in India which keeps its own set of excise records. Whereas the excise registration reports to the excise authorities, the excise group is a purely internal organizational unit. Each Excise group keeps records of all transactions that have to be reported to the excise authorities. When the time comes to present these records to the authorities, the excise registration compiles the information from all of its excise groups. Excise Group determines Excise Register Number Range. All Excise Reports (RT-12, PLA,RG23A Part I and Part II, RG23 Part I and Part II) will be generated based on this Excise Group. 1.3 SERIES GROUP: Series Group determines number range for outgoing excise Invoice/ challan (57 AC5 challan etc)

2. ESSENTIAL MASTER DATA FOR EXCISE: Excise Master Material Chapter Id Combination Material Assessable Value CENVAT Determination Vendor Excise Details

2.1 Chapter-ID Select Chapter Id GOTO New Entries and enter Chapter ID and description. 2.2 Material Chapter ID combination Select Material Chapter ID combination box and press Icon
Select Material and Chapter ID

Enter Material, Plant and Chapter iD combination in the respective tabs. GOTO New Entries and Enter the details. If the material can be sent outside for subcontracting purpose then put a tick in the check box. In the Material type tab select appropriate material type. If it is a input material then select the tab raw material. If it is a capital item then select Assets. If it is a in-house produced material select RG1. Select GR-X ref to specify whether credit is allowed only for single goods receipt or multiple goods receipt with single credit or multiple goods receipt with multiple credits. In the declared column enter X if the material is declared to excise. Also enter the date of declaration, 2.3 Material Assessable Value: In this section we enter the assessable value of the material which is used for the purpose to determine how much excise you can credit to cenvat account when creating subcontracting challan and vendor returns.

Enter the combination plant, material number, valid from currency and assessable value.
SELECT MATERIAL ASSESSABLE VALUE

GOTO New Entries and enter the details 2.4 CENVAT Determination In this section you have to enter the input and output relationship of the material with combination of plant, default indicator for modvat. Companies are required to file with the excise authorities, a list containing the excisable Finished Goods Manufactured and the excisable Input Material required for such production to avail Modvat. It is possible that an input material can be used to manufacture more than one Finished Product. However, if such a material is mainly used, for the manufacture of a particular Finished Product then the input material is identified to be default material. The default indicator is marked for such material.
SELECT CENVAT DETERMINATION

GOTO New entries and enter the details. 2.5 Vendor Excise Details In this section the Vendor Excise details are maintained. The Vendor number, His excise registration details, ECC number, Excise range, excise division, Excise Commisionerate, CST No, LST No, Permanent Account Number, Excise indicator for vendor, SSI Status if he is a SSI vendor, Type of vendor and cenvat ( this is applicable for SSI vendor only who has participated in the CENVAT scheme.
SELECT VENDOR EXCISE DETAILS

GOTO New Entries and enter the details.

3. TAX CONDITION RECORDS Tax Conditions to be used: 3.1 Cenvatable Excise Duties Conditions (% age) Condition Type JMOP JECS JSEC JAOP Description IN BED Setoff % IN ECS Inventory% IN S&HECESS inventory % IN AED Setoff % Set off condition type JMX1 JEX1 JHX1 JAX1 Set off condition description IN A/P BED Setoff IN A/P ECS Setoff IN A/P S&HECESS Setoff IN A/P AED Setoff

3.2 Cenvatable Excise Duties Conditions (Qty) Condition Type JMOQ JEOQ JSHO JAOQ Description IN BED Setoff Qty IN ECS Setoff Qty IN S&HECESS Setoff Qty IN AED Setoff Qty Set off condition type JMX1 JEX1 JHX1 JAX1 Set off condition description IN A/P BED Setoff IN A/P ECS Setoff IN A/P S&HECESS Setoff IN A/P AED Setoff

3.3 Non Cenvatable Excise Duties Conditions (% age) Condition Type JMIP JECO JSEO JAIP Description IN BED Setoff % IN ECS Inventory% IN S&HECESS inventory % IN AED Setoff % Set off condition type JMX2 JEX2 JHX2 JAX2 Set off condition description IN A/P BED Setoff IN A/P ECS Setoff IN A/P S&HECESS Setoff IN A/P AED Setoff

3.4 Non Cenvatable Excise Duties Conditions (Qty) Condition Type JMIQ JECQ JSHQ JAIQ Description IN BED Setoff Qty IN ECS Setoff Qty IN S&HECESS Setoff Qty IN AED Setoff Qty Set off condition type JMX2 JEX2 JHX2 JAX2 Set off condition description IN A/P BED Setoff IN A/P ECS Setoff IN A/P S&HECESS Setoff IN A/P AED Setoff

3.5 VAT Conditions Deductible Condition Type JVRD JVCD Description A/P VAT RM deductible A/P VAT CG deductible Non Deductible condition type JVRN JEX2 Description A/P VAT RM non deductible A/P VAT CG non deductible