Materials Management User Manual

Country India (Taxes)

TABLE of CONTENTS
COUNTRY INDIA VERSION......................................................................................................................ii Excise Master...............................................................................................................................................ii Material Chapter ID combination............................................................................................................ii Material Assessable value......................................................................................................................iii CENVAT Determination........................................................................................................................iii Vendor Excise details.............................................................................................................................iv Excise tax rate.........................................................................................................................................iv Exceptional material excise rate..............................................................................................................v Procedure for Claiming CENVAT for Raw Materials..............................................................................vii Create the Purchase Order.....................................................................................................................vii Goods Receipt to Unrestricted (Movement type: 101)..........................................................................vii Capture the Vendor’s Excise Invoice.....................................................................................................ix Post the Vendors Excise Invoice..........................................................................................................xiii Display Excise Invoice..........................................................................................................................xv Procedure for claiming CENVAT For Capital Items..............................................................................xvii Create the Purchase Order for Capital goods......................................................................................xvii Goods Receipt to Unrestricted (Movement type: 101)........................................................................xvii Capture the Vendor’s Excise Invoice...................................................................................................xix Post the Vendors Excise Invoice........................................................................................................xxiii Display Excise Invoice........................................................................................................................xxv Subcontracting without payment of excise duty.....................................................................................xxvi Create Subcontracting Purchase order................................................................................................xxvi Create transfer Posting of materials sent out for sub-contracting with reference to Subcontractor PO. xxviii Create Subcontracting challan............................................................................................................xxxi Post goods receipt (MIGO)...............................................................................................................xxxiv Reconcile Subcontracting challan......................................................................................................xxxv List of subcontracting challans .......................................................................................................xxxvii Complete/Reverse/Recredit Subcontracting challan......................................................................xxxviii Change Subcontracting challan........................................................................................................xxxix Display Subcontracting challan........................................................................................................xxxix Subcontracting with payment of excise duty........................................................................................xxxix Create subcontracting order for conversion charges..............................................................................xl Providing input material to subcontractor from outside vendor.............................................................xl Providing input material to subcontractor from Rallis manufacturing unit............................................xl Create an outgoing excise invoice for the materials. ............................................................................xli Confirming finished goods stock at Subcontractor’s premises............................................................xlii Material requirement of depot on subcontractor.................................................................................xliii Despatch of material from subcontractor to depot..............................................................................xliv Goods receipt at Depot.......................................................................................................................xlvii Procedure for claiming CVD benefit for imported material...................................................................xlvii Create Purchase order for imports......................................................................................................xlvii Entering invoices for Bill of Entry...........................................................................................................l Capturing Excise invoice (Bill of Entry)...............................................................................................liii Post goods receipt (MIGO).....................................................................................................................lv Post Excise Invoice (Bill of Entry).........................................................................................................lv Creation of Excise Registers.....................................................................................................................lvii Updation of Registers (RG1)................................................................................................................lvii Receipt updation of Registers (RG1)..............................................................................................lviii

Issues updation of RG1 register for captive consumption..............................................................lxii Data extraction..................................................................................................................................lxviii Register printout...................................................................................................................................lxx

MM CIN user-manual Page i of 75 .

If the material can be sent outside for subcontracting purpose then put a tick in the check box Page ii of 75 .MM CIN user-manual COUNTRY INDIA VERSION Excise Master Menu path : India Localisation  Indirect Taxes  Excise Rate maintenance (J1ID) Material Chapter ID combination Select material chapter ID combination box and then press icon. Enter material. plant and chapter ID combination in the respective tabs.

material number. However. valid from . Page iii of 75 . It is possible that an input material may be used in the production of more than one finished product. If it is a inhouse produced material then 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. to avail Modvat. currency . 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. Enter the combination plant. If it is a input material then select the tab Raw material If it is capital item then select Assets. Material Assessable value In this section we enter the assessable value of material which is used for the purpose to determine how much excise you can credit to CENVAT account when creating a subcontracting challan. In the declared column enter X if the material is declared to excise Also enter the date of declaration. a list containing the excisable finished products manufactured and the excisable input materials required for such production. Companies are required to file with the Excise authorities. The default indicator is marked for such material.MM CIN user-manual In the material type tab select appropriate material type. Assessable value. if such a material is mainly used for the manufacture of a particular finished product then the input material is identified to be the default material.

manufacturer. or First stage dealer.e. The vendor number. his excise registration details. Excise ind for vendor. Excise tax rate In this section you maintain the combination of chapter ID and final indicator (combination of plant and vendor indicator). Excise Commissionerate. Excise Range. In the vendor excise details appropriate excise indicator should be selected from the drop down menu of tab In the type of vendor you have to select appropriate tab i. CST no. Excise Division. Importer. Page iv of 75 . SSI status (if he is a SSI vendor).MM CIN user-manual Vendor Excise details In this section the vendor excise details are maintained. Permanent account number. Type of vendor and CENVAT (This is applicable for SSI vendor only who has participated in the CENVAT scheme). valid to date and percentage of excise duty This indicator and chapter ID combination determines the excise duty for the material. ECC no. etc. LST no. valid from date .

per no/per litre etc. In the above case the combination of material and vendor is mentioned for a plant.MM CIN user-manual Exceptional material excise rate In this section you maintain such materials which are having different excise duty rates or having excise rate on basis of unit of measurement i. The excise rate mentioned is Rs per unit (Litre) Page v of 75 .e.

MM CIN user-manual Page vi of 75 .

Vendors Delivery Challan Number b. Known (MIGO) a. Page vii of 75 . Enter the PO number.select Only Part I on this tab and check the Excise group.MM CIN user-manual Procedure for Claiming CENVAT for Raw Materials Create the Purchase Order Follow standard PO creation process Goods Receipt to Unrestricted (Movement type: 101) Menu Path: Logistics  Materials Management  Inventory management Goods movement  goods receipt  for purchase order Purchase order no. Press Enter – at this point of time system will copy all the relevant information from PO and a Excise Invoice tab will appear in the Header screen as shown below .

Here check the stock type in which material is going to receive.MM CIN user-manual c. Enter receiving Storage Location in Where tab. If some text needs to be added regarding the goods receipt enter it in Text field. Enter the Received Quantity in the Quantity tab in field Quantity in Unit of entry. d. Page viii of 75 .

Check the Excise Details related to the received material in Excise Item tab in Detail Data screen as shown below.system will generate the Goods receipt Document.MM CIN user-manual e. Check the Item OK check box and press Check entries button in tool bar to check the g. f. Capture the Vendor’s Excise Invoice Go to CIN transaction Menu Path: User menu  Indirect taxes  Procurement  Excise invoice  Incoming Excise invoice  Individual Processing  Capture/Display Page ix of 75 . System will Automatically update the Part I register as soon as the GR is made. Press Post button to save the Goods receipt .

Page x of 75 . Press Enter. following screen will appear d. Enter Vendor Excise Invoice Number . c.MM CIN user-manual a. If Excise Invoice is faulty and still want to take the credit for the excise invoice. If material had directly came from different vendor.Excise Invoice Date . Enter vendor code in Ship from field in Miscellaneous tab. e. f. b. Select Capture Excise Invoice and Goods Receipt in windows above the Header. Enter Goods Receipt Document number generated in STEP 2.Excise group – A1 onwards (or any other appropriate excise group). enter the rejection code .

Check the Duty rate in Duty rate tab. Check the Material Chapter Heading. Material type in Item tab in Detail Data screen.MM CIN user-manual g. Check the Quantity in Quantity tab i. h. Page xi of 75 .

i. h. Check the Part I entries which are created immediately after the GR in Part I tab.MM CIN user-manual j. k. Tick the Item OK check box and Press button to check the entries. Check duty values and Tax amount for the material in Duty value tab. Page xii of 75 . Excise Invoice will be captured and following screen for information will be displayed. Press save button to post the entry.

b. Enter Vendor Excise Invoice which is captured in previous Step and press Enter. following screen will appear with all the details captured from the Vendor ‘s Excise Invoice. Select Post and Vendor Excise Invoice in windows above the Header.MM CIN user-manual Post the Vendors Excise Invoice Menu Path: User menu  Indirect taxes  Procurement  Excise invoice  Incoming Excise invoice  Individual Processing  Change/Display/Post/Cancel a. Page xiii of 75 .

Press the Post bottom . Check the details and simulate to check the postings using Simulate button . this post the Part II entry .Following screen will appear. Check the postings d.MM CIN user-manual c. following screen will appear Page xiv of 75 .

Here you can display both the Part I and Part II entries in one document only. • Page xv of 75 .MM CIN user-manual Display Excise Invoice • • Menu Path: User menu  Indirect taxes  Procurement  Excise invoice  Incoming Excise invoice  Individual Processing  Change/Display/Post/Cancel Select Display and Vendor Excise Invoice in windows above the Header . Check the Excise registers in which entry is made.

MM CIN user-manual Page xvi of 75 .

Put the asset number in the account assignment tab.MM CIN user-manual Procedure for claiming Capital Items Create the Purchase Order for Capital goods CENVAT For Follow standard PO creation process and note the following things In the Account assignment category enter “A”. Enter the PO number. Save the purchase order. All the other details are as per the procedure of standard purchase order. Vendors Delivery Challan Number Page xvii of 75 . Goods Receipt to Unrestricted (Movement type: 101) Menu Path: Logistics  Materials Management  Inventory management Goods movement  goods receipt  for purchase order Purchase order no. The system will prompt to put the asset number in the account assignment tab. Known (MIGO) a.

If some text needs to be added regarding the goods receipt enter it in Text field. As described above in procedure for claiming modvat for raw material. Press Enter – at this point of time system will copy all the relevant information from PO and a Excise Invoice tab will appear in the Header screen as shown below . Page xviii of 75 . As described above in procedure for claiming modvat for raw material. d.MM CIN user-manual b. Enter receiving Storage Location in Where tab. c. Check the Excise Details related to the received material in Excise Item tab in Detail Data screen as shown below.select Only Part I on this tab and check the Excise group. Enter the Received Quantity in the Quantity tab in field Quantity in Unit of entry. Here check the stock type in which material is going to receive. e.

following screen will appear Capture the Vendor’s Excise Invoice Go to CIN transaction Menu Path: User menu  Indirect taxes  Procurement  Excise invoice  Incoming Excise invoice  Individual Processing  Capture/Display a. Enter Goods Receipt Document number generated above. Check the Item OK check box and press Check entries button in tool bar to check the g. System will Automatically update the Part I register as soon as the GR is made. Press Post button to save the Goods receipt . Select Capture Excise Invoice and Goods Receipt in windows above the Header. Press Enter. Page xix of 75 .MM CIN user-manual f.system will generate the Goods receipt Document. b. l.

MM CIN user-manual a. If Excise Invoice is faulty and still want to take the credit for the excise invoice. c. enter the rejection code . If material had directly came from different vendor. Page xx of 75 .Excise group – A1 onwards (or any other appropriate excise group).Excise Invoice Date . Enter Vendor Excise Invoice Number . b. Enter vendor code in Ship from field in Miscellaneous tab.

e. Check the Duty rate in Duty rate tab. Check the Material Chapter Heading.MM CIN user-manual d. Page xxi of 75 . Check the Quantity in Quantity tab f. Material type in Item tab in Detail Data screen.

Excise Invoice will be captured and following screen for information will be displayed. Press save button to post the entry. Check duty values and Tax amount for the material in Duty value tab. Tick the Item OK check box and Press button to check the entries.MM CIN user-manual g. h. Check the Part I entries which are created immediately after the GR in Part I tab. i. h. Page xxii of 75 .

MM CIN user-manual Post the Vendors Excise Invoice Menu Path: User menu  Indirect taxes  Procurement  Excise invoice  Incoming Excise invoice  Individual Processing  Change/Display/Post/Cancel a. Page xxiii of 75 . b. Enter Vendor Excise Invoice which is captured in previous Step and press Enter. Select Post and Vendor Excise Invoice in windows above the Header. following screen will appear with all the details captured from the Vendor ‘s Excise Invoice.

Following screen will appear. Press the Post bottom . following screen will appear Page xxiv of 75 .MM CIN user-manual e. Check the details and simulate to check the postings using Simulate button . this post the Part II entry . Check the postings f.

• Page xxv of 75 .MM CIN user-manual Display Excise Invoice • • Menu Path: User menu  Indirect taxes  Procurement  Excise invoice  Incoming Excise invoice  Individual Processing  Change/Display/Post/Cancel Select Display and Vendor Excise Invoice in windows above the Header .Here you can display both the Part I and Part II entries in one document only. Check the Excise registers in which entry is made.

you are not required to pay any excise duty.MM CIN user-manual Subcontracting without payment of excise duty When you issue materials to a subcontractor. 180 days). Under excise law 57AC. However. you will have to reverse any excise credit that you posted when you purchased the materials. if the materials have not been returned to you within a given length of time specified by the law (in 2000. Create Subcontracting Purchase order To create a subcontract order. The reason for this close monitoring has to do with India’s tax law. you will have to post credit entries to the extent of the CENVAT rate of the assessable value of the materials. even though the materials have left your premises. Enter the material you want to order and the item category for subcontracting (L) in the order item. when you send materials to a subcontractor for processing. you need to keep track of what materials you have issued and when they have to be returned by. Page xxvi of 75 . In the case of materials that you have manufactured in-house. proceed as follows: 1.

It is calculated as follows: Delivery date of the item minus planned delivery time Page xxvii of 75 .MM CIN user-manual Select the line item and click the icon. This date is proposed by the system when you press Enter. Note the following: You do not need to enter the date required for the components. Press Enter to display the screen for component processing. Enter the components that the vendor requires to manufacture the ordered material (end product). 2.

If you want to assign a particular batch of the component to the vendor for the manufacture of the ordered material. for going to the Page xxviii of 75 . set the indicator Fixed quantity. 1. enter the desired batch. Create transfer Posting of materials sent out for sub-contracting with reference to Subcontractor PO. Save the purchase order. 3. On the initial screen enter the Subcontractor (Vendor) code in Vendor. When you print the purchase order. You can determine whether the components are available on the date required by selecting Component List → Component Availability. 4. if the bill of material is subsequently changed).MM CIN user-manual If you do not want the quantity of the components to be changed if the order quantity of the end product is altered. choose Item → Goto → Components → New BOM explosion. The existing components are deleted and redetermined in the bill of material. If you want to determine the components in the bill of material at a later date (for example. Path : Logistics Materials Management Purchasing Purchase Order Reporting  SC Stocks per Vendor. the components are printed per order item. Material number to be given to Subcontractor in Component Provided and Plant and Execute button next screen. the components are created automatically. If you entered a bill of material as the material in the subcontract order.

Select the check box in front of the Material number and press the Post goods Issue tab in the tool bar as marked with arrow. After executing following screen will appear. 3. you will get the following pop up Page xxix of 75 .MM CIN user-manual 2.

Page xxx of 75 . Note this number. 6. 5. For noting the Material number go to following transaction Path : Logistics Materials Management Inventory Management Environment List Display  Material Documents (MB51). Storage Location from which you have despatched Subcontractor Number (Vendor Number). Movement Type 541 and Posting Date in the following screen.Enter Material number which you have despatched . Press on the Popup screen and a following message will be flashed 7.Plant number. then enter the Batch Number in Batch field. System will generate the Material Document Number. Here enter the Quantity in Quantity field to be transferred to Subcontractor and the storage location in Storage Location field from which stock is available for removal. If the material is managed in Batches .MM CIN user-manual 4. 1.

MM CIN user-manual

Press execute button

to go to the next screen, the following screen will be seen,

From this note the Material document and generate the Dispatch Challan as described in Excise Procedures.

Create Subcontracting challan
You create challans from transfer orders to accompany any materials that you send to subcontractors under rule 57AC. In this respect, they are an extended form of delivery note, with

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MM CIN user-manual

additional information about the excise duty on each material that you have supplied. Materials that are not liable to excise duty do not have to be included in the challan. As the subcontractors return the finished goods to you, you record the returns in the challan, to make sure that all are returned within the allotted time limit. If the finished goods returned to you by the subcontractor are of substandard quality, you can also create a subcontracting challan from the returns order Menu path – India localisation menu (J1ILN)  Indirect taxes  Procurement  Subcontracting  Subcontracting challans  Create (J1IF01)

Enter material document number generated while making transfer posting document. Press Enter In the overview tab we can see the transfer posting document document tab. number in the Reference

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In the org data tab we can see the company code, plant, excise group, excise series group and business area.

Select quantiy overview tab and check the quantity.

Press save Note down the document number.

Page xxxiii of 75

Page xxxiv of 75 . the storeperson posts goods receipt. The delivery may not necessarily cover all the goods from the challan: It may also include goods from a number of different challans. The SAP functions allow for this eventuality.MM CIN user-manual This is the consignment document that you will send to the subcontractor along with the materials that are to be processed. Post goods receipt (MIGO) Menu Path: Logistics  Materials Management  Inventory management Goods movement  goods receipt  for purchase order Purchase order no. Known (MIGO) Enter the PO number Check the quantity in the quantity tab. Select Only Part 1 in the excise tab. You send the materials to the subcontractor. When the goods are delivered back to you. The subcontractor processes the materials and returns the finished goods. along with a printout of the subcontracting challan.

and Mat. Year fields. Reconcile Subcontracting challan Menu path – India localisation menu (J1ILN)  Indirect taxes  Procurement  Subcontracting  Subcontracting challans  Reconcile Quantity (J1IFQ) Enter the following data: In the Material Doc. enter the challan numbers and the years in which they were created. enter the number of the goods receipt document and the year in which it was created. In the table below. Select save icon.MM CIN user-manual Press check and a signal will appear. Doc. Page xxxv of 75 . Note down the goods receipt document number.

MM CIN user-manual Press icon. all containing the same material. Check the challan numbers against which the material was sent to subcontractor. enter manually the quantity of materials has been returned. by choosing . you can automatically specify that the materials should come from the oldest challans first. Page xxxvi of 75 . Otherwise. at the bottom is the information from the challans that you have entered. At the top is the information about the goods receipt (or other document). and choose to refresh the display. for each challan. If you have sent a subcontractor a number of different challans. A new screen appears.

Depending on what selection criteria you enter. Once you have accounted for all the materials in the goods receipt. but not reconciled d) Which challans' reference documents have been canceled e) Annexure IV Menu path : India Localisation menu (J1ILN) → Indirect Subcontracting → Reports → Challan Listing (J1IFR) Taxes → Procurement → Page xxxvii of 75 . save the challan by choosing icon .MM CIN user-manual Choose and check the tab open quantity and assigned quantity. You get the message material document xxxxx year xxxx was successfully reconciled. you can use it for finding out: a) Which challans are still with the subcontractor and are due back the following week b) Which challans you can make a recredit for c) Which challans have been entered for a goods receipt. List of subcontracting challans You use this report to create a list of subcontracting challans.

g. We select the challan status – F which means to show list of challans with status fully reconciled. Enter the challan number and year. Press Complete/Reverse/Recredit Subcontracting challan Menu Path : India Localisation menu  Indirect Taxes → Procurement → Subcontracting → Subcontracting Challans → Complete/Reverse/Recredit.MM CIN user-manual You can give any selection criteria for generating the report. Page xxxviii of 75 . e.

Subcontracting with payment of excise duty Page xxxix of 75 . Display Subcontracting challan Menu Path : India Localisation menu  Indirect Taxes → Procurement → Subcontracting → Subcontracting Challans → Display(J1IF12).MM CIN user-manual Choose Select Complete Challan Save the challan . Note down the message as given below. Enter the challan number select The challan is displayed. . Enter the challan number select The challan is displayed. Change Subcontracting challan Menu Path : India Localisation menu  Indirect Taxes → Procurement → Subcontracting → Subcontracting Challans → Change (J1IF11).

Page xl of 75 .4.4. Create a purchase order on the vendor supplying input material as per the documentation given in vol.1 under heading create purchase order for stock material. Please note the following things. Providing input material to subcontractor from outside vendor. a) Delivery address in the item details should be mentioned subcontractor’s address and the SC check box should be selected. Create subcontracting order for conversion charges Create subcontracting order as per documentation in 1. where material is sent for conversion charges to subcontractor on payment of excise duty and finished product is received at the depots from the subcontractor. Providing input material to subcontractor from Rallis manufacturing unit Create transfer posting document as per documentation in 1.2 for the input materials which are required to be supplied from Rallis manufacturing units.1.MM CIN user-manual This scenario covers the Rallis requirement.

Select material document number (transfer posting number from document prepared in 1. Page xli of 75 .MM CIN user-manual Create an outgoing excise invoice for the materials. You send the materials to the subcontractor. Menu path : India localisation menu  Indirect taxes  Sales/outbound movements  Excise invoice  For other movements  Excise invoice for other movements (J1IS) Press . together with the excise invoice.4) Press Press .5.

Press . Confirming finished goods stock at Subcontractor’s premises.MM CIN user-manual Note down the number. Press . Page xlii of 75 . subcontractor will give a document of production confirmation and on basis of this document the Rallis Regional office person will make a goods receipt against the subcontracting purchase order. Take a printout and send the material from Rallis manufacturing site. When input material is converted into finished product. Select from the Pull down menu Goto  Print document. Select Please note down the excise invoice number.

Select the entry Only part 1 in the excise tab. Please note that do not press the icon. Page xliii of 75 .MM CIN user-manual To do goods receipt process please follow the standard process as mentioned in the documentation in vol 1 under the heading Inventory management  goods receipt against purchase order. Material requirement of depot on subcontractor. Create a stock transport purchase order from depot on regional office (plant in SAP). Enter supplying plant in the supplying plant tab Mention the depot plant number in the receiving plant tab. (ME21N) Select Stock transport order from the first tab and the screen will change. Menu path : Sap easy access menu  Logistics  Materials Management  Purchase order  Create  Vendor / Supplying plant known.

Despatch of material from subcontractor to depot. regional office person will create a outbound delivery with reference to the stock transport purchase order mentioned above in 1. Then. capture the excise invoice for the material which is being Please follow the standard process for claiming cenvat credit for raw materials as mentioned in the documentation above. The regional office will also instruct the subcontractor to enter the outbound delivery in the despatch excise invoice. Save the purchase order. Note down the number.MM CIN user-manual Put the other terms and conditions as per the standard purchase order as mentioned in the documentation in volume 1 in create purchase order for stock items. Menu path : Sap easy access menu  Logistics  Logistics Execution  Outbound process  Goods issue for Outbound delivery  Create  Collective processing of documents due for delivery  Purchase orders (VL10B) Select Page xliv of 75 . The regional office person will despatched to the depot. The outbound delivery number will be used as a reference for making the goods receipt at depot and the subcontractor excise invoice will be put in the reference text field while making goods receipt.5.6.

MM CIN user-manual Select the line item and Press . Page xlv of 75 . Select Select Select Select and then select .

Select the ikon Message will appear repleshment delivery saved. Select . Page xlvi of 75 . The material gets transferred from the storage location of Regional office into stock in transit of the depot plant. Run report MB5T and enter the material number and receiving plant to see the stock in transit.MM CIN user-manual Enter storage location SC01 (storage location having address of subcontractor) and put the quantity to be despatched from subcontractor as picking quantity.

Save the goods receipt. Goods receipt at Depot. The procedure for making goods receipt will be standard as per the procedure mentioned earlier in documentation volume 1 – goods receipt with reference to purchase order. Procedure for claiming CVD benefit for imported material. The depot will make goods receipt with respect to the outbound delivery number which is mentioned on the subcontractor’s excise invoice. Create Purchase order for imports Create a purchase order for the materials that you want to order using the standard procedure as mentioned in above documentation but when you fill out the item information. Page xlvii of 75 . (instead of purchase order. user has to select the outbound delivery in the reference tab).MM CIN user-manual The stock in transit is displayed.

MM CIN user-manual Make sure that you observe the following: Invoice tab Enter a zero-rate tax code Deselect GR-based IV Conditions tab a. b. Select the countervailing duty (CVD) condition and choose . enter the rate of CVD that will be levied on the material when it arrives at customs. Page xlviii of 75 . In the Rate field.

in Enter the custom vendor number in the vendor field. Page xlix of 75 .MM CIN user-manual c. To do this select the CVD condition which is marked by arrow and then press button the conditions tab. enter the vendor master record that you have created for the customs office. The vendor ships the goods to you. In the vendor field.

Also enter the amount of other custom duties if any. Do not enter any other taxes. Once they have inspected the goods. If not.MM CIN user-manual When the goods arrive in India. they send them on to you. To enter the invoice for bill of entry follow standard invoice verification procedure but make sure you observe following Header Data • Basic data tab o o In the Amount field. party (Invoicing party) field. they go through customs. enter the customs office’s vendor master record in the Inv. Page l of 75 . enter the amount of countervailing duty (CVD) stated on the bill of entry in rupees. together with the bill of entry. which is in effect an invoice for the CVD on the goods. In order to record the bill of entry in the system The excise clerk enters a invoice for the bill of entry. The customs officers issue a bill of entry for the goods. Entering invoices for Bill of Entry The goods arrive at your plant. • Details tab o Assuming you specified in the purchase order that the CVD was to be paid to the customs office. the system shows the customs office as the vendor.

Select Planned delivery costs. enter the purchase order number and select Planned delivery costs. If you only created one purchase order for the goods. iii. Enter all of the purchase order numbers in the table. ii. enter data as follows: Enter the number of the purchase order related to this delivery. Select Deliveries and deselect Returns. 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. Page li of 75 . Choose . Choose Adopt. iv.MM CIN user-manual Line Items On the PO reference tab. v.

In the Quantity field. Choose Post. enter the amount of CVD on the item (if you have more than one item. enter the quantity of goods on the invoice. the system displays the line items in the line item overview For each line item: In the Amount field. A dialog box appears with a list of the postings that will be made to Financial Accounting (FI). Enter a zero-rated tax code. you may have to work the amount out manually). Note down the document number (commercial invoice number) Page lii of 75 .MM CIN user-manual In both cases. Choose Simulate.

In the top line: Select Capture Excise Invoice Select Purchase Order. Enter the purchase order related to the bill of entry. you do not need to enter the invoice number.MM CIN user-manual Capturing Excise invoice (Bill of Entry) Menu path : India Localisation menu (J1ILN) → Procurement → Excise Invoice → Incoming Excise Invoice → Individual Processing → Capture/Display. enter the number in the top line as for step 3. Note that the countervailing duty is displayed in the basic excise duty fields. Enter other data as required. Choose A dialog box appears. Note that this time. Page liii of 75 . Enter the number of the invoice that you entered for the bill of entry and choose If you need to enter any other purchase orders. 3.

MM CIN user-manual Enter the bill of entry number and date in the excise invoice number and Doc date field respectively Save the excise invoice. Page liv of 75 .

Known (MIGO) Enter the PO number Select Select and then Note down the Goods receipt number Post Excise Invoice (Bill of Entry) Page lv of 75 .MM CIN user-manual Post goods receipt (MIGO) Menu Path: Logistics  Materials Management  Inventory management Goods movement  goods receipt  for purchase order Purchase order no.

Page lvi of 75 . Check that the data is correct. choose If the data is correct. To close the dialog box. choose Post CENVAT.MM CIN user-manual Menu path : India Localisation menu (J1ILN) → Procurement → Excise Invoice → Incoming Excise Invoice → Individual Processing → Change/Display/Post/Cancel. Select Post CENVAT and Vendor Excise Invoice Enter the number of the excise invoice that you created for the bill of entry. Choose Simulate CENVAT 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. the signal is .

The updation of registers includes receipts and issues. The classification of receipts and issues is done by selecting the appropriate classification as per the table given below. Creation of Excise Registers You follow this procedure to create the excise registers. Page lvii of 75 .MM CIN user-manual The system posts the CENVAT (CVD Amount) and creates a corresponding entry in Part II or the appropriate excise register. Three steps are to be followed for creation and printing of the excise registers Updation of Registers (RG1).

The inhouse produced material will be confirmed by way of process order confirmation in storage location at plant (e. Stock will be available in the system in storage location PL01. b. a.PL01). Now the stock in production location is moved in RG1 by transfer posting (movement type 311) Page lviii of 75 .MM CIN user-manual Receipt updation of Registers (RG1). Process of receiving material in RG1 can be given below step by step. See stock overview(MMBE) c.g.

Select movement type 311 and storage location FG01 (RG1 location). On the selection screen. in the Document header and Document details group boxes. you specify • Which documents you want to cover: o o Enter general organizational details in the Company details group box.MM CIN user-manual Save the document and note down the number. Also select appropriate classification type (RMA) in case of receipt from manufacture. Enter details about the documents that you want to include in the register. d. Now go to the Menu Path : India Localisation menu (J1ILN)  Indirect Taxes → Registers → Excise Tax → Update RG 23A/C Issues and RG 1. Page lix of 75 .

in the Registers group box Select Page lx of 75 .MM CIN user-manual • Select register RG1.

e.MM CIN user-manual Then select The signal becomes Then put tick in checkbox and select for updating receipt in RG1 register. See stock overview again (MMBE) Page lxi of 75 . RG1 Register is updated and the screen looks as given below.

Page lxii of 75 . Stock of technicals will be available in RG1 storage location (FG01). When a RG1 material (technicals inhouse produced) is used for captive consumption (for formulation) following steps will be followed. See stock overview of material.MM CIN user-manual Issues updation of RG1 register for captive consumption. 1.

When a material is removed from RG1 for captive consumption an excise invoice has to be prepared with zero excise duty and mentioning for captive consumption. Material movement takes place from RG1 location to formulation location by transfer posting. Page lxiii of 75 . Save and note down the transfer posting document number. Menu path : India Localisation menu  Indirect taxes  Sales/Outbound movements  Excise Invoice  For other movements  Excise invoice for other movements (J1IS) Select . (movement type 311).MM CIN user-manual 2. 3. Excise invoice is created in system with reference to transfer posting document.

series group and customer number (put the customer number of manufacturing unit) Press enter and following screen appears Press . Menu path : India Localisation menu  Indirect taxes  Sales/Outbound movements  Excise Invoice  For other movements  Excise invoice for other movements (J1IS) Select . Post excise invoice. Page lxiv of 75 .MM CIN user-manual Enter the reference material document number (transfer posting) and excise group. Enter the internal excise number generated. 4.

Page lxv of 75 . Note down the excise invoice number. Print the excise invoice if required. 5. Select .MM CIN user-manual Press .

Select movement type 311 and storage location FG01 (RG1 location). Also select appropriate classification type (IWT) in case of removal without payment of duty for transfers. • Select register RG1. in the Registers group box Page lxvi of 75 .MM CIN user-manual Select excise invoice and print. in the Document header and Document details group boxes. Menu Path : India Localisation menu (J1ILN)  Indirect Taxes → Registers → Excise Tax → Update RG 23A/C Issues and RG 1 (J1I5). 6. Updating the issue of material in RG1 register. you specify • Which documents you want to cover: o o Enter general organizational details in the Company details group box. On the selection screen. Enter details about the documents that you want to include in the register.

RG1 Register is updated and the screen looks as given below. See stock overview again (MMBE) Page lxvii of 75 .MM CIN user-manual Select Then select The signal becomes Then put tick in checkbox and select for updating issues from RG1 register. 7.

Page lxviii of 75 .MM CIN user-manual Data extraction Menu path : India localisation menu  Indirect taxes  Registers  Excise Tax  Extract (J2I5) On the selection screen enter the excise group. start date (of the month) and end date (of the month) and select the registers for which the data extraction is required.

MM CIN user-manual Select Following screen appears Page lxix of 75 .

Select On the selection screen select the excise group. start date (of the month) and end date (of the month). Menu path : India localisation menu  Indirect taxes  Registers  Excise Tax  Print utility program (J2I6) On the selection screen select the registers which are to be printed.MM CIN user-manual Register printout You use this report to print out your excise registers. Select Page lxx of 75 .

Page lxxi of 75 .MM CIN user-manual Select suitable printer and print the register.

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