Beginners Guide To Sap Cin Taxation PDF

Hand Book for SAP Taxation-India Hand Book for SAP Taxation-India
Author : Sundar Krishnan

Doc Code : SAP-Taxation-India
Book For : SAP FI-MM-SD CIN Consultants AGENDA
• OBJECTIVE
Language : English • GLOSSARY
SAP : ECC 6.0 • BACKGROUND – CIN
• INTERFACE BETWEEN SAP AND CIN
• INDIAN LOCALISATION COVERAGE
• CONFIGURATION
FI-CIN, MM-CIN, SD-CIN
• PROCESSES IN SAP WITH CIN
PROCUREMENT
SALES
FINANCE
REPORTS
OBJECTIVE
To enlighten the participants on country version
India (cin) and the various requirements which are
to be completed under the Indian statute.
How cin interfaces with sap sd, mm and fi

processes and meets the report requirements .
At the end of the presentation , each participant

will have a fair knowledge of the requirements and
interfaces of cin with sap.
1 2
CENVAT – Central Value Added Tax. The tax is
levied on the difference between the output and the
GLOSSARY input value. This is also referred as MODVAT.
CIN - COUNTRY VERSION INDIA CESS – Cess is a tax imposed for a specific
INPUT TAX -Tax that is charged by the vendor. purpose under different acts with reference to
A claim for refund of the deductible portion of certain goods. Cess is levied at the time of removal
input tax can be submitted to the tax authorities of goods from the factory.
OUTPUT TAX -Tax levied on customers at all OCTROI – A levy payable on the material to the
levels of production and trade. local authorities.
Output tax represents a tax liability. NCCD – National calamity Contingent Duty. This
SERVICE TAX - Tax levied on the customer on tax is a special purpose tax levied for prescribed /
services specified by the Government. scheduled product announced by the Finance
DEPOT - Depot is a plant where the material is ministry of India. This tax is cenvatable.
stored and sold. There is no manufacturing activity Purchase Tax – This is a tax levied by some states
at the depot. The depots when registered with the when the manufacturer received a material from
excise authorities can pass on the Modvat / cenvat the out side state has to pay the purchase tax.
benefits to the customer. Service Tax – The service provider who has the
EXCISE DUTY (BED) - A quantity-based tax registration with the Central Excise can collect the
which must be paid when a dutiable material is tax for the service provided. This is also
moved from a duty-free (bonded) location to a cenvatable and it can be utilized for payment
duty-paid (unbonded) location or the customer. excise duty or payment of service tax.
Also known as excise tax. The excise duty is based VAT – Government of India introduce the Value
on the quantity / Value of material moved. Added Tax from April 2005. As the first stage, it is
AED – Additional Excise duty is a duty which is removing various sales tax slabs. It is the modified
calculated over and above the Excise Duty payable version of Local sales tax and it is cenvatable.
on the material. Education Cess - Additional tax for the
SED – Special Excise Duty is an additional duty improvement of the regional Education introduced
levied on certain materials depending on the in India union budget in 2005.
characteristics of the material. The statute specifies Higher Secondary Education Cess - Additional
these materials. tax for the improvement of the regional Higher
CVD – Countervailing duty is a levy charged on Education introduced in India union budget in
the imports of materials in lieu of excise duty. 2007.
3 4
ASSESSABLE VALUE - Denotes the value of REGISTERS – The registers are the books
goods that you have manufactured in-house at the prescribed having specific format under the statute
price as assessed by an authorized auditor. e.g RG23A,RG23C,RG23D,RG1and PLA
SETOFF – A certain percentage of input tax which RETURNS – The prescribed forms having a
is refunded by the government to the specified format under the statute e.g.ER-1,
manufacturer. This refund does not form part of 57AE,ANNUAL RETURN FOR TDS, Quarterly
material cost EFILE.
CHAPTER ID –All materials that are required for
manufacturing and subsequently those which are
manufactured, are classified under the Central
Excise Law into chapters. These chapters are
further subdivided into headings and subheadings,
which together form the chapter ID. Chapter ID BACKGROUND
721618.10 is an example. FIRST VERSION DEVELOPED IN 1996 IN
INTERSTATE TRANSACTIONS - A transaction RESPONSE TO NEEDS OF INDIAN
where the goods / material are traded between two CUSTOMERS
different states. STANDARD PRODUCT SUPPLIED BY SAP AS
CONCESSIONAL TAX FORMS – The AN ADD-ON
Government announces tax concessions in excise FROM 4.70 IT IS ADDED IN THE STANDARD
and taxes on sales and purchase. This can be PACK
availed by submitting the forms prescribed by the CONFIRMS TO SAP DEVELOPMENT
Government. E.g ‘C’ form , ARE-1, ARE-3 , CT1, STANDARD (LOOK AND FEEL ETC)
CT2 SUPPORTED BY SAP DEVELOPMENT LAB AT
TDS - Tax deducted at source ( Withholding tax) BANGALORE
is a form of indirect taxation deducted at the ALL BUDGET 2009 CHANGES
beginning of the payment flow. Generally, an
INCORPORATED
amount is withheld and paid over or reported to
the tax authorities on behalf of (as opposed to by)
the person subject to tax, the exception being self-
withholding tax.
If a withholding tax exemption is available,
withholding tax is not withheld.
5 6
CIN INTERFACE WITH SAP INDIAN LOCALISATION COVERAGE

COVERS THE FOLLOWING
CENTRAL / LOCAL SALES TAX / VAT
SALES TAX SETOFF
PURCHASE TAX
CONCESSIONAL TAX FORMS
SERVICE TAX – INPUT/OUTPUT
OCTROI
BASIC / ADDITIONAL / SPECIAL
EXCISE DUTY/ADDITIONAL DUTY ON
CUSTOMS/CESS/EDUCATION CESS &
NCCD/HIGHER EDUCATION CESS
MAINTENANCE OF RATES ON
VENDOR CLASS
MAINTENANCE OF RATES AS
PERCENTAGE & AMOUNT
UTILISATION OF MODVAT
MONTHLY PAYMENT
CVD ( IMPORTS)
SUB-CONTRACTING
SUB-CONTRACTING CHALLANS
COUNTRY VERSION INDIA INSTALLATION RECONCILIATION OF QUANTITIES
COPIES THE FOLLOWING (UPTO 4.6C) (TCODE O035) MAINTENANCE OF 57F4 REGISTER
STANDARD INDIA TEMPLATES MODVAT
TAX PROCEDURE (TAXINJ / TAXINN) UPDATING OF PART-I REGISTER FOR
CONDITIONS – EXCISE, TAXES ON QUANTITY
SALES & PURCHASE, UPDATING OF PART-II REGISTER FOR
SERVICE TAX, CVD ETC VALUE
TABLES , FUNCTION MODULES , NO.RANGE UPDATING OF RG23D REGISTER FOR
OBJECTS, CUSTOMER EXITS DEPOT
PRINTING OF EXCISE REGISTERS
PART-I / PART-II REGISTERS
NOTE: DON’T RUN THIS O035 IN THE RG1 REGISTER
ROLEOUT PROJECTS. FOLLOW THE OSS RT12 / ER1 RETURN
PLA REGISER
NOTE:899096 &719154 FACILITY FOR DOWNLOAD
7 8
EXTENDED WITHHOLDING TAX
CONFIGURATION
WITHHOLDING TAX ON DOWN PAYMENTS / Country India Version [FI-CIN]
INVOICES / PROVISIONS
ACCUMULATIONS Table of Content
MULTIPLE TAX LINE ITEMS IN ONE INVOICE
CALCULATION ALTERNATIVES (GROSS, NET, CONFIGURING TAX PROCEDURE TAXINN
OFFSET)
ROUNDING OPTIONS
PAYMENT DUE DATES BY BUSINESS PLACE 1) Define Tax Procedures
CHALLAN UPDATE AND ACCOUNT CLEARING
SURCHARGE ON WITHHOLDING TAX a) TAXINN
ECS AND HECS CALCULATION. b) TAXINJ – only procedure
CERTIFICATE NUMBERING FOR DIFFERENT
SECTIONS / BUSINESS PLACE c) Assign Country to Calculation Procedure
CERTIFICATE PRINTING WITH CUSTOMISABLE d) Activate Country Version India for Specific Fiscal
LAYOUT Years
QUATERLY RETURNS FOR VARIOUS SECTIONS OF e) Defining Tax Codes for Sales and Purchases
INCOME TAX ACT
PROVISIONAL ACCOUNTING FOR SERVICES.
CHEQUE NO PRINTING WITH CERTIFICATE 2) Define Access Sequence.
PAN NO OF VENDOR/CUSTOMER IN THE
CERTIFICATE a) JTAX
E-FILING. b) JST1
3) Define Condition Types
a) MM Excise condition types

b) SD Condition Types
c) Service Tax Condition Types
4) Checking and Changing [Account Key] Settings for

Tax Processing
5) Define Tax Accounts
9 10
The calculation procedure determines for which amount the individual
condition types are to be calculated. This can be the base amount (total of
Configuring Tax Procedures the expense items and the revenue items) or a subtotal. The entry in
column FrmLvl, determines for which amount tax is calculated.
Tax on Sales/Purchases
Note
The taxes on sales/purchases include input tax, output tax, acquisition
tax and additional taxes. In this activity, the condition types for the check and the possible change
provided in the standard system are also displayed. Here, for example, the
condition calculation rule, or for which base amount the tax is calculated is
In addition to tax codes, percentage rates and tax accounts, you have to determined (= condition type).
specify whether the cash discount amount reduces the tax base amount,
depending on the company code. This reduction is, for example, possible
in Belgium but not in Germany. Recommendation
The following sections describe the specifications you must make for If possible, do not change the condition types and calculation procedures
calculating taxes on sales/purchases. provided in the standard system. Only check the standard condition types
and calculation procedures regarding whether you can use them for your
requirements. If necessary, make changes.
1. Check Calculation Procedure /Defining Tax
Procedures Activities
If you cannot use the standard settings, change the condition types and
Transaction OBQ3 calculation procedures delivered to meet your requirements.
code
IMG menu Financial Accounting (New) – Financial
Accounting Global Settings (New) → Tax on
Sales/Purchases → Basic Settings → Check
Calculation Procedure
In this activity, you can check and, if necessary, change existing

procedures for tax calculation.
Standard settings
Calculation procedures containing the necessary specifications for the

calculation and posting of taxes on sales/purchases have already been
defined in the standard SAP system for certain countries. Every calculation
procedure groups several tax types together into a condition type (for Double Click on Define Procedures
example, output tax or input tax) in the calculation procedure, and
determines calculation rules for it.
11 12
Procedure (Pricing, Output Control, Acct. Det.,

Costing,...)
Specifies the conditions that are allowed for a document and defines the
sequence in which they are used.
Example
Procedures are used, for example, in the following applications:
• Pricing in sales and distribution
• Applying overhead in Product Costing (costing sheets) and for

CO internal orders
• Calculating accrued costs in Profitability Analysis
Default values :
• Output control (printed confirmations, EDI messages, electronic
mail)
• Usage : Usage of the condition table
• Account determination
Determines for which area the condition is used (for example, pricing or
output). • Calculating taxes on sales/purchases
• Application • Calculating accruals in Cost Center Accounting
Subdivides the usage of a condition (for example, pricing) for use in • Pricing for resource planning
different application areas (for example, sales & distribution or
purchasing).
13 14
a) TAXINJ PROCEDURE
• Select the Procedure TAXINJ

• Click on Control Data in Dialog Structure
Window
TAXINJ PROCEDURE CONTROL

VALUES
(PENDING)
15 16
b) TAXINN PROCEDURE TAXINN PROCEDURE CONTROL VALUES
(PENDING)
Field Explanations:
Step number
Number that determines the sequence of the conditions within a
procedure.
Condition counter
Access number of the conditions within a step in the pricing procedure.
During automatic pricing, the system takes into account the sequence
specified by the counter.
Condition Type
The condition type is used for different functions. In pricing, for example,
the condition type lets you differentiate between different kinds of discount;
in output determination, between different output types such as order
confirmation or delivery note; in batch determination, between different
strategy types.
Description
From Ref. Step for Percentage Conditions

Condition step, the value of which is the basis for percentage surcharges.
If you specify a to reference step at the same time, the condition values of
the two steps specified and the conditions values of the steps in between
are totalled. In this case, percentage surcharges are calculated on the
basis of the total.
17 18
Example: Condition determined manually
Level CType Description FromSt ToSt ActKy
Use
10 A-B1 Wages
Conditions, that are given this indicator in the pricing procedure, are only
included in determination (price determination, output determination, batch
20 A-B2 Salaries
determination) either if they are entered manually, for example, on the
condition overview screen in Pricing or if they are transferred from an
30 A-B3 Overtime/Wages external process, such as costing.
40 A-Z1 Vacation bonus 10 30 E11

Condition is mandatory
The surcharge for step 40 is added to the total of steps 10 to 30.
Indicates whether the condition is mandatory when the system carries out
pricing using this pricing procedure.
To reference step (for percentages)
Example
Condition step up to which the condition values of the previous steps are
totalled. Percentage surcharges are calculated on the basis of the total.
If, for example, you always want to include a tax condition (VAT or sales
tax) during pricing, you can set this indicator for the appropriate tax
If you specify a from reference step at the same time, the condition values condition type.
of the two steps specified and the condition values of the steps in between
are totaled.
Definition: pricing procedure
Example:
Sales and Distribution (SD)
Step CType Description FromSt ToStep AcctKey
A rule type for pricing.
10 A-B1 Wages
The pricing procedure defines the conditions permitted for a document and
20 A-B2 Salaries the sequence in which the system takes these conditions into account
during pricing.
30 A-B3 Overtime/Wages
A standard pricing procedure is defined in the standard SAP system. It
contains conditions most commonly used. These include material prices,
40 A-Z1 Vacation bonus 10 30 E11 discounts, and surcharges, such as freight, or tax.
The surcharge for step 40 is added to the total of steps 10 to 30.
19 20
Profit Center Accounting (EC-PCA) • 'S' : Condition line is printed in totals block
A pricing procedure defines how values posted in the SAP system are The following standard logic is set out for these printing indicators:
calculated.
o Item POS of the last condition line is determined with 'X'.
A pricing procedure can consist of the following types of rows:
o All condition lines that contain an item smaller than POS
in the pricing procedure are only printed if print
• Base rows, which contain the amount or quantity to which
indicators 'X' or 'S' are set.
overhead is applied
o All condition lines that contain an item larger than POS

• Calculation rows, which contain a percentage rate to be applied in the pricing procedure, that come before the first tax
to the base lines condition line and which have a non-statistical VAT
condition, receive printing indicator 'S'. The same
• Totals rows, which contain a sum of base amounts and calculated applies for condition lines that contain an item larger
amounts than POS in the pricing procedure, that come after the
first tax condition line and an active non-statistical VAT
condition.
Pricing procedures are used in Profit Center Accounting to calculate
transfer prices.
o Condition lines that represent a tax condition type are
always printed in totals blocks with print indicator 'S' (set
Condition is used for statistics internally or externally).
This indicator causes a surchage or discount to be set in the document o Condition lines that represent a condition type that is not
statistically (that is, without altering the value). a tax condition type are only printed with print indicator
'S' (set externally or internally) if the condition value of
the condition line is not zero. Condition lines that do not
Print ID for condition lines represent a condition type (i.e. subtotals) are only
printed with print indicator 'S' or 'X' (set externally or
Controls issue of condition lines when printing documents such as order internally) if the condition value of the condition line is
confirmations or invoices. different from the condition value of the previous
condition line in the pricing procedure.
Use To provide a better overview of this process, 8 more print parameters are
available as of Release 4.0. These print indicators cannot, however be
In releases previous to 4.0, the following print indicators are available : mixed with the three previous print indicators ' ', 'X' and 'S' in the pricing
procedure. This means that the new indicators are only taken into account
if a no condition lines in the pricing procedure contain printing indicators 'X'
• ' ' : Condition line is not printed or 'S'.
• 'X' : Condition line is printed at item level
21 22
The new printing indicators have the following settings, and corresponding
influence on processing.
o 'A' : in total: general Requirement
o 'B' : in total: if value <> zero If the requirement is fulfilled (SY-SUBRC = 0), then output determination
also takes into consideration output type or the access sequence, for
which the requirement has been specified.
o 'C' : in total: if value <> value of predecessor
o 'D' : in total: if value <> zero and value <> value of Examples
predecessor
A possible requirement would be, for example, that a difference should be
o 'a' : at item : general made between document currency and local currency .
o 'b' : at item : if value <> zero Definition: message determination

'c' : at item : if value <> value of predecessor
o
Message Control (CA-GTF-BS-MC)
o 'd' : at item : if value <> zero and value <> value of
predecessor An object that checks whether the application data (for example, data
determined in Customizing) corresponds to the condition records.
Condition subtotal If this is the case, one or several messages are "found," which can then be
processed (for example, sent electronically).
Controls whether and in which fields condition amounts or subtotals (for
example, a customer discount or the cost of a material) are stored. The condition records are searched for according to a predefined hierarchy
in message determination.
Use
Condition formula for alternative calculation
If the same fields are used to store different condition amounts, the system type
totals the individual amounts.
Alternative formula to the formula in the standard system that determines a
Example condition.
These condition amounts or subtotals are used as a starting point for Alternative formula for condition base value
further calculations. You may, for example, want a subtotal of all the
discounts included in the pricing of a sales order.
Formula for determining the condition basis as an alternative to the
standard.
23 24
Example c) Assigning Country to Calculation Procedure
An absolute header discount is, for example, distributed in the standard →
system according to the cumulative value of the items.
→
If the system, however, distributes the absolute header discount according
to volume, a header discount of $30 results in the following discounts: → →
Item Value Volume Discount

Stand. disc. Volume disc.
1 $1000 2 cbm $20 $10
2 $500 4 cbm $10 $20
Account key
Key that identifies different types of G/L account.
The account key enables the system to post amounts to certain types of
revenue account. For example, the system can post freight charges
(generated by the freight pricing condition) to the relevant freight Country Key
revenue account.
The country key contains information which the system uses to check
entries such as the length of the postal code or bank account number.
Account key - accruals / provisions
The two-character ISO code in accordance with ISO 3166, which is
Key which identifies various types of G/L accounts for accruals or delivered by SAP as a default, is usually used.
provisions.
It could also be the vehicle license plate country-code or a typical country

With the aid of the account key, the system can post amounts to certain key, for example, in Germany the Federal statistics office key.
types of accruals accounts. For example, rebate accruals which are
calculated from pricing conditions can be posted to the corresponding
account for rebate accruals. The country keys are determined at system installation in the global
settings.
Since the country key does not have to correspond to the ISO code in all
installations, programs that differ according to certain values of the country
key cannot query the country key T005-LAND1, but have to program
based on the ISO code T005 INTCA.
25 26
Procedure (Pricing, Output Control, Acct. Det., Indicator: Active
Costing,...)
Use
Indicates whether a change status is active or not. If you mark this
indicator, the engineering change is relevant for requirements planning
and delivery.
d) Activating Country Version India for Specific Procedure

Fiscal Years
Transaction code SPRO If you enter both a delivery date and serial number here, the system
automatically sets this indicator to "active".
IMG menu Financial Accounting (New) → Financial
Accounting Global Settings (New) → Tax on However, you may want to enter several material numbers for a certain
Sales/Purchases → Basic Settings → India → delivery date, but decide later which serial numbers to activate. In this
Activate Country Version India for Specific case, simply unmark the indicator.
Fiscal Years
Component in ACC Interface

This field defines an SAP interface component that you can activate,
deactivate, or delete in the accounting interface.
To-year
Fiscal year up to and including which the transaction applies.
27 28
1. Check the standard tax codes for your country. Add further tax
codes, if necessary.
2. Ensure that tax accounts are defined for the automatic posting
e) Defining Tax Codes for Sales and Purchases of taxes.
Transaction code SPRO
Notes on transporting tax codes
When tax codes are transported, the tax rates of the tax codes are
Sales/Purchases → Calculation → Define Tax transported using auxiliary table T007V. Logical transport object FTXP is
Codes for Sales and Purchases used to transport the definition data of the tax code from table T007A and
the language-dependent name to table T007S.
Define Tax Codes for Sales and Purchases The tax accounts for the tax codes (table T030K) are not transported.
Use The internal jurisdiction codes are also not transported.
You have to define a separate tax on sales/purchases code for each The transport of tax codes between systems or clients consists of two
country in which one of your company codes is located. steps:
Each code contains one or more tax rates for the different tax types.
1. Step:
If you have to report tax-exempt or non-taxable sales to the tax authorities, Export tax codes from source system or source client
you need to define a tax rate with the value 0.
2. Step:
Note Import tax codes into target system or target client
Do not delete or change any taxes on sales/purchases codes and their

definitions as long as items with these codes exist in the system. Export
Otherwise, the SAP system displays the tax amounts with incorrect tax 1. In the source system or client, in Customizing for the Financial
rates in the corresponding reports and determines incorrect amounts Accounting Basic Settings, choose Tax on Sales/Purchases ->
during a tax adjustment for payment transactions. Calculation -> Define Tax on Sales and Purchases Code.
2. Choose Tax Code -> Transport -> Export.
Standard settings 3. Assign the export to the relevant transport request and make a
note of the request number.
4. Select and save the tax codes to be transported.
SAP supplies a tax calculation procedure for each country. The procedure 5. Make sure that the selected tax codes have the transport
comprises a list of all common tax types with rules for tax calculation. In number in table T007V.
addition, example tax codes are defined for some countries. To check the table, in the SAP menu choose Tools -> ABAP
Workbench -> Overview -> Data Browser.
Activities Enter the table name. The tax codes are in the MWSKZ fields, the
tax jurisdiction codes in the TXJCD fields.
6. Arrange the transport of the request to the target system.
29 30
To transport the request, in the SAP menu choose Tools -> ABAP Choose Country IN.
Workbench -> Overview -> Workbench Organizer -> Environment
-> Customizing Organizer.
Import
1. Make sure that the transported tax codes are recorded in table
T007V of the target system or target client.
2. In the source system or client, in Customizing for the Financial
Accounting Basic Settings, choose Tax on Sales/Purchases ->
Calculation -> Define Tax on Sales and Purchases Code.
3. The tax codes should have been created in the target system
without a tax percentage rate by the import.
Otherwise you can do this manually:

In the target system, create the tax codes that do not exist there. Tax codes as per Client / customer requirements be created.
Create the tax codes completely, but without tax percentage One for Input nil tax code and another for Out put nil tax code.
rates. Note: Don’t maintain any % in any condition here.
If you use internal systems in company codes in the USA or
Canada, the relevant tax jurisdiction codes should also exist. You
make the settings for the tax jurisdiction code in Customizing for
Financial Accounting Basic Settings under Tax on Sales and
Purchases -> Basic Settings -> Define Tax Jurisdiction Codes.
4. Choose Tax Code -> Transport -> Import.
5. Check the proposed values for the transport request and
country.
6. Run the import.
31 32
Some Example Tax codes :
!
"
# $
%
& $
' !
( !
) * +
)! !
)) $
) $
) ! +
), - +
). / 01 * 2 3 *
)4 / 01 * 2 3 *
)( + + + /
5 2 67
5 2 67
5 2 67
! ! 5 2 67
5 2 67
33 34
@ : 9 > 5" 2 6 7
+ / 8 6 5 2 67 @ : 9 > 5" 2 6 7
9 + 59 :2 6 7 @ : $ 9 > 5" 2 6 7
" / 01 * 2 @$ : 9 > 5; 2 6 7
# + 59 ::2 6 7 @ : 9 >
; 6 5; 2 6 7 @ : 9 >
: + 9( 5:2 6 7 @9 : $ 9 >
< 5 2 67 @: : 6
. < : 9 > < #5 7
9 8 < : 9 > #5 7
9 8 !$ < : 9 > < #
= : 9 > 5 2 67 <! : 9 > #
= : 9 > 5 2 67 < : $ 9 > < #
= : $ 9 > 5 2 67 < : $ 9 > #
=$ : 9 > 5 2 67 <$ : 9 > < #
=- : 9 > 5 2 67 <- : 9 > #
= : $ 9 > 5 2 67 < : 9 > < #
= : 9 > 5 2 67 <A : 9 > #
= : 9 > 5 2 67 < : $ 9 > < #
=9 : $ 9 > 5 2 67 <) : $ 9 > #
=: : 9 > 5 2 67 < : 9 > < #
=? : 9 > 5 2 67 < : 9 > #
=% : $ 9 > 5 2 67 <9 : 9 > < #
= : 9 >! 5 2 67
= : 9 >! 5 2 67
=& : $ 9 >! 5 2 67
=' : 9 > 5 2 67
= : 9 > 5 2 67
=, : $ 9 > 5 2 67
35 36
2. Defining /Maintaining Access Sequence

Settings
Transaction code OBQ2 / OBYZ

IMG menu Financial Accounting (New) – Financial
Sales/Purchases → Basic Settings → Check
Calculation Procedure
DOUBLE CLICK ON ACCESS SEQUENCES
Double Click on Access Sequences
When we use OBYZ
Enter
Caution: The table is cross-client

Message no. TB113
37 38
Diagnosis
You are in the process of maintaining a cross-client table. You are using
the standard table maintenance screen here, which is frequently used to
maintain client-specific Customizing entries. This message serves to warn
you that each change you make will have an effect on all other clients in
the system.
System Response
You have the authorization required for cross-client maintenance.
Procedure
Think carefully about the effect of your changes. Due to logical
dependencies between client-specific Customizing and applications data
on the one hand and cross-client Customizing data on the other hand,
changing or deleting cross-client data could result in inconsistencies.
Therefore such changes should be carefully planned and coordinated, Access sequence
taking all the clients in the system into consideration.
With the access sequence you define
• the condition tables used to access the condition records
• the sequence of the condition tables
• which field contents are the criteria for reading the tables
• Description
39 40
Select the Access Sequence and double click

on Accesses in Dialog structure window.
JTAX – ACCESS SEQUENCE
Access sequence - Access number

Indicates the number of the access within the access sequence.
Condition table
A combination of fields that defines the key of a condition record.
For each condition type in a pricing procedure, you define an access

sequence. The access sequence tells the system where to look for
relevant condition records for a particular condition type (a rebate for a
specific customer, for example). Each access in the access sequence
refers to a condition table. The fields defined in the table (the key) help the
system to locate valid condition records.
Procedure
When you create a condition table, you specify one or more target fields as
the table key. You must also tell the system where to find the value for
each target field. You do this by specifying source fields. The source fields
are usually the same as the target fields, but they can differ. For example,
41 42
if the target field "Customer" is part of the key, you can specify that the
system uses "Ship-to party" as the source field and takes the value from
there.
Select the Access Number and Double click on Fields in
Dialog Structure window.
Explanatory short text
This text is displayed when you generate reports or call documentation, for
example
Requirement
If the requirement is fulfilled (SY-SUBRC = 0), then output determination
also takes into consideration output type or the access sequence, for
which the requirement has been specified.
Examples
A possible requirement would be, for example, that a difference should be
made between document currency and local currency .
Indicator: Exclusive condition access

Controls whether the system stops searching for a record after the first
successful access for a condition type within an access sequence.
43 44
45 46
JST1 – ACCESS SEQUENCE [FIELD

EXPLANATIONS REMAIN SAME]
47 48
Field for condition table

Name of the field from the condition record.
Definition: condition record
Sales and Distribution (SD)

Data record with input and output values for a task.
The condition record is created or changed with condition record

maintenance and selected in the determination process.
The output values are dependent on chosen input values (for example,
customer, customer group, product) and are valid for a certain time period.
A condition record can, for example, contain a specific free-goods discount

for a particular product quantity, or a specific discount for a particular
business partner.
Message Control (CA-GTF-BS-MC)

A data record whose key fields display the requirement (condition) under
which the message is found.
The other fields describe the message. Therefore, if one of the data
records transferred by the application corresponds to these key fields, the
message is found and can be processed (for example, in print form or as
an electronic message).
Definition
49 50
The symbols are used to display how the document data is used in the Dictonary. The text is displayed on the screen in the logon language of the
condition access and how the data determined in the access is transferred user (if the text was translated into this language).
back to the document.
A heading can be defined to output the field values in lists. This heading is
Arrows indicate the direction of the data transfer, the equal sign stands for automatically included in the list header row, in the logon language.
an access with a direct value. The tools indicate that the data transfer must
be ensured when setting up pricing by adapting the system using formulas
and requirements. Spec. Val. Source
The green LED indicates automatic processing and a red LED marks a Value which the system automatically assigns to a field when it accesses
line, where data for correct processing is missing. the condition record.
Table name of the document structure Dependencies
Specifies an internal table in which condition information about documents A field can contain either the value of the source field or the value of a
is stored. constant (a direct value).
Table field for document structure Characteristic: Initial value allowed
Determines the data dictionary characteristics for new fields in data The initial inicator has two functions within Customizing for access
dictionary structures. sequences. Firstly, it controls that the system does not access the
condition if the field in the document header/item is blank or 0. Secondly,
during automatic return transfer of data that were determined in the
Use access, it allows an initial value to be returned.
Reference fields are necessary for the generation of data dictionary Processing type in access
structures for conditions and information structures. A reference structure
and a reference field must always be entered.
The processing type determines how the corresponding field is used for
the condition access. A field can be marked as belonging to the fixed/free
Long Field Label key part or else as not relevant for the access.
Fields that are defined as data fields for the definition of condition tables
Definition are automatically marked with an access type.
One of the following:

- Short field label Dependencies
- Medium field label
- Long field label The processing type influences processing for fields in an access
Can be assigned as prefixed text to a screen field referring to the ABAP
51 52
Characteristic Values
Definition
This valuation describes a priority for the characteristics which can be
used as fields when you create condition tables or document fields for
pricing. You can enter values from 01 (very high) to 99 (very low).
The valuation controls how the system selects from the condition records
determined from an access with a free key part. The more fields that are
filled with a high priority in the key of a condition record, the more likely it is
to be used for the document.
If no two fields have the same value, then the access is guaranteed to
determine exactly one condition record.
3. Defining condition Types
Transaction code OBQ1 Condition Type

IMG menu Financial Accounting (New) – Financial Accounting
The condition type is used for different functions. In pricing, for example,
Global Settings (New) → Tax on Sales/Purchases the condition type lets you differentiate between different kinds of discount;
→ Basic Settings → Check Calculation Procedure in output determination, between different output types such as order
strategy types
Condition type Name
Condition Class Description

Enter text here that best describes the module.
Calculation type Description

Double click on Define Condition Types
Enter text here that best describes the module.
53 54
MM Excise Condition Types [ Access 27. JNIP Inp NCCD w/o Cr %
Sequence : JTAX] 28. JNOP Inp NCCD Cr %
29. JNX1 Inp NCCD Cr Total
1. JAIP IN AED inventory % 30. JNX2 Inp NCCD w/o Cr Tot
2. JAIQ IN AED inventory Qty To see the Details of each condition Type OBQ1:
3. JAOP IN: AED setoff %
4. JAOQ IN: AED setoff Qty
5. JAX1 IN: A/P AED setoff
6. JAX2 IN: A/P AED inventor
7. JEC1 Inp Ecess Cr %
8. JEC2 Inp Ecess w/o Cr %
9. JEX1 Inp Ecess Cr Tot
10. JEX2 Inp Ecess w/o Cr Tot
11. JHX1 Inp SEcess Cr Tot
12. JHX2 Inp SEcess w/o Cr To
13. JMIP Inp BED w/o Cr %
14. JMIQ IN: BED inventory Qt
15. JMOP Inp BED Cr %
16. JMOQ IN: BED setoff Qty
17. JMX1 Inp BED Cr Total
18. JMX2 IN: A/P BED inventor
19. JSEI Inp SEcess w/o Cr %
20. JSEP Inp SEcess Cr %
21. JSIP IN SED inventory %
22. JSIQ IN SED inventory Qty
23. JSOP IN: SED setoff %
24. JSOQ IN: SED setoff Qty Select the condition type and click on details icon on
25. JSX1 IN: A/P SED setoff application tool bar.
26. JSX2 IN: A/P SED inventor
55 56
1. JAIP IN AED inventory %
2. JAIQ IN AED inventory Qty
57 58
3. JAOP IN: AED setoff %
4. JAOQ IN: AED setoff Qty
59 60
6. JAX2 IN: A/P AED inventor
5. JAX1 IN: A/P AED setoff
61 62
7. JEC1 Inp Ecess Cr %
8. JEC2 Inp Ecess w/o Cr %
63 64
10. JEX2 Inp Ecess w/o Cr Tot
9. JEX1 Inp Ecess Cr Tot
65 66
12. JHX2 Inp SEcess w/o Cr To
11. JHX1 Inp SEcess Cr Tot
67 68
13. JMIP Inp BED w/o Cr %
14. JMIQ IN: BED inventory Qt
69 70
15. JMOP Inp BED Cr % 16. JMOQ IN: BED setoff Qty
71 72
17. JMX1 Inp BED Cr Total 18. JMX2 IN: A/P BED inventor
73 74
19. JSEI Inp SEcess w/o Cr % 20. JSEP Inp SEcess Cr %
75 76
22. JSIQ IN SED inventory Qty
21. JSIP IN SED inventory %
77 78
23. JSOP IN: SED setoff %
24. JSOQ IN: SED setoff Qty
79 80
25. JSX1 IN: A/P SED setoff 26. JSX2 IN: A/P SED inventor
81 82
28. JNOP Inp NCCD Cr %
27. JNIP Inp NCCD w/o Cr %
83 84
30. JNX2 Inp NCCD w/o Cr Tot
29. JNX1 Inp NCCD Cr Total
85 86
Plus/minus sign of the condition amount
Screen field values: Controls whether the condition results in an amount that is negative (a
discount), positive (a surcharge), or whether both positive and negative
[ Explanation holds good for all categories amounts are possible.
of Conditions Types]
Procedure
Condition Type
If the condition amount can be either positive or negative, leave the field
The condition type is used for different functions. In pricing, for example, blank. Otherwise, enter one of the indicators that specify plus or minus.
the condition type lets you differentiate between different kinds of discount;
in output determination, between different output types such as order
Calculation type for condition
strategy types.
Determines how the system calculates prices, discounts, or surcharges in
a condition. For example, the system can calculate a price as a fixed
Name amount or as a percentage based on quantity, volume, or weight.
Access sequence The calculation type can be set when generating new condition records. If
this does not happen, the calculation type maintained here is valid for the
condition record.
With the access sequence you define
• the condition tables used to access the condition records
• the sequence of the condition tables
• which field contents are the criteria for reading the tables
Condition class
Preliminary structuring of condition types e.g. in surchages and discounts
or prices.
Use
Allows standardised processing of individual condition classes within the

system.
87 88
controls whether the condition type should be a duplicated condition or a
cumulated condition.
Condition category (examples: tax, freight, This control is only helpful when you use bill of materials or configurable
price, cost) materials.
A classification of conditions according to pre-defined categories (for A duplicated condition is duplicated into all assigned items.
example, all conditions that relate to freight costs).
A cumulated condition contains the net value of all assigned items.
Rounding rule
Group condition
The rule that determines how the system rounds off condition values
during pricing. The last digit will be rounded. Indicates whether the system calculates the basis for the scale value
from more than one item in the document.
Example
Use
• In the standard rounding rule '_', values are rounded off according
to business standards: For a group condition to be effective, the items must belong to a group.
You can freely define the group to meet the needs of your own
organization. The items can, for example, all belong to the same material
10.454 -> 10.45 DEM
group.
10.455 -> 10.46 DEM
• In rounding rule 'A', values are always rounded up: Example
10.459 -> 10.46 DEM A sales order contains two items. Both items belong to the material group
10.451 -> 10.46 DEM 01.
• In rounding rule 'B', values are always rounded down: Material Quantity Material group
A 150 01
1045.9 -> 1045 LIT B 100 01
1045.1 -> 1045 LIT
In this example, the currency of the condition rate is Italian Lira.
The Italian Lira does not have any places after the point. The group condition indicator is set in the definition of the condition type
for material group discounts. The condition record for material group 01
includes the following pricing scale:
Structure condition
Scale quantity Discount
from 1 pc -1%
89 90
from 200 pc -2% A: Freely definable
Neither item alone qualifies for the 2% discount. However, when the items B: The automatic entry has priority. If a condition record exists, the
are combined as part of a group condition, the combined quantity creates condition cannot be entered manually.
a basis of 250 pieces. This basis then exceeds the scale value of 200
pieces, which is necessary to qualify for the higher discount. C: The manual entry has priority. When you enter the condition
Routine number for creating group key manually, the system does not check whether a condition record
exists.
Identifies a routine that calculates the basis for the scale value when a
D: Cannot be processed manually
group condition occurs in pricing.
Example Condition applies to header
You can specify a routine, for example, that totals the value of all items in If this condition is marked as a header condition, it is possible to enter the
a document in order to determine the basis for a discount. condition type in the header condition screen. Checks for changing the
condition manually are unaffected by this.
Rounding difference comparison Condition rate of change for amount/percentage

Indicator that controls whether rounding difference is settled for group
Specifies whether the amout or percentage for the condition type can be
conditions with a group key routine.
changed during document processing.
If the indicator is set, the system compares the condition value at header
level with the total of the condition values at item level. The difference is Scope for changing conversion factors
then added to the largest item.
Specifies whether the conversion factors for the units of measure in
Making manual entries conditions of this type can be changed during document processing.
Indicator which controls the priority within a condition type between a Condition applies to items
condition entered manually and a condition automatically determined by
the system.
Procedure
&WHAT_TO_DO?
Mark this field if the conditions of this type are allowed to be entered in
the document items. The condition is then only valid for the particular item
Make the following entries according to your requirements: in which it is entered.
_: No limitations
91 92
Delete the scope for changing rate Procedure
Indicator that controls whether the condition type may be deleted from Enter one of the predefined pricing procedures that control condition
the document. supplements. If you leave the field blank, the condition supplement
function in the screens where you maintain the corresponding condition
records is inactive.
Scope for changing the value
Specifies whether the value of the condition type can be changed during Example
document processing.
You define a pricing procedure to control a condition supplement for a
material price. The condition supplement specifies discounts that you want
Proposed starting date for the rebate validity the system to apply every time the system accesses a material price
period condition record. When you define the condition type for a material price,
you enter the pricing procedure that you defined for the condition
supplement.
Specifies the beginning validity date that the system automatically
proposes when you create a rebate agreement of this type.
Date proposed as valid-to date
Example
Proposed value for how long a condition should remain valid.
You can, for example, specify that the system proposes the first day of the
current week, month, or year. The system proposes this value for the Valid to date when you create
condition records.
Procedure Condition records should be deleted from the

If you want the system to propose the current date, leave the field blank. database
Otherwise, enter one of the values predefined for your system.
You can use this indicator to control how the system operates when
deleting condition records.
Sales and Distribution: Pricing Procedure in
Pricing You have the following options:
Determines which condition types can be used in a document and in • SPACE: You can set an indicator so that the condition record is
which sequence they appear. no longer used in pricing. The condition record is then archived in
the archiving run. This is how things happened before Release
The system uses the pricing procedure that you enter here to control the 4.6A.
use of condition supplements in records of this condition type. You can
apply the discounts that are defined in the pricing procedure as condition
supplements during pricing.
93 94
• A: You can delete the condition records from the database. You For source determination for services, service conditions for the vendor
then receive a popup, asking whether the condition record should are taken into consideration in the same way as info records, if the flag
actually be deleted or whether the deletion indicator should Condition Index is set for condition type Total Price (PRS).
simply be set.
Reference application
• B: You delete the condition records from the database. You only
receive a popup if there are condition supplements available.
Application, that can be used to refer to condition records from other
• Reference condition type applications.
• A condition type which can be used as a reference so that you
only have to create condition records once for condition types that You only have to create condition records once for condition types that are
are very similar. very similar. You can also refer to condition records from other
• Use applications.
• You may need to use different condition types for the same
condition. These can differ in the access sequence, the You will find further information on the ReferencCondType field in the
description, the reference stage of the pricing procedure or the documentation.
calculation type, for example.
• You can enter the condition type under which the condition
records are created.
Scale basis indicator
• Example Determines how the system interprets a pricing scale in a condition. For
• Condition type MWSI only differs with condition type MWST in the example, the scale can be based on quantity, weight, or volume.
calculation type. For this reason an entry is made in field
ReferenceCondTypeMWST for condition type MWSI . Now,
condition records only need be created for condition type MWST Formula for scale base value
and not additionally for MWSI.
• Dependencies Formula for determining the scale base value.
• Field RefApplication is used to refer to condition records from
other applications. You can use this formula to specify calculation methods that are not
provided in the standard system.
Update condition index
Checking rule for scale rates
Specifies whether the system updates one or more condition indices
when maintaining condition records. Indicates whether the scale rates must be entered in ascending or
descending order.
This makes it possible to list or maintain condition records independently
of condition type and condition table, for example.
Dependencies
95 96
If you mark the field, the system converts the condition value into the
document currency after multiplication. If you leave the field blank, the
system converts the condition value into the document currency before
Scale unit multiplication.
Unit of measure that the system uses to determine scales when you use Condition exclusion indicator
group conditions.
Indicates whether the system automatically excludes the discounts that are
The system proposes the unit of measure when you maintain records for proposed during pricing.
group conditions that are either weight or volume dependent.
You can set this indicator in two ways:
Scale Type
• For a particular condition record (the field appears on the Details
Indicator that controls the validity of the scale value or percentage: screen)
• From a certain quantity or value (base scale) • For all records of a particular condition type (the field appears
on the screen where you define the condition type)
• Up to a certain quantity or value (to-scale)
Note
Alternatively, it is possible to work with interval scales. Interval scales must
be stored in the condition type, that is, the scale type "interval scale" If you set the indicator to exclude conditions, there are several things to
cannot be changed in the condition record. The reason for this is technical consider:
restrictions resulting from the programming within pricing.
• The system will still take into account any condition

Indicator: Currency Translation after supplements that are part of the condition record for the price
Multiplication (condition type PR00, for example)
Controls the currency conversion where the currency in the condition • You can allow for exceptions where you want to include discounts
record varies with the document currency. in spite of the condition exclusion indicator (for a particular
discount condition you can specify a requirement that applies the
discount ONLY when the indicator is set)
To calculate a condition value in a document, the system multiplies the
amount that results from the condition record by the item quantity. This
indicator controls whether the system carries out currency conversion Condition is Relevant for Accrual (e.g.
before or after the multiplication takes place.
Freight)
Procedure • Indicates that the system posts the amounts resulting from this
condition to financial accounting as accruals.
97 98
• If you mark this indicator, the condition appears in the document Quantity conversion
as a statistical condition.
This field controls the quantity conversion during determination of the
Condition for configuration condition basis.
• Before Release 4.0 variant conditions (VA00) had to be created The field is only relevant for calculation rule 'C' (quantity- dependent.
with the condition category 'O'
• Problem: It was not possible to indicate a 'Variant condition' at It is relevant if the sales quantity unit and the condition quantity unit are
the same time as 'Internal costing condition' and 'Freight'. identical (and is different to the basis quantity unit).
• Solution: For this reason more indicators are being set up in 4.0
for the condition type: • Deactivated: The condition basis quantity is converted via the
• * 'Variant condition' (KVARC) quantity to the stock keeping unit. This means that the condition
• * 'Internal costing condition' (KFKIV) quantity is determined for planned factors. This means that a
• The characteristic values O and I for the condition category must change to the conversion factors in the delivery or the order are
no longer be used. not taken into account. Rounding errors can occur during quantity
• For more information, see the note 93426. conversion.
• Activated: If the sales quantity unit and the condition quantity unit
Pricing date are identical, the quantity of the document item is used, i.e. the
actual quantity.
Procedure
Condition for inter-company billing
• Enter the identification code for the date to which a condition of
this type is to be calculated in the sales document. If you do not • Conditions for Internal Costing, for example PI01 and PI01 were
enter an identification code, the pricing date or the date of defined before Release 4.0 by KNTYP = I (Price for internal
services rendered is used. costing).
• Problem: It was not possible to indicate 'Freight condition' at the
Example same time as 'Internal costing condition' and 'Variant condition'.
• Solution: Therefore a new indicator 'Internal costing condition'
(KFKIV) has been set up. You can use this to indicate a freight
• It is a good idea to use the goods issue date as the calculation condition as an internal costing condition. For more information,
date for freight surcharges. In this case, you enter 'A' as the see note 93426.
identification code.
Relevance for account assignment

Condition for invoice list
Controls how account assignment is performed for conditions of this type.
• Marks the condition type as relevant for internal costing.
99 100
Procedure • Specifies which text ID appears in Text Edit Control.
• The text ID defines the different types of texts that belong to a
text object.
If you leave the field blank, account assignment is performed in the usual
way.
If you enter the indicator B, the system includes the accounting indicator
SD Condition Types [Access Sequence:
in the account assignment process. The information from the condition JST1]
record is forwarded to Controlling with the classification "accounting
indicator". The system links the condition record to the underlying billing
document item to find the accounting indicator that has been assigned to a JIPC IN C Sales tax inv.
particular transaction.
JIPL IN L Sales tax inv.
In the standard system, the condition type KBM1 is set up for use in JIPS IN Sales tax setoff
transactions involving an accounting indicator. JVCD Inp VAT Cr CG
JVCN Inp VAT w/o Cr CG
Account assignment using an accounting indicator is often used in Service
Management. It enables you to identify how costs incurred by a particular JVCS Inp CST under VAT
service transaction arose (for example, goodwill, under guarantee). JVRD Inp VAT Cr Non-CG
JVRN Inp VAT w/o Cr Non-C
Text determination procedure
Identifies a group of text types that you can use in, for example, a sales
To see the Details of each condition Type
document header. The text procedure also determines the sequence in OBQ1:
which the text types appear in the document.
Example
The text procedure for a sales document header could include the
following text types:
• A standard header text that the system automatically includes in

the document
• Standard terms of delivery

Click on details icon
• Standard terms of payment
Text ID for text edit control

101 102
JIPC IN C Sales tax inv.
JIPL IN L Sales tax inv.
103 104
JIPS IN Sales tax setoff JVCD Inp VAT Cr CG
105 106
JVCN Inp VAT w/o Cr CG JVCS Inp CST under VAT
107 108
JVRD Inp VAT Cr Non-CG JVRN Inp VAT w/o Cr Non-C
109 110
Service Tax Conditions (ACCESS SEQ:
MWST): JSVD Inp / AP Service Tax Cr
AP - Accounts Payable – SERVICE

TAX TO CHANGE ACCESS
TCode: OBQ1
Condition Type Description
JSVD Inp / AP Service Tax Cr
JEC3 Inp / AP SerTx Ecess Cr
JSE1 Inp / AP SerTx SEcess Cr
JSER Inp SrvTx (Not used)
JEC4 Inp SrvTxEces w/o Cr
JSE2 Inp SrvTxSEces w/oCr
JSV2 Inp SrvTx w/o Cr
111 112
JEC3 Inp / AP SerTx Ecess Cr JSE1 Inp / AP SerTx SEcess Cr
113 114
JSER Inp SrvTx (Not used)
JEC4 Inp SrvTxEces w/o Cr
115 116
JSE2 Inp SrvTxSEces w/oCr JSV2 Inp SrvTx w/o Cr
117 118
4. Checking and Changing [Account If you cannot use the standard settings, use new process keys and enter
them in your calculation procedure. Do not change the standard SAP
Key]Settings for Tax Processing process keys.
Note
In this activity you make the necessary specifications for posting taxes. In
doing this you specify under a process key the following indicators:
You must make enhancements to the standard settings if you want to
specify a new account key in the "Create calculation procedure" activity.
• Tax type You must create and maintain this key beforehand in the "Settings for tax
processing" activity.
Output tax, input tax, additional taxes, or "not tax-relevant" can be
specified as the tax type.
Transaction OBCN
code
• Nondeductibility of tax amounts
For this, tax amounts are marked as not deductible. Accounting Global Settings (New) → Tax
on Sales/Purchases → Basic Settings →
• Posting indicator
Check and change Settings for Tax
Processing
Here you specify whether the tax amount is posted separately or
distributed to expense or revenue items.
• Tax not relevant to cash discount (Not discount relevant)
This indicator is set only for Canada. If you select it, the system
does not take into account the corresponding tax amount when
determining the tax base.
Standard settings
Process keys with the most important characteristics for tax amounts have
already been set in the standard SAP system.
Recommendation
Do not change the standard settings. Check whether you can use these
process keys for your company, making changes only if necessary.
Activities
119 120
Internal processing key VS8 Inp SrvTxEces Cr 2 2
VS9 Inp Ecess Cr 2 2
The internal processing keys are used by the system to determine
accounts or posting keys for line items which are created automatically. Outp Ecess on Srv
ZSE Tx 1 2
The processing keys are defined in the system and cannot be changed by
the user. Outp SEces on Srv
ZSS Tx 1 2
Text (20 Characters)
Not 5. Defining Tax Accounts

Proces Tax Non Postin disscnt
s Description type deductible g indic. rel. )
ESA Outp Srv Tx 1 2
ESE Inp SrvTx Cr 2 2 B
B B
JI5 Inp SrvTxSEces Cr 2 2 B !
JI6 Inp SECess Cr 2 2
JN6 Outp VAT 1 2
JN7 Outp CST under VAT 1 2
JP4 Inp CST under VAT 2 X 3 In this activity, you specify the accounts to which the different tax types are
to be posted. The system determines these accounts for automatic
JP5 Inp VAT Cr Non-CG 2 2 postings.
Inp VAT w/o Cr Activities

JP6 NonCG 2 X 3
JP7 Inp VAT Cr CG 2 2 Define the tax accounts.
JP8 Inp VAT w/o Cr CG 2 X 3

Notes for the transport of tax accounts
VS1 Inp BED Cr 2 2
When you transport tax codes between different systems or clients, no tax
VS2 Inp AED Cr 2 2 accounts are transported.
VS3 Inp SED Cr 2 2
Adjust the tax accounts in the source and target system (or source and
VS5 Inp LST Setoff 2 2 target client) manually.
121 122
BPI 2636421
JI5 Inp SrvTxSEces Cr N 8 40 50
BPI 1871900
JI6 Inp SECess Cr N 0 40 50
BPI 1662211
JN6 Outp VAT N 1 40 50
Outp CST under BPI 1662212
JN7 VAT N 1 40 50
BPI 2637211
JP5 Inp VAT Cr Non-CG N 1 40 50
BPI 2637211
JP7 Inp VAT Cr CG N 2 40 50
BPI 1871900
VS1 Inp BED Cr N 0 40 50
BPI 1871900
VS2 Inp AED Cr N 0 40 50
BPI 1871900
VS3 Inp SED Cr N 0 40 50
BPI 2636421
VS8 Inp SrvTxEces Cr N 6 40 50
BPI 1871900
VS9 Inp Ecess Cr N 0 40 50
Posting
Keys
Transactio CO GL Debi Credi
n Description A Account t t
BPI 1814110
ESA Outp Srv Tx N 1 40 50
BPI 2636421
ESE Inp SrvTx Cr N 1 40 50
123 124
MM-CIN CONFIG Define g/l accounts for taxes
Specify excise accounts per excise transaction.
Table of Content – MM-CIN Specify g/l accounts per excise transaction
LOGISTICS GENERAL – TAX ON GOODS MOVEMENTS
Business Transactions
Basic Settings
Maintain excise registrations
Maintain company code settings
Incoming Excise Invoices
Maintain plant settings
Select fields.
Maintain excise groups
Define processing modes per transaction.
Maintain series groups
Define reference documents per transaction.
Maintain excise duty indicators
Maintain rejection codes.
Maintain postal addresses
Specify which movement types involve excise invoices
Maintain sub transaction types
Excise Invoice Capture against Delivery in the Background.
Determination of Excise Duty

Subcontracting
Select tax calculation procedure
Subcontracting attributes.
Maintain excise defaults.
Maintain movement type groups
Condition-Based Excise Determination

Utilization
Defining tax codes for purchasing documents.
Utilization Determination
Assignment of tax codes to company code.
Maintain Minimum Balances for Excise Accounts
Classify condition type.
Excise Registers
Master Data
Specify sap script forms.
Maintain Chapter ids
Assign users to material mater screen sequence for Excise
Duty Tools
Define form types Long Texts
Number ranges.
Message control.
Account Determination
125 126
I. Basic Settings
A. Maintain Excise Registrations
Transaction SPRO
code
IMG menu Logistics – General → Tax on
Goods Movements → India →
Basic Settings → Maintain Excise
Registrations
In this IMG activity, you maintain the data relating to your excise
registrations.
Enter each of your excise registrations, specifying a four-character code

for each.
Excise registration
To define excise registration click on New Entries icon and enter
the Excise registration code. Maintain the details for an Excise
An entity in India that is entitled by law to produce any goods liable to Registration.
excise. Each entity is assigned its own excise registration number. Every
ECC number
factory that manufactures excisable goods is required to register
separately, so that a business with seven factories requires seven
registrations. A tax number assigned, in India, by the Department of Revenue to legal
and natural persons liable to excise duty. The taxpayer is required to
obtain a separate ECC number for each registered premises (for example,
factory, warehouse, or dealer's premises).
Excise registration number
The number used to identify an excise registration (India only). When a

business registers with the local excise authorities, the authorities issue it
a separate number for each registration.
Excise range
127 128
A subdivision, in India, of an excise division. The excise ranges are Excise Register Set Description
responsible for issuing ECC numbers.
Description of the excise register set.
Excise division
Partial CENVAT Credit
A subdivision of an excise commissioner ate, in India. In turn, excise
divisions are split up into excise ranges.
Specifies that the excise registration is allowed to credit only a portion of
its input excise duty to its CENVAT account.
Excise commissioner ate
An administrative body, in India, that assesses and collects excise duty. It
Dependencies
reports to the Central Board of Excise and Customs. There are around 90
commission rates in India, and they are subdivided into excise divisions,
which in turn are divided into excise ranges. When you post a goods receipt, the system splits the input excise duty on
Additional excise duty the material into its deductible and nondeductible amounts. It posts the
deductible duty to the appropriate CENVAT account, and adds the
nondeductible duty to the material value.
A form of excise duty, in India, levied on a select range of products, for the
most part, textiles.
This information is also shown when you post the incoming excise invoice.
Special excise duty

Indicator for confirming NCCD Usage
A form of excise duty in India on a limited number of goods, mostly luxury
NCCD - National calamity contingency duty. Select this Indicator if
goods, including pan masala, sparkling waters, furs, and yachts.
NCCD Usage is applicable.
Cess Liable to AT1, AT2.
In India, a tax on the manufacture of certain products, mostly foodstuffs. Select this indicator if Excise Registration Is Liable to AT1
(Additional Tax 1 In this case S.H.Ecess).The same is applicable in
Number of Items in Excise Invoice case of AT2 and AT3.
B. Maintain Company Code Settings
Shows the maximum number of line items that you are allowed to include
in a single outgoing excise invoice.
Dependencies
IMG menu Logistics – General → Tax on Goods
This information affects the transactions for creating outgoing excise Movements → India → Basic Settings →
invoices for factory sales and for other movements. This information is Maintain Company Code Settings
used to split the transfer postings' items into multiple subcontracting
challans.
129 130
Document Type for CENVAT Postings
Controls which document type the system uses when making CENVAT
postings in Financial Accounting (FI).
Document type for FI posting on Utilization

Financial accounting document type for TDS posting.
Overwrite Debit Accounts
Allows users, when entering journal vouchers, to overwrite the proposed

debit accounts depending on the nature of transaction.
First Month in Excise Year

Specifies which calendar month marks the beginning of the excise year.
• Dependencies
If the excise authorities change the start month, change the month here.
Days to be considered for excise invoice

selection
Number of days from document date for excise invoice selection.
• Example
If the value of this field is 20 and today is 28-03-97. The excise
invoice selection will show the related invoices only for the
period 08-03-97 to 28-03-97.
Number of excise invoices to be selected

131 132
Indicates the number of excise invoices that needs to be selected in the You can use the exchange rate type to define a buying rate, selling rate, or
excise invoice selection. average rate for translating foreign currency amounts. You can use the
average rate for the currency translation, and the bank buying and selling
rates for valuation of foreign currency amounts.
Indicator for item level excise duty round off
Exchange rate type to be used for Export excise duty covers
Rounds off the excise duty on each line item in a purchase order.
Specifies which exchange rate type the system uses to translate excise
• Dependencies duty when you create an outgoing excise invoice for export sales
The system rounds the duty off to the nearest rupee. However, if the duty CVD Clearing Account
amount is less than one rupee then no rounding is done.
Specifies the countervailing duty clearing account.
It does not round off the CENVAT credit to be taken.
Dependencies
When you post an incoming excise invoice for goods that you have
purchased abroad, the system credits the countervailing duty to this
account.
Rounding off of Exicse duty for outgoing

excise invoice C. Maintain Plant Settings
Rounds off the excise duty be paid when you create an outgoing excise
invoice. Transaction code SPRO

• Dependencies Movements → India → Basic Settings
→ Maintain Plant Settings
The system rounds off the excise duty for each line item separately.
In this IMG activity, you maintain excise information relating to your plants.
Exchange Rate Type
Key representing a type of exchange rate in the system. You enter the
exchange rate type to store different exchange rates.
• Example
133 134
Depots are required to prepare register RG 23D, and follow different
procedures for goods receipt and invoice generation.
Excise Registration
Specifies the excise registration.
Procedure
Specify which excise registration this plant belongs to.

Enter Plant and specify Maintain Appropriate excise Registration
number andselect multiple goods receipt Per EI List box and Number of Goods Receipts per Excise Invoice
SAVE.
Specifies whether you are allowed to receive more than one delivery per
Plant excise invoice, and if so, whether you can take the CENVAT credit
immediately (Multiple Credits) or have to wait until the delivery has been
Key uniquely identifying a plant. made in full (Single Credit).
Definition: plant
D. Maintain Excise Groups
Logistics - General (LO)
In Logistics a plant is an organizational unit for dividing an enterprise Transaction code SPRO
according to production, procurement, maintenance, and materials
planning. IMG menu Logistics – General → Tax on Goods
Movements → India → Basic Settings
A place where materials are produced, or goods and services are
→ Maintain Excise Groups
provided.
Depot In this IMG activity, you define your excise groups. For each excise
group, you can also control how various excise invoice transactions will
work.
Indicates that the plant in question is a depot.
Dependencies
135 136
Definition: excise group
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.
Plant
Key uniquely identifying a plant.
Definition: plant
In Logistics a plant is an organizational unit for dividing an enterprise

according to production, procurement, maintenance, and materials
planning. A place where materials are produced, or goods and services
are provided.
Excise Group Description
Describes the excise group.
Excise Registration
Specifies the excise registration.
Definition: excise registration
An entity in India that is entitled by law to produce any goods liable to

excise. Each entity is assigned its own excise registration number. Every
Excise Group factory that manufactures excisable goods is required to register
separately, so that a business with seven factories requires seven
registrations.
Specifies the excise group.
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Number of Goods Receipts per Excise Invoice Automatically creates two entries in Part I of register RG 23 A or RG 23 C
immediately you post a goods receipt for direct consumption, one entry to
record the goods receipt, and one for the goods issue.
Specifies whether you are allowed to receive more than one delivery per
excise invoice, and if so, whether you can take the CENVAT credit
Uniquely, goods for direct consumption are not added to a material stock.
immediately (Multiple Credits) or have to wait until the delivery has been
Instead, the system posts them straight to a consumption account. You do
made in full (Single Credit).
not create a separate goods issue.
Copy Excise Invoice Quantity to Goods However, with other goods, it is the goods issue material document that
Receipt causes the system to create the Part I entry for the goods issue.
This function overcomes that problem: When you enter a goods receipt for
Instructs the system, when you post a goods receipt using an incoming
direct consumption, the sysstem automatically creates two Part I entries
excise invoice as a reference document, to copy the excise invoice
(for the receipt and the issue) from the goods receipt document.
quantity to the goods receipt.
Create Excise Invoice Automatically • Examples
Instructs the system to automatically create an outgong excise invoice You enter a goods receipt for 100 lengths of steel for direct consumption.
immediately you create a commercial invoice or a pro forma invoice. The system creates a single material document for the goods receipt and
issue. From this material document it generates two Part I entries for
register RG 23 A, one for the goods receipt and another for the goods
The system creates the excise invoice in the background. issue.
• Dependencies Depot
If you want to make use of this function, you must also define the default Indicates that the plant in question is a depot.
plant, excise group, and series groups in Customizing for Excise Duty, by
choosing Business Transactions -> Outgoing Excise Invoices -> Maintain
Default Excise Groups and Series Groups. Dependencies
Depots are required to prepare register RG 23D, and follow different
procedures for goods receipt and invoice generation.
Automatic Posting for J1IS
Generate Folio Numbers
Instructs the system to automatically verify and post excise invoices that
you create using the Excise Invoices for Other Movements transaction Automatically generates a folio number when you post a goods receipts
and goods issues that are recorded in register RG 23D.
Create Part I Entry for Direct Consumption

Dependencies
139 140
If you use this function, maintain the number ranges for the folio number. Use
In Customizing for Excise Duty, choose Tools -> Number Ranges, and Since when you post an excise invoice, the system creates an entry in
create an interval for J_1IRG23D (Folio Numbers). register RG 23A or RG 23C (manufacturing plants) or register RG 23D
(depots), activate this function only if the users working with this
Automatically Verify and Post EIs for Depot Sales transaction are familiar with the excise duty system.
Automatically verifies and posts the selection of excise invoices that you Dependencies
have assigned to a delivery from a depot.
When you run the Goods Movement transaction, it shows two additional
Excise Invoice tabs, one at header level and one at item level.
Address
You enter the goods movement details and the excise invoice information.
Specifies an organization's postal address. When you save the goods movement, you can also post the excise
invoice.
Capture Excise Invoice in MIGO
Post Incoming Excise Invoice at MIGO if duties are changed
Enables users to capture incoming excise invoices when they enter a
goods receipt in the standard Goods Movement transaction, (MIGO). Enables users to post incoming excise invoices in the standard Goods
Movements transaction, (MIGO), even if they have changed any of the
This applies to manufacturing plants and depots alike. excise duty information in the Excise Invoice tabs.
Dependencies Otherwise, if they change the excise duty, the transaction only allows them
to capture the excise invoice, for verification and posting by an excise
supervisor later on.
When you run the Goods Movement transaction, it shows two additional
Excise Invoice tabs, one at header level and one at item level.
You enter the goods receipt details and the excise invoice information. Create Excise Invoice or RG23D Selection in MIGO
When you save the goods movement, the system automatically saves the
excise invoice, to be posted by an excise supervisor later on using the Enables users in manufacturing plants to create outgoing excise invoices
Incoming Excise Invoices transaction. when they enter a goods issue in the standard Goods Movement
transaction, (MIGO).
Post Excise Invoice Captured in MIGO
It also enables users in depots to select the appropriate RG 23D entries
when they enter a goods issue.
Enables users in manufacturing plants to post incoming and outgoing
excise invoices in the standard Goods Movement transaction, (MIGO).
Dependencies
It also enables users in depots to post incoming excise invoices (for goods
receipts) and RG 23D selections (for goods issues).
141 142
When the user runs the Goods Movements transaction, it shows two • Define excise series groups based on type of outgoing document
additional Excise Invoice tabs, one at header level and one at item level.
• Assign series group to excise registration ID
In manufacturing plants, the user enters the goods issue details and the
excise invoice information. When they save the goods movement, the
system automatically saves the excise invoice, to be posted by an excise • If no financial postings are required for an Excise invoice in this
supervisor later on. seris group then you tick the 'No utilization' indicator.
In depots, the user enters the goods issue details and assigns the goods • If the CENVAT has to be paid immediately and you need not wait
to the RG 23D entries that the system created when the warehouseman for the Fort nightly payment then mark the 'Immediate Utilization'
posted the original goods receipt. indicator.
Update RG1 at MIGO Example
Creates an entry in register RG 1 immediately you create an outgoing You could define two series groups, group 001 for excise invoices, and
excise invoice in the standard Goods Movement transaction, MIGO, if the group 002 for 57 F4 documents.
goods in the excise invoice are finished goods.
Otherwise, the RG 1 entry is not created until you execute the Register
Update program.
E. Maintain Series Groups

→ Maintain Series Groups
In this IMG activity, you define the different excise series groups within
your company. Series groups allow you to maintain multiple number
ranges for the outgoing excise documents.
Based on excise regulations and exemptions from the authorities you can
maintain multiple number series for outgoing documents. But each of
these series has to be declared to the excise authorities.
Activities
143 144
• Example
An excise registration uses various types of excise documents, including

outgoing excise invoices and ARE-1s. It creates a series group for the
ARE-1s, but because it has so many excise invoices, it creates two series
groups for these, one for finished materials, and one for raw materials.
Document Series Description

Excise series group description.
Excise Registration
Specifies the excise registration
No account postings for CENVAT in sales

cycle
No utilization Flag
If you do not need any CENVAT utilization for an excise invoice but would
like to just generate an excise invoice then you need to mark this indicator.
Excise Document Series Group
IF the flag is checked then system will create an Excise invoice in the
given Series group but there will not be any account postings or Part2
Specifies the excise document series group.
postings.
Definition: excise document series group

Logistics - General (LO) Immediate Utilization of CENVAT
A system object that excise registrations use, in India, to organize the Specifies that when you create an excise invoice, the system immediately
various types of excise documents into groups. pays the amount from CENVAT and creates the Part II entry. Such
invoices will not be listed for fortnightly utilization.
You group excise documents to reflect the way that the excise documents
are organized in your excise registrations. If you have both fortnightly and immediate utilization for the same excise
group, the account determination within CIN IMG should point to the ED
interim account.
The system numbers each group separately, using a separate number
range interval for each.
145 146
Account determination for immediate payment will be done exactly the Rebate Period
same as being done for fortnightly utilization program.
Specifies the rebate period.
Export Period
This applies to exports under claim for rebate only.
Specifies the export period.
Dependencies
The export period applies to exports under bond and exports under claim
for rebate.
The system does not offer any functions for controlling which ARE-1s have
exceeded the rebate period. SAP recommends that you create your own
Dependencies programs for this purpose, if you wish.
If you try to change an ARE-1 after the end of the export period, the Rebate period
system issues a warning message. You then have two options: Logistics - General (LO)
• If you manage to obtain an extension from the excise department, Under India's exports under rebate scheme, the maximum length of time
you enter the extension date in the ARE-1. This effectively that you are allowed to reclaim any excise duty that you have paid on
extends the ARE-1's export period. exports.
• Otherwise, in the case of exports under bond you must pay the Fast Credit
excise duty plus interest. In the case of exports under claim for
rebate, you forego the excise duty already paid. You then close
the ARE-1 as normal. Automatically credits the excise duty from ARE-1s back to the running
bond account as soon as you enter the date on which you received the
countersigned ARE-1 back from the customs office.
Export period
Otherwise, the system does not credit the duty back until the local excise
Logistics - General (LO) authorities confirm that the export has been completed. Select this
indicator if you have an agreement with your local excise department to
The maximum length of time that you are allowed to export goods from this effect.
India after you have removed them from your premises.
Address
If you exceed the export period, you forego the exemption from basic
excise duty and you must pay the excise duty to the excise authorities.
Specifies an organization's postal address. If you use the Exports Under
Excise Regulations solution, enter a default customs address for this
series group. Otherwise, leave the field blank.
When a user creates an ARE-1 in this series group in the ARE

Documents transaction, the system automatically proposes this address
for the customs department. The address is shown on printouts of ARE-1s.
147 148
Dependencies Transaction code SPRO
You define addresses in Customizing for Logistics - General, by choosing

Tax on Goods Movements -> India -> Basic Settings -> Maintain Postal IMG menu Logistics – General → Tax on Goods
Addresses. Movements → India → Basic Settings →
Maintain Postal Addresses
F. Maintain Excise Duty Indicators
In this IMG activity, you maintain the addresses of various customs and
Transaction code SPRO excise organizations that your company deals with. You use these
addresses in the ARE Documents functions. When you create an ARE-1
IMG menu Logistics – General → Tax on Goods or ARE-3, you enter the address of the excise department and the
customs department involved in the export process. The system then
Movements → India → Basic Settings prints their names and addresses on the AREs.
→ Maintain Excise Duty Indicators
You can then define a default local excise department for each excise
In this IMG activity, you maintain the excise duty indicators group and a default customs department for each series group.
Address
Specifies an organization's postal address. Enter a three-digit code for the
address.
G. Maintain Postal Addresses
Excise Address Description (example)
Addresses maintained for ARE1 documents
Address 1 - Address of C.E.Superintendent:
149 150
Attibele Range, IV Floor, 'A' Wing
Kendriya Sadanaa
Koramangala,
Bangalore - 560 034
H. Maintain Sub transaction Types

Transaction SPRO
code
Movements → India → Basic Settings →
Maintain Subtransaction Types
Sub Transaction Type

In this IMG activity, you can define subtransaction types.
Specifies the subtransaction type and text.
Activities
II. Determination of Excise Duty
By default, the system records excise duties on the accounts that you have
specified in the IMG activity Specify Excise Accounts per Excise
Transaction. A. Select Tax Calculation Procedure
If you want to be able to record some excise duties on other accounts: Transaction code SPRO
1. Create a subtransaction type in this IMG activity. IMG menu Logistics – General → Tax on Goods
2. In the IMG activity Specify Excise Accounts per Excise Movements → India → Basic Settings
Transaction, create a new entry with this subtransaction type → Determination of Excise Duty
and enter the accounts that you want to post to. Select Tax Calculation Procedure
In this IMG activity, you specify which tax procedure you want to use for
determining excise duties and sales taxes on input materials in India.
• If you use condition-based excise determination, use a copy of

the tax procedure TAXINN.
• If you use formula-based excise determination, use a copy of

the tax procedure TAXINJ.
151 152
This tax procedure also supports condition-based excise
determination, so that you can work with both concurrently.
We strongly recommend that new customers use condition-based excise

determination. Note that once you have started using a tax procedure, you
cannot switch to another one, otherwise you will not be able to display old
documents.
Condition-based excise determination - TAXINN

A method that the system uses of determining excise duty in India. This
method requires you to create condition records for each combination of Country Key
vendor or customer and material (and possibly other conditions).
The country key contains information which the system uses to check
When you create a purchasing document, the system calls the tax entries such as the length of the postal code or bank account number.
procedure assigned to India. The tax procedure finds all of the condition
records that you have created for that combination of vendor and material. The two-character ISO code in accordance with ISO 3166, which is
delivered by SAP as a default, is usually used.
When you create a sales document, the excise duties and sales taxes are
determined by the pricing procedure (not the tax procedure).
Costing,...)
Formula-based excise determination - TAXINJ
A method that the system uses of determining excise duty in India. This sequence in which they are used.
method was used in the Country Version India Add-On and requires you to
maintain additional data in the Excise Rate Maintenance transaction, J1ID.
• Example
When you create a purchasing document, the system calls the tax
procedure assigned to India. Each of the excise duties in the tax procedure Procedures are used, for example, in the following applications:
has its own condition types, and each condition type is assigned to a
formula. This formula instructs the system to calculate the excise duty
using the data that you have maintained in the Excise Rate Maintenance • Pricing in sales and distribution
transaction.
When you create a sales document, the system determines the excise CO internal orders
duties and sales taxes using the pricing procedure (not the tax procedure).
153 154
• Output control (printed confirmations, EDI messages, electronic • Specify the conditions in the sales order that are used for excise
mail) rates.
• Account determination • Specify the countervailing duty condition type used for import
purchase orders.
• Calculating taxes on sales/purchases
• Calculating accruals in Cost Center Accounting
• Pricing for resource planning
B. Maintain Excise Defaults

→ Determination of Excise Duty
Maintain Excise Defaults
In this IMG activity, you define which tax procedure and pricing condition
types are used in calculating excise taxes using formula-based excise
determination.
Activities
If you use condition-based excise determination, fill out the CVD cond.
field and leave all the others blank.
If you use formula-based excise determination, fill out all of the fields as
follows:
• Enter the tax procedure and the pricing conditions that are
relevant for excise tax processing.
• Specify the purchasing and sales conditions types used for basic
excise duty, additional excise duty, special excise duty, and
cess.
155 156
CVD Condition Type A/P

Specifies which condition type you use for countervailing duty on imports
Tax proc. TAXINJ TAXINN Countervailing duty

CVD cond. JCV1 JCV1
Exp tax cd A0 Financial Accounting (FI)
Tax jur.cd 9900
A form of excise duty imposed on imports that are subsidized by the
A/P BED Cond JMO1 JMX1 country in which they were manufactured.
A/P SED Cond JSO1 JSX1
A/P AED Cond JAO1 JAX1 Countervailing duty (also known as CVD) is intended to make the imports
more expensive, thereby redressing any competitive advantage they might
A/R BED Cond JEX2 JEXP have over goods produced locally.
A/R SED Cond JEXS
A/R AED Cond JEXA Export tax code
A/R CESS Cond JCES
BED perc JMOD JMOP Specifies the tax code used for calculating excise duty on nonbonded
exports.
AED perc JAED JAOP
SED perc JSED JSOP
Dependencies
Cess perc JCED
ECS CVD When you create an outgoing excise invoice for a nonbonded export sale,
ECS AP JEX1 you choose Calculate Tax; the system applies the tax code that you have
entered here.
ECS AR JECS
ECS Perc JEC1
Export tax jurisdiction code (Dummy)
ECS Cond JECV
ADC Cond JADC The tax jurisdiction is used for determining the tax rates in the USA. It
AP AT1 Cond JSEP defines to which tax authorities you must pay your taxes. It is always the
city to which the goods are supplied.
AR AT1 Cond JHCS
AT1 Perc JHCS Account payable BED condition type
157 158
Condition Type defined in Tax Procedure TAXINJ for Basic Excise Duty
on Accounts Payable.
CESS Percentage condition
Account payable SED condition type III. Condition-Based Excise

Determination. (TAXINN only)
Account payable AED condition type
A. Define Tax Codes for Purchasing Documents
Condition Type defined in Tax Procedure TAXINJ for Additional Excise
Duty on Accounts Payable. Transaction code FTXP
Account receivable BED condition type Movements → India → Basic Settings
→ condition Based Excise Determination
Condition Type defined in Tax Procedure TAXINJ for Basic Excise Duty Define Tax Code for Purchasing
on Accounts Receivable. Documents
Account receivable SED condition type In this IMG activity, you define a tax code for the purposes of calculating
excise duty when you enter purchasing documents.
Account receivable AED condition type Only carry out this activity if you use condition-based excise determination.
Condition Type defined in Tax Procedure TAXINJ for Additional Excise Activities
Duty on Accounts Receivable.
Create a new tax code, and set the tax code type to V (input tax). Do not
make any other settings for it.
Account receivable CESS condition type

Condition Type defines in Tax Procedure TAXINJ for Cess on Account
Receivable.
BED Percentage condition
AED Percentage condition
SED Percentage condition

159 160
B. Assign Tax Code to Company Codes
→ condition Based Excise
Determination Assign Tax Code to
Company Codes
In this IMG activity, assign the tax code for purchasing documents to the
company codes where it will be used.
Only carry out this activity if you use condition-based excise determination.
Company Code
The company code is an organizational unit within financial accounting.
Sales Tax Code

The tax code represents a tax category which must be taken into
consideration when making a tax return to the tax authorities.
161 162
Tax codes are unique per country. The tax rate calculation rules and Standard settings
further features are stored in a table for each tax code.
The standard system comes with sample settings for the tax calculation
Procedure procedures and pricing procedures.
Use these settings as a basis for your own.

For tax-exempt or non-taxable transactions, you should use tax codes
with a 0 percentage rate if the corresponding transactions are to be
displayed in the tax returns.
C. Classify Condition Types

Movements → India → Basic Settings →
Determination of Excise duty Condition
Based Excise Determination Classify
Condition Types
In this IMG activity, you specify which condition types you use for which
sort of tax. Note that this only applies to condition types that you use with
the new excise determination method.
The system uses this information when you create a document from
another one. For example, when you enter an incoming excise invoice
from a purchase order, or when you create an outgoing excise invoice
from a sales order, the system determines the various excise duties in the
excise invoice using the information that you have entered here.
In addition, when you create a purchasing document, the system only uses
the condition types that you enter here.
• For taxes on purchases, use the condition types contained in the

tax procedure.
• For taxes on sales, use the condition types contained in the

pricing procedures.
163 164
different output types such as order confirmation or delivery note;
in batch determination, between different strategy types.

Condition name for Indian tax conditions
Costing,...)
Specifies the conditions that are allowed for a document and defines the IV. Master Data
Example
A. Maintain Chapter IDS
In this IMG activity, you maintain the chapter IDs and the
Procedures are used, for example, in the following applications:
corresponding descriptions as per the schedules published by the
Central Board of Excise and Customs.
• Pricing in sales and distribution

CO internal orders
Movements → India → Master Data →
Maintain Chapter IDs
• Output control (printed confirmations, EDI messages, electronic

mail)
Definition: chapter ID
• Account determination
• Calculating taxes on sales/purchases
The number given to a material in the schedules of materials published by
• Calculating accruals in Cost Center Accounting the government of India.
• Pricing for resource planning The schedule lists all materials involved in manufacturing, input materials
and output materials alike. It shows how much excise duty is levied on
each material.
Condition Type
Each material in the schedule is assigned its own identification code,
• The condition type is used for different functions. In pricing, for called "chapter ID."
example, the condition type lets you differentiate between
different kinds of discount; in output determination, between Example
165 166
The schedule contains an entry for ceramic roofing tiles, which are liable to
basic excise duty at 16%. The chapter ID associated with these tiles is
6903.10.
Chapter ID
Specifies the material's chapter ID.
Description as per Law Chapter ID

Shows the text of the chapter ID as per the Central Excise Law. Specifies the material's chapter ID.
Unit of Measure for Excise

The Unit of Measure for Excise describes the Unit for which the Excise
rate is defined, under the Chapter, Headings and Sub-headings. This Unit
of Measure for Excise is required to be defined in cases where
Quantity-based taxes are applicable.
Examples
For Chapter ID 7216.10, the Excise duty is Rs. 1000 per ton.
Here the Unit of Measure for Excise will be 'TON'
167 168
Description as per Law
Shows the text of the chapter ID as per the Central Excise Law.
B. Assign Users to Material Master Screen

Sequence for Excise Duty (Standard setting.
Do not change this)

Assign Users to Material Master Screen
Sequence for Excise Duty
In this IMG activity, you customize the material master data so that it
shows the information relating to excise duty.
Standard settings
Country Version India comes with a screen sequence (IN) that shows the
excise duty fields. You have to assign it to each of your users.
Activities
1. Double-click User Screen Reference.

2. Assign all users who need to see the excise duty information to
the screen reference IN.
Example
Name Screen Reference

MISHRA IN
169 170
C. Define form types

In this IMG activity, you define which form types you want to record in the
system. You can only use form tracking for the form types that you enter
here.
Note: As per the Union Budget 2009 Deemed export formalities changed.
No CT1/CT3 now.
Example
• Form type: CT3
• Form description: Concessional tax form
• Status: Receive
171 172
Transaction SPRO system uses the tax classification together with the country key (identifies
where the customer is located) to calculate relevant taxes.
code
Define Form Types
V. Account Determination
A. Define G/L Accounts for Taxes

Transaction code OB40

Movements → India → Account
Determination → Define G/L Accounts
for Taxes
In this IMG activity, you specify which G/L accounts you will use to record
Form Type which taxes.
Concessional Form Type. Requirements
You have set up G/L accounts for each of the processing keys listed
Form Description below.
Form Type Description. Activities
Form is required Assign an account to each of the following posting keys. The accounts for
VS1, VS2, and VS3 are used as clearing accounts during excise invoice
verification.
Tax Classification 4 Customer
• VS1 (basic excise duty)
Definition • VS2 (additional excise duty)
• VS3 (special excise duty)
Indicates whether, during pricing, the system takes into account taxes that • VS5 (sales tax setoff)
relate to the customer (for example, state sales taxes). • MWS (central sales tax)
• MW3 (local sales tax)
The system copies the tax classification from the tax information stored in • ESA (service tax)
the customer master record of the ship-to party. During pricing, the • ESE (service tax expense)
173 174
175 176
The fortnightly CENVAT payment utility picks up the credit side accounts
from the transaction types of GRPO, EWPO, and TR6C for determining
the CENVAT and PLA accounts. There is no separate transaction type for
fortnightly payment.
Example
Excise DC
Account name
TT ind
CENVAT clearing
GRPO CR
account
GRPO CR RG 23 BED account
CENVAT on hold
B. Specify Excise Accounts per Excise GRPO DR
account
Transaction
Excise Transaction Types
IMG menu Logistics – General → Tax on Goods Excise
Movements → India → Account Deiscription
TT
Determination → Specify Excise
Accounts per Excise Transaction 57CM 57F CHALLAN COMPLETION
57FC 57F CHALLAN CAPTURE/CHANGE
In this IMG activity, you specify which excise accounts (for excise duty and
CENVAT) are to be posted to for the various transaction types. Enter all
57NR 57F NON RECEIPT
the accounts that are affected by each transaction type. ARE1 EXPORT PROCESSING UNDER ARE1
If you use subtransaction types, enter the accounts for each ARE3 DEEMED EXPORTS UNDER ARE3
subtransaction type as well. CAGI CAPITAL GOODS ISSUES
Activities CAPE CAPITAL GOODS
CEIV CANCELLATION OF EXCISE INVOICE
Transaction type UTLZ is used for determining accounts only while posting
excise JVs and also if the payment of excise duty has to be done DIEX DIFFERENTIAL EXCISE THROUGH JV
fortnightly.
DLFC GOODS REMOVAL THROUGH SALES
177 178
EWPO EXCISE INVOICE WITHOUT PO
EXCISE INVOICE FOR GOODS
GRPO
RECEIPT / PO
MRDY REVERSAL WITHOUT REFERENCE
REVERSAL IN CASE OF
MRRD CONSUMPTION OTHER THAN
PRODUCT
CENVAT REVERSALS FOR WRITE
MRWO
OFF
EXCISE INVOICE FOR OTHER
OTHR
MOVEMENTS
PLA ACCOUNT ADJUSTMENT
TR6C
THROUGH
UTLZ FORTNIGHTLY PAYMENTS
Excise Transaction Type

Identifies the excise transaction.
Dependencies
The system uses the excise transaction type to determine which G/L
accounts have to be posted to.
179 180
Specifies the subtransaction type.
Debit credit indicator

To Indicate account is Debited or Credited.
Account Name
Account name specifies the name of the account used for different
transactions.
Example RG23ABED
181 182
183 184
For each excise group, assign the excise and CENVAT accounts to G/L
accounts. For most businesses, one set of accounts will suffice for all
transactions.
C. Specify G/L Accounts per Excise Transaction
Transaction code SPRO Note
IMG menu Logistics – General → Tax on Goods You need not remit the CENVAT to the excise department immediately, so
maintain the credit account for transaction type DLFC as an excise duty
Movements → India → Account
interim account. This will be set off when you remit the duty.
Determination → Specify G/L Accounts
per Excise Transaction
In this IMG activity, you assign the excise and CENVAT accounts to G/L
accounts.
When you come to execute the various transactions, the system

determines which G/L accounts to post to by looking at the:
• Excise group
• Company code
• Chart of accounts
Furthermore, if you want separate account determination settings within an

excise group, you can also use sub transaction types.
Requirements
You have already:
• Defined the G/L accounts
• Defined the excise groups
• Maintained the transaction accounts
Activities
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G/L account for RG23A SED
Excise Group G/L Account for RG23A special excise duty.
Specifies the excise group. G/L account for RG23C BED

Excise Transaction Type G/L Account for RG23C basic excise duty.
Identifies the excise transaction. G/L account for RG23C AED

Dependencies G/L Account for RG23C basic excise duty.
The system uses the excise transaction type to determine which G/L G/L account for RG23C SED
G/L Account for RG23C basic excise duty.
Company Code
G/L Account for CENVAT Offset
Records the excise duty calculated at the time of invoice verification. The
Sub Transaction Type values in this account and the CENVAT clearing account are balanced if
there is no difference in the excise amounts at goods receipt and inovice
verification.
Chart of Accounts Use

The values in this account and the CENVAT clearing account are
Key that uniquely identifies a chart of accounts.
compared after invoice verification.
G/L account RG23A BED account Examples

G/L Account for RG23A basic excise duty.
Comparison of CENVAT clearing and offset accounts and the resultant
postings:
G/L account RG23A AED account
• If there is no difference in the amounts compared (say 100)
G/L Account for RG23A additional excise duty.
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Dr. CENVAT clearing acct 100 The Personal Ledger Account (PLA) has the value of funds deposited with
Cr. CENVAT offset acct 100 the Central government into the Bank Account nominated by them. The
funds in the PLA account are used exclusively for the payment of Excise
Duty.
• If amount at invoice receipt (say 110) > amount at GR (say 100)
The funds in either the PLA Account or the RG23A account or the RG23C
Dr. CENVAT plant acct 10
account are used for payment of Excise Duty at Sales Invoicing.
Cr. CENVAT clearing acct 100
Cr. CENVAT offset acct 110
G/L account for PLA AED (Personal Ledger
• If amount at invoice receipt (say 90) < amount at GR (say 100) Account)
Dr. CENVAT clearing acct 100 The Personal Ledger Account (PLA) has the value of funds deposited with
Cr. CENVAT plant acct 10 the Central government into the Bank Account nominated by them. The
Cr. CENVAT offset acct 90 funds in the PLA account are used exclusively for the payment of Excise
Duty.
G/L account for Modvat Clearing The funds in either the PLA Account or the RG23A account or the RG23C
The G/L Account for Modvat Clearing is used to post the Excise amount
(in case of material for which Modvat can be availed) at the time of G/L account for PLA SED (Personal Ledger
Goods Receipt(GR).
Account)
Use The Personal Ledger Account (PLA) has the value of funds deposited with
the Central government into the Bank Account nominated by them. The
The values in the Modvat Clearing Account and the Modvat Offset funds in the PLA account are used exclusively for the payment of Excise
Account are compared after Invoice verification. Duty.
Examples The funds in either the PLA Account or the RG23A account or the RG23C
At GR, the Modvat amount is posted as follows :

G/L account for PLA CESS (Personal Ledger
Modvat Plant A/c. Dr. Account)
To Modvat Clearing A/c.
The Personal Ledger Account (PLA) has the value of funds deposited with
G/L account for PLA BED (Personal Ledger the Central government into the Bank Account nominated by them. The
funds in the PLA account are used exclusively for the payment of Excise
Account) Duty.
189 190
G/L Account for CENVAT Reversal
G/L Account for CENVAT On Hold G/L account for RG23A NCCD
Records any CENVAT that is temporarily not available - and therefore "on G/L account for RG23C NCCD
hold" - until certain conditions are met.
G/L account for PLA NCCD

Examples
Countervailing duty paid on imports is not available for utilization until
G/L account for RG23A ECS
receipt of the goods. On receipt of goods, the relevant duty is to be
transferred to the appropriate CENVAT account of the plant. G/L account for RG23C ECS
G/L Account for CENVAT Suspense G/L account for PLA ECS
Records excise duty from sales documents. The excise duty is
subsequently paid from the CENVAT RG 23A, RG 23 C, or personal G/L account RG23A AT1 account [ used for
ledger accounts. SECS]
G/L account for PLA On Hold G/L Account for RG23A basic excise duty.
General Ledger Account for PLA Suspense G/L account RG23C AT1 account[ used for
SECS]
Use
G/L Account for RG23C basic excise duty.
Cheques deposited, into the PLA Account maintained with the bank, are
posted to this general ledger account initially, pending realisation.
G/L account for PLA AT1 (Personal Ledger
The balance in this account is not available for payment of excise duty Account) [ used for SECS]
on despatches until the intimation of realisation of cheque is received
from the bank. The Personal Ledger Account (PLA) has the value of funds deposited with
the Central government into the Bank Account nominated by them. The
Subsequently, the realised amounts are transferred to the general ledger funds in the PLA account are used exclusively for the payment of Excise
account for PLA maintained for the plant. Duty.
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VI. Business Transactions
A. Incoming Excise Invoices
1. Select Fields Standard setting. Don’t change

Transaction code J1IEX_SFAC

Movements → India → Incoming Excise
Invoices → Select Fields
In this IMG activity, you specify which fields you want in the Incoming
Excise Invoices transaction.
The settings that you make here apply for all versions of the transaction
that you might create.
Activities
For each field, specify whether you want it to be an input field, a display
field, and so on. You can also highlight fields of particular importance.
Only the main table is of interest. You do not need to use the other
functions, such as Influencing or Screen Groups.
Screen group for screen classification

Here you can define a string of up to four characters which is available at
the screen runtime in the SY-DNGR field.
Using this string, you can assign several screens to a common (screen)
group which you can then use to ensure that modifications to all the
screens in the group are consistent.
193 194
Screen groups can be maintained in Table TFAWT. This contains a
language-dependent text for each screen group within a program (module
Indicator: '
Field is highlighted'
pool), which describes the group.
Causes the relevant field to be highlighted.
If you enter a screen group on the attribute screen in the Screen Painter
which does not exist for the current program, the system creates an entry 2. Define Processing Modes Per Transaction
for it in Table TFAWT.
Field Selection: Modifiable Field IMG menu Logistics – General → Tax on Goods
Use Invoices → Define Processing Modes
Per Transaction
The name for a modifiable field must be specified in full. For a Dictionary
field, this means the table name and the actual field name linked with '-'. In this IMG activity, you specify which processing modes the user can use
in the various Incoming Excise Invoice transactions.
Every field name in a screen can be used.
This way, you can tailor the transaction to what your users have to do.
A modifiable Dictionary field must belong to a table whose fields are
permitted for use in field selection. This is done by assigning the table to Standard settings
the corresponding screen group in the field selection transaction.
The system comes with three standard transactions relating to the
Indicator: '
Field is ready for input' Incoming Excise Invoices function (those that are included in the role
SAP_CIN). The processing modes available in these transactions are as
follows:
Specifies that the relevant field is ready for input.
• J1IEX_C
Indicator: '
Field is a required entry'
This transaction is for excise clerks: users of this transaction can
Specifies that the relevant field is a required entry. only capture and display excise invoices.
Indicator: '
Field is displayed' • J1IEX_P
Causes the relevant field to be displayed. This transaction is for excise supervisors: they can change,
display, cancel, and post excise invoices.
Indicator: '
Field is hidden' • J1IEX
Causes the relevant field to be hidden.
195 196
In this transaction, users can capture and post excise invoices, as
well as displaying, changing, and canceling them.
Activities
If the standard settings meet your requirements, do not do anything.
Otherwise, you can adjust the standard settings or you can create your
own transactions. To do so:
1. In Maintain Transaction, create a new transaction by making

a copy of one of the standard transactions. Give the new
transaction a transaction code of your choice.
2. In this activity, enter data as follows:
o Tcode: The transaction code that you have just created.
o Proc. mode: Specify what the users of the transaction Transaction Code
will do with the excise invoices.
A combination of alphabetical and numerical characters forming a code for
o Active: Select this indicator to activate the setting. a business task.
Example Processing Mode

You might want to create a transaction that only allows users to display Controls what you want to do with the excise invoice or ARE document.
excise invoices.
Active
Activates this setting.
Dependencies
If you do not set this indicator, this option will not be available when the
user runs the transaction.
197 198
3. Define Reference Documents Per Transaction

Invoices → Define Reference Documents
Per Transaction
In this IMG activity, you specify for each combination of transaction and
processing mode which reference documents you want the users to be
able to use.
Activities
If the standard settings meet your requirements, you do not have to do

anything.
Otherwise, add the entries that you need to the table: For each
transaction, make one entry per combination of processing mode and
reference document. Activate each entry for it to work.
Transaction Code
a business task.
Processing Mode
Controls what you want to do with the excise invoice or ARE document.
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Definition: ARE document
A document, in India, that accompanies exports and deemed exports. The
documents ensure that you do not have to pay excise duty on these
transactions.
There are two types of ARE documents, ARE-1 and ARE-3. Union Budget
changes – For Deemed export also used the same ARE-1. No more ARE-
3.
Reference Document
Specifies what document type the excise invoice reference document or
the ARE reference document is.
Rejection Code
Definition : ARE reference document Allows you to record why you, for example, rejected or reversed an excise
document. If you reject or reverse the document, enter the reason why
A document, in India, that you refer to when you create an ARE document. here.
You create all AREs using an outgoing excise invoice, which must have Dependencies
the appropriate excise invoice type.
You can define additional codes in Customizing, in Maintain Rejection

4. Maintain Rejection Codes Codes.
Rejection Code Description
Invoices → Maintain Rejection Codes
In this IMG activity, you define the rejection codes that are used in the
Incoming Excise Invoices transaction.
Activities
For each rejection code, enter a code and a description. You can also
specify whether the excise duty in the invoice is to be posted to the
CENVAT on hold account, instead of the CENVAT clearing account.
201 202
5. Specify Which Movement Types Involve
Excise Invoices
Movements → India → Business
Transactions Incoming Excise
Invoices → Specify Which Movement
Types Involve Excise Invoices
In this IMG activity, you specify which movement types relating to goods
receipts involve excise invoices.
The system uses this information during the goods receipt procedure.
When you post a goods receipt using one of the moevement types that
you have specified here, the system prompts you to enter the excise
invoice number.
Note
This option cannot be used for processing goods receipts without

purchase orders.
Movement Type (Inventory Management)

Specifies a key for the type of goods movement. Each goods movement
(for example, purchase order to warehouse) is allocated to a movement
type in the system.
203 204
Definition: goods movement Set the Create Excise Invoice Automatically indicator to No for a
particular combination of Plant and Vendor. In this case,
processing of Excise Invoice takes place manually. You can
Inventory Management (MM-IM) process Excise Invoices using transaction J1IEX.
A physical or logical movement of materials leading to a change in stock

levels or resulting in the consumption of the material. Transaction code SPRO
Register Movements → India → Business
Transactions Incoming Excise
Register RG 23A or RG 23C. Invoices → Excise Invoice Capture
Against Delivery in the Background
6. Excise Invoice Capture against Delivery in the

Background.
Excise Invoice Capture Against Delivery in the

Background
Use this IMG activity to select the method of processing Excise Invoices
for a particular combination of Plant and Vendor, in the Supplier Self
Service system (SRM-SUS).
In the table J_1I_BCKEXCSUS, you can process Excise Invoices using

the following methods:
Account Number of Vendor or Creditor

• Background Processing
Alphanumeric key uniquely identifying the document.
Set the Create Excise Invoice Automatically indicator to Yes for a
particular combination of Plant and Vendor. In this case, the
SRM-SUS system automatically processes the Excise Invoices in Plant
the background.
Key uniquely identifying a plant.
• Manual Processing
205 206
Create Excise Invoice Automatically • Materials Management -> Inventory Management and Physical
Inventory -> Goods Issue / Transfer Postings -> Define Screen
Layout.
Instructs the system to automatically create an outgong excise invoice
immediately you create a commercial invoice or a pro forma invoice.
For the movement type 541, maintain the field Purchase Order as
an optional entry or as a required entry.
The system creates the excise invoice in the background.
• Materials Management -> Inventory Management and Physical

Dependencies Inventory -> Output Determination -> Maintain Output Types.
If you want to make use of this function, you must also define the default Maintain the output type. On the Default Values tab, maintain the
plant, excise group, and series groups in Customizing for Excise Duty, by dispatch time and the transmission medium. Maintain the print
choosing Business Transactions -> Outgoing Excise Invoices -> Maintain parameter on the Print tab. This output type has to be maintained
Default Excise Groups and Series Groups. in this activity here.
B. Sub Contracting • Materials Management -> Inventory Management and Physical

Inventory -> Output Determination -> Assign Forms and
Programs.
1. Subcontracting Attributes
Maintain the Program, FORM routine, and the form for the output
type.
IMG menu Logistics – General → Tax on Goods • Materials Management -> Inventory Management and Physical
Inventory -> Output Determination -> Printer Determination ->
Printer Determination by Plant / Storage Location.
Transactions → Subcontracting
Subcontracting Attributes
Enter the output device that you use.
The subcontracting attributes help determine conditions for a combination

of an excise group, a transaction type, and a subtransaction type.
The conditions such as the number of excise items per subcontracting

challan, if the nonexciseable materials have to be filtered or not when the
subcontracting challan is created, the movement type groups for issues
and receipts and the hierarchy of determining the excise base value are
mentioned here.
Requirements
Before you continue with this activity, work through the following activities:
207 208
Subcontracting Period
The maximum number of days that the materials can be with subcontractor
without you having to reverse the excise on the CENVAT account.
Dependencies
This information is used when you create a subcontracting challan to
determine on exactly which date the materials have to be returned by.
Movement Type group for Issue

The movement types relevant for issue of materials are grouped for a
combination of transaction type and subtransaction type.
Excise Group
Movement Type Group Receipts
Receipt of materials are grouped for a combination of transaction type and
Excise Transaction Type subtransaction type.
Identifies the excise transaction. Filter non-Excisable material
Dependencies This indicator disallows the materials that are not defined under any
Chapter Id onto the challan if it is selected. If it is left empty it allows all the
materials to be part of the subcontracting challan.
The system uses the excise transaction type to determine which G/L
Note: These materials need to be reconciled if they are part of the
subcontracting challan.
Number of Items in Excise Invoice
Shows the maximum number of line items that you are allowed to include
Sub Transaction Type Text in a single outgoing excise invoice.
209 210
Dependencies In this IMG activity, you group movement types together to form
movement type groups.
This information affects the transactions for creating outgoing excise

invoices for factory sales and for other movements.
This information is used to split the transfer postings' items into multiple
subcontracting challans.
Number range number

Identifies a number range interval within an object or subobject.
Procedure
Enter any two-character code.
Base Value based on Assessable value /

Excise invoice
The hierarchy of determining the excise base value from the assessable Movement Type Group
value table or from the excise invoice is dependent on this indicator.
Movement Type Groups will be used to club the movement types based on
Subcontracting Output Type their nature (issues or receipts).
These Groups can be defined individually for each subtransaction type of

J1IF is the output type used for subcontracting challan.
every transaction type.
2. Maintain Movement Type Groups Movement Type (Inventory Management)

Transaction SPRO
code Specifies a key for the type of goods movement. Each goods movement
(for example, purchase order to warehouse) is allocated to a movement
IMG menu Logistics – General → Tax on Goods type in the system.
Transactions Subcontracting Maintain
Movement Type Groups Special Stock Indicator
Specifies the special stock type.
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If you need to separately manage certain stock (for example, The layout description can be left blank or an appropriate description
consignment stock) of a material, the stock type in question is defined maybe filled in. You may not change the register name. You can have your
using this indicator. own layouts and maintain the name here. If the output device and number
of copies are maintained it is automatically picked up for printing.
C. Excise Registers
1. Specify SAPscript Forms
Transaction SPRO
code
Transactions Excise Registers → Specify
SAPscript Forms
In this IMG activity, for each of your company codes, you specify which
SAPscript forms the system prints the excise registers with.
Standard settings
Country Version India includes a number of sample SAPscript forms and

printing programs, which you can use as follows:
Reg. name Lay. no. Form Tcode/Prog

RG 23A Part I 1 J_2IRG23A_PART1 J_2IRAP1
RG 23C Part I 1 J_2IRG23C_PART1 J_2IRCP1 Company Code
RG 23A Part II 1 J_2IRG23A_PART2 J_2IRAP2
RG 23C Part II 1 J_2IRG23C_PART2 J_2IRCP2
PLA 1 J_2I_PLA J_2IPLA
RG 23 D 1 J_2I_RG23D J_2IRG23 Register name
RG 1 1 J_2I_RG1 J_2IRRG1
RT 12 1 J_2I_RT12_ABSTRA J_2IRT12 Layout number
RT 12 1 J_2I_RT12_ABSTRA J_2IRT12
RT 12 1 J_2I_RT12_3 J_2IRT12 Form Name
213 214
Name of a form. The name of a form has a maximum length of 16
characters and can include upper case letters and numeric characters. It
Windows:
must begin with a letter.
Windows represent logical units. Although they do not have a physical
position on the page, they have a name which reflects the purpose of the
A form in SAPscript is used for page layout. The form contains various
text to be displayed in the window. For example, an address window, a
elements, which are used for layout control of the individual pages and
window for a letter header etc.
also contain layout information for texts which are to be output on the
individual pages.
A window type is assigned to every window. The most important type is
the main window. "Continuous" text appears in the main window. The text
To enable text formatting, the appropriate form must be assigned to the
can therefore extend over the main windows of several pages. The other
text. In the SAPscript standard text editor this occurs via a menu selection.
window types, on the other hand, do not allow text which does not fit in the
A list of all the forms available in the system is displayed, from which a
window to be continued in the window on a subsequent page.
form can then be selected by the user.
A form definition contains the following elements: Pages:
Header data: One or more pages which are to appear in the form are defined here. The
attributes of a page include the name of the next page and the type of
page numbering. The user determines the page sequence by specifying
This is general information about the form, such as the user ID of the the next page and defining the first page of the form in the header data.
person who created it, a short text describing the form, and global control
data, such as font used and page format.
Page windows:
Paragraphs: A page window is defined by specifying the position and size of a form
window on a form page. The page window describes the position of a
Paragraphs are the real layout elements in SAPscript. Every text entered window on a specific page of the form and therefore the area in which text
in the editor consists of various paragraphs. The beginning of a paragraph can be output in the form.
is indicated by a paragraph tag in the left column of the editor. Paragraph
names and attributes are defined in the form.
Layout description
Characteristics or attributes which can be defined for paragraphs include
text alignment, line spacing, font used etc.
Character strings:
Character strings are layout elements relevant for a section of text within a
paragraph. They are inserted in the continuous text. The beginning of a
section of text is marked with the character combination <XX> and the end
with </>. Here XX is the name of the character string, which is defined in
the form.
215 216
RG 23C BED account 50
Alternatively, to debit all of the BED to the RG 23A account, and then RG
23C account, if there is not enough in the RG 23A account, you would
make the following settings:
E. Utilization
Acct name BED perc. +
a) Utilization Determination RG 23A BED account X
RG 23C BED account X
When you come to run the report, the system takes the RG 23A account
IMG menu Logistics – General → Tax on Goods because it is the first one you have entered. If this account does not cover
Movements → India → Business the BED, the system takes the RG 23C account
Transactions Utilization → Utilization instead.
Determination
In this IMG activity, you specify which CENVAT accounts are to be debited
by the Fortnight Utilization of CENVAT report: When the report
calculates how much excise duty you must remit, it automatically proposes
which CENVAT accounts the duty should be debited to. Here, you specify
those defaults.
You can either:
• Debit all the excise duty to one account
• Debit the excise duty to more than one account, in which case
you specify which percentage is to be debited to each account
Example
If you want 50% of basic excise duty (BED) to be debited to the RG 23A
account and the remaining 50% to the RG 23C account, you would make
the following settings:
Acct name BED perc.

RG 23A BED account 50
217 218
Excise Group Maintain the minimum balance amount for the excise accounts. If you have
more than one excise group, you can maintain different minimum
balances.
Account Name
Account name specifies the name of the account used for different
transactions.
Example
RG23ABED
BED percentage
Single-Character Indicator
Excise Group
b) Maintain Minimum Balances for Excise
Accounts Specifies the excise group.
Account Name
Movements → India → Business Account name specifies the name of the account used for different
Transactions Utilization → Maintain transactions.
Minimum Balances for Excise
Accounts
Example
In this IMG activity, you can maintain minimum balances in your excise RG23ABED
accounts. When the balance in these accounts during utilization falls
below this level, the system automatically utilizes funds in the PLA
account. Amount in document currency
Activities Line item amount in document currency.
219 220
Procedure Transactions involving Code
Excise invoices J1IA
During document entry, enter the amount manually. In the last line item, Excise JVs J1IH
you can enter a "*" - the amount of the final line item is then the balance of Subcontracting 57F4 J1IF
all the line items previously entered.
Factory sales J1II
Fortnightly payment J1IU
Dependencies
Amounts you enter may be changed automatically by the system if the For example, if you want to create a long text for the Incoming Excise
following postings are made: Invoices transaction, enter J1IA.
Then give the long text an ID and description of your choice.

• Tax adjustments
• Cash discount adjustments during net postings.
VII. Tools
A. Long Texts

Movements → India → Tools Long
Texts
In this IMG activity, you define the different types of long texts that you
want to be able to maintain in the various excise transactions.
There is no limit to the number of types of long texts you can define.
Activities
For each long text, you have to specify which transactions the long texts
are for, so fill out the Object field accordingly:
221 222
• An additional text can, optionally, be specified from the program
application when the text editor is called.
Texts: Application Object

• The language key is the language assigned to the text.
In business applications, a text is not considered an independent object. A

text can only exist if it has a superior reference object. A material B. Number Ranges
inspection text, for example, only exists if there is a corresponding
material. The application object of a text is therefore the global
environment in which a text exists. Transaction code J1I9

Short Text Movements → India → Tools Number
Ranges
Default ID for texts to be included
You can maintain the number ranges for all CIN Number range objects
You can use the INCLUDE command to insert the contents of another text using this transaction
in your text. In order to fully identify the text you wish to insert, it is
necessary to enter a text ID.
Activities
If the ID is not specified with the INCLUDE command, the ID specified

Please maintain the number ranges for the folllowing objects The no nr
here is used, otherwise the ID of the calling text.
has to be '01' for all
Display text name in editor header 1. j_1iintnum
This field defines whether the name of a text is displayed in the header line At an Excise group
of the SAPscript text editor together with other information.
1. j_1irg23a1
<Text type> <Operation>: <Text name> <Text> Language <Key>
2. j_1irg23a2
• The text type is the long text for the text ID, which must be
maintained in Table TTXIT. 3. j_1iRG1
• The operation is defined by calling the text editor or by the 4. j_1irg23c1

momentary workstep within the text editor (Change, Display,
Select, Insert). 5. j_1irg23c2
• The text name can be displayed or suppressed with the field 6. j_1ipla2
TDSHOWNAME in Table TTXID.
223 224
7. j_1iintpr2
8. j_1irg23d
9. j_1irg1_t ( material level)
10. j_1iconpla ( if Consolidated PLA is used )
At Series group
1. j_1iexcloc
2. j_1iexcexp
3. j_1idepinv
4. j_1i57Fc ( 57F Challans )
225 226
227 228
C. Message Control

Movements → India → Tools
Message Control
In this activity, you can specify whether a given message should appear as
a warning message or an error message.
Activities
Enter each message that you want, specifying whether it should apply to
one user or all users.
229 230
Application Area
The indicator denotes the application area to which the error message
belongs.
Procedure
Display the possible input values with F4.
If you want a message to be output, you must specify the message class
indicator in a program as follows:
sundar
<program_name> MESSAGE ID <message_class_ID> $$$$
Message number
Transaction Code
a business task.
User Name in User Master Record
Message Type
Message type (E,I,W,...)
231 232

Beginners Guide To Sap Cin Taxation PDF

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Beginners Guide To Sap Cin Taxation PDF

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Hand Book for SAP Taxation-India Hand Book for SAP Taxation-India

Author : Sundar Krishnan

How cin interfaces with sap sd, mm and fi

At the end of the presentation , each participant

CIN INTERFACE WITH SAP INDIAN LOCALISATION COVERAGE

3) Define Condition Types

a) MM Excise condition types

4) Checking and Changing [Account Key] Settings for

5) Define Tax Accounts

In this activity, you can check and, if necessary, change existing

Calculation procedures containing the necessary specifications for the

Procedure (Pricing, Output Control, Acct. Det.,

• Pricing in sales and distribution

• Applying overhead in Product Costing (costing sheets) and for

• Calculating accrued costs in Profitability Analysis

• Application • Calculating accruals in Cost Center Accounting

• Select the Procedure TAXINJ

TAXINJ PROCEDURE CONTROL

From Ref. Step for Percentage Conditions

40 A-Z1 Vacation bonus 10 30 E11

The surcharge for step 40 is added to the total of steps 10 to 30.

o All condition lines that contain an item larger than POS

• 'X' : Condition line is printed at item level

o 'A' : in total: general Requirement

o 'b' : at item : if value <> zero Definition: message determination

Item Value Volume Discount

It could also be the vehicle license plate country-code or a typical country

d) Activating Country Version India for Specific Procedure

Component in ACC Interface

Use The internal jurisdiction codes are also not transported.

Do not delete or change any taxes on sales/purchases codes and their

Otherwise you can do this manually:

2. Defining /Maintaining Access Sequence

Transaction code OBQ2 / OBYZ

DOUBLE CLICK ON ACCESS SEQUENCES

Double Click on Access Sequences

When we use OBYZ

Caution: The table is cross-client

• the condition tables used to access the condition records

• the sequence of the condition tables

Select the Access Sequence and double click

JTAX – ACCESS SEQUENCE

Access sequence - Access number

For each condition type in a pricing procedure, you define an access

Indicator: Exclusive condition access

JST1 – ACCESS SEQUENCE [FIELD

Field for condition table

Definition: condition record

Sales and Distribution (SD)

The condition record is created or changed with condition record

A condition record can, for example, contain a specific free-goods discount

Message Control (CA-GTF-BS-MC)

Table name of the document structure Dependencies

Table field for document structure Characteristic: Initial value allowed

One of the following:

3. Defining condition Types

Transaction code OBQ1 Condition Type

Condition type Name

Condition Class Description

Calculation type Description

19. JSEI Inp SEcess w/o Cr % 20. JSEP Inp SEcess Cr %

29. JNX1 Inp NCCD Cr Total

• the condition tables used to access the condition records