CIN

IMG SETTINGS :

1.FINANCIAL ACCOUNTING:

Path - F.Accounting > FI Global Settings > Tax on Sales & Purchase >
a) Basic Settings : Please have a look on following nodes ( Please do not
change any settings here as these are general FI Settings)
1. Check Calculation Procedure.
Have a close look in Define procedures. On TAXINJ Control data,
which is the pivotal point for all Indian Tax Calculations
2. Assign Country to Calculation Procedure – Please cross-check that the
TAXINJ is assigned to India
3. Specify Structure of Tax Juridiction Code – (Have a look)
4. Define Tax Jurdictions : If you want to add any separate Tax
Juridiction code, create it in TAXINJ.
5. At node India >
a) Activate Country version for fiscal years – Check the account
interface components are in valid fiscal year period
b)& c) – Settings are done at Logistics General

2. LOGISTICS - GENERAL

Path - Log.General > Tax on Goods Movements > India >

1. BASIC SETTINGS
1. Maintain Excise Registrations :
Create Excise Registration details here. (eg. X) Please indicate the duty
applicability, Options and number of excise line items in excise invoice
2. Maintain Company Code settings :
Create the settings relevant for your company code.
3. Plant settings:
Create your Plant Setting with excise registration (X) you have created, If
your Plant is operating as a Depot, Please give the tick.
4. Maintain Excise Groups :
Create your own excise group for your Plant with the excise registration
(X) already created. Please have a thorough look on the requirement and
set accordingly like creation of EI, settings at MIGO, Automatic posting
etc for your Plant
5. Maintain Series Groups : (Relevant for Outbound deliveries, but
applicable in MM for Subcontracting)
Create Series group for the excise registration (X) created already
6. Maintain Excise Duty Indicators
All possible Indicators are to be maintained like 100% Duty, 50%, etc
 7. Maintain Postal address : Excise related address Management (Not
maintained)
8. Determination of Excise Duty :
a. Define Tax Calculation Procedure
Please see that TAXINJ is assigned to India
b. Maintain Excise Defaults : Check the defaults created in the system.
9. Condition based Excise Determination :
a. Define Tax Code for Purchasing Document - It is basically creation of
Tax Code – FTXP – Create as many Tax codes with the combination of
A/P BED, AED & SED as 100% (It means that we are declaring that the
material is 100% excisable) and respective Tax % for CST/ LST for your
working scenarios. This Tax code we will be attaching in PO for
populating EDs & Taxes.

b. Assign Tax Code to Company code

c. Classify Condition types : No input here.

2. MASTER DATA
a. Maintain Chapter Ids : Maintain the Chapter ID with Excise UOM
b. Assign Users to M master screen sequence for ED – Not used
c. Define Form Types - No Input

3. ACCOUNT DETERMINATION
a. Define G/L Account for Taxes – It is OB 40 We are not using this
because the accounts are assigned during the creation of Tax code in
FTXP
b. Maintain Excise Account per excise transactions – No data entry
c. Specify G/L account per Excise transaction All 256 accounts are to be
entered by FI.

4. BUSINESS TRANSACTIONS
a. Incoming Invoices
1. Select Fields – No Input
2. Define processing modes per transaction – Check the
transaction role and activate accordingly. For Transaction code
J1IEX, activate all.
3. Define Reference document per transaction – No Input here
4. Maintain Rejection Codes – Maintain some rejection codes,
which is used while reversing the transactions
5. Specify Movement types involve Excise Invoices – Enter the
movement types and select the Registers for each combination

b. Outgoing Invoices - (Its mainly for SD)

1. Assign Billing Type to Delivery Types –
2. Maintain default Excise Groups and Series Groups –
 c. Subcontracting
1. Subcontracting Attributes – Enter all relevant subcontracting
attributes here. Please check the Challan type (57FC),
Subcontracting period (Presently it is 180 days), Number of
Excise Invoice line items and Number range
2. Maintain movement type groups – Please check/ enter for the
combination of Movement type group and Movement types
involved in Subcontracting

d. Exports under Excise Regulations - SD Functionality

e. Utilization -
1. Utilization Determination – It is basically fixing the % of
CENVAT accounts are to be debited by the fortnightly
Utilization of CENVAT Report. Please note that the total of
distribution should be 100.
2. Maintain minimum balances for excise accounts – It is not
applicable now.

f. Excise Registers
1. Specify SAP Script Forms – You can specify the Form Layout/
Forms here with the help of ABAP/ Basis.

5. TOOLS
a. Long Texts – Management of Texts on Excise transactions/ screens
b. Number Ranges - All relevant number ranges for each Excise group is
assigned here.
c. Message Control – All messages related to CIN are configured here.

Making Transfer posting for subcontracting - IMG setting

MM > Inventory Management & Physical Inventory > Goods Issue & Transfer Posting >
Define Screen Lay out

In Change view field selection overview, Select Movement type –541 nad mark the
Purchase Order field as an “optional” entry
CREATION OF MATERIAL AND VENDOR MASTER RECORDS

Create the Material which are liable for Excise Duty in normal MM01 transaction

Create Vendors in XK01 and don’t forget to enter the CIN Details of the Vendor by
clicking on the icon ‘CIN Details’ on the Header. You are entering the CST & LST
Numbers, Excise Registration details and Pan Number. But don’t forget to enter Excise
Indicator of the Vendor and click on CENVAT Scheme participant on Excise duty Tab.

MAINTAINING OF MASTER DATA

Transaction Code – J1ID

Basically Excise Mater Data for a Material, Plant & Vendor/ Customer

1. MASTER DATA
1. Chapter ID – Just check the Chapter ID created in IMG setting under
Master Data is appearing here or not.
2. Material and Chapter ID combination - Make the entry for Material and
Chapter ID for your Plant. If you are using this Material for
Subcontracting, give the tick in Subcontracting box. Don’t forget to give
‘X’ mark if the material is declared to Excise at appropriate column.
Please select the proper material type.
3. Material assessable Value – You can fix up the Net Dealer Value and
assessable Value of the Material at a particular Plant
4. CENVAT Determination – Here you are declaring the input and Output
material for a particular Plant. Tick on default Modvat Indicator

2. EXCISE STATUS
1. Vendor Excise Details – Enter your Vendor details created in XK01.
Please don’t forget to put the Excise Indicator and CENVAT determination
tick.
2. Customer Excise Details - SD Functionality
3. SSI Rate – If the Vendor is SSI, enter the SSI status, Excise duty and SSI
rating.
4. Excise Indicator for Plant – Enter the Excise detail of your Plant with
Excise Indicator and Number range group.
5. Excise Indicator for Plant & Vendor – Enter the combination
6. Excise Indicator for Plant and Customer – SD functionality

3. EXCISE RATES
1. Excise Tax Rate – Specify the excise rates for BED, AED & SED along
with Chapter ID and Excise Indicator.
2. Cess Rate – Enter the Cess rate, if existing.
3. Exceptional Material Excise Rate – If the material is having any
exceptional rates, enter here. Please note that this rate will be picked up on
priority, even if you are maintaining another rate in Excise Tax rate.
4. Sales Tax set off percentages – Can enter the data, if applicable.
5. Quantity based AED & SED – If the quantity base AED & SED is
applicable for a material at a Plant in Chapter ID can enter here.
BUSINESS SCENARIOS

1. INTERNAL PROCUREMENT OF RAW MATERIAL

It’s a normal Procurement cycle but with Excise transactions:

Pre-requisite
Customization and creation of Vendor, Material and Maintaining Excise Master
Records in J1ID.

Step 1. Creation of Purchase Order

It’s a normal ME21N activity, but make sure that you have selected GR based
Invoice Verification and a proper Tax Code (Created in FTXP with BED, AED,
SED, CST, etc) in Invoice tab of Item detail. Check and Save the PO and note the
PO Number

Step 2 – Capturing Excise Invoice

Transaction code is – J1IEX. Select the tab of Capture excise invoice. Enter the
Po number. Enter your Excise Invoice Number ad date in respective tabs and
check the BED, AED & SED values and rates in Item Detail, Item and Header
data. Check and Save the Data. Note the Internal Excise Invoice Number. Note
the Excise Invoice number system-generated messages.

Step 3 – Goods Receipt

Do the normal MIGO transaction for that Purchase Order. On allocating the
Storage Location and Flagging the Item OK, Excise Tab is coming in Header and
Item. On Excise tab in Header select Only capture excise Invoice tab and drill
down on Excise Invoice Number and select the Excise Invoice number created in
step 2. Enter the date, check and save the document. Note the material document
Number.

Step 4 – Posting Excise Invoice

It is the same transaction – J1IEX – Select the tab “POST” tab and enter the
internal excise number. No data entry is required. Check the document. Click on
Simulate CENVAT icon and see the posting. If satisfactory, click on “Post
CENVAT” to saving. Note the Accounting document Number and serial Number.
Excise Invoice is posted now. Register RG23A Part I & II are updated

Step 5 – Vendor Invoice Verification

It’s a normal MIRO transaction. Enter the tax amount separately. Simulate and
then Post the Invoice. Check the postings of BED, AED & SED, CENVAT
clearing account and GR/IR clearing account.

Step 6 – Data and Reporting

1. For Checking CENVAT Register – Transaction code – J2I9
2. For Printing Excise Registers – Transaction Code – J2I6 (Any Excise Register
can be printed)
2. PROCUREMENT OF CAPITAL GOODS

The procedure is same, but use an asset material in Purchase Order. The difference is the
duties are posted in RG23C Part I&II. Also note that the credits will be 50% for the
current year and the balance is credited in CENVAT on Hold account.

3. PROCUREMENT - IMPORTS

Pre-Requisite –
1. Create a Vendor as “Customs “ – Normal schema group
2. Create a (Import) Vendor with a separate Vendor Schema(Y) – in customizing
3. Attach the Pur Orgn and Vendor Schema(Y) and assign the IMPORT Pricing
procedure – in Customizing

Step 1 – Creation of Purchase Order

Select the Vendor (Import) for the PO. Enter the data. In Invoice tab, Don’t select GR
based Invoice verification and select a Tax Code – V0. In Conditions tab, In condition
“JCV1” (In CVD) enter the percentage of CVD to be remitted to Customs. Select the
condition go to details and attach the Vendor as Customs. Check and save.

Step 2 – Invoice verification for the CVD

Practically when material is arrived at Customs, they will issue Bill of Lading. This BOL
invoice value in MIRO. Select the PO and select Planned Delivery cost tab. In header
enter the CVD amount and in details tab, check the Invoicing party as Vendor – Customs.
Check and Save the document. See that the amount is posted in CVD/ customs clearing
account

Step 3 – Capturing of excise Invoice for Bill of Entry

Its an ordinary J1IEX transaction. But while entering the PO system will ask for a
commercial invoice number, enter the document number which is created during step2.
Enter the PO number and capture excise Invoice. Please see that the CVD is treated as
ordinary BED. Note the Excise Invoice number.

Step 4 – Posting of Goods Receipt

MIGO transaction w.r.to PO. Enter the Excise Invoice and commercial invoice number .
Check and save the document.

Step 5 – Posting of Excise Invoice

Ordinary J1IEX transaction. Check the data and save the document. Note the Serial
number and Accounting document number.

Step 6 - Invoice Verification

Standard MIRO transaction for Vendor Invoice.
Check the Reports.
4. SUBCONTRACTING WITH ED

Step 1 Create a Subcontracting Order

It is an ordinary ME21N functionality for creating SC Order. See that Components are
attached in CS01 or in PO Materials data itself. Also see that the material is declared as a
subcontracting material in Master Data (Material and Chapter ID combination)
Select Tax code as “V0” and select GR based IV.
In Item conditions, In condition type –JEXC – IN Manual excise %- Enter the excise
percentage and Save the order.

Step 2 – Transfer posting of components

It is also an ordinary MB1B transaction. You can refer the PO and post.

Step 3 – Creation of Excise Invoice

Go to CIN easy access select Sales/ Outbound movements > Excise Invoice > For other
movements > Excise Invoice for other movements ( Transaction code – J1IS)
Select the Reference Document type as “MATD” and enter other data. Also see that It is
refereeing the transfer posting document number. Save the excise Invoice. Note the
Excise Invoice number and FI document number created by system.
You can take the print of this Invoice by transaction code – J1IV

Step 4 – Capture of Excise Invoice

On receipt of material from the Vendor, Capture the Invoice using Transaction code –
J1IEX. Enter the required data and Save the document. Note the document number.

Step 5 – Goods Receipt

It’s the same procedure what we have done in normal domestic procurement. Enter the
required data and Save the document. Note the document number.

Step 6 – Posting the excise invoice

Normal J1IEX function same as that of domestic procurement. Post the Invoice.

Step 7 – Vendor Invoice verification

Ordinary “MIRO” function. Post the Invoice and check all repots.
5. SUBCONTRACTING WITHOUT ED

Step 1 Create a Subcontracting Order

It is an ordinary ME21N functionality for creating SC Order. See that Components are
attached in CS01 or in PO Materials data itself. Also see that the material is declared as a
subcontracting material in Master Data (Material and Chapter ID combination)
Select Tax code as “V0” and select GR based IV.

Step 2 – Transfer posting of components

It is also an ordinary MB1B transaction. You can refer the PO and post.

Step 3 – Creation of Subcontracting Challan -

In CIN role go to creation of subcontracting challan (Transaction Code – J1IF01). The
screen will display the material document number created in transfer posting. Input other
required detail, if nay and save the document. Material will go to subcontractor along
with this challan.

Now the processing is completed and he is supplying the finished product

Step 4 – Goods Receipt

It’s the same procedure what we have done in normal domestic procurement. But after
entering the details, excise tab will appear in header and item details. In header tab select
the option of “Refer Subcontracting challan”. Go to the details icon and enter the
subcontracting challan number created in step 3. Save the GR and note the document
number.

Step 5 – Reconciling the Subcontracting challan Quantity

Transaction code is – J1IFQ. Screen will display the material document of Goods receipt.
Click on reconcile icon, a new screen appears. Enter the assigned quantity at item detail
and save the document.

Step 6 – Completing the Subcontracting Challan

Transaction code – J1IF13. Screen will show the detail of challan with a status “In
process”, check the data and save the document. System will give a message that the
challan is completed
6. STOCK TRANSPORT ORDER
Pre-Requisites :
1. Creation of Customer Master data – Create both the Plants are Customers in
XD01
2. Creation of Vendor Mater data – Create both the Plants are Vendors. For each
Vendor select the other Plant as the Customer (already created in Serial No.1).
3. IMG Settings : In MM > Purchasing > Purchasing Order > Set up Stock
Transport Order > Define Shipping data for Plants.

Select each Plant and enter Customer number of the other plant created in Step1
along with the data of Sales Org, etc.
4. Excise Master Data - In J1ID, see that the material data is entered for both the
Plants.

Process Flow
Step 1 - Creation of Stock Transport Order.
In ME21N, mention the Issuing Plant. Please check the item tab Invoice and see the Tax
juridiction code as IN00. Check and Save the PO.

Step 2 – Transfer Posting

Do the transfer posting in MB1B with proper Plant selection and movement type 351.
Refer the PO and adopt the details. Note the Material document number.

Step 3 – Creation of Excise Invoice

Create Excise Invoice for other movements in J1IS. Select the document type as MATD.
See that the system is automatically creating the Invoice. Note the Excise Invoice
Number and FI document number created by the system.

Step 4 – Posting of Excise Invoice

The Transaction code is J1IV. Save the document and take the print.

Now the Material is reached at 2nd Plant. The activities at that Plants are :

Step 5 – Capturing of Excise Invoice

Its an ordinary J1IEX transaction. Capture the Invoice against the stock Transport Order.
See that Plant 2 is automatically appeared. Enter the required detail and save the
document and note the internal number.

Step 6 – Goods Receipt

It is also an ordinary MIGO transaction. Enter the excise invoice details, save the
document and note the material document number.

Step 7 – Posting the Excise Invoice

J1IED transaction. Select the tab as posting against Vendor Excise Invoice. Input the
required detail. Click on SIMULATE CENVAT and see the postings. If it is OK, Post the
Invoice. Note the serial number and Accounting document number.