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SD Cin PDF
SD Cin PDF
What is CIN?
CIN Means Country India Version
Indirect taxes: Central Excise, Customs, Sales / Vat tax & Service tax
Country Version India comes with functions for calculating, posting, remitting,
and reporting excise duty, and for handling incoming and outgoing excise
invoices.
For these purposes, extra fields are available in the vendor master data and
material master data for information required in India only.
Country Version India offers two ways of calculating excise duty, a condition-
based method and a formula-based method.
You can enter incoming excise invoices in the R/3 System for goods receipts
arising from external procurement, subcontracting, and stock transfer. Excise
clerks can capture incoming excise invoices using a dedicated transaction, or,
alternatively, warehousemen can capture them in the standard Goods
Movement transaction, MIGO, when they enter a goods receipt.
Sales Tax is different from the Excise duty as former is a tax on the act of sale
while the latter is a tax on the act of manufacture or production of goods.
Excise invoice: A business document, in India, that you prepare when you
issue excisable goods from a manufacturing plant, for example: To be sold to a
customer, to be transferred to another of your plants
The excise invoice lists the goods that you have issued and states how much
excise duty applies. Your customer uses the excise invoice to claim back the
excise that it has paid from the excise authorities.
We can capture and post excise invoices in one or two steps, depending on
our business requirements.
In the one-step procedure, the excise clerk captures and posts the incoming
excise invoice simultaneously. The system creates the Part II entry
automatically.
In the two-step procedure, the excise clerk captures the incoming excise
invoice. This means that the clerk enters the data, but the system does not yet
create an entry in Part II of the appropriate excise register. Another user (the
excise supervisor) checks the excise invoice and posts it. The system then
creates a Part II entry.
The excise invoice consists of header data and line items. The header
data comprises:
An internal number, the excise invoice number, the date of the excise invoice
The details of the original vendor who generated the excise invoice, if your
vendor purchased the goods from another vendor and was merely selling
them on to you
At line item level, the excise invoice lists the materials on the excise invoice,
showing the following information:
Chapter ID, Quantity of materials, Excise duty base amount, Rates of excise
duty, Amount of duty paid
Chapter ID:
Each material in the schedule is assigned its own identification code, called
"chapter ID."
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 factory that
manufactures excisable goods is required to register separately.
Excise Range:
Excise Divisions:
Excise Commissionerate:
There are around 90 commissionrates in India, and they are subdivided into
excise divisions, which in turn are divided into excise ranges.
The main type of excise duty in India, It is levied on a wide range of products,
for example, foodstuffs, metals, jeweler, leather goods, and machinery.
The excise registration is liable to additional excise duty. A form of excise duty,
in India, levied on a select range of products, for the most part, textiles.
The excise registration is liable to special excise duty. A form of excise duty in
India on a limited number of goods, mostly luxury goods, including pan
masala, sparkling waters, furs, and yachts.
CESS:
The excise registration is allowed to credit only a portion of its input excise
duty to its CENVAT account.
When you post a goods receipt, the system splits the input excise duty on 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.
This information is also shown when you post the incoming excise invoice.
AT1 is SECONDARY HIGHER EDUCATION CESS, by ticking this tick box you
declare that the unit under this registration ID is liable for SHECESS, other two
tick boxes (AT2 & 3) are reserved for future taxes & additions.
Specifies whether you are allowed to receive more than one delivery per
excise invoice, and if so, whether you can take the CENVAT credit immediately
(Multiple Credits) or have to wait until the delivery has been made in full
(Single Credit).
3. Maintain Excise Groups?
Excise Groups: 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.
We define our excise groups. For each excise group, you can also control how
various excise invoice transactions will work.
Excise Invoice Quantity to Goods Receipt: When you post a goods receipt
using an incoming excise invoice as a reference document, to copy the excise
invoice quantity to the goods receipt.
Part I Entry for Direct Consumption: 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.
We enter a goods receipt for 100 lengths of steel for direct consumption. The
system creates a single material document for the goods receipt and issue.
From this material document it generates two Parts I entries for register RG 23
A, one for the goods receipt and another for the goods issue.
MIGO Settings:
When we 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. When
we save the goods movement, the system automatically saves the excise
invoice,
Series Groups: We define the different excise series groups within our
company. Series groups allow you to maintain multiple number ranges for the
outgoing excise documents.
The slandered system comes with two tax calculation procedures TAXINN is
only support condition based excise determination, whereas TAXINJ supports
condition based excise determination and formula based excise determination.
Both tax procedures contain condition types that cover all of the excise
duties and sales taxes applicable.
When we enter a purchase document or purchase order enter the tax code for
condition based excise determination in each line item, the R/3 system
automatically calculates the applicable excise duties using the condition
records.
Condition based pricing procedure maintain the condition records with
respect to condition type, plant, vendor, material and tax key combination we
will maintain condition records.
We define which tax procedure and pricing condition types are used in
calculating excise taxes using formula-based excise determination.
8. Classifying Tax Conditions in TAXINN?
Condition type:
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.
9. Define process modes per transaction?
In this process we specify which processing modes the user can use in the
various Incoming Excise Invoice transactions.
The system comes with three standard transactions relating to the Incoming
Excise Invoices function
J1IEX_C: This transaction is for excise clerks: users of this transaction can only
capture and display excise invoices.
J1IEX_P: This transaction is for excise supervisors: they can change, display,
cancel, and post excise invoices.
J1IEX: In this transaction, users can capture and post excise invoices, as well
as displaying, changing, and canceling them.
ARE Document:
If you have already posted the goods receipt, you can use the goods receipt
document as the reference document. When you enter the excise invoice in
the system, you specify the number of the original goods receipt: this is the
reference document.
We can active the check box, if you do not set this indicator, this option will
not be available when the user runs the transaction.
We define the rejection codes that are used in the Incoming Excise Invoices
transaction.
Allows you to record why you, for example, rejected or reversed an excise
document.
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.
The system uses this information during the goods receipt procedure. When
you post a goods receipt using one of the movement types that you have
specified here, the system prompts you to enter the excise invoice number.
This option cannot be used for processing goods receipts without purchase
orders.
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.
The movement type enables the system to find predefined posting rules
determining how the accounts of the financial accounting system (stock and
consumption accounts) are to be posted and how the stock fields in the
material master record are to be updated.
The conditions such as the number of excise items per subcontracting challan,
if the non excisable 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.
Excise Transaction Type: Identifies the excise transaction.
The system uses the excise transaction type to determine which G/L accounts
have to be posted to.
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.
The movement types relevant for issue of materials are grouped for a
combination of transaction type and sub transaction type.
Shows the maximum number of line items that you are allowed to include in a
single outgoing excise invoice.
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.
Movement Type Groups will be used to club the movement types based on
their nature (issues or receipts).
These Groups can be defined individually for each sub transaction type of
every transaction type.
15. Excise Registers?
For each of our company codes, we specify which SAP script forms the system
prints the excise registers with.
Country Version India includes a number of sample SAP script forms and
printing programs
16. Number Ranges for Excise Documents? T.
Code: J1I9
We can maintain the number ranges for all CIN Number range objects using
this transaction
J_1IRG1_T : No. Range for RG1 - Excise group / Material (at Material Level),
Each material in the schedule is assigned its own identification code, called
"chapter ID."
If you want to see the details of particular chapter id click on Details icon
18. Specify Excise Accounts per Excise Transaction?
We specify which excise accounts (for excise duty and CENVAT) are to be
posted to for the various transaction types. Enter all the accounts that are
affected by each transaction type.
If we use sub transaction types, enter the accounts for each sub transaction
type as well.
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 fortnightly.
The system uses the excise transaction type to determine which G/L accounts
have to be posted to.
19. Specify Excise GL Accounts per Excise Transaction?
I. Procurement of Stock.
During GR
During GR
Vendor Payable Cr
During GR
RG 23A Part I - Link Stock Register, only Product details and Quantity
details.
In MIGO Transaction itself, you can post Excise by choosing capture and
post Excise Invoice. The FI Document will be as follows.
After doing MIGO, you execute MIRO. In this transaction also SAP will
generate FI document automatically. The Entry will be as follows:
To Vendor A/c Cr
CIN Configuration
Added by Guest, last edited by Somnath Manna on Feb 10, 2010 (view
change)
Sales tax
CIN:
IMG > Logistics - General > Tax on Goods Movement > India > Basic
Settings >
Use
In this IMG activity, you maintain the data relating to your excise
registrations.
Activities
In this activity, you maintain excise registration IDs. You create one ID for
each of your business's excise registrations.
Activities
Which taxes the registration covers (additional excise duty, special excise
duty, and cess) Fields for any taxes that are not covered will be hidden in
transactions involving excise duty.
Every entity with an excise registration number is required to keep its own
excise books.
ECC Number
Every entity with an excise registration number is required to keep its own
excise books.
Excise range: Specifies the excise range in whose area the excise
registration is located.
Excise Division
Specifies the excise division in whose area the excise registration is located.
Excise Collectorate
The code of the excise collectorate in whose area the excise registration is
located.
Additional Excise Duty Percentage. These are leviable under the additional
duties of excise act. These duties are in addition to basic excise duty and
special excise duty.
Example
Shows the maximum number of line items that the authorities allow per
excise invoice.
Dependencies
This information is used when you create an excise invoice in Sales and
Distribution (SD) for factory sales and for other movements.
This information is used to split the transfer postings' items into multiple
subcontracting challans.
Dependencies
When you post a goods receipt, the system splits the input excise duty on
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.
This information is also shown when you post the vendor's excise
invoice.
Use
In this IMG activity, you maintain the data relating to your company codes.
It controls, which document type the system uses when making CENVAT
postings in Financial Accounting (FI). Here ED is document type for cenvat
posting.
Use
This start month represents the month for the start of the excise invoice
number range. The month 04 is entered here indicating April of the calendar
year as the start month for excise invoices. Any change by the Excise
authorities regarding start month should be taken care of by an entry in this
field and initialization.
Excise invoice selection type. To indicate the method opted by the company
for selecting the excise invoice. It can be either earliest or latest invoices that
were received.
Example
invoice selection will show the related invoices only for the
This indicator is to be used for deciding whether Item level excise duty
amount rounding off is required during procurement cycle. If marked 'X' then
the excise duty amount will be rounded off to the nearest rupee at the
Purchase order level. This will not round off the CENVAT credit to be taken. If
the duty amount is less than one rupee then no rounding is done
You can round off the Excise amount to be paid during an outgoing Excise
invoice by marking this indicator as 'X'. The rounding is done at the item level
for each item where the amount is greater than 1 Rupee.
Instructs the system, when you verify a goods receipt for capital goods, to
immediately post half of the input excise duty to the appropriate CENVAT
accounts.
The rest is posted the CENVAT on hold account, for use in the following
year.
Specifies which G/L account the system credits when you take a CENVAT
credit on countervailing duty in the Incoming Excise Invoices transaction.
Use
You enter the exchange rate type to store different exchange rates.
Example
You can use the exchange rate type to define a buying rate, selling rate, or
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.
Exchange rate type to be used for Export excise duty converts
When you are creating an Excise invoice for export sales then the exchange
rate for duty calculation will be picked up using this Exchange rate type.
Use
In this IMG activity, you maintain excise information relating to your plants.
Plant Settings
Activities
You can assign the same ID to more than one plant, if required.
Depot
Dependencies
Use
In this IMG activity, you define your excise groups. For each excise group,
you can also control how various excise invoice transactions will work.
Excise Groups
In this activity, you define excise groups. An excise group allows you to
maintain a separate set of excise registers and excise accounts. The RG 23A,
RG 23C and PLA serial numbers are created for an excise group.
Recommendation
If your company has only one set of excise registers, then you need to
maintain only one excise group.
Activities
1. Create one excise group for each set of registers that you need to keep.
3. If you receive only one consignment for an Excise challan then you can
leave GR's per EI as blank. If you receive multiple GR's for a given Excise
challan and would like to avail multiple credit mark the GRs per EI as 'Multiple
GR's for one excise invoice, multiple credit'. Alternatively if you want to avail
the credit only after all the goods receipts have been made mark it as '
Multiple GR for one excise invoice, single credit'.
5. During depot sales if you do not want to do RG23D selection and posting
separately and would like to complete RG23D selection in one step mark the
indicator 'RG23D Auto post'. This will post the selected records into RG23D
automatically. You cannot cancel the selection later.
6. If the indicator 'Default GR qty' is marked system will default the Excise
challan quantity on to the Goods receipt if the Excise invoice number is given
in the pop-up.
8. 'Automatic posting' when ticked will post the Excise invoice other
movements automatically along with creation in single step.
9. 'Create Part1 for Block Stock' when marked will create a Part1 during the
receipt of material into Blocked stock.
10. 'Create Part1 for STO' when marked will create a Part1 during the
receipt of material through inter plant transfers.
11. 'Create Part1 for consumption stock' when marked will create a Part1
during the receipt of material into consumption stock.
Excise Group
Dependencies
Then, in transactions involving excise duty, for example, when you post a
vendor's excise invoice, you specify which excise group you are using. This
information tells the system which G/L accounts to post the excise to.
At the end of the period, when you come to prepare your excise registers,
you create different sets for each excise group.
Dependencies
Dependencies
If you want to make use of this function, you must also define the default
plant, excise group, and series groups in Customizing for Sales and
Distribution (SD), by choosing Excise Group - Series Group Determination.
If you need automatic posting of RG23D selection then the Post Goods Issue
should have been completed before running RG23D selection.
If this indicator is ticked then while doing Goods Receipt using 'MB01'
system will default the excise invoice quantity on to the Goods receipt
document.
Posting
If this indicator is marked then while creating Excise invoice for other
movements system automatically does the Verify and Post. You need not
separately Post the excise invoice
Blocked stock
Stock transport order
Consignment stock
Use
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
? If the CENVAT has to be paid immediately and you need not wait for the
Fort nightly payment then mark the 'Immediate Utilization' indicator.
Example
You could define two series groups, group 001 for excise invoices, and
group 002 for 57 F4 documents.
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.
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 postings.
Immediate Utilization of CENVAT
Specifies that when you create an excise invoice, the system immediately
pays the amount from CENVAT and creates the Part II entry. Such invoices will
not be listed for fortnightly utilization.
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.
Use
IMG > Logistics - General > Tax On Goods Movement > India > Basic
Settings > Determination of Excise Duty >
Use
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.
Use
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.
? Specify the conditions in the sales order that are used for excise rates.
? Specify the countervailing duty condition type used for import purchase
orders.
See also
SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India ->
Materials Management (MM) -> Condition-Based Excise Determination and ->
Formula-Based Excise Determination.
IMG > Logistics - General > Tax On Goods Movement > India > Basic
Settings > Determination of Excise Duty >
Use
When you enter a purchasing document, for example, a purchase order, the
R/3 System automatically calculates the applicable excise duties using the
condition technique.
Features
The standard system comes with two tax calculation procedures. TAXINN is
only supports condition-based excise determination, whereas TAXINJ supports
condition-based excise determination and formula-based excise
determination. Both tax procedures contain condition types that cover all of
the excise duties and sales taxes applicable.
Since the exact rates of excise duty can vary on a large number of factors,
such as which vendor you purchase a material from, or which chapter ID the
vendor stocks the material under, you create condition records for every sort
of excise duty.
When you come to enter a purchasing document, the system applies the
excise duty at the rates you have entered in the condition records.
Activities
Customizing
These activities include one activity where you define a tax code for
condition-based excise determination.
Master Data
Create condition records for all excise duties that apply, and enter the tax
code for condition-based excise determination in each.
Day-to-Day Activities
When you enter a purchase order or other purchasing document, enter the
tax code for condition-based excise determination in each line item. The
system then calculates the excise duties using the condition records you have
created.
When the ordered materials arrive, you post the goods receipt and the
excise invoice. The system posts the excise duty to the appropriate accounts
for deductible input taxes when you enter the excise invoice.
2. Enter the condition type that you want to create a condition record for
and choose .
3. Select the combination of objects that you want to create the condition
record for.
So, for example, to create a condition record for a tax that applies to a
combination of country, plant, and chapter ID, select Country/Plant/Control
Code.
4. Choose .
In the Tax Code field, enter the dummy tax code that you have defined.
Use
Prerequisites
In order for the system to be able to determine which rate of excise duty to
apply, you must have maintained all the data on the Excise Rate Maintenance
screen, which you can Master Data?access from the SAP Easy Access screen
by choosing Indirect Taxes Excise Rate Maintenance.?
You assign each of your plants an excise duty indicator. You can use the
same indicator for all the plants with the same excise status from a legal point
of view, such as all those that are in an exempt zone.
See also the information about manufacturers that are only entitled to
deduct a certain portion of the duty (see Partial CENVAT Credit).
For each of your vendors with the same excise status from a legal
perspective, you define an excise duty indicator. You must also specify the
vendor type - for example, whether the vendor is a manufacturer, a depot, or
a first-stage dealer. You must also stipulate if the vendor qualifies as a small-
scale industry.
For each permutation of plant indicator and vendor indicator, you then
create a final excise duty indicator.
Similarly, you assign the same excise duty indicator to each of your
customers that share the same legal excise status.
Again, for each permutation of plant indicator and customer indicator, you
then create a final excise duty indicator.
For every chapter ID and final excise duty indicator, you maintain the rate
of excise duty.
If your business only qualifies for partial CENVAT credit, you must customize
your system accordingly.
Activities
2. Looks up the plant master data to see what status you have assigned the
plant.
3. The system looks up the table under Excise Indicator for Plant and
Customer to see what the final excise duty indictor is for customer status 3
and plant status 2: It is 7.
4. The system determines the chapter ID of the ball bearing for the plant.
Let's assume the chapter ID at plant for the ball bearings is 1000.01.
5. Finally, the system looks up the table under Excise Tax Rate to see what
rate of duty applies to chapter ID 1000.01 under status 7.
Use : In this IMG activity, you define a tax code for the purposes of
calculating excise duty when you enter purchasing documents.
Only carry out this activity if you use condition-based excise determination.
Activities: Create a new tax code, and set the tax code type to V (input tax).
Do not make any other settings for it.
Use
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.
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.
Standard settings
The standard system comes with sample settings for the tax calculation
procedures and pricing procedures.
IMG > Logistics - General > Tax On Goods Movement > India > Account
Determination
Use
In this IMG activity, you specify which G/L accounts you will use to record
which taxes.
Requirements
You have set up G/L accounts for each of the processing keys listed below.
Activities
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.
Use
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 the
accounts that are affected by each transaction type.
If you use subtransaction types, enter the accounts for each subtransaction
type as well.
Activities
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 fortnightly.
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
Use
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
Requirements
Activities
For each excise group, assign the excise and CENVAT accounts to G/L
accounts. For most businesses, one set of accounts will suffice for
alltransactions.
Note
You need not remit the CENVAT to the excise department immediately, so
maintain the credit account for transaction type DLFC as an excise duty
interim account. This will be set off when you remit the duty.
Config setting needed to be done in order to get the Excise Details Screen
in Material Master.
2. Select your screen sequence. Usually it would be 21. Select the same and
click on Data Screen in the left frame.
3. Once the data screens are exhibited, select data screen no. 15, ie. SSq.
21and Scrn 15, which is "Foreign Trade: Import Data". Select the same and
click on Subscreens in the left frame.
4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select the
same. Click on tab view subscreen and ensure that the subscreen is blank.
5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 - 0001 and
instead add SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.
Action
J1I2
J1I3
J1I5
J1IEX
J1IEX_C
J1IEX_P
J1IF01
J1IF11
Change a subcontracting challan
J1IF12
J1IF13
J1IFQ
J1IFR
J1IH
J1IIN
J1IJ
J1INJV
J1IQ
J1IR
J1IS
J1IU
J1IW
J1IX
J2I8
J2I9
J1IG
J1IGA
J2I5
J2I6