Central Excise and Sales Tax

1
CENTRAL EXCISE AND SALES TAX
MM Consultant
SD Consultant
FI Consultant Job-Creation of Accounts and assignment of accounts
Central Excise is an Indirect Tax
This will be levied at the time of sales (removal of goods)
Central Excise Registration Plant wise
Central Excise Registration -15 digits code (10 digits PAN+5 digits
Central Excise No.)
Central Excise Rates are given in Central Excise Tariff-
In Central Excise Tariff we have Chapter IDs-8 digits code-

Under Chapter ID material description and rate
Excise duties are classified into 3 categories

a) Basic excise duty (BED) : most of the products come under this
category - now the Maximum rate is 12.50% and the Minimum
rate is 6%.
b) Special Excise duty(SED): Tobacco related products—8% ON
BED
c) Additional Excise duty(AED): again limited products like
TEXTILES-15% on Base amount-Now no AED.
d) Education Cess (ED cess) 2% and Secondary and Higher
Education cess (SHEC) 1%-Total 3%-Now No ED and SHEC
(Finance Budget 2015)
1) CENVAT (Central Excise Value Added Tax): (Earlier MODVAT)
When we pay Excise Duty at the time of purchase, the Excise Amount
can be adjusted when we pay Excise Duty on Sales to Excise
Department (Though collected from customer)
2
2) RG23A-Excise Duty on consumables-100% Cenvat can be adjusted in

the same year
RG23A –Part I- Quantity Updation

RG23A—Part II-Value Updation
3) RG23C-Excise Duty on Capital Goods-50% Cenvat can be adjusted in

the current year and 50% Cenvat in the next year
RG23C–Part I- Quantity Updation

RG23C—Part II-Value Updation
4)PLA-Personal Ledger Account-Bank Excise credits and debits
5)ER1-Excise Return 1-(Earlier it was RT12)-Monthly Return

To pay Excise before 5th of Next Month
To file Return before 10th of Next Month
6)RG1- Finished Goods Register
PURCHASE SCENARIO:
CONSUMABLES CAPITAL GOODS
PURCHASE PURCHASE(Machinery)
BASIC PRICE 100.00 200
EXCISE 8% 8.00 10% 20
108.00 220
VAT 5% 5.40 11
113.40 231
Consumables Purchases:
a)In case of goods receipt- 2 entries will be posted
i)Inventory Rm Dr 100
To GR/IR clearing a/c 100
ii)RG23A BED a/c Dr 8
To Cenvat Clearing a/c 8
3
b)Invoice verification
GR/IR clearing dr 100
Cenvat clearing a/c dr 8
Vat receivable a/c dr 5.40
To party 113.40
Capital Goods Purchases:

a)In case of goods receipt- 2 entries will be posted
i)Capital Work inprogress Dr 200
To GR/IR clearing a/c 200
ii)RG23C BED a/c Dr 10

Cenvat on Hold Dr 10
To Cenvat Clearing a/c 20
b)Invoice verification
GR/IR clearing dr 200
Cenvat clearing a/c dr 20
Vat receivable a/c dr 11
To party 231
SALES SCENARIO:
BASIC PRICE 1000.00
EXCISE RATE
(10%) 100.00
1100.00
VAT (14.5%) 159.50
1259.50
1.In case of sales

Customer a/c dr 1259.50
To Sales 1000.00
To Cenvat suspense a/c 100.00
To Vat payable a/c 159.50
2.In case of excise invoice creation

Cenvat suspense a/c dr 100
To Excise duty payable a/c 100
3.PLA deposit:
4
i) In case of PLA deposit entry by accounts-
PLA on hold account dr 500

To bank 500
ii)Once PLA payment challan is given by excise dept to accounts-
PLA account Dr 500

To PLA on hold account 500
4.Adjustment of Excise payable against rg23a/rg23c and pla

Excise Duty payable a/c dr 100
To RG23A BED 8
To RG23C BED 10
To PLA 82
5.Sales Tax payment to Department
Vat Payable a/c dr 159.50
To Vat Receivable 16.40
To Bank 143.10
The standard system comes with two tax calculation procedures.
1. TAXINN – Condition Based
2. TAXINJ – Formula Based
Client 000- We have both procedures-
For New implementations SAP suggests to go for TAXINN-
MATERIAL MANAGEMENT:
1.ACTIVATE COUNTRY VERSION INDIA FOR SPECIFIC YEARS:
SPRO> FINANCIAL ACCOUNTING> FINANCIAL ACCOUNTING GLOBAL

SETTINGS> TAX ON SALES & PURCHASES> BASIC SETTINGS>INDIA>
ACTIVATE COUNTRY VERSION INDIA FOR SPECIFIC FISCAL YEARS
SELECT POSITION BUTTON

Select Component IND-Enter
FOR IND, FOR TO YEAR: 2999
5
SELECT ACTIVATE CHECK BOX
SAVE
2.CHECK AND CHANGE SETTINGS FOR TAX PROCESSING

SETTINGS> TAX ON SALES & PURCHASES> BASIC SETTINGS>CHECK
AND CHANGE SETTINGS FOR TAX PROCESSING (OBCN)
SELECT NEW ENTRIES BUTTON
PROCESS:X1
DESCRIPTION: A/P EXCISE BASIC
TAX TYPE: 2 INPUT TAX
POSTING INDI: 2 SEPARATE LINE ITEM
SELECT NEXT ENTRY BUTTON
PROCESS: X2
DESCRIPTION: A/P CST
POSTING INDI: 3DISTRIBUTE TO RELEVANT EXPENSE/REV ITEMS
PROCESS: X3
DESCRIPTION: A/P VAT
PROCESS: X5
DESCRIPTION: A/R CST
TAX TYPE: 1 OUTPUT TAX
PROCESS: X6
DESCRIPTION: A/R VAT
TAX TYPE: 1 OUTPUT TAX
6

SAVE
SAVE IN YOUR REQUEST
3.DEFINE CONDITION TYPES

CALCULATION PROCEDURE
DOUBLE CLICK ON DEFINE CONDITION TYPES

i) CONDITION TYPE: XYZ1-A/P EXCISE BED

ACC SEQ: JTAX
COND CLASS: D -TAXES
CAL TYPE: A-PERCENTAGE
COND CATEGORY: D-TAX
SELECT ITEM CONDITION CHECK BOX
CONDITION TYPE: XYZ2-A/P CST

ACC SEQ: JST1
COND CATEGORY: -D TAX
CONDITION TYPE:XYZ3-A/P VAT
ACC SEQ: JST1
COND CATEGORY: D TAX
SAVE
4.CREATION OF TAX PROCEDURE

7

CALCULATION PROCEDURE
DOUBLE CLICK ON DEFINE PROCEDURES
SELECT NEW ENTRIES BUTTON-TAX PROCEDURE-TAXINN-SALES TAX
INDIA
SAVE
SELECT TAXINN
DOUBLE CLICK ON CONTROL DATA FOLDER
Fro STAT PRINT Base
Step Ctype Description m TO type AcctKey
100BASB Base Amount 362
110 Calculated Cell 100 X
X
120XYZ1 A/P Excise BED 100 X1
150 BASIC+EXCISE 110 140 X
160XYZ2 A/P CST 150 X X2
170XYZ3 A/P VAT 150 X X3
200 X
BASIC+EXC+ST 150190
SAVE
5.ASSIGN COUNTRY TO CALCULATION PROCEDURE:

SETTINGS> TAX ON SALES & PURCHASES> BASIC SETTINGS>ASSIGN
COUNTRY TO CALCULATION PROCEDURE
FOR COUNTRY IN: ASSIGN TAX PROCEDURE TAXINN

SAVE
6.CREATION OF TAX CODES

SETTINGS> TAX ON SALES & PURCHASES> CALCULATION<DEFINE
TAX CODES FOR SALES AND PURCHASES
8
(FTXP)
COUNTRY IN ENTER
TAX CODE V0-ENTER
0% input tax-ENTER
SAVE
TAX CODE V1-ENTER
DUMMY TAX CODE FOR INPUT TAX-ENTER

SAVE
TAX CODE A0- ENTER

0% Output tax –ENTER
SAVE
TAX CODE A1-ENTER

Dummy tax code for OUTPUT TAX-ENTER
SAVE
7.CREATION OF GL ACCOUNTS-FS00
200156-RG23A BED-COPY 200155 VAT RECEIVABLE

200157-RG23C BED— --DO--
200158-CENVAT ON HOLD---DO--
200159-PLA ACCOUNT -DO--
200162-PLA ON HOLD ACCOUNT -DO--
200155-VAT RECEIVABLE –ALREADY CREATED
100521-CENVAT CLEARING—COPY 100505 VAT PAYABLE
100522—CENVAT SUSPENSE A/C—DO--
100523—EXCISE DUTY PAYABLE A/C—DO--
100505-VAT PAYABLE—CREATED
100524-CST PAYABLE—DO--
8.ASSIGNMENT OF ACCOUNTS FOR AUTOMATIC POSTINGS

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SETTINGS> TAX ON SALES & PURCHASES> POSTING> DEFINE TAX
ACCOUNTS (OB40)
DOUBLE CLICK ON X1- CHART OF ACCOUNTS-XYZ
ENTER
SAVE BUTTON
SELECT POSTING KEY BUTTON

DEBIT-40
CREDIT -50
SAVE-SAVE IN YOUR REQUEST
SELECT ACCOUNTS BUTTON

100521-CENVAT CLEARING
SAVE
SELECT BACK ARROW
DOUBLE CLICK ON X3-

SELECT SAVE BUTTON
DEBIT-40
CREDIT -50
SELECT BACK ARROW

FOR X3: - 200155-VAT RECEIVABLE
SELECT BACK ARROW
DOUBLE CLICK ON X5-

SELECT SAVE BUTTON
DEBIT-40
CREDIT -50
10
FOR X5: - 100524-CST PAYABLE

SELECT BACK ARROW
DOUBLE CLICK ON X6
SELECT SAVE BUTTON
DEBIT-40
CREDIT -50
FOR X6: - 100505-VAT PAYABLE
SAVE-
9.Creation of Capital goods Material Master-mm01
Material-XYZCAP
Industry sector: Mechanical Engineering
Material Type:select non-valuated
enter
Select basic data 1,purchasing and General Plant data/storage 1
Enter
Plant:XYZP
Storage Location : Hyd Enter
Description: Capital Goods
Unit of Measurement:EA (EACH)

Material Group: XYZC
Select purchasing tab-
Purchasing Group XYZ
save
10.Creation of Capital work in progress-asset master-as01-
Asset Class: XYZ4000

Company code:XYZ
ENTER
11
Description: CWIP-GENERAL
Give details like Capitalization date, Cost Center:Dept A and
Depreciation 0000-No Depreciation and No interest
Save
Created Asset master 500002-0 CWIP GENERAL

11.Go To G/L master change –FS00
Give G/L Account No. 200025-Capital Work In Progress

Select Change button
Select Control Data Tab
Tax category * (all tax types allowed) and select posting without tax
allowed check box
Select save button
12. Also create 100519-gr/ir Clearing account capital goods-copy

100520 and create- fs00
13.Assignment of Accounts for Automatic postings-obyc
For wrx-gr/ir clearing

For chart of accounts-XYZ
Valuation modifier:X
Valuation class-Keep it blank
Account: 100519
SAVE
14 (i) TO MAKE ASSET NUMBER/SUBNUMBER, EARMARKED FUNDS AND

FUNCTIONAL AREA AND FUND CENTER OPTIONAL ENTRY FIELD IN
FIELD STATUS GROUP G067 –OBC4
Select field status variant:XYZ

Double click on Field Status groups folder
Double click G067-reconciliation accounts
Double click on Additional Account Assignments
12
Select optional entry radio button for Earmarked Funds, Functional Area
and Fund Center
Select next group button 3 times
Select Asset number/subnumber as optional entry radio button
Save
14 (ii) TO MAKE ASSET SUBNUMBER, FUNDS CENTER AND

FUNCTIONAL AREA OPTIONAL ENTRY FIELD in Account Assignment
categories-
SPRO->Materials Management->Purchasing->Account Assignment->

Maintain Account Assignment Categories
Select Account Assignment category A-Asset Sub-number optional entry

radio button
Select next page button-
Select Functional Area optional, Funds Center optional

SAVE
15. MAINTAIN EXCISE REGISTRATIONS:
SPRO> Logistics General/Tax on Goods Movements/India/Basic

Settings/Maintain Excise Registrations
Every factory that manufactures excisable goods is required to register
separately, so that a business with seven factories requires seven
registrations.
Select new entries button
Excise REG ID 600
ECC No. (Excise
Control Code) 600
Excise Reg. AAACG8608VXM600
Excise Range BALANAGAR
Excise Division HYDERABAD
Commissionerate HYDERABAD
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Duty Applicability
 Deselect on Liable for AED
 Deselect on Liable to CESS
Options
Partial Credit - Tick
EI items :999
SAVE
16.Maintain Company code settings:
SPRO> Logistics General/Tax on Goods Movement/India/Basic

Settings/Maintain Company Code Settings
In this IMG activity, you maintain the data relating to your company
codes.
Company code: XYZ

Cenvat document type:SA
Utilization Fi document type: SA
Select debit account override
Select auto adjustment indicator
Select immediate credit on capital goods
First Month-select april
Excise invoice selection days: 30
No of excise invoice selection: 999
EI selection procedure: fifo
save
17.Maintain Plant settings:

Settings/Maintain Plant Settings
Select New entries button
Plant: XYZP
Excise registration No.600
GRs per Excise Invoice: Multiple goods receipts, multiple credits
SAVE
18.Maintain Excise groups:

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Settings/Maintain Excise Group
Excise Group: 40
Plant: XYZP
Description: EXCISE GROUP FOR XYZ
Excise Regn No. 600
No. GRS per Excise Invoice: Multiple goods receipts, multiple credits
select EI Capture check box
select post excise invoice in MIGO check box
select duty different at GR check box
save
19.Maintain Series Group:

SPRO>Logistics General/Tax on Goods Movement/India/Basic
Settings/Maintain Series Group
Series
Group Series Dues Exc Reg.
40 SERIES GROUP FOR XYZ 600
SAVE
20.Maintain Excise Indicators
SPRO>Logistics General/Tax on Goods Movements/India/Basic

Settings/Excise Duty Indicators
Exc.
Ind +
100%
1 TAX
2 50% TAX
NIL
3 DUTY
save
21.Maintain Excise Defaults

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SPRO>Logistics General/Tax on Goods Movement/India/Basic

Settings/Determination of Excise Duty/Maintain Excise Defaults
CV A/P A/P A/ AE
D SED AED R BED D SED
Tax. Co Exp A/P BEDCON CON A/R SE A/R A/R PERC PE PER CESS
Proc nd. TaxCd COND D D BED D AED CESS EN RC C PERC
TAXINN XYZ1 XYZA XYZ4
SAVE
22.Maintain Chapter IDs

SPRO>Logistics General/Tax on Goods Movement/India/Master
Data/Maintain Chapter ID’s
UOM excise-Kg,Desc as per law INGOTS

72181310
72221310 UOM excise-Kg, Desc as per law- STEEL BARS

72000310 UOM excise-EA, Desc as per law- MACHINERY
SAVE
SAVE IN WORKBENCH REQUEST
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23.Specify GL Accounts per excise transaction:
SPRO> Logistics General/Tax on Goods Movements/India/Account

Determination/ Special GL Accounts Per Excise Transactions:
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FOR EXCISE TRANSACTION DLFC CHANGE RG23A BED AND RG23C BED
ACCOUNTS TO 100523-EXCISE DUTY PAYABLE
24.Assign Billing Types to Delivery Types
SPRO<Logistics General/Tax on Goods Movement/India/Business

Transactions/Outgoing Excise Invoice/Assign Billing Types to Delivery Types
Billing
DllTy Type
LF F2
NL JEX
25 .Specify SAP script Forms

SPROLogistics – GeneralTax on Goods MovementsIndia
Business Transactions Excise Registers  Specify SAP script Forms
SELECT ALL FORMS FOR IN01
COPY TO COMPANY CODE XYZ
SAVE
26.Number Ranges
SPROLogistics – GeneralTax on Goods MovementsIndia Tools
 Number Ranges
OBJECT Long Text
J_1IINTNUM—Internally document no. to be generated
Select Number ranges button
Select interval button
No.range-01
Year 2017
From Number 1
To Number 100000
Save-Ignore the warning message and press enter

18

No.range-01
Year 2016
From Number 1
To Number 100000
Select back arrow 2 times
J_1IRG23A1-rg23a part 1 updation

Excise group:40
Select intervals button
No.range-01
Year 2017
From Number 100001
To Number 200000

No.range-01
Year 2016
From Number 100001
To Number 200000
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J_1IRG23A2-rg23a part 2 updation

Excise group:40
Select change intervals button
No.range-01
Year 2017
From Number 200001
To Number 300000
No.range-01
Year 2016
From Number 200001
To Number 300000

J_1IRG23C1-rg23C part 1 updation
Excise group:40
Select intervals button
No.range-01
Year 2017
From Number 300001
20
To Number 400000
No.range-01
Year 2017
From Number 300001
To Number 400000

J_1IRG23C2-rg23C part 2 updation
Excise group:40
No.range-01
Year 2017
From Number 400001
To Number 500000
No.range-01
Year 2017
From Number 400001
To Number 500000
21

J_1IPLA2-PLA updation
Excise group:40
No.range-01
Year 2017
From Number 500001
To Number 600000

No.range-01
Year 2016
From Number 500001
To Number 600000
FOR SALES:
J_1iexcloc-local excise invoice no. range
Series group:40
No.range-01
22
Year 2017
From Number 600001 To Number 700000
No.range-01
Year 2016
From Number 600001 To Number 700000

J_1iintpr2—despatch serial number
Excise group:40
No.range-01
Year 2017
From Number 700001
To Number 800000
No.range-01
Year 2017
From Number 700001
To Number 800000
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27.Excise Rate Maintenance

Use Transaction code: j1iln
Indirect Taxes> Master Data> Excise Rate Maintenance
Transaction. Code  J1ID
Select material and chapter id combination
Select maintain button
Material-XYZRM1
PLANT:XYZP
Chapter ID: 72181310
Material type: RAW MATERIALS
GR X Ref:Multiple goods receipts, multiple credits
Declared: x
Declaration date:28.02.2017
Material-XYZFG
PLANT:XYZP
Material type: RG1
Declared: x
Material-XYZCAP
PLANT:XYZP
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Material type: select assets

Declared: x
save
Select back arrow:
Select cenvat determination radio button
Plant:XYZP
Input Material: XYZRM1
Output Material:XYZFG
Intimation date:28.02.2017
Plant:XYZP
Input Material: XYZCAP
Output Material:
Intimation date:28.02.2017
save
select back arrow
Select vendor excise details radio button
Vendor No. 2300101-XYZ MM VENDOR
Enter ECCNo/Excise Regn No/range/division/Commissionerate of vendor
Excise indicator for vendor :1 (100% tax)
Type of Vendor: manufacturer
Save
Select back arrow
25
Select customer excise details radio button

Customer No.2500101 XYZ SD CUSTOMER
Enter ECCNo /Excise Regn No/range/division/Commissionerate of
customer
Excise indicator for customer :1 (100% Tax)
Save
Select back arrow
Select excise indicator for plant radio button
Company code:XYZ
Plant:XYZP
First Month –April
Excise indicator for company:1 (100% tax)
Save
Select back arrow
Select excise indicator for plant and vendor radio button
Excise Indicator for company: 1
Excise Indicator for vendor:1
Excise Tax Indicator: 1
save
Select back arrow
Select excise indicator for plant and customer radio button
Excise Indicator for company: 1
26
Excise Indicator for customer:1

Excise Tax Indicator: 1
Save
28.Condition Record for Excise Duties
Use
The purpose of the activity is to create condition records for excise
duties in the Purchase Order.
Procedure
1. Access the activity using one of the following navigation options:
Transaction Code FV11

2. Condition type: Select XYZ1
Select Key combination button
3. Choose the Plant / Vendor / Material combination and Choose Enter.
Field Description Default

name Values
Plant XYZP
Vendor 2300101
Material XYZRM1
Amount 8
Tax
code V0

name Values
Plant XYZP
Vendor 2300101
Material XYZCAP
Amount 10
Tax
code V0
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Select save button

29.Creating Condition Record for Sales Tax Condition Type
1. Access the activity using one of the following navigation options:
Transaction Code FV11
2. Condition type: Select XYZ3
Select Key combination button
3. Choose Plant/Vendor/Material radio button.

Choose Enter.
4. The following key fields were used:

name Values
Plant XYZP
Vendor 2300101
Material XYZRM1
Amount 5
Tax
code V0

name Values
Plant XYZP
Vendor 2300101
Material XYZCAP
Amount 14.5
Tax
code V0
5. Choose Save.
END USER AREA:
1.CREATION OF PURCHASE ORDER:

28
Logistics> Materials Management> Purchasing> purchase order>

create>vendor/supplying plant known (ME21N)
Vendor No.2300101
Purchasing organization: XYZR

Purchasing Group:XYZ
Company Code:XYZ
Item:10
Material: XYZRM1
PO Quantity-1000 kgs
Net Price: 75 Rs
Currency:inr
Plant:XYZP
Enter
SELECT ITEM FOLDER : SELECT INVOICE TAB: CHANGE TAX CODE TO

V1-DUMMY TAX CODE FOR PURCHASES
ENTER
Select Taxes button

Select back arrow
save
2.GOODS RECEIPT:
Logistics> Materials Management> Inventory Management> Goods
Movement> Goods Movement (MIGO)
Select Goods Receipt

Purchase order No.
Enter
Select where tab:

Storage Location: HYD
29
Select Quantity Tab

Quantity in Delivery Note:1000 kgs
Select Item OK check box
Enter
SELECT EXCISE ITEM TAB:

TO SEE THE EXCISE VALUES:
ALSO SELECT EXCISE INVOCE TAB:
EXCISE INV NO: 1

EXC INV DATE: today’s date
SELECT CHECK BUTTON
POST
2 DOCUMENTS WILL BE GENERATED:
ONE FOR GR AND ANOTHER FOR EXCISE: DEBIT RG23A BED AND
CREDIT TO CENVAT CLEARING A/C
Select display-Enter-
Select document information tab-select fi documents button-
Select back arrow
Select Excise invoice tab
Select more data button-
Select Part 2 tab
Select accounting document number
3.INVOICE VERIFICATION:
Logistics> Materials Management> Logistics Invoice verification>
Document Entry (MIRO)
Invoice Date: Today’s date

Reference:123
SELECT CALCULATE TAX CHECK BOX
SELECT THE TAX CODE-V1
30
Text: Invoice Verification

Give Purchase Order No.
Enter
Amount-
Enter
SAVE
From the menu bar select invoice document<display
Select follow on documents button
4.CREATION OF PURCHASE ORDER:
Logistics> Materials Management> Purchasing> purchase order>

create>vendor/supplying plant known (ME21N)
Vendor No.2300101
Purchasing organization: XYZR

Purchasing Group:XYZ
Company Code:XYZ
Item:10
Account Assignment Category: A (ASSET)
Material: XYZCAP
PO Quantity-1 kgs
Net Price: 100000Rs
Currency:inr
Plant:XYZP
Enter
SELECT ITEM FOLDER : Select Account assignment tab
ASSET SELECT 500002-0 CAPITAL WORK IN PROGRESS
SELECT INVOICE TAB: CHANGE TAX CODE TO V1-DUMMY TAX CODE

FOR PURCHASES
ENTER
31
Select Taxes button

Select back arrow
save
5.GOODS RECEIPT:
Logistics> Materials Management> Inventory Management> Goods
Movement> Goods Movement (MIGO)
Select Goods Receipt

Purchase order No.
Enter
Select where tab:

Storage Location: HYD
Select Quantity Tab

Quantity in Delivery Note:1 EA
Select Item OK check box
Enter
SELECT EXCISE ITEM TAB:
TO SEE THE EXCISE VALUES:
ALSO SELECT EXCISE INVOCE TAB:
EXCISE INV NO: 1

EXC INV DATE: today’s date
SELECT CHECK BUTTON
POST
2 DOCUMENTS WILL BE GENERATED:
ONE FOR GR AND ANOTHER FOR EXCISE: DEBIT RG23A BED AND
CREDIT TO CENVAT CLEARING A/C
32
Select display-Enter-
Select document information tab-select fi documents button-
Select back arrow
Select Excise invoice tab
Select more data button-
Select Part 2 tab
Select accounting document number
6.INVOICE VERIFICATION:
Logistics> Materials Management> Logistics Invoice verification>
Document Entry (MIRO)
Invoice Date: Today’s date

Reference:222
SELECT CALCULATE TAX CHECK BOX
SELECT THE TAX CODE-V1
Text: Invoice Verification
Give Purchase Order No.
Enter
Amount-
Enter
SAVE
From the menu bar select invoice document<display
Select follow on documents button
7.TR6 Challan Posting with PLA Register Updation
Remittance of PLA amount-FB01L
Debit PLA on hold account Rs.10000 and credit to Bank current account
Rs.10000
8.Excise JV for updating TR6 challan

Once Excise Challan is given by Excise Dept to Accounts Dept
Via Menus Country India User menu  Indirect Taxes 
33
Excise JV  Create
Via Transaction Code J1IH
Click on
Give FI document No-

Document year: 2017
Company code:XYZ
Plant:XYZP
Excise Group: 40
ENTER
ENTER PLA AMOUNT 10000 DEBIT
SAVE
Display of accounting document
Enter:
1. Excise JV number
2. Excise JV year
Click for Accounting Document
SALES AND DISTRIBUTION:
1.CREATION OF CONDITION TYPE:
SPRO> SALES AND DISTRIBUTION> BASIC FUNCTIONS> PRICING>

PRICING CONTROL> DEFINE CONDITION TYPES
34
DOUBLE CLICK ON MAINTAIN CONDITION TYPES

CONDITION TYPE:XYZ4 (A/R BED %)

ACCESS SEQ: JEXC (INDIA EXCISE)
COND CLASS: A
PLUS/MINUS-A POSITIVE
CALCUALATION TYPE: A
CONDITION TYPE: XYZA (A/R BED-100%COPY)

ACCESS SEQ: JDUM (INDIA EXCISE)
COND CLASS: A
PLUS/MINUS-A POSITIVE
CALCUALATION TYPE: A PERCENTAGE
CONDITION TYPE: XYZ5(A/R CST)

ACCESS SEQ: JCST (CENTRAL SALES TAX)
COND CLASS: D TAXES
PLUS/MINUS-BLANK
CONDITION CATEGORY: D TAX
SELECT ITEM CON CHECK BOX

CONDITION TYPE: XYZ6 (A/R LST)

ACCESS SEQ: JLST (LOCAL SALES TAX)
COND CLASS: D TAXES
PLUS/MINU-BLANK
CONDITION CATEGORY: D TAX
35
SELECT AMOUNT/PERCENT CHECK BOX

SELECT ITEM CON CHECK BOX
SAVE
2)DEFINE ACCOUNT KEYS:

SPRO> SALES AND DISTRIBUTION> BASIC FUNCTIONS> ACCOUNT
ASSIGNMENT/COSTING> REVENUE ACCOUNT
DETERMINATION>DEFINE AND ASSIGN ACCOUNT KEYS
DOUBLE CLICK ON DEFINE ACCOUNT KEY

X4-EXCISE DUTY
X5-A/R CST
X6-A/R VAT
SAVE
3.CREATION PRICING PROCEDURE: (V/08)
SPRO> SALES AND DISTRIBUTION> BASIC FUNCTIONS>

PRICING>PRICING CONTROL>DEFINE AND ASSIGN PRICING
PROCEDURES
DOUBLE CLICK ON MAINTAIN PRICING PROCEDURES

Select New Entries Button
PROCEDURE-XYZ-DOMESTIC BILLING-Save
Select XYZ-Double click on control data folder-
Ste
p Sub
nu Conditi To Req Stat - Cal
mb on Descriptio From ste uire istic Prin tota typ Account
er Type n step p d s t l e key
100 PR00 Price X X ERL
Calculated
105 cell 100 100 X
A/R BED
110 XYZ4 % 100 100 X
36
A/R BED
-100%cop
120 XYZA y 110 110 X X4
Calculated
150 Value 105 105 X
Basic+exci
160 se 120 150 X
170 XYZ5 A/R CST 160 160 X5
180 XYZ6 A/R LST 160 160 X6
Base + ED
200 + ST 160 180 X
210 VPRS COST x B
Profit 11
250 Margin
SAVE
4.DEFINE PRICING PROCEDURE DETERMINATION

PRICING>PRICING CONTROL>DEFINE AND ASSIGN PRICING
PROCEDURES
DOUBLE CLICK ON DEFINE PRICING PROCEDURE DETERMINATION

SELECT POSITION BUTTON
GIVE SALES ORGANIZATION-XYZS
PRESS ENTER
PRICING PROCEDURE-XYZ
SAVE
5.DEFINE TAX DETERMINATION RULES:
IMG menu Sales and Distribution  Basic Functions 

Taxes  Define Tax Determination Rules
37
SELECT NEW ENTRIES
IN India 1 XYZ5 A/R CST
IN India 2 XYZ6 A/R LST
SAVE
6.Defining Tax Relevancy of Master Records
TAXES>DEFINE TAX RELEVANCY OF MASTER RECORDS
DOUBLE CLICK ON CUSTOMER TAXES(OVK3)

TAX CATEGORY TAX CLASSIFICATION DESCRIPTION

XYZ5 0 NIL TAX
XYZ5 1 TAXABLE
XYZ6 0 NIL TAX
XYZ6 1 TAXABLE
SAVE
SELECT BACK ARROW
DOUBLE CLICK ON MATERIAL TAXES (OVK4)

SELECT NEW ENTRIES
TAX CATEGORY TAX CLASSIFICATION DESCRIPTION

XYZ5 0 NIL TAX
XYZ5 1 TAXABLE
XYZ6 0 NIL TAX
XYZ6 1 TAXABLE
SAVE
7.ASSIGN DELIVERING PLANTS FOR TAX DETERMINATION
SPRO> SALES AND DISTRIBUTION> BASIC FUNCTIONS> TAXES>

ASSIGN DELIVERING PLANTS FOR TAX DETERMINATION (OX10)
38
Select Plant XYZP

SELECT DETAILS BUTTON
SELECT ADDRESS BUTTON
FOR REGION—ASSIGN TG (MANDATORY)
SAVE
8.ASSIGNMENT OF ACCOUNTS FOR AUTOMATIC POSTINGS (VKOA)

SPRO> SALES AND DISTRIBUTION> BASIC FUNCTIONS> ACCOUNT
ASSIGNMENT/COSTING>REVENUE ACCOUNT
DETERMINATION>ASSIGN GL ACCOUNTS
DOUBLE CLICK ON TABLE 1

Appli Conditi Chart Sales Acct Acct Acco g/l

catio on of org assgn assignm untin account
n type Accou grp for ent grp g key
nts custome for
rs material
V KOFI XYZ XYZS 01 03 X4 100522
SAVE
9.Assign Tax classification in customer master (xd02)-

SELECT CUSTOMER NO. 2500101-XYZ SD CUSTOMER
COMPANY CODE:XYZ
SALES ORGANIZATION:XYZS
DISTRIBUTION CHANNEL:XD
DIVISION:XD
ENTER
Select sales area data button

Select billing documents tab
Tax category Tax classification

XYZ5 BLANK
XYZ6 1-TAXABLE
SAVE
39
10.IN MATERIAL MASTER ENTER TAX CLASSIFICATION-MM02

MATERIAL XYZFG
PRESS SELECT VIEWS BUTTON
SELECT SALES: SALES ORGANIZATION DATA 1 VIEW
SELECT ORGANIZATIONAL LEVELS BUTTON
PLANT:XYZP
DISTRIBUTION CHANNEL :XD
ENTER
Tax category Tax classification
XYZ5 1-TAXABLE
XYZ6 1-TAXABLE
SAVE
11.CREATION OF CONDITION RECORDS(VK11)

A)SELECT XYZ4 A/R BED%
SELECT KEY COMBINATION BUTTON
SELECT MATERIAL-
Enter
Sales Organization XYZS HYD Sales Org
Distribution Channel XD DIRECT SALE
MATERIAL XYZFG
AMOUNT 10
SAVE
SELECT BACK ARROW-
SELECT CONDITION TYPE XYZA-A/R BED 100% COPY

SELECT SALES ORGANIZATION-
ENTER
AMOUNT 100
SAVE
SELECT BACK ARROW
SELECT CONDITION TYPE XYZ6—A/R LST

40

SELECT COUNTRY/PLANT/REGION/MATERIAL
ENTER
Country IN India
Plant XYZP
Region TG TELANGANA
MATERIAL XYZFG
Amount 14.50
TAX CODE: A1 (DUMMY CODE FOR SALES)
SAVE
12.CREATION OF SALES ORDER (VA01)-
13.DELIVERY WITH PGI (VL01N)
14.BILLING (VF01)
15. LOCAL EXCISE INVOICE CREATION

GOTO J1ILN
INDIRECT TAXES/SALES/OUTBOUND MOVEMENTS/ EXCISE INVOICE/
FOR SALES ORDER/ OUTGOING EXCISE INVOICE CREATE/
CHANGE/DISPLAY (J1IIN)
Select from billing
Billing document-
enter
excise group: 40
series group:40
select utilization(calculator) button
by default excise invoice type local will come
save
IGNORE THE WARNING MESSAGE PRESS ENTER
GOTO BILLING DOCUMENT DISPLAY-VF03
SELECT ACCOUNTING BUTTON
SELECT ACCOUNTING DOCUMENT NUMBER
16.EXCISE UTILIZATION
Use the transaction code: j1iln
Indirect Taxes/sales/outbound movements/ fortnightly payment(j2iun)
41
Company code: XYZ

Plant: XYZP
Excise group:40
Period: 01.6.2017 to 30.6.2017
Select execute button
Utilized Amount:
Press enter
Select save button
To view the document posted:fb03
17.EXTRACT EXCISE REGISTERS:
USE TRANSACTION CODE : J1ILN
INDIRECT TAXES> REGISTERS> EXCISE TAX> EXTRACT (J2I5)
EXCISE GROUP:40
START DATE:01.6.2017
END DATE:30.6.2017
Select any register radio button
SELECT RG23A PART I (QUANTITY)

SELECT RG23A PART II (VALUE)
SELECT RG23C PART I (QUANTITY)
SELECT RG232 PART II (VALUE)
SELECT PLA CHECK BOX
EXECUTE:
Enter
SELECT BACK ARROW:
EXCISE TAX> PRINT UTILITY PROGRAM (J2I6)
PRINT REGISTER:
SELECT RG23A PART 1 (QUANTITY INFORMATION)
EXECUTE
42
EXCISE GROUP:40
START DATE-01.6.2017
END DATE-30.6.2017
SELECT SCRIPT FORM RADIO BUTTON
Execute
OUTPUT DEVICE: LP01
SELECT PRINT PREVIEW BUTTON
SELECT BACK ARROW 2TIMES
SELECT RG23A PART II (VALUE INFORMATION)
EXECUTE
EXCISE GROUP-40
START DATE: 1.6.2017
END DATE:30.6.2017
EXECUTE
OUTPUT DEVICE : LP01
SELECT RG23C PART I (QUANTITY INFORMATION)
EXECUTE
EXCISE GROUP-40

43
END DATE:30.6.2017
EXECUTE
SELECT RG23C PART II (VALUE INFORMATION)
EXECUTE
EXCISE GROUP-40
END DATE:30.6.2017
EXECUTE
SELECT PLA RADIO BUTTON
EXECUTE
EXCISE GROUP-40

44
END DATE:30.6.2017
SELECT INDIVIDUAL/CONSOLIDATED RADIO BUTTON
EXECUTE
SELECT BACK ARROW
18.TO VIEW SALES TAX REGISTER:
Upto Registers the path is same

Select sales tax folder<sales tax register (j1i2)
Company code:XYZ
LST condition type:XYZ3
Select back arrow-

LST condition type:XYZ6
19.TRANSFER OF 50% BALANCE OF CENVAT ON HOLD TO RG23C PART

II ACCOUNT ON NEXT YEAR 1ST-
USE TRANSACTION CODE: J1ILN
INDIRECT TAXES<PROCUREMENT<EXCISE INVOICE< REPORTS<

BALANCE CREDIT OF CAPITAL GOODS (J2I8)-TO RUN NEXT YEAR
1ST
Company code: XYZ

Plant: XYZP
45
Excise Group:40
Select list based on vendor name radio button
Select the invoice number you want to transfer credit by putting tick on
check box.
Click push button

Goto FB03 and see the document posted-
20. ER1 Report –Monthly Report

Via Menus No Menu
Via Transaction Code J2IER1
Enter
Field Name Description R/O User Action and Comments
/C Values
Excise Excise group for R 40
Group which RT12
Register is being
generated
Plant Plant R XYZP
Report Report Period Starting & Current period
Period Ending date of shall be given
the period for
which currently
ER1 Register is
being
generated
Last Last Utilization All ready
Utilization Period Utilized Period
Period shall be given
1. From the Details, select one of the radio button

 Display headings
46
 Details of manufacture, clearance and duty payable )

 Details of duty paid on excisable goods
 Details of CENVAT credit availed and utilized
 Details of other payments made
 Self- assessment memorandum
Based on the selection system will display the corresponding detail.
21. CENVAT REGISTER
Use transaction code: j1iln
Indirect Taxes< Registers< Excise Tax< Cenvat Register (J2I9)-
COMPANY CODE: XYZ
EXCISE GROUP: 40
POSTING DATE: 1.6.2017 TO 30.6.2017
SELECT ABSTRACT RADIO BUTTON
SELECT INPUTS RADIO BUTTON

Central Excise and Sales Tax

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Central Excise and Sales Tax

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1

CENTRAL EXCISE AND SALES TAX

Central Excise is an Indirect Tax

This will be levied at the time of sales (removal of goods)

Central Excise Registration Plant wise

Central Excise Rates are given in Central Excise Tariff-

In Central Excise Tariff we have Chapter IDs-8 digits code-

Excise duties are classified into 3 categories

1) CENVAT (Central Excise Value Added Tax): (Earlier MODVAT)

2) RG23A-Excise Duty on consumables-100% Cenvat can be adjusted in

RG23A –Part I- Quantity Updation

3) RG23C-Excise Duty on Capital Goods-50% Cenvat can be adjusted in

RG23C–Part I- Quantity Updation

4)PLA-Personal Ledger Account-Bank Excise credits and debits

5)ER1-Excise Return 1-(Earlier it was RT12)-Monthly Return

6)RG1- Finished Goods Register

Capital Goods Purchases:

ii)RG23C BED a/c Dr 10

1.In case of sales

2.In case of excise invoice creation

i) In case of PLA deposit entry by accounts-

PLA on hold account dr 500

ii)Once PLA payment challan is given by excise dept to accounts-

PLA account Dr 500

4.Adjustment of Excise payable against rg23a/rg23c and pla

1.ACTIVATE COUNTRY VERSION INDIA FOR SPECIFIC YEARS:

SPRO> FINANCIAL ACCOUNTING> FINANCIAL ACCOUNTING GLOBAL

SELECT POSITION BUTTON

SELECT ACTIVATE CHECK BOX

2.CHECK AND CHANGE SETTINGS FOR TAX PROCESSING

POSTING INDI: 2 SEPARATE LINE ITEM

3.DEFINE CONDITION TYPES

SPRO> FINANCIAL ACCOUNTING> FINANCIAL ACCOUNTING GLOBAL

DOUBLE CLICK ON DEFINE CONDITION TYPES

i) CONDITION TYPE: XYZ1-A/P EXCISE BED

SELECT NEXT ENTRY BUTTON

CONDITION TYPE: XYZ2-A/P CST

4.CREATION OF TAX PROCEDURE

SPRO> FINANCIAL ACCOUNTING> FINANCIAL ACCOUNTING GLOBAL

SPRO> FINANCIAL ACCOUNTING> FINANCIAL ACCOUNTING GLOBAL

FOR COUNTRY IN: ASSIGN TAX PROCEDURE TAXINN

6.CREATION OF TAX CODES

SPRO> FINANCIAL ACCOUNTING> FINANCIAL ACCOUNTING GLOBAL

TAX CODE V1-ENTER

DUMMY TAX CODE FOR INPUT TAX-ENTER

TAX CODE A0- ENTER

TAX CODE A1-ENTER

200156-RG23A BED-COPY 200155 VAT RECEIVABLE

8.ASSIGNMENT OF ACCOUNTS FOR AUTOMATIC POSTINGS

SPRO> FINANCIAL ACCOUNTING> FINANCIAL ACCOUNTING GLOBAL

SELECT POSTING KEY BUTTON

SELECT ACCOUNTS BUTTON

DOUBLE CLICK ON X3-

SELECT ACCOUNTS BUTTON

DOUBLE CLICK ON X5-

FOR X5: - 100524-CST PAYABLE

9.Creation of Capital goods Material Master-mm01

Unit of Measurement:EA (EACH)

10.Creation of Capital work in progress-asset master-as01-

Asset Class: XYZ4000

Created Asset master 500002-0 CWIP GENERAL

Give G/L Account No. 200025-Capital Work In Progress

Select save button