SAP SD CIN Configuration

What is CIN?
CIN Means Country India Version

In Indian Taxing procedure, Excise Duty plays a vital role in

manufacturing scenario’s. Excise related configuration is known
as CIN configuration. CIN Configuration is a topic in itself.

Some info on CIN Configuration (it may not appear as

understandable below, but if you check on screen, it will be
understood better)

Country Version India comes with four pricing procedures as follows:

- JINFAC (Sales from manufacturing plants)
- JINEXP (Export sales)
- JINDEP (Sales from depots)
- JINSTK (Stock transfers

CIN: IMG > Logistics - General > Tax on Goods Movement > 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 Ids

In this activity, you maintain excise registration IDs. You create one
ID for each of your business's excise registrations.
- For each excise registration in your business create a
registration ID, and state:
- 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.
- The maximum number of items to be printed on each excise
invoice
- Whether you are allowed partial CENVAT credits

Maintain Registration ID NUMBER, Excise code number, excise

registration number
ECC Number: Specifies the organization's ECC number.
Excise Registration Number: A number assigned to each
premises or location that has registered as a manufacturer with
the excise authorities.
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.

Indicator for confirming, AED usage Additional Excise duty

Percentage.
These are livable under the additional duties of excise act.
These duties are in addition to basic excise duty and special
excise duty. Example - Additional Excise duty is livable in case
of textile products, tobacco and sugar.

Similarly for SED CESS Number of Items in Excise Invoice 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.

Excise register set description: Description of the excise registers set.

Partial CENVAT Credit: Indicates that the excise registration ID is

allowed to credit only a portion of its input excise duty to its
CENVAT account

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.

Maintain Company Code Settings.

In this IMG activity, you maintain the data relating to your
company codes.

Document Type for CENVAT Postings.

It controls, which document type the system uses when making
CENVAT postings in Financial Accounting (FI). Here ED is
document type for cenvat posting.

Indicator for providing debit account overwriting

Debit Account Overwrite Indicator. X - Indicates debit accounts
can be overwritten. Use In excise journal voucher transaction. It
provides the flexibility to the user to enter the debit account of
his choice depending on the nature of transaction.

Automatic balance Indicator - Excise year start month. The calendar

month marking the beginning of the excise year. 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 procedure :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. Number of excise invoices to be selected
Indicates the number of excise invoices that needs to be
selected in the excise invoice selection.

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.

Document type for TDS FI posting: Financial accounting document

type for TDS posting.
Document type for FI posting on Utilisation Financial accounting
document type for TDS posting.

Indicator for item level excise duty round off - 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

Rounding off of Excise duty for outgoing excise invoice - 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.

Immediate Credit on Capital Goods - 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.

CVD Clearing Account - Specifies which G/L account the system

credits when you take a CENVAT credit on countervailing duty in
the Incoming Excise Invoices transaction.

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 - 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.
Maintain Plant Settings - In this IMG activity, you maintain excise
information relating to your plants.
Plant Settings - In this activity, you maintain excise information
relating to your plants.
For each plant:
- Specify whether it is a manufacturing site or a depot.
- Assign it an excise registration ID. - You can assign the same
ID to more than one plant, if required.

Depot - Indicates that the plant in question is a depot. - Depots are

required to prepare register RG 23D, and follow different
procedures for goods receipt and invoice generation.
- Number of goods receipt per excise invoice.
- Multiple GR for one excise invoice, Single credit
- Multiple GR for one excise invoice, multiple credit

Maintain Excise Groups - 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 - Under normal circumstances, excise authorities

require every business to maintain only one set of excise
registers and one set of accounts. But through exemption from
the authorities, multiple books can be maintained.
If your company has only one set of excise registers, then you need
to maintain only one excise group.
1. Create one excise group for each set of registers that you
need to keep.
2. Assign the excise groups to plants.
3. Maintain whether this Excise group is for a depot or not.
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 availa the credit only
after all the goods receipts have been made mark it as ' Multiple
GR for one excise invoice, single credit'.
4. If you want to automatically create Excise invoice during Sales
cycle at the time of billing the tick the indicator 'Create EI'
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.
7. If the indicator 'Folio no create' is marked system will generate
Folio numbers for RG23D during receipt of excise invoice into
depot.
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 Governs which set of excise registers a
business transaction will be included in.
Following is the relation between excise group, plant and registration.
- In define excise groups in Customizing.
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.

Indicates that the plant in question is a depot. - Depots are required

to prepare register RG 23D, and follow different procedures for
goods receipt and invoice generation.
- GR Per Excise Invoice
- Multiple GR for one excise invoice , Multiple credit
- Multiple GR for one excise invoice , Single Credit

Create Excise Invoice Automatically - Instructs the system to

automatically create a Sales and Distribution (SD) excise invoice
immediately you create a commercial invoice or a pro forma
invoice.
The excise invoice is created in the background. - 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.

RG23D Sales Creation and posting option - RG23D Automatic

Option if selected will create Depot excise invoice by posting the
selection of excise invoices in single step. If this is not selected
then you need to separately do RG23D selection
followed by PGI and then RG23D verification and posting. If
you need automatic posting of RG23D selection then the Post
Goods Issue should have been completed before running
RG23D selection.

Default excise qty in GR - 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.
Folio number for depo 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

Also we can set indicator for creation of part 1 for:

- Blocked stock
- Stock transport order
- Consignment stock

Maintain Series Group - 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.

- Define excise series groups based on type of outgoing document

- Assign series group to excise registration ID
- If no financial postings are required for an Excise invoice in this
seris group then you tick the 'No utilization' indicator.
- If the CENVAT has to be paid immediately and you need not
wait for the Fort nightly payment then mark the 'Immediate
Utilization' Iindicator. Example - You could define two series
groups, group 001 for excise invoices, and group 002 for 57 F4
documents.
- 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.
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.

Account determination for immediate payment will be done exactly

the same as being done for fortnightly utilization program.

Maintain Excise Duty Indicators - In this IMG activity, you maintain

the excise duty indicators.
IMG > Logistics - General > Tax On Goods Movement > India >
Basic Settings > Determination of Excise Duty > 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.
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.

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.
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 >
Condition-Based Excise Determination

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.

Customizing : Make the settings in Customizing Basic -> India -> for
Logistics – General, by choosing Taxes on Goods Movements
Account -> Excise Duties Using Condition Technique and …->
Settings Determination.

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.

Creating Condition Records for Excise Duty

1. In the command field, enter FV11 and choose .
2. Enter the condition type that you want to create a condition
record for and choose .
The Key Combination dialog box appears.
3. Select the combination of objects that you want to create the
condition record for. On the dialog box, Control Code means
"chapter ID." 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 .
5. Enter data as required. - In the Tax Code field, enter the
dummy tax code that you have defined.
6. Save the condition record.
Formula-Based Excise Determination - When you execute a
business transaction involving materials that are subject to
excise duty, the system automatically calculates the duty for you.

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 maintain the following types of data:
- Plant master data
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).
- Vendor master data
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.
- Customer master data
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.
- Material master data
Each material is assigned a chapter ID.
- Excise tax rate
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.
Let us consider an example to illustrate how the system determines
which rate of excise duty to apply to a material. Assume you are
posting a sale of ball bearings to a customer. The system
automatically determines the rate of excise duty as follows:
1. Looks up the customer master data to see what status you
have assigned the customer.
Let's assume you've assigned the customer status 3.
2. Looks up the plant master data to see what status you have
assigned the plant. Similarly, your plant has status 2.
3. The system looks up the table under Excise Indicator for Plant
and Customer to see what the final excise duty indicator 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.

Define Tax Code for Purchasing Documents - 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.
- Create a new tax code, and set the tax code type to V (input
tax). Do not make any other settings for it.
- 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.
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.

The standard system comes with sample settings for the tax
calculation procedures and pricing procedures.
Use these settings as a basis for your own.
IMG > Logistics - General > Tax On Goods Movement > India >
Account Determination

Define G/L Accounts for Taxes - 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.
- 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.
- VS1 (basic excise duty)
- VS2 (additional excise duty)
- VS3 (special excise duty)
- VS5 (sales tax setoff)
- MWS (central sales tax)
- MW3 (local sales tax)
- ESA (service tax)
- ESE (service tax expense)
Specify Excise Accounts per Excise Transaction - 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 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 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 TT DC ind Account name
- GRPO CR CENVAT clearing account
- GRPO CR RG 23 BED account
- GRPO DR CENVAT on hld account

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 - 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.
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.

Even though this functionality is available in enterprise version, a

small configuration step has to be made in Screen Sequences
for Material Master.

Following document helps you to do this configuration.

- Material Master à Logistics General
1. Go to IMG Define Structure of Data Screen for each
Configuring the Material master Screen Sequence.
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 Sub screens 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 sub screen and
ensure that the sub screen 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.
6. Save the setting.
7. Create a Material Master and check whether in Screen
Foreign Trade
– Import, Excise related sub screen appears.