Excise Invoice (Outgoing

)
Definition
A business document, in India, that you prepare when you issue excisable goods from a manufacturing plant, for example: y y 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.

Use
In the R/3 System, there are three different procedures for creating excise invoices y Sales direct from the factory This procedure is for when you sell manufactured goods straight from the factory at which they were produced, in which case you levy excise duty when the goods leave the factory on their way to the customer. If, when you send the goods to the customer, you enclose the commercial invoice, you create the excise invoice with reference to the commercial invoice. If you want to send the commercial invoice after you have dispatched the goods, however, you create the excise invoice with reference to a pro forma commercial invoice. For more information about these procedures, see Sales from Factories. As well as creating excise invoices individually, you can also create them in batches (see Creation of Excise Invoices in Batches). y Sales from depots A depot is a site at which the goods are stored, away from the factory at which they were produced. In this procedure, you have to levy the excise duty when you transfer the goods from the factory to the depot, and then make sure this is passed on to the customer when it makes a purchase. For more information, see Sales from Depots. y Sales (other goods movements) Some other goods movements may also require you to create an excise invoice with reference to other documents. The R/3 System offers separate functions for these purposes (see Other Outward Movements).

Structure
Numbering of Excise Invoices

Outgoing excise invoices have two numbers: an internal document number, which is assigned immediately you create an excise invoice; and an excise invoice number, which is not assigned until you have verified and posted it. As far as the excise invoice number is concerned, you have to number your outgoing excise invoices in sequential order, starting each year on 1 April. You must notify the excise authority of the jurisdiction of the invoicing location. The serial number must be printed on each page of the excise invoice. Each number range is governed by a series group. You must create at least one series group in order to be able to number the excise invoices. If you need more than one number range, you must create the corresponding number of series groups. You do so in Customizing for Logistics ± General, by choosing Taxes on Goods Movements p India p Basic Settings p Maintain Series Groups.

Number of Line Items Per Excise Invoice
Some states allow you to include only a limited number of items for each page of an excise invoice (for example, if the excise invoices are to be printed on prenumbered forms). You can customize the system so that it prints the excise invoice accordingly, in Customizing for Logistics ± General, by choosing Taxes on Goods Movements p India p Basic Settings p Maintain Excise Registrations.

Material Master (Excise Data)
Definition
The part of the material master record where you record excise information. To access the material master, from the SAP Easy Access menu, choose Logistics p Materials Management p Material Master p Material p « The excise data is displayed in a separate group box on the Foreign Trade: Import Data and Foreign Trade: Export Data tabs.

Use
Customizing
In order for the users to be able to see the excise data group box, carry out the IMG activity in Customizing for Logistics ± General, by choosing Taxes on Goods Movements p India p Master Data p Assign Users to Material Master Screen Sequence for Excise Duty. T.Code OMT3E

Customer Master (Country Version India Data)
Definition
The part of the vendor master record where you record information about a vendor relating to sales tax, excise duty, and withholding tax.

To access the vendor master, from the SAP Easy Access screen, choose Logistics p Sales and Distribution p Master Data p Business Partners p Customer p «.

Use
When you have entered the customer that you want to process, you can access the excise data from every screen, by choosing CIN Details. There are three separate tabs, one for each sort of tax. If you prefer, you can also maintain this data in the Excise Rate Maintenance transaction (see Customer Master (Excise Data)).

Customer Master (Excise Data)
Definition
The part of the customer master record that contains information relating to Indian excise duty.

Use
In conjunction with other data, this data is used to calculate excise duty on various transactions. To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes p Master Data p Excise Rate Maintenance, and then select the following options described below.

Structure
The excise part of the customer master contains the following information:

Customer Excise Details
On this screen, you enter your customers' tax registration numbers, which are used for various forms of correspondence and reports: y y y y Excise registration number (and the range, division, and collectorate in which this is located) Central sales tax (CST) number Local sales tax (LST) registration number Permanent account number (PAN)

In order for the system to be able to calculate which rate of excise duty to apply on sales to the customer, you must also assign it a customer excise duty status (for more information about how this works, see Determination of Excise Duty Rates).

Excise Indicator for Plant and Customer

for example. Pricing Use When you create a sales document. Excise Duties For each form of excise duty. there are three separate condition types as follows: Excise duty Basic Additional Special Cess Ad valorem JEXP JEAP JESP JCEP Specific JEXQ JEAQ JESQ JCEQ Total* JEXT JEAT JEST JCET * These condition types show.On this screen. It is the values in these condition types that the system uses in follow-on documents. including any excise duties and sales taxes. the system automatically determines the price of the goods you are selling. The excise conditions are determined using the access sequence JEXC. you define the final excise duty indicator (for more information about how this works. so that you can create excise condition records for all of the following combinations: . All of these condition types are discount surcharge conditions and are posted using the accounting key EXD. the total basic excise duty on the goods (ad valorem duty plus specific duty). Features Country Version India comes with four pricing procedures as follows: y y y y JINFAC (Sales from manufacturing plants) JINEXP (Export sales) JINDEP (Sales from depots) JINSTK (Stock transfers) These pricing procedures determine the net price (or the assessable value. if there is one) and then calculate all forms of excise duties and sales taxes on the goods. This access sequence contains the following condition tables. see Determination of Excise Duty Rates).

plant. region of ship-to party. those that qualify for concessional tax rates and those that don't. plant. region of delivering plant. chapter ID* Country. and one for surcharges (JCSR and JLSR). chapter ID. chapter ID Country. customer tax classification. chapter ID. Sales Taxes For central sales tax and local sales tax. When you create a condition record for the sales taxes. and local sales tax using the access sequence JLST. plant. reference document and item * The chapter ID is stored in the control code field. material Country. for example. When you create a condition record. The system determines the central sales tax using the access sequence JCST. If you want to create condition records for different types of customers. Both access sequences use the following condition tables: Table 359 367 368 Conditions Plant. material tax classification Sales from Factories Purpose . you can define customer tax classifications in Customizing and create condition records for each classification.Table 362 357 358 371 369 372 Conditions Country. one for the basic tax (JCST and JLST respectively). ship-to party Country. When you enter a material's chapter ID in the material master. material Country. These are all tax conditions and are posted with the account key MWS or MW3. you must specify a tax code that you want the tax to be posted under in Financial Accounting (FI). plant. there are two condition records each. material group Country. region. customer tax classification Sales organization. the system copies the chapter ID to the control code field. the field name is control code. chapter ID. plant.

so as to prevent them from creating multiple pro forma excise invoices. Prerequisites In order for the system to be able to copy the information from document to document. o If the invoice is to be shipped with delivery. following the standard procedure. In addition. you must also have maintained the settings in Customizing for Logistics ± General. There are special procedures for customers in possession of exemption forms. which you have to send with each delivery that is subject to excise duty. a copy of document type F8) ± F2. Process Flow 1. the shipping clerk: i. Two sample pricing procedures are provided for this sales procedure. Creates an excise invoice from the invoice . On the initial screen. following the standard procedure. the document flow would be OR (standard sales order type) ± LF (standard delivery type) ± F2 (invoice). a copy of LF) ± JEX (pro forma billing document type. The sales clerk creates a sales order. This differs according to when you want to send the commercial invoice: y Along with the delivery In this case. What you do at this stage depends on whether you want to send the commercial invoice along with the delivery or whether you want to invoice the customer later.This process describes how the R/3 System handles sales from factories. again. Creates an invoice. ii. There are two scenarios. 3. you set the appropriate delivery type (see above). depending on whether you want to send the commercial invoice along with the delivery or at a later date. allowing for the creation of excise invoices. The warehouseman enters the goods issue. by choosing Taxes on Goods Movements p India p Business Transactions p Outgoing Excise Invoices p Assign Billing Types to Delivery Types. 4. The shipping clerk creates a delivery. following the standard procedure. y At a later date The document flow would be OR ± JF (delivery type. J1INFAC (condition-based excise determination) and JFACT (formula-based excise determination). The system only allows users to create a pro forma excise invoice if the delivery is complete. you must have set up the copying control procedures in Customizing for Sales and Distribution (SD). 2.

by choosing Taxes on Goods Movements p India p Business Transactions p Utilization p Utilization Determination. Creates an excise invoice from the pro forma excise invoice In both these cases. following the procedure. Alternatively. in Customizing for Logistics ± General. When the time comes to invoice the customer. the shipping clerk: i. the system creates an accounting document to post the excise duty to a clearing account. you create the invoice. Automatic Creation of Excise Invoices Use The R/3 System can automatically create an outgoing excise invoice for you immediately you post a commercial invoice (or a pro forma invoice) for a customer sale. Creates the pro forma excise invoice The pro forma excise invoice is only required for technical purposes and is not sent to the customer. 5. Activities Customizing Activate the function in Customizing for Logistics ± General. you can also have the system create them automatically. Specify which CENVAT accounts the system is to post the different types of excise duty to. you can create them in batches.o If the invoice is to be sent on at a later date. you can combine the delivery items in a single invoice (if the standard requirements are met). by choosing Taxes on Goods Movements p India p Basic Settings p Maintain Excise Groups. Instead of creating excise invoices manually. 6. . standard Irrespective of the number of excise invoices that you have issued. This function applies to excise invoices for sales from factories only. ii. The system does not make any accounting postings at this stage. You ship the goods.

the excise value will be recalculated at the normal rate. Such businesses must provide you with a copy of their exemption forms in order to claim their exemption. See also: Form Tracking Export-Oriented Units Use Any sales that you make to export-oriented units (EOUs) require special treatment by the SAP System. Activities When you come to create the excise invoice. in Customizing for Logistics ± General. Exemption Forms Use Some customers may be liable to excise duty at reduced rates or exempt from it altogether (for example. No excise duty is debited to the CENVAT account. enter the form. If the form has not been submitted by the time you create the pro forma excise invoice. customers abroad). the system creates an excise invoice. Day-to-Day Activities When you post an invoice.Specify which excise group and series group the excise invoices are to be created for. you have to record the form number in the sales order. using the customer tax classification fields. you can use different excise rates for a sale transaction. Prerequisites You have maintained a zero-rate excise duty indicator for customers that qualify as 100% EOUs. All the information that it needs to create the excise invoice is provided either by the invoice or by the Customizing settings that you have made. and so no accounting entries are . Activities If you make a sale to a customer that is in possession of an exemption form. It also determines the excise invoice type automatically. by choosing Taxes on Goods Movements p India p Business Transactions p Outgoing Excise Invoices p Maintain Default Series Groups and Excise Groups. Based on the customer tax classification status. The system then automatically applies the appropriate rate of excise duty. When you create the sales order. the excise value is zero in the pro forma excise invoice document.

Features To access the report. Printout of Excise Invoices . instead of creating each one individually (see Sales from Factories). which you process as follows: 1. specify which billing documents (invoices or pro forma excise invoices) you want to create excise invoices for. If the CENVAT accounts do not contain enough credits to cover the excise duties. 2. When you know which documents you want to process. and the system generates an outgoing excise invoice.generated. If you want to see how much credit is available on your CENVAT accounts ± and if there is enough to cover the excise duty that you will incur when you create the excise invoices ± choose Account balances. However. when you print the excise invoice. A dialog box appears with the following information: o o o The amounts under Balances are the amounts available on the CENVAT accounts. Selection On the selection screen. Creation of Excise Invoices in Batches Use You use this report to create excise invoices for batches of invoices and batches of pro forma excise invoices. the sale is marked as a deemed export. The amounts under Utilization are the total amounts of the excise duties to be levied. Output A list of commercial invoices and pro forma excise invoices appears. choose Indirect Taxes p Sales/Outbound Movements p Excise Invoice p For Sales Order p Batch Utilization. from the SAP Easy Access screen. the amount short is shown under Deficit. Even though the excise duty is zero. select them and choose Batch utilization. the system calculates the duty for the purposes of printing. The excise invoices are then created in the background.

Prerequisites You have: y Customized the output for billing documents You can do so in Customizing for Sales and Distribution (SD). you have the following options: y y To display an excise invoice. printed excise inv. To print an excise invoice. If any of these are reprints. enter the numbers of the excise invoices. Selection On the selection screen. This ensures that output gets copied to all the excise reference documents. Features To access this function. You can use output type J1I0 and the SAPscript form J_1I_EXC_INVOICE. Creating Pro Forma Excise Invoices You create a pro forma excise invoice as you would Billing type field. from the SAP Easy Access screen. by choosing Basic Functions p Output Control p Output Determination p Output Determination Using Condition Technique p Maintain Output Determination for Billing Documents. but in the . The output determination has been set up for the billing document that is used as the excise invoice reference. select it and choose . select it and choose . choose Indirect Taxes p Sales/Outbound Movements p Excise Invoice p For Sales Order p Print.Use You use this report to print outgoing excise invoices. y Maintained condition records for the output You can do this in Logistics p Sales and Distribution p Master Data p Output p Billing Document p Create. The driving program is J_1IEXCP. create any other billing document. select Incl. Output From the list of excise invoices. select Excise invoice.

Creating Excise Invoices Use This is the standard procedure that you follow to create an outgoing excise invoice. 5. which the system has copied from the reference document. Prerequisites You have: y y Customized the rounding-off indicator for sales transactions Specified which exchange rate type to use for export invoices You make both of these settings in Customizing for Logistics ± General. choose . for delivery p Create. choose Excise Invoice p Create. If you want to create the excise invoice with reference to a delivery note. 4. Save the excise invoice. Choose . To check if the utilization is done properly and the document is ready for posting. the line items. 7. You create the excise invoice from a reference document: either an invoice. a pro forma excise invoice. Enter the number of the reference document. choose Indirect Taxes p Sales/Outbound Movements p Excise Invoice p For Sales Order p Outgoing Excise Invoice Create/Change/Display p « o o If you want to create the excise invoice with reference to a pro forma excise invoice or commercial invoice. The header data is displayed at the top. To display the balances of the CENVAT accounts. The excise invoice screen appears. 2. 9. Procedure 1. you can search for it by choosing 3. by choosing Taxes on Goods Movements p India p Basic Settings p Maintain Company Codes. To display the utilization details. 6. choose To enter texts for the excise invoice. choose Balances. Enter header data as required. inv. 8. or a billing document. choose Exc. are displayed at the bottom. If you do not know the document number. Due list. . choose . From the SAP Easy Access screen. .

To access this function. the system proposes the excise duty values directly in the RG 23A fields. in Customizing for Logistics ± General. These excise invoices are not listed further during fortnightly payment of CENVAT. including which CENVAT accounts the excise will be debited to. Prerequisites You can enable the immediate utilization of CENVAT. you can change the default utilization proposal. For information about debiting the excise duty to a different company. the system allows you to display the information about the excise duty. If immediate utilization is active for a series group. It first takes the RG 23 accounts. in which case you need to pay the duty immediately. the excise collectorate can enforce an immediate payment of excise. It . but the postings are made to intermediate accounts for excise duty. you may have excess CENVAT credit and want to pay the duty immediately and not wait for a fortnight. Features The information is shown in two group boxes: y Excise details This shows you the excise invoice type. and if there is not enough credit to cover it. choose If a company defaults in the fortnightly payment of CENVAT. The system automatically proposes which CENVAT accounts it is to debit the excise duty to. This is also the case for some export removals where you claim the refund from DGFTA. The system does not create any Part II entries. When you then run the fortnightly payment program. it debits the remainder to the personal ledger account (PLA). .Excise Duty Utilization Use When you create an excise invoice. If immediate utilization is off for the series group. the system generates Part II entries in the appropriate registers. When you save the invoice. Alternatively. You can decide from which register to pay the amount. the system picks up these invoices and allows payment of CENVAT. The cess component of excise can only be taken from the PLA. see Intercompany Excise Duty Utilization . Entries are posted into a dispatch register. which you can change if necessary by choosing also shows you how much excise duty will be charged on the sale. by choosing Taxes on Goods Movements p India p Basic Settings p Maintain Series Groups. y Balance utilization This shows you which CENVAT accounts the excise duty will be debited to.

Choose Calculate Tax. . follow this procedure: 1. whether they are for export under bond. or if they are for export. see Excise Bonding. and calculates the excise duty as normal. o Deemed exports The excise to be paid will be zero. deemed export. Bond. if you need to change the excise invoice type. the excise invoice is created with an export excise invoice number. Again. it controls: y y How the excise duty is calculated Which ARE documents you process the export with Activities When you come to create an excise invoice for an export sale. This information will be used when the Part II registers are downloaded. It does not generate any entries for the Part II register. When the system creates the excise invoice. it translates the assessable value into the local currency as at the excise invoice date. or export under rebate. or No bond. The system recalculates the excise duty according to the excise invoice type (see below). o Nonbonded exports The system applies the tax code defined in Customizing for Logistics ± General. it numbers it as a domestic excise invoice. To do so. 2. Features In the R/3 System. under Taxes on Goods Movements p India p Basic Settings p Determination of Excise Duty p Maintain Excise Defaults.Excise Invoice Type Use The excise invoice type denotes whether the goods are for the domestic market. What happens next depends on the excise invoice type: o Exports under bond The system sets the excise duty to zero and generates an outgoing excise invoice. when you set the excise invoice type. The excise invoice is created with an export excise invoice number. Set the excise invoice type to Deemed. For more information about these processes.

and the goods are delivered to another. Procedure . Enter the number. Canceling Excise Invoices Use You follow this procedure in order to cancel an outgoing excise invoice. From the SAP Easy Access screen. 4. A dialog box appears. The first company has to create an excise invoice. in this scenario.Excise on Intercompany Billing Documents Use The SAP System allows you to create an excise invoice for intercompany billing documents. Canceling Excise Invoices Use You follow this procedure in order to cancel an outgoing excise invoice. Procedure 1. year. For example. 3. Save the adjustment posting. It reverses any excise duty accounted for. assume one company code places a sales order. 2. It reverses any excise duty accounted for. inv. and series group of the excise invoice that you want to cancel. Choose Yes. choose Indirect Taxes p Excise JV p Create p Cancel exc. or Indirect Taxes p Sales and Outbound Movements p Excise Invoice Create/Change/Display p . with reference to the intercompany billing document.

as described under Sales from Factories. Sales from depots are handled differently from sales from factories because of excise law: Excise duty is payable when you send the goods from the factory to the depot. Choose Yes. y The item category NLN (standard transport order) so that it is relevant for billing You do this in Customizing for Sales and Distribution (SD).1. Sometimes when you make a final sale of goods from a depot. but it is not levied again when you sell the goods. You need to register the A certificate details in the RG 23D register and the excise recovered from the customer. price escalations could have happened with retrospective effect. Sales from Depots Purpose You may sell finished goods directly from the place of manufacture. in Customizing for Materials Management (MM). inv. or you may first ship them to a separate location for storage (a depot). or Indirect Taxes p Sales and Outbound Movements p Excise Invoice Create/Change/Display p . A dialog box appears. choose Indirect Taxes p Excise JV p Create p Cancel exc. from where you will sell them. 4. year. Process Flow . Prerequisites You have customized: y y Stock transport processing. Save the adjustment posting. and series group of the excise invoice that you want to cancel. 2. by choosing Taxes on Goods Movements p India p Business Transactions p Outgoing Excise Invoices p Assign Billing Types to Delivery Types. The second procedure is described here. Enter the number. by choosing Purchasing p Purchase Order p Set Up Stock Transport Order The copying control for copying stock transport order NL to excise invoice JEX Make this setting in Customizing for Logistics ± General. 3. In such scenarios you need to pay the extra excise duty at the factory using an A Certificate. From the SAP Easy Access screen. by choosing Sales p Sales Documents p Sales Document Item.

the amount of excise duty paid. following the Creating Excise Invoices for Stock Transfers 1. following the standard procedure. the range. 2. You assign excise invoices to the delivery or material document. From the SAP Easy Access screen. The standard pricing procedures for depot sales are J1INDEP (condition-based excise determination) and JDEPOT (formula-based excise determination). Choose More documents to go the excise invoice details screen. the excise base value. You create the sales order.1. Go back to the item details screen. 4. the item number . the excise invoice quantity. and the collectorate. 8. 5. the excise invoice number. . Choose Details. In the depot it is possible to have a separate excise invoice at line item level. the sending plant. The system automatically adjusts the excise accordingly. standard procedure. again. In the Material document field. the division. 4. the excise registration. if you have selected the wrong excise invoices. 7. 3. Enter the internal document number of the excise invoice from the factory. the excise invoice date. choose Indirect Taxes p Procurement p Excise Invoice p For Depot p Create/Change/Display. Alternatively. Save the excise invoice. You can change the receipt quantity to match the actual quantity received at the depot. The system creates an entry in register RG 23D. The system copies the items from the goods receipt document. You verify that you have selected the correct excise invoices and post them. if necessary. 2. 6. following the standard procedure. and the serial number of the Part II register entry with which the excise was paid). The system displays the information from the goods receipt. you can cancel the assignment. enter the goods receipt number and choose . The system copies the information to the line item (for example. You create the invoice. You create the delivery. the chapter ID. 5. for example. Enter the internal document number of the excise invoice sent by the factory. 3.

Save the excise invoice. When a valid ship-from is entered.) The ship-from registration details displayed can also be overwritten manually. RG 23C. as for with the vendor. You can enter these details here. 4. Choose Details. enter the goods receipt number and choose . The system copies the items from the goods receipt document. and excise duty amounts are defaulted from the purchase order. and personal ledger account (PLA) registers. You can also maintain the excise registration details for the ship-from party. the chapter ID. Go back to the item details screen. In the Material document field. The system creates an entry in register RG 23D. the division. (The delivering plant can be maintained as a ship-from in the system. Select an item and choose More documents to go the excise invoice details screen. 7. 6. so leave the internal document field blank. The vendor's invoice will show the details of the excise invoices through which excise has been paid for the item that is being dispatched. there will not be any excise invoice in the system. From the SAP Easy Access screen.Creating Excise Invoices for Direct Purchases 1. for example. and the collectorate. In the case of direct purchases. excise base value. the excise registration details copied from the vendor will be overwritten by the ship-from excise registration details. It also copies the vendor's excise invoice number and the serial numbers of the entries in the RG 23A. 3. For each item. The ship-from can be different from the vendor code. Enter the excise amount paid and the receipt quantity. 8. You also enter the Part II register serial numbers with which the excise duty was paid and the excise registration information from the original excise invoice. 2. The dealer's commercial invoice number can be stored in the vendor excise invoice number. Enter the internal document number of the excise invoice sent by the factory. the range. Creating Additional Excise Entries at Depots . the excise registration. You can change the excise invoice as long as it has not been used in any sales. choose Indirect Taxes p Procurement p Excise Invoice p For Depot p Create/Change/Display. as in this case the dealer himself will not have an excise invoice. You can change them if there is any difference. the sending plant. The system displays the information from the goods receipt. 5.

ship from. A hierarchy icon differentiates the additional lines for an item line. 7. vendor excise invoice number. Assigning Excise Invoices to a Delivery Use You follow this procedure to specify which excise invoices are to be assigned to a delivery from a depot (or other material document). Select the excise invoice you want. and choose . enter the internal excise invoice number at the depot along with the year. 4. You can maintain the A certificate number. The system creates an entry in register RG 23D. An excise invoice item can have multiple A certificates attached to it. From the SAP Easy Access screen. Save additional excise entry. After entering an A certificate you cannot delete the A certificate from the system. by making the appropriate Customizing settings in the Country Version India (CIN) Implementation Guide (IMG). choose Indirect Taxes p Sales/Outbound Movements p Excise Invoice p For Depot p Create/Change/Display p Delivery or Material Document p RG 23D Selection. 2. From the SAP Easy Access screen. Once an A certificate is used for removals then it cannot be changed. In the Internal exc. but you can change it until it is picked up during removals from the depot. The system displays the information from the excise invoice which has already been created at the depot. 5. 6. and additional BED. 2. The A certificates will have the same folio number as the original line item. You can also automate this procedure. Enter the delivery document number or the material number and choose . including the excise group.1.SED and CESS for a given RG 23D Folio. you can make the values zero so that they do not have an impact on the final excise value. field. 3. highlighting the RG 23D folio and serial numbers. 4. but the serial numbers will be different. AED . Folio number generation must be active for you to make use of this supplementary invoice functionality at depot. . date. Choose Excise invoice. using the batch selection program (J_1IJCHK). 5. Procedure 1. If some of the values in an A certificate are incorrect. 3. no. choose Indirect Taxes p Procurement p Excise Invoice p For Depot p Additional Excise Entry at Depot. and all the receipt against that excise invoice. Choose . inv.

If you selected any A certificates. You cannot select part of an A certificate. Prerequisites You have selected which excise invoices are to be assigned to the delivery and have posted the goods issue. Procedure 1. 4. From the SAP Easy Access screen. 9. You can only pick up an A certificate in its entirety. choose Indirect Taxes p Sales/Outbound Movements p Excise Invoice p For Depot p Create/Change/Display p Delivery or Material Document p Verify/Post. The system marks the original A certificates as updated. You can pick up any of the A certificates. The system also shows a list of the A certificates that can be used. 6. If everything is correct. so that they cannot be used for any other removals. Verifying and Posting Excise Invoices Assigned to Delivery Use You follow this procedure to verify that the correct excise invoices have been assigned to a delivery. but they must be for the same excise invoice. 7. Make sure that the information is correct. Go back to the item details screen. 3. 2. Save the data. 8. These are the excise invoices at the depot with a balance quantity. Specify what quantity to be used from each excise invoice.A list of excise invoices appears. the system also generates additional entries in the RG 23D register. The system recalculates the excise accordingly. Enter the number of the delivery that you want to verify and choose . Save the data. . Result The system creates an entry in register RG 23D and generates the depot excise invoice numbers. you can then post the delivery. Select the excise invoices that are relevant to the delivery.

but more prone to error. you create excise invoices in a single step or in two steps. Features Depending on your Customizing settings. If the excise clerks are more experienced. whether you want to create these excise invoices in one or two steps (see below). by choosing Taxes on Goods Movements p India p Basic Settings p Maintain Excise Registrations. but no postings are made. An excise supervisor then verifies that the invoice is correct and. in Customizing for Logistics ± General. In this case.The system updates the posting flag in the RG 23D register. You have also specified the maximum number of items allowed per excise invoice. Prerequisites You have specified. The R/3 System also allows you to create an excise invoice with reference to various other documents. the system automatically posts it in the background. . by choosing Taxes on Goods Movements p India p Basic Settings p Maintain Excise Groups. you may want to use the one-step procedure. You do so in Customizing for Logistics ± General. as follows: y y y Goods issue documents (for example. if so. for example) Factory excise invoice (for sales returns) In addition. Note that the functions for creating and canceling these excise invoices are different from those for other excise invoices. you can create an excise invoice without reference to any document at all. which is quicker. the excise invoice is created with reference to a delivery note or an invoice. when you create an excise invoice. per excise group. transfer postings) Vendor excise invoices (for when you return faulty goods to a vendor. the excise clerk first creates the excise invoice. posts it. Other Outward Movements Use In the standard procedure for creating outgoing excise invoices (see Sales from Factories). as follows: y y In the two-step procedure.

enter the following data: o o o o o Material Quantity Unit of measure Base value Excise duty 6. 2. If you are using the one-step procedure. Otherwise. 3. 4. Save the excise invoice. the system creates and posts an excise invoice. the system saves the information but does not make any postings: it now has to be verified. Enter line items for each of the materials to be included in the excise invoice. enter data as required. 5. From the SAP Easy Access screen. Choose . 7. Choose .Creating Excise Invoices Use This is the procedure that you follow to create an excise invoice for the less common types of goods movement. To pick the rate and amount from a specific excise invoice. Verifying and Posting Excise Invoices . choose Indirect Taxes p Sales/Outbound Movements p Excise Invoice p For Other Movements p Create/Change/Display p . On the selection screen. If you entered an internal document number. o Details group box Specify the vendor or customer that you are sending the invoice to. Procedure 1. including: o Reference group box Specify which document you want to create the excise invoice for and which excise group it is for. choose Get excise invoice. For each item. the system copies the item details from it.

The system generates the accounting documents. The excise duty that is to be posted is displayed at the foot of the screen. 6. Choose . To access the balance utilization. 4. choose . A dialog box appears. To display the balance available on the CENVAT accounts. 7. Save the excise invoice. Enter the internal document number of the excise invoice. asking you to confirm whether you want to delete the excise invoice. 3. Choose Release to accounting. 2. choose Indirect Taxes p Sales/Outbound Movements p Excise Invoice p For Other Movements p Post Excise Invoice. choose Indirect Taxes p Sales/Outbound Movements p Excise Invoice p For Other Movements p Create/Change/Display p . 5.Use You follow this procedure to verify that the information in an excise invoice that has already been created. From the SAP Easy Access screen. Procedure 1. From the SAP Easy Access screen. 3. 4. To print the excise invoice. Choose Yes. Canceling Excise Invoices 1. choose . The system displays the excise invoice. Creating Excise Invoices for Stock Transfers Use Follow this procedure to create an outgoing excise invoice for a stock transfer to another plant. . which you can change if necessary. 2. Enter the internal document number. For more information about this function. and to post it once you are satisfied. choose Account Balances. see Other Outward Movements.

Procedure
1. From the SAP Easy Access screen, choose Indirect Taxes p Sales/Outbound Movements p Excise Invoice p For Other Movements p Create/Change/Display p . 2. On the selection screen, enter data as required, including: o o o o 3. Choose Ref. doc. type: MATD (Material document) Doc. number: Transfer posting number Vendor: Leave this field blank Customer: The customer account number of the receiving plant .

The system copies the details from the transfer posting. 4. For each item: o o Enter the net assessable value Check and change the excise duty rates

5. Save the excise invoice. If you are using the one-step procedure, the system creates and posts the excise invoice. Otherwise, the system saves the information but does not make any postings: it now has to be verified.

Making a Transfer Posting
Use
In this procedure, you make a transfer posting for the goods ordered by another plant. For more information about this function, see Entering the Removal from Storage at the Issuing Plant.

Procedure
1. From the SAP Easy Access screen, choose Logistics p Materials Management p Inventory Management p Goods Movement p Transfer Posting. 2. Choose Movement type p Transfer posting p Plant to plant p To stock in transit. 3. Enter the number of the issuing plant and storage location. 4. Choose To purchase order. 5. In the dialog box, enter the number of the stock transport order that the receiving plant created and choose . 6. Check the data. 7. Save the transfer posting.

Making a Transfer Posting
Use
In this procedure, you make a transfer posting for the goods ordered by another plant. For more information about this function, see Entering the Removal from Storage at the Issuing Plant.

Procedure
1. From the SAP Easy Access screen, choose Logistics p Materials Management p Inventory Management p Goods Movement p Transfer Posting. 2. Choose Movement type p Transfer posting p Plant to plant p To stock in transit. 3. Enter the number of the issuing plant and storage location. 4. Choose To purchase order. 5. In the dialog box, enter the number of the stock transport order that the receiving plant created and choose . 6. Check the data. 7. Save the transfer posting.

Exports Under Excise Regulations
Use
Manufacturing plants are entitled not to pay any basic excise duty on export sales, as long as the goods are accompanied by an ARE document. The R/3 System handles AREs and the appropriate permit documents, such as export bonds and deemed export licenses. The R/3 System does not handle exports to Nepal and Bhutan, which are subject to separate legislation.

Features
The R/3 System allows you to process three types of exports: y y y Exports under bond Exports under claim for rebate Deemed exports

You must create an ARE document for all goods that you export under these schemes. You use the same function to process all ARE documents. For information about how to use the function in general, and which features are common to all ARE documents, see ARE Documents.

Exports Under Bond
Use
One of the ways of exporting goods without paying basic excise duty is to obtain an excise bond from the excise authorities and then fill out an ARE-1 document to go with every export.

Activities
Customizing
Carry out the IMG activities in Customizing for Logistics ± General, under Tax on Goods Movements p India p Business Transactions p Exports Under Excise Regulations p Exports and « p Printouts of ARE Documents.

Master Data
Enter your excise bonds in the system.

Day-to-Day Activities
In order to qualify for an exemption from excise duty, all exports must be accompanied by the appropriate paperwork, including an ARE-1 document, and you must complete the export within the export period. To process and track ARE-1s, use the ARE Documents functions, following the process described under ARE-1 Processing. You can only issue an ARE-1 under a bond. The system automatically keeps track of the bond balance. There are two ad-hoc reports that you can use for tracking bonds and ARE-1s: Bond Summary Report and Aging Analysis for ARE Documents.

Reporting
There are two statutory reports that you prepare at least once a month, Pro Forma of Running Bond Account and Statement Regarding Export of Excisable Goods.

Excise Bond
Definition

unless stated otherwise.A document that effectively licenses a manufacturing plant to remove goods from its premises without paying basic excise duty. Use Master Data When you obtain a bond from the excise department. The excise duty of the goods exported under bond cannot exceed the bond value. In the case of running bonds. the system automatically assigns it an internal bond number. the term "excise bond" also covers letters of undertaking. enter it in the system. Once an excise bond is no longer of any use to you. Bond Numbering Use When you create an excise bond. One further report. Each bond also has an official bond number. The system numbers each bond automatically. the system automatically warns you of any reservations that have already been made against the bond. When you post an ARE-1. you can close it. the balance increases again when you close the ARE-1. Day-to-Day Activities When you assign an ARE-1 to a bond. if it expires or if you have exhausted a fixed bond. An excise bond covers a fixed amount of excise duty. the bond balance decreases automatically. The system keeps track of the bond balance for you. gives you an overview of all of your bonds. the Pro Forma of Running Bond Account and the Statement Regarding Export of Excisable Goods. Activities . In the R/3 System. This prevents any users from using it afterwards. and all of the excise bond functions apply equally to letters of undertaking. for example. on condition that the goods are then exported. Reporting You can use the SAP System to prepare two statutory reports. the Bond Summary Report.

Fast Credit Use When you close an ARE-1 covered by a running bond. Master Data When you enter an excise bond. some local excise departments may allow you to credit the excise duty back as soon as you receive the countersigned ARE-1 back from the customs department. which reduces the bond balance. Features Every time you post an ARE-1 under a fixed bond. by choosing Tax on Goods Movements p India p Tools p Number Ranges. the bond is exhausted. you enter the official bond number manually. Activities . on the other hand. You can check the bond balance at any time in the bond master or the Bond Summary Report. When the balance reaches zero. use the Pro Forma of Running Bond Account. the system automatically credits the excise duty back to the bond (but see also Fast Credit). the system credits the excise duty back to the bond automatically. However. Bond Balance Use Each excise bond only covers a limited amount of basic excise duty. When you save the bond. the system automatically assigns it a new internal bond number. Every time you post an ARE-1. the system debits the excise duty stated on the ARE-1 to the bond. Running bonds.Customizing Maintain the number range object for the internal bond number in Customizing for Logistics ± General. are automatically replenished: Once an export is complete and the excise department sends you confirmation that the ARE-1 is correct. This procedure is known in the system as fast credit. the bond value. the system reduces the bond balance automatically. If you want to check the debits and credits on a running bond.

It serves to warn you. the system credits the excise duty to the running bond when you close the ARE-1. Processing Excise Bonds To access the individual functions shown in the table. enter this information in Customizing for Logistics ± General. With fast credit. the system credits the excise duty back to the running bond when you enter the Arrived Back date (see Updating ARE-1s). Day-to-Day Activities If you do not have a fast credit agreement. If the reservation amount is already over the bond balance. by choosing Tax on Goods Movements p India p Business Transactions p Exports Under Excise Regulations p Exports p Make Settings for ARE-1 Procedure. This reservation amount is for information only. Function Follow-on menu path What you should know . But since the reservation amount is for information only. the system displays the bond's reservation amount. from the SAP Easy Access screen. when you create an ARE-1. Reservations Use The system records the total amount of excise duty from ARE-1s that you have created (but not yet posted) under a given bond. that other clerks have already created other ARE-1s under a bond and that they intend to post them under this bond as well. When you do so.Customizing If you have a fast credit agreement with its local excise department. Activities When you create a new ARE-1 in the R/3 System. you specify which bond the ARE-1 is covered by. you might want to use a different bond. the decision is up to you. choose Indirect Taxes p Master Data p Excise Bond. if another one is available.

The shipping department sends the goods to be exported. You must have closed all of the ARE-1s that the bond covers. Before the goods can leave the country. . Process Flow 1. they have to go through the customs office. In the excise invoice. 3. The excise officer comes and checks that the goods match what is on the ARE-1. The clerk then posts the ARE-1 and prints out the requisite number of copies. You have received a sales order from a customer located abroad. you have already created the delivery and the outgoing excise invoice. He fills out Part A of the form (Certification by the Central Excise Office). 2. you have set the excise invoice type to Export Under Bond. He then calls the local excise department and asks them to send an excise officer to check the goods. together with the excise invoice and the ARE-1.Create an excise bond Change an excise bond Display an excise bond Cancel an excise bond p Create p Change p Display p Cancel You can only cancel a bond if you have not yet used it. In the R/3 System. The excise officer signs the ARE-1s and takes one copy with him. at the airport or at the port. Close an excise bond p Close ARE-1 Processing Purpose This procedure describes how you process ARE-1s for exports under bond. The excise clerk creates an ARE-1. for example. Prerequisites You have an excise bond from the government and have entered it in the system.

Enter the excise invoice that the ARE-1 is for and choose . The clerk sends the ARE-1 in the sealed envelope to the excise department. The clerk specifies which excise registers to pay the excise duty from. he updates the ARE-1 in the R/3 System. 7. b. he closes the ARE-1. If the ARE-1 is to cover more than one excise invoice. The process is now complete. In the top line: a. Assign an excise bond to the ARE-1. One of the copies is in a sealed envelope. When the excise clerk receives the confirmation. 2. Creating ARE-1s Use You create an ARE-1 when you want to export goods under bond. 6. Since the whereabouts of the missing goods cannot be accounted for. c.4. From the SAP Easy Access screen. plus interest. If he finds that there are fewer goods than stated on the ARE-1. the date when the ARE-1 arrived back at your company). The excise officer cross-checks this copy of the ARE-1 with his own copy. he sends the excise clerk a final confirmation. repeat step (c) for each of them. they no longer qualify for exemption from excise duty. When the goods arrive at customs. 5. the customs officer checks whether the excise invoice and the ARE-1 match the goods. d. Select Outgoing Excise Invoice. 3. he enters the shortfall in the ARE-1. . the excise clerk enters the shortfall as well. He fills out the various certification dates in the ARE-1 (for example. Procedure 1. When the excise clerk receives the ARE-1. Your company is therefore liable for the excise duty on the shortfall. Select Create ARE-1. He then fills out Part B of the ARE-1 (Certification by the Customs Officer) and sends it back to the excise clerk. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Exports p Central Processing p Create ARE-1. When he is satisfied that everything is correct. If the customs officer noted a shortfall in the quantity of goods. backdated to the date when you removed the goods from your premises.

5. For more information. you can still cancel the ARE-1. maintain any long texts required in the ARE-1. Their addresses will be printed on the ARE-1. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Exports p Central Processing p Change ARE-1. For more information. On the Additional Data tab. Save the ARE-1. Result The system: y y y Creates the ARE-1 and assigns it an internal ARE-1 number (see ARE Document Numbering) Increases the bond's reservation amount Sets the document status to In Process The next step you have to carry out in the system is to post the ARE-1. Select Change. . On the Addresses tab. see Long Texts. 7. 6. Changing ARE-1s Use Once you have created an ARE-1. This information will be printed on the ARE-1. In the top line: a. you can still change the following information until you post it: y y y y y Which excise bond it is assigned to Which excise invoices are assigned to it Which addresses are entered Any long texts Any package details Procedure 1. On the Package Details tab. This information will also be printed on the ARE-1. see Automatic Address Determination. enter the addresses of your local excise department and the customs department that will process the ARE-1. 2. enter any relevant information about how the goods are packaged. From the SAP Easy Access screen. If you need to.4.

2. .b. 4. On the Bond/UT-1 Detail tab. c. . Enter the internal ARE-1 number and choose 3. Procedure 1. enter the number of the excise bond that you want to cover the ARE-1 and the year in which it was issued. Procedure 1. Change data as required. Choose . you must specify which bond covers it. You can still make any changes that you need to before you post it. Save the ARE-1. 3. From the SAP Easy Access screen. you can post the ARE-1. If you want to see which other ARE-1s the bond is already assigned to. You can change the bond until such time as you post the ARE-1. Select ARE-1 Internal Document. Posting ARE-1s Use When you have created an ARE-1 and the excise officer has confirmed that all the details are correct. The system displays the bond details. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Exports p Central Processing p Post ARE-1. choose . Assigning Excise Bonds to ARE-1s Use When you create an ARE-1. Prerequisites You have obtained an excise bond from the excise department and you have entered in the system.

Select ARE-1 Internal Document. 4. 3. c. Procedure 1. When you receive the ARE-1. Select Post. the next step is to update it. c. In the top line: a. However. Updating ARE-1s Use When the goods arrive at customs. the customs officer checks them against the excise invoice and the ARE-1. He also fills out Part B of the ARE-1 (Certification by the Customs Officer) and sends you three copies of the ARE-1. Result The system: y y Assigns the ARE-1 an official ARE-1 number (see ARE Document Numbering) Clears the excise duty from the bond's reservation amount and debits it to the bond (see Bond Balance) You can no longer change the ARE-1. If there are any discrepancies in the quantity of the goods. In the top line: a. Enter the internal ARE-1 number and choose . enter the date and time that the goods are being dispatched. b. On the Certification Dates tab. Select Update. you can still reverse it. 3. b. he records them on the ARE-1. From the SAP Easy Access screen. 2. On the Certification Dates tab. Select ARE-1 Internal Document. Save the ARE-1. fill out the following dates as per the ARE-1: o o Arrived at Customs Countersigned by Customs . one in a sealed envelope. Enter the internal ARE-1 number and fiscal year and choose . you update the dates in the ARE-1 in the system to match what the customs officer has written on the ARE-1. Otherwise. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Exports p Central Processing p Update ARE-1. if need be.2.

You must now send the ARE-1 to your local excise department. Since the whereabouts of the missing goods cannot be accounted for. In the detail data. for example. Enter any shortfalls that the customs officer has noted on the ARE-1. enter the reason for the shortfall in the Reason Code field. backdated to the date when you removed the goods from your premises. or your PLA. he amends the quantity on the ARE-1. On the Document Details tab. enter the amended quantity. . Choose the line item that you want to adjust. 5. the customs officer finds that the quantities of the goods are lower than you have stated on the excise invoice and the ARE-1. 4. You must then enter the shortfall in the ARE-1. Result If the bond is a running bond and you have activated the fast credit function. Entering Shortfalls in ARE-1s Use If. the system credits the excise duty back to the running bond. 3. Procedure 1. On the Utilization tab. the system: y y Generates a Part II entry in the registers that you have specified (see Excise Registers) Creates an accounting document to debit the excise duty to the CENVAT reversal account and credit it to the appropriate register accounts as follows (assuming. You must therefore pay the excise duty on the shortfall. register RG 23C. on the Quantities tab.o Arrived Back 4. Result When you save the ARE-1. they no longer qualify for exemption from excise duty. specify whether you want to pay the excise duty from register RG 23A. Save the ARE-1. It calculates the interest due and displays it on the Utilization tab in the Interest Amount field. that you want to pay the excise duty and interest from Register RG 23A and the PLA): . and choose The system displays the shortfall in the Differential Qty field. plus interest. for any reason. 2.

You can divide the amount payable between the different registers as you wish. Select Reverse ARE-1. 3. In the top line: a. you can reverse it if necessary until such time as customs has countersigned it. From the SAP Easy Access screen. c. 2.y Credits this excise duty back to the bond (see Bond Balance) Reversing ARE-1s Use When you have posted an ARE-1. specify which excise registers you want to pay the excise duty and the interest from. Result The system: y y Generates a Part II entry in the registers that you have specified (see Excise Registers) Creates an accounting document to debit the excise duty to the CENVAT reversal account and credit it to the appropriate register accounts as follows (assuming. you must pay the excise duty plus interest (see Interest Calculation). choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Exports p Central Processing p Reverse ARE-1. On the Document Details tab. you forego the exemption from paying the excise duty that was due on the materials when you removed them from your premises. enter the reason for reversing the ARE-1. that you want to pay the excise duty and interest from Register RG 23A and the PLA): . 5. On the Utilization tab. By reversing an ARE-1. Procedure 1. Save the ARE-1. b. Consequently. for example. 4. Enter the internal ARE-1 number and choose . Select ARE-1 Internal Document.

4. Procedure 1.y Credits this amount of excise duty back to the bond (see Bond Balance) You can no longer change the ARE-1. Result The next step is to close the ARE-1. . Select ARE-1 Internal Document. b. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Exports p Central Processing p Update ARE-1. Closing ARE-1s Use When the excise department sends you confirmation that the ARE-1 is correct. 2. Select Update ARE-1. This closes the ARE-1. Sending ARE-1s to Excise Departments Use Once the customs officer has returned the ARE-1 to you. Enter the internal ARE-1 number and choose . On the Certification Dates tab. you send it to the excise department so that they can cross-check it against their original ARE-1. In the top line: a. From the SAP Easy Access screen. Save the ARE-1. 3. fill out the Sent to Excise Dept field. you record the date in the system. c.

following the process described under ARE-3 Processing. You can only issue an ARE-3 with reference to a customer's license. b. In the top line: a. under Tax on Goods Movements p India p Business Transactions p Exports Under Excise Regulations p Deemed Exports and « p Printouts of ARE Documents. use the ARE Documents functions. Deemed Exports Use You can ship deemed exports to any customers in possession of a deemed export license without paying any basic excise duty. To process and track ARE-3s. From the SAP Easy Access screen. Enter the internal ARE-1 number and choose . Select Update ARE-1. Activities Customizing Carry out the IMG activities in Customizing for Logistics ± General. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Exports p Central Processing p Update ARE-1. and you must complete the deemed export within the rewarehousing period. 2. including an ARE-3 document.Procedure 1. all deemed exports must be accompanied by the appropriate paperwork. Master Data Enter your customers' deemed export licenses in the system. . Select ARE-1 Internal Document. c. Result The ARE-1 is now complete. Save the ARE-1. Day-to-Day Activities In order to qualify for an exemption from excise duty. 3. The system automatically keeps track of the license balance. fill out the Export Confirmed field. 4. On the Certification Dates tab. but only if the goods are accompanied by an ARE-3 document.

There are two ad-hoc reports that you can use for tracking licenses and ARE-3s: Deemed Export License Summary and Aging Analysis for ARE Documents. In the ARE-3. you can enter it there as well. they send you a copy. the system numbers each license automatically. The license is not a blanket exemption. If. you create an ARE-3 to go with the goods shipment. Use Master Data When your customers obtain a deemed export license from the excise authorities. Deemed Export License Definition A license issued by the excise authorities under which an exporter can procure goods from a manufacturer without payment of basic excise duty. you close it. Ltd. It only applies to purchases of specific quantity or value of specific goods from a specific vendor. 20 personal computers from Computer World Pvt. you specify which license the goods are covered by. for example. When the license balance is exhausted. a customer gets an extension on the expiry date of the license from the excise authorities. The system reduces the license balance accordingly. . later on. License Numbering Use When you create a deemed export license. you can close it. Reporting You can keep track of your customers' licenses using the Excise Bonding License Summary. You enter your customers' licenses in the system. When a license is exhausted. the system automatically assigns it an internal license number. Day-to-Day Activities When you sell a customer some goods that are covered by a license.

. you enter the official license number manually. you specify which quantification method each uses. Master Data When you enter a license.Each license also has an official license number. by choosing Tax on Goods Movements p India p Tools p Number Ranges. Features The excise authorities issue several different license types with different quantification methods. License Balances Use Each deemed export license only covers a limited quantity of goods or goods to a limited value. you specify the license type and the quantity or value of the goods covered. by choosing Tax on Goods Movements p India p Business Transactions p Exports Under Excise Regulations p Deemed Exports p Maintain License Types. Activities Customizing Maintain the number range object for the internal license number in Customizing for Logistics ± General. The license type controls which quantification method applies to the license. the remaining quantity or value decreases automatically. When you save the license. Master Data When you enter a license in the R/3 System. Activities Customizing Define the license types in Customizing for Logistics ± General. the system automatically assigns it an internal license number. Every time you post an ARE-3 against a license. The system thus keeps track of the license balances for you. depending on its quantification method. When you define the license types in the system (see Customizing below).

If you reverse an ARE-3. You can check the license balances at any time in the license master or in the Deemed Export License Summary. the license balance does not go back up. choose Indirect Taxes p Master Data p Deemed Export License. the system automatically debits the value or quantity of the goods stated in the ARE-3 to the license. If a license expires and the excise authorities grant your customer an extension on the validity period. Day-to-Day Activities The system will not allow you to assign an invalid license to an ARE-3. from the SAP Easy Access screen. Activities Master Data When you enter a license. License Validity Use Deemed export licenses are only valid for a limited period of time. enter the extension date in the license master. Otherwise. Note that this field only appears once the license expires. The system ensures that you can only use licenses if they are valid. and allows you to extend their validity period if required. Processing Deemed Export Licenses To access the individual functions shown in the table. you enter the validity period as stated on the original document. The license balance decreases accordingly. you close the license.Day-to-Day Activities When you post an ARE-3. Function Create a license Follow-on menu path p Create What you should know The system assigns the license an internal license .

3. The shipping department sends the goods to the customer. You have received a sales order from the customer for goods covered by this license. you have already created the delivery and the outgoing excise invoice. He also prints out the ARE-3 and encloses a copy with the delivery. Change a license p Change You can only change a license if you have not already assigned it to an ARE-3. The system sets the status to Canceled. Prerequisites Your customer has supplied you with a copy of its deemed export license and you have entered the license in the system. he enters the shortfall in the ARE-3. together with the excise invoice and the ARE-3. . posts it. In the R/3 System. 2. The export clerk creates an ARE-3 and. The system sets the status to Closed. when he is ready. In the excise invoice. If he finds that there are fewer goods than stated on the ARE-3. you have set the excise invoice type to Deemed Exports. Process Flow 1. he checks whether the excise invoice and the ARE-3 match the goods. ARE-3 Processing Purpose This procedure describes how you process ARE-3s for deemed exports. Close a license p Close Close a license when all of the ARE-3s that it has covered are closed. Display a license Cancel a license p Display p Cancel You can only cancel a license if you have not yet used it.number and sets the license status to Active. When the customer's warehouseman receives the goods.

The process is now complete. 4. For more information. maintain any long texts required in the ARE-3.He then fills out Part 2 of the ARE-3 (Certificate of Warehousing by the Consignee) and sends it back to the excise clerk. 4. This information will also be printed on the ARE-3. This information will be printed on the ARE-3. see Long Texts. backdated to the date when you removed the goods from your premises. Creating ARE-3s Use You create an ARE-3 when you want to send a customer a deemed export. repeat step (c) for each of them. On the Additional Data tab. Select Create ARE-3 Select Outgoing Excise Invoice. see Automatic Address Determination. 2. the excise clerk enters the shortfall as well. For more information. Since the whereabouts of the missing goods cannot be accounted for. he updates the ARE-3 in the R/3 System. Enter the excise invoice that the ARE-3 is for and choose . The clerk specifies which excise registers to pay the excise duty from. He fills out the various certification dates in the ARE-3 (for example. On the Addresses tab. c. they no longer qualify for exemption from basic excise duty. In the top line: a. If the ARE-3 is to cover more than one excise invoice. plus interest. When the excise clerk receives the ARE-3. From the SAP Easy Access screen. 3. the date when the ARE-3 arrived back at your company). d. On the Package Details tab. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Deemed Exports p Central Processing p Create ARE-3. enter any relevant information about how the goods are packaged. b. enter the address of your local excise department. . If the warehouseman noted a shortfall in the quantity of goods. 5. Assign the deemed export license to the ARE-3. You must therefore pay the excise duty on the shortfall. Its address will be printed on the ARE-3. 6. Procedure 1.

assign the line items the deemed export license that covers them.7. 2. Procedure . . In the top line: a. Select ARE-3 Internal Document. b. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Deemed Exports p Central Processing p Change ARE-3. Save the ARE-3. Change data as required. Select Change. Changing ARE-3s Use Once you have created an ARE-3. 4. Assigning Deemed Export Licenses to Line Items Use When you create an ARE-3. Save the ARE-3. Result The system creates the ARE-3 and assigns it an internal ARE-3 number (see ARE Document Numbering). you can still change the following information until you post it: y y y y y Which export licenses are assigned to the line items Which excise invoices are assigned to it Which addresses are entered Any long texts Any package details Procedure 1. From the SAP Easy Access screen. Enter the internal ARE-3 number and choose 3. c.

Select ARE-3 Internal Document. Procedure 1. However. select the line item that you want to assign the export license to. 2. enter the internal license number and year. On the Certification Dates tab. c. 3. Posting ARE-3s Use When you have created an ARE-3 and you are ready to ship the goods. On the License tab in the detail data. you can still reverse it. Select Post. From the SAP Easy Access screen. if need be.1. In the item overview. Result The system: y y Assigns the ARE-3 an official ARE-3 number (see ARE Document Numbering) Deducts the quantity or value of the goods from the license (see License Balances) You can no longer change the ARE-3. Save the document. Updating ARE-3s Use . b. enter the time that the date and time that the goods are being dispatched. Otherwise. In the top line: a. 4. 2. you can post and print the ARE3. Enter the internal ARE-3 number and choose . You can still make any changes that you need to before you post it. the next step is to update it. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Deemed Exports p Central Processing p Post ARE-3.

choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Deemed Exports p Central Processing p Update ARE-3. . Select ARE-3 Internal Document. enter the amended quantity. You must therefore pay the excise duty on the shortfall. Procedure 1.When the goods arrive at the customer¶s premises. your customer finds that the quantities of the goods are lower than you have stated on the excise invoice and the ARE-3. In the detail data. Enter any shortfalls that the customer has noted on the ARE-3. he enters the shortfall on the ARE-3. 2. The customer also fills out Part 2 of the ARE-3 (Certification of Warehousing by the Consignee) and sends you a copy. c. Save the ARE-3. If there are any shortfalls in the quantity of the goods he records them on the ARE-3. on the Quantities tab. Select Update. they no longer qualify for exemption from excise duty. . When you receive the ARE-3. Enter the internal ARE-3 number and choose 3. and choose . 4. From the SAP Easy Access screen. In the top line: a. Procedure 1. Since the whereabouts of the missing goods cannot be accounted for. Enter the Arrived Back date. the customer checks them against the excise invoice and the ARE-3. Choose the line item that you want to adjust. Entering Shortfalls in ARE-3s Use If. backdated to the date when you removed the goods from your premises. plus interest. You must then enter the shortfall in the ARE-3. for any reason. 2. 5. Result The ARE-3 is now complete. you update the ARE-3 in the system to match what the customer has written on the ARE-3. b. On the Certification Dates tab: o o Enter the Countersigned by Customer date as per the ARE-3.

you can reverse it if necessary until such time as you enter the rewarehousing date. 3. enter the reason for the quantity change in the Reason Code field. On the Utilization tab. you must pay the excise duty plus interest (see Interest Calculation). or your PLA. Select ARE-3 Internal Document. specify whether you want to pay the excise duty from register RG 23A. Enter the internal ARE-3 number and choose . that you want to pay the excise duty and interest from Register RG 23A and the PLA): Reversing ARE-3s Use When you have posted an ARE-3. In the top line: a. the system: y y Generates a Part II entry in the registers that you have specified (see Excise Registers) Creates an accounting document to debit the excise duty to the CENVAT reversal account and credit it to the appropriate register accounts as follows (assuming. Result When you save the ARE-3. By reversing an ARE-3. 2. 3.The system displays the shortfall in the Differential Qty field. specify which excise registers you want to pay the excise duty and the interest from. you forego the exemption from paying the excise duty that was due on the materials when you removed them from your premises. On the Document Details tab. From the SAP Easy Access screen. b. Procedure 1. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Deemed Exports p Central Processing p Reverse ARE-3. Consequently. c. On the Utilization tab. . Select Reverse ARE-3. register RG 23C. 4. It calculates the interest due and displays it on the Utilization tab in the Interest Amount field. for example.

the list shows the header data. Save the document. select Display ARE-3s Referred To. Output For each license. Features To access the report. from the SAP Easy Access screen. the materials covered by the license. On the Document Details tab. and the license balance. enter the reason for reversing the ARE-3. Result The system: y y Generates a Part II entry in the registers that you have specified (see Excise Registers) Creates an accounting document to debit the excise duty to the CENVAT reversal account and credit it to the appropriate register accounts as follows (assuming. 4. choose Indirect Taxes p Sales/Outbound Movements p Excise Bonding p Reports p Deemed Export License Summary. Selection Enter selection criteria as required. Deemed Export License Summary Use You use this report to prepare a summary of the deemed export licenses that you have entered in your system. that you want to pay the excise duty and the interest from Register RG 23A and the PLA): y Does not reinstate the value or quantity of the goods to the license You can no longer change the ARE-3.You can divide the amount payable between the different registers as you wish. If you want to see which ARE-3s the licenses have been used for. 5. . for example.

As such it is integrated with Sales and Distribution (SD) and Materials Management (MM). For more information about the different transactions available. and Deemed Exports. the list also shows the ARE-3s assigned to each license. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p «. Features The screen consists of the following areas: . For information about the individual procedures involved. If the list shows an ARE-3 without an official ARE-3 number.If you selected Display ARE-3s Referred To. It is thus integrated with Financial Accounting (FI). that means that the ARE-3 has only been created and not yet posted. so that they can create and process ARE-1s and ARE-3s used to execute exports and deemed exports. There are several different transactions under this menu path. Any entries that the system makes in relation to an ARE document. see Transaction Configuration. The following documentation describes the functions common to all types of exports under excise regulations. which in turn you create on the basis of deliveries. are also shown in the transaction. from the SAP Easy Access screen. ARE Documents Use This function is for use by excise clerks and excise supervisors. Integration This function allows you to create ARE documents using outgoing excise invoices as a reference document. Exports Under Claim for Rebate. in Part II of the excise registers RG 23 A and C. see Exports Under Bond. To access the ARE Documents function.

Total Duties Certification Dates Bond/UT-1 Detail In exports under bond. shows which bond the export is covered by. Tab Document Details Use Basic header data. When you create an ARE document. When you process an ARE document that you have already created. you specify the reference document in this area. Total amounts of basic excise duty in the ARE document and any changes made by customs (ARE-1s) or the customer (ARE-3s) Various dates used to track the progress of the ARE document. Header Data This area consists of four tabs. such as the internal and official ARE numbers and the document status. you enter the ARE document number.Top Line This is where you specify what document you want to process. This tab is only shown for exports under bond. Excise Invoice Summary The excise invoices that the ARE document covers. each with information that relates to the whole of the excise document. .

including various long texts to be printed on the ARE document. Any information about the packages that needs to be printed on the ARE document. Information the quantity of goods in the excise invoice. and how much of it has already been credited to the CENVAT accounts. each with information about a particular item. and how much of this quantity have entries in Parts I and II of the excise registers. To process an item. The excise duty on the item. The license that this item is covered by (deemed exports only). Tab Item Quantities Use Basic information about the material itself. RG 23C. Additional Data Part II Item Overview This area lists all of the items in the excise invoice. Duty Rates Duty Values License Package Details Reference Documents Additional Data Fields for any additional information that you might want to enter. this time at item level. The rates of excise duty on the item. Detail Data This area consists of seven tabs. Note that this tab is not displayed if there are no Part II entries. you click the item number and process it in the detail data . Fields for any additional information that you might want to enter. but you process the items in the detail data area. Any entries in Part II of the excise registers RG 23A. or PLA made as a result of your updating the quantities in the ARE document. Transaction Configuration Use . The other SAP documents associated with the item.Addresses Shows the addresses of the local excise department and the customs office that is handling the ARE document.

You can assign these transactions to excise clerks or supervisors. maintain the number range object J_1IARE1 for ARE-1s. maintain the number range object J_1IINTNUM in Customizing for Logistics ± General. which corresponds to the serial numbers assigned to you by the excise department for the ARE document forms. and J_1IARE3 for ARE-3s. Day-to-Day Activities . you can change them in Customizing for Logistics ± General. by choosing Tax on Goods Movements p India p Business Transactions p Exports Under Excise Regulations p Transaction Configuration. which is the number that the system uses to identify the ARE document. or updating and displaying ARE documents). For a list of the transaction codes provided. and an official number. ARE Document Numbering Use In the R/3 System. To activate official numbering. each ARE document has two numbers: an internal number. Create a separate number range for each series group. creating and displaying ARE documents. The individual processing transactions restrict the users to specific processing modes only (for example. Each transaction code controls how users can process ARE documents and which reference documents they can use. for example. see Transaction Codes. Activities Customizing To activate internal numbering.You can execute the ARE Documents function using different transaction codes. Activities Customizing If the delivered settings do not meet your requirements. by choosing Tax on Goods Movements p India p Tools p Number Ranges. Features The standard R/3 System comes with one central processing transaction and three individual processing transactions for each type of ARE document: y y The central processing transactions allow users to carry out all functions on the ARE document and are suited to a system administrator.

Automatic Address Determination Use When you print ARE documents. in Customizing for Logistics ± General.When you create an ARE document. Day-to-Day Activities When you create an ARE document. Activities . by choosing Tax on Goods Movements p India p Master Data p Maintain Postal Addresses. the mode of transport or the export seal number. for example. they must show the address of your local excise department and the customs department that will be handling the export. you can enter this information using the long text function and it will be printed at the appropriate positions. Details tab. Both numbers are displayed on the Doc. You cannot change either of the numbers manually. Activities Customizing Enter the name and address of every excise department and customs department that you have dealings with in Customizing for Logistics ± General. You can change it if you want to. by choosing Tax on Goods Movements p India p Master Data p Maintain Series Groups. When you create an ARE document. the system automatically enters the address of the local excise department that you have assigned to the series group. The address data is shown on the Addresses tab. the system automatically assigns it an internal document number. The system only assigns the ARE document an official number when you post it. Define a default local excise department address for each series group. Long Texts Use The forms that ARE-1s and ARE-3s are printed on contain spaces for various pieces of information.

one for ARE-1s and one for ARE-3s. Day-to-Day Activities When you create an ARE document and you want to enter a long text for it. Two SAPscript forms are provided. The system prints out the entire form with the details filled in from the ARE that you have created.Customizing Country Version India comes with long texts already customized to go with the ARE-1 and ARE-3 forms. by choosing Tax on Goods Movements p India p Business Transactions p Excise Bonding p Exports Under Excise Regulations p Make Settings for ARE-1 Procedure and « p Deemed Exports p Make Settings for ARE-3 Procedure. you can define other long texts in Customizing for Logistics ± General. on the Additional Data tab. choose Long Text. in Customizing for Logistics ± General. However. Activities Customizing Check the output type settings provided in Customizing for Logistics ± General. Assign the output type to the ARE-1s and ARE-3s. the texts appear at the appropriate positions. by choosing Tax on Goods Movements p India p Tools p Long Texts. specify how many copies of each ARE document you want the system to print. if you need to. In the dialog box. Printouts of ARE Documents Use You can print out ARE-1s or ARE-3s on blank A4 paper. These forms use the same printing program and output type. Since multiple copies are required of each ARE document. the system automatically prints out the number of copies needed. by choosing Tax on Goods Movements p India p Business Transactions p Excise Bonding p Exports Under Excise Regulations p Printouts of ARE Documents. . and type the text in the field next to it. In the same activities. When you print out the document. Features Country Version India comes with all the settings you need to print out ARE-1s and ARE-3s in the appropriate format. double-click the sort of long text that you want to enter. The output type is J1IB.

choose . Then. Similarly. . You can track which AREs are coming to the end of their export or rewarehousing periods using the Aging Analysis for ARE Documents. Export Periods and Rewarehousing Periods Use Exports under bond must be completed within the export period defined by the excise authorities. the system prints out the number of copies that you have specified. as follows: y When you post an ARE. when you save the ARE. you must repay the excise duty that you posted to the CENVAT account for the goods. Exports under claim for rebate must also be completed within this time or you will not be able to reclaim the duty. If not. enter the extension date in the ARE document (see Extending Export Periods and Rewarehousing Periods). To do so. y When you display an ARE. Enter the rewarehousing period in Customizing for Logistics ± General. by choosing Tax on Goods Movements p India p Business Transactions p Exports Under Excise Regulations p Exports. The system keeps track of these periods for you automatically. select Print ARE Document on the Document Details tab. Note that this function is only available in display mode. by choosing Tax on Goods Movements p India p Business Transactions p Exports Under Excise Regulations p Deemed Exports. y y If the extension is granted. Day-to-Day Activities If an ARE-1 or ARE-3 reaches the end of the period without being closed. reverse the ARE-1 or reverse the ARE-3. you can apply to the excise department for an extension. otherwise you no longer qualify for the exemption on the basic excise duty. deemed exports must also be completed within the allotted rewarehousing period.Day-to-Day Activities There are two ways of printing a document. Activities Customizing Enter the export period in Customizing for Logistics ± General.

4. Procedure 1. 2. Save the document. Enter the internal ARE document number and choose . Result Once you have entered the extension date.Extending Export Periods and Rewarehousing Periods Use If you have not closed an ARE document within the prescribed export period or rewarehousing period and you have obtained an extension from the excise department. you can continue processing the ARE document as normal. Select Update. In the top line: a. fill out the Extended Until field. Features . you can enter the new date in the document. 3. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Exports or Deemed Exports p Central Processing p Update ARE-1 or Update ARE-3. From the SAP Easy Access screen. On the Certification Dates tab. Select ARE-1 Internal Document or ARE-3 Internal Document. b. Interest Calculation Use Whenever you have to pay the excise duty originally exempted by an ARE document. c. This field only appears once an ARE document exceeds the export period or rewarehousing period. backdated to the date on which you removed the goods from your premises. you also have to pay interest on that amount. The system calculates the amount of interest due automatically.

Interest is due whenever you reverse an ARE document (for example. when an ARE-1 exceeds the export period and the excise authorities do not grant you an extension). On the Excise Invoice Summary tab. Choose . you can still add additional excises to it until such time as you post it. Day-to-Day Activities The system automatically calculates interest when: y y You enter shortfalls in ARE-1s or enter shortfalls in ARE-3s You reverse an ARE-1 or reverse an ARE-3 You can overwrite the excise duty and interest that the system proposes. Procedure 1. Adding Excise Invoices to AREs Use If you have already created an ARE document. Activities Customizing Maintain the interest rates in Customizing for Logistics ± General. It is also due when a customs officer updates the quantity of goods on the ARE-1. or a customer updates the quantity of goods on an ARE-3. The applicable interest rates are announced by the excise authorities. Removing Excise Invoices from AREs Use . 2. enter the excise invoice number and year in the Additional Excise Invoices field. by choosing Tax on Goods Movements p India p Business Transactions p Exports Under Excise Regulations p Exports p Make Settings for ARE-1 Procedure and « p Deemed Exports p Make Settings for ARE-3 Procedure.

Canceling AREs Use If you have already created an ARE document but not yet posted it. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Exports or Deemed Exports p Central Processing p Cancel ARE-1 or Cancel ARE-3. b. Save the document. In the top line: a. which ARE-1s are approaching the end of their export period and need to be extended. Aging Analysis for ARE Documents Use You use this report to prepare a list of all ARE documents by their status. On the Excise Invoice Summary tab. you can cancel it if you need to. from the SAP Easy Access screen. 3. Enter the internal ARE number and choose . Procedure 1. you can do so until such time as you have posted it. choose Indirect Taxes p Sales/Outbound Movements p Exports Under Excise Regulations p Reports p Aging Analysis for ARE Documents. Selection . Choose . It allows you to see which documents need to be processed within a certain amount of time. 2. Procedure 1. c. 2. Features To access the report. Select ARE-1 Internal Document or ARE-3 Internal Document. for example.If you have assigned an excise invoice to an ARE document and you wish to remove it. enter the excise invoice number and year in the Additional Excise Invoices field. From the SAP Easy Access screen. Select Cancel.

display ARE-1 Create. display ARE-1 Cancel. Then either enter a date range or enter a period. Enter data as follows: a. display ARE-1 Update. Output Each document is assigned a status as follows: y y y : Activity is overdue : Activity is due today : Activity has been completed The list is formatted using the SAP List Viewer: see this documentation for more information about navigating and formatting options within the list. 2. change. update. display ARE-3 Cancel. cancel. update. In the Documents field. depending on what status you have selected. The period can refer to the next so many days. display ARE-3 Create. change. b. cancel. enter the status of the documents that you want to see. display ARE-3 Update. display ARE-1 Create. change. change. or the past so many days. Choose . display ARE-3 Create bond Change bond Display bond .1. Transaction Codes Transaction J1IA101 J1IA102 J1IA103 J1IA104 J1IA301 J1IA302 J1IA303 J1IA304 J1IBN01 J1IBN02 J1IBN03 Function Create.

. when you transfer money to your personal ledger account (PLA) using a TR6 challan. Exemption from excise duty may be granted by the excise authorities under certain circumstances. and those that you send to your vendors against your purchase orders. for example. You can record the forms that your customers send you against their sales orders.J1IBN04 J1IBN05 J1ILIC01 J1ILIC02 J1ILIC03 J1ILIC04 J1ILIC05 J1IANX18 J1IANX19 J1IARE_AGE J1IBONSUM J1ILICSUM Cancel bond Close bond Create license Change license Display license Cancel license Close license Pro Forma of Running Bond Account Statement Regarding Export of Excisable Goods Aging Analysis for ARE Documents Bond Summary Report License Summary Report Form Tracking Use You use this function to record and monitor forms relating to tax concessions. You can also use these functions for monitoring other routine activities. Features Forms for concessional sales tax must be submitted by the buyer after the goods have been delivered or after it has paid the invoice. The exporter has to provide the vendor with proof of export (form AR3A). If the buyer is unable to furnish the certificate at the appropriate time. for example. the concessional rate is granted against the issue of C-forms. the buyer has to produce certain statutory forms to claim concessional rates of excise duty or exemptions. In such cases. material supply should be at the normal rate of sales tax or excise duty. In the case of interstate concessional sales tax rate sales. on exports or deemed exports.

the document which the adjustment posting is to refer to ± either an internal document. you specify the reference document. such as a material document or a subcontracting challan ± or an external document. Features Each of the different types of adjustment postings are documented separately. Excise Details When you proceed to the detail screen. there are a number of functions that are available. as follows. If the adjustment has to be remitted immediately. However. You also specify which registers are affected by the posting. the adjustment will have to be remitted to the authorities on a fortnightly basis. that is. such as an incoming excise invoice. from the SAP Easy Access screen. The adjustment will then be included when you run the Remittance of Excise Duty Fortnightly report. the system automatically shows the line items from the reference document. Reference Document On the initial screen of the transaction. You can make adjustment postings to account for: y y y y y Scrap Materials that you have not used in production Additional excise paid by vendors Money that you have transferred to your personal ledger account Other transactions You can also use this function to cancel excise invoices. choose Indirect Taxes p Forms Tracking p Create/Change/Display. When you edit the excise details.Activities To access the form tracking function. CENVAT Adjustment Postings Use You use these functions if you need to make an adjustment posting to any of your CENVAT accounts. You specify how much excise duty is to be adjusted and which CENVAT accounts the adjustment posting is to be made to. In many cases. they all work on the same principle. depending on the type of adjustment posting: y Assigning excise invoice to line items . if it is an internal document. you specify which register is affected.

The system displays the information from the material document.y y Specifying which G/L accounts are to be adjusted Displaying balances of CENVAT accounts When you save your changes. Procedure 1. Enter data as required. 5. Choose . 3. If the posting does not have to be remitted immediately. choose Indirect Taxes p Excise JV p Create p Matl writeoff. Specify which G/L accounts are to be posted to. o CENVAT account selection group box Specify which account is affected by the adjustment posting is for. 2. Save the adjustment posting. select Fortnightly payment. . Adjust the excise duty for each line item either: o o Manually By assigning the line item to an excise invoice 6. Making Adjustment Postings for Scrap Use You follow this procedure if you have scrapped a material and want to reverse the excise duty debited to your CENVAT account. 7. From the SAP Easy Access screen. 4. Adjust the posting date as necessary. the system creates an accounting document to make the appropriate postings. including: o Document number Enter the number of the document that you used to scrap the material.

5.Making Adjustment Postings for Materials Not Used in Production Use You follow this procedure if you have not used a material in the production process and want to reverse the excise duty debited to your CENVAT account. If the posting does not have to be remitted immediately. Procedure 1. Adjust the posting date as necessary. 4. o CENVAT account selection group box Specify which account is affected by the adjustment posting is for. From the SAP Easy Access screen. Choose . including: o Document number Enter the number of the material document that the adjustment posting is to refer to. 7. choose Indirect Taxes p Excise JV p Create p Matl nonprod. Making Adjustment Postings for Additional Excise Paid by Vendors Use You follow this procedure if a vendor has increased the amount of excise duty that it originally charged you and you want to debit the difference to your CENVAT account. . select Fortnightly payment. Specify which G/L accounts are to be posted to. 3. The system displays the information from the material document. Adjust the excise duty for each line item either: o o Manually By assigning the line item to an excise invoice 6. Enter data as required. 2. Save the adjustment posting.

Enter data as required. In the Document number field. 6. 7. Enter the CVD amount in the BED amount field. 3. Save the adjustment posting. choose and enter the excise duty in the totals fields at the foot of the screen. 5. 4. . including the document number.Procedure 1. and have posted the corresponding accounting document. Enter the amount of excise duty in either of the following ways: o o To enter line items for different materials and the excise duty accordingly. choose and enter the line items in the table. Adjust the posting date as necessary. If the duty qualifies as countervailing duty (CVD): a. Select CVD applicable. To enter the excise duty only. From the SAP Easy Access screen. using a TR6 challan. choose Indirect Taxes p Excise JV p Create p TR6 challan. enter then number of the document sent to you by the vendor. choose Indirect Taxes p Excise JV p Create p Additional excise. Making Adjustment Postings for Money Transferred to PLA Use You follow this procedure to make an adjustment posting when you transfer money to your personal ledger account (PLA). Procedure 1. 2. 2. Choose . Prerequisites You have already transferred the money to your PLA at the bank. Specify which G/L accounts are to be posted to. b. 8. You can enter either the challan number or the number of the accounting document. Enter data as required. From the SAP Easy Access screen.

inv. Enter data as required. year. choose Indirect Taxes p Excise JV p Create p Other adj. It reverses any excise duty accounted for. choose Indirect Taxes p Excise JV p Create p Cancel exc. Enter the number. 3. Save the adjustment posting. Save the adjustment posting. 2. Enter the amounts against the accounts that you require. You can only use an external document as your reference document. Choose Yes. and series group of the excise invoice that you want to cancel. From the SAP Easy Access screen. the system displays the information from it. Choose . 4. A dialog box appears.3. 5. Making Adjustment Postings for Other Transactions Use You follow this procedure if you want to make an adjustment posting that does not fall into any of the other categories of adjustment offered by this function. If you entered the accounting document number. Procedure 1. including: . 2. Canceling Excise Invoices Use You follow this procedure in order to cancel an outgoing excise invoice. 4. or Indirect Taxes p Sales and Outbound Movements p Excise Invoice Create/Change/Display p . From the SAP Easy Access screen. Procedure 1.

choose and enter the excise duty in the totals fields at the foot of the screen. Calculates how much of the excise duty from the excise invoice should be apportioned to the line item and enters it in the excise duty fields.o Document number Enter the number of the external document that you want to refer to. . To enter the excise duty only. The system displays a list of all the excise invoices that you have posted from this vendor for this particular material. 3. Assigning Excise Invoices to Line Items Use When you make an adjustment posting. 6. . Adjust the posting date as necessary. Specify which G/L accounts are to be posted to. Enter the amount of excise duty in either of the following ways: o o To enter line items for different materials and the excise duty accordingly. o CENVAT account selection group box Specify which account is affected by the adjustment posting is for. Procedure 1. 4. 7. select Fortnightly payment. you follow this procedure if you want to specify the original excise invoice associated with a line item. Choose . The system displays the information from the material document. Select the excise invoice that you want and choose The system: o o Enters the excise invoice document number in the Ref. 5. doc. Select the line item that you want and choose Get excise invoice. Save the adjustment posting. If the posting does not have to be remitted immediately. 2. choose and enter the line items in the table. field (Reference document).

you have to specify which CENVAT accounts are to be adjusted. 2. you should also overwrite the reference document number with an explanatory text. Prerequisites You have specified whether you want the users to be able to add extra debit accounts (see below). The system automatically apportions INR 100 to the line item that is to be reversed. You pick one for 20 plates of glass with BED at INR 200. and adjust the other postings so that the credits and debits match. if necessary. Choose Determine G/L accounts. Procedure 1. Specifying Which CENVAT Accounts to Adjust Use When you make an adjustment posting. 3.If you then overwrite these amounts. To close the dialog box. if you need to. . since there is no point in maintaining the link to the reference document anymore. Displaying CENVAT Account Balances To display the balances of your CENVAT accounts. You have three excise invoices from the same vendor to choose from. You have a line item with ten plates of glass that you have broken and are to be scrapped. 4. Add another account. choose Balances. in Customizing for Logistics ± General. The accounts that are displayed depend on the excise group and the CENVAT account that you entered on the selection screen. Enter a business area and cost center. choose . A dialog box appears that shows how much will be posted to which G/L accounts. by choosing Taxes on Goods Movements p India p Basic Settings p Maintain Company Codes.

and reporting. including Customizing. For more Creating Activity Groups ("activity group" is the old term for information about roles in general. in all applications. It also covers the maintenance of excise master data. see "role"). Excise Manager (Materials Management) . CIN Customizing and Master Data Maintenance Technical name: SAP_CIN_SUPER_USER Tasks This role covers all the Customizing activities relating to Country Version India (CIN). This is the role that all the menu paths given in this documentation are based on. Roles The following documents describe the roles delivered with Country Version India (CIN). India Localization Technical name: SAP_CIN Tasks This role covers all of the tasks associated with Country Version India (CIN).The system displays the balances only of the CENVAT accounts that are affected by your G/L postings. dayto-day operations.

post. Activities in Materials Management (MM) In Customizing and master data. change. It includes Customizing activities. all day-to-day operations. and reporting. the Excise Manager is authorized to: y y y y y Work with the CIN Implementation Guide (IMG) Use the health check tool Define number ranges for excise invoices Maintain excise master data Make retrospective price amendments In your day-to-day operations. but only one Customizing activity. It includes all day-to-day operations and reporting. the Excise Supervisor is authorized to: .Technical name: SAP_CIN_MM_MANAGER Tasks This role covers all administrative tasks in Country Version India (CIN) that relate to excise duty in the areas of procurement and subcontracting. display. and cancel incoming excise invoices Capture excise invoices at depots Complete subcontracting challans and perform quantity reconciliation Post excise invoice journal vouchers Track forms Activities in Financial Accounting (FI) The Excise Manager can: y y Create the excise registers Transfer outstanding CENVAT credit on capital goods to the appropriate CENVAT accounts Excise Supervisor (Materials Management) Technical name: SAP_CIN_MM_SUPERVISOR Tasks This role covers most of the tasks in Country Version India (CIN) that relate to excise duty in the areas of procurement and subcontracting. Activities in Materials Management (MM) In Customizing and master data. this role allows you to: y y y y y Capture.

y y y Define number ranges for excise invoices Maintain excise master data Make retrospective price amendments In your day-to-day operations. change. display. Activities in Materials Management (MM) The Excise Clerk can: y y Capture excise invoices (of all types) Track forms Excise Manager (Sales and Distribution) Technical name: SAP_CIN_SD_MANAGER Tasks . and cancel incoming excise invoices Capture excise invoices at depots Execute all activities relating to subcontracting challans Post excise invoice journal vouchers Track forms Activities in Financial Accounting (FI) The Excise Supervisor can: y y Create the excise registers Transfer outstanding CENVAT credit on capital goods to the appropriate CENVAT accounts Excise Clerk (Materials Management) Technical name: SAP_CIN_MM_CLERK Tasks This role covers the tasks relating to capturing incoming excise invoices. this role allows you to: y y y y y Capture. post.

It does not. this role allows you to: y y y y y Create and verify outgoing excise invoices for other movements Create excise invoices in batches Post excise journal vouchers Print excise invoices Track forms In reporting. Activities in Sales and Distribution (SD) In master data. include Customizing. day-to-day operations. the Excise Manager is authorized to: y y y y Work with the CIN Implementation Guide (IMG) Use the health check tool Maintain excise master data Make retrospective price amendments In your day-to-day operations. It includes the maintenance of master data. and reporting. day-to-day operations.This role covers the administrative tasks in Country Version India (CIN) that relate to excise duty in the area of sales. and reporting. the Excise Supervisor is authorized to: y y Maintain excise master data Make retrospective price amendments In your day-to-day operations. Activities in Sales and Distribution (SD) In Customizing and master data. this role also allows you to: y y Remit excise duty using the fortnightly utilization program Print 57AE returns Excise Supervisor (Sales and Distribution) Technical name: SAP_CIN_SD_SUPERVISOR Tasks This role covers the tasks in Country Version India (CIN) that relate to excise duty in the sales area. this role allows you to: y y Create and verify outgoing excise invoices for other movements Create excise invoices in batches . It includes all Customizing activities. however.

and display subcontracting challans. change. this role also allows you to: y y Remit excise duty using the fortnightly utilization program Print 57AE returns Excise Clerk (Sales and Distribution) Technical name: SAP_CIN_SD_CLERK Tasks This role covers the tasks relating to the creation of excise invoices.y y y Post excise journal vouchers Print excise invoices Track forms In reporting. Activities in Sales and Distribution (SD) The Excise Clerk can: y y y Create excise invoices for other movements Print excise invoices Track forms Subcontracting Clerk Technical name: SAP_CIN_SUBCONTRACTING_CLERK Tasks The Subcontracting Clerk is authorized to create. Bonding Clerk Technical name: SAP_CIN_BONDING_CLERK .

change. Activities in Financial Accounting (FI) In Customizing. update. the TDS Manager can: y y Prepare annual returns for TDS (Classic TDS and Extended Withholding Tax) Prepare MIS report (Extended Withholding Tax) . change. and reporting.Tasks This role covers all tasks relating to exports under excise regulations. display. the TDS Manager is authorized to: y y Work with the CIN Implementation Guide (IMG) Use the health check tool In day-to-day operations. day-to-day operations. Activities in Materials Management (MM) The Bonding Clerk can: y y y Create. display. you can: y y y y y Carry out all the activities relating to the remittance of tax withholdings Make adjustment postings Print and cancel TDS certificates for vendors Post and clear withholding tax on clearing accounts (Extended Withholding Tax only) Print TDS certificates for customers In reporting. and cancel ARE documents Execute all the associated reports TDS Manager Technical name: SAP_CIN_TDS_MANAGER Tasks This role covers all the activities in Country Version India (CIN) that relate to tax deducted at source (TDS). It includes all Customizing activities. and cancel excise bonds and deemed export licenses Create.

but not Customizing. Activities in Financial Accounting (FI) In day-to-day operations. the TDS Supervisor can: y y y y y Carry out all the activities relating to the remittance of tax withholdings Make adjustment postings Print and cancel TDS certificates for vendors Post and clear withholding tax on clearing accounts (extended withholding tax only) Print TDS certificates for customers In reporting. Activities in Financial Accounting (FI) The TDS Clerk can: y y Carry out all the activities relating to the remittance of tax withholdings (Classic TDS and extended withholding tax) Post and clear withholding tax on clearing accounts (extended withholding tax only) . It includes all day-to-day operations and reporting.TDS Supervisor Technical name: SAP_CIN_TDS_SUPERVISOR Tasks This role covers the administrative activities in Country Version India (CIN) that relate to tax deducted at source (TDS). you can: y y y Prepare annual returns for TDS (Classic TDS and Extended Withholding Tax) Prepare MIS report (Extended Withholding Tax) Archive TDS documents TDS Clerk Technical name: SAP_CIN_TDS_CLERK Tasks This role covers the day-to-day operations relating to tax deducted at source (TDS).

Register Maintenance Clerk Technical name: SAP_CIN_REGISTER_CLERK Tasks This role covers all the activities relating to the preparation of excise and sales tax registers. Transaction Codes for India Transaction J1I2 J1I3 J1I5 J1IEX J1IEX_C J1IEX_P J1IF01 J1IF11 J1IF12 J1IF13 J1IFQ J1IFR J1IH J1IIN J1IJ J1INJV J1INREP Action Prepare a sales tax register Create outgoing excise invoices in batches Update the RG 1 and Part I registers Incoming Excise Invoices (central transaction) Capture an incoming excise invoice (excise clerk) Post an incoming excise invoice (excise supervisor) Create a subcontracting challan Change a subcontracting challan Display a subcontracting challan Complete. or recredit a subcontracting challan Reconcile quantities for subcontracting challans List subcontracting challans Make a CENVAT adjustment posting Create an outgoing excise invoice Assign excise invoices to a delivery for sales from depots Adjust withholding tax Item Reprint a withholding tax certificate for a vendor . reverse.

J1IQ J1IR J1IS J1IU J1IW J1IX J2I8 J2IU J2I9 J1IG J1IGA J2I5 J2I6 Year-End Income Tax Depreciation Report Download register data Process an excise invoice (outgoing) for other movements Process exemption forms Verify and post an incoming excise invoice Create an incoming excise invoice (without reference to purchase order) Transfer excise duty to CENVAT account Remit excise duty fortnightly Monthly CENVAT return Excise invoice entry at depot Create additional excise entry at depot Extract data for excise registers Print excise registers .

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