SD CIN (Country India Version)

SD2018 - SD CIN (Country Version India)
v1.0
SD CIN (Country India Version)
India SAP CoE, Slide 1
SD CIN (Country Version India)

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Purpose
CIN as the term denotes means Country Version India. It comprises of
functionalities designed for the laws and business practices pertaining
to the country, over and above the generic SAP system functionalities.
It contains India Specific functions, mainly related to Financials and
Logistics. The main areas are as follows:
Excise duty and the central value-added tax system (CENVAT)
The tax levied on the difference the output and the input value.
This is also referred as MODVAT. Manufacturer can setoff the
excise duty paid on their inputs materials against their output duty.
Withholding tax (also known as tax deducted at source)
Sales tax
Maintenance and printing of statutory excise registers
Use
Country Version India comes ready configured with all the settings,
Sales processing CIN covers the following Indian statutory requirements.
1. Calculation of Excise duty based on Material and Chapter ID combination
2. Calculation of Excise bases on concessional forms
3. Calculation of Output Tax based on Interstate Transactions
4. Maintenance and printing of Excise / Sales Tax details of customer on Invoices
5. Usage of Pre-printed Invoice Numbers
6. Excise Invoice Number should start with No.1 for every government fiscal year in Depot
7. Maintenance of RG23D register in Depots
8. Reproduction of all Excise details on depot Invoices with respect to source document
9. Maintaining separate Folio number for all incoming material in Depot
10. Maintain Entry number for each Folio for outgoing material in Depot
11. Levy of service tax on all services rendered from Factory / Depot
12. Payment of Cess on certain category of Material if applicable
13. Maintenance of excise rules.
The customer and vendor masters have been enhanced to store taxation details
specifically for India.
It provides predefined sample pricing procedures, including all taxes, and
settings for automatic account determination to the appropriate Excise Accounts .
Challenges
1.
2.
3.
Tax structure for same material varies as state changes

Excise rate is different for different products
Printouts / forms need to develop as per laws

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Most of the country-specific functions for India relate to Financials and Logistics to
meet Statutory requirements such as The main areas are as follows:
Financial Accounting
The country template for India comes with its own chart of accounts, CAIN. It contains
all accounts common to most businesses in India. It also takes into account the
requirements of Schedule VI of the Companies Act 1956.
The country template also contains settings for automatic accounting postings
The country template for India comes with its own financial statement version, BAIN.
Material management
A business document, in India, that your vendor sends you when it delivers excisable
goods. It lists the goods and states how much excise duty applies on them. Your use the
excise invoice to claim back the excise that you have paid from the excise authorities.
Sales & distribution

Country Version India comes with four pricing procedures as follows: 1) JINFAC (Sales
from manufacturing plants) 2) JINEXP (Export sales) 3) JINDEP (Sales from depots) 4)
JINSTK (Stock transfers)
Excise Duty
The system covers all types of excise duty, all of which need to be calculated and
reported separately:
1.
2.
3.
4.
5.
Basic excise duty (BED)

Special excise duty (SED)
Additional excise duty (AED)
National contingent calamity duty (NCCD)
Cess
The system of excise duties is complex, and differs from the generic functions for taxes on
sales and purchases in a number of ways:
The rate of duty on a single material can vary according to which chapter ID it is listed
under.
You cannot offset all excise duty on inputs against outputs.
Depots cannot offset any input duties at all. Manufacturing plants can only offset input
duties if they can show that the input materials are used to produce output materials.
You have to record all excise duty (inputs and outputs) in excise registers.
Your company may only be entitled to offset a portion of the duty on inputs against duty on
outputs.
Companies that qualify as small-scale industries can levy excise duty on outputs at reduced
rates, so if you purchase materials from these companies, you must calculate a different rate
of excise duty.
Sales Tax
This is a tax levied on the sale of a product. It is applied on the gross price of goods,
inclusive of excise duty.
There are two types of sales tax.
1) Interstate sales (for example, between Karnataka and Tamil Nadu) are subject to
central sales tax (CST). The tax rate is the same throughout the country. Intrastate
sales,
2) On the other hand, are subject to local sales tax (LST), which differ from state to
state. SAP R/3 handles these using tax jurisdiction codes.
A percentage of input LST can be deducted against output LST, depending on what
percentage of goods you have purchased in the state in question.
The system calculates the sales taxes automatically, when you enter the tax codes.
A report is also available that tells you how much sales tax you have paid and
collected.

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CIN Customizing
Agenda
Global Settings
Accounting
Sales and Distribution
Reports
CIN Customizing
Agenda
Global Settings
Maintain Company Code
Menu IMG Logistic - General Tax on Goods Movements India Basic

Path Settings Maintain Company Code Settings
Maintain Excise Registrations
An entity in India that is entitled by law to produce any goods

liable to excise is assigned its own excise registration number.
The excise registration reports to the excise authorities.

Path Settings Maintain Excise Registrations
Maintain Plant

Path Settings Maintain Plant Settings
Maintain Excise Groups
An unit within an excise registration in

India, which keeps its own set of excise
records. The excise group is purely an
internal organizational unit. Each excise
group keeps records of all the
transactions that have to be reported to
the excise authorities.
When the time comes to present these
records to the authorities, the excise
registration compiles the information
from all of its excise groups.

Path Settings Maintain Excise Groups
Maintain Series Groups
Series groups help in maintaining multiple number ranges for the outgoing excise
documents. Based on excise regulations and exemptions from the excise authorities,
multiple number series can be maintained for the outgoing documents, but each of
these series have to be declared to the excise authorities.

Path Settings Maintain Series Groups
Maintain Excise defaults
In this customizing settings, we define which tax procedure and pricing condition
types are used in calculating excise taxes

Path Settings Determination of Excise Duty Maintain Excise Defaults
Tax Indicator Maintenance

Path Settings Maintain Excise Duty Indicators
CIN Customizing
Agenda
Accounting
Define G/L Account for Taxes
Menu IMG Logistic - General Tax on Goods Movements India

Path Account Determination Define G/L Accounts for Taxes
Maintain Transaction Accounts
In this settings, we define which excise accounts (for excise duty and CENVAT) are to
be posted for the various transaction types

Path Account Determination Specify Excise Accounts per Excise
Transaction
Assign G/L Accounts
In this IMG activity, we assign the excise and CENVAT accounts to G/L accounts. This
is maintained for a combination of Excise Group, Company Code and Chart of
Accounts

Path Account Determination Specify G/L Accounts per Excise Transaction
Maintain Minimum Balances
In customization over here, we maintain minimum balances in company excise

accounts. When the balances in these accounts, during utilization falls below the
level, the system automatically utilizes funds in the PLA account.

Path Business Transactions Utilization Maintain Minimum Balances for
Excise Accounts
CIN Customizing
Agenda
Sales and Distribution
Assign Excise Invoice ..
Invoices are created by referring to either Proforma Excise Invoices or Customer

Invoices. Hence in this IMG activity, you specify which Billing document types you
use as a reference for CENVAT utilization, and assign them to the appropriate Delivery
Types.

Path Business Transactions Outgoing Excise Invoices Assign Billing
Types to Delivery Types
Utilization Determination
In this IMG activity, We specify which CENVAT accounts are to be debited by the
Fortnight Utilization of CENVAT. Here it is specified as to which CENVAT account the
duty must be debited to by default.

Path Business Transactions Utilization Utilization Determination
Maintain Default
We can specify which excise group and series group, we want to appear by default
for different combinations of Sales Organization, Distribution Channel, Division and
Shipping Point. This activity is optional unless we require the system to automatically
create excise invoices when we create a customer invoice.

Path Business Transactions Outgoing Excise Invoices Maintain Default
Excise Groups and Series Groups
Tax Determination Long Texts
This customization controls the different types of long texts that caompany want to
be able to maintain in various excise transactions.
Menu IMG Logistic - General Tax on Goods Movements India Tools

Path Long Texts
Number Ranges
Maintenance of number range for all CIN objects
Menu IMG Logistic - General Tax on Goods Movements India Tools

Path Number Ranges
CIN Customizing
Agenda
Reports
Maintain SAP Script Layout
In this IMG activity, for each company code, we can specify which SAP Script forms
the system prints the excise registers with.

Path Business Transactions Excise Registers Specify SAPscript Forms
CIN Master Records

Agenda
Master Records
Excise Master
1. Maintain Chapter ID
All the materials that are required for manufacturing and subsequently those which are
manufactured are classified under the Central Excise Law into chapters. These
chapters are further subdivided into headings and subheadings, which together form
the chapter ID.
T Code : J1ID
Excise Master
2. Material Chapter ID combination
If it is a input material then select the tab Raw material. If it is capital item then
select Assets.
If it is a in-house produced material then select RG1.
Select GR X ref to specify whether credit is allowed only for single goods
receipt or multiple goods receipt with single credit or multiple goods receipt with
multiple credits.
In the declared column enter X if the material is declared to excise. Also enter
the date of declaration.
Excise Master
3. Material Assessable value
In this section we enter the assessable value of material which is used for the
purpose to determine how much excise you can credit to CENVAT account when
creating a subcontracting challan.
Enter the combination plant, material number, valid from , currency , Assessable
value.
Excise Master
4 CENVAT Determination
In this section you have to enter the input and output relationship of the material with
combination of plant, default indicator for Modvat. Companies are required to file with the
Excise authorities, a list containing the excisable finished products manufactured and the
excisable input materials required for such production, to avail Modvat.
It is possible that an input material may be used in the production of more than one
finished product. However, if such a material is mainly used for the manufacture of a
particular finished product then the input material is identified to be the default material. The
default indicator is marked for such material.
Excise Master
5 Customer Excise details
In this section the Customer excise details are maintained.
The Customer number, his excise registration details, ECC no, Excise Range, Excise Division,
Excise Commissioner ate, CST no, LST no, Permanent account number, Excise Indicator for
Customer, SSI status (if he is a SSI vendor), Type of Customer and CENVAT (This is applicable for
SSI vendor only who has participated in the CENVAT scheme).
The Customer excise details appropriate excise indicator should be selected from the drop down
menu of tab. In the type of Customer you have to select appropriate tab i.e. manufacturer, or First
stage dealer, Exporter, etc.
Excise Master
6 Excise Indicator for Plant
Excise Master
7 Excise Indicator for Plant and Customer
In this section the combination of excise indicator of plant and excise indictor
will determine excise duty applicable
Excise Master
8 Excise tax rate
In this section you maintain the combination of chapter ID and final indicator
(combination of plant and vendor indicator), valid from date , valid to date and
percentage of excise duty
This indicator and chapter ID combination determines the excise duty for the material.
CIN Transactions
Agenda
Transactions
SD CIN - TRANSACTIONS
Creation of Excise Invoice for factory sale
Purpose
This transaction is used for creating excise invoice with reference to a billing
document.
Prerequisites
The excise invoice has to be created with reference to a billing document
The billing document has to be released to FI
The posting date of the billing document

Menu Path
Transaction J1IIN: SAP India Localization Menu
Indirect Taxes -> Sales/Outbound movements -> Excise Invoice -> Outgoing excise
create/change/display
Transaction Code
J1IIN
Use transaction J1IIN Create /Change/ Display Excise Invoice
Click on From Billing to

create an Excise invoice
with reference to a billing
document
Enter the billing document number and posting date and press Enter
Billing document
number
Posting Date
Enter the excise group and series group

Save the excise invoice
Excise group
T Code J1IIN
Series
Group
Excise invoice Cancellation
Purpose
Cancellation of outgoing Excise invoice.
Prerequisites
Excise Document number

Excise series group
Document year
Transaction Code
J1IH
Execute J1IH Cancel Excise Invoice
Enter Excise invoice number, Document year and series group
Enter document number,

Document year and
Excise series group
Following screen will appear, click on
to enter
Following screen will appear, click on

to confirm the G/L accounts to be posted.
Click on
after checking the G/L accounts and save the document using CTRL + S
Depot excise invoice capture
Purpose
Capturing Mother Excise invoice at depot.
Prerequisites
Material Document number

Depot Excise group
Factory Excise series group
Document year
Ship from
Transaction Code
J1IG
Execute transaction J1IG to capture Mother Excise invoice
Enter Depot Excise group and Material Document number and press Enter
Following Screen will appear, Enter Ship From, Factory invoice number and
Factory Excise series group, tick on own factory
Click on details button to go into item details, check the quantity and
excise duty and save the invoice
Outgoing Depot excise invoice
Purpose
Excise invoices for delivery at depot
Prerequisites
Delivery number
Depot Excise group
Depot series group
Transaction Code
J1IJ
Execute J1IJ transaction to get following screen
Enter Delivery number, excise group and series group
Enter into the details screen as shown below
Click on the invoice button to select the mother invoices for reference
Select the mother invoice to be referenced and click on the
continue button
Check the referenced quantity and excise duty values and go back to the
overview screen
Save the depot excise invoice
Note down the Depot excise invoice number as displayed
Process Name: Creation of Excise Letter of under taking for export factory sale
Creation of Excise Bond (Letter of under taking)
Purpose
This transaction is used for creating Letter of undertaking.

Prerequisites
Letter of undertaking to be given to local excise range and the number for the
letter of undertaking to be obtained.
Menu Path
Transaction J1ILN: SAP India Localization Menu

Indirect Taxes -> Master data -> Excise Invoice -> Excise Bond
Transaction Code
J1IBN01 - Create
Use transaction J1IBN
Save the Excise Bond using Ctrl + S
Note down the Excise bond number
Enter
Plant code
Bond type: Letter of

undertaking
Number for LOU as

provided by excise range
Enter Bond Value
Enter type of dispatch
Enter Execution
date
Enter Surety as: No
Creation ARE document for export sales under Letter of under taking
Purpose
This transaction is used for creating ARE1 document with reference to an Excise
invoice document
Prerequisites
The ARE1 document to be generated with reference to excise invoice.
Excise invoice has to be generated for sales under letter of undertaking.
Menu Path
Indirect Taxes -> Sales/Outbound Movements -> Exports Under Excise
Regulations -> Exports -> J1IA101 Create/Change/Post/Update/Cancel/Display/Reverse ARE-1
Use transaction J1IA101
Enter Dispatch date and time.
Enter Date of
dispatch
Enter time
of removal
Enter Internal Bond number
Post the document by clicking on
Note down the ARE1 document number
Enter internal
Bond number
Updation of ARE1 document
Purpose
This transaction is used for updating and closing ARE1 document.
Prerequisites
The ARE1 document to be posted in the system.
Menu Path
Indirect Taxes -> Sales/Outbound Movements -> Exports Under Excise
Regulations -> Exports -> J1IA101 Create/Change/Post/Update/Cancel/Display/Reverse ARE-1
Transaction Code
J1IA101 - Create/Change/Post/Update/Cancel/Display/Reverse ARE-1
Use transaction J1IA101

Enter Arrived at customs date,
Sent to Excise dept,
Countersigned by customs date,
Export Confirmed date.
Save the document using Ctrl + S to update the ARE1 document.
Update the relevant

data as shown
CIN Registers
Agenda
Register Entry/Update
EXCISE REGISTERS - Update

Excise Registers maintained are:
RG1
RG23A
RG23C
PLA
RG23D
Purpose
Updating Registers for issues and receipts Goods
Prerequisites
Company code
Plant
Excise group
Posting date
Receipt/Issue Excise classification codes
Register type to be updated
Transaction Code
J1I5

Creation of Excise Registers
You follow this procedure to create the excise registers.
Three steps are to be followed for creation and printing of the excise registers
Updation of Registers (RG1)

The updation of registers includes receipts and issues.
The classification of receipts and issues is done by selecting the appropriate
classification as per the table given below.
Now the stock in production location is moved in RG1 by transfer posting

(movement type 311)

Enter Company code, Plant, Excise group, Posting date, Excise classification for the receipt
or issue.
Enter Company code,

Plant, Excise group
Enter Posting date for

Material document
Select Document
Posting date Button
Enter
Classification
Select Register
A list of material documents relevant for Register updation are short listed
as shown below.
Select the relevant Material document and click on
to simulate.
Click on
to update the material document to Register.
Will appear at the bottom of the screen.
Select the relevant

entry to be updated
EXCISE REGISTERS - Extraction

Purpose
Extracting entries updated to Register for issues and receipts of excisable

goods.
Prerequisites
Excise group
Start date
End date
Register Type
Receipt/Issue Excise classification codes
Transaction Code
J2I5

Following screen will appear on executing transaction J2I5.
Enter Excise group, Start date, End date, and radio button for Register type.
Press F8 for extracting Register.
Following screen will be displayed on successful

extraction of Register.
Following screen will be displayed on successful extraction of Register.
SD CIN (Country version India)

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Create of Master Data for Tax calculation
J1ID
Excise rate maintenance
FV11
Maintain Tax Condition Records
VK11
Maintain Condition Record
J1IBN01
Create Excise Bond
FTXP
Tax Code maintenance
VK11
Tax condition record maintenance
LetMe
Transactions
J1IEX
Capture Incoming Excise Invoice
J1IIN
Capture outgoing Excise invoice for Sales order
J1IJ
Capture outgoing Excise invoice for Depot Sales
J1IS
Capture outgoing Excise invoice for Other goods movement
J1IP
Print Excise Invoice
J2IU
Post Fortnightly Payment
J1IA101
Create / Change ARE1 for central processing
J1IA102
Create / Change ARE1 for Individual processing
J1IA301
Create / Change ARE3 for central processing
J1IA302
Create / Change ARE3 for Individual processing
J1I2
Sales Tax Register
J1I5
Update Excise Register
SD CIN (Country version India)

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CIN TABLES
All CIN Tables start with J_1I and J_2I. There are 129
tables. A few of them are:
J_1IEXCHDR
J_1IEXCDTL
J_1ICHPTER
J_1IEXGRPS
J_2IEXTRCT
J_2IUTZDAT
(Header data of Excise Documents)

(Line item data of Excise Documents)
(Chapter ID master)
(Excise Groups)
(Data extract tables for Excise Registers)
(Utilization Date)
HelpMe
Additional Info
How to add new statutory printing documents for taxation
Smart forms need to be created for all the statutory forms exactly as per legal
requirements
Need to assign all the forms to required documents types by using output
determination.

SD CIN (Country India Version)

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SD2018 - SD CIN (Country Version India)

SD CIN (Country India Version)

India SAP CoE, Slide 1

SD CIN (Country Version India)

SD CIN (Country Version India)

India SAP CoE, Slide 4

Tax structure for same material varies as state changes

India SAP CoE, Slide 6

SD CIN (Country Version India)

SD CIN (Country Version India)

Sales & distribution

India SAP CoE, Slide 8

Basic excise duty (BED)

India SAP CoE, Slide 10

SD CIN (Country Version India)

India SAP CoE, Slide 12

India SAP CoE, Slide 13

Maintain Company Code

Menu IMG Logistic - General Tax on Goods Movements India Basic

Maintain Excise Registrations

An entity in India that is entitled by law to produce any goods

Menu IMG Logistic - General Tax on Goods Movements India Basic

Menu IMG Logistic - General Tax on Goods Movements India Basic

Maintain Excise Groups

An unit within an excise registration in

Menu IMG Logistic - General Tax on Goods Movements India Basic

Maintain Series Groups

Menu IMG Logistic - General Tax on Goods Movements India Basic

Maintain Excise defaults

Menu IMG Logistic - General Tax on Goods Movements India Basic

Tax Indicator Maintenance

Menu IMG Logistic - General Tax on Goods Movements India Basic

India SAP CoE, Slide 21

Define G/L Account for Taxes

Menu IMG Logistic - General Tax on Goods Movements India

Maintain Transaction Accounts

Menu IMG Logistic - General Tax on Goods Movements India

Assign G/L Accounts

Menu IMG Logistic - General Tax on Goods Movements India

Maintain Minimum Balances

In customization over here, we maintain minimum balances in company excise

Menu IMG Logistic - General Tax on Goods Movements India

Sales and Distribution

India SAP CoE, Slide 26

Assign Excise Invoice ..

Invoices are created by referring to either Proforma Excise Invoices or Customer

Menu IMG Logistic - General Tax on Goods Movements India

Menu IMG Logistic - General Tax on Goods Movements India

Menu IMG Logistic - General Tax on Goods Movements India

Tax Determination Long Texts

Menu IMG Logistic - General Tax on Goods Movements India Tools

Maintenance of number range for all CIN objects

Menu IMG Logistic - General Tax on Goods Movements India Tools

India SAP CoE, Slide 32

Maintain SAP Script Layout

Menu IMG Logistic - General Tax on Goods Movements India

CIN Master Records

India SAP CoE, Slide 34

India SAP CoE, Slide 36

India SAP CoE, Slide 37

India SAP CoE, Slide 38

India SAP CoE, Slide 39

India SAP CoE, Slide 40