SD2018 - SD CIN (Country Version India) v1.


SD CIN (Country India Version)

¥India SAP CoE, Slide 1

SD CIN (Country Version India)
1 2

PrepareMe TellMe

ShowMe LetMe HelpMe


¥India SAP CoE, Slide 2

SD CIN (Country Version India)
1 2

PrepareMe TellMe

ShowMe LetMe HelpMe


¥India SAP CoE, Slide 3

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

¥India SAP CoE, Slide 4

Calculation of Excise duty based on Material and Chapter ID combination 2. Maintaining separate Folio number for all incoming material in Depot 10. Calculation of Output Tax based on Interstate Transactions 4. Maintenance and printing of Excise / Sales Tax details of customer on Invoices 5. and settings for automatic account determination to the appropriate Excise Accounts . Maintain Entry number for each Folio for outgoing material in Depot 11. 1. Usage of Pre-printed Invoice Numbers 6. Slide 5 . It provides predefined sample pricing procedures. Excise Invoice Number should start with No. Levy of service tax on all services rendered from Factory / Depot 12.1 for every government fiscal year in Depot 7. Payment of Cess on certain category of Material if applicable 13. Reproduction of all Excise details on depot Invoices with respect to source document 9. ¥India SAP CoE. including all taxes.Use Country Version India comes ready configured with all the settings. Maintenance of excise rules. Maintenance of RG23D register in Depots 8. The customer and vendor masters have been enhanced to store taxation details specifically for India. Sales processing CIN covers the following Indian statutory requirements. Calculation of Excise bases on concessional forms 3.

2. 3. Slide 6 .Challenges 1. Tax structure for same material varies as state changes Excise rate is different for different products Printouts / forms need to develop as per laws ¥India SAP CoE.

SD CIN (Country Version India) 1 2 PrepareMe TellMe 3 ShowMe LetMe HelpMe 4 5 ¥India SAP CoE. Slide 7 .

BAIN. It contains all accounts common to most businesses in India. in India. 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) ¥India SAP CoE. It also takes into account the requirements of Schedule VI of the Companies Act 1956. CAIN. It lists the goods and states how much excise duty applies on them. that your vendor sends you when it delivers excisable goods.SD CIN (Country Version India) 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. Your use the excise invoice to claim back the excise that you have paid from the excise authorities. ‡ The country template also contains settings for automatic accounting postings ‡ The country template for India comes with its own financial statement version. Slide 8 . Material management A business document.

3. Slide 9 .  Depots cannot offset any input duties at all. so if you purchase materials from these companies. 5.  You have to record all excise duty (inputs and outputs) in excise registers. 2. ¥India SAP CoE. 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.  Companies that qualify as small-scale industries can levy excise duty on outputs at reduced rates.Excise Duty The system covers all types of excise duty. You cannot offset all excise duty on inputs against outputs. you must calculate a different rate of excise duty. 4. 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.  Your company may only be entitled to offset a portion of the duty on inputs against duty on outputs. all of which need to be calculated and reported separately: 1. Manufacturing plants can only offset input duties if they can show that the input materials are used to produce output materials.

2) On the other hand. between Karnataka and Tamil Nadu) are subject to central sales tax (CST). A report is also available that tells you how much sales tax you have paid and collected. Slide 10 . when you enter the tax codes. which differ from state to state. The tax rate is the same throughout the country. ¥India SAP CoE. Intrastate sales.  A percentage of input LST can be deducted against output LST. SAP R/3 handles these using tax jurisdiction codes. There are two types of sales tax. are subject to local sales tax (LST). It is applied on the gross price of goods. inclusive of excise duty. depending on what percentage of goods you have purchased in the state in question.Sales Tax This is a tax levied on the sale of a product. 1) Interstate sales (for example.  The system calculates the sales taxes automatically.

Slide 11 .SD CIN (Country Version India) 1 2 PrepareMe TellMe 3 ShowMe LetMe HelpMe 4 5 ¥India SAP CoE.

CIN Customizing Agenda Global Settings Accounting Sales and Distribution Reports ¥India SAP CoE. Slide 12 .

Slide 13 .CIN Customizing Agenda Global Settings ¥India SAP CoE.

Maintain Company Code Menu IMG Logistic . Slide 14 India Basic .General Tax on Goods Movements Path Settings Maintain Company Code Settings ¥India SAP CoE.

Menu IMG Logistic . Slide 15 India Basic . The excise registration reports to the excise authorities.General Tax on Goods Movements Path Settings Maintain Excise Registrations ¥India SAP CoE.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.

Maintain Plant Menu IMG Logistic .General Tax on Goods Movements Path Settings Maintain Plant Settings ¥India SAP CoE. Slide 16 India Basic .

Slide 17 India Basic . the excise registration compiles the information from all of its excise groups. When the time comes to present these records to the authorities. which keeps its own set of excise records. Each excise group keeps records of all the transactions that have to be reported to the excise authorities.General Tax on Goods Movements Path Settings Maintain Excise Groups ¥India SAP CoE.Maintain Excise Groups An unit within an excise registration in India. The excise group is purely an internal organizational unit. Menu IMG Logistic .

Based on excise regulations and exemptions from the excise authorities. Menu IMG Logistic .General Tax on Goods Movements Path Settings Maintain Series Groups ¥India SAP CoE. Slide 18 India Basic . but each of these series have to be declared to the excise authorities.Maintain Series Groups Series groups help in maintaining multiple number ranges for the outgoing excise documents. multiple number series can be maintained for the outgoing documents.

Maintain Excise defaults In this customizing settings. Slide 19 .General Tax on Goods Movements India Basic Path Settings Determination of Excise Duty Maintain Excise Defaults ¥India SAP CoE. we define which tax procedure and pricing condition types are used in calculating excise taxes Menu IMG Logistic .

Tax Indicator Maintenance Menu IMG Logistic .General Tax on Goods Movements Path Settings Maintain Excise Duty Indicators ¥India SAP CoE. Slide 20 India Basic .

CIN Customizing Agenda Accounting ¥India SAP CoE. Slide 21 .

Define G/L Account for Taxes Menu IMG Logistic . Slide 22 India Account .General Tax on Goods Movements Path Determination Define G/L Accounts for Taxes ¥India SAP CoE.

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 Menu IMG Logistic .General Tax on Goods Movements India Account Path Determination Specify Excise Accounts per Excise Transaction ¥India SAP CoE. Slide 23 .

Slide 24 Account . we assign the excise and CENVAT accounts to G/L accounts.Assign G/L Accounts In this IMG activity.General Tax on Goods Movements India Path Determination Specify G/L Accounts per Excise Transaction ¥India SAP CoE. This is maintained for a combination of Excise Group. Company Code and Chart of Accounts Menu IMG Logistic .

we maintain minimum balances in company excise accounts. during utilization falls below the level. When the balances in these accounts. the system automatically utilizes funds in the PLA account.General Tax on Goods Movements India Business Path Transactions Utilization Maintain Minimum Balances for Excise Accounts ¥India SAP CoE.Maintain Minimum Balances In customization over here. Slide 25 . Menu IMG Logistic .

Slide 26 .CIN Customizing Agenda Sales and Distribution ¥India SAP CoE.

Invoices are created by referring to either Proforma Excise Invoices or Customer Invoices.General Tax on Goods Movements India Business Path Transactions Outgoing Excise Invoices Assign Billing Types to Delivery Types ¥India SAP CoE. and assign them to the appropriate Delivery Types. Hence in this IMG activity.Assign Excise Invoice «.. Slide 27 . Menu IMG Logistic . you specify which Billing document types you use as a reference for CENVAT utilization.

Menu IMG Logistic . Here it is specified as to which CENVAT account the duty must be debited to by default.Utilization Determination In this IMG activity. Slide 28 India Business . We specify which CENVAT accounts are to be debited by the Fortnight Utilization of CENVAT.General Tax on Goods Movements Path Transactions Utilization Utilization Determination ¥India SAP CoE.

we want to appear by default for different combinations of Sales Organization. Division and Shipping Point. Distribution Channel. Slide 29 . Menu IMG Logistic .Maintain Default«« We can specify which excise group and series group. This activity is optional unless we require the system to automatically create excise invoices when we create a customer invoice.General Tax on Goods Movements India Business Path Transactions Outgoing Excise Invoices Maintain Default Excise Groups and Series Groups ¥India SAP CoE.

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.General Path Long Texts ¥India SAP CoE. Slide 30 Tax on Goods Movements India Tools . Menu IMG Logistic .

Number Ranges Maintenance of number range for all CIN objects Menu IMG Logistic .General Path Number Ranges ¥India SAP CoE. Slide 31 Tax on Goods Movements India Tools .

CIN Customizing Agenda Reports ¥India SAP CoE. Slide 32 .

we can specify which SAP Script forms the system prints the excise registers with. for each company code. Slide 33 Business .General Tax on Goods Movements India Path Transactions Excise Registers Specify SAPscript Forms ¥India SAP CoE.Maintain SAP Script Layout In this IMG activity. Menu IMG Logistic .

Slide 34 .CIN Master Records Agenda Master Records ¥India SAP CoE.

which together form the chapter ID. T Code : J1ID ¥India SAP CoE. 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.Excise Master 1. Slide 35 .

‡ In the declared column enter X if the material is declared to excise. If it is capital item then select Assets. Also enter the date of declaration. ‡ 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. ¥India SAP CoE. Slide 36 . Material Chapter ID combination ‡If it is a input material then select the tab Raw material. If it is a in-house produced material then select RG1.Excise Master 2.

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. material number. Slide 37 . currency . Assessable value. Enter the combination plant. ¥India SAP CoE. valid from .Excise Master 3.

¥India SAP CoE. The default indicator is marked for such material. Companies are required to file with the Excise authorities. However. to avail Modvat. default indicator for Modvat. a list containing the excisable finished products manufactured and the excisable input materials required for such production.Excise Master 4 CENVAT Determination In this section you have to enter the input and output relationship of the material with combination of plant. 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. Slide 38 . It is possible that an input material may be used in the production of more than one finished product.

Permanent account number. etc. Exporter. or First stage dealer. SSI status (if he is a SSI vendor). manufacturer. Excise Division. Type of Customer and CENVAT (This is applicable for SSI vendor only who has participated in the CENVAT scheme). Excise Range. ¥India SAP CoE. ECC no. CST no.Excise Master 5 Customer Excise details In this section the Customer excise details are maintained.e. Excise Indicator for Customer. his excise registration details. Slide 39 . In the type of Customer you have to select appropriate tab i. The Customer number. The Customer excise details appropriate excise indicator should be selected from the drop down menu of tab. Excise Commissioner ate. LST no.

Slide 40 .Excise Master 6 Excise Indicator for Plant ¥India SAP CoE.

Slide 41 .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 ¥India SAP CoE.

valid to date and percentage of excise duty This indicator and chapter ID combination determines the excise duty for the material.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). Slide 42 . valid from date . ¥India SAP CoE.

Slide 43 .CIN Transactions Agenda Transactions ¥India SAP CoE.

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 ¥India SAP CoE.SD CIN . Slide 44 .

Slide 45 .TRANSACTIONS 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 ¥India SAP CoE.SD CIN .

Slide 46 .TRANSACTIONS ‡ Enter the excise group and series group ‡ Save the excise invoice Excise group Series Group T Code J1IIN ¥India SAP CoE.SD CIN .

Prerequisites ‡ ‡ ‡ Excise Document number Excise series group Document year Transaction Code ‡ J1IH ¥India SAP CoE.TRANSACTIONS Excise invoice Cancellation Purpose ‡ Cancellation of outgoing Excise invoice.SD CIN . Slide 47 .

TRANSACTIONS Execute J1IH ± Cancel Excise Invoice Enter Excise invoice number. Document year and series group Enter document number. Document year and Excise series group ¥India SAP CoE. Slide 48 .SD CIN .

TRANSACTIONS Following screen will appear. Click on after checking the G/L accounts and save the document using CTRL + S ¥India SAP CoE. click on to confirm the G/L accounts to be posted.SD CIN . click on to enter Following screen will appear. Slide 49 .

Slide 50 . Prerequisites ‡ ‡ ‡ ‡ ‡ Material Document number Depot Excise group Factory Excise series group Document year Ship from Transaction Code J1IG ¥India SAP CoE.TRANSACTIONS Depot excise invoice capture Purpose Capturing Mother Excise invoice at depot.SD CIN .

SD CIN . Slide 51 .TRANSACTIONS ‡ Execute transaction J1IG to capture Mother Excise invoice ‡ Enter Depot Excise group and Material Document number and press Enter ¥India SAP CoE.

‡ Following Screen will appear, Enter Ship From, Factory invoice number and Factory Excise series group, tick on own factory

¥India SAP CoE, Slide 52

Click on details button to go into item details, check the quantity and excise duty and save the invoice

¥India SAP CoE, Slide 53

Outgoing Depot excise invoice Purpose ‡ Excise invoices for delivery at depot Prerequisites ‡ Delivery number ‡ Depot Excise group ‡ Depot series group Transaction Code J1IJ

¥India SAP CoE, Slide 54

Execute J1IJ transaction to get following screen

Enter Delivery number, excise group and series group

¥India SAP CoE, Slide 55

SD CIN . Slide 56 .TRANSACTIONS Enter into the details screen as shown below Click on the invoice button to select the mother invoices for reference ¥India SAP CoE.

SD CIN .TRANSACTIONS Select the mother invoice to be referenced and click on the continue button ¥India SAP CoE. Slide 57 .

Slide 58 .SD CIN .TRANSACTIONS Check the referenced quantity and excise duty values and go back to the overview screen ¥India SAP CoE.

SD CIN . Slide 59 .TRANSACTIONS Save the depot excise invoice Note down the Depot excise invoice number as displayed ¥India SAP CoE.

Create ¥India SAP CoE.Process Name: Creation of Excise Letter of under taking for export factory sale SD CIN .TRANSACTIONS Creation of Excise Bond (Letter of under taking) Purpose ‡ This transaction is used for creating Letter of undertaking. Slide 60 . 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 .

Slide 61 .TRANSACTIONS 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 ¥India SAP CoE.SD CIN .

Slide 62 .TRANSACTIONS 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.SD CIN . ‡ Excise invoice has to be generated for sales under letter of undertaking. Menu Path Transaction J1ILN: SAP India Localization Menu ‡ Indirect Taxes -> Sales/Outbound Movements -> Exports Under Excise Regulations -> Exports -> J1IA101 Create/Change/Post/Update/Cancel/Display/Reverse ARE-1 ¥India SAP CoE.

TRANSACTIONS Use transaction J1IA101 Enter Dispatch date and time. Enter Date of dispatch Enter time of removal ¥India SAP CoE. Slide 63 .SD CIN .

SD CIN . Slide 64 .TRANSACTIONS Enter Internal Bond number Post the document by clicking on Note down the ARE1 document number Enter internal Bond number ¥India SAP CoE.

Prerequisites ‡ The ARE1 document to be posted in the system. Slide 65 .SD CIN . Menu Path ‡ Transaction J1ILN: SAP India Localization Menu ‡ Indirect Taxes -> Sales/Outbound Movements -> Exports Under Excise Regulations -> Exports -> J1IA101 Create/Change/Post/Update/Cancel/Display/Reverse ARE-1 Transaction Code ‡ J1IA101 .TRANSACTIONS Updation of ARE1 document Purpose ‡ This transaction is used for updating and closing ARE1 document.Create/Change/Post/Update/Cancel/Display/Reverse ARE-1 ¥India SAP CoE.

TRANSACTIONS ‡ ‡ ‡ ‡ ‡ ‡ Use transaction J1IA101 Enter Arrived at customs date. Countersigned by customs date. Save the document using Ctrl + S to update the ARE1 document. Sent to Excise dept. Slide 66 .SD CIN . Export Confirmed date. Update the relevant data as shown ¥India SAP CoE.

Slide 67 .CIN Registers Agenda Register Entry/Update ¥India SAP CoE.

Slide 68 .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 ¥India SAP CoE.

EXCISE REGISTERS . Slide 69 . 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.Update Creation of Excise Registers You follow this procedure to create the excise registers. 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) ¥India SAP CoE.

Slide 70 . Excise classification for the receipt or issue. Posting date. Enter Company code.Update ‡ Enter Company code.EXCISE REGISTERS . Excise group Enter Posting date for Material document Select Document Posting date Button Enter Classification Select Register ¥India SAP CoE. Plant. Excise group. Plant.

Will appear at the bottom of the screen.EXCISE REGISTERS .Update ‡ ‡ ‡ ‡ 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. Select the relevant entry to be updated ¥India SAP CoE. Slide 71 . Click on to update the material document to Register.

EXCISE REGISTERS .Extraction Purpose ‡ Extracting entries updated to Register for issues and receipts of excisable goods. Slide 72 . Prerequisites ‡ ‡ ‡ ‡ ‡ Excise group Start date End date Register Type Receipt/Issue Excise classification codes Transaction Code ‡ J2I5 ¥India SAP CoE.

¥India SAP CoE. Enter Excise group.Extraction Following screen will appear on executing transaction J2I5. Start date. Slide 73 . and radio button for Register type. ‡ Following screen will be displayed on successful extraction of Register. Press F8 for extracting Register.EXCISE REGISTERS . End date.

EXCISE REGISTERS .Extraction ‡ Following screen will be displayed on successful extraction of Register. Slide 74 . ¥India SAP CoE.

Slide 75 .SD CIN (Country version India) 1 2 PrepareMe TellMe 3 ShowMe LetMe HelpMe 4 5 ¥India SAP CoE.

LetMe Create of Master Data for Tax calculation J1ID FV11 VK11 J1IBN01 FTXP VK11 Excise rate maintenance Maintain Tax Condition Records Maintain Condition Record Create Excise Bond Tax Code maintenance Tax condition record maintenance ¥India SAP CoE. Slide 76 .

Slide 77 .LetMe Transactions J1IEX J1IIN J1IJ J1IS J1IP J2IU J1IA101 J1IA102 J1IA301 J1IA302 J1I2 J1I5 Capture Incoming Excise Invoice Capture outgoing Excise invoice for Sales order Capture outgoing Excise invoice for Depot Sales Capture outgoing Excise invoice for Other goods movement Print Excise Invoice Post Fortnightly Payment Create / Change ARE1 for central processing Create / Change ARE1 for Individual processing Create / Change ARE3 for central processing Create / Change ARE3 for Individual processing Sales Tax Register Update Excise Register ¥India SAP CoE.

SD CIN (Country version India) 1 2 PrepareMe TellMe 3 ShowMe LetMe HelpMe 4 5 ¥India SAP CoE. Slide 78 .

Slide 79 . 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) ¥India SAP CoE.HelpMe CIN TABLES All CIN Tables start with J_1I and J_2I. There are 129 tables.

Slide 80 .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. ¥India SAP CoE.

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