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SD CIN (Country India Version)
India SAP CoE, Slide 1
SD CIN (Country Version India)
India SAP CoE, Slide 2
SD CIN (Country Version India)
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
Levy of service tax on all services rendered from Factory / Depot 12. Calculation of Excise duty based on Material and Chapter ID combination 2. It provides predefined sample pricing procedures. and settings for automatic account determination to the appropriate Excise Accounts . Slide 5 . The customer and vendor masters have been enhanced to store taxation details specifically for India. Usage of Pre-printed Invoice Numbers 6.Use Country Version India comes ready configured with all the settings. India SAP CoE. Payment of Cess on certain category of Material if applicable 13. Maintenance of excise rules. including all taxes. Calculation of Output Tax based on Interstate Transactions 4. Calculation of Excise bases on concessional forms 3. Maintenance and printing of Excise / Sales Tax details of customer on Invoices 5. Excise Invoice Number should start with No. 1.1 for every government fiscal year in Depot 7. 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. Maintenance of RG23D register in Depots 8. Sales processing CIN covers the following Indian statutory requirements.
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.Challenges 1. 2. Slide 6 . 3.
Slide 7 .SD CIN (Country Version India) 1 2 PrepareMe TellMe 3 ShowMe LetMe HelpMe 4 5 India SAP CoE.
Slide 8 . 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. that your vendor sends you when it delivers excisable goods. Material management A business document. Your use the excise invoice to claim back the excise that you have paid from the excise authorities. CAIN.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. It lists the goods and states how much excise duty applies on them. 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. It contains all accounts common to most businesses in India. BAIN.
Companies that qualify as small-scale industries can levy excise duty on outputs at reduced rates. 5. You have to record all excise duty (inputs and outputs) in excise registers. all of which need to be calculated and reported separately: 1. 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. you must calculate a different rate of excise duty. Manufacturing plants can only offset input duties if they can show that the input materials are used to produce output materials. India SAP CoE. Your company may only be entitled to offset a portion of the duty on inputs against duty on outputs. Slide 9 . 3. 4.Excise Duty The system covers all types of excise duty. 2. 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. Depots cannot offset any input duties at all. so if you purchase materials from these companies. You cannot offset all excise duty on inputs against outputs.
The tax rate is the same throughout the country. SAP R/3 handles these using tax jurisdiction codes. India SAP CoE. Slide 10 . 1) Interstate sales (for example. A report is also available that tells you how much sales tax you have paid and collected. There are two types of sales tax. It is applied on the gross price of goods. A percentage of input LST can be deducted against output LST. The system calculates the sales taxes automatically. which differ from state to state. Intrastate sales. depending on what percentage of goods you have purchased in the state in question. between Karnataka and Tamil Nadu) are subject to central sales tax (CST). inclusive of excise duty. 2) On the other hand. when you enter the tax codes. are subject to local sales tax (LST).Sales Tax This is a tax levied on the sale of a product.
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 .
CIN Customizing Agenda Global Settings India SAP CoE. Slide 13 .
Slide 14 .Maintain Company Code Menu IMG Logistic .General Tax on Goods Movements India Basic Path Settings Maintain Company Code Settings India SAP CoE.
The excise registration reports to the excise authorities. Slide 15 . Menu IMG Logistic .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.General Tax on Goods Movements India Basic Path Settings Maintain Excise Registrations India SAP CoE.
Maintain Plant Menu IMG Logistic .General Tax on Goods Movements India Basic Path Settings Maintain Plant Settings India SAP CoE. Slide 16 .
Maintain Excise Groups An unit within an excise registration in India. Menu IMG Logistic .General Tax on Goods Movements India Basic Path Settings Maintain Excise Groups India SAP CoE. Slide 17 . When the time comes to present these records to the authorities. 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. which keeps its own set of excise records. the excise registration compiles the information from all of its excise groups.
multiple number series can be maintained for the outgoing documents.General Tax on Goods Movements India Basic Path Settings Maintain Series Groups India SAP CoE. 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. Based on excise regulations and exemptions from the excise authorities. Slide 18 . Menu IMG Logistic .
Slide 19 .General Tax on Goods Movements India Basic Path Settings Determination of Excise Duty Maintain Excise Defaults India SAP CoE.Maintain Excise defaults In this customizing settings. we define which tax procedure and pricing condition types are used in calculating excise taxes Menu IMG Logistic .
General Tax on Goods Movements India Basic Path Settings Maintain Excise Duty Indicators India SAP CoE. Slide 20 .Tax Indicator Maintenance Menu IMG Logistic .
Slide 21 .CIN Customizing Agenda Accounting India SAP CoE.
Slide 22 .General Tax on Goods Movements India Path Account Determination Define G/L Accounts for Taxes India SAP CoE.Define G/L Account for Taxes Menu IMG Logistic .
General Tax on Goods Movements India Path Account Determination Specify Excise Accounts per Excise Transaction India SAP CoE. Slide 23 .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 .
This is maintained for a combination of Excise Group. Slide 24 .Assign G/L Accounts In this IMG activity. we assign the excise and CENVAT accounts to G/L accounts. Company Code and Chart of Accounts Menu IMG Logistic .General Tax on Goods Movements India Path Account Determination Specify G/L Accounts per Excise Transaction India SAP CoE.
Menu IMG Logistic . Slide 25 .Maintain Minimum Balances In customization over here. When the balances in these accounts.General Tax on Goods Movements India Path Business Transactions Utilization Maintain Minimum Balances for Excise Accounts India SAP CoE. we maintain minimum balances in company excise accounts. during utilization falls below the level. the system automatically utilizes funds in the PLA account.
CIN Customizing Agenda Sales and Distribution India SAP CoE. Slide 26 .
you specify which Billing document types you use as a reference for CENVAT utilization.. and assign them to the appropriate Delivery Types.Assign Excise Invoice …. Invoices are created by referring to either Proforma Excise Invoices or Customer Invoices. Menu IMG Logistic . Slide 27 .General Tax on Goods Movements India Path Business Transactions Outgoing Excise Invoices Assign Billing Types to Delivery Types India SAP CoE. Hence in this IMG activity.
Menu IMG Logistic .Utilization Determination In this IMG activity.General Tax on Goods Movements India Path Business Transactions Utilization Utilization Determination India SAP CoE. 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. Slide 28 .
we want to appear by default for different combinations of Sales Organization. Distribution Channel.General Tax on Goods Movements India Path Business Transactions Outgoing Excise Invoices Maintain Default Excise Groups and Series Groups India SAP CoE. This activity is optional unless we require the system to automatically create excise invoices when we create a customer invoice. Menu IMG Logistic . Division and Shipping Point. Slide 29 .Maintain Default…… We can specify which excise group and series group.
Slide 30 .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 India SAP CoE.
General Tax on Goods Movements India Tools Path Number Ranges India SAP CoE.Number Ranges Maintenance of number range for all CIN objects Menu IMG Logistic . Slide 31 .
Slide 32 .CIN Customizing Agenda Reports India SAP CoE.
General Tax on Goods Movements India Path Business Transactions Excise Registers Specify SAPscript Forms India SAP CoE. Slide 33 .Maintain SAP Script Layout In this IMG activity. we can specify which SAP Script forms the system prints the excise registers with. Menu IMG Logistic . for each company code.
CIN Master Records Agenda Master Records India SAP CoE. Slide 34 .
These chapters are further subdivided into headings and subheadings.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. T Code : J1ID India SAP CoE. which together form the chapter ID. Slide 35 .
• In the declared column enter X if the material is declared to excise. Material Chapter ID combination •If it is a input material then select the tab Raw material.Excise Master 2. If it is a in-house produced material then select RG1. India SAP CoE. Also enter the date of declaration. If it is capital item then select Assets. Slide 36 . • 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.
Assessable value. valid from . Slide 37 . 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. India SAP CoE. Enter the combination plant. material number.Excise Master 3. currency .
Companies are required to file with the Excise authorities. 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. default indicator for Modvat. to avail Modvat. Slide 38 . The default indicator is marked for such material. However. It is possible that an input material may be used in the production of more than one finished product. a list containing the excisable finished products manufactured and the excisable input materials required for such production. India SAP CoE.Excise Master 4 CENVAT Determination In this section you have to enter the input and output relationship of the material with combination of plant.
Type of Customer and CENVAT (This is applicable for SSI vendor only who has participated in the CENVAT scheme). Excise Range. Permanent account number. ECC no. Excise Division. The Customer number. Excise Indicator for Customer. LST no. Excise Commissioner ate. SSI status (if he is a SSI vendor). The Customer excise details appropriate excise indicator should be selected from the drop down menu of tab.Excise Master 5 Customer Excise details In this section the Customer excise details are maintained. manufacturer. Exporter. CST no. India SAP CoE. etc. Slide 39 .e. or First stage dealer. his excise registration details. In the type of Customer you have to select appropriate tab i.
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.
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. Slide 42 . India SAP CoE.
CIN Transactions Agenda Transactions India SAP CoE. Slide 43 .
Slide 44 . 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 .TRANSACTIONS Creation of Excise Invoice for factory sale Purpose • This transaction is used for creating excise invoice with reference to a billing document.
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 45 .
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.
TRANSACTIONS Excise invoice Cancellation Purpose • Cancellation of outgoing Excise invoice. Prerequisites • • • Excise Document number Excise series group Document year Transaction Code • J1IH India SAP CoE.SD CIN . Slide 47 .
SD CIN .TRANSACTIONS Execute J1IH – Cancel Excise Invoice Enter Excise invoice number. Document year and series group Enter document number. Slide 48 . Document year and Excise series group India SAP CoE.
Slide 49 . click on to confirm the G/L accounts to be posted. click on to enter Following screen will appear.SD CIN . Click on after checking the G/L accounts and save the document using CTRL + S India SAP CoE.TRANSACTIONS Following screen will appear.
Prerequisites • • • • • Material Document number Depot Excise group Factory Excise series group Document year Ship from Transaction Code J1IG India SAP CoE.SD CIN .TRANSACTIONS Depot excise invoice capture Purpose Capturing Mother Excise invoice at depot. Slide 50 .
TRANSACTIONS • Execute transaction J1IG to capture Mother Excise invoice • Enter Depot Excise group and Material Document number and press Enter India SAP CoE.SD CIN . Slide 51 .
SD CIN - TRANSACTIONS
• Following Screen will appear, Enter Ship From, Factory invoice number and Factory Excise series group, tick on own factory
India SAP CoE, Slide 52
SD CIN - TRANSACTIONS
Click on details button to go into item details, check the quantity and excise duty and save the invoice
India SAP CoE, Slide 53
SD CIN - TRANSACTIONS
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
SD CIN - TRANSACTIONS
Execute J1IJ transaction to get following screen
Enter Delivery number, excise group and series group
India SAP CoE, Slide 55
SD CIN .TRANSACTIONS Enter into the details screen as shown below Click on the invoice button to select the mother invoices for reference India SAP CoE. Slide 56 .
SD CIN . Slide 57 .TRANSACTIONS Select the mother invoice to be referenced and click on the continue button India SAP CoE.
TRANSACTIONS Check the referenced quantity and excise duty values and go back to the overview screen India SAP CoE.SD CIN . Slide 58 .
TRANSACTIONS Save the depot excise invoice Note down the Depot excise invoice number as displayed India SAP CoE. Slide 59 .SD CIN .
Slide 60 . Menu Path • Transaction J1ILN: SAP India Localization Menu Indirect Taxes -> Master data -> Excise Invoice -> Excise Bond Transaction Code • J1IBN01 .TRANSACTIONS Creation of Excise Bond (Letter of under taking) Purpose • This transaction is used for creating Letter of undertaking.Create India SAP CoE.Process Name: Creation of Excise Letter of under taking for export factory sale SD CIN . Prerequisites • Letter of undertaking to be given to local excise range and the number for the letter of undertaking to be obtained.
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. Slide 61 .SD CIN .
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 India SAP CoE.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. Slide 62 . • Excise invoice has to be generated for sales under letter of undertaking.
Slide 63 .SD CIN . Enter Date of dispatch Enter time of removal India SAP CoE.TRANSACTIONS Use transaction J1IA101 Enter Dispatch date and time.
TRANSACTIONS Enter Internal Bond number Post the document by clicking on Note down the ARE1 document number Enter internal Bond number India SAP CoE. Slide 64 .SD CIN .
Prerequisites • The ARE1 document to be posted in the system.Create/Change/Post/Update/Cancel/Display/Reverse ARE-1 India SAP CoE. 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 .SD CIN . Slide 65 .TRANSACTIONS Updation of ARE1 document Purpose • This transaction is used for updating and closing ARE1 document.
Slide 66 . Save the document using Ctrl + S to update the ARE1 document. Export Confirmed date. Countersigned by customs date.SD CIN . Update the relevant data as shown India SAP CoE. Sent to Excise dept.TRANSACTIONS • • • • • • Use transaction J1IA101 Enter Arrived at customs date.
CIN Registers Agenda Register Entry/Update India SAP CoE. Slide 67 .
EXCISE REGISTERS . Slide 68 .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.
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 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.EXCISE REGISTERS .Update Creation of Excise Registers You follow this procedure to create the excise registers.
Plant. Enter Company code.Update • Enter Company code. Excise classification for the receipt or issue. Excise group. Posting date.EXCISE REGISTERS . Excise group Enter Posting date for Material document Select Document Posting date Button Enter Classification Select Register India SAP CoE. Plant. Slide 70 .
Click on to update the material document to Register. Will appear at the bottom of the screen.Update • • • • A list of material documents relevant for Register updation are short listed as shown below. Slide 71 . Select the relevant Material document and click on to simulate.EXCISE REGISTERS . Select the relevant entry to be updated India SAP CoE.
Slide 72 .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 India SAP CoE.EXCISE REGISTERS .
EXCISE REGISTERS .Extraction Following screen will appear on executing transaction J2I5. • Following screen will be displayed on successful extraction of Register. Start date. Slide 73 . Enter Excise group. India SAP CoE. Press F8 for extracting Register. End date. and radio button for Register type.
EXCISE REGISTERS . India SAP CoE.Extraction • Following screen will be displayed on successful extraction of Register. Slide 74 .
SD CIN (Country version India) 1 2 PrepareMe TellMe 3 ShowMe LetMe HelpMe 4 5 India SAP CoE. Slide 75 .
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 Capture Incoming Excise Invoice J1IIN J1IJ J1IS J1IP 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 J2IU J1IA101 J1IA102 J1IA301 Post Fortnightly Payment Create / Change ARE1 for central processing Create / Change ARE1 for Individual processing Create / Change ARE3 for central processing J1IA302 J1I2 J1I5 Create / Change ARE3 for Individual processing Sales Tax Register Update Excise Register India SAP CoE.
Slide 78 .SD CIN (Country version India) 1 2 PrepareMe TellMe 3 ShowMe LetMe HelpMe 4 5 India SAP CoE.
Slide 79 .HelpMe CIN TABLES All CIN Tables start with J_1I and J_2I. 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. There are 129 tables.
India SAP CoE.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. Slide 80 .
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