Country Version India

A Country Version is designed specifically to cater the business

operations of that country over and above the generic SAP system
functionalities. It comprises of functionalities designed for the laws and
business practices pertaining to the country.

Most of the country-specific functions for India relate to Financials and

Logistics.
The main areas are as follows:

 Excise duty and the central value-added tax system (CENVAT)

 Withholding tax (also known as tax deducted at source)
 Sales tax
 Maintenance and printing of statutory excise registers

The official help documentation for Country Version India is here .

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

manufacturing scenarios. Excise related configuration is known as
CIN configuration. CIN Configuration is a topic in itself.

Here is some information on CIN Configuration. While it may not

appear understandable as given below, it will be understood better
when you check on screen.

Country Version India comes with four pricing procedures as

follows:

 JINFAC (Sales from manufacturing plants)

 JINEXP (Export sales)
 JINDEP (Sales from depots)
 JINSTK (Stock transfers

CIN:

IMG > Logistics - General > Tax on Goods Movement > India >
 Basic Settings >
Maintain Excise Registrations

Use
In this IMG activity, you maintain the data relating to your
excise registrations.
Activities
Enter each of your excise registrations, specifying a four-
character code for each
Excise Registration IDs
In this activity, you maintain excise registration IDs. You
create one ID for each of your business's excise registrations.

Activities
For each excise registration in your business create a
registration ID and state:
 Which taxes the registration covers (additional excise duty
AED, special excise duty, and cess)Fields for any taxes that
are not covered will be hidden in transactions involving excise
duty.
 The maximum number of items to be printed on each excise
invoice
 Whether you are allowed partial CENVAT credits

Maintain Registration ID NUMBER, Excise code number, excise

registration number

Excise Registration Number

A number assigned to each premises or location that has
registered as a manufacturer with the excise authorities.
Every entity with an excise registration number is required to
keep its own excise books.

ECC Number
Specifies the organization's ECC number.

Excise Registration Number

A number assigned to each premises or location that has
registered as a manufacturer with the excise authorities.
Every entity with an excise registration number is required to
keep its own excise books.

Excise range: Specifies the excise range in whose area the

excise registration is located.
Excise Division
Specifies the excise division in whose area the excise
registration is located.

Excise Collectorate
The code of the excise collectorate in whose area the excise
registration is located.

Indicator for confirming AED usage

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

Similarly for SED CESS

Number of Items in Excise Invoice

Shows the maximum number of line items that the authorities
allow per excise invoice.
Dependencies
This information is used when you create an excise invoice in
Sales and Distribution (SD) for factory sales and for other
movements.

This information is used to split the transfer postings' items

into multiple subcontracting challans.

Excise register set description

Description of the excise registers set.

Partial CENVAT Credit

Indicates that the excise registration ID is allowed to credit
only a portion of its input excise duty to its CENVAT account.
Dependencies
When you post a goods receipt, the system splits the input
excise duty on the material into its deductible and
nondeductible amounts. It posts the deductible duty to the
appropriate CENVAT account, and adds the nondeductible
duty to the material value.

This information is also shown when you post the vendor's

excise invoice.
Maintain Company Code Settings
Use
In this IMG activity, you maintain the data relating to your
company codes.
Document Type for CENVAT Postings
It controls, which document type the system uses when
making CENVAT postings in Financial Accounting (FI). Here ED
is document type for cenvat posting.

Indicator for providing debit account overwriting

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

Automatic balance Indicator

Excise year start month

The calendar month marking the beginning of the excise year
Use
This start month represents the month for the start of the
excise invoice number range. The month 04 is entered here
indicating April of the calendar year as the start month for
excise invoices. Any change by the Excise authorities
regarding start month should be taken care of by an entry in
this field and initialization.

Excise invoice selection procedure

Excise invoice selection type. To indicate the method opted by
the company for selecting the excise invoice. It can be either
earliest or latest invoices that were received.

Number of excise invoices to be selected

Indicates the number of excise invoices that needs to be
selected in the excise invoice selection.

Days to be considered for excise invoice selection

Number of days from document date for excise invoice
selection.
Example
If the value of this field is 20 and today is 28-03-97. The
excise
invoice selection will show the related invoices only for the
period 08-03-97 to 28-03-97.
Document type for TDS FI posting
Financial accounting document type for TDS posting.

Document type for FI posting on Utilisation

Financial accounting document type for TDS posting.

Indicator for item level excise duty round off

This indicator is to be used for deciding whether Item level
excise duty amount rounding off is required during
procurement cycle. If marked 'X' then the excise duty amount
will be rounded off to the nearest rupee at the Purchase order
level. This will not round off the CENVAT credit to be taken. If
the duty amount is less than one rupee then no rounding is
done

Rounding off of Excise duty for outgoing excise invoice

You can round off the Excise amount to be paid during an
outgoing Excise invoice by marking this indicator as 'X'. The
rounding is done at the item level for each item where the
amount is greater than 1 Rupee.

Immediate Credit on Capital Goods

Instructs the system, when you verify a goods receipt for
capital goods, to immediately post half of the input excise
duty to the appropriate CENVAT accounts.

The rest is posted the CENVAT on hold account, for use in the
following year.

CVD Clearing Account

Specifies which G/L account the system credits when you take
a CENVAT credit on countervailing duty in the Incoming Excise
Invoices transaction.

Exchange rate type

Key representing a type of exchange rate in the system.
Use
You enter the exchange rate type to store different exchange
rates.
Example
You can use the exchange rate type to define a buying rate,
selling rate, or average rate for translating foreign currency
amounts. You can use the average rate for the currency
translation, and the bank buying and selling rates for valuation
of foreign currency amounts.
Exchange rate type to be used for Export excise duty converts
When you are creating an Excise invoice for export sales then
the exchange rate for duty calculation will be picked up using
this Exchange rate type.

Maintain Plant Settings

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

Depot
Indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow
different procedures for goods receipt and invoice generation.

Number of goods receipt per excise invoice.

Multiple GR for one excise invoice, Single credit

Multiple GR for one excise invoice, Multiple credit

Maintain Excise Groups

Use
In this IMG activity, you define your excise groups. For each
excise group, you can also control how various excise invoice
transactions will work.
Excise Groups
In this activity, you define excise groups. An excise group
allows you to maintain a separate set of excise registers and
excise accounts. The RG 23A, RG 23C and PLA serial numbers
are created for an excise group.

Recommendation
Under normal circumstances, excise authorities require every
business to maintain only one set of excise registers and one
set of accounts. But through exemption from the authorities,
multiple books can be maintained.

If your company has only one set of excise registers, then you
need to maintain only one excise group.

Activities
1. Create one excise group for each set of registers that you
need to keep.
1. Assign the excise groups to plants.
2. Maintain whether this Excise group is for a depot or not.
3. If you receive only one consignment for an Excise challan
then you can leave GR's per EI as blank. If you receive multiple
GR's for a given Excise challan and would like to avail multiple
credit mark the GRs per EI as 'Multiple GR's for one excise
invoice, multiple credit'. Alternatively if you want to availa the
credit only after all the goods receipts have been made mark
it as ' Multiple GR for one excise invoice, single credit'.
4. If you want to automatically create Excise invoice during
Sales cycle at the time of billing the tick the indicator 'Create
EI'
5. During depot sales if you do not want to do RG23D selection
and posting separately and would like to complete RG23D
selection in one step mark the indicator 'RG23D Auto post'.
This will post the selected records into RG23D automatically.
You cannot cancel the selection later.
6. If the indicator 'Default GR qty' is marked system will
default the Excise challan quantity on to the Goods receipt if
the Excise invoice number is given in the pop-up.
7. If the indicator 'Folio no create' is marked system will
generate Folio numbers for RG23D during receipt of excise
invoice into depot.
8. 'Automatic posting' when ticked will post the Excise invoice
other movements automatically along with creation in single
step.
9. 'Create Part1 for Block Stock' when marked will create a
Part1 during the receipt of material into Blocked stock .
10. 'Create Part1 for STO' when marked will create a Part1
during the receipt of material through inter plant transfers.
11. 'Create Part1 for consumption stock' when marked will
create a Part1 during the receipt of material into consumption
stock.
Excise Group
Governs which set of excise registers a business transaction
will be included in.
Following is the relation between excise group, plant and
registration.

Dependencies
In define excise groups in Customizing.
Then, in transactions involving excise duty, for example, when
you post a vendor's excise invoice, you specify which excise
group you are using. This information tells the system which
G/L accounts to post the excise to.
At the end of the period, when you come to prepare your
excise registers, you create different sets for each excise
group.

Indicates that the plant in question is a depot.

Dependencies
Depots are required to prepare register RG 23D, and follow
different procedures for goods receipt and invoice generation.

GR Per Excise Invoice

Multiple GR for one excise invoice , Multiple credit

Multiple GR for one excise invoice , Single Credit

Create Excise Invoice Automatically

Instructs the system to automatically create a Sales and
Distribution (SD) excise invoice immediately you create a
commercial invoice or a pro forma invoice.
The excise invoice is created in the background.
Dependencies
If you want to make use of this function, you must also define
the default plant, excise group, and series groups in
Customizing for Sales and Distribution (SD), by choosing
Excise Group - Series Group Determination.

RG23D Sales Creation and posting option

RG23D Automatic Option if selected will create Depot excise
invoice by posting the selection of excise invoices in single
step.
If this is not selected then you need to separately do RG23D
selection followed by PGI and then RG23D verification and
posting.
If you need automatic posting of RG23D selection then the
Post Goods Issue should have been completed before running
RG23D selection.
Default excise qty in GR
If this indicator is ticked then while doing Goods Receipt using
'MB01' system will default the excise invoice quantity on to
the Goods receipt document.

Folio number for depo

Posting
If this indicator is marked then while creating Excise invoice
for other movements system automatically does the Verify
and Post. You need not separately Post the excise invoice

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

Blocked stock
Stock transport order
Consignment stock

Maintain Series Groups

Use
In this IMG activity, you define the different excise series
groups within your company. Series groups allow you to
maintain multiple number ranges for the outgoing excise
documents.
Based on excise regulations and exemptions from the
authorities you can maintain multiple number series for
outgoing documents. But each of these series has to be
declared to the excise authorities.
Activities
? Define excise series groups based on type of outgoing
document
? Assign series group to excise registration ID
? If no financial postings are required for an Excise invoice in
this seris group then you tick the 'No utilization' indicator.
? If the CENVAT has to be paid immediately and you need not
wait for the Fort nightly payment then mark the 'Immediate
Utilization' indicator.
Example
You could define two series groups, group 001 for excise
invoices, and group 002 for 57 F4 documents.

No account postings for CENVAT in sales cycle

No utilization Flag
If you do not need any CENVAT utilization for an excise invoice
but would like to just generate an excise invoice then you
need to mark this indicator.
IF the flag is checked then system will create an Excise invoice
in the given Series group but there will not be any account
postings or Part2 postings.
Immediate Utilization of CENVAT
Specifies that when you create an excise invoice, the system
immediately pays the amount from CENVAT and creates the
Part II entry. Such invoices will not be listed for fortnightly
utilization.
If you have both fortnightly and immediate utilization for the
same excise group, the account determination within CIN IMG
should point to the ED interim account.
Account determination for immediate payment will be done
exactly the same as being done for fortnightly utilization
program.

Maintain Excise Duty Indicators

Use
In this IMG activity, you maintain the excise duty indicators.

IMG > Logistics - General > Tax On Goods Movement > India
> Basic Settings > Determination of Excise Duty >
Select Tax Calculation Procedure
Use
In this IMG activity, you specify which tax procedure you want
to use for determining excise duties and sales taxes on input
materials in India.
? If you use condition-based excise determination, use a copy
of the tax procedure TAXINN.
? If you use formula-based excise determination, use a copy of
the tax procedure TAXINJ.
This tax procedure also supports condition-based excise
determination, so that you can work with both concurrently.
We strongly recommend that new customers use condition-
based excise determination. Note that once you have started
using a tax procedure, you cannot switch to another one,
otherwise you will not be able to display old documents.

Maintain Excise Defaults

Use
In this IMG activity, you define which tax procedure and
pricing condition types are used in calculating excise taxes
using formula-based excise determination.
Activities
If you use condition-based excise determination, fill out the
CVD cond. field and leave all the others blank.
If you use formula-based excise determination, fill out all of
the fields as follows:
? Enter the tax procedure and the pricing conditions that are
relevant for excise tax processing.
? Specify the purchasing and sales conditions types used for
basic excise duty, additional excise duty, special excise duty,
and cess.
? Specify the conditions in the sales order that are used for
excise rates.
? Specify the countervailing duty condition type used for
import purchase orders.
See also

SAP Library -> Logistics -> Country Versions -> Asia-Pacific ->
India -> Materials Management (MM) -> Condition-Based
Excise Determination and -> Formula-Based Excise
Determination.
IMG > Logistics - General > Tax On Goods Movement > India
> Basic Settings > Determination of Excise Duty >
Condition-Based Excise Determination
Use
When you enter a purchasing document, for example, a
purchase order, the R/3 System automatically calculates the
applicable excise duties using the condition technique.
Features
The standard system comes with two tax calculation
procedures. TAXINN is only supports condition-based excise
determination, whereas TAXINJ supports condition-based
excise determination and formula-based excise determination.
Both tax procedures contain condition types that cover all of
the excise duties and sales taxes applicable.
Since the exact rates of excise duty can vary on a large
number of factors, such as which vendor you purchase a
material from, or which chapter ID the vendor stocks the
material under, you create condition records for every sort of
excise duty.
When you come to enter a purchasing document, the system
applies the excise duty at the rates you have entered in the
condition records.
Activities
Customizing
Make the settings in Customizing Basic? India?for Logistics -
General, by choosing Taxes on Goods Movements Account?
Excise Duties Using Condition Technique and ...?Settings
Determination.
These activities include one activity where you define a tax
code for condition-based excise determination.
Master Data
Create condition records for all excise duties that apply, and
enter the tax code for condition-based excise determination in
each.
Day-to-Day Activities
When you enter a purchase order or other purchasing
document, enter the tax code for condition-based excise
determination in each line item. The system then calculates
the excise duties using the condition records you have
created.
When the ordered materials arrive, you post the goods receipt
and the excise invoice. The system posts the excise duty to
the appropriate accounts for deductible input taxes when you
enter the excise invoice.
Creating Condition Records for Excise Duty
1. In the command field, enter FV11 and choose .
2. Enter the condition type that you want to create a condition
record for and choose .
The Key Combination dialog box appears.
3. Select the combination of objects that you want to create
the condition record for.
On the dialog box, Control Code means "chapter ID."
So, for example, to create a condition record for a tax that
applies to a combination of country, plant, and chapter ID,
select Country/Plant/Control Code.
4. Choose .
5. Enter data as required.
In the Tax Code field, enter the dummy tax code that you have
defined.
6. Save the condition record.

Formula-Based Excise Determination

Use
When you execute a business transaction involving materials
that are subject to excise duty, the system automatically
calculates the duty for you.
Prerequisites
In order for the system to be able to determine which rate of
excise duty to apply, you must have maintained all the data
on the Excise Rate Maintenance screen, which you can Master
Data?access from the SAP Easy Access screen by choosing
Indirect Taxes Excise Rate Maintenance.?
You maintain the following types of data:
? Plant master data
You assign each of your plants an excise duty indicator. You
can use the same indicator for all the plants with the same
excise status from a legal point of view, such as all those that
are in an exempt zone.
See also the information about manufacturers that are only
entitled to deduct a certain portion of the duty (see Partial
CENVAT Credit).
? Vendor master data
For each of your vendors with the same excise status from a
legal perspective, you define an excise duty indicator. You
must also specify the vendor type - for example, whether the
vendor is a manufacturer, a depot, or a first-stage dealer. You
must also stipulate if the vendor qualifies as a small-scale
industry.
For each permutation of plant indicator and vendor indicator,
you then create a final excise duty indicator.
? Customer master data
Similarly, you assign the same excise duty indicator to each of
your customers that share the same legal excise status.
Again, for each permutation of plant indicator and customer
indicator, you then create a final excise duty indicator.
? Material master data
Each material is assigned a chapter ID.
? Excise tax rate
For every chapter ID and final excise duty indicator, you
maintain the rate of excise duty.
If your business only qualifies for partial CENVAT credit, you
must customize your system accordingly.
Activities
Let us consider an example to illustrate how the system
determines which rate of excise duty to apply to a material.
Assume you are posting a sale of ball bearings to a customer.
The system automatically determines the rate of excise duty
as follows:
1. Looks up the customer master data to see what status you
have assigned the customer.
Let's assume you've assigned the customer status 3.
2. Looks up the plant master data to see what status you have
assigned the plant.
Similarly, your plant has status 2.
3. The system looks up the table under Excise Indicator for
Plant and Customer to see what the final excise duty indictor
is for customer status 3 and plant status 2: It is 7.
4. The system determines the chapter ID of the ball bearing
for the plant.
Let's assume the chapter ID at plant for the ball bearings is
1000.01.
5. Finally, the system looks up the table under Excise Tax Rate
to see what rate of duty applies to chapter ID 1000.01 under
status 7.
Define Tax Code for Purchasing Documents
Use : In this IMG activity, you define a tax code for the
purposes of calculating excise duty when you enter purchasing
documents.
Only carry out this activity if you use condition-based excise
determination.
Activities: Create a new tax code, and set the tax code type to
V (input tax). Do not make any other settings for it.

Assign Tax Code to Company Codes

Use
In this IMG activity, assign the tax code for purchasing
documents to the company codes where it will be used.
Only carry out this activity if you use condition-based excise
determination.

Classify Condition Types

Use
In this IMG activity, you specify which condition types you use
for which sort of tax. Note that this only applies to condition
types that you use with the new excise determination
method.
The system uses this information when you create a document
from another one. For example, when you enter an incoming
excise invoice from a purchase order, or when you create an
outgoing excise invoice from a sales order, the system
determines the various excise duties in the excise invoice
using the information that you have entered here.
In addition, when you create a purchasing document, the
system only uses the condition types that you enter here.
? For taxes on purchases, use the condition types contained in
the tax procedure.
? For taxes on sales, use the condition types contained in the
pricing procedures.
Standard settings
The standard system comes with sample settings for the tax
calculation procedures and pricing procedures.
Use these settings as a basis for your own.

IMG > Logistics - General > Tax On Goods Movement > India
> Account Determination
Define G/L Accounts for Taxes
Use
In this IMG activity, you specify which G/L accounts you will
use to record which taxes.
Requirements
You have set up G/L accounts for each of the processing keys
listed below.
Activities
Assign an account to each of the following posting keys. The
accounts for VS1, VS2, and VS3 are used as clearing accounts
during excise invoice verification.
? VS1 (basic excise duty)
? VS2 (additional excise duty)
? VS3 (special excise duty)
? VS5 (sales tax setoff)
? MWS (central sales tax)
? MW3 (local sales tax)
? ESA (service tax)
? ESE (service tax expense)

Specify Excise Accounts per Excise Transaction

Use
In this IMG activity, you specify which excise accounts (for
excise duty and CENVAT) are to be posted to for the various
transaction types. Enter all the accounts that are affected by
each transaction type.
If you use subtransaction types, enter the accounts for each
subtransaction type as well.
Activities
Transaction type UTLZ is used for determining accounts only
while posting excise JVs and also if the payment of excise duty
has to be done fortnightly.
The fortnightly CENVAT payment utility picks up the credit side
accounts from the transaction types of GRPO, EWPO, and
TR6C for determining the CENVAT and PLA accounts. There is
no separate transaction type for fortnightly payment.
Example
Excise TT DC ind Account name
GRPO CR CENVAT clearing account
GRPO CR RG 23 BED account
GRPO DR CENVAT on hld account

Specify G/L Accounts per Excise Transaction

Use
In this IMG activity, you assign the excise and CENVAT
accounts to G/L accounts.
When you come to execute the various transactions, the
system determines which G/L accounts to post to by looking at
the:
? Excise group
? Company code
? Chart of accounts
Furthermore, if you want separate account determination
settings within an excise group, you can also use sub
transaction types.
Requirements
You have already:
? Defined the G/L accounts
? Defined the excise groups
? Maintained the transaction accounts
Activities
For each excise group, assign the excise and CENVAT accounts
to G/L accounts. For most businesses, one set of accounts will
suffice for alltransactions.
Note
You need not remit the CENVAT to the excise department
immediately, so maintain the credit account for transaction
type DLFC as an excise duty interim account. This will be set
off when you remit the duty.
Config setting needed to be done in order to get the Excise
Details Screen in Material Master.

Even though this functionality is available in enterprise

version, a small config step has to be made in Screen
Sequences for Material Master.

Following document helps you to do this configuration.

? Material Master ? Logistics General ?1. Go to IMG Define

Structure of Data Screen for each?Configuring the Material
master Screen Sequence.
2. Select your screen sequence. Usually it would be 21. Select
the same and click on Data Screen in the left frame.
3. Once the data screens are exhibited, select data screen no.
 15, ie. SSq. 21and Scrn 15, which is "Foreign Trade: Import
Data". Select the same and click on Subscreens in the left
frame.
4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001
and select the same. Click on tab view subscreen and ensure
that the subscreen is blank.
5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 -
0001 and instead add SAPLJ1I_MATERIAL_MASTER and in the
screen no. 2205.
6. Save the setting.
7. Create a Material Master and check whether in Screen
Foreign Trade - Import, Excise related subscreen appears.

Back to ERP Operation Home.

Escise Invoice number range

T.Code: SNRO
J_1I57FC 57FC Number Range Object
J_1IARE1 ARE1 Doc No object based on Series Group
J_1IARE3 ARE3 Doc No object based on Series Group
J_1IBOND Excise Bonding: Bond number object
J_1ICERT Withholding Tax Certificates (India)
J_1ICHLNNO Internal number range for challans
J_1ICONPLA Consolidated PLA serial no. generation
J_1IDEPINV Excise Invoice Number for Depot Invoices
J_1IEXCEXP Export excise invoice number range
J_1IEXCINV Excise invoice number
J_1IEXCLOC Local excise invoice numebr range
J_1IEXCTST Excise invoice with intervals
J_1IEXINEX Excise invoice number for export
J_1IINTNUM Internally document number to be generated
J_1IINTPR2 Despatch serial number
J_1ILIC Excise Bonding: License number object
J_1IPLA2 PLA part II number range object
J_1IRG1 RG1 Number range object
J_1IRG1_T No. Range for RG1 - Excise group / Material
J_1IRG23A1 RG23A part 1 no. range object
J_1IRG23A2 RG23A part II number range object
J_1IRG23C1 RG23C part I number range object
J_1IRG23C2 RG23C part II number range object
J_1IRG23D Folio Numbers for RG 23D

Hi,
CIN Setting:

Check Calculation Procedure

In this activity, you can check and, if necessary, change
existing procedures for tax calculation.
Standard settings
Calculation procedures containing the necessary
specifications for the calculation and posting of taxes on
sales/purchases have already been defined in the standard
SAP system for certain countries. Every calculation
procedure groups several tax types together into a condition
type (for example, output tax or input tax) in the calculation
procedure, and determines calculation rules for it.
The calculation procedure determines for which amount the
individual condition types are to be calculated. This can be
the base amount (total of the expense items and the
revenue items) or a subtotal. The entry in column FrmLvl,
determines for which amount tax is calculated.
Note
In this activity, the condition types for the check and the
possible change provided in the standard system are also
displayed. Here, for example, the condition calculation rule,
or for which base amount the tax is calculated is determined
(= condition type).
Recommendation
If possible, do not change the condition types and
calculation procedures provided in the standard system.
Only check the standard condition types and calculation
procedures regarding whether you can use them for your
requirements. If necessary, make changes.
Activities
If you cannot use the standard settings, change the
condition types and calculation procedures delivered to
meet your requirements.

Procedure (pricing, output control, acct. det., costing,...)

Specifies the conditions that are allowed for a document and
defines the sequence in which they are used.
Example
Procedures are used, for example, in the following
applications:
· Pricing in sales and distribution
· Applying overhead in Product Costing (costing sheets) and
for CO internal orders
· Calculating accrued costs in Profitability Analysis
· Output control (printed confirmations, EDI messages,
electronic mail)
· Account determination
· Calculating taxes on sales/purchases
· Calculating accruals in Cost Center Accounting
· Pricing for resource planning

Definition: condition type

Controlling (CO)
A distinction, in overhead calculation, is made between:
· Base condition types, which determine the object for which
the overhead is to be calculated
· Overhead condition types, which define the percentage
overhead to be applied
In resource planning, a condition type determines the types
of resource prices that are stored in the SAP System. These
can be absolute or percentage values, for example.
Real Estate Management (RE)
An exact definition of a condition that specifies the amount
paid for a specific service.
Condition types include:
· Basic rent
· Advance payment for operating costs
· Pest control
Sales and Distribution (SD)
A characteristic of a condition.
For example, in pricing, different condition types are used to
distinguish between a discount that refers to a net price and
a discount that refers to a gross price.
Treasury (TR)
A characteristic of a condition used to classify financial
transactions.
Typical examples of condition types are interest, dividends,
or full repayment upon maturity. The various parameters
specified for the individual condition types determine how
the flows are calculated in the cash flow.
Return ->
Definition: condition_type
Condition type
The condition type is used for different functions. In pricing,
for example, the condition type lets you differentiate
between different kinds of discount; in output
determination, between different output types such as order
confirmation or delivery note; in batch determination,
between different strategy types.

Access sequence
With the access sequence you define
· the condition tables used to access the condition records
· the sequence of the condition tables
· which field contents are the criteria for reading the tables

Assign Country to Calculation Procedure

In this activity, you enter the key for the calculation
procedure which determines the conditions which are
allowed per document and which defines the sequence of the
conditions in the document for each country.
Requirements
Each calculation procedure which you enter must contain the
necessary specifications for calculating and posting the
taxes on sales/purchases. For more information on this, read
the chapter "Create calculation procedure".
Activities
1. Assign a procedure for tax calculation to every country
with which your company has business dealings.
2. Make sure that the corresponding data for calculating
taxes is stored for each calculation procedure which you
enter here.

Check and Change Settings for Tax Processing

In this activity you make the necessary specifications for
posting taxes. In doing this you specify under a process key
the following indicators:
· Tax type
Output tax, input tax, additional taxes, or "not tax-relevant"
can be specified as the tax type.
· Nondeductibility of tax amounts
For this, tax amounts are marked as not deductible.
· Posting indicator
Here you specify whether the tax amount is posted
separately or distributed to expense or revenue items.
· Tax not relevant to cash discount (Not discount relevant)
This indicator is set only for Canada. If you select it, the
system does not take into account the corresponding tax
amount when determining the tax base.
Standard settings
Process keys with the most important characteristics for tax
amounts have already been set in the standard SAP system.
Recommendation
Do not change the standard settings. Check whether you can
use these process keys for your company, making changes
only if necessary.
Activities
If you cannot use the standard settings, use new process
keys and enter them in your calculation procedure. Do not
change the standard SAP process keys.
Note
You must make enhancements to the standard settings if
you want to specify a new account key in the "Create
calculation procedure" activity. You must create and
maintain this key beforehand in the "Settings for tax
processing" activity.
Internal processing key
The internal processing keys are used by the system to
determine accounts or posting keys for line items which are
created automatically.
The processing keys are defined in the system and cannot be
changed by the user.
Definition: posting key
Financial Accounting (FI)
A two-digit numerical key that determines the way line items
are posted.
This key determines several factors including the:
· Account type
· Type of posting (debit or credit)
· Layout of entry screens
Return ->
Definition: posting_key

Maintain Excise Registrations

Use
In this IMG activity, you maintain the data relating to your
excise registrations.
Activities
Enter each of your excise registrations, specifying a four-
character code for each.

Definition: excise registration

Financial Accounting (FI)
An entity in India that is entitled by law to produce any
goods liable to excise.
Each entity is assigned its own excise registration number.
Every factory that manufactures excisable goods is required
to register separately, so that a business with seven
factories requires seven registrations.
Return ->
Definition: excise registration
Maintain Company Code Settings
Use
In this IMG activity, you maintain the data relating to your
company codes.
Maintain Plant Settings
Use
In this IMG activity, you maintain excise information relating
to your plants.
Maintain Excise Groups
Use
In this IMG activity, you define your excise groups. For each
excise group, you can also control how various excise invoice
transactions will work.
Definition: excise group
Financial Accounting (FI)
A unit within an excise registration, in India, which keeps its
own set of excise records.
Whereas the excise registration reports to the excise
authorities, the excise group is a purely internal
organizational unit. Each excise group keeps records of all
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.
Return ->
Definition: excise group
Maintain Series Groups
Use
In this IMG activity, you define the different excise series
groups within your company. Series groups allow you to
maintain multiple number ranges for the outgoing excise
documents.
Based on excise regulations and exemptions from the
authorities you can maintain multiple number series for
outgoing documents. But each of these series has to be
declared to the excise authorities.
Activities
· Define excise series groups based on type of outgoing
document
· Assign series group to excise registration ID
· If no financial postings are required for an Excise invoice in
this seris group then you tick the 'No utilization' indicator.
· If the CENVAT has to be paid immediately and you need not
wait for the Fort nightly payment then mark the 'Immediate
Utilization' indicator.
Example
You could define two series groups, group 001 for excise
invoices, and group 002 for 57 F4 documents.
Maintain Excise Duty Indicators
Use
In this IMG activity, you maintain the excise duty indicators.
Maintain Postal Addresses
Use
In this IMG activity, you maintain the addresses of various
customs and excise organizations that your company deals
with.
You use these addresses in the ARE Documents functions.
When you create an ARE-1 or ARE-3, you enter the address
of the excise department and the customs department
involved in the export process. The system then prints their
names and addresses on the AREs.
You can then define a default local excise department for
each excise group and a default customs department for
each series group.
Definition: ARE-1 document
Logistics - General (LO)
A form, in India, that companies have to fill out when they
remove excisable goods from their manufacturing plants for
export.
The form exempts them from paying excise duty when they
remove the goods from their premises.
Return ->
Definition: ARE-1 document
Definition: ARE-3 document
Logistics - General (LO)
A form, in India, that allows companies to sell otherwise
excisable goods from their premises without paying basic
excise duty. The buyer of the goods must be in possession of
a deemed export license.
The ARE-3 states what goods are being removed and which
deemed excise license covers it.
Return ->
Definition: ARE-3 document
Maintain Subtransaction Type with Text
Sub Transaction Type
Sub transaction type is used for multiple purposes
Subcontracting:
It determines the subcontracting attributes and determines
the accounts for the posting while doing a sub contracting
transaction.
Excise removals
Sub transaction type is also used for determining the
accounts while doing excise removals.
With in CIN the account determination is based on the
transaction type. So normally you can have a single set of
accounts for Excise utilization. In case you need alternate
account determination for handling various scenarios you
can define sub transaction types. The sub transaction types
and corresponding account assignments needs to be
maintained in CIN customization

Select Tax Calculation Procedure

Use
In this IMG activity, you specify which tax procedure you
want to use for determining excise duties and sales taxes on
input materials in India.
· If you use condition-based excise determination, use a copy
of the tax procedure TAXINN.
· If you use formula-based excise determination, use a copy
of the tax procedure TAXINJ.
This tax procedure also supports condition-based excise
determination, so that you can work with both concurrently.
We strongly recommend that new customers use condition-
based excise determination. Note that once you have started
using a tax procedure, you cannot switch to another one,
otherwise you will not be able to display old documents.
Definition: condition-based excise determination
Logistics - General (LO
A method that the system uses of determining excise duty in
India.
This method requires you to create condition records for
each combination of vendor or customer and material (and
possibly other conditions).
When you create a purchasing document, the system calls
the tax procedure assigned to India. The tax procedure finds
all of the condition records that you have created for that
combination of vendor and material.
When you create a sales document, the excise duties and
sales taxes are determined by the pricing procedure (not the
tax procedure).
Return ->
Definition: condition-based excise determination
Definition: formula-based excise determination
Logistics - General (LO)
A method that the system uses of determining excise duty in
India.
This method was used in the Country Version India Add-On
and requires you to maintain additional data in the Excise
Rate Maintenance transaction, J1ID.
When you create a purchasing document, the system calls
the tax procedure assigned to India. Each of the excise
duties in the tax procedure has its own condition types, and
each condition type is assigned to a formula. This formula
instructs the system to calculate the excise duty using the
data that you have maintained in the Excise Rate
Maintenance transaction.
When you create a sales document, the system determines
the excise duties and sales taxes using the pricing procedure
(not the tax procedure).
Return ->
Definition: formula-based excise determination
Maintain Excise Defaults
Use
In this IMG activity, you define which tax procedure and
pricing condition types are used in calculating excise taxes
using formula-based excise determination.
Activities
If you use condition-based excise determination, fill out the
CVD cond. field and leave all the others blank.
If you use formula-based excise determination, fill out all of
the fields as follows:
· Enter the tax procedure and the pricing conditions that are
relevant for excise tax processing.
· Specify the purchasing and sales conditions types used for
basic excise duty, additional excise duty, special excise duty,
and cess.
· Specify the conditions in the sales order that are used for
excise rates.
· Specify the countervailing duty condition type used for
import purchase orders.
See also
SAP Library -> Logistics -> Country Versions -> Asia-Pacific -
> India -> Materials Management (MM) -> Condition-Based
Excise Determination and -> Formula-Based Excise
Determination.

Definition: basic excise duty

Financial Accounting (FI)
The main type of excise duty in India.
It is levied on a wide range of products, for example,
foodstuffs, metals, jewellery, leather goods, and machinery.
Return ->
Definition: basic excise duty
Definition: additional excise duty
Financial Accounting (FI)
A form of excise duty, in India, levied on a select range of
products, for the most part, textiles.
Return ->
Definition: additional excise duty
Definition: special excise duty
Financial Accounting (FI)
A form of excise duty in India on a limited number of goods,
mostly luxury goods, including pan masala, sparkling waters,
furs, and yachts.
Return ->
Definition: special excise duty
Definition: cess
Financial Accounting (FI)
In India, a tax on the manufacture of certain products,
mostly foodstuffs.
Return ->
Definition: cess
Definition: countervailing duty
Financial Accounting (FI)
A form of excise duty imposed on imports that are
subsidized by the country in which they were manufactured.
Countervailing duty (also known as CVD) is intended to make
the imports more expensive, thereby redressing any
competitive advantage they might have over goods
produced locally.
Return ->
Definition: countervailing duty
Define Tax Code for Purchasing Documents
Use
In this IMG activity, you define a tax code for the purposes of
calculating excise duty when you enter purchasing
documents.
Only carry out this activity if you use condition-based excise
determination.
Activities
Create a new tax code, and set the tax code type to V (input
tax). Do not make any other settings for it.
See also
SAP Library -> Logistics -> Country Versions -> Asia-Pacific -
> India -> Materials Management (MM) -> Condition-Based
Excise Deter

Sales Tax Code

The tax code represents a tax category which must be taken
into consideration when making a tax return to the tax
authorities.
Tax codes are unique per country. The tax rate calculation
rules and further features are stored in a table for each tax
code.
Procedure
For tax-exempt or non-taxable transactions, you should use
tax codes with a 0 percentage rate if the corresponding
transactions are to be displayed in the tax returns.
Note
You must define new tax codes if tax rates are changed by
the state. The old codes with the old tax rates must remain
in the system until no more open items which use this tax
code exist.
Definition: tax code
Financial Accounting (FI)
A two-digit code that represents the specifications used for
calculating and displaying tax.
Examples of the specifications defined under the tax code
are:
· Tax rate
· Type of tax (input tax or output tax)
· Calculation method (percentage included or percentage
separate)
Return ->
Definition: tax_code
Definition: tax rate
Financial Accounting (FI)
The percentage rate used to calculate the tax amount.
Return ->
Definition: tax_rate

Assign Tax Code to Company Codes

Use
In this IMG activity, assign the tax code for purchasing
documents to the company codes where it will be used.
Only carry out this activity if you use condition-based excise
determination.
See also
SAP Library -> Logistics -> Country Versions -> Asia-Pacific -
> India -> Materials Management (MM) -> Condition-Based
Excise Determination
Classify Condition Types
Use
In this IMG activity, you specify which condition types you
use for which sort of tax. Note that this only applies to
condition types that you use with the new excise
determination method.
The system uses this information when you create a
document from another one. For example, when you enter
an incoming excise invoice from a purchase order, or when
you create an outgoing excise invoice from a sales order, the
system determines the various excise duties in the excise
invoice using the information that you have entered here.
In addition, when you create a purchasing document, the
system only uses the condition types that you enter here.
· For taxes on purchases, use the condition types contained
in the tax procedure.
· For taxes on sales, use the condition types contained in the
pricing procedures.
Standard settings
The standard system comes with sample settings for the tax
calculation procedures and pricing procedures.
Use these settings as a basis for your own.
Maintain Chapter IDs
Use
In this IMG activity, you maintain the chapter IDs and the
corresponding descriptions as per the schedules published
by the Central Board of Excise and Customs.

Definition: chapter ID
Logistics - General (LO)
The number given to a material in the schedules of materials
published by the government of India.
The schedule lists all materials involved in manufacturing,
input materials and output materials alike. It shows how
much excise duty is levied on each material.
Each material in the schedule is assigned its own
identification code, called "chapter ID."
Example
The schedule contains an entry for ceramic roofing tiles,
which are liable to basic excise duty at 16%. The chapter ID
associated with these tiles is 6903.10.
Return ->
Definition: chapter ID
Assign Users to Material Master Screen Sequence for Excise
D
Use
In this IMG activity, you customize the material master data
so that it shows the information relating to excise duty.
Standard settings
Country Version India comes with a screen sequence (IN)
that shows the excise duty fields. You have to assign it to
each of your users.
Activities
1. Double-click User Screen Reference.
2. Assign all users who need to see the excise duty
information to the screen reference IN.
Example
Name Screen Reference
MISHRA IN
Screen Sequence Number
Alphanumeric key identifying the screen sequence. The
screen sequence defines the sequence of information units
in the material master dialog. A screen sequence is made up
of data screens. For information on the screen sequences
defined in the standard R/3 system, see the IMG
documentation Configuring the Material Master.
Note
When creating a screen sequence, use an alphanumeric key
beginning with the letter Y or Z (customer name range). This
key cannot subsequently be changed.
Dependencies
You can assign screen sequences to users in the IMG activity
Assign Screen Sequences to Users/Material
Types/Transactions/Industry Sectors.
Screen reference depending on the user
Grouping of users that determines what screens are
displayed in accordance with the user master record when
you maintain material master records. It also determines the
order in which the screens appear.
Definition: user master record
User and Authorization Management (BC-SEC-USR)
Record that contains important master data for a user in the
SAP System.
The user master record contains the assignment of one or
more roles to the user. This is how a user menu and the
corresponding authorizations for the activities contained in
the user menu are assigned to the user. Only users who
have a user master record can log on to the system.
Return ->
Definition: user_master_record
Define Form Types
Use
In this IMG activity, you define which form types you want to
record in the system. You can only use form tracking for the
form types that you enter here.
Example
· Form type: CT3
· Form description: Concessional tax form
· Status: Receive
Define G/L Accounts for Taxes
Use
In this IMG activity, you specify which G/L accounts you will
use to record which taxes.
Requirements
You have set up G/L accounts for each of the processing keys
listed below.
Activities
Assign an account to each of the following posting keys. The
accounts for VS1, VS2, and VS3 are used as clearing
accounts during excise invoice verification.
· VS1 (basic excise duty)
· VS2 (additional excise duty)
· VS3 (special excise duty)
· VS5 (sales tax setoff)
· MWS (central sales tax)
· MW3 (local sales tax)
· ESA (service tax)
· ESE (service tax expense)
Specify Excise Accounts per Excise Transaction
Use
In this IMG activity, you specify which excise accounts (for
excise duty and CENVAT) are to be posted to for the various
transaction types. Enter all the accounts that are affected by
each transaction type.
If you use subtransaction types, enter the accounts for each
subtransaction type as well.
Activities
Transaction type UTLZ is used for determining accounts only
while posting excise JVs and also if the payment of excise
duty has to be done fortnightly.
The fortnightly CENVAT payment utility picks up the credit
side accounts from the transaction types of GRPO, EWPO,
and TR6C for determining the CENVAT and PLA accounts.
There is no separate transaction type for fortnightly
payment.
Example
Excise TT DC ind Account name
GRPO CR CENVAT clearing account
GRPO CR RG 23 BED account
GRPO DR CENVAT on hold account
Specify G/L Accounts per Excise Transaction
Use
In this IMG activity, you assign the excise and CENVAT
accounts to G/L accounts.
When you come to execute the various transactions, the
system determines which G/L accounts to post to by looking
at the:
· Excise group
· Company code
· Chart of accounts
Furthermore, if you want separate account determination
settings within an excise group, you can also use sub
transaction types.
Requirements
You have already:
· Defined the G/L accounts
· Defined the excise groups
· Maintained the transaction accounts
Activities
For each excise group, assign the excise and CENVAT
accounts to G/L accounts. For most businesses, one set of
accounts will suffice for alltransactions.
Note
You need not remit the CENVAT to the excise department
immediately, so maintain the credit account for transaction
type DLFC as an excise duty interim account. This will be set
off when you remit the duty.

Define Processing Modes Per Transaction

Use
In this IMG activity, you specify which processing modes the
user can use in the various Incoming Excise Invoice
transactions.
This way, you can tailor the transaction to what your users
have to do.
Standard settings
The system comes with three standard transactions relating
to the Incoming Excise Invoices function (those that are
included in the role SAP_CIN). The processing modes
available in these transactions are as follows:
· J1IEX_C
This transaction is for excise clerks: users of this transaction
can only capture and display excise invoices.
· J1IEX_P
This transaction is for excise supervisors: they can change,
display, cancel, and post excise invoices.
· J1IEX
In this transaction, users can capture and post excise
invoices, as well as displaying, changing, and canceling
them.
Activities
If the standard settings meet your requirements, do not do
anything.
Otherwise, you can adjust the standard settings or you can
create your own transactions. To do so:
1. In Maintain Transaction, create a new transaction by
making a copy of one of the standard transactions. Give the
new transaction a transaction code of your choice.
2. In this activity, enter data as follows:
o Tcode: The transaction code that you have just created.
o Proc. mode: Specify what the users of the transaction will
do with the excise invoices.
o Active: Select this indicator to activate the setting.
Example
You might want to create a transaction that only allows
users to display excise invoices.
Define Reference Documents Per Transaction
Use
In this IMG activity, you specify for each combination of
transaction and processing mode which reference
documents you want the users to be able to use.
Activities
If the standard settings meet your requirements, you do not
have to do anything.
Otherwise, add the entries that you need to the table: For
each transaction, make one entry per combination of
processing mode and reference document. Activate each
entry for it to work.
Definition: excise invoice reference document
Logistics - General (LO)
A document, in India, that you refer to when you enter an
incoming excise invoice.
If you have already posted the goods receipt, you can use
the goods receipt document as the reference document.
Otherwise, you can use the purchase order (or another
purchasing document, such as a be a contract or a
scheduling agreement).
Example
In the SAP System, you create a purchase order for 100 bags
of sand and send the order to your vendor. Two weeks later,
the vendor delivers the sand, accompanied by an excise
invoice.
When you enter the excise invoice in the system, you specify
the number of the original purchase order: this is the
reference document.
Return ->
Definition: excise invoice reference document
Maintain Rejection Codes
Use
In this IMG activity, you define the rejection codes that are
used in the Incoming Excise Invoices transaction.
Activities
For each rejection code, enter a code and a description. You
can also specify whether the excise duty in the invoice is to
be posted to the CENVAT on hold account, instead of the
CENVAT clearing account.

Specify Which Movement Types Involve Excise InvoicesUse

In this IMG activity, you specify which movement types
relating to goods receipts involve excise invoices.
The system uses this information during the goods receipt
procedure. When you post a goods receipt using one of the
moevement types that you have specified here, the system
prompts you to enter the excise invoice number.
Note
This option cannot be used for processing goods receipts
without purchase orders.

Maintain Default Excise Groups and Series Groups

Use
In this IMG activity, you specify which excise group and
series group you want to appear in these fields by default.
You can make separate settings for different combinations
of sales organization, distribution channel, division, and
shipping point.
Activities
This activity is optional, unless you want the system to
automatically create outgoing excise invoices when you
create a customer invoice.
In this case, you must also make the appropriate setting in
Customizing for Excise Duty, by choosing Basic
Subcontracting Attributes
Use
The subcontracting attributes help determine conditions for
a combination of an excise group, a transaction type, and a
subtransaction type.
The conditions such as the number of excise items per
subcontracting challan, if the nonexciseable materials have
to be filtered or not when the subcontracting challan is
created, the movement type groups for issues and receipts
and the hierarchy of determining the excise base value are
mentioned here.
Requirements
Before you continue with this activity, work through the
following activities:
· Materials Management -> Inventory Management and
Physical Inventory -> Goods Issue / Transfer Postings ->
Define Screen Layout.
For the movement type 541, maintain the field Purchase
Order as an optional entry or as a required entry.
· Materials Management -> Inventory Management and
Physical Inventory -> Output Determination ->Maintain
OutputTypes.
Maintain the output type. On the Default Values tab,
maintain the dispatch time and the transmission medium.
Maintain the print parameter on the Print tab. This output
type has to be maintained in this activity here.
· Materials Management -> Inventory Management and
Physical Inventory -> Output Determination ->Assign Forms
andPrograms.
Maintain the Program, FORM routine, and the form for the
output type.
· Materials Management -> Inventory Management and
Physical Inventory -> Output Determination ->Printer
Determination -> Printer Determination by Plant / Storage
Location.
Enter the output device that you use.
Settings -> Maintain Excise Groups, and selecting Create EI
(Create Excise Invoice Automatically).
Maintain Movement Type Groups
Use
In this IMG activity, you group movement types together to
form movement type groups.
Definition: movement type
Inventory Management (MM-IM)
A classification key indicating the type of material
movement (for example, goods receipt, goods issue, physical
stock transfer).
The movement type enables the system to find predefined
posting rules determining how the accounts of the financial
accounting system (stock and consumption accounts) are to
be posted and how the stock fields in the material master
record are to be updated.
Return ->
Definition: movement type

Utilization Determination
Use
In this IMG activity, you specify which CENVAT accounts are
to be debited by the Fortnight Utilization of CENVAT report:
When the report calculates how much excise duty you must
remit, it automatically proposes which CENVAT accounts the
duty should be debited to. Here, you specify those defaults.
You can either:
· Debit all the excise duty to one account
· Debit the excise duty to more than one account, in which
case you specify which percentage is to be debited to each
account
Example
If you want 50% of basic excise duty (BED) to be debited to
the RG 23A account and the remaining 50% to the RG 23C
account, you would make the following settings:
Acct name BED perc.
RG 23A BED account 50
RG 23C BED account 50
Alternatively, to debit all of the BED to the RG 23A account,
and then RG 23C account, if there is not enough in the RG
23A account, you would make the following settings:
Acct name BED perc. +
RG 23A BED account X
RG 23C BED account X
When you come to run the report, the system takes the RG
23A account because it is the first one you have entered. If
this account does not cover the BED, the system takes the
RG 23C account instead.
Maintain Minimum Balances for Excise Accounts
Use
In this IMG activity, you can maintain minimum balances in
your excise accounts. When the balance in these accounts
during utilization falls below this level, the system
automatically utilizes funds in the PLA account.
Activities
Maintain the minimum balance amount for the excise
accounts. If you have more than one excise group, you can
maintain different minimum balances.
Specify SAPscript Forms
Use
In this IMG activity, for each of your company codes, you
specify which SAPscript forms the system prints the excise
registers with.
Standard settings
Country Version India includes a number of sample SAPscript
forms and printing programs, which you can use as follows:
Reg. name Lay. no. Form Tcode/Prog
RG 23A Part I 1 J_2IRG23A_PART1 J_2IRAP1
RG 23C Part I 1 J_2IRG23C_PART1 J_2IRCP1
RG 23A Part II 1 J_2IRG23A_PART2 J_2IRAP2
RG 23C Part II 1 J_2IRG23C_PART2 J_2IRCP2
PLA 1 J_2I_PLA J_2IPLA
RG 23 D 1 J_2I_RG23D J_2IRG23
RG 1 1 J_2I_RG1 J_2IRRG1
RT 12 1 J_2I_RT12_ABSTRA J_2IRT12
RT 12 1 J_2I_RT12_ABSTRA J_2IRT12
RT 12 1 J_2I_RT12_3 J_2IRT12
The layout description can be left blank or an appropriate
description maybe filled in. You may not change the register
name. You can have your own layouts and maintain the
name here. If the output device and number of copies are
maintained it is automatically picked up for printing.
Number Ranges
You can maintain the number ranges for all CIN Number
range objects using this transaction
Activities
Please maintain the number ranges for the folllowing objects
The no nr has to be '01' for all
1. j_1iintnum
At an Excise group
1. j_1irg23a1
2. j_1irg23a2
3. j_1iRG1
4. j_1irg23c1
5. j_1irg23c2
6. j_1ipla2
7. j_1iintpr2
8. j_1irg23d
9. j_1irg1_t ( material level)
10. j_1iconpla ( if Consolidated PLA is used )
At Series group
1. j_1iexcloc
2. j_1iexcexp
3. j_1idepinv
4. j_1i57Fc ( 57F Challans )

Transaction Codes for India

Transaction
Action

J1I2
Prepare a sales tax register

J1I3
 Create outgoing excise invoices in batches

J1I5
Update the RG 1 and Part I registers

J1IEX
Incoming Excise Invoices (central transaction)

J1IEX_C
Capture an incoming excise invoice (excise clerk)

J1IEX_P
Post an incoming excise invoice (excise supervisor)

J1IF01
Create a subcontracting challan

J1IF11
Change a subcontracting challan

J1IF12
Display a subcontracting challan

J1IF13
Complete, reverse, or recredit a subcontracting challan

J1IFQ
Reconcile quantities for subcontracting challans

J1IFR
List subcontracting challans

J1IH
Make a CENVAT adjustment posting

J1IIN
Create an outgoing excise invoice

J1IJ
Assign excise invoices to a delivery for sales from depots

J1INJV
Adjust withholding tax Item

J1INREP
 Reprint a withholding tax certificate for a vendor

J1IQ
Year-End Income Tax Depreciation Report

J1IR
Download register data

J1IS
Process an excise invoice (outgoing) for other movements

J1IU
Process exemption forms

J1IW
Verify and post an incoming excise invoice

J1IX
Create an incoming excise invoice (without reference to purchase
order)

J2I8
Transfer excise duty to CENVAT account

J2IU
Remit excise duty fortnightly

J2I9
Monthly CENVAT return

J1IG
Excise invoice entry at depot

J1IGA
Create additional excise entry at depot

J2I5
Extract data for excise registers

J2I6
Print excise registers

CIN SD
How does CIN determine the tax rates?
CIN determines taxes based on the chapter-id of the material. There are 2 levels
for rate determination. First the system will check if there is an exceptional rate
available. If this is available then that rate is picked up. This rate could be for a
material or material and customer combination. If there are no exceptions then
the system looks for chapter-id of that material. The customer will have an excise
tax status which along with the plant status will give a final excise status. Based
on the excise status and the chapter-id the rates are maintained.
Can I change the tax rates retrospectively?
You can change the excise rates with any given validity period. After making the
changes you will have to update the sales orders if the new tax rates have to be
considered for future deliveries.
Can I have a different rate for incoming and outgoing transactions for the
same material?
You can maintain exceptional rates for either incoming or outgoing based on the
volume of exceptions data.
What do I do if I have one chapter-id for incoming and another for outgoing
and material code is the same?
Along with exceptional rate maintenance you can maintain the chapter-id which
should be used for the outgoing transactions. This chapter-id will be used only for
copying on to the document and will not be used for rate determination.
Can I have some more additional rates?You can maintain multiple excise
indicators and based on that you can have additional
rates.
What will happen if I have multiple rates with overlapping validity periods
for the same chapter-id and tax indicator?
While picking up the rate for a given transaction system will check for that validity
period where the valid from is the maximum but with in the pricing date and
based on that pick up the rate applicable.
How does CIN do the pricing?
CIN uses R3 condition technique for pricing along with the pricing formulae.
Details are available in the CIN knowledge bank. Template pricing procedures
are provided for various sales scenarios.
How many tax codes do I need?
The number of tax codes will directly depend on how you want to account the
sales tax. You can have CST and LST being determined by the same tax code if
both can be accrued into the same account. Instead if you need separate
account determination then you need separate tax codes. Also based on the tax
concessions available you need to decide the various tax rates which need to be
mapped.
How do I open up more than one tax classification?
CIN comes with default customization to open up the tax classificvation fields.
The procedure is as follows. You need to define as many condition types as the
number of tax classification fields. Tbe following procedure could be used.
• SPRO - Sales and distribution -Basic functions-Taxes - Tax
determination rules For Country 'IN' make entries as follows (This
is precustomized in client 000 )
- Seq 1 - UTXJ

- Seq 2 - JTX1

- Seq 3 - JTX2

- Seq 4 - JTX3

In SPRO - Sales and Distribution - Basic functions - Taxes

Determine tax relevancy of master records
How do I handle concessional excise?
This is explained in SAP note 335577. Having opened up the new tax
classification
fields you might have to do the following
--> Customer taxes maintain the possible values for JTX3 . Each unique value
should denote one concession rate. For eg 1 - normal excise duty

--> Maintain the JTX3 value against the form code in J1IT -Define Form types

Maintain the customer tax classification in customer master if the customer has
got
excise exemption

--> Maintain the excise indicator in J1ID for the customer and form code and this
indicator gives the final indicator

--> Forms database is used for determination of whether the form has arrived or
not at the time of billing.

--> The tax classification value gets defaulted from the customer master in the
sales order. This can be changed in the header
billing data if required
How do I handle sales tax concessions?
SPRO - Sales and distribution -Basic functions-Taxes - Tax determination rules
For Country 'IN' make entries as follows (This is precustomized in client 000 )

- Seq 1 - UTXJ

- Seq 2 - JTX1

- Seq 3 - JTX2

- Seq 4 - JTX3

-> Taxes - Determine tax relevancy of master records - Customer taxes maintain
the possible values for JTX1 and JTX2. Each unique value should denote one
concession rate. For eg 1 - 4% . Multiple forms could correspond to a single rate.
JTX1 could be used for CST and JTX2 for LST. (UTXJ could be freely used by
the customers as earlier )

-> Maintain the tax classification in customer master as well as

material master ( Sales org data 2)

Build access sequences based on these new fields to point to the correct sales
tax code You might have to have a new access based on region of delivering
plant and region of ship to party
How does CIN handle Indian VAT?
VAT is handled separately & not linked to CIN..
When I create a new tax code the excise lines are grey and I cannot
maintain any value. What should I do?
This is happening because the Excise conditions for sales are statistical in the
tax procedure for India. So while creating a new tax code you need to open the
tax procedure remove the statistical flag, maintain 100% for all excise conditions.
After saving the tax code you need to make the conditions statistical once again.
When I release the billing document to accounting there is an error that the
account key is missing?
This is happening because one or more lines in the tax procedure has a
condition with a value but is not marked statistical. You need to check whether
the conditions JMOD, JAED, JSED and JCES are marked statistical in the tax
procedure. You cannot rectify the documents which are in error. The correction
takes into effect only the future orders.
When I release to accounting I get a message tax amount greater than tax
base?
This is happening because the tax base for some tax condition is falling less than
the tax base amount. R3 does not allow the tax base to fall below the tax
amount. You need to check which condition is giving the problem and based on
that you can verify the tax procedure from-to settings.
Do I need to maintain the chapter-ids for each plant or can it be left blank?
If the same chapter-id is applicable for the material in all the plants then you need
not maintain the chapter-ids for all the plants. You can leave the plant blank.
When I try printing the excise register nothing comes up?
Check whether you have maintained the opening balance for the item in the
corresponding register (Table J_2IACCBAL for register account balances). Next
check whether you have maintained the sapscript forms which are used for
printing the registers in the CIN configuration. Finally check whether the
extraction has been done for the period.
When I try printing the excise invoice the list line turns red and nothing
happens?
This is becaue you have not maintained the condition record for output
determination. You need to maintain the condition record for output determination
at the sold to party level. Also for the documents created already you can go into
Billing header – output and manually enter the output type j1io and save. Later
the excise invoices can be printed.
When I try to create RG1 issues entry the line turns red and nothing
happens?
This is happening because you are trying to create an issue entry and the stock
in the register is not enough to do the issue. So you need to first update RG1
with the receipts and then go into the issues.
I have extracted the register data once but now I have added more
transactions. Can I extract once more?
You can re-extract the data if you have added more transaction data for the given
period.
I am using another package for printing registers. Can I download the data
once again?
To prevent data inconsistency in the third party application CIN does not allow
you to re download the register data once it has already been downloaded.
What is the issue classification for RG1?
You need to classify the RG1 entries as to whether they are receipts from
manufacture or other receipts, clearances of various types so that they can be
reported under the various headings as required by the Excise commissionerate.
How do I maintain the opening balances for my register for the first time?
You need load them manually at the initial data upload.
How do I get the opening balance for every month?
CIN calculates the opening balance for reporting purposes based on the
transaction s extracted in any period.
Are opening and closing balances of reghister available for me for
reporting?
You must not pick up the opening and closing balances that are calculated by
reporting because they might get changed if some one does a re extract. So they
need to be recomputed dynamically. They are not stored.
Can I round the duty at the header level?
Duty can be rounded off in CIN only at the item level. Due to technical reasons
duty round off is not provided at the header level.
When I create an excise invoice for exports what exchange rate will the
system take?
System picks up the exchange rate which is maintained in the CIN configuration
data for the company code.
With fortnightly utilization why do I need a part2 entry at the time of Excise
invoice creation?
With fortnightly utilization you do not create an entry in the CENVAT or PLA
registers. Instead CIN keeps a separate Despatch register and generates
continuous serial numbers in this register that can be used for future
reconciliation.
Do I need to have balances in my CENVAT accounts at the time of Excise
invoice creation?
At the time of excise invoice creation the debit is being made into an Excise
payable account. So you need not have balances in the CENVAT account. You
need to have enough money at the time of fortnightly utilization or you should
have made a debit through TR6 into PLA.
What are the exceptional reports possible?
You can list all the billing documents for which excise invoice is not created. You
can get a list of all excise invoices for which billing document has been
cancelled., You can also have a report of all cancelled excise invoice for which
the billing document is still open.
Can I know which are the billing documents for which there is no excise
invoice?
Excise due list gives you all billing documents for which there is no excise
invoice.
Number range skipping happens for excise invoice. What could be the
reason?
CIN number ranges are defined as not buffered. You need to check if this has
been changed. If skipping happens never reset the number range.. you must
report the problem to SAP support immediately so that they can help you resolve
this.
While doing excise invoice creation I get an error message that system
failure during locking. What can I do?
While creating the excise invoice, at the time of saving system tries to lock the
GL account that is getting updated with the new balances. S probably some one
else could be changing the GL account data at that point of time. This is a very
short phenomena and is meant to keep the data consistency.
While doing depot sales invoice selection, list of invoices are not getting
displayed. Why?
You need to check the customization settings for LIFOor FIFO and the invoices
of which period you have set. Also you need to check the excise group which is
being used. System will show you only those excise invoices which belong to the
same excise group, plant, storage location and batch.
How do I handle the a-certificate at depot?
A certificates come when the goods are removed after paying a provisional duty.
When the final price is decided at the time of the order you need to pay the
balance of the duty. There is no facility at the moment to calculate the differential
duty. You have to make the payment manully using J1IS at the factory. Once this
is done you can go back to the depot and capture this extra payment into your
RG23D. This is recorded as a new serial no with in the original folio so that the
RG23D register value tally. At the time of selection of excise invoice for sale you
have the option to pick up the a-certificates for the excise invoice and then the
additional duty gets added into the invoice amount. Also this is reflected in the
RG23D register.
Is it possible to add some additional duty on to the depot invoice with out A
certificate?
No you need an A certificate if you have to get an additional duty in RG23D
invoice. Alternative is to write customer specific routines which are not supported
by CIN.
How do I handle the returns at depot?
If there are returns to depot, that can be captured as any other receipt. You can
enter the material document no of the return receipt and the data gets copid and
you can copy into RG23D.
How do I handle returns at factory?
There are no D3 procedures at the moment which is mandated by the excise
department. Legally you can take credit for all the receipts and then pay the duty
when it goes out after repair or to another customer. You can Excise invoice
without PO route to take the credit.
When I do excise invoice creation, the system issues a message not
enough balance. Why?
This does not happen any more. There was a need felt that we should check the
balance s even though we can pay the duty 15 days hence.
I am not able to save the excise invoice text?
You need to check the object type for the object id J1IN. this can be done by
checking the data of the view J_1IVTTXOB. The editor mode has to be set as
‘Application text with SAVE key ‘.
How can I include more text ids for the excise invoice?
You can use the CIN IMG text maintenance option and add more ids with
descriptors. For excise invoice creation the object is J1II. For depot receipts the
object is J1IG and for depot sales it is J1IJ.
Where does the excise invoice get the business area from?
Excise invoice does not allow entry of business area. The business area in the
billing document is automatically taken for the excise invoice.
Where does the excise invoice get the profit center from?
Excise invoice picks up the profit center from the billing document if it is available
there. If it is not available there then it looks at the plant specific material master
data and picks up if available.
What will the system do if I have not received the form at the time of
billing?
The system will first check in the Form type maintenance whether the form is
marked as required. This means that the form has to come by the time billing
happens. Once you receive the form you need to enter it into the forms data base
(J1IU) for the delivery document number. If the form receipt is not maintained
then the billing will do a repricing and charge full tax for the particular excise duty.

How does fortnightly utilization determine the accounts to be posted?

There is no transaction type for determining the accounts of the fortnightly
utilization. The credit account of the transaction type ‘DLFC ‘ is used as the debit
account here. For the credit side we pick the debit accounts from the GRPO,
EWPO and TR6C transactions. So it is mandatory that whether you use EWPO
or not you should have maintained the account determination for all transaction
tyes for a given excise group.
What is transaction type ‘UTLZ’ used for?
Transaction type UTLZ is used for determining the accounts when a JV is posted
with an option of fortnightly payment.
Can I have my own transaction types?
Transaction types are used internally by CIN for various pruposes. So you cannot
define your wn transaction types. Alternate account assignments can be done
using sub transaction types.
Where does RG1 get the data of packed/loose material ?
Initially when you upload the balance in RG1 you need to mention the material
form. Later the system assumes the same for for the same material code. If you
need to dynamically change this then you can make use of the user-exit. A
material can be marked either as packed or loose but not both.
What will batch utilization of modvat do?
Batch utilization is just an interface that helps you to complete the utilization of a
set of documents in one step. This simply triggers individual utilization as a BDC
so that the user interaction can be minimized.
What is the number range used for export excise invoice?
Export invoices uses the number range object j_1iexcexp where as the local
invoices uses the number range j_1iexcloc. Even though customers are free to
use the same number series now there is no bar from using separate series.
Can I create a zero duty excise invoice?
Zero duty invoices can be created both from sales as wellas using excise invoice
other movements based on the business requirement. These invoices do not
generate an accounting document.
Is it possible to cancel an excise invoice with zero duty?
There is no problem in canceling a zero duty excise invoice.
Where does the billing document get the account for excise duty payable?
The account determination rules of R3 billing is used for determining the account
for the excise posting line in a billing document. The CIN customization has no
role to play here.
How does the stock transfer get the assessable value from?
This is got using the condition base value formula. For this to happen you should
have maintained the assessable value in CIN master data.
How do I know whether SD route or mm route is followed for stock
transfer?
You need to check in SPRO – Materials Management – Purchasing – Set up
Stock transport order – Assign delivery type/checking. For SD order this will be
marked ‘A’
Based on the route followed how do I create an excise invoice?
If SD route is followed for stock transfer then you can use J1IIN to create excise
invoice. If MM route is used for creating stock transport order then you need to
use J1IS for creation of Excise invoice.
How to configure stock transport order?
Stock transport order is set up in SPRO- Materials management – Purchasing –
Set up stock transport order. Here first you have to define the sales area and the
default customer code. You have ato assign the order type to the checking rule.
Finally you need to maintain the delivery type for the order type.
I cannot create a proforma billing document for a replenishment delivery.
What has gone wrong?
Normal R3 setting does not allow a billing document to be created for a delivery
type NL. You need to change the customization settings of the item category type
NLN so that it becomes relevant for billing.
When I do a receipt at the depot from my factory how do I give the excise
invoice number?
If the excise invoice already exists in the R3 system then in the detail screen of
RG23D receipt you can directly enter the internal document number of the excise
invoice. This will automatically allow the entrie challan details to be copied.
Should I receive the full quantity at depot or transit loss is allowed?
You can receive some goods in the depot which is less than the dispatched. You
have the option to enter the receipt quantity as well as the challan quantity at the
time of RG23D receipt.
I want to calculate the excise duties at the time of export sales. What
should I do?
There is a calculate tax button on the utilization screen of Excise invoice
creation.. This option will calculate the taxes for an export invoice.
Can I use my own layout for printing sales excise invoice?
Yes. If you are using your own layout then you need ot maintain this in the output
determination procedure of billing documents for the output type j1i0.
Can I use my own layout for printing Excise invoice other movements?
Excise invoice other movements picks up the report layout from the output type
ZEXC which has been maintained against the SD output determination – Sales
documents. You can maintain your own layouts here and then they will be used
for printing.
Can I use my own layouts for register printing?
Yes you can have your own layouts. You need to maintain the same in the CIN
customization against the sap script form maintenance.
Can I change the posting date at the time of fort nightly utilization?
You can enter the posting date as per which you want the system to do the
fortnightly
posting.
Should I keep the fi/mm period open at the time of posting fort nightly
utilization?
The current period alone should be open at the time of fortnightly utilization. It is
also required that both MM as well as FI periods need to be open.
When I run fortnightly utilization the system is showing zero balance even
though there is some balance in the GL account?
The balances for utilization are picked up in CIN only when the MM period
closing is done for the previous period. For eg. If you r posting date is 5th Dec
and the November period is still open system will show zero balance.
Can I change the document type for the accounting document created at
the time of excise invoice creation?
Document type for excise invoice utilization is defined with in CIN customization
at the company code level. You can use your own document type.
Can I post the fort nightly utilization for individual excise invoices?
You can post the fortnightly utilization for individual invoices also. System give a
message that the CENVAT utilization is already doen. But this is configurable
and could be made a warning.
Can I reverse the fortnightly utilization done?
No you cannot reverse the posting doen with fortnightly utilization. Simulate
option is provided in this option for the user to check whether things are ok so
that the chances of error are minimal in the actual run.
Can I have excise rates more than 100%?
Yes you can have excise rates higher than 100% since some of the tobacco
items carry higher excise rates.
How do I map the tax classification to form types?
You can maintain it along with Form type definitions in CIN IMG.
Can I decide not to generate folio numbers at the time of RG23D creation?
Yes you can keep the customization option at the Excise group level blank and
also you can leave the user-exit open.
What will happen when I cancel a RG23D selection for sales already made?
If you are canceling a selection before posting then the RG23D register the
record will be removed. But if you have already done the posting then the RG23D
record is marked cancelled and the balance in the original invoice is inflated by
an equivalent amount.
Why there is no transaction type for J2IU?
Transaction type is used for account determination by CIN . This is an internal
entity for CIN and has no relevance to the business process. Since there is no
account determination need for J2IU there is no transaction type.

What should be my accounting entry in SD ?

For Factory Sale

During Billing Document

Customer Account Dr.
Sales Account Cr.
Cenvat Suspense Account Cr.

During Excise Invoice Creation

Cenvat Suspense Account Dr.
Cenvat payable Cr.

For TR6C Challan

PLA Account Dr.
PLA on hold Account Cr.

During Fortnightly Utilization

Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.

For Stock Transfer through SD

No Accounting entries for Performa Billing Document

During Excise Invoice Creation

Cenvat Suspense Account Dr.
Cenvat payable Cr.

For TR6C Challan

PLA Account Dr.
PLA on hold Account Cr.

During Fortnightly Utilization

Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.

Note: Cenvat Suspense Account should be cleared apprpiately using FI JV’s.