cin mm induction manualversion 1-1

Induction Manual CIN

Induction Manual CINDated 28/03/2008Induction Manual for Excise related transactions for specific to GMR Agro Sector Version 1.1 Version 1.1

ContentsINTRODUCTION OF CENTRAL EXCISE6CENTRAL EXCISE CONTROL6PHYSICAL CONTROL6SELF-REMOVAL PROCEDURE7COMPOUNDED LEVY SCHEME7Business Process in AGRO9Handling of Excisable and Raw materials:-9Handling of Asset/Capital goods:-9Handling of Return to Vendor:-10Handling of Sub-Contracting Process:-10Handling of Molasses as per the Notification 67/95 (Applicable to Agro sector):-11Summary of process -12Organization Consideration for Excise -13Important point to be considered for Cenvat13Types of Taxes and Duties in GMR Group:-14Domestic Duties14Import Duties14Standard Definitions15Excise Registration:-15Excise Group:-15Series Group:-15Master Data:-15Material Master15Vendor Master16Excise Master16Procurement Scenarios of GMR Agro -17Subcontracting without payment of excise duty21Subcontracting under full payment of duty23Posting Subsequent Adjustment :-24Rejection of Excise Invoices:-24Posting CENVAT on rejected excise invoices:-25Handling of Services:-26Handling of Stock Transfer between Plant to Plant:-26Handling of Molasses as per the Notification 67/95:-27Excise Periodic Activities:-27Condition Types for Excise/VAT and Service Tax29Procedural Steps for Marinating Master Data30Procedural Steps for Domestic Purchase321.1.Access transaction by:321.2.On screen Create Purchase Order, select the document type GDOM Domestic Purchase Order.32Procedural Steps for Domestic Procurement for Cost Center431.3.Prerequisite431.4.Access transaction by:43Procedural Steps for Assets561.5.Prerequisite561.6.Access transaction by:56On screen Create Purchase Order, select the document type GDOM Domestic Purchase Order.57Procedural steps for Excise Imports681.7.Prerequisite681.8.Access transaction by:71On screen Create Purchase Order, select the document type GIMP Import Purchase Order.72Procedural Steps for Sub-contracting Purchase Order Cycle871.9.Prerequisite87Maintain Material V/S Chapter ID T.Code-J1ID871.10.Maintain Bill of Material(BOM) for end Product (S30SUGAR)881.11.Access transaction by:89On screen Create Sub-Contracting Purchase Order, select the document type GDOM Domestic Purchase Order.89Overview of RG1 Register Update1061.1.Access transaction by:1061.2.On screen Update of Registers RG1 and RG 23(Part1) : Initial Screen, enter the below information:107Overview Excise JVs113Access transaction by:1131. Material Write off1131.1 On screen Excise JV- Main Menu, Select Matl Write off1132. Additional excise1162.1 On screen Excise JV- Main Menu, Select Additional excise1163.1 On screen Excise JV- Main Menu, Select Other adj.1204. Cancel Excise Invoice1254.1 On screen Excise JV- Main Menu, Select Cancel Exc.Inv.125Overview Extract Excise Registers1281.1.Access transaction by:1281.2.On screen Excise register extraction: Initial Screen, enter the below information:129Monthly utilization with ADC (test cases on X47/994)134Special Cases141Dealer Purchase Cycle 141Gunny Bags (JMDC)153Manual Excise160Yokogawa Process169Process flow Return Delivery to Vendor177Excise invoice 0000000001 generated. FI document is 4000803.186Stock Transfer Order Plant to Plant with SD Delivery and Billing191Process flow Diagrams (CIN Procurement Process)194Handling of Excise during Procurement Process:-194Handling of Excise during Asset Procurement Process:-195Handling of Import Procurement Process197Annexure IV: - Sub-Contracting Process198Update Excise Register199Excise JVs Process200Handling of Stock Transfer Procurement Process201

INTRODUCTION OF CENTRAL EXCISE

The Central Excise duties are the largest source of revenue for the country. Approximately 30% of the total revenue receipts are collected from Central Excise duties. The levy and collection of Central Excise duties is under the authority of Central Excise Act, 1944. Section 3 (also known as the charging section) provides for the levy and collection of Central Excise duty.The rate and amount of duty as well as the items on which duties are levied are those which are indicated in the Central Excise Tariff Act, 1985 and the schedule therein. The taxable event for Central Excise duty as per Section 3 of CEA (Central Excise Act) 1944 is the manufacture or production of goods.It means that Central Excise duty is leviable as soon as the goods are manufactured or produced. The items on which the excise duty is levied are known as excisable goods.For the purpose of administrative convenience the actual collection of duty is done at the time of removal of goods from the place of manufacture of production. The rate of duty, which is levied, is the rate of duty applicable to such goods or which is in force at the time of actual removal.Additional Excise Duty (AED): - This duty is levied on certain specified goods in terms of various other statutes such as: Additional Duties of Excise (Goods of special importance) ACT, 1957 Additional Duties of Excise (Textiles and Textile Articles) ACT, 1978 CENTRAL EXCISE CONTROLFollowing types of control have been proscribed for the levy and collection of Central Excise duties: - Physical Control Self Removal SchemePHYSICAL CONTROLUnder the physical control system the manufactured goods are removed form the place of manufacture under the supervision of the Central Excise officers on after the assessment and payment of appropriate Central Excise duty. The goods are removed on an invoice indicating the duty paid which is countersigned by the Central Excise officer. The physical control system is applicable on in respect of manufacturers of cigarettes and matches.SELF-REMOVAL PROCEDUREUnder the Self-Removal Procedure (SRP) the goods are removed on payment of duty and against invoices signed by the assess. The actual assessment of the duty paid is done afterwards by the Central Excise officers on monthly returns filed by the assess.In this case much more responsibility has been vested on the assesses to pay the duty correctly and remove the goods only on payment of the duty assessed by him. However, in this system the assesses is required to file a declaration (Rule 173B of CER 1944) giving classification of the goods, tariff heading, rate of duty and the exemption notification availed of if any.He is also required to sell the goods against an invoice at prices, which are in accordance with Section 4 of the Central Excise Act 1944. The Self-Removal Procedure also provides that the assesses should maintain records of production, removals, raw material, MODVAT accounts, accounts of PLA.Monthly returns are scrutinized by the Central Excise Officers so as to ensure proper payment of duty on the goods manufactured and removed.In the record based control system of assessment more trust is given to the assesses. The records based control is applicable to 20 commodities at present vide Notification No 24/86 dated 10.02.86. Reliance is placed on the assessees books of account, invoices, etc., which are generally accepted for purpose of assessment.COMPOUNDED LEVY SCHEMEThe other system of assessment and Levy is known as the Compounded levy scheme. The basic scheme provides for payment of duty on the basis of the estimated production of the commodity by the assesses over a specific period of time, the basis of which may be the number and the types of machines used for manufacture.The advantage of this scheme is that it frees the manufacturer from observing day to day Central Excise formalities and for maintenance of detailed accounts.The self removal scheme also has provisions for bringing duty paid goods back to the factory for purposes of repair, reconditioning etc., within a period of one year and for claiming refund of the duty originally paid (Rule 173H and 173L)The important aspect of Central Excise law is the crucial date for determination of rate of duty. This is because the rates of duty keep changing due to issue of various exemptions and particularly so when the budget is presented to Parliament normally at the end of February.For an excise officer or assesses to calculate and determine the correctness of duty paid the crucial date is most important.The effective date which is applicable to a particular commodity will be the rate in force on the date on which the goods are actually removed from the factory in terms of Rule 9A of the CER-1944. That is, the date on which the goods leave the factory is the crucial date for determining the rate of duty.

Business Process in AGROMM module covers AGRO sector of GMR which consist SUGAR Plant, DISTILLERY and CO-gen.GMR Agro sector is very different from other sectors since Excise Duty is applicable and stored in different registers in order to take the setoff.]

Handling of Excisable and Raw materials:-Purchase Order is released on the supplier with all terms and conditions. On Goods receipt, the Stores person will physically verify the goods for quantity, GRN is prepared and excise documents are sent to respective department. The material is then sent to Quality for approval. If it is accepted, it is treated as unrestricted stock. Accounts department updates the respective excise registers and take the MODVAT Credit. Presently RG23A Register is generated in the system. Following are the examples of Excisable materials Chemical, Gunny Baggs like Sulphur etc Molasses

For non-excisable sectors like Energy, Property, Roads, they will raise the Purchase Order on supplier with all terms and conditions. On Goods receipt, the Stores person will physically verify the goods for quantity, GRN is prepared and the duty subject to excise will be loaded on the inventory value. Material is then sent to Quality for approval. Intimation is given to the user about material receipt.Incase of import Purchase Orders, all terms and conditions like CIF, LC payment etc will be maintained. Accordingly supplier will dispatch the goods and send the hard copy or soft copy of document for customs clearance. Based on the receipt of the documents, Customs clearance will be done and the goods will be sent to plant.Handling of Asset/Capital goods:-For procurement of asset item, a Capital Appropriation Request Form is filled and given for approval. On approval, an asset code is generated which is used for purchase of asset item. On receipt of asset/capital materials GRN is prepared and user will be intimated for inspection. Once the material is accepted, entry is made in Excise Register RG23C instead of RG23A and it is capitalized on the asset.

As per the Excise regulation, GMR is taking 50% of MODVAT Credit in the year of purchase and balance in the Next financial year. Presently the RG23C Register is taken through system.Handling of Return to Vendor:-Any rejections from Quality / Shop floor rejection, the stores person will prepare Non-Returnable Gate Pass (NRGP) and send the materials to Vendor. In case of excisable sector, the Accounts department will reverse the Excise duty captured at the time of Goods receipt. This will update the RG23A/RG23C depends on the type of Material.In case of non-excisable sectors, plant will identify rejected parts or unused parts to be sent back to supplier by means of non-returnable gate pass.

In case of return of imported item, packing list will be prepared and sent to respective department. They will prepare Commercial / Export invoice and send signed copy to plant for movement of goods from plant to respective supplier destination or Airport for further export.

Handling of Sub-Contracting Process:-Purchase Order with different document type will be prepared for this kind of scenarios. When a material is sent to the Vendor for repair/rework etc, it is through Purchase Order/ delivery Challan. And, on completion of job user will certify that work completed and return with delivery Challan. Service orders are raised for any services like Civil work, excavating, construction etc. All specifications of work to be done and Taxes like Service tax etc, will be incorporated in the service orders. Based on the Work progress, the service provider will provide the bill to the user department. After the approval the Stores department will send the bill to accounts department for payment. Then accounts department takes the Credit of Service tax as applicable.

Handling of Molasses as per the Notification 67/95 (Applicable to Agro sector):-As per the notification to produce any Excisable product using this molasses there is no need to pay excise duty. Transfer of Molasses from Sugar unit to the Distillery is done by making an entry in the RG1 register without paying excise duty as per Notification 67/95. Using this Molasses the Distillery will produce two products, one is Excisable and other one is Non-Excisable.Excise duty has to be paid to the Government for the portion of Non-Excisable product produced as per the Notification act. Kindly note the current excise duty for Molasses is Rs. 750/- per Ton and for this we are using manual excise in pricing procedure, this is a custom development done in order to capture the Cenvat for Molasses.

Summary of process -Excise process during procurement Process:-

Receipt of Excisable Material eligible for CENVAT credit. Receipt of Capital Goods eligible for taking CENVAT credit.

Excise Periodic Activities:- Update RG1/RG23A Register with Movement types and classification (3 digit code to identify the excise goods movement). First with Receipt and then with Issues for proper updation of Register. Extraction and Printing of Excise invoices as and when required.

Excise Debit/Credit Entries:- Excise JVs passed as and when required.

Return to Vendor Process:-

Rejection of Material during in process & receipt inspection

Sub-Contracting Process:-

Issue of excisable components for subcontracting.

Organization Consideration for Excise - Company Code Plant Excise Registration Excise Group Series Group

Important point to be considered for Cenvat

Material and Vendor Excise details should be maintained in Material Master Record Material and Chapter ID combination should be maintained J1ID Vendor Excise details should be maintained - J1ID Plant should be maintained as Excise - J1ID Tax Code to be maintained from T. Code FV11 Taxes and Duties will flow from Tax Procedure and Pricing procedure instead of Manual Entry The Excise invoice will be captured for excisable stock materials with respect to the Purchase order All excise accounts will get updated based on the Goods movement Excise Registers will be updated w.r.t to goods movement & values of the excise invoice. An Outgoing Excise Invoice will be created at the time of returning the Material to Vendor. Excise JVs like Debit entries, Credit entries,TR6C, Challan, Cancellation of Excise Invoice will be created in the system and can be passed by carrying transaction Excise Registers will be maintained in the system.

Types of Taxes and Duties in GMR Group:-

Domestic Duties Basic Excise Duty(BED) Special Excise Duty(SED) Education cess on BED Secondary & Higher Education cess on BED (As per Budget 2007-08)

Import Duties Basic Customs Duty (BCD) Counter Vailing duty (CVD) Education Cess on CVD Secondary Education cess on CVD (As per Budget 2007-08) Education cess on all duties Secondary & Higher Education cess on all duties (As per Budget 2007-08) Additional Duty of Customs (ADC) Value Added Tax (VAT) Central Sales Tax (CST) Local Sales Tax ( LST) Service Tax Education cess on Service Tax Secondary & Higher Education cess on Service Tax (As per Budget 2007-08)

Standard DefinitionsElements of Country India Localization:- Excise Registrations Company Code Plant Excise Groups Series Groups Master Data

Excise Registration:-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.Excise Group:-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.Series Group:-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.

Master Data:- Material master Vendor Master Excise Master

Material MasterThe part of the material master record where you record excise information. The excise data is displayed in a separate group box on the Foreign Trade: Import Data and Foreign Trade: Export Data tabs in Material master.Here you can maintain the data like Chapter ID for Material Excise Material type Input /Output determination Material subject sub-contract Material Assessable Value

Vendor MasterThe part of the Vendor master record where you record information about a Vendor relating to sales tax, excise duty, and withholding tax. When you have entered the Vendor that you want to process, you can access the excise data from every screen, by choosing CIN Details.Here you can maintain the data like Excise registration number (and the range, division, and Collectorate in which this is located) Central sales tax (CST) number Local sales tax (LST) registration number Permanent account number (PAN)

Excise MasterExcise master is a record to maintain all the Excise related data for a longer period. In excise master you can maintain the following data; these datas will flow to material master / Vendor master also. Chapter ID Material chapter ID Combination Material Assessable value CENVAT Determination Vendor Excise details Customer Excise details etc,

Procurement Scenarios of GMR Agro -

Excise process for incoming Raw materials (Molasses etc):- Molasses is an intermediate product The steps involved are Creation of Goods receipt document against a valid Purchase Order on receipt of a consignment with supporting excise documents. (When excisable goods are procured externally, each delivery will be accompanied by the Vendors invoice. This document is mandatory as proof of the excise duty paid. The duty paid can be offset against the excise duty that is levied on outputs. ) The GR will show the excise duty element values at line item level The total values for each excise duty element (BED, AED etc) for all line items for a particular GR will be available at the header level The values for excise duty elements will be shown as per the details given in PO. While placement of the Purchase Orders the concerned purchasing officer must ensure that the excisable amount is separated from the basic value of the ordered materials. The Vendors should be discouraged from quoting rates inclusive of all taxes and duties. If materials are received from dealer or trader then the Vendor must submit dealer invoice clearly mentioning the excisable amount. CENVAT can be claimed based on the dealer invoice. The excise duty element values if found different in the Vendor invoice, it can be edited at the time of GR. Capture the excise duty in GR. Immediately on saving the GR, the Part 1 entry will be made in respective registers (RG23A in case of Raw materials and RG 23C in case of Capital goods. In case of RG23C, 50% for the year of receipt and balance 50% will be on hold for availing next year or after commissioning whichever is later).The system: Creates a material document to record the goods receipt. Creates an accounting document to debit the inventory account and credit the GR/IR clearing account.

AccountDebitCredit

Inventory GR/IR Clearing Account1000010000

The part II (both RG23A and RG23C entries will not be created at this point of time (Two step procedures will be used). The excise department will scrutinize the excise documents and if found ok will post the Vendor excise invoice in system. The system automatically debits the excise duty to the excise duty accounts and credits the CENVAT clearing account.

AccountDebitCredit

Basic Excise Duty Special Excise DutyCENVAT Clearing Account1600 100

1700

System then creates a Part II entry in register RG 23A or 23C to record this posting The Excise duty amount can be changed before posting Excise invoice. If the excise person has reduced the amount of excise duty that is to be credited to the CENVAT account, the system adds the difference to the material price. In case of non availment of Cenvat credit, the system adds the excise duty to material price. The system also creates an accounting document. The document contains debit postings to clear the clearing accounts for goods receipts and CENVAT; and a credit posting to create an open item on the Vendor's account:

AccountDebitCredit

CENVAT Clearing AccountGR/IR Clearing AccountAccounts Payable170010000

11700

Excise process for incoming Capital goods (Mills, Rollers, and Motors etc):- At the time of creation of Purchase Order for Assets/Capital goods, a tax code will be entered in the invoice tab at the item level in the Purchase Order screen. The Excise duties and taxes will flow from Pricing Procedure and Tax Procedure based on the condition records maintained in the system. One can enter this value manually in condition tab in Purchase Order (For Dealers). A Goods Receipt will be carried out in the system with respect to the Purchase Order. If the material and the plant are excisable, then the Excise Tab will be activated in the system. The processing mode will be capture excise invoice. The Vendor excise invoice number will be entered in the system. The excise duties will flow from the Purchase Order. Excise Register RG23C Part I will be updated by the system.

The excise invoice will be posted by the user in the system using separate transaction code in SAP. Excise Register RG23C Part II will be updated by the system. The system will post 50% of the CENVAT in the current year. The balance will be posted to the Cenvat on Hold account. The user will post this balance in the next financial year in SAP.

Once the Excise invoice is posted the financial entries in SAP will be :-

Credit CENVAT Clearing Account

Debit BED Account

Debit ECess Account

Debit SEcess Account

Debit CENVAT On-Hold Account

Receipt of materials Excise capturing without a reference document:-

This is the scenario which captures an incoming excise invoice if there is no reference document.A typical scenario is as followed - Commission a construction company to build a new plant. The company purchases all the materials it needs to build the plant, deals with all of the invoices and most of the other paperwork, with the exception of the incoming excise invoices, which the law requires purchaser to deal with. The subcontractor sends all excise invoices accordingly and the same are captured in the system without any reference documents.The following will be the steps involved in the process Input Excise invoice details and Vendor details Give Excise group If the Vendor who sends the excise invoice did not manufacture the goods himself, but obtained them from a different manufacturer, enter the manufacturer in the Ship-from field. Change the excise range, excise division, and ECC number if they are not correct. Check the header data. In case of incomplete or incorrect data, the system displays a list of the errors. If the entered data is correct, the Excise invoice can be posted. On the Item tab, enter the following data: Material Plant Fill out the Material type, Description, and Chapter ID fields using the information from the material master record If material master record is not maintained for the material concerned, no information will be displayed, and it has to be entered manually. Enter the item quantity and change the unit of measure, if necessary Enter the quantity of goods still available for CENVAT credit On the Duty values tab, enter the following data: Excise base amount Excise amounts After capturing the excise invoice, the data captured can be scrutinized for completeness and subsequently, final posting can be done.

Return to Vendor Process:-Once the goods rejected due to Poor quality, partially rejected, damage, shop floor rejection, the quality person will move the material from Quality stock to the Blocked stock and accepted quantity to Un-Restricted use Stock. Stores person has to check the stock in blocked stock before doing return to Vendor Process. Materials will be moved from Quality Stock to Blocked stock in the system. This will be carried out in the inspection lot in quality management module of SAP. A return delivery will be carried out in the system with respect to Goods receipt document. The system will propose the Movement type 122. The quantity to be sent back to the Vendor will be entered in SAP. The Reason for Rejection like Due to Poor quality/Damages will be entered in the reason for rejection field at the item level in SAP. The excise duty will be reversed with reference to the return delivery document. The transaction in SAP would be Excise for Other Movement. The excise invoice will be generated in the system. A printout of the Excise invoice will be taken. Once the Excise invoice posted the financial entries in SAP will be :-Debit CENVAT Clearing AccountCredit BED Account Credit ECess Account Credit SEcess Account

Sub-Contracting Process:-When working with subcontractors, there are two ways of handling the excise invoice on the goods that you provide them with. They being Subcontracting without payment of excise duty Subcontracting under full payment of duty

Subcontracting without payment of excise dutyWhen materials are issued to a subcontractor, it is required to keep track of the materials issued and the due date of return.Under excise law 57AC, when one sends materials to a subcontractor for processing, he need not pay any excise duty, even though the materials have left his premises. However, if the materials have not been returned within a given length of time specified by the law (180 days), any excise credit that was posted when the materials concerned were purchased is to be reversed. In the case of materials manufactured in-house, one will have to post credit entries to the extent of the CENVAT rate of the assessable value of the materials.The process steps involved are Creation of subcontract order for the goods to subcontract. Creation of a transfer posting for the materials those are to be sent to the Vendor. Creation of a subcontracting challan on the basis of the transfer posting material document. The materials will be sent to the subcontractor, along with a printout of the subcontracting challan. (This challan is the consignment document that will be sent to the subcontractor along with the materials that are to be processed.) The subcontractor processes the materials and returns the finished goods. When the goods are delivered back, the warehouse person posts the goods receipt and the challan. The delivery may not necessary cover all the goods from the challan: It may also include goods from a number of different challan. The excise department reconciles the goods receipt against the challan, thereby accounting for the return of the materials that were sent for subcontracting. (The challan here include those that have been captured online at the time of goods receipt and those entered manually.) A list of the outstanding challan will be created. Completion of the challan. If a subcontractor fails to return all the materials within the time allotted, the material will have to be scrapped by specifying it accordingly in the bill of material for the parent material and then assigning the bill of material to the subcontracting Purchase Order. If the scrap generated is not returned by the subcontractor, excise duty relevant to the scrap generated has to be paid. If this scrap is returned after the duty has been paid, an excise journal voucher should be created to reverse the excise duty paid.Determination of Excise Duty applicable in case of subcontracting When the materials are sent to a subcontractor for processing, it is to be determined that how much excise duty is applicable. This of course depends on the base value. The different amounts of excise duty (basic excise duty, special excise duty, and additional excise duty) are printed on the subcontracting challan. When a subcontracting challan is created, the system determines the base excise value of each material and the amount of excise due automatically. When determining the excise duty for materials purchased from third parties, the system uses the excise rate from the latest excise invoice for the material received from the Vendor. Where materials manufactured in-house are concerned, the System determines the taxable value of the material on the basis of the following information, in this order: The latest excise invoice value for the material The material's assessable value (that is, the price determined by an external auditor) The materials net dealer price (the materials list price; the price at which one sells the material to customers)ReconciliationOnce a subcontractor has processed the materials and returned them, the items in the challan should be matched against those that have been returned. This is the reconciliation process.

After the reconciliation process the challan status will be as followed: If all of the materials in a challan are accounted for, the system sets its status to Fully Reconciled. In this case, the challan can be completed. If only some of the materials are accounted for, it sets the status to Assigned. In this case, the remaining quantity of materials must be assigned to another goods receipt later on. Scrap generated is assigned to a challan only if the percentage component scrap is specified in the bill of material for the parent material and this bill of material is assigned to the subcontracting Purchase Order. It will be possible to delete wrongly assigned challanCompletion, Reversal, and Re-credit of subcontracting challan After receipt of the processed material the challan can be closed completely if all the materials send against it are accounted for (The challan status will then be fully reconciled). In case if the allotted number of days (180 days) elapses and the subcontractor fails to return some or any of the materials in the challan (status: Posted or Assigned), the excise duty that was credited to the CENVAT account must be reversed. The scrap has to be returned by the subcontractor. If it is not returned, the excise duty amount for the scrap quantity must be reversed. There are two options available. If it is confirmed that the subcontractor will not return the material, then the challan can be completed. If the subcontractor returns only some of the materials and balance later, Re-crediting the Excise duty on receipt of the balance material is possible.If a subcontractor returns materials after the due date of return, the excise duty credit that was reversed can be Re-credited.

Subcontracting under full payment of duty

This procedure illustrates how to send materials to subcontractors for processing using normal excise invoices.The process steps involved are Creation of a subcontract order for the subcontractors services. Subsequent transfer posting for the materials that to be sent to the subcontractor. Creation of an outgoing excise invoice. Sending the materials to the subcontractor, together with the excise invoice. The subcontractor processes the materials and returns them, together with another excise invoice. Entering goods receipt against the subcontract order and capturing Excise invoice Posting of excise invoice Posting of Subcontractors invoice

Posting Subsequent Adjustment :-

If the vendor informs you after goods receipt that a greater or smaller quantity of the components was actually consumed than planned in the purchase order, you must post a subsequent adjustment to correct the goods issue posting

The value of the goods receipt is recalculated to include the subsequent quantity.

Rejection of Excise Invoices:-

In cases when a Vendor invoice is found unacceptable - if it is illegible or some of the required data is missing - excise invoice can still be posted, but a rejection code is assigned to it.In case an Excise invoice is only captured, rejection code does not have any effect on the excise invoice other than to flag it as rejected.Posting with the rejection code gives two options The System will create a normal CENVAT Document It can also post the Excise duty to the CENVAT on hold account pending clarification of the invoice.

When system posts the excise invoice as normal, it Posts the excise duty to the appropriate accounts Creates the appropriate entries in Part II of register RG 23A or RG 23C Changes the document status (on the Excise invoice tab) to Posted In case of Hold The system creates an accounting document to post the excise to the appropriate accounts, but does not create any entries in Part II of registers RG 23A or RG 23C. On display the Excise invoice, the document status is In process and also there will be a link available to the accounting documentWhen an excise invoice with CENVAT on hold is rejected, the system creates an accounting document to debit the excise duty to the CENVAT on hold account and credit it to the CENVAT clearing account:

AccountDebitCredit

Cenvat On hold AccountCenvat clearing Account1700 1700

Posting CENVAT on rejected excise invoices:-This procedure is used in cases where an excise invoice rejected exists with the CENVAT credit on hold, and later on CENVAT credit is to be taken. The system posts the CENVAT credit as normal & creates the corresponding entries in Part II of the appropriate excise registersWhen one posts the CENVAT, the system creates an accounting document to debit the excise duty to the excise duty accounts and credit it to the CENVAT on hold account:AccountDebitCredit

Basic Excise DutySpecial Excise DutyCenvat on hold Account1000.00700.00

1700.00

Reversal of CENVAT Postings:-This is the context in which the goods receipt and Excise invoices are already posted and later on the goods receipt is to be reversed. As per excise laws, one is no longer entitled to avail the CENVAT credit..The process flow is as followedOn reversal of the goods receipt process, the system Creates a reversal document to cancel the goods receipt Creates additional entries in Part I of the appropriate excise register to reverse the original entries Changes the excise invoice document status to in process.On reversal of the CENVAT posting on the excise invoice, the system Creates an accounting document to reverse the CENVAT postings Creates a corresponding entry in Part II of the appropriate excise registerIn cases where the plant does not allow multiple goods receipts per excise invoice, the excise invoice also must be cancelled. The system changes the excise invoice status to as cancelled. If, however, multiple goods receipts per excise invoice are allowed, it does not have to be cancelled. If one wants, he can leave the excise invoice as it stands. Then, during the next delivery of goods for this excise invoice, enter the excise invoice number when the goods receipt is posted.

Handling of Services:-

A service Purchase Requisition will be raised by the user department. (For more details pls. refer to the Business blue print document on P2P process). A Service Purchase Order will be created w.r.t to the Service Purchase Requisition with all specification of work to be done and Taxes like Service tax, ECess and SEcess on Service tax etc. The Service Taxes will flow from the Tax Procedure A Service Entry Sheet will be created w.r.t to the Purchase Order. The Service Entry Sheet will be accepted in the system. The Service Tax paid will be available for CENVAT.

Handling of Stock Transfer between Plant to Plant:-

A Stock Transfer PO will be created by the receiving plant in the system. The Supplying Plant, will be mentioned in the stock transfer order. Delivery charges, if applicable will be mentioned in the Pricing Procedure in the Purchase Order An outbound delivery will be created by the supplying plant w.r.t to Stock Transfer PO. A Post Goods Issue (PGI) w.r.t Outbound Delivery Document will be carried out by the supplying plant. The Stock will reduce in the Supplying plant. The stock will appear in transit in SAP. A Billing document w.r.t to outbound delivery will be created in the system by the supplying plant. An Excise Invoice w.r.t to Billing document will be generated in the system by the supplying plant. At the receiving plant, the Goods receipt w.r.t to Outbound Delivery will be carried out in the system.The excise invoice sent by the supplying plant will be captured in the system. Excise registers will be updated by the system based on the type of Material (Capital/Raw material)

Handling of Molasses as per the Notification 67/95:-As per the notification 67/95 to Produce any Excisable product using this Product (molasses) no need to pay excise duty. Transfer of Molasses from Sugar Plant to the Distillery Plant by making an entry in the RG1 Register without paying excise duty as per Notification. Using this Molasses the Distillery will produce two products, one is Excisable and other one is Non-Excisable.Excise duty has to be paid to the Government for the portion of Non-Excisable product produced as per the Notification act. Maintain Molasses material code in both Sugar & Distillery plant A Stock Transfer Purchase Order will be created in the system with the sugar plant as the supplying plant & distillery as receiving plant. The molasses will be maintained as relevant to RG1 register in Sugar plant and as a material relevant to RG23A for Distillery Plant in Excise Master. The processes as described under Handling of Stock Transfer between plant to plant will be carried in the system. The RG1 Register will be updated in Sugar Plant Excise Register RG23A Part I & II will updated at the distillery plant.

Excise Periodic Activities:- Update RG1/RG23A Register with Movement types and classification (3 digit code to identify the excise goods movement).First with Receipt and then with Issues for proper updation of Register The Excise Registers like RG23A/C Part I & II, RG1 etc, will be extracted in the system.

The relevant excise registers RG23A/C Part I & II, RG1 etc, can be down loaded into a format & submitted to the statutory authorities.

Excise Debit/Credit Entries:- To take credit Pass Excise JVs with Additional Excise Mode To make any Debit Entries Pass Excise JVs with Other Adjustment

For Example : Adjustment posting for ScrapThis process is used when a material is scrapped and the corresponding excise duty debited to the CENVAT account is to be reversed. The steps involved are Creation of Excise JV for material write off with reference to the material document which was used to scrap the material. Specify the Excise account affected by the adjustment posting. The material document information will be displayed. The posting date and excise duty elements can be edited as per requirement. Excise duty for each line item can be adjusted as per requirement either manually or by assigning the line item to the excise invoice. The excise invoice pertaining to a particular item will be selected from the available list of excise invoices for the material concerned for a Vendor. The system will capture the excise invoice document number in the Ref. doc. field (Reference document). The excise duty to be reversed will be calculated by the system and apportioned to the material based on the quantity in the relevant excise duty fields In case if the duty amounts are to be overwritten manually then the excise invoice no. in the reference document should also be over written The adjustment posting can then be saved after specifying the G/L Account to be posted by choosing Determine G/L accounts The system will display the amount to be posted and the G/L accounts concerned (Accounts displayed will depend on the excise group and CENVAT account specified). Adding another account shall be possible Subsequent adjustments to other postings to match credits and debits will also be possible. It shall also be possible to capture the business area and cost centre Verify the balance display of the CENVAT accounts affected by the G/L postings

Condition Types for Excise/VAT and Service Tax

Sl.NlCondition TypesDescriptionType

Set off Excise Duty Conditions

1JMOPIN: BED setoff %Set off Condition

2JMOQIN: BED setoff QtySet off Condition

3JECPIN:A/P Ecs setoff %Set off Condition

4JSEPIN:A/P SEcs setoff %Set off Condition

5JAOPIN: AED setoff %Set off Condition

6JAOQIN: AED setoff QtySet off Condition

7JMX1IN: A/P BED setoff100%Set off Condition

8JEX1IN:A/P Ecs setof Tot100%Set off Condition

9JHX1IN:A/P Ecs set of Tot100%Set off Condition

10JAX1IN: A/P AED setoff100%Set off Condition

11JSX1IN: A/P SED setoff100%Set off Condition

Inventrising Excise Duty Conditions

1JMIPIN: BED inventory %Inventrising Conditions

2JMIQIN: BED inventory QtInventrising Conditions

3JECIIN:A/P Ecs Inventor%Inventrising Conditions

4JSEIIN:A/P SEcs Invent%Inventrising Conditions

5JAIPIN AED inventory %Inventrising Conditions

6JSIPIN SED inventory %Inventrising Conditions

7JMX2IN: A/P BED inventor100%Inventrising Conditions

8JEX2IN:A/P Ecs Invent To100%Inventrising Conditions

9JHX2IN:A/P SEcs Inv Tot100%Inventrising Conditions

10JAX2IN: A/P AED inventor100%Inventrising Conditions

11JSX2IN: A/P SED inventor100%Inventrising Conditions

VAT/CST Conditions

1JIP1IN:A/P CST

2JIP2IN:A/P LST

3JIP5IN:A/P VAT RM Deduct

4JIP6IN:A/P VAT RM Non-de

5JIP7IN:A/P VAT CG Deduct

6JIP8IN:A/P VAT CG Non-de

Service Tax Conditions

1JSRTA/P Service Tax

2JEC3A/P ECS for ST

3JES3A/P SECS for ST

Procedural Steps for Marinating Master Data

Procedural StepsPrerequisiteVia MenusJ1ILN >Indirect Taxes > Master Data > J1ID - Excise Rate Maintenance

Via Transaction CodeME21N

a. Maintain Material V/S Chapter ID

b. Maintain CENVAT Determination

c) Maintain Vendor Excise Details

d) Maintain Excise details for Plant

e) Maintain Excise Indicator for Plant and Vendor

Procedural Steps for Domestic PurchaseProcedural StepsPrerequisiteVia MenusJ1ILN >Indirect Taxes > Master Data > J1ID - Excise Rate Maintenance


1.1. Access transaction by:Via MenusLogistics > Materials Management > Purchasing > Purchase Order > Create > Vendor/Supplying Plant Known


1.2. On screen Create Purchase Order, select the document type GDOM Domestic Purchase Order.

Enter the Tax code in Invoice Tab to get the Excise Details as mentioned below

Click on taxes Button to See the Excise and Tax details

Then Save the Purchase Document Domestic PO No 4500000209 Created1.4 Release of Purchase OrderVia MenusLogistics > Materials Management > Purchasing > Purchase Order > Create > ReleaseME29N - Individual Release


1.5 Goods Receipt w.r.t to Purchase Order

Via MenusLogistics > Materials Management > Inventory ManagementGoods MovementMIGO - Goods Movement (MIGO)

Via Transaction CodeMIGO

A. Then Click on Item OK then only Excise Invoice Tab will open in the Header Screen and Select the Mode of Transaction as Only Capture Excise InvoiceB. Then Enter Excise Invoice Number (Vendor Excise Invoice) and DateC. Check all the Excise Details in Header as well as Item for each line itemD. Check the Excise Group

Then click on Check button to view the List of Messages if any and then Post the Document

Material Document 5000000313 Posted

1.6 Display the Material Document and Accounting Document (Click on FI Document in the Document Info Tab)

1.7 Post Excise Invoice: J1ILNIndirect TaxesProcurementExcise InvoiceIncoming Excise InvoiceCentral ProcessingJ1IEX - Capture / Change / Cancel / Display / Posta. Processing Mode: Postb. Reference Document: Vendor Excise Invoicec. Check all the Excise Detailsd. Click on Simulate CENVAT to view the Excise G/L Accounts before Postinge. Post the Document

Simulation Mode:

After Posting

System Message: Excise Invoice 0010000088 has been successfully maintained

1.8 Display Excise Invoice DocumentNote: RG23A Part II has been updated

Accounting View

1.9 Vendor Invoice VerificationLogisticsMaterials ManagementLogistics Invoice VerificationDocument EntryMIRO - Enter Invoice

Simulation Mode:

Then Post the Document

System message: Document No 5105600287 Created

Accounting Document

Procedural Steps for Domestic Procurement for Cost Center1.3. PrerequisiteVia MenusJ1ILN >Indirect Taxes > Master Data > J1ID - Excise Rate Maintenance


c. Maintain Plant V/S Chapter ID without Material Master

d. Maintain CENVAT Determination





Then Save the Purchase Document Domestic PO No 4500000226 Created1.4 Release of Purchase OrderVia MenusLogistics > Materials Management > Purchasing > Purchase Order > Create > ReleaseME29N - Individual Release


1.5 Goods Receipt w.r.t to Purchase OrderVia MenusLogistics > Materials Management > Inventory ManagementGoods MovementMIGO - Goods Movement (MIGO)


E. Then Click on Item OK then only Excise Invoice Tab will open in the Header Screen and Select the Mode of Transaction as Only Capture Excise InvoiceF. Then Enter Excise Invoice Number (Vendor Excise Invoice) and DateG. Check all the Excise Details in Header as well as Item for each line itemH. Check the Excise Group





Simulation Mode:

After Posting



Accounting View of Excise Invoice


Simulation Mode:



Accounting Document

Procedural Steps for Assets

Procedural Steps1.5. Prerequisitee. Maintain Plant V/S Chapter ID without Material Master T.Code-J1ID

f. Maintain CENVAT Determination T.Code-J1ID



On screen Create Purchase Order, select the document type GDOM Domestic Purchase Order.



Then Save the Purchase Document Asset PO No 4500000228 Created

1.4 Release of Purchase OrderVia MenusLogistics > Materials Management > Purchasing > Purchase Order > Create > ReleaseME29N - Individual Release




I. Then Click on Item OK then only Excise Invoice Tab will open in the Header Screen and Select the Mode of Transaction as Only Capture Excise InvoiceJ. Then Enter Excise Invoice Number (Vendor Excise Invoice) and DateK. Check all the Excise Details in Header as well as Item for each line itemL. Check the Excise Group




Note: No Accounting Document has been created because of Asset GR Non Valuated in Account Assignment Category (A)


Simulation Mode: For Asset 50% of the Duty values can take Credit this Year and Balance will go to CANVAT On-hold account to take Credit in the Next Financial Year as shown below.

After Posting: After Posting the Excise Invoice RG23C Part II will update automatically and Accounting Document will get update as shown below.


1.8 Display Excise Invoice DocumentNote: RG23C Part II has been updated



Simulation Mode:



Accounting Document

Procedural steps for Excise Imports

Procedural Steps1.7. Prerequisiteg. Create Custom Vendor with Currency INR

h. Create Foreign Vendor Master With Currency non INR and Import Schema Group Vendor IS in the Purchasing Data

i. Maintain Plant V/S Chapter ID without Material Master T.Code-J1ID

j. Maintain CENVAT Determination T.Code-J1ID

k. Maintain Vendor Excise Details T.Code-J1ID



On screen Create Purchase Order, select the document type GIMP Import Purchase Order.

Enter the Tax code as V0 in Invoice Tab

Goto Condition Tab in the Purchase Order to Enter the Pricing Conditions and Customs conditions as shown belowJBCDBasic Custom Duty %12.0 to 15%JSCDSpecial Custom Duty JCV1IN CVD16.000 %JECVECess on CVD2.000 %J1CVSHECess on CVD1.000 %JECDECess on all Duties%2.000%JEC1SECess on all Duty%1.000%JADCAdd Duty Cust(ADC)%4.000%

Note:1. Assign the Custom Vendor (1000028) to Each Custom Duty Condition by Select each condition and then Click on Condition Details.

Then Save the Purchase Document Asset PO No 4600000034 Created1.4 Release of Purchase OrderVia MenusLogistics > Materials Management > Purchasing > Purchase Order > Create > ReleaseME29N - Individual Release


1.5 Invoice Verification for Custom Vendor Via MenusLogistics > Materials Management > Logistics Invoice Verification Document EntryMIRO - Enter Invoice


M. Select the Processing Mode as Planned Delivery CostN. Enter the Currency as INR for Custom Vendor to Pay the Duty in Local CurrencyO. Enter the Planned Delivery Manually by copying the Values from Line itemP. Then enter the Balance Value in the Amount Field and then Click on SIMULATE and POST

Simulate Mode:

System Mesg: Document No 5105600294 Created

Accounting Document View:

1.5 Goods Receipt w.r.t to Purchase Order

Via MenusLogistics > Materials Management > Inventory ManagementGoods MovementMIGO - Goods Movement (MIGO)


a. Select: Goods Receipt- Purchase Orderb. Enter the Purchase Order and Press Enterc. System by default shows the Commercial Invoice Number as shown below to carry the Bill of Entry Details

A. Then Click on Item OK then only Excise Invoice Tab will open in the Header Screen and Select the Mode of Transaction as Only Capture Excise InvoiceB. Then Enter Excise Invoice Number (Vendor Excise Invoice) and DateC. Check all the Excise Details in Header as well as Item for each line itemD. Check the Excise Group




GR - Accounting View

1.7 Post Excise Invoice: J1ILNIndirect TaxesProcurementExcise InvoiceIncoming Excise InvoiceCentral ProcessingJ1IEX - Capture / Change / Cancel / Display / Posta. Processing Mode: Postb. Reference Document: Vendor Excise Invoicec. Check all the Excise Details like BED (CVD), AED (ADC), Ecs on CVD and SEcs on CVDd. Click on Simulate CENVAT to view the Excise G/L Accounts before Postinge. Post the Document

Simulation Mode:

After Posting of Excise Invoice




1.9 Vendor Invoice Verification for Foreign VendorLogisticsMaterials ManagementLogistics Invoice VerificationDocument EntryMIRO - Enter Invoice

Simulation Mode:



Accounting Document

Procedural Steps for Sub-contracting Purchase Order Cycle

Business Process Procedure Overview

A Sub-contracting Purchase Order is a Legal Document. This scenario will come to picture while sending any components for Repair or any modification work.

Input - Required FieldsField Value / Comments

VendorVendor number

Purchasing OrganizationPurchasing Organization code

Purchasing GroupPurchasing Group code

Company CodeCompany code

PR numberReference Purchasing Requisition number

Net pricePrice of service activity

Output - ResultsComments

Created Sub-Con PO, Transfer Posting, Sub-Con Challan, Goods Receipt, Challan Reconcile and Vendor Invoice Verification

Procedural Steps1.9. PrerequisiteMaintain Material V/S Chapter ID T.Code-J1ID

1.10. Maintain Bill of Material(BOM) for end Product (S30SUGAR)Via MenusLogistics > Production > Master Data > Bills of Material > Material BOM > CS01 - Create

Via Transaction CodeCS01



On screen Create Sub-Contracting Purchase Order, select the document type GDOM Domestic Purchase Order.a. With Item Category L


Click on Components in the Item Material Tab to View the List of BOM Components as shown below

Then Save the Purchase Document Sub-Contracting PO No 4500000251 Created

1.4 Release of Sub-Con Purchase OrderVia MenusLogistics > Materials Management > Purchasing > Purchase Order > Create > ReleaseME29N - Individual Release


Then Release the Document and Save

1.5 Transfer Posting w.r.t to Sub-Con Purchase Order

Via MenusLogistics > Materials Management > Inventory ManagementGoods MovementMB1B - Transfer Posting

Via Transaction CodeMB1B

Step :-a. Movement type:541b. Refer Purchase Order to adopt the Details

Then Click on Purchase Order to Enter the PO Number

Then Click on Adopt + Details

Then Post the DocumentSystem Message: Document No: 4900000311 PostedNote: No Accounting Document will Generate for Transfer Posting

1.6 Create Sub-Contracting Challan w.r.t to Transfer Posting DocumentVia MenusJ1ILN > Indirect Taxes > Procurement Subcontracting Subcontracting ChallanJ1IF01 - Create

Via Transaction CodeJ1IF01

Step:-a. Enter Transfer Posting Document Numberb. Enter Excise Groupc. Enter Series Group

Then Save the Sub-Contracting Challan System Message: Sub-Contracting Challan 0000000017 to 0000000019 for Year 2007 and Series Group SS1 Created1.8 Print Sub-Contracting ChallanVia MenusJ1ILN > Indirect Taxes > Procurement Subcontracting Subcontracting ChallanJ1IF01 - Create


While Creating the Sub-Con Challan Click on Print Immediately Check box and Save the Document System will print the Document Automatically



Click on Item OK to Open the Excise Invoice Tab and Select the Refer Sub-Contracting Challan and Click on More Data(Pencil Indicator) to Enter the Challan details

Note:- Movement type would be 101 and 543 O




2.1 Quantity Reconciliation of Sub-Con ChallanVia MenusJ1ILN > Indirect Taxes > Procurement Subcontracting Subcontracting ChallanJ1IFQ- Quantity Reconcilation

Via Transaction CodeJ1IFQ

Then Click on Reconcile Button and Press Enter the Following Screen will appear

1. Click on Allocated based on FIFO (Calculator Button) it will fills the Assigned Quantity as shown below

Then Save the Document

2.2 Challan Complete

Via MenusJ1ILN > Indirect Taxes > Procurement Subcontracting Subcontracting ChallanJ1IF13 - Complete/ Reverse/ Recredit



Simulation Mode:



Accounting Document

Overview of RG1 Register Update

RG1 register maintained at Manufacturing Plants for excisable finished goods. The register shows goods movements from the factory to a store and stores to customer, specifically for excisable finished goods. The R/3 System generates all the necessary entries in the register. This report only creates register entries for goods movements that have not already been entered. It does not create duplicate entries.

Business Process Description Overview

This process describes the method to update RG1 register

Input - Required Fields Field Value/Comments

Company CodeCompany code

PlantPlant

Excise GroupExcise Group

Movement TypeRelevant movement types for RG1 updation

Storage locationStorage location

ClassificationRelevant Classification for receipts and issues


Updation of RG1 Register

Tips and Tricks - Depending on the Classification chosen different movement types are to be entered. Always update receipts first then issues.Procedural Steps1.1.Access transaction by:Via MenusCIN Menu -> Indirect taxes -> Registers -> Excise Tax -> Update Rg23 A/C issues and RG1

Via Transaction CodeJ1I5

1.2.On screen Update of Registers RG1 and RG 23(Part1) : Initial Screen, enter the below information:

Field NameDescriptionR/O/CUser Action and ValuesComments

Company CodeCompany CodeR

PlantPlant for which RG1 Register is being maintainedR

Excise GroupExcise Group for which RG1 register is being maintainedR

Material Document NumberMaterial document number OBased on the updation criteria enter values

Document YearMaterial document yearOMaterial document year

Posting DateDate of Material document Posted REnter the Material Document Posting Date

Movement TypeMovement Type used for posting the materialsO

Storage LocationStorage location used for posting the material movementsO

MaterialMaterial number to update the RG1 RegisterO

Document DateDocument date of the material documentO

BatchBatch number of the materialsO

Stock TypeStock Type declared O

RuleExcise Classification RuleO

ClassificationPre-defined ClassificationsRIIMFor updation of goods receipts from Manufacturing plant use RMA

For updation of Goods issue, i.e. Removal from factory on payment of duty for home use IDHReceiptsRMA- Receipt from manufactureROP-Receipt from outside under any other provisionIssuesIDH-Removal from factory on payment of duty for Home useIDE-Removal on payment of duty for export under no bondIWE-Removal without payment of duty for export under bondIWT-Removal without payment of duty for transfersIWO-Removal without payment of duty for other purpose

RG23/ RG1 RG23 / RG1 updation dateRSelect the appropriate radio button to update the RG1 Register. Please select the document entry date radio buttonDate to be considered by the system for updation of RG1 RegisterDocument Entry dateDocument posting dateSystem date

RegistersRegister to updateRSelect the RG23A radio button to update the RG1 Register,By using this Transaction you can update the following RegistersRG23A Part1RG23C Pat1RG1

Press enter and ignore any messages.

The following Classification codes need to be used while updating the Excise Registers:

Register TypeGoods issuesGoods receipts

RG 23AIIMROP

IPD

IWD

RG23CIIMROP

IPD

IWD

RG1IDHRMA

IDEROP

IWE

IWT

IWO

System will display the Update of Registers RG1 and RG23 (Part1) screen:Displays all the line items to meet the selection criteria to update the RG1 Register

Select the line items which needs to be updated to RG1 Register by selecting the check box at the beginning of the each line item

Simulate the selection by using the Simulate function or use Shift+F10 to simulate the selection

System will display the selection Green or Red Traffic lights. The line items which can be updated will be displayed with Green Traffic Lights and the line items which can not be updated will be displayed with Red Traffic Lights. After selecting the right documents select the line item and use the Create button to update the RG1 Register or use CTRL+Shit+F11 to make register entry.

Result :

Overview Excise JVs

Entering excise JVs in the system to make cenvat adjustments.


This process describes the method to Enter excise JVs in the system to make cenvat adjustments.

Tips and Tricks

Depending on the different Scenarios need to enter different JVs in the system

Procedural StepsAccess transaction by:Via MenusCIN Menu -> Indirect taxes -> Registers -> Excise JV-> Create

Via Transaction CodeJ1IH

1. Material Write off1.1 On screen Excise JV- Main Menu, Select Matl Write off


Document NumberEnter material document numberREnter material document numberEnter the number of the document that is used to scrap the material.Movement tye 551

Document YearEnter document yearREnter document year

Company codeEnter company codeREnter company code

PlantEnter plantREnter Plant

Excise GroupEnter Excise GroupREnter Excise Group

Modvat account selectionSelect the modvat accountRSelect the modvat account

Specify which account is affected by the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment.

Press enter Button

Select Excise invoice to refer or enter quantity and duty values

Click On Determine G/L accounts

Click On Returns to Detail screen

Save

Result

2. Additional excise2.1 On screen Excise JV- Main Menu, Select Additional excise


Document NumberEnter material document numberREnter material document number






Specify which account is affected by the adjustment posting is for.

Press enter Button

Click on Details buttonEnter information as in the tableField NameDescriptionR/O/CUser Action and ValuesComments

MaterialEnter material codeREnter material code

QuantityEnter QuantityREnter Quantity

BEDEnter BED amountREnter BED amount

EcessEnter Ecess amountREnter Ecess amount

SECessEnter SECess amountREnter SECess amount



Save

Result

3. Other adjustment3.1 On screen Excise JV- Main Menu, Select Other adj.


Document NumberEnter document numberREnter l document numberEnter the number of theExternal document that is refered to.






Specify which account is affected by the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment.

Press enter Button

Click on Details button

Enter information as in the tableField NameDescriptionR/O/CUser Action and ValuesComments

MaterialEnter material codeREnter material code

QuantityEnter QuantityREnter Quantity

BEDEnter BED amountREnter BED amount

EcessEnter Ecess amountREnter Ecess amount

SECessEnter SECess amountREnter SECess amount



Save

Result

4. Cancel Excise Invoice4.1 On screen Excise JV- Main Menu, Select Cancel Exc.Inv.


Document NumberEnter document numberREnter document numberEnteroutgoing excise invoice to be cancelled


Series GroupEnter Series GroupREnter Series group to which excise invoice refers

Press enter Button

Confirm the message



Save

Result

Overview Extract Excise Registers

This step need to be performed in order to create the RG1/RG23 (A/C/D),PLA details into the respective tables ..


This process describes the method to Extract the registers.

Input - Required Fields Field Value/Comments

Excise Group

Start Date

End Date

Register


Creation of condition record

You have to complete the update of RG1 Register before performing this step for RG1 register.

Procedural Steps1.1.Access transaction by:Via MenusCountry India User Menu Indirect Taxes Registers Excise Tax Extract

Via Transaction CodeJ2I5

1.2.On screen Excise register extraction: Initial Screen, enter the below information:


Excise GroupExcise group for which Register being generatedREnter excise Group

State DateStarting date of ExtractionRStarting date of data to be extracted for registers

End DateEnding date of ExtractionREnding date of data to be extracted for registers

Selection RegistersMass extraction of data to all registers RSelect the radio button Select Any Register optionUser can generate all the registers together or individual register wise

Select individual RegistersSelection of individual registerRSelect individual register

Display Last Extracted datesDisplays the previously upto what date the register has been extracted for informationO

Click on execute icon or Press F8 or Program Execute

If the Register is being generated for the Period First Time, system will execute the report and display the pop-screen with Register name and Green Tick mark, if it is successfully extracted, otherwise it will show the Red Cross.

Result : Register (Eg:RG1) data has been extracted

Print Register - This process is used to print the RG1 Register or to display on the screen

Access the transaction choosing one of the following navigation options:SAP R/3 menuCountry India User Menu Indirect Taxes Registers Excise Tax Print Utility program

Transaction codeJ2I6

Tips and Tricks

The data must be extracted to the respective Register for the period to which Register need to be printed

On the Print Excise Registers screen, select the Radio button to print the respective Register.

Click on Execute icon or Press F8 or Program Execute

On the Print Register screen, make the following entries:

Field nameDescriptionR/O/CUser action and valuesComment

Excise GroupExcise group for which RG1 Register is being generatedREnter the Excise GroupEnter the Excise Group

Start DateStarting date of the period for which currently RG1Register is being generatedREnter Starting DateStarting Date

End DateEnding date of the period for which currently RG1Register is being generatedREnter Ending DateEnding Date

Form SelectionSelect Script form or excel formRSelect excel form to download to desktop

Click on Execute icon or Press F8 or Program Execute

Specify the File Path

Open the stored excel file in the templates given for each register and run macros.

Monthly utilization with ADC (test cases on X47/994)

Transaction Code used J2IUN Note : Monthly utilization is to be done company code wise in SAP.

10762985431

1Enter the plants relevant for the company code in the excise group

2Enter IP if you require the system to display the ADC (additional duty of customs) balance during monthly payment.

If this is not entered the system will display the balances of RG23ABED, RG23CBED and PLA.

If this is entered the system will display the balances of RG23ABED, RG23CBED , PLA, RG23AADC, RG23CADC.

3Enter the period for which the monthly utilization is being done

4Enter any specific invoice number for which you desire to make the monthly payment

5Enter the business area for the excise group

Description Business area

6 If this pushbutton is clicked after entering all the details, the last date of monthly utilization will be displayed.

7If this pushbutton is clicked after entering all the details, the system will list the invoices that are pending for monthly utilization for the period entered above.

8There are two radio buttons :

Payment of Monthly utilization using the Service tax balances.

Payment of Service tax using the Cenvat balances

When the first option is desired, then the user has to enter the service tax GL account number and the Service tax Edu cess GL account number in the block 9 .

When the second option is desired, then the user has to enter the service tax GL account number and the Service tax Edu cess GL account number in the block 10 .

9The GL account for service tax and the GL acct number for the Edu cess on service tax is to be entered if it is desired to utilize the service tax balances for the monthly utilization.

Service tax input 1561501121Ecess on service tax input - 1561501191

10The GL account for service tax payable and the GL acct number for the Edu cess on service tax payable is to be entered if it is desired to utilize the cenvat balances for the service tax payment.

Service tax payable 1861501131Ecess on service tax payable - 1861501181

Traffic light Duty paymentThese are the ADC balances available for utilisationUser has to enter the duty values against the various accounts ( RG23A / RG23C / PLA ) The traffic light turns green when the total payable is entered correctly by the user.

Ecess payment

After the values are entered the document is to be saved . The register entries are created in the background.

Accounting document

Special Cases

i. Dealer Purchase Cycle ii. Jmdc exciseiii. Manual exciseiv. Yakogowa

Dealer Purchase Cycle

1) When Creating Purchase Order if you are not aware what (percent of ED ) taxes will be applicable, then you can use this process to capture the excise duty, and can utilize this values for getting your MODVAT claims.

Dealer Invoice: - Step to be followed

1. ME21N PO creation [select Tax code which is not includes ED components2. J1IEX Capture excise invoice [Tick MRP indicatore in Miscellaneous Tab]3. MIGO- Goods receipt and Refer the Captured excise invoice4. J1IEX-Post the captured excise invoice5. MIRO- Invoice verification process [Change the amount +select required Taxcode with ED components] post the document

Detail Description of the steps:-

T-code: ME21N select required material / vendor /org elements (Pur org,company code/purgroup] Then Go to Item detail Item details and select Condition tab

Select Tax codes which are having only VAT/CST components Dont Select Any Tax codes which arehaving Excise components[ED+Ecess+SHEcess].In the Example we have 4% VAT which ison the total amount which includes Excise duties.

Then save your Purchase order and Release your Purchase Order.

Note: We need to capture Excise manually without fail before doing -MIGO[Goods Reciept]T-code: J1IEX

Give Excise(Vendor) Number &Date.We can see because there is no ED components in PO so we getBED/ECS/Scess as Blank and Exc base it will take PO value which isinclusive of ED/ECS/SHEces.

Go to miscellaneous tab and tick the MRP indicator

Manually we need to change the Exc base value after deducting BED+ECS+SHecess value fromPO Value (Base value which includes Ed components]

After entering these values manually we can see in header all the duty values, check and save the document.

Then we need to do the GR for this PO, MIGO - We need to select only refer Excise Invoice

And select the Excise invoice number and Excise inv date which is capturedAll the value will flow from excise invoice captured as shown above.

Check and Post the document then go to Display mode and see the AccountingDocument which shows only Material value excluding all Excise duties.

Then Go to J1IEX and post the referred Excise invoice, Simulate it and post it

Go to T. Code: MIROSelect the required Purchase order and enter we get all the values from Purchaseorder.

Note: Here we need to change Manually Amount, Tax code to get the required result.

Change the TAXCODE = ED14%+ECS2%+SEcs1%+VAT 4% =M1 to get the required, results as shown below.

Simulate the result then we get the details as shown below

Gunny Bags (JMDC)

Tax Code J1, There will be certain taxes where you will not be considering ED for MODVAT but you need to capture the Cess and H.Cess only, for availing MODVAT, in such cases you will be using this tax code J1.Currently this we are using for Gunny Bags.JECP - IN:A/P Ecs setoff % JSEP - IN:A/P SEcs setoff % JVRD - A/P VAT RM Deductible The above three condition types will not be inventorised.

Please refer to the below invoice which is self explanatory.

Procedure is follows

1) Create PO with ME21N2) Use the Tax Code J1 in Invoice tab, except JCSS & JJX3 condition type rest will be inventorised. 3) Save and Release the PO4) Goods receipt Capture the Excise Invoice5) Post the Excise Invoice 6) Invoice verification

Create PO

Give the Tax Code as J1 and click on taxes to see the tax calculation

Save and release the PO

Then do the GR against the Purchase Order No and check the FI entries.

Post the Invoice with T.Code with MIRO and check the accounting entry

Manual Excise

This is a custom development for GMR Agro sector since it was required to capture amount for MODVAT basically for Molasses

Generally the ED for Molasses is Rs. 750/- per ton, standard SAP can not perform this transaction so this is a custom development to capture ED for getting the setoff.

Process flow is as follows- Procedure for Manual excise .1.PO Creation .(me21n)

Enter ed value manually.

Observe the tax calculations.Basic prize 100/-Manual ed - 30/-Ecs 2% on 30 0.60Secess 1% 30 0.30Total value for vat - 130.90/-Vat 4 % - 5.24

Taxes values -36.14/-

Goods Receipt - MIGO transaction

Observe the tax values.J1IEX TRANSACTION (modvat credit)

Accounting document.

Invoice Verification - MIRO transaction

Observe the values. And Save the document.

Yokogawa ProcessThere was a certain case where you can take a where you can get a set off for 2% Cess on CVD, to Map this process there was a custom development, given below the example will illustrate the necessity to go for this custom development .

Example only

Basic Price100

CVD 16%16

Additional Duty 4%4

Cess 2% on CVD0.32

Addl Cess 1% on CVD0.16

Total120.48

CST 3% against form-c3.6144

Grand Total of P.O. value124.0944

The process for this special case is as follows - Scenario of Local vendor passing CVD and ADC Charges.1.Create po me21n.

Enter cvd and additional duty charges price in manuallyJexc and zadc condition as showne.use tax code J2

2.TAX Calculation.

Observe the tax amounts and cst calculation.Bed amount is equals to cvd 2730/-Additiona l duty charges 798/-3.Migo transaction.

Observe the tax values.AED field is additional charges.

4.J1IEX TRANSACTION TO AVAIL CREDIT.

IMPORTANT MANUALLY ENTER IP AS SHWONE.Whenever local vendor passing CVD AND ADC DUTIES we need maintain IP as Sub transaction type.

Simulate cenvat posting

Post the document.

5.Miro transaction

SIMULATE OBSERVE THE CENVAT CLEARING ACCOUNT.

Process flow Return Delivery to Vendor If you want to return delivered goods to the vendor for some reason (for example, due to poor quality or because they are damaged), you can use this function to return the goods, even if you have already posted the goods receipt. Posting a Return Delivery with Reference to the Material DocumentChoose the Enjoy transaction MIGO for posting goods movements.Enter the number of the material document and the material document year. If you do not know the number of the material document, you can also enter the delivery note number in the Delivery note input field. The Steps required doing the Return Delivery for Excises able materials where Part II register is updated 1) Create the PO using excise material and excise Vendor and use appropriate Tax Code2) Goods receipt and Capture Excise Invoice3) Post Excise Invoice 4) Use MIGO, and movement type 1225) Use T.Code J1IS6) Use T.Code J1IVFollowing are the screen shoots Use T.Code ME21N

Save the PO and Release the PO with ME29N (Ref PO No 4500001612 in Client 400)

Do the goods receipt with T.Code MIGO, Capture and Post the Excise Invoice

Save the document and note down the material document, simulate it

Now go to T.Code MIGO and use Movement type 122 and do return deliveries process for the material document Give Reason for Movement in Where Tab and Good Issue indicator as IPD in Excise Tab and Post the document.

Go to T.Code J1IS, enter Material Document number.

Press Enter

And Save the document, Document number 0010000000 generated; Modvat database updated

Go to T.Code J1IV, document number 10000000, the one which you will get it from J1IS

Press Enter and Save the document

Excise invoice 0000000001 generated. FI document is 4000803.

Now take a print out by menu

Give a Excise Invoice number and generate it. E.g. Excise invoice 0000000001

Stock Transfer Order Plant to Plant with SD Delivery and Billing

Stock transfer in Agro Sector basically happens for Molasses.In general process flow is Process Flow 1. Creating a stock transport order in the receiving plant Plant 4003 would like to order materials from Plant 4001. Plant 4003 enters a stock transfer order. The stock transfer is used to plan the movement.2. Posting a delivery in the issuing plant Plant 4001 supplies the goods to Plant 4003. Plant 4001 enters a replenishment delivery in Shipping. The goods are then posted to the stock in transit of the receiving plant.3. Posting a goods receipt in the receiving plantOnce the goods arrive in the receiving plant, the plant posts a goods receipt for the delivery. The stock in transit is therefore reduced and the unrestricted-use stock increased.StepsProcessTCODEShould be Maintained

1Create Material MasterMM01Create Material Master in one Plant and Extended to other Plant and Maintain Sales View in that

2Create Vendor MasterXK01Create Vendor Master and attach the Plant in Add Purchasing Data in the Purchasing Data tab

3Get or Create Purchase RequisitionME51NPurchase Requisition Document Type: PSTO Item Category:U Purchasing Org: Purchasing Grp: Receiving Plant: Material Code : Quantity Requested: Supplying Plant: Delivery Date:

4Display Purchase RequisitionME53NPurchase Requisition Number:

5Release Purchase RequisitionME54NRelease Indicator:

6Create Purchase Order w.r.t to PR from Receiving PlantME21NDocument Type: GSTO Item Category and other details are flow from PR to PO Vendor: Purchasing Org: Purchasing Grp: Company code: Supplying Plant: Purchase Requisition: Tax Code: Enter Conditions:

7Display Purchase OrderME23NStock Transport Purchase Order Number

8Release Purchase OrderME29NStock Transport Purchase Order Number: Release code:

9Print Purchase OrderME9FVendor: Purchasing Org.: Purchasing Grp.: Application: EF Purchase Order: Message Tyep : NEU

10Create Delivery w.r.t to STO Purchase OrderVL10BShipping Point: Select Respective Shipping Point Purchase Order No: In the Purchase Order Tab Execute or Press F8 Click on Background Processing to Generate Delivery Document

11Enter Picking Quantity in Delivery DocumentVL02NOutbound Delivery No: Storage Location: {In Picking Tab} Picking Qty Click on Post Goods Issue button

12Create Billing Document wr.t Delivery Document - SD ActivityVF01Outbound Delivery No: Billing type: JEX Check the Excise Details & other Conditions, the Excise Value should be Zero as per Notification

13Create Excise Invoice w.r.t Billing DocumentJ1IINBilling Document No: Posting Date: Check Excise Group & Series Group the Excise Value should be Zero as per Notification

Report on Stock in TransitMB5TReceiving Plant/Issue Plant: Material: STO/Cross Company PO

14Entering Goods Receipt for STO Purchase Order in the Receiving PlantMIGOPurchase Order Number: Storage Location: Item OK: Qty Excise Invoice No: Enter Excise Invoice Created in the Step 13 Excise Invoice Date: Processing Mode: Only Capture Excise Invoice

15Display Material DocumentsMB03Material Document Number: Material Document Year:

cin mm induction manualversion 1-1

Documents

excise group

excise imports681

excise invoice1254

screen excise jv main

initial screen

rejection of excise

rejected excise invoices

excise related transactions