Excise Liability-Theory: 1. If anyone produces a material WHICH IS DECLARED AS MANUFACTURE IN EXCISE LAW then he is liable for Excise duty.

2. When the manufactured materials LEAVE THE FACTORY PREMISES (Stock transfer to depot/Sale from factory) or terminated...-like scrapping/theft- the liable excise duty shall be paid (Thru Cash (PLA)/By Adjustment of Cenvat on inputs (Raw material or Capital Goods)/Services. etc ((Due date= By next month 5th from time of goods leaving the factory ). 3. To keep REGISTER (RG1) with track of Quantity movements (Like as of Part1),Assessable value for excise duty and value of Excise duty (Like as of part2) Excise Liability-SAP: i. In SAP material will be declared as RG1 relevant material. ii. In SAP Movement type will be declared as RG1 relevant material. Only if both the conditions are fulfilled it is relevant for RG1. iii. In SAP Manufacturing Plant will be declared as excise unit. Only if all the conditions are fulfilled it is relevant for RG1. iv. No relevance to storage location except that it helps in filtering the records relevant for RG1. iv. Based on business scenario-appropriate movement type, transaction code will be used- Based on these System determines excise transaction type. Also appropriate excise group, sub transaction type, company code will be entered at the time of data entry. GL is linked to- Excise transaction type account determination logic & Excise Group/sub transaction type/company code entered at the time of Data Entry. Process 1. How/When the material will come to RG1 register? 2. How/When material will go out of RG1 register? 3. How/When the material will come to SAP MM module? 4. How/When the materials go out of SAP MM module? 5. Which transaction code and movement type to be used? 6. How excise transaction type is determined? 7. How the GL is determined?