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1
COUNTRY INDIA VERSION (CIN) MATERIAL MANAGEMENT
Contents
1.1 EXCISE REGISTRATION
..................................................................................................... 3
1.2 EXCISE GROUP
.................................................................................................................... 3
1.3 SERIES GROUP
.................................................................................................................... 3
2 ESSENTIAL MASTER DATA FOR EXCISE
.............................................................................. 4
2.1 Chapter Id
........................................................................................................................... 4
2.2 Material Chapter ID combination
...................................................................................... 4
2.3 Material Assessable value
.................................................................................................. 5
2.4 CENVAT Determination
....................................................................................................... 5
2.5 Vendor Excise details
.......................................................................................................... 5
3 TAX CONDITION RECORDS
...................................................................................................... 6
3.1 Cenvatable Excise Duties Conditions (%ge)
.................................................................. 6
3.2 Cenvatable Excise Duties Conditions (Qty)
.................................................................... 6
3.3 Non- Cenvatable Excise Duties Conditions(%ge)
.......................................................... 7
3.4 Non- Cenvatable Excise Duties Conditions(Qty)
........................................................... 7
3.5 VAT Conditions
.................................................................................................................... 7
3.6 CST Conditions
................................................................................................................... 7
3.7 Service Tax Conditions: Non-Inventoried
....................................................................... 8
3.8 Service Tax Conditions: Inventoried
................................................................................ 8
3.9 Tax Conditions to be Maintained
...................................................................................... 8
4.1 Create the Purchase Order
................................................................................................. 9
4.2.1 Option I: Capture Excise Invoice @ Goods Receipt
............................................... 9
4.2.2 Option II: Capture Excise Invoice separately
........................................................ 10
4.3 To check the status of all the excise invoices captured
............................................ 11
4.4 Post Excise Invoice
........................................................................................................... 11
5 Procedure for Claiming CENVAT for Capital Goods
.......................................................... 13
6 Procedure for Claiming Duties for Imported Goods
.......................................................... 14
9 Procedure for Inventorizing Custom Duties Purchased for a Depot
.............................. 18
10.1 Return Delivery (MvT : 122)
............................................................................................ 19
10.2 Cancellation of Material Documents
2
............................................................................ 20
10.3 Purchase Order Returns
................................................................................................. 22
10.4 CENVAT Adjustment Postings (J1IH Excise JV)
.................................................... 22
10.4.1 Making Adjustment Postings for Scrap
................................................................ 22
10.4.2 Making Adjustment Postings for Materials Not Used in Production
.............. 22
10.4.3 Making Adjustment Postings for Additional Excise Paid to Vendors
............ 23
10.4.4 Making Adjustment Postings for Money Transferred to PLA
........................... 24
10.4.5 Canceling Excise Invoices
...................................................................................... 24
10.4.6 Making Adjustment Postings for Other Transactions
....................................... 25
11 Subcontract Challan
............................................................................................................... 27
11.3 Subcontract Process: Return Delivery To Vendor
.................................................... 30
11.4 Subcontract Process: Cancellation of Goods Receipt
............................................. 31
11.5 Subcontracting over consumption or under consumption
..................................... 32
11.6 Challan completed 180 days reverse and recredit the challan
............................... 33
12 Frequently Asked Question
3
.................................................................................................. 33
1 THE COUNTRY INDIA VERSION (CIN)
CIN facilitates handling of tax implications during the Purchase and Sales cycles. This
country version is designed for use by businesses with operations in India as well as the
generic SAP System functions. It comprises functions designed for laws and business
practices particular to India, and a country template to help customize the system
according to local requirements. Most of the country-specific functions for India relate to
Financials and Logistics. The main areas are as follows:
Sales tax
2.1 Chapter Id
Select Chapter Id Go to New Entries and Enter Chapter Id and Description.
2.2 Material Chapter ID combination
Select material chapter ID combination box and then press icon.
Select Material & Chapter Id
Enter material, plant and chapter ID combination in the respective tabs.
Go to New Entries and Enter the details
If the material can be sent outside for subcontracting purpose then put a tick in the
check box
In the material type tab select appropriate material type.
If it is a input material then select the tab Raw material
5
If it is capital item then select Assets.
If it is a in-house produced material then select RG1.
Select GR --X ref to specify whether credit is allowed only for single goods receipt or
multiple goods receipt with single credit or multiple goods receipt with multiple credits.
In the declared column enter X if the material is declared to excise
Also enter the date of declaration.
2.3 Material Assessable value
In this section we enter the assessable value of material which is used for the purpose
to determine how much excise can be credited to CENVAT account when creating a
subcontracting challan and vendor returns.
Enter the combination plant, material number, valid from, currency, Assessable value.
Select Material Assessable Value
Go to New Entries and Enter the details
2.4 CENVAT Determination
In this section enter the input and output relationship of the material with combination of
plant, default indicator for Modvat.
Companies are required to file with the Excise authorities, a list containing the excisable
finished products manufactured and the excisable input materials required for such
production, to avail Modvat.
It is possible that an input material may be used in the production of more than one
finished product. However, if such a material is mainly used for the manufacture of a
particular finished product then the input material is identified to be the default material.
The default indicator is marked for such material.
Select Cenvat Determination
Go to New Entries and Enter the details
2.5 Vendor Excise details
6
In this section the vendor excise details are maintained.
The vendor number, his excise registration details, ECC no, Excise Range, Excise
Division, Excise Commissionerate, CST no, LST no, Permanent account number,
Excise indicator for vendor, SSI status (if he is a SSI vendor), Type of vendor and
CENVAT (This is applicable for SSI vendor only who has participated in the CENVAT
scheme).
Select Vendor Excise Details
Go to New Entries and Enter the details
NOTE : If the Vendor details are not maintained, then at the time of Vendor Excise
Invoice Capturing, the system will ask for the Vendor Excise Details, which needs
to be provided in the Miscellaneous Tab of Excise sub Icon.
3 TAX CONDITION RECORDS
Tax Conditions to be used:
3.1 Cenvatable Excise Duties Conditions (%ge)
Condition Type Description Setoff Condition Type Setoff Condition Desc
JMOP IN: BED setoff % JMX1 IN: A/P BED setoff
JECS IN ECS inventory % JEX1 IN: A/P ECS setoff
JSEC IN S&HECS invtry % JHX1 IN: A/P S&HEC setoff
JAOP IN: AED setoff % JAX1 IN: A/P AED setoff
3.2 Cenvatable Excise Duties Conditions (Qty)
Condition Type Description Setoff Condition Type Setoff Condition Desc
JMOQ IN: BED setoff Qty JMX1 IN: A/P BED setoff
JEOQ IN: ECS setoff Qty JEX1 IN: A/P ECS setoff
JSHO IN S&HECS setoff Qty JHX1 IN: A/P S&HEC setoff
JAOQ IN: AED setoff Qty JAX1 IN: A/P AED setoff
7
3.3 Non- Cenvatable Excise Duties Conditions (%ge)
Condition Type Description Setoff Condition Type Setoff Condition Desc
JMIP IN: BED inventory % JMX2 N: A/P BED inventor
JECO IN A/P ECes setoff % JEX2 IN: A/P ECS inventry
6 Change Excise
Invoice ( if Required) Vendor Ex. Inv / Date J1IEX Excise
Personnel
7 Post Excise Invoice Vendor Ex. Inv / Date J1IEX Excise
Personnel
8
Capital Goods
Transfer of Credit (
post 50% credit)
Company code / Excise
Grp. / Plant / J2I8 Excise
Personnel
9 Updating of Registers
Excise Group / Start Dt. /
End Dt. J2I5
Excise
Personnel
10 Print of Registers
Excise Group / Start Dt./
End Dt. ZJ2I6RG23C
Excise
Personnel
Businesses are allowed to set off excise duty on purchases of capital goods against
excise duty on outputs. However, unlike with raw materials, can only set off half of the
duty in the first year, and the rest in any year after that.
Prerequisites:
In the material master (J1ID), have classified the capital goods as such.
Features:
half of the excise duty to CENVAT account and post the rest to a G/L account for
CENVAT on hold. In following years, can use a report to identify the capital goods with
excise duty on hold and transfer the duty to the CENVAT account (see Transfer of
CENVAT Credit on Capital Goods).
When post an excise invoice that contains capital goods, the system posts
14
Steps:
following:
Capturing vendor excise invoices
When create an excise invoice with capital goods, have to set the material type to A
(assets), C (consumables), or T (tools).
Posting excise invoices
When to post the excise invoice, the system posts only half of the excise duty to the
CENVAT account.
When working with excise invoices that include capital goods, note the
Transfer of CENVAT Credit on Capital Goods (Transaction code: J2I8)
* *Use this report to display a list of the vendor excise invoices where the vendor has
levied excise duty but have not posted it (in full) to CENVAT account. This is particularly
useful in the case of capital goods, in order to find out how much credit remains from
previous years.
Output
The system displays a list of excise invoices with excise duty outstanding. It shows :
The total amounts of the various types of excise duties levied on the excise
invoice
How much duty has still to be posted to the CENVAT account
Select the excise invoices that want and choose
a portion
of the remaining amount, enter this amount as the amount to be credited.
The system creates an accounting document to post the duty to the CENVAT account
and creates an entry in the Part II register.
can select all or select items and then press `Transfer Credit
Transfer credit. If want to transfer only
6 Procedure for Claiming Duties for Imported Goods
Step Description Inputs T.Code Role
1 Maintain Excise Rate Material, chapter Id, J1ID Purchaser /
15
Maintenance details Assessable Value Buyer / Excise
Personnel
2 Create Purchase Order
Vendor / Material /
Qty / Plant / Price /
Maintenance details
the Chapter Id.
Chapter Id J1ID
Purchaser /
Buyer / Excise
Personnel
2 Maintain Tax
Conditions
Maintain tax conditions for
Plant/Material Group combination. FV11 Purchaser /
Buyer
3 Create Purchase
Order
Vendor / Material / Qty / Plant /
Price / Tax Code
ME21N Purchaser /
Buyer
4
Goods Receipt
(Capture Excise
Invoice)
PO No. / Qty / Excise Inv # / Ex.
Invoice Dt. Also in the line item of
Excise Tab, specify the Chapter Id
& Matrl. Type.
MIGO Stores
5
List of Excise Invoice,
where it is captured
but not Posted
Excise Group J1I7
Excise
Personnel
6 Change Excise
Invoice ( if Required) Vendor Ex. Inv / Date J1IEX Excise
Personnel
7 Post Excise Invoice Vendor Ex. Inv / Date J1IEX Excise
Personnel
8 Updating of Registers Excise Group / Start Dt. / End Dt. J2I5 Excise
Personnel
9 Print of Registers Excise Group / Start Dt. / End Dt. ZJ2I6 Excise
Personnel
8 Claiming Custom Duties Purchased from Dealer (who
has imported the Matrl.)
Use :
This domestic Vendor passes on the CVD and SAD duties, which have to be captured
as BED and AED.
The materials are procured from a domestic vendor who imports the material.
Step Description Inputs T.Code Role
1 Maintain Excise Rate
Maintenance details
Material, chapter Id,
Assessable Value J1ID
Purchaser /
Buyer /
Excise
Personnel
2 Maintain Tax
conditions
Maintain tax conditions with
BED / AED conditions as 0%,
as this is going to be
replaced by CVD and SAD
values from the pricing
FV11
Purchaser /
Buyer /
Excise
Personnel
17
procedure.
3 Create Purchase
Order
Vendor / Material / Qty /
Plant / Price / Tax Code ME21N Purchaser /
Buyer
NOTE
Maintain CVD and
SAD values in the
pricing procedure
PO Condition Tab.
PO Line Item Condition tab
specifies CVD Amt for the
condn type JEXC and SAD
for condn type ZADC.
ME21N Purchaser /
Buyer
3
Post Invoice for
Custom Vendor and
Foreign Vendor.
PO / Vendor code : Planned
Delivery Costs MIRO Accounts
4
Goods Receipt
(Capture Excise
Invoice)
PO No. / Qty / Excise Inv # /
Ex. Invoice Dt. MIGO Stores
5
List of Excise
Invoice, where it is
captured but not
Posted
Excise Group J1I7 Excise
Personnel
6
Change Excise
Invoice ( if Required) Vendor Ex. Inv / Date J1IEX
Excise
Personnel
7 Post Excise Invoice Vendor Ex. Inv / Date J1IEX
Excise
Personnel
8 Updating of
Registers
Excise Group / Start Dt./ End
Dt. J1I5 Excise
Personnel
9 Print of Registers Excise Group / Start Dt. /
End Dt.
ZJ2I6 /
ZJ2I6RG23C
Excise
Personnel
18
9 Procedure for Inventorying Custom Duties Purchased for
a Depot
Use:
captured in transaction J1IG and then the same duties are picked in sales invoice for
passing on to Customer.
The materials are procured for a depot, where, the Custom Duties get inventoried,
Process:
Step Description Inputs T.Code Role
1 Maintain Excise Rate
Maintenance details
Material, chapter Id,
Assessable Value J1ID
Purchaser /
Buyer / Excise
Personnel
2 Maintain Zero Tax conditions Maintain Zero Tax
conditions FV11
Purchaser /
Buyer / Excise
Personnel
3 Create Purchase Order
Vendor / Material / Qty /
Plant / Price / Zero Tax
Code
ME21N Purchaser /
Buyer
NOTE
Maintain all the Custom Duties
in PO Line item condition
tab For External Vendors and
also Inter Company purchases
The following Condition
types needs to be
selected for inventorying
the Custom Duties:
JCDB - IN Basic Customs
JCV3- IN CVD Inventory
JECI- IN ECSCVD:
Inventory
J1CI- IN HECS-CVD:
Inventory
JEDB- IN ECS on
Custs.Duty
JSDB- IN SH ECS on
BCD
JADI- IN Ad Duty
Cus:Inven
ME21N Purchaser /
Buyer
4
Goods Receipt (Do not
capture Excise Invoice) PO No. / Qty MIGO Stores
5 Capture Excise Invoice for
Depot
Material Doc # (GR),
Excise Group, Excise Inv
# / Dt.
J1IG Excise
Personnel
10 Procedure for CENVAT Reversals
19
Cenvat reversals due to:
1. Return delivery.
2. Cancellation of Material Document.
3. Purchase Order Returns.
4. CENVAT Adjustments.
10.1 Return Delivery (mvt type: 122)
Step Description Inputs T.Code Role
1
Goods Receipt (Return
Delivery / Material
Document)
GR Material Doc No. / Qty /
Reason for mvt. Typ. MIGO Stores
2 Create Excise Invoice
Ref Doc Type: MATD / Rej Mat
Doc No. / Series Grp. / Excise
Grp
J1IS
Excise
Personnel
3. If plant does not allow multiple goods receipts per excise invoice, must also
cancel the excise invoice:
The system changes the excise invoice status to
Canceled.
If, however, do allow multiple goods receipts per excise invoice, do not have to
cancel it.
can leave the excise invoice as it stands. Then, if another delivery of goods is received
for this excise invoice, enter the excise invoice number when goods receipt is posted .
1. Go to Transaction Code - J1IEX.
2. Select :
CANCEL and Vendor Excise Invoice
3. Enter Vendor Excise Invoice.
4. Save the Excise Invoice.
22
10.3 Purchase Order Returns
Process Flow :
Step Description Inputs T.Code Role
1 Create Purchase Order
with Returns Indicator.
Doc Type: ZRTN / Vendor /
Material / Qty / Plant / Price /
Tax Code
ME21N Purchaser /
Buyer
2
Create Outbound Delivery
w.r.t Purchase Order
Purchase Order #, Select the
proper variant. VL10B Stores
3 Post goods Issues
Do PGI with proper Reason for
MvT VL02N Stores
4 Create Excise Invoice Goods Issue Mat Doc # J1IS Excise
Personnel
5 Print Excise Invoice Excise Invoice #, Output Type :
JREC J1IV Excise
Personnel
10.4 CENVAT Adjustment Postings (J1IH Excise JV)
Use:
- use these functions to make an adjustment posting to any of CENVAT accounts.
10.4.1 Making Adjustment Postings for Scrap
Use
debited to CENVAT account.
: - follow this procedure if scrapped a material and want to reverse the excise duty
10.4.2 Making Adjustment Postings for Materials Not Used in
Production
Use:
want to reverse the excise duty debited to CENVAT account.
- follow this procedure if have not used a material in the production process and
Procedure: 1. J1IH - Excise JV / Create / Matl write-off.
2. Enter data as required, including:
Document number (This Document is of Movement Type 551 i.e. GI for Scrap)
23
CENVAT account selection group box. Specify which account is affected by the
adjustment posting is for. If the posting does not have to be remitted immediately, select
Fortnightly payment.
3. Click on Enter button. The system displays the information from the material
document.
4. Adjust the posting date as necessary.
5. Adjust the excise duty for each line item either: Manually or By assigning the line
item to an excise invoice
6. Specify which G/L accounts are to be posted to. Here can change Debit A/c as per
requirement.
7. Save the adjustment posting. System will post Excise JV Document, Accounting
Document Part2 Serial No.
10.4.3 Making Adjustment Postings for Additional Excise Paid to
Vendors
Use:
Excise Invoice button and select the proper Excise Invoice from which the
proportionate amount is to be copied. Select the Excise Invoice and click on
Continue button. It will copy BED and Ed Cess and SECess amount as per the
quantity mentioned here. It will be proposed in proportion of selected Excise Invoice
quantity and value. To enter the excise duty only, choose Header button and enter
the excise duty in the totals fields at the foot of the screen.
6. Specify which G/L accounts are to be posted to.
7. Save the adjustment posting. System will post Excise JV Document; Accounting
Document with Part2 Serial No.
TIPS to simplify Excise JV transactions: - (J1IH)
1. Assigning Excise Invoices to Line Items
Use: excise invoice associated with a line item.
make an adjustment posting; follow this procedure if want to specify the original
Procedure: 26
1. Select the line item and choose Get excise invoice. The system displays a list of all
the excise invoices that have to be posted for this vendor for this particular material.
2. Select the excise invoice and click on Enter button. The system: Enters the excise
invoice document number in the Ref. doc. field (Reference document). Calculates how
much of the excise duty from the excise invoice should be apportioned to the line item
and enters it in the excise duty fields. Then overwrite these amounts, should also
overwrite the reference document number with an explanatory text, since there is no
point in maintaining the link to the reference document anymore.
2. Specifying Which CENVAT Accounts to Adjust
Use: to be adjusted.
When make an adjustment posting, have to specify which CENVAT accounts are
Procedure: 1. Choose Determine G/L accounts. A dialog box appears that shows how much will be
posted to which G/L accounts. The accounts that are displayed depend on the excise
group and the CENVAT account that is entered on the selection screen.
2. Add another account, need to, and adjust the other postings so that the credits and
debits match.
3. Enter a business area and cost center, if necessary.
4. To close the dialog box, click on Enter button. 3. Displaying CENVAT Account
Balances To display the balances of CENVAT accounts, choose Balances. The system
displays the balances only of the CENVAT accounts that are affected by G/L postings.
27
11 Subcontract Challan
11.1 Normal Subcontract Process
Step Description Inputs T.Code Role
1 Create Subcontract Purchase
Order
Document type(NB) / Pur.org ./
Pur.group / Co.code / Material /
Qty. / Price / Plant / Requister /
Delivery date / Vendor no ./
Tax code / Item catgory(L) /
Components
ME21N Purchaser
/ Buyer
2
Create transfer Posting of
materials sent out for subcontracting
with reference to
Subcontractor PO.
Select the material, and do PGI
or create Delivery.
ME2O Stores
3 Create Subcontracting challan Materail doc / Fiscal year /
Excise group / Series group
J1IF01 Excise
Personnel
4 Print Subcontract Challan Go to transaction of Challan
Change Take print and save. J1IF11 Excise
Personnel
5 Post goods receipt (MIGO)
PO NO./Delivery Note/Posting
Material document/
challan no./fiscal year J1IFQ Excise
personnel
31
11.4 Subcontract Process: Cancellation of Goods Receipt
Step Description Inputs T.Code Role
1 Create Subcontract Purchase Order PO with sub
components.
ME21N Purchaser
/ Buyer
2
Create transfer Posting of materials
sent out for sub-contracting with
reference to Subcontractor PO.
Select the material,
and do PGI or create
Delivery.
ME2O Stores
3 Create Subcontracting challan
Materail doc / Fiscal
year / Excise group /
Series group
J1IF01 Excise
Personnel
4 Print Subcontract Challan
Go to transaction of
Challan Change
Take print and save.
J1IF11 Excise
Personnel
5 Post goods receipt (MIGO)
PO NO./Delivery
Note/Posting
date/Excise Invoice
Tab -Refer
subcontracting
challan /storage
location
MIGO Stores
6 Do the reconciliation of material
document
Material document
/challan number/year J1ifQ Excise
Personnel
7
If the received material is not with good
quality & Goods Receipt needs to be
cancelled.
Cancellation /material
document/102 and
544 movement type
/plant / material
document number /
MIGO Stores
8
Create new subcontracting challans for
this outgoing materials (as this is
cancelled/rejected), as this material had
come against old challan, and that
challan is already reconciled.
Material documents
number / excise
group/ series group
J1IF01 Excise
Personnel
9 Complete/Reverse/Recredit First
Subcontracting challan Complete the challan J1IF13 Excise
Personnel
10
Question : I have to specify BED manually and not through condition records.
Answer : The manual excise amount for BED can be specified in the Pricing Procedure
( PO Condition tab), wherein it will update the Tax Procedure.