Professional Documents
Culture Documents
By Shesagiri
What is CIN?
CIN Means Country India Version
In Indian Taxing procedure, Excise Duty plays a vital role in manufacturing cenarios. Excise
related configuration is known as CIN configuration. CIN Configuration is a topic in itself.
Some info on CIN Configuration (it may not appear as understandable below, but if you check
on screen, it will be understood better)
Country Version India comes with four pricing procedures as follows:
- JINFAC (Sales from manufacturing plants)
- JINEXP (Export sales)
- JINDEP (Sales from depots)
- JINSTK (Stock transfers
CIN: IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings > Maintain
Excise Registrations
In this IMG activity, you maintain the data relating to your excise registrations.
- Enter each of your excise registrations, specifying a four-character code for each Excise
Registration Ids
In this activity, you maintain excise registration IDs. You create one ID for each of your
business's excise registrations.
- For each excise registration in your business create a registration ID, and state:
- Which taxes the registration covers (additional excise duty, special excise duty, and cess) Fields
for any taxes that are not covered will be hidden in transactions involving excise duty.
- The maximum number of items to be printed on each excise invoice
- Whether you are allowed partial CENVAT credits
Maintain Registration ID NUMBER, Excise code number, excise registration number
ECC Number: Specifies the organization's ECC number.
Excise Registration Number: A number assigned to each premises or location that has registered
as a manufacturer with the excise authorities.
Every entity with an excise registration number is required to keep its own excise books.
Excise range: Specifies the excise range in whose area the excise registration is located.
Excise Division: Specifies the excise division in whose area the excise registration is located.
Excise Collectorate: The code of the excise collectorate in whose area the excise registration is
located.
Days to be considered for excise invoice selection Number of days from document date for
excise invoice selection.
Example - If the value of this field is 20 and today is 28-03-97. The excise invoice selection will
show the related invoices only for the period 08-03-97 to 28-03-97.
Document type for TDS FI posting: Financial accounting document type for TDS posting.
Document type for FI posting on Utilisation Financial accounting document type for TDS
posting.
Indicator for item level excise duty round off - This indicator is to be used for deciding whether
Item level excise
duty amount rounding off is required during procurement cycle. If marked 'X' then the excise
duty amount will be rounded off to the nearest rupee at the Purchase order level. This will not
round off the CENVAT credit to be taken. If the duty amount is less than one rupee then no
rounding is done
Rounding off of Excise duty for outgoing excise invoice - You can round off the Excise amount
to be paid during an outgoing
Excise invoice by marking this indicator as 'X'. The rounding is done at the item level for each
item where the amount is greater than 1 Rupee.
Immediate Credit on Capital Goods - Instructs the system, when you verify a goods receipt for
capital goods, to immediately post half of the input excise duty to the appropriate CENVAT
accounts. The rest is posted the CENVAT on hold account, for use in the following year.
CVD Clearing Account - Specifies which G/L account the system credits when you take a
CENVAT credit on countervailing duty in the Incoming Excise Invoices transaction.
Exchange rate type - Key representing a type of exchange rate in the system.
- You enter the exchange rate type to store different exchange rates. Example - You can use the
exchange rate type to define a buying rate, selling rate, or average rate for translating foreign
currency amounts. You can use the average rate for the currency translation, and the bank buying
and selling rates for valuation of foreign currency amounts.
Exchange rate type to be used for Export excise duty converts - When you are creating an Excise
invoice for export sales then the exchange rate for duty calculation will be picked up using this
Exchange rate type.
Maintain Plant Settings - In this IMG activity, you maintain excise information relating to your
plants.
Plant Settings - In this activity, you maintain excise information relating to your plants.
For each plant:
- Specify whether it is a manufacturing site or a depot.
- Assign it an excise registration ID. - You can assign the same ID to more than one plant, if
required.
Depot - Indicates that the plant in question is a depot. - Depots are required to prepare register
RG 23D, and follow different procedures for goods receipt and invoice generation.
- Number of goods receipt per excise invoice.
- Multiple GR for one excise invoice, Single credit
- Multiple GR for one excise invoice, multiple credit
Maintain Excise Groups - In this IMG activity, you define your excise groups. For each excise
group, you can also control how various excise invoice transactions will work.
Excise Groups - In this activity, you define excise groups. An excise group allows you to
maintain a separate set of excise registers and excise accounts. The RG 23A, RG 23C and PLA
serial numbers are created for an excise group.
Recommendation - Under normal circumstances, excise authorities require every business to
maintain only one set of excise registers and one set of accounts. But through exemption from
the authorities, multiple books can be maintained.
If your company has only one set of excise registers, then you need to maintain only one excise
group.
1. Create one excise group for each set of registers that you need to keep.
2. Assign the excise groups to plants.
3. Maintain whether this Excise group is for a depot or not.
If you receive only one consignment for an Excise challan then you can leave GR's per EI as
blank. If you receive multiple GR's for a given Excise challan and would like to avail multiple
credit mark the GRs per EI as 'Multiple GR's for one excise invoice, multiple credit'.
Alternatively if you want to availa the credit only after all the goods receipts have been made
mark it as ' Multiple GR for one excise invoice, single credit'.
4. If you want to automatically create Excise invoice during Sales cycle at the time of billing the
tick the indicator 'Create EI'
5. During depot sales if you do not want to do RG23D selection and posting separately and
would like to complete RG23D selection in one step mark the indicator 'RG23D Auto post'. This
will post the selected records into RG23D automatically. You cannot cancel the selection later.
6. If the indicator 'Default GR qty' is marked system will default the Excise challan quantity on
to the Goods receipt if the Excise invoice number is given in the pop-up.
7. If the indicator 'Folio no create' is marked system will generate Folio numbers for RG23D
during receipt of excise invoice into depot.
8. 'Automatic posting' when ticked will post the Excise invoice other movements automatically
along with creation in single step.
9. 'Create Part1 for Block Stock' when marked will create a Part1 during the receipt of material
into Blocked stock .
10. 'Create Part1 for STO' when marked will create a Part1 during the receipt of material through
inter plant transfers.
11. 'Create Part1 for consumption stock' when marked will create a Part1 during the receipt of
material into consumption stock. Excise Group Governs which set of excise registers a business
transaction will be included in.
Following is the relation between excise group, plant and registration. - In define excise groups
in Customizing.
Then, in transactions involving excise duty, for example, when you post a vendor's excise
invoice, you specify which excise group you are using. This information tells the system which
G/L accounts to post the excise to. At the end of the period, when you come to prepare your
excise registers, you create different sets for each excise group.
Indicates that the plant in question is a depot. - Depots are required to prepare register RG 23D,
and follow different procedures for goods receipt and invoice generation.
- GR Per Excise Invoice
- Multiple GR for one excise invoice , Multiple credit
- Multiple GR for one excise invoice , Single Credit
Create Excise Invoice Automatically - Instructs the system to automatically create a Sales and
Distribution (SD) excise invoice immediately you create a commercial invoice or a pro forma
invoice.
The excise invoice is created in the background. - If you want to make use of this function, you
must also define the
default plant, excise group, and series groups in Customizing for Sales and Distribution (SD), by
choosing Excise Group - Series Group Determination.
RG23D Sales Creation and posting option - RG23D Automatic Option if selected will create
Depot excise invoice by posting the selection of excise invoices in single step. If this is not
selected then you need to separately do RG23D selection
followed by PGI and then RG23D verification and posting. If you need automatic posting of
RG23D selection then the Post Goods Issue should have been completed before running RG23D
selection.
Default excise qty in GR - If this indicator is ticked then while doing Goods Receipt using
'MB01' system will default the excise invoice quantity on to the Goods receipt document.
Folio number for depo Posting - If this indicator is marked then while creating Excise invoice for
other movements system automatically does the Verify and Post. You need not separately Post
the excise invoice
Also we can set indicator for creation of part 1 for:
- Blocked stock
- Stock transport order
- Consignment stock
Maintain Series Group - In this IMG activity, you define the different excise series groups within
your company. Series groups allow you to maintain multiple number ranges for the outgoing
excise documents. Based on excise regulations and exemptions from the authorities you can
maintain multiple number series for outgoing documents. But each of these series has to be
declared to the excise authorities.
2. Looks up the plant master data to see what status you have assigned the plant. Similarly, your
plant has status 2.
3. The system looks up the table under Excise Indicator for Plant and Customer to see what the
final excise duty indicator is for customer status 3 and plant status 2: It is 7.
4. The system determines the chapter ID of the ball bearing for the plant.
Lets assume the chapter ID at plant for the ball bearings is 1000.01.
5. Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to
chapter ID 1000.01 under
status 7.
Define Tax Code for Purchasing Documents - In this IMG activity, you define a tax code for the
purposes of calculating excise duty when you enter purchasing documents. Only carry out this
activity if you use condition-based excise
determination.
- Create a new tax code, and set the tax code type to V (input tax). Do not make any other
settings for it.
- Assign Tax Code to Company Codes
In this IMG activity, assign the tax code for purchasing documents to the company codes where
it will be used.
Only carry out this activity if you use condition-based excise determination.
Classify Condition Types - In this IMG activity, you specify which condition types you use for
which sort of tax. Note that this only applies to condition types that you use with the new excise
determination method. The system uses this information when you create a document from
another one. For example, when you enter an incoming excise invoice from a
purchase order, or when you create an outgoing excise invoice from a sales order, the system
determines the various excise duties in the excise invoice using the information that you have
entered here. In addition, when you create a purchasing document, the system only uses the
condition types that you enter here.
- For taxes on purchases, use the condition types contained in the tax procedure.
- For taxes on sales, use the condition types contained in the pricing procedures.
The standard system comes with sample settings for the tax calculation procedures and pricing
procedures.
Use these settings as a basis for your own.
IMG > Logistics - General > Tax On Goods Movement > India > Account Determination
Define G/L Accounts for Taxes - In this IMG activity, you specify which G/L accounts you will
use to record which taxes.
Requirements - You have set up G/L accounts for each of the processing keys listed below.
- Assign an account to each of the following posting keys. The accounts for VS1, VS2, and VS3
are used as clearing accounts during excise invoice verification.
- VS1 (basic excise duty)
- VS2 (additional excise duty)
- VS3 (special excise duty)
Even though this functionality is available in enterprise version, a small configuration step has to
be made in Screen Sequences for Material Master.
Following document helps you to do this configuration.
- Material Master Logistics General
1. Go to IMG Define Structure of Data Screen for each Configuring the Material master Screen
Sequence.
2. Select your screen sequence. Usually it would be 21. Select the same and click on Data Screen
in the left frame.
3. Once the data screens are exhibited, select data screen no. 15, ie. SSq. 21and Scrn 15, which is
Foreign Trade: Import Data. Select the same and click on Sub screens in the left frame.
4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select the same. Click on tab
view sub screen and ensure that the sub screen is blank.
5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 0001 and instead add
SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.
6. Save the setting.
7. Create a Material Master and check whether in Screen Foreign Trade
Import, Excise related sub screen appears.