EXCISE

Sales & Distribution

Background

The product made by a company will attract excise levies. The levies
for each product are described by the union government from time to
time, including the rate of duties each product attracts.
Each product will fall in a chapter ID and each chapter will have the
list of items of various categories that fall under it.
The excise chapter ID is classified, similar to the international
Harmonized Tariff Codes.
The rate of duties is normally applicable to the chapter ID and not by
the individual material as such.
An item can fall under only one classification irrespective of the
company or the plant which manufactures it.

Excise SD

Procedure

Create a sale order. Goto the item conditions tab and view the
following details.
UTXJ = 100%
ZEXV = 100%

JMOD / JEX2 BED

JECS / JECX ECESS
JA1X / JA1Y - HECESS

Excise SD

Procedure

Create the delivery document and create the invoice. In the invoice,
the same conditions are carried forward as in the sales order. Save the
invoice.
Next, run transaction J1iiN to create the excise invoice. The excise
invoice can be created by referring the proforma invoice or the final
invoice. Here, we use the final invoice.

Choose from billing. Give the invoice number, posting date. Leave the
sub-transaction type blank. Only when the invoice is to be posted to
different GL accounts, this will be used.

Excise SD

Procedure

Click enter to generate the excise invoice.

Item wise details of excise

are displayed here

Total excise details of the items

are displayed here.

Excise SD

Procedure

Click on balances to know the amount available in each GL accounts

for utilization.

Post the document to make the excise invoice.

If you are having manual excise invoice number, input it in the preprinted excise invoice number field. Also, enter the time of removal of
the goods from the excise go-down. On saving system displays:

Excise SD

Procedure

The entry made, can be seen in FI through the TXN FB03.

Entry Screen

Excise SD

Procedure

The entry made, can be seen in FI through the TXN FB03.

The list of documents and
the TXN from which the
details flowed is listed
here.

The GL accounts
are displayed here.

Excise SD

Procedure

When the invoice is posted to accounts, there will be two accounting

documents shown, one FI posting of the sales transaction and the
other Excise posting. The FI postings are to the receivable accounts,
while the excise postings are to the payable accounts (liability arising
out of sale, to pay to the government).

FI Postings

Excise SD

Procedure

Through J1i5, the material sold, will have to be updated in the RG1
register of excise. Also the finished goods produced, will need to be
updated in the system through the same transaction.
The following movement types need to be updated for the present
process at Sabare 601 (sales), 602 (returns), 101 (finished goods
production), 561 (initial stock).

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Sales Returns

Returns happen, when goods are bad in quality or damaged in transit

etc. The customer returns the goods, which we have to take it back.
There will be increase in our stock (when goods are physically
returned) and then we will raise a credit note on the party.
The following is the procedure:
When the customer, intimates a return, create a returns sales order
with reference to the invoice document. This helps identify the
document against which the material is being returned.
In the next step, create a inward delivery with reference to the returns
order and do a post goods receipt.
Next, create a credit note. Posting the credit note will reverse the
financial entries in the system.
At present, there is no rule, that the goods should be returned
within a specific period of time, to claim the excise benefit.

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Sales Returns

Creation of returns order:

In Returns order, give the
reason for return. Credit
block is to be released
subsequently to process
the credit memo.

If need change the

quantity and save the
document.
Click, create with reference and select billing
document tab. Enter the invoice number, click
copy to copy all or use selection list to select the
item

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Sales Returns

Creation of returns delivery:

As usual create the delivery through VL01N. Give the storage location
of receipt and give a batch number. It is best if the batch indicates the
customer from which the item came or a returns batch being followed
in the company.
Post the goods receipt. The goods will be in the blocked stock, till such
time, some one checks and ratifies, whether it can be used again or
will need to be scrapped.
In the next step, create the credit note. The credit note is created with
reference to the returns order. Use billing type RE10.
The next step is to take the excise credit for the goods returned by the
customer.

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Sales Returns

Run Transaction J1iH.

Select cancel excise invoice. Give the internal document number, the
year and series group. In the pop raised, click yes. In the details, the
excise amounts from the invoice is shown.

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Sales Returns

After checking the details, save the document to be posted.

Click determine GL accounts to
see to which GLs the amounts
are getting posted. You can also
change if need arises.

The excise cancellation has to

be done manually. It will not be
done automatically, when the
credit note is posted in FI.

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Sales Returns

To have a view of the FI and excise postings. See FI postings from the
billing document and excise document from FB03.

FI postings

Excise
postings

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Completion

This completes the basic requirements of excise processing in sales.

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