COUNTRY INDIA VERSION USER MANUAL MATERIAL MANAGEMENT

TABLE OF CONTENT
1

THE COUNTRY INDIA VERSION(CIN)........................................................................................................................................ 3

1.1

EXCISE REGISTRATION....................................................................................................................................................... 3

1.2

EXCISE GROUP.................................................................................................................................................................... 3

1.3

SERIES GROUP..................................................................................................................................................................... 3

ESSENTIAL MASTER DATA FOR EXCISE.................................................................................................................................... 3

2.1

Chapter Id......................................................................................................................................................................... 3

2.2

Material Chapter ID combination.................................................................................................................................... 3

2.3

Material Assessable value................................................................................................................................................. 3

2.4

CENVAT Determination...................................................................................................................................................... 3

2.5

Vendor Excise details......................................................................................................................................................... 3

TAX CONDITION RECORDS........................................................................................................................................................ 3

3.1

Cenvatable Excise Duties Conditions (%ge)...................................................................................................................... 3

3.2

Cenvatable Excise Duties Conditions (Qty)...................................................................................................................... 3

3.3

Non- Cenvatable Excise Duties Conditions(%ge)............................................................................................................. 3

3.4

Non- Cenvatable Excise Duties Conditions(Qty).............................................................................................................. 3

3.5

VAT Conditions................................................................................................................................................................... 3

3.6

CST Conditions................................................................................................................................................................... 3

3.7

Service Tax Conditions: Non-Inventoried........................................................................................................................ 3

3.8

Service Tax Conditions: Inventoried................................................................................................................................. 3

3.9

Tax Conditions to be Maintained...................................................................................................................................... 3

Procedure for Claiming CENVAT for Raw Materials.............................................................................................. 3

4.1

Create the Purchase Order................................................................................................................................................ 3

4.2

Goods Receipt...................................................................................................................................................................... 3

4.2.1

Option I: Capture Excise Invoice @ Goods Receipt............................................................................................... 3

4.2.2

Option II: Capture Excise Invoice seperately.......................................................................................................... 3

4.3

To check the status of all the excise invoices captured.................................................................................................. 3

4.4

Post Excise Invoice.............................................................................................................................................................. 3

Procedure for Claiming CENVAT for Capital Goods............................................................................................... 3

Procedure for Claiming Duties for Imported Goods............................................................................................. 3

Procedure for Claiming CENVAT for Raw Materials without Material ID.................................................... 3

Claiming Custom Duties Purchased from Dealer (who has imported the Matrl)...................................... 3

Procedure for Inventorizing Custom Duties Purchased for a Depot............................................................. 3

10

Procedure for CENVAT Reversals................................................................................................................................ 3

10.1

Return Delivery (MvT : 122).............................................................................................................................................. 3

10.2

Cancellation of Material Documents.............................................................................................................................. 3

10.3

Purchase Order Returns................................................................................................................................................... 3

10.4

CENVAT Adjustment Postings (J1IH Excise JV).............................................................................................................. 3

10.4.1

Making Adjustment Postings for Scrap................................................................................................................. 3

10.4.2

Making Adjustment Postings for Materials Not Used in Production................................................................. 3

10.4.3

Making Adjustment Postings for Additional Excise Paid to Vendors................................................................ 3

10.4.4

Making Adjustment Postings for Money Transferred to PLA............................................................................. 3

10.4.5

Canceling Excise Invoices......................................................................................................................................... 3

10.4.6

Making Adjustment Postings for Other Transactions.......................................................................................... 3

11

Subcontract Challan..................................................................................................................................................... 3

11.1

Normal Subcontract Process........................................................................................................................................... 3

11.2

Subcontract Process where Scrap is received from Vendor......................................................................................... 3

11.3

Subcontract Process: Return Delivery To Vendor.......................................................................................................... 3

11.4

Subcontract Process: Cancellation of Goods Receipt................................................................................................... 3

11.5

Subcontracting over consumption or under consumption.......................................................................................... 3

11.6

Challan completed 180 days reverse and recredit the challan.................................................................................... 3

12

Frequently Asked Question........................................................................................................................................... 3

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 you 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:

Excise duty and the central value-added tax system (CENVAT)

Withholding tax (also known as tax deducted at source)

Sales tax

Maintenance and printing of statutory excise registers

1.1

EXCISE REGISTRATION

Each entity is assigned its own excise registration number. Every factory that manufactures excisable goods is required to register separately.

1.2

EXCISE GROUP

This is 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.
Excise Group determines Excise Register number range
All excise Reports (RT-12, PLA, RG23A Part I & II , RG23C Part I & II) will be generated based on this Excise Group.

1.3

SERIES GROUP

Series Group determines number range for outgoing excise invoice / challan ( e.g. 57AC5 challan etc.)

ESSENTIAL MASTER DATA FOR EXCISE

Transaction Code: J1ID

-

Excise Master.

Material Chapter Id Combination.

Material Assessable Value.

CENVAT Determination

Vendor Excise Details.

2.1

Chapter Id

Select Chapter Id
Go to New Enteries 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 Enteries 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
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 you can credit 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 Enteries and Enter the details

2.4

CENVAT Determination

In this section you have to 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 Enteries and Enter the details

2.5

Vendor Excise details

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 ind 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 Enteries 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 Excis sub Icon.

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 invory %

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

N: AED setoff Qty

JAX1

IN: A/P AED setoff

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

JSEO

IN A/P S&H setoff %

JHX2

IN: A/P S&HEC invtry

JAIP

IN AED inventory %

JAX2

IN: A/P AED inventor

3.4

Non- Cenvatable Excise Duties Conditions(Qty)

Condition Type

Description

Setoff Condition Type

Setoff Condition Desc

JMIQ

IN: BED inventory Qt

JMX2

N: A/P BED inventor

JECQ

IN ECS inventory Qty

JEX2

IN: A/P ECS inventry

JSHQ

IN S&HECS invent Qty

JHX2

IN: A/P S&HEC invtry

JAIQ

IN AED inventory Qty

JAX2

IN: A/P AED inventor

3.5

VAT Conditions

Deductable Condition Type

Description

Non Deductable Condition Type

Description

JVRD

A/P VAT RM Deductibl

JVRN

A/P VAT RM Non Deduc

JVCD

A/P VAT CG Deductibl

JVCN

A/P VAT CG Non Deduc

3.6

CST Conditions

Condition Type

Description

JVCS

A/P CST Non Deductib

3.7

Service Tax Conditions: Non-Inventoried

Condition Type

Description

JSRT

A/P SERVICE TAX

JEC3

A/P ECS for ST

JES3

A/P SECess for ST

3.8

Service Tax Conditions: Inventoried

Condition Type

Description

JSRI

A/P SERVICE TAX_INV

JEC4

A/P ECS for ST_INV

JES4

A/P SECS for ST_INV

3.9

Tax Conditions to be Maintained

Transaction Code: FV11

Specify the Condition Type & select Key Combination
As per the Key combination ( Plant/Vendor / Material), maintain the Values & Save
For E.Duty, the key combination will be as shown below. Select one combination and maintain values

For VAT, the key combination will be as shown below. Select one combination and maintain values
For service Tax, the key combination will be only tax classification

Procedure for Claiming CENVAT for Raw Materials

Step

Description

Inputs

T.Code

Role

Maintain Excise Rate Maintenance details

Material, chapter Id, Assessable Value

J1ID

Purchaser / Buyer / Excise Personnel

Maintain Tax Conditions

Plant / Material / Vendor / Tax Classification

FV11

Purchaser / Buyer

Create Purchase Order

Vendor / Material / Qty / Plant / Price / Tax

ME21N

Purchaser / Buyer

Code
4

Goods Receipt (Capture Excise Invoice)

PO No. / Qty / Excise Inv # / Ex. Invoice Dt

MIGO

Stores

List of Excise Invoice, where it is captured but not

Excise Group

J1I7

Excise Personnel

Posted
6

Change Excise Invoice ( if Required)

Vendor Ex. Inv / Date

J1IEX

Excise Personnel

Post Excise Invoice

Vendor Ex. Inv / Date

J1IEX

Excise Personnel

Updation of Registers

Excise Group / Start Dt / End Dt

J2I5

Excise Personnel

Print of Registers

Excise Group / Start Dt / End Dt

ZJ2I6

Excise Personnel

4.1

Create the Purchase Order

Purchase Order is created, with Tax code @ line item Invoice Tab. By selecting the Tax code, in the Purchase Order, the duty amount is
calculated in the Tax Procedure, as per the Tax Conditions maintained.
The main inputs to create Purchase Order would be Vendor / Material / Quantity / Plant / Requestor / Price / Tax code / Delivery Date.

4.2

Goods Receipt

4.2.1

Option I: Capture Excise Invoice @ Goods Receipt

The transaction code is MIGO for goods receipt. If the item is cenvatable and all the excise master data are already updated, the excise tab will
come automatically ( after making the item OK).
Enter the PO Number, Vendors Delivery Challan Number. Press Enter at this point of time system will copy all the relevant information from PO.
Enter recieved Quantity in the Quantity Tab quantity in Unit of Entry Field. Enter receiving storage location in Where Tab. If some text needs to
be added regarding goods receipt for the line item, then enter the text in the Text Field. Once these are entered, Check the line item as Ok, and
Enter, and a Excise Invoice tab will appear in the Header screen. The following options are available in Excise Tab
(1) Only capture excise invoice

: It will capture the excise details & post Part I only

(2) Capture & Post Excise Invoice : This will update Part1 and Part 2.
(2) Only refer excise invoice

: It will not capture excise invoice, no part I posting

(3) Only Part 1

: This will update the Part 1 only

(4) No Excise Entry

: There will be no excise entry

Select Only Capture Excise Invoice on this tab and check the Excise group.
Check the excise details related to the line item recieved material in Excise Tab in Detail Data Screen as shown below:

The Goods Receiver can change the following at the time of GR

(1) Chapter ID
(2) Excise invoice quantity
(3) Base Value / Excise Rates / Amount
(4) Description of the material as per Excise Invoice
Automatically system will recalculate the excise duty based on this excise Base value and excise rate.
Once all the data is captured correctly, check Check button in tool bar.
Press Post button to save the Goods receipt ,system will generate the Goods receipt Document. System will Automatically update the Part I
register as soon as the GR is made.

4.2.2

Option II: Capture Excise Invoice seperately

Transaction code J1IEX_C

Capture the Vendors Excise Invoice
Select Capture Excise Invoice and Purchase Order in windows above the Header if the Excise Invoice is being captured prior to Goods Receipt.

Select Capture Excise Invoice and Goods Receipt in windows above the Header if the Excise Invoice is being captured after Goods Receipt.
Press Enter, following screen will appear

The following can be changed at the time of Capturing

(1) Chapter ID
(2) Excise invoice quantity
(3) Base Value
(4) Excise Rates / Amount.

The Goods Receiver will make one GR for each excise invioce. The Supplier can later on submit a
separate Commercial invoice for all the supplies & excise Invoices. Invoice verification will be based on Purchase Order against which several
line items will appear based on GR document number.
At the end of the day, the Goods receiver will generate a list of cases where items are cenvatable &
excise invoices are `Captured. This report will show the Internally generated excise serial numbers. The goods receiver will send this report
attaching all the cenvat documents received during the day.

4.3

To check the status of all the excise invoices captured

Transaction code J1I7

Selection criteria can be mainly Excise Group.
You can select further the following
(1) No posting done
(2) Part I & Part II posted
(3) Part 1 posted, part II not posted.

4.4

Post Excise Invoice

At the end of the day, the Excise Personnel will receive a list from Stores attaching all the cenvat documents during the day. Then based on this
list, he will enter transaction code J1IEX / J1IEX_P Select `POST if no change is required.
Now you can `POST CENVAT
System will post the cenvat amount in RG23 Part II based on material type (inputs / Capital Goods).
However if you want to change the excise details go to the Change mode...
Here you can change the following:
1. Chapter Id
2. Description of material
3. Invoice No.
4. Document date
5. Ship from ( under miscellaneous tab)
6. Base price
7. Excise duty (both higher side as well as lower side, then that present)
System will show the RG23 Part 1 serial no., GR no. PO number. You can change the excise vendor also.

Procedure for Claiming CENVAT for Capital Goods

Step

Description

Inputs

T.Code

Role

Maintain Excise Rate Maintenance details

Material, chapter Id, Assessable Value, declae material as

J1ID

Purchaser / Buyer / Excise

Asset / Consumable

Personnel

Maintain Tax Conditions

Plant / Material / Vendor / Tax Classification

FV11

Purchaser / Buyer

Create Purchase Order

Vendor / Material / Qty / Plant / Price / Tax Code

ME21N

Purchaser / Buyer

Goods Receipt (Capture Excise Invoice)

PO No. / Qty / Excise Inv # / Ex. Invoice Dt

MIGO

Stores

List of Excise Invoice, where it is captured

Excise Group

J1I7

Excise Personnel

but not Posted

6

Change Excise Invoice ( if Required)

Vendor Ex. Inv / Date

J1IEX

Excise Personnel

Post Excise Invoice

Vendor Ex. Inv / Date

J1IEX

Excise Personnel

Capital Goods Transfer of Credit ( post 50% Company code / Excise Grp / Plant /

J2I8

Excise Personnel

credit)
9

Updation 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,
you 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) , you have classified the capital goods as such.
Features : When you post an excise invoice that contains capital goods, the system posts half of the excise duty to your CENVAT account and
posts the rest to a G/L account for CENVAT on hold. In following years, you 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).
Steps: When working with excise invoices that include capital goods, note the following:

Capturing vendor excise invoices

When you create an excise invoice with capital goods, you have to set the material type to A (assets), C (consumables), or T (tools).

Posting excise invoices

When you come to post the excise invoice, the system posts only half of the excise duty to the CENVAT account.
Transfer of CENVAT Credit on Capital Goods (Transaction code : J2I8)
* *You use this report to display a list of the vendor excise invoices where the vendor has levied excise duty but you have not posted it (in full) to
your 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 you:

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 you want and choose Transfer credit. If you want to transfer only 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.
You can select all or select items and then press `Transfer Credit

Procedure for Claiming Duties for Imported Goods

Step

Description

Inputs

T.Code

Role

Maintain Excise Rate Maintenance details

Material, chapter Id, Assessable Value

J1ID

Purchaser / Buyer / Excise

Personnel

Create Purchase Order

Vendor / Material / Qty / Plant / Price /

ME21N

Purchaser / Buyer

ME22N

Purchaser / Buyer

Zero Tax Code(VI)

3

Ammend Purchase Order with the Customs Duties

Custom duty Conditions :

conditions (for domestic custom vendor)

JCDB - IN Basic Customs

JCV1 - IN CVD - Foreign Ven
JECV - IN ECS-CVD:ForVend
J1CV- IN HECS-CVD:For Ven
JEDB- IN ECS on Cust Duty
JSDB - IN SH ECS on BCD
JADC - IN Ad Duty Cus:For V

Post Invoice for Custom Vendor and Foreign Vendor.

PO / Vendor code : Planned Delivery Costs MIRO

Accounts

Goods Receipt (Capture Excise Invoice)

PO No. / Qty / Excise Inv # / Ex. Invoice

MIGO

Stores

Dt
6

List of Excise Invoice, where it is captured but not Posted

Excise Group

J1I7

Excise Personnel

Change Excise Invoice ( if Required)

Vendor Ex. Inv / Date

J1IEX

Excise Personnel

Post Excise Invoice

Vendor Ex. Inv / Date

J1IEX

Excise Personnel

Updation of Registers

Excise Group / Start Dt / End Dt

J2I5

Excise Personnel

10

Print of Registers

Excise Group / Start Dt / End Dt

ZJ2I6 / ZJ2I6RG23C Excise Personnel

7 Procedure for Claiming CENVAT for Raw Materials without

Material ID

Step

Description

Inputs

T.Code

Role

Maintain Excise Rate Maintenance

Chapter Id

J1ID

Purchaser / Buyer / Excise

details the Chapter Id.

Personnel

Maintain Tax Conditions

Maintian tax conditions for Plant/Material Group combination.

FV11

Purchaser / Buyer

Create Purchase Order

Vendor / Material / Qty / Plant / Price / Tax Code

ME21N

Purchaser / Buyer

Goods Receipt (Capture Excise Invoice) PO No. / Qty / Excise Inv # / Ex. Invoice Dt. Also in the line item of

MIGO

Stores

Excise Group

J1I7

Excise Personnel

Excise Tab, specify the Chapter Id & Matrl Type.

5

List of Excise Invoice, where it is

captured but not Posted

Change Excise Invoice ( if Required)

Vendor Ex. Inv / Date

J1IEX

Excise Personnel

Post Excise Invoice

Vendor Ex. Inv / Date

J1IEX

Excise Personnel

Updation of Registers

Excise Group / Start Dt / End Dt

J2I5

Excise Personnel

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 : The materials are procurred from a domestic vendor who imports the material. This domestic Vendor passes on the CVD and SAD duties,
which have to be captured as BED and AED.
Step

Description

Inputs

T.Code

Role

Maintain Excise Rate Maintenance

Material, chapter Id, Assessable Value

J1ID

Purchaser / Buyer /

details
2

Maintain Tax conditions

Excise Personnel
Maintian tax conditions with BED / AED conditions as 0%, as

FV11

this is going to be replaced by CVD and SAD values from the

Purchaser / Buyer /
Excise Personnel

pricing procedure.
3

Create Purchase Order

Vendor / Material / Qty / Plant / Price / Tax Code

ME21N

Purchaser / Buyer

NOTE

Maintain CVD and SAD values in the

PO Line Item Condition tab specify CVD Amt for the condn ME21N

Purchaser / Buyer

pricing procedure PO Condition Tab.

type JEXC and SAD for condn type ZADC.

Post Invoice for Custom Vendor and

PO / Vendor code : Planned Delivery Costs

Foreign Vendor.

MIRO

Accounts

Goods Receipt (Capture Excise Invoice) PO No. / Qty / Excise Inv # / Ex. Invoice Dt

MIGO

Stores

List of Excise Invoice, where it is

Excise Group

J1I7

Excise Personnel

captured but not Posted

6

Change Excise Invoice ( if Required)

Vendor Ex. Inv / Date

J1IEX

Excise Personnel

Post Excise Invoice

Vendor Ex. Inv / Date

J1IEX

Excise Personnel

Updation of Registers

Excise Group / Start Dt / End Dt

J1I5

Excise Personnel

Print of Registers

Excise Group / Start Dt / End Dt

ZJ2I6 /

Excise Personnel

ZJ2I6RG23C

9 Procedure for Inventorizing Custom Duties Purchased for a

Depot
Use : The materials are procurred for a depot, where, the Custom Duties get inventorized, captured in transaction J1IG and then the same duties
are picked in sales invoice for passing on to Customer.
Process:
Step

Description

Inputs

T.Code

Role

Maintain Excise Rate Maintenance details

Material, chapter Id, Assessable Value

J1ID

Purchaser / Buyer /
Excise Personnel

Maintain Zero Tax conditions

Maintain Zero Tax conditions

FV11

Purchaser / Buyer /
Excise Personnel

Create Purchase Order

Vendor / Material / Qty / Plant / Price / Zero Tax ME21N

Purchaser / Buyer

Code
NOTE

Maintain all the Custom Duties in PO Line item condition

The following Condition types needs to be

tab For External Vendors and also Inter Company purchases

selected for inventorizing the Custom Duties:

ME21N

Purchaser / Buyer

MIGO

Stores

JCDB - IN Basic Customs

JCV3- IN CVD Inventory
JECI- IN ECS-CVD:Inventory
J1CI- IN HECS-CVD: Inven'y
JEDB- IN ECS on Cust Duty
JSDB- IN SH ECS on BCD
JADI- IN Ad Duty Cus:Inven
4

Goods Receipt (Do not capture Excise Invoice)

PO No. / Qty

Capture Excise Invoice for Depot

Material Doc # (GR), Excise Group, Excise Inv # / J1IG

Dt.

10

Procedure for CENVAT Reversals

Cenvat reversals due to:

1.

Return delivery.

2.

Cancellation of Material Document.

Excise Personnel

3.

Purchase Order Returns.

4.

CENVAT Adjustments.

10.1

Return Delivery (MvT : 122)

Step

Description

Inputs

T.Code

Role

Goods Receipt (Return Delivery / Material Document) GR Material Doc No. / Qty / Reason for MvT

MIGO

Stores

Create Excise Invoice

Ref Doc Type:MATD / Rej Mat Doc No. / Series Grp / Excise Grp J1IS

Excise Personnel

Print Excise Invoice

Ex Inv # / Year

Excise Personnel

J1IV

On rejection of material ( Return Delivery: using 122 movement type) , the user will use the transaction J1IS to generate an outgoing Excise
Invoice which will reverse the cenvat credit.
Steps involved:
(a) Enter MIGO
(b) Select Return Delivery & Material Document
(c) Enter the Original material document no. (GR No.)
(d) Enter reason for movement
(e) Check & Post. System will generate a document number.

For Excise Invoice creation ( to send back the material)

(a) Transaction Code: J1IS
(b) Reference Doc. Type MATD
(c) Document No. is the rejected GR No.
(d) Enter Document year, Series Group and Excise Group.
(g) Sub transaction type will be blank. Then press
h) System will display cenvat amount, chapter ID, quantity etc. If everything is OK
(i) Please remember, if the RG23 part II is not posted for this GR, system will not fetch automatically the Value and excise duty.
(j) Save. System will generate an Excise Invoice Number. Note down this number.
(k) Enter J1IV (Print excise invoice ).

Note : for those material without Material ID, a dummy material ID needs to be created and assigned during Excise Invoice Creation in J1IS. The
Description of the Material can then be changed to the original material description, that is being sent out.

10.2

Cancellation of Material Documents

Purpose : Assume you have posted a goods receipt and then posted the CENVAT on the excise invoice accordingly. Then it transpires there is a
problem with the goods and the goods receipt has to be reversed. Under excise laws that means you are no longer entitled to the CENVAT credit.
In the SAP System, therefore, you have to reverse CENVAT posting correspondingly.
Process Flow:
Step

Description

Inputs

Tcode

Role

Cancellation / Material Document

GR Material Doc No. / Qty / MvT: 102

MIGO

Stores

Post Excise Invoice

Vendor Excise Invoice

J1IEX

Excise Personnel

Cancel Excise Invoice (if required)

Vendor Excise Invoice

J1IEX

Excise Personnel

1. You reverse the goods receipt:

1.

Go to Transaction Code - MIGO and select: Cancellation and Material Document

2.

Enter the number of the goods receipt that you want to cancel

3.

Choose the line item and Flag the line items as OK

4.

Save the reversal document

5.

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.

2. You reverse the CENVAT posting on the excise invoice:

1.

6.

Go to Transaction Code - J1IEX.

2.

Select : Post CENVAT and Vendor Excise Invoice

3.

Enter the Vendors Excise Invoice Number.

4.

Choose Simulate.

5.

A dialog box appears, showing which postings the system will make to reverse the CENVAT.

6.

Choose Post CENVAT.

- The System :
-

Creates an accounting document to reverse the CENVAT postings

Creates a corresponding entry in Part II of the appropriate excise register

3. If your plant does not allow multiple goods receipts per excise invoice, you must also cancel the excise invoice:
The system changes the excise invoice status to Canceled.
If, however, you do allow multiple goods receipts per excise invoice, you do not have to cancel it.
If you want, you can leave the excise invoice as it stands. Then, if you receive another delivery of goods for this excise invoice, enter the excise
invoice number when you post the goods receipt.
1.

1.

2.

Select : CANCEL and Vendor Excise Invoice

3.

Enter Vendor Excise Invoice.

4.

4.

10.3

Go to Transaction Code - J1IEX.

Save the Excise Invoice.

Purchase Order Returns

Process Flow :
Step

Description

Inputs

T.Code

Role

Create Purchase Order with Returns Indicator.

Doc Type: ZRTN / Vendor / Material / Qty / Plant / Price / Tax Code

ME21N

Purchaser / Buyer

Create Outbound Delivery w.r.t Purchase Order

Purchase Order #, Select the proper variant.

VL10B

Stores

Post goods Issues

Do PGI with proper Reason for MvT

VL02N

Stores

Create Excise Invoice

Goods Issue Mat Doc #

J1IS

Excise Personnel

Print Excise Invoice

Excise Invoice #, Output Type : JREC

J1IV

Excise Personnel

10.4

CENVAT Adjustment Postings (J1IH Excise JV)

Use: - You use these functions to make an adjustment posting to any of your CENVAT accounts.

10.4.1

Making Adjustment Postings for Scrap

Use: - You follow this procedure if you have scrapped a material and want to reverse the excise duty debited to your CENVAT account.

10.4.2

Making Adjustment Postings for Materials Not Used in Production

Use: - You follow this procedure if you have not used a material in the production process and want to reverse the excise duty debited to your
CENVAT account.
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)
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 you can change Debit A/c as per your 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: - You follow this procedure if a vendor has increased the amount of excise duty that it originally charged you and you want to debit the
difference to your CENVAT account.
Procedure: 1. J1IH / Excise JV / Additional excise.
2. Enter data as required. In the Document number field, enter then number of the document sent to you by the vendor. Click on Enter button.
3. Adjust the posting date as necessary and Enter Vendor Name.
4. Enter the amount of excise duty in either of the following ways:
To enter line items for different materials and the excise duty accordingly, choose Details button and enter the line items in the table. Here
Enter Material code, quantity as per excise invoice, reference document (i.e. GRN Document), batch no., BED and Ed Cess Amount to be posted.
To enter the excise duty only, choose Header button and enter the excise duty in the totals fields at the foot of the screen.
5. If the duty qualifies as countervailing duty (CVD): a. Select CVD applicable. b. Enter the CVD amount in the BED amount field.

6. Specify which G/L accounts are to be posted to and Save the adjustment posting. System will post Excise JV Document; Accounting Document
with Part 2 Serial No.

10.4.4

Making Adjustment Postings for Money Transferred to PLA

Use: - You follow this procedure to make an adjustment posting when you transfer money to your personal ledger account (PLA).
Prerequisites: - You have already transferred the money to your PLA at the bank, using a TR6 challan, and have posted the corresponding
accounting document.
Procedure: 1. J1IH / Excise JV / TR6 challan.
2. Enter data as required, including the document number. You can enter either the challan number OR the number of the accounting document
(This document is to be first created through T. Code FB50. In this Document Debit PLA on Hold A/c and Credit Bank A/c with the Amount to be
transferred in PLA CENVAT Accounts)
3. Click on Enter button. If you entered the accounting document number, the system displays the information from it.
4. Enter the amounts against the accounts that you require.
5. Save the adjustment posting.
6. System will post Excise JV Document; Accounting Document with Part2 Serial No.

10.4.5

Canceling Excise Invoices

Use: - You follow this procedure in order to cancel an outgoing excise invoice. It reverses any excise duty accounted for.
Procedure: 1. J1IH / Excise JV / Cancel exc. inv.
2. Enter the number, year, and series group of the excise invoice that you want to cancel. A dialog box appears.Choose Yes.
3. Before posting the document check the Accounting document going to be generated. Here click on Determine G/L Accounts button.
4. Save the adjustment posting. System will post Excise JV Document; Accounting Document with Part2 Serial No.

10.4.6

Making Adjustment Postings for Other Transactions

Use: - You follow this procedure if you want to make an adjustment posting that does not fall into any of the other categories of adjustment offered
by this function. You can only use an external document as your reference document.
Procedure: 1. J1IH / Excise JV / Other adj.
2. Enter data as required, including: Document number Enter the number of the external document that you want to refer to. 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 and enter Vendor code as per requirement.
5. Enter the amount of excise duty in either of the following ways: To enter line items for different materials and the excise duty accordingly,
choose Details button and enter the line items in the table. Here fill details like Material Code, Quantity as per Excise Invoice, Batch No,
Reference (i.e. GRN Document), BED and Ed Cess Amount manually. If you want system to propose the BED and Ed Cess Amount, Click on
Get 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.

1.

Assigning Excise Invoices to Line Items

Use: - When you make an adjustment posting, you follow this procedure if you want to specify the original excise invoice associated with a line
item.
Procedure: 1. Select the line item that you want and choose Get excise invoice. The system displays a list of all the excise invoices that you have posted from
this vendor for this particular material.
2. Select the excise invoice that you want 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. If you then overwrite these amounts, you 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.
1.

2.

Specifying Which CENVAT Accounts to Adjust

Use: - When you make an adjustment posting, you have to specify which CENVAT accounts are to be adjusted.
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 you entered on the selection screen.
2. Add another account, if you 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 your CENVAT accounts,
choose Balances. The system displays the balances only of the CENVAT accounts that are affected by your G/L postings.

11

Subcontract Challan

11.1

Normal Subcontract Process

Step

Description

Inputs

T.Code

Role

Create Subcontract Purchase Order

Document type(NB) / Pur.org ./ Pur.group / Co.code / Material / Qty. /

ME21N

Purchaser /

Price / Plant / Requister / Delivery date / Vendor no ./ Tax code / Item

Buyer

catgory(L) / Components
2

Create transfer Posting of materials sent out for sub- Select the material, and do PGI or create Delivery.

ME2O

Stores

J1IF01

Excise

contracting with reference to Subcontractor PO.

3

Create Subcontracting challan

Materail doc / Fiscal year / Excise group / Series group

Personnel
4

Print Subcontract Challan

Go to transaction of Challan Change Take print and save.

J1IF11

Excise
Personnel

Post goods receipt (MIGO)

PO NO./Delivery Note/Posting date/Excise Invioce Tab -Refer

MIGO

Stores

J1IFQ

Excise

subcontracting challan /storage location

6

Reconcile Subcontracting challan

Material Document/Challan/Fiscal year

Personnel
7

List of subcontracting challans

List click on Anexure IV

J1IFR

Excise
Personnel

Complete/Reverse/Recredit Subcontracting challan

Complete the challan

J1IF13

Excise
Personnel

Display Subcontracting challan

Display Subcontracting challan

J1IF12

Excise

Personnel

Process:
1.

1.

Create Subcontract Purchase Order :

Header Material

Sub-Component

1.

2.

Transfer Posting of Sub-components to Vendor: (ME2O)

Select the Line Item and Create Delivery or Post Goods Issue

2.

3.

3.

4.

4.

4.

Create Subcontract Challan w.r.t the Transferred Material Document: (J1IF01)

Print of Subcontract Challan (J1IF11)

5.

5.

Goods Receipt: (MIGO)

Select Refer Subcontracting Challan, and in the sub-window, specify the correct Challan No

If the Challan No specified is that of different Vendor, then the following below message is shown.

If the Challan No specified is that of different PO, then the following below message is shown.

Post Goods Receipt.

1.

6.

Next Goods Receipt: (MIGO)

If the Previous Material Document for the Challan is not reconcilled, system will issue a Warning Message.
If the Previous GR document is not reconcilled with the challan, the system will trigger a message as shown below:

7.

Challan Reconcillation: (J1IFQ)

If the Challan No specified during GR, is wrong, then delete the challan Assignment, select the function here.

Select this icon, to bring in the Qty from Material Doc, to Assigned Qty in Challan.

Save the Challan.

1.

8.

Completion of Challan: (J1IF13)

Save the Challan.

1.

9.

List of Subcontracting Challans.

11.2

Subcontract Process where Scrap is received from Vendor

Step

Description

Inputs

T.Code

Role

Create Subcontract Purchase Order

Document type(NB) / Pur.org ./ Pur.group / Co.code / Material /

ME21N

Purchaser /

Qty. / Price / Plant / Requister / Delivery date / Vendor no ./ Tax

Buyer

code / Item catgory(L) / Components

2

Create transfer Posting of materials sent out for sub-

Select the material, and do PGI or create Delivery.

ME2O

Stores

Materail doc / Fiscal year / Excise group / Series group

J1IF01

Excise

contracting with reference to Subcontractor PO.

3

Create Subcontracting challan

Personnel
4

Print Subcontract Challan

Go to transaction of Challan Change Take print and save.

J1IF11

Excise
Personnel

Post goods receipt (MIGO)

PO NO./Delivery Note/Posting date/Excise Invioce Tab -Refer

MIGO

Stores

MB1B /

Stores

subcontracting challan /storage location

6

Receive scrap material from Vendor.

Receipt of Scrap Material by MvT 542.

MIGO
7

Reconcile Subcontracting challan

Material Document (MvT 101/542) / Challan / Fiscal year

J1IFQ

Excise
Personnel

List of subcontracting challans

List click on Anexure IV

J1IFR

Excise
Personnel

Complete/Reverse/Recredit Subcontracting challan

Complete the challan

J1IF13

Excise
Personnel

10

Display Subcontracting challan

Display Subcontracting challan

J1IF12

Excise
Personnel

11

Scrapping the Material

11.3

Whatever the material received from Vendor as scrap, is to be

MB1A /

scrapped with MvT 551 to a cost center.

MIGO

Stores

Subcontract Process: Return Delivery To Vendor

Step

Description

Inputs

T.Code

Role

Create Subcontract Purchase Order

Document type(NB) / Pur.org ./ Pur.group / Co.code /

ME21N

Purchaser /

Material / Qty. / Price / Plant / Requister / Delivery date /

Vendor no ./ Tax code / Item catgory(L) / Components

Buyer

Transfer Posting of sub-component material to Vendor.

Select the material, and do PGI or create Delivery.

ME2O

Stores

Create Subcontracting challan

Materail doc / Fiscal year / Excise group / Series group

J1IF01

Excise
Personnel

Print Subcontract Challan

Go to transaction of Challan Change Take print and save.

J1IF11

Excise
Personnel

Post goods receipt (MIGO)

PO NO./Delivery Note/Posting date/Excise Invioce Tab

MIGO

Stores

J1IFQ

Excise

-Refer subcontracting challan /storage location

6

Do the reconcilation of material document

Material document /challan number/year

Personnel
7

If the recived material fails in quality & need to send back to

122 and 544 movement type /plant / material docuemt

Vendor -return delivery

number /

Create new subcontracting challans for this outgoing materials,

Material documents number / excise group/ series group

MIGO

Stores

J1IF01

Excise

as this material had come against old challan, and that challan is

Personnel

already reconcilled.
9

Complete/Reverse/Recredit First Subcontracting challan

Complete the challan

J1IF13

Excise
Personnel

10

Recive back the return delivery materialsent by vendor

101 and 543 movement type/ challan number/ year

MIGO

Stores

11

Again Reconcile & complete the return delivery challan.

Material document/ challan no./fiscal year

J1IFQ

Excise
personnel

11.4

Subcontract Process: Cancellation of Goods Receipt

Step

Description

Inputs

T.Code

Role

Create Subcontract Purchase Order

PO with sub components.

ME21N

Purchaser /
Buyer

Create transfer Posting of materials sent out for sub-contracting with reference Select the material, and do PGI or create
to Subcontractor PO.

Delivery.

Create Subcontracting challan

Materail doc / Fiscal year / Excise group /

ME2O

Stores

J1IF01

Excise

Series group
4

Print Subcontract Challan

Go to transaction of Challan Change Take

Personnel
J1IF11

print and save.

5

Post goods receipt (MIGO)

PO NO./Delivery Note/Posting date/Excise

Excise
Personnel

MIGO

Stores

J1ifQ

Excise

Invioce Tab -Refer subcontracting challan

/storage location
6

Do the reconcilation of material document

Material document /challan number/year

Personnel
7

If the recived material is not with good quality & Goods Receipt needs to be

Cancellation /material document/102 and 544 MIGO

cancelled.

movement type /plant / material docuemt

Stores

number /
8

Create new subcontracting challans for this outgoing materials (as this is

Material documents number / excise group/

J1IF01

Excise

cancelled/rejected), as this material had come against old challan, and that

series group

Personnel

challan is already reconcilled.

9

Complete/Reverse/Recredit First Subcontracting challan

Complete the challan

J1IF13

Excise
Personnel

10

11

Recive back the cancelled delivery material sent by vendor against new

101 and 543 movement type/ challan number/ MIGO

challan.

year

Reconcile the challan

Material document/ challan no./fiscal year

J1IFQ

Stores

Excise
personnel

12

Complete the cahllan

11.5

Challan number/fiscal year

J1if13

Excise personal

Subcontracting over consumption or under consumption

Step

Description

Inputs

T.Code

Role

Create Subcontract Purchase Order

PO with sub components.

ME21N

Purchaser /
Buyer

Create transfer Posting of materials sent out for sub-contracting Select the material, and do PGI or create Delivery.

ME2O

Stores

with reference to Subcontractor PO.

3

Create Subcontracting challan

Materail doc / Fiscal year / Excise group / Series group

J1IF01

Excise Personnel

Print Subcontract Challan

Go to transaction of Challan Change Take print and save. J1IF11

Excise Personnel

Post goods receipt (MIGO)

PO NO./Delivery Note/Posting date/Excise Invioce Tab

MIGO

Stores

-Refer subcontracting challan /storage location

6

Do the reconcilation of material document

Material document /challan number/year

J1IFQ

Excise Personnel

If the material is over consumption do subsequnet adjustment

Subsequent adjustment / parchase order / 121and 543

MIGO

Stores

movement type/ Qty

8

Do the reconcilation with this Doc #.

Material document/challan no.

J1IFQ

Excise personnel

Complete/Reverse/Recredit First Subcontracting challan

Complete the challan

J1IF13

Excise Personnel

10

If the material is under consumption do subsequnet

544 movement type will get triggered/purchase order

MIGO

Stores

adjustment .

number

11

Create new challan w.r.t the 544 MvT Document.

Create new challan w.r.t the 544 MvT Document.

J1IF01

Excise personnel

12

Post goods receipt (MIGO)

MIGO Goods Reciept

MIGO

12

Reconcile the challan

Material document/ challan no./fiscal year

J1IFQ

Excise personnel

Complete the cahllan

Challan number/fiscal year

J1IF13

Excise personnel

13

11.6

Challan completed 180 days reverse and recredit the challan

Step

Description

Inputs

T.Code

Role

Challan Reverse

Challan No./Fiscal year

J1IF13

Excise Personnel

Option I: Recive the material back .

542 movement type/ material/ vendor

MIGO

Stores

Reconcile the challan with 542 Matrl Doc.

Materail doc / Fiscal year / challan no/Excise group /

J1IFQ

Excise Personnel

J1IF13

Excise Personnel

Series group
4

Complete & Recredit the challan.

Challan number /fiscal year

Option II: Receive the Material after 180 days as finished goods MIGO Goods Receipt

MIGO

as per PO.
6

Reconcile the challan with above GR Doc.

Materail doc / Fiscal year / challan no/Excise group /

J1IFQ

Excise Personnel

J1IF13

Excise Personnel

Series group
7

Complete& recredit the challan.

Challan number /fiscal year