CIN User Manuval For MM

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CIN User manuval for MM
Added by Pramodkumar.J.Mari mari, last edited by redriver on Jan 24, 2012
COUNTRY INDIA VERSION
USER MANUAL
MATERIAL MANAGEMENT
wiki.sdn.sap.com/wiki/display/bpxproj/CIN+User+manuval+for+MM 1/25
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
2 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
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
4 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
5 Procedure for Claiming CENVAT for Capital Goods............................................................................................... 3
6 Procedure for Claiming Duties for Imported Goods............................................................................................. 3
7 Procedure for Claiming CENVAT for Raw Materials w ithout Material ID.................................................... 3
8 Claiming Custom Duties Purchased from Dealer (w ho has imported the Matrl)...................................... 3
9 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 w here 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
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 w ith operations in India as w ell as the generic SAP System
functions. It comprises functions designed for law s 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 follow s:
Excise duty and the central value-added tax system (CENVAT)

Withholding tax (also know n as tax deducted at source)
Sales tax
Maintenance and printing of statutory excise registers
1.1 EXCISE REGISTRATION

Each entity is assigned its ow n excise registration number. Every factory that manufactures excisable goods is required to register separately.
1.2 EXCISE GROUP

This is a unit w ithin an excise registration, in India, w hich keeps its ow n 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) w ill 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.)
2 ESSENTIAL MASTER DATA FOR EXCISE
Transaction Code: J1ID
- Excise Master.
- Material Chapter Id Com bination.
- Material Assessable Value.
- CENVAT Determ ination
- 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 w hether credit is allow ed only for single goods receipt or multiple goods receipt w ith single credit or multiple goods receipt w ith 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 w e enter the assessable value of material w hich is used for the purpose to determine how much excise you can credit to CENVAT account w hen creating a subcontracting challan and
vendor returns.
Enter the combination plant, material number, valid from, currency, Assessable value.
Select Material Assessable Value
2.4 CENVAT Determination
In this section you have to enter the input and output relationship of the material w ith combination of plant, default indicator for modvat.
Companies are required to file w ith 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. How ever, 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
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 w ho has participated in the CENVAT scheme).
Select Vendor Excise Details
NOTE : If the Vendor details are not m aintained, then at the tim e of Vendor Excise Invoice Capturing, the system w ill ask for the Vendor Excise Details, w hich needs to be
provided in the Miscellaneous Tab of Excis 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 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)

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)

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)

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

JSRT A/P SERVICE TAX
JEC3 A/P ECS for ST
JES3 A/P SECess for ST
3.8 Service Tax Conditions: Inventoried

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 w ill be as show n below . Select one combination and maintain values
For VAT, the key combination w ill be as show n below . Select one combination and maintain values
For service Tax, the key combination w ill be only tax classification
4 Procedure for Claiming CENVAT for Raw Materials
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 Plant / Material / Vendor / Tax Classification 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 MIGO Stores
5 List of Excise Invoice, w here 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 Updation of Registers Excise Group / Start Dt / End Dt J2I5 Excise Personnel
9 Print of Registers Excise Group / Start Dt / End Dt ZJ2I6 Excise Personnel
4.1 Create the Purchase Order
Purchase Order is created, w ith 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 w ould 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 w ill come automatically ( after making the item OK).
Enter the PO Number, Vendors Delivery Challan Number. Press Enter at this point of time system w ill 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 w ill appear in the Header screen. The follow ing options are available in Excise Tab
(1) Only capture excise invoice : It w ill capture the excise details & post Part I only
(2) Capture & Post Excise Invoice : This w ill update Part1 and Part 2.
(2) Only refer excise invoice : It w ill not capture excise invoice, no part I posting
(3) Only Part 1 : This w ill update the Part 1 only
(4) No Excise Entry : There w ill 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 show n below :
The Goods Receiver can change the follow ing 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 w ill 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 w ill generate the Goods receipt Document. System w ill 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 w indow s above the Header if the Excise Invoice is being captured prior to Goods Receipt.
Select Capture Excise Invoice and Goods Receipt in w indow s above the Header if the Excise Invoice is being captured after Goods Receipt.
Press Enter, follow ing screen w ill appear
The follow ing 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 w ill 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 w ill be based on Purchase Order against w hich several line items w ill appear based on GR document number.
At the end of the day, the Goods receiver w ill generate a list of cases w here items are cenvatable &
excise invoices are `Captured. This report w ill show the Internally generated excise serial numbers. The goods receiver w ill 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 follow ing
(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 w ill receive a list from Stores attaching all the cenvat documents during the day. Then based on this list, he w ill enter transaction code J1IEX / J1IEX_P Select
`POST if no change is required.
Now you can `POST CENVAT
System w ill post the cenvat amount in RG23 Part II based on material type (inputs / Capital Goods).
How ever if you w ant to change the excise details go to the Change mode...
Here you can change the follow ing:
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 w ell as low er side, then that present)
System w ill show the RG23 Part 1 serial no., GR no. PO number. You can change the excise vendor also.
5 Procedure for Claiming CENVAT for Capital Goods
1 Maintain Excise Rate Maintenance details Material, chapter Id, Assessable Value, declae material as Asset / J1ID Purchaser / Buyer / Excise
Consumable Personnel
2 Maintain Tax Conditions Plant / Material / Vendor / Tax Classification FV11 Purchaser / Buyer
5 List of Excise Invoice, w here it is captured but not Excise Group J1I7 Excise Personnel
Posted
8 Capital Goods Transfer of Credit ( post 50% credit) Company code / Excise Grp / Plant / J2I8 Excise Personnel
10 Print of Registers Excise Group / Start Dt / End Dt ZJ2I6RG23C Excise Personnel
Businesses are allow ed to set off excise duty on purchases of capital goods against excise duty on outputs. How ever, unlike w ith 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
follow ing years, you can use a report to identify the capital goods w ith excise duty on hold and transfer the duty to the CENVAT account (see Transfer of CENVAT Credit on Capital Goods).
Steps: When w orking w ith excise invoices that include capital goods, note the follow ing:
Capturing vendor excise invoices
When you create an excise invoice w ith 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 w here 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 w ith excise duty outstanding. It show s 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 w ant and choose Transfer credit. If you w ant 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
6 Procedure for Claiming Duties for Imported Goods

1 Maintain Excise Rate Maintenance details Material, chapter Id, Assessable Value J1ID Purchaser / Buyer / Excise
Personnel
2 Create Purchase Order Vendor / Material / Qty / Plant / Price / Zero Tax ME21N Purchaser / Buyer
Code(VI)
3 Ammend Purchase Order w ith the Customs Duties conditions (for domestic Custom duty Conditions : ME22N Purchaser / Buyer
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
4 Post Invoice for Custom Vendor and Foreign Vendor. PO / Vendor code : Planned Delivery Costs MIRO Accounts
6 List of Excise Invoice, w here it is captured but not Posted Excise Group J1I7 Excise Personnel
10 Print of Registers Excise Group / Start Dt / End Dt ZJ2I6 / Excise Personnel

ZJ2I6RG23C
7 Procedure for Claiming CENVAT for Raw Materials without Material ID
1 Maintain Excise Rate Maintenance details the Chapter Id J1ID Purchaser / Buyer / Excise
Chapter Id. Personnel
2 Maintain Tax Conditions Maintian tax conditions for Plant/Material Group combination. FV11 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 MIGO Stores
Id & Matrl Type.
5 List of Excise Invoice, w here it is captured but Excise Group J1I7 Excise Personnel
not Posted
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 : The materials are procurred from a domestic vendor w ho imports the material. This domestic Vendor passes on the CVD and SAD duties, w hich have to be captured as BED and AED.
1 Maintain Excise Rate Maintenance details Material, chapter Id, Assessable Value J1ID Purchaser / Buyer /
Excise Personnel
2 Maintain Tax conditions Maintian tax conditions w ith BED / AED conditions as 0%, as this is going to be replaced by FV11 Purchaser / Buyer /
CVD and SAD values from the pricing procedure. Excise Personnel
NOTE Maintain CVD and SAD values in the pricing PO Line Item Condition tab specify CVD Amt for the condn type JEXC and SAD for condn ME21N Purchaser / Buyer
procedure PO Condition Tab. type ZADC.
3 Post Invoice for Custom Vendor and Foreign PO / Vendor code : Planned Delivery Costs MIRO Accounts
Vendor.
5 List of Excise Invoice, w here it is captured but not Excise Group J1I7 Excise Personnel
Posted
9 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, w here, 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:
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 The follow ing Condition types needs to be selected for ME21N Purchaser / Buyer
and also Inter Company purchases inventorizing the Custom Duties:
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 MIGO Stores
5 Capture Excise Invoice for Depot Material Doc # (GR), Excise Group, Excise Inv # / Dt. J1IG Excise Personnel
10 Procedure for CENVAT Reversals

Cenvat reversals due to:
1. Return delivery.
2. Cancellation of Material Document.
3. Purchase Order Returns.
4. CENVAT Adjustments.
10.1 Return Delivery (MvT : 122)

1 Goods Receipt (Return Delivery / Material Document) GR Material Doc No. / Qty / Reason for MvT MIGO Stores
2 Create Excise Invoice Ref Doc Type:MATD / Rej Mat Doc No. / Series Grp / Excise Grp J1IS Excise Personnel
3 Print Excise Invoice Ex Inv # / Year J1IV Excise Personnel
On rejection of material ( Return Delivery: using 122 movement type) , the user w ill use the transaction J1IS to generate an outgoing Excise Invoice w hich w ill 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 w ill 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 w ill be blank. Then press
h) System w ill 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 w ill not fetch automatically the Value and excise duty.
(j) Save. System w ill generate an Excise Invoice Number. Note dow n this number.
(k) Enter J1IV (Print excise invoice ).
Note : for those material w ithout 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 w ith the goods and the goods receipt has to
be reversed. Under excise law s 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 :
1 Cancellation / Material Document GR Material Doc No. / Qty / MvT: 102 MIGO Stores
2 Post Excise Invoice Vendor Excise Invoice J1IEX Excise Personnel
3 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 w ant 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, show ing w hich postings the system w ill 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 m ultiple goods receipts per excise invoice, you m ust also cancel the excise invoice:
The system changes the excise invoice status to Canceled.
If, how ever, you do allow m ultiple goods receipts per excise invoice, you do not have to cancel it.
If you w ant, 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 w hen you post the goods receipt.
1. 1. Go to Transaction Code - J1IEX.

2. Select : CANCEL and Vendor Excise Invoice
3. Enter Vendor Excise Invoice.
4. 4. Save the Excise Invoice.
10.3 Purchase Order Returns

Process Flow :
1 Create Purchase Order w ith 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 w ith 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: - 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 w ant 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 w ant to reverse the excise duty debited to your CENVAT account.
Procedure: -
1. J1IH - Excise JV / Create / Matl w rite-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 w hich 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 w hich 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 w ill 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 w ant 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 follow ing w ays:
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 w hich G/L accounts are to be posted to and Save the adjustment posting. System w ill post Excise JV Document; Accounting Document w ith 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 w hen 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 w ith 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 w ill post Excise JV Document; Accounting Document w ith Part2 Serial No.
10.4.5 Related
Canceling Excise Invoices
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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 w ant 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 w ill post Excise JV Document; Accounting Document w ith Part2 Serial No.
10.4.6 Making Adjustment Postings for Other Transactions

Use: - You follow this procedure if you w ant 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 w ant to refer to. CENVAT account selection group box Specify w hich 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 follow ing w ays: 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 w ant system to propose the BED and Ed Cess
Amount, Click on Get Excise Invoice button and select the proper Excise Invoice from w hich the proportionate amount is to be copied. Select the Excise Invoice and click on Continue button. It w ill
copy BED and Ed Cess and SECess amount as per the quantity mentioned here. It w ill 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 w hich G/L accounts are to be posted to.
7. Save the adjustment posting. System w ill post Excise JV Document; Accounting Document w ith Part2 Serial No.
TIPS to sim plify Excise JV transactions: - (J1IH)
1. 1. Assigning Excise Invoices to Line Item s
Use: - When you make an adjustment posting, you follow this procedure if you w ant to specify the original excise invoice associated w ith a line item.
Procedure: -
1. Select the line item that you w ant 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 w ant 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 overw rite these amounts, you should also overw rite the reference
document number w ith 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 w hich CENVAT accounts are to be adjusted.
Procedure: -
1. Choose Determine G/L accounts. A dialog box appears that show s how much w ill be posted to w hich 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

1 Create Subcontract Purchase Order Document type(NB) / Pur.org ./ Pur.group / Co.code / Material / Qty. / Price / Plant / Requister / Delivery ME21N Purchaser
date / Vendor no ./ Tax code / Item catgory(L) / Components / Buyer
2 Create transfer Posting of materials sent out for sub- Select the material, and do PGI or create Delivery. ME2O Stores
contracting w ith reference to Subcontractor PO.
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 Invioce Tab -Refer subcontracting challan /storage location MIGO Stores
6 Reconcile Subcontracting challan Material Document/Challan/Fiscal year J1IFQ Excise

Personnel
7 List of subcontracting challans List click on Anexure IV J1IFR Excise

Personnel
8 Complete/Reverse/Recredit Subcontracting challan Complete the challan J1IF13 Excise

Personnel
9 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-com ponents to Vendor: (ME2O)
Select the Line Item and Create Delivery or Post Goods Issue
2. 3. Create Subcontract Challan w .r.t the Transferred Material Docum ent: (J1IF01)
3. 4.
4. 4. Print of Subcontract Challan (J1IF11)
5. 5. Goods Receipt: (MIGO)
Select Refer Subcontracting Challan, and in the sub-w indow , specify the correct Challan No
If the Challan No specified is that of different Vendor, then the follow ing below message is show n.
If the Challan No specified is that of different PO, then the follow ing below message is show n.
Post Goods Receipt.
1. 6. Next Goods Receipt: (MIGO)
If the Previous Material Document for the Challan is not reconcilled, system w ill issue a Warning Message.
If the Previous GR document is not reconcilled w ith the challan, the system w ill trigger a message as show n below :
1. 7. Challan Reconcillation: (J1IFQ)
If the Challan No specified during GR, is w rong, 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. Com pletion of Challan: (J1IF13)
Save the Challan.
1. 9. List of Subcontracting Challans.
11.2 Subcontract Process where Scrap is received from Vendor

1 Create Subcontract Purchase Order Document type(NB) / Pur.org ./ Pur.group / Co.code / Material / Qty. / Price / Plant / Requister / Delivery ME21N Purchaser
date / Vendor no ./ Tax code / Item catgory(L) / Components / Buyer
2 Create transfer Posting of materials sent out for sub- Select the material, and do PGI or create Delivery. ME2O Stores
contracting w ith reference to Subcontractor PO.
Personnel
Personnel
5 Post goods receipt (MIGO) PO NO./Delivery Note/Posting date/Excise Invioce Tab -Refer subcontracting challan /storage location MIGO Stores
6 Receive scrap material from Vendor. Receipt of Scrap Material by MvT 542. MB1B / Stores
MIGO
7 Reconcile Subcontracting challan Material Document (MvT 101/542) / Challan / Fiscal year J1IFQ Excise
Personnel
8 List of subcontracting challans List click on Anexure IV J1IFR Excise

Personnel
9 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 Whatever the material received from Vendor as scrap, is to be scrapped w ith MvT 551 to a cost MB1A / Stores
center. MIGO
11.3 Subcontract Process: Return Delivery To Vendor

1 Create Subcontract Purchase Order Document type(NB) / Pur.org ./ Pur.group / Co.code / Material / Qty. / Price / Plant / ME21N Purchaser
Requister / Delivery date / Vendor no ./ Tax code / Item catgory(L) / Components / Buyer
2 Transfer Posting of sub-component material to Vendor. Select the material, and do PGI or create Delivery. ME2O Stores
Personnel
Personnel
5 Post goods receipt (MIGO) PO NO./Delivery Note/Posting date/Excise Invioce Tab -Refer subcontracting challan MIGO Stores
/storage location
6 Do the reconcilation of material document Material document /challan number/year J1IFQ Excise
Personnel
7 If the recived material fails in quality & need to send back to Vendor -return 122 and 544 movement type /plant / material docuemt number / MIGO Stores
delivery
8 Create new subcontracting challans for this outgoing materials, as this material Material documents number / excise group/ series group J1IF01 Excise
had come against old challan, and that challan is already reconcilled. Personnel
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

1 Create Subcontract Purchase Order PO w ith sub components. ME21N Purchaser

/ Buyer
2 Create transfer Posting of materials sent out for sub-contracting w ith reference to Subcontractor PO. Select the material, and do PGI or create Delivery. ME2O Stores
Personnel
Personnel
5 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
7 If the recived material is not w ith good quality & Goods Receipt needs to be cancelled. Cancellation /material document/102 and 544 movement MIGO Stores
type /plant / material docuemt number /
8 Create new subcontracting challans for this outgoing materials (as this is cancelled/rejected), as this Material documents number / excise group/ series group J1IF01 Excise
material had come against old challan, and that challan is already reconcilled. Personnel
Personnel
10 Recive back the cancelled delivery material sent by vendor against new challan. 101 and 543 movement type/ challan number/ year MIGO Stores
11 Reconcile the challan Material document/ challan no./fiscal year J1IFQ Excise
personnel
12 Complete the cahllan Challan number/fiscal year J1if13 Excise

personal
11.5 Subcontracting over consumption or under consumption

1 Create Subcontract Purchase Order PO w ith sub components. ME21N Purchaser /

Buyer
2 Create transfer Posting of materials sent out for sub-contracting w ith reference Select the material, and do PGI or create Delivery. ME2O Stores
to Subcontractor PO.
Personnel
Personnel
5 Post goods receipt (MIGO) PO NO./Delivery Note/Posting date/Excise Invioce Tab -Refer subcontracting MIGO Stores
challan /storage location
6 Do the reconcilation of material document Material document /challan number/year J1IFQ Excise
Personnel
7 If the material is over consumption do subsequnet adjustment Subsequent adjustment / parchase order / 121and 543 movement type/ Qty MIGO Stores
8 Do the reconcilation w ith this Doc #. Material document/challan no. J1IFQ Excise
personnel

Personnel
10 If the material is under consumption do subsequnet adjustment . 544 movement type w ill get triggered/purchase order number MIGO Stores
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
13 Complete the cahllan Challan number/fiscal year J1IF13 Excise

personnel
11.6 Challan completed 180 days reverse and recredit the challan
1 Challan Reverse Challan No./Fiscal year J1IF13 Excise Personnel
2 Option I: Recive the material back . 542 movement type/ material/ vendor MIGO Stores
3 Reconcile the challan w ith 542 Matrl Doc. Materail doc / Fiscal year / challan no/Excise group / Series group J1IFQ Excise Personnel
4 Complete & Recredit the challan. Challan number /fiscal year J1IF13 Excise Personnel
5 Option II: Receive the Material after 180 days as finished goods as per PO. MIGO Goods Receipt MIGO
6 Reconcile the challan w ith above GR Doc. Materail doc / Fiscal year / challan no/Excise group / Series group J1IFQ Excise Personnel
7 Complete& recredit the challan. Challan number /fiscal year J1IF13 Excise Personnel
12 Frequently Asked Question

Question: For capital Goods, in normal posting the AED CENVAT posted for the present year is 50%, w hereas it should be 100%.
Answ er : Select Excise Subtransaction type IP at the time of Posting at Excise Header Tab, w hich w ill post AED as 100%, and BED, Ecess and SHEcess as 50% for this financial year.
Question: During Post of Excise Invoice, the system doesnt allow to increase the Excise Duty Value.
Answ er : The change in duty values needs to be done in Change Excise Invoice transaction @ J1IEX and not during Posting of Excise Invoice.
Question : I have to specify BED manually and not through condition records.
Answ er : The manual excise amount for BED can be specified in the Pricing Procedure ( PO Condition tab), w herein it w ill update the Tax Procedure.
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2/9/13 SAP Community Network Wiki - BPX Community Project - CIN User manuval for MM

CIN User manuval for MM

Added by Pramodkumar.J.Mari mari, last edited by redriver on Jan 24, 2012

COUNTRY INDIA VERSION

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

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

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

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

2 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

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

4 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

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

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

9 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

11.1 Normal Subcontract Process........................................................................................................................................... 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

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

1 THE COUNTRY INDIA VERSION(CIN)

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

1.1 EXCISE REGISTRATION

1.2 EXCISE GROUP

Excise Group determines Excise Register number range

1.3 SERIES GROUP

- Material Chapter Id Com bination.

- Material Assessable Value.

- CENVAT Determ ination

- Vendor Excise Details.

Go to New Enteries and Enter Chapter Id and Description.

2.2 Material Chapter ID combination

Select Material & Chapter Id