SAP SD CIN Configuration
By Shesagiri
What is CIN?
CIN Means Country India Version
In Indian Taxing procedure, Excise Duty plays a vital
role in manufacturing cenario’s. Excise related configuration is known
as CIN configuration. CIN Configuration is a topic in itself.
Some info on CIN Configuration (it may not appear as understandable
below, but if you check on screen, it will be understood better)
Country Version India comes with four pricing procedures
as follows:
- JINFAC (Sales from manufacturing plants)
- JINEXP (Export sales)
- JINDEP (Sales from depots)
- JINSTK (Stock transfers
CIN: IMG > Logistics - General > Tax on Goods Movement
> India > Basic Settings > Maintain Excise Registrations
In this IMG activity, you maintain the data relating to
your excise registrations.
- Enter each of your excise registrations, specifying
a four-character code for each Excise Registration Ids
In this activity, you maintain excise registration IDs.
You create one ID for each of your business's excise registrations.
- For each excise registration in your business create
a registration ID, and state:
- Which taxes the registration covers (additional excise
duty, special excise duty, and cess) Fields for any taxes that are not
covered will be hidden in transactions involving excise duty.
- The maximum number of items to be printed on each excise
invoice
- Whether you are allowed partial CENVAT credits
Maintain Registration ID NUMBER, Excise code number, excise
registration number
ECC Number: Specifies the organization's ECC number.
Excise Registration Number: A number assigned to
each premises or location that has registered as a manufacturer with the
excise authorities.
Every entity with an excise registration number is required
to keep its own excise books.
Excise range: Specifies the excise range in whose area
the excise registration is located.
Excise Division: Specifies the excise division in whose
area the excise registration is located.
Excise Collectorate: The code of the excise collectorate
in whose area the excise registration is located.
Indicator for confirming, AED usage Additional Excise
duty Percentage.
These are livable under the additional duties of excise
act. These duties are in addition to basic excise duty and special excise
duty. Example - Additional Excise duty is livable in case of textile products,
tobacco and sugar.
Similarly for SED CESS Number of Items in Excise Invoice
Shows the maximum number of line items that the authorities allow per excise
invoice.
Dependencies - This information is used when you create
an excise invoice in Sales and Distribution (SD) for factory sales and
for other movements. This information is used to split the transfer
postings' items into multiple subcontracting challans.
Excise register set description: Description of the excise
registers set.
Partial CENVAT Credit: Indicates that the excise registration
ID is allowed to credit only a portion of its input excise duty to its
CENVAT account
Dependencies - When you post a goods receipt, the system
splits the input excise duty on the material into its deductible and nondeductible
amounts. It posts the deductible duty to the appropriate CENVAT account,
and adds the nondeductible duty to the material value.
This information is also shown when you post the vendor's
excise invoice.
Maintain Company Code Settings.
In this IMG activity, you maintain the data relating
to your company codes.
Document Type for CENVAT Postings.
It controls, which document type the system uses when
making CENVAT postings in Financial Accounting (FI). Here ED is document
type for cenvat posting.
Indicator for providing debit account overwriting
Debit Account Overwrite Indicator. X - Indicates debit
accounts can be overwritten. Use In excise journal voucher transaction.
It provides the flexibility to the user to enter the debit account of his
choice depending on the nature of transaction.
Automatic balance Indicator - Excise year start month.
The calendar month marking the beginning of the excise year. This
start month represents the month for the start of the excise invoice number
range. The month 04 is entered here indicating April of the calendar year
as the start month for excise invoices. Any change by the Excise authorities
regarding start month should be taken care of by an entry in this field
and initialization.
Excise invoice selection procedure :Excise invoice selection
type. To indicate the method opted by the company for selecting the excise
invoice. It can be either earliest or latest invoices that were received.
Number of excise invoices to be selected Indicates the number of excise
invoices that needs to be selected in the excise invoice selection.
Days to be considered for excise invoice selection Number
of days from document date for excise invoice selection.
Example - If the value of this field is 20 and today
is 28-03-97. The excise invoice selection will show the related invoices
only for the period 08-03-97 to 28-03-97.
Document type for TDS FI posting: Financial accounting
document type for TDS posting.
Document type for FI posting on Utilisation Financial
accounting document type for TDS posting.
Indicator for item level excise duty round off - This
indicator is to be used for deciding whether Item level excise
duty amount rounding off is required during procurement
cycle. If marked 'X' then the excise duty amount will be rounded off to
the nearest rupee at the Purchase order level. This will not round off
the CENVAT credit to be taken. If the duty amount is less than one rupee
then no rounding is done
Rounding off of Excise duty for outgoing excise invoice
- You can round off the Excise amount to be paid during an outgoing
Excise invoice by marking this indicator as 'X'.
The rounding is done at the item level for each item where the amount is
greater than 1 Rupee.
Immediate Credit on Capital Goods - Instructs the system,
when you verify a goods receipt for capital goods, to immediately post
half of the input excise duty to the appropriate CENVAT accounts.
The rest is posted the CENVAT on hold account, for use in the following
year.
CVD Clearing Account - Specifies which G/L account the
system credits when you take a CENVAT credit on countervailing duty in
the Incoming Excise Invoices transaction.
Exchange rate type - Key representing a type of exchange
rate in the system.
- You enter the exchange rate type to store different
exchange rates. Example - You can use the exchange rate type to define
a buying rate, selling rate, or average rate for translating foreign currency
amounts. You can use the average rate for the currency translation, and
the bank buying and selling rates for valuation of foreign currency amounts.
Exchange rate type to be used for Export excise duty converts
- When you are creating an Excise invoice for export sales then the exchange
rate for duty calculation will be picked up using this Exchange rate type.
Maintain Plant Settings - In this IMG activity, you maintain
excise information relating to your plants.
Plant Settings - In this activity, you maintain excise
information relating to your plants.
For each plant:
- Specify whether it is a manufacturing site or a depot.
- Assign it an excise registration ID. - You can assign
the same ID to more than one plant, if required.
Depot - Indicates that the plant in question is a depot.
- Depots are required to prepare register RG 23D, and follow different
procedures for goods receipt and invoice generation.
- Number of goods receipt per excise invoice.
- Multiple GR for one excise invoice, Single credit
- Multiple GR for one excise invoice, multiple credit
Maintain Excise Groups - In this IMG activity, you define
your excise groups. For each excise group, you can also control how various
excise invoice transactions will work.
Excise Groups - In this activity, you define excise groups.
An excise group allows you to maintain a separate set of excise registers
and excise accounts. The RG 23A, RG 23C and PLA serial numbers are created
for an excise group.
Recommendation - Under normal circumstances, excise authorities
require every business to maintain only one set of excise registers and
one set of accounts. But through exemption from the authorities,
multiple books can be maintained.
If your company has only one set of excise registers,
then you need to maintain only one excise group.
1. Create one excise group for each set of registers
that you need to keep.
2. Assign the excise groups to plants.
3. Maintain whether this Excise group is for a depot
or not.
If you receive only one consignment for an Excise challan
then you can leave GR's per EI as blank. If you receive multiple GR's for
a given Excise challan and would like to avail multiple credit mark the
GRs per EI as 'Multiple GR's for one excise invoice, multiple credit'.
Alternatively if you want to availa the credit only after all the goods
receipts have been made mark it as ' Multiple GR for one excise invoice,
single credit'.
4. If you want to automatically create Excise invoice
during Sales cycle at the time of billing the tick the indicator 'Create
EI'
5. During depot sales if you do not want to do RG23D
selection and posting separately and would like to complete RG23D selection
in one step mark the indicator 'RG23D Auto post'. This will post the selected
records into RG23D automatically. You cannot cancel the selection later.
6. If the indicator 'Default GR qty' is marked system
will default the Excise challan quantity on to the Goods receipt if the
Excise invoice number is given in the pop-up.
7. If the indicator 'Folio no create' is marked system
will generate Folio numbers for RG23D during receipt of excise invoice
into depot.
8. 'Automatic posting' when ticked will post the Excise
invoice other movements automatically along with creation in single step.
9. 'Create Part1 for Block Stock' when marked will create
a Part1 during the receipt of material into Blocked stock .
10. 'Create Part1 for STO' when marked will create a
Part1 during the receipt of material through inter plant transfers.
11. 'Create Part1 for consumption stock' when marked
will create a Part1 during the receipt of material into consumption stock.
Excise Group Governs which set of excise registers a business transaction
will be included in.
Following is the relation between excise group, plant
and registration. - In define excise groups in Customizing.
Then, in transactions involving excise duty, for example,
when you post a vendor's excise invoice, you specify which excise group
you are using. This information tells the system which G/L accounts to
post the excise to. At the end of the period, when you come to prepare
your excise registers, you create different sets for each excise group.
Indicates that the plant in question is a depot. - Depots
are required to prepare register RG 23D, and follow different procedures
for goods receipt and invoice generation.
- GR Per Excise Invoice
- Multiple GR for one excise invoice , Multiple credit
- Multiple GR for one excise invoice , Single Credit
Create Excise Invoice Automatically - Instructs the system
to automatically create a Sales and Distribution (SD) excise invoice immediately
you create a commercial invoice or a pro forma invoice.
The excise invoice is created in the background. - If
you want to make use of this function, you must also define the
default plant, excise group, and series groups
in Customizing for Sales and Distribution (SD), by choosing Excise Group
- Series Group Determination.
RG23D Sales Creation and posting option - RG23D Automatic
Option if selected will create Depot excise invoice by posting the
selection of excise invoices in single step. If this is not
selected then you need to separately do RG23D selection
followed by PGI and then RG23D verification and
posting. If you need automatic posting of RG23D selection then the
Post Goods Issue should have been completed before running RG23D selection.
Default excise qty in GR - If this indicator is ticked
then while doing Goods Receipt using 'MB01' system will default the excise
invoice quantity on to the Goods receipt document.
Folio number for depo Posting - If this indicator is marked
then while creating Excise invoice for other movements system automatically
does the Verify and Post. You need not separately Post the excise invoice
Also we can set indicator for creation of part 1 for:
- Blocked stock
- Stock transport order
- Consignment stock
Maintain Series Group - In this IMG activity, you define
the different excise series groups within your company. Series groups allow
you to maintain multiple number ranges for the outgoing excise documents.
Based on excise regulations and exemptions from the authorities you can
maintain multiple number series for outgoing documents. But each of these
series has to be declared to the excise authorities.
- Define excise series groups based on type of outgoing
document
- Assign series group to excise registration ID
- If no financial postings are required for an Excise
invoice in this seris group then you tick the 'No utilization' indicator.
- If the CENVAT has to be paid immediately and you need
not wait for the Fort nightly payment then mark the 'Immediate Utilization'
Iindicator. Example - You could define two series groups, group
001 for excise invoices, and group 002 for 57 F4 documents.
- No account postings for CENVAT in sales cycle
- No utilization Flag
If you do not need any CENVAT utilization for an excise
invoice but would like to just generate an excise invoice then you need
to mark this indicator.
If the flag is checked then system will create an Excise
invoice in the given Series group but there will not be any account postings
or Part2 postings.
Immediate Utilization of CENVAT - Specifies that when
you create an excise invoice, the system immediately pays the amount from
CENVAT and creates the Part II entry. Such invoices will not be listed
for fortnightly utilization.
If you have both fortnightly and immediate utilization
for the same excise group, the account determination within CIN IMG should
point to the ED interim account.
Account determination for immediate payment will be done
exactly the same as being done for fortnightly utilization program.
Maintain Excise Duty Indicators - In this IMG activity,
you maintain the excise duty indicators.
IMG > Logistics - General > Tax On Goods Movement > India
> Basic Settings > Determination of Excise Duty > Select Tax Calculation
Procedure
In this IMG activity, you specify which tax procedure
you want to use for determining excise duties and sales taxes on input
materials in India.
- If you use condition-based excise determination, use
a copy of the tax procedure TAXINN.
- If you use formula-based excise determination, use
a copy of the tax procedure TAXINJ.
This tax procedure also supports condition-based excise
determination, so that you can work with both concurrently.
We strongly recommend that new customers use condition-based
excise determination. Note that once you have started using a tax procedure,
you cannot switch to another one, otherwise you will not be able to display
old documents.
Maintain Excise Defaults - In this IMG activity, you define
which tax procedure and pricing condition types are used in calculating
excise taxes using formula-based excise determination.
If you use condition-based excise determination, fill
out the CVD cond. field and leave all the others blank.
If you use formula-based excise determination, fill out
all of the fields as follows:
- Enter the tax procedure and the pricing conditions
that are relevant for excise tax processing.
- Specify the purchasing and sales conditions types used
for basic excise duty, additional excise duty, special excise duty, and
cess.
- Specify the conditions in the sales order that are
used for excise rates.
- Specify the countervailing duty condition type used
for import purchase orders.
See also : SAP Library -> Logistics -> Country Versions
-> Asia-Pacific -> India -> Materials Management (MM) -> Condition-Based
Excise Determination and -> Formula-Based Excise Determination.
IMG > Logistics - General > Tax On Goods Movement > India
> Basic Settings > Determination of Excise Duty >
Condition-Based Excise Determination
When you enter a purchasing document, for example, a purchase
order, the R/3 System automatically calculates the applicable excise duties
using the condition technique.
Features : The standard system comes with two tax calculation
procedures. TAXINN is only supports condition-based excise determination,
whereas TAXINJ supports condition-based excise determination and formula-based
excise determination. Both tax procedures contain condition types
that cover all of the excise duties and sales taxes applicable.
Since the exact rates of excise duty can vary on a large
number of factors, such as which vendor you purchase a material from, or
which chapter ID the vendor stocks the material under, you create condition
records for every sort of excise duty.
When you come to enter a purchasing document, the system
applies the excise duty at the rates you have entered in the condition
records.
Customizing : Make the settings in Customizing Basic ->
India -> for Logistics – General, by choosing Taxes on Goods Movements
Account -> Excise Duties Using Condition Technique and …-> Settings Determination.
These activities include one activity where you define
a tax code for condition-based excise determination.
Master Data - Create condition records for all excise
duties that apply, and enter the tax code for condition-based excise determination
in each.
Day-to-Day Activities - When you enter a purchase
order or other purchasing document, enter the tax code for condition-based
excise determination in each line item. The system then calculates the
excise duties using the condition records you have created.
When the ordered materials arrive, you post the goods
receipt and the excise invoice. The system posts the excise duty to the
appropriate accounts for deductible input taxes when you enter the excise
invoice.
Creating Condition Records for Excise Duty
1. In the command field, enter FV11 and choose .
2. Enter the condition type that you want to create a
condition record for and choose .
The Key Combination dialog box appears.
3. Select the combination of objects that you want to
create the condition record for. On the dialog box, Control
Code means "chapter ID." So, for example, to create a condition record
for a tax that applies to a combination of country, plant, and chapter
ID, select Country/Plant/Control Code.
4. Choose .
5. Enter data as required. - In the Tax Code field,
enter the dummy tax code that you have defined.
6. Save the condition record.
Formula-Based Excise Determination - When
you execute a business transaction involving materials that are subject
to excise duty, the system automatically calculates the duty for you.
In order for the system to be able to determine which
rate of excise duty to apply, you must have maintained all the data on
the Excise Rate Maintenance screen, which you can Master Data®access
from the SAP Easy Access screen by choosing Indirect Taxes Excise Rate
Maintenance.
You maintain the following types of data:
- Plant master data
You assign each of your plants an excise duty indicator.
You can use the same indicator for all the plants with the same excise
status from a legal point of view, such as all those that are in an exempt
zone. See also the information about manufacturers that are only entitled
to deduct a certain portion of the duty (see Partial CENVAT Credit).
- Vendor master data
For each of your vendors with the same excise status
from a legal perspective, you define an excise duty indicator. You must
also specify the vendor type – for example, whether the vendor is a manufacturer,
a depot, or a first-stage dealer. You must also stipulate if the vendor
qualifies as a small-scale industry. For each permutation of plant
indicator and vendor indicator, you then create a final excise duty indicator.
- Customer master data
Similarly, you assign the same excise duty indicator
to each of your customers that share the same legal excise status.
Again, for each permutation of plant indicator and customer
indicator, you then create a final excise duty indicator.
- Material master data
Each material is assigned a chapter ID.
- Excise tax rate
For every chapter ID and final excise duty indicator,
you maintain the rate of excise duty.
If your business only qualifies for partial CENVAT credit,
you must customize your system accordingly.
Let us consider an example to illustrate how the system
determines which rate of excise duty to apply to a material. Assume you
are posting a sale of ball bearings to a customer. The system automatically
determines the rate of excise duty as follows:
1. Looks up the customer master data to see what status
you have assigned the customer.
Let's assume you've assigned the customer status 3.
2. Looks up the plant master data to see what status
you have assigned the plant. Similarly, your plant has status 2.
3. The system looks up the table under Excise Indicator
for Plant and Customer to see what the final excise duty indicator is for
customer status 3 and plant status 2: It is 7.
4. The system determines the chapter ID of the ball bearing
for the plant.
Let’s assume the chapter ID at plant for the ball bearings
is 1000.01.
5. Finally, the system looks up the table under Excise
Tax Rate to see what rate of duty applies to chapter ID 1000.01 under
status 7.
Define Tax Code for Purchasing Documents - In this
IMG activity, you define a tax code for the purposes of calculating excise
duty when you enter purchasing documents. Only carry out this activity
if you use condition-based excise
determination.
- Create a new tax code, and set the tax code type to
V (input tax). Do not make any other settings for it.
- Assign Tax Code to Company Codes
In this IMG activity, assign the tax code for purchasing
documents to the company codes where it will be used.
Only carry out this activity if you use condition-based
excise determination.
Classify Condition Types - In this IMG activity, you specify
which condition types you use for which sort of tax. Note that this only
applies to condition types that you use with the new excise determination
method. The system uses this information when you create a document from
another one. For example, when you enter an incoming excise invoice from
a
purchase order, or when you create an outgoing
excise invoice from a sales order, the system determines the various excise
duties in the excise invoice using the information that you have entered
here. In addition, when you create a purchasing document, the system only
uses the condition types that you enter here.
- For taxes on purchases, use the condition types contained
in the tax procedure.
- For taxes on sales, use the condition types contained
in the pricing procedures.
The standard system comes with sample settings for the
tax calculation procedures and pricing procedures.
Use these settings as a basis for your own.
IMG > Logistics - General > Tax On Goods Movement > India
> Account Determination
Define G/L Accounts for Taxes - In this IMG activity,
you specify which G/L accounts you will use to record which taxes.
Requirements - You have set up G/L accounts for each
of the processing keys listed below.
- Assign an account to each of the following posting
keys. The accounts for VS1, VS2, and VS3 are used as clearing accounts
during excise invoice verification.
- VS1 (basic excise duty)
- VS2 (additional excise duty)
- VS3 (special excise duty)
- VS5 (sales tax setoff)
- MWS (central sales tax)
- MW3 (local sales tax)
- ESA (service tax)
- ESE (service tax expense)
Specify Excise Accounts per Excise Transaction - In this
IMG activity, you specify which excise accounts (for excise
duty and CENVAT) are to be posted to for the various
transaction types. Enter all the accounts that are affected by each
transaction type. If you use sub transaction types, enter the accounts
for each sub transaction type as well.
Transaction type UTLZ is used for determining accounts
only while posting excise JVs and also if the payment of excise duty has
to be done fortnightly. The fortnightly CENVAT payment utility picks
up the credit side accounts from the transaction types of GRPO, EWPO, and
TR6C for determining the CENVAT and PLA accounts. There is no separate
transaction type for fortnightly payment.
Example:
- Excise TT DC ind Account name
- GRPO CR CENVAT clearing account
- GRPO CR RG 23 BED account
- GRPO DR CENVAT on hld account
Specify G/L Accounts per Excise Transaction - In this
IMG activity, you assign the excise and CENVAT accounts to G/L
accounts. When you come to execute the various
transactions, the system determines which G/L accounts to post to by looking
at the:
- Excise group
- Company code
- Chart of accounts
Furthermore, if you want separate account determination
settings within an excise group, you can also use sub transaction types.
Requirements
You have already:
- Defined the G/L accounts
- Defined the excise groups
- Maintained the transaction accounts
Activities - For each excise group, assign the excise
and CENVAT accounts to G/L accounts. For most businesses, one set of accounts
will suffice for all transactions.
Note : you need not remit the CENVAT to the excise department
immediately, so maintain the credit account for transaction type DLFC as
an excise duty interim account. This will be set off when you remit the
duty. Config setting needed to be done in order to get the Excise
Details Screen in Material Master.
Even though this functionality is available in enterprise
version, a small configuration step has to be made in Screen Sequences
for Material Master.
Following document helps you to do this configuration.
- Material Master à Logistics General
1. Go to IMG Define Structure of Data Screen for each
Configuring the Material master Screen Sequence.
2. Select your screen sequence. Usually it would be 21.
Select the same and click on Data Screen in the left frame.
3. Once the data screens are exhibited, select data screen
no. 15, ie. SSq. 21and Scrn 15, which is “Foreign Trade: Import Data”.
Select the same and click on Sub screens in the left frame.
4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1-
0001 and select the same. Click on tab view sub screen and ensure that
the sub screen is blank.
5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1
– 0001 and instead add SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.
6. Save the setting.
7. Create a Material Master and check whether in Screen
Foreign Trade
– Import, Excise related sub screen appears.
Get help for your SAP SD problems
Do you have a
SAP SD Question?
SAP SD Books
SAP Sales
and Distribution Certification, Interview Questions and Configuration Reference
Books
SAP SD Tips
SAP SD Discussion
Forum and Sales/Distribution Tips
Best regards,
SAP Basis, ABAP Programming and Other IMG Stuff
http://www.erpgreat.com
All the site contents are Copyright © www.erpgreat.com
and the content authors. All rights reserved.
All product names are trademarks of their respective
companies. The site www.erpgreat.com is in no way affiliated with
SAP AG.
Every effort is made to ensure the content integrity.
Information used on this site is at your own risk.
The content on this site may not be reproduced
or redistributed without the express written permission of
www.erpgreat.com or the content authors.
|