Cin Customizing

SAP AG
Country Version India
SAP AG

Release 2.2B
Documentation
Jun 22, 1999.
Material number: 51006682
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SAP AG
Copyright
Copyright 1997 SAP AG. All rights reserved

Neither this document nor any part of it may be copied or reproduced
in any form or by any means, or translated into another language,
without the prior consent of SAP AG.
SAP AG makes no warranties or representations with respect to the
content hereof and specifically disclaims any implied warranties of
merchantability or fitness for any particular purpose. SAP AG assumes
no responsibility for any errors that may appear in this document. The
information contained in this document is subject to change without
notice. SAP AG reserves the right to make any such changes without
obligation to notify any person of such revision or changes. SAP AG
makes no commitment to keep the information contained herein up to
date.
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Contents
1
INTRODUCTION............................................................................................................... 6
INITIAL STEPS.................................................................................................................. 7
2.1
2.2
2.2.1
2.2.2
2.2.3
2.2.4
2.3
2.3.1
2.4
3
Country Install Program.................................................................................................. 7

FI Interface..................................................................................................................... 7
Table TRWCI (FI Interface: Components Installed)................................................7
Table TRWCA (FI Interface: Active Components)...................................................7
Table TRWPR (FI Interface: Processes)................................................................7
Open FI Interface.................................................................................................... 8
Tax code Activation......................................................................................................... 8
Account Assignment............................................................................................... 8
Authorizations................................................................................................................ 9
CUSTOMIZING................................................................................................................ 10
3.1
Customizing Using Localization IMG............................................................................10
3.1.1
Maintain Company Settings..................................................................................10
3.1.2
Maintain Excise Registration.................................................................................10
3.1.3
Maintain Plant Settings......................................................................................... 10
3.1.4
Assign Excise Registration Group to Plant...........................................................10
3.1.5
Assign Excise Series Group to Registration.........................................................10
3.1.6
Define Excise Tax Condition Type........................................................................10
3.1.7
Maintain Transaction Accounts.............................................................................10
3.1.8
Assign GL Accounts to Transaction Types and Excise Group...............................10
3.1.9
Alternate Sub-transaction Accounts......................................................................11
3.1.10
Maintain Minimum Balance...................................................................................11
3.1.11
Determine movement types relevant for excise....................................................11
3.1.12
Assign Excise Invoice Billing Type to Delivery Type..............................................11
3.1.13
Define Tax Applicability Code................................................................................11
3.1.14
Define Form Types................................................................................................ 11
3.1.15
TDS-Section Tax Code Reference........................................................................12
3.1.16
TDS Section Maintenance....................................................................................12
3.1.17
TDS Payment due date maintenance...................................................................12
3.1.18
Define Text Objects...............................................................................................12
3.1.19
Maintain Number Range.......................................................................................12
3.1.20
Maintain Sap-script layouts...................................................................................13
3.1.21
Message type configuration..................................................................................13
3.2
Customizing Using Standard IMG................................................................................14
3.2.1
Accounting............................................................................................................ 14
3.2.2
Sales And Distribution........................................................................................... 15
3.3
CIN - Health Check...................................................................................................... 19
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
EXCISE TAX RATE MAINTENANCE..............................................................................20

Maintenance of Chapter Id........................................................................................... 20
Combination of Material Number and Chapter Id.........................................................20
Assessable Value for Excise Calculation......................................................................20
Modvat Determination.................................................................................................. 20
Vendor Excise Details.................................................................................................. 20
Customer Excise Details.............................................................................................. 21
SSI Concessional Rates............................................................................................... 21
Company and Plant Excise Additional Data.................................................................21
Excise Indicator for Plant and Vendor..........................................................................21
Excise Indicator for Plant and Customer......................................................................21
Excise Tax Rate Maintenance......................................................................................21
Additional Excise Rate................................................................................................. 22
Exceptional Material Excise Rate.................................................................................22
Sales Tax Setoff Percentages......................................................................................22
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EXCISE TAX PROCESSING........................................................................................... 23
5.1
Purchasing................................................................................................................... 23
5.1.1
Process Overview................................................................................................. 23
5.1.2
Purchasing With One-Step Goods Receipt...........................................................23
5.1.3
Purchasing With Two-Step Goods Receipt...........................................................26
5.1.4
Purchasing imports............................................................................................... 27
5.1.5
MODVAT credit without reference........................................................................29
5.1.6
Partial MODVAT credit..........................................................................................30
5.1.7
Multiple GR to single Excise invoice.....................................................................31
5.2
Capital Goods............................................................................................................... 31
5.2.1
5.2.2
Alternate Process Overview..................................................................................36
5.3
Subcontracting............................................................................................................. 39
5.3.1
Material Declaration..............................................................................................39
5.3.2
Rate Determination...............................................................................................39
5.3.3
5.3.4
Workflow............................................................................................................... 39
5.4
Sales and Distribution.................................................................................................. 42
5.4.1
Sales from Factory................................................................................................ 42
5.4.2
Modvat Utilization in Batch....................................................................................45
5.4.3
Sales with Exemption Form..................................................................................45
5.4.4
Free Samples....................................................................................................... 46
5.4.5
Export Sales......................................................................................................... 47
5.4.6
Sales to 100% EOU.............................................................................................. 48
5.4.7
Sales From Depot................................................................................................. 49
5.4.8
Excise Invoice for Other Outward Movements......................................................54
5.4.9
Sales Excise Invoice Printing................................................................................55
5.4.10
MODVAT Forecasting.......................................................................................... 55
5.5
MODVAT Adjustments.................................................................................................. 56
5.5.1
5.5.2
Adjustment Scenarios...........................................................................................57
6
EXCISE AND SALES TAX REPORTING........................................................................61

6.1.1
6.1.2
6.1.3
FORMS CAPTURE.......................................................................................................... 64
7.1
7.2
7.3
7.4
8
Sales Tax Register................................................................................................61

RG1 Data Extract.................................................................................................. 61
Download.............................................................................................................. 63
Process Overview........................................................................................................ 64
Forms Capture for a Sales Order.................................................................................64
Forms Capture for a Purchase Order...........................................................................64
Forms Capture for a Reference Document..................................................................64
TAX DEDUCTED AT SOURCE (TDS).............................................................................65
8.1
8.1.1
8.1.2
8.1.3
8.1.4
8.1.5
8.1.6
8.1.7
8.1.8
8.1.9
8.2
8.3
8.4
8.5
8.6
8.6.1
Customizing................................................................................................................. 65
Additional Company Details..................................................................................65
Vendor Information...............................................................................................66
Withholding Tax Code...........................................................................................66
Automatic Posting................................................................................................. 66
Withholding Tax Section Maintenance..................................................................67
Withholding Tax Code/Section..............................................................................67
Certificate Number Range....................................................................................67
Recipient type....................................................................................................... 68
Withholding tax payment due................................................................................68
Work Flow.................................................................................................................... 68
Challan updation.......................................................................................................... 69
TDS Certificates........................................................................................................... 70
TDS Certificate dispatch details................................................................................71
TDS Annual Returns..................................................................................................... 71
Annual returns for Section 194C...........................................................................71
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8.6.2
8.6.3
8.6.4
8.6.5
9
SERVICE TAX................................................................................................................. 73
9.1
9.1.1
9.1.2
9.2
9.3
9.4
10
Annual returns for Section 194A...........................................................................71

Annual returns for Section 194D...........................................................................71
Annual returns for Section 194I............................................................................71
Annual returns for Section 194J............................................................................72
Customizing................................................................................................................. 73
Service Tax Code.................................................................................................. 73
Accounts............................................................................................................... 73
Work Flow.................................................................................................................... 74
Challan updation.......................................................................................................... 75
Service Tax returns....................................................................................................... 75
ARCHIVING OF TAX DEDUCTION AT SOURCE (TDS)................................................76
10.1
Archive TDS documents............................................................................................... 76
10.1.1
Archive.................................................................................................................. 76
10.1.2
Delete................................................................................................................... 76
10.1.3
Reload.................................................................................................................. 76
10.1.4
Analyze................................................................................................................. 76
10.2
View Archived Documents............................................................................................ 76
11
11.1
11.2
11.3
12
12.1
12.2
12.3
12.4
12.5
13
EXCISE REGISTER REPORTING..................................................................................77

Extraction..................................................................................................................... 77
Printing......................................................................................................................... 77
Re-extraction facility..................................................................................................... 77
CIN 2.2B RELEASE NOTES........................................................................................... 78
MM............................................................................................................................... 78
SD................................................................................................................................ 79
FI.................................................................................................................................. 80
Reporting...................................................................................................................... 80
Others.......................................................................................................................... 81
APPENDICES................................................................................................................. 83
Appendix A.
Appendix B.
Appendix C.
Appendix D.
Appendix E.
Appendix F.
Appendix G.
Appendix H.
Appendix I.
Appendix J.
Accounting Entries......................................................................................... 83
Down load structures.....................................................................................85
Checklist........................................................................................................ 89
Taxes.............................................................................................................. 90
Pricing Conditions.......................................................................................... 91
Formulae........................................................................................................... 92
Authorization Objects.....................................................................................93
Number Range Objects..................................................................................94
Text Objects....................................................................................................... 95
User Exits.......................................................................................................... 96
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Introduction
This document describes the functionality delivered by Country Version India (CIN).
The documentation focuses on four important topics, namely
(1)
(2)
(3)
(4)
which initial steps are required to enable localized functionality,

which customizing options are available to control localized functionality,
which master data is relevant for localized functionality,
How to use localized functionality from a work flow perspective.
The reader of this document should be familiar with functionality that is available in standard R/3.
For more information on specific standard functionality please refer to the R/3 documentation.
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The Country Install Program is used to adapt the settings for company code 0001 (which
is delivered with German settings) to the Indian environment. If you are installing CIN into
an already customized client, you do not need to run the Country Install Program anymore.
The availability of functionality delivered through CIN does not depend on whether you run
the Country Install Program or not.
Initial Steps
There are several steps that need to be taken to activate localized functionality in the R/3 system.
Some of the are mandatory, others depend on the status of your system at the time of installing
Country Version India.
2.1
Country Install Program
Transaction: O035
Menu Path: Tools - Business Engineering - Customizing - Basic Functions - Set up clients - Change
country specific settings - Country version
The country installation is carried out for country IN. Ignore the following error appearing
during the country installation: Depreciation chart missing cannot be converted.
2.2
FI Interface
The following entries are required in the tables TRWPR, TRWCI and TRWCA to activate some of
the CIN functionality:
Path: System Services Table Maintenance
2.2.1
Table TRWCI (FI Interface: Components Installed)
Component: ZIND
2.2.2
Table TRWCA (FI Interface: Active Components)
Component: ZIND
To year: 2999
Active: X
2.2.3
Table TRWPR (FI Interface: Processes)
Trans.
Time
Seq. Nr. Component Doc.
Document Close
910
ZIND
J_1I6_COPY_TO_LOCAL
Document Post
910
ZIND
J_1I6_CHECK_GR_AGAINST_EXC_INV
Beleg
Close
920 ZIND
J_1I2_COPY_TO_LOCAL
Beleg
Post
920 ZIND
J_1ITDS_TABLE_UPDATE
Document Close
ZIND
J_1I6_UPDATE_BA Sequence number for this
entry has to be before the sequence number of FI_DOCUMENT_CLOSE
Fill the sequence number and leave the Doc field blank. If sequence number is left blank then these
functions will not get triggered.
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In case you are using specific tax codes, then the excise duty conditions within the tax
codes needs to be set to 100%.
You need to have separate sets of tax code for raw-materials with partial modvat-credit
and capital goods with 100% modvat credit
1.1.1
2.2.4
Open FI Interface
Transaction FIBF
Settings - > Identification -> Partners
Verify that entry INDIA is available and is marked Active
Settings -> Products -> of a partner - > Edit
Verify the product TS is available for INDIA.
Settings -> Products -> of a partner -> activate
Verify the product TS is available for INDIA
Settings -> P/S function modules -> of a partner
Event
00001030
00001110
2.3
Function module
J_1I6_SERVICE_TAX_UPDATE
J_1ITDS_SAVE_CHANGES
Tax code Activation
The tax codes for input tax V1 and output tax V4, V5, V6 and V8 are delivered with CIN. The tax
code entries need to be activated according to the tax code settings Section 3.2.1.2.
2.3.1
Account Assignment
The account assignment needs to be done for the account keys specified in the tax procedure using
Path IMG - > Financial Accounting - > Financial Accounting Global
Sales/purchase - > Posting - > Define tax accounts
Maintain the GL accounts for the posting keys
VS1 for BED
VS2 for AED
VS3 for SED
VS5 for sales tax setoff
MWS for CST output
MW3 for LST output
ESA for Service tax
ESE for Service tax expense
settings - > Tax on
Verify that the tax processing key VS1, VS2 , VS3 and VS5 are deductible.
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2.4
There is a sample profile j_1I_prof that includes all authorizations needed to execute the
transactions delivered by CIN.
Authorizations
Authorization objects are available to control all transactions delivered through CIN. All users who
need to access these transactions should have the necessary authorization profile attached to their
user master.
1) Maintain Authorization
Path: Tools - > Administration - > Maintain Users - > Authorizations
India Version authorization object class
All the authorization objects get listed. You need to select each one of the objects and Create
authorization based on the company requirements. Once the value set is assigned the
authorization has to be activated.
2) Maintain Profile
Path: Tools - > Administration - > Maintain Users - > Profiles
Enter a profile name and choose CREATE
Choose INSERT AUTHORIZATION to add necessary authorization to the profile, you can select
from a list of available active authorizations.
ACTIVATE the profile
3) Maintain Users
Add the profile to the user master.
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Customizing
3.1
Customizing Using Localization IMG
CIN includes the Localization IMG that allows you to define many organizational settings and
process parameters that impact the localized functionality.
Path: India Localization Customizing - India Localization (J1IT)
3.1.1
Maintain Company Settings
The company-specific customization settings for excise tax processing are maintained here.
3.1.2
Maintain Excise Registration
In this step you define the excise registration for your company. A registration is a legal entity
identified by excise authorities for declarations. One registration will have a unique excise
registration number and ECC number under an excise range division and Collectorate.
You can specify whether additional excise duty, special excise duty or CESS is applicable for the
registration. If it is set as not applicable these fields will not be displayed in the transactions.
Specify the maximum number of items to be printed on the excise invoice. This setting will be used
to control the split of excise invoices. If your excise registration allows partial credit of MODVAT the
same has to be indicated here.
3.1.3
Maintain Plant Settings
You need to specify whether the plant is a manufacturing location or a depot. Also at the plant level
you need to specify whether multiple GRs are allowed for a single excise invoice and also whether
multiple credit is allowed.
3.1.4
Assign Excise Registration Group to Plant
An excise group allows you to maintain a separate set of excise registers and excise accounts.
The RG23A, RG23C and PLA serial numbers are created for an excise group.
3.1.5
Assign Excise Series Group to Registration
You can define different excise series groups within your company. The series groups allow you
to maintain multiple number ranges for the outgoing excise documents.
3.1.6
Define Excise Tax Condition Type
You need to identify the tax procedure and pricing condition types used in calculating excise
taxes. Specify the purchasing and sales condition types that represent Basic Excise (BED),
Additional Excise (AED), Special Excise (SED), and CESS. Also you need to specify the
conditions in Sales order which hold the excise rates and the CVD condition type used for import
purchase orders.
3.1.7
Maintain Transaction Accounts
Using this step we can link the transaction types to the excise and Modvat accounts. Maintain all
the accounts that need to be debited and credited for a transaction type.
3.1.8
Assign GL Accounts to Transaction Types and Excise Group
Using this step you link the excise and Modvat accounts to the actual GL accounts. You can
define a separate set of GL accounts for each excise group. An additional provision is made to
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Formoption
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1.1.3
1.1.2
1.1.4
1.1.5
define the accounts for each excise transaction. Under normal circumstances you will need only
one set of accounts within the excise group for all transactions.
3.1.9
Alternate Sub-transaction Accounts
A new field Sub Transaction type is introduced in the other movements transaction and it is
validated with the data available in this table. Using this step you can define an alternate Debit
account for the account postings made through the other movements transactions.
At present users can maintain only OTHR in the transaction type field and any other value does
not have any significance ( Option available only in other movements transaction to enter the sub
transaction type field )
3.1.10 Maintain Minimum Balance

You can maintain minimum balances in your excise accounts using this option. A minimum
balance could be maintained separately for each excise group.
3.1.11 Determine movement types relevant for excise

The pop-up for entering the excise invoice details will appear during goods receipt only for the
movement types defined here.
3.1.12 Assign Excise Invoice Billing Type to Delivery Type

The excise invoice can be created in combination with the customer invoice or separately (using
a Proforma-type invoice). These options are represented in the system by different document
types and document flows. You need to identify the billing document types that will be used as
reference for Modvat utilization and assign them to the respective delivery document types.
Based on the assignment the system will also carry out consistency checks and validations.
3.1.13 Define Tax Applicability Code

Maintain this tax applicability code in case you need to override the sales tax applicability at the
transaction level.
3.1.14 Define Form Types

Enter the different form types that you want to capture in the system.
3.1.15 TDS-Section Tax Code Reference

The tax codes need to be assigned to the TDS sections, this is done using this transactions. This
is used for subsequent reporting purposes.
Also with in a section if there is a split for sub-categories maintain the same. E.g Under section
194C contracts , sub-contracts and advertising contracts
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The text id DNLD supplied with the setup should not be deleted. The text added to this id
will be used for Download of registers.
The text id PROC has been pre-defined for the nature of processing in 57F4. Enter the
nature of processing in this text-id. This will also get downloaded.
3.1.16 TDS Section Maintenance

The various TDS sections ( e.g.: 194 C) needs to be defined in the master tables. The certificates
can be maintained centrally or business area-wise. If maintained centrally then entries similar to
entries 1 & 4 can be maintained. Maintain whether surcharge is applicable for this section and
also the surcharge rate.
For business area-wise maintenance the TDS sect. column section can be have entries with
Section + Business area. e.g. for business area 0001 to maintain entry for section 194C you can
make an entry similar to one shown as the 2nd or 3rd entry. By entering unique NR Int values you
can get unique no range for each business area.
3.1.17 TDS Payment due date maintenance

For a given section and vendor recipient, maintain when the TDS is due for payment to
Government. If the amount is payable on 7th of the following month then maintain 777. In all
other cases maintain the number of days after which it is due.
3.1.18 Define Text Objects

You can maintain the text ids for any of the India Localization transactions using this option. The
text objects for each transaction is predefined. ( see Appendix J for a list of text objects )
3.1.19 Maintain Number Range

The series group and the excise group need to be set for the excise registration. In case there is
no requirement for multiple accounts, registers or number series then at least a default entry need
to be present.
The number range objects are:
J_1I57FC
J_1IEXCEXP
J_1IEXCLOC
J_1IINTNUM
J_1IPLA2
J_1IRG23A1
J_1IRG23A2
J_1IRG23C1
J_1IRG23C2
J_1IRG1
J_1ITDSNO
J_1IRG23D
57FC number range object

(Series group)
Export excise invoice number range (Series group)
Local excise invoice number range
(Series group)
Internally document number to be generated
PLA part II number range object
(Excise group)
RG23A part 1 no. range object
(Excise group)
RG23A part II number range object (Excise group)
RG23C part I number range object
(Excise group)
RG23C part II number range object (Excise group)
RG1 number range object
(Excise group)
No range for TDS certificate
(TDS section )
RG23D serial number
(Excise group)
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Maintain the number ranges for all the above objects with the number range number as
01.
3.1.20 Maintain Sap-script layouts

Path : J1IT Reports Maintain SAP Script Layouts
CC
Register
Name
RG23A1
RG23C1
RG23A2
RG23C2
PLA
RG23D
RG1
RT12
RT12
RT12
L No.
Layout Set
LD
1
1
1
1
1
1
1
1
2
3
J_2IRG23A_PART1
J_2IRG23C_PART1
J_2IRG23A_PART2
J_2IRG23C_PART2
J_2I_PLA
J_2IRG23D
J_2I_RG1
J_2I_RT12_ABSTRA
J_2I_RT12_DETLS
J_2I_RT12_3
Layout Program
No. of
Copies
Output
Device
J_2IRAP1
J_2IRCP1
J_2IRAP2
J_2IRCP2
J_2IPLA
J_2IRG23
J_2IRRG1
J_2IRT12
J_2IRT12
J_2IRT12
Note : CC : Company Code

LD : Layout description
Only these registers are supported. You may not change the Register name. You can
have your own layouts and maintain the name here. If the output device and no-of copies
are maintained it is automatically picked up for printing.
3.1.21 Message type configuration

For a selected section of messages, for a user you can maintain whether the message should be
a warning or error. If an entry is maintained without a user then the setting will apply to all users.
Currently only a few messages are configurable. See Appendix for details
3.2
Customizing Using Standard IMG
3.2.1
Accounting
Excise and Sales tax calculation has been done through the standard SAP feature of Tax on
sales and purchase in the Financial accounting. Taxation is done based on tax jurisdictions
defined for the company.
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Account assignment has to be done for the deductible input tax and non-deductible output
tax account keys mentioned in the tax procedure TAXINJ.
3.2.1.1 Tax procedure

The tax procedure TAXINJ has been defined for India. This tax procedure includes the tax
conditions for both purchasing and sales. The conditions include Basic Excise duty, Additional
Excise duty, Special Excise duty, CESS , Central Sales tax and Local Sales tax. For Excise
components on purchasing we have two elements to determine whether the excise component
has to be added to inventory or is available for setoff. The decision as to whether to add excise
value to inventory or to keep it for setoff is made based on whether for the material input-output
declaration has been made. For sales tax on input we have the option of defining setoff in which
case the sales tax setoff is accounted separately and will not be added to the inventory value.
The excise calculation formula 352 attached to the calculated call in TAXINJ calculates the
excise duty based on the tariff rates applicable for the material and vendor/customer combination.
Tax jurisdictions has been defined for the tax procedure TAXINJ in such a way that the first two
bytes of jurisdiction is common for all regions and the next two bytes vary depending on the
region.
Path: IMG - > Financial Accounting - > Financial Accounting Global settings - > Tax on
Sales/purchases - > Posting - > Define Tax accounts
After creating the tax codes on A/R side you need to mark the A/R excise duty conditions
as statistical in TAXINJ.
3.2.1.1.1 Tax codes

Transaction: FTXP
Path: IMG - > Financial Accounting - > Financial Accounting Global settings - > Tax on
Sales/purchases - > Calculation - > Define Taxes on sales/purchases codes
3.2.1.1.2 Input tax V1
This tax code can be used for purchasing cycle. Excise duty percentages and sales tax
and setoff percentage rates are maintained at different jurisdiction levels.
3.2.1.1.3 Service tax SV
This tax code is used for booking the service tax in the accounts payables. The service tax
percentage has to be maintained for a federal jurisdiction.
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3.2.1.1.4 Output tax V4
Only the A/R Excise duty conditions are activated and percentages have to be set to 100%
. This tax code should be used for stock transfer.
This tax code has to be used if different jurisdictions are maintained for Central Sales tax
and Local Sales tax. This tax code is for Central sales tax. The Central sales tax
percentage is maintained for the tax code at jurisdiction IN00.
This tax code has to be used if different jurisdictions are maintained for Central Sales tax
and Local Sales tax. This tax code is for Local sales tax. The Local sales tax percentage is
maintained for the tax code at state jurisdiction IN01. There can be different Local sales
tax rates for different tax jurisdictions. The excise duty conditions are maintained at 100%.
3.2.2
This tax code has to be used when there is only one jurisdiction for defining both Central
sales tax and local sales tax rates. Both the rates are maintained at level IN00. The
decision as to whether to pickup the Local or Central sales tax is determined by the
requirement formula attached to the LST and CST conditions in the TAXINJ procedure.
Sales And Distribution
3.2.2.1 Pricing
3.2.2.1.1 Factory Sales Pricing Procedure - JFACT
This is a template of pricing procedure for Sales from Factory. JMAN is a manual condition for
Excise. When manual override is required for the calculated excise value it could be given for the
condition JMAN. The condition value formula 355 checks and copies this on to the Basic Excise
duty value. UTXJ is the condition in JFACT which triggers the calculated call of tax procedure
TAXINJ. Condition records need to be maintained for UTXJ with the appropriate tax code. Access
sequence JIND has been assigned to the condition UTXJ. Base value for calculation of excise
derived from the condition base value formula 351. This ensures that if an assessable value is
maintained for the material through Excise rate maintenance (J1ID) then that will be used as
basis for excise calculation. In the absence of an assessable value the selling price will be used
for excise calculation.
JMOD is a FI Tax condition which gets the Basic Excise duty from calculation formula 352. JEX2
is a copy of JMOD and is a Sales pricing condition. The value of JEX2 gets posted for Excise
account key. This ensures that the cost accounting of excise value paid is done correctly. In cases
where commercial invoice is created after utilization the condition value formula 353 ensures that
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SAP AG
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gets the Additional Excise duty from calculation formula 352. JEXA is a copy of JAED and is a
Sales pricing condition. The accounting is done for the value of JEXA. JSED is a FI Tax condition
which gets the Special Excise duty from calculation formula 352. JEXS is a copy of JSED and is a
Sales pricing condition. The accounting is done for the value of JEXS. JCES is a FI Tax condition
which gets the CESS from calculation formula 352. JCED is a copy of JCES and is a Sales
pricing condition. The accounting is done for the value of JCED.
Sales Tax - Identification of Central or Local Sales tax.
Both CST and LST rates are maintained in one tax code in the same jurisdiction. (Refer Tax code
V8 ). The rates are maintained at the tax code level. But then requirement formulae are attached
to the LST and CST tax conditions in the tax procedure. The requirement formula 351 decides
whether CST is applicable based on the Region of the ship-to party and the region of the
delivering plant being different. The requirement formula 352 decides whether LST is applicable
based on Region of the ship-to party and the region of the delivering plant being same.
LST and CST rates are maintained in different tax codes at different jurisdiction. ( Refer tax code
V5 and V6 ) Default access sequences decide the applicability of Local or Central sales tax.
Over and above this as a part of CIN Sales tax applicability field is defined at the Header
business data - screen. You can enter codes which you set in the system already.
The Sales tax applicability codes are maintained in India IMG
Path: India Localization - > Customization - > Sales and Distribution - > Define tax applicability
codes
Access condition table 352 has been setup to use this additional field for pricing access. This
could be included in the access sequence of UTXJ.
3.2.2.1.2 Export Sales Pricing Procedure - JEXPOR

There is no Excise condition in the Exports pricing. But excise can be calculated at MODVAT
utilization.
3.2.2.1.3 Stock Transfer Pricing Procedure - JSTKTR
Stock transfer pricing has only excise conditions as it is used only for the calculation of excise value.
3.2.2.1.4 Depot Pricing Procedure - JDEPOT
Depot pricing procedure is exactly similar to the Factory pricing procedure with the exception that
the condition value formula attached to the excise condition is 356. This ensures that the excise
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Standard Billing type F2 is configured to do a new pricing with pricing type E. In case this
also needs reflect the Sales order price the pricing type has to be changed.
value from the referred excise invoices for the delivery is picked up and used by the commercial
invoice.
3.2.2.1.5 Import pricing procedure J_IMP
A sample pricing procedure is provided for import purchases on which the customs duties are
configured as delivery charges with accruals.
3.2.2.2 Document Flow

3.2.2.2.1 Delivery type
A new delivery type JF has been created for CIN.
Path IMG - > Sales and distribution - > Shipping - > Deliveries - > Define Delivery types
This is a copy of the standard delivery type LF.
When you need to have separate Excise invoice and then later a commercial invoice; the delivery
needs to be made using the delivery type JF. This ensures that all validations for ensuring the
document flow is complete. The copy control from order to this delivery type has been setup
using IMG - > Sales and distribution - > Shipping - > Deliveries - > Specify copy control for
Deliveries
3.2.2.2.2 Billing Type
A new billing type JEX has been created for CIN.
Path IMG - > Sales and Distribution - > Billing - > Billing documents - > Define Billing Types
This is a copy of the standard Billing type F8.
When you need the Excise invoice and Commercial Invoice to be different then you need to
create the Excise Invoice reference document using the Billing type JEX. The pricing type E has
been attached to the Excise Proforma document which ensures that the sales order prices are
copied to the Proforma Excise invoice.
3.2.2.2.3 Copy control Delivery to Billing

Path IMG - > Sales and Distribution - > Billing - > Billing documents - > Maintain copying control
for Billing documents
Copy control has been defined in CIN for Delivery using Proforma Excise document.
Option 1 When the Excise invoice and Commercial invoice are the same, the copy control path is
OR - > LF - > F2 which is a standard functionality.
Option 2 When the Excise invoice and Commercial invoice are different then the copy control
path is
OR - > JF - > JEX - F2. This is delivered as a part of CIN.
Copy control formula 310 is attached to the copying from JF to JEX at item level. This ensures
that the user does not create a commercial invoice before creating the excise invoice while he is
using Option 2. Copy control formula 311 is attached to the copying from JF to JEX at Header
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The Excise invoice split formula 351 takes the number of items in one Excise invoice from
the customization setting in India Localization - > Customization - > Global settings - >
Maintain company settings. In addition to this if the chapter-id of the items in the document
are different then a new Excise invoice gets created. In case you need to change these
criteria or add some more the formulae can be enhanced and attached to the reference
document.
1.1.5.1
level. This ensures that the excise reference document is not created again for the same delivery.
Data transfer formula 351 is attached to the copy control of JF to JEX at item level. This ensures
splitting of the Excise invoice based on number of items in the delivery and the chapter-id of the
items.
3.2.2.3 Output Determination

A new output type J1I0 has been defined for CIN for printing Excise invoices.
Path: IMG -> Sales and Distribution - > Basic functions - > Output - > Output determination - >
Output proposal using condition technique - > Maintain output determination for billing
documents
The sample layout set used is J_1I_EXC_INVOICE and the driving program is J_1IEXCP. This
output type is assigned to the partner function Bill-to party. The output type J1I0 is included in the
output determination procedure V10000 and this in turn is linked to the Excise reference
document type.
3.3
You need maintain the condition records for the output using Logistics -> Sales and
Distribution - > Master data - > Output - > Billing document - > create
CIN - Health Check
This list program reads the CIN and R/3 customizing settings and generates a list with all the
entries that are required for proper functioning of CIN. This list will be used by the functional
consultants after finishing the customizing and before starting the testing.
Transaction: J1I0
Path: J1IL -> Customization -> CIN Health Check
(Alternatively use SE38 -> J_1ICWIZ -> Execute)
The icons in the list indicate the correctness of the customizing settings. When you
execute the program GOTO Help Extended Help in the selection screen for
detailed help.
Important :
Disclaimer : This program only checks for certain basic settings which might prevent the
system from normal functioning. The correctness of these basic settings does not ensure that
all the customizing settings are correct.
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Excise Tax Rate Maintenance
The master information for CIN has to be maintained.

Transaction: J1ID
Path: Excise -> Master Update -> Master Data
(Alternatively use the Excise rate Maintenance Push-button)
4.1
Maintenance of Chapter Id
Materials that are subject to excise duty need to have a chapter Id. All these chapter Ids have to
be maintained along with their description.
Transaction: J1ID
Path: Excise -> Master Update -> Master Data -> Chapter Id
4.2
Combination of Material Number and Chapter Id.
An entry is made to associate a material number and plant to a chapter Id. The field Ind. Sub has
to be marked as X in case the material is used in subcontracting. If the chapter-id declaration for
the material is common across multiple plants then the plant could be left blank. But if the excise
declaration of the material varies with plant then it can be maintained separately.
At material level you can set an over-ride as to whether multiple credit is allowed for the material
or not.
Transaction: J1ID
Path: Excise -> Master Update -> Master Data -> Material and Chapter Id combination.
4.3
Assessable Value for Excise Calculation
Maintain the Net Dealer Price or Assessable Value of materials that are sent for subcontracting
under rule 57F4 for excise duty calculation. If an assessable value is maintained for a material it
will be used as the basis for calculating the excise to be reversed while sending the material out
on sub-contracting. If a net-dealer price value is maintained for a finished product then that will be
used as the basis of excise calculation in the absence of an assessable value.
Transaction: J1ID
Path: Excise -> Master Update -> Master Data -> Material Assessable Value
4.4
Modvat Determination
Maintain the excisable finished products manufactured and the excisable input materials used in
the production of those finished products, as declared to the excise authorities. The table
determines whether MODVAT credit can be claimed on the excise duty paid on inputs.
Only if the input-output relationship is declared for the raw-material , Part1 will be created.
Transaction: J1ID
Path: Excise -> Master Update -> Master Data -> Modvat Determination
4.5
Vendor Excise Details
Maintain the excise registration details, CST no , LST no and PAN no along with the excise tax
indicator and the SSI status for the vendor. The excise tax indicator indicates the special status of
the vendor which qualifies for excise duty exemptions. SSI status decides whether the vendor
qualifies as an SSI.
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Transaction: J1ID
Path: Excise -> Master Update -> Excise Status -> Vendor Excise Details
4.6
Customer Excise Details
indicator for the customer. The excise tax indicator indicates the special status of the customer
which qualifies for excise duty exemptions.
Transaction: J1ID
Path: Excise -> Master Update -> Excise Status -> Customer Excise Details
4.7
SSI Concessional Rates
Maintain the SSI status and the corresponding excise duty percentages. If a vendor comes under
SSI then these rates will be picked up for excise calculation.
Transaction: J1ID
Path: Excise -> Master Update -> Excise Status -> SSI Concessional Rates
4.8
Company and Plant Excise Additional Data
indicator for the each plant in the company which has an excise registration. The excise tax
indicator indicates the special status of the company.
Transaction: J1ID
Path: Excise -> Master Update -> Excise Status -> Company and Plant Excise Additional data
4.9
Excise Indicator for Plant and Vendor
Maintain the excise indicator for the company and the vendor that is used to determine the final
excise duty indicator. This final excise indicator decides the excise rates applicable.
Transaction: J1ID
Path: Excise -> Master Update -> Excise Status -> Excise indicator for plant and vendor
4.10
Excise Indicator for Plant and Customer
Maintain the excise indicator for the company and the customer that is used to determine the final
excise duty indicator. This final excise indicator decides the excise rates applicable. Also maintain
the concessional form codes applicable for the customer. In case a concessional form is being
provided by the customer then the final excise indicator should point to the concessional excise
applicable.
Transaction: J1ID
Path: Excise -> Master Update -> Excise Status -> Excise indicator for plant and customer
4.11
Excise Tax Rate Maintenance
Maintain the validity period, excise tax percentage, excise duty amount in case of Basic excise
duty and AED and SED percentages for the chapter Id and excise indicator. Both ad-valorem and
quantity based excise can be maintained for Basic excise duty. When both are maintained for a
chapter-id excise indicator combination then the amount is calculated as the sum of the two. In
case a specific rate is not maintained for a concessional excise then the normal excise rates are
picked up and used.
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Excise indicator 1 stands for normal excise rates for the chapter-id.
Transaction: J1ID
Path: Excise -> Master Update -> Excise Rate -> Excise Tax rate
4.12
Additional Excise Rate
Maintain the validity period, percentage and duty amount-in case of cess to be paid for the
material.
Transaction: J1ID
Path: Excise -> Master Update -> Excise Rate -> Additional Excise Rate
4.13
Exceptional Material Excise Rate
Maintain the exceptional excise duty percentages for a material or vendor/customer material
combination. If the material has a specific duty irrespective of chapter-id classification and the
vendor/customer maintain the excise rates with vendor as blank. If the specific duty is for the
material and for a specific vendor/ customer maintain the duty for the material and
vendor/customer combination.
Transaction: J1ID
Path: Excise -> Master Update -> Excise Rate -> Exceptional Material Rate
4.14
Sales Tax Setoff Percentages
Maintain the sales tax setoff percentages for input materials. If a setoff percentage is defined for a
material then the same will be considered during purchase order creation for calculation of sales
tax setoff amount and will not get added to the inventory value. This sales tax setoff amount is
accounted separately during invoice verification.
Transaction: J1ID
Path: Excise -> Master Update -> Excise Rate -> Exceptional Material Rate
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Tax code is mandatory. Excise duty will be calculated and displayed in the excise invoice
create screen only, if valid tax code is entered here. GR based IV indicator should be
ON for goods receipt based invoice verification.
Excise Tax Processing
5.1
Purchasing
5.1.1
Process Overview
The vendors excise invoice capturing has become a part of the purchasing process in CIN.
The excise duty in the vendors excise invoice becomes the basis for doing the material valuation
at the goods receipt and subsequent stages.
The CIN enhancements include the following features.
- MODVAT credit availment.
- Classification of materials into raw materials and capital goods.
- Updation of part I and part II registers.
- Material valuation after considering the excise duty in vendors excise invoice.
The one-step goods receipt process can be followed when we know the correct accepted goods
receipt quantity. The two-step goods receipt process can be followed when the goods are first
inwarded into the blocked stock and subsequently into unrestricted stock.
5.1.2
Purchasing With One-Step Goods Receipt
5.1.2.1 Workflow
1) Create the Purchase Order
Path: Logistics Materials Management Purchasing Purchase Order Create Vendor
Known.
Follow standard purchase order creation procedure.
Choose DETAILS button for next screen.
2) Enter the Vendors Excise Invoice

Transaction: J1IA.
Path: India Localization Excise Excise Invoice Create.
Purchase order number, excise group, vendors excise invoice number and excise invoice
date are mandatory.
The vendors excise division, range and ECC.No will be displayed from the master and the
user can change if the values are different in the vendors excise invoice.
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If the supplier of the material is different from the vendor on which the PO is raised, the
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Enter the business area. This is optional.
Choose DETAILS button for entering the item details.
Screen: Excise Invoice Item Details
Select the items according to the vendors excise invoice.

The description, quantity, excise duty fields can be changed. Change the values according to
the vendors excise invoice.
Choose PROPOSE VALUES button to scale down / scale up the excise duty to the extent of
quantity entered. The excise duty can be changed when the calculated excise duty is different
from the excise duty on the vendors excise invoice.
Choose PURCHASE ORDER button to display the purchase order.
Choose TEXT button to enter any text.
Choose Additional Data to enter some additional data
Choose SAVE button and save the vendors excise invoice.
3) Enter Goods Receipt to Unrestricted Stock

Path: Logistics Materials Management Inventory Management Goods Movement
Goods receipt For Purchase Order PO Number Known.
Enter movement type 101 to receive material in the unrestricted stock.
Enter the vendor, excise group, vendors excise invoice number, vendors excise invoice year
and the register type (RG23A,RG23C).
Screen: Goods Receipt Item Details
Enter the Material and the received quantity.

The number of items and materials in the vendors excise invoice should match exactly with
the goods receipt.
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Part1 entries get created only if there is a value update for the GR
If the MODVAT credit is changed then the difference is debited or credited to the material
during invoice verification.
4) Verify and Post the Vendors Excise Invoice

Transaction: J1IB.
Path: India Localization Excise Excise Invoice Verify/Post.
Enter internal generated number to retrieve the excise invoice details.
Use match code to find the internal generated number either using GR document or vendor
excise invoice number.
Choose the EXCISE INVOICES button to list excise invoices for the given status.
Choose DETAILS button to verify the item details.
Screen: Excise Invoice Verify/Post - Item Details
Verify the description and excise duty.

The duty paid by the supplier is displayed for information
The MODVAT credit which can be availed is displayed as per tax code and can be changed
Choose SAVE button to save the changes without posting excise.
Enter the Posting Date and Choose POST EXCISE button to save and post excise.
Choose MATERIAL DOCUMENT button to display the goods receipt.
Choose TEXT button to enter the text.
The Excise invoice can be posted only if Part1 is created. If GR has been created without
giving the excise invoice reference then you need to change the excise invoice to give
the reference.
5) Enter and Verify the Vendors Invoice

Follow standard invoice verification procedure.
Set the calculate tax indicator - ON in the Vendor items Screen. This is mandatory.
5.1.3
Purchasing With Two-Step Goods Receipt
5.1.3.1 Workflow
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In the case of two-step goods receipts the vendors excise invoice is created with
reference to the material document using which the material was taken into blocked
stock.
This step is identical for one-step goods receipt and two-step goods receipt:
1) Create Purchase Order.
2) Enter Goods Receipt to Blocked Stock

Follow standard goods receipt procedure.
Use Movement type 103 to receive the material into blocked stock.

Enter purchase order, goods receipts number, excise group, vendors excise invoice number
and excise invoice date.
The following steps are identical for one-step goods receipt and two-step goods receipt:
4) Enter Goods Receipt from blocked stock to unrestricted stock.

5) Verify the Vendors Excise Invoice (MODVAT Posting).
6) Enter and Verify Vendors Invoice.
5.1.4
Purchasing imports
5.1.4.1 Workflow
1) Create Purchase Order.
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This steps is similar to the one-step goods receipt except for the fact that it is a foreign
vendor. The Purchase order may or may not have excise component. The customs duty
and CVD are maintained as delivery charges in the purchase order
A zero tax code has to be entered in the item details for enabling the excise invoice
capture
GR based IV is not mandatory for these purchase orders
A sample pricing procedure J_IMP has been delivered with the delivery charges
The CVD component of customs duty has to mapped as a condition type in R/3 and this
has to be mentioned in the CIN IMG Excise conditions against the CVD condition type
2) Enter Customs duty paid invoice
This step is the standard R/3 invoice verification where in you can process the delivery
charges due to customs and post an invoice detailing the actual customs duty and CVD
paid.
3) Capture the Excise invoice for the CVD component of customs duty paid
Transaction: J1IA.
Path: India Localization Excise Excise Invoice Create.
Purchase order number, excise group, vendors excise invoice number and excise invoice
date are mandatory.
The vendors excise division, range and ECC.No may not exist if the vendor is foreign,
Mark the CVD button if the MODVAT credit is taken for CVD
Enter the invoice number and date for the customs duty paid invoice in the popup
If invoice is given the CVD is copied from the Invoice otherwise it is copied from the Purchase
order
Select the items according to the vendors excise invoice.

The description, quantity, can be changed. Change the values according to the vendors
excise invoice.
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Maintain text-ids using CIN customizing.

A user-exit is provided before saving the excise invoice to determine whether MODVAT
credit can be availed on the CVD paid for this invoice.
If the purchase order has excise duty the same gets copied after conversion to local currency.
If there is no excise component in the PO, CVD can be entered in local currency.
Base value gets copied to the excise invoice from PO after conversion to local currency.
Choose PROPOSE VALUES button to scale down / scale up the excise duty to the extent of
quantity entered. The excise duty can be changed when the calculated excise duty is different
from the excise duty on the vendors excise invoice.
Choose PURCHASE ORDER button to display the purchase order.
The following steps are identical for one-step goods receipt and imports .
4) Enter Goods Receipt to Unrestricted Stock
The material valuation happens at a price less of modvatable CVD component which has
been captured in the excise invoice.
The CVD clearing account need to be maintained in the company customizing in J1IT.
Instead of normal modvat clearing account, this account will be credited during Excise
invoice verification.
6) Enter the Vendors Excise Invoice for other charges

5.1.5
MODVAT credit without reference
5.1.5.1 Process overview

MODVAT credit can be availed by a company if the consignee (ship to party) happens to be the
company. The purchase order for the goods which are mentioned in the excise invoice need not
be raised. In such cases PO need not exist. Excise invoice can be captured giving the actual
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Maintain text-ids using CIN customizing.
A user-exit is provided for the optional validation of the GR document entered
excise paid details of the vendor and MODVAT can be availed. In these cases even goods receipt
is not mandatory. Excise Part1 and Part2 registers are created based on the excise invoice itself.
5.1.5.2 Workflow
Transaction: J1IX.
Path: India Localization Excise Excise Invoice Create Create without PO
Company code, Plant , Excise group, vendors excise invoice number and excise invoice
date are mandatory.
The vendors excise division, range and ECC.No are copied from vendor if vendor is given .
This can be changed,
Purchase order and goods receipt reference are optional and not validated.
The items in the vendors excise invoice can be entered.

The description, quantity, can be changed. Change the values according to the vendors
excise invoice.
Base value, rates and the excise value can be entered for each item as per the vendor's
excise invoice.

Transaction: J1IW.
Path: India Localization Excise Excise Invoice Verify/Post. Without PO

Use match code to find the internal generated number using vendor excise invoice number.
Screen: Excise Invoice Verify/Post - Item Details
Verify the description and excise duty.

Choose SAVE button to save the changes without posting excise.
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Enter the Posting Date and Choose POST EXCISE button to save and post excise.
Choose MATERIAL DOCUMENT button to display the goods receipt.
Choose TEXT button to enter the text.
5.1.6
After you press the POST EXCISE button, you will find the ACCOUNTING DOCs button
and this will help you to display the accounting entries. RG23 Part1 and Part2 entries
are generated in this case at the time of POSTING. The accounting entries are made
business area wise.
Partial MODVAT credit
5.1.6.1 Process overview

Based on the nature of the industry and other stipulations, only a specific percentage of the
excise duty that has been paid can be availed as MODVAT credit. The balance of the excise duty
has to be passed on to the material value.
CIN functionality provided for this feature include:
- Customization option to check whether the company takes partial MODVAT credit
- Tax codes to reflect the percentage of excise value for which MODVAT credit can be availed
and also the extend to be loaded on to inventory
- MODVAT amount is copied to the Excise invoice and can be changed.
- Excise component which adds to material value is displayed in the excise invoice and gets
added to inventory value during goods receipt.
5.1.6.2 Workflow
Workflow is the similar to 5.1.2.1. The only difference being that Purchase order should use a
tax code with MODVAT inventory percentages.
5.1.7
If the modvat credit being taken is less than the duty amount entered, then the balance
amount is loaded on to inventory during Commercial invoice verification.
Multiple GR to single Excise invoice
The following customization has been provided at plant level

1. Multiple GRs allowed for same excise invoice
2. Multiple credit allowed for the same excise invoice
An extra customization is possible At the material chapter-id level there will be an indicator
which can be used to indicate whether multiple credit is allowed for the material. This will not be
used for validation in GR.
Based on the customization system will allow multiple GRs to be created for the same excise
invoice. Still there will be a check as to whether this is the second GR for the same excise
invoice. A warning is issued which is configurable thru CIN IMG.
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Batch management should be active in the case of Tools and Assets. Goods receipt and
excise invoice can be tracked from Goods Issue only through batch numbers.
1.1.6.1
In Excise invoice verification, based on the customization system will show all the current screen if
the flag is not set at plant level.
If flag is set for multiple credit then the system will display all the GRs so far created with
reference to the excise invoice. If at material level multiple credit is dis-allowed then there will be
a confirmation pop-up when u take credit.
If multiple credit is allowed at material level then credit can be availed on each GR individually.
If the GR is cancelled before taking Part2 credit system will not bring up this GR for credit and the
excise challan qty in the GR is available for another GR.
If the GR is cancelled after taking credit into Part2 then the GR entry is indicated Cancelled in
the verify/post transaction. You need to reverse the document to reverse the credit. This will
introduce a debit to RG23A/C to the extend of the credit availed on the original challan.
5.2
Capital Goods
5.2.1
Process Overview
The procedure for availing MODVAT credit for capital goods is different from the one for raw
materials. The timing of availing MODVAT credit also differs for different types of capital goods.
The New CIN functionality provided to avail MODVAT credit for capital goods include:
MODVAT credit availment in on-hold account after the receipt of excise invoice.
Postings in the Part I registers.
Material valuation as per the excise duty in the vendors excise invoice.
Availing Credit in MODVAT clearing account.
Downloading Goods Issue based on Internal Orders.
Allocation of materials to multiple assets.
5.2.1.1 Consumables
5.2.1.1.1 Workflow
1) Create the Purchase Order.

Known.
Initial Screen
Choose Details button for next screen.
Page 30
SAP AG
The recommend
We
Set
Pop-up
Tax
FI documents
for
Code
entering
and
that
GR
will
excise
you
based
be have
generated
invoice
IVonly
indicator
appears
one
at this
type
ON
stage
only
of
in capital
the
when
and
item
an
you
goods
details
entry
enter
materials
isscreen.
the
generated
plant.
in a purchase
in the
order.
MODVAT
on-hold account. The ACCOUNTING DOCS button will not appear in the case
of capital goods as the entry is not made into Part2 registers
Screen: Item Details
2) Enter the Vendors Excise Invoice.

Transaction: J1IA.
Path: India Localization Excise Excise Invoice Capture Create
Enter purchase order number, excise group, vendors excise invoice number, excise Invoice
date and capital goods indicator.
Enter material type as consumables/tools or assets
3) Enter Goods Receipt to Unrestricted stock.

Enter the vendor, excise group, excise invoice number, excise invoice year and the register
type as RG23C.
4) Verify Vendors Excise Invoice.

Transaction: J1IB.
Enter internally generated number to retrieve the excise invoice details.
Use match code to find the internally generated number either using GR document or vendor
5) Avail MODVAT Credit.

Transaction: J1IC
Path: India Localization Capital Goods MODVAT Credit
Use this option to avail MODVAT credit for capital goods in RG23C part II.
Choose CONSUMABLES/TOOLS button.
Capital Goods Menu
Page 31
SAP AG
MODVAT
Only
Batch
The
following
RG23C
the
numbering
Capital
credit
Part
steps
isGoods
IIisavailed
entries
are
mandatory
identical
Indicator
to
and
thethe
for
extent
for
can
tools.
accounting
capital
beofThe
changed
goods
goods
goods
entries
issue
here.
consumables
receipt
will
quantity.
See
beand
Status
generated
generated.
the
andvendorss
Field.
tools:
now. excise
invoices are traced back based on the batch number.
Enter the goods receipt document number.

Choose the RELEASE TO A/C button to generate FI entries for availing credit.
Consumables / Tools
Choose the DETAILS button to view the items.
Release to Accounts
Press SAVE Button to save the changes.
5.2.1.2 Tools
5.2.1.2.1 Workflow
1)
2)
3)
4)
Create the Purchase Order

Enter the Vendors Excise Invoice
Enter the Goods Receipt to unrestricted stock
Verify the Vendors Excise Invoice (MODVAT Posting On Hold)
5) Enter Goods Issue

Follow standard SAP Goods Issue Procedure.
6) Avail MODVAT Credit

Transaction: J1IC
Path: India Localization Capital Goods MODVAT Credit
Use this option to avail MODVAT credit for capital goods in RG23C part II.
Choose CONSUMABLES/TOOLS button.
Enter the goods issue document number.
Choose the DETAILS button to view the items.
Choose the RELEASE TO A/C button to generate FI entries for availing credit.
Change the capital goods indicator and save.
Page 32
SAP AG
Goods
The
following
issues steps
madeare
for identical
the internal
for order
consumables,
are downloaded
tools and
to assets.
avoid data loss due to
archival.
5.2.1.3 Assets
5.2.1.3.1 Workflow

3) Enter the Goods Receipt to unrestricted stock
4) Verify the Vendors Excise Invoice (MODVAT Posting On Hold)
5) Create Internal Order
Path: Accounting Controlling Orders Master data Order Create
Follow standard SAP internal order creation procedure.
Choose BASIC DATA button for entering the internal order data.
Enter the basic details for the internal order.
6) Enter Goods Issue

Path: Logistics Material Management Inventory Management Goods Movement
Goods Issue
Follow standard SAP goods issue procedure.
Movement type 261 is used for goods issue with internal order reference.
7) Download Goods Issues for Internal Order

Transaction: J1IC
Path: India Localization Capital goods MODVAT credit
Choose DOWNLOAD GIs FOR IO button.
Enter internal order type and internal order number.
8) Allocate Materials to Asset

Transaction: J1IC
Choose ALLOCATION button.
Enter the internal order type, number and asset number.
The system retrieves the goods issue made for the internal order. Enter the quantity that
should be allocated for the asset.
9) Avail MODVAT Credit
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SAP AG
1.1.7
Set
Batch
We
When
recommend
Taxmanagement
you
Code
save
and
that
the
GR
accounting
is
you
based
nothave
required.
IVonly
indicator
entries
one
No and
type
need
ONthe
of
in
forcapital
the
RG23C
Goods
item
goods
part
issue
details
IImaterials
hence
entries
screen.
these
are
in agenerated.
materials
purchase need
not be taken into stock. Goods receipt can be done directly to an internal order, WBS or
order.
network
1.1.7.1
Transaction: J1IC
Choose ASSETS button to avail MODVAT credit.
Enter the plant, excise group, internal order type, internal order number, asset number,
installation date and installation reference for availing MODVAT credit.
System calculates and displays the MODVAT details.
Choose SAVE to avail MODVAT Credit.
5.2.2
Alternate Process Overview
The complete range of capital goods can be divided into goods for which installation certificate is
required and goods for which installation certificate is not required.
CIN provides an alternative process to avail MODVAT credit for capital goods. This include:
Immediate MODVAT credit availment after the receipt of excise invoice for consumables and
tools.
Postings in the Part I registers.
Material valuation as per the excise duty in the vendors excise invoice.
Allocating excise invoices for assets into a project, WBS , network , cost center or Asset.
Availing MODVAT credit for the asset after installation certificate is provided
5.2.2.1 Consumables
5.2.2.1.1 Workflow
1) Create the Purchase Order.

Known.
Initial Screen
Choose Details button for next screen.
Screen: Item Details
2) Enter the Vendors Excise Invoice.

Transaction: J1IA.
Path: India Localization Excise Excise Invoice Capture Create
Page 34
SAP AG
Pop-up
The
Mark
following
the
forImmediate
entering
steps excise
are
credit
identical
invoice
field in
forcompany
appears
capital goods
only
customization
when
consumables
you enter
in CIN
and
the
IMG
plant.
tools:
MODVAT credit is taken directly into RG23C Part2
1.1.7.2
Enter purchase order number, excise group, vendors excise invoice number, excise Invoice
date and capital goods indicator.
Enter material type as consumables/tools or assets
3) Enter Goods Receipt to Unrestricted stock.

Enter the vendor, excise group, excise invoice number, excise invoice year and the register
type as RG23C.
4) Verify Vendors Excise Invoice.

Transaction: J1IB.
Enter internally generated number to retrieve the excise invoice details.
Use match code to find the internally generated number either using GR document or vendor
5.2.2.2 Tools
5.2.2.2.1 Workflow
1)
2)
3)
4)
Create the Purchase Order

Enter the Vendors Excise Invoice
Enter the Goods Receipt to unrestricted stock
Verify the Vendors Excise Invoice
Mark the Immediate credit field in company customization in CIN IMG
MODVAT credit is taken directly into RG23C Part2
Page 35
SAP AG
The following
When
you save
steps
the accounting
are identicalentries
for consumables,
and the RG23C
toolspart
andIIassets.
entries are generated.
1.2
5.2.2.3 Assets
5.2.2.3.1 Workflow

3) Enter the Goods Receipt for any cost object
4) Verify the Vendors Excise Invoice (similar to 5.2.1 )
5) Allocate Excise invoice to the Asset
Enter Asset no. This need not be the asset in Fixed Assets Module.
Optionally you can enter a cost object type and an object. If an object is entered then it is
validated. This could be a cost center, Internal order, WBS element or Netwrok.
If cost object is entered all GR's allocated to the cost-object are selected and corresponding
excise invoices are displayed.
You can select the excise invoices from this list and allocate it to the asset
An excise invoice is always allocated in full to an asset. You cannot split the excise invoices
across assets. Partial capitalization of one excise invoice not possible
Allocation of excise invoices ( Inclusion/exclusion of excise invoices for an asset ) is possible
until the asset is installed.
If no cost object is entered then all excise invoices for assets where in the MODVAT is onhold are displayed and selection can be done from this list.
6) Installation of the Asset
Enter asset no. This need not be the asset in Fixed Assets Module.
Enter the excise group of the RG23C register to which the credit need to be taken.
The total MODVAT credit available is displayed
It is possible to display all the excise invoices allocated to the asset
On entering installation certificate with date credit can be taken by pressing SAVE.
Installation of the asset creates Part2 entries for all excise invoices
For an asset which is already installed the accounting document can be displayed.
Allocation/deletion of excise invoices from an asset is not possible once it is installed.
5.3
Subcontracting
5.3.1
Material Declaration
All the raw materials and semi-finished goods that can be sent by the company for SubContracting under rule 57F4 have to be declared in the table J_1IMTCHID.
Transaction: J1IL
Path: Excise -> Master Update -> Master Data -> Material And Chapter Id Combination
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SAP AG
5.3.2
Rate Determination
The excise rate for a raw material will be determined from the latest excise invoice for the
material received from the vendor.
In case the item is manufactured in-house, the assessable value or the net dealer price has to be
maintained. The sequence used in the process of rate determination is:
1. Latest excise invoice rate
2. Assessable value
3. Net dealer price
Transaction: J1IL
Path: Excise -> Master Update -> Master Data -> Material Assessable Value
5.3.3
Process Overview
In the example used to illustrate the process, a combination of raw materials and in-house
manufactured items are being sent out for subcontracting.
5.3.4
Workflow

Enter L as the Item Category in the initial screen.
2) Create the Transfer Posting Order

Transaction : MB00
Path: Logistics -> Materials management -> Inventory management -> Goods Movement ->
Transfer Posting -> Create w/ref to PO
In the pop-up screen, enter the movement type 541 and the Purchase Order Number
3. Create 57F4 Document

Transaction: J1IF
Path: 57F4 -> Create
In the initial screen, choose create.
Enter the reference transfer posting document, the document year, the serial group and the
excise group.
There are cases where the final assembly that will be received from the subcontractor
comprises both raw materials and in-house manufactured components. The process of
determining the base value for excise duty calculation is as follows: Latest excise
invoices in case of raw materials, net dealer price or assessable value in case of inhouse manufactured items.
On saving, the 57F4 number is generated. A pop-up asking the user to release the
document to accounting appears. The document can either be released at this point of
time or at a later date depending on when the goods are moving out of the factory
premises.
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SAP AG
The goods can be received from the subcontractor either in one lot or piecemeal.
4) Release the 57F4 Document to Accounting

Transaction: J1IF
The posting date will be defaulted with the system date. However the field is open for user
input.
After saving, the document status is changed from initial to posted. The business area
entered in the initial screen is used for accounting entries.
It is possible to pay the duty debit from either RG23A BED , AED or SED.
Path: 57F4 -> Release to Accounting.

In the initial screen, enter the reference 57F4 document, the document year, the serial group
and the excise group.
5) Print 57F4 Challan
Choose Print Icon in the standard tool bar of 57F4 menu to print the 57F4 challan.
Enter the 57F4 challan no, date and select Print option in the 57F4 group box.
Detail screen shows all posted 57F4 documents for the period entered.
Select 57F4 to be printed and click the Print button.
A Popup appears to accept the pre-printed excise invoice no.
Click the print button to start the printing process.
The pre-printed 57F4 number is stored in the 57F4 challan for future reference.
6) Cancel 57F4
You may need to cancel a 57F4 challan even after it has been posted. This could be because of
the damage to stationery while printing or for some other reasons by which the material is not
going out to the sub-contractor.
Choose Delete from 57F4 menu
Enter the 57F4 details
Confirm Delete
System marks the challan as Cancelled. The duty debit is reversed by same extent in the
RG register
7) Receive Processed Materials from Subcontractor

Follow the standard goods receipt procedure.
Enter the plant and the storage location. The pop-up screen appears.
Page 38
SAP AG
The separation
After
the subcontracted
of exciseitems
invoice
have
andbeen
commercial
receivedinvoice
from the
allows
vendor
for in
multiple
full quantity,
excisethe
57F4 document
invoices
(throughcan
split
becriteria)
completed
while(closed).
invoicing
The
theMODVAT
customercredit
with awill
single
be reversed
commercial
at this
point of time.
invoice.
JFACT
If
only partial
is the quantity
model pricing
is coming
procedure
from the
forsub-contractor
factory sales. then the 57F4 challan can be
completed partially.
With partial completion the duty is credited back only partially to the extent received.
1.3
Enter the 57F4 document number in the field 57F Challan No.
Enter the series group for 57F4 challan
7) List 57F4 Due for Return

Transaction: J1IF
Path: 57F4 -> Choose Pending 57F4 List button
A list of 57F4 challans pending with the sub-contractor can be displayed
A status field in the selection can be used to list the pending 57F4 challans.
With status C the same report will list all completed 57F4 challans.
8) Complete 57F4 Document

Transaction: J1IF
Path: 57F4 -> Complete 57F4 document
5.4
Sales and Distribution
5.4.1
Sales from Factory
5.4.1.1 Separate Commercial and Excise Invoice

Can be done when the commercial invoice is prepared after the goods are being dispatched.
Excise invoice can be prepared and sent along with the goods.
The document flow in such a case would be OR - > JF - > JEX - > F2 . Here OR is the sales
document type, JF is the delivery type ( JF is a copy of standard delivery type LF) , JEX is the
Proforma billing document type ( JEX is a copy of standard Proforma F8 ) and F2 is the invoice.
The copy control procedures for sales document should have been set up to replicate this
document flow.
5.4.1.1.1 Process flow
1) Create the Sales Order

Path: Logistics Sales and Distribution Sales Order Create ( VA01 )
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SAP AG
A Proforma Excise Invoice of type JEX can be created only if Goods issue has been
completed for the Delivery. The system prevents creation of multiple Proforma Excise
Invoices.
The Proforma Excise Invoice serves as the basis for MODVAT utilization. This document
has to be sent along with the Goods dispatched in case the commercial invoice is not
yet created.
The excise Invoice split in the Proforma excise invoice is based on split criteria like
number of items in preprinted stationery or the material chapter-id. No accounting takes
place at this stage. This is a template for the final Excise invoice to be sent to the
customer.
Follow the standard order creation procedure.
2) Create the Delivery

Transaction: VL01
Path: Logistics - > Sales and Distribution - > Shipping - > Delivery - > Create
Follow the standard delivery creation procedure
Choose Edit - > Enter delivery type and enter JF
Enter the shipping point for the delivery
2.a) Picking in 4.0B

Transaction VL16
List Daily worklist
Select the line by select all
Click Item list
Again select the line by select all
Choose Transfer order
Transaction VL02 ( delivery change )
Post goods issue
3) Create the Proforma Excise Invoice

Transaction: VF01
Path: Logistics - > Sales and Distribution - > Billing - > Billing document - > Create
Choose Settings - > Default data and enter Billing type JEX for the creation of Proforma
Excise invoice.
4) Utilize MODVAT Credit
Page 40
SAP AG
Irrespective
If
When
required,
therethe
of
is enough
the
pre-printed
number
balance
Excise
of Excise
in the
Invoice
Invoices
RG23
number
accounts
due to
can
the
the
besplit
system
entered
criteria,
automatically
nowthe
or delivery
after printing
proposes
items
Excise
the
can
adjustment
be Invoice
combined
amount.
into a single
In casecommercial
if there is not
invoice
enough
(if the
balance
standard
adjustment
requirements
can beare
done
from PLA. The CESS component of Excise can be adjusted only from PLA..
met).
Path: India Localization - > Excise - > MODVAT Utilize Fact (J1II )
Exc. Inv. for Delivery - > Create
Enter the Delivery document number and posting date.
Excise Invoice - > Create
Alternatively if you need to do MODVAT utilization based on Invoice enter the invoice number
and date.
Choose Invoice Document and go to Details.
Enter the Excise group corresponding to the Register and Accounts
Enter the Series group corresponding to the Outgoing Excise Invoice series
Choose SIMULATE to check if the utilization is done properly and the document is ready for
posting.
Choose TEXTS to enter the texts to be stored for the Excise Invoice. The text ids for the
outgoing Excise Invoice are created using the India Version IMG for the text object J1II.
Choose BALANCES to display the balances of the MODVAT Accounts
Choose UTILIZATION to go to the Utilization Details Screen.
Choose SAVE to create the outgoing Excise Invoice and also to create the accounting entries
for MODVAT utilization.
Important : The Delivery type to Billing type flow has to be established in India Localization IMG (
J1IT ) for all allowed document flow for proper validation
The Excise invoice is created in the number range corresponding to the series group. RG23
Part2 and PLA register entries are created for the modvat utilization. If a business area is
assigned to the sales area in the customization the same is used for the accounting entries.
5) Create Commercial Invoice

Transaction: VF01
Path: Logistics - > Sales and Distribution - > Billing - > Billing Document - > Create
Follow the standard invoice creation procedure.
5.4.1.2 Combination of Commercial and Excise Invoice

5.4.1.2.1 Process Flow
Can be done when the commercial invoice is prepared immediately after goods issue.
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SAP AG
Document
The
reference
wisedocument
utilizationinisthis
displayed.
case is Account
the Commercial
balancesinvoice.
and availability of amount in the
accounts can be checked.
The document flow in such a case would be OR - > LF - > F2 .
The copy control procedures for sales document is delivered in standard SAP. Incase
invoice split is required in this case the invoice split formula can be attached to the copy
control of LF to F2
JFACT is the model pricing procedure for sales from factory.
1) Create the Sales Order

Transaction: VA01
Path: Logistics - > Sales and Distribution - > Sales - > Order - > Create
2) Create the Delivery

Transaction: VL01
3) Create the Commercial Invoice

Transaction: VF01

Path: India Localization - > Excise - > MODVAT Utilize Fact (J1II)
Excise Invoice - > Create or Exc. Inv. for Delivery - > Create
The rest of the workflow is as described for separate excise and commercial invoice.
5.4.2
Modvat Utilization in Batch
Transaction: J1I3
Path: India Localization - > Excise - > MODVAT Utilization in batch
Enter the range of billing documents for which the MODVAT utilization needs to be done.
Choose Batch utilization to actually do the utilization in batch.
5.4.3
Sales with Exemption Form
The procedure is described for the case of creating a separate excise invoice.
JFACT is the model pricing procedure for sales with exemption forms.
1) Create Sales Order
Page 42
SAP AG
New
If
the pricing
Form has
takes
notplace
beenusing
received
the exemption
(see also Chapter
rate for Forms
the entered
Tracking)
Formthe
type.
Excise value is
recalculated based on the normal rate.
Transaction: VA01
Path: Logistics Sales and Distribution Sales Order Create
Enter Excise exemption forms on the screen Header Business data field Form1 or Form 2.
When the customer is providing an excise exemption form, the information needs to be provided
in the sales order. This is picked up and corresponding reduced excise rate is used for the sales
order.
2) Create Delivery
Transaction: VL01
3) Create Proforma Excise Document

Transaction: VF01

Path: India Localization - > Excise - > MODVAT Utilize Fact ( J1II )

Transaction: VF01
5.4.4
Free Samples
JFACT is the model pricing procedure for free samples.
1) Create Sales order

Transaction: VA01
Enter Item category as TANN for the free sample.
Select the item and choose PRICING.
Enter condition type JFCG.
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SAP AG
JFCG is a 100% discount manual condition which reduces the net value of the item to zero
while excise tax is calculated on the base price or assessable value, allowing
subsequent MODVAT utilization.
2) Create Delivery
Transaction: VL01
3) Create Proforma Excise Invoice

Transaction: VF01
4) Utilize MODVAT
Path: India Localization - > Excise - > MODVAT Utilize Fact (J1II)
5.4.5
Export Sales
JEXPOR is the model pricing procedure for export sales.
The procedures are described for the case of creating a separate excise invoice. The system
decides whether the sales is for export depending on:
Currency of the document not INR

Country of ship-to party is not IN
Country of sold-to party is not IN
5.4.5.1 Export sales under Bond

1) Create Sales order
Transaction: VA01
2) Create Delivery
Transaction: VL01

Transaction: VF01
4) Utilize MODVAT
Excise Invoice - > Create or Path: India Localization - > Excise - > MODVAT Utilize Fact (J1II)
or Exc. Inv. for Delivery - > Create
Page 44
SAP AG
Since
The
When
excise
itsales
is avalue
sale
is made
under
is zero
under
bond
in this
no-bond,
thecase.
utilization
MODVAT
is notcredit
available.
is utilized
Onlyand
the an
outgoing
exciseExcise
invoice is
invoice is generated.
generated.
No Part2 entry is generated for the sales under Bond.
Choose the Change icon for the field Excise invoice type and toggle until the field Bond is
highlighted.
Choose set Calculate Tax button.
5) Create Commercial invoice

Transaction: VF01
5.4.5.2 Export Sales without Bond

Transaction: VA01
2) Create Delivery
Transaction: VL01

Transaction: VF01
4) Utilize MODVAT
Excise Invoice - > Create or
Path: India Localization - > Excise - > MODVAT Utilize Fact ( J1II ) Exc. Inv. for Delivery - >
Create
MODVAT Utilization screen:
Choose the Change icon for the field Excise invoice type and toggle until the field No Bond is
highlighted.
Choose set Calculate Tax button.
Calculate Tax button picks up the excise tax code defined in the India Localization IMG (J1IT)
and for this tax code calculates the excise value for the material depending on the chapter-id
assuming normal rates.

Transaction: VF01
Page 45
SAP AG
5.4.6
The Excise
Use
the customer
value isexcise
zero in
indicator
the Proforma
to maintain
Excise
a nil
document.
rate.
In the MODVAT utilization
transaction no utilization is done and no accounting entries are generated. But the sale
is marked as Deemed exports and an outgoing Excise invoice is generated.
Even though the excise duty is computed as zero while printing the excise invoice the duty
is computed for the purpose of printing
Sales to 100% EOU
JFACT is the model pricing procedure for sales to 100% EOU.

Transaction: VA01
2) Create Delivery
Transaction: VL01

Transaction: VF01
4) Utilize MODVAT
Excise Invoice - > Create or
Path: India Localization - > Excise - > MODVAT Utilize Fact ( J1II ) Exc. Inv. for Delivery - >
Create

Transaction: VF01
Page 46
SAP AG
5.4.7
Sales From Depot
5.4.7.1 Stock Transfer
The setup for stock transfer processing needs to be done using Standard IMG - > Material
Management - > Purchasing - > Purchase order processing - > Set up stock transport
order
1) Create Stock transfer order

Transaction: ME27
Path : Logistics - > Materials Management - > Purchasing - > Purchase order - > Create - >
Stock transfer
2) Create Replenishment delivery

Transaction: VF01
Path: Logistics - > Sales and distribution - > Shipping - > Delivery - > Process Dlv. Due list
Select the stock transport orders and display the delivery due list. From the delivery due list
save the deliveries.
The delivery document that gets created is of the delivery type setup in the stock transport
processing. Standard SAP has delivery type NL setup for Replenishment delivery.
3) Post Goods issue for the Replenishment Delivery

Transaction: VL02
Path: Logistics - > Sales and Distribution - > Shipping - > Delivery - > Change
Choose Picking for the Delivery document
Enter delivery quantity and pick quantity and post goods issue.
4) Create Proforma Excise invoice

Transaction: VF01
The processing is similar to sales from factory.
Page 47
SAP AG
The system
Copy
controlidentifies
of NL to JEX
GR for
needs
stocktotransport
be setup order
in theand
system
picksdocument
up the details
flow of sending
plant like Excise registration, Range Division and collectorate and copy them to the
Excise invoice.
Standard delivery type NL and item category NLN used for stock transports are not
relevant for billing. This needs to be made relevant for billing.
There is no pricing in the stock transfer order. The pricing is carried out in the Proforma
Excise invoice. The Pricing procedure determination is setup to select the stock transfer
pricing procedure JSTKTR. Only the excise value is available in pricing.
5) Utilize modvat
Path: India Localization ( J1IL ) - > Excise - > MODVAT Utiliz Fact ( J1II )
Excise Invoice - > Create or Exc Inv for Delivery - > Create
Outgoing Excise invoice is generated and MODVAT utilization is done.
5.4.7.2 Receipt at Depot

1) Create Goods Receipt at depot
For transfers from Factory Goods receipt is done against the delivery note
Transaction: VL07
Path : Logistics - > Materials Management - > Inventory Management - Goods movement - >
Goods Receipt - > For Delivery Note
Or against normal goods receipt for a purchase order
Transaction: MB01
Path: Logistics - > Materials Management - > Inventory Management - Goods movement - >
Goods Receipt - > For Purchase order
For direct purchases at the depot create goods receipt against the purchase order.
Transaction: MB01
Path: : Logistics - > Materials Management - > Inventory Management - Goods movement - >
Goods Receipt - > For purchase order - > PO number known
2) Create Excise Invoice at depot

Path: India Localization ( J1IL ) - > Excise - > RG23D at Depot - > Capture Inv at depot
(J1IG)
For Stock transfers
Enter the Goods Receipt document at the depot.
Page 48
SAP AG
This
All
the
creates
items in
anthe
entry
Goods
for RG23D
receiptat
document
the depot.
get copied here. In the depot it is possible to
have separate Excise invoice at the item level.
Choose DETAILS to go to Item details screen.

Enter the internal document number of the excise paid document at factory. This copies all
details of the factory invoice to RG23D
Choose MORE DOCS to go the Excise Invoice Details screen.
Enter the details of the Excise Invoice for the item
Enter the Internal document number of the Excise Invoice at factory for stock transfers
System automatically copies all the Factory Excise Invoice details for the item like the Generated
Excise invoice number, Excise invoice date, Item number , chapter id, Excise invoice quantity ,
Excise amount paid , Excise base value and the Part 2 Register Entry serial number through
which Excise has been paid.
You can change the receipt quantity to match the actual received quantity at the depot and
the excise value is scaled down to the receipt quantity.
Choose BACK to come back to the item details screen.
SAVE the Excise invoice at depot.
For Direct purchases
Create the Excise invoice with respect to the Goods receipt document at the depot.
The vendors purchase order and vendors Excise Registration, Range , Division and
Collectorate gets copied to the document. Excise registration details can be also maintained
for the shipfrom like it is maintained for vendor. The shipfrom can be different from the vendor
code. (Delivering plant can be maintained as a shipfrom in the system). When a valid
shipfrom code is entered then the excise registration details copied from the vendor will get
overwritten by the shipfrom excise registration details.
The excise registration details displayed can be overwritten manually
The vendor excise invoice number, RG23A Serial, RG23C Serial, PLA Serial numbers will be
copied to the Excise Invoice details screen.
The Dealers commercial invoice number can be stored in the vendor excise invoice number
as in this case the Dealer himself will not have an Excise invoice.
Choose DETAILS to go item details screen. All the items in the Goods receipt document gets
copied to the Excise invoice.
Select an item and choose MORE DOCS to go to the Excise Invoice details screen .
In the case of Direct Dealer purchases there will not be any Excise Invoice in the system. Hence
Internal document can be left blank. Dealers commercial invoice will have details of the Excise
invoices through which Excise has been paid for the item that is being dispatched. These details
can be entered directly in this screen.
You need to mention the Excise amount paid at item level as well as the receipt quantity. Also
you have to enter the Part II register serial numbers through which Excise has been paid and
the Excise Registration information of the original Excise invoice.
Choose BACK to come back to the item details screen.
SAVE the Excise invoice at depot.
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This model
The
createspricing
an entry
procedure
for RG23D
for depot
at the sales
depot.is JDEPOT.
The Excise invoice at Depot can be changed as long as it has not been used in any Sales
1.3.1.1
5.4.7.3 Sale From Depot

1) Create Sales order at depot
Transaction: VF01
2) Create delivery at depot

Transaction: VL01
3) Select Excise invoice for delivery / Material Document

Transaction: J1IJ
Path: India Localization - > Excise - > RG23D at Depot - > Depot Sales - > RG23D Selection
Enter the Delivery document number or the Material Document number and continue.
All the items in the document gets copied .
Choose TEXTS enter text for the Document.
Select an item and Choose DETAILS to go to Excise Invoice Details screen.
Choose EXCISE INVOICE to give a selection screen of available Excise invoices at the
depot.
A list of all existing Excise invoices at the depot where there is balance quantity is displayed.
You can select the Excise invoices from which the delivery has to be made.
After selecting the Excise invoices from which the delivery needs to be made, you can decide
the quantity to be used from each Excise invoice. The excise value gets calculated
proportionate to the quantity used from each Excise invoice.
Choose BACK to come to the Item details screen.
This process can be repeated for all the items in the document.
Choose SAVE after Excise invoice selection for all items to create entries in RG23D.
On saving the RG23D Folio and Depot Excise Invoice numbers will get generated
A batch selection program ( J_1IJCHK ) is available to do the selection automatically

based on the customizing settings. This program can be invoked with selection and
verify / post options. Path: SE38 Report J_1IJCHK Execute
4) Verify / Post RG23D Selection

Transaction: J1IJ
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Path: India Localization - > Excise - > RG23D at Depot - > Depot Sales - > Verify / Post
Selection is made permanent in the RG23D register by Verify / Post.
Verify / Post Completes the selection process by updating the posting flag in the RG23D
register.
This step can be carried out only after selection and after the post goods issue is completed
for the delivery
5) Cancel RG23D Selection

Transaction: J1IJ
Path: India Localization - > Excise - > RG23D at Depot - > Depot Sales - > Cancel Selection
Cancellation can be done only after the selection and before verify / post.
Cancel Selection will delete the records physically from the RG23D register.
Fresh RG23D selection will be possible again if the document is cancelled.

Transaction: VF01
5.4.8
Excise Invoice for Other Outward Movements
Transaction: J1IS
Path: India Localization - > Excise - > Invoice other mvmts - > Create Excise invoice
1) Create the excise invoice
Choose Create to create the excise invoice.

Enter the reference type.
MATD - To refer a material issue document
GRPO - To refer a Vendor excise invoice ( Vendor returns )
DLFC - To refer a Factory Excise invoice ( sales returns )
OTHR - Any reference no validation
Enter the sub transaction type if you want an alternate debit account in place of the accounts
determined by default through the customizing option Assign GL accounts to excise groups
and transaction types.
Enter the reference document number , year excise group and series group
Enter the Vendor or customer to whom the excise invoice is being sent
Enter business area. This is optional.
Press 'ENTER' to go to the detail screen
Detail screen
For reference types 'MATD', 'DLFC', 'GRPO' item details are copied from the reference
document.
New line items can be entered by choosing 'Insert Line'
Enter material, chapter-id, quantity, Base value and excise duty. If reference type is 'GRPO' or
'DLFC' then excise details get copied from the reference document.
Choose 'Insert Line' to create a new line item.
Choose Get Excise Invoice for picking the rate and amount from one particular excise
invoice.
Choose 'Text' to enter text
Choose 'Additional data' for capturing additional information.
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The output
When
you type
pressJ1I0
the has
SAVE
been
button
button,
created
the
theaccounting
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the business area. The driving program for Excise Invoice
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that
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1.3.2
Choose 'SAVE' to save the Other Excise Invoice
2) Verify and Post the other Excise Invoice

Transaction: J1IV.
Path: India Localization Excise Invoice other mvmts Post excise invoice

Choose the Release to a/c button to display the details
Choose 'NEXT PAGE' button to get to Balance utilization
Choose 'Acct Balances' to display available MODVAT balance
Enter the amount for utilization and 'SAVE'
Choose 'PRINT' to print the generated excise invoice
3) Cancel Excise invoice

Transaction: J1IS
Path: India Localization - > Excise - > Invoice other mvmts - > Cancel Excise invoice
Choose the Cancel button to display the details
Confirm Delete
5.4.9
Sales Excise Invoice Printing
Path: IMG - > Sales and Distribution - > Basic functions - > Output - > Output determination - >
Output proposal using condition technique - > Maintain output determination for billing documents
The maintenance of condition records for output can be done through
Path: - Logistics - > Sales and Distribution - > Mater Data - > Output - > Billing Document >
Create
This ensures that output gets copied to all the Excise reference documents.
The outgoing excise invoice can be printed from the MODVAT Utilization transaction or
from the excise reference document.
Path: India Localization - > Excise - > Modvat Utiliz. Fact Excise Invoice - > Print
( J1IP )
You can decide to include or exclude the documents that have already been printed.
Choose Execute to give a list of Excise Invoices that needs to be printed.
Select the Excise Invoice
Choose DISPLAY to view the Excise Invoice on the screen.
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Choose PRINT to print the Excise Invoice onto the printer.
5.4.10 MODVAT Forecasting

Transaction: J1IL
Path: Excise Reports MODVAT Forecast
The date entered in the forecast period field would be used to consider all likely increase and
decrease in the MODVAT amounts from the current date up to the date entered in the forecast
period.
Since the MODVAT related accounts are maintained excise group-wise this field is part of the
selection criterion so the MODVAT forecast displayed at any point of time will be only for all the
accounts that have been defined under the entered excise group.
The MODVAT balance against each day indicates the likely available balance for the excise group
considering all the components of BED, AED and SED for the RG23A, RG23C and PLA accounts
and the expected receipts/utilization. Normally, a negative balance against any day indicates
inadequacy of balance implying the deposit of funds into the PLA account. The balance in the
MODVAT on hold account and PLA Suspense account may be appropriately considered
depending on the likely date of availability of these amounts.
The MODVAT amounts that may be utilized in the case of export invoices or orders is not
included in the indicated balance as the option of dispatches with or without payment of duty is
available.
In the field Forecast threshold amount the user could enter the amount of MODVAT on a goods
receipt or sale as a limit that should be excluded or not considered for the forecast. The forecast
will in such cases not consider those orders with likely receipts or utilization up to this amount,
during the forecast period.
The minimum balance stored against the various accounts is considered at the time of calculating
the account balances available for utilization.
5.5
MODVAT Adjustments
Transaction: J1IL
Path: Excise Excise JV
(Alternately use the Excise JV push button)
The MODVAT availed during the purchase cycle may need to be reversed or there maybe a
requirement to make some adjustments to the related RG23 or PLA accounts. All such reversals or
adjustments can be made using this adjustment transaction.
5.5.1
Process Overview
All adjustments are done with reference to some document be it an internal document such as a
material document , a 57F4 document or an external document such as the vendors A certificate
number. Whenever a reference is made to an internal document then all relevant details of that
document are picked up and displayed in this adjustment document.
The accounts to which the FI posting is done will be different depending upon the option selected
e.g. in the case of Reversal due to material written-off the accounts used are MODVAT clearing
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Any of the Adjustment transactions can be displayed by entering the document number
generated at the time of saving.
If the reference document is repeated then a warning message is given saying that the
document already exists
1.3.3
and the RG23 accounts whereas in the case of Reversal due to Cancellation of an Excise invoice
the accounts used are exactly the same as those used at the time of creation of the Excise invoice.
Again depending upon the MODVAT account selection either the RG23A accounts or the RG23C
accounts or the PLA accounts will be used for the FI posting.
Even though depending upon the option selected some accounts will be displayed by default the
user will still have the option of using a different Debit account, this again will depend upon the
setup in the customizing table where an option is provided for debit account override.
The other options which are common across the various options of the Adjustment transaction are :
Determine GL a/cs
Here the total transaction amount and the accounts to which they are allocated are displayed. If
accounting needs to be done business area wise the same can be entered here.
If you are entering an expense account for debit then you can enter the corresponding cost-center.
Balances
Here the account balances of the accounts relevant to the selected option are displayed for e.g. if
RG23A was selected as the MODVAT account then the balances of the RG23ABED, RG23AAED,
RG23ASED will be displayed
Get Excise Invoice
This option can be executed by first selecting a line item. All the invoices which have the same
material as the selected line will be displayed for selection by the user, on selection the BED, AED
and SED amounts as in the selected excise invoice will be picked up and apportioned according to
the quantity of the selected line item and displayed in the adjustment transaction. Also the excise
invoice number , date and the vendor code of the selected excise invoice will be concatenated and
displayed in the reference document field.
Text object
Here the user can enter whatever text he requires.
5.5.2
Adjustment Scenarios
5.5.2.1 Reversal Due to Material write-off
Initial screen
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No adjustment
When
the sametransaction
goods issue
willdocument
be savedisunless
used for
thereversal
total debits
a second
and total
timecredits
then a match.
message
will be displayed informing the user that this document has already been used. The
referenced document field contains the vendor code, vendor excise invoice number and
1.3.3.1 date of the excise invoice whose values are being displayed by default. If another
invoice is selected from the list then the details of this invoice will be put in the reference
document field but if the user enters some amount manually in the amount fields then
this reference does not make any sense and needs to be manually replaced with any
meaningful text.
In the document number field enter the material document number e.g. the number of the Goods
issue which was used for actual scrapping of material. In the Document year field the year of the
material document is to be entered. The Company code is the company in which the Goods issue
document was created and also the one under which this adjustment transaction will be created.
The Excise group along with the MODVAT account selected will be used to determine the exact
GL account numbers into which the FI postings will take place.
Detail Screen
Posting date is the date with which this document will get posted. The displayed quantity can be
altered and the default display of BED,SED and AED amounts can also be altered by either
selecting another excise invoice using the Get Excise Invoice push button or by directly entering
the amounts in these fields.
G/L Account determination screen
Once all the details have been entered in the detail screen the G/L account determination push
button has to be selected and the above screen will be displayed. Here the accounts as determined
by using the Excise group and the MODVAT account selected are displayed along with the amounts
apportioned to them. Another Debit account can be added here if the debit account override has
been set in the customizing. If accounting needs to be done business area wise then the business
area for each accounting entry can be entered.
5.5.2.2 Reversal Due to Material Used for Purposes Other Than Production
The processing of this option is the same as described above.
5.5.2.3 Reversal Due to 57F4 Not Completed

In the initial screen the document number entered is the 57F4 number so the details retrieved from
this referenced document are displayed in the detail screen
Detail screen
In the detail screen the retrieved information can be changed, option has been provided to delete an
existing material, or to add an additional material, this has been done because the 57F4 document
may contain some semi-finished material whereas we would be reversing the MODVAT availed on
the raw-materials that have gone into making this semi-finished good. If a new material is entered
then it is validated for its existence in the material master and description and unit of measure are
retrieved from there.
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Here
As
opposed
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to the other
that the
adjustment
FI entry for
transactions
the Bank payment
the FI posting
of thehere
TR6 is
Challan
different
willas
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credit account and not the debit
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1.3.3.3
1.3.3.2
An additional field has been provided here to display the excise amount already paid at the time of
sending the material out with the 57F4 document. Only the differential amount needs to be reversed
through this transaction.
Apart from this all other processing is the same as explained in the first option.
5.5.2.4 Adjustments Due to Additional Excise Paid by the vendor

Since the document number entered in the initial screen refers to an external document no details
will be picked up for display in the detail screen.
Detail screen
In the detail screen all the processing is the same as in the first option except that here the user has
the option to either enter the material-wise detail information or just enter the total amount in the
fields provided as shown in the screen above. The CVD applicable field is to be selected if the
adjustment entry is being made for CVD and it is to be left blank if the adjustment entry is for
MODVAT. If CVD is applicable then the CVD amount is to be entered in the same manner as the
BED amount.
5.5.2.5 Adjustments due to TR6 Challan

In the Initial screen the user does not have to select MODVAT accounts as the FI posting here is
always for PLA accounts. Since the document number entered in the initial screen refers to an
external document no details will be picked up for display in the detail screen. But if the user is
referring to the accounting document in R/3 through which he has debited the amount to bank then
the details of the same are displayed.
Detail screen
In the detail screen of this option account information is displayed instead of material information,
the user can enter amounts against whichever accounts are required by him. All the accounts
against which no amount is entered will be dropped at the time of saving. Business area can be
entered at a header level and this is used for accounting.
5.5.2.6 Reversal Due to Cancellation of an Excise Invoice

This option is used to reverse whatever excise amount had been paid during Sales at the time of
Excise Invoice creation. In the Initial screen the Document number entered is the Sales Excise
invoice number and the series is the Series of the original sales excise invoice.
The same option can be used for reversing the excise amount paid during Excise invoice other
movements.
Detail screen
In this option no details can be changed by the user as the reversal is done for exactly the same
amount as the original Sales excise invoice.
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5.5.2.7 Other Adjustments

This option could be used for any other reversals not covered in the above options. Since the
document number entered in the initial screen refers to an external document no details will be
picked up for display in the detail screen.
Detail screen
In the detail screen of this option most of the processing is the same as in the first option. Here
additionally the user has an option to either enter material wise information or he can enter just the
total amounts in the totals field. By default the screen will be in the mode where the amounts can be
entered in the totals field but the user can use either the header or the details button to enter
material-wise or total amount information.
The rest of the processing is the same as in the first adjustment option.
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Materials which do not have enough stock in the excise group is highlighted in red
Excise and Sales Tax Reporting
6.1.1
Sales Tax Register
Transaction: J1I2
Path: India Localization - > Excise - > Reports - > Sales tax register
This reports the taxes under various tax codes and tax jurisdiction codes for a combination of
accounting keys
Enter company code

Enter fiscal year
Enter posting date range and document number range
Enter the tax code and jurisdiction code
Enter the condition types for LST, CST and setoff
Enter the ship from and ship to locations if you want to restrict to certain locations
Choose execute
6.1.2
RG1 Data Extract
Transaction: J1I5
Path: India Localization - > Excise - > Reports - > RG1/ part1 updation
Enter the company code

Enter the plant
Enter the excise group of the register
Enter material movement types relevant for the register
Enter storage locations relevant for the register
Enter document date range
Enter batches relevant for the register
Enter the special stock indicator
Choose register which needs updation RG23A Part1, RG23C Part1, RG1
Select Identify cap.goods from master if the default capital goods indicator in materialchapter-id declaration has to be used for RG23C Part1
Enter the receipt/issue reason for use in Part1 and RG1
Choose Execute
All material documents for the selection criteria and for which a register entry has not yet been
created is displayed.
Choose Select all to select all documents

Choose Deselect all to deselect documents
Choose the documents which needs to be processed for the register chosen
Choose Simulate to check if there is enough stock in the specific excise group for the register
for issues
Choose Create Register entry to update the Part1 or RG1 tables with the material documents
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For RG1 issues to sales wherever there is an excise invoice it is picked up and used for
RG1 updation
The same option can be used for creating entries in RG23A or RG23C Part1 registers.
While creating entries in the register, system will pick up only those material documents
for which Part1 posting has not been done yet .
Following table depicts the appropriate classification (receipt/issue indicator) to be applied

in J1I5 transaction for the corresponding register.
Usage:
Eg: Using J1I5, if one needs to download RG1 receipts from manufacture, use the appropriate
document details in the selction screen of J1I5 and select classification RMA and Register RG1.
Receipt/Issue
Indicator
( Classification )
IIM
Description
Issued for use/installation or in manufacture
IPD
Issued for clearance/Removal on payment

of duty
IWD
Issued for clearance/Removal without

payment of duty
IDH
Removal from factory on payment of duty

for Home use
Removal on payment of duty for export
under no bond
Removal without payment of duty for export
under bond
Removal without payment of duty for
transfers
Removal without payment of duty for other
purpose
Receipt from manufacture
IDE
IWE
IWT
IWO
RMA
ROP
Receipt from outside under any other

provision
Page 59
Relevant for
Register
RG23A PART 1
Corresponding
Column in
Register
9
RG23C PART 1
RG23A PART 1
11
11
RG23C PART 1
RG23A PART 1
16
13
RG23C PART 1
RG1
18
5
RG1
RG1
RG1
10
RG1
11
RG1
RT12
RG1
4
3
RT12
SAP AG
Download structures are as per Appendix B. Data once downloaded cannot be

downloaded again
6.1.3
Download
Transaction: J1IR
Path: India Localization - > Excise - > Reports - > Data Download
Enter the document date range

Enter the excise group for the register
Enter the file name of data file
Choose the register to be downloaded
Choose Execute
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Forms Capture
7.1
Process Overview
The forms for concessional sales tax are submitted by the buyer subsequent to the delivery of the
goods or subsequent to making the payment of the invoice. In case of an inter-state concessional
sales tax rate sale, the concessional rate is granted against the issue of C-forms.
Exemption from excise duty can be availed of under circumstances like exports, deemed exports
etc. In such cases, the buyers will have to furnish certain statutory forms to avail concessional /nil
rate of duty. Also, the exporter has to furnish the proof of export (Form AR3A) to the vendor.
If the buyer is unable to furnish the certificate at the appropriate time, material supply should be at
the normal rate of excise duty/sales tax.
Activities that involve routine monitoring and follow-up functions can also be tracked. For e.g.
depositing of TR6 challans to the PLA account and so on.
Transaction: J1IU
Path: Forms -> Forms Tracking
7.2
Forms Capture for a Sales Order
Enter the details of the forms that are to be tracked for a sales order or the delivery document.
Transaction: J1IU
Path: Forms -> Forms Tracking -> Sales Order
(Alternatively, click the Sales Order Push-button)
7.3
Forms Capture for a Purchase Order
Enter the details of the forms that are to be tracked for a purchase order and the material
document
Transaction: J1IU
Path: Forms -> Forms Tracking -> Purchase Order
(Alternatively, click the Purchase Order Push-button)
7.4
Forms Capture for a Reference Document
Enter the details of the forms/activities that are to be tracked for a reference document.
Transaction: J1IU
Path: Forms -> Forms Tracking -> Others
(Alternatively, click the Other Push-button)
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The withholding tax for an invoice or a down payment is calculated at header level. That
is, only one withholding tax code can be used for a down payment or invoice. This
implies that an invoice cannot contain items with different withholding tax rates. It can,
however, contain one or more items with the same withholding tax rate and/or one or
more items with no withholding tax. This can be handled by specifying the base amount
on which withholding tax is to be calculated. On account of calculation at header level,
companies have to instruct their suppliers not to include items with different withholding
tax rates in one invoice but issue separate invoices for different tax rates.
1.4
Tax Deducted at Source (TDS)
Transaction: J1IL
Path: TDS TDS Maintenance
As per the Indian law the withholding tax (TDS) is calculated at the time of invoice booking. The
standard SAP system offers Withholding tax calculation only at the time of payment. To handle this
difference in the calculation of the tax and to incorporate additional requirements like Withholding
tax certificate printing, Annual returns etc. this transaction has been provided.
8.1
Customizing
8.1.1
Additional Company Details
Transaction: SM31
Path: System Services Table Maintenance (View Maintenance)
Information about the companys tax deduction account number, Permanent Account number and
GIR No. allotted by the Income Tax authorities and to be used in the printing of TDS certificates
should be maintained. Tables T001I, T001J and T001Z in that order are to be maintained for these
parameters
Table T001I - Company code parameter types

The following entries are to be made in this table.
Parameter type
J_1I01
J_1I02
J_1I03
J_1I04
J_1I05
J_1I06
J_1I07
J_1I08
J_1I09
J_1I10
J_1I11
Length
15
15
25
48
48
48
48
48
48
48
48
ISO code
Name
IN
IN
IN
IN
IN
IN
IN
IN
IN
IN
IN
Tax Deduction A/c No.

PAN No.
GIR No.
Description of the person making the payment,
Address of the company
Flat/Door/Block no., length is 48 chars
Name of premises/Building, length is 48 chars
Road/Street/Lane, length is 48 chars
Area/Locality, length is 48 chars
Town/City/District, length is 48 chars
State, length is 48 chars
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Two tax codes will have to be defined for the same section with the same percentage, in
one the indicator Posting with Down payment should be selected - this should be used
for down payments and in the other tax code the indicator Posting with Down payment
should not be selected - this should be used for Invoice booking.
These parameter types are to be maintained as above only as it is these parameter types that the
TDS certificate printing and Annual returns program recognizes.
Table T001Z - Additional specifications for company code

The relevant values for the parameters entered above are to be maintained here.
Table T001J - Parameter type names

The following entries are to be made in this table.
Parameter type
J_1I01
J_1I02
J_1I03
Name
Tax Deduction A/c No.
PAN No.
GIR No.
Table T001Z - Additional specifications for company code

The relevant tax numbers of the company are maintained as values for the parameters entered
above.
8.1.2
Vendor Information
Transaction: OBT4
The text objects to define the PAN/GIR No. and the ID of vendor are to be defined here and a short
description of these objects can be entered alongside.
The values for the PAN and GIR can be filled as follows:
While defining vendor master record go to menu option Extras Texts and enter the value for the
above mentioned IDs.
The TDS printing program checks this field for entry during certificate printing.
8.1.3
Withholding Tax Code
Transaction: OBC7
The withholding tax code need to be defined in the system. When defining the tax codes
characteristics like rates, tax base amount, posting on payment etc. need to be specified. The rate
entered here should be inclusive of the surcharge rate if any.
If a concessional tax rate is to be applied for a period of time then the concessional rate should be
entered here. The validity period for the concessional rate should be entered in the vendor master.
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The maximum size of TDS section should be only 4 even though the visible length of the
field is greater than 4.
1.4.1
8.1.4
Automatic Posting
Transaction: OBYS
Using this transaction GL accounts can be assigned to the tax codes that have been defined. These
account numbers are user definable and are the ones which are used in posting of Withholding
Tax.
On the maintain accounting configuration screen select Rules, on the rules screen select Tax code
as the field on which the accounts specified are dependant. Now each GL account can be
individually mapped to the withholding tax code.
8.1.5
Withholding Tax Section Maintenance
Transaction: J1IT
Path: TDS TDS Section Maintenance
The various TDS sections ( e.g.: 194 C) need to be defined in the master tables. The certificates
can then be maintained centrally or business area-wise. If maintained centrally then only the 4
character section number should be entered under the column TDS Section.
For business area-wise maintenance the column TDS section can have entries with Section +
Business area. e.g. for business area 0001 to maintain entry for section 194C you can make an
entry 194C0001. By entering unique NRInt values you can get unique no range for each business
area.
The sections on which surcharge is applicable can be indicated here and the rate of surcharge can
also be entered. If surcharge is applicable and rate % is not entered then by default a tax rate of
10% will be applied.
8.1.6
Withholding Tax Code/Section
Transaction: J1IT
Path: TDS TDS Section - tax code reference
The tax codes need to be assigned to the TDS sections, this is done using this transactions.
The Vendor type for withholding tax purpose should be maintained here. The values allowed are A
for Advertising companies, C for Contractors and S for subcontractors. These will be used
for subsequent reporting purposes.
8.1.7
Certificate Number Range
Transaction: J1IT
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Path: Number Ranges Maintain Number ranges

The number ranges for the purpose of certificate printing can be maintained here. Separate number
range intervals can be defined for each of the groups specified as NRInt when defining the sections.
8.1.8
Recipient type
Transaction: OB97
Path: IMG Financial Accounting -> Financial Accounting Global settings -> Withholding tax ->
Basic settings -> Maintain recipient types
Maintain codes for the different types of recipients like individual, Corporates etc.
8.1.9
The recipient type has to be maintained in the vendor master of the Vendor along with his
withholding tax information, currently the values expected here are CO for company
and OT for others
Withholding tax payment due
Transaction: J1IT
Path: J1IL -> Customization -> India Localization -> TDS -> TDS payment due date maintenance
The number of days after which the payment is due has to maintained for each section and for each
type of recipient When TDS posting is done the payment due date is calculated and this is used by
challan to distinguish the payments which are due on that date.
8.2
Work Flow
Case 1:
Down payment made to a vendor and TDS is deducted at the time of payment and then the vendor
subsequently raises the invoice, which needs to be treated separately.
TDS posting on Invoice
Path: J1IL TDS TDS maintenance TDS posting Post Withholding Tax
Execute the report in test mode to display all invoices for the entered period by vendor:
To clear the Invoice 1900000002 against a down payment place the cursor on the invoice and
choose option Process Inv. Clr D/P against Inv or press F6
Select the down payment against which the invoice is to be cleared, on saving a down payment
clear document is posted. In this way all the desired invoices can be cleared one by one.
To reflect the current status of the invoice after clearing against an down payment choose
option
Process Invoice Refresh or press F7
The Invoice amount cleared, Withholding tax base amount and Withholding tax are recalculated
based on the amount of the down payment against which the invoice was cleared.
Alternatively the invoices can be cleared against the down payment by first taking a list of all the
invoices which are listed above by choosing Details Print Details option and then clear them by
choosing option
Financial Accounting Acc. Payable Document entry Down payment Clear
and then clear each invoice one by one.
On executing the report in actual mode, the entered TDS date is used as the date for the TDS
postings.
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By double clicking on the document numbers you can see the document of the TDS posting.
A manual FI posting will have to be done to transfer the amounts from the respective Withholding
tax accounts as defined in the QST line items into the TDS government payable vendor a/c and the
payment into the TDS government payable vendor a/c can be done using the option
Accounting Financial Accounting Document entry Outgoing payment Post
Case 2:
Now consider a credit memo issued against an invoice. If the payment of TDS on the invoice has
already gone then the credit memo against that invoice is not considered at all for processing. But if
the payment has not gone then Withholding tax is calculated on the memo amount and that amount
is debited from the TDS payable account.
E.g. consider an invoice that has been posted then post a credit memo with invoice reference
number given as that of the posted invoice and then do the posting in test mode, the following
message is displayed.
Run the program in actual mode to process credit memos
On executing the TDS posting in actual mode the posting takes place and the original memo
document along with the TDS posting document are shown (these documents can be viewed by
double-clicking on the document numbers).
Case 3:
Now consider if the down payments are cleared against an invoice using the option Accounting
Accounts Payable Document Entry Down payment Clear.
But if this is done after the TDS on that invoice has been calculated but before the payment of TDS
has gone to the government then again TDS payable account has to be debited by the tax amount
against that down payment clear.
Thus if a down payment clear is posted on invoice on which TDS is calculated and payment of TDS
has not gone, then in the test run following message will be displayed:
Please run the program in actual mode to adjust down-payment clears posted after TDS
calculation on respective invoice
On executing it in the actual mode the posting takes place and the down payment clear document
along with the TDS posting document are shown (these documents can be viewed by doubleclicking on the document numbers). It can be seen in the postings that the GL account associated
with the entered tax code is debited to take care of the down payment clear.
Case 4:
Reversal of original documents:
Now let us consider 2 more possibilities that may arise in case of reversal of original invoice / down
payment etc.
1. If the TDS has not been posted for that invoice/down payment. then no processing is required
and in the next run such documents are not at all considered for TDS posting.
2. If the TDS has been posted on invoice/down payment but the payment has not gone to the
government.
In this case the TDS which was booked earlier needs to be reversed too. When the TDS posting is
done for the reversal document it debits the TDS account by same tax amount as it was credited by
the original document .
In case of a credit memo the reversal of TDS document will involve crediting the TDS account.
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8.3
If B/A is entered as combination here then even for reprint, annual returns, cancellation
etc. the section should always be given as this combination only.
Challan updation
Transaction: J1IL
Path: TDS TDS challan updation
Once the deducted TDS has been paid to the government and the Challan number for this payment
received, we need to update this information for the invoices for which the deducted TDS has been
paid. Based on the selection criteria entered the invoices for which TDS posting has been done will
be displayed. User has option to select all or specific records displayed on the screen. All the
selected records are posted with the entered challan number and challan date.
This transaction can also be used to change the Challan number and date that had been updated
earlier, this can be done by entering as part of the selection criteria the Challan number and date
which is to be changed.
The actual TDS amount and the surcharge on this TDS amount are shown separately.
To handle cases where the company needs to have many TAN Numbers a facility has been
provided to input the TAN no at the time of challan updation. This TAN No will be used subsequently
for the certificates
8.4
TDS Certificates
Transaction: J1IL
Path: TDS TDS Maintenance TDS Certificates Print TDS Certificate
Only after the payment goes to the government can the TDS certificates be printed, this is checked
by the program by accepting the Challan number and Date and only those records which were
previously updated with this challan number and date will be listed in the certificate. A range of
challan numbers can be entered thus allowing for the option to print the certificate annually. The
certificate printing program uses a layout set J_1ITDSCERT. Hence if there are some changes in
the certificate format this layout set can be changed accordingly.
On execution one can get the TDS certificate for all the Invoice / down payment etc. posted for the
entered company code, fiscal year with the date falling between the posting period option and
updated with the Challan number and date. Generally certificates are printed on 7th of every month.
If the certificate is to be printed business area-wise then maintain first the sections as described
earlier, as a combination of Section + Business Area.
e.g. for B.A. 0001 and section 194C the section is maintained as 194C0001.
Thus while entering the W. Tax Section parameter here enter 194C0001. Hence the certificate can
be obtained with a unique number range per B/A.
This is only one recommendation of printing certificates Business area-wise.
Now if the preview option of the certificate is selected here then a certificate without any certificate
number is displayed on the screen. The actual number will be assigned only when the certificate is
actually printed.
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A summary of all the certificates is printed at the end. Both certificate-wise and challan-wise
summaries are provided.
Now if it is desired to have a reprint of the certificate in case there was some problem while printing
then use the menu path
Path: J1IN TDS TDS Maintenance TDS Certificates Reprint TDS Certificate.
On execution certificates with given numbers will be reprinted with DUPLICATE on top to indicate
that it is a reprint .The rest of the certificate remains the same.
In case the certificate need to be canceled due to some wrong entries or some other reason then
the option can be used.
J1IN TDS TDS Maintenance TDS Certificates Cancel TDS Certificate
8.5
TDS Certificate dispatch details
Transaction:
Path: SE38 Program J_1IDMOD Execute
This report has been provided so that details such as Date and Mode of dispatch of TDS certificates
can be maintained. Based on the selection criteria entered, all the certificates which have been
printed are displayed for update.
8.6
TDS Annual Returns
8.6.1
Annual returns for Section 194C
The annual returns is a sample returns program developed for Annual returns of section 194C.
It can be run using
Path: J1IN TDS TDS Maintenance TDS Certificates Annual returns 194C.
A new Annual returns program has been provided for section 194C
Path: SE38 Program J_1IF26C Execute
8.6.2
Annual returns for Section 194A
The Annual returns for section 194A is provided.

It can be run using
Path: SE38 Program J_1I194A Execute
8.6.3
Annual returns for Section 194D
The Annual returns for section 194Dd is also provided.

It can be run using
Path: SE38 Program J_1I194D Execute
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8.6.4
Annual returns for Section 194I
The Annual returns for section 194I is also provided.

It can be run using
Path: SE38 Program J_1I194I Execute
8.6.5
Annual returns for Section 194J
The Annual returns for section 194J is also provided.

It can be run using
Path: SE38 Program J_1I194J Execute
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The service tax applicability can be mentioned at an item level. So when an invoice
contains items which are relevant for service tax and others which are not relevant for
service tax, it is necessary to maintain different tax codes at line item level. The service
tax is computed using the sale/purchase tax code and hence service tax cannot be
computed on items for which there is a sale/purchase tax.
1.5
Service Tax
Transaction: J1IL
Path:
Service tax is a tax levied on various specified services provided to any person by specified
service providers on or after 16-10-1998 . This is applicable to all states except J&K. The service
tax collection is done by the Central board of Customs and Excise. All payments in foreign
currency are exempt from Service tax. Service tax needs to be rounded off to the nearest rupee.
The liability to collect the service tax starts with the bill. Once the bill is raised the service tax
liability need to be identified and this needs to be shown in the service tax return. But the money
need to be paid only when the payment is actually realized. The time lag between the raising of
the bill and the collection of money can be anything. In case the bill is settled at a lower amount
during final settlement then documentary evidence ( credit/debit note) should be provided and to
the same extent the service tax liability can be reduced. But in the absence of any documentary
evidence service tax need to be paid in full.
1.1
Customizing
1.1.1
Service Tax Code
Transaction: FTXP
The service tax code is an input sales/purchase tax code.
1.1.2
The service tax credit and debit condition types are part of the tax calculation procedure
linked to the country
The service tax credit has to be maintained as negative percentage and the service tax
debit percentage has to be 100% always.
Accounts
Transaction: OB40
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Using this transaction GL accounts can be assigned to the processing keys ESA and ESE .
1.2
Work Flow
Case 1: Service tax posting on Invoice

Create the invoice using the option Accounting -> Accounts Payable -> Document entry -> Invoice.
For the vendor line item enter the sale/purchase tax code SV and mark calculate tax.
If you are combining 2 amounts in one invoice and if one is not applicable for service tax then you
need to have two separate line items
The service tax liability is booked in the system during Invoicing, This need not be paid to
the government until the vendor payment is made but it is required for Service tax
returns.
If you are following Logistics-> Materials Management - > Invoice verification -> Invoice
verification then the service tax relevant items should not have any sales tax as Sales
tax and service tax are mutually exclusive. You need to have separate line items for the
services payment amount
When a payment is done for this invoice through outgoing payments or automatic payment
program, the service tax on the invoice is marked as due for payment for 25th of next month.
Case 2: Service tax on credit memo
Now consider a credit memo issued against an invoice. The service tax amount is calculated if the
service tax code is provided on vendor line item. This service tax amount is debited to service tax
payable account. The net service tax liability is reduced as a result.
When the credit memo is settled against a clearing document or outgoing payment along with the
invoice the net service tax is marked as due for 25th of next month.
Case 3:
Now consider if the down payments are cleared against an invoice using the option Accounting
Accounts Payable Document Entry Down payment Clear.
If the invoice which is being cleared has service tax then the service tax is marked as due for
payment on 25th of next month.
If the invoice being cleared has both service tax applicable and non-applicable line items
only the service tax applicable line items will be chosen for finding the tax realized .
Case 4: Reversal of original documents:

Now let us consider 2 more possibilities that may arise in case of reversal of original invoice
If the service tax has not been paid for that invoice; then no processing is required and such
documents are not at all considered for service tax posting.
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If the service tax has been posted on invoice/down payment but the payment has not gone to
the government then the net tax payable can be reduced by the same tax amount
If the invoice is reversed after the payment is made to government then it cannot be reversed.
In case of a credit memo the reversal of service tax document will involve crediting the service tax
account.
1.3
Challan updation
Transaction: J1IL
Path: SE38 Service tax challan updation (J_1ISTCH)
The payment of service tax needs to be done through a TR6 challan. The 26 services have
different account heads and that needs to be mentioned while making payments.
Once the service tax has been paid to the government and the Challan number for this payment
received, we need to update this information for the documents for which the service tax has been
paid. Based on the selection criteria entered the documents are displayed. User has option to
select all or specific records displayed on the screen. All the selected records are posted with the
entered challan number and challan date. This transaction can also be used to change the Challan
number and date that had been updated earlier, this can be done by entering as part of the
selection criteria the Challan number and date which is to be changed .
1.4
Service Tax returns
Transaction: J1IL
Path: SE38 Service tax returns (J_1IST3)
Half yearly return in Form ST-3 needs to be submitted showing the service tax liability and service
tax realized during the period.
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Archiving of Tax deduction at source (TDS)
An Archiving object J_1ITDS for the archiving of TDS documents has been provided with CIN.
This is used for archiving the data in J_1ITDS and J_1ICERTIF tables. You need to archive the
related FI/MM data before archiving this data.
2.1
Archive TDS documents
Path: J1IL TDS Archive - > TDS documents

Alternate Path : Tools -> Administration -> Administration - > Archiving
2.1.1
Archive
Create a variant for archiving the data.

Select Maintain
Enter the company code
TDS Certificate date range
TDS posting date range
Mark generate archive if you need to create archive ( in real mode )
Mark delete in test mode for the test run
Enter an optimum package size
Enter some comments
Save
Enter the user name of the person who will archive
In the test mode system will simulate archiving
In the generate option system will create the archive file
You can schedule a batch job for the archive run.
2.1.2
Delete
Archived data is not automatically deleted. The option Delete will help to delete the data from the
database once it is archived. A test run is possible for this option. This will report any
inconsistencies between the table data and archive file which can be fixed.
2.1.3
Reload
It is possible to reload the data from an archive. This is also possible to simulate in test mode
Only those archives which are marked deleted from the database can be reloaded.
2.1.4
Analyze
You can analyze the archived files using this option.
2.2
View Archived Documents
Path: J1IL TDS Archive - > View Archived documents

You can view the header data for the archived TDS documents across a number of archival runs.
Enter the vendor, business area or certificate no which you want to display
System gives details of the document
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Excise register reporting
Excise registers are generated for particular periods as a statutory requirement by excise
authorities.
These reports are printed on Dot matrix printers using pre-printed stationery.
Following are the excise registers :
1) RG23A PART I
2) RG23A PART II
3) RG23C PART I
4) RG23C PART II
5) PLA
6) RG23D
7) RG1
8) RT-12
The register printing has the following two stages :
Extraction.
Printing.
3.1
Extraction
Transaction : J2I5
Menu path : J1IL Excise Reports Extraction
(a) Using All registers will select all the registers for extraction for the given
criteria. If individual registers have to be extracted, the same have to be selected
from the Registers group box. After extraction, a popup appears showing the
status of extraction if batch option is not selected on selection screen.
(b) Selecting Last extracted dates option in Utility group box, will shown in a
Popup the last extraction date for each register.
3.2
Printing
Transaction : J2I6
Menu path : J1IL Excise Reports Print utility
(a) Using this, individual registers can been printed using sapscripts.
3.3
Re-extraction facility
Re-extraction of registers is done on confirmation by the user
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CIN 2.2B Release Notes
4.1
MM
Multiple GR for single Excise Invoice

New customizing option provided at the plant level to identify whether multiple GRs are allowed
for an excise invoice. Also customer can set whether multiple credit is allowed for a single excise
invoice. At the time of creation of GR system will allow multiple GRs. Then while availing credit
there can be an override set at material level for multiple credit. Based on this system will allow
multiple credit.
Price control
Even when the purchase order is set to have pricing date control at GR, the excise value captured
will be used to calculate the non-deductible tax.
Order price unit

When the order price unit is different from the ordering unit, excise invoice capture is possible with
order price unit. Also if the quantity in order price unit is changed in GR the subsequent adjustment
of MODVAT and valuation is taken care of.
Immediate credit on consumables and tools

A new customization indicator to check whether immediate credit can be availed on consumables
and tools. When this flag is set excise invoice verify and post will create RG23C part2 entries
and MODVAT can be availed.
Display of Part1/Part2
Utility display the RG23 Part1 and Part2 details from any transaction
Excise invoice without PO for capital goods

Excise invoice without PO has been enhance to include capital goods also. When the material
type is set automatically credit can be taken to RG23C Part2.
Display of capital goods accounting document

The capital goods transaction has been enhanced with display option and facility to display the
accounting document
57F4 utilization from AED and SED

57F4 utilization is possible from AED and SED balances also in addition to BED
Pre-printed number in 57F4 while printing

Acceptance of pre-printed 57F4 number before printing and storing the same for future reference
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Cancellation of 57F4
Facility for cancellation of 57F4 and option to re-create with the same transfer posting document
Partial Completion of 57F4

Time of removal in 57F4
Rounding off duty in 57F4
4.2
SD
Cancellation of excise invoice for other movements

Facility for cancellation of excise invoice after it has been posted and an option to reverse the
modvat utilized on the same. Option to recreate the excise invoice with the same reference
document
Inter company utilization

When multiple companies operate under same excise registration, facility to display the balances
from other company at the time of utilization and an option to utilize from the same. This will
transfer the amount from other company to the current company by an inter company transfer
and then utilize.
Additional transaction types in excise invoice for other movements for

alternate account assignment
Additional transaction types has been provided for excise invoice for other movements to facilitate
alternate suspense accounts in account determination for various types of movements.
Excise invoice selection in excise invoice for other movements

Facility of excise invoice selection from available excise invoices in other movements for duty
reversal.
New sales tax register

Sales tax register with selection based on ship-to and ship-from. Also facility to display the taxes
for each jurisdiction in addition to tax code
Minimum balance check across GL accounts during utilization

Minimum balance check enhanced to take care of situations where the same GL account is used
across several registers eg. BED and SED having the same GL account
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4.3
FI
Cost center in JV and creation of costing document

Facility to enter the cost-center in JV in account determination and creation of costing document
along with the accounting.
TDS surcharge
TDS surcharge which has been introduced by Budget 99 can be handled by defining new tax
codes with a cumulative rate. The challan and certificate printing and annual returns have been
enhanced to print the surcharge information.
TDS on one time vendor

TDS deduction for payments made to one time vendors
Payment of different assesses in separate challan

Different types of payees are identified by recipient types. This information is used by challan
updation to generate separate challans.
Adjustment of TDS amount with the tax deducted on down payment

(different rates )
When a down payment is cleared against an invoice and if the tax rate on down payment and
invoice is different facility to deduct balance tax as per the invoice has been provided.
Annual TDS certificates

Dispatch mode and date of certificates
Annual returns for 4 sections
4.4
Reporting
Extraction and printing facility for the following registers
RG23A and C Part1

RG23A and C Part2
PLA
RG23D
RG1
RT12
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4.5
Others
Customizing wizard for health check

Configurable messages
Additional authorization checks
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12.6 Computer Aided Testing Tool (CATT)

Transaction: STW1
Path: Tools -> ABAP Workbench ->Test-Test Workbench -> Test Organization -> Manage Test
Catalog
The CIN 2.2B CD contains a file with a pre-configured CIN-specific test catalog. Please refer to
the Installation Guide for information on how to install the test catalog J_1ITEST_CAT.
The online R/3 library will help you in getting familiar with the concept and use of CATT.
The execution of CATT procedures generates real data. Therefore, use CATT in
test systems only.
The CIN test catalog includes two different sets of procedures:
1) Procedures, which set up customizing and master data. These procedures will help you in
speeding up the process of creating a set of test data.
2) Application test procedures for the purchasing and sales cycles. These procedures are
configured to use the CATT-generated test master data.
A specified set of input parameter values is called a variant. Pre-configured

variants for the CIN CATT procedures are available as templates. However, you
should create your own variants to reflect your individual system configuration.
In general, CATT procedures can be run in different modes, e.g. foreground and
background. However, some CIN-CATTs must be run in foreground mode so
that mandatory input parameters can be specified while the test procedure is
executed.
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Appendices
1. Accounting Entries
Purchase Transactions
Goods receipt. For 101 and 105 movements.

Inventory raw materials a/c Dr.
GR/IR a/c
Cr.
Excise invoice verify/post.

MODVAT RG23A BED a/c Dr.
MODVAT Clearing a/c
Cr.
Invoice Verification.
GR/IR a/c
MODVAT Clearing a/c
Vendor raw materials a/c
Dr.
Dr.
Cr.
Capital goods
Goods Receipt. 101 and 105 Movement Stage.

Inventory Raw materials a/c Dr.
GR/IR a/c
Cr.
Excise Invoice Verify/Post.

MODVAT on-hold
Dr.
MODVAT Clearing
Cr.
Invoice Verification.
GR/IR a/c
Dr.
MODVAT Clearing a/c
Dr.
Vendor - Raw materials a/c Cr.
MODVAT Credit
RG23C BED a/c
MODVAT on-hold a/c
Dr.
Cr.
57F4 transactions
10% reversal of Excise

RG23 BED a/c
MODVAT Clearing
Cr.
Dr.
Adjustment Transactions
Reversal due to material written-off

MODVAT Clearing a/c Dr.
MODVAT RG23 a/c Cr.
Reversal due to material used for purposes other than production

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MODVAT RG23
a/c
Cr.
Reversal due to 57F4 not completed

Reversals
a/c Dr.
MODVAT Clearing a/c Cr. (the amount as when 57F4 was created)
MODVAT RG23 a/c Cr. (the differential amount)
Adjustments due to additional excise paid by the vendor

MODVAT RG23 a/c Dr.
MODVAT Clearing a/c Cr.
Adjustments due to TR6Challan

PLA a/c
Dr.
PLA on hold a/c
Cr.
Reversal due to Cancellation of an excise invoice

MODVAT RG23 a/c
Dr.
Excise Recovered a/c Cr.
Any other adjustments

MODVAT RG23 a/c Cr.
Tax Deducted at source
TDS posting for an Invoice

Vendor a/ c
Dr.
Withholding tax a/c Cr.
TDS posting for a Credit memo

Withholding tax a/c Dr.
Vendor a/ c
Cr.
TDS posting for a Down-payment

Vendor a/c
Dr.
Bank a/ c
Cr.
Withholding tax a/c Cr.
TDS posting on Reversal Document

Withholding tax a/c Dr.
Vendor a/c
Cr.
Sales transactions
Billing
Customer
Sales revenue
Excise paid
Sales tax
Dr.
Cr.
Cr.
Cr.
MODVAT utilization
RG23 BED a/c
Excise paid
Cr.
Dr.
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2. Down load structures

PART 1
Field
REGTYP
TRNTYP
EXGRP
SNO
SYEAR
PDATE
MAKTX
MENGE
MEINS
EXNUM
EXDAT
NAME1
ORT01
PSTLZ
EXCCD
EXCRN
EXCRG
EXCDI
EXCCO
CHAPID
P2NO
RISIND
STATUS
MBLNR
MJAHR
BWART
Length
1
4
2
10
4
8
40
13
3
10
8
35
35
10
20
20
40
20
20
12
10
1
1
10
4
3
Use
A = RG23A, C = RG23C
Transaction type
GRPO = goods receipt
Excise group
Part 1 serial number
Year of serial number
Posting date
Material description
Quantity
Unit
Excise invoice number
Excise invoice date
Vendor name
City
Pin Code
Excise code number of vendor
Excise registration number of vendor
Excise range number
Division number
Excise collectorate of vendor
Chapter id
Corresponding part II entry number
Receipt/Issue indicator
Entry status
U = Undeclared material
D = Deleted item
Material document number
Material document year
Movement type
PART 2
Field
REGTYP
TRNTYP
Length
1
4
Use
A = RG23A, C = RG23C, P = PLA
Transaction type :
57CM = 57F4 completion
57FC
= 57F4 subcontractor goods issue
57NR = Non receipt of 57F4
CAPE = Capital goods
CEIV
= Canceling the generated excise invoice
DIEX
= Differential excise posting
DLFC = Factory sale and stock transfer
GRPO = Goods receipt (raw material)
MRDY = Reversal without reference
MRRD = Reversal in case of consumption other than
production
MRWO = Modvat reversal for write of cases
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EXGRP
SNO
SYEAR
PDATE
EXNUM
EXDAT
NAME1
ORT01
PSTLZ
EXCCD
EXCRN
EXCRG
EXCDI
EXCCO
BED
SED
AED
CESS
CURR
CHAPID
P1NO
PREPRN
CVDIND
2
10
4
8
10
8
35
35
10
20
20
40
20
20
19
19
19
19
3
12
10
10
1
EXPIND
CAPIND
CERTNO
20
CERTDT
ANLN1
REMARKS
PROCES
STATUS
8
12
50
50
1
RDOC1
RYEAR1
LIFNR
MBLNR
MJAHR
10
4
10
10
4
TR6C = PLA account adjustment through TR6 challan

OTHR = Excise paid on other movements
EWPO = Excise invoice without PO
Excise group
Part II serial number
Year of the serial number
Posting date
Excise invoice number
Excise invoice date
Vendor/customer/subcontractor name
City
Pin code
Excise code number of vendor/customer/subcontractor
Excise registration number of vendor/customer/subcontractor
Excise range number (in case of credit entries)
Division number (in case of credit entries)
Excise collectorate of vendor/customer/subcontractor
BED
SED
AED
CESS
Currency
Chapter id
Corresponding part I entry number (in case of credit entries)
Preprinted excise invoice number
CVD indicator
X
= CVD
Export indicator in sales
space = Local sale
D
= Deemed export
B
= Export under bond
N
= Export without bond
Capital goods indicator
C
= Consumable
T
= Tools
A
= Assets
( for capital goods only ) In case of
consumable Intimation document number
tools
Intimation document number
assets
Installation certificate number
Intimation/Certificate date ( for capital goods only )
Asset number ( for capital goods : assets only )
Remarks
Process for 57f4
Status
R
= Reversed
space = Normal
Reference document number
Reference document year
Vendor number
Material document number
Material document year
Page 84
SAP AG
In case of part II entries for debit and credit (except for capital goods-assets), if the excise
invoice contains multiple chapter id, then the breakup of the excise value chapter id
wise is provided in the lines immediately following the part II entry. These entry have the
same part II serial number. Only the fields REGTYP, TRNTYP, EXGRP, SNO, SYEAR,
EXNUM, EXDAT, BED, SED, AED, CESS, CURR and CHAPID will have valid values.
In case of the part II credit entry for capital good-assets, after the part II entry, the breakup
of the excise value excise invoice wise is provided. These entry have the same part II
serial number. Only the fields REGTYP, TRNTYP, EXGRP, SNO, SYEAR, EXNUM,
NAME1, ORT01, PSTLZ, BED, SED, AED, CESS, CURR will have valid values.
RG23D
Field
INDCTR
Length
1
EXNUM
EXDAT
NAME1
ORT01
PSTLZ
EXCCD
EXCRN
EXCRG
EXCDI
EXCCO
MAKTX
MENGE
MEINS
CHAPID
BED
SED
AED
CURR
VBELN
PDATE
NAME1B
ORT01B
PSTLZB
10
8
35
35
10
20
20
40
20
20
40
13
3
12
19
19
19
3
10
8
35
35
10
Use
Receipt/issue indicator
R
= Receipt
I
= Issue
Suppliers excise invoice number
Suppliers excise invoice date
Vendor/Consignee name
City of vendor/consignee
Pin code
Excise code number
Excise registration number
Excise range number
Division number
Excise collectorate
Quantity
Unit
Chapter id
BED
SED
AED
Currency
Invoice ( delivery document )
Invoice date
Name of buyer
City of buyer
Pin code of the buyer
MASTER DATA
Field
WERKS
NAME1
NAME2
Length
4
30
30
Use
Plant code
Plant name1
Plant name2
Page 85
SAP AG
STRAS
PFACH
PSTLZ
ORT01
LAND1
EXCCD
EXCRN
EXCRG
EXCDI
EXCCO
30
10
10
25
3
20
20
40
20
20
Street and house number

Post office box
Postal code
City
Country
Excise code number
Excise registration number
Excise range number
Division number
Excise collectorate
RG1
Field
MANDT
EXGRP
SYEAR
SERIALN
MBLNR
MJAHR
ZEILE
BWART
MATNR
MENGE
MEINS
MAKTX
RISIND
DOWNL
DECLRD
EXPIND
REASON
RDOC1
RYEAR1
RIND1
BEDRATE
AEDRATE
SEDRATE
EXCUR
EXBAS
EXBED
EXAED
EXSED
CESS
STATUS
USNAM
CPUDT
CPUTM
AEDAT
AENAM
Length
3
2
4
10
10
4
4
3
18
7
3
40
1
1
1
1
40
10
4
1
3
3
3
5
7
7
7
7
7
1
12
8
6
8
12
Use
Client
Excise Group
Year of the serial number
RG1 serial number
Number of a material docu
Year of material document
Item in material document
Movement type (inventory
Material number
Quantity
Base unit of measure
Receipt/ Issue indicator
Download indicator
Item declared for Excise
Export type
reason for movement
Reference document 1
Reference year 1
Reference document type 1
BED percentage
Additional Excise Duty %
Special Excise Duty %
Currency
Base value for excise cal
Basic Excise Duty (BED)
Additional Excise Duty (A
Special Excise Duty (SED)
Cess amount
Register entry status
Created By
Document entry date
Time of entry
Changed on
Name of user who changed
Page 86
SAP AG
3. Checklist
Run country install program in case of fresh installation

Maintain the entries in TRWCI, TRWCI, TRWPR
Add authorization to the user profile
Activate the tax codes
Activate the default tax codes V0 and A0 used by the system
Check the account assignment for the Account keys mentioned in the tax procedure
Check the revenue account determination for the accounts specified in the pricing procedures
Run period closing program for MM if not already done.
Maintain the settings in India IMG
Check and maintain the settings in standard IMG relevant to India version
Maintain the Excise rates for the material using Excise rate maintenance
Maintain the status of the Customer / vendor using Excise rate maintenance
Maintain the condition records for pricing and output
Page 87
SAP AG
4. Taxes
JAED
A/R Add. Excise Duty
JAO1
A/P AED for Setoff
JAO2
A/P AED for Inventory
JCES
A/R CESS
JIN1
A/R Central. Sales Tax
JIN2
A/R Local Sales Tax
JIN4
A/R Addl. Sales Tax
JIP1
A/P C Sales Tax Inv
JIP2
A/P L Sales Tax Inv
JIP3
A/P Sales Tax setoff
JMO1 A/P Eduty for Setoff
JMO2 A/P Eduty for Inven
JMOD A/R Excise Duty
JSED
A/R Sp. Excise Duty
JSO1 A/P SED for Setoff
JSO2 A/P SED for inventory
JSER A/P Service tax credit
JSVD A/P Service tax credit
Tax Procedure
TAXINJ
Tax jurisdictions IN00, IN01, IN02
Tax account keys VS1, VS2, VS5, MW3, MWS
Page 88
SAP AG
5. Pricing Conditions
JAED
JCED
JCES
JEX2
JEXA
JEXS
JFCG
JFRE
JHAC
JIN1
JIN2
JIN4
JINS
JMAN
JMOD
JOC1
JOC2
JSED
JTRD
JEXC
JOCM
JCDB
JCV1
JCDS
A/R Add. Excise duty

A/R CESS
A/R CESS
A/R Basic Excise
A/R AED
A/R SED
Free - 100% discount
Freight India
Handling charges
Central sales tax
Local sales tax
Additional sales tax
Insurance (India)
Manual Excise
A/R Basic Excise
Octroi accrual
Octroi
A/R Special Exc.duty
Trade discount
A/P Manual excise
A/P Octroi
Basic customs duty
CVD
Special customs duty
Page 89
SAP AG
6.
Formulae
Condition Value
351
India: Modvat
Phase 1
352
India: Excise modvat Phase 2
353
India: SD Fact. sale
354
India: Carry tax value
355
India: Manual excise
356
India Depot sale
357
India: SD Fact. BED
358
India: SD Fact. AED
359
India: SD Fact. CESS
360
India Taxes Value 0
361
India Taxes: Value 1
362
363
364
365
India Tax: Value 5
366
India Tax: Value 6
367
India Tax: Value 7
368
India Tax: Value 8
369
India Tax: Value 9
370
Sales tax setoff calculation
371
Sales tax calculation
Condition Base Value
361
Octroi MM India
351
Sales assessable value
Data transfer
351
India: Excise split
Requirements
351
India - LST/CST det
352
India LST
Copy Requirements
310
India:Delv - Invoice
311
India:Delv Reqr itm
Page 90
SAP AG
7. Authorization Objects
J_1IFRM_TR
J_1IURG23D
J_1I57F_4
J_1IA_POSO
J_1IPRC_CH
J_1IDNLD
J_1IEXC_IV
J_1IEXC_JV
J_1IEXCJV1
J_1IFAC_SL
J_1I_IMG
J_1IEXC_OT
J_1IPLA_FC
J_1IREGS
J_1ITDS
J_1IARE_ME
J_1ICAP_GD
J_1ICAPGD1
J_1IDEP_SL
J_1IEXC_IV
J_1IEXC_RT
J_1ITAX_DS
J_1IEX_PST
J_1IEWPOCR
J_1IEWPOVP
J_1IEXPRN
J_1ITDSARC
Authorization object for Forms tracking transaction

Authorization object for Updating RG23D transaction
Authorization object for 57F4 posting transaction
Authorization object for Amend PO's SO's transaction
Authorization object for Basic price changes transaction
Authorization object for Download
Authorization object for Excise Invoice Create
Authorization object for Excise JV transaction
Authorization object for Excise JV based on transaction type
Authorization object for Factory sales transaction
Authorization object for IMG
Authorization object for Other Excise Invoice Create
Authorization object for Modvat forecast
Authorization object for RG23 issues and RG1
Authorization object for TDS transaction J1IN
Authorization object for area menu transaction
Authorization object for capital goods transaction
Authorization object for capital goods with capital goods indicator
Authorization object for depot sale transaction
Authorization object for excise invoice posting transaction
Authorization object for maintain excise rate transaction
Authorization object for tax deduction at source transaction
Authorization object for Other Excise invoice posting
Authorization object for Excise invoice without PO create
Authorization object for Excise invoice without PO Verify
Authorization object for Excise invoice print
Authorization object for Archiving
Page 91
SAP AG
8. Number Range Objects
J_1I57FC
J_1IEXCEXP
J_1IEXCLOC
J_1IINTNUM
J_1IPLA2
J_1IRG1
J_1IRG23A1
J_1IRG23A2
J_1IRG23C1
J_1IRG23C2
J_1ITDSNO
J_1IRG23D
J_1IDEPINV
57FC Number Range Object

Export excise invoice number range
Local excise invoice number range
Internally document number to be generated
PLA part II number range object
RG1 number range object
RG23A part 1 no. range object
RG23A part II number range object
RG23C part I number range object
RG23C part II number range object
Number range for TDS Certificate
Number range for RG23D folio
Depot excise invoice number
Page 92
SAP AG
9.
Text Objects
J1IA - Excise Invoice

J1IC - Capital Goods
J1IF - 57f4
J1IG - Depot Invoice Capture
J1IH - Other Adjustments
J1II - Modvat Utilization Factory
J1IJ - Depot Sales
J1IS - Other Movements Excise Invoice
J1IW - Excise invoice without PO
Page 93
SAP AG
10. User Exits
J_1I7_USEREXIT_57F4_COMPLETE
- At the time of completion of 57f4 document
J_1I7_USEREXIT_EXCISE_AFT_SAVE - After the excise header and details are written
J_1I7_USEREXIT_EXCISE_BEF_SAVE - After the excise header and details are written
J_1I7_USEREXIT_EXINV_ADDL_DATA - For excise invoice additional data
J_1I7_USEREXIT_EXINV_POFIND
- To find the purchase order and material type
J_1I7_USEREXIT_MAT_IND
- For determining whether the excise invoice type
J_1I7_USEREXIT_DEPOT_BEF_SAVE - Depot Sales
J_1I7_USEREXIT_EXGRP_DETERM - For determining the excise group in Depot
J_1I7_USEREXIT_SERGRP_DETERM - For determining the series group in Depot
J_1I7_USEREXIT_GR_VALIDATE
- Validating material document in Excise invoice
without PO
J_1I7_USEREXIT_ROUND_OFF
- Round off of the MODVAT credit
J_1I7_USEREXIT_TDS
- User exit at the beginning of TDS program
J_1I7_USEREXIT_ITEM_ADDL_DATA - User exit for validating the item additional data in
depot receipts
Page 94

Cin Customizing

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SAP AG

Country Version India

Country Version India

Jun 22, 1999.

Material number: 51006682

Country Version India

Copyright 1997 SAP AG. All rights reserved

Country Version India

Country Install Program.................................................................................................. 7

EXCISE TAX RATE MAINTENANCE..............................................................................20

Country Version India

EXCISE TAX PROCESSING........................................................................................... 23

EXCISE AND SALES TAX REPORTING........................................................................61

Sales Tax Register................................................................................................61

TAX DEDUCTED AT SOURCE (TDS).............................................................................65

Country Version India

Annual returns for Section 194A...........................................................................71

ARCHIVING OF TAX DEDUCTION AT SOURCE (TDS)................................................76

EXCISE REGISTER REPORTING..................................................................................77

Country Version India

which initial steps are required to enable localized functionality,

Country Version India

Country Install Program

Table TRWCI (FI Interface: Components Installed)

Table TRWCA (FI Interface: Active Components)

Table TRWPR (FI Interface: Processes)

Country Version India

Tax code Activation

settings - > Tax on

Country Version India

Country Version India

Customizing Using Localization IMG

Maintain Company Settings

Maintain Excise Registration

Maintain Plant Settings

Assign Excise Registration Group to Plant

Assign Excise Series Group to Registration

Define Excise Tax Condition Type

Maintain Transaction Accounts

Assign GL Accounts to Transaction Types and Excise Group

Country Version India

Alternate Sub-transaction Accounts

3.1.10 Maintain Minimum Balance

3.1.11 Determine movement types relevant for excise

3.1.12 Assign Excise Invoice Billing Type to Delivery Type

3.1.13 Define Tax Applicability Code

3.1.14 Define Form Types

3.1.15 TDS-Section Tax Code Reference

Country Version India

3.1.16 TDS Section Maintenance

3.1.17 TDS Payment due date maintenance

3.1.18 Define Text Objects

3.1.19 Maintain Number Range

57FC number range object

Country Version India

3.1.20 Maintain Sap-script layouts

Note : CC : Company Code

3.1.21 Message type configuration

Customizing Using Standard IMG

Country Version India

3.2.1.1 Tax procedure

3.2.1.1.1 Tax codes

3.2.1.1.3 Service tax SV

Country Version India