Beginners Guide To Sap Cin Taxation

Hand Book for SAP Taxation-India
1

Author : Sundar Krishnan
Doc Code : SAP-Taxation-India
Book For : SAP FI-MM-SD CIN Consultants
Language : English
SAP : ECC 6.0

2

AGENDA
OBJECTIVE
GLOSSARY
BACKGROUND CIN
INTERFACE BETWEEN SAP AND CIN
INDIAN LOCALISATION COVERAGE
CONFIGURATION
FI-CIN, MM-CIN, SD-CIN
PROCESSES IN SAP WITH CIN
PROCUREMENT
SALES
FINANCE
REPORTS
OBJECTIVE
To enlighten the participants on country version
India (cin) and the various requirements which are
to be completed under the Indian statute.

How cin interfaces with sap sd, mm and fi
processes and meets the report requirements .

At the end of the presentation , each participant
will have a fair knowledge of the requirements and
interfaces of cin with sap.

3

GLOSSARY
CIN - COUNTRY VERSION INDIA
INPUT TAX -Tax that is charged by the vendor.
A claim for refund of the deductible portion of
input tax can be submitted to the tax authorities
OUTPUT TAX -Tax levied on customers at all
levels of production and trade.
Output tax represents a tax liability.
SERVICE TAX - Tax levied on the customer on
services specified by the Government.
DEPOT - Depot is a plant where the material is
stored and sold. There is no manufacturing activity
at the depot. The depots when registered with the
excise authorities can pass on the Modvat / cenvat
benefits to the customer.
EXCISE DUTY (BED) - A quantity-based tax
which must be paid when a dutiable material is
moved from a duty-free (bonded) location to a
duty-paid (unbonded) location or the customer.
Also known as excise tax. The excise duty is based
on the quantity / Value of material moved.
AED Additional Excise duty is a duty which is
calculated over and above the Excise Duty payable
on the material.
SED Special Excise Duty is an additional duty
levied on certain materials depending on the
characteristics of the material. The statute specifies
these materials.
CVD Countervailing duty is a levy charged on
the imports of materials in lieu of excise duty.

4

CENVAT Central Value Added Tax. The tax is
levied on the difference between the output and the
input value. This is also referred as MODVAT.
CESS Cess is a tax imposed for a specific
purpose under different acts with reference to
certain goods. Cess is levied at the time of removal
of goods from the factory.
OCTROI A levy payable on the material to the
local authorities.
NCCD National calamity Contingent Duty. This
tax is a special purpose tax levied for prescribed /
scheduled product announced by the Finance
ministry of India. This tax is cenvatable.
Purchase Tax This is a tax levied by some states
when the manufacturer received a material from
the out side state has to pay the purchase tax.
Service Tax The service provider who has the
registration with the Central Excise can collect the
tax for the service provided. This is also
cenvatable and it can be utilized for payment
excise duty or payment of service tax.
VAT Government of India introduce the Value
Added Tax from April 2005. As the first stage, it is
removing various sales tax slabs. It is the modified
version of Local sales tax and it is cenvatable.
Education Cess - Additional tax for the
improvement of the regional Education introduced
in India union budget in 2005.
Higher Secondary Education Cess - Additional
tax for the improvement of the regional Higher
Education introduced in India union budget in
2007.

5

ASSESSABLE VALUE - Denotes the value of
goods that you have manufactured in-house at the
price as assessed by an authorized auditor.
SETOFF A certain percentage of input tax which
is refunded by the government to the
manufacturer. This refund does not form part of
material cost
CHAPTER ID All materials that are required for
manufacturing and subsequently those which are
manufactured, are classified under the Central
Excise Law into chapters. These chapters are
further subdivided into headings and subheadings,
which together form the chapter ID. Chapter ID
721618.10 is an example.
INTERSTATE TRANSACTIONS - A transaction
where the goods / material are traded between two
different states.
CONCESSIONAL TAX FORMS The
Government announces tax concessions in excise
and taxes on sales and purchase. This can be
availed by submitting the forms prescribed by the
Government. E.g C form , ARE-1, ARE-3 , CT1,
CT2
TDS - Tax deducted at source ( Withholding tax)
is a form of indirect taxation deducted at the
beginning of the payment flow. Generally, an
amount is withheld and paid over or reported to
the tax authorities on behalf of (as opposed to by)
the person subject to tax, the exception being self-
withholding tax.
If a withholding tax exemption is available,
withholding tax is not withheld.

6

REGISTERS The registers are the books
prescribed having specific format under the statute
e.g RG23A,RG23C,RG23D,RG1and PLA
RETURNS The prescribed forms having a
specified format under the statute e.g.ER-1,
57AE,ANNUAL RETURN FOR TDS, Quarterly
EFILE.

BACKGROUND
FIRST VERSION DEVELOPED IN 1996 IN
RESPONSE TO NEEDS OF INDIAN
CUSTOMERS
STANDARD PRODUCT SUPPLIED BY SAP AS
AN ADD-ON
FROM 4.70 IT IS ADDED IN THE STANDARD
PACK
CONFIRMS TO SAP DEVELOPMENT
STANDARD (LOOK AND FEEL ETC)
SUPPORTED BY SAP DEVELOPMENT LAB AT
BANGALORE
ALL BUDGET 2009 CHANGES
INCORPORATED

7

CIN INTERFACE WITH SAP

COUNTRY VERSION INDIA INSTALLATION
COPIES THE FOLLOWING (UPTO 4.6C) (TCODE O035)
STANDARD INDIA TEMPLATES
TAX PROCEDURE (TAXINJ / TAXINN)
CONDITIONS EXCISE, TAXES ON
SALES & PURCHASE,
SERVICE TAX, CVD ETC
TABLES , FUNCTION MODULES , NO.RANGE
OBJECTS, CUSTOMER EXITS

NOTE: DONT RUN THIS O035 IN THE
ROLEOUT PROJECTS. FOLLOW THE OSS
NOTE:899096 &719154

8

INDIAN LOCALISATION COVERAGE
COVERS THE FOLLOWING
CENTRAL / LOCAL SALES TAX / VAT
SALES TAX SETOFF
PURCHASE TAX
CONCESSIONAL TAX FORMS
SERVICE TAX INPUT/OUTPUT
OCTROI
BASIC / ADDITIONAL / SPECIAL
EXCISE DUTY/ADDITIONAL DUTY ON
CUSTOMS/CESS/EDUCATION CESS &
NCCD/HIGHER EDUCATION CESS
MAINTENANCE OF RATES ON
VENDOR CLASS
MAINTENANCE OF RATES AS
PERCENTAGE & AMOUNT
UTILISATION OF MODVAT
MONTHLY PAYMENT
CVD ( IMPORTS)
SUB-CONTRACTING
SUB-CONTRACTING CHALLANS
RECONCILIATION OF QUANTITIES
MAINTENANCE OF 57F4 REGISTER
MODVAT
UPDATING OF PART-I REGISTER FOR
QUANTITY
UPDATING OF PART-II REGISTER FOR
VALUE
UPDATING OF RG23D REGISTER FOR
DEPOT
PRINTING OF EXCISE REGISTERS
PART-I / PART-II REGISTERS
RG1 REGISTER
RT12 / ER1 RETURN
PLA REGISER
FACILITY FOR DOWNLOAD

9

EXTENDED WITHHOLDING TAX
WITHHOLDING TAX ON DOWN PAYMENTS /
INVOICES / PROVISIONS
ACCUMULATIONS
MULTIPLE TAX LINE ITEMS IN ONE INVOICE
CALCULATION ALTERNATIVES (GROSS, NET,
OFFSET)
ROUNDING OPTIONS
PAYMENT DUE DATES BY BUSINESS PLACE
CHALLAN UPDATE AND ACCOUNT CLEARING
SURCHARGE ON WITHHOLDING TAX
ECS AND HECS CALCULATION.
CERTIFICATE NUMBERING FOR DIFFERENT
SECTIONS / BUSINESS PLACE
CERTIFICATE PRINTING WITH CUSTOMISABLE
LAYOUT
QUATERLY RETURNS FOR VARIOUS SECTIONS OF
INCOME TAX ACT
PROVISIONAL ACCOUNTING FOR SERVICES.
CHEQUE NO PRINTING WITH CERTIFICATE
PAN NO OF VENDOR/CUSTOMER IN THE
CERTIFICATE
E-FILING.

10

CONFIGURATION
Country India Version [FI-CIN]

Table of Content

CONFIGURING TAX PROCEDURE TAXINN

1) Define Tax Procedures

a) TAXINN
b) TAXINJ only procedure
c) Assign Country to Calculation Procedure
d) Activate Country Version India for Specific Fiscal
Years
e) Defining Tax Codes for Sales and Purchases

2) Define Access Sequence.

a) JTAX
b) JST1

3) Define Condition Types

a) MM Excise condition types
b) SD Condition Types
c) Service Tax Condition Types

4) Checking and Changing [Account Key] Settings for
Tax Processing

5) Define Tax Accounts

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Configuring Tax Procedures
Tax on Sales/Purchases
The taxes on sales/purchases include input tax, output tax, acquisition
tax and additional taxes.
In addition to tax codes, percentage rates and tax accounts, you have to
specify whether the cash discount amount reduces the tax base amount,
depending on the company code. This reduction is, for example, possible
in Belgium but not in Germany.
The following sections describe the specifications you must make for
calculating taxes on sales/purchases.
1. Check Calculation Procedure /Defining Tax
Procedures
Transaction
code
OBQ3
IMG menu Financial Accounting (New) Financial
Accounting Global Settings (New) Tax on
Sales/Purchases Basic Settings Check
Calculation Procedure
In this activity, you can check and, if necessary, change existing
procedures for tax calculation.
Standard settings
Calculation procedures containing the necessary specifications for the
calculation and posting of taxes on sales/purchases have already been
defined in the standard SAP system for certain countries. Every calculation
procedure groups several tax types together into a condition type (for
example, output tax or input tax) in the calculation procedure, and
determines calculation rules for it.

12

The calculation procedure determines for which amount the individual
condition types are to be calculated. This can be the base amount (total of
the expense items and the revenue items) or a subtotal. The entry in
column FrmLvl, determines for which amount tax is calculated.
Note
In this activity, the condition types for the check and the possible change
provided in the standard system are also displayed. Here, for example, the
condition calculation rule, or for which base amount the tax is calculated is
determined (= condition type).
Recommendation
If possible, do not change the condition types and calculation procedures
provided in the standard system. Only check the standard condition types
and calculation procedures regarding whether you can use them for your
requirements. If necessary, make changes.
Activities
If you cannot use the standard settings, change the condition types and
calculation procedures delivered to meet your requirements.

Double Click on Define Procedures

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Default values :
Usage : Usage of the condition table
Determines for which area the condition is used (for example, pricing or
output).
Application
Subdivides the usage of a condition (for example, pricing) for use in
different application areas (for example, sales & distribution or
purchasing).

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Procedure (Pricing, Output Control, Acct. Det.,
Costing,...)
Specifies the conditions that are allowed for a document and defines the
sequence in which they are used.
Example
Procedures are used, for example, in the following applications:
Pricing in sales and distribution
Applying overhead in Product Costing (costing sheets) and for
CO internal orders
Calculating accrued costs in Profitability Analysis
Output control (printed confirmations, EDI messages, electronic
mail)
Account determination
Calculating taxes on sales/purchases
Calculating accruals in Cost Center Accounting
Pricing for resource planning

15

a) TAXINJ PROCEDURE
Select the Procedure TAXINJ
Click on Control Data in Dialog Structure
Window

16

TAXINJ PROCEDURE CONTROL
VALUES

(PENDING)

17

b) TAXINN PROCEDURE

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TAXINN PROCEDURE CONTROL VALUES

(PENDING)

Field Explanations:
Step number
Number that determines the sequence of the conditions within a
procedure.
Condition counter
Access number of the conditions within a step in the pricing procedure.
During automatic pricing, the system takes into account the sequence
specified by the counter.
Condition Type
The condition type is used for different functions. In pricing, for example,
the condition type lets you differentiate between different kinds of discount;
in output determination, between different output types such as order
confirmation or delivery note; in batch determination, between different
strategy types.
Description
From Ref. Step for Percentage Conditions
Condition step, the value of which is the basis for percentage surcharges.
If you specify a to reference step at the same time, the condition values of
the two steps specified and the conditions values of the steps in between
are totalled. In this case, percentage surcharges are calculated on the
basis of the total.

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Example:
Level CType Description FromSt ToSt ActKy
10 A-B1 Wages
20 A-B2 Salaries
30 A-B3 Overtime/Wages
40 A-Z1 Vacation bonus 10 30 E11
The surcharge for step 40 is added to the total of steps 10 to 30.
To reference step (for percentages)
Condition step up to which the condition values of the previous steps are
totalled. Percentage surcharges are calculated on the basis of the total.
If you specify a from reference step at the same time, the condition values
of the two steps specified and the condition values of the steps in between
are totaled.
Example:
Step CType Description FromSt ToStep AcctKey
10 A-B1 Wages
20 A-B2 Salaries
30 A-B3 Overtime/Wages
40 A-Z1 Vacation bonus 10 30 E11
The surcharge for step 40 is added to the total of steps 10 to 30.

20

Condition determined manually
Use
Conditions, that are given this indicator in the pricing procedure, are only
included in determination (price determination, output determination, batch
determination) either if they are entered manually, for example, on the
condition overview screen in Pricing or if they are transferred from an
external process, such as costing.
Condition is mandatory
Indicates whether the condition is mandatory when the system carries out
pricing using this pricing procedure.
Example
If, for example, you always want to include a tax condition (VAT or sales
tax) during pricing, you can set this indicator for the appropriate tax
condition type.
Definition: pricing procedure
Sales and Distribution (SD)
A rule type for pricing.
The pricing procedure defines the conditions permitted for a document and
the sequence in which the system takes these conditions into account
during pricing.
A standard pricing procedure is defined in the standard SAP system. It
contains conditions most commonly used. These include material prices,
discounts, and surcharges, such as freight, or tax.

21

Profit Center Accounting (EC-PCA)
A pricing procedure defines how values posted in the SAP system are
calculated.
A pricing procedure can consist of the following types of rows:
Base rows, which contain the amount or quantity to which
overhead is applied
Calculation rows, which contain a percentage rate to be applied
to the base lines
Totals rows, which contain a sum of base amounts and calculated
amounts
Pricing procedures are used in Profit Center Accounting to calculate
transfer prices.
Condition is used for statistics
This indicator causes a surchage or discount to be set in the document
statistically (that is, without altering the value).
Print ID for condition lines
Controls issue of condition lines when printing documents such as order
confirmations or invoices.
Use
In releases previous to 4.0, the following print indicators are available :
' ' : Condition line is not printed
'X' : Condition line is printed at item level

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'S' : Condition line is printed in totals block
The following standard logic is set out for these printing indicators:
o Item POS of the last condition line is determined with 'X'.
o All condition lines that contain an item smaller than POS
in the pricing procedure are only printed if print
indicators 'X' or 'S' are set.
o All condition lines that contain an item larger than POS
in the pricing procedure, that come before the first tax
condition line and which have a non-statistical VAT
condition, receive printing indicator 'S'. The same
applies for condition lines that contain an item larger
than POS in the pricing procedure, that come after the
first tax condition line and an active non-statistical VAT
condition.
o Condition lines that represent a tax condition type are
always printed in totals blocks with print indicator 'S' (set
internally or externally).
o Condition lines that represent a condition type that is not
a tax condition type are only printed with print indicator
'S' (set externally or internally) if the condition value of
the condition line is not zero. Condition lines that do not
represent a condition type (i.e. subtotals) are only
printed with print indicator 'S' or 'X' (set externally or
internally) if the condition value of the condition line is
different from the condition value of the previous
condition line in the pricing procedure.
To provide a better overview of this process, 8 more print parameters are
available as of Release 4.0. These print indicators cannot, however be
mixed with the three previous print indicators ' ', 'X' and 'S' in the pricing
procedure. This means that the new indicators are only taken into account
if a no condition lines in the pricing procedure contain printing indicators 'X'
or 'S'.

23

The new printing indicators have the following settings, and corresponding
influence on processing.
o 'A' : in total: general
o 'B' : in total: if value <> zero
o 'C' : in total: if value <> value of predecessor
o 'D' : in total: if value <> zero and value <> value of
predecessor
o 'a' : at item : general
o 'b' : at item : if value <> zero
o 'c' : at item : if value <> value of predecessor
o 'd' : at item : if value <> zero and value <> value of
predecessor
Condition subtotal
Controls whether and in which fields condition amounts or subtotals (for
example, a customer discount or the cost of a material) are stored.
Use
If the same fields are used to store different condition amounts, the system
totals the individual amounts.
Example
These condition amounts or subtotals are used as a starting point for
further calculations. You may, for example, want a subtotal of all the
discounts included in the pricing of a sales order.

24

Requirement
If the requirement is fulfilled (SY-SUBRC = 0), then output determination
also takes into consideration output type or the access sequence, for
which the requirement has been specified.
Examples
A possible requirement would be, for example, that a difference should be
made between document currency and local currency .
Definition: message determination
Message Control (CA-GTF-BS-MC)
An object that checks whether the application data (for example, data
determined in Customizing) corresponds to the condition records.
If this is the case, one or several messages are "found," which can then be
processed (for example, sent electronically).
The condition records are searched for according to a predefined hierarchy
in message determination.
Condition formula for alternative calculation
type
Alternative formula to the formula in the standard system that determines a
condition.
Alternative formula for condition base value
Formula for determining the condition basis as an alternative to the
standard.

25

Example
An absolute header discount is, for example, distributed in the standard
system according to the cumulative value of the items.
If the system, however, distributes the absolute header discount according
to volume, a header discount of $30 results in the following discounts:

Item Value Volume Discount
Stand. disc. Volume disc.
1 $1000 2 cbm $20 $10
2 $500 4 cbm $10 $20
Account key
Key that identifies different types of G/L account.
The account key enables the system to post amounts to certain types of
revenue account. For example, the system can post freight charges
(generated by the freight pricing condition) to the relevant freight
revenue account.
Account key - accruals / provisions
Key which identifies various types of G/L accounts for accruals or
provisions.
With the aid of the account key, the system can post amounts to certain
types of accruals accounts. For example, rebate accruals which are
calculated from pricing conditions can be posted to the corresponding
account for rebate accruals.

26

c) Assigning Country to Calculation Procedure
1ransact|on code S8C
IMG menu lloooclol Accoootloq (New)
lloooclol Accoootloq Clobol 5ettloqs
(New) 1ox oo 5oles/lotcboses
8oslc 5ettloqs
Asslqo coootty to colcolotloo ltoceJote

Country Key
The country key contains information which the system uses to check
entries such as the length of the postal code or bank account number.
The two-character ISO code in accordance with ISO 3166, which is
delivered by SAP as a default, is usually used.
It could also be the vehicle license plate country-code or a typical country
key, for example, in Germany the Federal statistics office key.
The country keys are determined at system installation in the global
settings.
Since the country key does not have to correspond to the ISO code in all
installations, programs that differ according to certain values of the country
key cannot query the country key T005-LAND1, but have to program
based on the ISO code T005 INTCA.

27

Costing,...)

d) Activating Country Version India for Specific
Fiscal Years
Transaction code SPRO
Sales/Purchases Basic Settings India
Activate Country Version India for Specific
Fiscal Years

Component in ACC Interface
This field defines an SAP interface component that you can activate,
deactivate, or delete in the accounting interface.
To-year
Fiscal year up to and including which the transaction applies.

28

Indicator: Active
Use
Indicates whether a change status is active or not. If you mark this
indicator, the engineering change is relevant for requirements planning
and delivery.
Procedure
If you enter both a delivery date and serial number here, the system
automatically sets this indicator to "active".
However, you may want to enter several material numbers for a certain
delivery date, but decide later which serial numbers to activate. In this
case, simply unmark the indicator.

29

e) Defining Tax Codes for Sales and Purchases
Sales/Purchases Calculation Define Tax
Codes for Sales and Purchases
Define Tax Codes for Sales and Purchases
Use
You have to define a separate tax on sales/purchases code for each
country in which one of your company codes is located.
Each code contains one or more tax rates for the different tax types.
If you have to report tax-exempt or non-taxable sales to the tax authorities,
you need to define a tax rate with the value 0.
Note
Do not delete or change any taxes on sales/purchases codes and their
definitions as long as items with these codes exist in the system.
Otherwise, the SAP system displays the tax amounts with incorrect tax
rates in the corresponding reports and determines incorrect amounts
during a tax adjustment for payment transactions.
Standard settings
SAP supplies a tax calculation procedure for each country. The procedure
comprises a list of all common tax types with rules for tax calculation. In
addition, example tax codes are defined for some countries.
Activities

30

1. Check the standard tax codes for your country. Add further tax
codes, if necessary.
2. Ensure that tax accounts are defined for the automatic posting
of taxes.
Notes on transporting tax codes
When tax codes are transported, the tax rates of the tax codes are
transported using auxiliary table T007V. Logical transport object FTXP is
used to transport the definition data of the tax code from table T007A and
the language-dependent name to table T007S.
The tax accounts for the tax codes (table T030K) are not transported.
The internal jurisdiction codes are also not transported.
The transport of tax codes between systems or clients consists of two
steps:
1. Step:
Export tax codes from source system or source client
2. Step:
Import tax codes into target system or target client
Export
1. In the source system or client, in Customizing for the Financial
Accounting Basic Settings, choose Tax on Sales/Purchases ->
Calculation -> Define Tax on Sales and Purchases Code.
2. Choose Tax Code -> Transport -> Export.
3. Assign the export to the relevant transport request and make a
note of the request number.
4. Select and save the tax codes to be transported.
5. Make sure that the selected tax codes have the transport
number in table T007V.
To check the table, in the SAP menu choose Tools -> ABAP
Workbench -> Overview -> Data Browser.
Enter the table name. The tax codes are in the MWSKZ fields, the
tax jurisdiction codes in the TXJCD fields.
6. Arrange the transport of the request to the target system.

31

To transport the request, in the SAP menu choose Tools -> ABAP
Workbench -> Overview -> Workbench Organizer -> Environment
-> Customizing Organizer.
Import
1. Make sure that the transported tax codes are recorded in table
T007V of the target system or target client.
2. In the source system or client, in Customizing for the Financial
Accounting Basic Settings, choose Tax on Sales/Purchases ->
Calculation -> Define Tax on Sales and Purchases Code.
3. The tax codes should have been created in the target system
without a tax percentage rate by the import.

Otherwise you can do this manually:
In the target system, create the tax codes that do not exist there.
Create the tax codes completely, but without tax percentage
rates.
If you use internal systems in company codes in the USA or
Canada, the relevant tax jurisdiction codes should also exist. You
make the settings for the tax jurisdiction code in Customizing for
Financial Accounting Basic Settings under Tax on Sales and
Purchases -> Basic Settings -> Define Tax Jurisdiction Codes.
4. Choose Tax Code -> Transport -> Import.
5. Check the proposed values for the transport request and
country.
6. Run the import.

32

Choose Country IN.

Tax codes as per Client / customer requirements be created.
One for Input nil tax code and another for Out put nil tax code.
Note: Dont maintain any % in any condition here.

33

34

Some Example Tax codes :
1ax Code uescrlpLlon
A0 CuLpuL vA1-0
A1 CuLpuL vA1-1
A4 CuLpuL vA1-4
A8 CuLpuL vA1-8
AC CuLpuL vA1-12.3
Au CuLpuL vA1-13
Al CuLpuL vA1-13
AC CuLpuL vA1-16
Ak CuLpuL vA1-20
A CuLpuL vA1-23
AC CuLpuL vA1-26
Au CuLpuL vA1-30
AZ CuLpuL vA1-33
80 CuLpuL vA1-0 on oLher sales
83 CuLpuL vA1-38
88 CuLpuL vA1-46
8 CuLpuL vA1-60
8v CuLpuL vA1-23.3 speclal raLe
8W CuLpuL vA1-28.73 speclal raLe
8x CuLpuL vA1-0 on consgL/branch Lrfer wlLhln sLaLe
8? CuLpuL vA1-0 on consgL/branch Lrfer wlLhln sLaLe
8Z CuLpuL vA1-0 on sales Lo local agenLs
C0 CuLpuL CS1-0 (C-form)

35

CA CuLpuL CS1-10
Cu CuLpuL CS1-0 on sale Lo governmenL (u-form)
CL CuLpuL CS1-0 on sale ln-LranslL (L-l form)
Cl CuLpuL CS1-0 on lnLersLaLe consgL/branch Lrfer
CC CuLpuL CS1-0 on sale ln-LranslL (L-ll form)
CP CuLpuL CS1-0 on deemed exporL (P form)
Cl CuLpuL CS1-0 on sale Lo SLZ (l form)
Cn CuLpuL CS1-0 (no form)
Cx CuLpuL CS1-0 on exporL
L0 CuLpuL servlce Lax-0
LC CuLpuL servlce Lax-12.36
L0 lnpuL 0Lxclse no-cr+0CS1(no form)
L1 lnpuL 8.24Lxclse no-cr+0CS1(no form)
L2 lnpuL 16.48Lxclse no-cr+0CS1(no form)
L6 lnpuL 0Lxclse no-cr+0CS1(C-form)
L7 lnpuL 8.24Lxclse no-cr+0CS1(C-form)
L8 lnpuL 16.48Lxclse no-cr+0CS1(C-form)
LC lnpuL 0Lxclse no-cr+1CS1(C-form)
Lu lnpuL 8.24Lxclse no-cr+1CS1(C-form)
LL lnpuL 16.48Lxclse no-cr+1CS1(C-form)
Ll lnpuL 0Lxclse no-cr+2CS1(C-form)
L! lnpuL 8.24Lxclse no-cr+2CS1(C-form)
Lk lnpuL 16.48Lxclse no-cr+2CS1(C-form)
LC lnpuL 0Lxclse no-cr+3CS1(C-form)
L lnpuL 8.24Lxclse no-cr+3CS1(C-form)
LC lnpuL 16.48Lxclse no-cr+3CS1(C-form)
Lu lnpuL 0Lxclse no-cr+4CS1(C-form)
Lv lnpuL 8.24Lxclse no-cr+4CS1(C-form)
LW lnpuL 16.48Lxclse no-cr+4CS1(C-form)

36

M0 lnpuL 0Lxclse no-cr+0CS1(l-form)
M1 lnpuL 8.24Lxclse no-cr+0CS1(l-form)
M2 lnpuL 16.48Lxclse no-cr+0CS1(l-form)
M6 lnpuL 0Lxclse no-cr+0CS1(P form)
MC lnpuL 0Lxclse no-cr+10CS1
Mu lnpuL 8.24Lxclse no-cr+10CS1
ML lnpuL 16.48Lxclse no-cr+10CS1
Ml lnpuL Laxes on lmporLs
n0 lnpuL 0Lxclse no-cr+0vA1-nCC (8u)
n1 lnpuL 0Lxclse no-cr+0vA1-CC (8u)
n2 lnpuL 8.24Lxclse no-cr+0vA1-nCC
n3 lnpuL 8.24Lxclse no-cr+0vA1-CC
n4 lnpuL 16.48Lxclse no-cr+0vA1-nCC
n3 lnpuL 16.48Lxclse no-cr+0vA1-CC
n6 lnpuL 0Lxclse no-cr+1vA1 credlL-nCC
n7 lnpuL 0Lxclse no-cr+1vA1 credlL-CC
n8 lnpuL 8.24Lxclse no-cr+1vA1 credlL-nCC
n9 lnpuL 8.24Lxclse no-cr+1vA1 credlL-CC
nA lnpuL 16.48Lxclse no-cr+1vA1 credlL-nCC
n8 lnpuL 16.48Lxclse no-cr+1vA1 credlL-CC
nC lnpuL 0Lxclse no-cr+4vA1 credlL-nCC
nu lnpuL 0Lxclse no-cr+4vA1 credlL-CC
nL lnpuL 8.24Lxclse no-cr+4vA1 credlL-nCC

37

2. Defining /Maintaining Access Sequence
Settings
Transaction code OBQ2 / OBYZ
Sales/Purchases Basic Settings Check
Calculation Procedure

Double Click on Access Sequences
When we use OBYZ

38

DOUBLE CLICK ON ACCESS SEQUENCES

Enter
Caution: The table is cross-client
Message no. TB113

39

Diagnosis
You are in the process of maintaining a cross-client table. You are using
the standard table maintenance screen here, which is frequently used to
maintain client-specific Customizing entries. This message serves to warn
you that each change you make will have an effect on all other clients in
the system.
System Response
You have the authorization required for cross-client maintenance.
Procedure
Think carefully about the effect of your changes. Due to logical
dependencies between client-specific Customizing and applications data
on the one hand and cross-client Customizing data on the other hand,
changing or deleting cross-client data could result in inconsistencies.
Therefore such changes should be carefully planned and coordinated,
taking all the clients in the system into consideration.

40

Access sequence
With the access sequence you define
the condition tables used to access the condition records
the sequence of the condition tables
which field contents are the criteria for reading the tables
Description

41

Select the Access Sequence and double click
on Accesses in Dialog structure window.
JTAX ACCESS SEQUENCE

42

Access sequence - Access number
Indicates the number of the access within the access sequence.
Condition table
A combination of fields that defines the key of a condition record.
For each condition type in a pricing procedure, you define an access
sequence. The access sequence tells the system where to look for
relevant condition records for a particular condition type (a rebate for a
specific customer, for example). Each access in the access sequence
refers to a condition table. The fields defined in the table (the key) help the
system to locate valid condition records.

Procedure
When you create a condition table, you specify one or more target fields as
the table key. You must also tell the system where to find the value for
each target field. You do this by specifying source fields. The source fields
are usually the same as the target fields, but they can differ. For example,

43

if the target field "Customer" is part of the key, you can specify that the
system uses "Ship-to party" as the source field and takes the value from
there.
Explanatory short text
This text is displayed when you generate reports or call documentation, for
example
Requirement
If the requirement is fulfilled (SY-SUBRC = 0), then output determination
also takes into consideration output type or the access sequence, for
which the requirement has been specified.
Examples
A possible requirement would be, for example, that a difference should be
made between document currency and local currency .
Indicator: Exclusive condition access
Controls whether the system stops searching for a record after the first
successful access for a condition type within an access sequence.

44

Select the Access Number and Double click on Fields in
Dialog Structure window.

45

46

47

JST1 ACCESS SEQUENCE [FIELD
EXPLANATIONS REMAIN SAME]

48

49

50

Field for condition table
Name of the field from the condition record.
Definition: condition record
Sales and Distribution (SD)
Data record with input and output values for a task.
The condition record is created or changed with condition record
maintenance and selected in the determination process.
The output values are dependent on chosen input values (for example,
customer, customer group, product) and are valid for a certain time period.
A condition record can, for example, contain a specific free-goods discount
for a particular product quantity, or a specific discount for a particular
business partner.
Message Control (CA-GTF-BS-MC)
A data record whose key fields display the requirement (condition) under
which the message is found.
The other fields describe the message. Therefore, if one of the data
records transferred by the application corresponds to these key fields, the
message is found and can be processed (for example, in print form or as
an electronic message).
Definition

51

The symbols are used to display how the document data is used in the
condition access and how the data determined in the access is transferred
back to the document.
Arrows indicate the direction of the data transfer, the equal sign stands for
an access with a direct value. The tools indicate that the data transfer must
be ensured when setting up pricing by adapting the system using formulas
and requirements.
The green LED indicates automatic processing and a red LED marks a
line, where data for correct processing is missing.
Table name of the document structure
Specifies an internal table in which condition information about documents
is stored.
Table field for document structure
Determines the data dictionary characteristics for new fields in data
dictionary structures.
Use
Reference fields are necessary for the generation of data dictionary
structures for conditions and information structures. A reference structure
and a reference field must always be entered.
Long Field Label
Definition
One of the following:
- Short field label
- Medium field label
- Long field label
Can be assigned as prefixed text to a screen field referring to the ABAP

52

Dictonary. The text is displayed on the screen in the logon language of the
user (if the text was translated into this language).
A heading can be defined to output the field values in lists. This heading is
automatically included in the list header row, in the logon language.
Spec. Val. Source
Value which the system automatically assigns to a field when it accesses
the condition record.
Dependencies
A field can contain either the value of the source field or the value of a
constant (a direct value).
Characteristic: Initial value allowed
The initial inicator has two functions within Customizing for access
sequences. Firstly, it controls that the system does not access the
condition if the field in the document header/item is blank or 0. Secondly,
during automatic return transfer of data that were determined in the
access, it allows an initial value to be returned.
Processing type in access
The processing type determines how the corresponding field is used for
the condition access. A field can be marked as belonging to the fixed/free
key part or else as not relevant for the access.
Fields that are defined as data fields for the definition of condition tables
are automatically marked with an access type.
Dependencies
The processing type influences processing for fields in an access

53

Characteristic Values
Definition
This valuation describes a priority for the characteristics which can be
used as fields when you create condition tables or document fields for
pricing. You can enter values from 01 (very high) to 99 (very low).
The valuation controls how the system selects from the condition records
determined from an access with a free key part. The more fields that are
filled with a high priority in the key of a condition record, the more likely it is
to be used for the document.
If no two fields have the same value, then the access is guaranteed to
determine exactly one condition record.
3. Defining condition Types
Transaction code OBQ1
IMG menu Financial Accounting (New) Financial Accounting
Global Settings (New) Tax on Sales/Purchases
Basic Settings Check Calculation Procedure

Double click on Define Condition Types

54

Condition Type
strategy types
Condition type Name
Condition Class Description
Enter text here that best describes the module.
Calculation type Description
Enter text here that best describes the module.

55

MM Excise Condition Types [ Access
Sequence : JTAX]
1.
JAIP IN AED inventory %
2.
JAIQ IN AED inventory Qty
3.
JAOP IN: AED setoff %
4.
JAOQ IN: AED setoff Qty
5.
JAX1 IN: A/P AED setoff
6.
JAX2 IN: A/P AED inventor
7.
JEC1 Inp Ecess Cr %
8.
JEC2 Inp Ecess w/o Cr %
9.
JEX1 Inp Ecess Cr Tot
10.
JEX2 Inp Ecess w/o Cr Tot
11.
JHX1 Inp SEcess Cr Tot
12.
JHX2 Inp SEcess w/o Cr To
13.
JMIP Inp BED w/o Cr %
14.
JMIQ IN: BED inventory Qt
15.
JMOP Inp BED Cr %
16.
JMOQ IN: BED setoff Qty
17.
JMX1 Inp BED Cr Total
18.
JMX2 IN: A/P BED inventor
19.
JSEI Inp SEcess w/o Cr %
20.
JSEP Inp SEcess Cr %
21.
JSIP IN SED inventory %
22.
JSIQ IN SED inventory Qty
23.
JSOP IN: SED setoff %
24.
JSOQ IN: SED setoff Qty
25.
JSX1 IN: A/P SED setoff
26.
JSX2 IN: A/P SED inventor

56

27. JNIP Inp NCCD w/o Cr %
28. JNOP Inp NCCD Cr %
29. JNX1 Inp NCCD Cr Total
30. JNX2 Inp NCCD w/o Cr Tot
To see the Details of each condition Type OBQ1:

Select the condition type and click on details icon on
application tool bar.

57

1.
JAIP IN AED inventory %

58

2.
JAIQ IN AED inventory Qty

59

3.
JAOP IN: AED setoff %

60

4.
JAOQ IN: AED setoff Qty

61

5.
JAX1 IN: A/P AED setoff

62

6.
JAX2 IN: A/P AED inventor

63

7.
JEC1 Inp Ecess Cr %

64

8.
JEC2 Inp Ecess w/o Cr %

65

9.
JEX1 Inp Ecess Cr Tot

66

10.
JEX2 Inp Ecess w/o Cr Tot

67

11.
JHX1 Inp SEcess Cr Tot

68

12.
JHX2 Inp SEcess w/o Cr To

69

13.
JMIP Inp BED w/o Cr %

70

14.
JMIQ IN: BED inventory Qt

71

15.
JMOP Inp BED Cr %

72

16.
JMOQ IN: BED setoff Qty

73

17.
JMX1 Inp BED Cr Total

74

18.
JMX2 IN: A/P BED inventor

75

19.
JSEI Inp SEcess w/o Cr %

76

20.
JSEP Inp SEcess Cr %

77

21.
JSIP IN SED inventory %

78

22.
JSIQ IN SED inventory Qty

79

23.
JSOP IN: SED setoff %

80

24.
JSOQ IN: SED setoff Qty

81

25.
JSX1 IN: A/P SED setoff

82

26.
JSX2 IN: A/P SED inventor

83

27. JNIP Inp NCCD w/o Cr %

84

28. JNOP Inp NCCD Cr %

85

29. JNX1 Inp NCCD Cr Total

86

30. JNX2 Inp NCCD w/o Cr Tot

87

Screen field values:
[ Explanation holds good for all categories
of Conditions Types]
Condition Type
strategy types.
Name
Access sequence
With the access sequence you define
the condition tables used to access the condition records
the sequence of the condition tables
which field contents are the criteria for reading the tables
Condition class
Preliminary structuring of condition types e.g. in surchages and discounts
or prices.
Use
Allows standardised processing of individual condition classes within the
system.

88

Plus/minus sign of the condition amount
Controls whether the condition results in an amount that is negative (a
discount), positive (a surcharge), or whether both positive and negative
amounts are possible.
Procedure
If the condition amount can be either positive or negative, leave the field
blank. Otherwise, enter one of the indicators that specify plus or minus.
Calculation type for condition
Determines how the system calculates prices, discounts, or surcharges in
a condition. For example, the system can calculate a price as a fixed
amount or as a percentage based on quantity, volume, or weight.
The calculation type can be set when generating new condition records. If
this does not happen, the calculation type maintained here is valid for the
condition record.

89

Condition category (examples: tax, freight,
price, cost)
A classification of conditions according to pre-defined categories (for
example, all conditions that relate to freight costs).
Rounding rule
The rule that determines how the system rounds off condition values
during pricing. The last digit will be rounded.
Example
In the standard rounding rule '_', values are rounded off according
to business standards:
10.454 -> 10.45 DEM
10.455 -> 10.46 DEM
In rounding rule 'A', values are always rounded up:
10.459 -> 10.46 DEM
10.451 -> 10.46 DEM
In rounding rule 'B', values are always rounded down:
1045.9 -> 1045 LIT
1045.1 -> 1045 LIT
In this example, the currency of the condition rate is Italian Lira.
The Italian Lira does not have any places after the point.
Structure condition

90

controls whether the condition type should be a duplicated condition or a
cumulated condition.
This control is only helpful when you use bill of materials or configurable
materials.
A duplicated condition is duplicated into all assigned items.
A cumulated condition contains the net value of all assigned items.
Group condition
Indicates whether the system calculates the basis for the scale value
from more than one item in the document.
Use
For a group condition to be effective, the items must belong to a group.
You can freely define the group to meet the needs of your own
organization. The items can, for example, all belong to the same material
group.
Example
A sales order contains two items. Both items belong to the material group
01.
Material Quantity Material group
A 150 01
B 100 01
The group condition indicator is set in the definition of the condition type
for material group discounts. The condition record for material group 01
includes the following pricing scale:
Scale quantity Discount
from 1 pc -1%

91

from 200 pc -2%
Neither item alone qualifies for the 2% discount. However, when the items
are combined as part of a group condition, the combined quantity creates
a basis of 250 pieces. This basis then exceeds the scale value of 200
pieces, which is necessary to qualify for the higher discount.
Routine number for creating group key
Identifies a routine that calculates the basis for the scale value when a
group condition occurs in pricing.
Example
You can specify a routine, for example, that totals the value of all items in
a document in order to determine the basis for a discount.
Rounding difference comparison
Indicator that controls whether rounding difference is settled for group
conditions with a group key routine.
If the indicator is set, the system compares the condition value at header
level with the total of the condition values at item level. The difference is
then added to the largest item.
Making manual entries
Indicator which controls the priority within a condition type between a
condition entered manually and a condition automatically determined by
the system.
&WHAT_TO_DO?
Make the following entries according to your requirements:
_: No limitations

92

A: Freely definable
B: The automatic entry has priority. If a condition record exists, the
condition cannot be entered manually.
C: The manual entry has priority. When you enter the condition
manually, the system does not check whether a condition record
exists.
D: Cannot be processed manually
Condition applies to header
If this condition is marked as a header condition, it is possible to enter the
condition type in the header condition screen. Checks for changing the
condition manually are unaffected by this.
Condition rate of change for amount/percentage
Specifies whether the amout or percentage for the condition type can be
changed during document processing.
Scope for changing conversion factors
Specifies whether the conversion factors for the units of measure in
conditions of this type can be changed during document processing.
Condition applies to items
Procedure
Mark this field if the conditions of this type are allowed to be entered in
the document items. The condition is then only valid for the particular item
in which it is entered.

93

Delete the scope for changing rate
Indicator that controls whether the condition type may be deleted from
the document.
Scope for changing the value
Specifies whether the value of the condition type can be changed during
document processing.
Proposed starting date for the rebate validity
period
Specifies the beginning validity date that the system automatically
proposes when you create a rebate agreement of this type.
Example
You can, for example, specify that the system proposes the first day of the
current week, month, or year.
Procedure
If you want the system to propose the current date, leave the field blank.
Otherwise, enter one of the values predefined for your system.
Sales and Distribution: Pricing Procedure in
Pricing
Determines which condition types can be used in a document and in
which sequence they appear.
The system uses the pricing procedure that you enter here to control the
use of condition supplements in records of this condition type. You can
apply the discounts that are defined in the pricing procedure as condition
supplements during pricing.

94

Procedure
Enter one of the predefined pricing procedures that control condition
supplements. If you leave the field blank, the condition supplement
function in the screens where you maintain the corresponding condition
records is inactive.
Example
You define a pricing procedure to control a condition supplement for a
material price. The condition supplement specifies discounts that you want
the system to apply every time the system accesses a material price
condition record. When you define the condition type for a material price,
you enter the pricing procedure that you defined for the condition
supplement.
Date proposed as valid-to date
Proposed value for how long a condition should remain valid.
The system proposes this value for the Valid to date when you create
condition records.
Condition records should be deleted from the
database
You can use this indicator to control how the system operates when
deleting condition records.
You have the following options:
SPACE: You can set an indicator so that the condition record is
no longer used in pricing. The condition record is then archived in
the archiving run. This is how things happened before Release
4.6A.

95

A: You can delete the condition records from the database. You
then receive a popup, asking whether the condition record should
actually be deleted or whether the deletion indicator should
simply be set.
B: You delete the condition records from the database. You only
receive a popup if there are condition supplements available.
Reference condition type
A condition type which can be used as a reference so that you
only have to create condition records once for condition types that
are very similar.
Use
You may need to use different condition types for the same
condition. These can differ in the access sequence, the
description, the reference stage of the pricing procedure or the
calculation type, for example.
You can enter the condition type under which the condition
records are created.
Example
Condition type MWSI only differs with condition type MWST in the
calculation type. For this reason an entry is made in field
ReferenceCondTypeMWST for condition type MWSI . Now,
condition records only need be created for condition type MWST
and not additionally for MWSI.
Dependencies
Field RefApplication is used to refer to condition records from
other applications.
Update condition index
Specifies whether the system updates one or more condition indices
when maintaining condition records.
This makes it possible to list or maintain condition records independently
of condition type and condition table, for example.
Dependencies

96

For source determination for services, service conditions for the vendor
are taken into consideration in the same way as info records, if the flag
Condition Index is set for condition type Total Price (PRS).
Reference application
Application, that can be used to refer to condition records from other
applications.
You only have to create condition records once for condition types that are
very similar. You can also refer to condition records from other
applications.
You will find further information on the ReferencCondType field in the
documentation.
Scale basis indicator
Determines how the system interprets a pricing scale in a condition. For
example, the scale can be based on quantity, weight, or volume.
Formula for scale base value
Formula for determining the scale base value.
You can use this formula to specify calculation methods that are not
provided in the standard system.
Checking rule for scale rates
Indicates whether the scale rates must be entered in ascending or
descending order.

97

Scale unit
Unit of measure that the system uses to determine scales when you use
group conditions.
The system proposes the unit of measure when you maintain records for
group conditions that are either weight or volume dependent.
Scale Type
Indicator that controls the validity of the scale value or percentage:
From a certain quantity or value (base scale)
Up to a certain quantity or value (to-scale)
Alternatively, it is possible to work with interval scales. Interval scales must
be stored in the condition type, that is, the scale type "interval scale"
cannot be changed in the condition record. The reason for this is technical
restrictions resulting from the programming within pricing.
Indicator: Currency Translation after
Multiplication
Controls the currency conversion where the currency in the condition
record varies with the document currency.
To calculate a condition value in a document, the system multiplies the
amount that results from the condition record by the item quantity. This
indicator controls whether the system carries out currency conversion
before or after the multiplication takes place.
Procedure

98

If you mark the field, the system converts the condition value into the
document currency after multiplication. If you leave the field blank, the
system converts the condition value into the document currency before
multiplication.
Condition exclusion indicator
Indicates whether the system automatically excludes the discounts that are
proposed during pricing.
You can set this indicator in two ways:
For a particular condition record (the field appears on the Details
screen)
For all records of a particular condition type (the field appears
on the screen where you define the condition type)
Note
If you set the indicator to exclude conditions, there are several things to
consider:
The system will still take into account any condition
supplements that are part of the condition record for the price
(condition type PR00, for example)
You can allow for exceptions where you want to include discounts
in spite of the condition exclusion indicator (for a particular
discount condition you can specify a requirement that applies the
discount ONLY when the indicator is set)
Condition is Relevant for Accrual (e.g.
Freight)
Indicates that the system posts the amounts resulting from this
condition to financial accounting as accruals.

99

If you mark this indicator, the condition appears in the document
as a statistical condition.
Condition for configuration
Before Release 4.0 variant conditions (VA00) had to be created
with the condition category 'O'
Problem: It was not possible to indicate a 'Variant condition' at
the same time as 'Internal costing condition' and 'Freight'.
Solution: For this reason more indicators are being set up in 4.0
for the condition type:
* 'Variant condition' (KVARC)
* 'Internal costing condition' (KFKIV)
The characteristic values O and I for the condition category must
no longer be used.
For more information, see the note 93426.
Pricing date
Procedure
Enter the identification code for the date to which a condition of
this type is to be calculated in the sales document. If you do not
enter an identification code, the pricing date or the date of
services rendered is used.
Example
It is a good idea to use the goods issue date as the calculation
date for freight surcharges. In this case, you enter 'A' as the
identification code.
Condition for invoice list
Marks the condition type as relevant for internal costing.

100

Quantity conversion
This field controls the quantity conversion during determination of the
condition basis.
The field is only relevant for calculation rule 'C' (quantity- dependent.
It is relevant if the sales quantity unit and the condition quantity unit are
identical (and is different to the basis quantity unit).
Deactivated: The condition basis quantity is converted via the
quantity to the stock keeping unit. This means that the condition
quantity is determined for planned factors. This means that a
change to the conversion factors in the delivery or the order are
not taken into account. Rounding errors can occur during quantity
conversion.
Activated: If the sales quantity unit and the condition quantity unit
are identical, the quantity of the document item is used, i.e. the
actual quantity.
Condition for inter-company billing
Conditions for Internal Costing, for example PI01 and PI01 were
defined before Release 4.0 by KNTYP = I (Price for internal
costing).
Problem: It was not possible to indicate 'Freight condition' at the
same time as 'Internal costing condition' and 'Variant condition'.
Solution: Therefore a new indicator 'Internal costing condition'
(KFKIV) has been set up. You can use this to indicate a freight
condition as an internal costing condition. For more information,
see note 93426.
Relevance for account assignment
Controls how account assignment is performed for conditions of this type.

101

Procedure
If you leave the field blank, account assignment is performed in the usual
way.
If you enter the indicator B, the system includes the accounting indicator
in the account assignment process. The information from the condition
record is forwarded to Controlling with the classification "accounting
indicator". The system links the condition record to the underlying billing
document item to find the accounting indicator that has been assigned to a
particular transaction.
In the standard system, the condition type KBM1 is set up for use in
transactions involving an accounting indicator.
Account assignment using an accounting indicator is often used in Service
Management. It enables you to identify how costs incurred by a particular
service transaction arose (for example, goodwill, under guarantee).
Text determination procedure
Identifies a group of text types that you can use in, for example, a sales
document header. The text procedure also determines the sequence in
which the text types appear in the document.
Example
The text procedure for a sales document header could include the
following text types:
A standard header text that the system automatically includes in
the document
Standard terms of delivery
Standard terms of payment
Text ID for text edit control

102

Specifies which text ID appears in Text Edit Control.
The text ID defines the different types of texts that belong to a
text object.

SD Condition Types [Access Sequence:
JST1]
JIPC IN C Sales tax inv.
JIPL IN L Sales tax inv.
JIPS IN Sales tax setoff
JVCD Inp VAT Cr CG
JVCN Inp VAT w/o Cr CG
JVCS Inp CST under VAT
JVRD Inp VAT Cr Non-CG
JVRN Inp VAT w/o Cr Non-C

To see the Details of each condition Type
OBQ1:

Click on details icon

103

JIPC IN C Sales tax inv.

104

JIPL IN L Sales tax inv.

105

JIPS IN Sales tax setoff

106

JVCD Inp VAT Cr CG

107

JVCN Inp VAT w/o Cr CG

108

JVCS Inp CST under VAT

109

JVRD Inp VAT Cr Non-CG

110

JVRN Inp VAT w/o Cr Non-C

111

Service Tax Conditions (ACCESS SEQ:
MWST):
AP - Accounts Payable SERVICE
TAX
TCode: OBQ1
Condition Type Description
JSVD Inp / AP Service Tax Cr
JEC3 Inp / AP SerTx Ecess Cr
JSE1 Inp / AP SerTx SEcess Cr
JSER Inp SrvTx (Not used)
JEC4 Inp SrvTxEces w/o Cr
JSE2 Inp SrvTxSEces w/oCr
JSV2 Inp SrvTx w/o Cr

112

JSVD Inp / AP Service Tax Cr

TO CHANGE ACCESS

113

JEC3 Inp / AP SerTx Ecess Cr

114

JSE1 Inp / AP SerTx SEcess Cr

115

JSER Inp SrvTx (Not used)

116

JEC4 Inp SrvTxEces w/o Cr

117

JSE2 Inp SrvTxSEces w/oCr

118

JSV2 Inp SrvTx w/o Cr

119

4. Checking and Changing [Account
Key]Settings for Tax Processing
In this activity you make the necessary specifications for posting taxes. In
doing this you specify under a process key the following indicators:
Tax type
Output tax, input tax, additional taxes, or "not tax-relevant" can be
specified as the tax type.
Nondeductibility of tax amounts
For this, tax amounts are marked as not deductible.
Posting indicator
Here you specify whether the tax amount is posted separately or
distributed to expense or revenue items.
Tax not relevant to cash discount (Not discount relevant)
This indicator is set only for Canada. If you select it, the system
does not take into account the corresponding tax amount when
determining the tax base.
Standard settings
Process keys with the most important characteristics for tax amounts have
already been set in the standard SAP system.
Recommendation
Do not change the standard settings. Check whether you can use these
process keys for your company, making changes only if necessary.
Activities

120

If you cannot use the standard settings, use new process keys and enter
them in your calculation procedure. Do not change the standard SAP
process keys.
Note
You must make enhancements to the standard settings if you want to
specify a new account key in the "Create calculation procedure" activity.
You must create and maintain this key beforehand in the "Settings for tax
processing" activity.
Transaction
code
OBCN
Accounting Global Settings (New) Tax
on Sales/Purchases Basic Settings
Check and change Settings for Tax
Processing

121

Internal processing key
The internal processing keys are used by the system to determine
accounts or posting keys for line items which are created automatically.
The processing keys are defined in the system and cannot be changed by
the user.
Text (20 Characters)
Proces
s Description
Tax
type
Non
deductible
Postin
g indic.
Not
disscnt
rel.
ESA Outp Srv Tx 1 2
ESE Inp SrvTx Cr 2 2
JI5 Inp SrvTxSEces Cr 2 2
JI6 Inp SECess Cr 2 2
JN6 Outp VAT 1 2
JN7 Outp CST under VAT 1 2
JP4 Inp CST under VAT 2 X 3
JP5 Inp VAT Cr Non-CG 2 2
JP6
Inp VAT w/o Cr
NonCG 2 X 3
JP7 Inp VAT Cr CG 2 2
JP8 Inp VAT w/o Cr CG 2 X 3
VS1 Inp BED Cr 2 2
VS2 Inp AED Cr 2 2
VS3 Inp SED Cr 2 2
VS5 Inp LST Setoff 2 2

122

VS8 Inp SrvTxEces Cr 2 2
VS9 Inp Ecess Cr 2 2
ZSE
Outp Ecess on Srv
Tx 1 2
ZSS
Outp SEces on Srv
Tx 1 2

5. Defining Tax Accounts
1ransact|on code C840
IMG menu lloooclol Accoootloq (New) - lloooclol Accoootloq
Clobol 5ettloqs (New) - 1ox oo 5oles/lotcboses -
lostloq - uefloe 1ox Accooots

In this activity, you specify the accounts to which the different tax types are
to be posted. The system determines these accounts for automatic
postings.
Activities
Define the tax accounts.
Notes for the transport of tax accounts
When you transport tax codes between different systems or clients, no tax
accounts are transported.
Adjust the tax accounts in the source and target system (or source and
target client) manually.

123

Transactio
n Description
CO
A
GL
Account
Posting
Keys
Debi
t
Credi
t
ESA Outp Srv Tx
BPI
N
1814110
1 40 50
ESE Inp SrvTx Cr
BPI
N
2636421
1 40 50

124

JI5 Inp SrvTxSEces Cr
BPI
N
2636421
8 40 50
JI6 Inp SECess Cr
BPI
N
1871900
0 40 50
JN6 Outp VAT
BPI
N
1662211
1 40 50
JN7
Outp CST under
VAT
BPI
N
1662212
1 40 50
JP5 Inp VAT Cr Non-CG
BPI
N
2637211
1 40 50
JP7 Inp VAT Cr CG
BPI
N
2637211
2 40 50
VS1 Inp BED Cr
BPI
N
1871900
0 40 50
VS2 Inp AED Cr
BPI
N
1871900
0 40 50
VS3 Inp SED Cr
BPI
N
1871900
0 40 50
VS8 Inp SrvTxEces Cr
BPI
N
2636421
6 40 50
VS9 Inp Ecess Cr
BPI
N
1871900
0 40 50

125

MM-CIN CONFIG
Table of Content MM-CIN
LOGISTICS GENERAL TAX ON GOODS MOVEMENTS
Basic Settings
Maintain excise registrations
Maintain company code settings
Maintain plant settings
Maintain excise groups
Maintain series groups
Maintain excise duty indicators
Maintain postal addresses
Maintain sub transaction types

Determination of Excise Duty
Select tax calculation procedure
Maintain excise defaults.
Condition-Based Excise Determination
Defining tax codes for purchasing documents.
Assignment of tax codes to company code.
Classify condition type.
Master Data
Maintain Chapter ids
Assign users to material mater screen sequence for Excise
Duty
Define form types
Account Determination

126

Define g/l accounts for taxes
Specify excise accounts per excise transaction.
Specify g/l accounts per excise transaction
Business Transactions
Incoming Excise Invoices
Select fields.
Define processing modes per transaction.
Define reference documents per transaction.
Maintain rejection codes.
Specify which movement types involve excise invoices
Excise Invoice Capture against Delivery in the Background.
Subcontracting
Subcontracting attributes.
Maintain movement type groups
Utilization
Utilization Determination
Maintain Minimum Balances for Excise Accounts
Excise Registers
Specify sap script forms.
Tools
Long Texts
Number ranges.
Message control.

127

I. Basic Settings

A. Maintain Excise Registrations

Transaction
code
SPRO
IMG menu Logistics General Tax on
Goods Movements India
Basic Settings Maintain Excise
Registrations
In this IMG activity, you maintain the data relating to your excise
registrations.
Enter each of your excise registrations, specifying a four-character code
for each.
Excise registration
An entity in India that is entitled by law to produce any goods liable to
excise. Each entity is assigned its own excise registration number. Every
factory that manufactures excisable goods is required to register
separately, so that a business with seven factories requires seven
registrations.

128

To define excise registration click on New Entries icon and enter
the Excise registration code. Maintain the details for an Excise
Registration.
ECC number
A tax number assigned, in India, by the Department of Revenue to legal
and natural persons liable to excise duty. The taxpayer is required to
obtain a separate ECC number for each registered premises (for example,
factory, warehouse, or dealer's premises).
Excise registration number
The number used to identify an excise registration (India only). When a
business registers with the local excise authorities, the authorities issue it
a separate number for each registration.
Excise range

129

A subdivision, in India, of an excise division. The excise ranges are
responsible for issuing ECC numbers.
Excise division
A subdivision of an excise commissioner ate, in India. In turn, excise
divisions are split up into excise ranges.
Excise commissioner ate
An administrative body, in India, that assesses and collects excise duty. It
reports to the Central Board of Excise and Customs. There are around 90
commission rates in India, and they are subdivided into excise divisions,
which in turn are divided into excise ranges.
Additional excise duty
A form of excise duty, in India, levied on a select range of products, for the
most part, textiles.
Special excise duty
A form of excise duty in India on a limited number of goods, mostly luxury
goods, including pan masala, sparkling waters, furs, and yachts.
Cess
In India, a tax on the manufacture of certain products, mostly foodstuffs.
Number of Items in Excise Invoice
Shows the maximum number of line items that you are allowed to include
in a single outgoing excise invoice.
Dependencies
This information affects the transactions for creating outgoing excise
invoices for factory sales and for other movements. This information is
used to split the transfer postings' items into multiple subcontracting
challans.

130

Excise Register Set Description
Description of the excise register set.
Partial CENVAT Credit
Specifies that the excise registration is allowed to credit only a portion of
its input excise duty to its CENVAT account.
Dependencies
When you post a goods receipt, the system splits the input excise duty on
the material into its deductible and nondeductible amounts. It posts the
deductible duty to the appropriate CENVAT account, and adds the
nondeductible duty to the material value.
This information is also shown when you post the incoming excise invoice.
Indicator for confirming NCCD Usage
NCCD - National calamity contingency duty. Select this Indicator if
NCCD Usage is applicable.
Liable to AT1, AT2.

Select this indicator if Excise Registration Is Liable to AT1
(Additional Tax 1 In this case S.H.Ecess).The same is applicable in
case of AT2 and AT3.
B. Maintain Company Code Settings

IMG menu Logistics General Tax on Goods
Movements India Basic Settings
Maintain Company Code Settings

131

132

Document Type for CENVAT Postings
Controls which document type the system uses when making CENVAT
postings in Financial Accounting (FI).
Document type for FI posting on Utilization
Financial accounting document type for TDS posting.
Overwrite Debit Accounts
Allows users, when entering journal vouchers, to overwrite the proposed
debit accounts depending on the nature of transaction.
First Month in Excise Year
Specifies which calendar month marks the beginning of the excise year.
Dependencies
If the excise authorities change the start month, change the month here.
Days to be considered for excise invoice
selection
Number of days from document date for excise invoice selection.
Example
If the value of this field is 20 and today is 28-03-97. The excise
invoice selection will show the related invoices only for the
period 08-03-97 to 28-03-97.
Number of excise invoices to be selected

133

Indicates the number of excise invoices that needs to be selected in the
excise invoice selection.
Indicator for item level excise duty round off
Rounds off the excise duty on each line item in a purchase order.
Dependencies
The system rounds the duty off to the nearest rupee. However, if the duty
amount is less than one rupee then no rounding is done.
It does not round off the CENVAT credit to be taken.

Rounding off of Exicse duty for outgoing
excise invoice
Rounds off the excise duty be paid when you create an outgoing excise
invoice.
Dependencies
The system rounds off the excise duty for each line item separately.
Exchange Rate Type
Key representing a type of exchange rate in the system. You enter the
exchange rate type to store different exchange rates.
Example

134

You can use the exchange rate type to define a buying rate, selling rate, or
average rate for translating foreign currency amounts. You can use the
average rate for the currency translation, and the bank buying and selling
rates for valuation of foreign currency amounts.
Exchange rate type to be used for Export excise duty covers
Specifies which exchange rate type the system uses to translate excise
duty when you create an outgoing excise invoice for export sales
CVD Clearing Account
Specifies the countervailing duty clearing account.
Dependencies
When you post an incoming excise invoice for goods that you have
purchased abroad, the system credits the countervailing duty to this
account.
C. Maintain Plant Settings

Maintain Plant Settings
In this IMG activity, you maintain excise information relating to your plants.

135

Enter Plant and specify Maintain Appropriate excise Registration
number andselect multiple goods receipt Per EI List box and
SAVE.

Plant
Key uniquely identifying a plant.
Definition: plant
Logistics - General (LO)
In Logistics a plant is an organizational unit for dividing an enterprise
according to production, procurement, maintenance, and materials
planning.
A place where materials are produced, or goods and services are
provided.
Depot
Indicates that the plant in question is a depot.
Dependencies

136

Depots are required to prepare register RG 23D, and follow different
procedures for goods receipt and invoice generation.

Excise Registration
Specifies the excise registration.
Procedure
Specify which excise registration this plant belongs to.
Number of Goods Receipts per Excise Invoice
Specifies whether you are allowed to receive more than one delivery per
excise invoice, and if so, whether you can take the CENVAT credit
immediately (Multiple Credits) or have to wait until the delivery has been
made in full (Single Credit).

D. Maintain Excise Groups

Maintain Excise Groups
In this IMG activity, you define your excise groups. For each excise
group, you can also control how various excise invoice transactions will
work.

137

Excise Group
Specifies the excise group.

138

Definition: excise group
A unit within an excise registration, in India, which keeps its own set of
excise records.
Whereas the excise registration reports to the excise authorities, the
excise group is a purely internal organizational unit. Each excise group
keeps records of all transactions that have to be reported to the excise
authorities. When the time comes to present these records to the
authorities, the excise registration compiles the information from all of its
excise groups.
Plant
Definition: plant
In Logistics a plant is an organizational unit for dividing an enterprise
according to production, procurement, maintenance, and materials
planning. A place where materials are produced, or goods and services
are provided.
Excise Group Description
Describes the excise group.
Excise Registration
Specifies the excise registration.
Definition: excise registration
An entity in India that is entitled by law to produce any goods liable to
excise. Each entity is assigned its own excise registration number. Every
factory that manufactures excisable goods is required to register
separately, so that a business with seven factories requires seven
registrations.

139

Number of Goods Receipts per Excise Invoice
Specifies whether you are allowed to receive more than one delivery per
excise invoice, and if so, whether you can take the CENVAT credit
immediately (Multiple Credits) or have to wait until the delivery has been
made in full (Single Credit).
Copy Excise Invoice Quantity to Goods
Receipt
Instructs the system, when you post a goods receipt using an incoming
excise invoice as a reference document, to copy the excise invoice
quantity to the goods receipt.
Create Excise Invoice Automatically
Instructs the system to automatically create an outgong excise invoice
immediately you create a commercial invoice or a pro forma invoice.
The system creates the excise invoice in the background.
Dependencies
If you want to make use of this function, you must also define the default
plant, excise group, and series groups in Customizing for Excise Duty, by
choosing Business Transactions -> Outgoing Excise Invoices -> Maintain
Default Excise Groups and Series Groups.

Automatic Posting for J1IS
Instructs the system to automatically verify and post excise invoices that
you create using the Excise Invoices for Other Movements transaction
Create Part I Entry for Direct Consumption

140

Automatically creates two entries in Part I of register RG 23 A or RG 23 C
immediately you post a goods receipt for direct consumption, one entry to
record the goods receipt, and one for the goods issue.
Uniquely, goods for direct consumption are not added to a material stock.
Instead, the system posts them straight to a consumption account. You do
not create a separate goods issue.
However, with other goods, it is the goods issue material document that
causes the system to create the Part I entry for the goods issue.
This function overcomes that problem: When you enter a goods receipt for
direct consumption, the sysstem automatically creates two Part I entries
(for the receipt and the issue) from the goods receipt document.
Examples
You enter a goods receipt for 100 lengths of steel for direct consumption.
The system creates a single material document for the goods receipt and
issue. From this material document it generates two Part I entries for
register RG 23 A, one for the goods receipt and another for the goods
issue.
Depot
Indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different
procedures for goods receipt and invoice generation.
Generate Folio Numbers
Automatically generates a folio number when you post a goods receipts
and goods issues that are recorded in register RG 23D.
Dependencies

141

If you use this function, maintain the number ranges for the folio number.
In Customizing for Excise Duty, choose Tools -> Number Ranges, and
create an interval for J_1IRG23D (Folio Numbers).
Automatically Verify and Post EIs for Depot Sales
Automatically verifies and posts the selection of excise invoices that you
have assigned to a delivery from a depot.
Address
Specifies an organization's postal address.
Capture Excise Invoice in MIGO
Enables users to capture incoming excise invoices when they enter a
goods receipt in the standard Goods Movement transaction, (MIGO).
This applies to manufacturing plants and depots alike.
Dependencies
When you run the Goods Movement transaction, it shows two additional
Excise Invoice tabs, one at header level and one at item level.
You enter the goods receipt details and the excise invoice information.
When you save the goods movement, the system automatically saves the
excise invoice, to be posted by an excise supervisor later on using the
Incoming Excise Invoices transaction.
Post Excise Invoice Captured in MIGO
Enables users in manufacturing plants to post incoming and outgoing
excise invoices in the standard Goods Movement transaction, (MIGO).
It also enables users in depots to post incoming excise invoices (for goods
receipts) and RG 23D selections (for goods issues).

142

Use
Since when you post an excise invoice, the system creates an entry in
register RG 23A or RG 23C (manufacturing plants) or register RG 23D
(depots), activate this function only if the users working with this
transaction are familiar with the excise duty system.
Dependencies
When you run the Goods Movement transaction, it shows two additional
Excise Invoice tabs, one at header level and one at item level.
You enter the goods movement details and the excise invoice information.
When you save the goods movement, you can also post the excise
invoice.
Post Incoming Excise Invoice at MIGO if duties are changed
Enables users to post incoming excise invoices in the standard Goods
Movements transaction, (MIGO), even if they have changed any of the
excise duty information in the Excise Invoice tabs.
Otherwise, if they change the excise duty, the transaction only allows them
to capture the excise invoice, for verification and posting by an excise
supervisor later on.

Create Excise Invoice or RG23D Selection in MIGO
Enables users in manufacturing plants to create outgoing excise invoices
when they enter a goods issue in the standard Goods Movement
transaction, (MIGO).
It also enables users in depots to select the appropriate RG 23D entries
when they enter a goods issue.
Dependencies

143

When the user runs the Goods Movements transaction, it shows two
additional Excise Invoice tabs, one at header level and one at item level.
In manufacturing plants, the user enters the goods issue details and the
excise invoice information. When they save the goods movement, the
system automatically saves the excise invoice, to be posted by an excise
supervisor later on.
In depots, the user enters the goods issue details and assigns the goods
to the RG 23D entries that the system created when the warehouseman
posted the original goods receipt.
Update RG1 at MIGO
Creates an entry in register RG 1 immediately you create an outgoing
excise invoice in the standard Goods Movement transaction, MIGO, if the
goods in the excise invoice are finished goods.
Otherwise, the RG 1 entry is not created until you execute the Register
Update program.
E. Maintain Series Groups
Maintain Series Groups
In this IMG activity, you define the different excise series groups within
your company. Series groups allow you to maintain multiple number
ranges for the outgoing excise documents.
Based on excise regulations and exemptions from the authorities you can
maintain multiple number series for outgoing documents. But each of
these series has to be declared to the excise authorities.
Activities

144

Define excise series groups based on type of outgoing document
Assign series group to excise registration ID
If no financial postings are required for an Excise invoice in this
seris group then you tick the 'No utilization' indicator.
If the CENVAT has to be paid immediately and you need not wait
for the Fort nightly payment then mark the 'Immediate Utilization'
indicator.
Example
You could define two series groups, group 001 for excise invoices, and
group 002 for 57 F4 documents.

145

Excise Document Series Group
Specifies the excise document series group.
Definition: excise document series group
A system object that excise registrations use, in India, to organize the
various types of excise documents into groups.
You group excise documents to reflect the way that the excise documents
are organized in your excise registrations.
The system numbers each group separately, using a separate number
range interval for each.

146

Example
An excise registration uses various types of excise documents, including
outgoing excise invoices and ARE-1s. It creates a series group for the
ARE-1s, but because it has so many excise invoices, it creates two series
groups for these, one for finished materials, and one for raw materials.
Document Series Description
Excise series group description.
Excise Registration
Specifies the excise registration
No account postings for CENVAT in sales
cycle
No utilization Flag
If you do not need any CENVAT utilization for an excise invoice but would
like to just generate an excise invoice then you need to mark this indicator.
IF the flag is checked then system will create an Excise invoice in the
given Series group but there will not be any account postings or Part2
postings.
Immediate Utilization of CENVAT
Specifies that when you create an excise invoice, the system immediately
pays the amount from CENVAT and creates the Part II entry. Such
invoices will not be listed for fortnightly utilization.
If you have both fortnightly and immediate utilization for the same excise
group, the account determination within CIN IMG should point to the ED
interim account.

147

Account determination for immediate payment will be done exactly the
same as being done for fortnightly utilization program.
Export Period
Specifies the export period.
The export period applies to exports under bond and exports under claim
for rebate.
Dependencies
If you try to change an ARE-1 after the end of the export period, the
system issues a warning message. You then have two options:
If you manage to obtain an extension from the excise department,
you enter the extension date in the ARE-1. This effectively
extends the ARE-1's export period.
Otherwise, in the case of exports under bond you must pay the
excise duty plus interest. In the case of exports under claim for
rebate, you forego the excise duty already paid. You then close
the ARE-1 as normal.

Export period
The maximum length of time that you are allowed to export goods from
India after you have removed them from your premises.
If you exceed the export period, you forego the exemption from basic
excise duty and you must pay the excise duty to the excise authorities.

148

Rebate Period
Specifies the rebate period.
This applies to exports under claim for rebate only.
Dependencies
The system does not offer any functions for controlling which ARE-1s have
exceeded the rebate period. SAP recommends that you create your own
programs for this purpose, if you wish.
Rebate period
Under India's exports under rebate scheme, the maximum length of time
that you are allowed to reclaim any excise duty that you have paid on
exports.
Fast Credit
Automatically credits the excise duty from ARE-1s back to the running
bond account as soon as you enter the date on which you received the
countersigned ARE-1 back from the customs office.
Otherwise, the system does not credit the duty back until the local excise
authorities confirm that the export has been completed. Select this
indicator if you have an agreement with your local excise department to
this effect.
Address
Specifies an organization's postal address. If you use the Exports Under
Excise Regulations solution, enter a default customs address for this
series group. Otherwise, leave the field blank.
When a user creates an ARE-1 in this series group in the ARE
Documents transaction, the system automatically proposes this address
for the customs department. The address is shown on printouts of ARE-1s.

149

Dependencies
You define addresses in Customizing for Logistics - General, by choosing
Tax on Goods Movements -> India -> Basic Settings -> Maintain Postal
Addresses.
F. Maintain Excise Duty Indicators
Maintain Excise Duty Indicators
In this IMG activity, you maintain the excise duty indicators

G. Maintain Postal Addresses

150

Maintain Postal Addresses
In this IMG activity, you maintain the addresses of various customs and
excise organizations that your company deals with. You use these
addresses in the ARE Documents functions. When you create an ARE-1
or ARE-3, you enter the address of the excise department and the
customs department involved in the export process. The system then
prints their names and addresses on the AREs.
You can then define a default local excise department for each excise
group and a default customs department for each series group.

Address
Specifies an organization's postal address. Enter a three-digit code for the
address.
Excise Address Description (example)
Addresses maintained for ARE1 documents
Address 1 - Address of C.E.Superintendent:

151

Attibele Range, IV Floor, 'A' Wing
Kendriya Sadanaa
Koramangala,
Bangalore - 560 034
H. Maintain Sub transaction Types
Transaction
code
SPRO
Maintain Subtransaction Types
In this IMG activity, you can define subtransaction types.
Activities
By default, the system records excise duties on the accounts that you have
specified in the IMG activity Specify Excise Accounts per Excise
Transaction.
If you want to be able to record some excise duties on other accounts:
1. Create a subtransaction type in this IMG activity.
2. In the IMG activity Specify Excise Accounts per Excise
Transaction, create a new entry with this subtransaction type
and enter the accounts that you want to post to.

152

Sub Transaction Type
Specifies the subtransaction type and text.
II. Determination of Excise Duty
A. Select Tax Calculation Procedure
Select Tax Calculation Procedure
In this IMG activity, you specify which tax procedure you want to use for
determining excise duties and sales taxes on input materials in India.
If you use condition-based excise determination, use a copy of
the tax procedure TAXINN.
If you use formula-based excise determination, use a copy of
the tax procedure TAXINJ.

153

This tax procedure also supports condition-based excise
determination, so that you can work with both concurrently.
We strongly recommend that new customers use condition-based excise
determination. Note that once you have started using a tax procedure, you
cannot switch to another one, otherwise you will not be able to display old
documents.
Condition-based excise determination - TAXINN
A method that the system uses of determining excise duty in India. This
method requires you to create condition records for each combination of
vendor or customer and material (and possibly other conditions).
When you create a purchasing document, the system calls the tax
procedure assigned to India. The tax procedure finds all of the condition
records that you have created for that combination of vendor and material.
When you create a sales document, the excise duties and sales taxes are
determined by the pricing procedure (not the tax procedure).
Formula-based excise determination - TAXINJ
A method that the system uses of determining excise duty in India. This
method was used in the Country Version India Add-On and requires you to
maintain additional data in the Excise Rate Maintenance transaction, J1ID.
When you create a purchasing document, the system calls the tax
procedure assigned to India. Each of the excise duties in the tax procedure
has its own condition types, and each condition type is assigned to a
formula. This formula instructs the system to calculate the excise duty
using the data that you have maintained in the Excise Rate Maintenance
transaction.
When you create a sales document, the system determines the excise
duties and sales taxes using the pricing procedure (not the tax procedure).

154

Country Key
The country key contains information which the system uses to check
entries such as the length of the postal code or bank account number.
The two-character ISO code in accordance with ISO 3166, which is
delivered by SAP as a default, is usually used.
Costing,...)
Example
CO internal orders

155

mail)
B. Maintain Excise Defaults
Maintain Excise Defaults
In this IMG activity, you define which tax procedure and pricing condition
types are used in calculating excise taxes using formula-based excise
determination.
Activities
If you use condition-based excise determination, fill out the CVD cond.
field and leave all the others blank.
If you use formula-based excise determination, fill out all of the fields as
follows:
Enter the tax procedure and the pricing conditions that are
relevant for excise tax processing.
Specify the purchasing and sales conditions types used for basic
excise duty, additional excise duty, special excise duty, and
cess.

156

Specify the conditions in the sales order that are used for excise
rates.
Specify the countervailing duty condition type used for import
purchase orders.

157

Tax proc. TAXINJ TAXINN
CVD cond. JCV1 JCV1
Exp tax cd A0
Tax jur.cd 9900
A/P BED Cond JMO1 JMX1
A/P SED Cond JSO1 JSX1
A/P AED Cond JAO1 JAX1
A/R BED Cond JEX2 JEXP
A/R SED Cond JEXS
A/R AED Cond JEXA
A/R CESS Cond JCES
BED perc JMOD JMOP
AED perc JAED JAOP
SED perc JSED JSOP
Cess perc JCED
ECS CVD
ECS AP JEX1
ECS AR JECS
ECS Perc JEC1
ECS Cond JECV
ADC Cond JADC
AP AT1 Cond JSEP
AR AT1 Cond JHCS
AT1 Perc JHCS

158

CVD Condition Type A/P
Specifies which condition type you use for countervailing duty on imports
Countervailing duty
Financial Accounting (FI)
A form of excise duty imposed on imports that are subsidized by the
country in which they were manufactured.
Countervailing duty (also known as CVD) is intended to make the imports
more expensive, thereby redressing any competitive advantage they might
have over goods produced locally.
Export tax code
Specifies the tax code used for calculating excise duty on nonbonded
exports.
Dependencies
When you create an outgoing excise invoice for a nonbonded export sale,
you choose Calculate Tax; the system applies the tax code that you have
entered here.
Export tax jurisdiction code (Dummy)
The tax jurisdiction is used for determining the tax rates in the USA. It
defines to which tax authorities you must pay your taxes. It is always the
city to which the goods are supplied.
Account payable BED condition type

159

Condition Type defined in Tax Procedure TAXINJ for Basic Excise Duty
on Accounts Payable.
Account payable SED condition type
Account payable AED condition type
Condition Type defined in Tax Procedure TAXINJ for Additional Excise
Duty on Accounts Payable.
Account receivable BED condition type
Condition Type defined in Tax Procedure TAXINJ for Basic Excise Duty
on Accounts Receivable.
Account receivable SED condition type
Account receivable AED condition type
Condition Type defined in Tax Procedure TAXINJ for Additional Excise
Duty on Accounts Receivable.

Account receivable CESS condition type
Condition Type defines in Tax Procedure TAXINJ for Cess on Account
Receivable.
BED Percentage condition
AED Percentage condition
SED Percentage condition

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CESS Percentage condition
III. Condition-Based Excise
Determination. (TAXINN only)
A. Define Tax Codes for Purchasing Documents
Transaction code FTXP
condition Based Excise Determination
Define Tax Code for Purchasing
Documents
In this IMG activity, you define a tax code for the purposes of calculating
excise duty when you enter purchasing documents.
Only carry out this activity if you use condition-based excise determination.
Activities
Create a new tax code, and set the tax code type to V (input tax). Do not
make any other settings for it.

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B. Assign Tax Code to Company Codes
condition Based Excise
Determination Assign Tax Code to
Company Codes
In this IMG activity, assign the tax code for purchasing documents to the
company codes where it will be used.
Only carry out this activity if you use condition-based excise determination.

Company Code
The company code is an organizational unit within financial accounting.
Sales Tax Code
The tax code represents a tax category which must be taken into
consideration when making a tax return to the tax authorities.

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Tax codes are unique per country. The tax rate calculation rules and
further features are stored in a table for each tax code.
Procedure
For tax-exempt or non-taxable transactions, you should use tax codes
with a 0 percentage rate if the corresponding transactions are to be
displayed in the tax returns.
C. Classify Condition Types
Determination of Excise duty Condition
Based Excise Determination Classify
Condition Types
In this IMG activity, you specify which condition types you use for which
sort of tax. Note that this only applies to condition types that you use with
the new excise determination method.
The system uses this information when you create a document from
another one. For example, when you enter an incoming excise invoice
from a purchase order, or when you create an outgoing excise invoice
from a sales order, the system determines the various excise duties in the
excise invoice using the information that you have entered here.
In addition, when you create a purchasing document, the system only uses
the condition types that you enter here.
For taxes on purchases, use the condition types contained in the
tax procedure.
For taxes on sales, use the condition types contained in the
pricing procedures.

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Standard settings
The standard system comes with sample settings for the tax calculation
procedures and pricing procedures.
Use these settings as a basis for your own.

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Costing,...)
Example
CO internal orders
mail)
Condition Type
The condition type is used for different functions. In pricing, for
example, the condition type lets you differentiate between
different kinds of discount; in output determination, between

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different output types such as order confirmation or delivery note;
in batch determination, between different strategy types.
Condition name for Indian tax conditions
IV. Master Data
A. Maintain Chapter IDS
In this IMG activity, you maintain the chapter IDs and the
corresponding descriptions as per the schedules published by the
Central Board of Excise and Customs.

Movements India Master Data
Maintain Chapter IDs

Definition: chapter ID
The number given to a material in the schedules of materials published by
the government of India.
The schedule lists all materials involved in manufacturing, input materials
and output materials alike. It shows how much excise duty is levied on
each material.
Each material in the schedule is assigned its own identification code,
called "chapter ID."
Example

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The schedule contains an entry for ceramic roofing tiles, which are liable to
basic excise duty at 16%. The chapter ID associated with these tiles is
6903.10.

Chapter ID
Specifies the material's chapter ID.
Description as per Law
Shows the text of the chapter ID as per the Central Excise Law.

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Chapter ID
Specifies the material's chapter ID.
Unit of Measure for Excise
The Unit of Measure for Excise describes the Unit for which the Excise
rate is defined, under the Chapter, Headings and Sub-headings. This Unit
of Measure for Excise is required to be defined in cases where
Quantity-based taxes are applicable.
Examples
For Chapter ID 7216.10, the Excise duty is Rs. 1000 per ton.
Here the Unit of Measure for Excise will be 'TON'

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Description as per Law
Shows the text of the chapter ID as per the Central Excise Law.
B. Assign Users to Material Master Screen
Sequence for Excise Duty (Standard setting.
Do not change this)
Assign Users to Material Master Screen
Sequence for Excise Duty
In this IMG activity, you customize the material master data so that it
shows the information relating to excise duty.
Standard settings
Country Version India comes with a screen sequence (IN) that shows the
excise duty fields. You have to assign it to each of your users.
Activities
1. Double-click User Screen Reference.
2. Assign all users who need to see the excise duty information to
the screen reference IN.
Example
Name Screen Reference
MISHRA IN

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171

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C. Define form types
In this IMG activity, you define which form types you want to record in the
system. You can only use form tracking for the form types that you enter
here.
Note: As per the Union Budget 2009 Deemed export formalities changed.
No CT1/CT3 now.
Example
Form type: CT3
Form description: Concessional tax form
Status: Receive

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Transaction
code
SPRO
Define Form Types

Form Type
Concessional Form Type.
Form Description
Form Type Description.
Form is required
Tax Classification 4 Customer
Definition
Indicates whether, during pricing, the system takes into account taxes that
relate to the customer (for example, state sales taxes).
The system copies the tax classification from the tax information stored in
the customer master record of the ship-to party. During pricing, the

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system uses the tax classification together with the country key (identifies
where the customer is located) to calculate relevant taxes.

V. Account Determination
A. Define G/L Accounts for Taxes
Transaction code OB40
Movements India Account
Determination Define G/L Accounts
for Taxes
In this IMG activity, you specify which G/L accounts you will use to record
which taxes.
Requirements
You have set up G/L accounts for each of the processing keys listed
below.
Activities
Assign an account to each of the following posting keys. The accounts for
VS1, VS2, and VS3 are used as clearing accounts during excise invoice
verification.
VS1 (basic excise duty)
VS2 (additional excise duty)
VS3 (special excise duty)
VS5 (sales tax setoff)
MWS (central sales tax)
MW3 (local sales tax)
ESA (service tax)
ESE (service tax expense)

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176

177

B. Specify Excise Accounts per Excise
Transaction
Determination Specify Excise
Accounts per Excise Transaction
In this IMG activity, you specify which excise accounts (for excise duty and
CENVAT) are to be posted to for the various transaction types. Enter all
the accounts that are affected by each transaction type.
If you use subtransaction types, enter the accounts for each
subtransaction type as well.
Activities
Transaction type UTLZ is used for determining accounts only while posting
excise JVs and also if the payment of excise duty has to be done
fortnightly.

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The fortnightly CENVAT payment utility picks up the credit side accounts
from the transaction types of GRPO, EWPO, and TR6C for determining
the CENVAT and PLA accounts. There is no separate transaction type for
fortnightly payment.
Example
Excise
TT
DC
ind
Account name
GRPO CR
CENVAT clearing
account
GRPO CR RG 23 BED account
GRPO DR
CENVAT on hold
account

Excise Transaction Types

Excise
TT
Deiscription
57CM 57F CHALLAN COMPLETION
57FC 57F CHALLAN CAPTURE/CHANGE
57NR 57F NON RECEIPT
ARE1 EXPORT PROCESSING UNDER ARE1
ARE3 DEEMED EXPORTS UNDER ARE3
CAGI CAPITAL GOODS ISSUES
CAPE CAPITAL GOODS
CEIV CANCELLATION OF EXCISE INVOICE
DIEX DIFFERENTIAL EXCISE THROUGH JV
DLFC GOODS REMOVAL THROUGH SALES

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EWPO EXCISE INVOICE WITHOUT PO
GRPO
EXCISE INVOICE FOR GOODS
RECEIPT / PO
MRDY REVERSAL WITHOUT REFERENCE
MRRD
REVERSAL IN CASE OF
CONSUMPTION OTHER THAN
PRODUCT
MRWO
CENVAT REVERSALS FOR WRITE
OFF
OTHR
EXCISE INVOICE FOR OTHER
MOVEMENTS
TR6C
PLA ACCOUNT ADJUSTMENT
THROUGH
UTLZ FORTNIGHTLY PAYMENTS

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Excise Transaction Type
Identifies the excise transaction.
Dependencies
The system uses the excise transaction type to determine which G/L
accounts have to be posted to.

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Specifies the subtransaction type.
Debit credit indicator
To Indicate account is Debited or Credited.
Account Name
Account name specifies the name of the account used for different
transactions.
Example RG23ABED

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183

184

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C. Specify G/L Accounts per Excise Transaction
Determination Specify G/L Accounts
per Excise Transaction
In this IMG activity, you assign the excise and CENVAT accounts to G/L
accounts.
When you come to execute the various transactions, the system
determines which G/L accounts to post to by looking at the:
Excise group
Company code
Chart of accounts
Furthermore, if you want separate account determination settings within an
excise group, you can also use sub transaction types.
Requirements
You have already:
Defined the G/L accounts
Defined the excise groups
Maintained the transaction accounts
Activities

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For each excise group, assign the excise and CENVAT accounts to G/L
accounts. For most businesses, one set of accounts will suffice for all
transactions.
Note
You need not remit the CENVAT to the excise department immediately, so
maintain the credit account for transaction type DLFC as an excise duty
interim account. This will be set off when you remit the duty.

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Excise Group
Dependencies
Company Code
Chart of Accounts
Key that uniquely identifies a chart of accounts.
G/L account RG23A BED account
G/L Account for RG23A basic excise duty.
G/L account RG23A AED account
G/L Account for RG23A additional excise duty.

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G/L account for RG23A SED
G/L Account for RG23A special excise duty.
G/L account for RG23C BED
G/L Account for RG23C basic excise duty.
G/L account for RG23C AED
G/L account for RG23C SED
G/L Account for CENVAT Offset
Records the excise duty calculated at the time of invoice verification. The
values in this account and the CENVAT clearing account are balanced if
there is no difference in the excise amounts at goods receipt and inovice
verification.
Use
The values in this account and the CENVAT clearing account are
compared after invoice verification.
Examples
Comparison of CENVAT clearing and offset accounts and the resultant
postings:
If there is no difference in the amounts compared (say 100)

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Dr. CENVAT clearing acct 100
Cr. CENVAT offset acct 100
If amount at invoice receipt (say 110) > amount at GR (say 100)
Dr. CENVAT plant acct 10
Cr. CENVAT clearing acct 100
If amount at invoice receipt (say 90) < amount at GR (say 100)
Dr. CENVAT clearing acct 100
Cr. CENVAT plant acct 10

G/L account for Modvat Clearing
The G/L Account for Modvat Clearing is used to post the Excise amount
(in case of material for which Modvat can be availed) at the time of
Goods Receipt(GR).
Use
The values in the Modvat Clearing Account and the Modvat Offset
Account are compared after Invoice verification.
Examples
At GR, the Modvat amount is posted as follows :
Modvat Plant A/c. Dr.
To Modvat Clearing A/c.
G/L account for PLA BED (Personal Ledger
Account)

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The Personal Ledger Account (PLA) has the value of funds deposited with
the Central government into the Bank Account nominated by them. The
funds in the PLA account are used exclusively for the payment of Excise
Duty.
The funds in either the PLA Account or the RG23A account or the RG23C
account are used for payment of Excise Duty at Sales Invoicing.
G/L account for PLA AED (Personal Ledger
Account)
Duty.
G/L account for PLA SED (Personal Ledger
Account)
Duty.
G/L account for PLA CESS (Personal Ledger
Account)
Duty.

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G/L Account for CENVAT On Hold
Records any CENVAT that is temporarily not available - and therefore "on
hold" - until certain conditions are met.
Examples
Countervailing duty paid on imports is not available for utilization until
receipt of the goods. On receipt of goods, the relevant duty is to be
transferred to the appropriate CENVAT account of the plant.
G/L Account for CENVAT Suspense
Records excise duty from sales documents. The excise duty is
subsequently paid from the CENVAT RG 23A, RG 23 C, or personal
ledger accounts.
G/L account for PLA On Hold
General Ledger Account for PLA Suspense
Use
Cheques deposited, into the PLA Account maintained with the bank, are
posted to this general ledger account initially, pending realisation.
The balance in this account is not available for payment of excise duty
on despatches until the intimation of realisation of cheque is received
from the bank.
Subsequently, the realised amounts are transferred to the general ledger
account for PLA maintained for the plant.

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G/L Account for CENVAT Reversal
G/L account for RG23A NCCD
G/L account for RG23C NCCD
G/L account for PLA NCCD
G/L account for RG23A ECS
G/L account for RG23C ECS
G/L account for PLA ECS
G/L account RG23A AT1 account [ used for
SECS]
G/L Account for RG23A basic excise duty.
G/L account RG23C AT1 account[ used for
SECS]
G/L account for PLA AT1 (Personal Ledger
Account) [ used for SECS]
Duty.

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VI. Business Transactions
A. Incoming Excise Invoices
1. Select Fields Standard setting. Dont change
Transaction code J1IEX_SFAC
Movements India Incoming Excise
Invoices Select Fields
In this IMG activity, you specify which fields you want in the Incoming
Excise Invoices transaction.
The settings that you make here apply for all versions of the transaction
that you might create.
Activities
For each field, specify whether you want it to be an input field, a display
field, and so on. You can also highlight fields of particular importance.
Only the main table is of interest. You do not need to use the other
functions, such as Influencing or Screen Groups.

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Screen group for screen classification
Here you can define a string of up to four characters which is available at
the screen runtime in the SY-DNGR field.
Using this string, you can assign several screens to a common (screen)
group which you can then use to ensure that modifications to all the
screens in the group are consistent.

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Screen groups can be maintained in Table TFAWT. This contains a
language-dependent text for each screen group within a program (module
pool), which describes the group.
If you enter a screen group on the attribute screen in the Screen Painter
which does not exist for the current program, the system creates an entry
for it in Table TFAWT.
Field Selection: Modifiable Field
Use
The name for a modifiable field must be specified in full. For a Dictionary
field, this means the table name and the actual field name linked with '-'.
Every field name in a screen can be used.
A modifiable Dictionary field must belong to a table whose fields are
permitted for use in field selection. This is done by assigning the table to
the corresponding screen group in the field selection transaction.
Indicator: 'Field is ready for input'
Specifies that the relevant field is ready for input.
Indicator: 'Field is a required entry'
Specifies that the relevant field is a required entry.
Indicator: 'Field is displayed'
Causes the relevant field to be displayed.
Indicator: 'Field is hidden'
Causes the relevant field to be hidden.

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Indicator: 'Field is highlighted'
Causes the relevant field to be highlighted.
2. Define Processing Modes Per Transaction
Invoices Define Processing Modes
Per Transaction
In this IMG activity, you specify which processing modes the user can use
in the various Incoming Excise Invoice transactions.
This way, you can tailor the transaction to what your users have to do.
Standard settings
The system comes with three standard transactions relating to the
Incoming Excise Invoices function (those that are included in the role
SAP_CIN). The processing modes available in these transactions are as
follows:
J1IEX_C
This transaction is for excise clerks: users of this transaction can
only capture and display excise invoices.
J1IEX_P
This transaction is for excise supervisors: they can change,
display, cancel, and post excise invoices.
J1IEX

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In this transaction, users can capture and post excise invoices, as
well as displaying, changing, and canceling them.
Activities
If the standard settings meet your requirements, do not do anything.
Otherwise, you can adjust the standard settings or you can create your
own transactions. To do so:
1. In Maintain Transaction, create a new transaction by making
a copy of one of the standard transactions. Give the new
transaction a transaction code of your choice.
2. In this activity, enter data as follows:
o Tcode: The transaction code that you have just created.
o Proc. mode: Specify what the users of the transaction
will do with the excise invoices.
o Active: Select this indicator to activate the setting.
Example
You might want to create a transaction that only allows users to display
excise invoices.

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Transaction Code
A combination of alphabetical and numerical characters forming a code for
a business task.
Processing Mode
Controls what you want to do with the excise invoice or ARE document.
Active
Activates this setting.
Dependencies
If you do not set this indicator, this option will not be available when the
user runs the transaction.

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3. Define Reference Documents Per Transaction
Invoices Define Reference Documents
Per Transaction
In this IMG activity, you specify for each combination of transaction and
processing mode which reference documents you want the users to be
able to use.
Activities
If the standard settings meet your requirements, you do not have to do
anything.
Otherwise, add the entries that you need to the table: For each
transaction, make one entry per combination of processing mode and
reference document. Activate each entry for it to work.

200

Transaction Code
a business task.
Processing Mode
Controls what you want to do with the excise invoice or ARE document.

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Definition: ARE document
A document, in India, that accompanies exports and deemed exports. The
documents ensure that you do not have to pay excise duty on these
transactions.
There are two types of ARE documents, ARE-1 and ARE-3. Union Budget
changes For Deemed export also used the same ARE-1. No more ARE-
3.
Reference Document
Specifies what document type the excise invoice reference document or
the ARE reference document is.
Definition : ARE reference document
A document, in India, that you refer to when you create an ARE document.
You create all AREs using an outgoing excise invoice, which must have
the appropriate excise invoice type.
4. Maintain Rejection Codes
Invoices Maintain Rejection Codes
In this IMG activity, you define the rejection codes that are used in the
Incoming Excise Invoices transaction.
Activities
For each rejection code, enter a code and a description. You can also
specify whether the excise duty in the invoice is to be posted to the
CENVAT on hold account, instead of the CENVAT clearing account.

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Rejection Code
Allows you to record why you, for example, rejected or reversed an excise
document. If you reject or reverse the document, enter the reason why
here.
Dependencies
You can define additional codes in Customizing, in Maintain Rejection
Codes.
Rejection Code Description

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5. Specify Which Movement Types Involve
Excise Invoices
Movements India Business
Transactions Incoming Excise
Invoices Specify Which Movement
Types Involve Excise Invoices
In this IMG activity, you specify which movement types relating to goods
receipts involve excise invoices.
The system uses this information during the goods receipt procedure.
When you post a goods receipt using one of the moevement types that
you have specified here, the system prompts you to enter the excise
invoice number.
Note
This option cannot be used for processing goods receipts without
purchase orders.

204

Movement Type (Inventory Management)
Specifies a key for the type of goods movement. Each goods movement
(for example, purchase order to warehouse) is allocated to a movement
type in the system.

205

Definition: goods movement
Inventory Management (MM-IM)
A physical or logical movement of materials leading to a change in stock
levels or resulting in the consumption of the material.
Register
Register RG 23A or RG 23C.

6. Excise Invoice Capture against Delivery in the
Background.
Excise Invoice Capture Against Delivery in the
Background
Use this IMG activity to select the method of processing Excise Invoices
for a particular combination of Plant and Vendor, in the Supplier Self
Service system (SRM-SUS).
In the table J_1I_BCKEXCSUS, you can process Excise Invoices using
the following methods:
Background Processing
Set the Create Excise Invoice Automatically indicator to Yes for a
particular combination of Plant and Vendor. In this case, the
SRM-SUS system automatically processes the Excise Invoices in
the background.
Manual Processing

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Set the Create Excise Invoice Automatically indicator to No for a
particular combination of Plant and Vendor. In this case,
processing of Excise Invoice takes place manually. You can
process Excise Invoices using transaction J1IEX.

Transactions Incoming Excise
Invoices Excise Invoice Capture
Against Delivery in the Background

Account Number of Vendor or Creditor
Alphanumeric key uniquely identifying the document.
Plant

207

Create Excise Invoice Automatically
Instructs the system to automatically create an outgong excise invoice
immediately you create a commercial invoice or a pro forma invoice.
The system creates the excise invoice in the background.
Dependencies
If you want to make use of this function, you must also define the default
plant, excise group, and series groups in Customizing for Excise Duty, by
choosing Business Transactions -> Outgoing Excise Invoices -> Maintain
Default Excise Groups and Series Groups.
B. Sub Contracting
1. Subcontracting Attributes
Transactions Subcontracting
Subcontracting Attributes
The subcontracting attributes help determine conditions for a combination
of an excise group, a transaction type, and a subtransaction type.
The conditions such as the number of excise items per subcontracting
challan, if the nonexciseable materials have to be filtered or not when the
subcontracting challan is created, the movement type groups for issues
and receipts and the hierarchy of determining the excise base value are
mentioned here.
Requirements
Before you continue with this activity, work through the following activities:

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Materials Management -> Inventory Management and Physical
Inventory -> Goods Issue / Transfer Postings -> Define Screen
Layout.
For the movement type 541, maintain the field Purchase Order as
an optional entry or as a required entry.
Inventory -> Output Determination -> Maintain Output Types.
Maintain the output type. On the Default Values tab, maintain the
dispatch time and the transmission medium. Maintain the print
parameter on the Print tab. This output type has to be maintained
in this activity here.
Inventory -> Output Determination -> Assign Forms and
Programs.
Maintain the Program, FORM routine, and the form for the output
type.
Inventory -> Output Determination -> Printer Determination ->
Printer Determination by Plant / Storage Location.
Enter the output device that you use.

209

Excise Group
Dependencies
Sub Transaction Type Text

210

Subcontracting Period
The maximum number of days that the materials can be with subcontractor
without you having to reverse the excise on the CENVAT account.
Dependencies
This information is used when you create a subcontracting challan to
determine on exactly which date the materials have to be returned by.
Movement Type group for Issue
The movement types relevant for issue of materials are grouped for a
combination of transaction type and subtransaction type.
Movement Type Group Receipts
Receipt of materials are grouped for a combination of transaction type and
subtransaction type.
Filter non-Excisable material
This indicator disallows the materials that are not defined under any
Chapter Id onto the challan if it is selected. If it is left empty it allows all the
materials to be part of the subcontracting challan.
Note: These materials need to be reconciled if they are part of the
subcontracting challan.
Number of Items in Excise Invoice
Shows the maximum number of line items that you are allowed to include
in a single outgoing excise invoice.

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Dependencies
This information affects the transactions for creating outgoing excise
invoices for factory sales and for other movements.
This information is used to split the transfer postings' items into multiple
subcontracting challans.
Number range number
Identifies a number range interval within an object or subobject.
Procedure
Enter any two-character code.
Base Value based on Assessable value /
Excise invoice
The hierarchy of determining the excise base value from the assessable
value table or from the excise invoice is dependent on this indicator.
Subcontracting Output Type
J1IF is the output type used for subcontracting challan.
2. Maintain Movement Type Groups
Transaction
code
SPRO
Transactions Subcontracting Maintain
Movement Type Groups

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In this IMG activity, you group movement types together to form
movement type groups.

Movement Type Group
Movement Type Groups will be used to club the movement types based on
their nature (issues or receipts).
These Groups can be defined individually for each subtransaction type of
every transaction type.
Movement Type (Inventory Management)
Specifies a key for the type of goods movement. Each goods movement
(for example, purchase order to warehouse) is allocated to a movement
type in the system.
Special Stock Indicator
Specifies the special stock type.

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If you need to separately manage certain stock (for example,
consignment stock) of a material, the stock type in question is defined
using this indicator.
C. Excise Registers
1. Specify SAPscript Forms
Transaction
code
SPRO
Transactions Excise Registers Specify
SAPscript Forms
In this IMG activity, for each of your company codes, you specify which
SAPscript forms the system prints the excise registers with.
Standard settings
Country Version India includes a number of sample SAPscript forms and
printing programs, which you can use as follows:
Reg. name Lay. no. Form Tcode/Prog
RG 23A Part I 1 J_2IRG23A_PART1 J_2IRAP1
RG 23C Part I 1 J_2IRG23C_PART1 J_2IRCP1
RG 23A Part II 1 J_2IRG23A_PART2 J_2IRAP2
RG 23C Part II 1 J_2IRG23C_PART2 J_2IRCP2
PLA 1 J_2I_PLA J_2IPLA
RG 23 D 1 J_2I_RG23D J_2IRG23
RG 1 1 J_2I_RG1 J_2IRRG1
RT 12 1 J_2I_RT12_ABSTRA J_2IRT12
RT 12 1 J_2I_RT12_ABSTRA J_2IRT12
RT 12 1 J_2I_RT12_3 J_2IRT12

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The layout description can be left blank or an appropriate description
maybe filled in. You may not change the register name. You can have your
own layouts and maintain the name here. If the output device and number
of copies are maintained it is automatically picked up for printing.

Company Code
Register name
Layout number
Form Name

215

Name of a form. The name of a form has a maximum length of 16
characters and can include upper case letters and numeric characters. It
must begin with a letter.
A form in SAPscript is used for page layout. The form contains various
elements, which are used for layout control of the individual pages and
also contain layout information for texts which are to be output on the
individual pages.
To enable text formatting, the appropriate form must be assigned to the
text. In the SAPscript standard text editor this occurs via a menu selection.
A list of all the forms available in the system is displayed, from which a
form can then be selected by the user.
A form definition contains the following elements:
Header data:
This is general information about the form, such as the user ID of the
person who created it, a short text describing the form, and global control
data, such as font used and page format.
Paragraphs:
Paragraphs are the real layout elements in SAPscript. Every text entered
in the editor consists of various paragraphs. The beginning of a paragraph
is indicated by a paragraph tag in the left column of the editor. Paragraph
names and attributes are defined in the form.
Characteristics or attributes which can be defined for paragraphs include
text alignment, line spacing, font used etc.
Character strings:
Character strings are layout elements relevant for a section of text within a
paragraph. They are inserted in the continuous text. The beginning of a
section of text is marked with the character combination <XX> and the end
with </>. Here XX is the name of the character string, which is defined in
the form.

216

Windows:
Windows represent logical units. Although they do not have a physical
position on the page, they have a name which reflects the purpose of the
text to be displayed in the window. For example, an address window, a
window for a letter header etc.
A window type is assigned to every window. The most important type is
the main window. "Continuous" text appears in the main window. The text
can therefore extend over the main windows of several pages. The other
window types, on the other hand, do not allow text which does not fit in the
window to be continued in the window on a subsequent page.
Pages:
One or more pages which are to appear in the form are defined here. The
attributes of a page include the name of the next page and the type of
page numbering. The user determines the page sequence by specifying
the next page and defining the first page of the form in the header data.
Page windows:
A page window is defined by specifying the position and size of a form
window on a form page. The page window describes the position of a
window on a specific page of the form and therefore the area in which text
can be output in the form.
Layout description

217

E. Utilization
a) Utilization Determination
Transactions Utilization Utilization
Determination
In this IMG activity, you specify which CENVAT accounts are to be debited
by the Fortnight Utilization of CENVAT report: When the report
calculates how much excise duty you must remit, it automatically proposes
which CENVAT accounts the duty should be debited to. Here, you specify
those defaults.
You can either:
Debit all the excise duty to one account
Debit the excise duty to more than one account, in which case
you specify which percentage is to be debited to each account
Example
If you want 50% of basic excise duty (BED) to be debited to the RG 23A
account and the remaining 50% to the RG 23C account, you would make
the following settings:
Acct name

BED perc.
RG 23A BED account

50

218

RG 23C BED account

50
Alternatively, to debit all of the BED to the RG 23A account, and then RG
23C account, if there is not enough in the RG 23A account, you would
make the following settings:
Acct name

BED perc. +
RG 23A BED account

X
RG 23C BED account

X
When you come to run the report, the system takes the RG 23A account
because it is the first one you have entered. If this account does not cover
the BED, the system takes the RG 23C account
instead.

219

Excise Group
Account Name
transactions.
Example
RG23ABED
BED percentage
Single-Character Indicator

b) Maintain Minimum Balances for Excise
Accounts
Transactions Utilization Maintain
Minimum Balances for Excise
Accounts
In this IMG activity, you can maintain minimum balances in your excise
accounts. When the balance in these accounts during utilization falls
below this level, the system automatically utilizes funds in the PLA
account.
Activities

220

Maintain the minimum balance amount for the excise accounts. If you have
more than one excise group, you can maintain different minimum
balances.

Excise Group
Account Name
transactions.
Example
RG23ABED
Amount in document currency
Line item amount in document currency.

221

Procedure
During document entry, enter the amount manually. In the last line item,
you can enter a "*" - the amount of the final line item is then the balance of
all the line items previously entered.
Dependencies
Amounts you enter may be changed automatically by the system if the
following postings are made:
Tax adjustments
Cash discount adjustments during net postings.

VII. Tools
A. Long Texts
Movements India Tools Long
Texts
In this IMG activity, you define the different types of long texts that you
want to be able to maintain in the various excise transactions.
There is no limit to the number of types of long texts you can define.
Activities
For each long text, you have to specify which transactions the long texts
are for, so fill out the Object field accordingly:

222

Transactions involving Code
Excise invoices J1IA
Excise JVs J1IH
Subcontracting 57F4 J1IF
Factory sales J1II
Fortnightly payment J1IU
For example, if you want to create a long text for the Incoming Excise
Invoices transaction, enter J1IA.
Then give the long text an ID and description of your choice.

223

Texts: Application Object
In business applications, a text is not considered an independent object. A
text can only exist if it has a superior reference object. A material
inspection text, for example, only exists if there is a corresponding
material. The application object of a text is therefore the global
environment in which a text exists.
Short Text
Default ID for texts to be included
You can use the INCLUDE command to insert the contents of another text
in your text. In order to fully identify the text you wish to insert, it is
necessary to enter a text ID.
If the ID is not specified with the INCLUDE command, the ID specified
here is used, otherwise the ID of the calling text.
Display text name in editor header
This field defines whether the name of a text is displayed in the header line
of the SAPscript text editor together with other information.
<Text type> <Operation>: <Text name> <Text> Language <Key>
The text type is the long text for the text ID, which must be
maintained in Table TTXIT.
The operation is defined by calling the text editor or by the
momentary workstep within the text editor (Change, Display,
Select, Insert).
The text name can be displayed or suppressed with the field
TDSHOWNAME in Table TTXID.

224

An additional text can, optionally, be specified from the program
application when the text editor is called.
The language key is the language assigned to the text.
B. Number Ranges
Transaction code J1I9
Movements India Tools Number
Ranges
You can maintain the number ranges for all CIN Number range objects
using this transaction
Activities
Please maintain the number ranges for the folllowing objects The no nr
has to be '01' for all
1. j_1iintnum
At an Excise group
1. j_1irg23a1
2. j_1irg23a2
3. j_1iRG1
4. j_1irg23c1
5. j_1irg23c2
6. j_1ipla2

225

7. j_1iintpr2
8. j_1irg23d
9. j_1irg1_t ( material level)
10. j_1iconpla ( if Consolidated PLA is used )
At Series group
1. j_1iexcloc
2. j_1iexcexp
3. j_1idepinv
4. j_1i57Fc ( 57F Challans )

226

227

228

229

C. Message Control
Movements India Tools
Message Control
In this activity, you can specify whether a given message should appear as
a warning message or an error message.
Activities
Enter each message that you want, specifying whether it should apply to
one user or all users.

230

231

Application Area
The indicator denotes the application area to which the error message
belongs.
Procedure
Display the possible input values with F4.
If you want a message to be output, you must specify the message class
indicator in a program as follows:
<program_name> MESSAGE ID <message_class_ID>
Message number
Transaction Code
a business task.
User Name in User Master Record
Message Type
Message type (E,I,W,...)

232

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Hand Book for SAP Taxation-India

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