MM-CIN Imp

Materials Management
User Manual
Country India (Taxes)

Statement of Confidentiality
This document contains information that is proprietary and confidential to CVSIT Services (I) Pvt. Ltd, which
shall not be disclosed outside “PHARMASYS”, transmitted, or duplicated, used in whole or in part for any
purpose other than its intended purpose. Any use or disclosure in whole or in part of this information without
prior written permission of CVSIT Services (I) Pvt. Ltd is prohibited.
Any other company and product names mentioned are used for identification purposes only, and may be
trademarks of their respective owners.
© Copyright 2001, CVSIT Services (I) Pvt. Ltd

TABLE of CONTENTS
COUNTRY INDIA VERSION......................................................................................................................ii
Excise Master...............................................................................................................................................ii
Material Chapter ID combination............................................................................................................ii
Material Assessable value......................................................................................................................iii
CENVAT Determination........................................................................................................................iii
Vendor Excise details.............................................................................................................................iv
Excise tax rate.........................................................................................................................................iv
Exceptional material excise rate..............................................................................................................v
Procedure for Claiming CENVAT for Raw Materials..............................................................................vii
Create the Purchase Order.....................................................................................................................vii
Goods Receipt to Unrestricted (Movement type: 101)..........................................................................vii
Capture the Vendor’s Excise Invoice.....................................................................................................ix
Post the Vendors Excise Invoice..........................................................................................................xiii
Display Excise Invoice..........................................................................................................................xv
Procedure for claiming CENVAT For Capital Items..............................................................................xvii
Create the Purchase Order for Capital goods......................................................................................xvii
Goods Receipt to Unrestricted (Movement type: 101)........................................................................xvii
Capture the Vendor’s Excise Invoice...................................................................................................xix
Post the Vendors Excise Invoice........................................................................................................xxiii
Display Excise Invoice........................................................................................................................xxv
Subcontracting without payment of excise duty.....................................................................................xxvi
Create Subcontracting Purchase order................................................................................................xxvi
Create transfer Posting of materials sent out for sub-contracting with reference to Subcontractor PO.
xxviii
Create Subcontracting challan............................................................................................................xxxi
Post goods receipt (MIGO)...............................................................................................................xxxiv
Reconcile Subcontracting challan......................................................................................................xxxv
List of subcontracting challans .......................................................................................................xxxvii
Complete/Reverse/Recredit Subcontracting challan......................................................................xxxviii
Change Subcontracting challan........................................................................................................xxxix
Display Subcontracting challan........................................................................................................xxxix
Subcontracting with payment of excise duty........................................................................................xxxix
Create subcontracting order for conversion charges..............................................................................xl
Providing input material to subcontractor from outside vendor.............................................................xl
Providing input material to subcontractor from Rallis manufacturing unit............................................xl
Create an outgoing excise invoice for the materials. ............................................................................xli
Confirming finished goods stock at Subcontractor’s premises............................................................xlii
Material requirement of depot on subcontractor.................................................................................xliii
Despatch of material from subcontractor to depot..............................................................................xliv
Goods receipt at Depot.......................................................................................................................xlvii
Procedure for claiming CVD benefit for imported material...................................................................xlvii
Create Purchase order for imports......................................................................................................xlvii
Entering invoices for Bill of Entry...........................................................................................................l
Capturing Excise invoice (Bill of Entry)...............................................................................................liii
Post goods receipt (MIGO).....................................................................................................................lv
Post Excise Invoice (Bill of Entry).........................................................................................................lv
Creation of Excise Registers.....................................................................................................................lvii
Updation of Registers (RG1)................................................................................................................lvii
Receipt updation of Registers (RG1)..............................................................................................lviii
Issues updation of RG1 register for captive consumption..............................................................lxii
Data extraction..................................................................................................................................lxviii
Register printout...................................................................................................................................lxx
PHARMASYS MM CIN user-manual
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COUNTRY INDIA VERSION
Excise Master
Menu path : India Localisation  Indirect Taxes  Excise Rate maintenance (J1ID)
Material Chapter ID combination
Select material chapter ID combination box and then press icon.
Enter material, plant and chapter ID combination in the respective tabs.
If the material can be sent outside for subcontracting purpose then put a tick in the check box
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In the material type tab select appropriate material type.
If it is a input material then select the tab Raw material
If it is capital item then select Assets.
If it is a inhouse produced material then select RG1.
Select GR –X ref to specify whether credit is allowed only for single goods receipt or multiple
goods receipt with single credit or multiple goods receipt with multiple credits.
In the declared column enter X if the material is declared to excise
Also enter the date of declaration.

Material Assessable value
In this section we enter the assessable value of material which is used for the purpose to
determine how much excise you can credit to CENVAT account when creating a subcontracting
challan.
Enter the combination plant, material number, valid from , currency , Assessable value.
CENVAT Determination
In this section you have to enter the input and output relationship of the material with combination
of plant, default indicator for modvat.
Companies are required to file with the Excise authorities, a list containing the excisable finished
products manufactured and the excisable input materials required for such production, to avail
Modvat.
It is possible that an input material may be used in the production of more than one finished
product. However, if such a material is mainly used for the manufacture of a particular finished
product then the input material is identified to be the default material. The default indicator
is marked for such material.
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Vendor Excise details
In this section the vendor excise details are maintained.
The vendor number, his excise registration details, ECC no, Excise Range, Excise Division,
Excise Commissionerate, CST no, LST no, Permanent account number, Excise ind for vendor,
SSI status (if he is a SSI vendor), Type of vendor and CENVAT (This is applicable for SSI vendor
only who has participated in the CENVAT scheme).
In the vendor excise details appropriate excise indicator should be selected from the drop down
menu of tab
In the type of vendor you have to select appropriate tab i.e. manufacturer, or First stage dealer,
Importer, etc.
Excise tax rate
In this section you maintain the combination of chapter ID and final indicator (combination of plant
and vendor indicator), valid from date , valid to date and percentage of excise duty
This indicator and chapter ID combination determines the excise duty for the material.
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Exceptional material excise rate
In this section you maintain such materials which are having different excise duty rates or having
excise rate on basis of unit of measurement i.e. per no/per litre etc.
In the above case the combination of material and vendor is mentioned for a plant.
The excise rate mentioned is Rs per unit (Litre)
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Page vi of 75
Procedure for Claiming CENVAT for Raw

Materials
Create the Purchase Order

Follow standard PO creation process
Goods Receipt to Unrestricted (Movement type: 101)
Menu Path: Logistics  Materials Management  Inventory management Goods movement

 goods receipt  for purchase order Purchase order no. Known (MIGO)
a. Enter the PO number, Vendors Delivery Challan Number
b. Press Enter – at this point of time system will copy all the relevant information from PO
and a Excise Invoice tab will appear in the Header screen as shown below ,select Only Part
I on this tab and check the Excise group.
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c. Enter the Received Quantity in the Quantity tab in field Quantity in Unit of entry.
d. Enter receiving Storage Location in Where tab. Here check the stock type in which
material is going to receive. If some text needs to be added regarding the goods receipt
enter it in Text field.
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e. Check the Excise Details related to the received material in Excise Item tab in Detail Data
screen as shown below.
f. Check the Item OK check box and press Check button in tool bar to check the
entries
g. Press Post button to save the Goods receipt ,system will generate the Goods receipt
Document. System will Automatically update the Part I register as soon as the GR is
made.
Capture the Vendor’s Excise Invoice
Go to CIN transaction
Menu Path: User menu  Indirect taxes  Procurement  Excise invoice  Incoming Excise
invoice  Individual Processing  Capture/Display
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a. Select Capture Excise Invoice and Goods Receipt in windows above the Header.
b. Enter Goods Receipt Document number generated in STEP 2.
c. Press Enter, following screen will appear
d. Enter Vendor Excise Invoice Number ,Excise Invoice Date ,Excise group – A1 onwards (or
any other appropriate excise group).
e. If material had directly came from different vendor, Enter vendor code in Ship from field in
Miscellaneous tab.
f. If Excise Invoice is faulty and still want to take the credit for the excise invoice, enter the
rejection code .
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g. Check the Material Chapter Heading, Material type in Item tab in Detail Data screen.
h. Check the Quantity in Quantity tab
i. Check the Duty rate in Duty rate tab.
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j. Check duty values and Tax amount for the material in Duty value tab.
k. Check the Part I entries which are created immediately after the GR in Part I tab.
h. Tick the Item OK check box and Press button to check the entries.
i. Press save button to post the entry, Excise Invoice will be captured and following
screen for information will be displayed.
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Post the Vendors Excise Invoice
invoice  Individual Processing  Change/Display/Post/Cancel
a. Select Post and Vendor Excise Invoice in windows above the Header.
b. Enter Vendor Excise Invoice which is captured in previous Step and press Enter, following
screen will appear with all the details captured from the Vendor ‘s Excise Invoice.
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c. Check the details and simulate to check the postings using Simulate button
.Following screen will appear. Check the postings
d. Press the Post bottom , this post the Part II entry , following screen will appear
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Display Excise Invoice

•
• Menu Path: User menu  Indirect taxes  Procurement  Excise invoice  Incoming
Excise invoice  Individual Processing  Change/Display/Post/Cancel
• Select Display and Vendor Excise Invoice in windows above the Header .Here you can
display both the Part I and Part II entries in one document only. Check the Excise
registers in which entry is made.
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Procedure for claiming CENVAT For

Capital Items
Create the Purchase Order for Capital goods

Follow standard PO creation process and note the following things
In the Account assignment category enter “A”.
The system will prompt to put the asset number in the account assignment tab.
Put the asset number in the account assignment tab.
All the other details are as per the procedure of standard purchase order.
Save the purchase order.
Goods Receipt to Unrestricted (Movement type: 101)

a. Enter the PO number, Vendors Delivery Challan Number
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b. Press Enter – at this point of time system will copy all the relevant information from PO
and a Excise Invoice tab will appear in the Header screen as shown below ,select Only Part
I on this tab and check the Excise group.
c. Enter the Received Quantity in the Quantity tab in field Quantity in Unit of entry.
As described above in procedure for claiming modvat for raw material.
d. Enter receiving Storage Location in Where tab. Here check the stock type in which
material is going to receive. If some text needs to be added regarding the goods receipt
enter it in Text field.
As described above in procedure for claiming modvat for raw material.
e. Check the Excise Details related to the received material in Excise Item tab in Detail Data
screen as shown below.
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f. Check the Item OK check box and press Check button in tool bar to check the
entries
g. Press Post button to save the Goods receipt ,system will generate the Goods receipt
Document. System will Automatically update the Part I register as soon as the GR is
made.
l. Press Enter, following screen will appear
Capture the Vendor’s Excise Invoice
Go to CIN transaction
invoice  Individual Processing  Capture/Display
a. Select Capture Excise Invoice and Goods Receipt in windows above the Header.
b. Enter Goods Receipt Document number generated above.
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a. Enter Vendor Excise Invoice Number ,Excise Invoice Date ,Excise group – A1 onwards (or
any other appropriate excise group).
b. If material had directly came from different vendor, Enter vendor code in Ship from field in
Miscellaneous tab.
c. If Excise Invoice is faulty and still want to take the credit for the excise invoice, enter the
rejection code .
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d. Check the Material Chapter Heading, Material type in Item tab in Detail Data screen.
e. Check the Quantity in Quantity tab
f. Check the Duty rate in Duty rate tab.
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g. Check duty values and Tax amount for the material in Duty value tab.
h. Check the Part I entries which are created immediately after the GR in Part I tab.
h. Tick the Item OK check box and Press button to check the entries.
i. Press save button to post the entry, Excise Invoice will be captured and following
screen for information will be displayed.
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Post the Vendors Excise Invoice
invoice  Individual Processing  Change/Display/Post/Cancel
a. Select Post and Vendor Excise Invoice in windows above the Header.
b. Enter Vendor Excise Invoice which is captured in previous Step and press Enter, following
screen will appear with all the details captured from the Vendor ‘s Excise Invoice.
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e. Check the details and simulate to check the postings using Simulate button
.Following screen will appear. Check the postings
f. Press the Post bottom , this post the Part II entry , following screen will appear
Page xxiv of 75
Display Excise Invoice

•
• Menu Path: User menu  Indirect taxes  Procurement  Excise invoice  Incoming
Excise invoice  Individual Processing  Change/Display/Post/Cancel
• Select Display and Vendor Excise Invoice in windows above the Header .Here you can
display both the Part I and Part II entries in one document only. Check the Excise
registers in which entry is made.
Page xxv of 75
Subcontracting without payment of excise

duty
When you issue materials to a subcontractor, you need to keep track of what materials you have
issued and when they have to be returned by.
The reason for this close monitoring has to do with India’s tax law. Under excise law 57AC, when
you send materials to a subcontractor for processing, you are not required to pay any excise duty,
even though the materials have left your premises. However, if the materials have not been
returned to you within a given length of time specified by the law (in 2000, 180 days), you will
have to reverse any excise credit that you posted when you purchased the materials. In the case
of materials that you have manufactured in-house, you will have to post credit entries to the
extent of the CENVAT rate of the assessable value of the materials.
Create Subcontracting Purchase order

To create a subcontract order, proceed as follows:
1. Enter the material you want to order and the item category for subcontracting (L) in the
order item.
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Select the line item and click the icon.

Press Enter to display the screen for component processing.
2. Enter the components that the vendor requires to manufacture the ordered material (end
product).
Note the following:
You do not need to enter the date required for the components. This date is proposed by the
system when you press Enter. It is calculated as follows:
Delivery date of the item minus planned delivery time
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If you do not want the quantity of the components to be changed if the order quantity of the end
product is altered, set the indicator Fixed quantity.
If you want to assign a particular batch of the component to the vendor for the manufacture of the
ordered material, enter the desired batch.
You can determine whether the components are available on the date required by selecting
Component List → Component Availability.
3. If you entered a bill of material as the material in the subcontract order, the components
are created automatically.
If you want to determine the components in the bill of material at a later date (for example, if the
bill of material is subsequently changed), choose Item → Goto → Components → New BOM
explosion. The existing components are deleted and redetermined in the bill of material.
4. Save the purchase order.

When you print the purchase order, the components are printed per order item.
Create transfer Posting of materials sent out for sub-contracting with
reference to Subcontractor PO.
Path : Logistics Materials Management Purchasing Purchase Order Reporting

 SC Stocks per Vendor.
1. On the initial screen enter the Subcontractor (Vendor) code in Vendor, Material number to be
given to Subcontractor in Component Provided and Plant and Execute button for going to the
next screen.
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2. After executing following screen will appear,
3. Select the check box in front of the Material number and press the Post goods Issue tab in
the tool bar as marked with arrow, you will get the following pop up
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4. Here enter the Quantity in Quantity field to be transferred to Subcontractor and the
storage location in Storage Location field from which stock is available for removal.
5. If the material is managed in Batches , then enter the Batch Number in Batch field.
6. Press on the Popup screen and a following message will be flashed
7. System will generate the Material Document Number, Note this number. For noting the
Material number go to following transaction
Path : Logistics Materials Management Inventory Management Environment

List Display  Material Documents (MB51),
1.Enter Material number which you have despatched ,Plant number, Storage Location from
which you have despatched Subcontractor Number (Vendor Number), Movement Type 541
and Posting Date in the following screen.
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Press execute button to go to the next screen, the following screen will be seen,
From this note the Material document and generate the Dispatch Challan as described in
Excise Procedures.
Create Subcontracting challan

You create challans from transfer orders to accompany any materials that you send to
subcontractors under rule 57AC. In this respect, they are an extended form of delivery note, with
Page xxxi of 75
additional information about the excise duty on each material that you have supplied. Materials
that are not liable to excise duty do not have to be included in the challan.
As the subcontractors return the finished goods to you, you record the returns in the challan, to
make sure that all are returned within the allotted time limit.
If the finished goods returned to you by the subcontractor are of substandard quality, you can
also create a subcontracting challan from the returns order
Menu path – India localisation menu (J1ILN)  Indirect taxes  Procurement  Subcontracting
 Subcontracting challans  Create (J1IF01)
Enter material document number generated while making transfer posting document.
Press Enter
In the overview tab we can see the transfer posting document number in the Reference
document tab.
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In the org data tab we can see the company code, plant, excise group, excise series group and
business area.
Select quantiy overview tab and check the quantity.
Press save
Note down the document number.
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This is the consignment document that you will send to the subcontractor along with the materials
that are to be processed.
You send the materials to the subcontractor, along with a printout of the subcontracting challan.
The subcontractor processes the materials and returns the finished goods. When the goods are
delivered back to you, the storeperson posts goods receipt.
The delivery may not necessarily cover all the goods from the challan: It may also include goods
from a number of different challans. The SAP functions allow for this eventuality.
Post goods receipt (MIGO)

Enter the PO number
Check the quantity in the quantity tab.
Select Only Part 1 in the excise tab.
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Press check and a signal will appear.
Select save icon.
Note down the goods receipt document number.
Reconcile Subcontracting challan
Menu path – India localisation menu (J1ILN)  Indirect taxes  Procurement  Subcontracting
 Subcontracting challans  Reconcile Quantity (J1IFQ)
Enter the following data:
In the Material Doc. and Mat. Doc. Year fields, enter the number of the goods receipt document
and the year in which it was created.
In the table below, enter the challan numbers and the years in which they were created.
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Press icon.
A new screen appears. At the top is the information about the goods receipt (or other document);
at the bottom is the information from the challans that you have entered.
Check the challan numbers against which the material was sent to subcontractor.
If you have sent a subcontractor a number of different challans, all containing the same material,
you can automatically specify that the materials should come from the oldest challans first, by
choosing .
Otherwise, for each challan, enter manually the quantity of materials has been returned, and
choose to refresh the display.
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Choose and check the tab open quantity and assigned quantity.
Once you have accounted for all the materials in the goods receipt, save the challan by choosing
icon .
You get the message material document xxxxx year xxxx was successfully reconciled.
List of subcontracting challans

You use this report to create a list of subcontracting challans. Depending on what selection
criteria you enter, you can use it for finding out:
a) Which challans are still with the subcontractor and are due back the following week
b) Which challans you can make a recredit for
c) Which challans have been entered for a goods receipt, but not reconciled
d) Which challans' reference documents have been canceled
e) Annexure IV
Menu path : India Localisation menu (J1ILN) → Indirect Taxes → Procurement →

Subcontracting → Reports → Challan Listing (J1IFR)
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You can give any selection criteria for generating the report.
e.g. We select the challan status – F which means to show list of challans with status fully
reconciled.
Press
Complete/Reverse/Recredit Subcontracting challan
Menu Path : India Localisation menu  Indirect Taxes → Procurement → Subcontracting →

Subcontracting Challans → Complete/Reverse/Recredit.
Enter the challan number and year.
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Choose
Select Complete Challan .
Save the challan .
Note down the message as given below.
Change Subcontracting challan

Subcontracting Challans → Change (J1IF11).
Enter the challan number select
The challan is displayed.
Display Subcontracting challan

Subcontracting Challans → Display(J1IF12).
Enter the challan number select

The challan is displayed.
Subcontracting with payment of excise

duty
Page xxxix of 75
This scenario covers the Rallis requirement, where material is sent for conversion charges to
subcontractor on payment of excise duty and finished product is received at the depots from the
subcontractor.
Create subcontracting order for conversion charges
Create subcontracting order as per documentation in 1.4.1.

Providing input material to subcontractor from outside vendor.
Create a purchase order on the vendor supplying input material as per the documentation given
in vol.1 under heading create purchase order for stock material.
Please note the following things.
a) Delivery address in the item details should be mentioned subcontractor’s address and the SC
check box should be selected.
Providing input material to subcontractor from Rallis manufacturing
unit
Create transfer posting document as per documentation in 1.4.2 for the input materials which are
required to be supplied from Rallis manufacturing units.
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Create an outgoing excise invoice for the materials.

You send the materials to the subcontractor, together with the excise invoice.
Menu path : India localisation menu  Indirect taxes  Sales/outbound movements  Excise
invoice  For other movements  Excise invoice for other movements (J1IS)
Press .
Select material document number (transfer posting number from document prepared in 1.5.4)
Press
Press .
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Note down the number.
Press .
Press .
Select
Please note down the excise invoice number.
Select from the Pull down menu Goto  Print document.
Take a printout and send the material from Rallis manufacturing site.
Confirming finished goods stock at Subcontractor’s premises.
When input material is converted into finished product, subcontractor will give a document of
production confirmation and on basis of this document the Rallis Regional office person will make
a goods receipt against the subcontracting purchase order.
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To do goods receipt process please follow the standard process as mentioned in the
documentation in vol 1 under the heading Inventory management  goods receipt against
purchase order.
Select the entry Only part 1 in the excise tab.
Please note that do not press the icon.

Material requirement of depot on subcontractor.
Create a stock transport purchase order from depot on regional office (plant in SAP).
Menu path : Sap easy access menu  Logistics  Materials Management  Purchase order 
Create  Vendor / Supplying plant known. (ME21N)
Select Stock transport order from the first tab and the screen will change.
Enter supplying plant in the supplying plant tab
Mention the depot plant number in the receiving plant tab.
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Put the other terms and conditions as per the standard purchase order as mentioned in the
documentation in volume 1 in create purchase order for stock items.
Save the purchase order.
Note down the number.

Despatch of material from subcontractor to depot.
The regional office person will capture the excise invoice for the material which is being
despatched to the depot.
Please follow the standard process for claiming cenvat credit for raw materials as mentioned in
the documentation above.
Then, regional office person will create a outbound delivery with reference to the stock transport
purchase order mentioned above in 1.5.6.
The regional office will also instruct the subcontractor to enter the outbound delivery in the
despatch excise invoice. The outbound delivery number will be used as a reference for making
the goods receipt at depot and the subcontractor excise invoice will be put in the reference text
field while making goods receipt.
Menu path : Sap easy access menu  Logistics  Logistics Execution  Outbound process 
Goods issue for Outbound delivery  Create  Collective processing of documents due for
delivery  Purchase orders (VL10B)
Select
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Select the line item and Press .
Select
Select
Select
Select and then select .
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Enter storage location SC01 (storage location having address of subcontractor) and put the
quantity to be despatched from subcontractor as picking quantity.
Select the ikon
Message will appear repleshment delivery saved.
The material gets transferred from the storage location of Regional office into stock in transit of
the depot plant.
Run report MB5T and enter the material number and receiving plant to see the stock in transit.
Select .
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The stock in transit is displayed.

Goods receipt at Depot.
The depot will make goods receipt with respect to the outbound delivery number which is
mentioned on the subcontractor’s excise invoice.
The procedure for making goods receipt will be standard as per the procedure mentioned earlier
in documentation volume 1 – goods receipt with reference to purchase order. (instead of
purchase order, user has to select the outbound delivery in the reference tab).
Save the goods receipt.
Procedure for claiming CVD benefit for

imported material.
Create Purchase order for imports
Create a purchase order for the materials that you want to order using the standard procedure as
mentioned in above documentation but when you fill out the item information.
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Make sure that you observe the following:
Invoice tab
Enter a zero-rate tax code
Deselect GR-based IV
Conditions tab
a. Select the countervailing duty (CVD) condition and choose .
b. In the Rate field, enter the rate of CVD that will be levied on the material when it
arrives at customs.
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c. In the vendor field, enter the vendor master record that you have created for the
customs office.
To do this select the CVD condition which is marked by arrow and then press button in
the conditions tab.
Enter the custom vendor number in the vendor field.
The vendor ships the goods to you.
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When the goods arrive in India, they go through customs. The customs officers issue a bill of
entry for the goods, which is in effect an invoice for the CVD on the goods. Once they have
inspected the goods, they send them on to you.
Entering invoices for Bill of Entry
The goods arrive at your plant, together with the bill of entry. In order to record the bill of entry in
the system
The excise clerk enters a invoice for the bill of entry.

To enter the invoice for bill of entry follow standard invoice verification procedure but make sure
you observe following
Header Data
• Basic data tab
o In the Amount field, enter the amount of countervailing duty (CVD) stated on the
bill of entry in rupees. Also enter the amount of other custom duties if any.
o Do not enter any other taxes.
• Details tab
o Assuming you specified in the purchase order that the CVD was to be paid to the
customs office, the system shows the customs office as the vendor. If not, enter
the customs office’s vendor master record in the Inv. party (Invoicing party) field.
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Line Items
On the PO reference tab, enter data as follows:
Enter the number of the purchase order related to this delivery.
If you only created one purchase order for the goods, enter the purchase order number and
select Planned delivery costs.
If you sent more than one purchase order to the vendor and it sent you all of the ordered
materials together in one shipment:
i. Choose .
ii. Enter all of the purchase order numbers in the table.
iii. Select Planned delivery costs.
iv. Select Deliveries and deselect Returns.
v. Choose Adopt.
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In both cases, the system displays the line items in the line item overview
For each line item:
In the Amount field, enter the amount of CVD on the item (if you have more than one
item, you may have to work the amount out manually).
In the Quantity field, enter the quantity of goods on the invoice.
Enter a zero-rated tax code.
Choose Simulate.
A dialog box appears with a list of the postings that will be made to Financial Accounting (FI).
Choose Post.
Note down the document number (commercial invoice number)
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Capturing Excise invoice (Bill of Entry)
Menu path : India Localisation menu (J1ILN) → Procurement → Excise Invoice → Incoming
Excise Invoice → Individual Processing → Capture/Display.
In the top line:
Select Capture Excise Invoice
Select Purchase Order.
Enter the purchase order related to the bill of entry.
Choose
A dialog box appears.
3. Enter the number of the invoice that you entered for the bill of entry and choose
If you need to enter any other purchase orders, enter the number in the top line as for step 3.
Note that this time, you do not need to enter the invoice number.
Enter other data as required.
Note that the countervailing duty is displayed in the basic excise duty fields.
Page liii of 75
Enter the bill of entry number and date in the excise invoice number and Doc date field
respectively
Save the excise invoice.
Page liv of 75
Post goods receipt (MIGO)

Enter the PO number
Select
Select and then
Note down the Goods receipt number
Post Excise Invoice (Bill of Entry)
Page lv of 75
Menu path : India Localisation menu (J1ILN) → Procurement → Excise Invoice → Incoming
Excise Invoice → Individual Processing → Change/Display/Post/Cancel.
Select Post CENVAT and Vendor Excise Invoice
Enter the number of the excise invoice that you created for the bill of entry.
Check that the data is correct.
Choose Simulate CENVAT
A dialog box appears with a list of the accounting entries that will be made to transfer the CVD
from the clearing account to the excise duty account.
To close the dialog box, choose .
If the data is correct, the signal is choose Post CENVAT.
Page lvi of 75
The system posts the CENVAT (CVD Amount) and creates a corresponding entry in Part II or the
appropriate excise register.
Creation of Excise Registers

You follow this procedure to create the excise registers.
Three steps are to be followed for creation and printing of the excise registers
Updation of Registers (RG1).
The updation of registers includes receipts and issues.
The classification of receipts and issues is done by selecting the appropriate

classification as per the table given below.
Page lvii of 75
Receipt updation of Registers (RG1).

Process of receiving material in RG1 can be given below step by step.
a. The inhouse produced material will be confirmed by way of process order

confirmation in storage location at plant (e.g.PL01). Stock will be available in the system in
storage location PL01.
b. See stock overview(MMBE)
c. Now the stock in production location is moved in RG1 by transfer posting (movement
type 311)
Page lviii of 75
Save the document and note down the number.
d. Now go to the
Menu Path : India Localisation menu (J1ILN)  Indirect Taxes → Registers → Excise Tax →
Update RG 23A/C Issues and RG 1.
On the selection screen, you specify
• Which documents you want to cover:
o Enter general organizational details in the Company details group box.
o Enter details about the documents that you want to include in the register, in the
Document header and Document details group boxes.
Select movement type 311 and storage location FG01 (RG1 location).
Also select appropriate classification type (RMA) in case of receipt from manufacture.
Page lix of 75
• Select register RG1, in the Registers group box
Select
Page lx of 75
Then select
The signal becomes
Then put tick in checkbox and select for updating receipt in RG1 register.
RG1 Register is updated and the screen looks as given below.
e. See stock overview again (MMBE)
Page lxi of 75
Issues updation of RG1 register for captive consumption.

When a RG1 material (technicals inhouse produced) is used for captive consumption (for
formulation) following steps will be followed.
1. Stock of technicals will be available in RG1 storage location (FG01).
See stock overview of material.
Page lxii of 75
2. Material movement takes place from RG1 location to formulation location by transfer
posting. (movement type 311).
Save and note down the transfer posting document number.
When a material is removed from RG1 for captive consumption an excise invoice has to be
prepared with zero excise duty and mentioning for captive consumption.
3. Excise invoice is created in system with reference to transfer posting document.

Menu path : India Localisation menu  Indirect taxes  Sales/Outbound movements  Excise
Invoice  For other movements  Excise invoice for other movements (J1IS)
Select .
Page lxiii of 75
Enter the reference material document number (transfer posting) and excise group, series group
and customer number (put the customer number of manufacturing unit)
Press enter and following screen appears
Press .
4. Post excise invoice.
Menu path : India Localisation menu  Indirect taxes  Sales/Outbound movements  Excise
Invoice  For other movements  Excise invoice for other movements (J1IS)
Select .
Enter the internal excise number generated.
Page lxiv of 75
Press .
Select .
Note down the excise invoice number.
5. Print the excise invoice if required.
Page lxv of 75
Select excise invoice and print.
6. Updating the issue of material in RG1 register.
Menu Path : India Localisation menu (J1ILN)  Indirect Taxes → Registers → Excise Tax →
Update RG 23A/C Issues and RG 1 (J1I5).
On the selection screen, you specify
• Which documents you want to cover:
o Enter general organizational details in the Company details group box.
o Enter details about the documents that you want to include in the register, in the
Document header and Document details group boxes.
Select movement type 311 and storage location FG01 (RG1 location).
Also select appropriate classification type (IWT) in case of removal without payment of duty for
transfers.
• Select register RG1, in the Registers group box
Page lxvi of 75
Select
Then select
The signal becomes
Then put tick in checkbox and select for updating issues from RG1 register.
RG1 Register is updated and the screen looks as given below.
7. See stock overview again (MMBE)
Page lxvii of 75
Data extraction
Menu path : India localisation menu  Indirect taxes  Registers  Excise Tax  Extract
(J2I5)
On the selection screen enter the excise group, start date (of the month) and end date (of the
month) and select the registers for which the data extraction is required.
Page lxviii of 75
Select
Following screen appears
Page lxix of 75
Register printout
You use this report to print out your excise registers.
Menu path : India localisation menu  Indirect taxes  Registers  Excise Tax  Print utility
program (J2I6)
On the selection screen select the registers which are to be printed.
Select
On the selection screen select the excise group, start date (of the month) and end date (of the
month).
Select
Page lxx of 75
Select suitable printer and print the register.
Page lxxi of 75

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Materials Management

Country India (Taxes)

© Copyright 2001, CVSIT Services (I) Pvt. Ltd

COUNTRY INDIA VERSION

Material Chapter ID combination

Select material chapter ID combination box and then press icon.

Enter material, plant and chapter ID combination in the respective tabs.

In the material type tab select appropriate material type.

If it is a input material then select the tab Raw material

If it is capital item then select Assets.

If it is a inhouse produced material then select RG1.

In the declared column enter X if the material is declared to excise

Also enter the date of declaration.

Vendor Excise details

In this section the vendor excise details are maintained.

Exceptional material excise rate

The excise rate mentioned is Rs per unit (Litre)

Procedure for Claiming CENVAT for Raw

Create the Purchase Order

Goods Receipt to Unrestricted (Movement type: 101)

Menu Path: Logistics  Materials Management  Inventory management Goods movement

a. Enter the PO number, Vendors Delivery Challan Number

Capture the Vendor’s Excise Invoice

c. Press Enter, following screen will appear

i. Check the Duty rate in Duty rate tab.

Post the Vendors Excise Invoice

.Following screen will appear. Check the postings

Display Excise Invoice

Procedure for claiming CENVAT For

Create the Purchase Order for Capital goods

In the Account assignment category enter “A”.

Put the asset number in the account assignment tab.

Save the purchase order.

Goods Receipt to Unrestricted (Movement type: 101)

Menu Path: Logistics  Materials Management  Inventory management Goods movement

a. Enter the PO number, Vendors Delivery Challan Number

l. Press Enter, following screen will appear

Capture the Vendor’s Excise Invoice

f. Check the Duty rate in Duty rate tab.

Post the Vendors Excise Invoice

.Following screen will appear. Check the postings

Display Excise Invoice

Subcontracting without payment of excise

Create Subcontracting Purchase order

Select the line item and click the icon.

Note the following:

Delivery date of the item minus planned delivery time

product is altered, set the indicator Fixed quantity.

4. Save the purchase order.

Path : Logistics Materials Management Purchasing Purchase Order Reporting

2. After executing following screen will appear,

6. Press on the Popup screen and a following message will be flashed

Path : Logistics Materials Management Inventory Management Environment

Create Subcontracting challan

Select quantiy overview tab and check the quantity.

Note down the document number.

Post goods receipt (MIGO)

Menu Path: Logistics  Materials Management  Inventory management Goods movement

Enter the PO number

Check the quantity in the quantity tab.

Select Only Part 1 in the excise tab.

Press check and a signal will appear.