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SD2018 - SD CIN (Country Version India) v1.

SD CIN (Country India Version)

India SAP CoE, Slide 1

SD CIN (Country Version India)


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SD CIN (Country Version India)


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Purpose
CIN as the term denotes means Country Version India. It comprises of functionalities designed for the laws and business practices pertaining to the country, over and above the generic SAP system functionalities. It contains India Specific functions, mainly related to Financials and Logistics. The main areas are as follows: Excise duty and the central value-added tax system (CENVAT) The tax levied on the difference the output and the input value. This is also referred as MODVAT. Manufacturer can setoff the excise duty paid on their inputs materials against their output duty. Withholding tax (also known as tax deducted at source) Sales tax Maintenance and printing of statutory excise registers

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Use
Country Version India comes ready configured with all the settings, Sales processing CIN covers the following Indian statutory requirements.
1. Calculation of Excise duty based on Material and Chapter ID combination 2. Calculation of Excise bases on concessional forms 3. Calculation of Output Tax based on Interstate Transactions 4. Maintenance and printing of Excise / Sales Tax details of customer on Invoices 5. Usage of Pre-printed Invoice Numbers 6. Excise Invoice Number should start with No.1 for every government fiscal year in Depot 7. Maintenance of RG23D register in Depots 8. Reproduction of all Excise details on depot Invoices with respect to source document 9. Maintaining separate Folio number for all incoming material in Depot 10. Maintain Entry number for each Folio for outgoing material in Depot 11. Levy of service tax on all services rendered from Factory / Depot 12. Payment of Cess on certain category of Material if applicable 13. Maintenance of excise rules.

The customer and vendor masters have been enhanced to store taxation details specifically for India.
It provides predefined sample pricing procedures, including all taxes, and settings for automatic account determination to the appropriate Excise Accounts .
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Challenges
1. 2. 3. Tax structure for same material varies as state changes Excise rate is different for different products Printouts / forms need to develop as per laws

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SD CIN (Country Version India)


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SD CIN (Country Version India)


Most of the country-specific functions for India relate to Financials and Logistics to meet Statutory requirements such as The main areas are as follows:

Financial Accounting
The country template for India comes with its own chart of accounts, CAIN. It contains all accounts common to most businesses in India. It also takes into account the requirements of Schedule VI of the Companies Act 1956. The country template also contains settings for automatic accounting postings The country template for India comes with its own financial statement version, BAIN.

Material management
A business document, in India, that your vendor sends you when it delivers excisable goods. It lists the goods and states how much excise duty applies on them. Your use the excise invoice to claim back the excise that you have paid from the excise authorities.

Sales & distribution


Country Version India comes with four pricing procedures as follows: 1) JINFAC (Sales from manufacturing plants) 2) JINEXP (Export sales) 3) JINDEP (Sales from depots) 4) JINSTK (Stock transfers)

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Excise Duty
The system covers all types of excise duty, all of which need to be calculated and reported separately: 1. 2. 3. 4. 5. Basic excise duty (BED) Special excise duty (SED) Additional excise duty (AED) National contingent calamity duty (NCCD) Cess

The system of excise duties is complex, and differs from the generic functions for taxes on sales and purchases in a number of ways: The rate of duty on a single material can vary according to which chapter ID it is listed under. You cannot offset all excise duty on inputs against outputs. Depots cannot offset any input duties at all. Manufacturing plants can only offset input duties if they can show that the input materials are used to produce output materials. You have to record all excise duty (inputs and outputs) in excise registers. Your company may only be entitled to offset a portion of the duty on inputs against duty on outputs. Companies that qualify as small-scale industries can levy excise duty on outputs at reduced rates, so if you purchase materials from these companies, you must calculate a different rate of excise duty.
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Sales Tax
This is a tax levied on the sale of a product. It is applied on the gross price of goods, inclusive of excise duty.

There are two types of sales tax. 1) Interstate sales (for example, between Karnataka and Tamil Nadu) are subject to central sales tax (CST). The tax rate is the same throughout the country. Intrastate sales, 2) On the other hand, are subject to local sales tax (LST), which differ from state to state. SAP R/3 handles these using tax jurisdiction codes.
A percentage of input LST can be deducted against output LST, depending on what percentage of goods you have purchased in the state in question. The system calculates the sales taxes automatically, when you enter the tax codes. A report is also available that tells you how much sales tax you have paid and collected.

India SAP CoE, Slide 10

SD CIN (Country Version India)


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CIN Customizing
Agenda

Global Settings Accounting

Sales and Distribution Reports

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CIN Customizing
Agenda

Global Settings

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Maintain Company Code

Menu IMG Logistic - General Tax on Goods Movements India Basic Path Settings Maintain Company Code Settings
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Maintain Excise Registrations

An entity in India that is entitled by law to produce any goods liable to excise is assigned its own excise registration number. The excise registration reports to the excise authorities.

Menu IMG Logistic - General Tax on Goods Movements India Basic Path Settings Maintain Excise Registrations
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Maintain Plant

Menu IMG Logistic - General Tax on Goods Movements India Basic Path Settings Maintain Plant Settings
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Maintain Excise Groups

An unit within an excise registration in India, which keeps its own set of excise records. The excise group is purely an internal organizational unit. Each excise group keeps records of all the 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.

Menu IMG Logistic - General Tax on Goods Movements India Basic Path Settings Maintain Excise Groups
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Maintain Series Groups

Series groups help in maintaining multiple number ranges for the outgoing excise documents. Based on excise regulations and exemptions from the excise authorities, multiple number series can be maintained for the outgoing documents, but each of these series have to be declared to the excise authorities.

Menu IMG Logistic - General Tax on Goods Movements India Basic Path Settings Maintain Series Groups
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Maintain Excise defaults

In this customizing settings, we define which tax procedure and pricing condition types are used in calculating excise taxes

Menu IMG Logistic - General Tax on Goods Movements India Basic Path Settings Determination of Excise Duty Maintain Excise Defaults
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Tax Indicator Maintenance

Menu IMG Logistic - General Tax on Goods Movements India Basic Path Settings Maintain Excise Duty Indicators
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CIN Customizing
Agenda

Accounting

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Define G/L Account for Taxes

Menu IMG Logistic - General Tax on Goods Movements India Path Account Determination Define G/L Accounts for Taxes
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Maintain Transaction Accounts

In this settings, we define which excise accounts (for excise duty and CENVAT) are to be posted for the various transaction types

Menu IMG Logistic - General Tax on Goods Movements India Path Account Determination Specify Excise Accounts per Excise Transaction
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Assign G/L Accounts

In this IMG activity, we assign the excise and CENVAT accounts to G/L accounts. This is maintained for a combination of Excise Group, Company Code and Chart of Accounts

Menu IMG Logistic - General Tax on Goods Movements India Path Account Determination Specify G/L Accounts per Excise Transaction
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Maintain Minimum Balances

In customization over here, we maintain minimum balances in company excise accounts. When the balances in these accounts, during utilization falls below the level, the system automatically utilizes funds in the PLA account.

Menu IMG Logistic - General Tax on Goods Movements India Path Business Transactions Utilization Maintain Minimum Balances for Excise Accounts
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CIN Customizing
Agenda

Sales and Distribution

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Assign Excise Invoice ..

Invoices are created by referring to either Proforma Excise Invoices or Customer Invoices. Hence in this IMG activity, you specify which Billing document types you use as a reference for CENVAT utilization, and assign them to the appropriate Delivery Types.

Menu IMG Logistic - General Tax on Goods Movements India Path Business Transactions Outgoing Excise Invoices Assign Billing Types to Delivery Types
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Utilization Determination

In this IMG activity, We specify which CENVAT accounts are to be debited by the Fortnight Utilization of CENVAT. Here it is specified as to which CENVAT account the duty must be debited to by default.

Menu IMG Logistic - General Tax on Goods Movements India Path Business Transactions Utilization Utilization Determination
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Maintain Default

We can specify which excise group and series group, we want to appear by default for different combinations of Sales Organization, Distribution Channel, Division and Shipping Point. This activity is optional unless we require the system to automatically create excise invoices when we create a customer invoice.

Menu IMG Logistic - General Tax on Goods Movements India Path Business Transactions Outgoing Excise Invoices Maintain Default Excise Groups and Series Groups
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Tax Determination Long Texts

This customization controls the different types of long texts that caompany want to be able to maintain in various excise transactions.

Menu IMG Logistic - General Tax on Goods Movements India Tools Path Long Texts
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Number Ranges

Maintenance of number range for all CIN objects

Menu IMG Logistic - General Tax on Goods Movements India Tools Path Number Ranges
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CIN Customizing
Agenda

Reports

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Maintain SAP Script Layout

In this IMG activity, for each company code, we can specify which SAP Script forms the system prints the excise registers with.

Menu IMG Logistic - General Tax on Goods Movements India Path Business Transactions Excise Registers Specify SAPscript Forms
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CIN Master Records


Agenda

Master Records

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Excise Master
1. Maintain Chapter ID
All the 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.

T Code : J1ID
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Excise Master
2. Material Chapter ID combination
If it is a input material then select the tab Raw material. If it is capital item then select Assets. If it is a in-house produced material then select RG1. Select GR X ref to specify 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.

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Excise Master
3. 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.

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Excise Master
4 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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Excise Master
5 Customer Excise details
In this section the Customer excise details are maintained. The Customer number, his excise registration details, ECC no, Excise Range, Excise Division, Excise Commissioner ate, CST no, LST no, Permanent account number, Excise Indicator for Customer, SSI status (if he is a SSI vendor), Type of Customer and CENVAT (This is applicable for SSI vendor only who has participated in the CENVAT scheme). The Customer excise details appropriate excise indicator should be selected from the drop down menu of tab. In the type of Customer you have to select appropriate tab i.e. manufacturer, or First stage dealer, Exporter, etc.

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Excise Master
6 Excise Indicator for Plant

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Excise Master
7 Excise Indicator for Plant and Customer
In this section the combination of excise indicator of plant and excise indictor will determine excise duty applicable

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Excise Master
8 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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CIN Transactions
Agenda

Transactions

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SD CIN - TRANSACTIONS
Creation of Excise Invoice for factory sale
Purpose This transaction is used for creating excise invoice with reference to a billing document. Prerequisites The excise invoice has to be created with reference to a billing document The billing document has to be released to FI The posting date of the billing document Menu Path Transaction J1IIN: SAP India Localization Menu Indirect Taxes -> Sales/Outbound movements -> Excise Invoice -> Outgoing excise create/change/display Transaction Code J1IIN

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SD CIN - TRANSACTIONS
Use transaction J1IIN Create /Change/ Display Excise Invoice

Click on From Billing to create an Excise invoice with reference to a billing document

Enter the billing document number and posting date and press Enter

Billing document number

Posting Date

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SD CIN - TRANSACTIONS
Enter the excise group and series group Save the excise invoice

Excise group

Series Group

T Code J1IIN
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SD CIN - TRANSACTIONS
Excise invoice Cancellation
Purpose
Cancellation of outgoing Excise invoice.

Prerequisites Excise Document number Excise series group Document year

Transaction Code
J1IH

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SD CIN - TRANSACTIONS
Execute J1IH Cancel Excise Invoice

Enter Excise invoice number, Document year and series group

Enter document number, Document year and Excise series group

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SD CIN - TRANSACTIONS
Following screen will appear, click on to enter

Following screen will appear, click on to confirm the G/L accounts to be posted. Click on after checking the G/L accounts and save the document using CTRL + S

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SD CIN - TRANSACTIONS
Depot excise invoice capture
Purpose
Capturing Mother Excise invoice at depot.

Prerequisites
Material Document number Depot Excise group Factory Excise series group Document year Ship from

Transaction Code
J1IG
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SD CIN - TRANSACTIONS
Execute transaction J1IG to capture Mother Excise invoice

Enter Depot Excise group and Material Document number and press Enter

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SD CIN - TRANSACTIONS
Following Screen will appear, Enter Ship From, Factory invoice number and Factory Excise series group, tick on own factory

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SD CIN - TRANSACTIONS
Click on details button to go into item details, check the quantity and excise duty and save the invoice

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SD CIN - TRANSACTIONS
Outgoing Depot excise invoice Purpose Excise invoices for delivery at depot Prerequisites Delivery number Depot Excise group Depot series group Transaction Code J1IJ

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SD CIN - TRANSACTIONS
Execute J1IJ transaction to get following screen

Enter Delivery number, excise group and series group

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SD CIN - TRANSACTIONS
Enter into the details screen as shown below

Click on the invoice button to select the mother invoices for reference

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SD CIN - TRANSACTIONS
Select the mother invoice to be referenced and click on the continue button

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SD CIN - TRANSACTIONS
Check the referenced quantity and excise duty values and go back to the overview screen

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SD CIN - TRANSACTIONS
Save the depot excise invoice

Note down the Depot excise invoice number as displayed

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Process Name: Creation of Excise Letter of under taking for export factory sale

SD CIN - TRANSACTIONS
Creation of Excise Bond (Letter of under taking)

Purpose This transaction is used for creating Letter of undertaking. Prerequisites Letter of undertaking to be given to local excise range and the number for the letter of undertaking to be obtained. Menu Path Transaction J1ILN: SAP India Localization Menu Indirect Taxes -> Master data -> Excise Invoice -> Excise Bond Transaction Code J1IBN01 - Create

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SD CIN - TRANSACTIONS
Use transaction J1IBN Save the Excise Bond using Ctrl + S Note down the Excise bond number
Enter Plant code

Bond type: Letter of undertaking

Number for LOU as provided by excise range Enter Bond Value

Enter type of dispatch

Enter Execution date Enter Surety as: No

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SD CIN - TRANSACTIONS
Creation ARE document for export sales under Letter of under taking Purpose This transaction is used for creating ARE1 document with reference to an Excise invoice document Prerequisites The ARE1 document to be generated with reference to excise invoice. Excise invoice has to be generated for sales under letter of undertaking. Menu Path Transaction J1ILN: SAP India Localization Menu Indirect Taxes -> Sales/Outbound Movements -> Exports Under Excise Regulations -> Exports -> J1IA101 Create/Change/Post/Update/Cancel/Display/Reverse ARE-1

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SD CIN - TRANSACTIONS
Use transaction J1IA101 Enter Dispatch date and time.

Enter Date of dispatch

Enter time of removal

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SD CIN - TRANSACTIONS
Enter Internal Bond number Post the document by clicking on Note down the ARE1 document number

Enter internal Bond number

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SD CIN - TRANSACTIONS
Updation of ARE1 document
Purpose This transaction is used for updating and closing ARE1 document. Prerequisites The ARE1 document to be posted in the system.

Menu Path Transaction J1ILN: SAP India Localization Menu Indirect Taxes -> Sales/Outbound Movements -> Exports Under Excise Regulations -> Exports -> J1IA101 Create/Change/Post/Update/Cancel/Display/Reverse ARE-1 Transaction Code J1IA101 - Create/Change/Post/Update/Cancel/Display/Reverse ARE-1

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SD CIN - TRANSACTIONS
Use transaction J1IA101 Enter Arrived at customs date, Sent to Excise dept, Countersigned by customs date, Export Confirmed date. Save the document using Ctrl + S to update the ARE1 document.

Update the relevant data as shown

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CIN Registers
Agenda

Register Entry/Update

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EXCISE REGISTERS - Update


Excise Registers maintained are: RG1 RG23A RG23C PLA RG23D Purpose Updating Registers for issues and receipts Goods Prerequisites Company code Plant Excise group Posting date Receipt/Issue Excise classification codes Register type to be updated Transaction Code J1I5

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EXCISE REGISTERS - Update


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.

Now the stock in production location is moved in RG1 by transfer posting (movement type 311)
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EXCISE REGISTERS - Update


Enter Company code, Plant, Excise group, Posting date, Excise classification for the receipt or issue.

Enter Company code, Plant, Excise group

Enter Posting date for Material document

Select Document Posting date Button

Enter Classification

Select Register

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EXCISE REGISTERS - Update


A list of material documents relevant for Register updation are short listed as shown below. Select the relevant Material document and click on to simulate. Click on to update the material document to Register. Will appear at the bottom of the screen.

Select the relevant entry to be updated

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EXCISE REGISTERS - Extraction


Purpose

Extracting entries updated to Register for issues and receipts of excisable goods.

Prerequisites Excise group Start date End date Register Type Receipt/Issue Excise classification codes

Transaction Code J2I5

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EXCISE REGISTERS - Extraction


Following screen will appear on executing transaction J2I5. Enter Excise group, Start date, End date, and radio button for Register type. Press F8 for extracting Register.

Following screen will be displayed on successful extraction of Register.

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EXCISE REGISTERS - Extraction


Following screen will be displayed on successful extraction of Register.

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SD CIN (Country version India)


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LetMe
Create of Master Data for Tax calculation
J1ID FV11 VK11 J1IBN01 FTXP VK11 Excise rate maintenance Maintain Tax Condition Records Maintain Condition Record Create Excise Bond Tax Code maintenance Tax condition record maintenance

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LetMe
Transactions
J1IEX Capture Incoming Excise Invoice

J1IIN
J1IJ J1IS J1IP

Capture outgoing Excise invoice for Sales order


Capture outgoing Excise invoice for Depot Sales Capture outgoing Excise invoice for Other goods movement Print Excise Invoice

J2IU
J1IA101 J1IA102 J1IA301

Post Fortnightly Payment


Create / Change ARE1 for central processing Create / Change ARE1 for Individual processing Create / Change ARE3 for central processing

J1IA302
J1I2 J1I5

Create / Change ARE3 for Individual processing


Sales Tax Register Update Excise Register

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SD CIN (Country version India)


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HelpMe
CIN TABLES
All CIN Tables start with J_1I and J_2I. There are 129 tables. A few of them are:
J_1IEXCHDR J_1IEXCDTL J_1ICHPTER J_1IEXGRPS J_2IEXTRCT J_2IUTZDAT (Header data of Excise Documents) (Line item data of Excise Documents) (Chapter ID master) (Excise Groups) (Data extract tables for Excise Registers) (Utilization Date)

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HelpMe
Additional Info
How to add new statutory printing documents for taxation
Smart forms need to be created for all the statutory forms exactly as per legal requirements

Need to assign all the forms to required documents types by using output determination.

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