56346625-SAP-CIN

CARITOR INDIA – BAP VERTICAL

SAP - CIN PROCEDURE FOR

EXCISE MASTERS

TRANSACTION

REPORTS...

Presented By ForArunachalam Palaniappan Perfetti Van MalleSAP – CIN Consultant Republic of SingaporeCaritor India 18/052004

1) MASTER MAINTENANACE. .............................................................................................................................. 3 2) MODVAT receipt process. (RG23 Part I and RG23 Part II) ............................................................................... 5 3) Verify and Post in RG 23 part I and part II ............................................................................................................ 6 4) Create Excise Invoice for RG 23 part 1 posting for STO receipts (IFTs). ............................................................ 6 5) Verify and Post in RG 23 part I and part II ............................................................................................................ 6 6) Create Excise Invoice for RG 23 part 1 posting for Subcontracting (converted) receipts. .................................. 7 7) Verify and Post in RG 23 part 1 ............................................................................................................................ 7 8) MODVAT reversal, for Rejections and as such removals( material transfers and sales.) .................................... 8 9) Transaction code for MODVAT quantity reversal:- J1IS ...................................................................................... 8 10) For releasing to Accounts - transaction code is J1IV ........................................................................................... 9 11) For printing excise Invoice - transaction code is Z Transaction ......................................................................... 9 12) Subcontracting Process ......................................................................................................................................... 9 13) Finished Goods removal: Transaction Code : J1II ............................................................................................. 11 14) Cancel excise invoice (generated through J1II). ................................................................................................ 12 15) Finished Goods Receipt in S&F ......................................................................................................................... 12 16) Help for internally generated documents : Transaction Code : J1I7 .................................................................. 13 17) For finding the pending GRs for which J1IA is not done : ............................................................................... 13 18) Excise registers creation ( RG1 & RG 23) :- Transaction Code: J1I5 ............................................................... 13 19) Extracting the Registers: Transaction Code :- J2I5 ........................................................................................... 14 20) Printing the Registers: Through - EXCITE [ Excise & Taxation for Enterprises ] ........................................... 14 21) Fortnightly Utilization: Transaction Code:- J2IU .............................................................................................. 14 22) Excise JV: Transaction Code:- J1IH ................................................................................................................. 15 23) PRECAUTIONS TO BE TAKEN WHILE DOING TRANSACTIONS FOR GETTING CORRECT EXCISE REPORTS. ............................................................................................................................................................... 16

SAP – CIN Procedure Manual Private & Confidential

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PROCEDURE FOR EXCISE MASTERS, TRANSACTIONS & REPORTS

1) MASTER MAINTENANACE.

Transaction Code : J1ID

1. Chapter id – Description Master: - Excise chapter id and description as per law will be maintained in this master. With out maintaining the chapter id in this master we can not proceed to other masters. Maintain the chapter id in format xxxx.xx

2. Material / Chapter id combination :- Excisable materials with chapter id details for a plant is maintained in this master. In case of Raw and Packaging materials we will be maintaining for branch plant only. But in case of FG even CPs details will be maintained. If the material is a base material used for subcontracting then give a ‘tick’ in the check box in the coloumn subcontr’s. Choose relevant material type from drop down menu. In the coloumn GR-xref, select Multiple GR for one Excise invoice-Multiple credit from the drop down menu. Enter ‘1’ in the declared coloumn. With out this value in this coloumn the material will not be subjected to excise procedures.

3. Material assessable Value:- In this master, plant wise (including CP plants) assessable values for FG are to be maintained. MRP per CBB and per ATC will be enetred in Net dealer price coloumn. Assessable value per CBB and per ATC will be given in Assessable value coloumn with effective date in the valid from coloumn. Since it is not possible to maintain differential MRP for the same SKU in this master, the MRP and Assessable value details for despatches from branch plant will be maintained in SD module. In this case we should not maintain the details in this master for branch SKUs and details will be maintained only for CPs.

4. CENVAT determination :- Plant wise MODVAT input materials will be listed in this master with one of the FG as the out put material. This master will be maintained for branch plants only. If the input material is not maintained in this master MODVAT credit can not be availed.

5. Vendor Excise details:- Vendor Excise details such as ECC no, reg no, Exc.range, Exc.div, Exc.coll, CST,LST nos, PAN no will be maintained for all Excisable materials vendors. In the coloumn Exc.ind.ve enter ‘1’. With out this value in this coloumn the MODVAT procedure will not take place. We are not maintaining SSI status in this master.


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6. Customer Excise details:- For such of those customers for whom invoices are to be raised from branch plant details are to be maintained in this master. The excise details can be blank for customers bur CST and LST no are to be entered. In the coloumn Exc.Ind.Cus. enetr ‘1’. With out this value in this coloumn, Excise invoice will not be genrated for the customer.

7. SSI rate :- We will not be maintaining this master. At the time of capturing the MODVAT details we can enter actual duty details as per the Excise invoice received from the Vendor.

8. Excise indicator for Plant:- Excise details such as ECC no, Range etc. for the branch plant will be maintained here. In the coloumn Exc.ind.co maintain a value’1’

9. Excise indicator for plant and vendor and Excise indicator for plant and customer:- Initial Configuration masters need not be maintained by users.

10. Excise tax rate:- Chapter id and tax rates combination is mantained in this master. In the ExcInd coloumn enter’1’.

11. Cess rate:- Cess rate if applicable will be maintined in this master.

12. Exceptional material excise rates:- If differential excise rates are applicable for a material falling under same chapter id , this master will be maintained.

13. Quantity based AED & SED:- If applicable the details will be maintained here.

1.1) Some of the check points pertaining to Masters.

• For raw materials, the assessable value will be picked up from PO.• For FG, the assessable values only for CPs are to be maintained in this master.• Excise indicator in Vendor / Customer excise details is mandatory.• Chapter ID , material Chapter ID and Excise tax rates - should contain all the relevant tax

details.• CENVAT determination correlates the raw material to finished goods. All new materials

are to be added without fail.


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• Material Chapter ID - for conversion activity (only base matl.) sub-contracting indicator has to be checked.

• Material Chapter ID- excise indicator is to be ‘ticked’.• For removals from branch plant (raw material/finished goods), CST/LST numbers have to

be given in the customer masters, which is used in Excise invoice printing

2) MODVAT receipt process. (RG23 Part I and RG23 Part II)

Pre requisites.:- • All relevant details are maintained in the masters. • PO is raised with Tax Code ‘V1- Modvatable”• At the time Goods Receipt through MB01 - excise box has to be ‘ticked’ after checking the

defaulted entries. Take care, to enter, from drop down menu the type of register. (RG 23 A in case of raw , packaging and consumables and RG23 C in case of Assets.). Also check the excise group/series group and select appropriate code from the drop down menu. Do not ‘tick’ for non modvatable materials while raising GR.

• Plant & Storage location to be given in the initial screen of MB01, otherwise the excise box will not appear.

• Once GR is saved the part 1 table will be posted with vendor , GR and material details.• Note down the GR no for further posting.

2.1) Create Excise Invoice for RG 23 part 1 posting for direct purchases.

Transaction Code:- J1IA

• In the intial screen select ‘create’ and <enter>. In the the second screen enter the Material Document (GR no.), Excise group, Vendor excise invoice no., type of material (blank in case of raw, packaging and consumables , ‘A’ in case of Assets) and business area are to be entered in the first screen. Division , range and ECC no will get defaulted if maintained in the vendor excise details master. Other wise these fields can be entered. Go to ‘details’ and click the mouse. Details screen will appear. Verify the excise duty picked up and correct it as per vendor’s excise invoice if needed. Press ‘Propose values’ whenever corrections are made. Select all the lines and save. Note down the internally generated invoice number. (Note that Part 1 is not posted as yet)

• If the PO is on the name of an agent and actual receipt is from a manufacturer, to capture the manufacturer’s name, click additional data on the J1IA screen, after filling the details. Additional data screen will appear. In the ‘data 1’ field enter type of


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supplier i.e Manufacturer. In the ‘data 4’ field enter the name of actual supplier. These details will get printed in excise reports.

3) Verify and Post in RG 23 part I and part II

Transaction Code:- J1IB

• Give the Part 1 Number and the document year and press enter (Message - ‘Posted Part 1’ will be displayed). Go to ‘details’ and <enter>. select all lines and click ‘Post Excise’. FI document is created and part 2 number is generated and displayed.

• Through J1I7 transaction check whether both part 1 and part 2 have been posted.

4) Create Excise Invoice for RG 23 part 1 posting for STO receipts (IFTs).

Transaction Code:- J1IA , Option : With out PO

• In the intial screen select ‘with out PO’ and <enter>. In the the second screen select ‘create’. In the next screen enter the Material Document (GR no.), Excise group, company code, plant, Vendor no (CP No), Vendor’s excise invoice no. & date, type of material (blank in case of raw, packaging and consumables , ‘A’ in case of Assets) and business area are to be entered in the first screen. Division , range and ECC no will get defaulted if maintained in the vendor excise details master. Other wise these fields can be entered. Go to ‘details’ and click the mouse. Details screen will appear. Enter assessable and excise duty details for the line items as per the information available in vendor’s excise invoice and press enter. Total BED amount will appear on the screen. Select all the lines and save. Note down the internally generated invoice number. (Note that Part 1 is not posted as yet)

5) Verify and Post in RG 23 part I and part II

Transaction Code:- J1IB , Option : With out PO


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• Click with out PO on the intial screen.In the next screen give the Part 1 Number and the document year and press enter (Message - ‘Posted Part 1’ will be displayed). Go to ‘details’ and enter. select all lines and click ‘Post Excise’. FI document is created and part 2 number is generated and displayed.

• Through J1I7 transaction check whether both part 1 and part 2 have been posted.

6) Create Excise Invoice for RG 23 part 1 posting for Subcontracting (converted) receipts.

Transaction Code:- J1IA , Option : With out PO

• In the intial screen select ‘with out PO’ and <enter>. In the the second screen select ‘create’. In the next screen enter the Material Document (GR no.), Excise group, company code, plant, Vendor no (CP No), Vendor’s excise invoice no. & date, type of material (blank in case of raw, packaging and consumables , ‘A’ in case of Assets) and business area are to be entered in the first screen. Division , range and ECC no will get defaulted if maintained in the vendor excise details master. Other wise these fields can be entered. Go to ‘details’ and click the mouse. Details screen will appear. Enter assessable and excise duty details for the line items as per the information available in vendor’s excise invoice and press enter. Total BED amount will appear on the screen. Select all the lines and save. Note down the internally generated invoice number. (Note that Part 1 is not posted as yet)

7) Verify and Post in RG 23 part 1

Transaction Code:- J1IB , Option : With out PO

• Click with out PO on the intial screen .In the next screen give the Part 1 Number and the document year and press enter (Message - ‘Posted Part 1’ will be displayed). Now the part 1 is posted with quantity. Document need not be saved as no MODVAT credit is needed for these materials.


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7.1) Create Excise Invoice for RG 23 part 1 posting for receipts against imported POs.

• MRHR for CVD component (with out PO ref. On the MRHR first screen)• Note: Quantity and value are to be entered in the delivery cost POP-UP ( This is a SAP

standard functionality)• J1IA with reference to PO and CVD indicator ‘ticked’. The system will pick up the

quantity, base value, CVD percentage and amount.• GRN with reference to imported PO and CVD challan.• J1IB with reference to J1IA number

8) MODVAT reversal, for Rejections and as such removals( material transfers and sales.)

• Through transaction code ZQA11 materials can be rejected during inspection, the same is to be returned to vendor. The quantity rejected and the UD document are available in the ZREJ table. Note down the UD document number.

• Through transaction code VL02 , PGI will be carried out for a material either for transfer or for sale. During this transaction PGI document number is created. This number is available through the document flow tab. It is also available in list of material documents (MB51). Note down this number.

9) Transaction code for MODVAT quantity reversal:- J1IS

In the initial screen select ‘create Excise invoice’ and <Enter>.• Give the document type - MATD, material document number, applicable series and excise

group (select from drop down),vendor or customer & business area and <Enter>. In case of transfer of Materials sub-transaction type - 01 is to be given.

• In the next screen, if the transaction is for rejections, the assessable value and duty details will be defaulted from the PO. Select the line for the quantity rejected and save. Make sure that all the details are correct before saving.


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• In case of Sale or transfer enter the assessable value with reference to the corresponding GR/Part 1/PO document through J1I7.

• Select the lines and Save the document. Note down the document number generated

10) For releasing to Accounts - transaction code is J1IV• Give the document number generated during J1IS transaction and press ‘release to

accounting’• Next screen will be displayed. • Save the document.• Excise invoice and FI document number will get generated.

11) For printing excise Invoice - transaction code is Z Transaction

• In the intial screen give the J1IS number and execute.• Select the Printer and print the document.

12) Subcontracting Process

Base Material will be transferred to subcontractor either with or with out reference to a subcontracting Purchase order through transaction code MB1B ( Mvt type- 541). Please ensure that only one material is sent in one MB1B document. Do not send more than one material in one MB1B document. Note down this document number.

12.1) Creating subcontracting challan :- Transaction code : J1IF01

• In the initial screen, enter document number generated during MB1B transaction, doc year, Excise group, series group and business area and <enter>

• In the next screen verify the details and save. • Note down the Challan number. • Status of the document is ‘Posted’


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12.2 Subcontracting Challan – Change : Transaction Code :- J1IF11

12.3) Printing of Subcontracting Challan is through IVL menu. - Z014 - 57 F(4) Challan.

Give company code, plant, series group, challan no, Excise group, fiscal year. If correct date and time are known can be given or blank these fields and execute. Select the printer and print the challan

12.4) Subcontracting Challan – Display: Transaction Code :- J1IF12

In the initial screen give challan no and year and enter. The document will be displayed.

12.5) Reconciling the subcontracting challan:- Transaction code : J1IFQ

while doing MB01 transaction, a pop up will appear in which doc year and subcontracting challan number is to be entered. For one converted material , if more than one challan is used , those reference nos can be entered in the same pop up.Please ensure that correct challan no is entered. If wrong nos are referenced, challan reconciliation is not possible. Note down the GR no after saving.

• In the initial screen of J1IFQ, enter the GR number and click ‘reconcile’ • In the next screen, quantities will get defaulted from refernce subcontracting challan and

GR. Scrap quantities as per component scrap specified for the base material in the material master also will get defaulted. Press the tab ‘Allocate based on FIFO’

• The base material quantity of the GR will get assigned to the Subcontracting challan quantity.

• Save the document.• Status of the document will be ‘Assigned’ • This reconciliation transaction has to be done ,with out fail, for each receipt of

converted material immediately after MB01 transaction.12.6) Receipt of Base Materials from Subcontractor :

Base materials are received back from vendor through MB1B transaction ( Mvt type – 542 ). It is not possible to give reference no of Challan while doing MB1B transaction. In this case the reference of challan is given at J1IFQ transaction while reconciling the challan.


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12.7) Subcontracting Challan listing: Transaction code: J1IFR

Through this transaction, query and printing is possible for following options

• Reversal due• Recredit due• Challans captured• Annexure IV• Challans of deleated matl.doc.

If reconciliation is done immediately after each receipt of converted or base material, the base stock position at vendor, with respect to a challan, can be viewed and this facilitates referencing correct challan no while doing MB01.

12.8) Subcontracting Challan – Complete/Reverse/Recredit: Transaction Code : J1IF13

Through this transaction, reversal or recredit will be done for wastage or materials with the converters more than 180 days.In the initial screen, enter the challan number and year of the document and <enter>

• Select the check box ‘Reverse challan’ or ‘Take recredit for receipts’• Press ‘utilisation’ tab and verify the entries. If required change the entry to desired

register• Save the document.

13) Finished Goods removal: Transaction Code : J1II


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During Finished Goods despatch process through transaction code VF01, billing document (STO Excise Invoice) is generated. Note down this document number.

In the initial screen of J1II, select ‘Create’ and <enter>In the next screen, give the billing document no ( STO Excise Invoice ) and posting date and

<enter>. DO NOT refer to STO invoice number at any cost. Excise Details from the corresponding billing document ( STO Excise Invoice ) will get

defaulted. • Check the values and save the document. Please DO NOT save the document with

‘Zero’ or wrong excise duties. If saved with wrong values , RG1 and RT12 reports will go wrong.

• Note down the document number.• In case of removals for Exports, click the ‘utilisation’ button and select ‘deemed’ in the

next screen bofore saving the document. In this case alone ‘0’ duty will be proposed. With out doing this procedure it is not possible to get correct RG1 and RT 12 reports for Exports.

14) Cancel excise invoice (generated through J1II).

• Select ‘cancel’ option in excise invoice.• Enter document no (Excise invoice no generated during J1II),Doc year and series group

and <enter>• Press ‘YES’ if you really want to cancel the invoice and reverse modvat utilised.• Check the entries and press ‘determine GL account’• Enter business area in both lines and cost center in the secong line and press ‘ tick’. • Come to the detailed screen and save.• Part 2 serial no and accounting document no will be displayed

15) Finished Goods Receipt in S&F

• Finished Goods transfer from packing floor stock to S&F will be with Transaction code MB1B and MVT TYPE 911 against reservation created. DO NOT transfer FG to S&F with any other movement type other than 911. If transferred, such stocks will not be updated in RG1. Also please make sure that all entries are correct interms material codes and quantity before doing transfer posting to S&F. It is not possible to reverse any wrong postings, as the entries would have updated RG1.


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16) Help for internally generated documents : Transaction Code : J1I7

• For a particular Excise group and transaction type, all the documents generated through various transactions can be viewed by entering suitable values in the selection fields.

Some transaction types commonly used by us. • 57FC - 57F4 SUBCONTRACTING GOODS ISSUE• CEIV - CANCELLATION OF GENERATED EXCISE INVOICE• GRPO - GOODS RECEIPT• EWPO - EXCISE INVOICE WITHOUT PO• OTHR - EXCISE INVOICE FOR OTHER MOVEMENTS• DLFC - FACTORY SALE AND STOCK TRANSFER

17) For finding the pending GRs for which J1IA is not done :

Transaction code : ZJ1V

Give the excise group in the initial screen and execute the report. Pending GRs for which J1IA has not been will be listed in the next screen.

18) Excise registers creation ( RG1 & RG 23) :- Transaction Code: J1I5

• In the Register update for RG 23 issues and RG 1 screen click Go to > variants > Get >. A small pop up ‘find variant’ will appear. Execute and select variant for required register update. Relevant variants are already created with corresponding movement types and storage locations.

• Enter the posting date and execute.• In the next screen the detailed line items for the selected period will appear.• Select the line items by clicking ‘select all’ tab or individually in the check box.• Click the ‘simulate’ tab.• Click the ‘Register entry’ tab.


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• Look for the message saying __records updated.• While updating RG1 for FG issues , please make sure not to select the cancelled invoices

with movement types 602 and 642 and corresponding 601 and 641 entries.

19) Extracting the Registers: Transaction Code :- J2I5

Extracting RG23 A part I, RG23 C A part II, RG23 C part I, RG23 C part II, PLA.

• Enter Excise group , start date , end date & select register and execute.• Press ’Yes’; in the confirm box.• If data has been extracted it will be shown as ‘Tick’ against the register selected if not ‘X’ will appear. It is

mandatory to extract each register before printing of the reports.

20) Printing the Registers: Through - EXCITE [ Excise & Taxation for Enterprises ]

Following registers and reports can be printed.

Z014 - 57 F(4) Challan.Z027 - Ann.IV-Stock reg.Goods sent for Subcontracting.Z002 - PLA Register.Z004 - RG1 Register.Z005 - RG23A Part I.Z006 - RG23A Part II.Z009 - RG23C Part I.Z010 - RG23C Part II.Z068 - RT 12 Return.Z015 - Cenvat Register.• Select the register to be printed .• In the next screen enter Excise group, start date, end date , material and execute.• Select the printer and press ‘print preview’ or ’ print’ to view on the screen or to get a hard copy.

21) Fortnightly Utilization: Transaction Code:- J2IU


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• In the initial screen enter company code, plant, Excise group.• Also enter the period range or invoices range.• Select the box ‘simulate’ and execute.• In the next screen, details of available balances in the registers, as per GL, Amount payable

etc. will be shown. If tab ‘Excise invoices’ is pressed the details of the invoices are shown with total duty to be payable.

• Come out of this screen, uncheck the ‘simulate’ box and execute.• Enter the amount to be utilises against the register under the head ‘balance utilisation’ and

save.• Part 2 serial no and accounting document no will be displayed.

22) Excise JV: Transaction Code:- J1IH

Following options are available through this transaction.

22.1) Posting in to RG 23 for Material write off:

• Enter document number (the inventory transaction document no.), Doc year, company code , plant and excise group and <enter>.

• Verify the entries and press ‘determine GL accounts’• Check the entries and save.• Part 2 serial no and accounting document no will be displayed.

22.2) Posting RG23 for material issue for non production. ( Material issues to canteen , R&D etc.)

• Enter document number (the inventory transaction document no.), Doc year, company code , plant and excise group and <enter>.

• Verify the entries and correct the excise duty amount if required & press ‘determine GL accounts’

• Give business area in both the lines and enter.• Save the document.• Part 2 serial no and accounting document no will be displayed.

22.3) Posting Additional Excise.

• Enter document number, Doc year, company code , plant and excise group and <enter>.• Enter the amount in appropriate field against BED, AED, SED.and press ‘determine GL

accounts’


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• Check the entries and save.• Part 2 serial no and accounting document no will be displayed.

22.4) Posting other adjustments.

• Enter document number, Doc year, company code , plant and excise group and <enter>.• Enter the amount in appropriate field against BED, AED, SED.and press ‘determine GL

accounts’• Check the entris and save.• Part 2 serial no and accounting document no will be displayed.

22.5) Posting TR6 Challan.

• Enter document number( FI document no of payment), Doc year, company code , plant and excise group and <enter>.

• Check the entries and save.• Part 2 serial no and accounting document no will be displayed.

22.6) Cancel excise invoice

• Enter document no (Excise invoice no generated during J1II),Doc year and series group and <enter>

• Press ‘YES’ if you really want to cancel the invoice and reverse modvat utilised.• Check the entries and press ‘determine GL account’• Enter business area in both lines and cost center in the second line and press ‘ tick’. • Come to the detailed screen and save.• Part 2 serial no and accounting document no will be displayed

23) PRECAUTIONS TO BE TAKEN WHILE DOING TRANSACTIONS FOR GETTING CORRECT EXCISE REPORTS.

1. <Enter> Excise pop up for MODVAT materials only while doing MB01. Cancel for non modvatable items.

2. Select correct register i.e 23 A for raw, packaging and 23 C for capital goods.


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3. Do J1IA and J1IB immediately after receipt of materials. Other wise negative balances can occur in RG23A part 1 report if this report is taken before doing J1IA.

4. Do not Change posting date in the CIN transactions especially while posting to Accounts.

5. Always send one material in one MB1B document while transferring to Subcontractor. This will facilitate correct reconciliation of Challans.

6. While receiving converted materials, pl refer to correct Subcontracting challan during MB01. If wrong challan is attached , it is not possible to reconcile the challan.

7. Pl reconcile the subcontracting challan immediately after each receipt of converted material. This will facilitate to see the correct stock at vendor through J1I7 transaction.

8. Do not cancell J1II transactions. If cancelled it will have an effect on the RG1 and RT 12 reports.

9. Do J1II only when you are sure of sending the truck .10. Pl check the excise values befor saving J1II. Do not save J1II transaction with '0"

excise values or wrong excise values. 11. Check the excise values before saving STO Excise invoice in VF01. Do the

corrections at this stage itself. If at all the document is to be cancelled pl reverse delivery also.

12. Do not select the lines of cancelled invoices ( mvt.types 601,602,641,642) when updating the registers in J1I5.

13. Always check the values before saving any transaction in CIN . Corrections are not possible after posting is done to accounts. Do not post wrong credits or debits.

14. Correct pricing conditions are to be used while generating PO for taking MODVAT credit both at branch and CPs.

15. Always use only prescribed movement types ( example : 911 for S&F transfers) while doing transactions. Any wrong movements will have effect on the updation of registers in CIN and lead to negative or incorrect balances.

16. Pease ensure all excisable materials are having proper material codes.


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56346625-SAP-CIN

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Transcript of 56346625-SAP-CIN