CIN Excise

8/12/2019 CIN Excise

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3.1 Cenvatable Excise Duties Conditions

(%ge)...................................................................................................................... 3

3.2 Cenvatable Excise Duties Conditions

(Qty)...................................................................................................................... 3

3.3 Non- Cenvatable Excise Duties

Conditions(%ge)............................................................................................................. 3

3.4 Non- Cenvatable Excise Duties

Conditions(Qty).............................................................................................................. 3

3.5 VAT

Conditions.......................................................................................................................................................

............ 3

3.6 CST

Conditions.......................................................................................................................................................

............ 3

3.7 Service Tax Conditions: Non-

Inventoried........................................................................................................................ 3

3.8 Service Tax Conditions:

Inventoried................................................................................................................................. 3

3.9 Tax Conditions to be

Maintained...................................................................................................................................... 3

4 Procedure for Claiming CENVAT for Raw

Materials.............................................................................................. 3

4.1 Create the Purchase

Order................................................................................................................................................ 3

4.2 Goods

Receipt............................................................................................................................................................

.......... 3

4.2.1 Option I: Capture Excise Invoice @ Goods

Receipt............................................................................................... 3

4.2.2 Option II: Capture Excise Invoice

seperately.......................................................................................................... 3

4.3 To check the status of all the excise invoices

captured.................................................................................................. 3


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4.4 Post Excise

Invoice.............................................................................................................................................................

. 3

5 Procedure for Claiming CENVAT for Capital

Goods............................................................................................... 3

6 Procedure for Claiming Duties for Imported

Goods............................................................................................. 3

7 Procedure for Claiming CENVAT for Raw Materials without Material ID....................................................

3

8 Claiming Custom Duties Purchased from Dealer (who has imported the Matrl)......................................

3

9 Procedure for Inventorizing Custom Duties Purchased for a

Depot............................................................. 3

10 Procedure for CENVAT

Reversals................................................................................................................................ 3

10.1 Return Delivery (MvT :

122).............................................................................................................................................. 3

10.2 Cancellation of Material

Documents.............................................................................................................................. 3

10.3 Purchase Order

Returns................................................................................................................................................... 3

10.4 CENVAT Adjustment Postings (J1IHExcise

JV).............................................................................................................. 3

10.4.1 Making Adjustment Postings for

Scrap................................................................................................................. 3

10.4.2 Making Adjustment Postings for Materials Not Used in

Production................................................................. 3

10.4.3 Making Adjustment Postings for Additional Excise Paid to

Vendors................................................................ 3

10.4.4 Making Adjustment Postings for Money Transferred to

PLA............................................................................. 3


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10.4.5 Canceling Excise

Invoices......................................................................................................................................... 3

10.4.6 Making Adjustment Postings for Other

Transactions.......................................................................................... 3

11 Subcontract

Challan..................................................................................................................................................... 3

11.1 Normal Subcontract

Process........................................................................................................................................... 3

11.2 Subcontract Process where Scrap is received from

Vendor......................................................................................... 3

11.3 Subcontract Process: Return Delivery To

Vendor.......................................................................................................... 3

11.4 Subcontract Process: Cancellation of Goods

Receipt................................................................................................... 3

11.5 Subcontracting over consumption or under

consumption.......................................................................................... 3

11.6 Challan completed 180 days reverse and recredit the

challan.................................................................................... 3

12 Frequently Asked

Question........................................................................................................................................... 3

1 THE COUNTRY INDIA VERSION(CIN)

CIN facilitates handling of tax implications during the Purchase and Sales cycles. This country version is

designed for use by businesses with operations in India as well as the generic SAP System functions. It

comprises functions designed for laws and business practices particular to India, and a country template

to help you customize the system according to local requirements. Most of the country-specific

functions for India relate to Financials and Logistics. The main areas are as follows:

Excise duty and the central value-added tax system (CENVAT)

Withholding tax (also known as tax deducted at source)

Sales tax

Maintenance and printing of statutory excise registers

1.1 EXCISE REGISTRATION


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Each entity is assigned its own excise registration number. Every factory that manufactures excisable

goods is required to register separately.

1.2 EXCISE GROUP

This is a unit within an excise registration, in India, which keeps its own set of excise records.

Whereas the excise registration reports to the excise authorities, the excise group is a purely internal

organizational unit. Each excise group keeps records of all transactions that have to be reported to the

excise authorities. When the time comes to present these records to the authorities, the excise

registration compiles the information from all of its excise groups.

Excise Group determines Excise Register number range

All excise Reports (RT-12, PLA, RG23A Part I & II , RG23C Part I & II) will be generated based on this

Excise Group.

1.3 SERIES GROUP

Series Group determines number range for outgoing excise invoice / challan ( e.g. 57AC5 challan etc.)

2 ESSENTIAL MASTER DATA FOR EXCISE

Transaction Code: J1ID

- Excise Master.

- Material Chapter Id Combination.

- Material Assessable Value.

- CENVAT Determination

- Vendor Excise Details.

2.1 ChapterId

Select Chapter Id

Go to New Enteries and Enter Chapter Id and Description.

2.2 Material Chapter ID combination

Select material chapter ID combination box and then press icon.

Select Material & Chapter Id


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

Go to New Enteries and Enter the details

If the material can be sent outside for subcontracting purpose then put a tick in the check box

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 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.

2.3 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 and vendor

returns.

Enter the combination plant, material number, valid from, currency, Assessable value.

Select Material Assessable Value


2.4 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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Select Cenvat Determination


2.5 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).

Select Vendor Excise Details


NOTE : If the Vendor details are not maintained, then at the time of Vendor Excise Invoice Capturing, the

system will ask for the Vendor Excise Details, which needs to be provided in the Miscellaneous Tab of

Excis sub Icon.

3 TAX CONDITION RECORDS

Tax Conditions to be used :

3.1 Cenvatable Excise Duties Conditions (%ge)

Condition Type Description Setoff Condition Type Setoff Condition Desc

JMOP IN: BED setoff % JMX1 IN: A/P BED setoff

JECS IN ECS inventory % JEX1 IN: A/P ECS setoff

JSEC IN S&HECS invory % JHX1 IN: A/P S&HEC setoff

JAOP IN: AED setoff % JAX1 IN: A/P AED setoff

3.2 Cenvatable Excise Duties Conditions (Qty)



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JMOQ IN: BED setoff Qty JMX1 IN: A/P BED setoff

JEOQ iN: ECS setoff Qty JEX1 IN: A/P ECS setoff

JSHO iN S&HECS setoff Qty JHX1 IN: A/P S&HEC setoff

JAOQ N: AED setoff Qty JAX1 IN: A/P AED setoff

3.3 Non- Cenvatable Excise Duties Conditions(%ge)


JMIP IN: BED inventory % JMX2 N: A/P BED inventor

JECO IN A/P ECes setoff % JEX2 IN: A/P ECS inventry

JSEO IN A/P S&H setoff % JHX2 IN: A/P S&HEC invtry

JAIP IN AED inventory % JAX2 IN: A/P AED inventor

3.4 Non- Cenvatable Excise Duties Conditions(Qty)


JMIQ IN: BED inventory Qt JMX2 N: A/P BED inventor

JECQ IN ECS inventory Qty JEX2 IN: A/P ECS inventry

JSHQ IN S&HECS invent Qty JHX2 IN: A/P S&HEC invtry

JAIQ IN AED inventory Qty JAX2 IN: A/P AED inventor

3.5 VAT Conditions

Deductable Condition

Type

Description NonDeductable Condition

Type

Description

JVRD A/P VAT RM JVRN A/P VAT RM Non


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Deductibl Deduc

JVCD A/P VAT CG

Deductibl

JVCN A/P VAT CG Non

Deduc

3.6 CST Conditions

Condition Type Description

JVCS A/P CST Non Deductib

3.7 Service Tax Conditions: Non-Inventoried


JSRT A/P SERVICE TAX

JEC3 A/P ECS for ST

JES3 A/P SECess for ST

3.8 Service Tax Conditions: Inventoried


JSRI A/P SERVICE TAX_INV

JEC4 A/P ECS for ST_INV

JES4 A/P SECS for ST_INV

3.9 Tax Conditions to be Maintained

Transaction Code: FV11

Specify the Condition Type & select Key Combination

As per the Key combination ( Plant/Vendor / Material), maintain the Values & Save


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For E.Duty, the key combination will be as shown below. Select one combination and maintain values

For VAT, the key combination will be as shown below. Select one combination and maintain values

For service Tax, the key combination will be only tax classification

4 Procedure for Claiming CENVAT for Raw Materials

Step Description Inputs T.Code Role

1 Maintain Excise Rate

Maintenance details

Material, chapter Id,

Assessable Value

J1ID Purchaser / Buyer /

Excise Personnel

2 Maintain Tax Conditions Plant / Material / Vendor /

Tax Classification

FV11 Purchaser / Buyer

3 Create Purchase Order Vendor / Material / Qty /

Plant / Price / Tax Code

ME21N Purchaser / Buyer

4 Goods Receipt (Capture Excise

Invoice)

PO No. / Qty / Excise Inv # /

Ex. Invoice Dt

MIGO Stores

5 List of Excise Invoice, where it is

captured but not Posted

Excise Group J1I7 Excise Personnel

6 Change Excise Invoice ( if

Required)

Vendor Ex. Inv / Date J1IEX Excise Personnel

7 Post Excise Invoice Vendor Ex. Inv / Date J1IEX Excise Personnel

8 Updation of Registers Excise Group / Start Dt / End

Dt

J2I5 Excise Personnel

9 Print of Registers Excise Group / Start Dt / End

Dt

ZJ2I6 Excise Personnel

4.1 Create the Purchase Order


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Purchase Order is created, with Tax code @ line itemInvoice Tab. By selecting the Tax code, in the

Purchase Order, the duty amount is calculated in the Tax Procedure, as per the Tax Conditions

maintained.

The main inputs to create Purchase Order would be Vendor / Material / Quantity / Plant / Requestor /

Price / Tax code / Delivery Date.

4.2 Goods Receipt


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4.2.1 Option I: Capture Excise Invoice @ Goods Receipt

The transaction code is MIGO for goods receipt. If the item is cenvatable and all the excise master data

are already updated, the excise tab will come automatically ( after making the item OK).

Enter the PO Number, Vendors Delivery Challan Number. Press Enterat this point of time system will

copy all the relevant information from PO. Enter recieved Quantity in the Quantity Tabquantity in Unit

of Entry Field. Enter receiving storage location in Where Tab. If some text needs to be added regarding

goods receipt for the line item, then enter the text in the Text Field. Once these are entered, Check the

line item as Ok, and Enter, and a Excise Invoice tab will appear in the Header screen. The following

options are available in Excise Tab

(1) Only capture excise invoice : It will capture the excise details & post Part I only

(2) Capture & Post Excise Invoice : This will update Part1 and Part 2.

(2) Only refer excise invoice : It will not capture excise invoice, no part I posting

(3) Only Part 1 : This will update the Part 1 only

(4) No Excise Entry : There will be no excise entry

Select Only Capture Excise Invoice on this tab and check the Excise group.

Check the excise details related to the line item recieved material in Excise Tab in Detail Data Screen as

shown below:

The Goods Receiver can change the following at the time of GR

(1) Chapter ID

(2) Excise invoice quantity

(3) Base Value / Excise Rates / Amount

(4) Description of the material as per Excise Invoice


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Automatically system will recalculate the excise duty based on this excise Base value and excise rate.

Once all the data is captured correctly, check Check button in tool bar.

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.

4.2.2 Option II: Capture Excise Invoice seperately

Transaction code J1IEX_C

Capture the Vendors Excise Invoice

Select Capture Excise Invoice and Purchase Order in windows above the Header if the Excise Invoice is

being captured prior to Goods Receipt.

Select Capture Excise Invoice and Goods Receipt in windows above the Header if the Excise Invoice isbeing captured after Goods Receipt.

Press Enter, following screen will appear

The following can be changed at the time of Capturing

(1) Chapter ID

(2) Excise invoice quantity

(3) Base Value

(4) Excise Rates / Amount.

The Goods Receiver will make one GR for each excise invioce. The Supplier can later on submit a


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separate Commercial invoice for all the supplies & excise Invoices. Invoice verification will be based on

Purchase Order against which several line items will appear based on GR document number.

At the end of the day, the Goods receiver will generate a list of cases where items are cenvatable &

excise invoices are `Captured. This report will show the Internally generated excise serial numbers. The

goods receiver will send this report attaching all the cenvat documents received during the day.

4.3 To check the status of all the excise invoices captured

Transaction code J1I7

Selection criteria can be mainly Excise Group.

You can select further the following

(1) No posting done

(2) Part I & Part II posted

(3) Part 1 posted, part II not posted.

4.4 Post Excise Invoice

At the end of the day, the Excise Personnel will receive a list from Stores attaching all the cenvat

documents during the day. Then based on this list, he will enter transaction code J1IEX / J1IEX_P Select`POST if no change is required.


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Now you can `POST CENVAT

System will post the cenvat amount in RG23 Part II based on material type (inputs / Capital Goods).

However if you want to change the excise details go to the Change mode...

Here you can change the following:

1. Chapter Id

2. Description of material

3. Invoice No.

4. Document date


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5. Ship from ( under miscellaneous tab)

6. Base price

7. Excise duty (both higher side as well as lower side, then that present)

System will show the RG23 Part 1 serial no., GR no. PO number. You can change the excise vendor also.

5 Procedure for Claiming CENVAT for Capital Goods



Maintenance details

Material, chapter Id, Assessable

Value, declae material as Asset /

Consumable

J1ID Purchaser / Buyer

/ Excise Personnel

2 Maintain Tax Conditions Plant / Material / Vendor / Tax

Classification

FV11 Purchaser / Buyer

3 Create Purchase Order Vendor / Material / Qty / Plant /

Price / Tax Code

ME21N Purchaser / Buyer

4 Goods Receipt (Capture

Excise Invoice)

PO No. / Qty / Excise Inv # / Ex.

Invoice Dt

MIGO Stores

5 List of Excise Invoice, whereit is captured but not

Posted



Required)



8 Capital Goods Transfer of

Credit ( post 50% credit)

Company code / Excise Grp / Plant

/


9 Updation of Registers Excise Group / Start Dt / End Dt J2I5 Excise Personnel

10 Print of Registers Excise Group / Start Dt / End Dt ZJ2I6RG23C Excise Personnel


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Businesses are allowed to set off excise duty on purchases of capital goods against excise duty on

outputs. However, unlike with raw materials, you can only set off half of the duty in the first year, and

the rest in any year after that.

Prerequisites : In the material master (J1ID) , you have classified the capital goods as such.

Features : When you post an excise invoice that contains capital goods, the system posts half of the

excise duty to your CENVAT account and posts the rest to a G/L account for CENVAT on hold. In

following years, you can use a report to identify the capital goods with excise duty on hold and transfer

the duty to the CENVAT account (see Transfer of CENVAT Credit on Capital Goods).

Steps: When working with excise invoices that include capital goods, note the following:

Capturing vendor excise invoices

When you create an excise invoice with capital goods, you have to set the material type to A (assets), C

(consumables), or T (tools).

Posting excise invoices

When you come to post the excise invoice, the system posts only half of the excise duty to the CENVAT

account.

Transfer of CENVAT Credit on Capital Goods (Transaction code : J2I8)

* *You use this report to display a list of the vendor excise invoices where the vendor has levied excise

duty but you have not posted it (in full) to your CENVAT account. This is particularly useful in the case ofcapital goods, in order to find out how much credit remains from previous years.

Output

The system displays a list of excise invoices with excise duty outstanding. It shows you:

The total amounts of the various types of excise duties levied on the excise invoice

How much duty has still to be posted to the CENVAT account


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Select the excise invoices that you want and choose Transfer credit. If you want to transfer only a

portion

of the remaining amount, enter this amount as the amount to be credited.

The system creates an accounting document to post the duty to the CENVAT account and creates an

entry in the Part II register.

You can select all or select items and then press `Transfer Credit

6 Procedure for Claiming Duties for Imported Goods


1 Maintain Excise Rate Maintenance

details


Assessable Value

J1ID Purchaser /

Buyer / Excise

Personnel

2 Create Purchase Order Vendor / Material / Qty /

Plant / Price / Zero Tax

Code(VI)

ME21N Purchaser /

Buyer


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3 Ammend Purchase Order with the

Customs Duties conditions (for

domestic custom vendor)

Custom duty Conditions :

JCDB - IN Basic Customs

JCV1 - IN CVD - Foreign

Ven

JECV - IN ECS-

CVD:ForVend

J1CV- IN HECS-CVD:For

Ven

JEDB- IN ECS on Cust Duty

JSDB - IN SH ECS on BCD

JADC - IN Ad Duty Cus:For

V

ME22N Purchaser /

Buyer

4 Post Invoice for Custom Vendor

and Foreign Vendor.

PO / Vendor code :

Planned Delivery Costs

MIRO Accounts

5 Goods Receipt (Capture Excise

Invoice)

PO No. / Qty / Excise Inv #

/ Ex. Invoice Dt

MIGO Stores

6 List of Excise Invoice, where it is

captured but not Posted


7 Change Excise Invoice ( if Required) Vendor Ex. Inv / Date J1IEX Excise Personnel


9 Updation of Registers Excise Group / Start Dt /

End Dt


10 Print of Registers Excise Group / Start Dt /

End Dt

ZJ2I6 /

ZJ2I6RG23C

Excise Personnel

7 Procedure for Claiming CENVAT for Raw Materials without Material ID



Maintenance details the

Chapter Id.

Chapter Id J1ID Purchaser /

Buyer / Excise

Personnel


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2 Maintain Tax Conditions Maintian tax conditions for Plant/Material

Group combination.

FV11 Purchaser /

Buyer

3 Create Purchase Order Vendor / Material / Qty / Plant / Price /

Tax Code

ME21N Purchaser /

Buyer


Excise Invoice)

PO No. / Qty / Excise Inv # / Ex. Invoice Dt.

Also in the line item of Excise Tab, specify

the Chapter Id & Matrl Type.

MIGO Stores

5 List of Excise Invoice,

where it is captured but

not Posted



Required)



8 Updation of Registers Excise Group / Start Dt / End Dt J2I5 Excise Personnel

9 Print of Registers Excise Group / Start Dt / End Dt ZJ2I6 Excise Personnel

8 Claiming Custom Duties Purchased from Dealer (who has imported the Matrl)

Use : The materials are procurred from a domestic vendor who imports the material. This domestic

Vendor passes on the CVD and SAD duties, which have to be captured as BED and AED.



Maintenance details

Material, chapter Id, Assessable

Value

J1ID Purchaser /

Buyer / Excise

Personnel

2 Maintain Tax conditions Maintian tax conditions with BED /

AED conditions as 0%, as this is going

to be replaced by CVD and SAD

FV11 Purchaser /

Buyer / Excise

Personnel


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values from the pricing procedure.

3 Create Purchase Order Vendor / Material / Qty / Plant /

Price / Tax Code

ME21N Purchaser /

Buyer

NOTE Maintain CVD and SAD

values in the pricing

procedurePO Condition

Tab.

POLine Item Condition tab

specify CVD Amt for the condn type

JEXC and SAD for condn type

ZADC.

ME21N Purchaser /

Buyer

3 Post Invoice for Custom

Vendor and Foreign

Vendor.

PO / Vendor code : Planned Delivery

Costs

MIRO Accounts


Excise Invoice)

PO No. / Qty / Excise Inv # / Ex.

Invoice Dt

MIGO Stores

5 List of Excise Invoice,

where it is captured but

not Posted

Excise Group J1I7 Excise

Personnel


Required)

Vendor Ex. Inv / Date J1IEX Excise

Personnel

7 Post Excise Invoice Vendor Ex. Inv / Date J1IEX Excise

Personnel

8 Updation of Registers Excise Group / Start Dt / End Dt J1I5 Excise

Personnel

9 Print of Registers Excise Group / Start Dt / End Dt ZJ2I6 /

ZJ2I6RG23C

Excise

Personnel

9 Procedure for Inventorizing Custom Duties Purchased for a Depot

Use : The materials are procurred for a depot, where, the Custom Duties get inventorized, captured in

transaction J1IG and then the same duties are picked in sales invoice for passing on to Customer.

Process:


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1 Maintain Excise Rate Maintenance

details


Assessable Value

J1ID Purchaser /

Buyer / Excise

Personnel

2 Maintain Zero Tax conditions Maintain Zero Tax conditions FV11 Purchaser /

Buyer / Excise

Personnel

3 Create Purchase Order Vendor / Material / Qty / Plant

/ Price / Zero Tax Code

ME21N Purchaser /

Buyer

NOTE Maintain all the Custom Duties in PO

Line itemcondition tab For

External Vendors and also Inter

Company purchases

The following Condition types

needs to be selected for

inventorizing the Custom

Duties:

JCDB - IN Basic Customs

JCV3- IN CVDInventory

JECI- IN ECS-CVD:Inventory

J1CI- IN HECS-CVD: Inven'y

JEDB- IN ECS on Cust Duty

JSDB- IN SH ECS on BCD

JADI- IN Ad Duty Cus:Inven

ME21N Purchaser /

Buyer

4 Goods Receipt (Do not capture Excise

Invoice)

PO No. / Qty MIGO Stores

5 Capture Excise Invoice for Depot Material Doc # (GR), Excise

Group, Excise Inv # / Dt.

J1IG Excise

Personnel

10 Procedure for CENVAT Reversals

Cenvat reversals due to:

Return delivery.

Cancellation of Material Document.


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Purchase Order Returns.

CENVAT Adjustments.

10.1 Return Delivery (MvT : 122)


1 Goods Receipt (Return Delivery /

Material Document)

GR Material Doc No. / Qty / Reason for

MvT

MIGO Stores

2 Create Excise Invoice Ref Doc Type:MATD / Rej Mat Doc No.

/ Series Grp / Excise Grp

J1IS Excise

Personnel

3 Print Excise Invoice Ex Inv # / Year J1IV Excise

Personnel

On rejection of material ( Return Delivery: using 122 movement type) , the user will use the transaction

J1IS to generate an outgoing Excise Invoice which will reverse the cenvat credit.

Steps involved:

(a) Enter MIGO

(b) Select Return Delivery & Material Document

(c) Enter the Original material document no. (GR No.)

(d) Enter reason for movement

(e) Check & Post. System will generate a document number.

For Excise Invoice creation ( to send back the material)

(a) Transaction Code: J1IS

(b) Reference Doc. Type MATD


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(c) Document No. is the rejected GR No.

(d) Enter Document year, Series Group and Excise Group.

(g) Sub transaction type will be blank. Then press

h) System will display cenvat amount, chapter ID, quantity etc. If everything is OK

(i) Please remember, if the RG23 part II is not posted for this GR, system will not fetch automatically the

Value and excise duty.

(j) Save. System will generate an Excise Invoice Number. Note down this number.

(k) Enter J1IV (Print excise invoice ).

Note : for those material without Material ID, a dummy material ID needs to be created and assigned

during Excise Invoice Creation in J1IS. The Description of the Material can then be changed to the

original material description, that is being sent out.

10.2 Cancellation of Material Documents

Purpose : Assume you have posted a goods receipt and then posted the CENVAT on the excise invoice

accordingly. Then it transpires there is a problem with the goods and the goods receipt has to be

reversed. Under excise laws that means you are no longer entitled to the CENVAT credit.

In the SAP System, therefore, you have to reverse CENVAT posting correspondingly.

Process Flow :


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- Creates a corresponding entry in Part II of the appropriate excise register

3. If your plant does not allow multiple goods receipts per excise invoice, you must also cancel the excise

invoice:

The system changes the excise invoice status to Canceled.

If, however, you do allow multiple goods receipts per excise invoice, you do not have to cancel it.

If you want, you can leave the excise invoice as it stands. Then, if you receive another delivery of goods

for this excise invoice, enter the excise invoice number when you post the goods receipt.

1. Go to Transaction Code - J1IEX.

Select : CANCEL and Vendor Excise Invoice

Enter Vendor Excise Invoice.

4. Save the Excise Invoice.

10.3 Purchase Order Returns

Process Flow :


1 Create Purchase Order with

Returns Indicator.

Doc Type: ZRTN / Vendor / Material /

Qty / Plant / Price / Tax Code

ME21N Purchaser /

Buyer

2 Create Outbound Delivery

w.r.t Purchase Order

Purchase Order #, Select the proper

variant.

VL10B Stores

3 Post goods Issues Do PGI with proper Reason for MvT VL02N Stores

4 Create Excise Invoice Goods Issue Mat Doc # J1IS Excise

Personnel

5 Print Excise Invoice Excise Invoice #, Output Type : JREC J1IV ExcisePersonnel

10.4 CENVAT Adjustment Postings (J1IHExcise JV)

Use: - You use these functions to make an adjustment posting to any of your CENVAT accounts.

10.4.1 Making Adjustment Postings for Scrap


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Use: - You follow this procedure if you have scrapped a material and want to reverse the excise duty

debited to your CENVAT account.

10.4.2 Making Adjustment Postings for Materials Not Used in Production

Use: - You follow this procedure if you have not used a material in the production process and want to

reverse the excise duty debited to your CENVAT account.

Procedure: -

1. J1IH - Excise JV / Create / Matl write-off.

2. Enter data as required, including:

Document number (This Document is of Movement Type551 i.e. GI for Scrap)

CENVAT account selection group box. Specify which account is affected by the adjustment posting is

for. If the posting does not have to be remitted immediately, select Fortnightly payment.

3. Click on Enter button. The system displays the information from the material document.

4. Adjust the posting date as necessary.

5. Adjust the excise duty for each line item either: Manually or By assigning the line item to an excise

invoice

6. Specify which G/L accounts are to be posted to. Here you can change Debit A/c as per your

requirement.

7. Save the adjustment posting. System will post Excise JV Document, Accounting Document Part2 Serial

No.

10.4.3 Making Adjustment Postings for Additional Excise Paid to Vendors

Use: - You follow this procedure if a vendor has increased the amount of excise duty that it originally

charged you and you want to debit the difference to your CENVAT account.

Procedure: -

1. J1IH / Excise JV / Additional excise.

2. Enter data as required. In the Document number field, enter then number of the document sent to

you by the vendor. Click on Enter button.

3. Adjust the posting date as necessary and Enter Vendor Name.

4. Enter the amount of excise duty in either of the following ways:


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To enter line items for different materials and the excise duty accordingly, choose Details button and

enter the line items in the table. Here Enter Material code, quantity as per excise invoice, reference

document (i.e. GRN Document), batch no., BED and Ed Cess Amount to be posted.

To enter the excise duty only, choose Header button and enter the excise duty in the totals fields at

the foot of the screen.

5. If the duty qualifies as countervailing duty (CVD): a. Select CVD applicable. b. Enter the CVD amount in

the BED amount field.

6. Specify which G/L accounts are to be posted to and Save the adjustment posting. System will post

Excise JV Document; Accounting Document with Part 2 Serial No.

10.4.4 Making Adjustment Postings for Money Transferred to PLA

Use: - You follow this procedure to make an adjustment posting when you transfer money to your

personal ledger account (PLA).

Prerequisites: - You have already transferred the money to your PLA at the bank, using a TR6 challan,

and have posted the corresponding accounting document.

Procedure: -

1. J1IH / Excise JV / TR6 challan.

2. Enter data as required, including the document number. You can enter either the challan number OR

the number of the accounting document (This document is to be first created through T. CodeFB50. In

this Document Debit PLA on Hold A/c and Credit Bank A/c with the Amount to be transferred in PLA

CENVAT Accounts)

3. Click on Enter button. If you entered the accounting document number, the system displays the

information from it.

4. Enter the amounts against the accounts that you require.

5. Save the adjustment posting.

6. System will post Excise JV Document; Accounting Document with Part2 Serial No.

10.4.5 Canceling Excise Invoices

Use: - You follow this procedure in order to cancel an outgoing excise invoice. It reverses any excise duty

accounted for.

Procedure: -

1. J1IH / Excise JV / Cancel exc. inv.


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2. Enter the number, year, and series group of the excise invoice that you want to cancel. A dialog box

appears.Choose Yes.

3. Before posting the document check the Accounting document going to be generated. Here click on

Determine G/L Accounts button.

4. Save the adjustment posting. System will post Excise JV Document; Accounting Document with Part2

Serial No.

10.4.6 Making Adjustment Postings for Other Transactions

Use: - You follow this procedure if you want to make an adjustment posting that does not fall into any of

the other categories of adjustment offered by this function. You can only use an external document as

your reference document.

Procedure: -

1. J1IH / Excise JV / Other adj.

2. Enter data as required, including: Document number Enter the number of the external document

that you want to refer to. CENVAT account selection group box Specify which account is affected by

the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly

payment.

3. Click on Enter button. The system displays the information from the material document.

4. Adjust the posting date as necessary and enter Vendor code as per requirement.

5. Enter the amount of excise duty in either of the following ways: To enter line items for differentmaterials and the excise duty accordingly, choose Details button and enter the line items in the table.

Here fill details like Material Code, Quantity as per Excise Invoice, Batch No, Reference (i.e. GRN

Document), BED and Ed Cess Amount manually. If you want system to propose the BED and Ed Cess

Amount, Click on Get Excise Invoice button and select the proper Excise Invoice from which the

proportionate amount is to be copied. Select the Excise Invoice and click on Continue button. It will

copy BED and Ed Cess and SECess amount as per the quantity mentioned here. It will be proposed in

proportion of selected Excise Invoice quantity and value. To enter the excise duty only, choose

Header button and enter the excise duty in the totals fields at the foot of the screen.

6. Specify which G/L accounts are to be posted to.

7. Save the adjustment posting. System will post Excise JV Document; Accounting Document with Part2

Serial No.

TIPS to simplify Excise JV transactions: - (J1IH)

1. Assigning Excise Invoices to Line Items


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Use: - When you make an adjustment posting, you follow this procedure if you want to specify the

original excise invoice associated with a line item.

Procedure: -

1. Select the line item that you want and choose Get excise invoice. The system displays a list of all the

excise invoices that you have posted from this vendor for this particular material.

2. Select the excise invoice that you want and click on Enter button. The system: Enters the excise

invoice document number in the Ref. doc. field (Reference document). Calculates how much of the

excise duty from the excise invoice should be apportioned to the line item and enters it in the excise

duty fields. If you then overwrite these amounts, you should also overwrite the reference document

number with an explanatory text, since there is no point in maintaining the link to the reference

document anymore.

2. Specifying Which CENVAT Accounts to Adjust

Use: - When you make an adjustment posting, you have to specify which CENVAT accounts are to be

adjusted.

Procedure: -

1. Choose Determine G/L accounts. A dialog box appears that shows how much will be posted to which

G/L accounts. The accounts that are displayed depend on the excise group and the CENVAT account that

you entered on the selection screen.

2. Add another account, if you need to, and adjust the other postings so that the credits and debits

match.

3. Enter a business area and cost center, if necessary.

4. To close the dialog box, click on Enter button. 3. Displaying CENVAT Account Balances To display the

balances of your CENVAT accounts, choose Balances. The system displays the balances only of the

CENVAT accounts that are affected by your G/L postings.

11 Subcontract Challan

11.1 Normal Subcontract Process


1 Create Subcontract Purchase Order Document type(NB) / Pur.org ./

Pur.group / Co.code / Material / Qty. /

Price / Plant / Requister / Delivery date

/ Vendor no ./ Tax code / Item

ME21N Purchaser

/ Buyer


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catgory(L) / Components

2 Create transfer Posting of

materials sent out for sub-

contracting with reference toSubcontractor PO.

Select the material, and do PGI or

create Delivery.

ME2O Stores

3 Create Subcontracting challan Materail doc / Fiscal year / Excise group

/ Series group

J1IF01 Excise

Personnel

4 Print Subcontract Challan Go to transaction of Challan Change

Take print and save.

J1IF11 Excise

Personnel

5 Post goods receipt (MIGO) PO NO./Delivery Note/Posting

date/Excise Invioce Tab -Refer

subcontracting challan /storage

location

MIGO Stores

6 Reconcile Subcontracting challan Material Document/Challan/Fiscal year J1IFQ Excise

Personnel

7 List of subcontracting challans List click on Anexure IV J1IFR Excise

Personnel

8 Complete/Reverse/Recredit

Subcontracting challan

Complete the challan J1IF13 Excise

Personnel

9 Display Subcontracting challan Display Subcontracting challan J1IF12 Excise

Personnel

Process:

1. Create Subcontract Purchase Order :

Header Material


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Sub-Component

2. Transfer Posting of Sub-components to Vendor: (ME2O)

Select the Line Item and Create Delivery or Post Goods Issue


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3. Create Subcontract Challan w.r.t the Transferred Material Document: (J1IF01)

4.


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4. Print of Subcontract Challan (J1IF11)

5. Goods Receipt: (MIGO)

SelectRefer Subcontracting Challan, and in the sub-window, specify the correct Challan No


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If the Challan No specified is that of different Vendor, then the following below message is shown.

If the Challan No specified is that of different PO, then the following below message is shown.


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Post Goods Receipt.

6. Next Goods Receipt: (MIGO)

If the Previous Material Document for the Challan is not reconcilled, system will issue a Warning

Message.

If the Previous GR document is not reconcilled with the challan, the system will trigger a message as

shown below:


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7. Challan Reconcillation: (J1IFQ)

If the Challan No specified during GR, is wrong, then delete the challan Assignment, select the function

here.


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Select this icon, to bring in the Qty from Material Doc, to Assigned Qty in Challan.

Save the Challan.

8. Completion of Challan: (J1IF13)


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Save the Challan.

9. List of Subcontracting Challans.

11.2 Subcontract Process where Scrap is received from Vendor


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Pur.group / Co.code / Material /

Qty. / Price / Plant / Requister /Delivery date / Vendor no ./ Tax

code / Item catgory(L) /

Components

ME21N Purchaser

/ Buyer

2 Create transfer Posting of materials

sent out for sub-contracting with

reference to Subcontractor PO.


create Delivery.

ME2O Stores

3 Create Subcontracting challan Materail doc / Fiscal year / Excise

group / Series group

J1IF01 Excise

Personnel

4 Print Subcontract Challan Go to transaction of Challan Change

Take print and save.

J1IF11 Excise

Personnel




location

MIGO Stores

6 Receive scrap material from Vendor. Receipt of Scrap Material by MvT

542.

MB1B /

MIGO

Stores

7 Reconcile Subcontracting challan Material Document (MvT

101/542) / Challan / Fiscal year

J1IFQ Excise

Personnel

8 List of subcontracting challans List click on Anexure IV J1IFR Excise

Personnel

9 Complete/Reverse/Recredit



Personnel

10 Display Subcontracting challan Display Subcontracting challan J1IF12 Excise

Personnel


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11 Scrapping the Material Whatever the material received

from Vendor as scrap, is to be

scrapped with MvT551 to a cost

center.

MB1A /

MIGO

Stores

11.3 Subcontract Process: Return Delivery To Vendor



Pur.group / Co.code / Material /

Qty. / Price / Plant / Requister /

Delivery date / Vendor no ./ Tax

code / Item catgory(L) /

Components

ME21N Purchaser

/ Buyer

2 Transfer Posting of sub-component

material to Vendor.

Select the material, and do PGI

or create Delivery.

ME2O Stores

3 Create Subcontracting challan Materail doc / Fiscal year /

Excise group / Series group

J1IF01 Excise

Personnel

4 Print Subcontract Challan Go to transaction of ChallanChangeTake print and save.

J1IF11 ExcisePersonnel




location

MIGO Stores

6 Do the reconcilation of material

document

Material document /challan

number/year

J1IFQ Excise

Personnel

7 If the recived material fails in quality &

need to send back to Vendor -return

delivery

122 and 544 movement type

/plant / material docuemt

number /

MIGO Stores


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8 Create new subcontracting challans for

this outgoing materials, as this material

had come against old challan, and that

challan is already reconcilled.

Material documents number /

excise group/ series group

J1IF01 Excise

Personnel

9 Complete/Reverse/Recredit First



Personnel

10 Recive back the return delivery

materialsent by vendor

101 and 543 movement type/

challan number/ year

MIGO Stores

11 Again Reconcile & complete the return

delivery challan.

Material document/ challan

no./fiscal year

J1IFQ Excise

personnel

11.4 Subcontract Process: Cancellation of Goods Receipt


1 Create Subcontract Purchase Order PO with sub components. ME21N Purchaser

/ Buyer

2 Create transfer Posting of materials sent out for

sub-contracting with reference to

Subcontractor PO.

Select the material, and

do PGI or create Delivery.

ME2O Stores

3 Create Subcontracting challan Materail doc / Fiscal year /

Excise group / Series

group

J1IF01 Excise

Personnel

4 Print Subcontract Challan Go to transaction of

Challan ChangeTake

print and save.

J1IF11 Excise

Personnel

5 Post goods receipt (MIGO) PO NO./Delivery

Note/Posting date/Excise

Invioce Tab -Refer

subcontracting challan

/storage location

MIGO Stores


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6 Do the reconcilation of material document Material document

/challan number/year

J1ifQ Excise

Personnel

7 If the recived material is not with good quality

& Goods Receipt needs to be cancelled.

Cancellation /material

document/102 and 544movement type /plant /

material docuemt number

/

MIGO Stores

8 Create new subcontracting challans for this

outgoing materials (as this is

cancelled/rejected), as this material had come

against old challan, and that challan is already

reconcilled.

Material documents

number / excise group/

series group

J1IF01 Excise

Personnel




Personnel

10 Recive back the cancelled delivery material sent

by vendor against new challan.

101 and 543 movement

type/ challan number/

year

MIGO Stores

11 Reconcile the challan Material document/

challan no./fiscal year

J1IFQ Excise

personnel

12 Complete the cahllan Challan number/fiscal

year

J1if13 Excise

personal

11.5 Subcontracting over consumption or under consumption


1 Create Subcontract Purchase Order PO with sub components. ME21N Purchaser

/ Buyer

2 Create transfer Posting of materials sent

out for sub-contracting with reference

to Subcontractor PO.


create Delivery.

ME2O Stores


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3 Create Subcontracting challan Materail doc / Fiscal year / Excise

group / Series group

J1IF01 Excise

Personnel

4 Print Subcontract Challan Go to transaction of Challan

ChangeTake print and save.

J1IF11 Excise

Personnel




location

MIGO Stores

6 Do the reconcilation of material

document

Material document /challan

number/year

J1IFQ Excise

Personnel

7 If the material is over consumption do

subsequnet adjustment

Subsequent adjustment /

parchase order / 121and 543

movement type/ Qty

MIGO Stores

8 Do the reconcilation with this Doc #. Material document/challan no. J1IFQ Excise

personnel




Personnel

10 If the material is under consumption do

subsequnet adjustment .

544 movement type will get

triggered/purchase order number

MIGO Stores

11 Create new challan w.r.t the 544 MvT

Document.

Create new challan w.r.t the 544

MvT Document.

J1IF01 Excise

personnel

12 Post goods receipt (MIGO) MIGOGoods Reciept MIGO

12 Reconcile the challan Material document/ challan

no./fiscal year

J1IFQ Excise

personnel

13 Complete the cahllan Challan number/fiscal year J1IF13 Excise

personnel

11.6 Challan completed 180 days reverse and recredit the challan


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1 Challan Reverse Challan No./Fiscal year J1IF13 Excise

Personnel

2 Option I: Recive the material back . 542 movement type/ material/

vendor

MIGO Stores

3 Reconcile the challan with 542 Matrl

Doc.

Materail doc / Fiscal year / challan

no/Excise group / Series group

J1IFQ Excise

Personnel

4 Complete & Recredit the challan. Challan number /fiscal year J1IF13 Excise

Personnel

5 Option II: Receive the Material after

180 days as finished goods as per PO.

MIGOGoods Receipt MIGO

6 Reconcile the challan with above GR

Doc.

Materail doc / Fiscal year / challan

no/Excise group / Series group

J1IFQ Excise

Personnel

7 Complete& recredit the challan. Challan number /fiscal year J1IF13 Excise

Personnel

12 Frequently Asked Question

Question: For capital Goods, in normal posting the AED CENVAT posted for the present year is 50%,

whereas it should be 100%.

Answer : Select Excise Subtransaction type IP at the time of Posting at Excise Header Tab, which will

post AED as 100%, and BED, Ecess and SHEcess as 50% for this financial year.

Question: During Post of Excise Invoice, the system doesnt allow to increase the Excise Duty Value.

Answer : The change in duty values needs to be done in Change Excise Invoice transaction @ J1IEX and

not during Posting of Excise Invoice.

Question : I have to specify BED manually and not through condition records.

Answer : The manual excise amount for BED can be specified in the Pricing Procedure ( POCondition

tab), wherein it will update the Tax Procedure.


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CIN Accounting Entries

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Page restrictions apply Added byRajesh Banka,last edited byRajesh Banka on Jun 28, 2008

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Accounting entry in procurement

~ For Domestic Proc urem ent of Raw Material

During GR

Material StockDr.

GR/IR clearing Cr.

During Excise Invoice Credit

Cenvat Account Dr.

Cenvat Clearing Cr.

During Invoice Verification

Cenvat Clearing Dr.

GR/IR Clearing Dr.

Vendor Payable Cr.For Domest ic proc eurement of Capi tal Goods

During GR

Material StockDr.

GR/IR clearing Cr.

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Cenvat Account Dr. (50%)

Cenvat On-hold Dr. (50%)

Cenvat Clearing Cr.


Cenvat Clearing Dr.

GR/IR Clearing Dr.

Vendor Payable Cr

Subsequent of Capital Goods

Cenvat Account Dr. (50%)

Cenvat On-hold Cr. (50%)For Import Procu rement of Raw Material

During Customs Duty Clearing invoice

Custom Clearing Dr.

Custom Payable Cr.

During GR

Material StockDr.

GR/IR clearing Cr.


Cenvat Account Dr.

Custom Clearing Cr.


GR/IR Clearing Dr.

Vendor Payable Cr.

For Excise Duty Credit of Raw Material without PO

Cenvat Account Dr.

Cenvat Clearing Cr.For Excise Duty Reversal through Excise JV

Cenvat Clearing Dr.

Cenvat Account Cr.

Accounting entry when the goods are issued through MM and exciseinvoice is created (J1IS & J1IV)

During Excis e Invo ice Creat ion


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Cenvat Suspense Account Dr.

Cenvat payable Cr.

For TR6C Chal lan

PLA Account Dr.

PLA on hold Account Cr.

During Fortnig ht ly Uti l izat ion

Cenvat payable Dr.

Cenvat Account Cr.

PLA Account Cr.

Note: Cenvat Suspense Account should be cleared apprpiately using FI JV's.

Accounting entry in subcontracting reversal / Recredit

For Subcont ract ingChal lan Reversal

Cenvat Reversal Dr.

Cenvat Account Cr.

For Subcon tract ing Chal lan Recredit

Cenvat Account Dr.

Cenvat Reversal Cr.

Accounting entry in SD

For Factory Sale

Dur ing Bi l l ing Document

Customer Account Dr.

Sales Account Cr.

Cenvat Suspense Account Cr.



Cenvat payable Cr.

For TR6C Chal lan

PLA Account Dr.



Cenvat payable Dr.


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Cenvat Account Cr.

PLA Account Cr.For Stock Transfer through SD

No Accou nt ing ent r ies for Performa Bi l l ing Document



Cenvat payable Cr.

For TR6C Chal lan

PLA Account Dr.



Cenvat payable Dr.

Cenvat Account Cr.

PLA Account Cr.

Note: Cenvat Suspense Account should be cleared apprpiately using FI JV's.

CIN Excise

Documents

Transcript of CIN Excise