Sunday, June 26, 2011

SAP CIN - Country India Version ~ Volume 1

Purpose
Country Version India (CIN) contains a number of enhancements to standard Sales and Distribution (SD) functions that allow you to handle local requirements, in particular excise duty.
Features
In Country Version India, (CIN), this component handles sales processes as found in India. In addition to the generic functions, it allows you to:
Handle CENVAT in your sales processes
The system calculates excise on your sales and creates excise invoices as required and makes the appropriate postings to your CENVAT accounts.
It covers sales from factories, sales from depots, and offers functions for other types of goods movements; it also covers sales to export-oriented units and export sales.
Record concessional and exemption forms sent to you by your customers
Make adjustment postings to your CENVAT accounts
Excise Invoice (Outgoing)
Definition
The document that acts as the proof of payment of excise duty and is required for the customer to take CENVAT credit on the item
Use
In the SAP System, there are three different procedures for creating excise invoices
Sales direct from the factory
This procedure is for when you sell manufactured goods straight from the factory at which they were produced, in which case you levy excise duty when the goods leave the factory on their way to the customer.
If, when you send the goods to the customer, you enclose the commercial invoice, you create the excise invoice with reference to the commercial invoice. If you want to send the commercial invoice after you have dispatched the goods, however, you create the excise invoice with reference to a pro forma commercial invoice. For more information about these procedures, see Sales from Factories.
As well as creating excise invoices individually, you can also create them in batches (see Creation of Excise Invoices in Batches).

Sales from depots
A depot is a site at which the goods are stored, away from the factory at which they were produced. In this procedure, you have to levy the excise duty when you transfer the goods from the factory to the depot, and then make sure this is passed on to the customer when it makes a purchase. For more information, see Sales from Depots.
Sales (other goods movements)
Some other goods movements may also require you to create an excise invoice with reference to other documents. The SAP System offers separate functions for these purposes (see Excise Invoices (Outgoing) for Other Movements).

Structure
Numbering of Excise Invoices
Outgoing excise invoices have two numbers: an internal document number, which is assigned immediately you create an excise invoice; and an excise invoice number, which is not assigned until you have verified and posted it.
As far as the excise invoice number is concerned, you have to number your outgoing excise invoices in sequential order, starting each year on 1 April. You must notify the excise authority of the jurisdiction of the invoicing location. The serial number must be printed on each page of the excise invoice.
Each number range is governed by a series group. You must create at least one series group in order to be able to number the excise invoices. If you need more than one number range, you must create the corresponding number of series groups. You do so in the CIN Implementation Guide (IMG), by choosing Global Settings ® Series Groups.
Number of Line Items Per Excise Invoice
Some states allow you to include only a limited number of items for each page of an excise invoice (for example, if the excise invoices are to be printed on prenumbered forms). You can customize the system so that it prints the excise invoice accordingly, in the CIN IMG, by choosing Global Settings ® Excise Registration IDs.

Customer Master (Excise Data)
Definition
The part of the customer master record that contains information relating to Indian excise duty.
Use
In conjunction with other data, this data is used to calculate excise duty on various transactions.
To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes ® Master Data ® Excise Rate Maintenance, and then select the following options described below.
Structure
The excise part of the customer master contains the following information:
Customer Excise Details
On this screen, you enter your customers' tax registration numbers, which are used for various forms of correspondence and reports:
1. Excise registration number (and the range, division, and collectorate in which this is located)
2. Central sales tax (CST) number
3. Local sales tax (LST) registration number
4. Permanent account number (PAN)
In order for the system to be able to calculate which rate of excise duty to apply on sales to the customer, you must also assign it a customer excise duty status (for more information about how this works, see Determination of Excise Duty Rates).
Excise Indicator for Plant and Customer
On this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).
Determination of Excise Duty
Use
When you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.
Prerequisites
In order for the system to be able to determine which rate of excise duty to apply, you must have maintained all the data on the Excise Rate Maintenance screen, which you can access from the SAP Easy Access screen by choosing Indirect Taxes ® Master Data ® Excise Rate Maintenance.
You maintain the following types of data:
Plant master data
You assign each of your plants an excise duty indicator. You can use the same indicator for all the plants with the same excise status from a legal point of view, such as all those that are in an exempt zone.
See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit).
Vendor master data
For each of your vendors with the same excise status from a legal perspective, you define an excise duty indicator. You must also specify the vendor type – for example, whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as a small-scale industry.
For each permutation of plant indicator and vendor indicator, you then create a final excise duty indicator.
Customer master data
Similarly, you assign the same excise duty indicator to each of your customers that share the same legal excise status.
Again, for each permutation of plant indicator and customer indicator, you then create a final excise duty indicator.
Material master data
Each material is assigned a chapter ID.
Excise tax rate
For every chapter ID and final excise duty indicator, you maintain the rate of excise duty.
If your business only qualifies for partial CENVAT credit, you must customize your system accordingly.
Activities
Let us consider an example to illustrate how the system determines which rate of excise duty to apply to a material. Assume you are posting a sale of ball bearings to a customer. The system automatically determines the rate of excise duty as follows:
Looks up the customer master data to see what status you have assigned the customer.
Let's assume you've assigned the customer status 3.
Looks up the plant master data to see what status you have assigned the plant.
Similarly, your plant has status 2.
The system looks up the table under Excise Indicator for Plant and Customer to see what the final excise duty indictor is for customer status 3 and plant status 2: It is 7.
The system determines the chapter ID of the ball bearing for the plant.
Let’s assume the chapter ID at plant for the ball bearings is 1000.01.
Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000.01 under status 7.
Plant Master (Excise Data)
Definition
The part of the plant master record that contains information relating to Indian excise duty.
Use
In conjunction with other data, this data is used to calculate excise duty on various transactions.
To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes ® Master Data ® Excise Rate Maintenance, and then select the following options described below.
Structure
The excise part of the plant master is divided into the following screens:
Excise Indicator for Plant
On this screen, you enter your plants' tax registration numbers, which are used for various forms of correspondence and reports:
1. Central sales tax (CST) number
2. Local sales tax (LST) registration number
3. Permanent account number (PAN)
In order for the system to be able to calculate which rate of excise duty to apply on purchases for this plant, you must also assign it a plant excise duty status (for more information about how this works, see Determination of Excise Duty Rates).
Excise Indicator for Plant and Vendor
On this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).
Excise Indicator for Plant and Customer
On this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).

Automatic Creation of Excise Invoices
Use
The SAP System can automatically create an outgoing excise invoice for you immediately you post a commercial invoice (or a pro forma invoice) for a customer sale. This function applies to excise invoices for sales from factories only.
Prerequisites
To activate this function, in the Country Version India (CIN) Implementation Guide (IMG), make the following settings:
1. Under Global Settings ® Excise Groups, select Create EI.
This activates the automatic creation function.
2. Under Sales and Distribution ® Utilization Determination.
Here, you specify which CENVAT accounts the system is to post the different types of excise duty to.
3. Under Sales and Distribution ® Excise Group–Series Group Determination.
Here, you specify which excise group and series group the excise invoices are to be created for.
Features
When you post an invoice, the system creates an excise invoice. All the information that it needs to create the excise invoice is provided either by the invoice or by the Customizing settings that you have made in Sales and Distribution. It also determines the excise invoice type automatically by means of a user exit.
Creating Excise Invoices for Stock Transfers
1. From the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® For Depot ® Create/Change/Display.
2. In the Material document field, enter the goods receipt number and choose .
The system displays the information from the goods receipt, for example, the sending plant, the excise registration, the range, the division, and the collectorate.
3. Choose Details.
The system copies the items from the goods receipt document. In the depot it is possible to have a separate excise invoice at line item level.
4. Enter the internal document number of the excise invoice sent by the factory.
5. Choose More documents to go the excise invoice details screen.
6. Enter the internal document number of the excise invoice from the factory.
The system copies the information to the line item (for example, the excise invoice number, the excise invoice date, the item number , the chapter ID, the excise invoice quantity, the amount of excise duty paid, the excise base value, and the serial number of the Part II register entry with which the excise was paid).
You can change the receipt quantity to match the actual quantity received at the depot, if necessary. The system automatically adjusts the excise accordingly.
7. Go back to the item details screen.
8. Save the excise invoice.
Creating Excise Invoices for Direct Purchases
1. From the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® For Depot ® Create/Change/Display.
2. In the Material document field, enter the goods receipt number and choose .
The system displays the information from the goods receipt, for example, the sending plant, the excise registration, the range, the division, and the collectorate.
You can also maintain the excise registration details for the ship-from party, as for with the vendor. The ship-from can be different from the vendor code. (The delivering plant can be maintained as a ship-from in the system. When a valid ship-from is entered, the excise registration details copied from the vendor will be overwritten by the ship-from excise registration details.)
The ship-from registration details displayed can also be overwritten manually.
The dealer's commercial invoice number can be stored in the vendor excise invoice number, as in this case the dealer himself will not have an excise invoice.
3. Choose Details.
The system copies the items from the goods receipt document. It also copies the vendor's excise invoice number and the serial numbers of the entries in the RG 23A, RG 23C, and personal ledger account (PLA) registers.
4. Enter the internal document number of the excise invoice sent by the factory.
5. Select an item and choose More documents to go the excise invoice details screen.
In the case of direct purchases, there will not be any excise invoice in the system, so leave the internal document field blank. The vendor's invoice will show the details of the excise invoices through which excise has been paid for the item that is being dispatched. You can enter these details here.
6. For each item, the chapter ID, excise base value, and excise duty amounts are defaulted from the purchase order. You can change them if there is any difference. Enter the excise amount paid and the receipt quantity. You also enter the Part II register serial numbers with which the excise duty was paid and the excise registration information from the original excise invoice.
7. Go back to the item details screen.
8. Save the excise invoice.
The system creates an entry in register RG 23D. You can change the excise invoice as long as it has not been used in any sales.
Assigning Excise Invoices to a Delivery
Use
You follow this procedure to specify which excise invoices are to be assigned to a delivery from a depot (or other material document).
You can also automate this procedure, using the batch selection program (J_1IJCHK), by making the appropriate Customizing settings in the Country Version India (CIN) Implementation Guide (IMG).
Procedure
1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Depot ® Create/Change/Display ® Delivery or Material Document ® RG 23D Selection.
2. Enter the delivery document number or the material number and choose .
3. Select the excise invoice you want.
4. Choose .
5. Choose Excise invoice.
A list of excise invoices appears. These are the excise invoices at the depot with a balance quantity.
The system also shows a list of the A certificates that can be used. You can pick up any of the A certificates, but they must be for the same excise invoice. You can only pick up an A certificate in its entirety. You cannot select part of an A certificate.
6. Select the excise invoices that are relevant to the delivery.
7. Specify what quantity to be used from each excise invoice.
The system recalculates the excise accordingly.
8. Go back to the item details screen.
9. Save the data.
Result
The system creates an entry in register RG 23D and generates the depot excise invoice numbers.
If you selected any A certificates, the system also generates additional entries in the RG 23D register. The system marks the original A certificates as updated, so that they cannot be used for any other removals.

Continue.... see Volume 2 (Next post)

1 comment:

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