CIN As per the legal requirement every plant, which is handling excisable goods has to be registered with Central

Excise Authorities in India. In this configuration step it is seen how to maintain Excise Registrations
Excise related configuration is known as CIN configuration. CIN Configuration is a topic in itself. Country Version India comes with four pricing procedures as follows:

JINFAC (Sales from manufacturing plants) JINEXP (Export sales) JINDEP (Sales from depots) JINSTK (Stock transfers

CIN: IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings > Maintain Excise Registrations In this IMG activity, you maintain the data relating to your excise registrations

In this activity, you maintain excise registration IDs. You create one ID for each of your business's excise registrations. For each excise registration in your business create a registration ID, and state: Which taxes the registration covers (additional excise duty, special excise duty, and cess) Fields for any taxes that are not covered will be hidden in transactions involving excise duty. The maximum number of items to be printed on each excise invoice
Whether you are allowed partial CENVAT credits

1.Maintain Registration ID NUMBER, Excise code number, excise registration number 2.ECC Number: Specifies the organization's ECC number. Excise Registration Number: A number assigned to each premises or location that has registered as a manufacturer with the excise authorities. Every entity with an excise registration number is required to keep its own excise books. Excise range: Specifies the excise range in whose area the excise registration is located Excise Division: Specifies the excise division in whose area the excise registration is located. Excise Collectorate: The code of the excise collectorate in whose area the excise registration is located. Maintain Company Code Settings. In this IMG activity, you maintain the data relating to your company codes. Document Type for CENVAT Postings.

Maintain Plant Settings - In

this IMG activity, you maintain excise information relating to

your plants.
Plant Settings - In

this activity, you maintain excise information relating to your plants.

For each plant: Specify whether it is a manufacturing site or a depot. Assign it an excise registration ID. - You can assign the same ID to more than one plant, if required.
Maintain Excise Groups - In this IMG activity, you define your excise groups

As per the legal requirement in India each Excise Group has to have one set of books
Maintain Series Group - In

this IMG activity, you define the different excise series groups within your company. Series groups allow you to maintain multiple number ranges for the outgoing excise documents
Maintain Series Group - In

this IMG activity, you define the different excise series groups within your company. Series groups allow you to maintain multiple number ranges for the outgoing excise documents. Based on excise regulations and exemptions from the authorities you can maintain multiple number series for outgoing documents. But each of these series has to be declared to the excise authorities. Maintain Excise Duty Indicators - In this IMG activity, you maintain the excise duty indicators. IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty > Select Tax Calculation Procedure In this IMG activity, you specify which tax procedure you want to use for determining excise duties and sales taxes on input materials in India.
If you use condition-based excise determination, use a copy of the tax procedure TAXINN. If you use formula-based excise determination, use a copy of the tax procedure TAXINJ.

This tax procedure also supports condition-based excise determination, so that you can work with both concurrently. We strongly recommend that new customers use condition-based excise determination .

In this IMG activity, you define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination. The purpose of this activity is assigning the tax code for purchasing documents to the company codes where it will be used. This activity is done if you use condition-based excise determination.
See also : SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materials Management (MM) -> Condition-Based Excise Determination and -> FormulaBased Excise Determination. IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty > Condition-Based Excise Determination

When you enter a purchasing document, for example, a purchase order, the R/3 System automatically calculates the applicable excise duties using the condition technique. Features : The standard system comes with two tax calculation procedures. TAXINN is only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise determination. Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable. Since the exact rates of excise duty can vary on a large number of factors, such as which vendor you purchase a material from, or which chapter ID the vendor stocks the material under, you create condition records for every sort of excise duty. When you come to enter a purchasing document, the system applies the excise duty at the rates you have entered in the condition records. Customizing : Make the settings in Customizing Basic -> India -> for Logistics General, by choosing Taxes on Goods Movements Account -> Excise Duties Using Condition Technique and -> Settings Determination. These activities include one activity where you define a tax code for condition-based excise determination. Master Data - Create condition records for all excise duties that apply, and enter the tax code for condition-based excise determination in each. Day-to-Day Activities - When you enter a purchase order or other purchasing document, enter the tax code for condition-based excise determination in each line item. The system then calculates the excise duties using the condition records you have created. When the ordered materials arrive, you post the goods receipt and the excise invoice. The system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice.
Creating Condition Records for Excise Duty 1. In the command field, enter FV11 and choose .

2. Enter the condition type that you want to create a condition record for and choose . The Key Combination dialog box appears. 3. Select the combination of objects that you want to create the condition record for. On the dialog box, Control Code means "chapter ID." So, for example, to create a condition record for a tax that applies to a combination of country, plant, and chapter ID, select Country/Plant/Control Code. 4. Choose . 5. Enter data as required. - In the Tax Code field, enter the dummy tax code that you have defined. 6. Save the condition record.

MAINTAINING OF MASTER DATA Transaction Code J1ID Basically Excise Mater Data for a Material, Plant & Vendor/ Customer 1. MASTER DATA 1. Chapter ID Just check the Chapter ID created in IMG setting under Master Data is appearing here or not. 2. Material and Chapter ID combination - Make the entry for Material and Chapter ID for your Plant. If you are using this Material for Subcontracting, give the tick in subcontracting box. Dont forget to give X mark if the material is declared to Excise at appropriate column. Please select the proper material type. 3. Material assessable Value You can fix up the Net Dealer Value and assessable Value of the Material at a particular Plant 4. CENVAT Determination Here you are declaring the input and Output material for a particular Plant. Tick on default Modvat Indicator 2. EXCISE STATUS 1. Vendor Excise Details Enter Vendor details already existing. Put the Excise Indicator and CENVAT determination tick. 2. Customer Excise Details - Enter Customer details already existing . Put the Excise Indicator and CENVAT determination tick. 3. SSI Rate If the Vendor is SSI, enter the SSI status, Excise duty and SSI rating. 4. Excise Indicator for Plant Enter the Excise detail of your Plant with Excise Indicator and Number range group. 5. Excise Indicator for Plant & Vendor Enter the combination 6. Excise Indicator for Plant and Customer SD functionality 3. EXCISE RATES 1. Excise Tax Rate Specify the excise rates for BED, AED & SEcess along with Chapter ID and Excise Indicator. 2. Cess Rate Enter the Cess rate, if existing. 3. Exceptional Material Excise Rate If the material is having any exceptional rates, enter here. Please note that this rate will be picked up on priority, even if you are maintaining another rate in Excise Tax rate. 4. Sales Tax set off percentages Can enter the data, if applicable.

BUSINESS SCENARIOS 1. INTERNAL PROCUREMENT OF RAW MATERIAL Its a normal Procurement cycle but with Excise transactions: Pre-requisite Customization and creation of Vendor, Material and Maintaining Excise Master Records in J1ID. Step 1. Creation of Purchase Order Its a normal ME21N activity, with GR based Invoice Verification and a proper Tax Code (Created in FTXP with BED, ED Cess and SEcess, etc) in Invoice tab of Item detail. Check and Save the PO and note the PO Number Step 2 Goods Receipt Do the normal MIGO transaction for that Purchase Order. On allocating the Storage Location and Flagging the Item OK, Excise Tab is coming in Header and Item. On Excise tab in Header Enter your Excise Invoice Number and date in respective tabs and check the BED, ED Cess& SEcess values and rates in Item Detail, select Only capture excise Invoice tab in header , Check and Save the Data. Note the material document Number. Part 1 of Register RG 23A or C will be updated by this Step 3 Posting Excise Invoice It is the same transaction J1IEX Select the tab POST tab and enter the Vendor excise number. No data entry is required. Check the document. Click on Simulate CENVAT icon and see the posting. If satisfactory, click on Post CENVAT to saving. Note the Accounting document Number and serial Number. Excise Invoice is posted now. Register RG23A Part I & II are updated Step 5 Vendor Invoice Verification Its a normal MIRO transaction. Enter the tax amount separately. Simulate and then Post the Invoice. Check the postings of BED, EDcess& SEcess, CENVAT clearing account and GR/IR clearing account. Step 6 Data and Reporting 1. For Checking CENVAT Register Transaction code J2I9 2. For Printing Excise Registers Transaction Code J2I6 (Any Excise Register can be printed)

2. PROCUREMENT OF CAPITAL GOODS The procedure is same, but uses an account assignment asset material in Purchase Order. The difference is the duties are posted in RG23C Part I&II. Also note that the credits will be 50% for the current year and the balance is credited in CENVAT on Hold account. 3. PROCUREMENT - IMPORTS Step 1 Creation of Purchase Order Select the Vendor (Import) for the PO. Enter the data. In Invoice tab, dont select GR based Invoice verification and select a Tax Code V0. In Conditions tab, in condition JCV1 (In CVD) enter the percentage of CVD to be remitted to Customs. Select the condition go to details and attach the Vendor as Customs. Enter all the required Tax percentages manually and attach respective vendor-Customs, if applicable Check and save. Step 2 Invoice verification for the CVD Practically when material is arrived at Customs, they will issue Bill of Lading. This BOL invoice value in MIRO. Select the PO and select Planned Delivery cost tab. In header enter the CVD amount and in details tab, check the Invoicing party as Vendor Customs. Check and Save the document. See that the amount is posted in CVD/ customs clearing account Step 3 Capturing of excise Invoice for Bill of Entry Its an ordinary J1IEX transaction. But while entering the PO system will ask for a commercial invoice number, enter the document number which is created during step2. Enter the PO number and capture excise Invoice. Please see that the CVD is treated as ordinary BED. Note the Excise Invoice number. Step 4 Posting of Goods Receipt MIGO transaction w.r.to PO. Enter the Excise Invoice and commercial invoice number. Check and save the document. Step 5 Posting of Excise Invoice Ordinary J1IEX transaction. Check the data and save the document. Note the Serial number and Accounting document number. Step 6 - Invoice Verification Standard MIRO transaction for Vendor Invoice. Check the Reports.

4. SUBCONTRACTING Step 1 Create a Subcontracting Order It is an ordinary ME21N functionality for creating SC Order. See that Components are attached in CS01 or in PO Materials data itself. Also see that the material is declared as a subcontracting material in Master Data (Material and Chapter ID combination) Select Tax code as V0 and select GR based IV. Step 2 Transfer posting of components It is also an ordinary MB1B transaction. You can refer the PO and post. Step 3 Creation of Subcontracting Challan In CIN role go to creation of subcontracting challan (Transaction Code J1IF01). The screen will display the material document number created in transfer posting. Input other required detail, if nay and save the document. Material will go to subcontractor along with this challan. Printing of challan should be selected in header Now the processing is completed and he is supplying the finished product Step 4 Goods Receipt Its the same procedure what we have done in normal domestic procurement. But after entering the details, excise tab will appear in header and item details. In header tab select the option of Refer Subcontracting challan. Go to the details icon and enter the subcontracting challan number created in step 3. Save the GR and note the document number. Step 5 Reconciling the Subcontracting challan Quantity Transaction code is J1IFQ. Screen will display the material document of Goods receipt. Click on reconcile icon, a new screen appears. Enter the assigned quantity at item detail and save the document. Step 6 Completing the Subcontracting Challan Transaction code J1IF13. Screen will show the detail of challan with a status In process, check the data and save the document. System will give a message that the challan is completed