Notes

SAP AG 9 - 1 WINLEN
SAP AG 2005
Sales Process
Overview of the sales process
Sales processes
Sales from Factory - Configuration
Cancellation of Excise Invoice
Excise Invoice Printing
Fortnightly Utilization
Other features
Contents:
Notes
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After completing this unit, you will be able to:
Understand Excise related sales processes
Understand Sales Tax related sales processes
Run the sales processes
Sales Process : Unit Objectives
Notes
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Sales Process : Business Scenario
Removal of goods
Free Supplies
Excise Invoice Cancellation
Fortnightly utilisation
Notes
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Removal of Goods - Overview
Full Compliance across the
Distribution Process
Full Compliance across the
Distribution Process
Removal of Goods
From Factory From Depot
Sale Transfer to Factory
Return to Vendor Transfer to Depot
Return from Customer Transfer to Subcontractor
Sale Transfer to Factory
Return to Vendor Transfer to Depot
Return from Customer Transfer to Subcontractor
Removal of goods - Factory Sale
Generation of excise invoice at the time of removal of goods
Printing of Excise Invoice based on Customizable Layout Set
Fortnightly utilization of CENVAT
RG23D register entries at depot during delivery
Notes
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CENVAT Availment & Utilization
CENVAT on hold
for Cap Goods
CENVAT Account
VENDOR EXCISE
INVOICEPROCESS
GOODS
RECEIPT
DESPATCH
SALES EXCISE
INVOICE PROCESS
Excise Duty
Payable A/C
PLA A/C
DEPOSIT
FUNDS
IN PLA
ACCOUNT
Credit
PLA Account
SELECT
REGISTER Excise duty
Utilization
Transaction
ON-LINE TRANSACTIONS
FORTNIGHTLY TRANSACTIONS
Credit ED Payable A/c
(Consolidated Entry)
Debit ED Payable A/c
Debit PLA A/c
Debit CENVAT A/c
Credit CENVAT A/c
Credit CENVAT
on-hold A/c
CENVAT accounts are credited during the procurement cycle.
During removal of goods, excise invoice is created and printed. Also the duty liability is booked.
During fortnightly payment, the credit available in the CENVAT/PLA accounts is utilized.
Immediate utilization of CENVAT during excise invoice creation through customizing based on series
group.
Notes
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Sales from Factory
Single Excise Invoice and Commercial Invoice
Separate Excise Invoice and Commercial Invoice
Free Supplies
Sales - Processes
Notes
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Sales from Factory - Process
Batch Utilization
Excise Invoice Creation in Background
Automatic Determination of Excise and Series Group
Provision for immediate utilization of CENVAT
Posting to Profitability segment
DELIVERY
GOODS ISSUE
COMMERCIAL INVOICE PROFORMA INVOICE
EXCISE INVOICE GENERATION
AND PRINTING
EXCISE INVOICE GENERATION
AND PRINTING
COMMERCIAL INVOICE
Streamlined Excise
Tax Processing
Excise invoice can be created automatically in the background during creation of billing document based
on customizing for excise group
Posting of excise invoice to profitability segment if CO-PA has been set up in the system.
The profitability segment in the excise invoice is derived from the item profitability segment in the billing
document
Immediate utilization of CENVAT during excise invoice creation through customizing based on series
group.
Notes
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Sales Order
Delivery
Excise Duty posting
Proforma Invoice
Excise Invoice
Printing
Commercial Invoice
Separate Commercial and Excise Invoice
Posting to Excise duty payable
account
Posting to CENVAT accounts for
immediate Utilization
Excise invoice can be prepared and sent along with the goods.
The document flow in such a case would be OR - > JF - > JEX - > F2 . Here OR is the sales document
type, JF is the delivery type ( JF is a copy of standard delivery type LF) , JEX is the Proforma billing
document type ( JEX is a copy of standard Proforma F8 ) and F2 is the invoice.
A Proforma Excise Invoice of type JEX can be created only if Goods issue has been completed for the
Delivery. The system prevents creation of multiple Proforma Excise Invoices.
The Proforma Excise Invoice serves as the basis for MODVAT utilization. This document has to be sent
along with the Goods dispatched in case the commercial invoice is not yet created.
Notes
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Sales Order
Delivery
Excise Duty posting
Invoice
Invoice Printing
Single Commercial and Excise Invoice
Posting to Excise duty payable
account
Posting to CENVAT accounts for
immediate Utilization
The document flow in such a case would be OR - > LF - > F2 .
Notes
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Free Supplies
Can be combined with a normal order
100% discount condition added to the item pricing
Item category changed to free-of-charge
Excise posting done
In certain cases, materials are supplied free of charge while excise duty is payable on them e.g., free
supplies as volume discounts. Although the material itself is free of charge, the vendor has to pay excise
duty, since excise duty, by definition is paid on the manufacture of goods
Material can be sent free of charge, in such a case the excise should be calculated and paid at the time of
delivery but it is not charged to the customer.
If the material is to be sent free of charge, then in the pricing procedure of the reference document against
the discount condition (last condition in the pricing procedure) maintain 100%. The excise duty amount is
calculated as in case of normal sales but the customer is not billed for anything because of the 100%
discount. The excise utilization transaction picks up the excise value mentioned in the reference
document and posts it.
A separate tax code is created for Free Supplies.
Notes
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Sales from Factory - Configuration
Document Flow
OR LF F2
OR JF JEX F2
Define Allowed Delivery types to Billing types
Define Invoice split through data transfer formula in copy
control
Delivery types can be assigned to billing types though the following menu path IMG -> Logistic General -
> Tax on Goods Movement -> India -> Business Transactions -> Outgoing Excise Invoice -> Assign
excise invoice billing type to delivery type
Maintain the following entries
JF JEX
LF F2
LF JEX
NL JEX
Excise duty payable account needs to be configured in CIN related Settings.
Maintain G/L accounts against transaction type DLFC
Negative balances should be allowed for this account in FI/GL configuration
Notes
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Copy control formula for validation
Two possible requirements are
When excise and commercial invoice are the same
Copy Control Formula : OR LF F2
When excise and commercial invoice are difference. (ie) Multiple
excise invoice for one commercial invoice
Copy Control Formula : OR JF JEX F2
Sales from Factory - Configuration
The following formulas are provided to establish necessary controls required for
generating the excise invoice.

Formula Type Default Level Remarks
310 Copying
Req
JF F2 Item To ensure excise posting take place before billing
311 Copying
Req
JF JEX Heade
r
To ensure post goods issue is done for delivery doc
To ensure duplicate excise doc does not get created
350 Updaing the
Official
numbering
JF F2 Item The Official Document number will be updated based
on VAT / BOS.
351 Split
Formula
JF F2 &
JF JEX
Item Split items of a delivery into multiple billing /
proforma documents.

Split is based on
Dist Channel + Div + Delivery number +
Excise Registration ID + Chapter-ID +
Max no of items (specified in CIN customising)

For further details on routine #350 OSS Note no. 607851 can be referred.
Notes
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Sales pricing (Formula based Condition Types)
Pricing procedure - JFACT
Tax procedure TAXINJ
Excise based on material and customer data
Manual over-ride for excise value
Sales tax rate from the tax code
VAT , CST - LST determination based on tax classification
Sales from Factory - Configuration
TAXINJ procedure is attached to the country IN and a formula 352 in the calculated call of TAXINJ looks
up CIN master tables and calculates the excise duty
No jurisdiction codes are assigned to Tax Procedure TAXINJ
JFACT pricing procedure has a condition UTXJ for which the access JIND has been delivered by CIN.
The condition category of UTXJ is 1.
In JFACT pricing procedure all other tax conditions have conditions category as D.
The tax code relevant for the Sales order is picked up from the condition record of UTXJ
The tax code for VAT/LST/CST should be created individually.
The tax rate will be brought in Sales order through the Tax code determined in UTXJ condition type.
The Tax code will be determined based on the Plant Region / Customer Region and Tax Classification of
the Material and Customer. Please note that the Access table 368 is the standard access table which has
all these fields. The Access Sequence JIND used for the UTXJ condition type must have the access table
368.
Maintain Prices in
Sales and Distribution Master Data Pricing Prices
Material Price Maintain PR00 price
Others Maintain JEX2, JEXA, JEXS, JCED, JECX
Others Maintain UTXJ
Notes
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Sales pricing (Conditions record based Excise Condition Types)
Pricing procedure - JINFAC
Tax procedure TAXINN
Excise based on condition technique only
Excise based on material and customer data
Chapter Id needs to be maintained in IMG
Sales from Factory - Configuration
As of release R/3 Enterprise, TAXINN procedure can also be used for country IN
No jurisdiction codes are assigned to Tax Procedure TAXINN
During Pricing, Excise & Sales Tax are determined based on only condition technique
JINFAC pricing procedure has excise condition types with access sequences, so that the condition
records for calculating excise can be created for these conditions in SD through VK11.
The chapter-ids will have to be maintained in the Customization option IMG -> Logistics General -> Tax
on Goods movements -> India -> master data > Maintain Chapter Ids.
Notes
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Sales pricing (Conditions record based Excise Conditions)
Pricing procedure - JINFAC
Tax procedure TAXINN
Manual over-ride for excise value
No excise indicator required for customer
Sales from Factory - Configuration
Maintain the Chapter ids for the material in the additional tab for CIN related data in Foreign trade import
as well as Foreign trade export tab in material master maintenance.
Customer add on data for CIN also need to be maintained in the Customer master, however, customer
excise indicator can be ignored now as all the conditions are based on condition technique and not on
formulae for calculating excise
For each element of Excise there are three conditions one percentage condition, one quantity based
condition and one total condition which give the total duty as the sum of the other two.
For example:
Basic Excise duty percentage is mapped to condition JEXP
Basic Excise duty quantity is mapped to condition JEXQ
JEXT gives the sum of JEXP and JEXQ to give the total excise duty
Similarly conditions for Additional Excise, Special Excise and Cess need to be maintained.
All these conditions are Discount and Surcharge conditions and are posted using the Accounting key
EXD
All excise conditions are determined using the access JEXC
Notes
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Sales pricing (Conditions record based Excise Conditions)
Pricing procedure - JINFAC
Tax procedure TAXINN
Sales tax rate from the tax code
CST - LST determination based on tax classification
Sales from Factory - Configuration
Since the Tax rates are determined through the Condition record the tax code will not have any rates.
Even if you put the rates, the rate will disappear once you save the Tax code.
You may create only one tax code SD and put it in the Condition Record.
Sales Tax conditions are
Central Sales Tax JCST and JCSR
Local Sales Tax JLST and JLSR
VAT Condition JIVP
CST in VAT Regime - JIVC
All these are tax conditions are posted with the account key MWS or MW3
The Account key for these conditions should be created both in SD and FI. The condition types will be non
statistical condition in SD Pricing Procedure JINFAC. The GL account assignment for the account key will
be assigned in FI. When the system find the condition as Tax condition then it uses the same account key
assigned in SD Pricing procedure and determine the GL account from FI account key.
The Central Sale Tax can be determined using the access JCST and Local Sales Tax can be determined
using access JLST
Notes
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Sales pricing
Concessional Taxes
Tax Procedure TAXINJ with Pricing Procedure JINFAC
Tax Procedure TAXINN with Pricing Procedure JFACT
Sales from Factory - Configuration
Concessional taxes are calculated based on tax classification fields.
During transaction the tax classification may be changed to show the new tax status. This will result in a
new tax calculation.
Since the tax rates are maintained in the Tax code and the tax codes are determined based on the Tax
classification. The condition record for UTXJ should be created with the new classification with different
tax code.
The Concessional taxes for TAXINN will not be working in the similar way of changing the tax
classification as there is no tax code concept in the TAXINN Procedure.
Procedure TAXINJ can be used with both JFACT and JINFAC
For use of JINFAC with TAXINJ, the excise condition types present in TAXINJ should also be present in
JINFAC with the zero base value
Further, the duty total condition types in JINFAC should also be changed to JEX2, JEXA, JEXS, JCED,
JECX. These are Discount and Surcharge condition types
Similarly, procedure TAXINN can be used with JFACT and JINFAC
Notes
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Sales from Factory Configuration
Menu Path: SPRO Logistics General Tax on Goods
Movement India
Master Data
Maintain Form Types
Form Types Maintenance
In this IMG activity, you can define which form types you want to record in the system. You can only
use form tracking for the form types that you enter here.
Notes
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Sales Order
Delivery
Excise Invoice Creation
Invoice
Invoice Cancellation
Cancellation of outgoing excise invoice
Cancellation of excise invoice made simple
Reversal of excise invoice without marking it for cancellation
Notes
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Excise Invoice Printing
Outbound excise invoice printing facility provided
Selection based on
Excise invoice numbers
Excise year
Excise Invoice Date
Billing document
Series Group
Plant
Tracking of Printed Excise Invoice facilitating reprint of Excise
Invoice
To access this function, you can use transaction J1IP
Customize the output for billing documents as shown:
Sales and Distribution (SD)Basic Functions Output ControlOutput Determination Output
Determination Using Condition Technique Maintain Output Determination for Billing Documents.
You can use output type J1I0 and the SAPscript form J_1I_EXC_INVOICE. The driving program is
J_1IEXCP. The output determination has been set up for the billing document that is used as the
excise invoice reference.
Maintain condition records for the output
Logistics Sales and Distribution Master Data Output Billing Document Create. This
ensures that output gets copied to all the excise reference documents.
Notes
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Fortnightly Utilization
Facilitates payment of duty accumulated.
Includes
Display of pending invoices
Option for Posting date
Posting to a Business area
Selection based on a range of dates
Optionally, Selection based on a range of invoices
Option of Utilizing the Service tax Credit.
Option for Payment of Service tax from Cenvat
Facilitates Utilization strategy based on customization settings
Posting of TR6 Challan entry to PLA account
Transaction code for fortnightly utilization is J2IUN
Payment of duty accumulated .
Normal sales
For other movements
Reversals for material write-off, material non-production and other adjustments
Payment of Duties from Service tax.
Payment of Service tax from Cenvat
Consolidated debit entry is posted in the Part 2 table
Posting of TR6 Challan entry can be done to the PLA account using transaction J1IH
Notes
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Fortnightly Utilization
Option for Cenvat
Payment from Service
Tax
Option for Service tax
Payment from Cenvat
Service Tax / ECS
Credit Account
Service
tax / ECS
Payment
account
While Paying the Cenvat from Service tax the Service tax / ECS on Service tax credit account should be
entered manually.
While Paying Service tax from Cenvat account the Service tax / ECS on Service Tax Payable account should
be entered manually.
Notes
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Fortnightly Utilization
The top of the screen is the duty Payable and bottom of the screen is Available balance. You may distribute
the amount to various accounts.
Once you distribute all the amounts to various accounts then the duty at the top will show as Green.
Select the other duty and click on the Select Duty icon to utilize the next duty.
Once you utilize all the Duties then only the Save Icon will be active.
Notes
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Other Features
Excise Invoice in Background
Invoice Split
Excise Document Flow
Utilization due list
Batch Utilization
Notes
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Excise Invoice In Background
Excise invoice created automatically in background during
creation of billing document
Feature made optional and triggered based on customization
settings
Excise group and Series group automatically determined based
on customization
Provision to print excise invoice immediately after automatic
creation of excise invoice
This functionality facilitates the creation of the outgoing excise invoice in background at the time of
creation of billing document.
After the creation of excise invoice system prompts for printing .
Effects on Customizing
IMG -> Logistic General -> Tax on Goods Movement -> India -> Basic Settings -> Maintain Excise
Groups
Mark the 'Create excise invoice in background
IMG -> Logistic General -> Tax on Goods Movement -> India -> Business Transactions ->
Maintain Default Excise group - Series group determination
For export sales, maintain whether under bond, no bond, deemed exports
Optionally, Maintain sub-transaction type
Automatic determination of excise and series group
During creation of outgoing excise invoice, excise and series group along with sub-transaction type and
export type can be automatically determined by maintaining appropriate customization
Notes
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Sales Order
Delivery
Excise Duty posting
Proforma Invoice
Excise Invoice Print
Commercial Invoice
Excise Duty posting
Proforma Invoice
Excise Invoice Print
Excise Duty posting
Proforma Invoice
Excise Invoice Print
Invoice Split
The separation of excise invoice and commercial invoice allows for multiple excise invoices (through split
criteria) while invoicing the customer with a single commercial invoice.
The excise Invoice split in the Proforma excise invoice is based on split criteria like number of items in
preprinted stationery or the material chapter-id. No accounting takes place at this stage. This is a template
for the final Excise invoice to be sent to the customer.
Notes
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Delivery
Ship-to-party : 2300
Item Material Qty
10 400 5
Order
Sold-to-party : 2300
Item Material Qty
10 400 5
Billing
Bill-to-party : 2300
Item Material Qty
10 400 5
Excise Invoice
Sold-to-party : 2300
Item Material Qty
10 400 5
SAP AG 1999
Document flow of Excise Invoice
Order
. Delivery
. . Billing
. . .Excise Invoice
Excise Document Flow
Displays all the preceding documents of an outgoing excise invoice.
Also displays cancelled invoices, if any.
Notes
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Utilization Due List
Listing of all billing documents due for utilization
provided
Also includes ability to view,
Account balances
Total duty amount needed to utilize the displayed billing
documents
Deficit, if any
Notes
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Batch utilization
Excise Invoices can be created in batches
Provision of additional fields in selection screen like
Billing date
SD document category
Billing document category
Notes
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You should now be able to:
Understand Excise related sales processes
Understand Sales Tax related sales processes
Run the sales processes
Sales Process : Unit Summary