COUNTRY INDIA VERSION (CIN) - MATERIAL MANAGEMENT
Contents
2
3
1.1
EXCISE REGISTRATION ..................................................................................................... 3
1.2
EXCISE GROUP .................................................................................................................... 3
1.3
SERIES GROUP .................................................................................................................... 3
ESSENTIAL MASTER DATA FOR EXCISE.............................................................................. 4
2.1
Chapter – Id ........................................................................................................................... 4
2.2
Material Chapter ID combination ...................................................................................... 4
2.3
Material Assessable value .................................................................................................. 5
2.4
CENVAT Determination....................................................................................................... 5
2.5
Vendor Excise details.......................................................................................................... 5
TAX CONDITION RECORDS ...................................................................................................... 6
3.1
Cenvatable Excise Duties Conditions (%ge) .................................................................. 6
3.2
Cenvatable Excise Duties Conditions (Qty) .................................................................... 6
3.3
Non- Cenvatable Excise Duties Conditions(%ge).......................................................... 7
3.4
Non- Cenvatable Excise Duties Conditions(Qty) ........................................................... 7
3.5
VAT Conditions .................................................................................................................... 7
3.6
CST Conditions ................................................................................................................... 7
3.7
Service Tax Conditions: Non-Inventoried ....................................................................... 8
3.8
Service Tax Conditions: Inventoried ................................................................................ 8
3.9
Tax Conditions to be Maintained ...................................................................................... 8
4.1
Create the Purchase Order ................................................................................................. 9
4.2.1
Option I: Capture Excise Invoice @ Goods Receipt ............................................... 9
4.2.2
Option II: Capture Excise Invoice separately ........................................................ 10
4.3
To check the status of all the excise invoices captured ............................................ 11
4.4
Post Excise Invoice ........................................................................................................... 11
5
Procedure for Claiming CENVAT for Capital Goods .......................................................... 13
6
Procedure for Claiming Duties for Imported Goods .......................................................... 14
9
Procedure for Inventorizing Custom Duties Purchased for a Depot .............................. 18
10.1
Return Delivery (MvT : 122) ............................................................................................ 19
10.2
Cancellation of Material Documents ............................................................................ 20
1
10.3
Purchase Order Returns ................................................................................................. 22
10.4
CENVAT Adjustment Postings (J1IH – Excise JV) .................................................... 22
11
10.4.1
Making Adjustment Postings for Scrap ................................................................ 22
10.4.2
Making Adjustment Postings for Materials Not Used in Production .............. 22
10.4.3
Making Adjustment Postings for Additional Excise Paid to Vendors ............ 23
10.4.4
Making Adjustment Postings for Money Transferred to PLA........................... 24
10.4.5
Canceling Excise Invoices ...................................................................................... 24
10.4.6
Making Adjustment Postings for Other Transactions ....................................... 25
Subcontract Challan ............................................................................................................... 27
11.3
Subcontract Process: Return Delivery To Vendor .................................................... 30
11.4
Subcontract Process: Cancellation of Goods Receipt ............................................. 31
11.5
Subcontracting over consumption or under consumption ..................................... 32
11.6
Challan completed 180 days reverse and recredit the challan ............................... 33
12
Frequently Asked Question .................................................................................................. 33
2
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 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:
•
•
•
•
1.1
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
EXCISE REGISTRATION
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
3
Series Group determines number range for outgoing excise invoice / challan (e.g. 57AC
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
Chapter – Id
Select Chapter Id Go to New Entries 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
Enter material, plant and chapter ID combination in the respective tabs.
Go to New Entries 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
4
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 can be credited 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
Go to New Entries and Enter the details
2.4
CENVAT Determination
In this section 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.
Select Cenvat Determination
Go to New Entries and Enter the details
2.5
Vendor Excise details
5
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 indicator 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
Go to New Entries and Enter the 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 Excise 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 invtry % JHX1
IN: A/P S&HEC setoff
JAOP
IN: AED setoff %
JAX1
IN: A/P AED setoff
3.2
Cenvatable Excise Duties Conditions (Qty)
Condition Type Description
Setoff Condition Type Setoff Condition Desc
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
IN: AED setoff Qty
JAX1
IN: A/P AED setoff
6
3.3
Non- Cenvatable Excise Duties Conditions (%ge)
Condition Type Description
Setoff Condition Type Setoff Condition Desc
JMIP
IN: BED inventory % JMX2
N: A/P BED inventor
IN: A/P ECS inventry
JECO
IN A/P ECes setoff % JEX2
JSEO
IN A/P S&H setoff % JHX2
IN: A/P S&HEC invtry
IN: A/P AED inventor
JAIP
IN AED inventory % JAX2
3.4
Non- Cenvatable Excise Duties Conditions (Qty)
Condition
Type
JMIQ
JECQ
JSHQ
JAIQ
3.5
JVCD
3.6
Setoff Condition
Desc
N: A/P BED inventor
IN: A/P ECS inventry
IN: A/P S&HEC invtry
IN: A/P AED inventor
VAT Conditions
Deductable
Condition Type
JVRD
Setoff Condition
Type
IN: BED inventory Qt JMX2
IN ECS inventory Qty JEX2
IN S&HECS invent
JHX2
Qty
IN AED inventory Qty JAX2
Description
Description
A/P VAT RM
Deductible
A/P VAT CG
Deductible
Non – Deductable
Condition Type
JVRN
JVCN
CST Conditions
Condition Type Description
JVCS
A/P CST Non Deductible.
7
Description
A/P VAT RM Non
Deduc.
A/P VAT CG Non
Deduc.
3.7
Service Tax Conditions: Non-Inventoried
Condition Type Description
JSRT
A/P SERVICE TAX
JEC3
A/P ECS for ST
JES3
A/P SECess for ST
3.8
Service Tax Conditions: Inventoried
Condition Type Description
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
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
Maintain Excise Rate
1
Maintenance details
2
Maintain Tax Conditions
3
Create Purchase Order
4
Goods Receipt (Capture
Excise Invoice)
Inputs
Material, chapter Id,
Assessable Value
Plant / Material / Vendor
/ Tax Classification
Vendor / Material / Qty /
Plant / Price / Tax Code
PO No. / Qty / Excise Inv
# / Ex. Invoice Dt
8
T.Code Role
Purchaser / Buyer /
J1ID
Excise Personnel
FV11
Purchaser / Buyer
ME21N Purchaser / Buyer
MIGO Stores
5
6
7
8
9
List of Excise Invoice,
where it is captured but not Excise Group
Posted
Change Excise Invoice ( if
Vendor Ex. Inv / Date
Required)
Post Excise Invoice
Vendor Ex. Inv / Date
Excise Group / Start Dt /
Updating of Registers
End Dt
Excise Group / Start Dt /
Print of Registers
End Dt
4.1
J1I7
Excise Personnel
J1IEX Excise Personnel
J1IEX Excise Personnel
J2I5
Excise Personnel
ZJ2I6
Excise Personnel
Create the Purchase Order
Purchase Order is created, with Tax code @ line item – Invoice 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
4.2.1
Goods Receipt
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 Enter – at this point of
time system will copy all the relevant information from PO. Enter received Quantity in
the Quantity Tab – quantity 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
9
(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 received 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
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 separately
Transaction code J1IEX_C
Capture the Vendor’s 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 is being captured after Goods Receipt.
Press Enter, following screen will appear
10
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 invoice. The Supplier can later
on submit a 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.
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
11
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.
`POST CENVAT’
System will post the cenvat amount in RG23 Part II based on material type (inputs /
Capital Goods).
However if excise details are changed go to the Change mode...
can change the following:
1. Chapter Id
2. Description of material
3. Invoice No.
4. Document date
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. Can change the
excise vendor also.
12
5
Procedure for Claiming CENVAT for Capital Goods
Step Description
1
2
3
4
5
6
Maintain Excise Rate
Maintenance details
Maintain Tax
Conditions
Create Purchase
Order
Goods Receipt
(Capture Excise
Invoice)
List of Excise Invoice,
where it is captured
but not Posted
Change Excise
Invoice ( if Required)
Inputs
Material, chapter Id,
Assessable Value, declare
material as Asset /
Consumable
Plant / Material / Vendor /
Tax Classification
Vendor / Material / Qty /
Plant / Price / Tax Code
T.Code
Role
J1ID
Purchaser /
Buyer / Excise
Personnel
FV11
ME21N
Purchaser /
Buyer
Purchaser /
Buyer
PO No. / Qty / Excise Inv # /
MIGO
Ex. Invoice Dt.
Stores
Excise Group
J1I7
Excise
Personnel
Vendor Ex. Inv / Date
J1IEX
Excise
Personnel
Excise
Personnel
7
Post Excise Invoice
Vendor Ex. Inv / Date
J1IEX
8
Capital Goods
Transfer of Credit (
post 50% credit)
Company code / Excise
Grp. / Plant /
J2I8
9
Updating of Registers
10
Print of Registers
Excise Group / Start Dt. /
End Dt.
Excise Group / Start Dt./
End Dt.
Excise
Personnel
Excise
ZJ2I6RG23C
Personnel
Excise
Personnel
J2I5
Businesses are allowed to set off excise duty on purchases of capital goods against
excise duty on outputs. However, unlike with raw materials, 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), have classified the capital goods as such.
Features: When post an excise invoice that contains capital goods, the system posts
half of the excise duty to CENVAT account and post the rest to a G/L account for
CENVAT on hold. In following years, 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).
13
Steps: When working with excise invoices that include capital goods, note the
following:
•
Capturing vendor excise invoices
When create an excise invoice with capital goods, have to set the material type to A
(assets), C (consumables), or T (tools).
•
Posting excise invoices
When 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)
* *Use this report to display a list of the vendor excise invoices where the vendor has
levied excise duty but have not posted it (in full) to CENVAT account. This is particularly
useful in the case of capital 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 :
•
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
Select the excise invoices that want and choose Transfer credit. If 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.
can select all or select items and then press `Transfer Credit’
6
Procedure for Claiming Duties for Imported Goods
Step Description
1
Maintain Excise Rate
Inputs
T.Code
Material, chapter Id, J1ID
14
Role
Purchaser /
Maintenance details
2
3
4
5
6
7
8
9
10
Assessable Value
Vendor / Material /
Create Purchase Order
Qty / Plant / Price /
Zero Tax Code(VI)
Custom duty
Conditions:
JCDB - IN Basic
Customs
JCV1 - IN CVD Foreign Vend.
Amend Purchase Order with JECV - IN ECSthe Customs Duties
CVD: For Vend
conditions (for domestic
J1CV- IN HECScustom vendor)
CVD: For Vend.
JEDB- IN ECS on
Cust. Duty
JSDB - IN SH ECS
on BCD
JADC - IN Ad Duty
Cus:For V
PO / Vendor code :
Post Invoice for Custom
Planned Delivery
Vendor and Foreign Vendor.
Costs
PO No. / Qty /
Goods Receipt (Capture
Excise Inv # / Ex.
Excise Invoice)
Invoice Dt.
List of Excise Invoice, where
Excise Group
it is captured but not Posted
Change Excise Invoice ( if
Vendor Ex. Inv /
Required)
Date
Vendor Ex. Inv /
Post Excise Invoice
Date
Excise Group / Start
Updating of Registers
Dt. / End Dt.
Excise Group / Start
Print of Registers
Dt. / End Dt.
Buyer / Excise
Personnel
ME21N
Purchaser /
Buyer
ME22N
Purchaser /
Buyer
MIRO
Accounts
MIGO
Stores
Excise
Personnel
Excise
J1IEX
Personnel
Excise
J1IEX
Personnel
Excise
J2I5
Personnel
ZJ2I6 /
Excise
ZJ2I6RG23C Personnel
J1I7
7 Procedure for Claiming CENVAT for Raw Materials
without Material ID
15
Step Description
Maintain Excise Rate
1
Maintenance details
the Chapter Id.
Maintain Tax
2
Conditions
Create Purchase
3
Order
4
5
6
Goods Receipt
(Capture Excise
Invoice)
Inputs
T.Code Role
Purchaser /
Chapter Id
J1ID
Buyer / Excise
Personnel
Maintain tax conditions for
Purchaser /
FV11
Plant/Material Group combination.
Buyer
Vendor / Material / Qty / Plant /
Purchaser /
ME21N
Price / Tax Code
Buyer
PO No. / Qty / Excise Inv # / Ex.
Invoice Dt. Also in the line item of
MIGO Stores
Excise Tab, specify the Chapter Id
& Matrl. Type.
List of Excise Invoice,
where it is captured Excise Group
but not Posted
Change Excise
Vendor Ex. Inv / Date
Invoice ( if Required)
J1I7
Excise
Personnel
Excise
Personnel
Excise
J1IEX
Personnel
Excise
J2I5
Personnel
Excise
ZJ2I6
Personnel
J1IEX
7
Post Excise Invoice
Vendor Ex. Inv / Date
8
Updating of Registers Excise Group / Start Dt. / End Dt.
9
Print of Registers
Excise Group / Start Dt. / End Dt.
8 Claiming Custom Duties Purchased from Dealer (who
has imported the Matrl.)
Use : The materials are procured 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.
Step Description
1
2
Inputs
T.Code
Maintain Excise Rate Material, chapter Id,
Maintenance details Assessable Value
Maintain Tax
conditions
J1ID
Maintain tax conditions with
BED / AED conditions as 0%,
as this is going to be
FV11
replaced by CVD and SAD
values from the pricing
16
Role
Purchaser /
Buyer /
Excise
Personnel
Purchaser /
Buyer /
Excise
Personnel
Create Purchase
Order
Maintain CVD and
SAD values in the
NOTE
pricing procedure –
PO Condition Tab.
Post Invoice for
3
Custom Vendor and
Foreign Vendor.
Goods Receipt
4
(Capture Excise
Invoice)
List of Excise
Invoice, where it is
5
captured but not
Posted
Change Excise
6
Invoice ( if Required)
3
7
8
9
procedure.
Vendor / Material / Qty /
ME21N
Plant / Price / Tax Code
PO – Line Item Condition tab
– specifies CVD Amt for the
ME21N
cond’n type “JEXC” and SAD
for cond’n type “ZADC”.
Purchaser /
Buyer
Purchaser /
Buyer
PO / Vendor code : Planned
MIRO
Delivery Costs
Accounts
PO No. / Qty / Excise Inv # /
MIGO
Ex. Invoice Dt.
Stores
Excise Group
Excise
Personnel
J1I7
Excise
Personnel
Excise
Post Excise Invoice Vendor Ex. Inv / Date
J1IEX
Personnel
Updating of
Excise Group / Start Dt./ End
Excise
J1I5
Registers
Dt.
Personnel
Excise Group / Start Dt. /
ZJ2I6 /
Excise
Print of Registers
End Dt.
ZJ2I6RG23C Personnel
Vendor Ex. Inv / Date
17
J1IEX
9 Procedure for Inventorying Custom Duties Purchased for
a Depot
Use: The materials are procured for a depot, where, the Custom Duties get inventoried,
captured in transaction J1IG and then the same duties are picked in sales invoice for
passing on to Customer.
Process:
Step Description
Inputs
1
Maintain Excise Rate
Maintenance details
Material, chapter Id,
Assessable Value
2
Maintain Zero Tax conditions
Maintain Zero Tax
conditions
Vendor / Material / Qty /
3
Create Purchase Order
Plant / Price / Zero Tax
Code
The following Condition
types needs to be
selected for inventorying
the Custom Duties:
JCDB - IN Basic Customs
JCV3- IN CVD – Inventory
Maintain all the Custom Duties JECI- IN ECSin PO – Line item – condition CVD:Inventory
NOTE
tab For External Vendors and J1CI- IN HECS-CVD:
also Inter Company purchases Inventory
JEDB- IN ECS on
Custs.Duty
JSDB- IN SH ECS on
BCD
JADI- IN Ad Duty
Cus:Inven
Goods Receipt (Do not
4
PO No. / Qty
capture Excise Invoice)
Material Doc # (GR),
Capture Excise Invoice for
5
Excise Group, Excise Inv
Depot
# / Dt.
10
Procedure for CENVAT Reversals
18
T.Code Role
Purchaser /
J1ID
Buyer / Excise
Personnel
Purchaser /
FV11 Buyer / Excise
Personnel
ME21N
Purchaser /
Buyer
ME21N
Purchaser /
Buyer
MIGO Stores
J1IG
Excise
Personnel
Cenvat reversals due to:
1.
2.
3.
4.
Return delivery.
Cancellation of Material Document.
Purchase Order Returns.
CENVAT Adjustments.
10.1
Return Delivery (mvt type: 122)
Step Description
Goods Receipt (Return
1
Delivery / Material
Document)
Inputs
T.Code Role
GR Material Doc No. / Qty /
Reason for mvt. Typ.
MIGO Stores
2
Create Excise Invoice
Ref Doc Type: MATD / Rej Mat
Doc No. / Series Grp. / Excise J1IS
Grp
Excise
Personnel
3
Print Excise Invoice
Ex Inv # / Year
Excise
Personnel
J1IV
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
(c) Document No. is the rejected GR No.
(d) Enter Document year, Series Group and Excise Group.
19
(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 having 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 are no longer entitled to the
CENVAT credit.
In the SAP System, therefore, have to reverse CENVAT posting correspondingly.
Process Flow:
Step Description
Cancellation / Material
1
Document
Inputs
GR Material Doc No. / Qty /
mvt type: 102
2
Post Excise Invoice
Vendor Excise Invoice
3
Cancel Excise Invoice (if
required)
Vendor Excise Invoice
T.Code Role
MIGO Stores
Excise
Personnel
Excise
J1IEX
Personnel
J1IEX
1. Reverse the goods receipt:
1.
2.
3.
4.
5.
-
Go to Transaction Code - MIGO and select: Cancellation and Material Document
Enter the number of the goods receipt that is to be cancelled
Choose the line item and Flag the line items as OK
Save the reversal document
The system:
Creates a reversal document to cancel the goods receipt.
20
Creates additional entries in Part I of the appropriate excise register to reverse the
original entries.
-
Changes the excise invoice document status to In process.
2. Reverse the CENVAT posting on the excise invoice:
1.
2.
3.
4.
5.
6. Go to Transaction Code - J1IEX.
Select : Post CENVAT and Vendor Excise Invoice
Enter the Vendors Excise Invoice Number.
Choose Simulate.
A dialog box appears, showing which postings the system will make to reverse
the CENVAT.
6. Choose Post CENVAT.
- The System :
-
Creates an accounting document to reverse the CENVAT postings
-
Creates a corresponding entry in Part II of the appropriate excise register
3. If plant does not allow multiple goods receipts per excise invoice, must also
cancel the excise invoice:
The system changes the excise invoice status to Canceled.
If, however, do allow multiple goods receipts per excise invoice, do not have to
cancel it.
can leave the excise invoice as it stands. Then, if another delivery of goods is received
for this excise invoice, enter the excise invoice number when goods receipt is posted .
1.
2.
3.
4.
Go to Transaction Code - J1IEX.
Select : CANCEL and Vendor Excise Invoice
Enter Vendor Excise Invoice.
Save the Excise Invoice.
21
10.3
Purchase Order Returns
Process Flow :
Step Description
T.Code Role
1
Inputs
Doc Type: ZRTN / Vendor /
Create Purchase Order
Material / Qty / Plant / Price /
with Returns Indicator.
Tax Code
Create Outbound Delivery Purchase Order #, Select the
w.r.t Purchase Order
proper variant.
Do PGI with proper Reason for
Post goods Issues
MvT
ME21N
4
Create Excise Invoice
Goods Issue Mat Doc #
J1IS
5
Print Excise Invoice
Excise Invoice #, Output Type :
JREC
J1IV
2
3
10.4
Purchaser /
Buyer
VL10B Stores
VL02N Stores
Excise
Personnel
Excise
Personnel
CENVAT Adjustment Postings (J1IH – Excise JV)
Use: - use these functions to make an adjustment posting to any of CENVAT accounts.
10.4.1
Making Adjustment Postings for Scrap
Use: - follow this procedure if scrapped a material and want to reverse the excise duty
debited to CENVAT account.
10.4.2 Making Adjustment Postings for Materials Not Used in
Production
Use: - follow this procedure if have not used a material in the production process and
want to reverse the excise duty debited to CENVAT account.
Procedure: 1. J1IH - Excise JV / Create / Matl write-off.
2. Enter data as required, including:
• Document number (This Document is of Movement Type – 551 i.e. GI for Scrap)
22
• 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 can change Debit A/c as per
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: - follow this procedure if a vendor has increased the amount of excise duty that it
originally charged want to debit the difference to 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 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:
• 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.
23
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: - follow this procedure to make an adjustment posting when transfer money to
personal ledger account (PLA).
Prerequisites: - have already transferred the money to 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.Can enter either the challan
number OR the number of the accounting document (This document is to be first
created through T. Code – FB50. 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 entered the accounting document number, the system
displays the information from it.
4. Enter the amounts against the accounts that is required.
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: - 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.
2. Enter the number, year, and series group of the excise invoice that is to be cancelled.
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.
24
10.4.6
Making Adjustment Postings for Other Transactions
Use: - follow this procedure if want to make an adjustment posting that does not fall into
any of the other categories of adjustment offered by this function. External document
can be used as 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 is to reffered 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 different materials 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 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
Use: -make an adjustment posting; follow this procedure if want to specify the original
excise invoice associated with a line item.
Procedure: -
25
1. Select the line item and choose Get excise invoice. The system displays a list of all
the excise invoices that have to be posted for this vendor for this particular material.
2. Select the excise invoice 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. Then overwrite these amounts, 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 make an adjustment posting, 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 is entered on the selection screen.
2. Add another account, 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 CENVAT accounts, choose Balances. The system
displays the balances only of the CENVAT accounts that are affected by G/L postings.
26
11
Subcontract Challan
11.1
Normal Subcontract Process
Step Description
1
2
3
4
5
6
7
8
9
Inputs
T.Code Role
Document type(NB) / Pur.org ./
Pur.group / Co.code / Material /
Create Subcontract Purchase Qty. / Price / Plant / Requister /
Purchaser
ME21N
Order
Delivery date / Vendor no ./
/ Buyer
Tax code / Item catgory(L) /
Components
Create transfer Posting of
materials sent out for subSelect the material, and do PGI
ME2O Stores
contracting with reference to or create Delivery.
Subcontractor PO.
Materail doc / Fiscal year /
Excise
Create Subcontracting challan
J1IF01
Excise group / Series group
Personnel
Go to transaction of Challan
Excise
Print Subcontract Challan
J1IF11
Change – Take print and save.
Personnel
PO NO./Delivery Note/Posting
date/Excise Invioce Tab -Refer
MIGO Stores
Post goods receipt (MIGO)
subcontracting challan /storage
location
Excise
Reconcile Subcontracting
Material
J1IFQ
Personnel
challan
Document/Challan/Fiscal year
Excise
List of subcontracting challans List click on Anexure IV
J1IFR
Personnel
Complete/Reverse/Recredit
Excise
Complete the challan
J1IF13
Subcontracting challan
Personnel
Excise
Display Subcontracting challan Display Subcontracting challan J1IF12
Personnel
Process:
1 Create Subcontract Purchase Order :
Header
Material
SubComponent
2 Transfer Posting of Sub-components to Vendor: (ME2O)
Select the Line Item and Create Delivery or Post Goods Issue
27
3 Create Subcontract Challan w.r.t the Transferred Material Document:
(J1IF01)
4
Print of Subcontract Challan (J1IF11)
5 Goods Receipt: (MIGO)
Select – Refer Subcontracting Challan, and in the sub-window, specify the correct
Challan No‘
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.
6 Post Goods Receipt.
7 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:
8 Challan Reconcillation: (J1IFQ)
If the Challan No‘ specified during GR, is wrong, then delete the challan Assignment,
select the function here.
Select this icon, to bring in the Qty from Material Doc, to Assigned Qty in Challan.
Save the Challan.
9 Completion of Challan: (J1IF13)
Save the Challan.
10 List of Subcontracting Challans.
28
11.2 Subcontract Process where Scrap is received from
Vendor
Step Description
1
Create Subcontract Purchase
Order
2
Create transfer Posting of
materials sent out for subcontracting with reference to
Subcontractor PO.
3
Create Subcontracting challan
4
5
6
7
Inputs
T.Code Role
Document type(NB) /
Pur.org ./ Pur.group /
Co.code / Material / Qty. /
Purchaser
Price / Plant / Requister /
ME21N
/ Buyer
Delivery date / Vendor no ./
Tax code / Item catgory(L)
/ Components
Select the material, and do
ME2O
PGI or create Delivery.
Materail doc / Fiscal year /
J1IF01
Excise group / Series group
Go to transaction of
Print Subcontract Challan
Challan Change – Take
J1IF11
print and save.
PO NO./Delivery
Note/Posting date/Excise
Post goods receipt (MIGO)
Invioce Tab -Refer
MIGO
subcontracting challan
/storage location
Receive scrap material from
Receipt of Scrap Material MB1B /
Vendor.
by MvT – 542.
MIGO
Material Document (MvT –
Reconcile Subcontracting challan 101/542) / Challan / Fiscal J1IFQ
year
8
List of subcontracting challans
List click on Anexure IV
9
Complete/Reverse/Recredit
Subcontracting challan
Complete the challan
10
Display Subcontracting challan
11
Scrapping the Material
Display Subcontracting
challan
Whatever the material
received from Vendor as
scrap, is to be scrapped
with MvT – 551 to a cost
center.
29
Stores
Excise
Personnel
Excise
Personnel
Stores
Stores
Excise
Personnel
Excise
Personnel
Excise
J1IF13
Personnel
Excise
J1IF12
Personnel
J1IFR
MB1A /
Stores
MIGO
11.3
Subcontract Process: Return Delivery To Vendor
Step Description
T.Code Role
1
ME21N
2
3
4
5
6
7
8
9
10
11
Inputs
Document type(NB) /
Pur.org ./ Pur.group /
Co.code / Material / Qty. /
Create Subcontract Purchase Order Price / Plant / Requister /
Delivery date / Vendor no
./ Tax code / Item
catgory(L) / Components
Select the material, and
Transfer Posting of sub-component
do PGI or create
material to Vendor.
Delivery.
Materail doc / Fiscal year
Create Subcontracting challan
/ Excise group / Series
group
Go to transaction of
Print Subcontract Challan
Challan Change – Take
print and save.
PO NO./Delivery
Note/Posting date/Excise
Post goods receipt (MIGO)
Invioce Tab -Refer
subcontracting challan
/storage location
Do the reconcilation of material
Material document
document
/challan number/year
If the recived material fails in quality 122 and 544 movement
& need to send back to Vendor type /plant / material
return delivery
docuemt number /
Create new subcontracting challans
for this outgoing materials, as this
Material documents
material had come against old
number / excise group/
challan, and that challan is already series group
reconcilled.
Complete/Reverse/Recredit First
Complete the challan
Subcontracting challan
101 and 543 movement
Recive back the return delivery
type/ challan number/
materialsent by vendor
year
Again Reconcile & complete the
Material document/
return delivery challan.
challan no./fiscal year
30
Purchaser
/ Buyer
ME2O Stores
J1IF01
Excise
Personnel
J1IF11
Excise
Personnel
MIGO Stores
J1IFQ
Excise
Personnel
MIGO Stores
J1IF01
Excise
Personnel
J1IF13
Excise
Personnel
MIGO Stores
J1IFQ
Excise
personnel
11.4
Subcontract Process: Cancellation of Goods Receipt
Step Description
1
2
3
4
5
6
7
8
9
10
11
12
Inputs
PO with sub
Create Subcontract Purchase Order
components.
Create transfer Posting of materials
Select the material,
sent out for sub-contracting with
and do PGI or create
reference to Subcontractor PO.
Delivery.
Materail doc / Fiscal
Create Subcontracting challan
year / Excise group /
Series group
Go to transaction of
Print Subcontract Challan
Challan Change –
Take print and save.
PO NO./Delivery
Note/Posting
date/Excise Invoice
Post goods receipt (MIGO)
Tab -Refer
subcontracting
challan /storage
location
Do the reconciliation of material
Material document
document
/challan number/year
Cancellation /material
If the received material is not with good document/102 and
544 movement type
quality & Goods Receipt needs to be
/plant / material
cancelled.
document number /
Create new subcontracting challans for
this outgoing materials (as this is
Material documents
cancelled/rejected), as this material had number / excise
come against old challan, and that
group/ series group
challan is already reconciled.
Complete/Reverse/Recredit First
Complete the challan
Subcontracting challan
Receive back the cancelled delivery
101 and 543
material sent by vendor against new
movement type/
challan.
challan number/ year
Material document/
Reconcile the challan
challan no./fiscal year
Complete the cahllan
Challan number/fiscal
31
T.Code Role
Purchaser
ME21N
/ Buyer
ME2O Stores
J1IF01
Excise
Personnel
J1IF11
Excise
Personnel
MIGO Stores
J1ifQ
Excise
Personnel
MIGO Stores
J1IF01
Excise
Personnel
J1IF13
Excise
Personnel
MIGO Stores
Excise
personnel
J1if13 Excise
J1IFQ
year
personal
11.5 Subcontracting over consumption or under
consumption
Step Description
Create Subcontract Purchase
1
Order
Create transfer Posting of
materials sent out for sub2
contracting with reference to
Subcontractor PO.
3
4
5
6
7
8
9
10
11
12
12
13
Inputs
T.Code Role
Purchaser
PO with sub components. ME21N
/ Buyer
Select the material, and do
ME2O Stores
PGI or create Delivery.
Material doc / Fiscal year /
Excise group / Series
group
Go to transaction of
Print Subcontract Challan
Challan Change – Take
print and save.
PO NO./Delivery
Note/Posting date/Excise
Post goods receipt (MIGO)
Invoice Tab -Refer
subcontracting challan
/storage location
Do the reconciliation of material
Material document /challan
document
number/year
If the material is over
Subsequent adjustment /
consumption do subsequent
purchase order / 121and
adjustment
543 movement type/ Qty
Do the reconciliation with this Doc Material document/challan
#.
no.
Complete/Reverse/Recredit First
Complete the challan
Subcontracting challan
If the material is under
544 movement type will
consumption do subsequent
get triggered/purchase
adjustment.
order number
Create new challan w.r.t the 544 Create new challan w.r.t
MvT Document.
the 544 MvT Document.
Post goods receipt (MIGO)
MIGO – Goods Receipt
Material document/ challan
Reconcile the challan
no./fiscal year
Create Subcontracting challan
Complete the challan
J1IF01
Excise
Personnel
J1IF11
Excise
Personnel
MIGO Stores
J1IFQ
Excise
Personnel
MIGO Stores
Excise
personnel
Excise
J1IF13
Personnel
J1IFQ
MIGO Stores
J1IF01
Excise
personnel
MIGO
Excise
personnel
Excise
Challan number/fiscal year J1IF13
personnel
32
J1IFQ
11.6 Challan completed 180 days reverse and recredit the
challan
Step Description
Inputs
1
Challan Reverse
Challan No./Fiscal year
2
Option I: Receive the material
back.
3
Reconcile the challan with 542
Matrl. Doc.
542 movement type/
material/ vendor
Material doc / Fiscal year /
challan no/Excise group /
Series group
4
5
Complete & Recredit the
challan.
Option II: Receive the Material
after 180 days as finished
goods as per PO.
T.Code Role
Excise
J1IF13
Personnel
MIGO Stores
J1IFQ
Challan number /fiscal year J1IF13
MIGO – Goods Receipt
MIGO
Materail doc / Fiscal year /
challan no/Excise group /
Series group
J1IFQ
6
Reconcile the challan with
above GR Doc.
7
Complete& recredit the challan. Challan number /fiscal year J1IF13
12
Excise
Personnel
Excise
Personnel
Excise
Personnel
Excise
Personnel
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 doesn’t 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.
33
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
( PO – Condition tab), wherein it will update the Tax Procedure.
34