Hi

CIN in other words "Country Version India" is basically used for taxation purposes. Every country has its
own tax system..........so SAP has come up with its own country versions for taxation like CIN for India.
The following is the detailed notes on CIN:
Basically Cin is divided in to two types:
1. TAXINJ - Is a Routine Based that is used in the condition types. it will work on the logic whatever is
there in the Routine.
2. TAXINN: - Is a condition Record based. Means we have to create condition records for each and every
condition type that you are going to use in the Pricing Procedure.
Since Version 4.7 this TAXINN came into picture and start using this.
And one of the important point is since 4.6 c CIN comes a separate package. But after introduction of 4.7
Version, CIN is coming the SAP Package itself and even in the Customer Master Record also we will find
the CIN Icon.
Basically 4 types of Pricing Procedures are used in CIN and are as follows:
1.JDEPOT - Depot Sales
2.JEXPOR - Export Sales
3.JFACT - Factory Sales
4.JSTKTR - Stock Transfer
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
Use
In this IMG activity, you maintain the data relating to your excise registrations.
Activities
enter each of your excise registrations, specifying a four-character code for each
Excise Registration IDs
In this activity, you maintain excise registration IDs. You create one ID for each of your business's excise
registrations.
Activities
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
Maintain Registration ID NUMBER, Excise code number, excise registration 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.
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.
Indicator for confirming AED usage
Additional Excise duty Percentage. These are leviable under the additional duties of excise act. These
duties are in addition to basic excise duty and special excise duty.
Example
Additional Excise duty is leviable in case of textile products, tobacco and sugar.
Similarly for SED CESS
Number of Items in Excise Invoice
Shows the maximum number of line items that the authorities allow per excise invoice.
Dependencies
This information is used when you create an excise invoice in Sales and Distribution (SD) for factory sales
and for other movements.
This information is used to split the transfer postings' items into multiple subcontracting challans.
Excise register set description
Description of the excise registers set.
Partial CENVAT Credit
Indicates that the excise registration ID is allowed to credit only a portion of its input excise duty to its
CENVAT account.
Dependencies
When you post a goods receipt, the system splits the input excise duty on the material into its deductible
and nondeductible amounts. It posts the deductible duty to the appropriate CENVAT account, and adds
the nondeductible duty to the material value.
This information is also shown when you post the vendor's excise invoice.
Maintain Company Code Settings
Use
In this IMG activity, you maintain the data relating to your company codes.
Document Type for CENVAT Postings
It controls, which document type the system uses when making CENVAT postings in Financial
Accounting (FI). Here ED is document type for cenvat posting.

Indicator for providing debit account overwriting

Debit Account Overwrite Indicator. X - Indicates debit accounts can be overwritten. Use In excise journal
voucher transaction. It provides the flexibility to the user to enter the debit account of his choice
depending on the nature of transaction.
Automatic balance Indicator
Excise year start month
The calendar month marking the beginning of the excise year
Use
this start month represents the month for the start of the excise invoice number range. The month 04 is
entered here indicating April of the calendar year as the start month for excise invoices. Any change by
the Excise authorities regarding start month should be taken care of by an entry in this field and
initialization.
Excise invoice selection procedure
Excise invoice selection type. To indicate the method opted by the company for selecting the excise
invoice. It can be either earliest or latest invoices that were received.
Number of excise invoices to be selected
indicates the number of excise invoices that needs to be selected in the excise invoice selection.
Days to be considered for excise invoice selection
Number of days from document date for excise invoice selection.
Example
If the value of this field is 20 and today is 28-03-97. The excise
invoice selection will show the related invoices only for the
period 08-03-97 to 28-03-97.
Document type for TDS FI posting
Financial accounting document type for TDS posting.
Document type for FI posting on Utilization
Financial accounting document type for TDS posting.
Indicator for item level excise duty round off
This indicator is to be used for deciding whether Item level excise duty amount rounding off is required
during procurement cycle. If marked 'X' then the excise duty amount will be rounded off to the nearest
rupee at the Purchase order level. This will not round off the CENVAT credit to be taken. If the duty
amount is less than one rupee then no rounding is done
Rounding off of Excise duty for outgoing excise invoice
You can round off the Excise amount to be paid during an outgoing Excise invoice by marking this
indicator as 'X'. The rounding is done at the item level for each item where the amount is greater than 1
Rupee.
Immediate Credit on Capital Goods
Instructs the system, when you verify a goods receipt for capital goods, to immediately post half of the
input excise duty to the appropriate CENVAT accounts.
The rest is posted the CENVAT on hold account, for use in the following year.
CVD Clearing Account
Specifies which G/L account the system credits when you take a CENVAT credit on countervailing duty in
the Incoming Excise Invoices transaction.

Exchange rate type

Key representing a type of exchange rate in the system.
Use
You enter the exchange rate type to store different exchange rates.
Example
You can use the exchange rate type to define a buying rate, selling rate, or average rate for translating
foreign currency amounts. You can use the average rate for the currency translation, and the bank buying
and selling rates for valuation of foreign currency amounts.
Exchange rate type to be used for Export excise duty converts
When you are creating an Excise invoice for export sales then the exchange rate for duty calculation will
be picked up using this Exchange rate type.
Maintain Plant Settings
Use
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.
Activities
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.
Depot
indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and
invoice generation.
Number of goods receipt per excise invoice.
Multiple GR for one excise invoice, Single credit
Multiple GR for one excise invoice, multiple credits
Maintain Excise Groups
Use
In this IMG activity, you define your excise groups. For each excise group, you can also control how
various excise invoice transactions will work.
Excise Groups
In this activity, you define excise groups. An excise group allows you to maintain a separate set of excise
registers and excise accounts. The RG 23A, RG 23C and PLA serial numbers are created for an excise
group.
Recommendation
Under normal circumstances, excise authorities require every business to maintain only one set of excise
registers and one set of accounts. But through exemption from the authorities, multiple books can be
maintained.
If your company has only one set of excise registers, then you need to maintain only one excise group.
Activities
1. Create one excise group for each set of registers that you need to keep.
1. Assign the excise groups to plants.
2. Maintain whether this Excise group is for a depot or not.

3. If you receive only one consignment for an Excise challan then you can leave GR's per EI as blank. If
you receive multiple GR's for a given Excise challan and would like to avail multiple credit mark the GRs
per EI as 'Multiple GR's for one excise invoice, multiple credit'. Alternatively if you want to avail the credit
only after all the goods receipts have been made mark it as ' Multiple GR for one excise invoice, single
credit'.
4. If you want to automatically create Excise invoice during Sales cycle at the time of billing the tick the
indicator 'Create EI'
5. During depot sales if you do not want to do RG23D selection and posting separately and would like to
complete RG23D selection in one step mark the indicator 'RG23D Auto post'. This will post the selected
records into RG23D automatically. You cannot cancel the selection later.
6. If the indicator 'Default GR qty' is marked system will default the Excise challan quantity on to the
Goods receipt if the Excise invoice number is given in the pop-up.
7. If the indicator 'Folio no creates' is marked system will generate Folio numbers for RG23D during
receipt of excise invoice into depot.
8. 'Automatic posting' when ticked will post the Excise invoice other movements automatically along with
creation in single step.
9. 'Create Part1 for Block Stock' when marked will create a Part1 during the receipt of material into
Blocked stock.
10. 'Create Part1 for STO' when marked will create a Part1 during the receipt of material through inter
plant transfers.
11. 'Create Part1 for consumption stock' when marked will create a Part1 during the receipt of material
into consumption stock.
Excise Group
Governs which set of excise registers a business transaction will be included in.
Following is the relation between excise group, plant and registration.
Dependencies
In define excise groups in Customizing.
Then, in transactions involving excise duty, for example, when you post a vendor's excise invoice, you
specify which excise group you are using. This information tells the system which G/L accounts to post
the excise to.
At the end of the period, when you come to prepare your excise registers, you create different sets for
each excise group.
Indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and
invoice generation.
GR Per Excise Invoice
Multiple GR for one excise invoice , Multiple credit
Multiple GR for one excise invoice , Single Credit
Create Excise Invoice Automatically
Instructs the system to automatically create a Sales and Distribution (SD) excise invoice immediately you
create a commercial invoice or a pro forma invoice.
The excise invoice is created in the background.
Dependencies
If you want to make use of this function, you must also define the default plant, excise group, and series
groups in Customizing for Sales and Distribution (SD), by choosing Excise Group - Series Group
Determination.

RG23D Sales Creation and posting option

RG23D Automatic Option if selected will create Depot excise invoice by posting the selection of excise
invoices in single step.
If this is not selected then you need to separately do RG23D selection followed by PGI and then RG23D
verification and posting.
If you need automatic posting of RG23D selection then the Post Goods Issue should have been
completed before running RG23D selection.
Default excise qty in GR
If this indicator is ticked then while doing Goods Receipt using 'MB01' system will default the excise
invoice quantity on to the Goods receipt document.

Folio number for depo

Posting
If this indicator is marked then while creating Excise invoice for other movements system automatically
does the Verify and Post. You need not separately Post the excise invoice
Also we can set indicator for creation of part 1 for:
Blocked stock
Stock transport order
Consignment stock
Maintain Series Groups
Use
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.
Activities
Define excise series groups based on type of outgoing document
Assign series group to excise registration ID
If no financial postings are required for an Excise invoice in this seris group then you tick the 'No
utilization' indicator.
If the CENVAT has to be paid immediately and you need not wait for the Fort nightly payment then mark
the 'Immediate Utilization' indicator.
Example
You could define two series groups, group 001 for excise invoices, and group 002 for 57 F4 documents.
No account postings for CENVAT in sales cycle
No utilization Flag
If you do not need any CENVAT utilization for an excise invoice but would like to just generate an excise
invoice then you need to mark this indicator.
IF the flag is checked then system will create an Excise invoice in the given Series group but there will not
be any account postings or Part2 postings.
Immediate Utilization of CENVAT
Specifies that when you create an excise invoice, the system immediately pays the amount from CENVAT
and creates the Part II entry. Such invoices will not be listed for fortnightly utilization.
If you have both fortnightly and immediate utilization for the same excise group, the account
determination within CIN IMG should point to the ED interim account.
Account determination for immediate payment will be done exactly the same as being done for fortnightly
utilization program.
Maintain Excise Duty Indicators
Use

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
Use
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. Note that once
you have started using a tax procedure, you cannot switch to another one, otherwise you will not be able
to display old documents.
Maintain Excise Defaults
Use
In this IMG activity, you define which tax procedure and pricing condition types are used in calculating
excise taxes using formula-based excise determination.
Activities
If you use condition-based excise determination, fill out the CVD cond. field and leave all the others blank.
If you use formula-based excise determination, fill out all of the fields as follows:
Enter the tax procedure and the pricing conditions that are relevant for excise tax processing.
Specify the purchasing and sales conditions types used for basic excise duty, additional excise duty,
special excise duty, and cess.
Specify the conditions in the sales order that are used for excise rates.
Specify the countervailing duty condition type used for import purchase orders.
See also
SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materials Management (MM) ->
Condition-Based Excise Determination and -> Formula-Based Excise Determination.
IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise
Duty >
Condition-Based Excise Determination
Use
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 conditionbased 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.
Activities
Customizing
Make for Logistics General, byIndia the settings in Customizing Basic Excise Duties
Usingchoosing Taxes on Goods Movements Account Settings
Determination.Condition Technique and
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.
Formula-Based Excise Determination
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 access from the SAP EasyMaintenance screen,
which you can Master DataAccess screen by choosing Indirect Taxes 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:
1. 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.

2. Looks up the plant master data to see what status you have assigned the plant.
Similarly, your plant has status 2.
3. 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.
4. The system determines the chapter ID of the ball bearing for the plant.
Lets assume the chapter ID at plant for the ball bearings is 1000.01.
5. 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.
Define Tax Code for Purchasing Documents
Use : In this IMG activity, you define a tax code for the purposes of calculating excise duty when you
enter purchasing documents.
Only carry out this activity if you use condition-based excise determination.
Activities: Create a new tax code, and set the tax code type to V (input tax). Do not make any other
settings for it.
Assign Tax Code to Company Codes
Use
In this IMG activity, assign the tax code for purchasing documents to the company codes where it will be
used.
Only carry out this activity if you use condition-based excise determination.
Classify Condition Types
Use
In this IMG activity, you specify which condition types you use for which sort of tax. Note that this only
applies to condition types that you use with the new excise determination method.
The system uses this information when you create a document from another one. For example, when you
enter an incoming excise invoice from a purchase order, or when you create an outgoing excise invoice
from a sales order, the system determines the various excise duties in the excise invoice using the
information that you have entered here.
In addition, when you create a purchasing document, the system only uses the condition types that you
enter here.
For taxes on purchases, use the condition types contained in the tax procedure.
For taxes on sales, use the condition types contained in the pricing procedures.
Standard settings
The standard system comes with sample settings for the tax calculation procedures and pricing
procedures.
Use these settings as a basis for your own.
IMG > Logistics - General > Tax On Goods Movement > India > Account Determination
Define G/L Accounts for Taxes
Use
In this IMG activity, you specify which G/L accounts you will use to record which taxes.
Requirements
You have set up G/L accounts for each of the processing keys listed below.
Activities
Assign an account to each of the following posting keys. The accounts for VS1, VS2, and VS3 are used
as clearing accounts during excise invoice verification.
VS1 (basic excise duty)
VS2 (additional excise duty)
VS3 (special excise duty)
VS5 (sales tax setoff)
MWS (central sales tax)
MW3 (local sales tax)
ESA (service tax)
ESE (service tax expense)

Specify Excise Accounts per Excise Transaction

Use
In this IMG activity, you specify which excise accounts (for excise duty and CENVAT) are to be posted to
for the various transaction types. Enter all the accounts that are affected by each transaction type.
If you use subtransaction types, enter the accounts for each subtransaction type as well.
Activities
Transaction type UTLZ is used for determining accounts only while posting excise JVs and also if the
payment of excise duty has to be done fortnightly.
The fortnightly CENVAT payment utility picks up the credit side accounts from the transaction types of
GRPO, EWPO, and TR6C for determining the CENVAT and PLA accounts. There is no separate
transaction type for fortnightly payment.
Example
Excise TT DC ind Account name
GRPO CR CENVAT clearing account
GRPO CR RG 23 BED account
GRPO DR CENVAT on hld account

Specify G/L Accounts per Excise Transaction

Use
In this IMG activity, you assign the excise and CENVAT accounts to G/L accounts.
When you come to execute the various transactions, the system determines which G/L accounts to post
to by looking at the:
Excise group
Company code
Chart of accounts
Furthermore, if you want separate account determination settings within an excise group, you can also
use sub transaction types.
Requirements
You have already:
Defined the G/L accounts
Defined the excise groups
Maintained the transaction accounts
Activities
For each excise group, assign the excise and CENVAT accounts to G/L accounts. For most businesses,
one set of accounts will suffice for alltransactions.
Note
You need not remit the CENVAT to the excise department immediately, so maintain the credit account for
transaction type DLFC as an excise duty interim account. This will be set off when you remit the duty.
Config setting needed to be done in order to get the Excise Details Screen in Material Master.
Even though this functionality is available in enterprise version, a small config step has to be made in
Screen Sequences for Material Master.
Following document helps you to do this configuration.
Data 1. Go to IMG Define Structure ofLogistics General forMaterial Master
Configuring the Material master Screen Sequence.Screen each
2. Select your screen sequence. Usually it would be 21. Select the same and click on Data Screen in the
left frame.
3. Once the data screens are exhibited, select data screen no. 15, ie. SSq. 21and Scrn 15, which is
Foreign Trade: Import Data. Select the same and click on Subscreens in the left frame.
4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select the same. Click on tab view
subscreen and ensure that the subscreen is blank.

5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 0001 and instead add
SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.
6. Save the setting.
7. Create a Material Master and check whether in Screen Foreign Trade Import, Excise related
subscreen appears.

MASTER MAINTENANACE.:
Transaction Code : J1ID
1. Chapter id Description Master : - Excise chapter id and description as per law will be maintained in
this master. With out maintaining the chapter id in this master we can not proceed to other masters.
Maintain the chapter id in format xxxx.xx
2. Material / Chapter id combination :- Excisable materials with chapter id details for a plant is maintained
in this master. In case of Raw and Packaging materials we will be maintaining for branch plant only. But
in case of FG even CPs details will be maintained. If the material is a base material used for
subcontracting then give a tick in the check box in the coloumn subcontrs. Choose relevant material
type from drop down menu. In the coloumn GR-xref, select Multiple GR for one Excise invoice-Multiple
credit from the drop down menu. Enter 1 in the declared coloumn. With out this value in this coloumn the
material will not be subjected to excise procedures.
3. Material assessable Value:- In this master, plant wise (including CP plants) assessable values for FG
are to be maintained. MRP per CBB and per ATC will be entered in Net dealer price coloumn. Assessable
value per CBB and per ATC will be given in Assessable value coloumn with effective date in the valid
from coloumn. Since it is not possible to maintain differential MRP for the same SKU in this master, the
MRP and Assessable value details for dispatches from branch plant will be maintained in SD module. In
this case we should not maintain the details in this master for branch SKUs and details will be maintained
only for CPs.
4. CENVAT determination :- Plant wise MODVAT input materials will be listed in this master with one of
the FG as the out put material. This master will be maintained for branch plants only. If the input material
is not maintained in this master MODVAT credit can not be availed.
5. Vendor Excise details: - Vendor Excise details such as ECC no, reg no, Exc.range, Exc.div, Exc.coll,
CST, LST nos, PAN no will be maintained for all Excisable materials vendors. In the coloumn Exc.ind.ve
enter 1. With out this value in this coloumn the MODVAT procedure will not take place. We are not
maintaining SSI status in this master.

6. Customer Excise details:- For such of those customers for whom invoices are to be raised from branch
plant details are to be maintained in this master. The excise details can be blank for customers bur CST
and LST no are to be entered. In the coloumn Exc.Ind.Cus. Enter 1. With out this value in this coloumn,
Excise invoice will not be generated for the customer.
7. SSI rate: - We will not be maintaining this master. At the time of capturing the MODVAT details we can
enter actual duty details as per the Excise invoice received from the Vendor.
8. Excise indicator for Plant:- Excise details such as ECC no, Range etc. for the branch plant will be
maintained here. In the coloumn Exc.ind.co maintain a value1
9. Excise indicator for plant and vendor and Excise indicator for plant and customer: - Initial Configuration
masters need not be maintained by users.

10. Excise tax rate: - Chapter id and tax rates combination is maintained in this master. In the ExcInd
coloumn enter1.

11. Cess rate:- Cess rate if applicable will be maintained in this master.
12. Exceptional material excise rates:- If differential excise rates are applicable for a material falling under
same chapter id , this master will be maintained.
13. Quantity based AED & SED: - If applicable the details will be maintained here.
Some of the check points pertaining to Masters.
For raw materials, the assessable value will be picked up from PO.
For FG, the assessable values only for CPs are to be maintained in this master.
Excise indicator in Vendor / Customer excise details is mandatory.
Chapter ID, material Chapter ID and Excise tax rates - should contain all the relevant tax details.
CENVAT determination correlates the raw material to finished goods. All new materials are to be added
without fail.
Material Chapter ID - for conversion activity (only base matl.) sub-contracting indicator has to be
checked.
Material Chapter ID- excise indicator is to be ticked.
For removals from branch plant (raw material/finished goods), CST/LST numbers have to be given in
the customer masters, which is used in Excise invoice printing
Path is : IMG - Logistics General - Tax on goods movement - India

CENVAT Utilization
created by pankaj labhasetwar on Sep 9, 2013 11:26 AM, last modified by pankaj labhasetwar on
Sep 30, 2013 10:33 AM
Version 3
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In India, an excise tax is levied on the manufacture of goods when those goods leave the place of
manufacturer and sold within the country. Formerly called the Central Excise Duty, this tax is
now known as the Central Value Added Tax (CENVAT).
As a manufacturer of goods, company has to purchase raw material while purchase of such raw
materials company need to pay excise duties on such materials further these materials get used
for manufacturing of finish goods which then sold to customer with excise duty.The companies
can set off input tax against output tax by paying balance to tax authorities.

Here I am putting some light on how to follow the process of CENVAT Utilization.

This is monthly activity and carried once in a month.

You can have the utilization according to plant and excise group which depends on how many
plants and excise groups you have.Excise group and plant is assigned to each other, same excise
group can be assigned to more than one plant.Give the inputs as I shown in the above screen shot
and then execute.

In the upper section of above screenshot you can see payable amounts of BED,ECS and SECS,
this payable amount you need to utilize as these are payable.
Available balance refers to the total balance of the particular account.Utilized refers to the
amount which we need to utilize for the selected period.Remaining balance refers to amount
which is remained after and before utilization.

Overview
The trigger for this transaction is the requirement to pay the TR6 Challan
Business Process Overview
TR6 Challan Payment Process
Input - Required

Output /Results

Fields Field Value / Comments

Comments

Excise Process
TR6 Challan Creation
PROCEDURAL STEPS
General Ledger Document Creation (FB50)

System does not update the PLA Register with the above entry. When you update the TR6
Challan updating process, the system will update the PLA Register and PLA Account and
reverse the PLA on Hold Account.
Invoice to Tax Authority (FB60/F-43)

In this activity, you debit the PLA Interim Clearing Account so that the same is nullified and
credit the Tax Authority for the payment of PLA.

Payment to Tax Authority (F-58)

In this activity, the Cheque has been issued to the Tax Authorities/Bank.
TR6 Challan Posting
India Localization Menu
Transaction Code

Indirect Taxes Excise JV Create

J1IH

On Excise JV Main Menu, select the TR6 Challan Tab. Once you click on the TR6 Challan.

You have to enter the GL Document created in the 1st step, Document Year, Company Code,
Plant and Excise Group for which the PLA Payment is being made.
Press Enter.

You can observe that the PLA on Hold Account is getting credited which was 1st debited in the
GL Account Document creation.Enter the PLA BED, PLA EduCess & PLA SHECess amounts
to debit the same.

After filling the required amounts post the document. Once you save the document, the following
line will appear at the bottom of the sap screen.

You can view the same by clicking on the > Main Menu > Excise JV > Display and fill the
following:

Click on the Accounting Document Tab:

The Result of the above document is: The PLA on Hold Account has been nullified & PLA
BED, PLA EduCess & PLA SHECess has been debited.
PROCESS TITLE: CENVAT Utilization
Process Overview
The trigger for this transaction is the requirement of CENVAT Utilization. It is used to calculate
how much Excise Duty you must remit to the authorities. Legislation requires you to remit
excise duty monthly. Companies are allowed 5 days to remit excise duty except for the Month of March
Once the report has determined how much you have to pay, it allows you to specify where
money should be paid from i.e. whether it should be deducted from the CENVAT credits that
you have accumulated in RG23A Register or RG23C Register, or whether it should be deducted
from the Personal Ledger Account (PLA). You have the option of selecting the appropriation
amounts as required.
Prerequisites: User must be assigned to the Country India Specific Menu i.e. J1ILN. Excise
Invoices must be posted in the System to arrive the CENVAT Payable for deliveries made from
the Factory. The CENVAT Payable amount should be credited to a Clearing Account as a
Liability. At the time of Utilization of CENVAT, the system will post the Debit entry to the
same account based on the Account assignments in the Customization.

Utilization of CENVAT (J2IUN)

In the above screen, you have to input the following: Sub Transaction Type

ADC Sub Transaction Type

Excise Invoice Selection

Period: It is the period of all the Excise Invoices for which you are running a Utilization
Entry.
Excise Invoice: You can restrict the selection of Invoices here by selecting them in Exclude
Single Invoice or Invoice Range.

Business Area: This is below the Plant Level. Note: There is no multiple Business Area
selection in this field & the filling of Business Area is compulsory otherwise the GL Entry is
not possible.
Display Last Utilization Date Tab: It shows you when the last Utilization was made. The
next utilization can be done only if you put a date which is next to the last Utilized Date.
Display Pending Invoices: It shows the pending invoice to be selected in this Utilization
Run.(Including the Invoices given in the Excise Invoice Selection Restriction Field - Excise
Invoice)
Once you have input all the Necessary Fields, you will see the following screen:

Now select the Duty which you want to adjust against the available credit, and select on
select duty view button, you can view the concerned Duty Credit Available in related Excise
Registers as well asthe Amount available in PLA for the same will appear as shown below:
In the above, screen the Registers Balance in RG23A BED is available so you can utilize it
for thepayment of Excise Duty otherwise you have to use the balance available in PLA
Register also.Youhave to utilize it as follows:

After selecting the ECS Duty, click on the

Balances Availability, the following screen appears:

button to view the concerned

Enter the Duty as applicable.

After selecting the ECS Duty, click on the

button to view the
concernedBalances Availability, the following screen appears:

Click on
the following screen appears where you can check the accuracy of
the Accounts and then post the same.

Once you save the above entry, the following message appears at the bottom of
the SAP Screen.

You can view the Accounting Document through FB03.

In the above document, one can observe that the CENVAT Credit/Availed Accounts have been
credited and the CENVAT Payable Accounts have been debited.

You can see in account name column RG23A, RG23C etc it depends on your need from where
you want to utilize.whereas RG23A is for raw material purchase, RG23C is for capital goods.In
this document I have shown this process from RG23A.
Apart from above there are many cases where you need do some CENVAT Adjustment
Posting for following purposes.
1) For Scrap: You follow this process if you have scrapped a material and want reverse the
excise duty debited to your CENVAT account.
Go to J1IH :

Enter required data and select modvat/ cenvat account selection.

2) Material that you have not used in production.

You follow this process if you have not used material in the production and want to
reverse the excise duty debited to your CENVAT account.
Go to J1IH:
Click on Matl non-prod
Follow the same process as mentioned in first step.
3) Additional excise paid by vendor.
you follow this process for if vendor has increased the amount of excise duty that it originally
charged you and you want to debit the difference to your CENVAT account.
Go to J1IH:
Click on Additional excise
Follow the same process as mentioned above.
4) Money that you have transferred to your Personal Ledger Account.
You follow this procedure to make an adjustment posting when you transfer money to PLA.
Go to J1IH:
Click on TR6 Challan
Follow the same process as above mentioned.
5) Other Adjustment.
You follow this process if you want to make an adjustment posting that does not fall into any of
the other categories of adjustment offered by this function.
Go to J1IH:
Click on Other Adj
Follow the same process as mentioned above.

I hope this will give light idea to new comers about the process of CENVAT utilization.
1. How does CIN determine the tax rates?
CIN determines taxes based on the chapter-id of the material. There are 2 levels for rate determination.
First the system will check if there is an exceptional rate available. If this is available then that rate is
picked up. This rate could be for a material or material and customer combination. If there are no
exceptions then the system looks for chapter-id of that material. The customer will have an excise tax
status which along with the plant status will give a final excise status. Based on the excise status and the
chapter-id the rates are maintained.
2. Can I change the tax rates retrospectively?
You can change the excise rates with any given validity period. After making the changes you will have to
update the sales orders if the new tax rates have to be considered for future deliveries.
3. Can I have a different rate for incoming and outgoing transactions for the same material?
You can maintain exceptional rates for either incoming or outgoing based on the volume of exceptions
data.
4. What do I do if I have one chapter-id for incoming and another for outgoing and material code is the
same?
Along with exceptional rate maintenance you can maintain the chapter-id which should be used for the

outgoing transactions. This chapter-id will be used only for copying on to the document and will not be
used for rate determination.
5. Can I have some more additional rates?
You can maintain multiple excise indicators and based on that you can have additional rates.
6. What will happen if I have multiple rates with overlapping validity periods for the same chapter-id and
tax indicator?
While picking up the rate for a given transaction system will check for that validity period where the valid
from is the maximum but with in the pricing date and based on that pick up the rate applicable.
7. How does CIN do the pricing?
CIN uses R3 condition technique for pricing along with the pricing formulae. Details are available in the
CIN knowledge bank. Template pricing procedures are provided for various sales scenarios.
8. How many tax codes do I need?
The number of tax codes will directly depend on how you want to account the sales tax. You can have
CST and LST being determined by the same tax code if both can be accrued into the same account.
Instead if you need separate account determination then you need separate tax codes. Also based on the
tax concessions available you need to decide the various tax rates which need to be mapped.
9. How do I open up more than one tax classification?
CIN comes with default customization to open up the tax classification fields. The procedure is as follows.
You need to define as many condition types as the number of tax classification fields. The following
procedure could be used.
SPRO - Sales and distribution -Basic functions-Taxes - Tax
determination rules For Country 'IN' make entries as follows (This is pre customized in client 000
)
- Seq 1 - UTXJ
- Seq 2 - JTX1
- Seq 3 - JTX2
- Seq 4 - JTX3
In SPRO - Sales and Distribution - Basic functions - Taxes
Determine tax relevancy of master records
10. How do I handle concessional excise?
This is explained in SAP note 335577. Having opened up the new tax classification
fields you might have to do the following
o Customer taxes maintain the possible values for JTX3 . Each unique value should denote one
concession rate. For e.g., 1 - normal excise duty
o Maintain the JTX3 value against the form code in J1IT -Define Form
types
Maintain the customer tax classification in customer master if the customer has got
excise exemption
o Maintain the excise indicator in J1ID for the customer and form code and this indicator gives the final
indicator

o Forms database is used for determination of whether the form has arrived or not at the time of
billing.
o The tax classification value gets defaulted from the customer master in the sales order. This can be
changed in the header
billing data if required
11. How do I handle sales tax concessions?
o SPRO - Sales and distribution -Basic functions-Taxes - Tax determination rules For Country 'IN'
make entries as follows (This is pre customized in client 000 )
- Seq 1 - UTXJ
- Seq 2 - JTX1
- Seq 3 - JTX2
- Seq 4 - JTX3
o Taxes - Determine tax relevancy of master records - Customer taxes maintain the possible values for
JTX1 and JTX2. Each unique value should denote one concession rate. For e.g., 1 - 4% . Multiple
forms could correspond to a single rate. JTX1 could be used for CST and
JTX2 for LST. (UTXJ could
be freely used by the customers as earlier )
o Maintain the tax classification in customer master as well as
material master ( Sales org data 2)
Build access sequences based on these new fields to point to the correct sales tax code You might have
to have a new access based on region of delivering plant and region of ship to party
12. How will CIN handle Indian VAT?
SAP can handle normal VAT regulations. CIN will take a review of the VAT rule when it is implemented in
India and suggest the best business process to comply with the same.
13. When I create a new tax code the excise lines are grey and I cannot maintain any value. What should
I do?
This is happening because the Excise conditions for sales are statistical in the tax procedure for India. So
while creating a new tax code you need to open the tax procedure remove the statistical flag, maintain
100% for all excise conditions. After saving the tax code you need to make the conditions statistical once
again.
14. When I release the billing document to accounting there is an error that the account key is missing?
This is happening because one or more lines in the tax procedure has a condition with a value but is not
marked statistical. You need to check whether the conditions JMOD, JAED, JSED and JCES are marked
statistical in the tax procedure. You cannot rectify the documents which are in error. The correction takes
into effect only the future orders.
15. When I release to accounting I get a message tax amount greater than tax base?
This is happening because the tax base for some tax condition is falling less than the tax base amount.
R3 does not allow the tax base to fall below the tax amount. You need to check which condition is giving
the problem and based on that you can verify the tax procedure from-to settings.
16. Do I need to maintain the chapter-ids for each plant or can it be left blank?
If the same chapter-id is applicable for the material in all the plants then you need not maintain the
chapter-ids for all the plants. You can leave the plant blank.

17. When I try printing the excise register nothing comes up?
Check whether you have maintained the opening balance for the item in the corresponding register
(Table J_2IACCBAL for register account balances). Next check whether you have maintained the sap
script forms which are used for printing the registers in the CIN configuration. Finally check whether the
extraction has been done for the period.
18. When I try printing the excise invoice the list line turns red and nothing happens?
This is because you have not maintained the condition record for output determination. You need to
maintain the condition record for output determination at the sold to party level. Also for the documents
created already you can go into Billing header output and manually enter the output type j1io and save.
Later the excise invoices can be printed.
19. When I try to create RG1 issues entry the line turns red and nothing happens?
This is happening because you are trying to create an issue entry and the stock in the register is not
enough to do the issue. So you need to first update RG1 with the receipts and then go into the issues.
20. I have extracted the register data once but now I have added more transactions. Can I extract once
more?
You can re-extract the data if you have added more transaction data for the given period.
21. I am using another package for printing registers. Can I download the data once again?
To prevent data inconsistency in the third party application CIN does not allow you to re download the
register data once it has already been downloaded.
22. What is the issue classification for RG1?
You need to classify the RG1 entries as to whether they are receipts from manufacture or other receipts,
clearances of various types so that they can be reported under the various headings as required by the
Excise commissionerate.
23. How do I maintain the opening balances for my register for the first time?
You need load them manually at the initial data upload.
24. How do I get the opening balance for every month?
CIN calculates the opening balance for reporting purposes based on the transaction s extracted in any
period.
25. Are opening and closing balances of register available for me for reporting?
You must not pick up the opening and closing balances that are calculated by reporting because they
might get changed if some one does a re extract. So they need to be recomputed dynamically. They are
not stored.
26. Can I round the duty at the header level?
Duty can be rounded off in CIN only at the item level. Due to technical reasons duty round off is not
provided at the header level.
27. When I create an excise invoice for exports what exchange rate will the system take?
System picks up the exchange rate which is maintained in the CIN configuration data for the company
code.
28. With fortnightly utilization why do I need a part2 entry at the time of Excise invoice creation?
With fortnightly utilization you do not create an entry in the CENVAT or PLA registers. Instead CIN keeps
a separate Dispatch register and generates continuous serial numbers in this register that can be used
for future reconciliation.

29. Do I need to have balances in my CENVAT accounts at the time of Excise invoice creation?
At the time of excise invoice creation the debit is being made into an Excise payable account. So you
need not have balances in the CENVAT account. You need to have enough money at the time of
fortnightly utilization or you should have made a debit through TR6 into PLA.
30. What are the exceptional reports possible?
You can list all the billing documents for which excise invoice is not created. You can get a list of all
excise invoices for which billing document has been cancelled., You can also have a report of all
cancelled excise invoice for which the billing document is still open.
31. Can I know which are the billing documents for which there is no excise invoice?
Excise due list gives you all billing documents for which there is no excise invoice.
32. Number range skipping happens for excise invoice. What could be the reason?
CIN number ranges are defined as not buffered. You need to check if this has been changed. If skipping
happens never reset the number range.. you must report the problem to SAP support immediately so that
they can help you resolve this.
33. While doing excise invoice creation I get an error message that system failure during locking. What
can I do?
While creating the excise invoice, at the time of saving system tries to lock the GL account that is getting
updated with the new balances. S probably some one else could be changing the GL account data at that
point of time. This is a very short phenomena and is meant to keep the data consistency.
34. While doing depot sales invoice selection, list of invoices are not getting displayed. Why?
You need to check the customization settings for LIFO or FIFO and the invoices of which period you have
set. Also you need to check the excise group which is being used. System will show you only those
excise invoices which belong to the same excise group, plant, storage location and batch.
35. How do I handle the a-certificate at depot?
A certificates come when the goods are removed after paying a provisional duty. When the final price is
decided at the time of the order you need to pay the balance of the duty. There is no facility at the
moment to calculate the differential duty. You have to make the payment manually using J1IS at the
factory. Once this is done you can go back to the depot and capture this extra payment into your RG23D.
This is recorded as a new serial no with in the original folio so that the RG23D register value tally. At the
time of selection of excise invoice for sale you have the option to pick up the a-certificates for the excise
invoice and then the additional duty gets added into the invoice amount. Also this is reflected in the
RG23D register.
36. Is it possible to add some additional duty on to the depot invoice without A certificate?
No you need an A certificate if you have to get an additional duty in RG23D invoice. Alternative is to write
customer specific routines which are not supported by CIN.
37. How do I handle the returns at depot?
If there are returns to depot, that can be captured as any other receipt. You can enter the material
document no of the return receipt and the data gets copied and you can copy into RG23D.
38. How do I handle returns at factory?
There are no D3 procedures at the moment which is mandated by the excise department. Legally you can
take credit for all the receipts and then pay the duty when it goes out after repair or to another customer.
You can Excise invoice without PO route to take the credit.
39. When I do excise invoice creation, the system issues a message not enough balance. Why?
This does not happen any more. There was a need felt that we should check the balance s even though
we can pay the duty 15 days hence.

40. I am not able to save the excise invoice text?

You need to check the object type for the object id J1IN. this can be done by checking the data of the
view J_1IVTTXOB. The editor mode has to be set as Application text with SAVE key .
41. How can I include more text ids for the excise invoice?
You can use the CIN IMG text maintenance option and add more ids with descriptors. For excise invoice
creation the object is J1II. For depot receipts the object is J1IG and for depot sales it is J1IJ.
42. Where does the excise invoice get the business area from?
Excise invoice does not allow entry of business area. The business area in the billing document is
automatically taken for the excise invoice.
43. Where does the excise invoice get the profit center from?
Excise invoice picks up the profit center from the billing document if it is available there. If it is not
available there then it looks at the plant specific material master data and picks up if available.
44. Why do I need tax jurisdiction?
Tax jurisdiction codes are one method by which you can maintain tax rates with out having multitude of
tax codes. You can maintain the LST effectively with one tax code and multiple jurisdiction.
45. Can I do away with jurisdiction code?
You have to use tax jurisdiction code with the standard CIN. If you do not want to make use of that for
rate determination you should at least have one jurisdiction at the federal level.
46. What will the system do if I have not received the form at the time of billing?
The system will first check in the Form type maintenance whether the form is marked as required. This
means that the form has to come by the time billing happens. Once you receive the form you need to
enter it into the forms data base (J1IU) for the delivery document number. If the form receipt is not
maintained then the billing will do a re-pricing and charge full tax for the particular excise duty.
47. How does fortnightly utilization determine the accounts to be posted?
There is no transaction type for determining the accounts of the fortnightly utilization. The credit account
of the transaction type DLFC is used as the debit account here. For the credit side we pick the debit
accounts from the GRPO, EWPO and TR6C transactions. So it is mandatory that whether you use EWPO
or not you should have maintained the account determination for all transaction types for a given excise
group.
48. What is transaction type UTLZ used for?
Transaction type UTLZ is used for determining the accounts when a JV is posted with an option of
fortnightly payment.
49. Can I have my own transaction types?
Transaction types are used internally by CIN for various purposes. So you cannot define your own
transaction types. Alternate account assignments can be done using sub transaction types.
50. Where does RG1 get the data of packed/loose material ?
Initially when you upload the balance in RG1 you need to mention the material form. Later the system
assumes the same for the same material code. If you need to dynamically change this then you can make
use of the user-exit. A material can be marked either as packed or loose but not both.
51. What will batch utilization of modvat do?
Batch utilization is just an interface that helps you to complete the utilization of a set of documents in one
step. This simply triggers individual utilization as a BDC so that the user interaction can be minimized.
52. What is the number range used for export excise invoice?
Export invoices uses the number range object j_1iexcexp where as the local invoices uses the number

range j_1iexcloc. Even though customers are free to use the same number series now there is no bar
from using separate series.
53. Can I create a zero duty excise invoice?
Zero duty invoices can be created both from sales as well as using excise invoice other movements
based on the business requirement. These invoices do not generate an accounting document.
54. Is it possible to cancel an excise invoice with zero duty?
There is no problem in canceling a zero duty excise invoice.
55. Where does the billing document get the account for excise duty payable?
The account determination rules of R3 billing is used for determining the account for the excise posting
line in a billing document. The CIN customization has no role to play here.
56. How does the stock transfer get the assessable value from?
This is got using the condition base value formula. For this to happen you should have maintained the
assessable value in CIN master data.
57. How do I know whether SD route or mm route is followed for stock transfer?
You need to check in SPRO Materials Management Purchasing Set up Stock transport order
Assign delivery type/checking. For SD order this will be marked A
58. Based on the route followed how do I create an excise invoice?
If SD route is followed for stock transfer then you can use J1IIN to create excise invoice. If MM route is
used for creating stock transport order then you need to use J1IS for creation of Excise invoice.
59. How to configure stock transport order?
Stock transport order is set up in SPRO- Materials management Purchasing Set up stock transport
order. Here first you have to define the sales area and the default customer code. You have to assign the
order type to the checking rule. Finally you need to maintain the delivery type for the order type.
60. I cannot create a proforma billing document for a replenishment delivery. What has gone wrong?
Normal R3 setting does not allow a billing document to be created for a delivery type NL. You need to
change the customization settings of the item category type NLN so that it becomes relevant for billing.
61. When I do a receipt at the depot from my factory how do I give the excise invoice number?
If the excise invoice already exists in the R3 system then in the detail screen of RG23D receipt you can
directly enter the internal document number of the excise invoice. This will automatically allow the entire
challan details to be copied.
62. Should I receive the full quantity at depot or transit loss is allowed?
You can receive some goods in the depot which is less than the dispatched. You have the option to enter
the receipt quantity as well as the challan quantity at the time of RG23D receipt.
63. I want to calculate the excise duties at the time of export sales. What should I do?
There is a calculate tax button on the utilization screen of Excise invoice creation.. This option will
calculate the taxes for an export invoice.
64. Can I use my own layout for printing sales excise invoice?
Yes. If you are using your own layout then you need ot maintain this in the output determination
procedure of billing documents for the output type j1i0.
65. Can I use my own layout for printing Excise invoice other movements?
Excise invoice other movements picks up the report layout from the output type ZEXC which has been
maintained against the SD output determination Sales documents. You can maintain your own layouts
here and then they will be used for printing.

66. Can I use my own layouts for register printing?

Yes you can have your own layouts. You need to maintain the same in the CIN customization against the
sap script form maintenance.
67. Can I change the posting date at the time of fort nightly utilization?
You can enter the posting date as per which you want the system to do the fortnightly
posting.
68. Should I keep the fi/mm period open at the time of posting fort nightly utilization?
The current period alone should be open at the time of fortnightly utilization. It is also required that both
MM as well as FI periods need to be open.
69. When I run fortnightly utilization the system is showing zero balance even though there is some
balance in the GL account?
The balances for utilization are picked up in CIN only when the MM period closing is done for the previous
period. For eg. If you r posting date is 5th Dec and the November period is still open system will show
zero balance.
70. Can I change the document type for the accounting document created at the time of excise invoice
creation?
Document type for excise invoice utilization is defined with in CIN customization at the company code
level. You can use your own document type.
71. Can I post the fort nightly utilization for individual excise invoices?
You can post the fortnightly utilization for individual invoices also. System give a message that the
CENVAT utilization is already done. But this is configurable and could be made a warning.
72. Can I reverse the fortnightly utilization done?
No you cannot reverse the posting done with fortnightly utilization. Simulate option is provided in this
option for the user to check whether things are ok so that the chances of error are minimal in the actual
run.
73. Can I have excise rates more than 100%?
Yes you can have excise rates higher than 100% since some of the tobacco items carry higher excise
rates.
74. How do I map the tax classification to form types?
You can maintain it along with Form type definitions in CIN IMG.
75. Can I decide not to generate folio numbers at the time of RG23D creation?
Yes you can keep the customization option at the Excise group level blank and also you can leave the
user-exit open.
76. What will happen when I cancel a RG23D selection for sales already made?
If you are canceling a selection before posting then the RG23D register the record will be removed. But if
you have already done the posting then the RG23D record is marked cancelled and the balance in the
original invoice is inflated by an equivalent amount.
77. Why there is no transaction type for J2IU?
Transaction type is used for account determination by CIN . This is an internal entity for CIN and has no
relevance to the business process. Since there is no account determination need for J2IU there is no
transaction type.
o What should be my accounting entry in SD ?
For Factory Sale

During Billing Document

Customer Account Dr.
Sales Account Cr.
Cenvat Suspense Account Cr.
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.
For Stock Transfer through SD
No Accounting entries for Performa Billing Document
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.
Note: Cenvat Suspense Account should be cleared appropriately using FI JVs