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What is CIN?

CIN Means Country India Version

In Indian Taxing procedure, Excise Duty plays a vital role in manufacturing cenario’s. Excise
related configuration is known as CIN configuration. CIN Configuration is a topic in itself.

Some info on CIN Configuration (it may not appear as understandable below, but if you check
on screen, it will be understood better)

Country Version India comes with four pricing procedures as follows:


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

CIN: IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings > Maintain
Excise Registrations

In this IMG activity, you maintain the data relating to your excise registrations.
- 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.
- 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

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 livable 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 livable 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.


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. 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 Utilisation 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.
- 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 - In this IMG activity, you maintain excise information relating to your
plants.
Plant Settings - In this activity, you maintain excise information relating to your plants.
For each plant:
- Specify whether it is a manufacturing site or a depot.
- Assign it an excise registration ID. - You can assign the same ID to more than one plant, if
required.

Depot - Indicates that the plant in question is a depot. - 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 credit

Maintain Excise Groups - 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.
1. Create one excise group for each set of registers that you need to keep.
2. Assign the excise groups to plants.
3. Maintain whether this Excise group is for a depot or not.
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 availa 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 create' 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. - 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. - 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. - 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 Group - In this IMG activity, you define the different excise series groups within
your company. Series groups allow you to maintain multiple number ranges for the outgoing
excise documents. Based on excise regulations and exemptions from the authorities you can
maintain multiple number series for outgoing documents. But each of these series has to be
declared to the excise authorities.

- 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' Iindicator. 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 - In this IMG activity, you maintain the excise duty indicators.
IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination
of Excise Duty > Select Tax Calculation Procedure

In this IMG activity, you specify which tax procedure you want to use for determining excise
duties and sales taxes on input materials in India.
- If you use condition-based excise determination, use a copy of the tax procedure TAXINN.
- If you use formula-based excise determination, use a copy of the tax procedure TAXINJ.
This tax procedure also supports condition-based excise determination, so that you can work
with both concurrently.
We strongly recommend that new customers use condition-based excise determination. 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 - In this IMG activity, you define which tax procedure and pricing
condition types are used in calculating excise taxes using formula-based excise determination.

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

When you enter a purchasing document, for example, a purchase order, the R/3 System
automatically calculates the applicable excise duties using the condition technique.

Features : The standard system comes with two tax calculation procedures. TAXINN is only
supports condition-based excise determination, whereas TAXINJ supports condition-based
excise determination and formula-based excise determination. Both tax procedures contain
condition types that cover all of the excise duties and sales taxes applicable.
Since the exact rates of excise duty can vary on a large number of factors, such as which vendor
you purchase a material from, or which chapter ID the vendor stocks the material under, you
create condition records for every sort of excise duty.
When you come to enter a purchasing document, the system applies the excise duty at the rates
you have entered in the condition records.

Customizing : Make the settings in Customizing Basic -> India -> for Logistics – General, by
choosing Taxes on Goods Movements Account -> Excise Duties Using Condition Technique and
…-> Settings Determination.

These activities include one activity where you define a tax code for condition-based excise
determination.

Master Data - Create condition records for all excise duties that apply, and enter the tax code for
condition-based excise determination in each.

Day-to-Day Activities - When you enter a purchase order or other purchasing document, enter
the tax code for condition-based excise determination in each line item. The system then
calculates the excise duties using the condition records you have created.

When the ordered materials arrive, you post the goods receipt and the excise invoice. The system
posts the excise duty to the appropriate accounts for deductible input taxes when you enter the
excise invoice.

Creating Condition Records for Excise Duty


1. In the command field, enter FV11 and choose .
2. Enter the condition type that you want to create a condition record for and choose .
The Key Combination dialog box appears.
3. Select the combination of objects that you want to create the condition record for. On the
dialog box, Control Code means "chapter ID." So, for example, to create a condition record for a
tax that applies to a combination of country, plant, and chapter ID, select Country/Plant/Control
Code.
4. Choose .
5. Enter data as required. - In the Tax Code field, enter the dummy tax code that you have
defined.
6. Save the condition record.
Formula-Based Excise Determination - When you execute a business transaction involving
materials that are subject to excise duty, the system automatically calculates the duty for you.

In order for the system to be able to determine which rate of excise duty to apply, you must have
maintained all the data on the Excise Rate Maintenance screen, which you can Master
Data®access from the SAP Easy 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.

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 indicator 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.
Let’s 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 - 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.
- 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

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 - 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.

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 - 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.
- 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 - 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 sub transaction types, enter the accounts for
each sub transaction type as well.

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 - 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 all transactions.
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 configuration step has to
be made in Screen Sequences for Material Master.
Following document helps you to do this configuration.
- Material Master à Logistics General
1. Go to IMG Define Structure of Data Screen for each Configuring the Material master Screen
Sequence.
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 Sub screens 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 sub screen and ensure that the sub screen 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 sub screen appears.