CIN User Manuval For MM: BPX Community Project

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Added by Guest, last edited by redriver on J an 24, 2012
BPX Community Project
CIN User manuval for MM
COUNTRY INDIA VERSION
USER MANUAL
MATERIAL MANAGEMENT
TABLE OF CONTENT
1THECOUNTRY INDIA VERSION(CIN)........................................................................................................................................ 3
1.1EXCISE REGISTRATION....................................................................................................................................................... 3
1.2EXCISE GROUP.................................................................................................................................................................... 3
Page 1 of 23 CIN User manuval for MM - BPX Community Project - SCN Wiki
21/09/2013 http://wiki.scn.sap.com/wiki/display/bpxproj/CIN+User+manuval+for+MM
1.3SERIES GROUP..................................................................................................................................................................... 3
2ESSENTIALMASTERDATAFOR EXCISE.................................................................................................................................... 3
2.1Chapter Id......................................................................................................................................................................... 3
2.2MaterialChapterID combination.................................................................................................................................... 3
2.3MaterialAssessable value................................................................................................................................................. 3
2.4CENVAT Determination...................................................................................................................................................... 3
2.5VendorExcise details......................................................................................................................................................... 3
3TAXCONDITION RECORDS........................................................................................................................................................ 3
3.1CenvatableExciseDuties Conditions (%ge)...................................................................................................................... 3
3.2CenvatableExciseDuties Conditions (Qty)...................................................................................................................... 3
3.3Non- Cenvatable Excise Duties Conditions(%ge)............................................................................................................. 3
3.4Non- Cenvatable Excise Duties Conditions(Qty).............................................................................................................. 3
3.5VAT Conditions................................................................................................................................................................... 3
3.6CST Conditions................................................................................................................................................................... 3
3.7ServiceTaxConditions: Non-Inventoried........................................................................................................................ 3
3.8ServiceTaxConditions: Inventoried................................................................................................................................. 3
3.9TaxConditionstobe Maintained...................................................................................................................................... 3
4ProcedureforClaimingCENVATfor Raw Materials.............................................................................................. 3
4.1CreatethePurchase Order................................................................................................................................................ 3
4.2Goods Receipt...................................................................................................................................................................... 3
4.2.1OptionI:Capture Excise Invoice @ Goods Receipt............................................................................................... 3
4.2.2OptionII:Capture Excise Invoice seperately.......................................................................................................... 3
4.3Tocheckthestatusofall the excise invoices captured.................................................................................................. 3
4.4PostExcise Invoice.............................................................................................................................................................. 3
5ProcedureforClaimingCENVATfor Capital Goods............................................................................................... 3
6ProcedureforClaimingDutiesfor Imported Goods............................................................................................. 3
7ProcedureforClaimingCENVATfor Raw Materials without Material ID.................................................... 3
8ClaimingCustomDutiesPurchased fromDealer (who has imported the Matrl)...................................... 3
9ProcedureforInventorizingCustom Duties Purchased for a Depot............................................................. 3
10ProcedureforCENVAT Reversals................................................................................................................................ 3
10.1ReturnDelivery(MvT: 122).............................................................................................................................................. 3
10.2CancellationofMaterial Documents.............................................................................................................................. 3
10.3PurchaseOrder Returns................................................................................................................................................... 3
10.4CENVATAdjustmentPostings(J1IH Excise J V).............................................................................................................. 3
10.4.1MakingAdjustmentPostingsfor Scrap................................................................................................................. 3
10.4.2MakingAdjustmentPostingsfor Materials Not Used in Production................................................................. 3
10.4.3MakingAdjustmentPostingsfor Additional Excise Paid to Vendors................................................................ 3
10.4.4MakingAdjustmentPostingsfor Money Transferred to PLA............................................................................. 3
10.4.5CancelingExcise Invoices......................................................................................................................................... 3
10.4.6MakingAdjustmentPostingsfor Other Transactions.......................................................................................... 3
11Subcontract Challan..................................................................................................................................................... 3
11.1NormalSubcontract Process........................................................................................................................................... 3
11.2SubcontractProcesswhereScrapisreceived fromVendor......................................................................................... 3
11.3SubcontractProcess:ReturnDeliveryTo Vendor.......................................................................................................... 3
11.4SubcontractProcess:CancellationofGoods Receipt................................................................................................... 3
11.5Subcontractingoverconsumptionorunder consumption.......................................................................................... 3
11.6Challancompleted180daysreverseand recredit the challan.................................................................................... 3
12FrequentlyAsked Question........................................................................................................................................... 3
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 you 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:
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
1.1EXCISE REGISTRATION
Each entity is assigned its own excise registration number. Every factory that manufactures excisable goods is required to register separately.
1.2EXCISE 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 fromall 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.
1.3SERIES GROUP
Series Group determines number range for outgoing excise invoice / challan ( e.g. 57AC5 challan etc.)
2 ESSENTIAL MASTER DATA FOR EXCISE

Transaction Code: J1ID
- Excise Master.
- Mat erial Chapter Id Combinat ion.
- Mat erial Assessable Val ue.
- CENVAT Determination
- Vendor Excise Details.
2.1Chapter Id
Select Chapter Id
Go to New Enteries 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 Enteries 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
If it is capital itemthen 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 you can credit 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
2.4CENVAT Determination
In this section you have to 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
2.5Vendor Excise details

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 ind 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
NOTE : If the Vendor details are not maint ained, then at the time of Vendor Excise Invoi ce Capturing, t he syst em will ask for the Vendor Excise Det ai ls, which needs to be provided in the
Miscellaneous Tab of Excis sub Icon.
3TAX CONDITION RECORDS

Tax Conditi ons to be used :
3.1 Cenvatable Excise Duties Conditions (%ge)
Condit ion Type Descripti on Set of f Condition Type Set of f Condition Desc
J MOP IN: BED setoff % J MX1 IN: A/P BED setoff
J ECS IN ECS inventory % J EX1 IN: A/P ECS setoff
J SEC IN S&HECS invory % J HX1 IN: A/P S&HEC setoff
J AOP IN: AED setoff % J AX1 IN: A/P AED setoff
3.2 Cenvatable Excise Duties Conditions (Qty)
J MOQ IN: BED setoff Qty J MX1 IN: A/P BED setoff
J EOQ iN: ECS setoff Qty J EX1 IN: A/P ECS setoff
J SHO iN S&HECS setoff Qty J HX1 IN: A/P S&HEC setoff
J AOQ N: AED setoff Qty J AX1 IN: A/P AED setoff
3.3 Non- Cenvatable Excise Duties Conditions(%ge)
J MIP IN: BED inventory % J MX2 N: A/P BED inventor
J ECO IN A/P ECes setoff % J EX2 IN: A/P ECS inventry
J SEO IN A/P S&H setoff % J HX2 IN: A/P S&HEC invtry
J AIP IN AED inventory % J AX2 IN: A/P AED inventor
3.4 Non- Cenvatable Excise Duties Conditions(Qty)
J MIQ IN: BED inventory Qt J MX2 N: A/P BED inventor
J ECQ IN ECS inventory Qty J EX2 IN: A/P ECS inventry
J SHQ IN S&HECS invent Qty J HX2 IN: A/P S&HEC invtry
J AIQ IN AED inventory Qty J AX2 IN: A/P AED inventor
3.5VAT Conditions
Deduct able Conditi on Type Descripti on Non Deductable Condit ion Type Descripti on
J VRD A/P VAT RM Deductibl J VRN A/P VAT RM Non Deduc
J VCD A/P VAT CG Deductibl J VCN A/P VAT CG Non Deduc
3.6CST Conditions
Condit ion Type Descripti on
J VCS A/P CST Non Deductib
3.7 Service Tax Conditions: Non-Inventoried
J SRT A/P SERVICE TAX
J EC3 A/P ECS for ST
J ES3 A/P SECess for ST
3.8 Service Tax Conditions: Inventoried
J SRI A/P SERVICE TAX_INV
J EC4 A/P ECS for ST_INV
J ES4 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 Descripti on Input s T.Code Role

1 Maintain Excise Rate Maintenance details Material, chapter Id, Assessable Value J 1ID Purchaser / Buyer / Excise Personnel
2 Maintain Tax Conditions Plant / Material / Vendor / Tax Classification FV11 Purchaser / Buyer
3 Create Purchase Order Vendor / Material / Qty / Plant / Price / Tax Code ME21N Purchaser / Buyer
4 Goods Receipt (Capture Excise Invoice) PO No. / Qty / Excise Inv #/ Ex. Invoice Dt MIGO Stores
5 List of Excise Invoice, where it is captured but not Posted Excise Group J 1I7 Excise Personnel
6 Change Excise Invoice ( if Required) Vendor Ex. Inv / Date J 1IEX Excise Personnel
7 Post ExciseInvoice Vendor Ex. Inv / Date J 1IEX Excise Personnel
8 Updation of Registers Excise Group / Start Dt / End Dt J 2I5 Excise Personnel
9 Print of Registers Excise Group / Start Dt / End Dt ZJ 2I6 Excise Personnel
4.1 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.


4.2Goods Receipt
4.2.1 Option I: Capture Exci se 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 systemwill copy all the relevant information from PO. Enter recieved 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)Onlycaptureexcise invoice:Itwillcapturetheexcisedetails& post Part I only
(2)Capture&PostExciseInvoice:This will update Part1 and Part 2.
(2) Only refer excise invoice :Itwillnot capture excise invoice, no part I posting
(3) Only Part 1 : This will update the Part 1 only
(4) No Excise Entry :Therewillbenoexciseentry
SelectOnly Capture Excise Invoi ceon this tab and check the Excise group.
Check the excise details related to the line item recieved 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 buttontosavetheGoodsreceipt,systemwillgeneratetheGoodsreceipt Document. Systemwill Automatically update the Part I register as soon as the GR is made.
4.2.2 Option II: Capture Excise Invoi ce seperately

Transaction code J1IEX_C
Capt ure the Vendors 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

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 invioce. 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.
You can select further the following
(1) No posting done
(2) Part I & Part II posted
(3) Part 1 posted, part II not posted.

4.4Post Excise Invoice
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 J 1IEX / J 1IEX_P Select
`POST if no change is required.

Now you can `POST CENVAT
Systemwill post the cenvat amount in RG23 Part II based on material type (inputs / Capital Goods).


However if you want to change the excise details go to the Change mode...
Here you 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)
Systemwill show the RG23 Part 1 serial no., GR no. PO number. You can change the excise vendor also.

5 Procedure for Claiming CENVAT for Capital Goods

1 Maintain Excise Rate Maintenance details Material, chapter Id, Assessable Value, declae material as Asset /
Consumable
J 1ID Purchaser / Buyer / Excise
Personnel
2 Maintain Tax Conditions Plant / Material / Vendor / Tax Classification FV11 Purchaser / Buyer
5 List of Excise Invoice, where it is captured but not
Posted
Excise Group J 1I7 Excise Personnel
8 Capital Goods Transfer of Credit ( post 50% credit) Company code / Excise Grp / Plant / J 2I8 Excise Personnel
10 Print of Registers Excise Group / Start Dt / End Dt ZJ 2I6RG23C Excise Personnel

Businesses are allowed to set off excise duty on purchases of capital goods against excise duty on outputs. However, unlike with raw materials, you can only set off half of the duty in the first year, and the
rest in any year after that.
Prerequi sit es : In the material master (J 1ID) , you have classified the capital goods as such.
Features : When you post an excise invoice that contains capital goods, the systemposts half of the excise duty to your CENVAT account and posts the rest to a G/L account for CENVAT on hold. In
followingyears, you 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).
Steps: When working with excise invoices that include capital goods, note the following:
Capturing vendor excise invoices
When you create an excise invoice with capital goods, you have to set the material type to A (assets), C (consumables), or T (tools).
Posting excise invoices
When you come to post the excise invoice, the system posts only half of the excise duty to the CENVAT account.
Transfer of CENVAT Credit on Capi tal Goods (Transacti on code : J2I8)
**Youusethisreport to display a list of the vendor excise invoices where the vendor has levied excise duty but you have not posted it (in full) to your 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 systemdisplays a list of excise invoices with excise duty outstanding. It shows you:
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 you want and choose Transfer credit. If you want to transfer only a portion
of the remaining amount, enter this amount as the amount to be credited.
The systemcreates an accounting document to post the duty to the CENVAT account and creates an
entry in the Part II register.

You can select allorselectitemsandthenpress`TransferCredit

6 Procedure for Claiming Duties for Imported Goods
1 Maintain Excise Rate Maintenance details Material, chapter Id, Assessable Value J 1ID Purchaser / Buyer / Excise
Personnel
2 Create Purchase Order Vendor / Material / Qty / Plant / Price / Zero Tax
Code(VI)
ME21N Purchaser / Buyer
3 Ammend Purchase Order with the Customs Duties conditions (for domestic
custom vendor)
Custom duty Conditions :
J CDB - IN Basic Customs
J CV1 - IN CVD - Foreign Ven
J ECV - IN ECS-CVD:ForVend
J 1CV- IN HECS-CVD:For Ven
J EDB- IN ECS on Cust Duty
J SDB - IN SH ECS on BCD
J ADC - IN Ad Duty Cus:For V
4 Post Invoice for CustomVendor and Foreign Vendor. PO / Vendor code : Planned Delivery Costs MIRO Accounts
6 List of Excise Invoice, where it is captured but not Posted Excise Group J 1I7 Excise Personnel
10 Print of Registers Excise Group / Start Dt / End Dt ZJ 2I6 /
ZJ 2I6RG23C
Excise Personnel
7 Procedure for Claiming CENVAT for Raw Materials without Material ID

1 Maintain Excise Rate Maintenance details the
Chapter Id.
Chapter Id J 1ID Purchaser / Buyer / Excise
Personnel
2 Maintain Tax Conditions Maintian tax conditions for Plant/Material Group combination. FV11 Purchaser / Buyer
4 Goods Receipt (Capture Excise Invoice) PO No. / Qty / Excise Inv #/ Ex. Invoice Dt. Also in the line itemof Excise Tab, specify the
Chapter Id & Matrl Type.
MIGO Stores
5 List of Excise Invoice, where it is captured but
not Posted
7 Post Excise Invoice Vendor Ex. Inv / Date J 1IEX Excise Personnel
9 Print of Registers Excise Group / Start Dt / End Dt ZJ 2I6 Excise Personnel

8 Claiming Custom Duties Purchased from Dealer (who has imported the Matrl)
Use : The materials are procurred froma 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.
1 Maintain Excise Rate Maintenance details Material, chapter Id, Assessable Value J 1ID Purchaser / Buyer /
Excise Personnel
2 Maintain Tax conditions Maintian tax conditions with BED / AED conditions as 0%, as this is going to be
replaced by CVD and SAD values fromthe pricing procedure.
FV11 Purchaser / Buyer /
Excise Personnel
NOTE Maintain CVD and SAD values in the pricing
procedure PO Condition Tab.
PO Line Item Condition tab specify CVD Amt for the condn type J EXCand
SAD for condn type ZADC.
3 Post Invoice for CustomVendor and Foreign
Vendor.
PO / Vendor code : Planned Delivery Costs MIRO Accounts
5 List of Excise Invoice, where it is captured but
not Posted
7 PostExciseInvoice Vendor Ex. Inv / Date J 1IEX Excise Personnel
9 Print of Registers Excise Group / Start Dt / End Dt ZJ 2I6 /
ZJ 2I6RG23C
Excise Personnel

9 Procedure for Inventorizing Custom Duties Purchased for a Depot
Use : The materials are procurred for a depot, where, the CustomDuties get inventorized, captured in transaction J 1IG and then the same duties are picked in sales invoice for passing on to Customer.
Process:
1 Maintain Excise Rate Maintenance details Material, chapter Id, Assessable Value J 1ID Purchaser / Buyer / Excise
Personnel
2 Maintain Zero Tax conditions Maintain Zero Tax conditions FV11 Purchaser / Buyer / Excise
Personnel
3 Create Purchase Order Vendor / Material / Qty / Plant / Price / Zero Tax Code ME21N Purchaser / Buyer
NOTE Maintain all the CustomDuties in PO Line item condition tab For External
Vendors and also Inter Company purchases
The following Condition types needs to be selected for
inventorizing the Custom Duties:
J CDB - IN Basic Customs
J CV3- IN CVD Inventory
J ECI- IN ECS-CVD:Inventory
J 1CI- IN HECS-CVD: Inven'y
J EDB- IN ECS on Cust Duty
J SDB- IN SH ECS on BCD
J ADI- IN Ad Duty Cus:Inven
4 Goods Receipt (Do not capture Excise Invoice) PO No. / Qty MIGO Stores
5 Capture Excise Invoice for Depot Material Doc #(GR), Excise Group, Excise Inv #/ Dt. J 1IG Excise Personnel

10 Procedure for CENVAT Reversals

Cenvat reversals due t o:
Return delivery. 1.
Cancellation of Material Document. 2.
Purchase Order Returns. 3.
CENVAT Adjustments. 4.
10.1 Return Delivery (MvT : 122)
1 Goods Receipt (Return Delivery / Material Document) GR Material Doc No. / Qty / Reason for MvT MIGO Stores
2 Create Excise Invoice Ref Doc Type:MATD / Rej Mat Doc No. / Series Grp / Excise Grp J 1IS Excise Personnel
3 Print Excise Invoice Ex Inv #/ Year J 1IV Excise Personnel
On rejection of material ( Return Delivery: using 122 movement type) , the user will use the transaction J 1IS to generate an outgoing Excise Invoice which will reverse the cenvat credit.
Steps involved:
(a)EnterMIGO
(b) Select Return Delivery & Material Document
(c) Enter the Original material document no. (GR No.)
(d) Enter reason for movement
(e) Check &Post.Systemwillgenerateadocumentnumber.

For Excise Invoice creation ( to send back the material)
(a) Transaction Code: J 1IS
(b) Reference Doc. Type MATD
(c) Document No. is the rejected GR No.
(d) Enter Document year, Series Group and Excise Group.
(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 J 1IV (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 J 1IS. 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 you have posted a goods receipt and then posted the CENVAT on the excise invoice accordingly. Then it transpires there is a problemwith the goods and the goods receipt has to be
reversed. Under excise laws that means you are no longer entitled to the CENVAT credit.
In the SAP System, therefore, you have to reverse CENVAT posting correspondingly.
Process Flow :
1 Cancellation / Material Document GR Material Doc No. / Qty / MvT: 102 MIGO Stores
2 Post Excise Invoice Vendor Excise Invoice J 1IEX Excise Personnel
3 Cancel Excise Invoice (if required) Vendor Excise Invoice J 1IEX Excise Personnel
1. You reverse the goods receipt:
Go to Transaction Code -MIGOand select: Cancellation and Material Document 1.
Enter the number of the goods receipt that you want to cancel 2.
Choose the line item and Flag the line items as OK 3.
Save the reversal document 4.
The system: 5.
- Creates a reversal document to cancel the goods receipt.
-Createsadditionalentries in Part I of the appropriate excise register to reverse the original entries.
-Changestheexciseinvoice document status to In process.
2. You reverse the CENVAT post ing on t he excise i nvoice:
6. Go to Transaction Code -J1IEX. 1.
Select : Post CENVAT and Vendor Excise Invoice 2.
EntertheVendorsExciseInvoice Number. 3.
Choose Simulate. 4.
A dialog box appears, showing which postings the systemwill make to reverse the CENVAT. 5.
Choose Post CENVAT. 6.
- The System :
-Createsan accounting document to reverse the CENVAT postings
-Createsa corresponding entry in Part II of the appropriate excise register
3. If your plant does not allow multi ple goods receipt s per exci se invoice, you must also cancel t he excise i nvoi ce:
The systemchanges the excise invoice status to Canceled.
If , however, you do allow mult iple goods receipt s per excise invoice, you do not have to cancel it .
If you want, you can leave the excise invoice as it stands. Then, if you receive another delivery of goods for this excise invoice, enter the excise invoice number when you post the goods receipt.
1. Go to Transaction Code -J1IEX. 1.
Select : CANCEL and Vendor Excise Invoice 2.
Enter Vendor Excise Invoice. 3.
4. Save the Excise Invoice. 4.
10.3 Purchase Order Returns

Process Flow :
1 Create Purchase Order with Returns Indicator. Doc Type: ZRTN / Vendor / Material / Qty / Plant / Price / Tax Code ME21N Purchaser / Buyer
2 Create Outbound Delivery w.r.t Purchase Order Purchase Order #, Select the proper variant. VL10B Stores
3 Post goods Issues Do PGI with proper Reason for MvT VL02N Stores
4 Create Excise Invoice Goods Issue Mat Doc # J 1IS Excise Personnel
5 Print Excise Invoice Excise Invoice #, Output Type : J REC J 1IV Excise Personnel
10.4 CENVAT Adjustment Postings (J 1IH Excise J V)

Use: - You use these functions to make an adjustment posting to any of your CENVAT accounts.
10.4.1 Making Adjustment Postings for Scrap
Use: - You follow this procedure if you have scrapped a material and want to reverse the excise duty debited to your CENVAT account.
10.4.2 Making Adjustment Postings for Materials Not Used in Production
Use: - You follow this procedure if you have not used a material in the production process and want to reverse the excise duty debited to your CENVAT account.
Procedure: -
1. J 1IH - Excise J V / Create / Matl write-off.
2. Enter data as required, including:
Document number (This Document is of Movement Type 551 i.e. GI for Scrap)
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 Enterbutton. The system displays the information from the material document.
4. Adjust the posting date as necessary.
5. Adjust the excise duty for each line itemeither: Manually or By assigning the line item to an excise invoice
6. Specify which G/L accounts are to be posted to. Here you can change Debit A/c as per your requirement.
7. Save the adjustment posting. System will post Excise J V Document, Accounting Document Part2 Serial No.
10.4.3 Making Adjustment Postings for Additional Excise Paid to Vendors
Use: - You follow this procedure if a vendor has increased the amount of excise duty that it originally charged you and you want to debit the difference to your CENVAT account.
Procedure: -
1. J 1IH / Excise J V / Additional excise.
2. Enter data as required. In the Document number field, enter then number of the document sent to you by the vendor. Click on Enterbutton.
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 Detailsbutton 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 Headerbutton 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.
6. Specify which G/L accounts are to be posted to and Save the adjustment posting. Systemwill post Excise J V Document; Accounting Document with Part 2 Serial No.
10.4.4 Making Adjustment Postings for Money Transferred to PLA
Use: - You follow this procedure to make an adjustment posting when you transfer money to your personal ledger account (PLA).
Prerequi sit es: - You have already transferred the money to your PLA at the bank, using a TR6 challan, and have posted the corresponding accounting document.
Procedure: -
1. J 1IH / Excise J V / TR6 challan.
2. Enter data as required, including the document number. You 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 Enterbutton. If you entered the accounting document number, the systemdisplays the information from it.
4.Entertheamountsagainsttheaccountsthatyou require.
5. Save the adjustment posting.
6. Systemwill post Excise J V Document; Accounting Document with Part2 Serial No.
10.4.5 Canceling Excise Invoi ces
Use: - You follow this procedure in order to cancel an outgoing excise invoice. It reverses any excise duty accounted for.
Procedure: -
1. J 1IH / Excise J V / Cancel exc. inv.
2. Enter the number, year, and series group of the excise invoice that you want to cancel. A dialog box appears.Choose Yes.
3.BeforepostingthedocumentchecktheAccountingdocument going to be generated. Here click on Determine G/L Accountsbutton.
4. Save the adjustment posting. System will post Excise J V Document; Accounting Document with Part2 Serial No.
10.4.6 Making Adjustment Postings for Other Transactions
Use: - You follow this procedure if you want to make an adjustment posting that does not fall into any of the other categories of adjustment offered by this function. You can only use an external document
as your reference document.
Procedure: -
1. J 1IH / Excise J V / Other adj.
2. Enter data as required, including: Document number Enter the number of the external document that you want to refer 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 Enterbutton. 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 Detailsbutton 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 you want system to propose the BED and Ed Cess
Amount, Click on Get Excise Invoicebutton and select the proper Excise Invoice fromwhich the proportionate amount is to be copied. Select the Excise Invoiceand click on Continuebutton. 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
Headerbutton 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 J V Document; Accounting Document with Part2 Serial No.
TIPS to simpli fy Excise JV t ransactions: - (J1IH)
1. Assigning Excise Invoices to Line It ems 1.
Use: - When you make an adjustment posting, you follow this procedure if you want to specify the original excise invoice associated with a line item.
Procedure: -
1. Select the line item that you want and choose Get excise invoice. The system displays a list of all the excise invoices that you have posted fromthis vendor for this particular material.
2. Select the excise invoice that you want and click on Enterbutton. 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. If you then overwrite these amounts, you 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. Speci fying Which CENVAT Account s to Adjust 1.
Use: - When you make an adjustment posting, you 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 you entered on the selection screen.
2. Add another account, if you 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 Enterbutton. 3. Displaying CENVAT Account Balances To display the balances of your CENVAT accounts, choose Balances. The system displays the balances only
of the CENVAT accounts that are affected by your G/L postings.
11 Subcontract Challan
11.1 Normal Subcontract Process

1 Create Subcontract Purchase Order Document type(NB) / Pur.org ./ Pur.group / Co.code / Material / Qty. / Price / Plant /
Requister / Delivery date / Vendor no ./ Tax code / Item catgory(L)/Components
ME21N Purchaser /
Buyer
2 Create transfer Posting of materials sent out for sub-
contracting with reference to Subcontractor PO.
Select the material, and do PGI or create Delivery. ME2O Stores
3 Create Subcontracting challan Materail doc / Fiscal year / Excise group / Series group J 1IF01 Excise
Personnel
4 Print Subcontract Challan Go to transaction of Challan Change Take print and save. J 1IF11 Excise
Personnel
5 Post goods receipt (MIGO) PO NO./Delivery Note/Posting date/Excise Invioce Tab -Refer subcontracting
challan /storage location
MIGO Stores
6 Reconcile Subcontracting challan Material Document/Challan/Fiscal year J 1IFQ Excise
Personnel
7 List of subcontracting challans List click on Anexure IV J 1IFR Excise
Personnel
8 Complete/Reverse/Recredit Subcontracting challan Complete the challan J 1IF13 Excise
Personnel
9 Display Subcontracting challan Display Subcontracting challan J 1IF12 Excise
Personnel

Process:
1. Create Subcontract Purchase Order : 1.
Header Material


Sub-Component

2. Transfer Post ing of Sub-component s to Vendor: (ME2O) 1.
Select the Line Itemand Create Delivery or Post Goods Issue
3. Create Subcontract Chal lan w.r.t t he Transferred Mat erial Document: (J1IF01) 2.
4.

3.
4. Pri nt of Subcont ract Challan (J1IF11)

4.

5. Goods Receipt: (MIGO)

5.
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.


Post Goods Receipt.
6. Next Goods Receipt: (MIGO)

1.
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:

7. Challan Reconci llat ion: (J1IFQ)

1.
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.

8. Completion of Chal lan: (J1IF13)

1.
Save the Challan.

9. Li st of Subcontracti ng Chal lans.

1.

11.2 Subcontract Process where Scrap is received from Vendor
1 Create Subcontract Purchase Order Document type(NB) / Pur.org ./ Pur.group / Co.code / Material / Qty. / Price / Plant /
Requister / Delivery date / Vendor no ./ Tax code / Item catgory(L)/Components
ME21N Purchaser /
Buyer
2 Create transfer Posting of materials sent out for sub-
contracting with reference to Subcontractor PO.
Personnel
4 Print Subcontract Challan Go to transaction of Challan Change Take print andsave. J 1IF11 Excise
Personnel
MIGO Stores
6 Receive scrap material from Vendor. Receipt of Scrap Material by MvT 542. MB1B /
MIGO
Stores
7 Reconcile Subcontracting challan Material Document (MvT 101/542) / Challan / Fiscal year J 1IFQ Excise
Personnel
8 List of subcontracting challans List click on Anexure IV J 1IFR Excise
Personnel
9 Complete/Reverse/Recredit Subcontracting challan Complete the challan J 1IF13 Excise
Personnel
10 Display Subcontracting challan Display Subcontracting challan J 1IF12 Excise
Personnel
11 Scrapping the Material Whatever the material received from Vendor as scrap, is to be scrapped with MvT 551
to a cost center.
MB1A /
MIGO
Stores

11.3 Subcontract Process: Return Delivery To Vendor
1 Create Subcontract Purchase Order Document type(NB) / Pur.org ./ Pur.group / Co.code / Material / Qty. / Price /
Plant / Requister / Delivery date / Vendor no ./ Tax code / Itemcatgory(L)/
Components
ME21N Purchaser /
Buyer
2 Transfer Posting of sub-component material to Vendor. Select the material, and do PGI or create Delivery. ME2O Stores
Personnel
Personnel
MIGO Stores
6 Do the reconcilation of material document Material document /challan number/year J 1IFQ Excise
Personnel
7 Iftherecivedmaterialfailsinquality& need to send back to Vendor -return
delivery
122 and 544 movement type /plant / material docuemt number / MIGO Stores
8 Create new subcontracting challans for this outgoing materials, as this
material had come against old challan, and that challan is already
reconcilled.
Material documents number / excise group/ series group J 1IF01 Excise
Personnel
9 Complete/Reverse/Recredit First Subcontracting challan Complete the challan J 1IF13 Excise
Personnel
10 Recive back the return delivery materialsent by vendor 101 and 543 movement type/ challan number/ year MIGO Stores
11 Again Reconcile & complete the return delivery challan. Material document/ challan no./fiscal year J 1IFQ Excise
personnel
11.4 Subcontract Process: Cancellation of Goods Receipt
1 Create Subcontract Purchase Order PO with sub components. ME21N Purchaser /
Buyer
2 Create transfer Posting of materials sent out for sub-contracting with reference to Subcontractor
PO.
Personnel
4 Print Subcontract Challan Go to transaction of Challan Change Take print and
save.
J 1IF11 Excise
Personnel
5 Post goods receipt (MIGO) PO NO./Delivery Note/Posting date/Excise Invioce Tab -
Refer subcontracting challan /storage location
MIGO Stores
6 Do the reconcilation of material document Material document /challan number/year J 1ifQ Excise
Personnel
7 Ifthe recived material is not with good quality & Goods Receipt needs to be cancelled. Cancellation /material document/102 and 544 movement
type /plant / material docuemt number /
MIGO Stores
8 Create new subcontracting challans for this outgoing materials (as this is cancelled/rejected), as
this material had come against old challan, and that challan is already reconcilled.
Material documents number / excise group/ series group J 1IF01 Excise
Personnel
Personnel
10 Recive back the cancelled delivery material sent by vendor against new challan. 101 and 543 movement type/ challan number/ year MIGO Stores
11 Reconcile the challan Material document/ challan no./fiscal year J 1IFQ Excise
personnel
12 Complete the cahllan Challan number/fiscal year J 1if13 Excise
personal
11.5 Subcontracting over consumption or under consumption
1 Create Subcontract Purchase Order PO with sub components. ME21N Purchaser /
Buyer
2 Create transfer Posting of materials sent out for sub-contracting with
reference to Subcontractor PO.
Personnel
Personnel
5 Post goods receipt (MIGO) PO NO./Delivery Note/Posting date/Excise Invioce Tab -Refer
subcontracting challan /storage location
MIGO Stores
6 Do the reconcilation of material document Material document /challan number/year J 1IFQ Excise
Personnel
7 Ifthe material is over consumption do subsequnet adjustment Subsequent adjustment / parchase order / 121and 543 movement type/ Qty MIGO Stores
8 Do the reconcilation with this Doc #. Material document/challan no. J 1IFQ Excise
personnel
Personnel
10 Ifthematerialisunderconsumptiondo subsequnet adjustment . 544 movement type will get triggered/purchase order number MIGO Stores
11 Create new challan w.r.t the 544 MvT Document. Create new challan w.r.t the 544 MvT Document. J 1IF01 Excise
personnel
12 Post goods receipt (MIGO) MIGO Goods Reciept MIGO
12 Reconcile the challan Material document/ challan no./fiscal year J 1IFQ Excise
personnel
13
Complete the cahllan Challan number/fiscal year J 1IF13 Excise
personnel
11.6 Challan completed 180 days reverse and recredit the challan
1 Challan Reverse Challan No./Fiscal year J 1IF13 Excise Personnel
2 Option I: Recive the material back . 542 movement type/ material/ vendor MIGO Stores
3 Reconcile the challan with 542 Matrl Doc. Materail doc / Fiscal year / challan no/Excise group / Series group J 1IFQ Excise Personnel
4 Complete & Recredit the challan. Challan number /fiscal year J 1IF13 Excise Personnel
5 Option II: Receive the Material after 180 days as finished goods as per PO. MIGO Goods Receipt MIGO
6 Reconcile the challan with above GR Doc. Materail doc / Fiscal year / challan no/Excise group / Series group J 1IFQ Excise Personnel
7 Complete& recredit the challan. Challan number /fiscal year J 1IF13 Excise Personnel

12 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 IPat 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:DuringPostofExciseInvoice, the system doesnt allow to increase the Excise Duty Value.
Answer: The change in duty values needs to be done in Change Excise Invoice transaction @ J 1IEX and not during Posting of Excise Invoice.
Question : I have to specify BED manually and not through condition records.
Answer:Themanualexcise amount for BED can be specified in the Pricing Procedure ( PO Condition tab), wherein it will update the Tax Procedure.

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verynice work pramod kumar.
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COUNTRY INDIA VERSION

1 THE COUNTRY INDIA VERSION(CIN)

2 ESSENTIAL MASTER DATA FOR EXCISE

2.3 Material Assessable value

2.5Vendor Excise details

3TAX CONDITION RECORDS

3.9 Tax Conditions to be Maintained

4 Procedure for Claiming CENVAT for Raw Materials

Step Descripti on Input s T.Code Role

4.1 Create the Purchase Order

4.2.2 Option II: Capture Excise Invoi ce seperately

Step Descripti on Input s T.Code Role

7 Procedure for Claiming CENVAT for Raw Materials without Material ID

Step Descripti on Input s T.Code Role

10 Procedure for CENVAT Reversals

10.3 Purchase Order Returns

10.4 CENVAT Adjustment Postings (J 1IH Excise J V)

11.1 Normal Subcontract Process

Post Goods Receipt.

6. Next Goods Receipt: (MIGO)

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