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Country Version India Comes With Four Pricing Procedures As Follows
Country Version India Comes With Four Pricing Procedures As Follows
Country Version India Comes With Four Pricing Procedures As Follows
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
ECC Number
Specifies the organization's ECC number.
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.
Example
Additional Excise duty is leviable in case of textile products, tobacco and sugar.
This information is used to split the transfer postings' items into multiple subcontracting challans.
This information is also shown when you post the vendor's excise invoice.
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.
The rest is posted the CENVAT on hold account, for use in the following year.
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.
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 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.
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.
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
Blocked stock
Stock transport order
Consignment stock
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.
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.
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 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.
Activities
Customizing
Make the settings in Customizing Basic for Logistics General, by choosing Taxes on Goods
Movements AccountIndia Settings Determination.Excise Duties Using 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.
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.
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.
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)
Even though this functionality is available in enterprise version, a small config step has to be made in Screen
Sequences for Material Master.
1. Go to IMG Define Logistics General  Material Master  Configuring the Material
master ScreenStructure of Data Screen for each 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 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.