Dealer CENVAT Scenerio

I am having dealer scenerio.
While making PO we are not aware what will the excise amount, hence we have created PO with base value inclusive of Excise.
Base Value = 100 (90+10)
VAT $ 4% = 4
Total PO Value = 104.
Now while MIGO (Exice posting)
We will correct the base value Rs. 90 and manually enter the excise figures of Rs.10. and will mark MRP tick at Misc tab.
While miro
I am facing problem.
1) the system is picking up Rs. 100 ***. value at line item, if i dont change the amount move ahead with transaction, the system is passing entries like
GI/IR 90 Dr.
Material 10 Dr
CENVAT 10 Dr
VAT ac 4 Dr
To Vendor 114
This entry is incorrect,
further, if i am correcting the *** value to Rs. 90, then the system is passing following entry
GI/IR 90 Dr.
CENVAT 10 Dr
VAT ac 3.60 Dr
To Vendor 103.60
This entry is also incorrect.
the system is not considering the manually entered excise figures while calculating the VAT amount.
Please advice
Regards
Pranav Dave
Edited by: pranav.dave on Apr 29, 2011 5:11 PM

Hi,
You have:
Material value with Dealer Margin= 90
Excise: 10
VAT @ 4% = 4
Total Value => 104.
Go for creation of PO for Dealer Vendor with Base Price as 100/- by selecting tax code which is having VAT as 4% (Total PO value will be 104/-)
& then do MIGO, select MRP indicator in miscellaneous Tab, Enter Assessable value 90/- as in Excise tab Item level and enter the excise values BED, ECess , SECess ( total 10) manually and then check all values & save the document.
Finally go for MIRO, use proper tax code( Here tax code will be different then PO which will be combination tax code with excise duty +VAT), checking calculate tax, edit base value as 90/-enter the amount in header as proposed by the system (104/-), simulate & post the document.
Note:
Check tax procedure: See 362 routine is there in u201CBasTypeu201D column for BASB condition type and routine u201C4u201D is there in u201CCalTypeu201D column for last row which will be u201CNet Price + Excise + Local taxu201D
Regards,
Biju K

Similar Messages

Normal material cenvat

Dear Experts,
I have anMaterial cenvat Scenerio with two case
1)The material which is coming from vendor
which we can take cenvat the material which is comming to factory
2) The material which is coming from vendor which we wont take cenvat as the material which is going to job worker and Job worker will take Cenvat
Please suggest me with the two scenrios how the Cenvat and Non cenvat account get posted
Mainly how the linking to accounts takes place.Please sugegst me

Hi,
CENVAT in case if Materials are sipplied to Subcontractor: -
CENVAT Expense A/c (BED) - Dr
CENVAT Expense A/c (ECS) - Dr
CENVAT Expense A/c (H&SECess) - Dr
CENVAT Clearing A/c - Cr
In this case create a Subtransaction Type (For e.g. "SB") and do necessary A/c determination config for ETTs GRPO, OTHR, EWPO, CAPE and DIEX in conjunction with Subtransaction Type "SB"
and select Subtransaction Type "SB" during Goods Receipt of materials for Subcontractors

Material cenvat

Dear Experts,
I have anMaterial cenvat Scenerio with two case
1)The material which is coming from vendor
which we can take cenvat the material which is comming to factory
2) The material which is coming from vendor which we wont take cenvat as the material which is going to job worker and Job worker will take Cenvat
Please suggest me with the two scenrios how the Cenvat and Non cenvat account get posted
Mainly how the linking to accounts takes place.Please sugegst
Thanks,
Tiru

Hi,
1)This is standard process, which you can know by searching previous postings on the same issue.
You have to config the required settings.
2) This case is intersting.Is it really required ..?
In india unless the material is used in manufacturing for other product, then only those can avail or take the excise credit.Just read excise rules/books.
regards

Rejection to second Stage dealer

Dear Gurus,
This is a scenario where we have taken material from a second stage dealer, with all the MRP indicator in GR and all the process as per the dealer CENVAT process.
Now we to send the material back to the supplier through return PO. Please explain the process.
Regards,
Ashish

this can be done by selecting GET EXCISE INVOICE in J1IS.
Solved.

Cenvat Clearing not coming in MIRO in case of Dealer Invoice

Hi,
This is a scenario of purchasing from dealer wherein the exact excise duty and VAT/CST is not known while creating a Purchase Order.
I did the following steps
Created PO with
One item of 5 quantity @ 1000 INR (Total Base Value = 5000 INR)
Assigned a tax code (V3) with Nil Excise and 5 % VAT Deductible
Did Goods Receipt (with Capture Excise Invoice Only)
Selected MRP Indicator
In Excise Tab at Item Level
Changed Base Value from 5000 to 4485 INR
Put BED as 500, ECS as 10 and SEcess as 5 INR
Posted the Excise Invoice in J1IEX, here the Cenvat Clearing Account was credited with 4485 INR
Now while trying to do Invoice Verification in MIRO
Again changed the base Value from 5000 to 4485 INR and selected the same Tax Code (V3) which was used in PO
Now the system is not considering Cenvat Clearing Account (Excise Duty) and since Excise duty is not being taken into account, the VAT is being calculated on the basis of Base Value (4485 INR) only not on the Base Value + Excise Duty
Please give me ideas to resolve this issue
Thanks in advance

These are the details about the Tax Code (V3) being used and its condition record
Procedure          TAXINN
Tax Code          V3
Desciption          Excise Nil and VAT 5%
Excise Duty          JMOP     0
Set Off          JMX1     100
EduCess          JEC1     0
EduCess Set Off     JEX1     100
SEduCess          JSEP     0
SEduCess Set Off     JHX1     100
VAT (RM) Claimable     JVRD     5

Dealer Excise Invoice-Issue while posting MIRO

Dear All,
Today i was doing Domestic procurement with Dealer for Gas Cylinder. In PO we entered total value which includes Excise amount also (1000+103)& VAT @ 14% (154,42).
While doing GR i selected as Only captured excise inv, checked MRP indicator.
Changed the bse value to 1000, entered BED as 100, E Cess as 2 & SEcess as 1.
The accounting entries were correct, Inventory is posting with Rs 1000
Posted excise invoice in J1IEX, the values were coming from GR, its correct and the acc entries were also OK with 103 Cenvat clearing acc Cr & Excise acc Dr.
While posting MIRO, I am facing problems...
In line item i am getting as 1103 Base value...
VAT is calculating on (1103+103) @ 14% 168.84,
so total value is 1271.84
When i simulate, its showing
Vendor 1271.84 Cr
GR/IR clg acc 1000 Dr
Material 103 Dr
VAT 168,84 Dr
There is no cenvat clearing account here
Please help me how to resolve this.
Regds,
CB
When i simulate

Hi,
have you mainatin 100% setoof condition check it it should be there
check MIRo posting date and excise invoice posting date
check condition record validity in FV13
Regards
Kailas Ugale
Edited by: kailasugale on Feb 10, 2012 12:01 PM

Plant as a Dealer

Hi Experts,
Could you some guide me about the scenarios when Plant woul d hold the Excise Resistration as Dealer.
1.Import Purchase in Plant (Dealer) - How to pass on CVD to customer while selling those import Product. Is there any need to introduce new CVD condition in Sales pricing ? and how the accouting impact will be?
2.Dealer Purchase in Plant (Dealer ) i.e second stage Dealer - how to handle?
3.Third Party - Plant (Dealer ) purchase from Vendor and directly ship to customer - How to handle and accounting impact?

1-Since you are a Dealer yourself, your Plant will be registered as a Depot i.e. using RG23D Register.
Since you are a trader (Depot) , All the duties (including CVD) should get Inventorised. If We want Duties To be Inventorised, we need to mantain it as "Non Cenvatable" in J1ID and also add the Non Cenvatable option in Movement type assignment for 101.
The Depot Sales procedure , should be able to handle the Sales part i.e. picking of teh CVD values in the Pricing procedure from teh RG23D entry.
2- Dealer:
Again, here the Duties should be Inventorised. But you cannot show actual Duties at time of PO.
In FV11 , maintain 0% for Inventory Duty conditions JMIP,JEC1 and JSE1 , maintain 100% for Ivnentory Total conditions : JMX2,JEX2,JHX2.
In MIGO Base will default as PO Price,We will change it to Actual as per vendors Invoice also Enter BED,Ecs,Seces as per Invoice. Do NOT tick MRP indicator
The total PO Price+ Excise will be posted to Inventory.( Since there is no concept of Part 2 posting in Depot).
I worked on this 4 years ago, and the clients requirement was that in their Trading depot, all Duties /excise should be Inventorised, because they were not a manufacturing unit so there was no "cenvat" as such.

Cenvat credit of additional duty of customs

As per importer    price of 10 units
Basic       100
Excise       10
Ecess         2
Shecess     1
AED            4.52
We bought   5 units from him   we treat it as a case where tax code inclusive of all duties where a backward calculation is used in conditions in Purchase order.
problem is that we are purchasing a capital item.
duties cenvat crdit available for different duties other than AED is 50 this year and 50 % next year. For AED 100 % cenvar redit should be available but that is not happening.
what I saw in one of SAP notes is to make a MM condition ZADC and activate AED in tax code but that doest not help to get AED credit avilable 100 %.
other SAP note 943767 tells a different steps for ADC.
what should we do in this case i.e what all sap notes should be checked for in system so that we can get 100 cenvat credit of AED passed on by first stage dealer of Imported goods in india using a backward calculation situation.

Hi
What pack level are u on
and if u using ECC 5 and Above , than i dont think u have to use any sap note.
In po u will have to use tax code that is have 0 % for your AED condition and 100% for AED condition total.
just like bed or ecess condition.
When u capture Excise duty for first stage delear haveing ADC , u will have to put IP in Addition excise tab near GRPO.
and in item leve material type should be other than raw material , Assect or consumables or tools.
hope u have configured IP for account determination
Onlt the trick to get 100% cenvat credit for First stage delar is to Put IP in front of GRPO and just check if u are able to c CVD indicator if it is there u have to tick that too.
hope this solves your issue

MM-CIN: Dealer Purchase with mvt types103 /105

Dear friends,
When we are buying from the dealer, he gives the quote including the excise duties & Purchase Order will be issued , the price of which includes the Excise duties and VAT/CST. When he sends the Excise Invoice at that time, he will give the details of the excise duty paid, so that we can be able to take credit in our registers
To address this, at the time of Goods receipt, excise invoice will be captured by selecting the MRP indicater in the "Miscellaneous" tab& then we will give the duty amounts as applicable. The method is suggested by the SAP in case of Dealer POs.
So, system reduces the duty amounts from the material inventory cost (GR/IR clearing account) since we claim back the duty amounts by way of CENVAT creidit. This scenorio is working fine when we are taking the Goods receipt with 101, but if we do GR with 103 & 105 system is not reducing the duty amounts from the Material Cost (BSX).
That amount is getting reduced from material at the time of Invoice. That leads to problems if we do not have sufficient stock by the time invoice is verified..
Can anyone suggest me, why system is working properly with 101 mvt, where as not with 103 & 105 combination.
103 & 105 combination is nothing but same effect as 101. What I feel is it should work but please suggest where i am doing wrong?
Your solution will help me a lot.
thanking you in advance
With Regards,
Srinivasa Prasad

Hi Srini,
Can u send the screen shot to my mail([email protected]), screen shot of GR/IR clearing, so that i can analyze the issue properly.
Cheers..
Santosh

Dealer invoice+VAT

Dear all,
In dealer invoice, we have done the process by ticking the MRP indicator and entering the excise duties manually in MIGO. During MIRO, all the values are coming correctly except VAT.
For ex:
PO base value is 10000
VAT is 400
The total PO value is 10400.
Now in MIGO we have reduced the base value to the extent of excise values by clicking the MRP indicator and then posted.
So the GR entry:
Stock A/c Dr: 9917.6(1000-Excise values(80(BED)1.6(Ecess)0.8(Shecess)
to GR/IR A/c Cr. 9917.6
Now in MIRO
The following entry is coming:
GR/IR clearing a/c dr 9917.6 dr
Cenvat clearing a/c dr 80
Cenvat clearing a/c dr 1.6
Cenvat clearing a/c dr 0.8
Vat input a/c dr 396
To Vendor a/c cr 10396
Now you can see the vat input amount instead of 400 it is coming as 396. This is wrong. Please suggest me how to make it correct.
Thanks & Regards,
A.Anandarajan.

Hi,
Thanks for your reply. We are using TAXINN. For dealer invoice only, the VAT is not getting calculated on BaseExcise duty. For normal invoices(exclusive), the VAT is getting calculated on BaseExcise duty. Please suggest me.
Thanks & Regards,
A.Anandarajan.

Dealer Excise details Capture

Guru
I want the details procedure & configuration require for dealer invoice received from vendor to capture the excise details.
Sudhir

Hi,
Hi,
In case of procurement from dealers the PO price is excise inclusive. So before goods receipt in J1IEX capture the excise with respect to Purchase order. During capture change the Excise Base amount to the Accessable value that the vendor will provide in its transporter copy. Tick the MRP indicator in the Excise header in Miscellaneous tab. Give the Excise Invoice Number, date & save it. Now During Goods receipt refer the excise invoice number & put the same date & the excise amounts will be copied from the Excise invoice. Post the goods receipt. Check the External amount in the Quantity tab in the Goods receipt document. Put that amount in the MIRO screen during Invoice verification.
Do the same for each & every line item in GR document. You will see that the VAT amount is properly calculated. The VAT amount will hit during invoice (MIRO). The CST is an inventorized item & will hit during the Goods receipt.
Pl. see the OSS Note 1104456 .You will find the Solution in this OSS Note .There is a ZIP file for this Scenerio.
Regards,
Vikas

Dealer purhcase for Manufacturing Plant

Hi Gurus,
We are trying to create PO for Trading Vendor
We can able to enter the Base Amount as per Vendor notification( Like Quotation), Excise amount we came to know at the time of Goods Receipt so we activated MRP indicator in the mics tab of GR screen. then i entered exact Excise amount and Base amount as per vendor excise invoice still i am getting the below problem. I am using tax code which is having zero values for BED, Cess, SHcess and it is calculating VAT 12.5% and 1% of surcharge of VAT as per our requirement.
We are having a problem while posting manual excise invoice for a dealer. While posting the invoice in MIRO the system debit the inventory account for the excise value instead of the CENVAT clearing account.
Can you please guide us.
Thanks in advance.
with regard,
Sudir.

Dear MM Gurus!
Dealer Purchasing is still pending , i did the process like this note only( Note No:1104456)
but in my case we having both Excise(14.42%VAT 12.5%1% surcharge On Vat)
exicse values are not flowing i.e CENVAT account values are not coming in simulation of invoice.
as per fourm result i tried everything.
Pls give solution !
with regards
Sudir.

Import procurement with dealer

we have a scenerio wherein the material is procured from a delar but he is doing import
so he cant claim the cenvat and passes on to us to claim it. But at the time of raising the PO the duties are not captured and known at GRN only so kindly advise how to handel it

Hi,Follow the below process
1. Create purchase order and enter net price (inclusive of base value and excise duties)
2. Capture excise invoice together with goods receipt through transaction MIGO, Check MRP indicator found in the Miscellaneous TAB popped up when you click on u201CMore datau201D button on Excise invoice tab at the header level in MIGO
The excise base value is defaulted as the PO price and the excise duties are zero. The excise base is changed such that the sum of the excise base value and the excise duties remain the same as the PO price. The excise base is reduced by the excise duty value and the differential amount is split amongst the relevant excise duty components.
Hence the material valuation also takes place correctly with the changed amount put as the excise base value. Otherwise this would incorrectly get inflated by the excise duty value also.
3. Invoice verification process through MIRO
Change the base value from PO Value to Assessable Value as per Vendor Invoice same as the base value of EI.

Cenvat account

hi,
please, anyone can explain.
may i know what is this cenvat account, cenvat clearing account and cenvat on hold?
can have example of these 3 accounts? what's the difference for these 3 cenvat account with PLA on hold or various PLA account like plaaed, plabed, plaecess, plased)?
point will be given. thanks
For Domestic Procurement of Raw Material
              During GR
                                      Material Stock            Dr.
                                      GR/IR clearing                        Cr.
              During Excise Invoice Credit
                                      Cenvat Account          Dr.
                                      Cenvat Clearing                     Cr.
              During Invoice Verification
                                      Cenvat Clearing          Dr.
                                      GR/IR Clearing           Dr.
                                      Vendor Payable                      Cr.
For Domestic proceurement of Capital Goods
              During GR
                                      Material Stock            Dr.
                                      GR/IR clearing                        Cr.
              During Excise Invoice Credit
                                      Cenvat Account          Dr.       (50%)
                                      Cenvat On-hold          Dr.       (50%)
                                      Cenvat Clearing                     Cr.
              During Invoice Verification
                                      Cenvat Clearing          Dr.
                                      GR/IR Clearing           Dr.
                                      Vendor Payable                      Cr

Hi,
may this will be helpful to you.
In Indian Taxing procedure, Excise Duty plays a vital role in manufacturing scenario's. Excise related configuration is known as CIN configuration. CIN Configuration is a topic in itself.
Here is some information on CIN Configuration. While it may not appear understandable as given below, it will be understood better when you check on screen.
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 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.
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 credit
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 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.
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 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? 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
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 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.
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.
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
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.
? Material Master ? 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 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.
Back to ERP Operation Home.
Transaction Codes for India TransactionActionJ1I2Prepare a sales tax registerJ1I3Create outgoing excise invoices in batchesJ1I5Update the RG 1 and Part I registersJ1IEXIncoming Excise Invoices (central transaction)J1IEX_CCapture an incoming excise invoice (excise clerk)J1IEX_PPost an incoming excise invoice (excise supervisor)J1IF01Create a subcontracting challanJ1IF11Change a subcontracting challanJ1IF12Display a subcontracting challanJ1IF13Complete, reverse, or recredit a subcontracting challanJ1IFQReconcile quantities for subcontracting challansJ1IFRList subcontracting challansJ1IHMake a CENVAT adjustment postingJ1IINCreate an outgoing excise invoiceJ1IJAssign excise invoices to a delivery for sales from depotsJ1INJVAdjust withholding tax ItemJ1INREPReprint a withholding tax certificate for a vendorJ1IQYear-End Income Tax Depreciation ReportJ1IRDownload register dataJ1ISProcess an excise invoice (outgoing) for other movementsJ1IUProcess exemption formsJ1IWVerify and post an incoming excise invoiceJ1IXCreate an incoming excise invoice (without reference to purchase order)J2I8Transfer excise duty to CENVAT accountJ2IURemit excise duty fortnightlyJ2I9Monthly CENVAT returnJ1IGExcise invoice entry at depotJ1IGACreate additional excise entry at depotJ2I5Extract data for excise registersJ2I6Print excise registers

Dealer Invoice entry

During purchase from dealer / trader I want to do excise entry . I am not entering anything in PO . I am giving Excise entry at the time of MIGO . Now please tell me at the time of MIRO how can the tax liability be booked .

Hi,
In case of procurement from dealers the PO price is excise inclusive. So before goods receipt in J1IEX capture the excise with respect to Purchase order. During capture change the Excise Base amount to the Accessable value that the vendor will provide in its transporter copy. Tick the MRP indicator in the Excise header in Miscellaneous tab. Give the Excise Invoice Number, date & save it. Now During Goods receipt refer the excise invoice number & put the same date & the excise amounts will be copied from the Excise invoice. Post the goods receipt. Check the External amount in the Quantity tab in the Goods receipt document. Put that amount in the MIRO screen during Invoice verification.
Do the same for each & every line item in GR document. You will see that the VAT amount is properly calculated. The VAT amount will hit during invoice (MIRO). The CST is an inventorized item & will hit during the Goods receipt.
Pl. see the OSS Note 1104456 .You will find the Solution in this OSS Note .There is a ZIP file for this Scenerio.
Refer
[Dealer Excise details Capture]
Regards,
Vikas
Edited by: Vikas Mayekar on Jul 30, 2009 2:33 PM

Dealer CENVAT Scenerio

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