What are the scenarios in SAP CIN?

Question

Hi,
I need to work on CIN.
Can you give the total scenarios on CIN on MM and SD side.
Sateesh

Answer 1

Hello,
Before I am going to explain what cenvat is, you have to understand the Indian tax central excise duty(BED). It is called as basis excise duty. Every manufacturer is liable to pay the excise duty in various kinds like Basis excise duty, Special excise duty, Additional excise duty etc.,
Just think over a product which is reached to an end user, how many manufacturing activities are done. So to reduce the tax burden of the end user the Govt of India has introduced the MODVAT scheme which is now called CENVAT scheme. Based on this, if any manufacturer purchased a material, which is duty paid and if it is used for his further manufacturing activity, he can avail this as credit in his book based on the central excise invoice. At the time of selling his manufactured goods, he is liable to pay the excise duty. He can adjust the credit which he has taken into his books and pay the rest.
Ex: Cenvat availed at the time of purchased various goods Rs.20,000 (excise duty) and Cenvat payable for his product at the time of sales Rs.25,000(excise duty) he will pay only Rs.5,000 through cash deposit in PLA.
A/P Module (During Purchases):
Purchase of Inventory Raw Material (100 KGs@10)     : 1,000/-
Add: Tax on Purchases (VAT or CST)           :    100/- (10% on 1,000)
                                          Total            1,100/-               
Add: Excise Duty u2013 10% on 1100                110/-
Total amount payble to Vendor                  1,210/-
                         ======
NOTE : If we purchases raw material with in the state then we need to pay VAT. If we purchase raw material from other state then we need to pay CST.
1) Purchase Order u2013 ME21N : No accounting entry will be generated
2) Goods Receipt u2013 MIGO:
Inventory Raw Material A/c Dr 1,000/-
To GR/IR Clearing A/c 1,000/-
Note-1: RG23A Part-I needs to be updated in TC:J1IEX_C. Here, 100 kgs needs to be updated in this register.
Note-2: RG23A Part-II needs to be updated in TC: J1IEX_P. Here, 1,000/- value needs to be updated in this Register. The following entries will be generated.
Cenvat Reveivable A/c Dr 110/-
To Cenvat Clearing A/c 110/-
3) Invoice Varification u2013 MIRO:
GR/IR Clearing A/c Dr 1,000/-
To Cenvat Clearing A/c Dr 110/-
To VAT/CST Recivable A/c Dr 100/-
To Vendor A/c 1,210/-
A/R Module (During Sales):
Sale of Finished Product (200 KGs@10)          : 2,000
Add: Tax on Sales (VAT or CST)                           200 (10% on 2,000)
Total                           2,200/-
Add: Excise Duty                          220/- (10% on 2,200)
Total Amount Recivable from Customer             2,420/-
                                                                                =======
Note: VAT needs to be received from the customer when we sold finished product with in the state. CST needs to be received from the customer when we sold finished product in other state.
1) Sales Order: No accounting entry will be generated
2) Delivery:
Cost of Goods Sold A/c Dr
To Finished Product A/c
3) Billing:
Customer A/c Dr 2,420/-
To Sales A/c 2,000/-
To CST/VAT Payable A/c 200/-
To Cenvat Suspense A/c 220/-
4) Transfer of Cenvat suspense to cenvat payable A/c:
Cenvat Suspense A/c Dr 220/-
To Cenvat Payable A/c 220/-
5) Deposit of amount in PLA (Personel Ledger Account):
P L A A/c Dr 1,00,000/-
To ICICI Bank A/c 1,00,000/-
6) To avail cenvat credit (from purchases) and remaining amount should be deducted from PLA Deposit:
Cenvat Payable A/c Dr 220/-
To Cenvat Receivable A/c 110/-
To PLA A/c 110/-
7) VAT/CST Payable to Govt:
VAT/CST Payable A/c Dr 200/-
To VAT/CST Recivable A/c 100/-
To ICICI Bank A/c 100/-
Go through the some of following registers:
1) RG23A Part-I     : To update the quantitiy of consumable goods
2) RG23A Part-II     : To update the value of consumable goods
3) RG23C Part-I     : To update the quantity of capital goods
4) RG23C Part-II     : To update the value of capitial goods
Thanks
Para