Acin Ecc5 Sd 0005

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Notes © SAP AG 9 - 1 WINLEN SAP AG 2005 Sales Process Overview of the sales process Sales processes Sales from Factory - Configuration Cancellation of Excise Invoice Excise Invoice Printing Fortnightly Utilization Other features Contents:

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CIN

Transcript of Acin Ecc5 Sd 0005

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© SAP AG 9 - 1WINLEN

SAP AG 2005

Sales Process

Overview of the sales process

Sales processes

Sales from Factory - Configuration

Cancellation of Excise Invoice

Excise Invoice Printing

Fortnightly Utilization

Other features

Contents:

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After completing this unit, you will be able to:

Understand Excise related sales processes

Understand Sales Tax related sales processes

Run the sales processes

Sales Process : Unit Objectives

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Sales Process : Business Scenario

Removal of goods

Free Supplies

Excise Invoice Cancellation

Fortnightly utilisation

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Removal of Goods - Overview

Full Compliance across the Distribution Process Full Compliance across the Distribution Process

Removal of Goods

From Factory From Depot

Sale Transfer to Factory

Return to Vendor Transfer to Depot

Return from Customer Transfer to Subcontractor

Sale Transfer to Factory

Return to Vendor Transfer to Depot

Return from Customer Transfer to Subcontractor

Removal of goods - Factory Sale

– Generation of excise invoice at the time of removal of goods

– Printing of Excise Invoice based on Customizable Layout Set – Fortnightly utilization of CENVAT– RG23D register entries at depot during delivery

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CENVAT Availment & Utilization

CENVAT on holdfor Cap Goods

CENVAT Account

VENDOR EXCISEINVOICEPROCESS

GOODS RECEIPT

DESPATCH

SALES EXCISEINVOICE PROCESS

Excise DutyPayable A/C

PLA A/C

DEPOSIT FUNDSIN PLA ACCOUNT

Credit PLA Account

SELECTREGISTER Excise duty

UtilizationTransaction

ON-LINE TRANSACTIONS

FORTNIGHTLY TRANSACTIONSCredit ED Payable A/c

(Consolidated Entry)

Debit ED Payable A/c

Debit PLA A/c

Debit CENVAT A/c

Credit CENVAT A/c

Credit CENVAT on-hold A/c

CENVAT accounts are credited during the procurement cycle.

During removal of goods, excise invoice is created and printed. Also the duty liability is booked.

During fortnightly payment, the credit available in the CENVAT/PLA accounts is utilized.

Immediate utilization of CENVAT during excise invoice creation through customizing based on series group.

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Sales from FactorySingle Excise Invoice and Commercial Invoice

Separate Excise Invoice and Commercial Invoice

Free Supplies

Sales - Processes

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Sales from Factory - Process

Batch Utilization

•Excise Invoice Creation in Background•Automatic Determination of Excise and Series Group•Provision for immediate utilization of CENVAT•Posting to Profitability segment

DELIVERY

GOODS ISSUE

COMMERCIAL INVOICE PROFORMA INVOICE

EXCISE INVOICE GENERATION

AND PRINTING

EXCISE INVOICE GENERATION

AND PRINTING

COMMERCIAL INVOICE

Streamlined ExciseTax Processing

Excise invoice can be created automatically in the background during creation of billing document based on customizing for excise group

Posting of excise invoice to profitability segment if CO-PA has been set up in the system.

The profitability segment in the excise invoice is derived from the item profitability segment in the billing document

Immediate utilization of CENVAT during excise invoice creation through customizing based on series group.

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Sales Order

Delivery

Excise Duty posting

Proforma Invoice

Excise Invoice Printing

Commercial Invoice

Separate Commercial and Excise Invoice

Posting to Excise duty payable account

Posting to CENVAT accounts for immediate Utilization

Excise invoice can be prepared and sent along with the goods.

The document flow in such a case would be OR - > JF - > JEX - > F2 . Here OR is the sales document type, JF is the delivery type ( JF is a copy of standard delivery type LF) , JEX is the Proforma billing document type ( JEX is a copy of standard Proforma F8 ) and F2 is the invoice.

A Proforma Excise Invoice of type ‘JEX’ can be created only if Goods issue has been completed for the Delivery. The system prevents creation of multiple Proforma Excise Invoices.

The Proforma Excise Invoice serves as the basis for MODVAT utilization. This document has to be sent along with the Goods dispatched in case the commercial invoice is not yet created.

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Sales Order

Delivery

Excise Duty posting

Invoice

Invoice Printing

Single Commercial and Excise Invoice

Posting to Excise duty payable account

Posting to CENVAT accounts for immediate Utilization

The document flow in such a case would be OR - > LF - > F2 .

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Free Supplies

Can be combined with a normal order

100% discount condition added to the item pricing

Item category changed to free-of-charge

Excise posting done

In certain cases, materials are supplied free of charge while excise duty is payable on them e.g., free supplies as volume discounts. Although the material itself is free of charge, the vendor has to pay excise duty, since excise duty, by definition is paid on the manufacture of goods

Material can be sent free of charge, in such a case the excise should be calculated and paid at the time of delivery but it is not charged to the customer.

If the material is to be sent free of charge, then in the pricing procedure of the reference document against the discount condition (last condition in the pricing procedure) maintain 100%. The excise duty amount is calculated as in case of normal sales but the customer is not billed for anything because of the 100% discount. The excise utilization transaction picks up the excise value mentioned in the reference document and posts it.

A separate tax code is created for Free Supplies.

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Sales from Factory - Configuration

Document FlowOR LF F2

OR JF JEX F2

Define Allowed Delivery types to Billing types

Define Invoice split through data transfer formula in copy control

Delivery types can be assigned to billing types though the following menu path IMG -> Logistic General -> Tax on Goods Movement -> India -> Business Transactions -> Outgoing Excise Invoice -> Assign excise invoice billing type to delivery type

Maintain the following entries

– JF – JEX– LF – F2– LF – JEX– NL – JEX

Excise duty payable account needs to be configured in CIN related Settings.

Maintain G/L accounts against transaction type DLFC

Negative balances should be allowed for this account in FI/GL configuration

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Copy control formula for validation

Two possible requirements areWhen excise and commercial invoice are the same

Copy Control Formula : OR LF F2

When excise and commercial invoice are difference. (ie) Multiple excise invoice for one commercial invoice

Copy Control Formula : OR JF JEX F2

Sales from Factory - Configuration

The following formulas are provided to establish necessary controls required for generating the excise invoice. Formula Type Default Level Remarks 310 Copying

Req JF – F2 Item To ensure excise posting take place before billing

311 Copying Req

JF – JEX Header

To ensure post goods issue is done for delivery doc To ensure duplicate excise doc does not get created

350 Updaing the Official numbering

JF – F2 Item The Official Document number will be updated based on VAT / BOS.

351 Split Formula

JF – F2 & JF – JEX

Item Split items of a delivery into multiple billing / proforma documents. Split is based on Dist Channel + Div + Delivery number + Excise Registration ID + Chapter-ID + Max no of items (specified in CIN customising)

For further details on routine #350 OSS Note no. 607851 can be referred.

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Sales pricing (Formula based Condition Types)Pricing procedure - JFACT

Tax procedure – TAXINJ

Excise based on material and customer data

Manual over-ride for excise value

Sales tax rate from the tax code

VAT , CST - LST determination based on tax classification

Sales from Factory - Configuration

TAXINJ procedure is attached to the country IN and a formula 352 in the calculated call of TAXINJ looks up CIN master tables and calculates the excise duty

No jurisdiction codes are assigned to Tax Procedure TAXINJ

JFACT pricing procedure has a condition UTXJ for which the access JIND has been delivered by CIN. The condition category of UTXJ is 1.

In JFACT pricing procedure all other tax conditions have conditions category as ‘D’.

The tax code relevant for the Sales order is picked up from the condition record of UTXJ

The tax code for VAT/LST/CST should be created individually.

The tax rate will be brought in Sales order through the Tax code determined in UTXJ condition type.

The Tax code will be determined based on the Plant Region / Customer Region and Tax Classification of the Material and Customer. Please note that the Access table 368 is the standard access table which has all these fields. The Access Sequence JIND used for the UTXJ condition type must have the access table 368.

Maintain Prices in

–Sales and Distribution – Master Data – Pricing – Prices –Material Price – Maintain PR00 price–Others – Maintain JEX2, JEXA, JEXS, JCED, JECX–Others – Maintain UTXJ

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Sales pricing (Conditions record based Excise Condition Types)Pricing procedure - JINFAC

Tax procedure – TAXINN

Excise based on condition technique only

Excise based on material and customer data

Chapter Id needs to be maintained in IMG

Sales from Factory - Configuration

As of release R/3 Enterprise, TAXINN procedure can also be used for country IN

No jurisdiction codes are assigned to Tax Procedure TAXINN

During Pricing, Excise & Sales Tax are determined based on only condition technique

JINFAC pricing procedure has excise condition types with access sequences, so that the condition records for calculating excise can be created for these conditions in SD through VK11.

The chapter-ids will have to be maintained in the Customization option – IMG -> Logistics General -> Tax on Goods movements -> India -> master data –> Maintain Chapter Ids.

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Sales pricing (Conditions record based Excise Conditions)

Pricing procedure - JINFAC

Tax procedure – TAXINN

Manual over-ride for excise value

No excise indicator required for customer

Sales from Factory - Configuration

Maintain the Chapter ids for the material in the additional tab for CIN related data in Foreign trade import as well as Foreign trade export tab in material master maintenance.

Customer add on data for CIN also need to be maintained in the Customer master, however, customer excise indicator can be ignored now as all the conditions are based on condition technique and not on formulae for calculating excise

For each element of Excise there are three conditions – one percentage condition, one quantity based condition and one total condition which give the total duty as the sum of the other two.

For example:

– Basic Excise duty percentage is mapped to condition – JEXP– Basic Excise duty quantity is mapped to condition – JEXQ– JEXT gives the sum of JEXP and JEXQ to give the total excise duty

Similarly conditions for Additional Excise, Special Excise and Cess need to be maintained.

All these conditions are ‘Discount and Surcharge’ conditions and are posted using the Accounting key EXD

All excise conditions are determined using the access JEXC

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Sales pricing (Conditions record based Excise Conditions)

Pricing procedure - JINFAC

Tax procedure – TAXINN

Sales tax rate from the tax code

CST - LST determination based on tax classification

Sales from Factory - Configuration

Since the Tax rates are determined through the Condition record the tax code will not have any rates. Even if you put the rates, the rate will disappear once you save the Tax code.

You may create only one tax code SD and put it in the Condition Record.

Sales Tax conditions are

Central Sales Tax – JCST and JCSRLocal Sales Tax – JLST and JLSRVAT Condition – JIVPCST in VAT Regime - JIVC

All these are tax conditions are posted with the account key MWS or MW3

The Account key for these conditions should be created both in SD and FI. The condition types will be non statistical condition in SD Pricing Procedure JINFAC. The GL account assignment for the account key will be assigned in FI. When the system find the condition as Tax condition then it uses the same account key assigned in SD Pricing procedure and determine the GL account from FI account key.

The Central Sale Tax can be determined using the access JCST and Local Sales Tax can be determined using access JLST

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Sales pricing

Concessional Taxes

Tax Procedure TAXINJ with Pricing Procedure JINFAC

Tax Procedure TAXINN with Pricing Procedure JFACT

Sales from Factory - Configuration

Concessional taxes are calculated based on tax classification fields.

During transaction the tax classification may be changed to show the new tax status. This will result in a new tax calculation.

Since the tax rates are maintained in the Tax code and the tax codes are determined based on the Tax classification. The condition record for UTXJ should be created with the new classification with different tax code.

The Concessional taxes for TAXINN will not be working in the similar way of changing the tax classification as there is no tax code concept in the TAXINN Procedure.

Procedure TAXINJ can be used with both JFACT and JINFAC

For use of JINFAC with TAXINJ, the excise condition types present in TAXINJ should also be present in JINFAC with the zero base value

Further, the duty total condition types in JINFAC should also be changed to JEX2, JEXA, JEXS, JCED, JECX. These are Discount and Surcharge condition types

Similarly, procedure TAXINN can be used with JFACT and JINFAC

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Sales from Factory – Configuration

Menu Path: SPRO Logistics General Tax on Goods Movement India

Master DataMaintain Form Types

Form Types Maintenance– In this IMG activity, you can define which form types you want to record in the system. You can only

use form tracking for the form types that you enter here.

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Sales Order

Delivery

Excise Invoice Creation

Invoice

Invoice Cancellation

Cancellation of outgoing excise invoice

Cancellation of excise invoice made simple

Reversal of excise invoice without marking it for cancellation

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Excise Invoice Printing

Outbound excise invoice printing facility provided

Selection based on Excise invoice numbersExcise year Excise Invoice Date Billing document Series Group Plant

Tracking of Printed Excise Invoice facilitating reprint of Excise Invoice

To access this function, you can use transaction J1IP

Customize the output for billing documents as shown:

Sales and Distribution (SD) Basic Functions Output Control Output Determination Output Determination Using Condition Technique Maintain Output Determination for Billing Documents.

You can use output type J1I0 and the SAPscript form J_1I_EXC_INVOICE. The driving program is J_1IEXCP. The output determination has been set up for the billing document that is used as the excise invoice reference.

Maintain condition records for the output

Logistics Sales and Distribution Master Data Output Billing Document Create. This ensures that output gets copied to all the excise reference documents.

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Fortnightly Utilization

Facilitates payment of duty accumulated.

IncludesDisplay of pending invoices

Option for Posting date

Posting to a Business area

Selection based on a range of dates

Optionally, Selection based on a range of invoices

Option of Utilizing the Service tax Credit.

Option for Payment of Service tax from Cenvat

Facilitates Utilization strategy based on customization settings

Posting of TR6 Challan entry to PLA account

Transaction code for fortnightly utilization is J2IUN

Payment of duty accumulated .

Normal sales

For other movements

Reversals for material write-off, material non-production and other adjustments

Payment of Duties from Service tax.

Payment of Service tax from Cenvat

Consolidated debit entry is posted in the Part 2 table

Posting of TR6 Challan entry can be done to the PLA account using transaction J1IH

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Fortnightly Utilization

Option for Cenvat Payment from Service Tax

Option for Service tax Payment from Cenvat

Service Tax / ECS Credit Account

Service tax / ECS Payment account

While Paying the Cenvat from Service tax the Service tax / ECS on Service tax credit account should be entered manually.

While Paying Service tax from Cenvat account the Service tax / ECS on Service Tax Payable account should be entered manually.

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Fortnightly Utilization

The top of the screen is the duty Payable and bottom of the screen is Available balance. You may distribute the amount to various accounts.

Once you distribute all the amounts to various accounts then the duty at the top will show as Green.

Select the other duty and click on the Select Duty icon to utilize the next duty.

Once you utilize all the Duties then only the Save Icon will be active.

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Other Features

Excise Invoice in Background

Invoice Split

Excise Document Flow

Utilization due list

Batch Utilization

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Excise Invoice In Background

Excise invoice created automatically in background during creation of billing document

Feature made optional and triggered based on customization settings

Excise group and Series group automatically determined based on customization

Provision to print excise invoice immediately after automatic creation of excise invoice

This functionality facilitates the creation of the outgoing excise invoice in background at the time of creation of billing document.

After the creation of excise invoice system prompts for printing .

Effects on Customizing

IMG -> Logistic General -> Tax on Goods Movement -> India -> Basic Settings -> Maintain Excise Groups

Mark the 'Create excise invoice in background’

IMG -> Logistic General -> Tax on Goods Movement -> India -> Business Transactions -> Maintain Default Excise group - Series group determination

For export sales, maintain whether under bond, no bond, deemed exports

Optionally, Maintain sub-transaction type

Automatic determination of excise and series group

During creation of outgoing excise invoice, excise and series group along with sub-transaction type and export type can be automatically determined by maintaining appropriate customization

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Sales Order

Delivery

Excise Duty posting

Proforma Invoice

Excise Invoice Print

Commercial Invoice

Excise Duty posting

Proforma Invoice

Excise Invoice Print

Excise Duty posting

Proforma Invoice

Excise Invoice Print

Invoice Split

The separation of excise invoice and commercial invoice allows for multiple excise invoices (through split criteria) while invoicing the customer with a single commercial invoice.

The excise Invoice split in the Proforma excise invoice is based on split criteria like number of items in preprinted stationery or the material chapter-id. No accounting takes place at this stage. This is a template for the final Excise invoice to be sent to the customer.

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Delivery

Ship-to-party : 2300

Item Material Qty10 400 5

Order

Sold-to-party : 2300

Item Material Qty10 400 5

Billing

Bill-to-party : 2300

Item Material Qty10 400 5

Excise Invoice

Sold-to-party : 2300

Item Material Qty10 400 5

ã SAP AG 1999

Document flow of Excise Invoice

Order. Delivery. . Billing. . .Excise Invoice

Excise Document Flow

Displays all the preceding documents of an outgoing excise invoice.

Also displays cancelled invoices, if any.

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Utilization Due List

Listing of all billing documents due for utilizationprovided

Also includes ability to view,

Account balances

Total duty amount needed to utilize the displayed billing documents

Deficit, if any

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Batch utilization

Excise Invoices can be created in batches

Provision of additional fields in selection screen like Billing date

SD document category

Billing document category

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You should now be able to:

Understand Excise related sales processes

Understand Sales Tax related sales processes

Run the sales processes

Sales Process : Unit Summary