Excise Invoice (Outgoing) 

Definition

A business document, in India, that you prepare when you issue excisable goods from a manufacturing plant, for example:

To be sold to a customer To be transferred to another of your plants

The excise invoice lists the goods that you have issued and states how much excise duty applies. Your customer uses the excise invoice to claim back the excise that it has paid from the excise authorities.

Use

In the R/3 System, there are three different procedures for creating excise invoices

Sales direct from the factory

This procedure is for when you sell manufactured goods straight from the factory at which they were produced, in which case you levy excise duty when the goods leave the factory on their way to the customer.

If, when you send the goods to the customer, you enclose the commercial invoice, you create the excise invoice with reference to the commercial invoice. If you want to send the commercial invoice after you have dispatched the goods, however, you create the excise invoice with reference to a pro forma commercial invoice. For more information about these procedures, see Sales from Factories.

As well as creating excise invoices individually, you can also create them in batches (see Creation of Excise Invoices in Batches).

Sales from depots

A depot is a site at which the goods are stored, away from the factory at which they were produced. In this procedure, you have to levy the excise duty when you transfer the goods from the factory to the depot, and then make sure this is passed on to the customer when it makes a purchase. For more information, see Sales from Depots.

Sales (other goods movements)

Some other goods movements may also require you to create an excise invoice with reference to other documents. The R/3 System offers separate functions for these purposes (see Other Outward Movements).

Structure

Numbering of Excise Invoices

Outgoing excise invoices have two numbers: an internal document number, which is assigned immediately you create an excise invoice; and an excise invoice number, which is not assigned until you have verified and posted it.

As far as the excise invoice number is concerned, you have to number your outgoing excise invoices in sequential order, starting each year on 1 April. You must notify the excise authority of the jurisdiction of the invoicing location. The serial number must be printed on each page of the excise invoice.

Each number range is governed by a series group. You must create at least one series group in order to be able to number the excise invoices. If you need more than one number range, you must create the corresponding number of series groups. You do so in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Basic Settings  Maintain Series Groups.

Number of Line Items Per Excise Invoice

Some states allow you to include only a limited number of items for each page of an excise invoice (for example, if the excise invoices are to be printed on prenumbered forms). You can customize the system so that it prints the excise invoice accordingly, in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Basic Settings  Maintain Excise Registrations.

 Material Master (Excise Data) 

Definition

The part of the material master record where you record excise information.

To access the material master, from the SAP Easy Access menu, choose Logistics  Materials Management  Material Master  Material  …

The excise data is displayed in a separate group box on the Foreign Trade: Import Data and Foreign Trade: Export Data tabs.

Use

Customizing

In order for the users to be able to see the excise data group box, carry out the IMG activity in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Master Data  Assign Users to Material Master Screen Sequence for Excise Duty. T.Code OMT3E

 Customer Master (Country Version India Data) 

Definition

The part of the vendor master record where you record information about a vendor relating to sales tax, excise duty, and withholding tax.

To access the vendor master, from the SAP Easy Access screen, choose Logistics  Sales and Distribution  Master Data  Business Partners  Customer ….

Use

When you have entered the customer that you want to process, you can access the excise data from every screen, by choosing CIN Details.

There are three separate tabs, one for each sort of tax.

If you prefer, you can also maintain this data in the Excise Rate Maintenance transaction (see Customer Master (Excise Data)).

 Customer Master (Excise Data) 

Definition

The part of the customer master record that contains information relating to Indian excise duty.

Use

In conjunction with other data, this data is used to calculate excise duty on various transactions.

To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes  Master Data  Excise Rate Maintenance, and then select the following options described below.

Structure

The excise part of the customer master contains the following information:

Customer Excise Details

On this screen, you enter your customers' tax registration numbers, which are used for various forms of correspondence and reports:

Excise registration number (and the range, division, and collectorate in which this is located) Central sales tax (CST) number Local sales tax (LST) registration number Permanent account number (PAN)

In order for the system to be able to calculate which rate of excise duty to apply on sales to the customer, you must also assign it a customer excise duty status (for more information about how this works, see Determination of Excise Duty Rates).

Excise Indicator for Plant and Customer

On this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).

 Pricing 

Use

When you create a sales document, the system automatically determines the price of the goods you are selling, including any excise duties and sales taxes.

Features

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)

These pricing procedures determine the net price (or the assessable value, if there is one) and then calculate all forms of excise duties and sales taxes on the goods.

Excise Duties

For each form of excise duty, there are three separate condition types as follows:

Excise duty Ad valorem Specific Total*

Basic JEXP JEXQ JEXT

Additional JEAP JEAQ JEAT

Special JESP JESQ JEST

Cess JCEP JCEQ JCET

* These condition types show, for example, the total basic excise duty on the goods (ad valorem duty plus specific duty). It is the values in these condition types that the system uses in follow-on documents.

All of these condition types are discount surcharge conditions and are posted using the accounting key EXD.

The excise conditions are determined using the access sequence JEXC. This access sequence contains the following condition tables, so that you can create excise condition records for all of the following combinations:

Table Conditions

362 Country, chapter ID*

357 Country, plant, chapter ID

358 Country, plant, chapter ID, material

371 Country, plant, chapter ID, ship-to party

369 Country, plant, chapter ID, customer tax classification

372 Sales organization, reference document and item

* The chapter ID is stored in the control code field. When you enter a material's chapter ID in the material master, the system copies the chapter ID to the control code field. When you create a condition record, the field name is control code.

If you want to create condition records for different types of customers, for example, those that qualify for concessional tax rates and those that don't, you can define customer tax classifications in Customizing and create condition records for each classification.

Sales Taxes

For central sales tax and local sales tax, there are two condition records each, one for the basic tax (JCST and JLST respectively), and one for surcharges (JCSR and JLSR). These are all tax conditions and are posted with the account key MWS or MW3. When you create a condition record for the sales taxes, you must specify a tax code that you want the tax to be posted under in Financial Accounting (FI).

The system determines the central sales tax using the access sequence JCST, and local sales tax using the access sequence JLST. Both access sequences use the following condition tables:

Table Conditions

359 Plant, material group

367 Country, plant, region, material

368 Country, region of delivering plant, region of ship-to party, customer tax classification, material tax classification

 Sales from Factories 

Purpose

This process describes how the R/3 System handles sales from factories, allowing for the creation of excise invoices, which you have to send with each delivery that is subject to excise duty. There are two

scenarios, depending on whether you want to send the commercial invoice along with the delivery or at a later date.

Prerequisites

In order for the system to be able to copy the information from document to document, you must have set up the copying control procedures in Customizing for Sales and Distribution (SD). This differs according to when you want to send the commercial invoice:

Along with the delivery

In this case, the document flow would be OR (standard sales order type) – LF (standard delivery type) – F2 (invoice).

At a later date

The document flow would be OR – JF (delivery type, a copy of LF) – JEX (pro forma billing document type, a copy of document type F8) – F2.

In addition, you must also have maintained the settings in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Business Transactions  Outgoing Excise Invoices  Assign Billing Types to Delivery Types.

Two sample pricing procedures are provided for this sales procedure, J1INFAC (condition-based excise determination) and JFACT (formula-based excise determination).

Process Flow

1. The sales clerk creates a sales order, following the standard procedure.

There are special procedures for customers in possession of exemption forms.

2. The shipping clerk creates a delivery, again, following the standard procedure.

On the initial screen, you set the appropriate delivery type (see above).

3. The warehouseman enters the goods issue.

The system only allows users to create a pro forma excise invoice if the delivery is complete, so as to prevent them from creating multiple pro forma excise invoices.

4. What you do at this stage depends on whether you want to send the commercial invoice along with the delivery or whether you want to invoice the customer later.

o If the invoice is to be shipped with delivery, the shipping clerk:

i. Creates an invoice, following the standard procedure. ii. Creates an excise invoice from the invoice

o If the invoice is to be sent on at a later date, the shipping clerk:

i. Creates the pro forma excise invoice

The pro forma excise invoice is only required for technical purposes and is not sent to the customer. The system does not make any accounting postings at this stage.

ii. Creates an excise invoice from the pro forma excise invoice

In both these cases, the system creates an accounting document to post the excise duty to a clearing account.

Instead of creating excise invoices manually, you can also have the system create them automatically. Alternatively, you can create them in batches.

5. You ship the goods.

6. When the time comes to invoice the customer, you create the invoice, following the standard procedure.

Irrespective of the number of excise invoices that you have issued, you can combine the delivery items in a single invoice (if the standard requirements are met).

 Automatic Creation of Excise Invoices 

Use

The R/3 System can automatically create an outgoing excise invoice for you immediately you post a commercial invoice (or a pro forma invoice) for a customer sale. This function applies to excise invoices for sales from factories only.

Activities

Customizing

Activate the function in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Basic Settings  Maintain Excise Groups.

Specify which CENVAT accounts the system is to post the different types of excise duty to, in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Business Transactions  Utilization  Utilization Determination.

Specify which excise group and series group the excise invoices are to be created for, in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Business Transactions  Outgoing Excise Invoices  Maintain Default Series Groups and Excise Groups.

Day-to-Day Activities

When you post an invoice, the system creates an excise invoice. All the information that it needs to create the excise invoice is provided either by the invoice or by the Customizing settings that you have made. It also determines the excise invoice type automatically.

 Exemption Forms 

Use

Some customers may be liable to excise duty at reduced rates or exempt from it altogether (for example, customers abroad). Such businesses must provide you with a copy of their exemption forms in order to claim their exemption.

Activities

If you make a sale to a customer that is in possession of an exemption form, you have to record the form number in the sales order. The system then automatically applies the appropriate rate of excise duty.

When you create the sales order, enter the form, using the customer tax classification fields. Based on the customer tax classification status, you can use different excise rates for a sale transaction.

If the form has not been submitted by the time you create the pro forma excise invoice, the excise value will be recalculated at the normal rate.

See also:

Form Tracking

 Export-Oriented Units 

Use

Any sales that you make to export-oriented units (EOUs) require special treatment by the SAP System.

Prerequisites

You have maintained a zero-rate excise duty indicator for customers that qualify as 100% EOUs.

Activities

When you come to create the excise invoice, the excise value is zero in the pro forma excise invoice document. No excise duty is debited to the CENVAT account, and so no accounting entries are

generated. However, the sale is marked as a deemed export, and the system generates an outgoing excise invoice.

Even though the excise duty is zero, when you print the excise invoice, the system calculates the duty for the purposes of printing.

 Creation of Excise Invoices in Batches 

Use

You use this report to create excise invoices for batches of invoices and batches of pro forma excise invoices, instead of creating each one individually (see Sales from Factories). The excise invoices are then created in the background.

Features

To access the report, from the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Excise Invoice  For Sales Order  Batch Utilization.

Selection

On the selection screen, specify which billing documents (invoices or pro forma excise invoices) you want to create excise invoices for.

Output

A list of commercial invoices and pro forma excise invoices appears, which you process as follows:

1. If you want to see how much credit is available on your CENVAT accounts – and if there is enough to cover the excise duty that you will incur when you create the excise invoices – choose Account balances.

A dialog box appears with the following information:

o The amounts under Balances are the amounts available on the CENVAT accounts. o The amounts under Utilization are the total amounts of the excise duties to be levied. o If the CENVAT accounts do not contain enough credits to cover the excise duties, the

amount short is shown under Deficit.

2. When you know which documents you want to process, select them and choose Batch utilization.

 Printout of Excise Invoices 

Use

You use this report to print outgoing excise invoices.

Prerequisites

You have:

Customized the output for billing documents

You can do so in Customizing for Sales and Distribution (SD), by choosing 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.

Maintained condition records for the output

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

Features

To access this function, from the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Excise Invoice  For Sales Order  Print.

Selection

On the selection screen, enter the numbers of the excise invoices. If any of these are reprints, select Incl. printed excise inv.

Output

From the list of excise invoices, you have the following options:

To display an excise invoice, select it and choose .

To print an excise invoice, select it and choose .

 Creating Pro Forma Excise Invoices 

You create a pro forma excise invoice as you would create any other billing document, but in the Billing type field, select Excise invoice.

 Creating Excise Invoices 

Use

This is the standard procedure that you follow to create an outgoing excise invoice. You create the excise invoice from a reference document: either an invoice, a pro forma excise invoice, or a billing document.

Prerequisites

You have:

Customized the rounding-off indicator for sales transactions Specified which exchange rate type to use for export invoices

You make both of these settings in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Basic Settings  Maintain Company Codes.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Excise Invoice  For Sales Order  Outgoing Excise Invoice Create/Change/Display  …

o If you want to create the excise invoice with reference to a pro forma excise invoice or commercial invoice, choose Excise Invoice  Create.

o If you want to create the excise invoice with reference to a delivery note, choose Exc. inv. for delivery  Create.

2. Enter the number of the reference document.

If you do not know the document number, you can search for it by choosing  Due list.

3. Choose .

The excise invoice screen appears. The header data is displayed at the top; the line items, which the system has copied from the reference document, are displayed at the bottom.

4. Enter header data as required. 5. To check if the utilization is done properly and the document is ready for posting, choose . 6. To enter texts for the excise invoice, choose . 7. To display the balances of the CENVAT accounts, choose Balances. 8. To display the utilization details, choose . 9. Save the excise invoice.

 Excise Duty Utilization 

Use

When you create an excise invoice, the system allows you to display the information about the excise duty, including which CENVAT accounts the excise will be debited to. To access this function, choose .

If a company defaults in the fortnightly payment of CENVAT, the excise collectorate can enforce an immediate payment of excise. Alternatively, you may have excess CENVAT credit and want to pay the duty immediately and not wait for a fortnight. This is also the case for some export removals where you claim the refund from DGFTA, in which case you need to pay the duty immediately.

Prerequisites

You can enable the immediate utilization of CENVAT, in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Basic Settings  Maintain Series Groups.

Features

The information is shown in two group boxes:

Excise details

This shows you the excise invoice type, which you can change if necessary by choosing . It also shows you how much excise duty will be charged on the sale.

Balance utilization

This shows you which CENVAT accounts the excise duty will be debited to.

The system automatically proposes which CENVAT accounts it is to debit the excise duty to. It first takes the RG 23 accounts, and if there is not enough credit to cover it, it debits the remainder to the personal ledger account (PLA). The cess component of excise can only be taken from the PLA.

If immediate utilization is active for a series group, you can change the default utilization proposal. You can decide from which register to pay the amount. When you save the invoice, the system generates Part II entries in the appropriate registers. These excise invoices are not listed further during fortnightly payment of CENVAT.

If immediate utilization is off for the series group, the system proposes the excise duty values directly in the RG 23A fields, but the postings are made to intermediate accounts for excise duty. The system does not create any Part II entries. Entries are posted into a dispatch register. When you then run the fortnightly payment program, the system picks up these invoices and allows payment of CENVAT.

For information about debiting the excise duty to a different company, see Intercompany Excise Duty Utilization

 Excise Invoice Type 

Use

The excise invoice type denotes whether the goods are for the domestic market, or if they are for export, whether they are for export under bond, deemed export, or export under rebate. For more information about these processes, see Excise Bonding.

Features

In the R/3 System, when you set the excise invoice type, it controls:

How the excise duty is calculated Which ARE documents you process the export with

Activities

When you come to create an excise invoice for an export sale, if you need to change the excise invoice type, follow this procedure:

1. Set the excise invoice type to Deemed, Bond, or No bond. 2. Choose Calculate Tax.

The system recalculates the excise duty according to the excise invoice type (see below). To do so, it translates the assessable value into the local currency as at the excise invoice date. What happens next depends on the excise invoice type:

o Exports under bond

The system sets the excise duty to zero and generates an outgoing excise invoice. It does not generate any entries for the Part II register.

The excise invoice is created with an export excise invoice number.

o Deemed exports

The excise to be paid will be zero. This information will be used when the Part II registers are downloaded.

When the system creates the excise invoice, it numbers it as a domestic excise invoice.

o Nonbonded exports

The system applies the tax code defined in Customizing for Logistics – General, under Taxes on Goods Movements  India  Basic Settings  Determination of Excise Duty  Maintain Excise Defaults, and calculates the excise duty as normal.

Again, the excise invoice is created with an export excise invoice number.

 Excise on Intercompany Billing Documents 

Use

The SAP System allows you to create an excise invoice for intercompany billing documents.

For example, assume one company code places a sales order, and the goods are delivered to another. The first company has to create an excise invoice, in this scenario, with reference to the intercompany billing document.

 Canceling Excise Invoices 

Use

You follow this procedure in order to cancel an outgoing excise invoice. It reverses any excise duty accounted for.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Excise JV  Create  Cancel exc. inv. or Indirect Taxes  Sales and Outbound Movements  Excise Invoice Create/Change/Display  .

2. Enter the number, year, and series group of the excise invoice that you want to cancel.

A dialog box appears.

3. Choose Yes. 4. Save the adjustment posting.

 Canceling Excise Invoices 

Use

You follow this procedure in order to cancel an outgoing excise invoice. It reverses any excise duty accounted for.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Excise JV  Create  Cancel exc. inv. or Indirect Taxes  Sales and Outbound Movements  Excise Invoice Create/Change/Display  .

2. Enter the number, year, and series group of the excise invoice that you want to cancel.

A dialog box appears.

3. Choose Yes. 4. Save the adjustment posting.

 Sales from Depots 

Purpose

You may sell finished goods directly from the place of manufacture, as described under Sales from Factories, or you may first ship them to a separate location for storage (a depot), from where you will sell them. The second procedure is described here.

Sales from depots are handled differently from sales from factories because of excise law: Excise duty is payable when you send the goods from the factory to the depot, but it is not levied again when you sell the goods.

Sometimes when you make a final sale of goods from a depot, price escalations could have happened with retrospective effect. In such scenarios you need to pay the extra excise duty at the factory using an A Certificate. You need to register the A certificate details in the RG 23D register and the excise recovered from the customer.

Prerequisites

You have customized:

Stock transport processing, in Customizing for Materials Management (MM), by choosing Purchasing  Purchase Order  Set Up Stock Transport Order

The copying control for copying stock transport order NL to excise invoice JEX

Make this setting in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Business Transactions  Outgoing Excise Invoices  Assign Billing Types to Delivery Types.

The item category NLN (standard transport order) so that it is relevant for billing

You do this in Customizing for Sales and Distribution (SD), by choosing Sales  Sales Documents  Sales Document Item.

Process Flow

1. You create the sales order, following the standard procedure.

The standard pricing procedures for depot sales are J1INDEP (condition-based excise determination) and JDEPOT (formula-based excise determination).

2. You create the delivery, again, following the standard procedure. 3. You assign excise invoices to the delivery or material document. 4. You verify that you have selected the correct excise invoices and post them. Alternatively, if you

have selected the wrong excise invoices, you can cancel the assignment.

5. You create the invoice, following the standard procedure.

 Creating Excise Invoices for Stock Transfers 

1. From the SAP Easy Access screen, choose Indirect Taxes  Procurement  Excise Invoice  For Depot  Create/Change/Display.

2. In the Material document field, enter the goods receipt number and choose .

The system displays the information from the goods receipt, for example, the sending plant, the excise registration, the range, the division, and the collectorate.

3. Choose  Details.

The system copies the items from the goods receipt document. In the depot it is possible to have a separate excise invoice at line item level.

4. Enter the internal document number of the excise invoice sent by the factory. 5. Choose More documents to go the excise invoice details screen. 6. Enter the internal document number of the excise invoice from the factory.

The system copies the information to the line item (for example, the excise invoice number, the excise invoice date, the item number , the chapter ID, the excise invoice quantity, the amount of excise duty paid, the excise base value, and the serial number of the Part II register entry with which the excise was paid).

You can change the receipt quantity to match the actual quantity received at the depot, if necessary. The system automatically adjusts the excise accordingly.

7. Go back to the item details screen. 8. Save the excise invoice.

The system creates an entry in register RG 23D.

 Creating Excise Invoices for Direct Purchases 

1. From the SAP Easy Access screen, choose Indirect Taxes  Procurement  Excise Invoice  For Depot  Create/Change/Display.

2. In the Material document field, enter the goods receipt number and choose .

The system displays the information from the goods receipt, for example, the sending plant, the excise registration, the range, the division, and the collectorate.

You can also maintain the excise registration details for the ship-from party, as for with the vendor. The ship-from can be different from the vendor code. (The delivering plant can be maintained as a ship-from in the system. When a valid ship-from is entered, the excise registration details copied from the vendor will be overwritten by the ship-from excise registration details.)

The ship-from registration details displayed can also be overwritten manually.

The dealer's commercial invoice number can be stored in the vendor excise invoice number, as in this case the dealer himself will not have an excise invoice.

3. Choose  Details.

The system copies the items from the goods receipt document. It also copies the vendor's excise invoice number and the serial numbers of the entries in the RG 23A, RG 23C, and personal ledger account (PLA) registers.

4. Enter the internal document number of the excise invoice sent by the factory. 5. Select an item and choose More documents to go the excise invoice details screen.

In the case of direct purchases, there will not be any excise invoice in the system, so leave the internal document field blank. The vendor's invoice will show the details of the excise invoices through which excise has been paid for the item that is being dispatched. You can enter these details here.

6. For each item, the chapter ID, excise base value, and excise duty amounts are defaulted from the purchase order. You can change them if there is any difference. Enter the excise amount paid and the receipt quantity. You also enter the Part II register serial numbers with which the excise duty was paid and the excise registration information from the original excise invoice.

7. Go back to the item details screen. 8. Save the excise invoice.

The system creates an entry in register RG 23D. You can change the excise invoice as long as it has not been used in any sales.

 Creating Additional Excise Entries at Depots 

1. From the SAP Easy Access screen, choose Indirect Taxes  Procurement  Excise Invoice  For Depot  Additional Excise Entry at Depot.

2. In the Internal exc. inv. no. field, enter the internal excise invoice number at the depot along with

the year, and choose .

The system displays the information from the excise invoice which has already been created at the depot, including the excise group, vendor excise invoice number, ship from, and all the receipt against that excise invoice, highlighting the RG 23D folio and serial numbers.

An excise invoice item can have multiple A certificates attached to it. The A certificates will have the same folio number as the original line item, but the serial numbers will be different. A hierarchy icon differentiates the additional lines for an item line.

3. You can maintain the A certificate number, date, and additional BED, AED ,SED and CESS for a given RG 23D Folio.

4. After entering an A certificate you cannot delete the A certificate from the system, but you can change it until it is picked up during removals from the depot.

5. If some of the values in an A certificate are incorrect, you can make the values zero so that they do not have an impact on the final excise value.

6. Once an A certificate is used for removals then it cannot be changed. 7. Save additional excise entry.

The system creates an entry in register RG 23D. Folio number generation must be active for you to make use of this supplementary invoice functionality at depot.

 Assigning Excise Invoices to a Delivery 

Use

You follow this procedure to specify which excise invoices are to be assigned to a delivery from a depot (or other material document).

You can also automate this procedure, using the batch selection program (J_1IJCHK), by making the appropriate Customizing settings in the Country Version India (CIN) Implementation Guide (IMG).

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Excise Invoice  For Depot  Create/Change/Display  Delivery or Material Document  RG 23D Selection.

2. Enter the delivery document number or the material number and choose . 3. Select the excise invoice you want. 4. Choose . 5. Choose Excise invoice.

A list of excise invoices appears. These are the excise invoices at the depot with a balance quantity.

The system also shows a list of the A certificates that can be used. You can pick up any of the A certificates, but they must be for the same excise invoice. You can only pick up an A certificate in its entirety. You cannot select part of an A certificate.

6. Select the excise invoices that are relevant to the delivery. 7. Specify what quantity to be used from each excise invoice.

The system recalculates the excise accordingly.

8. Go back to the item details screen. 9. Save the data.

Result

The system creates an entry in register RG 23D and generates the depot excise invoice numbers.

If you selected any A certificates, the system also generates additional entries in the RG 23D register. The system marks the original A certificates as updated, so that they cannot be used for any other removals.

 Verifying and Posting Excise Invoices Assigned to Delivery 

Use

You follow this procedure to verify that the correct excise invoices have been assigned to a delivery. If everything is correct, you can then post the delivery.

Prerequisites

You have selected which excise invoices are to be assigned to the delivery and have posted the goods issue.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Excise Invoice  For Depot  Create/Change/Display  Delivery or Material Document  Verify/Post.

2. Enter the number of the delivery that you want to verify and choose . 3. Make sure that the information is correct. 4. Save the data.

The system updates the posting flag in the RG 23D register.

 Other Outward Movements 

Use

In the standard procedure for creating outgoing excise invoices (see Sales from Factories), the excise invoice is created with reference to a delivery note or an invoice. The R/3 System also allows you to create an excise invoice with reference to various other documents, as follows:

Goods issue documents (for example, transfer postings) Vendor excise invoices (for when you return faulty goods to a vendor, for example) Factory excise invoice (for sales returns)

In addition, you can create an excise invoice without reference to any document at all.

Prerequisites

You have specified, per excise group, whether you want to create these excise invoices in one or two steps (see below). You do so in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Basic Settings  Maintain Excise Groups.

You have also specified the maximum number of items allowed per excise invoice, in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Basic Settings  Maintain Excise Registrations.

Features

Depending on your Customizing settings, you create excise invoices in a single step or in two steps, as follows:

In the two-step procedure, the excise clerk first creates the excise invoice, but no postings are made. An excise supervisor then verifies that the invoice is correct and, if so, posts it.

If the excise clerks are more experienced, you may want to use the one-step procedure, which is quicker, but more prone to error.

In this case, when you create an excise invoice, the system automatically posts it in the background.

Note that the functions for creating and canceling these excise invoices are different from those for other excise invoices.

 Creating Excise Invoices 

Use

This is the procedure that you follow to create an excise invoice for the less common types of goods movement.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Excise Invoice  For Other Movements  Create/Change/Display  .

2. On the selection screen, enter data as required, including:

o Reference group box

Specify which document you want to create the excise invoice for and which excise group it is for.

o Details group box

Specify the vendor or customer that you are sending the invoice to.

3. Choose .

If you entered an internal document number, the system copies the item details from it.

4. Choose . 5. Enter line items for each of the materials to be included in the excise invoice. For each item, enter

the following data:

o Material o Quantity o Unit of measure o Base value o Excise duty

6. To pick the rate and amount from a specific excise invoice, choose Get excise invoice. 7. Save the excise invoice.

If you are using the one-step procedure, the system creates and posts an excise invoice. Otherwise, the system saves the information but does not make any postings: it now has to be verified.

 Verifying and Posting Excise Invoices 

Use

You follow this procedure to verify that the information in an excise invoice that has already been created, and to post it once you are satisfied.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Excise Invoice  For Other Movements  Post Excise Invoice.

2. Enter the internal document number of the excise invoice. 3. Choose Release to accounting.

The system displays the excise invoice. The excise duty that is to be posted is displayed at the foot of the screen, which you can change if necessary.

4. To access the balance utilization, choose . 5. To display the balance available on the CENVAT accounts, choose Account Balances. 6. Save the excise invoice.

The system generates the accounting documents.

7. To print the excise invoice, choose .

 Canceling Excise Invoices 

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Excise Invoice  For Other Movements  Create/Change/Display  .

2. Enter the internal document number. 3. Choose .

A dialog box appears, asking you to confirm whether you want to delete the excise invoice.

4. Choose Yes.

 Creating Excise Invoices for Stock Transfers 

Use

Follow this procedure to create an outgoing excise invoice for a stock transfer to another plant. For more information about this function, see Other Outward Movements.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Excise Invoice  For Other Movements  Create/Change/Display  .

2. On the selection screen, enter data as required, including:

o Ref. doc. type: MATD (Material document) o Doc. number: Transfer posting number o Vendor: Leave this field blank o Customer: The customer account number of the receiving plant

3. Choose .

The system copies the details from the transfer posting.

4. For each item:

o Enter the net assessable value o Check and change the excise duty rates

5. Save the excise invoice.

If you are using the one-step procedure, the system creates and posts the excise invoice. Otherwise, the system saves the information but does not make any postings: it now has to be verified.

 Making a Transfer Posting 

Use

In this procedure, you make a transfer posting for the goods ordered by another plant. For more

information about this function, see Entering the Removal from Storage at the Issuing Plant.

Procedure

1. From the SAP Easy Access screen, choose Logistics  Materials Management  Inventory Management  Goods Movement  Transfer Posting.

2. Choose Movement type  Transfer posting  Plant to plant  To stock in transit. 3. Enter the number of the issuing plant and storage location. 4. Choose To purchase order. 5. In the dialog box, enter the number of the stock transport order that the receiving plant created

and choose . 6. Check the data. 7. Save the transfer posting.

 Making a Transfer Posting 

Use

In this procedure, you make a transfer posting for the goods ordered by another plant. For more

information about this function, see Entering the Removal from Storage at the Issuing Plant.

Procedure

1. From the SAP Easy Access screen, choose Logistics  Materials Management  Inventory Management  Goods Movement  Transfer Posting.

2. Choose Movement type  Transfer posting  Plant to plant  To stock in transit. 3. Enter the number of the issuing plant and storage location.

4. Choose To purchase order. 5. In the dialog box, enter the number of the stock transport order that the receiving plant created

and choose . 6. Check the data. 7. Save the transfer posting.

 Exports Under Excise Regulations 

Use

Manufacturing plants are entitled not to pay any basic excise duty on export sales, as long as the goods are accompanied by an ARE document. The R/3 System handles AREs and the appropriate permit documents, such as export bonds and deemed export licenses.

The R/3 System does not handle exports to Nepal and Bhutan, which are subject to separate legislation.

Features

The R/3 System allows you to process three types of exports:

Exports under bond Exports under claim for rebate Deemed exports

You must create an ARE document for all goods that you export under these schemes. You use the same function to process all ARE documents. For information about how to use the function in general, and which features are common to all ARE documents, see ARE Documents.

 Exports Under Bond 

Use

One of the ways of exporting goods without paying basic excise duty is to obtain an excise bond from the excise authorities and then fill out an ARE-1 document to go with every export.

Activities

Customizing

Carry out the IMG activities in Customizing for Logistics – General, under Tax on Goods Movements  India  Business Transactions  Exports Under Excise Regulations  Exports and …  Printouts of ARE Documents.

Master Data

Enter your excise bonds in the system.

Day-to-Day Activities

In order to qualify for an exemption from excise duty, all exports must be accompanied by the appropriate paperwork, including an ARE-1 document, and you must complete the export within the export period. To process and track ARE-1s, use the ARE Documents functions, following the process described under ARE-1 Processing.

You can only issue an ARE-1 under a bond. The system automatically keeps track of the bond balance.

There are two ad-hoc reports that you can use for tracking bonds and ARE-1s: Bond Summary Report and Aging Analysis for ARE Documents.

Reporting

There are two statutory reports that you prepare at least once a month, Pro Forma of Running Bond Account and Statement Regarding Export of Excisable Goods.

 Excise Bond 

Definition

A document that effectively licenses a manufacturing plant to remove goods from its premises without paying basic excise duty, on condition that the goods are then exported.

An excise bond covers a fixed amount of excise duty. The excise duty of the goods exported under bond cannot exceed the bond value.

In the R/3 System, the term "excise bond" also covers letters of undertaking, and all of the excise bond functions apply equally to letters of undertaking, unless stated otherwise.

Use

Master Data

When you obtain a bond from the excise department, enter it in the system. The system numbers each bond automatically.

Day-to-Day Activities

When you assign an ARE-1 to a bond, the system automatically warns you of any reservations that have already been made against the bond.

The system keeps track of the bond balance for you. When you post an ARE-1, the bond balance decreases automatically. In the case of running bonds, the balance increases again when you close the ARE-1.

Once an excise bond is no longer of any use to you, for example, if it expires or if you have exhausted a fixed bond, you can close it. This prevents any users from using it afterwards.

Reporting

You can use the SAP System to prepare two statutory reports, the Pro Forma of Running Bond Account and the Statement Regarding Export of Excisable Goods. One further report, the Bond Summary Report, gives you an overview of all of your bonds.

 Bond Numbering 

Use

When you create an excise bond, the system automatically assigns it an internal bond number.

Each bond also has an official bond number.

Activities

Customizing

Maintain the number range object for the internal bond number in Customizing for Logistics – General, by choosing Tax on Goods Movements  India  Tools  Number Ranges.

Master Data

When you enter an excise bond, you enter the official bond number manually. When you save the bond, the system automatically assigns it a new internal bond number.

 Bond Balance 

Use

Each excise bond only covers a limited amount of basic excise duty, the bond value. Every time you post an ARE-1, the system reduces the bond balance automatically.

Features

Every time you post an ARE-1 under a fixed bond, the system debits the excise duty stated on the ARE-1 to the bond, which reduces the bond balance. When the balance reaches zero, the bond is exhausted.

Running bonds, on the other hand, are automatically replenished: Once an export is complete and the excise department sends you confirmation that the ARE-1 is correct, the system automatically credits the excise duty back to the bond (but see also Fast Credit).

You can check the bond balance at any time in the bond master or the Bond Summary Report. If you want to check the debits and credits on a running bond, use the Pro Forma of Running Bond Account.

 Fast Credit 

Use

When you close an ARE-1 covered by a running bond, the system credits the excise duty back to the bond automatically.

However, some local excise departments may allow you to credit the excise duty back as soon as you receive the countersigned ARE-1 back from the customs department. This procedure is known in the system as fast credit.

Activities

Customizing

If you have a fast credit agreement with its local excise department, enter this information in Customizing for Logistics – General, by choosing Tax on Goods Movements  India  Business Transactions  Exports Under Excise Regulations  Exports  Make Settings for ARE-1 Procedure.

Day-to-Day Activities

If you do not have a fast credit agreement, the system credits the excise duty to the running bond when you close the ARE-1.

With fast credit, the system credits the excise duty back to the running bond when you enter the Arrived Back date (see Updating ARE-1s).

 Reservations 

Use

The system records the total amount of excise duty from ARE-1s that you have created (but not yet posted) under a given bond.

This reservation amount is for information only. It serves to warn you, when you create an ARE-1, that other clerks have already created other ARE-1s under a bond and that they intend to post them under this bond as well.

Activities

When you create a new ARE-1 in the R/3 System, you specify which bond the ARE-1 is covered by. When you do so, the system displays the bond's reservation amount.

If the reservation amount is already over the bond balance, you might want to use a different bond, if another one is available. But since the reservation amount is for information only, the decision is up to you.

 Processing Excise Bonds 

To access the individual functions shown in the table, from the SAP Easy Access screen, choose Indirect Taxes  Master Data  Excise Bond.

Function Follow-on menu path What you should know

Create an excise bond Create  

Change an excise bond Change  

Display an excise bond Display  

Cancel an excise bond Cancel You can only cancel a bond if you have not yet used it.

Close an excise bond Close You must have closed all of the ARE-1s that the bond covers.

 ARE-1 Processing 

Purpose

This procedure describes how you process ARE-1s for exports under bond.

Prerequisites

You have an excise bond from the government and have entered it in the system.

You have received a sales order from a customer located abroad. In the R/3 System, you have already created the delivery and the outgoing excise invoice. In the excise invoice, you have set the excise invoice type to Export Under Bond.

Process Flow

1. The excise clerk creates an ARE-1.

He then calls the local excise department and asks them to send an excise officer to check the goods.

2. The excise officer comes and checks that the goods match what is on the ARE-1. He fills out Part A of the form (Certification by the Central Excise Office).

The clerk then posts the ARE-1 and prints out the requisite number of copies.

The excise officer signs the ARE-1s and takes one copy with him.

3. The shipping department sends the goods to be exported, together with the excise invoice and the ARE-1.

Before the goods can leave the country, they have to go through the customs office, for example, at the airport or at the port.

4. When the goods arrive at customs, the customs officer checks whether the excise invoice and the ARE-1 match the goods.

If he finds that there are fewer goods than stated on the ARE-1, he enters the shortfall in the ARE-1.

He then fills out Part B of the ARE-1 (Certification by the Customs Officer) and sends it back to the excise clerk. One of the copies is in a sealed envelope.

5. When the excise clerk receives the ARE-1, he updates the ARE-1 in the R/3 System.

He fills out the various certification dates in the ARE-1 (for example, the date when the ARE-1 arrived back at your company).

If the customs officer noted a shortfall in the quantity of goods, the excise clerk enters the shortfall as well. Since the whereabouts of the missing goods cannot be accounted for, they no longer qualify for exemption from excise duty. Your company is therefore liable for the excise duty on the shortfall, plus interest, backdated to the date when you removed the goods from your premises. The clerk specifies which excise registers to pay the excise duty from.

6. The clerk sends the ARE-1 in the sealed envelope to the excise department.

The excise officer cross-checks this copy of the ARE-1 with his own copy. When he is satisfied that everything is correct, he sends the excise clerk a final confirmation.

7. When the excise clerk receives the confirmation, he closes the ARE-1.

The process is now complete.

 Creating ARE-1s 

Use

You create an ARE-1 when you want to export goods under bond.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Exports  Central Processing  Create ARE-1.

2. In the top line:

a. Select Create ARE-1. b. Select Outgoing Excise Invoice.

c. Enter the excise invoice that the ARE-1 is for and choose . d. If the ARE-1 is to cover more than one excise invoice, repeat step (c) for each of them.

3. Assign an excise bond to the ARE-1. 4. On the Addresses tab, enter the addresses of your local excise department and the customs

department that will process the ARE-1.

Their addresses will be printed on the ARE-1. For more information, see Automatic Address Determination.

5. On the Additional Data tab, maintain any long texts required in the ARE-1.

This information will be printed on the ARE-1. For more information, see Long Texts.

6. On the Package Details tab, enter any relevant information about how the goods are packaged.

This information will also be printed on the ARE-1.

7. Save the ARE-1.

Result

The system:

Creates the ARE-1 and assigns it an internal ARE-1 number (see ARE Document Numbering) Increases the bond's reservation amount Sets the document status to In Process

The next step you have to carry out in the system is to post the ARE-1. If you need to, you can still cancel the ARE-1.

 Changing ARE-1s 

Use

Once you have created an ARE-1, you can still change the following information until you post it:

Which excise bond it is assigned to Which excise invoices are assigned to it Which addresses are entered Any long texts Any package details

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Exports  Central Processing  Change ARE-1.

2. In the top line:

a. Select Change. b. Select ARE-1 Internal Document.

c. Enter the internal ARE-1 number and choose .

3. Change data as required. 4. Save the ARE-1.

 Assigning Excise Bonds to ARE-1s 

Use

When you create an ARE-1, you must specify which bond covers it. You can change the bond until such time as you post the ARE-1.

Prerequisites

You have obtained an excise bond from the excise department and you have entered in the system.

Procedure

1. On the Bond/UT-1 Detail tab, enter the number of the excise bond that you want to cover the ARE-1 and the year in which it was issued.

2. Choose .

The system displays the bond details.

3. If you want to see which other ARE-1s the bond is already assigned to, choose .

 Posting ARE-1s 

Use

When you have created an ARE-1 and the excise officer has confirmed that all the details are correct, you can post the ARE-1.

You can still make any changes that you need to before you post it.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Exports  Central Processing  Post ARE-1.

2. In the top line:

a. Select Post. b. Select ARE-1 Internal Document.

c. Enter the internal ARE-1 number and fiscal year and choose .

3. On the Certification Dates tab, enter the date and time that the goods are being dispatched. 4. Save the ARE-1.

Result

The system:

Assigns the ARE-1 an official ARE-1 number (see ARE Document Numbering) Clears the excise duty from the bond's reservation amount and debits it to the bond (see Bond

Balance)

You can no longer change the ARE-1. However, you can still reverse it, if need be. Otherwise, the next step is to update it.

 Updating ARE-1s 

Use

When the goods arrive at customs, the customs officer checks them against the excise invoice and the ARE-1. If there are any discrepancies in the quantity of the goods, he records them on the ARE-1. He

also fills out Part B of the ARE-1 (Certification by the Customs Officer) and sends you three copies of the ARE-1, one in a sealed envelope.

When you receive the ARE-1, you update the dates in the ARE-1 in the system to match what the customs officer has written on the ARE-1.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Exports  Central Processing  Update ARE-1.

2. In the top line:

a. Select Update. b. Select ARE-1 Internal Document.

c. Enter the internal ARE-1 number and choose .

3. On the Certification Dates tab, fill out the following dates as per the ARE-1:

o Arrived at Customs o Countersigned by Customs o Arrived Back

4. Enter any shortfalls that the customs officer has noted on the ARE-1. 5. Save the ARE-1.

Result

If the bond is a running bond and you have activated the fast credit function, the system credits the excise duty back to the running bond.

You must now send the ARE-1 to your local excise department.

 Entering Shortfalls in ARE-1s 

Use

If, for any reason, the customs officer finds that the quantities of the goods are lower than you have stated on the excise invoice and the ARE-1, he amends the quantity on the ARE-1. You must then enter the shortfall in the ARE-1.

Since the whereabouts of the missing goods cannot be accounted for, they no longer qualify for exemption from excise duty. You must therefore pay the excise duty on the shortfall, plus interest, backdated to the date when you removed the goods from your premises.

Procedure

1. Choose the line item that you want to adjust.

2. In the detail data, on the Quantities tab, enter the amended quantity, and choose .

The system displays the shortfall in the Differential Qty field.

It calculates the interest due and displays it on the Utilization tab in the Interest Amount field.

3. On the Utilization tab, specify whether you want to pay the excise duty from register RG 23A, register RG 23C, or your PLA.

4. On the Document Details tab, enter the reason for the shortfall in the Reason Code field.

Result

When you save the ARE-1, the system:

Generates a Part II entry in the registers that you have specified (see Excise Registers)

Creates an accounting document to debit the excise duty to the CENVAT reversal account and credit it to the appropriate register accounts as follows (assuming, for example, that you want to pay the excise duty and interest from Register RG 23A and the PLA):

Credits this excise duty back to the bond (see Bond Balance)

 Reversing ARE-1s 

Use

When you have posted an ARE-1, you can reverse it if necessary until such time as customs has countersigned it.

By reversing an ARE-1, you forego the exemption from paying the excise duty that was due on the materials when you removed them from your premises. Consequently, you must pay the excise duty plus interest (see Interest Calculation).

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Exports  Central Processing  Reverse ARE-1.

2. In the top line:

a. Select Reverse ARE-1. b. Select ARE-1 Internal Document.

c. Enter the internal ARE-1 number and choose .

3. On the Utilization tab, specify which excise registers you want to pay the excise duty and the interest from.

You can divide the amount payable between the different registers as you wish.

4. On the Document Details tab, enter the reason for reversing the ARE-1. 5. Save the ARE-1.

Result

The system:

Generates a Part II entry in the registers that you have specified (see Excise Registers) Creates an accounting document to debit the excise duty to the CENVAT reversal account and

credit it to the appropriate register accounts as follows (assuming, for example, that you want to pay the excise duty and interest from Register RG 23A and the PLA):

Credits this amount of excise duty back to the bond (see Bond Balance)

You can no longer change the ARE-1.

 Sending ARE-1s to Excise Departments 

Use

Once the customs officer has returned the ARE-1 to you, you send it to the excise department so that they can cross-check it against their original ARE-1.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Exports  Central Processing  Update ARE-1.

2. In the top line:

a. Select Update ARE-1. b. Select ARE-1 Internal Document.

c. Enter the internal ARE-1 number and choose .

3. On the Certification Dates tab, fill out the Sent to Excise Dept field. 4. Save the ARE-1.

Result

The next step is to close the ARE-1.

 Closing ARE-1s 

Use

When the excise department sends you confirmation that the ARE-1 is correct, you record the date in the system. This closes the ARE-1.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Exports  Central Processing  Update ARE-1.

2. In the top line:

a. Select Update ARE-1. b. Select ARE-1 Internal Document.

c. Enter the internal ARE-1 number and choose .

3. On the Certification Dates tab, fill out the Export Confirmed field. 4. Save the ARE-1.

Result

The ARE-1 is now complete.

 Deemed Exports 

Use

You can ship deemed exports to any customers in possession of a deemed export license without paying any basic excise duty, but only if the goods are accompanied by an ARE-3 document.

Activities

Customizing

Carry out the IMG activities in Customizing for Logistics – General, under Tax on Goods Movements  India  Business Transactions  Exports Under Excise Regulations  Deemed Exports and …  Printouts of ARE Documents.

Master Data

Enter your customers' deemed export licenses in the system.

Day-to-Day Activities

In order to qualify for an exemption from excise duty, all deemed exports must be accompanied by the appropriate paperwork, including an ARE-3 document, and you must complete the deemed export within the rewarehousing period. To process and track ARE-3s, use the ARE Documents functions, following the process described under ARE-3 Processing.

You can only issue an ARE-3 with reference to a customer's license. The system automatically keeps track of the license balance.

There are two ad-hoc reports that you can use for tracking licenses and ARE-3s: Deemed Export License Summary and Aging Analysis for ARE Documents.

 Deemed Export License 

Definition

A license issued by the excise authorities under which an exporter can procure goods from a manufacturer without payment of basic excise duty.

The license is not a blanket exemption. It only applies to purchases of specific quantity or value of specific goods from a specific vendor, for example, 20 personal computers from Computer World Pvt. Ltd.

Use

Master Data

When your customers obtain a deemed export license from the excise authorities, they send you a copy. You enter your customers' licenses in the system; the system numbers each license automatically.

If, later on, a customer gets an extension on the expiry date of the license from the excise authorities, you can enter it there as well. When a license is exhausted, you close it.

Day-to-Day Activities

When you sell a customer some goods that are covered by a license, you create an ARE-3 to go with the goods shipment. In the ARE-3, you specify which license the goods are covered by. The system reduces the license balance accordingly.

When the license balance is exhausted, you can close it.

Reporting

You can keep track of your customers' licenses using the Excise Bonding License Summary.

 License Numbering 

Use

When you create a deemed export license, the system automatically assigns it an internal license number.

Each license also has an official license number.

Activities

Customizing

Maintain the number range object for the internal license number in Customizing for Logistics – General, by choosing Tax on Goods Movements  India  Tools  Number Ranges.

Master Data

When you enter a license, you enter the official license number manually. When you save the license, the system automatically assigns it an internal license number.

 License Balances 

Use

Each deemed export license only covers a limited quantity of goods or goods to a limited value, depending on its quantification method.

Every time you post an ARE-3 against a license, the remaining quantity or value decreases automatically. The system thus keeps track of the license balances for you.

Features

The excise authorities issue several different license types with different quantification methods. When you define the license types in the system (see Customizing below), you specify which quantification method each uses.

Activities

Customizing

Define the license types in Customizing for Logistics – General, by choosing Tax on Goods Movements  India  Business Transactions  Exports Under Excise Regulations  Deemed Exports  Maintain License Types.

Master Data

When you enter a license in the R/3 System, you specify the license type and the quantity or value of the goods covered.

The license type controls which quantification method applies to the license.

Day-to-Day Activities

When you post an ARE-3, the system automatically debits the value or quantity of the goods stated in the ARE-3 to the license. The license balance decreases accordingly.

If you reverse an ARE-3, the license balance does not go back up.

You can check the license balances at any time in the license master or in the Deemed Export License Summary.

 License Validity 

Use

Deemed export licenses are only valid for a limited period of time. The system ensures that you can only use licenses if they are valid, and allows you to extend their validity period if required.

Activities

Master Data

When you enter a license, you enter the validity period as stated on the original document.

If a license expires and the excise authorities grant your customer an extension on the validity period, enter the extension date in the license master. Note that this field only appears once the license expires.

Otherwise, you close the license.

Day-to-Day Activities

The system will not allow you to assign an invalid license to an ARE-3.

 Processing Deemed Export Licenses 

To access the individual functions shown in the table, from the SAP Easy Access screen, choose Indirect Taxes  Master Data  Deemed Export License.

Function Follow-on menu path What you should know

Create a license Create The system assigns the license an internal license number and sets the license status to Active.

Change a license Change You can only change a license if you have not already assigned it to an ARE-3.

Display a license Display  

Cancel a license Cancel You can only cancel a license if you have not yet used it.

The system sets the status to Canceled.

Close a license Close Close a license when all of the ARE-3s that it has covered are closed.

The system sets the status to Closed.

 ARE-3 Processing 

Purpose

This procedure describes how you process ARE-3s for deemed exports.

Prerequisites

Your customer has supplied you with a copy of its deemed export license and you have entered the license in the system.

You have received a sales order from the customer for goods covered by this license. In the R/3 System, you have already created the delivery and the outgoing excise invoice. In the excise invoice, you have set the excise invoice type to Deemed Exports.

Process Flow

1. The export clerk creates an ARE-3 and, when he is ready, posts it.

He also prints out the ARE-3 and encloses a copy with the delivery.

2. The shipping department sends the goods to the customer, together with the excise invoice and the ARE-3.

3. When the customer's warehouseman receives the goods, he checks whether the excise invoice and the ARE-3 match the goods.

If he finds that there are fewer goods than stated on the ARE-3, he enters the shortfall in the ARE-3.

He then fills out Part 2 of the ARE-3 (Certificate of Warehousing by the Consignee) and sends it back to the excise clerk.

4. When the excise clerk receives the ARE-3, he updates the ARE-3 in the R/3 System.

He fills out the various certification dates in the ARE-3 (for example, the date when the ARE-3 arrived back at your company).

If the warehouseman noted a shortfall in the quantity of goods, the excise clerk enters the shortfall as well. Since the whereabouts of the missing goods cannot be accounted for, they no longer qualify for exemption from basic excise duty. You must therefore pay the excise duty on the shortfall, plus interest, backdated to the date when you removed the goods from your premises. The clerk specifies which excise registers to pay the excise duty from.

The process is now complete.

 Creating ARE-3s 

Use

You create an ARE-3 when you want to send a customer a deemed export.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Deemed Exports  Central Processing  Create ARE-3.

2. In the top line:

a. Select Create ARE-3 b. Select Outgoing Excise Invoice.

c. Enter the excise invoice that the ARE-3 is for and choose . d. If the ARE-3 is to cover more than one excise invoice, repeat step (c) for each of them.

3. Assign the deemed export license to the ARE-3. 4. On the Addresses tab, enter the address of your local excise department.

Its address will be printed on the ARE-3. For more information, see Automatic Address Determination.

5. On the Additional Data tab, maintain any long texts required in the ARE-3.

This information will be printed on the ARE-3. For more information, see Long Texts.

6. On the Package Details tab, enter any relevant information about how the goods are packaged.

This information will also be printed on the ARE-3.

7. Save the ARE-3.

Result

The system creates the ARE-3 and assigns it an internal ARE-3 number (see ARE Document Numbering).

 Changing ARE-3s 

Use

Once you have created an ARE-3, you can still change the following information until you post it:

Which export licenses are assigned to the line items Which excise invoices are assigned to it Which addresses are entered Any long texts Any package details

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Deemed Exports  Central Processing  Change ARE-3.

2. In the top line:

a. Select Change. b. Select ARE-3 Internal Document.

c. Enter the internal ARE-3 number and choose .

3. Change data as required. 4. Save the ARE-3.

 Assigning Deemed Export Licenses to Line Items 

Use

When you create an ARE-3, assign the line items the deemed export license that covers them.

Procedure

1. In the item overview, select the line item that you want to assign the export license to. 2. On the License tab in the detail data, enter the internal license number and year.

 Posting ARE-3s 

Use

When you have created an ARE-3 and you are ready to ship the goods, you can post and print the ARE-3.

You can still make any changes that you need to before you post it.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Deemed Exports  Central Processing  Post ARE-3.

2. In the top line:

a. Select Post. b. Select ARE-3 Internal Document.

c. Enter the internal ARE-3 number and choose .

3. On the Certification Dates tab, enter the time that the date and time that the goods are being dispatched.

4. Save the document.

Result

The system:

Assigns the ARE-3 an official ARE-3 number (see ARE Document Numbering) Deducts the quantity or value of the goods from the license (see License Balances)

You can no longer change the ARE-3. However, you can still reverse it, if need be. Otherwise, the next step is to update it.

 Updating ARE-3s 

Use

When the goods arrive at the customer’s premises, the customer checks them against the excise invoice and the ARE-3. If there are any shortfalls in the quantity of the goods he records them on the ARE-3. The customer also fills out Part 2 of the ARE-3 (Certification of Warehousing by the Consignee) and sends you a copy.

When you receive the ARE-3, you update the ARE-3 in the system to match what the customer has written on the ARE-3.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Deemed Exports  Central Processing  Update ARE-3.

2. In the top line:

a. Select Update. b. Select ARE-3 Internal Document.

c. Enter the internal ARE-3 number and choose .

3. On the Certification Dates tab:

o Enter the Countersigned by Customer date as per the ARE-3. o Enter the Arrived Back date.

4. Enter any shortfalls that the customer has noted on the ARE-3. 5. Save the ARE-3.

Result

The ARE-3 is now complete.

 Entering Shortfalls in ARE-3s 

Use

If, for any reason, your customer finds that the quantities of the goods are lower than you have stated on the excise invoice and the ARE-3, he enters the shortfall on the ARE-3. You must then enter the shortfall in the ARE-3.

Since the whereabouts of the missing goods cannot be accounted for, they no longer qualify for exemption from excise duty. You must therefore pay the excise duty on the shortfall, plus interest, backdated to the date when you removed the goods from your premises.

Procedure

1. Choose the line item that you want to adjust.

2. In the detail data, on the Quantities tab, enter the amended quantity, and choose .

The system displays the shortfall in the Differential Qty field.

It calculates the interest due and displays it on the Utilization tab in the Interest Amount field.

3. On the Utilization tab, specify whether you want to pay the excise duty from register RG 23A, register RG 23C, or your PLA.

4. On the Document Details tab, enter the reason for the quantity change in the Reason Code field.

Result

When you save the ARE-3, the system:

Generates a Part II entry in the registers that you have specified (see Excise Registers)

Creates an accounting document to debit the excise duty to the CENVAT reversal account and credit it to the appropriate register accounts as follows (assuming, for example, that you want to pay the excise duty and interest from Register RG 23A and the PLA):

 Reversing ARE-3s 

Use

When you have posted an ARE-3, you can reverse it if necessary until such time as you enter the rewarehousing date.

By reversing an ARE-3, you forego the exemption from paying the excise duty that was due on the materials when you removed them from your premises. Consequently, you must pay the excise duty plus interest (see Interest Calculation).

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Deemed Exports  Central Processing  Reverse ARE-3.

2. In the top line:

a. Select Reverse ARE-3.

b. Select ARE-3 Internal Document.

c. Enter the internal ARE-3 number and choose .

3. On the Utilization tab, specify which excise registers you want to pay the excise duty and the interest from.

You can divide the amount payable between the different registers as you wish.

4. On the Document Details tab, enter the reason for reversing the ARE-3. 5. Save the document.

Result

The system:

Generates a Part II entry in the registers that you have specified (see Excise Registers)

Creates an accounting document to debit the excise duty to the CENVAT reversal account and credit it to the appropriate register accounts as follows (assuming, for example, that you want to pay the excise duty and the interest from Register RG 23A and the PLA):

Does not reinstate the value or quantity of the goods to the license

You can no longer change the ARE-3.

 Deemed Export License Summary 

Use

You use this report to prepare a summary of the deemed export licenses that you have entered in your system.

Features

To access the report, from the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Excise Bonding  Reports  Deemed Export License Summary.

Selection

Enter selection criteria as required. If you want to see which ARE-3s the licenses have been used for, select Display ARE-3s Referred To.

Output

For each license, the list shows the header data, the materials covered by the license, and the license balance.

If you selected Display ARE-3s Referred To, the list also shows the ARE-3s assigned to each license. If the list shows an ARE-3 without an official ARE-3 number, that means that the ARE-3 has only been created and not yet posted.

 ARE Documents 

Use

This function is for use by excise clerks and excise supervisors, so that they can create and process ARE-1s and ARE-3s used to execute exports and deemed exports.

The following documentation describes the functions common to all types of exports under excise regulations. For information about the individual procedures involved, see Exports Under Bond, Exports Under Claim for Rebate, and Deemed Exports.

To access the ARE Documents function, from the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  …. There are several different transactions under this menu path. For more information about the different transactions available, see Transaction Configuration.

Integration

This function allows you to create ARE documents using outgoing excise invoices as a reference document, which in turn you create on the basis of deliveries. As such it is integrated with Sales and Distribution (SD) and Materials Management (MM).

Any entries that the system makes in relation to an ARE document, in Part II of the excise registers RG 23 A and C, are also shown in the transaction. It is thus integrated with Financial Accounting (FI).

Features

The screen consists of the following areas:

Top Line

This is where you specify what document you want to process. When you create an ARE document, you specify the reference document in this area. When you process an ARE document that you have already created, you enter the ARE document number.

Header Data

This area consists of four tabs, each with information that relates to the whole of the excise document.

Tab Use

Document Details Basic header data, such as the internal and official ARE numbers and the document status.

Total Duties Total amounts of basic excise duty in the ARE document and any changes made by customs (ARE-1s) or the customer (ARE-3s)

Certification Dates

Various dates used to track the progress of the ARE document.

Bond/UT-1 Detail In exports under bond, shows which bond the export is covered by.

This tab is only shown for exports under bond.

Excise Invoice Summary

The excise invoices that the ARE document covers.

Addresses Shows the addresses of the local excise department and the customs office that is handling the ARE document.

Additional Data Fields for any additional information that you might want to enter, including various long texts to be printed on the ARE document.

Part II Any entries in Part II of the excise registers RG 23A, RG 23C, or PLA made as a result of your updating the quantities in the ARE document.

Note that this tab is not displayed if there are no Part II entries.

Item Overview

This area lists all of the items in the excise invoice. To process an item, you click the item number and process it in the detail data , but you process the items in the detail data area.

Detail Data

This area consists of seven tabs, each with information about a particular item.

Tab Use

Item Basic information about the material itself.

Quantities Information the quantity of goods in the excise invoice, and how much of this quantity have entries in Parts I and II of the excise registers.

Duty Rates The rates of excise duty on the item.

Duty Values The excise duty on the item, and how much of it has already been credited to the CENVAT accounts.

License The license that this item is covered by (deemed exports only).

Package Details Any information about the packages that needs to be printed on the ARE document.

Reference Documents

The other SAP documents associated with the item.

Additional Data Fields for any additional information that you might want to enter, this time at item level.

 Transaction Configuration 

Use

You can execute the ARE Documents function using different transaction codes. Each transaction code controls how users can process ARE documents and which reference documents they can use.

Features

The standard R/3 System comes with one central processing transaction and three individual processing transactions for each type of ARE document:

The central processing transactions allow users to carry out all functions on the ARE document and are suited to a system administrator, for example.

The individual processing transactions restrict the users to specific processing modes only (for example, creating and displaying ARE documents, or updating and displaying ARE documents).

You can assign these transactions to excise clerks or supervisors.

For a list of the transaction codes provided, see Transaction Codes.

Activities

Customizing

If the delivered settings do not meet your requirements, you can change them in Customizing for Logistics – General, by choosing Tax on Goods Movements  India  Business Transactions  Exports Under Excise Regulations  Transaction Configuration.

 ARE Document Numbering 

Use

In the R/3 System, each ARE document has two numbers: an internal number, which is the number that the system uses to identify the ARE document, and an official number, which corresponds to the serial numbers assigned to you by the excise department for the ARE document forms.

Activities

Customizing

To activate internal numbering, maintain the number range object J_1IINTNUM in Customizing for Logistics – General, by choosing Tax on Goods Movements India  Tools  Number Ranges.

To activate official numbering, maintain the number range object J_1IARE1 for ARE-1s, and J_1IARE3 for ARE-3s. Create a separate number range for each series group.

Day-to-Day Activities

When you create an ARE document, the system automatically assigns it an internal document number. The system only assigns the ARE document an official number when you post it. Both numbers are displayed on the Doc. Details tab.

You cannot change either of the numbers manually.

 Automatic Address Determination 

Use

When you print ARE documents, they must show the address of your local excise department and the customs department that will be handling the export.

Activities

Customizing

Enter the name and address of every excise department and customs department that you have dealings with in Customizing for Logistics – General, by choosing Tax on Goods Movements India  Master Data  Maintain Postal Addresses.

Define a default local excise department address for each series group, in Customizing for Logistics – General, by choosing Tax on Goods Movements India  Master Data  Maintain Series Groups.

Day-to-Day Activities

When you create an ARE document, the system automatically enters the address of the local excise department that you have assigned to the series group. The address data is shown on the Addresses tab.

You can change it if you want to.

 Long Texts 

Use

The forms that ARE-1s and ARE-3s are printed on contain spaces for various pieces of information, for example, the mode of transport or the export seal number. When you create an ARE document, you can enter this information using the long text function and it will be printed at the appropriate positions.

Activities

Customizing

Country Version India comes with long texts already customized to go with the ARE-1 and ARE-3 forms. However, if you need to, you can define other long texts in Customizing for Logistics – General, by choosing Tax on Goods Movements  India  Tools  Long Texts.

Day-to-Day Activities

When you create an ARE document and you want to enter a long text for it, on the Additional Data tab, choose   Long Text.

In the dialog box, double-click the sort of long text that you want to enter, and type the text in the field next to it.

When you print out the document, the texts appear at the appropriate positions.

 Printouts of ARE Documents 

Use

You can print out ARE-1s or ARE-3s on blank A4 paper. The system prints out the entire form with the details filled in from the ARE that you have created. Since multiple copies are required of each ARE document, the system automatically prints out the number of copies needed.

Features

Country Version India comes with all the settings you need to print out ARE-1s and ARE-3s in the appropriate format. Two SAPscript forms are provided, one for ARE-1s and one for ARE-3s. These forms use the same printing program and output type. The output type is J1IB.

Activities

Customizing

Check the output type settings provided in Customizing for Logistics – General, by choosing Tax on Goods Movements India  Business Transactions  Excise Bonding  Exports Under Excise Regulations  Printouts of ARE Documents.

Assign the output type to the ARE-1s and ARE-3s, in Customizing for Logistics – General, by choosing Tax on Goods Movements India  Business Transactions  Excise Bonding  Exports Under Excise Regulations  Make Settings for ARE-1 Procedure and …  Deemed Exports  Make Settings for ARE-3 Procedure.

In the same activities, specify how many copies of each ARE document you want the system to print.

Day-to-Day Activities

There are two ways of printing a document, as follows:

When you post an ARE, select Print ARE Document on the Document Details tab.

Then, when you save the ARE, the system prints out the number of copies that you have specified.

When you display an ARE, choose .

Note that this function is only available in display mode.

 Export Periods and Rewarehousing Periods 

Use

Exports under bond must be completed within the export period defined by the excise authorities, otherwise you no longer qualify for the exemption on the basic excise duty. Exports under claim for rebate must also be completed within this time or you will not be able to reclaim the duty. Similarly, deemed exports must also be completed within the allotted rewarehousing period.

The system keeps track of these periods for you automatically.

Activities

Customizing

Enter the export period in Customizing for Logistics – General, by choosing Tax on Goods Movements India  Business Transactions  Exports Under Excise Regulations  Exports.

Enter the rewarehousing period in Customizing for Logistics – General, by choosing Tax on Goods Movements India  Business Transactions  Exports Under Excise Regulations  Deemed Exports.

Day-to-Day Activities

If an ARE-1 or ARE-3 reaches the end of the period without being closed, you can apply to the excise department for an extension.

If the extension is granted, enter the extension date in the ARE document (see Extending Export Periods and Rewarehousing Periods).

If not, you must repay the excise duty that you posted to the CENVAT account for the goods. To do so, reverse the ARE-1 or reverse the ARE-3.

You can track which AREs are coming to the end of their export or rewarehousing periods using the Aging Analysis for ARE Documents.

 Extending Export Periods and Rewarehousing Periods 

Use

If you have not closed an ARE document within the prescribed export period or rewarehousing period and you have obtained an extension from the excise department, you can enter the new date in the document.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Exports or Deemed Exports  Central Processing  Update ARE-1 or Update ARE-3.

2. In the top line: a. Select Update. b. Select ARE-1 Internal Document or ARE-3 Internal Document.

c. Enter the internal ARE document number and choose .3. On the Certification Dates tab, fill out the Extended Until field.

This field only appears once an ARE document exceeds the export period or rewarehousing period.

4. Save the document.

Result

Once you have entered the extension date, you can continue processing the ARE document as normal.

 Interest Calculation 

Use

Whenever you have to pay the excise duty originally exempted by an ARE document, you also have to pay interest on that amount, backdated to the date on which you removed the goods from your premises.

The system calculates the amount of interest due automatically.

Features

Interest is due whenever you reverse an ARE document (for example, when an ARE-1 exceeds the export period and the excise authorities do not grant you an extension).

It is also due when a customs officer updates the quantity of goods on the ARE-1, or a customer updates the quantity of goods on an ARE-3.

The applicable interest rates are announced by the excise authorities.

Activities

Customizing

Maintain the interest rates in Customizing for Logistics – General, by choosing Tax on Goods Movements  India  Business Transactions  Exports Under Excise Regulations  Exports  Make Settings for ARE-1 Procedure and …  Deemed Exports  Make Settings for ARE-3 Procedure.

Day-to-Day Activities

The system automatically calculates interest when:

You enter shortfalls in ARE-1s or enter shortfalls in ARE-3s You reverse an ARE-1 or reverse an ARE-3

You can overwrite the excise duty and interest that the system proposes.

 Adding Excise Invoices to AREs 

Use

If you have already created an ARE document, you can still add additional excises to it until such time as you post it.

Procedure

1. On the Excise Invoice Summary tab, enter the excise invoice number and year in the Additional Excise Invoices field.

2. Choose .

 Removing Excise Invoices from AREs 

Use

If you have assigned an excise invoice to an ARE document and you wish to remove it, you can do so until such time as you have posted it.

Procedure

1. On the Excise Invoice Summary tab, enter the excise invoice number and year in the Additional Excise Invoices field.

2. Choose .

 Canceling AREs 

Use

If you have already created an ARE document but not yet posted it, you can cancel it if you need to.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Exports or Deemed Exports  Central Processing  Cancel ARE-1 or Cancel ARE-3.

2. In the top line: a. Select Cancel. b. Select ARE-1 Internal Document or ARE-3 Internal Document.

c. Enter the internal ARE number and choose .3. Save the document.

 Aging Analysis for ARE Documents 

Use

You use this report to prepare a list of all ARE documents by their status. It allows you to see which documents need to be processed within a certain amount of time, for example, which ARE-1s are approaching the end of their export period and need to be extended.

Features

To access the report, from the SAP Easy Access screen, choose Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Reports  Aging Analysis for ARE Documents.

Selection

1. Enter data as follows: a. In the Documents field, enter the status of the documents that you want to see. b. Then either enter a date range or enter a period.

The period can refer to the next so many days, or the past so many days, depending on what status you have selected.

2. Choose .

Output

Each document is assigned a status as follows:

: Activity is overdue : Activity is due today : Activity has been completed

The list is formatted using the SAP List Viewer: see this documentation for more information about navigating and formatting options within the list.

 Transaction Codes 

Transaction Function

J1IA101 Create, change, update, cancel, display ARE-1

J1IA102 Create, change, display ARE-1

J1IA103 Update, display ARE-1

J1IA104 Cancel, display ARE-1

J1IA301 Create, change, update, cancel, display ARE-3

J1IA302 Create, change, display ARE-3

J1IA303 Update, display ARE-3

J1IA304 Cancel, display ARE-3

J1IBN01 Create bond

J1IBN02 Change bond

J1IBN03 Display bond

J1IBN04 Cancel bond

J1IBN05 Close bond

J1ILIC01 Create license

J1ILIC02 Change license

J1ILIC03 Display license

J1ILIC04 Cancel license

J1ILIC05 Close license

J1IANX18 Pro Forma of Running Bond Account

J1IANX19 Statement Regarding Export of Excisable Goods

J1IARE_AGE Aging Analysis for ARE Documents

J1IBONSUM Bond Summary Report

J1ILICSUM License Summary Report

 Form Tracking 

Use

You use this function to record and monitor forms relating to tax concessions. You can record the forms that your customers send you against their sales orders, and those that you send to your vendors against your purchase orders.

You can also use these functions for monitoring other routine activities, for example, when you transfer money to your personal ledger account (PLA) using a TR6 challan.

Features

Forms for concessional sales tax must be submitted by the buyer after the goods have been delivered or after it has paid the invoice. In the case of interstate concessional sales tax rate sales, the concessional rate is granted against the issue of C-forms.

Exemption from excise duty may be granted by the excise authorities under certain circumstances, for example, on exports or deemed exports. In such cases, the buyer has to produce certain statutory forms to claim concessional rates of excise duty or exemptions. The exporter has to provide the vendor with proof of export (form AR3A).

If the buyer is unable to furnish the certificate at the appropriate time, material supply should be at the normal rate of sales tax or excise duty.

Activities

To access the form tracking function, from the SAP Easy Access screen, choose Indirect Taxes Forms Tracking  Create/Change/Display.

 CENVAT Adjustment Postings 

Use

You use these functions if you need to make an adjustment posting to any of your CENVAT accounts. You can make adjustment postings to account for:

Scrap Materials that you have not used in production Additional excise paid by vendors Money that you have transferred to your personal ledger account Other transactions

You can also use this function to cancel excise invoices.

Features

Each of the different types of adjustment postings are documented separately. However, they all work on the same principle, as follows.

Reference Document

On the initial screen of the transaction, you specify the reference document, that is, the document which the adjustment posting is to refer to – either an internal document, such as a material document or a subcontracting challan – or an external document, such as an incoming excise invoice.

You also specify which registers are affected by the posting. In many cases, the adjustment will have to be remitted to the authorities on a fortnightly basis. The adjustment will then be included when you run the Remittance of Excise Duty Fortnightly report. If the adjustment has to be remitted immediately, you specify which register is affected.

Excise Details

When you proceed to the detail screen, the system automatically shows the line items from the reference document, if it is an internal document. You specify how much excise duty is to be adjusted and which CENVAT accounts the adjustment posting is to be made to.

When you edit the excise details, there are a number of functions that are available, depending on the type of adjustment posting:

Assigning excise invoice to line items Specifying which G/L accounts are to be adjusted Displaying balances of CENVAT accounts

When you save your changes, the system creates an accounting document to make the appropriate postings.

 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.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Excise JV  Create  Matl write-off. 2. Enter data as required, including:

o Document number

Enter the number of the document that you used to scrap the material.

o 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. Choose .

The system displays the information from the material document.

4. Adjust the posting date as necessary. 5. Adjust the excise duty for each line item either:

o Manually o By assigning the line item to an excise invoice

6. Specify which G/L accounts are to be posted to. 7. Save the adjustment posting.

 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. From the SAP Easy Access screen, choose Indirect Taxes  Excise JV  Create  Matl non-prod. 2. Enter data as required, including:

o Document number

Enter the number of the material document that the adjustment posting is to refer to.

o 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. Choose .

The system displays the information from the material document.

4. Adjust the posting date as necessary. 5. Adjust the excise duty for each line item either:

o Manually o By assigning the line item to an excise invoice

6. Specify which G/L accounts are to be posted to. 7. Save the adjustment posting.

 Making Adjustment Postings for Additional Excise Paid by 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. From the SAP Easy Access screen, choose Indirect Taxes  Excise JV  Create  Additional excise.

2. Enter data as required.

In the Document number field, enter then number of the document sent to you by the vendor.

3. Choose . 4. Adjust the posting date as necessary. 5. Enter the amount of excise duty in either of the following ways:

o To enter line items for different materials and the excise duty accordingly, choose and enter the line items in the table.

o To enter the excise duty only, choose and enter the excise duty in the totals fields at the foot of the screen.

6. If the duty qualifies as countervailing duty (CVD):

a. Select CVD applicable. b. Enter the CVD amount in the BED amount field.

7. Specify which G/L accounts are to be posted to. 8. Save the adjustment posting.

 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).

Prerequisites

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. From the SAP Easy Access screen, choose Indirect Taxes  Excise JV  Create  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.

3. Choose .

If you entered the accounting document number, the system displays the information from it.

4. Enter the amounts against the accounts that you require. 5. Save the adjustment posting.

 Canceling Excise Invoices 

Use

You follow this procedure in order to cancel an outgoing excise invoice. It reverses any excise duty accounted for.

Procedure

1. From the SAP Easy Access screen, choose Indirect Taxes  Excise JV  Create  Cancel exc. inv. or Indirect Taxes  Sales and Outbound Movements  Excise Invoice Create/Change/Display  .

2. Enter the number, year, and series group of the excise invoice that you want to cancel.

A dialog box appears.

3. Choose Yes. 4. Save the adjustment posting.

 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. From the SAP Easy Access screen, choose Indirect Taxes  Excise JV  Create  Other adj. 2. Enter data as required, including:

o Document number

Enter the number of the external document that you want to refer to.

o 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. Choose .

The system displays the information from the material document.

4. Adjust the posting date as necessary.

5. Enter the amount of excise duty in either of the following ways:

o To enter line items for different materials and the excise duty accordingly, choose and enter the line items in the table.

o To enter the excise duty only, choose 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.

 Assigning Excise Invoices to Line Items  

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 from this vendor for this particular material.

2. Select the excise invoice that you want and choose .

The system:

o Enters the excise invoice document number in the Ref. doc. field (Reference document). o 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.

You have a line item with ten plates of glass that you have broken and are to be scrapped. You have three excise invoices from the same vendor to choose from. You pick one for 20 plates of glass with BED at INR 200. The system automatically apportions INR 100 to the line item that is to be reversed.

 Specifying Which CENVAT Accounts to Adjust 

Use

When you make an adjustment posting, you have to specify which CENVAT accounts are to be adjusted.

Prerequisites

You have specified whether you want the users to be able to add extra debit accounts (see below), in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Basic Settings  Maintain Company Codes.

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, choose .

 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.

 Roles 

The following documents describe the roles delivered with Country Version India (CIN). For more

information about roles in general, see Creating Activity Groups ("activity group" is the old term for "role").

 India Localization 

Technical name: SAP_CIN

Tasks

This role covers all of the tasks associated with Country Version India (CIN), including Customizing, day-to-day operations, and reporting.

This is the role that all the menu paths given in this documentation are based on.

 CIN Customizing and Master Data Maintenance 

Technical name: SAP_CIN_SUPER_USER

Tasks

This role covers all the Customizing activities relating to Country Version India (CIN), in all applications. It also covers the maintenance of excise master data.

 Excise Manager (Materials Management) 

Technical name: SAP_CIN_MM_MANAGER

Tasks

This role covers all administrative tasks in Country Version India (CIN) that relate to excise duty in the areas of procurement and subcontracting. It includes Customizing activities; all day-to-day operations; and reporting.

Activities in Materials Management (MM)

In Customizing and master data, the Excise Manager is authorized to:

Work with the CIN Implementation Guide (IMG) Use the health check tool Define number ranges for excise invoices Maintain excise master data Make retrospective price amendments

In your day-to-day operations, this role allows you to:

Capture, change, display, post, and cancel incoming excise invoices Capture excise invoices at depots Complete subcontracting challans and perform quantity reconciliation Post excise invoice journal vouchers Track forms

Activities in Financial Accounting (FI)

The Excise Manager can:

Create the excise registers Transfer outstanding CENVAT credit on capital goods to the appropriate CENVAT accounts

 Excise Supervisor (Materials Management) 

Technical name: SAP_CIN_MM_SUPERVISOR

Tasks

This role covers most of the tasks in Country Version India (CIN) that relate to excise duty in the areas of procurement and subcontracting. It includes all day-to-day operations and reporting, but only one Customizing activity.

Activities in Materials Management (MM)

In Customizing and master data, the Excise Supervisor is authorized to:

Define number ranges for excise invoices Maintain excise master data Make retrospective price amendments

In your day-to-day operations, this role allows you to:

Capture, change, display, post, and cancel incoming excise invoices Capture excise invoices at depots Execute all activities relating to subcontracting challans Post excise invoice journal vouchers Track forms

Activities in Financial Accounting (FI)

The Excise Supervisor can:

Create the excise registers Transfer outstanding CENVAT credit on capital goods to the appropriate CENVAT accounts

 Excise Clerk (Materials Management) 

Technical name: SAP_CIN_MM_CLERK

Tasks

This role covers the tasks relating to capturing incoming excise invoices.

Activities in Materials Management (MM)

The Excise Clerk can:

Capture excise invoices (of all types) Track forms

 Excise Manager (Sales and Distribution) 

Technical name: SAP_CIN_SD_MANAGER

Tasks

This role covers the administrative tasks in Country Version India (CIN) that relate to excise duty in the area of sales. It includes all Customizing activities; day-to-day operations; and reporting.

Activities in Sales and Distribution (SD)

In Customizing and master data, the Excise Manager is authorized to:

Work with the CIN Implementation Guide (IMG) Use the health check tool Maintain excise master data Make retrospective price amendments

In your day-to-day operations, this role allows you to:

Create and verify outgoing excise invoices for other movements Create excise invoices in batches Post excise journal vouchers Print excise invoices Track forms

In reporting, this role also allows you to:

Remit excise duty using the fortnightly utilization program Print 57AE returns

 Excise Supervisor (Sales and Distribution) 

Technical name: SAP_CIN_SD_SUPERVISOR

Tasks

This role covers the tasks in Country Version India (CIN) that relate to excise duty in the sales area. It includes the maintenance of master data; day-to-day operations; and reporting. It does not, however, include Customizing.

Activities in Sales and Distribution (SD)

In master data, the Excise Supervisor is authorized to:

Maintain excise master data Make retrospective price amendments

In your day-to-day operations, this role allows you to:

Create and verify outgoing excise invoices for other movements Create excise invoices in batches Post excise journal vouchers Print excise invoices Track forms

In reporting, this role also allows you to:

Remit excise duty using the fortnightly utilization program Print 57AE returns

 Excise Clerk (Sales and Distribution) 

Technical name: SAP_CIN_SD_CLERK

Tasks

This role covers the tasks relating to the creation of excise invoices.

Activities in Sales and Distribution (SD)

The Excise Clerk can:

Create excise invoices for other movements

Print excise invoices Track forms

 Subcontracting Clerk 

Technical name: SAP_CIN_SUBCONTRACTING_CLERK

Tasks

The Subcontracting Clerk is authorized to create, change, and display subcontracting challans.

 Bonding Clerk 

Technical name: SAP_CIN_BONDING_CLERK

Tasks

This role covers all tasks relating to exports under excise regulations.

Activities in Materials Management (MM)

The Bonding Clerk can:

Create, change, display, and cancel excise bonds and deemed export licenses Create, change, update, display, and cancel ARE documents Execute all the associated reports

 TDS Manager 

Technical name: SAP_CIN_TDS_MANAGER

Tasks

This role covers all the activities in Country Version India (CIN) that relate to tax deducted at source (TDS). It includes all Customizing activities, day-to-day operations, and reporting.

Activities in Financial Accounting (FI)

In Customizing, the TDS Manager is authorized to:

Work with the CIN Implementation Guide (IMG) Use the health check tool

In day-to-day operations, you can:

Carry out all the activities relating to the remittance of tax withholdings Make adjustment postings Print and cancel TDS certificates for vendors Post and clear withholding tax on clearing accounts (Extended Withholding Tax only) Print TDS certificates for customers

In reporting, the TDS Manager can:

Prepare annual returns for TDS (Classic TDS and Extended Withholding Tax) Prepare MIS report (Extended Withholding Tax)

 TDS Supervisor 

Technical name: SAP_CIN_TDS_SUPERVISOR

Tasks

This role covers the administrative activities in Country Version India (CIN) that relate to tax deducted at source (TDS). It includes all day-to-day operations and reporting, but not Customizing.

Activities in Financial Accounting (FI)

In day-to-day operations, the TDS Supervisor can:

Carry out all the activities relating to the remittance of tax withholdings Make adjustment postings Print and cancel TDS certificates for vendors Post and clear withholding tax on clearing accounts (extended withholding tax only) Print TDS certificates for customers

In reporting, you can:

Prepare annual returns for TDS (Classic TDS and Extended Withholding Tax) Prepare MIS report (Extended Withholding Tax) Archive TDS documents

 TDS Clerk 

Technical name: SAP_CIN_TDS_CLERK

Tasks

This role covers the day-to-day operations relating to tax deducted at source (TDS).

Activities in Financial Accounting (FI)

The TDS Clerk can:

Carry out all the activities relating to the remittance of tax withholdings (Classic TDS and extended withholding tax)

Post and clear withholding tax on clearing accounts (extended withholding tax only)

 Register Maintenance Clerk 

Technical name: SAP_CIN_REGISTER_CLERK

Tasks

This role covers all the activities relating to the preparation of excise and sales tax registers.

 Transaction Codes for India 

Transaction Action

J1I2 Prepare a sales tax register

J1I3 Create outgoing excise invoices in batches

J1I5 Update the RG 1 and Part I registers

J1IEX Incoming Excise Invoices (central transaction)

J1IEX_C Capture an incoming excise invoice (excise clerk)

J1IEX_P Post an incoming excise invoice (excise supervisor)

J1IF01 Create a subcontracting challan

J1IF11 Change a subcontracting challan

J1IF12 Display a subcontracting challan

J1IF13 Complete, reverse, or recredit a subcontracting challan

J1IFQ Reconcile quantities for subcontracting challans

J1IFR List subcontracting challans

J1IH Make a CENVAT adjustment posting

J1IIN Create an outgoing excise invoice

J1IJ Assign excise invoices to a delivery for sales from depots

J1INJV Adjust withholding tax Item

J1INREP Reprint a withholding tax certificate for a vendor

J1IQ Year-End Income Tax Depreciation Report

J1IR Download register data

J1IS Process an excise invoice (outgoing) for other movements

J1IU Process exemption forms

J1IW Verify and post an incoming excise invoice

J1IX Create an incoming excise invoice (without reference to purchase order)

J2I8 Transfer excise duty to CENVAT account

J2IU Remit excise duty fortnightly

J2I9 Monthly CENVAT return

J1IG Excise invoice entry at depot

J1IGA Create additional excise entry at depot

J2I5 Extract data for excise registers

J2I6 Print excise registers