Country Version India

Training Material

Training for:
CIN 3.0 A

Document Version 1.0

Copyright

Copyright 1999 SAP AG. All rights reserved.

Neither this training manual nor any part thereof may

be passed on to others, copied or reproduced in any
form or by any means, or translated into another
language, for any purpose without the express prior
consent in writing of SAP AG. The information
contained in this document is subject to change and
supplementation without prior notice.

All rights reserved.

Target Group

 Project members
 People involved in organizing and carrying out Central Excise,
Sales Tax and TDS tasks
 Consultants involved in project management, MM, SD and FI
modules
Contents

 Chapter 1 - Overview  Chapter 8 - Register printing

 Chapter 2 - Customization  Chapter 9 - Additional
Functionality
 Chapter 3 - Master data
 Chapter 10 - Sales
 Chapter 4 - Procurement
 Chapter 11 - Depot
 Chapter 5 - Capital goods
 Chapter 12 - Classic TDS
 Chapter 6 - Sub contracting
 Chapter 13 - Extended WT
 Chapter 7 - Excise JV
Country Version India (CIN)

The Country Version India is an add-on component for SAP R/3.

 CIN 3.0A is released as add-on for R/3 4.6 B.
 CIN complements R/3 in delivering new functionality for India-
specific statutory requirements.
 CIN facilitates handling of tax implications during the procurement
and sales cycles.
Country Version India - The Need ?

Enhancement needed to cover the following India specific requirements

 Excise
 CENVAT
 Sales Tax
 Octroi
 Tax deduction at Source
 Maintenance and Printing of statutory ledgers
Excise Tax Solution
Vendor Factory Subcontractor Depot Customer
To
From
Vendor
Inbound Movements
Receipt of Material Receipt of Material
Outbound Movements

Factory
Removal of Receipt of Material Working with Receipt of Material Removal of
Goods Subcontractors Goods
Removal of Removal of
Goods Goods
Subcontractor
Working with Working with
Subcontractors Subcontractors

Depot Removal of Receipt of Material Working with Receipt of Material Removal of

Goods Subcontractors Goods
Removal of Removal of
Goods Goods
Customer
Receipt of Material Receipt of Material

CIN Excise Tax Engine

Adjustments and Reversals
Legal Reporting and Payment
Excise & CENVAT

Customizing and Master data maintenance

 Company and Plant settings
 Excise Registration details
 Excise rate maintenance based on chapter Id, Vendor/Customer
status
 Maintain number ranges for Registers, Excise Invoice
 Assign G/L accounts
CIN Excise Tax Engine - Highlights

Rate Maintenance and

Calculation -
Comprehensive and
Adaptable to Legal
Changes

Various Types of Excise Duties (BED, AED, & SED) & Cess
Ad-valorem and Specific (Quantity-based) Tax Rates
Exceptional Rates
Concessional Rates Based on Forms
Assessable Value
Different Base Values for Excise and Sales Tax
Vendor and Customer Status
Amendment of Open Sales and Purchase Orders
Excise Concession Forms Tracking
Receipt of Material - Highlights

CENVAT Credit Management -

Fully Integrated in the Procurement
Capture of Excise Invoice Process
Multiple GR’s per Excise Invoice
Inventory Valuation with Excise
Posting of CENVAT Credit
Register Update (Plant and Depot)
Invoice Verification with Excise

Receipt of M aterial

At Factory At Depo t

P urchase Transfer from Factory P urchase Transfer from Factory

Transfer from Depo t Return from Custom e r Transfer from Depo t Return from Custom e r

Transfer from S ubcontracto r Transfer from S ubcontracto r

Receipt of Material - New Excise Tax Functions

Multiple Registrations per Plant

Excise Invoice Query
Depots at Excise Group Level
List of GR’s without Excise Invoice
Multiple GR’s per Excise Invoice at Excise Group level

P u rc h a s e O rd er

E x c is e In v o ice G o o d s R e c e ip t
C a p tu r e

50% CENVAT Credit on Capital Goods E x c is e In v o ice

V e rific a tion Default Quantity from Excise Invoice
Follow-on functions for Capital Goods
Quantity Mismatch Indicator
CENVAT for CVD
In v o ic e Ve rific a tion
Exchange Rate for CVD
Alternate Account Determination
Profit Center Accounting
Invoice Verification with Excise and CVD
Support of Evaluated Receipt Settlement (ERS)
Vendor Payment with CENVAT Credit on Hold
Posting Parked Documents with Excise
Removal of Goods - Highlights

Rem oval of G oods

From Factory From Depo t

S ale Transfer to Factory S ale Transfer to Factory

Return to V endo r Transfer to Depo t Return to V endo r Transfer to Depo t

Return to Custom e r Transfer to S ubcontracto r Return to Custom e r Transfer to S ubcontracto r

Full Compliance across the

Distribution Process

Printing of Excise Invoice

Posting of Excise Tax Liability
Optional Combination with Commercial
Invoice
Optional Excise Invoice Split
Register Update (Factory and Depot)
Removal of Goods - New Excise Tax Functions

Streamlined Excise Tax Delivery

Batch Utilization
Processing
G oods Issue

E xcise cum Comm ercial Com m ercial Invoice P roform a Invoice

Invoice

E xcise Invoice E xcise Invoice

Com m ercial Invoice

Automatic Determination of Excise and Series Group
Excise Invoice Creation in Background

Customizable Layout Set for Printing of Excise Invoice

Capture of Pre-Printed Excise Invoice Number
Document Flow for Excise Invoices
Excise Invoice for Returns Without Payment of Duty
Separate Exchange Rate for Export Invoice
Use of Tax Classification for Excise Concession Forms
Excise Invoice Selection and RG23D Entry for Removals from Depot
Removal of Goods : Excise Invoice Generation

Excise Invoice Generation

 Excise Invoice Serial number based on Series group
 allows multiple registrations, excise invoice number
ranges, CENVAT accounts per plant
 allows creation of excise invoice where no commercial
invoice is required (e.g. transfer to depot, free supplies
etc.)
 allows delayed creation of commercial invoice (e.g.
exports)
 Excise and sales tax concession forms based
on customer and material tax classification
 Reversal of Excise invoice without
marking it for cancellation
Removal of Goods: Excise duty Computation

Excise Duty computation for

 Sale with Exemption Forms
 Exports sale under bond / without bond
 Deemed Exports (Sale to 100% EOU)
 Products issued free of charge
 manufactured materials drawn for sampling checks
 Remission for special industrial purposes (Chapter X
procedures)
 Removal of material (scrap sales)
Removal of Goods: Fortnightly CENVAT Utilization

Accumulation of Excise duty payable in separate account

 Fortnightly Payment of Excise Duty effected through
 Debit to CENVAT Register (RG23)
 Debit to PLA Register
 Immediate Excise duty utilization from CENVAT accounts option is also
available
Removal of Goods: Depot operations

Stock Transfer and Sale from Depot

 Receipt at Depot from Manufacturing Plants or
Direct Purchases
 Maintenance of RG23D registers at Depot
 Depot sale Invoice to take into account duty
captured from Incoming Excise Invoice

Removal of Goods

From Factory From Depot

Sale Transfer to Factory Sale Transfer to Factory

Return to Vendor Transfer to Depot Return to Vendor Transfer to Depot

Return to Custome r Transfer to Subcontractor Return to Custome r Transfer to Subcontractor

CENVAT Availment & Utilization (Pre Budget 2000)

DEPOSIT FUNDS
IN PLA ACCOUNT

Update
PLA Register PLA Register

SALES
EXCISE INVOICE
GOODS PROCESSING
RECEIPT
RG23 Registers SELECT
Part I REGISTER

DESPATCH
VENDOR
EXCISE INVOICE
PROCESSING

RG23 Registers
Part II
CENVAT Availment & Utilization (Post Budget 2000)

SALES EXCISE
ON-LINE TRANSACTIONS INVOICE PROCESS
GOODS
RECEIPT
CENVAT on hold
for Cap Goods
Credit CENVAT
on-hold A/c DESPATCH
Debit ED Payable A/c
VENDOR EXCISE
INVOICEPROCESS
Credit CENVAT A/c Excise Duty
CENVAT Account
Payable A/C
Debit CENVAT A/c

Credit ED Payable A/c

FORTNIGHTLY TRANSACTIONS (Consolidated Entry)

DEPOSIT SELECT
FUNDS REGISTER Excise duty
IN PLA
Utilization
ACCOUNT
PLA A/C Transaction
Credit Debit PLA A/c
PLA Account
Adjustments and Reversals - Highlights

CE NV AT Adjustm ent

S crap

Non-production use

Additional Excise P aid by Vendor

Deposit into P LA through TR6

Cancel E xcise Invoice

Flexibility for 100% Compliance
W ith Reference to E xternal Docum ent

Management of CENVAT Credit for Capital Goods

CENVAT Reversals and Adjustments
One-Step Reversal of Excise Invoice
Exception Handling through Excise JV

Shelf Life
Destructive Expired
Testing
Shortages
while in
storage
Material
Write off

Damaged in
store
/transit Discontinue
Working with Subcontractors - Highlights

Full-Cycle Monitoring of 57F4 Process Status

Annexure IV Report
57F2/F3 Process

Closed-Loop Control of
Subcontracting Process

P u rc h a s e O rd er

T ra n s fe r P o s ting

C h a lla n C re a tion Handling of Kits and Multiple-lot Dispatches

Multiple Challans for a Transfer Posting
One-step Challan Creation and Printing
G o o d s R e c e ipt
Multiple Challan References per GR
Q u a n tity R ec o n c ilia tion
Reconciliation Workbench

C h a lla n C o m p le tion CENVAT Reversal for Non-receipts

CENVAT Re-credit
Tax Deducted at Source with EWT - Highlights

P osting TDS w ith the E xtended W ithholding Tax S olution (E W T)

TDS on Dow n P aym ents TDS on Invoices TDS on P rovisions TDS Adjustm ents

TDS Adjustm ent at P rovision Clearing

TDS Adjustm ent at Invoice Clearing

TDS Accounting Made Easy through

EWT Core Functionality...

Accumulations
Multiple vendors in One Invoice
Multiple Tax Line Items in One Invoice
Calculation Alternatives (Gross, Net, Offset)
Rounding Options
Adjustments
TDS Deducted by Customers
Tax Deducted at Source with EWT - New Functions

…plus Powerful Enhancements for India

TDS on Invoices, Down Payments and Provisions

TDS Adjustments on Clearing of Down payments and Provisions
TAN represented by organizational entity “Business Place”
Deduction, Remittance, and Certificate Issue for Multiple TAN
Payment Due Dates by Business Place
Integrated Challan Update and Account Clearing
Certificate Printing with Customizable Layout Sets
Provisional Tax on Services
TDS Surcharge
TDS Certificates from Customers
Annual Returns for Sections 194C, 194D, 194I, 194J
Tax deducted at Source (TDS): Classic

 Enhancement of With holding tax functionality to suit Indian

requirements.
 Provision to maintain Multiple accounts (section wise)
 TDS deduction for
 Down payments
 on invoice booking
 Challan Updation
 Certificates printing, reprinting, cancellation
 Annual returns for
 Section 194 C, Section 194 D,
 Section 194 I, Section 194 J
Tax Deducted at Source (Classic) - New Functions

TDS Processing in Batch

 Posting with Business Area

 Posting to Special Periods

 Copy Invoice Reference

 Profit Center Posting

 TDS Certificates for One-Time Vendors

 Annual Returns

 Copy House Bank to TDS Documents

Other Indirect Taxes - Highlights

It is not just Excise...

CST and LST rates

Sales Tax Setoff
Purchase Tax
Octroi
One Commercial Invoice for Multiple Excise Invoices
Sales Tax

 Paid on ad valorem basis (Tax procedure Template provided)

 Basic price of material
 Plus Excise Duty
 Minus Trade Discount (During Sales Process)
 Determination of Local Sales Tax & Central Sales Tax through
calculation formula
 All states have sales tax - Tax rates are not uniform - determined by
respective state governments in their annual budgets. (Tax rates to be
maintained through Tax codes)
 Concessional rates of sales tax
 Sales Tax set off percentages (Set off percentages can be maintained
against material). Amount set off does not get into inventory valuation.
Octroi

 Levy charged by the corporation of the city

 Varies from state to state
 A percentage or a fixed amount
 Computed on Basic price + excise duty + sales tax
 Functionality supported through special condition type in the
pricing procedure template
Register Printing and reporting

 Reporting and Printing options

 RG 23 A Part I
 RG 23 A Part II (CENVAT Register)
 RG 23 C Part I
 RG 23 C Part II
 RG 23 D
 RG 1, PLA
 57AE monthly returns
 Annexure IV (Subcontracting)
 Sales Tax register
 RT 12 returns
 TDS Annual Returns & Certificate Printing
 SAP also facilitates data download in a ASCII (text) file for select registers.
CIN and the mySAP.com Workplace Portal

CIN users act in roles in a company: Excise

The One-Menu-Fits-All Manager, Excise Clerk, TDS Manager, …
Times are Over A user can perform multiple roles. CIN delivers
13 role templates. They are easy to change and
extend per role and per user.

The mySAP.com Workplace

Portal with its taylor-made
LaunchPad for role-specific
activities provides immediate
access to mySAP.com
business scenarios, non-SAP
components, and the Web.

The Workplace can be

launched through a web
browser for unlimited access
anytime, anywhere.
Structured Approach

 Separate menu for India Localization

 Implementation Guide (IMG)
 More structured approach to configuring
India version tables
 On-line Help
 All CIN related Master Data maintained at one
place
 Controlled JV transactions to handle Exceptions
 Authorization profile (Authorizations at menu
button level for Excise JV & Capital goods
CENVAT posting transactions)
 Configurable messages (Currently facility
available for few critical messages )
 Customizing wizard for health check
CIN Online Help

Access to the CIN User Manual -

Every User, Anytime, Anywhere

The CIN Online Help is a

comprehensive user manual
with detailed information on
the CIN functionality from a
user’s perspective.

It’s ease-of-use and

accessibility makes it the
ideal companion to a
feature-packed localization
solution.
Summary

 Country Version India provides

functionality for India specific statutory
requirements
 Basic information required for maintaining
the excise records like Material, Vendor,
customer codes will be taken from standard
SAP
 Basic data will be captured for generating
the statutory documents.
 Register Printing utility provided for Excise
and Sales Tax registers.