Country Version India

A Country Version is designed specifically to cater the business operations of t

hat country over and above the generic SAP system functionalities. It comprises
of functionalities degined for the laws and business practices pertaining to the
country.
Most of the country-specific functions for India relate to Financials and Logist
ics.
The main areas are as follows:
u2022 Excise duty and the central value-added tax system (CENVAT)
u2022 Withholding tax (also known as tax deducted at source)
u2022 Sales tax
u2022 Maintenance and printing of statutory excise registers
The official help documentation for Country Version India is here.

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In Indian Taxing procedure, Excise Duty plays a vital role in manufacturing scen
ario's. Excise related configuration is known as CIN configuration. CIN Configur
ation is a topic in itself.

Here is some information on CIN Configuration. While it may not appear understan
dable as given below, it will be understood better when you check on screen.
Country Version India comes with four pricing procedures as follows:
u2022 JINFAC (Sales from manufacturing plants)
u2022 JINEXP (Export sales)
u2022 JINDEP (Sales from depots)
u2022 JINSTK (Stock transfers

CIN:

IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings >
Maintain Excise Registrations

Use
In this IMG activity, you maintain the data relating to your excise registration
s.
Activities
Enter each of your excise registrations, specifying a four-character code for ea
ch
Excise Registration IDs
In this activity, you maintain excise registration IDs. You create one ID for ea
ch of your business's excise registrations.

Activities
For each excise registration in your business create a registration ID and state
:
u2022 Which taxes the registration covers (additional excise duty, special excis
e duty, and cess)Fields for any taxes that are not covered will be hidden in tra
nsactions involving excise duty.

u2022 The maximum number of items to be printed on each excise invoice

u2022 Whether you are allowed partial CENVAT credits

Maintain Registration ID NUMBER, Excise code number, excise registration number

Excise Registration Number

A number assigned to each premises or location that has registered as a manufact
urer with the excise authorities.
Every entity with an excise registration number is required to keep its own exci
se books.

ECC Number
Specifies the organization's ECC number.

Excise Registration Number

A number assigned to each premises or location that has registered as a manufact
urer with the excise authorities.
Every entity with an excise registration number is required to keep its own exci
se books.

Excise range: Specifies the excise range in whose area the excise registration i
s located.

Excise Division
Specifies the excise division in whose area the excise registration is located.

Excise Collectorate
The code of the excise collectorate in whose area the excise registration is loc
ated.

Indicator for confirming AED usage

Additional Excise Duty Percentage. These are leviable under the additional dutie
s of excise act. These duties are in addition to basic excise duty and special e
xcise duty.
Example
Additional Excise duty is leviable in case of textile products, tobacco and suga
r.

Similarly for SED CESS

Number of Items in Excise Invoice

Shows the maximum number of line items that the authorities allow per excise inv
oice.
Dependencies
This information is used when you create an excise invoice in Sales and Distribu
tion (SD) for factory sales and for other movements.

This information is used to split the transfer postings' items into multiple sub
contracting challans.

Excise register set description

Description of the excise registers set.

Partial CENVAT Credit

Indicates that the excise registration ID is allowed to credit only a portion of
its input excise duty to its CENVAT account.
Dependencies
When you post a goods receipt, the system splits the input excise duty on the ma
terial into its deductible and nondeductible amounts. It posts the deductible du
ty to the appropriate CENVAT account, and adds the nondeductible duty to the mat
erial value.

This information is also shown when you post the vendor's excise invoice.

Maintain Company Code Settings

Use
In this IMG activity, you maintain the data relating to your company codes.
Document Type for CENVAT Postings
It controls, which document type the system uses when making CENVAT postings in
Financial Accounting (FI). Here ED is document type for cenvat posting.

Indicator for providing debit account overwriting

Debit Account Overwrite Indicator. X - Indicates debit accounts can be overwritt
en. Use In excise journal voucher transaction. It provides the flexibility to th
e user to enter the debit account of his choice depending on the nature of trans
action.

Automatic balance Indicator

Excise year start month

The calendar month marking the beginning of the excise year
Use

This start month represents the month for the start of the excise invoice number
range. The month 04 is entered here indicating April of the calendar year as th
e start month for excise invoices. Any change by the Excise authorities regardin
g start month should be taken care of by an entry in this field and initializati
on.

Excise invoice selection procedure

Excise invoice selection type. To indicate the method opted by the company for s
electing the excise invoice. It can be either earliest or latest invoices that w
ere received.

Number of excise invoices to be selected

Indicates the number of excise invoices that needs to be selected in the excise
invoice selection.

Days to be considered for excise invoice selection

Number of days from document date for excise invoice selection.
Example
If the value of this field is 20 and today is 28-03-97. The excise
invoice selection will show the related invoices only for the
period 08-03-97 to 28-03-97.

Document type for TDS FI posting

Financial accounting document type for TDS posting.

Document type for FI posting on Utilisation

Financial accounting document type for TDS posting.

Indicator for item level excise duty round off

This indicator is to be used for deciding whether Item level
rounding off is required during procurement cycle. If marked
duty amount will be rounded off to the nearest rupee at the
l. This will not round off the CENVAT credit to be taken. If
less than one rupee then no rounding is done

excise duty amount

'X' then the excise
Purchase order leve
the duty amount is

Rounding off of Excise duty for outgoing excise invoice

You can round off the Excise amount to be paid during an outgoing Excise invoice
by marking this indicator as 'X'. The rounding is done at the item level for ea
ch item where the amount is greater than 1 Rupee.

Immediate Credit on Capital Goods

Instructs the system, when you verify a goods receipt for capital goods, to imme
diately post half of the input excise duty to the appropriate CENVAT accounts.

The rest is posted the CENVAT on hold account, for use in the following year.

CVD Clearing Account

Specifies which G/L account the system credits when you take a CENVAT credit on
countervailing duty in the Incoming Excise Invoices transaction.

Exchange rate type

Key representing a type of exchange rate in the system.
Use
You enter the exchange rate type to store different exchange rates.
Example
You can use the exchange rate type to define a buying rate, selling rate, or ave
rage rate for translating foreign currency amounts. You can use the average rate

for the currency translation, and the bank buying and selling rates for valuati
on of foreign currency amounts.

Exchange rate type to be used for Export excise duty converts

When you are creating an Excise invoice for export sales then the exchange rate
for duty calculation will be picked up using this Exchange rate type.

Maintain Plant Settings

Use
In this IMG activity, you maintain excise information relating to your plants.
Plant Settings
In this activity, you maintain excise information relating to your plants.
Activities
For each plant:
? Specify whether it is a manufacturing site or a depot.
? Assign it an excise registration ID.
You can assign the same ID to more than one plant, if required.

Depot
Indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different procedures
for goods receipt and invoice generation.

Number of goods receipt per excise invoice.

Multiple GR for one excise invoice, Single credit

Multiple GR for one excise invoice, Multiple credit

Maintain Excise Groups

Use
In this IMG activity, you define your excise groups. For each excise group, you
can also control how various excise invoice transactions will work.
Excise Groups
In this activity, you define excise groups. An excise group allows you to mainta
in a separate set of excise registers and excise accounts. The RG 23A, RG 23C an
d PLA serial numbers are created for an excise group.

Recommendation
Under normal circumstances, excise authorities require every business to maintai
n only one set of excise registers and one set of accounts. But through exemptio
n from the authorities, multiple books can be maintained.

If your company has only one set of excise registers, then you need to maintain
only one excise group.

Activities
1. Create one excise group for each set of registers that you need to keep.
1. Assign the excise groups to plants.
2. Maintain whether this Excise group is for a depot or not.
3. If you receive only one consignment for an Excise challan then you can leave
GR's per EI as blank. If you receive multiple GR's for a given Excise challan an
d would like to avail multiple credit mark the GRs per EI as 'Multiple GR's for
one excise invoice, multiple credit'. Alternatively if you want to availa the cr
edit only after all the goods receipts have been made mark it as ' Multiple GR f
or one excise invoice, single credit'.
4. If you want to automatically create Excise invoice during Sales cycle at the
time of billing the tick the indicator 'Create EI'
5. During depot sales if you do not want to do RG23D selection and posting separ

ately and would like to complete RG23D selection in one step mark the indicator
'RG23D Auto post'. This will post the selected records into RG23D automatically.
You cannot cancel the selection later.
6. If the indicator 'Default GR qty' is marked system will default the Excise ch
allan quantity on to the Goods receipt if the Excise invoice number is given in
the pop-up.
7. If the indicator 'Folio no create' is marked system will generate Folio numbe
rs for RG23D during receipt of excise invoice into depot.
8. 'Automatic posting' when ticked will post the Excise invoice other movements
automatically along with creation in single step.
9. 'Create Part1 for Block Stock' when marked will create a Part1 during the rec
eipt of material into Blocked stock .
10. 'Create Part1 for STO' when marked will create a Part1 during the receipt of
material through inter plant transfers.
11. 'Create Part1 for consumption stock' when marked will create a Part1 during
the receipt of material into consumption stock.
Excise Group
Governs which set of excise registers a business transaction will be included in
.
Following is the relation between excise group, plant and registration.

Dependencies
In define excise groups in Customizing.
Then, in transactions involving excise duty, for example, when you post a vendor
's excise invoice, you specify which excise group you are using. This informatio
n tells the system which G/L accounts to post the excise to.
At the end of the period, when you come to prepare your excise registers, you cr
eate different sets for each excise group.

Indicates that the plant in question is a depot.

Dependencies
Depots are required to prepare register RG 23D, and follow different procedures
for goods receipt and invoice generation.

GR Per Excise Invoice

Multiple GR for one excise invoice , Multiple credit

Multiple GR for one excise invoice , Single Credit

Create Excise Invoice Automatically

Instructs the system to automatically create a Sales and Distribution (SD) excis
e invoice immediately you create a commercial invoice or a pro forma invoice.
The excise invoice is created in the background.
Dependencies
If you want to make use of this function, you must also define the default plant
, excise group, and series groups in Customizing for Sales and Distribution (SD)
, by choosing Excise Group - Series Group Determination.

RG23D Sales Creation and posting option

RG23D Automatic Option if selected will create Depot excise invoice by posting t
he selection of excise invoices in single step.
If this is not selected then you need to separately do RG23D selection followed
by PGI and then RG23D verification and posting.
If you need automatic posting of RG23D selection then the Post Goods Issue shoul
d have been completed before running RG23D selection.

Default excise qty in GR

If this indicator is ticked then while doing Goods Receipt using 'MB01' system w
ill default the excise invoice quantity on to the Goods receipt document.

Folio number for depo

Posting
If this indicator is marked then while creating Excise invoice for other movemen
ts system automatically does the Verify and Post. You need not separately Post t
he excise invoice

Also we can set indicator for creation of part 1 for:

Blocked stock
Stock transport order
Consignment stock

Maintain Series Groups

Use
In this IMG activity, you define the different excise series groups within your
company. Series groups allow you to maintain multiple number ranges for the outg
oing excise documents.
Based on excise regulations and exemptions from the authorities you can maintain
multiple number series for outgoing documents. But each of these series has to
be declared to the excise authorities.
Activities
? Define excise series groups based on type of outgoing document
? Assign series group to excise registration ID
? If no financial postings are required for an Excise invoice in this seris grou
p then you tick the 'No utilization' indicator.
? If the CENVAT has to be paid immediately and you need not wait for the Fort ni
ghtly payment then mark the 'Immediate Utilization' indicator.
Example
You could define two series groups, group 001 for excise invoices, and group 002
for 57 F4 documents.

No account postings for CENVAT in sales cycle

No utilization Flag
If you do not need any CENVAT utilization for an excise invoice but would like t
o just generate an excise invoice then you need to mark this indicator.
IF the flag is checked then system will create an Excise invoice in the given Se
ries group but there will not be any account postings or Part2 postings.
Immediate Utilization of CENVAT
Specifies that when you create an excise invoice, the system immediately pays th
e amount from CENVAT and creates the Part II entry. Such invoices will not be li
sted for fortnightly utilization.
If you have both fortnightly and immediate utilization for the same excise group
, the account determination within CIN IMG should point to the ED interim accoun
t.
Account determination for immediate payment will be done exactly the same as bei
ng done for fortnightly utilization program.

Maintain Excise Duty Indicators

Use
In this IMG activity, you maintain the excise duty indicators.

IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Det
ermination of Excise Duty >
Select Tax Calculation Procedure
Use
In this IMG activity, you specify which tax procedure you want to use for determ
ining excise duties and sales taxes on input materials in India.
? If you use condition-based excise determination, use a copy of the tax procedu
re TAXINN.
? If you use formula-based excise determination, use a copy of the tax procedure
TAXINJ.
This tax procedure also supports condition-based excise determination, so that y
ou can work with both concurrently.

We strongly recommend that new customers use condition-based excise determinatio

n. Note that once you have started using a tax procedure, you cannot switch to a
nother one, otherwise you will not be able to display old documents.

Maintain Excise Defaults

Use
In this IMG activity, you define which tax procedure and pricing condition types
are used in calculating excise taxes using formula-based excise determination.
Activities
If you use condition-based excise determination, fill out the CVD cond. field an
d leave all the others blank.
If you use formula-based excise determination, fill out all of the fields as fol
lows:
? Enter the tax procedure and the pricing conditions that are relevant for excis
e tax processing.
? Specify the purchasing and sales conditions types used for basic excise duty,
additional excise duty, special excise duty, and cess.
? Specify the conditions in the sales order that are used for excise rates.
? Specify the countervailing duty condition type used for import purchase orders
.
See also

SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materia
ls Management (MM) -> Condition-Based Excise Determination and -> Formula-Based
Excise Determination.
IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Det
ermination of Excise Duty >
Condition-Based Excise Determination
Use
When you enter a purchasing document, for example, a purchase order, the R/3 Sys
tem automatically calculates the applicable excise duties using the condition te
chnique.
Features
The standard system comes with two tax calculation procedures. TAXINN is only su
pports condition-based excise determination, whereas TAXINJ supports condition-b
ased excise determination and formula-based excise determination. Both tax proce

dures contain condition types that cover all of the excise duties and sales taxe
s applicable.
Since the exact rates of excise duty can vary on a large number of factors, such
as which vendor you purchase a material from, or which chapter ID the vendor st
ocks the material under, you create condition records for every sort of excise d
uty.
When you come to enter a purchasing document, the system applies the excise duty
at the rates you have entered in the condition records.
Activities
Customizing
Make the settings in Customizing Basic? India?for Logistics - General, by choosi
ng Taxes on Goods Movements Account? Excise Duties Using Condition Technique and
...?Settings Determination.
These activities include one activity where you define a tax code for conditionbased excise determination.
Master Data
Create condition records for all excise duties that apply, and enter the tax cod
e for condition-based excise determination in each.
Day-to-Day Activities
When you enter a purchase order or other purchasing document, enter the tax code
for condition-based excise determination in each line item. The system then cal
culates the excise duties using the condition records you have created.
When the ordered materials arrive, you post the goods receipt and the excise inv
oice. The system posts the excise duty to the appropriate accounts for deductibl
e input taxes when you enter the excise invoice.
Creating Condition Records for Excise Duty
1. In the command field, enter FV11 and choose .
2. Enter the condition type that you want to create a condition record for and c
hoose .
The Key Combination dialog box appears.
3. Select the combination of objects that you want to create the condition recor
d for.
On the dialog box, Control Code means "chapter ID."
So, for example, to create a condition record for a tax that applies to a combin
ation of country, plant, and chapter ID, select Country/Plant/Control Code.
4. Choose .
5. Enter data as required.
In the Tax Code field, enter the dummy tax code that you have defined.

6. Save the condition record.

Formula-Based Excise Determination

Use
When you execute a business transaction involving materials that are subject to
excise duty, the system automatically calculates the duty for you.
Prerequisites
In order for the system to be able to determine which rate of excise duty to app
ly, you must have maintained all the data on the Excise Rate Maintenance screen,
which you can Master Data?access from the SAP Easy Access screen by choosing In
direct Taxes Excise Rate Maintenance.?
You maintain the following types of data:
? Plant master data
You assign each of your plants an excise duty indicator. You can use the same in
dicator for all the plants with the same excise status from a legal point of vie
w, such as all those that are in an exempt zone.
See also the information about manufacturers that are only entitled to deduct a
certain portion of the duty (see Partial CENVAT Credit).
? Vendor master data
For each of your vendors with the same excise status from a legal perspective, y
ou define an excise duty indicator. You must also specify the vendor type - for
example, whether the vendor is a manufacturer, a depot, or a first-stage dealer.
You must also stipulate if the vendor qualifies as a small-scale industry.
For each permutation of plant indicator and vendor indicator, you then create a
final excise duty indicator.
? Customer master data
Similarly, you assign the same excise duty indicator to each of your customers t
hat share the same legal excise status.
Again, for each permutation of plant indicator and customer indicator, you then
create a final excise duty indicator.
? Material master data
Each material is assigned a chapter ID.
? Excise tax rate
For every chapter ID and final excise duty indicator, you maintain the rate of e
xcise duty.
If your business only qualifies for partial CENVAT credit, you must customize yo
ur system accordingly.

Activities
Let us consider an example to illustrate how the system determines which rate of
excise duty to apply to a material. Assume you are posting a sale of ball beari
ngs to a customer. The system automatically determines the rate of excise duty a
s follows:
1. Looks up the customer master data to see what status you have assigned the cu
stomer.
Let's assume you've assigned the customer status 3.
2. Looks up the plant master data to see what status you have assigned the plant
.
Similarly, your plant has status 2.
3. The system looks up the table under Excise Indicator for Plant and Customer t
o see what the final excise duty indictor is for customer status 3 and plant sta
tus 2: It is 7.
4. The system determines the chapter ID of the ball bearing for the plant.
Let's assume the chapter ID at plant for the ball bearings is 1000.01.
5. Finally, the system looks up the table under Excise Tax Rate to see what rate
of duty applies to chapter ID 1000.01 under status 7.
Define Tax Code for Purchasing Documents
Use : In this IMG activity, you define a tax code for the purposes of calculatin
g excise duty when you enter purchasing documents.
Only carry out this activity if you use condition-based excise determination.
Activities: Create a new tax code, and set the tax code type to V (input tax). D
o not make any other settings for it.

Assign Tax Code to Company Codes

Use
In this IMG activity, assign the tax code for purchasing documents to the compan
y codes where it will be used.
Only carry out this activity if you use condition-based excise determination.

Classify Condition Types

Use

In this IMG activity, you specify which condition types you use for which sort o
f tax. Note that this only applies to condition types that you use with the new
excise determination method.
The system uses this information when you create a document from another one. Fo
r example, when you enter an incoming excise invoice from a purchase order, or w
hen you create an outgoing excise invoice from a sales order, the system determi
nes the various excise duties in the excise invoice using the information that y
ou have entered here.
In addition, when you create a purchasing document, the system only uses the con
dition types that you enter here.
? For taxes on purchases, use the condition types contained in the tax procedure
.
? For taxes on sales, use the condition types contained in the pricing procedure
s.
Standard settings
The standard system comes with sample settings for the tax calculation procedure
s and pricing procedures.
Use these settings as a basis for your own.

IMG > Logistics - General > Tax On Goods Movement > India > Account Determinatio
n
Define G/L Accounts for Taxes
Use
In this IMG activity, you specify which G/L accounts you will use to record whic
h taxes.
Requirements
You have set up G/L accounts for each of the processing keys listed below.
Activities
Assign an account to each of the following posting keys. The accounts for VS1, V
S2, and VS3 are used as clearing accounts during excise invoice verification.
? VS1 (basic excise duty)
? VS2 (additional excise duty)
? VS3 (special excise duty)
? VS5 (sales tax setoff)
? MWS (central sales tax)
? MW3 (local sales tax)

? ESA (service tax)

? ESE (service tax expense)

Specify Excise Accounts per Excise Transaction

Use
In this IMG activity, you specify which excise accounts (for excise duty and CEN
VAT) are to be posted to for the various transaction types. Enter all the accoun
ts that are affected by each transaction type.
If you use subtransaction types, enter the accounts for each subtransaction type
as well.
Activities
Transaction type UTLZ is used for determining accounts only while posting excise
JVs and also if the payment of excise duty has to be done fortnightly.
The fortnightly CENVAT payment utility picks up the credit side accounts from th
e transaction types of GRPO, EWPO, and TR6C for determining the CENVAT and PLA a
ccounts. There is no separate transaction type for fortnightly payment.
Example
Excise TT DC ind Account name
GRPO CR CENVAT clearing account
GRPO CR RG 23 BED account
GRPO DR CENVAT on hld account

Specify G/L Accounts per Excise Transaction

Use
In this IMG activity, you assign the excise and CENVAT accounts to G/L accounts.
When you come to execute the various transactions, the system determines which G
/L accounts to post to by looking at the:
? Excise group
? Company code
? Chart of accounts

Furthermore, if you want separate account determination settings within an excis

e group, you can also use sub transaction types.
Requirements
You have already:
? Defined the G/L accounts
? Defined the excise groups
? Maintained the transaction accounts
Activities
For each excise group, assign the excise and CENVAT accounts to G/L accounts. Fo
r most businesses, one set of accounts will suffice for alltransactions.
Note
You need not remit the CENVAT to the excise department immediately, so maintain
the credit account for transaction type DLFC as an excise duty interim account.
This will be set off when you remit the duty.
Config setting needed to be done in order to get the Excise Details Screen in Ma
terial Master.

Even though this functionality is available in enterprise version, a small confi

g step has to be made in Screen Sequences for Material Master.

Following document helps you to do this configuration.

? Material Master ? Logistics General ?1. Go to IMG Define Structure of Data Scr
een for each?Configuring the Material master Screen Sequence.
2. Select your screen sequence. Usually it would be 21. Select the same and clic
k on Data Screen in the left frame.
3. Once the data screens are exhibited, select data screen no. 15, ie. SSq. 21an
d Scrn 15, which is "Foreign Trade: Import Data". Select the same and click on S
ubscreens in the left frame.
4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select the same.
Click on tab view subscreen and ensure that the subscreen is blank.
5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 - 0001 and instead a
dd SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.

6. Save the setting.

7. Create a Material Master and check whether in Screen Foreign Trade - Import,
Excise related subscreen appears.
Back to ERP Operation Home.
Transaction Codes for India
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

Regarding Pricing Proceduers and Conditon types, There will be different Pricng
Procedure and Condition Types for FI and SD.