WINLEN India Localisation

 SAP AG 2005
Copyright

Copyright 2001 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.

 SAP AG 2005
Target Audience

This course is intended for the following audiences:

 Members carrying out Central Excise, Sales Tax and TDS tasks

 Consultants involved in Project Management for MM, SD and FI

modules

Duration: 5 days
 MM – CIN : 2 days
 SD – CIN : 2 days
 FI – CIN : 1 day

 SAP AG 2005
Course Prerequisites
Required Knowledge:
 Any one of the following:
 SD
 MM
 FI..
Recommended Knowledge: Functional Knowlege
 Legal
 Excise Duty and Sales Tax laws
 Export/Import related laws
 Income Tax
 Common Business Practices related to India specific legal
requirements in Logistics and Finance

 SAP AG 2005
Course Overview

Course Overview
Contents:

 Course Goals
 Course Objectives
 Course Content
 Main Business Scenario

 SAP AG 2005
Course Goals

This course will prepare you to:

 Understand how Indian statutory requirements in the
area of Indirect Taxation and Income Tax are met in
SAP
 Understand VAT Compliant Tax Configuration
 Understand Service Tax configuration for Services
and TDS thereon
The course includes areas related to Financials,
Materials Management and Sales and Distribution

 SAP AG 2005
Course Objectives

After completing this course, you will be able to:

 Configure the India Localisation requirements for
Logistics and FI
 Perform master data updation and transactions for India
specific requirement
 Generate legal reports and analyse impact of legal
requirements

 SAP AG 2005
Course Content

Preface

Unit 1 Course Overview Unit 9 Sales Processes

Unit 2 India Localisation Brief
Unit 3 Excise Set-up
Unit 4 Tax Procedure for India
Unit 6 Procurement Process
Unit 7 Procurement with VAT
Unit 10 Sales with VAT
Unit 11 Depot Operations
Unit 12 Exports
Unit 13 Statutory Registers and
Form Tracking

Unit 8 Subcontracting Unit 14 EWT

Appendices
 SAP AG 2005
Main Business Scenario

 SCIL manufactures Cycles at its plants in Mumbai and

Chennai. The products are Professional Mountain Bikes
(PMB) and Children Bikes (CB)
 SCIL’s plants at Mumbai and Chennai procure raw
materials from vendors in Mumbai, Chennai, Ludhiana
and New Jersey(USA)
 The Mumbai plant receives cycle frames manufactured at
the Chennai Plant
 Cycle Frames undergo job work at a Subcontractor in
Coimbatore and are supplied back to Chennai Plant.
 The finished products are directly sent to the customers
from the Mumbai Plant. They can also be sent to dealers
from the depot at Panvel Warehouse and/or Pondicherry
Warehouse

 SAP AG 2005
India Localisation Brief

Contents:
 Logistics Overview
 Legal View – Procurement of Raw Materials
 Subcontracting
 Stock Transfers
 Imports Purchase
 Goods Imports
 Sale from Factory
 Sale from Depot
 Export Sale
 TDS Overview
 SCIL - Organisational Elements
 SAP AG 2005
India Localisation Brief : Unit Objectives

After completing this unit, you will be able to:

 Describe the background and product line of Star Cycles
India Ltd(SCIL)
 Define India Localization organizational elements
 Understand Indian Legal Requirements

 SAP AG 2005
India Localisation Brief : Business Scenario

 SCIL manufactures Cycles at its plants in Mumbai and

Chennai. The products are Professional Mountain Bikes
(PMB) and Children Bikes (CB)
 SCIL’s plants at Mumbai and Chennai procure raw
materials from vendors in Mumbai, Chennai, Ludhiana
and New Jersey(USA)
 The Mumbai plant receives cycle frames manufactured at
the Chennai Plant
 Cycle Frames undergo job work at a Subcontractor in
Coimbatore and are supplied back to Chennai Plant.
 The finished products are directly sent to the customers
from the Mumbai Plant. They can also be sent to dealers
from the depot at Panvel Warehouse and/or Pondicherry
Warehouse

 SAP AG 2005
India Localisation Brief : Logistics Overview

Domestic Vendor Import Vendor Domestic Vendor

Subcontractor
Mumbai Plant Chennai Plant

6854654654

Overseas
Customer Panvel Depot Pondicherry Depot

Domestic Customer

 SAP AG 2005
Procurement of Raw Materials (Domestic)

Excise Invoice
Domestic Vendor
Price: 1000
Qty : 10 PC
Duty 16%
- 160

Excise Stock/
Part I Register

Deposit Rs. 160 Receipt

as Duty to the Qty : 10 PC
Govt.
GR at Factory Gate

CENVAT / Part II
Register

Excise Invoice ED Credit

: Rs 160
Capture and Post

 SAP AG 2005
Imports Purchase

Commercial Invoice
Import Vendor
Price: 1000
Qty : 10 PC
C Duty 16%
- 160

Excise Stock/
Part I Register

Pay CVD of Rs. Receipt

160 to the Qty : 10 PC
Customs House
GR at Factory Gate
Capture & Post CENVAT / Part II
Register
CVD Credit
: Rs 160

 SAP AG 2005 Commercial Invoice

Subcontracting

Input

Challan
Sub contractor
FACTORY

Annexure IV
Annexure V

Output

 SAP AG 2005
Stock Transports

Supplying Plant
Excise Invoice

Price: 1000
Qty : 10 PC
Duty 16%
- 160

Excise Stock/
Part I Register

Receipt
Qty : 10 PC
Deposit Rs. 160
GR at Recv. Plant
as Duty to the
Govt.

CENVAT / Part II
Register
ED Credit
: Rs 160
Excise Invoice
Capture and Post

 SAP AG 2005
Sale from Factory

Supplying Plant

Excise Invoice
Price: 1000
Dispatch
Qty : 10 PC
Duty 16%
+ 160

Debit:
Rs. 160

Excise Duty
Payable A/C

Fortnightly utilization

CENVAT/Part II Register
PLA Register
 SAP AG 2005
Sale from Depot

Depot

Invoice
Price: 1000
Dispatch
Qty : 10 PC
Duty 16%
+ 160

Debit: Rs. 160

Reduce qty by 10

RG23D Register

 SAP AG 2005
Export Sale

Supplying Plant

Under Bond
Update Excise
Price: 1000 database
Qty : 10 PC
Duty 16%
+ 160
No Bond
Invoice

Debit: Dispatch
Rs. 160

Excise Duty
Payable A/C

Fortnightly utilization

PLA Register
CENVAT/Part II Register

 SAP AG 2005
TDS Overview

Vendor Vendor
Income tax office

File Returns

Deduct Tax
Issue
from Vendor
Certificates

Pay Tax to
Government
Bank
 SAP AG 2005
SCIL- Organizational Elements
Company Registration ID Plants/Depot Excise Group Series Group

E1 S1
S2

Mumbai Plant
R1
E3 S4

Panvel Depot
SCIL

E2 S3
S91

R2 Chennai Plant

E4 S5

R3 Pondicherry Depot

 SAP AG 2005
India Localisation Brief : Unit Summary

You should now be able to:

 Describe the background and product line of Star Cycles
India Ltd(SCIL)
 Define India Localization organizational elements
 Understand Indian Legal Requirements

 SAP AG 2005
 Excise Setup
Contents:

Preparatory Activities

Customizing Activities

Setup of the Organizational Elements

Maintenance of Excise Master Data

Plant Master
Customer Master
Vendor Master
Material Master

Excise Rate Determination

 SAP AG 2005
Excise Setup : Unit Objectives

After completing this unit, you will be able to:

 Understand activities involved in setting India
Localization for Excise
 Setup Organizational Elements of India Localization
 Prepare Excise Master Data for India localization in
standard master transactions or through Excise Rate
Maintenance transactions (J1ID)

 SAP AG 2005
 India Localization (Country India Version-CIN) is no longer an add-
on component to SAP R/3
 From release SAP R/3 Enterprise, India Localization is part of
standard R/3 itself.
 India Localization complements the following functionality for
India specific statutory requirements:
 Excise and Customs Duty
 Sales Tax and Value Added Tax (VAT)
 Service Tax
 Withholding Tax/ Tax Deducted at Source (TDS)
 Maintenance and Printing of Statutory Registers

 SAP AG 2005
 Preparatory Activities

Menu Path: SPRO  Enterprise Structure

Localize Sample Organizational Units

 Menu Path: SPRO Financial Accounting Financial Accounting Global

Settings  Tax on sales & Purchase  Basic Settings  India

Activate Country Version India for Specific Fiscal Years

Activate Business Transaction Events

 SAP AG 2005
Setup of Organizational Elements

 Menu Path: SPRO  Logistics General  Tax on Goods

Movement  India

 Basic Settings

 Master Data

 Account Determinations

 Business Transactions

 Tools

 SAP AG 2005
Setup of Organizational Elements
 Menu Path: SPRO  Logistics General  Tax on Goods Movement
 India
 Basic Settings
 Maintain Excise Registrations ID’s
 Maintain Company Code Settings
 Maintain Plant Settings
 Maintain Excise Groups
 Maintain Series Groups
 Maintain Excise Duty Indicators
 Determination of Excise Duty
 Select Tax Procedure
 Formula Based Excise Rate & Sales Tax rate determination (TAXINJ)

OR

 Condition Based Excise Rate & Sales Tax rate determination (TAXINN)
 SAP AG 2005
Setup of Organizational Elements
Menu Path: SPRO  Logistics General  Tax on Goods Movement 
India  Basic Settings Excise Registration IDs

Relevance of AED, SED or

CESS at Excise ID level

Permits deductible / Max no. of line

non-deductible ED at items in

GR
SAP AG 2005
outgoing EI
Setup of Organizational Elements
Menu Path: SPRO  Logistics General  Tax on Goods Movement 
India  Basic Settings  Company Code Settings
Separate Doc Types for
Cenvat credit Utilizes from PLA
Utilization in JV

User can
edit Dr A/c
during JV
Trans
First month for
Excise Year

Excise Inv.
Selection

 SAP AG 2005
Setup of Organizational Elements
Menu Path: SPRO  Logistics General  Tax on Goods Movement 
India  Basic Settings Plant Settings
Plant
defined as
Depot or
not

Multiple Plants
TO
One Excise Registration ID GRs per EI can be set as:
•Mult. GR, Mult. Credit
•Mult. GR, Single Credit
 SAP AG 2005 •Single GR
Menu Path: SPRO  Logistics General  Tax on Goods Movement  India
 Basic Settings Excise Group
Org. Unit
in India
Localistn Excise Regn ID linked to
Excise Grp & Plant

Depot
defn at
Excise
Grp +
Plant

 SAP AG 2005
 SetupScenario
Special of Organizational Elements

Company
Registration 1
Registration 2

Manufacturing
Depot
Registration Plant Plant
Registration

Excise Group 2 Excise Group1

 SAP AG 2005
Setup of Organizational Elements

Menu Path: SPRO  Logistics General  Tax on Goods Movement 

India  Basic Settings Series Group

 Series Group is an Entity used only in India Localization transactions.

CENVAT Utilization can be set at Series Group level as:

No utilization
Immediate utilization

Determines number range for outgoing excise invoice

Multiple Series Groups can be defined for a Excise registration

 SAP AG 2005
Setup of Organizational Elements

 Menu Path: SPRO  Logistics General  Tax on Goods

Movement  India

 Master Data
 Maintain Chapter ID’s
 Assign Users to Material Master Screen Sequence for Excise Duty
 Account Determination
 Define Excise Accounts per Excise Transactions
 Define GL Accounts for Excise Transactions

 SAP AG 2005
Setup of Organizational Elements

 Menu Path: SPRO  Logistics General  Tax on Goods

Movement  India

 Business Transactions
 Incoming Excise Invoices
 Outgoing Excise Invoices
 Subcontracting
 Exports Under Excise Regulations
 Utilizations
 Excise Registers

 SAP AG 2005
Setup of Organizational Elements

 Menu Path: SPRO  Logistics General  Tax on Goods

Movement  India

 Tools
 Long Texts
 Number Ranges
 Message Control

 SAP AG 2005
Setup of Organizational Elements
Menu Path: SPRO  Logistics General  Tax on Goods
Movement  India  Tools Number Range Maintenance

Maintain Number series group as 01 for all objects

 SAP AG 2005
Maintenance of Excise Master Data: Plant Settings

Plant
Excise
Indicator

 SAP AG 2005
Maintenance of Excise Master Data: Customer Master

Customer
Customer Excise
Customer Details
Pricing Grp Excise
Indicator

 SAP AG 2005
Maintenance of Excise Master Data: Customer Master

Excise Indicator Determination for Customer

Customer Excise Plant Excise

Indicator Indicator

Final Excise
Indicator

 SAP AG 2005
Maintenance of Excise Master Data: Plant Settings

Plant
Excise
Indicator

 SAP AG 2005
Maintenance of Excise Master Data: Vendor Master

Vendor
Excise
Details

Vendor Type

Excise Indicator
SSI Status

 SAP AG 2005
Maintenance of Excise Master Data: Vendor Master

Vendor Excise Plant Excise

Indicator Indicator

Final Excise
Indicator

 SAP AG 2005
Excise Master Data : Maintain Material Master

Chapter ID

Material – Chapter ID
Combination &
Material Type

Assessable Value for the material

CENVAT Determination for the material

 SAP AG 2005
Excise Master Data : Maintain Material Master

 SAP AG 2005
Excise Master Data – Material Excise Rates

EXCISE INDICATOR CHAPTER ID

EXCISE DUTY (BED,AED,SED,CESS),

VALIDITY PERIOD
CHAPTER ID

QTY BASED RATES

FOR AED & SED
PLANT

CHAPTER ID
PLANT
EXCEPTIONAL MATERIAL
RATES VENDOR

 SAP AG 2005
Excise Master Data – Excise Rate Determination
Rate Determination begins here

YES Is the
Vendor an SSI?

Get the Get the

Chapter ID Vendor
Get the Of the material Excise Indicator
SSI Duty rates NO

Get the
Plant
Excise Indicator
Has
Exceptional
YES Rate been
maintained?
Get the
Excise Indicator

Get the
Exceptional NO
Duty rates Get the
Rates based on
Excise Indicator
The Chapter ID

 SAP AG 2005
 You should now be able to:
 Understand activities involved in setting India
Localization for Excise
 Setup Organizational Elements of India Localization
 Prepare Excise Master Data for India localization in
standard master transactions or through Excise Rate
Maintenance transactions (J1ID)

 SAP AG 2005
Tax Procedure for India
Contents:
 Tax Procedures Concept
 TAXINN Set-Up
 Service Tax Set-Up

 SAP AG 2005
Tax Procedure for India : Unit Objectives

After completing this unit, you will be able to:

 Understand the functionality of Tax Procedures relevant for
India Localisation
 Understand how to set up your system for TAXINN
procedure
 Understand Service Tax configuration for Services

 SAP AG 2005
Tax Procedure: Availability
 Following standard Tax Procedures are available for country
India:
 Formula based Tax Procedure – TAXINJ
 Condition based Tax Procedure – TAXINN
 Use of TAXINN Tax procedure provides for smooth implementation of
CRM

 Assignment of Tax Procedure to Country

 Selected tax procedure should be assigned to the country
 The procedure once selected can not been changed
 The Other Tax procedure can also be used for country India, if
required

 SAP AG 2005
Tax Code Maintenance

 Tax Codes to be maintained based on:

 Material Types – RM or Capital Goods
 Tax Rates – 4%, 8% etc
 Input / Output Tax
 Local or Interstate Sales Tax
 Deductible or Non Deductible Tax

One Tax code for combination of Tax Rates (ED & ST)

 SAP AG 2005
Tax Code Creation : An Example
Tax Code Creation : An Example

Tax % RM CG CST
RM VAT RM Non- CG VAT CG Non- (ZIP1)
able VAT able able VAT able
(ZIP2) (ZIP3) (ZIP4) (ZIP5)

0% D0 D0 D0 D0 D0
1% R1 I1 C1 L1 -
4% R2 I2 C2 L2 N2
10% R4 I4 C4 L3 -
20% R5 I5 C5 L4 -

 SAP AG 2005
Tax Code determination (Domestic) – Access Sequence

L.S.T Vs C.S.T Tax Rate

Region of Region of Customer Tax Material Tax

Country Key
Delivery Plant Customer Classification Classification

Domestic

Tax Code

 SAP AG 2005
Tax Code determination (Export) – Access Sequence

Export Tax Rate

Country of Customer Tax Material Tax

Country Key
Delivery Plant Classification Classification

Tax Code

 SAP AG 2005
TAXINN Set-Up
 Set the tax procedure as TAXINN for Country IN.
 Ensure that excise defaults are maintained for the Tax procedure.
 Check if all the tax condition types in the tax procedure are classified.
 Create TAX codes.
 Assign Tax codes to respective Company code.
 Create condition records for those conditions which are relevant.
 Create Purchase / Sales Documents

 SAP AG 2005
TAXINN - Assign tax procedure to Country

 SAP AG 2005
TAXINN - Maintain Excise Defaults

 SAP AG 2005
TAXINN - Classify Condition Types

 SAP AG 2005
 For excise
conditions, the
access sequence is
JTAX

For VAT & ST conditions

the access sequence is
JST1

 SAP AG 2005
TAXINN – Properties of Access sequences

 SAP AG 2005
TAXINN - Create Tax code

 SAP AG 2005
TAXINN - Assign Tax Code to Company Code

Company Code

Tax code

 SAP AG 2005
TAXINN - Maintain condition record

 SAP AG 2005
TAXINN - Maintain Condition Record - SD

 SAP AG 2005
TAXINN - Create PO

 SAP AG 2005
TAXINN - Create Sales Order

 SAP AG 2005
Service Tax – An Introduction
 The Budget passed by the Minister of Finance for the Fiscal 2004-05
has introduced the utilization of credit of Service Tax against CENVAT
and vice- versa.
 Education Cess, a new levy will be applicable on Service Tax and this
is levied on the value of Service Tax computed.
 Service Tax Rate
 10 %
 Education Cess : 2 % of Service Tax
 Service Tax Incidence
 Service Tax Liability is on payments received or part thereof
 Payment – monthly / quarterly depending on type of organization
 PLA not to be maintained for pure service providers
 Service Tax Credit
 Applicable only on full payment of invoice to vendor

 SAP AG 2005
Service Tax Set-Up

 Create two new Tax conditions For eg: JSRT, JEC3. One for
services tax (JSRT & another for Education cess on service
tax). JSE4 and JES4 for the SD Condition type.
 Create a new tax posting key VS7 and VS8. VS9 and VS0 is the
SD account key.
 Assign the conditions with account keys in the tax procedure.
 Create tax code
 Activate service level tax calculation in MM External services
management customising.
 Create PO
 During LIV service tax interim account is affected with the
service
 SAP AG 2005 tax amount for which credit can be taken.
Service Tax - Create Service tax condition types
Condition type for TAXINJ with Access
sequence MWST

Condition type for TAXINN with Access

sequence also as MWST

 SAP AG 2005
Service Tax - Create Account Keys

Account Key

Maintain G/L accounts for

every tax code at an account
key level.

 SAP AG 2005
Service Tax - Assign to Tax procedure

 SAP AG 2005
Service Tax - Activate tax calculation at
service level
SPRO > MM >External services Management > Taxes at individual service level

 SAP AG 2005
Service Tax - Create Services PO

 SAP AG 2005
Service Tax - Display Tax at Service
level

 SAP AG 2005
Tax Procedure for India: Unit Summary

You should now be able to:

 Understand the functionality of Tax Code procedures
relevant for India Localisation
 Understand how to set up your system for TAXINN
procedure
 Understand Service Tax configuration for Services

 SAP AG 2005
Sales Process

Contents:

 Overview of the sales process

 Sales processes
 Sales from Factory - Configuration
 Cancellation of Excise Invoice
 Excise Invoice Printing
 Monthly Utilization
 Other features

 SAP AG 2005
Sales Process : Unit Objectives

After completing this unit, you will be able to:

Understand Excise related sales processes

Understand Sales Tax related sales processes
Run the sales processes

 SAP AG 2005
Sales Process : Business Scenario

 Removal of goods

 Free Supplies

 Excise Invoice Cancellation

 Monthly Utilization

 SAP AG 2005
Removal of Goods - Overview

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 from Customer Transfer to Subcontractor Return from Customer Transfer to Subcontractor

Full Compliance across the

Distribution Process

 SAP AG 2005
 CENVAT Availment & Utilization
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

MONTHLY TRANSACTIONS (Consolidated Entry)

DEPOSIT SELECT
FUNDS REGISTER Excise duty
IN PLA
Utilization
ACCOUNT
PLA A/C Transaction
Credit Debit PLA A/c
PLA Account

 SAP AG 2005
Sales - Processes

 Sales from Factory

Single Excise Invoice and Commercial Invoice
Separate Excise Invoice and Commercial Invoice
 Free Supplies

 SAP AG 2005
Sales from Factory - Process

Batch Utilization
DELIVERY
Streamlined Excise
Tax Processing

GOODS ISSUE

COMMERCIAL INVOICE PROFORMA INVOICE

EXCISE INVOICE GENERATION EXCISE INVOICE GENERATION

AND PRINTING AND PRINTING

•Excise Invoice Creation in Background

•Automatic Determination of Excise and Series Group
•Provision for immediate utilization of CENVAT COMMERCIAL INVOICE
 SAP AG•Posting
2005 to Profitability segment
 Separate Commercial and Excise Invoice

Sales Order

Delivery

Proforma Invoice

Posting to Excise duty payable

account Excise Duty posting
Posting to CENVAT accounts for
immediate Utilization
Excise Invoice
Printing

Commercial Invoice

 SAP AG 2005
Single Commercial and Excise Invoice

Sales Order

Delivery

Invoice

Posting to Excise duty payable

account
Excise Duty posting
Posting to CENVAT accounts for
immediate Utilization

Invoice Printing

 SAP AG 2005
Free Supplies

 Can be combined with a normal order

 100% discount condition added to the item pricing

 Item category changed to free-of-charge

 Excise posting done

 SAP AG 2005
Sales from Factory - Configuration

 Document Flow
 OR LF F2
 OR JF JEX F2

 Define Allowed Delivery types to Billing types

 Define Invoice split through data transfer formula in copy

control

 SAP AG 2005
 Sales from Factory - Configuration
Copy control formula for validation

 Two possible requirements are

 When excise and commercial invoice are the same
 Copy Control Formula : OR  LF  F2

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

excise invoice for one commercial invoice
 Copy Control Formula : OR  JF  JEX  F2

 SAP AG 2005
Sales from Factory - Configuration

 Sales pricing (Formula based Condition Types)

Pricing procedure - JFACT
Tax procedure – TAXINJ
Excise based on material and customer data
Manual over-ride for excise value
Sales tax rate from the tax code
VAT , CST - LST determination based on tax classification

 SAP AG 2005
Sales from Factory - Configuration

 Sales pricing (Conditions record based Excise Condition

Types)
Pricing procedure - JINFAC

Tax procedure – TAXINN

Excise based on condition technique only

Excise based on material and customer data

Chapter Id needs to be maintained in IMG

 SAP AG 2005
Sales from Factory - Configuration

 Sales pricing (Conditions record based Excise Conditions)

Pricing procedure - JINFAC

Tax procedure – TAXINN

Manual over-ride for excise value

No excise indicator required for customer

 SAP AG 2005
Sales from Factory - Configuration

 Sales pricing (Conditions record based Excise Conditions)

Pricing procedure - JINFAC

Tax procedure – TAXINN

Sales tax rate from the tax code

CST - LST determination based on tax classification

 SAP AG 2005
Sales from Factory - Configuration

 Sales pricing

Concessional Taxes
Tax Procedure TAXINJ with Pricing Procedure JINFAC
Tax Procedure TAXINN with Pricing Procedure JFACT

 SAP AG 2005
Sales from Factory – Configuration

Menu Path: SPRO  Logistics General  Tax on Goods

Movement  India

 Master Data
 Maintain Form Types

 SAP AG 2005
Cancellation of outgoing excise invoice

Sales Order

Delivery

Invoice

Excise Invoice Creation

Invoice Cancellation

 SAP AG 2005
Excise Invoice Printing

 Outbound excise invoice printing facility provided

 Selection based on
 Excise invoice numbers
 Excise year
 Excise Invoice Date
 Billing document
 Series Group
 Plant
 Tracking of Printed Excise Invoice facilitating reprint of Excise
Invoice

 SAP AG 2005
Monthly Utilization

 Facilitates payment of duty accumulated.

 Includes
 Display of pending invoices
 Option for Posting date
 Posting to a Business area
 Selection based on a range of dates
 Optionally, Selection based on a range of invoices
 Option of Utilizing the Service tax Credit.
 Option for Payment of Service tax from Cenvat
 Facilitates Utilization strategy based on customization settings
Posting of TR6 Challan entry to PLA account
 2005
 SAP AG
 Monthly Utilization

 Option for Cenvat

Payment from Service
Tax

 Option for Service tax

Payment from Cenvat
 Service  Service Tax / ECS
tax / ECS Credit Account
Payment
account

 SAP AG 2005
Monthly Utilization

 SAP AG 2005
Other Features

 Excise Invoice in Background

 Invoice Split
 Excise Document Flow
 Utilization due list
 Batch Utilization

 SAP AG 2005
Excise Invoice In Background

 Excise invoice created automatically in background during

creation of billing document

 Feature made optional and triggered based on customization

settings

 Excise group and Series group automatically determined based on

customization

 Provision to print excise invoice immediately after automatic

creation of excise invoice


 SAP AG 2005
Invoice Split

Sales Order

Delivery Commercial Invoice

Proforma Invoice Proforma Invoice Proforma Invoice

Excise Duty posting Excise Duty posting Excise Duty posting

Excise Invoice Print Excise Invoice Print Excise Invoice Print

 SAP AG 2005
Excise Document Flow

Order Delivery Billing Excise Invoice

Sold-to-party : 2300 Ship-to-party : 2300 Bill-to-party : 2300 Sold-to-party : 2300

Item Material Qty Item Material Qty Item Material Qty Item Material Qty
10 400 5 10 400 5 10 400 5 10 400 5

Document flow of Excise Invoice

Order
. Delivery
. . Billing
. . .Excise Invoice

ã SAP AG 1999

 SAP AG 2005
Utilization Due List

 Listing of all billing documents due for utilization

provided
 Also includes ability to view,
 Account balances
 Total duty amount needed to utilize the displayed billing
documents
 Deficit, if any

 SAP AG 2005
Batch utilization
 Excise Invoices can be created in batches

 Provision of additional fields in selection screen like

 Billing date
 SD document category
 Billing document category

 SAP AG 2005
Sales Process : Unit Summary

You should now be able to:

Understand Excise related sales processes

Understand Sales Tax related sales processes
Run the sales processes

 SAP AG 2005
Sales with VAT

Contents:

 VAT Implication on Sales Process

 Business Place
 SD Configuration
 Master Data
 Sales Scenarios

 SAP AG 2005
Sales VAT : Unit Objectives

After completing this unit, you will be able to:

Understand VAT implications on the Sales Processes

Understand the Business Place and Alternate G/L
account concepts in relation to VAT.
Perform SD transactions with VAT in the system

 SAP AG 2005
VAT Implication in Sales Processes

Purchasing
Utilization & Inventory
Tax Payment Valuation

VAT Invoice
Accounting SAP R/3 Verification

Delivery Sales Order

Billing

VAT
impact

 SAP AG 2005
 Business Place in R/3

BUSINESS PLACE – A New

Organizational Unit in Logistics Defined at Company Code
Level

Tax Reporting entity

 SAP AG 2005
 Business Place Assignment

 SAP AG 2005
 Business Place Applicability

 Business Place used for VAT related Tax reporting in

 Sales and Distribution
 Materials Management

 SAP AG 2005
 Business Place

Entity Business Place will primarily be used for -

Defining Vat Registration Number
Determining Official Number Range for :
 All Billing Transactions in SD
 All Credit Memo Transactions in MM
Consolidating data for Period End Processing requirements
Determining "Alternate G/L Accounts" for Taxes

 SAP AG 2005
 Business Place – Scenario 1

PLANT 2
PLANT 1
# Single VAT Registration

# Consolidation for all Plants

before utilization
# Single period end process
reports for all plants

STATE : KARNATAKA

COMPANY ‘ ABC’

PLANT 3

Define Single Business Place for all the Plants in a state.

 SAP AG 2005
 Business Place – Scenario 2

STATE : KARNATAKA
PLANT 2
PLANT 1

VAT Registration : ‘XXX’ VAT Registration : ‘YYY’

Output is under deferral/
exemption scheme

COMPANY ‘ ABC’

Define Separate Business Place for both Plants in the state.

 SAP AG 2005
 Business Place – Scenario 3

 State specific number range requirements may be specified

Solution: Business Place is

used to determine number
range objects.

 SAP AG 2005
 Business Place – Scenario 4

 Need for maintaining separate VAT Credit and Debit accounts for different
states

Solution: Separate G/L

Accounts are maintained at
state level. Business Place is
used to determine correct G/L
account at the time of posting.

 SAP AG 2005
 Intra State – Finished goods VAT applicable
Sales pricing and Tax procedure
Pricing procedure JFACT
Condition type UTXJ
Access sequence JIND
Access Country/ Plant Region / Region/ TaxCl1Cust/ Tax Cl.Mat
Tax Code S1

Sales Order Pricing Material master

Customer master
Basic Rate Rs85X 10 pcs= Rs 850 Plant details
Excise Duty @20 = Rs 170
Tax Base Amount Rs 1020
VAT Rs. 102
10%
Total Rs.1122 VAT
Tax procedure TAXINJ JIN 6

 SAP AG 2005
SD Configuration
 Define Condition Types

 SAP AG 2005
SD Configuration
 Change SD Pricing Procedure

 SAP AG 2005
SD Configuration
 Create New Condition Table

 SAP AG 2005
SD Configuration
 Change in Access Sequence

 SAP AG 2005
SD Configuration
 Define Condition Types (TAXINN)

 SAP AG 2005
SD Configuration

 Settings for Tax Processing (TAXINN)

 SAP AG 2005
SD Configuration

 Define Account Keys

(TAXINN)

 SAP AG 2005
SD Configuration
 Change SD Pricing Procedure (TAXINN)

 SAP AG 2005
SD Configuration
 Define Business Place
 SM31 Table name: J_1BBRANCV

 SAP AG 2005
SD Configuration
 Assign Business Place to Plant
 SM31 Table name: J_1BT001WV

 SAP AG 2005
Alternate G/L Accounts: Introduction

 To determine alternate G/L accounts for Taxes

 It is used for Sales Taxes and not meant for excise posting

 Helpful in reporting

 Useful in maintenance of Tax Codes (input & output)

 SAP AG 2005
 Alternate G/L Accounts: Usage

 Alternate G/L account can be used in the following business

processes

 Determination of Separate G/L Account for VAT and Non VAT States
 Determination of Separate G/L Account for Deferral & Non-Deferral Plants by
using Business Place
 Determination of Separate G/L Account for Standard and Sub-contracting
Purchases
 Any other Business requirements

 SAP AG 2005
 Alternate G/L Accounts: Maintenance

 Alternate G/L account can be maintained based on:

Chart of accounts

Business Place

Transaction Key

Tax Code

 SAP AG 2005
 Alternate G/L Accounts: Configuration

 SAP AG 2005
Master Data

Plant Region

 SAP AG 2005
Master Data

Tax classification
Customer

 SAP AG 2005
Master Data

Tax classification Material

 SAP AG 2005
Master Data

Tax code determination

 SAP AG 2005
Master Data

VAT rate 12.5%

 SAP AG 2005
Official Document number Configuration

 Define Document Class

 Assign the Document Class to the Sales Area and Region

 Define Document Numbering

 Assign the Document numbering for the Business Place

 SAP AG 2005
Official document Number Process flow
Identify the country of No
IN Export -BOS
the customer.

Yes

Same Tax
Check the Tax Code
code in table Deemed
J_1iexcdef Export - BOS

Different
Tax Code

Exempted
Check the Tax
Tax Code Exempted
code in table
J_1iexmptcode Sales - BOS

Normal
Tax Code

Check the VAT Unregistered

Registered Yes Registration No in the Customer Un Registered
customer’s Customer Master Tax customer’s
Sales - VAT code Field Sales - BOS

 SAP AG 2005
Organization Structure

Company Code (EWT)

Chart of A/c INT

Sales Area (0001/ 01/ 01)

VAT Reg ID 2
VAT Reg ID 1
Ex gp E1, Series gp S1 Domestic, S2 Exports Ex gp E2, Series gp S3

Plant 3 Chennai IN20

Plant 1 Mumbai IN10
Shipping point 0002
Maharashtra
Shipping point 0001
 SAP AG 2005
 Master Data
Material Master
MBG01 - Professional Mountain Bike with Gears
MB01 - Professional Mountain Bike without Gears

Customer Master
INC01 – Mumbai Dealer
INC02 – Chennai Dealer
INC08 – Depot Customer for VAT
INC09 - Depot Customer for CST

G/L Accounts

VAT Payable A/c - Used for paying VAT on all sales

VAT Alternate GL A/c - Used for paying VAT on all sales

 SAP AG 2005
Sales Scenarios with VAT
Followings are the scenarios with VAT
Intra State
• Finished goods (VAT applicable- general VAT rates)
• Finished goods (VAT exempt)
• Depot sales (VAT applicable)
Inter State
• Finished goods

Exports
• Finished goods
• Deemed Exports – Finished Goods

Stock Transfer
• Inter State
• Intra State

 SAP AG 2005
 Intra State – Finished goods (VAT applicable –
general VAT rates)
Pricing procedure JFACT
Condition type UTXJ
Access sequence JIND
Access Country/ Plant Region / Region/ TaxCl1Cust/ Tax Cl.Mat
Tax Code S1

Sales Order Pricing Material master

Customer master
Basic Rate Rs85X 10 pcs= Rs 850 Plant details
Excise Duty @20 = Rs 170
Tax Base Amount Rs 1020
VAT Rs. 102
12.5%
Total Rs.1122 VAT
Tax procedure TAXINJ JIN 6

 SAP AG 2005
 Intra State – Finished goods (VAT exempt )
1 2 3

Bill of Sale

Shipping
Sales Order

Billing

Accounting documents
4

5
Excise invoice

Period end processing

Sales revenue account CENVAT suspense

Customer account ED payable
NVAT-MAT1 VAT 0%
CENVAT suspense
Intra-State Customer Cus_intra1
Accounting documents
 SAP AG 2005
 Intra State - Depot Sales (VAT applicable)
Mumbai Plant IN10
(Factory)

Mumbai Plant IN 30
(Depot)
Purchase Order

Sales Order
Delivery

VAT Register Excise Invoice Goods Issue

Updation

VAT Register Billing

Updation
Stock in Transit

Mumbai Plant IN 30
(Depot)

VAT Register Goods Receipt

Updation

 SAP AG 2005
 Inter State -Finished goods
1 2

Shipping
Sales Order
Inter State Customer (KAR) Cus_inter1
VAT- MAT1 (VAT rate 10%)

5 Billing

3
Period end processing

Bill of Sale

Dr.Customer a/c Dr.CENVAT suspense

Cr.Sales revenue a/c Cr. ED payable
Cr.CST payable 4
Cr. Cenvat Suspense

Accounting documents
Excise invoice

 SAP AG 2005
 Exports1 -Finished goods
2

Shipping
Sales Order

Billing

3
5
Bill of Sale

Period end processing

4
Foreign Customer (UK) Cust_exp1
MAT-EXP Excise invoice

 SAP AG 2005
 Deemed1 Exports -Finished goods
2

Shipping
Sales Order

Billing

3
5
Bill of Sale

Period end processing

4
Deemed Export Customer CUST_DEXP1
VAT- MAT1 (VAT rate 10%) Excise invoice

 SAP AG 2005
 Intra State – Finished goods (VAT exempt)
Sales pricing and Tax procedure
Pricing procedure JFACT
Condition type UTXJ
Access sequence JIND
Access Country/ Plant Region / Region/ TaxCl1Cust/ Tax Cl.Mat
Tax Code S2

Sales Order Pricing

Basic Rate Rs83X 10 pcs= Rs 830
Excise Duty @20 = Rs 166
Tax Base Amount Rs 996
VAT Rs. 0
0%
Total Rs.996 VAT
Tax procedure ZEXVAT ZIN 1

 SAP AG 2005
Inter-State Stock Transfer via SD

 SAP AG 2005
Intra-State Stock Transfer
Mumbai STO from
Plant 2–
Plant 1 Qty 1 EA
Rate 100

Cr Inventory A/c Plant 1 = Rs100

Dr Inventory A/c Plant 2 = Rs100 Goods Issue

Cr ED Payable A/c = Rs16

VAT Register
Dr ED Clearing A/c = Rs16 Excise Invoice Updation
(Qty &Value)

Stock in
Transit

Mumbai
Plant 2

No Accounting Entries and

No Invoice verification
VAT Register
No VAT credits
Goods Receipt Updation
(Qty &Value)

Dr RG23A/C A/c = Rs16

Cr ED Clearing A/c = Rs16 Capture & Post
Excise Invoice
MAHARASHTRA
VAT Reg ID 1

 SAP AG 2005
Sales Process : Unit Summary

You should now be able to:

Understand VAT implications on the Sales Processes

Understand the Business Place and Alternate G/L
account concepts in relation to VAT.
Perform SD transactions with VAT in the system

 SAP AG 2005
Depot Operations

Contents:

Stock Transfer from Factory

Depot Receipts
Depot Sales

 SAP AG 2005
Depot Process : Unit Objectives

After completing this unit, you will be able to:

Understand Excise related Depot processes

Configure Depot specific Master Data for India
Localisation
Run the Depot processes

 SAP AG 2005
Sales Process : Business Scenario

 Depot Receipts
 Depot receives goods from the company’s factory through
stock transfer
 Depot procures goods directly from external sources

 Depot Sales

 SAP AG 2005
Removal of Goods - Overview

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 from Customer Transfer to Subcontractor Return from Customer Transfer to Subcontractor

 SAP AG 2005
Depot Requirements

Distribution of Excisable goods at depot involves maintenance of

RG23D registers.
Incoming Excise Invoice reference is required to be mentioned on
depot Sales Invoice
At the Factory gate, Excise is paid on the declared value of the
goods to be sold at depot.
Depot should charge from the customer the same Excise duty from
that was paid at factory/source.
In case of price escalations at depot the difference needs to be paid
at the factory

 SAP AG 2005
Transfers to Depot

Stock Transfer Order

Replenishment
Delivery

Proforma Invoice

Posting to Excise
duty payable
account

Excise Invoice
Printing

 SAP AG 2005
Stock Transfer Order

Stock transfer order created

Depot is configured as the receiving plant
Replenishment delivery made through delivery due list
Proforma Excise Reference created with respect to delivery
Excise gets calculated at the factory
Excise duty posting into payable account and excise invoice is
printed

 SAP AG 2005
Stock Transfer Order - Configuration

Stock transport order customization in MM purchasing

Depot maintained as a plant and marked as depot in CIN plant
settings
Pricing Procedure determination using JSTKTR or JINSTK
Stock transfer item category made relevant for billing and
pricing
Delivery type to billing type map, NL - >JEX in CIN customizing
settings in IMG

 SAP AG 2005
Depot Receipt and Sales

Goods Receipt Sales Order

Excise Invoice
Delivery
Capture (Depot)

Excise Invoice
Selection

Invoice

 SAP AG 2005
Depot Receipts for Stock transfer
GR made against the delivery note / stock transfer
Excise invoice details directly copied from factory invoice
Loss in transit taken care of
Ship-from can be captured at Excise Invoice for depot.
Multiple P.O.s can be combined in one receipt
Folio number generation can be switched on through customization
Item details are proposed for stock returns

 SAP AG 2005
Depot Receipts for Direct Purchases
GR made against the PO
Individual excise invoice details copied from PO item or can be
entered at item level
For imports CVD can be marked
Ship-from can be captured at Excise Invoice for depot.
Multiple P.O.s can be combined in one receipt
Folio number generated based on customization

 SAP AG 2005
Supplementary invoice receipts
To cater to A-certificates issued from factory
Folio number generation is mandatory
A-certificate can be entered for an existing receipt so long as there is
still some balance quantity left in RG23D
A-certificate number,date and duty values can be entered
Recorded in RG23D as a new serial number under the folio
The A-certificate details can be changed until used during sales

 SAP AG 2005
Depot Sales

Sales order created at depot

Pricing procedure JDEPOT (with TAXINJ) and JINDEP (with
TAXINN) can be used
Delivery created for the sales order
Excise Invoice selection for goods issue made against delivery
Goods issue can be made from a set of excise invoices
Commercial invoice at depot picks total excise value from all
selected excise invoices

 SAP AG 2005
Depot Sales
Separate steps for Excise Invoice create and verification.
Option for Single step creation and verification through customization
Option to cancel excise invoice before verification.
Provision to create depot invoice before post goods issue based on
delivery document.
Option to restrict incoming excise invoice selection from the same
source of supply.
User-exits for unit conversion and Excise / Series group determination

 SAP AG 2005
Depot Sales - A certificate selection

Pick up the A-certificates relevant for the current removal

A-certificate can be selected along with the corresponding excise
invoice
Multiple A-certificates can be picked up
Splitting of the A-certificate amount across removals not allowed
Separate RG23D entries in the same folio for better tracking
Value gets added up and cumulative excise proposed during Billing

 SAP AG 2005
RG23D Register
Matl Receipt

Depot

RG23 D Register
Ex Inv
List for
Selection

Depot
Delivery
Stock Details

Selected
Exc Inv

Scaled excise
value as Exc Amt
Invoice
Commercial

 SAP AG 2005
Invoice
Conclusion

 Comprehensive solution for Depot functionality

 RG23D Maintenance and Printing functionality is available
 Provision to receive Internal as well as External Excise Invoice
at Depot.
 Close integration with MM and SD processes

 SAP AG 2005
Depot Process : Unit Summary

You will now be able to:

Understand Excise related Depot processes

Configure Depot specific Master Data for India
Localisation
Run the Depot processes

 SAP AG 2005
Exports

Contents:

 Overview of Export Processes

 Export Bonding

 ARE Document Processing

 Screen Shots

 SAP AG 2005
Exports: Unit Objectives

After completing this unit, you will be able to:

Understand the export processes
Configure the export related requirements
Update Master Data relevant for exports in SAP
Perform export transactions and execute relevant
reports

 SAP AG 2005
Export: Business Scenario

 Export Sales and Deemed Export Sales

 Exports under Bond
 Manufacturer
 Merchant Exporter
 Exports under Rebate
 Exports under Deemed Export, STP & 100% EOU
 Special Procedures

 SAP AG 2005
Overview of Export Processes

 Salient Features
 Export of Excisable Materials can be done by:
 Manufacturer
 Merchant Exporter
 Removal of goods from a manufaturer / merchant-exporter without payment of
duty to destination within India
 Exports categorized (legally) as:
 Under Bond
 B-1 Bond
 Running Bond Account (Bond Register)
 Letter of Undertaking (UT-1)
 Under Rebate
 SAP AG 2005
Overview of Export Processes
Pre-Sales Process customer inquiries

Activities Procure License

Sales Order Prepare Sales order & Proforma Invoice

Processing Receipt of Customer LC

Inventory Verify delivery dates and

Sourcing availability

Pre-Shipment Delivery order

Customs Endorsement

Shipment Process Clearing and Forwarding

Invoice

Billing Prepare Commercial

Payment Post Payment/ Bank Negotiations

 SAP AG 2005
Excise Bonding Document Flow

Order Delivery Billing Excise Invoice

Sold-to-party : 2300 Sold-to-party : 2300 Sold-to-party : 2300 Sold-to-party : 2300

Item Material Qty Item Material Qty Item Material Qty Item Material Qty
10 400 5 10 400 5 10 400 5 10 400 5

Does Bond
exist?

Create AR Doc Capture License Bond Register

Sold-to-party : 2300 Sold-to-party : 2300 Sold-to-party : 2300

Item Material Qty Item Material Qty Item Material Qty

10 400 5 10 400 5 10 400 5

 SAP AG 2005
Documents specific to Export Processing
POST-SHIPMENT NEGOTIATIONS
LICENSE APPLICATION

Form-A/GSP certificate of origin

Annexure IV Inspection Certificate
Annexure II LC Cover
Annexure III BRC
Annexure IIIA Commercial Invoice
Bill of Exchange
Forward Cover
DBK Recovery
PRE-SHIPMENT ACTIVITIES

Proforma Invoice
Export License/Country of Origin LEGAL REPORTING REQUIREMENTS
Customs Invoice
SDF form/ or GR Tracking of Bank Guarantee & other EMD
Packing List GSP
ARE1 & ARE3 Tracking for Running Bonds Export Register
Shipping Instruction License Application, Allocation,
Commercial Invoice with actual supply PGI Utilisation and Endorsement Registers
Proof of Exports
 SAP AG 2005
Exports Sales

Sales Order
currency
No
Sales Under
Sales under no-bond? Bond
Customer Country

Export Sale Yes

Bond
CENVAT / Part II Register
Register Download
ED Credit

Proforma
Excise
Reference
Optional Tax Calculation
Delivery
Excise Value

Excise Calculation
Formula
Commercial
Invoice

 SAP AG 2005
Deemed Exports Sales

 Sale is marked as Deemed

 Excise status of customer gives complete concession

 J1IIN transaction creates excise invoice

 No Amount utilization

 Use of Local excise invoice range based on series group

 SAP AG 2005
Process Flow for exports under Bond , for Manufacturer


B1 Bond

III
Excise Dept for
ARE1 manufacturer

ARE1
Manufacturer
(Exporter)
III, IV

I, V

ARE1 I to V ARE1 ARE1 II (Sealed)

Excise
Excise I, II, V Invoice
Invoice

Port (Customs)

 SAP AG 2005
Process Flow for exports under Bond , for Merchant Exporter


Manufacturer Bond

III Excise Dept for

CT 1 manufacturer
CT 1 ARE1

Excise
Invoice
ARE1
CT 1
Merchant Exporter
III, IV
CT 1

I, V

ARE1 ARE1 II (Sealed)

Excise
I, II, V Invoice

Port (Customs)

 SAP AG 2005
Bond Maintenance in SAP R/3

 Bond Type

  B1 , LUT , BG
 Bond Numbering
 Bond Balance [ Debit / Credit entries ]
 Fast Credit
 Reservations
 Processing Excise Bonds
 Create , Change , Display , Cancel & Close Excise Bonds
 Assigning Excise Bonds to ARE-1
 Proforma for Running Bond Account
 Bond Statements
 Statements regarding export of excisable goods
 Bond Summary Report

 SAP AG 2005
ARE-1 Form Processing

 Creating ARE-1
 Changing / Amend ARE-1
 ARE-1 Tracking
 ARE-1 Update
 ARE-1 Shortfall Adjustments
 ARE-1 Reversal / Cancellation
 Posting ARE-1 to Excise Dept.
 Closing ARE-1

 SAP AG 2005
Deemed Exports Licensing

 License Numbering
 for CT-1 , CT-2 , CT-3
 License Balances
 License Validity
 Processing Deemed Export Licenses Master Data
 Create , Change , Display
 . , Cancel & Close Licenses

 Deemed Export License summary

 Quantity tracking and reconciliation of goods removed under license level

 SAP AG 2005
ARE-3 Form Processing

 Creating ARE-3
 Changing / Amend ARE-3
 Assigning Deemed Export Licenses to ARE-3 Line Items
 Posting ARE-3 to Excise Dept
 ARE-3 Update
 ARE-3 Shortfall Adjustments
 ARE-3 Reversal / Cancellation
 Closing ARE-3

 SAP AG 2005
ARE Document Processing

 Creating Transaction Configuration

 ARE Document numbering
 Automatic Address Determination
 ARE Text determination
 ARE Output / Printout
 Extending Export Periods and Reware housing periods
 Interest Calculation
 ARE assignment / removal from Excise Invoices
 ARE cancellations

 SAP AG 2005
ARE Document Processing

Header Data Item Data

Document Details Item Material Details

Total Duties Quantity
Certification Dates Duty Rates
Bond/UT -1 Detail Duty Values
Excise Invoice Summary License
Addresses Package Details
Additional Data Reference Documents
Part II Additional Data

 SAP AG 2005
ARE Document Processing

 ARE Transaction Configuration

 Each type of ARE Document provides for:
 One Central Processing Transaction
 Allows Users to carry out all functions on ARE document
 Suitable to a System Administrator
 Three Individual Processing Transactions
 Restricts Users to specific processing modes only E.g
 Create and Display ARE documents OR
 Update and Display ARE documents etc

Assignment to Excise Clerks/Supervisors

 Customizing Settings:
 IMG Path: Logistics  General Tax on Goods Movements  India 
Business Transactions  Exports Under Excise Regulations  Transaction
Configuration

 SAP AG 2005
ARE Document Processing
 ARE Document numbering
 Each ARE Document has two numbers
 an internal number
 Used by the system to identify the ARE document,
 an official number
 Corresponds to the serial numbers assigned to company by the excise
department for the ARE document forms
 Number Range Objects to be maintained
 Internal number range object
 J_1IINTNUM
 Official number range object
 ARE-1s  J_1IARE1
 ARE-3s J_1IARE3
Separate number range for each series group
 Customizing
 IMG Path : Logistics  General Tax on Goods Movements  India 
 SAP AG 2005 Tools  Number Ranges.
ARE Document Processing

 ARE Automatic Address Determination



Address of Custom Department

(Master Data Config- Postal Addr)

Address in
ARE

Address of Excise Department

(Master Data Config – Series Grp)
 SAP AG 2005
ARE Document Processing

 ARE Automatic Text determination



# Mode of
Long Text Function
Transport
# Export Seal
Customizing
No

ARE -1 / ARE-3 Forms

 SAP AG 2005
ARE Document Processing

 ARE Output determination /

 SAPScript forms for
Printout
 ARE -1
 ARE-3
 Common print program and output type
 J1IB
 Other Output Types : Customizing Settings:
 Definition:
 IMG Path: LogisticsGeneralTax on Good MovementsIndia Business
Transactions Excise Bonding Exports under Excise RegulationsPrintouts of ARE
Documents.
 Assignment:
 IMG Path: LogisticsGeneralTax on Good MovementsIndia Business
Transactions Excise Bonding Exports under Excise RegulationsMake Settings for
ARE-1 Procedure &
 IMG Path: LogisticsGeneralTax on Good MovementsIndia Business
Transactions Excise Bonding Deemed ExportsMake Settings for ARE-3
Procedure

 SAP AG 2005
ARE Document Processing

 Extending Export Periods and Rewarehousing periods for ARE

  Exemption on basic excise duty dependant on completion of:
 Exports under bond within export period
 Exports under claim for rebate within export period
 Deemed exports within allotted re-warehousing period

 On application of extension,
 If extension granted
 Enter extension date in ARE document
 Else
 Reverse ARE-1 or ARE-3 to facilitate repayment of excise duty posted to
CENVAT
 Ageing Analysis for ARE document used to track AREs nearing end of
export/rewarehousing period

 SAP AG 2005
ARE Document Processing

 ARE Interest
Reversal of Calculation Shortfalls in ARE-1s/
ARE -1/ARE 3document ARE-3s

Interest due computed

by system

OVERWRITE OF EXCISE DUTY

AND INTEREST COMPUTED BY
SYSTEM PERMITTED

 SAP AG 2005
ARE Document Processing

 ADD/REMOVE/CANCEL EXCISE INVOICE TO AREs (STEPS..)

 ADD
 On the Excise Invoice Summary tab enter in Additional Excise Invoice field,
 Excise Invoice Number
 Year
 Choose +
 REMOVE
 On the Excise Invoice Summary tab enter in Additional Excise Invoice field,
 Excise Invoice Number
 Year
 Choose –
 CANCEL
 Indirect Taxes  Sales/Outbound Movements  Exports Under Excise Regulations  Exports or
Deemed Exports  Central Processing  Cancel ARE1 or Cancel ARE-3.
 Select Cancel
 Select ARE-1 or ARE-3 Internal Document
 Provide internal ARE number and choose SAVE

 SAP AG 2005
ARE Document Processing

 ARE Aging Analysis Report

 List of all ARE documents by their status

 ARE Document Status

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

 SAP AG 2005
Exports : Unit Summary

Now you will be able to:

 Understand the export processes
 Configure the export related requirements
 Update Master Data relevant for exports in SAP
 Perform export transactions and execute relevant
reports

 SAP AG 2005
Statutory Reporting
Contents:

Statutory Excise Reporting

Excise Registers
Bond Registers
License Registers
Running Bond Registers

Statutory Sales Tax Reporting

Sales Tax Registers
VAT Register

 SAP AG 2005
Statutory Reporting : Unit Objectives

After completing this unit, you will be able to:

 Generate Excise related and Sales tax related reports

 Configure the relevant settings for the script layouts

 SAP AG 2005
 Statutory Reporting : Business Scenarios

 Printing of Excise Registers (RG23 A&C Part I, II, RG1, PLA, RG 23D)

 Printing of Bond Registers for Exports (Bond Registers, Running Bond

Registers)

 Interface to External Reporting Tools

 Printing of Sales Tax Register

 Printing of VAT Register

 Printing of TR6 Challan

 SAP AG 2005
Excise Registers Printing

 Customizing Settings

 IMG Path: SPRO->Logistics General->Tax on movement of Goods-

>India-> Business Transactions->Excise Registers

 Maintain SAP-Script layouts in CIN Customizing for each company

code

 Maintain Register Balances/Material Form for the first time through

transaction SE16

 RG23A/C Part 2 Register

 SAP AG 2005
 RG1 Register
Excise Registers Printing
 Document Printing Process
Update RG1 /
Subcontracting Excise Stock/
Part I Register
order

Confirmation
Extract Data
By user

Yes
No
Print End
Re-extract reqd?
Registers

 SAP AG 2005
Sales Tax Registers Printing

 Document Printing Process

 Extract the data for Sales Tax Register printing based on the following
criteria
 Company code and Fiscal year
 Posting date / Document date range
 Tax code & Tax Condition Type
 Ship from & Ship to location

 Additional Standard Report – RFSUMV000 also available for VAT

Related Tax Reporting

 SAP AG 2005
Statutory Reporting : Unit Summary

You should now be able to:

 Generate Excise related and Sales tax related reports

 Configure the relevant settings for the script layouts

 SAP AG 2005