SAP SD CIN Configuration

By Shesagiri What is CIN? CIN Means Country India Version In Indian Taxing procedure, Excise Duty plays a vital role in manu acturing cenario!s" Excise related con iguration is #no$n as CIN con iguration" CIN Con iguration is a topic in itsel " Some in o on CIN Con iguration %it may not appear as understanda&le &elo$, &ut i you chec# on screen, it $ill &e understood &etter' Country Version India comes $ith our pricing procedures as ollo$s( ) *IN+,C %Sales rom manu acturing plants' ) *INE-. %Export sales' ) *INDE. %Sales rom depots' ) *INST/ %Stoc# trans ers CIN( IM0 1 2ogistics ) 0eneral 1 Tax on 0oods Movement 1 India 1 Basic Settings 1 Maintain Excise 3egistrations In this IM0 activity, you maintain the data relating to your excise registrations" ) Enter each o your excise registrations, speci ying a our)character code or each Excise 3egistration Ids In this activity, you maintain excise registration IDs" 4ou create one ID or each o your &usiness5s excise registrations" ) +or each excise registration in your &usiness create a registration ID, and state( ) 6hich taxes the registration covers %additional excise duty, special excise duty, and cess' +ields or any taxes that are not covered $ill &e hidden in transactions involving excise duty" ) The maximum num&er o items to &e printed on each excise invoice ) 6hether you are allo$ed partial CENV,T credits Maintain 3egistration ID N7MBE3, Excise code num&er, excise registration num&er ECC Num&er( Speci ies the organi8ation5s ECC num&er" Excise 3egistration Num&er( , num&er assigned to each premises or location that has registered as a manu acturer $ith the excise authorities" Every entity $ith an excise registration num&er is re9uired to #eep its o$n excise &oo#s" Excise range( Speci ies the excise range in $hose area the excise registration is located" Excise Division( Speci ies the excise division in $hose area the excise registration is located" Excise Collectorate( The code o the excise collectorate in $hose area the excise registration is located"

Indicator or con irming, ,ED usage ,dditional Excise duty .ercentage" These are liva&le under the additional duties o excise act" These duties are in addition to &asic excise duty and special excise duty" Example ) ,dditional Excise duty is liva&le in case o textile products, to&acco and sugar" Similarly or SED CESS Num&er o Items in Excise Invoice Sho$s the maximum num&er o line items that the authorities allo$ per excise invoice" Dependencies ) This in ormation is used $hen you create an excise invoice in Sales and Distri&ution %SD' or actory sales and or other movements" This in ormation is used to split the trans er postings5 items into multiple su&contracting challans" Excise register set description( Description o the excise registers set" .artial CENV,T Credit( Indicates that the excise registration ID is allo$ed to credit only a portion o its input excise duty to its CENV,T account Dependencies ) 6hen you post a goods receipt, the system splits the input excise duty on the material into its deducti&le and nondeducti&le amounts" It posts the deducti&le duty to the appropriate CENV,T account, and adds the nondeducti&le duty to the material value" This in ormation is also sho$n $hen you post the vendor5s excise invoice" Maintain Company Code Settings" In this IM0 activity, you maintain the data relating to your company codes" Document Type or CENV,T .ostings" It controls, $hich document type the system uses $hen ma#ing CENV,T postings in +inancial ,ccounting %+I'" :ere ED is document type or cenvat posting" Indicator or providing de&it account over$riting De&it ,ccount ;ver$rite Indicator" - ) Indicates de&it accounts can &e over$ritten" 7se In excise <ournal voucher transaction" It provides the lexi&ility to the user to enter the de&it account o his choice depending on the nature o transaction" ,utomatic &alance Indicator ) Excise year start month" The calendar month mar#ing the &eginning o the excise year" This start month represents the month or the start o the excise invoice num&er range" The month => is entered here indicating ,pril o the calendar year as the start month or excise invoices" ,ny change &y the Excise authorities regarding start month should &e ta#en care o &y an entry in this ield and initiali8ation" Excise invoice selection procedure (Excise invoice selection type" To indicate the method opted &y the company or selecting the excise invoice" It can &e either earliest or latest invoices that $ere received" Num&er o excise invoices to &e selected Indicates the num&er o excise invoices that needs to &e selected in the excise invoice selection"

Days to &e considered or excise invoice selection Num&er o days rom document date or excise invoice selection" Example ) I the value o this ield is ?= and today is ?@)=A)BC" The excise invoice selection $ill sho$ the related invoices only or the period =@)=A)BC to ?@)=A)BC" Document type or TDS +I posting( +inancial accounting document type or TDS posting" Document type or +I posting on 7tilisation +inancial accounting document type or TDS posting" Indicator or item level excise duty round o ) This indicator is to &e used or deciding $hether Item level excise duty amount rounding o is re9uired during procurement cycle" I mar#ed 5-5 then the excise duty amount $ill &e rounded o to the nearest rupee at the .urchase order level" This $ill not round o the CENV,T credit to &e ta#en" I the duty amount is less than one rupee then no rounding is done 3ounding o o Excise duty or outgoing excise invoice ) 4ou can round o the Excise amount to &e paid during an outgoing Excise invoice &y mar#ing this indicator as 5-5" The rounding is done at the item level or each item $here the amount is greater than D 3upee" Immediate Credit on Capital 0oods ) Instructs the system, $hen you veri y a goods receipt or capital goods, to immediately post hal o the input excise duty to the appropriate CENV,T accounts" The rest is posted the CENV,T on hold account, or use in the ollo$ing year" CVD Clearing ,ccount ) Speci ies $hich 0E2 account the system credits $hen you ta#e a CENV,T credit on countervailing duty in the Incoming Excise Invoices transaction" Exchange rate type ) /ey representing a type o exchange rate in the system" ) 4ou enter the exchange rate type to store di erent exchange rates" Example ) 4ou can use the exchange rate type to de ine a &uying rate, selling rate, or average rate or translating oreign currency amounts" 4ou can use the average rate or the currency translation, and the &an# &uying and selling rates or valuation o oreign currency amounts" Exchange rate type to &e used or Export excise duty converts ) 6hen you are creating an Excise invoice or export sales then the exchange rate or duty calculation $ill &e pic#ed up using this Exchange rate type" Maintain .lant Settings ) In this IM0 activity, you maintain excise in ormation relating to your plants" .lant Settings ) In this activity, you maintain excise in ormation relating to your plants" +or each plant( ) Speci y $hether it is a manu acturing site or a depot" ) ,ssign it an excise registration ID" ) 4ou can assign the same ID to more than one plant, i re9uired"

Depot ) Indicates that the plant in 9uestion is a depot" ) Depots are re9uired to prepare register 30 ?AD, and ollo$ di erent procedures or goods receipt and invoice generation" ) Num&er o goods receipt per excise invoice" ) Multiple 03 or one excise invoice, Single credit ) Multiple 03 or one excise invoice, multiple credit Maintain Excise 0roups ) In this IM0 activity, you de ine your excise groups" +or each excise group, you can also control ho$ various excise invoice transactions $ill $or#" Excise 0roups ) In this activity, you de ine excise groups" ,n excise group allo$s you to maintain a separate set o excise registers and excise accounts" The 30 ?A,, 30 ?AC and .2, serial num&ers are created or an excise group" 3ecommendation ) 7nder normal circumstances, excise authorities re9uire every &usiness to maintain only one set o excise registers and one set o accounts" But through exemption rom the authorities, multiple &oo#s can &e maintained" I your company has only one set o excise registers, then you need to maintain only one excise group" D" Create one excise group or each set o registers that you need to #eep" ?" ,ssign the excise groups to plants" A" Maintain $hether this Excise group is or a depot or not" I you receive only one consignment or an Excise challan then you can leave 035s per EI as &lan#" I you receive multiple 035s or a given Excise challan and $ould li#e to avail multiple credit mar# the 03s per EI as 5Multiple 035s or one excise invoice, multiple credit5" ,lternatively i you $ant to availa the credit only a ter all the goods receipts have &een made mar# it as 5 Multiple 03 or one excise invoice, single credit5" >" I you $ant to automatically create Excise invoice during Sales cycle at the time o &illing the tic# the indicator 5Create EI5 F" During depot sales i you do not $ant to do 30?AD selection and posting separately and $ould li#e to complete 30?AD selection in one step mar# the indicator 530?AD ,uto post5" This $ill post the selected records into 30?AD automatically" 4ou cannot cancel the selection later" G" I the indicator 5De ault 03 9ty5 is mar#ed system $ill de ault the Excise challan 9uantity on to the 0oods receipt i the Excise invoice num&er is given in the pop)up" C" I the indicator 5+olio no create5 is mar#ed system $ill generate +olio num&ers or 30?AD during receipt o excise invoice into depot" @" 5,utomatic posting5 $hen tic#ed $ill post the Excise invoice other movements automatically along $ith creation in single step" B" 5Create .artD or Bloc# Stoc#5 $hen mar#ed $ill create a .artD during the receipt o material into Bloc#ed stoc# " D=" 5Create .artD or ST;5 $hen mar#ed $ill create a .artD during the receipt o material through inter plant trans ers" DD" 5Create .artD or consumption stoc#5 $hen mar#ed $ill create a .artD during the receipt o material into consumption stoc#" Excise 0roup 0overns $hich set o excise registers a &usiness transaction $ill &e included in"

+ollo$ing is the relation &et$een excise group, plant and registration" ) In de ine excise groups in Customi8ing" Then, in transactions involving excise duty, or example, $hen you post a vendor5s excise invoice, you speci y $hich excise group you are using" This in ormation tells the system $hich 0E2 accounts to post the excise to" ,t the end o the period, $hen you come to prepare your excise registers, you create di erent sets or each excise group" Indicates that the plant in 9uestion is a depot" ) Depots are re9uired to prepare register 30 ?AD, and ollo$ di erent procedures or goods receipt and invoice generation" ) 03 .er Excise Invoice ) Multiple 03 or one excise invoice , Multiple credit ) Multiple 03 or one excise invoice , Single Credit Create Excise Invoice ,utomatically ) Instructs the system to automatically create a Sales and Distri&ution %SD' excise invoice immediately you create a commercial invoice or a pro orma invoice" The excise invoice is created in the &ac#ground" ) I you $ant to ma#e use o this unction, you must also de ine the de ault plant, excise group, and series groups in Customi8ing or Sales and Distri&ution %SD', &y choosing Excise 0roup ) Series 0roup Determination" 30?AD Sales Creation and posting option ) 30?AD ,utomatic ;ption i selected $ill create Depot excise invoice &y posting the selection o excise invoices in single step" I this is not selected then you need to separately do 30?AD selection ollo$ed &y .0I and then 30?AD veri ication and posting" I you need automatic posting o 30?AD selection then the .ost 0oods Issue should have &een completed &e ore running 30?AD selection" De ault excise 9ty in 03 ) I this indicator is tic#ed then $hile doing 0oods 3eceipt using 5MB=D5 system $ill de ault the excise invoice 9uantity on to the 0oods receipt document" +olio num&er or depo .osting ) I this indicator is mar#ed then $hile creating Excise invoice or other movements system automatically does the Veri y and .ost" 4ou need not separately .ost the excise invoice ,lso $e can set indicator or creation o part D or( ) Bloc#ed stoc# ) Stoc# transport order ) Consignment stoc# Maintain Series 0roup ) In this IM0 activity, you de ine the di erent excise series groups $ithin your company" Series groups allo$ you to maintain multiple num&er ranges or the outgoing excise documents" Based on excise regulations and exemptions rom the authorities you can maintain multiple num&er series or outgoing documents" But each o these series has to &e declared to the excise authorities"

) De ine excise series groups &ased on type o outgoing document ) ,ssign series group to excise registration ID ) I no inancial postings are re9uired or an Excise invoice in this seris group then you tic# the 5No utili8ation5 indicator" ) I the CENV,T has to &e paid immediately and you need not $ait or the +ort nightly payment then mar# the 5Immediate 7tili8ation5 Iindicator" Example ) 4ou could de ine t$o series groups, group ==D or excise invoices, and group ==? or FC +> documents" ) No account postings or CENV,T in sales cycle ) No utili8ation +lag I you do not need any CENV,T utili8ation or an excise invoice &ut $ould li#e to <ust generate an excise invoice then you need to mar# this indicator" I the lag is chec#ed then system $ill create an Excise invoice in the given Series group &ut there $ill not &e any account postings or .art? postings" Immediate 7tili8ation o CENV,T ) Speci ies that $hen you create an excise invoice, the system immediately pays the amount rom CENV,T and creates the .art II entry" Such invoices $ill not &e listed or ortnightly utili8ation" I you have &oth ortnightly and immediate utili8ation or the same excise group, the account determination $ithin CIN IM0 should point to the ED interim account" ,ccount determination or immediate payment $ill &e done exactly the same as &eing done or ortnightly utili8ation program" Maintain Excise Duty Indicators ) In this IM0 activity, you maintain the excise duty indicators" IM0 1 2ogistics ) 0eneral 1 Tax ;n 0oods Movement 1 India 1 Basic Settings 1 Determination o Excise Duty 1 Select Tax Calculation .rocedure In this IM0 activity, you speci y $hich tax procedure you $ant to use or determining excise duties and sales taxes on input materials in India" ) I you use condition)&ased excise determination, use a copy o the tax procedure T,-INN" ) I you use ormula)&ased excise determination, use a copy o the tax procedure T,-IN*" This tax procedure also supports condition)&ased excise determination, so that you can $or# $ith &oth concurrently" 6e strongly recommend that ne$ customers use condition)&ased excise determination" Note that once you have started using a tax procedure, you cannot s$itch to another one, other$ise you $ill not &e a&le to display old documents" Maintain Excise De aults ) In this IM0 activity, you de ine $hich tax procedure and pricing condition types are used in calculating excise taxes using ormula)&ased excise determination" I you use condition)&ased excise determination, ill out the CVD cond" ield and leave all the others &lan#" I you use ormula)&ased excise determination, ill out all o the ields as ollo$s( ) Enter the tax procedure and the pricing conditions that are relevant or excise tax processing" ) Speci y the purchasing and sales conditions types used or &asic excise duty, additional excise

duty, special excise duty, and cess" ) Speci y the conditions in the sales order that are used or excise rates" ) Speci y the countervailing duty condition type used or import purchase orders" See also ( S,. 2i&rary )1 2ogistics )1 Country Versions )1 ,sia).aci ic )1 India )1 Materials Management %MM' )1 Condition)Based Excise Determination and )1 +ormula)Based Excise Determination" IM0 1 2ogistics ) 0eneral 1 Tax ;n 0oods Movement 1 India 1 Basic Settings 1 Determination o Excise Duty 1 Condition)Based Excise Determination 6hen you enter a purchasing document, or example, a purchase order, the 3EA System automatically calculates the applica&le excise duties using the condition techni9ue" +eatures ( The standard system comes $ith t$o tax calculation procedures" T,-INN is only supports condition)&ased excise determination, $hereas T,-IN* supports condition)&ased excise determination and ormula)&ased excise determination" Both tax procedures contain condition types that cover all o the excise duties and sales taxes applica&le" Since the exact rates o excise duty can vary on a large num&er o actors, such as $hich vendor you purchase a material rom, or $hich chapter ID the vendor stoc#s the material under, you create condition records or every sort o excise duty" 6hen you come to enter a purchasing document, the system applies the excise duty at the rates you have entered in the condition records" Customi8ing ( Ma#e the settings in Customi8ing Basic )1 India )1 or 2ogistics H 0eneral, &y choosing Taxes on 0oods Movements ,ccount )1 Excise Duties 7sing Condition Techni9ue and I)1 Settings Determination" These activities include one activity $here you de ine a tax code or condition)&ased excise determination" Master Data ) Create condition records or all excise duties that apply, and enter the tax code or condition)&ased excise determination in each" Day)to)Day ,ctivities ) 6hen you enter a purchase order or other purchasing document, enter the tax code or condition)&ased excise determination in each line item" The system then calculates the excise duties using the condition records you have created" 6hen the ordered materials arrive, you post the goods receipt and the excise invoice" The system posts the excise duty to the appropriate accounts or deducti&le input taxes $hen you enter the excise invoice" Creating Condition 3ecords or Excise Duty D" In the command ield, enter +VDD and choose " ?" Enter the condition type that you $ant to create a condition record or and choose "

The /ey Com&ination dialog &ox appears" A" Select the com&ination o o&<ects that you $ant to create the condition record or" ;n the dialog &ox, Control Code means Jchapter ID"J So, or example, to create a condition record or a tax that applies to a com&ination o country, plant, and chapter ID, select CountryE.lantEControl Code" >" Choose " F" Enter data as re9uired" ) In the Tax Code ield, enter the dummy tax code that you have de ined" G" Save the condition record" +ormula)Based Excise Determination ) 6hen you execute a &usiness transaction involving materials that are su&<ect to excise duty, the system automatically calculates the duty or you" In order or the system to &e a&le to determine $hich rate o excise duty to apply, you must have maintained all the data on the Excise 3ate Maintenance screen, $hich you can Master DataKaccess rom the S,. Easy ,ccess screen &y choosing Indirect Taxes Excise 3ate Maintenance" 4ou maintain the ollo$ing types o data( ) .lant master data 4ou assign each o your plants an excise duty indicator" 4ou can use the same indicator or all the plants $ith the same excise status rom a legal point o vie$, such as all those that are in an exempt 8one" See also the in ormation a&out manu acturers that are only entitled to deduct a certain portion o the duty %see .artial CENV,T Credit'" ) Vendor master data +or each o your vendors $ith the same excise status rom a legal perspective, you de ine an excise duty indicator" 4ou must also speci y the vendor type H or example, $hether the vendor is a manu acturer, a depot, or a irst)stage dealer" 4ou must also stipulate i the vendor 9uali ies as a small)scale industry" +or each permutation o plant indicator and vendor indicator, you then create a inal excise duty indicator" ) Customer master data Similarly, you assign the same excise duty indicator to each o your customers that share the same legal excise status" ,gain, or each permutation o plant indicator and customer indicator, you then create a inal excise duty indicator" ) Material master data Each material is assigned a chapter ID" ) Excise tax rate +or every chapter ID and inal excise duty indicator, you maintain the rate o excise duty" I your &usiness only 9uali ies or partial CENV,T credit, you must customi8e your system accordingly" 2et us consider an example to illustrate ho$ the system determines $hich rate o excise duty to apply to a material" ,ssume you are posting a sale o &all &earings to a customer" The system automatically determines the rate o excise duty as ollo$s( D" 2oo#s up the customer master data to see $hat status you have assigned the customer" 2et5s assume you5ve assigned the customer status A"

?" 2oo#s up the plant master data to see $hat status you have assigned the plant" Similarly, your plant has status ?" A" The system loo#s up the ta&le under Excise Indicator or .lant and Customer to see $hat the inal excise duty indicator is or customer status A and plant status ?( It is C" >" The system determines the chapter ID o the &all &earing or the plant" 2et!s assume the chapter ID at plant or the &all &earings is D==="=D" F" +inally, the system loo#s up the ta&le under Excise Tax 3ate to see $hat rate o duty applies to chapter ID D==="=D under status C" De ine Tax Code or .urchasing Documents ) In this IM0 activity, you de ine a tax code or the purposes o calculating excise duty $hen you enter purchasing documents" ;nly carry out this activity i you use condition)&ased excise determination" ) Create a ne$ tax code, and set the tax code type to V %input tax'" Do not ma#e any other settings or it" ) ,ssign Tax Code to Company Codes In this IM0 activity, assign the tax code or purchasing documents to the company codes $here it $ill &e used" ;nly carry out this activity i you use condition)&ased excise determination" Classi y Condition Types ) In this IM0 activity, you speci y $hich condition types you use or $hich sort o tax" Note that this only applies to condition types that you use $ith the ne$ excise determination method" The system uses this in ormation $hen you create a document rom another one" +or example, $hen you enter an incoming excise invoice rom a purchase order, or $hen you create an outgoing excise invoice rom a sales order, the system determines the various excise duties in the excise invoice using the in ormation that you have entered here" In addition, $hen you create a purchasing document, the system only uses the condition types that you enter here" ) +or taxes on purchases, use the condition types contained in the tax procedure" ) +or taxes on sales, use the condition types contained in the pricing procedures" The standard system comes $ith sample settings or the tax calculation procedures and pricing procedures" 7se these settings as a &asis or your o$n" IM0 1 2ogistics ) 0eneral 1 Tax ;n 0oods Movement 1 India 1 ,ccount Determination De ine 0E2 ,ccounts or Taxes ) In this IM0 activity, you speci y $hich 0E2 accounts you $ill use to record $hich taxes" 3e9uirements ) 4ou have set up 0E2 accounts or each o the processing #eys listed &elo$" ) ,ssign an account to each o the ollo$ing posting #eys" The accounts or VSD, VS?, and VSA are used as clearing accounts during excise invoice veri ication" ) VSD %&asic excise duty' ) VS? %additional excise duty' ) VSA %special excise duty'

) VSF %sales tax seto ' ) M6S %central sales tax' ) M6A %local sales tax' ) ES, %service tax' ) ESE %service tax expense' Speci y Excise ,ccounts per Excise Transaction ) In this IM0 activity, you speci y $hich excise accounts % or excise duty and CENV,T' are to &e posted to or the various transaction types" Enter all the accounts that are a ected &y each transaction type" I you use su& transaction types, enter the accounts or each su& transaction type as $ell" Transaction type 7T2L is used or determining accounts only $hile posting excise *Vs and also i the payment o excise duty has to &e done ortnightly" The ortnightly CENV,T payment utility pic#s up the credit side accounts rom the transaction types o 03.;, E6.;, and T3GC or determining the CENV,T and .2, accounts" There is no separate transaction type or ortnightly payment" Example( ) Excise TT DC ind ,ccount name ) 03.; C3 CENV,T clearing account ) 03.; C3 30 ?A BED account ) 03.; D3 CENV,T on hld account Speci y 0E2 ,ccounts per Excise Transaction ) In this IM0 activity, you assign the excise and CENV,T accounts to 0E2 accounts" 6hen you come to execute the various transactions, the system determines $hich 0E2 accounts to post to &y loo#ing at the( ) Excise group ) Company code ) Chart o accounts +urthermore, i you $ant separate account determination settings $ithin an excise group, you can also use su& transaction types" 3e9uirements 4ou have already( ) De ined the 0E2 accounts ) De ined the excise groups ) Maintained the transaction accounts ,ctivities ) +or each excise group, assign the excise and CENV,T accounts to 0E2 accounts" +or most &usinesses, one set o accounts $ill su ice or all transactions" Note ( you need not remit the CENV,T to the excise department immediately, so maintain the credit account or transaction type D2+C as an excise duty interim account" This $ill &e set o $hen you remit the duty" Con ig setting needed to &e done in order to get the Excise Details Screen in Material Master"

Even though this unctionality is availa&le in enterprise version, a small con iguration step has to &e made in Screen Se9uences or Material Master" +ollo$ing document helps you to do this con iguration" ) Material Master M 2ogistics 0eneral D" 0o to IM0 De ine Structure o Data Screen or each Con iguring the Material master Screen Se9uence" ?" Select your screen se9uence" 7sually it $ould &e ?D" Select the same and clic# on Data Screen in the le t rame" A" ;nce the data screens are exhi&ited, select data screen no" DF, ie" SS9" ?Dand Scrn DF, $hich is N+oreign Trade( Import DataO" Select the same and clic# on Su& screens in the le t rame" >" 0o to the last su& screen i"e" ?D)DF)G ) S,.2M0DD) ===D and select the same" Clic# on ta& vie$ su& screen and ensure that the su& screen is &lan#" F" No$ in the last su& screen i"e" no"G you delete S,.2M0DD H ===D and instead add S,.2*DIPM,TE3I,2PM,STE3 and in the screen no" ??=F" G" Save the setting" C" Create a Material Master and chec# $hether in Screen +oreign Trade H Import, Excise related su& screen appears"