WINLEN India Localisation: SAP AG 2005

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

SAP AG 2005
: 1 day
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 10 Sales with VAT Unit 11 Depot Operations Unit 12 Exports
Unit 6 Procurement Process

Unit 7 Procurement with VAT Unit 8 Subcontracting
Unit 13 Statutory Registers and Form Tracking

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) SCILs 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) SCILs 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 as Duty to the Govt.
Receipt Qty : 10 PC
GR at Factory Gate
CENVAT / Part II Register Excise Invoice Capture and Post
ED Credit : Rs 160
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. 160 to the Customs House GR at Factory Gate Capture & Post CENVAT / Part II Register
Receipt Qty : 10 PC
CVD Credit : Rs 160
SAP AG 2005
Commercial Invoice
Subcontracting
Input
Challan FACTORY Sub contractor
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 as Duty to the Govt. GR at Recv. Plant
CENVAT / Part II Register
Excise Invoice Capture and Post
ED Credit : Rs 160
SAP AG 2005
Sale from Factory
Supplying Plant
Excise Invoice Price: 1000 Qty : 10 PC Duty 16% + 160 Dispatch
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 Qty : 10 PC Duty 16% + 160 Dispatch
Debit: Rs. 160 Reduce qty by 10
RG23D Register
SAP AG 2005
Export Sale
Supplying Plant
Under Bond Price: 1000 Qty : 10 PC Duty 16% + 160 No Bond Update Excise database
Invoice
Debit: Rs. 160
Dispatch
Fortnightly utilization CENVAT/Part II Register PLA Register
SAP AG 2005
TDS Overview
Vendor Income tax office
Vendor
File Returns Deduct Tax from Vendor Issue 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 Panvel Depot

E3 S4
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 : An Overview

India Localization (Country India Version-CIN) is no longer an addon 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

Basic Settings
Maintain Excise Registrations IDs 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

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 / non-deductible ED at GR SAP AG 2005
Max no. of line items in outgoing EI

Menu Path: SPRO Logistics General Tax on Goods Movement India Basic Settings Company Code Settings
Separate Doc Types for Cenvat credit Utilization User can edit Dr A/c during JV Trans First month for Excise Year Utilizes from PLA in JV
Excise Inv. Selection
SAP AG 2005

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
SAP AG 2005
GRs per EI can be set as: Mult. GR, Mult. Credit Mult. GR, Single Credit 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
Setup of Organizational Special Scenario
Elements
Company
Registration 1
Registration 2
Depot Registration
Plant
Manufacturing Plant Registration
Excise Group 2
Excise Group1
SAP AG 2005

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
Master Data
Maintain Chapter IDs 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
Business Transactions
Incoming Excise Invoices Outgoing Excise Invoices Subcontracting Exports Under Excise Regulations Utilizations Excise Registers
SAP AG 2005
Tools
Long Texts Number Ranges Message Control
SAP AG 2005
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
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Maintenance of Excise Master Data: Customer Master
Customer Pricing Grp
Customer Excise Details Customer Excise Indicator
SAP AG 2005
Maintenance of Excise Master Data: Customer Master

Excise Indicator Determination for Customer
Customer Excise Indicator
Final Excise Indicator
SAP AG 2005
Maintenance of Excise Master Data: Plant Settings
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 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
EXCEPTIONAL RATES
CHAPTER ID PLANT MATERIAL VENDOR
SAP AG 2005
Excise Master Data Excise Rate Determination

Rate Determination begins here
YES
Is the Vendor an SSI? Get the Chapter ID Of the material NO Get the Plant Excise Indicator Get the Vendor Excise Indicator
Get the SSI Duty rates
YES
Has Exceptional Rate been maintained?
Get the Excise Indicator
Get the Exceptional Duty rates
NO
Get the Rates based on Excise Indicator The Chapter ID
SAP AG 2005
Excise Setup: Unit Summary

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 RM VAT RM Nonable VAT able (ZIP2) (ZIP3) D0 R1 R2 R4 R5 D0 I1 I2 I4 I5
CST CG CG VAT CG Non- (ZIP1) able VAT able (ZIP4) (ZIP5) D0 C1 C2 C4 C5 D0 L1 L2 L3 L4 D0 N2 -
0% 1% 4% 10% 20%
SAP AG 2005
Tax Code determination (Domestic) Access Sequence

L.S.T Vs C.S.T Tax Rate
Country Key
Region of Delivery Plant
Region of Customer
Customer Tax Classification
Material Tax Classification
Domestic
Tax Code
SAP AG 2005
Tax Code determination (Export) Access Sequence

Export Tax Rate
Country Key
Country of Delivery Plant
Customer Tax Classification
Material Tax Classification
Tax Code
SAP AG 2005
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
TAXINN Set-Up
SAP AG 2005
TAXINN - Assign tax procedure to Country
SAP AG 2005
TAXINN - Maintain Excise Defaults
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TAXINN - Classify Condition Types
SAP AG 2005
TAXINN Properties of Condition types

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
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TAXINN - Create Tax code
SAP AG 2005
TAXINN - Assign Tax Code to Company Code
Company Code
Tax code
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TAXINN - Maintain condition record
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TAXINN - Maintain Condition Record - SD
SAP AG 2005
TAXINN - Create PO
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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
SAP AG 2005
Applicable only on full payment of invoice to vendor
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 tax amount for which credit can be taken. SAP AG 2005
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
Full Compliance across the Distribution Process
SAP AG 2005
CENVAT Availment & Utilization

ON-LINE TRANSACTIONS
GOODS RECEIPT SALES EXCISE INVOICE PROCESS
Credit CENVAT on-hold A/c VENDOR EXCISE INVOICEPROCESS Credit CENVAT A/c
CENVAT on hold for Cap Goods

DESPATCH Debit ED Payable A/c
CENVAT Account
Debit CENVAT A/c
MONTHLY TRANSACTIONS
DEPOSIT FUNDS IN PLA ACCOUNT SELECT REGISTER
Credit ED Payable A/c (Consolidated Entry)
PLA A/C
Credit PLA Account Debit PLA A/c
Excise duty Utilization Transaction
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

DELIVERY Batch Utilization
Streamlined Excise Tax Processing

GOODS ISSUE
COMMERCIAL INVOICE
PROFORMA INVOICE
EXCISE INVOICE GENERATION AND PRINTING

Excise Invoice Creation in Background Automatic Determination of Excise and Series Group Provision for immediate utilization of CENVAT SAP AG 2005 Posting to Profitability segment
EXCISE INVOICE GENERATION AND PRINTING
COMMERCIAL INVOICE
Separate Commercial and Excise Invoice

Sales Order
Delivery
Proforma Invoice
Posting to Excise duty payable account
Posting to CENVAT accounts for immediate Utilization
Excise Duty posting
Excise Invoice Printing Commercial Invoice
SAP AG 2005
Single Commercial and Excise Invoice
Sales Order
Delivery
Invoice
Posting to Excise duty payable account Posting to CENVAT accounts for immediate Utilization
Excise Duty posting
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 OR
LF JF
F2 JEX F2
Define Allowed Delivery types to Billing types Define Invoice split through data transfer formula in copy control
SAP AG 2005

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 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 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 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 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 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
SAP AG 2005
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
Monthly Utilization
Option for Cenvat Payment from Service Tax Option for Service tax Payment from Cenvat Service tax / ECS Payment account Service Tax / ECS Credit 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 Excise Duty posting Excise Invoice Print
SAP AG 2005
Excise Document Flow

Order
Sold-to-party : 2300 Item Material Qty 10 400 5
Delivery
Ship-to-party : 2300
Item Material Qty 10 400 5
Billing
Bill-to-party : 2300
Excise Invoice
Document flow of Excise Invoice Order . Delivery . . Billing . . .Excise Invoice
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
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
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 & Tax Payment Inventory Valuation
VAT Accounting
SAP R/3
Invoice Verification
Billing
Delivery
Sales Order
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
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Business Place
Entity Business Place will primarily be used for Defining
Vat Registration Number Official Number Range for :
Determining
All Billing Transactions in SD All Credit Memo Transactions in MM

Consolidating
Determining
data for Period End Processing requirements
"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

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.

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State specific number range requirements may be specified
Solution: Business Place is used to determine number range objects.
SAP AG 2005
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 Basic Rate Rs85X 10 pcs= Rs 850 Excise Duty @20 = Rs 170 Tax Base Amount Rs 1020 VAT Rs. 102 Total Rs.1122
Plant details
Customer master
Material master
Tax procedure TAXINJ

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10% VAT JIN 6
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
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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
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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 the customer. IN No Export -BOS
Yes Check the Tax code in table J_1iexcdef Same Tax Code
Deemed Export - BOS
Different Tax Code Exempted Tax Code
Check the Tax code in table J_1iexmptcode
Exempted Sales - BOS
Normal Tax Code Check the VAT Unregistered Registration No in the Customer Customer Master Tax code Field
Registered customers Sales - VAT SAP AG 2005
Yes
Un Registered customers Sales - BOS
Organization Structure
Company Code (EWT) Chart of A/c INT
Sales Area (0001/ 01/ 01)
VAT Reg ID 1
Ex gp E1, Series gp S1 Domestic, S2 Exports
VAT Reg ID 2
Ex gp E2, Series gp S3
Plant 1 Mumbai IN10 Maharashtra

SAP AG 2005
Plant 3 Chennai IN20 Shipping point 0002
Shipping point 0001
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)

Plant details
Customer master
Material master
Tax procedure TAXINJ

SAP AG 2005
12.5% VAT JIN 6
Intra State Finished goods (VAT exempt )

1 2 3
Bill of Sale Shipping Sales Order Billing Accounting documents
4
Excise invoice
5
Period end processing Sales revenue account Customer account CENVAT suspense CENVAT suspense ED payable
NVAT-MAT1 VAT 0%
Intra-State Customer Cus_intra1

Accounting documents
SAP AG 2005
Intra State - Depot Sales (VAT applicable)

Mumbai Plant IN10 (Factory) Mumbai Plant IN 30 Purchase Order (Depot)
Delivery
Sales Order
VAT Register Updation
Excise Invoice
Goods Issue
Billing
Stock in Transit
Mumbai Plant IN 30
(Depot)
Goods Receipt
SAP AG 2005
Inter State -Finished goods

2
Shipping
Sales Order
Inter State Customer (KAR) Cus_inter1
VAT- MAT1 (VAT rate 10%)
5
Period end processing
Billing
3
Bill of Sale
Dr.Customer a/c Cr.Sales revenue a/c Cr.CST payable Cr. Cenvat Suspense
Dr.CENVAT suspense Cr. ED payable
4
Excise invoice
Accounting documents
SAP AG 2005
Exports -Finished goods 1
Sales Order
Shipping
Billing
3 5
Bill of Sale Period end processing
4
Foreign Customer (UK) Cust_exp1 MAT-EXP Excise invoice
SAP AG 2005
Deemed Exports -Finished goods 1

2
Sales Order
Shipping
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
Tax procedure ZEXVAT

SAP AG 2005
0% VAT ZIN 1
Inter-State Stock Transfer via SD
SAP AG 2005
Intra-State Stock Transfer

Mumbai Plant 1
STO from Plant 2 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 Dr ED Clearing A/c
= Rs16 = Rs16
Excise Invoice
VAT Register Updation (Qty &Value)
Stock in Transit
Mumbai Plant 2
No Accounting Entries and
No Invoice verification No VAT credits
Goods Receipt
VAT Register Updation (Qty &Value)
Dr RG23A/C A/c Cr ED Clearing A/c
= Rs16 = Rs16
Capture & Post Excise Invoice
MAHARASHTRA VAT Reg ID 1
SAP AG 2005
Sales Process : Unit Summary
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
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 companys 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
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 Capture (Depot)
Delivery
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

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)

SAP AG 2005
Letter of Undertaking (UT-1) Under Rebate

Pre-Sales Activities Process customer inquiries Procure License
Sales Order Processing Inventory Sourcing
Prepare Sales order & Proforma Invoice Receipt of Customer LC Verify delivery dates and 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
Sold-to-party : 2300
Billing
Sold-to-party : 2300
Excise Invoice
Does Bond exist?
Create AR Doc
Capture License
Bond Register
SAP AG 2005
Documents specific to Export Processing

POST-SHIPMENT NEGOTIATIONS
LICENSE APPLICATION
Form-A/GSP certificate of origin Annexure IV Annexure II Annexure III Annexure IIIA Inspection Certificate LC Cover BRC Commercial Invoice Bill of Exchange Forward Cover
DBK Recovery PRE-SHIPMENT ACTIVITIES

Proforma Invoice Export License/Country of Origin Customs Invoice SDF form/ or GR Packing List ARE1 & ARE3 Tracking for Running Bonds Shipping Instruction Commercial Invoice with actual supply PGI Tracking of Bank Guarantee & other EMD GSP Export Register License Application, Allocation, Utilisation and Endorsement Registers Proof of Exports LEGAL REPORTING REQUIREMENTS
SAP AG 2005
Exports Sales
Sales Order currency No Sales Under
Sales under no-bond?

Customer Country
Bond
Export Sale
Yes Bond Register
CENVAT / Part II Register
Download
ED Credit
Proforma Excise Reference

Optional Tax Calculation Delivery
Excise Value
Excise Calculation
Commercial Invoice
SAP AG 2005
Formula
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 ARE1 Excise Dept for manufacturer
Manufacturer (Exporter)
ARE1 III, IV
I, V ARE1 I to V ARE1 I, II, V Excise Invoice Port (Customs) ARE1 II (Sealed)
Excise Invoice
SAP AG 2005
Process Flow for exports under Bond , for Merchant Exporter
Manufacturer Bond
III CT 1 CT 1 Excise Invoice ARE1 Merchant Exporter CT 1 I, V ARE1 I, II, V Excise Invoice ARE1 II (Sealed) CT 1 III, IV ARE1
Excise Dept for manufacturer
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

Document Details Total Duties Certification Dates Bond/UT -1 Detail Excise Invoice Summary
Item Data
Item Material Details
Quantity
Duty Rates Duty Values License
Addresses
Additional Data Part II
Package Details
Reference Documents Additional Data
SAP AG 2005
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 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 ARE-1s J_1IARE1 ARE-3s J_1IARE3
Official number range object

Separate number range for each series group
Customizing
SAP AG 2005
IMG Path : Logistics General Tax on Goods Movements India Tools Number Ranges.
ARE Automatic Address Determination
Address of Custom Department (Master Data Config- Postal Addr) Address in ARE
Address of Excise Department
SAP AG 2005
(Master Data Config Series Grp)
ARE Document Processing ARE Automatic Text determination
# Mode of Transport # Export Seal No Long Text Function Customizing
ARE -1 / ARE-3 Forms
SAP AG 2005
ARE Output determination / SAPScript forms for Printout

ARE -1 ARE-3 J1IB Definition:
Common print program and output type

Other Output Types : Customizing Settings:
IMG Path: LogisticsGeneralTax on Good MovementsIndia Business Transactions Excise Bonding Exports under Excise RegulationsPrintouts of ARE Documents. IMG Path: LogisticsGeneralTax on Good MovementsIndia Business Transactions Excise Bonding Exports under Excise RegulationsMake Settings for ARE-1 Procedure & IMG Path: LogisticsGeneralTax on Good MovementsIndia Business Transactions Excise Bonding Deemed ExportsMake Settings for ARE-3 Procedure
Assignment:
SAP AG 2005
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 Interest Reversal of Calculation

ARE -1/ARE 3document
Shortfalls in ARE-1s/ ARE-3s
Interest due computed by system
OVERWRITE OF EXCISE DUTY AND INTEREST COMPUTED BY SYSTEM PERMITTED
SAP AG 2005
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 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 Registers)

Interface to External Reporting Tools Printing of Sales Tax Register Printing of VAT Register Printing of TR6 Challan
Bond
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
SAP AG 2005
RG23A/C Part 2 Register RG1 Register
Excise Registers Printing

Document Printing Process
Update RG1 / Subcontracting order
Excise Stock/ Part I Register
Extract Data
Confirmation By user Yes No
Print Registers
Re-extract reqd?
End
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

WINLEN India Localisation: SAP AG 2005

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WINLEN India Localisation

This course is intended for the following audiences:

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

Duration: 5 days MM CIN : 2 days SD CIN : 2 days FI CIN

Course Overview Course Overview Contents:

This course will prepare you to:

Understand Service Tax configuration for Services and TDS thereon

After completing this course, you will be able to:

Configure the India Localisation requirements for Logistics and FI

Generate legal reports and analyse impact of legal requirements

Unit 2 India Localisation Brief

Unit 10 Sales with VAT Unit 11 Depot Operations Unit 12 Exports

Unit 6 Procurement Process

Unit 13 Statutory Registers and Form Tracking

Main Business Scenario

India Localisation Brief Contents:

India Localisation Brief : Unit Objectives

India Localisation Brief : Business Scenario

India Localisation Brief : Logistics Overview

Subcontractor Mumbai Plant Chennai Plant

Procurement of Raw Materials (Domestic)

CENVAT / Part II Register Excise Invoice Capture and Post

CVD Credit : Rs 160

Challan FACTORY Sub contractor

CENVAT / Part II Register

Excise Invoice Capture and Post

Sale from Factory

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

Debit: Rs. 160

Excise Duty Payable A/C

Fortnightly utilization CENVAT/Part II Register PLA Register

Sale from Depot

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

Debit: Rs. 160 Reduce qty by 10

Debit: Rs. 160

Excise Duty Payable A/C

Fortnightly utilization CENVAT/Part II Register PLA Register

Vendor Income tax office

File Returns Deduct Tax from Vendor Issue Certificates

Pay Tax to Government

SCIL- Organizational Elements

Mumbai Plant R1 Panvel Depot

India Localisation Brief : Unit Summary

Maintenance of Excise Master Data

Excise Setup : Unit Objectives

India Localization : An Overview

Withholding Tax/ Tax Deducted at Source (TDS)

Menu Path: SPRO Enterprise Structure Localize Sample Organizational Units

Activate Country Version India for Specific Fiscal Years

Setup of Organizational Elements

Menu Path: SPRO Logistics General Tax on Goods Movement India

Basic Settings Master Data Account Determinations

Setup of Organizational Elements

Maintain Series Groups

Select Tax Procedure

Setup of Organizational Elements

Relevance of AED, SED or CESS at Excise ID level

Permits deductible / non-deductible ED at GR SAP AG 2005

Max no. of line items in outgoing EI

Setup of Organizational Elements

Excise Inv. Selection

Setup of Organizational Elements