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17 May 2012

AGENDA
OBJECTIVE GLOSSARY BACKGROUND CIN INTERFACE BETWEEN SAP AND CIN INDIAN LOCALISATION COVERAGE PROCESSES IN SAP WITH CIN PROCUREMENT SALES FINANCE REPORTS

17 May 2012

Country Version India

17 May 2012

OBJECTIVE

TO ENLIGHTEN THE PARTICIPANTS ON COUNTRY VERSION INDIA (CIN) AND THE VARIOUS REQUIREMENTS WHICH ARE TO BE COMPLETED UNDER THE INDIAN STATUTE.

HOW CIN INTERFACES WITH SAP SD, MM AND FI PROCESSES AND MEETS THE REPORT REQUIREMENTS .

AT THE END OF THE PRESENTATION , EACH PARTICIPANT WILL HAVE A FAIR KNOWLEDGE OF THE REQUIREMENTS AND INTERFACES OF CIN WITH SAP

17 May 2012

GLOSSARY
CIN - COUNTRY VERSION INDIA INPUT TAX -Tax that is charged by the vendor. A claim for refund of the deductible portion of input tax can be submitted to the tax authorities OUTPUT TAX -Tax levied on customers at all levels of production and trade. Output tax represents a tax liability. SERVICE TAX - Tax levied on the customer on services specified by the Government. DEPOT - Depot is a plant where the material is stored and sold. There is no manufacturing activity at the depot. The depots when registered with the excise authorities can pass on the Modvat benefits to the customer.

17 May 2012

GLOSSARY
EXCISE DUTY (BED) - A quantity-based tax which must be paid when a dutiable material is moved from a duty-free (bonded) location to a duty-paid (unbonded) location or the customer. Also known as excise tax. The excise duty is based on the quantity / Value of material moved. AED Additional Excise duty is a duty which is calculated over and above the Excise Duty payable on the material. SED Special Excise Duty is an additional duty levied on certain materials depending on the characteristics of the material. The statute specifies these materials. CHAPTER ID All materials that are required for manufacturing and subsequently those which are manufactured, are classified under the Central Excise Law into chapters. These chapters are further subdivided into headings and subheadings, which together form the chapter ID. Chapter ID 7216.10 is an example.

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GLOSSARY
CVD Countervailing duty is a levy charged on the imports of materials in lieu of excise duty. CENVAT Central Value Added Tax. The tax is levied on the difference between the output and the input value. This is also referred as MODVAT. CESS Cess is a tax imposed for a specific purpose under different acts with reference to certain goods. Cess is levied at the time of removal of goods from the factory. OCTROI A levy payable on the material to the local authorities. ASSESSABLE VALUE - Denotes the value of goods that you have manufactured in-house at the price as assessed by an authorized auditor. SETOFF A certain percentage of input tax which is refunded by the government to the manufacturer. This refund does not form part of material cost.
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GLOSSARY
INTERSTATE TRANSACTIONS - A transaction where the goods / material are traded between two different states. CONCESSIONAL TAX FORMS The Government announces tax concessions in excise and taxes on sales and purchase. This can be availed by submitting the forms prescribed by the Government. E.g C form , AR4 , CT3. TDS - Tax deducted at source ( Withholding tax) is a form of indirect taxation deducted at the beginning of the payment flow. Generally, an amount is withheld and paid over or reported to the tax authorities on behalf of (as opposed to by) the person subject to tax, the exception being self-withholding tax. If a withholding tax exemption is available, withholding tax is not withheld.

17 May 2012

GLOSSARY
REGISTERS The registers are the books prescribed having specific format under the statute e.g RG23A,RG23D. RETURNS The prescribed forms having a specified format under the statute e.g. RT12, RG1, ANNUAL RETURN FOR TDS.

17 May 2012

BACKGROUND
FIRST VERSION DEVELOPED IN 1996 IN RESPONSE TO NEEDS OF INDIAN CUSTOMERS STANDARD PRODUCT SUPPLIED BY SAP AS AN ADD-ON CONFORMS TO SAP DEVELOPMENT STANDARD (LOOK AND FEEL ETC) SUPPORTED BY SAP DEVELOPMENT LAB AT BANGALORE

ALL BUDGET 2002 CHANGES INCORPORATED

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CIN INTERFACE WITH SAP


FI SD MM HR
FI SD MM HR

SAP

ZIND

CIN

FI - INTERFACE COMPONENT INSTALL COMPONENT

ACTIVATE COMPONENT
ACTIVATE PROCESSES OPEN FI - INTERFACE
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CIN INTERFACE WITH SAP


COUNTRY VERSION INDIA INSTALLATION COPIES THE FOLLOWING

1. STANDARD INDIA TEMPLATES


2. TAX PROCEDURE (TAXINJ) 3. CONDITIONS EXCISE, TAXES ON SALES & PURCHASE, SERVICE TAX, CVD ETC 4. TABLES , FUNCTION MODULES , NO.RANGE OBJECTS, CUSTOMER EXITS 5. TAX DEPRECIATION KEYS

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INDIAN LOCALISATION COVERAGE


COVERS THE FOLLOWING CENTRAL / LOCAL SALES TAX

SALES TAX SETOFF


PURCHASE TAX CONCESSIONAL TAX FORMS

SERVICE TAX
OCTROI

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INDIAN LOCALISATION COVERAGE


BASIC / ADDITIONAL / SPECIAL EXCISE DUTY MAINTENANCE OF RATES ON VENDOR CLASS MAINTENANCE OF RATES AS PERCENTAGE & AMOUNT UTILISATION OF MODVAT FORTNIGHTLY PAYMENT CVD ( IMPORTS) SUB-CONTRACTING SUB-CONTRACTING CHALLANS

RECONCILIATION OF QUANTITIES
MAINTENANCE OF 57F4 REGISTER

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INDIAN LOCALISATION COVERAGE


MODVAT UPDATING OF PART-I REGISTER FOR QUANTITY UPDATING OF PART-II REGISTER FOR VALUE UPDATING OF RG23D REGISTER FOR DEPOT PRINTING OF EXCISE REGISTERS PART-I / PART-II REGISTERS

RG1 REGISTER
RT12 RETURN FACILITY FOR DOWNLOAD

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INDIAN LOCALISATION COVERAGE


EXTENDED WITHHOLDING TAX WITHHOLDING TAX ON DOWN PAYMENTS / INVOICES / PROVISIONS

ACCUMULATIONS
MULTIPLE TAX LINE ITEMS IN ONE INVOICE CALCULATION ALTERNATIVES (GROSS, NET, OFFSET) ROUNDING OPTIONS

PAYMENT DUE DATES BY BUSINESS PLACE


CHALLAN UPDATE AND ACCOUNT CLEARING SURCHARGE ON WITHHOLDING TAX CERTIFICATE NUMBERING FOR DIFFERENT SECTIONS / BUSINESS PLACE

CERTIFICATE PRINTING WITH CUSTOMISABLE LAYOUT


ANNUAL RETURNS FOR VARIOUS SECTIONS OF INCOME TAX ACT

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INDIAN LOCALISATION - IMG

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INDIAN LOCALISATION - IMG

In these steps the Basis team performs the installation & activation of Country Version

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IMG- ACTIVATE FI/CO INTERFACE

ADD ENTRY ZIND FI/CO COMPONENT FOR COUNTRY VERSION INDIA

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IMG- ACTIVATE CIN FOR FISCAL YEARS

ACTIVE INDICATOR

FISCAL YEAR UPTO AND INCLUDING WHICH TRANSACTION APPLIES

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IMG- ACTIVATE PROCESSES

Activate Components

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IMG- ACTIVATE PRODUCTS

ACTIVATE PRODUCT EXTENDED WITHHOLDING TAX

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IMG- GLOBAL SETTING COMPANY CODE

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

Company code CENVAT Document Type DR / CR Overwrite Indicator Automatic Balance Adjustment Indicator Beginning of Government Fiscal Year Invoice Selection Procedure LIFO , FIFO Number of Excise Invoice to be selected Days to be considered for Invoice Selection TDS Document Type Excise Utilization Document Type Excise Duty Rounding in Procurement Cycle Excise duty rounding in sales and Distribution Immediate credit for Capital Goods GL Account for CVD Exchange Rate Type Exchange Rate type for Export Changed By Changed On

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IMG- GLOBAL SETTING REGISTARTION ID

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Registration ID ECC NO Excise Registration No. Excise Range Excise Division Excise Collectorate Additional Excise Duty Indicator Special Duty Indicator Indicator CESS Indicator Number Items In Excise Invoice Register Set Description Partial CENVAT credit Indicator

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IMG- GLOBAL SETTING PLANT

Registration ID

Indicator for Factory / Depot PLANT

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IMG- GLOBAL SETTING EXCISE GROUP

Auto Posting of RG23D

Default GR Qty.
Creation of Part-1 for Block Stock

No. Of GR Per Excise INV.

Creation of Part-1 for STO Creation of Part-1 for Consumption Stock

Depot Indicator

Automatic Posting Indicator


Excise Group Registration ID Indicator for Auto Creation Of Excise Invoice

Folio Creation For RG23D

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IMG- GLOBAL SETTING SERIES GROUP

Immediate Utilization of MODVAT

Series Group For creating Number Range

No Utilization Indicator

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IMG- GLOBAL SETTING EXCISE DEFAULTS

Tax Procedure Various Excise Conditions and the Rate used as defaults

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IMG- GLOBAL SETTING EXCISE DEFAULTS

EXCISE TAX INDICATORS

This Identifies the Class


1. 2. Normal SSI

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IMG- ACCOUNTING TRANSACTION ACCOUNT

Account Names. This account names are used by the program To determine the GL account.

The sub-transaction type used for determining different account

Transaction Account. These are pre defined in the system


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IMG- ACCOUNTING ASSIGN GL ACCOUNT

Assign GL account to transaction type, sub-transaction type and account Name defined in the earlier step.

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IMG- ACCOUNTING MININIMUM BALANCE

Maintain Minimum balance for each excise group and account name. The system will check the balance before utilization.

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IMG- LOGISTICS INCOMING EXCISE INVOICE

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IMG- LOGISTICS FIELD SELECTION

In this transaction the field characteristics can be set. (Input / Required / Display / Hide) Also the field can be Highlighted.

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IMG- LOGISTICS PROCESSING MODE

The Transaction can be activated for each processing mode by setting the active flag.

Processing Mode A01 Capture A02 Change


A03 Display A04 Cancel - A05 Post

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IMG- LOGISTICS REFERENCE DOCUMENT

In This step set how the system should reference the data for each transaction and processing mode. Set the Active flag for this to work.

17 May 2012

IMG- LOGISTICS REJECTION CODES

In this Step Define the rejection code for Incoming Invoice. The Excise on the rejection can be assigned to MODVAT on hold instead of MODVAT clearing by setting the posting indicator

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IMG- LOGISTICS MOVEMENT TYPES

Populate the Movement Types and register types. This will enable the POPUP during preparation of Goods Receipt

EXCISE POPUP

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IMG- LOGISTICS SUB-CONTRACTING

In this step group the different Movement types used for sub-contracting

17 May 2012

IMG- LOGISTICS SUB-CONTRACTING

1. 2. 3. 4. 5. 6. 7.

In this step set the subContacting attributes such as :Sub-contract period Rate of Excise Duty Movement group - Issue Movement group Receipt Number Range ID How value to be determined Output Type For printing

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IMG- SALES AND DISTRIBUTION

17 May 2012

IMG- ASSIGN BILLING TYPE TO DELIVERY

In this step assign the Sales and Distribution Deliver type to the Sales and Distribution Billing type.

Ensure that one entry with blank delivery type is created with Debit note billing type assigned. This is required to pay supplementary excise duty.

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IMG- EXCISE GRP & SERIES GRP DETERMINATION

Populate various fields in the table. The entries in the tables are used to automatically determine the excise group and series group and thus the excise invoice number and type of sale.

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IMG- FORM TYPES

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IMG- FORM TYPES

In this step define the various excise form types e.g. CT3 , AR4 Etc. This form type is used in master data for determining the excise indicator.

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IMG- EXTENDED WITHHOLDING TAX

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IMG- EWT BUSINESS PLACE

Business place is an entity responsible for deduction of Tax at source and payment to the Government on due dates. The Business place is also responsible for issuing the certificate and filing of return. The business place is registered with the government. The business place is also used in reporting.

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IMG- EWT ASSIGN DOCUMENT TYPE

In this step Accounting Document type for each process

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PROCUREMENT PROCESS
REQUIREMENTS AS PER INDIAN STATUTE 1. 2. 3. 4. CALCULATION OF EXCISE DUTY BASED ON MATERIAL AND CHAPTER ID COMBINATION CALCULATION OF EXCISE BASED ON CLASS OF VENDOR CALCULATION OF INPUT TAX BASED ON INTERSTATE TRANSACTIONS CALCULATION OF INPUT TAX SETOFF ON INCOMING MATERIAL (APPLICABLE TO FACTORY).

5.
6. 7. 8.

CAPTURE OF PART I AND PART II FOR CENVAT.


SUBCONTRACTING U/S 57F4 WITHOUT PAYMENT OF EXCISE DUTY SUBCONTRACTING QUANTITY RECONCILIATION & SETTLEMENT SUBCONTRACTING PAYMENT OF EXCISE DUTY FOR NONRECEIPT OF MATERIAL AFTER SPECIFIED PERIOD.

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PROCUREMENT SCENARIOS LOCAL MATERIALS IMPORT MATERIALS

SUB CONTRACTING
CAPITAL GOODS STOCK TRANSFER
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TAX CALCULATION AT HUNTSMAN


PURCHASE
1. 2. 3. 4. TAXES ON SALES & PURCHASE ARE MAINTAINED AT FEDERAL LEVEL AND STATE LEVEL THE EXCISE CONDITION IS MAINTAINED AT 100% THE EXCISE RATE FOR THE MATERIAL IS MAINTAINED IN CIN MASTER. THE INPUT / OUTPUT TAX RATE IS MAINTAINED FOR FEDERAL TAX AND STATE LEVEL TAX CONDITIONS

5.

PERCENTAGE OF SETOFF ON INPUT TAX IS MAINTAINED IN SETOFF CONDITION

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HOW TAXES ARE DETERMINED


1. 2. THE CHAPTER ID FROM CIN TABLE FOR THE MATERIAL EXCISE RATE DERIVED FROM CHAPTER ID FROM CIN MASTER

3.
4. 5.

IN TAX PROCEDURE 100% OF THE RATE IS CALCULATED


THE TAX CODE IS ENTERED IN THE LINE ITEM AND THE JURISDICTION OF THE VENDOR IS ACCETPTED AS AN INPUT., THE CVD IS ENTERED MANUALLY IN THE PRICING SCHEMA.

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PROCUREMENT- LOCAL PURCHASE


SAP CREATE PO
PRICING Excise Rate Determination Based on Material / Chapter ID and Vendor Class Simulate & Post Cenvat. Update Part I -Qty Update Part II Val A/c. Determination CIN

GR

IV

This also updates the excise header / line item tables.


17 May 2012

PROCUREMENT- IMPORT PURCHASE


SAP CREATE PO PRICING Create Excise Invoice for CVD. This is entered manually in Pricing Update Part I - Qty CIN

GR

Simulate & Post Cenvat. Update Part II Val A/c. Determination

IV

This also updates the excise header / line item tables.


17 May 2012

PROCUREMENT SUB-CONTRACT
SAP CREATE PO TRF. POSTING Create Sub- Contract Challan w.r.t mat. doc. Print Excise Challan Update Register CIN

GR

IV
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Settle w.r.t. subcontract challan. Consumes the child material. Updates Register Reconciliation and Completion of Challan

This also updates the excise header / line item tables.

PROCUREMENT CAPITAL GOODS


SAP CREATE PO
PRICING Excise Rate Determination Based on Material / Chapter ID and Vendor Class Simulate & Post Cenvat. Update Part I -Qty Update Part II Val A/c. Determination 50% - current year 50% - next year. CIN

GR

IV
17 May 2012

This also updates the excise header / line item tables.

PROCUREMENT STOCK TRANSFER


SAP CREATE STO CIN

GR WRT DELIVERY

Capture Excise Details in RG23D Folio No. is created for each material received. Update Registers / Tables

This also updates the excise header / line item tables.


17 May 2012

SALES PROCESS
REQUIREMENTS AS PER INDIAN STATUTE 1. 2. 3. 4. CALCULATION OF EXCISE DUTY BASED ON MATERIAL AND CHAPTER ID COMBINATION CALCULATION OF EXCISE BASED ON CONCESSIONAL FORMS. CALCULATION OF OUTPUT TAX BASED ON INTERSTATE TRANSACTIONS MAINTENANCE & PRINTING OF EXCISE / ST. DETAILS OF CUSTOMERS ON INVOICES

5.
6. 7.

USAGE OF PRE-PRINTED INVOICE NO.


EXCISE INVOICE NO. SHOULD START WITH NO.1 FOR EVERY GOVERNMENT FISCAL YEARIN DEPOT. MAINTENANCE OF RG23D REGISTER IN DEPOTS

8.
9.

REPRODUCTION OF ALL EXCISE DETAILS ON DEPOT INVOICES WRT SOURCE DOCUMENT.


IDENTIFICATION OF DEPOT SALES / FIRST STAGE / SECOND STAGE DEALERS IN DEPOT

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SALES PROCESS
10. MAINTAINING SEPARATE FOLIO NO. FOR ALL INCOMING MATERIAL IN DEPOT . 11. MAINTAINING ENTRY NO. FOR EACH FOLIO FOR OUTGOING MATERIAL IN DEPOT. 12. LEVY OF SERVICE TAX ON ALL SERVICES RENDERED FROM FACTORY / DEPOT. 13. PAYMENT OF CESS ON CERTAIN CATEGORY OF MATERIALS (IF APPLICABLE).

14. MAINTAINING OF EXCISE RULES

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SALES SCENARIOS

FACTORY SALES

STOCK TRANSFER

DEPOT SALES

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TAX CALCULATION AT HUNTSMAN- SALES


1. 2. 3. 4. TAXES ON SALES & PURCHASE ARE MAINTAINED AT FEDERAL LEVEL AND STATE LEVEL THE EXCISE CONDITION IS MAINTAINED AT 100% THE EXCISE RATE FOR THE MATERIAL IS MAINTAINED IN CIN MASTER. THE INPUT / OUTPUT TAX RATE IS MAINTAINED FOR FEDERAL TAX AND STATE LEVEL TAX CONDITIONS

5.

REGIONS ARE MAINATINED AT PLANT / CUSTOMER

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TAXES ARE DETERMINED BY THE SYSTEM


1. THE CHAPTER ID FROM CIN TABLE FOR THE MATERIAL

2.
3. 4.

EXCISE RATE DERIVED FROM CHAPTER ID FROM CIN MASTER


IN TAX PROCEDURE 100% OF THE RATE IS CALCULATED THE JURISDICTION IS DETERMINED BASEED REGION MAINTAINED IN CUSTOMER MASTER AND PLANT,

5.

IF THE REGION IS SAME THEN STATE LEVEL TAXES ARE APPLICABLE ELSE FEDERAL TAXES WILL BE APPLICABLE . THIS IS DETERMINED BY THE ROUTINES IN TAX PROCEDURES.
THE TAXES ON SALES AND PURCHASES ARE DETERMINED BASED ON THE TAX CODES

6.

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SALES SCENARIOS FACTORY SALES


SAP CREATE SO CIN Excise Rate Determination Based on Material / Chapter Id / Form type. ST based on Jurisdiction and Tax Codes Excise Inv. WRT SAP Billing Doc. Selection of Rules Update No. Range Update Tables A/c Determination

DELIVERY

PGI

BILLING

This also updates the excise header / line item tables.


17 May 2012

SALES SCENARIOS STOCK TRANSFER


SAP CIN

DELIVERY W.R.T STO CREATED IN PROCUREMENT

PGI Excise Inv. WRT SAP Billing Doc. Selection of Rules Update No. Range Update Tables A/c Determination for EXCISE

BILLING

This also updates the excise header / line item tables.


17 May 2012

SALES SCENARIOS DEPOT SALES


SAP CREATE SO CIN Excise Rate Determination Based on Material / Chapter Id.

DELIVERY

PGI

BILLING

Excise Inv. WRT SAP Material Doc. Select Excise Inv. From RG23D register Selection of Rules Update No. Range Update Tables

This also updates the excise header / line item tables.


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REQUIREMENT OF FINANCE
WITHHOLDING TAX ACCUMULATION OF TAX BASE AMOUNT CERTIFICATE NUMBERING BASED ON BUSINESS PLACE AND IT SECTION ANNUAL RETURN FOR EACH SECTION PAYMENT OF WITHHODING TAX CALCULATION OF SURCHARGE CERTFICATE PRINTING SHOWING TAX RATE INCLUSIVE OF SURCHARGE PAYMENT BY DUE DATE

EXCISE DUTY FORTNIGHTLY PAYMENT

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PROCESS OF WITHHOLDING TAX


TDS ON PAYMENT REQUEST FOR DOWN PAYMENT PAYMENT OF REQUEST CALCULATE TDS TDS ON INVOICE CALCULATE TDS ADJ. FOR DOWN PAYMENT

PAYMENT OF TDS UPDATE CHALLAN PRT CERTIFICATE

ACCOUNTING

THE TABLES FOR TDS AND CERTIFICATES ARE UPDATED


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ANNUAL RETURN

PROCESS FOR PAYMENT OF EXCISE


SELECTION OF DATES

UTILIZATION

SELECTION OF REGISTERS RG23A,RG23C,PLA

PAYMENT ACCOUNTING
THE TABLES FOR EXCISE ARE UPDATED
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STATUTORY REGISTERS / REPORTS


RG23A PART I REGISTER RG23A PART II REGISTER RG23C PART I REGISTER RG23C PART II REGISTER RG1 REPORT RT12 REPORT 57F REGISTER RG23D REGISTER TDS CERTIFICATES REPORT TDS ANNUAL RETURN REPORT

ALL THE REGISTERS & REPORTS WITH CUSTOMIZABLE LAYOUT WITH DOWNLOAD FACILITY ARE AVAILABLE AS PART OF STANDARD CIN

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IMPORTANT CIN TABLES AND FUNCTION MODULES

TABLES :- All CIN tables start with J_1I and J_2I. There are 129 tables. J_1IEXCHDR J_1IEXCDTL J_2IRULES (Header data of excise doc.) (Line item data of excise doc.) (Table for maintenance of excise rules )

FUNCTION MODULES :- All CIN function modules start with J_1I . There are 151 Function Modules.

J_1I_DETERMINE_EXCISE_YEAR
J_1I2_FI_POST_MODVAT_AMOUNT J_1IEWT_CHALLAN_UPDATE

Determines the excise year


FI posting for a given modvat amt and GR Internal Challan Number Updates. EWT-India.

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FISCAL YEAR
All the statutory reports and registers have to be maintained as per the Government Fiscal Year. The Government Fiscal year starts from 1st of April and ends on 31st of March of the subsequent year.

The Income Tax Depreciation has to be calculated on the basis of the Government Fiscal Year basis.

17 May 2012

NUMBER RANGES
Number Range Objects for CIN are different from the standard SAP . There are 21 number range objects. J_1ICERT No range for Certificate Printing-EWT India.

J_1IEXCINV

Excise invoice number

The year dependent no.ranges will have to be maintained for all the objects. Number Range in case of withholding tax certificate should be maintained for a business place and withholding tax section. In case of Depots the excise invoice number range should start with 1 for every government fiscal year.

17 May 2012

HOW NUMBER RANGE ARE DEFINED IN CIN


PLANT

SERIES 01

EXCISE GROUP 01

SERIES 02

NO.RANGE ID-01

NO.RANGE ID - 01

NO.RANGE

NO.RANGE

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Thank You for Your Time !

17 May 2012