invoice

[Former Member]

Hello SAP Prof,

How to create excise invoice and what is it

[Former Member · Accepted solution]

Excise Invoice (outgoing):

A business document that is prepared when goods with excise duty are issued from the manufacturing

plant. These goods are eventually,

● Sold to the end-customer

● transfered to another plant (within/outside the company code).

This excise invoice lists the goods that have been issued and how much excise duty was paid for these

goods. The customer uses this excise invoice to claim back the excise duty that it has paid to the excise

authorities.

In R/3 there are 3 different procedures for creating excise invoice

A) Sales from Factories: This procedure is applicable when the client sells goods straight from the

factory at which they are produced. In this case excise duty is levied when the goods leave the

factory.

There 2 scenarios:

a) Excise Invoice send along with the commercial invoice.

In this case document flow (copy control) would be OR – LF - F2

b) Commercial Invoice send at later date

In this case document flow (copy control) would be OR - JF (delivery type, a copy of LF) –

JEX (Proforma billing document, copy of document type F8) - F2

B) Sales from Depot Plants: In this procedure, the excise duty is levied when the goods are transferred

from the factory to the depot and then passed to the customer when they make purchase.

Excise duty is payable when you send the goods from factory to the depot and it is not levied

again when the goods are resold. Sometimes when the final sale occurs at the depot, there might be

price escalation, in such scenarios extra excise duty will be paid at the factory using A certificate. We

need to register the A certificate details in the RG 23D register.

C) Sales (other goods movement): Apart from the 2 types of goods movements there are also other

types of goods movements for which excise invoices need to be generated.

As mentioned above excise invoice is created with reference to a delivery note or an invoice. In

R/3 excise invoice can also be created with reference to following documents.

1. Goods issue documents (for example, transfer postings)

2. Vendor excise invoices (for when you return faulty goods to a vendor, for example)

3. Factory excise invoice (for sales returns)

4. In addition, you can create an excise invoice without reference to any document at all.

Regards

AK

Reward points if helpful

[Former Member]

Hi Rajesh,

In India as per the laws of the government certain goods are categorised as excisable. You bring the raw material, process it and you then convert it into a finished good. In this way you have done value addition to the raw material for converting it into a finished good. So this material is excisable and on the assessable value of this finished good you are liable to pay excise duty of 16%. On this 16% there is Education cess - 2% and again on this 16% there is secondary & higher Secondary cess - 1%.

So whenever any excisable material leaves the factory it is mandatory that an excise invoice will accompany the material. So when you sell the fin. good to your customer you will add the escixe duty to the assessable value. Assessable value is nothing but the discounted price plus any packing & forwarding charges.

So the excise invoice will conatin the details like customer's shipping address, customer's excise details, plant excise details, ordering party address, tax structure of the supplying plant, excise invoice number.

Excise details of the plant include the ECC no., Excise registration no., Excise range, Excise division, Excise commissionerate, CST(central sales tax) no., LST (Local Sales Tax) no., Permanent account number(PAN), Excise indicator for company- full tax, or 50% tax or no tax, Service tax registration number, You maintain all this in transaction code J1ID-here select excise indicator for plant.

Then you have to create the excise group and series group. IMG-logistics general, tax on goods movement-India-basic settings-here you maintain the excise registrations, then company code settings which is done by FICO, then mainatin plant settings which is done by MM/SD,. Then maintain the series group and excise groups as per the individual plants. Actually for excise invoice to work properly the CIN settings are to be done perfectly by FICO, MM and SD.

Then you create the excise invoice in transaction code J1IIN. here the system takes the reference of the commercial invoice number which we create using transaction code VF01.

Rest everything I can send you the screen shots of CIN settings. Please give me your email address.

I hope this will clear your concept of excise invoice. Reward valuable points if solution helps.

Regards,

Allabaqsh G. Patil

[former_member197260]

Hi Patil

i have a query

my mm is setting up the ex-duty. he has good experiance in MM, but not in CIN, mainly they all struck up with Excise duty.

his current problem is, when will be the excise duty will be consider, is before invoice / after invoice. iam not a functional. i am asking on behalf of my friend.

Thanks in advance.

Jagan

[Former Member]

By useing the tcode j1iin you can create exciseinvoice is created from the Point of veiw of Excise department.. Once in a fortnight or at the end of every month you need to submit excise reports to excise department Excise invoice is created for depo sales ,factory sales

[Former Member]

A business document, in India, that you prepare when you issue excisable goods from a manufacturing plant, for example:

1. To be sold to a customer

2 To be transferred to another of your plants

The excise invoice lists the goods that you have issued and states how much excise duty applies. Your customer uses the excise invoice to claim back the excise that it has paid from the excise authorities.

it ig genearally created with reference to billing document

transaction code j1iin.

reward if it helps

kiran

[Former Member]

Hi

The T-Code is to Create Excise Invoice is J1IIN.. This document is created after creating your Commercial invoice VF01.

After Creating J1IIN Excise invoice inorder to Print this Excise Invoice you Need to Use T-Code J1IP.

Excise Document is created from the Point of veiw of Excise department.. Once in a fortnight or at the end of every month you need to submit excise reports to excise department

Hope this will help you

Regards

MBS