Excise invoice

[Former Member]

1.what is Excise Invoice

2.What is the role of Excise Invoice in sd

3.what are the configuration and setting that has to be done in sd relating to Excise Invoice

4. what are the transaction codes that are used in sd relating to Excise Invoice

[Former Member]

Hi,

<b>1. Excise invoice:</b>

In INDIA the excise department decides which goods are taxable and which are not. Then the duty whether full / 50% / nil. The rates of duties. Whenever goods movement takes place and if the material is excisable then excise invoice has to be generated which shows the duty to be paid.

It is the invoice which displays alll the duty structure when a sales is made - to a customer or from one plant to another. It shows the excise duty, edu cess & S&H cess and the customer uses this to avail the modvat facility from the excise department.

<b>2.Role of excise invoice in SD:</b>

After we create the normal invoice in "VF01" the next step is to create the excise invoice using "J1IIN". This excise invoice is delivered to the customer along with the goods so that he/she will come to know about the duty paid and how much cenvat benefit he/she can avail from it.

<b>3. Configuration & settings:</b>

<b>IMG - logistics general - tax on goods movement - India - basic settings:</b>

<b>Maintain excise registration</b> - An entity in India that is entitled by law to produce any goods liable to excise. Each entity is assigned its own excise registration number. Every factory that manufactures excisable goods is required to register separately, so that a business with seven factories requires seven registrations.

<b>Maintain company code settings</b> - details related to rounding off of duties/cvd account/document type for cenvat/first month of excise year etc.

<b>Plant settings</b> - for your plant maintain details like excise registration indicator/goods receipt per excise transaction

<b>Maintain excise groups</b> - A unit within an excise registration, in India, which keeps its own set of excise records. Whereas the excise registration reports to the excise authorities, the excise group is a purely internal organizational unit. Each excise group keeps records of all transactions that have to be reported to the excise authorities. When the time comes to present these records to the authorities, the excise registration compiles the information from all of its excise groups.

<b>Maintain Series group</b> - In this IMG activity, you define the different excise series groups within your company. Series groups allow you to maintain multiple number ranges for the outgoing excise documents. Based on excise regulations and exemptions from the authorities you can maintain multiple number series for outgoing documents. But each of these series has to be declared to the excise authorities.

<b>Maintain excise duty indicator</b> - whether 100%/50%/nil duty

<b>Maintain postal address</b> - In this IMG activity, you maintain the addresses of various customs and excise organizations that your company deals with. You use these addresses in the ARE Documents functions. When you create an ARE-1 or ARE-3, you enter the address of the excise department and the customs department involved in the export process. The system then prints their names and addresses on the AREs. You can then define a default local excise department for each excise group and a default customs department for each series group.

<b>Maintain subtransaction types</b> - By default, the system records excise duties on the accounts that you have specified in the IMG activity Specify Excise Accounts per Excise Transaction. If you want to be able to record some excise duties on other accounts:

1. Create a subtransaction type in this IMG activity.

2. In the IMG activity Specify Excise Accounts per Excise Transaction, create a new entry with this subtransaction type and enter the accounts that you want to post to.

<b>Determination of excise duty:</b>

Select tax calculation procedure - In this IMG activity, you specify which tax procedure you want to use for determining excise duties and sales taxes on input materials in India.

If you use condition-based excise determination, use a copy of the tax procedure TAXINN.

If you use formula-based excise determination, use a copy of the tax procedure TAXINJ.

This tax procedure also supports condition-based excise determination, so that you can work with both concurrently.

<b>Maintain excise defaults</b> - In this IMG activity, you define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination.

<b>Activities</b>

If you use condition-based excise determination, fill out the CVD cond. field and leave all the others blank.

If you use formula-based excise determination, fill out all of the fields as follows:

Enter the tax procedure and the pricing conditions that are relevant for excise tax processing.

Specify the purchasing and sales conditions types used for basic excise duty, additional excise duty, special excise duty, and cess.

Specify the conditions in the sales order that are used for excise rates.

Specify the countervailing duty condition type used for import purchase orders.

<b>Condition based excise determination:</b>

<b>Classify condition types</b> - In this step you enter your duty condition types (excise duty + edu cess + S&H cess) alongwith the name which you can select. How many pricing procedures you have and the related condition types should match with the TAX procedure which you have selected.

<b>IMG - logistics general - tax on goods movement - India - master data:</b>

<b>Maintain chapter IDs</b> - In this IMG activity, you maintain the chapter IDs and the corresponding descriptions as per the schedules published by the Central Board of Excise and Customs.

<b>Chapter ID</b> - The number given to a material in the schedules of materials published by the government of India.

The schedule lists all materials involved in manufacturing, input materials and output materials alike. It shows how much excise duty is levied on each material.

Each material in the schedule is assigned its own identification code, called "chapter ID."

<b>IMG - logistics general - tax on goods movement - India - account determination:</b>

<b>Define GL accounts for taxes</b> - In this IMG activity, you specify which G/L accounts you will use to record which taxes.

<b>Requirements</b>

You have set up G/L accounts for each of the processing keys listed below.

<b>Activities</b>

Assign an account to each of the following posting keys. The accounts for VS1, VS2, and VS3 are used as clearing accounts during excise invoice verification.

VS1 (basic excise duty)

VS2 (additional excise duty)

VS3 (special excise duty)

VS5 (sales tax setoff)

MWS (central sales tax)

MW3 (local sales tax)

ESA (service tax)

ESE (service tax expense)

<b>Specify excise accounts per excise transaction -</b>

<b>Use</b>

In this IMG activity, you specify which excise accounts (for excise duty and CENVAT) are to be posted to for the various transaction types. Enter all the accounts that are affected by each transaction type. If you use subtransaction types, enter the accounts for each subtransaction type as well.

<b>Activities</b>

Transaction type UTLZ is used for determining accounts only while posting excise JVs and also if the payment of excise duty has to be done fortnightly.

The fortnightly CENVAT payment utility picks up the credit side accounts from the transaction types of GRPO, EWPO, and TR6C for determining the CENVAT and PLA accounts. There is no separate transaction type for fortnightly payment.

<b>Example</b>

Excise TT DC ind Account name

GRPO CR CENVAT clearing account

GRPO CR RG 23 BED account

GRPO DR CENVAT on hold account

<b>Specify G/L accounts per excise transaction -</b>

<b>Use</b>

In this IMG activity, you assign the excise and CENVAT accounts to G/L accounts.

When you come to execute the various transactions, the system determines which G/L accounts to post to by looking at the:

<b>Excise group

Company code

Chart of accounts</b>

Furthermore, if you want separate account determination settings within an excise group, you can also use sub transaction types.

<b>IMG - logistics general - tax on goods movement - India - business transactions:</b>

<b>Outgoing excise invoices:</b>

<b>Assign billing types to delivery types</b> - In this you assign your delivery type which you use in VL01N to the billing type which you use in VF01

<b>Maintain default excise groups & seroes groups</b> - In this IMG activity, you specify which excise group and series group you want to appear in these fields by default. You can make separate settings for different combinations of sales organization, distribution channel, division, and shipping point

<b>Exports under excise regulations:</b>

In this make settings for exports/deemed exports/printout for ARE documents.

<b>Utilization:</b>

<b>Utilization determination</b> - In this IMG activity, you specify which CENVAT accounts are to be debited by the Fortnight Utilization of CENVAT report: When the report calculates how much excise duty you must remit, it automatically proposes which CENVAT accounts the duty should be debited to. Here, you specify those defaults.

You can either:

Debit all the excise duty to one account

Debit the excise duty to more than one account, in which case you specify which percentage is to be debited to each account

<b>Example</b>

If you want 50% of basic excise duty (BED) to be debited to the RG 23A account and the remaining 50% to the RG 23C account, you would make the following settings:

Acct name BED perc.

RG 23A BED account 50

RG 23C BED account 50

<b>IMG - logistics general - tax on goods movement - India - Tools:</b>

<b>Number ranges</b> - maintain number ranges using the proper object &series group/excise group as the system will ask you like:

<b>J_1IEXCLOC</b> - object for local excise invoice - system will ask for series group

<b>J_1IEXCEXP</b> - object for export excise invoice - system will ask for series group

<b>J_1IARE1</b> - object for ARE number range - system will ask for series group

<b>J_1IINTPR2</b> - object for despatch serial no. - system will ask for excise group.

<b>4. Transaction codes:</b>

J1IIN - create excise invoice

J1ID - Excise rate maintenance

J1IA101 - create ARE1

J1I2 - sales tax register

J1IEX - Incoming Excise Invoices

J1IA - Excise Invoice Details

J1IJ - Excise invoice selec. at depot sale

J1IK - Selection of Excise Invoice - Commo

J1IP - Excise invoice print

J1IS - Excise invoice for other movements

Reward points if solution helps.

Regards,

Allabaqsh G. Patil

[sailaja_vadlamudi]

Hi

Excise invoice outgoing:

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

· To be sold to a customer

· 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.

Excise invoice Incoming

A business document, in India, that your vendor sends you when it delivers excisable goods. It lists the goods and states how much excise duty applies on them. Your use the excise invoice to claim back the excise that you have paid from the excise authorities.

the following are the t-codes and reports for excise invoice

J1IEX SAPLJ1IEX Incoming Excise Invoices
J1IIN SAPMJ1IIN Outgoing Excise Invoice
J1IA SAPMJ1IA Excise Invoice Details
J1IJ SAPMJ1IJ Excise invoice selec. at depot sale
J1IK SAPMJ1IK Selection of Excise Invoice - Commo
J1IP J_1IPRNE Excise invoice print
J1IW SAPMJ1IW Excise Invoice without PO
J1IS SAPMJ1IS Excise invoice for other movements

This is the standard procedure that you follow to create an outgoing excise

invoice. You create the excise invoice from a reference document: either an invoice, a pro forma excise invoice, or a billing document.

Prerequisites

You have:

Customized the rounding-off indicator for sales transactions
Specified which exchange rate type to use for export invoices
You make both of these settings in Customizing for Logistics – General, by choosing Taxes on Goods Movements ® India ® Basic Settings ® Maintain Company Codes.

Procedure

From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Sales Order ® Outgoing Excise Invoice Create/Change/Display ® …
If you want to create the excise invoice with reference to a pro forma excise invoice or commercial invoice, choose Excise Invoice ® Create.
If you want to create the excise invoice with reference to a delivery note, choose Exc. inv. for delivery ® Create.
Enter the number of the reference document.
If you do not know the document number, you can search for it by choosing Due list.

Choose .
The excise invoice screen appears. The header data is displayed at the top; the line items, which the system has copied from the reference document, are displayed at the bottom.

Enter header data as required.
To check if the utilization is done properly and the document is ready for posting, choose .
To enter texts for the excise invoice, choose .
To display the balances of the CENVAT accounts, choose Balances.
To display the utilization details, choose .
Save the excise invoice.


As per Indian tax system, Excise duty (16%) is payable by each manufacturing unit on the value of manufactured goods / on the value added. The manufacturing plant is supposed to submit an excise duty report on fortnightly / monthly basis. Various registers (RG1, RG23A, RG23C, PLA) are maintained for that purpose, which record all the transactions including movement of goods, cenvat credit available and cash balance available.

In SAP, we use transaction j1id for configuration and j1iin, j2i7, j1i5, j2i5, j2i6, j1ip for creating, extracting and printing excise invoice.

Excise Invoice is created based on Proforma Invoice or Invoice (based on configuration, it can also be Delivery). The Process Flow will be as under:
Process 1:
Sales Order (VA01 / VA02 / VA03) --> Delivery (VL10A / VL10C / VL01N / VL02N ? VL03N / VL04) --> PGI (VL02N) --> Proforma Invoice (VF01 / VF02 / VF03) --> Excise Invoice (J1IIN)
Process 2:
Sales Order (VA01 / VA02 / VA03) --> Delivery (VL10A / VL10C / VL01N / VL02N ? VL03N / VL04) --> PGI (VL02N) --> Invoice (VF01 / VF02 / VF03) --> Excise Invoice (J1IIN)

Sail