Hi,
Sales from Factories
This process describes how the R/3 System handles sales from factories, allowing for the creation of excise invoices, which you have to send with each delivery that is subject to excise duty. There are two scenarios, depending on whether you want to send the commercial invoice along with the delivery or at a later date.
In order for the system to be able to copy the information from document to document, you must have set up the copying control procedures in Customizing for Sales and Distribution (SD). This differs according to when you want to send the commercial invoice:
• Along with the delivery
In this case, the document flow would be OR (standard sales order type) – LF (standard delivery type) – F2 (invoice).
• At a later date
The document flow would be OR – JF (delivery type, a copy of LF) – JEX (pro forma billing document type, a copy of document type F8) – F2.
In addition, you must also have maintained the settings in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Business Transactions  Outgoing Excise Invoices  Assign Billing Types to Delivery Types.
Two sample pricing procedures are provided for this sales procedure, J1INFAC (condition-based excise determination) and JFACT (formula-based excise determination).
1. The sales clerk creates a sales order, following the standard procedure.
There are special procedures for customers in possession of exemption forms.
2. The shipping clerk creates a delivery, again, following the standard procedure.
On the initial screen, you set the appropriate delivery type (see above).
3. The warehouseman enters the goods issue.
The system only allows users to create a pro forma excise invoice if the delivery is complete, so as to prevent them from creating multiple pro forma excise invoices.
4. What you do at this stage depends on whether you want to send the commercial invoice along with the delivery or whether you want to invoice the customer later.
o If the invoice is to be shipped with delivery, the shipping clerk:
i. Creates an invoice, following the standard procedure.
ii. Creates an excise invoice from the invoice
o If the invoice is to be sent on at a later date, the shipping clerk:
i. Creates the pro forma excise invoice
The pro forma excise invoice is only required for technical purposes and is not sent to the customer. The system does not make any accounting postings at this stage.
ii. Creates an excise invoice from the pro forma excise invoice
In both these cases, the system creates an accounting document to post the excise duty to a clearing account.
Instead of creating excise invoices manually, you can also have the system create them automatically. Alternatively, you can create them in batches.
5. You ship the goods.
6. When the time comes to invoice the customer, you create the invoice, following the standard procedure.
Irrespective of the number of excise invoices that you have issued, you can combine the delivery items in a single invoice (if the standard requirements are met).
Sales from Depots
You may sell finished goods directly from the place of manufacture, as described under Sales from Factories, or you may first ship them to a separate location for storage (a depot), from where you will sell them. The second procedure is described here.
Sales from depots are handled differently from sales from factories because of excise law: Excise duty is payable when you send the goods from the factory to the depot, but it is not levied again when you sell the goods.
Sometimes when you make a final sale of goods from a depot, price escalations could have happened with retrospective effect. In such scenarios you need to pay the extra excise duty at the factory using an A Certificate. You need to register the A certificate details in the RG 23D register and the excise recovered from the customer.
You have customized:
• Stock transport processing, in Customizing for Materials Management (MM), by choosing Purchasing  Purchase Order  Set Up Stock Transport Order
• The copying control for copying stock transport order NL to excise invoice JEX
Make this setting in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Business Transactions  Outgoing Excise Invoices  Assign Billing Types to Delivery Types.
• The item category NLN (standard transport order) so that it is relevant for billing
You do this in Customizing for Sales and Distribution (SD), by choosing Sales  Sales Documents  Sales Document Item.
1. You create the sales order, following the standard procedure.
The standard pricing procedures for depot sales are J1INDEP (condition-based excise determination) and JDEPOT (formula-based excise determination).
2. You create the delivery, again, following the standard procedure.
3. You assign excise invoices to the delivery or material document.
4. You verify that you have selected the correct excise invoices and post them. Alternatively, if you have selected the wrong excise invoices, you can cancel the assignment.
5. You create the invoice, following the standard procedure.
Exports Use
Manufacturing plants are entitled not to pay any basic excise duty on export sales, as long as the goods are accompanied by an ARE document. The R/3 System handles AREs and the appropriate permit documents, such as export bonds and deemed export licenses.
The R/3 System does not handle exports to Nepal and Bhutan, which are subject to separate legislation.
Features
The R/3 System allows you to process three types of exports:
• Exports under bond
• Exports under claim for rebate
• Deemed exports
You must create an ARE document for all goods that you export under these schemes. You use the same function to process all ARE documents. For information about how to use the function in general, and which features are common to all ARE documents, see ARE Documents.
Reward if useful
Regards
Adarsh Mathur
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