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1. How do I configure the system for partial credit functionality? (80:20 or 95:5 for Cenvatable: Inventorizable)

The relevant tax code should be configured with the required ratios for deductible and non-deductible tax components (JMO1 and JMO2 respectively).

The partial credit indicator at the excise registration ID  level should also be marked.

2. What are the settings involved to run the stock transport orders through the GRPO route?

For a receiving plant a customer has to be created.

For an issuing plant a customer and a vendor has to be created and this vendor is to be linked to this customer.

Both the customers have to be assigned to the plant in the Stock Transport Order settings.

3. How do I change the debit account that is proposed in Excise JVs?

In the company settings of CIN IMG select the indicator “Debit Account Overwrite” for the required company code.

4. What is the difference between the ‘Depot’ indicator at the plant and the same at the excise group level?

At excise group level: It indicates that for the particular combination of the excise group and the plant, the plant will function as a depot.

At plant level: Irrespective of the plant being attached to any excise group, the plant attached to all the excise groups will function as a depot.

The setting at the plant level takes precedence over that at the excise group level.

5. Can I change the non-cenvatable condition types that have been delivered?

            No.The delivered non-cenvatable condition types (e.g. JMO2 etc.) are to be used as they are.

6. Can I segregate different actions and reference documents combinations for incoming excise invoice transaction (J1IEX)?

Yes. The user has two broad options for the combinations of the actions and reference documents for the incoming excise invoice transaction.

Define processing modes per transaction:

Here the user can decide the processing modes associated with the transactions. For e.g. for J1IEX capture, post, change, display and cancel options are available, while for J1IEX_C only capture and display options are available. The user has the freedom to change the delivered settings.

Define Reference Documents Per Transaction:

Here the user can decide the combination of the processing modes with the reference documents. For e.g. for the processing mode “Capture Excise Invoice” one can choose reference documents such as PO, GR, STO etc.

The user has the freedom to change the delivered settings.

7. Where will I change the input/output attribute of a field of the incoming excise invoice transaction?

In CIN IMG, under the Incoming Excise Invoices node the user can change the attributes of certain fields.

The user cannot add any additional fields other than the delivered ones.

8. In the subcontracting attributes (CIN IMG) what is the difference between Movement Type Group Issues and Movement Type Group Receipts?

Movement types that issue material from the plant to the subcontractor are grouped under the movement type group issues. Similarly, the movement types that consume the materials when the processed goods are received into a plant are grouped under the movement type group receipts.

9. In the Subcontracting Challan, How should I maintain number ranges for each series group?

Subcontracting Challan number ranges should not overlap between series group.

For ex it should NOT be as follows:

Series Group S1  : 000010000         to 000050000

Series Group S2  : 000020000         to 000050000

10. Which are the Number range objects for which number ranges needs to be maintained?

Internal Document - J_1IINTNUM

RG23A Part1 and Part2 for all excise groups - J_1IRG23A1 & J_1IRG23A2

RG23C Part1 and Part2 for all excise groups - J_1IRG23C1 & J_1IRG23C2

PLA Part2 for all excise groups – J_1IPLA2

RG1 for all excise groups – J_1IRG1

RG23D Folio Number Generation – J_1IRG23D

Outgoing Excise Invoices against all series groups - J_1IEXCLOC & J_1IEXCEXP

Depot Excise invoice number – J_1IDEPINV

Dispatch Register Serial number – J_1IINTPR2

Subcontracting Challan against all series group – J_1I57FC

To find other number ranges go to SNRO : enter  J_1I* and press F4


11. Can I have multiple accounts for the same process?

            Yes.This is possible by using the option of sub-transaction type in association with the transaction type.

12. What will transaction type do?

CIN uses transaction type as a way of differentiating between the various excise related processes. They are:

GRPO – Goods receipt for purchase order in Plant. Also used in Depot for a PO and material document

EWPO – Excise invoice without purchase order

57FC      - Subcontracting Challan

57NR – Reversal  and Recredit for Subcontracting Challan

CAPE-  Capital Goods credit accounts

OTHR- Excise Invoice for Other Movements

DLFC- Factory Sale and Stock Transfer via SD

CEIV- Cancellation of Generated Excise Invoice

DIEX- Differential Excise Invoice Credit

MRDY- Excise Duty reversal without reference

MRRD- Excise Duty reversal if material used for non-production

MRWO- Excise Duty Reversal for Write off Cases

TR6C - PLA account adjustment through TR6 Challan

UTLZ- is used for determining the accounts when a JV is posted with an option of fortnightly payment

The Transaction type that are not used : 57CM, 57GR, CAGI, CAGR, GRTR.

13. Can I have my own transaction types?

            No. Various transaction types are used by CIN and are pre delivered.

14. Does the system determine the modvat clearing account during invoice verification?

Yes, provided the purchase order has deductible excise duty.

15. What is EWPO? When do you use it?

EWPO stands for excise invoice without purchase order. For e.g. Excise invoice of free samples are captured in the system using EWPO.

16. What is the functionality of the rejection code/reason code?

For some reasons if the user wants to withhold the availing CENVAT credit, he can do so by posting the excise invoice with a reason code. This reason code will post the credit amount to an ONHOLD account. The user can later post this ONHOLD amount to the CENVAT accounts. There is an indicator associated with the reason code in CIN IMG, which will decide the posting of the credit amount to ONHOLD.

Note: It is recommended that separate GL accounts for ON-HOLD account for transaction type GRPO and CAPE.  Account at GRPO will be used by Rejection code and the one at CAPE will be used for subsequent credit of capital goods.

During Excise Invoice cancellation, reason code can be used.

17. What does the ‘Restore Defaults’ checkbox on the Duty Values item tab strip of J1IEX do?

Restore defaults option restores the material type, duty rates, quantities, duty values for that line item to the original values that were defaulted the time when the transaction is run.

18. I always get the Item ok in J1IEX transaction as selected, how do I avoid that in case I don’t need the Item ok selected by default?

Mark the User Parameter ID ‘J4X’ with ‘X’ for a User ID.

19. Can you explain the different rows of duties on the Duty Values item tab strip of J1IEX?

Credit availed: Excise duty whose credit has been availed.

Inventorized duty: It is the excise duty for which credit has not been availed but has been added / will be added to the material cost.

Credit due: Excise duty whose credit has not been availed because the goods have not been received and entered in the RG23 Part1 register.

Credit Available: Excise duty whose credit has not been availed, but the goods have been received and entered in the RG23 Part1 register.

ST: Sales Tax for the line item.

20. What is a single step credit avail process?

The process of capturing the excise invoice and availing credit of excise duty in a single step is now possible if the excise is captured with reference to a goods receipt for a purchase order. This is possible even in the EWPO cycle.

21. When are the ‘Simulate CENVAT Credit’ and the ‘Post CENVAT’ buttons active?

These buttons will be active if the entry has been posted in the RG23 Part1 register for the GRPO cycle and there is credit available to be availed.

These buttons will always be active during the EWPO cycle.

The user should have the necessary authorization to post an excise invoice.

22. While capturing an excise invoice for EWPO (without reference to any material document), how does one enter multiple lines?

For the first line item the user needs to enter the details of the line item such as the material number, plant, chapter ID, duty rate, quantity etc. followed by pressing ENTER. To enter a new line item the user needs to press the ‘Next Item’ Button.

23. When price control 5 is set for a purchase order, how is excise duty computed?

The base value of the material is the value on the date on which the vendor's excise invoice is created.

The duty is computed on this base value.

24. How the accounts are determined when capital goods are procured?

When Cenvat credit for the capital goods are availed for the first 50%, the credit accounts are picked from GRPO transaction type and debit accounts from the CAPE.

During Subsequent credit availing, both credit and debit entries are picked from CAPE.

25. What needs to be done if the Excise Invoice quantity is not equal to GR quantity?

Excise Invoice Quantity is less than GR quantity: System will default warning message and this can be configured in CIN IMG as required. Apart from that the Part1 entry will be done only for the open quantity in the excise invoice. And the remaining will not appear in the excise registers. Since nothing can be done about it, ensure you do another GR for the difference quantity with no excise entry. Or in the case excise invoice for this difference will be dispatched by the vendor later, you can create a separate GR and just create a Part1 entry.

Excise Invoice Quantity is greater than GR quantity: Credit will be allowed only for GR quantity. To take credit for remaining check your Multiple GR for an excise invoice setting at excise group.

26. What should be my accounting entry in procurement?

For Domestic Procurement of Raw Material

During GR

Material Stock      Dr.

GR/IR clearing                      Cr.

During Excise Invoice Credit                            

Cenvat Account    Dr.

Cenvat Clearing                  Cr.

During Invoice Verification

Cenvat Clearing  Dr.

GR/IR Clearing     Dr.

Vendor Payable                   Cr.

For Domestic procurement of Capital Goods

During GR

Material Stock      Dr.

GR/IR clearing                      Cr.

During Excise Invoice Credit                            

Cenvat Account    Dr.           (50%)

Cenvat On-hold   Dr.           (50%)

Cenvat Clearing                  Cr.

During Invoice Verification

Cenvat Clearing  Dr.

GR/IR Clearing     Dr.

Vendor Payable                   Cr

Subsequent of Capital Goods

Cenvat Account    Dr.           (50%)

Cenvat On-hold                   Cr.           (50%)

For Import Procurement of Raw Material

During Customs Duty Clearing invoice

Custom Clearing Dr.

Custom Payable                  Cr.

During GR

Material Stock      Dr.

GR/IR clearing                      Cr.

During Excise Invoice Credit                            

Cenvat Account    Dr.          

Custom Clearing                 Cr.

During Invoice Verification

GR/IR Clearing     Dr.

Vendor Payable                   Cr.

For Excise Duty Credit of Raw Material without PO

Cenvat Account    Dr.          

Cenvat Clearing                  Cr.

For Excise Duty Reversal through Excise JV

Cenvat Clearing  Dr.          

Cenvat Account                    Cr.

27. What should be my accounting entry when the goods are issued through MM and excise invoice is created (J1IS & J1IV)?

During Excise Invoice Creation

Cenvat Suspense Account Dr.

Cenvat payable                                   Cr.

For TR6C Challan

PLA Account                          Dr.

PLA on hold Account                           Cr.

During Fortnightly  Utilization

Cenvat payable   Dr.

Cenvat Account                    Cr.

PLA Account                         Cr.

Note: Cenvat Suspense Account should be cleared appropriately using FI JV’s.


28. How is the recursive BoM scenario (the parent and the child material being the same) handled in subcontracting?

The movement type group for receipts should hold the 543-movement type only instead of the 101-movement type.

29. For which of the movements will I run the Quantity Reconciliation for the subcontracting Challan?

Quantity reconciliation is run for the movement types that automatically generate the consumption line, for e.g. movement 105, 101. This transaction is also run for reversals of issue movements, for e.g. 542.

30. How do I delete Challan assigned to the Goods Receipts document?

Go to transaction for Quantity Reconciliation (J1IFQ). Use Menu path Quantity Reconcile->Delete assignment

31. What should be my accounting entry in subcontracting reversal / Recredit ?

For Subcontracting Challan Reversal

Cenvat Reversal  Dr.

Cenvat Account                    Cr.

For Subcontracting Challan Recredit

Cenvat Account    Dr.

Cenvat Reversal                  Cr.