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© SAP AG 9 - 1WINLEN
SAP AG 2005
Sales Process
Overview of the sales process
Sales processes
Sales from Factory - Configuration
Cancellation of Excise Invoice
Excise Invoice Printing
Fortnightly Utilization
Other features
Contents:
Notes
© SAP AG 9 - 2WINLEN
SAP AG 2005
After completing this unit, you will be able to:
Understand Excise related sales processes
Understand Sales Tax related sales processes
Run the sales processes
Sales Process : Unit Objectives
Notes
© SAP AG 9 - 3WINLEN
SAP AG 2005
Sales Process : Business Scenario
Removal of goods
Free Supplies
Excise Invoice Cancellation
Fortnightly utilisation
Notes
© SAP AG 9 - 4WINLEN
SAP AG 2005
Removal of Goods - Overview
Full Compliance across the Distribution Process Full Compliance across the Distribution Process
Removal of Goods
From Factory From Depot
Sale Transfer to Factory
Return to Vendor Transfer to Depot
Return from Customer Transfer to Subcontractor
Sale Transfer to Factory
Return to Vendor Transfer to Depot
Return from Customer Transfer to Subcontractor
Removal of goods - Factory Sale
– Generation of excise invoice at the time of removal of goods
– Printing of Excise Invoice based on Customizable Layout Set – Fortnightly utilization of CENVAT– RG23D register entries at depot during delivery
Notes
© SAP AG 9 - 5WINLEN
SAP AG 2005
CENVAT Availment & Utilization
CENVAT on holdfor Cap Goods
CENVAT Account
VENDOR EXCISEINVOICEPROCESS
GOODS RECEIPT
DESPATCH
SALES EXCISEINVOICE PROCESS
Excise DutyPayable A/C
PLA A/C
DEPOSIT FUNDSIN PLA ACCOUNT
Credit PLA Account
SELECTREGISTER Excise duty
UtilizationTransaction
ON-LINE TRANSACTIONS
FORTNIGHTLY TRANSACTIONSCredit ED Payable A/c
(Consolidated Entry)
Debit ED Payable A/c
Debit PLA A/c
Debit CENVAT A/c
Credit CENVAT A/c
Credit CENVAT on-hold A/c
CENVAT accounts are credited during the procurement cycle.
During removal of goods, excise invoice is created and printed. Also the duty liability is booked.
During fortnightly payment, the credit available in the CENVAT/PLA accounts is utilized.
Immediate utilization of CENVAT during excise invoice creation through customizing based on series group.
Notes
© SAP AG 9 - 6WINLEN
SAP AG 2005
Sales from FactorySingle Excise Invoice and Commercial Invoice
Separate Excise Invoice and Commercial Invoice
Free Supplies
Sales - Processes
Notes
© SAP AG 9 - 7WINLEN
SAP AG 2005
Sales from Factory - Process
Batch Utilization
•Excise Invoice Creation in Background•Automatic Determination of Excise and Series Group•Provision for immediate utilization of CENVAT•Posting to Profitability segment
DELIVERY
GOODS ISSUE
COMMERCIAL INVOICE PROFORMA INVOICE
EXCISE INVOICE GENERATION
AND PRINTING
EXCISE INVOICE GENERATION
AND PRINTING
COMMERCIAL INVOICE
Streamlined ExciseTax Processing
Excise invoice can be created automatically in the background during creation of billing document based on customizing for excise group
Posting of excise invoice to profitability segment if CO-PA has been set up in the system.
The profitability segment in the excise invoice is derived from the item profitability segment in the billing document
Immediate utilization of CENVAT during excise invoice creation through customizing based on series group.
Notes
© SAP AG 9 - 8WINLEN
SAP AG 2005
Sales Order
Delivery
Excise Duty posting
Proforma Invoice
Excise Invoice Printing
Commercial Invoice
Separate Commercial and Excise Invoice
Posting to Excise duty payable account
Posting to CENVAT accounts for immediate Utilization
Excise invoice can be prepared and sent along with the goods.
The document flow in such a case would be OR - > JF - > JEX - > F2 . Here OR is the sales document type, JF is the delivery type ( JF is a copy of standard delivery type LF) , JEX is the Proforma billing document type ( JEX is a copy of standard Proforma F8 ) and F2 is the invoice.
A Proforma Excise Invoice of type ‘JEX’ can be created only if Goods issue has been completed for the Delivery. The system prevents creation of multiple Proforma Excise Invoices.
The Proforma Excise Invoice serves as the basis for MODVAT utilization. This document has to be sent along with the Goods dispatched in case the commercial invoice is not yet created.
Notes
© SAP AG 9 - 9WINLEN
SAP AG 2005
Sales Order
Delivery
Excise Duty posting
Invoice
Invoice Printing
Single Commercial and Excise Invoice
Posting to Excise duty payable account
Posting to CENVAT accounts for immediate Utilization
The document flow in such a case would be OR - > LF - > F2 .
Notes
© SAP AG 9 - 10WINLEN
SAP AG 2005
Free Supplies
Can be combined with a normal order
100% discount condition added to the item pricing
Item category changed to free-of-charge
Excise posting done
In certain cases, materials are supplied free of charge while excise duty is payable on them e.g., free supplies as volume discounts. Although the material itself is free of charge, the vendor has to pay excise duty, since excise duty, by definition is paid on the manufacture of goods
Material can be sent free of charge, in such a case the excise should be calculated and paid at the time of delivery but it is not charged to the customer.
If the material is to be sent free of charge, then in the pricing procedure of the reference document against the discount condition (last condition in the pricing procedure) maintain 100%. The excise duty amount is calculated as in case of normal sales but the customer is not billed for anything because of the 100% discount. The excise utilization transaction picks up the excise value mentioned in the reference document and posts it.
A separate tax code is created for Free Supplies.
Notes
© SAP AG 9 - 11WINLEN
SAP AG 2005
Sales from Factory - Configuration
Document FlowOR LF F2
OR JF JEX F2
Define Allowed Delivery types to Billing types
Define Invoice split through data transfer formula in copy control
Delivery types can be assigned to billing types though the following menu path IMG -> Logistic General -> Tax on Goods Movement -> India -> Business Transactions -> Outgoing Excise Invoice -> Assign excise invoice billing type to delivery type
Maintain the following entries
– JF – JEX– LF – F2– LF – JEX– NL – JEX
Excise duty payable account needs to be configured in CIN related Settings.
Maintain G/L accounts against transaction type DLFC
Negative balances should be allowed for this account in FI/GL configuration
Notes
© SAP AG 9 - 12WINLEN
SAP AG 2005
Copy control formula for validation
Two possible requirements areWhen excise and commercial invoice are the same
Copy Control Formula : OR LF F2
When excise and commercial invoice are difference. (ie) Multiple excise invoice for one commercial invoice
Copy Control Formula : OR JF JEX F2
Sales from Factory - Configuration
The following formulas are provided to establish necessary controls required for generating the excise invoice. Formula Type Default Level Remarks 310 Copying
Req JF – F2 Item To ensure excise posting take place before billing
311 Copying Req
JF – JEX Header
To ensure post goods issue is done for delivery doc To ensure duplicate excise doc does not get created
350 Updaing the Official numbering
JF – F2 Item The Official Document number will be updated based on VAT / BOS.
351 Split Formula
JF – F2 & JF – JEX
Item Split items of a delivery into multiple billing / proforma documents. Split is based on Dist Channel + Div + Delivery number + Excise Registration ID + Chapter-ID + Max no of items (specified in CIN customising)
For further details on routine #350 OSS Note no. 607851 can be referred.
Notes
© SAP AG 9 - 13WINLEN
SAP AG 2005
Sales pricing (Formula based Condition Types)Pricing procedure - JFACT
Tax procedure – TAXINJ
Excise based on material and customer data
Manual over-ride for excise value
Sales tax rate from the tax code
VAT , CST - LST determination based on tax classification
Sales from Factory - Configuration
TAXINJ procedure is attached to the country IN and a formula 352 in the calculated call of TAXINJ looks up CIN master tables and calculates the excise duty
No jurisdiction codes are assigned to Tax Procedure TAXINJ
JFACT pricing procedure has a condition UTXJ for which the access JIND has been delivered by CIN. The condition category of UTXJ is 1.
In JFACT pricing procedure all other tax conditions have conditions category as ‘D’.
The tax code relevant for the Sales order is picked up from the condition record of UTXJ
The tax code for VAT/LST/CST should be created individually.
The tax rate will be brought in Sales order through the Tax code determined in UTXJ condition type.
The Tax code will be determined based on the Plant Region / Customer Region and Tax Classification of the Material and Customer. Please note that the Access table 368 is the standard access table which has all these fields. The Access Sequence JIND used for the UTXJ condition type must have the access table 368.
Maintain Prices in
–Sales and Distribution – Master Data – Pricing – Prices –Material Price – Maintain PR00 price–Others – Maintain JEX2, JEXA, JEXS, JCED, JECX–Others – Maintain UTXJ
Notes
© SAP AG 9 - 14WINLEN
SAP AG 2005
Sales pricing (Conditions record based Excise Condition Types)Pricing procedure - JINFAC
Tax procedure – TAXINN
Excise based on condition technique only
Excise based on material and customer data
Chapter Id needs to be maintained in IMG
Sales from Factory - Configuration
As of release R/3 Enterprise, TAXINN procedure can also be used for country IN
No jurisdiction codes are assigned to Tax Procedure TAXINN
During Pricing, Excise & Sales Tax are determined based on only condition technique
JINFAC pricing procedure has excise condition types with access sequences, so that the condition records for calculating excise can be created for these conditions in SD through VK11.
The chapter-ids will have to be maintained in the Customization option – IMG -> Logistics General -> Tax on Goods movements -> India -> master data –> Maintain Chapter Ids.
Notes
© SAP AG 9 - 15WINLEN
SAP AG 2005
Sales pricing (Conditions record based Excise Conditions)
Pricing procedure - JINFAC
Tax procedure – TAXINN
Manual over-ride for excise value
No excise indicator required for customer
Sales from Factory - Configuration
Maintain the Chapter ids for the material in the additional tab for CIN related data in Foreign trade import as well as Foreign trade export tab in material master maintenance.
Customer add on data for CIN also need to be maintained in the Customer master, however, customer excise indicator can be ignored now as all the conditions are based on condition technique and not on formulae for calculating excise
For each element of Excise there are three conditions – one percentage condition, one quantity based condition and one total condition which give the total duty as the sum of the other two.
For example:
– Basic Excise duty percentage is mapped to condition – JEXP– Basic Excise duty quantity is mapped to condition – JEXQ– JEXT gives the sum of JEXP and JEXQ to give the total excise duty
Similarly conditions for Additional Excise, Special Excise and Cess need to be maintained.
All these conditions are ‘Discount and Surcharge’ conditions and are posted using the Accounting key EXD
All excise conditions are determined using the access JEXC
Notes
© SAP AG 9 - 16WINLEN
SAP AG 2005
Sales pricing (Conditions record based Excise Conditions)
Pricing procedure - JINFAC
Tax procedure – TAXINN
Sales tax rate from the tax code
CST - LST determination based on tax classification
Sales from Factory - Configuration
Since the Tax rates are determined through the Condition record the tax code will not have any rates. Even if you put the rates, the rate will disappear once you save the Tax code.
You may create only one tax code SD and put it in the Condition Record.
Sales Tax conditions are
Central Sales Tax – JCST and JCSRLocal Sales Tax – JLST and JLSRVAT Condition – JIVPCST in VAT Regime - JIVC
All these are tax conditions are posted with the account key MWS or MW3
The Account key for these conditions should be created both in SD and FI. The condition types will be non statistical condition in SD Pricing Procedure JINFAC. The GL account assignment for the account key will be assigned in FI. When the system find the condition as Tax condition then it uses the same account key assigned in SD Pricing procedure and determine the GL account from FI account key.
The Central Sale Tax can be determined using the access JCST and Local Sales Tax can be determined using access JLST
Notes
© SAP AG 9 - 17WINLEN
SAP AG 2005
Sales pricing
Concessional Taxes
Tax Procedure TAXINJ with Pricing Procedure JINFAC
Tax Procedure TAXINN with Pricing Procedure JFACT
Sales from Factory - Configuration
Concessional taxes are calculated based on tax classification fields.
During transaction the tax classification may be changed to show the new tax status. This will result in a new tax calculation.
Since the tax rates are maintained in the Tax code and the tax codes are determined based on the Tax classification. The condition record for UTXJ should be created with the new classification with different tax code.
The Concessional taxes for TAXINN will not be working in the similar way of changing the tax classification as there is no tax code concept in the TAXINN Procedure.
Procedure TAXINJ can be used with both JFACT and JINFAC
For use of JINFAC with TAXINJ, the excise condition types present in TAXINJ should also be present in JINFAC with the zero base value
Further, the duty total condition types in JINFAC should also be changed to JEX2, JEXA, JEXS, JCED, JECX. These are Discount and Surcharge condition types
Similarly, procedure TAXINN can be used with JFACT and JINFAC
Notes
© SAP AG 9 - 18WINLEN
SAP AG 2005
Sales from Factory – Configuration
Menu Path: SPRO Logistics General Tax on Goods Movement India
Master DataMaintain Form Types
Form Types Maintenance– In this IMG activity, you can define which form types you want to record in the system. You can only
use form tracking for the form types that you enter here.
Notes
© SAP AG 9 - 19WINLEN
SAP AG 2005
Sales Order
Delivery
Excise Invoice Creation
Invoice
Invoice Cancellation
Cancellation of outgoing excise invoice
Cancellation of excise invoice made simple
Reversal of excise invoice without marking it for cancellation
Notes
© SAP AG 9 - 20WINLEN
SAP AG 2005
Excise Invoice Printing
Outbound excise invoice printing facility provided
Selection based on Excise invoice numbersExcise year Excise Invoice Date Billing document Series Group Plant
Tracking of Printed Excise Invoice facilitating reprint of Excise Invoice
To access this function, you can use transaction J1IP
Customize the output for billing documents as shown:
Sales and Distribution (SD) Basic Functions Output Control Output Determination Output Determination Using Condition Technique Maintain Output Determination for Billing Documents.
You can use output type J1I0 and the SAPscript form J_1I_EXC_INVOICE. The driving program is J_1IEXCP. The output determination has been set up for the billing document that is used as the excise invoice reference.
Maintain condition records for the output
Logistics Sales and Distribution Master Data Output Billing Document Create. This ensures that output gets copied to all the excise reference documents.
Notes
© SAP AG 9 - 21WINLEN
SAP AG 2005
Fortnightly Utilization
Facilitates payment of duty accumulated.
IncludesDisplay of pending invoices
Option for Posting date
Posting to a Business area
Selection based on a range of dates
Optionally, Selection based on a range of invoices
Option of Utilizing the Service tax Credit.
Option for Payment of Service tax from Cenvat
Facilitates Utilization strategy based on customization settings
Posting of TR6 Challan entry to PLA account
Transaction code for fortnightly utilization is J2IUN
Payment of duty accumulated .
Normal sales
For other movements
Reversals for material write-off, material non-production and other adjustments
Payment of Duties from Service tax.
Payment of Service tax from Cenvat
Consolidated debit entry is posted in the Part 2 table
Posting of TR6 Challan entry can be done to the PLA account using transaction J1IH
Notes
© SAP AG 9 - 22WINLEN
SAP AG 2005
Fortnightly Utilization
Option for Cenvat Payment from Service Tax
Option for Service tax Payment from Cenvat
Service Tax / ECS Credit Account
Service tax / ECS Payment account
While Paying the Cenvat from Service tax the Service tax / ECS on Service tax credit account should be entered manually.
While Paying Service tax from Cenvat account the Service tax / ECS on Service Tax Payable account should be entered manually.
Notes
© SAP AG 9 - 23WINLEN
SAP AG 2005
Fortnightly Utilization
The top of the screen is the duty Payable and bottom of the screen is Available balance. You may distribute the amount to various accounts.
Once you distribute all the amounts to various accounts then the duty at the top will show as Green.
Select the other duty and click on the Select Duty icon to utilize the next duty.
Once you utilize all the Duties then only the Save Icon will be active.
Notes
© SAP AG 9 - 24WINLEN
SAP AG 2005
Other Features
Excise Invoice in Background
Invoice Split
Excise Document Flow
Utilization due list
Batch Utilization
Notes
© SAP AG 9 - 25WINLEN
SAP AG 2005
Excise Invoice In Background
Excise invoice created automatically in background during creation of billing document
Feature made optional and triggered based on customization settings
Excise group and Series group automatically determined based on customization
Provision to print excise invoice immediately after automatic creation of excise invoice
This functionality facilitates the creation of the outgoing excise invoice in background at the time of creation of billing document.
After the creation of excise invoice system prompts for printing .
Effects on Customizing
IMG -> Logistic General -> Tax on Goods Movement -> India -> Basic Settings -> Maintain Excise Groups
Mark the 'Create excise invoice in background’
IMG -> Logistic General -> Tax on Goods Movement -> India -> Business Transactions -> Maintain Default Excise group - Series group determination
For export sales, maintain whether under bond, no bond, deemed exports
Optionally, Maintain sub-transaction type
Automatic determination of excise and series group
During creation of outgoing excise invoice, excise and series group along with sub-transaction type and export type can be automatically determined by maintaining appropriate customization
Notes
© SAP AG 9 - 26WINLEN
SAP AG 2005
Sales Order
Delivery
Excise Duty posting
Proforma Invoice
Excise Invoice Print
Commercial Invoice
Excise Duty posting
Proforma Invoice
Excise Invoice Print
Excise Duty posting
Proforma Invoice
Excise Invoice Print
Invoice Split
The separation of excise invoice and commercial invoice allows for multiple excise invoices (through split criteria) while invoicing the customer with a single commercial invoice.
The excise Invoice split in the Proforma excise invoice is based on split criteria like number of items in preprinted stationery or the material chapter-id. No accounting takes place at this stage. This is a template for the final Excise invoice to be sent to the customer.
Notes
© SAP AG 9 - 27WINLEN
SAP AG 2005
Delivery
Ship-to-party : 2300
Item Material Qty10 400 5
Order
Sold-to-party : 2300
Item Material Qty10 400 5
Billing
Bill-to-party : 2300
Item Material Qty10 400 5
Excise Invoice
Sold-to-party : 2300
Item Material Qty10 400 5
ã SAP AG 1999
Document flow of Excise Invoice
Order. Delivery. . Billing. . .Excise Invoice
Excise Document Flow
Displays all the preceding documents of an outgoing excise invoice.
Also displays cancelled invoices, if any.
Notes
© SAP AG 9 - 28WINLEN
SAP AG 2005
Utilization Due List
Listing of all billing documents due for utilizationprovided
Also includes ability to view,
Account balances
Total duty amount needed to utilize the displayed billing documents
Deficit, if any
Notes
© SAP AG 9 - 29WINLEN
SAP AG 2005
Batch utilization
Excise Invoices can be created in batches
Provision of additional fields in selection screen like Billing date
SD document category
Billing document category
Notes
© SAP AG 9 - 30WINLEN
SAP AG 2005
You should now be able to:
Understand Excise related sales processes
Understand Sales Tax related sales processes
Run the sales processes
Sales Process : Unit Summary