1. The document discusses excise duty configurations and settings in SAP for Indian tax procedures. It covers maintaining excise registrations, registration IDs, plant and company code settings related to excise. 2. It also discusses defining excise groups, series groups, tax calculation procedures, and defaults. Condition-based and formula-based excise determination techniques are covered. 3. Maintaining excise duty indicators, registration numbers, and other excise related data is also summarized.

1. Cin /excise invoice in sales and distribution
excise registers ETC
1.
In Indian Taxing procedure, Excise Duty plays a vital role in manufacturing cenario’s.
Excise related configuration is known as CIN configuration. CIN Configuration is a
topic in itself.
Some info on CIN Configuration (it may not appear as understandable below, but if
you check on screen, it will be understood better):
Country Version India comes with four pricing procedures as follows:
• JINFAC (Sales from manufacturing plants)
• JINEXP (Export sales)
• JINDEP (Sales from depots)
• JINSTK (Stock transfers
CIN:
IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings >
Maintain Excise Registrations
Use
In this IMG activity, you maintain the data relating to your excise registrations.
Activities
Enter each of your excise registrations, specifying a four-character code for each
Excise Registration IDs
In this activity, you maintain excise registration IDs. You create one ID for each of
your business's excise registrations.
Activities
For each excise registration in your business create a registration ID, and state:
• Which taxes the registration covers (additional excise duty, special excise duty,
and cess)Fields for any taxes that are not covered will be hidden in transactions
involving excise duty.
• The maximum number of items to be printed on each excise invoice
• Whether you are allowed partial CENVAT credits
Maintain Registration ID NUMBER, Excise code number, excise registration number
Excise Registration Number

2. A number assigned to each premises or location that has registered as a
manufacturer with the excise authorities.
Every entity with an excise registration number is required to keep its own excise
books.
ECC Number
Specifies the organization's ECC number.
Excise Registration Number
A number assigned to each premises or location that has registered as a
manufacturer with the excise authorities.
Every entity with an excise registration number is required to keep its own excise
books.
Excise range: Specifies the excise range in whose area the excise registration is
located.
Excise Division
Specifies the excise division in whose area the excise registration is located.
Excise Collectorate
The code of the excise collectorate in whose area the excise registration is located.
Indicator for confirming AED usage
Additional Excise duty Percentage. These are leviable under the additional duties of
excise act. These duties are in addition to basic excise duty and special excise duty.
Example
Additional Excise duty is leviable in case of textile products, tobacco and sugar.
Similarly for SED CESS
Number of Items in Excise Invoice
Shows the maximum number of line items that the authorities allow per excise
invoice.
Dependencies
This information is used when you create an excise invoice in Sales and Distribution
(SD) for factory sales and for other movements.
This information is used to split the transfer postings' items into multiple
subcontracting challans.

3. Excise register set description
Description of the excise registers set.
Partial CENVAT Credit
Indicates that the excise registration ID is allowed to credit only a portion of its input
excise duty to its CENVAT account.
Dependencies
When you post a goods receipt, the system splits the input excise duty on the
material into its deductible and nondeductible amounts. It posts the deductible duty
to the appropriate CENVAT account, and adds the nondeductible duty to the material
value.
This information is also shown when you post the vendor's excise invoice.
Maintain Company Code Settings
Use
In this IMG activity, you maintain the data relating to your company codes.
Document Type for CENVAT Postings
It controls, which document type the system uses when making CENVAT postings in
Financial Accounting (FI). Here ED is document type for cenvat posting.
Indicator for providing debit account overwriting
Debit Account Overwrite Indicator. X - Indicates debit accounts can be overwritten.
Use In excise journal voucher transaction. It provides the flexibility to the user to
enter the debit account of his choice depending on the nature of transaction.
Automatic balance Indicator
Excise year start month
The calendar month marking the beginning of the excise year
Use
This start month represents the month for the start of the excise invoice number
range. The month 04 is entered here indicating April of the calendar year as the start
month for excise invoices. Any change by the Excise authorities regarding start
month should be taken care of by an entry in this field and initialization.
Excise invoice selection procedure
Excise invoice selection type. To indicate the method opted by the company for
selecting the excise invoice. It can be either earliest or latest invoices that were
received.

4. Number of excise invoices to be selected
Indicates the number of excise invoices that needs to be selected in the excise
invoice selection.
Days to be considered for excise invoice selection
Number of days from document date for excise invoice selection.
Example
If the value of this field is 20 and today is 28-03-97. The excise
invoice selection will show the related invoices only for the
period 08-03-97 to 28-03-97.
Document type for TDS FI posting
Financial accounting document type for TDS posting.
Document type for FI posting on Utilisation
Financial accounting document type for TDS posting.
Indicator for item level excise duty round off
This indicator is to be used for deciding whether Item level excise duty amount
rounding off is required during procurement cycle. If marked 'X' then the excise duty
amount will be rounded off to the nearest rupee at the Purchase order level. This will
not round off the CENVAT credit to be taken. If the duty amount is less than one
rupee then no rounding is done
Rounding off of Excise duty for outgoing excise invoice
You can round off the Excise amount to be paid during an outgoing Excise invoice by
marking this indicator as 'X'. The rounding is done at the item level for each item
where the amount is greater than 1 Rupee.
Immediate Credit on Capital Goods
Instructs the system, when you verify a goods receipt for capital goods, to
immediately post half of the input excise duty to the appropriate CENVAT accounts.
The rest is posted the CENVAT on hold account, for use in the following year.
CVD Clearing Account
Specifies which G/L account the system credits when you take a CENVAT credit on
countervailing duty in the Incoming Excise Invoices transaction.
Exchange rate type
Key representing a type of exchange rate in the system.

5. Use
You enter the exchange rate type to store different exchange rates.
Example
You can use the exchange rate type to define a buying rate, selling rate, or average
rate for translating foreign currency amounts. You can use the average rate for the
currency translation, and the bank buying and selling rates for valuation of foreign
currency amounts.
Exchange rate type to be used for Export excise duty converts
When you are creating an Excise invoice for export sales then the exchange rate for
duty calculation will be picked up using this Exchange rate type.
Maintain Plant Settings
Use
In this IMG activity, you maintain excise information relating to your plants.
Plant Settings
In this activity, you maintain excise information relating to your plants.
Activities
For each plant:
• Specify whether it is a manufacturing site or a depot.
• Assign it an excise registration ID.
You can assign the same ID to more than one plant, if required.
Depot
Indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different procedures for
goods receipt and invoice generation.
Number of goods receipt per excise invoice.
Multiple GR for one excise invoice, Single credit
Multiple GR for one excise invoice, Multiple credit
Maintain Excise Groups
Use
In this IMG activity, you define your excise groups. For each excise group, you can
also control how various excise invoice transactions will work.
Excise Groups
In this activity, you define excise groups. An excise group allows you to maintain a
separate set of excise registers and excise accounts. The RG 23A, RG 23C and PLA

6. serial numbers are created for an excise group.
Recommendation
Under normal circumstances, excise authorities require every business to maintain
only one set of excise registers and one set of accounts. But through exemption from
the authorities, multiple books can be maintained.
If your company has only one set of excise registers, then you need to maintain only
one excise group.
Activities
1. Create one excise group for each set of registers that you need to keep.
1. Assign the excise groups to plants.
2. Maintain whether this Excise group is for a depot or not.
3. If you receive only one consignment for an Excise challan then you can leave GR's
per EI as blank. If you receive multiple GR's for a given Excise challan and would like
to avail multiple credit mark the GRs per EI as 'Multiple GR's for one excise invoice,
multiple credit'. Alternatively if you want to availa the credit only after all the goods
receipts have been made mark it as ' Multiple GR for one excise invoice, single
credit'.
4. If you want to automatically create Excise invoice during Sales cycle at the time of
billing the tick the indicator 'Create EI'
5. During depot sales if you do not want to do RG23D selection and posting
separately and would like to complete RG23D selection in one step mark the
indicator 'RG23D Auto post'. This will post the selected records into RG23D
automatically. You cannot cancel the selection later.
6. If the indicator 'Default GR qty' is marked system will default the Excise challan
quantity on to the Goods receipt if the Excise invoice number is given in the pop-up.
7. If the indicator 'Folio no create' is marked system will generate Folio numbers for
RG23D during receipt of excise invoice into depot.
8. 'Automatic posting' when ticked will post the Excise invoice other movements
automatically along with creation in single step.
9. 'Create Part1 for Block Stock' when marked will create a Part1 during the receipt
of material into Blocked stock .
10. 'Create Part1 for STO' when marked will create a Part1 during the receipt of
material through inter plant transfers.
11. 'Create Part1 for consumption stock' when marked will create a Part1 during the
receipt of material into consumption stock.
Excise Group
Governs which set of excise registers a business transaction will be included in.
Following is the relation between excise group, plant and registration.

7. Dependencies
In define excise groups in Customizing.
Then, in transactions involving excise duty, for example, when you post a vendor's
excise invoice, you specify which excise group you are using. This information tells
the system which G/L accounts to post the excise to.
At the end of the period, when you come to prepare your excise registers, you create
different sets for each excise group.
Indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different procedures for
goods receipt and invoice generation.
GR Per Excise Invoice
Multiple GR for one excise invoice , Multiple credit
Multiple GR for one excise invoice , Single Credit
Create Excise Invoice Automatically
Instructs the system to automatically create a Sales and Distribution (SD) excise
invoice immediately you create a commercial invoice or a pro forma invoice.
The excise invoice is created in the background.
Dependencies
If you want to make use of this function, you must also define the default plant,
excise group, and series groups in Customizing for Sales and Distribution (SD), by
choosing Excise Group - Series Group Determination.
RG23D Sales Creation and posting option
RG23D Automatic Option if selected will create Depot excise invoice by posting the
selection of excise invoices in single step.
If this is not selected then you need to separately do RG23D selection followed by
PGI and then RG23D verification and posting.
If you need automatic posting of RG23D selection then the Post Goods Issue should
have been completed before running RG23D selection.
Default excise qty in GR
If this indicator is ticked then while doing Goods Receipt using 'MB01' system will
default the excise invoice quantity on to the Goods receipt document.

8. Folio number for depo
Posting
If this indicator is marked then while creating Excise invoice for other movements
system automatically does the Verify and Post. You need not separately Post the
excise invoice
Also we can set indicator for creation of part 1 for:
Blocked stock
Stock transport order
Consignment stock
Maintain Series Groups
Use
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.
Activities
• Define excise series groups based on type of outgoing document
• Assign series group to excise registration ID
• If no financial postings are required for an Excise invoice in this seris group then
you tick the 'No utilization' indicator.
• If the CENVAT has to be paid immediately and you need not wait for the Fort
nightly payment then mark the 'Immediate Utilization' indicator.
Example
You could define two series groups, group 001 for excise invoices, and group 002 for
57 F4 documents.
No account postings for CENVAT in sales cycle
No utilization Flag
If you do not need any CENVAT utilization for an excise invoice but would like to just
generate an excise invoice then you need to mark this indicator.
IF the flag is checked then system will create an Excise invoice in the given Series
group but there will not be any account postings or Part2 postings.
Immediate Utilization of CENVAT
Specifies that when you create an excise invoice, the system immediately pays the
amount from CENVAT and creates the Part II entry. Such invoices will not be listed

9. for fortnightly utilization.
If you have both fortnightly and immediate utilization for the same excise group, the
account determination within CIN IMG should point to the ED interim account.
Account determination for immediate payment will be done exactly the same as
being done for fortnightly utilization program.
Maintain Excise Duty Indicators
Use
In this IMG activity, you maintain the excise duty indicators.
IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings >
Determination of Excise Duty >
Select Tax Calculation Procedure
Use
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.
We strongly recommend that new customers use condition-based excise
determination. Note that once you have started using a tax procedure, you cannot
switch to another one, otherwise you will not be able to display old documents.
Maintain Excise Defaults
Use
In this IMG activity, you define which tax procedure and pricing condition types are
used in calculating excise taxes using formula-based excise determination.
Activities
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.
See also

10. SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materials
Management (MM) -> Condition-Based Excise Determination and -> Formula-Based
Excise Determination.
IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings >
Determination of Excise Duty >
Condition-Based Excise Determination
Use
When you enter a purchasing document, for example, a purchase order, the R/3
System automatically calculates the applicable excise duties using the condition
technique.
Features
The standard system comes with two tax calculation procedures. TAXINN is only
supports condition-based excise determination, whereas TAXINJ supports condition-
based excise determination and formula-based excise determination. Both tax
procedures contain condition types that cover all of the excise duties and sales taxes
applicable.
Since the exact rates of excise duty can vary on a large number of factors, such as
which vendor you purchase a material from, or which chapter ID the vendor stocks
the material under, you create condition records for every sort of excise duty.
When you come to enter a purchasing document, the system applies the excise duty
at the rates you have entered in the condition records.
Activities
Customizing
for Logistics India Make the settings in Customizing Basic Excise Duties Using –
General, by choosing Taxes on Goods Movements Account Settings
Determination. Condition Technique and …
These activities include one activity where you define a tax code for condition-based
excise determination.
Master Data
Create condition records for all excise duties that apply, and enter the tax code for
condition-based excise determination in each.
Day-to-Day Activities
When you enter a purchase order or other purchasing document, enter the tax code
for condition-based excise determination in each line item. The system then
calculates the excise duties using the condition records you have created.
When the ordered materials arrive, you post the goods receipt and the excise
invoice. The system posts the excise duty to the appropriate accounts for deductible
input taxes when you enter the excise invoice.
Creating Condition Records for Excise Duty
1. In the command field, enter FV11 and choose .

11. 2. Enter the condition type that you want to create a condition record for and choose
.
The Key Combination dialog box appears.
3. Select the combination of objects that you want to create the condition record
for.
On the dialog box, Control Code means "chapter ID."
So, for example, to create a condition record for a tax that applies to a combination
of country, plant, and chapter ID, select Country/Plant/Control Code.
4. Choose .
5. Enter data as required.
In the Tax Code field, enter the dummy tax code that you have defined.
6. Save the condition record.
Formula-Based Excise Determination
Use
When you execute a business transaction involving materials that are subject to
excise duty, the system automatically calculates the duty for you.
Prerequisites
In order for the system to be able to determine which rate of excise duty to apply,
you must have maintained all the access data on the Excise Rate Maintenance
screen, which you can Master Data from the SAP Easy Access screen by choosing
Indirect Taxes Excise Rate Maintenance.
You maintain the following types of data:
• Plant master data
You assign each of your plants an excise duty indicator. You can use the same
indicator for all the plants with the same excise status from a legal point of view,
such as all those that are in an exempt zone.
See also the information about manufacturers that are only entitled to deduct a
certain portion of the duty (see Partial CENVAT Credit).
• Vendor master data
For each of your vendors with the same excise status from a legal perspective, you
define an excise duty indicator. You must also specify the vendor type – for example,
whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must also
stipulate if the vendor qualifies as a small-scale industry.
For each permutation of plant indicator and vendor indicator, you then create a final
excise duty indicator.
• Customer master data
Similarly, you assign the same excise duty indicator to each of your customers that
share the same legal excise status.
Again, for each permutation of plant indicator and customer indicator, you then
create a final excise duty indicator.

12. • Material master data
Each material is assigned a chapter ID.
• Excise tax rate
For every chapter ID and final excise duty indicator, you maintain the rate of excise
duty.
If your business only qualifies for partial CENVAT credit, you must customize your
system accordingly.
Activities
Let us consider an example to illustrate how the system determines which rate of
excise duty to apply to a material. Assume you are posting a sale of ball bearings to
a customer. The system automatically determines the rate of excise duty as follows:
1. Looks up the customer master data to see what status you have assigned the
customer.
Let's assume you've assigned the customer status 3.
2. Looks up the plant master data to see what status you have assigned the plant.
Similarly, your plant has status 2.
3. The system looks up the table under Excise Indicator for Plant and Customer to
see what the final excise duty indictor is for customer status 3 and plant status 2: It
is 7.
4. The system determines the chapter ID of the ball bearing for the plant.
Let’s assume the chapter ID at plant for the ball bearings is 1000.01.
5. Finally, the system looks up the table under Excise Tax Rate to see what rate of
duty applies to chapter ID 1000.01 under status 7.
Define Tax Code for Purchasing Documents
Use : In this IMG activity, you define a tax code for the purposes of calculating
excise duty when you enter purchasing documents.
Only carry out this activity if you use condition-based excise determination.
Activities: Create a new tax code, and set the tax code type to V (input tax). Do not
make any other settings for it.
Assign Tax Code to Company Codes
Use
In this IMG activity, assign the tax code for purchasing documents to the company
codes where it will be used.
Only carry out this activity if you use condition-based excise determination.
Classify Condition Types
Use
In this IMG activity, you specify which condition types you use for which sort of tax.
Note that this only applies to condition types that you use with the new excise
determination method.

13. The system uses this information when you create a document from another one. For
example, when you enter an incoming excise invoice from a purchase order, or when
you create an outgoing excise invoice from a sales order, the system determines the
various excise duties in the excise invoice using the information that you have
entered here.
In addition, when you create a purchasing document, the system only uses the
condition types that you enter here.
• For taxes on purchases, use the condition types contained in the tax procedure.
• For taxes on sales, use the condition types contained in the pricing procedures.
Standard settings
The standard system comes with sample settings for the tax calculation procedures
and pricing procedures.
Use these settings as a basis for your own.
IMG > Logistics - General > Tax On Goods Movement > India > Account
Determination
Define G/L Accounts for Taxes
Use
In this IMG activity, you specify which G/L accounts you will use to record which
taxes.
Requirements
You have set up G/L accounts for each of the processing keys listed below.
Activities
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)
Specify Excise Accounts per Excise Transaction
Use
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.

14. Activities
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.
Example
Excise TT DC ind Account name
GRPO CR CENVAT clearing account
GRPO CR RG 23 BED account
GRPO DR CENVAT on hld account
Specify G/L Accounts per Excise Transaction
Use
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:
• Excise group
• Company code
• Chart of accounts
Furthermore, if you want separate account determination settings within an excise
group, you can also use sub transaction types.
Requirements
You have already:
• Defined the G/L accounts
• Defined the excise groups
• Maintained the transaction accounts
Activities
For each excise group, assign the excise and CENVAT accounts to G/L accounts. For
most businesses, one set of accounts will suffice for alltransactions.
Note
You need not remit the CENVAT to the excise department immediately, so maintain
the credit account for transaction type DLFC as an excise duty interim account. This
will be set off when you remit the duty.
Config setting needed to be done in order to get the Excise Details Screen in Material
Master.
Even though this functionality is available in enterprise version, a small config step
has to be made in Screen Sequences for Material Master.

15. Following document helps you to do this configuration.
1. Logistics General Material Master Configuring the Material Go to IMG Define
Structure of Data Screen for each master Screen Sequence.
2. Select your screen sequence. Usually it would be 21. Select the same and click on
Data Screen in the left frame.
3. Once the data screens are exhibited, select data screen no. 15, ie. SSq. 21and
Scrn 15, which is “Foreign Trade: Import Data”. Select the same and click on
Subscreens in the left frame.
4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select the same.
Click on tab view subscreen and ensure that the subscreen is blank.
5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 – 0001 and instead add
SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.
6. Save the setting.
7. Create a Material Master and check whether in Screen Foreign Trade – Import,
Excise related subscreen