Deemed Exports – SAP SD

Pricing Procedure:

  • You can copy Domestic sales pricing procedure, only difference is that you need to make all Excise condition types as Statistical so while creating excise invoice accounting document  will not generate. Then you can make ARE – 1.
  • VAT, Add. VAT and CST payable is applicable so maintain condition types in pricing procedure similar like Domestic sales

Series Group:

  • Separate series group has to be maintained for deemed exports and number ranges should be created under J1I9 object – J_1IEXCLOC
  • While making “Maintain default Excise group and series groups” You should create with combination of “Sales Area(Sales Org – Distribution channel – Division) + Shipping point + Plant + Excise Group + Series Group.

Excise Invoice:

  • Incase of Deemed exports Excise Invoice click on “Utilization” button and make sure “Deemed” export excise invoice type is in Blue color.

Image

Process:

  • Inquiry – VA11
  • Quotation – VA21
  • Create License -J1ILIC01, Change -J1ILIC02, Display -J1ILIC03, Cancel -J1ILIC04, Close -J1ILIC05
  • Sales Order – VA01
  • Outbound Delivery – VL01N
  • Create Invoice – VF01
  • Print Invoice  (VF02) Output type
  • Create Excise Invoice – J1IIN
  • Print Excise Invoice – J1IP  (J1IB Output type or Z smartforms)
  • Create, Change, Post, Update, Cancel, Display, Reverse ARE-3 – J1IA301
  • Create, Change, Display ARE-3 – J1IA302
  • Update, Display ARE-3 – J1IA303
  • Cancel, Display ARE-3 – J1IA304
  • Deemed Export License Summary – J1ILICSUM

Tax Procedures – TAXINJ vs TAXINN

What is the difference between maintaining tax codes in TAXINJ and TAXINN

Both procedure TAXINJ and TAXINN has thin line difference where as TAXINN procedure is condition based &  TAXINJ is fomula based.If you drag down details of  TAXINJ is fomula based,where you can find Routine( selection with logic in line of condition type)  are play vital role in tax calculation.

If you selected TAXINN procedure , you can maintained tax rate with respective condition types  in FTXP during creation of tax code.But you should maintain condition record in FV11 t.code for condition types JMX1 & JMX2  are as 100%. Also you can maintain  tax rate for condition types Basic Excise Duty,Edu cess , H. Edu cess,VAT/CST in FV11 t.code in stead of maintaining tax rate in FTXP.

obq3 r

1.     TAXINJ is a tax calculation procedure for country version India and it supports formula-based excise determination. You need to configure this tax calculation procedure

Excise Conditions

  JMOD   IN: A/R BED

  JNED    IN: A/R NCCD

  JAED    IN: A/R AED

  JSED    IN: A/R SED

  JCES    IN: A/R Cess

  JECS    A/R Educational CESS

LST/CST/VAT Conditions

  JIN1      IN: A/R CST

  JIN2      IN: AR LST

  JIN4      IN: A/R CST Surcharge

   JIN5      IN: AR LST Surcharge

   JIN6      A/R VAT Payable

  JIN7      A/R CST Payable VAT

Service Tax Conditions

  JSE4    Service Tax

  JES4    ECS on Service Tax

2.      Set up the following Account Key

IMG Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Basic Settings  Check and Change Settings for Tax Processing.

  VS6    Input Tax

3.      Define the Tax Procedure according to the settings in the figures below.

You can do this in the IMG  Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Basic Settings  Check Calculation Procedure  Define Procedures. Tcode:OBBG

4.      Assign Tax Procedure to the country.

You can do this in the IMG  Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Basic Settings  Assign Country to Calculation Procedure. Tcode:OBYZ

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

Make the settings in Customizing for Logistics u2013 General, by choosing Taxes on Goods Movements  India  Basic Settings  Excise Duties Using Condition Technique and u2026  Account Determination.

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.

TAXINN Vs TAXINJ:

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Definition: condition-based excise determination

A method that the system uses of determining excise duty in India.

This method requires you to create condition records for each combination of vendor or customer and material (and possibly other conditions).When you create a purchasing document, the system calls the tax procedure assigned to India. The tax procedure finds all of the condition records that you have created for that combination of vendor and material.

When you create a sales document, the excise duties and sales taxes are determined by the pricing procedure (not the tax procedure).

Definition: formula-based excise determination

A method that the system uses of determining excise duty in India.

This method was used in the Country Version India Add-On and requires you to maintain additional data in the Excise Rate Maintenance transaction, J1ID.

When you create a purchasing document, the system calls the tax procedure assigned to India. Each of the excise duties in the tax procedure has its own condition types, and each condition type is assigned to a formula. This formula instructs the system to calculate the excise duty using the data that you have maintained in the Excise Rate Maintenance transaction.

When you create a sales document, the system determines the excise duties and sales taxes using the pricing procedure (not the tax procedure).

Pricing Procedures: 

The primary job of a pricing procedure is to define a group of condition types in a particular sequence. The pricing procedure also determines:

  • Which sub-totals appear during pricing
  • To what extent pricing can be processed manually
  • Which method the system uses to calculate percentage discounts and surcharges
  • Which requirements for a particular condition type must be fulfilled before the system takes the condition into account

Example of a Pricing Procedure:

If a sales department processes sales orders for a variety of foreign customers, the department can group the customers by country or region. A pricing procedure can then be defined for each group of customers. Each procedure can include condition types that determine, for example, country-specific taxes. In sales order processing, you can specify pricing procedures for specific customers and for sales document types. The system automatically determines which procedure to use.

Choose Basic Functions ® Pricing ® Pricing control ® Define and assign pricing procedures.

Assign Pricing Procedure to Sales Area

T Code: OVKK and assign respective sales area for different kind of pricing procedure.

PrProc

Pricing procedure follows below assignment.

Pricing procedure  condition types(1:N)  access sequence (1:N) ⇒ accesses(1:N) ⇒ condition tables(1:1) ⇒ condition fields.

During creation you can follow bottom-up sequence.

1. Create condition table with condition fields. CUSXXXXX

2. Create access sequence and maintain accesses assigned with condition table. ZAS ->CUSXXXXX

3. Create condition type and assign access sequence. ZCT->ZAS

4. Create pricing procedure and assign condition types. ZPP->ZCT

Determination part.

In order to determine pricing procedure 5 parameters needed.

Sales org + distribution channel + division + customer pricing procedure + document pricing procedure ,SO+DC+DIV+CP+DP = ZPP

and we assign pricing procedure against above 5 parameters in the configuration.

based on condition maintenance we restrict the application where you gonna maintain the condition record.

lets say you restricted it to product and successfully you maintained a condition record for testing.

now I am using this product in a transaction document(example ZAG). you called the transaction type(ZAG) and entered the customer ABC and entered some product XYZ with quantity. now the minute you enter the product and hit on enter.

System searches for relevant pricing procedure to determine. by formulating all 5 parameters from the sources based on org model it brings respective sales area data(SO+DC+DIV) and based on ABC’s customer pricing procedure(you can find it in sales area data a/block under billing area.

based on transaction type it will bring the value document pricing procedure ( ZAG’s transaction category header data).

after forumalting all 5 parameters it determines corresponding pricing procedure from the configuration.

again based on the maintained condition record it will apply the value on to the screen.

based on number of different condition types(diff calculation types) it will show different price element in the output. and all these calculation will be done by IPC.

Tax Calculation in TAXINN procedure

If you selected TAXINN procedure , you can maintained tax rate with respective condition types  in FTXP during creation of tax code.But you should maintain condition record in FV11 t.code for condition types JMX1 & JMX2  are as 100%. Also you can maintain  tax rate for condition types basic excise duty,edu cess , H. Edu cess,VAT/CST in FV11 t.code in stead of maintaining

tax rate in FTXP.

<what are the condition types need to maintained for tax coces>

You can maintain condition types  for Basic excise duty,edu cess , H. Edu cess,VAT/CST  ( both for settoff & inventoried), Service tax recoverable  etc….

<what is the difference between maintaining tax codes in TAXINJ and TAXINN>

Both procedure TAXINJ and TAXINN has thin line difference where as TAXINN procedure is condition based &  TAXINJ is fomula based.If you drag down details of  TAXINJ is fomula based,where you can find Routine( selection with logic in line of condition type)  are play vital role in tax calculation.

SAP CIN Registers.

Excise Registers: –

  • RG23A Part I: – Part I shows the quantities of the Input Materials.
  • RG23A Part II: – Part II shows the amounts of excise duty on the Materials, and how much you have transferred to the CENVAT accounts.
  • RG23C Part I: – Part I shows the quantities of the Capital Goods.
  • RG23C Part II: – Part II shows the amounts of excise duty on the Capital Goods, and how much you have transferred to the CENVAT accounts.

Note: – Previously, manufacturers were required to keep two separate registers, RG 23A and RG 23C for raw materials and capital goods respectively. This is no longer the case, but the distinction still remains in the system.

  •  PLA: – Personal Ledger Account
  • RG23D: – A record of receipts and issues of excisable materials, as kept by depots.
  • RG1: – A register of excisable finished goods kept by manufacturing plants.
  • ER 1: – The Government of India vide Notification No 26/2005-Central Excise (N.T.) prescribed the form E.R.-1 to be filled with excise authorities, by all the assessees (as defined under Central Excise Act) on a monthly basis for production and removal of goods and other relevant particulars and CENVAT credit.

Note: – Now ER 1 fulfills requirement of RT-12 i.e. Monthly Return which is to be submitted to Excise Authorities every month end.

Forms / Outputs / Reports: –

u2022 Invoice output u2013 to check whether the existing invoice format is acceptable / make arrangements for a new invoice as per excise compliance

u2022 To arrange for the formats of all excise registers and reports. To name a few

→ RG23A

→RG23C

→Monthly return for Excise

→RG1

→PLA

→RT-12

Monthly Reports: –

  • J1I7 – Query Excise invoices (Excise Transaction Details)
  • J2I6 – Print Utility (Printout of RG23A Part I & II, RG23C Part I & II, RG1, PLA, RT-12, etc…)
  • J2I9 – New Monthly Returns Report Rule 57AE (Annexure – X)
  • J2IER1 – Monthly ER1 report

Above reportsa are to be submitted on monthly basis to Govt.

CIN: General clarifications for RG1 goods

1. When I try to create RG1 issues entry the line turns red and nothing happens?

Answer: This is happening because you are trying to create an issue entry and the stock in the register is not enough to do the issue. Hence, there is a need to first update RG1 with the receipts and then go into the  issues.

2. I have extracted the register data once but now I have added more transactions. Can I extract once more?

Answer: You can re-extract the data if you have added more transaction data for  the given period.

3. I am using another package for printing registers. Can I download the data once again?

Answer: To prevent data inconsistency in the third party application CIN does  not allow you to re download the register data once it has alr eady been downloaded.

4. What is the issue classification for RG1?

Answer: You need to classify the RG1 entries as to whether they are receipts  from manufacture or other receipts, clearances of various types  so that they can be reported under the various headings as required by  the Excise commissionarate.

5. How do I maintain the opening balances for my register for the first time?

Answer: You need load them manually at the initial data upload.

6. How do I get the opening balance for every month?

Answer: CIN calculates the opening balance for reporting purposes based on the transactions extracted in any period.

7. Are opening and closing balances of register available for me for reporting?

Answer: You must not pick up the opening and closing balances that are calculated by reporting because they might get changed if someone does a re-extract. So they need to be recomputed dynamically. They are not stored.

8. Where does RG1 get the data of packed/loose material ?

Answer: Initially when you upload the balance in RG1 you need to mention the material form. Later the system assumes the same for for the same material code. If you need to dynamically change this then you can  make use of the user-exit. A material can be marked either as packed or loose but not both.

9. The column ‘In Bonded store room’ in RG1 register is not getting updated.

Answer: The column ‘In Bonded store room’ in RG1 Register is not being updated. It is present in the RG1 format as earlier it was part of the legal requirements. This format is no longer legal in nature. The purpose of RG1 Register is only to track the movement of goods to finished place from manufacturing place and hence only this
functionality is handled.

10. Assessable value is not appearing the RG1 register in transaction J1I5.
Answer: If the scenario has another pricing condition other than PR00 (for example, another price condition exists containing the balance of the PR00 and discount condition) then PR00 has to be maintained as a statistical condition so that the base value will be PR00 minus discount condition, i.e., the second price condition.

User exit for RG23A/C and RG1 registers during J1I5

Two User Exits have been provided which will provide the following:

    • Subsequent validation can be carried out on the data selected from database based on the selection critereon entered on the selection screen.
    • Data that is updated in the RG1 register can be changed as per the requirement. e.g: material form of the line item.

Two new fucntion modules need to be created in the function group J1I7.
Please follow the steps as listed Below.
For CIN 2.2B

  • Go to transacion ‘SE80’.
  • Goto function group J1I7 (Display)
  • Keep cursor on ‘Function Modules’ and press ‘Create’ button.
  • Give ‘J_1I7_USEREXIT_J1I5_VALIDATE’ as the name for the function module in the function group ‘J1I7’.
  • In the ‘Admin’ tabstrip:

Application            : M

Short Text             : Userexit for subsequent J1I5 data validation

Proc. Typ              : Normal, Start Immediately.

  • In the Tables tabstrip:

Table parameters       : T_MSEG

Ref. Structure         : MSEG

Reference type         : Blank

Optional               : Checked

  • Save and Genarate the Function Group.

 

  • Go to transacion ‘SE80’.
  • Goto function group J1I7 (Display)
  • Keep cursor on ‘Function Modules’ and press ‘Create’ button.
  • Give ‘J_1I7_USEREXIT_J1I5_MATFORM’ as the name for the function module in the function group ‘J1I7’.
  • In the ‘Admin’ tabstrip:

Application            : M

Short Text             : Userexit for J1I5 material form changes

Proc. Typ              : Normal, Start Immediately.

  • In the Changing tabstrip:

CHANGING Parameter     : S_RG1

Ref. Field/Structure   : J_1IRG1

Reference Type         : Blank

Proposal               : Blank

Optional               : Checked

Reference              : Blank

  • Save and Genarate the Function Group.

For CIN 30A

  • Go to transacion ‘SE80’.
  • Goto function group J1I7 (Display)
  • Keep cursor on ‘Function Modules’ and right click the mouse and select the ‘Create’ option.
  • Give ‘J_1I7_USEREXIT_J1I5_VALIDATE’ as the name for the function module
  • In the function group ‘J1I7’ with the short text as ‘Userexit for
  • subsequent J1I5 data validation’.
  • In the ‘Attributes’ tabstrip:

Application            : M

Proc. Typ              : Normal, Start Immediately.

  • In the ‘Tables’ tabstrip:

Parameter Name         : T_MSEG

Type Spec.             : LIKE

Reference type         : MSEG

Optional               : Checked

  • Save and generate the function module.

 

  • Go to SE80
  • Goto function group J1I7 (Display)
  • Keep cursor on ‘Function Modules’ and right click the mouse and select the ‘Create’ option.
  • Give ‘J_1I7_USEREXIT_J1I5_MATFORM’ as the name for the function module in the function group ‘J1I7’ with the short text as ‘Userexit for J1I5 material form changes’.
  • In the ‘Attributes’ tabstrip:

Application            : M

Proc. Typ              : Normal, Start Immediately.

  • In the ‘Changing’ tabstrip:

Parameter name         : S_RG1

Type Spec.             : LIKE

Reference Type         : J_1IRG1

Default Value          : Blank

Optional               : Checked

Pass Value             : Checked

  • Save and generate the function module.

Excise Transaction types

Excise Transaction types:

So Many people asks what is the excise invoice document types in SAP there is no document types for Excise & we have on ly Excise Transaction Types as below.

57CM – 57F CHALLAN COMPLETION
57FC – 57F CHALLAN CAPTURE/CHANGE
57NR – 57F NON RECEIPT
ARE1 –  EXPORT PROCESSING UNDER ARE1
ARE3 –  DEEMED EXPORTS UNDER ARE3
CAGI – CAPITAL GOODS ISSUES
CAPE – CAPITAL GOODS
CEIV – CANCELLATION OF EXCISE INVOICE
DIEX-  DIFFERENTIAL EXCISE THROUGH JV
DLFC –  GOODS REMOVAL THROUGH SALES
EWPO – EXCISE INVOICE WITHOUT PO
GRPO – EXCISE INVOICE FOR GOODS RECEIPT AGAINST PO
MRDY – REVERSAL WITHOUT REFERENCE
MRRD –  REVERSAL INCASE OF COMSUMPTION OTHER THAN PRODUCTI
MRWO –  CENVAT REVERSALS FOR WRITE OFF
OTHR – INVOICE FOR OTHER MOVEMENTS
TR6C  – PLA ACCOUNT ADJUSTMENT THROUGH
UTLZ   – MONTH PAYMENTS

SUBTRANSACTION TYPES:

The importance of subtransaction is to post duties to separate GL accounts.

Normally for a plant which is having excise registration we will maintain one set of registers and GL accounts right ?

There are some situations where we hve to maintain more than one set of registers and respective transactions has to hit different GL accounts. In this case we will assign GL accounts with combination of Excise transaction and sub transaction type. Based on this configuration system will pick the respective GL accounts.

MAINTAIN SUBTRANSACTION TYPES:

IMG > LOGISTIC GENERAL > TAX ON GOODS MOVEMENT > INDIA > BASIC SETTINGS > MAINTAIN SUBTRANSACTION TYPES
2013-06-21_172910
So by default, the system records excise duties on the accounts that we have specified in the IMG activityspecify excise accounts per excise transaction.If we want to be able to record some excise duties on other accounts:Create a subtransaction type in this IMG activity.In the IMG activity specify Excise accounts per Excise Transaction, create a new entry with this subtransaction type and enter the accounts that we want to post to.
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