CIN Interview Questions

June 18, 2013

1. How does CIN determine the tax rates?
CIN determines taxes based on the chapter-id of the material. here are 2 le!els for rate
determination. "irst the s#stem $ill chec% if there is an exceptional rate a!ailable. If this is
a!ailable then that rate is pic%ed up. his rate could be for a material or material and customer
combination. If there are no exceptions then the s#stem loo%s for chapter-id of that material. he
customer $ill ha!e an excise tax status, $hich alon& $ith the plant status $ill &i!e a final excise
status. 'ased on the excise status and the chapter-id the rates are maintained.
2. Can I change the tax rates retrospectively?
(ou can chan&e the excise rates $ith an# &i!en !alidit# period. )fter ma%in& the chan&es #ou
$ill ha!e to update the sales orders if the ne$ tax rates ha!e to be considered for future
deli!eries.
3. Can I have a dierent rate or incoming and outgoing transactions or the same
material?
(ou can maintain exceptional rates for either incomin& or out&oin& based on the !olume of
exceptions data.
!. "hat do I do i I have one chapter#id or incoming and another or outgoing and
material code is the same?
)lon& $ith exceptional rate maintenance #ou can maintain the chapter-id, $hich should be used
for the out&oin& transactions. his chapter-id $ill be used onl# for cop#in& on to the document
and $ill not be used for rate determination.
$. Can I have some more additional rates?
(ou can maintain multiple excise indicators and based on that #ou can ha!e additional rates.
%. "hat will happen i I have multiple rates with overlapping validity periods or the
same chapter#id and tax indicator?
*hile pic%in& up the rate for a &i!en transaction s#stem $ill chec% for that !alidit# period $here
the !alid from is the maximum but $ith in the pricin& date and based on that pic% up the rate
applicable.
&. How does CIN do the pricing?
CIN uses +3 condition techni,ue for pricin& alon& $ith the pricin& formulae. -etails are
a!ailable in the CIN %no$led&e ban%. emplate pricin& procedures are pro!ided for !arious sales
scenarios.
'. How many tax codes do I need?
he number of tax codes $ill directl# depend on ho$ #ou $ant to account the sales tax. (ou can
ha!e C. and /. bein& determined b# the same tax code if both can be accrued into the same
account. Instead if #ou need separate account determination then #ou need separate tax codes.
)lso based on the tax concessions a!ailable #ou need to decide the !arious tax rates, $hich need
to be mapped.
(. How do I open up more than one tax classiication?
CIN comes $ith default customi0ation to open up the tax classification fields. he procedure is
as follo$s. (ou need to define as man# condition t#pes as the number of tax classification fields.
he follo$in& procedure could be used
SPRO Sales and distribution -Basic functions-Taxes Tax determination rules For Country
IN ma!e entries as follo"s #T$is is %recustomi&ed in client '''(
Se) * +T,-
Se) . -T,*
Se) / -T,.
Se) 0 -T,/
o In SPRO Sales and 1istribution Basic functions Taxes
1etermine tax rele2ancy of master records
1). How do I handle concessional excise?
T$is is ex%lained in S3P note //44556 7a2in8 o%ened u% t$e ne" tax classification fields you
mi8$t $a2e to do t$e follo"in8
Customer taxes maintain t$e %ossible 2alues for -T,/ 6 9ac$ uni)ue 2alue s$ould denote
one concession rate6 For e8 * normal excise duty

:aintain t$e -T,/ 2alue a8ainst t$e form code in -*IT -1efine Form
ty%es
:aintain t$e customer tax classification in customer master if t$e customer $as 8ot
excise exem%tion
:aintain t$e excise indicator in -*I1 for t$e customer and form code and t$is indicator
8i2es t$e final indicator
Forms database is used for determination of "$et$er t$e form $as arri2ed or not at t$e
time of billin86
T$e tax classification 2alue 8ets defaulted from t$e customer master in t$e sales order6
T$is can be c$an8ed in t$e $eader billin8 data if re)uired

11. How do I handle sales tax concessions?
o SPRO Sales and distribution -Basic functions-Taxes Tax determination rules For
Country IN ma!e entries as follo"s #T$is is %recustomi&ed in client
''' (
Se) * +T,-
Se) . -T,*
Se) / -T,.
Se) 0 -T,/
o Taxes 1etermine tax rele2ancy of master records Customer taxes maintain t$e %ossible
2alues for -T,* and -T,.6 9ac$ uni)ue 2alue s$ould denote one concession rate6 For e8 * 0;
6 :ulti%le forms could corres%ond to a sin8le rate6 -T,* could be used for CST and -T,.
for <ST6 #+T,- could be freely used by t$e customers as earlier (
o :aintain t$e tax classification in customer master as "ell as material master # Sales or8
data .(
Build access se)uences based on t$ese ne" fields to %oint to t$e correct sales tax code =ou
mi8$t $a2e to $a2e a ne" access based on re8ion of deli2erin8 %lant and re8ion of s$i% to
%arty
12. How will CIN handle Indian *+,?
S3P can $andle normal >3T re8ulations6 CIN "ill ta!e a re2ie" of t$e >3T rule "$en it is
im%lemented in India and su88est t$e best business %rocess to com%ly "it$ t$e same6
13. "hen I create a new tax code the excise lines are grey and I cannot maintain any value.
"hat should I do?
T$is is $a%%enin8 because t$e 9xcise conditions for sales are statistical in t$e tax %rocedure for
India6 So "$ile creatin8 a ne" tax code you need to o%en t$e tax %rocedure remo2e t$e statistical
fla8? maintain *''; for all excise conditions6 3fter sa2in8 t$e tax code you need to ma!e t$e
conditions statistical once a8ain6
1!. "hen I release the -illing document to accounting there is an error that the account
.ey is missing?
T$is is $a%%enin8 because one or more lines in t$e tax %rocedure $as a condition "it$ a 2alue
but is not mar!ed statistical6 =ou need to c$ec! "$et$er t$e conditions -:O1? -391? -S91 and
-C9S are mar!ed statistical in t$e tax %rocedure6 =ou cannot rectify t$e documents? "$ic$ are in
error6 T$e correction ta!es into effect only t$e future orders6
1$. "hen I release to accounting I get a message tax amount greater than tax -ase?
T$is is $a%%enin8 because t$e tax base for some tax condition is fallin8 less t$an t$e tax base
amount6 R/ does not allo" t$e tax base to fall belo" t$e tax amount6 =ou need to c$ec! "$ic$
condition is 8i2in8 t$e %roblem and based on t$at you can 2erify t$e tax %rocedure from-to
settin8s6
1%. /o I need to maintain the chapter#ids or each plant or can it -e let -lan.?
If t$e same c$a%ter-id is a%%licable for t$e material in all t$e %lants t$en you need not maintain
t$e c$a%ter-ids for all t$e %lants6 =ou can lea2e t$e %lant blan!6
1&. "hen I try printing the excise register nothing comes up?
C$ec! "$et$er you $a2e maintained t$e o%enin8 balance for t$e item in t$e corres%ondin8
re8ister #Table -@.I3CCB3< for re8ister account balances(6 Next c$ec! "$et$er you $a2e
maintained t$e sa%scri%t forms "$ic$ are used for %rintin8 t$e re8isters in t$e CIN
confi8uration6 Finally c$ec! "$et$er t$e extraction $as been done for t$e %eriod6
1'. "hen I try printing the excise invoice the list line turns red and nothing happens?
T$is is because you $a2e not maintained t$e condition record for out%ut determination6 =ou need
to maintain t$e condition record for out%ut determination at t$e sold to %arty le2el6 3lso for t$e
documents created already you can 8o into Billin8 $eader out%ut and manually enter t$e
out%ut ty%e A*io and sa2e6 <ater t$e excise in2oices can be %rinted6
1(. "hen I try to create 011 issues entry the line turns red and nothing happens?
T$is is $a%%enin8 because you are tryin8 to create an issue entry and t$e stoc! in t$e re8ister is
not enou8$ to do t$e issue6 So you need to first u%date RB* "it$ t$e recei%ts and t$en 8o into t$e
issues6
2). I have extracted the register data once -ut now I have added more transactions. Can I
extract once more?
=ou can re-extract t$e data if you $a2e added more transaction data for t$e 8i2en %eriod6
21. I am using another pac.age or printing registers. Can I download the data once
again?
To %re2ent data inconsistency in t$e t$ird %arty a%%lication CIN does not allo" you to re
do"nload t$e re8ister data once it $as already been do"nloaded6
22. "hat is the issue classiication or 011?
=ou need to classify t$e RB* entries as to "$et$er t$ey are recei%ts from manufacture or ot$er
recei%ts? clearances of 2arious ty%es so t$at t$ey can be re%orted under t$e 2arious $eadin8s as
re)uired by t$e 9xcise commissionerate6
23. How do I maintain the opening -alances or my register or the irst time?
=ou need load t$em manually at t$e initial data u%load6
2!. How do I get the opening -alance or every month?
CIN calculates t$e o%enin8 balance for re%ortin8 %ur%oses based on t$e transaction s extracted
in any %eriod6
2$. +re opening and closing -alances o reghister availa-le or me or reporting?
=ou must not %ic! u% t$e o%enin8 and closin8 balances t$at are calculated by re%ortin8 because
t$ey mi8$t 8et c$an8ed if some one does a re extract6 So t$ey need to be recom%uted
dynamically6 T$ey are not stored6
2%. Can I round the duty at the header level?
-ut# can be rounded off in CIN onl# at the item le!el. -ue to technical reasons dut# round off is
not pro!ided at the header le!el.
2&. "hen I create an excise invoice or exports what exchange rate will the system ta.e?
System %ic!s u% t$e exc$an8e rate "$ic$ is maintained in t$e CIN confi8uration data for t$e
com%any code6
2'. "ith ortnightly utili2ation why do I need a part2 entry at the time o 3xcise invoice
creation?
Cit$ fortni8$tly utili&ation you do not create an entry in t$e C9N>3T or P<3 re8isters6 Instead
CIN !ee%s a se%arate 1es%atc$ re8ister and 8enerates continuous serial numbers in t$is re8ister
t$at can be used for future reconciliation6
2(. /o I need to have -alances in my C3N*+, accounts at the time o 3xcise invoice
creation?
)t the time of excise in!oice creation the debit is bein& made into an 1xcise pa#able account. .o
#ou need not ha!e balances in the C1N2) account. (ou need to ha!e enou&h mone# at the time
of fortni&htl# utili0ation or #ou should ha!e made a debit throu&h +3 into 4/).
3). "hat are the exceptional reports possi-le?
(ou can list all the billin& documents for $hich excise in!oice is not created. (ou can &et a list of
all excise in!oices for $hich billin& document has been cancelled., (ou can also ha!e a report of
all cancelled excise in!oice for $hich the billin& document is still open.
31. Can I .now which are the -illing documents or which there is no excise invoice?
9xcise due list 8i2es you all billin8 documents for "$ic$ t$ere is no excise in2oice6
Number ran8e s!i%%in8 $a%%ens for excise in2oice6 C$at could be t$e reasonD
CIN number ran&es are defined as not buffered. (ou need to chec% if this has been chan&ed. If
s%ippin& happens ne!er reset the number ran&e.. #ou must report the problem to .)4 support
immediatel# so that the# can help #ou resol!e this.
32. "hile doing excise invoice creation I get an error message that system ailure during
loc.ing. "hat can I do?
*hile creatin& the excise in!oice, at the time of sa!in& s#stem tries to loc% the 5/ account that
is &ettin& updated $ith the ne$ balances. . probabl# some one else could be chan&in& the 5/
account data at that point of time. his is a !er# short phenomena and is meant to %eep the data
consistenc#.
33. "hile doing depot sales invoice selection4 list o invoices are not getting displayed.
"hy?
(ou need to chec% the customi0ation settin&s for /I"6or "I"6 and the in!oices of $hich period
#ou ha!e set. )lso #ou need to chec% the excise &roup, $hich is bein& used. .#stem $ill sho$
#ou onl# those excise in!oices, $hich belon& to the same excise &roup, plant, stora&e location
and batch.
3!. How do I handle the +#certiicate at depot?
)- certificates come $hen the &oods are remo!ed after pa#in& a pro!isional dut#. *hen the final
price is decided at the time of the order #ou need to pa# the balance of the dut#. here is no
facilit# at the moment to calculate the differential dut#. (ou ha!e to ma%e the pa#ment manuall#
usin& J1I. at the factor#. 6nce this is done #ou can &o bac% to the depot and capture this extra
pa#ment into #our +523-. his is recorded as a ne$ serial no $ith in the ori&inal folio so that
the +523- re&ister !alue tall#. )t the time of selection of excise in!oice for sale #ou ha!e the
option to pic% up the a-certificates for the excise in!oice and then the additional dut# &ets added
into the in!oice amount. )lso this is reflected in the +523- re&ister.
3$. Is it possi-le to add some additional duty on to the depot invoice with out + certiicate?
No #ou need an ) certificate if #ou ha!e to &et an additional dut# in +523- in!oice. )lternati!e
is to $rite customer specific routines $hich are not supported b# CIN.
3%. How do I handle the returns at depot?
If there are returns to depot, that can be captured as an# other receipt. (ou can enter the material
document no of the return receipt and the data &ets copid and #ou can cop# into +523-.
3&. How do I handle returns at actory?
here are no -3 procedures at the moment $hich is mandated b# the excise department. /e&all#
#ou can ta%e credit for all the receipts and then pa# the dut# $hen it &oes out after repair or to
another customer. (ou can 1xcise in!oice $ithout 46 route to ta%e the credit.
3'. "hen I do excise invoice creation4 the system issues a message not enough -alance.
"hy?
his does not happen an# more. here $as a need felt that $e should chec% the balance s e!en
thou&h $e can pa# the dut# 17 da#s hence.
3(. I am not a-le to save the excise invoice text?
(ou need to chec% the ob8ect t#pe for the ob8ect id J1IN. this can be done b# chec%in& the data of
the !ie$ J91I2:6'. he editor mode has to be set as ;)pplication text $ith .)21 %e# ;.
!). How can I include more text ids or the excise invoice?
(ou can use the CIN I<5 text maintenance option and add more ids $ith descriptors. "or
excise in!oice creation the ob8ect is J1II. "or depot receipts the ob8ect is J1I5 and for depot sales
it is J1IJ.
!1. "here does the excise invoice get the -usiness area rom?
1xcise in!oice does not allo$ entr# of business area. he business area in the billin& document is
automaticall# ta%en for the excise in!oice.
!2. "here does the excise invoice get the proit center rom?
1xcise in!oice pic%s up the profit center from the billin& document if it is a!ailable there. If it is
not a!ailable there then it loo%s at the plant specific material master data and pic%s up if
a!ailable.
!3. "hy do I need tax 5urisdiction?
ax 8urisdiction codes are one method b# $hich #ou can maintain tax rates $ith out ha!in&
multitude of tax codes. (ou can maintain the /. effecti!el# $ith one tax code and multiple
8urisdiction.
!!. Can I do away with 5urisdiction code?
(ou ha!e to use tax 8urisdiction code $ith the standard CIN. If #ou do not $ant to ma%e use of
that for rate determination #ou should at least ha!e one 8urisdiction at the federal le!el.
!$. "hat will the system do i I have not received the orm at the time o -illing?
he s#stem $ill first chec% in the "orm t#pe maintenance $hether the form is mar%ed as
re,uired. his means that the form has to come b# the time billin& happens. 6nce #ou recei!e the
form #ou need to enter it into the forms data base =J1I>? for the deli!er# document number. If
the form receipt is not maintained then the billin& $ill do a repricin& and char&e full tax for the
particular excise dut#.
!%. How does ortnightly utili2ation determine the accounts to -e posted?
here is no transaction t#pe for determinin& the accounts of the fortni&htl# utili0ation. he credit
account of the transaction t#pe ;-/"C ; is used as the debit account here. "or the credit side $e
pic% the debit accounts from the 5+46, 1*46 and +3C transactions. .o it is mandator# that
$hether #ou use 1*46 or not #ou should ha!e maintained the account determination for all
transaction t#es for a &i!en excise &roup.
!&. "hat is transaction type 67,89: used or?
ransaction t#pe >/@ is used for determinin& the accounts $hen a J2 is posted $ith an option
of fortni&htl# pa#ment.
!'. Can I have my own transaction types?
ransaction t#pes are used internall# b# CIN for !arious pruposes. .o #ou cannot define #our
*N transaction t#pes. )lternate account assi&nments can be done usin& sub transaction t#pes.
!(. "here does 011 get the data o pac.ed;loose material ?
Initiall# $hen #ou upload the balance in +51 #ou need to mention the material form. /ater the
s#stem assumes the same for for the same material code. If #ou need to d#namicall# chan&e this
then #ou can ma%e use of the user-exit. ) material can be mar%ed either as pac%ed or loose but
not both.
$). "hat will -atch utili2ation o modvat do?
'atch utili0ation is 8ust an interface that helps #ou to complete the utili0ation of a set of
documents in one step. his simpl# tri&&ers indi!idual utili0ation as a '-C so that the user
interaction can be minimi0ed.
$1. "hat is the num-er range used or export excise invoice?
1xport in!oices uses the number ran&e ob8ect 891iexcexp $here as the local in!oices uses the
number ran&e 891iexcloc. 1!en thou&h customers are free to use the same number series no$
there is no bar from usin& separate series.
$2. Can I create a 2ero duty excise invoice?
@ero dut# in!oices can be created both from sales as $ellas usin& excise in!oice other
mo!ements based on the business re,uirement. hese in!oices do not &enerate an accountin&
document.
$3. Is it possi-le to cancel an excise invoice with 2ero duty?
T$ere is no %roblem in cancelin8 a &ero duty excise in2oice6
C$ere does t$e billin8 document 8et t$e account for excise duty %ayableD
T$e account determination rules of R/ billin8 is used for determinin8 t$e account for t$e excise
%ostin8 line in a billin8 document6 T$e CIN customi&ation $as no role to %lay $ere6
$!. How does the stoc. transer get the assessa-le value rom?
his is &ot usin& the condition base !alue formula. "or this to happen #ou should ha!e
maintained the assessable !alue in CIN master data.
$$. How do I .now whether </ route or mm route is ollowed or stoc. transer?
=ou need to c$ec! in SPRO :aterials :ana8ement Purc$asin8 Set u% Stoc! trans%ort
order 3ssi8n deli2ery ty%eEc$ec!in86 For S1 order t$is "ill be mar!ed 3
Based on t$e route follo"ed $o" do I create an excise in2oiceD
If S1 route is follo"ed for stoc! transfer t$en you can use -*IIN to create excise in2oice6 If ::
route is used for creatin8 stoc! trans%ort order t$en you need to use -*IS for creation of 9xcise
in2oice6
$%. How to conigure stoc. transport order?
.toc% transport order is set up in .4+6- <aterials mana&ement A 4urchasin& A .et up stoc%
transport order. Bere first #ou ha!e to define the sales area and the default customer code. (ou
ha!e ato assi&n the order t#pe to the chec%in& rule. "inall# #ou need to maintain the deli!er#
t#pe for the order t#pe.
$&. I cannot create a proorma -illing document or a replenishment delivery. "hat has
gone wrong?
Normal +3 settin& does not allo$ a billin& document to be created for a deli!er# t#pe N/. (ou
need to chan&e the customi0ation settin&s of the item cate&or# t#pe N/N so that it becomes
rele!ant for billin&.
$'. "hen I do a receipt at the depot rom my actory how do I give the excise invoice
num-er?
If the excise in!oice alread# exists in the +3 s#stem then in the detail screen of +523- receipt
#ou can directl# enter the internal document number of the excise in!oice. his $ill
automaticall# allo$ the entrie challan details to be copied.
$(. <hould I receive the ull =uantity at depot or transit loss is allowed?
(ou can recei!e some &oods in the depot $hich is less than the dispatched. (ou ha!e the option
to enter the receipt ,uantit# as $ell as the challan ,uantit# at the time of +523- receipt.
%). I want to calculate the excise duties at the time o export sales. "hat should I do?
here is a calculate tax button on the utili0ation screen of 1xcise in!oice creation.. his option
$ill calculate the taxes for an export in!oice.
%1. Can I use my own layout or printing sales excise invoice?
(es. If #ou are usin& #our o$n la#out then #ou need ot maintain this in the output determination
procedure of billin& documents for the output t#pe 81i0.
%2. Can I use my own layout or printing 3xcise invoice other movements?
1xcise in!oice other mo!ements pic%s up the report la#out from the output t#pe @1:C $hich
has been maintained a&ainst the .- output determination A .ales documents. (ou can maintain
#our o$n la#outs here and then the# $ill be used for printin&.
%3. Can I use my own layouts or register printing?
(es #ou can ha!e #our o$n la#outs. (ou need to maintain the same in the CIN customi0ation
a&ainst the sap script form maintenance.
%!. Can I change the posting date at the time o ort nightly utili2ation?
(ou can enter the postin& date as per $hich #ou $ant the s#stem to do the fortni&htl# postin&.
%$. <hould I .eep the i;mm period open at the time o posting ort nightly utili2ation?
he current period alone should be open at the time of fortni&htl# utili0ation. It is also re,uired
that both << as $ell as "I periods need to be open.
%%."hen I run ortnightly utili2ation the system is showing 2ero -alance even though there
is some -alance in the 18 account?
T$e balances for utili&ation are %ic!ed u% in CIN only "$en t$e :: %eriod closin8 is done for
t$e %re2ious %eriod6 For e86 If you r %ostin8 date is 4
t$
1ec and t$e No2ember %eriod is still o%en
system "ill s$o" &ero balance6
%&.Can I change the document type or the accounting document created at the time o
excise invoice creation?
-ocument t#pe for excise in!oice utili0ation is defined $ith in CIN customi0ation at the
compan# code le!el. (ou can use #our o$n document t#pe
%'. Can I post the ort nightly utili2ation or individual excise invoices?
(ou can post the fortni&htl# utili0ation for indi!idual in!oices also. .#stem &i!e a messa&e that
the C1N2) utili0ation is alread# doen. 'ut this is confi&urable and could be made a $arnin&.
%(. Can I reverse the ortnightly utili2ation done?
No #ou cannot re!erse the postin& doen $ith fortni&htl# utili0ation. .imulate option is pro!ided
in this option for the user to chec% $hether thin&s are o% so that the chances of error are minimal
in the actual run.
&). Can I have excise rates more than 1))>?
(es #ou can ha!e excise rates hi&her than 100C since some of the tobacco items carr# hi&her
excise rates.
&1. How do I map the tax classiication to orm types?
=ou can maintain it alon8 "it$ Form ty%e definitions in CIN I:B6
Can I decide not to 8enerate folio numbers at t$e time of RB./1 creationD
=es you can !ee% t$e customi&ation o%tion at t$e 9xcise 8rou% le2el blan! and also you can lea2e
t$e user-exit o%en6
&2. "hat will happen when I cancel a 0123/ selection or sales already made?
If #ou are cancelin& a selection before postin& then the +523- re&ister the record $ill be
remo!ed. 'ut if #ou ha!e alread# done the postin& then the +523- record is mar%ed cancelled
and the balance in the ori&inal in!oice is inflated b# an e,ui!alent amount.
&3. "hy there is no transaction type or ?2I7?
ransaction t#pe is used for account determination b# CIN . his is an internal entit# for CIN and
has no rele!ance to the business process. .ince there is no account determination need for J2I>
there is no transaction t#pe.