Overview
This scenario deals with Deemed Export or CT-1/CT-3 or SEZ sales that refer to sale of goods to customers
within India, who are generally holders of an export license. The materials sold are required to be used in
the production of goods meant for ultimate export. The customers can be an export-oriented unit (EOU) or
located in one of the following areas:
Sales Process
For this Deemed Export sale:
An inquiry can be the first step in the order cycle. The purpose of this activity is to create an inquiry to
represent the customers inquiry in the system.
Then a quotation can be created to determine material, their quantities, prices and payment terms that are
valid for a given sold-to customer during a specified time period. As prerequisites, it can be referred from an
existing inquiry and terms of payment need to be in place.
Then in system we need to capture the Customers License Details. This done for
For capturing Customers License details like material, quantity, value, expiry date etc.,
With post goods issue completed for the delivery and respective billing document generated, the Excise
Invoice created for the excise authorities. And subsequently print for accompanying materials that are being
sent to the csurtomers.
ARE-3/ARE-1document is created with reference to generated outgoing Excise Invoice. This is assigned to a
License captured for the customer. This document is a proof that, goods are treated as Deemed exports and
Excise duty does not need to be paid for these goods, which are mentioned in the ARE-3/ARE-1.
After the responsible official confirms that all the details are correct, we can post the ARE-3/ARE-1
document. The changes are allowed to the ARE-3/ARE-1 document only if, it is in the process pending
posting. Once posted, the ARE-3/ARE-1 cannot be changed but can only be cancelled.
Going further, we can print the ARE-3/ARE-1 documents for submitting to the customer and the excise
authorities. After ARE-3/ARE-1 Document is created and posted and also when the goods arrive at the
Customers premises, they will check them against the excise invoice and the ARE-3/ARE-1. If there are any
discrepancies in the quantity of the goods, the customer will record the actual quantity received on the ARE3/ARE-1.To record the customers confirmation of the quantity delivered, we update the ARE-3/ARE-1
document. Finally, when the countersigned ARE document arrives back at your premises from the customer,
the ARE-3/ARE-1 is further updated with the date of receipt. This closes the ARE-3/ARE-1.
Figure: Flow Chart for the Scenario: Deemed Export from supplier point of view.
Also refer SDN wiki link on ARE1: CIN Creation - Updation - Post - Cancel for process flow with
transaction code in ARE1.
Sales Document to Sales Document (Inquiry Quotation, Quotation Deemed Export Sal
b.
Sales Document to Billing Document (Deemed Export Sal Doc Type Pro Forma Invoice)
c.
Sales Order type to Delivery Type (Deemed Export Sal Doc Type Delivery Doc)
d.
Doc Type)
Configuring Pricing
a.
Account determination
Maintaining Number Range for Excise Bonding License for object J_1ILIC
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Maintaining Number Range for Local Excise Invoice for object J_1IEXCLOC
b.
c.
d. Defining Processing Modes per Transaction, this will make ARE-3/ARE-1 options active in
the ARE-3/ARE-1 screen
e.
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Maintaining an output types for ARE-3/ARE-1 Sales which will be based on plant.
12
b.
c.
in Sales data.
d.
e.
Pricing
Tax
Object
Object Name
Object Desc
Configuration
Output Type
J1ID
ZJ1D
Program
J_1IPRNTARE
Form
J_1I_ARE3
J_1I_ARE3 Printing
Further Information:
Following are few of the License Types:
1. CT1,
2. CT2,
3. 108/95 (un-projects),
4. 15/2009 (solar projects), etc.
So, when CT1 is one of the license types, for that you need to create ARE3 use TCode J_1IARE3. Then you
need to capture license by using TCode J1ILIC01.
Further, if your scenario is of exporting under bond, then you might need to create ARE1 use
TCode J_1IARE1 and also create bond by using TCode J1IBN01.