Sap MM Cin

The Complete Guide Material
Management Country India

Version (MM-CIN)
Applies to:
This article is applicable for SAP MM Module of SAP version SAP 4.7 till SAP ECC 6.0. For more
information, visit the Supply Chain Management homepage.
Summary
This Article Describes the MM-CIN Process. The complete solution is provided with user manual and
configuration steps to understand the Excise Process in India.
Author(s): Pardeep Malik
Company: IBM
Created on: 01 December 2011
Author Bio
Pardeep Malik is SAP Certified Consultant having 5.5 Yrs SAP Experience. He is working as a Materials
Management consultant with IBM India Pvt Ltd. His area of interests is SAP MM-CIN, WM and LE.
SAP COMMUNITY NETWORK

2011 SAP AG
SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com

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The Complete Guide Material Management Country India Version (MM-CIN)
Table of Contents
Overview of CIN ................................................................................................................................................. 3
Excise Duty: .................................................................................................................................................... 3
Types of Register in CIN ....................................................................................................................... 5
Configuration Steps .............................................................................................................................................. 6
Raw Material PO Cycle ............................................................................................................................................. 27
Reverse Excise Invoice ....................................................................................................................................... 46
Return to Vendor ................................................................................................................................................ 51
Subcontracting Cycle ................................................................................................................................................ 54
Subcontracting with Project Stock ....................................................................................................................... 69
Subcontracting of By Product.............................................................................................................................. 81
Import Cycle .............................................................................................................................................................. 91
Asset Procurement Cycle .......................................................................................................................................... 97
Registers ................................................................................................................................................................. 102
Excise Opening Balance Uploading ............................................................................................................... 112

RG23A Part II and PLA Registers updation ............................................................................................................ 114
RG23C Part II .......................................................................................................................................................... 116
RG23C On Hold ...................................................................................................................................................... 118
Related Content ............................................................................................................................................. 120

Copyright ........................................................................................................................................................ 121

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Overview of CIN
SAP- COUNTRY INDIA VERSION (CIN) is designed for use by business with operations in India.
It comprises function designed specifically for India, a localization implementation guide (IMG),
and a country template to help us customize the system according to local requirements.
Most of the country-specific functions for India relate to Financials and Logistics, and center around
taxes, including:
Excise duty and the central value-added tax system (CENVAT)
Tax deducted at source (TDS)
Sales tax
Country-Specific Functions
Country Version India comes with functions for calculating, posting, and remitting excise
duty
The system determines the excise and other taxes on your sales.
You can create outgoing excise invoices and make the appropriate accounting postings.
The system offers functions for domestic and export sales from factories and depots.
All goods movements are recorded in the appropriate excise registers as required by the
Regulations.
You can remit the excise duty using the delivered functions.
The country template for India comes with sample pricing procedures, including all taxes,
and settings for automatic account determination to the appropriate excise accounts.
Excise Duty:
Excise duty is a governmental levy on specific goods produced and consumed inside a country. In
India, Central Excise Act, 1944 governs the excise matters like defining manufacturing, factory,
excisable goods etc.
In India, excise duty is a tax on the manufacture of goods that is levied when goods leave the place
of manufacture. Manufacturers can set off the duty paid on input materials against their output duty,
a procedure known as central value-added tax (CENVAT).
Types of Excise Duty
Basic Excise Duty
This is the duty charged under section 3 of the Central Excises and Salt Act, 1944 on all excisable
goods other than salt which are produced or manufactured in India at the rates set forth in the
schedule to the Central Excise tariff Act, 1985.
Special Excise Duty
As per the Section 37 of the Finance Act, 1978 Special excise Duty was attracted on all excisable
goods on which there is a levy of Basic excise Duty under the Central Excises and Salt Act,
1944.Since then each year the relevant provisions of the Finance Act specifies that the Special
Excise Duty shall be or shall not be levied and collected during the relevant financial year.
Some commodities like pan masala, cars etc. are leviable with special duty. These items are covered
in Schedule II to Central Excise Tariff.

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Additional Excise Duty

Section 3 of the Additional duties of Excise (goods of special importance) Act, 1957 authorizes the
levy and collection in respect of the goods described in the Schedule to this Act. This is levied in
lieu of sales Tax and shared between Central and State Governments. These are levied under
different enactments like medicinal and toilet preparations, sugar etc. and other industries
development etc.
Cess
A cess has been imposed on certain products like automobiles, jute, tea, tobacco etc. A education
cess is also imposed on the excise duty from the current year.
Education CESS (ECess)
Education Cess has been imposed on all products under the Excise Act, 2005.
The process flow is as below
Purchase Order
GR / Part1
EXCISE INVOICE PART2
Capture Excise
Invoice
Transaction Code
J1IEX

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Types of Register in CIN
Register Use in CIN

1. Register RG1.
2. Register RG23A, Part 1 & II (Raw Material)
3. Register RG23C (Capital Goods)
4. Register RG23D (applicable only for 1st & 2nd Stage)
5. Personal Ledger Account (PLA).
A record of all receipts and issue related to Excise Materials is being kept in Excise Register
RG23A and RG23C by manufacturing plants.
Part 1 shows the quantities of the materials.
Part II shows the accounts of the Excise Duty on the materials and how much you have
transferred to CENVAT accounts.
Part 1 Entries:Goods Receipts Part 1 Entry in RG23A or RG23C.

Part 2 Entries:Excise Invoice Part 2 Entry.
CENVAT Document:System automatically generate after Part II Entry.
For Incoming Excise Invoice
A/c
Basic Excise Duty
CENVAT Clearing Acct

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Debit
Credit
1500.00
1500.00

5
The Configuration Steps for CIN

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EXCISE REGISTRATIONS
An entity in India that is entitled by law to produce any goods liable to excise. Each entity is
assigned its own excise registration number. Every factory that manufactures excisable goods is
required to register separately, so that a business with seven factories requires seven registrations.
ECC NO
A Tax number assigned, in India, by the department of revenue to legal and natural persons liable to
excise duty. The taxpayer is required to obtain a separate ECC number for each registered premises.
EXCISE REG. NO
The number used to identify an excise registration. When a business registers with the local excise
authorities, the authorities issue it a separate number for each registration.
EXCISE RANGE
A subdivision, in India, of an excise division. The excise ranges are responsible for issuing ECC
numbers.
EXCISE COMMISSIONERATE
An administrative body, in India, that assesses and collects excise duty. It reports to the Central
Board of Excise and Customs. There are around 90 commissionrates in India.

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AED (ADDITIONAL EXCISE DUTY)

A form of excise duty, in India, levied on a select range of products. If you click that check box then
it will specifies that the excise registration is liable to additional excise duty.
SED (SPECIAL EXCISE DUTY)
A form of excise duty in India on a limited number of goods. Specifies that the excise registration is
liable to special excise duty.
CESS
In India, a tax on the manufacture of certain products.
EI ITEMS (EXCISE INVOICE ITEMS)
Shows the maximum number of the line items that we are allowed to include in a single outgoing
excise invoice. This information affects the transactions for creating outgoing excise invoices for
factory sales and for other movements. This information is used to split the transfer postings items
into multiple subcontracting challans.
PARTIAL CENVAT CREDIT (PARTIAL CR)
Specifies that the excise registration is allowed to credit only a portion of its input excise duty to its
CENVAT account. When we 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 we post the incoming excise invoice.
Maintaining Company Code Settings for Taxes Use
DOCUMENT TYPE FOR CENVAT POSTING

A key that distinguishes the business transactions to be posted. The document type determines
where the document is stored as well as the account types to be posted. Controls which document
type the system uses when making CENVAT postings in financial accounting.
OVERWRITE DEBIT ACCOUNTS
Allows users, when entering journal vouchers, to overwrite the proposed debit accounts depending
on the nature of transaction.
SUBCONTRACTING PERIOD
The maximum number of days that the materials can be with subcontractor without us having to
reverse the excise on the CENVAT account. This information is used when we create a
subcontracting challan to determine on exactly which date the materials have to be returned by.

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Fill the G/L for

Import Provisions
EXCISE ROUND OFF

Rounds off the excise duty on each line item in a purchase order. The system rounds the duty off to
the nearest rupee. However, if the duty amount is less than one rupee then no rounding is done. It
does not round off the CENVAT credit to be taken.
IMMEDIATE CREDIT ON CAPITAL GOODS
Instructs the system, when we 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 to the CENVAT on
hold account, for use in the following year.
CVD ACCOUNT
A form of excise duty imposed on imports that are subsidized by the country in which they were
manufactured. When we post an incoming excise invoice for goods that we have purchased abroad,
the system credits the countervailing duty to this account.
EXPORT EXCHANGE
Specifies which exchange rate type the system uses to translate excise duty when we create an
outgoing excise invoice for export sales. Exchange rate type is a key representing a type of
exchange rate in the SAP system.

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Maintaining Plant Settings for Excise Information
DEPOT
Indicates that the plant is a depot. Depots are required to prepare register RG 23D, and follow
different procedures for goods receipt and invoice generation.
EXCISE REGISTRATION
Specify which excise registration this plant belongs to.

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GOODS RECEIPT PER EXCISE INVOICE

Specifies whether we are allowed to receive more than one delivery per excise invoice, and if so,
whether we can take the CENVAT credit immediately i.e. multiple credits or have to wait until the
delivery has been made in full i.e. single credit.
Maintaining Excise Groups Use

As per the legal requirement in India each Excise Group has to have one set of books. In this step
you are going to configure the Excise Groups for both the plants.

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EXCISE GROUPS
A unit within an excise registration, in India, which keeps its own set of excise records. Whereas the
excise registration reports to the excise authorities, the excise group is a purely internal
organizational unit. Each excise group keeps records of all transaction that have to be reported to
the excise authorities. When the time comes to present these records to the authorities, the excise
registration compiles the information from all of its excise groups.
COPY TO GR
Instructs the system, when we post a goods receipt using an incoming excise invoice as a reference
document, to copy the excise invoice quantity to the goods receipt.
CONSUMPTION
Automatically creates two entries in part I register RG 23A or RG 23C immediately we post a
goods receipt for direct consumption, one entry to record the goods receipt, and one for the goods
issue.
Goods for direct consumption are not added to a material stock. The system posts them directly to a
consumption account. We do not create a separate goods issue.
The goods issue material document that causes the system to create the part I entry for the goods
issue. This function overcomes that problem. When we enter a goods receipt for direct
consumption, the system automatically creates two parts I entries from the goods receipt document.
EXCISE INVOICE CAPTURE
Enable us to capture incoming excise invoices when we enter goods receipt in the standard goods
movement transaction (MIGO) .This applies to manufacturing plants and depots alike.
We enter goods receipt details and the excise invoice information at the time of GR. When we save
the goods movement, the system automatically saves the excise invoice, to be posted later using the
incoming excise invoices transaction.
RG 23D SELECTION IN MIGO
Enable us to create outgoing excise invoices in manufacturing plants using MIGO when they enter a
goods issue in the standard goods movement transaction.
It also enables us in depots to select the appropriate RG 23D entries when they enter a goods issue.
UPDATE RG1 AT MIGO
Creates an entry in register RG 1 immediately we create an outgoing excise invoice in the standard
goods movement transaction, MIGO, if the goods in the excise invoice are finished goods.
Otherwise the RG 1 entry is not created until we execute the register update program.
RG 1 is used for the finished goods that we have transferred from the factory to a store. It also
shows any sales of these goods.
DUTY DIFFERENCE
Enable us to post incoming excise invoices in the MIGO, even if any of the excise duty information
have been changed in the excise invoice tabs. Otherwise the transaction will only allow capturing
the excise invoice.

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Maintaining 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.
EXPORT PERIOD
The export period applies to exports under bond and exports under claim for rebate. The maximum
length of time that we are allowed to export goods from India after we have removed them from our
premises. If we exceed the export period, we forego the exemption from basic excise duty and we
must pay the excise duty to the excise authorities.
If we try to change ARE-1 after the end of the export period, the system issues a warning message.
We then have two options:
If we manage to obtain an extension from the excise department, we enter the extension date in the
ARE-1. This effectively extends the ARE-1S export period.
Otherwise in the case of exports under bond we must pay the excise duty plus interest. In the case of
exports under claim for rebate, we forego the excise duty already paid. We then close the ARE-1 as
normal.
REBATE

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Under Indias exports under rebate scheme, the maximum length of time that we are allowed to
reclaim any excise duty that we have paid on exports.
The system does not offer any functions for controlling, which ARE-1s have exceeded the rebate
period. SAP recommends that we create our own program for this purpose, if we wish.
Maintaining Excise Defaults
SELECT TAX CALCULATION PROCEDURE

Here we specify which tax procedure we want to use for determining excise duties and sales taxes
on input materials in India.
There are two types:

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Condition based excise determination

Formula based excise determination
This tax procedure also supports condition-based excise determination, so that we can work with
both concurrently. Once we have started using a tax procedure, we cannot switch to another one,
otherwise we will not be able to display old documents.
CONDITION BASED EXCISE DETERMINATION

A method that the system uses of determining excise duty in India. This method requires us to
create condition records for each combination of vendor or customer and material.
When we create a purchasing document, the system calls the tax procedure assigned to India. The
tax procedure finds all of the condition records that we have created for that combination of vendor
and material.
When we create a sales document, the excise duties and sales taxes are determined by the pricing
procedure.
FORMULA BASED EXCISE DETERMINATION
A method that the system uses of determining excise duty in India.
This method used in the country version India Add-on and requires us to maintain additional data in
the Excise Rate Maintenance transaction, J1ID.
Now for Taxinn, just only maintain JCV1.

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MAINTAIN EXCISE DEFAULTS

Here we define which tax procedure and pricing condition types are used in calculating excise taxes
using formula-based excise determination.
If we use condition-based excise determination, we have to only fill the CVD cond. Field
Now Conditions in CIN can be maintained as
Deduct able tax:JMOP
- IN BED Settoff %
JEC1
- A/P Edu. Cess Settoff
JSEP
- IN A/P H Ecess Setoff
JVRD - A/P VAT RM Deductable

SETOFF Must Be Maintained:JMX1 --
IN: A/P BED setoff
JEX1 ---
Ecess Setoff Sta
JHX1
IN: A/P SECess SOTot
Non Deductable Tax:JMIP
- IN BED Inventory
JEC2 - A/P Ecess Inventory

JSEI - IN A/P H Cess Inventory
JIPC - IN C Sales Tax INV
JVRN A/P VAT RM Non-Ded.
Condition For CVD in CIN :JCV1 - IN CVD e.g. 14%
JECV - IN CVD Prim Edu e.g. 2%
J1CV - IN CVD Sec Edu e.g. 1 %
Also few changes in TAXINN as
JMOP
JI1
India Basic Excise
Assign Tax Code to Company Code

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Maintaining Excise Accounts per Excise Transactions

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 sub transaction types, Enter the accounts for each sub transaction type as well.
57CM
57F CHALLAN COMPLETION
57FC
57F CHALLAN CAPTURE/CHANGE
57NR
57F NON RECEIPT

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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/PO
MRDY
REVERSAL WITHOUT REFERENCE
MRRD
REVERSAL INCASE OF COMSUMPTION OTHER THAN PRODUCTI
MRWO
CENVAT REVERSALS FOR WRITE OFF
OTHR
EXCISE INVOICE FOR OTHER MOVEMENTS
TR6C
PLA ACCOUNT ADJUSTMENT THROUGH
UTLZ
FORTNIGHTLY PAYMENTS
Excise
TT
Sub Transaction
Type
DC
indicator
Account
name
57CM
CR
CLEAR
57CM
DR
RG23AT1
57CM
DR
RG23BED
57CM
DR
RG23ECS
57CM
DR
RG23NCD
57CM
CR
CLEAR
57CM
DR
PLAAT1
57CM
DR
RG23AT1
57CM
DR
RG23BED
57CM
DR
RG23ECS
57CM
DR
RG23NCD
57FC
CR
PLAAT1
57FC
CR
PLABED
57FC
CR
PLAECS
57FC
CR
PLANCD
57FC
CR
RG23AT1
57FC
CR
RG23BED
57FC
CR
RG23ECS
57FC
CR
RG23NCD

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57FC
DR
CLEAR
57FC
CR
PLAAT1
57FC
CR
PLABED
57FC
CR
PLAECS
57FC
CR
PLANCD
57FC
CR
RG23AT1
57FC
CR
RG23BED
57FC
CR
RG23ECS
57FC
CR
RG23NCD
57FC
DR
CLEAR
57NR
CR
CLEAR
57NR
CR
PLAAT1
57NR
CR
PLABED
57NR
CR
PLAECS
57NR
CR
PLANCD
57NR
CR
RG23AT1
57NR
CR
RG23BED
57NR
CR
RG23ECS
57NR
CR
RG23NCD
57NR
DR
REVERS
57NR
CR
CLEAR
57NR
CR
PLAAT1
57NR
CR
PLABED
57NR
CR
PLAECS
57NR
CR
PLANCD
57NR
CR
RG23AT1
57NR
CR
RG23BED
57NR
CR
RG23ECS
57NR
CR
RG23NCD
57NR
DR
REVERS
ARE1
CR
CLEAR
ARE1
CR
PLAAT1
ARE1
CR
PLABED
ARE1
CR
PLAECS
ARE1
CR
PLANCD
ARE1
CR
RG23AT1
ARE1
CR
RG23BED

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ARE1
CR
RG23ECS
ARE1
CR
RG23NCD
ARE1
DR
REVERS
ARE3
CR
CLEAR
ARE3
CR
PLAAT1
ARE3
CR
PLABED
ARE3
CR
PLAECS
ARE3
CR
PLANCD
ARE3
CR
RG23AT1
ARE3
CR
RG23BED
ARE3
CR
RG23ECS
ARE3
CR
RG23NCD
ARE3
DR
REVERS
CAPE
CR
ONHOLD
CAPE
DR
ONHOLD
CAPE
DR
PLAAT1
CAPE
DR
RG23AED
CAPE
DR
RG23AT1
CAPE
DR
RG23BED
CAPE
DR
RG23ECS
CAPE
DR
RG23NCD
CAPE
DR
RG23SED
CAPE
IP
CR
ONHOLD
CAPE
IP
DR
ONHOLD
CAPE
IP
DR
RG23AED
CAPE
IP
DR
RG23AT1
CAPE
IP
DR
RG23BED
CAPE
IP
DR
RG23ECS
CAPE
IP
DR
RG23NCD
CAPE
IP
DR
RG23SED
CEIV
CR
MSUSP
CEIV
DR
PLAAED
CEIV
DR
PLAAT1
CEIV
DR
PLABED
CEIV
DR
PLAECS
CEIV
DR
PLANCD
CEIV
DR
PLASED

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CEIV
DR
RG23AED
CEIV
DR
RG23AT1
CEIV
DR
RG23BED
CEIV
DR
RG23ECS
CEIV
DR
RG23NCD
CEIV
DR
RG23SED
DIEX
CR
CLEAR
DIEX
DR
ONHOLD
DIEX
DR
RG23AED
DIEX
DR
RG23AT1
DIEX
DR
RG23BED
DIEX
DR
RG23ECS
DIEX
DR
RG23NCD
DIEX
DR
RG23SED
DIEX
IP
CR
CLEAR
DIEX
IP
DR
ONHOLD
DIEX
IP
DR
RG23AED
DIEX
IP
DR
RG23AT1
DIEX
IP
DR
RG23BED
DIEX
IP
DR
RG23ECS
DIEX
IP
DR
RG23NCD
DIEX
IP
DR
RG23SED
DLFC
CR
PLAAED
DLFC
CR
PLAAT1
DLFC
CR
PLABED
DLFC
CR
PLACESS
DLFC
CR
PLAECS
DLFC
CR
PLANCD
DLFC
CR
PLASED
DLFC
CR
RG23AED
DLFC
CR
RG23AT1
DLFC
CR
RG23BED
DLFC
CR
RG23ECS
DLFC
CR
RG23NCD
DLFC
CR
RG23SED
DLFC
DR
MSUSP
CR
PLAAED
DLFC
IP

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DLFC
IP
CR
PLAAT1
DLFC
IP
CR
PLABED
DLFC
IP
CR
PLACESS
DLFC
IP
CR
PLAECS
DLFC
IP
CR
PLANCD
DLFC
IP
CR
PLASED
DLFC
IP
CR
RG23AED
DLFC
IP
CR
RG23AT1
DLFC
IP
CR
RG23BED
DLFC
IP
CR
RG23ECS
DLFC
IP
CR
RG23NCD
DLFC
IP
CR
RG23SED
DLFC
IP
DR
MSUSP
EWPO
CR
CLEAR
EWPO
DR
RG23AED
EWPO
DR
RG23AT1
EWPO
DR
RG23BED
EWPO
DR
RG23ECS
EWPO
DR
RG23NCD
EWPO
DR
RG23SED
EWPO
IP
CR
CLEAR
EWPO
IP
DR
RG23AED
EWPO
IP
DR
RG23AT1
EWPO
IP
DR
RG23BED
EWPO
IP
DR
RG23ECS
EWPO
IP
DR
RG23NCD
EWPO
IP
DR
RG23SED
GRPO
CR
CLEAR
GRPO
DR
ONHOLD
GRPO
DR
RG23AED
GRPO
DR
RG23AT1
GRPO
DR
RG23BED
GRPO
DR
RG23ECS
GRPO
DR
RG23NCD
GRPO
DR
RG23SED
GRPO
IP
CR
CLEAR
GRPO
IP
DR
ONHOLD

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GRPO
IP
DR
RG23AED
GRPO
IP
DR
RG23AT1
GRPO
IP
DR
RG23BED
GRPO
IP
DR
RG23ECS
GRPO
IP
DR
RG23NCD
GRPO
IP
DR
RG23SED
MRDY
CR
PLAAED
MRDY
CR
PLAAT1
MRDY
CR
PLABED
MRDY
CR
PLACESS
MRDY
CR
PLAECS
MRDY
CR
PLANCD
MRDY
CR
PLASED
MRDY
CR
RG23AED
MRDY
CR
RG23AT1
MRDY
CR
RG23BED
MRDY
CR
RG23ECS
MRDY
CR
RG23NCD
MRDY
CR
RG23SED
MRDY
DR
CLEAR
MRRD
CR
PLAAED
MRRD
CR
PLAAT1
MRRD
CR
PLABED
MRRD
CR
PLACESS
MRRD
CR
PLAECS
MRRD
CR
PLANCD
MRRD
CR
PLASED
MRRD
CR
RG23AED
MRRD
CR
RG23AT1
MRRD
CR
RG23BED
MRRD
CR
RG23ECS
MRRD
CR
RG23NCD
MRRD
CR
RG23SED
MRRD
DR
CLEAR
MRWO
CR
PLAAED
MRWO
CR
PLAAT1
MRWO
CR
PLABED

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MRWO
CR
PLACESS
MRWO
CR
PLAECS
MRWO
CR
PLANCD
MRWO
CR
PLASED
MRWO
CR
RG23AED
MRWO
CR
RG23AT1
MRWO
CR
RG23BED
MRWO
CR
RG23ECS
MRWO
CR
RG23NCD
MRWO
CR
RG23SED
MRWO
DR
CLEAR
MRWO
IP
CR
PLAAED
MRWO
IP
CR
PLAAT1
MRWO
IP
CR
PLABED
MRWO
IP
CR
PLACESS
MRWO
IP
CR
PLAECS
MRWO
IP
CR
PLANCD
MRWO
IP
CR
PLASED
MRWO
IP
CR
RG23AED
MRWO
IP
CR
RG23AT1
MRWO
IP
CR
RG23BED
MRWO
IP
CR
RG23ECS
MRWO
IP
CR
RG23NCD
MRWO
IP
CR
RG23SED
MRWO
IP
DR
CLEAR
OTHR
CR
PLAAED
OTHR
CR
PLAAT1
OTHR
CR
PLABED
OTHR
CR
PLACESS
OTHR
CR
PLAECS
OTHR
CR
PLANCD
OTHR
CR
PLASED
OTHR
CR
RG23AED
OTHR
CR
RG23AT1
OTHR
CR
RG23BED
OTHR
CR
RG23ECS
OTHR
CR
RG23NCD

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OTHR
CR
RG23SED
OTHR
DR
MSUSP
OTHR
IP
CR
PLAAED
OTHR
IP
CR
PLAAT1
OTHR
IP
CR
PLABED
OTHR
IP
CR
PLACESS
OTHR
IP
CR
PLAECS
OTHR
IP
CR
PLANCD
OTHR
IP
CR
PLASED
OTHR
IP
CR
RG23AED
OTHR
IP
CR
RG23AT1
OTHR
IP
CR
RG23BED
OTHR
IP
CR
RG23ECS
OTHR
IP
CR
RG23NCD
OTHR
IP
CR
RG23SED
OTHR
IP
DR
MSUSP
TR6C
CR
PONHLD
TR6C
DR
PLAAED
TR6C
DR
PLAAT1
TR6C
DR
PLABED
TR6C
DR
PLACESS
TR6C
DR
PLAECS
TR6C
DR
PLANCD
TR6C
DR
PLASED
UTLZ
CR
PLAAED
UTLZ
CR
PLAAT1
UTLZ
CR
PLABED
UTLZ
CR
PLACESS
UTLZ
CR
PLAECS
UTLZ
CR
PLANCD
UTLZ
CR
PLASED
UTLZ
CR
RG23AED
UTLZ
CR
RG23AT1
UTLZ
CR
RG23BED
UTLZ
CR
RG23ECS
UTLZ
CR
RG23NCD
UTLZ
CR
RG23SED

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UTLZ
DR
CLEAR
UTLZ
IP
CR
PLAAED
UTLZ
IP
CR
PLAAT1
UTLZ
IP
CR
PLABED
UTLZ
IP
CR
PLACESS
UTLZ
IP
CR
PLAECS
UTLZ
IP
CR
PLANCD
UTLZ
IP
CR
PLASED
UTLZ
IP
CR
RG23AED
UTLZ
IP
CR
RG23AT1
UTLZ
IP
CR
RG23BED
UTLZ
IP
CR
RG23ECS
UTLZ
IP
CR
RG23NCD
UTLZ
IP
CR
RG23SED
UTLZ
IP
DR
CLEAR
Specify GL Accounts per Excise Transactions

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 sub transaction types, enter the accounts for each sub transaction type as well.

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Define Processing Modes Per Transaction

Use
In this IMG activity, you specify which processing modes the user can use in the various Incoming
Excise Invoice transactions. This way, you can tailor the transaction to what your users have to do.
Path
SPRO Logistics General Tax on goods movement India business transaction

incoming excise invoice define process modes per transaction
Define Reference Documents Per Transaction

Use
In this IMG activity, you specify for each combination of transaction and processing mode which
reference documents you want the users to be able to use.
Path

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incoming excise invoice define reference documents per transaction
Specify Which Movement Types Involve Excise Invoices

Use
In this IMG activity, you specify which movement types relating to goods receipts involve excise
invoices.
The system uses this information during the goods receipt procedure. When you post a goods
receipt using one of the movement types that you have specified here, the system prompts you to
enter the excise invoice number.
Path
SPRO Logistics General Tax on goods movement India business transaction incoming
excise invoice Specify Which Movement Types Involve Excise Invoices

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Assign Billing Types to Delivery Types

Use
You enter outgoing excise invoices by referring to either of the following documents:
Customer invoices
Pro forma excise invoices
These options are represented in the system by different document types and document flows.In this
IMG activity, you:
Specify which billing document types you use as a reference for CENVAT utilization
Assign them to the appropriate delivery document types
Path
SPRO Logistics General Tax on goods movement India business transaction Outgoing
excise invoice Assign Billing Types to Delivery Types

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Maintain Default Excise Groups and Series Groups

Use
In this IMG activity, you specify which excise group and series group you want to appear in these
fields by default. You can make separate settings for different combinations of sales organization,
distribution channel, division, and shipping point.
Path
SPRO Logistics General Tax on goods movement India business transaction Outgoing
excise invoice Maintain Default Excise Groups and Series Groups

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Subcontracting Attributes
Use
The subcontracting attributes help determine conditions for a combination of an excise group, a
transaction type, and a subtransaction type.
The conditions such as the number of excise items per subcontracting challan, if the nonexciseable
materials have to be filtered or not when the subcontracting challan is created, the movement type
groups for issues and receipts and the hierarchy of determining the excise base value are mentioned
here
Path

Subcontracting Subcontracting Attributes

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Movement Type Group

Movement Type Groups will be used to club the movement types based on their nature (issues or
receipts).
These Groups can be defined individually for each subtransaction type of every transaction type.
Path

Subcontracting Movement type Group

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Utilization Determination
Use
In this IMG activity, you specify which CENVAT accounts are to be debited by the Fortnight
Utilization of CENVAT report: When the report calculates how much excise duty you must remit, it
automatically proposes which CENVAT accounts the duty should be debited to. Here, you specify
those defaults.
You can either:
Debit all the excise duty to one accountDebit the excise duty to more than one account, in
which case you specify which percentage is to be debited to each account
Example
If you want 50% of basic excise duty (BED) to be debited to the RG 23A account and the remaining
50% to the RG 23C account, you would make the following settings:

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Acct name
BED perc.
RG 23A BED account 50

RG 23C BED account 50
Alternatively, to debit all of the BED to the RG 23A account, and then RG 23C account, if there is
not enough in the RG 23A account, you would make the following settings:
Acct name
BED perc. +
RG 23A BED account
RG 23C BED account
When you come to run the report, the system takes the RG 23A account because it is the first one
you have entered. If this account does not cover the BED, the system takes the RG 23C account
Path
SPRO Logistics General Tax on goods movement India business transaction Utilization
Utilization Determination

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Maintain Minimum Balances for Excise Accounts

Use
In this IMG activity, you can maintain minimum balances in your excise accounts. When the
balance in these accounts during utilization falls below this level, the system automatically utilizes
funds in the PLA account.
Activities
Maintain the minimum balance amount for the excise accounts. If you have more than one excise
group, you can maintain different minimum balances.
Path
SPRO Logistics General Tax on goods movement India business transaction Utilization

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Maintain Minimum Balances for Excise Accounts
No Range to be maintained in CIN

T Code: SNRO

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Raw Material PO Cycle

First of all maintain master data for Raw material
T Code: J1ID
Maintain chapter ID and save

After that maintain
After that maintain

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Assessable value is used in subcontracting challan (57F4)
After that maintain

System will consider the material is excisable or not
Create a raw material PO
Now click on Taxes to get calculation of tax

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V1 = EXCISE DUTY+CESS+SHEC+CST 2%
And save
After that validate the PO with ME29N

Now go to MIGO for Goods receipt
There is additional tab appears excise Invoice

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Fill excise Invoice number in delivery note provided by the vendor.

Now click on excise invoice tab
CST is not deductable in nature. It adds to material cost.

In the line item click on excise item
Here you can change the excise of the material if required

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After that post the Goods Receipt
Now display the material document number
After that click on FI document
System only post material cost + CST to inventory account.

Material Cost 7000
CST
INR
153.65 INR
Now to post excise invoice, go to T Code J1IEX

T Code: J1IEX

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Here select Post and vendor Excise Invoice number because at the time of Goods receipts vendor
invoice is already captured
Now click on duty values if you want to change the excise duty

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Click on
After click on

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Click on continue and excise invoice posted
Click on part 2 tab

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Go to MIRO to post the vendor bill
Now the Invoice posting entries are as
And click on post

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Reverse Excise Invoice

First Cancel GR
And post. After Posting Post the reverse excise invoice T Code J1IEX

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Simulate
System shows the reversal entry

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After that Post the excise Invoice
After posting cancel the Excise Invoice with J1IEX

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Click on yes

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After posting display the excise invoice,

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Return to Vendor
1. Create a Return PO
Validate the PO and Go to MIGO for Return
Go to J1IS to create Excise Invoice

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Give the Net Assessable Value and Excise percentage after that release for accounting
Summary of the Raw Material PO Cycle
In specify Excise Accounts per Excise Transaction as

1.
2.
3.
4.
5.
GRPO
GRPO
GRPO
GRPO
GRPO
CR Credit
DR Debit
DR Debit
DR Debit
DR Debit

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CLEAR CENVAT clearing account

ONHOLD CENVAT on hold account
RG23AT1 RG 23 AT1 Account
RG23BED RG 23 BED account
RG23ECS RG 23 ECS Account

52
Before MIRO Certain Account must be maintain in system

Go To T Code OB40
6. 1) A/P VAT RM Deductib
7. 2) IN:A/P SECess setoff
8. 3) India Basic Excise
JP5
J16
JI1
Please check all of Entry, These must be

During GR
Material Stock
Dr.
GR/IR clearing
Cr.
During Excise Invoice Credit

Cenvat Account
Dr.
Cenvat Clearing
Cr.
During Invoice Verification

Cenvat Clearing
Dr.
GR/IR Clearing
Dr.
Vendor Payable
Cr.
Subcontracting Cycle
Subcontracting material has two types

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1. Multiple Inputs and Single Output

2. Single Input and multiple Outputs
Multiple Inputs and Single Output
Prerequisites for receiving the subcontracting material 1. BOM should be defined properly. If it will maintained wrongly then always problem will
come for receiving the material and stock will not be match with actual quantity.
2. If you have maintained alternate BOM, first version will be maintained in material master
and this version will be maintained in Info record then that BOM will explode in purchase
order otherwise always explode first BOM in purchase order.
3. Purchase Order should be created correct with item category L.
Multiple Inputs and Single Output Cycle

1. Maintain Subcontracting material in J1ID
2. Maintain BOM of the material

T Code: CS01
Create Subcontracting PO with ME21N

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Click on Explode BOM
Here you can check if qty is fixed or not.

Difference is that when checks the check box, qty is fixed then suppose if qty of FG is changed then
also BOM qty remains the same.
Save the PO
After that validate the PO in ME29N

Now, Provide the Subcontracting material to the vendor
T Code MB1B

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Click enters and provides the PO number

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Now Create a Subcontracting challan J1IF01

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The Excise Base amt is picked from assessable value maintained.

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Check the Print Immediately if you want to print after saves.
Goods receipt is done with T Code MIGO
Go to Excise Tab, Select Subcontracting and give the challan number

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And post
Check the FI document in material document posted

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Reconcile Challan:It is very necessary step from Excise point of view that a Challan will be reconciled after every GR.
There are following two methods to reconcile the Challan:
1. If you have referred the Challan during the GR than you need to enter the MIGO-101 or
MIGO-105 document number and Reconcile in the T Code J1IFQ
If you have not referred the Challan during GR, then you have to give the reference of MIGO 101
and MIGO 105 document number as well as challan number which is to be reconciled in the
After GRN, Reconcile the subcontracting challan
T Code J1IFQ

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Click on

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System automatically picks the qty of the challan
And save
Complete Challan If subcontracting challan have fully reconciled then you have to complete the challan so that challan
will not appear in pending list.
T code J1IF13
Here give challan no and year and press enter.

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Once you enter the above screen will appear and complete challan radio button automatically will
tick.
Press save
button.
Now you can see the status of this challan in J1IF12 under

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64
Now you can run the report J1IFR
Reversal Challan
If you have send the material to subcontractor and material has not return back within 180 days then
you have to reverse the challan in T code (J1IF13) otherwise challan will not reconcile after 180
days.
You can check the list of challan which you have to reverse in coming days or will complete 180
days.
T Code J1IFR
Enter all inputs according your requirement and tick reversal due and give return date and click on
execute

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Then below list will appear.
In T code J1IF13 give challan no and year for reversal.
Press enter.

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Below screen will appear.
Check in
tab modvat debit amount which will be reversed in excise.
If it is correct then press save

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button.

67
Below message will appear in screen.
tab.
In J1IFR report you can also see reversed qty in qty due for reversal colum as per below screen
shot.

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Subcontracting of Project Stock

Material procured for project purpose, sending this project stock to a vendor for specific
manufacturing process/assembly and receiving the value added finished material back to project
Subcontracting of Project Stock (Special Stock) is different from normal subcontracting process; it
is not possible to transfer goods using movement type 541+Q
Difficulties involved in Subcontracting of Project Stock
In standard SAP, it is not possible to use 541+Q (Q refers to Project Stock) to transfer Project stock
to subcontracting vendor.
So, it is recommended to create new storage location to each subcontracting vendor & use 311+Q
movement type, based on this it is possible to monitor stock at subcontracting vendor.
Name/description of storage location should be same as subcontracting vendor for easy
identification.
In standard SAP, it allows only 541 material documents to create subcontracting challan but here it
is required to create challan with respect to 311+ Q material documents.
It is possible after doing required configuration (add the required movement type 311+Q in
configuration)
Steps to fallow in SAP & Transaction codes
Create materials (Part-A, Part-B & Assembly) MM01
Create BOM (Optional) CS01
Maintain CIN Master data J1ID
Create PR with A/c assignment Q & Item cat "L" ME51N
Create Info record with info category subcontracting (Optional) - ME11
Create PO with reference to PR (A/c assignment Q & Item cat "L") ME21N
Release PO (if release strategy exists) ME28
Define new storage location for Subcontracting Vendor SPRO
Maintain Movement type group for Subcontracting - SPRO
Transfer posting components to SC vendor with 311+Q MB1B
Check the stock with SC vendor using Tcode MMBE (not with ME2O) - MMBE
Create Subcontracting challan with ref to material document J1IF01
Print out of subcontracting challan J1IF11
Receive final product against subcontracting PO with 101 movement type MIGO_GR
Reconciliation of challan J1IFQ
Complete the challan J1IF13

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Check status of challan J1IF12


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Save the PO

Define new storage location for Subcontracting Vendor
Path: IMG Enterprise Structure Definition Materials Management Maintain Storage location
Maintain Movement type group for Subcontracting
Path: IMG Logistics General Tax on Goods Movements India Business Transactions
Subcontracting Maintain Movement Type Groups
Maintain movement type 311+Q against Movement type Group (ex: 0002)
Path: IMG Logistics General Tax on Goods Movements India Business Transactions
Subcontracting Subcontracting Attributes
Maintain Movement type Group (ex: 0002) in column Movement Type group for Issue for the
required Excise group combination.
Transfer posting components to SC vendor with 311+Q
T Code MB1B
Click enters and provides the details

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Check the stock with SC vendor using Tcode MMBE (not with ME2O)

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And post

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T Code J1IFQ

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Click on
System automatically picks the qty of the challan
And save
T code J1IF13

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Here give challan no and year and press enter.
Once you enter the above screen will appear and complete challan radio button automatically will
tick.
Press save
button.

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tab.
Now you can run the report J1IFR

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Subcontracting Cycle By Product
Subcontracting material has two types

1. Multiple Inputs and Single Output
2. Single Input and multiple Outputs
Multiple Inputs and Multiple Output
Prerequisites for receiving the subcontracting material 1. BOM should be defined properly. If it will maintained wrongly then always problem will
come for receiving the material and stock will not be match with actual quantity.
2. If you have maintained alternate BOM, first version will be maintained in material master
and this version will be maintained in Info record then that BOM will explode in purchase
order otherwise always explode first BOM in purchase order.
3. Purchase Order should be created correct with item category L.
4. The Byproducts should be maintained as negative qty in BOM.
Multiple Inputs and Multiple Output Cycle

3. Maintain Subcontracting material in J1ID
4. Maintain BOM of the material

T Code: CS01

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Save the PO

Now, Provide the Subcontracting material to the vendor

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T Code MB1B
Click enters and provides the PO number, system will only put Raw material not byproduct.

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Here byproduct is get with movement type 545

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And post

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Here scrap is by Product which is non-valuated in nature. So there is no account entry only qty
updated.
T Code J1IFQ

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Reconcile the challan as steps already provided in earlier cycle and save
T code J1IF13
Complete challan.
After this you will transfer the material with 542 movement type and give the reference of challan
then you will receive the co product and scrap in own stock.
You can check the by product at vendor location
In MB1B give Movement type 542, plant and storage location.

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Go to Go to Menu details item details

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Then one window will appear like this and press enter.
Give challan No in goods recipient field if more than one line item is there click on
challan no for another line items if available.
for enter
Again run the Report
Asset Cycle

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1. Non Valuated material created as Asset.

2. Go to J1ID to maintain it as assets
3. Create PO with Asset
Validate the PO and go to GRN
Now go to T Code MIGO for goods receipt (asset receipt)

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Display the material document.
And if you click on

There is no accounting document as asset is non valuated in nature.
Now go to J1iex to post excise invoice

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Click on
Here system put 50% on Hold account and 50% to Excise Accounts.
Click on the Post

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Check the Balance Credit Capital Asset T Code J2I8

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To avail balance credit on next year or same year depends upon the company scenario
Click on
Balance has been transferred.

Again if you run the report J2I8
There will be no item pending or on hold account.

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Import Cycle
1. Create Import PO ME21N
Now for import PO, GR base IV should be unchecked
Click on
Provide the % of Custom duty, Cess of Custom Duty, CVD etc.

Save PO and validate the PO.
2. Go to MIRO to capture Custom duty

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Select the planned delivery costs and provide the values of Qty and value
Now after capturing custom duty (planned delivery cost), Go to MIGO

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System asks for commercial invoice number
Click on

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After that post the excise invoice with J1iEX

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Click on enter

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Registers
1. Input Cenvat registers for monthly return
T Code: J2I9
Here there are two options for monthly return file with excise department
The date rate must be first date and last date of the month. Unless system will give the error
Suppose report run for inputs (Raw material)

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Now select the radio button capital Goods
If you want to check the simple report then selects the radio button abstract
System will give the brief summery for CENVAT
The printout of the monthly return is taken as

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2. Update the RG23A/C issue and RG1 Register

T Code J1I5
Now for classification there are certain options

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The following Classification codes need to be used while updating the Excise Registers:
Register Type
Goods issues
Goods receipts
RG 23A
IIM
ROP
IPD
IWD
RG23C
IIM
ROP
IPD
IWD
RG1
IDH
RMA
IDE
ROP
IWE
IWT
IWO
Now first of all select ROP

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These this RG23A part 1 is updated with raw material receipt
Now select all
And click on
After that select IIM issue the material

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After that select RMA
Select all and click on
3. Extract Excise Register

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Click yes
After that system will extract the register
4. Print Utility Program

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After that

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Monthly utilization
J2IUN

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Excise Opening Balance Uploading

This Business Process Procedure is also included in Building Block J94. But due to the change of tax
settings, we should use this BPP instead of the original one in J94.
RG23A and RG23C Part I Registers updation

Use
Before going live of any project normally you will be uploading initial stocks by using 561 movement in SAP
system. In Indian business scenario if the said material is subject to excise duty then we need to update Part
1 register with the stock.
Prerequisites
Initial stocks must have been uploaded into system by 561movement and for such materials all CIN details
(J1ID) like Chapter ID, Material and Chapter ID combination and CENVAT Determination should have been
maintained.
Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu
Country India User Menu Indirect Taxes Registers

Excise Tax Update RG23A/C Issues and RG1
Transaction code
J1I5
2. On the Update of Registers RG1 and RG23(Part1) screen, make the following entries:
Field name
Description
R/O /C
User
action
and
values
Company
Code
Company Code
SKHM
Plant
Plant for which RG1

Register is being maintained
SK01
Excise Group
Excise Group for which RG1

register is being maintained
S1
Material
Document
Number
Material document number
<enter the
material
document
number>
Document
Year
Material document year
Posting Date
Date of Material document

Posted

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Comment
561 Movement Material

document number
Material document year
Enter the
Material
Document
Posting
Date

112
Movement
Type
Movement Type used for

posting the materials
561
Storage
Location
Storage location used for

posting the material
movements
Material
Material number to update

the RG1 Register
Document
Date
Document date of the

material document
Batch
Batch number of the

materials
Stock Type
Stock Type declared
Rule
Excise Classification Rule
Classification
Pre-defined Classifications
ROP
Receipts
ROP-Receipt from
outside under any other
provision
RG23/ RG1
RG23 / RG1 updation date
Select the
appropriat
e radio
button to
update the
Register.
Please
select the
document
entry date
radio
button
Date to be considered by
the system for updation of
Register
Document Entry date
Document posting date
System date
Registers
Register to update
Select the
RG23A or
RG23C
radio
buttons
Choose any one of

RG23A Part1
RG23C Pat1
For this transaction
Please choose enter and ignore any messages.

3. System will display the Update of Registers RG1 and RG23 (Part1) screen:
Displays all the line items to meet the selection criteria to update the Register.
4. Select the line items which needs to be updated to Register by selecting the check box at the beginning
of the each line item
Chapter 13 Excise Opening Balance Uploading
5. Simulate the selection by using the Simulate function.
6. System will display the selection Green or Red Traffic lights. The line items which can be updated will be
displayed with Green Traffic Lights and the line items which can not be updated will be displayed with
Red Traffic Lights.

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7. After selecting the right documents select the line item and choose the Register Entry button to update
the Register.
Please perform step 7 only once, because if you perform two or three times, the system will generate
two or three times in register which may not required.
8. To see the changes you need to extract the respective register by transaction code J2I5 and print utility
program by transaction code J2I6 as per the BPP mentioned above.
RG23A Part II and PLA Registers updation

Use
Before going live of any project normally you will be uploading initial balances by using FI transactions in
SAP system. By the time client go-live there might be some opening balance in RG23A Part II and PLA
registers.
This transaction involves Direct Table Entries so, please be careful when you are doing this
transaction. You have to do this activity before Extracting (J2I5) transaction i.e. there should not be
any entries in J_2IACCBAL table. If they are exists you can delete them and make the following
transaction and then Extract (J2I5) again.
Please do note that this is purely manual transaction system does not have any control or validations
in this i.e. system will cross check with any other entry.
Prerequisites
All CIN customization must have completed.
Procedure
SAP R/3 menu
Tools ABAP Workbench Development ABAP

Dictionary
Transaction code
SE11
2. On the ABAP Directory: Initial Screen, make the following entries.

3. Choose J_2IACCBAL against Database Table filed and choose Display (F7) icon to enter into table.
4. On Dictionary: Display Table screen, choose Utilities Table contents Create Entries from Menu bar
and make the following entries:
Field name
Description
R/O /C
User action and

values
Comment
MANDT
Client
Leave it blank
Grayed out by system, sys

will give client number.
EXGRP
Excise Group
10
Choose appropriate excise

group
REGISTER
Data element for

Register n
RG23ABED for
RG23A BED
register
You can choose the

appropriate register listed
at the bottom.
DATUM
Date
<Enter month
For example if you are

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114
end date>
30.04.2010
WERKS
Plant
Leave it blank
OP BAL
Basic duty (OP BAL)
Leave it blank
CL BAL
Basic duty (CL BAL)
9999.99
for example INR
EXAMT
Basic duty (EXAMT)
Leave it blank
EXIND
Extract Indicator
Leave it blank
USNAM
User name
Enter you user ID
CPUDT
Entry Date
Entry date
31.12.2009
CPUTM
Entry time
Enter time
going live from

01.01.2010, then you must
enter the last day of
previous month i.e. 31.12.
2009. When you extract
register the date range
should be from 01.01.2010
to 31.01.2010.
Enter the closing balance

as on 31.12.2009
Date on which you are

making entry
The following are Data elements for Registers:

RG23ABED, RG23ASED, RG23AAED, RG23CBED, RG23CSED, RG23CAED, PLABED, PLASED,
PLAAED, PLACESS.
5. After making table entries save the entries by choosing Save icon or Ctrl + S.
Please do remember that this is only a direct table entry of opening balance, system does not check
the actual FI entries. You need to make an appropriate FI entry to suitable to above transaction. An
example is give below for your reference:
You can use F-02 transaction code to pass the following FI entry:
RG23A Part II Account
DR
To Initial balances clearing a/c

Or
PLA BED Account
DR

You can choose any appropriate accounting entry which is suitable to client.

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6. After making table entry if you want to see you can extract register by using J2I5 transaction code (as
explained 1.2.1 and 1.2.2). But you need to remember the extraction date should be 01.01.2010 to
31.01.2009 as you have given closing balance as on 31.12.2010.
7. Extraction is possible only if there are some transactions (actual incoming excise invoices). That is to
say you can extract register only after your first actual CIN transaction in system (other than opening
balance).
The same process can be followed for PLA register also.
Result
Table entry for RG23A Part II is made.
RG23C Part II
Use
To upload the opening balance in RG23C Part II.
This transaction involves Direct Table Entries so, please be careful when you are doing this
transaction. You have to do this activity before Extracting (J2I5) transaction i.e. there should not be
any entries in J_2IACCBAL table, except the balances of RG23A Part II and PLA balance as
mentioned above. If they are exists you can delete them and make the following transaction and
then Extract (J2I5) again.
Please do note that this is purely manual transaction system does not have any control or validations
in this i.e. system will cross check with any other entry.
The RG23C is for CENVAT credit on capital goods. Hence in this step you upload only the balance in
the RG23C Part II. The RG23C balance on hold will not be uploaded in the table. The balance
will remain in the FI books as a balance in a GL account. When this credit for the On hold balance is due, it
will be transferred to RG23C Part II using Excise JV (transaction code J1IH).
Prerequisites
All CIN customization must have completed.
Procedure
SAP R/3 menu
Tools ABAP Workbench Development ABAP

Dictionary
Transaction code
SE11
2. On the ABAP Directory: Initial Screen, make the following entries.

3. Choose J_2IACCBAL against Database Table filed and choose Display (F7) icon to enter into table.

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4. On Dictionary: Display Table screen, choose Utilities Table contents Create Entries from Menu bar
and make the following entries:
Field name
Description
R/O /C
User action and

values
Comment
MANDT
Client
Leave it blank
Grayed out by system, sys

will give client number.
EXGRP
Excise Group
10
Choose appropriate excise

group
REGISTER
Data element for

Register n
RG23CBED for
RG23C BED
register
You can choose the

appropriate register listed
at the bottom.
DATUM
Date
<Enter month
end date>
30.04.2010
For example if you are

going live from
01.01.2010, then you must
enter the last day of
previous month i.e. 31.12.
2009. When you extract
register the date range
should be from 01.01.2010
to 31.01.2010.
WERKS
Plant
Leave it blank
OP BAL
Basic duty (OP BAL)
Leave it blank
CL BAL
Basic duty (CL BAL)
9999.99
for example INR
EXAMT
Basic duty (EXAMT)
Leave it blank
EXIND
Extract Indicator
Leave it blank
USNAM
User name
Enter you user ID
CPUDT
Entry Date
Entry date
31.12.2009
CPUTM
Entry time
Enter time
Enter the closing balance

as on 31.12.2009
Date on which you are

making entry
The following are Data elements for Registers is available for RG23C Part II.
RG23CBED, RG23CSED, RG23CAED.
5. After making table entries save the entries by choosing Save icon or Ctrl + S.
Please do remember that this is only a direct table entry of opening balance, system does not check
the actual FI entries. You need to make an appropriate FI entry to suitable to above transaction. An
example is give below for your reference:
You can use F-02 transaction code to pass the following FI entry:
RG23C Part II Account
DR

2011 SAP AG

117
You can choose any appropriate accounting entry which is suitable to client.
6. After making table entry if you want to see you can extract register by using J2I5 transaction code (as
explained 1.2.1 and 1.2.2). But you need to remember the extraction date should be 01.01.2010 to
31.01.2010 as you have given closing balance as on 31.12.2009.
7. Extraction is possible only if there are some transactions (actual incoming excise invoices). That is to
say you can extract register only after your first actual CIN transaction in system (other than opening
balance).
The same process can be followed for PLA register also.
Result
Table entry for RG23C Part II is made.
RG23C On Hold
Use
When capital purchases are made which are eligible for CENVAT, RG23C(Part II) will be credited with only
50% of the CENVAT. The balance 50% will be CENVAT on Hold.
The CENVAT on hold opening balance is not to be uploaded into Excise Register. It will remain as a
balance in GL A/c for CENVAT on hold (Account No. 24930000 in chart of Accounts CAIN).
In the new year when the credit for the CENVAT on hold is due the credit is taken using excise JV. The
procedure for this is as follows, assuming CENVAT on Hold credit to be taken into RG23C (BED) is to be
taken for Rs. 100.00
Procedure
SAP R/3 Menu
Indirect Taxes Excise JV Create
Transaction code
J1IH
2. On the Excise JV Main Menu screen choose Additional Excise.

3. On the Create Excise JV Initial Screen (Diff Excise Posting) screen make the following entries:
Field name
Description
User action and

values
Comment
Document Number
Enter any dummy entry
Document year
Current year
Example 2004
Company Code
SKHM
Plant
SK01

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Excise group
S1
Sub-transaction
OH
Modvat Account
Selection
RG23C
4. Choose Enter to continue.

5. On the Create Excise JV Details wrt to exc inv A 2004 for diff exc post Screen make the following
entries:
Field name
Description
User action and

values
Document Date
Todays date
Posting date
Date on which to
Post
BED Amount
200.00
Comment
Enter twice the amount of

credit to be taken
6. Choose Determine GL accounts.

System determines the GL accounts automatically in the dialog box Excise JV G/L Account Determination.
No changes to be made. Choose Enter.
7. Choose Save or Crtl+S.
Result
System issues a message successfully created with reference of the documents created. Following
Accounting entry is pass
Itm
PK
Account short
Account text
Assignment Tax code Amount
50 24930000 CENVAT hold
V0
-200
40 24930000 CENVAT hold
V0
100
40 24850000 CENVAT CapBED
20040603 V0
100
RG23C (Part II) is credited for Rs. 100.00

2011 SAP AG

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Copyright
Copyright 2011 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.
The information contained herein may be changed without prior notice.
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