Cin :-

CIN TAX INJ

CIN -TAXINJ Central Excise Act1944 It is an Indirect Tax. At the Time of Goods removable-Excise Tax will be paid. BED : Basic Excise duty (Normal Rate16%). AED : Additional Excise Duty (Textile Products) SED : Special Excise Duty %on Base Amount (Tobacco Products) Edu. Cess : Educationcess @ 2% BED/SED/AED (Which is applicable) Excise Rates are given in Excise Tariff and We Have Chapter Ids: for Textile Products. 1.Inputs - Consumables 2.Capables - Capital Items Terms We Use RG23A : Part1.Quality, Consumables Part2.Value Updation RG23C : Part1: Quality Capital Goods (Capital Goods) Part2: Value (Capital Goods) PLA : Personal Ledger A/C. Registers: RG23A : Consumables RG23C : Capital Goods RG23D : Report Books PLA : Cash Payments/Cash Deposits RG1 : Stock Register (Finished Goods) RP(l2) : Monthly Return

ECC No. : Excise Control Code Registration No: 15 Digits Alphanumeric 10 Digits of PAN No+5 Digits

MM-Flow Purchase Order (P.O) (We give Vendor No, Rate, Material, Tax Code) Basic Amount 100.00 Excise Duty @ 16% 16.00 116.00 VAT@ 4% 5.00 (On Basic + Excise) 121.00 Goods Receipt (GR): Which is reference to Purchase Order a) Inventory PM Local A/c Dr 100.00 To GR/IR Local A/c 100.00 b) RG 23A A/c Dr 16.00 To CENVAT Clearing A/c 16.00 Invoice Verification a) GR/IR Clearing A/c Dr 100.00 CENVAT Clearing A/c Dr 16.00 VAT Receivable A/c Dr 5.00 To Vendor A/c 121.00 SD Flow Sale Order: (SO): (We give Customer No, Qty, Rate, Material, Tax Code (Manually/Automatically) Basic Amount 300.00 Excise Duty @ 16% 48.00 348.00 VAT@ 4% 1300 (On Basic + Excise) 361.00

Delivery: With PGI or Without PGI Billing a) Customer A/c Dr 361.00 To Sales 300.00 To CENVAT Suspense A/c 48.00 To CENVAT Payable A/c 13.00 Excise Invoice Creation a) CENVAT Suspense A/c Dr 48.00 To CENVAT Payable A/c 48.00 Payment 5th of Next Month a) PLA Deposit A/c Dr 100.00 To Bank A/c 100.00 (It is not an exact amount it will be more or less) b) CENVAT Payable A/c Dr 48.00 To RG23A A/c 16.00 To PLA A/c 32.00 5th of Next Month Sales Tax (VAT) a) VAT Payable A/c Dr 13.00 To VAT Receivable A/c 5.00 To Bank A/c 8.00

CIN Taxinj Configration

Customization TAXINJ : Formula Based (Generally Companies using this method) TAXINN : Condition Based. In Client 000 SAP System given the both TAXINI & TAXINN In FI we have Sales Tax Procedure in that Create Tax code and Make FI tax Procedure SD Excise. Condition Make it Statistical. USE SD Pricing Procedure SD Module: Open OOO Client Tax Procedure SPRO / Financial Accounting / Financial Accounting Global settings /Tax on ales\Purchases /Basic Settings / Check Calculation Procedure / Define Procedure Select Position Button and give the Procedure : TAXINJ and press Enter button Select TAXINJ (Sales tax India,) Double Click on Control Data Folder System has given 50 Conditions Open 800 client & Create Condition types SPRO / Financial accounting / Financial Accounting Global Settings / Tax on Sales\Purchases / Basic Settings / Check Calculation Procedure / Define Condition Types Select New Entries Button Condition Type : TTK1 ( Accounts Payable BED) Access Sequence : TAXJ Condition Class : D Calculation Type : A (%) Condition Category : 1 (Tax Jurisdiction Level.) Item Condition Save (or) Ctrl+S Select Create request Button

Give the Description TTK exercise Customization and press Enter Button Save in Your Request Select TTK1 and Select Copy as Button Condition Type: TTK2 (APCST) Enter Save or Ctrl+S Select TTK1 once again and Select Copy as Button Condition type: TTK3 (APVAT) Enter Save or Ctrl+S. Sales:Select TTK1, TTK2, TTK3 Select Copy as Button Condition Type For TTK1 to TTKA (Accounts Receivable BED) Press Enter Button Condition Type For TTK2 to TTKB (Accounts Receivable CST) Press Enter Button Condition Type For TTK3 to TTKC (Accounts Receivable VAT) Press Enter Button Save (or) Ctrl+S Check and Change for Tax Processing:SPRO / Financial accounting / Financial Accounting Global Settings / Tax on Sales\Purchases / Basic Settings / Check Calculation Procedure / Check and Change for Tax Processing Select New entries Button Process : TT1 (Accounts Payable Excise BED) Tax type : 2 (Input Tax) Posting Indicator : 2 (Separate Line Item) Save (or) Ctrl+S Save in your Request Select New Entries Button. Process : TT2 (Accounts Payable CST) Tax type : 2 (Input Tax) Not Deductible Posting Indicator : 3 Distribute to : Relevant Exp/Revenue Items Save (or) Ctrl+S

Select Next Entry Button Process : TT3 (Accounts Payable VAT) Tax Type : 2 (Input Tax) Posting Indicator : 2(Separate Line Item) Save (or) Ctrl+S Select Next Entry Button Process : TTA (Accounts Receivable Excise BED) Tax Type : 1 (Output Tax) Posting Indicator : 2(Separate Line Item) Save (or) Ctrl+S Select Next Entry Button Process : TTB (Accounts Receivables CST) Tax Type : 1 (Output Tax) Posting Indicator : 2(Separate Line Item) Save (or) Ctrl+S Select Next Entry Button Process : TTC (Accounts Receivables VAT) Tax Type : 1 (Output Tax) Posting Indicator : 2(Separate Line Item) Save (or) Ctrl+S

Define Procedures:SPRO / Financial accounting / Financial Accounting Global Settings / Tax on Sales\Purchases / Basic Settings / Check Calculation Procedure / Define Procedures Select New Entries Button. Procedure : TAXINJ Description : Sales Tax India. Save or Ctrl+S Save in your Request.

Select TAXINJ and Double Click on Control Data folder. Select New Entries Button. Step Condition Type Description From To Statistical Alternative Condition Type Alternative Condition Base Value Account Key Step Ctype Description From To Stat AltCTy AltCBV ActKy For Purchases 100 BASB 362 352110 Calculated Cell 100 100 200 TTK1 110 110 354 TT1 300 Basic + Excise 110 200 400 TTK2 Basic + Excise 300 300 363 TT2 500 TTK3 300 300 370 363 TT3 For Sales: 352600 Calculated Cell 100 100 700 TTKA AR Excise BED 600 600 363 TTA 750 AR Basic + AR Excise 600 700 800 TTKB 750 750 TTB 900 TTKC 750 750 TTC Save (or) Ctrl+S Assign Country to Calculation Procedure: SPRO / Financial accounting / Financial Accounting Global Settings / Tax on Sales\Purchases / Basic Settings / Check Calculation Procedure / Assign Country to Calculation Procedure Select Position Button and give Country IN and press Enter button Country : IN (India) Procedure : TAXINJ Press Enter Save Save in your Request. Specify Structure for Tax Jurisdiction Code: SPRO / Financial accounting / Financial Accounting Global Settings / Tax on Sales\Purchases / Basic Settings / Specify Structure for tax Jurisdiction Code Select New Entries Button Reference Name Length Length TAXIN TAXINJ Sales Tax India 2 2 Save (or) Ctrl+S Define Tax Jurisdiction Code: SPRO / Financial accounting / Financial Accounting Global Settings / Tax on Sales\Purchases / Basic Settings / Define Tax Jurisdiction Code Country Key : TAXINJ and Press Enter button Select New Entries Button Jurisdiction Code : ZZ00

Name : Tax Jurisdiction Code Save (or) Ctrl+S Creation of Tax Code:-(FTXB) SPRO / Financial accounting / Financial Accounting Global Settings / Tax on Sales\Purchases / Basic Settings / Creation of Tax Code For Purchases: Country : IN (India) Press Enter button Tax Code : V0 Jurisdiction Code : ZZ00 Valid From : 01.04.2007 Press Enter button Description : 0% Input Tax Tax Type : V (Input Tax) Press Enter button AP Excise BED : Select Deactivate Line button APCST : Select Deactivate Line button APVAT : Select Deactivate Line button AR Excise BED : Select Deactivate Line button ARCST : Select Deactivate Line button ARVAT : Select Deactivate Line button Save (or) Ctrl+S Tax Code : V1 Press Enter button Description : Input Tax - Excise @ 8%, CST @ 4% Tax Type : V (Input Tax) Press Enter button AP Excise BED : 100% APCST : 4% APVAT : Select Deactivate Line button AR Excise BED : Select Deactivate Line button ARCST : Select Deactivate Line button ARVAT : Select Deactivate Line button Save (or) Ctrl+S Tax Code : V2 Press Enter button Description : Input Tax Excise - @ 8%, VAT @ 4% Tax Type : V (Input Tax) Press Enter button AP Excise BED : 100% APCST : Select Deactivate Line button APVAT : 4% AR Excise BED : Select Deactivate Line button ARCST : Select Deactivate Line button ARVAT : Select Deactivate Line button Save (or) Ctrl+S For Sales: Tax Code : A0 Press Enter button Description : 0% Output Tax Tax Type : A (Output Tax) Press Enter button

AP Excise BED : Select Deactivate Line button APCST : Select Deactivate Line button APVAT : Select Deactivate Line button AR Excise BED : Select Deactivate Line button ARCST : Select Deactivate Line button ARVAT : Select Deactivate Line button Save (or) Ctrl+S Tax Code : A1 Press Enter button Description : Output Tax - Excise @ 16%, CST @ 4% Tax Type : A (Output Tax) Press Enter button AP Excise BED : Select Deactivate Line button APCST : Select Deactivate Line button APVAT : Select Deactivate Line button AR Excise BED : 100% ARCST : 4% ARVAT : Select Deactivate Line button Save (or) Ctrl+S Tax Code : A2 Press Enter button Description : Output Tax - Excise @ 16%, VAT @ 4% Tax Type : A (Output Tax) Press Enter button AP Excise BED : Select Deactivate Line button APCST : Select Deactivate Line button APVAT : Select Deactivate Line button AR Excise BED : 100% ARCST : Select Deactivate Line button ARVAT : 4% Save (or) Ctrl+S Assign 0% Tax Codes for Non Taxable Transactions (OBCL): -

Co. Code Input Tax Output Tax Tax Jurisdiction Code TTK V0 A0 ZZ00 Activate Country Version India For Specific Fiscal Year:SPRO / Financial accounting / Financial Accounting Global Settings / Tax on Sales\Purchases / Basic Settings / India \ Activate Country Version India For Specific Fiscal Year Select Position button Component Activate INDIA Save or Ctrl+S Save in Your Request.

#1. How to do dunning for vendor? What are the purposes of dunning for vendors?
Dunning is the process of sending a letter to a customer notifying about the outstanding. Defined letter forms are issued to the customer for this purpose. Dunning letters are also sent to vendors who took an advanced payment but due to some reason they failed to meet the settled delivery date. In short dunning is a proper process of notifying some business related entity about their out standing debts either in material, product, equity or services.

#2. What is Account Modification Key?

Account modification key are general modification key that can be found in tcode OBYC- GBB- AUF, AUI, VBX and VBR. These keys defecate with events such as production received with or without production received OR goods issued for sales or consumption purposes. These keys are linked through movement types which can be observed in the tcode OMJJ link under the account grouping.

#3. What is APC?

Acquisition and Production costs APC means any asset which one may wish to acquire or purchase externally. Invoice and other related expenditures associated with it like octroi, customs, freight which is added to arrive at the total cost or expenditure are included in them. Consider an example of a car. Additional expenditures like road and sales tax gets added for the acquisition of the car which becomes the APC. Production cost resembles the cost associated with asset that is created internally within the organization. Generally these are created by AUC. For example addition of new AC machine in office.

#4. What is meant by Framework? Is the framework related only to AUTOMATION or it is applicable to MANUAL testing too?
Framework is a defined process which acts like a generic work or a set of rules that should be followed in order to perform a specific task in such an optimized way that the product must be useful for future execution of the test scripts in the most effective and efficient manner. Tough this can only be possible in Automation. Manual testing can also provides a better view of the state that is to be followed in order to execute that test case.

#5. What is a special GL transaction?

In SAP systems bill of exchange are being handled as special G/L transactions. They are maintained independently in respect to other transactions in subsidiary ledger and are posted to the general account of a special G/L account. This provides an overview of bills exchange receivable and payable at any stage. Transfer postings are usually not necessary to display these on the balance sheet.

#6. Briefly discuss about asset master.

An asset manager manages asset and belongings of an organization effectively. It can be created by an existing asset of the same company code or another company. When it is created for the first time it can be done from scratch. SAP allows multiple asset to be created in one go assuming that all such asset belong to the same type.

#7. What are the segments of GL master record?

GL master records control the processing of the posted data and the accounting transaction posting to G/L accounts. In the system master data are created prior to the postings to a G/L account. It is classified into two areas that prepare company codes based on charts that use the same GL accounts. They are:1. Chart of accounts 2. Company code area

#8. What is the difference between business area and profit center?
Business Area helps to prepare Balance sheet of profit or loss incurred for individual product segment, geographical segment etc. In countries like India it is also referred as external reporting. Profit centre is restricted to perform its activities regarding the profit only i.e. revenue minus expenses. This is also known as internal reporting.

#9. What is internal and external number ranges? Discuss how they differ in their use?
In Internal Number Ranges the system automatically specifies the Doc. number in serial ordering in order to allot the next available progress number provided that the number should be numerical. In External Number Ranges the end user manually supplies the Doc. number without the automatic intervention of the system. User may also choose the number in a random manner which can also be alphabetical in nature.

created ? #10. What is the integration point in FI-MM in obyc. Which GL a/c has to be
The goods receipt initiates the FI-MM integration which in turn generates the account entry that is inventory a/c dr to gr/ir account. During the time of invoice verification GR/IR a/c Dr Vendor a/c will be generated for which relevant GL accounts must be assigned in obyc by linking valuation grouping code, valuation class and the general modifications based on the accounting entries.

#11. In movement type(MM), what is value & quantity string? It updates values and quantities in GL with valuation class, transaction key modifier and GL A/c. But how does it work when doing a mvt type?
The system itself cannot know which GL has to be updated. So a specific direction has to be given to the system to do so. It is correct that the system updates the value and quantity in the material master. During a

PO creation the system will take a movement type as its base along with MT it will identify the MI then identifying the consumption value string and then finally post the entry (dr/cr) to the GL depending upon the event key figure and transaction that are used to find out the credit/debit entry of a GL.

#12. What is open line item management? What is meant by clearing open line items?
Open Item management is further balancing/reconciliation of functions. Open item management lets us display the amount, open and cleared items regarding a specific account. The account is first cleared and then settled up with another account this is known as clearing open lines. For example, GR/IR clearing account and Salary clearing account.

SAP FI/CO 1.Explain the concept of organizational units in SAP. Organizational units in SAP are the elements which actually represent the real world business and is used for reporting. The various organizational units in SAP are company code, company, client, Controlling Area , plants, sales organization, purchasing organization, employee group etc.

2.Explain the concept of company code in SAP FI. Company code in SAP is the smallest organizational unit for which one can draw individual financial statements(Balance sheet and profit and loss account) for external reporting. It is mandatory to define company code in SAP FI.

3.Explain the concept of business area in SAP. A business area in SAP corresponds to specific business segments of a company. For eg. A company may have different business specializations like infrastructure, real estate, petro-chemicals etc. Each refers to a business area in SAP. The definition of business area is optional. We can draw financial statements per business area for the purpose of internal reporting.

4.Explain the concept of chart of accounts in SAP. The list of all G/L accounts used in one or more company codes is called chart of accounts. Every G/L account in a chart of account will have a account name, account number and other details. There are three types of chart of accounts, Operating chart of accounts Country chart of accounts Group chart of accounts.

5.Brief what an operating chart of account is. Out of the three types of chart of accounts operating(or standard) chart of account is used for day to day postings in a company. It is used by both FI and CO. It is mandatory that it is assigned to the company code.

6.Explain the concept of posting period and what a posting period variant is. Every fiscal year in SAP is divided into various posting periods, where the books of account are open for postings. Normally in SAP system there will be 12 posting periods and 4 special posting periods. A posting period variant is used for closing and opening a posting period. In SAP system a posting period variant is defined and is assigned to various company codes. If we want to close the posting of a particular company code it can done simply and centrally.

7.Explain the concept of shortened fiscal year In many cases an enterprise would have a financial year with less than 12 months. Configuring such a scenario in SAP requires the concept of a shortened fiscal year. Eg. A company is started in the month of septemper where the fiscal year is from march to april.

8. Explain what a Tax jurisdiction code is in SAP. A tax jurisdiction code is a combination of the codes defined by tax authorities. It is used in countries like US.Upto four levels can be defined below the federal level. The four levels are,

Sub-city level, city leve, country level, state level. The following paremeters should be configured before defining a jurisdiction code Create access sequence Create condition type Create jurisdiction codes.

9.Explain the concept of document in SAP. SAP is a table driven software and SAP FI is a module based on the principle of document. All the transactions performed in FI would result a document. A document is a result of a posting in accounting in SAP. There are actually two types of documents, original document and processing document. Every document consist of A document header and two or more line items. 10. What is a line item in SAP FI? All the information relating to account number, amount, debit/credit, tax, code etc are maintained in a line item. A single document can have upto 999 line items. Apart from the line items created by human the system also can create its own line items called system generated line items. The main point to be kept in mind is that, what ever be entered in line item, the grand total should always be zero, ie, total credit should always equal total credit. Otherwise the system would not allow to post the document. 11. Explain the concept of posting key in SAP FI. The entry of line item is controlled by a 2 digit alphanumeric key called a posting key. A posting key also determines the following facts, Which side of account the entry can be posted to, either the debit side or the credit side. The layout of a particular screen to be used for a particular transaction What account can be posted to. Sap comes with many predefined posting keys;40(GL debit), 50(GL credit), 01(customer credit memo), 21( vendor credit memo) etc. 11.Explain what a field status group is in SAP FI A field status group is an individual field or a group of fields which is assigned to a field status variant. The field status variant is then assigned to a particular GL account master records