Wednesday, June 25, 2008

Credit Management Reports Credit and Risk Management in FI/SD

The following table provides an overview of all the reports that are available for credit management:

Program

Function

RFDKLI10

Customers with Missing Credit Data

Checks whether the data regarding credit limits is complete and issues relevant error lists. These enable you to maintain the relevant definitions either manually or with batch input.

RFDKLI20

Reset Credit Limit for Customers

Resets the credit limit information in the control areas.

RFDKLI30

Credit Limit Overview

Lists the central and control area data for each customer.

RFDKLI40

Credit Overview

Provides a comprehensive overview of the customer’s credit situation.

RFDKLI41

Credit Master Sheet

Displays and prints the customer master data for an individual account that is needed for credit management.

RFDKLI42

Early Warning List

Displays and prints customers in Credit Management who have been listed by the credit check as critical.

RFDKLI50

Credit Limit Data Mass Change

Changes all the credit management master data together.

RFDKLIAB

Display Changes to Credit Management

Displays the changes to credit management master data for all accounts.

RVKRED06

Check Blocked Credit Documents

Checks all the documents blocked for credit reasons. The report is started in the background and should run after the incoming payments programs.

RVKRED77

Reorganize SD Credit Data

Reorganizes open credit, delivery and billing values. It can be used in the event of an update error, for example.

RVKRED08

Checking sales documents which reach the credit horizon

Rechecks all sales documents that fall within the credit limit horizon of the dynamic credit limit check. The report is run at regular intervals and should be run at the start of each period. The system uses the current date and the period split for the open order values to propose the ‘next credit check date’.

RVKRED09

Check Credit Documentsin Background

Checks released documents whose validity period of the release has been exceeded (number of days).

RVKRED88

Simulating Reorganization of SD Credit Data

To run a report:

  • Choose System
  • --> Services --> Reporting.
  • Enter the name of the report.
  • Choose Program
  • -->Execute.
  • Enter your selection criteria.
  • Choose Program

  • --> Execute or Program --> Execute and print.

    Postings Without Credit Limit Checks Credit and Risk Management in FI/SD

    Use

    You can exclude the following postings from the credit limit check:

    • Special G/L transactions
    • Postings with an alternative reconciliation account

    Features

    Special G/L transactions

    You can specify whether each special G/L transaction should be included in the credit limit check. In the standard system down payments are included in this check, but not down payment requests.

    When checking the credit limit, the system updates three comparison totals. These include:

    • Open receivables
    • Special G/L transactions (e.g. down payments and bills of exchange)
    • Sales order values, value of goods to be delivered, and billing document value from SD

    When the system checks as to whether the credit limit has been exceeded, down payments received are deducted from the receivables. If you do not want them to be deducted, you will need to change the system default values.

    You do this in Customizing for Accounts Receivable and Accounts Payable by choosing Business Transactions ® Down Payment Received ® Define Reconciliation Accounts for Customer Down Payments

    1. Carry out this activity.
    2. Choose one of the entries under Sp.G/L.
    3. The system displays the Chart of Accounts Entry dialog box.

    4. Enter a chart of accounts.
    5. Choose Goto ® Properties.
    6. Ensure that the field Rel.to credit limit is not selected.

    Alternative reconciliation account

    By making use of an additional (alternative) reconciliation account, you can exclude certain postings from being subject to the credit management update. Proceed by first defining this account in Customizing for Accounts Receivable and Accounts Payable, and then setting the indicator Recon. acct ready for input in the G/L account master record.

    This function is used in Japan, where various "safe" receivables often need to be excluded from the Credit Management update. "Safe" receivables include prepayments and accrued income, and payment by letters of credit.

    For more information on this topic, in Customizing for Accounts Receivable and Accounts Payable, choose Credit Management ® Business Transaction: Credit Monitoring ® Define Reconciliation Accts Without Credit Management Update and access the documentation on this activity.

    Authorizations for Critical Credit Control Fields Credit and Risk Management in FI/SD

    Fields in the customer master record that contain sensitive data (for example: credit limit, risk category) can be grouped for authorization purposes. You can then authorize certain credit representatives to change these fields. Without this authorization, the representatives can only display these fields. You control the grouping of credit-sensitive fields in Customizing for Financial Accounting. For information on how to maintain authorizations, see the online Implementation Guide.

    Automatic Credit Controls in SD

    You can specify automatic credit checks to meet your own credit management needs. The checks can be carried out at various times during the sales order cycle, from order receipt to delivery.

    Within delivery processing, you can further specify that a credit check is carried out when a delivery is created or when goods are issued. You specify data for automated credit control in Customizing for Sales and Distribution. For detailed information about how to enter this data, see the SD Implementation Guide.

    Defining an Automated Credit Check Credit and Risk Management in FI/SD

    According to your credit policy, you define risk categories and assign them to individual customers, along with specific credit limits. In addition, you define credit groups for document types, known as document credit groups. Document credit groups combine order types and delivery types for credit control purposes. You can define a credit check for any valid combination of the following data:

    • Credit control area
    • Risk category
    • Document credit group


    This check is defined for a particular credit control area and for sales orders where the customer has risk category RK2 (medium risk).

    System Response

    You can define for each checking rule whether the system reacts with an error or a warning. In the case of a warning, the system automatically enters a credit status in the document and saves the document. The status text describes the result of the credit check. It tells you, for example, if the document was blocked because the customer's credit limit was exceeded. Depending on the requirements you define, the document is blocked for further processing for reasons of credit.

    Different Types of Credit Checks Credit and Risk Management in FI/SD

    You can define any of the following credit checks for various combinations of credit control area, risk category, and document credit group:

    • Static Credit Limit Check

    The customer's credit exposure may not exceed the established credit limit. The credit exposure is the total combined value of the following documents:

    - Open orders

    - Open deliveries

    - Open billing documents

    - Open items (accounts receivable)

    The open order value is the value of the order items which have not yet been delivered. The open delivery value is the value of the delivery items which have not yet been invoiced. The open invoice value is the value of the billing document items which have not yet been forwarded to accounting. The open items represent documents that have been forwarded to accounting but not yet settled by the customer.

    • Dynamic Credit Limit Check with Credit Horizon

    The customer's credit exposure is split into a static part; open items, open billing, and delivery values (see above), and a dynamic part, the open order value. The open order value includes all undelivered or only partially delivered orders. The value is calculated on the shipping date and stored in an information structure according to a time period that you specify (days, weeks, or months). When you define the credit check, you can then specify a particular horizon date in the future (for example: 10 days or 2 months, depending on the periods you specify). For the purposes of evaluating credit, you want the system to ignore all open orders that are due for delivery after the horizon date. The sum of the static and dynamic parts of the check may not exceed the credit limit.

    • Maximum Document Value

    The sales order or delivery value may not exceed a specific value which is defined in the credit check. The value is stored in the currency of the credit control area. This check is useful if the credit limit has not yet been defined for a new customer. It is initiated by a risk category which is defined specifically for new customers.

    • Changes Made to Critical Fields

    The credit check is triggered by changes made in the document to values in any of the credit-sensitive fields. According to your Customizing settings, the system runs a check credit between changes or differences in the sales order data against the default values in the customer master record. Examples of such fields are terms of payment and fixed value dates.

    • Date of Next Review

    Uses the date of the next credit review as a trigger for an automatic credit check. If you process a sales order after a customer's next review date has already gone by, the system automatically carries out a credit check.

    • Overdue Open Items

    The relation between open items which are more than a certain number of days overdue and the customer balance may not exceed a certain percentage.

    • Oldest Open Item

    The oldest open item may not be more than a specified number of days overdue.

    • Maximum Number of Dunning Levels Allowed

    The customer's dunning level may only reach a specified maximum value.

    • User-Defined Checks

    If you want to carry out checks other than the standard checks, you can define your own checks in the appropriate user exits in Customizing for Sales.

    Subsequent Functions in Credit Checks Credit and Risk Management in FI/SD

    Use

    The result of each check is stored in the document and is used to calculate the overall status. The subsequent functions are the same for all the checks, namely credit limits, payment cards, export credit insurance, and documentary payments.

    Features

    Using the credit status, you can block the following functions during order processing:

    • Creating material reservations
    • Creating purchase requisitions
    • Creating production orders/planned orders
    • Creating delivery due indices
    • Printing order confirmations
    • Creating deliveries

    In Shipping you can use the credit status to block the following functions:

    • Picking
    • Packing
    • Posting goods issue
    • Printing delivery notes

    For particularly important or urgent credit problems, you can use output control to specify that electronic mail messages are automatically sent to the appropriate credit representative.

    Reviewing and Releasing Credit Holds Credit and Risk Management in FI/SD

    To ensure quick and effective processing of credit holds, the SAP R/3 System offers your credit personnel a working environment that can be tailored to your own needs. A credit representative can generate an overview list of credit holds to be processed and, depending on his or her authorizations, process each document accordingly.

    For more information on creating and processing work lists in Credit Management, see Worklists in Credit Management.


    As of Release 3.0D, you can stop all processing of a blocked sales document until it is released by the credit personnel. To do this, maintain variable message number 134 in the IMG.

    Work Lists for Credit Management

    Use

    Credit personnel can create overview lists of the credit holds (blocked sales orders) and deliveries that they are authorized to process. They can search for documents by entering the following selection criteria:

    • Credit control areas
    • Credit representative group
    • Next shipping date
    • Credit account
    • Risk category
    • Customer credit group

    Features

    Data in the Overview List

    The overview list is the basis for the credit representative's work. The most important data is as follows:

    • Next shipping date
    • Credit account (customer number or name)
    • Document number
    • Credit value (document value)
    • Currency
    • Credit limit used (in percentage)
    • Terms of payment
    • Risk category
    • Total status of credit check
    • Credit status (blocking reasons)
    • Date on which the document was created
    • Credit representative who entered data
    • Document value class

    Processing Blocked Sales and Distribution Documents

    The credit representatives can sort the overview list according to various criteria and can specify exactly how the list is displayed. They can then review the credit situation of any customer and, according to credit policy, decide how to continue processing the sales and distribution documents.

    The credit representative can do any of the following:

    1. Grant the credit limit and release the document.
    2. Do not grant the credit limit and cancel the document.
    3. Forward the blocked document to another representative.
    4. Recheck blocked documents.
    5. Redetermine the priority criteria for blocked documents. This enables you to give priority to and release several documents with a low document value until their credit limit is completely used up, instead doing so for a single document with a high document value that has already exceeded its credit limit.

    See also:

    Creating Work Lists for Credit Management

    Creating Work Lists for Credit Management

    Procedure

    1. In the initial screen, choose Accounting
    2. ® Financial accounting ® Accounts receivable and then Environment ® Credit management.
    3. Choose Exceptions
    4. ® Blocked sales docs.
    5. Enter your selection criteria. For example, you can select documents by credit control area, credit representative group, and other criteria, such as risk category.
    6. Choose Execute.

    The system displays a list of the blocked documents that meet your selection criteria.

    After you carry out a particular task (for example, releasing a document), the system displays a status in the column to the left of your list. In addition to the tasks mentioned above, you can also branch to related credit information, such as credit control area data, and reports that summarize customer-related credit histories.

    Credit control area: Europe (Euro)

    Credit representative: European credit office

    Customer Name

    Credit Limit

    Document

    Date

    Value

    Smith

    68%

    477

    June 14

    12000

    Smith

    68%

    567

    June 30

    11500

    Murray

    110%

    500

    June 30

    5000

    Result

    Processing Overview Lists

    After an overview list has been generated, the credit representative can review each document and choose to:

    • Release documents for further processing
    • Decline to extend credit
    • Re-run the credit check
    • Process documents
    • Branch to credit-relevant texts in the customer master or the document
    • Display the document flow
    • Forward the document for review by another credit representative group

    For more information, see Credit Management.

    Informing Credit Representatives Automatically Credit and Risk Management in FI/SD

    An interface to electronic mail provides fast communication of urgent credit problems. For example, each credit manager and representative can be defined as an internal mail partner. Urgent credit problems can be routed directly to the appropriate individual for immediate action. Credit personnel also have access to SAPscript word processing and can record credit-related text in either the document or in the scratch pad in the customer master. In addition, credit personnel have access to online credit, financial, and sales information systems.

    See also:

    For details on the information systems at your disposal, see the following online guides:

    • Sales Information System
    • Financial Information System

    Authorizations Credit and Risk Management in FI/SD

    You can set up authorizations for your credit representatives according to the following criteria:

    • How much of the available credit limit a particular customer has already used
    • The value of a particular sales order or delivery

    Authorization According to Credit Limit

    A representative is assigned to a credit representative group and can be authorized to process credit holds for a customer up to a certain level within the customer's credit limit.


    A representative may be authorized to process credit holds for customers within a particular risk category whose total credit exposure is below 80% of the allowed credit limit. For customers whose credit exposure is approaching 100% of their credit limit - in other words, becoming potentially critical - you may want to direct credit holds to senior credit personnel.

    Authorization According to Document Value

    Document value classes enable you to authorize credit representatives to process documents up to a certain value. You start by defining different classes to reflect the ranges of document value that occur in your business. You can then assign particular credit representatives to particular document value classes.


    A group of representatives may be authorized to process credit holds where the document value is less than 1,000 USD. However, only the group's manager may authorize credit for documents with values of over 1,000 USD. Sample document value classes are as follows:

    Credit control area

    Amount up to

    Document value class

    EURO

    100.00

    A01

    EURO

    1,000.00

    A02

    EURO

    10,000.00

    A03

    Settings for Credit Management and Risk Management: Overview

    The table below lists the most important settings that you make in Customizing for Credit Management. For a detailed description of the tasks involved in each case, refer to the Implementation Guide (IMG) documentation on the activity.

    Settings for

    Access via

    Menu path

    Creating credit data

    (Determine credit limit for customer)


    Accounting application

    Accounting ® Financial accounting ® Accounts receivable ® Environment ® Credit management ® Financial accounting data ® Master records ® Maintain

    Credit control area

    Credit control area

    Enterprise Structure Customizing

    Enterprise Structure ® Structure maintenance ® Definition ® Financial Accounting ® Maintain Credit Control Area


    Company code - Credit control area

    Enterprise Structure Customizing

    and

    Financial Accounting Customizing

    Enterprise Structure ® Structure maintenance ® Assignment ® Financial Accounting ® Assign Company Code to Credit Control Area

    and

    Financial Accounting ® Accounts Receivable and Accounts Payable ® Credit Management ® Credit Control Account ® Assign Permitted Control Areas to Company Code


    Company code - Credit control area

    Enterprise Structure Customizing

    Enterprise Structure ® Structure maintenance ® Assignment ® Sales and Distribution ® Assign Sales Organization to Company Code

    Subdividing the credit control area

    Credit representative groups

    Financial Accounting Customizing

    Financial Accounting ® Accounts Receivable and Accounts Payable ® Credit Management ® Credit Control Account ® Define Credit Representative Groups


    Credit representative

    Financial Accounting Customizing

    Financial Accounting ® Accounts Receivable and Accounts Payable ® Credit Management ® Credit Control Account ® Define Credit Representative Groups


    Risk category

    Financial Accounting Customizing

    Financial Accounting ® Accounts Receivable and Accounts Payable ® Credit Management ® Credit Control Account ® Define Risk Categories

    Sending a document with SAPoffice


    Sales and Distribution Customizing

    Sales and Distribution ® Basic Functions ® Credit Management/Risk Management ® Credit Management/Risk Management Settings ® Enter settings

    Defining credit limit checks for sales and distribution processing

    Automatic credit control

    Sales and Distribution Customizing

    Sales and Distribution ® Basic Functions ® Credit Management/Risk Management ® Credit Management ® Define Automatic Credit Control

    Risk management for receivables

    Define form of payment guarantee

    Sales and Distribution Customizing

    Sales and Distribution ® Basic Functions ® Credit Management/Risk Management ® Receivables risk management ® Define Forms of Payment Guarantee


    Define and assign payment guarantee procedures

    Sales and Distribution Customizing

    Sales and Distribution ® Basic Functions ® Credit Management/Risk Management ® Receivables risk management ® Define Forms of Payment Guarantee

    Risk Category Settings for Credit Management and Risk Management

    Enables the credit manager to classify customers according to commercial risk. Along with the document type, the risk category helps to determine which kind of credit check the system automatically carries out. For example, you may want to carry out stringent checks at order receipt for high risk customers, but waive a credit check for customers with a very strong payment history.

    Credit Representative Group Settings for Credit Management and Risk Management

    Defines a group of credit personnel - often a credit manager and a number of representatives - who are responsible for processing credit holds. Credit personnel use their group as one of the criteria for selecting overview lists of credit holds that need to be reviewed.

    Date of Next Review Settings for Credit Management and Risk Management

    When a credit representative reviews the credit situation of a particular customer, he or she can manually enter a date for the next credit review. You can specify the next review date as one of the criteria that trigger an automatic credit check. For example, if you process a sales order later than the next review date, the system displays an error message, warning, or blocks the order.

    Text Settings for Credit Management and Risk Management

    Provides a scratch pad where you can store credit-related text about a customer. The system indicates in the credit management status screen whether texts already exist for a customer.

    Blocked Settings for Credit Management and Risk Management

    Enables credit personnel to block a customer for all business transactions.

    External Credit Data Settings for Credit Management and Risk Management

    Allows you to enter credit data about a customer from external sources. The standard version of the SAP R/3 System is set up for Dun & Bradstreet data. For example, you can enter the D & B credit information number (DUNs number) that refers to the customer, as well as the D & B indicator and rating. You can also see how up-to-date the external information is by entering the date you last acquired data.

    Customer Credit Group Settings for Credit Management and Risk Management

    Your credit manager can freely define groups of customers according to your needs. For example, you can define groups of customers by industry sector, by country, or by any characteristic that will help you focus your credit management. Credit representatives can use these groups to help select credit holds for processing and to generate reports for statistical analysis.

    Thursday, June 12, 2008

    CIN-Canceling Excise Invoices

    Canceling Excise Invoices

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Other Movements ® Create/Change/Display ® Cancel excise invoice.
    2. Enter the internal document number.
    3. Choose Cancel excise invoice.

    A dialog box appears, asking you to confirm whether you want to delete the excise invoice.
    Choose Yes.

    CIN-Verifying and Posting Excise Invoices

    Verifying and Posting Excise Invoices

    Use

    You follow this procedure to verify that the information in an excise invoice that has already been created, and to post it once you are satisfied.

    Procedure

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Other Movements ® Posting.
    2. Enter the internal document number of the excise invoice.
    3. Choose Release to accounting.

    The system displays the excise invoice. The excise duty that is to be posted is displayed at the foot of the screen, which you can change if necessary.

    4. To access the balance utilization, choose .
    5. To display the balance available on the CENVAT accounts, choose Account balances.
    6. Save the excise invoice.

    The system generates the accounting documents.
    To print the excise invoice, choose .

    CIN-Creating Excise InvoiceS 12

    Creating Excise Invoices

    Use

    This is the procedure that you follow to create an excise invoice for the less common types of goods movement.

    Procedure

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Other Movements ® Create/Change/Display ® .
    2. On the selection screen, enter data as required, including:

    o Reference group box

    Specify which document you want to create the excise invoice for and which excise group it is for.

    o Details group box

    Specify the vendor or customer that you are sending the invoice to.

    3. Choose .

    If you entered an internal document number, the system copies the item details from it.

    4. Choose .
    5. Enter line items for each of the materials to be included in the excise invoice. For each item, enter the following data:

    o Material
    o Quantity
    o Unit of measure
    o Base value
    o Excise duty

    6. To pick the rate and amount from a specific excise invoice, choose Get excise invoice.
    7. Save the excise invoice.

    If you are using the one-step procedure, the system creates and posts an excise invoice. Otherwise, the system saves the information but does not make any postings: it now has to be verified.

    CIN-Other Outward Movements

    Other Outward Movements

    Use

    In the standard procedure for creating outgoing excise invoices (see Sales from Factories), the excise invoice is created with reference to a delivery note or an invoice. The SAP System also allows you to create an excise invoice with reference to various other documents, as follows:

    * Goods issue documents (for example, transfer postings)
    * Vendor excise invoices (for when you return faulty goods to a vendor, for example)
    * Factory excise invoice (for sales returns)

    In addition, you can create an excise invoice without reference to any document at all.

    Prerequisites

    You have specified, per excise group, whether you want to create these excise invoices in one or two steps (see below). You do so in the CIN Implementation Guide (IMG), by choosing Global Settings ® Excise Groups.

    You have also specified the maximum number of items allowed per excise invoice, in the CIN IMG, by choosing Global Settings ® Excise Registration IDs.

    Features

    Depending on your Customizing settings, you to create excise invoices in a single step or in two steps, as follows:

    * In the two-step procedure, one operator first creates the excise invoice, but no postings are made. A second operator then verifies that the invoice is correct and, if so, posts it.
    * If the operators are more experienced, you may want to use the one-step procedure, which is quicker, but more prone to error.

    In this case, when you create an excise invoice, the system automatically posts it in the background.
    Note that the functions for creating and canceling these excise invoices are different from those for other excise invoices.

    CIN-Verifying and Posting Excise Invoices Assigned to Delivery

    Verifying and Posting Excise Invoices Assigned to Delivery

    Use

    You follow this procedure to verify that the correct excise invoices have been assigned to a delivery. If everything is correct, you can then post the delivery.

    Prerequisites

    You have selected which excise invoices are to be assigned to the delivery and have posted the goods issue.

    Procedure

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Depot ® Create/Change/Display ® Delivery or Material Document ® Verify/Post.

    2. Enter the number of the delivery that you want to verify and choose .

    3. Make sure that the information is correct.
    4. Save the data.

    The system updates the posting flag in the RG 23D register.

    CIN-Assigning Excise Invoices to a Delivery

    Assigning Excise Invoices to a Delivery

    Use

    You follow this procedure to specify which excise invoices are to be assigned to a delivery from a depot (or other material document).


    You can also automate this procedure, using the batch selection program (J_1IJCHK), by making the appropriate Customizing settings in the Country Version India (CIN) Implementation Guide (IMG).

    Procedure

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Depot ® Create/Change/Display ® Delivery or Material Document ® RG 23D Selection.
    2. Enter the delivery document number or the material number and choose .
    3. Select the excise invoice you want.
    4. Choose .
    5. Choose Excise invoice.

    A list of excise invoices appears. These are the excise invoices at the depot with a balance quantity.

    The system also shows a list of the A certificates that can be used. You can pick up any of the A certificates, but they must be for the same excise invoice. You can only pick up an A certificate in its entirety. You cannot select part of an A certificate.

    6. Select the excise invoices that are relevant to the delivery.
    7. Specify what quantity to be used from each excise invoice.

    The system recalculates the excise accordingly.

    8. Go back to the item details screen.
    9. Save the data.

    Result

    The system creates an entry in register RG 23D and generates the depot excise invoice numbers.
    If you selected any A certificates, the system also generates additional entries in the RG 23D register. The system marks the original A certificates as updated, so that they cannot be used for any other removals.

    CIN-Creating Additional Excise Entries at Depots

    Creating Additional Excise Entries at Depots

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® For Depot ® Additional Excise Entry at Depot.

    2. In the Internal exc. inv. no. field, enter the internal excise invoice number at the depot along with the year, and choose .

    The system displays the information from the excise invoice which has already been created at the depot, including the excise group, vendor excise invoice number, ship from, and all the receipt against that excise invoice, highlighting the RG 23D folio and serial numbers.

    An excise invoice item can have multiple A certificates attached to it. The A certificates will have the same folio number as the original line item, but the serial numbers will be different. A hierarchy icon differentiates the additional lines for an item line.

    3. You can maintain the A certificate number, date, and additional BED, AED ,SED and CESS for a given RG 23D Folio.

    4. After entering an A certificate you cannot delete the A certificate from the system, but you can change it until it is picked up during removals from the depot.

    5. If some of the values in an A certificate are incorrect, you can make the values zero so that they do not have an impact on the final excise value.

    6. Once an A certificate is used for removals then it cannot be changed.

    7. Save additional excise entry.

    The system creates an entry in register RG 23D. Folio number generation must be active for you to make use of this supplementary invoice functionality at depot.

    CIN-Creating Excise Invoices for Direct Purchases

    Creating Excise Invoices for Direct Purchases

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® For Depot ® Create/Change/Display.
    2. In the Material document field, enter the goods receipt number and choose .

    The system displays the information from the goods receipt, for example, the sending plant, the excise registration, the range, the division, and the collectorate.

    You can also maintain the excise registration details for the ship-from party, as for with the vendor. The ship-from can be different from the vendor code. (The delivering plant can be maintained as a ship-from in the system. When a valid ship-from is entered, the excise registration details copied from the vendor will be overwritten by the ship-from excise registration details.)

    The ship-from registration details displayed can also be overwritten manually.

    The dealer's commercial invoice number can be stored in the vendor excise invoice number, as in this case the dealer himself will not have an excise invoice.

    3. Choose Details.

    The system copies the items from the goods receipt document. It also copies the vendor's excise invoice number and the serial numbers of the entries in the RG 23A, RG 23C, and personal ledger account (PLA) registers.

    4. Enter the internal document number of the excise invoice sent by the factory.
    5. Select an item and choose More documents to go the excise invoice details screen.

    In the case of direct purchases, there will not be any excise invoice in the system, so leave the internal document field blank. The vendor's invoice will show the details of the excise invoices through which excise has been paid for the item that is being dispatched. You can enter these details here.

    6. For each item, the chapter ID, excise base value, and excise duty amounts are defaulted from the purchase order. You can change them if there is any difference. Enter the excise amount paid and the receipt quantity. You also enter the Part II register serial numbers with which the excise duty was paid and the excise registration information from the original excise invoice.
    7. Go back to the item details screen.
    8. Save the excise invoice.

    The system creates an entry in register RG 23D. You can change the excise invoice as long as it has not been used in any sales.

    CIN-Canceling Excise Invoices

    Canceling Excise Invoices

    Use

    You follow this procedure in order to cancel an outgoing excise invoice. It reverses any excise duty accounted for.

    Procedure

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Excise JV ® Create ® Cancel exc. inv. or Indirect Taxes ® Sales and Outbound Movements ® Excise Invoice Create/Change/Display ® Cancel.
    2. Enter the number, year, and series group of the excise invoice that you want to cancel.

    A dialog box appears.

    3. Choose Yes.
    4. Save the adjustment posting.

    CIN-Excise Invoice Type 123

    Excise Invoice Type

    Use

    The excise invoice type denotes whether the excise invoice is for domestic use or for exports (exports under bond, exports not under bond, and deemed exports). It affects the amount of excise duty calculated, for example.

    Activities

    When you come to create an excise invoice for an export sale, if you need to change the excise invoice type, follow this procedure:

    1. Set the excise invoice type to Deemed, Bond, or No bond.
    2. Choose Calculate tax.

    The system recalculates the excise duty according to the excise invoice type (see below). To do so, it translates the assessable value into the local currency as at the excise invoice date. What happens next depends on the excise invoice type:

    o Deemed exports

    The excise to be paid will be zero. This information will be used when the Part II registers are downloaded.

    When the system creates the excise invoice, it numbers it as a domestic excise invoice.

    o Exports under bond

    The system sets the excise duty to zero and generates an outgoing excise invoice. It does not generate any entries for the Part II register.

    The excise invoice is created with an export excise invoice number.

    o Exports not under bond

    The system applies the tax code defined in the CIN Implementation Guide (IMG) and calculates the excise duty as normal.
    Again, the excise invoice is created with an export excise invoice number.

    CIN-Creating Excise Invoices 1234

    Creating Excise Invoices

    Use

    This is the standard procedure that you follow to create an outgoing excise invoice. You create the excise invoice from a reference document: either an invoice, a pro forma excise invoice, or a billing document.

    Prerequisites

    You have:

    * Customized the rounding-off indicator for sales transactions

    * Specified which exchange rate type to use for export invoices

    You make both of these settings in the Country Version India Implementation Guide (CIN IMG), by choosing Global Settings ® Company Settings.

    Procedure

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Sales Order ® Outgoing Excise Invoice Create/Change/Display ® …

    o If you want to create the excise invoice with reference to a pro forma excise invoice or commercial invoice, choose Excise Invoice ® Create.
    o If you want to create the excise invoice with reference to a delivery note, choose Exc. inv. for delivery ® Create.

    2. Enter the number of the reference document.

    If you do not know the document number, you can search for it by choosing Due list.

    3. Choose .

    The excise invoice screen appears. The header data is displayed at the top; the line items, which the system has copied from the reference document, are displayed at the bottom.

    4. Enter header data as required.

    5. To check if the utilization is done properly and the document is ready for posting, choose .

    6. To enter texts for the excise invoice, choose .

    The text IDs for the outgoing excise invoice are created using the Country Version India (CIN) Implementation Guide (IMG).

    7. To display the balances of the CENVAT accounts, choose Balances.

    8. To display the utilization details, choose .

    Save the excise invoice.

    CIN-Printout of Excise Invoices

    Printout of Excise Invoices

    Use

    You use this report to print outgoing excise invoices.

    Prerequisites

    You have:

    * Customized the output for billing documents

    You can do so in Customizing for Sales and Distribution (SD), by choosing Basic Functions ® Output Control ® Output Determination ® Output Determination Using Condition Technique ® Maintain Output Determination for Billing Documents.

    You can use output type J1I0 and the SAPscript form J_1I_EXC_INVOICE. The driving program is J_1IEXCP. The output determination has been set up for the billing document that is used as the excise invoice reference.

    * Maintained condition records for the output

    You can do this in Logistics ® Sales and Distribution ® Master Data ® Output ® Billing Document ® Create. This ensures that output gets copied to all the excise reference documents.

    Features

    To access this function, from the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Sales Order ® Print.

    Selection

    On the selection screen, enter the numbers of the excise invoices. If any of these are reprints, select Incl. printed excise inv.

    Output

    From the list of excise invoices, you have the following options:

    * To display an excise invoice, select it and choose .
    * To print an excise invoice, select it and choose .

    CIN-Creation of Excise Invoices in Batches

    Creation of Excise Invoices in Batches

    Use

    You use this report to create excise invoices for batches of invoices and batches of pro forma excise invoices, instead of creating each one individually (see Sales from Factories). The excise invoices are then created in the background.

    Features

    To access the report, from the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Sales Order ® Batch Utilization.

    Selection

    On the selection screen, specify which billing documents (invoices or pro forma excise invoices) you want to create excise invoices for.

    Output

    A list of commercial invoices and pro forma excise invoices appears, which you process as follows:

    1. If you want to see how much credit is available on your CENVAT accounts – and if there is enough to cover the excise duty that you will incur when you create the excise invoices – choose Account balances.

    A dialog box appears with the following information:

    o The amounts under Balances are the amounts available on the CENVAT accounts.
    o The amounts under Utilization are the total amounts of the excise duties to be levied.
    o If the CENVAT accounts do not contain enough credits to cover the excise duties, the amount short is shown under Deficit.

    When you know which documents you want to process, select them and choose Batch utilization.

    CIN-Automatic Creation of Excise Invoices

    Automatic Creation of Excise Invoices

    Use

    The SAP System can automatically create an outgoing excise invoice for you immediately you post a commercial invoice (or a pro forma invoice) for a customer sale. This function applies to excise invoices for sales from factories only.

    Prerequisites

    To activate this function, in the Country Version India (CIN) Implementation Guide (IMG), make the following settings:

    * Under Global Settings ® Excise Groups, select Create EI.

    This activates the automatic creation function.

    * Under Sales and Distribution ® Utilization Determination.

    Here, you specify which CENVAT accounts the system is to post the different types of excise duty to.

    * Under Sales and Distribution ® Excise Group–Series Group Determination.

    Here, you specify which excise group and series group the excise invoices are to be created for.

    Features
    When you post an invoice, the system creates an excise invoice. All the information that it needs to create the excise invoice is provided either by the invoice or by the Customizing settings that you have made in Sales and Distribution. It also determines the excise invoice type automatically by means of a user exit.

    CIN-Sales from Factories

    Sales from Factories

    Purpose

    This process describes how the SAP System handles the sales process, allowing for the creation of excise invoices, which you have to send with each delivery that is subject to excise duty. There are two scenarios, depending on whether you want to send the commercial invoice along with the delivery or at a later date.

    Prerequisites

    In order for the system to be able to copy the information from document to document, you must have set up the copying control procedures in Customizing for Sales and Distribution (SD). This differs according to when you want to send the commercial invoice:

    * Along with the delivery

    In this case, the document flow would be OR (standard sales order type) – LF (standard delivery type) – F2 (invoice).

    * At a later date

    The document flow would be OR – JF (delivery type, a copy of LF) – JEX (pro forma billing document type, a copy of document type F8) – F2.

    In addition, you must also have maintained the settings in the Country Version India (CIN) Implementation Guide (IMG), by choosing Global Settings ® Assign Excise Invoice Billing Type to Delivery Type.

    A sample pricing procedure, JFACT, is provided for this sales procedure.

    Process Flow

    1. The sales clerk creates a sales order, following the standard procedure.

    There are special procedures for:

    o Customers in possession of exemption forms
    o Exports

    2. The shipping clerk creates a delivery, again, following the standard procedure.

    On the initial screen, you set the appropriate delivery type (see above).

    3. In the warehouse, the storeperson issues the goods.

    The system only allows users to create a pro forma excise invoice if the delivery is complete, so as to prevent them from creating multiple pro forma excise invoices.

    4. What you do at this stage depends on whether you want to send the commercial invoice along with the delivery or whether you want to invoice the customer later.

    o If the invoice is to be shipped with delivery, the shipping clerk:

    1. Creates an invoice, following the standard procedure.
    2. Creates an excise invoice from the invoice

    o If the invoice is to be sent on at a later date, the shipping clerk:

    1. Creates the pro forma excise invoice

    The pro forma excise invoice is only required for technical purposes and is not sent to the customer. The system does not make any accounting postings at this stage.

    2. Creates an excise invoice from the pro forma excise invoice

    In both these cases, the system creates an accounting document to post the excise duty to a clearing account.


    Instead of creating excise invoices manually, you can also have the system create them automatically. Alternatively, you can create them in batches.

    5. You ship the goods.
    6. When the time comes to invoice the customer, you create the invoice, following the standard procedure.

    Irrespective of the number of excise invoices that you have issued, you can combine the delivery items in a single invoice (if the standard requirements are met).

    CIN-Excise Invoice (Outgoing)-Structure

    Structure

    Numbering of Excise Invoices

    Outgoing excise invoices have two numbers: an internal document number, which is assigned immediately you create an excise invoice; and an excise invoice number, which is not assigned until you have verified and posted it.

    As far as the excise invoice number is concerned, you have to number your outgoing excise invoices in sequential order, starting each year on 1 April. You must notify the excise authority of the jurisdiction of the invoicing location. The serial number must be printed on each page of the excise invoice.

    Each number range is governed by a series group. You must create at least one series group in order to be able to number the excise invoices. If you need more than one number range, you must create the corresponding number of series groups. You do so in the CIN Implementation Guide (IMG), by choosing Global Settings ® Series Groups.

    Number of Line Items Per Excise Invoice
    Some states allow you to include only a limited number of items for each page of an excise invoice (for example, if the excise invoices are to be printed on prenumbered forms). You can customize the system so that it prints the excise invoice accordingly, in the CIN IMG, by choosing Global Settings ® Excise Registration IDs.

    CIN-Excise Invoice (Outgoing)

    Excise Invoice (Outgoing)

    Definition

    The document that acts as the proof of payment of excise duty and is required for the customer to take CENVAT credit on the item.

    Use

    In the SAP System, there are three different procedures for creating excise invoices

    * Sales direct from the factory

    This procedure is for when you sell manufactured goods straight from the factory at which they were produced, in which case you levy excise duty when the goods leave the factory on their way to the customer.

    If, when you send the goods to the customer, you enclose the commercial invoice, you create the excise invoice with reference to the commercial invoice. If you want to send the commercial invoice after you have dispatched the goods, however, you create the excise invoice with reference to a pro forma commercial invoice. For more information about these procedures, see Sales from Factories.

    As well as creating excise invoices individually, you can also create them in batches (see Creation of Excise Invoices in Batches).

    * Sales from depots

    A depot is a site at which the goods are stored, away from the factory at which they were produced. In this procedure, you have to levy the excise duty when you transfer the goods from the factory to the depot, and then make sure this is passed on to the customer when it makes a purchase. For more information, see Sales from Depots.

    * Sales (other goods movements)

    Some other goods movements may also require you to create an excise invoice with reference to other documents. The SAP System offers separate functions for these purposes (see Excise Invoices (Outgoing) for Other Movements).

    CIN-Export-Oriented Units

    Export-Oriented Units

    Use

    Any sales that you make to export-oriented units (EOUs) require special treatment by the SAP System.

    Prerequisites

    You have maintained a zero-rate excise duty indicator for customers that qualify as 100% EOUs.

    Activities

    When you come to create the excise invoice, the excise value is zero in the pro forma excise invoice document. No excise duty is debited to the CENVAT account, and so no accounting entries are generated. However, the sale is marked as a deemed export, and the system generates an outgoing excise invoice.
    Even though the excise duty is zero, when you print the excise invoice, the system calculates the duty for the purposes of printing.

    CIN-Plant Master (Excise Data)

    Plant Master (Excise Data)

    Definition

    The part of the plant master record that contains information relating to Indian excise duty.

    Use

    In conjunction with other data, this data is used to calculate excise duty on various transactions.

    To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes ® Master Data ® Excise Rate Maintenance, and then select the following options described below.

    Structure

    The excise part of the plant master is divided into the following screens:

    Excise Indicator for Plant

    On this screen, you enter your plants' tax registration numbers, which are used for various forms of correspondence and reports:

    * Central sales tax (CST) number
    * Local sales tax (LST) registration number
    * Permanent account number (PAN)

    In order for the system to be able to calculate which rate of excise duty to apply on purchases for this plant, you must also assign it a plant excise duty status (for more information about how this works, see Determination of Excise Duty Rates).

    Excise Indicator for Plant and Vendor

    On this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).

    Excise Indicator for Plant and Customer
    On this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).

    CIN-Customer Master (Excise Data)

    Customer Master (Excise Data)

    Definition

    The part of the customer master record that contains information relating to Indian excise duty.

    Use

    In conjunction with other data, this data is used to calculate excise duty on various transactions.

    To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes ® Master Data ® Excise Rate Maintenance, and then select the following options described below.

    Structure

    The excise part of the customer master contains the following information:

    Customer Excise Details

    On this screen, you enter your customers' tax registration numbers, which are used for various forms of correspondence and reports:

    * Excise registration number (and the range, division, and collectorate in which this is located)
    * Central sales tax (CST) number
    * Local sales tax (LST) registration number
    * Permanent account number (PAN)

    In order for the system to be able to calculate which rate of excise duty to apply on sales to the customer, you must also assign it a customer excise duty status (for more information about how this works, see Determination of Excise Duty Rates).

    Excise Indicator for Plant and Customer
    On this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).

    CIN-SD-INTRO

    Sales and Distribution (SD)

    Purpose

    Country Version India (CIN) contains a number of enhancements to standard Sales and Distribution (SD) functions that allow you to handle local requirements, in particular excise duty.

    Features

    In Country Version India, (CIN), this component handles sales processes as found in India. In addition to the generic functions, it allows you to:

    * Handle CENVAT in your sales processes

    The system calculates excise on your sales and creates excise invoices as required and makes the appropriate postings to your CENVAT accounts.

    It covers sales from factories, sales from depots, and offers functions for other types of goods movements; it also covers sales to export-oriented units and export sales.

    * Record concessional and exemption forms sent to you by your customers

    Make adjustment postings to your CENVAT accounts

    CIN-Displaying CENVAT Account Balances

    Displaying CENVAT Account Balances

    To display the balances of your CENVAT accounts, choose Balances.
    The system displays the balances only of the CENVAT accounts that are affected by your G/L postings.

    CIN-Specifying Which CENVAT Accounts to Adjust

    Specifying Which CENVAT Accounts to Adjust

    Use

    When you make an adjustment posting, you have to specify which CENVAT accounts are to be adjusted.

    Prerequisites

    You have specified in the Country Version India (CIN) Implementation Guide (IMG) whether you want the users to be able to add extra debit accounts (see below), by choosing Global Settings ® Company Settings.

    Procedure

    1. Choose Determine G/L accounts.

    A dialog box appears that shows how much will be posted to which G/L accounts. The accounts that are displayed depend on the excise group and the CENVAT account that you entered on the selection screen.

    2. Add another account, if you need to, and adjust the other postings so that the credits and debits match.
    3. Enter a business area and cost center, if necessary.

    CIN-Assigning Excise Invoices to Line Items

    Assigning Excise Invoices to Line Items

    Use

    When you make an adjustment posting, you follow this procedure if you want to specify the original excise invoice associated with a line item.

    Procedure

    1. Select the line item that you want and choose Get excise invoice.

    The system displays a list of all the excise invoices that you have posted from this vendor for this particular material.

    2. Select the excise invoice that you want and choose .

    The system:

    o Enters the excise invoice document number in the Ref. doc. field (Reference document).
    o Calculates how much of the excise duty from the excise invoice should be apportioned to the line item and enters it in the excise duty fields.


    If you then overwrite these amounts, you should also overwrite the reference document number with an explanatory text, since there is no point in maintaining the link to the reference document anymore.


    You have a line item with ten plates of glass that you have broken and are to be scrapped. You have three excise invoices from the same vendor to choose from. You pick one for 20 plates of glass with BED at INR 200. The system automatically apportions INR 100 to the line item that is to be reversed.

    CIN-Making Adjustment Postings for Other Transactions

    Making Adjustment Postings for Other Transactions

    Use

    You follow this procedure if you want to make an adjustment posting that does not fall into any of the other categories of adjustment offered by this function. You can only use an external document as your reference document.

    Procedure

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Excise JV ® Create ® Other adj.
    2. Enter data as required, including:

    o Document number

    Enter the number of the external document that you want to refer to.

    o CENVAT account selection group box

    Specify which account is affected by the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment.

    3. Choose .

    The system displays the information from the material document.

    4. Adjust the posting date as necessary.
    5. Enter the amount of excise duty in either of the following ways:

    o To enter line items for different materials and the excise duty accordingly, choose and enter the line items in the table.
    o To enter the excise duty only, choose and enter the excise duty in the totals fields at the foot of the screen.

    Specify which G/L accounts are to be posted to.

    CIN-Canceling Excise Invoices

    Canceling Excise Invoices

    Use

    You follow this procedure in order to cancel an outgoing excise invoice. It reverses any excise duty accounted for.

    Procedure

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Excise JV ® Create ® Cancel exc. inv. or Indirect Taxes ® Sales and Outbound Movements ® Excise Invoice Create/Change/Display ® Cancel.
    2. Enter the number, year, and series group of the excise invoice that you want to cancel.

    A dialog box appears.

    3. Choose Yes.
    4. Save the adjustment posting.

    CIN-Making Adjustment Postings for Money Transferred to PLA

    Making Adjustment Postings for Money Transferred to PLA

    Use

    You follow this procedure to make an adjustment posting when you transfer money to your personal ledger account (PLA).

    Prerequisites

    You have already transferred the money to your PLA at the bank, using a TR6 challan, and have posted the corresponding accounting document.

    Procedure

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Excise JV ® Create ® TR6 challan.
    2. Enter data as required, including the document number.

    You can enter either the challan number or the number of the accounting document.

    3. Choose .

    If you entered the accounting document number, the system displays the information from it.

    4. Enter the amounts against the accounts that you require.
    5. Save the adjustment posting.

    CIN-Making Adjustment Postings for Additional Excise Paid by Vendors

    Making Adjustment Postings for Additional Excise Paid by Vendors

    Use

    You follow this procedure if a vendor has increased the amount of excise duty that it originally charged you and you want to debit the difference to your CENVAT account.

    Procedure

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Excise JV ® Create ® Additional excise.
    2. Enter data as required.

    In the Document number field, enter then number of the document sent to you by the vendor.

    3. Choose .
    4. Adjust the posting date as necessary.
    5. Enter the amount of excise duty in either of the following ways:

    o To enter line items for different materials and the excise duty accordingly, choose and enter the line items in the table.
    o To enter the excise duty only, choose and enter the excise duty in the totals fields at the foot of the screen.

    6. If the duty qualifies as countervailing duty (CVD):

    1. Select CVD applicable.
    2. Enter the CVD amount in the BED amount field.

    7. Specify which G/L accounts are to be posted to.

    Save the adjustment posting.

    CIN-Making Adjustment Postings for Materials Not Used in Production 2

    Making Adjustment Postings for Materials Not Used in Production

    Use

    You follow this procedure if you have not used a material in the production process and want to reverse the excise duty debited to your CENVAT account.

    Procedure

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Excise JV ® Create ® Matl non-prod.
    2. Enter data as required, including:

    o Document number

    Enter the number of the material document that the adjustment posting is to refer to.

    o CENVAT account selection group box

    Specify which account is affected by the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment.

    3. Choose .

    The system displays the information from the material document.

    4. Adjust the posting date as necessary.
    5. Adjust the excise duty for each line item either:

    o Manually
    o By assigning the line item to an excise invoice

    6. Specify which G/L accounts are to be posted to.

    Save the adjustment posting.

    CIN-Making Adjustment Postings for Materials Not Used in Production

    Making Adjustment Postings for Materials Not Used in Production

    Use

    You follow this procedure if you have not used a material in the production process and want to reverse the excise duty debited to your CENVAT account.

    Procedure

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Excise JV ® Create ® Matl non-prod.
    2. Enter data as required, including:

    o Document number

    Enter the number of the material document that the adjustment posting is to refer to.

    o CENVAT account selection group box

    Specify which account is affected by the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment.

    3. Choose .

    The system displays the information from the material document.

    4. Adjust the posting date as necessary.
    5. Adjust the excise duty for each line item either:

    o Manually
    o By assigning the line item to an excise invoice

    6. Specify which G/L accounts are to be posted to.

    Save the adjustment posting.

    CIN-Making Adjustment Postings for Scrap

    Making Adjustment Postings for Scrap

    Use

    You follow this procedure if you have scrapped a material and want to reverse the excise duty debited to your CENVAT account.

    Procedure

    1. From the SAP Easy Access screen, choose Indirect Taxes ® Excise JV ® Create ® Matl write-off.
    2. Enter data as required, including:

    o Document number

    Enter the number of the document that you used to scrap the material.

    o CENVAT account selection group box

    Specify which account is affected by the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment.

    3. Choose .

    The system displays the information from the material document.

    4. Adjust the posting date as necessary.
    5. Adjust the excise duty for each line item either:

    o Manually
    o By assigning the line item to an excise invoice

    6. Specify which G/L accounts are to be posted to.

    Save the adjustment posting.

    CIN-CENVAT Adjustment Postings

    CENVAT Adjustment Postings

    Use

    You use these functions if you need to make an adjustment posting to any of your CENVAT accounts. You can make adjustment postings to account for:

    * Scrap
    * Materials that you have not used in production
    * Additional excise paid by vendors
    * Money that you have transferred to your personal ledger account
    * Other transactions

    You can also use this function to cancel excise invoices.

    Features

    Each of the different types of adjustment postings are documented separately. However, they all work on the same principle, as follows.

    Reference Document

    On the initial screen of the transaction, you specify the reference document, that is, the document which the adjustment posting is to refer to – either an internal document, such as a material document or a subcontracting challan – or an external document, such as an incoming excise invoice.

    You also specify which registers are affected by the posting. In many cases, the adjustment will have to be remitted to the authorities on a fortnightly basis. The adjustment will then be included when you run the Remittance of Excise Duty Fortnightly report. If the adjustment has to be remitted immediately, you specify which register is affected.

    Excise Details

    When you proceed to the detail screen, the system automatically shows the line items from the reference document, if it is an internal document. You specify how much excise duty is to be adjusted and which CENVAT accounts the adjustment posting is to be made to.

    When you edit the excise details, there are a number of functions that are available, depending on the type of adjustment posting:

    * Assigning excise invoice to line items
    * Specifying which G/L accounts are to be adjusted
    * Displaying balances of CENVAT accounts

    When you save your changes, the system creates an accounting document to make the appropriate postings.

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