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).