PAÍS VERSIÓN INDIA, PAYS VERSION INDE, 国家版印度 CIN Domain Basic concepts FI consultant steps in CIN configuration CIN VS Service Tax CIN VS TDS CIN MM Configuration Steps CIN SD Configuration Steps J1I9 CIN Number range objects Master Data for CIN MM CYCLES DEPOT PLANTS CIN TABLES CIN Forms CIN NOTES CIN ACCOUNTING ENTRIES UTILIZATION CIN/VAT/TDS/SERVICE -TAX List of Reports TAXINN VS TAXINJ CAPITAL Procurement in SAP SD CYCLES Miscellaneous Topics

1. SAP
SAP
HARI KRISHNA GUNTUPALLI
SAP FI-CIN MADE EASY

2. Summary :
This document will help people to understand FI- CIN , MM- CIN , SD- CIN
Configuration i.e. Country version India. The document will simplify Integration of
CIN settings to them and single document covers all the CIN Scenarios.
Prepared By:- Hari Krishna Guntupalli
Created On : - 04.10.2015
Table of contents Country version India :
CIN Domain Basic concepts.................................................................... 3
FI consultant steps in CIN configuration...........................................28
CIN VS Service Tax ...................................................................................32
CIN VS TDS ...................................................................................................51
CIN MM Configuration Steps ..............................................................52
CIN SD Configuration Steps .................................................................53
J1I9 CIN Number range objects...........................................................54
Master Data for CIN..................................................................................56
MM CYCLES..................................................................................................57
DEPOT PLANTS...........................................................................................58
CIN TABLES ...............................................................................................59
CIN Forms ...................................................................................................59
CIN NOTES....................................................................................................60
CIN ACCOUNTING ENTRIES ................................................................ 60
UTILIZATION ...............................................................................................67
CIN/VAT/TDS/SERVICE -TAX List of Reports ............................68
TAXINN VS TAXINJ ...................................................................................70
CAPITAL Procurement in SAP ................................................................75
SD CYCLES ....................................................................................................77

3. Miscellaneous Topics ...............................................................................86
CIN Domain Basic concepts :
Useful domain Books :
1) Central Excise & Central Customs Books - Taxmann's
2) Central Excise & Central Customs Books - Kalyani Publishers
FI -CIN
MM-CINSD-CIN

24. CENVAT System: CENVAT is applicable on central excise duty. In Central
Excise the manufacturer has to pay tax on the value of goods manufactured
but taking the VAT system he can claim the tax credit i.e., CENVAT credit of
the tax paid on:
1. Input goods used in manufacture
2. Input services used in manufacture.
It should be noted that no CENVAT credit is available if:
1. Final production is exempt from excise duty.
2. The document showing proof of payment of duty on input is not
available.
It is worth to note that duty paid on input cannot be enchased / refunded it
can
only be adjusted against duty on finished goods.
Input output relation: There need not be an input –output relation for
claiming CENVAT credit, e.g., duty paid on automobile components used in
automobile manufacturer can be adjusted against duty on textile production.
CENVAT credit on Capital Goods: Any duty paid on machinery and plant,
spare parts of machine, tools, dies etc. used in manufacture can also be
adjusted against duty payable on production. However, up to 50% credit is
available in current year and balance in subsequent financial year.
Motorcar is not a capital asset and for the purpose of CENVAT Credit for all
manufacture. However it may be taken as capital good for service tax in
case
of service provider uses motor car for service providing purpose e.g.,
Courier,
tour operator, rent-a-cab, cargo, outdoor caterer, pandal and shamiana
operator, and goods transport agency.
Excise Opening Balance Uploading
RG23A and RG23C Part I Registers updation

25. 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.
Using this activity, you can update the receipts of into RG23A Part I and
RG23C Part I, Registers by select the radio button option.
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
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.
Using this activity, you can update the receipts of into RG23A Part II and
PLA Registers by select the respective register button option.
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

26. Access the transaction choosing one of the following navigation options
SAP R/3 menu Tools  ABAP Workbench  Development  ABAP
Dictionary
Transaction code SE11
1. On the ABAP Directory: Initial Screen, make the following entries.
2. Choose J_2IACCBAL against Database Table filed and choose Display (F7) icon to
enter into table.
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
To Initial balances clearing a/c
You can choose any appropriate accounting entry which is suitable to client.
3. 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 01.01.2004 to 31.01.2004 as you have given closing
balance as on 31.12.2003.
4. 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

27. 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
1. Access the transaction choosing one of the following navigation options:
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.
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
To Initial balances clearing a/c
You can choose any appropriate accounting entry which is suitable to client.
4. 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 01.01.2004 to 31.01.2004 as you have given closing
balance as on 31.12.2003.
5. Extraction is possible only if there are some transactions (actual incoming excise

28. 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
1. Access the transaction choosing one of the following navigation options:
SAP R/3 Menu Indirect Taxes  Excise JV  Create
Transaction code J1IH
Result
System issues a message successfully created with reference of the documents
created. Following Accounting entry is pass
Itm PK Account
Account short
text Assignment Tax code Amount
1 5024930000CENVAT hold V0 -200
2 4024930000CENVAT hold V0 100
3 4024850000CENVAT Cap BED 20040603V0 100
RG23C (Part II) is credited for Rs. 100.00
FI consultant steps in CIN configuration:
1.Activate Country version India for Specific Fiscal Years

29. 2.Check calculation procedure
3.Assign country to calculation procedure
4.Check and change settings for tax processing
5.Define tax accounts
6.Assign tax code to Non taxable Transactions
7.Maintain excise Registrations
8.Maintain company code settings
9.Maintain Plant settings
10.Maintain Excise Groups
11.Maintain serious Groups
12.Maintain excise duty indicators
13.Maintain postal Addresses
14.Select tax calculation procedure
15.Maintain excise defaults
16.Define tax code for Purchasing documents
17.Assign tax code to company codes
18.Classify condition types
19.Define G/L Accounts for taxes
20.Specify excise accounts per excise transaction
21.Specify G/L accounts per Excise Transaction
22.Assign billing types to Delivery types
23.Maintain default excise groups and series groups
24.Utilization Determination
25.Maintain Minimum balance for excise accounts
26.Specity Sap script forms

30. 27.Number Ranges
28.Excise Rate Maintenance
29. GL Master creation like Cenvat hold a/c , Cenvat clearing a/c , Cenvat suspense
a/c ,PLA A/C, VAT Payable a/c , RG23A BED A/C, RG23C BED A/C, VAT
Payable a/c , VAT Receivable a/c .
30. Assignment of accounts for automatic postings T code: VKOA ( EX: CENVAT
A/C SUSPENSE )

31. CIN VS Service Tax :
Service Tax consulting note for the TAXINN Customers:
Requirement:
The requirement for the Service tax credit in India is that the
Service tax credit can be availed only after making the Vendor
payment to the extent of Payment made to Vendor. Similarly the
Service tax should be paid only when you receive the Payment from
the Customer.
Proposed Service tax Solution:
In the existing solution released in note 779512 will accumulate the
Service tax credit in the Interim account and the Service tax
payable will account in the interim account. Please refer the SAP
note 921634 and do the Customizing Changes and code correction
mentioned in the SAP note. You will have to create the GL accounts
with the controls mentioned in the SAP note 921634. The Service
tax credit can be availed when you run the Report J_1I_RFUMSV50
(RFUMSV50 for ECC Customers) for the Payment made Invoices.
The following additional Customizing is required for the Sales
transactions.
We assume that the Condition types JSE4 AR Service tax and JES4
AR ECS on Service tax has been created in SD Pricing condition and
assigned to the SD Procedure with the account key VS9 AR Service
tax and VS0 AR ECS on Service tax created and assigned in the SD
Pricing procedure for the condition types JSE4 and JES4
respectively.
1. Customizing Changes:

32. 1.1 Condition type:
Create two new condition type JSE4 AR Service tax & JES4 AR ECS
on Service tax. Copy the Condition type JIN1 & JIN2 as JSE4

33. &. Use transaction code OBQ1 for creating the new condition type.
Kindly use the access sequence MWST and not JTAX.

34. 1.2 Account Key:
Define two new account keys VS9 & VS0 same as the SD account
key created. If you are using different account in SD Pricing
procedure then you will have to create the same account key here.
Customizing Path: SPRO Financial Accounting Tax on
Sales/Purchases Basic Settings Check and Change Settings for Tax
Processing

35. 1.3 Tax Procedure Change:
Include the two conditions JSE4 and JES4 in the TAXINN
Procedure.
Customizing Path: SPRO Financial Accounting Tax on
Sales/Purchases Basic Settings Check Calculation Procedure Define
Procedures

36. 2. GL Account Creation:
Kindly create 4 GL accounts with the following properties. Two GL
accounts should be created for the Interim account of Service Tax
and ECS on Service Tax and Two GL account for the Final GL
account.
2.1 Interim GL Account Properties:
Only Balance in Local Currency should not be activated. The Tax
Category should be ‘>’. The open item management and Line item
display indicator should be active.

38. 2.2 Final GL Account Properties:
Only Balance in Local Currency should not be activated. The Tax
Category should be ‘>’. The open item management should not be
active.

39. 3. Tax Code Creation:
You have to create two tax codes for the Service tax setting. One
tax code for posting into the Interim account when you carry out
the Sales transactions. This tax code will not be having any rates
maintained in FTXP.

41. The final tax code should have the rates maintained.

42. Assign the Final tax code to the interim tax codes as Target tax
code through FTXP Properties.
4. GL account Assignment:
Assign the Interim GL account for the Interim tax codes and Final
GL accounts to the Final tax codes.
Customizing Path: SPRO Financial Accounting Tax on
Sales/Purchases Posting Define Tax Accounts
Activate the tax code indicator for the Account key.

43. Assign the Posting Key:

44. The Service tax Interim Tax code is M3 which will post the value
into the interim GL account 24820010. The Service tax Final tax
code is M4 which has been assigned with the Service tax Final GL
account 24820012. When we receive the Payment from the
Customer the Service tax payable will be moved from Interim
Account (24820010) to Final Account (24820012).
The Same setting should be carried for the ECS on Service tax
account key also.
Activate the tax code indicator for the Account key.

45. Assign the Posting Key:

46. The ECS on Service tax Interim Tax code is M3 which will post the
value into the interim GL account 24820011. The ECS on Service
tax Final tax code is M4 which has been assigned with the Service
tax Final GL account 24820013. When we receive the Payment from
the Customer the Service tax payable will be moved from Interim
Account (24820011) to Final Account (24820013).
5. SD Condition Record:
Create the condition record for the Service tax and ECS on Service
tax with 12% and 2% with the Interim Tax Code M3 assigned. If
you have already gone live with the Service tax then you may
ensure that the Interim tax code is assigned.

47. The condition record shown here is only for the reference and it is
not expected to have the same access table. You can have your
own access table to determine the Service tax and ECS on Service
tax rates but ensure that the Interim tax code is assigned.

48. 6. Process flow for Normal Sales Cycle:
The Sales process is like this, you will have Sales order Billing or
Sales Order Delivery Billing.
When you generate the billing document the Service and ECS on
Service tax payable will be posted into Interim GL account.

49. Carry out the In-coming Payment receipt through the transaction F-28.
Once you create the In-coming Payment then you can run the report
J_1I_RFUMSV50 (RFUMSV50 for ECC Customers) for transferring the Payable
from Interim to Final Account.
Accounting Entries
 Accounting Entry after Vendor Invoice Verification
Accounts Payable (Vendor) Cr.
GR/IR Clearing Account Dr.
Service Tax Receivable Account Dr.
Education Cess on Service Tax Receivable Account Dr.
Sec.Education Cess on Service Tax Receivable Account Dr.
 FI-JV after Vendor Payment to avail Service Tax Credit
Service Tax Availed Account Dr.

50. SAP- CIN- J1ILN Page 51
Education Cess on Service Tax Availed Account Dr.
Sec.Education Cess on Service Tax Availed Account Dr.
Service Tax Receivable Account Cr.
Education Cess on Service Tax Receivable Account Cr.
Sec.Education Cess on Service Tax Receivable Account Cr
Service Tax important Related Notes:
1283867 Business Place for Service tax in RE-FX for India
1029613 RE-FX Country Version for India
921634 Service tax India: Transfer from Interim to Final Account
836249 Data Dictionary Changes for Service tax Registration No.
796169 Transaction J2IUN CENVAT Utilization with Service Tax Credit
795492 Transaction J2IUN CENVAT Utilization with Service Tax Credit
778976 Configuration for Service tax (MM and SD)
CIN VS TDS:
The basic withholding tax settings for India (Country India Version) will include the following
sub processes which are commonly used within the main process.
 Defining withholding tax keys
 Defining branch offices (Section codes)
 Defining withholding tax type invoice & payment posting
 Defining withholding tax type for ECESS at Invoice posting
 Maintaining surcharges
 Defining withholding tax codes
 Defining GL accounts to post the withholding tax
 Maintenance of number ranges for tax certificates and Challan.

51. SAP- CIN- J1ILN Page 52
CIN_ MM_Configuration Steps:
1. SPRO- Tax calculation procedure (TAXINN or TAXINJ ) and assign the country to
calculation procedure
2. SPRO- Classify condition Types
3. SPRO- Assign tax code to company codes
4.SPRO- Specify excise accounts per excise transaction
5.SPRO- Specify G/L accounts per excise transaction
6.FTXP - Tax code Maintenance
7.FV11- Maintenance of condition record
8.J1id- Excise rate maintenance
9.J1i2 - Prepare a sales tax register
10. J1i3- crate outgoing excise invoices in batches
11.J1i5- Update the RG1 PART 1 Registers
12.J1iex- Incoming excise invoices ( central transaction)
13.J1IEX_C- Capture an incoming excise invoice (excise cleark)
14.J1IEX_P-Post an incoming excise invoice (excise supervisor)
15.J1IF01-Create a subcontracting challan
16.J1IF11-Change a subcontracting challan
17.J1if12- Display a subcontracting challan
18.J1IF13-Complete, reverse, or re-credit a subcontracting challan
19.J1IFQ- Reconcile quantities for subcontracting challans
20.J1IFR-List subcontracting challans
21.J1IH- Make a cenvat adjustment posting
22.J1IIN- Create an outgoing excise invoice

52. SAP- CIN- J1ILN Page 53
23.J1ij- Assign excise invoices to delivery for sales from depots
24.J1injv- Adjust withholding tax item
25.j1inrep -Reprint a withholding tax certificate for a vendor
26.J1IQ-Year -end income tax depreciation report
27.J1ir-Download register data
28.J1is - Process an excise invoice (outgoing ) for other movements
29.J1iu-Process exemption forms
30.J1iw-Verify and post an incoming excise invoice
31.J1IX- Create an incoming excise invoice (without reference to purchase order)
32.J2I8-Transfer excise duty to cenvat account
33.J2IU- Remit excise duty fortnightly
34.J2I9- Monthly cenvat return
35.J1IG- Excise invoice entry at depot
36.J1IGA- Create additional excise entry @depot
37.J2I5- Extract data for excise registers
38.J2I6-Print excise registers
39.FTXP-Tax code maintenance
40.FV11-Creating condition record
41.OB40-Define G/L Account for taxes
CIN_ SD_Configuration Steps & Syllabus :
1. Calculation of Excise duty based on Material and Chapter ID combination -
2. Calculation of Excise bases on concessional forms-

53. SAP- CIN- J1ILN Page 54
3. Calculation of Output Tax based on Interstate Transactions-
4. Maintenance and printing of Excise / Sales Tax details of customer on Invoices-
5. Usage of Pre-printed Invoice Numbers -
6. . Excise Invoice Number should start with No.1 for every government fiscal year in Depot-
7. Maintenance of RG23D register in Depots-
8. Reproduction of all Excise details on depot Invoices with respect to source document-
9. Maintaining separate Folio number for all incoming material in Depot-
10. Maintain Entry number for each Folio for outgoing material in Depot-
11. Levy of service tax on all services rendered from Factory / Depot-
12. Payment of Cess on certain category of Material if applicable-
13. Maintenance of excise rules.-
T.code: J1I9 CIN Number range objects:

54. SAP- CIN- J1ILN Page 55

55. SAP- CIN- J1ILN Page 56
Master Data for CIN:
1.CIN TAB with vendor master data
2.CIN TAB with customer master data
3.Tax code assignment in Material master

56. SAP- CIN- J1ILN Page 57
MM CYCLES:
Domestic Procurement (Local Material) :
ME21N - >ME28 - > MIGO - > J1IEX (Capturing & posting) - > MIRO
Import Procurement :
ME21N - > ME29N - > MIRO - > J1IEX ( Capturing) - >MIGO- > J1IEX (posting) - > MIRO
Capital Item Procurement :
ME21N - > ME29N -> MIGO - > J1IEX - > MIRO
Vendor Return
ME21N-> MIGO -> J1IS - > MIRO
Cancellation of Goods Receipt
MIGO - > J1IEX (Posting) - > J1IEX ( Cancel excise Invoice )
Stock Transport Order :
STO-SD
ME21N -> VL10B - > VL02N - > VF01 -> J1IIN
STO-MM
ME21N- > MIGO -> J1IS-> J1IV

57. SAP- CIN- J1ILN Page 58
SALES:
VA01 -> VL01N- > VF01-> J1IIN
Material Scrap
MIGO-> J1IH (Excise JV)
TR6 Challan -> J1IH
UTILISATION - > J2IUN
DEPOT PLANTS :
Depot or Dealer activities are mainly performed for trading material purchase and sale and sale
of material transferred from factory.
There are two aspects of Depot / Dealer scenario:
1. Domestic as well as Import trading material is directly received at Depot / Dealer’s
premises for subsequent sale.
2. Stock transferred from factory in bulk and the same will be sold from Depot / Dealer’s
premises as and when there is a demand from Customer as a Part or Full consignment
considering various factors of factory, Depot / Dealer’s and Customer’s location, time
period, transportation, taxation etc.
Entries of receipt and issues at Depot / Dealer’s are accounted in RG23 D Register.
3. Depot Sales process, RG23 D, Excise Registers, J1IG, J1IJ.
Procurement process in Depot plant :
ME21N-> MIGO-> J1IG-> MIRO
Sales process flow in Deport plant :
VA01->VL01N-> VL02N -> VF01-> J1IJ
CIN TABLES : T Code: SE16n j_1i* and press f4 we can get 129 table list

58. SAP- CIN- J1ILN Page 59
All CIN Tables start with J_1I and J_2I. There are 129 tables. A few of them are:
• J_1IEXCHDR (Header data of Excise Documents)
• J_1IEXCDTL (Line item data of Excise Documents)
• J_1ICHPTER (Chapter ID master)
• J_1IEXGRPS (Excise Groups)
• J_2IEXTRCT (Data extract tables for Excise Registers)
• J_2IUTZDAT (Utilization Date)
CIN Forms :
In CIN there are some sample sap
script forms, which we use
REGISTER NAME
FORM
RG23A Part I J_2IRG23A_PART1
RG 23C Part I J_2IRG23C_PART1
RG 23A Part II J_2IRG23A_PART2
RG 23C Part II J_2IRG23C_PART2
PLA J_2I_PLA
RG 23 D J_2I_RG23D
RG 1 J_2I_RG1
RT 12 J_2I_RT12_ABSTRA
RT 12 J_2I_RT12_ABSTRA
RT 12 J_2I_RT12_3
Here we define the different types of long texts that we want to be able to maintain in the various excise
transactions.
There is no limit to the number of types of long texts we can define.
For each long text, we have to specify
which transactions the long texts are
for Transactions involving
Code
Excise invoices J1IA
Excise JVs J1IH
Subcontracting 57F4 J1IF
Factory sales J1II

59. SAP- CIN- J1ILN Page 60
Smart forms need to be created for all the statutory forms exactly as per legal requirements
Need to assign all the forms to required documents types by using output determination.
CIN NOTE:
542862 Sap Note for MM
535616 Sap Note for SD
373001 CIN Loose and packed materials in RG1 register
951955 CIN- General clarifications for RG1 goods
1434100 RG1 - Daily Stock Account
CIN ACCOUNTING ENTRIES :
This is for Country Version India, Financial Accounting Flow of Entries:
I. Procurement of Stock.
 What should be my accounting entry in procurement?
For Domestic Procurement of Raw Material
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr.
Cenvat Clearing Cr.
During Invoice Verification

60. SAP- CIN- J1ILN Page 61
Cenvat Clearing Dr.
GR/IR Clearing Dr.
Vendor Payable Cr.
For Domestic proceurement of Capital Goods
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr. (50%)
Cenvat On-hold Dr. (50%)
Cenvat Clearing Cr.
During Invoice Verification
Cenvat Clearing Dr.
GR/IR Clearing Dr.
Vendor Payable Cr
Subsequent of Capital Goods
Cenvat Account Dr. (50%)
Cenvat On-hold Cr. (50%)
For Import Procurement of Raw Material
During Customs Duty Clearing invoice
Custom Clearing Dr.
Custom Payable Cr.

61. SAP- CIN- J1ILN Page 62
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr.
Custom Clearing Cr.
During Invoice Verification
GR/IR Clearing Dr.
Vendor Payable Cr.
For Excise Duty Credit of Raw Material without PO
Cenvat Account Dr.
Cenvat Clearing Cr.
For Excise Duty Reversal through Excise JV
Cenvat Clearing Dr.
Cenvat Account Cr.
 What should be my accounting entry when the goods are issued through MM and
excise invoice is created (J1IS & J1IV)?
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.

62. SAP- CIN- J1ILN Page 63
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.
Note: Cenvat Suspense Account should be cleared apprpiately using FI JV's.
 What should be my accounting entry in subcontracting reversal / Recredit ?
For Subcontracting Challan Reversal
Cenvat Reversal Dr.
Cenvat Account Cr.
For Subcontracting Challan Recredit
Cenvat Account Dr.
Cenvat Reversal Cr.
 What should be my accounting entry in SD ?
For Factory Sale
During Billing Document
Customer Account Dr.
Sales Account Cr.
Cenvat Suspense Account Cr.
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.

63. SAP- CIN- J1ILN Page 64
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.
For Stock Transfer through SD
No Accounting entries for Proforma Billing Document
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.
Note: Cenvat Suspense Account should be cleared apprpiately using FI JV's.
II. Central Excise
RG 1 - Production & Issues or Inputs form Production and Sales

64. SAP- CIN- J1ILN Page 65
RG 23A Part I - Link Stock Register, only Product details and Quantity details.
RG 23A Part II - Cenvat Credit on Incoming Materials & Duty Paybale on Outgoing
Materials or on Sales (Monthly Register)
Excise PLA Register - TR 6 Challans
Form No. 5 Register - For Return Goods (Form D3 to be submitted to Excise Dept.,)
In SAP the Movement you save the MIGO Transaction, it automatically generate FI
Document. It will create the following entry.
i). Inventory Raw Material A/c Dr
To GR/IR Clearing A/c Cr
In MIGO Transaction itself, you can post Excise by choosing capture and post Excise
Invoice. The FI Document will be as follows.
ii). RG 23 A Basic Excise Duty A/c Dr
To Canvat Clearing A/c Cr
After doing MIGO, you execute MIRO. In this transaction also SAP will generate FI
document automatically. The Entry will be as follows:
iii). GR/IR Clearing A/c Dr
Cenvat Clearing A/c Dr
VAT Setoff A/c Dr
To Vendor A/c Cr
III. Flow of Entries for a Normal Manufacturing Activity:
I. On Receipt of Raw Materials: (MIGO-movement type:101)
Dr. Inventory of Raw Materials 100
Dr. Inventory of Operating Supplies 20
Dr. Inventory of Packing Materials 10
Cr. GR/IR Clearing A/c 130

65. SAP- CIN- J1ILN Page 66
II. On Invoice Verification: (MIRO)
Dr. GR/IR Clearing A/c 130
Cr. Vendor A/c 130
III. On Goods Issued for Production: (MIGO-movement type:261)
Dr. Consumption of Raw Materials 100
Dr. Consumption of Operating Supplies 20
Cr. Inventory of Raw Materials 100
Cr. Inventory of Operating Supplies 20
IV. On Semi-Finished Goods Received form Process: (MIGO-movement type:101)
Dr. Inventory of Semi-Finished Goods 120
Cr. Cost of Goods Manufactured (Semi-Finished Goods)120
V. On Issued of Semi-Finished Goods for further Processing: (MIGO-movement
type:261)
Dr. Consumption of Semi-Finished Goods 120
Dr. Consumption of Packing Materials 10
Cr. Inventory of Semi-Finished Goods 120
Cr. Inventory of Packing Materials 10
VI. On Finished Goods Received from Process: (MIGO-movement type:101)
Dr. Inventoyr of Finished Goods 130
Cr. Cost of Goods Manufactured (Finished Goods) 130
VII. On Finished Goods Issued for Sales: (VL01N-movement type:601)
Dr. Cost of Goods Sold (Finished Goods) 130
Cr. Inventory of Finished Goods 130

66. SAP- CIN- J1ILN Page 67
VIII. On Raising Bill for the Customer: (VF01)
Dr. Customer A/c 145
Cr. Sales A/c 145
Utilization :
When material is sold to customers, excise duty is collected from the customer which in turn is
payable to central excise department .Hence, excise collected on output material is called as Excise
payable.
When material is purchased from vendor, excise duty is paid to the vendor , which is reimbursable
(receivable) by the Excise Department. Hence, excise paid on input material is called as excise
Receivable.
Instead of paying excise payable and collecting excise receivable from Central excise department,
excise law allows to offset excise payable against excise receivable and if still some balance remains
in excise payable that can be paid to excise department. After offsetting, if some balance remains in
the excise receivable, it should be used for further off setting of excise payable in future.
Modvat or excise duty set-off is a process of calculating the net excise duty either payable or
receivable from the central excise department. This process is known as utilization in CIN.
T code : J2iun is used to do monthly utilization. Input excise duty credit (due to purchase ) is set off
against the excise duty payable or PLA account (different industries uses different nature of
accounts and process), due to sale. Similarly, input excise duty is set off against the excise duty
payable , due to procurement of services. The process of setting off the excise payable duty against
the input available credit is known as Utilization.
Utilization against service tax is possible through t code J2IUN. Unlike excise, service tax is paid to
the vendor while procurement is ready for utilization , not when it is credited to the vendor.
Similarly, service tax receipt from customer is available for utilization not the debit amount on
customer. Master note on service tax is 779512.

67. SAP- CIN- J1ILN Page 68
CIN/VAT/TDS/SERVICE -TAX List of Reports :
J1I2 -Prepare a sales tax register
J1I3-Create outgoing excise invoices in batches
J1I5-Update the RG 1 and Part I registers

68. SAP- CIN- J1ILN Page 69
J1IEX-Incoming Excise Invoices (central transaction)
J1IEX_C-Capture an incoming excise invoice (excise clerk)
J1IEX_P-Post an incoming excise invoice (excise supervisor)
J1IF01-Create a subcontracting challan
J1IF11-Change a subcontracting challan
J1IF12-Display a subcontracting challan
J1IF13-Complete, reverse, or recredit a subcontracting challan
J1IFQ-Reconcile quantities for subcontracting challans
J1IFR-List subcontracting challans
J1IH-Make a CENVAT adjustment posting
J1IIN-Create an outgoing excise invoice
J1IJ-Assign excise invoices to a delivery for sales from depots
J1INJV-Adjust withholding tax Item
J1INREP-Reprint a withholding tax certificate for a vendor
J1IQ-Year-End Income Tax Depreciation Report
J1IR-Download register data
J1IS-Process an excise invoice (outgoing) for other movements
J1IU-Process exemption forms
J1IW-Verify and post an incoming excise invoice
J1IX-Create an incoming excise invoice (without reference to purchase order)
J2I8-Transfer excise duty to CENVAT account
J2IU-Remit excise duty fortnightly
J2I9-Monthly CENVAT return
J1IG-Excise invoice entry at depot
J1IGA-Create additional excise entry at depot

69. SAP- CIN- J1ILN Page 70
J2I5-Extract data for excise registers
J2I6-Print excise registers
J1IQ - Year-End Income Tax Depreciation Report
T code : SAP1, SAP2 More reports available
TAXINN VS TAXINJ :
TAXINN:
1. It is Condition Based Tax procedure.
2. Tax Code is required to be maintained in Condition Record, & if Tax Code is not found in
Condition Record, Sales Cycle will go up to billing, but not release to accounting. Hence even a
single Tax code may suffice the requirement for different Tax rate.
3. Tax condition record is maintain through T Code FV11.
4. It only supports condition-based excise determination.
TAXINJ:
1. It is Formula Based Tax procedure.
2. It was most commonly used upto initial phase of R/3 4.7, but the latter implementations were
with TAXINN.
3. Tax Code plays a vital role, as the Tax Rate are maintained in Tax Code in T Code FTXP.
4. It is complex compared to TAXINN
5. It can supports both condition-based excise determination and formula-based excise
determination.
6. For Example, code for 362 routine for Condition formula for alternative calculation type.
TAXINN: CONDITION TYPE AND ACCESS SEQUENCE
TAX SCHEMA - TAXINN

70. SAP- CIN- J1ILN Page 71
CONDITION TYPE
Condition type is integral part of condition technique. In SAP, condition technique refers to the
method by which the system determines objects like pricing, output, account, etc. from
information stored in condition records. It consists of condition table, access sequence, condition
type, condition record and its determination procedure.
Following is the list of condition type with description available in Tax procedure - TAXINN.
Condition Type
Condition Type
Description
Details
BASB Base Amount Base Amount from SD/MM/FI Pricing
JSER IN: Service tax Service Tax
JSVD IN:Service tax debit Service Tax Debit
JMOP IN: BED setoff % Basic Excise Duty – Setoff %
JMOQ IN: BED setoff Qty Basic Excise Duty – Setoff Quantity
JAOP IN: AED setoff % Additional Excise Duty – Setoff %
JAOQ IN: AED setoff Qty Additional Excise Duty – Setoff Quantity
JSOP IN: SED setoff % Special Excise Duty – Setoff %
JSOQ IN: SED setoff Qty Special Excise Duty – Setoff Quantity

71. SAP- CIN- J1ILN Page 72

72. SAP- CIN- J1ILN Page 73
Steps involved in RG1 register updation
The following is the sequence of event in which register RG1 is updated:
Sequence No Sequence Details
1. In SE16/SE16N, enter Table name: J_2IRG1BAL,
and click on Create. Enter the material
number and 'P' in Material form
(Loose/Pack indicator) and click
'Save'. This step is to be done
only for the first time.
2. Do your Initial Stock entry in
MB1C, movement type 561
3. Go to J1I5, select Posting Date,
Document Year and 'ROP in Classification
(Receipt from outside under any other
provision). Click on Create icon (Register entry)
4. Go to J2I5 and extract the RG1 Register.
You must get a green checkmark.

73. SAP- CIN- J1ILN Page 74
5. After doing the PFI, go to J1I5, select
Posting Date, Document Year and Classification
'IDH' (For domestic sales) or 'IDE' if the
first removal is for Export Sale. Based on the
accounting document generated during PGI (MB03)
the RG1 Register gets updated with the removal
for Outbound Delivery.
6. Re-extract the RG1 register in J2I5.
You must get a green check mark. For the RG1
Register printout, go to J2I6, select the
option, 'Script Form' and hit 'Execute.
Classification is Receipt or Issue Indicator which updates the respective Registers as
follows :
REC. OR ISS.
INDICATOR
INDICATOR DESCRIPTION REGISTER
IIM ISSUED FOR USE/INSTALLATION OR IN
MANUFACTURE
RG23 A & C
IPD ISSUED FOR CLEARANCE/REMOVAL ON PAYMENT
OF DUTY
RG23 A & C
IWD ISSUED FOR CLEARANCE/REMOVAL WITHOUT
PAYMENT OF DUTY
RG23 A & C
IDH REMOVAL FROM FACTORY ON PAYMENT OF DUTY
FOR HOME USE
RG1
IDE REMOVAL ON PAYMENT OF DUTY FOR EXPORT
UNDER NO BOND
RG1
IWE REMOVAL WITHOUT PAYMENT OF DUTY FOR
EXPORT UNDER BOND
RG1
IWT REMOVAL WITHOUT PAYMENT OF DUTY FOR
TRANSFERS
RG1
IWO REMOVAL WITHOUT PAYMENT OF DUTY FOR OTHER
PURPOSE
RG1
RMA RECEIPT FROM MANUFACTURE RG1
ROP RECEIPT FROM OUTSIDE UNDER ANY OTHER
PROVISION
RG1, RG23 A
& C

74. SAP- CIN- J1ILN Page 75
Capital Procurement in SAP :
Create a material master – MM01
Create a Vendor master – XK01
Create an Asset master – AS01
Maintain Chapter id & Cenvat determination – J1ID
Create a PR for a material with account assignment category A, ME51N (Optional)
Create a P.O. for vendor / Material with account assignment category A, asset number – ME21N
Release of capital order (Optional) – ME29N
Goods receipt & Capture the Excise invoice – MIGO
Post the Excise invoice by using internal excise number – J1IEX
Invoice verification for the asset purchased - MIRO
Transfer credit in the second year – J2I8
Check the asset value – AW01N

75. SAP- CIN- J1ILN Page 76

76. SAP- CIN- J1ILN Page 77
SD CYCLES :
SD scenarios
1 Factory sales
1 Inquiry : VA11 ( Optional)
2 Quotation: VA21 ( Optional)
3 Order creation: VA01
4 Delivery : VL01N
5 Post goods issue: VL02N
6 Billing : Vf01
7 Factory Excise Invoice J1IIN
2 Export sales
1 Sales order creation VA01
2 Delivery VL01N
3 Post goods issue VL02N
4 Billing VF01
5 Create Excise invoice J1IIN
6 Creating ARE1 Document J1IA101

77. SAP- CIN- J1ILN Page 78
3 Deemed Export
Deemed Export license capture J1ILIC01
1 Sales order Creation : Va01
2 Delivery : VL01n
3 Post goods issue VL02N
4 Billing : VF01
5 Creation of ARE3 Document J1IA301
4 Stock transfer from Plant to Depot
1 Creating Stock transport order ME21N
2 Delivery duelist for purchase orders VL10B
3 Post goods issue : VL02N
4 Creating billing document: VF01
5 Creating Excise invoice : J1IIN
6 Receipt of transferred materials: MIGO
5 Credit/ Debit memo processing
1 Create credit memo request VA01
2 Change credit memo request Va02
3 Create credit memo (Billing) VF01

78. SAP- CIN- J1ILN Page 79
4 Excise Adjustment postings J1IH
6 Scrap sales order processing
Sales order Creation VA01
Delivery VL01N
Post goods issue VLO2N
Billing VF01
Excise Invoice J1IIN
Post incoming payment F-28
Manual clearing F-44/F-32
7 Intercompany sales
1 Create purchase order ME21N
2 Release P.O ME22N
3 Create Delivery VL10B
4 Post goods issue VL02N
5 Billing VF01
6 Excise Invoice J1IIN
8 Transportation Management

79. SAP- CIN- J1ILN Page 80
1 Create Purchase order ME21N
2 Create Sales order VA01
3 Outbound delivery VL01N
4 Generate Shipment Document VT01N
5 New Delivery to the existing
Delivery VT11
6 check in, Loading start & end VT02N
7 creating the shipment cost document VI01
8 Shipment cost settlement VI02
9 Settlement with forwarding Agency MR11
9 Bought in item
1 Sales order creation VA01
2 Create purchase order ME21N
3 Approval of purchase order ME28
4 Goods Receipt MIGO
5 Out bound delivery VL01n
6 Post goods issue VL02n
7 Billing VF01
8 Excise invoice creation J1IIN
9 Invoice verification MIRO

80. SAP- CIN- J1ILN Page 81
10 Third party sales
1 Creating third party sales order VA01
2 Converting purchase requisition to PO ME57
3 Approval of PO ME28
4 Goods Receipt MIGO
5 Entering invoice MIRO
6 create billing VF01
11 Credit Management
1 Setting a credit limits FD32
2 create sales order VA01
3 Reviewing Blocked sales order VKM1
12 Consignment process
Consignment fill up

81. SAP- CIN- J1ILN Page 82
CF → Delivery type LF → Billing VF01
Consignment issue
CI → Delivery type LF → Billing VF01
Consignment return
CONR → Delivery type LR → Credit for return VF01
Consignment pickup
CP → Delivery type LR → No billing
13 Process steps of stock transfer between Depot to Depot
Supplying plant
1 Create a STO PO from receiving plant ME21n
2 Create delivery with ref to STO PO VL10b
3 Post goods issue VL02n
4 Create Depot Excise invoice with
Reference to delivery document J1IJ
5 Create pro-forma invoice VF01
6 Extract RG23D register for supplying plant J2i5

82. SAP- CIN- J1ILN Page 83
7 Check extracted register for quantity and excise value
For PO items in print register, J2i6
Receiving Plant
1 Goods receipt with out excise capture selection) MIGO
2 Capture excise invoice at depot Enter challan qty
And Excise base amount J1IG
3 Excise values for internally generated
Document J1IG
4 Extract RG23D register for receiving plant J2i5
5 Check extracted register for GR items in Print register J2i6
14 Returns process
1 Creating return order VA01
2 Creating Return Delivery VL01N
3 Creating a credit memo Billing VF01
4 Excise Adjustments postings J1IH
15 Make to order

83. SAP- CIN- J1ILN Page 84
1 Creating sales order VA01
2 MRP run M D04
3 Convert planned order to production Order C015
4 Stocks transferring to sale order stock
5 Delivery VL01N
6 Post goods Issue VL02N
7 Create Billing VF01
8 Create Excise Invoice J1IIN
16 Sales from Depot
1 Create sales order VA01
2 Create Delivery VL01N
3 Post goods issue VL02N
4 Excise invoice for delivery at Depot J1IJ
5 Create billing VF01
17 Sales Period End closing Operations
1 Reviewing blocked sales order VKM1

84. SAP- CIN- J1ILN Page 85
2 Reviewing incomplete sales orders V.02
3 Reviewing sales documents blocked for delivery VA14L
4 Reviewing sales order Due for delivery VL10C
5 Reviewing log of collective Delivery creation V_SA
6 Reviewing incomplete Sd documents (Deliveries) V-UC
7 Reviewing sales documents blocked for billing V23
8 Reviewing List blocked ( For accounting)
Billing documents VFX3
9 Settling the sales order to profitability analysis VA88
18 External Procurement of service
1 Creating a Purchase order ME21N
2 Maintaining a service entry sheet ML81N
3 Approving the service entry sheet ML81N
4 Invoice verification MIRO
5 posting Manual out going payment F-53
6 With holding tax remittance challan J1INCHLN
7 Updating bank challan number for
TDS payment J1INBANK

85. SAP- CIN- J1ILN Page 86
Miscellaneous Topics :
CIN - Health Check
Description
This program is used for checking some of the basic customizing settings in CIN.
Requirements
Execute this program after completing the customizing for FI Taxes
and CIN Customizing
Use
To check the correctness of the customizing settings after completing
the customizing and before starting the testing
Disclaimer
This program only checks for certain basic settings which might prevent the system from normal
functioning.
The correctness of these basic settings does not ensure that all the customizing settings are
correct.

86. SAP- CIN- J1ILN Page 87
Thank You
for Your Time !