CIN FORMULA BASED PROCESS FACTORY SALE: Path: Basic Seetings: 1. Assign Tax procedure to Country IN Path: SPRO-Log.

g.gen-Tax on Goods movt-India-Basic settings-Determination of Excise dutySelect Tax calc.proc. (OBBG) TAXINJ Note: If we dont have tax proc in our system, go to OBYZ 2. Maintain Excise Registration: Path: same as above. 3. Maintain Company code Settings: ( maintains by FI ) 4. Maintain Plant settings 5. Maintain Excise groups (MM & SD) Internal grouping for Excise number ranges and Excise G/L accounts. 6. Maintain Series groups: Domestic and Exports ( Mainly for Number ranges)

7. Maintain Excise duty Indicators: ( 100% - 50% - Nil )

Path: India Master Data: 1. Maintain Chapter IDs: Id provided by GOI along with Excise Rates for similar nature of products. 2. Assign Users to Material master screen sequence for excise duty: (will get CIN details in customer master) Path: India Account Determination: 1. Define G/L accounts for Taxes: Maintain INT for MWS in OB40. 2. Specify Excise accounts per Excise transaction: ( Trans.type: DLFC / CEIV / ARE1 / ARE3 / UTLZ / OTHR / GRPO / TR6C ). We define Accounting entry for trans.type i.e Debit and Credit. 3. Specify G/L accounts per Excise transaction: Assign G/L accounts for Excise Group + Excise trans.type + Company code.

Path: Business Transaction : Incoming excise invoice: 1. Specify which movement type involves Excise invoice: ( 101 / 561 / 601 / 631 / 641 / 647 / 651) Note: RG23A and RG23C will take care of MM consultant. Outgoing Excise Invoice: 1. Assign Billing types to Delivery types: Will act as a Copy control btw Invoice and Excise Invoice. (LF F2 / LF JEX / NL JEX ) 2. Maintain Default excise groups and Series groups: ( combo of Sales area + Ship.point ). This will help to determine series group automatically into excise invoice. Also helps to differentiate btw Domestic or Exports or Deemed exports. A. Designing Tax Procedure : in OBYZ Create the condition types : JMOD JECS ZECS JIN1 JIN6 Maintain the Tax procedure TAXINJ B. Designing Sales pricing procedure for Factory sale : Create the Condition types : JMOD JECSZECSJIN JIN6JEX2-JECX-ZECX UTXJ Create the new sales proc : ZFACT Assign ZFACT in OVKK C. Path: Excise Defaults: Copy the Excise duty values stored in condition type from invoice to fields in Excise invoice. Path: SPRO-S&D-Basic func-Taxes1. Define Tax determination rules in Country IN 2. Define Tax relevancy of Master records OVK3 : Customer Taxes / Material Taxes D. Maintain CIN Master data : (J1ID) E. Maintain Tax codes (FTXP) : F. Maintain Condition Records : UTXJ / JEX2 / JECX / ZECX G. Assign G/L accounts for Sales Tax: Go to OB40 : Maintain Tax Code Z1 and G/L account number.

STO PROCESS In STO process Goods will be transferred from Supplying Plant -> Depot -> Customer. To raise the P.O from Depot we create one customer with cust.pric.proc (1) and Tax classification (4 - No sales tax). Note: To process Delivery we require Customer Ship to Party. We create other customers who place the order to receive the goods from the depot. For these customers we maintain cust.pric.proc as (2) and Tax proc as (1). In STO process when goods moving from supplying plant to Depot - Excise will not be considered. But When goods are selling from Depot - Excise should be considered in the relevant documents. TRANSACTION FLOW: First Process: 1. 2. 3. 4. 5. 6. Purchase Order will be raised at Depot ( Receiving Plant) ME21N Delivery (VL10D) will be raised at Supplying plant. Pro-forma Invoice (Billing type - JEX) will be raised at Supplying Plant VF01 Excise Invoice (J1IIN) will be raised w.r.t Pro-forma invoice. Once the Goods received at Depot MIGO doc will be raised. After MIGO doc, J1IG will be created Capturing Excise invoice raised by Supplying Plant.

Second Process: 1. Create the Sales order ( Here the Delivering plant is Depot, from where the goods will be moved out) VA01 2. Delivery document to be created w.r.t order VL01N 3. After Delv.doc we create J1IJ doc. This will distribute the Excise to customers. 4. After J1IJ, we create an Invoice doc (VF01) - Here the Excise values will be copied from J1IJ. Note: Do not create Excise Invoice at Depot, since the Depot will+ not come under Excise. CONFIGURATION FOR STO PROCESS: To raise the P.O from Depot, we need to: 1. 2. 3. 4. 5. 6. 7. Create a new Customer with the address of Depot (receiving plant) and maintain Tax clasfn as (4). Extend the Material from Supplying Plant to Depot (receiving Plant). Post the Material in supplying plant (MB1C). Maintain Excise Indicator (1) for the created Customer in J1ID. Maintain Material and Chapter ID combination for both Depot and Supplying plant in J1ID. Maintain Depot plant indicator as (3) J1ID Maintain Final indicator as (3) and do not maintain any value in Excise rate and Excise duty rate columns J1ID ( Since the Depot plant is not an excisable one).

# J1ID settings done by integration of SD/PP/MM. 8. Create a Tax Code and maintain Excise duty values only - FTXP. If its not allowing to maintain the excise values Go to-> T.code OBQ3 and uncheck statistical for JMOD/JECS/ZECS. After maintaining the excise value again check these excise conditions as statistical. 9. Maintain Condition records to the condition type UTXJ to the comb of country (IN) Plant region (01) SH region (01) Tax clasfn of customer (should be 4) and Tax clasfn of Material (1). And maintain the amount as 100% and assign Tax code that we created only with the Excise values. MM settings: Path: SPRO->Material Management->Puchasing->P.O->Set up stock transport order-> A. Define shipping data for Plants:1. -> Go to-> Receiving Plant -> Assign Depot -Customer number -> Maintain Supplying sales area. Goto-> Supplying plant -> Assign Supplying sales area only. Note: Do not maintain any customer number. B. Assign Delivery type and Checking rule: Assign Delivery type NL + Checking rule B to the comb of Purchase order type UB and Supplying plant. C. Assign Doc.type one step procedure under delivery tolerance: Assign P.O type UB to the comb of Supplying plant and Receiving plant. Note: If we want to process the P.O in one step then check the indicator One step.

Screen shots (Reference): 1. ME21N :

1. Select the Order type as Stock transport order UB. 2. Maintain Supplying plant, P.O, Purchase group, Company code. 3. Item overview: Maintain Material, Quantity, Depot Plant, Depot Storage location. Note: check the Shipping tab should be determined in the below tabs as it is a mandatory one.