Sunday, November 6, 2011

SAP - CIN Version

Country India (CIN) modules have been specifically designed by SAP to handle the complex Indian taxes. The objective of this article is to throw some light on the various transactions relating to CIN version in SAP so that it can serve as an activity manual for users of SAP. This article is a high level summary of some CIN related transactions.

Material Accounting
 
Tax masters are entered in MM module using ME11 & FV11 transaction codes. ME11 is used chiefly for import transactions where there are multiple taxes like customs duty, CVD, SAD and their respective Cess & Education Cess. FV11 is mostly used for local purchases. These taxes are then captured in purchase orders prepared to enable tax to be captured in material accounting.
 
Local Purchases

 
• Goods Received Note (GRN) is prepared using MIGO transaction and in the GRN stores have to capture the excise invoice details (as excise invoice may be different from commercial invoices in some cases). This excise invoice so captured also helps in generation of RG23A Part I report.

• Based on the above MIGO RG23A Part II entry is made using transaction code J1iex. Here if there is a difference between ED in PO and invoice we can have manual correction (ie) a higher or lower amount of excise can be captured

Import Purchase – little complicated because of customs duty payment before GRN (MIGO)
 
• Prepare customs duty MIRO first based on PO terms – here complication comes in if it is for manufacturing or trading. If manufacturing Special Additional Duty (SAD) is configured for credit, if trading SAD is configured for refund (receivable)

• Customs duty MIRO has to be captured separately for separate condition type like Basic Customs Duty, Cess, ECess, CVD, Cess on CVD, ECess on CVD, SAD and so on as every item of tax has a different treatment in material accounting / credit availment

• If there are multiple line items in the PO there is real complication in entry of customs MIRO as for one line item there are 7 conditions to enter and if in an invoice there are 10 items then there are 70 lines in MIRO to enter. For this, one can use an customs duty update program which can be developed using ABAP program.

• At the time of MIGO the customs duty MIRO number has to be entered to take the correct taxes.

• Then Cenvat (CVD) is availed under transaction code j1iex
 
All reports like RG1 / RG23A Part I / RG23A Part II / RG23C Part II / PLA etc are generated using J1i5, J2i5, J2i6 etc. Excise duty is paid using J2iun
 
RG23C – Capital Goods
 
All the requirements are as same for material purchases, difference is that configuration for capital goods purchase should be done in transaction code J1id, and 50% calculation will happen from there for excise purpose.
 
Goods Transport Agency (GTA)
 
GTA can be configured similar to withholding tax and the same should be configured in vendor master for capturing during the time of MIRO or FB60 transactions. Vatability of GTA can be configured while creating GTA masters.

Sales Tax – VAT credit
 
For Sales tax VAT credit use report J1iz – this gives on list of VAT transactions. Details of raw materials and Capital goods can be split here and entries passed accordingly.

Excise invoice for sales
 
This can be configured as proforma invoice in SAP. For generating excise invoice use transactions J1iin or J1i3
 

1 comment:

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