SD Basic Functions

Supplementary Invoice in SD

Have created one proforma invoice & transferred stock to my branch / depot at Delhi. This is my mother invoice with MRP, say, Rs. 100/-. Now the MRP is increased from date: 01.08.2007 with Rs. 107/-. I need to pass on the additional Excise duty for difference amount Rs. 7/-. 


Is it possible to generate supplementary invoice in SAP SD module?
If yes, then how to create it? Please help me how could I resolve the problem.

To the best of my knowledge you cannot generate an excise invoice without reference to goods movement. 

If you want to ensure the customer is debited for the relevant amount, please generate a credit memo and an excise JV to ensure that the relevant accounting entries are passed. However tracking is possible only through text fields.

Free goods

Free goods are configured by condition technique and pricing procedure. A small note on this will help you.Maintaining records for inclusive free goods

Logistics-Sales and distribution-Master data-Conditions-Free goods

• VBN1 create
• Specify the free goods discount type NA00
• Select the required key combination
• Material: Specifies the material for which free goods are given.
• Minimum quantity: Specifies the minimum quantity of the material that has to be ordered in order to get free goods.
• From: Specifies the quantity from which free goods starts.
• Unit of measure: Unit of measure of material.
• Are free goods: Specifies the quantity of free goods given to the customer.
• Calculation rule: Specifies the rule for calculating the quantity of free goods.
• Free goods: Specifies whether the records are maintained for inclusive or exclusive free goods.
• Free goods delivery control: Specifies whether free goods are to be delivered regardless of the main item or in conjunction with the main item.
• Save the condition record.

Maintaining records for exclusive free goods:

Logistics-Sales and distribution-Master data-Conditions-Free goods

• VBN1 create
• Specify the discount type for free goods NA00
• Select the required key combination
• Select the button exclusive.
• Additional free goods: Equal to "are free goods" in inclusive
• For: Equal to "From" in inclusive.
• Free goods: inclusive/exclusive.
• Additional material free goods: Specify the material which is given as free of charge item.
• Free goods delivery control:
• Note: 1. Inclusive free goods take 10 as 9+1.
• Exclusive free goods take 10 as 10+1.

2 In   Exclusive free goods if required we can give the same material as free of charge item.Free goods concept is based on condition technique.

SPRO-Sales and distribution-Basic functions-Free goods-Condition technique for free goods Maintain condition tables-(After defining condition tables you have to place in Access sequence)

• Maintain Access sequence
• Maintain condition type.
• Go to New entries and define the condition type to which assign the access sequence.
• Maintain Pricing procedure
• Activate free goods determination.

We need to assign the free goods procedure to the combination of sales area, doc pri pro, and cust pri pro.To make the value of free of charge item as '0', in the main pricing procedure, we have to take the condition type

R100.

SD Sales Information System

Configuration For Credit Management

Credit and risk management takes place in the credit control area. According to your corporate requirements, you can implement credit management that is centralized, decentralized, or somewhere in between. 

An organizational unit that represents the area where customer credit is awarded and monitored. This organizational unit can either be a single or several company codes, if credit control is performed across several company codes. One credit control area contains credit control information for each customer. 

For example, if your credit management is centralized, you can define one credit control area for all of your company codes. 

If, on the other hand, your credit policy requires decentralized credit management, you can define credit control areas for each company code or each group of company codes. 

Credit limits and credit exposure are managed at both credit control area and customer level. You set up credit control areas and other data related to credit management in Customizing for Financial Accounting. The implementation guide is under Enterprise Structure -> Definition or Assignment -> Financial Accounting and then Maintain credit control area. You assign customers to specific credit control areas and specify the appropriate credit limits in the customer master record. 

Tips 

Settings for determining the credit control area of a document. The settings of items 1 - 4 are taken into account according to their priority. The credit control area found is stored in field VBAK-KKBER. 

1. Transaction OB38

Check which credit control area is assigned to the company code. 

Company code: 

Credit control area: 

2. Transaction OVFL 

Check which credit control area is assigned to the sales area. 

Sales area: 

Credit control area: 

3. Transaction XD02 or VD02

Check which credit control area is assigned to the payer. 

Payer: 

Credit control area: 

4. Transaction SE37 

Is user exit EXIT_SAPV45K_001 being used? 

5. Transaction OBZK

For the settings under items 2 - 4, field "All company codes" must be marked in Transaction 

OB45, or the credit control area must be entered under the relevant company code in table 

T001CM of the credit control areas allowed. 

Company code: 

Credit control areas allowed: 

6. Settings for the credit checks 

7. Transaction OVAK

Which settings do exist for the sales document type used? 

Sales document: 

Check credit: 

Credit group: 

8. Transaction OVAD 

Which settings do exist for the delivery type used? 

Delivery type: 

Credit group for delivery: 

Credit group for goods issue: 

9. Transaction OB01 

Credit management/Change risk category 

Definition of the risk category for each credit control area. This risk category can be 

assigned to a credit account by using Transaction FD32. 

10. Transaction OVA8 

Here, the individual credit checks for key fields 

o credit control area 

o risk category 

o credit group are set. Take these key fields from the above settings and go to the detail 

screen. In particular, check whether fields "Reaction" and "Status/block" are set 

correctly. To carry out follow-up actions in case of a credit block, the credit check 

status must be set (field "Status/block"). 

11. Transaction FD32 

Credit master data for the payer of the relevant document. 

Credit account: 

Credit limit: 

Risk category: 

Currency: 

12. Settings for updating the credit values Update of the credit values is required for the limit 

check (static or dynamic credit limit check). 

13. Transaction OVA7

Update of the credit value is active for the corresponding item type if the check box is marked. This field corresponds to 

field "Active receivable" in Transaction VOV7. 

Item type: 

Active receivable: 

14. Transaction V/08, Pricing 

In the pricing procedure used for pricing, subtotal "A" must be entered in a line for 

determining the credit value (mark the pricing procedure and doubleclick on "Control"). 

Usually, the net value plus taxes is used. This way the system is determined to use this 

subtotal for credit pricing. The credit price is stored in field VBAP-CMPRE and used for 

update and credit check. 

You can find the used pricing procedure of the order under "Item -> Condition -> Analysis". 

Pricing procedure: 

Line with subtotal = 'A': 

15. Transaction OB45 

Which update group (field "Update") do you use in the relevant credit control area? The 

default setting is "12". If you use another update group, check whether this is fine with 

you. If you open an OSS message, please tell us the alternative update group. 

Credit control area: 

Update: 

16. Transaction OMO1

Which kind of update did you choose for structure S066? 

In any case, "Synchronous update (1)" has to be chosen as the kind of update. 

All other settings will lead to errors.

Order to Cash Cycle

A customer orders some items from your company by creating a sales order (Tcodes: VA01, VA02, VA03, Tables: VBAK, VBAP etc).

Your company decides to deliver the items ordered by the customer. This is recorded by creating a outbound delivery document (TCodes:VL01N, VL02N, VL03N, Tables: LIKP, LIPS etc).

Once the items are available for sending to the customer, you post goods issue which reduces your inventory and puts the delivery in transit. This will create a material document. You will post goods issue using VL02N but the material document created will be stored in tables MKPF, MSEG.

You will then create shipment document to actually ship the items. (Tcodes: VT01N, VT02N, VT03N, Tables: VTTK, VTTP etc).

You finally create a sales billing document. (TCodes: VF01, VF02, VF03, Tables: VBRK, VBRP etc). This will have a corresponding accounting document created that will be in BKPF, BSEG tables.

When customer pays to your invoice, it will directly hit your AR account in FI.

You will have to remember that these are not a required sequence. Some times, you may configure your system to create a SD invoice as soon as you create a sales order or you may not create a shipping document at all. This is the position where Functional Consultant would come into picture and study the company's order to cash process and configure the SAP system to do so.

Batch Strategy, Search procedure and Automatic Batch Determination

Business may need to identify and differentiate between individual items of a material. To supplement the material master record, which may contain all data for describing and managing a piece of material, but does not enable to differentiate between individual items of that material.

Batch configuration is mainly used:

• To work with homogeneous partial quantities of a material.

• To meet legal requirments or regulations.

• Defect tracing, callback activities, and regression requirement.

• To meet production or procedural requirments(for example, settlement of material quantities on the basis of different quantity specifications).

• To ease the goods movements processing.

• To optimize all logistic functions.

• ·         Inventory management

• ·         Sales and Distribution

• ·         Process industry

• ·         Production

• ·         Warehouse management

• ·         Manual creation of a batch master record

• ·         Goods receipts

• ·         Creation of a process or production order

• ·         Useage decision in Quality Management

• ·         Quality analysis

• ·         Transfer postings(including batch splits).

• ·         The functionality for which the class is intended

• ·         The type of objects that it can be used to classify.

• Objects can be classified via classification transactions or directly through their master record(i.e. the classification view of the material master).

• In order to do a search, a user must know the class to search within. It can be found by:

• ·         Placing a * in the class field

• ·         Using a search help

• ·         Exploding the hierarchy graphically

• ·         Via the characteristics to be used.

• Condition Type: It represents the four character strategy type identification key, ZGM2.

• Access Sequence: Access sequence represents the group of condition tables used as key combinations to enter the condition records,  which is assigned to strategy type.

• Class Type: The class type is always 023—the batch class provided in the standard SAP system for use with batch management, except for the material/plant level batch maintenance scenario, where the class type is 022.

• Class Using Class: A default classification can be defined for the strategy type.

• Selection criteria: The Selection Type field defines how the selection for a batch needs to happen. When left blank, the system immediately displays the batches that meet the selection criteria when the batch search is executed in a document.

• Sort Sequence: The Sort Sequence field allows to sort the suitable batches based on specific characteristics (Example, remaining shelf life or delivery date). You can define ascending or descending sort sequence for each field. As an example, You can instruct the system to pick those batches for which the remaining shelf life ( No of days left for the material lot to be expired from the date of delivery) is  greater than 40 days.

• Batch Split: The Batch Split field controls the number of batch splits that are allowed during batch determination. Batch splits are not possible for sales orders unlike in deliveries, the default split values entered in the search stratergy are overrided.

In various industry sectors, particularly the process industry, you have to work with homogeneous partial quantities of a material or product throughout the entire quantity and value chain.

In SAP system, a batch is the quantity or partial quantity of a particular material or product that is manufactured to the same recipe.

SAP ba                         In SAP system, Batch management process is utilized for Manufacturing Visibility and Execution and Collaboration.

                                      In simple terms, SAP Batch Handling means an additional key fields for the user to identify the same materials.

For example, Normal Control: Plant + Material + Storage Location

                                      Batch handling: Plant + Material + Storage location + Batch Number.

                                      Batch management is a functionality used in every industry mainly:

·         Chemicals

·         Pharmaceuticals

·         Cosmetics

·         Hygiene and sanitation

·         Food

·         Retail

Batch functions provide you with the possibility of managing and processing a non-reporoducible production unit in all areas of logistics.

In Pharmaceutical industry & food Industry, Batch function is used to avoid selling lots which are no longer be used or sold after a certain period.

Batch is structured under LO (General Logistics) area in SAP R/3 system. However it will require Customizing setting in the respective Logistics area. These are:

Batches are well integrated and can be traced throughout the complete supply chain, From the point of entry into the manufacturing process till they leave the production plant through Sales.

Batch Number Assignment

Batch numbers can be assigned manually or allow the system to generate. Internal number assignment is activated in Customizing for batch Management. It is activated at the client level. A need to generate a batch number can occur due to:

Classification and Batch Management

The SAP Classification is used to : find similar objects or find out no suitable objects exist.

The three main activities within the classification system are : Maitaining characteristics and classes, Linking objects to classes and assigning characteristics values, and Finding objects.

Characteristics are defined for a specific format, either Characteristic, numeric, a date, a currency, or  time. Reference characteristics pull their values automatically from master record fields. No user maintenance is required.

There are two types of characteristics, Pre defined Standard characteristics and user defined characteristics. To copy the standard characteristics to the current client, report RMMCCH01 has to be used.

    

Classes are defined for a specific class type. The class type controls:

Batch Determination

Batch determination is used to select those batches which meet the specific business conditions

·         Batch determination is based on the condition technique.

·         Agreements regarding specification customer accept are captured in strategy records. During batch determination the system compares batch specifications to those in the strategy record.

·         Two lists can be used to track batchs:

i.              The Batch where used list

ii.             The Pick-up list

·         Pricing can be done at either the batch or material level.

Each individual batch search stratergy is based on a stratergy types and several search stratergies are grouped under a search procedure which is assigned to a business transaction.

Strategy types are the condition types that control the search criteria. It can be created using the  transaction code is V/C1, or the menu path IMG à Logistics à General à Batch Management à Batch Determination And Batch Check à Strategy Types à Define Sales And Distribution Strategy Types

The important fields on this customization screen are as follows:

Once the strategy is defined we need to assign the strategy types to a determination procedure that will help determine the required batch during a sales transaction.

The transaction code is V/C3, and the menu path is IMG à Logistics à General à Batch  Management à Batch Determination And Batch Check à Batch Search Procedure Definition à Define Sales And Distribution Search Procedure.

Finally, we define the determination rule.

The transaction code is V/C5, and the menu path is IMG à Logisticsà General à Batch Management à Batch Determination And Batch Check à Batch Search Procedure Allocation And Check Activation à And Check Activation à Allocate SD Search Procedure/Activate Check.

Here, a combination of sales area and document type helps in determining the relevant determination procedure for a sales transaction. This can be represented in equation form as follows:

Sales area + Document type = Determination procedure

If the business requires the SAP system to automatically determine the relevant batches during sales order and delivery processing, it can be specify by selecting the automatic determination check box for each sales and delivery item category for which you would like the automatic batch determination.

The transaction code is V/CA for sales and V/CL for delivery. The menu path is IMG à Logistics àGeneralà Batch Management à Batch Determination And Batch Check à Activate Automatic Batch Determination In SD.

Batch Determination in Sales and Distribution

There are four points at which you should use batch determination in SD:

a.     Quotations

b.    Quantity Contracts

c.     Sales Orders (or Scheduling agreements)

d.    Delivery

Batch Determination in Sales Orders

You should choose batch determination in sales orders when customer requirements take precedence over all other factors(such as, stock removal strategies for example). Use batch determination here, if a customer, for instance, require a material with certain set specifications.

You should use batch determination for the sales orders to find batches for set specifications. You can also reserve batches, as requirments are transmitted via the sales order in the same way as they are via the quotation.

Batches assigned in sales order are copied to the delivery and cannot be changed.

Batch Determination in Delivery

You should choose batch determination in deliveries, if

• Dealing with materials that are constantly available(mass production).
• ·         You want to minimize capital lockup.
• ·         The specification are not very detailed(e.g. if you require batches that may not be sold in the USA but in Asia, or batches that are suitable for whole customer groups).
• ·         The expiration date, or the remaining shelf life are the most important criteria.

·         Batch splits are necessary.

Manage Batch Split

Batch indicates the various shelf characteristics of a material, ideally, the manufacturing lot used to produce this material. If a material is Batch-managed, then the same is specified in the Material master.

The batch split functionality is manually processed using batch determination option in the Outbound delivery 

The order quantity can be split into many batches, if batch split is allowed for the material. It is useful in case the requirement quantity can’t be fulfilled by a single batch or if the material is to be picked across batches 

If no batch split is allowed (batch split is zero), then one batch will be used to satisfy the requirement

Batch Split in Sales and Distribution delivery:

When materials are stored in the batch format or when materials are produced in batch format to be stored in the storage location, batch split is used.

When the outbound delivery is being processed, batches from the storage location are used. E.g. if there is an order for 400 pieces and there are multiple batches with batch size of 300 pieces each, then two batches would be required to fulfill the order. In this case, we will chose the material to be delivered, and then manually chose the option for enabling batch split.

We’ll divide the order into two batches:

Material 1 – Batch 1 – 300 pieces

Material 1 – Batch 2 – 100 pieces

Thus by choosing different batches, the batch split enables us to meet the delivery requirements. Batch split enables us to pick only from those batches that meet our Batch strategy and other criterion.

Batch strategy can be created using the transaction VCH1. Various options are available to split batches that are displayed based on :

· Customer / Material

· Customer / Material / Plant

· Country of Dest / Mat Grp

· Customer Hierarchy

· Customer Hierarchy/Material

Batch Number can be assigned against a material while creating a sales order.

Batch Determination Process

 Batches are defined within different processes, depending on the module being used. For SAP SD, they are defined for sale orders, quotations, agreements, and deliveries.

A search procedure is assigned to a business transaction (be it IM, SD, WM, PP). Depending on the business transaction, the search procedure provides different strategy types.

A batch search strategy is linked to each strategy type. The selection class must contain at least one of the batch’s characteristic.

The batch determination either can be done automatically by the system, or manually by the user.

Following steps take place in succession:

·         Find search procedure for the business transaction

·         Searches strategy types listed in the search procedure for a search strategy:

o   The first valid search strategy is used

·         Characteristics from the selection class of the search strategy are used to find batches with suitable specifications

·         Check if the batches are available

·         Sord batches according to sorting rule

·         The proposes a selected quantity

·         If each search strategy contains the information, system proposes to run batch determination online

Steps for “Processing Batch Determination”.

·         Define the characteristics with T-code CT04 to qualify for the batch search criteria

·         Define the class with T-code CL02 for batch selection

§  Enter release class: 023

§  Assign characteristics defined for batch selection to class

§  Extend material master to this class for required material

·         Define search strategy with the T-code MBC1

§  Selecting required key combination (e.g. Plant/Material)

§  Enter the values for selected fields of key combination

·         Define the sort sequence for batch selection

·         Enter Goods Issue of material (e.g. to cost center) with transaction code MIGO

·         Batch is selected automatically with batch determination procedure

·         Post the GR document

Picking of Goods

"Picking" in SAP. Before goods are actually shipped to a customer, it is necessary to prepare the correct quantity and quality of goods as specified in the sales order. Picking in SAP sales and distribution can be defined as 

Picking refers to preparing the right quantity and quality of goods for shipping on schedule as required by the customer. 

Once picking is configured, SAP Sd automatically generates picking lists and picking labels which can be tagged to the relevant goods. SAP can be configured to ensure that picked quantity is confirmed before goods are issued. This can be done using transaction code VSTK. In T-code VSTK, picking confirmations can be set, which ensure that goods picked for delivery are in accordance with picking slips. Picking thus helps in monitoring each item using the picking status. Picking is normally done in SAP SD by a shipping clerk. But, picking can be done in the following three ways in SAP. 

- SAP SD can be configured to execute picking automatically. 

- Picking can be scheduled to run at pre-defined intervals. 

- Picking can be triggered manually by an shipping clerk.

SAP SD Customer Groups

SAP's Sales and Distribution module is quite comprehensive and contains various features for analysis. One such feature within SAP SD is the creation of Customer Groups. Simply speaking, customer groups are part of the customer master data in SAP IMG. Customers are assigned to a particular customer group by assigning a two digit alphanumeric key. Such customer group key needs to be assigned to each and every customer master records. The main benefit of customer groups is that it can be used in generating statistics and ceating condition records such as records for pricing. 

One example which I can give is suppose you create two sets of customer groups, say Customer group A1 for domestic sales and Customer group A2 for international sales. You can choose to give discount to customer group A1 which arecustomers in the domestic market by creating a pricing condition for group A1. Customer groups can be created in SAP SD usign the following menu path: 

IMG >> Sales & Distribution >> Master Data >> Business Partners >> Customers >> Sales >> Define Customer Groups 

Alternatively, one can use the transaction code OVS9. One needs to simply define a two digit alphanumeric customer group key. Once defined, the same can be assigned to a customer master record using the transaction code VD02. Such custoomer master key can be made mandatory for all customer master records

Cin /Excise invoice in SD

Excise registers ETC

In Indian Taxing procedure, Excise Duty plays a vital role in manufacturing cenario’s. Excise related configuration is known as CIN configuration. CIN Configuration is a topic in itself. Some info on CIN Configuration (it may not appear as understandable below, but if you check on screen, it will be understood better):

Country Version India comes with four pricing procedures as follows: 

• JINFAC (Sales from manufacturing plants) 

• JINEXP (Export sales) 

• JINDEP (Sales from depots) 

• JINSTK (Stock transfers 

CIN: 

IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings > 

Maintain Excise Registrations 

Use 

In this IMG activity, you maintain the data relating to your excise registrations. 

Activities Enter each of your excise registrations, specifying a four-character code for each 

Excise Registration IDs In this activity, you maintain excise registration IDs. You create one ID for each of your business's excise registrations. 

Activities 

For each excise registration in your business create a registration ID, and state:

• Which taxes the registration covers (additional excise duty, special excise duty, and cess)Fields for any taxes that are not covered will be hidden in transactions involving excise duty. 

• The maximum number of items to be printed on each excise invoice
• Whether you are allowed partial CENVAT credits

Maintain Registration ID NUMBER, Excise code number, excise registration number

Excise Registration Number 

A number assigned to each premises or location that has registered as a manufacturer with the excise authorities. Every entity with an excise registration number is required to keep its own excise books.

ECC Number 

Specifies the organization's ECC number.

Excise Registration Number 

A number assigned to each premises or location that has registered as a manufacturer with the excise authorities. Every entity with an excise registration number is required to keep its own excise books.

Excise range: Specifies the excise range in whose area the excise registration is located.

Excise Division  Specifies the excise division in whose area the excise registration is located.

Excise Collectorate The code of the excise collectorate in whose area the excise registration is located.

Indicator for confirming AED usage Additional Excise duty Percentage. These are leviable under the additional duties of excise act. These duties are in addition to basic excise duty and special excise duty. 

Example
Additional Excise duty is leviable in case of textile products, tobacco and sugar.

Similarly for SED CESS

Number of Items in Excise Invoice 

Shows the maximum number of line items that the authorities allow per excise invoice.
Dependencies This information is used when you create an excise invoice in Sales and Distribution (SD) for factory sales and for other movements.

This information is used to split the transfer postings' items into multiple subcontracting challans.

Excise register set description 

Description of the excise registers set.

Partial CENVAT Credit Indicates that the excise registration ID is allowed to credit only a portion of its input excise duty to its CENVAT account. 

Dependencies 

When you post a goods receipt, the system splits the input excise duty on the material into its deductible and nondeductible amounts. It posts the deductible duty to the appropriate CENVAT account, and adds the nondeductible duty to the material value.

This information is also shown when you post the vendor's excise invoice.

Maintain Company Code Settings 

Use 

In this IMG activity, you maintain the data relating to your company codes.
Document Type for CENVAT Postings
It controls, which document type the system uses when making CENVAT postings in Financial Accounting (FI). Here ED is document type for cenvat posting.

Indicator for providing debit account overwriting 

Debit Account Overwrite Indicator. X - Indicates debit accounts can be overwritten. Use In excise journal voucher transaction. It provides the flexibility to the user to enter the debit account of his choice depending on the nature of transaction.

Automatic balance Indicator

Excise year start month The calendar month marking the beginning of the excise year 

Use 

This start month represents the month for the start of the excise invoice number range. The month 04 is entered here indicating April of the calendar year as the start month for excise invoices. Any change by the Excise authorities regarding start month should be taken care of by an entry in this field and initialization.

Excise invoice selection procedure 

Excise invoice selection type. To indicate the method opted by the company for selecting the excise invoice. It can be either earliest or latest invoices that were received.

Number of excise invoices to be selected 

Indicates the number of excise invoices that needs to be selected in the excise invoice selection.

Days to be considered for excise invoice selection
Number of days from document date for excise invoice selection.
Example
If the value of this field is 20 and today is 28-03-97. The excise
invoice selection will show the related invoices only for the
period 08-03-97 to 28-03-97.

Document type for TDS FI posting
Financial accounting document type for TDS posting.

Document type for FI posting on Utilisation
Financial accounting document type for TDS posting.

Indicator for item level excise duty round off
This indicator is to be used for deciding whether Item level excise duty amount rounding off is required during procurement cycle. If marked 'X' then the excise duty amount will be rounded off to the nearest rupee at the Purchase order level. This will not round off the CENVAT credit to be taken. If the duty amount is less than one rupee then no rounding is done

Rounding off of Excise duty for outgoing excise invoice
You can round off the Excise amount to be paid during an outgoing Excise invoice by marking this indicator as 'X'. The rounding is done at the item level for each item where the amount is greater than 1 Rupee.

Immediate Credit on Capital Goods
Instructs the system, when you verify a goods receipt for capital goods, to immediately post half of the input excise duty to the appropriate CENVAT accounts.

The rest is posted the CENVAT on hold account, for use in the following year.

CVD Clearing Account
Specifies which G/L account the system credits when you take a CENVAT credit on countervailing duty in the Incoming Excise Invoices transaction.

Exchange rate type
Key representing a type of exchange rate in the system.
Use
You enter the exchange rate type to store different exchange rates.
Example
You can use the exchange rate type to define a buying rate, selling rate, or average rate for translating foreign currency amounts. You can use the average rate for the currency translation, and the bank buying and selling rates for valuation of foreign currency amounts.

Exchange rate type to be used for Export excise duty converts
When you are creating an Excise invoice for export sales then the exchange rate for duty calculation will be picked up using this Exchange rate type.

Maintain Plant Settings
Use
In this IMG activity, you maintain excise information relating to your plants.
Plant Settings
In this activity, you maintain excise information relating to your plants.
Activities
For each plant:
• Specify whether it is a manufacturing site or a depot.
• Assign it an excise registration ID.
You can assign the same ID to more than one plant, if required.

Depot
Indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and invoice generation.

Number of goods receipt per excise invoice.

Multiple GR for one excise invoice, Single credit
Multiple GR for one excise invoice, Multiple credit

Maintain Excise Groups
Use
In this IMG activity, you define your excise groups. For each excise group, you can also control how various excise invoice transactions will work.
Excise Groups
In this activity, you define excise groups. An excise group allows you to maintain a separate set of excise registers and excise accounts. The RG 23A, RG 23C and PLA serial numbers are created for an excise group.

Recommendation
Under normal circumstances, excise authorities require every business to maintain only one set of excise registers and one set of accounts. But through exemption from the authorities, multiple books can be maintained.

If your company has only one set of excise registers, then you need to maintain only one excise group.

Activities
1. Create one excise group for each set of registers that you need to keep.
1. Assign the excise groups to plants.
2. Maintain whether this Excise group is for a depot or not.
3. If you receive only one consignment for an Excise challan then you can leave GR's per EI as blank. If you receive multiple GR's for a given Excise challan and would like to avail multiple credit mark the GRs per EI as 'Multiple GR's for one excise invoice, multiple credit'. Alternatively if you want to availa the credit only after all the goods receipts have been made mark it as ' Multiple GR for one excise invoice, single credit'.
4. If you want to automatically create Excise invoice during Sales cycle at the time of billing the tick the indicator 'Create EI'
5. During depot sales if you do not want to do RG23D selection and posting separately and would like to complete RG23D selection in one step mark the indicator 'RG23D Auto post'. This will post the selected records into RG23D automatically. You cannot cancel the selection later.
6. If the indicator 'Default GR qty' is marked system will default the Excise challan quantity on to the Goods receipt if the Excise invoice number is given in the pop-up.
7. If the indicator 'Folio no create' is marked system will generate Folio numbers for RG23D during receipt of excise invoice into depot.
8. 'Automatic posting' when ticked will post the Excise invoice other movements automatically along with creation in single step.
9. 'Create Part1 for Block Stock' when marked will create a Part1 during the receipt of material into Blocked stock .
10. 'Create Part1 for STO' when marked will create a Part1 during the receipt of material through inter plant transfers.
11. 'Create Part1 for consumption stock' when marked will create a Part1 during the receipt of material into consumption stock.
Excise Group
Governs which set of excise registers a business transaction will be included in.
Following is the relation between excise group, plant and registration.

Dependencies
In define excise groups in Customizing.
Then, in transactions involving excise duty, for example, when you post a vendor's excise invoice, you specify which excise group you are using. This information tells the system which G/L accounts to post the excise to.
At the end of the period, when you come to prepare your excise registers, you create different sets for each excise group.

Indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and invoice generation.

GR Per Excise Invoice

Multiple GR for one excise invoice , Multiple credit
Multiple GR for one excise invoice , Single Credit

Create Excise Invoice Automatically
Instructs the system to automatically create a Sales and Distribution (SD) excise invoice immediately you create a commercial invoice or a pro forma invoice.
The excise invoice is created in the background.
Dependencies
If you want to make use of this function, you must also define the default plant, excise group, and series groups in Customizing for Sales and Distribution (SD), by choosing Excise Group - Series Group Determination.

RG23D Sales Creation and posting option
RG23D Automatic Option if selected will create Depot excise invoice by posting the selection of excise invoices in single step.
If this is not selected then you need to separately do RG23D selection followed by PGI and then RG23D verification and posting.
If you need automatic posting of RG23D selection then the Post Goods Issue should have been completed before running RG23D selection.

Default excise qty in GR
If this indicator is ticked then while doing Goods Receipt using 'MB01' system will default the excise invoice quantity on to the Goods receipt document.


Folio number for depo

Posting
If this indicator is marked then while creating Excise invoice for other movements system automatically does the Verify and Post. You need not separately Post the excise invoice

Also we can set indicator for creation of part 1 for:

Blocked stock
Stock transport order
Consignment stock

Maintain Series Groups
Use
In this IMG activity, you define the different excise series groups within your company. Series groups allow you to maintain multiple number ranges for the outgoing excise documents.
Based on excise regulations and exemptions from the authorities you can maintain multiple number series for outgoing documents. But each of these series has to be declared to the excise authorities.
Activities
• Define excise series groups based on type of outgoing document
• Assign series group to excise registration ID
• If no financial postings are required for an Excise invoice in this seris group then you tick the 'No utilization' indicator.
• If the CENVAT has to be paid immediately and you need not wait for the Fort nightly payment then mark the 'Immediate Utilization' indicator.
Example
You could define two series groups, group 001 for excise invoices, and group 002 for 57 F4 documents.

No account postings for CENVAT in sales cycle
No utilization Flag
If you do not need any CENVAT utilization for an excise invoice but would like to just generate an excise invoice then you need to mark this indicator.
IF the flag is checked then system will create an Excise invoice in the given Series group but there will not be any account postings or Part2 postings.
Immediate Utilization of CENVAT
Specifies that when you create an excise invoice, the system immediately pays the amount from CENVAT and creates the Part II entry. Such invoices will not be listed for fortnightly utilization.
If you have both fortnightly and immediate utilization for the same excise group, the account determination within CIN IMG should point to the ED interim account.
Account determination for immediate payment will be done exactly the same as being done for fortnightly utilization program.

Maintain Excise Duty Indicators
Use
In this IMG activity, you maintain the excise duty indicators.

IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty >
Select Tax Calculation Procedure
Use
In this IMG activity, you specify which tax procedure you want to use for determining excise duties and sales taxes on input materials in India.
• If you use condition-based excise determination, use a copy of the tax procedure TAXINN.
• If you use formula-based excise determination, use a copy of the tax procedure TAXINJ.
This tax procedure also supports condition-based excise determination, so that you can work with both concurrently.
We strongly recommend that new customers use condition-based excise determination. Note that once you have started using a tax procedure, you cannot switch to another one, otherwise you will not be able to display old documents.

Maintain Excise Defaults
Use
In this IMG activity, you define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination.
Activities
If you use condition-based excise determination, fill out the CVD cond. field and leave all the others blank.
If you use formula-based excise determination, fill out all of the fields as follows:
• Enter the tax procedure and the pricing conditions that are relevant for excise tax processing.
• Specify the purchasing and sales conditions types used for basic excise duty, additional excise duty, special excise duty, and cess.
• Specify the conditions in the sales order that are used for excise rates.
• Specify the countervailing duty condition type used for import purchase orders.
See also

SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materials Management (MM) -> Condition-Based Excise Determination and -> Formula-Based Excise Determination.
IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty >
Condition-Based Excise Determination
Use
When you enter a purchasing document, for example, a purchase order, the R/3 System automatically calculates the applicable excise duties using the condition technique.
Features
The standard system comes with two tax calculation procedures. TAXINN is only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise determination. Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.
Since the exact rates of excise duty can vary on a large number of factors, such as which vendor you purchase a material from, or which chapter ID the vendor stocks the material under, you create condition records for every sort of excise duty.
When you come to enter a purchasing document, the system applies the excise duty at the rates you have entered in the condition records.
Activities
Customizing
for Logistics® India®Make the settings in Customizing Basic Excise Duties Using®– General, by choosing Taxes on Goods Movements Account Settings Determination.®Condition Technique and …
These activities include one activity where you define a tax code for condition-based excise determination.
Master Data
Create condition records for all excise duties that apply, and enter the tax code for condition-based excise determination in each.
Day-to-Day Activities
When you enter a purchase order or other purchasing document, enter the tax code for condition-based excise determination in each line item. The system then calculates the excise duties using the condition records you have created.
When the ordered materials arrive, you post the goods receipt and the excise invoice. The system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice.
Creating Condition Records for Excise Duty
1. In the command field, enter FV11 and choose .
2. Enter the condition type that you want to create a condition record for and choose .
The Key Combination dialog box appears.
3. Select the combination of objects that you want to create the condition record for.
On the dialog box, Control Code means "chapter ID."
So, for example, to create a condition record for a tax that applies to a combination of country, plant, and chapter ID, select Country/Plant/Control Code.
4. Choose .
5. Enter data as required.
In the Tax Code field, enter the dummy tax code that you have defined.
6. Save the condition record.

Formula-Based Excise Determination
Use
When you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.
Prerequisites
In order for the system to be able to determine which rate of excise duty to apply, you must have maintained all the access®data on the Excise Rate Maintenance screen, which you can Master Data from the SAP Easy Access screen by choosing Indirect Taxes Excise Rate ®Maintenance.
You maintain the following types of data:
• Plant master data
You assign each of your plants an excise duty indicator. You can use the same indicator for all the plants with the same excise status from a legal point of view, such as all those that are in an exempt zone.
See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit).
• Vendor master data
For each of your vendors with the same excise status from a legal perspective, you define an excise duty indicator. You must also specify the vendor type – for example, whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as a small-scale industry.
For each permutation of plant indicator and vendor indicator, you then create a final excise duty indicator.
• Customer master data
Similarly, you assign the same excise duty indicator to each of your customers that share the same legal excise status.
Again, for each permutation of plant indicator and customer indicator, you then create a final excise duty indicator.
• Material master data
Each material is assigned a chapter ID.
• Excise tax rate
For every chapter ID and final excise duty indicator, you maintain the rate of excise duty.
If your business only qualifies for partial CENVAT credit, you must customize your system accordingly.
Activities
Let us consider an example to illustrate how the system determines which rate of excise duty to apply to a material. Assume you are posting a sale of ball bearings to a customer. The system automatically determines the rate of excise duty as follows:
1. Looks up the customer master data to see what status you have assigned the customer.
Let's assume you've assigned the customer status 3.
2. Looks up the plant master data to see what status you have assigned the plant.
Similarly, your plant has status 2.
3. The system looks up the table under Excise Indicator for Plant and Customer to see what the final excise duty indictor is for customer status 3 and plant status 2: It is 7.
4. The system determines the chapter ID of the ball bearing for the plant.
Let’s assume the chapter ID at plant for the ball bearings is 1000.01.
5. Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000.01 under status 7.
Define Tax Code for Purchasing Documents
Use : In this IMG activity, you define a tax code for the purposes of calculating excise duty when you enter purchasing documents.
Only carry out this activity if you use condition-based excise determination.
Activities: Create a new tax code, and set the tax code type to V (input tax). Do not make any other settings for it.

Assign Tax Code to Company Codes
Use
In this IMG activity, assign the tax code for purchasing documents to the company codes where it will be used.
Only carry out this activity if you use condition-based excise determination.

Classify Condition Types
Use
In this IMG activity, you specify which condition types you use for which sort of tax. Note that this only applies to condition types that you use with the new excise determination method.
The system uses this information when you create a document from another one. For example, when you enter an incoming excise invoice from a purchase order, or when you create an outgoing excise invoice from a sales order, the system determines the various excise duties in the excise invoice using the information that you have entered here.
In addition, when you create a purchasing document, the system only uses the condition types that you enter here.
• For taxes on purchases, use the condition types contained in the tax procedure.
• For taxes on sales, use the condition types contained in the pricing procedures.
Standard settings
The standard system comes with sample settings for the tax calculation procedures and pricing procedures.
Use these settings as a basis for your own.

IMG > Logistics - General > Tax On Goods Movement > India > Account Determination
Define G/L Accounts for Taxes
Use
In this IMG activity, you specify which G/L accounts you will use to record which taxes.
Requirements
You have set up G/L accounts for each of the processing keys listed below.
Activities
Assign an account to each of the following posting keys. The accounts for VS1, VS2, and VS3 are used as clearing accounts during excise invoice verification.
• VS1 (basic excise duty)
• VS2 (additional excise duty)
• VS3 (special excise duty)
• VS5 (sales tax setoff)
• MWS (central sales tax)
• MW3 (local sales tax)
• ESA (service tax)
• ESE (service tax expense)

Specify Excise Accounts per Excise Transaction
Use
In this IMG activity, you specify which excise accounts (for excise duty and CENVAT) are to be posted to for the various transaction types. Enter all the accounts that are affected by each transaction type.
If you use subtransaction types, enter the accounts for each subtransaction type as well.
Activities
Transaction type UTLZ is used for determining accounts only while posting excise JVs and also if the payment of excise duty has to be done fortnightly.
The fortnightly CENVAT payment utility picks up the credit side accounts from the transaction types of GRPO, EWPO, and TR6C for determining the CENVAT and PLA accounts. There is no separate transaction type for fortnightly payment.
Example
Excise TT DC ind Account name
GRPO CR CENVAT clearing account
GRPO CR RG 23 BED account
GRPO DR CENVAT on hld account


Specify G/L Accounts per Excise Transaction
Use
In this IMG activity, you assign the excise and CENVAT accounts to G/L accounts.
When you come to execute the various transactions, the system determines which G/L accounts to post to by looking at the:
• Excise group
• Company code
• Chart of accounts
Furthermore, if you want separate account determination settings within an excise group, you can also use sub transaction types.
Requirements
You have already:
• Defined the G/L accounts
• Defined the excise groups
• Maintained the transaction accounts
Activities
For each excise group, assign the excise and CENVAT accounts to G/L accounts. For most businesses, one set of accounts will suffice for alltransactions.
Note
You need not remit the CENVAT to the excise department immediately, so maintain the credit account for transaction type DLFC as an excise duty interim account. This will be set off when you remit the duty.
Config setting needed to be done in order to get the Excise Details Screen in Material Master.

Even though this functionality is available in enterprise version, a small config step has to be made in Screen Sequences for Material Master.

Following document helps you to do this configuration.

1.à Logistics General à Material Master à Configuring the MaterialàGo to IMG Define Structure of Data Screen for each master Screen Sequence.
2. Select your screen sequence. Usually it would be 21. Select the same and click on Data Screen in the left frame.
3. Once the data screens are exhibited, select data screen no. 15, ie. SSq. 21and Scrn 15, which is “Foreign Trade: Import Data”. Select the same and click on Subscreens in the left frame.
4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select the same. Click on tab view subscreen and ensure that the subscreen is blank.
5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 – 0001 and instead add SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.
6. Save the setting.
7. Create a Material Master and check whether in Screen Foreign Trade – Import, Excise related subscreen appears.