1.1 CIN MM
1.1.1 Customization
- How
do I configure the system for partial credit functionality? (80:20 or 95:5
for Cenvatable: Inventorisable)
The relevant tax code should be configured with the
required ratios for deductible and non-deductible tax components (JMO1 and JMO2
respectively).
The partial credit indicator at the excise
registration ID level should also be
marked.
- What
are the settings involved to run the stock transport orders through the
GRPO route?
For a receiving plant a customer has to be created.
For an issuing plant a customer and a vendor has to
be created and this vendor is to be linked to this customer.
Both the customers have to be assigned to the plant
in the Stock Transport Order settings. (Transaction:OMGN)
- How
do I change the debit account that is proposed in Excise JVs?
In the company settings of CIN IMG select the
indicator “Debit Account Overwrite” for the required company code.
- What
is the difference between the ‘Depot’ indicator at the plant and the same
at the excise group level?
At excise group level: It indicates that for the
particular combination of the excise group and the plant, the plant will function
as a depot.
At plant level: Irrespective of the plant being
attached to any excise group, the plant attached to all the excise groups will
function as a depot.
The setting at the plant level takes precedence
over that at the excise group level.
- Can
I change the non-cenvatable condition types that have been delivered?
No. The delivered non-cenvatable condition types
(e.g. JMO2 etc.) are to be used as they are.
- Can
the excise popup be made to appear for any movement type?
The excise popup will appear for all those movement
types that have been delivered for CIN, provided these movement types are
maintained in the CIN IMG settings.
Note: The users can create a copy of these
standard movement types (delivered for CIN), and maintain the entry in the CIN
IMG for the popup.
- Can
I segregate different actions and reference documents combinations for
incoming excise invoice transaction (J1IEX)?
Yes. The user has two broad options for the
combinations of the actions and reference documents for the incoming excise
invoice transaction.
Define processing modes per transaction:
Here the user can decide the processing modes
associated with the transactions. For e.g. for J1IEX capture, post, change,
display and cancel options are available, while for J1IEX_C only capture and
display options are available. The user has the freedom to change the delivered
settings.
Define Reference Documents Per Transaction:
Here the user can decide the combination of the
processing modes with the reference documents. For e.g. for the processing mode
“Capture Excise Invoice” one can choose reference documents such as PO , GR, STO etc.
The user has the freedom to change the delivered
settings.
- Where
will I change the input/output attribute of a field of the incoming excise
invoice transaction?
In CIN IMG, under the Incoming Excise Invoices node
the user can change the attributes of certain fields.
The user cannot add any additional fields other
than the delivered ones.
- In
the subcontracting attributes (CIN IMG) what is the difference between
Movement Type Group Issues and Movement Type Group Receipts?
Movement types that issue material from the plant
to the subcontractor are grouped under the movement type group issues.
Similarly, the movement types that consume the materials when the processed
goods are received into a plant are grouped under the movement type group
receipts.
- In the Subcontracting Challan, How should I maintain number ranges for each series group?
Subcontracting Challan number ranges should not
overlap between series group. For e.g it should NOT
be as follows:
Series Group S1 :
000010000 to 000050000
Series Group S2 :
000020000 to 000050000
- Which are the Number range
objects for which number ranges needs to be maintained?
Internal Document -
J_1IINTNUM
RG23A Part1 and Part2 for
all excise groups - J_1IRG23A1 & J_1IRG23A2
RG23C Part1 and Part2 for
all excise groups - J_1IRG23C1 & J_1IRG23C2
PLA Part2 for all excise
groups – J_1IPLA2
RG1 for all excise groups
– J_1IRG1
RG23D Folio Number
Generation – J_1IRG23D
Outgoing Excise Invoices
against all series groups - J_1IEXCLOC
& J_1IEXCEXP
Depot Excise invoice
number – J_1IDEPINV
Dispatch Register Serial
number – J_1IINTPR2
Subcontracting Challan
against all series group – J_1I57FC
1.1.2 Procurement
- How
is the “GRs per EI setting” (at the excise group level in CIN IMG)
decided?
CIN provide three options to avail CENVAT credit
based on this setting.
Multiple GR against single excise invoice, single
credit:
The excise invoice can refer to multiple goods
receipts, but the credit can be availed for the entire excise invoice in one
shot.
Multiple GR against single excise invoice, multiple
credit:
The excise invoice can refer to multiple goods
receipts, and the credit can be availed individually for each goods receipt.
If none of the options mentioned above are chosen:
The excise invoice can refer to a single goods
receipt, and the credit can be availed for the entire excise invoice in one
shot.
The user can decide the option based on the
business requirement in the implementation phase. It is advised that the
setting is not changed subsequently.
Note: This setting no longer exists at the plant
level.
- Can
I have multiple accounts for the same process?
Yes. This is possible by using the option of
subtransaction type in association with the transaction type.
- What
will transaction type do?
CIN uses transaction type as a way of
differentiating between the various excise related processes. They are:
GRPO – Goods receipt for purchase order in
Plant. Also used in Depot for a PO and
material document
EWPO – Excise invoice
without purchase order
57FC -
Subcontracting Challan
57NR – Reversal and Recredit for Subcontracting Challan
OTHR- Excise Invoice
for Other Movements
DLFC- Factory Sale
CEIV- Cancellation of
Generated Excise Invoice
DIEX- Differential
Excise Invoice Credit
MRDY- Excise Duty
reversal without reference
MRRD- Excise Duty
reversal if material used for non-production
MRWO- Excise Duty
Reversal for Write off Cases
TR6C - PLA account
adjustment through TR6 Challan
UTLZ- is used for
determining the accounts when a JV is posted with an option of fortnightly
payment
The Transaction type
that are not used : 57CM, 57GR, CAGI, CAGR, GRTR.
- Can
I have my own transaction types?
No. Various transaction types are used by CIN and
are predelivered.
- Does
the system determine the modvat clearing account during invoice
verification?
Yes, provided the purchase order has deductible
excise duty.
- What
is EWPO? When do you use it?
EWPO stands for excise invoice without purchase
order. For e.g. Excise invoice of free samples are captured in the system using
EWPO.
- What
is the functionality of the rejection code/reason code?
For some reasons if the user wants to withhold the
availement of CENVAT credit, he can do so by posting the excise invoice with a
reason code. This reason code will post the credit amount to an ONHOLD account.
The user can later post this ONHOLD amount to the CENVAT accounts. There is an
indicator associated with the reason code in CIN IMG, which will decide the
posting of the credit amount to ONHOLD.
Note: It is recommended that separate GL
accounts for ON-HOLD account for transaction type GRPO and CAPE . Account at GRPO will be used by Rejection
code and the one at CAPE will be used for
subsequent credit of capital goods.
During Excise Invoice cancellation, reason code can
be used.
- After
the transaction J1IEX has been executed, what is the significance of the
status popup?
The status popup is a way to give information to
the user of the various excise entries that happen during the course of running
the transaction. For e.g. the status Part1 number: N.A. means that no part1
number was generated during the course of running the transactions.
- What
does the ‘Restore Defaults’ checkbox on the Duty Values item tabstrip of
J1IEX do?
Restore defaults option restores the material type,
duty rates, quantities, duty values for that line item to the original values
that were defaulted the time when the transaction is run.
- I always get the Item ok in J1IEX transaction as selected, how do I avoid that in case I don’t need the Item ok selected by default?
Mark the User Parameter ID ‘J4X’ with ‘X’ for a
User ID.
- Can
you explain the different rows of duties on the Duty Values item tabstrip
of J1IEX?
Credit availed: Excise duty whose credit has
been availed.
Inventorized duty: It is the excise duty for
which credit has not been availed but has been added / will be added to the
material cost.
Credit due: Excise duty whose credit has not
been availed because the goods have not been received and entered in the RG23
Part1 register.
Credit Available: Excise duty whose credit
has not been availed, but the goods have been received and entered in the RG23
Part1 register.
ST: Sales Tax for the line item.
- What
does the ‘Calculate excise duty based on rates’ checkbox on the Duty rates
item tabstrip of J1IEX do?
The user has the option of changing the duty rates
for the line items in the excise invoice. If the user wishes to change the duty
values based on the changes in the duty rates he needs to select the ‘Calculate
excise duty based on rates’ checkbox.
- What
is a single step credit availment process?
The process of capturing the excise invoice and
availing credit of excise duty in a single step is now possible if the excise
is captured with reference to a goods receipt for a purchase order. This is
possible even in the EWPO cycle.
- When
are the ‘Simulate CENVAT Credit’ and the ‘Post CENVAT’ buttons active?
These buttons will be active if the entry has been
posted in the RG23 Part1 register for the GRPO cycle and there is credit
available to be availed.
These buttons will always be active during the EWPO
cycle.
The user should have the necessary authorization to
post an excise invoice.
- While
capturing an excise invoice for EWPO (without reference to any material
document), how does one enter multiple lines?
For the first line item the user needs to enter the
details of the line item such as the material number, plant, chapter ID, duty
rate, quantity etc. follwed by pressing ENTER. To enter a new line item the
user needs to press the ‘Next Item’ Button.
- When
price control 5 is set for a purchase order, how is excise duty computed?
The base
value of the material is the value on the date on which the vendor's excise
invoice is created.
The duty is computed on this base value.
- How
are the accounts determined when capital goods are procured?
When cenvat credit for the
capital goods are availed for the first 50%, the credit accounts are picked
from GRPO transaction type and debit accounts from the CAPE .
During Subsequent credit
availment both credit and debit entries are picked from CAPE .
- What needs to be done if the Excise Invoice quantity is not equal to GR quantity?
Excise Invoice Quantity is
less than GR quantity: System will default warning message and this can be
configured in CIN IMG as required. Apart from that the Part1 entry will be done
only for the open quanity in the excise invoice. And the remaining will not
appear in the excise registers. Since nothing can be done about it, ensure you
do another GR for the difference quanitity with no excise entry. Or in the case
excise invoice for this difference will be dispatched by the vendor later, you
can create a separate GR and just create a Part1 entry.
Excise Invoice Quantity is
greater than GR quantity: Credit will be allowed only for GR quantity. To take
credit for remaining check your Multiple GR for an excise invoice setting at
excise group.
- 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 Clearing Cr.
During Invoice Verification
Vendor Payable Cr.
For Domestic
proceurement of Capital Goods
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Clearing Cr.
During Invoice Verification
Vendor Payable Cr
Subsequent
of Capital Goods
Cenvat On-hold Cr. (50%)
For Import Procurement
of Raw Material
During Customs Duty Clearing invoice
Custom Clearing Dr
Custom Payable Cr.
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Custom Clearing Cr.
During Invoice Verification
Vendor Payable Cr.
For Excise Duty Credit
of Raw Material without PO
Cenvat Clearing Cr.
For Excise Duty
Reversal through Excise JV
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 payable Cr.
For
TR6C Challan
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.
1.1.3 Subcontracting
- How
is the recursive BoM scenario (the parent and the child material being the
same) handled in subcontracting?
The movement type group for receipts should hold
the 543-movement type only instead of the 101-movement type.
- For
which of the movements will I run the Quantity Reconciliation for the
subcontracting challan?
Quantity reconciliation is run for the movement
types that automatically generate the consumption line, for e.g. movement 105,
101. This transaction is also run for reversals of issue movements, for e.g.
542.
- How do I delete challans assigned to the Goods Receipts document?
Goto transaction for Quantity Reconciliation
(J1IFQ). Use Menupath Quantity Reconcile->Delete assigment
- What should be my accounting entry in subcontracting reversal / Recredit ?
For Subcontracting
Challan Reversal
Cenvat Account Cr.
For Subcontracting
Challan Recredit
Cenvat Reversal Cr.
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