CIN MM
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
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
CAPE- Capital Goods credit accounts
OTHR-
Excise Invoice for Other Movements
DLFC-
Factory Sale and Stock Transfer via SD
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
Account Dr.
Cenvat
Clearing Cr.
During Invoice Verification
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.
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.
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.
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