CIN Process in SCM P2

8/6/2019 CIN Process in SCM P2

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SAP Labs India 2002 Uma Rani T M 1

Welcome to your Virtual Classroom Recorded Session!

-title -

-

R3 Enterprise withCountry Version IndiaPart2 CIN SCM

Approx. Length: 40 min


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Indian Legal requirements

R3 Logistics

You should have gone through the Part1 of this

VC series

Prerequisites:


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Objectives

At the conclusion of this course you will be

able to:

Understand the functionalities provided in CIN with

Enterprise version of R3 in LogisticsIdentify the enhancements made to CIN in R3

Enterprise in Supply chain management area


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Chapter 1 CIN Processes in SCM1

1

Session Overview

Chapter 2 Summary2

2

1

1 2

2Chapter 1 Summary


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Pre delivered company code with all associated data

Country install program takes care of copying all

organization elements forIndia

Separate Factory calendar forIndia which suits Indian

requirements

Pricing is pre delivered with all possible options

Standard sample CIN customizing delivered

Business Configuration Sets with all customization forIndia

Helps copying

Selective updation

Pre Delivered Customization New


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Integrated Master Data Maintenance New

CIN Material Master data along with Standard Material Master

CIN Customer Master along with Standard Customer Master

CIN Vendor Master along with Standard Vendor Master

Option to de-link from standard maintenance

Existing CIN

Master Data maintenance is also possibleData is available only in CIN masters

Advantages

Seamless maintenance

Data storage ensured

Chances of Missing reduced

No changes to reporting or other processing


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CIN Tax Engine A move into CRM

Calculation fully condition technique based

Pricing conditions,Accesses and Procedure pre delivered

Rates determined based on

Plant

Chapter id

MaterialRegion of plant and ship to party

Tax classification

Only one tax code required for the postings of Sales tax

Account determination fully integrated with standard

Compatibility with CRM and other products

Easy maintenance

Extensibility


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CIN Tax Engine A move into SRM

Based on condition technique

Integrated with Tax calculation of FI taxes

Rates determined

Plant

Chapter-id

Material

Vendor

Material group

Posting using tax codes

Minimum tax codes required

Rate changes easily mapped

Compliance with SRM and other solutions


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New customers can immediately go for the new procedure

Upgrade customers can continue with the existing masters

and calculation

Phased shift to the new procedure possible

Both new and old calculation methods can co-exist

You can have all follow on functions for the orders created

with the old calculation method

No changes to rest of the CIN functionality

CIN Tax Engine Upgrades


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Pur

r f r fr

t r

r f r fr t tur fr ust r

r

sf

r fr

!

ubcontr

ctor

At"

ctor#

Purchase Transfer from actor

Transfer from epot eturn from ustomer

Trans fer from!

ubcontrac tor

At$

epo t

%

ece ipt of&

aterial

Receipt of Material - Highlights

Calculate or Manual excise in PO

Capture of Excise Invoice

Inventory Valuation with Excise

Posting of CEN

VA

T CreditRegister Update (Plant and Depot)

Excise along with Enjoy Goods Receipt

Invoice Verification with ExciseCENVAT Credit Accounting -

Fully Integrated in the

Procurement Process

CENVAT Credit Accounting -

Fully Integrated in the

Procurement Process


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Receipt of Material Basic Excise Tax Functions

Excis e In vo ice

C a p ture

G o o d s R e c e ipt

Invo ic e Ve rifica tion

Excis eInvo ice

V erific ation

P urchase rde r

50% CEN

VA

T Credit onCapitalGoods

Follow-on functions forCapital

Goods

CENVAT forCVD

SeparateExchangeRate forCVDAlternateAccount Determination

Profit CenterAccounting

MultipleRegistrationsperPlant

Depotsat ExciseGroup LevelMultipleGRsperExciseInvoiceat ExciseGroup level

Decide the time forcreationofPart1

Manual Exciseat PO

ExciseInvoice Query

List ofGRs without ExciseInvoice


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Excis eInvo ice

C a p ture


Inv o ic e Verifica tion

ExciseInvo ice

V erific ation

P urchase O rder

Default Quantity fromExciseInvoice

Quantity MismatchIndicator

50% CENVAT Credit onCapital Goods

Follow-on functions forCapital Goods

CENVAT forCVD

SeparateExchangeRate forCVD

AlternateAccount Determination





Manual Exciseat PO

ExciseInvoice Query



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Excis eInvo ice

C a p ture


Inv o ic e Verifica tion

ExciseInvo ice

V erific ation

P urchase O rder

Default Quantity from ExciseInvoice

Quantity MismatchIndicator

50% CENVAT Credit onCapital Goods

Follow-on functions forCapital Goods

CENVAT forCVD

SeparateExchangeRate forCVD

AlternateAccount Determination


InvoiceVerification withExciseandCVD

Support ofEvaluatedReceipt Settlement (ERS)

VendorPayment withCENVAT Credit on Hold




Manual Exciseat PO

ExciseInvoice Query



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Excise Invoice Capture & Post (EICP)


In vo ic e Verifica tion

Excis eIn vo iceC a pturea n d V erific a tion

P urc h a s e O rd er

Single-step, single-screenEnjoy Transaction (J1IEX) forExciseInvoice

Capture & Post (EICP)Customizable Field Selection forEICP

Customizable TransactionCodes forEICP

SeparateRoles forCapture/Display/Change/Cancel/Post

Message log


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Goods Rec eipt

Invoice Verification

Excise Invoice

Capture and Verification

Purchase O rder

EICP with Reference to

Multiple POs

Without PO

Plant to Plant transfers

Single-step, single-screen Enjoy Transaction (J1IEX) for Excise Invoice Capture & Post (EICP)

Customizable Field Selection for EICP

Customizable Transaction Codes for EICP

Separate Roles for Capture/Display/Change/Cancel/Post

Message log


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Goods Rec eipt


Excise Invoice


Purchase O rderEICP with Reference to

Multiple POs

Without PO






Message log

Excise material type at line item level

Rejection Codes to Block CENVATAvailment

Reset to Initial Tax Values During EICP

Recalculate tax values based on rate changes

during EICP


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Goods Rec eipt


Excise Invoice


Purchase O rderEICP with Reference to

Multiple POs

Without PO






Message log

Display ofNon-

Deductible and Deductible

Taxes

Simulation of CENVAT

Postings

Postings at line itemlevel

Display of Part I & II

Entries

Excise material type at line item levelRejection Codes to Block CENVAT

Availment

Reset to Initial Tax Values During EICP

Recalculate tax values based on rate

changes during EICP


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Goods Movement Overview In MIGO New

Manufacturing Plant

Depot


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Manufacturing Plant

Depot

Supplying Plant Other PurchasesVendor


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Manufacturing Plant

Depot

Subcontractor



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Manufacturing Plant

Depot

Subcontractor

Scrap Vendor


Receiving Plant


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Manufacturing Plant

Depot

Subcontractor

Scrap Vendor

Supplying Plant Other Purchases

Vendor

Vendor

Receiving Plant

OtherIssues


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Excise Invoice Capture @Plant

Excise Invoice Capture & Post at the time of Goods receipt

using MIGO

Excise Invoice Capture in MIGO followed by separate

posting at Excise cell using J1IEX

Excise Capture before Goods receipt, Referencing the

Excise invoice during Goods receipt using MIGO followed

by separate posting

Only Part1 creation during Goods receipt, Excise invoicecaptured and posted later

No Excise transaction during Goods receipt using MIGO


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Excise Invoice Create @Plant :

Out going Excise Invoice Creation and Posting when Goods

return is done using MIGO

Only creation of Outgoing Excise invoice along with Goods

issue followed by posting using Excise other movements

No Excise Entry at the time of Goods issue using MIGO


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Excise Invoice Capture @Depot

Excise entries for the depot in RG23D can be captured at

the time of Goods receipt through MIGO

RG23D entry for an Existing Invoice created in Factory can

be done while doing Goods receipt for a Stock transport

order using MIGO

Switch off RG23D functionality altogether


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RG23D selection @Depot

While doing Goods issue using MIGO, RG23D selection and

posting can be done

At the time of Goods issues you can do only selection of

invoices from RG23D and posting can be done later

At the time of MIGO, you need not do any selection at all


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Working with Subcontractors - Highlights

hallan om l tion

Quantit R conciliation

oods R c i t

hallan r ation

Transf r Posting

Purchas rd r

CENVAT Reversal forNon-receipts

CENVAT Re-credit

Handling of Kits and Multiple-lot Dispatches

Multiple Challans for a Transfer Posting

One-step Challan Creation and Printing

Reconciliation Workbench

Multiple Challan References per GR

Full-Cycle Monitoring of 57F4 Process Status

Annexure IV Report

57F2/F3 Process

Closed-Loop Control of

Subcontracting Process

Closed-Loop Control of

Subcontracting Process


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Removal of Goods - Highlights

Printing of Excise Invoice

Posting of Excise Tax Liability

Optional Combination with Commercial Invoice

Optional Excise Invoice Split

Register Update (Factory and Depot)

Full Compliance across the

Distribution Processes

Full Compliance across the

Distribution Processes

Sale Transfer to Factory

Return to Vendor Transfer to Depot

Return to Customer Transfer to Subcontractor

From Factory

Sale Transfer to Factory

Return to Vendor Transfer to Depot

Return to Customer Transfer to Subcontractor

From Depot

Removal ofGoods


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Automatic Determination of Excise and Series Group

Excise Invoice Creation in Background

Removal of Goods Basic Excise Tax Functions

Excise cum Commercial

Invoice

Excise Invoice

Commercial Invoice

Commercial Invoice

Excise Invoice

Proforma Invoice

Goods Issue

Delivery

Customizable Layout Set for Printing of Excise Invoice

Capture of Pre-Printed Excise Invoice Number

Document Flow for Excise Invoices

Separate Exchange Rate for Export Invoice

Use of Tax Classification for Excise Concession Forms

Streamlined Excise Tax

Processing

Streamlined Excise Tax

Processing


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Excise Invoice Creation

ExcisecumCommercial

Invoice

ExciseInvoice

Commercial Invoice

Commercial Invoice

ExciseInvoice

ProformaInvoice

GoodsIssue

Deliver

ImmediatePayment ofCENVAT

ExciseInvoices forInter-company transactions

Posting ofCENVAT toProfitability Segments


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Depot Movements

Default of PO Values at Depot RG23D Entry

Entry of CESS During Depot Receipt of Excise Invoice

CVD Entry at Depot

Supplementary Invoice Receipt at DepotSupplementary Invoice Selection at Depot Sales

Depot Stock Display

Transfer to Depot

rom actory

Sale

rom Depot

Removal of Goods

Purchase Transfer from actory

At Depot

Receipt of aterial


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Adjustments and Reversals - Highlights

Management of CENVAT Credit for Capital Goods

CENVAT Reversals and Adjustments

One-Step Reversal of Excise Invoice

Flexibility for 100% ComplianceFlexibility for 100% Compliance

Scrap

Non-production use

Additional Excise Paid by Vendor

Deposit into PLA through TR6

Cancel Excise Invoice

ith Reference to External Document

CENVAT Adjustment


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Legal Reporting and Payment of Excise Duty - Highlights

Fortnightly Payment of Excise Duty

Annexure of all invoices in the payment

Update of Registers (CENVAT Part I, II, RG1, RG 23D, RT12)

Printing of Legal Reports (Monthly Return Under Rule 57AE)

Interface to External Reporting Tools

From Material Movement to

Tax Remittance and Reporting

- A Fully Integrated Process

From Material Movement to

Tax Remittance and Reporting

- A Fully Integrated Process


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Excise Bonding Master Data

Maintenance of Bond Master Fixed and Running Bonds

Create/Change/Cancel/Close

Foreclose

Extend

License Master Quantity Based and Value Based

Create/Change/Cancel/Close

Extend

Foreclose


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Excise Bonding Business Flow

ExporterManufacturing

Exporter

ARE1

Excise Invoice

Nil duty


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Business Flow


Exporter

Customs

Shipping

Documents

ARE1

Excise Invoice

Nil duty

ARE1

Copy

B i Fl


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Business Flow


Exporter

BankCBEC

Issuing BankCentral Excise

Customs

Shipping

Documents

ARE1

Excise Invoice

Nil duty

ARE1

CopyARE1

Sealed

ARE1

Counter Signed

B i Fl


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Business Flow


Exporter

BankCBEC

Issuing BankCentral Excise

Customs

Shipping

Documents

ARE1

Excise Invoice

Nil duty

Shipment of Goods

ImporterImporterARE1

CopyARE1

Sealed

ARE1

Counter Signed


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Under Bond / Letter Of Undertaking

Creation ofARE-1 document with reference to outgoingexcise invoices.

Option to Print ofARE-1 document.

Add or remove invoices from ARE-1

Change the Bond/LOU associated in the relevant cases

Cancel/ReverseARE 1

Track the ARE-1 document till the export is completed.

Various stages of Export process

Counter signing ARE

Submission ofARE to ExciseProof of Export


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Rebate

Create Excise invoice and pay the duty

Creation ofARE-1 document with reference to outgoingexcise invoices.

Option to Print ofARE-1 document.

Add or remove invoices from ARE-1

Cancel/ReverseARE 1


Various stages of Export process

Counter signing ARE

Submission ofARE to ExciseRefund of Excise Duty


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Reporting

Annexure 19 Monthly return ofARE1s

Annexure 18 Proforma Running Bond report

Ageing Analysis ofARE

Bond Summary report


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Deemed Exports

Creation ofARE-3 document wrt outgoing excise invoices.

Printing ofARE-3 document.


License Summary

E ti H dli


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Exception Handling

Handling loss of goods in transit.

Reducing Quantity

Diversion of goods for domestic consumption

Reducing ARE Quantity

Provision to extend export period for theA

RE documentPenalty calculation

Duty and interest penalty payment

Oth I di t T Hi hli ht


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Other Indirect Taxes - Highlights

CST and LST rates

Sales Tax Setoff

Octroi

It is not just Excise...It is not just Excise...

S i O i


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Chapter 1 CIN Functionality11

Session Overview

11 Chapter 1 22 Summary

Chapter 2 - Summary22

S


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You are now able to:

Understand the Functionalities provided in R3 Enterprise

forIndia in Logistics

Enhancements made to CIN in R3 Enterprise in SupplyChain Management

Summary


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Thank you!

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CIN Process in SCM P2

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