SAP Supported process for Import Purchase with CIN .
Pre requisites / Process steps :
3)Condition records (Optional) for JCV1, JECV, J1CV, JADC, JCDB, JEDB, JSDB (In order to auto populate the condition types in Imports Purchase order)Can also be entered manually during PO creation.
4)While creating import PO, in the rate field, enter the rate of CVD that will be levied on the material when it arrives at customs.
5)While creating PO under conditions tab select the custom condition types and click on detail and enter the vendor field, enter the vendor master record that you have created for the customs office.
6)The tax code used in the PO should be a zero rate tax code.
7)GR BASED IV should NOT be ticked in the PO. (Because Custom duty has to be paid first for Import purchases)
8)Ensure that the vendor,plant and material are relevant for excise.
9)Material should be declared as Raw or consumables as per requirement in J1ID.
10)Plant should be relevant for Excise.
11)Since Vendor excise details are not known in imports purchase, an hyphen must be entered in vendor excise details of J1ID.
12)The Customs MIRO should be done before MIGO with the said conditions.
13)The Customs MIRO should be done in currency INR only.
14)In MIGO in the commercial Invoice Pop up enter the customs MIRO number and year. Capture the Excise invoice here or you can do it through J1IEX as per your requirement.
15) Post the Excise in J1IEX.
16)MIRO should be done for Goods and also for planned deliveries (If any)
Configuration Part :
Create following condition types for Import Duties (Do not create any Z-condition type)
JCDB IN:Basic Custom Duty
JCV1 IN : CVD
JECV IN : Ed Cess on CVD
J1CV IN : H&SECess on CVD
JEDB IN : Ed Cess on BCD
JSDB IN : H&SECess on BCD
JADC Addnl Duty of Custom
SPRO > Logistics – General > Tax on Goods Movements > India > Basic Settings > Determination of Excise Duty > Maintain Excise Defaults > Here assign following for Tax Procedure;
CVD cond. – JCV1
ECS cond. – JECV
ADC cond. – JADC
Need not to maintain condition type “J1CV” in above option since it hard-coded in standard program itself.
SPRO > Logistics – General > Tax on Goods Movements > India > Basic Settings >Maintain Company Code Settings
Maintain Exchange rate type for CVD “ M” & CENVAT document type “ED”
CVD account (As per your requirement)
SPRO > Logistics – General > Tax on Goods Movements > India > Account Determination > Specify Excise Accounts per Excise Transaction Maintain the below entries.
GRPO IP CR CLEAR
GRPO IP DR ONHOLD
GRPO IP DR RG23AED
GRPO IP DR RG23AT1
GRPO IP DR RG23BED
GRPO IP DR RG23ECS
GRPO IP DR RG23SED
SPRO > Logistics – General > Tax on Goods Movements > India > Account Determination > Specify G/L Accounts per Excise Transaction
Maintain GL accounts against Excise transaction type GRPO, CAPE, EWPO, DLFC, DIEX with Sub transaction type IP here for your Excise group and Company code.
1)JCDB, JEDB, JSDB will get loaded to Stock and JCV1 (BED), JECV (ECS), J1CV (SEcess) and JADC (AED) will get posted to CENVAT Accounts.
2)For Validations on Commercial Invoice Pop up in MIGO transaction, refer SAP notes (1572603 & 1303077)
3)If you want to Inventorize the Cenvat in Import purchase, proceed with any of the following options.
a) You may change the excise material type under MIGO / J1IEX to “Non Cenvatable” then the Cenvat will be loaded on Inventory irrespective of Excise material type in J1ID.
b) You may also create four new condition types by copying JCV1, JECV, J1CV & JADC in M/06.
c)You may use the user exit J_1I7_USEREXIT_IMPORT_INV_DUTY. Refer SAP note 1021736
4)In standard imports Capital purchases, you cannot take the ADC (AED) 50% in First year and remaining in Second year. To enable 50% ADC credit on first year and remaining on subsequent years refer SAP note 1394771 & 1669512.
5)Important tables related to excise:
J_1IEXCHDR Excise Header table
J_1IEXCDTL Excise item table
J_1IGRXREF GR reference table for Excise
J_IPART1 Excise Part 1 table
J_1IPART2 Excise part 2 table
J_1IMOVEND Vendor Excise Details table
J_1IMTCHID Material & Chapter Id combination table
J_1IMVMT Movement types versus register relevance
I welcome comments / suggestions if any…
Ashok Kumar Telugu