This document describes the standard process of raising a supplementary excise invoice and its subsequent capture at a depot, due to change in price of a product for which stock transfer has already been completed from Manufacturing Unit to Depot. Even though this is a standard SAP functionality from SAP for CIN, I found many people are unaware of how to use it and hence, thought of creating this document.
This is my first document on SCN. Looking forward to constructive criticism from experts.
The distribution chains of most manufacturing companies in India have a manufacturing plant transferring their stock to a depot before sale to the customer.
A manufacturing plant is registered with the Central Board of Excise and Customs (CBEC) as a manufacturer of dutiable goods and can maintain RG23A, RG23C and RG1 registers.
A depot or a warehouse is one which is not involved in manufacturing activities, however they receive cenvatable goods from either a manufacturing plant in the same company or from an excise registered external vendor and sale to customers issuing Cenvatable invoices. Such depots are registered as first stage dealers and have to maintain RG23D registers.RG23D entries are always in reference to a parent manufacturing plant/vendor invoice.
In certain cases, after the stock transfer is complete, the goods may lie for some time at the depot before being sold to the customer. It may so happen that at a later date the price of the material changes in depot with retrospective effect. In such circumstances the manufacturer (own plant/vendor) will pay the additional duty via A-Certificate and send the details to the depot.
User can enter a new A-certificate by entering the number , date and amounts for the A-certificate against a RG23D Folio. This is possible only if some quantity is still available for future despatches. If the invoice is fully despatched then you cannot enter an A-certificate.
I have elucidated below the transaction flow with assumption that the manufacturing plant belongs to the same company. In case the plant is of a different company/external vendor, only the steps ‘Activities to be performed at depot’ will be valid.
- The plant for which the transaction is run should be marked as Depot in CIN IMG
- The excise invoice should have been captured in the depot using Excise capture at depot
- RG23D should be maintained in the depot.
- Folio number generation has to be active in the depot for the excise group used.
Activities to be performed at the manufacturing plant:
- The excess Basic Excise Duty, Education Cess and Secondary and Higher Education Cess as a result of the price increase have to be calculated. For most materials this will be 12%, 2% and 1% respectively.
- Creation of Excise JV (for Supplementary Excise)
3. Enter the requisite document date and posting date for the supplementary invoice.
5. Enter the Material Number, Quantity Dispatched and the Batch as shown. This should be the same as the original delivery sent to the Depot.
Scroll to the right to enter the BED, HE Cess and SHE Cess as calculated in Point number 1.
Note: The duties should be entered batch-wise. If there were multiple batches in the initial delivery, include multiple lines in the JV screen
6. Click on ‘Determine G/L Accounts’
7. Against the G/L accounts automatically determined, enter the corresponding business area for the manufacturing plant.
8. Save the Excise JV and note the Number generated. This has to be communicated to the concerned Depot. Posting the Excise JV, affects the appropriate Excise and Excise Clearing Accounts at the Manufacturing Plant.
Actions to be performed at the Depot – Capturing the A- Certificate:
- Identify the Depot Excise Invoice Number which was entered into RG23D during the initial Goods Receipt using J1IG at the depot.
The easiest way to search for J1IG invoices/folio numbers is through report J1I7. This report has numerous parameters including PO document/ Material document number to help search.
2. Open transaction J1IGA – Additional Excise entry at Depot
3. Enter the Original Depot Excise Invoice Number and the Excise year as identified in step 1.
4. Hit enter. The details of the Original Excise Invoice Captured are populated.
5. Scroll to the extreme right. In the column of ‘A certificate’ and ‘Certificate Date’, enter the Excise JV Number and Excise JV date respectively, as obtained from the Manufacturing Plant/external Vendor
6. Now enter the Additional BED, Additional HE Cess and Additional SHE Cess exactly as passed on from the Manufacturing plant, in the respective fields.
7. Hit Enter. At the bottom of the screen, the final BED, HE Cess and SHE Cess is displayed. Check the same and post the document.
8. Now, when the original Excise Depot Invoice is referred to during sale (using J1IJ), the additional Excise values will be displayed.
To display captured A certificates, use transaction J1IGAD with the internal invoice number.