FI_UD3_ACCOUNTS_PAYABLEDOC

Triveni Engineering & Industries Limited

Finance User Document

for

TEIL SAP Implementation

(FI UD Ver 1.0)

Version 1.0

Volume 3 of 4

Note: This is a hard copy of a document maintained on electronic media. It may not be the latest version.

Ascertain the latest version from the Document Master List available with the Project Leader.

Tata Consultancy ServicesBANGALOREFebruary-2003

Finance User Manual Version 1.0

About SAP R/3 Financials user document

Purpose

The purpose of this document is to describe the terms and terminology and procedures to be followed for using the SAP R/3 Financials Accounts Payable transactions

Audience

This document is intended for users of TEIL Finance & Accounts. This document assumes you are familiar with Windows environment.

Uncontrolled when printedTATA Consultancy Services


Conventions Used

Typeface/symbol Indicates

Bold 1) Menu paths to access a particular transactionExample From the main menu, choose Transaction accessed via - Accounting Financial Accounting Accounts Payable Document Entry Invoice Create Initial screen is displayed

2) Where ever stress has to be made on a particular point.

Italic For reference notes Example Note

TCode Transaction codes to go to particular transactionExample TCode - is used for notification



Abbreviations and Acronyms used

Abbreviations and Acronyms used in this document are listed below

Abbreviations or Acronyms Its expanded from

A/c account

A/P Accounts Payable Sub module

A/R Accounts Receivable sub module

AA Asset Accounting sub module

Acct Account

BED Basic Excise Duty

BS Balance Sheet

FI Financials Module

G/L General Ledger

GR Goods Received

Inr Indian Rupee

IR Invoice Received

P/L Profit &Loss account

PLA Personal Ledger Account

TDS Tax Deducted at source



TABLE OF CONTENTS

3 ACCOUNT PAYABLE 1

3.1 Master Records................................................................................................................13.1.1 Create / Change / Display / Block / Unblock Vendor Master Record..........................1

3.2 Postings............................................................................................................................ 13.2.1 Invoice........................................................................................................................ 13.2.2 Park invoice................................................................................................................33.2.3 Vendor Credit memo...................................................................................................43.2.4 Park credit memo........................................................................................................53.2.5 Outgoing payment.......................................................................................................53.2.6 Down payment............................................................................................................63.2.7 Down payment clearing..............................................................................................6

3.3 Document......................................................................................................................... 63.3.1 Change....................................................................................................................... 63.3.2 Change line items.......................................................................................................63.3.3 Display document / Display changes..........................................................................63.3.4 Individual document reversal......................................................................................73.3.5 Mass reversal..............................................................................................................73.3.6 Post / Delete parked documents.................................................................................7

3.4 Account............................................................................................................................. 73.4.1 Display balances.........................................................................................................73.4.2 Display line items........................................................................................................73.4.3 Change line items.......................................................................................................73.4.4 Clear open items.........................................................................................................73.4.5 Reset cleared items....................................................................................................8

3.5 Cheques............................................................................................................................ 83.5.1 Cheque Creation.........................................................................................................83.5.2 Cheque change.........................................................................................................213.5.3 Cheque display.........................................................................................................223.5.4 Cheque Register.......................................................................................................233.5.5 Canceling a Cheque payment...................................................................................253.5.6 Reprinting a Cheque.................................................................................................27

3.6 Tax Deducted at Source ( TDS )....................................................................................293.6.1 TDS at the time of Down payment............................................................................293.6.2 Tax deduction in case of invoice...............................................................................333.6.3 Clearing of Invoices Against Down Payments...........................................................363.6.4 TDS in case of outgoing payment against an existing invoice..................................403.6.5 Extended Withholding Tax-Adjust Post Vendor JV (transaction J1INJV)..................453.6.6 Creation of Remittance challan.................................................................................483.6.7 Reversal of TDS remittance Challan.........................................................................503.6.8 Receipt of Bank Challans..........................................................................................503.6.9 To print Withholding Tax Certificates........................................................................523.6.10 Withholding tax Information System..........................................................................543.6.11 Calculation of Withholding Tax on Clearing Accounts...............................................583.6.12 Clearing of Withholding Tax on Clearing Accounts...................................................62

3.7 Cenvat............................................................................................................................. 643.7.1 Remittance of Excise Duty Fortnightly......................................................................643.7.2 Making Adjustment Postings for Money Transferred to PLA.....................................713.7.3 Making Adjustment Postings for Additional Excise Paid by Vendors........................743.7.4 Other adjustment postings........................................................................................803.7.5 Excise registers.........................................................................................................873.7.6 RT 12 Reports...........................................................................................................903.7.7 Proforma for monthly return......................................................................................983.7.8 Transfer of CENVAT Credit on Capital Goods........................................................101

3.8 Closing.......................................................................................................................... 1023.8.1 Valuating open items..............................................................................................102



3.8.2 Carrying forward balances......................................................................................102



3 Account payable

3.1 Master Records

3.1.1 Create / Change / Display / Block / Unblock Vendor Master Record

Transaction accessed via - AccountingFinancial AccountingAccounts Payable Master recordsMaintain Centrally

Alternatively, the same can be done through Materials Management module. In TEIL vendors are created and managed in MM Module. Refer to Materials Management User manual for details.

3.2 Postings

Accounts Payable transactions (Invoices) primarily come from the Materials Management (MM) module. FI is used for recording Vendor invoice information and matching against the MM source. Although the majority of Vendor invoices are received through MM, some vendor payables may be processed directly through FI. Such Payables are processed in Finance module without a Purchase Order.

3.2.1 Invoice

Transaction accessed via - Accounting Financial Accounting Accounts Payable Document Entry Invoice

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Enter the values for the fields. You can use the following table for reference.

Field Description Valid values Example RemarksTransaction InvoiceVendor Vendor code number in SAPInvoice date Date of invoicePosting date Date which is used when entering

the document in Financial Accounting

Reference Other party’s reference number can be entered here

Amount Value of the vendors lien itemText Item TextG/L acct GL acct numberD/C Debit / Credit indicatorAmount in doc.curr.

This line items amount

Bu Business areaCost center CEO -

OFFICE

Then go to the payment tab and fill the required details




Field Description Valid values Example RemarksBaselineDt Date from which payment terms

are applicablePmnt terms Vendor terms of payment

Press button to see the over view of the document

Press the to Save the document, once it is complete. The system generates the document number

3.2.2 Park invoice

A preliminary posting of a transaction (parked invoice) allows for entry of the invoice without database update. This may be necessary if complete invoice information is not available, is incomplete, or if data entry is interrupted. Preliminary posting allows for documents to be saved in the system without passing standard document validations i.e. documents may be unbalanced (debits do not equal credits), required data may be left blank. Preliminary postings do not update the G/L database. Standard document validations are invoked when the preliminary postings are posted to the G/L database through a separate process.

Access transaction via - AccountingFinancial AccountingAccounts PayablePostings Park invoice.

This transaction is similar to Invoice posting explained in the previous section, but no accounting document is generated. A parked document has to be posted to generate accounting document. Posting



a parked invoice is explained in further sections. Posting the parked invoice is explained in further sections.

3.2.3 Vendor Credit memo

A vendor may be issued a credit/debit memo for numerous reasons such as inadequate goods, damaged goods, etc. Regardless of the reason, the posting is similar to other standard document postings within the SAP R/3 system. The basic document entry requirements are the same, in accordance with certain configuration settings. Once posted, the credit memo is applied against the vendor account balance, and subsequently offsets future billings

Access transaction via - AccountingFinancial AccountingAccounts PayablePostings Credit Memo

The data entry in this transaction is also similar to Invoice entry.


Field Description Valid values Example RemarksTransaction Credit memoVendor Vendor code number in SAPDocument date

Date of credit memo

Posting date Date which is used when entering the document in Financial Accounting


Amount Value of the customers transaction Text Item Text



G/L acct GL acct numberD/C Debit / Credit indicatorAmount in doc.curr.

This line items amount

Cost center CEO-OFFICE

Bu Business area

Press button to see the over view of the document

Press the to Save the document, once it is complete. The system generates the document number

3.2.4 Park credit memo

Access transaction via - AccountingFinancial AccountingAccounts ReceivablePostings Park Credit Memo

Similar to parking invoice. Refer to section 2.2.2 for further details.

3.2.5 Outgoing payment

Access transaction via - Accounting Financial accounting Accounts Payable Document entry Outgoing payment Post

3.2.5.1 Residual Payment

A Residual payment is a payment that is posted to an account with the selected open item being cleared and creating a new line item with the balance amount. A new document number is allocated to the open item. The old open item is shown in the cleared items list.

Refer to section 2.2.5.1 for further details

3.2.5.2 Partial Payment



A partial payment is a payment that is posted to an account without any open items being cleared. You allocate this partial payment to an open item. When you post, the system selects the number of the original open item in the line item for the partial payment. The original open item and the partial payment remain open.

This transaction is similar to residual payment except that the original line item is not cleared off.

Refer to section 2.2.5.2 for further details

3.2.6 Down payment

Down payment is a special GL transaction. When down payment transaction is posted, the down payment amount is routed through ‘Sundry creditors control account (recon)’ liability account (Gl a/c no. 207001) and posted in ‘Sundry Creditors control a/c(Down Payments)’ asset account (GL a/c no 103103)

Access transaction via - Accounting Financial accounting Accounts Payable Document entry Down Payment Down Payment

Refer to section 2.2.7 for further details.

3.2.7 Down payment clearing

Access transaction via - Accounting Financial accounting Accounts Payable Document entry Down Payment Clearing

Refer to section 2.2.8 for further details.

3.3 Document

3.3.1 Change

Access transaction via - AccountingFinancial AccountingAccounts PayableDocument Change

Refer to section 1.5.1 for further details

3.3.2 Change line items

Access transaction via - AccountingFinancial AccountingAccounts Payable Document Change line items


3.3.3 Display document / Display changes

Access transaction via - AccountingFinancial Accounting Accounts Payable Document Display / Display changes


3.3.4 Individual document reversal

Access transaction via - AccountingFinancial Accounting Accounts Payable Document Cancel/ReverseIndividual document




3.3.5 Mass reversal

Access transaction via - AccountingFinancial Accounting Accounts Payable Document Cancel/ReverseMass reversal


3.3.6 Post / Delete parked documents

Access transaction via - AccountingFinancial Accounting Accounts Payable Document Parked itemsPost/Delete


3.4 Account

3.4.1 Display balances

Access transaction via - AccountingFinancial Accounting Accounts Payable Account Display balances


3.4.2 Display line items

Access transaction via - AccountingFinancial Accounting Accounts Payable Account Display line items


3.4.3 Change line items

Access transaction via - AccountingFinancial Accounting Accounts Payable Account Change line items

Similar to section 2.4.3. Only the allocation and text fields can be changed in the line item.

3.4.4 Clear open items

This transaction can be used to clear normal open items as well as special GL transactions such as Down payments in the customer account

Access transaction via - AccountingFinancial Accounting Accounts Payable Account Clear


3.4.5 Reset cleared items

This transaction is used to reset transactions that have been wrongly cleared

Access transaction via - AccountingFinancial Accounting Accounts Payable Document Reset cleared items




3.5 Cheques

3.5.1 Cheque Creation

Cheque can be created in following 3 ways.

3.5.1.1 Cheque creation at the time of payment document

In this transaction the Cheque is created the moment the payment document is posted. We can access this transaction from the following menu path AccountingFinancial Accounting Accounts Payable Document entry Outgoing payment Post + print forms


Field Description Valid values Example RemarksPayment Method

Payment Method for This Payment

House Bank All bank data is determined using this key

Check lot number

The check lot number represents a batch of consecutively pre-numbered checks, or serves as a number interval if the check number given is different to the payment document number.

Alternative form

Form for Payment advice

Printer for forms

Printer for Payment Forms ie cheque

Pmnt advice printer

Printer for Payment Advice



Print immediately

This will result in immediate creation and execution of spool request for cheque & payment advice printing



Press icon to enter the details.


Field Description Valid values Example RemarksDocument date

Date of payment



Type Document type KZDocument Header text

Common narration for all the line items can be entered here



Field Description Valid values Example RemarksCurrency / rate

For local currency, only ‘INR’ needs to be entered. In case of foreign currency, the currency code as well as the exchange rate has to be entered.

Document Number

System generated internal number

Period Defaults from the posting date


Vendor Vendor code in SAPText Item TextValue date Date of the cheque

can be entered here

Standard OIs Normal open items

Special G/L ind

For all line items in customer or vendor accounts which are updated to an alternative reconciliation account in the general ledger, the special G/L indicator determines which account is to be selected.

A for advances

Additional selections

Defaults to None, Can be changeable depending on the selection requirement

Press icon to select the items.



Select the line item for which the payment is being made. The selected amount will appear in blue colour. Also note that the cash discount amount is automatically calculated and displayed by the system on the basis of Payment terms. If we desire not to grant any cash discount then we clear the cash discount amount or change the amount. As the not assigned column displays ‘0’, we can simulate the document to see the over view.

Correct the line item appearing in blue. Enter the cost center and then post the document.



The system gives the following message .

Press enter , the system will give the following message stating that the print job for Cheque and payment advice is generated.

The Cheque number can be known from the Cheque print. Other wise we need to go to transaction FCH2 or alternatively go to the document display

Cheque number generated by the system is 1070005.



3.5.1.2 Cheque creation subsequent to payment document creation

Access the transaction via menu path AccountingFinancial Accounting Accounts Payable Document More functions Print Payment Forms

This method consists of two transactions. First the normal payment document is created. Subsequently we will go and create the cheque for the transaction.





Date of payment


Type Document type DZCurrency / rate


Document Number




Document Header text


Account ( under Bank data)

Bank GL acct number 220300



Field Description Valid values Example RemarksBusiness area

TURB

Amount Incoming payment amount

Text Item TextAccount Vendor code number in SAPAccount Type

K – Vendors

Special G/L ind


Standard OIs

Other than Sp G/l Open items



choose .

Select the line item for which the payment is to be made. Simulate the document and post when the document is complete.



Now for this payment document we create the Cheque payment through the following path.AccountingFinancial Accounting Accounts Payable Document More functions Print Payment Forms




Field Description Valid values Example RemarksDocument Number

Payment document number for which we want to create the Cheque

Payment Method

Payment Method for This Payment

Check lot number


Alternative form

Form for Payment advice ZFFIIOB03

Printer for forms


Pmnt advice printer


Print immediately


The system will display the spool requests created for the Cheque & the payment advice. When we go & see the print preview, the Cheque number can be seen as 1070006. Alternatively we can get the Cheque number from the procedure mentioned in the previous step.



3.5.1.3 Manual Cheque creation

When Cheques are prepared outside SAP, but if we want to keep the record in SAP then this transaction can be used. The system then allots this Cheque number to the particular document and as such avoids duplicating the number again. We can access this transaction from the following menu path AccountingFinancialAccountingAccountsPayableEnvironmentChequeinformation Create Manual Cheques



We need to give the payment document and also the Cheque number manually. Press enter


Field Description Valid values Example RemarksPayment Document Number

Payment document number for which we want to create the Cheque

Paying Company Code

STBG


Account ID This ID together with the ID for the house bank uniquely defines a bank account

Account number

Check lot number


Save and the system displays a message regarding the creation of a manual Cheque.



3.5.2 Cheque change

The check management function allows you to enter brief information about a check such as the check recipient (when the check is made out to an individual) as well as the date the check was cashed. We can access this transaction from the following menu path AccountingFinancial Accounting Accounts Payable EnvironmentCheque informationChangeAdditional info/cash.

We can add the check encashment date in this screen.

If the manual procedure for notifying payment of checks has been executed using an incorrect check number, you can rectify this by resetting the cleared items and deleting the payment data.



3.5.3 Cheque display

We can display more detailed check information both via the check number and via the payment document number. We can access this through the following menu AccountingFinancial Accounting Accounts Payable EnvironmentCheque informationDisplay For check / Payment document.

After entering the check number or the payment document number in question and choosing Enter, the system displays the check information.

Displaying for a payment document

Displaying for a Cheque


Field Description Valid values Example RemarksPaying Company Code

STBG



Account number

Check number

Number of the cheque as created in SAP



Press enter

From the check information display, you can request details on the check recipient and the check issuer as well as branch to display of the corresponding payment and invoice documents.Conversely, you can also branch to the check information display from the invoice document display. To do this, proceed as follows - Choose Document - Display. Enter the document number, company code, and fiscal year. Choose Enter. The system displays an overview of the individual items. Select an item and choose Environment - Check Information.

3.5.4 Cheque Register

To obtain a full overview of all check information stored in the system, choose the following from the Accounts Payable menu, Environment Check information Display Check register.Enter the required information like house bank, account ID and any other criteria desired.





STBG



Account number

General Selections

Further restrictions can be made like cheque number(s), Bank key, Bank account number etc.,

The system will display the list as per the selection parameters entered, separately for automatic Cheque s created through the system and

Also cheques created manually in the system.

We can double click on any of the line items and get more details and also display the accompanying documents or the respective payment document.



3.5.5 Canceling a Cheque payment

We can cancel the Cheque payment through the following path.Accounting Accounts Payable EnvironmentCheque informationVoidCancel payment

Fill the Cheque number and the void reason code





STBG



Account number

Checknumber Cheques number as created in SAP

Void reason code

Checks which are voided are allocated an explanation as to why they are not used as a means of payment

09 Reversed check payment

Reversal reason

Reason for reversing a document. 01 reversal in current period

Display the reversed document.

Go to environment and select check information. The system will display that the Cheque has been voided.



3.5.6 Reprinting a Cheque

When we a want a Cheque to be printed again , the path for the same is a as follows. Accounting Accounts Payable EnvironmentCheque Reprint





STBG



Account number

Checknumber Cheques number as created in SAP

Void reason code

Checks which are voided are allocated an explanation as to why they are not used as a means of payment

04 Ripped during printing

Reversal reason

Reason for reversing a document. 01 reversal in current period

Check lot number


Alternative form

Form for Payment advice ZFFIIOB03



Field Description Valid values Example RemarksPrinter for forms


Pmnt advice printer


Print immediately


3.6 Tax Deducted at Source ( TDS )

SAP allows you to:

Withhold tax at the time of invoicing, but also, in the case of goods receipts and down payments, prior to invoicing

Withhold tax on interest payments to customers

Set off any taxes that you have withheld prior to invoicing (for example, on down payments) when you create invoices

Remit taxes using challans

Generate withholding tax certificates for your vendors and customers

Prepare annual returns

3.6.1 TDS at the time of Down payment

Access the above transaction by the following menu path :

Accounting Financial Accounting Account Payables Document Entry Down Payment Down Payment





Date of payment





Currency / rate








Account Vendor code in SAPSpecial G/L ind


A for advances

Account Bank GL codeAmount Value of bank paymentValue date Date of the cheque

can be entered hereText Item TextBusiness area

TURB

The drill down of tax codes will show the tax type & tax code combination of D1 D1. Select the same.Note that if the code is not entered the TDS will not be calculated.




Field Description Valid values Example RemarksPurch.Doc. Purchase order number

created in SAP9000000036 10 1

Bus.Area Business area TURBNetwork Network number Here the PO had a

reference to PO & as such the network number has been derived from PO

Assignment Other party’s reference number can be entered here

Text Item Text

Go to document – simulate and see the overview of the transaction.



Save the document. The system will create a posting document.

3.6.2 Tax deduction in case of invoice

Access the above transaction by the following menu path, AccountingFinancial AccountingAccount PayablesDocument EntryInvoice




Field Description Valid values Example RemarksVendor Vendor code in SAPInvoice date Date of invoicePosting date Date which is used when entering



Amount Vendor lien item amountBus.place/Sect Business place BANG This field has to be

always entered to facilitate TDS calculation

Text Common narration for all the line items can be entered here

G/L acct Expense GL account code number

370000

Short text GL code description Will default from G/L acct selection

Text Narration for this line itemBu Business areaCost center STBG-

COM



Select the withholding tax tab.

In the with holding tax tab the system will display the C1 tax code attached in the master record of the vendor. In case you do not want to create to deduct Tax then remove the C1 code here and the system will not create any tax entry.

Simulate the transaction to see the overview. Post the document.

The system will create the posted document number.



When the invoice is prepared by the Materials department the entry flowing into financial module will be as follows

Note that while GR/IR a/c has been debited the vendor account (100026) and I T payableCont a/c (230231) have been credited .

3.6.3 Clearing of Invoices Against Down Payments

In SAP in a case where an initial down payment has been made the system will deduct TDS on the amount. However, if the invoice for the order is received the system will post the full TDS & subsequently clear the TDS deducted earlier on the down payment assuming:

Tax withheld on the down payment and the invoice refer to the same section TDS on down payment has not been remitted to the tax office Same business place has been entered in both down payment and invoice

To clear the down payment and the TDS already withheld, the clearing function has to be performed:

To access the transaction from the SAP Easy Access screen, choose AccountingFinancial AccountingAccounts PayableDocument EntryDown paymentClearing





Date of payment



Type Document type KADocument Header text


Currency / rate


Document Number




Field Description Valid values Example RemarksPeriod Defaults from the

posting dateReference Other party’s

reference number can be entered here

Vendor Vendor code in SAPInvoice The FI invoice number against

which the down payment is to be cleared

Line item If the invoice has multiple items, then the corresponding items line number

Text Item Text

To select the relevant down payments select this icon

The system will display all the down payments pending against the vendor. Select the relevant one like in this case the down payment pertaining to this purchase order. Enter the amount of down payment you want to adjust in Transfer Posting column.



Simulate the document to see the overview. The system creates the adjustment TDS amount line item.



The above line item when double clicked will show the system generated text also. Save the document. The system will create a posted document number.

The above document display is given below.

3.6.4 TDS in case of outgoing payment against an existing invoice.

This case pertains to invoice prepared with TDS deducted and adjusted against advances if any. This invoice is pending for payment now.

To access the transaction from the SAP Easy Access screen, choose Account Payable Document EntryOutgoing payment Post





Date of payment





Currency / rate


Document Number






Field Description Valid values Example RemarksAccount GL bank account numberAmount Bank line item amountText Item TextValue date Date of the cheque

can be entered hereOpen Item selection

Selection details for payments

Account Vendor code in SAPAccount type K for vendorsStandard OIs Normal open itemsSpecial G/L ind


A for advances



Select Process open items button to select the pending invoices.



Select the respective invoice by double clicking the line. The selected line items colour changes to blue. The system automatically selects all the linked documents. Here the other line item selected is shown below.

The amount entered and amount assigned are not the same. The difference is shown in not assigned

column. To change the payment amount press the over view icon, double click on the lien item and then change the amount



to go back to the selection screen press screen.

Notice that the not assigned field is zero now. The system will allow to post entry now. Simulate the document and then post the transaction. The system will create the posted document number

The posted document overview is given below.



Note that no TDS has been deducted by the system

3.6.5 Extended Withholding Tax-Adjust Post Vendor JV (transaction J1INJV)

If, after you have posted and cleared a vendor invoice and you have discovered that you have posted the wrong amount of tax or that you have posted the tax using the wrong official tax key, you have to adjust the posting. The options are given below.

Access the transaction via transaction code J1INJV or menu path SAP Easy Access screen-- Tax Deduction at Source Extended Withholding Tax Challan Reverse




Field Description Valid values Example RemarksDocument number

The TDS document number

Fiscal Year Financial year of the documentJV Reason WEPosting date Date which is used when entering


The original Document was as under

The results of changes is tabulated as under

Type of change Debit Credit

Tax refund (tax already remitted) Loss account Vendor account

Tax refund (tax not yet remitted) Tax payable account Vendor account

Tax increase Vendor account Tax payable

In the below given case an amount correction has to be made .As the above screen shows the TDS not having been remitted, it can be changed. On correction of the above amount of TDS the result is as under



Change the TDS amount to Rs 900



Press Simulate and post the transaction. The document generated is as under.

Note the system-generated text ‘Tax Adjustment Entry’

3.6.6 Creation of Remittance challan

You use these programs to clear the tax line items of your vendors that are ready to be remitted.

To access the transaction from the SAP Easy Access screen, choose Tax Deduction at Source Extended Withholding Tax Vendor Challan or Customer Challan Post.




Field Description Valid values Example RemarksFinancial Year

Fiscal Year of the document

Business Place

BANG

Document numbers

Those documents for which you want to post challans

Posting date Posting dates of documents Section Official withholding tax key 194CVendor Vendor code in SAPRecipient Types

The type of recipient as defined in the vendor master record

Co - Companies

Document date

Date of the challan documents

Posting date Posting date of the challan documents

Bank account From which the challans are paid

The system will update the documents.



3.6.7 Reversal of TDS remittance Challan

If for any reason an error has occurred while creating a remittance challan, one can reverse the posting.

Access via SAP Easy Access screen, Tax Deduction at Source Extended Withholding Tax Challan Reverse.

Select the clearing document created when you posted the remittance challan. The system will reset and reverse the transaction.

3.6.8 Receipt of Bank Challans To post the challans sent to you by a bank in order to confirm that your withholding tax remitted has been received.

To access the report, from the SAP Easy Access screen, choose Tax Deduction at Source Extended Withholding Tax Vendor Challan or Customer Challan Update Bank Challan Number (J1INBANK)




Field Description Valid values

Example Remarks

Fiscal yearChallan clearing number

Document number of SAP’s challan clearing

Internal challan number

The numbers of the remittance challans generated when you remitted the withholding tax

Will default from challan clearing number

Internal challan date

Date of internal challan Will default from challan clearing number

Bank challan number

Reference number given by the bank

Bank challan date Date of Bank challanBank key Short key for a house bank

Execute the transaction.



The system enters the bank challan data in the remitted tax items. This information is then included in the vendor withholding tax certificates. The system displays a list of the updated items

3.6.9 To print Withholding Tax Certificates

In India, you must present your vendor or customer with a withholding tax certificate within 60 days of the business transaction, unless you have agreed that once annually is sufficient.

From the SAP Easy Access screen, access via Tax Deduction at Source Extended Withholding Tax Certificate Print (transaction J1incert)



Example Remarks

Fiscal year 2002Business Place

BANG

Section TDS Section number 194CPosting dates Posting dates range of TDS document numbers



Bank challan numbers

Bank challan numbers as created in SAP

Bank challan Dates

Bank challan dates for selections

Vendors Vendor code numbers in SAPCertificate Date

Date of the certificate

Signatory Authorised personDesignation Designation of the authorized personPlace of Printing

Where the TDS certificates are printed

In the case below the printout has been through print preview –In such a situation the system will not generate a certificate number. The printout command has to be accessed through the print command only



3.6.10 Withholding tax Information System

You use this report to gather information relating to the withholding tax transactions that you have carried out. You can also use it for carrying out pending transactions like challan updates, bank challan updates, and certificate printing. You can display the individual documents (invoices, down payments, challan clearing documents) pertaining to withholding tax transactions. You can run this report at any stage in the withholding tax cycle in order to obtain the necessary information.



To access the report, from the SAP Easy Access screen, choose Tax Deduction at Source Extended Withholding Tax Information System Withholding Tax (J1INMIS)



Example Remarks

Fiscal year 2002Posting date Date which is used when entering the document

in Financial AccountingDocument Number

With holding tax document numbers

Vendor Vendor code in SAPBusiness Place

BANG

Official with holding tax key

TDS Section number 194C




Example Remarks

Challan Update status

Displays a list of all documents involving withholding tax. For each document, it shows the tax amounts and whether or not the tax has been remitted

Bank challan status

Displays the bank challan update status (whether carried out or not) of all transactions for which challan updates have been carried out.

Certificate status

Displays the transaction details for which bank challans have been updated. It shows whether or not a certificate has been issued for the transaction.

Consolidated report

Lists all documents involving withholding tax.

The output of the report shows all TDS transactions that were due, ones on which TDS was deducted but not remitted to the bank, those on which TDS was deducted remitted but not printed out for certificates .At one stage it provides the option of tracking the TDS at various stages.



In the above case all the invoices did not have TDS deducted against them To take the case of a invoice where the TDS certificate was issued



Additionally in the Challan Update Status report, you can create a remittance challan for various documents: Select the documents that you want to remit the tax on and choose Challan Update. The system takes you to the Creation of Remittance Challans program, which you then execute. However, you can only process documents for one withholding tax section at a time.

In the Bank Challan Status report, you can post the receipt of a bank challan: Select the documents (in this case identified by the internal challan numbers) that you have been sent a bank challan for and choose Bank Challan Update. The system takes you to the Receipt of Bank Challans program, which you then execute. However, you can only a single internal challan at a time.

In the Certificate Status report, you can print withholding tax certificates: Select the documents that you want to print a certificate for and choose Certificate Printing. The system takes you to the Creation of Withholding Tax Certificates program. However, you can only process documents for one withholding tax section at a time.

3.6.11 Calculation of Withholding Tax on Clearing Accounts You use this report to calculate provisions – in other words, withholding tax on clearing accounts. India’s Income Tax Act requires you to withhold tax not just when you credit a vendor's account, but also when you post goods receipts – even if the vendor has not submitted an invoice. Any down payments that you have made can be deducted accordingly.

To access the transaction, from the SAP Easy Access screen, choose Tax Deduction at Source Extended Withholding Tax Provision Post.





Example

Remarks

Account GR/IR Clearing account number 230006Vendor Vendor code in SAPPurchase Order PO number created in Materials modulePurch. Organization

Organizational unit within Logistics, subdividing an enterprise according to the requirements of Purchasing. A purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and bears responsibility for such transactions.

Date Date upto which to be selectedPosting date Posting date or the documents being postedPosting period Defaults from the

posting dateExchange Rate types

M

Execute the transaction. The system displays a list of all the Goods Receipts for whom the invoices have not been received.



Select the required documents for which you want to post the provisions. You can click on a line and see the purchase order as seen below.

For the selected lines enter the with holding tax type, with holding tax code and the business place BANG.



When you save the system gives the information as shown below for each purchase order you have selected. Press enter for each such message.



For the selected document, the system will post the provision document.

Click on the above line and the system will display the overview of the posted document.

The system debits the TDS provision account (143030) and credits the TDS account (230261).

3.6.12 Clearing of Withholding Tax on Clearing Accounts When, after you have adjusted a purchase order 3.6.11 and the vendor sends you an invoice for it, you have to clear the tax that you have already calculated. This transaction is used for these purposes.

Overview of materials invoice created in SAP is given below.



To reverse the provisions done earlier as we have created the above normal invoice proceed as follows. Select the transaction.


Field Description Valid values Example RemarksRun program in test mode

This is for the purpose of seeing the documents only

Fiscal Year 2002Posting date The posting date of the provision

documents



The system displays all such invoices meeting the criteria. Remove the test run mode tick and execute. The system will display the list of provisions reversed.

Click on Ref. Doc. And the system will display the posted transaction.

3.7 Cenvat

Legislation requires you to remit excise duty twice monthly: for all the goods issues in the first half of any given month (1–15 inclusive) and from 16 to month-end. In each case, you are allowed five days to remit the excise duty.

3.7.1 Remittance of Excise Duty Fortnightly

You use this report to calculate how much excise duty you must remit to the authorities. Once the report has determined how much you have to pay, it allows you to specify where the money should be paid from – whether it should be deducted from the CENVAT credits that you have accumulated, or whether it should be deducted from the personal ledger account (PLA).



Irrespective of which date you execute the report on, you can only utilize CENVAT credits posted up until the 15th or the last day of the month as the case may be.

To access the report, from the SAP Easy Access screen, choose Indirect Taxes Sales/Outbound Movements Fortnightly Payment.


Field Description Valid values Example RemarksPlant 2000Excise group 01Period The fortnight period for invoices

selection.Excise invoices

Alternatively you can specify the excise invoices you want to select

Simulate Test mode

Press on this icon to know when the cenvat was utilized last.



Press this icon to see all the pending excises payable till date. Please note that the selection dates will not apply for this icon and it will display all the invoices till date.



Execute the transaction.

The system will display the balances in RG23A, RG23C & PLA registers and also excise payable account. Please note that the account balances will be 1 rupee more than the register balances the system displays. This is due t the fact that Rs.1 has been set as minimum balances for the registers.



Remove the simulation tick and execute the transaction. The system will make the utilization fields ready for input. Correct the system proposed amounts that you want to adjust from each register balance.



The system will not allow you to proceed till you match the debits and credits. Press on the excise invoices icon and the system will display those excise invoices which constitute the excise payable balance.



Press icon to see whether any errors are there.

When the system gives the above message you can save the transaction. The system will generate the posted documents.

A sample document overview is given below.



In the above case excise duty was utilized from RG23A, RG23C & PLA registers.

Please note that this process has to be done fortnightly with in 5 days of the fortnight. Other wise there are chances of results not being consistent.

Also note that the above document should not be reversed through the normal accounting document reversal.

3.7.2 Making Adjustment Postings for Money Transferred to PLA

You follow this procedure to make an adjustment posting when you transfer money to your personal ledger account (PLA).You have already transferred the money to your PLA at the bank, using a TR6 challan, and have posted the corresponding accounting document.

From the SAP Easy Access screen, choose Indirect Taxes Excise JV Create TR6 challan.

Press icon to make the entry.





You can enter either the challan number or the number of the accounting document.


Document year Fiscal yearPlant 2000Excise group 01 Other party’s

reference number can be entered here



Enter the amount in amount fields. If you want to see the current balance press balances icon. The system will display the current balance in PLA as shown below.

Post the transaction and the system displays the following document created message.

The document overview will be as below.

The above balance will be reflected in Fortnight utilization screen under PLA.



3.7.3 Making Adjustment Postings for Additional Excise Paid by Vendors

You follow this procedure if a vendor has increased the amount of excise duty that it originally charged you and you want to debit the difference to your CENVAT account.

From the SAP Easy Access screen, choose Indirect Taxes Excise JV Create Additional excise.

Select icon



Make the entries using the following reference table


Enter the number of the document sent to you by the vendor.

Document year Fiscal yearPlant 2000Excise group 01Modvat account selection

RG23A



Enter the BED amount and press

Press enter and save the document. The system will create the posted document number.



The document overview will be as follows.

If you want to post to RG23c then select the initial screen RG23C as modvat account selection



Enter the values using the following reference table


Enter the number of the document sent to you by the vendor.


RG23C

Press enter

Enter the BED amount and press determine G/L accounts icon.



The system displays the accounts that will be posted to. Then save the document. The system will create the posted document.

The display of the above document is given below.



3.7.4 Other adjustment postings

You follow this procedure if you want to make an adjustment posting that does not fall into any of the other categories of adjustment offered by this function. You can only use an external document as your reference document.

From the SAP Easy Access screen, choose Indirect Taxes Excise JV Create other adj.

Select icon.



Enter the values using the following reference table


Enter the number of the external document that you want to refer to.


RG23C

Press enter

Enter the BED amount and press determine G/L accounts icon.



The system displays the accounts being affected. Save the transaction. The system displays the documents generated.

The overview of the posted document in accounting is given below.



If the adjustment postings is for RG23C then select the same in the initial selection screen of the above transaction.



Enter the Bed amount and press determine G/L accounts icon.



Post the transaction. The system displays the documents generated.

The document overview is given below.

If the adjustment posting is for PLA then select in the initial screen under modvat account selection as PLA.



Enter the Bed amount and press determine G/L accounts icon.

Post the transaction. The system displays the documents generated.



The document overview is given below.

3.7.5 Excise registers

The SAP System handles the following excise registers:

Register RG 23 (A and C), Part I

In Part I of register RG 23A, you record purchases of materials that you have paid excise duty on. Each entry shows the quantity of the materials purchased and the numbers of the excise invoices sent with the materials.

The system automatically makes an entry in this register when you post goods receipts.

Register RG 23 (A and C), Part II

Part II of these registers shows how much excise duty you have credited and debited to your CENVAT accounts. The system automatically creates an entry here when you post the CENVAT on an excise invoice.

Register RG 23A, which was reserved for raw materials, and register RG 23C, which was for capital goods, was combined into one register in 2000. The system still distinguishes between the two, however, to allow for the possibility of the old system returning.

Personal Ledger Account (PLA)

This is the bank account from which you transfer any money owing to the excise authorities.

Register RG 23D

This is a register that is kept by depots (see Sales from Depots). It shows all of the depot's goods receipts; the details of the incoming excise invoices; and the goods issues from the depot.



Register RG 1

This register shows the production information relating to all finished goods on which excise is paid. It shows all the issues of finished goods from a factory into a store for excisable finished goods and any sales of these goods.

Register RT-12

This is a monthly report that summarizes the CENVAT and PLA information from the other registers.

SAP provides a 2 step approach for excise registers printing. First we need to extract the reports for the given period and then we can take a print of the same.

To access the report, from the SAP Easy Access screen, choose Indirect Tax Registers Excise Tax Extract.

Give the excise group and date selection for which you want to print the registers. Also select the registers for which you want to do this updation. Otherwise select registers specifically or select all registers.



You can also view when the last extraction was done. Press the last extracted dates icon. The system will display the following information.

To print the registers go to SAP Easy Access screen, choose Indirect Tax Registers Excise Tax Print Utility Program.

In the selection screen give the register for which you want to print and execute. The system will create the spool request for print.



3.7.6 RT 12 Reports

This is a monthly report that summarizes the CENVAT and PLA information from the other registers. The report has to be executed each option wise for details.

In the selection screen give the period selection and the excise group. The fortnight reports have be taken for each fortnight wise. All other reports are monthly.

Display headings report is given below.



Fortnight – Removals & duty is displayed below.



Scrolled to the right.



Scrolled down.



Monthly report for excisable goods manufactured during the month is given below.



Scrolled to wards right direction.



Monthly report of goods cleared without payment of duty.



Scrolled towards right direction.

Report of total duties paid for the month is given below.



3.7.7 Proforma for monthly return

The central excise authorities have by vide notification no: 2000-(N.T) dated 28th April, 2000, prescribed the form of monthly return under rule 57AE of the central Excise Rules, 1944.

The SAP System offers you a report with which you can prepare the necessary printouts. It covers both of the following:

Annexure

This is a list of all the invoices and bills of entry for which you have made a Part II credit posting over the past month. For each document, it shows the information required by the authorities.

Abstract

This is a summary of the excise information from the annexure.

To access the report, from the SAP Easy Access screen, choose Indirect Taxes Registers Excise Tax CENVAT Register.

Select the excise group and the periods for which you want to take the report.The annexure report for inputs will be as displayed.




The annexure report for capital items will be as displayed.






The abstract for both input and capital goods will be shown as displayed below.


3.7.8 Transfer of CENVAT Credit on Capital Goods

You use this report to display a list of the vendor excise invoices where the vendor has levied excise duty but you have not posted it (in full) to your CENVAT account.This is particularly useful in the case of capital goods, in order to find out how much credit remains from previous years.



To access the report, from the SAP Easy Access screen, choose Indirect Taxes Procurement Excise Invoice Reports Balance Credit for Capital Goods.

On the selection screen, enter:

Organizational data

Data of the documents that you want

The system displays a list of excise invoices with excise duty outstanding. It shows you:

The total amounts of the various types of excise duties levied on the excise invoice

How much duty has still to be posted to the CENVAT account

Select the excise invoices that you want and choose Transfer credit. If you want to transfer only a portion of the remaining amount, enter this amount as the amount to be credited.

The system creates an accounting document to post the duty to the CENVAT account and creates an entry in the Part II register.

3.8 Closing

The following closing operations have to be performed in AP module for year end closing.

3.8.1 Valuating open items

Access transaction via - AccountingFinancial AccountingAccounts Payable Periodic Processing Closing Valuate Open items in foreign currency

Please refer to 1.8.3.1 for further information.

3.8.2 Carrying forward balances

Access transaction via - AccountingFinancial Accounting Accounts Payable Periodic Processing Closing Carry forward Balance carry forward




Field Description Valid values Example Remarks

Carry forward to fiscal year

The next fiscal year

Select vendors Vendors can be individually selected or a range. If no selection is given then the system will select all customers.

Test Run Will simulate the resultsDetail log Will give a detailed summary

Execute the test run first & then remove the tick in Test run. The system will carry forward the balances to the next financial year as given in selection.


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