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SAP AG 2005

Contents:

Exports

Overview of Export Processes

Export Bonding

ARE Document Processing

Screen Shots

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SAP AG 2005

After completing this unit, you will be able to:

Understand the export processesConfigure the export related requirements

Update Master Data relevant for exports in SAP

Perform export transactions and execute relevantreports

Exports: Unit Objectives

The Excise Bonding module in SAP R/3 has been developed as a solution for the Indian Export System.

The scope of this system covers capturing of data not covered by the standard R/3 system and includes

Various Licenses/Bonds & License Utilization

Movement of Goods under Bond Details of Payments.

The procedures are mainly governed by the statutory requirements, which is common to any Industry in India.

There are different processes like License Capture, License Utilization and Creation of AR 3A, AR 4 in Sales andPurchasing cycles.

Though the Excise Bonding system is tightly coupled with the standard R/3 system, no updating of data occurs from theimport system into the standard R/3 system. But various processes refer to standard R/3 data like Sales Order ,Billing Document , Excise Invoice

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SAP AG 11 - 3WINLEN

SAP AG 2005

Export: Business Scenario

Export Sales and Deemed Export Sales

Exports under Bond

Manufacturer

Merchant Exporter

Exports under Rebate

Exports under Deemed Export, STP & 100% EOU

Special Procedures

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SAP AG 2005

Salient Features

Export of Excisable Materials can be done by:

Manufacturer

Merchant Exporter Removal of goods from a manufaturer / merchant-exporterwithout payment of duty to destination within India

Exports categorized (legally) as:

Under Bond

B-1 Bond

Running Bond Account (Bond Register)

Letter of Undertaking (UT-1)

Under Rebate


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SAP AG 2005


Process customer inquiries

Procure License

Prepare Sales order & Proforma Invoice

Receipt of Customer LC

Verify delivery dates andavailability

InventorySourcing

Delivery order

Customs EndorsementPre-Shipment

Billing Prepare Commercial

Invoice

Payment Post Payment/ Bank Negotiations

Pre-Sales

Activities

Sales Order

Processing

Shipment Process Clearing and Forwarding

Export Order Processing

Create / Change Sales Order to amend TOP / Inco-Terms / Freight ChargesGenerate ProForma [ F8 ] w r t Sample Sales Order ; for opening customers L/C

Updation of L/C Master ( w r t Customers L/C )

License Application ( for OBA countries ) , w r t License Planning for Sales Order on hand

Purchase of Licenses & Updation of License Master ; w.r.t. Licensed Entitled Sales Order

Generate Customs Invoice [Type = F8 ] w r t Sales Order , for Customs endorsement

Generate Customs Packing List , w.r.t Sales Order ; for Customs File & Clearance

Generate Commercial Invoice [ Type=F8 ] w r t Sales Order , for Customs File & clearance

Create / Change Delivery w.r.t sales order [ after Production Order Confirmation / GR against PO ]

Picking / Packing /Generate Packing List [ Customer Packing List ]/PGI

Generate Commercial Invoice [ Type=F2 ] w r t Sales Order for Customer and change if necessary for amending Freight Rates

Print Commercial Invoice , for Customer

Create ARE1 / Excise Invoice w r t Commercial Invoice - Running Bond [ Pen & Pencil credit ] /Against LUT / Bank Guarantee

Create Annexure [ for OBA / Non-OBA countries ] , Create G S P [ w r t Customs Endorsed Invoice]

Create Form S D F [ w r t Customs Endorsed Invoice ], Create VISA / Certificate of Origin [ w r t Customs Endorsed Invoice ]

Handing Over Goods & Documents to C&F Clearing

Receipt of FCR ( Forward Cargo Receipt ) from C&F Agent ; Booking of Sales Release Commercial Invoice to Accounting

Receipt of # A W B ( Air Way Bill ) , from C&F Agent # B O L ( Bill of Lading ) , from C&F Agent

# EP & EC copy of Custom Endorsed Invoice , from C&F Agent

Update License Register w r t Customs endorsed License Certificate & Post Shipment negotiation with Bank [LC+ IC+ BOE]

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Excise Bonding Document Flow

Delivery

Sold-to-party : 2300

Item Material Qty10 400 5

Does Bond

exist?

Order



Billing



Excise Invoice



Bond Register



Capture License



Create AR Doc



The reference document for Creation of ARE Document is the Excise Invoice. All the details captured in Sales Order, Delivery, Billing and exciseInvoice is defaulted in the document.

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SAP AG 2005

Documents specific to Export Processing

PRE-SHIPMENT ACTIVITIES

Proforma Invoice

Export License/Country of Origin

Customs Invoice

SDF form/ or GR

Packing List

ARE1 & ARE3 Tracking for Running Bonds

Shipping Instruction

Commercial Invoice with actual supply PGI

POST-SHIPMENT NEGOTIATIONS

Form-A/GSP certificate of origin

Inspection Certificate

LC Cover

BRC

Commercial Invoice

Bill of Exchange

Forward Cover

DBK Recovery

LICENSE APPLICATION

Annexure IV

Annexure II

Annexure III

Annexure IIIA

LEGAL REPORTING REQUIREMENTS

Tracking of Bank Guarantee & other EMD

GSP

Export Register

License Application, Allocation,

Utilisation and Endorsement Registers

Proof of Exports

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SAP AG 2005

Exports Sales

Export Sale

Sales Order

currency

Customer Country

Delivery

ProformaExcise

Reference

CENVAT / Part IIRegister

ED Credit

Sales under no-bond?

Yes

NoSales Under

Bond

BondRegister

Download

CommercialInvoice

Excise Value

Optional Tax Calculation

Excise Calculation

Formula

Export Sales

Identified by Customer country and currency of order

Exchange rate for foreign currency will be as on date of transaction

Separate excise indicator to be maintained for export customers

Proforma Excise Reference made against Delivery

Optional Tax calculation based on excise calculation formula

CENVAT utilization done for sales under no-bond

Sales under bond identified for download of bond-register

Commercial invoice picks excise value from Proforma Excise Reference

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Deemed Exports Sales

Sale is marked as Deemed

Excise status of customer gives complete concession

J1IIN transaction creates excise invoice

No Amount utilization

Use of Local excise invoice range based on series group

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SAP AG 2005

Process Flow for exports under Bond , for Manufacturer

Manufacturer(Exporter)

Port (Customs)

Excise Dept for

manufacturer

B1 Bond

ARE1

III, IV

ARE1

III

ARE1

ExciseInvoice

I to V ARE1

I, V

II (Sealed)

I, II, V

ARE1

ExciseInvoice

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Process Flow for exports under Bond , for Merchant Exporter

Merchant Exporter

Port (Customs)

Excise Dept for

manufacturer

Bond

CT 1

CT 1

ARE1

I, V

II (Sealed)

I, II, V

ARE1

ExciseInvoice

Manufacturer

CT 1

CT 1

ExciseInvoice

ARE1

III, IV

ARE1

III

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Bond Maintenance in SAP R/3

Bond Type

B1 , LUT , BG

Bond Numbering

Bond Balance [ Debit / Credit entries ]Fast Credit

Reservations

Processing Excise Bonds

Create , Change , Display , Cancel & Close Excise Bonds

Assigning Excise Bonds to ARE-1

Proforma for Running Bond Account

Bond Statements

Statements regarding export of excisable goods

Bond Summary Report

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ARE-1 Form Processing

Creating ARE-1

Changing / Amend ARE-1

ARE-1 TrackingARE-1 Update

ARE-1 Shortfall Adjustments

ARE-1 Reversal / Cancellation

Posting ARE-1 to Excise Dept.

Closing ARE-1

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ARE-3 Form Processing

Creating ARE-3

Changing / Amend ARE-3

Assigning Deemed Export Licenses to ARE-3 Line Items

Posting ARE-3 to Excise Dept

ARE-3 Update

ARE-3 Shortfall Adjustments

ARE-3 Reversal / Cancellation

Closing ARE-3

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Creating Transaction Configuration

ARE Document numbering

Automatic Address Determination

ARE Text determination

ARE Output / Printout

Extending Export Periods and Reware housing periods

Interest Calculation

ARE assignment / removal from Excise Invoices

ARE cancellations

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Header Data

Document Details

Total DutiesCertification Dates

Bond/UT -1 Detail

Excise Invoice Summary

Addresses

Additional Data

Part II

Item Data

Item Material Details

QuantityDuty Rates

Duty Values

License

Package Details

Reference Documents

Additional Data

Header Notes

Basic header data, such as the internal and official ARE numbers and the document status. Total amounts of basic excise duty in the AREdocument and any changes made by customs (ARE-1s) or the customer (ARE-3s)

Various dates used to track the progress of the ARE document. In exports under bond, shows which bond the export is covered by. This tabonly shown for exports under bond. Shows the addresses of the local excise department and the customs office that is handling th

ARE document.

Fields for any additional information that you might want to enter, including various long texts to be printed on the ARE document.

Any entries in Part II of the excise registers RG 23A, RG 23C, or PLA made as a result of your updating the quantities in the ARE document.Nthat this tab is not displayed if there are no Part II entries

Item Notes

Item , Basic information about the material itself.Quantities , Information the quantity of goods in the excise invoice, and how much of this quantity have entries in Parts I and II of the exciseregisters.

Duty Rates , The rates of excise duty on the item.

Duty Values , The excise duty on the item, and how much of it has already been credited to the CENVAT accounts.

License , The license that this item is covered by (deemed exports only).

Package Details , Any information about the packages that needs to be printed on the ARE document.

Reference Documents , The other SAP documents associated with the item.

Additional Data , Fields for any additional information that you might want to enter, this time at item level.

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SAP AG 2005

ARE Transaction Configuration

Each type of ARE Document provides for:

One Central Processing Transaction

Allows Users to carry out all functions on ARE documentSuitable to a System Administrator

Three Individual Processing Transactions

Restricts Users to specific processing modes only E.g

Create and Display ARE documents OR

Update and Display ARE documents etc

Assignment to Excise Clerks/Supervisors

Customizing Settings:

IMG Path: Logistics General Tax on Goods Movements India Business Transactions Exports Under Excise Regulations TransactionConfiguration


nsaction Codes , Role based link with Auth Profiles

J1IA101 - Create, change, update, cancel, display ARE-1J1IA102 - Create, change, display ARE-1

J1IA103 - Update, display ARE-1

J1IA104 - Cancel, display ARE-1

J1IA301 - Create, change, update, cancel, display ARE-3

J1IA302 - Create, change, display ARE-3

J1IA303 - Update, display ARE-3

J1IA304 - Cancel, display ARE-3

J1IBN01 - Create bond ; J1IBN02 - Change bond

J1IBN03 - Display bond ; J1IBN04 - Cancel bond

J1IBN05 - Close bond ; J1ILIC01 - Create license

J1ILIC02 - Change license ; J1ILIC03 - Display license

J1ILIC04 - Cancel license

J1ILIC05 - Close license

J1IANX18- Pro Forma of Running Bond Account

J1IANX19- Statement Regarding Export of Excisable Goods

J1IARE_AGE - Aging Analysis for ARE Documents

J1IBONSUM - Bond Summary Report; J1ILICSUM - License Summary Report

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ARE Document numbering

Each ARE Document has two numbers

an internal number

Used by the system to identify the ARE document,

an official number

Corresponds to the serial numbers assigned to company by the excisedepartment for the ARE document forms

Number Range Objects to be maintained

Internal number range object

J_1IINTNUM

Official number range object

ARE-1s J_1IARE1

ARE-3s J_1IARE3

Separate number range for each series group

Customizing

IMG Path : Logistics General Tax on Goods Movements India Tools Number Ranges .

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ARE Automatic Address Determination


Address of Custom Department

(Master Data Config- Postal Addr)

Address of Excise Department

(Master Data Config Series Grp)

Address in

ARE

Customizing Settings

Define name and address of Excise department and Customs dept.

IMG Path: Logistics General Tax on Goods Movements India Master Data Maintain Postal Addresses .

Define a default local excise department address for each series group

IMG Path: Logistics General Tax on Goods Movements India Master Data Maintain SeriesGroups.

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SAP AG 2005

ARE Automatic Text determination


# Mode of

Transport

# Export Seal

No

Long Text Function

Customizing

ARE -1 / ARE-3 Forms

The forms that ARE-1s and ARE-3s are printed on contain spaces for various pieces of information, forexample, the mode of transport or the export seal number.

Long Text function facilitates entry of such information during creation of ARE document and the same canbe printed at the appropriate positions.

Country Version India comes with long texts already customized to go with the ARE-1 and ARE-3 forms

Customizing Settings for defining other long texts:

IMG Path: Logistics General Tax on Goods Movements India Tools Long Texts

In ARE Document Processing,

Additional Data tab Long Text .In the dialog box, double-click the sort of long text that you want to enter, and type the text in thefield next to it.The texts appear at the appropriate positions when the document is printed

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ARE Output determination / Printout


SAPScript forms for

ARE -1

ARE-3

Common print program and output typeJ1IB

Other Output Types : Customizing Settings:

Definition:

IMG Path: Logistics General Tax on Good Movements India BusinessTransactions Excise Bonding Exports under Excise Regulations Printouts of

ARE Documents.

Assignment:

IMG Path: Logistics General Tax on Good Movements India BusinessTransactions Excise Bonding Exports under Excise Regulations MakeSettings for ARE-1 Procedure &

IMG Path: Logistics General Tax on Good Movements India BusinessTransactions Excise Bonding Deemed Exports Make Settings for ARE-3Procedure

We can also specify how many copies of each ARE document you want the system to print.

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Extending Export Periods and Rewarehousing periods for ARE


Exemption on basic excise duty dependant on completion of:

Exports under bond within export period

Exports under claim for rebate within export periodDeemed exports within allotted re-warehousing period

On application of extension,

If extension granted

Enter extension date in ARE document

Else

Reverse ARE-1 or ARE-3 to facilitate repayment of excise duty postedto CENVAT

Ageing Analysis for ARE document used to track AREs nearingend of export/rewarehousing period

Customizing Settings

Export Period

IMG Path: Logistics General Tax on Goods Movements India BusinessTransactions Exports Under Excise Regulations Exports.

Rewarehousing period

IMG Path: Logistics General Tax on Goods Movements India BusinessTransactions Exports Under Excise Regulations Deemed Exports

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ARE Interest Calculation

Reversal of

ARE -1/ARE 3documentShortfalls in ARE-1s/

ARE-3s

Interest due computed

by system

OVERWRITE OF EXCISE DUTY

AND INTEREST COMPUTED BY

SYSTEM PERMITTED

Customizing Settings :Maintain the interest rates

Exports:

IMG Path: Logistics General Tax on Goods Movements India Business Transactions Exports Under Excise Regulations Exports Make Settings for ARE-1 Procedure

Deemed Exports:

IMG Path: Logistics General Tax on Goods Movements India BusinessTransactions Deemed Exports Make Settings for ARE-3 Procedure .

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ADD/REMOVE/CANCEL EXCISE INVOICE TO AREs (STEPS..)

ADD

On the Excise Invoice Summary tab enter in Additional Excise Invoice field,

Excise Invoice Number

Year

Choose +

REMOVE

On the Excise Invoice Summary tab enter in Additional Excise Invoice field,

Excise Invoice Number

Year

Choose

CANCEL

Indirect Taxes Sales/Outbound Movements Exports Under Excise Regulations Exports or Deemed Exports Central Processing Cancel ARE1 or Cancel ARE-3.

Select Cancel

Select ARE-1 or ARE-3 Internal Document

Provide internal ARE number and choose SAVE

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SAP AG 2005


ARE Aging Analysis Report

List of all ARE documents by their status

ARE Document Status

Activity is overdue

Activity is due today

Activity has been completed

SAP Easy Access Path: Indirect Taxes Sales/Outbound Movements Exports Under ExciseRegulations Reports Aging Analysis for ARE Document

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Exports : Unit Summary

Now you will be able to:

Understand the export processes

Configure the export related requirements

Update Master Data relevant for exports in SAP

Perform export transactions and execute relevantreports

Acin Ecc5 Sd 0008

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