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Factory Sales activities wrt Excise are mainly for Export and Deemed Export apart from the normal sales.

Export Cycle



Export Cycle starts with execution of Letter of Undertaking or BOND. Bond is executed with some amount which is accounted in system. The Export form which is called as ARE1 is created at the time of Export Sales against Excise Invoice and sent along with the consignment. Value is debited as soon as the export sales happens wrt that particular Bond and the same is accounted in Bond Register.
ARE1 with Export documents are received back after duly signed by Customs authorities after actual export from the port for onward submission to Excise dept. which has to be received within 180 Days from the date of preparation. The activity is called as Proof Of Export (POE). You will be exporting the goods without payment of excise duty. Bond amount is credited as soon as the POE is received and accounted in system.
If the POE is not received within 180days, supplying plant should debit the excise duty.
In some of the companies, export happens on Letter of Undertaking, which does not have a value and you will be exporting the goods without payment of excise duty.

You have a option to export the goods on payment of excise duty, which is called as export under Claim of Rebate, in which at the time of Clearance, you will be paying the duty and you will get the refund after submitting the POE to Excise Dept.

 ARE1 Creation, Posting and Print.

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                        Procedure

Easy Access Path

SAP Easy Access India Localization Menu (J1ILN)> Indirect Taxes > Sales/Outbound Movements > Exports Under Excise Regulations > Exports > Central Processing

Transaction Code

J1IA101

 

On the initial screen, select "A11 Create ARE-1" and " R09 Outgoing Excise Invoice", enter Excise Invoice No. and press Enter.
 If you have selected Bond or LOU at the time of Excise Invoice creation, at Header data, click on Bond/UT-1 Detail  tab, enter Int. Bond/ LOU No. and Year ( Click  button to see the Bond utilization status), click on Certification Dates tab, enter "Dispatched On" date and "Removal Time"
Click on Document Detailstab and Tick Print ARE Document Check Box
. Select Local excise as well as Customs dept address from Drop down list in Addressestab. In  Additional Data tab, Click on Long text  to enter the other details of export such as, "Mode of Transport", "Export Obligation", "Excise Seal Number", "Container Number"  or any "Remark".
 At Detail data Click on Package Detailstab, enter Package Details if needed. You can enter any additional data at Header as well as Detail level in Additional Data  tab. Click on Check  button and Click on Post Document button.
If you have selected "No Bond" at the time of Excise Invoice creation, then "Bond/UT-1 Detail" tab will not appear.
 If You do not want to Post ARE1 at the time of creation, Click on SAVEbutton. You can subsequently "Post" ARE1 by selecting "A04 Post ARE-1" and " R10 ARE1 Internal Document Number".
  
System will ask for the Output Device, enter Output Device, Enter Number of Copies, Tick in Print immediately box and click on Print Button. To see the print preview, click on Print Preview Button.
Result
Goods Receipt is account and Material document is generated. ARE1 is printed. 

  

 ARE1 Change or Display

This activity is performed to Change or Display ARE1.
Prerequisite
ARE1 No is not POSTED.
Procedure
Access the transaction choosing one of the following navigation options:

Easy Access Path

SAP Easy Access India Localization Menu (J1ILN)> Indirect Taxes > Sales/Outbound Movements > Exports Under Excise Regulations > Exports > Central Processing

Transaction Code

J1IA101

 

 On the initial screen, select "A02 Change ARE-1" and "R10 ARE1 Internal Document", enter Internal Document No. and press Enter.
At Header data, you can change Bond No. in Bond/UT-1 detail  tab, you can add Excise Invoice in Excise invoice summary  tab,  Additional Excise Invoices by clicking addbutton. click on Certification Dates tab, to change date of "Created On" you can enter "Dispatched On" date and "Removal Time". You can change Local excise as well as Customs dept address from Drop down list in Addresses  tab. At Detail data Click on Package Details tab, to change Package Details if needed. You can change any additional data at Header as well as Detail level in Additional Data  tab.
At Header level , in Additional Data  tab, Click on  Long Text  to change the other details of export such as, "Mode of Transport", "Export Obligation", "Excise Seal Number", "Container Number"  or any "Remark".
Click on Check  button and Click on Save  button.
To Display ARE1, on the initial screen, select "A03 Displaye ARE-1" and "R10 ARE1 Internal Document", enter Internal Document No. and press Enter.
Result
ARE1 is changed.
ARE1 is displayed. 

ARE1 Cancel

Procedure
Access the transaction choosing one of the following navigation options:

Easy Access Path

SAP Easy Access India Localization Menu (J1ILN)> Indirect Taxes > Sales/Outbound Movements > Exports Under Excise Regulations > Exports > Central Processing

Transaction Code

J1IA101

 

 On the initial screen, select "A05 Cancel ARE-1" and "R10 ARE1 Internal Document", enter Internal Document No. and press Enter.
On Next screen Click on Save  button.
Result
ARE1 is cancelled 

ARE1 Updation.

Procedure
Access the transaction choosing one of the following navigation options:

Easy Access Path

SAP Easy Access India Localization Menu (J1ILN) > Indirect Taxes > Sales/Outbound Movements > Exports Under Excise Regulations > Exports > Central Processing

Transaction Code

J1IA101

.

 On the initial screen, select "A06 Update" and " R10 ARE1 Internal Document", enter ARE1 Internal Document and press Enter.
At Header data, click on Certification Dates  tab, enter details of Proof of Export in respective fields "Arrived at Customs" "Countersigned by Customs", " Arrived Back - In case of Return export", "Sent to Excise Dept", "Export Confirmed". Click on Check  button and Click on Savebutton. System will display a message of "Status", click on "Yes" button to continue.
Result
ARE1 Proof of Export details are updated 

  

  

 ARE1 Reversal

Procedure
Access the transaction choosing one of the following navigation options:

Easy Access Path

SAP Easy Access India Localization Menu (J1ILN) > Indirect Taxes > Sales/Outbound Movements > Exports Under Excise Regulations > Exports > Central Processing

Transaction Code

J1IA101

.


On the initial screen, select "A07 Reverse" and "R10 ARE1 Internal Document", enter Internal Document No. and press Enter.
At Header data, Click on Document Detailstab and enter "Reason Code", Click on Check  button and Click on Save  button.
Result
ARE1 is Reversed

Regards

Prashanth Goud