Setup Requirements for Offsetting Cenvat Credit Against Service Tax

This table lists the setup requirements for offsetting cenvat credit against service tax:

Setup Requirement	Comments
Set up the relationship between an operating unit and a business unit or cost center.	You use the Excise Unit Branch Plant Cross Reference program (P75I304) to create a relationship between an excise unit and a business unit.
Complete the O2C and P2P cycles for excise and service taxes.	See Setup Requirements for Excise Tax for P2P and O2C Cycles.
Update the debit amount with AR information and the credit amount with the AP information.	Run the Service Tax Reclassification AP program to review the service payments for a defined period and also determine whether the tax lines require classification. Run the Service Tax Reclassification AR program to review the receipts for a defined period and also determine whether the tax lines require classification.
Set up the credit distribution percentage.	You use the Credit Distribution Percentage program (P75I011) to set up credit distribution percentage.
Offset cenvat credit against excise tax	You use the Credit Distribution - Services program (P75I013) to offset Cenvat credit for excise and services.