This is for Country Version India, Financial Accounting Flow of Entries: I. Procurement of Stock.

What should be my accounting entry in procurement?

For Domestic Procurement of Raw Material During GR Material Stock GR/IR clearing During Excise Invoice Credit Cenvat Account Cenvat Clearing During Invoice Verification Cenvat Clearing GR/IR Clearing Vendor Payable For Domestic proceurement of Capital Goods During GR Material Stock GR/IR clearing During Excise Invoice Credit Cenvat Account Cenvat On-hold Cenvat Clearing During Invoice Verification Dr. Dr. (50%) (50%) Cr. Dr. Cr. Dr. Dr. Cr. Dr. Cr. Dr. Cr.

Cenvat Clearing GR/IR Clearing Vendor Payable Subsequent of Capital Goods Cenvat Account Cenvat On-hold

Dr. Dr. Cr

Dr.

(50%) Cr. (50%)

For Import Procurement of Raw Material During Customs Duty Clearing invoice Custom Clearing Custom Payable During GR Material Stock GR/IR clearing During Excise Invoice Credit Cenvat Account Custom Clearing During Invoice Verification GR/IR Clearing Vendor Payable Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.

For Excise Duty Credit of Raw Material without PO Cenvat Account Cenvat Clearing Dr. Cr.

For Excise Duty Reversal through Excise JV Cenvat Clearing Cenvat Account

Dr. Cr.

What should be my accounting entry when the goods are issued through MM and excise invoice is created (J1IS & J1IV)?

During Excise Invoice Creation Cenvat Suspense Account Cenvat payable For TR6C Challan PLA Account PLA on hold Account During Fortnightly Utilization Cenvat payable Cenvat Account PLA Account Dr. Cr. Cr. Dr. Cr. Dr. Cr.

Note: Cenvat Suspense Account should be cleared apprpiately using FI JV's.

What should be my accounting entry in subcontracting reversal / Recredit ? For Subcontracting Challan Reversal Cenvat Reversal Cenvat Account For Subcontracting Challan Recredit Cenvat Account Cenvat Reversal Dr. Cr. Dr. Cr.

What should be my accounting entry in SD ? For Factory Sale During Billing Document Customer Account Sales Account Cenvat Suspense Account During Excise Invoice Creation Cenvat Suspense Account Cenvat payable For TR6C Challan PLA Account PLA on hold Account During Fortnightly Utilization Cenvat payable Cenvat Account PLA Account Dr. Cr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cr.

For Stock Transfer through SD

No Accounting entries for Proforma Billing Document During Excise Invoice Creation Cenvat Suspense Account Cenvat payable Dr. Cr.

For TR6C Challan PLA Account PLA on hold Account During Fortnightly Utilization Cenvat payable Cenvat Account PLA Account Dr. Cr. Cr. Dr. Cr.

Note: Cenvat Suspense Account should be cleared apprpiately using FI JV's. II. Central Excise RG 1 - Production & Issues or Inputs form Production and Sales RG 23A Part I - Link Stock Register, only Product details and Quantity details. RG 23A Part II - Cenvat Credit on Incoming Materials & Duty Paybale on Outgoing Materials or on Sales (Monthly Register) Excise PLA Register - TR 6 Challans Form No. 5 Register - For Return Goods (Form D3 to be submitted to Excise Dept.,) In SAP the Movement you save the MIGO Transaction, it automatically generate FI Document. It will create the following entry. i). Inventory Raw Material A/c To GR/IR Clearing A/c Dr Cr

In MIGO Transaction itself, you can post Excise by choosing capture and post Excise Invoice. The FI Document will be as follows. ii). RG 23 A Basic Excise Duty A/c To Canvat Clearing A/c Cr Dr

After doing MIGO, you execute MIRO. In this transaction also SAP will generate FI document automatically. The Entry will be as follows:

iii). GR/IR Clearing A/c Cenvat Clearing A/c VAT Setoff A/c To Vendor A/c

Dr Dr Dr Cr

III. Flow of Entries for a Normal Manufacturing Activity: I. On Receipt of Raw Materials: (MIGO-movement type:101) Dr. Inventory of Raw Materials Dr. Inventory of Operating Supplies Dr. Inventory of Packing Materials Cr. GR/IR Clearing A/c II. On Invoice Verification: (MIRO) Dr. GR/IR Clearing A/c Cr. Vendor A/c 130 130 100 20 10 130

III. On Goods Issued for Production: (MIGO-movement type:261) Dr. Consumption of Raw Materials Dr. Consumption of Operating Supplies Cr. Inventory of Raw Materials Cr. Inventory of Operating Supplies 100 20 100 20

IV. On Semi-Finished Goods Received form Process: (MIGO-movement type:101) Dr. Inventory of Semi-Finished Goods 120

Cr. Cost of Goods Manufactured (Semi-Finished Goods)120 V. On Issued of Semi-Finished Goods for further Processing: (MIGO-movement type:261)

Dr. Consumption of Semi-Finished Goods Dr. Consumption of Packing Materials Cr. Inventory of Semi-Finished Goods Cr. Inventory of Packing Materials

120 10 120 10

VI. On Finished Goods Received from Process: (MIGO-movement type:101) Dr. Inventoyr of Finished Goods Cr. Cost of Goods Manufactured (Finished Goods) 130 130

VII. On Finished Goods Issued for Sales: (VL01N-movement type:601) Dr. Cost of Goods Sold (Finished Goods) Cr. Inventory of Finished Goods VIII. On Raising Bill for the Customer: (VF01) Dr. Customer A/c Cr. Sales A/c 145 145 130 130

Hi

Following are the entries as given below

During good Receipt: -

Stock A/c Dr GR/IR A/c Cr Freight clearing a/c Cr Other expenses Cr

During invoice verification :-

GR/IR A/C Dr Vendor Cr

When goods are issued to the production order the following transaction taken place:_

Consumption of raw materials Dr Stock A.c Cr

When goods are received from the production order the following entries

Inventory A/c Dr Cost of goods produced Cr price difference Dr/CR

when goods are dispatched to customer through delivery

Cost of goods sold Dr inventory Cr

When goods are issued to a cost center or agsainst expenses

Repairs and maintaince Dr inventory CR

when goods are stock transfered one plant to other plant

Stock A/c Dr ( receiver)

Stock a/c (Sending location) Price difference

When goods are revaulted

Stock a/c dr/cr Inventory reveolution a/c dr/cr

When work in progress

Work in progess Dr change in wip cr

When sales of goods despacthed

Customer A/c Dr revenue a/c cr excise duty payable Cr sales tax payable Cr

Excise duty paid Dr Excise duty payable Cr

If any query feel free ask me

Regards Roobal