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Sapcin470 091213190438 Phpapp01
Sapcin470 091213190438 Phpapp01
Chapter ID: The number given to a material in the schedules of materials published by the government of India.The schedule lists all materials involved in manufacturing, input materials and output materials alike. It shows how much excise duty is levied on each material.Each material in the schedule is assigned its own identification code, called "chapter ID."
The chapter ID are declared in Excise books are maintained here. We Create Chapter ID for Material Master . All Chapter ID where Cenvat determination Is Applicable should be Maintained First .
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For all subcontracting Material ( sent and received ) pls tick on Subcontracting BOX
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Here we define material type as : Consumables Assets Tools Non Convertible Raw Material RG1
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Enter the Material no. in Input and Output Norms with Plant assignment along with Excise Declaration date.
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Put Excise Indicator as : 01 100 % Taxable 09 - Nil Tax The System will determine this Vendor as subject to Excise
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Similar to Vendor, Make Entries for your Customer also Make sure that you assign Appropriate Excise Indicator to your Customer.
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Here we maintain Excise details for the Plant in a combination of CoCode--PlantsFirst Month of Excise YearNo. RangeExcise Indicator
Excise Indictor for all Manufacturing Plants in a Company Code will be 1
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We Maintain Excise Tax rate Based on Material Chapter ID and Final Excise Indicator
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This table will be maintained if there is any excise rate other then Excise rates based on Material Chapter ID and Final Excise Indicator. ( e.g.- S.S.I Vendors , Qty based excise amount ). In purchase order first Excise rates will be searched in exceptional table and then in table based on Final excise indicator and material chapter ID. The exceptional rates will be maintained with combination of Material number and vendor Code as follows.
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SAP also support Sales Tax Setoff. We define the % on the combination of Plant & Material. Also we can define AED & SED on Quantity Basis
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Subcontracting
Without Payment of Excise Duty. With Payment of Excise Duty.
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Eg: PO Conditions
System determine Excise Duty as per TAX Code & Master Data maintained J1ID.
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You pay for custom duties and planned delivery costs called as customs invoice via MIRO.
You do Goods Receipt w.r.f. to PO and custom invoice via MIGO. The System Create PART I Entry in Register RG23A or RG23C and an Accounting Document. You Capture & Post Vendors Excise Invoice via J1IEX or together with MIGO. The System Creates PART II Entry in Register RG23A or RG23C and creates the Accounting Document.
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You Enter the Vendor Invoice via MIRO. The system created accounting Entries crediting your Vendor & debiting the GR/IR Account.
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Subcontracting
There are two ways of handling the excise invoice on the goods that you provide them with: Subcontracting without payment of Excise Duty:
The Process Flow is: 1. You Create a subcontract order via ME21N with item category L. 2. You Create a Transfer Posting Document via MB1B w.r.f. to Subcontract Order. 3. You Create a Subcontracting Challan widely called as 57F4 Challan via J1IF01. 4. You do Goods Receipt with that Challan Reference via MIGO. 5. You Reconcile received Qty. with Challan Qty. via J1IFQ. 6. You complete the Challan using J1IF13.
Under excise law 57AC, when you send materials to a subcontractor for processing, you are not required to pay any excise duty, even though the materials have left your premises. However, if the materials have not been returned to you within a given length of time specified by the law (in 2000, 180 days), you will have to reverse any excise credit that you posted when you purchased the materials. In the case of materials that you have manufactured in-house, you will have to post credit entries to the extent of the CENVAT rate of the assessable value of the materials.
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Subcontracting
Subcontracting under Full payment of Excise Duty:. The Process Flow is: 1. You create a Subcontract Order via ME21N. 2. You create a transfer posting for the materials that you want to send to the subcontractor via MB1B. 3. You create an outgoing excise invoice for the materials via J1IS w.r.f to Material Document. 4. You send the materials to the subcontractor, together with the excise invoice. 5. The subcontractor processes the materials and returns them to you, together with another excise invoice. 6. You capture the subcontractors excise invoice, using the purchase order as the reference document via J1IEX. 7. The warehouseman enters the goods receipt via MIGO. 8. The excise supervisor posts excise invoice via J1IEX. 9. The accounts payable clerk posts the subcontractors invoice via MIRO.
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Stock Transfer
1. You create a stock transport order, and send the order to the issuing plant.
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The issuing plant has processes your order, and when it is ready to ship: a. Issue the goods using a transfer posting via MB1B. b. Create an excise invoice via J1IS. c. Verifies and posts the excise invoice. Then Goods are dispatched, together with the excise invoice.
Once the goods arrive at receiving Plant, a. Enter the goods receipt, again using the stock transport order as the reference document via MIGO. b. Capture the excise invoice, using the GR Document as the reference document via J1IEX. c. Posts the excise invoice via J1IEX.
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The System Creates Excise Entries on the Combination of TAX Code and Excise Master Data Maintained in J1ID
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Stock Transfer
This is the Stock Transfer of our Finished Goods from one Plant to Other. This Stock Transfer follows SD Route. Process Flow: At Issuing Plant: 1. You Create Stock Transfer Order via ME21N or ME27. 2. You Create an Outbound Delivery and w.r.f. Purchase Order via VL04. 3. You do the Post Goods Issue via VL02N 4. You Create Billing Document w.r.f. Outbound Delivery via VF01 and Excise Invoice is created in Background. At Receiving Plant: 1. You do Goods Receipt w.r.f. to Purchase Order via MIGO. 2. You Capture Excise Invoice w.r.f. GR Document via J1IEX or the same can be done in one step via MIGO. 3. You Post CENVAT via J1IEX.
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Accounting Entries
MODVAT Entry When making Goods Receipt for Non-Capital Goods ( Coded and Non-coded done through SAP MM Module). Excise duty RG23A Part 2 Input Dr To GR/IR Liability - Cenvat Cr
CENVAT entry Capital Goods Excise duty RG23C CAPITAL Cenvat In abeyance CAPITAL To GR/IR Liability - Cenvat Sale of Goods Only excise entry through India version Excise duty paid To Excise duty payable account
Dr (50%) Dr (50%) Cr
Dr Cr
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Accounting Entries
TR6 Payment Excise Duty PLA Dr To XXXX Intermediate TR6 A/c Cr If the payment is made on account of some expenditure such as Interest, Stationary and overtime account. XXXX- Expenditure A/c Dr To Excise Duty PLA Cr This is manual JV. Monthly Adjustment When monthly or fortnightly payment is made to Excise dept . Excise Duty Payable a/c To Excise Duty RG23A-Input To Excise Duty RG23C-CAPITAL To Excise Duty PLA ( This is to be done with outgoing payment and clearing only).
Accounting Entries
Return of Excise goods where payment is required to be done immediately. ( Purchase Return ) GR/IR Liability - Cenvat Dr To Excise Duty RG23A-Input Cr } Any one a/c To Excise Duty RG23C-CAPITAL Cr. } To Excise Duty Payable Cr. } ( All LRN entries will be discussed separately). JV every year end to be passed in the subsequent year after the asset is put to use in the subsequent year. Excise Duty RG23C- Capital Dr To Cenvat In abeyance CAPITAL Cr.
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Accounting Entries
Manual JV for Cancellation RCIA GR/IR Liability Cenvat Excise duty RG23A Part 2 Input Dr Cr To Sales Return Excise duty RG23A Part 2 Input Excise Duty Paid Dr Cr
To
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TYPE THE AMOUNT FOR WHICH ACCOUNT TO BE PAID. AND PRESS ENTER. IF THERE IS NO ERROR SAVE The System Creates following Accounting Entries: Dr. Excise Duty Payable Account Cr. RG23A BEDA/c. Cr. PLA
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TR6C Challan
When you dont have enough Balance in either of RG23A BED or RG23C BED to pay off Excise duty, you transfer the Balance amount in your PLA and then do Utilization.
1. You Create an FI Document Dr. PLA and Crediting Bank A/c.
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SELECT TR6 ICON IN THE POP SCREEN TYPE THE ACCOUNTING DOC NO FROM GLA/C CODE YEAR COMPANY CODE PLANT EX GRP AND SUB TRAN AND PRESS ENTER
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Excise Registers
RG23A PART I: This Register has now become Obsolete and not required now a days. This Register shows the quantities of the materials. RG23A PART II: Part II shows the amounts of excise duty on the materials, and how much you have transferred to the CENVAT accounts RG23C PART I: This Register has now become Obsolete and not required now a days. This Register shows the quantities of the materials.
RG23C PART II: Part II shows the amounts of excise duty on the materials, and how much you have transferred to the CENVAT accounts
PLA: These is Personal Ledger Account for Excise. RG23D: It records the receipts & issues of excisable materials at Depot. RG1: A register of excisable finished goods kept by manufacturing plants. The register shows goods movements from the factory to a store specifically for excisable finished goods.
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RG1 Register
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Enter : Posting date Movement Type for Receipts Classification as ROP Select RG1 and press f8
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You get the List of Material Documents for Receipts This is called Traffic Lights Select all & Simulate. Traffic Lights goes Green. Again Select All and Click on Create Register Entry. System will update your RG1 Register.
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Repeat the Procedure: Enter Posting date Movement Type Classification as IDH Select RG1 and press f8
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If Traffic lights goes Green, it means system will update the material Documents but if it goes Red then it means that there is no stock
Select all and click on Create Register Entries. The System updates the RG1 Register
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Select Register
Execute
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Enter: Company code Excise Group Posting Date Select the Annexure for Transaction details & Abstract for Total Credits and Total Debits
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You get the List of Excise Invoices for which you have to avail CENVAT Select the Excise Invoice(s) and Click on Transfer Credit. System Creates an Accounting Entry: Dr. CENVAT on HOLD A/c. Cr. MODVAT Clearing A/c.
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SYSTEM DISPLAYS THE LIST OF EXCISE INVOICE FOR WHICH CENVAT IS NOT AVAIED
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MONTHLY ACTIVITIES
J2IU - PLANING TR6 AMOUNT DEPOSIT BY SIMULATE
J1IH - UPDATION OF TR6 CHALLAN AMOUNT IN PLA REGISTER J2IU - UTILIZE THE CENVAT AMOUNT
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YEARLY ACTIVITIES
On Union Budget Check any Tariff ED % changes update if any
Close all Pending Excise Transaction J1IH CENVAT Adjustment
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