Pensol Industries Ltd

User Manual 50 % Cenvat on Capital Goods

Author : Satish Doke Reviewer: Approver Release Date : - 16 May 2013

Plot No. 92, Road No. 16, M.I.D.C., Marol, Andheri (East), Mumbai - 400093, India. Voice: +91-22-6722 0606 Facsimile: +91-22-6722 0600

50 % Cenvat on Capital Goods

Authorization
Prepared By Ver 1.0 Name Satish Doke Date 16-05-2013 Reviewed By Na Date me Approved By N D

Change History
Ver 1.0 Section All Date Change Information Original Document

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Table of Content

Sr. No 1 2 3 4 4A 4B Introduction Basic Setup Master Setup Transaction Goods Receipt PO Incoming Excise Invoice

Particulars 5 6 7 11 11 13

Page No

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Abbreviations used in the document

Sr.No 1 2 3 4 5 6 Abbreviation AGT Pensol SAP GRPO IEI
50 % Cenvat

Full Form A G Technologies Pvt Ltd Pensol Industries Ltd SAP Business One Goods Receipt PO Incoming Excise Invoice 50 % Cenvat on Capital Goods

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50 % Cenvat on Capital Goods

Purpose of This Document

This document is intended to inform Pensol about the necessary steps that should be taken to provide the desired 50 % cenvat on capital goods in current year and 50 % next year process in SAP. This document provides general hints, tips, and recommendations concerning the use of 50 % Cenvat process and SAP Business One. 50 % Cenvat functionality depends not only on functionality, but also on correct setup and usage. The content of this document is subject to change since both functionality of 50 % Cenvat process and SAP Business One may change in the future.

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Basic Setup / Prerequisite

In G/L Account determination master, needs to set the capital Goods On Hold Percentage and Capital Goods On Hold Percentage account. Path: - Administrator Setup Financial G/L Account Determination

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Master Setup

Skillful use of master data is essential to getting the most out of the SAP Business One application and 50% Cenvat on Capital Goods Process. Data describing Item Master, Business Partners (Vendor), Item Group etc are master data. When a new document (GRPO and Incoming Excise Invoice), is created, master data provides and set much of the necessary information in the transaction. Master data also keeps track of predefined values and settings that are used in Goods Receipt and Incoming Excise Invoice. Proper setup and management of master data allow everyone to use of 50% Cenvat on Capital Goods process in SAP to maximum efficiency. If master data is set up accurately, creating a document such as a GRPO and Incoming Excise becomes a lot easier. You only have to confirm that the default information is correct. However, if master data is not accurate, business processes come to a halt while people figure out how to enter the correct information. This User Manual offers guidance to help you understand, set up, and use of master data properly so that you and your company get the full benefit of 50% Cenvat On Capital Goods process in SAP. Basic Setup / Prerequisite required for handling the 50 % Cenvat on Capital Goods Process in SAP. For 50 % Cenvat on Capital Goods Process following master needs to be created / updated.
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1. Item Master 2. Business Partner Master (Vendor 3. G/L Account Determination 4. Item Master: - Create item group as Capital Goods and assign to the item master. It is not mandatory to create Capital Goods as item group, it is depend on customer need & requirement. Select following option in Item master. 1. Fixed Asset option on right top of the item master. 2. Select item as excisable 3. Select material type as capital goods. Item Master

2. Vendor Master: - In Vendor master, select the Asset account from the existing. Path: Business Partner Business Partner Master Data (Accounting Data Tab)
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Transactions
50 % On Cenvat on Capital Goods will be route through GRPO and Incoming Excise Invoice transaction. This function allows you to set the 50% Cenvat for current financial year and 50% for next financial year. When GRPO and Incoming Excise entry is added with this function, it is recorded directly to the database and cannot be deleted. To cancel an GRPO and Incoming Excise Invoice, create a reversal of GRPO i.e. Goods Return and Outgoing Excise Invoice. Following is the path for opening Goods Receipt PO transaction screen. Purchasing A/P Goods Receipt PO Inventory Transfer

Goods Receipt PO

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Incoming Excise Invoice: Create Incoming Excise Invoice based on Goods Receipt PO

Journal Entry

In this entry system automatically post the 50 % amount to the Cenvat on Capital Goods on Hold A/C based on setting done in the G/L Account Determination.

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A/P Invoice: - Create A/P Invoice based on Goods Receipt PO

Journal Entry

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