+`-+SAP FI CENVAT Entries

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

Dr.

GR/IR clearing

Cr.

During Excise Invoice Credit

Cenvat Account

Dr.

Cenvat Clearing

Cr.

During Invoice Verification

Cenvat Clearing

Dr.

GR/IR Clearing

Dr.

Vendor Payable

Cr.

For Domestic proceurement of Capital Goods

During GR
Material Stock

Dr.

GR/IR clearing

Cr.

During Excise Invoice Credit

Cenvat Account

Dr.

(50%)

Cenvat On-hold

Dr.

(50%)

Cenvat Clearing

Cr.

During Invoice Verification

Cenvat Clearing

Dr.

GR/IR Clearing

Dr.

Vendor Payable

Cr

Subsequent of Capital Goods

Cenvat Account
Cenvat On-hold

Dr.

(50%)
Cr.

(50%)

For Import Procurement of Raw Material

During Customs Duty Clearing invoice
Custom Clearing

Dr.

Custom Payable

Cr.

During GR
Material Stock

Dr.

GR/IR clearing

Cr.

During Excise Invoice Credit

Cenvat Account

Dr.

Custom Clearing

Cr.

During Invoice Verification

GR/IR Clearing

Dr.

Vendor Payable

Cr.

For Excise Duty Credit of Raw Material without PO

Cenvat Account

Dr.

Cenvat Clearing

Cr.

For Excise Duty Reversal through Excise JV

Cenvat Clearing

Dr.

Cenvat Account

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

Dr.

Cenvat payable

Cr.

For TR6C Challan

PLA Account

Dr.

PLA on hold Account

Cr.

During Fortnightly Utilization

Cenvat payable

Dr.

Cenvat Account

Cr.

PLA Account

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

Dr.

Cenvat Account

Cr.

For Subcontracting Challan Recredit

Cenvat Account

Dr.

Cenvat Reversal

Cr.

What should be my accounting entry in SD ?

For Factory Sale
During Billing Document
Customer Account

Dr.

Sales Account

Cr.

Cenvat Suspense Account

Cr.

During Excise Invoice Creation

Cenvat Suspense Account

Dr.

Cenvat payable

Cr.

For TR6C Challan

PLA Account

Dr.

PLA on hold Account

Cr.

During Fortnightly Utilization

Cenvat payable

Dr.

Cenvat Account

Cr.

PLA Account

Cr.

For Stock Transfer through SD

No Accounting entries for Proforma Billing Document

During Excise Invoice Creation

Cenvat Suspense Account

Dr.

Cenvat payable

Cr.

For TR6C Challan

PLA Account

Dr.

PLA on hold Account

Cr.

During Fortnightly Utilization

Cenvat payable

Dr.

Cenvat Account
PLA Account

Cr.
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

Dr
Cr

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

Dr

Cenvat Clearing A/c

Dr

VAT Setoff A/c

Dr

To Vendor A/c

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

100

Dr. Inventory of Operating Supplies

20

Dr. Inventory of Packing Materials

10

Cr. GR/IR Clearing A/c

130

II. On Invoice Verification: (MIRO)

Dr. GR/IR Clearing A/c

130

Cr. Vendor A/c

130

III. On Goods Issued for Production: (MIGO-movement type:261)

Dr. Consumption of Raw Materials

100

Dr. Consumption of Operating Supplies

20

Cr. Inventory of Raw Materials

100

Cr. Inventory of Operating Supplies

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

120

Dr. Consumption of Packing Materials

10

Cr. Inventory of Semi-Finished Goods

120

Cr. Inventory of Packing Materials

10

VI. On Finished Goods Received from Process: (MIGO-movement type:101)

Dr. Inventoyr of Finished Goods

130

Cr. Cost of Goods Manufactured (Finished Goods)

130

VII. On Finished Goods Issued for Sales: (VL01N-movement type:601)

Dr. Cost of Goods Sold (Finished Goods)

130

Cr. Inventory of Finished Goods

130

VIII. On Raising Bill for the Customer: (VF01)

Dr. Customer A/c

145

Cr. Sales A/c

145