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Sheet1

SCHEME OF ENTRIES FROM INWARDING OF RM TO RAISING OF SALES\EXCISE INVOICE.

S.NO Description T.Code Entry

1 In warding of RM or Packing material MIGO Inventory RM A/C Dr


J1Iex RG 23 A A/C Dr
To GRIR A/C
To Cenvat Clearing A/C

2 At the time of Bill Booking with VAT MIRO GRIR A/C Dr


Cenvat Clearing A/C Dr
VAT A/C Dr
To Vendor A/C Dr

3 RM Issued for Production MIGO RM Consumption A/c Dr


To Inventory RM A/C

4 Receipt of Finished Goods MIGO Inventory FG A/C Dr


To Cost of Goods Manf. A/c

5 Delivery to Customer vl02n Cost of Goods Sold A/C Dr


To Inventory FG A/C

6 Creation of Billing Document vf01 Customer A/C Dr


To Sales A/C
To ED recovered on Sales A/c
TO Vat/CST Payable A/C

7 Creation of Excise Invoice J1IIN ED Paid A/C Dr


TO ED Payable A/C

8 Collection from Customer F-28/F-26/ff68 Bank A/C Dr


To Customer A/C

9 Payment to PLA Hold Account FB50 PLA on Hold A/C (FI A/C) Dr
To Bank A/c

10 Excise Journal Voucher J1IH PLA A/C (excise A/C) Dr


To PLA on Hold A/C

11 Monthly Utilization J2IUN ED Payable A/C Dr


To PLA A/C

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TO RG23A A/C

Additional Notes:
1 Excise duty is eligible for availing Credit movement goods are inwarded to factory
Whereas VAT can be availed only after booking the Invoice.

2 At the time of Bill booking In Miro Only tax items which are cenvatable will be debited
Tax items which are not cenvatable (for which credit cannot be availed) will form part of stock value.
(example: CST / Customs duty in import)

3 Consumption In SAP are of three types as follows:

a) Consumption through production Order/process order based on Bill of material (M type 261)
Production or Process order will be created in PP module

b) Consumption through Maintenance Order. It is created in PM module ( M.type 261)


( Stores & Tools)

c) Consumption through posting to cost center ( M.type 201)


(example waste cloth, Greece, Lab Chemicals)

For all the above 3 cases accounting entry will be same as mentioned below:

RM Consumption A/C Dr
To Inventory Rm / Tools A/C

4 After production posting, first step is to created Sales order in SD module

- Sales order will be created in T. Code - VA01


- Next step would be is to create Delivery advise with reference to Sales order created. T Code – VL01N
- After creating Delivery advised we have to do Post Goods Issue (PGI) in T Code – VL02N
- Billing Document is created with reference to Deliver advised in T. Code - VF01
- Excise Invoice is created in with reference to Billing Document in T. Code - J1IIN

1 In warding of Capital equipment MIGO Capex A/c DR


J1Iex RG 23 C 50% A/C Dr
Cenvat on Hold A/c RG23C DR
To GRIR A/C
To Cenvat Clearing A/C

2 At the time of Bill Booking with VAT MIRO GRIR A/C Dr


Cenvat Clearing A/C Dr
VAT A/C Dr
To Vendor A/C Dr

3 At the time of transferring cenvat on Holdj2i8 carry forward of Capex balance 50% Cenvat

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Note: As part of Year end Activity Balance in Cenvat on Hold A/C will be carried forward to the next year.
It is done through a T. Code called J2I8 – Carry forward of Capex Balancec 50% of Cenvat on Hold

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Sheet1

ISE INVOICE. 14.02.2011

Nature of Accounts Remarks M.Type / Module

B/S Being Material inwarded 101


B/S based on which MM module
B/S cenvat availed
B/S

B/S Being Bill booking made. No movement


B/S GRIR and Cenvat clearing FI-MM
B/S accounts getting posted
B/S

P&L Being consumption of 261


B/S Raw material getting MM module
booked.

B/S Being GRN made for receipt 101


P&L of FG produced with reference FI-MM -PP
to Production Order
Created in PP Module

P&L Being cost of Goods sold FI – SD


B/S getting booked with reference to 601
sales order created in VA01 and posting
Of goods issued based on delivery order

B/S Being customer billing for the sales made.


P&L FI – SD
P&L
B/S

P&L Being Creation of Excise Invoice CIN Version


B/S

B/S Being receipt of money from customer FI module


B/S for the sale made

B/S Being payment to personal ledger CIN Version


B/S adjustment account

B/S Being transfer from PLA on Hold CIN Version


B/S to PLA a/c

B/S Being Excise duty payable adjusted CIN Version


B/S against balance of RG 23A

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B/S and PLA Account

rt of stock value.

der created. T Code – VL01N


T Code – VL02N

B/S Rs. 100000


B/S 4000
B/S 4000
B/S 100000
B/S 8000

B/S No movement
B/S FI-MM
B/S
B/S

x balance 50% Cenvat

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Sheet1

d forward to the next year.


ec 50% of Cenvat on Hold

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doubts to be clarified

What is the reason for routing the ED payable through an Income and Expense account

why don't we credit the Ed payables account directly at the time of creating Billing document'

Ans. It is because configuration has been done in such way that ED payable should be credited at the time of creatin

What is the purpose of having PLA on Hold account

why don't we debit the PLA Account directly at the time of payment.

Reason 1: we have separate gl account for PLA Basic excise duty (BED), PLA cess and PL Sec.Cess. So at the time
only if I debit to PLA ON HOLD account first, then only we will be in a position to adjust PLA BASIC, PLA AED, PLA SED acc
on the requirment. If I directly debit to say PLA BED account, then if I require for PLA AED then it will be not possible to adjus

Reason 2 In spro we have to define Gl accounts to be used for Excise purpopse.(logistics->tax on goods movement -> India->
-> specify gl accounts per excise transaction. whatever the gl accounts mentioned over there alone should be used while pos
If any other gl account is used for excise posting then that transaction will not have any impact on J2iun (i.e. RG excise regist
There are two database FI (GL) database and Excise database maintained. Entries will flow only from FI database to Excise d
to FI database. That is the reason why we first post in PLA Hold account (FI) and then it flow from there to Excise database to
PLA Account balance will be correctly reflected both in FI and Excise database.

While creating Excise invoice in J1IIN, whether ED recovered on sales a/c and ED paid a/c will get posted? Yes.
Expenditure A/c Dr
check with sir regarding
To GRIR the
A/Cflow of entries for Service entry sheet GRN also
(No excise entry)

GRIR A/C Dr
Service Tax clearing A/C Dr
To Vendor A/C Dr
To TDS A/C

Vendor A/C Dr
To Bank A/C

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doubts to be clarified

d be credited at the time of creating excise invoice only.

and PL Sec.Cess. So at the time of making payment to government,


LA BASIC, PLA AED, PLA SED accordingly based
D then it will be not possible to adjust for the same.

->tax on goods movement -> India-> account determinatiion


here alone should be used while posting excise transaction.
mpact on J2iun (i.e. RG excise register).
ow only from FI database to Excise database and not from Excise databse
flow from there to Excise database to PLA account. Then only

/c will get posted? Yes.

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FI org structure

Creation of FI Organizational Structure

Clients Details Definition

Client Name ABC Ltd Company – ABC Group

Business: Pharma Company Code – ABC LTD

Purchase Centralized from Chennai Corporate Office (Nugambakkam)

Creation of Purchase organization

3 Manufacturing Locations

Chennai BA Chennai
Bangalore BA Bangalore
Hyderabad BA Hyderabad

Depots:
Tamil Nadu Plant
Kerala Plant
AP Plant
Karnataka Plant
Maharastra Plant

Product they manufacture


300 FG

Creation of Sales organization Sales Org

Sales Division
Cardio Vascular CV00
Hypertension HT00
Diabetic DI00

Sales Distribution Channel

Directly from factory DF00


Stock transfer from manufacturing to depos. From depos to stocklist ST00

Creation of Profit Center Profit Center


Chennai PCCH
Bangalore PCBL
Hyderabad PCHY

Company, Co code, profit centre, Business area, plant, Pur org, sales org.
Distribution Channel, division.

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FI org structure

Assignment

1000

1000 Company Code will be assigned to Company

P100 Pur. Org will be assigned to Company Code

CH01 BA will not be assigned to any company code


BL01
HY01

1000 All these 5 plants will be


2000 assigned to company code ABC LTD
3000
4000
5000

S100 Sales Org will be assigned to Company code

Sales division will be assigned to


Distribution Channel

Distribution Channel will be assigned to


SALES ORG.

Profit Center will be assigned


to company code

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