1 Reply Latest reply: Sep 4, 2008 11:30 AM by Guest RSS

CIN accounting entry

Hem Gai
Currently Being Moderated

Hi sap gurus,

 

can anyone explain in deatils all accounting  entry after normal invoice and after excise invoice

 

also explain which registerd get updated and at wat stage

 

wat is the cenvat suspense aacount wat is cenvat clearing account and wat is cenvat suspense account and when that accounts get updated.

 

 

regards

 

Hemant

  • Re: CIN accounting entry
    Currently Being Moderated

    Hi All,

     

    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           Dr.       (50%)

     

                                        Cenvat On-hold                       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                       Cr.

     

                        PLA Account                           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            Dr

     

                          To GR/IR Clearing A/c          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        Dr

     

                           To Canvat Clearing A/c        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

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