CIN G/L accounts at the time of billing and excise invoice

[former_member786285]

Hi

I have a doubt about Billing and excise invoice Accounting entries.

For EX : At the time of Billing the Accounting Entry is

Customer A/c   Dr    (G/L 100000)                              (From VKOA)

           to  Sales Revenue  (Cr) (G/L 100001)             

           To Basic Excise Duty (Cr)  (G/L 100002)

           To Edu Cess              (Cr)  (G/l  100003) 

           To S,Edu Cess           (Cr)  (G/L 100004)

At the time of Excise invoice

           Basic Excise Duty   (Dr)    100002                   (From DLFC)

           Edu Cess              (Dr)  (G/l  100003)               (From DLFC)

           S,Edu Cess           (Dr)  (G/L 100004)               (From DLFC)

                   To cenvat payable A/c (Cr)   100005          (From DLFC)

At the Time of MIRO vendor invoice verification

BED (Dr)     (100005)

Edu Cess   (Dr) (100006)

S.Edu Ces    (Dr) (100007)

Gr/Ir Clg       (Dr) (100008)

       To Vendor A/c  (Cr)     

At the time of excise invoice from MM side

Cenvat clrg  (Dr)    100009

        To BED (Cr)     (100005)

         To Edu Cess   (Cr) (100006)

          To S.Edu Ces    (Cr) (100007)

Please let me know the accounting entries and G/L accounts are correct or not?

Regards

Srini

[former_member198650 · Accepted solution]

Hi Srini,

This is totally depend on your client requirement. If they want the entries should be passed as mentioned you, then it is possible. In billing, instead of using BED,cess, Ed.cess GLs we can use single GL i.e.cenvat suspense. At the same in MIRO also we can use one GL GR/IR- excise clearing instead of multiple BED GLs.

Regards,

Mukthar

[former_member786285 · Accepted solution]

Hi Mukthar

Thanks For your reply

I want to know for below points

At the time of billing

Instead of Cenvat suspense Account i have maintained BED, EDU Cess, S.H Edu cess total three G/L accounts like 100000, 100001, 100002

At the time of Excise invoice

The above three G/L accounts should be debit or another G/L account i should maintain in the DLFC Excise transaction type

Please let me know

Regards

Srini

[former_member198650 · Accepted solution]

Hi Srini,

You can maintain the three GL accounts in VKOA for posting at billing. But you can only maintain 1 GL account for posting debit entry at excise invoice positng. You cannot split the debit entries at excise invoice positng, because there is only one field "Cenvat suspense" available in excise account determination. So you have to define only one GL account both in VKOA and excise account determination. The accounting entry will be as shown below:

Customer A/c   Dr    (G/L 100000)                              (From VKOA)

           to  Sales Revenue  (Cr) (G/L 100001)            

           To Excise Duty on billing (Cr)  (G/L 100002)

           To Excise Duty on billing (Cr)  (G/l  100002)

           To Excise duty  on billing (Cr)  (G/L 100002)

At the time of Excise invoice

           Excise duty on billing  (Dr)    100002                   (From DLFC)

                   To cenvat payable A/c (Cr)   100005          (From DLFC)

However you can split cenvat payable account as BED,Ed.cess & Sec.edu.cess in DLFC.

Regards,

Mukthar

[former_member786285 · Accepted solution]

Hi Mukthar

Thank you very much..

Regards

Srini

[former_member786285 · Accepted solution]

This message was moderated.

[Former Member · Accepted solution]

Hi Srini h,

Mukar ali information in correct. and you should be create Gl account under P&L accoutn which are crediting  by the time of VF01 and GL accout which is debit by the time of excise invoice.

Customer a/c DR
    To sales a/c
    To Sales ED recover a/c DR (P&L)
     To Sales sugar cess recover a/c (P&L)
    To  sales educ cess recover a/c Dr (P&L)
     To sales SHE cess recover a/c Dr (P&L)
     To fright charges a/c
   
Central excise duty a/c Dr (P&L)
         To ED pyable a/c  -sanklin (BS)
          To Cess payable a/c -sanklin (BS)
          To E cess payable a/c -sanklin (BS)
          To SHE cess payable a/c - Sanklin (BS)

[former_member222241]

Hi,

At the time of

MM

1. MIRO

CENVAT Clearing A/c Dr

To Vendor

2. J1IEX

BED Receivable - Dr

ECS Receivable - Dr

S & H Receivable - Dr

To CENVAT Clearing A/c

SD

1. VF01

Customer - Dr

To ED Suspense

2. Excise

ED Suspense

To Liability for BED

To Liability for ECS

To Liability for S & H

Regards,

Tejas

[Lakshmipathi]

Have you checked with your FI consultant before posting here?  SCN Members cannot confirm whether the G/L accounts created are correct or not. 

G. Lakshmipathi