EXCISE

[Former Member]

please tell the complete cycle of excise for a manufacturing unit.

suppose if the plant procure the excisable good the what are the activitys happen at po and gr .

i mean which registers records the excise etc.

[Former Member · Accepted solution]

hi

As per Indian Law, the excise authorities require you to maintain the following registers relating to excise duty.

Register RG 1

Register RG 23A and 23C, Parts I and II

Register RG 23D

Personal Ledger Account (PLA)

Register RT-12

Register RG 23A and 23C

When the ordered materials arrive, you post the goods receipt and the excise invoice. The R/3 system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice.

A record of all receipts and issues related to excisable materials is being kept in excise register in RG 23A (Raw Material) and RG 23C (Capital goods) by manufacturing plants. The register consists of two parts:

Part I shows the quantities of the materials.

Part II shows the amounts of excise duty on the materials, and how much you have transferred to the CENVAT accounts.

Part I Entries

When you enter a goods receipt for excisable materials, the system automatically asks you if you want to create the Part I entry in Register RG 23A or RG 23C. If so, the system generates a Part I entry. If not, it does not, but you can generate all missing Part I entries later.

In the following to cases, the system does not automatically generate Part I entries for goods issues of excisable materials;

A goods issue for vendor returns

A goods issue for stock transport orders for plants (in case of Goods Movements transaction only)

Part II Entries

The system automatically creates an entry in Part II of the appropriate register in case of posting of an incoming excise invoice, or an outgoing excise invoice. All Part II entries are serially numbered. An accounting document for each posting is created by the system to transfer the various types of excise duty to the appropriate CENVAT account.

CENVAT Document

A CENVAT document is an accounting document that the system automatically creates when it generates a Part II entry. The following accounting entry passed in case of Part II entry generation

For an incoming excise invoice;

Account Debit Credit

Basic Excise Duty 1500.00

CENVAT Clearing Account 1500.00

The excise duty is cleared from the clearing account on entering of vendor invoice.

For an outgoing excise invoice;

Account Debit Credit

CENVAT Suspense Account 1700

Basic Excise Duty 1500

PLA 200

[Former Member · Accepted solution]

hi rb

you have given me a very very valuable piece of information ..... any other infor mation if u can provide to me or any document on cin to understand it my mail id is baxter.jas@gmail.com

[Former Member]

Hi,

You have to maintain the chapter id & material combination in table J1ID. If you are going to take CENVAT on the material procured, then also maintain the CENVAT determation. Also maintain the vendor excise details. Depending upon this excise duty will appear in the PO. At the time of GR, you will have to enter the excise invoice number & date & the option of 'Capture & Post Excise Invoice'. Then the appropriate excise registers will be updated with the quantity & value of the excise duties. When you sell your finished product, you can avail this modvat.

Regards,

Prashant

[Former Member]

hello

for incoming material part1(qty update) and part 2 value update) will take place

RG23A- and RG23C are the 2 registers used for incoming material.

RG23d- for Deppo

RG1- finished Product...

[Former Member]

can u please elaborate u r answer

as u have mentioned for finished product register is RG1 so it means that these registers are material type dependent is it true

[Former Member]

Hi baxter,

You are right.

For this we are maintaining in J1ID "material and chapter ID combination"

Materialplantchapter ID--matl type.

This matl type is important for choosing which register should be updated.

The material type is one of the factors that affects how the excise duty is handled. Input excise duty on raw materials, for example, can usually be deducted in full from the output duty, whereas the duty on capital goods can be deducted over two years: 50% in the current year, 50% in the following year.

Material type Register affected

Assets, tools, consumables RG 23C

Raw materials RG 23A

Finished goods RG 1

Hope this clears you

regards

ravi