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Former Member

CIN accounting entry

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

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1 Answer

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    Former Member
    Sep 04, 2008 at 09:30 AM

    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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