Excise Utilization

[Former Member]

Hi,

Can anybody pls tell what is Excise utilization?

where and why it is use?

what is the use of utilization at the time of ARE1?

From SD point of view what is his use?

Regards,

Rahul

[Lakshmipathi · Accepted solution]

Below is the explanation given by SAP on Excise Utilisation

You specify which CENVAT accounts are to be debited by the Fortnight Utilization of CENVAT report: When the report calculates how much excise duty you must remit, it automatically proposes which CENVAT accounts the duty should be debited to. Here, you specify those defaults.

You can either:

- Debit all the excise duty to one account

- Debit the excise duty to more than one account, in which case you specify which percentage is to be debited to each account

For example, If you want 50% of basic excise duty (BED) to be debited to the RG 23A account and the remaining 50% to the RG 23C account, you would make the following settings:

Acct name BED perc.

RG 23A BED account 50

RG 23C BED account 50

Alternatively, to debit all of the BED to the RG 23A account, and then RG 23C account, if there is not enough in the RG 23A account, you would make the following settings:

Acct name BED perc. +

RG 23A BED account X

RG 23C BED account X

When you come to run the report, the system takes the RG 23A account because it is the first one you have entered. If this account does not cover the BED, the system takes the RG 23C account instead.

thanks

G. Lakshmipathi