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Former Member
Apr 22, 2010 at 09:28 AM

Cenvat on Capital Goods Procurement (CIN)

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Hi SAP Gurus,

With respect to the Capital Goods procurement in CIN, my client has requested the following process -

Capital goods have 5 years useful life and want to sell it after 3 years usage -

Excise on the Capital Goods = Rs.20,000/-

So this year Cenvat Credit = Rs.4,000/- and the next 2 years Cenvat Credit = Rs.4,000/- each

Total Cenvat credit = Rs.12,000/-

(which is calculated as 20,000 INR / 5 year * 3 year = 12,000).

But the Cenvat balance of Rs.8,000 [20,000 ➖ 12,000] should be added back (cancel the offset) and it should be assinged to cost.

Is the above process possible in SAP..???

Can anyone please let me know.

Thanks & regards,

Chaps