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Former Member

Excise getting inventorised during GR and reversed druing IR

Hi All,

When posting GR , excise duty is getting inventorised and the same is getting reversed during IR. Accounting wise it will tally but in the first place itself excise shouldn't be inventorised at GR and reversed at IR

Current situation

Example - PO price 100 Rs, Excise % 12.5 Rs

Accouting entries at GR

Stock 112.5 Rs Debit

GR/IR 112.5 Credit

During excise availment in J1IEX excise is correctly posted

Accoutig entries during Part 2

BED 12.5 Rs Debit

Cenvat clearing 12.5 Rs Credit

Accounting entries at IR

Vendor 112.5 Rs Credit

GR/IR 112.2 Debit

Cenvat clearing 12.5 Debit

Stock 12.5 Credit



Desired result

During GR excise shouldn't be inventorised and reversed during IR

Example - PO price 100 Rs, Excise % 12.5 Rs

Accounting entries at GR should be

Stock 100 Rs Debit

GR/IR 100 Credit

During excise availment in J1IEX excise is correctly posted

Accounting entries during Part 2

BED 12.5 Rs Debit

Cenvat clearing 12.5 Rs Credit


Accounting entries at IR

Vendor 112.5 Rs Credit

GR/IR 100 Debit

Cenvat clearing 12.5 Debit

Can anyone kindly let me know what configuraiton should be changed if in case

Thank in advance

Regards

Ranjjini

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5 Answers

  • avatar image
    Former Member
    Dec 02, 2016 at 01:19 PM

    Maintain Excise Details for the Material -Chapter ID combination and Vendor Excise detail in Excise Master i.e J1ID and try to the necessary process.

    Assuming the Excise Config has been done properly.

    Hope it will help.

    Regards

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    Former Member
    Dec 03, 2016 at 02:04 AM

    Hi Debajyoti,

    Excise details are maintained in J1ID , else we will not be even able to capture excise invoice.

    The issue here is why is excise getting inventorised during GR

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  • Dec 03, 2016 at 06:21 AM

    Hi,

    You might be maintained excise non-credit condition along with excise cr condition in FV13. And also you get information in the taxes tab of the PO.

    Regards,

    Mukthar

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  • avatar image
    Former Member
    Dec 03, 2016 at 06:09 PM

    Excise to be inventorised OR Set-off depends on how material behave to business.

    For excise to be invetorised - you need to use a tax code in PO where tax code created with all condition types which are non-deductable in nature

    For excise to be Set-off:- you need to use another tax code in PO where that tax code created with all condition types which are deductable in nature.

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    Former Member
    Dec 06, 2016 at 05:50 AM

    Hi All,

    Thanks for our replies.

    PO has tax codes which are deductible in nature, So logically it shouldn't be inventorised during GR.

    Just wanted to know from others experiences, in case if there is any other reason for this.

    Regards

    Ranjjini

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