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Former Member
Mar 05, 2013 at 10:44 AM

Freight Clearing amount wrongly inventorised under Cenvat Clearing Account.

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Hello Experts,

When we reconcile Cenvat Clearing for audit purpose we have found that due to customizing mistake Freight Clearing amount is inventorised under Cenvat Clearing Account ideally it shows Zero balnce. Actually while creating PO estimated freight cost is entered in PO and Planned delivery cost for freight is not yet booked thorugh MIRO. Actual freight cost is booked through FB60 and it is directly posted to consumption account (P&L Account) as per physical invoice. Now what happed is that amount inventorised while MIGO is posted in Cenvat Clearing Account i.e. Credit balance in Cenvat Clearing A/C but corresponding MIRO entry is not performed thats why cenvat clearing account shows the huge amount.

How can i reconcile this Cenvat Clearing Account ? Is there any adjustment entry by which we can match off the debit and credit balance of Cenvat Clearing Account.

Below is the detail status of Cenvat Clearing Account.

Cenvat Clearing Account (448613) Reconciliation status

Balance till 31st March 2012

-12,555,221.85

Particulars

Amount

Remarks

Manual freight paid through G/L 624250 (P&L A/C)

  1. 6637755.54

Manual Posting done for Freight Vendors (As discussed with Mr. Sameer Kulkarni).

ZDC1 - Local Freight Inventorized

  1. 11302899.06

Inventorized Freight value Through MIGO.

Depot PO not Inventorised(45 nos. PO)

  1. 1334015.65

Only MIRO booked & not inventorised.

Diff in MIRO and J1IEX(Excess) value

  1. 112955.91

Excess Credit taken.

J1IEX posting pending

  1. 598164.47

Pending for Cenvat credit.

MIRO for Custom not posted

  1. 110292.51

Pending for Cenvat debit.

MIRO posting pending

  1. 382170.47

Pending for Cenvat debit(J1IEX posted after MIRO)

Manual Entry posted(Service Tax transfer)

1,100,329.00

Entry need to be Reverse.

Please suggest me solution on this query as soon as possible.

Regards,

Vishal Jadhav