Cenvat on Capital Goods Procurement (CIN)

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

Hi
I know the standard scenario for Excise and its related settings. Our system is also working absolutely fine for the 50% Cenvat credit utilization.
But the customer wants to have a process like that of as I had explained earlier.
Can you suggest whether it is possible.
Thanks,
Chaps

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Vender return of capital goods in CIN(India)

Hi Experts,
     Cenvat account of Capital good posted (50%)   G/R stage and next April.
     How about vender return?
     Pls explain sinalio.(TRC)
Regards,
    Gaito

Hi,
There are two ways for vendor return.
1. return delivery:
Here you are posting the document with reference to the original GR document.If all the settings for CIN are correct then it will trigger the excise tab in the MIGO , check the duities and post the document.It will reverse the entries.
2.Return PO:
In this case you do the GR with 161 mvt. type followed by credit memo.
The system takes care of the CIN postings.
Cheers,
Satish Purandare

Cenvat on Capital Goods

Hi all,
Whenever credit on capital goods need to be availed, you can claim 50% of credit at the time of receipt by specifying ‘Yes’ in the ‘Claim CENVAT.
Now I want to know that where I have to setup / define the percentage of CENVAT credit the user wants to take immediately on PO receipt of the goods.
regards
Sanjay

Hi
I know the standard scenario for Excise and its related settings. Our system is also working absolutely fine for the 50% Cenvat credit utilization.
But the customer wants to have a process like that of as I had explained earlier.
Can you suggest whether it is possible.
Thanks,
Chaps

100% cenvat on capital goods

Dear all,
How can 100% cenvat be availed in case of capital goods in case of transfer from one plant to another.
The T-code used is J1IH

Yes, this is std behaviour of the system,as per the law the AED will be allowed to take 100% credit in first finanacial year only.
For more information refer the below link.
http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442e6f?quicklink=index&overridelayout=true

CENVAT reversal of capital goods after Vendor payment

Hello all,
I want to reverse CENVAT for capital goods. In this case, MIRO is already done and Vendor payment is also carried out.
Please suggest the steps by which I can reverse CENVAT properly.
Kapil

Hi,
Refer thread for option
return material to vendor after IV is done + CIn
Regards,
Biju K

While taking balance cenvat credit on capital goods not showing J2I8

DEAR ALL
While taking balance cenvat credit (Carry forward) on capital goods not showing in J2I8 transaction, in j1iex is Header level is showing INPROCESSES But item level is showing POSTED.
in register PART2 is Upted.
Thanks And Regards
Sonu

Hi,
In capital goods procurement we will use 50% excise this year and rest of 50% credit we will use it in next year.
Bcoz of this in header level its showing incomplete and the invoice posted for 50% created Part 2 entries.
Hope its clear.
reg
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*Assign points if the info is useful

CAPITAL GOODS CENVAT FOR 2007-2008

hi,
This is with reference to Cenvat of Capital Goods I.E.50 % of 2007-2008,We have uploaded balance on 16 th Nov-2007 & now this balance we haveto utilize in current year. What will be the procedure for Excise & Finance Record. ?
Please give the detail procedure & also note that we have done J2I8 for the period 16 u2018th Nov-2007 to 31u2019st Mar-2008
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ssp

J2I8 transaction code- give comp code, excise group, plant. then execute
you will get list of vendor excise invoices
you check required excise invoices and click on 'transfer credit'
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Excise Invoice Cycle for capital goods

Hello,
Can someone enlist the complete CIN config settings & J1ID settings for capital goods procurement.
Regards
Mahesh

Hello,
Can someone enlist the complete CIN config settings & J1ID settings for capital goods procurement.
Regards
Mahesh

50% Credit in VAT for Capital Goods(Assets)

Dear SAP MM Experts,
My client need to take 50% VAT credit in the First year and remaining 50% in the next year for Assets(Capital Goods). Currently I have configured 50% Cenvat credit for Excise duty, it was working very well using J1ID.
But for VAT, what configuration is necessary to take 50% VAT credit for Captial goods(Assets). Right now I use JVCD for taking 100% to VAT and JVCN to make it as inventory(Non Deductible).
Please do the needful.
Thank you.
Regards,
Baskar

This is standard behavior of SAP. In case domestic purchase, we can avain 50% CENVAT on additional excise duty (AED).
But in case of Import , we can avail 100% CENVAT for capital goods on additional customs duty (ADC).
Understand the difference between ADC & AED.
Try to convince client for the same. If he is not convinced, better write to SAP. Don't make changes related to subtransaction type 'IP'.

Cenvat credit on capital goods.

Dear all,
1. There is a rule that the cenvat credit in respect of capital goods shall be allowed for the whole amount of the duty paid on such capital goods in the same financial year if such capital goods are cleared from the factory as such in the same financial year.
2.The system is designed in such a way that the cenvat credit in respect of capital goods received in a factory or in the premises of the duty paid of output service at any point of time in a given financial year shall be taken only for an amount not exceeding fifty per cent. of the duty paid on such capital goods in the same financial year.
Please suggest us how to configure the system for the point no :1
Thanks & Regards,
A.Anandarajan.

By standard 50% credit can be taken on first year,If u want to take full credit use transaction J2I8,
Also refer both links
SAP MM CIN Settings
http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/207dd2ad-bf92-2b10-a88b-e3a4a01ca7fc
Capital Procurement in SAP
http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442e6f
Edited by: Jeyakanthan A on Apr 22, 2010 2:01 PM

Procurement of Capital Goods-Accounting entries error

Hi All
I processing procurement of Capital Goods scenario.
Qty - 1; Base Amount: 100; BED: 16%; AED: 8%; SED: 4%
When I posted Goods Receipt, I beleive the accounting entries are expected to be as follows:
Dr BED 16
Dr AED   8
Dr SED   4
Cr CENVAT Clg 14-
Cr CENVAT On Hold 14-
But the Part II entries are like as following after posting the GR:
Dr BED 8+
Dr AED   4+
Dr SED   2+
Cr CENVAT Clg 24-
Dr CENVAT On Hold 10 +
Could you please help in this regard
Best Regards
Rahul

for capital goods u can't claim the whole excise that u have paid, it will be only 50% u can claim for the first year..

Availing full CENVAT Credit for Capital goods

Hi,
In our client, they want avail full cenvat credit for Capital goods in the present fiscal year itself. How can we do this in SAP? Plz. explain me.

Hi Pawan,
You cannot avail total 100% Credit on the CENVAT paid on capital purchase as per the goverment rules.
The puirpose of maintaining the goods as capital goods are that you are only eligible for 50% credit in the current fiscal year and remaining 50% Credit in next Fiscal Year. its nothing that we configured, it is standard functionality in the country version. The Excise Transaction Type CAPE which come in to play at the time of capital procurement.
1. If your Client Requirement is to take 100% Credit for this material, then ask them to maintain Chater ID for this Material in J1ID as RAW materail. and During Excise Auditing period your client has to give relevent explaination to Excise Authority.
2. If your client has maintained in J1ID as capital , you can take the Remaining 50% Credit in current fiscal year also using J2I8, Before using this transaction verified from Excise Authority.
Or else As per my knowledge you cannt take 100% excise credit for Capital goods.
Cheers
Manoj K Singh

CIN configuration for capital goods

Dear All,
I have to configure CIN for capital goods purchase. Please let me know the important configuration required for the same.
where we can set 50% on hold conditions ?
Regards,
Umesh

Hi,
1. for Capital Goods, first in J1ID miantain in material and chapter id maintain that material code with Assets.
2. In Create PO with Account assigment as Assets.
3. In SPRO, while maintaing specify Excise accounts per Excise TT as
CAPE          CR Credit     ONHOLD CENVAT on hold account
CAPE          DR Debit     ONHOLD CENVAT on hold account
CAPE          DR Debit     RG23AT1 RG 23 AT1 Account
CAPE          DR Debit     RG23BED RG 23 BED account
CAPE          DR Debit     RG23ECS RG 23 ECS Account
4. Now in PART2, RG23C Register type is updated for Capital Goods
5. The Excise Posting Entries must be like
During Excise Invoice Credit
                                    Cenvat Account           Dr.       (50%)
                                    Cenvat On-hold           Dr.       (50%)
                                    Cenvat Clearing                      Cr.
6. Check the Balance Credit Capital Asset T Code J2I8
Hope help u !
Regards,
Pardeep Malik

CIN : Capital goods reversal

Hi
Can someone give the steps for capital goods reversal process in CIN, with the transaction codes.
Regards,
R.Srinivas

see first u have to do cancellation of ur G R N doc in MIGO after that go to J1IEX here select POST & give vendor excise no. then press enter --> now in front of u a screen appears in which all details are displayed , now click on SIMULATE button on top , a small box appears in cenvat reversal is written for part1 & part 2 click on continue & then click on POST CENVAT Button.then u can check in T CODE = FB03 Ucan see that all ur J1IEX Entries i.e CIN entries are reversed , tell to Check in FI FOR T CODE FB03 .
reward for efforts.
sap11
Edited by: sap11 on Jan 24, 2008 10:49 AM

CENVAT CREDIT 100% TAKEN IN CASE AED ON CAPITAL GOODS INSTEAD OF 50%

Hi Experts,
This is with reference to the Cenvat Credit taken on Additional Excise Duty Payable on Capital Goods.
Presently in SAP 100% Cenvat Credit has been taken into 26010713 CENVT CAP GOOD (CAD) but as per law 50% Credit should be taken in the same year in which
Duty has been paid and balance 50% should be taken in next year.
The same treatment has been taken correctly in excise records.
And i want to know only for imported there has been any law change regarding 100% credit should be paid in same year.
Regards,
Manjax

Yes, this is std behaviour of the system,as per the law the AED will be allowed to take 100% credit in first finanacial year only.
For more information refer the below link.
http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442e6f?quicklink=index&overridelayout=true

Cenvat on Capital Goods Procurement (CIN)

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