Capital Goods(Asset) Procurement

Hi all,
I have a scenario where company is procuring an asset and the vendor from which the company is procuring the Asset is sending that Asset in different parts like for a whole machinery the vendor is dismantling at its end and then assemble inside the client premisis but sending in different shipements
Now requirement is In the PO there is only one line item with Asset code, GR is to be done for all the Dismantled parts and for that parts material master is not maintained, on some of the dismantled parts excise entry is required.
When is Asset is assembled i have to show the GR entry for complete asset and have to update my RG23C register for both Part1 and Part2 entry.
How to map such a scenario??
Regards
Akshit

Dear ,
I feel u want to take the Credit for the Parts material.
In J1IEX use the option without PO & take the credit.
In this u don't ahve to create the material code,by using material Description of u can take the credit.
Pi. use this .
Biswajit

Similar Messages

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'.

Capital goods purchase and return

Hi Sap guys,
Can anybody give me the steps of purchasing the capital goods and return of the same.Also give me the steps of debit and credit of cenvat
Best Regards.
Sandeep

List of Transaction Codes for Purchase of Capital Goods: -
1. ME21N u2013 Create Purchase Order (Acct assmt cat. - "A")
2. MIGO u2013 Goods Receipt against PO
3. J1IEX u2013 Post Excise Invoice
4. MIRO u2013 Enter Vendor Invoice
1. At the time of Goods Receipt of Capital Goods, Asset Account will get debited and GR/IR Clearing Account will get credited.
2. After posting the excise invoice that contains capital goods, the system posts half of the excise duty to u201CCENVAT Receivable accountu201D (Dr) and post the rest to a temporary offset A/c u201CCENVAT on holdu201D (Dr) and Credit CENVAT Clearing Account.
3. At the time of Invoice Verification, Vendor Account will get credited and Clearing Accounts (GR/IR and CENVAT) & VAT Accounts (if required) will get debited.
Vendor Return cycle of Capital Goods: -
1. MR8M - Cancel Vendor Invoice (If Payment is not done)
2. MIGO - Cancellation > Material Doc (GR Doc)
3. J1IEX - Post > Vendor Excise Invoice
4. J1IEX - Cancel > Vendor Excise Invoice
4. MIRO - Credit Memo to Vendor (If Payment is done)
1. At the time of Goods Return of Capital Goods, Asset Account will get credited and GR/IR Clearing Account will get debited.
2. After posting the excise invoice cancellation that contains capital goods, the system posts half of the excise duty to u201CCENVAT Receivable accountu201D (Cr) and post the rest to a temporary offset A/c u201CCENVAT on holdu201D (Cr) and debit CENVAT Clearing Account.
3. At the time of Invoice cancellation, Vendor Account will get debited and Clearing Accounts (GR/IR and CENVAT) & VAT Accounts (if required) will get credited.
In short Reverse all the entries
You can not show Return cycle as in case of RM since stock of Capital Goods are naot maintained.

Stock Transfer of Capital goods(capex,assets)

Dear SAP Gurus,
How to do the stock transfer of the Capex material, as during the procurement of the capital goods, it got procured by using the short descriptioin without material master and with the PO account assignment category "ASSET" , and while doing the GRN , no stock lies in the storage location ,
Now the Requierement is to stock transfer the Asset from one plant to the another plant. using hte stock transfer order,
How to do this.
As per as finance point of view is concerned , they will do the Asset to Asset Transfer , but from teh logistics point of view, how to achieve it.
Thanks & Regards
Nitin Chhabra

Dear ,
Please follow this link to get detail informatiom about Capital material handling.
http://help.sap.com/saphelp_47x200/helpdata/en/09/ebf138cdd78a4be10000000a114084/frameset.htm
Check Capital Goods under material management
Hope it helps
Abhijit

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..

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

Procurement cycle of capital goods

all gurus,
can u pls let me know how to procure and take part 2 entries of capital goods
thanking
ujwal

Hi,
Procurement Cycle of Capital Goods: -
Domestic Purchase of Capital Goods: -
1. ME21N u2013 Create Purchase Order
2. ME2N u2013 List of Purchase Orders
3. MIGO u2013 Goods Receipt against PO
4. J1IEX u2013 Post Excise Invoice
5. J1I7 u2013 List of Excise Documents
6. MMBE u2013 Stock Overview
7. MB51 u2013 List of Material Documents
8. MIRO u2013 Enter Vendor Invoice
9. MIR5 u2013 List of Invoice Documents
Import Purchase of Capital Goods: -
1. ME21N u2013 Create Purchase Order
2. ME2N u2013 List of Purchase Orders
3. MIRO u2013 Enter Customs Invoice
4. J1IEX u2013 Capture Bill of Entry
5. MIGO u2013 Goods Receipt against PO
6. J1IEX u2013 Post Bill of Entry
7. J1I7 u2013 List of Excise Documents
8. MMBE u2013 Stock Overview
9. MB51 u2013 List of Material Documents
10. MIRO u2013 Enter Vendor Invoice
11. MIRO u2013 Enter Clearing Agentu2019s Invoice
12. MIR5 u2013 List of Invoice Documents
Note: - This includes Reports along with Transactions.

Asset Procurement & Asset Goods Movement

Dear Experts,
Please Explain the Asset Procurement Scenario in details.
1] Asset Material type - whether it should be copied from Raw Material type or Directly Raw Material type
                                   can be used and what about quantity and value update check box
2] Purchase Order - PO creation with account assignment category A and the Asset number of the asset
                             material.
3] Goods Receipt - GR for Asset Purchase Order. Asset material will be posted directly to Consumption?
                            whether Accounting document will be posted? How the inventory of Asset material will
                            be managed?
4] Goods Issue - How to manage goods issue or withdrawal of Asset material? after goods receipt
5] Invoice verification for Asset Purchase Order?
Thanks in Advance

Hi,
1)   Asset Material type: You can use the non-valuated material type or normal valuated material type (subject to how you are going to manage your stock as per your inventory management strategy).
2)   Purchase Order: The PO shall be raised with the "A" Account Assignment Category where the Asset No, Internal Order number shall be entered.
3)   Goods Receipt - Upon GR posting, subject to how your material type is defined, it can either increase your stock quantity (in case of non-valuated material type) or for direct consumption. This GR posting will generate the accounting document in background automatically.
4)   Goods Issue - It is very much again subject to how your material type is defined. If it is set as non-valuated material type, then you can make further goods issue after GR. Otherwise, no goods issue is required as the items are to be consumed directly upon GR posting.
5)   Invoice receipt - The LIV process will be used in this particular case.
Cheers,
HT

Can i enter both asset number as well as capital goods number

Dear All,
can i enter both asset number (acc assignmnt A)and capital goods number ( material type UNBW) while creating PO.
why becasuse my client wants to track all his capital goods in invetroy and he want to tranfer from one plant to another ( our's is a construction company).
where as we are ubable to transfer assets from one plant to another where friegt cost includes..
how to hande this
Regards
venu gopal

Rahim thank you for your reply
but our's is construction company where our assets ( i.e capital goods) will move from one site to another i.e plant to plant..where freght cost also comes into picture. i i use asset master while transfering the asset from plant to another where can i book my expenses....i want to see the inventory i mean where is this asset which location and alll......
Regards
venu gopal

AED Posting for Capital Goods

Hi
For Capital Goods, excise availed will be 50% for this financial year and 50% for next financial year. Is it applicable for AED/CVD for imported goods also.
Rgds
Srini

Businesses are allowed to set off excise duty on purchases of capital goods against excise duty on outputs. However, unlike with raw materials, you can only set off half of the duty in the first year, and the rest in any year after that.
Prerequisites
In the material master, you have classified the capital goods as such.
Because duty on capital goods is handled using excise transaction type CAPE, you must also have specified that you want this transaction to credit the excise duty to the CENVAT on hold account. You make this setting in Customizing for Logistics u2013 General, by choosing Taxes on Goods Movements ® India ® Account Determination ® Specify Excise Accounts Per Excise Transaction.
You must then have specified which G/L account is the CENVAT on hold account, again in Customizing for Logistics u2013 General, by choosing Taxes on Goods Movements ® India ® Account Determination ® Specify G/L Accounts per Excise Transaction.
Features
When you post an excise invoice that contains capital goods, the system posts half of the excise duty to your CENVAT account and posts the rest to a G/L account for CENVAT on hold.
In following years, you can use a report to identify the capital goods with excise duty on hold and transfer the duty to the CENVAT account (see Transfer of CENVAT Credit on Capital Goods).
Activities
When working with excise invoices that include capital goods, note the following:
Capturing vendor excise invoices
When you create an excise invoice with capital goods, you have to set the material type to A (assets), C (consumables), or T (tools).
Posting excise invoices
When you come to post the excise invoice, the system posts only half of the excise duty to the CENVAT account. The system does not round the amount off.
Transfer of CENVAT Credit on Capital Goods
You use this report to display a list of the vendor excise invoices where the vendor has levied excise duty but you have not posted it (in full) to your CENVAT account.
This is particularly useful in the case of capital goods, in order to find out how much credit remains from previous years.
Features
To access the report, from the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® Reports ® Balance Credit for Capital Goods.
Selection
On the selection screen, enter:
Organizational data
Data of the documents that you want
Output
The system displays a list of excise invoices with excise duty outstanding. It shows you:
The total amounts of the various types of excise duties levied on the excise invoice
How much duty has still to be posted to the CENVAT account
Select the excise invoices that you want and choose Transfer credit. If you want to transfer only a portion of the remaining amount, enter this amount as the amount to be credited.
The system creates an accounting document to post the duty to the CENVAT account and creates an entry in the Part II register.
Regards'
eswarmanu...

Asset Procurement Assignment Logic

Dear SAP Gurus,
We have one material, when we procure this particular material, In MIGO it will automatically take "C" type register which is for capital goods. Following area I already checked in my system
1. In J1ID it is assigned to TOOLS
2. There is no use of Account Assignment Category in PR & PO
3. There is no assignment in Material Master as for Asset.
So my query is how system recognizes that it is asset and the entries should go in C type register.
Thanks
Prateek

Here is the classification for Excise registers.
If you choose Raw Material in Material & Chapter Id combination, it will hit RG23A register.
If you choose Tools / Assets / Consumables in Material & Chapter Id combination, it will hit RG23C register.
If you choose Finished Goods in Material & Chapter Id combination, it will hit RG1 register.
Register Type
J1ID Material type
RG23A
Raw Materials
RG23C
Consumables
Tools
Assets
RG1
Finished Goods

Error in J2I8 -Transfer of capital goods credit

Hi,
I want to transfer the capital goods credit, In J2I8 , I have select the check box of vendor invoice numner then when i click on transfer credit, system is giving error message as Please check the amount, how to solve problem.
regards,
zafar

hi,
Check on it:-
http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442e6f?quicklink=index&overridelayout=true
As per this flow it done..
Capital Procurement in SAP
Create a material master u2013 MM01
Create a Vendor master u2013 XK01
Create an Asset master u2013 AS01
Maintain Chapter id & Cenvat determination u2013 J1ID
Create a PR for a material with account assignment category A, ME51N (Optional)
Create a P.O. for vendor / Material with account assignment category A, asset number u2013 ME21N
Release of capital order (Optional) u2013 ME29N
Goods receipt & Capture the Excise invoice u2013 MIGO
Post the Excise invoice by using internal excise number u2013 J1IEX
Invoice verification for the asset purchased - MIRO
Transfer credit in the second year u2013 J2I8
Check the asset value u2013 AW01N
Transfer credit for balance excise amount
By using J1IEX T code first 50% cenvat credit shall be claimed. For claiming balance 50% cenvat credit in the second year, J2I8 T code shall be used.
Check on CIN Cinfig as well.
pherasath

Accounting Effect for Capital Goods Purchase

Hi,
Iam using SAP 8.8 PL 13. How does the accounting takes place in case of an Item marked as Fixed Asset in Item Master?
In GL account determination I have assigned Capital Cenvat Credit A/c. for Capital Goods on Hold A/c.
Suppose I purchase an Fixed Asset Item for Rs.10000/- from a Vendor who has also been assigned Asset A/c in BP Master. I have created separate tax code for capital goods. The tax code is BED 10 %.
In Incoming Excise Invoice I get the Following JE effect.
                                                           Debit               Credit
Capital Cenvat Credit -                      Rs.10
Capital Cenvat on Education Cess    Rs.10
Capital Cenvat Credit                         Rs.5
Capital Cenvat Credit on HS Cess     Rs.5
Capital Cenvat Credit                         Rs.500
Capital Cenvat Credit                         Rs.500
Incoming Cenvat Clearing A/c                                    Rs.1030
Can somebody explain how this works?
Rgds
Kalli
Edited by: Kallicharan Nadar on Aug 30, 2010 11:22 AM

Hi Kalli,
In Administration-> Setup-> Financials-> G/L Account Determination-> Purchaseing Tab-> Tax Sub Tab-> "Capital Goods On Hold Percentage set" - 50 % and set GL in "Capital Goods On Hold Account" once you done these setting. When you are going to make Incoming Excise Invoice transaction that time system is booking 50% excise amount in current year and remaining 50 % will book in next year and same for Cess and ShCess.
Cenvat credit on capital goods is allowed only when it is received in the factory. However, only 50% of the credit may be availed in the financial year when the capital goods are received in the factory and the balance 50% may be availed in any subsequent financial year, provided the capital goods are in the possession of the manufacturer. The Cenvat Credit Rules, 2004, do not impose any condition upon the manufacturer to avail of the credit only when the capital goods are put to use on the commissioning of the plant.
Refer...
http://www.cbec.gov.in/excise/cx-rules-main.htm
Thanks
Sachin

Excise reversal on Capital goods

I am facing a problem in Excise. The client has taken a wrong credit of asset in a dealers transaction.
MIGo Done
J1iex - Credit taken.
The client wants to reverse the transaction since the credit is taken more. 50% credit has gone to credit on hold.
We tried by reversing the 50% credit using J2I8 & then reverse the 100% credit taken in J1IH (Other Adjustment) & then take the credit in J1IH (Addational Excise) But at time of doing MIRO the Excise amt is the original amount of J1iex & system is not taking the new amt as taken in J1IH (Addational Excise).
Pls suggest how to reverse the original entry of excise & pass the entry for the correct amt of excise & also the same amount should appear at time of doing MIRO (For Capital Goods.)
Kindly revert...

Dear,
The reversal entry done by J2I8 and the adjustment entry done by J1IH would not impact the J1IEX document posted. Hence the MIRO would still be representing the values of the J1IEX posted values. The excise value can be adjusted in the inventory value in the MIRO line item or can be adjusted in the unplanned delivery cost under details tab in MIRO (depending on the sales tax/VAT implications).
Hope it works.

EXCISE ON CAPITAL GOODS

hi
    "for capital items 50% of excise duty is available for credit immediately ,50% in next financial year ,some time credit can be taken in same year IF
1 P O RETURN FOR OF CAPITAL
2 STOCK TRANSFER TO ANOTHER PLANT"
CAN ANY BODY EXPLAIN ME ABOVE SENIRO WITH EXAMPLE
WITH REGARDS
HARDIK
Edited by: hardik_khandelwal on Sep 17, 2010 1:32 PM

Hi,
for capital items 50% of excise duty is available for credit immediately , 50% in next financial year ,some time credit can be taken in same year IF
1 P O RETURN FOR OF CAPITAL
2 STOCK TRANSFER TO ANOTHER PLANT"
During MIGO u2013 Part I Posting
S- Debit     KBS
H-Credit     WRX     PL-Vnd-Mtl
During Excise Posting- Part II
S- Debit     CENVAT OH
S- Debit     CENVAT on CG-SEC
S- Debit     CENVAT on CG-BED
S- Debit S     CENVAT on CG-ECS
H-Credit     PL-Vnd-CENVAT
Transfer of credit for Capital Goods for next year u2013 J2I8
H-Credit     CENVAT OH
S- Debit S     CENVAT on CG-SEC
S- Debit S     CENVAT on CG-BED
S- Debit S     CENVAT on CG-ECS
Then you can send or sell the Asset in current finincial year but before that make sure that it has to retire in FI.

Capital Goods(Asset) Procurement

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