Capital Goods Entry

As per the legal aspect , when the company buys a capital goods, 50% of the Cenvat amount can be utlized for the current year while the other 50% should be utlized in subsequent financial year. As per this scenoria , our client had taken only 50 % of Cenvat Amount in the last financial year , now they want to take the credit of unutlized credit for this financial year .
1. How to utilize the previous years Unutilized Credit Amount for the current year.
2. How the Unutilized amount is tracked in the Rax Payment Wizard .
Help me to sort out this issue . As this issue is very serious as the client had to run the tax payment wizard for the current month .
Thanks

Hi balaji jaganathan 
check this note
[India: No Credit shown in Tax Payment wizard]
[     1359068     ]
and also check you have set this
under Admin >> Setup >> Financial >> GL detemination >> Under Purchase TAB >> TAX > Capital goods on hold Percentage >> 50% (Give the percentage here)
Edited by: Prasanna s on Aug 6, 2009 1:47 PM

Similar Messages

  • 4 Entries for 1 purchase of capital goods

    Dear Gurus,
    I am Purchasing excisable Capital Goods ( Either from local or Import Vendor). In both cases in RG 23 c Part 1, register shows 4 entries for only one capital purchase. BUt in RG23part2, system is considering first entry out of 4 entries from RG23CPart 1.WHy it is like that ?.
    What is the CIN Rule for AED. is is 50 % this year  and 50% next year or full 100 % in current year in case of capital goods AED.
    Please Help.
    Thanx in advance.

    As per Std. rule u can take the ADC credit 100% in the Current year for Capital Goods.
    Biswajit

  • 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..

  • Entries missing in J2I8 Capital goods transfer of credit

    HI Experts,
    R23C part 11 register entries are not matching with J2I8 entries.Some entries found in RG23C part 11 Register are missing in J2I8 - Capital goods transfer of credit.What may the probem.
    Some entries found in J2I8 has to be deleted.Is it possible to delete entries in J2I8.If no, then how can it be removed from J2I8 list.
    The issue is very urgent.Can anybody throw some light on this issue.
    Thanks in advance
    Latha
    Edited by: swarna latha on Apr 15, 2010 11:12 AM
    Edited by: swarna latha on Apr 15, 2010 12:37 PM
    Edited by: swarna latha on Apr 15, 2010 1:19 PM
    Edited by: swarna latha on Apr 22, 2010 12:29 PM
    Edited by: swarna latha on Apr 27, 2010 1:25 PM

    Hi Manoj,
    Thanks for your response.
    This is the first time i am using J2I8 T code for transfer of credit.
    The particular SAP note has not been applied so far.
    I will apply the same and if any problem existing, will let you know.
    Thanks
    Regards
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  • Excice invoice captured as capital goods, but material is raw material

    All SAP Gurus,
    We have wrongly captured (and posted) the excise invoice as Capital goods (RG 23C), but material is Raw material (RG 23A).
    Material document can not be reversed as material is already issued and consumed for production activities.
    To get the effect in Rg 23 A, we have passed the Excise JV (J1IH - Other Adj.).
    Due to this Excise JV, we are getting entry in RG 23A, but the same entry is also displayed in RG 23C.
    Is there a way to delete/remove/reverse this entry from RG 23C.
    Please suggest,
    Regards,

    Hi,
    Use following functions to adjust the duties in RG23A and RG23C;
    Go to J1IH - Excise JV
    Use following method to reduce duties from RG23C Accounts
    Making Adjustment Postings for Other Transactions
    Use: - You follow this procedure if you want to make an adjustment posting that does not fall into any of the other categories of adjustment offered by this function. You can only use an external document as your reference document.
    Procedure: -
    1. J1IH > Excise JV > Other adj.
    2. Enter data as required, including:
    u2022 Document number
    Enter the number of the external document that you want to refer to.
    u2022 CENVAT account selection group box
    Specify which account is affected by the adjustment posting is for. Here in your case select RG23C.
    3. Click on u201CEnteru201D button.
    The system displays the information from the material document.
    4. Adjust the posting date as necessary and enter Vendor code as per requirement.
    5. Enter the amount of excise duty in either of the following ways:
    u2022 To enter line items for different materials and the excise duty accordingly, choose u201CDetailsu201D button and enter the line items in the table.
    Here fill details like Material Code, Quantity as per Excise Invoice, Batch No, Reference (i.e. GRN Document), BED and Ed Cess Amount manually.
    If you want system to propose the BED and Ed Cess Amount, Click on u201CGet Excise Invoiceu201D button and select the proper Excise Invoice from which the proportionate amount is to be copied.
    Select the u201CExcise Invoiceu201D and click on u201CContinueu201D button.
    It will copy BED and Ed Cess and SECess amount as per the quantity mentioned here. It will be proposed in proportion of selected Excise Invoice quantity and value.
    u2022 To enter the excise duty only, choose u201CHeaderu201D button and enter the excise duty in the totals fields at the foot of the screen.
    6. Specify which G/L accounts are to be posted to.
    7. Save the adjustment posting.
    System will post Excise JV Document; Accounting Document with Part2 Serial No has been successfully created.
    Use following method to take duty credit in RG23A Accounts
    Making Adjustment Postings for Additional Excise Paid by Vendors
    Use: - You follow this procedure if a vendor has increased the amount of excise duty that it originally charged you and you want to debit the difference to your CENVAT account.
    Procedure: -
    1. J1IH > Excise JV > Additional excise.
    2. Enter data as required.
    In the Document number field, enter then number of the document sent to you by the vendor.
    u2022 CENVAT account selection group box
    Specify which account is affected by the adjustment posting is for. Here in your case select RG23A.
    3. Click on u201CEnteru201D button.
    4. Adjust the posting date as necessary and Enter Vendor Name.
    5. Enter the amount of excise duty in either of the following ways:
    u2022 To enter line items for different materials and the excise duty accordingly, choose u201CDetailsu201D button and enter the line items in the table.
    Here Enter Material code, quantity as per excise invoice, reference document (i.e. GRN Document), batch no., BED and Ed Cess Amount to be posted.
    u2022 To enter the excise duty only, choose u201CHeaderu201D button and enter the excise duty in the totals fields at the foot of the screen.
    6. If the duty qualifies as countervailing duty (CVD):
    a. Select CVD applicable.
    b. Enter the CVD amount in the BED amount field.
    7. Specify which G/L accounts are to be posted to.
    8. Save the adjustment posting.
    System will post Excise JV Document; Accounting Document with Part2 Serial No has been successfully created.
    Then do J2I5 - Extract and J2I6 - Print Excise Registers

  • Commercial rounding for capital goods

    Commercial rounding off of all duties
    All the Duties are rounded up in PO & MIGO with some routing development through ABAP.
    Now client requirement is that in case of capital goods
    1.     If suppose that in Capital Goods Cenvat is Rs. 45.00, in same year only 50% credit is available hence Rs. 22.50 i.e. after rounding off it is available to us 23.00 and in on hold account only Rs. 22.00 should be available, but present SAP system does not propose the same
    2.     If Value of Secondary Education Cess is Rs.1/- for capital goods then credit available in current year should be Rs.1/- & on hold account it should be Zero
    Business is saying that it is statutory requirement as per Govt. Notification
    How much Govt is firm on this rule & how other companies are achieving this using SAP?
    Another Question is that While reversing CENVAT credit taken for capital goods without rejecting material (Only Duty reversal because credit wrongly taken)
    We have to pass Excise JV through J1iH & reverse 100 % duty. STD procedure is that   we have to transfer 50 % duty from Hold account to the RG23 C part 2 then reverse 100 % duty
    But business is saying that it is wrong practice & against excise law .In this case  how to handle CENVAT on Hold Account.
    ( I have Already used OB90 & routing Number 17 is working fine but not for above case )
    Thanks
    Edited by: sachin patil on Mar 10, 2009 7:00 AM

    Dear sachin ,
    As far as I see, there is no loss to the company,
    1. you paid the vendor for the full excise amount
    2. As a manufacturing unit you are liable to take 100% credit
    3. IF you classify the material as capital goods as per your needs then take 50% now and 50% in next financial year
    4. If Raw material take 100% credit
    5. If the material  has been mistakenly classified as C and first 50% credit availed, then  to correct your operations you will have to take second 50% from J1IH then in that case you will have to clear all credit on hold from your original 50% credit entry & the J1IH entry, hence you will end up taking 100% credit.
    In such conditions you can also opt for credit reversal through J1IH against the said part2 entry, & thenj create a fresh ID declaring material as raw material  & take fresh 100% credit.Here also that second 50% from the on hold account would be required to be cleared.
    Hope this helps,
    Regards,
    Akhileshwar K

  • CAPITAL GOODS credit.

    Dear all,
    A capital goods is sent to subcontractor for some Job work , it does not come within 180 days , resulting the duty is debited as per rule in transaction code J1IH . subsiquently the goods are received back. Now  while making the JV to re credit the debited amount in J1IH the system by default credits 50% amount(since it is a capital goods) instead of 100% as this is not the purchase for the first time. (here the challans are maintained manually )What should be done to post the entry by 100% in this scenerio ?
    Regards,
    Ashish

    Hi,
    I did not understand the question fully, but still would try to answer it.
    You say that the remaining credit of 50% was not taken in the opening balance. Does that mean that you want to take it over now?
    If yes, then the procedure is like this:
    Lets say that there is a credit of Rs.50 to be taken over to SAP. To pass this entry, you have to use the transaction J1IH - Additional excise tab (RG23C)
    here fill the details and pass the entry for exactly the double of the credit to be taken. In this example, pass an entry for 100.
    This ensures that Rs.50 goes to the Cenvat of hold account and the remaining Rs.50 goes to the normal excise accounts. This amount of the second Rs.50 is not required and so we have to reverse it using J1IH - Other Adj (RG23A).
    With that you would have the opening balance of the Cenvat of hold in SAP and then you can utilize it.
    If you say that you do not want to upload the opening balance and still want to take credit of the remaining 50%, then I feel that there is something fundamentally wrong in the upload of the opening balances as the opeining balance sheet would not tally.
    Hope that answers your question
    Thanks and Regards
    Venkatesh A K

  • 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.

  • Posting of cenvat credit of 50% on capital goods through T.Code:J1IH

    Hi
    Please advise me the procedure for posting of cenvat credit of 50% on capital goods through T.Code:J1IH.
    As a matter of fact, when i tried to post the last year credit of 50% cenvat credit on capital goods the system accepting 50% only.
    For example, last year we got Rs.200000 as cenvat credit and out of that 50% credit of Rs.100000 got availed last year. In this year when i tried to avail of remaining of Rs.100000 through transaction code J1IH system is accepting 50% of Rs.100000 i.e only Rs.50000 is accepting.
    I look forward for your reply
    Thanks and Best Regards
    Shekhar
    Edited by: Shekhar Yecham on Sep 16, 2008 8:54 PM

    Hello,
    The settings before 01.04.2010 were same.  However, after thorough checking of the GL A/cs, I have following observations -
    1) Plant 1 - Balance as on 31.03.2010 in Cenvat on Hold A/c -Rs. 195080. It is upload balance & t.code used is FBVB
        There are some more transctions in this A/c which are  reversed due to wrong entries.
        Balance in Excise Duty RG 23 C as on 31.03.2010 - NIL
    2) Plant 2 - Balance in Cenvat on Hold A/c as on 31.03.2010 is  Rs. 166701. Again this is an upload balance with FBVB
        Balance in Excise Duty RG 23 C as on 31.03.2010 - Rs. 56931.62
    3) Plant 3 -  No upload balance.  All the transactions are routed through J1IEX except 1 from FB01
        Balance as on 31.03.2010 - Cenvat On Hold A/c - Rs. 86876.06
                                                     ED RG 23C  - NIL
    Hence, would like to know -
    1) Any separate procedure to take the credit of upload entries?
    2) If the Balance in ED RG 23C A/c is NIL, will it affect on taking credit?
    Thanks & Regards,
    Reshma

  • 50% credit on capital goods for previous year is not availed

    Dear All,
    The go-live date for my client was 01.10.2009. Now, in Apr, 2010 when the client is trying to get the 50% credit on Capital Goods (t. Code j2i8),  system is not generating any data of the previous year. (From Oct, 09 to Mar'10).  However, if we see the GL Balace for 'Cenvat On Hold A/c' as on 31.03.2010, it shows a  balance of Rs. 2.50 lakhs approximately.
    Can you please tell me why system is not showing any details through j2i8 for previous year?
    Thanks & Regards,
    Reshma

    Hello,
    The settings before 01.04.2010 were same.  However, after thorough checking of the GL A/cs, I have following observations -
    1) Plant 1 - Balance as on 31.03.2010 in Cenvat on Hold A/c -Rs. 195080. It is upload balance & t.code used is FBVB
        There are some more transctions in this A/c which are  reversed due to wrong entries.
        Balance in Excise Duty RG 23 C as on 31.03.2010 - NIL
    2) Plant 2 - Balance in Cenvat on Hold A/c as on 31.03.2010 is  Rs. 166701. Again this is an upload balance with FBVB
        Balance in Excise Duty RG 23 C as on 31.03.2010 - Rs. 56931.62
    3) Plant 3 -  No upload balance.  All the transactions are routed through J1IEX except 1 from FB01
        Balance as on 31.03.2010 - Cenvat On Hold A/c - Rs. 86876.06
                                                     ED RG 23C  - NIL
    Hence, would like to know -
    1) Any separate procedure to take the credit of upload entries?
    2) If the Balance in ED RG 23C A/c is NIL, will it affect on taking credit?
    Thanks & Regards,
    Reshma

  • ED Configuration for Capital goods

    Hi Gurus,
    I have a problem in calculation of Excise duty with respect to capital goods.
    Our client wants to Create a new tax code ......though which they can claim the .....Input of 50%  Excise duty this year and 50% next year,( for that he want to update two different GL accounts for these percentages)  and 4% VAT on it.
    EX:
    The new tax code for 12.36% of excise duty + 4% VAT, required in a single tax code. (This 12.36% ED -- 50% this year and 50% next yr)
      Required for the following scenario
    Suppose Base AMC valve is          Rs.10000/-
    12.36% of Excise duty which is     Rs.1236/-
    4% of vat on Rs.11236/- which is    Rs.898.88/-
    Total amount including taxes Rs.10000 + 1236 + 898.88 = 12134.88
    As the client is not using CIN, how to configure this scenario.  We are on ECC 6.0
    Thanks in adv,
    Sri SAP

    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

  • ED configuratin for Capital goods

    I have a problem in calculation of Excise duty with respect to capital goods.
    Our client wants to Create a new tax code ......though which they can claim the .....Input of 50%  Excise duty this year and 50% next year,( for that he want to update two different GL accounts for these percentages)  and 4% VAT on it.
    EX:
    The new tax code for 12.36% of excise duty + 4% VAT, required in a single tax code. (This 12.36% ED -- 50% this year and 50% next yr)
      Required for the following scenario
    Suppose Base AMC valve is          Rs.10000/-
    12.36% of Excise duty which is     Rs.1236/-
    4% of vat on Rs.11236/- which is    Rs.898.88/-
    Total amount including taxes Rs.10000 + 1236 + 898.88 = 12134.88
    As the client is not using CIN, how to configure this scenario.  We are on ECC 6.0
    Thanks in adv, points assured.,
    Sri

    Hi,
    There is no defined process for returning capital goods.
    While making the Incoming excise invoice Purchase tax accounts defined in tax code and On Hold account defined in GL Account determination will be debited for the 50% value.
    While returning the same,in Outgoing excise invoice, sales tax accounts defined in tax code will be credited for the whole value.
    After doing this, An adjustment journal entry need to be passed by crediting the On hold account and debiting the sales tax accounts defined in tax codes for only the 50% excise value.
    By doing so our input and output for excise booking will balance.
    Hope you got my view in it.
    Regards
    Ravindran Srinivasan.

  • 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
    regards
    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'
    you will get entries in RG23C part 2 register.

  • Goods Return for Capital Goods

    Dear Experts,
    I need correct SAP Process for the below scenario :
    GRPO for Capital goods has been raised.
    Incoming excise Invoice for the GRPO has been booked. While booking Incoming excise invoice, 50% of the Excise duties will be posted to Capital Goods On hold account defined in the GL Account determination.
    Now due to some reasons i am raising Goods return for the GRPO raised earlier for the Capital Goods.
    Then i am booking the Outgoing excise Invoice. But in the Outgoing excise invoice the 50% Of the excise duties posted to the on hold account is not reversed.
    In outgoing excise Invoice,Only sales accounts defined in tax code will be credited and CENVAT Clearing account will be debited.
    How to reverse the 50% Excise duties got posted in the On hold Account ?
    Kindly mail some Valuable suggestions
    Regards
    New Age Bizsoft Solutions

    Hi,
    There is no defined process for returning capital goods.
    While making the Incoming excise invoice Purchase tax accounts defined in tax code and On Hold account defined in GL Account determination will be debited for the 50% value.
    While returning the same,in Outgoing excise invoice, sales tax accounts defined in tax code will be credited for the whole value.
    After doing this, An adjustment journal entry need to be passed by crediting the On hold account and debiting the sales tax accounts defined in tax codes for only the 50% excise value.
    By doing so our input and output for excise booking will balance.
    Hope you got my view in it.
    Regards
    Ravindran Srinivasan.

  • 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.

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