Capital goods sales.

Dear guru's
While selling the asset in commerical bill excise entry should be 100% recovery from customer.
When we do excise j1iin excise entry should be 50% let me know how to configure.

Hi,
check this SAP Notes 796169 which says:
Symptom
The Budget passed by the Minister of Finance for the Fiscal 2004-05 has introduced the utilization of credit of Service Tax against CENVAT and viceversa.
This note contains transportable requests of a New Monthly Utilization transaction J2IUN, which allows user to use service tax credit to pay Cenvat payable and viceversa.
Other terms
J2IUN, Cross Utilization, Service Tax, New Utilization Transaction,
Budget 2004, Education CESS
Reason and Prerequisites
Legal changes.
Prerequisites are user should have CIN installed and should have one Excise group and Plant settings.
U can use J2IUN for payment of Service Tax from Cenvat Cr.
Hope this will clarify your query
Regards,
Vijay

Similar Messages

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.

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.

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.

Process steps for Capital goods transfer from one exciseable plant to another exciseable plant

Please guide me about below mention process :
Capital goods transfer from one exciseable plant to another exciseable plant with updation of RG23C register.
Goods purchase in prev month.

Company code to company code u have to treat the another company as Vendor/Customer in each company code books. Then the process is same. Sale order, delivery and billing to the Customer(2nd company code i.e. stock receiving company code). Then in receiving company code based on the delivery document of other company code GR can be made. and IV.

Excise duty on capital goods 100% on hold....

Hi Experts-
In general cases when we do capital goods purchase, 50% tax we will pay and 50% tax will be on hold....my client requirement is 100% need to be hold....Pls guide me how can i fullfill that?
Pls provide T.codes alos...
The general entry should be like this....
Suppose TAX ON CAPITAL GOODS IS RS 20
RG 23C BED DR 10
CENVAT on hold DR 10
To CENVAT clearing a/c 20
But they want like this....
CENVAT on hold DR 20
To CENVAT Clearing a/c 20
Please give inputs...
Thanks
Chandu

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.

45 Challan for Capital goods

How to create 45 challan for capital goods without payment of excise duty.....for capital goods material...
Error in J1IF01 is
The mat. doc. does not have materials relevant for subcontracting...
Plz guide me on this....
Thanks in advance
Santosh

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.

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

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

AED for import purchase of capital goods.

Hi guys,
We are executing the import flow for capital goods.In this case we also have the AED for customs(4%) applicable.In case of AED for customs we can take credit of 100% in the 1st year itself even for capital goods.But the problem is that after GR takes place the GL for carry forward gets updated for the AED even though we are taking complete credit in the 1st year.Hence the creadit is being taken twice for the same amount.
PLease suggest any solutions for the above problem.
Thanks in advance,
Akshay

Hi
Please go through the SAP note on the same
Regards,
abhay

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

Sales Order Status "Being Processed" after completion for Free Goods Sales

Hello All,
This problem is related to Free Goods Sales which is as follows.
The process-flow for free goods sales is first we raise a sales order, then we do outbound delivery for the sales order and then finally PGI of the goods.We don't raise any invoice and the Free Goods Challan is issued to the customers by running a report.
The document flow at the end always show the Sales Order status as " Being Processed" and Outbound Delivery & PGI as "Completed".I want the system to show the Sales Order status as " Completed" and not " Being Processed".How to do that?
Please suggest some solutions.
Thanks & Regards
Priyanka Mitra

Hi Raja,
Thanks a lot for your prompt reply and suggestion.
Now we are able to get the Completed status in Document Flow.
Thanks & Regards
Priyanka Mitra
P.S. - I would request you to go through another problem which we are facing in Shipment , please go through this and suggest some solution regarding it if possible.
I have already posted this problem in a separate thread few days back but am yet to receive any fruitful suggestion.
The problem is regarding Shipment Cost Calculation while doing STO which is as follows -
In our scenario the Shipment cost calculation is done on two basis -
1) Absolute Rate / Flat Rate Wise - For example for transporting of goods from Kolkata Depot to Delhi Depot is Rs. 20,000 fixed.
2)) Gross Weight Wise - where the weight unit is kg and rate for example is Rs. 4 / Kg. So for 10 Kg the shipment cost will be Rs. 40.
Now I want the system to calculate the shipment cost on Rate / Carton Wise i.e. How will I be able to calculate the shipment cost of 100 cartons if the rate is Rs. 100/ Carton.
How to configure this ? Please help in this regard.

Inclusive free goods sale without item generation

Dear All,
I have done successfully free goods sale exclusive with item generation but facing problems with inclusive & inclusive without item generation, in VBN1 for NA00 I have maintained following.
material code - Min Qty - 5 - from - 10 PC - are free goods 1 PC- calc rule - 1
for inclusive and exclusive both in VA01 showing extra lines for freee goods (sale as exclusive)
I have searched at http://help.sap.com/saphelp_470/helpdata/en/06/629ee9fb9c11d199ee0000e8a5bd28/content.htm
here it is mentioned that -"In the free goods master record in the Free goods category field, select free goods category 3 (inclusive free goods without item generation)."
But I have not seeing any field in VBN1 t code where I can maintained free goods category as 3. Can anyone revert how I can maintained this free goods category for inclusive free goods without item generation.
regards,
sp shukla

In VBN2 Maintain (scroll right to get all field)
- calc. rule (Calculation type for determining free goods quantity) as 2(Unit reference).
FYI, Others are 1 - Pro rata & 3 - Whole units
- free goods category 3 - Inclusive rebate (w/o item generation; only for sales).
And coorespondingly maintain Free Goods delivery control.
Regards
JP

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

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 sales.

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