Capital PO SH Cess

Dear Guru's
Pls Suggest me, In my client place user raised capital PO, MIGO and Excise invoice, now MIRO doc posting, here the problem is only SH cess is coming 0.5% , in Excise document for capital assest we are capturing 50% this year and 50% next year (Cenvat on hold a/c). there BED, Ecess , SHcess 50%.
in MIRO 100% means for example (8%, 2%, 1%) invoice is we are doing this is the regular process. right?
but in my case (8%, 2%, 0.5% it is calculating) , where is the problem
Pls suggest me
Regards
chandu

Thanks for ur Reply, i checked in J1id and Tax code, condition all, all places 1% is there
we are using TAXINJ, from wher it is picking this 0.5% Means ,, in excise we are spliting 50% all,
but miro 100% , i am thinking it is pricking from exicise. but BED , Ecess is coming correct.
Regards
chandu

Similar Messages

50% Cess on hold for capital goods

Hi Gurus,
I have configured the CIN. The system is calculating the CESS & H CESS correctly.
But for the Capital Goods, it is transferring only 50% of the BED to on hold account. It is not transferring the 50% of CESS & H CESS to on hold acount.
Can anybody help me in sorting out this issue?
Thanks in Advance.
Regards,
Amit

Answered

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

Problem in new 1% higher education cess as per budget 07

Hi,
we have done the configuration for the new 1% higher education cess in SAP.we have uploaded the relevant patches, done the required manuel changes, also completed the changes in MM and SD module.All the changes were done as per SAP notes.But still we are getting an error "<b>balance in transaction currency</b>" while posting excise invoice in J1IEX in MM and same error in SD also.
The problem is when i do simulation of excise invoice in J1IEX the new cess is not displayed as a line item, but its value is included in the total which is credited in the CENVAT clearing account.
can u guys help me out on this??
thanks in advance,
akshay

as per as i know this happens in case of capital goods with non inventorised excise duty since 50% refund is possible in current financial year,next 50% in next financial year. suppose for example
bed is calculated on gross price of a capital goods as 1200.25 inr
so while posting the excise invoice the system break it as 600.13 inr one on clearing account and another onhold. so .01 price differance exist in account document and system not allowing to post it. so u click on the error "balance in transaction currency" to no the differance and make appropriate change manually in j1iex_c to balance the account document properly since .01 rs has no effect on the system
thanks
atanu

Credit of Add Custom Duty in capital purchases at the time of J1iex

Hello,
As you all are aware that Indian law allows taking the 100 % credit of additional customs duty in case of capital procurement and only 50 % credit of CVD, Cess on CVD and S Ces s on CVD at the time of J1iex in first year itself
We are facing the problem in PRD client that, we are not able to take the 100 % credit of Additional Customs duty at the time of posting the J1iex. System considering only 50 % for all duties.
I have tried the same scnerio in development client and observed that it is working ok there.
Request you all to give your inputs on the above.
Thanks,
Vikas Rander

Check this answered links [import capital AED 50 % |Re: import capital AED 50 %;
[Capital Procurement in SAP|http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442e6f?quicklink=index&overridelayout=true]

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

100% Sad for first year on Capital Excise

Hi ,
            I hope all are very well, i have one issue please guide me or plese share your views
1.In case of Capital goods, as per excise rules cenvat credit of excise ( CVD ) 10% plus cess 3% can only be availed to the extent of 50% in current year. And in case of SAD 4% It can be availed full 100%. Presently while doing J1IEX ( cenvat availment ) system is taking 50% in all cases, even in SAD also.
Regards
Srinivas

hi sir
      thank you for your prompt responce, i have all ready configerd such settings againest ETT.in the above path.
here my question:
when i post a excise Jv the entry is like as follows
41706-bed a/c on hold 17390.dr
41704-capital-hse cess 118.dr
41701-capital cenvat bed 11804.dr
41703-capital- ecess 236. Dr
41702-capital SEd 5232 dr
       To Cenvat Clearing a/c 29549.
But My client wants capital SED is FUll (100%) means 10464 rs.
The entry like follows
41706-bed a/c on hold 12158.dr
41704-capital-hse cess 118.dr
41701-capital cenvat bed 11804.dr
41703-capital- ecess 236. Dr
41702-capital SEd 10646 Dr
       To Cenvat Clearing a/c 29549.
please guide me what i need to configer for this.
regards
Srinivasa Reddy

At the time of doing posting in Cess it is not taking one account

Ptoblem is when I am trying to do Internal excise invoicing in J1IEX
at the time of posting system is not picking secondary educational TAX
G/L in RG23C (capital goods A/C) at the same time it is properly
working on RG23A A/c can you tell me where is the setting for it I
also check out this setting Specify G/L account.
Path :
checked in logistic General Tax On goods Movement  India Account
Determination  specify G/l Account.
G/L Account Description         Dr/Cr     Amount
60104        CENVAT on Hold-SMR   Debit              164.80
60172        RG23C Edu Cess-SMR Debit               3.20
60170        RG23C-SMR                 Debit               160.00
60166        Modvat Clg. Acct-SMR Credit               329.60
Ashish

answered

GRPO instead of CAPE in case of capital goods purchase

Hi,
I have configured the capital goods purchase with excise. Which transaction type is to be captured .. GRPO or CAPE.
At present GRPO is captured..
I have used a material 'ASSET' just for reference and in J1ID it is assigned to a chapter ID, then maintained as input material.
and just used it.
If CAPE is correct method,.. how to achieve this..
Sujith

Hi All,
The asset cost is 10000
Excise :
BED 10%       1000
ECS 2%         20
SECS 1%       10
VAT 4+1
Is the following correct:
1. MIGO for asset : 'No excise invoice' chosen / No accounting document generated.
2. No J1IEX
3. MIRO following a/c entries occurs
Vendor                                                                11,475.61-
BUILDINGS                                                                           11,030.00
INPUT TAX RECOVERIES CAPITAL GOODS - VAT @ 4%     441.20
SS CESS @ 1% ON INPUT TAX RECOVERIES          4.41
It seems correct .. Thanks everyone ..
Thanks
Sujith
Edited by: Sujithbk on Oct 19, 2011 9:54 AM

Partial cenvat taken for import procuremnet of capital goods

Hi,
My client has procured the 7 machines from china.but he wants to take cenvat only for two machines and want that duty of another five machine will be loaded on asset cost.
Kindly suggest, how i will do it.
Regards,
Dinesh
9953460025

Hi,
You can try to create two line items in the PO with Qty 2 & 5 each.
Your Import pricing procedure should contain two sets of CVD condition types: one set is cenvatable and the other non-cenvatable. Eg: JCV1> CVD Condition type (Cenvatable), ZCV1>CVD Condition type (Non-Cenvatable).
Assign cenvatable CVD condition type in your "Maintain Excise Defaults" IMG node.
For the first line item in PO with 2 Qty use the CVD condition types(CVD, Edu.cess on CVD, SeCess on CVD & ADC) which are cenvatable in nature and for the second line item use CVD condition types which non-cenvatable. Post the GR's separately so that you can separately capture the excise invoice for first line item with Sub-transaction type IP.
Alternative solution:
If a separate set on non-cenvatable conditions are to be avoided, create the PO single line item with 7 Qty. Capture the entire duty as cenvatable. In case of Capital item procurement, the company is eligible to avail only 50% of the total excise duty credit i.e., 50% of the credit is posted to RG23C Part II G/L account and the rest 50% will be posted to Cenvat onhold account.
In your case, this 50% which is posted to Cenvat onhold account has to be immediately transferred to RG23C Part II account using T.Code J2I8 and then an excise JV can be posted to reverse the excise duty from RG23C Part II account using T.Code J1IH.
Try and let me know if it works.
Regards
Guru
9620944466

Import capital po Seces dont come

1) craeted capital import PO
2) Made MIRO for customes
3) then capture customes by J1IEX. When capture Seces that shows u2018zerou201D BED, AED SED gets update
How to bring the Seces line
please help

Hi,
Please maittain the at1tab in
spro->img->Logistics - General->Tax on Goods Movements->India->Basic Settings->Maintain Excise Registrations
in that please tick the liable to cess,liable to at1 .
spro->img->Logistics - General->Tax on Goods Movements->India->Basic settings->Determination of Excise Duty->maintain the excise defaults
both are to be maintain and save.
Thanking you.

Capture, the AED is taking 100% value instead of 50% Import capital purchas

Hi,
Im doing Import po process for capital purchase, when I'm doing migo with excise invoice capture, the AED is taking 100% value instead of 50% , for the remaing its taking 50% only i.e BED, Ecess, Se cess.
So, can anyone tell me, how to rectify the issue???
Please guide me any config.
Thanks
Shital

manufacturer is entitled for 100 % AED set off in the same year for capital goods

AED taking 100% in capital purchase

HI,
Im doing Import po process for capital purchase, when i'm doing migo with excise invoce capture, the AED is taking 100% value instead of 50% , for the remaing its taking 50% only i.e BED, Ecess, Se cess.
So, can anyone tell me, how to rectify the issue???

Hi Kunal,
FI guys wont tell anything.
If any business expert will tell you that 100% of ADC in case of capital items need to be taken credit in the current year itself.
regards
prasad

Settings for 50% claimable is maintained for Basic, Cess, Edu Cess and Add

Hi,
Can you tell me where the settings for captial goode 50% claimable is maintained for Basic, Cess, Edu Cess and Additional duty.
Regards
VR

Hi Manish
for Capital Goods Procurement,
first the material and chapter id has to be maintain and with that material code it should be decalred for Assets.
Customization in SPRO for maintaine specify Excise accounts per Excise TT as.........
when ever you capture the excise for capital goods the RG23C Register type is updated for Capital Goods showing the 50 % excise can be avail for present financial year and 50 % next financial.
The Excise Posting Entries must be like
                                    Cenvat Account           Dr.       (50%)
                                    Cenvat On-hold           Dr.       (50%)
                                    Cenvat Clearing                      Cr.
You can check the balance avail in T Code J2I8
Pls refer the below link also it may help you much better...........
http://help.sap.com/bp_bblibrary/500/Documentation/J84_BB_ConfigGuide_EN_IN.doc
Regards,
patil

Capital PO SH Cess

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