CENVAT postings and calculations.

Question

We maintain the tax code with the help of which system calculates the taxes on items.
In tax code we maintain the condition types for calculation  of taxes.How can i check how much amount has been paid as BED for example and other taxes on purchase of various items in a specific period.
Also how G/L accounts are assigned to various taxes or condition types.What is the significance of account keys in calculation schema?
Also how does sytem calculates the CENVAT amount( from where does the system get all information about calculation of CENVAT) and post it to the system.
Also in PO whether we have to mention the tax code everytime ,and is there any direct relation of tax code > material, taxcode> vendor

Answer 1

Hi Deepika
Here i am giving you snap shot of CIN in SAP first you understand following example
Suppose you have purchase raw material so for this whatever excise duty you have paid is recordinf Separately in the register named RG23A. Similarly in case of Capital its known as RG23C.
The only difference between them is that in case of RG23A full value of excise goes to regaister.Suppose on total value of PO 100rs you pay excise 16% i.e. 16 and education cess is 2% i.e. 0.32.
In this case RG23A will updated as follows at the time of MIGO
Excise Entries
RG23A BED 16.00
RG23A Ecess 0.32
Cenvate clearing account -16.32
Stock Enteries
Stock account 100
Gr/IR account -100
In case of capital only 50% of duty goes to the register rest of Excise amount goes to hold.If we take above example then following transaction happens
Excise entries
RG23C BED 8.00
RG23C Ecess 0.16
Cenvate on hold 8.16
Cenvat Clearing account -16.32
Stock Entries
Stock account 100
Gr/IR account -100
After one year of this excise transaction on hold amount of capital goods can be transferred to registers according to excise law.For this transaction code is j2i8.
in PART1 entries also there is excise invoice details ?
Ans --> In excise invoise qty you are reciving are treated as part 1 entries at the time of capturing invoice part1 of respective excise register gets updated.
afetr posting excise invoice, what about invoice verification ?
At the time of invoice verification
following entries passes on if we take above example
Vendor account - 116.32
GR/IR account 100.00
Cenvate clearing acc 16.32
I hope this would clarify doubts regarding entries
Another regsiters used are
RG1 --> For Finished good means at the time of sending them out this registe updates
Now next
<b>Also how G/L accounts are assigned to various taxes or condition types.What is the significance of account keys in calculation schema</b>
These are assigned according to Excise transaction Type for example for goods recipt we use GRPO so we assigne GL codes w.r.t. Excise Group Excise TT and Company Code at
IMG--> Logistic General --> Tax on Good Movement --> India --> account Determination --> Specify GL codes to excise Transaction Type
Then Excise Transaction type are determined according to Movement type which can check here
IMG--> Logistic General --> Tax on Good Movement --> India --> Business transaction >Incoming Excise Invoice> Specify which Movement type Involve Excise  Invoice
I hope now you can get clear picture of CENVAT postings and calculations
Regards
Vivek
-- Reward for the Efforts