Cenvat Process

Dear Expert,
can anyone tell full process of all cenvat utilization and cenvat adjustment so on. i can't understand the process how do pay the excise amount to govt and where i can check that remaining amount for payment and where we can compare the collection and payment excise.
can anyone help me
Thanks for advance

Hi,
Note 542862 - FAQ: Country Version India (CIN) General MM queries
Note 952290 - CIN: General Clarifications for CIN - MM
Regards,
Saju.S

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Consignment process and CIN (CENVAT)

Hi ,
I am clear abt the CENVAT process for normal inventory but not sure how should we proceed in case of CONSIGNMENT inventory.
Can anyone pls let me know the process of taking CENVAT in case of Consignment inventory ?
Regards
Shrey

Hi,
Check on it:-
Freight, Excise in Consignment Process
cenvat account
pherasath

PO Pricing Issue

Hi,
I have a requirement:
PO Price = 1000 ... out of which 800 to Vendor account and 200 to other tax account
PO Price = 1000 ... out of which 700 to vendor account and 300 to other tax account
so PO price would always be 1000 .. user should be manually allowed to enter the bifercation. .. is this possible?
Please revert.
Thanks And Regards,
KK

Hi,
I am not sure what you are trying to achieve?
the total price including all of the conditions you have mentioned is 122.37 and this is exactly what is being posted to the material account. So there is no system error or incorrect calculations?
If the material is MAP controlled, as you indicate, then ALL costs are reflected directly in the material stock account.
If you wanted 105.56 to be posted then you should switch it to std price control instead of MAP and 105.56 will be posted to the stock account every time (and the balance to a price variance account).
I am not very familiar with the Cenvat process (it is not used in the UK) and so this may be why I am misunderstanding your problem.
Steve B

J1id Excise Rate

Please let me know how to maintain the exceptional material excise rate and how does it get affected while doing j1iex.
Regards,
Sudha

Hi
Indirect Taxes u2192 Master Data u2192
Excise Rate Maintenance, and then select the following options described below.
1. Chapter IDs
On this screen, you define the chapter IDs and corresponding descriptions as described in the excise
tariff structure
2. Material and Chapter ID Combination
On this screen, you maintain the excise data relating to your materials. For each material, specify:
u2022 Chapter ID
u2022 Whether the material can be sent to subcontractors
u2022 The material type
This denotes, for example, whether the material is a raw material, a capital good u2013
this affects the CENVAT process u2013 or if it is a finished good on which excise has been paid, to
be covered by the Update of RG 1 and Part I Registers
u2022 Whether you accept more than one goods receipt per excise invoice, and if so, whether the excise
duty should be credited to the CENVAT account immediately a goods receipt is posted (multiple
credit) or not until all the goods receipts have arrived (single credit
This information is valid for a given plant. If the information is valid for all of your plants, however,
leave the Plant field blank.
3.Material Assessable Value
On this screen, you maintain the net dealer price and the assessable value of all materials that you
send to subcontractors or for any other issue. These values serve as the excise base value when the
materials are issued, and tell the system how much excise duty to reverse from your CENVAT
account.
4.CENVAT Determination
On this screen, you specify which raw materials are used to produce which finished (or semifinished)
goods. The system uses this information to determine whether it you can claim a CENVAT credit for a
material.
5. Excise Tax Rate
On this screen, you specify for each chapter ID every possible rate of excise duty that might apply, so
you must take into consideration each permutation of plant and customer; and each combination of
plant and vendor.
You can maintain the basic excise rates in the following forms:
u2022 Ad valorem [Ext.]
u2022 Specific [Ext.]
u2022 As a combination of both
For each rate, specify until which date it applies.
You can also maintain the additional excise duty and special excise duty in ad valorem form, should
any apply. If you need to give these rates as a fixed sum, use the Quantity Based AED and SED
screen.
Additional Excise Rate
On this screen, maintain any cess applicable.
Exceptional Material Excise Rate
On this screen, maintain any exceptions that apply to the excise rates that you have defined.
Exceptions can apply to a single material from all vendors, of to a single material from one vendor
only. If you have an exceptional rate for a customeru2013material combination, you can maintain it here as
well.
Sales Tax Setoff Percentages
On this screen, maintain the percentage of local sales tax on inputs that you can deduct
against LST on outputs. The setoff amount is deducted from the inventory valuation of the material.
Currently very few states, for example, Maharashtra and Gujarat, participate in this scheme.
Hope it helps you

Rejection to second Stage dealer

Dear Gurus,
This is a scenario where we have taken material from a second stage dealer, with all the MRP indicator in GR and all the process as per the dealer CENVAT process.
Now we to send the material back to the supplier through return PO. Please explain the process.
Regards,
Ashish

this can be done by selecting GET EXCISE INVOICE in J1IS.
Solved.

Immediate CENVAT Utilization for a particular business process

HI Friends,
The Business requirement is that a single Excise invoice number should be generated for the plant be it domestic or Export Transactions. So we have accordingly maintained a single series group.
The client requires immediate utilization of CENVAT in case of Export under rebate claim alone and for other transactions it would done at month end. As utilization is based on series group can you please suggest how to over come the issue.
Regards
KS

No answered received

Return delivery process with excise in MM module

Dear Friends,
this is chandu working as a consultant-mm , please any one can give the clear information regarding return delivery process for excise material , i'm following one process that is after invoice verification
1) reverse excise invoice with MR8M
2) return delivery with MIGO
3) prepare outgoing excise invoice with J1IS for print out J1IV
4) preparing credit memo in MIRO with reference to original po
the second process
1) create return po with selecting return po check box in po
2) GR with reference to the return po
3)then J1IS and J1IV same process
4) credit memo for return po in MIRO
this 2 ways i'm doing the process in the registers part1 that is qty updating (i.e qty is reducing) but in the case of part2 that is the value it is not updating (i.e value has to reduce in the register right i'm working first time on CIN plz guide me the correct procedure if i'm doing wrong , in this my problem is only value not updating part2 register plz give me solution with clear explanation .
regards
chandu

Hi,
Follow the below mentioned procedure;
1. ME21N - Create a Returns PO (Activate "Returns" indicator for PO line item)
2. MIGO - Goods Receipt > Purchase Order (Returns PO) (Here system will hit Mvmt type "161" and you can also select Un-restricted/blocked stock from where you want to return the stock)
3. J1IS u2013 Excise Invoice Other Movements
Here click on u201Ccreateu201D button to create an outgoing excise invoice and reverse the CENVAT Amount.
Here put all details as below and Press u201CEnteru201D.
Ref.doc.type - MATD, Doc Number - Material document No of 161 mvmt, Doc Year, Series Group, Excise Group and Vendor
Here check BED, ECS and SECess values to be reversed and click on u201CSaveu201D button to post the excise invoice.
4. J1IV - Post and Print Outgoing Excise Invoice.
5. MIRO - Credit memo w.r.t. Returns PO.
Regards,
Mahesh Wagh

Sales Order is being processed

Hi All,
1) My scenario is sales bom, the header is delivered and the line items are billed, after completion of billing the sales order status for header is complete and the line items status is being process...due to this these sales orders are showing as open sales orders,
2) I want to know a sales process for an asset...at the time of purchase there is no excise has been paid, so it means we canu2019t avail the excise at the time sale also... So at the time of sale the cenvat entries will not be there..Kindly give your valuable suggestions...whether the asset should sold without excise...whereas the configuration is with formula based pricing......
Thanks & Regards,
Mani

Hi Pete,
Thank you so much for your reply.
At that point of time, sales order is not in open condition. Actually that return order will be created from service notification through action box items - workflow. Also the sales order no xxxxxx is the return order number & its not the original sales order number.
Regards,
Maheswaran.

CIN process to enter Excise Invoice for Return Delivery

Folks
I would like to know How to process excise invoice for return delivery. We have return sales order, return delivery created and product is received into inventory Customer return Blocked stock (movement 657).
Where and How can i enter Excise invoice for this return (Credit Memo)?
I tried J1IH transaction--> Other Adjustments
I am getting following error.
GL account has not been assigned for RG23ASED in customization
Message no. 8I447
Diagnosis
GL account has not been assigned for the excise a/c in customization
Procedure
Assign GL a/c for the excise a/c in CIN customization under : Accounting -> Assign GL accounts to excise groups and transaction types"
Please help

J1IIN is intended only for outgoing sales and not for returns.
For updation of excise related sales returns, run J1IH and do the following:-
Customer Credit
Choose the Additional excise input the original excise invoice reference, document year, company code, plant and excise group and execute. There input manually what value you need to give credit and save.
Cenvat Debit
Choose Other Adjustment and here also, maintain the datas whatever you input as above and save.
G. Lakshmipathi

Process flow of excise duty from procurement to sales accounting entry with amount.

Dear Expert ,
Kindly any one help the process flow of excise duty calculation from procurement to sales accounting entry with amount. for example.- if material amount is Rs. 10,0000 and excise duty is 8% , edu ecss 2 % , and sec ecss 1%. I want know the accounting entry on- MIGO, J1IEX, MIRO, F-43 AND , PGI, BILLING DOCUMENT, J1IJ , TR6 CHALLAN, J2IUN.
Regards
Akshaya

Hi,
In case of
A. Procurement : there are two types of procurement viz. Local and Import
LOCAL
1. MIGO
Inventory A/c Dr
To GR?IR
2. J1IEX
CENVAT Receivable (Basic) A/c - Dr
CENVATReceivable (Ecess) A/c - Dr
CENVAT Receivable (S & H) A/c - Dr
To CENVAT Clearing
3. MIRO
CENVAT Clearing A/c - Dr
To Vendor A/chrough
4. F-43
No excise entry through SAP direct posting but through manual posting in case using TAXINN procedure.
5. TR6 Challan
PLA Payment (Basic) A/c - Dr
PLA Payment (Ecess) A/c - Dr
PLA Payment (S & H) A/c - Dr
To PLA on Hold A/c
IMPORT
1. MIRO
ECS+SECS on Cus+CVD A/c Dr (consists of ECS on custm+cvd and S & H on custm+cvd)
CVD Clearing A/c Dr (consists of Additional Duty CVD and CVD)
Customs Clearing A/c Dr (consists of Basic Customs)
To Customs Vendor
2. MIGO
Inventory A/c - Dr
To GR/IR A/c
To Customs Clearing (consists of Basic Customs)
To ECS+SECS on Cus+CVD (consists of ECS on custm+cvd and S & H on custm+cvd)
3. J1IEX
CENVAT Receivable (Basic) A/c - Dr
CENVATReceivable (Ecess) A/c - Dr
CENVAT Receivable (S & H) A/c - Dr
To CVD Clearing
4. F-43
No excise entry through SAP direct posting but through manual posting in case using TAXINN procedure.
5. TR6 Challan
PLA Payment (Basic) A/c - Dr
PLA Payment (Ecess) A/c - Dr
PLA Payment (S & H) A/c - Dr
To PLA on Hold A/c
Sales
1. PGI
COGS A/c Dr
To Inventory
2. Billing Document
Excise
ED Suspense A/c Dr
To Liability for BED
To Liability for ECS
To Liability for S & H
Customer
Customer A/c Dr
To ED Suspense A/c
To Revenue
To VAT / CST
Hope your doubts are clear.
Regards,
Tejas

CENVAT On hold account settlement

Hi,
In case of Capital Goods, I want to know how do we settle the CENVAT on Hold Account?
50% is goes to the Cenvat Receivables in the first year and rest 50% to CENVAT on Hold Account.
Next year how do we settle this CENVAT on Hold Account? Is this manual or automatic Process?
if some one know Pls Reply
Regards,
Ashish Vats

Hi Ashish,
This step has to be carried out manually. You have to use Tcode: J2I8 for carrying out this process. (Path: TCode: J1ILN (for SAP easy access india localization menu):indirect taxes -- procurement -- excise invoice -- reports -- J2I8 - Balance credit for capital goods)
Go to this transaction, input company code, plant and excise group and you can minimize selection by vendor, excise invoice number, date etc. Then execute.
The system will show all the CENVAT on Hold entries. You have to manually check the entries depending upon the date and settle the entries.
Hope this clarifies and helps.
Thanks,
Viswanath

Cenvat on Capital Goods

Hi all,
Whenever credit on capital goods need to be availed, you can claim 50% of credit at the time of receipt by specifying ‘Yes’ in the ‘Claim CENVAT.
Now I want to know that where I have to setup / define the percentage of CENVAT credit the user wants to take immediately on PO receipt of the goods.
regards
Sanjay

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

Excise cycle in case of cenvatable items

Hi SAP gurus
A po is raised for a cenvatable item.can some body please guide how the excise entry will appear and what stage.Kindly give the process wise T code . Points will be given.
Thanks in advance.
sk

Hi, Sai Krishna,
Please send me the same what you have sent to Mr. Surendra for me also it is very important . points will be awarded.
My mail ID : [email protected]
Thanks in advance
Ramesh

CIN: Return STO process

Hi All,
I have the scenario regarding to Return STO process.
Step1: Creating the return STO process.
Step2: Negative goods receipt through MIGO. The movement type is 161.
Step3: Creating delivery through VL10B. When iam doing the Post goods receipt (Negative post goods issue) through VL02N iam getting below error.
Error: Purchase Order XXXX does not contain items for a stock transfer
CIN related issue: How to handle the CIN ACTIVITIES. What transactions we have to use for updating or adjusting the Cenvat accounts. And what documents we have to use as references.
Please help me to solve these issues.
Thank you
Regards
Lakshmikanth

Hi All,
Any ideas please?
Regards
Lakshmikanth

Utilization of Cenvat Credit from Service Tax Payable.

Hi,
Please guide me whether the process i am following is correct or not. And if it is correct, please help with what additional steps i might be required to perform inorder to resolve the issue.
Case: We are a Company where we donot manufacture and sell items. But we do provide services to our customers. Hence we would like to take the Cenvat input credit from the materials that we buy for our requirements and would like to utilize the Service tax that we would have to pay to Government (On our service contracts with customers).
During the process our RG23A Part-I, Part-II, RG23C Part-I, Part-II have been updated properly. Service tax entries for A/P and A/R have been posted successfully. And the next i am trying to do is utilize Service tax credit (AR) with Cenvat credit available from RG23A, and RG23C by using Transaction code: J2iUN.
I am using the option pay Service tax from Cenvat Cr.
Issue:
When i try to simulate after selecting the utilization from Basic excise duty, education cess and higher education cess i am able to see the entry that i require. But when i try to post the entry system is giving the following error message.
Balancing field " Profit center " in line item 001 not filled. Message ID: GLT2201.
The simulated entry is:
Sales tax payable A/c Dr
Education Cess payable A/c Dr
Secondary Higher Education Cess Payable A/c Dr
Cenvat Basic Excise Duty A/c Cr
Cenvat Education Cess A/c Cr
Cenvat Hig Sec Education Cess A/c Cr
Our Company code is active for Document Splitting with Profit center as a mandatory field.
Looking forward.
Thanks and Regards,
Purna.

Dear,
As per your description its look like you have follow standard procedure.
Only thing is that when you do J2IUN, Input Business Area on Selection screen to avoid profit center error.
Let me know if you still getting any error.
Regards,
Rajesh koladiya
Edited by: Rajesh Koladiya on May 7, 2010 5:09 PM

Cenvat Process

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