CENVAT reversal of capital goods after Vendor payment

Hello all,
I want to reverse CENVAT for capital goods. In this case, MIRO is already done and Vendor payment is also carried out.
Please suggest the steps by which I can reverse CENVAT properly.
Kapil

Hi,
Refer thread for option
return material to vendor after IV is done + CIn
Regards,
Biju K

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Cenvat credit of Capital goods

Hi,
From the last year 2011, I heard that the cenvat credit for capital goods can be taken 100 % in the first year itself.
How to the make the changes accordingly so that the 100 % tax amount goes to cenvat account instead of posting 50% to cenvat account & 50 % to cenvat on-hold account and then doing J2I8 to transfer of credits from cenvat on-hold account to cenvat account.
Regards
Madhusudan

Any solutions??
regards
Edited by: madhusnb4 on Jan 23, 2012 1:27 PM

Availing full CENVAT Credit for Capital goods

Hi,
In our client, they want avail full cenvat credit for Capital goods in the present fiscal year itself. How can we do this in SAP? Plz. explain me.

Hi Pawan,
You cannot avail total 100% Credit on the CENVAT paid on capital purchase as per the goverment rules.
The puirpose of maintaining the goods as capital goods are that you are only eligible for 50% credit in the current fiscal year and remaining 50% Credit in next Fiscal Year. its nothing that we configured, it is standard functionality in the country version. The Excise Transaction Type CAPE which come in to play at the time of capital procurement.
1. If your Client Requirement is to take 100% Credit for this material, then ask them to maintain Chater ID for this Material in J1ID as RAW materail. and During Excise Auditing period your client has to give relevent explaination to Excise Authority.
2. If your client has maintained in J1ID as capital , you can take the Remaining 50% Credit in current fiscal year also using J2I8, Before using this transaction verified from Excise Authority.
Or else As per my knowledge you cannt take 100% excise credit for Capital goods.
Cheers
Manoj K Singh

Capital goods, during vendor return, Excise is getting post to RG23A instea

Hi SAP Guru,
I have very critical issue to be resolved immediately in the area of Excise for CAPITAL GOODS, please help! The things is....
1. At GR level using mvt 101, system is posting all BEDECSSECess to correct RG23C register, fine
Quality people have rejected goods, when Im trying to create vendor return delivery using......
1. GR (122) >J1IS>J1IV, using this process system is posting BED+ECS to RG23C but SECess to RG23A, I wanted to know why SECess is getting post in RG23A instead RG23C. plz suggest if any config. chages to be done.
Or
2. When I am trying GR (122) along with all Excise parameters using enjoy MIGO( Return Delivery), system is throwing error "RG23C-AT1 amount 1600.00 is greater than the available amount 0.00". When I checked the relevant register I found out enough balance.
Or
3. After GR (122), when Im using J1IH(JV) method, system is throwing error like " Balance in transaction currency 'Message no. F5702'.
Now plz suggest the correct answer!
Thanks & Regards
Manoj K Singh
+91 9777299580

Hi Gurus ,
I hope you must be doing greate, steps are as follow which i'm following for vendor return and subsequent delivery for capital goods.
1. PO -> MIGO (101) -> Excise capute & Posting using J1IEX -> MIRO.
For excise, part1 & 2 to relevent register posting has taken placed.
Now quality dept. has rejected the goods, for which vendor delivery should take place.
2. For Vendor return Delivery
MIGO 122 w.r.t GR of 101-> Excise capute & Posting using J1IS&V.
For excise, part1is getting created using J1IS, J1IV is creating part 2, in Acct. doc. RG23C BED/ECS/HEC is being Credit and "PLA On Hold" is being Debited for BED/ECS/HEC amount.
3. For Vendor subsequent delivery, I have done the excise config. for Movt. 123 .
MIGO 123 w.r.t. GR of 122.
While doing GR for 123, system is not generating Excise screen.
any way ,After GR of 123, I have Capture Excise Invoice after inputting all relevent data, but while Posting, System is generating message that Part 2 is does not exist for vendor excise invoice.
Now i thinks my requrement is visible for your understanding to suggest me some valuable idea to resolve this issue.
if possible can plz drop a test mail to hksiva.manoj at gmail dot com for further consultation.
Thanks & Regards
Manoj K Singh

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.

Cenvat credit on capital goods.

Dear all,
1. There is a rule that the cenvat credit in respect of capital goods shall be allowed for the whole amount of the duty paid on such capital goods in the same financial year if such capital goods are cleared from the factory as such in the same financial year.
2.The system is designed in such a way that the cenvat credit in respect of capital goods received in a factory or in the premises of the duty paid of output service at any point of time in a given financial year shall be taken only for an amount not exceeding fifty per cent. of the duty paid on such capital goods in the same financial year.
Please suggest us how to configure the system for the point no :1
Thanks & Regards,
A.Anandarajan.

By standard 50% credit can be taken on first year,If u want to take full credit use transaction J2I8,
Also refer both links
SAP MM CIN Settings
http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/207dd2ad-bf92-2b10-a88b-e3a4a01ca7fc
Capital Procurement in SAP
http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442e6f
Edited by: Jeyakanthan A on Apr 22, 2010 2:01 PM

While taking balance cenvat credit on capital goods not showing J2I8

DEAR ALL
While taking balance cenvat credit (Carry forward) on capital goods not showing in J2I8 transaction, in j1iex is Header level is showing INPROCESSES But item level is showing POSTED.
in register PART2 is Upted.
Thanks And Regards
Sonu

Hi,
In capital goods procurement we will use 50% excise this year and rest of 50% credit we will use it in next year.
Bcoz of this in header level its showing incomplete and the invoice posted for 50% created Part 2 entries.
Hope its clear.
reg
Durga
*Assign points if the info is useful

How can we claim 100% cenvat credit on capital goods relating ADDl CVD

Due recent changes in Excise Law we can claim 100% Cenvat credit on ADDL CVD. But as per the present Oracle India Financial set ups it is not possible to claim 100% on capital goods in the same year.

Hi,
First of all, As per our country legal and statutory requirments, we can not utilize 100% CENVAT in the same FY.
Best Regards,
Chandra

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

AED Posting for Capital Goods

Hi
For Capital Goods, excise availed will be 50% for this financial year and 50% for next financial year. Is it applicable for AED/CVD for imported goods also.
Rgds
Srini

Businesses are allowed to set off excise duty on purchases of capital goods against excise duty on outputs. However, unlike with raw materials, you can only set off half of the duty in the first year, and the rest in any year after that.
Prerequisites
In the material master, you have classified the capital goods as such.
Because duty on capital goods is handled using excise transaction type CAPE, you must also have specified that you want this transaction to credit the excise duty to the CENVAT on hold account. You make this setting in Customizing for Logistics u2013 General, by choosing Taxes on Goods Movements ® India ® Account Determination ® Specify Excise Accounts Per Excise Transaction.
You must then have specified which G/L account is the CENVAT on hold account, again in Customizing for Logistics u2013 General, by choosing Taxes on Goods Movements ® India ® Account Determination ® Specify G/L Accounts per Excise Transaction.
Features
When you post an excise invoice that contains capital goods, the system posts half of the excise duty to your CENVAT account and posts the rest to a G/L account for CENVAT on hold.
In following years, you can use a report to identify the capital goods with excise duty on hold and transfer the duty to the CENVAT account (see Transfer of CENVAT Credit on Capital Goods).
Activities
When working with excise invoices that include capital goods, note the following:
Capturing vendor excise invoices
When you create an excise invoice with capital goods, you have to set the material type to A (assets), C (consumables), or T (tools).
Posting excise invoices
When you come to post the excise invoice, the system posts only half of the excise duty to the CENVAT account. The system does not round the amount off.
Transfer of CENVAT Credit on Capital Goods
You use this report to display a list of the vendor excise invoices where the vendor has levied excise duty but you have not posted it (in full) to your CENVAT account.
This is particularly useful in the case of capital goods, in order to find out how much credit remains from previous years.
Features
To access the report, from the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® Reports ® Balance Credit for Capital Goods.
Selection
On the selection screen, enter:
Organizational data
Data of the documents that you want
Output
The system displays a list of excise invoices with excise duty outstanding. It shows you:
The total amounts of the various types of excise duties levied on the excise invoice
How much duty has still to be posted to the CENVAT account
Select the excise invoices that you want and choose Transfer credit. If you want to transfer only a portion of the remaining amount, enter this amount as the amount to be credited.
The system creates an accounting document to post the duty to the CENVAT account and creates an entry in the Part II register.
Regards'
eswarmanu...

Vender return of capital goods in CIN(India)

Hi Experts,
     Cenvat account of Capital good posted (50%)   G/R stage and next April.
     How about vender return?
     Pls explain sinalio.(TRC)
Regards,
    Gaito

Hi,
There are two ways for vendor return.
1. return delivery:
Here you are posting the document with reference to the original GR document.If all the settings for CIN are correct then it will trigger the excise tab in the MIGO , check the duities and post the document.It will reverse the entries.
2.Return PO:
In this case you do the GR with 161 mvt. type followed by credit memo.
The system takes care of the CIN postings.
Cheers,
Satish Purandare

Procedure to return Excisable capital goods

Hi gurus,
I want to return excisable capital goods to vendor on which transactions MIGO, J1IEX, MIRO has been carried out. Can anyone guide me for the procedure?
Also as its stock is not maintained (i.e. directly procured for cost center) how I wil com to kno that it has been returned from system?
Thanks

Hi
There are two parts to it. One is reversal of the excise Cenvat credt availed on the capital goods and the other Debiting the vendor the returned goods.
With regard to Cenvat credit, if it is procured in the previous year, obviously the balance cenvat credit on the goods (50%) would have been availed in the current financial year. If it is not availed, avail the balance credit and reverse the 100% cenvat credit on the goods (as per Excise Rules). For availing the balance 50% credit, if the goods are procured during the year, use transaction code J1IH -> Differential Excise and then raise an excise invoice on the vendor through J1IS for the 100% of the ED amount. This will resolve the Cenvat reversal on the goods to be returned.
With regard to Debiting the vendor for the returned goods, raise a credit memo on the vendor (or ask for the credit memo document from the vendor and book the same). In this case you can credit the GL account to which the original entry has been made using MIRO earlier, with the corresponding Cost Center entered in the document.
Hope it is clear.
Regards,
Lakshmanan Krishnan

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

CIN : Capital goods reversal

Hi
Can someone give the steps for capital goods reversal process in CIN, with the transaction codes.
Regards,
R.Srinivas

see first u have to do cancellation of ur G R N doc in MIGO after that go to J1IEX here select POST & give vendor excise no. then press enter --> now in front of u a screen appears in which all details are displayed , now click on SIMULATE button on top , a small box appears in cenvat reversal is written for part1 & part 2 click on continue & then click on POST CENVAT Button.then u can check in T CODE = FB03 Ucan see that all ur J1IEX Entries i.e CIN entries are reversed , tell to Check in FI FOR T CODE FB03 .
reward for efforts.
sap11
Edited by: sap11 on Jan 24, 2008 10:49 AM

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.

CENVAT reversal of capital goods after Vendor payment

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