CIN configuration for rejection codes

Question

Dear all,
We reject the incoming excise invoice at the time of posting, with the duties debited to cenvat on hold account. How to configure the rejection code for it to post the duties to cenvat on hold account?
Pls tell me the rejection code posting indicator and rejection code used?
Regards.
Milind

Answer 1

Hi,
Go to SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Maintain Rejection Codes
- In this IMG activity, you define the rejection codes that are used in the Incoming Excise Invoices transaction.
- For each rejection code, enter a code and a description. You can also specify value as X in Post Ind column whether the excise duty in the invoice is to be posted to the CENVAT on hold account, instead of the CENVAT clearing account.
Function of Post Ind active is to Post Excise Duty to CENVAT on Hold Account: - Specifies that when you assign the rejection code to an excise invoice, the system posts the excise duty to the CENVAT on hold account when you come to post the excise duty.
Procedure: -
1. A vendor sends you an excise invoice that, for some reason, you cannot accept.
2. You capture the excise invoice in the Incoming Excise Invoices transaction as normal, but you assign it a rejection code.
3. You then post the excise on the excise invoice to the CENVAT account. The system credits posts the excise to the CENVAT clearing account,as normal, but instead of debiting the excise duty accounts, it debits the CENVAT on hold account.