EXCISE DUTY UPDATION

Question

Dear all
we produce X in our manfacturing plant
bill of material for X  is  x1  and  x2
x1 and x2 are excisable items. x1 procured from local manufacturer. x2 is semifinished material from subcontractor(a,b are the bill of mateials to be provided to sub con ven to prepare semifinished x2)
After producing X, we sell in market.
For the above scenario, please give outline overview of  as to how excise entries and registers to be maintained from purchase of raw material to selling of finished goods.
Please explain with simple example

Answer 1

hi
we will start with a and b
following will be the entries with updation of excise registr RG23 for purchase of a and b and x1
At the time of GR (MIGO);
Stock A/c - Dr
GR/IR Clearing A/c - Cr
Excise Invoice Posting (J1IEX);
CENVAT Receivable A/c - Dr
CENVAT Clearing A/c - Cr
At the time of LIV (MIRO);
Vendor A/c - Cr
GR/IR Clearing A/c - Dr
CENVAT Clearing A/c - Dr
now for subcontracting of x2
Post Excise Invoice for FG received from Subcontractor (J1IEX)
Accounting Entry: -
CENVAT Input BED - Dr
CENVAT Input ECS - Dr
CENVAT Input ECS - Dr
CENVAT Clearing A/c - Cr
If Material has Price Control as "V" (MAP)
(BSX) Stock A/c of Assembly - Dr
(BSV) Change in Subcon Stock - Cr
(FRL) Subcontracting Charges - Dr
(WRX) GR/IR Clearing A/c - Cr
(BSX) Stock A/c of Components - Cr
(GBB-VBO) Consumption A/c of Components - Dr
now u will use material x1 and x2  for X
for this rg1 entries will be get generate
then the part will come for sale
hope it help
regards
kunal