Excise JV

Question

Hi MM Gurus,
       Pls Let me know the importance of fields and when we need to perform those functions in J1IH such as Material writeoff, Material Non productive, Additional excise and Cancel Excise and also Other adjustment , TR6 challan. And whether these TR6 challan will be posted by finance or MM people.
Pls let me know with example.
And also after doing J2I8 for Capital transfer of Credit we need to do J2IUN.
In the above in doing Material write off or Matl non prod do we need to enter duties manually or do we need to click GET excise invoice .
Thanks n Regards
Girish
Edited by: Girish CM on Aug 21, 2008 5:09 PM

Answer 1

Hi,
CENVAT Adjustment Postings (J1IH u2013 Excise JV)
Use: - You use these functions if you need to make an adjustment posting to any of your CENVAT accounts. You can make adjustment postings to account for:
u2022 Scrap
u2022 Materials that you have not used in production
u2022 Additional excise paid by vendors
u2022 Money that you have transferred to your personal ledger account
u2022 Other transactions
You can also use this function to cancel excise invoices.
Features: - Each of the different types of adjustment postings are documented separately. However, they all work on the same principle, as follows.
Reference Document: - On the initial screen of the transaction, you specify the reference document, that is, the document which the adjustment posting is to refer to u2013 either an internal document, such as a material document or a subcontracting challan u2013 or an external document, such as an incoming excise invoice
You also specify which registers are affected by the posting. In many cases, the adjustment will have to be remitted to the authorities on a fortnightly basis. The adjustment will then be included when you run the Remittance of Excise Duty Fortnightly report. If the adjustment has to be remitted immediately, you specify which register is affected.
Excise Details: - When you proceed to the detail screen, the system automatically shows the line items from the reference document, if it is an internal document. You specify how much excise duty is to be adjusted and which CENVAT accounts the adjustment posting is to be made to.
When you edit the excise details, there are a number of functions that are available, depending on the type of adjustment posting:
u2022 Assigning excise invoice to line items
u2022 Specifying which G/L accounts are to be adjusted
u2022 Displaying balances of CENVAT accounts
When you save your changes, the system creates an accounting document to make the appropriate postings.
1. Making Adjustment Postings for Scrap
Use: - You follow this procedure if you have scrapped a material and want to reverse the excise duty debited to your CENVAT account.
Procedure: -
1. J1IH - Excise JV > Create > Matl write-off.
2. Enter data as required, including:
u2022 Document number (This Document is of Movement Type u2013 551 i.e. GI for Scrap)
Enter the number of the document that you used to scrap the material.
u2022 CENVAT account selection group box
Specify which account is affected by the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment.
3. Click on u201CEnteru201D button.
The system displays the information from the material document.
4. Adjust the posting date as necessary.
5. Adjust the excise duty for each line item either:
u2022 Manually
u2022 By assigning the line item to an excise invoice
6. Specify which G/L accounts are to be posted to.
Here you can change Debit A/c as per your requirement.
7. Save the adjustment posting.
System will post Excise JV Document, Accounting Document Part2 Serial No.
2. Making Adjustment Postings for Materials Not Used in Production
Use: - You follow this procedure if you have not used a material in the production process and want to reverse the excise duty debited to your CENVAT account.
Procedure: -
1. J1IH > Excise JV > Create > Matl non-prod.
2. Enter data as required, including:
u2022 Document number
Enter the number of the material document that the adjustment posting is to refer to.
u2022 CENVAT account selection group box
Specify which account is affected by the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment.
3. Click on u201CEnteru201D button.
The system displays the information from the material document.
4. Adjust the posting date as necessary.
5. Adjust the excise duty for each line item either:
u2022 Manually
u2022 By assigning the line item to an excise invoice
6. Specify which G/L accounts are to be posted to.
Here you can change Debit A/c as per your requirement.
7. Save the adjustment posting.
Excise JV Document, Accounting Document with Part2 Serial No has been successfully created
3. Making Adjustment Postings for Additional Excise Paid by Vendors
Use: - You follow this procedure if a vendor has increased the amount of excise duty that it originally charged you and you want to debit the difference to your CENVAT account.
Procedure: -
1. J1IH > Excise JV > Additional excise.
2. Enter data as required.
In the Document number field, enter then number of the document sent to you by the vendor.
3. Click on u201CEnteru201D button.
4. Adjust the posting date as necessary and Enter Vendor Name.
5. Enter the amount of excise duty in either of the following ways:
u2022 To enter line items for different materials and the excise duty accordingly, choose u201CDetailsu201D button and enter the line items in the table.
Here Enter Material code, quantity as per excise invoice, reference document (i.e. GRN Document), batch no., BED and Ed Cess Amount to be posted.
u2022 To enter the excise duty only, choose u201CHeaderu201D button and enter the excise duty in the totals fields at the foot of the screen.
6. If the duty qualifies as countervailing duty (CVD):
a. Select CVD applicable.
b. Enter the CVD amount in the BED amount field.
7. Specify which G/L accounts are to be posted to.
8. Save the adjustment posting.
System will post Excise JV Document; Accounting Document with Part2 Serial No has been successfully created.
4. Making Adjustment Postings for Money Transferred to PLA 
Use: - You follow this procedure to make an adjustment posting when you transfer money to your personal ledger account (PLA).
Prerequisites: - You have already transferred the money to your PLA at the bank, using a TR6 challan, and have posted the corresponding accounting document.
Procedure: -
1. J1IH > Excise JV > TR6 challan.
2. Enter data as required, including the document number.
You can enter either the challan number OR the number of the accounting document (This document is to be first created through T. Code u2013 FB50. In this Document Debit PLA on Hold A/c and Credit Bank A/c with the Amount to be transferred in PLA CENVAT Accounts)
3. Click on u201CEnteru201D button.
If you entered the accounting document number, the system displays the information from it.
4. Enter the amounts against the accounts that you require.
5. Save the adjustment posting.
6. System will post Excise JV Document; Accounting Document with Part2 Serial No has been successfully created.
5. Canceling Excise Invoices
Use: - You follow this procedure in order to cancel an outgoing excise invoice. It reverses any excise duty accounted for.
Procedure: -
1. J1IH > Excise JV > Cancel exc. inv.
2. Enter the number, year, and series group of the excise invoice that you want to cancel.
A dialog box appears.
3. Choose Yes.
4. Before posting the document check the Accounting document going to be generated.
Here click on u201CDetermine G/L Accountsu201D button.
5. Save the adjustment posting.
System will post Excise JV Document; Accounting Document with Part2 Serial No has been successfully created.
6. Making Adjustment Postings for Other Transactions
Use: - You follow this procedure if you want to make an adjustment posting that does not fall into any of the other categories of adjustment offered by this function. You can only use an external document as your reference document.
Procedure: -
1. J1IH > Excise JV > Other adj.
2. Enter data as required, including:
u2022 Document number
Enter the number of the external document that you want to refer to.
u2022 CENVAT account selection group box
Specify which account is affected by the adjustment posting is for. If the posting does not have to be remitted immediately, select Fortnightly payment.
3. Click on u201CEnteru201D button.
The system displays the information from the material document.
4. Adjust the posting date as necessary and enter Vendor code as per requirement.
5. Enter the amount of excise duty in either of the following ways:
u2022 To enter line items for different materials and the excise duty accordingly, choose u201CDetailsu201D button and enter the line items in the table.
Here fill details like Material Code, Quantity as per Excise Invoice, Batch No, Reference (i.e. GRN Document), BED and Ed Cess Amount manually.
If you want system to propose the BED and Ed Cess Amount, Click on u201CGet Excise Invoiceu201D button and select the proper Excise Invoice from which the proportionate amount is to be copied.
Select the u201CExcise Invoiceu201D and click on u201CContinueu201D button.
It will copy BED and Ed Cess and SECess amount as per the quantity mentioned here. It will be proposed in proportion of selected Excise Invoice quantity and value.
u2022 To enter the excise duty only, choose u201CHeaderu201D button and enter the excise duty in the totals fields at the foot of the screen.
6. Specify which G/L accounts are to be posted to.
7. Save the adjustment posting.
System will post Excise JV Document; Accounting Document with Part2 Serial No has been successfully created.
TIPS to simplify Excise JV transactions: - (J1IH)
1. Assigning Excise Invoices to Line Items 
Use: - When you make an adjustment posting, you follow this procedure if you want to specify the original excise invoice associated with a line item.
Procedure: -
1. Select the line item that you want and choose Get excise invoice.
The system displays a list of all the excise invoices that you have posted from this vendor for this particular material.
2. Select the excise invoice that you want and click on u201CEnteru201D button.
The system:
u2022 Enters the excise invoice document number in the Ref. doc. field (Reference document).
u2022 Calculates how much of the excise duty from the excise invoice should be apportioned to the line item and enters it in the excise duty fields.
If you then overwrite these amounts, you should also overwrite the reference document number with an explanatory text, since there is no point in maintaining the link to the reference document anymore.
For e.g. you have a line item with ten plates of glass that you have broken and are to be scrapped. You have three excise invoices from the same vendor to choose from. You pick one for 20 plates of glass with BED at INR 200. The system automatically apportions INR 100 to the line item that is to be reversed.
2. Specifying Which CENVAT Accounts to Adjust
Use: - When you make an adjustment posting, you have to specify which CENVAT accounts are to be adjusted.
Procedure: -
1. Choose Determine G/L accounts.
A dialog box appears that shows how much will be posted to which G/L accounts. The accounts that are displayed depend on the excise group and the CENVAT account that you entered on the selection screen.
2. Add another account, if you need to, and adjust the other postings so that the credits and debits match.
3. Enter a business area and cost center, if necessary.
4. To close the dialog box, click on u201CEnteru201D button.
3. Displaying CENVAT Account Balances
To display the balances of your CENVAT accounts, choose Balances.
The system displays the balances only of the CENVAT accounts that are affected by your G/L postings.
J2IUN u2013 Monthly Utilization
In the selection screen, put following details
Under u201CGeneral Datau201D Tab
u2022 Company Code u2013 6100
u2022 Plant u2013 6105
u2022 Excise Group u2013 05
u2022 ADC Subtransaction Type u2013 IP i.e. SUBTRANSACTION TYPE FOR IMPORTS - ADC
Under u201CExcise Invoice Selectionu201D Tab
u2022 Period -
Under u201CPosting Datau201D Tab
u2022 Business Area u2013 u201CA1u201D
u2022 Fortnightly Payment Posting Date -
Under u201CCross utilization b/w Service tax and CENVATu201D Tab
u2022 Service tax credit account -
u2022 ECESS on ser tax account -
u2022 SECess on ser tax account -
After putting all the necessary Selection Details, Press u201CExecuteu201D button
In the output Screen, select the line of Excise Duty like; BED, ECS and SECess one by one and click on u201CSelect Dutyu201D button to views the relevant Accounts for Excise duties;
Now put the duty amount to be utilized against the u201CACCOUNT NAMEu201D from which you want to utilize.
Same procedure is to be repeated for ECS and SECess also.
Now click on u201CSimulateu201D button to verify the Accounting Entries of Monthly Utilization
System generates FI Entry during Monthly Utilization
CENVAT Payable for BED, ECS & SECess - Dr
CENVAT Receivable for BED, ECS & SECess - Cr
Now u201CSaveu201D the Utilization Document.
After posting the document, system will generate a message as below
Part 2 post and accounting document XXXXXX generated.
Note: -
There is no transaction type for determining the accounts of the fortnightly utilization.
The credit account of the transaction type u2018DLFCu2018 is used as the debit account here.
For the credit side we pick the debit accounts from the GRPO, EWPO and TR6C transactions.
So it is mandatory that whether you use EWPO or not you should have maintained the account determination for all transaction types for a given excise group.
So check the account determination for all above ETTs.