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.

Similar Messages

Excise duty on capital goods 100% on hold....

Hi Experts-
In general cases when we do capital goods purchase, 50% tax we will pay and 50% tax will be on hold....my client requirement is 100% need to be hold....Pls guide me how can i fullfill that?
Pls provide T.codes alos...
The general entry should be like this....
Suppose TAX ON CAPITAL GOODS IS RS 20
RG 23C BED DR 10
CENVAT on hold DR 10
To CENVAT clearing a/c 20
But they want like this....
CENVAT on hold DR 20
To CENVAT Clearing a/c 20
Please give inputs...
Thanks
Chandu

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.

Excise capture for capital goods

Hi,
Recently we have purchase capital goods for our organization it is a machine with higher cost, in J1ID We have maintain chapter ID for that capital goods with material and chapter ID combination, also in J1ID tax % BED, ECES SECESS is maintain and also the material type in J1ID is selected as ASSETT. till now we have not taken excise for capital goods for this machine we want to capture the excise, now I want to know the further process is the process is same as we done for othere excise materials,
1: Capture excise invoice in J1IEX ,
2: Make the GR with MB01 or MIGO ref. to J1IEX excise invoice number
3: Post Part2 J1IEX, is the same procedure we have to follow or there si some different method for this, as for capital in first year 50% duty to be avlied and remaning in next 2 years with J2I8, so what should be the process and what settings to be checked for this.
regards,
zafar

Hi,
Can you help on this.
regards,
zafar

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

Canacellation of excise invoice for capital goods

Hallo gurus
i create po for asset material and against po i receipt the quantity. that time register update rg23c 1&2.after that i cancel the material document and i want to cancel the excise invoice but that it will be get error no credit available so, plz give me proper solution with steps or some customization is missing from my side .
thanks
rahul

Dear Rahul
Which Version you are using if you are using 4.6c, its not possible cancle the excise invioce. if you are using version 4.7onwards its possible.
you can reverse the MIGO Document, that ref material document you can go j1iex T-Code, frist Post the reverse document, The amount Cr to Dr, afterwards you can Cancel the excise invioce no. in j1iex.
Thanks And regards
Sonu

Excise invoice wrongly captured as Capital Goods instead of Raw material

All SAP Gurus,
We have wrongly captured Excise invoice as Capital Goods instead of Raw material (part I entry has been created at the time of GR, MIGO).
Excise invoice is not posted yet.
How to correct this mistake?
Regards,

Hi Rajan,
We dont have such provision in Standard SAP to correct this types of wrongly posted transaction.
Only things you have to do that.
1. 1st cancel the GR using MIGO---> Cancellation
2. Then Using J1IEX-> Cancel-> Enter Internal/External Excise Invoice No.---> Rejection Code in
Miscellanious Tab---> Save it----> You have to confirm the Captured Excise Invoice when system asked for.
Then Again you have follow the Standard procedure to Excise Capture/GR post/ Excise Post procedure to post GR and Capture/post Excise Invoice.
Hope this will helps you to resove you issue.
Cheers
MAnoj K Singh

Excice invoice captured as capital goods, but material is raw material

All SAP Gurus,
We have wrongly captured (and posted) the excise invoice as Capital goods (RG 23C), but material is Raw material (RG 23A).
Material document can not be reversed as material is already issued and consumed for production activities.
To get the effect in Rg 23 A, we have passed the Excise JV (J1IH - Other Adj.).
Due to this Excise JV, we are getting entry in RG 23A, but the same entry is also displayed in RG 23C.
Is there a way to delete/remove/reverse this entry from RG 23C.
Please suggest,
Regards,

Hi,
Use following functions to adjust the duties in RG23A and RG23C;
Go to J1IH - Excise JV
Use following method to reduce duties from RG23C Accounts
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. Here in your case select RG23C.
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.
Use following method to take duty credit in RG23A Accounts
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.
u2022 CENVAT account selection group box
Specify which account is affected by the adjustment posting is for. Here in your case select RG23A.
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.
Then do J2I5 - Extract and J2I6 - Print Excise Registers

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...

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

Cenvat on Capital Goods Procurement (CIN)

Hi SAP Gurus,
With respect to the Capital Goods procurement in CIN, my client has requested the following process -
Capital goods have 5 years useful life and want to sell it after 3 years usage -
Excise on the Capital Goods = Rs.20,000/-
So this year Cenvat Credit = Rs.4,000/- and the next 2 years Cenvat Credit = Rs.4,000/- each
Total Cenvat credit = Rs.12,000/-
(which is calculated as 20,000 INR / 5 year * 3 year = 12,000).
But the Cenvat balance of Rs.8,000 [20,000 12,000] should be added back (cancel the offset) and it should be assinged to cost.
Is the above process possible in SAP..???
Can anyone please let me know.
Thanks & regards,
Chaps

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

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

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

EXCISE ON CAPITAL GOODS

hi
    "for capital items 50% of excise duty is available for credit immediately ,50% in next financial year ,some time credit can be taken in same year IF
1 P O RETURN FOR OF CAPITAL
2 STOCK TRANSFER TO ANOTHER PLANT"
CAN ANY BODY EXPLAIN ME ABOVE SENIRO WITH EXAMPLE
WITH REGARDS
HARDIK
Edited by: hardik_khandelwal on Sep 17, 2010 1:32 PM

Hi,
for capital items 50% of excise duty is available for credit immediately , 50% in next financial year ,some time credit can be taken in same year IF
1 P O RETURN FOR OF CAPITAL
2 STOCK TRANSFER TO ANOTHER PLANT"
During MIGO u2013 Part I Posting
S- Debit     KBS
H-Credit     WRX     PL-Vnd-Mtl
During Excise Posting- Part II
S- Debit     CENVAT OH
S- Debit     CENVAT on CG-SEC
S- Debit     CENVAT on CG-BED
S- Debit S     CENVAT on CG-ECS
H-Credit     PL-Vnd-CENVAT
Transfer of credit for Capital Goods for next year u2013 J2I8
H-Credit     CENVAT OH
S- Debit S     CENVAT on CG-SEC
S- Debit S     CENVAT on CG-BED
S- Debit S     CENVAT on CG-ECS
Then you can send or sell the Asset in current finincial year but before that make sure that it has to retire in FI.

Additional Excise duty credit to be taken in current year for capital goods

Dear All,
I am using SAP 2007 B PL12. My client buys capital goods where BED + Additional Excise Duty is also there. Now the client wants that credit of 50 % of BED should go to next year but credit of AED should be taken fully in this year. How to configure the above scenario in SAP 2007 B PL 12 as i have configured the capital goods on hold % as 50 % in GL A/C Determination. The system automatically passes 50% of all CENVAT type duties on capital goods to the on hold a/c.
Regards,
Rahul

Hi,
I have raised this issue to SAP support but they say that they need to do some more research into this.
They have also suggested passing JE. But the issue with JV is that it show up as a separate line in RG 23C Part II register which is not acceptable to most of the clients. Plus the excise no. changes.
Regards,
Rahul

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

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