J1IH -adjustment entry

Question

Hi, experts
Here i m doing the return scenario to vendor
(Normal process )ME21N - MIGO 103 & 105 (part1 - capture) - J1IEX (part2 -post) - MIRO
(Return Process )MIGO (Return deleivery) with part1 entry -J1IS exise invoice with posting (not doing J1IV) here i m getting ED duty payable entry while saving the J1IS excise invoice.
But now i want the adjustment entry in Modvat receivable account for that i m doing J1IH.In which which doc no to be entered please suggest.and why J1IV is not required here? i m get confused.so please suggest.

Answer 1

Hi,
Return to Vendor Standard Process followed in most of the companies is as follow :
1. At the time of GR , you have captured Excise for whole Qty, for e.g. Qty - 50 , Excise - 120.00 ( BED2Edces%1HScess%),
For e.g.
Accountig entries are
RG-23 A BED HiEdCe-1    Dr    - 80.00
RG-23 A BED A/C -1         Dr   - 16.00
RG-23 A BED EdCess-1    Dr   - 4.00
          CENVAT Clearing A/C            Cr   - 100.00
Now you want to send the material to Vendor
Create Return PO for 25 Qty --> Do MIGO - 161 Movement  -> Create Rerurn Excise Invoice thru J1IS, Accounting Entries will be
BED Payable Govt           Cr. - 40
CENVAT Clearing A/C      Dr. - 40
BED Ecess Payable Go   Dr - 8
CENVAT Clearing A/C      Dr. - 8
BED Hi-Ecess Payable    Cr . - 2
CENVAT Clearing A/C      Dr.  - 2
So by J2IUN you will be paying the duty to Govt , so indirectly you are reversing the duty, since Cenvat Clearing will have now Rs.50 after this entry.
Any how your requirement can be fulfilled by creating a Sub Transaction Type and assigning Account Determination, you will have to explore.
Regards,
Vikas