Part I and II entries

Question

Hi,
Can anyone explain me part I, II entries in excise registers?
regards
B Shar

Answer 1

Hi
Introduction
CIN means Country Version India comes with functions for calculating, posting, remitting, and reporting excise duty, and for handling incoming and outgoing excise invoices.
Country Version India offers two ways of calculating excise duty, condition-based calculation procedures (TAXINN) and formula-based calculation procedures (TAXINJ). TAXINN is only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise determination.
As per Indian Law, the excise authorities require you to maintain the following registers relating to excise duty.
Register RG 1
Register RG 23A and 23C, Parts I and II
Register RG 23D
Personal Ledger Account (PLA)
Register RT-12
Register RG 23A and 23C
When the ordered materials arrive, you post the goods receipt and the excise invoice. The R/3 system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice.
A record of all receipts and issues related to excisable materials is being kept in excise register in RG 23A (Raw Material) and RG 23C (Capital goods) by manufacturing plants. The register consists of two parts:
Part I shows the quantities of the materials.
Part II shows the amounts of excise duty on the materials, and how much you have transferred to the CENVAT accounts.
Part I Entries
When you enter a goods receipt for excisable materials, the system automatically asks you if you want to create the Part I entry in Register RG 23A or RG 23C. If so, the system generates a Part I entry. If not, it does not, but you can generate all missing Part I entries later.
In the following to cases, the system does not automatically generate Part I entries for goods issues of excisable materials;
A goods issue for vendor returns
A goods issue for stock transport orders for plants (in case of Goods Movements transaction only)
Part II Entries
The system automatically creates an entry in Part II of the appropriate register in case of posting of an incoming excise invoice, or an outgoing excise invoice. All Part II entries are serially numbered. An accounting document for each posting is created by the system to transfer the various types of excise duty to the appropriate CENVAT account.
CENVAT Document
A CENVAT document is an accounting document that the system automatically creates when it generates a Part II entry. The following accounting entry passed in case of Part II entry generation
For an incoming excise invoice;
    Account                         Debit                 Credit
    Basic Excise Duty               1500.00
    CENVAT Clearing Account                       1500.00
The excise duty is cleared from the clearing account on entering of vendor invoice.
For an outgoing excise invoice;
   Account                          Debit                 Credit
   CENVAT Suspense Account          1700
   Basic Excise Duty                                   1500
   PLA                                                         200
Reward if it helps
regards
rb