Posting of cenvat credit of 50% on capital goods through T.Code:J1IH
Hi
Please advise me the procedure for posting of cenvat credit of 50% on capital goods through T.Code:J1IH.
As a matter of fact, when i tried to post the last year credit of 50% cenvat credit on capital goods the system accepting 50% only.
For example, last year we got Rs.200000 as cenvat credit and out of that 50% credit of Rs.100000 got availed last year. In this year when i tried to avail of remaining of Rs.100000 through transaction code J1IH system is accepting 50% of Rs.100000 i.e only Rs.50000 is accepting.
I look forward for your reply
Thanks and Best Regards
Shekhar
Edited by: Shekhar Yecham on Sep 16, 2008 8:54 PM
Hello,
The settings before 01.04.2010 were same. However, after thorough checking of the GL A/cs, I have following observations -
1) Plant 1 - Balance as on 31.03.2010 in Cenvat on Hold A/c -Rs. 195080. It is upload balance & t.code used is FBVB
There are some more transctions in this A/c which are reversed due to wrong entries.
Balance in Excise Duty RG 23 C as on 31.03.2010 - NIL
2) Plant 2 - Balance in Cenvat on Hold A/c as on 31.03.2010 is Rs. 166701. Again this is an upload balance with FBVB
Balance in Excise Duty RG 23 C as on 31.03.2010 - Rs. 56931.62
3) Plant 3 - No upload balance. All the transactions are routed through J1IEX except 1 from FB01
Balance as on 31.03.2010 - Cenvat On Hold A/c - Rs. 86876.06
ED RG 23C - NIL
Hence, would like to know -
1) Any separate procedure to take the credit of upload entries?
2) If the Balance in ED RG 23C A/c is NIL, will it affect on taking credit?
Thanks & Regards,
Reshma
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50% Credit in VAT for Capital Goods(Assets)
Dear SAP MM Experts,
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BaskarThis is standard behavior of SAP. In case domestic purchase, we can avain 50% CENVAT on additional excise duty (AED).
But in case of Import , we can avail 100% CENVAT for capital goods on additional customs duty (ADC).
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Our client want to process to pass the manual jv against capital goods through T/code J1IH (under addl.excise & RG23C for only part2). After post the doc, they want to process to post the doc for 50% Capital Hold amt (previous yr.) to Capital Goods amt through T/code J2I8. But the line was showing as deactivate mode.
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Edited by: Avijit Barman on Jun 25, 2008 6:28 AMHi Manoj,
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DEAR ALL
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*Assign points if the info is useful -
Cenvat credit on capital goods.
Dear all,
1. There is a rule that the cenvat credit in respect of capital goods shall be allowed for the whole amount of the duty paid on such capital goods in the same financial year if such capital goods are cleared from the factory as such in the same financial year.
2.The system is designed in such a way that the cenvat credit in respect of capital goods received in a factory or in the premises of the duty paid of output service at any point of time in a given financial year shall be taken only for an amount not exceeding fifty per cent. of the duty paid on such capital goods in the same financial year.
Please suggest us how to configure the system for the point no :1
Thanks & Regards,
A.Anandarajan.By standard 50% credit can be taken on first year,If u want to take full credit use transaction J2I8,
Also refer both links
SAP MM CIN Settings
http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/207dd2ad-bf92-2b10-a88b-e3a4a01ca7fc
Capital Procurement in SAP
http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442e6f
Edited by: Jeyakanthan A on Apr 22, 2010 2:01 PM -
Accounting Effect for Capital Goods Purchase
Hi,
Iam using SAP 8.8 PL 13. How does the accounting takes place in case of an Item marked as Fixed Asset in Item Master?
In GL account determination I have assigned Capital Cenvat Credit A/c. for Capital Goods on Hold A/c.
Suppose I purchase an Fixed Asset Item for Rs.10000/- from a Vendor who has also been assigned Asset A/c in BP Master. I have created separate tax code for capital goods. The tax code is BED 10 %.
In Incoming Excise Invoice I get the Following JE effect.
Debit Credit
Capital Cenvat Credit - Rs.10
Capital Cenvat on Education Cess Rs.10
Capital Cenvat Credit Rs.5
Capital Cenvat Credit on HS Cess Rs.5
Capital Cenvat Credit Rs.500
Capital Cenvat Credit Rs.500
Incoming Cenvat Clearing A/c Rs.1030
Can somebody explain how this works?
Rgds
Kalli
Edited by: Kallicharan Nadar on Aug 30, 2010 11:22 AMHi Kalli,
In Administration-> Setup-> Financials-> G/L Account Determination-> Purchaseing Tab-> Tax Sub Tab-> "Capital Goods On Hold Percentage set" - 50 % and set GL in "Capital Goods On Hold Account" once you done these setting. When you are going to make Incoming Excise Invoice transaction that time system is booking 50% excise amount in current year and remaining 50 % will book in next year and same for Cess and ShCess.
Cenvat credit on capital goods is allowed only when it is received in the factory. However, only 50% of the credit may be availed in the financial year when the capital goods are received in the factory and the balance 50% may be availed in any subsequent financial year, provided the capital goods are in the possession of the manufacturer. The Cenvat Credit Rules, 2004, do not impose any condition upon the manufacturer to avail of the credit only when the capital goods are put to use on the commissioning of the plant.
Refer...
http://www.cbec.gov.in/excise/cx-rules-main.htm
Thanks
Sachin -
50% credit on capital goods for previous year is not availed
Dear All,
The go-live date for my client was 01.10.2009. Now, in Apr, 2010 when the client is trying to get the 50% credit on Capital Goods (t. Code j2i8), system is not generating any data of the previous year. (From Oct, 09 to Mar'10). However, if we see the GL Balace for 'Cenvat On Hold A/c' as on 31.03.2010, it shows a balance of Rs. 2.50 lakhs approximately.
Can you please tell me why system is not showing any details through j2i8 for previous year?
Thanks & Regards,
ReshmaHello,
The settings before 01.04.2010 were same. However, after thorough checking of the GL A/cs, I have following observations -
1) Plant 1 - Balance as on 31.03.2010 in Cenvat on Hold A/c -Rs. 195080. It is upload balance & t.code used is FBVB
There are some more transctions in this A/c which are reversed due to wrong entries.
Balance in Excise Duty RG 23 C as on 31.03.2010 - NIL
2) Plant 2 - Balance in Cenvat on Hold A/c as on 31.03.2010 is Rs. 166701. Again this is an upload balance with FBVB
Balance in Excise Duty RG 23 C as on 31.03.2010 - Rs. 56931.62
3) Plant 3 - No upload balance. All the transactions are routed through J1IEX except 1 from FB01
Balance as on 31.03.2010 - Cenvat On Hold A/c - Rs. 86876.06
ED RG 23C - NIL
Hence, would like to know -
1) Any separate procedure to take the credit of upload entries?
2) If the Balance in ED RG 23C A/c is NIL, will it affect on taking credit?
Thanks & Regards,
Reshma -
Capital goods purchase and return
Hi Sap guys,
Can anybody give me the steps of purchasing the capital goods and return of the same.Also give me the steps of debit and credit of cenvat
Best Regards.
SandeepList of Transaction Codes for Purchase of Capital Goods: -
1. ME21N u2013 Create Purchase Order (Acct assmt cat. - "A")
2. MIGO u2013 Goods Receipt against PO
3. J1IEX u2013 Post Excise Invoice
4. MIRO u2013 Enter Vendor Invoice
1. At the time of Goods Receipt of Capital Goods, Asset Account will get debited and GR/IR Clearing Account will get credited.
2. After posting the excise invoice that contains capital goods, the system posts half of the excise duty to u201CCENVAT Receivable accountu201D (Dr) and post the rest to a temporary offset A/c u201CCENVAT on holdu201D (Dr) and Credit CENVAT Clearing Account.
3. At the time of Invoice Verification, Vendor Account will get credited and Clearing Accounts (GR/IR and CENVAT) & VAT Accounts (if required) will get debited.
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1. MR8M - Cancel Vendor Invoice (If Payment is not done)
2. MIGO - Cancellation > Material Doc (GR Doc)
3. J1IEX - Post > Vendor Excise Invoice
4. J1IEX - Cancel > Vendor Excise Invoice
4. MIRO - Credit Memo to Vendor (If Payment is done)
1. At the time of Goods Return of Capital Goods, Asset Account will get credited and GR/IR Clearing Account will get debited.
2. After posting the excise invoice cancellation that contains capital goods, the system posts half of the excise duty to u201CCENVAT Receivable accountu201D (Cr) and post the rest to a temporary offset A/c u201CCENVAT on holdu201D (Cr) and debit CENVAT Clearing Account.
3. At the time of Invoice cancellation, Vendor Account will get debited and Clearing Accounts (GR/IR and CENVAT) & VAT Accounts (if required) will get credited.
In short Reverse all the entries
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ADC Caluculating 100% for Import Capital Good in j1iex part2
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Hello everyone
Now am facing a problem at the posting of Excise Invoice of Import Capital good where BED,ECESS,SCESS are picking 50% and the AED is picking 100% of the value in Part II entries.
but this is correct as per Standard SAP note 930756,my client requirement is to pick only 50% for AED also at the time of part II entires
Please help meHI,
Its not possible in Std.SAP since it is legally allowed take 100% credit on ADC on capital goods in the current year itself.
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Procedure to return Excisable capital goods
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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?
ThanksHi
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.
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Lakshmanan Krishnan -
Capital goods transfer from plant to plant
Dear All,
Is there any possiblity to transfer capital goods through STO in R/3 between 2 purchase organisations and separate palnts under one legal entity.
Best Rgds
Suma
Edited by: Suma Mani on Mar 19, 2009 11:53 AMHi,
Yes you can transfer capital goods from one plant to other plant using STO order from one purchase organization to other purchase organization.
Ask MM to create the STO order for the same & transfer post the material from the sender plant to receiver plant & do GR against the receiving plant.
orelse you can do transfer posting from one plant to other plant using MB1B transaction with movement type 301,309,311 or 415.
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Cenvat credit of Capital goods
Hi,
From the last year 2011, I heard that the cenvat credit for capital goods can be taken 100 % in the first year itself.
How to the make the changes accordingly so that the 100 % tax amount goes to cenvat account instead of posting 50% to cenvat account & 50 % to cenvat on-hold account and then doing J2I8 to transfer of credits from cenvat on-hold account to cenvat account.
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MadhusudanAny solutions??
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Edited by: madhusnb4 on Jan 23, 2012 1:27 PM -
CENVAT CREDIT 100% TAKEN IN CASE AED ON CAPITAL GOODS INSTEAD OF 50%
Hi Experts,
This is with reference to the Cenvat Credit taken on Additional Excise Duty Payable on Capital Goods.
Presently in SAP 100% Cenvat Credit has been taken into 26010713 CENVT CAP GOOD (CAD) but as per law 50% Credit should be taken in the same year in which
Duty has been paid and balance 50% should be taken in next year.
The same treatment has been taken correctly in excise records.
And i want to know only for imported there has been any law change regarding 100% credit should be paid in same year.
Regards,
ManjaxYes, this is std behaviour of the system,as per the law the AED will be allowed to take 100% credit in first finanacial year only.
For more information refer the below link.
http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442e6f?quicklink=index&overridelayout=true -
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.
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How can we claim 100% cenvat credit on capital goods relating ADDl CVD
Due recent changes in Excise Law we can claim 100% Cenvat credit on ADDL CVD. But as per the present Oracle India Financial set ups it is not possible to claim 100% on capital goods in the same year.
Hi,
First of all, As per our country legal and statutory requirments, we can not utilize 100% CENVAT in the same FY.
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