1.MIGO -> Return delivery-movement type 122
2. J1IS u2013 Excise Invoice Other Movements,
3. J1IV - Post and Print Outgoing Excise Invoice
4. MIRO - Credit memo WRT original Purchase Order
Activate &SAP_EDIT in SE16N (SAP ECC 6.0 EHP6)
In SAP ECC 6.0 EHP6, the function code
&SAP_EDIT, which enables the change mode of transaction SE16N, is deactivated (SAP Note 1420281) due to security breaches that were detected. In order to activate it (temporarily), follow the steps below:- Go to SE16N, as usual, and type the table for which you want to make modifications.
- Instead of typing
&SAP_EDITin the command field, type/Hand press “Enter” key to activate debugging. - Press F8 key to enter the data browser for the above table.
- While in debugging mode, enter the two variables GD-EDIT and GD-SAPEDIT and press “Enter” key.
- For each variable, click on the change button, change the value to an uppercase “X” and press “Enter” key.
- Press F8 key to exit debugging and enter the table in change mode.
SD Accounting Entries
INVOICE GENERATION
Invoices will be generated at the Smelters and stock points. The accounting entries for the sale of goods despatched will flow from the Sales invoice generated in SAP Sales and Distribution module. The following entries shall be passed
Customer Account Dr
Revenue Cr
Excise Duty Payable Cr
Sales Tax Payable (local or central) Cr
Note: As mentioned above in the FI document, which is created in the background, the SD invoice number shall be captured. However as per the current accounting procedure the accounting entry passed is as follows :-
Customer Account Dr
Revenue Cr
Excise Duty Billed Cr
Sales Tax Payable (local or central) Cr
Excise duty paid a/c Dr
Excise duty payable a/c Cr
EXPORT SALES
There have been very few export transactions in the past. SAP system will be designed to handle export business. Exports are mainly from the mines and will be handled at the mines, however the documentation part will be taken care at the Head Office. The accounting entry is:
Customer Account Dr
Revenue (Exports) Cr
The realisation of export sales will be directly credited to the bank. The accounting entries will be as follow:
Bank Dr
Customer Cr
Exchange Fluctuation Dr/ Cr
The accounting entries will be:
Rebates/Discounts Dr
Customer Cr
DEBIT MEMOS
Debit Memos shall be issued in case of price difference, sale tax difference and interest on usance period and overdue payments.
The accounting entries for two possible scenarios are as follows:
Price Undercharged:
Customer Account Dr.
Revenue Cr.
Sales tax payable Cr.
Sales tax undercharged
Customer Account Dr.
Sales tax adjustment Cr.
Interest on delayed payments/usance period and other charges
Customer Account Dr.
Interest Others Cr.
In case of HZL a complete retirement or a partial retirement of asset is done. The system uses the asset retirement date to determine the amount to be charged off for each depreciation area. The existing accounting policy is to provide depreciation for the full quarter in which the asset is sold/discarded, recommended that the depreciation be provided from the date of acquisition on prorata basis .
Accounting entry for sale of Asset to customers:
Customer Account Dr
Asset Sale Cr
Accumulated Depreciation Dr
Loss on Sale (if applicable) Dr
Asset Sale account Dr
Asset account Cr
Profit on sale (if applicable) Cr
Note: In case of any Sales Tax /Excise duty applicable for this transaction, SAP will calculate the Sales Tax/Excise Duty based on the Tax Code selected the entry is posted to the GL Account (Sales Tax Payable)
Accounting entry for sale without a customer:
Accumulated Depreciation Dr
Loss on Sale (if applicable) Dr
Asset Sale account Dr
Asset account Cr
Profit on sale (if applicable) Cr
Accounting entry for scrap
Accumulated Depreciation Dr
Loss on Sale of Assets Dr
Asset account Cr
SALE OF SCRAP
The sale of scrap (non-stock) shall be mapped as a direct manual FI entry. The customer will be created as a FI customer. No Logistics module will be involved in the process.
A FI Invoice will be prepared for the sale of scrap with the following entries:
Customer Dr
Sale of Scrap Cr
Excise Duty Payable Cr
ADVANCES FROM CUSTOMERS
Advances are received from the customers against delivery. These advances will be recorded in a special general ledger account. The accounting entry for the same will be:
Bank Account Dr
Advance Customer Payments Cr
These advances will be later on adjusted against the invoices raised on the customers. Advances can be adjusted against more than one invoice at the time of clearing of the invoices against advances.
Adjustment of Advances
Customer Account Cr
Advance Customer Payments Dr
A financial document would be created for each Bank Guarantee received and this document number will be referred to in the Sales Order which would then monitor the value and the validity of the of the Bank Guarantee instrument wise while doing the billing.The letter of credit /Bank guarantee given will be recorded as a noted item.
Accounting Entry for Goods receipt
Stock/Inventory account Dr
GR/IR account Cr
Freight clearing account Cr
Accounting Entry on invoice verification of supplier
GR/IR Dr
Vendor account Cr
Accounting Entry on invoice verification of freight vendor
Freight clearing account Dr
Freight Vendor account Cr
GOODS RECEIPT
Based on the Purchase order and the Quantity actually received Goods Receipts (GR) will be done. Based on the GR done the following accounting entry will be passed in the Financial Accounts
RM/PM Stock Account Dr
GR/IR Account Cr
Freight Clearing Account Cr
EXCISE INVOICE VERIFICATION
On receipt of the excise invoice cum gate pass the following entry will be passed
RG 23 A / RG 23 C Part 2 Account Dr
Cenvat Clearing Account Cr
CIN-Register RG 23A and 23C
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, Parts I and II (for raw materials)
- Register RG 23C, Parts I and II (for Capital goods)
- Register RG 23D (applicable only to Ist or IInd stage dealers)
- Personal Ledger Account (PLA)
Besides, ER-3 (formerly RT-12) returns have to be filed monthly (or quarterly for SSIs).
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 two 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
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