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CIN Accounting Entries

by on January 7, 2013

Accounting entry in procurement

~ For Domestic Procurement of Raw Material

  During GR

            Material Stock            Dr.

           GR/IR clearing                        Cr.

 During Excise Invoice Credit            

            Cenvat Account          Dr.

            Cenvat Clearing                     Cr.

  During Invoice Verification

             Cenvat Clearing         Dr.

            GR/IR Clearing           Dr.

            Vendor Payable                      Cr. 

For Domestic proceurement of Capital Goods

  During GR

             Material Stock            Dr.

            GR/IR clearing                        Cr.

  During Excise Invoice Credit            

              Cenvat Account          Dr.       (50%)

              Cenvat On-hold          Dr.       (50%)

              Cenvat Clearing                     Cr.

During Invoice Verification

               Cenvat Clearing         Dr.

                GR/IR Clearing           Dr.

                Vendor Payable                      Cr

Subsequent of Capital Goods

                 Cenvat Account          Dr.       (50%)

                Cenvat On-hold                      Cr.       (50%) 

For Import Procurement of Raw Material
                       

   During Customs Duty Clearing invoice

              Custom Clearing         Dr.

              Custom Payable                      Cr.

   During GR

                Material Stock            Dr.

                 GR/IR clearing                        Cr.

   During Excise Invoice Credit            

                Cenvat Account          Dr.      

                Custom Clearing                   

During Invoice Verification

                GR/IR Clearing           Dr.

                Vendor Payable                      Cr.

 For Excise Duty Credit of Raw Material without PO
                       

               Cenvat Account          Dr.      

              Cenvat Clearing                     Cr. 

 For Excise Duty Reversal through Excise JV
                       

              Cenvat Clearing         Dr.      

              Cenvat Account                      Cr.

Accounting entry when the goods are issued through MM and Excise invoice is Credited(J1IS &J1IV)

During Excise Invoice Creation

             Cenvat Suspense Account       Dr.

             Cenvat payable                                   Cr.

 For TR6C Challan

PLA Account               Dr.

PLA on hold Account              Cr.

 During Fortnightly  Utilization

Cenvat payable           Dr.

Cenvat Account                       Cr.

PLA Account                           Cr. 
Note: Cenvat Suspense Account should be cleared apprpiately using FI JV’s.

Accounting Entry in subcontracting reversal/Recredit

For Subcontracting Challan Reversal
     Cenvat Reversal          Dr.

     Cenvat Account                      Cr.

For Subcontracting Challan Recredit

      Cenvat Account          Dr.

      Cenvat Reversal                      Cr.

Accounting Entry in SD

For  Factory Sale During Billing Document

      Customer Account                  Dr.

      Sales Account                                      Cr.

       Cenvat Suspense Account                   Cr.

 During Excise Invoice Creation

       Cenvat Suspense Account       Dr.

       Cenvat payable                                   Cr.

 For TR6C Challan

PLA Account               Dr.

PLA on hold Account              Cr.

 During Fortnightly  Utilization

Cenvat payable           Dr.

Cenvat Account                       Cr.

PLA Account                           Cr. 

For  Stock Transfer through SD

No Accounting entries for Performa Billing Document
 During Excise Invoice Creation

    Cenvat Suspense Account       Dr.

    Cenvat payable                                   Cr.

 For TR6C Challan

PLA Account               Dr.

PLA on hold Account              Cr.

 During Fortnightly  Utilization

Cenvat payable           Dr.

Cenvat Account                       Cr.

PLA Account                           Cr. 
Note: Cenvat Suspense Account should be cleared appropriately using FI JV’s.

From → SAP-CIN

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