FI consultant steps in CIN configuration:

1.Activate Country version India for Specific Fiscal Years

2.Check calculation procedure
3.Assign country to calculation procedure
4.Check and change settings for tax processing
5.Define tax accounts
6.Assign tax code to Non taxable Transactions
7.Maintain excise Registrations
8.Maintain company code settings
9.Maintain Plant settings
10.Maintain Excise Groups
11.Maintain serious Groups
12.Maintain excise duty indicators
13.Maintain postal Addresses
14.Select tax calculation procedure
15.Maintain excise defaults
16.Define tax code for Purchasing documents
17.Assign tax code to company codes
18.Classify condition types
19.Define G/L Accounts for taxes
20.Specify excise accounts per excise transaction
21.Specify G/L accounts per Excise Transaction
22.Assign billing types to Delivery types
23.Maintain default excise groups and series groups
24.Utilization Determination
25.Maintain Minimum balance for excise accounts
26.Specity Sap script forms
27.Number Ranges
28.Excise Rate Maintenance
29. GL Master creation like Cenvat hold a/c , Cenvat clearing
a/c , Cenvat suspense a/c ,PLA A/C, VAT Payable a/c , RG23A
BED A/C, RG23C BED A/C, VAT Payable a/c , VAT Receivable
a/c .
30. Assignment of accounts for automatic postings T code:
VKOA ( EX: CENVAT A/C SUSPENSE )

Step by Step Reference Guide to SAP (CIN) FI Excise Duty Procedures

Excise duty in SAP is a special function designed for India according to local requirements
under Country India Version (CIN) template. In this document you will read various
processes related to Excise of following procedures with screenshots:
TR6 Challan Creation J1IH
CENVAT Utilization J2IUN
Registers Updation (RG1, RG23) J1I5
Registers Extraction J2I5
CENVAT Register J2I9
ER1 Report J2IER1
Overview
The trigger for this transaction is the requirement to
pay the TR6 Challan

Business Process Overview

TR6 Challan Payment Process
Input Required

Output
/Results

Fields Field Value /

Comments

Comments

Excise Process
TR6 Challan Creation
PROCEDURAL STEPS

General Ledger Document Creation (FB50)

System does not update the PLA Register with the above entry. When you update the TR6
Challan updating process, the system will update the PLA Register and PLA Account and
reverse the PLA on Hold Account.

Invoice to Tax Authority (FB60/F-43)

In this activity, you debit the PLA Interim Clearing Account so that the same is nullified and
credit the Tax Authority for the payment of PLA.

Payment to Tax Authority (F-58)

In this activity, the Cheque has been issued to the Tax Authorities/Bank.

TR6 Challan Posting

India Localization
Menu
Transaction Code

Indirect Taxes Excise JV Create

J1IH

On Excise JV Main Menu, select the TR6 Challan Tab. Once you click on the TR6 Challan.

You have to enter the GL Document created in the 1 st step, Document Year, Company Code,
Plant and Excise Group for which the PLA Payment is being made.
Press Enter.

You can observe that the PLA on Hold Account is getting credited which was 1st debited in
the GL Account Document creation.Enter the PLA BED, PLA EduCess & PLA SHECess
amounts to debit the same.

After filling the required amounts post the document. Once you save the document, the
following line will appear at the bottom of the sap screen.

You can view the same by clicking on the > Main Menu > Excise JV > Display and fill
the following:

Click on the Accounting Document Tab:

The Result of the above document is: The PLA on Hold Account has been nullified & PLA
BED, PLA EduCess & PLA SHECess has been debited.
PROCESS TITLE: CENVAT Utilization
Process Overview
The trigger for this transaction is the requirement of CENVAT Utilization. It is
used to calculate
how much Excise Duty you must remit to the authorities. Legislation requires
you to remit
excise duty monthly. Companies are allowed 5 days to remit excise duty
except for the Month of March
Once the report has determined how much you have to pay, it allows you to
specify where
money should be paid from i.e. whether it should be deducted from the
CENVAT credits that
you have accumulated in RG23A Register or RG23C Register, or whether it
should be deducted
from the Personal Ledger Account (PLA). You have the option of selecting the
appropriation
amounts as required.
Prerequisites: User must be assigned to the Country India Specific Menu i.e.
J1ILN. Excise
Invoices must be posted in the System to arrive the CENVAT Payable for
deliveries made from
the Factory. The CENVAT Payable amount should be credited to a Clearing
Account as a
Liability. At the time of Utilization of CENVAT, the system will post the Debit
entry to the
same account based on the Account assignments in the Customization.

Utilization of CENVAT (J2IUN)

In the above screen, you have to input the following: Sub Transaction Type

ADC Sub Transaction Type

Excise Invoice Selection

Period: It is the period of all the Excise Invoices for which you are running a Utilization
Entry.
Excise Invoice: You can restrict the selection of Invoices here by selecting them in Exclude
Single Invoice or Invoice Range.

Business Area: This is below the Plant Level. Note: There is no multiple Business Area
selection in this field & the filling of Business Area is compulsory otherwise the GL Entry is
not possible.
Display Last Utilization Date Tab: It shows you when the last Utilization was made. The
next utilization can be done only if you put a date which is next to the last Utilized Date.
Display Pending Invoices: It shows the pending invoice to be selected in this Utilization
Run.(Including the Invoices given in the Excise Invoice Selection Restriction Field - Excise
Invoice)
Once you have input all the Necessary Fields, you will see the following screen:

Now select the Duty which you want to adjust against the available credit, and select on
select duty view button, you can view the concerned Duty Credit Available in related Excise
Registers as well asthe Amount available in PLA for the same will appear as shown below:
In the above, screen the Registers Balance in RG23A BED is available so you can utilize it
for thepayment of Excise Duty otherwise you have to use the balance available in PLA
Register also.Youhave to utilize it as follows:

After selecting the ECS Duty, click on the

concerned
Balances Availability, the following screen appears:

button to view the

Enter the Duty as applicable.

After selecting the ECS Duty, click on the

button
to view the concernedBalances Availability, the following screen
appears:

Click on
the following screen appears where you can check the
accuracy of the Accounts and then post the same.

Once you save the above entry, the following message appears at
the bottom of the SAP Screen.

You can view the Accounting Document through FB03.

In the above document, one can observe that the CENVAT Credit/Availed Accounts have
been
credited and the CENVAT Payable Accounts have been debited.

Configure Tax on Sales and Purchases

Introduction To Tax Configurations In SAP
Tax configurations are done in SAP at the country level. This is because all businesses in the
same country need to follow the same taxation policies and generally accepted accounting
principles while preparing their financial statements. Therefore, tax configurations in SAP are
done for each country. Any company code which is then created in that country can then
automatically use the tax configuration that is done for that country. So tax configurations
need not be done for each and every company code again and again. This saves the effort
required to carry out the tax configurations for every company code separately.
SAP allows the tax rates to be defined internally or the tax rates may be fetched from an
external taxation system like Vertex. The tax configurations are stored in SAP in the form of
tax calculation procedures and tax codes. These procedures can then be assigned to different
countries. These procedures then become available to any company code which is created in
that country.
The tax rates are provided by the tax codes are the different tax types while the method of
calculation is defined in the tax calculation procedure. SAP allows the following taxes to be
processed while posting documents:

Tax on sales and purchases.

Additional taxes like VAT which our country specific.

Sales and Use tax as in USA.

Withholding tax like income tax in India.

Concept Of Tax Jurisdictions

Tax jurisdictions represent the government authorities to which the taxes are paid. SAP
allows up to 4 levels of tax jurisdictions representing state, county, city and others. The tax
jurisdiction structure needs to be defined before the tax jurisdictions can be created in SAP.
As mentioned before, the tax jurisdiction structure can have four levels. The tax jurisdiction
structure defines the length of characters which will be used to represent each level in the tax
jurisdiction code. The tax jurisdiction code structure needs to be defined for every tax
calculation procedure.
Once the tax jurisdiction code structure has been defined, the next step is to create the actual
tax jurisdiction codes. The tax jurisdiction codes need to be created for every government
authority to which the tax needs to be paid.

Assign Tax Procedure To Country

Step 1: The tax configuration details are stored in the tax procedure. The first step is to assign
the tax procedure to the country in which the company code exists. Navigate to the
Implementation Guide menu path as shown below or execute the transaction code OBBG.

Step 2: Position to the country to which the tax calculation procedure is to be assigned and
enter the tax calculation procedure details as shown in the screenshot below.

Step 3: Click on the save button to save the changes. A success message showing that the
changes have been saved is displayed.

Define The Tax Jurisdiction Code Structure

Step 1:Navigate to the implementation guide menu path as shown in the screenshot below or
execute the transaction code OBCO from the SAP easy access menu.

Step 2: Select the tax procedure for which the tax jurisdiction code structure needs to be
defined and enter the length for the various jurisdiction levels as shown in the screenshot
below. The length chosen should be sufficiently large to accommodate enough tax
jurisdiction codes as per the requirement. For e.g. the first level represents the state. If the
number of states is large then it is better to have a four letter key to represent it rather than
having a two letter key. This is because the number of combinations possible with a four
letter key will be much more than those possible with the two letter key.

Step 3: Click on the save button to save the changes. A success message indicating that the
changes have been saved is displayed.

Define The Tax Jurisdiction Codes

Step 1:Navigate to the implementation guide menu path as shown below or execute the
transaction code OBCP from the SAP easy access menu.

Step 2: Enter the work area details in the pop-up as shown in the screenshot below and click
on the continue button.

Step 3: Enter the tax jurisdiction code and its description as shown in the screenshot below.
On the basis of the configuration for the tax jurisdiction code structure, the first two letters of
the tax jurisdiction code will represent the state, the next three letters will represent the
county, and the next four letters will represent the city. Therefore, every tax jurisdiction code
will be nine characters long. It will be possible to determine the correct taxing authority on
the basis of the tax the jurisdiction code described above.

Step 4: Click on the save button to save the new tax jurisdiction code. A success message
indicating that the new tax jurisdiction code has been saved is displayed.

Define Tax Codes

The tax codes are defined for each and every country. The tax codes contain the actual rates
to be used while calculating the tax on the basis of the tax calculation procedure. Each
country can have multiple tax codes for different types of taxes like input tax sales and
purchases, output tax on sales and purchases, etc.
Step 1:Navigate to the Implementation Guide menu path as shown in the screenshot below or
execute the transaction code FTXP from the SAP Easy Access menu.

Step 2: Enter the country in the pop -up as shown in the screenshot below and click on the
continue button.

Step 3: Enter the tax jurisdiction code and the other details on the screen as shown in the
screenshot below and press the Enter key. The tax code represents the type of the tax for
which the rates are going to be maintained.

Step 4: Enter the tax rates as shown in the screenshot below. These tax rates can be used to
calculate the tax while posting a document in SAP. The method of calculation will be
determined on the basis of the tax calculation procedure.

Step 5: Click the save button to save the changes. A success message indicating that the
changes have been saved is displayed.

CIN -SAP T CODES

by Jayanth Maydipalle on December 20, 2012

Transaction
J1I2
J1I3
J1I5
J1IEX
J1IEX_C
J1IEX_P
J1IF01
J1IF11
J1IF12
J1IF13
J1IFQ
J1IFR
J1IH
J1IIN
J1IJ
J1INJV
J1INREP
J1IQ
J1IR
J1IS
J1IU
J1IW
J1IX
J2I8
J2IU
J2I9
J1IG
J1IGA
J2I5
J2I6

Action
Prepare a sales tax register
Create outgoing excise invoices in batches
Update the RG 1 and Part I registers
Incoming Excise Invoices (central transaction)
Capture an incoming excise invoice (excise clerk)
Post an incoming excise invoice (excise supervisor)
Create a subcontracting challan
Change a subcontracting challan
Display a subcontracting challan
Complete, reverse, or recredit a subcontracting challan
Reconcile quantities for subcontracting challans
List subcontracting challans
Make a CENVAT adjustment posting
Create an outgoing excise invoice
Assign excise invoices to a delivery for sales from depots
Adjust withholding tax Item
Reprint a withholding tax certificate for a vendor
Year-End Income Tax Depreciation Report
Download register data
Process an excise invoice (outgoing) for other movements
Process exemption forms
Verify and post an incoming excise invoice
Create an incoming excise invoice (without reference to purchase
order)
Transfer excise duty to CENVAT account
Remit excise duty fortnightly
Monthly CENVAT return
Excise invoice entry at depot
Create additional excise entry at depot
Extract data for excise registers
Print excise registers

SAP CIN : HOW TO SPECIFY G/L ACCOUNT PER EXCISE

TRANSACTION ?

STEP 1: Following is the path For SPECIFY G/L ACCOUNT PER EXCISE TRANSACTION

IMG activity path :IMG >LOGISTIC GENERAL > TAX ON GOODS MOVEMENT >
INDIA > ACCOUNT DETERMINATION > SPECIFY G/L ACCOUNT PER EXCISE
TRANSACTION

Transaction code : SPRO

STEP 2 : Click on execute button to SPECIFY G/L ACCOUNT PER EXCISE

TRANSACTION , Following type screen will open

STEP 3 : Then Click on New Entry , Following type screen will open

STEP 4 : Update the Data

OFFSET : Records the excise duty calculated at the

time of invoice verification. The values in this account and the CENVAT
clearing account are balanced if there is no difference in the excise amounts at
goods receipt and invoice verification. The values in this account and the CENVAT
clearing account are compared after invoice verification.
MODVAT CLEARING : The G/L account for Modvat Clearing is used to post the
excise amount at the time of Goods Receipt in case of material for which Modvat
can be availed. The values in the Modvat Clearing account and the Modvat Offset
Account are compared after invoice verification. At GR, the Modvat amount is
posted as follows:

Modvat Plant A/c

To Modvat Clearing A/c.

GL ACCOUNT FOR PLA BED : The Personal Ledger Account (PLA) has the value of
funds deposited with the central government into the Bank Account nominated by
them. The funds in the PLA account are used exclusively for the payment of excise
duty. The fund in either the PLA Account or the RG23A account or the RG23C
account are used for payment of excise duty at sales invoicing.
CENVAT ON HOLD : Records any CENVAT that is temporarily not available and
therefore on hold until certain conditions are met. Countervailing duty paid on
imports is not available for utilization until receipt of the goods. On receipt of
goods, the relevant duty is to be transferred to the appropriate CENVAT account of
the plant.
CENVAT SUSPENSE : Records excise duty from sales documents. The excise duty is
subsequently paid from the CENVAT RG 23A, RG23C, or personal ledger accounts.
PLA ON HOLD : Cheques deposited, into the PLA Account maintained with the
bank, are posted to this general ledger account initially, pending realization. The
balance in this account is not available for payment of excise duty on dispatches
until the intimation of realization of cheque is received from the bank.
Subsequently, the realized amounts are transferred to the GL account for
PLA maintained for the plant.
CENVAT REVERSAL : Reversal amount of the CENVAT is deposited in this G/L
Account.

STEP 5 : Click on Save Button to store Configured data

Nature of Excise related GL accounts

As these are Clearing /reconcilation accounts , no matter whether these are asset accounts or
liabilities account as at the year end activity you have clear these for finalise your balance sheet.
Even you have some balance as at the end, you have to transfer these balances to either Excise
receivable account (Current Asset ) or Excise payable account(current Liability). But still for mid
year balance sheet or trial balance you can define these account as following.
Cenvat suspense a/c - balance sheet account (Current Liablities)-As agianst this liability you
have pay at the period end.As you have collected the excise agaisnt sale, no matter you have
collected the money from custmoer or not .Utimataly the balance of this account is going to
trnasfer to Excise duty payable account after cration of Billing document.
Modvat clearing a/c - balance sheet account (Current Assets)-As this receivable balance menas
you have paid or received credit from vendor , this is going to trnasfer to cenvat BED receivable
account after J1IEX transaction.
Cenvat Reversal a/c - balance sheet account (Current Assets)- If it is for Cancellation of J1IEX , it
should be Current Liabilities as you have availed cenvat and now you have to pay that or
minimise the cenvat BED receivable account by this much amount.
If it is in case of reversal of billing document , it is current asset as your liabiliy has increase when
you have created billing document , now reverasal means you are minimising the cenvat payable
account by this much account.

What is Personal Ledger Account or PLA? How is it maintained?

Personal ledger Account is an account with the Central Government, which is utilized for
payment of duty of excise. The account is credited when the sum is deposited into the
treasury and debited on payment of excise duty. Each debit and credit entry should be made
on separate lines and assigned a running serial number for the financial year. The PLA must
be prepared in triplicate by writing with an indelible pencil and using double sided
carbon.Original and duplicate copies of PLA shall be sent to the Central Excise Officer in
chargealong with the monthly/quarterly return.
The assessee may make credit in the PLA by making cash payment into the treasury or
authorised bank through TR-6 challan. Copy of each such challan shall be sent by the
assessee to the Central Excise Officer along with the monthly/quarterly return.
No restrictions exist with regard to any minimum amount, which should necessarily remain in
balance to the credit of an assessee in his PLA. With the monthly payment system, there
should be enough credit at the time of payment of duty for the month.

Mutilations or erasures of entries once made in the PLA are not allowed. If any correction
becomes necessary, the original entry should be scored out and attested by the assessee or his
authorized agent.
in SAP Scenario:
Personal ledger Account is a register, which is used to pay excise duty liability to the
government . In Sap the process as followed is:
1.You pay the PLA through T Code F-02 through PLA on Hold A/c. The Accounting entry is:
PLA on Hold Dr
Bank

Cr

or
Excise Duty Deposit Dr
Bank A/c

Cr

2. Create excise JV with Transaction code J1IH in TR6. The accounting entry is
PLA A/c
PLA on Hold

Dr
Cr

Or
Excise Duty Paid

Dr

Excise Duty Deposit Cr

3. Now run the utilization
Excise Duty Payable
Excise Duty Credit A/c

Dr
Cr

PLA A/c
Service Tax Credit A/c

Cr
Cr

Suppose in a particular month excise liablity is $ 100 but in CENVAT A/c $60 only balance
$40 we liable to pay cash/bank in pla account through GAR-7
General Scenario:
When any company or manufacturer buys his good from supplier, supplier has to get his
money and excise duty on these goods. After its production, when manufacturer sells these
goods to his customers and distributors, he will get his money and excise duty. On this
received excised duty, he will get the power ofexcise credit on his purchased goods under
Cenvat Act. It means, he will deduct his total paid or payable excise duty from total received
or receivable excise duty and balance, he will deposit in Govt. account. It is just same like

VAT rules. Following are the main journal entries which are relating to excise or excise
duty.In the Books of Manufacturer1. When we purchase goods with Excise duty on
Purchase
Inventory Raw material A/c Dr $1000
Excise Duty on Purchase A/c Dr $200
Creditor A/c Cr $1200
2. When we sell goods with Excise duty on Sale
Debtor A/c Dr $1750
Sale A/c Cr $1500
Excise Duty on Sale $Cr 250
3. When Excise Duty Paid in Advance
Excise Duty in Advance Dr $20
Bank Account of Govt. Cr $20
4. Excess of Excise duty on sale over excise duty on purchase and excise duty in advance
will be payable to Govt.
Excise Duty on Sale A/c Dr $250
Excise Duty on Purchase A/c Cr $200
Excise Duty in Advance Cr $. 20
* PLA Credit $30
5. When Excise duty is paid in Govt. Account
* PLA Debit $30
Bank Account of Govt. Credit $30
As per SAP SD Scenario:
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.

As per SAP MM Scenario:

For Domestic Procurement of Raw Material
During GR
Material Stock

Dr.

GR/IR clearing

Cr.

During Excise Invoice Credit

Cenvat Account
Cenvat Clearing

Dr.
Cr.

During Invoice Verification

Cenvat Clearing

Dr.

GR/IR Clearing

Dr.

Vendor Payable

Cr.

For Domestic procurement 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
GR/IR Clearing
Vendor Payable

Dr.
Dr.
Cr

Subsequent of Capital Goods

Cenvat Account
Cenvat On-hold

Dr.

(50%)

Cr.

For Import Procurement of Raw Material

During Customs Duty Clearing invoice
Custom Clearing
Custom Payable

Dr.
Cr.

During GR
Material Stock

Dr.

GR/IR clearing

Cr.

During Excise Invoice Credit

Cenvat Account

Dr.

Custom Clearing

Cr.

During Invoice Verification

GR/IR Clearing
Vendor Payable

Dr.
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 created
(J1IS & J1IV)
For Subcontracting Challan Reversal
Cenvat Reversal
Dr.
Cenvat Account

Cr.

For Subcontracting Challan Recredit

Cenvat Account
Cenvat Reversal

Dr.
Cr.

PLA is Personal Ledger Account. It is used for payment of Excist tax liability by depositing
amount into that account.
PLA on hold account is used as a temporary account for posting the money transfer to your PLA
account. when you post a journal voucher, it will get debited to your PLA on hold account and
later on through Tcode J1IH, you can allocate the amount posted in the on-hold account to
different tax payable components like basic duty, cess, etc.
PLA - Personal Ledger Account
This is used for TR6 challan posting with PLA register updating.
You follow this procedure to make a posting when you transfer money to your personal ledger
account (PLA) and to update the PLA Register. When you post Financial Accounting Document
system shall not update the PLA Register. Hence while posting Financial Accounting post PLA to
a clearing account i.e. PLA on Hold account. When you update the TR6 Challan updation
process system will update the PLA Register and PLA account and reverse the PLA on Hold
Account

First post the amount in FB50, the entry should be

PLA on Hold A/c Dr
Bank Outgoing A/c Cr
Then in J1IH, click on TR6 challan, after that give the accounting doc no, plant, Excise group and
other details, and enter the line items as
PLA BED Dr
PLA AED Dr
PLA ECess Dr
PLA SEcess Dr

PLA on Hold Cr
Check this and revert back.

Personal ledger Account is an account with the Central Government, which is utilized for
payment of duty of excise. The account is credited when the sum is deposited into the
treasury and debited on payment of excise duty. Each debit and credit entry should be made
on separate lines and assigned a running serial number for the financial year. The PLA must
be prepared in triplicate by writing with an indelible pencil and using double sided
carbon.Original and duplicate copies of PLA shall be sent to the Central Excise Officer in
chargealong with the monthly/quarterly return.
The assessee may make credit in the PLA by making cash payment into the treasury or
authorised bank through TR-6 challan. Copy of each such challan shall be sent by the
assessee to the Central Excise Officer along with the monthly/quarterly return.
No restrictions exist with regard to any minimum amount, which should necessarily remain in
balance to the credit of an assessee in his PLA. With the monthly payment system, there
should be enough credit at the time of payment of duty for the month.
Mutilations or erasures of entries once made in the PLA are not allowed. If any correction
becomes necessary, the original entry should be scored out and attested by the assessee or his
authorized agent.
in SAP Scenario:
Personal ledger Account is a register, which is used to pay excise duty liability to the
government . In Sap the process as followed is:
1.You pay the PLA through T Code F-02 through PLA on Hold A/c. The Accounting entry is:
PLA on Hold Dr
Bank

Cr

or
Excise Duty Deposit Dr
Bank A/c

Cr

2. Create excise JV with Transaction code J1IH in TR6. The accounting entry is
PLA A/c
PLA on Hold

Dr
Cr

Or
Excise Duty Paid

Dr

Excise Duty Deposit Cr

3. Now run the utilization

Excise Duty Payable

Excise Duty Credit A/c

Dr
Cr

PLA A/c
Service Tax Credit A/c

Cr
Cr

Suppose in a particular month excise liablity is $ 100 but in CENVAT A/c $60 only balance
$40 we liable to pay cash/bank in pla account through GAR-7
General Scenario:
When any company or manufacturer buys his good from supplier, supplier has to get his
money and excise duty on these goods. After its production, when manufacturer sells these
goods to his customers and distributors, he will get his money and excise duty. On this
received excised duty, he will get the power ofexcise credit on his purchased goods under
Cenvat Act. It means, he will deduct his total paid or payable excise duty from total received
or receivable excise duty and balance, he will deposit in Govt. account. It is just same like
VAT rules. Following are the main journal entries which are relating to excise or excise
duty.In the Books of Manufacturer1. When we purchase goods with Excise duty on
Purchase
Inventory Raw material A/c Dr $1000
Excise Duty on Purchase A/c Dr $200
Creditor A/c Cr $1200
2. When we sell goods with Excise duty on Sale
Debtor A/c Dr $1750
Sale A/c Cr $1500
Excise Duty on Sale $Cr 250
3. When Excise Duty Paid in Advance
Excise Duty in Advance Dr $20
Bank Account of Govt. Cr $20
4. Excess of Excise duty on sale over excise duty on purchase and excise duty in advance
will be payable to Govt.
Excise Duty on Sale A/c Dr $250
Excise Duty on Purchase A/c Cr $200
Excise Duty in Advance Cr $. 20
* PLA Credit $30
5. When Excise duty is paid in Govt. Account
* PLA Debit $30
Bank Account of Govt. Credit $30
As per SAP SD Scenario:

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.

As per SAP MM Scenario:

For Domestic Procurement of Raw Material
During GR
Material Stock

Dr.

GR/IR clearing

Cr.

During Excise Invoice Credit

Cenvat Account
Cenvat Clearing

Dr.
Cr.

During Invoice Verification

Cenvat Clearing
GR/IR Clearing

Dr.
Dr.

Vendor Payable

Cr.

For Domestic procurement 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
GR/IR Clearing
Vendor Payable

Dr.
Dr.
Cr

Subsequent of Capital Goods

Cenvat Account
Cenvat On-hold

Dr.

(50%)

Cr.

For Import Procurement of Raw Material

During Customs Duty Clearing invoice
Custom Clearing
Custom Payable

Dr.
Cr.

During GR
Material Stock

Dr.

GR/IR clearing

Cr.

During Excise Invoice Credit

Cenvat Account

Dr.

Custom Clearing

Cr.

During Invoice Verification

GR/IR Clearing
Vendor Payable

Dr.
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
Cenvat Account

Dr.
Cr.

Accounting entry when the goods are issued through MM and excise invoice is created
(J1IS & J1IV)
For Subcontracting Challan Reversal
Cenvat Reversal
Dr.
Cenvat Account

Cr.

For Subcontracting Challan Recredit

Cenvat Account
Cenvat Reversal

Dr.
Cr.

RG 1 Register is basically used in related to SD module.

whenevr we do production of material and the consumption of all the materials get updated in
RG1 register.
we use RG1 register at the end of month to check out the monthly consumption of materials
with quantity and production.
RG1 Register records all the Finished goods movement (Receipt & Issues), After doing GRN
for Finished Materials against Production Order, Excise guys need to do J1I5 for
Classification RMA to load the Finished goods quantity as Receivable in RG1 Register, Later
when Sales people do the Sales of this Finished goods, again they need to do J1I5 for the
Issue of this Finished goods from register RG1
RG1 Updation

The sequence is like this:

1. In SE16, enter Table name: J_2IRG1BAL, and click on Create. Enter the material Number
and 'P' in Material form (Loose/Pack indicator) and click 'Save'. This step is to be done only
for the first time.
2. Do your Initial Stock entry in MB1C, movement type 561
2. Go to J1I5, select Posting Date, Document Year and 'ROP in Classification (Receipt from
outside under any other provision). Click on Create icon (Register entry)
4. Go to J2I5 and extract the RG1 Register. You must get a green checkmark.
5. After doing the PFI, go to J1I5, select Posting Date, Document Year and Classification
'IDH' (For domestic sales) or 'IDE' if the first removal is for Export Sale. Based on the
accounting document generated during PGI (MB03) the RG1 Register gets updated with the
removal for Outbound Delivery.
6. Reextract the RG1 register in J2I5. You must get a green checkmark.For the RG1 Register
printout, go to J2I6, select the option, 'Script Form' and hit 'Execute.
Hope this will help u in understanding about j1i5.