1.

Scenarios

Inter Factory movements: RM

Exciseable plant to another Exciseable plant to non - exciseable plant Non exciseable plant to exciseable plant Non exciseable plant to another

ie: UPY to UGA ie: UPY to UHB ie: UHB to UPY ie: UCX to UHB

Port Accounting : RM Imports

Bonded plant to De-bonded plant De-bonded plant to exciseable plant De-bonded plant to non exciseable plant

Port Accounting : FG Imports

Bonded plant to De-bonded plant De-bonded plant to depot

Inter company (2Ps) Purchases : FG FG dispatches from Factory to Depots

Current Understanding : Inter Factory Movements - RM

Exciseable plant to another:

Financial impact of excise duty is posted at the time of Excise Invoice generation Value is based on assessable value and masters linked to the item code in J1ID Calculated value is updated in STO with following ref:
JMOD JECS JA1X : Basic Excise Duty : Education Cess : Higher Education Cess

Financial entry for this transaction is:

13406114 CENVAT Clearing a/c 1441031 - Excise Payable a/c Dr Cr

Value as calculated above will not be inventorised in receiving plant Is there a unique document reference for this movement?

Modeling for this scenario is in line with business requirement

Current Understanding : Inter Factory Movements - RM

Exciseable plant to Non exciseable plant:

Financial impact of excise duty is posted at the time of Excise Invoice generation Value is based on assessable value and masters linked to the item code in J1ID Calculated value is stamped back in STN as condition type value:
ZE04 ZE05 ZE06 : Basic Excise Duty : Education Cess : Higher Education Cess

Financial entry for this transaction is:

13406114 CENVAT Clearing a/c 1441031 - Excise Payable a/c Dr Cr

Value as calculated above Should be inventorised in receiving plant Is there a unique document reference for this movement?

Condition value is NOT getting inventorised in receiving Plant

Current Understanding : Inter Factory Movements - RM

Non Exciseable plant to Exciseable plant

&

Non Exciseable plant to another:

There will be no excise invoice generation at the time of dispatch, hence no financial entry for excise duty value Cost of material will be inclusive of excise duty Is there a unique document reference for this movement?

Modeling for these scenarios are in line with business requirement

Current Understanding : Port Accounting RM Imports

Bonded plant to De Bonded Plant:

There will be a GR against a PO in bonded plant. Inventory will be valued @ CIF price Before doing a STN from Bonded to De-Bonded plant, Customs and CVD will be paid based on C&FA request Payment of CD and CVD will be through LIV against condition type in STO. FI entry will be
: Dr : Dr : Cr Customs vendor a/c Bank a/c : Dr : Cr

13406119 Customs Clearing a/c 13406118 CVD Clearing a/c - Customs vendor a/c

At the time of PGI, there will be 2 condition value for CVD : one with +ve and another with ve sign. Net impact as Zero value. FI entry is as follows: : Dr : Cr : Dr / Cr : Cr : Dr : Cr

1210334 Stk RM chem (Recvg Plant) 1210334 Stk RM Chem (Disp Plant) - Price Difference a/c 13406119 Customs Clearing a/c 13406119 CVD clearing a/c 13406119 CVD clearing a/c

Inventory in De Bonded plant will be valued @ CIF + Customs duty Completion of LIV is NOT mandated for GR in De-Bonded Plant

Current Understanding : Port Accounting RM Imports

De - Bonded plant to Exciseable Plant:

There is NO excise invoice generation in de-bonded plant, hence no financial entry There is NO condition type value stamp back in STO. Hence Excise duty will not be inventorised in receiving plant. On CENVAT availment, there will be a financial entry crediting CBT 13406118 CVD Clearing a/c. This credit will be setting off the debit in de-bonded plant. Modeling for this scenario is in line with business requirement

De Bonded Plant to Non exciseable plant:

There is NO excise invoice generation in de-bonded plant, hence no financial entry There is NO condition type value stamp back in STO. Condition value is NOT getting inventorised in receiving Plant Hence, debit in CVD clearing a/c of de-bonded plant is to be transferred to receiving plant via JV. Inventory valuation in receiving plant is in-correct

Current Understanding : Port Accounting FG Imports

Bonded plant to De Bonded Plant:

There will be a GR against a PO in bonded plant. Inventory will be valued @ CIF price Before doing a STN from Bonded to De-Bonded plant, Customs and CVD will be paid based on C&FA request Payment of CD and CVD will be through LIV against condition type in STO. FI entry will be
: Dr : Dr : Cr Customs vendor a/c Bank a/c : Dr : Cr

13406119 Customs Clearing a/c 13406118 CVD Clearing a/c - Customs vendor a/c

At the time of PGI, there should be 2 condition value for CVD : one with +ve and another with ve sign. Net impact as Zero value. FI entry is as follows: : Dr : Cr : Dr / Cr : Cr : Dr : Cr : Cr

1210334 Stk RM chem (Recvg Plant) 1210334 Stk RM Chem (Disp Plant) - Price Difference a/c 13406119 Customs Clearing a/c 13406119 CVD clearing a/c 13406119 CVD clearing a/c 1441033 - Acc.Liab-Rent & Handling

Inventory in De Bonded plant should be valued @ CIF + Customs duty + Rent & Handling

Current Understanding : Port Accounting FG Imports

Bonded plant to De Bonded Plant: Contd

Completion of LIV is not mandated for GR in de-bonded plant Negative condition value is not added in STO Inventory is valued @ CIF + CD + Rent & Handling + CVD in de-

bonded plant.

CVD is not captured under right cost component New set of condition types used :
JCDB JCV1 JECV J1CV ZEC1 ZEC2 JADC ZCL1 IN Basic customs IN CVD Edu.Cess CVD SHE.Cess CVD Customs Edu.Cess SH Customs Edu.Cess Addl.Duty - Imports Clearing Charges/Qty

Current Understanding : Port Accounting FG Imports

De - Bonded plant to Depot Plant:

There is NO excise invoice generation in de-bonded plant, hence no financial entry Excise duty condition type value is stamped back in STO wrt CIN masters

Hence Excise duty is getting inventorised in depot plant which is right

As there was a problem in Bonded to De- bonded plant movement, Excise duty is getting counted twice For FG dispatches, unit is to be adviced to transfer the debit balance in CVD clearing a/c or CVD equivalent in advance a/c to ED paid a/c.

In Summary.

Areas to re-visit:

Stamp back program logic for Exciseable plant to Non exciseable plant movement Mandating LIV process completion to do a GR in de-bonded plant

Stamp back program logic for De-bonded plant to Non exciseable plant movement
FG Import model