immediate credit on capital goods?

[Former Member]

hi

can someone explain me in detail

IMMEDIATE CREDIT ON CAPITAL GOODS

Instructs the system, when we verify a goods receipt for capital goods, to immediately post half of the input excise duty to the appropriate CENVAT accounts.

The rest is posted to the CENVAT on hold account, for use in the following year.

regards

sanjay kumar nanda

[Former Member]

thanks for reply

[Former Member]

Hi,

In addition to Veenit's reply...in case you want to remove any capital godos as such, you can take the credit of remaining 50% On hold credit by J2I8 ( Its not J1I9 as mentioned by Veenit) in the same year. it is allowed by law.

Regards,

Vikas

[Former Member]

Hello

Yes as u said very right it posts the 50% of the Duties to CENVAT accnt and balance 50% to CENVAT on hold account and that balance 50% we can post it to the CENVAT account from CENVAT on hld account from transaction J1I9 (Balance transfer of Capital goods).

This is because as per Indian law In case of CAPITAL GOODS we can avail the MODVAT (Cenvat) benefit 50% in the current fiscal year and the balance in the next fiscal year.

In standard SAP system this isonly possible if the material is assigned to Assets (Capital goods) in J1ID (Excise master).

I hope this solves your query...if stil any doubts pls revert back..

Cheers

Vineet Baweja