Excise entries at MIRO
The requirement from my user was that he said he was not sure what would be the Excise duty when he is creating a purchase order. So what we suggested him was that to create a purchase order with a dummy tax code S0 with only the basic price in the PO document
And the next thing the user said that most of the times he wont receive the gate pass (excise invoice) from his supplier at the time of Goods Receipt. So for that what we suggested him was that he can decide whether to make Excise entries at the time of Goods receipt. If he doesn't want excise registers to be hit at the time of GR then he can select No Excise entries at the time of MIGO and then he can do it through J1IEX, where we suggested he can capture and post the excise invoice with Excise Transaction Type (EWPO) where he manually enters the duties BED. EduCESS and SeCESS.
Until now this was fine.
He has come with new issue now the user wants to know when he is doing MIRO (invoice verification), how will he know if the excise entries have already been done and whether those entries can be reflected while he is doing MIRO.
Please guide me through this. And also let me know if we have gone wrong anywhere.
Thanks & Regards
Krishnan Lakshmanan replied
If we are creating the Excise with PO during the GR then it will prompt at the time of MIRO, whether Cenvat has been availed or not. This is one option. Since in your case as you donot have the excise invoice, while creating of the GR itself create the internal Excise invoice also with the average percentage for that type of material. I hope that you maintain material code and excise details for the vendor which will help you in calculation of the excise duty on the material. The better option is to create excise invoice while doing the GR itself, so that duplication of availment of Cenvat credit as well as missing of availment of Cenvat credit on the eligible amount can be avoided. This will save a lot of money for the Company also as Excise duty payment which is outflow of cash for the company can be better monitored and adjusted.