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Import duties JCV1-IN: CVD, JADC-IN: Add Custom Duty to GL account

Former Member
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Hi Folks

As per our current requirements, we DO NOT want to inventorize following duties to the cost of materials. As these 2 are cenvatable ad will be passed on to the customer, we want amounts for these 2 conditions debited to GL account we created.

We have done following setup

1) Conditio Type JCV1 and JADC are defined as  ACcruals on control data 2 in M/06.

2) On Import pricing procedure, these 2 conditions assigned to

Account key that we created 'CVD' and the Account key - accruals / provisions being FR3.


270JCV1IN: CVD22 




CVDFR3
280JADCIN: Add Custom Duty22 




CVDFR3

in OBYC we have assigned GL accounts where these duties should be debited to,

when I do GR for PO, these duties are inventoried instead of debit to account 24003 that is assigned to key "CVD"

How can we achieve this. What Am I missing??

Thanks

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Hi,

Without doing anything, whatever you are trying to achieve is standard system behaviour. Some one might have changed the settings in either J1ID or account key config is changed.

Former Member
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Hi Nilesh

We do not want to inventory import duties. A si understand for Import POs at depot, the standard system behaviour is not to inventory these duties but should be debited to CVD account. This is not happening.

former_member187965
Active Contributor
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Hi,

Try by removing accruals in control data 2 in M/06.

Former Member
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Hi Shailesh

We are importing goods from our affiliates in Depot and using JIMPOR pricing procedure. Based on our business requirements the duties CVD-IN: CVD (Condition type JCV1) and ADC-IN: Add Custom Duty (Condition type JADC) can be availed for credit.

Here is what we want to do.

At the time of MIRO for customs duties, We want following GL postings to happen

A/c codeDescriptionNature
Dr219440GR/IR LIABILITYCUSTOM DUTY (BASIC)Cost to add to inventory
Dr219425GR/IR CUSTOM CHGS - FIN GOODSCUSTOM DUTY (CVD)Accumulate in B/S account to pass on to custmer
Dr219427GR/IR CUSTOM SAD - FIN GOODSCUSTOM DUTY (SAD)Accumulate in B/S account to pass on to custmer
Cr1733BankTOTAL CUSTOM DUTY PAID THROUGH BANKAmount paid to Clearing agent bank to be paid to the Government

At the time of MIGO- Goods receipt

At the time of preparation of GR
A/c codeDescriptionNature
DR53000FINISHED GOODS INVENTORYBASIC COST OF MATERIALBasic Cost of goods imported
DR53000FINISHED GOODS INVENTORYFREIGHT, INSURANCE  & OTHER COST BY AFFILIATECost added to inventory
DR53000FINISHED GOODS INVENTORYCUSTOM DUTY (BASIC)Cost added to inventory
DR24003CVD ON INVENTORYCUSTOM DUTY (CVD)Accumulation of CVD to pass on to customer
DR24004SAD ON INVENTORYCUSTOM DUTY (SAD)Accumulation of SAD to pass on to customer
DR53000FINISHED GOODS INVENTORYFREIGHT AND CLEARING ON IMPORT Clearing Cost added to inventory
CR219440GR/IR LIABILITYBASIC COST OF MATERIALPayable to Affiliate vendor
CR219440GR/IR LIABILITYFREIGHT, INSURANCE  & OTHER COST BY AFFILIATEPayable to Affiliate vendor
CR219440GR/IR LIABILITYCUSTOM DUTY (BASIC)Sqares of the clearing account and cost added to inventory
CR219425GR/IR CUSTOM CHGS - FIN GOODSCUSTOM DUTY (CVD)Sqares of the clearing account and moved to accumulating account
CR219427GR/IR CUSTOM SAD - FIN GOODSCUSTOM DUTY (SAD)Sqares of the clearing account and moved to accumulating account
CR219420GR/IR FREIGHTFREIGHT AND CLEARING ON IMPORT Accrual for Import clearing and forwarding

The entries hilighted in BOLD Debits to 24003 and 24004 and credit to GR/IR 219425 & 219427 are not happening. 

Is this even possible in SAP?  Please let me know.

former_member187965
Active Contributor
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Hi,

In standard system, CVD and ADC duties are not inventoried. Check whether you have defined JCV1 and JADC condition types for TAXINN in excise defaults by the following configuration path,

SPRO - Logistics General - Tax on Goods Movements - India - Basic Settings - Determination of Excise Duty - Maintain Excise Defaults

Former Member
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Hi Shailesh

Yes it is configure the way you have indicated above.But still these duties are debited to Inventory account. We want them to be debited a specific G/L account created for them when Goods receipt is done.

Currently when MIRO is performed for planned delivery cost, Carrier account is credited for the amount and GR/IR accounts for JAC1 and ADC, and basic excise are debited at this time.

When GR is performed, we want Inventory account debited, GR/IR for JACV1 and JADC are credited and GL accounts for these 2 duties must be deibted.

I created an accruel key and updated it on pricing procedure and then updated GL accounts in OBYC config.

brinda_r
Active Contributor
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Hi,

Is it imports to a plant or a depot?

CVD values will not be inventorised when importing to a plant. Only custom duty will be.

Regards,

Brinda

Former Member
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Its import to Depot.

Former Member
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THat is what we want it to happen. Not to inventory CVD values. But somehow SAP is doing this. We are on 4.7 vesrion.

Please let me know, if there is solution to have CVD debited to setoff account and not inventoried.