Accounting Entries during Invoice Creation!

[Former Member]

Dear Gurus,

I am in between a CIN Implementation project. When i create Excise Invoice i get the Accounting Entries as in the Screen Shot.

As per my analysis these Accounting Entries are appearing due to the assignment made in Specify G/L Accounts per Excise Transactions section.

But when i remove those assignments i end up with errors and Invoice does not gets created.

Other than these Accounting Entries the other required accounting entries are appearing correctly as given below:

Customer A/c  Dr.

Sales A/c  Cr.

Excise Duty (payable)    Cr.

Education Cess (payable)    Cr.

Hgr Education Cess (payable)  Cr.

Please suggest some solution for this.

Regards,

Ashutosh

[Former Member]

Hi Ashutosh,

Pls READ through the OSS note 1708290 and maintain the accounts for the ETT's as listed.

Regards,

Rajasree R

[Former Member]

Hi Rajashree,

I maintained the accounts for ETT as mentioned in OSS note 1708290, but it didn't helped.

Please suggest the solution for the problem.

Regards,

Ashutosh

[Former Member]

Hi,

The only solution is to maintain the entries in tables J_1ITRNACC and J_1IEXCACC.

This is the ONLY setting from where the excise accounts and GL accounts will be picked.

Regards,

Rajasree R

[Former Member]

Dear Gurus,

Please suggest, i am not able to resolve it.

Will be really grateful.

Regards,

Ashutosh

[former_member182489]

here you go -

check OB40 - GL assignment . to get the key , check in Tax pricing procedure , check the Act key used against each of the cdn type .

In simple terms : registers are updated with ETT - GL assignment and Inv with OB40 thing

[Former Member]

Dear Manu,

I have checked the account assignment in T.Code OB40 and it is correctly done.

I would like to put the screen shot of both the accounting documents, may be this will give the Gurus more clear idea about the problem.

This is the Accounting Document which i had already pasted and the below one is the other accounting document appearing with it which i guess is correct.

 

I don't need the first Accounting Document pasted here. 

Please suggest the solution and let me know if any other inputs are required for analysis of the issue.

Regards,

Ashutosh

[former_member182489]

Both Accounting entries are correct.

One shows your Cenvat entry and other is the final Billing to customer .( This will be normally your COGS + tax)

please refer any std  Billing/ cenvat posting  in other client. I feel its correct  and std process.

[Former Member]

Dear Manu,

In the above screen shots the accounting entries appearing on the first screen shot for G/L accounts 11258711, 11258721 and 11258731 are input accounts and 21258741 is output account for CENVAT Clearing.

Are these entries correct, in my opinion the G/L accounts for BED, ECESS and HECESS should be the same in both the documents and CENVAT should be an input G/L Account.

I made the changes in configuration as mentioned by me and as the result two entries were getting created for the G/L accounts for the Accounting Documents when i checked it for G/L accounts using T.Code FBL3N .

For example, In our case two entries will be created for each G/L account for document 6030000052 and 50000213.

So please suggest me what can i do so that my G/L entries for credit and debit get updated correctly and entries not get duplicated.

Regards,

Ashutosh

[former_member182489]

per me you did as follows  , SO, Delivery and PGI , J1iiN,  Billing .

The two Accounting  document you are referring, One you are seeing in Billing (one with customer) Another you are seeing it from J1IIN

Normally the Billing and Accounting entry are as follows

For Customer Billing

Customer DR

Sales CR

BED CR- GL Account 1

ECS CR- GL Account 2

ShecessCR- GL Account 3

Tax Posting- J1IIN

BED DR- GL Account 1

ECS DR - GL Account 2

Shecess DR- GL Account 3

Cenvat Payable Account CR

Logically , Cenvat is determined when we post out excise Value and the same value need to be Billed to the Customer rt . Hope you understood the logic > let me know if you need any more clarification.

Then only it will reconcile

You can even talk to the User on the Business logic , He wont help you with any SAP transaction . But ask them the process . How cenvat GL is reconciled with Customer Billing etc

quick ref - BED, ECS is maintained in OB40 and Cenvat is maintained in account assignment- ETT 

fyi - We name it CENVAT Suspense account (BED, ECS ,SHECEss in the above example)and Cenvat Payable (out put)account. CENVAT I/p is when you procure materials , This Register will come in to picture

thanks

Manu

Message was edited by: manu m

[Former Member]

Hi Manu,

Thanks for your response!

I have specified Excise Transaction Types as per the SAP Note – 1708290 in this note for Transaction Type DLFC; BED, ECS and Shecess are Credited and CENVAT Suspense, and CENVAT Clearing are Debited.

So if i make the configuration as per your suggestion then i have to reverse the configuration as mentioned in the SAP Note 1708290.

Please Help!

Regards,

Ashutosh

[former_member182489]

Ashutosh,

The accounting entry which I have said are from SAP . ref the link below(logically also its correct from accounting stand point) .

http://wiki.sdn.sap.com/wiki/display/ERPLO/CIN+Accounting+Entries

I think I have confused you with Suspense account ( if so the name I have given is for BED, ECS, Schecess - a generic term) NOT the CENVAT Suspense account in ETT  assignment . The Screen ETT CR, DR are correct . don't change it.

Let me help you in detail to best I know ,

Billing the customer

Customer Dr  GL 1

Sales Cr  GL 2

BED Cr     GL 3-> T code VKOA

ECS Cr -      GL 3->T code VKOA

Schces Cr - GL3->T code VKOA

VAT CR     GL4->T code VKOA

Cenvat Posting

Cenvat Clearing DR -> GL 3 - Path = ETT (DLFC)- GL assignment

BED CR -GL 4 -> Path = ETT (DLFC)- GL assignment

ECS CR- GL5 - >Path = ETT (DLFC)- GL assignment

Schcess CR- GL6 - >Path = ETT (DLFC)- GL assignment

CR/DR for Debit/ Credit

GL - General ledger number

[Former Member]

Thank you Manu for your suggestion.

My problem is resolved.

[Former Member]

The system uses the excise transaction type to determine which G/L

    accounts have to be posted to.

CAGI     CAPITAL GOODS ISSUES

CAPE     CAPITAL GOODS

CEIV     CANCELLATION OF EXCISE INVOICE

DIEX     DIFFERENTIAL EXCISE THROUGH JV

DLFC     GOODS REMOVAL THROUGH SALES

EWPO     EXCISE INVOICE WITHOUT PO

GRPO     EXCISE INVOICE FOR GOODS RECEIPT/PO

MRDY     REVERSAL WITHOUT REFERENCE

MRRD     REVERSAL INCASE OF COMSUMPTION OTHER THAN PRODUCTI

MRWO     CENVAT REVERSALS FOR WRITE OFF

OTHR     EXCISE INVOICE FOR OTHER MOVEMENTS

TR6C     PLA ACCOUNT ADJUSTMENT THROUGH

Please find below the financial Accounting Entry Flow.

For Domestic Procurement of Raw Material

            During GR

                                    Material Stock             Dr.

                                    GR/IR clearing                       Cr.

            During Excise Invoice Credit            

                                    Cenvat Account          Dr.

                                    Cenvat Clearing                     Cr.

            During Invoice Verification

                                    Cenvat Clearing         Dr.

                                    GR/IR Clearing          Dr.

                                    Vendor Payable                     Cr.

      For Domestic proceurement 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         Dr.

                                    GR/IR Clearing          Dr.

                                    Vendor Payable                     Cr

Subsequent of Capital Goods

                                    Cenvat Account          Dr.      (50%)

                                    Cenvat On-hold                      Cr.      (50%)

     For Import Procurement of Raw Material
                      

            During Customs Duty Clearing invoice

                                    Custom Clearing        Dr.

                                    Custom Payable                     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          Dr.

                                    Vendor Payable                     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.

      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.

Note: Cenvat Suspense Account should be cleared apprpiately using FI JV's.  

• What should be my accounting entry in subcontracting reversal / Recredit ?

For Subcontracting Challan Reversal

                        Cenvat Reversal         Dr.

                        Cenvat Account                      Cr.

For Subcontracting Challan Recredit

                        Cenvat Account          Dr.

                        Cenvat Reversal                     Cr.   

• What should be my accounting entry in SD ?

For Factory Sale
 

                 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.

     For Stock Transfer through SD

No Accounting entries for Proforma Billing Document

      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.