Impacts of J1ID cenvat determination

[Former Member]

HI team,

Q.1 What are impacts if did not maintain cenvat determination for Excise Raw Material in J1ID??

Q.2 One Raw Material is used multiple F.G, I have to maintain All F.G combinations with respect one raw material ?

Q.3 If i maintain One F.G, for set of all Raw Material what are impacts??

[Former Member · Accepted solution]

Hi Rama,

The impacts if you did not maintain cenvat determination in J1ID are

1. You will not get the entries into respective registers.

2. For cenvat utilization it is mandatory that you have maintain that material in J1ID.

3. As per my knowledge it will not have any impact against one raw material to many FG or one FG & set of raw materials but you have to maintain in that table if you have to utilize cenvat. Without dterning there it is not possible to utilize Cenvat.

Regards,

S.Himavanth.

[Former Member]

Thanks All,

I got solution

[former_member182489]

Ram ,

It work in this way .

1.A.plant : manufacturing unit is producing a  product ( adding value by combining/assembling/ processing - eg- a cap 2 rps and body 5 rps  is assembled to make a pen 7 and accessible value is 10)

B. If Cap , body and pen are marked as Excisable under Indian/country Excisable act ( chapter ID)

when ever these materials comes in to such  plant and goes out to plant, Excise need to be tracked . I.e Cenvat Credit is availed at purchase and Dr at Sales.

You can make this happen by doing the CIN settinsg and your Question of J1id Setting is one key are which need to be updated so make the process go correct.

2.Now one Raw material can be used to amke multiple FG . Possible in sap and you need to make the most appropriate . Normally Auditors will confirm which one to be marked 

You need to maintain all and set one as

3. for your third question - I go with Ashoks recommendation.

"Just donot maintain the Cenvat Determination for One Excisable Material and run the Procurement Cycle till Excise invoice Part2 posting and let us know your observations / findings"

regards

manu

[Former Member]

Hi Rama,

Its like you declare maintaining which Raw material is used to produced one FG which will used during cenvat utilization and also during FG sales out.

So you need to update each raw material against each FG code in J1ID.

Rgds,

[former_member192897]

Please look into the below explanation for your Queries.

Companies are required to file with the Excise authorities, a list containing the excisable finished products manufactured and the excisable input materials required for such production, to avail Modvat / Cenvat Credit.

Similarly for Subcontracting you will have to maintain the Input and Out put material under Cenvat Determination.

It is possible that an input material may be used in the production of more than one finished product. However, if such a material is mainly used for the manufacture of a particular finished product then the input material is identified to be the default material. The default indicator has to be checked in such cases.

Just donot maintain the Cenvat Determination for One Excisable Material and run the Procurement Cycle till Excise invoice Part2 posting and let us know your observations / findings.

[Former Member]

Hi Rama

Cenvat  determination maintanace is mandatory in case of the material whcih undergo Cenvat credit availment process. without this following impact will happen

1. Taxes will come as Zero in PO, eventhough you maintain Proper Condition type.

2. Improper excise invoice capturing will happen(mostly Zero value)

Now a days no need to declare the relationship between FG and RM, just you maintain the input material in cenvat determination, it will do.

Regards

Maruthi S