EXCISE DUTY IN CASE OF SALES RETURNS

[Former Member]

Hi,

When we create a RE document with reference to a billing document which is excise based, then all excise values also gets copied to the RE document and when we create the credit memo for this RE then excise values also gets posted to cenvat suspence account.

Now for returns how do we reverse excise or credit taken ?

Pls explain the process ?

Regards

Krishna

[Lakshmipathi · Accepted solution]

Dear Krishna

Go to J1IH, select [Other Adjustment] to adjust all Debit entries. If you want adjust any credit entries, select [Additional Excise] and proceed.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Hi,

In J1IH ... U had written Credit Entries and Debit Entries... i would request to know that debit entires means debit entries done or to be done ...

Like when we do sales:

Billing:

DR - Customer

CR - Cenvat Suspence Accc

Excise Invoice

Dr - Cenvat SSE

Dr - Payables

now when we do goods returns:

we need to get credit back to out input accounts .... so we would use which transaction in this case ?

In Returns

Cr - Customer

Dr - Cenvat Suspence Accnt

Now how give Cr to Cenvat SSE and Dr. input accounts ?

regards

krishna

[Lakshmipathi · Accepted solution]

Dear Krishna

To give customer credit, choose Additional excise so that you will have the option of [Modvat Account Selection] at the bottom screen. Choose whichever account you want to be adjusted and proceed.

Similarly, for debiting cenvat entries, choose Other Adjustment and here again, you have the option as to which book account the amounts should be debited. Choose the appropriate one from Modvat Account Selection tab and proceed.

If you are not sure and clear on the above explanation, please sit with FI consultants and proceed.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Dear G. Lakshmipathi,

The Solution recommended by you is right.

But if the Customer Return happens before the Utilisation for that Invoice , then the Excise Payable Account will remain hanging.

What will happen to that.

Regards

Sriram.S.

[Former Member]

Hi Krishana

For return we have to adjust excise by passing JV through txn J1IH

Manu