Accounting Entries for MM, FI related

• What should be my accounting entry in procurement?

     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 procurement 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.

 

• What should be my accounting entry when the goods are issued through MM and excise invoice is created (J1IS & J1IV)?

     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 appropriately 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 Performa 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.

 

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