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8/22/2019 gl for cin

1/11

This is for Country Version India, Financial Accounting Flow of Entries:

I. Procurement of Stock.

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 proceurement of Capital Goods

During GR

Material Stock Dr.

GR/IR clearing Cr.


Cenvat Account Dr. (50%)

Cenvat On-hold Dr. (50%)

Cenvat Clearing Cr.



2/11

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.


Cenvat Account Dr.

Custom Clearing Cr.


GR/IR Clearing Dr.

Vendor Payable Cr.

For Excise Duty Credit of Raw Material without PO

Cenvat Account Dr.

Cenvat Clearing Cr.


3/11

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 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.


4/11

What should be my accounting entry in SD ?

For Factory Sale

During Billing Document

Customer Account Dr.

Sales Account Cr.

Cenvat Suspense Account Cr.



Cenvat payable Cr.

For TR6C Challan

PLA Account Dr.



Cenvat payable Dr.

Cenvat Account Cr.

PLA Account Cr.

For Stock Transfer through SD

No Accounting entries for Proforma Billing Document



Cenvat payable Cr.


5/11

For TR6C Challan

PLA Account Dr.



Cenvat payable Dr.

Cenvat Account Cr.

PLA Account Cr.

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

II. Central Excise

RG 1 - Production & Issues or Inputs form Production and Sales

RG 23A Part I - Link Stock Register, only Product details and Quantity details.

RG 23A Part II - Cenvat Credit on Incoming Materials & Duty Paybale on OutgoingMaterials or on Sales (Monthly Register)

Excise PLA Register - TR 6 Challans

Form No. 5 Register - For Return Goods (Form D3 to be submitted to Excise Dept.,)

In SAP the Movement you save the MIGO Transaction, it automaticallygenerate FI Document. It will create the following entry.

i). Inventory Raw Material A/c Dr

To GR/IR Clearing A/c Cr

In MIGO Transaction itself, you can post Excise by choosing capture and post

Excise Invoice. The FI Document will be as follows.

ii). RG 23 A Basic Excise Duty A/c Dr

To Canvat Clearing A/c Cr

After doing MIGO, you execute MIRO. In this transaction also SAP will

generate FI document automatically. The Entry will be as follows:


6/11

iii). GR/IR Clearing A/c Dr

Cenvat Clearing A/c Dr

VAT Setoff A/c Dr

To Vendor A/c Cr

III. Flow of Entries for a Normal Manufacturing Activity:

I. On Receipt of Raw Materials: (MIGO-movement type:101)

Dr. Inventory of Raw Materials 100

Dr. Inventory of Operating Supplies 20

Dr. Inventory of Packing Materials 10

Cr. GR/IR Clearing A/c 130

II. On Invoice Verification: (MIRO)

Dr. GR/IR Clearing A/c 130

Cr. Vendor A/c 130

III. On Goods Issued for Production: (MIGO-movement type:261)

Dr. Consumption of Raw Materials 100

Dr. Consumption of Operating Supplies 20

Cr. Inventory of Raw Materials 100

Cr. Inventory of Operating Supplies 20

IV. On Semi-Finished Goods Received form Process: (MIGO-movement

type:101)

Dr. Inventory of Semi-Finished Goods 120

Cr. Cost of Goods Manufactured (Semi-Finished Goods)120

V. On Issued of Semi-Finished Goods for further Processing: (MIGO-movement

type:261)


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Dr. Consumption of Semi-Finished Goods 120

Dr. Consumption of Packing Materials 10

Cr. Inventory of Semi-Finished Goods 120

Cr. Inventory of Packing Materials 10

VI. On Finished Goods Received from Process: (MIGO-movement type:101)

Dr. Inventoyr of Finished Goods 130

Cr. Cost of Goods Manufactured (Finished Goods) 130

VII. On Finished Goods Issued for Sales: (VL01N-movement type:601)

Dr. Cost of Goods Sold (Finished Goods) 130

Cr. Inventory of Finished Goods 130

VIII. On Raising Bill for the Customer: (VF01)

Dr. Customer A/c 145

Cr. Sales A/c 145


8/11

Hi

Following are the entries as given below

During good Receipt: -

Stock A/c Dr

GR/IR A/c Cr

Freight clearing a/c Cr

Other expenses Cr

During invoice verification :-

GR/IR A/C Dr

Vendor Cr

When goods are issued to the production order the following transaction taken place:_


9/11

Consumption of raw materials Dr

Stock A.c Cr

When goods are received from the production order the following entries

Inventory A/c Dr

Cost of goods produced Cr

price difference Dr/CR

when goods are dispatched to customer through delivery

Cost of goods sold Dr

inventory Cr

When goods are issued to a cost center or agsainst expenses

Repairs and maintaince Dr

inventory CR

when goods are stock transfered one plant to other plant

Stock A/c Dr ( receiver)


10/11

Stock a/c (Sending location)

Price difference

When goods are revaulted

Stock a/c dr/cr

Inventory reveolution a/c dr/cr

When work in progress

Work in progess Dr

change in wip cr

When sales of goods despacthed

Customer A/c Dr

revenue a/c cr

excise duty payable Cr

sales tax payable Cr

Excise duty paid Dr

Excise duty payable Cr


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If any query feel free ask me

Regards

Roobal

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