Accounting Entry in Procurement-Relevant to sap fi mm

Accounting entry in procurement Related to SAP fi mm

~ 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.

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.

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.