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accounting entries

Former Member
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Hi all,

here india implementation is under progress, can anybody give the accounting entries posted for factory sales, depot sales, customer return?

thanks in advance

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Answers (2)

Answers (2)

Former Member
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Dear Manish,

do you have any screen shots documentation regarding for Factory Sales, Depot, return etc., ?

we are implementing CIN process here. so i only one consultant handling SD, MM, FI processes here.

i identified 5 proceses in SD, 9 In MM, with TDS, JV's also.

If you have any, Kindly share with me.. my mail id is raghuksl@rediffmail.com

thanks in advance for prompt reply earlier.

Raghav

Former Member
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Hello Raghav,

Factory Sales- During factory sales R/3 allows for the creation of excise invoices, which you have to send with each delivery that is subject to excise duty. There are two scenarios, depending on whether you want to send the commercial invoice along with the delivery or at a later date.

Prerequisites: In order for the system to be able to copy the information from document to document, you must have set up the copying control procedures in Customizing for Sales and Distribution (SD). This differs according to when you want to send the commercial invoice:

Along with the delivery

In this case, the document flow would be OR (standard sales order type) – LF (standard delivery type) – F2 (invoice).

At a later date

The document flow would be OR – JF (delivery type, a copy of LF) – JEX (pro forma billing document type, a copy of document type F8) – F2.

In addition, you must also have maintained the settings in Customizing for Logistics – General, by choosing Taxes on Goods Movements-> India->Business Transactions->Outgoing Excise Invoices->Assign Billing Types to Delivery Types.

Two sample pricing procedures are provided for this sales procedure, J1INFAC (condition-based excise determination) and JFACT (formula-based excise determination).

Process Flow

The sales clerk creates a sales order, following the standard procedure.

There are special procedures for customers in possession of exemption forms.

The shipping clerk creates a delivery, again, following the standard procedure.

On the initial screen, you set the appropriate delivery type (see above).

The warehouseman enters the goods issue.

The system only allows users to create a pro forma excise invoice if the delivery is complete, so as to prevent them from creating multiple pro forma excise invoices.

What you do at this stage depends on whether you want to send the commercial invoice along with the delivery or whether you want to invoice the customer later.

If the invoice is to be shipped with delivery, the shipping clerk:

Creates an invoice, following the standard procedure.

Creates an excise invoice from the invoice

If the invoice is to be sent on at a later date, the shipping clerk:

Creates the pro forma excise invoice

The pro forma excise invoice is only required for technical purposes and is not sent to the customer. The system does not make any accounting postings at this stage.

Creates an excise invoice from the pro forma excise invoice

In both these cases, the system creates an accounting document to post the excise duty to a clearing account.Instead of creating excise invoices manually, you can also have the system create them automatically. Alternatively, you can create them in batches.

You ship the goods.

When the time comes to invoice the customer, you create the invoice, following the standard procedure.

Irrespective of the number of excise invoices that you have issued, you can combine the delivery items in a single invoice (if the standard requirements are met).

SD Excise Accounting Entry: 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 apprpiately using FI JV’s.

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Hope this helps you out. Please assign points and I will revert back to you on other processes.

Rfgds

Manish