What should be my accounting entry in procurement?

For Domestic Procurement of Raw Material During GR Material Stock GR/IR clearing During Excise Invoice Credit Cenvat Account Cenvat Clearing During Invoice Verification Cenvat Clearing GR/IR Clearing Vendor Payable For Domestic procurement of Capital Goods During GR Material Stock GR/IR clearing During Excise Invoice Credit Cenvat Account Cenvat On-hold Cenvat Clearing During Invoice Verification Cenvat Clearing GR/IR Clearing Vendor Payable Subsequent of Capital Goods Cenvat Account Cenvat On-hold For Import Procurement of Raw Material During Customs Duty Clearing invoice Custom Clearing Custom Payable During GR Material Stock GR/IR clearing During Excise Invoice Credit Cenvat Account Custom Clearing Dr. Cr. Dr. Cr. Dr. Cr. Dr. (50%) Cr. (50%) Dr. Dr. Cr Dr. Dr. (50%) (50%) Cr. Dr. Cr. Dr. Dr. Cr. Dr. Cr. Dr. Cr.

During Invoice Verification GR/IR Clearing Vendor Payable Dr. Cr.

For Excise Duty Credit of Raw Material without PO Cenvat Account Cenvat Clearing Dr. Cr.

For Excise Duty Reversal through Excise JV Cenvat Clearing Cenvat Account Dr. 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 Cenvat payable For TR6C Challan PLA Account PLA on hold Account During Fortnightly Utilization Cenvat payable Cenvat Account PLA Account Dr. Cr. Cr. Dr. Cr. Dr. 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 Cenvat Account For Subcontracting Challan Recredit Cenvat Account Dr. Dr. Cr.

Cenvat Reversal What should be my accounting entry in SD ? For Factory Sale During Billing Document Customer Account Sales Account Cenvat Suspense Account During Excise Invoice Creation Cenvat Suspense Account Cenvat payable For TR6C Challan PLA Account PLA on hold Account During Fortnightly Utilization Cenvat payable Cenvat Account PLA Account For Stock Transfer through SD Dr. Dr.

Cr.

Dr. Cr. Cr.

Dr. Cr.

Cr.

Cr. Cr.

No Accounting entries for Performa Billing Document During Excise Invoice Creation Cenvat Suspense Account Cenvat payable For TR6C Challan PLA Account PLA on hold Account During Fortnightly Utilization Cenvat payable Cenvat Account PLA Account Dr. Cr. Cr. Dr. Cr. Dr. Cr.

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

Initial stock entry: Movement type - 561(Receipt per initial entry of stock balances into unrestricted-use) TCODE - MB1C FI Document Type - WA 89 Raw material BSX S 91 Initial Stock entry GBB BSA H Physical inventory differences: Movement type 702 (Goods Issue Physical Inventory difference) this is triggered because of the movement type 102, which is given while calculating the difference INV: for expenditure/income from inventory differences TCODE - MI07 (MI01 & MI04) FI Document Type - WI 81 Inventory differences G/L GBB INV S 99 Raw material BSX H Goods Issue to Production Order: Movement type - 261 (Consumption for order from warehouse) VBR: for internal goods issues (for example, for cost center) TCODE - MB1A FI Document Type - WA: Goods Issue 81 Raw material Consumption GBB VBR S 99 Raw material BSX H In case Movement type given is 201(Consumption for cost center from warehouse), at the time of MB1A system asks for the COST CENTER & GENERAL LEDGER. Here, the account determination happens directly from MB1A and not from the OBYC. Accounting entry will be same as above except the 'Raw material Consumption'; it triggers whatever the GL given. Goods Issue / Delivery: SD Movement type - 601 (Customer delivery) VAX: for goods issues for sales orders without account assignment object (the account is not a cost element) TCODE - VL02 FI Document Type - WL: Goods Issue/Delivery 81 Mater. consumed/trading GBB VAX S goods without cost elementCOGS 99 Finished Goods BSX H Goods Receipt: FG PP Movement type - 101 (Goods Receipt) GBB-AUF: for goods receipts for orders (without account assignment) and for order settlement if AUA is not maintained TCODE - MB31 Goods Receipt for Production Order FI Document Type - WE: Goods Receipt 89 Finished Goods BSX S 91 Inventory change factory GBB AUF H output COGP Goods Receipt: RM MM Movement type - 101 (Goods Receipt) TCODE - MIGO Goods Receipt for Purchase Order FI Document Type - WE: Goods Receipt 89 Raw Material BSX S GR / IR Clearing account 96 WRX H Invoice Receipt: RM MM Movement type - 101 (Goods Receipt) TCODE - MIGO Goods Receipt for Purchase Order FI Document Type - WE: Goods Receipt

GR / IR Clearing account 86 WRX S 31 Vendor account KBS H KBS is without any account determination and posting keys are 81 & 91. It triggers when there is no material is assigned in the PO at that time. WRX In case of any posting required without material, account determination should be without valuation class. If price changed at the time of IR, then based on the difference in the material price system posts amounts to particular material account and not to the price difference account (this is related to the materials with price control V). Material Valuation: MM Movement type TCODE - MR22 Dr/Cr Material material valuation (below given calculation) & MR21: Price Change (Difference amount posts to the material account and calculation is ((New price Old price) * Quantity) FI Document Type - PR: Price change Below entry in case of price increase Raw material 89 BSX S 93 Material Valuation UMB H Calculation - {Current Stock Value + (Amount given in MR22 / Quantity given in MR22 * Cr. Quantity)} Billing Document: SD TCODE - VF01 Billing - VF11 Cancel Billing FI Document Type - RV: Billing document transfer - RW: Reversal of billing Customer account 01 BSX S 50 Sales Revenue account UMB H

Invoice Verification for Foreign VendorOn receipt of vendor bill the following entry will be passed:GR/IR A

ccount DRVend or Account CRIn voice Verification for Custom vendorOn receipt of Vendor bill the

follo wing entry will be passed:1) RG 2 3A/RG 23C Part 2 A/c (CVD) A/c DRC envat Clearing A /c CR2) G/R I/R

A/c DRCenvat C learing A/c DRV endor A/c CR3) Cost of Material A/c DRVendor A /c (Customs) CR Invoice Verification for

Freight / Clearing AgentCost of M aterial A/c DRVe ndor A/c (Clearing Agent) CRInvoic e Verification for

Octroi ExpensesCost o f Material DRVe ndor A/c (Octroi) CRTDS (Work Contract Tax) for Service Orders shall be

calculated and deductedaccordi ngly.The following entry will be passed on bill passing:Expens es Account DRV

endor Account CRTDS Account CRThe material shall be returned to the vendor using theReturn to vendor movement type

in SAPCreating a Return POThese transactions will be processed in the MM module.The accounting

entries will be :Returns after GRNGR/IR A/c DrStock A/c CrT he accounting in respect of debit / credit memos for FI vendors,

the process willbe similar to that of invoice processing. The accounting entries will be:On issue of debit note

Vendor Account DRExpenses Ac count CRIn respect of import vendor - capital goods exchange differences are to beaccounted

manually through a Journal Voucher for capitalization.Ex change rate differences will be accounted at

HO. An example of theaccounting entry in this case shall be:Invoice entry @ 40 INR: 1 USDAsset / Exp ense A/c DR 10

0Vendor A/c CR 100Payment Entry @ 41 INR: 1 USDVendor A/c DR 100Bank A/c CR 110Exchan ge rate loss Cap

ital A/c DR 10As set A/c DR 10Ex change rate loss Capital A/c CR 10A new G/L account shall be created for the special G/L

transactions.The accounting entry for making the down payment shall be:Advance to s upplier account DebitBa

nk A/c CreditWh en the invoice is booked the following entry is passedGR/IR ac count DebitVend or account Credi tClearing of

Invoice against Down PaymentVendor A/c DebitVendo r down payment account CreditW herever, TDS is applicable, the

TDS will be deducted at the time of downpayment to the vendor.Down Payment for Capital (tangible)

AssetsDown payment to vendors for capital acquisitions is to be reported separately inthe Balance Sheet

under the head Capital Work in Progress. He nce downpayment for capital goods would be

tracked through a separate special generalledger indicator.The procedure to be followed is:Definition of

alternative reconciliation accounts for Accounts Payable for postingdown payments made for Capital

assetsClearing the down payment in Accounts Payable with the closing invoice. A new G/L account shall be

created for the special G/L transactions.The accounting entry for making the down payment shall be:Vendor Advance for

Capital Goods Account DebitBank A/c C reditWhen the invoice is booked the following entry is passedAsset A/

c/ Asset WIP Debit Vendor A/c Cred itClearing of Invoice against Down PaymentVendor A/c DebitVendo

r Advance for Capital Goods Account CreditThe Following are the TDS Rates (to be confirmed with the recent

changes)Particu lars Tax Rate Surcharge Rate TotalContractors 194 C 2% 5% 2.10%Advertisin g 194 C 1% 5% 1.05%Prof.

Fees 194 J 5% 5% 5.25%Rent Others 194 I 15% 5% 15.75%Rent Company 194 I 20% 5%

21%Commissio n 194H 5% 5% 5.25%Interest Others 194 A 10% 5% 10.50%Interest Company

194 A 20% 5% 21%Special Concessional TaxWorks Contract TaxSECURITY DEPOSITS /EARNEST

MONEY DEPOSIT RECEIVED FROMVENDOR SBank A/c DRS ecurity Deposit Vendor CREMD to give the age

so as to enable the same to be transferred to unclaimedEMD account.PAYME NT OF TOUR ADVANCE DOMESTIC

TOURSEmploye e Advances will be paid by the Accounts Department unit wise based onthe requisition or

recommendatio n of the respective departmental head.Employee Travel Advance A/c DR

Cash / Bank Acc ount CR