Cenvat Accounting

Chain Sys ACE

Training Guide Cenvat Accounting

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Table of Contents Cenvat Accounting...............................................................Error! Bookmark not defined.

Claim Cenvat at Receipts .......................................................................................................... 1

Claim Cenvat after Receipts ................................................................................................... 11

Cenvat on Capital Goods......................................................................................................... 23

Chain Sys ACE

Training Guide Cenvat Accounting

Page 1

Claim Cenvat at Receipts Procedure Oracle enables claiming of cenvat amount on receipt of materials at Gate entry. Pre-requisite is to claim cenvat is the purchase order should have excise type of tax attached and the organization should be excisable. If cenvat invoice is not received or cenvat claim is to be done by person other than the person who prepares GRN, oracle provides separate form to claim cenvat. On claiming cenvat the accounting entries to account cenvat will be created by the system and the cenvat registers and balances will be updated. Navigate to India Localization Receipt Screen In Purchase or Inventory Responsibility. Query for a Receipt ( GRN ) No

Training Guide Cenvat Accounting

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Step Action

1. If Cenvat Is claimed by the Gate Entry Person while accounting the receipt, Claim cenvat on Receipt Flag need to be checked, Excise Invoice Number and Date should be entered and Populate button should be invoked.

Step Action

2. Use the tax button to view the taxes added for the receipt. Point to the Tax button.

3. Click the Tax button.

or

Press [Alt+x].

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Training Guide Cenvat Accounting

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Step Action

4. Use the scroll Bar to the right to check whether Cenvat Credit is available for the selected taxes. Click the scrollbar.

Training Guide Cenvat Accounting

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Step Action

5. Ensure whether Recoverable Flag is checked. If unchecked, it indicates that Cenvat Claim is not available Click the Tools menu.

or

Press [Alt+T].

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Training Guide Cenvat Accounting

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Step Action

6. View Registers will provide details of the Relavant Registers Click the View Registers menu.

or

Press [R].

Training Guide Cenvat Accounting

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Step Action

7. View RG23 Part I Register. To view RG23 Part II, Click the RG23 Part 2 tab.

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Training Guide Cenvat Accounting

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Step Action

8. Close the form and go to Tools menu and select View Accounting. Click in the field.

Training Guide Cenvat Accounting

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Step Action

9. View the Accounting entry created for Taxes. You can Navigate by Pressing the Down Arrow or Up Arrow to view other entries from Account Type Field Press [Down].

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Training Guide Cenvat Accounting

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Step Action

10. View the Cenvat Accounting Entries created. The cenvat accounting entries can be viewed on claiming the cenvat. Click in the field.

Training Guide Cenvat Accounting

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Step Action

11. View the entries created at Delivery of Material to Inventory. Normally all Non recoverable charges which need to be costed with materials will be shown here. End of Procedure.

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Training Guide Cenvat Accounting

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Claim Cenvat after Receipts Procedure Navigate to Localize Receipt-Claim Modvat on Receipts Form.

Step Action

1. If cenvat invoice is not received or cenvat claim is to be done by person other than the person who prepares GRN, oracle provides separate form to claim cenvat. Navigate to Localize Receipt-Claim Modvat on Receipts Form. Press [Ctrl+L].

Training Guide Cenvat Accounting

Chain Sys ACE

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Step Action

2. Enter the Operating Unit and Organization. If looking for specific Receipts ( GRN ) , enter Receipt Number field and choose Find Button to proceed. If looking for all Receipts (GRN ) on which Cenvat is not claimed, Choose find window to Proceed. Click the Find button.

or

Press [Alt+d].

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Training Guide Cenvat Accounting

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Step Action

3. All unclaimed Receipts will be listed here. In this case we choose to claim Cenvat for Receipt Number 101000008. Navigate to the Right using scroll Bar for viewing other details and claiming cenvat Press [Backspace].

Training Guide Cenvat Accounting

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Step Action

4. Click the Claim CENVAT option.

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Training Guide Cenvat Accounting

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Step Action

5. Enter the Excise Invoice Number and Excise Invoice Date before selecting Claim Cenvat Check Box. Use the claim Button to initiate Claim Cenvat Action Click the Claim button.

or

Press [Alt+C].

Training Guide Cenvat Accounting

Chain Sys ACE

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Step Action

6. Note that re-confirmation is requested by System, whether we can continue with claiming Modvat. Once option is exercised, Cenvat claim will be done. Excise Register will be updated and necessary accounting entries will be created. Click the Yes button.

or

Press [Alt+Y].

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Training Guide Cenvat Accounting

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Step Action

7. Eligible unclaimed Modvat will be listed Here. This form can be used to find out the Modvat Pendency. If user choose to claim cenvat for multiple receipts (GRN) at one stroke, he can do so by checking the Check ALL option Point to the Check All option.

8. Click the Find Receipts India Localization (APH).

Training Guide Cenvat Accounting

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Step Action

9. To view the register entry and cenvat accounting entries navigate to Receipts ( Localized ) form. Enter the Receipt ( GRN ) number and use the find button to query the Receipts. Click the View Registers menu.

or

Press [R].

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Training Guide Cenvat Accounting

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Step Action

10. Use Tools View Register option to navigate to this window. View the RG23 Part I Register details in this form. By selecting RG23 Part 2 Tab, you can view the RG23 Part 2 details Click the RG23 Part 2 tab.

Training Guide Cenvat Accounting

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Step Action

11. To view the Accounting entries for Receipts relavant to the receipts Click the View Accounting menu.

or

Press [V].

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Training Guide Cenvat Accounting

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Step Action

12. View the Accounting entries Created for Receipts. Navigate by pressing Down Arrow or Up Arrow from Account Type Field to view other accounting entries. Click in the Currency field.

Training Guide Cenvat Accounting

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Step Action

13. View the Cenvat Accounting entries generated for this receipt on claiming the Cenvat. Respective Register is debited and credit will be made to Receiving Inventory Account. End of Procedure.

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Training Guide Cenvat Accounting

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Cenvat on Capital Goods Procedure Oracle enables claiming of cenvat amount on receipt of materials at Gate entry. Pre-requisite is to claim cenvat is the purchase order should have excise type of tax attached and the organization should be excisable. If cenvat invoice is not received or cenvat claim is to be done by person other than the person who prepares GRN, oracle provides separate form to claim cenvat. On claiming cenvat, the accounting entries to account 50% cenvat will be created by the system and the cenvat registers and balances will be updated. Balance 50% will be accounted in Cenvat Receivable account and will be eligible for claim in the next financial year.

Step Action

1. View the tax details for a receipt made for capital item. Scroll to the right to ensure modvat is there and note the 100% amount.

Training Guide Cenvat Accounting

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Step Action

2. Note that recoverable flag is check. This indicates Cenvat is eligible for this transaction. Further note the eligible cenvat amounts. To view the Register / Accounting Click the Tools menu.

or

Press [Alt+T].

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Training Guide Cenvat Accounting

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Step Action

3. To view the Register details Click the View Registers menu.

or

Press [R].

Training Guide Cenvat Accounting

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Step Action

4. View RG23 A Part I Details and Part II Details Click the RG23 Part 2 tab.

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Training Guide Cenvat Accounting

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Step Action

5. To view the Accounting entries Click the View Accounting menu.

or

Press [V].

Training Guide Cenvat Accounting

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Step Action

6. View the accounting entry created for the receipt. To view other entries place the cursor to Account type field and Press [Down].

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Training Guide Cenvat Accounting

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Step Action

7. View the Cenvat Accounting entries. Entries are created initially for 100% claim. Press [Right].

Training Guide Cenvat Accounting

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Step Action

8. View the accounting entries created for reversing 50% claim. 50% of eligible modvat will be accounted in Cenvat receivable account.

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Training Guide Cenvat Accounting

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Step Action

9. To view query details relating to unclaimed cenvat on capital goods for previous year enter the above details and use find button. Click the Last Years Claim Only option.

Training Guide Cenvat Accounting

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Step Action

10. If you want to review capital entries relating to current year then choose the options as above.

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Training Guide Cenvat Accounting

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Step Action

11. View the Total Eligible amount for this Receipt.

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Step Action

12. View Total claimed amount. The claim is towards current year eligible amount.

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Training Guide Cenvat Accounting

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Step Action

13. If you want to proceed with claiming Cenvat in the same financial year, Oracle provides an alert to that effect. Click the Claim CENVAT option. Click the Claim button.

or

Press [Alt+C].

Training Guide Cenvat Accounting

Chain Sys ACE

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Step Action

14. User can go-ahead to claim cenvat. This option should be used based on the business need only. Press [Right].

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Training Guide Cenvat Accounting

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Step Action

15. View the accounting entries created for balance 50% End of Procedure.