Excise Duty Continues

Next is adjustment posting for additional excise paid by vendors. Now here, after posting for scrap and materials not used in production, we’ll see for additional excise paid by vendors. So here this process is used if a vendor has increased the amount of excise duty that it originally charged and want to debit the difference to our account. So this is used when the vendor has increased the excise amount, which it has originally charged with us, and we want to debit that difference from our account. So we use this particular type of adjustment posting. So here the path is SAP menu, then indirect taxes, then excise general voucher. Then we’ll click on the create button for additional excise. Then we’ll enter the data, which is required, like company code document number, plant, excise group, etc. Then we’ll select the account selection, like RG23A or RG23C.

Thank you for reading this post, don't forget to subscribe!

After that, we’ll get a screen where we have to provide the material number and the material description, which we want for that particular Excel’s general voucher.

After that, we’ll click on the choose button (green button below Excise JV), then we’ll adjust the posting date as required. After that, we’ll have to adjust the excise duty. So here the amount of excise duty is entered. Now there are two ways either to enter the line items for different materials and the excise duty accordingly, then we’ll choose this particular icon and enter the line items in the table.

Or we can enter the excise duty only and choose this icon and enter the excise duty in the total fields at the foot of the screen. So these are the 2 ways by which we enter the amount for excise duty. After that, if the duty qualifies as a countervailing duty, that is CVD, then we’ll select the applicable CVD and enter the CVD amount in the BED amount field. Then 7th step is we’ll specify the GL accounts, which are to be posted. So after maintaining the amount for the excise duty and maintaining the CVD details, that is BED amount field.

We’ll specify the GL accounts, which are to be posted. So here we have the GL account descriptions. That is the GL account, which is to be posted. After posting, we’ll save the adjustments posted for this particular account. Then we’ll get a message stating that that excise journal voucher has been successfully created.

So this is how we do the adjustments for excise. Now here, this is the general ledger view for this particular document.

For inventory adjustments, we use a transaction code MB1A, like similar adjustments for postings, and the rest process would be the same. So that was posting for additional excise, which are to be paid by vendors. Next, we have posting for money transferred to PLA.

Now we have something called as PLA registers. So in excise duty, we use this particular adjustments to make an adjustment posting when we transfer money to our personal ledger account. That is PLA. So here the prerequisite would be we have already transferred the money to our PLA at the bank, that is personal ledger account, and using a TR6 challan and have posted the corresponding accounting document. So this is some prerequisite for before making some adjustment posting for money transfer to PLA.

Now the process is SAP menu screen, then we’ll choose the Indirect Taxes Option. Then we have something called journal voucher. Then we’ll click on Create button for TR6 Challan. Here, we’ll enter the data as required, including the document number, and here, we can either enter the challan number or the number of the accounting document.

After that, we’ll click on this Choose icon. If we enter the accounting document number, the system displays the information from it. Then we’ll enter the amount against the accounts that are required, and then we’ll save the adjustment posting. So this is how we make the adjustments. Now we have something called as cancelling the excise invoice.

So this process is followed in order to cancel an outgoing excise invoice, and it reverses any excise duty accounted for it. The process would be SAP menu screen, then we’ll choose indirect taxes, excise journal voucher, create and cancel excise invoice, Or we can go to indirect taxes, then sales and outbound movements. There we have option of excise invoice where we create change display. So there we’ll click on this cancel excise invoice. Here we’ll have to enter the number, year, here in the series group of the excise invoice that we want to cancel. Then a dialog box appears where we have to choose yes, and then we’ll save the adjustment posting. So this is how we cancel a particular excise invoice.

Now after all the adjustments for scrap, for materials which are not used in production, for additional excise paid by the vendors, and for money transferred to PLA, and how to cancel the excise invoice. Last, we’ll see how to do do the adjustment posting for other transaction codes. For other transactions in excise invoice, we’ll follow the SAP menu path that is indirect taxes, excise general voucher, create another adjustment. Now this process is followed if we want to make an adjustment posting that does not fall into any of the other categories of the adjustment offered by this function. So we can only use an external document as our reference document for this case. So here we’ll have to enter the data and document number and enter the number of the external document that we want to refer to. Then we have something called a CENVAT account selection in the group box, so we’ll select that particular account. Then we’ll specify which account is affected by the adjustment posting.

If the posting does not have to be remitted immediately, we’ll select fortnightly payment radio button. Then we’ll select on the continue button. Then we’ll do the adjustment for the posting date as required. And after that, we’ll enter the excise duty detail, that is, amount for the excise duty, either by entering the line items for different materials and then excise duty accordingly. And then we’ll select the line items to be entered in the table or we enter the excise duty only. And then we’ll enter the excise duty in the total fields at the end of the screen. After maintaining the amount for the excise duty, we’ll maintain the GL account, which are to be posted. And after that, we’ll save the adjustment postings. So this is how we’ll do the excise duties postings in SAP Finance.