MODVAT Input Credit - Indian Localization

sureshp
sureshp Member Posts: 17
edited 2010-09-29 in NAV/Navision Classic Client
Hi,

Can anyone please help me the following:

I need to account the MODVAT bill with input credit of excise passed by supplier in purchase invoice. This input needs to be accounted only in RG 23 D register which we cannot calculate through structure option. At the same time whatever the purchase inovice valule only needs to be updated in ledger entries without this input credit. But input credit should update only in RG 23D tables. When I do a sale the input what I got needs to be passed to my customer also through RG23D.

Find below the sampel scenario for reference

Supplier Bill Value : Rs.10,000
VAT : Rs. 400
Total value : Rs.10,400

Modvat credit - BED Rs.500; Ecess Rs.10; SHE Cess Rs.1; Total Input credit Rs.511

When I account the same Rs.10,400 only to be updated in all ledger except excise ledgers. Rs.511 need to be updated in excise and RG 23D register. When I do a sale Rs.511 to be debited from both excise and RG 23D register.

I think this is the common scenario in terms of all trading business when they deal with modvat purchase/sale.

Awaiting reply from experts....

Thanks & Regards,
Suresh

Comments

  • reema
    reema Member Posts: 255
    Place check mark In company information card – Trade co field.
    In Location card place a check mark in the field = Trade location.
    Fill the cenvat receivable(trading account) in Excise setup.
    In Purchase & payables setup, sales & receivables setup define the different number series.

    In posting setup define the accounts for sales , purchase .
    Create the purchase order and post
    Then system will update RG 23 D
    At the time of sales also system will update the RG 23 d.
    reema
  • ssingla
    ssingla Member Posts: 2,973
    For more detailed information refer to HF1 of NAV 4.0 SP3
    CA Sandeep Singla
    http://ssdynamics.co.in
  • sureshp
    sureshp Member Posts: 17
    Hi all,

    Thanks for your reply.

    My clarification is we cannot calculate the excise based % defined in the excise setup in MODVAT purchase bills. Because the supplier material value this amount is included already and he will add other cost + profit top of it.

    This is the credit will not be added in the invoice total (shown by the supplier in his bill separately) and supplier will pass on to us (if he is a first stage dealer and paid the exicse duty on his purchase) which should not be posted to vendor or purchase ledgers. But it should update RG 23 D only.

    I hope you will be in position to understand this scenario and help me on this.

    Awaiting reply from experts....

    Thanks & Regards,
    Suresh
  • ssingla
    ssingla Member Posts: 2,973
    The amount of excise received from the vendor will not form part of our cost as we will transfer the amount on sales invoice. Therefore our cost will be Amount on invoice - Cenvat credit. If you look at the manuals I referred, It is done in the same fashion.
    CA Sandeep Singla
    http://ssdynamics.co.in
  • sureshp
    sureshp Member Posts: 17
    Hi

    My customer is using 5.0 sp1 version. Even I checked the material you referred. But it is mentioned that amount will post inclusive of excise. Please let me know in material where it is mentioned that excise will post RG 23 D only.

    Kindly help me.

    Thanks & Regards,
    Suresh
  • ssingla
    ssingla Member Posts: 2,973
    sureshp wrote:
    Hi

    My customer is using 5.0 sp1 version. Even I checked the material you referred. But it is mentioned that amount will post inclusive of excise. Please let me know in material where it is mentioned that excise will post RG 23 D only.

    Kindly help me.

    Thanks & Regards,
    Suresh

    Why you require such a functionality. This will not be right from the accounting point of view. The cost of goods will be calculated after deducting the amount of cenvat credit.
    CA Sandeep Singla
    http://ssdynamics.co.in
  • sureshp
    sureshp Member Posts: 17
    Hi,

    Can I have your contact no. please so that I will call over phone and explain you the scenario in detail. Also let me know your convenient time on Monday (25th).
  • vicky_dada
    vicky_dada Member Posts: 106
    Hi sureshp, how did you come out of this, I am exactly struck in the same place,

    I am purchasing the goods in manufacturing location,
    Qty = 100, unit price = 1000, VAT = 14.5. Total amount to vendor 100000+14500 = 145000. Vendor is passing the excise credit of 5000.

    Can you please let me know how to account this
  • sureshp
    sureshp Member Posts: 17
    Hi,
    Please enter the transaction as below:


    Qty 100
    Unit price 950 (100000-5000/100)

    Manually enter the excise amount (5000) as per breakup.

    select the relevant structure and post the same.

    Regards,
    Suresh
  • dayanand25
    dayanand25 Member Posts: 1
    Hi SureshP,

    What should be done at the time of sales of this item ?
    how do we nullify the 5000 credited in excise account at the time sales as we are passing on the credit to our customer ?

    Regards,

    Dayanand VK

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