Recording Accounting Entries for Customs Duties
The Excise Invoice Posting subprocess creates the accounting entries needed to record excise duties and customs duties. These accounting entries are stored in the EXD_ACCTG_LINE record.
Note: To process these accounting entries into your general ledger system, the Journal Generator Template should be mapped to pick up the relevant fields in EXD_ACCTG_LINE table.
For the internal supplier excise invoices, the Excise Invoice Posting subprocess creates accounting entries for the CENVAT Value - Raw Material register (for raw materials) and the CENVAT Value - Capital Goods register (for capital goods). Run this subprocess using the Register Update process page. Once the Excise Invoice Posting subprocess creates the accounting entries, the new details of posting date and accounting document reference are stored in the internal excise invoice table.
This subprocess retrieves each receipt line from the internal supplier excise invoice table and performs the following validations before posting:
Confirms the Excise Quantity Register Update subprocess was successfully completed.
Verifies the receipt quantity on the receipt matches the internal supplier excise invoice table.
Customs duties are applied to good imported into India.
Customs Duties
The Excise Invoice Posting subprocess records customs duties instead of excise taxes for each receipt from an imported item by crediting the CENVAT Clearing Imports ACD account and debiting the appropriate CENVAT account. The CENVAT accounts are the ChartField combinations listed on the Tax Location - ChartFields page by Excise Account Type.
|
Item Tax Type |
Excise Account Type to Debit |
Excise Account Type to Credit |
Source Register |
|---|---|---|---|
|
R (raw materials) |
CENVAT on Raw Materials |
CENVAT Clearing Imports ACD account |
CENVAT Value - Raw Material |
|
C (capital goods) |
CENVAT on Capital Goods And CENVAT Hold on Capital Goods (Split based on percentage in Tax Location - Excise Group page) |
CENVAT Clearing Imports ACD account |
CENVAT Value - Capital Goods |
For the excise adjustment invoices, the Excise Invoice Posting subprocess creates accounting entries for the PLA, CENVAT Value - Raw Material, and CENVAT Value - Capital Goods registers. This subprocess can be run using the Register Update process page. After the Excise Invoice Posting subprocess creates the accounting entries, the internal excise invoice table is updated with the details of posting date and accounting document reference.
PLA
No accounting entries are created by the Excise Invoice Posting process when you enter an excise adjustment to update the PLA register for payment (increase) to your PLA account. Instead, Payables records the payment and its accounting entries.