Excise

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Excise Integration in ERP for the Government of India compliance.

ERP Excise module is integrated with other modules such as accounts, purchase, sales. Excise duty needs to be considered for imports purchase of items to India as per rules.

1. The access to this Excise menu is given to authorize person only, using the User Manage module. It is recommended that at least two persons be given individual log in id and secret password.

The following masters (appears under other master menu) that are required for preparing excise reports. The same needs to be updated as and when a new item (product) is added or when Tariff heading changes.

2. Excise Master database

2.1.1. Excise Tariff Master

2.1.2 This contains the following information

Excise Tariff number e.g. 76109090

Chapter heading e.g. M V PARTS

This will be used in Item master while creating a new item, and if the same is excisable then above information will automatically appear in the item master data entry screen.

Once the item with appropriate excise information is saved the same will be defaulted while preparing sales invoice.

2.1.3 Bank Master

This contains bank information required for the TR 6 Challan.

2.1.4 Customer Master

2.1.5 Supplier Master

In Purchase->Purchase Master -> Supplier Master. Click on this and one form opens of Supplier Master.

Now select supplier from supplier list. Click on edit button and then enter the dealer type as whether he is first stage dealer, second stage dealer or manufacturer.

Save the document. These postings will appear in CenVAT Register.

2.1.6 Item Master

Enter the tariff heading and no. for raw material and this will effect in CenVAT register.

2.2 Excise Transactions

2.2.1 Excise Debit entry

Select period – form date (always first of the month) and to date.

All the sales invoice pertaining to the period selected will be shown.

Please tick on ‘Select ALL’ tick box to select all invoices. (Recommended). Exceptionally, if user wants to deselect last few invoices then untick the tick box in front of each invoice. This may be necessary in case sufficient credit amount is not available.

Enter amount under CenVAT column from where you wish to avail credit. Cess will be calculated automatically. User cannot avail more credit than available; ERP will give a pop up message as shown below.

Next time, ERP will show the revised status.

This screen shows Differential Duty Payable amount.

The duty required to be paid by gar 7 (TR 6) or PLA.

2.2.2 Excise Credit entry

PLA

3 Credit available from purchase of Input (of raw material)

3.1.1 GAR 7 Excise Challan (TR6 Challan)

The differential duty will be paid through the GAR 7 Challan (formerly TR6 Challan). The bank information will come through Bank Master automatically.

Enter cheque no. and date.

Enter the Cenvat Amount and Ed. Cess will get calculated automatically.

3.1.2 PLA Transfer

The differential duty which is paid through TR6 Challan, same Excise duty and Ed. Cess should be entered in PLA Transfer.

Enter Excise Duty and Ed. Cess.

In narration field the user can enter narration.

Click on save button. The PLA Transfer is now saved and a posting goes in PLA Transfer Register.

Its effect also goes to ER1 Register.

Purchase Voucher

In Inventory->Inventory transaction-> GIN R/M Bought Out. Click on that and a form will open.

Now through open window open the GIN which you want to edit regarding excise duty and ed. cess.

Now enter Excise Invoice no., and then enter 16% excise duty and 2% Ed. cess value.

For 1^st Stage Dealer and 2^nd Stage Dealer the user will enter 16% Excise Duty and 2% Ed. cess manually.

For manufacturer Assessable amount on that 16% Excise Duty, 2% Ed. cess, Vat, Freight and then calculate Total amount.

Now save the document

Now prepare a GIN for capital goods. When you make that GIN then its postings will appear in Cenvat Register – Capital Goods.

3.1.4 GIN (Offload / Subcontractor)

Similar way you take credit from your third party. For that you need to put excise duty and ed. cess for GIN (Offload). When you prepare that and save those postings automatically goes in CenVAT register.

The effect of excise duty and ed. cess entered through GIN R/M Bought Out or GIN -Offload will appear in Cenvat register-input.

3.1.5 Sales Invoice.

Through sales invoice excise duty & ed.cess is being paid. You also enter the vat. Its postings goes automatically to DSA Register, Sales Tax Register, ER1 Register, Cenvat Register as debit entry.

3.1.6 Sales Rejection Invoice

The material rejected by the customer will be taken in by RMN in ERP. If rework is done then it will be given back to the customer by Sales Rejection Invoice.

For sales rejection in Order fulfillment->sales transaction->click on RMN.

Its effect will be seen in Sales Rejection Register as well as in ER1 Register

3.1.7 Purchase Rejection Invoice

For the postings in Purchase Return Register -> while doing QC for raw material if you reject material i.e. from 100 Kg you reject 10 Kg then that 10 Kg will go in rejection location.

In Order fulfillment->Sales transaction-> Purchase Return Sales Invoice. Prepare Purchase Return Sales Invoice. That 10 Kg will be returned to the supplier. Its effect goes in Purchase Rejection Register, Sales Tax Register, Cenvat Register & ER1 Register.

3.2 Excise Reports

ERP captures Excise information from various transactions automatically and prepares Excise reports as follows:

3.2.1 ER1 Register

Summary will appear from Input, Capital Goods, Sales Invoice, Purchases, Purchase Return, Sales Return and Service Tax and PLA.

3.2.2 CenVAT Register – ERP Input Material

This gets updated automatically through GIN (R/M Bought Out). The credit availed through Purchase will be shown.

PLA Register

The differential duty paid will get posted in PLA Register for that month.

3.2.3 Sales Rejection Register

Material rejected by the customer will be again given by Sales Rejection Invoice. The excise duty paid by normal invoice will be reverted. Its postings will go automatically in Sales Rejection Register, Sales Tax Register, ER1 Register.

3.2.4 DSA Register

In ERP Daily Stock Account Register ( DSA or RG1) is prepared automatically based on Sales Invoice. Quantity ‘Removal From Factory’, Excise Duty Payable, etc. is captured and displayed. Summary shows Excise heading (description) wise quantity and amount with CENVAT, Cess, S. & HS Edu. Cess amount columns (Please click on sample to view). DSA also captures CT3 related info and displays accordingly.

3.2.5 SERVICE TAX CREDIT

Its automatic postings will go in Service Tax Credit Register, ER1 Register

3.2.6 Excise Tariff Wise Sales

This shows sales as per particular tariff. For e.g. Tariff no 73201011, how much total sale is done under this will be computed automatically.

3.2.7 Purchase Rejection Register

All purchase rejection postings will go in this register.
3.2.8 CenVAT Credit – Input
Credit availed through purchases will get posted in this register
Rule (4) (5) (A) CenVAT Credit:

When you prepare GIN (Offload) which is under inventory->inventory transaction-> GIN (Offload). When you prepare 57 F 4 Challan and its respective GIN its postings goes in the above mentioned excise document.

2.2 Excise Transactions

2.2.1 Excise Debit entry

2.2.2 Excise Credit entry

3.2.6 Excise Tariff Wise Sales

Rule (4) (5) (A) CenVAT Credit: