Excise duty process for AS SUCH Sale of Capital goods

This functionality is specific for India.

The excise duty functionality for outgoing goods deals with the sale of AS SUCH capital goods (goods that are not used for manufacturing). When AS SUCH capital goods are sold, all the credit availed against them must get reversed.

When the goods sold are not used and the receipt date is prior to March 31st of the financial year, you must transfer the amount manually from CENVAT Credit Deferred Account to CENVAT Credit Available Account in Financials. The CENVAT credit amount availed gets reversed. For details, refer to Financial postings for AS SUCH sale of capital goods.

  1. Create Sales order
    In the Sales Order Lines (tdsls4101m000) session, select the Excise Applicable check box, and create a sales order. Select the Capital Goods check box to indicate that the sales order line is a capital goods transaction. Following are the possible scenarios:
    • If Capital Goods Used check box is selected, the excise duties must be recalculated.
    • If Capital Goods Used check box is not selected, you must manually link the Original receipt and the Receipt Line. In case, excise duties are not recalculated, credit availed before must get reversed.
  2. Approve the sales order
    In the Sales Order Lines (tdsls4101m000) session, on the appropriate menu, click Approve.
  3. Release the order to warehouse
    In the Sales Order - Lines (tdsls4100m900) session, on the appropriate menu, click Release to Warehousing; the sales order is released to Warehousing. Sales order lines are copied to outbound order lines in the Outbound Order Lines (whinh2120m000) session. Generate and release the outbound advice.
  4. Capture excise shipment information
    In the Capture GPD Shipment Header LR Information (whinh9145m00l) session, enter the following information of the goods shipped:
    • Dispatch Destination
    • Reason for Removal
    • Remark I
    • Remark II
    • In the Capture GPD Shipment Header LR Information (whinh9145m00l) session, on the appropriate menu, click GPD Shipment Line LR Information; the GPD Shipment Line LR Information (whinh9146m00l) session opens. Select the shipment line and on the appropriate menu, click Capture GPD Shipment Line LR Information; the Capture GPD Shipment Line LR Information (whinh9148m00l) session opens. Enter the following lorry details :
      • LR Number
      • LR Date
      • Lorry Number
      • Number of Packages
    The excise invoice must be printed if the Sales Cum Excise Invoice is not selected in India Localization Parameters (tccom9136m00l) session.
  5. Confirm Shipments
    In the Capture GPD Shipment Header LR Information (whinh9145m00l) session, on the appropriate menu, click Approve to approve shipment lines. LN does not allow you to confirm the shipment without approving the information. Postings are made to Financials only when the Goods pass out document is printed in Invoicing.
  6. Release the order to Invoicing
    The sales order can be released to invoicing after the goods are delivered. In the Sales Order - Lines (tdsls4100m900) session, on the appropriate menu, click Release Sales Orders/Schedules to Invoicing; the Release Sales Orders/Schedules to Invoicing (tdsls4247m000) session opens. Release the order to Invoicing.
  7. Print sales cum excise invoice
    In the Compose/Print/Post Invoices (cisli2200m000) session, to compose, print and post the Sales Cum Excise Invoice select the following options:
    • Compose
    • Print
    • Post
    If the Sales Cum Excise Invoice check box is selected in the India Localization Parameters (tccom9136m00l) session, the goods pass out document with commercial invoice is printed in Invoicing. Otherwise, only the excise invoice is printed in Warehousing.
  8. You can reverse the availed CENVAT credit. When the Item Category field is set to Non-Capital, and the Receipt date is prior to March 31st, transfer the balance from CENVAT Credit Deferred Account to CENVAT Credit Available Account in Financials. You can view the details of CENVAT credit accounts balance in the Display Credit Balances (tctax9535m00l) session.
Note

If the capital goods to be sold are not used, duties must not be recalculated. You must reverse the CENVAT credit taken.

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