SP3 Help

Microsoft Business Solutions Navision 4.
0- Fringe Benefit Tax
Table of Contents
Overview of Functionality..................................................................................... 3 Detailed Setup ................................................................................................... 3 Comprehensive Functionality ............................................................................ 3 Reports .............................................................................................................. 3 Fringe Benefit Tax ................................................................................................ 4 Types of Fringe Benefits which are Liable for Tax: .............................................. 4 Reimbursement of Expenditure from Client ......................................................... 6 Net Expenses to be Considered in case of Recovery from Employees .................. 6 Capital or revenue expenditure ............................................................................ 6 Value of Fringe Benefits ....................................................................................... 6 Value of Deemed Fringe Benefits ......................................................................... 7 Computation of Fringe Benefits Tax Liability ....................................................... 9 Advance Payment of Fringe Benefit Tax............................................................. 10 Return of Fringe Benefits.................................................................................... 10 Setup- Fringe Benefit Tax ................................................................................... 11 Accounting Period ........................................................................................... 12 Groups ............................................................................................................. 13 Rates ............................................................................................................... 14 G/L Account Card ............................................................................................ 16 General Ledger Setup...................................................................................... 17 Dimensions ...................................................................................................... 18 Transactions ........................................................................................................ 20 Booking of the Expenses.................................................................................. 20 Viewing the Ledger Entries .......................................................................... 21 In case of Reimbursement from Client ........................................................... 23 Viewing the Ledger Entries .......................................................................... 24 In case of Capitalizing the Advertisement Expense in Balance Sheet ............ 26 Viewing the Ledger Entries .......................................................................... 27 In case Amount has to be Recovered from Employee ..................................... 28 Viewing the Ledger Entries .......................................................................... 29 Update FBT Entries ............................................................................................. 30 Calculation of FBT .............................................................................................. 34 Any Other Heads.............................................................................................. 39 Any Other Deduction ....................................................................................... 41 Settlement of FBT entries ............................................................................... 47 View the history of Calculate FBT ................................................................... 49 Reports................................................................................................................ 51 Appendix ............................................................................................................. 58
Overview of Functionality
Fringe Benefit Tax functionality comprehensively covers the Indian business scenario. This functionality is a standard solution for the employers who are liable to pay FBT under Income tax Act, 1961.
Detailed Setup
FBT functionality contains a detailed setup, which is used in mapping Sections, General Ledgers, Value %, Tax Rates, and Calculation of FBT.
Setup Area
Accounting Period
Description
Accounting periods for FBT are defined here. Codes, Section and Section description are defined here. Section code, effective date Tax %, surcharge %, eCESS %, and Value % are defined here. Select FBT Group Code here. Provision to mention the FBT Rounding type and Precision are defined here.
Groups
Rates
G/L Account Card General Ledger Setup
Comprehensive Functionality
In case of General Ledgers, FBT setup maintained in the program comprehensively covers the following: Updations of FBT Entries by selecting the type of expenses (Reimbursement from client, Recovered from employee, Accounted in balance sheet). Calculation of FBT with date, Global Dimension 1 code, and Global Dimension 2 code filters Settlement of the calculated FBT amount
Reports
The Fringe Benefit Tax report is the standard solution for the employers to furnish the annual return of FBT and also helps the auditors to furnish annexure II of form 3CD. FBT
entry G/L report is provided to identify that how much FBT is payable or paid for particular General Ledger.
Fringe Benefit Tax

The taxation of perquisites -- or fringe benefits -- provided by an employer to his employees, in addition to the cash salary or wages paid, is fringe benefit tax. Any benefits -- or perks -- that the employee (present or former) get as a result of their employment are to be taxed, but the tax is payable by the employer. The benefits include employee compensation other than wages, tips, health insurance, life insurance, and pension plans. Section 115WB of the finance bill defines fringe benefits as: any privilege, service, facility, and amenity directly or indirectly provided by an employer to the employees (including former employees) during their employment period. These benefits also include reimbursements, made by the employer either directly or indirectly to the employees for any purpose, contributions by the employer to an approved superannuation fund as well as any free or Concessional tickets provided by the employer for private journeys undertaken by the employees or by their family members.
Types of Fringe Benefits which are Liable for Tax:

As per section 115WB (1) of the income tax, fringe benefits mean any consideration for employment provided by the way of: (a) Any privilege, service, facility, and amenity, directly or indirectly provided by an employer, whether by the way of reimbursement or to his employees (including former employee or employees) (b) Any free or Concessional ticket provided by the employer for private journeys of the employee or their family members (c) Any contribution by the employer to an approved superannuation fund for employees
As per the finance bill, fringe benefits shall be deemed to have been provided if the employer has incurred any expense or made any payment for the purposes of: Entertainment Festival celebrations Gifts Use of club facilities
Provision of hospitality of every kind to any person whether by way of food and beverage or in any other manner, excluding food or beverages provided to employees in the office or factory Maintenance of guest house Conference Employee welfare Use of health club, sports and similar facilities Sales promotion, including publicity Conveyance, tour and travel, including foreign travel expenses Hotel boarding and lodging Repair, running and maintenance of motor cars Repair, running and maintenance of aircraft Consumption of fuel other than industrial fuel Use of telephone Scholarship to the children of the employees In case the employer is engaged in the business of carriage of passengers / goods by motor car or by aircraft, a lower percentage of expenses on repair, running, and maintenance of motor cars or aircrafts or fuel has been specified. Similarly for hotels, a lower percentage of the expenses incurred on hospitality has been specified for the purpose of calculating liability under the fringe benefit tax. An employer liable to pay fringe benefit tax is required to furnish a return of fringe benefits before the due date as given in section 115WD. Section 115WE outlines the procedure for the assessment of the return of fringe benefits filed by the employer and the determination of tax or interest payable or refund due and in either case the issue of intimation to that effect. Depreciation of motor car Section 115 WB (2) (H) of the Income Tax Act includes the following for the calculation of FBT: Expenditure on repair of motor car Expenditure on running of motor car including fuel Maintenance of motor car Depreciation of motor car Lease rent of motor car Salary paid to drivers of motor car Rent of garage for motor cars Interest on loan taken to purchase motor cars The depreciation on motor car or on any other asset for the purposes of FBT will be the depreciation, computed under the provision of section 32 of the Income Tax Act .Further; such amount shall be the total amount of depreciation in respect of the relevant block of assets. For example, for the purposes of depreciation on motor car, the amount of
depreciation relating to the block of asset-motor car will be included within the scope of clause (H) of subsection (2) of section 115 WB. Note: For the payment of advance tax on fringe benefits tax, depreciation should be taken on a prorata basis for the payment of advance FBT.
Reimbursement of Expenditure from Client

A company incurs expenditure on traveling, hotel, and on others wholly and exclusively for executing an assignment for its client and the client reimburses the company for such out of pocket expenses. Since the expenditure on traveling, hotel, and on others is incurred by the company and is not by the client, so the company is liable to FBT in respect of such expenditure. However the client will not be liable to FBT in respect of payment of such expenditure (as per circular No 8/2005 dated 29-08-2005). Any reimbursement of expenditure incurred for the purpose of conveyance, tour and travel is an essential component of professional fee paid by the client to the lawyer or auditor. Accordingly, such expenditure is not liable to FBT in the hands of client (as per circular No 8/2005 dated 29-08-2005).
Net Expenses to be Considered in case of Recovery from Employees

Where the employer recovers from its employees, any amount of expenditure incurred for the purposes listed in clause (A) to (Q) of subsection 115 WB, the value of the fringe benefits will be determined with reference to the net expenditure and not with the gross expenditure.
Capital or revenue expenditure

FBT is payable in the year in which expenditure is incurred irrespective of whether expenditure is capitalized or not .However the same expenditure will not be liable to FBT again in the year in which it is amortized and charged to profit and loss account.
Value of Fringe Benefits
Fringe benefits, as per section 115WB(1), means any consideration for employment provided by way of-
Value as per Section 115WC
Fringe benefits, as per section 115WB(1), means any consideration for employment provided by way of-
Value as per Section 115WC
Any privilege, service, facility, amenity directly or indirectly provided by an employer, whether by the way of reimbursement or otherwise, to the employees.
No value given
Any free or concessional ticket provided by the employer for private journeys of his employees or their family members
100% (cost at which the same benefit is provided to the general public) minus any recovery from the employee.
Any contribution by the employer to an approved superannuation fund for employees.
100% (from the assessment year 2007-08, 100% of the amount in excess of Rs. 1,00,000 for each employee).
Value of Deemed Fringe Benefits

. Items of expenditure of deemed fringe benefits as per section 115WB (2). Entertainment Provision of hospitality of every kind by the employer to any person, whether by way of provision of food or beverages or in any other manner whatsoever and whether or not such provision is made by reason of any express or implied contract or custom or usage of trade, but does not includes any expenditure on, or payment for, food or beverages provided by the employer to his employees in office or factory and any expenditure on or payment through paid vouchers which are not transferable and usable only at eating joints or outlets. In the case of an employer engaged in the business of :Value as per section 115WC
20% 20%
5%
Items of expenditure of deemed fringe benefits as per section 115WB (2). Hotel Carriage of passenger or goods by aircraft Carriage of passenger or goods by ship.
Value as per section 115WC
Conference (not being fee for participation by the employees in any conference) Any expenditure on conveyance, tour and travel (including foreign travel), on hotel, or boarding and lodging in connection with any conference shall be deemed to be expenditure incurred for the purpose of conference. Sales promotion including publicity. Employees welfare Conveyance In the case of an employer engaged in the business of :Construction Pharmaceuticals Software
20%
20% 20% 20% 5%
Use of hotel, boarding and lodging facilities
20%
In the case of an employer engaged in the business of :Pharmaceuticals Software Carriage of passenger or goods by aircraft Carriage of passenger or goods by ship.
5%
Items of expenditure of deemed fringe benefits as per section 115WB (2). Repair, running (including fuel), maintenance of aircrafts and the amount of depreciation thereon In the case of an employer engaged in the business of :Carriage of passenger or goods by aircrafts
Value as per section 115WC 20%
0%
Use of Telephone (including mobile phone) other than expenditure on leased telephone lines Maintenance of any accommodation in the nature of guest house Festival celebrations Use of health club and similar facilities Use of any other club facilities Gifts Scholarships Tours, travel, foreign travel (from the assessment year 2007-08)
20%
20%
50% 50% 50% 50% 50% 5%
Computation of Fringe Benefits Tax Liability

Fringe Benefit Tax Rate: Fringe benefit tax is calculated at the rate of 30 per cent of the value of fringe benefits. Surcharge: Fringe benefit tax is calculated at the rate of 30 per cent will be increased by surcharge as follows: Different employers If the employer is an AOP/BOI Nil If fringe benefit does not exceed Surcharge as a % of fringe benefits tax
Rs. 10,00,000 10% If fringe benefit is above Rs. 10,00,000
If the employer is an artificial juridical 10% person If the employer is a firm If the employer is a domestic company If the employer is a non-domestic company If the employer is a local authority 10% 10% 2.5% Nil
Education CESS: Education CESS is 2 per cent of fringe benefit tax and surcharge.
Advance Payment of Fringe Benefit Tax

Every employer shall pay advance tax on his current fringe benefits. The amount of advance tax payable in the financial year shall be 30 percent (+ surcharge + eCESS) of the value of the fringe benefits paid or payable in each quarter. The advance tax shall be payable on or before 15 th day of the month following such quarter. The advance tax payable in relation to the quarter ending on March 31 of the financial year shall be paid by the assesses on or before March 15 of the said financial year. However the last quarter installment of the advance tax may be paid on an estimate basis, as the same has to be paid before the closure of the financial year.
Return of Fringe Benefits

Every employer who has paid (or made provisions for payment) fringe benefits to his employees during the previous year, will have to submit the return of fringe benefits to the Assessing Officer on or before the due dates given below: Different employers If the employer is a company If the employer is a person other than company and books of account are required to be audited. If the employer is a person other than company and books of account are not Due date of the assessment year October 31 October 31
July 31
Different employers required to be audited.
Due date of the assessment year
Setup- Fringe Benefit Tax

NAVIGATION: FINANCIAL MANAGEMENT SETUP FRINGE BENEFIT TAX
Accounting Period
NAVIGATION: FINANCIAL MANAGEMENT SETUP FRINGE BENEFIT TAXACCOUNTING PERIOD
Fill in the fields according to these guidelines: Field

Create Year
Description
Define a new financial year by clicking Create Year button.
Close Year
Close the financial year by clicking Close Year button. Once you closed the financial year then the program will not create any FBT entry, related to that period
If user has not created Accounting period then program will not create FBT entry for those G/L accounts which are mapped with FBT groups.

Start Date
Description
Define the start date of the financial year.
End Date
Define the end date of the financial year.
Groups
NAVIGATION: FINANCIAL MANAGEMENT SETUP FRINGE BENEFIT TAXGROUPS

Code Description
Description
Define the code in this field. Define the description of the sections as defined in the section 115 WB of the Income Tax Act. Define the sections in the field.
Section
For calculation of FBT it is mandatory to create FBT groups and these FBT groups should attach to particular G/L accounts.
Rates
NAVIGATION: FINANCIAL MANAGEMENT SETUP FRINGE BENEFIT TAXRATES
Fill in the fields according to these guidelines:
Field
FBT Group
Description
Choose the FBT Group from the look up list. Define the date from when the FBT tax rates are applicable. Define the FBT tax % in this field Define the FBT eCess% in this field Define the value % as defined in the section 115 WC of the fringe benefits provided by the employer to his employees.
Effective Date
Tax % eCESS % Value %
Rates are mandatory to calculate FBT with effective date. If the rate has been changed during the period user has to create another line for same section with new effective date. Program will calculate FBT according to rates defined with effective date.
G/L Account Card

NAVIGATION: Financial Management General Ledger Chart of Accounts Account Card

FBT Group Code
Description
Select the FBT group Code for the specific GL account from the lookup list. It will map
the GL account with FBT group.
The user can view the GL accounts mapped with different FBT groups by pressing F5 or selecting List menu item in Account menu button on the G/L Account Card.
The user can view different GL accounts which are mapped with different FBT groups.
General Ledger Setup

NAVIGATION: Financial Management Setup General Ledger Setup
FBT rounding precision will be defined in the General ledger setup.

FBT Rounding Type
Description
Define whether FBT amount will be rounded up, down, or nearest. The program uses this information to round the FBT amount to the whole number. The field defines the size of the interval that will be used for rounding FBT amounts. FBT amount, eCess amount, surcharge amount will be rounded off to whole numbers individually.
FBT Rounding Precision
Dimensions
NAVIGATION: Financial Management Setup Dimensions
Create dimensions like Department and Project. Also create dimensions value like ADM, Sales, and others under Department by selecting dimensions value in Dimension menu button.
NAVIGATION: Financial Management Setup General Ledger Setup
Select the value of Global Dimensions 1 Code and Global Dimensions 2 Code from the lookup lists. The code user will select will be available while doing transaction through Journals. The same will display in Calculate FBT form while calculating FBT.
The user can change the Global Dimension code by selecting Change Global Dimensions menu item in Functions menu button on the General Leger Setup Dimensions tab.
Transactions
Booking of the Expenses
NAVIGATION: Financial Management General Ledger General Journal
To make the transactions in G/L Accounts which are under FBT, fill the fields in General Journal as follows:
First Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Amount: Bal. Account Type: Bal. Account No.: 01/04/06 Payment G0037 G/L Account 8420 Entertainment and PR 10000 G/L Account 2910
Second Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Amount: Bal. Account Type: Bal. Account No.: 01/04/06 Payment G0038 G/L Account 8410 Advertisement 15000 G/L Account 2910
Third Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Amount: Bal. Account Type: Bal. Account No.: Post the Journal 01/04/06 Payment G0039 G/L Account 8430 Travel 5000 G/L Account 2910
Viewing the Ledger Entries

NAVIGATION: Financial Management General Ledger History Registers
The user can view the posted transaction- G/L Entry
The program will create the following entries: For the document number: G0037 Particulars Type Amount(Rs) Entertainment and PR DR 10000 To, Cash CR 10000
For the document number: G0038 Particulars Advertisement To, Cash Type Amount(Rs) DR 15000 CR 15000
For the document number: G0039 Particulars Travel To, Cash Type Amount(Rs) DR 5000 CR 5000
Also all the above transactions will reflect in FBT Entry table. The transaction on G/L account can be done in the following ways. General Journal Cash Receipt Journal Payment Journal Purchase Invoice Purchase Order Purchase Journal Sales order Sales Invoice The user can post the above transaction with Global Dimensions. In this case two fields will come automatically like Department code and Project code. Select Department Code as Sales from lookup list.
In case of Reimbursement from Client

To understand this case we will take the example of a Travel account. Initially Rs. 5000 is debited and now Rs. 2000 will be reimbursed from client.
To Credit Travel Expense account, fill the fields in General Journal as follows:
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Amount: Bal. Account Type: Bal. Account No.: Post the Journal
01/04/06 Blank G0042 Vendor (Client) 10000 Delhi Postmaster 2000 G/L Account 8430 (Travel account)

The program will create the following entry: For the document number: G0042
Particulars Vendor To, Travel
Type Amount(Rs) DR 2000 CR 2000
The above entry will reflect in FBT Entry table.
In case of Capitalizing the Advertisement Expense in Balance Sheet

To understand this case we will take the example of an Advertisement account.
Initially Rs. 15000 is debited and now Rs. 5000 will be capitalized in the balance sheet.
To credit the Advertisement Expense account, fill the fields in General Journal as follows:
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Amount: Bal. Account Type: Bal. Account No.: Post the Journal 01/04/06 Blank G0043 G/L Account 1210 Operating Equipment 5000 G/L Account 8410 (Advertisement account)

The program will create the following entry: For the document number: G0043 Particulars Type Amount(Rs) Operating Equipment DR 5000 To, Advertisement CR 5000 The above entry will reflect in FBT Entry table.
In case Amount has to be Recovered from Employee

To understand this case we will take the example of an Entertainment and PR account. Initially Rs. 10000 is debited and now Rs. 5000 will be recovered from employee .
To Credit Entertainment and PR account, fill in the fields in General Journal as follows:
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Amount: Bal. Account Type: Bal. Account No.: Post the Journal 01/04/06 Blank G0051 G/L Account 2350 recovered from Employees A/C 5000 G/L Account 8420 (Entertainment and PR account)

The program will create the following entry: For the document number: G0051 Particulars Type Amount(Rs) Recovered from Employee A/C DR 5000 To, Travel and PR CR 5000 The above entry will reflect in FBT Entry table.
Update FBT Entries

NAVIGATION: Financial Management General Ledger Periodic Activities Fringe Benefit Tax Update FBT Entries
In Update FBT Entries there are three types of Expenses which user can assign with FBT entries. By default blank option will be there against each FBT entry. Following are the Types of Expenses in Update FBT Entries: Option Reimbursement from Client Description If any expense is reimbursed from client then it will be considered for the purposes of FBT and it will be shown in the
Recovered from Employee
Reimbursement from client column of the Calculate FBT form. If any expense is recovered from employees that will not be considered for the purposes of FBT and it will be shown in the amount recovered from Employees column of the Calculation of FBT Form.
Accounted in Balance Sheet
If the entry is related to the Balance Sheet. If that expense is coming under section 115 WB of the Income Tax Act then FBT should be paid. This amount will be shown in Accounted in Balance Sheet of Calculate FBT form.
In this form, the user can select the type of expenses like Reimbursement from Client, Accounted in Balance Sheet, and Recovered from Employee from the drop down button. By default the Type of Expenses field appears blank for all transactions. The program will update the type of expenses based on selection from the drop down button. The user can navigate any GL entry by pressing Navigate menu button. After clicking the Navigate button, the program will show the posted transaction .
User can view the G/L Entry.
User can view the FBT entry.
After selecting the type of expenses close the form. Note 1: The program will show only those FBT entries which are not settled. If the user has assigned type of expense and calculate FBT and also done the settlement process after this those transactions will not come in the form. Note 2: If after crediting the expenses account with some value and assigning the credited entry with some type of expense, the user realizes that the credited entry is wrongly posted and it has to be reversed. For this, after debiting the expenses account with same amount the user has to select the same type of expense which was selected for the negative entry in the Update FBT entries. Note 3: The user can change the type of expenses any time before settlement. Only the user has to suggest lines again in the Calculate FBT form.
Calculation of FBT
NAVIGATION: Financial Management General Ledger Periodic Activities Fringe Benefit Tax Calculate FBT
To calculate FBT, fill in the fields according to these guidelines: Fields

Starting Date Ending Date Department Filter
Information
01/04/06 (enter the starting date) 30/06/06 (enter the ending date) Left Blank (If you want to select Department Filter select it from the lookup list) Left Blank (If you want to select Project filter select it from the lookup list)
Project Filter
Click Suggest Lines in Functions menu button to populate the lines in Calculate FBT form depending upon the filter options. Note 1: If some transactions are posted with dimensions codes and some are posted without dimensions code, then the user has to leave the Dimensions field blank to calculate FBT on all transactions. If the user wants to calculate the FBT only for the transactions posted with dimensions then the user can give the dimensions in the filters. If the user wants to calculate the FBT for only those transactions which are posted without Dimensions, then the user has to enter in the filter options of Global Dimensions 1 and Global Dimension 2 code, then the program will suggest only those transactions which are posted without dimensions.
Note 2: If the user has suggest the lines with some different dimension filters and again he/she wants to change the dimension filters, system will give the message Click Suggest Lines as Dimension has been changed. User has to click suggest lines again to populate the lines according to dimension filters. If user will ignore the message and directly try to settle then system will not allow the user to settle the form and give the error message Click Suggest Lines as Dimension has been changed.
The program will show all the FBT Groups that has been created in Groups setup. After clicking the suggest lines program will populate the lines for each defined sections.
Following are the fields system will automatically fill the values after clicking Suggest Lines: Fields
FBT Group
Description
The program will populate the FBT group which is defined in setup. This field gets the value based on the posted entries in the corresponding G/L accounts. (Here system will show the value by using the formula: All Blank (type of expenses) A/C in Balance Sheet Reimbursement from client assigned in Update FBT Entries). This field will get the corresponding value if Accounted in balance sheet is selected in the Update FBT Entries window. The user can view the entries from the drill down button.
Debited to profit and loss A/C
A/C for in the balance sheet
Fields
Reimbursement from client
Description
This field will get the corresponding value if Reimbursement from Client is selected in the Update FBT Entries window. The user can view the entries from drill down button. This field will get the corresponding value if Recovered from Employee is selected in the Update FBT Entries window. The user can view the entries from the drill down button. The program will automatically fill the values in this field by calculating (Debited to profit and loss A/C + A/C for in the balance sheet + Reimbursement from client + Any other head - Recovered from Employee - Other deduction). This field will get populated as defined in the setup. The program will calculate the value (Amount * Value %). On the calculated value of the fringe benefit is applicable. The program will calculate the tax amount for each line depending upon the Tax % defined in the setup. The program will calculate the surcharge amount for each line depending upon the Surcharge % defined in the setup. The program will calculate the eCESS amount for each line depending upon the eCESS % defined in the setup
Recovered from Employee
Amount
Value %
Value of the fringe benefit
Tax Amount
Surcharge Amount
eCESS Amount
On the footer level of Calculate FBT form following fields will get populated: Fields Total Fringe Benefit Description Total value of fringe benefit calculated for all lines is populated in this field. Total tax amount without rounding for all lines of Calculate FBT form. In this field total tax amount is rounded depending on the precision given in the
Total Tax Amount
Rounded Total Tax Amount
Fields
Description setup. Total surcharge amount without rounding for all lines of Calculate FBT form. In this field total surcharge amount is rounded depending on the precision given in the setup. Total eCESS amount without rounding for all lines of Calculate FBT form. In this field total eCESS amount is rounded depending on the precision given in the setup. The sum of values in Total Tax, Surcharge and eCESS fields will come in this field. The sum of values in Rounded Total tax, Surcharge and eCESS fields will come in this field.
Total Surcharge Amount
Rounded Total Surcharge Amount
Total eCESS Amount
Rounded Total eCESS Amount
Total FBT
Rounded Total FBT
The program will automatically calculate FBT after clicking Suggest Lines.
Any Other Heads

This field is available on Calculate FBT form and this filed is editable.
Click the lookup button available on the field. After clicking the lookup button, a new window will open and here the user can enter the values for FBT calculation.
Fill in the fields according to these guidelines: Fields

FBT Group
Description
CAREXP (This field will automatically populated specific to the line selected on calculate FBT form). Enter the description of the amount you are entering. In this case we are entering depreciation amount for Car expenses.
Description
Amount
Enter the amount which has to be considered for the FBT calculation After entering the amount, the program will automatically display the ending date of the Calculate FBT form. This field is editable, the user can change the date but the date should be in the range of starting and ending date.
Adjustment date
The user can enter as many lines he/she wants. Adjustment date is mandatory, if the user does not mention the date, he/she cannot close the form. After entering the amount, close the form. The program will automatically update the Amount , Fringe Benefit, Tax, Surcharge, and eCESS fields with new values.
The program will also update the fields on the footer level with new values. Any value is entered here will be taken care for calculation of FBT. Any other heads field can be utilized for those values which are not actually stored in the program like Depreciation as per Income Tax Act, etc.
Any Other Deduction

This field is available on Calculate FBT form and this filed is editable.
Click the lookup button available on the field. After clicking the lookup button, a new window will be opened and here the user can enter the values for FBT calculation.

FBT Group
Description
SUPERFU (This field will automatically populated specific to line selected on Calculate FBT form).
Description
This field includes the the description of the amount. In this case we are entering deduction under superannuation fund.
Amount
Enter the amount which has to be
Fields
Description
considered for FBT calculation. (The amount the user enters will be deducted from the total of Debited to Profit Loss, A/C for in B/S, Any other heads, and Reimbursement from client)
Adjustment date
The program will automatically display the ending date of the calculate FBT form after entering the amount. This field is editable. The user can change the date should be in the range of starting and ending date.
The user can enter as many lines as he/she wants. Adjustment date is mandatory. If the user does not mention the date he/she cannot close the form. After entering the amount close the form. The program will automatically update the values of Amount , Fringe Benefit, Tax, Surcharge, and eCESS fields with new values. The program will also update the fields on the footer level with new values. Any value is entered here will be taken care for calculation of FBT. Other deductions field can be utilized for those values which are not actually stored in the program like Threshold amount for Superannuation funds, etc. Note: The program will update all fields containing values on run time. After suggesting lines in Calculate FBT form the user can enter the values in Any Other Head or Other Deductions fields with adjustment dates. When the user close the form the program will automatically recalculates the figures. There is no need to select Suggests Lines again if the user is doing any adjustments in the form.
In the above image the user can see that the program has recalculated the values, depending on the values entered in Any Other Head form and Other Deductions form and updated the values of FBT.
Note: If the user wants to change the type of expenses in Update FBT entries after calculating FBT, then the user has to go in Update FBT entries form and there the user can change the type of expenses for the selected entry. After changing the type of expenses the user has to open the calculate FBT form and from the list, he/she has to select the FBT form for which the user has changed the type of expenses. After opening the calculate FBT form again, the user has to click Suggest Lines and the program will automatically updates all the fields with new values. Note: If the user wants to post any other entry, whether debiting the G/L account or crediting the G/L account then also the user has to click Suggest Lines in the form which is already opened in Calculate FBT form. The user can view the report on FBT by clicking Print in Functions menu button. The program will generate the report for those FBT entries which are not yet settled.
If the FBT Group field is blank then system will generate report for all FBT groups, if user will give the filter for FBT group then system will generate report for those particular FBT groups.
Click Preview button to view the report or click Print button to take the printout.
The program will display all the details of unsettled entries. The program will also display the details of values entered in the Any Other Heads and in Other Deductions form.
Settlement of FBT entries

After ensuring that the program has calculated correct FBT for all FBT groups, the user can settle the period by selecting Settlement in Functions menu button.
After clicking the Settlement option the program will settle the FBT entries for the given period and give the message FBT entries are successfully settled.
Note 1: If the Total FBT is calculated in negative (-) then system will not allow the user to settle the form as negative (-) FBT is not going to submit to the government authorities. In this case Program will adjust the negative (-) FBT with Positive (+) FBT in the next period. Note 2: If User has settled the Calculate FBT form for the period say 01/04/2006 to 30/06/06 with some FBT amount and after this user has entered some more transactions pertaining to settled period (01/04/06 to 30/06/06) which are applicable for FBT, then in the calculate FBT form user has to give the starting date (01/04/06) and ending date (30/09/06) and click suggest lines. Program will fill the lines with the values posted between April to June (as these transactions are still unsettled) with transactions posted between July to September. User can adjust the FBT amount in the next period as Fringe Benefit Tax has to be deposited to the government authorities as Advance Tax.
View the history of Calculate FBT

Click the List menu option in FBT Calculation menu button to view the history of settled and unsettled Calculate FBT forms.
After clicking the list menu item the program will open the new form.

Starting Date
Description
Enter the starting date which is entered at the time of calculating FBT. Enter the ending date which is entered at the time of calculating FBT. If Department filter is given at the time of calculating FBT then the program will show otherwise this field will remain blank. If Project filter is given at the time of calculating FBT then the program will show otherwise this field will be blanked. A check mark in this field shows that the period is settled. If this field is blank it means that the period is still open for the settlement.
Ending Date
Department Filter
Project Filter
Settlement
If the user wants to view the settled form then the user has to select the particular line and click OK.
In this settled Calculate FBT form all fields are not editable and also the user can not print the report as this form is already settled. If the user wants to open the unsettled form through the history then he/she has to select the period. If the user wants to create the another form for the same filters and in the history the form is already opened with the same filters then the user has to delete the previous form and then he/she can create the new form in calculate FBT. If the user has entered the values in Any Other Heads and in Other Deductions and then he/she deletes the form then again he/she has to enter the values in Any Other Heads and in Other Deductions in the new form for the same period.
Reports
NAVIGATION: Financial Management General Ledger Reports Fringe Benefit Tax Fringe Benefit Tax
Fill in the fields according to these guidelines to generate the report: Fields
Starting Date
Description
Enter the starting date.( as for example:01/04/06) Enter the ending date.( as for example: 30/06/06) The user can select Department Code from the lookup list.( here it is Left Blank) The user can select Project Code from the lookup list.( here it is Left Blank)
Ending Date
Department Code
Project Code
If the user wants to take a print then he/ she has to click Print menu button. If the user wants to view then he/she has to click the View menu button.
Note: If the user wants to view all the transactions which are posted with dimensions
and without dimensions then the user has to left blank the Department and Project code filters. If the user wants to view the report for only those entries which are posted with some dimensions then the user has to give the dimension code filters. If the user wants to generate report for only those transactions which are posted without dimensions then the user has to enter to view the report. The user can generate the Fringe Benefit tax report for only those transactions which are settled through Calculate FBT form.
System will generate the report for settled entries according to the filter options given by the user.
NAVIGATION: Financial Management General Ledger Reports Fringe Benefit Tax FBT Entry G/L
Fill in the fields according to these guidelines to generate the report:
Field
G/L Account No.
Description
Left Blank. (If want to generate report for particular G/L account, enter the G/L account number). Left Blank. (If want to generate report for Settled then enter Yes) Enter 01/04/06..30/06/06
Settlement Posting Date
If the user wants to take a print then he/ she has to click Print menu button. If the user wants to view then he/she has to click the View menu button
This report will give the details of FBT entries with amount of FBT G/L wise. At the time user will suggest lines in Calculate FBT form this report can be generated. Also user can generate this report after settlement. In this report Any other head and Other Deductions details will not come because user will enter the values in both the
fields for Sections not for particular G/L in calculate FBT form. Also FBT entry contains type of expenses like accounted in Balance Sheet and Reimbursement from client report will not show any FBT amount for these entries. User can give any posting date filter to generate this report. This report will help the user to identify that how much FBT is payable or paid against particular G/L.
Appendix
Case 1:
R Ltd. is a software manufacturing company. The following expenses have been incurred by the company in previous year 2006-07. The Fringe Benefit Tax payable by the company for the assessment year 2007-08 will be computed as under: Expenses on running and maintenance of cars Diwali Expenses Salary of employees Expenses on Boarding and lodging facilities in hotel Expenses on foreign tour Expenses on first aid facility in a dispensary for employees welfare Expenses on exhibition for sale promotion Free club facilities Rent free accommodation to employees Rs. 50,000 Rs. 15,000 Rs. 7,50,000 Rs. 18,000 Rs. 30,000 Rs. 15,000 Rs. 17,000 Rs. 10,000 Rs. 25,000
Computation: Nature of Expenses

Expenses on running and maintenance of cars Diwali Expenses Salary to employees Expenses on boarding and lodging facilities in hotel Expenses on Foreign tour Expenses on first aid facility in a dispensary for employees welfare Expenses on Exhibition for sales Promotion Free club facilities Rent Free accommodation to employees
Quantum of expense
50,000
Value of fringe benefit

20%
Amount of fringe benefit

10,000
15,000 7,50,000 18,000
50% Not a FB 5%
7,500 NIL 900
30,000 15,000
5% Not a FB
1,500 NIL
17,000
Not a FB
NIL
10,000 25,000
50% Not a FB
5,000 NIL
Nature of Expenses
Total value of Fringe Benefit Fringe Benefit Tax payable @ 30% Add : Surcharge @ 10% Add : Education Cess @ 2% Total Fringe Benefit Tax Payable
Quantum of expense
Value of fringe benefit
Amount of fringe benefit

24,900 7,470 747 8,217 164 8,381
Case 2:
Profit and loss account of R Ltd. for the year ending 31-03-2007
Profit and Loss Account For the year ended on 31-03-2007 Particulars
Salaries Bonus Contribution to FPF Postage Telephone Conveyance Traveling Food and beverages to employees in office Conference expenses (Include 11000 towards participation fee of four employees) Entertainment expenses Premium on accident policy of employees Repair and maintenance of motor cars Insurance Premium (includes Rs.10000 for insurance of the motor car)
Amount
300000 36000 30000 18000 52600 24000 30000 40000
Particulars
Gross Profit
Amount
820550
30800
24500 12000 52650
30000
Particulars
Depreciation (includes 21000 towards depreciation of motor car) Net Profit Total
Amount
80000
Particulars
Amount
60000 820550
Total
820550
Computation: Nature of expenditure

Telephone Conveyance Traveling Conference Entertainment Repair & Maintenance of motor car (52650+10,000+21000) Value of Fringe Benefit Fringe Benefit Tax payable @ 30% Add : Surcharge @ 10% Add Education Cess@ 2% Total Fringe Benefit Tax Payable
Amount
52600 24000 30000 19800 24500 83650
Valuation
20% 20% 5% 20% 20% 20%
Amount of Fringe Benefit

10520 4800 1500 3960 4900 16730
42410 12723 1272 13995 280 14275
Microsoft Business Solutions Navision 4.0- Excise on Trading Goods, ER-5 & ER-6 Returns
Table of Contents
Overview of Functionality ...................................................................................... 4 Detailed Setup ................................................................................................... 4 Comprehensive Functionality ............................................................................ 5 Statutory Reports .............................................................................................. 6 Excise on Trading Goods ...................................................................................... 7 ER- 5..................................................................................................................... 9 ER- 6................................................................................................................... 10 RG 23 D .............................................................................................................. 11 Setups for RG 23 D............................................................................................. 11 Company Information ...................................................................................... 11 Location........................................................................................................... 12 Excise Posting Setup ...................................................................................... 13 Sales & Receivable Setup ............................................................................... 14 Purchase & Payable Setup ............................................................................. 16 No. Series........................................................................................................ 17 General Posting Setup .................................................................................... 17 Purchase Order................................................................................................... 18 Viewing the Ledger Entries.............................................................................. 20 Purchase Invoice ................................................................................................ 23 Viewing the Ledger Entries.............................................................................. 24 Sales Order ......................................................................................................... 27 Viewing the Ledger Entries.............................................................................. 28 Sales Invoice....................................................................................................... 31 Viewing the Ledger Entries.............................................................................. 31 Purchase Return ................................................................................................. 36 Viewing the Ledger Entries.............................................................................. 37 Sales Return Order ............................................................................................. 41 Viewing the Ledger Entries.............................................................................. 42 Goods Sent Directly to the Buyer Place by the Manufacturer. ............................ 44 Steps to be Followed by the Manufacturer ...................................................... 45 Steps to be followed by Buyer ......................................................................... 49 Steps to be followed by dealer ........................................................................ 50 Scenario where the manufacturer is also doing the trading activity .................... 50 Goods Purchased for Trading and Further Transferred for Manufacturing ......... 51 Transfer of Goods to Manufacturing Unit from Trading Unit ............................ 51 Viewing Ledger Entries ................................................................................... 53 Capital Goods Purchased for Trading and further Transferred for Manufacturing ............................................................................................................................ 56 Transfer of Capital Goods to Manufacturing Unit from Trading Unit ................ 56 Viewing Ledger Entries ................................................................................... 58 Reports ............................................................................................................... 60 RG 23 D .......................................................................................................... 60 Quarterly Return for Traders ........................................................................... 61 ER- 5 and ER- 6.................................................................................................. 65 Item Card......................................................................................................... 65
Production BOM.................................................................................................. 67 Identify Principal Input......................................................................................... 69 BOM History........................................................................................................ 71 Generation of ER- 5 (Declaration)....................................................................... 73 Filling of ER-5 (Declaration) ................................................................................ 75 BOM History for Filling Status (Declaration) ....................................................... 76 Amendments in Production BOM ........................................................................ 77 BOM History for Amended BOM ......................................................................... 81 Filling of ER-5 (Amendment) ............................................................................... 84 BOM History for Filling Status (Amendment) ...................................................... 85 Generating ER- 6 Return .................................................................................... 87 Appendix ............................................................................................................. 92 Excise on Trading Goods ................................................................................ 92 ER ER - 6 ........................................................................................... 93 5 and
Excise on Trading Goods This feature is developed for the user engaged in manufacturing activity / trading activity. If the user is engaged in manufacturing activity then the system will record the transactions in RG 23 A part1 register. If the user is engaged in trading activity then the system will record the transactions in RG 23 D register. If the user is engaged in both the activities then the system will provide the solution by recording the transactions in RG 23 A part 1 and RG 23 D. When goods are purchased from dealers / depots / consignment agents / importer / first stage dealer / second stage dealer, then the buyer of inputs (manufacturer) can avail CENVAT credit in the following cases:
If dealers / depots / consignment agents / importers, issuing invoice If dealers maintain proper records means RG 23 D registers.
The amount of duty actually paid by dealers / depots / consignment agent should be indicated in invoice on pro rata basis. Excise Returns ER-5 & ER-6 Every manufacturer of final product will annually furnish ER5 form to the Superintendent of Central Excise regarding the description of principal inputs and quantity of such principal inputs required to be used in the manufacture of unit quantity of such final product. for Cenvat is registered with Central excise authorities.
Detailed Setup
Excise on Trading Goods
At Company Information master level, place a check mark in Trading Co. field if the goods are purchased for trading activities. At Location Card master level, place a check mark in Trading Item field if the location is doing trading activities. Separate G/L to be maintained for trading activities through Excise Posting Setup, Sales & Receivables Setup, and Purchase & Payable Setup. Separate number series to be maintained for invoices used for trading activities through No. Series Setup. Excise Returns ER-5 & ER-6 At Item Card level, identify the scrap item for ER-6 return.
Excise on Trading Goods Following features are handled by the system: Recording of purchase transactions in RG 23 D register. Recording of sales transactions in RG 23 D register. Generation of quarterly return for traders. Direct dispatch of goods from the manufacturer to the final buyer. Direct dispatch of goods to the second stage dealer. Duty computation in case of trading of goods. Goods transfer from trading location to manufacturing location.
Excise Returns ER-5 & ER-6 Following features are handled by the system: Identification of principal inputs. Generation of ER-5 return (Annual Declaration).
Filling of ER-5 return (Annual Declaration) Amendment in principal inputs. Generation of ER-5 return (Amendment) Filling of ER-5 return (Amendment) Handling of scrap in ER-6 return. Generation of ER-6 return (monthly return).
Statutory Reports
Following reports are handled by the system: RG 23 D register Quarterly return for traders ER- 5 returns (Annual Declaration) ER-5 returns (Amendment) ER-6 returns (Monthly return)

Who are eligible to distribute CENVAT credit without doing the manufacturing activity?
1) First Stage Dealer 2) Second Stage Dealer 3) Importer
In which conditions first stage dealer, second stage dealer, and importer are allowed to distribute the CENVAT credit without doing the manufacturing activity?
As per rule 9(4) of CENVAT Credit Rule 2004: 1. First stage dealer, second stage dealer, and importer have to register with the Jurisdictional Central Excise Officer in the Divisional office having jurisdiction over his place of business. 2. Maintenance of record, indicating the fact that input or capital goods are supplied from the stock on which duty was paid by the manufacturer of such input or capital goods.
Is there any prescribed format to maintain the record for dealers /importer?
CENVAT Credit Rule 2004 does not prescribe any statutory record but as per rule 9(4) of CENVAT Credit Rule 2004 requires the maintenance of records indicating the fact that the input or capital goods are supplied from the stock on which duty is paid by the producer of such input or capital goods and only an amount of such duty on pro rata basis has been indicated in the invoice issued by him. What is the basis of distributing duty by first stage dealer, second stage dealer and importer at the time of making sales? Amount of duty received should be distributed on pro rata basis among the customers and that should be indicated in the invoice issued by him (regarding the purchase details). How to handle the scenario when the dealer returns the goods? When the goods has been received by the dealer and the same has been rejected by the dealer then dealer should raise the trade CENVAT invoice in the name of vendor and entries for this return will effect in RG23D in issue column.
Can the goods be dt d l t a cr ct y i h i f h n ts e ee s e e r e u rp t b p d c o mf elo u a c r tm y a u a h r s p i d i h h o o el re ln op i e d m dre s a s fa g gs t a p s c t dt t ee s n of h e m ? a c r es i Yes, the goods can be dispatched directly from the manufacturer to the buyer. This dispatch is permitted only if the whole consignment is dispatched from the manufacturer to the ultimate buyer. In such a case, dealer will not issue CENVAT Invoice to the buyer. Now buyer can take CENVAT credit on the basis of the manufacturer Invoice, if his name is mentioned in the manufacturer invoice as Consignee.
Invoice procedure for dealers: a) For CENVAT goods:

In a normal commercial invoice raised by wholesaler, distributor, and dealer; excise duty will not be charged separately. In fact the dealer can not charge excise duty in his invoice separately as he has not paid the same. Rule 11(7) of Central Excise Rules states that provision of Rule 11 (which is applicable to the manufacturers) as well as goods supplied by the first stage dealer or second stage dealer. In addition ,as per Rule 9(4) of CENVAT credit rules ,Amount of duty actually paid on goods should be indicated in the invoice of dealer on pro rata basis (It should not be charged but merely indicated). A dealer is required to indicate in his invoice, the excise duty paid on goods by the buyer. However, this should not be separately charged to the buyer, Details of excise duty paid by the manufacturer should only be shown separately in the invoice. The amount of excise should not be recovered from buyer separately showing it as Excise Duty.
b) For non CENVAT goods

A dealer is permitted to have another series of invoice for non-excisable goods or goods chargeable to zero rate of duty. RG23D register need not to be maintained in respect of such goods (Mumbai II Commissioner ate Trade Notice No.78/94 dated 02/12/94). It has been clarified that invoice in respect of excisable goods need not to be in prescribed format if the buyer does not want to avail CENVAT credit. The dealer /depot /importer can issue invoice from separate series in such cases. CENVAT will not be available on such private invoices. It is a general permission and no specific permission from department authorities is necessary .However, serial numbers should be separated and these serial numbers should also be informed to Department (Delhi Commissioner ate Trade Notice No.80/94 dated 28/12/94).
Manufacturer is doing manufacturing activity as well as trading activity

If the Manufacturer is doing the manufacturing activity as well as trading of excisable goods then Manufacturer has to follow these steps: 1. Apply the excise registration with Central Excise Authority for manufacturing as well as trading. For example- Where the registrant has one factory and is also a
registered dealer, who has PAN Number as ABCDE1234H,then the new registration number will be ABCDE1234HXM001 for the manufacturing and ABCDE1234HXD001 for the Trading. 2. Maintain the record for CENVAT claim separately for manufacturing and trading. For Manufacturing: RG23A Part I, RG23A Part II, RG23C Part I, RG23C Part II and for Dealer/Importer: RG23D. 3. For every purchase, sales, and return; transaction should be recorded separately for Manufacturing and Trading. 4. Return should be submitted with the Excise Authority monthly for manufacturing activity in ER 1 and quarterly for trading activity in prescribed format.
Purchase of raw material is made for Trading and later used for manufacturing purposes (in case of Manufacturer is doing manufacturing as well as Trading).
The user has to issue the trading CENVAT invoice but the name should be the mfe mo m a rt e V r nb ac e tac c k C A d t s n u n. h n ua e E T i es u r aN e u rn t N c o a ar t s w fe a t h e hi t of Trading CENVAT issued by him.
Purchase of raw material is made for manufacturing and later; is used for trading purposes (in case of Manufacturer is doing manufacturing as well as trading).
Manufacturer has purchased the raw material for manufacturing purpose but no manufacturing activity has been done with the raw material and later it has been sold for trading activity. In this case the user has to issue the manufacture CENVAT invoice and the CENVAT amount should be the same as at the time of purchasing the raw material. Such type of scenario has already been handled in the Navision as Goods Removed as Such. Note:
In the scenario where billing quantity is less than received quantity due to transit loss which is unavoidable:
When the billing quantity is more than the receipt quantity and shortage quantity is due to transit loss which is unavoidable then the dealer has to distribute the duty on the basis of quantity receipt. This is applicable only in the case of Petroleum and Chemical Industries.
ER- 5
What is ER5?
Every manufacturer of final product will annually furnish ER5 form to the Superintendent of Central Excise regarding the description of principal input and quantity of such
principal inputs required to be used in the manufacture of unit quantity of such final product.
What is principal Input?

The principal input has been defined as any input which is used in manufacturing final products, where the cost of such input constitutes not less than 10% of the total cost of the raw materials used in the final product.
Cases where the manufacturer does not need to submit ER5 with Central Excise Authority
1)Manufacturer engaged in manufacturing goods other than those goods, which are falling under chapters -22,28,29,30,32,33,34,38,39,40,48,72,73,76,84,85,87 and heading no.54.02,55.01,55.02,55.03, and 55.04 2) Manufacturer who have paid duty less than Rs 100 lakhs from current account (Personal ledger Account-PLA) during previous year have been exempted from filing of annual declaration ER5 and monthly return of ER6
When will ER5 form be submitted with Central Excise Authority?

Description ER 5 If any amendment made in ER 5( After 30th April and before new financial year begins) Due date for filing the ER5 Form Before 30th April of each financial year Amendment ER 5 form should be filed Before the proposed changes or within 15 days Such changes made in the form
Amendment in ER5
If a manufacturer of final products intends to make any alteration in the information furnished earlier, he can furnish information to the Superintendent of Central Excise together with the reasons for such alteration before the proposed changes or within 15 days of such change in the ER5 Form.
Final product having multiple BOM:

If a final product has multiple BOM then the details of principal input of each BOM will be given in ER5.
ER- 6
What is ER6?
Every manufacturer of final product will monthly furnish ER 6 Form to the Superintend of Central Excise regarding the receipt and consumption of each principal input with reference to quantity of final products manufactured by him.
What is principal Input?

The principal input has been defined as any input used in manufacturing final products where the cost of such input constitutes not less than 10% of the total cost of the raw materials used in the final product.
Cases where the manufacturer does not need to submit monthly ER6 return with Central Excise Authority:
1. Manufacturers engaged in manufacturing goods other than those goods, which are falling under chapters -22,28,29,30,32,33,34,38,39,40,48,72,73,76,84,85,87 and heading number 54.02,55.01,55.02,55.03, and 55.04 2. Manufacturers who have paid duty less than Rs. 100 Lakhs from current account (Personal ledger Account-PLA) during previous year, have been exempted from filing of annual declaration ER5 and monthly return of ER6.
When will the monthly ER6 return be submitted with Central Excise Authority?
Description Due date for filing the ER 6 form ER 6 Within 10 days from the close of each month
If any amendment has made in ER5 regarding principal input then all revised principal input information is to be submitted in ER6.
RG 23 D Setups for RG 23 D
Company Information
NAVIGATION: ADMINISTRATION APPLICATION SETUP GENERAL COMPANY INFORMATION.
Field
Trading Co
Comment
If the user is doing only trading activity, then the user has to place a check mark in the Trading Co field. A check mark in this field shows that Trading Item field in Purchase Order, Purchase Invoice, Sales Order, and Sales Invoice form will automatically get the checked status. The user can also uncheck the Trading Item field, but the transaction will not be affected in RG 23D. This action will help the trader when he is also trading with non excisable goods.
Location
NAVIGATION: W o S a au e Lo rs t on ee u c h p t i
Field
Trading Location
Comment
A check mark in this field shows that all transaction related to the location will be displayed in RG 23D register.
Excise Posting Setup

NAVIGATION: Financial Ma mt P g px P g n e S s tE s ane g t u o Se e p t u c o Setup i n i s t e i n
The user can define the G/L account in the posting set up for CENVAT trading account and CENVAT transferred trading account.
Field
CENVAT Cr. Receivable (Trading)
Comment
Choose the G/L account from the look up list. Choose the G/L account from the look up list.
CENVAT Transferred (Trading)
Sales & Receivable Setup

NAVIGATION: S &k t S & Receivable Set up a M t S l l a ge e r s e i n u a p es
Field
Posted Invoice No.(Trading)
Comment
Choose the number series from the look up list for sale invoice (trading).
Posted Ret Rcts No.(Trading)
Choose the number series from the look up list for sales return (trading).
Purchase & Payable Setup

NAVIGATION: Pa S c &a e us e Pa P l u r t us a S c h e u r p h ey t b p e
Field
Posted Invoice No.(Trading)
Comment
Choose the number series from the look up list for purchase invoice (trading). Choose the No. series from the look up list for purchase return (trading).
Posted Ret Rcts No.(Trading)
No. Series
If the user is doing manufacture and trading activity simultaneously then the user has to maintain different series of sales invoice and purchase invoice for manufacturing and trading.
NAVIGATION: Financial Ma mt N n e S . ane gt u o e p Series.

The user can define the number series in the window below, for trading and manufacturing invoices separately.
General Posting Setup

NAVIGATION: Financial Ma mt P g p n P g p n e S s e ga o s ane g t u o s e e p t t el s e i u n r tt i u n
Field
Sales Account (Trading)
Comment
Choose the G/L account from the look up list for the trading sales. Choose the G/L account from the look up list for the trading sales return. Choose the G/L account from the look up list for the trading purchases. Choose the G/L account from the look up list for the trading purchase return.
Sales Cr. Memo Acc. (Trading)
Purch. Account (Trading)
Purch. Cr Memo Acc.(Trading)
Purchase Order
NAVIGATION: Pa O Ps Os us r r i r/ Invoices r ec g d c h e do n e re r s
To create a purchase order, fill the fields as follows:

Vendor: Location: 10000 Blue (Place a check mark in Trading Location Field in Location Card). Excise 1000 10 1000 10000 (The system will calculate it.)
Structure: Item: Quantity: Direct Unit Cost : Line Amount:
Calculate Structure Values. The system will calculate excise according to the defined setups. On the Invoicing tab, Trading Item field will be by default checked if the Trading Co. field in Company Information window is checked. Post the order with Receive and Invoice.

NAVIGATION: Pa O Ps Hy s v us r r i i Pd i r e c g s o Ie c h e do n t re o s r to e c ns
The system will create the following entry: Purchase account (Trading) CENVAT Cr. Receivable (Trading) Vendor A/C Dr. Dr. Cr. 10000 1600 11600.
Excise has been calculated by taking the following values: Base amount: BED %: Excise Amount: 10000. 16 1600 (10000*16% = 1600).
The system will create RG 23 D entry: The user can view it by pressing Crlt+F8 (Zoom) keys.
In the above window Excise Amount per Unit field has value as: 160. Note 1: If the Location Code field is blank, then the program will take the ECC number mentioned in the Company Information window, provided that the Trading Location field should be checked in the Location Card. Note 2: If the Trading Item field in the Purchase Order form is checked and Trading Location field is unchecked in the Location Card, then the program will give an error message.
Note 3: The user can calculate the excise amount through Structure and further if the excise amount is not matched with the vendor invoice then the user can enter the excise amount manually.
Purchase Invoice
To create a purchase invoice, fill the fields as follows:

Vendor: Location: 10000 Blue (Place a check mark in Trading Location Field in Location Card). Excise 1000 15 1000 15000 (The system will calculate it.)
Structure: Item: Quantity: Direct Unit Cost : Line Amount:
Calculate Structure Values. The system will calculate excise according to the defined setups. On the Invoicing tab, Trading Item field will be by default checked if the Trading Co. field in Company Information is checked.
Post the Invoice.

NAVIGATION: Pa O Ps Hy s v . us r r i i Pd i r e c g s o Ie c h e do n t re o s r to e c ns
The system will create the following entry: Purchase account (Trading) CENVAT Cr. Receivable (Trading) Vendor A/C Dr. Dr. Cr. 15000 2400 17400
Excise has been calculated by taking the following values: Base amount: BED %: Excise Amount: 15000 16 2400 (15000*16% =2400)
The system will create RG 23 D Entry. The user can view it by pressing Crlt+F8 (Zoom) keys.
In the above window Excise Amount per Unit field has value as: 160. Note 1: If the Location Code field is blank, then the program will take the ECC number mentioned in the Company Information window, provided that the Trading Location field should be checked in the Location Card. Note 2: If the Trading Item field in the Purchase Order form is checked and Trading Location field is unchecked in Location Card, then the program will give an error message.
Note 3: The user can calculate the excise amount through Structure and further if the excise amount is not matched with the vendor invoice then the user can enter the excise amount manually.
Sales Order
NAVIGATION: Sales & Marketing e c grIe O Ps Osi r r i dn s d o n ev re r c s / o
To create a sales order, fill the fields as follows:

Customer: Location: Structure: Item: Quantity: Unit Price: Line Amount: 10000 Blue Excise 1000 15 4000 60000 (The system will calculate it.)
Calculate Structure Values. The system will calculate excise according to the defined setups. On Invoicing tab, Trading Item field will be by default checked if the Trading Co. field in Company Information window is checked. Post the Order with Ship and Invoice.

NAVIGATION: Sales & Marketing e c gis v O Ps Hy o Ie r r i s Pd i do n t re o s r to e c ns
The system will create the following Entry: Customer A/C CENVAT Transferred (Trading) A/C Sales A/C Dr. Cr Cr. 62400 2400 60000
Excise has been calculated with following values: Base Amount: BED %: Excise Amount: 60000 16 2400
Steps for the calculation of excise amount on FIFO basis: Step 1: First purchase has been made for 10 quantities and the excise amount is Rs. 1600. Second purchase has been made for 10 quantities and the excise amount is Rs. 1600. Step 2: While creating Sales Order, quantity is 15. Step 3: The system will calculate the excise amount on FIFO basis. Step 4: From first purchase order 1600 excise amount for 10 quantities have been taken and from second purchase order 800 excise amounts for 5 quantities have been taken. Step 5: These values will come after calculating structure values. The system will create RG 23 D entries: The user can view it by pressing Crlt+F8 (Zoom) keys.
The system will create two RG 23 D entries with negative values. First entry will be created against first purchase order, where quantity is 10 and excise amount is 1600. Second entry will be created against second purchase order, where quantity is 5 and excise amount is 800. Note 1: If the Location Code field is blank, then the program will take the ECC no. mentioned in the Company Information window, provided that the Trading Location field will be true in Location card. Note 2: If the Trading Item field in the sales order is checked and Trading Location field is unchecked in Location card then the program will give an error message. Note 3: The excise amount will be calculated through Structures. The program will calculate the excise amount on pro-rata basis where the Trading Item field has a checked mark in Sales Order form and that will be displayed in RG 23 D. Note 4: The excise amount will be calculated on FIFO (First in First Out) basis of the Item purchased through Purchase Order/Invoice. Note 5: In the invoice the details of purchase as for example: Central Excise Purchase Amount, Tariff Heading, Rate of Duty, Amount of Duty per Unit, Name and Address of manufacturer, Quantity, and Assessable value will be printed.
Sales Invoice
To create a sales invoice, fill the fields as follows:

Vendor: Location: Structure: Item: Quantity: Direct Unit Cost : Line Amount: 10000 Blue Excise 1000 15 4000 60000 (The system will calculate
Calculate Structure Values. The system will calculate excise according to the defined setups. On Invoicing tab, Trading Item field will be by default checked if the Trading Co. field in Company Information is checked. Post the Invoice.

NAVIGATION: S &k e c gi Pd i a M t O Ps Hy s v l a gr r i s o Ie e r s e i do n t n re o s r to e c ns
The system will create the following entry: Customer A/C CENVAT Transferred (Trading) A/C Sales A/C Dr. Cr Cr. 62400 2400 60000.
The excise has been calculated with following values: Base Amount: BED %: Excise Amount: 60000 16 2400
Steps for the calculation of excise amount on FIFO basis: Step 1: First purchase has been made for 10 quantities and the excise amount is Rs. 1600. Second purchase has been made for 10 quantities and the excise amount is Rs. 1600. Third purchase has been made for 10 quantities and the excise amount is Rs. 1600. Step 2: While creating Sales Order, quantity is 15. Step 3: The system will calculate the excise amount on FIFO basis. Step 4: In case, 10 quantities have already been sold from the first purchase and 5 quantities from the second purchase, balance 5 quantities will remain in the second purchase and 10 quantities in the third purchase. Step 5: From second purchase order 800 excise amount has been taken for 5 quantities and from the third purchase order 1600 excise amount has been taken for 10 quantities. Step 6: These values will come after calculating structure values.
The system will create RG 23 D Entries: The user can view it by pressing Crlt+F8 (Zoom) keys.
The system will create two RG 23 D entries with negative values. First entry will be created against second purchase order, where quantity is 5 and excise amount is 800. Second entry will be created against third purchase order, where quantity is 10 and excise amount is 1600. Note 1: If the Location Code field is blank, then the program will take the ECC number mentioned in the Company Information window, provided that the Trading Location field will be checked in Location card. Note 2: If the Trading Item field in the Sales Order is checked and Trading Location field is unchecked in Location card then the program will give an error message. Note 3: The excise amount will be calculated through Structures. The program will calculate the excise amount on pro-rata basis when the Trading Item field has a check mark in Sales Order form and that will be displayed in RG 23 D. Note 4: The excise amount will be calculated on FIFO (First in First Out) basis of the item purchased through Purchase Order/Invoice. Note 5: In the invoice the details of purchase like: Central Excise Purchase Amount, Tariff Heading, Rate of Duty, Amount of Duty per Unit, Name and Address of manufacturer, Quantity, Assessable value will be printed. The user can view the sales invoice in the Posted Sales Invoice.
Click the Print Trading Invoice menu item in Print menu button.
Enter the No. and click Preview.
Purchase Return
NAVIGATION: Pa O Ps R Orders us r r i e r ec g t c h e do n u re r s n
To create a return order, fill the fields as follows:

Vendor: Location: Structure: Applies-to Doc. Type: Applies-to Doc No: Item: Quantity: Direct Unit Price: Line Amount: Calculate Structure Values. The system will calculate excise according to the defined setups. On Invoicing tab, Trading Item field will be by default checked if the Trading Co. field in Company Information window is checked. Post the Return Order. 10000 Blue Excise Invoice PT1000073 1000 10 1000 10000 (The system will calculate it.)

NAVIGATION: Purchase e c gis O Ps Hy o Credit Memos r r i s Pd do n t re o s r t e
The system will create the following entry: Vendor A/C Dr. To CENVAT Cr. Receivable (Trading) A/C Cr To Purchase A/C Cr. Excise has been calculated with following values: Base Amount: BED %: Excise Amount: 10000 16 1600 11600 1600 10000
The system will create RG 23 D Entries: The user can view it by pressing Crlt+F8 (Zoom) keys.
In the above window Excise Amount per Unit field has the value as: 160. Note 1: In case of Purchase Return Order all value in RG 23 D Table will come in negative. Note 2: It is mandatory to mention Applies-to Doc. No while creating Purchase Return Order. Note 3: If the purchase is made and the user has sold the quantity also, after that the user is doing purchase return with application, then the system will not allowed this process. There should be some minimum quantity to return in RG 23 D.
Sales Return Order

NAVIGATION: Sales & Marketing e c geOs O Ps R r rr i t d do n u e re r r s n

Customer: Location: Structure: Applies-to Doc. Type: Applies-to Doc No: Item: Quantity: Direct Unit Price: Line Amount: Calculate Structure Values. The system will calculate Excise according to the defined setups. On Invoicing tab, Trading Item field will be by default checked if the Trading Co. field in Company Information window is checked. Post the Return Order. 10000 Blue Excise Invoice ST100046 1000 10 4000 40000 (The system will calculate it.)

NAVIGATION:
Sales & Marketing e c gi Pd i o O Ps Hy s r e rr i s oC M s do n t re o s r te m ed t
The system will create the following entry: Sales A/C CENVAT Transfer. (Trading) A/C Customer A/C Dr. Dr Cr. 40000 1600 41600
Excise has been calculated with following values: Base Amount: BED %: Excise Amount: 40000 16 1600
The original sales invoice is posted with excise amount 1600. The sales invoice has been applied and the system has taken the same excise amount in Return Order. The system will create RG 23 D entries. The user can view it by pressing Crlt+F8 (Zoom) keys.
In the above window Excise Amount per Unit field has the value as: 160. Note 1: Inc case of Sales Return Order all value in RG 23 D table will come in positive. Note 2: It is mandatory to mention Applies-to Doc. No while creating Sales Return Order.
Goods Sent Directly to the Buyer Place by the Manufacturer.
Procedure to be followed by the manufacturer, dealers, and buyer:
Steps to be Followed by the Manufacturer:
Step 1: Create sales invoice and select The Cannon Group PLC as sell-to customer on General tab. Step 2: Choose The Pope Group as consignee in Ship-to Name field on Shipping tab. In Ship-to Address card place a check mark in Consignee field if you want The Pope Group printed as a consignee in the invoice. to be Step 3: Calculate the excise amount through Structures and post the invoice. Step 4: On the basis of manufacturer invoice, buyer can take the CENVAT credit as his n P as a a eo sh s m ls t o consignee in the invoice. eh t e w D i Mr n This case can also be handled though Sales Order. The user can view the Sales Invoice through Posted Invoice.
The system will display the consignee name and address in the Sales Invoice.
Steps to be followed by Buyer:
Field
Manufacturer E.C.C No
Comment
This field contains the E.C.C number of the manufacturer.
Manufacturer Name
This field contains the name of the manufacturer. This field contains the address of the manufacturer.
Manufacturer Address
The manufacturer ECC number will be displayed in RG 23 A part II. Following steps should be followed further by the buyer: Step 1: Create Purchase Order/Invoice in the name of vendor (who is a dealer). Step 2: Mention the manufacturer details on Shipping tab that will be displayed in RG 23 A.
Step 3: Calculate excise amount through structures and if the excise amount is not m it mfevt u at e an ag tac i n ret cmt t w e u r o ey n r x o c i h h n u ie b c e n h ar c t n h e n es u s hi e manually in the excise amount field. Step 4: Post the Purchase Order/Invoice. Note 1: If the Buyer is a second stage dealer then he has to place a check mark in Trading Items field in Purchase Order/Invoice and the posted entries will be displayed in RG 23 D.
Steps to be followed by dealer:

Step 1: Create a Purchase Order/Invoice in the name of vendor. Step 2: In the Purchase Order/Invoice form, Trading Item field should be unchecked. This is done so that transactions will not be displayed in RG 23 D as CENVAT invoice is already raised by the manufacturer to the buyer and on that invoice, buyer has taken the CENVAT credit. Step 3: Excise amount will not be calculated either through Structures or manually. Step 4: Post the Invoice/Order. Step 5: Dealer has to create a Sales Order/Invoice in the name of customer. Step 6: Dealer should create Non-CENVAT invoice to the customer where no excise amount will be in the invoice. Step 7: Post the Invoice/Order.
Scenario where the manufacturer is also doing the trading activity:

Steps to be followed:
Step 1: Apply for the registration of Manufacturing as well as Trading. Step 2: Create two Location card; one for Manufacturing and second for Trading. Step 3: Define the G/L account in the Excise Posting Group for: CENVAT Cr .Receivable (Trading Account) CENVAT Transferred (Trading Account) Step 4: Define the G/L account for purchase trading and sales trading. Step 5: Define the No. series separately for trading and manufacturing of sales, purchase, and return order.
Step 6: In Trading Location card, place a check mark in Trading Location filed. Step 7: Trading Co. filed should be unchecked in Company Information window. Step 8: At the time of creation of Purchase Order/Invoice, if the item is used for manufacturing purposes then Trading Items field should be unchecked and all posted entries will be displayed in RG 23 A part I & II. Step 9: If the items are purchased for trading then place a check mark in Trading Item field in Order/Invoice. This will display the posted entries in RG 23 D. Step 10: If the trading items have been sold then place a check mark in Trading Item field in Sales Order/Invoice. The posted entries will be displayed in RG 23 D. Step 11: Create the separate Purchase Order /Invoice and Sales invoice /Order for trading and manufacturing items
Goods Purchased for Trading and Further Transferred for Manufacturing

Create a purchase order/invoice with Trading Item filed true with the following values: Quantity: Unit Cost: Line Amount: Excise Amount: Post the Order/Invoice. The system will create the following entry: Purchase A/C Dr. CENVAT Cr. Rec. (Trading) Dr. Vendor A/C Cr. 10000 1600 11600. 10 1000 10000 1600 (16% of 10000)
The posted entry will store in RG 23 D.
Transfer of Goods to Manufacturing Unit from Trading Unit

NAVIGATION: Warehouse Planning &c Rsu E t I e .n xo t c Ja e ne l ol u i m a r s
Fill the fields as follows:

Item No.: Location: New Location: Quantity: Applies-to Entry (RG 23 D): 1000 Blue (Enter the trading location from where goods has to be transferred) Green (Enter the Manufacturing Location to which goods has to be transferred) 10 8
From lookup list of Apples-to Entry (RG 23 D) choose the entry number which you want to transfer.
After selecting, click Ok. The selected entry number will be displayed in Applies-to Entry (RG 23 D) field in Item Reclass. Journal.
Post the Item Reclass. Journal.
Viewing Ledger Entries

Now the user can view the posted entries from Posted Purchase Invoice.
The system will create the following entry. Purchase A/C Purchase (Trading) A/C Cenvat Cr. Receivable A/C Cenvat Cr. Receivable (Trading) Dr. Cr. Dr. Cr. 10000 10000 1600 1600
The purchase and the excise amount will be transferred to Manufacturing G/L accounts from Trading G/L accounts. The system will create RG 23 D Entry.
The system will reverse the original entry in RG 23 D table with negative values as the item has been transferred to manufacturing unit.
Capital Goods Purchased for Trading and further Transferred for Manufacturing
Create a purchase order/invoice with Trading Item filed checked, with the following values: Quantity: Unit Cost: Line Amount: Excise Amount: Post the Order/Invoice. The system will create the following entry: Purchase A/C Dr. CENVAT Cr. Rec. (Trading) Dr. Vendor A/C Cr. 10000 1600 11600 10 1000 10000 1600 (16% of 10000)
The posted entry will store in RG 23 D.
Transfer of Capital Goods to Manufacturing Unit from Trading Unit

NAVIGATION: W o PiE t I e .n au lg e ne c Ja rs a &c Rsu ee n h n xo t l ol n u i m a r s

Item No.: Location: New Location: Quantity: Applies-to Entry (RG 23 D): DJ1 Blue (Enter the trading location from where goods has to be transferred) Green (Enter the manufacturing location to which goods has to be transferred) 10 7
From lookup list of Apples-to Entry (RG 23 D), choose the entry number which you want to transfer.
Click OK. The chosen entry number will be displayed in Applies-to Entry (RG 23 D) field in Item Reclass. Journal.
Post the Item Reclass. Journal.
Viewing Ledger Entries

Now the user can view the posted entries from Posted Purchase Invoice
The system will create the following entry. Purchase A/C Purchase (Trading) A/C Cenvat Cr. Receivable A/C Cenvat Cr. Deffered Account Cenvat Cr. Receivable (Trading) Dr. Cr. Dr. Dr. Cr. 10000 10000 800 800 1600.
The system will divide the excise amount as Capital item field is checked in the Item Card. The purchase and the excise amount will be transferred to Manufacturing G/L accounts from Trading G/L accounts. The system will create RG 23 D Entry.
The system will reverse the original entry in RG 23 D table with negative values as the item has been transferred to manufacturing unit.
Reports
RG 23 D
NAVIGATION: Financial Management nL re i pg G G a g R t xR t R el e p E en ee o rd r c o s s r e i 23D
Field
E.C.C. No.
Comment
Choose the ECC No for which user wants to generate RG 23 D, form the lookup list. Mention the starting date of RG 23 D to be generated Mention the ending date of RG 23 D to be generated. Choose the Item from lookup list if user wants to generate RG 23 D for the particular item.
Starting Date
Ending Date
Item No.
Quarterly Return for Traders

NAVIGATION: Fia ae G a g R t xR t n l gn el e e i pg a M et nL r p E en n a m ee o c n i rd r c o s s r e i Quarterly Return for Traders
Field
Return for the Location
Comment
Choose the ECC number from the lookup list for which user wants to generate quarterly return. Mention the starting date of quarterly return to be generated Mention the ending date of quarterly return to be generated.
Starting Date
Ending Date
ER- 5 and ER- 6

Item Card
NAVIGATION: Purcha Pi I s l ge ea s n n t n m Create items considering as raw materials.
Create a new item with cost price RW1 500 . Unit Cost: This field is the standard field of Navision. The user can enter the total of raw miot i f h be useful to identify the principal input of a al t u s . will t c ht i i e s e ce s r a i ntT n s ol d final product.
Create another item with cost price RW2 300 . Unit Cost: This field is the standard field of Navision. The user can enter the total of raw miot i f his will be useful to identify the principal input of a al t u s . t c ht i e s e ce r a i ntT n s ol d final product.
Create item considering as finished goods.
Create another item FG .
Production BOM
NAVIGATION: Mfi Pc i Pc O Pc O ac d e dn dn . nu u r rtg rt M rt M a g o Dn oo t n us uB i oo uB i
The user has to create a production BOM for each final product. If the final product has alternative BOMs then the user has to create separate BOM for each final product. The user can link the BOM to the location so that principal input of each BOM that is related to the location can be identified and ER 5 can be generated according to ECC number.
Create a production BOM with the following Information: No.: Description: Units of Measure Code: FG (Finish Goods Item) Finished Goods PCS.
On the line level

First Line: Type: No: Quantity: Unit of Measures: Second Line Item RW1 (Raw Material 1) 50 PCS
Type: No: Quantity: Unit of Measures: Status:
Item RW2 (Raw Material 2) 50 PCS Certified
We have created a production BOM assuming that RW1 and RW 2 are raw materials and are used for FG (Finished Goods). Attach the Production BOM with FG Item.
Also link the production BOM with ECC number. Clicking Location menu item, BOM wise Location window opens where Production BOM No. field and Description field get the default values. The user can choose the location code from the look up list. E.C.C. No. field get the default values as the user choose the location code. In this way the user can link the production BOM to different locations.
Field
Location Code
Comment
The user can choose the location from the look up list. This field automatically gets the value after choosing location code. This field automatically gets the value after choosing location code.
Location Name
ECC No
Identify Principal Input

NAVIGATION: Mfi P iv I ycn ac rAy ePp u nu u r e c n r l ag i t d t n o i d i c t ti I in p f i t a
After creating BOM, the user has to run the batch job to identify the principal input. For identifying the principal input, the user has to run the batch job and select the filter option. Fill in the fields according to these guidelines:
Field
Production BOM No
Comment
Choose the BOM No. from the lookup list. If the user will not select any particular BOM then the program will run the batch job for all BOMs.
P.I. Identification Date Click OK.
Enter the date of identifying principal input
After running the batch job the program will identify the principal inputs and automatically places a check mark in Principal Input field in Production BOM window.
Principal input identified by the system: Item RW1 RW2 Quantity 50 50 Cost 500 300 Total Value 25000 15000 40000.
Total cost of raw material
Calculation:
10% of total cost of raw material is identified as principal input. 10% of 40000 (40000*10%) = 4000. The total costs of both items are more than 4000. So both items are principal inputs. Note 1: The program will not identify the principal input for those production BOM for which Status field is either Under Development or New. Note 2: If the Production BOM is not attached with the finished goods item card then system will not identify the principal input.
BOM History
NAVIGATION:
Mfi Pc i Pc O Fi B ac d e dn c M nu u r rtg rt M un O a g o Dn oo t n us uB i ns t o History
The user can view the BOM history after running the batch of identifying principal inputs.
Filter Option:
BOM No.: Select the BOM for which the user wants to view the history. If the user left this field blank then program will show the history of all BOMs.
Generation of ER- 5 (Declaration)

NAVIGATION: Fca mnL re i pg ia ae G a g R t xR t n l gn el e p E en a M et ee o n n i rd r c o s s r e i ER-5.
Field
BOM No.
Comment
Choose the BOM number from the lookup list
Field
Return for the location
Comment
Choose the ECC number from the look up list. Enter the starting date from which ER-5 has to be generated. Enter the ending date to which ER-5 has to be generated. A check mark in this field shows that the user is generating ER-5 as declaration.
Start Date
End Date
Declaration
Amendment: Place a check mark if the user is generating amended ER-5. In amended ER-5, only amended principal inputs will be displayed with reasons.
Filling of ER-5 (Declaration)

NAVIGATION: Fca mnL rec i E ia ae G a g P iv i F n l gn el e r Ai x a M et ee i c s c i n n i rd o t di t e s l e e ER-5
Field
Comment
Choose the ECC number for which return has been submitted. Select the financial year for which return has been submitted. Enter the filing date on which return has been submitted. Enter the amendment filing date on which amended return has been submitted.
Financial Year
Filing Date
Amendment Filing Date
BOM History for Filling Status (Declaration)

NAVIGATION: Mfi Pc i Pc O Fi B ac d e dn c M nu u r rtg rt M un O a g o Dn oo t n us uB i ns t o History.
In the BOM History filed, status and filling date has been updated.
Amendments in Production BOM

Amendment in ER-5:
Before amending the production BOM, the user has to make the Status field in Pc Oi fCe r ln nu a rt Md oe n e m th rt oo ww i U Do t t e o dn u B n r r td v e e s s i om t o e e e h i f d p h change the production BOM as per the requirement. The user can delete the items, add the items, and change the quantity proportionate in BOM. After modification the user has to make the st stidn ww a i Pc Oi. t Ce rt Md u e oo s r nuB n a i f d i o After doing amendments in BOM, the user has to run the batch job of identify principal inputs. Now the programs will automatically places a check mark in Principal Input field in Production BOM as per the amendment made and that can also be viewed in the history of BOM.
Entering the reason code in amendment return: NAVIGATION: Mfi Pc i Pc O Cos ac d e dn me nu u r rtg rt M on a g o Dn oo t n us uB i pt n Comments
If the user is making any amendment in the production BOM then the user has to give the reason for making such changes.
Create a new item with cost price 1000. RW3 Create a new line in Production BOM No. FG . Type: No: Quantity: Unit of Measures: Item RW3 10 PCS
Select the line from the production BOM, click Comments menu item in the Component menu. The user can enter the reason for the selected line in production BOM that will be displayed in the amendment ER 5 declaration.
Enter the comment for newly added raw material (reason to be mentioned).
Close the Comment form. M t te oo M a e s t idn . k s i pc O e t Ce rt h u r nu B a i f d i Again run the batch to identify the principal Input.
After running the batch job, the system will identify RW3 as principal input.
Principal Input Identified by the System:

Item Quantity RW1 50 RW2 50 RW3 10 Total cost of raw material Calculation: 10% of total cost of raw material is identified as principal input. 10% of 50000 (50000*10%) = 5000. As the total costs of all three items are more than 5000, so all are principal inputs. The consumption is also changed due to addition of new item in the BOM. Note 1: The program will not identify the principal input for those production BOM for which Status field is either Under Development or New. Note 2: In case the user wants to delete any item from the production BOM, first the user has to enter comment for the item to be deleted then the user can delete the item. Note 3: Comment menu button is a standard button in Navision. Cost 500 300 1000 Total Value 25000 15000 10000 50000.
BOM History for Amended BOM

NAVIGATION: Mfi Pc i Pc O Fi B ac d e dn c M nu u r rtg rt M un O a g o Dn oo t n us uB i ns t o History.
Now the amended entries will be displayed in the BOM history with reasons.
Generation of ER- 5 (Amended) NAVIGATION: Fca mnL re i pg ia ae G a g R t xR t n l gn el e p E en a M et ee o n n i rd r c o s s r e i ER-5
Fill in the field according to these guidelines:
Field
BOM No.
Comment
Choose the BOM number from the lookup list.
Field
Comment
Choose the ECC number from the look up list. Select the GL account of the out tax with respect to the state. Select the GL account of the input VAT credit with respect to the state. Select the GL account of the VAT deferred account with respect to the state. Place a check mark if user is generating amended ER-5. In amended ER-5, only amended principal inputs will be displayed with reasons.
Start Date
End Date
Declaration Amendment
Filling of ER-5 (Amendment)

NAVIGATION: Fca mnL rec i E ia ae G a g P iv i F n l gn el e r Ai x a M et ee i c s c i n n i rd o t di t e s l e e ER-5
Field
Comment
Choose the ECC number for which return has been submitted. Choose the ECC number for which return has been submitted. Enter the filing date on which return has been submitted. Select the GL account of the VAT deferred account with respect to the state. Enter the amendment filing date on which amended return has been submitted.
Financial Year
Filing Date
Declaration
Amendment Filing Date
BOM History for Filling Status (Amendment)

NAVIGATION: Manufac d e dn c M t Pc i Pc O Fi B u r rtg rt M un O i o Dn oo n g us uB i ns t o History.
All amended entries in BOM history gets updated with amendment status (Amendment field value as Yes) and amendment filling date.
Generating ER- 6 Return

NAVIGATION: Financial Mgn el e e i pg a mnL r p E R t n e G a g R t x en a t ee o e rd r c o s s r e i ER-6
Field
Return for the Month of
Comment
Choose the month from the drop down button for which return has to be generated. Choose the ECC number for which return has to be generated. Define the year for which return has to be generated.
Return for the Location
Year
Detail description of the section 4 and from where data should be captured: Description of principal input: Identify the principal input from the production BOM (input which is used in the manufacture of final products where the cost of such input constitutes not less than 10% of the total cost of raw-materials for the manufacture of unit quantity of a given final products) Qty Code: Quantity code of principal input will be captured from production BOM (quantity code may be K.G, PCS, and Liter) Opening Balance: Opening balance of principal input and the data will be captured from RG 23A part 1. Receipt: Receipt of principal input during the month and the data will be captured from RG 23 A part 1. Taken for use in the manufacture of dutiable and exempted F.G: Total quantity of principal input issued for production during the month and the data will be captured from RG 23A part 1. Removed as such or for export or for home consumption: Total quantity removed as such or for export or for home consumption during the month
Removed as such: If goods which are bought for manufacturing is removed from the warehouse without doing any process, then it is termed as Removed As Such. The removal could either be sale or transfer. Closing Balance: Closing balance of principal input and the data will be captured from RG 23 A part 1 Sl No: Serial no of finished goods description FG manufactured out of inputs (description): List of finished goods manufactured out of principal input will be shown in this column and the data will be captured from Production BOM. Qty code of F.G: Quantity code of finished goods (it may be K.G, PCS, Liter) will be captured from production BOM. Qty of F.G manufactured: Total quantity of finished goods manufactured from principal input will be shown in this column. System will capture the data from Output Journal. For example: from principal input A two finished goods X and Y have been manufactured in quantities of 2000 and 3000 respectively during the month (in which ER6 is to be submitted). In this column the quantity of 2000 and 3000 will be shown. Note: If quantity is removed as such the quantity will get affected in column 5 of section 3 in ER 1 and column 7 of section 4 in ER 6 form. If the duty on quantity removed as such is discharged through CENVAT credit then the amount utilized for removed as such will be shown in section 5 of ER 1 return. Section 5 of ER 6: Details of waste and scrap created during manufacture and cleared /destroyed: 1) S. No.: Serial no of waste and scrap will be shown in this column. 2) Description of waste and scrap: Description of all waste and scrap will be shown in this column. 3) Quantity Code: Quantity code of waste and scrap (available options are: K.G, PCS, and Liter) will be shown in this column. 4A) Quantity Cleared: Total cleared quantity of waste and scrap during the month will be shown in this column. This value will get through the sales invoice /Order. Select the Item with scrap field true in that item card. 4B) Quantity Destroyed: Total destroyed quantity of waste and scrap during the month will be shown in this column. Qty destroyed can be track through the item journal. In Item journal select et sg am aet with scrap field n p td enl e t e Ni j nd c Item r aee s t s h y y a u e v t t true in that item card. Select the location code and fill in the Quantity and post the item journal. N a P a P i I. at u s l gt vo r e a m in c n g :h i n n e s
Field description: Scrap item: A check mark in this field to identify the system that this item is a scrap.
Navigation: Manufacturing Execution Consumption Journals.
Enter the following Information: Date: Document No. : Item No.: Location: Quantity: Post the Consumption Journal. User has to enter the quantity in negative. System will load the quantity on inventory. Quantity Cleared: Total cleared quantity of waste and scrap during the month will be shown in this column. This value will get through the sales invoice /Order. Select the Item with scrap field true in that item card. Quantity Destroyed: Total destroyed quantity of waste and scrap during the month will be shown in this column. Qty destroyed can be track through the item journal. In Item j l t t sg am aet m s f o s e y td enl e wci u e n p Ni j nd c I i al r l t e ee s t s h ne r a a u e tt p a cy v t teh r d e true in that item card. Select the location code and fill in the Quantity and post the item journal. 17/10/06 123 Scrap1 Blue -10
The Scrap Item quantity will be displayed in Daily Stock Account. (DSA).
Appendix
Example 1:
Trader X has purchased 100 K.G (kilogram) of plastic dana (an item, taken as example) from trader Y. The details of price are as follows: Basic Price Excise Total Rs 10000 Rs 1600 Rs 11600
Now X sells the plastic dana to the persons whose names are given in the table below. Then the details of CENVAT calculation will be as follows: Excise duty per K.G of plastic dana = 1600/100 = Rs16/Name of customer A B C Quantity in K.G 50 30 20 Basic price(Rs) 7000 4000 3000 Excise (Rs) Total(Rs)
800(Rs16*50K.g) 7800 480(Rs16*30K.g) 4480 320(Rs16*20K.G) 3320
Example 2:
Dealer A is registered as first stage dealer and has purchased 100 K.G of plastic dana from dealer B. 50 K.G of plastic dana has been rejected by the dealer A then the following entries will be passed: Details of invoice at the time of receipt of material are as follows: Basic Price: Rs10000 Excise: Rs 1600 Total: Rs 11600 Accounting entries in the books of dealer will be: Purchase A/C Dr Rs10000 CENVAT receivable A/C Dr Rs1600 To Vendor B Cr Rs11600 Details of invoice at the time of rejecting 50 kg of the material: Excise duty per K.G at the time of receipt of material = 1600/100=Rs16 per K.G Basic Price: Excise duty: Total Rs 5000 Rs 800 Rs 5800
Accounting entries in the books of dealer at the time rejecting the material will be: Vendor B A/C To CENVAT payable To Purchase A/C Dr Cr Cr Rs5800 Rs 800 Rs5800
Example 3:
A is the manufacturer as well as the trader. Let us assume that 100 K.G of plastic dana has been purchased from B for trading. The detail price of plastic dana is as follows: Basic Price Excise Duty Total Rs 10000 Rs 1600 Rs 11600
Trader A has recorded the above transaction in RG 23D and after that if the user wants to use 50 K.G for the manufacturing purpose then user has to issue the CENVAT invoice of trading E.C .C No. The excise duty per K.G=1600/100=Rs 16 per K.G Accounting entries for the above transaction At the time of purchasing plastic dana for trading: Purchase (Trading ) A/C Dr CENVAT receivable (trading) A/C Dr Vendor B Ar / C C Rs10000 Rs1600(Effect in RG23D) Rs11600
Accounting entries when the trading goods are used for manufacturing: Purchase Manufacturing A/C Dr CENVAT receivable (Manufacturing) A/C Dr. Purchase Trading CENVAT receivable (Trading) A/C Cr A/C Cr Rs 10000 Rs 1600(Effect in RG23Apart I and II) Rs 10000 Rs 1600(Effect in RG23D)
ER and ER - 6 5
Example 1:
Description Qty R MAT A RMAT B R MAT C 5 1 2 Unit of measure Pcs Pc Pcs Basic 15000 1000 2000 Excise 2000 100 VAT 1200 50 200 CST Freight 500 50 Total 15500 1100 2000
Per unit of bicycle costs = 18600 Identify the principal input: % of raw material A cost involved in bicycle = 15500*100/18600 = 83.33% % of raw material B cost involved in bicycle = 1100*100/18600 = 5.91% % of raw material C cost involved in bicycle = 2000*100/18600 = 10.75% Out of this three raw materials (A, B, and C), A and C have been consumed more than 10% of the total cost of raw materials in manufacturing bicycle. So A and C are identified as principal inputs.
Example 2:
Suppose a manufacturer has filed the annual declaration regarding principal input of 15 final products. Now the manufacturer has changed the BOM of two final products and principal input has changed. In this case the manufacturer has to file the amendment ER5 regarding the principal input of two final products only.
Example 3:
In original ER5, the manufacturer has given the declaration of principal input as: Name of final product A B C D Name of principal input X, Y, and Z P, Q, and R Y, Z, and M J, K, and F
Nh n ua nt Mi o this case the o m a rc e Bo lu w ac h a h t u rs g e fpc In e fe h d O frt t nd . a A principal input becomes X, Y, and D. The manufacturer has to submit the amendment return of ER5 regarding the declaration of D as principal input. The manufacturer has to give reasons in the amendment return of ER5, why Z has not been identified as principal input? If the quantities of X and Y have changed after introducing D in the BOM of final pc th n ua u t eetf rth e u rs b e nn r R o e mfe t m adtn 5 d tac h st mmr o u, An aro i t h e E u regarding the changes in the principal inputs: X, Y, Z, and D with reasons.
BOM of the bicycle and identifying the principal input Example 4:

Description Qty Unit of BASIC Measure Pcs Pc Pcs 15000 1000 2000 EXCISE VAT CST Freight Total cost 15500 1100 2000 18600
R.MAT A 5 R MAT B 1 R MAT C 2 Per unit of
2000 100
1200 50 200
500 50
Description Qty
Unit of BASIC Measure
EXCISE VAT
CST
Freight
Total cost
bicycle costs Identifying the principal input % of raw material A cost involved in bicycle = 15500*100/18600 = 83.33% % of raw material B cost involved in bicycle = 1100*100/18600 = 5.91% % of raw material C cost involved in bicycle = 2000*100/18600 = 10.75%
Out of these three raw materials (A,B,C), raw materials A and C have consumed more than 10% of cost of raw materials in manufacturing bicycle. So the raw materials A and C have been identified as principal input.
Microsoft Business Solutions Navision 4.0- Depreciation on Block of Assets /Additional Depreciation / Number of Days
Table of Contents
Definitions ............................................................................................................. 3 Fixed Assets ...................................................................................................... 3 Depreciation ...................................................................................................... 3 Depreciation as per Companies Act...................................................................... 3 Depreciable Amount: ......................................................................................... 3 Classification of Assets ..................................................................................... 3 Revaluation of Assets ........................................................................................ 4 Method of Depreciation ..................................................................................... 4 Pro-rata Depreciation ........................................................................................ 4 Depreciation in case of Multi Shift Operations ................................................... 4 Depreciation on Assets value less than Rs 5000 .............................................. 5 Depreciation as per Income Tax Act ..................................................................... 5 Types of Assets on which Depreciation can be claimed .................................... 5 Tangible Assets ............................................................................................. 5 Intangible Assets ........................................................................................... 5 Conditions for Depreciation ............................................................................... 6 Allowed Methods of Depreciation ...................................................................... 6 Block of Assets .................................................................................................. 6 Special Conditions............................................................................................. 7 Additional Depreciation ..................................................................................... 7 Assets not Eligible for Additional Depreciation .................................................. 7 Additional Depreciation Rate ............................................................................. 8 Calculation of Depreciation as per Companies Act ............................................... 8 Depreciation Book Card .................................................................................... 8 Fixed Asset Card ............................................................................................. 11 Calculating Depreciation ................................................................................. 12 Viewing the Ledger Entries.............................................................................. 14 Minor Assets.................................................................................................... 15 Multiple Shifts .................................................................................................. 17 Fixed Asset Card ............................................................................................. 18 Calculating Depreciation ................................................................................. 24 Viewing the Ledger Entries.............................................................................. 25 FA Reports .......................................................................................................... 28 Calculation of Depreciation as per Income Tax Act ............................................ 29 Depreciation Book Card .................................................................................. 30 FA Classes ...................................................................................................... 31 Accounting Period Income Tax........................................................................ 33 Fixed Asset Card ............................................................................................. 34 Viewing the Ledger Entries.............................................................................. 42 Enter an Opening Balance .............................................................................. 45 FA Reports .......................................................................................................... 45 Appendix ............................................................................................................. 48 As per Companies Act ..................................................................................... 48 As per Income Tax Act .................................................................................... 52
Definitions
Fixed Assets
Fixed Assets are used for providing or producing goods or services. In normal course of business Fixed Assets are not used for resale.
Depreciation
Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, efflux ion of time or obsolescence through technology and market changes. It is allocated so as to charge a fair proportion in each accounting period during the useful life of the asset. It includes amortization of assets whose useful life is predetermined and depletion of wasting asset.
Depreciation as per Companies Act

Depreciable Amount:
Depreciable amount of a depreciable asset is its historical cost or any amount substituted for historical cost in the financial statements, less the estimated residual value. This amount will be written off over the useful life of the depreciable asset.
Classification of Assets
According to schedule VI of Companies Act, 1956, fixed assets should be presented in balance sheet classifying as far as possible as follows: 1. Goodwill 2. Land 3. Buildings 4. Leaseholds 5. Railway sidings 6. Plant and Machinery 7. Furniture and Fittings 8. Development of property 9. Patents, Trade marks and Trade designs 10. Livestock 11. Vehicles
Revaluation of Assets
When any historical cost of a depreciable asset undergoes change due to increase or decrease in long-term liability because of exchange fluctuations, price adjustments, changes in duties or similar factors, the depreciation on the revised unamortized depreciable amount should be provided prospectively over the residual useful life of the asset. In case the revaluation has material effect on amount of depreciation, the same should be disclosed separately in the year in which revaluation is carried out.
Method of Depreciation
It is permissible for a company to follow different depreciation methods for different types of assets. The same methods should be followed every year. A change in method can be made only if such change is required by statue or for compliance with accounting standard issued by the Institute of Chartered Accountants of India, or if the change would result in more appropriate preparation and presentation of financial statements of enterprise.
Pro-rata Depreciation
In any financial year, if any addition or deletion is made in the asset (means, asset has been sold, discarded, demolished or destroyed) then the depreciation on such asset shall be calculated on a pro rata basis from the date of such addition or up to the date of such deletion based on actual number of days. If the financial year is more or less than 12 months then rates of depreciation of schedule XIV should be taken proportionately.
Depreciation in case of Multi Shift Operations

Calculations of the extra depreciation for double shift and triple shift working shall be made separately in the proportion of the number of days for which the concern worked in double shift or triple shift, as the case may be, bears to the normal number of working days during the year. For this purpose, the normal number of working days during the year shall be deemed to be In case of a seasonal factory or concern, the number of days on which the factory or the concern actually worked during the year or 180 days, whichever is higher. In other case, the number of days on which the factory or the concern actually worked during the year or 240 days, whichever is higher. The extra shift depreciation shall not be charged in respect of any item of machinery or plant, which has been specifically exempted by inscription of the letters N.E.S.D (No Extra Shift Depreciation) against it in sub-items as specified in Appendix II and also in respect of the items of machinery and plant to which the general rate of depreciation of 13.91 per cent applies as given in Appendix II to this document .
Depreciation on Assets value less than Rs 5000

If the value of the individual item of asset whose actual cost is less than Rs 5000 and belongs to any category other than Plant and Machinery, then rate of depreciation is 100% in the year of acquisition. If the item belongs to category of Plant and Machinery and if the actual cost of each item is less than Rs 5000 and less than 10% of the value of total Plant and Machinery the asset can be written off to the extent of 100% in the year of acquisition. Else, depreciation rates as specified in schedule XIV of the Companies Act.
Depreciation as per Income Tax Act

Depreciation claim is not optional. From the assessment year 2002-03 depreciation is available for assessee whether the assessee has claimed, the deduction for depreciation in computing his or her total income, or not.
Types of Assets on which Depreciation can be claimed

Depreciation is allowed on tangible and intangible assets.
Tangible Assets
Types on tangible assets on which depreciation is allowed: 1. 2. 3. 4. Building Machinery Plant Furniture
Intangible Assets
Types of Intangible assets on which depreciation is allowed: 1. 2. 3. 4. 5. 6. Know-how Patents Copy Rights Trade marks Licenses Franchises or any other business or commercial rights of similar nature
Conditions for Depreciation

Followings are the conditions to claim Depreciation: 1. Person claiming depreciation must own the asset 2. Asset must be used either for the business purpose or for the profession purpose 3. Asset must be used during the relevant previous year for which depreciation is sought. 4. In case of intangible asset, asset should have been acquired after 31/03/1998.
Allowed Methods of Depreciation

Written down value method is used as the method of depreciation. In case of enterprises involved in generation or generation and distribution of power, one-time option of straight line method or written down value method is allowed.
Block of Assets
Depreciation is allowed on block of assets. Block of assets represents different type of assets as specified above, grouped together based on same percentage of depreciation. For example: All Buildings with 5% depreciation. There are 19 Block of Assets as given below:
Class of Assets
Tangible Assets Tangible Assets Tangible Assets Tangible Assets Tangible Assets Tangible Assets Tangible Assets Tangible Assets Tangible Assets Tangible Assets Tangible Assets Tangible Assets Intangible Assets Intangible Assets Intangible Assets Intangible Assets Intangible Assets Intangible Assets Intangible Assets
Type
Buildings Buildings Buildings Furniture Plant & Machinery Plant & Machinery Plant & Machinery Plant & Machinery Plant & Machinery Plant & Machinery Plant & Machinery Plant & Machinery Know-how Patents Copyrights Trade Marks Licenses Franchises Other Rights
Block No
Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Block 9 Block 10 Block 11 Block 12 Block 13 Block 14 Block 15 Block 16 Block 17 Block 18 Block 19
Depreciation Rate
5% 10% 100% 10% 15% 20% 30% 40% 50% 60% 80% 100% 25% 25% 25% 25% 25% 25% 25%
Special Conditions
1. Block exists but WDV of block becomes zero: in this case no depreciation is allowed. The value of block reduced below zero is termed as Short Term Capital Gain. 2. Block ceases to exist but WDV exists: in this case no depreciation is allowed. The value of block is Short Term Capital Loss. 3. In case of succession, amalgamation, business reorganization, and de-merger in the year in which this occurs, depreciation is calculated as: a. Calculate depreciation for previous year in which such change occurs as if such change did not take place. b. Amount of depreciation as calculated above is apportioned between the: i. Predecessor and successor ii. Amalgamating and amalgamated company iii. Demerged and resulting company As the case may be, in the ratio of number of days for which the assets are used by predecessor and successor/amalgamating and amalgamated company/ demerged and resulting company during the previous year in which ownership changes. 4. If the asset is put to use for less than 180 days in the year in which it is acquired then depreciation on such asset will be 50% of normally calculated depreciation. But in case the asset has been used even for one day in the subsequent year then the depreciation would be calculated on the normal rate.
Additional Depreciation
If the assessee is engaged in manufacture or production of any article or thing, and has acquired and installed a new eligible plant and machinery after 31/03/2005, then assessee is eligible for additional depreciation.
Assets not Eligible for Additional Depreciation

1. 2. 3. 4. 5. 6. Intangible Assets Buildings Furniture Ships and Aircrafts Used Plant or Machinery Plant or Machinery installed in any office premises or residential accommodation or guest house 7. Any office appliances or road transport vehicles 8. Any plant or machinery, the whole of the actual cost of which are allowed as a deduction in computing income chargeable under the head Profits and Gains of Business or Profession for any previous year
Additional Depreciation Rate

Additional depreciation rate is 20%. If the asset is put to use for less than 180 days in the acquired year then the additional depreciation rate will be 10%. Additional depreciation is available only in the year in which the new plant or machinery is first put to use.
Calculation of Depreciation as per Companies Act

Depreciation Book Card
Navigation: Financial Management Fixed Assets Set up Depreciation Book
Field Description:
Use Fiscal Year Days: Place a check mark in this field and the program will automatically take the denominator as 365 days for the depreciations calculation. Denominators value will be 366 days for the leap year. Click General Ledger, Setups, Accounting Periods
Create accounting period for calculating depreciation.
Use Fiscal Year Days field in Depreciation Book card has the number of days as defined in Accounting Periods. The program will automatically take the denominator as 365 days for the depreciations calculation. Denominators value will be 366 days for the leap year.
Fixed Asset Card

For each fixed asset, you must set up a card containing information about the asset.
Navigation: Financial Management Fixed Assets Fixed Assets
To create a Fixed Asset, fill the fields in FA card as follows:

No. : Description: Serial No. : FA Class Code: FA Sub class code: FA location code: Depreciation Book Code: FA posting Group: Depreciation method: Depreciation starting date: Straight-line %: FA000130 Plant & Machinery FAPM01 Tangible Machinery Prod. Company Machinery Straight-line 01/04/06 20.00
Book value:
2, 00,000
Book value will be affected after making Acquisition of Fixed Asset through FA G/L Journal or Purchase order/Invoice.
Calculating Depreciation
Navigation: Financial Management Fixed Assets Periodic Activities Calculate Depreciation.
On the Fixed Asset tab, you can set a filter to select the assets he/she wants to depreciate. For example: enter FA000130 in the Filter field. On the Options tab, enter the information shown in the following picture:
Click OK to calculate the depreciation on 31/03/07 The batch job has calculated depreciation for fixed asset number FA000130 and created lines in the Fixed Asset G/L Journal window. Click Fixed Assets, FA G/L Journals. The Fixed Asset G/L Journal window appears .
The batch job has calculated depreciation for fixed asset number FA 000130 and created lines in the Fixed Asset G/L Journal window.
The No. of Depreciation Days field has been filled in. When you run the batch job, the program calculates depreciation only over the number of days entered in this field. The program normally would calculate the depreciation days The balancing line is created because the Insert Bal. Account field on the Options tab for the Calculate Depreciation batch job is selected. Click Posting, Post to post the journal.

To see the posted entries for fixed asset number FA000130, follow these steps: Click Fixed Assets, Fixed Assets. Browse to the card for FA000130.
On the line, in the Book Value field, click the Assist Button to open the FA Ledger Entries window.
Depreciation has been calculated by taking the values as follows: Book value: FA posting date of depreciation: Depreciation period (12 months): Rs. 2,00,000 31/03/07 (depreciation ending date) 365 days.
Calculated depreciation amount = 200000*20/100*365/365 = 40000 .
Minor Assets
There are two significant settings in the FA depreciation book for minor assets: The depreciation method is normally straight-line. The depreciation starting date and the depreciation ending date are the same. Due to this reason the program always calculate 100% depreciation; even other acquisitions and depreciation have already been posted to this asset. Example Create a fixed asset called Minor Assets 5000 The fixed asset should have the following depreciation book information Depreciation Book Code: FA posting Group: Depreciation Starting Date: Depreciation ending Date: Company Machinery 01/04/06 01/04/06
You can set up a separate G/L account and FA posting Group for minor asset depreciation. However, for this example we will simply use the existing machinery posting group.
Using the FA G/L journal, add the following acquisition costs for the year. The balancing account number for each acquisition is G/L account 2910.
Date
01/04/06 01/07/06 01/10/06
Acquisition
1000 1000 1000
Once you have posted the journals, the Minor Assets 5000 Fixed Asset card should look like this:
You set up one Minor Asset per year in Fixed Asset Card because the legislation for minor assets may change from one fiscal year to the next. Each time you purchase an asset that is classed as a minor asset, you post the acquisition cost and depreciation to the same Minor Asset Card you have set up. The acquisition costs of all minor assets will be collected on this asset and depreciated by 100% when the next periodic depreciation is calculated. Click Fixed Asset, Periodic Activities, Calculate Depreciation. On the Fixed Asset Tab, enter the No. from the minor asset fixed asset card in the No. Filter field. Fill in the Options Tab as follows: Depreciation Book: FA Posting Date: Posting Date: Description: Company 31/03/07 31/03/07 Depreciation Minor Asset 5000.
Click OK to run the batch job and then click Fixed Assets, FA G/L journals to look at the journal created by the batch job. Click Functions, Insert FA Bal. Account to insert a balancing account and then post the journal. If you open the Fixed Asset card for the minor assets you will see that the book value is 0. You can see the journal entries by clicking the Assist Button in the Book Value field.
The above example shows several postings of acquisition costs during a fiscal year and one yearly calculation of depreciation. However, you can also depreciate minor assets every month if you want. The asset will always depreciate 100% of the current book value at the time the depreciation is calculated. If you had run the Calculate Depreciation batch job on 30/09/06 (before you entered the 01/10/06 acquisition), and then run it again on 31/03/07, you would get the following result:
Date
01/04/06 01/07/06 30/09/06 01/10/06 31/03/07
Acquisition Cost
1000 1000
Depreciation
-2000
1000 -1000
Multiple Shifts
If the particular asset is used in single shift for 3 months, in double shifts for 3 months, and in triple shift for 6 months in a particular financial year you need to go through the information given below.
Navigation:
Financial Management Fixed Assets Set up Depreciation Book
Fill in the fields according to these guidelines: Field No of Days Non Seasonal Comments Define 180 days or actual working days of the concern whichever is higher. Define 240 days or actual working days of the concern whichever is higher.
No of Days Seasonal
Fixed Asset Card

For each fixed asset, user must set up a card containing information about the asset. Navigation:
Financial Management Fixed Assets Fixed Assets
To create a Fixed Asset, fill the fields in FA card as follows:

No. : Description: Serial No. : FA Class Code: FA Sub Class Code: FA Location Code: Depreciation Book Code: FA posting Group: Book Value: FA000130 Plant & Machinery 01 PM01 Tangible Machinery Prod. Company Machinery 1, 00,000
Book value will be affected after making Acquisition of Fixed Asset through FA G/L Journal or Purchase order/Invoice . Click Depr. Book, Shifts
When the asset is used in multi shifts then you have to fill the FA shift form in the FA card.
Field Depreciation Book Code
Comment The Depreciation Book Code is set to default value automatically from the Fixed Asset card. The FA Posting Group is set to default value automatically from the Fixed Asset card. Define the starting date of asset used in shift. Define the ending date of the asset used in shift Define the depreciation method applicable for the asset. Define rate of depreciation in this field. Define the shift type for which the asset has been used. The available options are single, double, and triple. Define the industry type. The available options are Normal, seasonal, and nonseasonal. Normal type of industry is used for single-shift. Define the actual no of days, the asset has been used during the period, when the actual no of days are different from starting date and ending date of depreciation.
FA Posting Group
Depreciation Starting Date
Depreciation Ending Date
Depr. Method
Straight Line % Shift Type
Industry Type
Used no of days
Create FA Shifts card First Line Depreciation Book code: The program automatically inserts a book code (For example Company). FA Posting Group: The program automatically inserts a posting group (For example Machinery). Depreciation Starting Date: 01/04/06 Depreciation Ending Date: 30/06/06 Depreciation Method: Straight-line Straight-line %: 10.00 Shift type: Single
Industry Type: Used No. of Ddays: Second Line Depreciation Book code: FA Posting Group:
Normal 50.
The program automatically inserts a book code (For example Company). The program automatically inserts a posting group (For example Machinery).
Depreciation Starting Date: 01/07/06 Depreciation Ending Date: 30/09/06 Depreciation Method: Straight-line Straight-line %: 20.00 Shift type: Double Industry Type: Seasonal Used No. of days: 40 Third Line Depreciation Book code: FA Posting Group: The program automatically inserts a book code (For example Company). The program automatically inserts a posting group (For example Machinery).
Depreciation Starting Date: 01/10/06 Depreciation Ending Date: 31/03/07 Depreciation Method: Straight-line Straight-line %: 30.00 Shift type: Triple Industry Type: Seasonal Used No. of Days: 100. Close the form. Note 1: You have to create the FA Shifts form for each asset that has been used for multiple shifts in FA Card. Note 2: If the concern is working for only single shift: When the concern is working in single shift the depreciation calculation will be done from FA Card line level; you only need to place a check mark in the use fiscal year days field in the Depreciation book card, after which the program will calculate the depreciation by taking the denominator either as 365 days or 366 days (in case of leap year). Also, there is no need to fill any FA Shifts form in the FA card. For every financial year you have to create new lines in shifts form if the asset is used in multi shifts.
Note 3: If you have defined some or all fields in the line level of the Fixed Asset card and have also defined in the FA shift form in FA card then application will give priority to the shift form. Note 4: If you have placed a check mark in the use fiscal year days field in the depreciation book and also defined the FA shift form in FA card then the program will give priority to the shift selected from the drop down box and the denominator for calculating the depreciation will be as follows. For Single shift - denominator will be the 365/366 days if you have placed a check mark in the depreciation book card. For double shift: - denominator will be the days defined in the No days Seasonal /Non Seasonal field in the Depreciation book card. For triple shift- denominator will be the days defined in the No days Seasonal /Non Seasonal field in the Depreciation book card.
Note 5: As per the law shift type single will always known for Normal Industries and Shifts type Double/Triple will always known for seasonal/ non-seasonal industries. Note 6: While entering Depreciation Start date and Depreciation End date in shifts form (for particular FA card) program will not allowed any overlapping of these dates. Example if in first line you have mention 01/04/06 (start date) and 30/06/06 (End Date), on second line you are not permitted to any date lying between 01/04/06 to 30/06/06. This validation is valid for the same financial year.
Calculating Depreciation
Navigation:
Financial Management Fixed Assets Periodic Activities Calculate Depreciation.
On the Fixed Asset tab, you can set a filter to select the assets you want to depreciate. For example: enter FA000130. On the Options tab, enter the information shown in the following picture:
Click OK to calculate the depreciation on 31/03/07 The batch job has calculated depreciation for fixed asset number FA000130and created lines in the Fixed Asset G/L Journal window. Click Fixed Assets, FA G/L Journals. The Fixed Asset G/L Journal window appears.
The batch job has calculated depreciation for fixed asset number FA 000130 and created lines in the Fixed Asset G/L Journal window. The No. of Depreciation Days field has been filled in. When you run the batch job, the program calculates depreciation only over the number of days entered in this field. The program will calculate the depreciation days. The balancing line is created because the Insert Bal. Account field on the Options tab for the Calculate Depreciation batch job was selected. To post the journal click Posting, Post.

To see the posted entries for FA000130, follow these steps: To browse the card for asset number FA000130, click Fixed Assets, Fixed Assets.
On the line, in the Book Value field, click the Assist Button to open the FA Ledger Entries window
Depreciation has been calculated by taking the values as follows: Book value: FA posting date of Depreciation: Rs. 100000 31/03/07 (Depreciation Ending Date)
Different conditions for depreciations calculation:
For single shift, the program calculates depreciation for 50days, and the denominator will be 365. Calculated depreciation amount = 100000*10/100*50/365 = 1370 For double shift, the program calculates depreciation for 40 days, and the denominator will be as defined in the No. of Days Seasonal field in the Depreciation Book card. Calculated depreciation amount = 100000*20/100*40/180 = 4444 For triple shift, the program calculates depreciation for 100 days, and the denominator will be as defined in the No. of Days Season field in the Depreciation Book card. Calculated depreciation amount = 100000*30/100*100/180 = 16667 Force No of Days field in the calculated depreciation window has no relevance if the user has defined no of days in the Used No Of Days field in the FA Shifts form in the FA card. Note 1: Depreciation will be calculated only if the FA posting date is greater than or equal to the depreciation ending date in FA Shifts form. If the FA posting date is less than the depreciation ending date, then you have to modify the depreciation ending date to calculate the depreciation. Note 2: In case of manual posting of depreciation amount through FA Journal or FA G/L Journal the user has to select the FA Shift Line No. for the corresponding FA Shift Entry for which the Journal line has been made. In Calculate Depreciation Process the FA Shift Line No. field is program generated and should not be changed.
MONTHLY CALCULATION OF DEPRECIATION IN CASE OF SEASONAL / NON SEASONAL INDUSTRIES For calculating the monthly depreciation in case of seasonal or non seasonal industries, the user has to define 12 lines for 12 months in the FA Shift form, because program will not calculate depreciation on pro-rata basis in terms of Used No. of days. Example 1 First Month - April If the starting date of depreciation is 01/04/2006 and the depreciation ending date is 30/04/2006 in Shifts form and 180 days has been defined as concern working days in No. of Days Seasonal field in Depreciation Book Card. While calculating Depreciation you have to define FA posting date as 30/04/06 in calculate Depreciation window. The program will take the denominator as 180 days and numerator as 30 days. Book value is Rs. 50000 and Rate of Depreciation is 20%
Calculation of Depreciation as per WDV. 50000*20/100 *30/180 = 1667. (Depreciation for April).
Second Month - May If the starting date of depreciation is 01/05/2006 and the depreciation ending date is 31/05/2006 in shifts form and 180 days has been defined as concern working days in No. of Days Seasonal field in Depreciation Book Card. While calculating Depreciation user has to define FA posting date as 31/05/06 in calculate Depreciation window. The program will take denominator as 180 days and numerator as 31 days. Book value is now Rs. 48333. Calculation of Depreciation as per WDV. 48333*20/100 *31/180 = 1665. (Depreciation for May).
FA Reports
Navigation: Financial Management Fixed Assets Reports Fixed Assets Depr. Schedule for Comp. Act
Field
Comments
Specify the Start Date with which you want
Start Date
the report to be generated (01/04/067) Specify the End Date with which you want the report to be generated (31/03/07)
End Date
Click the Preview Button.
Calculation of Depreciation as per Income Tax Act

Navigation:
Financial Management Fixed Assets Setup Depreciation Books
Depreciation Book Card
Fields
Book Type
Comments
Select the book type as Income Tax. In this case all applicable rules for Income Tax will be calculated for the depreciation book.
Depr. Threshold Days Define the threshold no of days where 50% of the normal rate is applicable. If the asset has been acquired during the year and asset has been put to use less than 180 days then depreciation rate is 50% of the normal rate. Depr. Reduction % Define the reduction rate
Note:
The program checks the acquisition date and the starting date of depreciation in the Fixed Asset card. If acquisition date and starting date fall in the same accounting period then the depreciation rate is 50% of the normal rate. If the acquisition date and starting date of depreciation fall in different accounting periods then the system calculates the depreciation rate as per normal rate
FA Classes
Navigation: Financial Management Fixed Assets Setup FA Classes
Select the FA class code and click the block menu button to open the new window as follows:
Fields
FA Class
Comments
The program automatically inserts the value in FA Class field. Define the code for the Block, for example: Block1, Block2, and so on. Define the description of the code fields
Code Description Book Value
Displays the book value of the block. The opening balance of the block can be entered through FA journal. Subsequently, at the time of addition or deletion of asset, the value automatically gets updated in the book value field. There are two different conditions when no depreciation is charged for the block: The value in the Book Value field becomes short term capital gain if the amount in Book Value field is less than zero and the number of assets existing in the block is one or more than one. The value in the Book Value field becomes short term capital loss if the amount in Book Value field is more than zero and the number of assets existing in the block is zero. Depreciation % Define the rate of depreciation for the block. Add Dep % Define the additional depreciation rate for the block. At present additional depreciation is applicable to only selected plant and machinery block. No. of Assets The program automatically calculates the No. of Asset existing in the block.
Accounting Period Income Tax

As per the Income Tax Act, accounting period is always April to Mach but it may be different in the Companies Act. A user needs to create the accounting period ever year .
Navigation: Financial Management Fixed Assets Setup FA Accounting Periods Inc.Tax
Click the Create Year button to create a new fiscal year.
Fields
Starting Date
Comments
Define the starting date of the accounting period.
No Of Periods
Define the no. of periods for the accounting period. Define the period of length, for example month, quarter and so on.
Period Length
Fixed Asset Card

For each fixed asset, user must set up a card containing information about the asset.
Navigation: Financial Management Fixed Assets Fixed Assets
To create a Fixed Asset, fill the fields in FA Card as follows: No. : Description: Serial No.: Add. Depr. Applicable: FA000140 Machinery 1 M01 Place a check if you want to calculate Additional Depreciation for the particular Asset. FA Class Code: Tangible FA Sub class code: Machinery FA Location code: Prod. FA Block Code: Select the Block from look up button that has been created in Block card. After selecting the Block it means that particular has been attached with the Block. (Block 1) Depreciation Book Code: Income Tax FA posting Group: Machinery Depreciation Method: Straight-line Depreciation Starting Date: 01/04/06 Straight-Line %: 10.00 (The program will automatically insert the % from Block card). Book value: 1, 00,000 Book value will be affected after making Acquisition of Fixed Asset through FA Journal.
To create a Fixed Asset, fill the fields in the FA Card as follows: No. : Description: Serial No. : Add. Depr. Applicable: FA000150 Machinery 2 M02 Place a check if you want to calculate Additional Depreciation for the particular Asset. FA Class Code: Tangible FA Sub Class Code: Machinery FA Location Code: Prod. FA Block Code: Select the Block from look up button that has been created in Block card. After selecting the Block it means that particular has been attached with the Block. (Block 2) Depreciation book code: Income Tax FA Posting Group: Machinery Depreciation Method: Straight-line Depreciation Starting Date: 01/11/06 Straight-Line %: 20.00 (The program will automatically insert the % from the Block card) Book Value: 2, 00,000 Book value will be affected after making Acquisition of Fixed Asset through FA Journal. Click Fixed Asset, Setup, FA Classes, and Blocks:
Now, see that the fields Book Value and No. of Assets have been populated after creating FA card for Block 1 and Block 2. Click the Assist button in the Book Value field to view the FA Ledger entries for the Particular Block (Block 1).
Click the Assist button in the No. of Assets field to view the Fixed Asset list. You can view various types of assets attached with the particular Block (Block 1).
Calculating Depreciation Navigation: Financial Management Fixed Assets Periodic Activities Calculate Depreciation
On the Fixed Asset tab, set a filter to FA Class code as Tangible and FA Block Code as Block 1. You can also depreciate asset wise by mentioning the FA No. On the Options tab, enter the information shown as follows:
Click the OK button to calculate the depreciation on 31/03/07. The batch job has calculated depreciation for the block code Block 1 and created lines in the Fixed Asset Journal window. Click Fixed Assets, FA Journals. The Fixed Asset Journal window Is displayed as shown below:
The batch job has calculated depreciation for block number Block 1 and created lines in the Fixed Asset Journal window. Click Posting, Post to post the journal. Now calculate Depreciation for Block 2
Navigation: Financial Management Fixed Assets Periodic Activities Calculate Depreciation
On the Fixed Asset tab, you can set a filter for FA Class Code as Tangible and FA Block Code as Block 2.
You can also depreciate asset-wise by mentioning the FA No. On the Options tab, enter the information as follows:
Click OK to calculate depreciation on 31/03/07.The batch job has calculated depreciation for the block code Block 2 and created lines in the Fixed Asset Journal window. Click Fixed Assets, FA Journals. The Fixed Asset Journal window is displayed as follows:
The batch job has calculated depreciation for block number Block 2 and created lines in the Fixed Asset Journal window.
Click Posting, Post to post the journal.

To see the posted entries for Block 1 and Block 2, follow the procedure mentioned below: Click Fixed Assets, Set Up, FA Classes, Blocks: Block 1
See that the amount in Book Value field has been changed. Click the Assist button in the Book Value field to view the FA Ledger entries for the particular block (Block 1).
Depreciation has been calculated as follows: Book value was Rs. 100000
Depreciation Starting Date was 01/04/06 and FA Posting Date (Depreciation Ending Date) was 31/03/07 Asset has been put to use for more than 180 days Depreciation calculated is 100000*30/100 = 30000 (10% normal depreciation rate and 20% additional depreciation rate) Block 2
Depreciation has been calculated as follows: Book value was Rs. 200000 Depreciation Starting Date was 01/11/06 and FA Posting Date (Depreciation Ending Date) was 31/03/07 Asset has been put to use for less than 180 days Depreciation calculated is 200000*20/100 = 40000 (10% normal depreciation rate and 10% additional depreciation rate) You can view the posted entries from Fixed Asset card for the particular Asset. Note 1: In Block 2 you have mentioned 20% normal depreciation rate and 20% additional depreciation rate, but the program calculates depreciation with 50% of rate of normal and additional depreciation rate. This is because the asset has been put to use for less than 180 days. Note 2: If the particular asset has been put to use on any day of the subsequent year, then full rate of normal and additional depreciation will be applicable. Note 3: Additional depreciation is allowed only once and that too in the previous year in which the eligible asset is put to use and the asset has been acquired and installed after 31.03.05. Note 4: Additional depreciation allowed shall be deductible while computing the WDV for the next year.
Note 5: If the Book Value of the block becomes negative and no. of assets decrease to zero, then the program will not calculate any depreciation for the particular block. Note 6: The program will not restrict the calculation of depreciation on a monthly (or other periodicity) basis as per Income Tax Act because periodic depreciation may help in computation of the advance tax of the assessee. If any asset of a block has been sold on which monthly depreciation has already been posted; then the system will give an appropriate error message and will not allow posting of that asset until all depreciation entries for that year have been cancelled for that block. However, it is advisable not to calculate the depreciation on a monthly basis as per Income Tax Act. Note 7: If the asset has been acquired and put to use in the same year and appreciation has been made to the asset after 180 days of a financial year, then an appreciation amount of 50% of the normal rate is applicable .If the appreciation has been made before 180 days of a financial year, then on an appreciation amount 100 % of the normal rate is applicable. If the appreciation has been made before 180 days of a financial year when asset has been acquired and put to use, then the user has to follow the standard procedure by posting the FA Journal by giving the FA Posting Type as Appreciation. If the appreciation has been made after 180 days of a financial year when asset has acquired and put to use for more than 180 days, then the you have to follow the steps. Step-1: Open a new FA Card; Book value will be affected after making Acquisition of Fixed Asset through FA Journal. FA No: 01 Acquisition cost Rs.100000 Acquisition date: 01/04/06 Starting date of depreciation: 01/04/06 Step-2: Open another FA Card; Book value will be affected after making Acquisition of Fixed Asset through FA Journal. FA No: 02 Acquisition cost Rs.50000 Acquisition date: 01/04/06 Starting date of depreciation: 30/11/06 Take Appreciation as Acquisition, and define start date of depreciation as appreciation date. Step-3: Attach both the assets FA 01 & FA 02, with Block 01. Step-4: Run the batch job for calculating depreciation for Block 01. Step-5: The program will calculate depreciation with 100% rate of depreciation for FA 01, and with 50% rate of depreciation for FA 02. The FA posting date is now 31/03/07 (last day of a financial year).
Step-6: On 01/04/07 (starting day of new Financial year), you will reclassify FA 02 to FA 01 through FA reclassification journal. After reclassification, the program will transfer all the book values including acquisition cost and depreciation amount from FA 02 to FA 01. Step-7: Notice that FA 02 now has a zero book value. Step 8: On 01/04/07, you will dispose FA 02 with zero amount through FA journal. Note 8: In case of Income tax Act, if user has selected User-Defined as Depreciation method the system will not calculate Depreciation. By selection User-Defined system will give error message Depreciation Method must not be User-Defined in FA Depreciation Book FA No. ='', Depreciation Book Code='INCOMETAX'.
Enter an Opening Balance:
If you are entering the opening balance of the fixed asset as per Income Tax Act for the first time, then you have to follow some steps which (steps) can be understood through an example. Example: You want to enter an opening balance on 01-04-2007 then you have to: Open accounting period for the years 2006-07 and 2007-2008 in the Accounting Periods Inc Tax Acquire the asset through FA Journal as on 31-03-2007 in the accounting period 2006-07 Enter 31/03/2007 in FA Posting Date field Select FA number and depreciation book code from the look up list Select FA posting type as Acquisition Cost from the drop down box Enter the amount of opening balance in the Amount field Post the FA Journal Enter 01/04/2007 in the Depreciation Starting Date field of FA card
FA Reports
Navigation: Financial Management Fixed Assets Reports Fixed Assets Depr. Schedule for IT Act
Fields
Start Date
Comments
Specify Start Date that should be used to generate the report (01/04/06)
End Date Specify End Date that should be used to generate the report (31/03/07)
Click the Preview button.
Appendix
As per Companies Act
Example 1: Annual depreciation: Straight Line Method: If a machine cost Rs. 1, 20, 000 on 1/1/2006 assuming the accounting year ends on 31 December and the rate of depreciation is prescribed for SLM as 4.75%. Year Computation Annual Depreciation Accumulated Depreciation Book Written Down Value 114300 108600 102900 97200
1 2 3 4
120000x4.75% 120000x4.75% 120000x4.75% 120000x4.75%
5700 5700 5700 5700
5700 11400 16100 21800
Written Down Value Method: Assume rate of depreciation prescribed for WDV as 15%. Year 1 2 3 4 Example 2: Monthly Depreciation: Straight Line Method: The machine cost Rs. 1, 20,000 on 1/1/2006 assuming the accounting year ends on 31 December and rate of depreciation is prescribed for SLM as 4.75%. Year Computation Annual depreciation Monthly Depreciation Book Written Down Value 120000x4.75%x31/365=484* 119516 120000x4.75%x28/365=437* 119097 120000x4.75%x31/365=484* 118595 120000x4.75%x30/365=469* 118126 120000x4.75%x31/365=484* 117642 120000x4.75%x30/365=469* 117173 Computation 120000x15% 102000x 15% 86700x15% 73695x15% Annual Depreciation 18000 15300 13005 11054 Accumulated Depreciation 18000 33300 46305 57359 Book Written Down Value 102000 86700 73695 62641
January February March April May June
120000x4.75% 120000x4.75% 120000x4.75% 120000x4.75% 120000x4.75% 120000x4.75%
5700
Written Down Value Method: Assume rate of depreciation prescribed for WDV as 5%. Year Computation Annual Depreciation Monthly Depreciation Book Written down value 118471 117090 115561 114082 112553 111074
January February March April May June
120000x15%
18000
120000x15%x31/365=1529 120000x15%x28/365=1381 120000x15%x31/365=1529 120000x15%x30/365=1479 120000x15%x31/365=1529 120000x15%x30/365=1479
Pro-rata depreciation on purchase and sales of Purchase of Asset: Pro-rata depreciation should be calculated for the number of calendar days in a year and taking year duration for 365 days /366 days in case of leap year. Example 3: Purchase Scenario: XYZ limited purchase a machinery of Rs. 2, 50,000 on 1 November 2005. The rate of depreciation is 10%. The XYZ limited closes their account on 31 March every year. As per companies act, the depreciation should be computed as under: Asset Acquired Original Cost 2,50,000 Depreciation for Number of Days 151 Depreciation Rate 10% Depreciatio n Amount =2,50,000x 10%x151/3 65 = 10342
Machinery
1.11.2005
Sales Scenario: XYZ Limited sold machinery Rs. 2, 50,000 on 15 August 2005. This machinery was purchased on 1/4/2005. The rate of depreciation is 10%. XYZ limited close their account on 31 March every year. Asset Acquired Original cost Date of Sales Depreciati on for number of Days 137 Depre ciation rate 10% Depreciati on amount
Machinery
1.04.2005
2,50,000
15.08.2005
=2,50,000 x10%x137 /365 = 9384
Combined scenario of Purchase and Sales: Larsen Ltd. closes their accounts on 31 March 2006 every year. They purchased the machineries as follows: 1. Purchased the machineries (R) costing Rs.1,20,000 on 1/07/2003 2. On 1/01/2004 some machineries (s) were purchased costing 1,20,000 3. On 1/10/2004 again purchased some machinery (T) costing Rs. 20000 4. On 1/01/2005 purchased a new machinery (U) for Rs. 60,000 5. One machinery (Q) costing Rs. 40,000, which was purchased on 1/7/2003 was sold for Rs. 12000 on 1/10/2005. 6. They charged depreciation @ 33.33% on the Written Down Value Method. Machinery Machinery(R) Machinery (S) Total Acquired 1-07-2003 Original cost 1,20,000 2003 (depreciation) 1,20,000x33.33 %x275/365=30 133 1,20,000x33.33 %x91/365 = 9972 40105 2004 (Depreciation) 2005
1-01-2004
1,20,000
2,40,000
Machinery (T) Machinery (u)
1-10-2004
20,000
1-1-2005
60,000
(2,40,00040105=19989 5x33.33%)= 66625 20,000x33.33 %x182/365=3 324 60,000x33.33 %x91/365= 4986
Machinery (Q)
1-7-2003
40,000
40,000X33.33% X275/365=1004 4
(29956X33.33 %)=6696
23260 x 33.33%x183 /365 =3887
Total
80,000
40105
74935
(3,20,0004010535048)=244 847-23260 x33.33%=7 3855
Example 4: Depreciation computation for Seasonal Industries: A sugar industry started crushing on 1/10/2005. The mill was running on three-shift basis. The new milling machinery worth of Rs. 5, 00,000 was installed on 1/11/2005. The company closed the plant on 15 March 2006 due to scarcity of cane. The depreciation rate for triple shift is prescribed @15% p.a on Written Down Value Method. Mill closes their books on 31 March every year. Asset Acquired Original cost Duration of year (Seasonal industry 180 or actual whichever is higher) 180 Depreci ation for number of Days Depr Depreciation eciati amount on rate
Milling Machine
1-11-2005
5,00,000
151
15%
=500,000x15% x135/180= 56250
Depreciation computation for other industries: M/S Suba Pharmaceuticals were running their plant on double shift basis. They have to stop there production on 15/10/2005 due to scarcity of raw material. They cold not operate the plant till 31 March 2006. The opening balance of machinery on 1/04/2005 was 4, 00,000. The rate of double shift depreciation is 7.55% p.a. on Written Down Value Method. Asset Acquired Original Duration of Depreci Depre Depreciati cost year (Other ation ciation on amount industry for rate 240 or number actual of Days whichever is higher)
Milling Machine
01-04-2005
4,00,000
240
198
7.55%
=400,000x 7.55%x19 8/240= 24915
As per Income Tax Act

Example 1: Computation of Written down value & Depreciation: X owns the following assets as on 1/4/2006: Asset Building A Building B Building C Building D Building E Machinery A Machinery B Machinery C Machinery D Machinery E Furniture A Furniture B Rate of Depreciation (%) 10 10 10 5 5 15 15 30 30 30 10 10 Written down value as on 1.04.2006 10,20,000 5,40,000 6,35,000 2,60,000 3,10,000 60,000 1,82,000 1,65,000 4,000 50,000 1,10,000 8,000
The following assets are acquired during the previous year 2006-07 Asset Building F Machinery F Machinery G Machinery H Machinery I Patents Technical Know-how Rate of Depreciation (%) 10 15 15 15 30 25 25 Actual cost 5,40,000 1,12,000 4,000 62,000 16,000 40,000 60,000 Date of acquisition 14-5-2006 15-5-2006 16-7-2006 21-9-2006 21-9-2006 15-4-2006 17-5-2006
The following assets have been sold during the previous year 2006-07 Asset Machinery C Building D Machinery E Sale Consideration 1,10,000 4,00,000 80,000 Date of sale 2-9-2006 21-10-2006 28-03-2007
Determine the depreciation for the assessment year 2007-08 Computation of Depreciation:
Particulars
WDV as on 1-04-2006 21,95,000
Block 1 Building 10% Block 2 Building 5% Block 3 Machinery 15% Block 4 Machinery 30% Block 5 Furniture & Fixtures Block 6 Intangible Assets Total
Additions during the year 5,40,000
Assets sold during the year 0
WDV as on 31-3-2007 27,35,000
Depreciation
2,73,500
5,70,000 2,42,000
0 1,78,000
4,00,000 0
1,70,000 4,20,000
8,500 63,000
2,19,000
16,000
1,90,000
45,000
13,500
1,18,000
1,18,000
11,800
NIL
1,00,000
1,00,000
25,000
3,95,300
Example 2: Written down value of four machines at the beginning of the previous year 2006-07, forming part of a block of assets carrying 15% rate of depreciation was Rs. 5,50,000,which includes Rs. 50,000 of machine which is acquired on 5.1.2006 but put to use on 14-1-2007. The following four machines of the same block were bought as follows: Machinery Q R S T Date of Purchase 5-4-2006 15-5-2006 15-11-2006 15-5-2006 Date when put to use 15-5-2006 31-1-2007 27-3-2007 03-04-2007 Cost (Rs.) 1,00,000 2,00,000 1,50,000 2,00,000
Four machines of this block (other than those that were acquired and put to use for less than 180 days) were sold for Rs. 4, 00,000. Computation of Depreciation on 31/3/2007: (a) WDV at the beginning of the year Additions during the year in the same block (i)Machinery Q acquired and put to use for 180 days or more 1, 00,000 (ii) Machinery S acquired and put to use for less than 180 days and machinery R although acquired in the previous Year for a period exceeding 180 days but put to use for less than 180 days.(2,00,000+1,50,000) 3,50,000
5, 50,000
4,50,000
Total Less: Assets sold during the year WDV on which depreciation is to be charged Depreciation: On Rs. 2, 50,000 @ 15% On Rs, 3, 50,000 @ 7.5% Written Down value at the end of the year
10, 00,000 4, 00,000 6, 00,000 37,500 26,250
63,750 5, 36,250
Example 3: R Ltd. has started a new business of manufacturing paints on 1/04/2006. The company has purchased the following assets during the financial year 2006-07: Asset Actual cost of acquisition Date of Purchase Rate of Depreciation Date on which the asset is put to use 10-4-2006 18-6-2006
Furniture Air-Conditioner installed in office Car Plant-X Plant-Y Plant Z Computer for office Computer for factory
2,00,000 1,00,000
10-04-2006 16-06-2006
10 15
8,00,000 50,00,000 20,00,000 80,000 1,00,000 1,50,000
12-7-2006 11-4-2006 15-9-2006 1-08-2006 1-07-2006 2-7-2006
15 15 15 100 60 60
12-7-2006 28-04-2006 16-11-2006 15-09-2006 1-07-2006 4-07-2006
Computation of Depreciation and Additional Depreciation: Furniture (10%) Plant (60%) Opening WDV as on 1-4-2006 Add: Actual cost of assets acquired during the year WDV as on 313-2007 Less : Normal Depreciation Less: Additional depreciation** WDV as on 104-2007 NIL 2,00,000 NIL 2,50,000 Plant & Car (15%) NIL 79,00,000 Plant (100%) NIL 80,000
2,00,000 20,000 NIL 1,80,000
2,50,000 1,50,000 30,000 70,000
79,00,000 10,35,000* 12,00,000 56,65,000
80,000 80,000 NIL NIL
Normal Depreciation on Plant (15%) has been calculated as under : (1) Depreciation @ 15% on 59,00,000 8,85,000 (2) Depreciation @ 7.5% on Rs. 20,00,000 1,50,000 10, 35,000 ** Additional depreciation has been calculated as under: Plant X Actual Cost Rate of Additional Depreciation Additional Depreciation 50,00,000 20% Plant Y 20,00,000 10% Plant Z Computer for factory 1,50,000 20% Other Assets NIL
NIL
10,00,000
2,00,000
NIL
30,000
NIL
Microsoft DynamicsNav 4.0 IN SP1Direct Debit to PLA.
TABLE OF CONTENTS
Personal Ledger Account (PLA) ...................................................................................... 3 Direct Debit to PLA: ....................................................................................................... 3 Setup ............................................................................................................................... 4 Transactions: ................................................................................................................... 5 Sales Orders : .............................................................................................................. 5 Sales Invoices ............................................................................................................ 15 General Journals ........................................................................................................ 16 Reports:......................................................................................................................... 19 PLA Excise No. Series .............................................................................................. 19 Sales Invoice ............................................................................................................. 20 E.R.-1 ........................................................................................................................ 21
Personal Ledger Account (PLA)

PLA is the record of amount deposited by the manufacturer with the excise authorities in advance for payment of excise as and when, the manufacturer clears goods; he will debit the PLA by the amount of duty payable on those goods. Each debit and credit entry must be made on separate line and assigned a running serial number for each financial year. Only one entry, either debit or credit, can be made against one serial number. When the assessee deposits any amount with the Central Excise authorities for payment towards excise duty, he must make a credit entry in the PLA. At the time of removal of excisable goods assessee pays the duty determined by him by making a debit entry in the PLA. The balance remaining at a given point of time is the amount available for future payment of excise duty. If any goods are removed from the factory without such debit entry or without adequate credit balance in the PLA, they will be treated as goods removed without payment of duty. Generally, corrections are not allowed in PLA. If any corrections become necessary, the original entry must be neatly scored and attested by the assessee or his authorized agent.
Direct Debit to PLA:

When inputs or capital goods on which Cenvat Credit is taken are removed as such from the factory, the manufacturer of final product has to pay an amount equal to Cenvat Credit availed on inputs/capital goods at the time of receipts . If they are removed after processing from the factory the manufacturer has to pay an amount of Excise Duty as computed at the time of removal. Both can be done by debiting the Personal ledger Account (PLA).
Setup
Financial Management Setup Excise Excise No. Series List Define a separate Number Series for each E.C.C. No. such that PLA entry no. for each PLA gets generated based on the defined series
Transactions:
Sales Orders :
1. Sales and Marketing Order Processing Orders a) Create a new Sales Order for a customer. Select excisable item on the line level and fill in all the line details. Select the excise structure and calculate structure values for the line items. b) Checkmark the field Direct Debit to PLA if the Excise amount of the selected line has to be Directly Debited to PLA. c) Direct Debit to PLA field is available through Show Column on sales document sub form. d) Direct Debit to PLA is applicable for sales of items and Fixed Assets.
Goods removed as such
If goods are removed as such ( i.e. without any further processing/manufacturing after being purchased) then the following excise amount fields can be selected from Show Column on Sales Document sub form and can be edited: BED Amount, AED (GSI) Amount, AED (TTA) Amount, SED Amount, SAED Amount, Cess amount, NCCD Amount, eCess Amount, ADET Amount, ADE Amount. Enter the Excise amounts paid at the time of purchase of the same if the excise amount is different. Normally the values in these fields should not be changed.
e) Click on Function-> Direct Debit to PLA
f) Following form will be opened. Enter the fields under column PLA with the Excise Amounts allocation duty wise. (All other Fields are not editable). The total of the Excise amount entered in these fields should be equal to the total of Excise Duty Payable amount .Close the form after allocations.
g) Post the sales Order: Posting -> Post
The errors/warnings will be displayed in the test report of the sales order/invoice. This will help the user to identify any missing steps.
h) Ship and Invoice: Do the Ship and Invoice for the Order.
i) Go to Sales and Marketing History Posted Invoices
h) Click on Navigate Button . Following screen will be displayed
i) Please note that PLA entries are created. Debiting the Excise Payable and crediting the PLA. j) The GL Entry table will show following entries
Thus the Excise amount will be Directly Debited to PLA and an entry will be generated in PLA Entry Table. The PLA Entry No. field will be populated with the number generated from the E.C.C. No. & Type combination of Excise No. Series table: PLA entry No is a new field in the PLA Entry Table. The PLA Entry No. would also be populated on Posted Sales Invoice Header. In the sales invoice report the PLA Entry No is displayed. Screen shot is shown in the last page.
During the process of Pay Excise from General Journal and while payment of Excise duty through PLA then also the PLA entry No. is populated in the PLA Entry Table based on the No series as defined in the Excise No Series table..
Sales Invoices
a) Do the standard steps for creation of sales invoice. b) Check the field Direct Debit to PLA if the Excise amount of the selected line has to be directly debited to PLA
c) Follow the steps of Sales Order except for Ship and Invoice.
General Journals
a) Periodic Settlement of Excise Duty Payable: Financial Management General Ledger General Journal. For Periodic Settlement of the line transactions for which Direct Debit to PLA is unchecked in Sales Order/ Invoices along with other Sales Orders /Invoices.
b) Click on Functions -> Payments Excise The Invoices which have Excise Amount Payable will appear for the purpose of periodic settlement.
c) Click on button Apply Entries. The following screen will appear.
d) Enter the Excise Payable amount in the relevant fields viz RG 23 A, RG 23 C, PLA. Note : The amount of excise payable will not include the Direct Debit to PLA transactions.
Reports:
PLA Excise No. Series
Financial Management Reports Excise Reporting PLA Excise No. series This Report will be generated ECC No. wise and Month wise and will show the PLA Entry No. of various entries.
Sales Invoice
Sales Invoice with PLA Entry No. and Direct Debit to PLA.
E.R.-1
The following new features have been added in the E.R.-1 Report: 1) Excise Prod. Posting Group, Unit wise grouping so that the system shows different unit of measures under same chapter heading. 2) Another section added for Removed As Such goods (The goods which are removed without any Manufacturing/Processing). In case of Removed As Such for a given Unit & Excise Prod. Posting Group this section is displayed
Microsoft Business Solutions Navision 4.0- Indian Value Added Tax
Table of Contents
Overview of Functionality ...................................................................................... 4 Detailed Setup ................................................................................................... 4 Comprehensive Functionality ............................................................................ 5 Reports.............................................................................................................. 5 Definitions ............................................................................................................. 6 Value Added Tax (VAT) .................................................................................... 6 Input VAT .......................................................................................................... 7 Output VAT........................................................................................................ 7 Input VAT Credit ................................................................................................ 8 Input VAT Credit on Capital Goods ................................................................... 8 Input VAT and Input VAT Credit ........................................................................ 8 VAT Rounding Off ............................................................................................. 9 VAT Setoff and Carry Forward .......................................................................... 9 Inter State Purchases, Sales, and Branch Transfers......................................... 9 Exports, Deemed Exports, and Supply to EOU Units ........................................ 9 Composition Scheme ........................................................................................ 9 Lease Transactions ......................................................................................... 10 Debit Notes/ Credit Notes ................................................................................ 10 Adjustments in TAX Credit Due to Changes in Usage .................................... 10 Adjustments in TAX Credit Due to Goods Lost / Destroyed or Consumed ...... 10 Setup- Sales Tax (Value Added Tax).................................................................. 11 Schedules........................................................................................................ 11 States .............................................................................................................. 13 Deferment Period ............................................................................................ 14 Schedule ......................................................................................................... 16 Forms .............................................................................................................. 17 TAX Jurisdictions............................................................................................. 18 Tax Details ...................................................................................................... 19 Company Information ...................................................................................... 20 Location Card .................................................................................................. 22 Customer Card ................................................................................................ 23 Vendor Card .................................................................................................... 24 Item Card......................................................................................................... 25 Calculation of Input VAT on Item ........................................................................ 25 Viewing the Ledger Entries.............................................................................. 27 Calculation of VAT on Capital Goods.................................................................. 30 Viewing the Ledger Entries.............................................................................. 33 Calculation of VAT if the Vendor has opted Composition Scheme ..................... 36 Viewing the Ledger Entries.............................................................................. 37 Calculation of Retention Limit on VAT. ............................................................... 40 Viewing the Ledger Entries.............................................................................. 41 Calculation of Vat able Purchase Tax on CST .................................................... 45 Viewing the Ledger Entries.............................................................................. 46 Calculation of VAT if Purchases are meant for Export or Deemed Export .......... 49 Purchase Credit Memo. ...................................................................................... 49
Viewing the Ledger Entries.............................................................................. 50 Calculation of Output VAT .................................................................................. 54 Viewing the Ledger Entries.............................................................................. 54 Calculation of Output VAT in case of Standard Deduction .................................. 57 Viewing the Ledger Entries.............................................................................. 58 Sales of Goods in case of Export or Deemed Export / VAT Exempted ............... 60 Sales Credit Memo ............................................................................................. 61 Viewing the Ledger Entries.............................................................................. 62 VAT Adjustment .................................................................................................. 65 VAT Settlement ................................................................................................... 76 View the posted Ledger Entries....................................................................... 81 VAT Reporting .................................................................................................... 87 Interstate Sales and Purchases....................................................................... 88 Intrastate Sales and Purchases....................................................................... 90 Purchase Book VAT ........................................................................................ 92 Sales Book VAT .............................................................................................. 94 VAT Settlement ............................................................................................... 95 VAT Deferment................................................................................................ 97 VAT Credit Carried Forward ............................................................................ 99 Viewing and Printing the Tax Invoice ............................................................ 100 Appendix ........................................................................................................... 103
VAT functionality comprehensively covers the Indian VAT scenario. This functionality is a standard solution for the States / Union Territories (UT) that have implemented or are implementing VAT in India. This functionality provides a common solution for the requirements under all Indian States / UTs VAT Acts.
Detailed Setup
VAT functionality contains a detailed setup, which will used in mapping the Tax rate, calculation of Input VAT Credit, Output VAT, VAT Adjustments, and the VAT Settlement process.
Setup Area
T.I.N. Nos.
Description
Various TIN Nos. of the firm are defined. State/UT, first two-digits of the TIN of the State, Deferments for the Capital Goods, Schedules of the State, Specified Period for Refund, Tax Period, Retention Limit incase of Branch Transfer, GL account for Input VAT credit, GL account for Output Tax, GL account for VAT Deferred Account, GL account for VAT payable Account, GL account for VAT Refund, and GL account for Excess Input VAT Credit Carried forward are defined. Item Categories and the Item category, which is a Works contract, are defined. Tax Jurisdiction, the State under which it falls, Tax Type, Retention Limit for Non Taxable Sales and whether this retention limit is loaded on the item are defined. Tax Jurisdiction and the Item Category, the Schedule, Tax Rate, Capital Good, Creditable Good, Standard Deduction, VAT able Purchase Tax, VAT retention limit are defined. All Schedules for States are defined. Tax jurisdiction applicable for Customer/ Vendor State with the Location is defined. If the item is fixed asset, and the Tax Group code for the item are defined. TIN No of the Vendor and whether opted for Composition is defined. TIN No of the Customer and whether the Sale to customer is Export/ Deemed Export Sale or VAT Exempted Sale are
States
Tax Groups
Tax Jurisdictions
Tax details
Schedules Tax Area Locations Item Card Vendor Card Customer Card
Location Card GL Account Card
defined. TIN No of the Location, Location under composition and Export/ Deemed Export Location are defined. Tax Group Code is defined
VAT setup maintained into the system comprehensively covers the following, in cases of Normal items, Capital Goods and GL (Leases): Computation of Input VAT/ CST Computation Input VAT-able Purchase Tax Computation of Input VAT Credit taking care of retentions for items and non-taxable sales and retentions for items purchased for execution for works contacts Computation of Output VAT/CST VAT Reversals/ Adjustments in the cases of Changes in Usage, Lost/Destroyed, Branch Transfers, Non-Business Consumption (with the applicable retention) and Credit Notes VAT Setoff / Settlement process VAT Refund in case of Excess Input Vat Credits carried forward, Current Input VAT credit, and Input VAT credit for the goods exported Refund claimed (if any) with respect to the Excess Input VAT Credits carried forward and Current Input VAT Credit are checked/ monitored with regard to the specified period for refunds applicable in state VAT Act. Financial and VAT entries Above mentioned cases are specific to States and handled accordingly.
Reports
The fundamental VAT reports like Sales Register, Purchase Register, Tax Invoice, IntraState Purchases and Sales, Inter-State Purchases and Sales, Deferment Schedule, VAT Payable Carried Forward A/C, VAT Deferment Account, and VAT Settlement have been covered and VAT rounding off has been taken care of. The information required for the VAT returns for the states has also been provided.
Definitions
Value Added Tax (VAT)
Value Added Tax (VAT) is the tax on the value addition. Invoice method is followed in India for the Value Addition Tax, where in the input tax paid on all the inputs and capital goods used in production, manufacture or process of taxable output is allowed as input VAT credit. .
Base Price
Base price is the base value of the item on which the VAT rate is applied to get input VAT or output VAT.
Input VAT
VAT paid or payable by a purchasing dealer to the selling dealer or the VAT able entry tax / purchase tax paid or payable is defined as input VAT.
Input VAT Credit

Credit available on the input VAT paid / payable on purchases.
Composition Scheme
Presumptive Compounded Tax
VAT Dealer
Dealer, registered under the VAT Act is defined as VAT dealer.
Input VAT Credit Reversal

Reversal of input VAT credit due to change in usage, destruction, loss, sale of capital goods, transfer, and so on is defined as input VAT credit reversal
Output VAT (Capital Goods)

VAT payable on sale of capital goods is defined as output VAT.
Vat Credit Receivable (Capital Goods)

Input tax credit (capital goods) available for set off in current period is defined as VAT credit receivable.
Vat Credit Deferred (Capital Goods)
Input tax credit (capital goods) available and deferred for set off in next periods has been defined as VAT credit deferred.
VAT able Purchase Tax

Taxes other than VAT which are VAT able known as VAT able purchase tax.
Capital Goods
Fixed assets which are capital goods and not in the negative list as defined under respective State VAT Law where purchase of asset was made.
Taxable Turnover
The turnover which is considered for calculating input VAT credit is defined as taxable turnover.
Total Turnover
Total Turnover is defined as aggregate of sale prices of all goods including the transactions if any.
CST Sale
Inter state sale covered under CST act is defined as CST sale.
Out VAT
Tax payable by a registered dealer on the sale of goods effected
Tax Period
Tax period is either a calendar month or any other period as may be prescribed under the State VAT Act for filing the returns to the tax authority
Input VAT
VAT paid on local purchases, means within the same state, is defined as input VAT. A percentage of the input VAT will be available as credit.
Output VAT
VAT payable on sales/ transactions to the customers in the same state is defined as output VAT.
Input VAT Credit

The part of input VAT and VAT able purchase tax that can be used in the settlement process is called input VAT credit. Input VAT credit is available on the input VAT and on the VAT able Purchase tax paid / payable on the purchase of goods to the state. These purchases are from the registered dealer under the respective State VAT Act, who has not opted for the composition scheme and items intended for the purpose of: Sale or resale inside the state Use as raw material or as capital goods in manufacturing and processing of taxable goods Sale in course of export out of territory of India. Inter state trade or commerce.
Input VAT Credit on Capital Goods

Input tax credit on capital goods will be available for traders and manufacturers. Input VAT paid on capital goods will be eligible for tax credit; the same will be adjusted over a period depending on the State (a maximum of 36 equal monthly installments).
Input VAT and Input VAT Credit

The available input VAT credit will be based on the usage of Inputs/ Capital Goods in the taxable and non taxable turnover: USAGE Taxable Turnover Non Taxable Turnover Common Usage INPUT VAT CREDIT Full Input VAT Credit No Input VAT Credit Input VAT Credit = Input VAT x (Taxable Turnover/ Total Turnover)
For VAT in Maharashtra: 1. Partial Input VAT Credit for non taxable turnover 2. Partial Input VAT Credit on fuels In both of the above cases, retention would be 4% of the purchase price. 1. Partial Input VAT Credit for non taxable turnover can be arrived as under Input VAT Credit = (Input VAT Retention amount) + (Retention Amount x (Taxable Turnover/ Total Turnover)) 2. Partial Input VAT Credit on fuels can be arrived as under Input VAT Credit = (Input VAT Retention amount) x (Taxable Turnover/ Total Turnover)
VAT Rounding Off

Any sum payable by the dealer under the VAT Act shall be rounded off to the nearest rupee value. Therefore, if any amount of tax containing a part of rupee consisting of paise for example: 50 paise or more, then it will be increased to the nearest rupee that is to Rs. 1, and if such part is less than 50 paise, it will be ignored.
VAT Setoff and Carry Forward

Input VAT credit amount in relation to any Tax period will be set off against the amount of the Output VAT of the Tax Period. If the input VAT credit exceeds the output VAT in a tax period, then the excess credit will be carried over to the next period. Input VAT credit would be carried up till the end of the specified period and excess unadjusted input VAT credit at the end of specified period, if any, would be used for refund. The specified period and the tax period depend on a particular State.
Inter State Purchases, Sales, and Branch Transfers

Inter State transactions do not come under the purview of State VAT Act. They fall under the purview of CST Act. Purchases: Tax paid on inputs procured (purchases) from other states through interstate sale will not be used for credit. Sales: The output tax payable will be CST and input VAT credit can be used to set off against the CST payable Branch Transfers: Transfer will get input tax credit to the extent of input VAT paid in excess of 4% if supported by m F. Transferee will not get any input VAT credit. f o r
Exports, Deemed Exports, and Supply to EOU Units

Export Sales, Deemed Exports, and supply to EOU units will not come under the purview of State VAT Act. They are considered as zero-rated sales and the input VAT credit is available on the inputs used in these sales. Input VAT credit can be adjusted against output VAT (if any) or refunded in full.
Composition Scheme
Small dealers with annual gross turnover not exceeding the limit, fixed up by the respective State, who are otherwise liable to VAT, shall have an option for a composition scheme where the tax is paid as a small percentage of the gross turnover. No input VAT credit is available to such dealer and the purchases from them will not be considered for input VAT credit.
Lease Transactions
Lease does not involve transfer of title in goods at the time of transaction and involves only right to use an asset for defined period of time. Some State VATs have included lease rentals in sales and output VAT as payable. The output VAT will be on the lease rentals.
Debit Notes/ Credit Notes

When VAT dealer has been issued a credit note or debit note on goods purchased, the tax credit account and the goods cost would be adjusted for the amount. Adjustment will be based on the time of receipt of Debit Notes or Credit Notes; the time here is specified by the State VAT Act.
Adjustments in TAX Credit Due to Changes in Usage

In cases of changes in the expected usage and actual usage of goods for taxable and non taxable turnover, input VAT credit claimed in respect of such purchases will be reduced or increased (as the case may be) in the tax period during which the change in usage takes place.
Adjustments in TAX Credit Due to Goods Lost / Destroyed or Consumed

In case where any goods or goods manufactured on which the input VAT credit have been claimed, are lost or destroyed; the input VAT credit would be reversed on such goods in the tax period in which goods are claimed to have been lost or destroyed. The amount of reversal shall be state specific.
Setup- Sales Tax (Value Added Tax)

Schedules
NAVIGATION: FINANCIAL MANAGEMENT TAX SETUP SALES
NAVIGATION: FINANCIAL MANAGEMENT TAX SETUP SALES SCHEDULE
Define the schedules under the State VAT Act. This form acts as a list form for selecting the schedule in the tax details.
States
NAVIGATION: Fca mu a a t ia aeS s S n l gn e S T a a M et t l x t n n i p ee s
Field
State Code for TIN
Comment
Define the state code used in the TIN No of the state. Select the GL account of the out tax with respect to the state. Select the GL account of the input VAT credit with respect to the state. Select the GL account of the VAT deferred account with respect to the state. Select the GL account of the VAT or CST payable account with respect to the state. Select the GL account of the VAT refund account with respect to the state. Select the GL account of the Carried Forward Excess Vat Credit with respect to the state.
Tax Account (Sales)
Tax Account (Purchases)
VAT Deferred Account No.
VAT Payable Account No.
VAT Refund Account No.
Excess Credit C/F Account No
Branch Transfer Retention
Define the percentage of the retention on the base value above which the input VAT credit is available when branch transfer occurs from the state of the location. Define the tax period of the respective state. Define the specified period according to the state VAT act after which the refund of the Excess Vat Credit Carried Forward can be applied for refund.
Tax Period
Specified Period for Refund
Deferment Period
NAVIGATION: Fca mu a a t D e r ia aeS s S fni n l gn e S T a e t d a M et t l x t n n i p ee e P s r e m o
Field
State
Comments
The state, for which the deferment is defined, gets automatically populated with the reference to the cursor placed in the State form at the time of selecting the deferment period from the state button. Define the date from when the threshold and the deferments are applicable. Define the threshold range for which a
Effective Date
Starting Threshold Amount & Closing
Field
Threshold Amount
Comments
separate deferment is applicable and the effective date. Define number of deferments for the threshold and the effective date.
No of Deferments
Schedule
NAVIGATION: Fca mu a a t S u ia aeS s S e n l gn e S T a c l a M et t l x t h n n i p ee s d e
Field
Schedule
Comments
Select the schedules for the state
Forms
NAVIGATION: Fca mu a a t F ia aeS s S m n l gn e S T a o a M et t l x t r n n i p ee s s
Field
Forms
Comments
Select the form applicable for the state
TAX Jurisdictions
NAVIGATION: Fca mu a a a io ia aeS s T ri n l gn e S T x d s a M et t l x Ji n n i p e ut sn c
Field
Tax Type
Comments
Define the type of tax whether it is VAT or CST with respect to tax jurisdiction. Define the state of the tax jurisdiction. Define the VAT retention limit percentage on the Non taxable sales for the jurisdiction. VAT retention is calculated on base price of the Item.
State VAT Retn Limit % of ITC NTS
VAT Retn Limit loaded on Item
A check mark in this field shows that VAT retention is loaded on Item. The VAT retention is calculated on the input VAT amount.
Field
Comments
If VAT retention limit percentage on the non taxable sales is defined for the tax jurisdiction with the VAT Retn Limit loaded on Item field unchecked, the difference of Input VAT and the retention will be available for input VAT credit and the retention amount is available for Input VAT credit based on the usage in Non Taxable Sales. If VAT retention limit percentage on the Non Taxable Sales is defined for the Tax Jurisdiction VAT Retn Limit loaded on Item field checked, the difference of input VAT and the retention will be available for input VAT credit based on the usage in Non Taxable Sales and the retention amount is loaded on the Item.
Tax Details
NAVIGATION: Fca mu a a at ia aeS s Te n l gn e S T x i a M et t l x Ds n n i p e a l
Field
Comments
Field
Schedule
Comments
Select the schedule of item category in the tax jurisdiction A check mark in this field shows that item categories are considered as capital goods and input VAT credit is available with respect to the tax jurisdiction A check mark in this field shows that item categories on which input VAT credit is available with respect to the tax jurisdiction Define the standard deduction available from the base price to calculate the VAT for the item category in the tax jurisdiction.
Capital Goods
Creditable
Standard Deduction
VAT able Purchase Tax
Define the purchase tax which is VAT able on the item category over and above the CST. The VAT able purchase tax is calculated on the base price and CST. Define the VAT retention on the purchase of item categories with respect to the jurisdiction. VAT retention is calculated on base price of the Item. If the VAT Retn Lt % of ITC on Purch difference of Input VAT and the retention will be available for Input VAT credit based on the usage in Non Taxable Sales and the retention amount is loaded on the Item
VAT Retn Lt % of ITC on Purch
Company Information
NAVIGATION: ADMINISTRATION APPLICATION SETUP GENERAL COMPANY INFORMATION
Field
VAT Composition
Comments
A check mark in this field shows that Company is under composition scheme. Select the type of composition from drop down menu. The options available are: Retailer, Works Contract, Bakery, Restaurant /Club, and Second hand Motor Vehicle. A check mark in this field shows that the Company is into export or deemed export sales.
Types Of Composition
Export or Deemed Export
Location Card
NAVIGATION: W o S a I a au e Lo T ft rs t on a r n e e u cs x m hp t i n i oo
Field
VAT Composition
Comments
A check mark in this field shows that location is under composition scheme. Select the type of composition from drop down menu. The options available are: Retailer, Works Contract, Bakery, Restaurant /Club, and Second hand Motor Vehicle. A check mark in this field shows that the location is into export or deemed export sales.
Types Of Composition
Customer Card
NAVIGATION: Sales & Marketing su eT ft S ts x m a Cm a r n l sr I a e o n i oo
Field
T.I.N No
Comments
Enter the TIN number of the customer. The systems checks the state code for TIN
Field
Comments
defined in States form taking the reference from the state of the location and displays a message: TIN No should stt ah r tX wY i (If the state code for TIN has been defined as XY).
A check mark in this field shows that sale to the customer is either Export or Deemed Export.
VAT Exempted
A check mark in this field shows that customer lies in the VAT Exempted category.
Vendor Card
NAVIGATION: Purchase n V r a r n Pi es x m lg n I a a d T ft n n o n i oo
Field
T.I.N No
Comments
Enter the TIN number of the customer. The
Field
Comments
systems checks the state code for TIN defined in States form taking the reference from the state of the location and displays a message: TIN No should stt ah r tX wY i (If the state code for TIN has been defined as XY).
Composition
A check mark in this field shows that vendor is under composition scheme
Item Card
NAVIGATION: Purc n I T ft h Pi t a r n a lg m x m s a s Ia e n ne n i oo
Field
Fixed Asset
Comments
A check mark in this field shows that the item is a fixed asset.
Calculation of Input VAT on Item
NAVIGATION: Purc Processing h Order a s e Orders.
To create a purchase order, fill the fields in Purchase Order as follows:

Vendor: Location: Structure: Item: Quantity: Direct Unit cost Excluding VAT: Line Amount Excluding VAT: Non ITC Claimable Usage %: Calculate Structure Value. The system will calculate the VAT and distribute the VAT amount in Amount Loaded on Inventory and Input Credit/Output Tax Amount fields. Post the Purchase Order as Receive and Invoice. 10000 (Delhi Postmaster) Blue VAT 1000 (Bicycle) 10 1000 10000 (The system will calculate it.) 50

NAVIGATION: Pa History us r c h e Posted Invoice.
The user can view the posted transaction- G/L Entry and Details Tax Entry.
The system will create the following entry: Purchase A/C Purchase Tax A/C To Vendor A/C Dr. Dr. Cr. 10500 500 11000.
VAT has been calculated by taking the values as follows: Base Value: VAT %: Non ITC Claimable Usage %: Tax Amount: Amount Loaded on Item: ITC: 10000 10 50 1000 500 500.
We have given 50% usage, and the system has allocated the tax amount (50%) each in Loaded on Item and ITC. If the Non ITC Claimable Usage % is 0, then the whole tax amount will be available for ITC. The system will also create a Detail Tax Entry. The user can view it by pressing Crlt+F8 (Zoom).
In the above window Input Credit/Output Tax Amount field has value as: 500 and Amount Loaded on Item field has value as: 500. Note 1: VAT can be calculated only if the vendor is matching with the location s state state. In the above case vendor state is Andhra Pradesh and the location state is also Andhra Pradesh. Note 2: For calculation of ITC, the Creditable Goods field in Tax Details Setup should be true.
Note 3: If the user is not using location card and kept the location code blank in purchase order/invoice then also system will calculate VAT on the basis of Company Information. Calculation of VAT for Item can also be done by Purchase Invoice.
Calculation of VAT on Capital Goods.

NAVIGATION: Pa Order Processing us r c h e Orders.

Vendor: Location: Structure: Item: Quantity: Direct Unit cost Excluding VAT: Line Amount Excluding VAT: Non ITC Claimable Usage %: 10000 (Delhi Postmaster) Blue VAT 1000 (Bicycle) 10 50000 500000 (The system will calculate it.) 50
Place a check mark in Fixed Asset field in Item Card. Calculate Structure Value. The system will calculate the VAT and distribute the VAT amount in Amount Loaded on Inventory and Input Credit/Output Tax Amount fields.
The user can view the deferment schedule before posting the Purchase Order. Click the Order button and select Deferment Schedule.
The system will create the deferment entries according to the define deferment periods in the State setup. In the above window the user can check if the system is making the correct deferment schedules and the ITC will distributed in the future deferment periods equally. The user can print deferment schedule before posting.
Enter the value in Document No. field: Click Preview.
106627
This report will give the clear picture of the deferment schedules. Post the Purchase Order as Receive and Invoice.

The system will create the following entry: Fixed Asset A/C Dr. 525000
VAT Deferred A/C To Vendor A/C
Dr. Cr.
500000 10 50 50000 25000 25000.
25000 550000.
VAT has been calculated by taking the values as follows: Base Value: VAT %: Non ITC Claimable Usage %: Tax Amount: Amount Loaded on Item: ITC:
We have given 50% usage, the system has allocated the tax amount 50% each in Loaded on Item and ITC. If the Non ITC Claimable Usage % is 0, then the whole Tax Amount will available for ITC. The system will also create Detailed Tax Entries.
The system will create 11 detail tax entries, because in the setup we have defined 10 deferment periods. First entry will be identified as ITC available for settlement in the same tax period and the rest ten entries are transferred to VAT deferred account.
Note 1: Fixed Asset Deferments will be created only if the per unit cost price of fixed asset is lying between the starting and ending threshold amount. Note 2: It is mandatory to place a check mark in Capital Goods fields in Tax Details setup if the user wants to calculate Deferments Schedules for a fixed assets. Note 3: The same can be done if the user is using Fixed Asset module. In this case the user has to create a FA card and has to mention the tax group code in FA card. Note 4: If the user is not using FA Module and still want to make deferments for Fixed Asset then the user should place a check mark in Fixed Asset field in Item card. Note 5: It always advisable to create separate Purchase order/invoice for item,GL and Fixed Asset.
Calculation of VAT for fixed Asset can also be done through Purchase Invoice.
Calculation of VAT if the Vendor has opted Composition Scheme

Place a check mark in Composition Scheme field in Vendor card.
NAVIGATION: Pa Order Processing us r c h e Orders

Place a check mark in the Composition field. Calculate Structure Value.
The system will calculate the VAT and the tax amount will be loaded on item because the Vendor has opted Composition scheme. Post the Order with Receive and Invoice.

NAVIGATION: Purchase History Posted Invoice.
The system will create the following entry: Purchase A/C To Vendor A/C Dr. Cr. 11000 11000.
The system will calculate the VAT amount and the whole tax amount will be loaded on Item. The system will also create Detail Tax Entries.
In the above window Input Credit/Output Tax Amount field has the value as: 0 and Amount Loaded on Item field has the value as: 1000.
Note 1: If the user has opted a Composition scheme then the user has to place a check mark in Location card and also mention the type of Composition. The user has to follow the same process that has been followed in case when the vendor has opted for Composition scheme. Note 2: The system will calculate the VAT amount and tax amount will be loaded on Item.
Note 3: If the user is not using location card then he/she has to place a check mark in composition scheme field in Company Information master setup and also select the type of composition. These cases can also be handled through Purchase Invoice.
Calculation of Retention Limit on VAT.

Mention the VAT Retention limit % of ITC NTS as 4% in Tax Jurisdiction. NAVIGATION: Pa Order Processing us r c h e Orders

Calculate Structure Value. The system will calculate the VAT and distribute the VAT amount in Amount Loaded on Inventory and Input Credit/Output Tax Amount fields.
Post the Purchase Order as Receive and Invoice.

The system will create the following entry: Purchase A/C Purchase Tax A/C To Vendor A/C Dr. Dr. Cr. 10200 800 11000
VAT has been calculated by taking the values as follows: Base Value: 10000 VAT %: 10 Retention limit %: 4 Non ITC Claimable Usage %: 50 Tax Amount: 1000 Amount Loaded on Item: 200 ITC: 800 Steps for calculation of retention limit: Step 1: Retention has been calculated on the base amount (10000*4%) = 400. Step 2: Retention amount 400 has been deducted from the tax amount which is 1000. 1000-400= 600. In this case 600 is ITC. Step 3: Non ITC Claimable Usage % is 50. It means 50% of 400. 400*50% = 200, it will be loaded on Item and the rest 200 will be available for ITC. We have given 50% usage, the system has allocated the tax amount 50% each in Loaded on Item and ITC. If the Non ITC Claimable Usage % is 0, then the whole tax amount will available for ITC. The system will also create Detail Tax Entries.
The user can view it by pressing Crlt+F8 (Zoom) keys.
In the above window Input Credit/Output Tax Amount field has the value as: 800 and Amount Loaded on Item field has the value as: 200. Following are the permutations and combinations for the calculation of Retention Limit in NAVISION. 1. Retention Limit are defined at Tax Jurisdiction or Tax Details Individually a) The Retention Limit is defined at Tax Details level. Input VAT credit based on the Non ITC Claimable Usage % is calculated on the Input VAT/ Vat able Purchase Tax Retention Amount and the balance of the Input VAT/ Vat able Purchase Tax is loaded on Item/Capital Goods
b) The Retention Limit is defined at Tax Jurisdiction level. VAT Retn Lt loaded on Item field will be unchecked. Input VAT Credit will be calculated as: (Input VAT / Vat able Purchase Tax Retention Amount) + Balance of the Input VAT/ Vat able Purchase Tax x Non ITC Claimable Usage % c) The Retention Limit is defined at the Jurisdiction level and VAT Retn Lt loaded on Item field will be checked. Retention amount will be loaded on Item/Capital Goods and the remaining amount ( Input VAT/ Vat able Purchase Tax Retention amount) is available for input VAT credit based on the usage. 2. Retention Limit are defined at Tax Jurisdiction and Tax Details a) Retention Limit at Tax Jurisdiction with VAT Retn Lt loaded on Item field is unchecked. The Input VAT credit and the amount loaded on item/ Fixed Asset are used as: V = Input VAT/ Vat able Purchase Tax X = Retention Amount as defined at Jurisdiction Y = Retention Amount at Tax Details i. If V>Y Input VAT Credit will be (V-Y) x ( (100- Non ITC Claimable Usage %)/100) ii. If (V-X-Y) <= 0 and V< Y Input VAT Credit will be 0
The balance of Input VAT/CST (Input VAT/CST - Input VAT Credit) is loaded on the item. b) Retention Limit at Tax Jurisdiction with VAT Retn Lt loaded on Item field is checked. The Input VAT credit and The Amount loaded on item/ Fixed Asset are arrived as under V = Input VAT/ Vat able Purchase Tax X = Retention Amount as defined at Jurisdiction Y = Retention Amount at Tax Details i. If (V- Y) <= 0 Input VAT Credit will be 0 If (V- Y) > 0 Input VAT Credit will be
ii.
(V-Y) x ( (100- Non ITC Claimable Usage %)/100) The balance of Input VAT/CST (Input VAT/CST - Input VAT Credit) is loaded on the Item.
Note 1: All retentions limit calculations can be done for Fixed Asset and GL. Note 2: Retention limit calculation can be done for VAT as well as Vat able purchase tax if applicable. These types of calculations can also be handled through Purchase Invoice .
Calculation of Vat able Purchase Tax on CST

NAVIGATION: Pa Order Processing us r c h e Orders

Vendor: Location: Structure: Item: 40000 (L i o Fnr,a N Delhi) es m ui t : w w H e r e St e ts e u Blue (State is Andhra Pradesh) VAT 1000 (Bicycle)
Quantity: Direct Unit cost Excluding VAT: Line Amount Excluding VAT: Non ITC Claimable Usage %:
10 1000 10000 (The system will calculate it.) 50
Calculate Structure Value. The system will first calculate CST and then the system will calculate the Vat table purchase tax based on base amount and tax amount. Post the Purchase Order as Receive and Invoice.

The system will create the following entry: Purchase A/C Purchase Tax A/C To Vendor A/C To Sales Tax A/C Dr. Dr. Cr. Cr. 12100 1100 11000. 2200
VAT has been calculated by taking the values as follows: Base Value: 10000 CST/VAT %: 10 Vat table Purchase Tax %: 20 (defined in Tax Details setup). Non ITC Claimable Usage %:50 Tax Amount: 1000 Amount Loaded on Item: 2100 ITC: 1100 Steps for the calculation of Vat table purchase tax: Step 1: Base amount is 10000 and the CST % is 10. The system has calculated 10% on 10000 (10000*10%= 1000). Step 2: Now base amount for Vat table purchase tax is 11000 (10000+1000), which is the total of base amount and CST amount. Step 3: Vat able purchase tax% is 20. The system has calculated 20% on 11000. So Vat table purchase tax = 11000*20% = 2200. We have given 50% usage, the system has allocated the Tax amount 50% each in Loaded on Item and ITC. Now the ITC amount is 1100 and amount loaded on item is 2100 (1000 which is CST + 1100 which is 50% is Vat table purchase tax).
If the non ITC claimable usage % is 0, then the whole Vat table purchase tax amount will be available for ITC. The system will also create Detailed Tax Entry.
The user can view it by pressing Crlt+F8 (Zoom) keys.
In the above window Input Credit/Output Tax Amount field has the value as: 1100 and Amount Loaded on Item field has the value as: 2100. Note 1: Vat able purchase tax can be calculated only if the CST is applicable.
Note 2: CST can be calculated if the vendor state is different from the location state. Note 3: Vat able purchase tax can also be calculated for fixed assets. Note 4: If Vat table purchase tax is applicable there may be the case of calculating retention limit on Vat table purchase tax. In this case, the user can calculate the retention limit from Purchase Order/Invoice. Note 5: Vat able purchase tax can also be calculated through Purchase Invoice.
Calculation of VAT if Purchases are meant for Export or Deemed Export

Following are the steps to be followed: Step 1: If the purchases are meant for Export Sales then the user has to place a check mark in Export or Deemed Export field in Location card. Step 2: Create a Purchase Order/Invoice and select the vendor and location (location card in which you have placed a check mark in Export or Deemed Export field). Step 3: Select the structure as: VAT. Step 4: Mention item and quantity with direct unit cost. Step 5: Calculate Structure Value. Step 6: The system will calculate the VAT amount according to the defined percentage. Step 7: Post the Purchase Order. Step 8: Navigate the posted invoice. Step 9: The system will create the normal VAT G/L entry. Step 10: In Detail Tax Entry the Export or Deemed Export field will automatically get checked. It means the system will itself identify that the purchase has been meant for Export Sales and in VAT Settlement it will populate the ITC amount in Input VAT Credit (Exports Sales) field. Note 1: If the purchase is meant for Export Sales then the ITC is available for settlement in the same tax period. Note 2: If the user is not using location card then he/she has to place a check mark in Export or Deemed Export field in company information master card.
Purchase Credit Memo.

NAVIGATION:
Pa Order Processing Memos. us r c h e Credit
To create a purchase credit memo, fill the fields in Purchase Credit Memo as follows:
Vendor: Location: Structure: Item: Quantity: Direct Unit Cost: Line Amount: Non ITC Claimable Usage %: 10000 Blue VAT 1000 (Bicycle) 10 1000 10000 (The system will calculate it.) 50
Calculate Structure Values. The system will calculate the VAT amount and will distribute 50% each in Amount loaded on Item and in ITC. Post the Purchase Credit Memo.

NAVIGATION: Pa History us r c h e Posted Credit Memos.
The system will create the following entry: Purchase A/C Purchase Tax A/C To Vendor A/C Cr. Cr. Dr. 10500 500 11000
VAT has been calculated by taking the values as follows: Base Value: VAT %: Non ITC Claimable Usage %: Tax Amount: Amount Loaded on Item: ITC: 10000 10 50 1000 500 500
We have given 50% usage, the system has allocated the Tax amount 50% each in Loaded on Item and ITC. If the non ITC claimable usage % is 0, then the whole Vat table purchase tax amount will be available for ITC. The system will create Detail Tax Entry. The user can view it by pressing Crlt+F8 (Zoom) keys.
In the above window Input Credit/Output Tax Amount field has the value as: 500 and Amount Loaded on Item field has the value as: 500. Note 1: The user can use purchase credit memo for fixed assets also. In this case deferment schedules will be reversed with negative values (Only the unsettled Deferment schedules will be reversed). Note 2: The user can also calculate retention limit through Purchase Credit Memo. Note 3: Calculation of VAT and retention limit can also be done with Applies to Doc and Copy document functions.
Note 4: All tax calculations from Purchase Credit Memo will be shown in negative in Detail Tax Entry.
Calculation of Output VAT

NAVIGATION: Sales & Marketing processing Order Orders
To create a sales order, fill the fields in Sales Order as follows:

Customer: Location: Structure: Item: Quantity: Unit Price: Line Amount: Calculate Structure Values. 10000 Blue VAT 1000 10 4000 40000 (The system will calculate it.)
The system will calculate the VAT amount according to the given VAT %. Post the Order as Ship and Invoice.

NAVIGATION: Sales & Marketing History Posted Invoices.
The system will create the following entry: Customer Sales Tax Sales A/C A/C A/C Dr. Cr. Cr. 44000 4000 40000.
VAT has been calculated by taking the values as follows: Base Value: VAT %: Tax Amount: Input Credit/Output Tax Amount: 40000 10 4000 4000.
The system will also create Detail Tax Entry. The user can view it by pressing Crlt+F8 (Zoom) keys.
In the above window Input Credit/Output Tax Amount field has the value as: 4000.
Note 1: Output VAT can be calculated for fixed assets also. Note 2: All ITC values in Details Tax Entry will be shown in negative. Output VAT can also be calculated through Sales Invoice. Note 3: The user can also calculate CST from sales Order/Invoice. In that case the customer state should be different from location state. The tax amount (CST) will also go in sales tax account.
Calculation of Output VAT in case of Standard Deduction
To create a sales order, fill the fields in Sales Order as follows:

Customer: Location: Structure: Item: Quantity: Unit Price: Line Amount: Standard Deduction: Calculate Structure Values. Post the order as Ship and Invoice. 10000 Blue VAT 1000 10 4000 40000 (The system will calculate it.) 20 (The system will populate the percentage as defined in the Tax Details Setup).

NAVIGATION: Sales & Marketing History Posted Invoices.
The system will create the following entry: Customer A/C Sales Tax A/C Sales A/C Dr. Cr. Cr. 43200 3200 40000.
VAT has been calculated by taking the values as follows: Base Value: VAT %: Standard Deduction: Tax Amount: Input Credit/Output Tax Amount: 40000 10 20. 3200 3200
Steps for the calculation of output tax in case of standard deduction: Step 1: Base amount: 40000, VAT%: 10%, and Standard Deduction%: 20. Step 2: First the system will calculate 20% on 40000 (40000*20%) = 8000 as standard deduction. Step 3: Standard deduction will be deducted from the base amount and will be (40000-8000) 32000. Step 4: The system will then calculate VAT 10% on 32000. Means final Tax amount =32000*10% = 3200. The system will also create Detail Tax Entry. The user can view it by pressing Crlt+F8 (Zoom) keys.
In the above window Input Credit/Output Tax Amount field has the value as: 3200. Note 1: Standard deduction can also be calculated for fixed assets. Note 2: The Values in detail tax entry will show in negative. Note 3: Standard Deduction tax amount calculation will be displayed on the sales line. This transaction can also be done through Sales Invoice.
Sales of Goods in case of Export or Deemed Export / VAT Exempted
Steps to be followed: Step 1: Place a check mark in Export or Deemed Export / VAT Exempted field in Customer card. Step 2: Create Sales Order/Invoice, select the customer and location. Step 3: Fill in the quantity with unit cost price. Step 4: Calculate Structure Values. Step 5: The system will not calculate any VAT because the Export or Deemed Export/VAT Exempted fields are checked in Customer Card. Step 6: The Posted entry will not reflect in any tax account. Step 7: The system will create normal entry: Customer A/C Dr. Sales A/C Cr. Note 1: VAT exempt and export or deemed export field will also be displayed in the sales header. This will come from the customer card.
Sales Credit Memo

NAVIGATION: Sales & Marketing Processing Order Credit Memos
To create a sales credit memo, fill the fields in Sales Credit Memo as follows:
Customer: Location: Structure: Item: Quantity: Unit Price: Line Amount: Standard Deduction: Calculate Structure Values. Post the Sales Credit Memo. 10000 Blue VAT 1000 10 4000 40000 (The system will calculate it.) 20 (The system will populate the percentage as defined in the Tax Details Setup).

NAVIGATION: Sales & Marketing History Posted Credit memos
The system will create the following entry: Customer A/C Sales Tax A/C Sales A/C Cr. Dr. Dr. 43200 3200 40000
VAT has been calculated by taking the values as follows: Base Value: 40000 VAT %: 10 Standard Deduction: 20 Tax Amount: 3200 Input Credit/Output Tax Amount: 3200 Steps for the calculation of output tax in case of standard deduction: Step 1: Base amount: 40000, VAT%: 10%, and Standard Deduction%: 20. Step 2: First the system will calculate 20% on 40000 (40000*20%) = 8000 as standard deduction. Step 3: Standard deduction will be deducted from the base amount and will be (40000-8000) 32000. Step 4: The system will then calculate VAT 10% on 32000. Means final Tax amount =32000*10% = 3200. The system will also create Detail Tax Entry. The user can view it by pressing Crlt+F8 (Zoom) keys.
In the above window Input Credit/Output Tax Amount field has the value as: 3200. Note 1: Sales Credit memo can be handled for fixed assets also. Note 2: All values in Details Tax Entry will show in positive.
VAT Adjustment
NAVIGATION:
Financial Managem G a g V A T V e el e a d a A n nL r l d x T t ee u e rd e d Adjustment
Field
VAT Entry No
Comments
Choose the VAT entry number from the lookup list for which adjustment is made
Following fields are populated with the VAT entry and are not editable:
Field
Posting Date
Comments
The posting date of the VAT entry being adjusted The document of the VAT entry being adjusted The document number of the VAT entry being adjusted The VAT amount of the VAT entry being adjusted
Document Type
Document No
VAT Amount IN
VAT Percentage IN
The VAT percentage of the VAT entry being adjusted The location of the VAT entry being adjusted The quantity of the VAT entry being
Original Location
Original Quantity
Field
Original Non ITC Claim Usage %
Comments
adjusted The non ITC claim usage percentage of the VAT entry being adjusted The input VAT credit of the VAT entry being adjusted The amount loaded on Item of the VAT entry being adjusted
Input Credit/Output Tax Amount
Amount Loaded on Item
VAT Adjustment Type: The Following adjustment options are displayed 1. Change in Usage: The user has to select the Change in Usage option if there is change in the usage and fill in the fields according to these guidelines:
Field
Quantity to be Adjusted
Comment
Enter the quantity to be adjusted for change in Non ITC Claimable usage %. Enter the actual usage %.
Non ITC Claimable Usage %
The Revised Input Credit/Output Tax Amount, Amount Loaded on Item and amount of adjustment are calculated and displayed in the respective fields
VAT Entry No. VAT Adjustment Type: Quantity: Non ITC Claimable Usage %
Choose the VAT entry number as 4224 from lookup list. Select the VAT adjustment type as Change in Usage Enter the quantity as10 75
The original entry has the following values: Quantity: 10 Base amount: 10000 VAT %: 10 Non ITC Claimable Usage %: 50 ITC: 500 Amount loaded on Item: 500 After entering Non-ITC claimable usage % as 75 in Adjustment journal the system will show 250 as amount of adjustment in Item field. 250 has been loaded on Item after Adjustments and previously it was available in ITC. Post the Adjustment Journal.
Viewing the Ledger entry from Posted Invoices
The system has created the following entry. Purchase A/C Dr. Purchase Tax A/C Cr. 250 250.
Detail Tax Entry:
In Detail Tax Entries, the system has reversed the original entry with original values and created a new entry with new values according to the done adjustments. Note 1: Change in usage can also be handled for fixed assets. The system will adjust only those deferments which are not settled. Note 2: The user can do partial quantity adjustments in adju n g st C e tt h i m y an een p U s. a g e Note 3: No need to enter the location code in case of change in usage in adjustment journal.
2. Branch Transfer: The user has to select the Branch Transfer option if there is branch transfer and fill in the fields according to these guidelines:
Field
Quantity to be Adjusted Location Code
Comment
Enter the transferred quantity. Enter the transferee location.
The Revised Input Credit/Output Tax Amount, Amount Loaded on Item and amount of adjustment are calculated, displayed in the respective fields Note : I. Use this adjustment type in both inter state and intra state branch transfer. II. Use this adjustment type when ever there is transfer from normal sales location to export sales.

VAT Entry No VAT Adjustment Type Quantity: Location Code: 4227 Branch Transfer 10 Green (We are handling Interstate Branch Transfer)
The original entry has the following values: Quantity: Base amount: VAT %: ITC: Location: 10 10000 10 1000 Blue
In State Setup, Branch Transfer Retention % is 5 %. We have entered the Location as Green in Adjustment Journal and branch t/f Retention as 5%. The system will calculate 5% on 10000. It means 500 will be loaded on Item. Post the Adjustment Journal.
Viewing the Ledger Entry from Posted Invoices
The system has created the following entry: Purchase A/C Purchase Tax A/C Dr. Cr. 500 500
Detail Tax Entry:
In Detail Tax Entry: The system will reverse the original entry with original values for the same location (Blue). Another entry will be done for the Adjustment in the Input Tax Credit for the same location (Blue) Last entry will be done for the new location (Green) without ITC and Amount Loaded on Inventory.
Note 1: Branch Transfer can also be handled for fixed assets. The system will adjust only those deferments which are not settled. Note 2: In case of Intra state branch transfer, the system will reverse the original values for old location and the new entry will be created for new location with ITC and Amount loaded on Item values. These types of transfers will be useful in transfers of items purchase for normal sales to export sales. Note 3: The user can do partial quantity adjustments in adju n h st B tt r my a e en p c Tf rr a n. s e
3. Lost or Destroyed: The user has to select the Lost or Destroyed option if there is loss or destruction and fill in the fields according to these guidelines:
Field
Comment
Enter the Lost or Destroyed quantity.
The Revised Input Credit/Output Tax Amount, Amount Loaded on Item and amount of adjustment are calculated, displayed in the respective fields
VAT Entry No.: VAT Adjustment Type: Quantity:
4231 Lost / Destroy 10
We have entered the quantity as 10 in Quantity field in Adjustment Journal. It means 10 quantities has been lost or destroyed. 1000 has been loaded on Item after Adjustments and previously it was available in ITC. Post the Adjustment Journal.
Viewing the Ledger Entry from Posted Invoices.
The system has created the following entry: Purchase A/C Purchase Tax A/C Dr. Cr. 1000 1000
Detail Tax Entry:
The system will reverse the original entries with values.
Note 1: Lost/Destroy can also be handled for fixed assets. The system will reverse only those deferments which are not settled. Note 2: The user can dr aam i s t h oi nd e amtB pl tj n d e e n au t iu t j n a t s s u yr q y t n t pa c Tf rr a n. s e 4. Non business consumption: The user has to select the Non business consumption option if there is Consumption and fill in the fields according to these guidelines:
Field
Comment
Enter the consumed quantity.
The Revised Input Credit/Output Tax Amount, Amount Loaded on Item and amount of adjustment are calculated, displayed in the respective fields Note: Enter the description of the adjustment in all the above cases of adjustment
VAT Entry No.: VAT Adjustment Type: Quantity:
4233 Non business consumption. 10
We have entered the quantity as 10 in Quantity field in Adjustment Journal. It means 10 quantities has been consumed. 1000 has been loaded on Item after Adjustments and previously it was available in ITC. .
Post the Adjustment Journal.
Viewing the Ledger Entry from Posted Invoices
System has created the following entry: Purchase A/C Purchase Tax A/C Dr. Cr. 1000 1000
Detail Tax Entry:
Note 1: Non business consumption can also be handled for fixed assets. The system will reverse only those deferments which are not settled. Note 2: The user can do partial quantity adjustments in adjustment type Non business consumption.
VAT Settlement
NAVIGATION: Financial Management General Ledger Added Tax Value VAT Settlement
Field
State Code
Comments
Select the state for which VAT settlement is to be done.
Starting Date
Enter the tax period starting date in this field. If the starting date is not equal to one day after the previous settlement ending date then an error message pops up which will define the starting date.
Ending Date
The systems displays the ending date taking the starting date and the tax period into consideration . The system will show in this field. Original
Type
Revision No
The system will generate the number at the time of revision. The user has to enter the document number before posting the Settlement form.
Document No.
Following fields are present at the line level:
Field Name
Total Out Put VAT
Description
Populated with the output VAT payable for the tax period
Remarks
This field is non editable and contains a drill down button which displays the entries This field is non editable and contains a drill down button which displays the entries This field is non editable and contains a drill down button which displays the entries This field is non editable and contains a drill down button
VAT Adjustment Amount
Populated with the adjustment amount for the tax period
Input Vat Credit ( Normal Sales)
Populated with the input VAT credit amount for sales which are not export sales Populated with the input VAT credit of capital goods which
VAT Receivable (Capital Goods)
Field Name
Description
can be claimed in the current tax period
Remarks
which displays the entries
Balance
Displays the balance of VAT payable after setting off the input VAT credit on normal sales, VAT adjustment VAT Receivable
This field is non editable
Carry Forward from Previous Period
Displays the balance amount of the excess Input VAT credit carried forward up to Last Tax Period The user can enter the Amount of Refund wished to Claimed
This field is non editable and contains a drill down button which displays the entries
Refund
This field is editable and contains validations for Amounts, which is more than the minimum amount of the carried forward amount of no of Specified period for refund from the starting date. Amount, which is more than the carried forward from previous period Displays Error Messages in Above Cases
Setoff against current VAT
The user can enter the Amount of wished to setoff against VAT payable
This field is editable and contains validations for: Amount, which is more than the VAT payable Amount, which is more than the Carry Forward from Previous Period less Refund Displays Error Messages in Above Cases This field is non editable
Carried Forward
Displays the balance amount of the excess Input VAT credit carried forward after reducing the Refund and Setoff against Current VAT
Field Name
VAT Payable
Description
Displays the balance VAT payable which is balance setoff against current VAT Displays the VAT payable amount if it is Negative
Remarks
Excess VAT for adjustment (Applicable if VAT Payable is Negative)
Refund
The user can enter the amount of refund wished to claimed
This field is editable and contains validations for Amount, which is more than the minimum amounts of the carried forward amount of no of Specified period for refund from the ending date. Amount, which is more than the Excess VAT for adjustment Displays Error Messages in Above Cases This field is editable and contains validations for: Amount, which is more than the CST payable Amount, which is more than the Excess VAT for adjustment less Refund Displays Error Messages in Above Cases This field is non editable
Setoff against CST Payable
The user can enter the Amount of wished to Setoff against CST payable
Carry forward
Displays the balance amount of the excess Input VAT credit carried forward less the Refund and Setoff against Current CST payable Populated with the CST Payable for the Tax Period
CST Payable
This field is non editable and contains a drill down button which displays the entries This field is non editable and
Input VAT Credit
Populated with the Input VAT
Field Name
(Exports Sales)
Description
Credit Amount for sales which not Export Sales The user can enter the Amount of Refund wished to Claimed
Remarks
contains a drill down button which displays the entries This field is editable and contains validation for Amount, which is more than the Input VAT Credit (Exports Sales) Displays Error Message in Above Cases This field is editable and contains validation for Amount, which is more than Input VAT Credit (Exports Sales) less Refund Displays Error Message in Above Cases This field is editable and contains validation for Amount, which is more than Input VAT Credit (Exports Sales) after reducing Refund and Setoff against VAT payable Displays Error Message in Above Cases This field is non editable
Refund
Setoff against VAT payable
Setoff against CST payable
Carry forward
Displays the balance amount of the excess Input VAT (Exports Sales) credit carried forward less the Refund , Set off Against VAT Payable Setoff against Current CST payable Displays the balance amount of the excess of VAT payable after Set off Against VAT Payable Setoff from Input VAT Credit (Exports Sales)
Net VAT Payable
Net CST Payable
Displays the balance amount of This field is non editable the excess of CST payable after Set off Against VAT Payable Setoff from Input VAT Credit (Exports Sales)
After making the adjustments in the Settlement form the user can post the Settlement form.
View the posted Ledger Entries

The system will transfer the purchase tax amount, sales tax amount, and Vat deferred amount to VAT Payable account. The system will create the G/L entries on the ending date of tax period.
If the user wants to do any alterations in the posted settlement form?

Open the same Tax Period Settlement form and click Undo post menu item in posting menu button. By clicking Undo post the system will create the copy of the Original Settlement form with revision number. This revised settlement is not editable. The user can do any alterations in the original one. Clicking Undo post, the system will reverse the original G/L entries with the same document number.
Alteration in Settlement form
Now we have adjusted the input VAT credit (export sales) amount 2000 with setoff against CST payable. In the previous settlement form it was equally setoff against VAT payable and CST payable. Post the Settlement form with new document number. Again view the posted ledger entries.
The system will create the new G/L entries according to the adjustment done in the Settlement form.
View the history of Settlement
Click the Settlement menu button and select the list menu item to view the history of settlement.
Fields Description: State code: Starting Date: Type: Revision No.: Net VAT payable Amount: Net CST payable Amount: Carried forward amount: Settlement: State will be displayed Starting date of the settlement It will show if settlement is Original or Revised. It shows the revision number. Net VAT payable after setoff. Net CST payable after setoff. Excess credit carried forward. True or false
Note 1: System will display the message for any new entries for period which has been already settled.
VAT Reporting
NAVIGATION: Financial Management General Ledgerp Reporting R tVAT es o r
Following reports are available in VAT:
Interstate Sales and Purchases

NAVIGATION: Financial Management General Ledgerp Reporting R tVAT es o r Interstate Sales and purchases
All Inter state purchase and sales can be viewed from this report.
Field
State Posting Date
Comment
Select the State. Period
The report can be previewed as following and printed using the respective buttons.
Intrastate Sales and Purchases

NAVIGATION: Financial Management General Ledger Reports Reporting VAT Intrastate Sales and Purchases
All intra state purchase and sales can be viewed from this report.
Field
State Posting Date
Comment
Select the state. Period
Purchase Book VAT

NAVIGATION: Financial Management General Ledger Reports Reporting VAT Purchase Book VAT
Field
State Posting Date
Comment
All inter-state and intra-state purchases can be viewed from this report. The report can be previewed as following and printed using the respective buttons.
Sales Book VAT

NAVIGATION: Financial Management General Ledger Reports Reporting VAT Sales Book VAT
Field
State Posting Date
Comment
All inter-state and intra-state purchases can be viewed from this report. The report can be previewed as following and printed using the respective buttons
VAT Settlement
NAVIGATION: Financial Management General Ledger Reports Reporting VAT VAT Settlement
Field
State Starting Date
Comment
Select the state. Enter the starting date
VAT Deferment
NAVIGATION: Financial Management General Ledger Reports Reporting VAT VAT Deferment
Field
State Starting Date Ending Date
Comment
Select the state. Enter the starting date Enter the ending date
VAT Credit Carried Forward

NAVIGATION: Financial Management General Ledger Reports Reporting VAT VAT Credit Carried Forward
Field
State
Comment
Select the state.
Viewing and Printing the Tax Invoice

NAVIGATION: Sales & Marketing t Pd i Hy s v i s o Ie o r to e c ns
Select the Print Tax Invoice on the print button following Tax Invoice is previewed and printed.
Appendix
ILLUSTRATIONS 1. VAT dealers with full Taxable Turnover (INTRA STATE SALES) and Purchases in the state
VAT dealer dealing in commodities which are taxable at 4% and 12.5% respectively under the provisions of the Act. The dealer is not dealing in non taxable goods, also buys goods which are taxed at 4% and 12.5% required for business. Sale and purchases are in the same state. The input VAT credit available and VAT payable for a tax period is illustrated below: PURCHASES ( INPUT) TURNOVER VAT PAID 1,00,000 2,00,000 4,000 25,000 29,000 SALES ( OUTPUT) TURNOVER 60,000 2,20,000 TOTAL VAT OUTPUT
RATE OF VAT 4% Goods 12.5% Goods
VAT PAYABLE 2,400 27,500 29,900
TOTAL INPUT VAT
INPUT VAT CREDIT
29,000
= Output VAT VAT Credit Input = Rs.29,900 Rs.29,000 = Rs.900 The Input Tax Credit of the total period will be setoff against the Output VAT of the period VAT PAYABLE
Following are the entries: For purchases of 4% goods in the above example Debit Credit Purchases A/c 100000 Purchase Tax 4% 4000 Vendor A/c 104000
For purchases of 12.5% goods in the above example Debit Credit Purchases A/c 200000 Purchase Tax 12.5% 25000 Vendor A/c For sales of 4% goods in the above example Debit Customer A/c 62400 Output VAT 4% Sales A/c 225000
Credit 2400 60000
For sales of 12.5% goods in the above example Debit Credit Customer A/c 247500 Output VAT 12.5% 27500 Sales A/c 220000
VAT Settlement at the end of tax period for the above transactions VAT Value Excluding VAT Output VAT Output VAT 4% 60000 2400 Output VAT 12.5% 220000 27500 Total Output VAT INPUT VAT CREDIT Purchase Tax 4% 100000 4000 Purchase Tax 12.5% 200000 25000 Total Input VAT Credit VAT Payable
29900
29000 900
2.
VAT dealers making both Taxable Turnover and Non Taxable Turnover (INTRA STATE SALES) and Purchases in the state
VAT dealer makes taxable turnover and non taxable turnover. The dealer buys and sells goods, which are taxable and non taxable in the same State. The input VAT credit available and VAT payable for a tax period is illustrated below: PURCHASES ( INPUT) RATE OF VAT 4% Goods 12.5% Goods Non Taxable Goods 4% goods used as common inputs for both taxable & non taxable goods 12.5% goods used in business common for both taxable and non taxable goods TOTAL INPUT VAT TURNOVER 1,00,000 1,00,000 50,000 10,000 VAT PAID 4,000 12,500 NIL 400 SALES ( OUTPUT) TURNOVER 1,20,000 1,80,000 1,00,000 NIL VAT PAYABLE 4,800 22,500 NIL NIL
20,000
2,500
NIL
NIL
19,400
TOTAL OUTPUT TAX Rs.3, 00,000 Rs.1, 00,000 Rs.4, 00,000
27,300
1. 2. 3.
Total taxable turnover for the period: Total non taxable turnover for the period: Total turnover for the period:
Calculation of Input VAT Credit 4% rate of goods 1. Input VAT Credit for Specific inputs 2. Input VAT Credit for Common Inputs 2500x300000/400000 12.5% rate goods Rs 4,000 400x300000/400000 RS 18,675 = Rs 12,500 Rs 1875 Output VAT
Rs 300 TOTAL INPUT VAT CREDIT VAT PAYABLE VAT Credit Input = =
Rs.27, 300 675 Rs.18, Rs.8, 625
The Input VAT Credit on the common inputs used in Taxable and non Taxable Turnover will be equal to the result of: input VAT x Taxable Turnover / Total Turnover
4. VAT dealers having Inter State Purchases

VAT dealer makes taxable turnover and non taxable turnover. The dealer buys and sell goods, which are taxable and non taxable. Purchases are both intra state and inter state but the sales are intra state only. The input Vat credit available and Vat payable for a tax period are illustrated below: PURCHASES ( INPUT) RATE OF VAT TURNOVE VAT/CST R PAID 1,00,000 1,00,000 50,000 10,000 4,000 12,500 NIL 400 SALES ( OUTPUT) TURNOVER VAT PAYAB LE 4,800 22,500 NIL NIL
4% Goods 12.5% Goods Non Taxable Goods 4% goods used as common inputs for both taxable & non Taxable goods Inter State TOTAL INPUT VAT
1,20,000 1,80,000 1,00,000 NIL
20,000
800 ( CST) 16900
NIL TOTAL VAT T
NIL OUTPUT 27,300
1. 2. 3.
Total taxable turnover for the Period Total non taxable turnover for the Period Total turnover for the period
: : :
Rs.3, 00,000 Rs.1, 00,000 Rs.4, 00,000
Calculation of Input Vat Credit 4% rate of goods rate goods 1. Input Vat Credit for Specific inputs Rs 4,000 Rs 12,500 2. Input Vat Credit for Common Inputs 400x300000/400000 Rs 300 TOTAL INPUT VAT CREDIT RS 16,800 VAT PAYABLE = Output Vat Vat Credit Input = Rs.27, 300 800 Rs.16, = Rs.10, 500 12.5%
1. The Input Vat Credit on the common inputs purchased in same state, used in Taxable and Non Taxable Turnover will be equal to the result of: Input Vat x Taxable Turnover / Total Turnover 2. There is no input Vat credit on the goods purchased from other state.
VAT dealers having Inter state Purchases and Sales

VAT dealer makes taxable turnover and non taxable turnover. The dealer buys and sells goods, which are taxable and non taxable. The purchases and sales both are Intra-state and inter-state. The input VAT credit available and VAT payable for a tax period can be illustrated below: PURCHASES ( INPUT) RATE OF VAT TURNOVER VAT/CST PAID 4% Goods 12.5% Goods Non Taxable Goods 4% goods used as common inputs for both taxable & non Taxable goods Inter State 1,00,000 1,00,000 50,000 10,000 4,000 12,500 NIL 400 1,20,000 1,80,000 1,00,000 NIL SALES ( OUTPUT) TURNOVER VAT/CST PAYABLE 4,800 22,500 NIL NIL
20,000
800 (CST)
1,00,000
4,000(CST)
TOTAL INPUT VAT
16900
TOTAL OUTPUT 27,300 VAT
1. 2. 3.
Total taxable turnover for the Period Total non taxable turnover for the Period Total turnover for the period
: : :
Rs.4, 00,000 Rs.1, 00,000 Rs.5, 00,000
Calculation of Input VAT Credit 4% rate of goods 12.5% rate goods
1. Input VAT Credit for specific inputs Rs 4,000 Rs 12,500 2. Input VAT Credit for common Inputs 400x400000/500000 Rs 320
TOTAL INPUT VAT CREDIT VAT PAYABLE = = = RS 16,820 Output VAT VAT Credit Input Rs.27300 820 Rs.16, Rs.10480
1.
2. 3. 4.
CST PAYABLE = Rs. 4000 The Input VAT Credit on the common inputs purchased in same state, used in taxable and non taxable turnover will be equal to the result of Input VAT x Taxable Turnover / Total Turnover There is no Input VAT Credit on the goods purchased from other state. The Input VAT Credit can be setoff against CST payable The CST sale are treated as zero rated sale with respect to State VAT Act and included in the Taxable turnover
6.
Capital Goods and Input VAT Credit

1. VAT dealer purchases machinery 1 that is used in the production / process of the Taxable Turnover. The State has determined that the input VAT credit on capital goods can be claimed over 20 tax periods. The Input VAT Credit available for setoff in same period and input VAT credit deferred is illustrated below. Purchase Price of Machinery VAT @ 4% Input VAT Credit Rs 40,000 Input VAT Credit claimable in Current Tax Period Input VAT Credit Deferred The entry will be: Debit 1000000 40000 Rs 10, 00,000 Rs 40,000 Rs 2000 Rs 38000
Credit
Machin Machinery A/c VAT Deferred A/c Vendor A/c Entry at end of the tax period:
1040000
VAT Settlement A/c VAT Deferred A/c 2.
Debit 2000
Credit 2000
VAT dealer purchases machinery 2 used in the production / process of the Taxable Turnover and Non Taxable Turnover. The State has determined that the input VAT credit on capital goods can be claimed over 20 tax periods. VAT dealer estimated that the machinery will be used to produce 75% taxable and 25% non taxable turnover. The input VAT credit available for setoff in same period and input VAT credit deferred is illustrated below.
Purchase Price of Machinery VAT @ 4% Input VAT Credit is 40000 x = 30000 Input VAT Credit claimable in Current Tax Period Input VAT Credit Deferred
Rs 10,00,0000 Rs 40,000 Rs 1500 Rs 28000
VAT deferment schedule of capital goods considering above two transactions Capital Good Machinery 1 Machinery 2 Total Tax Period 1 2000 1500 3500 Tax Period 2 2000 1500 3500 Tax Period 3 2000 1500 3500 Tax Period 3 2000 1500 3500
7.
Branch Transfer Out Of The State
VAT dealer transfers the goods purchased in the state to the branch situated in other state. Purchase price of goods: Rs 10,000 Vat @ 10%: Rs 1,000 The Excess of Input Vat in excess of 4% that is 10-4 = 6% Input Vat Credit available on branch transfer is Rs 600
8.
VAT Dealer in Exports
VAT dealer making the export sales using the purchases in the state Purchases VAT Paid/ Payable Export Sales Input VAT Credit Rs 5, 00,000 Rs 40,000 Rs 8, 00,000 Rs 40,000
1. The export sales are treated as zero rated sale with respect to State VAT Act and included in the Taxable turnover 2. The Input VAT Credit Can be Used to Setoff of any Output VAT Payable, the balance of input credit not claimed will refunded. 3. The same Illustration can be used for Deemed Sales and supply to EOU.
9. Dealers in Composition Scheme

VAT dealer opted for the composition scheme Purchases during the Tax Period VAT Paid Sales Input VAT Credit Out VAT Payable (Composition Rate @ 1%) Rs 5,00,0000 Rs 40,000 Rs 10, 00,000 0 Rs 10,000
1. 2.
The Input VAT credit is not available as the dealer opted for the composition Scheme Output VAT payable will be calculated on the total sales of the period using the composition rate.
10.
Dealers Executing The Composite Works Contracts

1. VAT Dealer engaged in executing the composite works contract maintains proper records of labour & services The Turnover of the works contract of the tax Period Rs 5, 00,000 Charges towards labour, services and other charges Rs 2, 00,000 Taxable Turnover of Works Contracts Rs 3, 00,000 Purchases during the tax period Rs 8, 00,000 Input VAT Paid/ Payable Rs 32,000 Input Tax Credit (Prescribed 90 % for claiming input VAT) Rs 28,800 Out VAT Rs 37,500 Output VAT Payable RS 8,700 I. There is a prescribed percentage in some states, the percentage of the input VAT which is allowed as input VAT credit VAT dealer engaged in executing the composite works contract not maintaining proper records of labour & services
II.
2. VAT Dealer engaged in executing the composite works contract does not maintain proper records of labour and services The turnover of the works contract of the tax period Purchases during the tax period Input VAT Paid/ Payable Calculation of taxable turnove Gross Turnover Standard Deduction (@ 25%) Taxable Turnover Input Tax Credit (Prescribed 90% of Input VAT ) Out VAT Output VAT Payable Rs 5, 00,000 Rs 8, 00,000 Rs 32,000
Rs 5, 00,000 Rs 1, 25,000 Rs 3, 75,000 Rs 28,800 Rs 46,875 RS 18,075
There is a prescribed percentage in some states, the percentage of the Input VAT which is allowed as input VAT credit. The standard deduction in this case of composite works contract is 25%, the Standard Deduction depends on the type of work and it differs from state to state.
11
Dealer engaged Lease Transactions
VAT dealer engaged in lease transactions. Machinery worth is given on lease with monthly lease of Rs 10000. VAT dealer received three lease rentals during the tax period. Taxable Turnover for the period lease transactions Rs 30000 Output VAT Payable (Tax Rate 12.5%) Rs 3750
12
Debit notes/Credit notes

VAT dealer has purchased goods worth RS 1, 00,000 and the Input VAT @ 10% was Rs 10000 The Dealer has been issued a debit note of Rs 11,000 (Including the Input VAT of Rs 1,000) The good should be increased with Rs 10,000 and input Tax credit with Rs s cost 1,000 with following entry
Debit Purchases/Fixed Asset 10000 Purchase Tax/ VAT Receivable / 1000 VAT Deferred Vendor Account
Credit
11000
Incase of Credit notes the above Entry will be reversed 1. The Time limit for Claiming the Input Tax Credit on Debit notes is fixed by the State.
13.
Adjustments in case of Changes in the usage

VAT dealer has purchased goods worth RS 1, 00,000 and the Input VAT @ 10% was Rs 10000 The dealer expected the usage of the goods in taxable turnover and non taxable turnover as 50% and 50%, thereon claimed Rs 5000 ( 50% of 1000) as tax credit At the end of tax period the actual usage was 60% to taxable turnover and 40% for non taxable turnover The eligible amount of input tax credit is Rs 6000, amount of input tax credit should be increased with Rs 1000 and decrease the cost of goods with Rs 1000
Debit Purchase Tax/ VAT Receivable/ 1000 VAT Deferred Purchases/Fixed Asset
Credit
1000
Incase of decrease in tax credit the above entry is reversed assuming the eligible Input Tax Credit is Rs 4000
Note: In case there is no balance respective in the Purchase Tax/ VAT Receivable/ VAT Deferred the amount will be transferred to VAT Payable Account
14
Adjustments in Tax Credit incase of Loss or Destructions

VAT dealer has purchased goods worth RS 1, 00,000 and the Input VAT @ 10% was Rs 10000 The VAT dealer claimed the total input tax Rs 10000 as input tax credit and subsequently the goods were destroyed/ lost. Dealer has to reverse the input tax credit claimed.
Debit Loss due to goods Loss/ 10000 Destroyed Purchase Tax/ VAT Receivable/VAT Deferred
Credit
10000
Note: In case there is no balance respective in the Purchase Tax/ VAT Receivable/ VAT Deferred the amount will be transferred to VAT Payable Account.
Microsoft Business Solutions Navision 4.0- Statement of TDS.
Table of Contents
Tax Deduction at Source ................................................................................................. 3 Statement of TDS ............................................................................................................ 3 Creation of new account in Chart of Accounts ................................................................. 5 Number Series setup ........................................................................................................ 5 Setup for Tax Deduction at Source .................................................................................. 6 Accounting Period ....................................................................................................... 7 T.A.N. Nos. ............................................................................................................... 10 Field Description: ...................................................................................................... 11 TDS groups ............................................................................................................... 11 TDS Nature of Deductions (NOD) ............................................................................. 12 TDS Assesse Codes ................................................................................................... 13 TDS details ................................................................................................................ 14 TDS party master (Parties)......................................................................................... 15 Concessional codes .................................................................................................... 16 TDS NOD lines ......................................................................................................... 16 Correction Type setup ............................................................................................... 18 Company level setup ..................................................................................................... 19 General ledger setup ...................................................................................................... 20 Vendor card................................................................................................................... 21 Transactions .................................................................................................................. 23 Vendor transactions ................................................................................................... 24 Direct invoices using general journal ......................................................................... 24 Direct invoices using invoices ................................................................................... 26 PO based invoices using orders.................................................................................. 27 Advance payment using payment journal................................................................... 29 Payment of TDS amount to government .................................................................... 30 TDS adjustment Journal ............................................................................................ 32 TDS Update Register ................................................................................................. 33 Challan Register: ....................................................................................................... 34 Generate Certificates Numbers. ............................................................................. 36 Generate Form 26Q ................................................................................................... 39 Generate Form 27Q ................................................................................................... 42 Generate eTDS .......................................................................................................... 45 Correction in Statement of TDS: ................................................................................... 50 Generate Revised 26Q / 27Q ..................................................................................... 56 Generate Revised eTDS................................................................................................. 59 Example 1: .................................................................................................................... 63
Tax Deduction at Source

Tax deduction at source (TDS) is one of the methods of collecting income tax from the Assessee. Such collection of tax is effected at the source when any specified type of income arises or accrues to any one. The Income-Tax Act enjoins on the payer of such income to deduct a stipulated percentage by way of income tax and pay only the balance amount to the recipient. The tax, so deducted at source by the payer has to be deposited to the credit of Central Government within the specified time. Such deduction is deemed to be payment of income tax by the recipient at the time of his assessment. Incomes, which are subjected to T.D.S: Salary Interest Dividend Interest on securities Winnings from lottery Horse races Commission and brokerage Rent Fees for professional and technical services Payments to non-residents When will Tax be deducted? The Income Tax Act specifies that tax deduction will occur on crediting a persons account or, on payment, whichever is earlier.
Statement of TDS
The person, deducting tax at source will submit a quarterly statement to the income tax authority (or the person authorized by such authority) in respect of tax deducted at source on or after April 1, 2005. Following Forms (Quarterly statements) are used for this purpose. Form 26Q: This Form is used for TDS other than salary transaction to residents. Form 27Q: This Form is used for TDS other than salary transaction to nonresidents. Quarterly returns should be submitted within 15 days from the end of each quarter. The Income Tax Authority will in turn furnish an annual statement of tax deducted to the assessee in Form No. 27 AS.
As per the Income Tax laws, entities (both corporate and non-corporate deductors) making payments to third parties (deductees) are required to deduct tax at source (Tax deducted at Source TDS) from these payments and deposit the same at any of the designated branches of authorized banks. They should also furnish TDS returns containing details of deductees and bank where TDS amount is deposited with the income tax department (ITD). With effect from 01.04.2005 every deductor must file Quarterly Statement of TDS under Form 26Q and Form 27Q (for Non-Residents). Deductor furnishing returns in electronic form (e-TDS return) have to furnish a control chart Form 27 A in physical form along with the e-TDS return.
Payment Form No. 26Q 26Q 26Q 26Q
other than salary to a resident: Description For the quarter ending ,June 30 For the quarter ending, September,30 For the Quarter ending ,December,31 For the quarter ending ,March 31
Due Date July, 15 October,15 January,15 June, 15
Payment Form No. 27Q 27Q 27Q 27Q
other than salary to a Non-resident: Description For the quarter ending ,June 30 For the quarter ending, September,30 For the Quarter ending ,December,31 For the quarter ending ,March 31
Due Date July, 14, October, 14 January, 14 June, 14
A user needs to define certain basic setups to manage the TDS transactions in Navision 4.0. Define setups at following levels. Creation of new account in Chart of Accounts Number Series setup Setup for Tax Deduction at Source. Setup on Vendor card. Company Information setup General Ledger setup
Creation of new account in Chart of Accounts

The user needs to create balance sheet liability accounts for TDS transactions. The user has to create one account for each TDS group under which company deducts tax. NAVIGATION: FINANCIAL MANAGEMENT GENERAL LEDGER CHART OF ACCOUNTS. Create the necessary GL accounts for all the TDS Payables accounts.
For example, TDS Payable Account for Rent is 5930. TDS Payable Account for Professional Services is 5940. TDS Payable for Contractors is 5941
Number Series setup

TDS certificates are reports generated in Navision and issued to vendors. The user needs to create separate number series for TDS Certificates. NAVIGATION: ADMINISTRATION APPLICATION SETUP GENERAL NO. SERIES. The Number Series you create will be then linked to each TDS group.
Setup for Tax Deduction at Source

The user has to define the setups for TDS in Financial Management Module. Various setups for TDS are: Accounting Period T.A.N Nos. Groups Nature of Deductions Assessee Code Details Parties Concessional Codes NOD Lines Correction Codes
Accounting Period
TDS Accounting Periods are required to generate TDS transactions. The user needs to specify TDS Accounting Periods while filing Form 26Q / 27Q. The system will show an error, if the TDS Accounting Period is not setup for the transaction date.
Navigation: Financial Management Setup Tax deducted at source Accounting Period.
Field-Description Number: This field shows the serial number of account period, and is generated by the system. Starting Date & Ending Date: To create the Accounting periods for TDS, click Create Year button. Closed: Once the annual report is filed with the government, the user can close the accounting period of TDS. To close the accounting periods of TDS, click Close Year button. Once the year is closed, the Closed field gets marked true.
To create the Accounting Periods for TDS as shown in the window, click Create Year button.
Field Description: Starting Date: Define the starting date for the TDS Accounting year. Ending Date: Define the ending date for the TDS Accounting year.
Create Quarter The user can create the Quarters for the selected Financial Year by clicking, Create Quarter.
On clicking Create Quarter, TDS Period setup window will be opened as shown below.
The user can define the Quarters for selected financial year in this window.
Field Description Quarter: Define the code for the Quarter. Starting Date: Define the Starting Date of the Quarter. Ending Date: Define the Ending Date of the Quarter The system will use this setup, at the time of filing of eTDS and revised eTDS for a specific Quarter.
T.A.N. Nos.
Tax Deduction Account numbers allotted to a company may be more than one depending on the number of branch locations from which the company files its resources. You need to capture all the account numbers, allotted to a company.
Navigation: Financial Management Setup Tax Deducted At source T.A.N. Nos.
Field Description: Code: Define the T.A.N. Numbers in this field. Description: Type the description of the Code.
TDS groups
Navigation: Financial Management SetupTax Deducted at Source GROUPS.
Field Description: TDS Group: TDS Group defines the nature of transaction for which TDS is applicable. Select the TDS Groups from the drop down list. Effective Date: Specify the effective date from which the TDS threshold will be applicable. TDS Section: Select the TDS section applicable as per the Income Tax Act, 1961 from the drop down list. TDS Threshold Amount: Define the threshold limit for each TDS Group. Deduct TDS only if, the total transaction with the assessee, exceeds the threshold limit in the financial year. Surcharge Threshold Amount: Define the surcharge threshold limit for each TDS Group. Deduct Surcharge only if, the total transaction with the assessee exceeds the threshold limit in the financial year. Per Contract Value: Define the Per Contract Value for each TDS Group, where it is applicable. TDS will be deducted only if, the total transaction with the assessee exceeds the per contract value in a single transaction of threshold amount in a financial year. Non-Resident Payments: Place a check mark here if, the relevant group deals with nonresidents. TDS Account: Select the TDS Payable account from the Chart of Accounts. No. Series: Attach a Number Series to the TDS Group for the auto generation of TDS Certificate Number for a particular TDS Group. Define the TDS Group and Number Series along with the effective date separately for each Financial Year. The number generated, will be useful in keeping a control over Form 16A Certificate.
TDS Nature of Deductions (NOD)

TDS Nature of Deductions are more specific to the TDS groups defined above. Nature of Deduction (NOD)s are different services on which TDS is applicable. Specify the rates of tax deduction against each TDS NOD in TDS details form.
Navigation: Financial Management Setup Tax Deducted at source Nature of Deductions
Field Description: Code: Define the NOD code in this field. Description: Enter the description of the Nature of Deduction (Service). TDS Group: Select the TDS Group from the drop down list to which the particular nature of deduction belongs. For example, NOD Advertisement, Contractors & SubContractors fall under the TDS Group Contractor. Category: Classify NOD Advertisement, Contractors, and Sub-Contractors by category A, C, S respectively when filing of return under Section 26C.
TDS Assesse Codes

Income Tax Act 1961 defines 'Assesse' as a person by whom any tax or any other sum of money is payable under this Act. The rates of TDS are different for different types of Assesse, hence you need to classify them here.
Navigation: Financial Management SetupTax Deducted at Source Assesse Codes Define the various assesses coming under the TDS purview.
Code: Define the Assesses Code here. For example IND, COM. Description: Type the Description of the Assesses Type here. For example Individual, Company Type: Select the Assesse Type as Company or Others from the drop down list.
TDS details
Define the TDS rates for each NOD and assessee type in the TDS details forms. The rates of tax deduction may vary for each financial year Navigation: Financial Management SetupTax Deducted at Source Details
Field Description: TDS Nature of Deductions: Select the Nature of Deduction from the look up button. TDS Assessee Code: Select the Assessee Code. TDS Group: TDS Group will be defaulted automatically depending on the NOD setup. Effective Date: Specify the effective date from which the TDS rate becomes applicable. Concessional Code: Select the code if the rate is concessional. TDS %: Define the base TDS rate here. Surcharge %: Specify the surcharge rate, if applicable, which is computed on the TDS Amount eCess %: Specify the eCess, if applicable. As per the rules, eCess computation is on the aggregate of TDS inclusive of surcharge.
TDS party master (Parties)

TDS parties are one time parties or vendors, which are not part of our regular vendor master. Navigation: Financial Management SetupTax Deducted at Source Parties
Field Description: Code: Define the Party Code.
Description: Enter the name of the Party. Address, Address2: Enter the Partys Address. State: Enter the name of the state. Postal Code: Enter the relevant Postal code here PAN No: Enter the Permanent Account Number of the Party. PAN Reference No.: If the PAN Number is not available, enter the PAN Reference Number in this field.
Concessional codes
Define concessional codes for cases authorized for concessional rates exclusively by the government. You may give concessional rates for these codes in TDS details. Navigation: Financial Management SetupTax Deducted at Source Concessional Codes .
Field Description: Code: Define the Concessional code here. Description: Enter the description of the Concessional Code here.
TDS NOD lines
Define NOD lines for each Vendor / Customer and Party that is liable to Tax deduction at Source. Navigation: Financial Management SetupTax Deducted at Source NOD Lines This is master to link the Vendor / Customer / Party with various NODs so that NOD linked to the Vendor / Customer / Party is available for TDS transactions. Attach one or more NODs to a Vendor / Customer / Party.
Field Description: Type: Select the Type from Vendor / Customer / Party from the drop down list. No: Select the Vendor / Customer / Party number. Assessee Code: Select the Assesse Code from the lookup list. Nature of Deduction: Select the NOD, depending on the kind of services provided by Vendor / Customer. Concessional Code: Specify a concessional code if a concessional rate is applicable. Concessional Form No.: Enter the Concessional Form Number of Vendor / Customer / Party.
Monthly Certificate: Check this field to generate a certificate every month. Leave this field blank to generate an annual certificate. Threshold overlook: If user wants to deduct TDS even though the threshold limit is not crossed for the customer then he has to check mark the threshold overlook field. Surcharge overlook: If user wants to deduct surcharge even though the surcharge threshold limit is not crossed for the customer then he has to check mark Surcharge overlook field.
Correction Type setup

Under Financial Management Setup TDS Correction Codes
Code: - Define Codes of different types of corrections that can be done at the time of revised returns. Description: - Type the details of Correction Codes. Sorting Order: - Define the sorting order of the correction codes. The system will use the sorting order for corrections defined in the setup to file the revised e-TDS returns. Correction statements (batches) in a multiple batch correction statement have to necessarily be in the sequence given below: C1, C5, C2, C3, C9
Company level setup

Administration Application Setup General Company Information.
Enter basic information about the company, such as the name, addresses, post code, state, country, std code/phone number etc.
The user has to define PAN, TAN, Circle, Ward, Assessing Officer details in Company Information Setup. TAN No: TAN number will be selected from the TAN master. Assessing officer number
This field will accept alphanumeric characters. Circle number This field will accept alphanumeric characters. Ward number This field will accept alphanumeric characters. Note: It is mandatory to enter the TAN Number, since all TDS entries are generated based on this number.
Company Status: Define the status of the company as Public Limited/Private Limited/Government or Others.
General ledger setup

Administration Application Setup Financial Management General Ledger Setup
TDS Rounding Precision: The field defines the size of the interval that will be used for rounding TDS amounts. The field has a default value of 1.00, which means all the components of TDS (viz. TDS amount, eCess amount, Surcharge Amount etc) will be rounded off to whole numbers individually. TDS Rounding Type: Here you can specify whether TDS amount will be rounded up or down or nearest. The program uses this information together with the interval for rounding.
Vendor card
Financial Management Payables VendorTax Information
P.A.N. No: For deduction of TDS from Vendor, PAN numbers for each vendor is captured in the Vendor Card. Vendors PAN Number has to be quoted in Annexure of Statement of TDS and Quarterly return. PAN Status: Select PANAPPLIED/ PANINVALID/ PANNOTAVBL to define the status of P.A.N. Number. P.A.N. Reference No: The user can enter PAN Reference Number, if PAN is applied by the Vendor.
State:
Financial ManagementSetupSales TaxStates
Code: Define the Code for each state. Description: Type the description for each state code. State code for eTDS: Define the state code, to be used for e-TDS filing with the tax authority.
Transactions
TDS functionality is available on the following: 1. General Journal. 2. Purchase Invoice. 3. Purchase Order. 4. Payment Journal. 5. Purchase Journal The following fields are available on the Purchase Order, Purchase Invoice, General Journal, Payment Journal for TDS calculations. TDS Party Type: Select the party type from the drop down list. TDS Party: Select the Vendor / Customer / Party Number from the list. TDS Assessee Code: The assessee code is defaulted automatically from the NOD Party master. TDS Nature of Deduction: Select the Nature of Deduction on which TDS is to be computed. TDS%: The TDS rate is defaulted automatically from TDS Details Master based on the combination of Nature of Deduction and Assessee Code.
TDS Amount: The TDS Amount is computed automatically by the system. Surcharge %: The Surcharge rate is defaulted automatically from TDS Details Master, based on the combination of nature of deduction and assessee code. Surcharge Amount: The Surcharge Amount is computed automatically by the system. TDS Amount including Surcharge: This field displays the total of TDS and Surcharge. eCess %: The eCess rate is defaulted automatically from TDS Details Master based on the combination of nature of deduction and assessee code. eCess on TDS Amount: The eCess Amount is computed automatically by the system. Total TDS Including eCess: This field displays the total amount of TDS to be deducted for the transaction. When you select the TDS Nature of Deduction from the look up button TDS Rate is defaulted automatically from TDS Details Master, based on the combination of nature of deduction and Assesses Code. The other automated fields on a transaction are TDS Amount Surcharge % Surcharge Amount: TDS Amount including Surcharge Education Cess eCess %. eCess on TDS Amount: Total TDS Including eCess
Vendor transactions Direct invoices using general journal

Tax is deducted on Vendor Invoices against which no advance payment has been received. When you make invoice transactions you will make a few additional entries, apart from those you enter regularly, while making an Invoice. Navigation: Financial Management General Ledger General Journals
Enter the Posting Date Select Document Type as Invoice Enter the External Document No as Ven Select TDS Party Type as Vendor Select the TDS Party Do not Select Account Type and Account No as these are automatically populated Select TDS Nature of Deduction as CONT Select the T.A.N No Enter Amount Enter Balancing Account The following fields are automated from the setups predefined TDS Assesse Code TDS % TDS Amount: Surcharge %: Surcharge Amount: TDS Amount including Surcharge:. eCess % eCess on TDS Amount: Total TDS Including eCess Post the Journal
While making Invoices using General Journal / Purchase Journal, make sure that the Document Type is selected as Invoice and the Invoice Amount is denoted with a negative (-) sign, as the vendor has to be credited with the amount.
Direct invoices using invoices

Tax is deducted on Vendor Invoices against which no advance payment has been received. While making invoice transactions you will make a few additional entries apart from the regular entries. Navigation: Financial Management Payables Invoices
Select Buy from Vendor No Enter Posting Date Enter the Vendor Invoice No On the shipping tab select Location Code On the Lines Select account Type G/L account. Select No. Enter Quantity Select TDS Nature of Deduction Enter Direct Unit Cost Excl. VAT To compute the TDS value, on Functions menu button, click Calculate TDS.
The following fields are automated from the setups predefined TDS Assesse Code TDS % TDS Amount: Surcharge %: Surcharge Amount: TDS Amount including Surcharge:. eCess % on TDS: eCess on TDS Amount: Total TDS Including eCess: Post the Invoice.
PO based invoices using orders

Tax is deducted on Vendor Purchase Orders against which, no advance payment has been received. When you make a PO, you will make a few additional entries apart from the regular entries. Navigation: Purchase Planning Orders
Select Buy from Vendor No. Enter Posting Date Enter the Vendor Invoice No On the Shipping tab select Location Code On the Lines Select account Type G/L account. Select Account No. Enter Quantity Select TDS Nature of Deduction Enter Direct Unit Cost Excl. VAT To compute the TDS value, on Functions menu button, click Calculate TDS. The following fields are automated from the setups predefined: TDS Assesse Code: TDS %: TDS Amount: Surcharge %: Surcharge Amount: TDS Amount including Surcharge. eCess % on TDS Amount: eCess on TDS Amount: Total TDS Including eCess: Release and Post the PO.
Advance payment using payment journal

Tax is deducted on Vendor Advance Payment. When you make an advance payment you will make a few additional entries apart from the regular entries Navigation: Financial Management Payables Payment Journal
Select Document Type as Payment Enter Document no Select TDS Party Type as Vendor Select the TDS Party Do not Select Account Type and Account No as these are automatically populated. Enter the External Document No Select TDS Nature of deduction Select the T.A.N No from the look up button Enter Amount The following fields are automated from the setups predefined TDS Assesse Code: TDS %: TDS Amount: Surcharge %: Surcharge Amount:
TDS Amount including Surcharge:. eCess %: eCess on TDS Amount: Total TDS Including eCess: Now Post the Journal.
Payment of TDS amount to government

The TDS that you have deducted on various transactions described above has to be finally deposited with the government. Payment of TDS deducted can be done through General Journal in General Ledger Module Navigation: Financial Management General Ledger General Journal Functions Pay TDS
On Functions menu button, click Pay and then select TDS. A form opens that will show all the TDS entries.
Select the field or fields on which the filters need to be put. The form will show the TDS entries for the selected filters only Select the entries for which TDS amount needs to be paid. Click Pay button of the screen, so that the total of the selected entries is transferred to the General Journal. Post the journal.
Navigation: Financial Management General Ledger Periodic Activity Tax Deduction at Source.
TDS adjustment Journal

Adjustment Journals are used for correcting the TDS amount that is already deducted but not yet paid to the government
Navigation: Financial Management General Ledger Periodic Activities Tax deducted at source TDS Adjustment Journal
Click look up button of the Transaction No field on the header. Select the Transaction you have generated for TDS Parties or any other vendor. Change the details to correct the transaction. That is you can increase or decrease the TDS rate, deducted and the adjustments would be made accordingly. Post the Journal. The revised TDS Amount is now updated in the relevant GL accounts for TDS Payable and Vendor Account.
TDS Update Register

TDS Update Register is maintained to keep track of all the TDS payments made to the government with relevant Challan Details. The Challan Number, Challan Date, and Bank Name are updated using this functionality for each transaction to be printed on TDS certificate. Navigation: Financial Management General Ledger Periodic Activities Tax Deduction at source Update TDS Register
On Functions menu button, click Update Challan Details. The user can give the Challan Details in the window, given below.
Challan Register:
A form is created under Financial Management / Periodic Activities / TDS / Challan Register
The user can update Challan Register for the selected Challan Detail. On Register menu button, click Update Challan Register. System will open a new form and allow to enter Interest Amount, Others, and Paid by book entry fields for the selected Challan Number.
If the user other than govt. organization tries to checkmark Paid by Book Entry field the system will give following error.
Generate Certificates Numbers.

TDS Certificate Number is used to generate the Certificate Number for the Certificates to be issued to the Vendors for the TDS deducted and paid on transaction of various TDS Groups. Navigation: Financial Management General Ledger Periodic Activities Tax Deduction at Source Generate Certificate Nos.
On Functions menu button, click Generate Certificate Nos. This will open a form on which the filters have to be entered to generate certificate numbers for Vendors / Customer / Parties
Party Type: The type of the Party is to be selected here. The various Party Types are Vendor, Customer, and Party. Party: Select the individual Vendor / Customer / Party. TDS Group: Specify the TDS Group. Start Date: Specify the effective date from which the TDS certificates are to be generated. If monthly certificates are to be generated, specify the first day of the month as Start Date. In case of yearly certificate specify 1st April (01/04/year) as Start Date. End Date: Specify the end date to which the TDS certificates are to be generated. If monthly certificates are to be generated, specify the last day of the month as End Date. In case of yearly certificate specify 31st March (31/03/year) as End Date. Monthly Certificate: Place a check mark in this field, if generating Monthly Certificate. The certificate will be generated based on the above specified filters. The corresponding TDS entries are also updated with the Certificate No. and Certificate Dates respectively. To generate Form 16A, click on Functions menu button TDS 16A.
Generate Form 26Q
Navigation: Financial Management General Ledger Periodic Activities Tax Deduction at Source Generate form 26Q.
Use this option to generate form 26Q in print format.
Fields Required: 1. T.A.N Location: An existing TAN Location is selected here for which the Report 26Q will be generated. 2. Report Frequency: Choose Quarter (Quarter 1 or Quarter 2, or Quarter 3 or Quarter 4) from the drop down option. 3. Choose Financial Year: Define Starting Year and End Year. Example: For Financial Year 2005 -2006, starting year is 2005 and ending year is 2006. 4. Full Name: The name of the person, whose name will be printed on the Report 26Q needs to be entered here. 5. Designation: The designation of the person, whose name will be printed on the Report 26Q needs to be entered here. 6. Printing date: The date on which the Report 26Q will be printed is entered here. After mentioning all the above fields, click Preview button. System will show the Print Preview of form 26Q as shown below.
Generate Form 27Q

Navigation: Financial Management General Ledger Periodic Activities Tax Deduction at Source Generate form 27Q. Use the above option to generate form 27Q in print format.
Report frequency quarterly: 1. T.A.N Location: An existing TAN Location is selected here for which the Report 27Q will be generated. 2. Report Frequency: Choose Quarter (Quarter 1 or Quarter 2, or Quarter 3 or Quarter 4) from the drop down option 3. Choose Financial Year: Define Starting year and End year. Example: For Financial Year 2005 -2006, starting year is 2005 and ending year is 2006. 4. Full Name: The name of the person, whose name will be printed on the Report 27Q needs to be entered here. 5. Designation: The designation of the person, whose name will be printed on the Report 27Q needs to be entered here. 6. Printing date: The date on which the Report 27Q will be printed is entered here. After mentioning all the above fields click to Preview button. System will show the Print Preview of form 27Q as shown below.
Generate eTDS
Navigation: Financial Management General Ledger Periodic Activities Tax Deduction at Source Generate eTDS. After generating form 26Q / 27Q, user will generate e-TDS along with form 27A. The user can Print / Preview Form 26Q and Form 27Q from the Generate Form 26 Q and Generate Form 27 Q menu respectively. These reports will be generated along with the annexure (Deductee Details, Challan Details). Report 27A will be generated along with e-TDS. This report will populate records in 26Q / 27Q table for the given quarter and generate a report for 26Q / 27Q as per specified format.
Here the user needs to select e-TDS (26Q or, 27Q) from the dropdown return that needs to be generated. On selecting Generate eTDS a new form will open:
Field Description:
1.File Name: Select the location of the e-TDS file to be generated and stored. 2. TAN Location: An existing TAN Location is selected here for which the Report 26Q will be generated. 3. Report Frequency: Choose Quarter (Quarter1 or Quarter 2, or Quarter 3 or Quarter 4)
4. Financial Year: Define Starting year and End year. Example: For Financial Year 2005 -2006, starting year is 2005 and ending year is 2006. 5.Full Name: The name of the person, whose name will be printed on the Report 26Q needs to be entered here. 6.Designation: The designation of the person, whose name will be printed on the Report 26Q will be entered here. 7.Printing date: The date on which the Report 26Q will be printed is entered here. This process will create e-TDS return in txt file on the selected path for a period and also generate 27A report as per the specified format. Format of form 27A.
To run this process, generation for 26Q report should be run, at least once. However, the user has the option to run only the 26Q / 27Q report without e-TDS. The file should be validated through the File Validation Utility (FVU) before furnishing it with the government. After filing the return with the government the user will click File eTDS to update the file status to mark the entries as Filed.
This option requires following information to be entered by the user: Quarter Financial year Date of filing Provisional Receipt No. File eTDS will run only under the following conditions: The Report selected is either Report 26Q or Report 27Q The quarter selected in the field Period is in open status i.e., the eTDS Filed for the Report selected for the relevant period is not marked. System will capture the following: If filed ( Yes or No) Date of filing
Return Status will show the user, which e-TDS returns and Revised Returns have been filed. The data will be displayed according to Financial Year and Quarters.
User can view all the Previous RRR No.s defined for the quarter through the lookup provided.
Correction in Statement of TDS:

There are six different types of Correction Statements that can be furnished by the deductor for various types of correction. These are listed below. C1: Correction in Deductor / Collector Details (excluding TAN) C2: Correction in Deductor/Collector (excluding TAN) and / or Challan Details C3: Correction in Deductor/Collector (excluding TAN) and / or Challan Details and / or Deductee Details C5: Correction of PAN of Deductee. C9: Addition of Challan(s) Y: Cancellation of statement to be made for rectification of Deductor/Collector TAN In a C1 correction statement a deductor can update its PAN, name, demographic details, responsible persons details, type of deductor. Details mentioned in the regular statement or last correction statement furnished will be updated with the details provided in the current correction statement. Hence fields where no corrections are required should contain values as mentioned in the regular or last correction statement. A C2 correction statement can be furnished when: There are corrections only in challan detail (CD) records OR
There are corrections in challan detail (CD) records and in deductor details (except TAN) (BH), like PAN, name, demographic details, responsible persons details, type of deductor, etc.
A C3 correction statement can be furnished when: There are corrections only in deductee detail (DD) records or, There are corrections in deductee detail (DD) records and challan detail (CD) records and/or deductor details (except TAN) like PAN, name, demographic details, responsible persons details, type of deductor, and so on. Details mentioned in the regular or last correction statement furnished will be updated with the details provided in the current correction statement. A C5 correction statement can be furnished when: There are updations in deductee PAN i.e. a valid 10-digit PAN to be replaced in place of PANINVALID, PANNOTAVBL and PANAPPLIED or A valid 10-digit deductee PAN stated in the regular or last corresponding statement to be replaced with another valid 10-digit PAN. Details mentioned in the regular or last correction statement furnished will be updated with the details provided in the current correction statement. A C9 Correction Statement can be furnished if; A new challan along with underlying deductee records (if any) is to be added to the regular statement. A Y Correction Statement can be furnished if; there is a change in the TAN number of the deductor/collector. Various types of Corrections Statements are C1, C2 , C3 , C5 and C9 . They can be furnished as a single statement. Statements with multiple corrections are called Multiple Batch Correction Statement. Each type of correction in a Multiple Batch Correction Statement is termed as Batch. Multiple Batch Correction Statement can contain various types of corrections (Batches) pertaining to corrections in the same regular statement furnished (same TAN, Form no., Period, F.Y., A.Y.) only. Example, if there are different types of corrections in different Forms (Form 2 4 Q / 2 6 Q / 2 7 EQ ) for the same TAN and Periodicity, separate files with respective batches will be furnished for each kind of form. A Multiple Batch Correction Statement will always contain a File Header (FH) record. There will be multiple Batch Header (BH) records, depending on the number of batches (C1 , C2 , C3 , C5 , C9 ). There are various combinations in which a Multiple Batch Correction Statement can be prepared and furnished.
A Multiple Batch Correction Statement can be furnished only for C1, C2, C3, C5 and C9 type of Correction Statements. Y type of Correction Statement should be furnished separately. It cannot be part of Multiple Batch Correction Statement. In case of a Multiple Batch Correction Statement, separate provisional receipts will be generated for each batch within the statement. For example if there are three batches like C5, C3, and C9 then, three separate provisional receipts will be generated.
General LedgerPeriodic ActivitiesTax Deducted at SourceCorrect 26Q/27Q Entries
A new Form Correct 26Q / 27Q Entries is created for the corrections in the Quarterly Statement. The user will enter the Financial Year and the Quarter for which he wants to post the corrections. The corrections in a return will be allowed only when the original return has been filed.
Field Description: Quarter: Select the quarter for which corrections are to be made (Q1, Q2, Q3 or Q4). Financial Year: Select the Financial year for which the corrections are to be made. Correction Type: Select whether the corrections are, for Deductor / Challan / Deductee / Deductor TAN 26Q/27Q: Select the Correction Type as 26Q or 27Q.
Clicking OK button after entering in Quarter, Fiscal Year, and Correction Type fields, different forms are opened depending upon selection of Correction Type. If Correction is to be made on Deductee Record, following form will be opened.
The user can make changes in Editable fields of this form and then click Update Entries in Function menu button. This will update the 26Q / 27Q entries with new values.
If Correction is required in Deductor Record, following form will be opened.
The user can make changes in Editable fields of this form and then click Update Entries in Function menu button. This will update the 26Q/27Q entries with new values. If correction is required in Challan Details, following form will be opened.
The user can make changes in Editable fields of this form and then click Update Entries in Function menu button. This will update the 26Q/27Q entries with new values. If correction is required in Deductors TAN Number, following form will be opened.
User can make changes in Editable field i.e. only in TAN number of this form and click Update Entries in Function menu button. This will update the 26Q/27Q entries with new values. The system will automatically identify the corrections as C1, C2, C3, C5, C9 or Y type. However, user can also modify the correction type field in individual windows.
Generate Revised 26Q / 27Q

Once the corrections are done, a form will be provided for the generation of Revised 26Q / 27Q, as:
.
Field Description:
File Name: Location of the e-TDS file TAN Location: An existing TAN Location is selected here, for which the Report Revised 26 Q will be generated.
Report Frequency: Choose Quarter (Quarter 1 or Quarter 2, or Quarter 3 or Quarter 4) from the drop down option. Financial Year: Define Starting Year and End Year. Example: For Financial Year 2005 -2006, starting year is 2005 and ending year is 2006. Full Name: The name of the person, whose name will be printed on the Report Revised 26Q needs to be entered here. Designation: The designation of the person, whose name will be printed on the Report Revised 26Q will be entered here. Printing date: The date on which the Report Revised 26Q will be printed, is entered here.
Revised Form 26Q will be generated in the following format:
Generate Revised eTDS

Navigation: Financial Management General Ledger Periodic Activities Tax Deduction at Source Generate Revised eTDS. After doing specific corrections the user can generate e-TDS through Generate revised e-TDS for 26Q / 27Q.
A form will be opened where the user will define various filter conditions for the generation of Revised 26Q.
A Multiple Batch Correction Statement can be furnished only for C1, C2, C3, C5 and C9 type of Correction Statements. Y type of Correction Statement should be furnished separately. It cannot be part of Multiple Batch Correction Statement. Hence for a correction entry involving C1, C2, C3, C5, C9 and Y type of corrections, three different eTDS files will be created. 1. eTDS for C1, C2, C3, C5 or C9 corrections 2. eTDS for Y type corrections 3. eTDS for regular Y. Revised 27A will be generated with the generation of Revised e-TDS.
After preparation of the Correction Statement the same is to be validated through the File Validation Utility (FVU). The procedure for validation is the same as that for regular statements. Thereafter, furnish the validated (.FVU) Correction Statement with a TIN-FC or directly through the NSDL web-site (www.tin- nsdl.com). The Revised e-TDS can be filed for a specific quarter.
This option requires following information to be entered by the user. Quarter Financial year Date of filing Provisional Receipt No. In case of a Multiple Batch Correction Statement separate provisional receipts will be generated for each batch within the statement. For example if there are three batches like C5, C3, and C9 three separate provisional receipts will be generated. The User can enter multiple Provisional Receipt No.s in the field above. The last Provisional Receipt No. will be used for generation of Batch Header. System will capture the following field: If filed ( Yes or No) Date of filing
Return Status will show the user, which Revised Returns have been filed. The data will be displayed according to Financial Year and Quarters.
User can view all the Previous RRR No.s defined for the quarter through the lookup provided.
Example 1:
Company ABC has received Professional Services from Vendor XYZ . XYZ raised a bill for Rs.1, 00,000/- on ABC. ABC will deduct TDS on 100000 @ 5.61% including surcharge and eCess. ABC will post the following entries:
Professional Charges A/C To TDS Payable Services A/C To XYZ A/C
Dr. Cr. Cr.
Rs.1,00,000 Rs. 5,610 Rs. 94,390
ABC will deposit TDS to Government Authority by passing the following entry. TDS Payable - Services A/C To Bank/Cash A/C Dr. Cr. Rs.5,610 Rs.5,610
ABC will make final payment to XYZ. Entry will be.
XYZ A/C To Bank A/C
Dr. Cr.
Rs.94,390 Rs.94,390.
ABC will issue a TDS certificate (form 16A) for Rs. 5,610 to XYZ.
Example 2:
A regular statement containing four challans / transfer voucher details where: Challan 1 has 10 Deductee records Challan 2 has 5 Deductee records Challan 3 has 15 Deductee records Challan 4 has 20 Deductee records is furnished. Subsequently, there are corrections in the following records in the regular statement; Corrections in Deductor Details In challan 1, update CIN Details
In challan 3, CIN Details to be rectified and for underlying Deductee 4 incorporate 10digit PAN instead of PANINVALID in the Deductee PAN field, for Deductee 10 replace valid PAN with another valid PAN In Challan 4, add a Deductee record. An additional challan with 2 underlying Deductees to be added. There are no changes in challan 2 or its underlying Deductee records. The sequence of these batches (correction statements in a file) will be as follows: File header record (FH) Batch Header record 1 (BH) C5 (updation of Deductee PAN) Challan detail record 3 (CD) Deductee detail record 10 (DD) update valid to valid PAN Batch Header record 2 (BH) C2 (updation of Challan) with batch updation indicator 1 for corrections in Deductor Details. Challan / Transfer Voucher Detail record 1 (CD) updation of CIN Batch Header record 3 (BH) C3 Challan / Transfer Voucher Detail record 3 (CD) Deductee Detail record 4 (DD) update PANINVALID with valid PAN Challan / Transfer Voucher Detail record 4 (CD) Deductee Detail record 21 (DD) addition of a Deductee Batch Header record 4 (BH) C9 addition of a Challan Challan / Transfer Voucher Detail record 5 (CD) Deductee Detail record 1 (DD) Deductee Detail record 2 (DD) If there are no corrections in Challan or Deductee Details except for updation of Deductee PAN and corrections in Deductor Details along with addition of Challan, the sequence will be: C1, C5, C9. A Multiple Batch Correction Statement can be furnished only for C1, C2, C3, C5 and C9 type of Correction Statements. Y type of Correction Statement should be furnished separately. It cannot be part of Multiple Batch Correction Statement. In case of a Multiple Batch Correction Statement separate provisional receipts will be generated for each batch within the statement. For example if there are three batches like C5, C3, and C9 three separate provisional receipts will be generated.
Microsoft Business Solutions Navision 4.0- Tax Collection at Source
Table of Contents
Tax Collection at Source .............................................................................................. 3 Creation of a New Account in Chart of Accounts ...................................................... 5 Number Series Setup ................................................................................................... 6 Setup for Tax Collection at Source ............................................................................. 7 Customer Master ........................................................................................................ 25 Company Information Setup ...................................................................................... 26 General Ledger Setup ................................................................................................ 27 State ............................................................................................................................. 28 Customer Transactions .............................................................................................. 29 Direct Invoices using General Journal .................................................................. 31 Direct Invoices using Invoices ............................................................................... 32 Sales Order based Invoices using Orders............................................................ 33 Advance Payment using Cash Receipt Journal................................................... 35 Adjustment of Advance Payment against Invoice / Order .................................. 36 Credit Memo through Return Order ...................................................................... 37 Payment of TCS amount to government .............................................................. 39 TCS Adjustment Journal ............................................................................................ 41 Update TCS Register ................................................................................................. 43 TCS Challan Register................................................................................................. 45 Generation of TCS Certificate ................................................................................... 46 Form 27EQ .................................................................................................................. 50 Generate eTCS ........................................................................................................... 51 Correct 27EQ Entries ................................................................................................. 54 Revised Form 27EQ ................................................................................................... 59 Generate Revised eTCS ............................................................................................ 61 Reports ........................................................................................................................ 64 Appendix...................................................................................................................... 68
Tax Collection at Source

Tax Collection at Source (TCS) is one of the methods for tax collection by the government. It follows the principle You pay while you earn. While Tax Deducted at Source (TDS) requires the payer to deduct tax at source and remit the tax to the government, TCS requires the receiver/seller to collect tax at source and remit it to the government. The purpose of this provision is to eliminate tax evasion in certain trades. Section 206C (1) says, Every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a check or draft or by any other mode, whichever is earlier, collect from the buyer of any goods of the nature specified, a sum equal to the percentage specified of such amount as income tax. Section 206C (1C) says Every person, who grants a lease or a license or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting of the amount payable by the licensee or lessee to the account of the licensee or lessee or at the time of receipt of such amount from the licensee or lessee in cash or by the issue of check or draft or by any other mode, whichever is earlier, collect from the licensee or lessee of any such license, contract or lease of the nature specified, a sum equal to the percentage specified, of such amount as income tax.
Specified Goods for which TCS is Applicable

The Seller of the following products has to collect the tax at source: 1 2 3 4 5 6 Alcoholic liquor for human consumption Tendu leaves Timber obtained under forest lease Timber obtained by any mode other than a forest lease Any other forest produce not being timber or tendu leaves Indian Made Foreign Liquor 7 Scrap
Specified Leases, Licenses or Contracts for which TCS is Applicable

The grantor of the following leases, licenses or contracts has to collect the TCS: 1 2 Parking Lot Toll Plaza 3 Mining and Quarrying
Collection of Tax
TCS has to be collected by the seller, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount, from the buyer in cash or by issue of check/draft or by any other mode, whichever is earlier.
Deposition of Tax
TCS must be deposited within one week from the last day of the month in which the tax was collected at source through ITNS 281.
Issuance of Certificate
The certificate for TCS is to be issued in Form No. 27D. The certificate should be issued within a period of one month from the end of the month in which tax is calculated, where more than one certificate is required to be furnished to a buyer for tax collected at source in respect of the period ending on the September 30 and March 31 in each financial year, the person collecting the tax, may (on request from such buyer), issue within one month from the end of such period. A consolidated certificate is required in form No 27D for the tax collected during the period. However, there is no requirement of furnishing such certificate in respect of tax collected on or after April 1, 2008.
Quarterly Statement of TCS

TCS return should be submitted quarterly (with effect from April 1, 2005) after the end of each quarter in Form No 27 EQ within 15 days from the end of each quarter or 76 days in the case of last quarter. Quarterly TCS return cannot be submitted unless interest for late deposit of TCS is paid. Due dates for filing of quarterly return of TCS:
Form No.
27 EQ 27 EQ 27 EQ 27 EQ
Description
For the quarter ending, June 30 For the quarter ending, September,30 For the Quarter ending, December,31 For the quarter ending, March 31
Due Date
July, 15, October,15 January,15 June,15
You need to define certain setups to manage the TCS transactions in Navision 4.0.at the following levels: Creation of new account in chart of accounts Number series setup Setup for Tax Collection at Source Setup on Customer card Company Information setup General ledger setup State set up
Creation of a New Account in Chart of Accounts

You need to create balance sheet liability accounts for TCS transactions. You also need to create one account for each TCS Type under which company collects the tax.
NAVIGATION: Financial Management General Ledger Chart Of Accounts
Create the necessary GL accounts for all the TCS Payables accounts. For example, TCS Payable Account -A TCS Payable Account -B TCS Payable Account -C
Number Series Setup

TCS certificates are reports generated in Navision and issued to Customers. You need to create separate number series for TCS Certificates. The Number Series you create will be linked to each TCS group.
NAVIGATION: Administration Application Setup General No. Series
Setup for Tax Collection at Source

You need to define certain setups for TCS in the Financial Management module. These setups are as follows: Accounting Period T.C.A.N Nos. Groups Nature of Collection Assessee Code Setups Parties Concessional Codes NOC Lines Correction Codes
TCS Setup
A new menu is available created under Financial Management Setup Tax Collected at Source, as follows:
Accounting Period
TCS accounting period is required for generation of TCS transactions. You need to specify TCS accounting periods while filing Form 27 EQ. TCS accounting period will be the same as the TDS accounting period. The program will show an error if the TCS accounting period is not defined for the transaction date. You need to create the required accounting period to be followed for TDS and TCS. The financial year to be followed as per the Income Tax Act, 1961 is April to March.
NAVIGATION: Financial Management Setup Tax Collection at Source Accounting Period
Field
Number
Comments
Is the serial number of accounting period and is generated automatically by the program.
Starting Date & Ending Date
The field displays the starting and ending dates of the TCS accounting period.
Closed
A checkmark in this field indicates that the TCS accounting period has been closed.
Create Year To create a new accounting period for TCS, click the Function menu, and choose Create Year.
Field
Starting Date
Comments
Define the starting date for the TCS accounting year
Ending Date
Define the ending date for the TCS accounting year
Close Year Click FunctionsClose Year, to close the accounting periods of TCS. Once the year is closed, the Closed field gets marked true. After the TCS accounting period has been closed, no TCS transaction can be done during that accounting period. Create Quarter Click Lines Create Quarter, to define the quarters within a specific TCS Accounting year.
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Field
Quarter
Comments
Define the code for the quarter (Q1, Q2, Q3, and Q4) from the dropdown list.
Starting Date
Define the Starting Date of the Quarter
Ending Date
Define the Ending Date of the Quarter
The program will use this setup while filing of eTCS and revised eTCS for a specific quarter.
T.C.A.N. No.
A T.C.A.N. (Tax Collection Account Number) master is available where all the T.C.A.N. numbers will be defined for different locations of a company where TCS has been collected. T.C.A.N number is a unique code made up of 10 alphanumeric characters. T.C.A.N number is allotted by Income Tax Department to the collector. Collector is the person who collects the tax from customers for selling of specified goods or providing of specified services.
11
Section 203 A of Income Tax Act, 1961, says With effect from October 1,2004, every person , deducting tax or collecting tax , who has not been allotted a tax deduction account number or, as the case may be, a Tax Collection Account Number, shall within one month from the end of the month in which tax was deducted or collected or January 31, 2005, whichever is later, apply to the Assessing Officer in Form No. 49B for the allotment of a Tax Deduction and Collection Account Number. Where a Tax Deduction Account Number or Tax Collection Account Number or Tax Deduction and Collection Account Number has been allotted to a person, such person shall quote such number in all challan, certificates, returns and other documents pertaining to such transactions as may be prescribed. The above section suggests that for all applications made after 31st January 2005 either for Tax Deduction Account Number or Tax Collection Account Number only one number is allotted, that is Tax Deduction and Collection Account Number. If the person is having Tax Collection Account Number the same should be used for TCS purposes.
NAVIGATION: Financial Management Setup Tax Collected at Source TCAN Master
12
Nature of Collection
Nature of Collection defines the various categories of goods on which TCS is liable to be collected.
NAVIGATION: Financial Management SetupTax Collected at Source Nature of Collection
Field
Type
Comments
Define nature of collection as a code.
Description
The description is defined against the respective values of TCS type.
TCS Type
Select the relevant TCS Type, namely, A to I respectively.
TCS Assessee Code

In this window, you define whether a buyer is a company or others. In TCS return company buyer is to be shown as 01 and other as 02.
NAVIGATION: Financial Management SetupTax Collected at Source Assessee Code
13
Field
Code
Comments
Define a code for the Assessee
Description
Enter the Description
Type
Select Company or Others from the dropdown list
You can click TCS Setup to view the TCS details associated with the Assessee Code. Click Details to view the TDS details associated with the Assessee Code.
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TCS Setup
In TCS Setup you can define rates, threshold amounts, per contract amount, and so on, for all sub-elements of TCS applicable for different combination of the TCS type.
NAVIGATION: Financial Management SetupTax Collected at Source Setup
Field
TCS Nature of Collection
Comments
Select the TCS Nature of Collection in this field from the lookup list as defined in the Nature of collection master.
Assessee Code
Select code from the Lookup list as predefined in the assessee code master.
Effective date
Enter the effective date, from which the TCS rate would be applicable.
Concessional Code
Select the values from the lookup list as defined in Concessional Code master. This field is required when the rate defined is concessional or Zero as per the certificate issued under section 206C (9). The values in this field are i) A, if the lower deduction is as per
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Field
Comments
206C (9). ii) B, for any other reason. The value selected here will be shown in quarterly return. On the basis of the option values selected here, the values of A or B will flow in Quarterly return (27EQ).
TCS %
Define the base TCS rate. It is the applicable rate for the TCS type. Rate can be zero. The field should be in percentage. The field is mandatory.
Surcharge %
Specify the surcharge rate, if applicable, which is computed on the TCS amount. Rate can be zero. The field should be in percentage. The field is mandatory
eCess %
Specify the education eCess rate if applicable, which is computed on the TCS plus Surcharge amount. Rate can be zero. The field should be in percentage. The field is mandatory
TCS Type
TCS Type will display default values automatically when TCS Nature of Collection is selected.
TCS Threshold Amount
Define the threshold limit, that is the amount up to which no tax will be collected.(Presently there is no Threshold limit applicable in case of TCS however in view of flexibility the functionality has been provided)
Surcharge Threshold Amount
Define the surcharge threshold limit, that
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Field
Comments
is, the amount up to which no surcharge will be collected.
Contract Amount
Define the Per Contract Value for each TCS Group where it is applicable. TCS will be collected only if the total transaction exceeds the per contract value in a single transaction of Threshold amount in a financial year.(Presently there is no per contract value is applicable in case of TCS however in view of flexibility the functionality has been provided)
TCS Account No
Select the TCS Payable account from the Chart of Account.
No. Series
Select the number series that will be used for generation of certificate nos for each TCS Group.
You need to navigate to Setup Card, to setup the above values for TCS Nature of Collection.
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You can also use the Copy functionality to create different combinations for the same nature of collection
18
Field
Comments
Define the TCS Nature of Collection for which a new combination is to be created in the setup.
Assessee Code
Define the Assessee code
Effective Date
Date from which the rates will be applicable
TCS Concessional Code
Define if any Concessional code is applicable
Copy
Define if all the fields from previous TCS Nature of Collection should be copied or only a selected set of fields will be copied
You can then modify the fields according to your requirement on the setup card created.
19
Party Master (Parties)

TCS parties are one time parties which are not part of regular Customer Master.
NAVIGATION: Financial Management Setup Tax Collection at Source Parties .
Field
Code
Comments
Define the party code.
Description
Specify the Name of the party. Specify the partys address.
Address, Address 2
State
Specify the state of the party.
Postal Code
Specify the relevant Postal code.
PAN No
Specify the Permanent Account Number (PAN) of the party. If the PAN No. is not available and PAN is applied for, then PAN Reference No. will be filled. This PAN Reference No. will be quoted in the TCS returns filed with the tax authority
PAN Reference No
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Concessional Code NAVIGATION: Financial Management SetupTax Collected at Source Concessional Code
Field
Concessional Code
Comments
Define various concessional codes.
Description
Provide the description of the concessional codes.
Nature of Collection (NOC) Lines

This is the master to link the customer with different Nature of collection. One or more nature of collection can be attached to a customer.
NAVIGATION: Financial Management SetupTax Collected at Source NOC Lines
21
Field
Type
Comments
Choose type of party from the drop down list, The available option are: customer, party, vendor.
No
Select the number of the customer /party/vendor from the look up list.
Assessee Code
Select the Assessee code for the customer/ party/vendor from the look up list.
Nature of Collection
Select the Nature of collection from the lookup list as defined in the TCS Nature of Collection master.
Concessional code
Select the concessional code from the lookup list defined in the Concessional Code master.
Concessional Form Number
If concessional code is applicable for
22
Field
Comments
selected TCS type, Concessional form No. field will be filled with the concessional form number of the customer/party.
Threshold Overlook
Threshold limit is the maximum amount defined in the TCS Setup master for the particular TCS type up to which no TCS will be collected. If you want to collect TCS even though the threshold limit is not crossed for the customer then you have to check mark threshold overlook field.
Surcharge Overlook
If you want to collect surcharge even though the surcharge threshold limit is not crossed for the customer then you have to check mark Surcharge overlook field.
Correction Type Setup

You use the Correction Type Setup window where you can define the Correction codes and their sorting order.
NAVIGATION: Financial ManagementSetupTCSCorrectionType
23
Field
Code
Comments
Define Code for the Correction type
Correction Type
Select Corrections Type (C1, C2, C3, C5, and C9) from the dropdown list provided, that can be done at the time of revised returns.
Description
Specify the details of correction codes.
Sorting Order
Define the sorting order of the correction type.
The program will use the sorting order for corrections defined in the setup to file the revised eTCS returns. Correction statements (batches) in a multiple batch correction statement have to necessarily be in the following sequence:
C1, C5, C2, C3, C9, Y
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Customer Master
Field
P.A.N. No
Comments
Define the PAN No (Permanent Account number) of the customer. PAN No should be 10 alphanumeric characters.
PAN Status
Select the status of the PAN from the dropdown list where PAN No is not available, or PAN No is available with invalid No. The available options are PANAPPLIED / PANINVALID / PANNOTAVBL
PAN Reference No
Define the PAN Reference no. PAN reference No is available with customer where PAN is applied to the Income tax Authority.
25
Company Information Setup

A person selling any goods specified in the Section 206C of the Income Tax Act is required to apply and obtain a new number called T.C.A.N. under Section 206CA.
Field
T.C.A.N No
Comments
Select the T.C.A.N. No. from the look up list. It is mandatory to enter the T.C.A.N. Number because all TCS entries are generated based on this number.
Assessing Officer
Specify the Assessing officer. This field will accept alphanumeric characters.
Circle Number
Specify the circle number of the Income Tax Department to which the Assessee belongs .This field will accept alphanumeric characters.
Ward Number
Specify the Ward number of the Income Tax department to which the Assessee belongs .This field will accept alphanumeric characters.
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TCS rounding precision will be defined in the General ledger setup.
. Fill in the fields according to these guidelines: Field

TCS Rounding Type
Comments
Define whether TCS amount will be rounded up or down or nearest. The program uses this information to round the TCS amount to the whole number.
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State
NAVIGATION: Financial ManagementSetupSales TaxStates
Field
Code
Comments
Define the Code for each state.
Description
Define the description for each state code.
State Code for eTDS/eTCS
Define the state code for eTDS / eTCS that is to be used for eTCS filing with the tax.
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Customer Transactions
TCS functionality is available in the following windows: General Journal Sales Journal Sales Order Sales Invoice Cash Receipt Journal Credit Memo Return Order In Sales Order, Sales Invoice, General Journal, Cash Receipt Journal, Sales Journal, Credit Memo and Return Order for TCS calculations, the following fields are mandatory: Fill in the fields according to these guidelines:
Field
TDS/TCS Party Type
Comments
Select the party type from the drop down list.
TDS/TCS Party
Select the Customer / Party Number from the list.
TDS/TCS Assessee Code
The assessee code is set to a default value automatically from the NOC Party master.
Select the Nature of collection from the look up list on which TCS is to be computed. After selecting the above field, the program automatically picks up the following fields value from the respective table.
TDS/TCS%
The TCS rate is set to default automatically from TCS Setup Master based on the combination of Nature of Collection and Assessee Code.
TDS/TCS Amount:
The TCS Amount is computed
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Field
Comments
automatically by the program.
Surcharge %
The Surcharge rate is set to default automatically from TCS Details Master, based on the combination of nature of collection and assessee code.
Surcharge Amount
The Surcharge Amount is computed automatically by the program.
TDS/TCS Amount including Surcharge
This field displays the total of TCS and Surcharge.
eCess %
The eCess rate is set to default automatically from TCS Setup Master based on the combination of nature of collection and assessee code.
eCess on TDS/TCS Amount:
The eCess Amount is computed automatically by the program.
Total TDS/TCS Including eCess
This field displays the total amount of TCS to be deducted for the transaction.
When you select the TCS Nature of Collection from the lookup button, the TCS rate is set to a default value automatically from TCS Setup Master, based on the combination of nature of collection and Assessee Code. Other automated fields of a transaction, are as follows: TDS/TCS Amount Surcharge % Surcharge Amount: TDS/TCS Amount including Surcharge Education Cess eCess % eCess on TDS/TCS Amount Total TDS/TCS Including eCess
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Direct Invoices using General Journal

Tax is collected on Customer Invoices against which no advance payment has been received. When you make invoice transactions program will make a few additional entries, apart from the regular entries.
NAVIGATION: Financial Management General Ledger General Journals
Following are the steps for creation of an invoice through general journal Enter the Posting Date Select Document Type as Invoice Select TDS/TCS Party Type as Customer Select the TDS/TCS Party from the look up list Do not Select Account Type and Account No as these are automatically populated Select TCS Nature of Collection from the look up list For example - A Select the T.C.A.N No Enter Amount Enter Balancing Account The following fields are automated from the predefined setups: TDS/TCS Assessee Code TDS/TCS % TDS/TCS Amount: Surcharge % Surcharge Amount: TDS/TCS Amount including Surcharge
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eCess % eCess on TDS/TCS Amount: Total TDS/TCS Including eCess Post the Journal When making Invoices using General Journal / Sales Journal, make sure that the Document Type is selected as Invoice and the Invoice Amount is denoted with a positive (+) sign, as the customer has to be debited with the amount.
Direct Invoices using Invoices

Tax is collected on Customer Invoices against which no advance payment has been received. While making invoice transactions program will make a few additional entries apart from the regular entries.
NAVIGATION: Financial Management Receivables Invoices
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Following are the steps for creation of an invoice through Sales Invoice window Select Sell to Customer No Enter Posting Date Enter the External Document No On the shipping tab select Location Code On the Lines Select account Type item. Select No. Enter Quantity Select TCS Nature of Collection Enter Unit Price Excl. VAT To compute the TCS value, on Functions menu button, click Calculate TCS. The following fields are automated from the setups predefined: TDS/TCS Assessee Code TDS/TCS % TDS/TCS Amount Surcharge % Surcharge Amount: TDS/TCS Amount including Surcharge eCess % on TDS/TCS eCess on TDS/TCS Amount Total TDS/TCS Including eCess Post the Invoice
Sales Order based Invoices using Orders

Tax is collected on Customer Sales Orders against which, no advance payment has been received. When you make a Sales order, program will make a few additional entries apart from the regular entries.
NAVIGATION: Sales & Marketing Order Processing Orders
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Following are the steps for creation of an invoice through Sales Order window Select Sell-to Customer No. Enter Posting Date Enter the External Document No On the Shipping tab select Location Code On the Lines Select account Type Item. Select Item No. Enter Quantity Select TCS Nature of Collection. Enter Unit Price Excl. VAT To compute the TCS value, on Functions menu button, click Calculate TCS. The following fields are automated from the predefined setups: TDS/TCS Assessee Code: TDS/TCS %: TDS/TCS Amount: Surcharge %: Surcharge Amount: TDS/TCS Amount including Surcharge. eCess % on TDS/TCS Amount: eCess on TDS/TCS Amount: Total TDS/TCS Including eCess: Release and Post the SO.
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Advance Payment using Cash Receipt Journal

TCS is collected when payment is received or debited to the customer which ever is earlier. At the time of receiving the advance, seller has to collect the TCS and this TCS will be calculated using the grossing up approach. Examples are shown in the Appendix.
NAVIGATION: Financial Management Receivables Cash Receipt Journal
Following are the steps for receiving the payment through Cash receipt journal: Select Document Type as Payment Enter Document no Select TDS/TCS Party Type as Customer/Party Select the TDS/TCS Party Do not Select Account Type and Account No as these are automatically populated. Enter the External Document No Select TCS Nature of collection. Select the T.C.A.N No from the look up button Enter Amount The following fields are automated from the setups predefined TDS/TCS Assessee Code TDS/TCS % TDS/TCS Amount: Surcharge %
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Surcharge Amount TDS/TCS Amount including Surcharge eCess % eCess on TDS/TCS Amount Total TDS/TCS Including eCess Now Post the Journal
Adjustment of Advance Payment against Invoice / Order

Adjustment of advance can be made through the following windows where the TCS has already been collected in advance: Sales Journal Sales Invoice Sales Order General Journal TCS is not collected on Customer Invoices against which advance payment has been received and TCS collected at the time of receipt of advance payment.
NAVIGATION: Financial Management Receivables Sales Journals
Following are the steps for adjusting advance against an invoice: Enter the Posting Date Select Document Type as Invoice Enter the External Document No, for example- Cust
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Select TDS/TCS Party Type as Customer Select the TDS/TCS Party Do not Select Account Type and Account No as these are automatically populated Select TCS Nature of Collection Select the T.C.A.N No Enter Amount Enter Balancing Account Select Applies to Doc. Type and Applies to Document No. for the payment that has been received against this invoice The following fields are automated from the predefined setups: TDS/TCS Assessee Code TDS/TCS % TDS/TCS Amount Surcharge % Surcharge Amount: TDS/TCS Amount including Surcharge eCess % eCess on TDS/TCS Amount: Total TDS/TCS Including eCess Post the Journal The program will not calculate TCS at the time of invoicing since the TCS has already been collected at the time of receipt of advance payment against the invoice.
Credit Memo through Return Order

NAVIGATION: Sales & Marketing Order Processing Return Orders
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Following are the steps for creating credit memo through return order: Select Sell-to Customer No. Enter Posting Date Enter the External Document No On the Shipping tab -select Location Code Select Applies to Doc. Type and Applies to Doc No, if applicable On the Lines -Select account Type Item. Select Item No. Enter Quantity Select TCS Nature of Collection. Enter Unit Price Excl. VAT To compute the TCS value, on Functions menu button, click Calculate TCS. The following fields are automated from the setups predefined: TDS/TCS Assessee Code: TDS/TCS %: TDS/TCS Amount: Surcharge %: Surcharge Amount: TDS/TCS Amount including Surcharge. eCess % on TDS/TCS Amount: eCess on TDS/TCS Amount: Total TDS/TCS Including eCess: Release and Post the Sales Return Order. If Credit Memo is created before remittance of Tax to government, the TCS entries will get reversed proportionately, on the basis of the quantity returned.
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In case TCS amount has been remitted to Income Tax department, TCS Payable account will not be reversed, incase Applies to document type and Applies to document No has been selected.
Payment of TCS amount to government

The TCS that you have collected on various transactions described above has to be finally deposited with the government. Payment of TCS collected can be done through General Journal in General Ledger Module Navigation: Financial Management General Ledger General Journal Functions Pay TCS
On Functions menu button, click Payment and then select TCS. A form opens that will show all the TCS entries.
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Select the field or fields on which the filters need to be put. The form will show the TCS entries for the selected filters only Select the entries for which TCS amount needs to be paid. Click Pay button of the screen, so that the total of the selected entries is transferred to the General Journal. Post the journal.
PERIODIC ACTIVITIES (TCS) NAVIGATION: Financial Management Periodic Activities Tax Collection at Source
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TCS Adjustment Journal

Adjustment Journals are to be used for correction of the TCS amount already collected but which are yet to be paid to the Income Tax Authority.
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Select the Transaction number from the look up list and change the details to correct the transaction. You can increase or decrease the TCS rate, Surcharge rate, eCESS rate and the adjustments would be made accordingly.
NAVIGATION:
General Ledger Periodic Activities Tax Collected at Source TCS Adjustment Journal
1 2 3 4
Filter the entries for which you want to make the adjustments. The selected entry shows the TCS%, eCess %, surcharge % that was applied to it at the time of posting. Now fill in the new TCS%, surcharge % and eCESS % for this entry. Post the journal. The revised TCS Amount has now updated in the relevant GL accounts for TCS payable and Customer account.
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Update TCS Register

In update TCS register window you can update the challan details against the amount deposited in the bank. NAVIGATION: General Ledger Periodic Activities TCS Update TCS Register
TCS register is maintained to keep track of all the TCS payments made to the government with relevant challan details. The challan number, challan date and bank name is updated using this functionality which has to be updated for each transaction to be printed on TCS certificate.
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Field
Pay TCS Document No
Comments
This field specifies the Pay TCS Document No. of the line selected from the update TCS register.
Challan No
This field specifies the Challan No. Challan is a mode of payment of tax to the government account. A bank gives the Challan No. by stamping on the challan, through which TCS amount has been deposited. This field specifies the date of the challan.
Challan Date
Bank Name
This field specifies the name of the bank branch where you deposited the TCS amount.
BSR Code
This field specifies the BSR Code. BSR code is the identification code of the bank branch, where TCS amount is deposited. BSR code is applicable to both Government and Non government organizations. This code must have seven characters.
Cheque No
This field specifies the Cheque / DD number through which challan is paid. The value of this field must be zero if tax is deposited in cash. No value will be provided if tax is deposited by book entry. This field can contain 10 integers.
Cheque Date
This field specifies the issue date of Cheque / DD through which challan is paid.
These details get updated on individual TCS entries. Challan details can be changed before filing of eTCS returns. Once the return is filed, any changes in the challan details can be done only through C2/C3 correction.
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TCS Challan Register

NAVIGATION: General Ledger Periodic Activities TCS TCS Challan Register
This window will show Challan wise TCS details. In this window, you will update the challan information with the following details: 1 2 3 Interest Amount Others TCS deposited by Book-entry (Boolean, with default value No)
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Field
Interest Amount
Comments
TCS interest amount is paid to the government, when TCS has not been paid or collected on or before the due date. After entering the interest amount in Update Challan Register, it will be simultaneously updated in Challan Register and Quarterly Return 27EQ .
Others
TCS Others is paid to the government, when the user deposits the TCS amount, but does not debit to any customer account or other cases. The amount, entered in this field can be updated from Update Challan Register and it would simultaneously be updated in Challan Register and Quarterly Return 27EQ.
Paid by Book entry
This field is relevant, when the collection of TCS is made by the government or, by any person on behalf of the government, from the customer. A check mark in this field shows the TCS has been paid through book entry and simultaneously TCS amount and challan details will be updated in challan registers and Quarterly return 27EQ.
Generation of TCS Certificate

TCS certificates need to be issued to the buyers from whom TCS has been collected. These are generated with a unique serial number.
NAVIGATION: General Ledger Periodic Activities TCS Generate TCS Certificates
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Click Functions Generate Certificate Nos.
Field
Party type
Comments
Specify whether party type is either Customer or Party. Select the Customer No. /Party from the available list based on the Party type filled above.
Party
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Field
TCS Type
Comments
Select the TCS Type applicable.
Monthly Certificate
Checkmark if generating a monthly certificate for the customer/party.
Starting Date, Ending Date
Specify the date range for the generation of certificate.
The Certificate Nos. would be generated for TCS entries from the No. series defined in the TCS Group setup.
To generate report 27D, click Functions27D
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TCS 27D
Field
Duplicate
Comments
A checkmark means that the certificate can be used as a Duplicate copy. The word DUPLICATE will also appear on the TCS certificate, that is, Form 27D.
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Form 27EQ
NAVIGATION: General Ledger Periodic Activities TCS Form 27EQ
Field
TCAN Location
Comments
Select the T.C.A.N. No from the look up list for which TCS to be generated.
Report Frequency
Select the Quarters from the drop down list for which 27EQ is to be generated .The available options of quarters are (Quarter 1, Quarter 2, Quarter 3, and Quarter 4)
TCS Accounting Period
Select the Financial Year from the lookup list for which TCS is to be generated.
Full Name
Specify the name of the person whose name will be printed on the Report 27EQ.
Designation
Specify the designation of the person whose name will be printed on the Report 27EQ.
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Field
Printing date
Comments
Specify the date on which the Report 27EQ will be printed.
Generate eTCS
For generating the eTCS in text format as required by the Income Tax Department, place a checkmark in 27EQ. eTCS return is furnished in a CD / floppy duly filled with Income Tax Department and signed Form 27 B in physical form.
NAVIGATION: General Ledger Periodic Activities TCS Generate eTCS
After you click Generate eTCS, a new window opens where you need to define certain information for which eTCS is to be generated.
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Field
File Name
Comments
In this field, you specify the path where the eTCS in text format is saved. For example, Desktop, My Documents, C:\, or D:\. Input filename should not be more than 12 characters (including the .txt extension) and should not contain any special characters. For example, a colon or a slash, otherwise at the time of passing text file through FVU it will show an error: File name is too long. An example of a valid filename is FORM27EQ.txt.
TCAN Location
Select the T.C.A.N. No from the look up list for which the 27EQ in text format will be generated.
Report Frequency
Select the quarter from the drop down list.
Financial Year
Choose Financial Year from the look up list.
Full Name
Specify the name of the person whose name will be printed on the Report 27EQ.
Designation
Specify the designation of the person whose name will be printed on the Report 27EQ.
Printing date
Specify the date on which the Report 27EQ is printed.
This process will create eTCS return in text format for a period and also generate 27B report as per the specified format. This process cannot be run if the generation for 27EQ report has not been run for at least once.
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You have the option to run only the 27EQ report without generation of eTCS. After filing with the government, you need to click File eTCS to update the file status to mark the entries as filed.
The following information will be entered for updating the status of the return 27EQ: Quarter Financial year Filing Date Provisional Receipt No. eTCS filed will run only under the following conditions: The Report selected is Report 27EQ The quarter selected in the field Period is in open status that is, the eTCS Filed for the Report selected for the relevant period is not marked. TCS report has been run once. The program will capture the following information: 1 2 eTCS Filed ( Yes or No) Date of filing
Return Status displays information about eTCS returns and revised returns that have been filed. The information will be displayed financial year and Quarter wise.
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You can view all the Previous RRR Nos. defined for the quarter through the lookup.
Correct 27EQ Entries

There are six different types of Correction Statements that can be furnished by the deductor for various correction types. These are as follows. C1: Correction in Deductor / Collector Details (excluding TAN) C2: Correction in Deductor/Collector (excluding TAN) and / or Challan Details C3: Correction in Deductor/Collector (excluding TAN) and / or Challan Details and / or Deductee Details C5: Correction of PAN of Deductee. C9: Addition of Challan(s) Y: Cancellation of statement to be made for rectification of Deductor/Collector TAN In a C1 correction statement a deductor can update its PAN, name, demographic details, responsible persons details, and type of deductor. Details mentioned in the regular statement or last correction statement furnished will be updated with the details provided in the current correction statement. Hence fields where no corrections are required should contain values as mentioned in the regular or last correction statement. A C2 correction statement can be furnished when: There are corrections only in challan detail (CD) records OR There are corrections in challan detail (CD) records and in deductor details (except TAN) (BH), like PAN, name, demographic details, responsible persons details, type of deductor, etc. A C3 correction statement can be furnished when: There are corrections only in deductee detail (DD) records or, There are corrections in deductee detail (DD) records and challan detail (CD) records and/or deductor details (except TAN) like PAN, name, demographic
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details, responsible persons details, type of deductor, and so on. Details mentioned in the regular or last correction statement furnished will be updated with the details provided in the current correction statement. A C5 correction statement can be furnished when: There are updation in deductee PAN, that is, a valid 10-digit PAN to be replaced in place of PANINVALID, PANNOTAVBL and PANAPPLIED or A valid 10-digit deductee PAN stated in the regular or last corresponding statement to be replaced with another valid 10-digit PAN. Details mentioned in the regular or last correction statement furnished will be updated with the details provided in the current correction statement. A C9 Correction Statement can be furnished when: A new challan along with underlying deductee records (if any) is to be added to the regular statement. A Y Correction Statement can be furnished when: There is a change in the TAN number of the deductor / collector. The corrections statements can be furnished as a single statement. Statements with multiple corrections are called Multiple Batch-Correction Statement. Each type of correction in a Multiple Batch-Correction Statement is termed a Batch. Multiple Batch Correction Statement can contain various corrections pertaining to corrections in the regular statement furnished (same TAN, Form no., Period, F.Y., A.Y.) only. For example, if there are different types of corrections in different forms (Form 24Q / 26Q / 27EQ) for the same TAN and Periodicity, separate files with respective batches need to be furnished for each kind of form. A Multiple Batch Correction Statement contains a File Header (FH) record. There will be multiple Batch Header (BH) records depending on the number of batches (C1, C2, C3, C5, C9). There are various combinations in which a Multiple Batch Correction Statement can be prepared and furnished. A Multiple Batch Correction Statement can be furnished only for C1, C2, C3, C5 and C9 type of Correction Statements. Y type of Correction Statement should be furnished separately. It cannot be part of Multiple Batch Correction Statement. In case of a Multiple Batch Correction Statement, separate provisional receipts will be generated for each batch within the statement. For example, if there are three batches like C5, C3, and C9 then, three separate provisional receipts would be generated. A new form is available for corrections in the Quarterly Statement. You need to enter the financial year and the quarter for which you want to post the corrections. The form will display the entries from 27EQ table for particular quarter with all the details including challan and invoice details. The corrections in a return will be allowed only when the original return has been filed.
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NAVIGATION: General LedgerPeriodic ActivitiesTax Collected at SourceCorrect 27EQ Entries
Field
Quarter
Comments
Select the Quarter for which correction is to be done (Q1, Q2, Q3, Q4)
Financial Year
Financial year for which correction is done.
Correction of
Select type of correction from the dropdown with values Collector/ Challan/ Party/ Collector T.C.A.N.
You can then make corrections for the respective entries in the form. If Correction is to be made on Collector Record, the following Form will open.
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If Correction is to be made on Challan Record, the following Form will open.
If Correction is to be made on Party Record, the following Form will open.
If Correction is to be made on Collectors T.C.A.N., the following form will open:
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Revised Form 27EQ

Once the corrections are done, a form is provided for the generation of revised 27EQ.
NAVIGATION: Financial Management General Ledger Periodic Activities Tax Collected at Source Revised Form 27EQ
.
Field
TCAN Location
Comments
Select the T.C.A.N. No from the look up list for which the Revised 27EQ return will be generated.
Report Frequency
Choose Quarter from the drop down list for which revised 27EQ will be generated. Select the financial year from the look up list for which 27 EQ return to be generated.
Financial Year
Full Name
Specify the name of the person, whose name will be printed on the Revised 27EQ return. Specify the designation of the person, whose name will be printed on the Revised 27EQ return
Designation
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Field
Printing date
Comments
Specify the date on which the Revised 27EQ return will be printed.
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Generate Revised eTCS

After doing specific corrections, you can generate eTCS through Generate Revised eTCS for 27EQ.
NAVIGATION: Financial Management General Ledger Periodic Activities Tax Collected at Source Generate Revised eTCS
A form will be opened where you need to define various filter conditions for the generation of revised 27EQ.
A Multiple Batch Correction Statement can be furnished only for C1, C2, C3, C5 and C9 type of Correction Statements. Y type of correction statement should be furnished
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separately. It cannot be part of Multiple Batch Correction Statement. Hence for a correction entry involving C1, C2, C3, C5, C9 and Y type of corrections, three different eTCS files need to be created. 1. eTCS for C1, C2, C3, C5 or C9 corrections 2. eTCS for Y type corrections 3. eTCS for regular Y Revised 27B will be generated with the generation of Revised eTCS After preparation of the Correction Statement the same is to be validated through the File Validation Utility (FVU). The procedure for validation is the same as that for regular statements. Thereafter, furnish the validated correction statement with a TIN-FC or directly through the NSDL web-site (www.tin-nsdl.com). The Revised eTCS can be filed for a specific quarter.
This option requires following information to be entered: Quarter Financial year Date of filing Provisional Receipt No. In case of a Multiple Batch Correction Statement separate provisional receipts will be generated for each batch within the statement. For example, if there are three batches like C5, C3, and C9, three separate provisional receipts will be generated. You can enter multiple provisional receipt nos. in the field. The last Provisional Receipt No. will be used for generation of Batch Header.
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The program will maintain the full revision history of the following 1 2 3 4 Records modified Number of times modified Dates of filing of revised returns Receipt No. of Previous Return.
Return Status will display Revised Returns that have been filed. The data will be displayed according to Financial Year and Quarters.
You can view all the Previous RRR No.s defined for the quarter through the lookup.
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Reports
NAVIGATION: TCS Reporting: Financial ManagementReportsTCS Reporting
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Issued TCS Certificates
This report shows all the TCS certificates generated for the TCS Party based on the filters defined above.
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TCS Challan Register
This report shows the TCS Challan Register details based on the filters defined above.
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TCS Entries
This report shows the invoice wise details for Excise amount, Sales Tax Amount, and TCS amount.
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Appendix
Example 1:
M/S ABC has sold the Scrap to M/S XYZ for Rs. 10,000/(1% as TCS rate, 10% Surcharge rate, 2% eCess rate) Following entry will be posted in the program. M/S XYZ A/c To TCS Payable A/c To Sales A/c Dr. Cr. Cr. Rs. 10112 Rs. 112 Rs. 10000
Customer (M/S XYZ) Account will be debited by Rs. 10112/ABC will deposit TCS to the government authority by passing the following entry. TCS Payable- A/C To Cash / Bank A/C Dr. Cr. Rs.112 Rs112
Now M/S ABC will receive the payment from M/S XYZ. Bank A/c To M/S XYZ A/c Dr. Cr. Rs.10112 Rs.10112
ABC will issue a TCS certificate (form 27D) for Rs. 112 to XYZ.
Example 2:
M/S ABC has sold the Scrap to M/S XYZ for Rs. 10,000/- and received the advance payment from M/S XYZ. (1% as TCS rate, 10% Surcharge rate, 2% eCess rate) Following entry will be posted in the program. Bank A/c To TCS Payable A/c To M/S XYZ A/c Dr. Cr. Cr. Rs.10000 Rs. 111 Rs. 9889
In this case, a grossing up method will be used for calculation of TCS amount on Rs.10000. At the time of raising Invoice to the customer the following entry will be posted. M/S XYZ A/c Dr. Rs.9889
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To Sales A/c
Cr.
Rs.9889
ABC will deposit TCS to the government authority by passing the following entry. TCS Payable- A/C To Cash / Bank A/C Dr. Cr. Rs.111 Rs111
Example 3:
Raising Invoice to M/S XYZ against partial Advance received from the customer (with reference to Example 2) In this case, if the invoice has to be made for Rs.20000 for M/S XYZ and already a payment of Rs.10000 received against the invoice. The program will calculate TCS on the remaining amount. Rs.20000-Rs.9889 = Rs.10111. Entry will be. M/S XYZ A/c To TCS Payable A/c To Sales A/c Dr. Cr. Cr. Rs.10224 Rs.113 Rs.10111
ABC will deposit TCS to the government authority by passing the following entry. TCS Payable- A/C To Cash / Bank A/C Dr. Cr. Rs.113 Rs113
Example 4:
Correction in TCS: A regular statement containing four challans / transfer voucher details where: Challan 1 has 10 Party records Challan 2 has 5 Party records Challan 3 has 15 Party records Challan 4 has 20 Party records Subsequently, there are corrections in the following records in the regular statement; Corrections in Collector Details In challan 1, update CIN Details
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In challan 3, CIN Details to be rectified and for underlying party 4 incorporate 10digit PAN instead of PANINVALID in the Party PAN field, for party 10 replace valid PAN with another valid PAN In Challan 4, add a party record. An additional challan with two underlying parties needs to be added. There are no changes in challan 2 or its underlying party records. The sequence of these batches (correction statements in a file) will be as follows: File header record (FH) Batch Header record 1 (BH) C5 (updation of party PAN) Challan detail record 3 (CD) Party detail record 10 (DD) update valid to valid PAN Batch Header record 2 (BH) C2 (updation of Challan) with batch updation indicator 1 for corrections in Collector Details. Challan / Transfer Voucher Detail record 1 (CD) updation of CIN Batch Header record 3 (BH) C3 Challan / Transfer Voucher Detail record 3 (CD) Party Detail record 4 (DD) update PANINVALID with valid PAN Challan / Transfer Voucher Detail record 4 (CD) Party Detail record 21 (DD) addition of a Party Batch Header record 4 (BH) C9 addition of a Challan Challan / Transfer Voucher Detail record 5 (CD) Party Detail record 1 (DD) Party Detail record 2 (DD) If there are no corrections in Challan or Party Details except for updation of party PAN and corrections in Collector Details along with addition of Challan, the sequence will be: C1, C5, and C9 A Multiple Batch Correction Statement can be furnished only for C1, C2, C3, C5 and C9 type of Correction Statements. Y type of Correction Statement should be furnished separately. It cannot be part of Multiple Batch Correction Statement. In case of a Multiple Batch Correction Statement separate provisional receipts will be generated for each batch within the statement. For example, if there are three batches like C5, C3, and C9 three separate provisional receipts will be generated.
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Microsoft Business Solutions Navision 4.0- VAT Opening
Table of Contents
Overview of Functionality......................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................3 Reports..............................................................................................................3 Value Added Tax Opening ....................................................................................3 Setup for VAT Opening.........................................................................................4 Source Code Setup ...........................................................................................4 VAT Batches .....................................................................................................4 VAT Opening Journal............................................................................................5 Input VAT Opening (Normal Item) .....................................................................8 Viewing the Posted Transaction ....................................................................9 Input VAT Opening (Capital Goods) - VAT Deferment with Settled Period. ....12 Viewing the Posted Transaction ..................................................................13 Input VAT Opening (Fixed Asset) - VAT Deferment without Settled Period ....15 Viewing the Posted Transaction ..................................................................16 Output VAT Opening (sale) .............................................................................18 Viewing the Posted Transaction ..................................................................18
VAT Opening functionality facilitate the entry of opening balances in the statuary records which helps in maintaining and generating appropriate & accurate statutory records and reports using the existing Navision Localization feature.
Detailed Setup
Detailed setup of Sales Tax is required for entering opening balances of VAT in the statutory records.
Following are the comprehensive functionalities covered under VAT Opening. Opening Balances of Input VAT. Opening Balances of VAT Deferment. Opening Balances of Output VAT.
Reports
The existing reports of VAT for examples: Intrastate Purchase/Sales, Purchase Book, Sales Book, and VAT Deferment will get updated with opening transaction.
Value Added Tax Opening

To update the opening balances of VAT, the user has to create the Sales Tax Setup in the following ways: Create State Code with Tax Account (Sales), Tax Account (Purchase), and VAT Deferred Account No. in the States setup. Mention the deferments period in the Sates setup. Create tax group code in the Tax Groups setup. Create tax jurisdiction with tax type VAT and map it with state code in the Tax Jurisdiction setup. Make the combination of tax jurisdiction with tax group code in the Tax Details setup and define the VAT % in the Tax below Maximum field with some effective
date. Place a check mark in the Capital Goods field and in the Creditable Goods field. Create the Tax Area Code and select it in the Tax Area Location setup. Mention the same state code in Vendor/Customer and Location card.
Setup for VAT Opening Source Code Setup

Navigation:
Financial Management General Ledger Setup Trial Codes Source Code Setup
Choose the source code from the lookup list in the VAT Opening field.
VAT Batches
NAVIGATION: Financial Management Setup Sales Tax VAT Batches
You must create batch in the VAT Batches form before entering the opening balances of VAT.
Create the VAT batches by entering the following fields: Fields Batch Name Description No. Series Description Define the code of the batch, you want to create (For example: Opening). Define the description of the code, you have entered. Choose the number series from the lookup list. VAT opening journal will be posted with this number series. Choose the source code from the lookup list.
Source code
VAT Opening Journal

Navigation:
Financial Management General Ledger Periodic Activity Value Added Tax VAT Opening Journal
A new Interface has been provided to enter the opening balances of VAT.
Fill in the fields according to these guidelines: Fields Transaction Type Description Choose the transaction type from the drop down button. The available options are: Purchase and Sale. This field shows the document number of the selected transaction. This field is editable. This field shows the posting date of the selected transaction. This field is editable. Choose the type from the drop down button. The available options are: G/L Account, Item and Fixed Asset. If you are selecting item for purchase transaction then you have to select the item ledger entry for which you are entering the opening balances. Item Ledger Entry No. No. Choose the item ledger entry from the lookup list for type Item. Choose the number for selected type (Item No., G/L Account No. and Fixed Asset No.). Enter the date of purchase of capital goods in case entering the opening balances of input VAT for the purchase capital item. Source type will automatically display while selecting the transaction type. If transaction type is Purchase then source type will be Vendor and if transaction type
Document No.
Posting date Type
Date of Purchase (Capital Goods)
Source type
Fields Source no. Location Code
Description is Sale then source type will be Customer. Choose the vendor/customer number from the lookup list. Choose the location code from the lookup list. Note: Location state code and vendor/customer state code should be same for entering VAT opening. If state code is blank then company state code should match with vendor/customer state code.
Quantity
Value in the Quantity field will be transferred after selecting item ledger entry number in case of type item. This field is editable.
Unit Price Amount Tax %
Enter the unit price of the Item, G/L Account, and Fixed Asset. The system calculates amount by multiplying quantity with unit price. This field shows the tax percentage that has been defined in the setup This field shows input credit/output tax amount of the transaction. Enter the Non ITC Claimable Usage % if applicable. This is applicable in purchase transactions. This field shows the amount that has been loaded on Item. This field shows the number of deferment settled if the purchase transaction has deferments and some deferments have already been settled. By default the system will show the Tax Account (Purchase), Tax Account (Sales) and VAT Deferred Account number in this field.
Input Credit/Output Tax Amount Non ITC Claimable Usage %
Amount Loaded on Item No. of Deferment Settled
G/L Account No.
Fields Bal. G/L Account No.
Description By default the system will show the Tax Account (Purchase), Tax Account (Sales) and VAT Deferred Account in this field.
Note: You can also post the transactions with dimensions available on the Line menu button in the form.
Input VAT Opening (Normal Item)

There should be item ledger entry for the item in case entering the opening balance of input VAT for normal item.
Enter the following Information in the VAT Opening Journal. Transaction Type: Document No.: Posting Date: Type: Item ledger Entry No.: No.: Description: Source Type: Source No.: Location Code: Quantity: Unit Price: Amount: Tax %: Input Credit/Output Tax Amt.: G/L Account No.: G/L Account No.: Post the VAT Opening Journal. Purchase OP000127 19/03/07 Item 1475 (Selected from item ledger entries) 1000 Bicycle. Vendor 10000 Blue 10 1000 10000 10 1000 (10% of 10000) 5912 (Tax Account (Purchase)) 5912 (Tax Account (Purchase))
Viewing the Posted Transaction

Navigation:
Financial Management General Ledger History Navigate
G/L Entry
The program creates the following G/L entry: Particulars Sales Tax Account (Purchase) Sales Tax Account (Purchase) Type DR CR Amount(Rs) 1000 1000
Detailed Tax Entry
The system will create detailed tax entry with Input credit/output tax amount and with other details. Further this transaction will be available in VAT settlement form for doing VAT settlement. Note 1: User can also use the Type as G/L Account to enter the opening of Input VAT. Note 2: In case of purchase of item for Export or Deemed Export place a check mark in the Location card in Export or deemed export filed and enter the opening balances. The
system will create the detailed tax entry with Export or Deemed export filed true and also show the amount of ITC Input VAT Credit (Exports Sales) in VAT Settlement form. Note 3: If user wants to enter the balances of Input VAT for items then first he/she has to enter/create Item Ledger entry. If user wants to enter the balances of Input VAT consolidated then he/she can use G/L Account for that, in this case no need to create item ledger entry.
Input VAT Opening (Capital Goods) - VAT Deferment with Settled Period.
In case of entering the opening balance of input VAT for capital goods there should be item ledger entry for that item. In the states setup 12 deferments periods has been defined.
Enter the following Information in the VAT Opening Journal. Transaction Type: Document No.: Posting Date: Type: Item ledger Entry No.: No.: Description: Date of Purchase (capital Goods): Source Type: Source No.: Location Code: Quantity: Unit Price: Amount: Tax %: Input Credit/Output Tax Amt.: No. of Deferments settled: G/L Account No.: G/L Account No.: Purchase OP000130 19/03/07 Item 1476 (Selected from item ledger entries) 80206 (FA is true in Item card) Webcam 01/03/06 Vendor 10000 Blue 10 50000 500000 10 50000 (10% of 500000) 12 (from 01/03/06 to 28/02/07 deferments has been settled) 5913 (VAT Deferred A/C) 5913 (VAT Deferred A/C)
Post the VAT Opening Journal.

Navigation:
G/L Entry
The program creates the following G/L entry: Particulars VAT Deferred A/C VAT Deferred A/C Type DR CR Amount(Rs) 50000 50000
Detailed Tax Entries
The system will create 13 detailed tax entries from number 0 to 12. For first 12 entries the Settlement field will be marked True (from no. 0 to 11). The last entry will be available for VAT settlement.
Input VAT Opening (Fixed Asset) - VAT Deferment without Settled Period
Case: Entering the opening balance of input VAT for fixed asset. In the States setup, 12 deferments periods have been defined.
Enter the following Information in the VAT Opening Journal. Transaction Type: Document No.: Posting Date: Type: Item ledger Entry No.: No.: Description: Date of Purchase (capital Goods): Source Type: Source No.: Location Code: Quantity: Unit Price: Amount: Tax %: Input Credit/Output Tax Amt.: No. of Deferments settled: G/L Account No.: G/L Account No.: Post the VAT Opening Journal. Purchase OP000131 19/03/07 Fixed Asset Blank FA000050 Conveyor Belt 01/03/07 Vendor 10000 Blue 1 50000 50000 10 5000 (10% of 50000) 0 5913 (VAT Deferred A/C) 5913 (VAT Deferred A/C)

Navigation:
G/L Entry
The program creates the following G/L entry: Particulars VAT Deferred A/C VAT Deferred A/C Type DR CR Amount(Rs) 5000 5000
Detailed Tax Entries
The system will create 13 detailed tax entries from number 0 to 12. And distribute the tax amount as Input Credit/Output Tax amount in 13 installments. These transactions will be available for VAT settlement accordingly.
Output VAT Opening (sale)

In case of entering opening balance of Output VAT
Enter the following Information in the VAT Opening Journal. Transaction Type: Document No.: Posting Date: Type: Item ledger Entry No.: No.: Description: Source Type: Source No.: Location Code: Quantity: Unit Price: Amount: Tax %: Input Credit/Output Tax Amt.: G/L Account No.: G/L Account No.: Post the VAT Opening Journal. Sale OP000132 19/03/07 Item Blank 1000 Bicycle Customer 10000 Blue 10 4000 40000 10 4000 (10% of 40000) 5911 (Sales Tax Account (Sale)) 5911 (Sales Tax Account (Sale))

Navigation:
G/L Entry
The program creates the following G/L entry: Particulars Sales Tax Account (Sale) Sales Tax Account (Sale) Type DR CR Amount(Rs) 4000 4000
Detailed Tax Entry
The system will create detailed tax entry with input credit/output tax amount with negative value and this will be available in the VAT Settlement form for doing VAT settlement. Note1: The user can also enter the opening balances of Output VAT for type G/L Account and Fixed Asset. Note 2: Further all transactions means; purchase and sale will be available for VAT settlement in the VAT Settlement form according to the tax period. Note 3: Existing VAT reports for example: Intrastate Purchase/Sales, Purchase Book, Sales Book and VAT Deferment will also show the opening transactions.
Microsoft Business Solutions Navision 4.0- Excise Reports
Table of Contents
Overview of Functionality......................................................................................4 Detailed Setup...................................................................................................4 Comprehensive Functionality ............................................................................5 Reports..............................................................................................................5 Annexure 58 .........................................................................................................5 Setup Required .................................................................................................5 Viewing the Posted Transaction ....................................................................7 Viewing the Ledger Entries ..........................................................................10 Viewing the Posted Transaction ..................................................................14 Sample Register .................................................................................................19 Setup Required............................................................................................19 Viewing the Posted Transaction ..................................................................21 Waste & Scrap Register......................................................................................29 Setup Required ...............................................................................................29 Viewing the Posted Transaction ..................................................................31 Inter Unit Transfer Register.................................................................................35 Setup Required ...............................................................................................35 Viewing Inter Unit Transfer Register report..................................................37 Daily Register......................................................................................................40 Setup Required ...............................................................................................40 Viewing Daily Register report.......................................................................43 Monthly Register .................................................................................................46 Viewing Monthly Register report ..................................................................46 ER-1....................................................................................................................49 Set ups for ER-1..............................................................................................49 Company Information ......................................................................................49 Assigning the type of unit to E.C.C. Nos. ........................................................50 Viewing the Ledger Entries ..........................................................................55 Viewing the Ledger Entries ..........................................................................59 Viewing the Ledger Entries ..........................................................................66 Report .............................................................................................................72 ER 1 ................................................................................................................72 ER-2....................................................................................................................78 Set ups for ER-2..............................................................................................78 Viewing the Ledger Entries ..........................................................................80 Viewing the Ledger Entries ..........................................................................84 Viewing the Ledger Entries ..........................................................................91 Report .................................................................................................................98 ER 2 ................................................................................................................98
This feature is developed for the user engaged in manufacturing activity and is submitted the ER1 or ER 2 return monthly with the excise authority. There are some records which need to be maintained by the user as per excise rule though it is not necessary to be submitted with excise authority like Annexure 58 (Accountal of return goods) Registers for Sample Wastage and Scrap Register Inter Unit Transfer Register Raw Material and Component Register Daily Raw Material And Component Register Monthly
Detailed Setup
Annexure 58
The user needs to create Excise setup for the calculation of excise duty and also needs to create Process carried out setup in excise setup.
Sample Register
The user needs to create Excise setup for calculating excise duty and also needs to create Location card with a check mark in the Testing Location field.
Waste & Scrap Register

The user needs to create Excise, Sales Tax, and TCS setup for calculating all taxes for scrap item and also needs to place a check mark in the Scrap field in the Item card.
Inter Unit Transfer Register

The user needs to create Excise setup for calculating excise duty and also needs to select Intermediate goods in the Item card based on E.C.C number.
Daily Register
The user needs to create Excise setup for calculating excise duty and also needs to create nature of Disposals setup in the Excise setup. The user needs to select Intermediate goods or raw material based on E.C.C number in the Item card
ER 1
In Company Information master, place a check mark in the Large Tax Payer Unit field if the assessee is coming under Large Tax payer under excise rule.
Choose large tax payer city from the look up list if the assessee is coming under Large Tax Payer. In the Excise set up E.C.C no assign the type of unit with E.C.C number. Choose the type of unit from the drop down box. The available options are: Manufacturer and 100 % E.O.U. In the Excise set up E.C.C no .series assign the number series for LTU RM and LTU IM In the Item card, define the type of item as Intermediate or Raw Material based on the E.C.C number.
ER 2:
In the Excise set up E.C.C no assign the type of unit with E.C.C number. Choose the type of unit from the drop down box. The available options are: Manufacturer and 100 % E.O.U.
Following reports are handled by the application Annexure 58 (Accountal of return goods) Registers for Sample Wastage and scrap register Inter Unit Transfer Register Raw Material and Component Register Daily Raw Material and Component Register Monthly ER 1 ER 2
Reports
Annexure 58
This report contains the details of Excisable goods returned from customer and their re dispatch if any. Annexure 58 report provides quantitative and excise details of Return of Excisable goods and re dispatch if any.
Setup Required
User has to create Excise setup for calculation Excise duty and also needs to create Process carried out setup in excise setup.
Process Carried Out

When returned goods have been re-dispatched, the process carried out to rectify the defected goods should be mentioned in the returned goods register. In the process carried out window define the type of process this will select at the time of re-dispatching the return goods.
Navigation Financial Management Setup Excise Process Carried Out
Field
Code
Description
Enter the code for process carried out. The program accepts the values which are, Unique Up to 10 characters Enter the description of process carried out code.
Description
Calculation of Excise through Sales order/Invoice for Excisable Goods Navigation: Financial Management Setup Excise Process Carried Out
To calculate Excise, fill the fields in the Sales Order window as follows:
On the Header:
No: Structure: On the Line: Type: No.: Description: Quantity: Unit Price: Line Amount: Calculate Structure Press F9 to view the excise amount Item 1000 Bicycle 10 4000 40000 10000 Excise
Post the Sales order.
Navigation: Sales & Marketing History Posted Invoice
G/L Entry
The program creates the following entry: Particulars Customer Excise Payable Sales Type Dr Cr Cr Amount(Rs) 57920 17920 40000
System will calculate Excise according to the Excise posting setup. Calculation of Excise in case of sales Return through return Order In case when goods has been returned back by the customer for some process like repair.
Navigation: Sales & marketing Order Processing Return Orders
Field Description: Field Identification Mark Description Define identification mark for the returned goods. For example-returned goods with identification mark of colour or lot no.

Customer: Location: Structure: Applies-to Doc. Type: Applies-to Doc No: Item: Quantity: Direct Unit Price: Line Amount: Return reason Code: Identification mark: Calculate Structure Values. Post the Return Order. 10000 Location 4 Excise Invoice 103411 1000 10 4000 40000 (The program will calculate it.) P-repair Red Coloured Bicycle

Navigation: Sales & Marketing Order Processing History Posted Credit Memos
G/L entry
The program creates the following entry: Particulars Customer Excise Payable Sales Type Cr Dr Dr Amount(Rs) 57920 17920 40000
Incase of re-dispatch of returned goods Create Sales Order for resale of 5 quantities of bicycle out of 10 returned quantity, and sale of 1 quantity of touring Bicycle. Also change the Unit Price of bicycle from 4000 to 5000. On the header level of sales order place a check in Re-Dispatch field and select the Return receipt No. from Posted return receipt Lines. Navigation: Sales & marketing Order Processing Orders
Field Description (Header): Field Re-Dispatch Description Place a check mark in the re dispatch field when the returned goods has re dispatched to the customers.
Return receipt No.
This field will be visible only when the Re dispatch field is true. Choose the return receipt no from which goods has returned to the customers.
Field Description (Line): Field Process Carried out Description Select the Process carried out from lookup list.
On the Header:
No: Structure: Re-Dispatch: Return Receipt No.: On the first Line: Type: No.: Description: Quantity: Unit Price: Line Amount: On the Second Line: Type: No.: Description: Quantity: Unit Price: Line Amount: Calculate Structure Press F9 to view the excise amount Item 1001 Touring Bicycle 1 4000 4000 Item 1000 Bicycle 5 5000 25000 10000 Excise Place a check mark (Shipping Tab) 107049 (Shipping Tab)

G/L Entry
The program creates the following entry: Particulars Customer Excise Payable Excise payable Sales Sales Type Dr Cr Cr Cr Cr Amount(Rs) 41992 1792 11200 4000 25000
System will create two excise entries and also update the Annexure 58 report. Note: The user can also post the transaction from Sales Invoice.
Preview Annexure-58 report Navigation: Financial Management General Ledger Reports Excise Reporting Annexure-58
Fields
ECC No
Description
Choose the ECC number from the lookup list for which you want to generate the report. Choose customer no for which report is to be generated. Choose item no for which report is to be generated. Choose Posted Return Receipt No. for which report is to be generated. Mention the starting date of report is to be generated Mention the ending date of report to be
Customer No
Item No
Return Rcpt No
Start Date
End Date
Fields
Description
generated.
The report contains following columns Sr 1 2 3 Column Heading

Sr. No Name & address, ECC No. Of Manufacturing unit Details of duty paying Documents & Date Description, Qty. of Goods Received Identification Marks Name, Address, ECC No. of the Customer Purpose For Which Received
Comment
This column contains Sr. No of report lines. This field contains Name, Address and ECC No of the Location. This column contains details of sales return document. The program populates external document no and posting date of sales return document in this column. This column contains description and quantity of goods returned. This column contains Identification mark of goods returned. The program copies the value from Return Receipt lines. This column contains Name, Address, ECC No of the customer from whom goods returned. This column contains purpose for which goods returned from customer. The program populates
4 5 6 7
Process Carried Out Whether any excisable goods are used in repairs/ replacements.
10 11
Duty Paid on such additions/ replacements CENVAT Credit Availed on returned goods CENVAT Credit Reversed Details of Invoice Clearance
12
13
description of return reason code, which is selected in lines of sales return document. This column contains process carried out on item resold. The program populates description of Process Carried Out code, which is selected in lines of sales order/invoice. This column contains the value Yes or No. Yes: If duty payable on re dispatched goods is more than proportionate duty reversed (col 11 ) on sale return then program populates value yes in this column No: If duty payable on re dispatched goods is not more than proportionate duty reversed (col 11 ) on sale return then program populates value No in this column This column contains the value excess duty paid over proportionate duty reversed in col 11 Cenvat Credit Reversed. This column contains the value of CENVAT credit availed on returned goods. The program calculates the value as proportionate value of excise duty paid on original sale. This column contains the value of CENVAT Credit Reversed on resale. The program populates the value on the basis of proportionate value of excise credit taken on Sales Return. This column contains the details of Resale: Customer Name, Sales Invoice No, Posting date of sales document and Quantity of re sold goods This column contains the details of additional item sold at the time of resale.The program populates the description of such item(s) and Quantity
14
15
Qty. of description of goods recleared separate account for disposal of replaced (defective parts removed) parts should be maintained. Signature of assessee or his authorised agent
The program keeps this field blank for manual signature of assessee or his authorised agent.
Sample Register
This report contains details of Excisable item sold as free sample or send for laboratory test or returned back from laboratory test. This report is in two sections: Free Supply Lab Test
Setup Required
User has to create Excise setup for calculation Excise duty and also needs to create Location card with Testing Location True Location Card
Navigation: Warehouse Setup Locations
Field Description: Field Testing Location Description Place a check mark in the Testing Location field when any sample goods has been sent to the out side premises for laboratory test and which will come after testing the sample goods.
Note: It will help to identify how much goods have been sent for the testing purposes.
Calculation of Excise in case of Free Supply For Free Supply section program generates report on the basis of Posted Sales Order and Sales Invoice where Free Supply field on Sales Header is checked. When Free Supply field in Sales Order or Sales Invoice header is checked, the program populates value in Line Discount % column of Sales Order/Invoice line as 100. Thus Line amount Excl VAT becomes nil. Navigation: Sales & marketing Order Processing Orders
On the Header:
No: Structure: Free Supply: On the first Line: Type: No.: Description: Location: Quantity: Unit Price: Line Amount: Line Discount %: Calculate Structure
10000 Excise Place a check mark
Item 1000 Bicycle Blue Loc 10 4000 Nil 100
Press F9 to view the excise amount

G/L Entry
The program creates the following entry: Particulars Sales Discount Excise payable Excise Expense Type Cr Dr Cr Dr Amount(Rs) 40000 40000 4320 4320
In this case you have to enter the Excise expense account in general ledger setup.
Incase of Lab Test Lab Test section of Sample Register report provides details of excisable goods send to lab test location and returned from lab test location. In this if excisable goods has been purchased in Blue Loc. And after wards transferred to testing location through Item Reclass journal.
Item Reclass journal Navigation: Warehouse Inventory Item Reclass. Journal
Field Description Field Laboratory Test Description Place a check mark in the laboratory Test field when any item is sending for laboratory test to testing location.

Item No.: Location: New Location: Quantity: Laboratory Test: Post the Item Reclass. Journal. After posting program will decrease the quantity in Blue location and increase the quantity in yellow location. Goods return from testing location after laboratory test. 10 quantities have been sent for laboratory test and 5 have been received from testing location. Receive the goods through item Reclass journal by applying the original entry. 1000 blue Loc (Enter the location from where goods have to be transferred) Yellow (Enter the testing location, to which goods has to be transferred) 10 Yes
Item Reclass journal Navigation: Warehouse Inventory Item Reclass. Journal

Item No.: Location: New Location: Quantity: Laboratory Test: Applies-to entry: Post the Item Reclass. Journal. 1000 Yellow (Enter the testing location) Blue Loc (Enter the original Location) 5 Yes 2139
After posting, the program will transfer 5 quantities from Yellow location to Blue location.
Report Sample Register Report NAVIGATION: Financial Management General Ledger Reports Excise Reporting Sample Register
FREE SUPPLY tab Fields Description: Fields

No. Sell-to Customer No.
Description
Select the No. of item for which you want to generate the report. Select the customer No. for which you want to generate the report.
LAB TEST tab Fields Description: Fields

Item No. Source No.
Description
Select the Item No. for which you want to generate the report. Select the source No. for which you want to generate the report.
Options tab Fields Description: Fields

E.C.C. No. Start Date End Date
Description
Select the E.C.C. No. for which you want to generate the report. Enter the start date for which you want to generate the report Enter the end date for which you want to generate the report
Report column
Description of various columns in Sample report for Free Supply section is as follows Sr 1 2 3 Column Heading Date Item Description Type of Sample Comment This column contains the date on which free sample sold. This column contains the description of Item sold. This field contains the text FREE SUPPLY. Since in this section of report the program consider Sales Invoice lines where value in Free Supply field is checked, the program populates the text FREE SUPPLY Not relevant for FREE SUPPLY section This field contains the Name of customer. This field contains Sales Invoice No. This field contains the Quantity of Free Sample sold. This field contains the value of Assessable amount on which excise duty is calculated. This field contains effective rate excise duty payable. The program calculates the rate as, Excise % = Excise Amount (Col 10) * 100 Assessable Value (Col 8) This field contains the total amount of Excise duty payable. The program copies the value in this field from Excise amount field in Sales Invoice Line. Not relevant for FREE SUPPLY section Not relevant for FREE SUPPLY section Not relevant for FREE SUPPLY section
4 5 6 7 8 9
Name of Testing Location Name of Customer Invoice No Quantity Assessable Value Excise %
10
Excise Amount
11 12 13
Date of Return Quantity Returned Remaining Quantity
The report contains following columns for LAB Test Sr 1 Column Heading Date Comment This field contains the date on which goods send to testing location. The program copies value in this field from posting date field in Item Ledger Entry. This field contains the description of item send to testing location. This column contains the text LAB TEST. Since in this section of report the program consider Item Ledger Entry lines where value in Laboratory Test field is checked, the program populates the text LAB TEST
2 3
Item Description Type of Sample
4 5 6
Name of Testing Location Name of Customer Invoice No
This field contains the name of testing location. Not relevant for LAB TEST section This field contains the Document no on which goods transferred to testing location. The program copies the value in this field from Document No field in Item Ledger Entry. This field contains the Quantity of item transferred to testing location. The program copies the value in this field from Quantity field in Item Ledger Entry. Not relevant for LAB TEST section Not relevant for LAB TEST section Not relevant for LAB TEST section This field contains the date on which goods returned from Testing Location. The program copies the value in this field from Posting Date field in Item Ledger Entry. This field contains the quantity of goods returned from Testing Location. The program copies the value in this field from Quantity field in Item Ledger Entry. This field contains remaining quantity to be returned from testing location. The program populates the value by deducting returned quantity quantities from dispatched quantity
Quantity
8 9 10 11
Assessable Value Excise % Excise Amount Date of Return
12
Quantity Returned
13
Remaining Quantity

This report contains details of Sales of excisable items which are defined as Scrap Item in item card. The program checks whether item is defined as Scrap or not at the time of generating the report. This report is based on Posted Sales Invoice. The program considers only invoiced quantity.
Setup Required
User has to create Excise, Sales tax, TCS setup for calculation of all taxes for scrap item and also needs to place a check mark in scrap field in Item card. Item Card NAVIGATION: Purchase Planning Items
Place a check mark in scrap filed in item card
Calculation of Excise, VAT and TCS on Scrap item through Sales Order/invoice
Navigation: Sales & marketing Order Processing Orders
To calculate Excise, VAT and TCS, fill the fields in the Sales Order window as follows:
On the Header:
No: Structure: On the Line: Type: No.: Description: Quantity: Unit Price: Line Amount: TCS Nature of Collection: Item 1100 Front Wheel 10 1000 10000 A 10000 Taxes (Type in structure is Excise and Sales Tax)
Calculate Structure and calculate TCS Press F9 to view the excise, Tax and TCS amount Post the Sales order.

G/L Entry
The program creates the following entry:
Particulars Sales Sales tax A/C (Sales) Excise payable TCS Payable Customer
Type Cr Cr Cr Cr Dr
Amount(Rs) 10000 900 3480 1507 15887
System will also create Excise entry, TCS entry and Detailed Tax entry with relevant information.
Preview Waste & Scrap Register report
NAVIGATION: Financial Management General Ledger Reports Excise Reporting

Sales Invoice tab Fields Description: Fields

No. Sell-to Customer No.
Description
Select the No. of Item for which you want to generate the report. Select the customer No. for which you want to generate the report.

Description
System will generate the report with all relevant fields of Excise, VAT, charges and TCS.
Inter Unit Transfer Register

This report contains the details of Excisable goods transferred from one location to another.
Setup Required
User has to create Excise setup for calculation Excise duty and also needs to select Intermediate goods in Item card. Item Card NAVIGATION: Purchase Planning Items Item ECC No. /Item Categories.
Select type of Item as Intermediate for E.C.C. no. Transfer Order
Navigation:
Purchase Order Processing Transfer Orders
To calculate Excise, fill the fields in the transfer Order window as follows:
On the Header:
No: Transfer from code: Transfer to Code: In-transit Code: Structure: On the Line: Item No.: Description: Quantity: Transfer Price: Amount: Calculate Structure Post the Transfer Order as Ship and Receive. After posting, the program will create the G/L entries, excise entries in both the locations. 1000 Bicycle 10 1000 10000 1132 Manf. Loc manufact Out. Log Excise
Viewing Inter Unit Transfer Register report

NAVIGATION: Financial Management General Ledger Reports Excise Reporting Inter Unit Transfer Register Generate report for shipping location MANF. LOC

Description
For E.C.C. No. of Shipping location report will show the Issue details, for example, the location you have issued the goods to. Generate report for receiving location MANUFACT

Description
Select the E.C.C. No. for which you want to generate the report. Enter the start date of the date range for which you want to generate the report Enter the end date of the date range for which you want to generate the report
For E.C.C. No. of receiving location report will show the receipt details, for example from which location you have received the goods.
Daily Register
This report contains details of daily movement of inflow and outflow of excisable goods under various heads.
Setup Required
User has to create Excise setup for calculation Excise duty and also needs to create nature of Disposals setup in excise setup.
Navigation Financial Management Setup Excise Nature of Disposals
Fields Description:
Fields Type Description Choose the type of nature of disposal from the drop down box, the option of the nature of disposal are Purchase return ,Transfer shipment, Sale ,Negative adjustment. If the set up for nature of disposal is not defied than in the raw material & component register the field will be populated against the nature of disposal is blank Define the code for the type field and it will be populated in the report as it defined in the code field. Enter the description of code
Code
Description
Item Card NAVIGATION: Purchase Planning Items Item ECC No. /Item Categories.
Also define the type of item as Raw Material in Item card for particular E.C.C. No. In case of Disposal and Wasted & Destroyed In this case post the transaction through item reclass Journal if the items are disposed or Wasted/destroyed.
Item Reclass journal Navigation: Warehouse Inventory Item reclass. Journal
Fields Description: Fields Other Usage Nature of Disposal Description Select the other usage from drop down button. The available options are Disposal, wasted/destroyed. Select the nature of disposal from lookup list.
First Line
Entry type: Item No.: Location: Quantity: Other Usage: Nature of Disposal: Negative Adj. 1000 Blue 50 Disposal Fire
Second Line
Entry type: Item No.: Location: Quantity: Other Usage: Post the Item Reclass. Journal. System will create item ledger entries with negative adj. and also will update the daily register with other usage and nature of disposal. Negative Adj. 1000 Blue 100 Wasted/Destroyed
Viewing Daily Register report

NAVIGATION: Financial Management General Ledger Reports Excise Reporting Daily Register
Item Ledger Entry tab Fields Description:

Fields Location Code Description Select the location code for which you want to generate the report

E.C.C. No. Start Date End Date Item No
Description
Select the E.C.C. No. for which you want to generate the report. Enter the start date of the date range for which you want to generate the report Enter the end date of the date range for which you want to generate the report Select the item no. for which you want to generate the report
System will generate the report with all the relevant information.
The report contains following columns Sr Column Heading Comment 1 Description of Raw This column contains description of item. Material/Component 2 Opening Balance This column contains opening balance of item. 3 Quantity Received This column contains quantity received of item during the period given in report filter. 4 Unit This column contains unit of measure code. 5 Total This column contains total of opening balance and quantity received. 6 Excisable This column contains quantity consumed in the Quantity Goods manufacturing of excisable goods. used in the 7 Other This column contains quantity consumed in the manufactu Goods manufacturing of other goods. re of 8 Nature of This column contains the nature of disposal. Quantity otherwise Disposal disposed 9 Quantity This column contains quantity disposal of other of than consumption or wastage. 10 Quantity wasted or This column contains quantity of item wasted or destroyed destroyed. 11 Closing Balance This column contains closing balance of item at the end of given period. 12 Quantity of Excisable This column contains total output of excisable goods manufactured goods, if any, for which item consumed. 13 Quantity of other goods This column contains total output of other goods, if manufactured any, for which item consumed. 14 REMARKS Program keeps this column blank for remarks. 15 Signature of the Program keeps this column blank for manual Assessee or his agent signature of the assessee or his agent.
Monthly Register
This report contains details of Monthly movement of inflow and outflow of excisable goods under various heads.
Viewing Monthly Register report

Navigation: Financial Management General Ledger Reports Excise Reporting Monthly Register .
Item tab Fields Description: Fields

No
Description
Select the Item No. for which you want to generate the report
Options tab Fields Description:

Fields E.C.C. No. Month Description Select the E.C.C. No. for which you want to generate the report Select the month from drop down button
Fields Year
Description for which you want to generate the report. Enter the year for which you want to generate the report.
System will generate the report on monthly basis. The report contains following columns: Sr 1 2 3 4 5 6 7 Column Heading Date Opening Balance Quantity Received Unit Total Quantity used in the manufactu re of Excisa ble Goods Other Goods Comment This column contains dates of month given in report filter. This column contains opening balance of item. This column contains quantity received. This column contains unit of measure code. This column contains total of opening balance and quantity received. This column contains quantity consumed in the manufacturing of excisable goods. This column contains quantity consumed in the manufacturing of other goods.
9 10 11 12 13 14 15
Nature This column contains the nature of disposal. of Dispos al Quantit This column contains quantity disposal of other than y consumption or wastage. Quantity wasted or This column contains quantity of item wasted or destroyed destroyed. Closing Balance This column contains closing balance of item. Quantity of This column contains total output of excisable goods, Excisable goods if any, for which item consumed. manufactured Quantity of other This column contains total output of other goods, if goods any, for which item consumed. manufactured REMARKS Program keeps this column blank for remarks. Signature of the Program keeps this column blank for manual Assessee or his signature of the assessee or his agent. agent Quantity otherwise disposed of
ER-1
Set ups for ER-1
Company Information Navigation: Administration Application Setup General Company Information
Fields Description:
Field Large Tax Payer Description Place a check mark in the Large Tax Payer Unit field if the company is categorized as large tax payer unit as per excise rule. Choose the city code of the large tax payer unit from the look up list.
Large Tax payer city
Assigning the type of unit to E.C.C. Nos. Navigation: Financial Management Set Up Excise E.C.C.Nos
Fields Description:
Field Type of Unit Description Choose the type of unit from the drop down box. The available options are: Manufacturer and 100 % E.O.U. It will help in generating different type of returns which are submitted with the excise authority. For example For manufacturer, ER 1 return to be submitted with the excise authority. For 100 % E.O.U, ER 2 return to be submitted with the excise authority
Navigation: Financial Management Set up Excise Excise No Series
Fields Description:
Field LTU RM Description Choose the number series from the look list. In the ER -1 return, the number of transfer challan, used in the inter unit by the large tax payer unit for the raw material which is coming under Rule 12A of CENVAT credit rule 2004 will be populated in the topic d of table 10. LTU IM Choose the number series from the look list. In the ER -1 return, the transfer challan number used in the inter unit by the large tax payer unit with out payment duty, is to be specified in the topicd of table 10.
Navigation: Purchase Planning Item E.C.C No /Item Categories In the Item Card, click the Item menu button. The following form opens:
Fields Description
Field Item No E.C.C.No Description By default the item number will get populated from the Item Card. Choose the E.C.C. number from the look up list. Choose the item as Raw Material or Intermediate Goods from the drop down box. If the type of item is not defined according to the E.C.C number, then the Inter unit Transfer register and ER 1 Return table No-4 and 5 will not get populated
Type of Item
The following transactions are necessary to populate the ER1 return: Purchase of excise able goods, sales return, and sales credit memo where CENVAT credit has taken through Purchase Invoice /Order/Sales Return Order./Sales Credit Memo Manufacture of finished goods with excise product posting group. Sale of goods through Sales Order, Invoice, and Transfer Shipment Utilization of service tax credit for excise payment Utilization of excise credit for service tax payment Deposition of TR-6 challan in Public Ledger Account (PLA) through Journal and updation of the challan details through Periodical Activities in PLA form. Settlement of the excise liability through the Settlement form from the followings: RG 23A, RG 23 C, PLA, Service Tax Credit.
If any excise charge liability has been paid then with Periodical Activities update the ER 1 payment type and assign the amount to: Arrears of duty under rule 8, Interest Payment, and so on.
Transactions Navigation: Purchase Order Processing Orders

Vendor: Vendor type: Location: Structure: Item: Quantity: Direct Unit Cost : Line Amount: Calculate Structure Values. The program will calculate excise according to the defined setups Post the order with Receive and Invoice. 10000 Manufacturer 5555 Excise 70204 1000 50 50000 (The program will calculate it.)

Navigation: Purchase Order Processing History Posted Invoices
View the G/L entries
In the excise entry you will find the BED and E Cess amount according to the set up.
In the above window you can see the followings:

BED Amount: RS 5000 ECess Amount: Rs 100 This amount will be shown in the ER 1 return column number 8 under credit taken on input on invoice issued by the manufacturer of CENVAT credit availed and utilized. Note 1: Incase of excisable capital goods, purchased and CENVAT amount will be show in ER 1 return according to the vendor type. Note 2: If CVD is calculated and the item is input in the Purchase Invoice, then it will be shown in credit taken on imported goods irrespective of vendor type. If no CVD is calculated then the program will check the vendor type. If the vendor type is Importer
then it will be shown in the credit taken on imported inputs if the item is not a capital goods.
To create an output for a finished goods the following steps to be followed

Create a item card where the following fields to be filled 70206 MS Finished goods retail 16.32 Finished Production P00040 where raw material No-70204 has been attached with quantity-2
Item No: Description: Gen. Product Posting Group: Excise Product Posting Group: Inventory Posting Group: Replenishment System: Production BOM No:
Released production order through Manufacturing Execution Released Production Order 200 05/04/06 5555
Quantity: Due Date: Location:
Create consumption journal for the above production with location as: 5555 Create out put for the finished goods number: 70206 200 5555
Quantity: Location:
ER 1 report with the Excise Product Posting Group as: 16.32, will show the quantity manufactured as: 200 in table number 3 of Details of manufacture, clearance and duty payable.
Sales Order Navigation: Sales & Marketing Order Processing Orders
To create a Sales order, fill the fields as follows

Customer: Location: Structure: Item: Quantity: Direct Unit Cost : Line Amount: Calculate Structure Values. The program will calculate excise according to the defined setups Post the Order with Ship and Invoice. 20000 5555 Excise 70206 30 300 9000 (The program will calculate it.)

Navigation: Sales &Marketing History Posted Invoices
In the G/L entry, the following entry has been made by the program
BED eCess Line Amount BED Amount eCess Total Duty Amount
10% 2% Rs9000 = 30*300 Rs9000*10/100 =900 900*2/100 =18 900+18 =Rs918
In the Excise Entries, the following duty amount as shown in the image below are created
Now in the ER1 return following amount of data you will find against the Excise Product Posting Group as: 16.32 Quantity Rate of Duty CENVAT % e Cess Duty Amount eCess 30 10 2% Rs 900 Rs 18
Note: Excise product posting group makes different group in the Details of the manufacture, clearance, and duty payable, under the following cases Incase rate of duty is different for different finished goods of same excise product group, it will make different group for rate of duty. For supplementary bill, it makes different group for the same excise product posting group For intermediate goods, in case of large payer tax unit it makes different group for same excise product group For goods removed as such it makes different group for same excise product posting group
Excise credit utilized for service tax payment

The following steps to be followed
1. Create a purchase order and calculate the excise amount

Vendor: Vendor type: Location: Structure: Item: Quantity: Direct Unit Cost : Line Amount: Calculate Structure Values. The program will calculate excise according to the defined setups Post the order with Receive and Invoice. Now the BED amount is RS300 and eCess amount is Rs6 Under Credit taken on input on invoice issued by I or II stage dealer topic in table 8, the ER 1 return will show Rs 300 in the CENVAT field and Rs 6 in the eCess column. 20000 Ist stage dealer 5555 Excise 70204 60 50 3000 (The program will calculate it.)
2. Place a check mark in the Excise as Service Tax field Navigation: Financial Management General Ledger Periodical Activities Service Tax Excise as Service Tax
Place a check mark in the Excise as Service Tax field.
3. Create a purchase invoice and fill the following fields
Vendor: Location: Service tax registration for location 5555 Structure: G/L Account: Quantity: Payment method Direct Unit Cost : Line Amount:
10000 5555 5555SER Service 8410 1 Cash 10000 10000 (The program will calculate service according to the defined setup)
Post the order with Receive and Invoice. Now the Service tax amount is RS1000 and eCess amount is Rs20. Under Credit taken on input service topic in table 8, the ER 1 return will show Rs 1000 in the Service Tax columnand Rs 20 in the eCess on taxable service column.
4. Create a sales invoice and fill the following fields
Customer Location: Structure: G/L Account: Quantity: Direct Unit Cost : Payment method Line Amount:
10000 5555 Service 8410 1 20000 Cash 20000 (The program will calculate service according to the defined setups
Post the order with Receive and Invoice. Now the Service tax amount is RS 2000 and eCess amount is Rs40
5. Settle the service tax liability through Excise Credit and Service Tax Credit Navigation: Financial Management General Ledger periodical activities Service Tax Payment
Click Apply Entries
You need to keep the cursor in the Excise as Service Credit line then click the Line menu button, and then select the Excise as cenvat claim
From the RG 23A you can utilize RS 300 and Rs 6 from eCESS
Particulars A/C no-5923 Setoff against RG-A/C no 2993 Setoff against service tax credit-A/C No 2998 Payment through cash-A/C No 2910
Service tax liability 2000 300 500 1200
eCess on service tax liability 40 6 10 24

Navigation: Financial Management General Ledger History Register
In the ER 1 return Under Credit taken on inputs on invoices issued by I or II stage dealers topic in table 8, the ER 1 return will show Rs 300 in the Service Tax column and Rs 6 in the eCess on Taxable Service column. Under Credit utilised for payment of tax on services topic in table 8, the ER 1 return will show Rs 300 in the CENVAT column, Rs 6 in the eCess on exisable goods column, Rs 800(Rs 300+Rs500) in the Service Tax column, and Rs 16 in the eCess on Service Tax column.
Depositing the amount into PLA Navigation: Financial Management General Ledger General Journal
Fill the following field in the General Journal window Place a check mark in the PLA field PLA BED Amount PLA eCess Amount PLA Excise Charge Amount Rs50000 Rs10000 Rs30000
Under Add TR-6/GAR-7 Challan Payments made in the month (in aggregate) topic in table 7, the ER 1 return will show Rs 90000 in the Amount column. Under Self assessment memorandum topic in table 10, the ER 1 return will show Rs 90000 in the During the month, total Rs. column.
Updating the challan details Navigation: Financial Management General Ledger Periodical Activities Excise PLA PLA form
On the Function menu button, click the Update Challan Detail
Click OK after entering the challan details
Settlement of excise duty liability Navigation: Financial Management General Ledger General Journal
Document Type: G/L Account: E.C.C No: Payment 2994 5555
Click Apply Entries
Particulars Setoff against RG-A/C no 2993 Set off against PLA
Excise Duty Liability 900 500 400
eCess on Excise Liability 18 18
Post the journal

Under CENVAT topic in table 6, the ER 1 return will show Rs 400 in the Account current (Rs.) column and Rs 500 in the Credit account (Rs.) column. Under eCess topic in table 6, the ER 1 return will show Rs 18 in the Credit account (Rs.) column. Under Credit utilised for payment of duty on goods topic in table 8, the ER 1 return will show Rs 500 in the CENVAT column and Rs 18 in the eCess on excisable goods column.
Settlement of excise charge liability Navigation: Financial Management General Ledger General Journal
Create the excise charge liability Document Type: G/L Account: E.C.C No: Payment 2994 5555
Place a check mark in the Excise Charge field Enter the excise charge amount as Rs -20000
Now Rs 20000 as excise charge liability has been created for the E.C.C No-5555 Make the payment for excise charges
Click Applied Entries.
Enter the excise charge amount as Rs 20000 against PLA Post the journal Now Rs 20000 will get populated in table 7 (Abstract of current account )under utilization towards the other payments made during the month . Assigning the amount Rs 20000 into Arrears of duty, Interest, and so on Navigation: Financial Management General Ledger Periodical Activities Excise Update ER 1 Payment Type
Click the Update Payment Type in the Function menu button.
Select the entry and click the Update Payment Type in the Function menu button. The following form opens.
Enter the amount in the fields. These will be populated in the ER 1 report.
Procedure for Inter unit transfer of intermediate goods by large tax payer unit
Create item-70251 (MS intermediate) which is an intermediate goods for the location E.C.C 5555 and for location E.C.C No GOA 123 Create the Transfer Order with the following information: 5555 GOA 5 Blank 70251 15/04/06
Transfer from Code: Transfer to Code: Quantity: Structure: Select Item: Posting Date:
Now ER I return, for Excise Product Posting Group 16.32 will create separate group for inter unit transfer by large payer tax unit in table 3 and clearance details of inter unit transfer of intermediate goods will be shown with the qty as 5 which has been sent to GOA location with excise product posting group in table 4..
Report ER 1
Navigation:
Financial Management General Ledger Reports Excise Reporting ER 1
Fields
Description
Choose the month from the drop down box for which the ER 1report to be generated Choose the location ECC number from the lookup list for which you want to generate the report. Define the year for which ER 1 return to be generated.
Return for the Location of
Year
Note:Credit utilized for goods removed as such and inter unit transfer by large tax payer unit.
In the request form for generating the ER1 return, you can manually enter the amount in these field and it will automatically reduce the amount of credit utilized for payment of goods and the amount will get populated in the credit utilized when input or capital goods removed as such and credit utilized for inter unit transfer by a large payer tax unit.
Entered amount will not store in any table it will only help to get the printout of ER1 return. Preview of the ER1 return.
ER-2
Set ups for ER-2

Navigation: Financial Management Set up Excise E.C.C.Nos
Fields Description:
Field Type of unit Description Choose the type of unit from the drop down box. The available options are: Manufacturer and 100 % E.O.U. It will help in generating different type of returns which are submitted with the excise authority. For example For manufacturer, ER 1 return to be submitted with the excise authority. For 100 % E.O.U, ER 2 return to be submitted with the excise authority
The following transactions are necessary to populate the ER2 return:
Purchase of excise able goods, sales return, and sales credit memo where CENVAT credit has taken through Purchase Invoice /Order/Sales Return Order./Sales Credit Memo Manufacture of finished goods with excise product posting group. Sale of goods through Sales Order, Invoice, and Transfer Shipment Utilization of service tax credit for excise payment Utilization of excise credit for service tax payment Deposition of TR-6 challan in Public Ledger Account (PLA) through Journal and updation of the challan details through Periodical Activities in PLA form. Settlement of the excise liability through the Settlement form from the followings: RG 23A, RG 23 C, PLA, Service Tax Credit. If any excise charge liability has been paid then with Periodical Activities update the ER 2 payment type and assign the amount to: Arrears of duty under rule 8, Interest Payment, and so on.
Transactions Navigation: Purchase Order Processing Orders
Vendor: Vendor type: Location: Structure: Item: Quantity: Direct Unit Cost : Line Amount: Calculate Structure Values.
10000 Manufacturer 6666 Excise 70204 1000 50 50000 (The program will calculate it.)
The program will calculate excise according to the defined setups Post the order with Receive and Invoice.

Navigation: Purchase Order Processing History Posted Invoices
View the G/L entries
In the excise entry we will find the amount of BED and E cess amount according to set up
In the above window you can see the followings: BED Amount: RS 5000 ECess Amount: Rs 100 This amount will be shown in the ER 2 return table no 6 under credit availed on input of CENVAT credit availed and utilized. Note 1: Incase of excisable capital goods, purchased and CENVAT amount will be show in ER 2 return under topic Credit availed on capital goods
To create an output for a finished goods the following steps to be followed
Create a item card where the following fields to be filled 70206 MS Finished goods retail 16.32 Finished Production P00040 where raw material No-70204 has been attached with quantity-2 of unit of measurement K.G
Item No: Description: Gen. Product Posting Group: Excise Product Posting Group: Inventory Posting Group: Replenishment System: Production BOM No:
Released production order through Manufacturing Execution Released Production Order 200 06/04/06
Quantity: Due Date: Location:
6666
Create consumption journal for the above production with location as: 6666 Create out put for the finished goods number: 70206 200 6666
Quantity: Location:
ER 2 report with the Excise Product Posting Group as: 16.32, will show the quantity manufactured as: 200 in table number 3 of Details of manufacture, clearance and duty payable.
Sales Order Navigation: Sales & Marketing Order Processing Orders
To create a Sales order, fill the fields as follows

Customer: Location: Structure: Item: Quantity: Direct Unit Cost: Line Amount: Calculate Structure Values. The program will calculate excise according to the defined setups Post the order with Ship and Invoice. 20000 6666 Excise 70206 30 300 9000 (The program will calculate it.)

Navigation:
Sales &Marketing History Posted Invoices
In the G/L entry, the following entry has been made by the program.
BED eCess Line Amount BED Amount eCess Total Duty Amount
10% 2% Rs9000 = 30*300 Rs9000*10/100 =900 900*2/100 =18 900+18 =Rs918
In the Excise Entries, the following duty amount as shown in the image below are created
Now in the ER 2 return following amount of data you will find against the Excise Product Posting Group as: 16.32 Quantity Rate of Duty CENVAT % e Cess Duty Amount eCess 30 10 2% Rs 900 Rs 18
Note: Excise product posting group makes different group in the Details of the manufacture, clearance, and duty payable, under the following cases Incase rate of duty is different for different finished goods of same excise product group, it will make different group for rate of duty. For supplementary bill, it makes different group for the same excise product posting group For goods removed as such it makes different group for same excise product posting group
Excise credit claimed for service tax payment

The following steps to be followed
1. Create a purchase order and calculate the excise amount

Vendor: Location: Structure: Item: Quantity: Direct Unit Cost: Line Amount: Calculate Structure Values. The program will calculate excise according to the defined setups Post the order with Receive and Invoice. Now the BED amount is RS 1000 and eCess amount is Rs20 Under Credit availed on capital goods topic in table 6, the ER 2 return will show Rs 500 in the CENVAT field, Rs 10 in the eCess column, As it is a capital item 50% of credit will be taken in the current year and 50% will be taken in next year 20000 6666 Excise 70207 1 10000 10000 (The program will calculate it.)
2. Place a check mark in the Excise as Service Tax field Navigation: Financial Management General Ledger Periodical Activities Service tax Excise as Service Tax
Place a check mark in the Excise as Service Tax field.
3. Create a purchase invoice and fill the following fields
Vendor: Location: Service Tax Registration for location 6666 Structure: G/L Account: Quantity: Payment method Direct Unit Cost : Posting date Line Amount:
10000 6666 6666SR Service 8410 1 Cash 10000 01/04/06 10000 (The program will calculate service according to the defined setup)
Post the order with Receive and Invoice. Now the Service tax amount is RS1000 and eCess amount is Rs20. Under Credit taken on input service topic in table 6, the ER 2 return will show Rs 1000 in the Service Tax column and Rs 20 in the eCess on taxable service column.
4. Create a sales invoice and fill the following fields
Customer Location: Structure: G/L Account: Quantity: Direct Unit Cost : Payment method: Line Amount:
10000 6666 Service 8410 1 20000 Cash 20000 (The program will calculate service according to the defined setup)
Post the order with Receive and Invoice. Now the Service tax amount is RS 2000 and eCess amount is Rs40
5. Settle the service tax liability through excise credit and service tax credit Navigation: Financial Management General Ledger periodical activities Service Tax Payment
Click Apply Entries
You need to keep the cursor in the Excise as Service Credit line then click the Line menu button, and select the Excise as cenvat claim
From the RG 23C you can utilize RS 500 and Rs 10 from eCESS.
Particulars A/C no-5923 Setoff against RG-23C Setoff against service tax credit-A/C No 2998 Payment through cash-A/C No 2910
Service tax liability 2000 500 1000 500
eCess on service tax liability 40 10 10 20

Navigation: Financial Management General Ledger History Register
In the ER 2 return Under Credit availed from capital goods topic in table 6, the ER 2 return will show Rs 500 in the Service Tax column and Rs 10 in the eCess on Service Tax column. Under Credit utilized for payment of duty on services topic in table 6, the ER 2 return will show Rs 500 in the CENVAT column, Rs 10 in the eCess column, Rs 1500 (Rs 1000+Rs500) Service Tax column, and Rs 20 (Rs10+Rs10) in the eCess on Taxable Services column.
Depositing the amount into PLA Navigation: Financial Management General Ledger General Journal
Fill the following field in the General Journal window Place a check mark in the PLA field PLA BED Amount PLA eCess Amount PLA Excise Charge Amount E.C.C No Rs50000 Rs10000 Rs30000 66666 RS 90000
Total Amount
In table 8, During the month total Rs get the value as 90000
Updating the challan details Navigation: Financial Management General Ledger Periodical Activities Excise PLA PLA Form
In the Function menu button, click the Update Challan Detail
Click the OK button after entering the challan details
Settlement of excise duty liability Navigation: Financial Management General Ledger General Journal
Document Type: G/L Account: E.C.C No: Payment 2994 6666
Click Apply Entries
Particulars Setoff against RG-A/C no 2993 Set off against PLA Post the journal
Excise duty liability 900 518 400
eCess on Excise liability 18
Under CENVAT topic in table 4, the ER 2 return will show Rs 400 in the Account current (Rs.) column and Rs 518 in the Credit account (Rs.) column. Under Credit utilized for payment of duty on goods topic in table 6, the ER 2 return will show Rs 518 in the CENVAT column.
Settlement of excise charge liability Navigation: Financial Management General Ledger General journal
Create the excise charge liability Document Type: G/L Account: E.C.C No: Payment 2994 66666
Place a check mark in the Excise Charge field Enter the excise charge amount as Rs -11000 Now Rs 11000 as excise charge liability has been created for the E.C.C No-66666
Make the payment for excise charges
Click Applied Entries.
Enter the excise charge amount Rs 11000 against PLA
Post the journal
. Assigning the amount Rs 11000 into arrears of duty ,Interest so on Navigation:

Financial Management General Ledger Periodical Activities Excise Update ER 2 Payment Type
Click the Update Payment Type in the Function menu button
Select the entry and click the Update Payment Type in the Function menu button. The following form opens.
Enter the amount in the fields. These will be populated in the ER 2 report.
Procedure for Input or capital goods received without payment

Create item-70208 (MS goods) Excise Posting Group 16.34 Notification No-WODUTY CTSH No-16.345 Quantity-5 Create a purchase order where the structure is blank Structure-Blank Select item as 70208 Posting date-15/04/06 Now in table no 5 of ER 2 return, it will show the product posting group 16.34 with custom tariff heading and value of the goods. To view this table the following conditions are necessary: 1) Excise product posting set up notification no. and serial no. of notification are must 2) No excise duty is to be calculated
Report
ER 2
Navigation: Financial Management General Ledger Reports Excise Reporting ER 2
Fields
Description
Choose the month from the drop down box for which the ER 2 report to be generated Choose the location ECC number from the lookup list for which you want to generate the report. Enter the year for which ER 2 return to be generated.
Return for the location of
Year
Note:
Credit utilized for goods removed as such:

In the request form for generating the ER 2 return, you can manually enter the amount in these field and it will automatically reduce the amount of credit utilized for payment of goods and the amount will get populated in the credit utilized when input or capital goods removed as such. Entered amount will not store in any table it will only help to get the printout of ER 2 return. Preview of the ER 2 return:
Microsoft Business Solutions Navision 4.0- Additional Duty of Custom & Special CVD in Lieu of VAT
Table of Contents
Overview of Functionality......................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................3 Reports..............................................................................................................4 Setups Required ...................................................................................................4 Excise Setup .....................................................................................................5 Duties ............................................................................................................6 Posting Setup ................................................................................................7 Claim Setoff ...................................................................................................9 Structure..........................................................................................................11 Calculation of CVD and ADC through Purchase Transactions ...........................12 Calculation of CVD in case of Normal Item through Purchase Order/Invoice..12 Viewing the Posted Transaction ..................................................................13 Calculation of CVD in case of Capital Item through Purchase Order/Invoice ..20 Viewing the Posted Transaction ..................................................................21 Calculation of CVD through purchase Credit Memo........................................30 Viewing the Posted Transaction ..................................................................31 Calculation of CVD through Sales Order.........................................................38 Viewing the Posted Transaction ..................................................................39 Calculation of CVD through Transfer Order ....................................................44 Transfer of Normal Items .............................................................................44 Viewing the Posted Transaction (Transfer Shipments)................................45 Viewing the Posted Transaction (Transfer Receipts)...................................50 Transfer of Capital Items .............................................................................57 Viewing the Posted Transaction (Transfer Shipments)................................58 Viewing the Posted Transaction (Transfer Receipts)...................................65 Excise CENVAT Claim ....................................................................................74 Calculation of CVD and ADC in case of Trading Items .......................................79 Calculation of CVD in case of Trading Item through Purchase Order .............79 Viewing the Posted Transaction ..................................................................80 Calculation of CVD in case of Trading Item through Sales Order....................86 Viewing the Ledger Entries ..........................................................................87 Calculation of CVD in case of Trading Item through Purchase Return Order..93 Viewing the Ledger Entries ..........................................................................94 Calculation of CVD in case of Trading Item through Sales Return Order......100 Viewing the Ledger Entries ........................................................................101 Goods Purchased for Trading and Further Transferred for Manufacturing .......107 Transfer of Goods to Manufacturing Unit from Trading Unit ..........................107 Viewing the Ledger Entries ........................................................................109 Capital Goods Purchased for Trading and further Transferred for Manufacturing ..........................................................................................................................115 Transfer of Capital Goods to Manufacturing Unit from Trading Unit..............115 Viewing the Ledger Entries ........................................................................117 Appendix...........................................................................................................123
Additional duty of Custom (CVD) equivalent to duty of excise and Additional duty of customs equivalent to value Added tax, Sales Tax, or local tax are specified for the purpose of eligibility of CENVAT. Additional duty of customs equal to the, excise duty leviable on like goods produced or manufactured in India. This is levied under Section 3 of Customs Tariff Act, 1975. This is usually referred to as "Countervailing Duty" (CVD). However, the correct description of this duty is Additional Duty of Customs. In order to determine the applicable rate, the user has to obtain the correct classification of the goods under the Central Excise Tariff Act, 1986. The duties under the Central Excise Tariff are on ad valorem basis. However, specific rates have been prescribed for some items.
Detailed Setup
CVD functionality contains the detailed setup of Excise and Structure which you need to create before calculating CVD and ADC VAT. Followings are the setups required for calculating CVD and ADC. Excise Structure Claim Setoff
Following are the comprehensive functionalities covered under CVD in case of Normal Items and Capital Goods: Calculation of CVD and ADC VAT through Purchase, Sale Order/Invoice. Updation of RG 23 A/C Part I & II registers. Additional duty in lieu of VAT is not available for deferments in case of purchase of capital item. Additional duty component is not available for settlement of service tax on output service. Settlement of one duty element against multiple sub-duty elements Calculation of CVD in case of purchase of trading items. CVD can also be calculated while transferring goods from trading unit to manufacturing unit. Updating RG 23 D and Quarterly Return for Traders reports.
Reports
All statutory reports related to excise for example RG 23 A Part I & II, RG 23 C Part I & II, RG 23 D, and Quarterly Return for Traders will get updated with this functionality.
Setups Required
Followings are the setups required to be fill for calculating CVD and ADC. Excise Structure Claim Setoff
Excise Setup
Navigation: Financial Management General Ledger Setup Excise
Duties
Navigation: Financial Management General Ledger Setup Excise Duties
In the Excise Duties setup, following new codes has been introduced for the calculation of CVD and ADC: ADC VAT Amount BCD Amount CIF Amount SHE CESS Amount
These codes will be used for setting up the calculation formulas in the Excise Posting setup.
Posting Setup
Navigation: Financial Management General Ledger Setup Excise Posting Setup
Fill in the fields according to these guidelines for calculating CVD and ADC: Fields Excise Bus. Posting Group Excise Prod. Posting Group From Date CENVAT Cr. Receivable Account CENVAT Cr. Receivable (Trading) CENVAT Transferred (Trading) Excise Payable Account CENVAT Cr. (Deferred) Account BED Calculation Type Description Choose the excise business posting group from the lookup list. Choose the excise production posting group from the lookup list. Enter the date, from which you want to calculate CVD and ADC. Choose the CENVAT Cr. Receivable Account from the lookup list. Choose the CENVAT Cr. Receivable (Trading) from the lookup list. Choose the CENVAT Transferred (Trading) from the lookup list. Choose the Excise Payable Account from the lookup list. Choose the CENVAT Cr. (Deferred) Account from the lookup list. Choose the BED Calculation type from drop down button.
BED % BED Calculation Formula
Define the BED %. Define the BED calculation formula as the sum of BCD Amount, CIF Amount (New field introduced for the calculation of CVD). Choose the AED(GSI) Calculation Type from drop down button. Define the AED(GSI) %. Define the AED(GSI) calculation formula as the sum of BCD Amount, CIF Amount. Choose the SED Calculation type from drop down button. Define the SED % Define the SED calculation formula as the sum of BCD Amount, CIF Amount. Choose the SAED Calculation type from drop down button. Define the SAED %. Define the SAED calculation formula as the sum of BCD Amount, CIF Amount. Choose the eCess Calculation type from drop down button. Define the eCess %. Define the eCess calculation formula as the sum of BED Amount, AED Amount, SED Amount and SAED Amount. Place a check mark If you want to setoff against excise payable eCess and SHE CESS. Choose the SHE CESS Calculation type from drop down button. (New field has been introduced to calculate SHE CESS). Define the SHE CESS % (New Field has been introduced to calculate SHE CESS).
AED(GSI) Calculation Type AED(GSI) % AED(GSI) calculation formula SED Calculation type SED % SED Calculation formula SAED calculation Type SAED % SAED calculation formula eCess calculation type eCess % eCess calculation formula
Setoff Available for eCess
SHE CESS calculation type
SHE CESS %
SHE CESS calculation formula
Define the SHE CESS calculation formula as the sum of BED Amount, AED Amount, SED Amount and SAED Amount (New Field has been introduced to calculate SHE CESS). Choose the ADC VAT Calculation type from drop down button. (New field has been introduced for the calculation of ADC). Enter the ADC VAT %(New field has been introduced for the calculation of ADC). Define the ADC VAT calculation formula as the sum of BCD Amount, CIF Amount, BED Amount, AED Amount, SED Amount, SAED Amount, eCess Amount and SHE CESS Amount (New field has been introduced for the calculation of ADC).
ADC VAT calculation type
ADC VAT % ADC VAT calculation formula
The program will calculate CVD and ADC, based on the formula defined in the Excise Posting setup.
Claim Setoff
Navigation: Financial Management General Ledger Setup Excise Claim Setoff
In the Claim Setoff list, you can map a duty against another duty which you want to take the credit while using CENVAT Claim form. Fields Description: Fields BED Amount Description Choose duties from the duty code list against which you want to settle the BED
Fields AED(TTA) Amount
Description Amount. Choose duties from the duty code list against which you want to settle the AED (TTA) Amount. Choose duties from the duty code list against which you want to settle the AED (GSI) Amount. Choose duties from the duty code list against which you want to settle the ADET Amount. Choose duties from the duty code list against which you want to settle the ADE Amount. Choose duties from the duty code list against which you want to settle the CESS Amount. Choose duties from the duty code list against which you want to settle the NCCD Amount. Choose duties from the duty code list against which you want to settle the SAED Amount. Choose duties from the duty code list against which you want to settle the SED Amount. Choose duties from the duty code list against which you want to settle the eCess Amount. Choose duties from the duty code list against which you want to settle the SHE CESS Amount. Choose duties from the duty code list against which you want to settle the ADC VAT Amount.
AED(GSI) Amount
ADET Amount
ADE Amount
CESS Amount
NCCD Amount
SAED Amount
SED Amount
eCESS Amount
SHE CESS Amount
ADC VAT Amount
Structure
Navigation: Financial Management General Ledger Setup Structure Structure
Create new structure for CVD calculation with Type Excise.
Fields Description Fields CVD CVD Payable to Third Party Description Place a check mark in this field to calculate the CVD. Place a check mark in this field if the CVD and ADC amount is payable to Third Party means Customs House. Select the third party code from the G/L Account List by clicking lookup button.
CVD Third party Code
Note: The program will calculate CVD only if the CVD is True in Structure and will update third party account if CVD payable to third party field is checked and CVD third party code is defined in structure. Third party feature is only applicable in case of Purchase Transactions.
Calculation of CVD and ADC through Purchase Transactions

Calculation of CVD in case of Normal Item through Purchase Order/Invoice
Navigation: Purchases Order Processing Orders
To calculate CVD, fill the fields in the Purchase Order form as follows: On the Header: Buy from Vendor No: Structure: On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: CIF Amount: Item 1000 Bicycle 10 1000 10000 10000 10000 CVD
BCD Amount: Calculate Structure
10000
Press F9 to view the excise amount
Post the Order.

Navigation: Purchases History Posted Invoice
G/L Entry
The program creates the following entry: Particulars Purchase CENVAT Cr. Receivable Vendor Custom House Type DR DR CR CR Amount(Rs) 10000 4228 10000 4228
In this case, the program will credit the Custom House with CVD and ADC amount. Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Calculation: 20000*16%: 3200*2%: 3200*1%: 20000+3296 = 23296*4%: Total CVD & ADC Amount: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 932 (ADC VAT) 3200+ 64+ 32+ 932= 4228 20000 16% 4% 2% 1%
Excise Entry
The program will create Excise Entry with value in the CVD field as Yes and will also update the ADC VAT Amount.
RG 23 A Part I
The program will create RG 23 A Part I entry with Received Quantity.
RG 23 A Part II
The program will create RG 23 A Part II entry with CVD Yes and will also update the ADC VAT Amount fields. You can also post the transaction from the Purchase Invoice. Note 1: The user can also calculate CVD for type G/L Account and Charge (Item) from the Purchase Order / Invoice. Note 2: If CVD is True in Structure then the user should enter the amount in the CIF and BCD Amount fields on Purchase line of Order /Invoice.
Note 3: ADC VAT amount will not be available for taking excise credit while making payment of service tax.
Calculation of CVD in case of Capital Item through Purchase Order/Invoice

To calculate CVD, fill the fields in the Purchase Order as follows:
On the Header:
Buy from Vendor No: Structure: On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: CIF Amount: BCD Amount: Calculate Structure Item 80206 (Capital Item field is true in Item Card) WEBCAM 10 1000 10000 10000 10000 10000 CVD
Press F9 to view the excise amount Post the Order

G/L Entry
The program creates the following entry: Particulars Purchase CENVAT Cr. Receivable CENVAT Deferred Vendor Custom House Type DR DR DR CR CR Amount(Rs) 10000 2580 1648 10000 4228
Note: In case of capital item the program will not consider ADC VAT amount as deferred. ADC VAT amount will be treated as CENVAT Cr. Receivable. Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Calculation: 20000*16%: 3200*2%: 3200*1%: 20000+3296 = 23296*4%: Total CVD & ADC Amount: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 932 (ADC VAT) 3200+ 64+ 32+ 932= 4228 20000 16% 4% 2% 1%
4228-932=3296, 3296/2= 1648 Means 1648 as CENVAT Deferred and 2580 as CENVAT Receivable Excise Entries First Entry
The program will create the Excise Entry with ADC VAT amount while taking the value in the CVD field as Yes and in the Deferred field as: No.
Second Entry
In the second entry you see that the Deferred field and the CVD field have the values as: Yes but there is no ADC VAT amount because ADC VAT amount is not considered as deferred.
RG 23 C Part I
The program will create RG 23 C Part I entry with the Received Quantity.
RG 23 C Part II
The program will create RG 23 C Part II entry with the value in the CVD field as: Yes and will update the ADC VAT Amount fields. You can also post the transaction from the Purchase Invoice. Note 1: The user can also calculate the CVD for type: Fixed Asset, G/L Account, and Charge (Item) from the Purchase Order / Invoice. Note 2: If CVD is True in Structure then the user should enter the amounts in the CIF and BCD Amount fields on the purchase line of Order/Invoice.
Calculation of CVD through purchase Credit Memo

Navigation: Purchases Order Processing Credit Memo
To calculate CVD, fill the fields in the Purchase Credit Memo window as follows:
On the Header:
No: Structure: On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: CIF Amount: BCD Amount: Calculate Structure Press F9 to view the excise amount Item 1000 Bicycle 10 1000 10000 10000 10000 10000 CVD
Post the Credit Memo.

Navigation: Purchases History Posted Credit Memos
G/L Entry
The program creates the following entry: Particulars Custom House Vendor CENVAT Cr. Receivable Purchase Type Dr Dr Cr Cr Amount(Rs) 4228 10000 4228 10000
In this case, the program will reverse the original transaction that has been created after posting the Purchase Order / Invoice. Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Calculation: 20000*16%: 3200*2%: 3200*1%: 20000+3296 = 23296*4%: Total CVD & ADC Amount: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 932 (ADC VAT) 3200+ 64+ 32+ 932= 4228 20000 16% 4% 2% 1%
Excise Entry
The program will create Excise Entry with the value in the CVD field as Yes and will update the ADC VAT Amount.
RG 23 A Part I
The program will create RG 23 A Part I entry with negative value in the Quantity Received field.
RG 23 A Part II
The program will create RG 23 A Part II entry with the value in the CVD field as Yes and will update the ADC VAT Debit field also. You can also post the transaction from the Purchase Return Order. The program will only create RG 23 A/C part I & II entries if the user has Return Order granule. Note 1: The user can also calculate CVD for type: Fixed Asset, G/L Account and Charge (Item) from the Purchase Credit Memo/Return Order. Note 2: If the CVD is True in Structure then the user should enter the amount in the CIF and BCD Amount fields on the purchase line of Credit Memo/Return Order.
Calculation of CVD through Sales Order

To calculate CVD, fill the fields in the Sales Order window as follows:
On the Header:
No: Structure: On the Line: Type: No.: Description: Quantity: Unit Price: Line Amount: CIF Amount: BCD Amount: Calculate Structure Press F9 to view the excise amount Item 1000 Bicycle 10 4000 40000 10000 10000 10000 CVD

G/L Entry
The program will create the Credit Excise Payable entry with CVD and ADC VAT amount. Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Calculation: 20000*16%: 3200*2%: 3200*1%: 20000+3296 = 23296*4%: Total CVD & ADC Amount: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 932 (ADC VAT) 3200+ 64+ 32+ 932= 4228 20000 16% 4% 2% 1%
Excise Entry
The program will create Excise Entry with value in the CVD field as Yes and will also update the ADC VAT Amount field.
RG 23 A Part I
The program will create RG 23 A Part I entry with value in the Quantity Sold field. In case of sales, the user can also enter the CVD (duties) and ADC VAT amount manually in all duties fields on the sales line only after calculating Structure. Note 1: The user can calculate CVD by selecting Type: Fixed Asset, G/L Account, and Charge (item) in the Sales Order/Invoice.
Note 2: : If the CVD field is True in Structure then the user should enter the amount in the CIF and BCD Amount fields on the sales line of Order/Invoice. Note 3: The user can also calculate CVD through the Sales Credit Memo and Return Order. In this case the program will update RG 23 A/C Part I & II entries with the value in the CVD field as Yes.
Calculation of CVD through Transfer Order

Transfer of Normal Items
First purchase normal Items and calculate CVD and ADC VAT through the Purchase Order/Invoice. Then the transfer of normal items from one location to another occurs.
Navigation: Purchase Order Processing Transfer Orders
To calculate CVD, fill the fields in the transfer Order window as follows:
On the Header:
No: Transfer from Code: Transfer to Code: In-transit Code: Structure: 1089 Loc 1. Loc 2. Out. Log CVD
On the Line: Item No.: Description: Quantity: Transfer Price: Amount: CIF Amount: BCD Amount: Calculate Structure Post the Transfer order Ship and Receive. 1000 Bicycle 10 1000 10000 10000 10000
Viewing the Posted Transaction (Transfer Shipments)

Navigation: Warehouse History Posted Transfer Shipments
G/L Entry
The program will credit the Excise Payable with CVD and ADC VAT amount, as goods has been transferred to new location. Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Calculation: 20000*16%: 3200*2%: 3200*1%: 20000+3296 = 23296*4%: Total CVD & ADC Amount: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 932 (ADC VAT) 3200+ 64+ 32+ 932= 4228 20000 16% 4% 2% 1%
Excise Entry
The program will create Excise Entry with the value in the CVD field as Yes and will update the ADC VAT Amount field with the negative value.
RG 23 A Part I
The program will create RG 23 A Part I entry with value in the Quantity Sold field.
Viewing the Posted Transaction (Transfer Receipts)

Navigation: Warehouse History Posted Transfer Receipts
G/L Entry
The program will debit CENVAT Cr. Receivable account with CVD and ADC VAT
amount. Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Calculation: 20000*16%: 3200*2%: 3200*1%: 20000+3296 = 23296*4%: Total CVD & ADC Amount: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 932 (ADC VAT) 3200+ 64+ 32+ 932= 4228 20000 16% 4% 2% 1%
Excise Entry
The program will create Excise Entry with the value in the CVD field as Yes and will update the ADC VAT Amount field also.
RG 23 A Part I
The program will create RG 23 A Part I entry with value in the Quantity Received field.
RG 23 A Part II
The program will create RG 23 A Part II entry with the value in the CVD field as Yes and will update the ADC VAT Amount fields.
Transfer of Capital Items

First purchase the capital items and calculate CVD and ADC VAT through the Purchase Order/Invoice. Then transfer of the capital items from one location to another occurs.
On the Header:
No: Transfer from code: Transfer to Code: In-transit Code: Structure: On the Line: Item No.: Description: Claim Deferred Excise: Quantity: Transfer Price: Amount: CIF Amount: BCD Amount: 80206 Webcam True 10 1000 10000 10000 10000 1091 Loc 1 Loc 2 Out. Log CVD
Calculate Structure Post the Transfer Order as Ship and Receive.

G/L Entry
First the program will transfer the amount from the Deferred account to CENVAT Cr. Receivable account and then credit the Excise Payable account. Calculation: In the original entry the program has debited CENVAT Cr. Receivable A/C with 2580 and debited CENVAT Deferred A/C with 1648 as you have purchased a capital item. After transferring capital item from Loc 1. To Loc 2. The program has credited CENVAT Deferred A/C with 1648 and debited CENVAT Cr. Receivable A/c with 1648. Now, CENVAT Cr. Receivable A/C in Loc 1 has a debit balance of 4228 and the program has credited Excise Payable A/C with 4228 after transferring capital items to Loc 2.
Excise Entry
The program will create Excise Entry with the value in the CVD field as Yes and will update the ADC VAT Amount field with negative value.
RG 23 C Part I
The program will create RG 23 C part I entry with the value in the Quantity Sold field.
RG 23 C Part II
The program will create RG 23 C Part II entry and transfer the duties amount from next year to current year.

G/L Entry
Note: The program will debit CENVAT Cr. Receivable and CENVAT Deferred account. Note: In case of capital item, the program will not consider ADC VAT amount as Deferred. ADC VAT amount will be treated as CENVAT Cr. Receivable. Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Calculation: 20000*16%: 3200*2%: 3200*1%: 20000+3296 = 23296*4%: Total CVD & ADC Amount: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 932 (ADC VAT) 3200+ 64+ 32+ 932= 4228 20000 16% 4% 2% 1%
4228-932 = 3296, 3296/2= 1648 1648 as CENVAT Deferred and 2580 as CENVAT Receivable
Excise Entry First entry
The program will create the Excise entry with ADC VAT amount while taking the value in the CVD field as Yes and value in the Deferred field as No.
Second entry
In the second entry the value in both of the Deferred and CVD field is Yes but there is no ADC VAT Amount, because ADC VAT amount should not be consider as deferred.
RG 23 C Part I
The program will create RG 23 C Part I entry with Quantity Received.
RG 23 C Part II
The program will create RG 23 C Part II entry with the value in the CVD field as Yes and will also update the ADC VAT Amount fields. Note 1: If the CVD is True in Structure then user should enter the amounts in CIF and BCD Amount fields on the Transfer Order line. Note 2: All transactions posted from Sales, Purchase and Transfer Order documents can be viewed in RG 23 A/C Part II reports.
Excise CENVAT Claim

In case of making adjustment of excise payable amount with CENVAT credit available for the particular ECC number.
Navigation: Financial Management General Ledger General journal
Click the Functions menu button, select the Payment option, and then click Excise. A new window opens.
In the Pay Excise window, the program will show the pending transactions of sales which have to be paid. Click Apply Entries.
In this form all field except Service Tax are non-editable Click Detail menu button to enter the values. A new form opens, where you can take the credit or settle your excise payable according to the claim setoff list defined in the Excise Setup. The program will show you the total liability according to the duty on each tab. The program will also show you the credit available for each component on the top line.
In the above form, you can see that for each duty the program is displaying liability and remaining liability. When you settle amount of duty with credit available then the remaining liability will be reduced to zero.
In the above form; you can see that for each duty, the program is displaying liability and remaining liability. When you settle amount of duty with credit available then the remaining liability will be reduced to zero.
In the above form; you can see that for each duty, the program is displaying liability and remaining liability. When you settle amount of duty with credit available then the remaining liability will be reduced to zero.
In the above form; you see that three tabs are available for RG 23 A Part II, RG 23 C Part II, and PLA. You can settle your components according to the setup. After entering amounts on each tab, close the form.
The program will automatically fill in the fields according to the values entered in the previous form.
Close the form.
Now the program populates the Amount field with the total value that has been adjusted against CENVAT Credit. Post the Journal.
Note: As discussed above, the user can take the credit while using Direct Debit to PLA and creating Sales Order / Invoice. In this case only PLA tab is editable. In case of CVD, the user can adjust ADC VAT with any component of PLA based on the setup created in Claim Setoff list.
Calculation of CVD and ADC in case of Trading Items

Calculation of CVD in case of Trading Item through Purchase Order
To calculate CVD, fill the fields in the Purchase Order window as follows:
On the Header:
Buy from Vendor No: Location: Structure: On the Line: Type: No.: Item 1000 10000 Trading (Place a check mark in Trading Location Field in the Location Card). CVD
Description: Quantity: Direct Unit Cost: Line Amount: CIF Amount: BCD Amount: Calculate Structure
Bicycle 10 1000 10000 10000 10000
Press F9 to view the excise amount On the Invoicing tab, Trading Item field will get a default check mark if the Trading Co. field in the Company Information window has been checked. Post the Order.

G/L Entry
The program creates the following entry: Particulars Purchase CENVAT cr. Receivable(Trading) Vendor Custom house Type Dr Dr Cr Cr Amount(Rs) 10000 4228 10000 4228
In this case the program will credit the Custom House with CVD and ADC Amount. Calculation of CVD and ADCs The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Calculation: 20000*16%: 3200*2%: 3200*1%: 20000+3296 = 23296*4%: Total CVD & ADC Amount: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 932 (ADC VAT) 3200+ 64+ 32+ 932= 4228 20000 16% 4% 2% 1%
Excise Entry
The program will create excise entry with the value in the CVD field as Yes and will also update the ADC VAT Amount field.
RG 23 D Entry
The program will create RG 23 D entry with the value in the CVD field as Yes and will update the ADC VAT Amount Per Unit, Line Amount Per Unit, Excise Amount Per Unit and Excise Base Amount Per Unit fields. You can also post the transaction from the Purchase Invoice. Note 1: If the CVD is True in Structure then the user should enter the amount in CIF and BCD Amount fields on the purchase line of Order / Invoice.
Calculation of CVD in case of Trading Item through Sales Order

NAVIGATION: Sales & Marketing Order Processing Orders

Customer: Location: Structure: Item: Quantity: Unit Price: Line Amount: Calculate Structure Values. The program will calculate excise according to the defined setups. On the Invoicing tab, Trading Item field will get a default check mark if the Trading Co. field in the Company Information window has been checked. Post the Order with Ship and Invoice. 10000 Blue Excise/CVD 1000 10 4000 40000 (The program will calculate it.)

NAVIGATION: Sales & Marketing Order Processing History Posted Invoices
G/L Entry
The program creates the following entry: Particulars Customer CENVAT Transfer trading Sales Type Dr Cr Cr Amount(Rs) 44228 4228 40000
Following steps are needed to calculate excise amount on FIFO (First in First Out) basis: Step 1: Purchase has been made for 10 quantities and the CVD amount is Rs. 4228 Step 2: While creating Sales Order, quantity is 10 Step 3: The Program will calculate the CVD amount on FIFO basis. Step 4: From Purchase Order Rs. 4228 as CVD amount for 10 quantities have been taken Step 5: The value will come after calculating structure values.
Excise Entry
RG 23 D Entry
The program will create RG 23 D entry with negative values. Entry will be created against Purchase Order, where quantity is 10 and CVD amount is 4228. You can also post the transaction through Sales Invoice Note 1: The CVD amount will be calculated through Structures. The program will calculate the CVD amount on pro-rata basis where the Trading Item field has a check mark in the Sales Order form and that will be displayed in RG 23 D.
Note 2: The CVD amount will be calculated on FIFO basis for the item, purchased through Purchase Order/Invoice.
Calculation of CVD in case of Trading Item through Purchase Return Order

NAVIGATION: Purchase Order Processing Return Orders

Vendor: Location: Structure: Applies-to Doc. Type: Applies-to Doc No: Item: Quantity: Direct Unit Price: Line Amount: CIF Amount: BCD Amount: Calculate Structure Values. The program will calculate CVD according to the defined setups. On the Invoicing tab, Trading Item field will get a default check mark if the Trading Co. field in the Company Information window has been checked. 10000 Trading CVD Invoice 108562 1000 10 1000 10000 (The program will calculate it.) 10000 10000
Post the Return Order.

NAVIGATION: Purchase Order Processing History Posted Credit Memos
G/L Entry
The program creates the following entry: Particulars Customs house Vendor CENVAT Cr. Receivable (Trading) Purchase Type Dr Dr Cr Cr Amount(Rs) 4228 10000 4228 10000
Note: In this case the program will reverse the original transaction which has been created at the time of posting the Purchase order. Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Calculation: 20000*16%: 3200*2%: 3200*1%: 20000+3296 = 23296*4%: Total CVD & ADC Amount: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 932 (ADC VAT) 3200+ 64+ 32+ 932= 4228 20000 16% 4% 2% 1%
Excise Entry
RG 23 D Entry
The program will create RG 23 D entry with the value in the CVD field as Yes. Note 1: In case of Purchase Return Order, all values in RG 23 D table will come in negative. Note 2: It is mandatory to enter the document number in the Applies-to Doc. No field while creating Purchase Return Order. Note 3: If the purchase is made and the user has also sold the quantity, after that the user is doing purchase return with the program, then the program will not allow this process. There should be some minimum quantity in RG 23 D for return.
Calculation of CVD in case of Trading Item through Sales Return Order

NAVIGATION: Sales & Marketing Order Processing Return Orders

Customer: Location: Structure: Applies-to Doc. Type: Applies-to Doc No: Item: Quantity: Direct Unit Price: Line Amount: Calculate Structure Values. The program will calculate CVD according to the defined setup. On the Invoicing tab, Trading Item field will get a default check mark if the Trading Co. field in the Company Information window has been checked. Post the Return Order. 10000 Trading CVD Invoice 107611 1000 10 4000 40000 (The program will calculate it.)

NAVIGATION: Sales & Marketing Order Processing History Posted Credit Memos
G/L Entry
The program creates the following entry: Particulars Sales CENVAT Transfer Trading Customer Type Dr Dr Cr Amount(Rs) 40000 4228 44228
The original sales invoice is posted with CVD amount as 4228. The sales invoice has been applied and the program has taken the same CVD amount in the Return Order.
Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Calculation: 20000*16%: 3200*2%: 3200*1%: 20000+3296 = 23296*4%: Total CVD & ADC Amount: Excise Entry 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 932 (ADC VAT) 3200+ 64+ 32+ 932= 4228 20000 16% 4% 2% 1%
The program will create Excise entry with the value in the CVD field as Yes and will update the ADC VAT Amount field.
RG 23 D Entry
In the above window the Excise Amount Per Unit field has the value as: 422.8. Note 1: In case of Sales Return Order positive values will come in the RG 23 D table. Note 2: It is mandatory to enter the document no. in Applies-to Doc field while creating the Sales Return Order.
Goods Purchased for Trading and Further Transferred for Manufacturing

Create a Purchase Order / Invoice with a check mark in the Trading Item field and the following values: Quantity: Unit Cost: Line Amount: CIF Amount: BCD Amount: CVD Amount: Post the Order/Invoice. The program will create the following entry: Purchase A/C Dr. CENVAT Cr. Rec. (Trading) Dr. Vendor A/C Cr. Customs House A/C Cr. 10000 4228 10000 4228 10 1000 10000 10000 10000 4228
The posted entry will store in the RG 23 D.
Transfer of Goods to Manufacturing Unit from Trading Unit

NAVIGATION: Warehouse Planning & Execution Item Reclass. Journal

Item No.: Location: New Location: Quantity: Applies-to Entry (RG 23 D): 1000 Trading (Enter the trading location from where goods have to be transferred) Manu fact (Enter the manufacturing location, to which goods has to be transferred) 10 6
From Apples-to Entry (RG 23 D) lookup list, choose the entry number which you want to transfer.
Click Ok. The selected entry number will be displayed in the Applies-to Entry (RG 23 D) field in the Item Reclass. Journal. Post the Item Reclass. Journal.

Now the user can view the posted entries from the Posted Purchase Invoice.
G/L Entry
The program will create the following entry. Purchase A/C Purchase (Trading) A/C Cenvat Cr. Receivable A/C Cenvat Cr. Receivable (Trading) Dr. Cr. Dr. Cr. 10000 10000 4228 4228
The purchase and the CVD amount will be transferred to the Manufacturing G/L accounts from the Trading G/L account. The program will create RG 23 D entry.
The program will reverse the original entry in RG 23 D table with negative values as the item has been transferred to manufacturing unit with the value in the CVD field as Yes.
Excise Entries
The program will also reverse the excise with negative values in trading location and in manufacturing location. The program will create excise entry with positive values while taking the value in the CVD field as Yes. The program will also create RG 23 A Part I & II entries in manufacturing location.
RG 23 A Part I Entry
RG 23 A Part II Entry
The program will create RG 23 A Part II entry with the value in the CVD field as Yes and will also update the ADC VAT Amount field.
Create a Purchase Order / Invoice with a check mark in the Trading Item field and the following values: Quantity: Unit Cost: Line Amount: CIF Amount: BCD Amount: Excise Amount: Post the Order/Invoice. The program will create the following entry: Purchase A/C CENVAT Cr. Rec. (Trading) Vendor A/C Customs house A/C Dr. Dr. Cr. Cr 10000 4228 10000 4228 10 1000 10000 10000 10000 4228

NAVIGATION: Warehouse Planning & Execution Item Reclass. Journal
Item No.: Location: New Location: Quantity: Applies-to Entry (RG 23 D):
80206 Trading (Enter the trading location from where goods have to be transferred) Manu fact (Enter the manufacturing location to which goods has to be transferred) 10 8
Click OK. The chosen entry number will be displayed in the Applies-to Entry (RG 23 D) field in the Item Reclass. Journal. Post the Item Reclass. Journal.

Now the user can view the posted entries from the Posted Purchase Invoice
G/L Entry
The program will create the following entry. Purchase A/C Purchase (Trading) A/C Cenvat Cr. Receivable A/C Cenvat Cr. Deffered Account Cenvat Cr. Receivable (Trading) Dr. Cr. Dr. Dr. Cr. 10000 10000 2580 1648 4228
The program will divide the CVD amount as Capital item field is checked in the Item Card. The program will not consider ADC VAT amount in the Deferred account. The purchase and the CVD amount will be transferred to the Manufacturing G/L account from the Trading G/L account. The program will create RG 23 D entry.
The program will reverse the original entry in the RG 23 D table with negative values as the item has been transferred to manufacturing unit.
Excise Entries
The program will reverse the excise entry in trading location with negative values and also create two more entries in manufacturing location, one for non deferred with taking the value in the CVD field as Yes and the second one for deferred with taking the value in the CVD as Yes.
RG 23 C Part I Entry
The program will create the RG 23 C Part I entry with value in the Quantity Received field from manufacturing location.
RG 23 C Part II Entry
In manufacturing location, the program will create RG 23 C Part II entry with the value in the CVD field as Yes and will also update the ADC VAT Amount field. Note: All the transactions related to trading items, purchase, sales, and transfer of items from trading to manufacturing locations can be viewed in the RG 23 D and Quarterly Return for Traders reports.
Appendix
Illustration: Import of goods
CIF: BCD: BED: AED: SED: SAED: ECESS: SHE CESS: ADC VAT: 10000 10000 10% 2% 2% 2% 2% 1% 4%
Calculation: CIF + BCD = 20000 20000*16%: 3200*2%: 3200*1%: 20000+3296 = 23296*4%: Total CVD & ADC Amount: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 932 (ADC VAT) 3200+ 64+ 32+ 932= 4228
Microsoft Business Solutions Navision 4.0- Gate Entry
Table of Contents
Overview of Functionality......................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................3 Reports..............................................................................................................4 Setups- Gate Entry ...............................................................................................4 Inventory Setup .................................................................................................6 Gate Entry Location Setup ................................................................................7 Gate Entry Inward ............................................................................................11 Gate Entry - Inward if the Source Type is Purchase Order .............................13 Viewing Posted gate Entry Inward ............................................................14 Get Gate Entry Lines ...................................................................................15 Gate Entry - Inward if the Source Type is Sales return Order .........................24 Viewing Posted Gate Entry Inward ...........................................................25 Get Gate Entry Lines ...................................................................................26 Gate Entry - Inward if the Source Type is Transfer Receipt ............................31 Viewing Posted Gate Entry Inward ...........................................................32 Get Gate Entry Lines ...................................................................................33 Gate Entry - Inward if the Source Type is Blank..............................................38 Create Gate Entry Inward (In case of Purchase Invoice)..........................38 Viewing Posted Gate Entry Inward ...........................................................39 Get Gate Entry Lines ...................................................................................40 Create Gate Entry Inward (In case of Sales Credit Memo) .......................45 Viewing Posted Gate Entry Inward ...........................................................46 Get Gate Entry Lines ...................................................................................47 Create Gate Entry Inward (In Case of Gifts and Others without Challan Number).......................................................................................................52 Viewing Posted Gate Entry Inward ...........................................................53 Gate Entry Outward .........................................................................................54 Gate Entry - Outward if the Source Type is Sales Shipment ...........................56 Viewing Posted Gate Entry Outward ........................................................58 Gate Entry - Outward if the Source Type is Purchase Return Shipment .........60 Viewing Posted Gate Entry Outward ........................................................62 Gate Entry - Outward if the Source Type is Transfer Shipment.......................64 Viewing Posted Gate Entry Outward ........................................................66 Gate Entry - Outward if the Source Type is Blank ...........................................68 Viewing Posted Gate Entry Outward ........................................................69 Reports ...............................................................................................................70 Gate Entry .......................................................................................................70 Posted Gate Entry ...........................................................................................73 Gate Entry List.................................................................................................77 Posted Gate Entry List ....................................................................................78 Gate Entry Inward Status .............................................................................79 Appendix.............................................................................................................81
A process in any organization, used to keep track of entrance and exit of materials or other entities, to and from the organizations premises, is termed as Gate Entry. This functionality provides the facility to keep the record of the gate entries (Inward/Outward) of the goods and also helps in relating these entries with the Purchase Order / Sales Order / Return Order / Transfer Orders. The Gate Entry system provides a physical control over the goods, which are the movable assets of the organization. Gate Entry also helps in audit trail.
Detailed Setup
Gate Entry functionality requires a detailed setup, which is used to maintain the number series based on location. Setup Inventory Setup Gate Entry Location Setup Description Select the No Series for Inward Gate Entries and Outward Gate Entries. Select the Posting No Series for the combination of Entry Type and Location Code.
The Gate Entry functionality covers the following points: a) For Gate Entry Inward It provides the facility to create Gate Entry Inward against Purchase Order, Sales Return Order and Transfer Receipt. It provides the facility to create Gate Entry Inward in case of samples, gifts and so on. It provides the facility to attach posted Gate Entry Inward with Purchase Order; Sales Return Order, Transfer Receipt, Purchase Invoice and Sales Credit Memo. It provides the facility to view the attached Gate Entry Inward.
b) For Gate Entry Outward It provides the facility to create Gate Entry Outward against Purchase Return Order, Sales Order and Transfer Shipment
It provides the facility to create Gate Entry Outward in case of repairs, and others. It provides the facility to attach Gate Entry Outward at the time of posting with Purchase Return Order, Sales Order, Transfer Shipment, Sales Invoice and Purchase Credit Memo. It provides the facility to view attached Gate Entry Outward.
Reports
Following reports are provided to solve the needs of the Indian business scenarios: Gate Entry Posted Gate Entry Gate Entry List Posted Gate Entry List
Setups- Gate Entry

Following are the functional areas where setup is required: Inventory Setup Gate Entry Location Setup
Inventory Setup
Navigation: Warehouse Setup Inventory Setup
Fill in the fields on the Numbering tab, according to these guidelines: Fields Inward Gate Entry Nos. Description Select the number series for inward gate entry, from the lookup list. Select the number series for outward gate entry, from the lookup list.
Outward Gate Entry Nos.
By clicking the AssistButton in the Inward / Outward Gate Entry Nos. fields, No. Series form will be opened. You can select the number series for the inward and outward gate entry. When you create new inward and outward gate entry, the selected number series will show the number defined in the No. Series setup. CP-PRTNR-1 is defined in the No. Series setup for Inward Gate Entry Nos. and CP-SORD-1 is defined for Outward Gate Entry Nos. as in the screen below.
Gate Entry Location Setup

Navigation: Warehouse Gate Entry Setup Gate Entry Location Setup
Fill in the fields according to these guidelines: Fields Entry Type Description Choose the entry type from the drop down box. The available options are: Inward and Outward. Choose the location code from the lookup list. You can assign No. Series for blank location code also. Choose the posted number series from the lookup list.
Location Code
Posted No. Series
Choose the entry type as Inward and click the AssistButton to the right of the Location Code field.
Location List window opens in which you can choose the location.
After selecting location, click the AssistButton to the right of the Posting No. Series field.
No. Series window opens, in which you can select the posted number series for the entry type.
In the above screen posted number series has been assigned for entry type: Inward and Outward. This is location specific. Note: If the user is not using Location granule then he can assign the Posted No. Series with blank location code for the entry type: Inward or Outward. In the Gate EntryInward and Outward Card, the user has to keep the location code blank if he wants to post the documents with the number series assigned for blank location code in the setup.
Gate Entry Inward

Navigation: Warehouse Gate Entry Gate Entry Inward
On the Header Fields

No.
Description
Number of Gate Entry- Inward will flow while pressing F3 to create new inward and the number which you have defined in the No. Series will flow in this field. Choose the location code from the lookup list. Enter the station name from which goods are coming to your factory/location. Enter the description (For example: Goods received from Vendor). Enter items description, which you are receiving. Document date will automatically flow and it will be your system date. You can also
Location Code Station From Description Item Description Document Date
Fields
Document Time
Description
change the document date. Document time will automatically flow and it will be your system time. You can also change the document time. Posting date will automatically flow and it will be same as the document date. You can also change the posting date. Posting time will automatically flow and it will be as same as the posting time. User can also change the Posting time. Enter the LR/RR number in this field.
Posting Date
Posting Time
LR/RR No. Enter the LR/RR date in this field. LR/RR Date Vehicle No. Enter the vehicle number, in which goods are coming.
On the Line Fields Challan No. Challan Date Source Type Description Enter the challan number received from goods Enter the challan date in this field. Choose the source type from the drop down box. Available options are: Blank, Sales Return Order, Purchase Order, and Transfer Receipt. It shows that against which document you are receiving goods and maintaining gate entry-inward. If the source type is blank, it means you are receiving the goods against Purchase Invoice, Sales Credit Memo or some other type of goods like samples, gifts, and so on which are not based on any document. Select the Source No. from the lookup list for the selected source type. There is no need to select the Source No. if the source type is blank.
Source No.
Fields Source Name
Description This field shows the source name depending on the source type you have selected. If the source type is selected as Sales Return Order then it will show the customer name. If the source type is selected as Purchase Order then it will show the vendor name. If the source type is Transfer Receipt then it will show the location name. Enter the description in this field, if the source type is blank.
Description
Gate Entry - Inward if the Source Type is Purchase Order

Note: Please create the Purchase Order before creating Gate Entry Inward. Create Gate Entry Inward
Enter the following information while making Gate Entry Inward On the Header No.: Location Code: Station from: Home-00012 Blue New Delhi
Description: Item Description: Document Date: Document Time: Posting Date: Posting Time: LR/RR No.: LR/RR Date: Vehicle No.: On the Line Challan No.: Challan Date: Source Type: Source No.: Source name: Description: Post the Gate Entry Inward
Goods received from Vendor 100 Bicycles 20/01/07 10:28:35 AM 20/01/07 10:28:35 AM A54123 20/01/07 DL 9C P 8888
1201 20/01/07 Purchase Order 106030 Delhi Postmaster P.O. Date 20/01/07
Viewing Posted gate Entry Inward

Navigation: Warehouse Gate Entry History Posted Gate Entry Inward
In the posted Gate Entry Inward window, the Status field on the line level has the value as Open, it means gate entry inward is still open for attachment with the purchase order no. 106030.
You can view the list of posted Gate Entry Inward by clicking Gate Entry menu button in the form and then by clicking the List. You can also create multiple lines in Gate Entry Inward with different source type.
Get Gate Entry Lines

Attach posted gate entry inward with the purchase order you have created earlier and mentioned in the Source No. in Gate Entry Inward.
Navigation: Purchase Order Processing Orders
To get gate entry lines, click Functions menu button and select Get gate Entry Lines menu item in the Purchase Order window. A new form will be opened where you can select the posted gate entry line you want to attach.
Click OK. After attaching gate entry with purchase order, click Order menu button in the Purchase Order window and select the Attached Gate Entry menu item to view the attached gate entry.
A new form opens.
In this form you can view the attached gate entry line that you have attached earlier. Post the Purchase Order.
The user can also view the attached gate entry line from posted purchase receipt.
Navigation: Purchase History Posted Receipt
To view the attached gate entry line, click the Receipt menu button and select the Attached Gate Entry menu item
A new form opens.
In this form you can view the attached gate entry with the purchase order. After posting the purchase order, again view the posted gate entry inward that you have attached with the purchase order.
You can see in the above screen that Status field has value as Closed, after posting the purchase order with gate entry inward.
The user can also get Gate Entry lines from Warehouse Receipts. If the user has posted the purchase order with partial receipt, after posting purchase order and releasing it, this will be available for warehouse receipt.
Create Gate Entry - Inward
Enter the following information while making Gate entry Inward On the Header No.: Location Code: Station From: Description: Item Description: Document Date: Document Time: Posting Date: Posting Time: LR/RR No.: LR/RR Date: Vehicle No.: On the Line Challan No.: Challan Date: Source Type: Source No.: Source name: Post the Gate Entry Inward 1001 20/01/07 Purchase Order 10009 Delhi Postmaster Home-00028 Blue New Delhi Warehouse receipt Bicycles 20/01/07 2:46:39 PM 20/01/07 2:46:39 PM 7412 20/01/07 DL 8P 9632
Warehouse Receipt Navigation: Warehouse Planning & Execution Receipts
To get gate entry lines, click Functions menu button and select Get gate Entry Lines menu item in the Warehouse Receipt window. A new form opens in which you can select the posted gate entry line you want to attach.
Click OK. After attaching gate entry with warehouse receipt, click Receipt menu button and select the Attached Gate Entry menu item in the Warehouse Receipt window to view the attached gate entry.
A new form opens.
In this form you can view the attached gate entry line that you have attached earlier. Post the Receipts. After posting the warehouse receipt, again view the posted gate entry inward that you have attached with the warehouse receipt.
You can see in the above screen shot that Status is Closed now after posting the warehouse receipt with gate entry inward.
Gate Entry - Inward if the Source Type is Sales return Order

Note: Please create the Sales Return Order before creating Gate Entry Inward. Create Gate Entry Inward
Enter the following information while making Gate Entry Inward On the Header: No.: Location Code: Station from: Description: Item Description: Document Date: Document Time: Posting Date: Posting Time: LR/RR No.: LR/RR Date: Vehicle No.: On the Line: Challan No.: Challan Date: Source Type: 80 20/01/07 Sales return Order Home-00015 Blue New Delhi Sales Return from Customer 10 Bicycles 20/01/07 12:07:51 PM 20/01/07 12:07:51 PM 96542 20/01/07 DL 7L 1234
Source No.: Source name: Description: Post the Gate Entry Inward
1005 The Canon Group PLC return Order Date 20/01/07
Viewing Posted Gate Entry Inward

In the Posted Gate Entry Inward window the Status field on the line level has the value as Open, it means gate entry inward is still open for attachment with the sales return order no. 1005. The user can also view the list of posted Gate entry inward by clicking Gate Entry menu button in the form and click list. You can also create multiple lines in Gate Entry Inward with different source types.

Attach posted gate entry inward with the sales return order you have created earlier and mentioned in the source No. in gate entry inward.
Navigation: Sales & Marketing Order Processing Return Orders
To get gate entry lines, click Functions menu button and select Get gate Entry Lines menu item in the Sales Return Order. A new form opens in which you can select the posted gate entry line, you want to attach.
Click OK. After attaching gate entry with Sales Return Order, click Ret. Order menu button and select the Attached Gate Entry menu item to view the attached gate entry in the Sales Return Order.
A new form opens.
In this form you can view the attached gate entry line that you have attached earlier. Post the Sales Return Order.
The user can also view the attached gate entry line from Posted Return Receipt
Navigation: Sales & Marketing History Posted Return Receipt
Click the Return Receipt menu button and select Attached Gate Entry menu item to view the attached gate entry line. After clicking Attached Gate Entry, a new form opens.
In this form, you can view the attached gate entry with return order. After posting the Sales Return Order again you can view the posted gate entry inward that you have attached with the sales return order.
You can see in the above screen that Status field has the value as Closed now; after posting the sales return order with gate entry inward.
Gate Entry - Inward if the Source Type is Transfer Receipt

Note: Please create the Transfer Order before creating gate Entry Inward. Create Gate Entry Inward
Enter the following information while making Gate Entry Inward On the Header No.: Location Code: Station From: Description: Item Description: Document Date: Document Time: Posting Date: Posting Time: LR/RR No.: LR/RR Date: Vehicle No.: On the Line Challan No.: 2501 Challan Date: 15/01/07 Source Type: Transfer Receipt Source No.: 1019 Source name: Green Warehouse Description: Dated 15/01/07 Post the Gate Entry Inward Home-00023 Blue Mumbai Received from Green Location 50 Bicycles 20/01/07 01:40:14 PM 20/01/07 01:40:14 PM MH87452 15/01/07 MH 8L 4125

In the posted Gate Entry Inward window, the Status field on the line level has the value as Open. It means gate entry inward is still open for attachment with the transfer order no. 1019. The user can also view the list of posted Gate entry inward by clicking Gate Entry menu button in the form and click List. You can also create multiple lines in Gate entry inward with different Source Type.

Attach posted gate entry inward with the transfer order you have created earlier and mentioned in the source number in gate entry inward.
To get gate entry lines, click Functions menu button and select Get gate Entry Lines menu item in the Transfer Order window. A new form opens in which you can select the posted gate entry line you want to attach.
Click OK. After attaching gate entry with transfer order, click Order menu button and select the Attached Gate Entry menu item in the Transfer Order window to view the attached gate entry.
A new form opens.
In this form you can view the attached gate entry line that you have attached earlier. Post the Transfer Order as Receive. (First the user has to post the transfer order as Ship and after that he has to post the transfer order as Receive).
You can also view the attached gate entry line from posted Return receipt
Navigation: Warehouse History Posted Transfer Receipt
Click the Receipt menu button and select Attached Gate Entry menu item to view the attached gate entry line.
A new form opens.
In this form you can view the attached gate entry. After posting the transfer order again view the posted gate entry inward that you have attached with the transfer order.
You can see in the above screen that Status field has the value as Close after posting the transfer order with gate entry inward.
Gate Entry - Inward if the Source Type is Blank

Source type as Blank is applicable only if the goods are received against Purchase Invoice or Sales Credit Memo. Otherwise any other goods/items, which are coming in your premises against gifts, samples and so on without any documents.
Create Gate Entry Inward (In case of Purchase Invoice)
Enter the following information while making Gate entry Inward On the Header No.: Location Code: Station from: Description: Item Description: Document Date: Document Time: Posting Date: Posting Time: LR/RR No.: LR/RR Date: Vehicle No.: On the Line Challan No.: Challan Date: Source Type: 0006 20/01/07 Blank Home-00029 Blue New Delhi Received from Vendor Bicycle 20/01/07 4:06:20 PM 20/01/07 4:06:20 PM 85412 20/01/07 DL 2C 1241
Source No.: Source Name: Description: Post the Gate Entry Inward
Blank Blank Invoice to be Prepaired

In the Posted Gate Entry Inward window, the Status field on the line level has the value as Open. It means gate entry inward is still open for attachment with Purchase Invoice. The user can also view the list of posted gate entry inward by clicking Gate Entry menu button in the form and selecting the List. You can also create multiple lines in Gate Entry Inward with different source types.

Attach posted gate entry with Purchase Invoice which is yet to be prepared.
Navigation: Purchase Order Processing Invoices

Create a Purchase Invoice.
To get gate entry lines, click Functions menu button and select Get gate Entry Lines in the Purchase Invoice. A new form opens in which you can select the posted gate entry line you want to attach. The program will show gate entry lines with source type as Blank.
Click OK.
After attaching gate entry with purchase invoice, click Invoice menu button in the Purchase Invoice and select the Attached Gate Entry menu item to view the attached gate entry.
A new form opens.
In this form you can view the attached gate entry line that you have attached earlier. Post the Purchase Invoice.
You can also view the attached gate entry line from the Posted Receipt
Click the Receipt menu button and select the Attached Gate Entry menu item to view the attached gate entry line.
A new form opens.
In this form you can view the attached gate entry. After posting the purchase invoice; again view the posted gate entry inward that you have attached with the purchase invoice.
You can see in the above screen that the Status field has the value as Closed, after posting the purchase invoice with gate entry inward.
Create Gate Entry Inward (In case of Sales Credit Memo)
Enter the following information while making Gate entry Inward On the Header No.: Location Code: Station from: Description: Item Description: Document Date: Document Time: Posting Date: Posting Time: LR/RR No.: LR/RR Date: Vehicle No.: On the Line Challan No.: Challan Date: Source Type: Source No.: Source name: Description: Post the Gate Entry Inward 100 16/01/07 Blank Blank Blank Sales Credit Memo to be Prepared Home-00030 Blue Mumbai Received from Customer Bicycle 20/01/07 4:33:35 PM 20/01/07 4:33:35 PM 63214 16/01/07 MH 8P 7777

In the Posted Gate Entry Inward window the Status field on the line level has the value as Open. It means gate entry inward is still open for attachment with Sales Credit Memo. The user can also view the list of posted gate entry inward by clicking Gate Entry menu button and selecting List in the form. You can also create multiple lines in gate entry inward with different source types.

Note: Attach posted gate entry with Sales Credit Memo which is yet to be prepared. Navigation: Sales & Marketing Order Processing Credit Memos
Create a Purchase Invoice.
To get gate entry lines, click Functions menu button and select Get Gate Entry Lines in the Credit Memo. A new form opens in which you can select the posted gate entry line you want to attach. The program will show the gate entry lines with source type as Blank.
Click OK. After attaching gate entry with credit memo, click Credit Memo menu button and select the Attached Gate Entry in credit memo to view the attached gate entry.
A new form opens.
In this form you can view the attached gate entry line that you have attached earlier. Post the Credit Memo.
You can also view the attached gate entry line from Posted Receipt.
Click the Return Receipt menu button and select Attached Gate Entry menu item to view the attached gate entry line.
A new form opens.
In this form you can view the attached gate entry. After posting the credit memo; again view the posted gate entry inward that you have attached with the credit memo.
You can see in the above screen that the Status field has the value as Close, after posting the credit memo with gate entry inward.
Create Gate Entry Inward (In Case of Gifts and Others without Challan Number)
Enter the following information while making Gate entry Inward On the Header: No.: Location Code: Station from: Description: Item Description: Document Date: Document Time: Posting Date: Posting Time: LR/RR No.: LR/RR Date: Vehicle No.: On the Line Challan No.: Challan Date: Source Type: Source No.: Source name: Description: Post the Gate Entry Inward Blank Blank Blank Blank Blank Gift for CEO from Bank Home-00031 Blue New Delhi Gifts Gift of CEO 20/01/07 4:51:17 PM 20/01/07 4:51:17 PM Blank Blank DL 9J 1234

In the posted Gate Entry Inward window the Status field on the line level has the value as Open. Since there is no document for which this gate entry has been made and it will not further attached with any other document the status will remain Open for this gate entry. The user can also view the list of posted gate entry inward by clicking Gate Entry menu button and click List in the form. You can also create multiple lines in gate entry inward with different source types.
Gate Entry Outward

Navigation: Warehouse Gate Entry Gate Entry Outward
Fill in the fields according to these guidelines: On the Header
Fields
No.
Description
Number which you have defined in the No. Series will flow in this field. while pressing F3 in case of creating new gate entry outward Choose the location code from the lookup list. Enter the station name, to which goods are dispatching from your factory / location. Enter general description in this field (For example: Goods delivered to customer). Enter items description, which you are dispatching. By default the document date will be your system date. You can also change the
Location Code Station To Description Item Description
Document Date
Fields
Document Time
Description
document date. By default the document time will be your system time. You can also change the document time. The program automatically shows the document date in this field. You can also change the posting date. Posting time will automatically flow and it will be as same as the document time. You can also change the posting time. Enter the Lorry Receipt / Railway Receipt number in this field. Enter the Lorry Receipt / Railway Receipt date in this field. Enter the vehicle number or carrier number in this field.
Posting Date
Posting Time
LR/RR No. LR/RR Date Vehicle No.
On the Line Fields Challan No. Challan Date Source Type Description Enter the challan number issued for dispatching goods from your factory. Enter the challan date in this field. Choose the source type from the drop down box. Available options are: Blank, Sales Shipment, Purchase Return Shipment, and Transfer Shipment. Source Type specifies about the document against which you are dispatching goods and maintaining Gate Entry- Outward. If the Source Type field is blank, it means you are dispatching goods for some other purposes like repairing and so on, which are not based on any documents. Source No. Select the source number from the lookup list for the selected source type. There is
Fields
Description no need to select the Source No. field if the source type is blank. This field shows the source name depending on the source type you have selected. If the source type is selected as Sales Shipment then it will show the customer name. If the source type is selected as Purchase Return Shipment then it will show the vendor name. If the source type is Transfer Shipment then it will show the location name. Enter the description in this field, if the source type is blank.
Source Name
Description
Gate Entry - Outward if the Source Type is Sales Shipment

Note: Please create and post the Sales Order / Invoice before creating Gate Entry Outward. Create Gate Entry Outward
Enter the following information while making Gate Entry Outward On the Header No.: Location Code: Station to: Description: Item Description: Document Date: Document Time: Posting Date: Posting Time: LR/RR No.: LR/RR Date: Vehicle No.: On the Line Challan No.: Challan Date: Source Type: Source No.: Source name: Description: 3001 07/02/07 Sales Shipment 102050 The Cannon Group PLC against sales shipment Home-00005 Blue Mumbai Sale of Goods 10 Bicycles 07/02/07 03:05:53 PM 07/02/07 03:05:53 PM 987654 07/02/07 DL 2C B 1234
Post the Gate Entry Outward
Viewing Posted Gate Entry Outward

Navigation: Warehouse Gate Entry History Posted Gate Entry Outward
The program will post the gate entry-outward with detailed information. The program will automatically attach the Gate Entry-Outward with the source number you have entered. You can view the list of posted Gate Entry Outward by clicking the List menu item on the Gate Entry menu button. You can create multiple lines in Gate Entry Outward with different source type.
You can also view the attached gate entry line from the Posted Sales Shipment form.
NAVIGATION: Sales & Marketing History Posted Shipment
To view the attached gate entry line, click the Shipment menu button and select the Attached Gate Entry menu item
A new form opens.
In this form you can view the attached gate entry with the Sales Shipment.
Gate Entry - Outward if the Source Type is Purchase Return Shipment

Note: Please create and post the Purchase Return Order before creating Gate Entry Outward. Create Gate Entry Outward
Enter the following information while making Gate Entry Outward On the Header No.: Location Code: Station to: Description: Item Description: Document Date: Document Time: Posting Date: Posting Time: LR/RR No.: LR/RR Date: Vehicle No.: On the Line Challan No.: Challan Date: Source Type: Source No.: Source name: Description: 3002 07/02/07 Purchase Return Shipment 105012 Delhi Postmaster against purchase return order Home-00006 Blue New Delhi Goods Returned 5 Bicycles 07/02/07 03:26:30 PM 07/02/07 03:26:30 PM 777 07/02/07 DL 2C V 1111

The program will post the Gate Entry-Outward detailed information. The program will automatically attach the Gate Entry-Outward with the source number you have entered. You can view the list of posted Gate Entry Outward by clicking the List menu item on the Gate Entry menu button. You can create multiple lines in Gate Entry Outward with different source type.
You can also view the attached gate entry line from the Posted Return Shipment form.
Navigation: Purchase History Posted Return Shipment
To view the attached gate entry line, click the Attached Gate Entry menu item on the Return Shipment menu button.
A new form opens.
In this form you can view the attached gate entry with the Purchase Return Shipment.
Gate Entry - Outward if the Source Type is Transfer Shipment

Note: Please create and post the Transfer Order before creating Gate Entry Outward. Create Gate Entry Outward
Enter the following information while making Gate Entry Outward On the Header No.: Location Code: Station to: Description: Item Description: Document Date: Document Time: Posting Date: Posting Time: LR/RR No.: LR/RR Date: Vehicle No.: On the Line On the Line Challan No.: Challan Date: Source Type: Source No.: Source name: Description: 3003 07/02/07 Transfer Shipment 108007 Green warehouse Transfer shipment Home-00007 Blue New Delhi Transfer 5 SYDNEY Swivel Chair, green 07/02/07 03:47:29 PM 07/02/07 03:47:29 PM 888 07/02/07 DL 2N D 2222

The program will post the gate entry-outward detailed information. The program will automatically attach the gate entry-outward with the source number you have entered after the posting. You can view the list of posted Gate Entry Outward by clicking the List menu item on the Gate Entry menu button. You can also create multiple lines in Gate Entry Outward window with different source types.
You can also view the attached gate entry line from the Posted Transfer Shipment form.
Navigation: Warehouse History Posted Transfer Shipment
To view the attached gate entry line, click the Shipment menu button and select the Attached Gate Entry menu item A new form opens.
In this form you can view the attached gate entry with the Transfer Shipment.
Gate Entry - Outward if the Source Type is Blank

Note: Create Gate Entry Outward in case, some goods are dispatching from your factory premises for repairing without source document type. Create Gate Entry Outward
Enter the following information while making Gate Entry Outward On the Header No.: Location Code: Station to: Description: Item Description: Document Date: Document Time: Posting Date: Posting Time: On the Line Challan No.: Challan Date: Source Type: Source No.: Source name: Description: 5555 07/02/07 Blank Blank Blank goods dispatching for repairing. Home-00008 Blue Bby Repair 10 Bicycles 07/02/07 04:03:45 PM 07/02/07 04:03:45 PM

The program will post the gate entry outward. In this case program will not attach this gate entry with any source document type.
Reports
Navigation: Warehouse Gate Entry Reports
Gate Entry
Navigation: Warehouse Gate Entry Report Gate Entry

This report will show you the details of unposted Gate Entry Inward/Outward. Enter the following information in the filter options:
On the Gate Entry Header tab: Fields Entry Type Description Select the entry type for which you want to generate report. The available options are: Blank, Inward and Outward. If you want to generate the report for entry type inward then select Inward. If you want to generate report for entry type outward then select Outward and if you want to generate report for both then keep it blank. No. Location code Document Date Click Preview button to generate the report. Enter the number of gate entry for which you want to generate the report. Select the location code for which you want to generate the report. Enter the document date.
Posted Gate Entry

Navigation: Warehouse Gate Entry Report Posted Gate Entry
This report will show you the details of posted Gate Entry Inward/Outward. Enter the following information in the filter options:
Posted Gate Entry Header tab: Fields Entry Type Description Select the entry type for which you want to generate report. The available options are: Blank, Inward and Outward. If you want to generate the report for entry type inward then select Inward. If you want to generate report for entry type outward then select Outward and if you want to generate report for both then keep it blank. No. Location code Posting Date Enter the number of gate entry for which you want to generate the report. Select the location code for which you want to generate the report. Enter the posting date
Posted Gate Entry Line tab: Fields Source Type Description Select the source type for which you want to generate report. The available options are: Sales Shipment, Sales Return Order, Purchase Order, Purchase Return Shipment, Transfer Shipment and Transfer receipt. Select the status for which you want to generate the report. The available options are: Blank, Open and Close.
Status
Click Preview button to generate the report.
Gate Entry List

Navigation: Warehouse Gate Entry Report Gate Entry List
This report will show you the list of unposted Gate Entry Inward/Outward. Enter the following information in the filter options:
On the Gate Entry Header tab: Fields Entry Type Description Select the entry type for which you want to generate report. The available options are: Blank, Inward and Outward. If you want to generate the report for entry type inward then select Inward. If you want to generate report for entry type outward then select Outward and if you want to generate report for both then keep it blank. Location code Document Date Click Preview button to generate the report. Select the location code for which you want to generate the report. Enter the document date.
Posted Gate Entry List

Navigation: Warehouse Gate Entry Report Posted Gate Entry List
This report will show you the list of posted Gate Entry Inward/Outward. Enter the following information in the filter options:
On the Posted Gate Entry Header tab: Fields Entry Type Description Select the entry type for which you want to generate report. The available options are: Blank, Inward and Outward. If you want to generate the report for entry type inward then select Inward. If you want to generate report for entry type outward then select Outward and if you want to generate report for both then keep it blank. Location code Posting Date Click Preview button to generate the report. Select the location code for which you want to generate the report. Enter the posting date
Gate Entry Inward Status

Navigation:
Warehouse Gate Entry Report Gate Entry Inward Status

This report will show the status of Inward gate entries that has been attached or not attached with Source Type. Enter the following information in the filter options:
On Options tab: Fields Source Type Description Select the source type from drop down button for which you want to generate report. The options available are Blank, Return Order, Purchase Order and Transfer receipt. If you select blank option then system will generate the report for all source type. Select the location code for which you want to generate the report.
Location code Click Preview button to generate the report.
Appendix
Case 1 (Gate Entry Inward) 100 bicycles have been received from the vendor in the factory premises with challan number 5001 against the purchase order. Now you are required to make the entry on the gate before entering the goods into the factory premises. Solution:
Create a new Gate Entry Inward and enter the detailed information like: On the Header No.: Location Code: Station from: Description: Item Description: Document Date: Document Time: Posting Date: Posting Time: LR/RR No.: LR/RR Date: Vehicle No.: On the Line Challan No.: Challan Date: Source Type: Source No.: Source name: Description: 5001 20/01/07 Purchase Order 106030 Delhi Postmaster P.O. Date 20/01/07 Home-0001 Blue New Delhi Goods received from Vendor 100 Bicycles 20/01/07 10:28:35 AM 20/01/07 10:28:35 AM A54123 20/01/07 DL 9C P 8888
After that you can attach the posted gate entry inward with the purchase order.
Case 2 (Gate Entry Outward) 100 bicycles have been sold to the customer and goods are dispatching out from your factory premises with challan number 1001 against the sales order. Now you are required to make the entry on the gate before dispatching the goods out from your factory premises. Solution: Create a new Gate Entry Outward and enter the detailed information like: On the Header No.: Location Code: Station from: Description: Item Description: Document Date: Document Time: Posting Date: Posting Time: LR/RR No.: LR/RR Date: Vehicle No.: On the Line Challan No.: Challan Date: Source Type: Source No.: Source name: Description: 1001 20/01/07 Sales Order 106030 Canon Group S.O. Date 20/01/07 Home-0001 Blue New Delhi Goods received from Vendor 100 Bicycles 20/01/07 10:28:35 AM 20/01/07 10:28:35 AM 52141 20/01/07 DL 7C J 7777
The program will automatically attach the gate entry outward with sales order after posting.
Microsoft Business Solutions Navision 4.0- Service Tax on Advance Payment
Table of Contents
Overview...............................................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................3 Service Tax on Advance Payment ....................................................................3 Set-up for Service Tax Functionality .....................................................................4 Service Tax Accounts in Chart of Accounts ......................................................4 Service Tax .......................................................................................................5 Service Tax Groups...........................................................................................6 Service Tax Set Up ...........................................................................................7 Service Tax Registration No..............................................................................8 Company Information ........................................................................................8 Mapping of GL Accounts .................................................................................10 Add Service Tax Component in the Structure Card.........................................11 Transactions of Advance Payment .....................................................................11 Advance Payment made to Vendor.................................................................11 History - Service Tax on Advance Payment made to Vendor .....................14 Purchase Transactions....................................................................................15 Direct Invoices using Purchase Order.........................................................16 History - Advance Payment applied in Purchase Order ..............................18 Advance Payment received from Customer ....................................................25 History - Service Tax on Advance Payment received from Customer.........28 Sales Transactions..........................................................................................29 Direct Invoices using Sales Order...............................................................29 History - Advance Payment applied in Sales Order ....................................31 Refund of Advance Payment...........................................................................37 Reports ...............................................................................................................42 Service Tax on Advance Payment ..................................................................42 Appendix.............................................................................................................44 Accounting of Service Tax on Advance Payment............................................44
Overview
The Service Tax on Advance payment functionality calculates and updates the service tax records, which is required in India for service tax liability and credit availability on advance payments/ receipts.
Detailed Setup
You use the following setups to prepare Service Tax on Advance Payment functionality. Setup Area Chart of Accounts Service Tax Setup Service Tax Rate Structure G/L Mapping Description Service tax accounts are defined here Service group code and service tax registration number are created here Rates of service tax are to be defined in the Tax Setup Structure to be created based on service tax Service input account and service output accounts are to be mapped with the service tax group
The focus of this functionality to enable calculation of Service Tax on Advance Payment received from the customer and advance payment made to the vendor. This functionality is applicable when you provide a checkmark on Serv. Tax on Advance Payment filed with other information like Service tax Group code and Service Tax Registration No. When you create invoice and apply the advance payment, Dynamics NAV will calculate the service tax considering the advance payment amount and the service tax amount involved in it, so that the service tax liability and the service tax credit amount remain accurate.
Report Service Tax on Advance Payment

This report shows the details of advance payment received or made according to the checkmark provided on Serv. Tax on Advance Payment field while creating journals. In this report you can find if the advance payment received or made has been applied against invoices or not.
Set-up for Service Tax Functionality

Service Tax Accounts in Chart of Accounts
Create the Service Tax G/L Accounts which are compulsory for the Service Tax Setup:
Navigation: General Ledger Chart of Accounts
Types of Service Tax G/L Account you need to create for the Service Tax Setup are: Service Tax Payable Account: All service tax liability on output service sales will be transferred to this account from the interim account, after passing a payment from customer that has been applied against the sales invoice. Service Tax Receivable Account: All input service tax credit on purchases ultimately will be transferred to this account from the interim account, after passing a payment to vendor and applying the same against the purchase invoice. Service Tax Payable Interim Account: All sales related service tax entries are posted in this account for the service tax amount charged temporarily. The amount gets transferred to the Service Tax Payable account after passing a payment entry which has been applied against the particular sales invoice. Service Tax Receivable Interim Account: Service Tax Receivable Interim account is a control account, which gets recorded on posting of an invoice and gets knocked off at the time of passing of a payment that applied against the vendor purchase invoice
Service Tax
Navigation: General Ledger Setup Service Tax
You can create the Service Tax setup for both of Excise as Service Credit and Service Tax as Excise Credit.
Service Tax Groups

Navigation: General Ledger Setup Service Tax Tax Group
Service Tax Group defines the nature of services for which service tax are applicable.
Define service tax groups according to your business scenario or services. For example: Banking and finance services, Advertisement services, Job work, and so on. Fill in the fields according to these guidelines: Field Code Description Description Define the service tax group code. Describe the name of the service tax group.
Service Tax Set Up

Navigation: General Ledger Setup Service Tax Tax Setup
Fill in the fields according to these guidelines: Field Code From date Percentage Percentage (eCess) Percentage (SHE eCess) Service Tax Receivable Account Service Tax Payable Account Receivable Account (Interim) Payable Account (Interim) Description Choose the service tax group from the drop down list. Specify the effective date from which the service tax rate becomes applicable. Specify the service tax rate percentage applicable for the service tax group. Specify the education cess rate applicable for the service tax group Specify the secondary and higher education cess rate applicable for the service tax group Choose the Service Tax Receivable account, where an input credit is recorded. Choose the Service Tax Payable account. Choose the Service Tax receivable account (Interim). Choose the Service Tax Payable account (Interim).
Service Tax Registration No.

Navigation: General Ledger Setup Service Tax Tax Registration No.
Fill in the fields according to these guidelines: Field Service Tax Registration No. Description Define the various service tax registration no. as per location from where you provide services.
Company Information
According to the business scenario, specify a registration number either in the Company Information or in the Location Card. Specify service tax registration number in the Company Information if centralized billing is applied, or specify registration number in the Location Card if decentralized billing and multi-location environment are applied.
Navigation: Administration Application Setup General Company Information

Attach a service tax registration number on the Others tab of the Company Information.
Navigation: Administration Application Setup Warehouse Locations
Note: By default the program takes the registration number attached in the Company Information card in all transaction screens if location field is left blank. If the billing
location is specified then the program will take the service tax registration number of the respective location.
Mapping of GL Accounts
In the GL Account card, different accounts are created for various types of services. Relevant service tax groups are to be attached with the specific G/L accounts on the Posting tab.
Fill in the fields according to these guidelines: Field Service Tax Group Code Note: As there is a one to one mapping between the services group and GL accounts, you need to create as many GL accounts for each of the services. For example: If you are providing chartered accountant services and also providing financial services, then you need to create two GL accounts, to cater to both the services. Even when availing services, you need to create as many GL accounts in your purchases so that each service should be mapped. Description Select the relevant service tax group for the GL account.
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Add Service Tax Component in the Structure Card

Navigation: General Ledger Setup Structure Structure
Include Service Tax in the structure card, as done for taxes like Excise and Sales Tax.
Transactions of Advance Payment

Advance Payment made to Vendor
Navigation: Financial Management General Ledger General Journal
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In case of Service Tax on Advance Payment, the following fields are mandatory: Field Document Type Serv. Tax on Advance Payment Description You should specify the Document Type as Payment while recording advance payment. You should provide a check mark on this field while making advance payment. The program enables the service tax calculation functionally based on this check mark. Select the service tax group code in this field. According to the service tax group code the percentage of service tax and eCess will be captured to calculate the service tax on advance payment. Specify a service tax registration number here. You should refer the service tax registration number to enable the program to maintain service tax record according to the service tax registration number. Select the E.C.C No. in this filed. You should provide the E.C.C. number if you want to utilize service tax as excise credit against discharging excise liability.
Service Tax Group Code
E.C.C. No.
Enter the following information in the General Journal: Document Type Document No. Serv. Tax on Advance Payment Account Type Account No. Service Tax Group Code Service Tax Registration No. Bal. Account No. Payment Program will assign number from number series setup Please a check mark on this field Vendor Select the vendor code from the list ADV HXJ118910111357 Select Cash/Bank account
While making an advance payment to vendors through the General Journal, you should mark Serv. Tax on Advance Payment to allow the program to calculate service tax on the advance payment made. You also require mentioning service tax group code and service tax registration number in the general journal. Note: You should not apply the advance payment with any other document. Program will generate an error message and will not post the document if you use application functionality on this document. Press CTRL+F8 to see the detail calculation of service tax on the advance payment on this transaction.
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In the above screen, the calculation of service tax on advance payment is displayed. The entry will be reflected in the Service Tax Entry table, so that service tax credit gets recorded to the extent of the advance payment made to vendor. Post the general journal.
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History - Service Tax on Advance Payment made to Vendor

Navigation: Financial Management General Ledger History Navigate
Select the Service Tax Entry line and then click Show to view the service tax details.
Select the G/L Entry line and then click Show to view the accounting affect of the advance payment made to vendor.
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The above payment entry has made the following GL entry in the program: Description Vendor Account Bank/Cash Account Dr/Cr Dr Cr Amount 11030.00 11030.00
Note: In case of advance payment made to vendor with the checkmark on Serv. Tax on Advance Payment, Dynamics NAV will not create any GL entry for Service Tax Receivable Interim Account or Service Tax Receivable Account. But Service Tax Entry table will be updated to keep track of advance payment made to vendor.. You also could use the following templates to create payments to vendor where service tax on advance payment could be calculated. a) Payment Journal b) Cash Payment Voucher c) Bank Payment Voucher
Purchase Transactions
The advance payment made to the vendor could be applied to the purchase invoice to enable the program to update the service tax table. In normal business scenario there could be two examples of advance payment made, 100 % payment made in advance or partial advance made against an input service. In the following examples both the scenario will be discussed
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Direct Invoices using Purchase Order

Navigation: Purchases Order Processing Order
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Enter the following details on the Purchase Order header: Buy-from Vendor No Location Code Structure Choose a vendor from the list. Keep this field blank Select structure denoting Service Tax
Enter the following details on the Purchase Order line: Type No. Quantity Direct Unit Cost Excl. VAT Service Tax Registration No. G/L account Select input service G/L Account which is mapped with Service Tax Group 1 10000 The program will capture the service tax registration number from the Company Information as you kept the Location field blank. If Location is specified, the program will capture the service tax registration number from the Location Card.
Enter the following details on the Purchase Order Application Tab: Field Applies-to Doc. Type Applies-to Doc. No. Description You should select the Payment type here. Select the appropriate advance payment made to the vendor that has been posted with the mark on Serv. Tax on Advance Payment.
Note: 1. In the above purchase order form, since the General Ledger is already mapped to a Service Tax Group, the program will calculate the service tax amount. However the service tax computation will happen only after attaching a structure, with service tax component. 2. Program will validate the service tax group code and service tax registration number entered in the purchase order with the payment document applied. If the service tax group code or service tax registration number of advance payment document is different than the purchase order, program will not allow you to post the purchase order and will generate error message. 3. At the time of posting the invoice, program will consider the amount of service tax on advance payment document. If the program finds the applied payment document which has been posted with a mark on Serv. Tax on Advance Payment, will then calculate the service tax, service tax eCess and service tax SHE eCess amount based on the service tax, service tax eCess and service tax SHE eCess amount involved in the applied advance payment. Click Functions Calculate Structure Values Post the purchase order
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History - Advance Payment applied in Purchase Order

The posted information of purchase invoice where advance payment is applied would be stored in service tax entry tables.
Navigation: Purchases History Posted Invoices
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Click Navigate to view the details of the entry that have been posted.
In the above window you can see that there is no service tax entry. The program already made a service tax entry while the advance payment made to vendor with a checkmark on Serv. Tax on Advance Payment. At the time of posting the above purchase document you have applied with similar nature of advance payment document If the invoice amount is lesser than or equal to the advance payment document amount, the program will not generate any service tax entry, but will create a GL entry as mentioned below: Select the G/L Entry line in the Navigate form and then click Show to view the G/L entry. Program will display the following General Ledger details: Description Advertisement Account Service Tax Receivable Account Vendor Domestic Account Dr/Cr Dr Dr Cr Amount 10000.00 1030.00 11030.00
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The program calculates the Service Tax as per the setup below: Service Tax %: Service Tax Base: Service Tax Amount Service Tax eCess %: Service Tax eCess Amount: Service Tax SHE eCess %: Service Tax SHE eCess Amount: Amount To Vendor: 10 10,000 1,000 2 20 1 10 11,030
Now take up the scenario where the invoice amount is greater than the advance payment made the program will calculate the service tax on the remaining amount of advance payment made. Create another Advance Payment to Vendor according to the example below. Navigate to General Journal. Enter the following information in the General Journal: Document Type Document No. Serv. Tax on Advance Payment Account Type Account No. Service Tax Group Code Service Tax Registration No. Amount Bal. Account Type Bal. Account No. Post the advance payment document. Payment Program will assign number from number series setup Please a check mark on this field Vendor Select the vendor code from the list ADV HXJ118910111357 11,030 GL Account Select Cash/Bank account
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Create purchase invoice using Purchase Order form according to the example given below and apply the advance payment that you have posted assuming you have made a payment of 50 % advance. Navigate to Purchase Order. Enter the following details on the Purchase Order header: Buy-from Vendor No Location Code Structure Choose a vendor from the list. Keep this field blank Select structure denoting Service Tax
Enter the following details on the Purchase Order line: Type No. Quantity Direct Unit Cost Excl. VAT Service Tax Registration No. G/L account Select input service G/L Account which is mapped with Service Tax Group 1 20000 The program will capture the service tax registration number from the Company Information as you kept the Location field blank. If Location is specified, the program will capture the service tax registration number from the Location Card.
Enter the following details on the Purchase Order Application Tab: Field Applies-to Doc. Type Applies-to Doc. No. Description You should select the Payment type here. Select the appropriate advance payment made to the vendor that has been posted with the mark on Serv. Tax on Advance Payment.
Click Functions Calculate Structure Values Post the purchase invoice See the posted information of the purchase entry made to understand how the program is managing the Service Tax on Advance payment where the invoice amount is greater than the advance payment made.
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Select the Service Tax Entry line in the Navigate form and then click Show to view the service tax entry.
Select the G/L Entry line in the Navigate form and then click Show to view the G/L entry
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Program will display the following General Ledger details: Description Advertisement Account Service Tax Receivable Interim Account Service Tax Receivable Account Vendor Domestic Account The program calculates the Service Tax as per the setup: Service Tax %: 10 Service Tax Base: 20,000 Service Tax Amount 2,000 Service Tax eCess %: 2 Service Tax eCess Amount: 40 Service Tax SHE eCess %: 1 Service Tax SHE eCess Amount: 20 Amount To Vendor: 22,060 Dr/Cr Dr Dr Dr Cr Amount 20000.00 1030.00 1030.00 22060.00
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Advance Payment received from Customer

In case of Service Tax on Advance Payment the following fields are important Field Serv. Tax on Advance Payment Description You should provide a mark on this field. The program enables the service tax calculation functionally based on this check mark. Select the service tax group code in this field. According to the service tax group code the percentage of service tax and eCess will be captured to calculate the service tax on advance payment. Specify a service tax registration number here. You should refer the service tax registration number to enable the program to maintain service tax record according to the service tax registration number. Select the E.C.C No. in this filed. You should provide the E.C.C. number if you want to utilize service tax as excise credit against discharging excise liability.
E.C.C. No.
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Enter the following information in the General Journal: Document Type Document No. Serv. Tax on Advance Payment Account Type Account No. Service Tax Group Code Service Tax Registration No. Bal. Account No. Payment Program will assign number from number series setup Please a check mark on this field Customer Select the customer code from the list ADV HXJ118910111357 Select Cash/Bank account
While creating an advance payment from customer using the General Journal, you should mark Serv. Tax on Advance Payment to allow the program to calculate service tax on the advance payment made. You are also required to mention service tax group code and service tax registration number in the general journal. Note: You should not apply the advance payment with any other document. Program will generate an error message and will not post the document if you use application functionality on this document. Press CTRL+F8 to see the detail calculation of service tax on the advance payment on this transaction.
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The above window is displaying the calculation of service tax on advance payment. The entry will be reflected in the Service Tax Entry table, so that service tax liability gets recorded to the extent of the advance payment received from customer. Post the general journal.
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History - Service Tax on Advance Payment received from Customer

Select the Service Tax Entry line and then click Show to view the service tax details.
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Select the G/L Entry line and then click Show to view the accounting affect of the advance payment received from customer.
The above payment entry has made the following GL entry in the program: Description Bank/Cash Account Customers Domestic Account Service Tax Payable Account Service Tax Payable Interim Account Dr/Cr Dr Cr Cr Dr Amount 11030.00 11030.00 1030.00 1030.00
You also could use the following templates to create payments from customer where service tax on advance payment could be calculated. a) Cash Receipt Journal b) Cash Receipt Voucher c) Bank Receipt Voucher
Sales Transactions
The advance payment received from the customer could be applied to the sales invoice to enable the program to update the service tax table. In normal business scenario there could be two examples of advance received, 100 % advance received or partial advance received against a service deal. In the following examples both the scenario will be discussed.
Direct Invoices using Sales Order

Navigation: Sales & Marketing Order Processing Order
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Enter the following details on the Sales Order header: Sell-to Customer No Location Code Structure Choose a customer from the list. Keep this field blank Select structure denoting Service Tax
Enter the following details on the Sales Order line: Type No. Quantity Unit Price Excl. VAT Service Tax Registration No. G/L account Select input service G/L Account which is mapped with Service Tax Group 1 50000 The program will capture the service tax registration number from the Company Information as you kept the Location field blank. If Location is specified, the program will capture the service tax registration number from the Location Card.
Enter the following details on the Sales Order Invoice Tab: Field Applies-to Doc. Type Applies-to Doc. No. Description You should select the Payment type here. Select the appropriate advance payment received from the customer that has been posted with the mark on Serv. Tax on Advance Payment.
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Note: 1. In the above sales order form, since the General Ledger is already mapped to a Service Tax Group, the program will calculate the service tax amount. However the service tax computation will happen only after attaching a structure, with service tax component. 2. Program will validate the service tax group code and service tax registration number entered in the sales order with the advance payment received document applied. If the service tax group code or service tax registration number of advance payment document is different than the sales order, program will not allow you to post the sales order and will generate error message. 3. At the time of posting the invoice, program will consider the amount of service tax on advance payment. If the program finds the applied payment document which has been posted with a mark on Serv. Tax on Advance Payment, will then calculate the service tax and service tax eCess amount based on the service tax and service tax eCess amount involved in the applied advance payment. Click Functions Calculate Structure Values Post the sales order
History - Advance Payment applied in Sales Order

The posted information of purchase invoice where advance payment is applied would be stored in service tax entry tables. When you click on the Navigate button in the posted invoice entries, you will find that the program has made an entry in the Service Tax Entry Table.
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Navigation: Sales & Marketing History Posted Invoices
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In the above window you can see that there is no service tax entry. The program already recorded a service tax entry with the advance payment document, which has been applied to this sales order. If the invoice amount is lesser than or equal to the advance payment made, the program will not generate any service tax entry. Select the G/L Entry line in the Navigate form and then click Show to view the G/L entry. Program will display the following General Ledger details: Description Customers Domestic Account Service Tax Payable Interim Account Advertisement Account Dr/Cr Dr Cr Cr Amount 11,030.00 1,030.00 10,000.00
The program calculates the Service Tax as per the setup below: Service Tax %: Service Tax Base: Service Tax Amount Service Tax eCess %: Service Tax eCess Amount: Service Tax SHE eCess %: Service Tax SHE eCess Amount: 10 10,000 1,000 2 20 1 10
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Now take up the scenario where the invoice amount is greater than the advance payment received the program will calculate the service tax on the remaining amount of advance payment made. Create another Advance Payment received from Customer according to the example below. Navigate to General Journal. Enter the following information in the General Journal: Document Type Document No. Serv. Tax on Advance Payment Account Type Account No. Service Tax Group Code Service Tax Registration No. Amount Bal. Account Type Bal. Account No. Post the advance payment document. Create sales invoice using Sales Order form according to the example given below and apply the advance payment that you have posted assuming you have received a payment of 50 % advance. Navigate to Sales Order. Enter the following details on the Sales Order header: Sell-to Customer No Location Code Structure Choose a customer from whom you have received the advance payment. Keep this field blank Select structure denoting Service Tax Payment Program will assign number from number series setup Please a check mark on this field Customer Select the customer code from the list ADV HXJ118910111357 -22,060 GL Account Select Cash/Bank account
Enter the following details on the Sales Order line: Type No. Quantity Unit Price Excl. VAT Service Tax Registration No. G/L account Select input service G/L Account which is mapped with Service Tax Group 1 40000 The program will capture the service tax registration number from the Company Information as you kept the Location field blank. If Location is
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specified, the program will capture the service tax registration number from the Location Card. Enter the following details on the Purchase Order Invoice Tab: Field Applies-to Doc. Type Applies-to Doc. No. Description You should select the Payment type here. Select the appropriate advance payment made to the vendor that has been posted with the mark on Serv. Tax on Advance Payment.
Click Functions Calculate Structure Values Post the purchase invoice See the posted information of the sales entry made to understand how the program is managing the Service Tax on Advance payment where the invoice amount is greater than the advance payment received.
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Select the Service Tax Entry line in the Navigate form and then click Show to view the service tax entry.
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Program will display the following General Ledger details: Description Customers Domestic Account Service Tax Payable Interim Account Advertisement Account Dr/Cr Dr Cr Cr Amount 44120.00 4120.00 40000.00
The program calculates the Service Tax as per the setup below: Service Tax %: Service Tax Base: Service Tax Amount Service Tax eCess %: Service Tax eCess Amount: Service Tax SHE eCess %: Service Tax SHE eCess Amount: 10 40,000 4,000 2 80 1 40
Refund of Advance Payment

There could be a business scenario where you need to refund the entire or partial amount you have received or paid as advance payment. In that case the service tax amount calculated and stored, when advance payment made or received in the service tax register, must be reversed accordingly. You will see how Dynamics NAV manages the scenario, say, you have received an advance payment from you customer. Create the advance payment as per the following example.
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Enter the following information in the General Journal: Document Type Document No. Serv. Tax on Advance Payment Account Type Account No. Service Tax Group Code Service Tax Registration No. Amount Bal. Account No. Post the general journal. The program has created service tax entry details; your service tax liability is increased accordingly after this advance payment has been posted. Suppose there is a dispute and you need to refund the entire amount to the customer, then you also need to reduce your service tax liability accordingly. Payment Program will assign number from number series setup, say G00333 Please a checkmark on this field Customer Select the customer code from the list ADV HXJ118910111357 -11,030.00 Select Cash/Bank account
In case of creating a refund against Service Tax on Advance Payment, the following fields are mandatory:
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Field Serv. Tax on Advance Payment
Description You should provide a checkmark on this field. The program enables the service tax calculation functionally based on this checkmark. Select the service tax group code in this field. According to the service tax group code the percentage of service tax and eCess will be captured to calculate the service tax on the refund amount. Specify a service tax registration number here. You should refer the service tax registration number to enable the program to maintain service tax record according to the service tax registration number.
Enter the following information in the General Journal: Document Type Document No. Serv. Tax on Advance Payment Account Type Account No. Service Tax Group Code Service Tax Registration No. Amount Bal. Account No. Applies-to Doc. Type Applies-to Doc. No. Post the refund Document. View the posted information of Refund that you have posted recently. Refund Program will assign number from number series setup, say G00068 Please a checkmark on this field Customer Select the customer code from the list ADV HXJ118910111357 11,030.00 Select Cash/Bank account Payment G00333
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Select the Service Tax Entry line in the Navigate form and then click Show to view the Service Tax Entry.
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Program will display the following General Ledger details: Here all the entry has been reversed in terms of the advance payment received from the customer: Description Customers Domestic Account Service Tax Payable Account Service Tax Payable Interim Account Bank/Cash Account Dr/Cr Dr Dr Cr Cr Amount 11,030.00 1,030.00 1,030.00 11,030.00
Now, if you compare the GL entry of the advance payment received from customer that you have posted recently, the GL entry will be as below. Description Bank/Cash Account Service Tax Payable Interim Account Service Tax Payable Account Customers Domestic Account Dr/Cr Dr Dr Cr Cr Amount 11,030.00 1,030.00 1,030.00 11,030.00
The above mentioned example was for full refund against the advance payment received. Dynamics NAV can also manage the scenario where the partial amount is refunded. You will have to follow the same procedure of refunding against the advance payment received, but the amount will be less the advance payment received. In case of refund to vendor against the advance payment made, Dynamics NAV will allow you to use the functionality as above.
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Reports
Service Tax on Advance Payment
Navigation: Financial Management General Ledger Report Service Tax Reporting Service Tax on Advance Payment
Enter the following information in the Report Request form: Field Description Customer/Vendor Choose an option from dropdown list as Customer or Vendor. Customer Code Select Customer from the list for which you want to generate the report Vendor Cose Select Vendor from the list for which you want to generate the report Starting Date Enter date (from which date the report to be generated) Ending Date Enter date (to which date the report to be generated) The program will generate the report as below:
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The above report displays following key information: Amount: Amount denotes the advance payment received from the customer. Applied Amount: Applied Amount denotes the amount applied against any document. Remaining Amount: Remaining Amount denotes the balance amount after application.
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Appendix
Accounting of Service Tax on Advance Payment
XYZ Ltd. enters into a quarterly agreement on 01/04/2006 with ABC Ltd to provide Legal consulting service. It was decided that XYZ Ltd. will raise an invoice of INR 2, 00,000 after rendering of services. On 15/04/2006 ABC Ltd. pays INR.50, 000 for advance against services. XYZ Ltd. starts rendering consulting on 15/05//2006. The rate of service tax is 10% and e-Cess rate is 2%. (a) The following financial entry will appear in the books of service provider at the time of posting of payment Journal for advance. Account Bank (Advance against Service) Customer Interim Service tax Payable Interim E-Cess on Service tax payable Service tax Payable E-Cess on Service Tax payable DR 50,000 50,000 6,000 120 6,000 120 CR
(b) At the time of invoice of services, the entry would be as follows: Account Customer Sales service (Consulting) Interim Service tax Payable Interim E-Cess on Service tax payable DR 2,24,480 2,00,000 24000 480 CR
(c) At the time of receipt of balance payment, the financial entry will appear as follows: Account Bank Customer Interim Service tax Payable Interim E-Cess on Service tax payable Service tax Payable E-Cess on Service Tax payable DR 1,50,000 1,50,000 18,000 360 18,000 360 CR
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Microsoft Business Solutions Navision 4.0- Excise as Service Tax Credit
Table of Contents
Overview:........................................................................................................................... 4 Detailed Setup: ................................................................................................................. 4 Comprehensive Functionality:........................................................................................ 5 Input Service Details.................................................................................................... 5 Set-up for Service Tax Functionality ............................................................................. 5 Service Tax Accounts in Chart of Accounts:............................................................ 5 Service Tax ................................................................................................................... 6 Service Tax Groups ..................................................................................................... 7 Service Tax Set Up: ..................................................................................................... 8 Service Tax Registration No.: .................................................................................... 9 Company Information: ............................................................................................... 10 Mapping of GL Accounts:.......................................................................................... 11 Add Service Tax component in the Structure Card: ............................................. 12 Transactions of Input Service and Output Service ................................................... 12 Purchase Transactions.............................................................................................. 13 Direct Invoices using Purchase Invoices........................................................... 13 Service Tax Entry History Purchase Invoice ................................................. 15 The above purchase entries have affected the following GL account:......... 17 Payments using Payment Journal ...................................................................... 17 Service Tax Entry History Payment ................................................................ 18 Sales Transactions .................................................................................................... 20 Direct Invoices using Sales Invoices.................................................................. 20 Service Tax Entry History - Sales Invoice ......................................................... 22 Payments using Receipt Journal ........................................................................ 24 Service Tax Entry History - Receipt ................................................................... 25 Excise as Service Tax Credit ....................................................................................... 27 Implication for the Service Provider ........................................................................ 27 Purchase Order ..................................................................................................... 27 Periodical Activities for managing Excise as Service Tax Credit and Service Tax Payment ............................................................................................................... 33 Excise as Service Tax Credit: ............................................................................. 33 Payment of Service Tax and Excise as Service Tax Credit:............................... 34 Service Tax as Excise ................................................................................................... 41 Implication for the Manufacturers ............................................................................ 41 Purchase Order ..................................................................................................... 42 Periodical Activities for managing Service Tax as Excise Credit and Excise Duty Payment ............................................................................................................. 43 Service Tax as Excise Credit: ............................................................................. 43 Payment of Excise Duty and Service Tax as Excise Credit:............................... 45 Update Challan Details.................................................................................................. 50 Reports............................................................................................................................. 50
Input Service Details.................................................................................................. 50 Appendix.......................................................................................................................... 52 Accounting of Service Tax ........................................................................................ 52
Overview:
Earlier service tax incurred on input service was allowed as credit, which might be utilized for the payment of service tax on output service. The service tax credit can only be utilized for payment of output service tax. Total service tax credit available as on the last date of the month can be used to discharge the service tax liability of the month. In case of individual or partnership firm assesees, the service tax credit as on the last date of the quarter can be utilized to discharge the service tax liability of the quarter. Presently the concern providing the output service using inputs (goods) and input services can avail the credit of the excise duty paid on the inputs and service tax paid on the services to discharge the service tax liability. Similarly the manufacturing concern can take credit on the service tax paid on the input services which are used for manufacturing and can use the service tax credit to discharge the excise liability.
Detailed Setup:
You use the following setups to incorporate Excise as Service Tax Credit and Service Tax as Excise Credit functionality in your organization. Setup Area Chart of Accounts Service Tax Setup Service Tax Rate Structure G/L Mapping Description Service tax accounts are defined here. Service group code and service tax registration number are to be created here Rates of service tax are to be defined in the Tax Setup. Structure to be created based on service tax. Service input account and service output accounts are to be mapped with the service tax group
Comprehensive Functionality:
The focus of this functionality is to utilize the availed Excise as Service Tax Credit and Service Tax as Excise Credit. This functionality is completely optional and it includes: Setup for both Service Tax as Excise and Excise as Service Tax will be done in the Periodical Activity application area. Provision for selecting the excise entries or service tax entries to facilitate the use of the availed credits in discharging the excise or service tax liability based on the setup.
Report
Input Service Details

This report shows the details of Credit Availed and Credit Utilised. The service tax credit opening, credit taken, credit utilized, and closing balance show the amount you have availed and utilized either for Service Tax as Excise Credit while paying excise duty or for credit utilized against the payment of service tax. This report also shows the balance of credit availed amount.
Set-up for Service Tax Functionality
Service Tax Accounts in Chart of Accounts:

Create the Service Tax G/L accounts which are compulsory for the Service Tax Setup:
Types of Service Tax G/L account you need to create for the Service Tax Setup are: Service Tax Payable Account: All service tax liability on output service sales will be transferred to this account from the interim account, after passing a payment from customer that has been applied against the sales invoice. Service Tax Receivable Account: All input service tax credit on purchases ultimately will be transferred to this account from the interim account, after passing a payment to vendor and applying the same against the purchase invoice. Service Tax Payable Interim Account: All sales related service tax entries are posted in this account for the service tax amount charged temporarily. The amount gets transferred to the Service Tax Payable account after passing a payment entry which has been applied against the particular sales invoice. Service Tax Receivable Interim Account: Service Tax Receivable Interim account is a control account, which gets recorded on posting of an invoice and gets knocked off at the time of passing of a payment that applied against the vendor purchase invoice
Service Tax
Navigation: General Ledger Setup Service Tax
You can create the Service Tax setup for both of Excise as Service Credit and Service Tax as Excise Credit.
Service Tax Groups

Navigation: General Ledger Setup Service Tax Tax Group
Service Tax Group defines the nature of services for which service tax are applicable.
Define service tax groups according to your business scenario or services. For example: Banking and finance services, Advertisement services, Job work, and so on. Fill in the fields according to these guidelines: Field Code: Description: Description Define the service tax group code. Describe the name of the service tax group.
Service Tax Set Up:

Navigation: General Ledger Setup Service Tax Tax Setup
Fill in the fields according to these guidelines: Field Code From date Percentage Percentage (eCess) Percentage (SHE eCess) Service Tax Receivable Account Service Tax Payable Account Receivable Account (Interim) Payable Account (Interim) Description Choose the service tax group from the drop down list. Specify the effective date from which the service tax rate becomes applicable. Specify the service tax rate percentage applicable for the service tax group. Specify the education cess rate applicable for the service tax group Specify the secondary and higher education cess rate applicable for the service tax group Choose the Service Tax Receivable account, where an input credit is recorded. Choose the Service Tax Payable account. Choose the Service Tax receivable account (Interim). Choose the Service Tax Payable account (Interim).
Service Tax Registration No.:

Navigation: General Ledger Setup Service Tax Tax Registration No.
Fill in the fields according to these guidelines: Field Service Tax Registration No. Description Define the various service tax registration no. as per location from where you provide services.
Company Information:
According to your business scenario, specify registration number either in the Company Information or in the Location Card. You can specify service tax registration number in the Company Information if centralized billing is applied or specify registration number in the Location Card if decentralized billing and multi-location environment are applied.

Attach a service tax registration number on the Others tab of the Company Information.
Navigation: Administration Application Setup Warehouse Locations
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Note: By default the program takes the registration number attached in the Company Information card in all transaction screens if location field is left blank. If the billing location is specified then the program will take the service tax registration number of the respective location.
Mapping of GL Accounts:
Mapping of GL Accounts to Service Tax Groups: In the GL Account card different accounts are created for various types of services. Relevant service tax groups are to be attached with the specific G/L accounts on the Posting tab.
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Fill in the fields according to these guidelines: Field Service Tax Group Code: Description Select the relevant service tax group for the GL account.
Note: As there is a one to one mapping between the services group and GL accounts, you need to create as many GL accounts for each of the services. For example: If you are providing chartered accountant services and also providing financial services, then you need to create two GL accounts, to cater to both the services. Even when availing services, you need to create as many GL accounts in your purchases so that each service should be mapped.
Add Service Tax component in the Structure Card:

Navigation: General Ledger Setup Structure Structure
Include Service Tax in the structure card, as done for taxes like Excise and Sales Tax.
Transactions of Input Service and Output Service

In this section, you can understand how the program stores the service (purchase / sales) related entries, Service Tax Credit Availed, and Service Tax Liability
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In this section, you can also understand how the Service Tax Interim accounts are affected through different transactions.
Direct Invoices using Purchase Invoices

Enter the following details on the Purchase invoice/order header: Buy-from Vendor No Location Code Structure Choose a vendor from the list. Keep this field blank Select structure denoting Service Tax
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Enter the following details on the Purchase invoice line: Type No. Quantity Direct Unit Cost Excl. VAT Service Tax Registration No. G/L account Select input service G/L Account which is mapped with Service Tax Group 1 100000 The program will capture the service tax registration number from the Company Information as you kept the Location field blank. If Location is specified, the program will capture the service tax registration number from the Location Card.
(In the above window, since the GL account 8410 is already mapped to a Service Tax Group, the program will calculate the service tax amount. However the service tax computation will happen only after attaching a structure, with service tax component.)
Click Functions Calculate Structure Values

To view the computed Service Tax details press F9 (Statistics).
Post the purchase invoice
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Service Tax Entry History Purchase Invoice

Service Tax Entry Table stores all the purchase invoices involved in the service tax. It stores the posted invoice number and the posting date along with the service tax details like: service tax group, service tax registration number, service tax amount, and so on. When you click on the Navigate button in the posted invoice entries, you will find that the program has also made an entry in the Service Tax Entry table.
Navigation: Purchases History Posted Invoices
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Select the Service Tax Entry line and then click Show to view the service tax entry.
Select the G/L Entry line in the Navigate form and then click Show to view the G/L entry.
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The above purchase entries have affected the following GL account: Description Advertisement Account Service Tax Receivable Interim Account Vendor Domestic Account Calculation of Service Tax as per the structure below: Service Tax %: 10 Service Tax Base: 100,000 Service Tax Amount 10,000 Service Tax eCess %: 2 Service Tax eCess Amount: 200 Service Tax SHE eCess %: 1 Service Tax SHE eCess Amount: 100 Amount To Vendor: 110,300 Dr/Cr Dr Dr Cr Amount 100000.00 10300.00 110300.00
Payments using Payment Journal

Navigation: Financial Management Payables Payment Journal
Note: While making payments using General Journal/Payment Journal, please ensure that the Document Type is selected as Payment, otherwise the service tax credit will not be updated.
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Enter the following information in the Payment Journal: Document Type Document No. Account Type Account No. Bal. Account No. Applies-to Doc. Type Applies-to Doc. No. Payment Number will be generated automatically Vendor Select the vendor code from the list Select Cash/Bank account Invoice Select the invoice for which you are making payment
While making payments to vendors through the Payment Journal, apply the entry with the relevant invoice. The entries are reflected in the Service Tax Entry table, so that service tax credit gets recorded to the extent of the payment made.
Service Tax Entry History Payment

Navigation: Purchases History Navigate
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Select the G/L Entry line and then click Show to view the G/L Entry.
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The above payment entry has made the following GL entry in the program: Description Vendor Account Service Tax Receivable Account Service Tax Receivable Interim Account Bank/Cash Account Dr/Cr Dr Dr Cr Cr Amount 110300.00 10300.00 10300.00 110300.00
In the above table, you will find that amount is transferred from the Service Tax Receivable Interim account to the Service Tax Receivable Account and is available for utilize against the service tax liability.
Sales Transactions
Direct Invoices using Sales Invoices

Navigation: Sales & Marketing Order Processing Invoices
Enter the following details in the Sales Invoice header: Sell-to Customer No. Location Code Structure Choose a customer from the list. Keep this field blank Select structure denoting Service Tax
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Enter the following details in the Sales Invoice line: Type No. Quantity Unit Price Excl. Vat Service Tax Registration No. G/L account Select output service G/L Account which is mapped with Service Tax Group 1 200000 The program will capture the service tax registration number from the Company Information as you have kept the Location field blank. If Location is specified, the program will capture the service tax registration number from the Location Card.
In the above window, since the GL account 8410-Advertising is already mapped to a Service Tax Group; the service tax will be calculated. However the service tax computation will happen only after attaching a structure with service tax component. Click Functions Calculate Structure Values To view the computed details press F9 (Statistics).
Post the Sales Invoice.
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Service Tax Entry History - Sales Invoice

Service Tax Entry table stores all the sales invoices including service tax. It stores the posted invoice number and the posting date along with the service tax details like: service tax group, service tax registration number, service tax amount, and so on. If you click the Navigate button in the posted invoice entries, you will find that the program has also made an entry in the Service Tax entry table.
Click Navigate to view the details of entries that have been posted.
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Select the Service Tax Entry line and then click Show to view the Service Tax entry.
Select the G/L Entry line and then click Show to view the GL entry.
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The above window displays the following accounts: Description Customer Account Service Tax Payable Interim Account Advertising Dr/Cr Dr Cr Cr Amount 220600.00 20600.00 200000.00
Calculation of service tax as per the structure below: Service Tax %: 10 Service Tax Base: 200,000 Service Tax Amount 20,000 Service Tax eCess %: 2 Service Tax eCess Amount: 400 Service Tax SHE eCess %: 1 Service Tax SHE eCess Amount: 200 Amount To Customer: 220,600
Payments using Receipt Journal

Navigation: Financial Management Receivables Receipt Journal
Note: While recording incoming payments using the Receipt Journal/General Journal, please ensure that the Document Type is selected as Payment, otherwise the service tax liability will not be updated to the extent of payment received.
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Enter the following information: Document Type Document No. Account Type Account No. Bal. Account No. Applies-to Doc. Type Applies-to Doc. No. Payment Document number will be generated automatically Customer Choose the customer code from the list Choose Cash /Bank account Invoice Choose the invoice, for which you are receiving payment
Note: While receiving payments from customers through the Receipt Journal/General Journal, apply the entry with the relevant invoice. The entries are reflected in the Service Tax Entry table, so that service tax liability gets recorded only to the extent of the payment received.
Service Tax Entry History - Receipt

If you see the posted document of the original invoice, you will find that the service tax entry is updated and the amount of payment received is reflected in the table.
Navigation: Sales & Marketing History Navigate
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Select the G/L Entry line and then click Show to view the GL entry.
The above payment entry has made the following GL entry in the program
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Description Cash/Bank Account Service Tax Payable Interim Account Service Tax Payable Account Customer Account
Dr/Cr Dr Dr Cr Cr
Amount 220600.00 20600.00 20600.00 220600.00
In the above table, you will find that amount is transferred from the Service Tax Payable Interim account to the Service Tax Payable account and standing as the service tax liability.
Excise as Service Tax Credit
Implication for the Service Provider

If the service provider is purchasing any excisable goods and using the material to provide the service, then the service provider can utilize the excise credit against the paying off the service tax. For example: CRONUS India Limited an advertisement agency has signed up an agreement to provide advertisement service to its client. The company bought a plotter from the vendor Delhi Postmaster for printing signboard. The excise duty paid by the company could be utilize as Excise as Service Tax Credit while paying off service tax. The purchase order entry will be made as follows:
Purchase Order
Navigation: Purchases Order Processing Purchase Order
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Enter the below mentioned information and post the Purchase order. Buy-from Vendor No. Location Code Structure Choose a vendor from the list. Keep this field blank Select structure denoting EXCISE
Enter the following details on the Purchase Invoice line: Type No. Item Select the capital item you have defined in the program (In the item card will mark the Capital Item field to specify an item as capital goods). 1 260000
Quantity Direct Unit Cost Excl. VAT
Calculate Structure Values from Functions and press F9 (Statistics) to see the Purchase Invoice Statistics:
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Press F11 to post the Order as Receive and Invoice
Excise Entry History - Purchase Invoice Navigation: Purchases History Posted Invoice
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Note: The computation of excise duty will be based on the excise setup. In case of Capital Item, 50 percent of excise duty paid on purchase could be utilized as CENVAT Credit in the current year and rest will be carry forwarded to the next year. You can also book excise credit by creating purchase invoice while buying input or capital goods to use for the output services. Click Navigate to see the entry details:
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Click Show to view the Excise entry:
As the type of bought item is Capital, the program will make two entries, which could assure the 50 percent credit for the current year and rest for the next year. To see the G/L effect, select the G/L Entry line and click Show in the Navigate window:
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The program has made the following G/L Entry: Description Purch., Raw Materials - Dom. Cenvat Cr. Receivable Account Cenvat Cr. Deffered Account Vendors, Domestic Dr/Cr Dr Dr Dr Cr Amount 200400.00 11200.00 11200.00 222800.00
The Structure has made the following calculation for the Excise entry: Excise Base Amount: BED % : Capital Item: AED(GSI) %: SED % : SAED %: eCess %: SHE Cess %: AED(TTA) %: ADE %: BED Amount: AED(GSI) Amount: SED Amount: SAED Amount: eCess Amount: SHE Cess Amount: AED (TTA) Amount: ADE Amount: Excise Amount: Amount Including Excise: Amount To Vendor: 200,000 10 Yes 2 2 2 2 2 2 2 20,000 400 400 400 400 400 400 400 22,800 222,800 222,800
Capital goods and any inputs purchased by a service provider are used for providing output service. The excise duty thus paid on purchasing the capital goods or inputs by
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the service provider, can be availed as a credit and can be offset against the service tax payable.
Periodical Activities for managing Excise as Service Tax Credit and Service Tax Payment
The user can take decision on the amount of Excise Credit to utilize as Excise as Service Tax Credit. This periodical activity will help the user to select the records of excise entries, which are to be carried out to take the credit against service tax liability based on Register Type as: RG and Location as: E.C.C. No.
Excise as Service Tax Credit:

Navigation: Financial Management General Ledger Periodic Activities Service Tax Excise as Service Tax Credit
Fill in the fields according to these guidelines: Field RG Register Type Description Choose the RG register type from the drop down box. Available options are: RG 23A and RG 23C. Choose the location from where you provide service and credit to be forwarded as Excise as Service Tax credit.
Location E.C.C. No
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Click OK to see all records of the respective RG registers.
Select the entry or entries and provide a check mark for which you want to carry out the availed credit. Click OK (Note: Beside the selection of RG 23A Part II or RG 23C Part II based on your decision to carry out the credit, you can also filter the records based on the Excise Business Posting Group, Excise Product Posting Group, Posting Date, and so on as per your requirement.) You use Function Select All, to select all the records or may use UnCheck All to remove check mark from the records. Remember that if you utilized the availed excise credit against Payment of Service Tax as Excise as Service Tax Credit, those document which are fully applied with the amount you utilized will be removed from this form by the program. Only the partial document if any will be lying in this form and will display the availed credit in form of Remaining BED, Remaining SED, Remaining eCess, Remaining SHE eCess and so on. This could be use for future setoff of Service Tax Payment. The cumulative excise credit amount (RG23A and RG23C) of selected records are now available in the Service Tax Payment form.
Payment of Service Tax and Excise as Service Tax Credit:

In this section, you can understand how does the program help you to pay Service Tax and how can you utilize the Excise as Service Tax.
Navigation: Financial Management General Ledger Periodic Activities Service Tax Payment
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Payment of Service Tax can be done through the Periodic Activities in General Ledger Module. In the Service Tax Payment window, you need to filter the details: Service Tax Regn No.: Choose the service tax registration number for the billing location, for which payment is to be made. Date Filter: Choose the date for which payment is to be made. You can enter from date and to date according to the business need. Document No: Enter the document number of the Service Tax Payment document. Posting Date: Specify the date on which the payment should be recorded in the program. Location E.C.C. No.: Set a filter on the location ECC number to allow the program to calculate the CENVAT credit available as per location.
You can see the sales related service tax entries for the specified filters in the above window. Click Apply Entries. Now you will see the screen below:
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Fill in the fields according to these guidelines: Field Credit Available RG23A Description Define the input credit available on the RG23A register. Define the input credit available on the RG23C register. Define the input credit eCess available on the RG23A register. Define the input credit SHE eCess available on the RG23A register. Define the input credit eCess available on the RG23C register Define the input credit SHE eCess available on the RG23C register Define the input credit on the value of services availed from vendors as well as the sum of input credit according to RG23A and RG23C on the Excise as Service Tax Credit line. Define the input credit (eCess) on the value of services availed from vendors as well as the sum of input credit (eCess) according to RG23A and RG23C on the Excise as Service Tax Credit line. Define the service tax liability against each of the service tax groups. Define the service tax eCess liability against each of the service tax groups. Enter the amount of credit, which will be taken.
Credit Available RG23C
Credit Available RG23A eCess
Credit Available RG23A SHE eCess
Credit Available RG23C eCess Credit Available RG23C SHE eCess Credit Available
Credit Available eCess
Payment Liability
Payment Liability (eCess)
Credit Availed
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Payment Amount
Enter the remaining amount, which needs to be paid, after setting off with credit.
Note: Credit Available RG23 A, Credit Available RG23 A eCess, Credit Available RG23 A SHE eCess Credit Available RG23 C, Credit Available RG23 C eCess and Credit Available RG23 C SHE eCess amount are based on the selection you made in the Excise as Service Tax Credit periodical activity as explained above. To utilize Excise as Service Tax Credit, select the specific row and then click Line Excise Cenvat Claim.
The program will display the following details of Excise as Service Tax Credit according to the Excise Component.
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Enter the component wise amount according to the credit available to be utilized against service tax liability. You can not enter the amount which is greater than Credit Availed or Service Tax Payment Liability. The program will show an error message if you do so. Press escape to come out of Excise as Service Tax Credit form.
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In the above mentioned Service Tax Payment form other details are also need to be entered as per specific service tax payment details. Enter the bank account and the cheque number, where the payment is to be made. Note: In case of a delayed payment, you need to pay interest, which you have to manually calculate and enter the amount in the payment screen. Fill in the fields in the Service Tax Payment form according to these guidelines: Field Interest Amount Description Enter the amount of interest, which has to be paid for delayed payment. Choose the relevant GL account for posting the interest entry. Enter any other amount, which has to be paid for penalty. Select the relevant GL account for posting the entry of other amount.
Int. Account No.
Other Amount
Other Account No.
Post the Service Tax Payment entry. The program will generate G/L entries. The G/L effects of this Service Tax Payment are explained below.
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Click Show to view GL effects.
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The above window displays the following detail GL Entry: Description Service Tax Payable I Account Service Tax Receivable I Account Cenvat Cr. Receivable Account Dr/Cr Dr Cr Cr Amount 23,690.00 3,114.00 20,576.00
Service Tax as Excise

Implication for the Manufacturers
Manufacturers are entitled to utilize the credit availed of central excise duties paid on the inputs and capital goods purchased. Manufacturers are also entitled to utilize the credit availed of the service tax paid on input services consumed in manufacturing of finished goods. For example: A user is a manufacturer of excisable item and has got signed an agreement for developing the quality standard of the goods, the user manufacture with its vendor Delhi Postmaster. The service tax amount paid by the company could be utilized against the Service Tax Payment. The entry will help you to understand how the program is storing the Availed Credit on input service.
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Purchase Order
Navigation: Purchases Order Processing Purchase Order
In case of a manufacturer who is receiving services from a vendor, the following points are needed to be considered: a) Select the structure, which is denoting Service Tax info from the Service Tax setup. b) Type must be selected as G/L. The G/L account you are selecting should have the mapping with service tax group. c) The purchase document needs to specify the Services Tax Registration No. field on the lines as par the location where you are receiving the service. d) The outstanding amount to the vendor must be paid and applied to the respective purchase order/invoice to avail the Service Tax Credit. To see the service tax calculation press F9 (Statistic), and then post the purchase order.
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Periodical Activities for managing Service Tax as Excise Credit and Excise Duty Payment
Service Tax as Excise Credit:

Same as Excise as Service Tax Credit, you can decide on the Service Tax as Excise Credit amount. In this periodical activity you can select the records or groups of input service records, which are to be utilized against the excise liability.
Navigation: Financial Management General Ledger Periodic Activities Service Tax Service Tax as Excise Credit
Fill in the fields according to these guidelines: Field Service Tax Registration No. Location E.C.C. No Description Choose the service tax registration number. Choose the location from where you provide service and credit to be forwarded as Service Tax as Excise credit.
Choose the Service Tax Registration No. and Location ECC No. from the list Click OK to see all records of Input Services as par Location. If location is not applicable then Company ECC No. will be the default Location ECC No.
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Choose the entry and put a check mark, for which you want to avail credit. You use Function Select All, to select all the records or may use UnCheck All to remove check mark from the records. Remember that if you utilized the availed service tax credit against Payment of Excise Duty as Service Tax as Excise Credit, those documents which are fully applied with the amount you utilized will be removed from this form by the program. Only the partial document if any will be lying in this form and will display the availed credit in form of Remaining Credit, Remaining Credit (eCess) and Remaining Credit (SHE eCess). This could be use for future setoff of Excise Duty Payment. Click OK. Details of the entry you have selected are as below: Type: Service Tax Registration No.: Posting Date: Base Amount: Service Tax Amount: Amount: Service Tax SHE Cess Amount Service Tax eCess Amount GL Account: Service Tax Group Code: Service Tax as Excise Closed: Purchase BJX118910100578 01/04/06 1,800,000 180,000 1,985,400 1,800 3,600 2998 ADV Yes No
The above entry shows that INR 180,000 and will be available at the time of paying excise duty and the documents Closed status is No. Note: You can also apply filters on the available records if you are willing to. For example if you want to utilize credit of Advertisement Group, then filter the records on Service Tax Group Code. According to this selection, the sum of Service Tax input credit will be available while you will be using Pay Excise functionality.
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Now according to the selection the cumulative amount of input service tax will be appeared in the Excise CENVAT Claim form as Service Tax as Excise.
Payment of Excise Duty and Service Tax as Excise Credit:

In this section, you will understand how the program is helping you to pay excise and how you could make the Service Tax as Excise Credit utilized properly.
Fill up the following on the General Journal line: Journal Batch Name: Posting Date: Document Type: Document No.: E.C.C. No.: Service Tax Registration No.: DEFAULT Enter the date of Excise Payment Keep this field blank The program will automatically assign a number BXBVS7543890 (Select the Location ECC number for which you have to pay Excise) BXBVS7543890 (Select the Service Tax Registration No., if you want to avail input service credit while paying Excise Duty as per Service Tax as Excise Credit.)
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Account Type: Account No.: Description: Bal. Account Type: Bal. Account No.:
G/L Account 2994 (Excise Payable Account) Excise Payable Account G/L Account Keep this field blank
Now click Function Payment Excise The program will open the Pay Excise form. On clicking Apply Entries, the program will open the Excise Cenvat Claim form.
Service Tax as Excise Credit amount INR 180,000, eCess on Service Tax as Excise Credit amount INR 3,600 and SHE Cess on Service Tax as Excise Credit amount INR 1,800 are same as per your check mark in the Service Tax as Excise field of the Periodical Activity area of the Service Tax as Excise. The above form is displaying the credit according to the excise component that you availed from your purchase input / capital goods, and the liability that arises in your books by selling of excisable goods.
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(Note: The above figures are for example out of some entries made in sales, purchase, and journal. The Service Tax as Excise Credit amount is from the sum of the records based on your selection you have made in the Service Tax as Excise periodical activity.) Now suppose you want to utilize the whole amount of Service Tax as Excise Credit and eCess on Service Tax as Excise Credit amount. Fill up the form as per example given below:
(Note: The above figures are taken for example. You can make up the liability amount out of credit available in RG 23A, RG23C, PLA and Service Tax as Excise Credit amount if the liability is more.) Now click Apply Service Tax to allocate the Service Tax as Excise Credit amount with appropriate Service Group.
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(Note: You can allocate the amount from one Service Tax Group or even from different Service Tax Group according to the Credit Available.) Click Esc key to get back to the Excise Cenvat Claim form. Again click Esc key to get back to the General Journal line. Press CTRL+F8 to see the details. The field values will be as below: Journal Template Name: Account Type: Account No.: Posting Date: Document Type: Document No.: Description: Bal. Account No. Amount: Excise Bus. Posting Group: Excise Prod. Posting Group: ST SED Amount: ST BED Amount: ST AED(GSI) Amount: ST SAED Amount: ST eCESS Amount: ST SHE eCESS Amount: ADC VAT Amount: GENERAL G/L Account 2994 01/04/06 Blank G00339 Excise Payable Account Blank 4,228 GEN 84.15 400 2,000 400 400 64 32 932
(Note: If the Service Tax Credit you are utilizing against Excise Liability, the Service Tax Credit Amount must be applied to Service Tax Group. The program will restrict and generate an error message. The same message will be appeared in the Test Report.) You can see the posted information from the history.
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Select the G/L Entry line and click Show to view the details G/L entry.
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The above window shows the following effect in G/L accounts Description Excise Payable Account CENVAT Credit. Receivable Account Service Tax Receivable Account Dr/Cr Dr Cr Cr Amount 4,228.00 932.00 3,296.00
Update Challan Details

Navigation: Financial Management General Ledger Periodic Activities Service Tax Update Challan Details
The service tax amount is required to be paid in the TR-6 Challan form in the specified branches of designated banks. This function will help to keep track of all the Service tax payments made to the government with relevant challan details. The challan number, challan date, and bank name are updated using this functionality, which in turn will be updated for each transaction. This will populate another form on which relevant challan details can be entered for a particular payment document. The challan details now get updated on each of the transaction lines.
Reports
Input Service Details
Navigation:
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Financial Management General Ledger Report Service Tax Reporting Input Service Details
Enter the following information in the Report Request form: Field Date Period From Date Period From Service Tax Group Service Tax Registration No Place Date Description Choose starting month and year Choose ending month and year Choose service group Choose the service tax registration number Define the place of origin Define the submission date
The program will generate the report as below:
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This return is to be filed along with ST-3 form, in case service tax credit on input services is availed. In this report Credit Utilised field shows the amount you have utilized as Service Tax as Excise Credit while Paying Excise Duty or as Credit Utlised against the payment of Service Tax. Note: The Service Tax reports currently do not address the excise availability as service tax credit, as the modified format has not been released by any government notification at the time of release of this functionality.
Appendix
Accounting of Service Tax
Example 1 ABC India Limited is a service provider, has got agreement with PVR Corporation for the advertisement of its services. The PVR has sent an invoice of INR 110200 on completion of advertisement campaign. The breakup of the invoice was INR 100000 for the service, INR 10000 for the Service Tax and INR 200 for eCess on Service Tax. ABC, as per agreement paid the amount within 30 days.
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There will be following accounting effect in the books of ABC.
Entry Type Purchase
Description Advertisement Account Service Tax Receivable Interim Account ABC India Ltd. Account ABC India Ltd. Account Service Tax Receivable Account Service Tax Receivable Interim Account Bank/Cash Account
Dr/Cr Dr Dr Cr Dr Dr Cr Cr
Amount 100000.00 10200.00 110200.00 110200.00 10200.00 10200.00 110200.00
Payment
Example 2 ABC India Limited as a service provider of sewage pollution control consultancy got a project from its client Washing Detergents LTD. On completion of the project, ABC sends the invoice of INR 220400 with the breakup of INR 200000 for the service, INR 20000 for the Service Tax and INR 400 for the eCess on Service Tax. The payment has been realized in due course. Following accounting effect will be there in the books of ABC.
Entry Type Sales
Description The Washing Detergents LTD. Service Tax Payable Interim Account Consultancy Fee Cash/Bank Account Service Tax Payable Interim Account Service Tax Payable Account The Washing Detergents LTD.
Dr/Cr Dr Cr Cr Dr Dr Cr Cr
Amount 220400.00 20400.00 200000.00 220400.00 20400.00 20400.00 220400.00
Receipt
Example 3 ABC India Limited gained Service Tax Credit of INR 10200 against the input service and reached to a liability of INR 20400. ABC can utilize the available credit to pay the Service Tax liability. The following entries will be made. Entry Type Service Tax Payment Description Service Tax Payable Account Service Tax Receivable Account Cash/Bank Dr/Cr Dr Cr Cr Amount 20400.00 10200.00 10200.00
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Example 4 ABC India Limited as a service provider of sewage pollution control buys a machinery for pollution check, which is excisable capital goods. The machinery is using by them to provide service and thus ABC can avail the credit they have gained on purchasing the machine while paying service tax. The purchase invoice of capital goods has got INR 8800 of Excise Duty. ABC India Limited gained Service Tax Credit of INR 10200 against the input service and reached to a liability of INR 20400. So ABC could utilize the available credit of Excise as Service Tax Credit and Service Tax Input Credit to pay the Service Tax liability.
(Excise as Service Tax Credit) Entry Type Service Tax Payment Description Service Tax Payable Account Cenvat Cr. Receivable Account Service Tax Receivable Account Cash/Bank Example 5 On the other hand XYZ Limited, a manufacturer of excisable goods requires outsourcing some of the process to produce the finished goods. The jobber prepares the invoice with service tax and sends it across to XYZ Limited. The invoice has got Service Tax Component of INR 15500. This amount of service credit can be utilized while paying excise. Say XYZ Limited has got an Excise Liability of INR 25000 and excise credit available is INR 15000. Now XYZ can utilize the Service Tax Credit against excise liability. Dr/Cr Dr Cr Cr Cr Amount 20400.00 8800.00 10200.00 1400.00
(Service Tax as Excise Credit) Entry Type Pay Excise Description Excise Payable Account Cenvat Cr. Receivable Account Service Tax Receivable Account Dr/Cr Amount Dr 25000.00 Cr 15000.00 Cr 10000.00
(Thus Service Tax as Excise Credit availed is INR 10000 and utilized against payment of excise the rest amount as (15500 10000) INR 5500 will be in the remaining amount)
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Microsoft Business Solutions Navision 4.0- Multi Location Taxes (II)
Table of Contents
Overview of Functionality......................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................3 Reports..............................................................................................................3 Calculation of taxes on General Ledger Account & Charge (Item) .......................3 Calculation of VAT on General Ledger Account ................................................5 Viewing the Posted Transaction ....................................................................8 Calculation of Excise on General Ledger Account ..........................................11 Calculation of Excise on General Ledger Account through Purchase Order (In case of Supplementary Invoice) .............................................................11 Viewing the Posted Transaction ..................................................................13 Calculation of excise on General Ledger account through Purchase Credit Memo (In case of Supplementary Credit Memo) .........................................20 Viewing the Posted Transaction ..................................................................22 Calculation of Excise on General Ledger Account through Sales Order (In case of Supplementary Invoice)...................................................................28 Viewing the Posted Transaction ..................................................................30 Calculation of Excise on General Ledger Account through Sales Credit Memo (In case of Supplementary Credit Memo) .........................................37 Viewing the Posted Transaction ..................................................................39 Calculation of Excise on Charge (Item) ...........................................................45 Calculation of excise on Charge (Item) through Purchase Order (In case of Supplementary Invoice) ...............................................................................45 Viewing the Posted Transaction ..................................................................49 Calculation of Excise on Charge (Item) through Purchase Credit Memo (In case of Supplementary Credit Memo) .........................................................57 Viewing the Posted Transaction ..................................................................62 Calculation of Excise on Charge (Item) through Sales Order (In case of Supplementary Invoice) ...............................................................................69 Viewing the Posted Transaction ..................................................................74 Calculation of Excise on Charge (Item) through Sales Credit Memo (In case of Supplementary Credit Memo) ..................................................................80 Viewing the Posted Transaction ..................................................................84 Calculation of Service Tax...............................................................................90 Calculation of Service Tax in case of Direct Payment made for Services Account........................................................................................................90 Viewing the Posted Transaction ..................................................................92 Calculation of Service Tax in case of Direct Payment Received against Services Account. ........................................................................................96 Viewing the Posted Transaction ..................................................................97 Calculation of Service Tax in case of other G/L Account. ..........................102 Viewing the Posted Transaction ................................................................103 Appendix...........................................................................................................108
Multilocation taxes functionality facilitate the entry of opening balances and adjustments in the statutory records which enable in maintaining, generation of appropriate & accurate statutory records and reports using the existing Navision Localization feature. This feature includes the computation & recording of taxes on General Ledger Account & Charge (Item).
Detailed Setup
Detailed setups of Excise, Service Tax, and Sales Tax are required for entering opening balances and doing adjustments in the statuary records. The required setups are also used for calculating taxes on G/L Account and Charge (Item).
Following are the comprehensive functionalities covered under Multilocation Taxes. Opening Balances in RG 23 A/C Part I Opening balances in RG 23 A/C Part II Opening Balances in Daily Stock Account (DSA) Opening Balances in Personal Ledger Account (PLA) Opening Balances of Service Tax and eCess Adjustments in excise reflecting to RG 23 A/C Part I & II and DSA Adjustments in Service Tax related transactions Adjustment in VAT Computation and recoding of Excise and VAT on General Ledger account Computation and recording of Excise on Charge (Item) Computation and recording of Service Tax on General Ledger account
Reports
All existing statutory reports of Navision generate the appropriate & accurate records.
Calculation of taxes on General Ledger Account & Charge (Item)
Setups required
G/L Account Card Item Charges
G/L Account Card Navigation: Financial Management General Ledger Chart of Account Account Card
Fill in the fields according to these guidelines: Fields Tax Group Code Description Choose the tax group code from the lookup list to calculate VAT on G/L Account. This field has already been introduced
13702(13705) _VAT Credit on Capital Goods, Setoff and Refund

Excise Prod. Posting Group Choose the excise production posting group from the lookup list to calculate Excise on G/L Account. Place a check mark in the Capital Item field to identify item as Capital Item while calculating Excise in G/L Account.
Capital Item
Item Charges Navigation: Sales & Marketing Order Processing Setup Item charges
Fill in the fields according to these guidelines: Fields Excise Prod. Posting Group Description Choose the excise production posting group from the lookup list to calculate excise on Item Charges. Place a check mark in Capital Item field to identify item as Capital Item while calculating Excise on Item Charges.
Capital Item
Note: Before calculating taxes on G/L Account and Item Charges, you need to maintain the other proper setups related to the Excise, Service Tax and VAT.
Calculation of VAT on General Ledger Account

Calculation of VAT on G/L account has already been introduced in 13702(13705)
_VAT Credit on Capital Goods, Setoff and Refund.

Please go through with the following example to calculate VAT on G/L account through the Purchase Order.
Initially you should maintain Sales Tax Setup to calculate VAT on G/L Account.
To calculate VAT, fill the fields in the Purchase Order window as follows:
On the Header:
Buy from Vendor No: Location Code: Structure: On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: Calculate Structure Press F9 to view the tax amount. Post the Order. G/L Account 1401 Lease 1 10000 10000 10000 (Vendor State is Andhra Pradesh) Blue (Location state is Andhra Pradesh) VAT

G/L Entry
The program creates the following entry: Particulars Lease A/C Purchase Tax To, Vendor Calculation of VAT Base amount is Rs. 10000 and VAT % is 10. Tax Amount = 10000*10% = 1000 Type DR DR CR Amount(Rs) 10000 1000 11000
In the Detailed Tax Entry window, Input Credit/Output Tax Amount field has the value as 1000 and it is further taken for credit in the settlement process. Note 1: You can calculate VAT/CST on G/L Account through Purchase Order/Invoice, Purchase Credit Memo, Sales Order/Invoice, and Sales Credit Memo. Note 2: You are also requested to go through the User Manual of 13705_Vat setoff & refund which has been released earlier.
Calculation of Excise on General Ledger Account

Initially you should prepare the excise setup.
Calculation of Excise on General Ledger Account through Purchase Order (In case of Supplementary Invoice)
Fill in the fields according to these guidelines: Fields Supplementary Description Place a check mark in this field so that the program can identify it as a supplementary invoice. If this field is true then in the invoice print after posting the program will show the Supplementary invoice. Choose the source document type from drop down box. The available options are: Posted Invoice and Posted Credit Memo. Choose the source number from the lookup list for the selected source type.
Source Document Type
source Document No.
To calculate excise, fill the fields in the Purchase Order window as follows: On the Header: Buy from Vendor No: Location Code: Structure: 10000 Blue Excise
On the Line:
Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: Supplementary: Source Document Type: Source Document No.: Calculate Structure Press F9 to view the tax amount. Post the Order. G/L Account 7110 Purchase, Retail Dom. 1 10000 10000 True Posted Invoice 108054.

G/L Entry
The program creates the following entry: Particulars Purchase A/C CENVAT Cr. Receivable A/C To, Vendor Calculation of Excise Base amount is Rs. 10000 and BED % is 10. Excise Amount = 10000*10% = 1000 Type DR DR CR Amount(Rs) 10000 1000 11000
Excise Entry
The program will create excise entry in case of Supplementary Invoice.
RG 23 A Part II Entry Through Posted Receipts
The program will also create RG 23 A Part II entry with BED Credit amount. You can also print/preview the posted supplementary invoice through posted purchase invoice by clicking Print.
The program displays Supplementary Invoice on the right hand side of the invoice and shows the Ref: Posted Invoice with invoice number in the description column. Note 1: If the Supplementary field in the order line is checked then only report will show Supplementary Invoice. For each line there is an option to select the original invoice number for which you are generating supplementary invoice. You can also calculate excise without placing a check mark in the Supplementary field. Note 2: If the source document type is posted credit memo it means initially you have posted a credit memo to your vendor and now you want to adjust some amount with CENVAT against posted credit memo. In this case the program will show ref: posted credit memo with number in the posted invoice print/preview. Note 3: If the user wants to calculate excise on G/L account (capital Item) Deferred account, then he has to place a check mark in the Capital Item field in G/L Account card. In this case the program will automatically segregate the excise amount and the entry will be:
Particulars Purchase A/C CENVAT Cr. Receivable A/C CENVAT Cr. Deferred A/C To, Vendor
Type DR DR DR CR
Amount(Rs) 10000 500 500 11000
And the posted transaction will flow in RG 23 C Part II in BED Credit field. You can also calculate excise through the Purchase Invoice. Note: User can also calculate Secondary and higher education CESS (SHE CESS) by defining the percentage in excise posting setup.
Calculation of excise on General Ledger account through Purchase Credit Memo (In case of Supplementary Credit Memo)
Navigation: Purchases Order Processing Credit memos
Fill in the fields according to these guidelines: Fields Supplementary Description Place a check mark in this field so that the program can identify it as Supplementary Credit Memo. If this field is checked then in the credit memo print after posting program will show the Supplementary credit memo. Choose the source document type from
Fields
Description the drop down box. The available options are: Posted Invoice and Posted Credit Memo. It means against which posted document you are generating supplementary credit memo. Choose the source document number from the lookup list for the selected source type.
Source Document No.
To calculate excise, enter the following in the Purchase Credit Memo window. On the Header: Buy from Vendor No: Location Code: Structure: On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: Supplementary: Source Document Type: Source Document No.: Calculate Structure Press F9 to view the tax amount. Post the Credit memo. G/L Account 7110 Purchase, Retail Dom. 1 5000 5000 True Posted Credit Memo 109010. 10000 Blue Excise

Navigation: Purchases History Posted Credit Memo
G/L Entry
The program creates the following entry: Particulars Purchase A/C CENVAT Cr. Receivable A/C To, Vendor Calculation of Excise Base amount is Rs. 5000 and BED % is 10. Excise Amount = 5000*10% = 500 Type CR CR DR Amount(Rs) 5000 500 5500
Excise Entry
The program creates Excise entry in case of Supplementary Credit Memo.
RG 23 A Part II Entry Through posted return shipments
The program will also create RG 23 A Part II entry with BED Debit amount. You can also print/preview the posted supplementary credit memo through posted credit memo by clicking Print.
The program displays Supplementary Credit Memo on the right hand side of the Credit Memo and will show the Ref: Posted Credit memo with credit memo number in the Description column. Note 1: If the Supplementary field in the credit memo line is checked then only the report will show the Supplementary Credit memo. For each line there is an option to select the original credit memo number for which you are generating supplementary credit memo. You can also calculate excise without placing a check mark in the Supplementary field. Note 2: If the source document type is posted invoice it means initially you have posted an invoice/order to your vendor and now you want to adjust some amount with CENVAT against posted invoice In this case the program will show ref: posted invoice with number in the posted credit memo print/preview. Note 3: If the user wants to calculate excise on G/L account (capital Item) Deferred account, then he has to place a check mark in the Capital Item field in G/L Account card. In this case the program will automatically segregate the excise amount and the entry will be:
Type CR CR CR DR
Amount(Rs) 5000 250 250 5500
And the posted transaction will flow in the BED Debit field of RG 23 C Part II. Note 4: If the user does not have the Return Order granule and the user calculates excise through credit memo then excise amount will not reflect in RG 23 A/C Part II. The user can also calculate excise through Return Order. Note: User can also calculate Secondary and higher education CESS (SHE CESS) by defining the percentage in excise posting setup.
Calculation of Excise on General Ledger Account through Sales Order (In case of Supplementary Invoice)
Navigation: Sales & Marketing Order Processing Orders
Fill in the fields according to these guidelines: Fields Supplementary Description Place a check mark in this field so that the program can identify it as supplementary invoice. If this field is checked, then the
Fields
Description program will show the Supplementary Invoice in the invoice print after posting. Choose the Source document type from drop down box. Available options are: Posted Invoice and Posted Credit Memo. It means against which posted document you are generating supplementary invoice. Select the source number from lookup list for the selected source type.
Source Document No.
Enter the following in the Sales Order to calculate excise. On the Header: Buy from Vendor No: Location Code: Structure: On the Line Type: No.: Description: Quantity: Unit Price: Line Amount: Supplementary: Source Document Type: Source Document No.: Calculate Structure Press F9 to view the tax amount. Post the Order. G/L Account 6110 Sales, Retail Dom. 1 10000 10000 True Posted Invoice 103028. 10000 Blue Excise

Navigation: Sales & marketing History Posted Invoice
G/L Entry
The program creates the following entry: Particulars Sales A/C Excise Payable A/C Customer A/C Type CR CR DR Amount(Rs) 10000 1000 11000
Calculation of Excise Base amount is Rs. 10000 and BED % is 10. Excise Amount = 10000*10% = 1000
Excise Entry
The program will create Excise Entry in case of Supplementary Invoice. You can also print/preview the posted supplementary invoice through posted sales invoice by clicking Print.
The program displays Supplementary Invoice on the right hand side of the invoice and Ref: Posted Invoice with invoice number in the description column. Note 1: If the Supplementary field in the order line is checked then only the report will show Supplementary Invoice. Also for each line there is an option to choose the original invoice number for which you are generating supplementary invoice. You can also calculate excise without placing a check mark in Supplementary field. Note 2: If the source document type is posted credit memo it means initially you have posted a credit memo to your customer and now you want to adjust some amount with CENVAT against posted credit memo. In this case the program will show ref: posted credit memo with number in the posted invoice print/preview. You can also calculate excise through Sales Invoice.
Note: User can also calculate Secondary and higher education CESS (SHE CESS) by defining the percentage in excise posting setup.
Calculation of Excise on General Ledger Account through Sales Credit Memo (In case of Supplementary Credit Memo)
Navigation: Sales & Marketing Order Processing Credit memos
Fill in the fields according to these guidelines: Fields Supplementary Description Place a check mark in this field so that the program can identify it as supplementary credit memo. If this field is checked, then the program will show the Supplementary Credit Memo in the credit memo print after posting. Select the source document type from drop down box. The available options are: Posted Invoice and Posted Credit Memo. It means against which posted document you are generating supplementary credit memo. Choose the source number from lookup list for the selected source type.
Source Document No.
Enter the following in the Credit Memo to calculate excise. On the Header: Buy from Vendor No: Location Code: Structure: On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: Supplementary: Source Document Type: Source Document No.: Calculate Structure Press F9 to view the tax amount. Post the Credit Memo. 10000 Blue Excise
G/L Account 6110 Sales, Retail Dom. 1 10000 10000 True Posted Credit Memo 104007.

Navigation: Sales & Marketing History Posted Credit Memo
G/L Entry

Particulars Sales A/C Excise Payable A/C Customer A/C Type DR DR CR Amount(Rs) 10000 1000 11000
Excise Entry
The program creates excise entry in case of Supplementary Credit Memo.
The program will also create RG 23 A Part II entry with BED credit amount. You can also print/preview the posted supplementary credit memo through posted credit memo by clicking Print.
The program displays Supplementary Credit Memo on the right hand side of the Credit Memo and show the Ref: Posted Credit memo with credit memo number in the description column. Note 1: If the Supplementary field in the credit memo line is checked then only the report will show the Supplementary Credit memo. For each line there is an option to select the original credit memo number for which you are generating supplementary credit memo. You can also calculate excise without placing a check mark in the Supplementary field. Note 2: If the source document type is posted invoice it means initially you have posted an invoice/order to your vendor and now you want to adjust some amount with CENVAT against posted invoice In this case the program will show ref: posted invoice with number in the posted credit memo print/preview. Note 3: If the user wants to calculate excise on G/L account (capital Item) Deferred account, then he/she has to place a check mark in the Capital Item field in G/L Account card. And the posted transaction will flow in BED Credit field of RG 23 C Part II.
Note 4: If the user does not have the Return Order granule and the user calculates excise through credit memo then excise amount will not reflect in RG 23 A/C Part II. The user can also calculate excise through the Return Order. Note: User can also calculate Secondary and higher education CESS (SHE CESS) by defining the percentage in excise posting setup.
Calculation of Excise on Charge (Item)

Initially you should prepare the excise setup.
Calculation of excise on Charge (Item) through Purchase Order (In case of Supplementary Invoice)
Fill in the fields according to these guidelines: Fields Supplementary Description Place a check mark in this field so that the program can identify it as supplementary invoice. If this field is checked then the program will show the Supplementary Invoice in the invoice print after posting.
Fields Source Document Type
Description Select the source document type from the drop down box. The available options are: Posted Invoice and Posted Credit Memo. It means against which posted document you are generating supplementary invoice. Select the source number from lookup list for the selected source type.
Source Document No.
Enter the following in the Purchase Order to calculate excise. On the Header: Buy from Vendor No: Location Code: Structure: On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: Supplementary: Source Document Type: Source Document No.: Calculate Structure Press F9 to view the tax amount. After calculating excise, assign the Item Charge. Charge (Item) PRICEDIFF Price difference 1 10000 10000 True Posted Invoice 108065 10000 Blue Excise
Click Line menu button and select Item Charge Assignment menu item to assign the item charge with posted receipt. After clicking Item charge Assignment a new window opens
Click Get Receipt Lines menu item in the Functions menu button to get receipt lines in the Item charge assignment (purch) window.
After clicking Get Receipt Lines, Purch. Receipt lines window will open. Select the line for which you want to calculate excise on charge (item). Click OK.
After clicking OK in the Purchase Receipt Lines window, the selected receipt line will be displayed in the Item Charge Assignment window. You can see that Qty. to Assign field and Amount to Assign field are blank.
Click Suggest Item Charge Assignment with Amount menu item in the Functions menu button to get the quantity and amount.
After suggesting item charge assignment with amount, you can see that the Qty. to Assign and Amount to Assign fields have got values. Close the form. Post the Order.

G/L Entry

Particulars Purchase A/C CENVAT Cr. Receivable A/C To, Vendor Type DR DR CR Amount(Rs) 10000 1000 11000
Excise Entry
The program creates excise entry in case of Supplementary Invoice.
RG 23 A Part II Entry Through posted receipts
The program will also create RG 23 A Part II entry with BED Credit Amount. You can also print/preview the posted supplementary invoice through posted invoice by clicking Print.
The program displays Supplementary Invoice on the right hand side of the invoice and shows the Ref: Posted Invoice with invoice number in the description column. Note 1: If the Supplementary field in the order line is checked then only the report will show Supplementary Invoice. For each line there is an option to select the original invoice no. for which you are generating supplementary invoice. You can also calculate excise without placing a check mark in the Supplementary field. Note 2: If the source document type is posted credit memo it means initially you have posted a credit memo to your vendor and now you want to adjust some amount with CENVAT against posted credit memo. In this case the program will show ref: posted credit memo with number in the posted invoice print/preview. Note 3: If the user wants to calculate excise on Charge (Item) (capital Item) Deferred account, then he has to place a check mark in the Capital Item field of the Item Charges form. In this case the program will automatically segregate the excise amount and the entry will be:
Type DR DR DR CR
Amount(Rs) 10000 500 500 11000
And the posted transaction will flow in the BED Credit field of RG 23 C Part II. Note 4: By getting receipt lines, cost amount in the item ledger entry of the original invoice will be updated. The user can also calculate excise through Purchase Invoice. Note: User can also calculate Secondary and higher education CESS (SHE CESS) by defining the percentage in excise posting setup.
Calculation of Excise on Charge (Item) through Purchase Credit Memo (In case of Supplementary Credit Memo)
Navigation: Purchases Order Processing Credit Memos
Fill in the fields according to these guidelines: Fields Supplementary Description Place a check mark in this field so that the program can identify it as supplementary credit memo. If this field is checked then the program will show the Supplementary
Fields
Description Credit Memo in the credit memo print after posting. Choose the source document type from drop down box. The available options are: Posted Invoice and Posted Credit Memo. It means against which posted document you are generating supplementary credit memo. Choose the source number from lookup list for the selected source type.
Source Document No.
Enter the following in the Credit Memo window to calculate excise. On the Header: Buy from Vendor No: Location Code: Structure: On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: Supplementary: Source Document Type: Source Document No.: Calculate Structure Press F9 to view the Tax Amount. After calculating excise, assign the Item Charge. Charge (Item) PRICEDIFF Price difference 1 5000 5000 True Posted Credit Memo 109012 10000 Blue Excise
Click Item Charge Assignment menu item in the Line menu button to assign the item charge with posted receipt. A new window opens.
Click Functions menu button to get return receipt lines in the Item Charge Assignment (purch) window.
After clicking Get Return Receipt Lines menu item, Return Receipt Lines window will be opened. Select the line for which you want to calculate excise on charge (item). Click OK.
After clicking OK in the Return Receipt Lines window, the selected receipt line will be displayed in the Item Charge Assignment window. You can see that Qty. to Assign field and Amount to Assign field are blank.
Click Functions menu button and select Suggest Item Charge Assignment with Amount to get the quantity and amount.
After suggesting item charge assignment with amount, you can see that the Qty. to Assign and Amount to Assign fields have got the values. Close the form. Post the Order.

G/L Entry

Particulars Purchase A/C CENVAT Cr. Receivable A/C To, Vendor Type CR CR DR Amount(Rs) 5000 500 5500
Excise Entry
The program will create excise entry in case of Supplementary Credit Memo.
The program will also create RG 23 A Part II entry with BED Debit Amount. You can also print/preview the posted supplementary credit memo through posted credit memo by clicking Print.
The program displays Supplementary Credit Memo on the right hand side of the Credit Memo and show the Ref: Posted Credit memo with credit memo number in the description column. Note 1: If the Supplementary field in the credit memo line is checked then only the report will show Supplementary Credit memo. For each line there is an option to select the original credit memo number for which you are generating supplementary credit memo. You can also calculate excise without placing a check mark in supplementary field. Note 2: If the source document type is Posted Invoice, it means initially you have posted an invoice/order to your vendor and now you want to adjust some amount with CENVAT against posted invoice In this case the program will show ref: posted invoice with number in the posted credit memo print/preview. Note 3: If the user wants to calculate excise on Charge (Item) (capital Item) Deferred account, then he has to place a check mark in the Capital Item field in the Item Charges window. In this case the program will automatically segregate the excise amount and the entry will be:
Type CR CR CR DR
Amount(Rs) 5000 250 250 5500
And the posted transaction will flow in the BED Debit field of RG 23 C Part II. Note 4: If the user does not have the Return Order granule and the user calculates excise through credit memo then excise amount will not reflect in RG 23 A/C Part II. The user can also calculate excise through Return Order. Note: User can also calculate Secondary and higher education CESS (SHE CESS) by defining the percentage in excise posting setup.
Calculation of Excise on Charge (Item) through Sales Order (In case of Supplementary Invoice)
Fill in the fields according to these guidelines: Fields Supplementary Description Place a check mark in this field so that the program can identify it as supplementary
invoice. If this field is checked then the program will show the supplementary invoice in the invoice print after posting. Source Document Type Choose the source document type from drop down box. The available options are: Posted Invoice and Posted Credit Memo. It means against which posted document you are generating supplementary invoice. Choose the source number from lookup list for the selected source type.
Source Document No.
Enter the following in the Sales Order to calculate excise. On the Header: Buy from Vendor No: Location Code: Structure: On the Line: Type: No.: Description: Quantity: Unit price: Line Amount: Supplementary: Source Document Type: Source Document No.: Calculate Structure Press F9 to view the tax amount. After calculating excise, assign the Item Charge. Charge (Item) PRICEDIFF Price difference 1 10000 10000 True Posted Invoice 103032 10000 Blue Excise
Click Item Charge Assignment menu item in the Line menu button, to assign the item charge with posted receipt. A new window opens
Click Functions menu button to get shipment lines in the Item Charge Assignment (sales) window.
After clicking Get Shipment Lines menu item, Sales Shipment Lines window will be opened. Select the line for which you want to calculate excise on charge (item). Click OK.
After clicking OK in the Sales Shipment Lines window, the selected shipment line will be displayed in the Item Charge Assignment window. You can see that Qty. to Assign and Amount to Assign fields are blank. Click Suggest Item Charge Assignment with Amount menu item in the Functions menu button to get the quantity and amount.
After suggesting item charge assignment with amount, you can see that the Qty. to Assign and Amount to Assign fields have got the values. Close the form. Post the Order.

G/L Entry

Particulars Sales A/C Excise Payable A/C Customer A/C Type CR CR DR Amount(Rs) 10000 1000 11000
Excise Entry
The program will create Excise entry in case of Supplementary Invoice. You can also print/preview the posted supplementary invoice through posted invoice by clicking Print.
The program displays Supplementary Invoice on the right hand side of the invoice and shows the Ref: Posted Invoice with invoice number in the description column. Note 1: If the Supplementary field in the order line is checked then only the report will show the Supplementary Invoice. Also for each line there is an option to select the original invoice number for which you are generating supplementary invoice. You can also calculate excise without placing a check mark in the Supplementary field. Note 2: If the source document type is Posted Credit Memo, it means initially you have posted a credit memo to your customer and now you want to adjust some amount with CENVAT against posted credit memo. In this case the program will show ref: posted credit memo with number in the posted invoice print/preview. The user can also calculate excise through the Sales Invoice. Note: User can also calculate Secondary and higher education CESS (SHE CESS) by defining the percentage in excise posting setup.
Calculation of Excise on Charge (Item) through Sales Credit Memo (In case of Supplementary Credit Memo)
Navigation: Sales & Marketing Order Processing Credit memos
Fill in the fields according to these guidelines: Fields Supplementary Description Place a check mark in this field so that the program can identify it as supplementary credit memo. If this field is checked then the program will show the Supplementary credit memo in the credit memo print after posting. Choose the source document type from the drop down box. The available options are: Posted Invoice and Posted Credit Memo. It means against which posted document you are generating supplementary credit memo. Select the source number from the lookup list for the selected source type.
Source Document No.
Enter the following in the credit memo to calculate excise. On the Header: Buy from Vendor No: Location Code: Structure: On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: Supplementary: Source Document Type: Source Document No.: Calculate Structure Press F9 to view the tax amount. After calculating excise, assign the Item Charge. Charge (Item) PRICEDIFF Price difference 1 5000 5000 True Posted Credit Memo 104008 10000 Blue Excise
Click Item Charge Assignment menu item in the Line menu button to assign the item charge with posted receipt. A new window opens
Click Functions menu button to get return receipt lines in the Item Charge Assignment (sales) window.
After clicking Get Return Receipt Lines, Return Receipt Lines window will open. You can select the line for which you want to calculate excise on charge (item). Click OK.
After clicking OK in the Return Receipt Lines window the selected return receipt line will be displayed in the Item Charge Assignment window. You can see that Qty. to Assign field and Amount to assign field are blank. Click Suggest Item Charge Assignment with amount menu item in the Functions menu button to get the quantity and amount.
After suggesting item charge assignment with amount, you can see that the Qty. to Assign and Amount to assign fields have got the values. Close the form. Post the Credit Memo.

G/L Entry
The program creates the following entry: Particulars Sales A/C Excise Payable A/C Customer A/C Type DR DR CR Amount(Rs) 5000 500 5500
Excise Entry
The program creates excise entry in case of Supplementary Credit Memo.
The program will also create RG 23 A Part II entry with BED credit Amount. You can also print/preview the posted supplementary credit memo through Posted Credit Memo by clicking Print.
The program displays Supplementary Credit Memo on the right hand side of the Credit Memo and show the Ref: Posted Credit memo with credit memo number in the description column. Note 1: If the Supplementary field in the credit memo line is checked then only the report will show the Supplementary Credit memo. Also for each line there is an option to select the original credit memo number for which you are generating supplementary credit memo. You can also calculate excise without placing a check mark in supplementary field. Note 2: If the source document type is posted invoice it means initially you have posted an invoice/order to your customer and now you want to adjust some amount with CENVAT against posted invoice In this case the program will show ref: posted invoice with number in the posted credit memo print/preview. Note 3: If the user wants to calculate excise on Charge (Item) (capital Item) Deferred account, then he/she has to place a check mark in the Capital Item field in Item Charges window. And the posted transaction will flow in the BED Credit field of RG 23 C Part II. Note 4: If the user does not have the Return Order granule and the user calculates excise through credit memo then excise amount will not reflect in the RG 23 A/C Part II.
The user can also calculate excise through Return Order. Note: User can also calculate Secondary and higher education CESS (SHE CESS) by defining the percentage in excise posting setup.
Calculation of Service Tax

Calculation of Service Tax in case of Direct Payment made for Services Account.
Direct payment made in cash/cheque through the Cash Payment Voucher & Bank Payment Voucher. Cash Payment Voucher
Navigation: Financial Management Cash Management Cash Payment Voucher
Fill in the fields according to these guidelines: Fields Service Tax Type Description Choose the service tax type from the dropdown button. Available options are: Sale and Purchase Choose the required type from the drop down button. Newly available options are: Service Tax Vendor in case service tax type is Purchase and Service Tax Customer in case service tax type is
TDS/TCS/Service Tax Party Type
Fields
Description Sale. This is only applicable in case of calculating service tax GL to GL and GL to Bank. Choose the required value from the vendor or customer list.
TDS/TCS/Service Tax Party
To calculate service tax while making direct payment against advertisement bill, enter the following information in the Cash Payment Voucher: Posting Date: Document Type: Document No.: Service Tax Type: TDS/TCS/Service Tax Party Type: TDS/TCS/Service Tax Party: Account Type: Account No.: Debit Amount: Bal. Account Type: Bal. Account No.: Post the Cash Payment Voucher 01/02/07 Payment 26 Purchase (select from the dropdown box) Service Tax Vendor (select from the dropdown box) 10000 G/L Account 8410 (Advertisement) 10000 G/L Account 2910 (Cash)

G/L Entry
The program creates the following entry: Particulars Advertisement Service Tax Recoverable To, Cash Type DR DR CR Amount(Rs) 10000 1224 11224
Calculation of Service Tax Base amount = Rs. 10000 Service tax % = 12 eCess % = 2 Tax Amount = 10000*12.24% = 1224
Service Tax Entry
The program will create service tax entry with detailed information and you can also view the service tax entry detail by clicking Amount Received/Paid field in the Service Tax Entry field.
Service Tax Entry Detail
The program will create the service tax entry detail and the value of service tax and eCess will be available for input service credit. Note: In case payment has been made by cheque, the user can post the transaction through the Bank Payment Voucher. In case payment has been made by cash or cheque has been refunded due to some reason fully or partially then also service tax can be calculated with document type Refund.
Note: User can also calculate Secondary and higher education CESS (SHE CESS) by defining the percentage in service tax setup.
Calculation of Service Tax in case of Direct Payment Received against Services Account.
Direct payment received in cash/cheque through the Cash Receipt Voucher & Bank Receipt Voucher. Bank Receipt Voucher
Navigation: Financial Management Cash Management Bank Receipt Voucher
Fill in the fields according to these guidelines: Fields Service Tax Type Description Choose the service tax type from the dropdown box. Available options are: Sale and Purchase. Choose the required type from the drop down button. Newly available options are: Service Tax Vendor in case service tax type is Purchase and Service Tax Customer in case service tax type is Sale. This is only applicable in case of calculating service tax GL to GL and GL to Bank.
TDS/TCS/Service tax Party
Choose the required value from the vendor or customer list.
To calculate service tax while receiving direct payment against advertisement bill, enter the following information in the Bank Receipt Voucher. Posting Date: Document Type: Document No.: Service Tax Type: TDS/TCS/Service Tax Party Type: TDS/TCS/Service Tax Party: Account Type: Account No.: Credit Amount: Bal. Account Type: Bal. Account No.: Post the Cash Payment Voucher 01/02/07 Payment 253 Sale (select from the dropdown box) Service Tax Customer (select from dropdown box) 10000 G/L Account 8410 (Advertisement) 10000 Bank Account Giro

G/L Entry
The program creates the following entry: Particulars Advertisement Service Tax Payable Bank Type CR CR DR Amount(Rs) 10000 1224 11224
Calculation of Service Tax Base amount = Rs. 10000 Service tax % = 12 eCess % = 2. Tax Amount = 10000*12.24% = 1224
Service Tax Entry
The program will create service tax entry with detailed information and you can also view the service tax entry detail by clicking Amount Received/Paid field in the Service Tax Entry window.
The program will create the service tax entry detail. The value of service tax and eCess will be available for making payment of service tax. Note 1: In case payment has been received in cash, the user can post the transaction through Cash Receipt Voucher. In case payment has been received by cash or cheque has been refunded due to some reason fully or partially then also service tax can be calculated with document type Refund.
Note: User can also calculate Secondary and higher education CESS (SHE CESS) by defining the percentage in service tax setup.
Calculation of Service Tax in case of other G/L Account.

Direct payment made by Employee. General Journal
Fill in the fields according to these guidelines: Fields Service Tax Type Description Choose the service tax type from the dropdown box. Available options are: Sale and Purchase. Choose the required type from the drop down button. Newly available options are: Service Tax Vendor in case service tax type is Purchase and Service Tax Customer in case service tax type is Sale. This is only applicable in case of calculating service tax GL to GL and GL to Bank.
TDS/TCS/Service tax Party
Choose the required value from the vendor or customer list.
To calculate service tax when advertisement bill has been paid directly by the employee, enter the following information in the General Journal. Posting Date: Document Type: Document No.: Service Tax Type: TDS/TCS/Service Tax Party Type: TDS/TCS/Service Tax Party: Account Type: Account No.: Amount: Bal. Account Type: Bal. Account No.: Post the Journal 09/02/07 Payment G00166 Purchase (select from the dropdown box) Service Tax Vendor (select from dropdown box) 10000 G/L Account 8410 (Advertisement) 10000 G/L Account 5430 (Employee Balances)

G/L Entry
Particulars Advertisement Service Tax recoverable Employee balances
Type DR DR CR
Amount(Rs) 10000 1224 11224
Calculation of Service Tax Base amount = Rs. 10000 Service tax % = 12 eCess % = 2. Tax Amount = 10000*12.24% = 1224 Service Tax entry
The program will create service tax entry with detailed information and you can also view the service tax entry detail by clicking Amount Received/Paid field in the Service Tax Entry window.
The program will create the service tax entry detail. The value of service tax and eCess will be available for taking credit while making payment of service tax. Note 1: Service tax can be calculated from the General Journals, Journal Voucher by selecting the balancing account as any general ledger account. Note: User can also calculate Secondary and higher education CESS (SHE CESS) by defining the percentage in service tax setup.
Appendix
Opening Tax Entries The existing balances in the tax records (means Central Excise and Service tax) should be posted into the Tax Records as opening balance. Central Excise The journal from which one can post the a. RG 23 A/C Part I (opening quantity particulars). b. DSA (opening quantity particulars). c. PLA (opening balance and components like BED, e-Cess, and so on). d. RG 23A/C Part II (opening balance of CENVAT credit and the components like BED, e-Cess, and so on). e. CENVAT Credit Deferred (opening balance of CENVAT credit and the components like BED, e-Cess, and so on). All the above should be recorded location wise with relevant location details like E.C.C No. For example: X Ltd. has a opening balance of 10 units with a CENVAT Credit Rs 10000 (Components: BED Rs 9000 and e-Cess Rs1000), PLA with Rs 5000 (Components: BED Rs 4500 and e-Cess Rs 500), Finished Goods Stock with 10 units and CENVAT Credit Deferred pertaining to 2 units of capital assets which were Installed on 12-10-2005 is Rs 6000 (Components: BED Rs 5800 and e-Cess Rs 200). The RG 23A Part I should be updated with opening quantity of 10 units PLA should be updated with the opening balance of Rs 5000, the components BED Rs 4500 and e-Cess Rs 500 should also be updated DSA should be updated with opening quantity of 10 units RG 23 A part II should be updated with the opening balance as Rs 10000, the components BED as Rs 9000 and e-Cess as Rs1000 CENVAT Credit Deferred should be updated with opening balance as Rs 6000. The components: BED as Rs 5800
and e-Cess as Rs 200 should be updated along with the entry in RG 23C Part I for 2 units. The date of Installation (12-10-2005) should also be updated.
Service Tax The journal from which one can post the: a. Opening balance of the service tax credit is carried forwarded with the details of the period from which the balance is carried forwarded and the components like service tax and e-Cess. b. Opening balance of the service tax credit with details of components like service tax and e-Cess c. Opening balance of the service tax payable with details of components like service tax and e-Cess d. Opening balance of the service tax receivable with details of components like service tax and e-Cess. All the above should be recorded location wise with relevant location details like Service Tax Registration No.
For example: X Ltd. has opening balances as: I. Service tax credit carried forward Rs 1000 pertaining to the period ending on 01-4-2006 with components: Service Tax as Rs 800 and e-Cess as 200 II. Service tax credit of the period Rs 5000 with components as Service Tax Rs 4500 and e-Cess 500. III. Service tax payable of Rs 6000 with components as Service Tax Rs 5600 and e-Cess 400 IV. Balance receivable for the service tax of Rs 1200 with components as Service Tax Rs 900 and e-Cess 300 Service tax credit carried forward should be updated with Rs 1000 with the details of the carried forward from period ending 1-4-2006, Service Tax Rs 800 and e-Cess Rs 200. Service tax credit for the period should be updated with Rs 5000 with particulars of Service Tax Rs 4500 and e-Cess 500. Service tax of for the period should be updated with Rs 6000 with particulars of Service Tax Rs 5600 and e-Cess Rs 400 Service tax receivable should be updated with Rs 1200 with particulars of Service tax Rs 900 and e-Cess Rs 300
Adjustment of Tax Entries Option for the correction / modification / rectification / adjustment in the tax record (Central excise, Sales tax & VAT, Service tax) components of the tax records against any GL account and posting into respective tax records should be available. Correction / modification / rectification / adjustment may arise due to occurrence of any internal or external event. Internal event may be wastage, scraped mistakes and external event may be change in price or changes in provisions of the respective act. There are three types of adjustments as: positive adjustment, negative adjustment, and correction adjustment. Positive Adjustment: A positive adjustment is the increase in the tax liability, increase in the indirect tax due to increase in sale price or increase in the tax rate. For example: X Ltd. has initially charged its customer Y, service tax of Rs 200 @ 20%; the rate got changed to 22% before the receipt of the amount. The original entry was: Service tax receivable A/C Customer Y A/C Dr Cr 200 200 20 20
Now the adjustment entry will be: Service Tax receivable A/C Dr Customer Y A/C Cr
In this case there should be provision to post the GL accounts: Service Tax Receivable A/C and Customer A/C with Rs 20 along with tax records & tax components. Negative Adjustment: A negative adjustment is the decrease in the tax liability like decrease in the indirect tax due to decrease in sale price or decrease in the tax rate. For example: X Ltd. has initially charged its customer Y service tax of Rs 200 @ 20%; the rate got changed to 15% before the receipt of the amount. The original entry was: Service Tax Receivable A/C Customer Y A/C Now the adjustment entry will be: Customer Y A/C Service Tax Receivable A/C Dr Cr Dr Cr 200 200 50 50
In this case there should be provision to post the GL accounts: Service Tax Receivable A/C and Customer A/C with Rs 50 along with tax records & tax components.
Microsoft Business Solutions Navision 4.0- Multi Location Taxes (I)
Table of Contents
Overview of Functionality......................................................................................5 Detailed Setup...................................................................................................5 Comprehensive Functionality ............................................................................5 Reports..............................................................................................................5 Opening Balances.................................................................................................5 Opening Balance in RG 23 A Part I (Raw Material)...........................................6 Viewing the Posted Transaction ....................................................................7 Opening Balance in RG 23 A Part II (Raw Material)..........................................9 Viewing Posted Transaction ........................................................................10 Opening Balance in RG 23 C Part I (Capital Item) ..........................................13 Viewing the Posted Transaction ..................................................................14 Opening Balance in RG 23 C Part II (Capital Item) .........................................16 Viewing Posted Transaction ........................................................................17 Opening Balance in RG 23 C Part I (Fixed Asset)...........................................20 Viewing the Posted Transaction ..................................................................21 Opening Balance in RG 23 C Part II (Fixed Assets)........................................23 Viewing Posted Transaction ........................................................................24 Opening Balance in Daily Stock Account (DSA)..............................................27 Viewing Posted Transaction ........................................................................29 Opening Balance in Personal Ledger Account (PLA)......................................31 Viewing Posted Transaction ........................................................................31 Opening Balance in CENVAT Cr. Deferred Account (Capital Item).................35 Viewing the Posted Transaction ..................................................................37 Opening Balance of Service tax ......................................................................41 Service Tax Opening ..........................................................................................43 Service Tax Opening in case of Interim (Purchase) ........................................46 Viewing the Posted Transaction ..................................................................48 Service Tax Opening in case of Interim & Recoverable (Purchase)................51 Viewing the Posted Transaction ..................................................................53 Service Tax Opening in case of Interim (Purchase Credit Memo)...................57 Viewing the Posted Transaction ..................................................................58 Service tax Opening in case of Interim & Recoverable (Purchase Credit Memo & Refund) ........................................................................................................61 Viewing the Posted Transaction ..................................................................63 Service Tax Opening in case of Full Payment Paid to the Vendor and the Vendor Invoice is closed. .............................................................................67 Viewing the Posted Transaction ..................................................................68 Service Tax Entry................................................................................................70 Service Tax Opening in case of Interim (Sale) ................................................72 Viewing the Posted Transaction ..................................................................73 Service tax Opening in case of Interim & Payable (Sale) ................................76 Viewing the Posted Transaction ..................................................................78 Service Tax Opening in case of Interim (Sales Credit Memo).........................82 Viewing the Posted Transaction ..................................................................83
Service Tax Opening in case of Interim & Payable (Sales credit memo & Refund) ...........................................................................................................86 Viewing the Posted Transaction ..................................................................88 Service Tax Opening in case of Full Payment is Received from the Customer and the Customer Invoice is closed.................................................................92 Viewing the Posted Transaction ..................................................................93 Service Tax Opening Balance in case of Advance Payment & Refund .......97 Service Tax in case of Advance Payment is Paid to the Vendor .....................97 Viewing the Posted Transaction ................................................................100 Service Tax in case of Refund Payment Paid; is Received from Vendor against Advance Payment. ........................................................................................103 Viewing the Posted Transaction ................................................................105 Service tax in case of Advance payment received from Customer................108 Viewing the Posted Transaction ................................................................110 Service tax in case of Refund payment made to the customer against advance payment. .......................................................................................................114 Viewing the Posted Transaction ................................................................116 Adjustments ......................................................................................................120 Positive Adjustment in Quantities ..................................................................120 Positive adjustment in Quantities (increase in the quantity) and reflected in RG 23 A Part I. ..........................................................................................120 Viewing the Posted Transaction ................................................................121 Positive adjustment in Quantities (increase in the quantity) and reflected in RG 23 C Part I. ..........................................................................................123 Viewing the Posted Transaction ................................................................124 Negative Adjustment in Quantities ................................................................126 Negative adjustment in Quantities (Decrease in the quantity) and reflected in RG 23 A Part I. ..........................................................................................126 Viewing the Posted Transaction ................................................................127 Negative adjustment in Quantities (Decrease in the quantity) and reflected in RG 23 C Part I. ..........................................................................................129 Viewing the Posted Transaction ................................................................130 Positive Adjustment related to RG 23 A Part II entries ..................................132 Viewing Posted Transaction ......................................................................133 Negative Adjustment related to RG 23 A Part II entries ................................136 Viewing Posted Transaction ......................................................................137 Positive Adjustment related to RG 23 C Part II entries..................................140 Viewing Posted Transaction ......................................................................141 Negative Adjustment related to RG 23 C Part II entries ................................145 Viewing Posted Transaction ......................................................................146 Positive Adjustment related to DSA...............................................................149 Viewing Posted Transaction ......................................................................151 Negative Adjustment related to DSA .............................................................152 Viewing Posted Transaction ......................................................................154 VAT Adjustments...........................................................................................155 Service Tax Adjustments...............................................................................155
Adjustment in case of Posted Purchase Invoice. .......................................159 Viewing the Posted Transaction ................................................................162 Adjustment in case of Posted Sales Invoice. .............................................165 Viewing the Posted Transaction ................................................................166 Appendix...........................................................................................................170
Multilocation taxes functionality facilitate the entry of opening balances and adjustments in the statuary records which enable in maintaining, generation of appropriate & accurate statutory records and reports using the existing Navision Localization feature. This feature includes the computation & recording of taxes on General Ledger Account & Charge (Item).
Detailed Setup
Detailed setups of Excise, sales Tax and Service Tax are required for entering opening balances and doing adjustments in the statutory records. The required setups are also used for calculating taxes on G/L Account and Charge (Item).
Following are the comprehensive functionalities covered under Multilocation Taxes. Opening Balances in RG 23 A/C Part I Opening balances in RG 23 A/C Part II Opening Balances in Daily Stock Account (DSA) Opening Balances in Personal Ledger Account (PLA) Opening Balances of Service Tax and eCess Adjustments in excise reflecting to RG 23 A/C Part I & II and DSA Adjustments in Service Tax related transactions Adjustment in VAT Computation and recoding of Excise and VAT on General Ledger account Computation and recording of Excise on Charge (Item) Computation and recording of Service Tax on General Ledger account
Reports
All existing statutory reports of Navision generate the appropriate & accurate records.
Opening Balances
Opening balances of central excise are recoded in the registers, for statutory requirement. Note: It is recommended to create setups related to excise, before updating the excise opening balances in the registers.
Opening Balance in RG 23 A Part I (Raw Material)

Navigation: Purchase Inventory & Costing Item Journal
Fill in the fields according to these guidelines: Field Excise Entry Description Place a check mark in this field if you want to reflect the transaction in RG 23 A Part I and RG 23 C Part I.
To update the opening balances in RG 23 A Part I (in case of Raw Material), fill the fields in the Item Journal window as follows:
Posting Date: Entry Type: Document No.: Item No.: Description: Location: Quantity: Unit of Measurement: Unit Amount: Excise Entry: Amount: Post the Item Journal
31/03/06 Purchase or Positive Adjustment T00042 1000 Bicycle Blue 100 Pcs 350.595 True 35059.50

In the above screens, you can see that the program has updated the following information based on the posted transaction through the Item Journal. Posting date: Description: Base Unit of Measure: Quantity Received: 31/03/06 Bicycle Pcs. 100
Closing Stock: Location Code: Location ECC No.: Item No.: Document No.: Type: Quantity:
100 Blue BXBVS7543890 1000 T00042 Purchase 100
In the report RG 23 A Part I, you can view this Quantity Received as opening balance if there is any other transaction posted after this entry. Note: At the time of updating opening balances for Item/Capital Item, you have to update the quantity in RG 23 A Part I and in RG 23 C Part I.
Opening Balance in RG 23 A Part II (Raw Material)

To update the opening balances in RG 23 A Part II (in case of Raw Material), fill the fields in the General Journal window as follows: Posting Date: Document No.: Account No.: E.C.C. No.: Description: Excise Charge: Excise Record: BED Amount: AED (GSI) Amount: ECess Amount: Amount: Bal. Account Type: Bal. Account No.: Post the General Journal 31/03/06 G00029 2993 BXBVS7543890 Cenvat Cr. Receivable Account True RG 23 A 5000 1000 500 6500 G/L Account 2993
Viewing Posted Transaction

G/L Entry
The program creates the following entry: Particulars Cenvat Cr. Receivable Account To, Cenvat Cr. Receivable Account Type DR CR Amount(Rs) 6500 6500
In the above screen, you can see that the program has updated the following information based on the posted transaction through the General Journal. Posting date: BED Credit: AED (GSI) Credit: Closing Bal. BED/AED: 31/03/06 5000 1000 6000
Closing Bal. other duties: Total BED Amount: Total AED (GSI) Amount: Total eCess Amount: Location E.C.C. No.: Document No.: Type: ECess Credit:
500 5000 1000 500 BXBVS7543890 G00029 Purchase 500
In the report RG 23 A Part II, you can view the amounts as Opening Balance of Duty in Credit if there is any other transaction posted after this entry. In the above transaction there will be no effect of amount in the G/L Account (2993), because 2993 is debited as well as credited at the same time. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Opening Balance in RG 23 C Part I (Capital Item)

Fill in the fields according to these guidelines: Field Excise Entry Description Place a check mark in this field, if you want to reflect the transaction in RG 23 A Part I and RG 23 C Part I.
To update the opening balances in RG 23 C Part I (in case of Capital Item), fill the fields in the Item Journal window as follows: Posting Date: 31/03/06
Entry Type: Document No.: Item No.: Description: Location: Quantity: Unit of Measurement: Unit Amount: Excise Entry: Amount: Post the Item Journal
Purchase or Positive Adjustment T00043 1001 (Capital Item field is True in Item Card) Touring Bicycle Blue 50 Pcs 350.595 True 17529.75

In the above screen, you can see that the program has updated the following information based on the posted transaction through the Item Journal.
Posting date: Description: Base Unit of Measure: Quantity Received: Closing Stock: Location Code: Location ECC No.: Item No.: Document No.: Type: Quantity:
31/03/06 Touring Bicycle Pcs. 50 50 Blue BXBVS7543890 1001 T00043 Purchase 50
In the report RG 23 C Part I, you can view this Quantity Received as opening balance if any other transaction is posted after this entry. Note: At the time of updating opening balances for Item/Capital Item, you have to update the quantity in RG 23 A and C Part I.
Opening Balance in RG 23 C Part II (Capital Item)

To update the opening balances in RG 23 C Part II (in case of Capital Item); fill the fields in the Item Journal window as follows: Posting Date: Document No.: Account No.: E.C.C. No.: Description: Excise Charge: Excise Record: BED Amount: AED (GSI) Amount: ECess Amount: Amount: 31/03/06 G00030 2993 BXBVS7543890 Cenvat Cr. Receivable Account True RG 23 C 10000 5000 1000 16000
Bal. Account Type: Bal. Account No.: Post the General Journal
G/L Account 2993

G/L Entry

Particulars Cenvat Cr. Receivable Account To, Cenvat Cr. Receivable Account Type DR CR Amount(Rs) 16000 16000
In the above screen, you can see that the program has updated the following information based on the posted transaction through the General Journal.
Posting date: BED Credit: AED (GSI) Credit: Closing Bal. Credit CY: ECess Credit: Location E.C.C. No.: Total BED for current year: Total AED (GSI) for CY: Total eCess for CY:
31/03/06 10000 5000 16000 1000 BXBVS7543890 10000 5000 1000
In the report RG 23 C Part II, you can view the amounts as opening Balance of Duty in Credit if there is any other transaction posted after this entry. There will not be any effect of amount in the G/L Account (2993) in the above transaction, because 2993 is debited as well as credited at the same time. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Opening Balance in RG 23 C Part I (Fixed Asset)

Navigation: Financial Management Fixed Asset FA Journal
Fill in the fields according to these guidelines: Field Excise Entry Location Code Description Place a check mark in this field, if you want to reflect the transaction in RG 23 C Part I. Choose the location code from lookup list to flow the Location ECC No. in RG 23 C Part I.
To update the opening balances in RG 23 C Part I (in case of Fixed Assets), fill the fields in the Fixed Assets Journal window as follows: Posting Date: Document No.: FA No.: Description Book Code: FA Posting Type: Description: Amount: Location: Excise Entry: Post the FA Journal 31/03/06 F00007 FA000010 Company Acquisition Mercedes 300 500000 Blue True

RG 23 C Part I
In the above screen, you can see that the program has updated the following information based on the posted transaction through the FA Journal. Posting date: Description: Quantity Received: Document No.: Closing Stock: FA No. /Item No.: Location Code: Location ECC No.: Type: Quantity: Product Type: 31/03/06 Mercedes 300 1 F00007 1 FA 000010 Blue BXBVS7543890 Purchase 1 FA
In the report RG 23 C Part I, you can view this Quantity Received as opening Balance if any other transaction is posted after this entry. Note: As suggested in the User Guide of Fixed Assets that for each Asset, you have to create separate FA Card. Taking this into consideration there is no need to enter the quantity in FA Journal while updating the opening balance, the program will automatically take the quantity as 1. Note: At the time of updating opening balances for fixed assets, you have to update the quantity in RG C Part I.
Opening Balance in RG 23 C Part II (Fixed Assets)

To update the opening balances in RG 23 C Part II (in case of Fixed Assets), fill the fields in General Journal window as follows: Posting Date: 31/03/06
Document No.: Account No.: E.C.C. No.: Description: Excise Charge: Excise Record: BED Amount: AED (GSI) Amount: ECess Amount: Amount: Bal. Account Type: Bal. Account No.: Post the General Journal
G00031 2993 BXBVS7543890 Cenvat Cr. Receivable Account True RG 23 C 20000 10000 5000 35000 G/L Account 2993

G/L Entry

Particulars Cenvat Cr. Receivable Account To, Cenvat Cr. Receivable Account Type DR CR Amount(Rs) 35000 35000
In the above screen, you can see that the program has updated the following information based on the posted transaction through the General Journal. Posting Date: Opening Balance Cr. CY: Closing Bal. Credit CY: BED Credit: AED (GSI) Credit: ECess Credit: Location ECC No.: Total BED for Current Y: Excise Accounting Type: Total AED (GSI) for CY: Total eCess for CY: 31/03/06 16000 (Value that has been entered for Capital Item in the previous Screen) 51000 (16000 previous + 35000 for this transaction) 20000 10000 5000 BXBVS7543890 30000 (10000 previous + 20000 for this transaction) With CENVAT 15000 (5000 previous + 10000 for this transaction) 6000 (1000 previous + 5000 for this transaction)
In the report RG 23 C Part II, you can view the amounts as opening Balance of Duty in Credit if there is any other transaction posted after this entry. There will not be any effect of amount in the G/L Account (2993) in the above transaction, because 2993 is debited as well as credited at the same time. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Opening Balance in Daily Stock Account (DSA)

To update the opening balances in DSA, fill the fields in Item Journal window as follows: Posting Date: Entry Type: Document No.: 31/03/06 Purchase or Positive Adjustment T00062
Item No.: Description: Location: Quantity: Unit of Measurement: Post the Item Journal
70062 (In Item Card Replenishment The program should be prod. Order) Finished Goods Blue 100 Pcs
Generate DSA to populate the opening balance in the DSA.
Navigation: Financial Management General Ledger Periodic Activity Excise Generate DSA
Enter the following information on the Item tab No.: 70062 (Item No. for which you want to update the DSA)
Enter the following information on the Options tab Location Code: Date: Click Ok Blue (Choose from lookup list) 31/03/06 (Enter the date in which you have posted the Item Journal)

DSA Entry
In the above screen, you can see that the program has updated the following information based on the posted transaction through the Item Journal. Posting date: Item No.: 31/03/06 70062
Closing Balance: Location Code: Other Quantity:
100 Blue 100
If you run the DSA report for 31/03/06, Other Qty field will show the value as 100 and Closing Stock field will show the value as 100. In the Daily Stock Account report, you can view the opening balance (100) if any other transaction is posted after this entry.
Opening Balance in Personal Ledger Account (PLA)

To update the opening balances in PLA, fill the fields in General Journal window as follows: Posting Date: Document No.: Account No.: E.C.C. No.: Description: PLA: PLA BED Amount: PLA AED (GSI) Amount: PLA ECess Amount: Amount: Bal. Account Type: Bal. Account No.: Post the General Journal 31/03/06 G00033 2997 BXBVS7543890 PLA True 5000 1000 500 6500 G/L Account 2997
G/L Entry
The program creates the following entry: Particulars PLA To, PLA Type DR CR Amount(Rs) 6500 6500
PLA Entry
In the above screen, you can see that the program has updated the following information based on the posted transaction through the General Journal. Description: Document No.: Posting Date: BED Credit: BED Balance: Other Duties Credit: Other Duties Balance: PLA G00033 31/03/06 5000 5000 1500 1500
Balance BED: Balance AED (GSI): Balance eCess: Location ECC No.: BED Credit: AED (GSI) Credit: ECess Credit:
5000 1000 500 BXBVS7543890 5000 1000 500
In the PLA report, you can view the amounts as opening balance if any other transaction is posted after this entry. There will not be any effect of amount in the G/L Account (2997) in the above transaction, because 2997 is debited as well as credited at the same time. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Opening Balance in CENVAT Cr. Deferred Account (Capital Item)

To update the opening balances in CENVAT Cr. Deferred A/C (Capital Item), fill the fields in the General Journal window as follows: Posting Date: Document No.: Account No.: E.C.C. No.: Description: Excise Charge: Deferred: BED Amount: AED (GSI) Amount: Amount: Bal. Account Type: 31/03/06 (Enter the date of purchase of capital item) G00034 2996 BXBVS7543890 CENVAT Cr. Deferred True True 10000 5000 15000 G/L Account
Bal. Account No.: Post the General Journal
2996
After posting the General Journal, the program will update the RG 23 C Part II with the Total BED and AED (GSI) for the next year. After updating the RG 23 C Part II for Deferred amount, now run the Claim Deferred Excise batch job to take the credit of the excise amount in the next year.
Navigation: Financial Management General Ledger Periodic Activity Excise Claim Deferred Excise.
Enter the following Information on the Option tab: Document No.: Posting Date: G00034 (Document number of the posted transaction at the time of updating opening balance) 01/04/07 (Posting date on which the program will reverse the transaction from CENVAT Cr. Deferred A/C to CENVAT Cr. Receivable A/C), Date should be next year date of the purchase. BXBVS7543890 (Same as entered in the opening balance transaction).
Location E.C.C. No.: Click OK to run the batch job.

G/L Entry
The program creates the following entries: G/L entry for opening balance Particulars CENVAT Cr. Deferred A/C To, CENVAT Cr. Deferred A/C Type DR CR Amount(Rs) 15000 15000
G/L entry after running the batch job (transferring the excise amount from deferred account to Receivable account) Particulars CENVAT Cr. Receivable A/C To, CENVAT Cr. Deferred A/C Type DR CR Amount(Rs) 15000 15000
Now CENVAT Cr. Deferred A/C has a credit balance of Rs. 15000 and it will only settled if the user will update the opening balance of G/L account (Debit the CENVAT Cr. Deferred A/C) with Rs. 15000 while updating the Trial Balance.
RG 23 C Part II Entry (Opening balance)
In the above screen, Total BED for Next Year field has the value as 10000 and Total AED (GSI) for Next Year field has the value as 5000. The program has also updated the Location ECC No. with posting date. Also Deferred field in the excise entry will get the checked status after posting the transaction.
RG 23 C Part II Entry after running the batch job (transferring the excise amount from deferred account to Receivable account)
In the above screen, you can see that the program has transferred the 10000 amount from Total BED for Next Year field to Total BED for Current Year field and 5000 amount from Total AED (GSI) for Next Year field to Total AED (GSI) for CY field. It means that, you can avail the credit of the excise amount.
Note: The posting date of deferred entry at the time of updating the RG23 C Part II should be the date of purchase and the posting date in Claim Deferred Excise batch job should be one year later to the date of purchase. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Opening Balance of Service tax

Note 1: It is recommended to create setups related to Service tax before updating service tax opening balances in the service tax entry and service tax entry details tables. Note 2: Initially user is advised to update vendor and customer balances in the system before entering the opening balances of service tax. Also update the payments related to vendor and customer. After entering invoice and payment for vendor and customer you have to apply both before entering the opening balances of service tax. It is mandatory to have vendor and customer ledger entry before entering opening balances of service tax in the system. Examples: 1. In case of Customer closing balance as on 31/03/06 is Rs. 11224 (10000 is base, 1200 service tax and 24 is eCess) and if you have received Rs. 10000 from the customer and the balance 1224 is yet to be received. Solution: Update the opening balance of customer for Rs. 11224 and also update payment opening for Rs. 10000. After entering the customer details apply these two entries before entering the opening balances of service tax and eCess. 2. In case of vendor closing balance as on 31/03/06 is Rs. 22448 (20000 is base, 2400 is service tax and 48 is eCess amount) and if you have paid Rs. 20000 to the vendor and the balance of 2448 is yet to be paid. Solution: Update the opening balance of vendor for Rs. 22448 and also update payment opening for Rs. 20000. After entering the vendor details apply these two entries before entering the opening balances of service tax and eCess.
Setup for Service Tax Opening
Navigation: Financial Management General Ledger Setup Trial Codes Source Code Setup
Select the source code from lookup list in Service Tax Opening and Service Tax Adjustment fields. Service Tax Batches
Navigation: Financial Management Setup Service Tax Service Tax Batches

Before entering the opening balances of service tax, you must create batch through service tax batches.
Create the Service Tax batches by entering the following fields: Fields Journal Batch Name Description Type Description Enter the code of the batch, you want to create (For example: Opening) Enter the description of the code, you have entered. Choose the type from the down button. The available options are: Opening and Adjustment. Choose the source code from the lookup list.
Source code
Service Tax Opening

Navigation: Financial Management General Ledger Periodic Activity Service Tax Service Tax Opening
New Interface has been provided to enter the opening balances of service tax. Fill in the fields according to these guidelines: Fields Type Description Choose the type from the drop down button. The available options are: Sale and Purchase. Choose the transaction number from the lookup list. By clicking the assist button customer/vendor ledger entries will be open. The program will show the posting date of the selected transaction in this field. This field is editable. This field is not editable and will be flow (True) in case of advance payment from vendor and customer ledger entries. The program will show the document type of the selected transaction in this field. This field is editable. The program will show the document number of the selected transaction in this field. This field is editable. This field will show the party code of the selected transaction. This field is editable. Choose the service tax group code from the lookup list. Select the service tax registration number from the lookup list.
Transaction No.
Posting date
Service Tax on Advance Payment
Document Type
Document No.
Party Code Service tax group code Service tax registration No.
Fields Location Code
Description Select the Location Code from Lookup button. Program will flow the Location ECC No. in the service tax entry and service tax entry details after selecting location code. This exercise will help the user to take the credit of service tax while making payment of Excise duty. Enter the service tax base amount on which service tax has to be calculated. The program will automatically calculate the service tax amount based on the percentage defined in the Service Tax setup. The program will automatically calculate the eCess amount based on the percentage defined in the setup. This field shows the amount which is related to the selected transaction number. This field shows the service tax percentage that has been defined in the setup. This field shows the service tax eCess percentage that has been defined in the setup. This field contains the Service Tax Receivable/Payable Account (Interim) account. This field contains the Service Tax Recoverable and Payable account number. This field shows the amount, which will be based on the selected transaction. In case of purchase transaction, the program will show the remaining amount of service tax in this field, which is still pending to take credit. In case of purchase transaction, the
Service tax base amount Service tax amount
eCess Amount
Payable/Receivable Amount Service Tax % Service Tax eCess %
ST Rec./Pay. Account (Interim)
ST Rec. /Pay. Account
Amount received/paid Remaining amount
Remaining eCess amount
Fields
Description program will show the remaining amount of eCess in this field, which is still pending to take credit. This field shows the remaining amount of service tax in case of advance payment. This field shows the remaining amount of service tax eCess in case of advance payment This field shows the remaining amount of service tax base in case of advance payment By default the program will show G/L Account in this field By default the program will show the interim account number in this field. By default the program will show the G/L Account in this field. By default the program will show the payable or recoverable account number in this field.
Remaining Service tax Amount Remaining Service tax eCess amount
Remaining Service tax base amount
Bal. Account Type (Interim) Bal. Account No. (Interim) Bal. Account Type Bal. Account No.
Note: Also you can post the transactions with dimensions available on the Line menu button in the form.
Service Tax Opening in case of Interim (Purchase)

Enter the opening balance in case of vendor invoice which is still pending for payment and service tax has been calculated at the time of creating invoice. Initially enter the opening balance of vendor including service tax amount. In Service Tax Opening form, select the type as Purchase and select the transaction from the lookup list. After clicking the assist button, Vendor Ledger Entry window opens, in which you can select the transaction for which you want to update the opening balances of service tax. Some fields will get populated on selection of transaction no. like Doc. No., date, Party code, Payable Amount, Amount received/paid.
Enter the following Information in the Service Tax Opening form Type: Transaction No.: Posting Date: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Service Tax Amount: eCess Amount: Payable/Receivable Amount: Service Tax %: Service tax eCess %: ST. Rec./ Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim): Purchase 257 (Selected from vendor ledger entry) 31/03/07 Invoice G00032 10000 Adv. BJX118910100578 10000 1200 24 -11224 12 2 5926 G/L Account 5926
Post the Service Tax Opening Journal.

G/L Entry
The program creates the following G/L entry: Particulars Service Tax Receivable Interim A/C To, Service Tax receivable Interim A/C Type DR CR Amount(Rs) 1224 1224
Service Tax Entry
The program will update service tax entry for the posted transaction with service tax registration number and other details. At the time of making payment to vendor from Navision, journals applying with vendor entry system will create the Service Tax Entry Detail.
Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Service Tax Opening in case of Interim & Recoverable (Purchase)

Enter the opening balance in case vendor invoice and partial payment have been made to the vendor and service tax has been calculated at the time of creating invoice. Initially enter the opening balance of vendor including service tax amount. Also enter the payments that have been paid to the vendor and apply both entries before entering the opening balances of service tax. In Service Tax Opening form select the type as Purchase and select the transaction from the lookup list. After clicking the assist button, Vendor Ledger Entry window opens, in which you can select the transaction for which you want to update the opening balances of service tax.
Enter the following Information in the Service Tax Opening form Type: Transaction No.: Posting Date: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Service Tax Amount: eCess Amount: Payable/Receivable Amount: Service Tax %: Service Tax eCess %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim): ST. Rec/Pay Account: Amount Received/Paid: Remaining Amount: Remaining eCess Amount: Bal. Account type: Bal. Account No.: Purchase 275 (Selected from vendor ledger entry) 31/03/07 Invoice G00045 10000 Adv. BJX118910100578 10000 1200 24 -11224 12 2 5926 G/L Account 5926 2998 10000 1069.14 21.38 G/L Account 2998

G/L Entry
The program creates the following G/L entry: Particulars Service Tax Receivable Interim A/C To, Service Tax Receivable Interim A/C Service Tax Recoverable A/C Service Tax Recoverable A/C Type DR CR DR CR Amount(Rs) 1224 1224 1090.52 1090.52
Service Tax Entry
The program will update service tax entry for the posted transaction with service tax registration number and other details. You can view the service tax entry details by clicking the lookup button in Amount Received/Paid field of the Service Tax Entry window.
The program will create service tax entry detail and the transaction will available to take credit while making payment of service tax liability. At the time of making the balance payment to the vendor, the program will create the service tax entry details. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Service Tax Opening in case of Interim (Purchase Credit Memo)

Enter the opening balance of service tax in case of purchase credit memo. Initially enter the opening balance of vendor (Credit memo) including service tax amount. In Service Tax Opening form, select the type as Purchase and select the transaction from the lookup list. After clicking the assist button, Vendor Ledger Entry window opens, in which you can select the transaction for which you want to update the opening balances of service tax.
Enter the following Information in the Service tax Opening form Type: Transaction No.: Posting Date: Document Type: Document No.: Purchase 282 (Selected from vendor ledger entry) 31/03/07 credit memo G00048
Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Service Tax Amount: eCess Amount: Payable/Receivable Amount: Service Tax %: Service Tax eCess %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim):
10000 Adv. BJX118910100578 -5000 -600 -12 5612 12 2 5926 G/L Account 5926
Post the Service tax Opening Journal.

G/L Entry
The program creates the following G/L entry: Particulars Service Tax Receivable Interim A/C To, Service Tax Receivable Interim A/C Type DR CR Amount(Rs) 612 612
Service Tax Entry
The program will update service tax entry for the posted transaction with service tax registration number and other details. At the time of making refund to vendor from Navision, journals applying with vendor entry system will create the service tax entry detail. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Service tax Opening in case of Interim & Recoverable (Purchase Credit Memo & Refund)
Enter the opening balance in case of vendor purchase credit memo and the partial payment has been refunded by the vendor and service tax has been calculated at the time of creating credit memo. Initially enter the opening balance of vendor including service tax amount and also the refund that have been paid received by the vendor and apply both entries before entering the opening balances of service tax. In Service Tax Opening form, select the type as Purchase and select the transaction from the lookup list. After clicking the assist button, Vendor ledger Entry window opens in which you can select the transaction for which you want to update the opening balances of service tax.
Enter the following Information in the Service tax Opening form Type: Transaction No.: Posting Date: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Service Tax Amount: eCess Amount: Payable/Receivable Amount: Service Tax %: Service tax eCess %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim): ST. Rec/Pay Account: Amount Received/Paid: Remaining Amount: Remaining eCess Amount: Bal. Account type: Bal. Account No.: Purchase 296 (Selected from vendor ledger entry) 31/03/07 credit memo G00065 10000 Adv. BJX118910100578 -5000 -600 -12 5612 12 2 5926 G/L Account 5926 2998 -2000 -213.83 -4.28 G/L Account 2998

G/L Entry
The program creates the following G/L entry: Particulars Service Tax Receivable Interim A/C To, Service Tax receivable Interim A/C Service Tax Recoverable Service Tax Recoverable Type DR CR DR CR Amount(Rs) 612 612 218.11 218.11
Service Tax Entry
The program will update service tax entry for the posted transaction with service tax registration number and other details. You can view the service tax entry detail by clicking the the lookup button in Amount Received/Paid field of the Service Tax Entry window.
The program will update service tax entry detail with negative values and document type will be refunded. At the time of receiving balance payment (refund) from the vendor, the program will create the service tax entry details. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Service Tax Opening in case of Full Payment Paid to the Vendor and the Vendor Invoice is closed.
In case full payment is paid to the vendor and the vendor invoice is closed, you can directly enter the opening balances of service tax and there is no need to create the vendor balances. Service Tax Opening form
Enter the following Information in the Service Tax Opening form: Type: Transaction No.: Posting Date: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Service Tax Amount: eCess Amount: Payable/Receivable Amount: Purchase Blank 31/03/07 Payment Op001 Blank or you can give the party code. Adv. BJX118910100578 100000 12000 240 -112240
Service Tax %: Service Tax eCess %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim): ST. Rec/Pay Account: Amount Received/Paid: Remaining Amount: Remaining eCess Amount: Bal. Account Type: Bal. Account No.:
12 2 5926 G/L Account 5926 2998 112240 12000 240 G/L Account 2998

G/L Entry
The program creates the following G/L entry: Particulars Service Tax Recoverable Service Tax Recoverable Type DR CR Amount(Rs) 12240 12240
Service Tax Entry
The program will update service tax entry for the posted transaction with service tax registration number and other details. You can view the service tax entry detail by clicking the lookup button in Amount Received/Paid field of the Service Tax Entry window.
The program will update service tax entry detail with positive values. Document type will be payment and the service tax amount will be available for credit at the time of making payment of service tax liability. Note: You can enter the opening balances of document type refund in case all credit notes are closed. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Service Tax Opening in case of Interim (Sale)

Enter the opening balance in case of customer invoice which is still pending for payment and service tax has been calculated at the time of creating invoice. Initially enter the opening balance of customer including service tax amount. In Service Tax Opening form, select the type as Sale and select the transaction from the lookup list. After clicking the assist button, Customer Ledger Entry window opens in which you can select the transaction for which you want to update the opening balances of service tax.
Enter the following Information in the Service Tax Opening form Type: Transaction No.: Posting Date: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Sale 324 (Selected from customer ledger entry) 31/03/07 Invoice G00067 10000 Adv. BJX118910100578
Service Tax Base Amount: Service Tax Amount: eCess Amount: Payable/Receivable Amount: Service Tax %: Service tax eCess %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim):
-10000 -1200 -24 11224 12 2 5925 G/L Account 5925

G/L Entry
The program creates the following G/L entry: Particulars Service Tax Payable Interim A/C To, Service Tax Payable Interim A/C Type DR CR Amount(Rs) 1224 1224
Service Tax Entry
The program will update service tax entry for the posted transaction with service tax registration number and other details. At the time of receiving payment from customer from Navision, journals applying with customer entry system will create the service tax entry detail.
Service tax Opening in case of Interim & Payable (Sale)

Enter the opening balance in case of customer invoice and the partial payment have been received from the customer and service tax has been calculated at the time of creating invoice. Initially enter the opening balance of customer including service tax amount and also the payment that have been received from the customer. Apply both entries before entering the opening balance of service tax. In Service Tax Opening form select the type as Sale and select the transaction from the lookup list. After clicking the assist button, Customer Ledger Entry window opens, in which you can select the transaction for which you want to update the opening balances of service tax.
Enter the following Information in the Service Tax Opening form Type: Transaction No.: Posting Date: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Service Tax Amount: eCess Amount: Payable/Receivable Amount: Service Tax %: Service Tax eCess %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim): ST. Rec/Pay Account: Amount Received/Paid: Remaining Amount: Remaining eCess Amount: Bal. Account Type: Bal. Account No.: Sale 327 (Selected from customer ledger entry) 31/03/07 Invoice G00069 10000 Adv. BJX118910100578 -10000 -1200 -24 11224 12 2 5925 G/L Account 5925 5923 -10000 0 (Only applicable in purchase type transaction) 0(Only applicable in purchase type transaction) G/L Account 5923

G/L Entry
The program creates the following G/L entry: Particulars Service Tax Payable Interim A/C To, Service Tax payable Interim A/C Service Tax Payable A/C Service Tax Payable A/C Type DR CR DR CR Amount(Rs) 1224 1224 1090.52 1090.52
Service Tax Entry
The program will update service tax entry for the posted transaction with service tax registration number and other details. You can view the service tax entry detail by clicking the lookup button in Amount Received/Paid field in the Service Tax Entry window.
The program will create service tax entry detail and the transaction will be available in Service Tax Payment form. At the time of receiving the balance payment from customer, the program will create the service tax entry details. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Service Tax Opening in case of Interim (Sales Credit Memo)

Enter the opening balance of service tax in case of sales credit memo. Initially enter the opening balance of customer (Credit memo) including service tax amount. In Service Tax Opening form select the type as Sale and select the transaction from the lookup list. After clicking the assist button, Customer Ledger Entry window opens in which you can select the transaction for which you want to update the opening balances of service tax.
Enter the following Information in the Service Tax Opening form: Type: Transaction No.: Posting Date: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Service Tax Amount: Sale 331 (Selected from customer ledger entry) 31/03/07 credit memo G00071 10000 Adv. BJX118910100578 5000 600
eCess Amount: Payable/Receivable Amount: Service Tax %: Service tax eCess %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim):
12 -5612 12 2 5925 G/L Account 5925

G/L Entry
The program creates the following G/L entry: Particulars Service Tax Payable Interim A/C To, Service Tax Payable Interim A/C Type DR CR Amount(Rs) 612 612
Service Tax Entry
The program will update service tax entry for the posted transaction with service tax registration number and other details. Document type will be credit memo and values will be in positive. At the time of making refund to customer from Navision, journals applying with customer entry system will create the service tax entry detail.
Service Tax Opening in case of Interim & Payable (Sales credit memo & Refund)
Enter the opening balance in case of customer sales credit memo and the partial payment has been refunded to the customer and service tax has been calculated at the time of creating credit memo. Initially enter the opening balance of customer including service tax amount. Also enter the refund that have been paid to the customer and apply both entries before entering the opening balances of service tax. In Service Tax Opening form, select the type as Sale and select the transaction from the lookup list. After clicking the assist button, Customer Ledger Entry window opens, in which you can select the transaction for which you want to update the opening balances of service tax.
Enter the following Information in the Service Tax Opening form Type: Transaction No.: Posting Date: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Service Tax Amount: eCess Amount: Payable/Receivable amount: Service Tax %: Service tax eCess %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim): ST. Rec/Pay Account: Amount Received/Paid: Remaining Amount: Remaining eCess Amount: Bal. Account Type: Bal. Account No.: Sale 333 (Selected from customer ledger entry) 31/03/07 credit memo G00072 10000 Adv. BJX118910100578 5000 600 12 -5612 12 2 5925 G/L Account 5925 5923 2000 0 (Only applicable in purchase transaction) 0 (Only applicable in purchase transaction) G/L Account 5923

G/L Entry
The program creates the following G/L entry: Particulars Service Tax payable Interim A/C To, Service Tax payable Interim A/C Service Tax payable Service Tax payable Type DR CR DR CR Amount(Rs) 612 612 218.11 218.11
Service Tax Entry
The program will create service tax entry detail with positive values and document type will be refunded. At the time of making balance payment (refund) to the customer, the program will create the service tax entry details. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Service Tax Opening in case of Full Payment is Received from the Customer and the Customer Invoice is closed.
In case full payment is received from the customer and the customer invoice is closed, you can directly enter the opening balances of service tax and there is no need to create the customer balances. Service Tax Opening form
Enter the following Information in the Service Tax Opening form: Type: Transaction No.: Posting Date: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Service Tax Amount: eCess Amount: Payable/Receivable Amount: Sale Blank 31/03/07 Payment Op002 Blank or you can give the party code. Adv. BJX118910100578 -200000 -24000 -480 224480
Service Tax %: Service Tax eCess %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim): ST. Rec/Pay Account: Amount Received/Paid: Remaining Amount: Remaining eCess Amount: Bal. Account Type: Bal. Account No.:
12 2 5925 G/L Account 5925 5923 -224480 0 (Only applicable in case of purchase transaction) 0 (Only applicable in case of purchase transaction) G/L Account 5923

G/L Entry
The program creates the following G/L entry: Particulars Service Tax Payable Service Tax Payable Type DR CR Amount(Rs) 24480 24480
Service Tax Entry
The program will create service tax entry detail with negative values. Document type will be payment and the service tax amount will be available for payment in the Service Tax Payment form. Note: You can also enter the opening balances of document type as Refund in case all credit notes are closed.
Service Tax Opening Balance in case of Advance Payment & Refund
Service Tax in case of Advance Payment is Paid to the Vendor

In case advance payment is paid to the vendor, user has to update the opening balance of vendor with a check mark in Serv. Tax on Advance Payment field in Vendor Ledger Entry.
Service Tax Opening form
Enter the following Information in the Service Tax Opening form Type: Transaction No.: Posting Date: Service Tax on Adv. Payment: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax registration No.: Service Tax Base Amount: Service Tax Amount: eCess Amount: Payable/Receivable amount: Service Tax %: Service Tax eCess %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim): ST. Rec/Pay Account: Amount Received/Paid: Remaining Amount: Remaining eCess Amount: Remaining Service Tax Amount: Remaining ST ECess Amount: Remaining ST Base Amount: Bal. Account Type: Bal. Account No.: Purchase 354 (Select from vendor ledger entry) 31/03/07 True Payment 3427 10000. Adv. BJX118910100578 10000 1200 24 11224 12 2 5926 G/L Account 5926 2998 0 0 0 1200 24 10000 G/L Account 2998

G/L Entry
The program creates the following G/L entry: Particulars Service Tax Receivable Interim Service Tax Receivable Interim Type DR CR Amount(Rs) 1224 1224
Service Tax Entry
The program will create the service tax entry with a check mark in the Serv. Tax on Advance Payment field and also will update the Remaining Serv. Tax Amount field, Remaining Serv. Tax eCess Amount field and Remaining Serv. Tax Base Amount field with values. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Service Tax in case of Refund Payment Paid; is Received from Vendor against Advance Payment.
In case refund payment paid; is received from the vendor against advance payment then you have to update the opening balance of vendor with a check mark in the Serv. Tax Advance Payment field of the Vendor Ledger Entry window. Service Tax Opening form
Enter the following Information in the Service Tax Opening form Type: Transaction No.: Posting Date: Service Tax on Adv. Payment: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Service Tax Amount: eCess Amount: Payable/Receivable Amount: Service Tax %: Service Tax eCess %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim): ST. Rec/Pay Account: Amount Received/Paid: Remaining Amount: Remaining eCess Amount: Remaining Service Tax Amount: Remaining ST ECess Amount: Remaining ST Base Amount: Bal. Account Type: Bal. Account No.: Purchase 356 (Select from vendor ledger entry) 31/03/07 True Refund 3428 10000. Adv. BJX118910100578 -10000 -1200 -24 -11224 12 2 5926 G/L Account 5926 2998 0 0 0 -1200 -24 -10000 G/L Account 2998

G/L Entry
The program creates the following G/L entry: Particulars Service Tax Receivable Interim Service Tax Receivable Interim Type DR CR Amount(Rs) 1224 1224
Service Tax Entry
The program will create the service tax entry with a check mark in the Serv. Tax on Advance Payment field and also will update the Remaining Serv. Tax Amount field, Remaining Serv. Tax eCess Amount field and Remaining Serv. Tax Base Amount field with values. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Service tax in case of Advance payment received from Customer

In case advance payment is received from the customer, you have to update the opening balance of customer with a check mark in the Serv. Tax on Advance Payment field of the Customer Ledger Entry window. Service Tax Opening form
Enter the following Information in the Service Tax Opening form Type: Transaction No.: Posting Date: Service Tax on Adv. Payment: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Service Tax Amount: eCess Amount: Payable/Receivable Amount: Service Tax %: Service Tax eCess %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim): ST. Rec/Pay Account: Amount Received/Paid: Remaining Amount: Remaining eCess Amount: Remaining Service Tax Amount: Remaining ST ECess Amount: Remaining ST Base Amount: Bal. Account Type: Bal. Account No.: Sale 358 (Select from customer ledger entry) 31/03/07 True Payment 3429 10000. Adv. BJX118910100578 -10000 -1200 -24 -11224 12 2 5925 G/L Account 5925 5923 0 0 0 -1200 -24 -10000 G/L Account 5923

G/L Entry
The program creates the following G/L entry: Particulars Service Tax Payable Interim Service Tax Payable Interim Service Tax Payable Service Tax Payable Type DR CR DR CR` Amount(Rs) 1224 1224 1224 1224
Service Tax Entry
The program will create the service tax entry with a check mark in the Serv. Tax on Advance Payment field and also will update the Remaining Serv. Tax Amount field, Remaining Serv. Tax eCess Amount field and Remaining Serv. Tax Base Amount field with values You can view the service tax entry detail by clicking the assist button in Amount Received/Paid field in the Service Tax Entry window.
The program will create the service tax entry detail and the amount of service tax and ecess will be available for payment.
Service tax in case of Refund payment made to the customer against advance payment.
In case refund payment is made to the customer against advance payment then you have to update the opening balance of customer with a check mark in the Serv. Tax Advance Payment field of the Customer Ledger Entry window. Service Tax Opening form
Enter the following Information in the Service Tax Opening form Type: Transaction No.: Posting Date: Service Tax on Adv. Payment: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Service Tax Amount: eCess Amount: Payable/Receivable Amount: Service Tax %: Service Tax eCess %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim): ST. Rec/Pay Account: Amount Received/Paid: Remaining Amount: Remaining eCess Amount: Remaining Service Tax Amount: Remaining ST ECess Amount: Remaining ST Base Amount: Bal. Account Type: Bal. Account No.: Sale 360 (Select from customer ledger entry) 31/03/07 True Refund 3430 10000. Adv. BJX118910100578 10000 1200 24 11224 12 2 5925 G/L Account 5925 5923 0 0 0 1200 24 10000 G/L Account 5923

G/L Entry
The program creates the following G/L entry: Particulars Service Tax Payable Interim Service Tax Payable Interim Service Tax Payable Service Tax Payable Type DR CR DR CR` Amount(Rs) 1224 1224 1224 1224
Service Tax Entry
The program will create the service tax entry with a check mark in the Serv. Tax on Advance Payment field and also will update the Remaining Serv. Tax Amount field, Remaining Serv. Tax eCess Amount field and Remaining Serv. Tax Base Amount field with values. You can view the service tax entry detail by clicking the assist button in Amount Received/Paid field of the Service Tax Entry window.
The program will create the service tax entry detail. The amount of service tax and ecess will be available for the adjustment in Service Tax Payment form. Note: Second option to enter the opening balances in case of advance payment received from customer or paid to vendor, you can also use General Journal, Cash receipt/payment voucher, Bank receipt/payment voucher, payment journal or cash
receipt journal by making a transaction for vendor/customer with Serv. Tax on Advance payment field true and calculate service tax in the transaction itself. System will create vendor/customer ledger entries and also service tax entry and service tax entry details. You will need to keep same account in interim receivable/payable account in service tax setup. Note: User can also update the opening balances for Secondary and higher education CESS (SHE CESS)
Adjustments
Positive Adjustment in Quantities
Positive adjustment in Quantities (increase in the quantity) and reflected in RG 23 A Part I.
To do the positive adjustment of quantity (Raw Material) and RG 23 A Part I to be affected fill the fields in Item Journal window as follows:
Posting Date: Entry Type: Document No.: Item No.: Description: Location: Quantity: Unit of Measurement: Unit Amount:
10/11/07 Positive Adjustment T00055 1000 Bicycle Blue 10 Pcs 350.595
Excise Entry: Amount: Post the Item Journal
True 3505.95

Posting date: Description: Base Unit of Measure: Quantity Received: Closing Stock: Location Code: Location ECC No.: Item No.: Document No.: Type: Quantity: Opening Stock:
10/11/07 Bicycle Pcs. 10 145 Blue BXBVS7543890 1000 T00055 Purchase 10 135
The program will update the closing stock as the quantity has been increased. Item Ledger Entry will also get affected with the entry type Positive Adjustment.
Positive adjustment in Quantities (increase in the quantity) and reflected in RG 23 C Part I.

To do the positive adjustment of quantity (Capital Item) and RG 23 C Part I to be affected, fill the fields in the Item Journal window as follows: . Posting Date: Entry Type: Document No.: Item No.: Description: Location: Quantity: Unit of Measurement: Unit Amount: Excise Entry: 10/11/07 Positive Adjustment T00057 1001 (Capital Item) Touring Bicycle Blue 10 Pcs 350.595 True
Amount: Post the Item Journal
3505.95

Posting date: Description: Base Unit of Measure: Quantity Received: Closing Stock: Location Code: Location ECC No.: FA/Item No.: Document No.: Type: Quantity: Opening Stock: Product Type:
10/11/07 Touring Bicycle Pcs. 10 250 Blue BXBVS7543890 1001 T00057 Purchase 10 240 Item
The program will update the closing stock as the quantity has been increased. Item Ledger Entry will also get affected with the entry type Positive Adjustment.
Negative Adjustment in Quantities

Negative adjustment in Quantities (Decrease in the quantity) and reflected in RG 23 A Part I.
To do the negative adjustment of quantity (Raw Material) and RG 23 A Part I to be affected, fill the fields in the Item Journal window as follows: . Posting Date: Entry Type: Document No.: 10/11/07 Negative Adjustment T00056
Item No.: Description: Location: Quantity: Unit of Measurement: Unit Amount: Excise Entry: Amount: Post the Item Journal
1000 Bicycle Blue 5 Pcs 350.595 True 1752.98

Posting date: Description: Base Unit of Measure: Quantity Sold: Closing Stock: Location Code: Location ECC No.: Item No.: Document No.: Type: Quantity: Opening Stock:
10/11/07 Bicycle Pcs. 5 140 Blue BXBVS7543890 1000 T00056 Sale -5 145
Quantity field will get affected with (-) sign and the closing stock will be decreased. Item Ledger Entry will also get affected with the entry type Negative Adjustment.
Negative adjustment in Quantities (Decrease in the quantity) and reflected in RG 23 C Part I.

To do the negative adjustment of quantity (Capital Item) and RG 23 C Part I to be affected, fill the fields in the Item Journal window as follows: . Posting Date: 10/11/07 Entry Type: Negative Adjustment Document No.: T00058 Item No.: 1001 (Capital Item) Description: Touring Bicycle Location: Blue Quantity: 5 Unit of Measurement: Pcs Unit Amount: 350.595 Excise Entry: True
Amount: Post the Item Journal
1752.98

Posting date: Description: Base Unit of Measure: Quantity Sold: Closing Stock: Location Code: Location ECC No.: FA No./Item No.: Document No.: Type: Quantity: Opening Stock: Product Type:
10/11/07 Touring Bicycle Pcs. 5 245 Blue BXBVS7543890 1001 T00058 Sale -5 250 Item
Quantity field will get affected with (-) sign and the closing stock will be decreased. Item Ledger Entry will also get affected with the entry type Negative Adjustment.
Positive Adjustment related to RG 23 A Part II entries

To do the Positive adjustment in RG 23 A Part II, fill the fields in the Item Journal window as follows: . Posting Date: Document No.: Account No.: E.C.C. No.: Description: Excise Charge: Excise Record: BED Amount: Amount: 10/11/07 G00045 2993 BXBVS7543890 Cenvat Cr. Receivable Account True RG 23 A 5000 5000
Bal. Account Type: Bal. Account No.: Post the General Journal
G/L Account 9370 (Adjustment in RG 23 A/C Part II)

G/L Entry
The program creates the following entry Particulars Cenvat Cr. Receivable Account To, Adjustment in RG 23 A/C Part II Type DR CR Amount(Rs) 5000 5000
The program has debited CENVAT Cr. Receivable Account and credited Adjustment in RG 23 A/C part II Account.
The program will update RG 23 A Part II with BED Credit amount and Location ECC No. will also flow.
Note: User can also do the positive adjustment for Secondary and higher education CESS (SHE CESS)
Negative Adjustment related to RG 23 A Part II entries

To do the Negative adjustment in RG 23 A Part II fill the fields in the General Journal window as follows: . Posting Date: Document Type: Document No.: Account No.: E.C.C. No.: Description: Excise Charge: Excise Record: BED Amount: Amount: Bal. Account Type: Bal. Account No.: Post the General Journal 10/11/07 Credit Memo G00046 2993 BXBVS7543890 Cenvat Cr. Receivable Account True RG 23 A -2000 -2000 G/L Account 9370 (Adjustment in RG 23 A/C Part II)

G/L Entry
The program creates the following entry: Particulars Cenvat Cr. Receivable Account To, Adjustment in RG 23 A/C Part II Type CR DR Amount(Rs) 2000 2000
The program has credited CENVAT Cr. Receivable Account and debited Adjustment in RG 23 A/C part II Account. Note: In case of negative adjustment in RG 23 A Part II, document type should be Credit Memo in the General Journal.
The program will update RG 23 A Part II with BED Debit amount and Location ECC No. will also flow. Note: User can also do the negative adjustment for Secondary and higher education CESS (SHE CESS)
Positive Adjustment related to RG 23 C Part II entries

To do the Positive adjustment in RG 23 C Part II, fill the fields in the General Journal window as follows: Posting Date: Document No.: Account No.: E.C.C. No.: Description: Excise Charge: Excise Record: BED Amount: Amount: Bal. Account Type: Bal. Account No.: Post the General Journal 10/11/07 G00047 2993 BXBVS7543890 Cenvat Cr. Receivable Account True RG 23 C 10000 10000 G/L Account 9370 (Adjustment in RG 23 A/C Part II)

G/L Entry
The program creates the following entry: Particulars Cenvat Cr. Receivable Account To, Adjustment in RG 23 A/C Part II Type DR CR Amount(Rs) 10000 10000
The program has debited CENVAT Cr. Receivable Account and credited Adjustment in RG 23 A/C part II Account.
The program will update RG 23 C Part II with BED Credit amount and Location ECC No. will also flow. Note: User can also do the positive adjustment for Secondary and higher education CESS (SHE CESS)
Negative Adjustment related to RG 23 C Part II entries

To do the Negative adjustment in RG 23 C Part II, fill the fields in the General Journal window as follows: Posting Date: Document Type: Document No.: Account No.: E.C.C. No.: Description: Excise Charge: Excise Record: BED Amount: Amount: Bal. Account Type: Bal. Account No.: Post the General Journal 10/11/07 Credit Memo G00050 2993 BXBVS7543890 Cenvat Cr. Receivable Account True RG 23 C -5000 -5000 G/L Account 9370 (Adjustment in RG 23 A/C Part II)

G/L Entry
The program creates the following entry: Particulars Cenvat Cr. Receivable Account To, Adjustment in RG 23 A/C Part II Type CR DR Amount(Rs) 5000 5000
The program has credited CENVAT Cr. Receivable Account and debited Adjustment in RG 23 A/C part II Account. Note: In case of Negative adjustment in RG 23 C Part II, document type should be Credit Memo in the General Journal.
RG 23 C part II Entry
The program will update RG 23 C Part II with BED Debit amount and Location ECC No. will also flow. Note: User can also do the negative adjustment for Secondary and higher education CESS (SHE CESS)
Positive Adjustment related to DSA

To do the Positive adjustment in DSA, fill the fields in the Item Journal window as follows:. Posting Date: Entry Type: Document No.: Item No.: Description: Location: Quantity: Unit of Measurement: Post the Item Journal 18/01/07 Positive Adjustment T00064 70062 (In Item Card Replenishment, the Replenishment system should be Prod. Order) Finished Goods Blue 10 Pcs
Generate DSA to populate the Quantity in the DSA.
Enter the following information on the Options tab Location Code: Date: Click OK Blue (Select from lookup list) 18/01/07 (Enter the date in which you have posted the Item Journal)

DSA Entry
In the above screen, you can see that the program has updated the following information based on the posted transaction through the Item Journal. Posting date: Item No.: Opening Stock: Closing Balance: Location Code: Other Quantity: 18/01/07 70062 100 110 Blue 10
Other Quantity field has been updated with value 10 as positive adjustment has been done through the Item Journal. If you run the DSA report, Opening Balance field will show the value as 100, Other Qty field will show the value as 10 and Closing Balance field will show the value as 110.
Negative Adjustment related to DSA

Enter the following information to do the Negative adjustment in DSA. Posting Date: Entry Type: Document No.: Item No.: 19/01/07 Negative Adjustment T00065 70062 (In Item Card Replenishment The program should be prod. Order) Finished Goods Blue 5 Pcs
Description: Location: Quantity: Unit of Measurement: Post the Item Journal
Generate DSA to populate the Quantity in the DSA.
Enter the following information on the Options tab Location Code: Date: Click Ok Blue (Select from lookup list) 19/01/07 (Enter the date in which you have posted the Item Journal)

DSA Entry
In the above screen, you can see that the program has updated the following information based on the posted transaction through the Item Journal. Posting date: Item No.: Opening Stock: Closing Balance: Location Code: Other Quantity: 19/01/07 70062 110 105 Blue -5
Other Quantity field has been updated with value as -5, as negative adjustment has been done through Item Journal. If you run the DSA report, Opening Balance field will show the value as 110, Other Qty field will show the value as -5, and Closing Balance field will show the value as 105.
VAT Adjustments
Note: For VAT Adjustments please refer the 13702(13705) _VAT Credit on Capital Goods, Setoff and Refund (User Guide)
Service Tax Adjustments

Service tax adjustments can be handled in case of increase or decrease of service tax and eCess percentages of posted Purchase Invoice/credit memo, Sale Invoice/credit memo and Payment/refund.
Setup for Service Tax Adjustment
Navigation: Financial Management General Ledger Setup Trial Codes Source Code Setup
Select the source code from lookup list in the Service Tax Opening field and in the Service tax adjustment field. Service Tax Batches
Navigation: Financial Management Setup Service Tax Service Tax Batches

Before entering the opening balances of service tax, you must create batch through Service Tax Batches window.
Create the service tax batches by entering the following fields: Fields Journal Batch Name Description Type Description Enter the code of the batch, you want to create (For example: Opening) Enter the description of the code you have entered. Select the type from the down button. The available options are: Opening and Adjustment. Select the source code from lookup list in this field.
Source code
Service Tax Adjustment form
Navigation: Financial Management General Ledger Periodic Activity Service Tax Service Tax Adjustment
New Interface has been provided to handle the adjustments related to service tax entries.
Fill in the fields according to these guidelines Fields Apply ST Entry No. Description Select the service tax entry number from the lookup list for which posted transaction you want to make adjustments. The program will automatically flow the type after selecting the service tax entry number. The available options are: Sales and Purchase. The program will show the posting date of the selected transaction. This field is editable. The program will show the document number of the selected transaction. This field is editable Enter the external document number in this field, in case of purchase type transaction. This field will show the party code of the selected transaction. The program will show the service tax group of selected transaction. The program will show the service tax registration number of selected transaction. The program will show the applied document type of the selected transaction. The program will show the applied document number of the selected transaction. The program will show the applied posting date of the selected transaction. The program will show the applied service tax base amount of the selected transaction. The program will show the applied service tax amount of the selected transaction.
Type
Posting date
Document No.
External Document No. Party Code Service tax group code Service tax registration No.
Applied Document Type Applied Document No.
Applied Posting Date Applied ST Base Amount
Applied Service Tax Amount
Fields Applied eCess amount Applied Service Tax % Applied Service Tax eCess % New Service Tax % New Service Tax eCess % Diff Service Tax Amount
Description The program will show the applied eCess amount of the selected transaction. The program will show the applied service tax % of the selected transaction. The program will show the applied service tax eCess % of the selected transaction. Enter the new service tax % in this field. Enter the new service tax eCess % in this field. The program will show the difference of service tax amount which arrives after entering the new service tax %. The program will show the diff of eCess amount which arrives after entering the new service tax eCess % The program will show the Interim account after selecting the transaction. This field shows the type of Balance account (Interim). This field shows the Balance account number (Interim). This field shows the Balance account type of the transaction. This field shows the Balance account number of the transaction.
Diff eCess Amount
ST. Rec./Pay. Account (Interim) Bal. Account Type (Interim) Bal. Account No. (Interim) Bal. Account Type Bal. Account No.
Note: You can post the transactions with available dimensions in the form on Line menu button.
Adjustment in case of Posted Purchase Invoice.

Initially there should be some posted purchase invoice with service tax calculation. Service Tax Adjustment form
Navigation:
Financial Management General Ledger Periodic Activity Service Tax Service Tax Adjustment
Click the Applied ST Entry No. field to select the service tax entry. Service tax entry window opens in which you can the select the entry.
Click OK.
The transaction that is selected was posted with services % 10 and eCess % 1, now you have to make service tax % as 12 and eCess % as 2. Enter the following fields in the service tax adjustment form.
Applied ST Entry No: Type: Posting Date: Document No.: External Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Applied Document Type: Applied Document No.: Applied Posting Date: Applied ST Base Amount: Applied Service Tax Amount: Applied eCess Amount: Applied Service Tax %: Applied Service Tax eCess %: New Service Tax %: New Service Tax eCess %: Diff Service Tax Amount: Diff Service Tax eCess Amount: ST. Rec./Pay. Account (Interim): Bal. Account Type (Interim): Bal. Account No. (Interim): Bal. Account Type: Bal. Account No.:
52 (Selected from service tax entry) Purchase 01/04/07 3432A ADJ004 10000. Adv. HXJ118910111357 10000 Invoice G00089 01/04/07 10000 1000 10 10 1 12 (New %) 2 (New%) 200 14 5926 Vendor 10000 G/L Account 2998
Post the Service tax Adjustment Journal.

G/L Entry
The program creates the following entry: Particulars Service Tax Receivable Interim Vendor Type DR CR Amount(Rs) 214 214
The program has created the GL entry with difference amount of service tax and eCess.
Service Tax Entry
The program will also create the new service tax entry with a check mark in the Adjusted field. Note 1: The user can also do the adjustment where he wants to decrease the service tax and eCess % and the same can be done for Purchase credit memo. The program will create the GL entries and service tax entry accordingly.
Note 2: The user can also do the multiple adjustments, in this case system will give the confirmation message and the original entry will be updated with the previous adjustments. Note: User can also do the adjustments for Secondary and higher education CESS (SHE CESS)
Adjustment in case of Posted Sales Invoice.

Initially there should be some posted sales invoice with service tax calculation. Service tax Adjustment form
Click the Applied ST entry No. field to select the service tax entry. Service tax entry window opens, in which you can select the entry.
Click OK.
The transaction that is selected is posted with services % 10 and eCess % 1, now you have to make service tax % as 12 and eCess % as 2. Enter the following fields in the service tax adjustment form. Applied ST entry No: Type: Posting Date: Document No.: External Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base amount: Applied Document Type: Applied Document No.: Applied Posting Date: Applied ST Base Amount: Applied Service Tax Amount: Applied eCess Amount: Applied Service Tax %: Applied Service Tax eCess %: New Service Tax %: New Service Tax eCess %: Diff Service Tax Amount: Diff Service Tax eCess Amount: ST. Rec./Pay. Account (Interim): Bal. Account Type (Interim): Bal. Account No. (Interim): Bal. Account Type: Bal. Account No.: 54 (Selected from service tax entry) Sale 01/04/07 3433A ADJ003 10000. Adv. HXJ118910111357 10000 Invoice G00090 01/04/07 -10000 -1000 -10 10 1 12 (New %) 2 (New%) -200 -14 5925 Customer 10000 G/L Account 5923
Post the Service tax Adjustment Journal.

Navigation:
G/L Entry
Particulars Service Tax Payable Interim Customer
Type CR DR
Amount(Rs) 214 214
The program has created the GL entry with difference amount of service tax and eCess.
Service Tax Entry
The program will also create the new service tax entry with a check mark in the Adjusted field. Note 1: User can also do the adjustment where he wants to decrease the service tax and eCess % and the same can be done for Sales credit memo. The program will create the GL entries and service tax entry accordingly.
Note 2: User can also do the multiple adjustments, in this case the program will give the confirmation message and the original entry will be updated with the previous adjustments. Note 3: User can also do the adjustments for the posted transactions where services account is debited and cash or bank is credited or services account is credited and cash or bank is debited. Note 4: If the Purchase Invoice and Sale Invoice have been utilized fully or partially (taken for credit or payment of service tax) then no adjustment is allowed. Note: User can also do the adjustments for Secondary and higher education CESS (SHE CESS)
Appendix
Opening Tax Entries The existing balances in the tax records (means Central Excise and Service tax) should be posted into the Tax Records as opening balance. Central Excise The journal from which one can post the: a. RG 23 A/C Part I (opening quantity particulars). b. DSA (opening quantity particulars). c. PLA (opening balance and components like BED, e-Cess, and so on). d. RG 23A/C Part II (opening balance of CENVAT credit and the components like BED, e-Cess, and so on). e. Cenvat Credit Deferred (opening balance of CENVAT credit and the components like BED, e-Cess, and so on). All the above should be recorded location wise with relevant location details like E.C.C No. For example: X Ltd. has a opening balance of 10 units with a Cenvat Credit Rs 10000 (Components: BED Rs 9000 and e-Cess Rs1000), PLA with Rs 5000 (Components: BED Rs 4500 and e-Cess Rs 500), Finished goods stock with 10 units and Cenvat Credit Deferred pertaining to 2 units of capital assets which were Installed on 12-10-2005 is Rs 6000 (Components: BED Rs 5800 and e-Cess Rs 200). The RG 23A Part I should be updated with opening quantity of 10 units
PLA should be updated with the opening balance of Rs 5000, the components BED Rs 4500 and e-Cess Rs 500 should also be updated DSA should be updated with opening quantity of 10 units RG 23 A part II should be updated with opening balance of Rs 10000, the components BED Rs 9000 and e-Cess Rs1000 should also be updated CENVAT Credit Deferred should be updated with opening balance of Rs 6000. The components: BED Rs 5800 and e-Cess Rs 200 should also be updated along with the entry in RG 23C Part I for 2 units, the date of Installation ( 12-10-2005) should also be updated.
Service Tax The journal from which one can post the: a. Opening balance of the service tax credit carried forward with the details of the period from which the balance is carried forward and the components like service tax and e-Cess. b. Opening balance of the service tax credit with details of components like service tax and e-Cess c. Opening balance of the service tax payable with details of components like service tax and e-Cess d. Opening balance of the service tax receivable with details of components like service tax and e-Cess. All the above should be recorded location wise with relevant location details like Service Tax Registration No.
For example: X Ltd. has opening balances as: I. Service tax credit carried forward Rs 1000 pertaining to the period ending on 1-4-2006 with components: Service Tax as Rs 800 and e-Cess as 200 II. Service tax credit of the period Rs 5000 with components as Service Tax Rs 4500 and e-Cess 500. III. Service tax payable of Rs 6000 with components as Service Tax Rs 5600 and e-Cess 400 IV. Balance receivable for the service tax of Rs 1200 with components as Service Tax Rs 900 and e-Cess 300
Service tax credit carried forward should be updated with Rs 1000 with the details of the carried forward from period ending 1-4-2006, Service Tax Rs 800 and e-Cess Rs 200. Service tax credit for the period should be updated with Rs 5000 with particulars of Service Tax Rs 4500 and e-Cess 500. Service tax of for the period should be updated with Rs 6000 with particulars of Service Tax Rs 5600 and e-Cess Rs 400 Service tax receivable should be updated with Rs 1200 with particulars of Service tax Rs 900 and e-Cess Rs 300
Adjustment of Tax Entries Option for the correction / modification / rectification / adjustment in the tax records (Central excise, Sales tax & VAT, Service tax) components of the tax records against any GL account and posting into respective tax records should be available. The reason of the correction / modification / rectification / adjustment may arise due to occurrence of any internal or external event. Internal event may be wastage, scraped mistakes and external event may be change in price or changes in provisions of the respective act. There are three types of adjustments as: positive adjustment, negative adjustment, and correction adjustment. Positive Adjustment: A positive adjustment is the increase in the tax liability, increase in the indirect tax due to increase in sale price or increase in the tax rate. For example: X Ltd. has initially charged its customer Y, service tax of Rs 200 @ 20%, the rate got changed to 22% before the receipt of the amount. The original entry was: Service tax receivable A/C Dr Customer Y A/C Cr Now the adjustment entry will be: Service Tax receivable A/C Dr Customer Y A/C Cr 200 200 20 20
In this case there should be provision to post the GL accounts Service Tax Receivable A/C and Customer A/C with Rs 20 along with tax records & tax components. Negative Adjustment: A negative adjustment is the decrease in the tax liability like decrease in the indirect tax due to decrease in sale price or decrease in the tax rate.
For example: X Ltd. has initially charged its customer Y service tax of Rs 200 @ 20%, the rate got changed to 15% before the receipt of the amount. The original entry was: Service Tax Receivable A/C Dr Customer Y A/C Cr Now the adjustment entry will be: Customer Y A/C Dr Service Tax Receivable A/C Cr 200 200 50 50
In this case there should be provision to post the GL accounts Service Tax Receivable A/C and Customer A/C with Rs 50 along with tax records & tax components.
Microsoft Business Solutions Navision 4.0- Voucher Interface
Table of Contents
Overview of Functionality ....................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality............................................................................4 Reports ..............................................................................................................4 Setups- Voucher Interface ....................................................................................5 No. Series ..........................................................................................................6 Company Information........................................................................................6 Location Card ..................................................................................................11 Source Codes ...................................................................................................17 Source Code Setup ..........................................................................................17 General Journal Templates .............................................................................19 Standard Text Codes .......................................................................................21 General ledger Setup ......................................................................................21 Transactions........................................................................................................23 Cash Receipt Voucher .....................................................................................23 Viewing the Ledger Entries..........................................................................27 Cash Payment Voucher....................................................................................33 Viewing the Ledger Entries..........................................................................37 Bank Receipt Voucher .....................................................................................41 Viewing the Ledger Entries..........................................................................45 Bank Payment Voucher ...................................................................................51 Viewing the Ledger Entries..........................................................................55 Contra Voucher ...............................................................................................61 Viewing the Ledger Entries..........................................................................65 Journal Voucher ..............................................................................................71 Viewing the Ledger Entries..........................................................................75 Reports................................................................................................................80 Day Book..........................................................................................................81 Cash Book ........................................................................................................86 Bank Book........................................................................................................89 Ledgers............................................................................................................91 Voucher Register .............................................................................................94 Appendix .............................................................................................................98
Voucher Interface functionality covers the Indian Business scenario comprehensively. The functionality is a standard solution for the companies who are recording the transactions like Cash, Bank, and Journals. Following are the vouchers needed to record the transactions like Cash, Bank, and Journals for this functionality: Cash Receipt Voucher: Entries which affect the Cash accounts while receiving cash payments from Customers. Cash Payment Voucher: Entries which affect the Cash accounts while making cash payments to Vendors. Bank Receipt Voucher: Entries which affect the Bank accounts while receiving payments from Customers. Bank Payment Voucher: Entries which affect the Bank accounts while making payments to Vendors. Contra Voucher: Entries which affect the Cash and Bank Account together are termed as Contra Vouchers. For example, withdrawal from bank is one such transaction. Journal Voucher: Entries which are affecting neither the Cash Account nor the Bank account are termed as Journal Vouchers. Facility provided to enter the Cheque Number and Cheque Date in Bank Receipt, Bank Payment and Contra Vouchers.
Detailed Setup
Voucher Interface functionality contains a detailed setup, which is used to maintain the different types of vouchers and no. series location-wise.
Setup Area
No. Series
Description
Define different No. Series for different type of vouchers and for different locations. If the company is not using Location granule then map No. series with different type of voucher; also, with that voucher you can map the G/L account and Bank Account. Define No. Series with different types of vouchers and select the G/L account and Bank account with particular voucher.
Company Information
Location Card
Setup Area
Source Codes Source Code Setup
Description
On Company Initializing, Source codes will be inserted automatically. System will automatically assign Source code with different type of voucher. System will automatically creates Journal template for different type of vouchers and define the batches with Sub-Type. Define Standard Text codes which will available at the time of entering Narrations. Place a check mark in Activate Cheque No. field.
General Journal Templates Standard Text Codes General Ledger Setup
The Voucher Interface functionality covers the following points: Different types of vouchers like Cash Receipt, Cash Payment, Bank Receipt, Bank Payment, Contra and Journal. Facility for recording the transactions for different locations with different no. series. Separate screen for different voucher types. Standard text selection in Narration. Provision to enter Narration for single line or multiple lines. Provision to enter Narration for Voucher. Provision to view and print posted vouchers with narrations. Provision to view and print Day Book containing all types of transactions. Provision to view and print Cash Book and Bank Book location-wise. Provision to view and print Control accounts with sub-ledgers details. Provision to enter cheque number and cheque date in Bank Receipt, Bank Payment and Contra Voucher and also cheque number and cheque date will flow in Bank Book and Posted Vouchers.
Reports
The following reports are provided to solve the needs of the Indian Business scenarios: Posted Vouchers Day Book Cash Book Bank Book Control Accounts (Ledgers)
Voucher Register
Setups- Voucher Interface

Following are the areas where setup is required: No. Series Company Information Location Card Source Codes Source Code Setup General Journal Templates Standard text Codes General Ledger Setup
No. Series
NAVIGATION:
FINANCIAL MANAGEMENT SETUP NO. SERIES
Define No. series for each type of voucher and for each location. Further a user can select the No. series in Company Information master and Location card.
Company Information
NAVIGATION:
ADMINISTRATION APPLICATION SETUP GENERAL COMPANY INFORMATION
Click the Company menu button, select - Voucher No. Series, to define the No. series for different types of vouchers.
After selecting the option Voucher No. Series in Company menu button, a new window is opened. Here a user can define the Posting No. Series for different vouchers.
Fields Descriptions: Fields

Sub Type
Description
Select the Sub Type from drop down button. The available options are: Cash Receipt Voucher, Cash Payment Voucher, Bank Receipt Voucher, Bank Payment Voucher, Contra Voucher and Journal
Fields
Description
Voucher. Select No. Series defined in the No. Series for different Sub type from the lookup list.
Posting No. Series
After assigning a Posting No. Series for all sub-types click the Voucher menu button and select the Account option.
After selecting the Account option, a new window will open where the user can define the accounts for different sub-types.
Select the Account type and define Account no. for the selected Account type.
Fields Description: Fields Description

Select the Account type from Drop down button; the options available are: G/L Account and Bank Account. If a user wants to select the Cash account then he or she should select G/L Account and if a user wants to select a Bank account then he or she should select Bank Account. Select the Account no. from Lookup list. G/L Account No. should be selected for the Account type.
Account Type
Account No.
Select the Account No. from G/L Account List and click Ok.
In the above screen, for Account Type G/L Account Account No. 2910 (cash account) has been selected. Note 1: The program will allow selection of G/L Account as Account type if the Sub Type is Cash Receipt Voucher or Cash Payment Voucher. Note 2: The program will allow selection of the Bank Account as Account Type if the Sub Type is Bank Receipt Voucher or Bank Payment Voucher. Note 3: The program will not allow the user to select any G/L Account in case of Contra voucher and Journal voucher. In case of a Contra voucher, a user has already selected Cash and Bank accounts in Cash Receipt/Payment voucher and Bank Receipt/Payment voucher. Hence, there is no need to define it again. If a user wants to make any transaction in Imprest account through Contra Voucher then he or she has to define the same account in Cash Receipt/Payment voucher. In Journal voucher, the program will
not allow selection of any G/L Account as in Journal voucher, neither the cash nor the bank accounts reflect. If a user is not using the Location Granule then the program picks the entire related information from the Company Information master.
Location Card
NAVIGATION:
WAREHOUSE MANAGEMENT SETUP LOCATIONS
Click the Location menu button to select the Voucher No. Series so as to define the Posting No. series for different type of vouchers for Particular Locations.
After selecting Voucher No. Series option in the Location menu button a new window is opened where a user can define the Posting No. Series for different vouchers.
Fields Descriptions: Fields

Sub Type
Description
Select the Sub Type from the drop down button; the available options are: Cash Receipt Voucher, Cash Payment Voucher, Bank Receipt Voucher, Bank Payment Voucher, Contra Voucher and Journal Voucher. Select No. Series defined in the No. Series for different Sub type from the Lookup list.
Posting No. Series
After assigning No. Series for all Sub Types click the Voucher menu button and select G/L Account option:
After selecting the G/L Account option, a new window will open where the user can define G/L Account for different Sub Types.
Select the Account type and define Account no. for the selected Account type.
Fields Description: Fields

Account Type
Description
Select the Account type from the drop down button; the options available are: G/L Account and Bank Account. If a user wants to select the Cash account then he or she should select G/L Account and if a user wants to select the Bank account then he/she should select Bank Account.
Account No.
Select the Account no. from Lookup list. G/L Account No. should be selected for the Account type.
Select the Account No. from G/L Account List and click Ok.
In the above screen for Account Type Bank Account, Account No GIRO (bank account) has been selected. Note 1: The program will allow selecting the G/L Account as Account type if the Sub Type is Cash Receipt Voucher or Cash Payment Voucher. Note 2: The program will allow selecting the Bank Account as Account Type if the Sub Type is Bank Receipt Voucher or Bank Payment Voucher. Note 3: The program will not allow a user to select any G/L Account in case of Contra voucher and Journal voucher. In case of Contra voucher, a user has already selected Cash and Bank accounts in Cash Receipt/Payment Voucher and Bank Receipt/Payment Voucher so there is no need to define it again. If the user wants to make any transaction in Imprest account through Contra Voucher then he or she has to define the same account in Cash Receipt/Payment Voucher. In Journal Voucher, the program will not allow selection of any G/L Account as in the Journal voucher neither the cash nor bank accounts will reflect. If a User is not using Location Granule then the entire related information has to be mentioned in the Company Information master. A User can define different types of Vouchers for different Locations with different No. Series.
Source Codes
NAVIGATION:
FINANCIAL MANAGEMENT SETUP TRIAL CODES SOURCE CODES
On Company Initializing, Source Codes will be inserted automatically.
Fields Description: Fields

Code Description
Description
Enter the Code for different type of vouchers like: BANKPYMT. Enter the Description of the defined Code.
Source Code Setup

NAVIGATION:
FINANCIAL MANAGEMENT SETUP TRIAL CODES SOURCE CODE SETUP
System will automatically assign the source code with different type of Vouchers.
On General Tab
Attach the following fields with Source codes:
Fields
Cash Receipt Voucher Cash Payment Voucher Contra Voucher Bank Receipt Voucher Bank Payment Voucher Journal Voucher
Source Codes
Select CASHRCPT from lookup list. Select CASHPYMT from lookup list. Select CONTRAVOU from lookup list. Select BANKRCPT from lookup list. Select BANKPYMT from look list. Select JOURNALVOUC from lookup list.
General Journal Templates

NAVIGATION:
FINANCIAL MANAGEMENT SETUP
GENERAL JOURNAL TEMPLATES
The system will automatically create the Journal templates for different vouchers and also select the Sub Type for each template. In the Sub Type field the available options are: Cash Receipt Voucher Cash Payment Voucher Bank Receipt Voucher Bank Payment Voucher Contra Voucher Journal Voucher
Click the Template menu button and select Batches to create different batches for different templates.
In the above screen, a batch has been created for Bank receipt template as Bank and the Location Blue has been defined. Also Sub Type Bank Receipt Voucher has been selected. Also, the No. Series has been defined for each batch.
Note 1: User has to create different batches for different Locations. Note 2: If the Location is mapped with particular batch with a Sub Type then the
program will allow the user to enter the transactions for the defined G/L accounts in the Location card with defined No. Series. If a user does not define any Location code in the
batch, then the program will take the G/L accounts and No. Series defined in the Company Information master.
Note 3: If user has not defined any Sub Type in the template then the particular batch in
the template will run as Standard Navision Journals.
Standard Text Codes

NAVIGATION: FINANCIAL MANAGEMENT SETUP GENERAL STANDARD TEXT CODES
Fields Description: Fields Code Description Description Enter the Code Enter the Description for the defined code
General ledger Setup

NAVIGATION: FINANCIAL MANAGEMENT SETUP GENERAL LEDGER SETUP
Fields Description: Fields Activate Cheque No. Description In case check mark is true then following will happen: - Document No will not be replaced by Cheque No while using Computer or Manual Cheque option. Cheque No & Cheque date will flow in Bank ledger Entry in case of Bank Receipt, Bank Payment and Contra Voucher. Cheque No. and Cheque Date will also flow in Check Ledger Entry in case of Manual or Computer Cheque is used.
In case check mark is false then following will happen, it will work like default navision.
Transactions
Cash Receipt Voucher

NAVIGATION: FINANCIAL MANAGEMENT CASH MANAGEMENT CASH RECEIPT VOUCHER
Select the batch in which the voucher should be posted. Here select Cash to post the transaction. In the above screen, the batch is attached with the Location Blue.
To make the transactions in Cash Receipt Voucher as received Cash payment from the Customer, fill the fields in Cash receipt Voucher as follows:
First Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Debit Amount: 01/04/06 Payment UCR/0010 G/L Account 2910 Cash 10000
Second Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Credit Amount: Narration 01/04/06 Payment UCR/0010 Customer 10000 The Cannon Group PLC 10000
Click Narration menu button to enter the Line Narration or Voucher Narration.
Click the Line Narration option to enter the narration for particular line. A new window will open.
On the header part, the program will show the Document No. On Line level enter the narration for the selected line. User can also select the Standard text from lookup list available on the line level.
Click the Voucher Narration option to enter the narration for Voucher. A new window will open.
On the header part, the program will show the Document No. for which the narration has been entered. On line level the narration can be entered for particular voucher. User can also select the Standard text from lookup list available on the line level.
Post the Journal.
NAVIGATION: FINANCIAL MANAGEMENT GENERAL LEDGER HISTORY REGISTERS

The user can view the posted transaction - G/L Entry.
The program will create the following entries: For the document number: CASHRCPT014
Particulars Cash To, Customer
Type DR CR
Amount(Rs) 10000 10000
User can view the Line Narration and Voucher Narration entered at the time of posting of Cash receipt voucher.
Click the Entry menu button and select Narration option to view the voucher narration.
Click the Entry menu button and select Line Narration option to view the Line narration.
A user can also view the Narration in Customer Ledger entry. User can take the print of the poster voucher by clicking Print voucher option in Entry menu button.
In Options tab user can view the voucher with line narration by clicking the option Print Line narration
Program will by default show the filter options. Click Preview menu button to view the voucher or click Print menu button to print the voucher.
User can also print the voucher by click Post and Print option in posting menu button at the time of posting the voucher.
Note 1: The system allows posting of the Cash Receipt Voucher if the Debit amount contains those Cash accounts which are mapped with Location or Company Information master. Note 2: The system will not allow posting of the voucher if a user has selected Bank Account either in Debit side or in Credit side. A user can post the transaction when he or she receives amount in terms of Cash. Cash account should always be debited when using Cash Receipt voucher. Cash receipt Voucher can also be entered from the Receivables Section. A user can enter multiple vouchers in Cash Receipt Voucher with different posting dates. A user can also view the error texts from Test report before posting the voucher. A user can post any type of cash receipt transaction through Cash Receipt Voucher.
Cash Payment Voucher

NAVIGATION: FINANCIAL MANAGEMENT CASH MANAGEMENT CASH PAYMENT VOUCHER
Select the batch in which you want to post the voucher. Here select the batch as Cash to post the transaction. In the above screen, you can view the batch attached with Location Blue.
To make the transactions in Cash Payment Voucher as making Cash payment to the Vendor, fill the fields in Cash Payment Voucher as follows:
First Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Debit Amount: 01/04/06 Payment UCP/0029 Vendor 10000 Delhi Postmaster 10000
Second Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Credit Amount: Narration 01/04/06 Payment UCP/0029 G/L Account 2910 Cash 10000
Click Narration menu button to enter the Line Narration or Voucher Narration.
Click Line Narration option to enter the narration for particular line. A new window will open.
On the header part, the program will show the Document No. On the Line level, the narration can be entered for the selected lines. A user can also select the Standard text from lookup list available on the line level.
Click Voucher Narration option to enter the narration for the Voucher. A new window will open.
On the header part, the program will show the Document No. for which narration can be entered. On line level enter the narration for the particular voucher. A user can also select the Standard text from lookup list available on the line level.
Post the Journal.

The user can view the posted transaction - G/L Entry.
The program will create the following entries: For the document number: CASHPYMT032 Particulars Vendor To, Cash Type DR CR Amount(Rs) 10000 10000
A user can view the Line Narration and Voucher Narration entered at the time of posting Cash Payment voucher.
Click the Entry menu button and select Narration option to view the voucher narration.
Click the Entry menu button and select the Line Narration option to view the Line narration.
A user can also view the Narration in the Vendor Ledger entry. User can take the print of the poster voucher by clicking Print voucher option in Entry menu button.
Note 1: The program will allow posting of the Cash Payment Voucher if the Credit amount contains those Cash accounts which are mapped with Location or Company Information master. Note 2: The program will not allow posting of the voucher if user has selected Bank Account either in Debit side or in Credit side. Users can post the transaction when he or she pays amount in terms of Cash. Cash account should always be Credit while using cash payment voucher. Cash Payment Voucher can also be entered from the payables Section. A user can enter multiple vouchers in Cash Payment Voucher with different posting dates. A user can also view the error texts from Test report before posting the voucher. A user can post any type of Cash Payment transaction through the Cash Payment Voucher.
Bank Receipt Voucher

NAVIGATION: FINANCIAL MANAGEMENT CASH MANAGEMENT BANK RECEIPT VOUCHER
Select the batch in which the voucher has to be posted. Select the Batch to post the transaction. In the above screen, see that batch as BANK is attached with the Location Blue.
To make the transactions in bank Receipt Voucher as receiving payment from the Customer by Cheque, fill the fields in bank receipt Voucher as follows:
First Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Cheque No.: Cheque Date: Debit Amount: 01/04/06 Payment UBR/0001 Bank Account GIRO Giro Bank 88888 01/04/06 20000
Second Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Cheque No.: Cheque Date: Credit Amount: 01/04/06 Payment UBR/0001 Customer 10000 The Cannon Group PLC. 88888 01/04/06 20000
Narration
Click the Narration menu button to enter the Line Narration or Voucher Narration. Click the Line Narration option to enter the narration for particular line. A new window will open.
On the header part, the program will show the Document No. On Line level enter the narration for the selected line. A user can also select the Standard text from lookup list available on the line level
Click Voucher Narration option to enter the narration for Voucher. A new window will open.
On the header part, the program system will show the Document No. for which the narration can be entered. On line level enter the narration for particular voucher. A user can also select the Standard text from lookup list available on the line level.
Post the Journal.

A user can view the posted transaction G/L Entry.
The program will create the following entries: For the document number: BANKRCPT002 Particulars Bank To, Customer Type DR CR Amount(Rs) 20000 20000
A user can view the Line Narration and Voucher Narration entered at the time of posting Bank receipt voucher.
Click the Entry menu button and select the Narration option to view the voucher narration.
Click the Entry menu button and select the Line Narration option to view the Line narration.
A user can also view the Narration for Customer ledger entry. User can take the print of the poster voucher by clicking Print voucher option in Entry menu button.
Note 1: The program will allow posting the Bank Receipt Voucher if the Debit amount contains those Bank accounts which are mapped with Location or Company Information master. Note 2: The program will not allow posting the voucher if user has selected Cash Account either in Debit side or in Credit side. A user can post the transaction when he/she receives amount in terms of Cheque. Bank account should always be Debit while using bank receipt voucher. Bank Receipt Voucher can also be entered from receivables Section. A user can enter multiple vouchers in Bank Receipt Voucher with different posting dates. A user can also view the error texts from Test report before posting the voucher. A user can post any kind of Bank Receipt transaction through Bank Receipt Voucher. Cheque number and date will flow in Bank ledger entry after posting the voucher if Activate Cheque No. field is true in General Ledger Setup.
Bank Payment Voucher

NAVIGATION: FINANCIAL MANAGEMENT CASH MANAGEMENT BANK PAYMENT VOUCHER
Select the batch in which the voucher has to be posted. Select the Batch to post the transaction. In the above screen, see that batch as BANK is attached with Location Blue.
To make the transactions in Bank Payment Voucher as making payment to the Vendor by Cheque, fill the fields in bank payment Voucher as follows:
First Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Cheque No.: Cheque Date: Debit Amount: 01/04/06 Payment UBP/0001 Vendor 10000 Delhi post Master 55555 01/04/06 25000
Second Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Cheque No.: Cheque Date: Credit Amount: 01/04/06 Payment UBP/0001 Bank Account GIRO Giro Bank 55555 01/04/06 25000
Narration
Click the Narration menu button to enter the Line Narration or Voucher Narration. Click the Line Narration option to enter the narration for particular line. A new window will open.
On the header part, the program will show the Document No. On Line level enter the narration for the selected line. A user can also select the Standard text from lookup list available on the line level
Click the Voucher Narration option to enter the narration for Voucher. A new window will open.
On the header part, the program will show the Document No. for which the narration can be entered. On line level enter the narration for the particular voucher. A user can also select the Standard text from lookup list available on the line level.
Post the Journal.

User can view the posted transaction- G/L Entry
The program will create the following entries: For the document number: BANKPYMT001 Particulars Vendor To, Bank Type Amount(Rs) DR 25000 CR 25000
User can view the Line Narration and Voucher Narration entered at the time of posting Bank Payment Voucher.
Click Entry menu button and select Narration menu item to view the voucher narration.
Click Entry menu button and select Line Narration menu item to view the line narration.
User can also view the narration for the Vendor Ledger entry. User can take the print of the poster voucher by clicking Print voucher option in Entry menu button.
Note 1: The program allows the posting of the Bank Payment Voucher if the Credit amount contains those Bank accounts which are mapped with Location or Company Information master. Note 2: The program allows the posting of the voucher if user selects Cash Account either in debit side or in credit side. User can post the transaction if the user pays amount in terms of cheque. Bank account is always Credit while using bank payment voucher. Bank Payment Voucher can also be entered from Payables section. User can enter multiple vouchers with different posting dates in Bank Payment Voucher. User can also view the error texts from Test report before posting the voucher. User can post any type of bank payment transaction through Bank Payment Voucher.
Cheque number and date will flow in Bank ledger entry after posting the voucher if Activate Cheque No. field is true in General Ledger Setup and Bank Payment Type filed in Bank Payment Voucher should be Blank. In case Bank Payment type is Manual Check and Computer check then user is advised to post the transaction in one line while taking Bal. Account as it helps in voiding the check ledger entry. If the Activate Cheque No. is true in General Ledger Setup then while making payment through Bank Payment voucher system will flow the Cheque number and date in Bank Ledger entry and Check Ledger entry respectively.
Contra Voucher
NAVIGATION: FINANCIAL MANAGEMENT CASH MANAGEMENT CONTRA VOUCHER
Select the batch in which you want to post the voucher. In the above screen batch as CONTRA is selected to post the transaction. You can see that batch is attached with location Blue.
To make the transactions in Contra Voucher as Withdrawing cash from bank, fill the fields in Contra Voucher as follows:
First Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Cheque No.: Cheque Date: Debit Amount: 01/04/06 Payment UC/0001 G/L Account 2910 Cash 03333 01/04/06 10000
Second Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Cheque No.: Cheque Date: Credit Amount: 01/04/06 Payment UC/0001 Bank Account GIRO Giro Bank 03333 01/04/06 10000
Narration
Click Narration menu button to select either the Line Narration or Voucher Narration menu item. Click Line Narration menu item to enter narration for the particular line. Now Line Narration window opens.
On the header part, the program shows the document number On line level user can enter the narration for the selected line. User can also select the standard text from the lookup list.
Click Voucher Narration menu item to enter the narration for voucher. Now Voucher Narration window opens.
On the header part, the program shows the document number for which user can enter the narration.
On line level, user can enter narration for the particular voucher. User can also select the standard text from the lookup list.
Post the Journal

The program creates the following entries for the document number: CT000155 Particulars Cash To, Bank Type Amount(Rs) DR 10000 CR 10000
User can also view the narration for the Bank Ledger Entry. User can take the print of the poster voucher by clicking Print voucher option in Entry menu button.
Note 1: The program allows the posting of Contra Voucher if the credit amount and debit amount contain those Bank /Cash accounts which are mapped with Location / Company Information Master against Cash Book or Bank Book. Note 2: The program does not allows the posting of the voucher if user selects any other account apart from Cash or Bank Account either in Debit side or in Credit side. User can post the transaction when the user wants to withdraw cash from bank, deposit cash in bank, transfer amount from one cash account to another cash account within the location, transfer amount from one bank account to another bank account within the location. The program posts the contra voucher only if the cash and bank accounts are mapped with Cash Receipt, Cash Payment, Bank Receipt, Bank Payment Voucher. User can enter multiple vouchers with different posting dates in Contra Voucher. User can also view the error texts from Test report before posting the voucher. Cheque number and date will flow in Bank ledger entry after posting the voucher if Activate Cheque No. field is true in General Ledger Setup and Bank Payment Type filed in Contra Voucher should be Blank. In case Bank Payment type is Manual Check and Computer check then user is advised to post the transaction in one line while taking Bal. Account as it helps in voiding the check ledger entry. If the Activate Cheque No. is true in General Ledger Setup then while making payment through Contra voucher system will flow the Cheque number and date in Bank Ledger entry and Check Ledger entry respectively. Note: If user wants to transfer Cash from one location to another location then he/she should have creates two different Cash receipt/payment voucher in the following way: Suppose from Location Blue you want to transfer Rs. 10000 cash to location Green Cash Payment Voucher (Blue Location) Particulars Location Green To, Cash Type Amount(Rs) DR 10000 CR 10000
Cash Receipt Voucher (Green Location)
Particulars Cash To, Location Blue
Type Amount(Rs) DR 10000 CR 10000
Journal Voucher
NAVIGATION: FINANCIAL MANAGEMENT GENERAL LEDGER JOURNAL VOUCHER
Select the batch in which you want to post the voucher. In the above screen batch as: JOURNAL is selected to post the transaction. In the above screen you can see that batch is attached with location Blue.
To make the transactions in Journal Voucher as booking expense and crediting vendor, fill the fields in Journal Voucher as follows:
First Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Debit Amount: 01/04/06 Invoice UJ/0001 G/L Account 8410 Advertisement 50000
Second Line
Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Credit Amount: 01/04/06 Invoice UJ/0001 Vendor 10000 Delhi Postmaster 50000
Narration
Click Narration menu button to select either the Line Narration or Voucher Narration. Click Line Narration menu item to enter the narration for particular line. Now the Line Narration window opens.
On the header part, the program shows the document number On Line level user can enter the narration for the selected line. User can also select the standard text from the lookup list.
User can click Voucher Narration menu item to enter the narration for voucher. After that Voucher Narration window opens.
On the header part, the program will show the document number for which user can enter the narration. On line level, user can enter the narration for particular voucher. User can also select the standard text from the lookup list.
Post the Journal

The program creates the following entries for the document number: JOURNAL0006 Particulars Advertisement To, Vendor Type Amount(Rs) DR 50000 CR 50000
User can also view the narration for the Customer / Vendor Ledger Entry. User can take the print of the poster voucher by clicking Print voucher option in Entry menu button.
Note 1: The program allows the posting of the Journal Voucher if the credit amount and debit amount do not contain those Bank /Cash accounts which are mapped with Location or Company Information Master against Cash Book or Bank Book. Note 2: The program does not allow the posting of the voucher if user has selected Cash or Bank either in debit side or in credit side. User can post the transactions in Journal Voucher when the user wants to make invoice for vendor/customer, any provisional entry, booking expense, calculating TDS/TCS/Service Tax, and so on. User can enter multiple vouchers in Journal Voucher with different posting dates. User can also view the error texts from Test report before posting the voucher. User can post any type of journal transaction through Journal Voucher.
Reports
Day Book
NAVIGATION: FINANCIAL MANAGEMENT GENERAL LEDGER REPORTS ENTRIES DAY BOOK
User can generate the Day Book for all types of vouchers for a specific date.
G/L Entry tab Fields Description: Fields

Posting Date Document No. Global Dimension 1 Code
Description
Enter the posting date for which Day Book to be printed. Enter the document number for which Day Book to be printed. Enter the Global Dimension 1 Code for which transactions have been posted and Day Book to be generated. Enter the Global Dimension 2 Code for which transactions have been posted and Day Book to be generated.
Global Dimension 2 Code

Line Narration Voucher Narration
Description
Place a check mark in this field if Line Narration is to be printed. Place a check mark in this field if Voucher Narration is to be printed.
Click Preview button if user wants to view the Day Book. User can click Print button if user wants to take printout.
Cash Book
NAVIGATION: FINANCIAL MANAGEMENT CASH MANAGEMENT REPORTS CASH BOOK
User can generate the Cash Book according to the locations for all types of cash transactions.
G/L Account tab Fields Description: Fields

No.
Description
Enter the cash account number. The program generates the Cash Book only for those cash accounts which are mapped with Cash Receipt/Payment Book in the Location Card /Company Information. Enter the date for which Cash Book to be generated. Enter the Global Dimension 1 Code for which transactions have been posted and Cash Book to be generated.
Date Filter Global Dimension 1 Code
Fields
Description
Enter the Global Dimension 2 Code for which transactions have been posted and Cash Book to be generated.
Option Tab Fields Description: Fields

Print Details
Description
Place a check mark in this field if details of cash voucher in Cash Book are to be printed. Place a check mark in this field if Line Narration is to be printed Place a check mark in this field if Voucher Narration is to be printed. Select the location code from the lookup list for which Cash Book is to be generated.
Print Line Narration Print Voucher Narration Location Code
User has to click Preview button if user wants to view the Cash Book. User has to click Print button if user wants to take the printout.
Bank Book
NAVIGATION: FINANCIAL MANAGEMENT CASH MANAGEMENT REPORTS BANK BOOK
Bank Account Tab Fields Description: Fields

No.
Description
Enter the bank account number. The program generates the Bank Book only for those bank accounts which are mapped with Bank Receipt/Payment book in the Location Card/ Company Information. Enter the date for which Bank Book is to be generated. Enter the Global Dimension 1 Code for which transactions have been posted and Bank Book is to be generated. Enter the Global Dimension 2 Code for which transactions have been posted and Bank Book is to be generated.
Date Filter Global Dimension 1 Code
Option tab Fields Description: Fields

Print Details
Description
Place a check mark in this field if details of bank vouchers in Bank Book are to be printed. Place a check mark in this field if Line Narration is to be printed. Place a check mark in this field if Voucher Narration is to be printed. Select the location code from the lookup list for which Bank Book is to be generated.
Print Line Narration Print Voucher Narration Location Code
User has to click Preview button if user wants to view the Bank Book. User has to click Print button if user wants to take the printout.
Ledgers
NAVIGATION: FINANCIAL MANAGEMENT GENERAL LEDGER REPORTS ENTREIS LEDGERS
User can generate the Control accounts with sub-ledger details.
G/L Account Tab Fields Description: Fields

No. Date Filter Global Dimension 1 Code
Description
Enter the G/L account number for which you want to print the report Enter the Date for which you want to generate Ledgers. Enter the Global Dimension 1 Code for which you have posted the transactions and want to generate Ledgers. Enter the Global Dimension 1 Code for which you have posted the transactions and want to generate Ledgers.
Options Tab Fields Description: Fields

Print Details Print Line Narration Print Voucher Narration Location Code
Description
Place a check mark if you want to print details of vouchers in Ledgers Place a check mark if you want to print Line Narration. Place a check mark if you want to print Voucher Narration. Select the Location Code from Lookup list for which you want to generate Ledgers
Click Preview button if you want to view the Ledger or Click Print button if you want to take printout.
Voucher Register
NAVIGATION:
FINANCIAL MANAGEMENT GENERAL LEDGER REPORTS ENTREIS VOUCHER

REGISTER
User can generate the Vouchers for Complete register.
G/L Register Tab Fields Description: Fields

No.
Description
Enter the Register number from lookup list for which you want to print the vouchers.
Options Tab Fields Description: Fields

Print Line Narration.
Description
Place a check mark if you want to print the voucher with line narration.
Click Preview button if you want to view the Voucher Register or Click Print button if you want to take printout.
Appendix
Cash Receipt Voucher
Rs. 10000 in cash is received from customer Lotus Powers Ltd. Post the transaction in Cash Receipt Voucher.
Solution:
Cash account should be debited and Customer account should be credited in the following way: Particulars Type Amount(Rs) Cash DR 10000 To, Lotus Powers Ltd CR 10000
Cash Payment Voucher

Rs. 5000 paid to vendor Shire Enterprises in cash. Post the transaction in Cash Payment Voucher.
Solution:
Cash account should be credited and vendor account should be debited in the following way: Particulars Shire Enterprises To, Cash Type Amount(Rs) DR 5000 CR 5000
Bank Receipt Voucher

A cheque of Rs. 50000 is received from customer Lotus Powers Ltd.. Post the transaction in Bank Receipt Voucher.
Solution:
Bank account should be debited and customer account should be credited in the following way:
Particulars Type Amount(Rs) Bank DR 50000 To, Lotus Powers Ltd CR 50000
Bank Payment Voucher

Cheque for Rs. 50000 issued to vendor Shire Enterprises. Post the transaction in Bank Payment Voucher.
Solution:
Vendor account should be debited and bank account should be credited in the following way: Particulars Shire Enterprises To, Bank Type Amount(Rs) DR 50000 CR 50000
Contra Voucher
Rs. 50000 in cash is deposited in bank account City Bank. Post the transaction in Contra Voucher.
Solution:
Bank account should be debited and cash account should be credited in the following way: Particulars City Bank To, Cash Type Amount(Rs) DR 50000 CR 50000
Journal Voucher
A bill has been received from vendor Tours and Travels Ltd against traveling expenses for Rs. 15000. Post the transaction in Journal Voucher.
Solution:
Traveling charges should be debited and vendor account should be credited in the following way: Particulars Type Amount(Rs) Traveling charges DR 15000 To, Tours and Travels Ltd. CR 15000
Microsoft Business Solutions Navision 4.0 Workflow Mail Administrator
Table of Contents
Workflow Mail Administrator .................................................................................3 Company Information............................................................................................3 Mail Administrator: ................................................................................................4
Workflow Mail Administrator

Workflow Mail Administrator (Workflow Manager) can monitor the user tasks which have been popped up for authorization. Workflow Manager can also view tasks which have been approved or rejected or are in the process of authorization. Workflow Manager has to be defined in Company information card.
Company Information
Choose the Workflow Manager and Check the Mail Required Field in Workflow Tab. You have to Login into the System using this User Name defined as Workflow Manager.
Mail Administrator:
Navigation: Administration IT Administration Workflow Mail Administrator
This form shows the User tasks. The Workflow Manager needs to Start the Service for the Workflow and Monitor the Tasks. The Notification for the Pending Tasks would be sent to the relevant Level defined in the Workflow Template Setup through mail or user tasks.
Microsoft Business Solutions Navision 4.0 Unrealized Profit
Table of Contents
Inventory Setup.....................................................................................................3 Item Card: .............................................................................................................3 Transaction ...........................................................................................................4 Transfer Order...................................................................................................4 Viewing the Posted Transaction (Transfer Shipments)..................................5 Viewing the Posted Transaction (Transfer Receipts).....................................8
Inventory Setup
Navigation: Financial Management Setup Posting Setup Inventory Setup
Filed Description Field

Unrealized Profit Account
Description
Choose the GL account which gets debited or credited if the transfer price in the transfer order line is different from unit cost of the item to be transferred.
Item Card:
Navigation: Purchase Planning Items
In the Item card of item no 1100, the unit cost is 129.671. If the transfer price is more or less than the unit cost then the amount will be debited or credited to Unrealized Profit Account.
Transaction
Transfer Order
In the above window press F3 to insert new document and enter the following information in Transfer Order header:
No. Transfer-from Code Transfer-to Code Posting Date In-Transit Code
1149
BLUE
GREEN 28/06/07 OUT. LOG.
Enter the following details in the transfer order line: Item No. Quantity Transfer Price Amount 1100 10 1000 (In the Item card of item no. 1100 Unit cost is 129.671) 10000
Post the document as Ship and Receive.
G/L Entry
The above window displays the affected G/L Accounts as below: Description Finished Goods Inventory Adjmt., Retail Finished Goods Inventory Adjmt., Retail Finished Goods Unrealized Profit Account Dr/Cr Dr Cr Cr Dr Dr Cr Amount 1296.71 1296.71 1296.71 1296.71 8703.29 8703.29
Program has credited Unrealized Profit account for amount 8703.29. In the item card Unit Cost is 129.671 and on transfer order line we have defined 1000 in transfer price field. Quantity was 10 and Amount was 10000. Difference of 8703.29 (10000-1296.71) has been credited to Unrealized Profit Account.

G/L Entry
The above window displays the affected G/L Accounts as below: Description Finished Goods Inventory Adjmt., Retail Finished Goods Inventory Adjmt., Retail Finished Goods Unrealized Profit Account Dr/Cr Dr Cr Cr Dr Cr Dr Amount 1296.71 1296.71 1296.71 1296.71 8703.29 8703.29
Program has debited Unrealized Profit account for amount 8703.29. Note: Similarly if in the transfer order, transfer price is less than the unit cost then program will debit the unrealized profit account with the difference amount in the shipping location and credit the unrealized profit account with the difference amount in the receiving location.
Microsoft Business Solutions Navision 4.0- Excise Loading on Inventory
Table of Contents
Overview...............................................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................3 Setup Required .....................................................................................................3 Excise Setup: ....................................................................................................3 E.C.C. Nos. .......................................................................................................4 Excise No. Series: .............................................................................................4 Claim Setoff:......................................................................................................6 Structure:...........................................................................................................7 Transactions .........................................................................................................7 Excise Amount Loading on Inventory in case Item is Non CENVATABLE. .......7 Viewing the Posted Transaction ....................................................................9 Excise Amount Loading on Inventory in case Duties Paid on Goods are not available for the CENVAT Credit. ....................................................................11 Viewing the Posted Transaction ..................................................................13 Excise Amount Loading on Inventory where Item is CENVATABLE ...............18 Viewing the Posted Transaction ..................................................................20 Updating of RG register in case of Excise Exempted Goods ..........................22 Viewing the Posted Transaction ..................................................................23 Excise Loading on Inventory when Transferring Goods from CENVATABLE Location to Non CENVATABLE Location ........................................................26 Viewing the Posted Transaction (Transfer Shipments)................................27 Viewing the Posted Transaction (Transfer Receipts)...................................30 Excise Loading on Inventory when Transferring Goods from CENVATABLE Location to CENVATABLE Location................................................................32 Viewing the Posted Transaction (Transfer Shipments)................................33 Viewing the Posted Transaction (Transfer Receipts)...................................36 Transfer of Exempted Goods from CENVATABLE Location to CENVATABLE Location...........................................................................................................37 Viewing the Posted Transaction (Transfer Shipments)................................39 Viewing the Posted Transaction (Transfer Receipts)...................................42 Excise, VAT and Charges loading on inventory using Expected Cost through Purchase Order. ..............................................................................................45 Appendix.............................................................................................................45
Overview
The Excise Loading on Inventory functionality enables you to load excise duties on the inventory. The excise duties are not allowed as credit under CENVAT Credit Rules.
Detailed Setup
Following setup is required to enable the Excise Loading on Inventory functionality.
Setup Area Excise Setup Structure
Description You should setup the excise posting setup and other excise setup. Define structure to calculate the excise amount.
Following comprehensive functionalities are covered under Excise Loading on Inventory: Identify at the time of purchase that the CENVAT credit is not available and load the same on the purchases. Identify at the time of transfer from manufacturing location to manufacturing location that the CENVAT credit is not available and load the same on the inventory. Update the RG 23 A/C Part I registers in case of excise exempted goods.
Setup Required
Following setups are required for Excise Loading on Inventory functionality: Excise Setup E.C.C Nos. Excise No. Series Claim Setoff Structure
Excise Setup:
Navigation:
Financial Management Setup Excise Posting Setup
In combination of Excise Business Posting Group and Excise Product Posting Group enter the percentages and formula for the calculation of excise amount and provide the G/L Account code to affect the financial part.
E.C.C. Nos.
Navigation: General Ledger Setup Excise E.C.C. Nos.
In case more than one location exist, then you can define location-wise ECC number, otherwise one ECC number can be defined and mapped with company in the Company Information setup.
Excise No. Series:

Navigation:
Financial Management Setup Excise Excise No. Series
Fill in the fields according to these guidelines: Field Type E.C.C. No. Description No. Series Description Select the RG register type from the dropdown list. Select the relevant ECC number from the list. Enter a description for the reference. Select the number series that you have created.
Claim Setoff:
Navigation: Financial Management Setup Excise Claim Setoff
The Claim Setoff window allows you to define the eligibility criteria between excise duty components to setoff the liability against the available excise credit as per excise duty components. The column headings are denoting the excise credit components and rows are denoting excise liability components. The available credit of a particular duty component can be used when the excise duty component are defined in the rows under a particular column heading.
Structure:
Navigation: Financial Management Setup Structure Structure
Define a structure that shows the excise.
Transactions
Excise Amount Loading on Inventory in case Item is Non CENVATABLE.
Purchase Order
To calculate excise, fill the fields in the Purchase Order form as follows: On the Header: Buy from Vendor No: Structure: On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: Calculate Structure Press F9 to view the excise amount Post the Order. Item 70000 (In the Item Card, Excise Accounting Type should be Without CENVAT) Side Panel 10 1000 10000 10000 New Excise

G/L Entry
The program creates the following entry: Particulars Purchase Vendor Raw Material Direct Cost Applied, Raw mat. Type DR CR DR CR Amount(Rs) 11630 11630 11630 11630
The program will load the excise amount on inventory and will not create any excise entry. The program will calculate the excise amount according to the posting setup, but after posting the purchase order, the program will load the excise amount on inventory and will not create any RG 23 A/C Part I and II entry. Note 1: You can also post the transaction from the Purchase Invoice. Note 2: You can post the same transaction for the capital Item.
Excise Amount Loading on Inventory in case Duties Paid on Goods are not available for the CENVAT Credit.
Handel led through Charge (Item) Purchase Order
To calculate excise, fill the fields in the Purchase Order form as follows: On the Header: Buy from Vendor No: Structure: 10000 New Excise
On the First Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: On the Second Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: Calculate Structure Press F9 to view the excise amount Suggest item Charge Assignment for Charge (Item) with receipt line in Item charge Assignment window. Post the Order. Charge (Item) Other Duty (Excise Product posting group should be nil) Other Duty 1 100 100 Item 1000 (In the Item Card, Excise Accounting Type should be With CENVAT) Bicycle 10 1000 10000

Navigation:
Purchases History Posted Invoice
G/L Entry
The program creates the following entry: Particulars Purchase Purchase Type DR DR Amount(Rs) 100 10000 1630 11730 10000 10000 100 100
CENVAT Cr. DR Receivable Vendor CR Finished Goods Direct Cost Applied, Retail Finished Goods Direct Cost Applied, Retail DR CR DR CR
In this case, the program will load the charge (item) amount on inventory. On the purchase line we have mentioned Rs. 100 as direct cost and the quantity was 1, and there was no excise product posting group attached with charge (item). After posting the program has load the amount on inventory. The program will debit the CENVAT Cr Receivable account for cenvatable item (first line in the Purchase Order) and will create the RG 23 A Part I and II entries.
RG 23 Part II Entry
Note 1: You can also post the transaction from the Purchase Invoice. Note 2: You can post the same transaction for the capital Item. Note 3: This case can also be handled though structure charges. You need to select charges in the Structure, place a check mark in the Loading on Inventory field, and mention the account number; where charges amount has to be debited.
Excise Amount CENVATABLE

Purchase Order
Loading
on
Inventory
where
Item
is
Field Description Field Excise Loading on Inventory Description Place a check mark in this field if you want to load the excise amount on inventory. The program will not crate any RG 23 A/C Part I and II entries if a check mark has been placed in this field on the purchase line.
To calculate excise, fill the fields in the Purchase Order form as follows: On the Header: Buy from Vendor No: Structure: On the First Line: Type: No.: Item 1000 (In the Item Card, Excise Accounting Type should be With CENVAT) Description: Bicycle Quantity: 10 Direct Unit Cost: 1000 Line Amount: 10000 Excise Loading on Inventory True Calculate Structure Press F9 to view the excise amount Post the Order. 10000 New Excise

G/L Entry
The program creates the following entry: Particulars Purchase Vendor Finished Goods Direct Cost Applied, Retail Type DR CR DR CR Amount(Rs) 11630 11630 11630 11630
The program will load the excise amount on inventory and will not create any excise entry. The program will calculate the excise amount according to the posting setup. The program will load the excise amount on inventory after posting the purchase order and will not create any RG 23 A/C Part I and II entry. Note 1: You can also post the transaction from the Purchase Invoice. Note 2: You can post the same transaction for the capital Item. Note 3: The Excise Accounting Type should be With CENVAT for Type item. Note 4: The Excise Loading on Inventory field can also be used while posting the Purchase Return Order/Credit Memo.
Updating of RG register in case of Excise Exempted Goods

In this case, the program will not create any RG 23 A/C Part II entry, but will create RG 23 A/C Part I entry. Purchase Order
To calculate excise, fill the fields in the Purchase Order form as follows: On the Header: Buy from Vendor No: Structure: On the First Line: Type: No.: Description: Quantity: Direct Unit Cost: Item 1100 (In the Item Card, Excise Accounting Type should be With CENVAT) Bicycle 10 1000 10000 New Excise
Line Amount: Calculate Structure
10000
Press F9 to view the excise amount The program will calculate the excise amount as zero, because in the posting setup; percentages of excise duty components are defined as Zero. Post the Order.

G/L Entry
The program creates the following entry: Particulars Purchase Vendor Type DR CR Amount(Rs) 10000 10000
In this case program will not create any excise entry. But program will create RG 23 A/C Part I entry.
RG 23 A Part I
Note 1: You can also post the transaction from the Purchase Invoice/Return Order/Credit Memo. Note 2: You can post the same transaction for the capital Item. Note 3: The Excise Accounting Type should be With CENVAT for Type item. Note 4: The Excise Duty Components percentages should be zero in the Posting setup.
Excise Loading on Inventory when Transferring Goods from CENVATABLE Location to Non CENVATABLE Location
Transfer Order
To calculate excise, fill the fields in the Transfer Order window as follows: On the Header: No: Transfer from Code: Transfer to Code: In-transit Code: Structure: On the Line: Item No.: Description: Quantity: Transfer Price: Amount: Calculate Structure 1057 Blue (Cenvatable location) Red (Non Cenvatable location) dont mention ECC No. in the Location card. Out. Log New Excise
1000 Bicycle 10 1000 10000
Post the Transfer Order as Ship and Receive.

G/L Entry
The program will credit the Excise Payable account with the excise amount.
RG 23 A Part I

G/L Entry
The program will load the excise amount on inventory in receiving location. In receiving location the program will not create any RG 23 A/C Part I and II entries. Note: Please do not mention the ECC number in the receiving location if you want to transfer the goods from CENVATABLE location to Non CENVATABLE location.
Excise Loading on Inventory when Transferring Goods from CENVATABLE Location to CENVATABLE Location
Fill in the fields according to these guidelines: Field Excise Loading on Inventory Description Place a check mark in this field if you want to load the excise amount on inventory in the receiving location. The program will not crate any RG 23 A/C Part I and II entries in the receiving location if a check mark has been placed in this field on the transfer order line.
To calculate excise, fill the fields in the Transfer Order window as follows: On the Header: No: Transfer from Code: 1058 Blue (CENVATABLE location)
Transfer to Code: In-transit Code: Structure: On the Line: Item No.: Description: Quantity: Transfer Price: Amount: Excise Loading on Inventory Calculate Structure
Green (CENVATABLE location) Out. Log New Excise
1000 Bicycle 10 1000 10000 True
Post the Transfer order as Ship and Receive.

G/L Entry
The program will credit the Excise Payable account with excise amount.
RG 23 A Part I
The program will create RG 23 A Part I entry with the value in the Quantity Sold field.

G/L Entry
The Program will load the excise amount on inventory in receiving location. In receiving location the program will not create any RG 23 A/C part I and II entries.
Transfer of Exempted Goods from CENVATABLE Location to CENVATABLE Location

To calculate excise, fill the fields in the Transfer Order window as follows:
On the Header:
No: Transfer from Code: Transfer to Code: In-transit Code: Structure: On the Line: Item No.: Description: Quantity: Transfer Price: Amount: Calculate Structure The program will calculate the excise amount as zero, because in the posting setup; percentages of excise duty components are defined as Zero. Post the Transfer order Ship and Receive. 1059 Blue (CENVATABLE location) Green (CENVATABLE location) Out. Log New Excise
1100 Front Wheel 10 1000 10000

G/L Entry
The program will not create any G/L entry related to the excise amount.
RG 23 A Part I

G/L Entry
The program will not create entry related to the excise amount.
RG 23 A Part I
Note: You can post the same transaction for the capital Item.
Excise, VAT and Charges loading on inventory using Expected Cost through Purchase Order
Purchase Order
To calculate excise, VAT and Charges, fill the fields in the Purchase Order form as follows: On the Header: Buy from Vendor No: Structure: 10000 Structure (In Structure, excise will be calculated on base value, VAT will be calculated on Base value + Excise Amount and charges Amount is 100 fixed value with loading on inventory field true and Account number is 8246 (Freight A/C)
On the Line: Type: No.: Item 70001 (In the Item Card, Excise Accounting Type should be With CENVAT and Costing method should be FIFO in item card.) Base 10 1000 10000 True
Description: Quantity: Direct Unit Cost: Line Amount: Excise Loading on Inventory:
Non ITC Claimable Usage %: Calculate Structure
50
Excise % is 16.30, VAT % is 12.50 and Charges are 100 (fixed value). In this case program will calculate Excise Amount as 1630, VAT Amount as 1454 and Charges Amount as 100. Press F9 to view the Statistics Post the Order as Receive. View the Posted receipt document from Order menu button.
Click Navigate button in the Posted purchase Receipts window.
G/L Entry
The program creates the following G/L entry: Particulars Type Amount(Rs) 12457 12457
Raw materials DR (Interim) Inventory CR Adjustment Interim.
In this case the program will load the Excise Amount (1630), Charges Amount (100) and VAT Amount (727) on inventory. Item ledger Entry
In the Item Ledger Entry window, the program will update the value in the Cost Amount (Expected) field.
Value Entry
In the Value Entries window, the program will update the value in the Cost Amount (Expected) field. Now post the same order as Invoice.

G/L Entry
The program creates the following G/L entries: Particulars Raw materials (Interim) Inventory Adjustment Interim. Raw Material Direct Cost Applied Purchase Purchase Tax Freight Vendor Type CR DR DR CR DR DR DR CR Amount(Rs) 12457 12457 12457 12457 12357 727 100 13184
Value Entry
The program will update the value in the Cost Amount (Actual) field.
Item ledger Entry
In the original Item ledger entry, the program will transfer the value from the Cost Amount (Expected) field to the Cost Amount (Actual) field. Note 1: You can also load the excise amount on inventory if the Excise Accounting Type in the Item card is Without CENVAT. Note 2: You can post the same transaction through the Purchase Invoice. Note 3: You can post the same transaction for the capital item.
Appendix
Case 1:
Goods where duties paid but not allowed as CENVAT credit. Following goods are used in manufacturing and producing of dutiable goods or providing the taxable services but CENVAT credit [0]is not allowed under CENVAT Credit Rules for these goods Light Diesel Oil High Speed Diesel oil Motor Spirit The duties paid on these goods have to be loaded on the inventory Example: The manufacturer has purchased light diesel oil incurring the following: Purchase price Rs 10,000 Excise duty Rs 2,000 The following entry shows the loading of excise duty on the goods at the purchase time:
Purchases Vendor
Debit Rs 12000
Credit Rs 12000
Note: The RG registers will not be updated.
Case 2:
Duties paid on goods; on which CENVAT credit is not available The duties other than the duties mentioned in the CENVAT Credit rules or amendments made there under shall not be allowed, as CENVAT Credit should be loaded on the inventory. Example: The manufacturer has purchased 10 units of goods incurring the following: Purchase price Duty specified under First Schedule to the Excise Tariff Act Duty leviable under the X Act Rs 10,000 Rs 2,000 Rs 1,000
Duty leviable under the X act is not specified under CENVAT Credit rules or amendments made there under. The following entry shows the loading of duty on the goods and CENVAT credit at the purchase time: Purchases CENVAT credit Vendor Debit Rs 11000 2000 Credit Rs
13000
Note: The RG registers will be updated as under: RG 23 A Part I with 10 RG 23 A Part II with 2000
Case 3:
Goods used in Production / Manufacture of Exempted Goods or Exempted Services The duties paid goods which are used in producing or manufacturing of exempted goods; and the goods which are used in providing the exempted services are not allowed as CENVAT credit. The paid duties shall be loaded on the inventory.
Example: The manufacturer has purchased goods, which are to be used directly or indirectly in manufacturing the final goods. The final goods are exempted from the excise duty. Purchase price Rs 10,000 Excise duty Rs 2,000 The following entry will be used to load the excise duty on the goods (CENVAT not available) at the purchase time: Debit Rs 12000 Credit Rs 12000
Purchases Vendor
Note: The RG registers will not be updated.
Case 4:
Excise Exemption Take the example of Company ABC, which has multiple manufacturing locations. One of the manufacturing locations has excise duty benefit as 100% exemption. In this scenario Company ABC needs to maintain the RG 23 A Part I register for this location as maintained in the other locations. Location XYZ Raw Material @ Quantity Excise@ 0% = Rs. 1000 = 10 = Rs. 0
The entry will be as follows: Debit Rs 10000 Credit Rs 10000
Purchase A/C Vendor A/C
After Posting Purchase Order/Invoice, the program will update RG23A/C Part I with Quantity =10. Also the program will not create any entry in RG23A/C Part II.
Microsoft Business Solutions Navision 4.0 Excise Duty Computation on Stock Transfer and Captive Consumption of Manufactured Material
Table of Contents
Overview............................................................................................................................ 3 Detailed Setup .............................................................................................................. 3 Comprehensive Functionality ..................................................................................... 4 Reports........................................................................................................................... 4 Setup Required................................................................................................................. 5 Excise Setup for MRP ................................................................................................. 5 Inventory Setup: ........................................................................................................... 6 Location Setup.............................................................................................................. 8 Item Card:.................................................................................................................... 10 Transactions.................................................................................................................... 13 Computation of Excise on Stock Transfer (Manufacturing to Trading Location) in case of MRP ........................................................................................................... 13 Viewing the Posted Transaction (Transfer Shipments) ...............................15 Viewing the Posted Transaction (Transfer Receipts) ..................................18 Computation of Excise on Stock Transfer (Manufacturing to Manufacturing Location) in case of MRP.......................................................................................... 21 Viewing the Posted Transaction (Transfer Shipments) ...............................23 Viewing the Posted Transaction (Transfer Receipts) ..................................26 Computation of Excise on Stock Transfer (Trading to Trading Location) ......... 29 Viewing the Posted Transaction (Transfer Shipments) ...............................31 Viewing the Posted Transaction (Transfer Receipts) ..................................35 Computation of Excise on Stock Transfer (Trading to Manufacturing Location) ....................................................................................................................................... 38 Viewing the Posted Transaction (Transfer Shipments) ...............................39 Viewing the Posted Transaction (Transfer Receipts) ..................................43 Computation of Excise on Stock Transfer (Trading to Manufacturing Location in case of Capital Item).............................................................................................. 46 Viewing the Posted Transaction (Transfer Shipments) ...............................47 Viewing the Posted Transaction (Transfer Receipts) ..................................49 Computation of Excise on Stock Transfer (Manufacturing to Trading Location) ....................................................................................................................................... 52 Viewing the Posted Transaction (Transfer Shipments) ...............................53 Viewing the Posted Transaction (Transfer Receipts) ..................................57 Captive Consumption..................................................................................60 Viewing the Posted Transaction (Transfer Shipments) ...............................62 Item Journal ................................................................................................................ 67 Viewing the Posted Transaction .................................................................70 Report............................................................................................................................... 72 Appendix.......................................................................................................................... 74
Overview
The material transfer from one location to another location is very normal in any business scenario. Excise computation on excisable goods and /or excisable capital goods and / or with MRP in the transfer order document in case of transfer from manufacturing to trading location, manufacturing to manufacturing location, trading to manufacturing location, and trading to trading location needs to be tracked and recorded into the respective excise books. The excisable materials, manufactured within the company premises or factory for the sales and distributions are also used in factory or office according to the requirement. This activity is referred as Captive Consumption and needs to be recorded in the excise books. In captive consumption, the calculation of the excise liability will be done on unit cost or cost of production. The calculated excise liability needs to be created and for the consumption location; excise will be loaded on the inventory ledger in the Chart of Accounts.
Detailed Setup
Setup for excise computation on transfer order and the captive consumption functionalities are as below: Setup Area Excise Setup Structure Item Card Description You should setup the excise posting setup and other excise setup. Define structure to calculate the excise amount. The ECC No./ Item Categories form needs to be filled up for the excise computation on MRP. Unit cost of the product needs to be provided for the captive consumption as user can also change the unit cost on the transfer line Location Setup The Trading Location field should be checked to specify as trading location. ECC number should be attached for excisable location. Use number series in the Location card to track locationwise captive consumption shipment details. Inventory Setup Define the Captive Consumption percentage. Use number series for easy consumption order and shipment. tracking of captive
Setup Area
Description External document number is mandatory.
Computation of excise on MRP in case of stock transfer and Captive Consumption of produced material are explained as below. Computation of excise on MRP in the Stock Transfer document. Excise computation for both excisable normal goods and excisable capital goods. The stock transfer means transfer between manufacturing to trading location, manufacturing to manufacturing location, trading to manufacturing location, and trading to trading location. Stock transfer will update the RG register including RG 23 A Part I and Part II, RG 23 C Part I and Part II, and RG 23 D. The captive consumption of manufactured item will update the RG register.
Reports
Quarterly Return for Traders report is being updated with stock transfer with excise computation made on MRP. The Captive Consumption report display all record of material consumed for captive consumption. It also specifies the cost of production including the administration cost and the excise amount on daily basis.
Setup Required
Excise Setup for MRP
Navigation: Financial Management Setup Excise Posting Setup
In the excise components calculation type new option has been introduced as % of MRP. While calculating Excise on MRP you should select the calculation type as % of MRP in the relevant excise components. If you want to select calculation formula for any of the component then you need to use Excise % as option. Create the Excise posting setup in case of MRP on the following basis: Excise Posting Group: Excise Prod. Group: Excise Payable Account: CENVAT Cr. Receivable Account: CENVAT Cr. Deferred Account: BED Calculation Type: BED %: BED Calculation formula: SED Calculation Type: SED %: SED Calculation Formula: AED (GSI) Calculation Type: AED (GSI) %: AED (GSI/TTA) Calculation Formula: SAED Calculation Type: SAED %: SAED Calculation Formula: ECESS Calculation Type: ECESS %: GEN 84.15 2994 2993 2996 % of MRP 10 Blank % of MRP 2 Blank % of MRP 2 Blank % of MRP 2 Blank Excise % 2
ECESS Calculation Formula: SHE CESS Calculation Type: SHE CESS %: SHE CESS Calculation Formula:
BED Amount Excise % 1 BED Amount
Inventory Setup:
Navigation: Warehouse Setup Inventory Setup
Fields Description On the General tab Fields Captive Consumption % Description Define the captive consumption % to be loaded on the cost of production in this field for calculating the excise duty in case of material has been used for captive consumption. Place a check mark in this field to update the RG 23 D register with vendor invoice
External Doc. No. Mandatory
Fields
Description number.
Also define the number series on the Numbering tab:
Fields Description On the Numbering tab Fields Transfer Order Nos. (Captive) Description Attach a number series to allow the program to assign the number for captive consumption header You need to attach another number series for the posted shipment of captive consumption in this field. The number series attached in the Posted Shpt. Nos. (Captive) field will be used for all captive consumption posted shipment irrespective of location.
Posted Shpt. Nos. (Captive)
Location Setup
Create the location where the material are being produced and specify the location ECC number.
The above BLUE location is the manufacturing location with ECC number. For example the excisable material will be transferred from BLUE location for captive consumption. Also define the number series in the Sales Shpt. Nos. (Captive) field for the BLUE location to record the posted captive consumption shipment with location specific number series. Create a location where the produced material will be used as captive consumption and keep the Location ECC number blank.
In the above window the RED location is created and no ECC number has been attached with it. RED location will be the receiving location where the materials are used as captive consumption. (In case of captive consumption, the receiving location must not have the ECC number attached with.)
Place a check mark in the Trading Location field to specify the location as trading location incase of stock transfer as per the above example. (Note: In Stock Transfer you need to specify the ECC number for each location.)
Item Card:
Define the unit cost (cost of production) of the produced material which is used for sales and distribution. It will also be used in captive consumption.
In the above window you enter the unit cost for the FORKLIFT item in the Unit Cost field, which is defined as finished product. Also specify the following information: Unit Cost Gen. Prod. Posting Group VAT Prod. Posting Group Excise Prod. Posting Group Inventory Posting Group 1,000.00 RETAIL VAT12.5 94.03 FINISHED
Create a material with following information for the example of MRP stock transfer as below.
Enter the following information: Unit Cost Gen. Prod. Posting Group VAT Prod. Posting Group Excise Prod. Posting Group Inventory Posting Group 1,500.00 RAW MAT VAT12.5 84.15 RAW MAT
On the Item menu button select the ECC No. /Item Categories menu item. Setup the Maximum Retail Price and Abatement % for the computation of excise on the stock transfer.
Fields Description Fields MRP Description Place a check mark in the MRP field if the item lies under MRP provision of the Excise Act and excise duty is to be calculated on the basis of MRP. By placing a check mark in this field the program will put the check mark in MRP field in transfer order line for the particular item. Maximum Retail Price Define MRP in the Maximum Retail Price field. This price will be applicable for assigned E.C.C No in the location at the time of transferring from one location to another location and the item is falling under the MRP Provision of Excise Act. Define the abatement % in this field. The program will pick the abatement % for the calculation of excise duty in the Transfer Order if the item lies under the MRP Provision of the Excise Act.
Abatement %
Transactions
Computation of Excise on Stock Transfer (Manufacturing to Trading Location) in case of MRP
Fields Description Fields MRP Description The program populates the value in this field either from the ECC No. or from the Item Category window. This field is non editable. Maximum Retail Price The program populates the value in this field either from the ECC No. or from the Item Category window. This field is editable. Abatement % The program populates the value in this field either from the ECC No. or from the Item Category window.
This field is editable. In the above window press F3 to insert new document and enter the following information in Transfer Order header:
No. Transfer-from Code Transfer-to Code Posting Date In-Transit Code Structure Vendor Invoice No.
1157
BLUE (Manufacturing Location) GREEN (Trading Location)
01/04/07 OUT. LOG. EXCISE 1212
(Note: Vendor Invoice number is mandatory if the External Doc. No. Mandatory field is checked in the Inventory Setup while receiving the material) Enter the following details in the transfer order line: Item No. Quantity MRP MRP Price: Abatement %: Calculate Structure Value Post the document as Ship and Receive. 70072 10 Check Mark (The program will by default populate this value from ECC No. /Item Category window.) 1000(Program will by default populate this value from ECC No. /Item Category window.) 20(The program will by default populate this value from ECC No. /Item Category window.)

Select G/L Entry in the Navigate window and click Show.
The above window displays the affected G/L Accounts as below: Description Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Excise Payable Account Calculation of Excise on the following basis: MRP Price is 2000 per unit, Quantity is 10. Total MRP price is 20000 (2000*10) On 20000 Abatement % is 50. 20000*50% = 10000. 20000-10000 = 10000 On 10000, the program will calculate excise @ 16.30%. 10000*16.30% = 1630. Excise Amount is 1630 and Excise base amount is 10000. Dr/Cr Dr Cr Cr Dr Dr Cr Amount 15,000.00 15,000.00 15,000.00 15,000.00 1,630.00 1,630.00
The program will also create Excise entry with excise base amount as 10000. Select Excise Entry in the Navigate window and click Show.
Select RG 23 A Part I in the Navigate window and click Show.

The above window displays the detail GL entry as below: Description Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Cenvat Cr. Receivable(Trading) Select Excise Entry and click Show. Dr/Cr Dr Cr Cr Dr Cr Dr Amount 15,000.00 15,000.00 15,000.00 15,000.00 1,630.00 1,630.00
Select RG 23 D in the Navigate window and click Show.
Note 1: You can also post the same transaction for capital Item while keeping a check mark in the Claim Deferred Excise field. Note 2: If MRP field is checked on the transfer order line then Calculation Type in the Excise Posting setup should have % of MRP with the combination of blank calculation formula. In case of calculating the ECESS and SHE CESS, Calculation type should be Excise %. Note 3: In case of MRP, the program will not allow the user to post the transfer transaction if the Shipping location is a trading location.
Note 4: In case of MRP, the program will not allow the user to post the transfer transaction if a check mark is placed in the CVD field in the Structure. Note 5: If Abatement % is zero, then the program will not consider any Abatement % in the excise calculation. Note 6: If value in the MRP Price field is zero, then the program will not calculate any excise amount.
Computation of Excise on Stock Transfer (Manufacturing to Manufacturing Location) in case of MRP

Create a location named YELLOW, which will be a manufacturing location. For example:
Create a Transfer Order for Manufacturing to Manufacturing Location transfer as per the example given below:
In the above window press F3 to insert new document and enter the following information in Transfer Order header: No. Transfer-from Code Transfer-to Code Posting Date In-Transit Code Structure 1158 BLUE (Manufacturing Location) YELLOW (Manufacturing Location) 01/04/07 OUT. LOG. EXCISE
Enter the following details on the transfer order line: Item No. Quantity MRP MRP Price: Abatement %: Calculate Structure Value Post the document as Ship and Receive. 70072 10 Check Mark (The program will by default populate this value from ECC No. /Item Category window.) 1000(The program will by default populate this value from ECC No. /Item Category window.) 20(The program will by default populate this value from ECC No. /Item Category window.)

The above window displays the affected G/L Accounts as below: Description Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Excise Payable Account Calculation of Excise on the following basis: MRP Price is 2000 per unit, Quantity is 10. Total MRP price is 20000 (2000*10) On 20000 Abatement % is 50. 20000*50% = 10000. 20000-10000 = 10000 On 10000, the program will calculate excise @ 16.30%. 10000*16.30% = 1630. Excise Amount is 1630 and Excise base amount is 10000. Dr/Cr Dr Cr Cr Dr Dr Cr Amount 15,000.00 15,000.00 15,000.00 15,000.00 1,630.00 1,630.00
The program will also create Excise entry with excise base amount as 10000. Select Excise Entry in the Navigate window and click Show.

The above window displays the detail GL entry as below: Description Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Cenvat Cr. Receivable Account Dr/Cr Dr Cr Cr Dr Cr Dr Amount 15,000.00 15,000.00 15,000.00 15,000.00 1,630.00 1,630.00
Select Excise Entry in the Navigate window and click Show.
(Note: In case Capital Item is received in the manufacturing location, then the program will create two excise entries. Fifty percent of excise amount will be available as excise credit for the current year and fifty percent will transferred to next year as deferred excise credit) Select RG 23 A Part I in the Navigate window and click Show.
Select RG 23 A Part II in the Navigate window and click Show.
Computation of Excise on Stock Transfer (Trading to Trading Location)

Create a location named SILVER, which will be a trading location. For example:
Create a Transfer Order for Trading to Trading Location transfer as per the example given below:
Field Description Field Applies-to Entry (RG 23 D) Description Choose the RG 23 D entry that has to be transferred to other location. The program will calculate the excise amount based on the selected RG 23 D entry. (Note: If the excisable material is transferred from trading to other location, program will calculate excise on the base of applied document to RG 23 D.) In the above window press F3 to insert new document and enter the following information in Transfer Order header:
1159 GREEN (Trading Location) SILVER (Trading Location) 01/04/07 OUT. LOG. EXCISE 1216
(Note: Vendor invoice number is mandatory if the External Doc. No. Mandatory field is checked in Inventory Setup while receiving the material) Enter the following details in the transfer order line: Item No. Quantity Applies-to Entry (RG 23 D) Calculate Structure Value Post the document as Ship and Receive. 70074 10 Select the entry from the list

The above window displays the affected G/L Accounts as below: Description Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Cenvat Transferred (Trading) Dr/Cr Dr Cr Cr Dr Dr Cr Amount 15,000.00 15,000.00 15,000.00 15,000.00 1,630.00 1,630.00
To see the affect on RG 23D after posting the document with the application, you need to Navigate from Purchase History. Capture the source document number of RG 23 D, which has been applied with transfer order document.
Navigation: Purchase History Navigate
Select RG 23D in the Navigate window and click Show
The program has reversed the source RG 23 D entry in the original document.

The above window is displaying the detail GL entry as below: Description Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Cenvat Cr. Receivable(Trading) Dr/Cr Dr Cr Cr Dr Cr Dr Amount 10,000.00 10,000.00 10,000.00 10,000.00 1,630.00 1,630.00
Computation of Excise Manufacturing Location)
on
Stock
Transfer
(Trading
to
Create a Transfer Order for Trading to Manufacturing Location transfer as per the example given below:
(Note: If the excisable material is transferred from trading location to other location, the program will calculate excise on the base of applied document to RG 23 D) In the above window press F3 to insert new document and enter the following information in Transfer Order header: No. Transfer-from Code Transfer-to Code Posting Date In-Transit Code Structure 1160 GREEN (Trading Location) BLUE (Manufacturing Location) 01/04/07 OUT. LOG. EXCISE
Enter the following details in the transfer order line: Item No. Quantity 70074 10
Applies-to Entry (RG 23 D) Calculate Structure Value
Select the entry from the list
Post the document as Ship and Receive.

The above window displays the affected G/L Accounts as below: Description Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Cenvat Transferred (Trading) Select Excise Entry in the Navigate window and click Show. Dr/Cr Dr Cr Cr Dr Dr Cr Amount 10,000.00 10,000.00 10,000.00 10,000.00 1,630.00 1,630.00
To see the affect on RG 23D after posting the document with application, you need to Navigate from Purchase History. Capture the source document number of RG 23 D, which has been applied with transfer order document.
Select RG 23D in the Navigate window and click Show
The program has reversed the source RG 23 D entry in the original document.

The above window displays the detail GL entry as below: Description Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Cenvat Cr. Receivable Account Dr/Cr Dr Cr Cr Dr Cr Dr Amount 10,000.00 10,000.00 10,000.00 10,000.00 1,630.00 1,630.00
(Note: In case Capital Item is received in manufacturing location, then the program will create two excise entries. Fifty percent of excise amount will be available as excise credit for the current year and fifty percent will transferred to next year as deferred excise credit) Select RG 23 A Part I in the Navigate window and click Show.
Select RG 23 A Part II in the Navigate window and click Show.
Computation of Excise on Stock Transfer Manufacturing Location in case of Capital Item)

(Trading
to
In the above window press F3 to insert new document and enter the following information in Transfer Order header: No. Transfer-from Code Transfer-to Code Posting Date In-Transit Code Structure 1146 GREEN (Trading Location) BLUE (manufacturing Location) 01/04/07
OUT. LOG. EXCISE
Enter the following details in the transfer order line: Item No. Quantity Applies- to Entry (RG 23 D) Calculate Structure Value Post the document as Ship and Receive. 70073 10 73

The above window displays the affected G/L Accounts as below:
Description Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Inventory Adjmt., Raw Mat. Raw Materials CENVAT Transfer trading Select Excise Entry in the Navigate window and click Show.
Dr/Cr Dr Cr Cr Dr Dr Cr
Amount 10000 10000 10000 10000 1630 1630

The above window displays the detail GL entry as below: Description Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Inventory Adjmt., Raw Mat. Raw Materials Cenvat Cr. Receivable Account Cenvat Cr. Deferred Account Dr/Cr Dr Cr Cr Dr Cr Dr Dr Amount 10000 10000 10000 10000 1630 815 815
The program has created two entries as the item is received in manufacturing location and is a capital Item. Fifty percent of the excise amount will be available as excise credit for current year and rest of the fifty percent of excise amount will be transferred to next year as deferred excise. Select RG 23 C Part I in the Navigate window and click Show.
Select RG 23 C Part II in the Navigate window and click Show.
Computation of Excise on Stock Transfer (Manufacturing to Trading Location)

In the above window press F3 to insert new document and enter the following information in Transfer Order header:
1147 BLUE (Manufacturing Location) GREEN (Trading Location)
01/04/07 OUT. LOG. EXCISE 1217
(Note: Vendor invoice number is mandatory if the External Doc. No. Mandatory field is checked in the Inventory Setup while receiving the material) Enter the following details in the transfer order line: Item No. Quantity Calculate Structure Value Post the document as Ship and Receive. 1100 10

Navigation:
Warehouse History Posted Transfer Shipments
The above window displays the affected G/L Accounts as below: Description Finished goods Inventory Adjmt., Retail. Finished goods Inventory Adjmt., Retail Finished goods Unrealized Profit A/C Excise payable A/C Select Excise Entry in the Navigate window and click Show. Dr/Cr Dr Cr Cr Dr Dr Cr Cr Amount 1296.71 1296.71 1296.71 1296.71 10333.29 8703.29 1630
Select RG 23 A Part I and click Show.

The above window displays the detail GL entry as below: Description Finished goods Inventory Adjmt., Retail. Finished goods Inventory Adjmt., Retail Finished goods Unrealized Profit A/C Excise payable A/C Select Excise Entry in the Navigate window and click Show. Dr/Cr Dr Cr Cr Dr Cr Dr Dr Amount 1296.71 1296.71 1296.71 1296.71 10333.29 8703.29 1630
Note 1: The program will not create the excise deferred entry for excisable capital goods if the receiving location is a trading location. Note 2: External document number is mandatory to update the RG 23 D register. If the External Doc. No. Mandatory field is unchecked in Inventory Setup then the program will skip the External Document No.
Captive Consumption
For recording the captive consumption you use the captive consumption form.
Navigation: Purchase Order Processing Captive Consumption
Fields Description Fields Cost of Production Description The program will capture the value from Unit Cost of Item Card as Cost of Production. This field is editable. Admin. Cost % Mention the administration cost involved in the cost element of the product that is being produced. This field is editable. Cost of Prod. Incl. Admin Cost The Cost of Prod. Incl. Admin Cost shows the sum of Cost of Production and Admin. Cost %. This field is non editable. Captive Consumption % The percentage of captive consumption will be captured from the inventory setup. This field is non editable.
In the above window press F3 to insert new document and enter the following information in Captive Consumption header:
No. Transfer-from Code Transfer-to Code Posting Date In-Transit Code Structure
TCAP00025 BLUE RED (ECC No. is Blank in location card) 01/04/07 OUT. LOG. EXCISE
Enter the following details on the Captive Consumption line: Item No. Quantity Cost of Production Admin. Cost % Cost of Prod. Incl. Admin Cost Captive Consumption % 70068 10 1000 10 1100 (The program populate the value which is sum of Cost of production and Admin. Cost %) 10 (The program will flow the value in this field from Inventory setup)
Transfer price and Amount fields are non editable on transfer order line. Click Functions Calculate Structure Values
The excise amount calculation will be done in the following way: Excise Base Amount = [Unit Cost + (Unit Cost * Admin. %) + (Cost Of Prod. Incl. Admin Cost * Captive Consumption %)] * Quantity Excise Base Amount = (1,000 + 100 + 110) * 10 Excise Base Amount = 12,100 In the above table the excise has been calculated on 12,100. On 12100, the program will calculate Excise as 16.30% i.e. 1972. Post the document as Ship. (Note: The program will create the shipment and mark the document as Released. You can modify the transaction once you re-open the document.) To receive the produced material for captive consumption in the RED location you need to post the document as received. (Note: The program will create the receipt and remove the captive consumption document from the Captive Consumption form.)

The above window displays the affect in G/L Accounts as below: Description Finished Goods Inventory Adjmt., Retail Finished Goods Inventory Adjmt., Retail Finished Goods Unrealized Profit Account Excise Payable Account Select Excise Entry in the Navigate window and click Show. Dr/Cr Dr Cr Cr Dr Dr Cr Cr Amount 10,000.00 10,000.00 10,000.00 10,000.00 2,972.00 1,000.00 1,972.00

The above window displays the detail GL entry as below: Description Finished Goods Inventory Adjmt., Retail Finished Goods Inventory Adjmt., Retail Finished Goods Inventory Adjmt., Retail Finished Goods Unrealized Profit Account Inventory Adjmt., Retail Dr/Cr Dr Cr Cr Dr Dr Cr Cr Dr Dr Amount 10,000.00 10,000.00 10,000.00 10,000.00 1,972.00 1,972.00 2,972.00 1,000.00 1,972.00
In the Red location, the program has load the excise amount on inventory and also not created any excise entry. Note 1: The captive consumption form will display only the captive consumption transfer order. Note 2: The Captive Consumption % is applied on of the component that requires calculating the excise in case of captive consumption. The program does not allow to post the document if the Captive Consumption % is not provided in Inventory Setup. Note 3: The Admin. Cost % is applied on the component that requires calculating the excise in case of captive consumption. The program does not allow to post the document if the Admin. Cost % is not provided on the captive consumption line. Note 4: The Cost of Production and Admin. Cost % fields are editable on the captive consumption line. Note 5: The receiving location where the produced items are received for captive consumption; should not have the location ECC number attached. Note 6: Use Item Journal to adjust the inventory in the receiving location for the produced item in case of captive consumption.
Item Journal
The materials; received for the captive consumption in the RED location need to be needs to be consumed adjusted. The following setup is required to affect the appropriate inventory adjustment account. You create a separate General Business Posting Group for the captive consumption.
Attach the Captive Consumption Account in the General Posting Setup in combination of CAPTIVE and Gen. Bus. Posting Group, and RETIAL and Gen. Prod. Posting Group.
You use the Item Journal to adjust the inventory and affect the inventory ledger according to the setup.
Navigation: Purchase Inventory & Costing Item Journals
You select the Captive in Gen. Bus. Posting Group field to allow the Navision to create the appropriate GL Entry: Posting Date Document No. Entry Type Item No. Description Location Code Quantity Gen. Bus. Posting Group Gen. Prod. Posting Group Post the Item Ledger Entry. 01/04/07 T00009 Negative Adjmt. 70068 FORKLIFT RED 10 CAPTIVE RETAIL

The above window displays the following affected G/L Accounts: Description Captive Consumption Finished Goods Dr/Cr Dr Cr Amount 10,000.00 10,000.00
Report
Navigation: Financial Management General Ledger Report Excise Reporting Captive Consumption
Field Description: Fields Start Date End Date E.C.C. No. Description Enter start date, from which you want to generate the report. Enter end date, till which you want to generate the report. Choose the E.C.C. No. for which you want to generate the captive consumption report.
The program will display the captive consumption report as below:
In the above report, the program is displaying the calculated Cost of Production including the Admin. Cost %, Captive Consumption %, Calculated Excise Amount for each document, Daily Balances of Excise Amount, and so on. .
Appendix
Excise Duty Computation on Stock Transfer
In the following scenario, the program will compute the excise duty on stock transfer: Stock transfer from manufacturing location to the trading location for the MRP items Stock transfer from manufacturing location to the trading location for the regular items
Stock transfer from manufacturing location to the trading location for item which is coming under MRP provision of Excise Act In case stock has transferred from manufacturing location to trading location for the item which is coming under MRP provision, the excise will be computed by taking the abatement % as defined by the government. In shipping location, entry will be created in the RG23 part1 if it is a raw material and will be created in the Daily Stock account if it is a finished stock. In the receiving location (Trading location), entry will be created in the RG23D register. Example: Company X is transferring material X with fixed MRP. The government has allowed deduction by 50% on the excise duty computation. If the item price is Rs. 100 and company is making the stock transfer of Quantity 1 from Unit A (manufacturing location) to Unit B (Trading location) then the stock transfer value would be assessable value based on the 50% deduction means Rs. 50 will be the stock transfer price. The financial entries would be (Assuming Excise @10%): In the books of unit A (Manufacturing location) Particulars Unit B A/C Inventory A/C (Unit A) Excise Payable Debit Rs 55 Credit Rs 50 5
The program should update the RG 23 A Part I at Unit A with Quantity 1 and the program should create the Excise entry for Rs. 5. In the books of unit B (Trading location) Particulars Inventory A/C (Unit A) Cenvat receivable A/C Unit A A/C Debit Rs 50 5 Credit Rs 55
The program should update the RG 23 D with Rs. 5 and Quantity 1.
Stock transfer from manufacturing location to the trading location for item which is not coming under MRP provision of Excise Act In case stock has transferred from manufacturing location to trading location for the item which is not coming under MRP provision of Excise Act, excise will be computed on the transaction value. In shipping location entry will be created in RG23 part1 if it is raw material and will be created in the Daily Stock account if it is finished stock. In the receiving location (Trading location) entry will be created in the RG23D register. Example Company X is transferring material X from Unit A as factory location to the branch office. If the price of the item is Rs. 100, then company will compute the excise of the sales price and will make the transfer entry. The financial entries would be as follows (Assuming Excise @10%): In the books of unit A (Manufacturing location) Particulars Unit B A/C Inventory A/C (Unit A) Excise Payable Debit Rs 110 Credit Rs 100 10
The program should update the RG 23 A Part I at Unit A with Quantity 1 and the program should create the excise entry for Rs. 10 In the books of unit B (Trading location) Particulars Inventory A/C (Unit A) Cenvat receivable A/C Unit A A/C Debit Rs 100 10 Credit Rs 110
The program should update the RG 23 D with Rs. 10 and Quantity 1.
Captive Consumption
Computation of Excise duty on Captive consumption: Captive consumption means goods are not sold but are consumed within the same factory or another factory of the same manufacturer (Inter unit transfer). Levy of excise duty on captive consumption: Excise duty is applied on the manufactured goods and duty is liable to pay as soon as goods are manufactured within the factory. The use of manufactured goods within the factory is termed as captive consumption.
Captive consumption may be Used as fixed asset Used as personal consumption/ factory use
Used as fixed asset If excisable goods are manufactured and are used as fixed assets then the excise duty is leviable, but as per notification 67/1995 dated 16.03.1995, capital goods (as defined in the Cenvat Credit Rules) manufactured in a factory and used within the factory of production are exempted from excise duty. Further, as per explanation 2 to Rule 2(g) of Cenvat Credit Rules, inputs include goods used in manufacture of capital goods which are further used in the factory of manufacturer .Thus, if capital goods are manufactured and used within the factory, Cenvat Credit can be availed of goods which are used to manufacture such capital goods. Moreover no duty will be payable on such capital goods. Example: Steel trolleys manufactured and used within the factory for storage /carrying of parts is used in relation to manufacture of final product and hence the trolleys will be exempted from duty. Used as Personal consumption/Factory use: If the excisable manufactured goods are used either for personal consumption or for office use then excise duty will be leviable on the goods if the goods are marketable in the above said conditions. Example: Suppose the cost of the item is RS 1000 and excise amount is 100 then the following accounting entry will pass in the book of account. Particulars Expenses A/C Dr To, Inventory A/C Cr To, Excise Payable Amount(Rs) 1100 1000 100
Note: If the excisable goods are transferred from one excisable location to another Non Excisable location for captive consumption then compute the excise duty liability for shipping location and excise duty amount to be loaded on the inventory for the receiving location Example If the cost of production is based on general principles of costing of a commodity and is Rs. 10,000 per unit, then the assessable value of the goods will be Rs. 11,500 per unit. Considering Rs. 11,500 as assessable value, material needs to be transferred to the
other unit for captive consumption. The financial entries will be as follows (Assuming Excise % applicable at 10%): In the books of Factory-1 Particulars Inventory Adjustment A/c To, Inventory A/C To, Excise Payable A/C In the books of Factory -2 Particulars Debit Rs Inventory A/C (Factory 10115 2)(Receiving location To, Inventory Adjustment A/c Credit Rs 10115 Debit Rs 10115 Credit Rs 10000 115
Factory locations -2 update the RG 23 A Part I at Factory Unit 1 with Quantity 1 and the program should create the excise entry for Rs. 115. For Factory Unit 2, the program should update the inventory account. No excise entry will be created for the Factory 2. Relevant date when goods cleared for captive consumption If excisable goods are used within the factory (captive consumption), then the date of removal is the date on which goods are issued for such use within the factory. As per Excise Rule, one Invoice should be prepared per day. Valuation in case of Captive Consumption In case of captive consumption, valuation shall be done on the basis of cost of production plus 10% (percentage was 15% up to 05.08.2003). Cost of production is required to be calculated as per Cost Accounting Standard 4(CAS). CAS is issued by the Institute of Cost and works Accountants of India (ICWAI). Cost of production as per CAS-4 Prime Cost = Direct material cost + Direct labour cost + Direct expenses Cost of production = Prime cost + Production overhead + Administration overhead + R&D Cost (Apportioned) + Packing cost Example: Item A has captive use in the factory. The cost of production of Item A is Rs 1000 and excise rate is 10% then the excise payable for the item A is RS 110 (10% on the value of (1000+10% of Rs 1000)).
Microsoft Business Solutions Navision 4.0 Assessable Value Computation
Table of Contents
Overview...............................................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................3 Setup Required .....................................................................................................4 Excise Setup for MRP .......................................................................................4 Item Card ..........................................................................................................5 Structure............................................................................................................9 Customer Posting Group...................................................................................9 Calculation of Excise Duty in case of MRP through Sales Order ....................10 Viewing the Posted Transaction .................................................................12 Calculation of Excise, VAT and Charges in case of Price Inclusive of tax through Sales Order ........................................................................................17 Viewing the Posted Transaction .................................................................21 Calculation of Excise, VAT and Charges in case of MRP and Price Inclusive of tax through Sales Order ..................................................................................25 Viewing the Posted Transaction .................................................................29 Calculation of Excise, VAT and Charges with Line and Invoice Discount in case of MRP and Price Inclusive of tax through Sales Order ..........................31 Viewing the Posted Transaction .................................................................35 Calculation of Excise, VAT and Charges with one Line of MRP and Price Inclusive of tax and other line is without MRP and Price Inclusive of Tax through Sales Order. .......................................................................................42 Calculation of Excise Duty in case of MRP through Sales Return Order.........48 Viewing the Posted Transaction .................................................................50 Calculation of Excise, VAT and Charges in case of Price Inclusive of tax through Sales Return Order ............................................................................57 Calculation of Excise, VAT and Charges in case of MRP and Price Inclusive of tax through Sales Return Order.......................................................................65 Viewing the Posted Transaction .................................................................69 Calculation of Excise, VAT and Charges with Line and Invoice Discount in case of MRP and Price Inclusive of tax through Sales Return Order ..............72 Calculation of Excise, VAT and Charges with one Line of MRP and Price Inclusive of tax and other line is without MRP and Price Inclusive of Tax through Sales Return Order ............................................................................84 Viewing the Posted Transaction .................................................................87 Modifications in Line Structure in case of Price Inclusive of Tax through Sales Order ...............................................................................................................90 Viewing the Posted Transaction .................................................................95 Appendix.............................................................................................................98
Overview
The Assessable Value Computation functionality enables you to compute the excise duty under the MRP Provision of Excise Act. This functionality helps in the computation of excise duty in case selling price includes all taxes and charges.
Detailed Setup
You should prepare the following setups to enable the Assessable Value Computation functionality: Setup Area Excise Setup Structure Description You should setup the excise posting setup and other excise setup. Define structure to calculate the excise, sales tax and charges amount in case of MRP and Price Inclusive of tax. Define MRP Price, Abatement %, and PIT Structure. Also place a check mark in the MRP and Price Inclusive of Tax fields. Define MRP Price, Abatement %, and PIT Structure. Also place a check mark in the MRP and Price Inclusive of tax fields. Define PIT Difference Account No.
Item Card
Sales Price
Customer Posting Group
Following comprehensive Computation: functionalities are covered under Assessable value
Provision to calculate Excise Duty on MRP with Abatement % through the Sales Order / Invoice / Return Order / Credit Memo. Provision to calculate Excise, Sales Tax / VAT / CST, and Charges through Sales Order / Invoice / Return Order / Credit Memo if selling price is inclusive of all taxes. Provision of calculate Excise, Sales Tax / VAT / CST, and charges if Discounts are there in case of MRP and Price Inclusive of Tax through Sales Order / Invoice / Return Order / Credit Memo.
Setup Required
Excise Setup for MRP
In Excise components calculation type a new option as % of MRP has been introduced. While calculating Excise on MRP you should select calculation type as % of MRP in the relevant excise components. If you want to select the calculation formula for any of the component then you need to use Excise % as option. Create the Excise posting setup in case of MRP on the following basis: Excise Posting Group: Excise Prod. Group: Excise Payable Account: CENVAT Cr. Receivable Account: CENVAT Cr. Deferred Account: BED Calculation Type: BED %: BED Calculation formula: SED Calculation Type: SED %: SED Calculation Formula: AED (GSI) Calculation Type: AED (GSI) %: AED (GSI/TTA) Calculation Formula: SAED Calculation Type: SAED %: SAED Calculation Formula: ECESS Calculation Type: ECESS %: GEN 84.15 2994 2993 2996 % of MRP 10 Blank % of MRP 2 Blank % of MRP 2 Blank % of MRP 2 Blank Excise % 2
ECESS Calculation Formula: SHE CESS Calculation Type: SHE CESS %: SHE CESS Calculation Formula:
BED Amount Excise % 1 BED Amount
Item Card
Navigation: Purchase Planning Item Item Card
Fields Description: MRP tab: Fields MRP Description Place a check mark in the MRP field if the item lies under MRP provision of the Excise Act and excise duty is to be calculated on the basis of MRP. By placing a check mark in this field the program will put a check mark in the MRP field on the sales line for the particular item. MRP Price Mention the MRP price program will calculate the excise amount. This field contains the value for per unit of item. By entering the value in this field the program will put the same value in the MRP Price field on the sales line for the
particular item. Abatement% Mention Abatement % in this field, based on which excise duty base amount is to be considered. By entering the value in this field the program will put the same value in the Abatement % field on the sales line for the particular item. Price Inclusive of Tax Place a check mark in the Price Inclusive of Tax field in case the selling price is inclusive of all taxes. Note: when the Price Inclusive of Tax field is checked then the program will assume that the price defined in the Unit Price field is the price inclusive of all taxes, and value of the Unit Price field will get populated in the Unit Price Incl. of Tax field on the Sales line. PIT Structure Choose the structure from the look up list for which price inclusive of taxes is applicable. You have to define all tax components which are included in the price, in this structure. The program will calculate the excise duty and other components of taxes by making back ward calculation. This structure will get populated on the sales line in case the Price Inclusive of Tax field is checked. If any charge is defined in the structure for a line then the charge amount is applicable for that line only and it will not be divided among the lines. Unit Price Mention the unit price of the item which is also the unit price inclusive of tax.
Sales Price
Navigation: Purchase Planning Item Item Card Sales Prices
Fields Description Fields MRP Description Place a check mark in the MRP field if the item lies under MRP provision of the Excise Act and excise duty is to be calculated on the basis of MRP By placing a check mark in this field the program will put a check mark in MRP field in sales line for the particular item. MRP Price Mention the MRP price in this field, based on which the will calculate the excise amount. This field contains the value for per unit of item. By entering the value in this field the program will put the same value in the MRP Price field on the sales line for the particular item. Abatement% Mention Abatement % in this field, based on which excise duty base amount is to be considered. By entering the value in this field the program will put the same value in the Abatement % field on the sales line for the particular item.
Price Inclusive of Tax
Place a check mark in the Price Inclusive of Tax field in case the selling price is inclusive of all taxes. Note: when the Price Inclusive of Tax field is checked then the program will assume that the price defined in the Unit Price field is the price inclusive of all taxes, and value of the Unit Price field will get populated in the Unit Price Incl. of Tax field on the Sales line.
PIT Structure
Choose the structure from the look up list for which price inclusive of taxes is applicable. You have to define all tax components which are included in the price, in this structure. The program will calculate the excise duty and other components of taxes by making back ward calculation. This structure will get populated on the sales line in case the Price Inclusive of Tax field is checked. If any charge is defined in the structure for a line then the charge amount is applicable for that line only and it will not be divided among the lines.
Unit Price
Mention the unit price of the item which is also the unit price inclusive of tax.
Note: The program will work according to the duration defined in the sales price line
Structure
Field Description: Field Include PIT Calculation Description Place a check mark in this field if you want to include the particular tax in PIT (price inclusive of tax) calculation. If the Price Inclusive of Tax field on the sales line is checked then in structure any one structure order detail should have include PIT calculation field true.
Customer Posting Group

Navigation: Financial Management Setup Posting Groups Customer
Field Description Field PIT Difference Acc. Description Choose the PIT Difference Account in this field from the lookup list. The program will debit or credit the values in this account which will arise while posting the sales transactions related to price inclusive of tax. Note: while calculating the backward calculation the program may find some difference in the total amount. The program will check the same and post this amount in to separate account.
Calculation of Excise Duty in case of MRP through Sales Order

Fields Description: Fields MRP Description The program populates the value in this field either from the Item Card or from the Sales Price Card.
Fields MRP Price
Description This field is non editable. The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable.
Abatement%
This field will be populated by the program from item card or sales price card. This field is editable.
To calculate excise, fill the fields in the Sales Order form as follows: On the Header: Buy from Vendor No: Structure: On the Line: Type: No.: Description: Quantity: Unit of Measure code: Location: MRP: Item 1000 Bicycle 10 PCS blue Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000 (The program will by default populate this value either from the Item Card or from the Sales Price Card) 20(The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000 10000 10000 Excise
MRP Price:
Abatement %:
Unit Price Excl. VAT: Line Amount Excl. VAT: Calculate Structure Press F9 to view the excise amount Post the Order.

G/L Entry
The program creates the following entry: Particulars Customer Excise Payable Sales Type DR CR CR Amount(Rs) 11304 1304 10000
Calculation of excise on the following basis: MRP Price is 1000 per unit, Quantity is 10. Total MRP price is 10000 (1000*10) On 10000 Abatement % is 20. 10000*20% = 2000. 10000-2000 = 8000 On the value of 8000, the program will calculate excise @ 16.30%. 8000*16.30% = 1304. Excise Amount is 1304 and Excise base amount is 8000.
The program will also create excise entry with excise base amount as 8000.
Excise Entry
In Posted Shipment the program will create RG 23 A Part I entry with the Quantity sold as 10. Note 1: You can post the transaction from the Sales Invoice Note 2: You can also post the same transaction for capital Item while keeping a check mark in the Claim Deferred Excise field. Note 3: If MRP field is checked on the sales line then Calculation Type in the Excise Posting setup should have % of MRP with the combination of blank calculation formula. In case of calculating the ECESS and SHE CESS, Calculation type should be Excise %.
Note 4: In case of MRP, you can also adjust the excise payable amount through the Direct Debit to PLA/RG functionality. Note 5: In case of MRP, the program will not allow the user to post the sales transaction if a check mark is placed in the Trading field on the sales header. Note 6: In case of MRP, the program will not allow the user to post the sales transaction if a check mark is placed in the CVD field in the Structure. Note 7: In case of MRP, the program will not allow the user to change the excise components on the sales line after calculating structure. Note 8: In case of MRP, you can also post the transaction related to Free Supply. Note 9: You can choose the different price with MRP and Abatement % on the sales line through Get Price option available in the Functions menu button of Sales Order/Invoice; in case of price difference based on the time duration. Note 10: If Abatement % is zero, then the program will not consider any Abatement % in the excise calculation. Note 11: If value in the MRP Price field is zero, then the program will not calculate any excise amount. Note 12: If the Structure includes excise, sales tax / VAT / CST, and charges, then the program will calculate excise on MRP and then will calculate sales tax/VAT/CST and charges based on the formula defined in the Structure. Note 13: Calculation on MRP can only be done for the Type Item in Sales Order/Invoice.
Calculation of Excise, VAT and Charges in case of Price Inclusive of tax through Sales Order
Fields Description: Fields PIT Structure Description The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable. Price Inclusive of Tax The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable. Unit Price Inclusive of Tax The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable.
To calculate excise, VAT and charges, fill the fields in the Sales Order form as follows: On the Header: Buy from Vendor No: Location: On the Line: Type: No.: Description: Quantity: Unit of Measure code: Location: Price Inclusive of Tax: Item 1100 Front Wheel 10 PCS blue True (The program will by default populate this value either from the Item Card or from the Sales Price Card) PIT- EX/VAT (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) Blank Blank 10000 Blue
PIT Structure:
Unit Price Inclusive of Tax:
Unit Price Excl. VAT: Line Amount Excl. VAT:
The Unit Price Excl. VAT field and Line Amount Excl. VAT field will be blank before calculating structure. Calculate Structure
After calculating Structure, the program will populate the values in Unit Price Excl. VAT and Line Amount Excl. VAT fields. The program calculates the Unit Price Excl. VAT, multiply unit price with quantity, and then will populate the amount in the Line Amount Excl. VAT field. Sales Order line Unit Price Excl. VAT: Line Amount Excl. VAT: 694.791 6,947.91
Press F9 to view the Sales Order Statistics.
In the Sales Order Statistics window, the program will show the values in the Excise Amount, Tax (VAT) Amount and Charges Amount fields. Post the Order.

G/L Entry
The program creates the following entry: Particulars Customer Excise Payable Sales Tax Freight Sales Type DR CR CR CR CR Amount(Rs) 10000 1133 1010 909.09 6947.91
Calculation of excise, VAT and charges on the following basis: Excise % is 16.30, VAT % is 12.50, and Charges % is 10. In the Structure, excise will be calculated on base value, VAT will be calculated on base value plus excise amount, and charges will be calculated based on the sum of base value, excise amount, and VAT amount. Unit Price Excl. VAT: Line Amount Excl. VAT: 694.791 6,947.91
On 6947.91, the program has calculated 16.30% as excise. 6947.91*16.30% = 1133 Excise Amount (After rounding nearest to Rupee 1) On 8080.91 (6947.91+1133), the program has calculated 12.50 as VAT 8080.91*12.50% = 1010 VAT Amount (After rounding nearest to Rupee 1) On 9090.91 (8080.91+1010), the program has calculated 10% as Charges
9090.91*10% = 909.09 Charges Amount Now Excise Amount is 1133, VAT Amount is 1010 and Charges Amount is 909.09
The program will create excise entry with excise base amount as 6947.91 and will also create detailed tax entry for VAT amount. In Posted Shipment, the program will create RG 23 A Part I entry with Quantity sold as 10. Note 1: You can post the transaction from the Sales Invoice Note 2: You can post the same transaction for capital Item with a check mark in the Claim Deferred Excise field. Note 3: In case of Price Inclusive of Tax, you can also adjust the excise payable amount through the Direct Debit to PLA/RG functionality. Note 4: In case of price Inclusive of tax, the program will not allow you to post the sales transaction if a check mark is placed in the Trading field on the sales header. Note 5: In case of Price Inclusive of Tax in structure Include PIT Calculation field should be checked for at least one of the structure detail. If there are three calculation orders in the structure and you place a check mark in the third calculation order, then automatically above two will update this field with a check mark. And if you remove the check mark in first calculation order then the program will remove the check marks in second and third calculation orders. Note 6: In case of price Inclusive of tax, the program will not allow you to post the sales transaction if a check mark is placed in the CVD field in the structure. Note 7: The program will not allow the user to change the excise components on the sales line after calculating structure in case of Price Inclusive of tax. Note 8: In case of price Inclusive of tax, the program will not allow using the Free Supply functionality. Note 9: You can also choose the different price with PIT Structure on the sales line through Get Price option available in the Functions menu button of Sales Order / Invoice. Note 10: If a check mark is placed in the Price Inclusive of Tax field on the sales lines then it is mandatory to have PIT Structure and value in Unit Price Inclusive of Tax field on the sales line. Note 11: In case of price Inclusive of tax, you can not use Export or Deemed Export and VAT Exempted functionality. Note 12: The program will only include the particular tax in Price Inclusive of Tax against which Include PIT Calculation field is checked in the structure.
Note 13: You can calculate excise, sales tax / VAT / CST and charges in case of Price Inclusive of Tax. Note 14: In case charges are defined in structure and Structure is selected in PIT Structure field on the sales line. In this case the program will not divide the charges amount in multiple lines. Note 15: In case of Price Inclusive of Tax, you can view the Structure for that particular PIT line by clicking Line menu button and selecting the Structure menu item.
After clicking Structure menu item the program will open the Structure Order Details PIT window.
The same can be viewed from the posted invoice.
Note 16: In case of Price Inclusive of Tax, you can also calculate VAT with Standard Deduction % through Sales Order/Invoice. Note 17: Price Inclusive of Tax can only be done for Type Item on the Sales Order/Invoice. Note 18: If a check mark is placed in the Price Inclusive of Tax field on the sales line, then the program will not allow the user to enter value manually in Unit Price Excl. VAT and Line Amount Exc. VAT fields.
Calculation of Excise, VAT and Charges in case of MRP and Price Inclusive of tax through Sales Order
Fields Description: Fields PIT Structure Description The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable. Price Inclusive of Tax The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable.
Unit Price Inclusive of Tax
The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable.
MRP
MRP Price
Abatement%
To calculate excise, VAT and Charges, fill the fields in the Sales Order form as follows: On the Header: Buy from Vendor No: Location: On the Line: Type: No.: Description: Quantity: Unit of Measure code: Location: Price Inclusive of Tax: Item 1000 Bicycle 10 PCS blue Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) PIT- EX/VAT (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) 10000 Blue
PIT Structure:
MRP:
MRP Price:
Abatement %:
Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) 20(The program will by default populate this value either from the Item Card or from the Sales Price Card) Blank Blank
The Unit Price Excl. VAT and Line Amount Excl. VAT fields will be blank before calculating structure. Calculate Structure
After calculating structure, the program will populate the values in Unit Price Excl. VAT and Line Amount Excl. VAT fields. The program will calculate Unit Price excl. VAT, multiply unit price with quantity, and then will populate the amount in the Line Amount Excl. VAT field. Sales Order line Unit Price Excl. VAT: Line Amount Excl. VAT: 677.691 6,776.91
Press F9 to view Sales Order Statistics
In the Sales Order Statistics window, the program will show the Excise Amount, Tax (VAT) Amount and Charges Amount. Post the Order.

G/L Entry
The program creates the following entry: Particulars Customer Excise Payable Sales Tax Freight Sales Type DR CR CR CR CR Amount(Rs) 10000 1304 1010 909.09 6776.91
Calculation of Excise, VAT and Charges on the following basis: Excise % is 16.30, VAT % is 12.50 and Charges % is 10. In Structure, the excise will be calculated on base value, VAT will be calculated based on the sum of base value and excise amount, and charges will be calculated based on the sum of base value, excise amount and VAT amount. Sales Order line Unit Price Excl. VAT: Line Amount Excl. VAT: 677.691 6,776.91
In this case Excise will be calculated on MRP. MRP Price is 1000 per unit, Quantity is 10. Total MRP price is 10000 (1000*10) On 10000 Abatement % is 20.
10000*20% = 2000. 10000-2000 = 8000 On 8000, the program will calculate excise @ 16.30%. 8000*16.30% = 1304. Excise Amount is 1304 and Excise base amount is 8000. On 8080.91 (6,776.91+1304), the program has calculated 12.50 as VAT 8080.91*12.50% = 1010, VAT Amount (After rounding nearest to Rupee 1) On 9090.91 (8080.91+1010), the program has calculated 10% as Charges 9090.91*10% = 909.09 = Charges Amount Now Excise Amount is 1304, VAT Amount is 1010 and Charges Amount is 909.09
The program will also create excise entry with excise base amount as 8000 and will also create detailed tax entry for VAT amount. In Posted Shipment, the program will create RG 23 A Part I entry with Quantity sold as 10. Note 1: You can also post the transaction from the Sales Invoice. Note 2: You can post the same transaction for the capital Item.
Calculation of Excise, VAT and Charges with Line and Invoice Discount in case of MRP and Price Inclusive of tax through Sales Order
Field Description On the Sales Header Field Cal. Inv. Discount (%) Description Place a check mark in this field to calculate Invoice Discount in case of Price Inclusive of Tax. If this field is checked then you can not use Calculate Invoice Discount option available in functions menu button on sales order/invoice. To calculate excise, VAT and Charges, fill the fields in the Sales Order form as follows: On the Header: Buy from Vendor No: Location: Cal. Inv. Discount (%): 10000 Blue Check Mark (In the Customer Card 10% is defined as Invoice Discount)
On the Line: Type: No.: Description: Quantity: Unit of Measure code: Location: Item 1000 Bicycle 10 PCS blue
Price Inclusive of Tax:
PIT Structure:
MRP:
MRP Price:
Abatement %:
Unit Price Excl. VAT: Line Amount Excl. VAT: Line Discount %: Calculate Structure
Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) PIT- EX/VAT (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) 20(The program will by default populate this value either from the Item Card or from the Sales Price Card) Blank Blank (-1000) after entering the value in line Discount % field) 10
After calculating Structure, the program will populate the values in the Unit Price Excl. VAT and Line Amount Excl. VAT fields. The program will calculate Unit Price excl. VAT, multiply unit price with quantity, and populate the amount in the Line Amount Excl. VAT field. Sales Order line Unit Price Excl. VAT: 708.695
Line Amount Excl. VAT:
6,086.95
In Sales Order Statistics, the program will show the Excise Amount, Tax (VAT) Amount and Charges Amount. Note: In sales order statistics Inv. Discount Amount field is non editable in case of Price Inclusive of tax. Post the Order.

G/L Entry
The program creates the following entry: Particulars Type Customer DR Excise Payable CR Sales Tax CR Freight CR Sales CR Discount Granted DR Discount Granted DR PIT Difference A/C DR Invoice Rounding DR Amount(Rs) 8391 1304 848 763.03 7086.95 1000 608.70 1.98 0.30
In this case the program will debit the PIT Difference Account with the value 1.98. Calculation of excise, VAT and charges on the following basis: Excise % is 16.30, VAT % is 12.50 and Charges % is 10. In Structure, the excise will be calculated on base value, VAT will be calculated based on the sum of base value and excise amount, and charges will be calculated based on the sum of base value, excise amount and VAT amount. Sales Order line Unit Price Excl. VAT: 708.695
Line Amount Excl. VAT: 6,086.95 In this case line discount is 1000 and invoice discount is 608.70. In this case excise will be calculated on MRP. MRP Price is 1000 per unit, Quantity is 10. Total MRP price is 10000 (1000*10). On 10000 Abatement % is 20. 10000*20% = 2000. 10000-2000 = 8000. On 8000, the program will calculate excise @ 16.30%. 8000*16.30% = 1304. Excise Amount is 1304 and Excise base amount is 8000. On 6,782.25 (line amount invoice discount + excise amount) i.e. (6,086.95 608.70 + 1304), the program has calculated 12.50 as VAT. 6,782.25 *12.50% = 848 =VAT Amount (After rounding nearest to Rupee 1) On 7630.25 (6,782.25+848), the program has calculated 10% as Charges 7630.25 *10% = 763.03 = Charges Amount Now Excise Amount is 1304, VAT Amount is 848 and Charges Amount is 763.03
The program will create excise entry with excise base amount as 8000 and will also create Detailed Tax Entry for VAT Amount.
Excise Entry
Detailed Tax Entry
In Posted Shipment the program will create RG 23 A part I entry with Quantity sold as 10. Note 1: You can post the transaction from the Sales Invoice Note 2: You can post the same transaction for the capital Item. Note 3: In case of PIT, the program will calculate Invoice Discount if the Cal. Inv. Discount (%) field is checked on the sales header. In this case you can not use Calculate Invoice Discount functionality from the Functions menu button in Sales Order/Invoice.
Note 4: Incase PIT Invoice Discount Amount field in the Sales Order Statistics is non editable. Note 5: Take a case when any order/invoice has multiple lines, in which Price Inclusive of Tax field is checked for some lines and unchecked for some lines. In this case if you want to calculate invoice discount, then you can only calculate invoice discount by placing a check mark in Cal. Inv. Discount (%) field on the sales header.
Calculation of Excise, VAT and Charges with one Line of MRP and Price Inclusive of tax and other line is without MRP and Price Inclusive of Tax through Sales Order.
To calculate excise, VAT and Charges, fill the fields in the Sales Order form as follows: On the Header: Buy from Vendor No: Location: Structure: 10000 Blue PIT- EX/VAT (for calculation of Excise, VAT and Charges)
On the First Line: Type: No.: Description: Quantity: Unit of Measure code: Location: Item 1000 Bicycle 10 PCS blue
PIT Structure:
MRP:
MRP Price:
Abatement %:
Unit Price Excl. VAT: Line Amount Excl. VAT: On the Second Line: Type: No.: Description: Quantity: Unit of Measure code: Location: Unit Price Excl. VAT: Line Amount Excl. VAT: Calculate Structure
Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) PIT- EX/VAT (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000((The program will by default populate this value either from the Item Card or from the Sales Price Card) Check Mark ((The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) 20(The program will by default populate this value either from the Item Card or from the Sales Price Card) Blank Blank
Item 1110 Rim 10 PCS blue 1000 10000
After calculating structure, the program will populate the values in Unit Price Excl. VAT and Line Amount Excl. VAT fields. The program will calculate Unit Price excl. VAT, multiply unit price with quantity, and then will populate the amount in the Line Amount Excl. VAT field. Sales Order line Unit Price Excl. VAT: Line Amount Excl. VAT: 677.691 6,776.91
In the Sales Order Statistics window, the program will show the Excise Amount, Tax (VAT) Amount and Charges Amount. Post the Order.

G/L Entry
The program creates the following entry: Particulars Customer Excise Payable Excise Payable Freight Sales Tax Sales Invoice Rounding Type DR CR CR CR CR CR DR Amount(Rs) 24392 1630 1304 2217.49 2464 16776.91 0.40
Calculation of excise, VAT and charges on the following basis: Excise % is 16.30, VAT % is 12.50 and Charges % is 10. In Structure, the excise will be calculated on base value, VAT will be calculated based on the sum of base value and excise amount, and charges will be calculated based on the sum of base value, excise amount and VAT amount. For the First Line Sales Order line Unit Price Excl. VAT: Line Amount Excl. VAT: 677.691 6,776.91
In this case excise will be calculated on MRP.
MRP Price is 1000 per unit, Quantity is 10. Total MRP price is 10000 (1000*10) On 10000 Abatement % is 20. 10000*20% = 2000. 10000-2000 = 8000 On 8000, the program will calculate excise @ 16.30%. 8000*16.30% = 1304. Excise Amount is 1304 and Excise base amount is 8000. On 8080.91 (6,776.91+1304), the program has calculated 12.50 as VAT 8080.91*12.50% = 1010 VAT Amount (After rounding nearest to Rupee 1) On 9090.91 (8080.91+1010), the program has calculated 10% as Charges 9090.91*10% = 909.09 = Charges Amount Now Excise Amount is 1304, VAT Amount is 1010 and Charges Amount is 909.09
For the Second Line Line Amount is 10000 On 10000, the program has calculated excise @ 16.30%. 10000*16.30% = 1630 = Excise Amount On 11630 (10000+1630), the program has calculated VAT @ 12.50% 11630*12.50% = 1454 = VAT Amount. On 13084 (11630+1454), the program has calculated charges @ 10% 13084*10% = 1308.40 = Charges Amount. Now Excise Amount is 1630, VAT Amount is 1454 and Charges Amount is 1308.40
The program will also create two excise entries and two detailed tax entries. In Posted Shipment the program will create RG 23 A part I entries with Quantity sold as 10.
Note 1: You can post the transaction from the Sales Invoice Note 2: You can also post the same transaction for capital Item. Note 3: In this case you can define the same structure as line structure and header structure.
Calculation of Excise Duty in case of MRP through Sales Return Order

Fields Description: Fields MRP Description The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is non editable. MRP Price The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable. Abatement% The program populates the value in this
Fields
Description field either from the Item Card or from the Sales Price Card. This field is editable.
To calculate excise, fill the fields in the Sales Return Order form as follows: On the Header: Buy from Vendor No: Structure: On the Line: Type: No.: Description: Quantity: Unit of Measure code: Location: MRP: Item 1000 Bicycle 10 PCS blue Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) 20(The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000 10000 10000 Excise
MRP Price:
Abatement %:
Unit Price Excl. VAT: Line Amount Excl. VAT: Calculate Structure Press F9 to view the excise amount Post the Return Order.

G/L Entry
The program creates the following entry: Particulars Sales CENVAT Receivable Customer Type DR Cr DR CR Amount(Rs) 10000 1304 11304
Calculation of excise on the following basis: MRP Price is 1000 per unit, Quantity is 10. Total MRP price is 10000 (1000*10) On 10000 Abatement % is 20. 10000*20% = 2000. 10000-2000 = 8000 On 8000, the program will calculate excise @ 16.30%. 8000*16.30% = 1304. Excise Amount is 1304 and Excise base amount is 8000.
The program will also create Excise entry with excise base amount as 8000.
Excise Entry
In the Posted Return Receipt the program will create RG 23 A Part I & II entries.
RG 23 A Part II
Note 1: You can post the transaction from the Sales Credit Memo. Note 2: You can also post the same transaction for capital Item Note 3: If MRP field is checked on the sales line then Calculation Type in the Excise Posting setup should have % of MRP with the combination of blank calculation formula. In case of calculating the ECESS and SHE CESS, Calculation type should be Excise %. Note 4: In case of MRP, the program will not allow you to post the sales transaction if a check mark is placed in the Trading field on the sales header in case of MRP.
Note 5: In case of MRP, the program will not allow you to post the sales transaction if a check mark is placed in the CVD field in structure. Note 6: In case of MRP, the program will not allow the user to change the excise components on the sales line after calculating structure. Note 7: If Abatement % is zero, then the program will not consider any Abatement % in the excise calculation... Note 8: If value in the MRP Price field is zero, then the program will not calculate any excise amount. Note 9: If the Structure includes excise, sales tax / VAT / CST, and charges, then the program will calculate excise on MRP and then will calculate sales tax/VAT/CST and charges based on the formula defined in the Structure. Note 10: Calculation on MRP can only be done for the Type Item in the sales Return Order/Credit Memo.
Calculation of Excise, VAT and Charges in case of Price Inclusive of tax through Sales Return Order
Fields Description: Fields PIT Structure Description The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable. Price Inclusive of Tax The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable. Unit Price Inclusive of Tax The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable.
To calculate excise, VAT and Charges, fill the fields in the Sales Return Order form as follows: On the Header: Buy from Vendor No: Location: On the Line: Type: No.: Description: Quantity: Unit of Measure code: Location: Price Inclusive of Tax: Item 1100 Front Wheel 10 PCS blue Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) PIT- EX/VAT (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) Blank Blank 10000 Blue
PIT Structure:
After calculating structure, the program will populate the values in the Unit Price Excl. VAT and Line Amount Excl. VAT fields. The program will calculate Unit Price excl. VAT, multiply unit price with quantity, and then will populate the amount in the Line Amount Excl. VAT field.
694.791 6,947.91
Press F9 to view the Sales Return Order Statistics.
In the Sales Return Order Statistics window, the program will show the Excise Amount, Tax (VAT) Amount and Charges Amount. Post the Return Order.

Navigation: Sales & Marketing History Posted Credit Memo.
G/L Entry
The program creates the following entry: Particulars Sales Sales tax CENVAT Receivable Freight Customer Type DR DR Cr. DR DR CR Amount(Rs) 6947.91 1010 1133 909.09 10000
Calculation of excise, VAT and charges on the following basis: Excise % is 16.30, VAT % is 12.50 and Charges % is 10. In Structure, the excise will be calculated on base value, VAT will be calculated based on the sum of base value and excise amount, and charges will be calculated based on the sum of base value, excise amount and VAT amount. Sales Return Order line Unit Price Excl. VAT: Line Amount Excl. VAT: 694.791 6,947.91
On 6947.91, the program has calculated 16.30% as Excise. 6947.91*16.30% = 1133 = Excise Amount (After rounding nearest to Rupee 1) On 8080.91 (6947.91+1133), the program has calculated 12.50 as VAT 8080.91*12.50% = 1010 = VAT Amount (After rounding nearest to Rupee 1)
On 9090.91 (8080.91+1010), the program has calculated 10% as Charges 9090.91*10% = 909.09 =Charges Amount Now Excise Amount is 1133, VAT Amount is 1010 and Charges Amount is 909.09
The program will also create Excise entry with excise base amount as 6947.91 and also create Detailed Tax Entry for VAT Amount. In Posted Return Receipt the program will create RG 23 A part I & II entries. Note 1: You can also post the transaction from the Sales Credit Memo. Note 2: You can also post the same transaction for the capital Item. Note 3 In case of price Inclusive of tax, the program will not allow you to post the sales transaction if a check mark is placed in the Trading field on the sales header. Note 4: In case of Price Inclusive of Tax in structure Include PIT Calculation field should be checked for at least one of the structure detail. If there are three calculation orders in the structure and you place a check mark in the third calculation order, then automatically above two will update this field with a check mark. And if you remove the check mark in first calculation order then the program will remove the check marks in second and third calculation orders. Note 5 The program will not allow the user to post the sales transaction if CVD is checked in structure in case of Price Inclusive of tax. Note 6: The program will not allow the user to change the excise components on sales line after calculating structure in case of Price Inclusive of tax. Note 7: If Price Inclusive of Tax is checked on sales lines then it is mandatory to have PIT Structure and value in Unit Price Inclusive of Tax field on sales line. Note 8: In case of Price Inclusive of VAT, You can not use the Export or Deemed Export and VAT Exempted functionality. Note 9: The program will only include the particular tax in Price Inclusive of Tax against which Include PIT Calculation field is checked in structure. Note 10: In case of Price Inclusive of VAT, You can calculate Excise, Sales tax/ VAT/ CST and Charges. Note 11: In case charges are defined in structure and Structure is selected in the PIT Structure field on the sales line. In this case the program will not divide the charges amount in multiple lines.
Note 12: In case of Price Inclusive of Tax user can view the Structure for that particular PIT line by clicking Line menu button and click Structure menu item.
After clicking the Structure menu item the program will open the Structure Order Details PIT.
The same can be viewed from the Posted Credit Memo. Note 13: In case of Price Inclusive of Tax, you can also calculate VAT with Standard Deduction % through the Sales Return Order/Credit Memo. Note 14: Price Inclusive of Tax can be only done for the Type Item on the Sales Return Order/Credit Memo. Note 15: If Price inclusive of tax field is checked on the sales line then the program will not allow the user to enter the value manually in the Unit Price Excl. VAT and Line Amount Exc. VAT fields.
Calculation of Excise, VAT and Charges in case of MRP and Price Inclusive of tax through Sales Return Order
Fields Description: Fields PIT Structure Description The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable. Price Inclusive of Tax The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable. . The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable. The program populates the value in this field either from the Item Card or from the
Unit Price Inclusive of Tax
MRP
Sales Price Card. This field is editable. MRP Price The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable. Abatement% The program populates the value in this field either from the Item Card or from the Sales Price Card. This field is editable.
To calculate excise, VAT and Charges, fill the fields in the Sales Return Order form as follows: On the Header: Buy from Vendor No: Location: On the Line: Type: No.: Description: Quantity: Unit of Measure code: Location: Price Inclusive of Tax: Item 1000 Bicycle 10 PCS blue Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) PIT- EX/VAT (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) 10000 Blue
PIT Structure:
MRP:
MRP Price:
Abatement %:
20(The program will by default populate this value either from the Item Card or from the Sales Price Card) Blank Blank
After calculating structure, the program will populate the values in the Unit Price Excl. VAT and Line Amount Excl. VAT fields. The program will calculate Unit Price excl. VAT, multiply unit price with quantity, and then will populate the amount in the Line Amount Excl. VAT field. Sales Return Order line Unit Price Excl. VAT: Line Amount Excl. VAT: 677.691 6,776.91
Press F9 to view Sales Return Order Statistics window.
In Sales Return Order Statistics window, the program will show the Excise Amount, Tax (VAT) Amount and Charges Amount. Post the Return Order.

G/L Entry
The program creates the following entry: Particulars Sales Sales tax CENVAT Receivable Freight Customer Type DR DR Cr. DR DR CR Amount(Rs) 6776.91 1010 1304 909.09 10000
Calculation of excise, VAT and charges on the following basis: Excise % is 16.30, VAT % is 12.50 and Charges % is 10. In Structure, the excise will be calculated on base value, VAT will be calculated based on the sum of base value and excise amount, and charges will be calculated based on the sum of base value, excise amount and VAT amount.
677.691 6,776.91
In this case excise will be calculated on MRP. MRP Price is 1000 per unit, Quantity is 10. Total MRP price is 10000 (1000*10) On 10000 Abatement % is 20.
10000*20% = 2000. 10000-2000 = 8000 On 8000 the program will calculate excise @ 16.30%. 8000*16.30% = 1304. Excise Amount is 1304 and Excise base amount is 8000. On 8080.91 (6,776.91+1304) the program has calculated 12.50 as VAT 8080.91*12.50% = 1010 VAT Amount (After rounding nearest to Rupee 1) On 9090.91 (8080.91+1010) the program has calculated 10% as Charges 9090.91*10% = 909.09 = Charges Amount Now Excise Amount is 1304, VAT Amount is 1010 and Charges Amount is 909.09
The program will also create excise entry with excise base amount as 8000 and also create Detailed Tax Entry for VAT Amount. In Posted Return Receipt the program will create RG 23 A part I & II entries. Note 1: You can also post the transaction from the Sales Credit Memo. Note 2: You can also post the same transaction for capital Item.
Calculation of Excise, VAT and Charges with Line and Invoice Discount in case of MRP and Price Inclusive of tax through Sales Return Order
Field Description On the Sales Header Field Cal. Inv. Discount (%) Description Place a check mark in this field to calculate invoice discount in case of Price Inclusive of Tax. If this field is checked then you can not use Calculate Invoice Discount option available in Functions menu button in the Sales Return Order/Credit Memo. To calculate excise, VAT and Charges, fill the fields in the Sales Return Order form as follows: On the Header: Buy from Vendor No: Location: Cal. Inv. Discount (%): 10000 Blue Check Mark (In the Customer Card 10% is defined as Invoice Discount)
On the Line:
Type: No.: Description: Quantity: Unit of Measure code: Location: Price Inclusive of Tax:
PIT Structure:
MRP:
MRP Price:
Abatement %:
Unit Price Excl. VAT: Line Amount Excl. VAT: Line Discount %: Calculate Structure
Item 1000 Bicycle 10 PCS blue Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) PIT- EX/VAT (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) 20(The program will by default populate this value either from the Item Card or from the Sales Price Card) Blank Blank (-1000) after entering the value in line Discount % field) 10
After calculating structure, the program will populate the values in Unit Price Excl. VAT and Line Amount Excl. VAT fields. The program will calculate Unit Price excl. VAT, multiply unit price with quantity, and then will populate the amount in the Line Amount Excl. VAT field. Sales Return Order line Unit Price Excl. VAT: Line Amount Excl. VAT: 708.695 6,086.95
Press F9 to view Sales Return Order Statistics
In the Sales Order Statistics window, the program will show the Excise Amount, Tax (VAT) Amount and Charges Amount. Note: In the Sales Order Statistics window, Inv. Discount Amount field is non editable in case of Price Inclusive of tax. Post the Return Order.

Navigation: Sales & Marketing History Posted Credit Memo.
G/L Entry
The program creates the following entry: Particulars Type Amount(Rs) Customer CR 8391 CENVAT Cr. DR 1304 Receivable Sales Tax DR 848 Freight DR 763.03 Sales DR 7086.95 Discount Granted CR 1000 Discount Granted CR 608.70 PIT Difference A/C CR 1.98 Invoice Rounding CR 0.30 In this case the program will credit the PIT Difference Account with 1.98. Calculation of excise, VAT and charges on the following basis: Excise % is 16.30, VAT % is 12.50 and Charges % is 10. In Structure, the excise will be calculated on base value, VAT will be calculated based on the sum of base value and excise amount, and charges will be calculated based on the sum of base value, excise amount and VAT amount. Sales Return Order line Unit Price Excl. VAT: Line Amount Excl. VAT: 708.695 6,086.95
In this case line discount is 1000 and Invoice discount is 608.70 In this case excise will be calculated on MRP: MRP Price is 1000 per unit, Quantity is 10. Total MRP price is 10000 (1000*10). On 10000 Abatement % is 20. 10000*20% = 2000. 10000-2000 = 8000. On 8000, the program will calculate excise @ 16.30%. 8000*16.30% = 1304. Excise Amount is 1304 and Excise base amount is 8000. On 6,782.25 (line amount invoice discount + excise amount) i.e. (6,086.95 608.70 + 1304) the program has calculated 12.50 as VAT. 6,782.25 *12.50% = 848 = VAT Amount (After rounding nearest to Rupee 1) On 7630.25 (6,782.25+848), the program has calculated 10% as Charges 7630.25 *10% = 763.03 = Charges Amount Now Excise Amount is 1304, VAT Amount is 848 and Charges Amount is 763.03
The program will also create excise entry with excise base amount as 8000 and will also create Detailed Tax Entry for VAT Amount.
Excise Entry
Detailed Tax Entry
In Posted Return Receipt, the program will create RG 23 A Part I & II entries
Note 1: You can also post the transaction from the Sales Credit Memo. Note 2: You can also post the same transaction for the capital Item. Note 3: In case of PIT, the program will calculate the invoice discount if the Cal. Inv. Discount (%) field is checked on the sales header. In this case you can not use the Calculate Invoice Discount functionality from Functions menu button in the Sales Return Order/Credit Memo. Note 4: Incase of PIT, Invoice Discount Amount field in Sales Return Order Statistics is non editable.
Note 5: If any Return Order/Credit Memo has multiple lines, in which for some lines Price Inclusive of tax field is checked and unchecked for some lines. In this case if you want to calculate invoice discount then you can only calculate invoice discount by placing a check mark in the Cal. Inv. Discount (%) field on the sales header.
Calculation of Excise, VAT and Charges with one Line of MRP and Price Inclusive of tax and other line is without MRP and Price Inclusive of Tax through Sales Return Order
To calculate excise, VAT and Charges, fill the fields in the Sales Return Order form as follows: On the Header: Buy from Vendor No: Location: Structure: 10000 Blue PIT- EX/VAT (for calculation of Excise, VAT and Charges)
On the First Line: Type: No.: Description: Quantity: Unit of Measure code: Location: Item 1000 Bicycle 10 PCS blue
PIT Structure:
MRP:
MRP Price:
Abatement %:
Unit Price Excl. VAT: Line Amount Excl. VAT: On the Second Line: Type: No.: Description: Quantity: Unit of Measure code: Location: Unit Price Excl. VAT: Line Amount Excl. VAT: Calculate Structure
Check Mark ((The program will by default populate this value either from the Item Card or from the Sales Price Card) PIT- EX/VAT (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) 20(The program will by default populate this value either from the Item Card or from the Sales Price Card) Blank Blank
Item 1110 Rim 10 PCS blue 1000 10000
After calculating structure, the program will populate the values in Unit Price Excl. VAT and Line Amount Excl. VAT fields. The program will calculate Unit Price excl. VAT, multiply unit price with quantity, and then will populate the amount in the Line Amount Excl. VAT field. For the First Line Unit Price Excl. VAT: Line Amount Excl. VAT: 677.691 6,776.91
Press F9 to view the Sales Return Order Statistics window.
In the Sales Return Order Statistics window, the program will show the Excise Amount, Tax (VAT) Amount and Charges Amount. Post the Return Order.

G/L Entry
The program creates the following entry: Particulars Customer CENVAT Cr. Receivable CENVAT Cr. Receivable Freight Sales Tax Sales Invoice Rounding Type CR DR DR DR DR DR CR Amount(Rs) 24392 1630 1304 2217.49 2464 16776.91 0.40
Calculation of excise, VAT and charges on the following basis: Excise % is 16.30, VAT % is 12.50 and Charges % is 10. In Structure, the excise will be calculated on base value, VAT will be calculated based on the sum of base value and excise amount, and charges will be calculated based on the sum of base value, excise amount and VAT amount. For the First Line Sales Return Order line Unit Price Excl. VAT: Line Amount Excl. VAT: 677.691 6,776.91
In this case excise will be calculated on MRP. MRP Price is 1000 per unit, Quantity is 10. Total MRP price is 10000 (1000*10) On 10000 Abatement % is 20. 10000*20% = 2000. 10000-2000 = 8000 On 8000, the program will calculate excise @ 16.30%. 8000*16.30% = 1304. Excise Amount is 1304 and Excise base amount is 8000. On 8080.91 (6,776.91+1304), the program has calculated 12.50 as VAT 8080.91*12.50% = 1010 = VAT Amount (After rounding nearest to Rupee 1) On 9090.91 (8080.91+1010), the program has calculated 10% as Charges 9090.91*10% = 909.09 = Charges Amount Now Excise Amount is 1304, VAT Amount is 1010 and Charges Amount is 909.09
For the Second Line Line Amount is 10000 On 10000, the program has calculated excise @ 16.30%. 10000*16.30% = 1630 Excise Amount On 11630 (10000+1630), the program has calculated VAT @ 12.50% 11630*12.50% = 1454 = VAT Amount. On 13084 (11630+1454), the program has calculated charges @ 10% 13084*10% = 1308.40 = Charges Amount. Now Excise Amount is 1630, VAT Amount is 1454 and Charges Amount is 1308.40
The program will also create two excise entries and two detailed tax entries. In Posted Return Receipt the program will create RG 23 A Part I & II entries.
Note 1: You can also post the transaction from the Sales Credit Memo. Note 2: You can also post the same transaction for the capital Item. Note 3: In this case the user can define the same structure as line structure and header structure.
Modifications in Line Structure in case of Price Inclusive of Tax through Sales Order
In the Structure window below the Excise, Sales tax and Charges are defined. For the Calculation Order 1 & 2, Include PIT Calculation field has a check mark. For the Calculation Order 3, Charges Calculation Type is Fixed, Calculation Value is 100, and Include PIT Calculation field is unchecked.
To calculate excise, VAT and Charges, fill the fields in the Sales Order form as follows: On the Header: Buy from Vendor No: Location: On the Line: Type: No.: Description: Quantity: Unit of Measure code: Location: Price Inclusive of Tax: Item 1100 Front Wheel 10 PCS blue Check Mark (The program will by default populate this value either from the Item Card or from the Sales Price Card) PIT- ALL (The program will by default populate this value either from the Item Card or from the Sales Price Card) 1000(The program will by default populate this value either from the Item Card or from the Sales Price Card) Blank Blank 10000 Blue
PIT Structure:
The Unit Price Excl. VAT and Line Amount Excl. VAT fields will be blank before calculating structure.
Now clicks the Line menu button and select Structure menu item.
The program will open the Structure Order Details PIT window.
In this window, the Calculation Value field is editable and you can make the changes in the existing values for the line against which the Include PIT Calculation field is unchecked. Change the calculation value from 100 to 200 for the third line against which the Include PIT Calculation is unchecked.
Close the form Calculate Structure
After calculating structure, the program will populate the values in the Unit Price Excl. VAT and Line Amount Excl. VAT fields. The program will calculate Unit Price excl. VAT, multiply unit price with quantity, and then will populate the amount in the Line Amount Excl. VAT field. Sales Order line Unit Price Excl. VAT: Line Amount Excl. VAT: 764.30 7,643.00
Press F9 to view the Sales Order Statistics window.
In Sales Order Statistics window, the program will show the Excise Amount, Tax (VAT) Amount and Charges Amount. The program has calculated charges amount as 200 that is changed earlier in the Structure Order Details PIT though it was 100 in the Structure Masters. Post the Order.

G/L Entry
The program creates the following entry: Particulars Customer Excise Payable Sales Tax Freight Sales Type DR CR CR CR CR Amount(Rs) 10200 1246 1111 200 7643
Calculation of excise, VAT and charges on the following basis: Excise % is 16.30; VAT % is 12.50 and Charges is 200. In Structure, the excise will be calculated on base value, VAT will be calculated based on the sum of base value and excise amount, and charges are fixed with value as: 200. Sales Order line Unit Price Excl. VAT: Line Amount Excl. VAT: 764.30 7,643.00
On 7643, the program has calculated 16.30% as Excise. 7643*16.30% = 1246 = Excise Amount (After rounding nearest to Rupee 1) On 8889 (7643+1246), the program has calculated 12.50 as VAT 8889*12.50% = 1111 = VAT Amount (After rounding nearest to Rupee 1) Charges Amount is fixed as 200.
Now Excise Amount is 1246, VAT Amount is 1111 and Charges Amount is 200
The program will create excise entry with excise base amount as 7643 and will also create Detailed Tax Entry for VAT Amount. In the Posted Shipment, the program will create RG 23 A part I entry with Quantity sold as 10. Note 1: You can also post the transaction from the Sales Invoice/Return Order/Credit Memo. Note 2: You can also post the same transaction for capital Item with a check mark in the Claim Deferred Excise field. Note 3: You can also change the calculation value for all calculation type. For example: Percentage, Fixed Value and Amount per Quantity. Note 4: You can only change the calculation value for that calculation order line against which Include PIT Calculation field is unchecked.
Appendix
Case 1 MRP
Take an example of product A, which has been sold to the customer X for Rs100 per piece. MRP printed on the product pack is Rs 200, abatement % is 40%, excise rate is 10%, and VAT rate is 10%. In this case excise computation will be as follows: Particulars Basic Price Excise duty VAT Total Amount (Rs) 100 12 (Rs200-(40%of200))*10/100) 11.2(100+12)*10/100) 123.20
Case 2 PIT
Product: A Price inclusive of taxes: Rs200 Excise: 10% VAT: 5% Excise amount will be computed by making the following formula: Lets price is X on which excise duty will be calculated: Rs 200 = X + 10% of X + 5% on (X +10% on X) 200 = X+.100X + .05 (1.1X) 200 = X+.100X +.055X 200=1.155X X = 200/1.155 = 173.16 Now excise amount will be =10% on 173.16 =17.32 VAT will be5% on (173.16+17.32) = 9.52 Now the invoice will be as follows: Basic price = 173.16 Excise = 17.32 VAT = 9.52 Total= 200.00
Case 3 MRP + PIT

Product: A MRP: Rs 200
Price inclusive of taxes: Rs200 Abatement: 40% Excise: 10% Excise amount will be: 10% of 120 (200-40%of200) =12 Now the invoice will be as follows: Basic price = 188 Excise = 12 Total= 200
Case 4
Take another example of products A and B, which have been sold to Customer XYZ. Product As selling price is inclusive of tax and product B is without price inclusive of tax. Details of selling price and defined structure for price inclusive of tax are given below: Selling price of A = Rs 100 (including taxes) Selling price of B = Rs 200 (excluding taxes) Structure 1 = Price inclusive tax structure for product A-includes (Excise, VAT, charges Rs 10) Structure 2 = for product B includes (Excise, VAT) Excise rate is 10 % and VAT rate is 5 %. Now the program will consider structures defined on the line for price inclusive tax, means Structure I for product A and Structure 2 for product B. Excise and VAT calculated for the product are as follows: For product A Lets price will be X on which excise duty will be calculated. Rs 100 = X+ (10% of X) + 5%of (X+ (10% of X)) + Rs 10 100 = X + 0.1X + 5% of (X + 0.1X) + 10 100 = X + 0.1X+.05(1.1x) + RS10 90=1.1X +.055X 90=1.155X X=90/1.155=77.92 Now excise amount will be = 10% on 77.92=7.79 VAT will be5% on (77.92+7.79) = 4.29 Now the invoice will be as follows Basic price = 77.92 Excise = 7.79 VAT= 4.29 Charges = 10.00 Total = 100.00
For product B Basic Price = 200 Excise = 20 (10% on Rs 200) VAT = 11(5% on RS 200+Rs 20) Total = 231.00 Invoice raised to customer XYZ will be as follows: Particulars Basic Price Excise VAT Charges Total Amount(Rs) 277.92(200+77.92) 27.79(20+7.79) 15.29(4.29+11.00) 10.00 331.00
Case 5 Take another example of products A and B, which have been sold to Customer XYZ. Product As selling price is inclusive of tax and product B is without price inclusive of tax and it is coming under MRP provision of Excise Act. Details of selling price and defined structure for price inclusive of tax are given below: Selling price of A = Rs 100 (including taxes) Selling price of B = Rs 200 (excluding taxes) MRP is 500 and abatement % is 20% Structure 1 = Price inclusive tax structure for product A-includes (Excise, VAT, charges Rs 10) Structure 2 = for product B includes (Excise, VAT) Excise rate is 10 % and VAT rate is 5 % Now the program will consider the structure defined on the line for price inclusive tax, means Structure 1 for product A and Structure 2 for product B. Excise and VAT calculated for the product are as follows: For product A Lets price will be X on which excise duty will be calculated. Rs 100 = X+ (10% of X) + 5% of (X+ (10% of X)) + Rs 10 100 = X + 0.1X + 5% of (X + 0.1X) + 10 100 = X+0.1X +.05(1.1X) +RS10 90 = 1.1X + .055X 90 = 1.155X X = 90/1.155=77.92
Now excise amount will be = 10% on 77.92=7.79 VAT will be 5% on (77.92+7.79) = 4.29 Now the invoice will be as follows: Basic price = 77.92 Excise = 7.79 VAT = 4.29 Charges = 10.00 Total = 100.00 For product B: Basic Price = 200 Excise = 40 (Rs 500-(20%of 500)*10/100) VAT = 12(5% on RS 200+Rs 40) Total = 252.00 Invoice raised to customer XYZ will be as follows: Particulars Basic Price Excise VAT Charges Total Amount(Rs) 277.92(200+77.92) 47.79(40+7.79) 16.29(4.29+12.00) 10.00 352.00
Microsoft Business Solutions Navision 4.0 Auto Debit to Excise Registers
Table of Contents
Overview............................................................................................................................ 3 Detailed Setup .............................................................................................................. 3 Comprehensive Functionality ..................................................................................... 3 Reports........................................................................................................................... 3 Setup for Auto Debit to Excise Register Functionality................................................ 4 Excise Setup: ................................................................................................................ 4 E.C.C. Nos. ................................................................................................................... 4 Excise No. Series:........................................................................................................ 5 Claim Setoff:.................................................................................................................. 6 Structure: ....................................................................................................................... 6 Transactions...................................................................................................................... 8 Sales Order (in case of RG 23 A).............................................................................. 8 Viewing the Posted Transaction .................................................................12 Sales Order (in case of RG 23 C)............................................................................ 17 Viewing the Posted Transaction .................................................................21 Sales Order (in case of PLA).................................................................................... 26 Viewing the Posted Transaction .................................................................30 Sales Order (in case of Service Tax as Excise Credit) ........................................ 35 Viewing the Posted Transaction .................................................................40
Overview
The Auto Debit to Excise Register functionality enables you to eliminate the Excise liability of a particular sales order or invoice document while posting the document. On transaction level the program will allow you to go to excise claim setoff form to eliminate the liability. You can eliminate the Excise payables with PLA, RG 23 A Part II, RG 23 C Part II and also with Service Tax as Excise Credit.
Detailed Setup
You should prepare the following setups to enable the Auto Debit to Excise Register functionality.
Setup Area Excise Setup Structure Claim Setoff
Description You should setup the excise posting setup and other excise setup. Define structure to calculate the excise amount. Setup eligibility criteria between excise components to claim the excise credit.
Following are the comprehensive functionalities covered under Auto Debit to Excise register: Settlement of excise liability with Personal ledger Account (PLA) through Sales Order/Invoice in case of type Item, Fixed Asset, G/L Account and Charge (Item). Settlement of excise liability with RG 23 A Part II through Sales Order/Invoice in case of type Item, Fixed Asset, G/L Account and Charge (Item). Settlement of excise liability with RG 23 C Part II through Sales Order/Invoice in case of type Item, Fixed Asset, G/L Account and Charge (Item). Settlement of excise liability with Service tax as Excise Credit through Sales Order/Invoice in case of type Item, Fixed Asset, G/L Account and Charge (Item).
Reports
Provision to generate posted Sales Invoices with PLA entry no., RG 23 A part II entry no., RG 23 C part II entry no.
Setup for Auto Debit to Excise Register Functionality

Excise Setup:
In combination of Excise Business Posting Group and Excise Product Posting Group enter the percentages and formula for calculation of excise amount and provide the G/L Account code to affect the financial part.
E.C.C. Nos.
You create the ECC number. Where more than one location is present you could define location-wise ECC number, otherwise one ECC number could be defined and mapped with company, in Company Information setup.
Excise No. Series:

Navigation: Financial Management Setup Excise Excise No. Series
Fill in the fields according to these guidelines: Field Type E.C.C. No. Description No. Series Description Select the RG register type from the dropdown list. Select the relevant ECC number from the list. Provide a description for reference Select the No. Series that you have created.
Claim Setoff:
Navigation: Financial Management Setup Excise Claim Setoff
In the above Claim Setoff window you should define the edibility criteria between excise duty components to eliminate the liability against the available excise credit as par excise duty components. The column heading is denoting the excise credit components and rows are denoting excise liability components. The available credit of a particular duty component could be used when the excise duty component are defined in the rows under a particular column heading.
Structure:
Define a structure that denoting excise.
Transactions
The Auto Debit to Excise Register functionality is available in sales order and invoice. Follow the steps and procedure to execute the Auto Debit to Excise Register in sales order as per the examples given below.
Sales Order (in case of RG 23 A)

Setoff excise liability with credit available in RG 23 A part II through sales order.
Enter the following details on the Sales Order header: Sell-to Customer No. Location Code Structure Choose a customer from the list. Select Yellow location, where ECC No. is mapped in location card. Select a structure denoting Excise
Enter the following details on the Sales Order line: Type No. Direct Debit to PLA / RG Quantity Unit Price Excl. VAT Line Amount Excl. VAT Item 1000 Yes 2 5000 10000
Click Functions Calculate Structure Values Then click Function Direct Debit To PLA / RG.
Program will open Excise Cenvat Claim form as below:
The Excise Cenvat Claim form is displaying the available excise credit amount. It is also displaying the excise liability stands for the particular sales order. Click Detail to utilize the available credit amount against the liability. Program will open Excise Cenvat Claim Detail form as below. In this form you enter the amount in RG 23 A tab. Each of the tabs here in this window is representing the register of excise.
Enter the amount in RG 23 A Part II tab corresponding to the excise duty liability component as par the example given below. RG 23 A BED Amount RG 23 A AED(TTA) Amount RG 23 A AED(GSI) Amount RG 23 A ADET Amount RG 23 A ADE Amount RG 23 A NCCD Amount RG 23 A SAED Amount RG 23 A SED Amount RG 23 A eCESS Amount RG 23 A SHE CESS Amount 1000 20 20 20 20 20 20 20 20 20
The available credit of RG 23 A Part II is completely utilized. The moment you have entered amount the Remaining Liability get reduced to zero. Click Escape to come out from Excise Cenvat Claim Detail window. The Excise Cenvat Claim for will now display as below.
Click escape to come out of Excise Cenvat Claim form. Post the Sales Order.

The posted information of sales order will display the entries which has updated the excise register.
The above window is displaying that the sales order has updated the excise register. Select RG 23 A Part II and click Show.
System will debit the excise duty components which were used in CENVAT claim form. Select G/L Entry and click Show.
The above window has affected the G/L Accounts: Description Customers Domestic Account Excise Payable Account Sales, Retail Dom. Account Excise payable Account CENVAT Cr. Receivable Account Dr/Cr Dr Cr Cr Dr Cr Amount 11,180.00 1,180.00 10,000.00 1,180.00 1,180.00
First System will credit Excise payable account and then transfer the excise payable amount to CENVAT Cr. Receivable account by debiting Excise payable and crediting CENVAT Cr. Receivable A/C as we have setoff the excise payable with RG 23 A part II register. Note: 1. System will allow you to eliminate the liability using Auto Debit to Excise Register functionality for excisable goods and excisable capital goods, also for G/L Account, Fixed Assets and Charge (Item). 2. You can eliminate the liability amount from any of the excise registers or also can use all register according to the availability of credit amount at a time irrespective excise register. 3. Program will validate eligibility criteria you have defined in the Claim Setoff form while utilizing the available excise credit amount. 4. In case of non excisable item program will not open the Excise Cenvat Claim form.
5. If you make a partial shipment in the sales order line the program will calculate and populate the partial liability amount in Excise Cenvat Claim form on executing Auto Debit to Excise Register. 6. You can also post the same transaction from Sales Invoice. 7. At the same time you can utilize the credit of PLA, RG 23 C part II and service as excise credit.
Generation of posted sales invoice with RG 23 A part II entry no. through posted sales invoice by clicking Print menu button and select print invoice.
In the invoice system will update the RG 23 A part II entry no.
Sales Order (in case of RG 23 C)

Setoff excise liability with credit available in RG 23 C part II through sales order.
Enter the following details on the Sales Order line: Type No. Direct Debit To PLA / RG Quantity Item 70076 Yes 1
Unit Price Excl. VAT Line Amount Excl. VAT
10000 10000
The Excise Cenvat Claim form is displaying the available excise credit amount. It is also displaying the excise liability stands for the particular sales order. Click Detail to utilize the available credit amount against the liability. Program will open Excise Cenvat Claim Detail form as below. In this form you enter the amount in RG 23 C tab. Each of the tabs here in this window is representing the register of excise.
Enter the amount in RG 23 C Part II tab corresponding to the excise duty liability component as par the example given below. RG 23 C BED Amount RG 23 C AED(TTA) Amount RG 23 C AED(GSI) Amount RG 23 C ADET Amount RG 23 C ADE Amount RG 23 C NCCD Amount RG 23 C SAED Amount RG 23 C SED Amount RG 23 C eCESS Amount RG 23 C SHE CESS Amount 1000 20 20 20 20 20 20 20 20 20
The available credit of RG 23 C Part II is completely utilized. The moment you have entered amount the Remaining Liability get reduced to zero. Click Escape to come out from Excise Cenvat Claim Detail window. The Excise Cenvat Claim for will display as below.
Click escape to come out of Excise Cenvat Claim form. Post the Sales Order.

The above window is displaying that the sales order has updated the excise register. Select RG 23 C Part II and click Show.
System will debit the excise duty components which were used in CENVAT claim form.
Select G/L Entry and click Show.
The above window has affected the G/L Accounts: Description Customers Domestic Account Excise Payable Account Sales, Retail Dom. Account Excise payable Account CENVAT Cr. Receivable Account Dr/Cr Dr Cr Cr Dr Cr Amount 11,180.00 1,180.00 10,000.00 1,180.00 1,180.00
First System will credit Excise payable account and then transfer the excise payable amount to CENVAT Cr. Receivable account by debiting Excise payable and crediting CENVAT Cr. Receivable A/C as we have setoff the excise payable with RG 23 C part II register. Note: 1. System will allow you to eliminate the liability using Auto Debit to Excise Register functionality for excisable goods and excisable capital goods, also for G/L Account, Fixed Assets and Charge (Item). 2. You can eliminate the liability amount from any of the excise registers or also can use all register according to the availability of credit amount at a time irrespective excise register. 3. Program will validate eligibility criteria you have defined in the Claim Setoff form while utilizing the available excise credit amount. 4. In case of non excisable item program will not open the Excise Cenvat Claim form.
5. If you make a partial shipment in the sales order line the program will calculate and populate the partial liability amount in Excise Cenvat Claim form on executing Auto Debit to Excise Register. 6. You can also post the same transaction from Sales Invoice. 7. At the same time you can utilize the credit of PLA, RG 23 A part II and service as excise credit. Generation of posted sales invoice with RG 23 A part II entry no. through posted sales invoice by clicking Print menu button and select print invoice.
Sales Order (in case of PLA)

Setoff excise liability with credit available in PLA through sales order.
Enter the following details on the Sales Order line: Type No. Direct Debit To PLA / RG Quantity Unit Price Excl. VAT Line Amount Excl. VAT Item 1000 Yes 2 5000 10000
Then click Function Direct Debit To PLA / RG.
The Excise Cenvat Claim form is displaying the available excise credit amount in PLA. It is also displaying the excise liability stands for the particular sales order. Click Detail to utilize the available credit amount against the liability. Program will open Excise Cenvat Claim Detail form as below. In this form you enter the amount in PLA tab. Each of the tabs here in this window is representing the register of excise.
Enter the amount in RG 23 C Part II tab corresponding to the excise duty liability component as par the example given below. PLA BED Amount PLA AED(TTA) Amount PLA AED(GSI) Amount PLA ADET Amount PLA ADE Amount PLA NCCD Amount PLA SAED Amount PLA SED Amount PLA eCESS Amount PLA SHE CESS Amount 1000 20 20 20 20 20 20 20 20 20
The available credit of PLA is partially utilized. The moment you have entered amount the Remaining Liability get reduced to zero. Click Escape to come out from Excise Cenvat Claim Detail window. The Excise Cenavt Claim form will display as below.
Again click escape to come out of Excise Cenvat Claim form. Post the Sales Order.

The above window is displaying that the sales order has updated the excise register. Select PLA Entry and click Show.
System will debit the excise duty components which were used in CENVAT claim form. Select G/L Entry and click Show.
The above window has affected the G/L Accounts: Description Customers Domestic Account Excise Payable Account Sales, Retail Dom. Account Excise payable Account PLA Account Dr/Cr Dr Cr Cr Dr Cr Amount 11,180.00 1,180.00 10,000.00 1,180.00 1,180.00
First System will credit Excise payable account and then transfer the excise payable amount to CENVAT Cr. Receivable account by debiting Excise payable and crediting PLA A/C as we have setoff the excise payable with PLA register. Note: 1 System will allow you to eliminate the liability using Auto Debit to Excise Register functionality for excisable goods and excisable capital goods, also for G/L Account, Fixed Assets and Charge (Item). You can eliminate the liability amount from any of the excise registers or also can use all register according to the availability of credit amount at a time irrespective excise register. Program will validate eligibility criteria you have defined in the Claim Setoff form while utilizing the available excise credit amount. In case of non excisable item program will not open the Excise Cenvat Claim form.
3 4
If you make a partial shipment in the sales order line the program will calculate and populate the partial liability amount in Excise Cenvat Claim form on executing Auto Debit to Excise Register. You can also post the same transaction from Sales Invoice. At the same time you can utilize the credit of RG 23 A part II, RG 23 C part II and service as excise credit.
6 7
Generation of posted sales invoice with RG 23 A part II entry no. through posted sales invoice by clicking Print menu button and select print invoice.
Sales Order (in case of Service Tax as Excise Credit)

Service Tax as Excise Credit
Execute the service tax as Excise credit batch job to utilize the service tax credit in elimination of excise liability. The Auto Debit to Excise Register functionality will also work in this scenario.
Navigation: Financial Management General Ledger Periodical Activity Service Tax Service as Excise Credit
The service tax credit amount of marked record will available now in Excise Cenvat Claim form, which could be utilized against elimination of the excise liability.
Enter the following details on the Sales Order line: Type No. Direct Debit To PLA / RG Quantity Unit Price Excl. VAT Line Amount Excl. VAT Item 1000 Yes 1 5000 5000
The Excise Cenvat Claim form is displaying the available excise credit amount as Service as Excise Credit. It is also displaying the excise liability stands for the particular sales order.
Enter the amount in Service Tax column and corresponding to the excise duty liability component as par the example given below. PLA BED Amount PLA AED(TTA) Amount PLA AED(GSI) Amount PLA ADET Amount PLA ADE Amount PLA NCCD Amount PLA SAED Amount PLA SED Amount PLA eCESS Amount PLA SHE CESS Amount 500 10 10 10 10 10 10 10 10 10
The available service as excise credit is partially utilized. Click Escape to come out from Excise Cenvat Claim window.
Post the Sales Order.

Select G/L Entry and click Show.
The above window has affected the G/L Accounts: Description Customers Domestic Account Excise Payable Account Sales, Retail Dom. Account Excise payable Account Service Tax Recoverable Account Dr/Cr Dr Cr Cr Dr Cr Amount 5,590.00 590.00 5,000.00 590.00 590.00
First System will credit Excise payable account and then transfer the excise payable amount to CENVAT Cr. Receivable account by debiting Excise payable and crediting Service Tax Recoverable A/C as we have setoff the excise payable with Service Tax as Excise Credit. Note: 1 2 To utilize the Service Tax as Excise Credit you should execute the Service Tax as Excise batch job in periodical activity. System will allow you to eliminate the liability using Auto Debit to Excise Register functionality for excisable goods and excisable capital goods, also for G/L Account, Fixed Assets and Charge (Item). You can eliminate the liability amount from any of the excise registers or also can use all register according to the availability of credit amount at a time irrespective excise register. Program will validate eligibility criteria you have defined in the Claim Setoff form while utilizing the available excise credit amount. In case of non excisable item program will not open the Excise Cenvat Claim form. If you make a partial shipment in the sales order line the program will calculate and populate the partial liability amount in Excise Cenvat Claim form on executing Auto Debit to Excise Register. You can also post the same transaction from Sales Invoice. At the same time you can utilize the credit of PLA, RG 23 A part II and RG 23 C part II.
4 5 6
7 8
Appendix
The XYZ Limited Company is trader of excisable materials. XYZ Limited keeps updating the excise register on regular basis and on a given moment decided to eliminate the liability from the sales transaction level. According to the excise register XYZ limited has got the following available excise credit. Excise Duty Component BED Amount AED(TTA) Amount AED(GSI) Amount ADET Amount ADE Amount CESS Amount NCCD Amount SAED Amount SED Amount eCESS Amount SHE CESS Amount RG 23 A 12000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 RG 23 C 10000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 PLA 15000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000
Xyz Limited is preparing an invoice to sale the excisable commodity to its client. The excise duty component is calculated for the sales invoice is as below. RG 23 A BED Amount RG 23 A AED(TTA) Amount RG 23 A AED(GSI) Amount RG 23 A ADET Amount RG 23 A ADE Amount RG 23 A NCCD Amount RG 23 A SAED Amount RG 23 A SED Amount RG 23 A eCESS Amount RG 23 A SHE CESS Amount 10000 200 200 200 200 200 200 200 200 200
XYZ Limited is decided to eliminate the excise liability, calculated on the invoice, directly from the sales invoice level. Using the Auto Debit to Excise Register functionality XYZ has utilized the available credit to eliminate the liability. XYZ has utilized the available credit of RG 23 A. The excise register will be updated automatically on posting the sales invoice. XYZ if again decide to use Auto Debit to Excise Register functionality the excise register will display the following (considering there is no input purchase occurred in between). Excise Duty Component RG 23 A RG 23 C PLA
BED Amount AED(TTA) Amount AED(GSI) Amount ADET Amount ADE Amount CESS Amount NCCD Amount SAED Amount SED Amount eCESS Amount SHE CESS Amount
2000 4800 4800 4800 4800 4800 4800 4800 4800 4800 4800
10000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
15000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000
Microsoft Business Solutions Navision 4.0- Excise Registers Serial Numbers
Table of Contents
Overview...............................................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................3 Setup for Excise Registers Serial Numbers Functionality .....................................3 No. Series: ........................................................................................................3 E.C.C. Nos. .......................................................................................................4 Excise No. Series ..............................................................................................5 Purchase Transactions .........................................................................................6 Purchase Order for RG 23A Part I & Part II entry..............................................6 Viewing the Posted Transaction ....................................................................7 Purchase Order for RG 23C Part I & Part II entry............................................10 Viewing the Posted Transaction ..................................................................11 Purchase Order for RG 23D entry ...................................................................14 Viewing the Posted Transaction ..................................................................15 Sales Transactions .............................................................................................17 Sales Order .....................................................................................................17 Viewing the Posted Transaction ..................................................................18 When to Use Excise Register Series Number? ..................................................21
Overview
Transactions of excisable goods are recorded in the RG 23A Part I, RG 23A Part II, RG 23C Part I, RG 23C Part II, and RG 23D registers. The program keeps track of all inward and outward transactions using the user defined number series for the specific RG register. A number series either can be mapped against multiple locations or the separate number series can be mapped for separate location ECC number, based on the business need.
Detailed Setup
You use the following setups to enable the Excise Registers Serial Numbers functionality in the program. Setup Area No. Series E.C.C. Nos. Excise No. Series Description Define the number series to be used in the Excise No. Series window. Define the ECC number to be used in the Excise No. Series window. Define the series for each location ECC number.
The Excise Registers Serial Numbers functionality enables you to store the purchase or sales transaction with the defined number series in the RG 23A, RG 23C, and RG 23D tables.
Setup for Excise Registers Serial Numbers Functionality

No. Series:
Navigation: Financial Management Setup No. Series
Create the No Series which are used in the RG registers. You can define the number series based on the type of register.
Fill in the fields according to these guidelines: Field Code Description Starting No. Description Define a code for the number series. Define a description for reference. Enter the starting number for the number series. This number can be alphanumeric. Enter the end number. The number series will be expired the moment it reaches to the end number. The program will update this field. The program will update this field. Place a check mark in this field so that the program can use the number series as default one. Place a check mark in this field so that the program can use manual numbers in the defined series. Place a check mark in this field so that the program can use number series according to the date.
Ending Date
Last Date Used Last No. Used Default Nos.
Manual Nos.
Date Order
E.C.C. Nos.
Create the ECC number here. If more than one location is available then you can define ECC number based on location, otherwise you can define one ECC number and can map it with company, in the Company Information setup.
Excise No. Series

Navigation: Financial Management Setup Excise Excise No. Series
Fill in the fields according to these guidelines: Field Type E.C.C. No. Description No. Series Description Choose the RG register type from the dropdown list. Choose the relevant ECC number from the list. Define a description for the reference. Choose the number series that you have created.
The purchase receipt or invoice transaction will be recorded in RG 23A Part I, RG 23A Part II, RG 23C Part I, RG 23C Part II, and RG 23D registers according to the nature of the product. In the following transaction the purchase receipt and invoice entry are discussed, where the excise registers are updated with user defined number series.
Purchase Order for RG 23A Part I & Part II entry

Enter the following details on the Purchase Order header: Buy-from Vendor No. Structure Location Code Choose a vendor from the list. Choose the structure as Excise Choose the location as Blue on the Shipping tab (Location code must be attached with the relevant ECC No. in the Location Card)
Enter the following details on the Purchase Order line: Type No. Quantity Direct Unit Cost Excl. VAT Item 1000 10 1000
Click Functions Calculate Structure Values Post the purchase order as Receive and Invoice.

The posted information of purchase receipt will display the excise register entries.
Navigation: Purchases History Posted Receipt
In the above window you can see that there are two excise entries one is for RG 23A Part I and the other one is for RG 23A Part II. Select the RG 23A Part I line in the Navigate form and then click Show to view the excise register number series. The RG Entry No. field shows the excise register number series that you have defined in the Excise No. Series setup.
Again select the RG 23A Part II line in the Navigate form and then click Show to view the excise register number series. The RG Entry No. field shows the excise register number series that you have defined in the Excise No. Series setup.
Note: 1. Serial number is used in Purchase Order / Invoice, in case the Type field is selected either as Item or as Fixed Assets on the purchase order line. 2. Serial number is used in Purchase Order / Invoice, where the item or fixed asset is defined as excisable material. 3. Serial number is used in Purchase Order / Invoice, in case the Supplementary field has a check mark on the purchase order line and the Type is selected as Charge (Item).
Purchase Order for RG 23C Part I & Part II entry

Enter the following details on the Purchase Order header: Buy-from Vendor No. Structure Location Code Choose a vendor from the list. Choose the structure as Excise Choose the location as Blue on the Shipping tab (Location code must be attached with the relevant ECC No. in the Location Card)
Enter the following details on the Purchase Order line: Type No. Quantity Direct Unit Cost Excl. VAT Item 70076 (which is a capital item) 10 10020
Click Functions Calculate Structure Values Post the purchase order as Receive and Invoice.

The posted information of purchase receipt will display the excise register entries.
Navigation: Purchases History Posted Receipt
In the above window you see that there are two excise entries one is for RG 23C Part I and the other one is for RG 23C Part II. Select the RG 23CPart I line in the Navigate form and then click Show to view the excise register number series. The RG Entry No. field shows the excise register number series that you have defined in the Excise No. Series setup.
Again select the RG 23C Part II line in the Navigate form and then click Show to view the excise register number series. The RG Entry No. field shows the excise register number series that you have defined in the Excise No. Series setup.
Note: 1. Serial number is used in Purchase Order / Invoice, in case the Type field is selected either as Item or as Fixed Assets on the purchase order line. 2. Serial number is used in Purchase Order / Invoice, where the item or fixed asset is defined as excisable material. 3. Serial number is used in Purchase Order / Invoice, in case the Supplementary field has a check mark on the purchase order line and the Type field is selected as Charge (Item).
Purchase Order for RG 23D entry

Enter the following details on the Purchase Order header: Buy-from Vendor No. Structure Location Code Choose a vendor from the list. Choose the structure as Excise Choose the location as Blue on the Shipping tab (Location code must be attached with the relevant ECC No. and Trading Location field must have a check mark in the Location Card) Place a check mark in this field on the Invoice tab
Trading
Enter the following details on the Purchase Order line: Type No. Quantity Direct Unit Cost Excl. VAT Item 1000 10 1000
Post the purchase order as Receive and Invoice.

The posted information of purchase invoice will display the excise register entries.
Select the RG 23 D line in the Navigate form and then click Show to view the excise register number series. The RG Entry No. field shows the excise register number series that you have defined in the Excise No. Series setup.
Note: 1. For RG 23 D you should place a check mark in the Trading field in Location and should also place a check mark in the Trading field in Order / Invoice. 2. Serial number is used in Purchase Order / Invoice, in case the Type field is selected either as Item or as Fixed Assets on the purchase order line. 3. Serial number is used in Purchase Order / Invoice, where the item or fixed asset is defined as excisable material. 4. Serial number is used in Purchase Order / Invoice, in case the Supplementary field has a check mark on the purchase order line and the Type field is selected as Charge (Item).
Sales Transactions
The sales shipment transaction of input item will be recorded in the RG 23A Part I. In the following transaction the sales shipment entry is discussed, where the excise register is updated with user defined number series.
Sales Order
Enter the following details on the Sales Order header: Sell-to Customer No. Structure Location Code Choose a customer from the list. Choose a structure denoting Excise Choose the location as Blue on the Shipping tab (Location code must be attached with the relevant ECC No. in the Location Card)
Enter the following details on the Sales Order line: Type No. Quantity Unit Price Excl. VAT Item 1000 10 4000
Click Functions Calculate Structure Values Post the sales order as Ship and Invoice.

The posted information of sales shipment will display the excise register entries.
Navigation: Sales & Marketing History Posted Shipment
Select the RG 23A Part I line in the Navigate form and then click Show to view the excise register number series. The RG Entry No. field shows the excise register number series that you have defined in the Excise No. Series setup.
When to Use Excise Register Series Number?

1. Excise Register Series Number functionality will be used in the following documents with different conditions as described below. Document Type Purchase Order / Invoice Condition When the Type field is selected either as Item or as Fixed Assets on the purchase order line. When the Supplementary field has a check mark on the purchase order line and the Type field is selected as Charge (Item). When the Type is selected either as Item or as Fixed Assets on the sales order line When Claim Deferred Excise field has a check mark on the sales order line for Item and Fixed Assets When the Direct Debit To PLA / RG field has a check mark on the sales order / invoice line for Item, Fixed Asset, G/L Account, and Charge (Item) When the Type field is selected either as Item or as Fixed Assets on the purchase credit memo or return order line When the Type field is selected either as Item or as Fixed Assets on the purchase order line When shipment or receipt has been made for excisable goods When excisable goods are transferred from the trading location to manufacturing location When any kind of adjustment entry has been made for excisable goods When consumption has been recorded for excisable goods
Sales Order / Invoice
Purchase Credit Return Order
Memo
Sales Credit Memo / Return Order Transfer Order Shipment / Receipt Item Reclass. Journal Item Journal Consumption Journal
2. Excise Register Series Number functionality will be used in the following batch job / functionality Batch Job/ Functionality Claim Deferred Excise Description The Claim Deferred Excise batch job enables you to utilize the deferred excise credit amount. The amount will be credited and the entry will be appeared in RG 23 C register, where the number series will be activated. The Excise Payment functionality creates an entry in Excise Register from the General Journal. The PLA, RG 23 A Part II, and RG 23 C Part II registers will be updated according to the use of excise credit amount. At the time of discharging service tax if you use excise as service credit amount, then the program will create entries in Excise registers and the number series will be generated. If you use the Undo Receipt functionality in case of excisable item, then the program will create entry in Excise registers, where the number series will be generated. If you use the Undo Shipment functionality in case of excisable item, then the program will create entry in Excise registers, where the number series will be generated.
General Journal
Payment of Service Tax
Undo Receipt
Undo Shipment
Microsoft Business Solutions Navision 4.0- Input Service Distributors
Table of Contents
Overview of Functionality......................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................3 Reports..............................................................................................................4 Setups Required ...................................................................................................4 Service Tax Setup .............................................................................................5 Tax Groups .......................................................................................................6 Tax Setup ..........................................................................................................6 Tax Registration Nos.........................................................................................7 General Ledger Setup .......................................................................................8 Locations ...........................................................................................................9 Company Information ........................................................................................9 Calculation of Service Tax in case of Input Service Distributor through the Purchase Order/Invoice...................................................................................11 Viewing the Posted Transaction ..................................................................13 Calculation of Service tax in case of Input Service Distributor through Purchase Return Order/Credit Memo ..............................................................................21 Viewing the Posted Transaction ..................................................................23 Calculation of Service Tax through Journals.......................................................31 Calculation of Service Tax in case of Input Service Distributor through the General Journal...............................................................................................31 Viewing the Posted Transaction ..................................................................33 In case of Service Tax on Advance Payment to Vendor .................................41 Viewing the Posted Transaction ..................................................................43 Viewing the Posted Transaction ..................................................................47 Calculation of Service Tax on G/L to G/L/Bank in case of Input Service Distributor ........................................................................................................51 Viewing the Posted Transaction ..................................................................52 Updating Opening Balance of Service Tax in case of Input Service Distributor ........................................................................................................................57 Viewing the Posted Transaction ..................................................................59 Adjustment of Service Tax in case if Input Service Distributor ........................65 Viewing the Posted Transaction ..................................................................67 Adjust Service Tax Credit ...................................................................................70 Adjustment in case of Input Service Distributor Entries...................................71 Adjustment in case of Normal Service Tax Entries..........................................72 Service Tax Distribution ......................................................................................74 Distribution of Input Service Tax to Three Different Locations ........................78 Viewing the Posted Transaction ..................................................................81 Distribution of Service Tax Amount to Taxable and Non Taxable Locations .103 Viewing the Posted Transaction ................................................................105 Reports .............................................................................................................115 Input Service Distribution Register ................................................................115 Service Tax Distribution Invoice/Challan .......................................................116 Appendix...........................................................................................................118
Input Service Distributor functionality enables you to distribute the input service tax credit to different units/branches. CENVAT Credit Rules 2004 provide the facility to distribute the service tax credit on input services to the branches/ head office, which can be utilized in the payment of excise/ service tax. Several manufacturing or service providing units, scattered geographically, work under a head office. The head office either incurs common expenses or procures services (inputs) centrally. Head office even clears all bills for supplies or services centrally. There is facility provided by law to distribute the service tax credit to other units. This feature will facilitate in transferring the service tax credit to other units by issuing the required invoice / bill / challan.
Detailed Setup
Following Setup is required to enable the Input Service Distributor functionality. Setup Area Service Tax Setup Location Company Information General Ledger Setup Description Define the Service Tax Setup, Group Code, and Registration Number. Place a check mark in the Input Service Distributor field in the Location card. Place a check mark in the Input Service Distributor field in the Company Information master. Assign number series for service tax distribution and posted service tax distribution.
Following comprehensive functionalities are covered under Input Service Distributor: Provision to calculate service tax in purchase transactions for Input Service Distribution. Provision to calculate service tax in case advance payment is made to vendor for Input Service Distribution.
Provision to calculate service tax in case of General Ledger for Input Service Distribution. Provision to enter the opening balances of service tax in case of Input Service Distributor. Provision to make positive and negative adjustments in the service tax entries related to Input Service Distribution. Provision to adjust the service tax credit. Provision to distribute the input service tax credit to various units / branches / head office. Provision to load the amount of input service tax credit to services account. Provision to generate service tax distribution invoice / challan Provision to generate Input Service Distribution register.
Reports
Provision to generate Input Service Distribution Register and Service Tax Distribution Invoice/Challan.
Setups Required
Followings are the setups required to be entered for Input Service Distributor. Service Tax General Ledger Setup Locations Company Information
Service Tax Setup

Navigation: Financial Management General Ledger Setup Service Tax
Tax Groups
Navigation: Financial Management General Ledger Setup Service Tax Tax Groups
Define the code of service tax groups with description and minor head.
Tax Setup
Navigation: Financial Management General Ledger Setup Service Tax Tax Setup
In Service Tax Setup, select the account numbers for Service Tax Receivable Interim (Distribution) A/C and Service Tax receivable (Distribution) A/C.
Fields Description: Fields S.T. Receivable Account (Dist) Receivable Acc. Interim (Dist) Description Choose the S.T. Receivable Account (Dist) from the lookup list. Choose the Receivable Acc. Interim (Dist) from the lookup list.
Tax Registration Nos.

Navigation: Financial Management General Ledger Setup Service Tax Tax Registration Nos.
Enter the service tax registration number for different locations.

Navigation: Financial Management General Ledger Setup General Ledger Setup
On the Numbering tab, choose the number series for service tax distribution and posted service tax distribution. Fields Description Fields Service Tax Distribution Nos. Description Choose the number series from the lookup list for service tax distribution numbers. When the user press F3 in the Service tax Distribution form, then the program will generate the number from this setup. S.T. Posted Distribution Nos. Choose the number series from the lookup list for posted service tax distribution numbers. When the user post the Service tax Distribution form, then the program will post the document with the number series assigned with this field.
Locations
Fields Description Fields Input Service Distributor Description Place a check in this field so that the program can identify a particular location as Input Service Distributor. When user post the purchase transaction with location code and that location is Input Service Distributor field True, then the program will update the Input Service Distributor field in Service Tax Entry and Service Tax Entry Detail.
Company Information
Fields Description Fields Input Service Distributor Description Place a check mark in this field so that the program can identify the company as Input Service Distributor. If a check mark is placed in the Input Service Distributor field in the Company Information then the program will automatically place a check mark in Input Service Distributor field in the Purchase Order/Invoice and Purchase Return Order/Credit Memo Tax Information tab.
Calculation of Transactions
Service
Tax
through
Purchase
Calculation of Service Tax in case of Input Service Distributor through the Purchase Order/Invoice
Fields Description: Tax Information tab: Fields Input Service Distribution Description By default this field will get a check mark incase you have inserted a check mark in Input Service Distributor field in Company Information or in location card. This field is editable.
To calculate Service Tax, fill the fields in the Purchase Order form as follows: On the Header: Buy from Vendor No: Structure: Location Code: 10000 Service Blue (Place a check mark in the Input Service Distributor field in the Location Card).
On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: Calculate Structure Press F9 to view the service tax amount G/L Account 8410 Advertisement 10 1000 10000
By default the Input Service Distributor field on the Tax Information tab gets a check mark in case the Input Service Distributor field in the Company Information window has been checked. Post the order with Receive and Invoice.

G/L Entry
The program creates the following entry: Particulars Advertisement A/C Service Tax Receivable Interim (Distribution) A/C Vendor Type DR DR CR Amount(Rs) 10000 1236 11236
Calculation of Service Tax The program will calculate the Service Tax based on the following information: Base: Service Tax %: Ecess %: SHE CESS %: Calculation: 10000*12%: 1200*2%: 1200*1%: 1200 (Service tax) 24 (ECESS) 12 (SHE CESS) 10000 12% 2% 1%
Total Service Tax Amount including ECESS and SHE CESS (1200+24+12) = 1236.
Service Tax Entry
In the Service Tax Entry form, the program will update the Location Code field Blue and Input Service Distribution field with value as YES.
Application of Invoice at the time of making payment to vendor through Cash Payment Voucher. (You can also use General Journal)
Select the vendor and apply the invoice number against which you have to make the payment. Post the Cash Payment Voucher. Navigate the posted transaction.
G/L Entry
The program creates the following entry: Particulars Vendor A/C Cash A/C Service Tax Receivable (Distribution) A/C Service Tax Receivable Interim (Distribution) A/C Type DR CR DR CR Amount(Rs) 11236 11236 1236 1236
The program will transfer service tax amount from the Service Tax Receivable Interim (Distribution) account to the Service Tax Receivable (Distribution) account. Also the program will create Service tax Entry Detail in original document (posted purchase invoice). In service tax entry the program will update Amount Received/Paid field.
In Service Entry Detail form, the program will update the Location code Blue and input Service Distributor field with value as YES. Note: 1. Same transaction can be done through Purchase Invoice. 2. If Input Service Distribution field in the Purchase Order/Invoice header has been checked and the Input Service Distributor field in the Location card has not been checked, and you are using location code, then the program will give the error message while posting Purchase Order/Invoice. 3. If Input Service Distribution field in the Purchase Order/Invoice header has not been checked and the Input Service Distributor field in the Location card has
been checked and you are using location code, then the program will give the error message while posting Purchase Order/Invoice. 4. Service tax entries with a check mark in the Input Service Distribution field will not be available for credit while making payment of service tax and excise. 5. Service tax entries with a check mark in the Input Service Distribution field will be available for distribution. 6. Service tax entries related to Input Service Distributor will not be available for service tax as excise credit and for service tax payment in the same location. If you want to take the credit of the entry then you should transfer the entry to other location which is not input service distributor location through the Service tax Distribution form.
Calculation of Service tax in case of Input Service Distributor through Purchase Return Order/Credit Memo
Navigation: Purchases Order Processing Credit Memo.
Tax Information tab Fields Description: Fields Input Service Distribution Description This field will be by default true if you have inserted a check mark in Company Information or in location card. This field is editable.
To calculate Service Tax, fill the fields in the Purchase Credit Memo form as follows: On the Header: Buy from Vendor No: Structure: Location Code:
10000 Service Blue (Place a check mark in the Input Service Distributor field in the Location Card).
On the Line: Type: No.: Description: G/L Account 8410 Advertisement
Quantity: Direct Unit Cost: Line Amount: Calculate Structure
10 1000 10000
Press F9 to view the service tax amount By default the Input Service Distributor field on the Tax Information tab will be checked if the Input Service Distributor field in the Company Information window is checked. Post the Credit memo.

G/L Entry
The program creates the following entry: Particulars Advertisement A/C Service Tax Receivable Interim (Distribution) A/C Vendor Type CR CR Amount(Rs) 10000 1236
DR
11236
Calculation of Service Tax The program will calculate the Service Tax based on the following information: Base: Service tax %: Ecess %: SHE CESS %: Calculation: 10000*12%: 1200*2%: 1200*1%: 1200 (Service tax) 24 (ECESS) 12 (SHE CESS) 10000 12% 2% 1%
Service Tax Entry
In the Service Tax Entry window, the program will update Location Code Blue and update Input Service Distribution field with YES.
Application of Credit memo at the time of receiving refund from vendor through Cash Receipt Voucher (You can also use General Journal)
Select the vendor and apply the credit memo number against which you have to receive the payment. Post the Cash Receipt Voucher. Navigate the posted transaction.
G/L Entry
The program creates the following entry: Particulars Vendor A/C Cash A/C Service tax receivable (Distribution) A/C Service Tax Receivable Interim (Distribution) A/C Type CR DR CR DR Amount(Rs) 11236 11236 1236 1236
The program will transfer service tax amount from the Service Tax Receivable Interim (Distribution) account to the Service Tax Receivable (Distribution) account. Also the program will create service tax entry details in the original document (posted Credit memo). In the Service Tax Entry winodw the program will update the Amount Received/Paid field.
In the Service Entry Detail window the program will update the Location Code Blue and update input service distributor field with YES. Note: 1. Same transaction can be done through the Purchase Return Order. 2. If Input Service Distribution field in the Purchase Return Order/Credit Memo header has been checked and the Input Service Distributor field in the Location card has not been checked, and you are using location code, then the program will give the error message while posting Purchase Return Order/Credit Memo.
3. If Input Service Distribution field in the Purchase Return Order/Credit memo header has not been checked and Input Service Distributor field in the Location card has been checked, and you are using location code, then the program will give the error message while posting Purchase Return Order / Credit Memo.
Calculation of Service Tax through Journals

Calculation of Service Tax in case of Input Service Distributor through the General Journal
In case of Creating Invoice to Vendor. Navigation: Financial management General Ledger General Journals
The user has to assign the Input Service Distributor location to the batch which is in the use (by the user). The location should have Input service distributor True. If the Location Code field is blank then the program will collect the data from the Company Information.
To calculate Service Tax, fill the fields in the general journal line as follows: Document Type: Account Type: Account No.: Service Tax Group Code: Service tax Registration No.: Amount: Bal. Account Type: Bal Account No.: Post the Document. Invoice Vendor 10000 (vendor code) Adv BJX118910100578 -10000 G/L Account 8410 (Advertisement A/C)

G/L Entry
The program creates the following entry: Particulars Advertisement A/C Service Tax Receivable Interim (Distribution) A/C Vendor Type DR DR CR Amount(Rs) 10000 1236 11236
Calculation of Service Tax The program will calculate the Service Tax based on the following information: Base: Service tax %: Ecess %: SHE CESS %: Calculation: 10000*12%: 1200*2%: 1200*1%: 1200 (Service tax) 24 (ECESS) 12 (SHE CESS) 10000 12% 2% 1%
Service Tax Entry
In the Service Tax Entry window, the program will update the Location Code Blue and update Input Service Distribution field with YES.
Application of Invoice at the time of making payment to vendor through Cash Payment Voucher. (You can also use the General Journal)
Select the vendor and apply the invoice number against which you have to make the payment. Post the Cash payment Voucher. Navigate the posted transaction
G/L entry
The program creates the following entry: Particulars Vendor A/C Cash A/C Service tax receivable (Distribution) A/C Service Tax Receivable Interim (Distribution) A/C Type DR CR DR CR Amount(Rs) 11236 11236 1236 1236
The program will transfer the service tax amount from the Service Tax Receivable Interim (Distribution) account to the Service Tax receivable (Distribution) account. Also the program will create the service tax entry details in the original document. In the Service Tax Entry window the program will update the Amount Received/Paid field.
Service Tax Entry Details
In the Service Entry Detail window the program will update the Location Code Blue and update the Input Service Distribution field with YES. Note: 1. Same transaction can be done through the Journal Voucher. 2. Service Tax entries with a check mark in the Input Service Distribution field will not be available for credit while making payment of service tax and excise. 3. Service tax entries with a check mark in the Input Service Distribution field will be available for the distribution.
4. At the time of application there should be same location code in the batch which has been used at the time of making invoice and that location should have input service distributor field true.
In case of Service Tax on Advance Payment to Vendor

To calculate Service Tax, fill the fields in the Cash Voucher lines as follows:
First Line
Document Type: Serv. Tax on Advance Payment: Account Type: Account No.: Service Tax Group Code: Service tax Registration No.: Debit Amount: Payment True Vendor 10000 (vendor code) Adv BJX118910100578 10000
Second Line
Document Type: Account Type: Account No.: Credit Amount: Post the Document. Payment G/L Account 2910 (Cash) 10000

G/L entry
The program creates the following entry: Particulars Vendor A/C Cash A/C Service Tax Entry Type DR CR Amount(Rs) 10000 10000
In the Service Tax Entry window, the program will update Location Code Blue and update Input Service Distribution field with YES.
Application of payment at the time of making invoice to vendor through Purchase Order/Invoice
Fill the fields in the Purchase Order form as follows: On the Header: Buy from Vendor No: Structure: Location Code: Applies to Doc. Type: Applies-to Doc. No: On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: Calculate Structure G/L Account 8410 Advertisement 1 8899.96 8899.96 10000 Service Blue (Place a check mark in Input Service Distributor Field in the Location Card). Payment 1023
Press F9 to view the service tax amount In this case the program will not calculate service tax as it has already been calculated at the time of making advance payment to vendor. By default the Input Service Distributor field on the Tax Information tab will be checked, if the Input Service Distributor field in the Company Information window has been checked. Post the order with Receive and Invoice.

G/L Entry
The program creates the following entry: Particulars Advertisement A/C Service tax receivable (Distribution) A/C Vendor A/C Type DR DR CR Amount(Rs) 8899.96 1100.04 10000
The program will debit the Service Tax Receivable (Distribution) A/C. Also the program will create service tax entry detail in the original document. In the Service Tax Entry window the program will update the Amount Received/Paid field.
In the Service Entry Detail window the program will update Location code Blue and update input service distributor field with YES. Note: 1. Same transaction can be done through the Bank Payment Voucher. 2. Service tax entries with a check mark in the Input Service Distribution field will not be available for credit while making payment of service tax and excise. 3. Service tax entries with a check mark in the Input Service Distribution field will be available for the distribution.
4. At the time of application there should be same location code in the Purchase Order/Invoice which has been used at the time of making payment and that location should have a check mark in the Input Service Distributor field.
Calculation of Service Tax on G/L to G/L/Bank in case of Input Service Distributor

To calculate Service Tax, fill the fields in the Cash Voucher lines as follows: Document Type: Service Tax Type: Account Type: Account No.: Service Tax Group Code: Service tax Registration No.: TDS/TCS/Service Tax Party Type: TDS/TCS/Service Tax Party: Amount: Bal. Account Type: Bal. Account No.: Post the Document. Payment Purchase G/L Account 8410 (Advertisement) Adv BJX118910100578 Service tax Vendor 10000 (Vendor code) 10000 G/L Account 2910 (Cash)

G/L Entry
The program creates the following entry: Particulars Advertisement A/C Service tax receivable (Distribution) A/C Cash A/C Type DR DR CR Amount(Rs) 10000 1236 11236
Service Tax Entry
In the Service Tax Entry window the program will update the Location Code Blue and update Input Service Distribution field with YES.
Service tax Entry Detail
In the Service Entry Details window, the program will update Location code Blue and update input service distributor field with YES. Note: 1. Same transaction can be done through the Bank Payment Voucher. 2. Service tax entries with a check mark in the Input Service Distribution field will not be available for credit while making payment of service tax and excise.
3. Service tax entries with a check mark in the Input Service Distribution field will be available for the distribution.
Updating Opening Balance of Service Tax in case of Input Service Distributor

You need to enter the opening balance in case vendor invoice and partial payment have been made to the vendor and service tax has been calculated at the time of creating the invoice. Initially enter the opening balance of vendor including service tax amount. Also enter the payments that have been paid to the vendor and apply both entries before entering the opening balances of service tax. In the Service Tax Opening form, select the type as Purchase and select the transaction from the lookup list. After clicking the assist button, the Vendor Ledger Entry window opens, in which you can select the transaction for which you want to update the opening balances of service tax
Enter the following Information in the Service Tax Opening form Type: Transaction No.: Posting Date: Document Type: Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Location Code: Service Tax Base Amount: Service Tax Amount: eCess Amount: SHE CESS Amount: Payable/Receivable Amount: Service Tax %: Service Tax eCess %: Service tax SHE CESS %: ST. Rec./Pay. (Interim)A/C: Bal. Account Type (Interim): Bal. Account No. (Interim): ST. Rec/Pay Account: Amount Received/Paid: Remaining Amount: Remaining eCess Amount: Remaining SHE CESS Amount: Bal. Account type: Bal. Account No.: Purchase 916 (Selected from vendor ledger entry) 09/05/07 Invoice G00113 10000 Adv. BJX118910100578 Blue 10000 1200 24 12 -11236 12 2 1 5948 G/L Account 5948 2950 10000 1068 21.36 10.68 G/L Account 2950

G/L entry
The program creates the following G/L entry: Particulars Service Tax Receivable Interim (Distribution) A/C Service Tax Receivable Interim (Distribution) A/C Service Tax Receivable (Distribution) A/C Service Tax Receivable (Distribution) A/C Type DR CR DR CR Amount(Rs) 1236 1236 1100.04 1100.04
Service Tax Entry
In the Service Tax Entry window the program will update the Location Code field Blue and update Input Service Distribution field with YES.
In the Service Entry Detail window, the program will update the Location Code field Blue and update input service distributor field with YES. Note: 1. Same transaction can be done for the document type Credit memo/Refund. 2. Service Tax entries with a check mark in the Input Service Distribution field will not be available for credit while making payment of service tax and excise. 3. Service tax entries with a check mark in the Input Service Distribution field will be available for the distribution.
4. At the time of updating opening balance the user should select the input service distribution location in the Location Code field of the Service Tax Opening form. 5. The user should select the type as Purchase for updating opening balance of service tax in case of input service distributor.
Adjustment of Service Tax in case if Input Service Distributor

Initially there should be some posted purchase invoice with service tax calculation. The selected transaction has the value for Services % as 10 and eCess % as 1. Now you have to make Service % as 12 and eCess % as 2.
Enter the following fields in the Service Tax Adjustment form. Applied ST Entry No: Type: Posting Date: Document No.: External Document No.: Party Code: Service Tax Group Code: Service Tax Registration No.: Service Tax Base Amount: Applied Document Type: 17 (Selected from service tax entry) Purchase 09/05/07 108231A ADJ004 10000. Adv. HXJ118910111357 10000 Invoice
Applied Document No.: 108231 Applied Posting Date: 09/05/07 Applied ST Base Amount: 10000 Applied Service Tax Amount: 1000 Applied eCess Amount: 10 Applied SHE CESS Amount: 10 Applied Service Tax %: 10 Applied Service Tax eCess %: 1 Applied Service Tax SHE Cess %: 1 New Service Tax %: 12 (New %) New Service Tax eCess %: 2 (New %) Diff Service Tax Amount: 200 Diff Service Tax eCess Amount: 14 Diff Service tax SHE CESS Amount:2 ST. Rec./Pay. Account (Interim): 5948 Bal. Account Type (Interim): Vendor Bal. Account No. (Interim): 10000 Bal. Account Type: G/L Account Bal. Account No.: 2950 Post the Service tax Adjustment Journal.

G/L entry
The program has created the GL entry with difference amount of service tax, eCess and SHE Cess. Service Tax Entry
The program will also create the new service tax entry with a check mark in the Adjusted field. In the Service Tax Entry window the program will update Location Code Blue and update Input Service Distribution field with YES. Note 1: The user can also do the adjustment where the user wants to decrease the Service Tax %, Cess %, SHE Cess % and the same can be done for Purchase Credit memo. The program will create the GL entries and service tax entry accordingly.
Note 2: If the Purchase Invoice has been distributed then no adjustment is allowed. Note 3: The user should select service tax entry with the type as Purchase for doing adjustments in case of input service distributor.
Adjust Service Tax Credit

Navigation: Financial Management General Ledger Periodic Activity Service Tax Adjust Service Tax Credit
In this form the user can adjust the remaining credits of service tax in document type Invoice/Payment with credit memo and refund type Transactions.
Fields Description Field Service Tax Registration No. Description Choose the service tax registration number for which you want to adjust the credit of service tax. Choose the service tax group code for which you want to adjust the credit of service tax. Choose the vendor code for which you want to adjust the credit of service tax. Define the start date. Define the end date.
Vendor Code Start Date End Date
Field Input Service Distributor
Description Place a check mark in this field if you want to adjust the credit of service tax entries related to input service distributor. If this field is unchecked then the program will allow you to adjust the credit of normal service tax entries.
Adjustment in case of Input Service Distributor Entries
Click OK The program will open the Adjust Service Tax Credit form.
Select the combination of positive and negative entries by pressing the Ctrl button on your key board. Click the Function menu button and select the Adjust Credit menu item. The program will adjust the service tax credit. The program will reduce the remaining credits of service tax to zero. Note 1: The user should select the combination of positive and negative at the time of adjustment of service tax entries. Note 2: After adjustment, the program will adjust the remaining service tax, remaining service eCess, and remaining service tax SHE Cess in the Service Tax Entry Detail window for document type Invoice/Payment. Note 3: Adjusted service tax entry detail with some values in remaining credit fields of service tax, eCess and SHE Cess will be available for further distribution. If the remaining credit fields are having zero values then the program will not allow the user to distribute that particular entry.
Adjustment in case of Normal Service Tax Entries
Click OK
The program will open the Adjust Service Tax Credit.
Select the combination of positive and negative entries by pressing the Ctrl button on your key board. Click the Function menu button and select the Adjust Credit menu item. The program will adjust the service tax credit. The program will reduce the remaining credits of service tax to zero. Note 1: The user should select the combination of positive and negative at the time of adjustment of service tax entries. Note 2: After adjustment, the program will adjust the remaining service tax, remaining service eCess, and remaining service tax SHE Cess in the Service Tax Entry Detail window for document type Invoice/Payment. Note 3: Adjusted service tax entry detail with some values in remaining credit fields of service tax, eCess and SHE Cess will be available for Service tax as Credit. If the remaining credit fields are having zero values then transaction will not be available for service tax as excise credit.
Service Tax Distribution

Navigation: Financial Management General Ledger Periodic Activity Service Tax Service Tax Distribution
This form is used in distributing input service tax amount to different locations. Fields Description: Header General tab Fields No.
Description Number of Service tax Distribution will flow while pressing F3 to create new Service Tax Distribution and the number which you have defined in the General Ledger Setup will flow in this field. Choose the From Location code from where you want to distribute the input service tax. Choose the Service Tax Group Code from
From Location
Fields Distribution Basis Posting Date
Description the lookup list. Define the basis of distribution. Posting date will automatically transfer in this field. You can change the posting date.
Line Fields To Location Distribution % Distribution Amount Description Choose the To Location code from where you are receiving the input service tax. Define the Distribution % for a particular location. The program will automatically calculate the distribution amount on the basis of distribution %. Choose the Global Dimension 1 Code you want the G/L entries to be created with. Choose the Global Dimension 2 Code you want the G/L entries to be created with. Place a check mark if you want to load the input service tax amount on the Services account in case the To Location is not a taxable location.
Shortcut Dimension 1 Code Shortcut Dimension 2 Code Loading on Services Account
On the footer level of the Service tax Distribution form following fields will get populated: Fields Applied Amount Total Distribution % Total Distribution Amount Description The program will populate the amount of service tax which has to be distributed. The program will populate distribution % of the document. the total
The program will populate the total distribution amount which has to be distributed.
On the footer level of Service tax Distribution form following menu buttons will be available: Menu Buttons Line Description In Line menu button option to select Dimension menu item to enter the dimensions for lines. In Function menu button options to select List menu item to view the list of un posted service tax distribution forms. Other option is Apply Entries after selecting this option the program will open new form Dist. Service Tax entries through which you can select the service tax entries which has to be distributed. On the basis of From Location and Service Tax Group Code, the program will filter the service tax entries in the Dist. Service Tax entries. Posting Click Posting menu button to post the service tax distribution form.
Function
Note 1: The program will allow the user to select input service tax credit entries for distribution if the header of the Service tax Distribution form contains From Location and Service Tax Group Code. Note 2: Distribution % should be 100; if percentage of distribution is less than or more than 100 then the program will give an error message for the particular Service tax Distribution form. Note 3: The user is allowed to choose To Location on line level for only once in the Particular Service tax Distribution form. The user cannot repeat the same location in To Location filed for different %. Note 4: If the user has posted some service tax entry for Input Service Distribution with Blank location through purchase transactions, then the user can keep the From Location field as Blank. Simultaneously if the user wants to transfer the service tax credit to H.O. (Company Information) then the user should keep the To Location field as Blank. Note 5: The user is not allowed to transfer the input service tax credit to the same input service distributor location from which the user wants to transfer. The program will not allow choosing the same input service distributor location both in From Location and To Location. Note 6: The user can post the Service tax Distribution form with Global Dimension Code 1 & 2 by entering directly in line or by using the Line menu button.
Note 7: In case of loading on the Services account, the user has to place a check mark in the Loading on Services Account field in the Service tax Distribution form. After posting, the program will debit the Services account and credit the Service Tax Receivable (distribution) account. But the program will not distribute the particular amount of service tax. Note 8: Incase To Location is Input Service Distributor then the program will update Input Service Distribution field with Yes in service tax entry and service tax entry detail which will be created in To location after posting service tax distribution form. Note 9: when you post the Service tax Distribution form, then the program will reduce the remaining service tax credit, remaining service tax eCess credit, and remaining service tax SHE Cess credit field to zero in the Service Tax Entry Detail form, for the transaction which you have distributed. Also the program will store the distribution number in the particular entry. Note 10: Once a service tax entry has been distributed then after the particular entry will not be further available for the distribution.
Distribution of Input Service Tax to Three Different Locations

In case some services are purchased in Blue location and amount of service tax has to be distributed in Green, Red, and Silver locations @ 30%, 30% and 40% respectively.
Enter the following information on header level General tab of the Service tax Distribution form. No.: From Location: Service Tax Group Code: Distribution Basis: Posting Date: DS00102 (Press F3, and number will flow automatically) Blue Adv Previous Years Profit 09/05/07
Click Function menu button and select Apply Entries menu item to select the service tax entry on the basis of From Location and Service Tax Group Code. The program will open the Dist. Input Service Tax Credit form.
Place a check in the Dist. Input Service Tax Credit field for the particular service tax entry which has to be distributed. Click OK to close the form. Note: The user can select multiple service tax entries for distribution. After selecting service tax entries the program will show the service tax amount which has to be distributed in the Applied Amount field on the footer level of the Service tax Distribution form.
Enter the following information on line level of Service tax Distribution form. First Line To Location: Distribution %: Distribution Amount: Second Line To Location: Distribution %: Distribution Amount: Third Line To Location: Distribution %: Distribution Amount: Silver 40 494.40 Red 30 370.80 Green 30 370.80
On the footer level of Service tax Distribution form the program will show the following information: Applied Amount: Total Distribution %: Total Distribution Amount: 1236.00 100.00 1236.00
Post the Service tax Distribution form.

Navigation: Financial Management General Ledger History Service Tax Posted Service Tax Distribution.
Click Navigate button to posted G/L entries
The program will create G/L entries, Service tax entries in receiving locations and Service Tax Distribution entries. G/L entry
The program creates the following G/L entry: Particulars Service Tax Recoverable A/C Green Location Service Tax Receivable (Distribution) A/C Blue Location Service Tax Recoverable A/C Red Location Service Tax Receivable (Distribution) A/C Blue Location Service Tax Recoverable A/C Silver Location Service Tax Receivable (Distribution) A/C Blue Location Type DR CR DR CR DR CR Amount(Rs) 370.80 370.80 370.80 370.80 494.40 494.40
The program will transfer the distributed service tax amount from the Service Tax Receivable (distribution) A/C to Service Tax Recoverable A/C and will store the location code in G/L entries.
Service Tax Entry for Green Location
Service Tax Entry Details for Green Location
The program will store the location from where service tax credit has been received.
Service Tax Entry for Red Location
Service Tax Entry Detail for Red Location
Service Tax Entry for Silver Location
Service Tax Entry Detail for Silver Location
1st Service Tax Distribution entry
2nd Service Tax Distribution entry
3rd Service Tax Distribution entry
The program will update all relevant information in the Service Tax Distribution Entry form which will be generated in the Input Service Distribution register.
Generating Invoice/challan from posted service tax distribution.
Click the Function menu button and select the Print invoice/Challan menu item
Click Preview menu button to generate the Invoice/challan
Invoice/Challan to be issued to Green Location
Invoice/Challan to be issued to Red Location
Invoice/Challan to be issued to Silver Location
The program will generate the invoice/challan with all relevant information.
Distribution of Service Tax Amount to Taxable and Non Taxable Locations

Let us consider a case in which some services which are purchased in Blue location and amount of service tax has to be distributed in Green and White locations @ 50%, 50%. White location is not a taxable location. In this case you need to load the 50% service tax amount to the Services account.
Enter the following information on header and Line level of the Service tax Distribution form. Header No.: From Location: Service Tax Group Code: Distribution Basis: Posting Date: DS00103 (Press F3, and number will flow automatically) Blue Adv Previous Years Profit 10/05/07
Click the Function menu button and select the Apply Entry menu item to select the service tax entry on the basis of From Location and Service Tax Group Code.
The program will open the Dist. Input Service Tax Credit form. Select the service tax entry which has to be distributed. Line First Line To Location: Distribution %: Distribution Amount: Second Line To Location: Distribution %: Distribution Amount: Loading on Services Account: White 50 618 Place check mark. Green 50 618
On the footer level of Service tax Distribution form the program will show the following information: Applied Amount: Total Distribution %: Total Distribution Amount: 1236.00 100.00 1236.00

Click Navigate button to posted G/L entries
The program will create G/L entries, Service tax entries in receiving location and Service Tax Distribution entries. G/L entry
The program creates the following G/L entry: Particulars Type Service Tax Recoverable A/C DR Green Location Service Tax Receivable CR (Distribution) A/C Blue Location Amount(Rs) 618 618
The program will transfer the distributed service tax amount from the Service Tax Receivable (Distribution) A/C to the Service Tax Recoverable A/C. The program will store the location code in G/L entries. Also the program will create the G/L entry for loading on the Services account with same original document number which has been used while posting the invoice.
The program creates the following G/L entry: Particulars Type Advertisement A/C DR Service Tax Receivable CR (Distribution) A/C Blue Location Amount(Rs) 618 618
The program will load the amount on the Service account by debiting it and credit the Service Tax Receivable (Distribution) A/C. No service tax entry will be created for this amount.
Service Tax entry for Green location
Service Tax Entry detail for Green location
1st Service Tax Distribution entry
The program will update all relevant information in service tax distribution entry which has to be generated in the Input Service Distribution register.
2nd Service Tax Distribution entry
The program will update all relevant information in service tax distribution entry which has to be generated in the Input Service Distribution register. In this entry, Loaded on Services Account field has the value as Yes.
View the list of posted service tax distribution through the Posted Service Tax Distribution form.
To view the list of posted service tax distribution, either click the Function menu button and select List or press F5.
The program will open Posted Distribution list from which you can select the particular Posted Service Tax Distribution.
Reports
Input Service Distribution Register
Navigation: Financial Management General Ledger Reports Service Tax Reporting Input Service Distribution Register.
This report will give you the complete information regarding service tax entries related to Input Service Distributor. Information about Input service tax credit amount received from service provider and further distributed to various locations.
Fields Description Fields Posting Date Service tax Group Code Location Code Description Enter the posting date for which you want to generate the report. Choose the Service Tax Group Code for which you want to generate the report. Choose the location code for which you want to generate the report.
The program will generate the Input Service Distribution register with all relevant information.
Service Tax Distribution Invoice/Challan

Navigation: Financial Management General Ledger Reports Service Tax Reporting Service Tax Distribution Invoice/Challan.
The user can generate Invoice/challan which has to be issued to the locations where input service tax credit has been distributed.
Fields Description Fields From Location To Location Distribution Challan No. Description Choose the From Location for which you want to generate the report. Choose the To Location for which you want to generate the report. Choose the Distribution challan number which has to be generated.
The program will generate invoice/challan with all relevant information.
Appendix
Examples: a. Branch A (Registered Input Service Distributor) has paid the invoice of Rs 99000 including service tax of Rs 9000 for the common service. The other branches are X, Y, and Z. All the branches are providing the taxable services and are manufacturer of taxable goods. The amount of service tax as: Rs.9000 should be distributed among three branches. The service tax distribution ratio is 1:6:2. The service tax to be distributed as: X Rs 1000 Y Rs 6000 Z Rs 2000 The following entries will be passed at the time of payment of services and service tax by the branch A: Particulars Debit Rs Services A/C 90000 Service Tax Credit (Distribution) 9000 a/c Cash/Bank Credit Rs
99000
The following entries will be passed at the time of distributing the credit to the branches: Particulars Service tax Receivable X A/C Service tax Receivable Y A/C Service tax Receivable Z A/C Service Tax Credit (Distribution) A/C Debit Rs 1000 6000 2000 Credit Rs
9000
b. Branch A (Registered Input Service Distributor) has paid the invoice of Rs 66000 including service tax of Rs 6000 for the common service. The other branches are X, Y and Z. The branches X and Y are providing the taxable services and are manufacturer of taxable goods. Z is providing the exempted services and is a manufacture of exempted goods. The service tax amount attributable to the branch Z which is engaged in providing exempted services or is a manufacturer of exempted goods is Rs 1000 which cannot be distributed.
The service tax to be distributed is 5000 (6000-1000) The service tax distribution ratio is 3:2; the service tax to be distributed as: X Rs 3000 Y Rs 2000 The following entries will be passed at the time of payment of services and service tax by the branch A: Particulars Debit Rs Services A/C 60000 Service Tax Credit (Distribution) 6000 A/C Cash/Bank Credit Rs
66000
The following entries will be passed at the time of distributing the credit to the branches: Particulars Debit Rs Service tax Receivable X A/C 3000 Service tax Receivable Y A/C 2000 Service Tax Credit (Distribution) A/C For Location Z, the G/L entry will be: Particulars Debit Rs Services A/C 1000 Service Tax Credit (Distribution) A/C Credit Rs 1000 Credit Rs
5000
Microsoft Business Solutions Navision 4.0- TDS Certificate Receivable from Customer
Table of Contents
Overview...............................................................................................................3 Comprehensive Functionality ............................................................................3 Reports..............................................................................................................3 TDS Certificate Receivable from Customer ..........................................................3 Transactions .........................................................................................................4 Payment transaction of Customer .....................................................................4 Sales Transaction..............................................................................................5 Update TDS Certificate Details .............................................................................7 Assign TDS Cert. Details.................................................................................10 Update TDS Cert. Details ................................................................................12 Rectify TDS Cert. Details ................................................................................17 Rectification of wrong assignment to entry......................................................18 Reports ...............................................................................................................20 TDS Certificate Receivable report ...................................................................20 TDS Certificate Summary report .....................................................................24
Overview
TDS Certificate Receivable from Customer functionality enables to track the TDS certificate receivable from customers.
TDS Certificate Receivable from Customer functionality comprehensively covers the following: Identification of transactions against which TDS Certificate is receivable from customer. Updation of received TDS certificate details against the transaction. Generation report of transactions against which TDS certificate is receivable from customer. Generation report of transactions against which TDS certificate is received from customer.
Reports
The TDS Certificate Receivable functionality provides detailed report of transactions against which TDS Certificate is either receivable or received. The functionality also provides a report based on customer and TDS receivable group for the transactions against which TDS Certificate is received.
TDS Certificate Receivable from Customer

TDS is a withholding tax, where tax is deducted at the time of making the payment or booking of the invoice by the customer, whichever is earlier. As per the Income Tax Act, tax need to be deducted by the payer when the payment is of a specific nature. If the TDS is deducted against the concern then the user has to keep the proper tracking of TDS deducted by the customer as the user has to receive TDS certificate from the customer. A proper tracking of the TDS certificate is important for an organization as it is a valuable document and is also an asset for the organization. A proper mechanism is required to track the receipt of TDS certificates. TDS Certificate Receivable from Customer functionality provides a proper mechanism to track the receipt of TDS certificates in the following ways: Will Keep track of transactions against which TDS certificates are to be received from customers
Stores the tax deducted by the customers, against different types of services rendered
Transactions
Payment transaction of Customer
Fill in the fields according to these guidelines: Field TDS Certificate Receivable Description Place a check mark in this field if TDS certificate is receivable against the transaction.
Note: You can also post the transaction with TDS Certificate Receivable check mark from the Cash Receipt Journals, Cash Receipt Voucher, and Bank Receipt Voucher,
Sales Transaction
Enter the following details on the Sales Order header: No 10000 TDS Certificate Receivable True
Enter the following on the Sales Order line Type No. Description Quantity Unit Price Line Amount Post the Sales Order. The program posts the Sales Order as Sales Invoice with the document number SI-B100384 Navigate the Sales Invoice with the document number SI-B-100384 G/L Account 8410 Advertising 1 40000 40000
Open the Customer Ledger entry.
The program populates a check mark in TDS Certificate Receivable field in the Customer Ledger Entry window.
Update TDS Certificate Details

Navigation: Financial Management General Ledger Periodic Activities TDS Receivable from Customer Update TDS Certificate Details.
The program opens the Update TDS Certificate Details window
Fill in the fields in the Update TDS Certificate Details window according to these guidelines: Field Customer No Description Choose the customer number from the look up list, from whom TDS certificate is received. Enter the certificate number as per the received certificate. Enter the date on which certificate was received. Enter the TDS certificate amount as per the TDS certificate. Define the financial year for which TDS certificate was received. Choose the TDS Receivable group from the lookup list for which TDS certificate was received.
Certificate No
Date of Receipt
TDS Certificate Amount
Financial Year
TDS Receivable Group
Functions menu Button: Options Assign TDS Cert. Details Description To open the Assign TDS Cert. Details window, click the Functions menu button and then choose the Assign TDS Cert. Details menu item. You must enter the value in the Customer No field to open the Assign TDS Cert. Details window. To open the Update TDS Cert. Details window, click the Functions menu button and then choose the Update TDS Cert. Details menu item. You must enter the values in all fields to open the Update TDS Cert. Details window. To open the Rectify TDS Cert. Details window, click the Functions menu button and then choose the Rectify TDS Cert. Details menu item. You must enter the value in the Customer No field to open the Rectify TDS Cert. Details window
Update TDS Cert. Details
Rectify TDS Cert. Details
Assign TDS Cert. Details

Assign TDS Cert. Details window contains customer ledger entries which are not identified as entry against which TDS certificate is receivable. No any entry in this window has a check mark in the TDS Certificate Receivable field. If a check mark is placed in the TDS Certificate Receivable field and the window is closed, then the program will remove the entry from this window. The program generates entry in the Update TDS Cert. Details window.
Navigation: Financial Management General Ledger Periodic Activities TDS Receivable from Customer TDS Certificate Receivable
Select 1000 in the Customer No. field. Click the Functions menu button and select the Assign TDS Cert. Details menu item. The program opens the Assign TDS Cert. Details window.
Place a check mark in the TDS Certificate Receivable field for entry number: 8528. Close the Assign TDS Cert. Details window. The program will delete the entry number 8528 from the Assign TDS Cert. Details window and will generate the same entry in the Update TDS Cert. Details window.
Note:
The Assign TDS Cert. Details window can also be opened from the following:
Navigation: Financial Management General Ledger Periodic Activities TDS Receivable from Customer Assign TDS Cert. Details
The program opens the Assign TDS Cert. Details window with relevant entries of all customers.
Update TDS Cert. Details

The Update TDS Cert. Details window contains customer ledger entries against which TDS certificate is receivable.
All entries in this window have a check mark in the TDS Certificate Receivable field. If the check mark is removed from this field and the OK button is clicked, then the program will remove the entry from this window. The program generates the same entry in the Assign TDS Cert. Details window. No any entry in this window has a check mark in the TDS Certificate Received field. If a check mark is placed in the TDS Certificate Received field and OK button is clicked, then the program will remove the entry from this window. The program will generate the same entry in the Rectify TDS Cert. Details window.
Navigation: Financial Management General Ledger Periodic Activities TDS Receivable from Customer Update TDS Certificate Details
Fill in values in the Update TDS Certificate Details window as: Customer No Certificate No Date of Receipt Certificate TDS Amount Financial Year TDS Receivable Group 1000 CONT/0708/01 31-05-07 5,000.00 200708 Contractor
Click the Functions menu button and select the Update TDS Cert. Details menu item. The program opens the Update TDS Cert. Details window.
Note: In the above window the program generates the entry number 8524, 8526 and 8530 after posting the transactions. The program generates the entry number 8528 when TDS Certificate Receivable field is checked in the Assign TDS Cert. Details window. Place a check mark in TDS Certificate Received field for entry number 8526, 8530, and 8528.
Click the OK button. The program deletes the entry number 8526, 8530, and 8528 from the Update TDS Cert. Details window.
The program will generate the entry number 8526, 8528 and 8530 in the Rectify TDS Cert. Details window with the updated values.
Rectify TDS Cert. Details

This window contains customer ledger entries against which TDS certificate is received. All entries in this window have a check mark in the TDS Certificate Received field. If check mark is removed from the TDS Certificate Received field, then the program deletes the values from following fields: Certificate No. TDS Certificate Rcpt Date TDS Certificate Amount Financial Year The program also deletes entry from the window. These entries get populated in the Update TDS Cert. Details window.
Click the Functions menu button and select the Rectify TDS Cert. Details menu item.
The program generates entries in the TDS Cert. Details window with TDS Certificate details.
The program generates values in following fields from values entered in Update TDS Certificate Details window Certificate No. TDS Certificate Rcpt Date TDS Certificate Amount Financial Year TDS Receivable Group CONT/0708/01 31-05-06 5,000 200708 Contractor
Rectification of wrong assignment to entry

The program allows rectifying the wrong assignment to entry. In case TDS Certificate is not receivable against the entry number 8526, then the program allows rectifying the error. Open the Rectify TDS Cert. Details window
Click the Functions menu button and select the Rectify TDS Cert. Details menu item.
Remove the check mark from the TDS Certificate Received field against the entry number 8526.
The program deletes the TDS certificate details from entry number 8526. Close the Rectify TDS Cert. Details window. The program deletes the entry number 8526 from the Rectify TDS Cert. Details window. Open the Update TDS Receivable window.
Click the Functions menu button and select the Update TDS Cert. Details menu item.
The program generates the entry number 8526 in the Update TDS Cert. Details window. Remove the check mark from the TDS Certificate Receivable field and click the OK button. The program deletes the entry number 8526 from the Update TDS Cert. Details window. The program generates entry number 8526 in the Assign TDS Cert. Details window.
Reports
TDS Certificate Receivable report
TDS Certificate Receivable report shows the transaction details against which TDS certificate is either received or receivable. The following details will get populated in the TDS Certificate Receivable report: Company Name Customer No. Customer Name Customer Address Document Type Document No Document Date TDS certificate received(Yes or No) TDS cert Receivable Group Certificate No TDS Certificate Rcpt date Certificate TDS Amount(Rs) Financial Year
Navigation: Financial Management General Ledger Reports TDS Receivable from Customer TDS Certificate Receivable
The program opens the TDS Certificate Receivable window
Fields Description Cust. Ledger Entry Tab Fields Customer No. TDS Receivable Group Document No. Certificate Received Description Choose the customer no. for which you want to generate the report Choose the TDS Receivable Group for which you want to generate the report Enter the document no. for which you want to generate the report Enter Yes if you want to generate the report for certificates received other wise enter no. If this field is blank then program will generate the report for both. Enter the posting date for which you want to generate the report.
Posting Date
TDS Certificate Summary report

The TDS Certificate Summary report shows the TDS certificate details with TDS Group wise. The following details will get populated in the TDS Certificate Summary report: Company Name Customer No. Customer Name Customer Address TDS cert Receivable Group Certificate No TDS Certificate Rcpt date Financial Year Certificate TDS Amount(Rs) TDS Certificate Received group total
The program opens the TDS Certificate Summary window.
Cust. Ledger Entry Fill in the values as per following instructions: Field Customer No. Posting Date TDS Receivable Group Description Choose the customer no. for which you want to generate the report Enter the Posting date for which you want to generate the report Choose the TDS receivable group for which you want to generate the report
Microsoft Business Solutions Navision 4.0- CST Set off against VAT Carried forward and VAT Deferment Period
Table of Contents
Overview of Functionality......................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................4 Reports..............................................................................................................4 Setup- Sales Tax...............................................................................................5 States ................................................................................................................6 Deferment Period ..............................................................................................7 Calculation of VAT on Capital Goods....................................................................8 Deferment Schedule to be calculated on the basis of Financial Year................8 Viewing the Posted Transaction ..................................................................12 Deferment Schedule to be calculated on the basis of Calendar Year .............14 Viewing the Posted Transaction ..................................................................19 Deferment Schedule to be calculated on monthly basis..................................21 Viewing the Posted Transaction ..................................................................26 Deferment Schedule to be calculated on the basis of Financial Year in case of Fixed Asset .....................................................................................................28 Viewing the Posted Transaction ..................................................................33 VAT Settlement...................................................................................................35 Viewing the Posted Transaction ..................................................................39 VAT Reporting ....................................................................................................41 VAT Settlement ...............................................................................................41 Appendix.............................................................................................................43
This functionality enables the user to calculate the deferment schedules on the basis of financial year and calendar year. It also helps to setoff the VAT credit that has been carry forward from previous period against Current CST Payable.
Detailed Setup
VAT functionality contains a detailed setup, which is used in mapping the Tax Rate, calculation of Input VAT Credit, Output VAT, VAT Adjustments, and the VAT Settlement process. Setup Area T.I.N. Nos. States Description Define the various TIN numbers of the firm. Define the State/Union Territory, first twodigits of the TIN of the State, Deferments for the Capital Goods, Schedules of the State, Specified Period for Refund, Tax Period, Deferment Period, Financial Year check mark, Retention Limit incase of Branch Transfer, GL account for Input VAT credit, GL Account for Output Tax, GL Account for VAT Deferred Account, GL Account for VAT Payable Account, GL Account for VAT Refund, and GL Account for Excess Input VAT Credit Carried forward. Define the item categories and the Item category, which is a work contract. Define the tax jurisdiction, the state under which it falls, tax type, and retention limit for non taxable sales. Also define whether this retention limit is loaded on the item or not. Define tax jurisdiction, item category, schedule, tax rate, capital goods, creditable goods, standard deduction, VATable purchase tax, and VAT retention. Define all schedules for states. Define the tax jurisdiction applicable for customer/ vendor state with location.
Tax Groups Tax Jurisdictions
Tax Details
Schedules Tax Area Locations
Item Card Vendor Card
If the item is a fixed asset, and the Tax Group code for the item is defined. Define the TIN number of the vendor. Also define whether the vendor has opted for composition or not. Define the TIN number of the customer. Also define whether the sale to customer is Export/ Deemed Export Sale or VAT Exempted Sale. Define the TIN number of the location, location under composition and export/ deemed export location. Define the Tax Group Code.
Customer Card
Location Card
GL Account Card
This functionality comprehensively covers the following points: Calculation of Deferment Schedule in case of purchase of capital goods on the basis of financial year. Calculation of Deferment Schedule in case of purchase of capital goods on the basis of calendar year. Calculation of Deferment Schedule in case of purchase of capital goods on monthly/quarterly/half-yearly basis. VAT Credit which has been carry forward from previous period can be adjusted (Setoff) against current period CST payable through the VAT Settlement form.
Reports
Under this functionality VAT Settlement report can be generated with a newly introduced field as: Setoff against Current CST.
Setup- Sales Tax

Navigation: Financial Management Setup Sales Tax
States
Navigation: Financial Management Setup Sales Tax States
Fields Description: Field Deferment Period Description This field contains the period for deferment. Number of deferments will be calculated; based on the value in this field. Note: The value in this field should be 1Y for calculating deferments on the basis of Financial Year. Financial Year Place a check mark in this field if the number of deferments has to be calculated on the basis of Financial Year. Note: This field will be checked in case deferment period is 1Y. For example: If capital goods is purchased on any day of the financial year (say 22/08/07) and is allowed to take the credit of Input VAT on the basis of Financial Year. In this case the deferment schedules will be: First deferment schedule on 22/08/07 Second deferment schedule on
Field
Description 01/04/08 Third deferment schedule on 01/04/09
Deferment Period
Navigation: Financial Management Setup Sales Tax States State Deferment Period
Enter the following fields in the Jurisdiction Deferments Periods form: State Code: Effective Date: Starting Threshold Amount: Closing Threshold Amount: No. of Deferments: Close the window ND 01-04-07 0.00 100000.00 2
Calculation of VAT on Capital Goods.

Deferment Schedule to be calculated on the basis of Financial Year
In the State Setup, Tax Period is 1M, Deferment Period is 1Y, Financial Year field is checked, and No. of Deferments in the Jurisdiction deferments Period form is 2.
To create a purchase order, fill the fields in Purchase Order as follows: On the Header Vendor: Location: Structure: 10000 (Delhi Postmaster) Blue VAT (In Structure, Order Detail Type should be Sales Tax)
On the Line Item: Quantity: Direct Unit cost excluding VAT: Line Amount Excluding VAT:
1001 ((Touring Bicycle) Fixed Asset field should be checked in the Item Card) 10 50000 500000 (The program will calculate it.)
Place a check mark in the Fixed Asset field in the Item Card. Calculate Structure Value. The program will calculate the VAT and will show the VAT amount in the Input Tax Credit Amount field. The user can view the deferment schedule before posting the Purchase Order. Click the Order menu button and select Deferment Schedule.
The program will create the deferment entries according to the defined deferment periods in the State setup. The program will create the deferment schedule on the basis of financial year. First Schedule (Posting Date): Second Schedule (Posting Date): Third Schedule (Posting Date): 25/08/07 01/04/08 01/04/09
The user can print deferment schedule before posting.
Enter the value in the Document No. field as: 106506 Click Preview.

G/L Entry
The program creates the following entry: Particulars Type Amount (Rs.) Finished Goods Dr. 500,000.00 Direct Cost Cr. 500,000.00 Applied Finished Goods Cr. 496,494.05 Purchase Dr. 496,494.05 Variance Purchase A/C Dr. 500,000.00 VAT Deferment Dr. 62,500.00 A/C Vendor A/C Cr 562,500.00 VAT has been calculated by taking the values as follows: Base Value: VAT %: Tax Amount: ITC: 500000 12.50 62500 62500
The program will also create Detailed Tax Entries.
The program will create three detail tax entries, because we have defined two numbers of deferments in the setup. For the first entry deferment number will be 0, for the second entry deferment number will be 1, and for the third entry deferment number will be 2. The program creates the following detailed tax entries with the following posting dates: First Detailed Tax Entry (Posting Date): Second Detailed Tax Entry (Posting Date): Third Detailed Tax Entry (Posting Date): 25/08/07 01/04/08 01/04/09
The posting dates have been calculated on the basis of the financial year. Note 1: Fixed Asset Deferments will be created if per unit cost price of fixed asset is lying between the starting and ending threshold amount. Note 2: It is mandatory to place a check mark in the Capital Goods fields in the Tax Details setup if you want to calculate the Deferments Schedules for fixed assets. Note 3: The same can be done if you are using the Fixed Asset module. In this case you need to create the FA card and have to mention the tax group code in the FA card. Note 4: If you are not using the FA Module and still want to make deferments for Fixed Asset then you should place a check mark in the Fixed Asset field in the Item card. Note 5: The program will allow placing a check mark in the Financial Year field in the State setup if the Deferment Period field has value as 1Y in the State setup. Note 6: You can also create deferment schedule on the basis of financial year through the VAT Opening Journal. Calculation of VAT for fixed asset can also be done through the Purchase Invoice.
Deferment Schedule to be calculated on the basis of Calendar Year

In the State Setup, Tax Period is 1M, Deferment Period is 1Y, Financial Year field is unchecked and No. of Deferments in the Jurisdiction Deferments Period form is 2.
On the Line Item: Quantity: Direct Unit cost excluding VAT: Line Amount Excluding VAT: 1001 ((Touring Bicycle) Fixed Asset field should be checked in the Item Card) 10 50000 500000 (The program will calculate it.)
Place a check mark in the Fixed Asset field in the Item Card. Calculate Structure Value. The program will calculate the VAT and will show the VAT amount in the Input Tax Credit Amount field. You can view the deferment schedule before posting the Purchase Order. Click the Order menu button and select Deferment Schedule.
The program will create the deferment entries according to the defined deferment periods in the State setup. The program will create the deferment schedule on the basis of the calendar year. First Schedule (Posting Date): Second Schedule (Posting Date): Third Schedule (Posting Date): 25/08/07 25/08/08 25/08/09
You can print the deferment schedule before posting.

G/L Entry
The program creates the following entry: Particulars Finished Goods Direct Cost Applied Finished Goods Purchase Variance Purchase A/C VAT Deferment A/C Vendor A/C Type Dr. Cr. Cr. Dr. Dr. Dr. Cr Amount (Rs.) 500,000.00 500,000.00 496,494.05 496,494.05 500,000.00 62,500.00 562,500.00
VAT has been calculated by taking the values as follows: Base Value: VAT %: Tax Amount: ITC: 500000 12.50 62500 62500
The posting dates have been calculated on the basis of the calendar year. Note 1: Fixed Asset Deferments will be created only if the per unit cost price of fixed asset is lying between the starting and ending threshold amount. Note 2: It is mandatory to place a check mark in Capital Goods fields in Tax Details setup if the user wants to calculate Deferments Schedules for fixed assets. Note 3: The same can be done if you are using the Fixed Asset module. In this case you need to create the FA card and have to mention the tax group code in the FA card. Note 4: If you are not using the FA Module and still want to make deferments for Fixed Asset then you should place a check mark in the Fixed Asset field in the Item card. Note 5: You can also create deferment schedule on the basis of financial year through the VAT Opening Journal. Calculation of VAT for fixed asset can also be done through the Purchase Invoice.
Deferment Schedule to be calculated on monthly basis.

In the State Setup, Tax Period is 1M, Deferment Period is 1M, Financial Year field is unchecked, and No. of Deferments in the Jurisdiction Deferments Period form is 2.
On the Line Item: Quantity: Direct Unit cost excluding VAT: Line Amount Excluding VAT:
1001 ((Touring Bicycle) Fixed Asset field should be checked in the Item Card) 10 50000 500000 (The program will calculate it.)
Place a check mark in the Fixed Asset field in the Item Card. Calculate Structure Value. The program will calculate the VAT and will show the VAT amount in the Input Tax Credit Amount field. The user can view the deferment schedule before posting the Purchase Order. Click the Order menu button and select Deferment Schedule.
The program will create the deferment entries according to the defined deferment periods in the State setup. The program will create the Deferment Schedule on monthly basis. First Schedule (Posting Date): Second Schedule (Posting Date): Third Schedule (Posting Date): 25/08/07 25/09/07 25/10/07
You can print deferment schedule before posting.

G/L Entry
The program creates the following entry: Particulars Type Amount (Rs.) Finished Goods Dr. 500,000.00 Direct Cost Cr. 500,000.00 Applied Finished Goods Cr. 496,494.05 Purchase Dr. 496,494.05 Variance Purchase A/C Dr. 500,000.00 VAT Deferment Dr. 62,500.00 A/C Vendor A/C Cr 562,500.00 VAT has been calculated by taking the values as follows: Base Value: VAT %: Tax Amount: ITC: 500000 12.50 62500 62500
The posting dates have been calculated on Monthly basis. Note 1: Fixed Asset Deferments will be created if per unit cost price of fixed asset is lying between the starting and ending threshold amount. Note 2: It is mandatory to place a check mark in the Capital Goods field in the Tax Details setup if you want to calculate the Deferments Schedules for fixed assets. Note 3: The same can be done if you are using the Fixed Asset module. In this case you need to create the FA card and have to mention the tax group code in the FA card. Note 4: If you are not using the FA Module and still want to make deferments for Fixed Asset then you should place a check mark in the Fixed Asset field in the Item card. Note 5: You can also create deferment schedule on monthly basis through the VAT Opening Journal. Note 6: If the Tax Period is 1M and Deferment Period is 6M, then the program will create deferment schedule after every six months. Calculation of VAT for fixed asset can also be done through the Purchase Invoice.
Deferment Schedule to be calculated on the basis of Financial Year in case of Fixed Asset
In the State Setup, Tax Period is 1M, Deferment Period is 1Y, Financial Year field is checked, and No. of Deferments in the Jurisdiction deferments Period form is 2.
On the Line Type: No.: Quantity: Direct Unit cost excluding VAT: Line Amount Excluding VAT: Calculate Structure Value.
Fixed Asset FA000010 10 50000 500000 (The program will calculate it.)
The program will calculate the VAT and will show the VAT amount in the Input Tax Credit Amount field. The user can view the deferment schedule before posting the Purchase Order. Click the Order menu button and select Deferment Schedule.
The program will create the deferment entries according to the defined deferment periods in the State setup. The program will create the deferment schedule on the basis of financial year. First Schedule (Posting Date): Second Schedule (Posting Date): Third Schedule (Posting Date): 25/08/07 01/04/08 01/04/09
The user can print deferment schedule before posting.

G/L Entry
The program creates the following entry: Particulars Type Amount (Rs.) Increases during Dr. 500,000.00 the Year VAT Deferment Dr 62,500.00 A/C Purchase A/C Cr. 562,500.00
VAT has been calculated by taking the values as follows: Base Value: VAT %: Tax Amount: ITC: 500000 12.50 62500 62500
The program will create three detail tax entries, because we have defined two numbers of deferments in the setup. For the first entry deferment number will be 0, for the second entry deferment number will be 1, and for the third entry deferment number will be 2.
The program creates the following detailed tax entries with the following posting dates: First Detailed Tax Entry (Posting Date): Second Detailed Tax Entry (Posting Date): Third Detailed Tax Entry (Posting Date): 25/08/07 01/04/08 01/04/09
The posting dates have been calculated on the basis of the financial year. Note 1: Fixed Asset Deferments will be created if per unit cost price of fixed asset is lying between the starting and ending threshold amount. Note 2: It is mandatory to place a check mark in the Capital Goods fields in the Tax Details setup if you want to calculate the Deferments Schedules for fixed assets. Note 3: If you are not using the FA Module and still want to make deferments for Fixed Asset then you should place a check mark in the Fixed Asset field in the Item card. Note 4: The program will allow placing a check mark in the Financial Year field in the State setup if the Deferment Period field has value as 1Y in the State setup. Note 5: You can also create deferment schedule on the basis of financial year through the VAT Opening Journal. Calculation of VAT for fixed asset can also be done through the Purchase Invoice.
VAT Settlement
Navigation: Financial Management General Ledger Periodic Activities Value Added Tax VAT Settlement.
Field Description Field Setoff against Current CST Description Enter the amount which has been carried forward from previous period and has to be setoff against current CST liability. The program will not allow you to enter the value in this field under the following conditions: If amount is more than CST Payable. If amount is more than the carry
Field
Description forward from previous period amount less refund amount less Setoff against Current VAT amount.
In the above VAT Settlement form, following fields are showing values as: Carry forward from the previous period: 83,333.32 CST Payable: VAT Payable: 100,000.00 10,416.67
Now, enter the values to be adjusted in setoff against current VAT field and setoff against current CST field and in refund field. Enter the following fields in the VAT Settlement form: Refund: Setoff against current VAT.: Setoff against current CST: 10,000.00 10,000.00 63,333.32
After entering values in the above fields, following fields will get changed automatically: Carry forward: VAT Payable: Net VAT Payable: Net CST Payable.: 0.00 416.67 416.67 36,666.68
Note: Amount that has been carried forward from previous period has been adjusted (setoff) against current period CST payable. Post the VAT Settlement form.

G/L Entry
The program creates the following entry: Particulars Sales Tax A/C (Sales) VAT Payable A/C VAT Payable A/C VAT Deferment A/C VAT C/F A/C VAT Refund A/C VAT Payable A/C VAT Payable A/C Sales Tax A/C (Sales) VAT Payable A/C Type Dr. Cr. Dr. Cr. Cr. Dr. Dr. Dr. Dr. Cr. Amount (Rs.) 31,250.00 31,250.00 20,833.33 20,833.33 83,333.32 10,000.00 10,000.00 63,333.32 100,000.00 100,000.00
Note 1: You can enter the value in the Setoff against current CST field in the VAT Settlement form, which is not more than CST Payable and not more than carry forward from previous period amount less refund amount less setoff against current VAT amount. Note 2: Program will not allow you to post the VAT Settlement form if the Previous Tax Period VAT Settlement form is not settled. Note 3: Program will not allow you to Undo Post the VAT Settlement form if the Next Tax Period VAT Settlement form is settled.
VAT Reporting
VAT Settlement
Navigation: Financial Management General Ledger Reports VAT Reporting VAT Settlement.
Enter the following information on the VAT Settlement tab: State Code: ND
Enter the following information on the Options tab: Starting Date: 01-09-07
The program will automatically fill the Ending Date field (30-09-07) To print the report, click Print. To see the report on screen, click Preview. If you want to print it later, click Cancel.
Note: You can generate the VAT Settlement report only for the period that has been settled through the VAT Settlement form.
Appendix
Case 1: Take an example of a company that purchases capital goods and VAT deferment period is three financial years starting from the date of acquisition: XYZ Ltd. purchases capital goods from A Ltd. for Rs. 40,000 as on 10-02-07. VAT is payable @10%. For the state, VAT Deferment period is three years from the date of purchase of an asset. A year starts from 1st April and ends on 31st March. Now, the VAT deferment period will be as follows: 1st Schedule - 10-02-07 2nd Schedule - 01-04-07 3rd Schedule - 01-04-08 VAT payable is calculated as follows: 40,000 @ 10% = Rs.4000 The VAT dealer can take the input credit for the capital goods in three installments which are as follows: Amount for each installment = 4000/3 = Rs.1333 On 10-02-07 - Rs.1333 On 01-04-07 - Rs.1333 On 01-04-08 - Rs. 1334 Case 2: In case company purchases capital goods and VAT deferment period is three years starting from the date of acquisition: XYZ Ltd. purchases capital goods from A Ltd. for Rs. 60,000 as on 10-02-07. VAT is payable @10%. For the state, VAT Deferment period is three years from the date of purchase of an asset. Now, the VAT Deferment period will be as follows: 1st Schedule - 10-02-07 2nd Schedule - 10-02-08 3rd Schedule - 10-02-09 VAT payable is calculated as follows: 60,000 @ 10% = Rs.6000 The VAT dealer can take the input credit for the capital goods in three installments, which are as follows: Amount for each installment = 6000/3 = Rs.2000
On 10-02-07 - Rs.2000 On 10-02-08 - Rs.2000 On 10-02-09 - Rs.2000 Case 3: Take another example of a company that purchases capital goods and VAT deferment period is 36 months starting from the date of acquisition: XYZ Ltd. purchases capital goods from A Ltd. for Rs.180000 as on 10-02-07. VAT is payable @ 10%. For the state, VAT Deferment period is 36 months from the date of purchase of an asset. Now the VAT Deferment period is as follows: 1st Schedule - 10-02-07 2nd Schedule - 10-03-07 3rd Schedule - 10-04-07 .. .. Up to. 36th Schedule - 10-01-10 VAT payable is calculated as follows: 180000 @ 10% = Rs.18000 The VAT dealer can take the input credit for the capital goods in 36 equal monthly installments which are as follows: Amount for each installment = 18000/36 = Rs.500 On 10-02-07 On 10-03-07 On 10-04-07 .. .. Up to. On 10-01-10 Rs.500 Rs.500 Rs.500
Rs.500
Microsoft Business Solutions Navision 4.0- ADC VAT Calculation
Table of Contents
Overview of Functionality......................................................................................4 Detailed Setup...................................................................................................4 Comprehensive Functionality ............................................................................4 Reports..............................................................................................................5 Setups Required ...................................................................................................5 Excise Setup .....................................................................................................6 Duties ............................................................................................................7 Posting Setup ................................................................................................8 Claim Setoff .................................................................................................11 Structure..........................................................................................................12 Calculation of CVD and ADC through Purchase Transactions ...........................14 Calculation of CVD in case of Normal Item through Purchase Order/Invoice..14 Viewing the Posted Transaction ..................................................................16 Calculation of CVD in case of Capital Item through Purchase Order/Invoice ..24 Viewing the Posted Transaction ..................................................................25 Calculation of CVD through Purchase Credit Memo .......................................35 Viewing the Posted Transaction ..................................................................37 Calculation of CVD through Sales Order.........................................................44 Viewing the Posted Transaction ..................................................................45 Calculation of CVD through Transfer Order ....................................................50 Transfer of Normal Items .............................................................................50 Viewing the Posted Transaction (Transfer Shipments)................................52 Viewing the Posted Transaction (Transfer Receipts)...................................57 Transfer of Capital Items .............................................................................62 Viewing the Posted Transaction (Transfer Shipments)................................64 Viewing the Posted Transaction (Transfer Receipts)...................................71 Excise CENVAT Claim ....................................................................................80 Calculation of CVD and ADC in case of Trading Items .......................................84 Calculation of CVD in case of Trading Item through Purchase Order .............84 Viewing the Posted Transaction ..................................................................86 Calculation of CVD in case of Trading Item through Sales Order....................93 Viewing the Ledger Entries ..........................................................................94 Calculation of CVD in case of Trading Item through Purchase Return Order100 Viewing the Ledger Entries ........................................................................101 Calculation of CVD in case of Trading Item through Sales Return Order......106 Viewing the Ledger Entries ........................................................................107 Normal Goods Purchased for Trading and Further Transferred for Manufacturing ..........................................................................................................................112 Transfer of Goods to Manufacturing Unit from Trading Unit (through Item Re class Journal) ................................................................................................112 Viewing the Ledger Entries ........................................................................114 Capital Goods Purchased for Trading and further Transferred for Manufacturing ..........................................................................................................................116 Transfer of Capital Goods to Manufacturing Unit from Trading Unit..............117 Viewing the Ledger Entries ........................................................................118
Transfer of Goods to Manufacturing Unit from Trading Unit through Transfer Order Form....................................................................................................121 Viewing the Posted Transaction (Transfer Shipments)..............................122 Viewing the Posted Transaction (Transfer Receipts).................................125 Transfer of Capital Goods to Manufacturing Unit from Trading Unit through Transfer Order Form .....................................................................................128 Viewing the Posted Transaction (Transfer Shipments)..............................130 Viewing the Posted Transaction (Transfer Receipts).................................133 Appendix...........................................................................................................138
Additional duty of Custom (CVD) equivalent to duty of excise and Additional duty of customs equivalent to value Added tax, Sales Tax, or local tax are specified for the purpose of eligibility of CENVAT. Additional duty of customs equal to the, excise duty leviable on like goods produced or manufactured in India. This is levied under Section 3 of Customs Tariff Act, 1975. This is usually referred to as "Countervailing Duty" (CVD). However, the correct description of this duty is Additional Duty of Customs. In order to determine the applicable rate, the user has to obtain the correct classification of the goods under the Central Excise Tariff Act, 1986. The duties under the Central Excise Tariff are on ad valorem basis. However, specific rates have been prescribed for some items.
Detailed Setup
CVD functionality contains the detailed setup of Excise and Structure which you need to create before calculating CVD and ADC VAT. Followings are the setups required for calculating CVD and ADC. Excise Structure Claim Setoff
Following are the comprehensive functionalities covered under CVD in case of Normal Items and Capital Goods: Calculation of CVD and ADC VAT through Purchase, Sale Order/Invoice. Updation of RG 23 A/C Part I & II registers. Additional duty in lieu of VAT is not available for deferments in case of purchase of capital item. Additional duty component is not available for settlement of service tax on output service. Settlement of one duty element against multiple sub-duty elements. Calculation of CVD in case of purchase of trading items. CVD can also be calculated while transferring goods from trading unit to manufacturing unit. Updating RG 23 D and Quarterly Return for Traders reports.
Reports
All statutory reports related to excise for example RG 23 A Part I & II, RG 23 C Part I & II, RG 23 D, and Quarterly Return for Traders will get updated with this functionality.
Setups Required
Followings are the setups required to be fill for calculating CVD and ADC. Excise Structure Claim Setoff
Excise Setup
Navigation: Financial Management General Ledger Setup Excise
Duties
Navigation: Financial Management General Ledger Setup Excise Duties
In the Excise Duties setup, following new codes has been introduced for the calculation of CVD and ADC: ADC VAT Amount BCD Amount CIF Amount Custom E CESS Amount Custom SHE CESS Amount
These codes will be used for setting up the calculation formulas in the Excise Posting setup.
Posting Setup
Navigation: Financial Management General Ledger Setup Excise Posting Setup
Fill in the fields according to these guidelines for calculating CVD and ADC: Fields Excise Bus. Posting Group Excise Prod. Posting Group From Date CENVAT Cr. Receivable Account CENVAT Cr. Receivable (Trading) Description Choose the excise business posting group from the lookup list. Choose the excise production posting group from the lookup list. Enter the date, from which you want to calculate CVD and ADC. Choose the CENVAT Cr. Receivable Account from the lookup list. Choose the CENVAT Cr. Receivable (Trading) from the lookup list. Choose the CENVAT Transferred (Trading) from the lookup list. Choose the Excise Payable Account from the lookup list. Choose the CENVAT Cr. Account from the lookup list. (Deferred)
CENVAT Transferred (Trading) Excise Payable Account CENVAT Cr. (Deferred) Account BED Calculation Type
Choose the BED Calculation type from drop down button.
BED % BED Calculation Formula AED(GSI) Calculation Type AED(GSI) % AED(GSI) calculation formula SED Calculation type SED % SED Calculation formula SAED calculation Type SAED % SAED calculation formula eCess calculation type eCess % eCess calculation formula
Define the BED %. Define the BED calculation formula as the sum of BCD Amount, CIF Amount. Choose the AED(GSI) Calculation Type from drop down button. Define the AED(GSI) %. Define the AED(GSI) calculation formula as the sum of BCD Amount, CIF Amount. Choose the SED Calculation type from drop down button. Define the SED % Define the SED calculation formula as the sum of BCD Amount, CIF Amount. Choose the SAED Calculation type from drop down button. Define the SAED %. Define the SAED calculation formula as the sum of BCD Amount, CIF Amount. Choose the eCess Calculation type from drop down button. Define the eCess %. Define the eCess calculation formula as the sum of BED Amount, AED Amount, SED Amount and SAED Amount. Place a check mark If you want to setoff against excise payable eCess and SHE CESS. Choose the SHE CESS Calculation type from drop down button. Define the SHE CESS % Define the SHE CESS calculation formula as the sum of BED Amount, AED Amount,
Setoff Available for eCess
SHE CESS calculation type SHE CESS % SHE CESS calculation formula
SED Amount and SAED Amount Custom eCess calculation type Choose the custom eCess calculation type from drop down button (This is a new field, which has been added to calculate the Custom eCess). Define the custom eCess % (This is a new field, which has been added to calculate the Custom eCess). Define the custom eCess calculation formula as the sum of BCD Amount, CVD Amount (BED+AED+SED+SAED), e Cess Amount and SHE Cess Amount (This is a new field, which has been added to calculate the Custom eCess). Choose the custom SHE CESS calculation type from drop down button (This is a new field, which has been introduced to calculate the Custom SHE CESS). Define the custom SHE CESS % (This is a new field, which has been added to calculate the Custom SHE CESS). Define the custom SHE CESS calculation formula as the sum of BCD Amount, CVD Amount (BED+AED+SED+SAED), E Cess Amount and SHE Cess Amount (This is a new field, which has been added to calculate Custom SHE CESS). Choose the ADC VAT Calculation type from drop down button. Define the ADC VAT. Define the ADC VAT calculation formula as the sum of BCD Amount, CIF Amount, BED Amount, AED Amount, SED Amount, SAED Amount, e Cess Amount, SHE CESS Amount, Custom E Cess Amount and Custom SHE Cess Amount.
Custom eCess %
Custom eCess calculation formula
Custom SHE CESS calculation type
Custom SHE CESS %
Custom SHE CESS calculation formula
ADC VAT calculation type ADC VAT % ADC VAT calculation formula
The program will calculate CVD and ADC, based on the formula defined in the Excise Posting setup.
Claim Setoff
Navigation: Financial Management General Ledger Setup Excise Claim Setoff
In the Claim Setoff list, you can map a duty against another duty which you want to take the credit while using CENVAT Claim form. Fields Description: Fields BED Amount Description Choose duties from the duty code list against which you want to settle the BED Amount. Choose duties from the duty code list against which you want to settle the AED (TTA) Amount. Choose duties from the duty code list against which you want to settle the AED (GSI) Amount. Choose duties from the duty code list against which you want to settle the ADET Amount. Choose duties from the duty code list against which you want to settle the ADE Amount. Choose duties from the duty code list against which you want to settle the CESS Amount. Choose duties from the duty code list against which you want to settle the NCCD Amount.
AED(TTA) Amount
AED(GSI) Amount
ADET Amount
ADE Amount
CESS Amount
NCCD Amount
Fields SAED Amount
Description Choose duties from the duty code list against which you want to settle the SAED Amount. Choose duties from the duty code list against which you want to settle the SED Amount. Choose duties from the duty code list against which you want to settle the eCess Amount. Choose duties from the duty code list against which you want to settle the SHE CESS Amount. Choose duties from the duty code list against which you want to settle the ADC VAT Amount.
SED Amount
eCESS Amount
SHE CESS Amount
ADC VAT Amount
Structure
Navigation: Financial Management General Ledger Setup Structure Structure
Create new structure for CVD calculation with Type Excise.
Fields Description Fields CVD CVD Payable to Third Party Description Place a check mark in this field to calculate the CVD. Place a check mark in this field if the CVD and ADC amount is payable to Third Party means Customs House. Select the third party code from the G/L account List by clicking lookup button.
CVD Third party Code
Note: The program will calculate CVD only if the CVD is True in Structure and will update third party account if CVD payable to third party field is checked and CVD third party code is defined in structure. Third party feature is only applicable in case of Purchase Transactions.
Calculation of Transactions
CVD
and
ADC
through
Purchase
Calculation of CVD in case of Normal Item through Purchase Order/Invoice

Fields Description Fields CIF Amount BCD Amount Description You need to enter per unit amount of CIF in this field. You need to enter per unit amount of BCD in this field.
To calculate CVD, fill the fields in the Purchase Order form as follows:
On the Header: Buy from Vendor No: Structure: On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: CIF Amount: BCD Amount: Calculate Structure Press F9 to view the excise amount. Post the Order. Item 1000 Bicycle 10 1000 10000 1000 (per quantity) 1000 (per quantity) 10000 CVD

G/L Entry
The program creates the following entry: Particulars Purchase CENVAT Cr. Receivable Vendor Custom House Type Dr. Dr. Cr. Cr. Amount (Rs.) 10399 4244 10000 4643
In this case, the program will credit the Custom House with CVD and ADC amount. Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Custom E Cess % Custom SHE Cess % Calculation: 20000*16%: 3200*2%: 3200*1%: (10000+3200+64+32)*2%: (10000+3200+64+32)*1%: 20000+3296+399 = 23694*4%: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 266 (Custom ECESS) 133 (Custom SHE CESS) 948 (ADC VAT) 20000 16% 4% 2% 1% 2% 1%
Total CVD & ADC Amount:
3200+ 64+ 32+ 266+133+948 = 4643
Note: The program will load the custom eCess amount and custom SHE Cess amount to Purchase account and on inventory. Both the custom eCess and custom SHE Cess are not available in the excise entry as well as in RG registers; as both has to be loaded on inventory.
Excise Entry
The program will create Excise Entry with value in the CVD field as Yes and will also update the ADC VAT Amount.
RG 23 A Part I
The program will create RG 23 A Part I entry with Received Quantity.
RG 23 A Part II
The program will create RG 23 A Part II entry with CVD Yes and will also update the ADC VAT Amount fields. You can also post the transaction from the Purchase Invoice. Note 1: The user can also calculate CVD for type G/L account and Charge (Item) from the Purchase Order / Invoice. Note 2: If CVD is True in Structure then the user should enter the amount in the CIF and BCD Amount fields on Purchase line of Order /Invoice.
Note 3: ADC VAT amount will not be available for taking excise credit while making payment of service tax. Note 4: Custom ECESS amount and Custom SHE CESS amount will be loaded on inventory and will not be available for CENVAT Credit.
Calculation of CVD in case of Capital Item through Purchase Order/Invoice

To calculate CVD, fill the fields in the Purchase Order as follows:
On the Header:
Buy from Vendor No: Structure: On the Line: Type: No.: Item 1001 10000 CVD
(Capital Item field is true in Item Card)
Description: Quantity: Direct Unit Cost: Line Amount: CIF Amount: BCD Amount:
Touring Bicycle 10 1000 10000 1000 (per quantity) 1000 (per quantity)
Calculate Structure. Press F9 to view the excise amount. Post the Order.

G/L Entry
The program creates the following entry: Particulars Purchase CENVAT Cr. Receivable CENVAT Deferred Vendor Custom House Type Dr. Dr. Dr. Cr. Cr. Amount(Rs) 10399 2596 1648 10000 4643
Note: In case of capital item the program will not consider ADC VAT amount as deferred. ADC VAT amount will be treated as CENVAT Cr. Receivable. Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Custom Ecess %: Custom SHE CESS %: 20000 16% 4% 2% 1% 2% 1%
Calculation: 20000*16%: 3200*2%: 3200 (CVD) 64 (ECESS)
3200*1%: (10000+3200+64+32)*2%: (10000+3200+64+32)*1%: 20000+3296+399 = 23694*4%: Total CVD & ADC Amount:
32 (SHE CESS) 266 (Custom ECESS) 133 (Custom SHE CESS) 948 (ADC VAT) 3200+ 64+ 32+ 266+133+948= 4643
4643-(948+266+133) =3296, 3296/2= 1648 The above calculation shows 1648 as CENVAT Deferred and 2596 as CENVAT Receivable. Note: The program will load the custom eCess amount and custom SHE Cess amount to Purchase account and on inventory. Both the custom eCess and custom SHE Cess are not available in the excise entry as well as in RG registers; as both has to be loaded on inventory.
Excise Entries
First Entry
The program will create the excise entry with ADC VAT amount while taking the value in the CVD field as Yes and in the Deferred field as: No.
Second Entry
In the second entry you see that the Deferred field and the CVD field have the values as: Yes but there is no ADC VAT amount because ADC VAT amount is not considered as deferred.
RG 23 C Part I
The program will create RG 23 C Part I entry with the Received Quantity.
RG 23 C Part II
The program will create RG 23 C Part II entry with the value in the CVD field as: Yes and will update the ADC VAT Amount fields. You can also post the transaction from the Purchase Invoice. Note 1: The user can also calculate the CVD for type: Fixed Asset, G/L account, and Charge (Item) from the Purchase Order / Invoice. Note 2: If CVD is True in Structure then the user should enter the amounts in the CIF and BCD Amount fields on the purchase line of Order/Invoice.
Note 3: Custom ECESS amount and Custom SHE CESS amount will be loaded on inventory and will not be available for CENVAT Credit.
Calculation of CVD through Purchase Credit Memo

Navigation: Purchases Order Processing Credit Memo
To calculate CVD, fill the fields in the Purchase Credit Memo window as follows: On the Header: No: Structure: 10000 CVD
On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: CIF Amount: BCD Amount: Calculate Structure Press F9 to view the excise amount. Post the Credit Memo. Item 1000 Bicycle 10 1000 10000 1000 (per quantity) 1000 (per quantity)

Navigation: Purchases History Posted Credit Memos
G/L Entry
The program creates the following entry: Particulars Custom House Vendor CENVAT Cr. Receivable Purchase Type Dr Dr Cr Cr Amount(Rs) 4643 10000 4244 10399
In this case, the program will reverse the original transaction that has been created after posting the Purchase Order / Invoice. Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Custom Ecess %: Custom SHE CESS %: 20000 16% 4% 2% 1% 2% 1%
Calculation: 20000*16%: 3200*2%: 3200*1%: (10000+3200+64+32)*2%: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 266 (Custom ECESS)
(10000+3200+64+32)*1%: 20000+3296+399 = 23694*4%: Total CVD & ADC Amount:
133 (Custom SHE CESS) 948 (ADC VAT) 3200+ 64+ 32+ 266+133+948= 4643
Excise Entry
The program will create Excise Entry with the value in the CVD field as Yes and will update the ADC VAT Amount.
RG 23 A Part I
The program will create RG 23 A Part I entry with negative value in the Quantity Received field.
RG 23 A Part II
The program will create RG 23 A Part II entry with the value in the CVD field as Yes and will update the ADC VAT Debit field also. You can also post the transaction from the Purchase Return Order. The program will only create RG 23 A/C part I & II entries if the user has Return Order granule. Note 1: The user can also calculate CVD for type: Fixed Asset, G/L account and Charge (Item) from the Purchase Credit Memo/Return Order. Note 2: If the CVD is True in Structure then the user should enter the amount in the CIF and BCD Amount fields on the purchase line of Credit Memo/Return Order.
Calculation of CVD through Sales Order

To calculate CVD, fill the fields in the Sales Order window as follows:
On the Header:
No: Structure: On the Line: Type: Item 10000 CVD
No.: Description: Quantity: Unit Price: Line Amount: CIF Amount: BCD Amount: Calculate Structure
1000 Bicycle 10 1000 10000 1000 (per quantity) 1000 (per quantity)
Press F9 to view the excise amount Post the Sales order.

G/L Entry
The program will create the Credit Excise Payable entry with CVD and ADC VAT amount.
Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Custom Ecess %: Custom SHE CESS %: 20000 16% 4% 2% 1% 2% 1%
Calculation: 20000*16%: 3200*2%: 3200*1%: (10000+3200+64+32)*2%: (10000+3200+64+32)*1%: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 266 (Custom ECESS) 133 (Custom SHE CESS)
20000+3296+399 = 23694*4%: Total CVD & ADC Amount:
948 (ADC VAT) 3200+ 64+ 32+ 266+133+948= 4643
Note: The program will only use the values of Custom eCess and Custom SHE Cess to calculate ADC VAT Amount. There will be no financial impact of Custom eCess and Custom She Cess in case of sales transaction.
Excise Entry
The program will create Excise Entry with value in the CVD field as Yes and will also update the ADC VAT Amount field.
RG 23 A Part I
The program will create RG 23 A Part I entry with value in the Quantity Sold field. In case of sales, the user can also enter the CVD (duties) and ADC VAT amount manually in all duties fields on the sales line only after calculating Structure. Note 1: The user can calculate CVD by selecting Type: Fixed Asset, G/L account, and Charge (item) in the Sales Order/Invoice.
Note 2: : If the CVD field is True in Structure then the user should enter the amount in the CIF and BCD Amount fields on the sales line of Order/Invoice. Note 3: The user can also calculate CVD through the Sales Credit Memo and Return Order. In this case the program will update RG 23 A/C Part I & II entries with the value in the CVD field as Yes. Note 4: There will not be any financial impact of Custom eCess & Custom SHE Cess on sales transaction. The program will use the values of Custom eCess and Custom SHE Cess for calculating the ADC VAT amount.
Calculation of CVD through Transfer Order

Transfer of Normal Items
First purchase normal Items and calculate CVD and ADC VAT through the Purchase Order/Invoice. Then transfer of normal items from one location to another location.
On the Header:
No: Transfer from Code: Transfer to Code: In-transit Code: Structure: On the Line: Item No.: Description: Quantity: Transfer Price: Amount: CIF Amount: BCD Amount: Calculate Structure. Post the Transfer order Ship and Receive. 1001 Blue Green Out. Log CVD
1000 Bicycle 10 1000 10000 1000 (per quantity) 1000 (per quantity)

G/L Entry
The program will credit the Excise Payable with CVD and ADC VAT amount, as goods has been transferred to new location. Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Custom Ecess %: Custom SHE CESS %: 20000 16% 4% 2% 1% 2% 1%
Calculation: 20000*16%: 3200*2%: 3200*1%: (10000+3200+64+32)*2%: (10000+3200+64+32)*1%: 20000+3296+399 = 23694*4%: Total CVD & ADC Amount: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 266 (Custom ECESS) 133 (Custom SHE CESS) 948 (ADC VAT) 3200+ 64+ 32+ 266+133+948= 4643
Note: The program will only use the values of Custom eCess and Custom SHE Cess to calculate the ADC VAT Amount. There will not be any financial impact of Custom eCess and Custom She Cess in case of transfer shipments.
Excise Entry
The program will create Excise Entry with the value in the CVD field as Yes and will update the ADC VAT Amount field with the negative value.
RG 23 A Part I

G/L Entry
The program will debit CENVAT Cr. Receivable account with CVD and ADC VAT
amount.
Note: The program will only use the values of Custom eCess and Custom SHE Cess to calculate the ADC VAT Amount. There will not be any financial impact of Custom eCess and Custom SHE Cess in case of transfer receipts.
Excise Entry
The program will create Excise Entry with the value in the CVD field as Yes and will update the ADC VAT Amount field also.
RG 23 A Part I
The program will create RG 23 A Part I entry with the value in the Quantity Received field.
RG 23 A Part II
The program will create RG 23 A Part II entry with the value in the CVD field as Yes and will update the ADC VAT Amount fields.
Transfer of Capital Items

First purchase the capital items and calculate CVD and ADC VAT through the Purchase Order/Invoice. Then transfer of the capital items from one location to another location.
On the Header:
No: Transfer from code: Transfer to Code: In-transit Code: Structure: On the Line: Item No.: Description: Claim Deferred Excise: Quantity: Transfer Price: Amount: CIF Amount: BCD Amount: Calculate Structure. Post the Transfer Order as Ship and Receive. 1001 Touring Bicycle True 10 1000 10000 1000 (per quantity) 1000 (per quantity) 1030 Loc 1 Loc 2 Out. Log CVD

G/L Entry
First the program will transfer the amount from the Deferred account to the CENVAT Cr. Receivable account and then credit the Excise Payable account. Calculation: In the original entry the program has debited the CENVAT Cr. Receivable A/C with 2596 and CENVAT Deferred A/C with 1648 as you have purchased a capital item. The program has credited the CENVAT Deferred A/C with 1648 and debited the CENVAT Cr. Receivable A/C with 1648; after transferring capital item from Loc 1 to Loc 2. Now, in the CENVAT Cr. Receivable A/C; Loc 1 has a debit balance of 4244 and the program has credited the Excise Payable A/C with 4244 after transferring capital items to Loc 2.
Excise Entry
RG 23 C Part I
The program will create RG 23 C part I entry with the value in the Quantity Sold field.
RG 23 C Part II
The program will create RG 23 C Part II entry and transfer the duties amount from next year to current year.

G/L Entry
Note: The program will debit the CENVAT Cr. Receivable and CENVAT Deferred account. In case of capital item, the program will not consider ADC VAT amount as Deferred. ADC VAT amount will be treated as CENVAT Cr. Receivable.
4643-(948+266+133) = 3296, 3296/2= 1648 The above calculation shows the 1648 as CENVAT Deferred and 2596 as CENVAT Receivable
Note: The program will only use the values of Custom eCess and Custom SHE Cess to calculate the ADC VAT Amount. There will not be any financial impact of Custom eCess and Custom She Cess in case of transfer receipts.
Excise Entry
First Entry
The program will create the excise entry with ADC VAT amount while taking the value in the CVD field as Yes and in the Deferred field as No.
Second Entry
In the second entry the value in both of the Deferred and CVD field is Yes but there is no ADC VAT Amount, because ADC VAT amount should not be consider as deferred.
RG 23 C Part I
The program will create RG 23 C Part I entry with Quantity Received.
RG 23 C Part II
The program will create RG 23 C Part II entry with the value in the CVD field as Yes and will also update the ADC VAT Amount fields. Note 1: If the CVD is True in Structure then user should enter the amounts in CIF and BCD Amount fields on the Transfer Order line. Note 2: All transactions posted from Sales, Purchase and Transfer Order documents can be viewed in RG 23 A/C Part I & II reports.
Excise CENVAT Claim

In case of making adjustment of excise payable amount with CENVAT credit available for the particular ECC number.
Navigation: Financial Management General Ledger General journal
On the Functions menu button, select the Payment option, and then click Excise. A new window opens as:
In the Pay Excise window, the program will show the pending transactions of sales which have to be paid. Click Apply Entries.
In this form all field except Service Tax are non-editable Click the Detail menu button to enter the values. A new form opens, where you can take the credit or settle your excise payable according to the claim setoff list defined in the Excise Setup. The program will show you the total liability according to the duty on each tab. The program will also show you the credit available for each component on the top line.
In the above form, you can see that for each duty the program is displaying liability and remaining liability. When you settle amount of duty with credit available then the remaining liability will be reduced to zero.
In the above form; you see that three tabs are available for RG 23 A Part II, RG 23 C Part II, and PLA. You can settle your components according to the setup. After entering amounts on each tab, close the form.
The program will automatically fill in the fields according to the values entered in the previous form.
Close the form.
Now the program populates the Amount field with the total value that has been adjusted against CENVAT Credit. Post the Journal. Note: As discussed above, the user can take the credit while using Direct Debit to PLA/RG during creating the Sales Order / Invoice. In this case RG 23 A Part II, RG 23 C
Part II, and PLA tabs are editable. In case of CVD, the user can adjust ADC VAT with any component of RG 23 A Part II / RG 23 C Part II / PLA, based on the setup created in the Claim Setoff list.
Calculation of CVD and ADC in case of Trading Items

Calculation of CVD in case of Trading Item through Purchase Order
To calculate CVD, fill the fields in the Purchase Order window as follows:
On the Header:
Buy from Vendor No: Location: Structure: Trading: 10000 Blue (Place a check mark in Trading Location Field in the Location Card). CVD True
On the Line: Type: No.: Description: Quantity: Direct Unit Cost: Line Amount: CIF Amount: BCD Amount: Calculate Structure Press F9 to view the excise amount On the Invoicing tab, Trading Item field will get a default check mark if the Trading Co. field in the Company Information window has been checked. Post the Order. Item 1000 Bicycle 10 1000 10000 1000 (per quantity) 1000 (per quantity)

G/L Entry
The program creates the following entry: Particulars Purchase CENVAT cr. Receivable(Trading) Vendor Custom house Type Dr Dr Cr Cr Amount(Rs) 10399 4244 10000 4643
In this case the program will credit the Custom House with CVD and ADC Amount.
Calculation of CVD and ADCThe program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Custom Ecess %: Custom SHE CESS %: 20000 16% 4% 2% 1% 2% 1%
Note: The program will load the Custom eCess amount and Custom SHE Cess amount to the Purchase account and on inventory. Both the Custom eCess and Custom SHE Cess are not available in the Excise entry as well as in RG 23 D entry as both has to be loaded on inventory.
Excise Entry
The program will create the excise entry with the value in the CVD field as Yes and will also update the ADC VAT Amount field.
RG 23 D Entry
The program will create the RG 23 D entry with the value in the CVD field as Yes and will update the ADC VAT Amount Per Unit, Line Amount Per Unit, Excise Amount Per Unit and Excise Base Amount Per Unit fields. You can also post the transaction from the Purchase Invoice. Note 1: If the CVD is True in Structure then the user should enter the amount in CIF and BCD Amount fields on the purchase line of Order / Invoice.
Note 2: Custom ECESS amount and Custom SHE CESS amount will be loaded on inventory.
Calculation of CVD in case of Trading Item through Sales Order


Customer: Location: Structure: Item: Quantity: Unit Price: Line Amount: Calculate Structure Values. The program will calculate excise according to the defined setups. On the Invoicing tab, Trading Item field will get a default check mark if the Trading Co. field in the Company Information window has been checked. 10000 Blue Excise/CVD 1000 10 1000 10000 (The program will calculate it.)
Post the Order with Ship and Invoice.

Navigation: Sales & Marketing Order Processing History Posted Invoices
G/L Entry
The program creates the following entry: Particulars Customer CENVAT Transfer trading Sales Type Dr Cr Cr Amount(Rs) 14244 4244 10000
Following steps are required to calculate the excise amount on FIFO (First in First Out) basis: Step 1: Purchase has been made for 10 quantities and the CVD amount is Rs. 4244 (4643 (266+133)). Custom eCess and Custom SHE Cess has been loaded on inventory. Step 2: While creating the Sales Order, quantity is 10 Step 3: The program will calculate the CVD amount on FIFO basis. Step 4: From the Purchase Order, Rs. 4244 as CVD amount for 10 quantities have been taken. Step 5: The value will come after calculating structure values.
Excise Entry
The program will create the excise entry with the value in the CVD field as Yes and will update the ADC VAT Amount field with negative value.
RG 23 D Entry
The program will create the RG 23 D entry with negative values. The entry will be created against Purchase Order, where quantity is 10 and CVD amount is 4244. You can also post the transaction through the Sales Invoice Note 1: The CVD amount will be calculated through Structures. The program will calculate the CVD amount on pro-rata basis where the Trading Item field has a check mark in the Sales Order form and that will be displayed in RG 23 D.
Note 2: The CVD amount will be calculated on FIFO basis for the item, purchased through Purchase Order/Invoice. Note 3: There will not be any financial impact of the Custom e Cess and Custom SHE Cess on the sales transaction.
Calculation of CVD in case of Trading Item through Purchase Return Order

Navigation: Purchase Order Processing Return Orders

Vendor: Location: Structure: Applies-to Doc. Type: Applies-to Doc No: Trading: Item: Quantity: Direct Unit Price: Line Amount: CIF Amount: BCD Amount: 10000 Blue (Trading location) CVD Invoice 108511 True 1000 10 1000 10000 (The program will calculate it.) 1000 (per quantity) 1000 (per quantity)
Calculate Structure Values. The program will calculate CVD according to the defined setups. On the Invoicing tab, Trading Item field will get a default check mark if the Trading Co. field in the Company Information window has been checked. Post the Return Order.

Navigation: Purchase Order Processing History Posted Credit Memos
G/L Entry
The program creates the following entry: Particulars Customs house Vendor CENVAT Cr. Receivable (Trading) Purchase Type Dr Dr Cr Cr Amount(Rs) 4643 10000 4244 10399
Note: In this case the program will reverse the original transaction which has been created at the time of posting the Purchase order. Calculation of CVD and ADC The program will calculate the CVD and ADC based on the following information: CIF + BCD Amount: CVD % (BED+AED+SED+SAED): ADC VAT %: Ecess %: SHE CESS %: Custom Ecess %: Custom SHE CESS %: 20000 16% 4% 2% 1% 2% 1%
Calculation: 20000*16%: 3200*2%: 3200*1%: 3200 (CVD) 64 (ECESS) 32 (SHE CESS)
(10000+3200+64+32)*2%: (10000+3200+64+32)*1%: 20000+3296+399 = 23694*4%: Total CVD & ADC Amount:
266 (Custom ECESS) 133 (Custom SHE CESS) 948 (ADC VAT) 3200+ 64+ 32+ 266+133+948= 4643
Excise Entry
The program will create the excise entry with the value in the CVD field as Yes and will update the ADC VAT Amount field with negative value.
RG 23 D Entry
The program will create RG 23 D entry with the value in the CVD field as Yes. Note 1: In case of Purchase Return Order, all values in RG 23 D table will come in negative. Note 2: It is mandatory to enter the document number in the Applies-to Doc. No field while creating Purchase Return Order. Note 3: If the purchase is made and the user has also sold the quantity, after that the user is doing purchase return with the program, then the program will not allow this process. There should be some minimum quantity in RG 23 D for return.
Calculation of CVD in case of Trading Item through Sales Return Order


Customer: Location: Structure: Applies-to Doc. Type: Applies-to Doc No: Trading: Item: Quantity: Direct Unit Price: Line Amount: Calculate Structure Values. The program will calculate CVD according to the defined setup. On the Invoicing tab, Trading Item field will get a default check mark if the Trading Co. field in the Company Information window has been checked. Post the Return Order. 10000 Blue (Trading location) CVD Invoice 103051 True 1000 10 1000 10000 (The program will calculate it.)

Navigation: Sales & Marketing Order Processing History Posted Credit Memos
G/L Entry
The program creates the following entry: Particulars Sales CENVAT Transfer Trading Customer Type Dr Dr Cr Amount(Rs) 10000 4244 14200
The original sales invoice is posted with CVD amount as 4244. The sales invoice has been applied and the program has taken the same CVD amount in the Return Order.
Note: Custom eCess and Custom SHE Cess will be used for calculating ADC VAT Amount.
Excise Entry
The program will create the excise entry with the value in the CVD field as Yes and will update the ADC VAT Amount field.
RG 23 D Entry
The above window shows the value in the Excise Amt Per Unit field as: 424.4. Note 1: In case of Sales Return Order, positive values will come in the RG 23 D table. Note 2: It is mandatory to enter the document number in the Applies-to Doc field while creating the Sales Return Order.
Normal Goods Purchased for Trading and Further Transferred for Manufacturing
Create a Purchase Order / Invoice with a check mark in the Trading Item field and the following values: Quantity: Unit Cost: Line Amount: CIF Amount: BCD Amount: Post the Order/Invoice. The program will create the following entry: Purchase A/C Dr. CENVAT Cr. Rec. (Trading) Dr. Vendor A/C Cr. Customs House A/C Cr. 10399 4244 10000 4643 10 1000 10000 1000 (per quantity) 1000 (per quantity)
Transfer of Goods to Manufacturing Unit from Trading Unit (through Item Re class Journal)
Navigation: Warehouse Planning & Execution Item Reclass. Journal
Fill the fields as follows: Item No.: Location: New Location: Quantity: Applies-to Entry (RG 23 D): 1000 Loc 1 (Enter the trading location, from where goods have to be transferred) Green (Enter the manufacturing location, to which goods has to be transferred) 10 99
Click OK. The selected entry number will be displayed in the Applies-to Entry (RG 23 D) field in the Item Reclass. Journal. Post the Item Reclass. Journal.

G/L Entry
The program will create the following entry. Purchase A/C Purchase (Trading) A/C Cenvat Cr. Receivable A/C Cenvat Cr. Receivable (Trading) Dr. Cr. Dr. Cr. 10000 10000 4244 4244
The purchase and the CVD amount will be transferred to the Manufacturing G/L account from the Trading G/L account. The program will create the RG 23 D entry.
The program will reverse the original entry in RG 23 D table with negative values as the item has been transferred to manufacturing unit with the value in the CVD field as Yes.
Excise Entries
The program will also reverse the excise with negative values in trading location and in manufacturing location. The program will create excise entry with positive values while taking the value in the CVD field as Yes. The program will also create RG 23 A Part I & II entries in manufacturing location.
Create a Purchase Order / Invoice with a check mark in the Trading Item field and the following values: Item Quantity: Unit Cost: Line Amount: CIF Amount: BCD Amount: Excise Amount: Post the Order/Invoice. The program will create the following entry: Purchase A/C CENVAT Cr. Rec. (Trading) Vendor A/C Customs house A/C Dr. Dr. Cr. Cr 10399 4244 10000 4643 1001 (Capital Item Touring Bicycle) 10 1000 10000 1000 (per quantity) 1000 (per quantity) 4643

Navigation: Warehouse Planning & Execution Item Reclass. Journal

Item No.: Location: New Location: Quantity: Applies-to Entry (RG 23 D): 1001 Loc 1 (Enter the trading location from where goods have to be transferred) Green (Enter the manufacturing location to which goods has to be transferred) 10 101
From Apples-to Entry (RG 23 D) lookup list, choose the entry number which you want to transfer. Click OK. The chosen entry number will be displayed in the Applies-to Entry (RG 23 D) field in the Item Reclass. Journal. Post the Item Reclass. Journal.

G/L Entry
The program will create the following entry. Purchase A/C Purchase (Trading) A/C Cenvat Cr. Receivable A/C Cenvat Cr. Deffered Account Cenvat Cr. Receivable (Trading) Dr. Cr. Dr. Dr. Cr. 10000 10000 2596 1648 4244
The program will divide the CVD amount; as the Capital Item field is checked in the Item Card. The program will not consider ADC VAT amount in the Deferred account. The purchase and the CVD amount will be transferred to the Manufacturing G/L accounts from the Trading G/L account. The program will create RG 23 D entry.
The program will reverse the original entry in the RG 23 D table with negative values as the item has been transferred to manufacturing unit.
Excise Entries
The program will reverse the excise entry in trading location with negative values and will also create two more entries in the manufacturing location. First entry will be created for non deferred with taking the value in the CVD field as Yes and the second entry will be created for deferred with taking the value in the CVD as Yes. The program will also create RG 23 C Part I & II entries in manufacturing location. Note: All the transactions related to trading items, purchase, sales, and transfer of items from trading to manufacturing locations can be viewed in the RG 23 D and Quarterly Return for Traders reports.
Transfer of Goods to Manufacturing Unit from Trading Unit through Transfer Order Form
Fill the fields as follows on the Transfer Header: No.: Transfer-From Code: Transfer-to-Code: In-Transit Code Structure 1031 Blue (Enter the trading location from where goods have to be transferred) Green (Enter the manufacturing location, to which goods has to be transferred) OUT.LOG. CVD
Fill the fields as follows on the Transfer Line: Item No.: Description Quantity: Transfer Price: Amount: CIF Amount: BCD Amount: Applies-to Entry (RG 23 D): 1000 Bicycle 10 1000 10000 1000 (per quantity) 1000 (per quantity) 88
From Applies-to Entry (RG 23 D) lookup list, choose the entry number which you want to transfer. The selected entry number will be displayed in the Applies-to Entry (RG 23 D) field in the Transfer Order form. Post the Transfer Order.

G/L Entry
The program will create the following entry. Finished Goods A/C Unrealized FX Losses Cenvat Transferred A/C Tr. Dr. Cr. Cr. 10,738.05 6,494.05 4,244.00
The purchase and the CVD amount will be transferred to the Manufacturing G/L accounts from the Trading G/L account.
Excise Entries
The program will create the excise entry with negative values while taking the value in the CVD field as Yes.
RG 23 D Entry
The program will also create the RG 23 D entry with transaction type Sales, Type Transfer and negative values.

G/L Entry
The program will create the following entry. Unrealized FX Losses Cenvat Transferred A/C Finished Goods A/C Dr. Dr. Cr. 6,494.05 4,244.00 10,738.05
Excise Entry
The program will create the excise entry with CVD true and will also populate the ADC VAT amount.
The program will create RG 23 A Part II entry with the value in the CVD field as Yes and will also update the ADC VAT Amount field.
Transfer of Capital Goods to Manufacturing Unit from Trading Unit through Transfer Order Form
Fill the fields as follows on the Transfer Header: No.: Transfer-From Code: 1032 Blue (Enter the trading location from where goods have to be transferred)
Transfer-to-Code: In-Transit Code Structure
Green (Enter the manufacturing location, to which goods has to be transferred) OUT.LOG CVD
Fill the fields as follows on the Transfer Line: Item No.: Description Quantity: Transfer Price: Amount: CIF Amount: BCD Amount: Applies-to Entry (RG 23 D): 1001 Touring Bicycle 10 1000 10000 1000 (per quantity) 1000 (per quantity) 110
From Apples-to Entry (RG 23 D) lookup list, choose the entry number which you want to transfer. The chosen entry number will be displayed in the Applies-to Entry (RG 23 D) field in the Transfer Order form. Post the Transfer Order.

G/L Entry
The program will create the following entry. Finished Goods A/C Unrealized FX Losses Cenvat Transferred A/c Tr. Dr. Cr. Cr. 10,738.05 6,494.05 4,244.00
The purchase and the CVD amount will be transferred to the Manufacturing G/L account from the Trading G/L account. The program will reverse the original entry in the RG 23 D table with negative values as the item has been transferred to manufacturing unit.
Excise Entries
The program will generate the excise entry in trading location with negative values and CVD field as Yes.
RG 23 D Entry
The program will reverse the original entry in the RG 23 D table with negative values as the item has been transferred to manufacturing unit. Note: All the transactions related to trading items, purchase, sales, and transfer of items from trading locations to manufacturing locations; can be viewed in the RG 23 D and Quarterly Return for Traders reports.

G/L Entry
The program will create the following entry. Cenvat Cr. Deffered Account Unrealized FX Losses Cenvat Cr. Receivable Account Finished Goods A/C Dr. Dr. Dr. Cr. 1,648.00 6,494.05 2,596.00 10,738.05
Excise Entry
RG 23C Part I
RG 23C Part II
The program will create RG 23 A Part II entry with CVD Yes and will also update the ADC VAT Amount fields. Note: The user can also transfer the goods from trading to trading location.
Appendix
Illustration: Import of goods
CIF: BCD: BED: AED: SED: SAED: ECESS: SHE CESS: Custom ECESS: Custom SHE CESS: ADC VAT: 10000 10000 10% 2% 2% 2% 2% 1% 2% 1% 4%
Calculation: CIF + BCD = 20000 20000*16%: 3200*2%: 3200*1%: (10000+3200+64+32)*2%: (10000+3200+64+32)*1%: 20000+3296+399 = 23694*4%: Total CVD & ADC Amount: 3200 (CVD) 64 (ECESS) 32 (SHE CESS) 266 (Custom ECESS) 133 (Custom SHE CESS) 948 (ADC VAT) 3200+ 64+ 32+ 266+133+948= 4643
Microsoft Business Solutions Navision 4.0- Service Tax Credit Register
Table of Contents
Overview of Functionality......................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................3 Reports..............................................................................................................3 Transactions .........................................................................................................4 Purchase Transaction for Populating Service Tax Credit Availed in the Service Tax Credit Register. ..........................................................................................4 Viewing the Posted Transaction ....................................................................5 Service Tax Credit received from Input Service Distributor for Availing Credit. .7 Viewing the Posted Transaction ..................................................................10 Utilizing Service Tax Credit While Making Payment of Service Tax Liability ...13 Viewing the Posted Transaction ..................................................................15 Utilizing Service Tax Credit while Making Payment of Excise Duty.................16 Viewing the Posted Transaction ..................................................................20 Report .................................................................................................................22 Service Tax Credit Register ............................................................................22 Appendix.............................................................................................................28
The Service Tax Credit Register functionality enables the manufacturer of taxable goods or service provider to know the amount of service tax credit that has been availed and utilized for payment of excise duty and service tax liability.
Detailed Setup
Service Tax Credit Register functionality contains the following detailed setup: Service tax Excise
This functionality comprehensively covers the following points: Generation of Service Tax Credit Register based on the service tax registration number. Generation of Service Tax Credit Register with values of service tax credit availed. Generation of Service Tax Credit Register with values of service tax credit utilized towards service tax payments. Generation of Service Tax Credit Register with values of service tax credit utilized towards excise duty payments.
Reports
Service Tax Credit Register report will get updated under this functionality.
Transactions
Purchase Transaction for Populating Service Tax Credit Availed in the Service Tax Credit Register.
To calculate Service Tax, fill the fields in the Purchase Order form as follows: On the Header: Buy from Vendor No: Structure: Payment Method Code: Location Code: On the Line: Type: No.: Description: Location Code: Quantity: Direct Unit Cost: G/L Account 8410 Advertisement Blue 1 20000 10000 Service Tax Cash (On the Invoicing tab) Blue (On the Shipping tab)
20000
Press F9 to view the service tax amount. Post the Order.

G/L Entry
The program creates the following entry: Particulars Advertisement A/C Service Tax Receivable Interim A/C Vendor A/C Vendor A/C Service Tax Recoverable A/C Service Tax Receivable Interim A/C Cash A/C Type Dr. Dr. Cr. Dr. Dr. Cr. Cr Amount (Rs.) 20000 2472 22472 22472 2472 2472 22472
The program will also create service tax entry and service tax entry detail Service Tax Entry
Note 1: The program will populate values in the Credit Availed section in the Service Tax Credit Register from the Service Tax Entry Detail. Note 2: The program will not populate any data in the Credit Availed section if the purchase transaction has been posted for Input Service Distribution location. Note 3: The program will populate values in the Service Tax Credit Register for transactions, related to Service Tax on Advance Payment to Vendors, Service Tax Calculation on G/L to G/L or G/L to Bank in case Service Tax type is Purchase. The program will also populate values in the Service Tax Credit Register for all other types of transactions related to vendors, through which service tax can be calculated and service tax entry detail can be created.
Service Tax Credit received from Input Service Distributor for Availing Credit.
In case some services are purchased in Green location and amount of service tax has to be distributed in Blue location @ 100%.
Enter the following information on header level General tab of the Service tax Distribution form. No.: From Location: Service Tax Group Code: Distribution Basis: Posting Date: ISD1009 (Press F3, and number will appear automatically) Green Adv Previous Years Profit 22/08/07
Click the Function menu button and choose the Apply Entries menu item to select the service tax entry on the basis of From Location and Service Tax Group Code. The program will open the Dist. Input Service Tax Credit form.
Place a check in the Dist. Input Service Tax Credit field for the particular service tax entry which has to be distributed. Click OK to close the form. Note: You can select multiple service tax entries for distribution. After selecting service tax entries, the program will show the service tax amount which has to be distributed in the Applied Amount field on the footer level of the Service tax Distribution form.
Enter the following information on line level of Service tax Distribution form. To Location: Distribution %: Distribution Amount: Blue 100 1236.00
On the footer level of the Service Tax Distribution form, the program will show the following information: Total Distribution %: Total Distribution Amount: Total Applied Amount: 100.00 1236.00 1236.00

Click Navigate to view the G/L entries.
The program will create G/L Entries, Service Tax Entry in receiving locations and Service Tax Distribution entries.
G/L Entry
The program creates the following G/L entry: Particulars Type Service Tax Recoverable A/C DR Blue Location Service Tax Receivable CR (Distribution) A/C Green Location Amount(Rs) 1236.00 1236.00
The program will transfer the distributed service tax amount from the Service Tax Receivable (Distribution) A/C to Service Tax Recoverable A/C and will store the location code in G/L entries. The program will also create service tax entry and service tax entry detail in the Blue Location.
Service Tax Entry
Note: The program will populate values in the Credit Availed section in the Service Tax Credit Register from Service Tax Entry Detail.
Utilizing Service Tax Credit While Making Payment of Service Tax Liability
Navigation: Financial Management General Ledger Periodic Activities Service Tax Payment.
Enter the following information on the Header level of Service Tax Payment form. Service Tax Registration No.: Date Filter: Document No.: Posting Date: Click the Apply Entries menu button. The Pay Service Tax form opens. BJX118910100578 22-08-2007 PAYST01 22-08-2007
The program populates the values in the following fields as: Service Tax Group Code: Description: Payment Liability: Payment Liability (eCess): Payment Liability (She Cess): Credit Available: Credit Available (eCess): Credit Available (She Cess): ADV Advertisement 1200.00 24.00 12.00 3600.00 72.00 36.00
Enter the values in the following fields: Credit Availed: Credit Availed (eCess): Credit Availed (She Cess): Post the Pay Service Tax form. 1200.00 24.00 12.00

G/L Entry
The program creates the following G/L entry: Particulars Type Service Tax Payable A/C DR Service Tax Recoverable A/C CR
Amount(Rs) 1236.00 1236.00
Note 1: The program will populate values in Credit Utilized towards Service Tax Payment section in Service Tax Credit Register. Note 2: The program will show the utilized service tax amount, service tax eCess amount and service tax SHE Cess amount for the particular document number and date.
Utilizing Service Tax Credit while Making Payment of Excise Duty

Navigation: Financial Management General Ledger Periodic Activities Service Tax Service Tax as Excise Credit.
Select the service tax registration number and location E.C.C. number for which you want to avail the service tax credit. Click OK.
The Avail Service Tax Credit form opens. In this form you can select the service tax entry which you want to adjust in excise duty liability. Click OK.
Payment of Excise Duty Navigation: Financial Management General Ledger General Journal
Enter the following Information on the General Journal line to pay excise duty. Posting Date : Document Type: Document No.: Account Type: Account No.: Description: Service Tax Registration No.: E.C.C. No.: 22-08-07 Payment G00076 G/L Account 2994 Excise Payable Account BJX118910100578 BXBVS7543890
On the Functions menu button, select the Payments menu item, and then click Excise.
The Pay Excise window opens.
Click Apply Entries.
The program opens the Excise CENVAT Claim form. In this form values will be populated under the Excise Payable and Service Tax headings as: Excise Payable BED Amount: eCESS Amount: SHE CESS Amount: 400.00 8.00 4.00
Service Tax Service Tax as Excise Credit: eCess on Service Tax as Excise Credit: SHE Cess on Service Tax as Excise Credit: 1200.00 24.00 12.00
Enter the values of service tax credit which has to be utilized for Excise Payable: BED Amount: eCess Amount: SHE Cess Amount: 400.00 8.00 4.00
Close the form.
The program will populate the value in Amount field of the General Journal. Post the General Journal

G/L Entry
The program creates the following G/L entry: Particulars Type Excise Payable A/C DR Service Tax Recoverable A/C CR
Amount(Rs) 412.00 412.00
Note 1: The program will populate values in the Credit Utilized towards Excise Duty Payment section in the Service Tax Credit Register. Note 2: The program will show the utilized service tax amount, service tax eCess amount, and service tax SHE Cess amount for the particular ECC number, document number and date. Note 3: You can utilize the credits of Service Tax while using Direct Debit to PLA/RG functionality through Sales Order/Invoice.
Report
Service Tax Credit Register
Navigation: Financial Management General Ledger Reports Service Tax Reporting Service Tax Credit Register
On the Options tab Fields Start Date End Date ST Registration No. Print Details Description Enter the start date you want to include in the report. Enter the end date you want to include in the report. Choose the service tax registration number you want to include in the report. Place a check mark in this field if you want to print the details of service tax credit availed, service tax credit utilized for service tax payments and service tax credit utilized for excise duty payments. If this field is unchecked, then the report will only show the summary of the service tax credit availed, service tax credit utilized
Fields
Description for service tax payments and service tax credit utilized for excise duty payments.
To print the report, click Print. To see the report on screen, click Preview. If you want to print it later, click Cancel.
Fields description of header level of the report: Fields Name and Address of the assessee PAN No. STC No. Description This field gets value from the Company Information master. This field gets value from the Company Information master. This field populates the same number which has been chosen in the ST Registration No. field in the Report Request form while generating the report.
Fields Description of Details of Service Tax Credit section in the report: Fields Opening Balance Description This field shows the opening balances of service tax, service tax eCess, and service tax SHE Cess. This field shows the summary of credit availed for service tax, service tax eCess, and service tax SHE Cess.
Credit Availed
Fields Total
Description This field shows the sum of values in the Opening Balance field and Credit Availed field for service tax, service tax eCess, and service tax SHE Cess. towards Service Tax This field shows the summary of credit of service tax, service tax eCess and service tax SHE Cess that has been utilized towards service tax payment. Duty This field shows the summary of credit of service tax, service tax eCess and service tax SHE Cess has been utilized towards excise duty payment. This field shows the sum of credit utilized towards Service Tax Payment field and credit utilized towards Excise Duty Payment field for service tax, service tax eCess and service tax SHE Cess. Closing balance of service tax, service tax eCess and service tax SHE Cess after subtracting the total (Credit Utilized towards Service Tax Payment and Credit Utilized towards Excise Duty Payment) from total (Opening Balance and Credit Availed).
Credit Utilized Payment
Credit Utilized Payment
towards
Excise
Total
Closing Balance
Fields description of Credit Availed during the period section in the report: Fields Sr.No. Description The program generates the serial numbers that are sequential numbers incremented by 1. This field shows the date on which service tax credit has been availed. This field shows the number of vendor or distributor. invoice/challan input service
Date Invoice/Challan
Document No. Name of Input Service Distributor
This field shows the document number of service tax entry detail. This field shows the name of the input service distributor from which credit has
Fields Name of Vendor ST Regt. No.
Description been received. This field shows the name of the vendor from which services has been purchased. This field shows the service tax registration number of the vendor or Input service distributor. This field shows the address of the vendor or input service distributor. This field shows the description of services This field shows the total amount paid including service tax, service tax eCess and service tax eCess to Vendor. In case service tax credit is received from input service distributor, this field will show N.A..
Address Description of Services Amount Paid
Service Tax Credit Taken/Received Service Tax eCess Credit Taken/Received Service Tax Taken/Received She Cess
This field shows the amount of service tax credit. This field shows the amount of service tax eCess credit.
Credit This field shows the amount of service tax SHE Cess credit.
Fields description of Credit Utilized towards Service Tax Payments section in the report: Fields Sr.No. Description The program generates the serial numbers that are sequential numbers incremented by 1. This field shows the date on which service tax credit has been utilized for service tax payment. This field shows the document number of the transaction through which service tax credit has been utilized for service tax payment.
Date
Document No.
Fields Service Tax Amount Service Tax Amount (eCess) Service Tax Amount (She Cess)
Description This field shows the utilized amount of service tax. This field shows the utilized amount of service tax eCess. This field shows the utilized amount of service tax SHE Cess.
Fields description of Credit Utilized towards Excise Duty Payments section in the report: Fields Sr.No. Description The program generates the serial numbers that are sequential numbers incremented by 1. This field shows the date on which service tax credit has been utilized for excise duty payment. This field shows the document number of the transaction through which service tax credit has been utilized for excise duty payment. This field shows the ECC number for which service tax credit has been utilized while making payment of excise duty. This field shows the utilized amount of service tax. This field shows the utilized amount of service tax eCess. This field shows the utilized amount of service tax SHE Cess.
Date
Document No.
ECC No.
Service Tax Amount Service Tax Amount (eCess) Service Tax Amount (She Cess)
Appendix
Case: Take an example to understand the Service Tax Credit functionality.
XYZ Ltd. provides services of Rs.100, 000 to B Ltd. Service tax is payable @ 12.36% means, service tax of Rs.12000, education cess of Rs.240 and SHE cess of Rs.120 thereon. Total service tax liability = 12000+240+120 = Rs. 12360 XYZ Ltd. received input services of Rs.80000 from A Ltd. Service tax is charged @ 12.36% means, service tax of Rs.9600, education cess of Rs.192 and SHE cess of Rs.96 thereon. Total service tax = 9600+192+96 = Rs. 9888 XYZ Ltd. receives input tax credit from input service distributor amounting to Rs.3500. XYZ Ltd. also receives excise credit from its location amounting to Rs.4000. Total Input Tax Credit available to XYZ Ltd. which can be utilized to setoff the service tax liability = 9888 + 3500 + 4000 = Rs.17388 Input tax credit utilized = 17388 12360 = Rs.5028 Excess input tax credit of Rs.5028 can be carried forward.
Microsoft Business Solutions Navision 4.0- Multi location No. Series
Table of Contents
Overview of Functionality......................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................3 Setups Required ...................................................................................................4 Location Card ....................................................................................................4 Purchases & Payables Setup ............................................................................8 Sales & Receivables Setup ...............................................................................9 Transactions .......................................................................................................10 Purchase Order/Invoice...................................................................................10 Viewing the Posted Transaction ..................................................................11 Purchase Return Order/Credit Memo..............................................................16 Viewing the Posted Transaction ..................................................................18 Sales Order/Invoice.........................................................................................23 Viewing the Posted Transaction ..................................................................24 Sales Return Order/Credit Memo ....................................................................29 Viewing the Posted Transaction ..................................................................30 Transfer Order.................................................................................................35 Transfer Shipment...........................................................................................35 Viewing the Posted Transaction ..................................................................36 Transfer Receipt..............................................................................................39 Viewing the Posted Transaction ..................................................................40 Purchase Order/Invoice in case of Trading .....................................................43 Viewing the Posted Transaction ..................................................................44 Purchase Return Order/Credit Memo in case of Trading ................................49 Viewing the Posted Transaction ..................................................................50 Sales Order/Invoice in case of Trading ...........................................................55 Viewing the Posted Transaction ..................................................................56 Sales Return Order/Credit Memo in case of Trading.......................................61 Viewing the Posted Transaction ..................................................................62
Multi Location No. Series functionality enables you to maintain the different number series of sales, purchase and transfer orders for different locations.
Detailed Setup
Following setups are required to enable the Multi Location No. Series functionality: Setup Area Location Description Define the number series for Purchase Receipt, Purchase Invoice, Sales Shipment, Sales Shipment (Captive), Sales Invoice, Purchase Credit Memo, Sales Return Receipt, Sales Credit Memo, Purchase Return Shipment, Transfer Shipment, Transfer Receipt, Purchase Invoice (Trading), Sales invoice (Trading), Return Receipt (Trading), Return Shipment (Trading), Purchase Receipt (Trading), Sales Shipment (Trading), Purchase Credit Memo (Trading) , Sales Credit Memo (Trading) on the Numbering tab in the Location Card. Note: Program will record the number series for posted documents on the basis of No. series attached in the above mentioned fields. Define the number series for Purchase Documents on the Numbering tab. Define the number series for Sales Documents on the Numbering tab. Define the number series for Transfer Order and Captive Consumption form on the Numbering tab.
Purchases & Payables Setup Sales & Receivables Setup Inventory Setup
Following comprehensive functionalities are covered under Multi Location No. Series: Provision to define different number series in the Location Card for different types of sales and purchase documents. After posting of sales and purchase documents, the program will store the number series assigned in the Location Card.
Provision to define separate number series in sales and purchase documents in case of trading activity. Provision to define separate number series for the locations used in transfer orders.
Setups Required
Followings setups are required for Multi Location No. Series: Location Card Purchases & Payables Setup Sales & Receivables Setup
Location Card
Numbering tab Fields Description: Field Purchase Receipt Nos. Description Define the number series in the Purchase Receipt Nos. field for the location to record the posted purchase receipt with location specific number series. Earlier this field Information tab. Purchase Invoice Nos. was on the Tax
Define the number series in the Purchase Invoice Nos. field for the location to record the posted purchase invoice with location specific number series. Earlier this field Information tab. was on the Tax
Purchase Return Shipment Nos.
Define the number series in the Purchase Return Shipment Nos. field for the location to record the posted purchase return shipment with location specific number series. Define the number series in the Purchase Credit Memo Nos. field for the location to record the posted purchase credit memo with location specific number series. Define the number series in the Purchase Receipt Nos. (Trading) field for the location to record the posted purchase receipt (Trading) with location specific number series. Define the number series in the Purchase Invoice No. Trading field for the location to record the posted purchase invoice (Trading) with location specific number series. Define the number series in the Return Shipment Nos. (Trading) field for the location to record the posted return shipment (Trading) with location specific number series.
Purchase Credit Memo Nos.
Purchase Receipt Nos. (Trading)
Purchase Invoice No. (Trading)
Purchase Return Shipment Nos. (Trading)
Purchase Credit Memo Nos. (Trading)
Define the number series in the Purchase Credit Memo Nos. (Trading) field for the location to record the posted purchase credit memo (Trading) with location specific number series. Define the number series in the Transfer Shipment Nos. field for the location to record the posted transfer shipment with location specific number series. Define the number series in the Sales Shpt. Nos. (Captive) field for the location to record the posted captive consumption shipment with location specific number series. Earlier this field Information tab. was on the Tax
Transfer Shipment Nos.
Sales Shipment Nos. (Captive)
Transfer Receipt Nos.
Define the number series in the Transfer Receipt Nos. field for the location to record the posted transfer receipt with location specific number series. Define the number series in the Sales Shipment Nos. field for the location to record the posted sales shipment with location specific number series. Earlier this field Information tab. was on the Tax
Sales Shipment Nos.
Sales Invoice Nos.
Define the number series in the Sales Invoice Nos. field for the location to record the posted sales invoice with location specific number series. Earlier this field Information tab. was on the Tax
Sales Return Receipt Nos.
Define the number series in the Sales Return Receipt Nos. field for the location to record the posted sales return receipt with location specific number series. Define the number series in the Sales Credit Memo Nos. field for the location to record the posted sales credit memo with location specific number series.
Sales Credit Memo Nos.
Sales Shipment Nos. (Trading)
Define the number series in the Sales Shipment Nos. (Trading) field for the location to record the posted sales shipment (Trading) with location specific number series. Define the number series in the Sales Invoice No. Trading field for the location to record the posted sales invoice (Trading) with location specific number series. Define the number series in the Sales Return Receipt Nos. (Trading) field for the location to record the posted sales return receipt (Trading) with location specific number series. Define the number series in the Sales Credit Memo (Trading) field for the location to record the posted sales credit memo (Trading) with location specific number series.
Sales Invoice No. Trading
Sales Return Receipt Nos. (Trading)
Sales Credit Memo Nos. (Trading)
Note: After assigning number series in the Location Card, you have to assign one number series for the relevant document in the Purchases & Payables Setup, Sales & Receivables Setup, and Inventory Setup. If you have not defined the number series in the Location Card then the program will take the number series from the Purchases & Payables Setup, Sales & Receivables Setup, and Inventory Setup.
Purchases & Payables Setup

Navigation: Purchase Setup Purchases & Payables Setup
Numbering tab Fields Description Fields Posted Purchase Receipt Nos. (Trading) Description Define the number series for posted purchase receipt (Trading).
Posted Purchase Credit Memo Nos. Define the number series for posted (Trading) purchase credit memo (Trading).
Sales & Receivables Setup

Navigation: Sales & Marketing Setup Sales & Receivables Setup
Numbering tab Fields Description: Fields Posted Sales Shipment Nos. (Trading) Posted Sales Credit Memo Nos. (Trading) Description Define the number series for posted sales shipment (Trading). Define the number series for posted sales credit memo (Trading).
Transactions
Purchase Order/Invoice
Fill in the following information in the Purchase Order: On the Header Buy-from Vendor No.: Location Code: 10000 Blue (In the Location Card mention the purchase invoice number and purchase receipt number.)
On the Line Type: No.: Location Code: Quantity: Direct Unit Cost Excl. VAT: Line Amount Excl. VAT: Item 1000 Blue 10 1000 10000
Post the Purchase Order as Receive and Invoice

Posted Purchase Invoice
Navigation: Purchase History Posted Invoices
The program will post the invoice with purchase invoice number, which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
The program will create the Posted Purchase Invoice with the number which has been assigned in the Blue Location Card.
G/L Entry
The program will create the G/L entry with the same document number which has been assigned in the Location Card. The program will also create Vendor Ledger entry with the same number which has been assigned in the Location Card.
Posted Purchase Receipt
Navigation: Purchase History Posted Receipts
The program will post the receipt with purchase receipt number which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
Posted Purchase Receipts
The program will create Posted Purchase Receipts with the number, which has been assigned in the Blue Location Card. Notes: 1. You can post the same transaction through the Purchase Invoice. 2. If the number series is not defined in the Location Card then the program will take the number series for posted purchase invoice and receipt from the Purchases and Payables setup.
Purchase Return Order/Credit Memo

Fill in the following information in the Purchase Return Order: On the Header Buy-from Vendor No.: Location Code: 10000 Blue (In the Location Card, mention Purchase Credit Memo No., and Purchase Return Shipment No.)
On the Line Type: No.: Location Code: Quantity: Direct Unit Cost Excl. VAT: Line Amount Excl. VAT: Item 1000 Blue 10 1000 10000
Post the Purchase Return Order as Ship and Invoice

Posted Purchase Credit Memo
Navigation: Purchase History Posted Credit Memo
The program will post the credit memo with purchase credit memo number which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
The program will create Posted Purchase Credit Memo with the number which has been assigned in the Blue Location Card. G/L Entry
The program will create the G/L entry with the same document number which has been assigned in the Location Card. The program will also create Vendor Ledger entry with the same number which has been assigned in the Location Card.
Posted Purchase Return Shipment
The program will post the return shipment with purchase return receipt number, which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction
Posted Return Shipment
The program will create Posted Return Shipment with the number which has been assigned in the Blue Location Card.
Notes: 1. You can post the same transaction through the Purchase Credit Memo. 2. If the number series is not defined in the Location Card then the program will take the number series for posted purchase credit memo and return shipment from the Purchases and Payables setup.
Sales Order/Invoice
Fill in the following information in Sales Order: On the Header Sell-to Customer No.: Location Code: 10000 Blue (In the Location Card, mention Sales Invoice No. and Sales Shipment No.)
On the Line Type: Item
No.: Location Code: Quantity: Direct Unit Cost Excl. VAT: Line Amount Excl. VAT:
1000 Blue 10 4000 40000
Post the Sales Order as Ship and Invoice

Posted Sales Invoice
The program will post the invoice with sales invoice number, which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
The program will create Posted Sales Invoice with the number which has been assigned in the Blue Location Card. G/L Entry
The program will create the G/L entry with same document number, which has been assigned in the Location Card. The program will also create the Customer Ledger entry with the same number, which has been assigned in the Location Card.
Posted Sales Shipment
Navigation: Sales & Marketing History Posted Shipments
The program will post the shipment with sales shipment number, which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
The program will create Posted Sales Shipment with the number, which has been assigned in the Blue Location Card. Notes: 1. You can post the same transaction through the Sales Invoice.
2. If the number series is not defined in the Location Card then the program will take the number series for posted sales invoice and shipment from the Sales & Receivables setup.
Sales Return Order/Credit Memo

Fill in the following information in the Sales Return Order: On the Header Sell-to Customer No.: Location Code: 10000 Blue (In the Location Card, mention Sales Credit memo No. and Sales Return Receipt No.)
On the Line Type: Item
No.: Location Code: Quantity: Direct Unit Cost Excl. VAT: Line Amount Excl. VAT:
1000 Blue 10 4000 40000
Post the Sales Return Order as Receive and Invoice

Posted Sales Credit Memo
The program will post the credit memo with sales credit memo number, which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
The program will create Posted Sales Credit Memo with the number, which has been assigned in the Blue Location Card.
G/L Entry
The program will create the G/L entry with same document number which has been assigned in the Location Card. The program will also create Customer ledger entry with the same number which has been assigned in the Location Card.
Posted Sales Return Receipt
The program will post the Return Shipment with sales return shipment number, which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
Posted Return Receipt
The program will create Posted Sales Return Receipt with the number which has been assigned in the Blue Location Card. Notes: 1. You can post the same transaction through the Sales Credit Memo. 2. If the number series is not defined in the Location Card then the program will take the number series for posted sales credit memo and return receipt from the Sales & Receivables setup.
Transfer Order Transfer Shipment

Fill in the following information in the Transfer Order: On the Header Transfer from Code: Blue (In the Location Card, mention the Transfer Shipment No.)
Transfer to Code: In-Transit Code:
Green Out. Log
On the Line Item No: Quantity: Transfer Price: Amount: Post the Transfer Order as Ship 1000 10 1000 10000

Posted Transfer Shipment
The program will post the transfer shipment with transfer shipment number, which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
Posted Transfer Shipment
The program will create Posted transfer shipments with the number, which has been assigned in the Blue Location Card. G/L Entry
The program will create the G/L entry with same document number which has been assigned in the Location Card. The program will also create item ledger and value entries with the same number, which has been assigned in the Location Card.
Transfer Receipt
Fill in the following information in Transfer Order: On the Header Transfer from Code: Transfer to Code: In-Transit Code: Green Blue (In the Location Card, mention the Transfer Receipt No.) Out. Log
On the Line Item No: Quantity: Transfer Price: Amount: 1000 10 1000 10000
Post the Transfer Order as Ship and Receive

Posted Transfer Receipt
The program will post the transfer receipt with transfer receipt number, which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
Posted Transfer Receipt
The program will create Posted transfer receipts with the number, which has been assigned in the Blue Location Card. G/L Entry
The program will create the G/L entry with same document number, which has been assigned in the Location Card. The program will also create item ledger and value entries with the same number, which has been assigned in the Location Card. Notes: 1. If the number series is not defined in the Location Card then the program will take the number series for posted transfer shipment and posted transfer receipt from the Inventory Setup. 2. In case of transferring goods from trading to manufacturing location or manufacturing to trading location, the program will take the number series for posted transfer shipment and receipt from the Location Card accordingly.
Purchase Order/Invoice in case of Trading

Fill in the following information in the Purchase Order: On the Header Buy-from Vendor No.: Location Code: 10000 Blue (In the Location Card, mention Purchase Invoice No. Trading and Purchase Receipt No. Trading) Trading Field must be checked in Location Card. Place a check mark in this field
Trading: On the Line Type: No.: Location Code: Quantity: Direct Unit Cost Excl. VAT: Line Amount Excl. VAT:
Item 1000 Blue 10 1000 10000
Post the Purchase Order as Receive and Invoice

Navigation: Purchase History Posted Invoices
The program will post the invoice with purchase invoice number (trading), which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
The program will create Posted Purchase Invoices with the no. which has been assigned in the Blue Location Card.
G/L Entry
The program will create the G/L entry with same document number, which has been assigned in the Location Card. The program will also create Vendor ledger entry with the same number, which has been assigned in the Location Card. RG 23 D Entry
The program will create the RG 23 D entry with same document number, which has been assigned in the Location Card.
Navigation: Purchase History Posted Receipts
The program will post the receipt with purchase receipt number (trading), which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
The program will create Posted Purchase Receipts with the number, which has been assigned in the Blue Location Card. Notes: 1. You can post the same transaction through the Purchase Invoice. 2. If the number series is not defined in the Location Card then the program will take the number series for posted purchase invoice (Trading) and receipt (Trading) from the Purchases and Payables setup.
Purchase Return Order/Credit Memo in case of Trading

Fill in the following information in the Purchase Return Order: On the Header Buy-from Vendor No.: Location Code: 10000 Blue (In the Location Card, mention Purchase Credit Memo No. Trading and Purchase Returned Shipment No. Trading) Trading Field must be checked in Location Card.
Trading: Applies-to Document Type: Applies-to Document No.: On the Line Type: No.: Location Code: Quantity: Direct Unit Cost Excl. VAT: Line Amount Excl. VAT:
Place a check mark in this field Invoice BL-P-INV-T002
Item 1000 Blue 5 1000 10000
Post the Purchase Return Order as Ship and Invoice

Posted Purchase Credit Memo Navigation: Purchase History Posted Credit Memos
The program will post the credit memo with purchase credit memo number (trading), which has been assigned in the Blue Location Card.
Click Navigate button to view the posted transaction.
The program will create Posted Purchase Credit Memo with the number, which has been assigned in the Blue Location Card. G/L Entry
The program will create the G/L entry with same document number, which has been assigned in the Location card. The program will also create Vendor ledger entry with the same number, which has been assigned in the Location card. RG 23 D Entry
Posted Purchase Return Shipment
The program will post the return shipment with purchase return shipment number (trading), which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
Posted Return Shipment
The program will create Posted Return Shipment with the number, which has been assigned in the Blue Location Card.
Notes: 1. You can post the same transaction through the Purchase Credit Memo. 2. If the number series is not defined in the Location Card then the program will take the number series for posted purchase credit memo (trading) and return shipment (trading) from the Purchases and Payables setup.
Sales Order/Invoice in case of Trading

Fill in the following information in the Sales Order: On the Header Sell-to Customer No.: Location Code: 10000 Blue (In the Location Card, mention Sales Invoice No. trading and Sales Shipment No. trading) Trading field must be checked in Location Card Place a check mark in this field
Trading:
On the Line
Type: No.: Location Code: Quantity: Direct Unit Cost Excl. VAT: Line Amount Excl. VAT:
Item 1000 Blue 5 4000 20000
Post the Sales Order as Ship and Invoice

Posted Sales Invoice Navigation: Sales & Marketing History Posted Invoices
The program will post the invoice with sales invoice number (trading), which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
The program will create Posted Sales Invoices with the number, which has been assigned in the Blue Location Card.
G/L Entry
The program will create the G/L entry with same document number, which has been assigned in the Location Card. The program will also create Customer ledger entry with the same number, which has been assigned in the Location Card. RG 23 D Entry
Navigation: Sales & Marketing History Posted Shipment
The program will post the shipment with sales shipment number (trading), which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
The program will create Posted Sales Shipment with the number, which has been assigned in the Blue Location Card. Notes: 1. You can post the same transaction through the Sales Invoice. 2. If the number series is not defined in the Location Card then the program will take the number series for posted sales invoice (trading) and shipment (trading) from the Sales & Receivables setup.
Sales Return Order/Credit Memo in case of Trading

Fill in the following information in the Sales Return Order: On the Header Sell-to Customer No.: Location Code: 10000 Blue (In the Location Card, mention Sales Credit memo No. (trading) and Sales Return Receipt No
Trading: Applies-to Document Type: Applies-to Document No.: On the Line Type: No.: Location Code: Quantity: Direct Unit Cost Excl. VAT: Line Amount Excl. VAT:
(trading).) Trading must me checked in Location Card. Place a check mark in this field. Invoice BL-S-INV T007
Item 1000 Blue 5 4000 20000
Post the Sales Return Order as Receive and Invoice

The program will post the credit memo with sales credit memo number (trading), which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
The program will create Posted Sales Credit Memo with the number, which has been assigned in the Blue Location Card. G/L Entry
The program will create the G/L entry with same document number, which has been assigned in the Location Card. The program will also create customer ledger entry with the same number, which has been assigned in the Location Card.
RG 23 D Entry
The program will post the Return Receipt with sales return receipt number (trading), which has been assigned in the Blue Location Card. Click Navigate button to view the posted transaction.
The program will create Posted Sales Return Receipt with the number, which has been assigned in the Blue Location Card. Notes: 1. You can post the same transaction through the Sales Credit Memo. 2. If the number series is not defined in the Location Card then the program will take the number series for posted sales credit memo (trading) and return receipt (trading) from the Sales & Receivables setup.
Microsoft Business Solutions Navision 4.0- Stale Cheque
Table of Contents
Overview of Functionality......................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................3 Setups Required ...................................................................................................4 Bank Account Card ...........................................................................................4 Using Stale Cheque Functionality in case Bank Payment Type is Computer Check ..................................................................................................................5 Marking the cheque as Stale in the Check Ledger Entry form, entered through the Bank Payment Voucher...............................................................................5 Viewing the Posted Transaction ....................................................................7 Using Stale Cheque Functionality in case Bank Payment Type is Manual Check ............................................................................................................................15 Marking the cheque as Stale in the Check Ledger Entry form, entered through the Bank Payment Voucher.............................................................................15 Viewing the Posted Transaction ..................................................................16 Using Stale Cheque Functionality in case Bank Payment Type is Blank..........24 Marking the cheque as Stale in the Check Ledger Entry form, entered through the Bank Payment Voucher.............................................................................24 Viewing the Posted Transaction ..................................................................25 Appendix.............................................................................................................31
Stale Cheque functionality enables you to mark the cheque as stale when the stale cheque stipulated period expires. Every bank has its own validity period for the cheque. It can be 3 months, 6 months, and so on. If the cheque is not presented within the specified time period; then the cheque becomes stale.
Detailed Setup
Following setups are required to enable the Stale Cheque functionality: Setup Area Bank Card Location Description Define the stale cheque stipulated period. Define the voucher number series for bank payment voucher and the relevant bank account, if location is defined in the batch created for bank payment voucher. Define the voucher number series for bank payment voucher and the relevant bank account. Place a checkmark in the Activate Cheque Number field. Define general journal templates for bank payments and its batches. Define the source code setup for the bank payment voucher.
Company Information General Ledger Setup General Journal Template Source Code
Following comprehensive functionalities are covered under Stale Cheque: Provision to enter the stale cheque stipulated period in the Bank Account Card. Provision to mark the cheque as stale in Check Ledger Entries form in case bank payment type is Computer Check.
Provision to mark the cheque as stale in Check Ledger Entries form in case bank payment type is Manual Check. Provision to mark the cheque as stale in Bank Ledger Entries form in case bank payment type is Blank.
Setups Required
Bank Account Card
Navigation: Financial Management Cash Management Bank Accounts
Field Description: Field Stale Cheque Stipulated Period Description Enter the stale cheque stipulated period in day/week/month/quarter/year.
Enter the following value in the Bank Account Card: Stale Cheque Stipulated Period: Notes: 6M
1. The program will not accept any negative value in this field. The program will display an error message if the user will enter the negative value. 2. Also the program will not accept any decimal value in this field.
Using Stale Cheque Functionality in case Bank Payment Type is Computer Check
Marking the cheque as Stale in the Check Ledger Entry form, entered through the Bank Payment Voucher
Navigation: Financial Management Cash Management Bank Payment Voucher
Before marking the cheque as Stale, the check ledger entry should be posted. Enter the following details in the Bank Payment Voucher: Batch Name: Posting Date: Document Type: Document No.: Account Type: Account No.: Amount: Balance Account Type: Bank- ST 10-07-07 Payment ST-1 Vendor 10000 15000 Bank Account
Balance Account No.: Bank Payment Type: Cheque No.: Cheque Date:
WWB-OPERATING Computer Check Blank 09-07-07
On the Payments menu button click the Print Check menu item.
Navigate to the Options tab.
Field Description: Field Bank Account Last Check No. Description Choose the bank account in this field. The program populates the value in this field.
Click the Print button. The program will populate the cheque number on the bank journal form. Post the transaction.

Navigation: General Ledger History Registers
G/L Entry
The program creates the following entry: Particulars Vendor A/C Bank A/C Type DR CR Amount(Rs) 15000 15000
Check Ledger Entry: (Before the cheque gets staled)
The program will populate the stale cheque expiry date based on the stale cheque stipulated period mentioned in the Bank Account Card. The Stale Cheque and Cheque Stale Date field will remain unchanged.
Bank Ledger Entry: (Before the cheque gets staled)
The program will populate the stale cheque expiry date based on the stale cheque stipulated period mentioned in the Bank Account Card. The Stale Cheque and Cheque Stale Date field will remain unchanged. Process to stale the cheque:
Navigation: Financial Management Cash Management Bank Card Check Ledger Entries
Field Description: Field Stale Cheque Description A check mark in this field shows that the user has chosen the Stale Check menu item on the Check menu button. This field shows the last date of presenting the cheque. After this date, the cheque will be marked as stale This field shows the date of marking the cheque as stale.
Stale Cheque Expiry Date
Cheque Stale Date
Before marking the cheque as Stale; make sure that work date is greater than the stale cheque expiry date. On the Check menu button, click the Stale Check menu item. Check Ledger Entry: (After the cheque gets staled)
The program will show the value in the Entry Status field as Financially Voided. Also the program will populate the values in the Stale Cheque and Cheque Stale Date fields. The program will pass a reverse transaction as: Particulars Bank A/C Vendor A/C Type DR CR Amount(Rs) 15000 15000
Bank Ledger Entry: (After the cheque gets staled)
Field Description: Field Stale Cheque Description This field shows the status of the cheque as whether the cheque has been marked as stale or not. This field shows the last date of presenting the cheque. After this date the cheque will be marked as stale. This field shows the date of marking the cheque as stale.
Stale Cheque Expiry Date
Cheque Stale Date
The program will populate the values in the Stale Cheque and Cheque Stale Date fields. Notes: 1. The program will not allow you to mark the cheque as Stale before its expiry date. The program will display an error message in case you mark the cheque as Stale. 2. The program will not allow you to stale the cheque; which has already been void. The program will display an error message in case you mark the cheque as Stale. 3. The program will not allow you to edit the Stale Cheque, Stale Cheque Expiry Date, Cheque Stale Date fields. 4. The program will allow you to use the Stale Cheque functionality even if Activate Cheque No. field is unchecked in the General Ledger setup.
5. The user can also do the same transaction through the Payment Journal form. 6. Before using the Bank Payment Voucher, you need to define the voucher number series and the relevant bank account either in the Company Information Card or in the Location Card if location is defined in the General Journal batches.
Using Stale Cheque Functionality in case Bank Payment Type is Manual Check
Before marking the cheque as Stale, the check ledger entry should be posted. Enter the following details in the Bank Payment Voucher: Batch Name: Posting Date: Document Type: Document No.: Bank- ST 10-07-07 Payment ST-3
Account Type: Account No.: Amount: Balance Account Type: Balance Account No.: Bank Payment Type: Cheque No.: Cheque Date: Post the transaction.
Vendor 10000 20000 Bank Account WWB-OPERATING Manual Check 3240 11-07-07

G/L Entry
Check Ledger Entry: (Before the cheque gets staled)
Process to stale the cheque:
Navigation: Financial Management Cash Management Bank Card Check Ledger Entries
Before marking the cheque as Stale, make sure that work date is greater than the stale cheque expiry date. On the Check menu button, click the Stale Check menu item. Check Ledger Entry: (After the cheque gets staled)
The program will change the entry status as Financially Voided. The program will populate the Stale Cheque field and Cheque Stale Date field. The program will pass a reverse transaction as: Particulars Bank A/C Vendor A/C Type DR CR Amount(Rs) 20000 20000
Bank Ledger Entry: (After the cheque gets staled)
The program will populate the values in the Stale Cheque and Cheque Stale Date field. Notes: 1. The program will not allow you to mark the cheque as Stale before its expiry date. The program will display an error message in case you mark the cheque as Stale. 2. The program will not allow you to stale the cheque; which has already been void. The program will display an error message in case you mark the cheque as Stale. 3. The program will not allow you to edit the Stale Cheque, Stale Cheque Expiry Date, Cheque Stale Date fields. 4. The program will allow you to use the Stale Cheque functionality even if Activate Cheque No. field is unchecked in the General Ledger setup. 5. The user can also do the same transaction through the Payment Journal Form. 6. Before using the Bank Payment Voucher, you need to define the voucher number series and the relevant bank account either in the Company Information Card or in the Location Card if location is defined in the General Journal batches.
Using Stale Cheque Functionality in case Bank Payment Type is Blank

Before marking the cheque as Stale, the check ledger entry should be posted. Enter the following details in the Bank Payment Voucher: Batch Name: Posting Date: Document Type: Document No.: Account Type: Account No.: Amount: Balance Account Type: Balance Account No.: Bank Payment Type: Cheque No.: Cheque Date: Bank- ST 10-07-07 Payment ST-6 Vendor 10000 25000 Bank Account WWB-OPERATING Blank 4070 09-07-07
Post the transaction.

G/L Entry
Process to stale the cheque:
Navigation: Financial Management Cash Management Bank Card Ledger Entries
Before marking the cheque as Stale, make sure that work date is greater than the stale cheque expiry date.
On the Check menu button, click the Stale Cheque menu item. Bank Ledger Entry: (After the cheque gets staled)
The program will populate the values in the Stale Cheque and Cheque Stale Date fields. Notes: 1. The program will not allow you to mark the cheque as Stale before its expiry date. The program will display an error message in case you mark the cheque as Stale. 2. The program will not allow you to edit the Stale Cheque, Stale Cheque Expiry Date, Cheque Stale Date fields. 3. The program will allow you to use the Stale Cheque functionality even if Activate Cheque No. field is unchecked in the General Ledger setup. 4. The user can also do the same transaction through the Payment Journal. 5. Before using the Bank Payment Voucher, you need to define the voucher number series and the relevant bank account either in the Company Information Card or in the Location Card if location is defined in the General Journal batches. 6. The program will not pass any reverse transaction when you stale the cheque.
Appendix
Case:
Take the example of company XYZ Ltd. The company issues a cheque to the vendor A Ltd. for Rs.11000, dated 01-11-06, drawn on ABN Amro Bank. The validity period of presenting the cheque is 6 months. A Ltd. presents the cheque on 03-05-07. The bank will dishonor the cheque as the validity period expires on 30-04-07 and the cheque becomes a stale cheque. Financial Impact: In the books of XYZ Ltd.: When the cheque is issued by XYZ Ltd., it will pass the entry for the same thereby reducing its bank balance and debiting the Vendor A/C. A Ltd. A/C Bank A/C Debit (Rs) 11000 Credit (Rs.) 11000
After the cheque is dishonored, a reversal entry will pass; thereby increasing the bank balance and the Vendor A/C will again appear in the books. Bank A/C A Ltd. A/C Debit (Rs) 11000 Credit (Rs) 11000
Microsoft Business Solutions Navision 4.0- New ST3 Return for Service Tax
Table of Contents
Overview of Functionality......................................................................................4 Detailed Setup...................................................................................................4 Comprehensive Functionality ............................................................................4 Reports..............................................................................................................4 Setups Required for ST3 Return...........................................................................5 Service Tax Groups...........................................................................................5 Service Tax Setup ...........................................................................................11 Service Tax Registration No............................................................................12 Company Information ......................................................................................13 Service Tax Return Period ..............................................................................17 Location Card ..................................................................................................20 Customer Card ................................................................................................21 E.C.C. Nos. .....................................................................................................23 Excise No. Series ............................................................................................23 Excise Posting Setup ......................................................................................24 Excise Claim Setoff .........................................................................................24 Item Card ........................................................................................................25 Transactions .......................................................................................................26 Sales Transaction for Populating gross amount received against services provided in ST-3 return....................................................................................26 Viewing the Posted Transaction ..................................................................28 Sales Transaction for populating gross amount for which bills are issued relating to services provided/to be provided in ST-3 return. ............................31 Viewing the Posted Transaction ..................................................................32 Service Tax on Advance Payment Transaction for populating advance received for service to be provided in ST-3 return...........................................34 Viewing the Posted Transaction ..................................................................35 Sales Transaction for populating amount received against export of services in ST-3 return. .....................................................................................................38 Viewing the Posted Transaction ..................................................................40 Sales Transaction for populating amount received against sale of exempted services in ST-3 return. ...................................................................................43 Viewing the Posted Transaction ..................................................................45 Sales Transaction for populating amount received as Pure Agent in ST-3 return...............................................................................................................48 Viewing the Posted Transaction ..................................................................49 Sales Transaction for populating Abatement Claimed in ST-3 return..............52 Viewing the Posted Transaction ..................................................................53 GTA transaction in case of Service Receiver ..................................................57 Viewing the Posted Transaction ..................................................................59 Purchase Transaction for populating Credit of CENVAT Taken on Inputs in ST3 return............................................................................................................62 Viewing the Posted Transaction ..................................................................63 Purchase Transaction for populating Credit of CENVAT Taken on Capital Goods in ST-3 return.......................................................................................66
Viewing the Posted Transaction ..................................................................67 Purchase Transaction for populating Credit of Input Services received in ST-3 return...............................................................................................................70 Viewing the Posted Transaction ..................................................................71 Credit Received from Input Service Distributor................................................74 Viewing the Posted Transaction ..................................................................76 Credit Received from inter unit transfer by a LTU. ..........................................79 Viewing the Posted Transaction ..................................................................80 Viewing the Posted Transaction ..................................................................82 Purchase Transaction for populating the amount of credit taken (for distribution) on input services ..........................................................................84 Viewing the Posted Transaction ..................................................................86 Input Service Distribution Transaction for populating service tax amount distributed in ST-3 return.................................................................................89 Viewing the Posted Transaction ..................................................................92 Purchase Transaction for populating the amount of credit taken (for distribution) on input services ..........................................................................96 Viewing the Posted Transaction ..................................................................98 Payment of GTA Service Tax Liability in Cash ..............................................101 Viewing the Posted Transaction ................................................................103 Update Challan Details ..............................................................................105 Utilizing Service Tax Credit and Excise Credit While Making Payment of Service Tax Liability in Cash. ........................................................................107 Viewing the Posted Transaction ................................................................111 Update Challan Details ..............................................................................114 Utilizing Service Tax Credit and Excise Credit While Making Payment of Arrears of Service Tax Liability in Cash with Interest and Penalty ................115 Viewing the Posted Transaction ................................................................123 Update Challan Details ..............................................................................126 Utilizing Service Tax Credit and Excise Credit while Making Payment of Excise Duty...............................................................................................................128 Viewing the Posted Transaction ................................................................134 ST3 Removed as such/LTU Dtl. ....................................................................137 Report ...............................................................................................................140 Form ST-3 .....................................................................................................140 Filling of ST-3 ................................................................................................156 Fields Description of ST-3 report...................................................................156
ST-3 return for Service Tax functionality enables the assessee who is paying service tax to the Service Tax department monthly or quarterly to generate the ST-3 return with all the relevant information. ST-3 return should be submitted within 25 days of the end of the half year. Half year stands for the period from 1st April to 30th September and 1st October to 31st March.
Detailed Setup
ST-3 return for Service Tax functionality contains the following detailed setup: Service Tax Excise
This functionality comprehensively covers the following points: Provision to define service tax group and service tax registration number as service provider or service receiver Provision to enter the notification number availed against exemption Provision to enter the notification serial number against abatement Provision to enter the premises code and sub-clause number Provision to choose the service tax payment period Provision to choose the status of the company as Private Ltd., Public Ltd., and so on Provision to identify the program if the LTU has opted for central service tax registration number Provision to define the service tax return period Provision to generate service tax payment due date. Provision to post the sales transaction in case export of services Provision to post the sales transaction in case of exempted services Provision to post the sales transaction as Pure Agent. Provision to pay the arrears of service tax liability in cash with interest, penalty, and so on Provision to settle the CENVAT credit of service tax and CENVAT credit of excise duty against arrears of service tax liability Provision to generate the ST-3 return on half yearly basis
Reports
ST-3 return will get updated under this functionality.
Setups Required for ST3 Return

Service Tax Groups
Navigation: Financial Management General Ledger Setup Service Tax Tax Groups
Field Description: Field Sub-clause No. Description Enter the sub clause number (under clause (105) of section 65) for the Service Tax Group code. The value in Sub-clause No. field will be displayed in Sr. No. 3. B. of ST-3 return. After entering Sub-clause No. for service tax group code, click the Functions menu button and select the ST Group/ST Reg. Nos. menu item.
The program will open the ST Group/ST Registration Nos. form to allow you to map the Service Tax Registration No. with Liable to pay Service Tax as for particular service tax group code.
Fields Description: Fields Service Tax Registration No. Liable to pay Service Tax as Description Choose the service tax registration number from lookup list. Choose the option from drop down button. Available options are Service Provider and Service Receiver.
Fields
Description Service Provider: Service provider is liable to pay service tax on sale of taxable services. Service Receiver: Service Receiver is liable to pay service tax on purchase of taxable services. (For example: in case of GTA) The program will place a check mark in Sr. No. 3. A2 of ST-3 return on the basis of the option chosen in this field.
For Service Tax Group Code ADVT. choose the option as Service Provider in Liable to pay Service Tax as field against Service Tax Registration No. of RED Location.
To open the Service Notification Nos. form, click ST Regn. Notification.
Fields Description: Fields Service Tax Registration No. Type Description Choose the service tax registration number from the lookup list. Choose the option from drop down button. The available options are: Exemption and Abatement. If the option is chosen as Exemption then the program will display the value as Y in Sr. No. 3. C1 of ST-3 return. If the option is chosen as Abatement then the program will display the notification serial number in Sr. No. 3D of ST-3 return. Enter the notification number which has to be displayed in Sr. No. 3. C2. of ST-3 return. If the Notification No. field is blank then the program will display the value as N in Sr. No. 3C1 of ST-3 return. Enter the date of the notification. Enter the notification serial number which has to be displayed in Sr. No. 3. D. of ST-3 return. If the Type chosen as Exemption then the program will not populate the notification serial number in Sr. No. 3D of ST-3 return.
Notification No.
Notification Date Notification Sr. No.
For Service Tax Group Code TRANSPORT, click the Functions menu button and select the ST Group/ST Reg. Nos. menu item.
The program will open ST Group/ST Registration Nos. form to allow you to map the Service Tax Registration No. with Liable to pay Service Tax as for particular service tax group code. For Service Tax Group Code TRANSPORT choose the option as Service Receiver in Liable to pay Service Tax as field against Service Tax Registration No. of RED Location.
To enter the notification numbers directly for particular service tax group code, click the Functions menu button and select the Notification Nos. menu item.
Fields Description: Fields Service Tax Registration No. Type Description Choose service tax registration number from lookup list. Choose the option from drop down button. The options available are Exemption and Abatement. If the option is chosen as Exemption then the program will display the value as Y in Sr. No. 3. C1 of ST-3 return And if the option is chosen as Abatement then the program will display the notification serial number in Sr. No. 3D
of ST-3 return. Notification No. Enter the notification number which has to be displayed in Sr. No. 3. C2. of ST-3 return. If the Notification No. field is blank then the program will display the value as N in Sr. No. 3C1 of ST-3 return. Enter the date of the notification. Enter the notification serial number which has to be displayed in Sr. No. 3. D. of ST-3 return. If the Type chosen as Exemption then the program will not populate the notification serial number in Sr. No. 3D of ST-3 return.
Notification Date Notification Sr. No.
Service Tax Setup

Navigation: Financial Management General Ledger Setup Service Tax Tax Setup
Create the Service Tax Setup for Service Tax Group Code ADVT. and TRANSPORT.

Navigation: Financial Management General Ledger Setup Service Tax Tax Registration Nos.
Field Description: Field Premises Code No. Description Enter the premises code number for service tax registration number. The value in this field will be displayed in Sr. No. 2C. of ST-3 return.
Company Information
Place a check mark in the Large Tax Payer field and choose the large tax payer city from the lookup list. The program will display the value as Y in Sr. No. 1A. of ST-3 return on the basis of this setup and will display the city in Sr. No. 1B. of ST-3.
Field Description: Others tab: Field Company Status Description Choose the company status from the drop down button and the program will pace a check mark in Sr. No. 2 D. of ST-3 return on the basis of the option chosen in the field. Note: Following options are already exist: Public limited co Private Limited co Others Government Following options are added: Individual/Proprietary Registered trust Partnership Society /Co-op Society Choose the option as Public Limited Co. in the Company Status field for Cronus India Ltd.
Field Description: Others tab Field ST Payment Period Description Choose the ST payment period as Monthly or Quarterly from the dropdown button. If Monthly option has been selected, then the data of Sr. No. 3F, 4A, 5B and 6 of ST3 should be grouped on monthly basis; otherwise it would be grouped on quarterly basis. Note: If the assessee is individual or partnership firm, then the service tax payment is to be made with in 5 days at the end of quarter. In other cases service tax payment is to be made 5th of the month following the month in which payments are received towards value taxable service except in march. Central STC Applicable Place a check mark in this field in case LTU has centralized registration for service tax. If this filed is checked then values of Sr. No. 5B. (I) (b) (v) and 5B. (II) (b) (v). in ST-3 will not be populated and the same values will be populated in Sr. No. 5B (I) (b) (i)/(ii) and 5B (II) (b) (i) / (ii) in ST-3. Note: If this field is checked then the program will not allow the user to enter the values in From ITU for LTU, From ITU for LTU (eCess) and From ITU for LTU (SHE Cess) fields in ST3 Removed as such/LTU Dtl. Form.
Field Description: Others tab Field ST Payment Due Date Description Enter the Payment Due Date of Service tax payment which is normally 05th of the next of service tax liability. Note: Due date for making payment of service tax for the month of March is 31st March. In this case program will automatically generate the payment Due Date as 31st march.
Choose the option as Monthly in ST Payment Period field and option as Public Limited Co. in Company Status field and enter ST payment due date as 5.
Service Tax Return Period

Navigation: Financial Management General Ledger Setup Service Tax Service Tax Return period
Fields Description: Fields Year Return Period Return Filling Due Date Actual Return Filed Date Description Enter the Year for which Service Tax Return has to be submitted. Choose the Return Period from drop down button. Options are Apr-Sep and Oct-Mar. Enter the due date of Filling of ST-3 return. Enter the actual date on which ST-3 return has been filled to the Service Tax department.
Note: There must be service tax return period, one year preceding to the existing service tax return period. Also generate the payment due date for the same. Example: On generating Service Tax return (ST-3) for the period April-Sept 2007, you should enter the service tax return period for April-Sept and Oct-March for the year 2006-07. On the Functions menu button click the Generate Payment Due Dated menu item to generate the payment due date of service tax.
Service Tax Return Period
The program will generate the Service Tax period Due Dates
Fields Description: Fields ST Payment Period Description The value in the field will be populated on the basis of ST Payment Period chosen in company information master. The value in this field will be populated on the basis of Return Period chosen in
Month/Qtr
Service Tax Return Period form. Payment Due Date Due date of service tax payment will be generated on the basis of entered value in ST Payment Due Day in company information master.
On the Return Period menu button click the Return Period Due Dates menu item to view/modify the generated service tax period due dates.
The program will open the Service tax Period Due Dates form.
Location Card
Choose the Service Tax Registration No. and E.C.C. No. in the Location card of RED.
Choose the Service Tax Registration No. and E.C.C. No. in the Location card of SILVER which is Input Service Distributor.
Customer Card
Navigation: Sales & Marketing Sales Customers
Field Description: Tax Information tab Field Nature of Services Description Choose the nature of services as exempted or export from drop down button. If option Exempted or export is selected then Service tax amount calculated in transaction will be zero and service tax entry will be created with zero Service tax amount and display the charged amount of exported/exempted service provided/to be provided in Sr. No. 3. F. (II) (l) & (m) of ST-3 return. When payment has been received from Customer program will also create Service Tax Entry Detail with Zero Service Tax amount and display the received amount against export/exempted service. In Sr. No. 3. F. (I) (a) (i) and 3. F. (I) (i) & (ii) of ST-3 return.
E.C.C. Nos.
Navigation: Financial Management General Ledger Setup Excise E.C.C. Nos.
Choose the Type of Unit as Manufacturer from drop down button for E.C.C. Nos. of RED and SILVER locations.
Excise No. Series

Navigation: Financial Management General Ledger Setup Excise Excise No. Series.
Assign Type as LTU RM with BLUE location E.C.C. No. and also assign type as RG23A Part I, RG23A Part II, RG23C Part I and RG23C Part II with RED Location E.C.C. No.
Excise Posting Setup

Navigation: Financial Management General Ledger Setup Excise Posting Setup.
Create the Excise posting setup with the combination of Excise Bus. Posting Group and Excise Prod. Posting Group.
Excise Claim Setoff

Navigation: Financial Management General Ledger Setup Excise Claim Setoff.
In the Claim Setoff list, you can map a duty against another duty which you want to take the credit while using CENVAT Claim form.
Item Card
On the Item menu button, select the ECC No. /Item Categories menu item to assign Type of item with E.C.C. No.
Assign Type of Item as Raw Material with BLUE location E.C.C. No.
Transactions
Sales Transaction for Populating gross amount received against services provided in ST-3 return.
To calculate Service Tax, fill the fields in the Sales Order form as follows: On the Header: Sell-to Customer No: Structure: Payment Method Code: Location Code: On the Line: Type: No.: Description: Location Code: Quantity: Unit Price: Line Amount: Calculate Structure Press F9 to view the service tax amount. Post the Order. 50000 Service Tax Cash (On the Invoicing tab) RED (On the Shipping tab)
G/L Account 8470 Advertising & Media A/C RED 1 100000 100000

G/L Entry
The program creates the following entry: Particulars Advertising & Media A/C Service Tax Payable Interim A/C Customer A/C Cash A/C Service Tax Payable A/C Service Tax Payable Interim A/C Customer A/C Type Cr. Cr. Dr. Dr. Cr. Dr. Cr Amount (Rs.) 100000 12360 112360 112360 12360 12360 112360
The program will also create service tax entry and service tax entry detail Service Tax Entry
The program will display the following values in Sr. No. 3.F. (I) (a) (i) of ST-3 return for the month of April. Sr. No. 3 F (I) (a) (i) Against Service Provided Amount 100000
The program will display the following values in Sr. No. 3.F. (I) (f) (iv) of ST-3 return for the month of April. Sr. No. 3 F (I) (f) (iv) Amount Value on which service tax is payable @ 100000 12% The program will display the following values in Sr. No. 3.F. (I) (g) (h) (i) of ST-3 return for the month of April. Sr. No. 3 F (I) (g) (h) (i) Service Tax payable Education Cess Payable Secondary and higher education Cess Payable Amount 12000 240 120
The program will display the following values in Sr. No. 3.F. (II) (j) of ST-3 return for the month of April. Sr. No. 3 F (II) (j) Amount Gross amount for which 100000 bills/invoices/challans are issued relating to service provided/to be provided (including export of service and exempted service) Note1: You can also post the same transaction through Sales Invoice. Note 2: The program will display the values in the above Serial Numbers from Service Tax entries and Service Tax entry details which has been created through Sales Orders/Invoices, Sales Return Order/Credit Memo, General Journal, Journal Voucher, Cash Receipt Voucher, Payment Journal, Cash Receipt Voucher, Bank Receipt Voucher and Service Tax Opening form.
Sales Transaction for populating gross amount for which bills are issued relating to services provided/to be provided in ST-3 return.
To calculate Service Tax, fill the fields in the Sales Order form as follows: On the Header: Sell-to Customer No: Structure: Location Code: On the Line: Type: No.: Description: Location Code: Quantity: Unit Price: Line Amount: Calculate Structure Press F9 to view the service tax amount. Post the Order. G/L Account 8470 Advertising & Media A/C RED 1 200000 200000 50000 Service Tax RED (On the Shipping tab)

G/L Entry
The program creates the following entry: Particulars Advertising & Media A/C Service Tax Payable Interim A/C Customer A/C Type Cr. Cr. Dr. Amount (Rs.) 200000 24720 224720
The program will also create service tax entry Service Tax Entry
The program will display the following values in Sr. No. 3.F. (II) (j) of ST-3 return for the month of April. Sr. No. 3 F (II) (j) Amount Gross amount for which 200000 bills/invoices/challans are issued relating to service provided/to be provided (including export of service and exempted service) Note 1: You can also post the same transaction through Sales Invoice Note 2: The program will display the values in the above Serial Number from Service Tax entries which has been created through Sales Orders/Invoices, Sales Return Order/Credit Memo, General Journal, Journal Voucher and Service Tax Opening form.
Service Tax on Advance Payment Transaction for populating advance received for service to be provided in ST-3 return.
Navigation: Financial Management Cash Management Bank Receipt Voucher
To calculate Service Tax, fill the fields in the Bank Receipt Voucher as follows: First Line: Posting Date: Document Type: Document No.: Serv. Tax on Advance Payment: Account Type: Account No.: Description: Service Tax Group Code: Service Tax Registration No.: Credit Amount: Second Line: Posting Date: Document Type: Document No.: Account Type: Account No.: Description: Debit Amount: Post the Bank Receipt Voucher. 30-04-07 Payment BR001 Bank Account GIRO GIRO Bank 50000 30-04-07 Payment BR001 True Customer 30000 John Haddock Insurance Co. ADVT. RED118910100578 50000

G/L Entry
The program creates the following entry: Particulars Customer A/C Service Tax Payable A/C Service Tax Payable Interim A/C Bank A/C Type Cr. Cr. Dr. Dr. Amount (Rs.) 50000 5500.18 5500.18 50000
The program will also create service tax entry Service Tax Entry
The program will display the following values in Sr. No. 3.F. (I) (a) (ii) of ST-3 return for the month of April. Sr. No. 3 F (I) (a) (ii) In advance service to be provided Amount 44499.82
The program will display the following values in Sr. No. 3.F. (I) (f) (iv) of ST-3 return for the month of April. Sr. No. 3 F (I) (f) (iv) Amount Value on which service tax is payable @ 44499.82 12% The program will display the following values in Sr. No. 3.F. (I) (g) (h) (i) of ST-3 return for the month of April. Sr. No. 3 F (I) (g) (h) (i) Service Tax payable Education Cess Payable Secondary and higher education Cess Payable Amount 5339.98 106.80 53.40
The program will display the following values in Sr. No. 3.F. (II) (j) of ST-3 return for the month of April. Sr. No. 3 F (II) (j) Amount Gross amount for which 44499.82 bills/invoices/challans are issued relating to service provided/to be provided (including export of service and exempted service) Note: You can also post the same transaction through Cash Receipt Voucher, Bank Receipt Voucher, Payment Journal, Cash Receipt Journal and General Journal.
Sales Transaction for populating amount received against export of services in ST-3 return.
Select the Nature of Services as Export on 40000 Mumbai Graphics Company Customer Card.
In case of Export Sale of Services, fill the fields in the Sales Order form as follows: On the Header: Sell-to Customer No: Structure: Payment Method Code: Location Code: On the Line: Type: No.: Description: Location Code: Quantity: Unit Price: Line Amount: Calculate Structure Press F9 (The program will not calculate Service Tax in case of Export Sale of Services) Post the Order. G/L Account 8470 Advertising & Media A/C RED 1 500000 500000 40000 (Nature of Services should be Export in Customer Card) Service Tax Cash (On the Invoicing tab) RED (On the Shipping tab)

G/L Entry
The program creates the following entry: Particulars Type Advertising & Cr. Media A/C Customer A/C Dr. Cash A/C Dr. Customer A/C Cr. Amount (Rs.) 500000 500000 500000 500000
In this case program will not calculate any service tax amount. The program will also create service tax entry and Service Tax entry detail. Service Tax Entry
The program will create service tax entry with Zero amount of service tax, eCess and SHE Cess. And also updates the Nature of Services as Export in Service Tax Entry. Service Tax Entry Detail
The program will create service tax entry detail with Zero amount of service tax, eCess and SHE Cess. And also updates the Nature of Services as Export in Service Tax Entry Detail. The program will display the following values in Sr. No. 3.F. (I) (a) (i) of ST-3 return for the month of April.
Sr. No. 3 F (I) (a) (i) Against Service Provided
Amount 500000
The program will display the following values in Sr. No. 3.F. (I) (c) (i) of ST-3 return for the month of April. Sr. No. 3.F. (I) (c) (i) Amount received against export of service Amount 500000
The program will display the following values in Sr. No. 3.F. (II) (j) of ST-3 return for the month of April. Sr. No. 3 F (II) (j) Amount Gross amount for which 500000 bills/invoices/challans are issued relating to service provided/to be provided (including export of service and exempted service) The program will display the following values in Sr. No. 3.F. (II) (l) of ST-3 return for the month of April. Sr. No. 3 F (II) (l) Amount Amount charged for exported service 500000 provided/to be provided. Note 1: You can post the same transaction through Sales Invoice . Note 2: The program will display the values in the above Serial Number from Service Tax entries and Service Tax entry details which has been created through Sales Orders/Invoices, Sales Return Order/Credit Memo, General Journal, Journal Voucher, Cash Receipt Voucher, Payment Journal, Cash Receipt Voucher, and Bank Receipt Voucher Note 3: Those Service Tax Entries having the value export in Nature of Services field will not be allowed in Service Tax Adjustment form for adjustments.
Sales Transaction for populating amount received against sale of exempted services in ST-3 return.
Select the Nature of Services as Exempted on Customer Card No. 60000 (Blanemark Hifi Shop).
In case sale of Exempted Services, fill the fields in the Sales Order form as follows: On the Header: Sell-to Customer No: Structure: Payment Method Code: Location Code: On the Line: Type: No.: Description: Location Code: Quantity: Unit Price: Line Amount: Calculate Structure Press F9 (The program will not calculate Service Tax in case of exempted Services) Post the Order. G/L Account 8470 Advertising & Media A/C RED 1 50000 50000 60000 (Nature of Services should be Exempted in Customer Card) Service Tax Cash (On the Invoicing tab) RED (On the Shipping tab)

G/L Entry
In this case program will not calculate any service tax amount. The program will also create service tax entry and service tax entry detail. Service Tax Entry
The program will create service tax entry with Zero amount of service tax, eCess and SHE Cess. And also updates the Nature of Services as Exempted in Service Tax Entry. Service Tax Entry Detail
The program will create service tax entry detail with Zero amount of service tax, eCess and SHE Cess. And also updates the Nature of Services as Exempted in Service Tax Entry detail. The program will display the following values in Sr. No. 3.F. (I) (a) (i) of ST-3 return for the month of April.
Sr. No. 3 F (I) (a) (i) Against Service Provided
Amount 50000
The program will display the following values in Sr. No. 3.F. (I) (c) (ii) of ST-3 return for the month of April. Sr. No. 3.F. (I) (c) (ii) Amount Amount received/paid# towards exempted 50000 services (other than export of service, i.e., (i) above) The program will display the following values in Sr. No. 3.F. (II) (j) of ST-3 return for the month of April. Sr. No. 3 F (II) (j) Amount Gross amount for which 50000 bills/invoices/challans are issued relating to service provided/to be provided (including export of service and exempted service) The program will display the following values in Sr. No. 3.F. (II) (m) of ST-3 return for the month of April. Sr. No. 3 F (II) (m) Amount Amount charged for exempted service 50000 provided/to be provided (other than export of service given at (1) above) Note 1: You can post the same transaction through Sales Invoice. Note 2: The program will display the values in the above Serial Number from Service Tax entries and Service Tax entry details which has been created through Sales Orders/Invoices, Sales Return Order/Credit Memo, General Journal, Journal Voucher, Cash Receipt Voucher, Payment Journal, Cash Receipt Voucher, and Bank Receipt Voucher. Note 3: Those Service Tax Entries having the value exempted in Nature of Services field will not be allowed in Service Tax Adjustment form for adjustments.
Sales Transaction for populating amount received as Pure Agent in ST-3 return.
Field Description: Invoicing tab Field ST Pure Agent Description Place a check mark in this field if the amount of services is charged as pure agent.
In case of Pure Agent, fill the fields in the Sales Order form as follows: On the Header: Sell-to Customer No: Structure: Payment Method Code: Location Code: ST Pure Agent: On the Line: Type: G/L Account 10000 Service Tax Cash (On the Invoicing tab) RED (On the Shipping tab) True (In Invoicing tab)
No.: Description: Location Code: Quantity: Unit Price: Line Amount: Calculate Structure
8470 Advertising & Media A/C RED 1 20000 20000
Press F9 (The program will not calculate Service Tax in case of pure agent) Post the Order.

G/L Entry
In this case program will not calculate any service tax amount. The program will also create service tax entry and service tax entry detail.
Service Tax Entry
The program will create service tax entry with Zero amount of service tax, eCess and SHE Cess. And also updates the ST Pure Agent field with value Yes in Service Tax Entry.
The program will create service tax entry detail with Zero amount of service tax, eCess and SHE Cess. And also updates the ST Pure Agent field with value Yes in Service Tax Entry Detail. The program will display the following values in Sr. No. 3.F. (I) (a) (i) of ST-3 return for the month of April. Sr. No. 3 F (I) (a) (i) Against Service Provided Amount 20000
The program will display the following values in Sr. No. 3.F. (I) (c) (iii) of ST-3 return for the month of April. Sr. No. 3.F. (I) (c) (iii) Amount received as/(paid to #) pure agent Amount 20000
The program will display the following values in Sr. No. 3.F. (II) (j) of ST-3 return for the month of April. Sr. No. 3 F (II) (j) Amount Gross amount for which 20000 bills/invoices/challans are issued relating to service provided/to be provided (including export of service and exempted service) The program will display the following values in Sr. No. 3.F. (II) (n) of ST-3 return for the month of April. Sr. No. 3 F (II) (n) Amount charged as pure agent Amount 20000
Note 1: You can post the same transaction through Sales Invoice. Note 2: The program will display the values in the above Serial Number from Service Tax entries and Service Tax entry details which has been created through Sales Orders/Invoices, Sales Return Order/Credit Memo, General Journal, Journal Voucher,
Cash Receipt Voucher, Payment Journal, Cash Receipt Voucher, and Bank Receipt Voucher. Note 3: Those Service Tax Entries having the ST Pure Agent field Yes will not be allowed in Service Tax Adjustment form for adjustments.
Sales Transaction for populating Abatement Claimed in ST-3 return.

In case of Abatement Claimed, fill the fields in the Sales Order form as follows: On the Header: Sell-to Customer No: Structure: Payment Method Code: Location Code: 50000 Service Tax Cash (On the Invoicing tab) RED (On the Shipping tab)
On the Line: Type: No.: G/L Account 8470
Description: Location Code: Quantity: Unit Price: Line Amount: Calculate Structure
Advertising & Media A/C RED 1 50000 50000
Press F9 to view the service tax amount. (In this case Abatement % in service tax setup is 75) Post the Order.

G/L Entry
The program creates the following entry: Particulars Advertising & Media A/C Service Tax Payable Interim A/C Customer A/C Cash A/C Service Tax Payable A/C Service Tax Payable Interim A/C Customer A/C Type Cr. Cr. Dr. Dr. Cr. Dr. Cr. Amount (Rs.) 50000 1545 51545 51545 1545 1545 51545
In this case program has calculated service tax after considering abatement %. The program will also create service tax entry and service tax entry detail.
Service Tax Entry
The program will display the following values in Sr. No. 3.F. (I) (a) (i) of ST-3 return for the month of April. Sr. No. 3 F (I) (a) (i) In advance service to be provided Amount 50000
The program will display the following values in Sr. No. 3.F. (I) (d) of ST-3 return for the month of April. Sr. No. 3 F (I) (d) Abatement amount claimed Amount 37500
The program will display the following values in Sr. No. 3.F. (I) (f) (iv) of ST-3 return for the month of April. Sr. No. 3 F (I) (f) (iv) Amount Value on which service tax is payable @ 12500 12%
The program will display the following values in Sr. No. 3.F. (I) (g) (h) (i) of ST-3 return for the month of April. Sr. No. 3 F (I) (g) (h) (i) Service Tax payable Education Cess Payable Secondary and higher education Cess Payable Amount 1500 30 15
The program will display the following values in Sr. No. 3.F. (II) (j) of ST-3 return for the month of April. Sr. No. 3 F (II) (j) Amount Gross amount for which 50000 bills/invoices/challans are issued relating to service provided/to be provided (including export of service and exempted service) The program will display the following values in Sr. No. 3.F. (II) (o) of ST-3 return for the month of April. Sr. No. 3 F (II) (o) Amount claimed as abatement Amount 37500
Note 1: You can also post the same transaction through Sales Invoice. Note 2: The program will display the values in the above Serial Number from Service Tax entries and Service Tax entry details which has been created through Sales Orders/Invoices, Sales Return Order/Credit Memo, General Journal, Journal Voucher, Cash Receipt Voucher, Payment Journal, Cash Receipt Voucher, Bank Receipt Voucher and Service Tax Opening form.
GTA transaction in case of Service Receiver

Place a check mark in the GTA field in Vendor Card No. 30000 (Cool wood Technologies).
In case of GTA, fill the fields in the Purchase Order form as follows: On the Header: Buy-from Vendor No: Structure: Location Code: Payment Method Code: GTA Service Type: Consignment Note No.: On the Line: Type: No.: Description: Location Code: Quantity: Direct Unit Cost: Line Amount: Calculate Structure Press F9 to view the Service Tax amount. Post the Order. G/L Account 8450 (Service Tax Group Code in G/L card is Transport) Delivery Expenses RED 1 50000 50000 30000 Service Tax RED (On the Shipping tab) Cash (On the Invoicing tab) Inward GTA (On the Tax Information tab) CONSIGN-08 (On the Tax Information tab)

Navigation: Purchase History Posted Invoice
G/L Entry
The program creates the following entry: Particulars Delivery Expenses A/C Service Tax Payable Interim A/C Service Tax Receivable Interim A/C Vendor A/C Cash A/C Service Tax Payable A/C Service tax Payable Interim A/C Vendor A/C Service Tax Entry Type Dr. Cr. Dr. Cr. Cr. Cr. Dr. Dr. Amount (Rs.) 50000 6180 6180 50000 50000 6180 6180 50000
The program will display the following values in Sr. No. 3.F. (I) (a) (i) of ST-3 return for the month of April. Sr. No. 3.F. (I) (a) (i) Against Service Provided Amount 50000
The program will display the following values in Sr. No. 3.F. (I ) (f) (iv) of ST-3 return for the month of April. Sr. No. 3.F. (I ) (f) (iv) Amount Value on which Service tax is Payable @ 50000 12 % The program will display the following values in Sr. No. 3.F. (I) (g), (h), (i) of ST-3 return for the month of April. Sr. No. 3.F. (I ) (g), (h), (i) Service Tax Payable Education Cess Payable Secondary and higher education Cess Payable Amount 6000 120 60
Note1: You can also post the same transaction through Purchase Invoice, Purchase Journal, and General Journal. Note 2: The program will display the values of GTA related transactions in Sr. No. 3F only if the service tax group code has been assigned as Service Receiver in the setup.
Purchase Transaction for populating Credit of CENVAT Taken on Inputs in ST-3 return.
In case of purchase of Inputs, fill the fields in the Purchase Order form as follows: On the Header: Buy-from Vendor No: Structure: Location Code: 10000 Excise. RED (On the Shipping tab)
On the Line: Type: No.: Description: Location Code: Quantity: Direct Unit Cost: Item 1000 Bicycle RED 10 10000
100000
Press F9 to view the Excise amount. Post the Order.

G/L Entry
The program creates the following entry: Particulars Purchase A/C CENVAT Cr. Receivable A/C Vendor A/C Excise Entry Type Dr. Dr. Cr. Amount (Rs.) 100000 16480 116480
RG 23 A Part I entry
The program will display the following values in Sr. No. 5B. (I) (b) (i) of ST-3 return for the month of April. Sr. No. 5B. (I) (b) (i) On Inputs Amount 16000
The program will display the following values in Sr. No. 5B. (II) (b) (i) of ST-3 return for the month of April. Sr. No. 5B. (II) (b) (i) On Inputs Amount 480
Note 1: The program will display the values in the above Serial Number from RG 23 A Part II entry which has been created through Purchase Orders/Invoices, Purchase Return Orders/Credit Memos and Transfer orders.
Purchase Transaction for populating Credit of CENVAT Taken on Capital Goods in ST-3 return.
In case of purchase of capital goods, fill the fields in the Purchase Order form as follows: On the Header: Buy-from Vendor No: Structure: Location Code: On the Line: Type: No.: Description: Location Code: Quantity: Direct Unit Cost: Line Amount: Item 80206 (capital item true in item Card) Webcam RED 10 10000 100000 10000 Excise. RED (On the Shipping tab)
Calculate Structure Press F9 to view the Excise amount. Post the Order.

G/L Entry
The program creates the following entry: Particulars Purchase A/C CENVAT Cr. Receivable A/C CENVAT Cr. Deferred A/C Vendor A/C Excise Entry Type Dr. Dr. Dr. Cr. Amount (Rs.) 100000 8240 8240 116480
The program will display the following values in Sr. No. 5B. (I) (b) (ii) of ST-3 return for the month of April. Sr. No. 5B. (I) (b) (ii) On Capital Goods Amount 8000
The program will display the following values in Sr. No. 5B. (II) (b) (ii) of ST-3 return for the month of April. Sr. No. 5B. (II) (b) (ii) On Capital Goods Amount 240
Note 1: The program will display the values in the above Serial Number from RG 23 C Part II entry which has been created through Purchase Orders/Invoices, Purchase Return Orders/Credit Memos and Transfer orders, Claim Deferred Excise batch job.
Purchase Transaction for populating Credit of Input Services received in ST-3 return.
In case of purchase of input services, fill the fields in the Purchase Order form as follows: On the Header: Buy-from Vendor No: Structure: Payment Method Code: Location Code: 10000 Service Tax Cash RED (On the Shipping tab)
On the Line: Type: No.: Description: Location Code: G/L Account 8470 Advertising & Media A/C RED
Quantity: Direct Unit Cost: Line Amount: Calculate Structure
1 20000 20000
Press F9 to view the Service Tax amount. Post the Order.

G/L Entry
The program creates the following entry: Particulars Advertising & Media A/C Service Tax Receivable Interim A/C Vendor A/C Cash A/C Service Tax Recoverable A/C Service Tax Receivable Interim A/C Vendor A/C Service Tax Entry Type Dr. Dr. Cr. Cr. Dr. Cr. Dr. Amount (Rs.) 20000 2472 22472 22472 2472 2472 22472
The program will display the following values in Sr. No. 5B. (I) (b) (iii) of ST-3 return for the month of April. Sr. No. 5B. (I) (b) (iii) On input Services received directly Amount 2400
The program will display the following values in Sr. No. 5B. (II) (b) (iii) of ST-3 return for the month of April. Sr. No. 5B. (II) (b) (iii) On input Services received directly Amount 72
Note 1: The program will display the values in the above Serial Number from Service Tax entry details which has been created through Purchase Orders/Invoices, Purchase Return Orders/Credit Memos, General Journal, Journal Voucher, Cash Payment Voucher, Payment Journal, Bank Payment Voucher and Service Tax Opening form.
Credit Received from Input Service Distributor

In this case credit of service tax has been transferred from Silver location (ISD) to Red location.
Enter the following information on header level General tab of the Service tax Distribution form. No.: From Location: Service Tax Group Code: Distribution Basis: Posting Date: IPI000012 (Press F3, and number will appear automatically) Silver Adv Previous Years Profit 30/04/07
Click the Function menu button and choose the Apply Entries menu item to select the service tax entry on the basis of From Location and Service Tax Group Code.
The program will open the Dist. Input Service Tax Credit form. Place a check in the Dist. Input Service Tax Credit field for the particular service tax entry which has to be distributed. Click OK to close the form. Note: You can select multiple service tax entries for distribution. After selecting service tax entries, the program will show the service tax amount which has to be distributed in the Applied Amount field on the footer level of the Service tax Distribution form.
Enter the following information on line level of Service tax Distribution form. First Line To Location: Distribution %: Distribution Amount: Red 50 3090.00
Second Line To Location: Distribution %: Distribution Amount: Loading on Services Account: Blue 50 3090.00 True
On the footer level of the Service Tax Distribution form, the program will show the following information: Total Distribution %: Total Distribution Amount: Total Applied Amount: 100.00 6180.00 6180.00

G/L Entry
The program creates the following G/L entry: Particulars Type Service Tax Recoverable A/C DR Red Location Service Tax Receivable CR (Distribution) A/C Silver Location Amount(Rs) 3090.00 3090.00
The program will transfer the distributed service tax amount from the Service Tax Receivable (Distribution) A/C to Service Tax Recoverable A/C and will store the location code in G/L entries. The program will also create service tax entry and service tax entry detail in the Red Location. Service Tax Entry
The program will display the following values in Sr. No. 5B. (I) (b) (iv) of ST-3 return for the month of April. Sr. No. 5B. (I) (b) (iv) As received from input service distributor Amount 3000
The program will display the following values in Sr. No. 5B. (II) (b) (iv) of ST-3 return for the month of April. Sr. No. 5B. (II) (b) (iv) As received from input service distributor Amount 90
Credit Received from inter unit transfer by a LTU.

In this case credit of Excise amount has been transferred from Blue location (which is LTU) to Red location.
Enter the following information in Transfer Order: Header Transfer-from Code: Transfer to Code: In-Transit Code: Structure: Line Blue Red Out. Log. Excise
Item No.: Description: Quantity: Transfer Price: Amount:
1000 Bicycle 10 1000 10000
Click functions menu button and click Calculate Structure Values to calculate Excise. Post the Transfer Order as Ship and Receive.

Navigation: Warehouse History Posted Documents Posted Transfer Shipments
G/L Entry
The program will Credit the Excise Payable account with Excise duty Rs. 1648.

Navigation: Warehouse History Posted Documents Posted Transfer Receipts
G/L Entry
The program will debit CENVAT Cr. Receivable A/C with Excise duty Rs. 1648 and the same amount will be displayed in ST-3 return.
Excise Entry
The program will display the following values in Sr. No. 5B. (I) (b) (v) of ST-3 return for the month of April. Sr. No. 5B. (I) (b) (v) From inter unit transfer by a LTU Amount 1600
The program will display the following values in Sr. No. 5B. (II) (b) (v) of ST-3 return for the month of April. Sr. No. 5B. (II) (b) (v) From inter unit transfer by a LTU Amount 48
Note: In case Central STC Applicable field in Company Information in checked then the program will display the above values in Sr. No. 5B (I) (b) (i)/(ii) and 5B (II) (b) (i)/(ii) instead of displaying it in Sr. No. 5B. (I) (b) (v) and 5B. (II) (b) (v).
Purchase Transaction for populating the amount of credit taken (for distribution) on input services
Purchase of Services in Silver location which is Input Service Distributor
In case of purchase of input services, fill the fields in the Purchase Order form as follows: On the Header: Buy-from Vendor No: Structure: Payment Method Code: Location Code: 20000 Service Tax Cash SILVER (On the Shipping tab) (Input Service Distributor field should be checked in location card)
On the Line: Type: No.: Description: Location Code: Quantity: Direct Unit Cost: Line Amount: Calculate Structure Press F9 to view the Service Tax amount. Post the Order. G/L Account 8470 Advertising & Media A/C SILVER 1 50000 50000

G/L Entry
The program creates the following entry: Particulars Advertising & Media A/C Service Tax Receivable Interim (Dist) A/C Vendor A/C Cash A/C Service Tax Recoverable (Dist.) A/C Service Tax Receivable Interim (Dist) A/C Vendor A/C Service Tax Entry Type Dr. Dr. Cr. Cr. Dr. Cr. Dr. Amount (Rs.) 50000 6180 56180 56180 6180 6180 56180
The program will display the following values in Sr. No. 6. (I) (b) of ST-3 return for the month of April. Sr. No. 6. (I) (b) Amount Credit taken (for distribution on input 6000 service The program will display the following values in Sr. No. 6. (II) (b) of ST-3 return for the month of April. Sr. No. 6. (II) (b) Amount Credit of education Cess and secondary 180 and higher education Cess taken (for distribution) on input service. Note 1: The program will display the values in the above Serial Number from Service Tax entry details which has been created through Purchase Orders/Invoices, Purchase Return Orders/Credit Memos, General Journal, Journal Voucher, Cash Payment Voucher, Payment Journal, Bank Payment Voucher and Service Tax Opening form.
Input Service Distribution Transaction for populating service tax amount distributed in ST-3 return.
In case services are purchased in Silver location and amount of service tax has to be distributed in Red location @ 50% and 50% to be loaded on services account.
Enter the following information on header level General tab of the Service tax Distribution form. No.: automatically) From Location: Service Tax Group Code: Distribution Basis: Posting Date: IPI000012 (Press F3, and number will appear
Silver Adv Previous Years Profit 30/04/07
Click the Function menu button and choose the Apply Entries menu item to select the service tax entry on the basis of From Location and Service Tax Group Code.
The program will open the Dist. Input Service Tax Credit form.
Place a check in the Dist. Input Service Tax Credit field for the particular service tax entry which has to be distributed. Click OK to close the form. Note: You can select multiple service tax entries for distribution. After selecting service tax entries, the program will show the service tax amount which has to be distributed in the Applied Amount field on the footer level of the Service tax Distribution form.
Enter the following information on line level of Service tax Distribution form. First Line To Location: Distribution %: Distribution Amount: Red 50 3090.00
Second Line To Location: Distribution %: Distribution Amount: Loading on Services A/C: Blue 50 3090.00 True
On the footer level of the Service Tax Distribution form, the program will show the following information: Total Distribution %: 100.00 Total Distribution Amount: 6180.00 Total Applied Amount: 6180.00 Post the Service tax Distribution form.

The program will create G/L Entries, Service Tax Entry in receiving locations and Service Tax Distribution entries.
G/L Entry
The program creates the following G/L entry: Particulars Type Service Tax Recoverable A/C DR Red Location Service Tax Receivable CR (Distribution) A/C Silver Location Amount(Rs) 3090.00 3090.00
The program will transfer the distributed service tax amount from the Service Tax Receivable (Distribution) A/C to Service Tax Recoverable A/C and will store the location code in G/L entries. Also the program will create the G/L entry for loading on the Services account with same original document number which has been used while posting the invoice.
The program creates the following G/L entry: Particulars Type Advertising & Media A/C DR Service Tax Receivable CR (Distribution) A/C Silver Location Amount(Rs) 3090 3090
The program will load the amount on the Service account by debiting it and credit the Service Tax Receivable (Distribution) A/C. No service tax entry will be created for this amount. The program will also create service tax entry and service tax entry detail in the Red Location.
Service Tax Entry
Service Tax Distribution Entries
The program will display the following values in Sr. No. 6. (I) (c) of ST-3 return for the month of April. Sr. No. 6. (I) (c) Credit distributed Amount 3000
The program will display the following values in Sr. No. 6. (I) (d) of ST-3 return for the month of April. Sr. No. 6. (I) (d) Credit not eligible for distribution Amount 3000
The program will display the following values in Sr. No. 6. (II) (c) of ST-3 return for the month of April. Sr. No. 6. (II) Amount Credit of education Cess and secondary 90 and higher education Cess distributed. The program will display the following values in Sr. No. 6. (II) (d) of ST-3 return for the month of April. Sr. No. 6. (II) (d) Amount Credit of education Cess and secondary 90 and higher education Cess not eligible for distribution.
Purchase Transaction for populating the amount of credit taken (for distribution) on input services
Purchase of services in the Silver location which is Input Service Distributor and the credit of service tax are not yet distributed.
In case of purchase of input services, fill the fields in the Purchase Order form as follows: On the Header: Buy-from Vendor No: Structure: Payment Method Code: Location Code: 20000 Service Tax Cash SILVER (On the Shipping tab) (Input Service Distributor field should be checked in location card)
On the Line: Type: No.: Description: Location Code: Quantity: Direct Unit Cost: Line Amount: Calculate Structure Press F9 to view the Service Tax amount. Post the Order. G/L Account 8470 Advertising & Media A/C SILVER 1 20000 20000

G/L Entry
The program creates the following entry: Particulars Advertising & Media A/C Service Tax Receivable Interim (Dist) A/C Vendor A/C Cash A/C Service Tax Recoverable (Dist.) A/C Service Tax Receivable Interim (Dist) A/C Vendor A/C Service Tax Entry Type Dr. Dr. Cr. Cr. Dr. Cr. Dr. Amount (Rs.) 20000 2472 22472 22472 2472 2472 22472
The program will display the following values in Sr. No. 6. (I) (b) of ST-3 return for the month of April. Sr. No. 6. (I) (b) Amount Credit taken (for distribution on input 2400 service The program will display the following values in Sr. No. 6. (II) (b) of ST-3 return for the month of April. Sr. No. 6. (II) (b) Amount Credit of education Cess and secondary 72 and higher education Cess taken (for distribution) on input service. Note 1: The program will display the values in the above Serial Number from Service Tax entry details which has been created through Purchase Orders/Invoices, Purchase Return Orders/Credit Memos, General Journal, Journal Voucher, Cash Payment Voucher, Payment Journal, Bank Payment Voucher and Service Tax Opening form.
Payment of GTA Service Tax Liability in Cash

Navigation: Financial Management General Ledger Periodic Activities Service Tax Payment
Enter the following information on the Header level of Service Tax Payment form. Service Tax Registration No.: Date Filter: GTA: Document No.: Posting Date: Click the Apply Entries menu button. The Pay Service Tax form opens. RED118910100578 01-04-2007 True PAYSER04 05-05-2007
The program populates the values in the following fields as: Service Tax Group Code: Description: Payment Liability: Payment Liability (eCess): Payment Liability (SHE Cess): TRANSPORT Transport of Goods by Road 6000.00 120.00 60.00
Enter the values in the following fields: Payment Amount: Payment Amount (eCess): Payment Amount (SHE Cess): Account Type: Account No.: Post the Pay Service Tax form. 6000.00 120.00 60.00 G/L Account 2910 (Cash)

G/L Entry
The program creates the following G/L entry: Particulars Type Service Tax Payable A/C DR Service Tax Recoverable A/C DR Service Tax receivable Interim A/C CR Cash A/C CR
Amount(Rs) 6180.00 6180.00 6180.00 6180.00
The program will display the following values in Sr. No. 4A. (I) (a) (i) of ST-3 return for the month of April. Sr. No. 4A. (I) (a) (i) Service Tax paid- In Cash Amount 6000
The program will display the following values in Sr. No. 4A. (I) (b) (i) of ST-3 return for the month of April. Sr. No. 4A. (I) (b) (i) Education Cess paid- In Cash Amount 120
The program will display the following values in Sr. No. 4A. (I) (c) (i) of ST-3 return for the month of April. Sr. No. 4A. (I) (c) (i) Amount Secondary and higher education Cess 60 paid- In Cash The program will display the following values in Sr. No. 5B. (I) (b) (iii) of ST-3 return for the month of April.
Sr. No. 5B. (I) (b) (iii) On inputs services received directly
Amount 6000
The program will display the following values in Sr. No. 5B. (II) (b) (iii) of ST-3 return for the month of April. Sr. No. 5B. (II) (b) (iii) On inputs services received directly Amount 180

On the Functions menu button click Update Challan Details menu item for the selected entry. Update ST Challan Details form will open.
Enter the following information for Service Tax Payment Doc. No. PAYSER04. Challan No.: Challan Date: Bank Name: Branch: CHNO.001 05-05-07 UTI BANK LTD. NEW DELHI
Click Ok button to update the details. The program will display the following values in Sr. No. 4A. (II) (a) of ST-3 return for the month of April. Sr. No. 4A. (II) (a) Challan Value CHNO.001
The program will display the following values in Sr. No. 4A. (II) (b) of ST-3 return for the month of April. Sr. No. 4A. (II) (b) Challan date Value 05-05-07
Utilizing Service Tax Credit and Excise Credit While Making Payment of Service Tax Liability in Cash.
Excise as Service Tax Credit Navigation: Financial Management General Ledger Periodic Activities Service Tax Excise as Service Tax Credit
Select the RG Register Type and location E.C.C. number for which you want to avail the Excise credit. Click OK.
The Avail RG 23 A Part II Credit form opens. In this form you can select the RG 23 A part II entry which you want to adjust in service tax liability. Click OK.
Service Tax Payment form Navigation: Financial Management General Ledger Periodic Activities Service Tax Payment
Enter the following information on the Header level of Service Tax Payment form. Service Tax Registration No.: Date Filter: Document No.: Posting Date: Location E.C.C. No: Click the Apply Entries menu button. The Pay Service Tax form opens. RED118910100578 01-04-2007 PAYSER004 05-05-2007 RXBVS7543890
The program populates the values in the following fields in Pay Service tax form as: Service Tax Group Code: Description: Payment Liability: Payment Liability (eCess): ADV Advertisement 12000.00 240.00
Payment Liability (SHE Cess): Service Tax Group Code: Description: Credit Available: Credit Available (eCess): Credit Available (SHE Cess):
120.00 TRANSPORT Transport of Goods by Road 6000.00 120.00 60.00
Excise as Service Tax Credit Available RG 23 A Part II: 16000.00 Credit Available RG 23 A Part II (eCess): 336.00 Credit Available RG 23 A Part II (SHECess):168.00 On the Line menu button click Excise CENVAT Claim menu item to utilize the credit of excise. Excise as Service Tax Credit form
Enter the values in the following fields: BED Amount: ECESS Amount: SHE CESS Amount: Close the form 4000.00 80.00 40.00
Enter the values in the following fields in Pay Service Tax form: Credit Availed: Credit Availed (eCess): Credit Availed (SHE Cess): Payment Amount: Payment Amount (eCess): Payment Amount (SHE Cess): Account type: Account No: Post the Pay Service Tax form. 3000.00 60.00 30.00 5000 100 50 G/L Account 2910 (Cash)

G/L Entry
The program creates the following G/L entry: Particulars Type CENVAT Cr. Receivable A/C CR Service Tax Payable A/C DR Service Tax Recoverable A/C CR Cash A/C CR RG 23 A Part II entry
Amount(Rs) 4120.00 12360.00 3090.00 5150.00
The program will populate the utilized amounts in BED debit, ECess Debit and SHE Cess Debit fields. The program will display the following values in Sr. No. 4A. (I) (a) (i) of ST-3 return for the month of April. Sr. No. 4A. (I) (a) (i) Service Tax Paid- in Cash Amount 5000
The program will display the following values in Sr. No. 4A. (I) (a) (ii) of ST-3 return for the month of April. Sr. No. 4A. (I) (a) (ii) Service Tax Paid- by CENVAT Credit Amount 7000
The program will display the following values in Sr. No. 4A. (I) (b) (i) of ST-3 return for the month of April. Sr. No. 4A. (I) (b) (i) Education Cess Paid- in Cash Amount 100
The program will display the following values in Sr. No. 4A. (I) (b) (ii) of ST-3 return for the month of April. Sr. No. 4A. (I) (b) (ii) Education Cess Paid- by CENVAT Credit Amount 140
The program will display the following values in Sr. No. 4A. (I) (c) (i) of ST-3 return for the month of April. Sr. No. 4A. (I) (c) (i) Amount Secondary and higher Education Cess 50 Paid- in Cash The program will display the following values in Sr. No. 4A. (I) (c) (ii) of ST-3 return for the month of April. Sr. No. 4A. (I) (c) (ii) Amount Secondary and higher Education Cess 70 Paid- by CENVAT Credit The program will display the following values in Sr. No. 5B. (I) (c) (i) of ST-3 return for the month of May. Sr. No. 5B. (I) (c) (i) For Payment of Service Tax Amount 7000
The program will display the following values in Sr. No. 5B. (II) (c) (i) of ST-3 return for the month of May. Sr. No. 5B. (I) (c) (i) Amount For Payment of education Cess and 210 secondary and higher education Cess on Service Tax

On the Functions menu button click Update Challan Details menu item for the selected entry. Update ST Challan Details form will open.
Utilizing Service Tax Credit and Excise Credit While Making Payment of Arrears of Service Tax Liability in Cash with Interest and Penalty
Service tax liability for April 2007 is now being paid on 10/05/07 which is after the due date (05/05/07). The program will identify the payment liability amount as Arrears.
Service Tax Payment form Navigation: Financial Management General Ledger Periodic Activities Service Tax Payment
Enter the following information on the Header level of Service Tax Payment form. Service Tax Registration No.: Date Filter: Document No.: Posting Date: Location E.C.C. No: Click the Apply Entries menu button. The Pay Service Tax form opens. RED118910100578 01-04-2007..30-04-07 PAYSER0004 10-05-2007 RXBVS7543890
Fields Description: Fields Pay. Liability Arrear Pay. Liability (eCess) Arrear Pay. Liability (SHE Cess) Arrear Description This field shows the amount of service tax which is identified as arrear on the basis of service tax payment due date. This field shows the amount of service tax eCess which is identified as arrear on the basis of service tax payment due date. This field shows the amount of service tax SHE Cess which is identified as arrear on the basis of service tax payment due date.
The program populates the values in the following fields in Pay Service tax form as: Service Tax Group Code: Description: Payment Liability: Payment Liability Arrear: Payment Liability (eCess): Payment Liability (eCess) Arrear: Payment Liability (SHE Cess): Payment Liability (SHE Cess) Arrear: Service Tax Group Code: Description: Credit Available: Credit Available (eCess): ADV Advertisement 6839.98 6839.98 136.80 136.80 68.40 68.40 TRANSPORT Transport of Goods by Road 3000.00 60.00
Credit Available (SHE Cess):
30.00
Excise as Service Tax Credit Available RG 23 A Part II: 12000.00 Credit Available RG 23 A Part II (eCess): 256.00 Credit Available RG 23 A Part II (SHECess):128.00 On the Line menu button click Excise CENVAT Claim menu item to utilize the credit of excise. Excise as Service Tax Credit form
Enter the values in the following fields: BED Amount: ECESS Amount: SHE CESS Amount: Close the form 1000.00 20.00 10.00
Fields Description: Fields Pay. Amount Arrear Pay. Amount (eCess) Arrear Pay. Amount (SHE Cess) Arrear Penalty Paid Penalty Account No. Section 73A Amount Section 73A Account No. Description Enter the amount of service tax arrear which has to be paid in cash. Enter the amount of service tax eCess arrear which has to be paid in cash. Enter the amount of service tax SHE Cess arrear which has to be paid in cash. Enter the amount of penalty which has to be paid in cash. Choose the Penalty account No. from lookup list in which penalty amount has to be debited. Enter the amount of Section 73A which has to be paid in cash. Choose the Section 73A account No. from lookup list in which Sec 73A amount has to be debited. Enter the amount of other Arrear (Service Tax) which has to be paid in cash. Enter the amount of other Arrear (eCess) which has to be paid in cash. Enter the amount of other Arrear (SHE Cess) which has to be paid in cash. Choose the Other Amt. Arrear account No. from lookup list in which Other Amt. Arrear (ST, eCess and SHE Cess) amounts has to be debited.
Other Amt. Arrear Other Amt. eCess Arrear Other Amt. SHE Cess Arrear Other Amt. Arrear Account No.
Enter the values in the following fields in Pay Service Tax form: Credit Availed: Credit Availed (eCess): Credit Availed (SHE Cess): Payment Amount: Pay. Amount Arrear: Payment Amount (eCess): Pay. Amount (eCess) Arrear: Payment Amount (SHE Cess): Pay. Amount (SHE Cess) Arrear: Account type: Account No: Interest Amount: Interest Account No.: Other Amount: Other Amount Account No.: Penalty Paid: Penalty Account No.: Section 73A Amount: Section 73A Account No.: Other Amt. Arrear: Other Amt. (eCess) Arrear: Other Amt. (SHE Cess) Arrear: Other Amt. Arrear Account No.: 3000.00 60.00 30.00 5189.98 2839.98 76.80 56.80 38.40 28.40 G/L Account 2910 (Cash) 1000.00 9280 (Interest on Service Tax) 200.00 9280 (Interest on Service Tax) 100.00 9280 (Interest on Service Tax) 50.00 9280 (Interest on Service Tax) 1000.00 20.00 10.00 5924 (Service Tax Payable II)
On the Line menu button click the Source Document menu item.
ST3 Source Document Details form will open.
Field Description: Fields Source Document No. Source Document Date Description Enter the Source Document No. for the Month/Qtr. Enter the Source Document Date.
Enter the following values in ST3 Source Document Details form: Source Document No.: Source Document Date: Close the form The program will display the following values in Sr. No. 4B. of ST-3 return. Sr. No. 4B S.No Month/Quarter Source Document No. Source Document Date Values 1 May ST004/06-07 10-05-07 ST004/06-07 10-05-07
On the Line menu button click the Payment Detail menu item.
ST Monthly Payment Dtl Buffer form will open. In this form you can enter the Month wise details of Interest amount, penalty amount, Section 73A amount, any other amount and other Amount (ST, eCess and SHE Cess) Arrear.
Fields Description: Fields Liability Date Interest Amount Description Enter the date for which you are paying liability. Enter the Interest amount which has to be paid. Amount in this field should be equal to Amount entered in Interest Amount field in pay service tax form. Enter the Penalty amount which has to be paid. Amount in this field should be equal to Amount entered in penalty Paid field in
Penalty Amount
pay service tax form. Section 73A Amount Enter the Sec 73A amount which has to be paid. Amount in this field should be equal to Amount entered in Section 73 A Amount field in pay service tax form. Enter the other amount which has to be paid. Amount in this field should be equal to Amount entered in other Amount field in pay service tax form. Enter the other arrear amount which has to be paid. Amount in this field should be equal to Amount entered in other arrear amount field in pay service tax form. Enter the other eCess arrear amount which has to be paid. Amount in this field should be equal to Amount entered in other eCESS arrear amount field in pay service tax form. Enter the other SHE Cess arrear amount which has to be paid. Amount in this field should be equal to Amount entered in other SHE Cess arrear amount field in pay service tax form.
Any other Amount
Other Arrear Amt.
Other eCess Arrear Amt.
Other SHE Cess Arrear Amt.
Enter the following values in ST Monthly Payment Dtl Buffer form: Liability Date: Interest Amount: Penalty Amount: Section 73 A Amount: Any Other Amount: Other Arrear Amt.: Other eCess Arrear Amt.: Other SHE Cess Arrear Amt.: Close the form. Post the Pay Service Tax form. 30-04-07 1000.00 100.00 50.00 200.00 1000.00 20.00 10.00

G/L Entry
The program creates the following G/L entry: Particulars CENVAT Cr. Receivable A/C Interest on Service Tax A/C Service Tax Payable II A/C Service Tax Payable I A/C Service Tax Recoverable A/C Cash A/C RG 23 A Part II entry Type CR DR DR DR CR CR Amount(Rs) 1030.00 1350.00 1030.00 7045.18 3090.00 5305.18
The program will populate the utilized amounts in BED debit, ECess Debit and SHE Cess Debit fields.
The program will display the following values in Sr. No. 4A. (I) (d) (i) of ST-3 return for the month of April. Sr. No. 4A. (I) (d) (i) Arrears of revenue paid in cash Amount 3839.98
The program will display the following values in Sr. No. 4A. (I) (d) (ii) of ST-3 return for the month of April. Sr. No. 4A. (I) (d) (ii) Arrears of revenue paid by credit Amount 4000.00
The program will display the following values in Sr. No. 4A. (I) (d) (iii) of ST-3 return for the month of April. Sr. No. 4A. (I) (d) (iii) Arrears of education Cess paid in cash Amount 76.80
The program will display the following values in Sr. No. 4A. (I) (d) (iv) of ST-3 return for the month of April. Sr. No. 4A. (I) (d) (iv) Arrears of education Cess paid by credit Amount 80.00
The program will display the following values in Sr. No. 4A. (I) (d) (v) of ST-3 return for the month of April. Sr. No. 4A. (I) (d) (v) Amount Arrears of Sec and higher education Cess 38.40 paid in cash The program will display the following values in Sr. No. 4A. (I) (d) (vi) of ST-3 return for the month of April. Sr. No. 4A. (I) (d) (vi) Amount Arrears of Sec and higher education Cess 40.00 paid by credit The program will display the following values in Sr. No. 4A. (I) (d) (vii) of ST-3 return for the month of April. Sr. No. 4A. (I) (d) (vii) Interest paid Amount 1000.00
The program will display the following values in Sr. No. 4A. (I) (d) (viii) of ST-3 return for the month of April. Sr. No. 4A. (I) (d) (viii) Penalty paid Amount 100.00
The program will display the following values in Sr. No. 4A. (I) (d) (xi) of ST-3 return for the month of April. Sr. No. 4A. (I) (d) (xi) Section 73 A Amount paid Amount 50.00
The program will display the following values in Sr. No. 4A. (I) (d) (x) of ST-3 return for the month of April. Sr. No. 4A. (I) (d) (x) Any other amount Amount 200.00
The program will display the following values in Sr. No. 5B. (I) (c) (i) of ST-3 return for the month of May. Sr. No. 5B. (I) (c) (i) For Payment of Service Tax Amount 4000
The program will display the following values in Sr. No. 5B. (II) (c) (i) of ST-3 return for the month of May. Sr. No. 5B. (I) (c) (i) Amount For Payment of education Cess and 120 secondary and higher education Cess on Service Tax

On the Functions menu button click Update Challan Details menu item for the selected entry.
Update ST Challan Details form will open.
Utilizing Service Tax Credit and Excise Credit while Making Payment of Excise Duty
There should be some liability of Excise Duty which has to be settled with Service Tax Credit and Excise Credit.
Navigation: Financial Management General Ledger Periodic Activities Service Tax Service Tax as Excise Credit.
Select the service tax registration number and location E.C.C. number for which you want to avail the service tax credit. Click OK.
The Avail Service Tax Credit form opens. In this form you can select the service tax entry which you want to adjust in excise duty liability. Click OK.
Payment of Excise Duty Navigation: Financial Management General Ledger General Journal
Enter the following Information on the General Journal line to pay excise duty. Posting Date : Document Type: Document No.: Account Type: Account No.: Description: Service Tax Registration No.: E.C.C. No.: 30-04-07 Payment G00069 G/L Account 2994 Excise Payable Account RED118910100578 RXBVS7543890
On the Functions menu button, select the Payments menu item, and then click Excise. The Pay Excise window opens.
Click Apply Entries.
The program opens the Excise CENVAT Claim form. In this form values of credit will be populated under the RG 23 A and RG 23 C headings as: RG 23 A BED Amount: eCESS Amount: SHE CESS Amount: RG 23 C BED Amount: eCESS Amount: SHE CESS Amount: 31680.00 634.00 317.00 12000.00 240.00 120.00
The program opens the Excise CENVAT Claim form. In this form values will be populated under the Excise Payable and Service Tax headings as: Excise Payable BED Amount: eCESS Amount: SHE CESS Amount: Service Tax Service Tax as Excise Credit: eCess on Service Tax as Excise Credit: SHE Cess on Service Tax as Excise Credit: 5400.00 108.00 54.00 16000.00 320.00 160.00
Enter the values of service tax credit which has to be utilized for Excise Payable: BED Amount: eCess Amount: SHE Cess Amount: 5400.00 108.00 54.00
Click the Detail menu button to enter the values. A new form opens, where you can take the credit or settle your excise payable according to the claim setoff list defined in the Excise Setup. The program will show you the total liability according to the duty on each tab. The program will also show you the credit available for each component on the top line.
In the above forms, you can see that for each duty the program is displaying liability and remaining liability. When you settle amount of duty with credit available then the remaining liability will be reduced to zero.
Excise liability has been settled with RG 23 A and RG 23 C in the above screen shots. RG 23 A tab: BED Amount Liability with RG 23 A BED Amount: ECESS Amount Liability with RG 23 A ECESS Amount: SHE ECESS Amount Liability with RG 23 A SHE ECESS Amount: RG 23 C tab: BED Amount Liability with RG 23 C BED Amount: ECESS Amount Liability with RG 23 C ECESS Amount: SHE ECESS Amount Liability with RG 23 C SHE ECESS Amount: 5300.00 106.00 53.00 5300.00 106.00 53.00
After entering amounts on each tab, close the form.
The program will populate the value in Amount field of the General Journal. Post the General Journal

G/L Entry
The program creates the following G/L entry: Particulars Type Excise Payable A/C DR CENVAT Cr. Receivable A/C CR CENVAT Cr. Receivable A/C CR Service Tax Recoverable A/C CR RG 23 A Part II
Amount(Rs) 16480.00 5459.00 5459.00 5562.00
The program will populate the utilized amounts in BED debit, ECess Debit and SHE Cess Debit fields.
RG 23 C Part II
The program will populate the utilized amounts in BED debit, ECess Debit and SHE Cess Debit fields. Note: You can utilize the credits of Excise and Service Tax while using Direct Debit to PLA/RG functionality through Sales Order/Invoice. The program will display the following values in Sr. No. 5B. (I) (c) (iii) of ST-3 return for the month of April. Sr. No. 5B. (I) (c) (iii) For payment of excise or any other duty Amount 16000
The program will display the following values in Sr. No. 5B. (II) (c) (ii) of ST-3 return for the month of April. Sr. No. 5B. (II) (c) (ii) Amount For payment of education Cess and 480 secondary and higher education Cess on goods
ST3 Removed as such/LTU Dtl.

Navigation: Financial Management General Ledger Periodic Activities Service Tax ST3 Removed as such/LTU Dtl.
In this form you can enter the values of Credit utilized towards clearance of Input goods and capital goods removed as such and towards inter unit transfer of LTU.
Fields Description: Fields Service Tax Registration No. Date For Removed as such Description Choose the service tax registration number from lookup list. Enter the date of utilization. Enter the amount of Excise components excluding eCess and SHE Cess amounts which has been utilized for Removed as Such. Enter the amount of Excise eCess which has been utilized for Removed as Such. Enter the amount of Excise SHE Cess which has been utilized for Removed as Such. Enter the amount of Excise components excluding eCess and SHE Cess amounts which have been utilized towards inter unit transfer of LTU.
For Removed as such (eCess) For Removed as such (SHE Cess)
From ITU for LTU
From ITU for LTU (eCess)
Enter the amount of Excise eCess which have been utilized towards inter unit transfer of LTU. Enter the amount of Excise SHE Cess which have been utilized towards inter unit transfer of LTU.
From ITU for LTU (SHE Cess)
Enter the following information in ST3 Removed as such/LTU Dtl. Service Tax Registration No.: Date: For Removed as Such: For Removed as Such (eCess): For Removed as Such (SHE Cess): From ITU for LTU: From ITU for LTU (eCess): From ITU for LTU (SHE Cess): RED118910100578 30-04-07 2000 40 20 1000 20 10
After entering the values in the above form program will change the values in Sr. No. 5B (I) (iii) and 5B (II) (ii) of ST-3. The program will display the following values in Sr. No. 5B. (I) (c) (iii) of ST-3 return for the month of April. Sr. No. 5B. (I) (c) (iii) For payment of excise or any other duty Amount 13000
The program will display the following values in Sr. No. 5B. (I) (c) (iv) of ST-3 return for the month of April. Sr. No. 5B. (I) (c) (iv) Amount Towards clearance of input goods and 2000 capital goods removed as such The program will display the following values in Sr. No. 5B. (I) (c) (v) of ST-3 return for the month of April. Sr. No. 5B. (I) (c) (v) Towards inter unit transfer of LTU Amount 1000
The program will display the following values in Sr. No. 5B. (II) (c) (ii) of ST-3 return for the month of April. Sr. No. 5B. (II) (c) (ii) Amount For payment of education Cess and 390 secondary and higher education Cess on goods
The program will display the following values in Sr. No. 5B. (II) (c) (iii) of ST-3 return for the month of April. Sr. No. 5B. (II) (c) (iii) Amount Towards payment of education Cess and 60 secondary and higher education Cess on clearance of input goods and capital goods removed as such The program will display the following values in Sr. No. 5B. (II) (c) (iv) of ST-3 return for the month of April. Sr. No. 5B. (II) (c) (iv) Towards inter unit transfer of LTU Amount 30
Note 1: InST3 Removed as such/LTU Dtl. Form enter the correct amounts of Credit which has been utilized for payment of excise duty. Note 2: The program will not allow the user to enter the values in From ITU for LTU, From ITU for LTU (eCess) and From ITU for LTU (SHE Cess) fields in ST3 Removed as such/LTU Dtl. Form if Central STC Applicable is checked in Company Information.
Report
Form ST-3
Navigation: Financial Management General Ledger Reports Service Tax Reporting Form ST-3
On the Options tab Fields Service Tax Reg. No. Description Choose the Service Tax Registration No. from lookup list for which you want to generate the report. Choose the option from drop down button for which period you want to generate the report. The options available are blank, Apr-Sept, Oct-March. Enter the year for which you want to generate the report. For Example: Value entered in this field is 2007, and
Half Yearly Period
Year
Fields
Description then the program will display it in the report against Financial Year field 2007-08. Enter the Place where ST-3 has to be submitted and the program will display the same under Sr. No. 7 (Self Assessment memorandum) against Place field. Enter the Date on which ST-3 has to be submitted and the program will display the same under Sr. No. 7 (Self Assessment memorandum) against Date field.
Place Submitted
Date Submitted
Whether providing any exempted or non Place a check mark in this field if you are taxable service (Y/N) providing any exempted or non taxable service. In Sr. No. 5A (a) and (c) program will display the value as Y on the basis of check mark in this field. Note: This field is not applicable for service receiver and input service distributor. Whether manufacturing any exempted Place a check mark in this field if you are goods (Y/N) manufacturing any exempted goods. In Sr. No. 5A (b) and (c) program will display the value as Y on the basis of check mark in this field. Note: This field is not applicable for service receiver and input service distributor. Note: While generating ST-3 report for service provider or service receiver Input Service Distributor field should be unchecked in Location card or Company Information master, and Input Service Distributor field should be checked in location card or company information master if the report is being generated for input service distributor for the service tax registration number chosen in report request form.
ST-3 return for Service Provider and Service Receiver In case of ST Payment Period is Monthly. Generate Form ST-3 for Service Tax Registration No. RED118910100578 and for the period April to September.
Fill in the following fields to generate the report: Service Tax Reg. No.: RED118910100578 Half Yearly Period: Apr-Sept Year: 2007 Place Submitted: New Delhi Date Submitted: 25-10-07 Whether providing any exempted or non taxable service (Y/N): Place a check mark Whether manufacturing any exempted goods (Y/N): Place a check mark To print the report, click Print. To see the report on screen, click Preview. If you want to print it later, click Cancel.
The program will generate the ST-3 report with all relevant information.
ST-3 return for Input Service Distributor In case of ST Payment Period is Monthly. Generate Form ST-3 for Service Tax Registration No. SLV118910100578 and for the period April to September.
Fill in the following fields to generate the report: Service Tax Reg. No.: SLV118910100578 Half Yearly Period: Apr-Sept Year: 2007 Place Submitted: New Delhi Date Submitted: 25-10-07 Whether providing any exempted or non taxable service (Y/N): Uncheck Whether manufacturing any exempted goods (Y/N): Uncheck To print the report, click Print. To see the report on screen, click Preview. If you want to print it later, click Cancel.
The program will generate the ST-3 report with all relevant information.
Filling of ST-3
Navigation: Financial Management General Ledger Setup Service Tax Service Tax Return period
Enter the filling date on which you have submitted the ST-3 return to government authorities after generating ST-3. The program will not consider any payment liability paid after the actual return filed date in the same return period. Example:
In ST-3 return for registration no.RED118910100578, the unpaid liability amount is Rs. 6180 which is shown in Sr. No. 4C of ST-3 for the period April-Sept 2007-08. After filling of the ST-3 return the unpaid liability of Rs. 6180 has been paid, the same amount will be shown in Sr. No. 4A of ST-3 for the period Oct-March 2007-08.
Fields Description of ST-3 report

Sr. No. Fields Financial Year Description This field gets the value from Year field available in options tab in the Report Request form. For Example: Value entered in Year field is 2007, and then the program will display it in the report against Financial Year field
2007-08. For the period (Please tick The program will place a the appropriate period) check mark on the basis of the period defined in Half Yearly Period field in request form. If Half Yearly Period is chosen as Apr-Sept, then AprilSeptember field in the report will be ticked and if Half Yearly Period is chosen as Oct-March, then OctoberMarch field in the report will be ticked. 1A. Has the Assess Opted to This field gets the checkmark operate as large taxpayer if the Large Tax Payer field in company information master is checked. If reply to column1A is yes This field gets the value on ,name of large taxpayer unit the basis of value selected in (opted for (name of city) Large Tax Payer City field in Company Information Master. Name of the Assessee This field populates the same Name which has been entered in the Name field in Company Information master. This field populates the same number which has been chosen in the Service Tax Reg. No. field in the Report Request form while generating the report. This field populates the same code number which has been entered in the Premises code No. field in Service Tax Registration Nos. setup. The program will place a checkmark on the basis of constitution chosen in Company Status field in Company Information Master. Categories in the report are:
1B.
2A.
2B.
STC No
2C.
Premises code No
2D.
Constitution of Assessee
Individual/Proprietary; Partnership; Registered Public Ltd. Company; Registered Private Ltd. Company; Registered Trust; Society/Co-op Society; Others.
Fields Description of Sr. No. 3 Computation of Service Tax section in the report: Note: The program will populate the values in this section for Service Provider and Service receiver and will not populate any value for input service distributor. Also program will repeat this section for every category (Service Tax Group) of taxable service on which service tax is payable. Sr. No. 3A1. Fields Name of Taxable service Description This field shows description of service group code. the tax
3A2.
Assessee is liable to pay The program will place a service tax on this taxable checkmark on the basis of service as category chosen in Liable to pay Service Tax as field in ST Groups/ST Registration No. form. If Liable to pay Service Tax as is chosen as Service Provider, then a Service Provider field in the report will be ticked and if Liable to pay Service Tax as is chosen as Service Receiver, then a Service receiver liable to make payment of service tax field in the report will be ticked. Sub clause No of clause This field populates the same (105)of section 65 value which has been entered in the Sub-Clause No. field in Service Tax Groups setup. Has the assessee availed This field will show the value benefit of any exemption as Y on the basis of value notification(Y/N) entered in Notification No. field with Type as Exemption in Service Notification Nos. form. If there is no value in Notification No. field then
3B.
3C1.
Sr. No. 3C2.
Fields
Description value will be N in this filed.
If reply to columnC1 is yes This field populates the same ,please furnish notification notification number which has Nos been entered in the Notification No. field in Service Notification Nos. form. If 3C1 field is N then this field will be blank. If abatement is claimed as per notification No 1/2006,please furnish serial number in the notification under which such abatement is claimed This field will populate the same Sr. No. which has been entered in Notification Sr. No. field with Type as Abatement in Service Notification Nos. form.
3D.
3E1. 3E2. 3F (I)
Whether provisionally This field will show the value assessed(Y/N) as N. Prov. assessment no(if any) Service Tax payable order This field will be blank in case Sr. No. 3E1 is N. The program will furnish the details under this section on the basis of Service tax payment period. If the period is monthly then the details will be furnished month wise, for example: Apr, May, June, July, Aug, and Sept. If the period is Quarterly then the details will be furnished quarter wise means: Apr-Jun, Jul-Sep.
3F (I) (a)
Gross amount received/(paid#) in money (i) against service provided This field shows the gross amount received from customer on which service tax has been calculated and service tax is exempt/not payable. Amount paid to Vendor on which service tax has been calculated in case of GTA.
Sr. No.
Fields
Description
(ii) in advance for service to This field shows the gross be provided amount of advance received from customer on which service tax has been calculated and service tax is exempt/not payable. 3F (I) (b) Money equivalent of considerations received/(paid#) in a form other than money Value on which service tax is exempt/not payable (i) Amount received against export service This field is not been handled by the program.
3F (I)
This field shows the amount received from customer against export services on which service tax is not payable.
(ii) Amount received towards This field shows the amount exempted service (other received from customer than export of service) against exempted services on which service tax is exempt. (iii) Amount received This field shows the amount as/(paid to) pure agent received from customer as pure agent on which service tax is not payable. 3F (I) (d) Abatement amount claimed This field shows the amount of Abatement which has been calculated by the program on the basis of abatement % entered in the Service Tax Setup.
3F (I) (e)
Taxable value=(a+b) minus This field shows the taxable (c+d) value after subtracting the sum of Sr. No. 3F (I) & (d) from the sum of Sr. No. 3F (I) (a) & (b). Service tax rate wise breakup of taxable value=(e) (i) Value on which service This field shows the taxable tax is payable@5% value on which service tax has been calculated @ 5%.
3F (I) (f)
Sr. No.
Fields Description (ii) Value on which service This field shows the taxable tax is payable@8% value on which service tax has been calculated @ 8%. (iii) Value on which service This field shows the taxable tax is payable@10% value on which service tax has been calculated @ 10%. (iv) Value on which service This field shows the taxable tax is payable@12% value on which service tax has been calculated @ 12%. (v) Other rate, if any, (please This field shows the taxable specify) value on which service tax has been calculated with some other rate.
3F (I) (g)
Service Tax Payable
This field shows the sum of the amounts of service tax payable which has been calculated on taxable value. (5% of f(i) + 8% of f(ii) + 10% of f(iii) + 12% of f(iv) + X% of f(v)). This field shows the amount of Education Cess payable which has been calculated on Service Tax Payable. (@ 2% of Service Tax).
3F (I) (h)
Education Cess payable
3F (I) (i)
Secondary and higher This field shows the amount education Cess payable of Secondary and higher education Cess payable which has been calculated on Service Tax Payable. (@ 1% of Service Tax). Taxable amount charged The program will furnish the details under this section on the basis of Service tax payment period. If the period is monthly then the details will be furnished month wise for example: Apr, May, June, July, Aug, and Sept. If the period is Quarterly then the details will be furnished quarter wise means; Apr-Jun,
3F (II)
Sr. No. 3F (II) (j)
Fields Gross amount for which bills/invoices/challans are issued relating to service provided/to be provided (including export of service and exempted service)
Description Jul-Sep. This field shows the gross amount received / not received from customer on which service tax has been calculated and service tax is exempt/not payable. Amount paid/not paid to Vendor on which service tax has been calculated in case of GTA. This field is not handled by the program. This field shows the amount received/not received from customer against export services on which service tax is not payable. This field shows the amount received/not received from customer against exempted services on which service tax is exempt. This field shows the amount received/not received from customer as pure agent on which service tax is not payable. as This field shows the amount of Abatement which has been calculated by the program on the basis of abatement % entered in the Service Tax Setup.
3F (II) (k)
3F (II) (l)
Money equivalent of other consideration charged if any in a form of other than money Amount charged against export service provided/to be provided
3F (II) (m)
Amount charged for exempted services provided/to be provided(other than export of service) Amount charged as pure Agent
3F (II) (n)
3F (II) (o)
Amount abatement
claimed
3F (II) (p)
Net taxable amount This field shows the Net charged= taxable value after subtracting (J+k) minus (l+m+n+o) the sum of Sr. No. 3F (II) (j) & (k) from the sum of Sr. No. 3F (II) (l), (m), (n) & (o).
Fields Description of Sr. No. 4A Service Tax, education Cess and other amounts paid section in the report: Note: The program will populate the values in this section for the person who is liable to pay service tax and will not populate any value for input service distributor.
Sr. No. 4A (I)
Fields Description Service Tax, education Cess The program will furnish the details under this section on and other amounts paid the basis of Service tax payment period. If the period is monthly then the details will be furnished month wise for example: Apr, May, June, July, Aug, and Sept. If the period is Quarterly then the details will be furnished quarter wise means: Apr-Jun, Jul-Sep.
4A (I) (a)
Service Tax paid (i) in cash
This field shows the amount of service tax which has been paid to the government authorities in Cash/Cheque through Service Tax payment journal. This field shows the amount of service tax credit and Excise credit which has been utilized against service tax liability through Service Tax payment journal. This field is not been handled by the program. This field is not been handled by the program.
(ii) by CENVAT credit
4A (I) (b)
(iii) by adjustment of excess amount paid earlier and adjusted in this period under rule 6(3) of ST Rules (iv) by adjustment of excess amount paid earlier and adjusted in this period under rule 6(4A) of ST Rules Education Cess paid (i) in cash
This field shows the amount of Education Cess which has been paid to the government authorities in Cash/Cheque
Sr. No.
Fields
Description through Service Tax payment journal. This field shows the amount of service tax education Cess credit and Excise education Cess credit which has been utilized against service tax education Cess liability through Service Tax payment journal. This field is not handled by the program. This field is not handled by the program.
4A (I) (c)
(iii) by adjustment of excess amount paid earlier and adjusted in this period under rule 6(3) of ST Rules (iv) by adjustment of excess amount paid earlier and adjusted in this period under rule 6(4A) of ST Rules Secondary and higher education Cess paid (i) in cash
This field shows the amount of Secondary and higher Education Cess which has been paid to the government authorities in Cash/Cheque through Service Tax payment journal. This field shows the amount of service tax secondary and higher education Cess credit and Excise secondary and higher education Cess credit which has been utilized against service tax secondary and higher education Cess liability through Service Tax payment journal. This field is not handled by the program. This field is not handled by the program.
(iii) by adjustment of excess amount paid earlier and adjusted in this period under rule 6(3) of ST Rules (iv) by adjustment of excess amount paid earlier and adjusted in this period under rule 6(4A) of ST Rules
Sr. No. 4A (I) (d)
Fields Description Other amounts paid (i) Arrears of revenue paid in This field shows the amount cash of arrears of service tax liability which has been paid to the government authorities in Cash/Cheque through Service Tax payment journal. (ii) Arrears of revenue paid by This field shows the amount credit of service tax credit and Excise credit which has been utilized against liability of service tax arrears through Service Tax payment journal. (iii) Arrears of education Cess This field shows the amount paid in cash of arrears of service tax eCess liability which has been paid to the government authorities in Cash/Cheque through Service Tax payment journal. (iv) Arrears of education Cess This field shows the amount paid by credit of service tax eCess credit and Excise eCess credit which has been utilized against liability of service tax eCess arrears through Service Tax payment journal. (v) Arrears of Sec & higher This field shows the amount education Cess paid in cash of arrears of service tax SHE Cess liability which has been paid to the government authorities in Cash/Cheque through Service Tax payment journal. (vi) Arrears of Sec & higher This field shows the amount education Cess paid by credit of service tax SHE Cess credit and Excise SHE Cess credit which has been utilized against liability of service tax SHE Cess arrears through Service Tax payment journal. (vii) Interest paid This field shows the amount of Interest which has been
Sr. No.
Fields
Description paid to the government authorities in Cash/Cheque through Service Tax payment journal. This field shows the amount of Penalty which has been paid to the government authorities in Cash/Cheque through Service Tax payment journal. This field shows the amount which has been paid under sec. 73A to the government authorities in Cash/Cheque through Service Tax payment journal.
(viii) Penalty paid
(xi) Section 73A amount paid
(x) Any other amount (please This field shows the amount specify) which has been paid as other amount to the government authorities in Cash/Cheque through Service Tax payment journal. 4A (II) Details of Challan The program will furnish the details under this section on the basis of Service tax payment period. If the period is monthly then the details will be furnished month wise; for example: Apr, May, June, July, Aug, and Sept. If the period is Quarterly then the details will be furnished quarter wise, means Apr-Jun, Jul-Sep. This field shows the challan nos that have been entered through update Challan Details form. This field shows the challan dates that have been entered through update Challan Details form.
4A (II) (a)
Challan Nos.
4A (II) (b)
Challans Date
Fields Description of Sr. No. 4B Source documents details for entries at column 4A(I)(a) (iii), 4A(I)(a) (iv), 4A(I)(b) (iii), 4A(I)(b) (iv), 4A(I)(c) (iii), 4A(I)(d) (i) to (vii) section in the report: Fields Sr.No. Month/Quarter Description This field shows the serial number which is auto generated by the program. This field shows the Month or Quarter for which you have entered the Source document number and date in ST3 source document details form available in Service tax payment form. This filed shows the same value which has been entered in Source Document No. field in ST3 source document details form. This filed shows the same value which has been entered in Source Document Date field in ST3 source document details form.
Source document No./Period
Source documents date
Fields Description of Sr. No. 4C in the report: Fields Details of amount of service tax payable but not paid as on the last day of the period for which return is filed Description This field shows the total amount of Service Tax, eCess and SHE Cess liability that have been unpaid on the last day of the period for which return is filed.
Fields Description of Sr. No. 5 Details of input stage CENVAT credit section in the report: Note: The program will populate the values in this section for Service Provider and will not populate any value for Service receiver and input service distributor. Sr. No. 5A Fields Description Whether the assessee providing exempted/non taxable service or exempted goods Whether providing any This field will shows the value exempted or non taxable as Y on the basis of check
5A (a)
service (Y/N)
mark in Whether providing any exempted or non taxable service (Y/N) field available in the Report Request form while generating the report. This field is applicable for only service provider.
5A (b)
Whether manufacturing any This field will shows the value exempted goods (Y/N) as Y on the basis of check mark in Whether manufacturing any exempted goods (Y/N) field available in the Report Request form while generating the report. This field is applicable for only service provider. If any one of the above is yes, whether maintaining separate account for receipt or consumption of input service and input goods (refer to rule 6(2) of CENVAT credit Rule, 2004) This field shows the value as Y if any one of the field from (a) or (b) is Y. This field is applicable for only service provider.
5A
Fields Description of Sr. No. 5B CENVAT Credit taken and utilized section in the report: Sr. No. 5B (I) Fields Description CENVAT Credit of Service The program will furnish the tax and Central Excise details under this section on the basis of Service tax duty payment period. If the period is monthly then the details will be furnished month wise, for example: Apr, May, June, July, Aug, and Sept. If the period is Quarterly then the details will be furnished quarter wise means: Apr-Jun, Jul-Sep. Opening balance This field shows the opening balance of CENVAT credit of service tax and Central excise duty as on date. This field shows the amount
5B (a)
5B (b)
Credit taken (i) On inputs
of CENVAT credit of Central Excise duty on purchase/transfer receipts of inputs. (ii) On capital goods This field shows the amount of CENVAT credit of Central Excise duty on purchase/transfer receipts of capital goods. services This field shows the amount of CENVAT credit of Service tax on input services received.
(iii) On input received directly
(iv) As received from input This field shows the amount service distributor of CENVAT credit of service tax which has been received from input service distributor. (v) from inter unit transfer by This field shows the amount a LTU of CENVAT credit of Excise duty which has been received from inter unit transfer by LTU. If Central STC Applicable field is true in company information master, then the program will show the amount of CENVAT credit of Excise duty which has been received from inter unit transfer by LTU in Sr. No. 5B (I) (b) (i) or (ii) instead of showing it in this field. Total take=(i+ii+iii+iv+v) 5B (c) Credit This field shows the sum of Sr. No. 5B (I) (b) (i), (ii), (iii), (iv) and (v).
Credit utilized (i) For payment of service This field shows the amount tax of CENVAT credit of Service tax and CENVAT credit of Excise duty which has been utilized against service tax liability. (ii) For payment of This field is not been handled education Cess on taxable by the program. service
(iii) For payment of excise or This field shows the amount any other duty of CENVAT credit of Service tax and CENVAT credit of Excise duty which has been utilized against Excise duty liability. Also this field will show the amount of excise duty which has been debited in the RG registers after posting Purchase Credit Memo and Return order. Amount in this field will be reduced with respect to the amounts available in field Sr. No. 5 B (I) (iv) and (v). (iv) Towards clearance of This field shows the same input goods and capital amount which has been goods removed as such entered in ST3 Removed as Such/LTU Dtl. form in For Remover as such field. (v) Towards transfer of LTU inter unit This field shows the same amount which has been entered in ST3 Removed as Such/LTU Dtl Form in From ITU for LTU field. If the Central STC Applicable field is checked in company information master then this field will be blank.
Total Credit (i+ii+iii+iv+v) 5B (I) (d)
utilized= This field shows the sum of Sr. No. 5B (I) (c) (i), (ii), (iii), (iv) and (v).
Closing Balance of This field shows the closing CENVAT Credit= (a+b-c) balance after subtracting Sr. No. 5B (I) from the sum of Sr. No. 5b (I) (a) and (b). CENVAT credit of The program will furnish the Education Cess and details under this section on Secondary and higher the basis of Service tax payment period. If the period Education Cess is monthly then the details will be furnished month wise for example: Apr, May, June, July, Aug, and Sept. If the
5B (II)
period is Quarterly then the details will be furnished quarter wise means; Apr-Jun, Jul-Sep. 5B (II) (a) Opening balance This field shows the opening balance of CENVAT credit of service tax eCess and SHE Cess and Central excise duty eCess and SHE Cess as on date.
5B (II) (b)
Credit of education Cess and secondary and higher education Cess taken (i) On inputs This field shows the amount of CENVAT credit of Central Excise duty ECESS and SHE CESS on purchase/transfer receipts of inputs. (ii) on capital goods This field shows the amount of CENVAT credit of Central Excise duty ECESS and SHE CESS on purchase/transfer receipts of capital goods. services This field shows the amount of CENVAT credit of Service tax ECESS and SHE CESS on input services received.
(iii) On inputs received directly
(iv) As received from input This field shows the amount service distributor of CENVAT credit of service tax ECESS and SHE CESS which has been received from input service distributor. (v) From inter unit transfer This field shows the amount by a LTU of CENVAT credit of Excise duty ECESS and SHE CESS which has been received from inter unit transfer by LTU. If Central STC Applicable field is true in company information master, then the program will show the amount of CENVAT credit of Excise duty ECESS and SHE CESS which has been received from inter unit
transfer by LTU in Sr. No. 5B (II) (b) (i) or (ii) instead of showing it in this field. Total credit of education Cess and secondary and higher education Cess taken= (i+ii+iii+iv+v) Credit of education Cess and secondary and higher education Cess utilized (i) For payment of education Cess and secondary and higher education Cess on services This field shows the sum of Sr. No. 5B (II) (b) (i), (ii), (iii), (iv) and (v).
5B (II)
This field shows the amount of CENVAT credit of Service tax ECESS and SHE CESS and CENVAT credit of Excise duty ECESS and SHE CESS which has been utilized against service tax ECESS and SHE CESS liability. This field shows the amount of CENVAT credit of Service tax ECESS and SHE CESS and CENVAT credit of Excise duty ECESS and SHE CESS which has been utilized against Excise duty ECESS and SHE CESS liability. Also this field will show the amount of excise duty ECESS and SHE CESS which has been debited in the RG registers after posting Purchase Credit Memo and Return order. Amount in this field will be reduced with respect to the amounts available in field Sr. No. 5 B (II) (iii) and (iv). This field shows the same amount which has been entered in ST3 Removed as Such/LTU Dtl. Form in for removed as such (ECESS) and for removed as such (SHE CESS) fields.
(ii) For payment of education Cess and secondary and higher education Cess on goods
(iii) Towards payment of education Cess and secondary and higher education Cess on clearance of input goods and capital goods removed as such (iv) Towards transfer of LTU inter
unit This field shows the same amount which has been
entered in ST3 Removed as Such/LTU Dtl Form in From ITU for LTU (ECESS) and from ITU for LTU (SHE CESS) fields. If the Central STC Applicable field is checked in company information master then this field will be blank. Total credit of education Cess and secondary and higher education Cess utilized= (i+ii+iii+iv) Closing Balance of Education Cess and secondary and higher education Cess= (a+b-c) This field shows the sum of Sr. No. 5B (II) (c) (i), (ii), (iii) and (iv). This field shows the closing balance after subtracting Sr. No. 5B (II) from the sum of Sr. No. 5b (II) (a) and (b).
5B (II) (d)
Fields Description of Sr. No. 6 Credit details for input service distributor section in the report: Note: The program will populate the values in this section only for Input Service Distributor. Sr. No. 6 (I) Fields Description CENVAT credit of service The program will furnish the tax and Central Excise details under this section on the basis of Service tax duty payment period. If the period is monthly then the details will be furnished month wise for example: Apr, May, June, July, Aug, and Sept. If the period is Quarterly then the details will be furnished quarter wise means: Apr-Jun, Jul-Sep. Opening balance CENVAT Credit of This field shows the opening balance of CENVAT credit of service tax as on date.
6 (I) (a)
6 (I) (b)
Credit taken (for distribution) This field shows the amount on inputs service of CENVAT credit of Service tax taken for distribution on purchase of input services.
6 (I) (c)
Credit distributed
This field shows the amount of CENVAT credit of service tax which has been distributed to other units through Service Tax Distribution form. for This field shows the amount of CENVAT credit of service tax which has been loaded on Service account through Service tax distribution form. This field shows the closing balance after subtracting the sum of Sr. No. 6 (I) and (d) from the sum of Sr. No. 6 (I) (a) and (b). The program will furnish the details under this section on the basis of Service tax payment period. If the period is monthly then the details will be furnished month wise for example: Apr, May, June, July, Aug, and Sept. If the period is Quarterly then the details will be furnished quarter wise means: Apr-Jun, Jul-Sep. This field shows the opening balance of CENVAT credit of service tax ECESS and SHE CESS as on date. This field shows the amount of CENVAT credit of Service tax ECESS and SHE CESS taken for distribution on purchase of input services.
6 (I) (d)
Credit not distribution
eligible
6 (I) (e)
Closing balance
6 (II)
CENVAT credit of education Cess and secondary and higher education Cess Credit
6 (II) (a)
Opening balance of education Cess and secondary and higher education Cess Credit Credit of education Cess and secondary and higher education Cess taken (for distribution) on input service
6 (II) (b)
6 (II)
Credit of education Cess This field shows the amount and secondary and higher of CENVAT credit of service education Cess distributed tax ECESS and SHE CESS which has been distributed to other units through Service Tax Distribution form. Credit of education Cess This field shows the amount
6 (II) (d)
and secondary and higher of CENVAT credit of service education Cess not eligible tax ECESS and SHE CESS for distribution which has been loaded on Service account through Service tax distribution form. 6 (II) (e) Closing balance This field shows the closing balance after subtracting the sum of Sr. No. 6 (II) and (d) from the sum of Sr. No. 6 (II) (a) and (b).
Microsoft Business Solutions Navision 4.0 - Excise Invoice
Table of Contents
Overview of Functionality......................................................................................3 Detailed Setup...................................................................................................3 Comprehensive Functionality ............................................................................3 Report ...............................................................................................................4 Setup Required .....................................................................................................5 Location Card ....................................................................................................5 Sales Order .......................................................................................................6 Excise Invoice .......................................................................................................8 Sales Invoice with excise tax, sales tax, TCS and service tax ..........................8 Viewing the Posted Transaction ..................................................................13 Supplementary Excise Invoice ........................................................................25 Viewing the Posted Transaction ..................................................................31 CVD and ADC VAT Transaction......................................................................35 Viewing the Posted Transaction ..................................................................38 Sales Transaction with foreign currency..........................................................41 Viewing the Posted Transaction ..................................................................43 Sales invoice, where Direct Debit to PLA/RG functionality is used..................47 Viewing the Posted Transaction ..................................................................54 Excise Invoice with Goods Removed as Such ................................................56 Viewing the Posted Transaction ..................................................................58 Excise Transfer Invoice.......................................................................................62 Excise Transfer invoice with excise duty, other taxes and other charges........62 Viewing the Posted Transaction ..................................................................66 Excise Transfer invoice with CVD/ADC VAT ...................................................70 Viewing the Posted Transaction ..................................................................71
This feature is developed for the organization, engaged in manufacturing activity and in need of Excise Invoice for Sales Transaction and Stock Transfer. An invoice is the document under cover of which excisable goods are to be cleared by the manufacturer / trader of excisable goods. This document also indicates the assessment of the goods to duty. The program generates the following reports under this functionality: Excise Invoice Report Excise Invoice Transfer Report
Detailed Setup
Excise Invoice On the Sales Order header fill in details of transportation of goods.
Excise Invoice (Transfer) On the Transfer Order header fill in details of transportation of goods.
Following comprehensive functionalities are covered under the Excise Invoice functionality: Recording of details of transportation of goods. Generation of Excise Invoice report Generation of Excise Invoice (Transfer) report
Report
This report contains the details of excisable goods; sold to the customer. As per rule 11 (2) of the Central Excise Rule 2002; excisable goods can not be removed from the factory / ware house without an invoice; signed by the owner of the factory or by his authorized agent. Following information needed to be specified in the Invoice as per Rule 11(2) of Central Excise Rule 2002: Serially number Excise registration number Name of the consignee Description of goods Classification of goods (Tariff heading) Time and date of removal Mode of transport Vehicle registration number Rate of duty Quantity and value of the goods Duty amount.
The program generates the Excise Invoice report and Excise Invoice (Transfer) report.
Setup Required
Location Card
Fill in the fields according to these guidelines: Field C.E. Range Description Enter the number of the Central Excise Range under jurisdiction of which, the location is falling. Enter the name of the Central Excise Commissionerate under jurisdiction of which, the location is falling. Enter the name of the Central Excise Division under jurisdiction of which, the location is falling.
C.E. Commissionerate
C.E. Division
Field L.S.T. No.
Description Enter the Local Sales Tax (LST) number, assigned by the Sales Tax Authority. Enter the Central Sales Tax (CST) number, assigned by the Sales Tax Authority.
C.S.T No.
Sales Order
Fill in the fields according to these guidelines: Field Date of Removal Description Define the date of removal of goods from the factory in this field. Define the time of removal of goods from the factory in this field. Define the Lorry Receipt /Railway Receipt Number (LR/RR No.) in this field. Define the Lorry Receipt/Railway Receipt Date (LR/RR Date) in this field. Define the number of the vehicle, which is used to send the goods in this field. Define the mode of transport of goods in this field.
Time of Removal
LR/RR No.
LR/RR Date
Vehicle No.
Mode of Transport
Excise Invoice
Following types of transactions are considered to describe the functionality: 1. 2. 3. 4. 5. 6. Sales Invoice with excise duty, sales tax ,TCS and service tax Supplementary excise invoice CVD and ADC VAT transaction Sales transaction with foreign currency Sales invoice, where Direct Debit to PLA/RG functionality is used. Excise Invoice with Goods Removed as Such
Sales Invoice with excise tax, sales tax, TCS and service tax
Generation of Excise Invoice for Excisable Goods
Navigation: Sales & Marketing Order Processing Orders General Tab
Others Tab
To calculate Excise, fill the fields in the Sales Order window as follows: On the Header: No: Posting Date Structure: Location Code: Shipping Agent Code Time of Removal: Mode of Transport: Vehicle No: LR/RR No: LR/RR Date: 10000 02/04/07 STR6 BLUE DHL 3:30 PM ROAD HR-26 8362 LR/9743 01/04/07
On the first line: Type: No.: Description: Quantity: Unit Price: Line Discount %: TCS Nature of Collection: Item 1000 Bicycle 10 4000 10 A
On the second line: Type: No. Description: Quantity Unit Price Line Discount %: TCS Nature of Collection: Item 1110 Bicycle 20 400 20 A
On the third line: Type: No. Description: Quantity Unit Price TCS Nature of Collection: Calculate Structure Press F9 to view the excise amount G/L Account 8410 Advertising 1 10,000.00 A
Fill in the Inv. Discount Amount as 2000 Close the window
Open the Sales Line Zoom window for first sales Order line
The program populates 32.48 as excise effective duty rate. The program calculates the value as follows: Duty component BED SED AED(GSI) AED(TTA) SAED ADE ADET CESS NCCD eCess SHE Cess Calculation Type Excise % Excise % Excise % Excise % Excise % Excise % Excise % Excise % Excise % Excise % Excise % Effective Rate of Excise Calculation Formula LINE AMOUNT LINE AMOUNT LINE AMOUNT LINE AMOUNT LINE AMOUNT LINE AMOUNT LINE AMOUNT LINE AMOUNT LINE AMOUNT BED BED Rate 16.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 Effective Rate 16.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 0.32 0.16 32.48
Post the Sales Order.

Open Sales Invoice Line Zoom window for first Sales Invoice line
The program populates 32.48 as excise effective duty rate.
Navigate the sales invoice
G/L Entry
The program generates the following GL entries Particulars Customer A/C Discount A/C Discount A/C Advertising A/C Sales A/C Sales Tax A/C Excise Payable A/C TCS Payable-A Packing Other Taxes Freight Service Tax Payable Interim Dr/Cr Dr Dr Dr Cr Cr Cr Cr Cr Cr Cr Cr Cr Amount 85002.00 5600.00 2000.00 10000.00 48000.00 3840.00 16371.00 5711.00 750.00 4500.00 2400.00 1030.00
The program calculates excise according to the Excise Posting setup. The program does not generate excise invoice report for the sales invoice if, 1. Posted Str Order Line Details table does not contain any line for Tax/Charge Type as Excise. 2. The sales invoice is of trading transaction. The program considers sales invoice as trading transaction invoice if Trading field in sales invoice header is checked.
Note: 1. Service tax registration number will be populated in the invoice only when the service tax has been calculated in the invoice. 2. Other taxes and charges will be populated in the invoice only when charges or other taxes are calculated in the invoice.
Preview report Navigation: Posted Sales Invoice Print menu button Print Excise Invoice preview button
Note 1: You can post the same transaction from the Sales Invoice.
Note 2:
Charges, CST/LST /VAT, TCS, Service tax amount is calculated as zero value than the text of charges, CST/LST/VAT ,Service tax will not get printed in the excise invoice.
Scenario: Goods are dispatching directly from the manufacturers place to the
buyers place instead of dispatching the goods from the dealers premises. Goods can be dispatched directly from the manufacturer to the buyer. This dispatch is permitted only if the whole consignment is dispatched from the manufacturer to the ultimate buyer. In such a case, dealer will not issue CENVAT Invoice to the buyer. Buyer can take CENVAT credit on the basis of the manufacturer invoice, in case the buyer name is mentioned in the manufacturer invoice as consignee.
Excise Invoice Report

The report populates values as described below: Values under the Invoice heading Field Fixed Text Description The program populates fixed text as, INVOICE Invoice for removal of exercisable goods from the factory or ware house on payment of duty (rule 11 of CE (Second amendment) rule 2002) Assessee Address The program populates values from following information of assessee 1. Name 2. Address 3. Post Code/City 4. State 5. Country 6. Phone No 7. Fax No
The program populates following tax details of assessee Field Description E.C.C No The program populates ECC number in this field. The program copies value from E.C.C. No field in the Location Card which is selected on the sales header. If the Location field on the sales header does not contain value then the program copies the value from the E.C.C. No field in the Company Information.
C.E. Division
The program populates C.E. Division from in this field. The program copies value from the C.E. Division field in the Location Card which is selected on the sales header. If the Location field on the sales header does not contain value then the program copies the value from the C.E. Division field in the Company Information.
Range
The program populates Range in this field. The program copies value from the Range field in the Location Card which is selected on the sales header. If the Location field on the sales header does not contain value then the program copies value from Range field in the Company Information.
Commissionerate
The program populates Commissionerate in this field. The program copies value from the Commissionerate field in the Location Card which is selected on the sales header. If the Location field on the sales header does not contain value then the program copies value from the Commissionerate field in the Company Information. The program populates TIN No in this field. The program copies value from the TIN No field in the Location Card which is selected on the sales header. If the Location field on the sales header does not contain value then the program copies value from the TIN No field in the Company Information.
TIN No
CST No
The program populates CST No in this field. The program copies value from the CST No field in the Location Card which is selected on the sales header. If the Location field on the sales header does not contain value then the program copies value from the CST No field in the Company Information.
LST No
The program populates LST No in this field. The program copies value from the LST No field in the Location Card which is selected on the sales header. If the Location field on the Sales header does not contain value then the program copies value from the LST No field in the Company Information.
The program populates following values on the Invoice Detail heading Field Invoice No Description The program populates the invoice number in this field. The program copies value in this field from the No field on the Sales Invoice Header. The program populates the date and time of removal in this field. The program copies values in these fields from the Posting Date and Time of Removal field respectively on the Sales Invoice Header. The program populates the external document number in this field. The program copies value in this field from the External Document No field on the Sales Invoice Header.
Date and Time of Removal
External Document No
The program populates following values in Name and Address of the Customer heading Field Customer Name Description The program copies value for customer name from the Bill-to Customer Name field on the Sales Invoice Header.
Customer Address
The program copies value for customer address from the Bill-to Address and Bill-to Address 2 fields on the Sales Invoice Header. The program copies value for customer city from the Bill-to City field on the Sales Invoice Header The program copies value for customer state from the Bill to Customer State field on the Sales Invoice Header The program copies value for customer country on the basis of Bill-to Country Code and then the program copies value in Name field against country code. The program copies value for customer country on the basis of Bill-to Country Code and then the program copies value in Name field against country code. The program copies value in this field from Fax No field in Customer card. The program copies value in this field from the E-mail field in the Customer card. The program copies value in this field from the TIN No field in the Customer card. The program copies value in this field from the Customer card.
Customer City
Customer State
Customer Country
Customer Phone No
Customer Fax No
Email
TIN No
CST No
The program populates following values in various fields in Details of Consignee heading Field Consignee Name Description This field contains Consignee Name. The program populates value for consignee name from Ship-to Name in Sales Invoice header. The program populates value for consignee address from the Ship-to Address and Ship-to Address 2 fields on the Sales Invoice Header. The program populates value for consignee city from the Ship-to City field on the Sales Invoice header. The program populates value for the consignee state. The program populates value for consignee country. The program populates value in this field from the Name field against code which is in Ship-to Country Code field on the Sales Invoice header. . The program populates values in following columns Field S No Description This column contains the serial number of items sold. This column contains the description of item sold. This column contains the quantity of item sold,
Consignee Address
Consignee City
Consignee State
Consignee Country
Description
Quantity
UOM
This column contains the unit of measurement. This column contains the assessable value. Assessable Value will not get populated if, In Excise Posting Setup card BED Calculation type is Amount/Unit In Excise Posting Setup card BED Calculation type is Excise %+Amount/Unit In Excise Posting Setup card BED Calculation Formula is LINE AMOUNT and Line Discount % field in Sales line contains value and / or invoice discount is calculated in Sales Order/Invoice This column contains the tariff heading of item sold. This column contains the effective excise duty rate of item sold. Value in Excise Duty Rate will not get populated if, In Excise Posting Setup card BED Calculation type is Amount/Unit In Excise Posting Setup card BED Calculation type is Excise %+Amount/Unit In Excise Posting Setup card BED Calculation Formula is LINE AMOUNT and Line Discount % field in Sales line contains value and / or invoice discount is calculated in Sales Order/Invoice This column contains the excise duty on item sold. This column contains the central sales tax rate or value added tax rate or local sales tax rate which is applicable on the item. This column contains the applicable tax collected at source rate on invoice line.
Assessable Value (Rs)
CETSH
Excise Duty Rate
Central Excise Duty (Rs)
CST/VAT/LST%
TCS %
Unit Price (Rs)
This column contains the applicable unit price per unit of item. This column contains the line amount on item sold.
Line Amount (Rs)
Other fields in Excise Invoice Report Field Total Description This field contains the total of values in Line Amount (Rs) column. This field contains the total invoice discount on all items. This field contains the amount calculated by deducting Less Invoice Discount amount from Total amount. This field contains the total excise duty on invoice excluding excise eCess and excise SHECess amount. This field contains the total excise eCess amount. This field contains the total excise SHECess amount. This field contains the total central sales tax or value added tax or local sales tax applicable on invoice. This subsection contains the other taxes on invoice for example Octroi.
Less Invoice Discount
Total INR Excl. Taxes
Excise Amt.
Excise eCess Amt.
Excise SHECess Amt.
CST/VAT/LST Amount
Other Taxes
Charges
This subsection contains the Charges in invoice for example Packing, Freight. This field contains the total invoice amount including taxes. This field contains the amount in words, populated in Total INR Incl. Taxes field. This field contains the total assessable value of items. This field contains the mode of transport. The program copies value in this field from Mode of Transport field from the sales invoice header. This field contains the transporter name. The program copies value in this field from the Name field in the Shipping table against Code which is in the Shipping Agent Code field on the ales invoice header. This field contains the LR/RR number and date.
Total INR Incl. Taxes
Amount in Words
Total Assessable Value
Mode of Transport
Transporter Name
LR No and Date
Supplementary Excise Invoice

Generation of Supplementary Excise Invoice for Excisable Goods
To calculate Excise, fill the fields in the Sales Order window as follows: On the Header: No: Posting Date Structure: Location Code: Shipping Agent Code Time of Removal: On the first line: Type: No.: Quantity: Unit Price: Supplementary Source Document Type Source Document No. Charge (Item) Supplementary 1 10000 Yes Posted Invoice 103052 10000 01/04/08 STR6 BLUE DHL 10:10:13 PM
Open Item charge assignment window by clicking on Line menu button, Item Charge Assignment menu item
Open Sales Shipment Lines window by clicking on Functions menu button, Get Shipment Lines menu item
Select Shipment Lines of Source Document, Sales Invoice 103052
Click on OK button Open Suggest Item Charge Assignment window by clicking on Functions menu button, Suggest Item Charge Assignment menu item in Item Charge Assignment (Sales) window
Click on Amount radio button, then Ok button
The program assign charge amount between shipment line proportionately according to amount
Close Item Charge Assignment (Sales) window Calculate Structure Values View Sales Order Statistics
Close Sales Order Statistics window Post the Sales Order

The program generates the following GL entries Particulars Customer A/C Sales A/C Excise Payable A/C Dr/Cr Dr Cr Cr Amount 13,248.00 10,000.00 3,248.00
Note For supplementary excise invoice, the program populates text as: Invoice (Supplementary): as heading. The program populates the reference posted invoice number. This is the original sales invoice number against which supplementary invoice is posted. You can also post the same transaction from the Sales Invoice.
CVD and ADC VAT Transaction

To calculate excise, fill the fields in the Sales Order window as follows: On the Header: No: Posting Date Structure: Location Code: Shipping Agent Code Time of Removal: Mode of Transport Vehicle No LR/RR No LR/RR Date 10000 02/01/07 CVD BLUE DHL 4:51:53 AM Road HR-26 0001 LR/2547 01/04/07
On the first line: Type: No.: Description: Quantity: Unit Price: Line Discount %: CIF Amount BCD Amount On the second line: Type: No. Description: Quantity Unit Price Line Discount %: CIF Amount BCD Amount Calculate Structure Press F9 to view the excise amount Item 1110 Bicycle 20 400 20 200 100 Item 1000 Bicycle 10 4000 10 2000 1000
Statistics
Post Sales Order

The program generates the following GL entries Particulars Customer A/C Discount A/C Sales A/C Sales Tax A/C Excise Payable A/C Dr/Cr Dr Dr Cr Cr Cr Amount 58122.00 5600.00 48000.00 2236.00 13486.00
Note
1. You can also post the same transaction from the Sales Invoice.
Sales Transaction with foreign currency

To calculate excise, fill the fields in the Sales Order window as follows: On the Header: No: Posting Date Structure: Location Code: Shipping Agent Code Time of Removal: Mode of Transport Vehicle No LR/RR No LR/RR Date Relational Exch. Rate 10000 02/01/07 Excise BLUE DHL 4:51:53 AM Road HR-26 0001 LR/2547 01/04/07 40
On the first line: Type: No.: Description: Quantity: Unit Price: Line Discount %: Item 1000 Bicycle 10 100 10
On the second line: Type: No. Description: Quantity Unit Price Line Discount %: Calculate Structure Press F9 to view the excise amount Item 1110 Bicycle 20 10 20
Statistics
Post Sales Order

Navigate GL Entry
Preview GL Entry
The program generates the following GL entries Particulars Customer A/C Discount A/C Sales A/C Excise Payable A/C Dr/Cr Dr Dr Cr Cr Amount 55324.00 5600.00 48000.00 12924.00
Note: 1. The program generates Excise invoice in LCY where transaction is posted in foreign currency. 2. You can also post the same transaction from Sales Invoice.
Sales invoice, where Direct Debit to PLA/RG functionality is used

Enter the following details on the Sales Order header: No: Posting Date Structure: Location Code: Shipping Agent Code Time of Removal: Mode of Transport Vehicle No LR/RR No LR/RR Date 10000 01/04/07 Excise BLUE DHL 12:17 PM Road HR-26 0364 LR/2547 01/04/07
On the Sales Order first line: Type: No.: Description: Quantity: Unit Price: Line Discount %: Direct Debit to PLA/RG Item 1000 Bicycle 10 4000 10 Yes
On the sales order second line: Type: No. Description: Quantity Unit Price Line Discount %: Direct Debit to PLA/RG Item 1110 Bicycle 20 400 20 Yes
The program will open the Excise Cenvat Claim form as below:
The Excise Cenvat Claim form is displaying the available excise credit amount. It is also displaying the excise liability stands for the particular sales order. Click Detail to utilize the available credit amount against the liability. The program will open the Excise Cenvat Claim Detail form as below. In this form you can enter the amount on the RG 23 A tab. Each of the tabs in this window is representing the register of excise.
Enter the amount on the RG 23 A Part II tab corresponding to the excise duty liability component as par the example given below. RG 23 A BED Amount RG 23 A AED(TTA) Amount RG 23 A AED(GSI) Amount RG 23 A ADET Amount RG 23 A ADE Amount RG 23 A NCCD Amount RG 23 A SAED Amount RG 23 A SED Amount RG 23 A eCESS Amount RG 23 A SHE CESS Amount 6584 848 848 848 848 848 848 848 135 68
The available credit of RG 23 A Part II is utilized. The moment you have entered amount the Remaining Liability get reduced by credit utilized. Click on the RG 23 C Part II tab
Enter the amount on the RG 23 C Part II tab, in the RG 23 C ADC VAT column corresponding to the excise duty liability component BED Amount as 100. The available credit of RG 23 C Part II is utilized. The moment you have entered the amount, the Remaining Liability get reduced by the credit utilized. Click on the PLA tab
Enter the amount on the PLA tab, in the PLA BED Amount column corresponding to the excise duty liability component BED Amount as 100.
The available credit of PLA is completely utilized. The moment you have entered amount the Remaining Liability get reduced to zero. Thus Duty get settled in the following way: Duty components CREDIT AVAILABLE BED AMOUNT AED(GSI) AMOUNT AED(TTA) AMOUNT AED(TTA) AMOUNT SED AMOUNT SAED AMOUNT CESS AMOUNT NCCD AMOUNT ADET AMOUNT ADE AMOUNT ECESS AMOUNT ADC VAT AMOUNT SHE CESS AMOUNT Duty Payment 6,784.00 848.00 848.00 848.00 848.00 848.00 848.00 848.00 848.00 848.00 848.00 848.00 Duty Settled from RG 23 A Part II 6,584.00 848.00 848.00 848.00 848.00 848.00 848.00 848.00 848.00 848.00 848.00 848.00 RG 23 C Part II PLA 100.00
100.00
Click Escape to come out from the Excise Cenvat Claim Detail window. The Excise Cenvat Claim form will now display as below.
Click escape to come out of the Excise Cenvat Claim form. Post the Sales Order.

The posted information of sales order will display the entries.
Note:
1. The program populates the PLA Entry number, where excise payable is directly debited to PLA. 2. The program populates RG 23A Entry number, where excise payable is directly debited to RG 23 A. 3. The program populates RG 23C Entry number, where excise payable is directly debited to RG 23 C. 4. The program populates text Against C Form where transaction is against C form. 5. You can also post the same transaction from the Sales Invoice.
Excise Invoice with Goods Removed as Such

Enter the following details on the Sales Order header: No: Posting Date Structure: Location Code: Shipping Agent Code Time of Removal: Mode of Transport Vehicle No LR/RR No LR/RR Date 10000 01/04/07 Excise BLUE DHL 6:43 PM Road HR-26 0364 LR/2547 01/04/07
On the Sales Order first line: Type: No.: Description: Quantity: Unit Price: Item 1000 Bicycle 10 4000
On the sales order second line: Type: No. Description: Quantity Unit Price Item 1110 Bicycle 20 400
The program populates value excise duty in sales lines as,

Duty Line 1 Line 2
BED Amount eCess Amount SHE Cess Amount
6400.00 128.00 64.00
1280 25.60 12.80
Change the excise duty amount manual as, Duty BED Amount eCess Amount SHE Cess Amount Post the Sales Order Line 1 6500.00 120.00 60.00 Line 2 1200.00 24.00 12.00

Preview GL entry
The program generates the following GL entries, Particulars Customer A/c

Cost of Retail Sold Cost of Retail Sold Finished Goods Finished Goods Sales, Retail - Dom. Excise Payable Account Excise Payable Account
Dr/Cr Dr Dr Dr Cr Cr Cr Cr Cr
Amount
63,596.00 3,505.95 21.00 3,505.95
21.00
48,000.00 2,516.00 13,080.00
Note
1. The program populates text, Goods Removed As Such for the line where excise duty has been manually entered. 2. You can also post the same transaction from Sales Invoice.
Excise Transfer Invoice

You use the Excise Transfer Invoice report to print excise transfer invoice. You can print either all invoices or selected invoices after they are posted. The program does not generate excise transfer invoice report for the posted transfer shipment if, Posted Str Order Line Details table does not contain any line for Tax/Charge Type as Excise. Transfer shipment is for captive consumption. Transfer shipment is from trading location. Excise Transfer Invoice report populates some fields to be populated only when values are in such fields, ADC/VAT Amount Other Taxes Charges
Transactions
Following types of transactions are considered to describe the functionality: 1. Excise Transfer invoice with excise duty, other taxes and other charges 2. Excise Transfer invoice with CVD/ADC VAT
Excise Transfer invoice with excise duty, other taxes and other charges
Navigation: Warehouse Planning & Execution Transfer Orders
Click on the Others tab
Fill in the fields according to these guidelines: Field Date of Removal Description Define the date of removal of goods from the factory in this field. Define the time of removal of goods from the factory in this field. Define the Lorry Receipt /Railway Receipt Number (LR/RR No.) in this field. Define the Lorry Receipt/Railway Receipt Date (LR/RR Date) in this field. Define the number of the vehicle, which is used to send the goods in this field. Define the mode of transport of goods in this field.
Time of Removal
LR/RR No.
LR/RR Date
Vehicle No.
Mode of Transport
Enter the following details on the Transfer Order header: Transfer-from Code Transfer-to Code In.-Transit Code Structure Posting Date Shipping Agent Code Time of Removal: Mode of Transport Vehicle No LR/RR No LR/RR Date GREEN BLUE OUT. LOG. STR6 01/04/07 DHL 1:52:31 PM Road HR 26 / 2475 LR / 9758 01/04/07
On the Transfer Order first line: No.: Description: Quantity: Unit Price: 1000 Bicycle 10 4000
On the Transfer Order second line: No. Description: Quantity Unit Price 1110 Bicycle 20 400
Click Functions Calculate Structure Values Post Transfer Order
Open the Transfer Shipment Line Zoom window for first Transfer Shipment line
The program populates 32.48 as Excise Effective Duty rate.

Preview GL entry
The program generates the following GL entries, Particulars Finished Goods Finished Goods Unrealized Profit Account Unrealized Profit Account Excise Payable Account Packing Other Taxes Other Taxes Freight Residual Gains Dr/Cr Dr Dr Cr Cr Cr Cr Cr Cr Cr Cr Amount 14478.00 53236.05 7979.00 36494.05 15591.00 750.00 1500.00 3000.00 2400.00 0.00
Note:
2. The program populates the value in the Other Taxes field if other taxes are applicable in the transfer order. 3. The program populates the value in the Charges field if other charges are applicable in the transfer order. 4. Excise Duty Rate is the effective rate charges on the transfer order line. 5. The program does not generate the Excise Transfer Invoice for Captive Consumption Transfer Order.
Excise Transfer invoice with CVD/ADC VAT

Navigation: Warehouse Planning & Execution Transfer Orders
Enter the following details on the Transfer Order header: Transfer-from Code Transfer-to Code In.-Transit Code Structure Posting Date Time of Removal: Mode of Transport GREEN BLUE OUT. LOG. CVD (The structure contains a check mark in CVD field) 01/04/07 3:18:14 PM Road
Vehicle No LR/RR No LR/RR Date
HR 26 / 2475 LR / 9758 01/04/07
On the Transfer Order first line: No.: Description: Quantity: Unit Price: BCD Amount CIF Amount 1000 Bicycle 10 5000 30000 10000
On the Transfer Order second line: No. Description: Quantity Unit Price BCD Amount CIF Amount 1110 Bicycle 20 500 63000 2000
Click Functions Calculate Structure Values Post Transfer Order

Navigation:
Warehouse History Posted Documents Posted Transfer Shipments
Navigate GL Entry
View GL Entry
The program generates the following GL entries,

GL Account Finished Goods Finished Goods Inventory Adjmt., Retail Finished Goods Finished Goods Inventory Adjmt., Retail Finished Goods Finished Goods Inventory Adjmt., Retail Inventory Adjmt., Retail Finished Goods Inventory Adjmt., Retail Inventory Adjmt., Retail Finished Goods Unrealized Profit Account Excise Payable Account Unrealized Profit Account Dr/Cr Dr Dr Dr Dr Dr Dr Dr Dr Cr Cr Cr Cr Cr Cr Cr Cr Cr Amount 60,414.05 12,764.00 5,335.95 3,933.57 1,402.38 436 270.25 165.75 165.75 270.25 436 1,402.38 3,933.57 5,335.95 9,979.00 16,705.00 46,494.05
Notes: 1. The program populates the value in the Assessable Value as sum of CIF amount and BCD amount on the transfer line. 2. The program populates the value in the ADC/VAT Amount field, if ADC VAT is applicable in Transfer Shipment.

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Microsoft Business Solutions Navision 4.

0- Fringe Benefit Tax

G/L Account Card General Ledger Setup

Fringe Benefit Tax

Types of Fringe Benefits which are Liable for Tax:

Reimbursement of Expenditure from Client

Net Expenses to be Considered in case of Recovery from Employees

Capital or revenue expenditure

Value of Fringe Benefits

Value as per Section 115WC

Value as per Section 115WC

Any contribution by the employer to an approved superannuation fund for employees.

Value of Deemed Fringe Benefits

Value as per section 115WC

20% 20% 20% 5%

Use of hotel, boarding and lodging facilities

Value as per section 115WC 20%

50% 50% 50% 50% 50% 5%

Computation of Fringe Benefits Tax Liability

Rs. 10,00,000 10% If fringe benefit is above Rs. 10,00,000

Advance Payment of Fringe Benefit Tax

Return of Fringe Benefits

Different employers required to be audited.

Due date of the assessment year

Setup- Fringe Benefit Tax

Fill in the fields according to these guidelines: Field

Fill in the fields according to these guidelines: Field

Define the end date of the financial year.

Fill in the fields according to these guidelines: Field

Fill in the fields according to these guidelines:

Tax % eCESS % Value %

G/L Account Card

Fill in the fields according to these guidelines: Field

the GL account with FBT group.

General Ledger Setup

Fill in the fields according to these guidelines: Field

FBT Rounding Precision

NAVIGATION: Financial Management Setup General Ledger Setup

Viewing the Ledger Entries

In case of Reimbursement from Client

Viewing the Ledger Entries

Particulars Vendor To, Travel

Type Amount(Rs) DR 2000 CR 2000

The above entry will reflect in FBT Entry table.

In case of Capitalizing the Advertisement Expense in Balance Sheet

Viewing the Ledger Entries

In case Amount has to be Recovered from Employee

Viewing the Ledger Entries

Update FBT Entries

Recovered from Employee

Accounted in Balance Sheet

User can view the G/L Entry.

User can view the FBT entry.

To calculate FBT, fill in the fields according to these guidelines: Fields

Debited to profit and loss A/C

A/C for in the balance sheet

Recovered from Employee

Value of the fringe benefit

Total Tax Amount

Rounded Total Tax Amount

Total Surcharge Amount

Rounded Total Surcharge Amount

Total eCESS Amount