Download - Accounts Payable Journal
Accounts Payable Journal EntriesMarch 17, 2013
PURCHASE RELATED ACTIVITIES
Accounting entries get generated at the time of GR/IR, and invoice verification.
At the time of GR/IR, the following entry gets generated.
Inventory a/c………….…………..Dr. xxx
To GR/IR a/c……………………………..xxx
On doing the Invoice verification, the following entry gets generated and the liability is booked.
GR/IR a/c…………………………..Dr. xxx
To Vendor a/c……………………………xxx
At the time of invoice verification if there are differences between GR value and IR and if stock is not available the difference amount would go to price differences A/c.
1) PURCHASE – RAW MATERIAL
At the time of Goods Receipt the following entry gets generated (Ex. with notional figures).
For a P.O of Rs. 100(Basic 70 + Freight 10 ) (when freight is borne by the company)
Inventory (Raw-material) a/c………………….Dr 80
To GR/IR Clearing a/c……………………………….70
To Freight clearing a/c………………………………10
On doing the Invoice Verification, the following entry gets generated.
GR/IR Clearing a/c……..……………..Dr. 70
Freight Clearing a/c……………………Dr. 10
To Vendor a/c ……………………………….70
To Vendor a/c………….……………………10
2) PURCHASE – TRADED GOODS
In case of traded goods, the entries would be as below:
On receipt of the goods
Inventory (Traded) a/c…………………………..Dr. xxx
To GR/IR Clearing a/c………………………………….xxx
On doing the Invoice Verification, the following entry is generated.
GR/IR Clearing a/c……………………………Dr. xxx
To Vendor a/c…………………………………………..xxx
3) PURCHASE – CONSUMABLES
In case of Consumables, the entries would be as below:
On receipt of the Consumables
Inventory (Consumables) a/c…………………………..Dr. xxx
To GR/IR Clearing a/c………………………………….xxx
On doing the Invoice Verification, the following entry is generated.
GR/IR Clearing a/c……………………………Dr. xxx
To Vendor a/c…………………………………………..xxx
4) PURCHASE – PACKING MATERIAL
In case of Packing Material, the entries would be as below:
On receipt of the Packing Material
Inventory (Packing Material) a/c…………………………..Dr. xxx
To GR/IR Clearing a/c………………………………….xxx
On doing the Invoice Verification, the following entry is generated.
GR/IR Clearing a/c……………………………Dr. xxx
To Vendor a/c…………………………………………..xxx
5) IMPORT PURCHASES
In case of Import Purchases, the process remains the same but for the additional charges, which are included in the cost of inventory.
The same is processed in MM module.
The following accounting entry gets generated on receipt of goods.
Inventory a/c……………………………..Dr. xxx
To GR/IR Clearing a/c………………………..xxx
To Freight Clearing…………………………..xxx
On doing the Invoice Verification, the following entry gets generated.
GR/IR Clearing a/c………………………Dr. xxx
Freight Clearing a/c…………………….Dr. xxx
To Vendor a/c…………………………………xxx
To C&F Vendor……………………………….xxx
6) PURCHASE RETURNS
The transactions related to purchase returns are processed in MM.
The entries that get generated on processing such transactions are:
GR/IR a/c…………………………………..Dr. xxx
To Inventory a/c……………………………….xxx
SAP-ACCOUNTS PAYALBE JOUNAL ENTRIES
December 14, 2012
During GOODS RECEIPT at Store MIGO
Raw Material Stock Dr. 1000
GR/IR clearing Cr. 1000
During Excise Invoice Credit J1INEX
Cenvat Account Dr. 200
Cenvat Clearing Cr. 200
During Invoice Verification MIRO
Cenvat Clearing Dr. 200
GR/IR Clearing Dr. 1000
Vendor Payable Cr. 1200
Return goods to Vendor (Credit Memo) FB65
Vendor A/c Dr. 5000
TO Raw Material A/c Cr. 5000
VENDOR INVOICE POSTING FB60/F-43/FV60
Rent Invoice, Office Stationary Purchase invoice ,Professional Fees (Charted Accountant) ,Postage &
telegram Charges invoice, Telephone Charges invoice Electric Charges invoice, Sub-contractor Service
charges invoice, mobile bill
Telephone Charges A/c Dr. 2500
TO Vendor A/c Cr. 2500
TDS Accounting Entry with Advance to Vendor F-47/F-48
VENDOR A/C Dr. 10000
TO OUT GOINGING BANK Cr. 9900
TO TDS A/C Cr. 100
With Invoice Posting FB60/F-43/FV60
RENT A/C Dr. 20000
TO VENDOR A/C Cr. 19900
TO TDS A/C Cr. 100
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CIN Accounting EntriesJanuary 7, 2013
Accounting entry in procurement~ For Domestic Procurement of Raw Material
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr.
Cenvat Clearing Cr.
During Invoice Verification
Cenvat Clearing Dr.
GR/IR Clearing Dr.
Vendor Payable Cr.
For Domestic proceurement of Capital Goods
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr. (50%)
Cenvat On-hold Dr. (50%)
Cenvat Clearing Cr.
During Invoice Verification
Cenvat Clearing Dr.
GR/IR Clearing Dr.
Vendor Payable Cr
Subsequent of Capital Goods
Cenvat Account Dr. (50%)
Cenvat On-hold Cr. (50%)
For Import Procurement of Raw Material
During Customs Duty Clearing invoice
Custom Clearing Dr.
Custom Payable Cr.
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr.
Custom Clearing
During Invoice Verification
GR/IR Clearing Dr.
Vendor Payable Cr.
For Excise Duty Credit of Raw Material without PO
Cenvat Account Dr.
Cenvat Clearing Cr.
For Excise Duty Reversal through Excise JV
Cenvat Clearing Dr.
Cenvat Account Cr.
Accounting entry when the goods are issued through MM and Excise invoice is Credited(J1IS &J1IV)
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr. Note: Cenvat Suspense Account should be cleared apprpiately using FI JV’s.
Accounting Entry in subcontracting reversal/Recredit
For Subcontracting Challan Reversal Cenvat Reversal Dr.
Cenvat Account Cr.
For Subcontracting Challan Recredit
Cenvat Account Dr.
Cenvat Reversal Cr.
Accounting Entry in SD
For Factory Sale During Billing Document
Customer Account Dr.
Sales Account Cr.
Cenvat Suspense Account Cr.
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.
For Stock Transfer through SD
No Accounting entries for Performa Billing Document During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr. Note: Cenvat Suspense Account should be cleared appropriately using FI JV’s.
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What is Personal Ledger Account or PLA? How is it maintained?
June 20, 2013
Personal ledger Account is an account with the Central Government, which is utilized for payment of duty of excise. The account is credited when the sum is deposited into the treasury and debited on payment of excise duty. Each debit and credit entry should be made on separate lines and assigned a running serial number for the financial year. The PLA must be prepared in triplicate by writing with an indelible pencil and using double sided carbon.Original and duplicate copies of PLA shall be sent to the Central Excise Officer in chargealong with the monthly/quarterly return.The assessee may make credit in the PLA by making cash payment into the treasury or authorised bank through TR-6 challan. Copy of each such challan shall be sent by the assessee to the Central Excise Officer along with the monthly/quarterly return.No restrictions exist with regard to any minimum amount, which should necessarily remain in balance to the credit of an assessee in his PLA. With the monthly payment system, there should be enough credit at the time of payment of duty for the month.Mutilations or erasures of entries once made in the PLA are not allowed. If any correction becomes necessary, the original entry should be scored out and attested by the assessee or his authorized agent.in SAP Scenario:Personal ledger Account is a register, which is used to pay excise duty liability to the government . In Sap the process as followed is:
1.You pay the PLA through T Code F-02 through PLA on Hold A/c. The Accounting entry is:
PLA on Hold Dr
Bank Cr
or
Excise Duty Deposit Dr
Bank A/c Cr
2. Create excise JV with Transaction code J1IH in TR6. The accounting entry is
PLA A/c Dr
PLA on Hold Cr
Or
Excise Duty Paid Dr
Excise Duty Deposit Cr
3. Now run the utilization
Excise Duty Payable Dr
Excise Duty Credit A/c Cr
PLA A/c Cr
Service Tax Credit A/c Cr
Suppose in a particular month excise liablity is $ 100 but in CENVAT A/c $60 only balance $40 we liable to pay cash/bank in pla account through GAR-7General Scenario:When any company or manufacturer buys his good from supplier, supplier has to get his money and excise duty on these goods. After its production, when manufacturer sells these goods to his customers and distributors, he will get his money and excise duty. On this received excised duty, he will get the power ofexcise credit on his purchased goods under Cenvat Act. It means, he will deduct
his total paid or payable excise duty from total received or receivable excise duty and balance, he will deposit in Govt. account. It is just same like VAT rules. Following are the main journal entries which are relating to excise or excise duty.In the Books of Manufacturer1. When we purchase goods with Excise duty on Purchase
Inventory Raw material A/c Dr $1000
Excise Duty on Purchase A/c Dr $200
Creditor A/c Cr $1200
2. When we sell goods with Excise duty on Sale
Debtor A/c Dr $1750
Sale A/c Cr $1500
Excise Duty on Sale $Cr 250
3. When Excise Duty Paid in Advance Excise Duty in Advance Dr $20 Bank Account of Govt. Cr $20
4. Excess of Excise duty on sale over excise duty on purchase and excise duty in advance will be payable to Govt.
Excise Duty on Sale A/c Dr $250Excise Duty on Purchase A/c Cr $200Excise Duty in Advance Cr $. 20* PLA Credit $305. When Excise duty is paid in Govt. Account * PLA Debit $30 Bank Account of Govt. Credit $30As per SAP SD Scenario:During Billing Document
Customer Account Dr.
Sales Account Cr.
Cenvat Suspense Account Cr.
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.
As per SAP MM Scenario:
For Domestic Procurement of Raw Material
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr.
Cenvat Clearing Cr.
During Invoice Verification
Cenvat Clearing Dr.
GR/IR Clearing Dr.
Vendor Payable Cr.
For Domestic procurement of Capital Goods
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr. (50%)
Cenvat On-hold Dr. (50%)
Cenvat Clearing Cr.
During Invoice Verification
Cenvat Clearing Dr.
GR/IR Clearing Dr.
Vendor Payable Cr
Subsequent of Capital Goods
Cenvat Account Dr. (50%)
Cenvat On-hold Cr.
For Import Procurement of Raw Material
During Customs Duty Clearing invoice
Custom Clearing Dr.
Custom Payable Cr.
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr.
Custom Clearing Cr.
During Invoice Verification
GR/IR Clearing Dr.
Vendor Payable Cr.
For Excise Duty Credit of Raw Material without PO
Cenvat Account Dr.
Cenvat Clearing Cr.
For Excise Duty Reversal through Excise JV
Cenvat Clearing Dr.
Cenvat Account Cr.
Accounting entry when the goods are issued through MM and excise invoice is created (J1IS & J1IV)
For Subcontracting Challan ReversalCenvat Reversal Dr.
Cenvat Account Cr.
For Subcontracting Challan Recredit
Cenvat Account Dr.
Cenvat Reversal Cr.