The document discusses journal entries for accounts payable in an accounting system. It provides examples of entries for goods receipt, invoice verification, returns, vendor payments, taxes, and other expenses. Specific entry examples are given for raw materials, consumables, packing materials, imports, and capital goods. The document also discusses entries for excise duty, customs duty, subcontracting, and sales.
The document discusses journal entries for accounts payable in an accounting system. It provides examples of entries for goods receipt, invoice verification, returns, vendor payments, taxes, and other expenses. Specific entry examples are given for raw materials, consumables, packing materials, imports, and capital goods. The document also discusses entries for excise duty, customs duty, subcontracting, and sales.
The document discusses journal entries for accounts payable in an accounting system. It provides examples of entries for goods receipt, invoice verification, returns, vendor payments, taxes, and other expenses. Specific entry examples are given for raw materials, consumables, packing materials, imports, and capital goods. The document also discusses entries for excise duty, customs duty, subcontracting, and sales.
The document discusses journal entries for accounts payable in an accounting system. It provides examples of entries for goods receipt, invoice verification, returns, vendor payments, taxes, and other expenses. Specific entry examples are given for raw materials, consumables, packing materials, imports, and capital goods. The document also discusses entries for excise duty, customs duty, subcontracting, and sales.
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The document discusses different types of purchases like raw materials, traded goods, consumables, packing materials, and import purchases. It provides details of the journal entries passed for goods receipt and invoice verification for each type of purchase.
The different types of purchases discussed are raw materials, traded goods, consumables, packing materials and import purchases. For each type, the document explains the journal entries passed for goods receipt and invoice verification.
For import purchases, the journal entries include booking inventory account on goods receipt, passing entry to customs clearing account on excise invoice creation and booking GR/IR clearing account on invoice verification.
Accounts Payable Journal Entries
March 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/cxxx 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/c10 On doing the Invoice Verification, the following entry gets generated. GR/IR Clearing a/c....Dr. 70 Freight Clearing a/cDr. 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/cDr. 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/cDr. 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/cDr. 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/cDr. xxx Freight Clearing a/c.Dr. xxx To Vendor a/cxxx 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 About these ads
CIN Accounting Entries January 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 J V
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 JVs. 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 JVs. About these ads
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-7 General 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 $250 Excise Duty on Purchase A/c Cr $200 Excise Duty in Advance Cr $. 20 * PLA Credit $30 5. When Excise duty is paid in Govt. Account * PLA Debit $30 Bank Account of Govt. Credit $30 As 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 Reversal Cenvat Reversal Dr. Cenvat Account Cr. For Subcontracting Challan Recredit Cenvat Account Dr. Cenvat Reversal Cr.
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