Utilization of CENVAT

Use
Utilization of CENVAT scenario is used to calculate how much excise duty you must remit to the
authorities. Legislation requires you to remit excise duty monthly. Companies are allowed five
days to remit the excise duty, except for the month of March.
Once the report has determined how much you have to pay, it allows you to specify where the
money should be paid from – whether it should be deducted from the CENVAT credits that you
have accumulated in RG23A Register or RG23C Register, or whether it should be deducted from
the personal ledger account (PLA). You have an option to select the appropriation amounts as
required.

Prerequisites
Excise Invoices must be posted in the system to arrive the CENVAT Payable for deliveries made
from the factory. The CENVAT payable amount shall be captured to a clearing account as a
liability i.e. Credit At the time of utilization of CENVAT system will post the Debit entry to the same
account based on the account assignments in the Customization.

Procedure

1. Access the transaction choosing one of the following navigation options:

SAP R/3 menu Country India User Menu(J1ILN)  Indirect Taxes  Sales /
Outbound Movements  Fortnightly Payment
Transaction Code J2IUN

2. On the Fortnight Utilization of CENVAT screen, make the following entries:

  Press on this icon to know when the CENVAT was
utilized last.

 Press this icon to see all the pending excises payable

till date. Please note that the selection dates will not apply for this icon and it will display
all the invoices till date.

 If payment of excise duty is required to be carried out from service tax credit, then select
radio button “Pay CENVAT from Ser Tax Cr”. Enter the accounts for service tax credit and
Ecess on service tax.

Alternatively, for service tax payment if CENVAT credit is to be utilized, then select “PaySer Tax
from CENVAT cr”. Enter the accounts for service tax Payable and ECS on service tax payable.
 Enter the date range in period field for which utilization is to be posted.
Example if utilization for the month of March 2005 enter the from date as 01.03.2008 and To date
as 31.03.2008
 If the selection need to be restricted for some invoices , enter Excise invoice
numbers in Excise invoice has to be used otherwise system will select all entire invoices
in the given period
3. Choose on execute icon
The screen shows two tables, the first containing the details of the duty payable components and
the second the accounts from which duty can be paid. Each duty payable component is to be
selected one at a time and the accounts from where credit can be utilized are to be selected
through entry in the utilization field in the second table. This table also displays the available
balance which is updated at runtime.

Display the amount

payable for the selected
period or Invoices

Display the
amount
available for
utilization

Input the Amount based on the payable under BED, ECS and SECess, The input value
cannot exceed the amount available for utilization
  Balance utilization must be equal to the Amount payable.

After inputting the values use the simulate

Then system displays the necessary message whether document can be posted, or displays
the difference amount needs to be adjusted against RG23A, RG23C or PLA Balance
Utilization.

Result

Part 2 posted and accounting document 5500206 generated