CIN Accounting Entries

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 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. (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 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) 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 apprpiately using FI JV's.