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Procure to Pay Localization

Procure to Pay – Localization Entries
Purchase Value 100
Excise 16+ Cess 2+ S.H. Cess 1                     19
VAT  4
Non-Recoverable Tax Like Freight 10
At the time of Purchae Order No Entry
Receipts of Inventory (Only Localization Entry)
Receiving Inventory Dr  29.00 
VAT Interim Recovery Dr  4.00 
To Inventory AP Accrual Cr  33.00
On Generation of AP Invoice
Inventory AP Accrual Dr 133
To AP Liability Cr 133
On Claiming Excise (Cenvat Adj)
RG23APart II (Cenvat RM) Dr  16.00 
RG23APart II (Cess RM) Dr  2.00 
RG23APart II (S.H. Cess RM) Dr  1.00 
(Account code will be picked from 
Organization Additional Information)
To Receiving Inventory Cr  19.00
On Claiming VAT
VAT Recovered Dr  4.00 
To VAT Interim Recovery Cr  4.00
On Delivery (Non Recoverable)
Material Dr  10.00 
To Receiving Inventory Cr  10.00
Order To Cash – Localization Entries
Cost  110.00 
Sales Value  130.00 
Excise  20.00 
VAT  6.00 
Sales
COGS Dr  110.00 
To Material Cr  110.00
On Generation of AR Invoice
Receivable Dr  156.60 
To Excise Paid/Payable Cr  20.00
To Cess  Paid/Payable Cr  0.40
To S.Cess  Paid/Payable Cr  0.20
To VAT Interim Liability Cr  6.00
To Revenue Cr 130.00
After Running India-Excise Invoice Generation (OM)
Excise Paid/Payable Dr  20.00 
Cess  Paid/Payable Dr      0.40 
S.Cess  Paid/Payable Dr      0.20 
To RG23AP II (or) RG23AC II (Cenvat RM) / PLA Cr  20.60
(Credit is based on Register preferences set in org. addl. Info)
After Running India-VAT Invoice Generation/Accounting  (OM)
VAT Interim Liability Dr  6.00 
To VAT Liability Cr    6.00
Procure to Pay – Localization Entries (Service Tax)
At the time of Purchae Order No Entry
Receipts of Services
Service Tax Interim Recovery Dr xxx
To Expense AP Accrual Cr  xxx
On Generation of AP Invoice
Expense AP Accrual Dr  xxx
To AP Liability Cr  xxx
After Running India-Service Tax Processing
(Service Tax can be recovered only after Payment)
Service Tax Recovered Dr  80.00 
To Service Tax Interim Recovery Cr  80.00
Order To Cash – Localization Entries (Service Tax)
Sales
COGS Dr  xxx
To Material Cr  xxx
On Generation of AR Invoice
Receivable Dr  xxx
To Service Tax Interim Liability Cr  200
To Revenue Cr  xxx
After Receipt & Running India-Service Tax Processing
Service Tax Interim Liability Dr  200 
To Service Tax Liability Cr  200
Service Tax Recovered (AP)  Rs.80/-
Service Tax Liability     (AR) Rs.200/-
On Settlement (Smillar entry for VAT Settlement also)
Service Tax Liability Dr  80.00 
To Service Tax Recovered Cr  80.00
Service Tax Liability Dr 120.00 
To AP Liability Cr 120.00
(Balance payable to Authority)
Procure To Pay – Customs Localization Entries (Import – BOE)
Recoverable  60.00 
Non-Recoverable  40.00 
Total   100.00 
At the time of Purchae Order No Entry
Receipts of Inventory
Receiving Inventory Dr 100
To  BOE Account Cr  100
On Delivery – Non Recoverable (Moving to FG / Stores )
Material Dr  40
To Receiving Inventory Cr  40
Claiming Excise (Cenvat Adj) – Recoverable Portion
RG23AP II (or) RG23CP II (Cenvat RM) Dr  60
To Receiving Inventory Cr  60

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