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How to: Charge Direct Debit to a Personal Ledger Account

When inputs or capital goods on which Central Value Added Tax (CENVAT) credit is obtained are removed before processing from the factory, the manufacturer of the final products must pay the CENVAT credit amount obtained on inputs or capital goods when they are received. If the inputs or capital goods are removed after processing from the factory, the manufacturer must pay excise duty that is calculated when the inputs or capital goods are removed. Both payments can be made by debiting the amounts from the Personal Ledger Account (PLA), RG 23 A Part II, and RG 23 C Part II registers. For more information, see How to: Print Personal Ledger Account Reports, and How to: Print RG 23 A and RG 23 C Reports. The PLA and CENVAT credit receivable and PLA amounts are credited, and excise payable amounts are debited.

You can pay the excise duty levied on goods when a sales order or sales invoice is posted.

The following procedure describes how to charge direct debit to PLA for sales orders, but the same steps also apply to sales invoices.

To charge direct debit to a personal ledger account for a sales order

  1. In the Search box, enter Sales Orders, and then choose the related link.

  2. On the Home tab, choose New.

  3. On the General FastTab, fill in the required fields as described in the following table.

    Field Description

    No.

    The sales order number.

    Sell-to Customer No.

    The customer number for which the excise business posting group must be defined.

    Structure

    The structure for excise tax to be attached to the sales order.

    Posting Date

    The posting date for the sales order.

  4. On the Lines FastTab, fill in the required fields as described in the following table.

    Field Description

    Type

    The sales order line type.

    Direct Debit To PLA / RG

    Select to debit amounts from the PLA/RG account when the sales order is posted.

  5. To calculate structure values, on the Actions tab, in the Functions group, choose Calculate Structure Values.

  6. On the Actions tab, in the Functions group, choose Direct Debit to PLA/RG.

    The Excise Cenvat Claim window lists the amounts in the excise and CENVAT registers.

  7. Choose the OK button.

  8. In the Sales Order window, on the Actions tab, in the Posting group, choose Post.

  9. In the dialog box, select one of the following options:

    • Ship

    • Invoice

    • Ship and Invoice

  10. Choose the OK button.

See Also

Tasks

How to: Print Personal Ledger Account Reports
How to: Print RG 23 A and RG 23 C Reports

Concepts

Excise Tax Overview

Other Resources

Direct Debit to PLA / RG Field
Sales Order Window
Sales Invoice Window
Posting Sales Orders