Completion, Reversal, and Recredit (SAP Library

Completion, Reversal, and Recredit

Use

You use this function to close a challan completely after all the materials have been accounted for. If a challan's return date has elapsed, and thus your right to the CENVAT credit, you use it to reverse the excise credit – or, should your subcontractor return the goods subsequently, to recredit the excise credit.

To access the function, from the SAP Easy Access screen, choose Indirect Taxes → Procurement → Subcontracting → Subcontracting Challans → Complete/Reverse/Recredit.

Features

Exactly which function is available depends on the challan's status as follows:

Completion

You can complete a challan if you have accounted for all of the materials in it (and it thus has the status Fully Reconciled). This prevents you from making any more changes to it.

Reversal of CENVAT Credit

If the allotted number of days elapses and the subcontractor has not returned some or any of the materials in the challan (status: Posted or Assigned), you must reverse the excise duty that you have credited to your CENVAT account. The scrap has to be returned by the subcontractor. If it is not returned, the excise duty for the scrap has to be reversed.

This function sets the status to Reversed. From here, you have two options:

If you do note expect the subcontractor to return the materials, you can complete it.

If you do expect the subcontractor to return at least some of the materials, you can leave it as it is for the time being. Then, when the materials arrive, you can recredit the excise duty to the account (see below).

Recredit

If a subcontractor returns materials after the return date, you can recredit the excise duty credit that you have reversed.