| # Financial postings for Purchase returns This functionality is specific for India. When purchased excisable goods are returned to the supplier, the receipts for these goods must be maintained separately. You must reverse the transactions for utilized amounts of CENVAT credit. The financial postings for CENVAT credit, when the purchased goods are returned, are explained with the following example: Example: 10 items of item A are purchased at INR100 each, with excise duty at 16 per cent, of which, six items are accepted and four are returned. Note The ledger accounts are defined for each excise tax code in the Posting Data for Tax Codes (tfgld0171s000) session. The Supplier Control account is defined in the Accounts by Financial BP Group (tfacp0110m100) session. Step 1. On purchase of goods Cenvat credit availed
Debit/ Credit | Ledger Account | Amount
--- | --- | ---
Debit | Purchase | INR 1000
Debit | CENVAT Credit Available | INR 160
Credit | Supplier control | INR 1160
Step 2. On Purchase returns the cenvat credit amount reversed
Debit/ Credit | Ledger Account | Amount
--- | --- | ---
Debit | Supplier control | INR 464
Credit | CENVAT Credit Available | INR 64
Credit | Purchase returns | INR 400
Related topics Excise duty process for Purchase returns |