Drill down from the statistics of vouchers to view the summary of included transactions, excluded transactions, and uncertain transactions.
This report displays the logical grouping of voucher types used for recording excise transactions which are captured in ER 3. The total voucher count displayed here will be same as the count shown in the Included Transactions row of ER 3 report.
The excise forms are tax unit based. The transactions in which the selected tax unit has been tagged will be displayed in the 'Included' list of transactions.
The sales or purchase transaction recorded or the CENVAT availment entry should be such that both it affects both the accounting books and the inventory books of the company.
The duty applicable should be grouped under Excise or CENVAT.
To view the Summary of Included Vouchers screen, select Included Transactions, and press Enter.
The Summary of Included Vouchers screen appears as shown below:
The transactions are grouped under the following categories:
All excise sales transactions with one of the following selected as nature of removal:
Domestic
Captive Consumption
Special Rate
Exempt (100% EOU)
Export/Bond
Export/LUT
SEZ/Bond
SEZ/LUT
Export/Rebate
SEZ/Rebate
Inter Unit Transfer
Removal as Such
All excise purchase transactions with one of the following selected as the nature of purchase:
Manufacturer
First Stage Dealer
Second Stage Dealer
Rule 11 Supplementary Invoice raised against original Rule 11 invoice for escalation in price per unit and rate of duty will also be considered in the Included Transactions if:
The Rule 11 invoice number and date of original sales are available
The Rule 11 invoice, original and supplementary invoice, are of the same quarter
All credit note (sales return) transactions with one of the following selected as the nature of purchase:
Manufacturer
First Stage Dealer
Second Stage Dealer
All debit note (purchase returns) transactions with one of the following as the nature of removal:
Home Clearance
Domestic
Captive Consumption
Special Rate
Exempt
Export/Bond
Export/LUT
SEZ/Bond
SEZ/LUT
Export/Rebate
SEZ/Rebate
Inter Unit Transfer
Removal as Such
All manufacturing journals recorded with Finished Goods as Stock Item Type.
All journal entries recorded with excise adjustment flags.
The transactions that are in the included category can be excluded, if required.
To exclude a voucher
Select the transaction to be excluded.
Press Enter to drill down to the Included Vouchers report.
Click X: Exclude Vouchers.
A message Do you want to exclude this voucher? is displayed. Click Yes to exclude the voucher.
This report displays all the transactions that are not considered for the generation of Form ER3. The following transactions will be classified as excluded:
Transactions which do not have excise implications
Any transaction which does not involve inventory.
Any transaction that does not affect the accounting books (For example, Order vouchers, Delivery Note, Receipt Note, and so on.)
Sales transactions with Removal as Such selected as the Nature of Removal.
To view the Summary of Excluded Vouchers screen, select Excluded Transactions, and press Enter.
The Summary of Excluded Vouchers screen appears as shown below:
The transactions are grouped under the following categories:
It displays count of transactions which fulfils all requirements of Form ER 3 but belongs to another excise unit.
As contra voucher will not be used for excise related transactions, the voucher is excluded.
Order vouchers such as sales order, purchase order, job work out order and job work in order will not have impact on financial statements nor will they be used for any excise transactions.
Inventory vouchers such as physical stock voucher, rejection in/out voucher, delivery note/receipt note, material in/out do not have excise implications and these vouchers are excluded.
Payroll and attendance vouchers which are used for maintaining employee records, processing salary, and so on are excluded.
This includes transactions which are intentionally excluded by users.
Payment
The following payment transactions are excluded:
Payment vouchers having VAT/Service Tax/TDS/TCS ledgers
All expense payments recorded using bank/cash ledgers, where expense ledgers are debited and cash/bank ledger is credited
Receipt: All receipts recorded using bank/cash ledgers, where party ledgers or income ledgers (without Inventory) are credited and Cash/Bank ledger is debited without selecting sales and duty ledgers
Sales
Sales invoices recorded purely for service rendered where excise is not applicable are excluded
Sales invoice recorded in Payment voucher selecting the Nature of Removal as Removal as Such
A Supplementary Invoice of current return period which relates to original invoice of previous return period is excluded.
Note: If the duty charged in Supplementary invoice of current period is paid to department then the payment transaction will be displayed under Duty Payment section.
Journal: All journal vouchers recorded for non-excise transactions are excluded
Purchase: All purchases recorded purely for service received where excise is not applicable are excluded
Debit/Credit Note: The following transactions are excluded from Form ER 1
Purchase returns recorded in debit/credit note without selecting excise ledgers
Sales returns recorded in debit/credit note without selecting excise ledgers
Debit note recorded for availing CENVAT Credit after six months of original purchase date
Credit note recorded without identifying the Nature of Purchase or by setting it the Nature of Purchase to Not Applicable
It displays the count of Memorandum vouchers and Reversing Journal Vouchers.
It displays the count of vouchers cancelled by user.
The transactions in the excluded list can be pushed to the included list, if required by drilling down to the voucher and resolving the exception.
For example, if the incorrect tax unit was selected for a transaction, drill down to the voucher and change the tax unit.
Transactions with missing or mismatched information in transactions will be displayed under uncertain transactions.
To view the Summary of Exceptions screen, select Uncertain Transactions, and press Enter.
When the information provided in the masters created is uncertain, the exception is listed under Master Related Exception.
When appropriate excise details like stock item type and conversion factor are not defined, or if there is a mismatch in the details entered, the transaction will be listed under this category of exception.
Unable to determine the Stock Item Type
Reason
If the option Excise Applicable? has been set to Not Applicable in the stock item, then the Stock Item Type will not be defined.
Solution
This exception can be resolved by setting the appropriate stock item type.
To set the item type
Press Enter on the transaction.
Click S: Set Item Type.
Select the Nature of Removal, as required.
Press Esc.
Click F6: Save.
Press Enter.
The modification made is saved, and the exception is resolved.
Note: Alternatively, click X: Exclude Vouchers from the Uncertain Vouchers screen to exclude the transaction.
Unable to determine the Conversion Factor
Reason
If the option Excise Applicable? has been set to Not Applicable in the stock item, then the conversion factor to convert the UOM to the excise reporting unit will not be defined.
Solution
This exception can be resolved by defining the conversion factor.
To set the conversion type
Press Enter on the transaction.
Enter the conversion factor.
Press Esc.
Click F6: Save.
Press Enter.
The modification made is saved, and the exception is resolved.
Note: Alternatively, click X: Exclude Vouchers from the Uncertain Vouchers screen to exclude the transaction.
Mismatch in expected & actual type of stock item
Reason
A transaction will be classified under this exception type when there is a mismatch in the nature of purchase or removal, and the stock item type. The mismatches causing exceptions are:
The Nature of Removal is Removal as Such and the Stock Item Type is Finished Goods
The Nature of Purchase is Manufacturer and the Stock Item Type is Finished Goods
The Nature of Removal is Domestic and the Stock Item Type is Principal Input
This exception can be resolved by solving the mismatch between the nature of removal/purchase and the stock item type selected.
To set the item type
Press Enter on the transaction.
Click S: Set Item Type.
Select the Nature of Removal, as required.
Press Esc.
Click F6: Save.
Press Enter.
The modification made is saved, and the exception is resolved.
Note: Alternatively, click X: Exclude Vouchers from the Uncertain Vouchers screen to exclude the transaction.
When the information provided in the duty ledger is uncertain, the exception is listed under Duty Ledgers.
Unable to determine Tax Type and Duty Head for duty ledger
Reason
If the duty ledger selected in a transaction doesn't have the Type of Duty selected, and hence the Duty Head is not selected, the transaction will be listed as an exception in this category.
Solution
This exception can be resolved by defining the appropriate tax type and the duty head for the tax ledger.
To define the tax details
Press Enter on the transaction.
Select the Tax Type.
Select the Excise Duty Head.
The Uncertain Vouchers screen appears as below:
Press Enter.
Press Esc.
Click F6: Save.
Press Enter.
The modification made is saved, and the exception is resolved.
Note: Alternatively, click X: Exclude Vouchers from the Uncertain Vouchers screen to exclude the transaction.
Unable to determine Tariff details for Stock Item
Reason
If the tariff details for a stock item are not defined, the transactions in which the stock item is used will be categorised under Not able to determine Tariff details for Stock Item.
Solution
This exception can be resolved by defining excise tariff details like HSN code, Reporting unit of measure, and Valuation type.
To set the excise tariff details
Press Spacebar and select the transaction.
Click S: Set Tariff Details.
Define tariff details as shown below:
Press Enter.
The modification made is saved, and the exception is resolved.
Note: Alternatively, click X: Exclude Vouchers from the Uncertain Vouchers screen to exclude the transaction.
Unable to determine Excise Applicability
To resolve this exception
Press Enter on Unable to determine Excise Applicability.
Select the transaction. If same tax unit is applicable to multiple transactions, select the required transaction by pressing Spacebar.
Click E: Excise button.
Select the relevant Tax Unit from the List of Excise Tax Units.
Press Enter to accept it.
The modification made is saved, and the exception is resolved.
Note: Alternatively, click X: Exclude Vouchers from the Uncertain Vouchers screen to exclude the transaction.
To solve this exception
Press Enter on Mismatch in Excise Unit.
Press Enter on the transaction.
Select the stock item in the Voucher Alteration screen, and press Ctrl+Enter.
Select the same excise unit used for the transactions in the Godown Alteration screen.
Press Enter to save.
The modification made is saved, and the exception is resolved.
Note: Alternatively, click X: Exclude Vouchers from the Uncertain Vouchers screen to exclude the transaction.
Unable to determine Nature of Purchase
Reason
This exception will display the count of purchase transactions recorded with duty ledger predefined with Type of Duty/Tax as Others and selected in purchase entry without defining the nature of purchase.
Solution
If any transaction listed under this exception has to be excluded from this list without correcting the exception, press Spacebar to select the transaction and press Ctrl+E. The transaction will be moved to Excluded by User category of Excluded Transactions.
To solve this exception
Press Enter on Unable to determine the Nature of Purchase
Press Spacebar to select the transaction
If party ledgers of multiple transactions have to be allocated to same nature of purchase, select all of them using Spacebar
Click S: Set Nature of Purchase
Select the appropriate nature of purchase.
Press Enter.
The modification made is saved, and the exception is resolved.
Note: Alternatively, click X: Exclude Vouchers from the Uncertain Vouchers screen to exclude the transaction.
Unable to determine the Nature of Removal
Reason
This exception will display the count of transactions for which the nature of removal is not defined. The nature of removal has to fall in the category of Captive Consumption, Domestic, Exempt, Export, Export – Duty Chargeable, Removal as Such and Special rate.
Solution
If any transaction listed under this exception has to be excluded from this list without correcting the exception, press Spacebar to select the transaction and press Ctrl+E. The transaction will be moved to Excluded by User category of Excluded Transactions.
To solve this exception
Select Unable to determine the Nature of Removal, and press Enter.
Press Spacebar to select the transaction
If party ledgers of multiple transactions have to be allocated to same nature of removal, select all of them using Spacebar
Click S: Set Nature of Removal
Select the appropriate nature of removal.
Press Enter.
The modification made is saved, and the exception is resolved.
Note: Alternatively, click X: Exclude Vouchers from the Uncertain Vouchers screen to exclude the transaction.
Unable to determine Book Number in Voucher
To solve this exception
Press Enter on Unable to determine Book Number in Voucher.
Select the book from the List of Excise Books.
Press Enter.
Enter the serial number.
Press Enter to save.
The modification made is saved, and the exception is resolved.
Note: Alternatively, click X: Exclude Vouchers from the Uncertain Vouchers screen to exclude the transaction.
No duty ledger or notification number is available in the transaction
This exception will display the count of transactions for which the notification number is not defined.
To solve this exception
Select No duty ledger or notification number is available in the transaction, and press Enter.
Click S: Set Notification Number
Enter the details in the fields provided for Notification Number, Serial Number and select the Notification Type as Tariff/ Non Tariff.
Press Enter.
The modification made is saved, and the exception is resolved.
Note: Alternatively, click X: Exclude Vouchers from the Uncertain Vouchers screen to exclude the transaction.
This exception will appear for all Nature of Removal other than Special Rate for mismatch in,
Duty Rate, if the rate of duty configured in item master and provided in transaction are different
Assessable Value, wherein the duty amount against each duty head shown in the invoice is different
When the Nature of Removal is Export – Bond/LUT and SEZ – Bond/LUT and the transaction has different duty ledger with amount which is not ‘0’
This exception is applicable only for Home Clearance (Domestic, Captive Consumption - with duty), Export/Rebate, SEZ/Rebate were the duty is applicable.
If any transaction listed under this exception has to be excluded from this list without correcting the exception, press Spacebar to select the transaction and press Ctrl+E. The transaction will be moved to Excluded by User category of Excluded Transactions.
To solve this exception
Select Mismatch in tax amount, and press Enter.
Press Spacebar to select the transaction.
Click A: Accept as is button.
The modification made is saved, and the exception is resolved.
Or
Select Mismatch in tax amount, and press Enter.
Press Spacebar to select the transaction.
Change the Rate of Duty in the invoice to match it with the rate predefined in masters or at company level. For this:
Select the transaction and press Enter to view the Voucher Alteration screen.
Place the cursor on Amount field and press Enter to display the Excise Details screen.
Change the rate entered in the Rate of Duty field/column.
Press Ctrl+A to accept.
Note: Alternatively, click X: Exclude Vouchers from the Uncertain Vouchers screen to exclude the transaction.
Unable to determine Nature of Adjustment for journal entries
This exception displays the count of journal vouchers which has excise duty ledgers grouped under Excise with the Type of Duty/Tax set to Others.
If any transaction listed under this exception has to be excluded from this list without correcting the exception, press Spacebar to select the transaction and press Ctrl+E. The transaction will be moved to Excluded by User category of Excluded Transactions.
To solve this exception
Select Not able to determine Nature of Adjustment for Journal Entries, and press Enter.
Press Spacebar to select the transaction.
Click S: Set Nature of Adj. and select the nature of adjustment.
Press Enter.
The modification made is saved, and the exception is resolved.
Note: Alternatively, click X: Exclude Vouchers from the Uncertain Vouchers screen to exclude the transaction.
'Form ER 3 - Statistics of Vouchers (Excise for Manufacturer)' has been shared with
