reconcile er1 returns with trial balance/balancesheet, Central Excise

[Ramakrishnan Seshadri]

Dear Sir,

Could any one guide how to reconcile the er1 returns figure with the balance sheet sales figure.

What are the things to be taken for reconcilation.

Regards,

S.Ramakrishnan

Posts / Replies

[Madhukar N Hiregange]

You may have to prepare an excel template. It may include the following:

1. Value of goods removed but not sold

2. Value of goods sold but not removed [ maybe less]

3. Additions to value not included in sale

4. Value of exempted goods removed

5. Value of goods returned - credit availed under rule 16

6. Value of supplies to EOU/ SEZ/ Exported goods

Depending on the type of business a few more adjustments + or - would be there.

[Ramakrishnan Seshadri]

Dear Sir,

Not able to understand

Regards

S.Ramakrishnan

[Yatin Bhopi]

Now days EA-2000 auditors are asking ER-1 sales Vs annual accounts sales and Excise duty paid as per ER-1 Vs annual accounts. There is always difference in ER-1 sales and annual accounts sales due to various reasons and it varies  from business to business and also depend upon  accounting grouping in annual accounts.

For eg.1. If there is inter unit transfer of goods from unit A to B,  ER-1 of unit A will show sales but annual accounts will not reflect this amount as a sales  2. If there is transfer of goods to depot the value of goods will reflect in  ER-1 sales but same will not consider as a sale in annual accounts till its actual sale from depot. (you also have to consider sale from opening stock at depot)  3. Value of sale of scrap will reflect in ER-1 but same will be reflected in annual accounts in head "Other Income". 4. Trading sale is reflected in annual accounts but not in ER-1 5. Credit notes issue for discounts or rejection will not reflect in ER-1 but will in annual accounts etc.

As a said it is depend upon business to business, you have to consider those transaction which are not reflected in 'sales' in annual accounts but in ER-1 vise-a-varsa and also grouping of various sales.

[Naveed S]

Yes, very well answered..