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Posted by NIREESH PH  May 7, 2014 Excise Duty Pass on Scenario – By Nireesh.P.H

Introduction:

Below depicts a typical dealer invoice scenario in India.

B is a dealer and purchase materials from its principal A by paying Base amount (say Rs 100 ) & Excise duty

(say BED 12%, Ecess 2% & SEcess 1%), comes to Rs 115 and applicable VAT (say 5%)on it . Thus landed

value comes to Rs 120.75. Again B sells this material to a manufacturer C for a base amount (say Rs 125) and

pass on the excise value he paid to A (Rs 15,ie Rs 125 + 15 =140) and applicable VAT (say 5%) on it. Thus

landed value comes to (Rs 140 + Rs 7 =147).

 

This document explains how C (manufacturer) can handle this scenario in SAP:

Scenario1: ED Set off & VAT inventory

1. Create a PO using T code ME21N

 

In the Gross price field input the value (Base amount (125) + Passed on ED value (15) = Rs 140). Input

applicable VAT tax code (inventory )under invoice tab.Tax code VB= VAT 5%

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Total landed value of the PO will be ( Gross price (Rs140) + VAT value( Rs 7) = Rs147)

2. Goods receipt using T code MIGO

 

Create Goods Receipt with reference to the PO, input details like, QTY, Storage location, Delivery note details,

Batch etc. Then click on Excise Tab and input, Excise invoice details and date.

 

If going for single step posting select Capture & Post. Otherwise select the option Capture and do the

posting in J1iex.

 

Click under Excise Invoice Tab

You will get the following screen and click on "Miscellaneous" tab and check the MRP indicator

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Under item details click on Excise item and

Base value will be populated from the PO.

Edit the base value manually as per the Excise invoice and input values against BED, ECS & SEcess

accordingly

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Post the document

Account Posting:

Excise Posting:

3. Invoice verification MIRO

Carry out invoice verification with reference to the PO

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Base amount (Rs 140 ) will be populated from PO, edit the value manually to value booked under stock of

materials during GR (Rs132, ie 125 +7). In header under Basic data, select any ED set off Tax code, input total

amount(Rs147) under Amount, ED value(Rs 15) under Tax amount. Input same Tax code in item level also.

Simulate & Save

Accounting document will be:

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Scenario2: If both Excise duty and VAT is set off then following method needs to be adopted:

  Create PO with VAT set off Tax code

During MIGO edit the base value and input appropriate values against BED, ECS & SEcess

Account Posting will be:

 

Here VAT value (Rs7) is not added to Stock value as it is SET OFF. Excise posting will be same :

 

During Invoice verification MIRO:

Edit the value manually to value booked under stock of materials during GR (Rs 125) In header under Basic

data, select any VAT set off Tax code, input total amount(Rs147) under Amount, VAT value(Rs 7) under Tax

amount. Input same Tax code in item level also.

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Select GL account Tab and put the GL code of ED(Centvat Clearing) and put any ED set off tax code and input

the the ED value (Rs15)

 

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Click the TAX Base tab and put the same value of tax amount in that

column

 

Simulate and save

Account Posting:

 

Looking Forward for your feedback and suggestions...........

 

Nireesh.P.H

1729 Views Tags: sap_erp_logistics_materials_management

NIREESH PH in response to Lakhya Pratim Baruah  on page 9 

Jul 31, 2014 6:40 AM

Dear Lakhya,

 

Here I have explained two scenarios and relevant strategy for Tax code was explained in the document,

however I am consolidating it once again

 

Scenario1: ED Set off & VAT inventory

•   PO-Input applicable VAT tax code (inventory )under invoice tab.Tax code VB= VAT 5%

• Excise Posting screen : We are inputting the value manually in MIGO, no relevance for taxcode, Tax code seen is the default tax code assigned to company code

• MIRO -select any ED set off Tax code,input total amount(Rs147) under Amount, EDvalue(Rs 15) under Tax amount. Input same Tax code in item level also. ie E8

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Scenario2: ED Set off & VAT set off

 

• PO -with VAT set off Tax code VF= VAT 5%

• MIRO -select any VAT set off Tax code, input total amount(Rs147) under Amount, VAT

value(Rs 7) under Tax amount. Input same Tax code(VF) in item level also.

• MIRO-Select GL account Tab and put the GL code of ED(Centvat Clearing) and put any ED set

  off tax code(E8) and input the the ED value (Rs15)

 

Regards

 

Nireesh

Lakhya Pratim Baruah in response to NIREESH PH  on page 9 

Jul 30, 2014 2:37 PM

Thanks Nireesh,

 

Also the tax code are different in each screen.

In PO - VB

In Excise Posting Screen - V0

In MIRO - VB, EB & VF.

 

I think you will need to rework on it a bit.

 

Don't mind buddy.

 

lakhya....

NIREESH PH in response to Lakhya Pratim Baruah  on page 11

Jul 30, 2014 10:54 AM

Hi Lakshya,

 

Tax code details-VB in FTXP

 

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J1ID- Vendor Excise Details

 

Hope this is fine

 

Regards

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Nireesh.P.H

Lakhya Pratim Baruah

Jul 30, 2014 7:08 AM

Hi Nireesh,

 

If you can add on the Tax Code VB condition type whether JMOP is made with 0% and further add how to

maintain J1ID for the Vendor - as a dealer. This doc will look good.

 

Regards,

Lakhya

k j in response to NIREESH PH  on page 11

Jul 16, 2014 5:09 PM

Tax base amount will be different than the actual on which tax calculated,

It doesn't matter whether you have filled tax manually or by clicking the calculate tax option,I did came across to this cases with my client Wrong Tax Base Amount in BSET table

I need to prepare one Zreport in which I have to fill this Tax base amount in front of tax code, to get the value of

tax calculated for document, which mismatches the actual

can you help on this matter is it the standard behavior or we are missing something

 

Thanks

Ragini sap

Jul 16, 2014 4:52 PM

HI,

 Keep it up...

manu m

Jul 15, 2014 10:44 AM

In Dealer scenario- We cant control / validate the excise number to post. Also the numbers needed to be

added manually.Is that correct or nay best practices adopted ?

NIREESH PH in response to k j  on page 11

Jul 15, 2014 8:19 AM

Yes, VAT base will show 125Rs in BSET, but we are inputing the VAT value manually as Rs 7 and remove

the calculate Tax tick. So correct value will be posted to Tax G/L.even though Tax base will be 125. Our final

objective of adding 125 to material cost and keeping ED & VAT value set off (under different G/L) is achieved.

 

Pls comment,any other unforseen impact?

 

Thanks

Nireesh

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k j

Jul 15, 2014 6:40 AM

Hi

If you go to the Table BSET, check the tax base amount for the vat condition,

it will show 125 Rs, but ideally it should be (125+15) Rs= 140 Rs

Can you please elaborate on the above issue, how the tax base amount fills in table

Thanks