excise mm domestic

7/25/2019 EXCISE MM Domestic

1/29

MM - Excise - DomesticMM - Excise - Domestic


2/29

Excise - MM - Domestic 2

Basics

Excise and Service tax are central government revenues. The following duties are leviable under excise.

- Basic Excise Duty BED!

- Education "ess E"ESS!

- #igher Education "ess #E"ess!

$ver the years many ty%e of taxes have been introduced. Theabove are a%%licable in the year &''(-&'').


3/29


Basics

*t the time of %urchase+ a com%any is entitled to ta,e credit ofthe excise duties it has %aid.

*t the time of sales+ the excise duties are charged to thecustomer.

The net difference between the excise credit at %urchase! andexcise debit at sales! is to be %aid to the government.

t is reuired that se%arate accounts are maintained for each ofthe levies+ so that utili/ation can be shown to the authorities.

Excise may be a%%licable for certain %roducts+ while for some itmay not be so. These are determined by the government from timeto time.

The rates of duties+ a%%licable is also determined by thegovernment from time to time.


4/29


Basics

The following registers are to be maintained for excisedetermination.

01&2* 3 %art 4 3 uantity %osting for raw material items.

01&2* 3 %art & 3 value %osting for raw material value

01&2" 3 %art 4 3 uantity %osting for ca%ital items

01&2" 3 %art & 3 value %osting for ca%ital items 014 3 0egister for finished goods

n S*5+ the %art 4 %osting has to be com%leted first before+ %art& can be %osted. 5art 4 %osting is done on the basis of the material

document created at the time of 10.


5/29


Basics

$nce the %urchase and sales documents are %osted+ then %rogramsare run to u%date the various excise registers.

The monthly utili/ation %rogram is run+ to determine the %ayout tothe government.

* se%arate account called 56* will be credited with amount forma,ing %ayouts. The %ayout is determined through the T07 challan.


6/29


5$ "reation 8 Tax "ode *ssignment

"reate 5urchase order ME&49! and release ME&:9!.

*ssign the relevant tax code for excise and sales tax %rocessing. t isthe tax code which determine+ what taxes are a%%licable. Since this is amanual selection+ this has to be done %erfectly+ for excise details toflow in the system.


7/29


5$ "reation 8 Tax "ode *ssignment

"lic, the taxes button on the invoice tab to view the tax details.

The tax code ;& has BED 47< "nTy =M$4!+ E"ESS &< "nTy =E"4!+and #E"ess 4< "nTy =*4S!.

The taxes are calculated automatically by the system+ which are usedat the time of 10 and invoice %osting.

Since+ these are ta,en credit for+ these cannot be inventori/ed+ i.e.+ itwill not become %art of the item cost.


8/29


Ma,e all the uantity entries in M1$.

Select $> and chec,. The excise tab will a%%ear. Enter the excise invoice numberand date. The status is ?'4 "a%ture and 5ost Excise nvoice@ which indicatesautomatic %osting. Save the document to create the excise invoice.

Both the %art 4 and %art & entries are %assed at the same time by the system.This can be used when the 10 %erson himself clears the excise document.

Method 4 A *utomatic %osting of excise invoice at thetime of 10

The excise values being %osted areshown here


9/29


6et us loo, at the accounting %ostings. 1oto M1$ 3 Dis%lay mode 3 material

document number 3 excise invoice tab. rom the detail screen as in 4!+ double clic, accounting document+ which will

show the accounting entry view as in &!


&

4


10/29


*s the item is a raw material+ the excise is %osted to the 01&2* accounts. f it

were a ca%ital item+ it would have been %osted to the 01&2" accounts.



11/29


n the excise invoice tab+ choose ?5art 4@. The amount details shown

immediately vanish. 5ost and 9ote the document number generated. *t this %oint of time only the uantity has been %osted+ which is the

%art 4 %art. The value %osting is done through transaction =4iEC.

5art & %osting is done with reference to the material document. "hoose?"a%ture Excise nvoice@+ ?Material Document 9umber@.

Method & A 5art 4 at the time of 10+ %art & se%arately


12/29


*t this %oint of time only the uantity has been %osted+ which is the

%art 4 %art. 0un TC9 =4iEC with selections as ca%ture excise invoice and goods

recei%t. 1ive the 10 document number and enter.

n the following screen give the excise invoice number and documentdate. Document date cannot be lesser than 10 date.



13/29


The following details are shown in the res%ective tabs.


4

&

2

4. Duty rates

&. Duty values editable if reuired!

2. 5art 4+ details


14/29


Give the excise invoice number an ate! "hen c#ic$ chec$ to chec$ i% a## the

etai#s are &oste! "hen c#ic$ simu#ate cenvat button 'in%o in next s#ie(!



15/29


)#ic$ the simu#ate button to chec$ i% the

a## the accounts are *enerate in the

entr+ an a#so the amounts that are

&oste! )#ic$ &ost invoice to &ost the

ocument! "he %o##o,in* isa+ ,i## be

*enerate b+ the s+stem!


$n %osting$n simulation

"hoose dis%lay in =4iexto view the %osteddocument.


16/29


ollow the %rocedure to ma,e the 10 and come to the excise tab. n

the Excise tab choose ?9o Excise Entry@ and %ost the document. 9otethe document number generated.

0un Transaction =4i to first ma,e the %art 4 entry.

*fter+ this through =4iEC+ we have to ca%ture the invoice and %ost+which is the %rocess followed in method &.

Method 2+ can be followed where+ the inventory %erson be not botheredwith the excise details. #is only reuirement+ is to inward the goods. *llthe other activities are done by the excise %erson.

Method 2 A $nly 10+ 5art 4 8 %art & se%arately


17/29


un transaction .1i5!Give the etai#s as sho,n! Give

the materia# ocument number

%or /uic$ &rocessin*!



18/29



"he items re#evant are isa+e as sho,n be#o,! e#ect the items an c#ic$ the simu#ate

button!

imu#ate

nce simu#ate the icon sho,n *reen co#or! e#ect the item a*ain an then c#ic$ create!

)reate button


19/29



*fter creation the document will vanish from the screen and thefollowing will be dis%layed if all documents listed %reviously were%rocessed. This com%letes the %art 4 %osting.

9ow+ %rocess TC9 =4iex. "hoose ca%ture excise invoice and selectgoods recei%t. 1ive the material document number and %ress enter. Thesystem lists the items in the material document. The following are the

screen shot of the excise invoice.


20/29



ave the ocument to &ost the &art 2! "he same &roceure a&ies %or ca&ita# *oos!


21/29



$n saving the following information is dis%layed by the system.


22/29


"ancellation 0eversal of excise documents

0eturn of material to vendor

Ma,e the return through 4&& movement.

9ote the material document number.

Through TC9 =4iS %rocess the returns material document to %ost

to excise. This excise invoice can be sent to the vendor along withthe document.


23/29



eturn o% materia# to venor

Give M


24/29



o, run " .1is! "hen c#ic$ on create!


25/29



o, run " .1is! "hen c#ic$ on create!

Enter et ssessab#e va#ue manua##+! "his is e/ua#

to the basic &rice o% the item!

ext *ive the tax &ercenta*es manua##+ an c#ic$

enter! +stem ,i## as$ %or reca#cu#ation! a+ +es toca#cu#ate!

ost the ocument! "his shou# a&&ear in .2iun


26/29



o, run " .1iv or in .1is screen c#ic$ &ost Excise nvoice as in %i*ure be#o, ,hich ,i## ta$e

+ou to .1iv "xn screen!

Give the excise ocument interna# number an the ocument +ear an

c#ic$ on re#ease to accountin*!


27/29



Give the &ostin* ate an &re-&rinte excise invoice number i% an+ an c#ic$ save! "he excise

&ortion a#on* ,ith &ostin* to various re*isters are isa+e!

n avin*


28/29


Fiewing the financial documents

"he ocument &oste can be seen in "xn 03! rocee as sho,n be#o,

)#ic$ ocument #ist an the screen

to the ri*ht is isa+e! Enter the

etai#s as sho,n! "he ocument

t+&e %or excise re#ate &ostin*s is

ED


29/29


Fiewing the financial documents

:ie, o% excise ocuments &oste in 03 "xn

.1iex ; ca&ture excise

invoice se&arate#+

MG ; automatic &ostin*

o% excise invoice

.1iv ; returns &ostin*

.1ih ; a

excise mm domestic

Documents