Excise credit avail for Input materials
Excise duties are duties that the state (central when it comes to country like India) imposes as taxes on the use or consumption of certain goods. The liability to pay taxes is incurred when taxable goods are moved under customs seal from a location to a taxable location.
In India Excise values are defined under Chapter ID .Chapter ID group together a class of materials which has a unique Excise values. e.g.- Chapter 30is for Pharmaceutical products (India )
There are certain pre requisites to avail excise for input materials
Excisable goods refer to those Goods which have following characteristics.
– The goods should be MOVABLE. (no duty on immovable goods).
– The goods should be MARKETABLE (capable of being bought and sold).
– The goods should arise out of MANUFACTURING process.
– The goods should be MENTIONED in the Central Excise Tariff Act (eg. chapter ID in india scenario ).
- The manufacturer or producer of final products shall be allowed to take CENVAT credit of the duty paid on inputs lying in stock or in process or inputs contained in the final products lying in stock on the date on which any goods cease to be exempted goods or any goods become excisable.
Plant need to have Excise Registration
Vendor need to have Excise registration. ECC number in case of India and ECC is a legal number and under Revenue dept. of India
If any of the above are not satisfied the Plant will take the excise values are added to stock while doing the Goods receipt.
Thinking: If you closely observe you will find why a raw material, asset, etc. have excise implication and a consumables wont.
Excise related procurement processes
Excise Invoice can be captured/ posted for the following scenarios in SAP
- Excise Invoice Capture for a Purchase Order / Scheduling Agreement / Contracts
- Excise Invoice Capture for a Goods Receipt
- Excise Invoice Capture for imports Purchase Order
- Excise Invoice Capture without Purchase Order
- Excise Invoice Capture for a Stock Transport Order
The below scenario will explain in Sap how/ when an excise is captured and posted.
- Ø Capture Excise values in J1iex , ref vendor inv no
- Ø Goods receipt in MIGO, ref PO. GR will update part 1
- Ø Post Excise values, Internal no generated at the time of Capture. Post will update part 2
- Ø Goods receipt and capture at Migo. The Part1 is created
- Ø Post the excise in J1iex. Part 2 is updated. The ref we give is internal number at Int. no generated at the time of capture.
- Ø Goods receipt with capture and post of Excise
The above are for GR and Excise capture with PO available. The Excise capture w/o PO, Inbound delivery, and sch. agreement etc. are can be done in T code J1iex.
The screen shot below will gives a heads up of all in one page for the activities listed above.