In our Purchase oder we have a net amount for material on which excise duty.cenvat,E cess are paid during the budget check system makes check for the whole amount I want it shuld check only for the net value as the customer is getting modvat against these taxes.Even in commitments system is showing the Net value not the gross amount but runs the budgt on gross amount.
I made a try with exemption of cost alement but I cant select these cost elements as these are balance sheet Items.
Origin of Project costs lies in other modules. This means MM is sending you cost which includes deductible amounts also.
Pls get you Tax procedure checked by FI/MM. In Tax procedure there will be various Conditions used by your organization. Each Condition type will have an Account Key.
If that account key has 'Non Decutible' checked then the related tax amount will form cost on your project and vice versa.