Problem related to Accounting entry against billing document

[Former Member]

Dear all,

I had one scenario in which suppose base price for sale for a material is Rs.100 & excise duty 8.24%(8%2%1%) ,

then subtotal= 100+8.24= 108.24 & I have to give customer discount(condition type-K007) on total excise duty i.e Rs. .8.24. then Gross amount receivable from customer is 108.24-8.24=Rs.100

I have created pricing procedure as per scenario, but after posting billing document, accounting entry shows

Rs. 108.24 to G/L account SundryDebtors (Reco) - Domestic(amount receivable from customer). Actyually I want it should be RS. 100/- considering customer discount.

All other entries related to excise duty are ok (Cenvat suspense)

How to get this?plz. guide me.

[Former Member · Accepted solution]

Dear Mukesh,

Kindly whether accounting entries are properly mapped.....I think entries are not getting posted to accounting correctly

Take the help of FI consultant

Sagar

[Former Member · Accepted solution]

Dear Sagar,

Thanks for advice, but there is no FI consultant in my company ....so can u provide me step by step guidanace to resolve this problem?

[Former Member]

My problem is not yet resolved, any help in this regard will be appreciated.

Thanks & Regards,

Mukesh

[Former Member]

Dear Mukesh,

If the customer needs exice exemption please do the following

1)Make a access sequence for UTXJ condition as country/Region of deleivering plant/Region of ship to party/Tax classification of customer/Tax calssification of material/ Condition group 1

2) Maintain Condition group 1 in IMG/Logistics -general/Bussiness partner/customers/control/condition group. Maintain the form types for eg.01 as C-form, 02 as Excemption certificate.

3) While creating the sales order maintain this form types at header level in additional data for

4)Create a Tax code in which excise duty is to be NIL i.e In fv11 for JMOD condition maintain this Tax code as NIL tax

5)Maintain the condition record for thr access sequence created (step-1)

then exise wont be calculated in the pricing.

Regards,

Nirmal

[Former Member]

Dear Sir

Is it the first time you are facing the problem, If you have any docs posted previously where in accounting entries were been properly framed where it has been hitting different G/L s

Please let us know about this

Regards

Consultant SD

[Former Member]

Hi Mukesh,

As Mr. Laxmi rightly said, 108.24 value should be posted to 2 separate GL accounts, 1 for Customer debit and other is for Excise duty. This is so because, for excise purpose, you need to pass 8.24 amounts to Excise GL accounts only (Requirement may differ with various clients to post both the amounts to same GL account).

Create a sub total for total Excise duty which reflects only summation of all Excise duties (Basic Exc. dutyE Cess S E Cess).

Now maintain a copy of this total excise duty with new discount condition type. Thus Excise duty values will be captured in this discount condition type and assign an account tkey to post to discount GL account.

Hope this would resolve ur issue.

Regards,

Praveen.

[Former Member]

Dear Praveen,

My client is having plant in Pune & also in SEZ.He needs to apply excise duty from Pune plant, because whatever material going to dispatch to SEZ plant, is purchase from vendor at Pune & whatever excise duty applied by Vendor, same amount excise credit is taken at Pune Plant & same excise duty is applied on sales invoice, so that excise return part at Pune will have no issue. As there is no facility to take excise credit at SEZ plant on sales invoice delivered from Pune plant ,my client at Pune gives customer discount against excise duty charged.So gross amount will be equal to net amount..

I think this will give you clear understanding, why excise duty & discount is needed to apply.At present excise invoice & sales register showing correct values against customer, but accounting entry against billing document shows customer receivable amount as Rs.108.24(inclusive amount with excise duty). I need accounting entry against customer receivable should be Rs. 100/-

Thanks & Regards,

Mukesh Pardeshi.

[Lakshmipathi]

Can you please let me know whether the whole amount (Rs.108.24) is getting debited to one G/L Account ?? It should have been for two G/L Accounts. One for customer debit and another for excise duty. As you would be aware G/L Accounts would be created in FS00.

thanks

G. Lakshmipathi

[Former Member]

DearG. Lakshmipathi,

Plz. find accounting entry against billing doc.at present, is as follows.

G/L ACCOUNT NAME Posting Key Account Description Amount Company code

230010 OTHER DT-DOM-RECO 01 R2004 RTS PVT. LTD. 108.24 2000

20007 Sales Cons. & Misc. 50 20007 Sales Cons. & Misc. 100.00-

10004 Cenvat suspense 50 10004 Cenvat suspense 8.00 -

10004 Cenvat suspense 50 10004 Cenvat suspense 0.16 -

10004 Cenvat suspense 50 10004 Cenvat suspense 0.08 -

& accounting entry against excise invoice is as follows.

G/L ACCOUNT NAME Posting Key Account Description Amount Company code

10004 Cenvat suspense 40 10004 Cenvat suspense 8.24 2000

10045 SECESS PAYBLE(SALE) 50 10045 SECESS PAYBLE(SALE) 0.08 -

10008 BED PAYBLE(SALE) 50 10008 BED PAYBLE(SALE) 8.00 -

10025 ECS PAYBLE(SALE) 50 10025 ECS PAYBLE(SALE) 0.16 -

My client gives customer discount against excise duty value (8.24%), as customer is in excise exempt zone(Uttaranchal) & there is no provision to take excise credit against my client"s sales invoice.

so my client wants accounting entry against billing document as follows.

G/L ACCOUNT NAME Posting Key Account Description Amount Company code

230010 OTHER DT-DOM-RECO 01 R2004 RTS PVT. LTD. 100.00 2000

How to resolve this?

Thanks & Regards,

Mukesh Pardeshi

[Former Member]

Hi,

Correct me if I am wrong...

Ur customer belongs to SEZ and there is no need of including Excise duties in customer invoice. This is not the discount u r providing to ur customer, but your are selling material to specific region which have Excise duties exemption. This sales will carry with certain Exemption forms and hence no need to raise an excise invoice.

In this case, you require a new pricing procedure specific to SEZ, which do not have any excise duty condition types and process as normal sales, but include exemption form details.

Regards,

Praveen,