Excise amount add in revenue & deducted as exp. seperately-Billing to COPA

[Former Member]

Dear Experts,

my client is adding excise amount on revenue and want to deduct it seperatly as expenses.

lets say revenue 12rs including 2rs excise

and same they want to charge it separately 2rs excise as expenses

Revenue 12rs

excise -2rs as expenses

Excise 5rs as liabilities a/c

I will link revenue condition type to revenue value field 12rs

For Excise-I will create P&L gl with 12 cost element category

Excise as liabilities a/c-Not flow to COPA

But what will be accounting entry in above process.how i will knock off my excise P&L a/c

what will be account entry for Balance sheet a/c excise and P&L a/c excise

regards

RR

[ajaycwa1981 · Accepted solution]

Hi Raman

I am really not clear as to this requirement.... You are adding excise expense as 2 rs and showing liability of 5 rs.. Whats the logic behind this??

I have seen companies where they show revenue inclusive of taxes and then deduct the taxes... But, you are saying 2 rs out of 12 is excise, but again showing 5 as liability....

Is it that you can bill only 3 rs out of 5 rs to the customer?? If yes, then use a discount condition type in SD pricing procedure... Map this condition type to a Catg 12 cost element and assign this Cond type to a Value Field in KE4I

The Accountin entry in that case would be

Customer ............... Dr 105

Excise expense .....Dr 5

Revenue.................Cr 100

Excise LIability........Cr 10

No question of knocking off The expense in that case because its your expense...

The liability of 5 rs will get paid as per the normal proces of CIN

br, Ajay M

[Former Member · Accepted solution]

Hi ajay,

How i will take care if company add excise amount in revenue.

I think below entry will passed

Billing

Customer 110rs including 10 rs excise

to Revenue 110rs

PGI-Excise entry

Cenvat clrg a/c dr 10

To Excise liab 10

Then how i will knock off my cenvat clrg a/c becoz cenvat clrg a/c amount is added in revenue.Not showing seperate line in billing.

regards

RR

[ajaycwa1981 · Accepted solution]

Hi

The acc entry you proposed is not correct... Revenue has to be 100 and Excise Liab has to be 10.. The customer will be liable for 110

In your Financial Statement Presentation you can show Gross Revenue as 110 and Less Taxes as 10 = Net Revenue 100

br, Ajay M

[Former Member · Accepted solution]

Hi ajay,

thanks for your reply

is it correct flow of entry

Biling

Customer dr 110

to revenue 100

to cenvat clrg 10

PGI

Cenvat clrg 10

To Excise liab 10

But if client want to add 10 rs excise as revenue.so revenue 110 less tax 10

How i will do it.becoz my revenue is showing 100 rs in above entry not 110rs

regards

RR

[ajaycwa1981 · Accepted solution]

Hi

Please try to understand that revenue is not 110 and it cannot be 110

You will fall into the excise trap and end up paying more excise

Revenue will be booked @ 100 ONLY and excise @ 10... You can manipulate in your report painter or BW reports by adding up both together

Hope this clears the air

br, Ajay M

[Former Member]

Dear Experts,

Request you to reply.

regards

RR