Advertisement charges with Excise

[Former Member]

Dear All,

Please suggest me about this scenario

For some sales promotion Dealer with agreement with Vendor does advertisement with media. Media sends bill to Vendor then Vendor pays this 100% amount immediately to media. After this Vendor distribute this whole amount in 50-50 it means 50% Vendor will pay and other 50% amount will be divide equally to all Dealers. But this invoice goes to Dealer with excise.

i am not getting how to map this scenario in system.

Thanks

Vijay Pratap Singh

+91-9650147457

[Lakshmipathi]

Ok from your first post, can you please rephrase the requirement. That is among Dealer, Vendor and your client, what is the role of your client.

Are they (your client)

a) advertise the products through dealer or

b) advertise the products through vendor

Nevertheless, as like factory sales, you can have follow the below process.

a) Have condition types for excise and the relevant Account Key assigned to that condition type in pricing procedure.

b) For this account key, assign the relevant G/L Account in OB40.

c) For this excise condition type, maintain the relevant tax code in FV11

d) Finally create a sale order, check for the outcome and update here

G. Lakshmipathi

[Former Member]

Dear Lakshipathi ji,

First of all am very sorry to giving late reply.

Actually Dealer are organized this advertisement with permission of My Client. So u suggested me to create the Sales order so i need to about Sales order type and what should be the Material or how can i treat this advertisement in sales order so that i can create debit memo against this sales order.

Please i have to configure now, waiting your valuable inputs.

Thanks

[Lakshmipathi]

Can you please reconfirm that it is tax or Excise ?? As you would be aware normally excise duty is involved when a dutiable product moves out of a manufacturing plant whereas, what you had described is a service related scenario where service tax is applicable and not duty.

G. Lakshmipathi

[Former Member]

Dear Laxmipathi ji,

Actually when Company pay that advertising amount it is with service tax but when it goes to dealers then it is with excise on that amount. This is Excise rule 4 to allow this excise has to pay by dealer.

please give some input.

Thanks