TAXINJ, export sales wrongly captures excise duty(BED,ECS,HECS)

[Former Member]

Hello All,

We use TAXINJ as our tax calculation procedure. The client had exported goods to Nepal via Exports under bond. As per law, exports from India are exempt from excise duty. But in one of transactions it had captured excise components(BED,ECS,SHECS).

The tax code used for UTXJ condition type was A0 which is Nil Excise and Nil sales Tax. None of these documents Sales order, Commercial Invoice and it's accounting document, Inter-company invoice and it's accounting document captured Excise duty which is in-line with standard behavior, so far so good.

The goods were exported from an exciseable plant but as exports from India are exempt from excise duty, the excise invoice(J1IIN) SHOULD NOT HAVE captured excise duty(BED,ECS,SHECS). 

1. My problem and my question is how on earth did the excise invoice (J1IIN) capture excise duty(BED,ECS,SHECS) when the reference document (intercompany invoice) didnot have any excise component and neither did Sales order or commercial invoice and it's accounting document.
2. When we execute J1IIN with reference to an invoice, should it not be similar to the reference doc (in terms of pricing and taxes).
3. Document change history(Environment-->Changes) is clean... nothing has been changed.

I would really appreciate your inputs on this.

Thanks.

[Lakshmipathi]

What is the Export Invoice Type you could see in J1IIN ??  As per your indication, it should have been Rebate.  If it is Bond or LUT, then the value would not be posted to FI.  Hope, you were talking about values flowing in FI only and not in J1IIN.

G. Lakshmipathi

[Former Member]

Hi All,

My apologies for the delay. Unfortunately, this has happened twice in the last month.

Therefore, posting my question again with details.

What is the Export Invoice Type you could see in J1IIN

The only thing that I can see there is "LOCAL"

Hope, you were talking about values flowing in FI only and not in J1IIN.

No, values are flowing both FI accounting document associated with J1IIN and the excise invoice too.

The pricing procedure assigned to Sales order, Commercial Invoice, Intercompany Invoice is same and doesnot

have Excise condition types in the pricing procedure JMOD(A/R Basic Excise Duty), JECS(A/R Education CESS),

JA1X(A/R Secondary&Hr ECS).

The only aberration that I noticed in document change history is that the intercompany invoice, based on which

Excise Invoice is created had a different tax code as on the date of creating intercompany invoice.

Now, please tell me how can the excise invoice(J1IIN) capture BED, ECS, SHESS when the pricing procedure does

not have excise condition types.