Excise Duty Calculation on Depot for Trading Material

[Former Member]

Hi,

Following are the details about my client requirement:

1. My client has a depot plant dealing with trading material and no manufacturing activity.

2. Present Scenario:

Material Purchase price: 100

Excise Duty: 14

Sec E.D: 2

Hr.Sec E.D: 1

Material Sales Price: 200

Excise Duty: 28

Sec E.D: 4

Hr.Sec E.D: 2

3. Expected Scenario:

Material Purchase price: 100

Excise Duty: 14

Sec E.D: 2

Hr.Sec E.D: 1

Material Sales Price: 200

Excise Duty: 14

Sec E.D: 2

Hr.Sec E.D: 1

For the above the price will be changed at a Condition record level.

There are no standard functionality available in standard SAP kindly advice on some workaround for the above requirement.

Thanks in advance.

Madhan

[Former Member]

Hi Prakash & Sandip,

Let me thank you for the response. The excise calculation as pointed by you is right. For material price of 100 (BED = 14; SE Cess = 0.28 & Hr.Sec Edu Cess = 0.14).

Now my query is when there is a Material price increase in case of trading material Which is 200 (BED = 28; SE Cess = 0.56 & Hr,Sec Cess = 0.28). Presently system calculates Excise duty on 200.

Since it is a trading material there is no value addition to the material Excise duty should calculate on Rs. 100.

Is there any workaround available?

Thanks & Regards

Madhan Kumar

[Lakshmipathi]

Dear Madhan

Yes it is possible.

Have the condition type AR00 as your assessable value and maintain Rs.100 in VK11. In your pricing procedure include this AR00 and assign the step no. of AR00 to JMOD in "From-To" tabs. Now your excise duty will be calculated based on AR00 value

thanks

G. Lakshmipathi

[Former Member]

Dear Madhan,

Kindley inform you that on trading material excise not applicable. Because excise is only applicable on which plant manufacture the product and trading product not manufacture in plant. It is transfer from another manufacturing plant.

Regards,

Sandip Shaktavat

[jpfriends079]

In what way ur client is calculates excise duty?

As per my knowlegde, excise calulation happens in following way:

1. Basic Price of the Material = Rs. 100.00/-

2. B.E.D. (14% of 1., i.e., 14% of 100) = Rs. 14.00/-

3. CESS (2% of 2., i.e., 2% of 14) = Rs. 0.28/-

4. H. Edu. CESS (1% of 2., i.e., 1% of 14) = Rs. 0.14/-

5. Total Price of the Material after E.D. = Rs. 114.42/-

Correct me if I'm wrong or reward me points.