use of mrp indicator for capturing excise duties from dealer

8/11/2019 Use of Mrp Indicator for Capturing Excise Duties From Dealer

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Use of MRP indicator for capturing excise duties from dealer

By Anil Verma, KPIT Cummins

Scenario

While procuring from dealers, the dealer's inoicing amount is !no"n #ut the e$cise duties amount are not!no"n at the time of P% creation& The inoice price is ta!en as the P% price and the e$cise duties aren'tcalculated in the P%&

To capture the e$cise inoice corresponding to the incoming goods and to ta!e credit for the e$ciseduty component in the dealer's price, it is reuired to split the P% price into its t"o components ( the

excise base value and the excise duties amount.

In the transaction )*I+ or the transaction -I.% /in the e$cise item ta#0, the P% price defaults as thee$cise #ase alue& The e$cise duty components are displayed as 1ero since this is computed as 1ero&If the e$cise duty alue is manually changed and enter is pressed, the inserted alue disappears&

Solution

In order to change the e$cise duty alue and the e$cise #ase alue in )*I+ or in the transaction-I.% /in the e$cise item ta#0, "e must ma!e use of the -2P indicator&

Capturing excise invoice through MIGO transaction -

The -2P indicator can #e found #y clic!ing on the '-ore documents' #utton on the +$cise inoice ta#at the header leel& This pops up a screen containing the '-iscellaneous' ta#& This ta# contains achec! #o$ for -2P indicator& This -2P indicator chec!#o$ must #e tic!ed and then the e$cise #asealue and the e$cise duty alues can #e changed& Please note - the sum of the excise base and the excise duty values must always equal to the PO price. This is #ecause in this step, the P%

price is #eing diided into t"o components ( the e$cise #ase alue and the e$cise duty alue&

The goods aluation "ill change accordingly& The material account "ill #e de#ited "ith the e$cise #aseamount and not the total P% price amount&

Capturing excise invoice through J1IEX transaction -

The -2P indicator can #e found on the 3-iscellaneous4 5ta# at the header leel in )*I+ transaction&There is a chec!#o$ for the -2P indicator on this ta#& This -2P indicator chec!#o$ must #e tic!edand then the e$cise #ase alue and the e$cise duty alues can #e changed& Please note - the sumof the excise base and the excise duty values must always equal to the PO price. This is#ecause in this step, the P% price is #eing diided into t"o components ( the e$cise #ase alue and

the e$cise duty alue&

At the time of inoice erification, the #ase amount must #e entered as the changed e$cise #aseamount at the time of capturing the e$cise inoice, either thought )*I+ or -I.%& Then the ta$ can #ecalculated on this amount& This "ill sum to the P% price, "hich is the dealer's inoicing amount&

1. Create purchase order and enter net price /inclusie of #ase alue and e$cise duties0



6& +$cise duties not computed& /+$cise duties 7 80

9& Capture of e$cise inoice



(Capturing e$cise inoice together "ith goods receipt through transaction -I.%&

-2P indicator found in the -iscellaneous TAB popped up "hen you clic! on more data #utton on+$cise inoice ta# at the header leel in -I.%

The e$cise #ase alue is defaulted as the P% price and the e$cise duties are 1ero& The e$cise #ase ischanged such that the sum of the e$cise #ase alue and the e$cise duties remain the same as the P%price& The e$cise #ase is reduced #y the e$cise duty alue and the differential amount is split amongstthe releant e$cise duty components&



Changed alue&



:ence the material aluation also ta!es place correctly "ith the changed amount put as the e$cise#ase alue& %ther"ise the e$cise duty alue "ould incorrectly inflate this also&

9& Inoice erification process through -I2%

Accounting +ntries during -I2%&

use of mrp indicator for capturing excise duties from dealer

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