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

Question

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

Answer 1

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