Excise determination procedures

Question

Which of the following excise procedures are best and being used by thevcompanies:
1. condition-based excise determination
2. formula-based excise determination
Which one has the advantage over the other?
Regards
VS

Answer 1

Hi VS,
In Condition based excise determination, When you create a purchase order, the  System automatically calculates the applicable excise duties using the condition technique. We need to Create condition records for all excise duties that apply, and enter the tax code for condition-based excise determination.
    When you enter a purchase order or other purchasing document, enter the tax code for condition-based excise determination in each line item. The system then calculates the excise duties using the condition records you have created. When the ordered materials arrive, you post the goods receipt and the excise invoice. The system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice.
In the case of Formula based excise determination In order the system  able to determine which rate of excise duty to apply, you must maintain all the data on the Excise Rate Maintenance screen. We need to maintain data such as plant master data, vendor master data, customer master data and material master data. When you post the system automatically determines the rate of excise duty as follows:
It Looks up the customer master data to see what status you have assigned the customer then it looks up the plant master data to see what status you have assigned the plant. Based on that it finds the final excise duty indicator set for the above combination. The system determines the chapter ID of the material for the plant. Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID  under status found the above combination.
TAXINN  only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise determination.   Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable. So based on the above we can decide which is advantage for our business process.
Hope this helps.
regards
Anand.C