Excise on Net and VAT on Net plus margin

Question

Hi.
We purchase some material from a vendor. This vendor in turn is an intermediary who purchases it  from a manufacturer.
The Manufacturer sells this material to vendor at say Rs. 100/- + ED of 8%. The vendor adds a margin of Rs. 40 to it, making the price 100 + 8 + 40 = 148/-.
Now the vendor sells it to us at 148 + 12% VAT i.e. 148 + 17.76 = 165.76 /-
How do we map this scenario in SAP to claim CENVAT ? Because tax calculations are based on Net price. So even if I put a Net price of say Rs.100, the ED will be calculated correctly as Rs.8/-. But the VAT (which is deductible) will also get calculated on 108/-.
How do we make the system calculate VAT on 148/- ?

Answer 1

Hi,
Assumptions : Material price (inclusive of ED )                 :  148.00
                           VAT  (Deductible) @ 12%                      :  17.76
Amount Payable to Vendor                       :  165.76
Actual Excise Invoice received for amount                   :  8
Amount to be loaded on Inventory                        :  140
1   While creation of PO for such cases maintain the u201CZerou201D tax code u2013 usually V0. Also do not forget to tick mark GR based IV.
2.  While doing GR through MIGO, enter the actual Excise duty  in the respective cells of Excise Tab in Item details. Also ensure to change the Base value to [PO value u2013 (ED)].
3.In the Excise Header Tab maintain Excise Invoice No. and  Date & Check on MRP Indicator. This check ensures that the value going on inventory is after deducting the Excise Duty .
4.In MIRO Screen, change the Amount to the Base Amount.
5.Ensure that the Calculate tax Indicator is checked and the value populated in Tax Amount is = ED maintained in GR + Vat maintained in PO(thru Condition record).
Regards,
Shailesh Mackwan