Excise & taxes in Third Party

Hi,
How can we handle Excise & taxes in case of Third party Senerio.
for both The case of Third party (with Notification & w/o notification).
Regards
Pavan

Hi
In case f third party PO's only the goods processing & delivery is differing when compred to the Standard PO process.
So all the taxes will be appluicable as you have performed for a Standard PO
The goods receipt has the same effect as a goods receipt for a purchase order with account assignment:
No stock update is made, as the goods receipt is posted to consumption
The value of the purchase order is posted to a GR/IR clearing account for the purposes of Invoice Verification.
The goods receipt can be tracked in the PO history.
You enter the invoice in the same way as an invoice for a standard purchase order.
If you posted a statistical goods receipt for the purchase order, the invoice receipt results in an offsetting entry on the GR/IR clearing account, which is cleared.
If the customer is to be billed in Sales and Distribution based on the invoice quantity specified in the vendor invoice, this quantity is used as the basis for the billing document in Sales and Distribution. The billing document can only be posted once the vendor invoice has been posted.
Thanks & Regards
Kishore

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Taxes in Third Party Scenario

Dear All,
Whether taxes (such as Excise & VAT/CST) are applicable in case of third party POs??
Also what will be impact of excise & taxes during the time of MIGO & MIRO ??
If anyone can send the accounting entries at the time of MIGO & MIRO it will be very useful.
Thanks & Regards,

Hi
In case f third party PO's only the goods processing & delivery is differing when compred to the Standard PO process.
So all the taxes will be appluicable as you have performed for a Standard PO
The goods receipt has the same effect as a goods receipt for a purchase order with account assignment:
No stock update is made, as the goods receipt is posted to consumption
The value of the purchase order is posted to a GR/IR clearing account for the purposes of Invoice Verification.
The goods receipt can be tracked in the PO history.
You enter the invoice in the same way as an invoice for a standard purchase order.
If you posted a statistical goods receipt for the purchase order, the invoice receipt results in an offsetting entry on the GR/IR clearing account, which is cleared.
If the customer is to be billed in Sales and Distribution based on the invoice quantity specified in the vendor invoice, this quantity is used as the basis for the billing document in Sales and Distribution. The billing document can only be posted once the vendor invoice has been posted.
Thanks & Regards
Kishore

Tax determination third party process

Hi all,
I need to re-determined taxes during invoice creation for a third party sales flow.
To explain the case:
SO: company 1000 Country XX
PO: company 1000 Departure country YY
Invoice SO: tax determination as:
Departure country YY
Arrival county XX
At the moment the SAP consider as deaprture country XX and not YY.
In which way the system can consider as departure country the country of the vendor and not the one of the sales organization?
Let me know if you need further information.
Thank you in advance,
Manuele

While Tax determinations--any way you are going to take the region of the delivering plant(not sales org)
If you maintain tax classifications for customer and Material--maintain the Tax rates which will take care of Tax in sales order.
Any way your vendor will bill to you not to customer--So if you follow the first Two points--which will take care of Tax.
I think coding corrections here--may not be suggestible.
Pl update.
Phanikumar

Tax issue third-party process (departure country)

Hi,
maybe someone can help for this case.
For sales org 1000 (country SG), we create a sales order for a foreign customer (e.g. KR) with a third-party purchasing (from country TH) with direct shippment.
Now, if I look into the departure country, it is SG because the plant of the item is also located in SG. But the fact is, that a third-party purchase is done and shouldn't be the departure country like in the example be KR?
Thank oyu for any help!
Besr Regards,
Florian

The determination is clear and no problem.
The case is a 3rd party purchase from a foreign supplier with direct shippment to a foreign customer. Here the plant on item level is always the local one, but the departure country of the goods are the country of the supplier.
The question is, how this can be done in SAP to determine the taxes based on the departure country of the items supplier.
Best Regards,
Florian

Employee Vendor and Third Party Vendor Posting Issue

Dear Experts,
I have an issue while Posting of Employee Vendor and Third Party Vendor.
In T706K table, maintained symbolic account offset entry MJ90 Wage Type but its asking for Symbolic Exp account too. Otherwise, while posting its says Trip has no postable entries.
I should get entry in FB03 as mentioned below
Employee Vendor (Dr)
Service Tax (Dr)
Third Party Vendor (Cr)
Awaiting for quick response.
Regards
Shaik

Hi Sieg,
Thanks for your reply.
Company has given Forex advance to employee via third party vendor
So, We need to debit the amount into Employee Vendor and Credit into Third Party Vendor
For Ex: Third Party Vendor is Thomas Cook (Forex Provider)
Please guide me how to post the above entry in Standard.
Regards
Shaik

Third Party Vendor - Start Up

We are starting to use third party vendors and payroll has been running for a year.
Is there a way to pay 2009 first quarter taxes using third party vendors without payting the benefit vendors, other vendors, or garnishment vendors?
I tried to run the evaluation run only for one HR Payee type, but the production run will only allow me to run all HR Payee types.
I then thought I could only create a posting run for the tax HR payee (vendors) post the document into FI via PCP0, then run it for the other HR payees and delete the batches for the FI posting in PCP0. However, when I delete the FI postings, it puts the information back into the posting bucket (so later when I really want to pay the other HR payees, I will pick up those to pay). So, that idea did not work.
Thansk,

Hai..
There are certain deductions like say for Ex.. Garnishments where the total amount deducted from the employee is not directly posted to vendor's account small part of the amount goes to employers as service charge...
so in this case the total deduction amount will be reflected from the EE. But will not be reflected in the Vendor..
Kindly make sure if 100% of the deduction is being credited to vendors account.. to aviod inconsistencies...
Manohar

Tax & Excise in Third Party Sales

Hi Friends,
As per Std.SAP in third party Sales Scenario a PR will be automatically created when we save the SO & out of that we create a PO.
Now kindly provide clarifications for the below query's
1. When we create a PO with respect to this PR (Is taxes & excise applicable) ?
2. How we have to maintain this Third Party Material in J1ID inorder to determine the excise rates for Calculation?
3. As per this Scenario our Vendor will deliver the goods to our customer & we will do a Statistical GR which will post to the consumption & GR/IR clearing accounts. Now what will the impact in Excise side as our material in the PO is subjected to excise?
4. Do we take the Cenvat credit as in case of Raw materials??
Since I am not clear in the excise & taxes part of this Scenario. Please help me..
Regards,

Excise Duty: Excise Duty is applicable only in an manufacturing scenario in India. I will illustrate with sone examples, as under:
Example 1:
Sales from Plant 'A', material 'B' (manufactured product) to Customer 'XYZ'.
Customer XYZ orders material 'B', which is supplied from plant 'A', say quantity 1. Sale Base Value is Rs. 100/-, Basic Excise Duty 10%, Education Cess 2%, Higher Education Cess 1%, Vat 12.5%
(Excise Duty will be applicable and reflect as a separate component in above scenario)
Example 2:
Stock Transfer from Plant 'A', material 'B' (manufactured product) to Plant 'D'.
Plant 'D' has a requirement for material 'B', which is supplied from plant 'A', say quantity 1. Assessable Value is Rs. 80/-, Basic Excise Duty 10%, Education Cess 2%, Higher Education Cess 1%
(Excise Duty will be applicable and reflect as a separate component, but Vat will not be applicable in above scenario)
Example 3:
Sales from Plant 'A', material 'B' (Trading product) to Customer 'XYZ'.
Customer XYZ orders material 'B', which is supplied from plant 'A', say quantity 1. Sale Base Value is Rs. 120/-, Vat 12.5%
(Excise Duty will not be applicable in above scenario)
Regards,
Rajesh Banka

InIN THIRD PARTY PROCESS EXCISE PROCESS

Dear Experts,
In Third party process, sales order raised,po created to vendor,migo created,invoice made to the vendor.
po we made 14% bed,2%ecess&1%secess,after miro what is the process in excise,where the link vendor invoice and customer billing.please explain
Reagards,
V.Ramakrishnaparamahamsa

Hi,
Thanks for the above reply.
I am also into the scenario hence I am posting my query as a reply to this thread.
Do you mean to Create a tax code & to maintain the rates for inventorised condition types (Non deductible)
also taxes (VAT/CST) to be calculated on the above??
Regards,

Excise in third party scenario

Hi
In third party scenario as we will not delivery the goods to the customer but we invoice the customer,So in this case how will we send the excise document to customer.
As the delivery is not available in the system.
Is this through J1IH.
Please can any one let us know the process which need to be follwed.
Thanks alot.
Regards,
Kumar

Dear Friend,
From your reply, order related billing and vendor sends invoice to you. and then you generate the Customer Invoice against the Vendor invoice and mention the duties being paid by Vendor. (Vendor need to pay the excise duties when he delivered the goods to customer and the same can send
Instead of raising the Excise invoice to the customer, you can raise debit note for the amount he is supposed to pay (based on the vendor sent invoice).
As per Indian tax system, Excise duty (16%) is payable by each manufacturing unit on the value of manufactured goods / on the value added,here in your case you are not the manufaturer.
Please note that it is "NOT POSSIBLE" to create a excise invoice for order related billing in J1IIN transacton.
Normally excise invoice is created when there is a goods movement. J1IIN transaction is programmed in such a way
it will check the delivery document when you enter the billing document to create the excise invoice.
Regards
AJIT K SINGH

Third party excise flow

Hi gurus,
I want to know the tax flow BED, CESS, SHces, CST/VAT in third party scenario, can anybody explain the process flow.
Thanks in advance.
Edited by: Emerson Praveen on Nov 19, 2008 12:37 PM...
Edited by: Emerson Praveen on Nov 19, 2008 12:38 PM

It is ideally recommended that Manual change be allowed to Excise Condition Type, such as BED, CESS, SHces Based on the exact value of Excise Duty being paid to Excise amount should be manually maintained.
In the case of CST/VAT, based on Condition record (T.Code: VK11), VAT/CST can be captured.
Regards,
Rajesh Banka

Third party Excise capturing

Dear All,
How to cature Third Party Excise.
Deatailed Scenario.
My client raises a purchase order for a material X and give it to a vendor(trader).Trader doesn't produce that materail ;he ask another manufacturer to supply material X directlly to my client with pass on duties.
My requirement is
1) How to capture this pass on duties( received from manufacturer who is not direct vendor) and same should be reduced from material cost
Thanks in advance

hi
This is Traders pass-on scenario.
E.g.:
Material Price = 80/-
Excise Duty = 14/- (BEDECessSECess)
Margin = 6/-
Total =100/-
VAT @3% = 3/-
Grand Total =103/-
Step 1:
Create PO with Base Price as 100/- by selecting tax code which is having VAT as 3% (Total PO value will be 103/-)
Step 2:
Post MIGO and Capture Excise Part - 1
Click on More details icon in Excise tab (header), check MRP Indicator in miscellaneous tab, Enter Assessable value as 80 in Excise tab Item level and enter the excise values BED, ECess , SECess manually, check & save the document.
Step 3;
Post Excise Part 2 in J1IEX
Step 4:
Post MIRO by checking calculate tax, edit base value as 80/- enter the amount in header as proposed by the system (103/-), simulate & post the document.
regards
kunal

Excise configuration in case of Third party sales

In case of third party sales of a excisable material, where the goods are supplied directly to customer by the vendor.
However the customer invoice is sent to the customer my organization
How will the excise entries take place?
Because in this case goods are not supplied from my depot, Also i need to charge the customer for excise, since the goods are excisable.
Can I claim the excise benefit for the above sale process?
Please revert
Regards
Sudhir Chavan

As the goods are not delivered from your factory premise and are delivered for vendor.
Means in system there is no outward goods movement from your plant.
So, logically you should not create Excise invoice for this.
But, you may need to consider VAT/CST based on the sales.
And that doesn't require any excise invoice.
Thus, no requirement of Excise configuration in case of Third party sales.
Yes, from procurement point of view, you would be paying excise to the vendor for this purchase.
Regards
JP

Tax issue in third party order related intercompany billing

Hi,
I have one isseu related to tax determination in third party order related billing document.
Ordering sales organization : Germany
Delivering sales organization: France
In billing document the Delivering country: FR (France)
Receiving Country: DE (Germany)
The tax condtion type: MWAS, Application of that condition type: TX.
Sytem is picking the A1 tax code from country FR and through tax procedure TAXEUR.
But the actually client requirement is system should pick upt he tax code from country DE (Germany). I.e., system need to pick up from receiving country.
I tried through SD tax condition records, it is not working.
I maintained the tax rate through VK11, like
Departure country (FR) - Destination country (DE) - Cust.taxclassi - material tax classi - Tax code (XT), the XT is belongs to France, When i maintained this system is not picking the tax amount from FTXP.
Please let me to come out from this issue.
Regards
Lakshmikanth

Thanks to all

Third Party Deliveries and VAT/taxes

Hello All,
customers using third party delivery between two EU companies in different countries are mostly facing the same problem: the tax code is not correctly found in the sales orders and has to be maintained manually. Some of the customers are doing more than 80% of their business with third party deliveries, so that is quiet anoying.
Here is an example process:
1) Own company located in GB. VAT registration for GB exists; no registration in DE.
2) Customers located in GB. In my example one of the customers has a VAT registration number (#772), the other has none (#771)
3) We order in DE; the delivery is done from DE directly to the customer. The supplier has a VAT registration number in DE and is not registered in GB.
4) In the customer master data tax examptions are setup for country DE (at #771 and #772) so that no VAT has to be paid in DE.
Attached you find the decision files made by the ByD tax engine. Depending on an existing GB VAT registration the tax engine comes to different results.
In a global view I would say: the VAT has to be paid in the country where the delivery endpoint is (in this case GB). As our company is registered in GB and the delivery endpoint is in GB there is always VAT to be paid in GB.
Astonishingly the tax engine comes to the conclusion (if a VAT registration number exists with the respective customer) that the VAT has to be paid in Germany where none of the companies (our company, the customer) is registered.
If no VAT registration number is set up at the customer master data, the tax engine decides to set the tax country to GB.
I know there are more complex scenarios than this, but I think this is the mostly used.
TAX GURUS - please help! What can be done to force ByD to use the correct tax country (eg GB) and tax code?
Kind regards,
Klaus Hoffmann

Hi Klaus,
Thanks for posting this - we face the same issue in our ByD implementation and as a result, as you point out, each line item on each invoice request has to be checked (and fixed) manually before we can issue Customer Invoices.
Better solutions for this (short of building entirely customized tax logic) would make ByD significatnly more usable for us.
Best regards,
Eelco

Third party - tax

Dear All
The following are the steps to process third party PO for my client business process.
1. Third party PR will come from PS module.
2. PR-IV process in MM module.
3. Purchase details now available in PS module.
3. From PS the third party document has to flow to SD.
4. By using RRB our SD people making bill to customer with the details captured from PS module.
Now my doubt is i am procuring material for amount 1040 including tax.
1000 is my base value
40(4%VAT)
total 1040
But in PS material value capture as 1000 only. Same in SD. They are getting price as 1000 only.
But our SD people want to make bill as 100040 as taxsome amount as margin.
Now what are steps required to get the tax amount in SD.
Kindly help me
Shobana

Hi,
Pl. check whether your VAT tax is inventorised or not.
Regards,

Excise & taxes in Third Party

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