Incorrect VAT Clculation - 1st stage dealer Procurement

Hi,
I am processing couple of bills (MIRO) for 1st stage dealer. We have created a PO with tax code V2(EDECSShesc+VAT). One of the example:
Base Amount- 23,788.89 (Price inclusive of Duties)
JMOP - 0
JMX1 - 100%
JEC1 - 2%
JEX1 - 100%
JSEP - 1%
JHX1 - 100%
JVRD - 4% - 951.56
JVR1 - 100%- Same as above
MIGO Postings(Along with MRP Controller Check Box):
Base Value - 21,362.40
BED - 2,355.00
ECS - 47
SECess - 24
Part-2 Also posted correctly as per above values in part-1.
Facing problem during MIRO:
Enterig base value as: 21,362.40; Further after clicking on calculate
Tax button. Simulated values are correc for base value,ED,ECS & Shecs.
But VAT proposed value is 854.49 (its 4% of 21362.40) vis-a-vis 951.56.
J1ID is maintained properly.
Need your help in resolving the same.
Regards

Similar Messages

!st Stage Dealer

Hi Friends,
Can anybody explain how to do the procurement through 1st stage deale withCST and with VAT?( we don't know the base value of passon duty of 14.42 atthe time of PO).Please reply

Hi,
1. Create purchase order and enter net price (inclusive of base value and excise duties)
2. Excise duties not computed. (Excise duties = 0)
3. Capture of excise invoice
A) Capturing excise invoice together with goods receipt through transaction MIGO
- MRP indicator found in the Miscellaneous TAB popped up when you click on u201CMore datau201D button on Excise invoice tab at the header level in MIGO
The excise base value is defaulted as the PO price and the excise duties are zero. The excise base is changed such that the sum of the excise base value and the excise duties remain the same as the PO price. The excise base is reduced by the excise duty value and the differential amount is split amongst the relevant excise duty components.
Hence the material valuation also takes place correctly with the changed amount put as the excise base value. Otherwise this would incorrectly get inflated by the excise duty value also.
B) Capture excise invoice through transaction J1IEX
- MRP indicator found on the Miscellaneous tab in J1IEX
The excise base value is defaulted as the PO price and the excise duties are zero. The excise base is changed such that the sum of the excise base value and the excise duties remain the same as the PO price. The excise base is reduced by the excise duty value and the differential amount is split amongst the relevant excise duty components.
4. Invoice verification process through MIRO
Change the base value from PO Value to Assessable Value as per Vendor Invoice same as the base value of EI.

Excise Problem - 2nd Stage Dealer !!

Hi,
Our client buys material directly from factories or from vendors.
Case1.) when they buy from factory then excise calculation has no problem.
Case2.) when they buy from 1st stage dealer or 2nd stage dealer then excise calculation has a problem. the dealer increases the price of item after adjusting his profits and passes on the original excise to our client. when making a PO excise gets calculated on the 2nd stage dealer price ... but it shud not happen tht way... it shud be the same as passed on from the factory to the 1st stage dealer and then to 2nd stage dealer. though we have maintained "manual excise" condition in pricing procedure still there is a mismatch during MIRO.
Any suggestions ???
TAXINJ Procedure is being followed

In Migo 105 u can capture&/ Post excise invoice.
Use manual excise cond. in pricing
or
in j1iex use mrp tick
in Delear case u will have to maintain all the details as per raw material case
only diffence is in the % of bed ecess and secess put 0 instade of 16 2 and 1
at the time of po u know that u vendor will give u material at say 100 Rs increse of excise which u dont now and 4 % vat on it
So u r po will loke like 100 basic
bed 0
ecess0
scess 0
vat 4
total 104
now whe u do GR
u come to know u have 8 bed 1.6 ecess 0.8 sccess
at the time of gr in Excise tab value
put the excise base as 100-8-1.6-0.8 = 89.6
and in bed 8
ecess 1.6
secess0.8
and in header tab of excise in miscellaneous tab tick MRP indicator
save ur part one and 2 posted
then do the miro
on item line it will show 100 as amount change it to 89.6
click on calculate tax
and ur excate payment of rs 104 will be done to vendor
this the the correct process of Delear case
Hope this is help full
Reward if usefull
Refer
Reservation deletion after specified period

MIRO Problem - 2nd Stage Dealer !!

HI
Our client buys lots of raw material from 1st stage & 2nd stage dealers. They pass on Excise credit to our client.
This amount of excise credit is not known at the time of creating a PO. So the PO has only VAT condition calculated by the tax code (TAXINJ).
( Vendor gives excise invoice during delivery)
During GR they just capture the excise amount and tick the MRP indicator as well.
Then excise amount is posted with J1IEX .
.... Now the problem is tht during MIRO when we see simulation the excise amount is not posted to excise account but goes to price variances and stock acnt(inventory)
.. This creates a problem in accnting .. a big headache for accnts people......
... Guys tell me if the process is right or wrong and tell me if any other solution possible
Thank You

Hi,
this is a common scenario in all purchase of exciseable goods in India. It is called commerically as E2 purchase.
at the time creation of PO the excise part is not known. the dealer passes you the excise from the manufacturer. at the time of goods receipt only you come to know about the excise details.
steps are:
1) create the PO with the dealer price and give Tax code as V0(Zero tax). if other conditions like discount, freight etc are there, give the value.
2) DO J1IEX, tick the MRP indicator, in the miscellanous TAB you will find vendor field also. this field is used to capture the vendor number from whom the excise invoice has come.
give the values of excise duties in the exciseTAB what is mentioned in your vendor excise invocie.
this way the system will correct your basic price.( as dealer price includes the excise duty)
3) at the time of MIRO, the system will default the value as mentioned in the PO.
here you have to change the value and give the correct tax code.
you will get the right posting.
This is the way SAP document says on dealer purchase.
I understand your headache.
You drop me your mailid at [email protected]
I will see you get this document today, I have to search or
give me a day or two I will send you the SAP document on dealer purchase.
Regards
Rajesh

First Stage Dealer Excise Invoice

Hi,
We get an Excsie Invoice (First Stage Dealer Invoice *** Challan) from a Vendor as per the below detail:
Qty:                480
Rate:               114
Net Value:               54720
Assessable Value for Excise:      72480
Excise 10%:               7248 (Recoverable)
ECess 2%:               144 (Recoverable)
SHECess 1%:          72 (Recoverable)
Value for VAT Calculation:           62184
VAT 5%:               3109 (Recoverable)
Total Invoice Value:          65293
I have tried to map the scenario with SAP Note 1104456 - Use of MRP indicator for capturing excise duties from dealer but could not succeed.
I am not able to decide on following:
a. the Net Price in the Purchase Order,
b. Amount (Base Value, Excise Duty) which needs to be the entered manually at the time capturing Excise Invoice at the Goods Receipt (T Code: MIGO) with MRP Indicator.
c. the invoice amount at the time of invoicing.
Request you to please help us in the above scenario.
Also request you to tell me the FI Entries with Amount at all the stages.
Regards,
PK

Hi,
For the excise value you have to run the transaction code J1IEX(selection Capture:left corner in the screen) to capture.The system will take the base value and quantity from the Purchase order as u are going to capture the Excise amount with Reference to Purchase order by default. If quantity and Base value as well as the BED ,Cess, Ecess you have to change manually if reuired.Then save it......Go for GR....the system will ask the Excise invoice ref no. and date of Excise Capture.(in selection you take referral....option will be there).put the vendor Excise number and date which was given at the time of capture.system will take the capturing excise amount automatically.Check all the excise amounts in Excise Item.Post the GR.Again go J1iex transaction code select Post option(left corner)..put either vendor inv. no. or internally generated Excise no. and post it.
now for Vat amount the tax code will calculate in the P.O it self ...check that one .....the same amount will come at the time of MIRO.
and also the excise amount will come as per it is captured and posted when you trick on the check box (calculate tax)
With Regards,
Sudipto

Second stage dealer process

Dear All,
Kindly provide me the detail process of second stage dealer with scenario including configuration required.
Thanks
Sandeep.
Note : Subject is FAQ & widely discussed in forum,
I request you to search forum before posting,Kindly close this thread.
Edited by: Jeyakanthan A on Dec 9, 2011 11:54 PM

Dealer Purchase stage 1 and 2
Dealer case mapping in SAP
If you are using taxinn then in Fv11 you have to maintain excise conditions( BED,ECESS and HECESS) =zero instead of 16 , 2 and 1% and setoff conditions =100% and VAT conditions as per actual percentage for example 4% or 12%
In purchase order
Say Your Price is 100
BED=0
ECESS=0
HECESS=0
VAT 4%
Total will be 104
Now at the time of GR you will come to know the actual % is different .and total base value is 80/-
Put the excise base as mentioned in excise gate pass(80/-e.g)
Do not forget to tick MRP indicator on miscellaneous tab
Save your part 1 and post the GR
also post part 2
Then at the time of MIRO you will have base value as 100 ( original from PO) so change this value as per excise gate pass that is 80/-
and press calculate tax. You will get the desired result.
In addition:
First Stage dealer is the dealer who purchases from Manufacturer and sell it to you, where as Second Stage Dealer is the person / firm who purchase from First Stage Dealer & sell it to you.

Purchase Process from a Second Stage Dealer with Excise Inclusive

Hi Everybody ...
I am facing a scenario in two of our projects where the vendor happens to be a second stage dealer. This means that he has actually purchased the raw material from the manufacturer, and paid the excise to manufacturer.
Now this vendor gives us an invoice where he has included excise duty in the invoice amount. This invoice amount also includes his own commission. The excise duty remains same as was paid to the manufacturer.
The invoice also specifies VAT applicable on: 'base amount' + 'excise' + 'dealer's commission/profit'
Now the tricky part is how to separate the excise amount from this? The profit our dealer is charging is separate and non-excisable. Though VAT will be applicable.
Example:
Our vendor (a stage 2 dealer) sends us an invoice of Rs. 1180/- with excise at 8% (say, excluding cess for the time being).
If excise amount here is Rs. 80/-.
This gives us a Base amount = Rs. 1000/-
Dealer's commission/profit = Rs. 100/-
VAT = 4% of Rs. (801000100 (non-excisable))
I have not been able to map this into SAP B1 2007B.
Please suggest if there is a way this scenario can be mapped onto SAP B1 or if it will require some level of customization.
I need to accomplish this in the next 2 days.
Thanks for everything
TC,
Yatri

With reference to the query., pls note that you can put the 1180 in the unit price and assessable value or the per unit excise amount*qty in the Assessable value field. In the PO or GRN where you are putting the data be sure to have the Assessable Value and Tax Amount (LC) fields on. So you can put the assessable value and go to the tax amount table and put all the data in the tables and update it.

In second stage dealer po BED,ECES&HECESS value not coming zero

Dear MM Experts,
I am doing second stage dealer process.
As per my knowledge in the purchase order the Excise duties should come with zero value but in my case it is calculating automatically.
How to maintain this ?
Please help me out .
Thanks & Regards,
Sandeep.

Hi,
Refer links for details:
dealer purchase
Second stage dealer
Regards,
Biju K

Excise trading in 1st stage

Hi all
My client owns a trading company.
In 1st stage client purchases from manufacturer with excise which he passes to its customer later on during sale. so how to create tax code for passes excise to customer at the time of sale.
How to handle purchase and sales for first stage in SAP B1?
Any soln for this??
Thanks
sudhir

Dear Sudhir,
Excise trading in Indian taxation is like, you purchase a item and pay excise duties later you sales his item and gets back the excise amount.
If your incoming excise tax amount is greater than your outgoing amount than you have to pay this difference to Govt.
Following example will help you to understand excise pass on:
Suppose you are purchasing item X on the price Rs. 100 from vendor V1. Your vendor puts the excise tax BED 10%. Now you are liable to pay Rs 110 to vendor V1.
Now you sale this item X to customer C1 at the cost of Rs. 200 with excise Code BED 12%.
Now your customer is only liable to pay Rs. 212.
How.
Your Purchase Price            Rs.100
You Payed Excise on           Rs. 100 (Aces sable Value).
Your sale price                          Rs 200
Customer pays Tax on              Rs. 100 (Ace sable Value.)
Please Make sure that Accesable value is not the value on which you purchases item X, But a value on which you actually payed Excise.
In the above example Ace sable value for item X for your customer is Rs 100 only not Rs. 200.
Hope This will help you.
You don't need to create any special Tax code to pass on excise.
Accesable value column is available on marketing document where you can enter value manually.
Best Regards
Ashutosh

Purchasing from second stage dealer

hi,
i am purchasing a material from a trader(second stage dealer),on that he give mi excise invoice,on which he calculate excise on qty,
material     qty     rate per unit      rate of duty %    duty per unit     EXCISE Dty & Ed cess         amount
cu rod         1733       256.77          8                          19.2                   33273.60                     444991
                                                    2                          .383                      665.47
                                                    1                         .192                       332.74
total:34272
the excise which is calculated is based on qty not on amt
for ex bed - qty*rate
                 1733*19.2=33273.60
the amt i.e 444991 it includes excise value also the rate 256.77 include excise rate also.
how to do in sap b1..
                                                                                thks.

Please check this blog if you have not read it yet:
/people/arshdeep.singh/blog/2008/10/20/defining-a-new-tax-code-in-sap-business-one-2005-b-and-2007-b
If there is no way mentioned in that blog, then you may not have any options to use tax code automatically but manual calculate it. You could also post it on the product development forum for future B1 release.
Thanks,
Gordon

Rejection to second Stage dealer

Dear Gurus,
This is a scenario where we have taken material from a second stage dealer, with all the MRP indicator in GR and all the process as per the dealer CENVAT process.
Now we to send the material back to the supplier through return PO. Please explain the process.
Regards,
Ashish

this can be done by selecting GET EXCISE INVOICE in J1IS.
Solved.

Incorrect VAT number - how to change?

Hello, I have entered incorrect VAT number at registration process, and now I can't see a possibility to change it on dashboard. How to solve this problem? By the way, is a possiblity to get a correction of invoice (the same reason that above)?

Hello AxilaCapital,
Please contact
Dev Center Support for assistance with this.
-Miles
Windows and Windows Phone Dev Center Support
Send us your feedback about the Windows Platform

AED for first stage dealer asset

hi
we r buying assets from first stage dealer
we did all configuration regarding AED
for normal purchase and FSD purchase it is woring ok
now when we take ASSETS with FSD we r not able to post AED
errror ,BALANCE IN CURRENCy
plz hlp
Edited by: Kunal Ingale on Mar 29, 2010 11:04 AM

solved with ticking LIABLE FOR AED for specific plant EXCISE REGISTRATIOn
Edited by: Kunal Ingale on Mar 29, 2010 11:33 AM

What is the 1 st stage and 2 nd stage dealer?

What is the 1 st stage and 2 nd stage dealer
how to capturer Excise for borh?

HI,
process of capture excise for both is same
In J1ID for that vendor code you have to maintain his details regarding 1 st stage and 2 nd stage dealer in vendor excise details
check following link for same
[http://sapfunctional.com/MM/MRPindicator/excise.htm]
Regards
Kailas Ugale

MRP Indicator in Dealer Procurement - CIN

Hi,
At present I am facing a difficulty during dealer's procurment process.For this SAP offers you the MRP indicator When this indicator in set, the excise component gets deducted frm your total value of purchase.By this the excises are posted into the relevant registers and the GR/IR account is posted by the stock value.
But for some reason in a particular Purchase Order the excises are not deducted from the total value of purchase.And the GR/Ir clearing account is also posted with the amount which is inclusive of excises.
In this particular PO, there are 3 line items , for the other two materials items the MRP indicator is functioning properly but for this particular material the problem arises.
If you know any reasons , please let me know.

Hi;;
Please check you have maintain j1id for your material and chapter Id combination
check condition type for your third line it should be same as of frist line item for which MRP indicator function properly
check following link also
[http://www.sapfunctional.com/MM/MRPindicator/excise.htm]
Regards
Kailas ugale
Edited by: kailasugale on Oct 17, 2011 10:58 PM

Incorrect VAT Clculation - 1st stage dealer Procurement

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