When purchasing contracts or purchase orders are created, the system proposes excise duty data from master records or from Customizing based on the default hierarchy . This data is used to calculate excise duty.Excise duty postings and inventory postings do not take place until goods receipt, however.
Whether or not the material is ED-paid is important for excise duty postings, and whether the receiving plant or storage location is an ED-paid area or an ED-free location. The following “excise duty situations” can arise:
Excise duty situations in purchasing
The receiving plant or storage location of your company is.
Your “excise duty situation” (ED claim, ED liability)
Delivers ED-free material
There are no ED claims or liabilities
Delivers ED-paid material
There are no ED claims or liabilities
Delivers ED-free material
Liabilities: You pay excise duties to the local tax office.You pay the invoice for the material value to your vendor.
Delivers ED-paid material
You pay the invoice for the material value and the excise duties to your vendor, that is, the invoice encompasses the gross price including excise duties.You make a claim at your local tax authority for the value of the taxes you paid to your vendor.
You have defined excise duty data as default values in master records. You have also made the following Customizing settings so that the system can propose default excise duty data when a purchasing contract or purchase order is created.
Customizing for the Industry Solution Oil & Gas (Downstream)
Excise duty status of the material at the FROM location (that is, your vendor’s location)
TDP Global Settings Parameter Assignments Assign Excise Duty Status to Handling Type
Internal or external determination of the excise duty rate
TDP Global Settings Parameter Assignments Define IS-Oil Company Code Parameters
You have defined allowed combinations of excise duty keys in Customizing for the Industry Solution Oil & Gas (Downstream) by choosing TDP Global Settings Parameter Assignments Define Combinations of Excise Duty, Tax Status, Account Determination .
For dutiable material, you have to enter a handling type for each item. The handling type determines the excise duty status of the material at the FROM location, that is, your vendor’s location.
The system proposes either internal or external determination of the excise duty rate from Customizing.
You can enter a valuation type for each item. The valuation type determines the excise duty status of the material at the TO location, that is, at your company.
The system determines the ED claims or liabilities on the basis of the excise duty data. Due to the fact that the material is not dutiable until goods receipt, no excise duty or inventory postings are made when the purchasing contract or purchase order is created.
When it posts the goods issue, the system checks the excise duty postings against the settings in Customizing (Define Combinations of Excise Duty, Tax Status, Account Determination ) as follows:
The system then creates a material document and an accounting document showing your excise duty liabilities or claims with the tax office.
Goods receipts of dutiable material that is free of charge
If you get a delivery of free material that is dutiable, you can post a goods receipt.The prerequisite is that the net price is zero and the gross price corresponds to the excise duty.
Goods receipt of material with a purchase price that already contains excise duties
If you order a material with a purchase price that contains excise duties, the system can determine the net material price by subtracting the tax value. The valuation of the material at goods receipt or during the inventory posting is based on the net price.
You can use additional condition types in the purchase order item to calculate the excise duty portion of the gross material price. There are two condition types:
The system subtracts the excise duty portion from the gross material price. At the time of the goods receipt, the system posts the net material prices to the stock, and posts the excise duty portion separately to the excise duty inventory.