SAP Financial Accounting (FI) Taxes (FI-AP/AR) Remittance of Excise Duty Fortnightly

Use

You use this report to calculate how much excise duty you must remit to the authorities. Legislation requires you to remit excise duty twice monthly: for all the goods issues in the first half of any given month (1–15 inclusive) and from 16 to month-end. In each case, you are allowed five days to remit the excise duty.

Once the report has determined how much you have to pay, it allows you to specify where the money should be paid from – whether it should be deducted from the CENVAT credits that you have accumulated, or whether it should be deducted from the personal ledger account (PLA).

Irrespective of which date you execute the report on, you can only utilize CENVAT credits posted up until the 15th or the last day of the month as the case may be.

Prerequisites

You have:

· Customized the system so that when you create an excise invoice for a sale, the system automatically debits the excise to a CENVAT clearing account

· Made the settings in Customizing for Logistics – General, by choosing Taxes on Goods Movements ® India ® Business Transactions ® Utilization

Features

To access the report, on the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Fortnightly Payment.

Selection

On the selection screen, enter data as required:

· Organizational data (in the General data group box)

· Posting date for the CENVAT payment, if it is different from the run date

· The period to be covered by the report (for example, 1–15 January)

If, for any reason, you want to select an excise invoice individually, you can do so. Any entry in the Period field will be disregarded.

To display a list of all the excise invoices whose excise duty you have not yet remitted, choose Display pend. invoices.

To display a list of only the excise invoices for a given period, enter the period in the Period fields, select Select pending inv. for period, and choose Display pend. invoices. You can also print the list of pending invoices.

To display the last date when tax was remitted, choose Display last util. date (Display last utilization date).

Output

For each sort of excise duty, the system shows you:

· How much you have to remit (Amounts payable group box)

· How much credit you have at your disposal on the appropriate CENVAT account (Available balances)

This figure is equal to the credits on the CENVAT account less the minimum balance.

· How much credit you have on the CENVAT accounts (G/L account balances)

You now have to specify which accounts can be used to utilize the duty amount. In the Balance Utilization group box, the system proposes how much money should be taken from which accounts. You can overwrite these fields if you want, and choose to refresh the display.

For a list of excise invoices that are considered for the CENVAT payment, choose Display excise invoices. You can print the list and use it as an annexure.

When you have finished, save your entries. The system then:

· Creates an accounting document that:

¡ Credits the CENVAT clearing account to remove the excise duty owed

¡ Debits the accounts from which the excise duty is to be paid

· Updates the Updates the Part II register