Set up excise duty

Excise duty regulations may vary per country. Each country has specific rules and parameters for calculating the excise duty amount. These parameters are defined on the Excise Duty Setup page.

You can set up the general parameters for the excise module using the following steps:

1. Select the Search icon , enter Excise Duty Setup, and then choose the related link.
   The Excise Duty Setup page opens.

2. On the General FastTab, turn on the Check Item Excise Data toggle to automatically check the item excise data.

   
   With the help of Check Item Excise Data field, you can define the critical and/or mandatory fields that have to be checked on the master data level to ensure smooth functioning of the Excise Duty Management (EXC) extension.

   
   The status of the Item Excise Data is automatically set as 'Released', and the item can be used in all different documents, if the Check Item Excise Data toggle is turned off.

   
   If youturn on the Check Item Excise Data toggle, all existing item excise data is automatically checked.

3. You can set up with the Sales Excise Calculation Date, if the calculation on the Sales Documents is based on the Shipment Date or Order Date.

   
   When the Shipment Date is empty, the system falls back to the Order Date.

4. You can set up with the Purchase Excise Calculation Date, if the calculation on the Sales Documents is based on the Expected Receipt Date or Order Date.

   
   When the Expected Receipt Data is empty, the system falls back to the Order Date.

5. In the Reason Code on Inventory Adjustments field, select if you want your reason code to be Required, Warning, or Not required for the respective item.

   • Required: Use this parameter when considering that Reason Codes are necessary for the posting Item Journals lines on the Item Journals page. In that case, you must select the reason from the lookup in the Reason Code field. When you set up the 'Required' reason code, you cannot complete the posting of Item Journals lines without providing the respective reason code on the Item Journals page.
   • Warning: Use this parameter to determine whether a Reason Code is mandatory or not.
   • Not required: Use this parameter if the Reason Codes are not necessary for posting Item Journals lines on the Item Journals page.

6. The Domestic Excise Country Code is a mandatory field. You can define the Country/Region Code with this setup for Customers, Vendors or Locations if the Country/Region Code is empty in the master data setup.

7. In the Substance Volume FastTab, a maximum of 5 substance volume fields can be freely defined and used on the master data level and in the transactions. These substances are elements based on which Excise Duty amounts are calculated.

   • Caption: For an example, Field-1 = Alcohol%, Field-2 = Extract.
   • Unit of Measure: It is the general Unit of Measure of that Substance Volume field. When you fill a Substance Volume Caption field, you must enter the respective Unit of Measure.
   • Editable: You can make the Substance Volume editable with the help of this indicator in the Item Excise Data. By default it is always off.
   • In the Item Excise Data, only the Substance Volume fields are visible when a caption is defined for that Substance Volume field and the Substance Volume Editable field. It is editable when the related fields are turned on.

8. On the External Documents FastTab, choose the External Document Nos. and turn on the Create External Document toggle to create an External Document for Sales, outgoing Purchase Return and Transfer Documents.

9. On the Alcohol Balance FastTab, you need to set up the following fields:

   • Gain/LossItem No.: The selected item must be of the type Non-Inventory.
   • Gain/Loss Reason Code: You must set up the reason code for which the Gain/Loss posting is carried out.

10. On the Sales Pricing FastTab, you need to set up the following fields:

    • Sales Unit Price Incl. Excise: Defines whether the excise is included or excluded in the unit price on the item card. You can choose True or False.
    • Sales Disc. Based on Price Incl. Excise: Defines if the discount is applicable on the price including or excluding excise. You can choose True or False.
    • Sales Rounding Type: Defines how the price is rounded when the price is recalculated in the price agreement, the options are:
      • No Rounding (Default)
      • Nearest
      • Up
      • Down
    • Sales Rounding Precision: Defines the number of decimal places when the price is recalculated and rounded based on the settings.

11. On the Purchase Pricing FastTab, you need to set up the following fields:

    • Purchase Disc. Based on Price Incl. Excise: Defines if the discount is applicable on the price including or excluding excise. You can choose True or False.
    • Purchase Rounding Type: Defines how the price is rounded when the price is recalculated in the price agreement, the options are:
      • No Rounding (Default)
      • Nearest
      • Up
      • Down
    • Purchase Rounding Precision: Defines the number of decimal places when the price is recalculated and rounded based on the settings.