| # Excise duty process in Normal Purchases This functionality is specific for India. The incoming excise duty functionality supports the goods received for the following business processes: Normal purchase Sales returns Inventory transfer Goods are received in a warehouse or directly at a project site. Goods received always accompany a document called Excise invoice. The excise invoice or goods pass out document provides the details of all the individual excise tax amounts levied on the delivered goods. To process excise duty for normal purchases, take the following steps: Create a purchase order In the Purchase Orders (tdpur4100m000) session, create a purchase order for the goods. Enter the Assessable value In the Purchase Order Lines (tdpur4101m000) session, Infor LN defaults the assessable value of excise in the following order of preference: If the MRP for Excise check box is selected in the Purchase Order Lines (tdpur4101m000) session, the assessable value is equal to MRP (Maximum retail price). Infor LN defaults the MRP value from the MRP of Item (tcibd9139m00l) session that maintains the MRP of the item for each state. The ASV Origin for Excise field is set to Maximum Retail Price. If the MRP is not applicable for the order line, Infor LN defaults the tariff price from the Assessable Value (tcibd9138m00l) session. The ASV Origin for Excise field is set to Tariff. If the tariff price is not defined, Infor LN defaults the order line price as assessable value and the ASV Origin for Excise field is set to Order Line. Select aggregate tax code In Purchase Order Lines (tdpur4101m000) session, select the aggregate tax code from the Tax Codes by Country (tcmcs0536m000) session. Approve the purchase order In the Purchase Order Lines (tdpur4101m000) session, on the appropriate menu, click Approve. Use Tax Breakdown structure to view tax amounts Infor LN calculates the estimated excise duties using the aggregate tax code. In the Purchase Order Lines (tdpur4101m000) session, click Tax Breakdown Structure to view the calculations of the excise duty. The aggregate tax code defined must contain all the excise related tax codes. In the Purchase Order Lines (tdpur4101m000) session, Infor LN verifies the following: Cenvatable check box is selected in the Item Default Data for Indian Localization (tcibd9136m00l) session. In the Tax Codes by Country (tcmcs0536m000) session, at least one excise related tax code must be present in the aggregate tax code, in which the Expensed Purchase Tax check box is not selected. Release the order to warehouse In the Purchase Order Lines (tdpur4101m000) session, on the appropriate menu, click Release to Warehousing, to release the purchase order to warehouse. Infor LN defaults the order line in the Warehouse Receipts (whinh3512m000) session. Capture Goods pass out Document To specify the details of the excise invoice, complete the following steps: In the Warehouse Receipts (whinh3512m000) session, on the appropriate menu, click Capture/View GPD; the Capture Goods Pass Out Document (whinh9540s10l) session opens. Specify the Excise Invoice Number and Total Excise Duty. Save the details. The Status of the document changes to Captured. Click Goods Pass Out Document, the Goods Pass Out Document Lines (whinh9136m00l) session starts. Specify the excise tax amounts for the receipt line. Infor LN populates the Capture Goods Pass Out Document (whinh9540s10l) and Goods Pass Out Document Lines (whinh9136m00l) sessions, when the Excise Invoice Number and Invoice Date are specified in the Warehouse Receipt Headers (whinh3110m000) session. Approve GPD To approve the GPD, in the Capture Goods Pass Out Document (whinh9540s10l) session, click Approve. Infor LN approves the GPD when the Automatically Approve GPD check box is selected in the India Localization Parameters (tccom9136m00l) session. Following are the Goods pass out document stipulations: A Goods pass out Document, can be approved by the person authorized to scrutiny all the excise related data. To delete the document, you can disapprove the Goods pass out Document. A Purchase order line with an approved Goods pass out Document cannot be deleted. Confirm the Receipt line In the Warehouse Receipts (whinh3512m000) session, on the appropriate menu, click Confirm Receipts to confirm the receipt line. The Status of Goods pass out Document changes to Approved. You can make changes in Goods Pass Document only before confirming the receipt line. Following are the receipt line stipulations: A receipt line cannot be confirmed if the transaction is Excisable and Goods pass out Document is not approved. Removing the receipt line will remove the Goods pass out Document also. If the item in receipt is serialized, you can confirm the receipt line only when the serials are generated. After the Goods Pass Document is captured and approved for a single receipt line, you can copy the same Goods Pass out Document to all other serialized items under the same receipt header. Click Copy GPD To Other Serials to maintain serialized Goods Pass Document for a single receipt line. Update Expensed taxes for the received quantity After the receipts are confirmed Infor LN creates an inventory variance and updates expensed taxes to received quantity. You can view the inventory variances in the Inventory Variances (whina1516m000) session with the Inventory Variance Origin as Expensed tax. Infor LN processes the inventory variance immediately in the Process Inventory Variances (whina1200m000) session. If the transaction is excisable, the expensed taxes are actuals and the non- excise duties are estimated. Update Claimable taxes If the Cenvatable check box is selected in Purchase Order Lines (tdpur4101m000) session, Infor LN stores the Claimable taxes to Financials and non-claimable tax amounts to inventory. If the Excisable check box is selected and if the Item Category field is set to Non-Capital or Capital, Infor LN updates Part 1 of the register RG23 A/C. Update claimable taxes in Financials Infor LN populates the data in Financials with the tax details for the order relating to both claimable and non-claimable amounts. Use the Accounts Payable module in the Financials to process the updated claimable taxes. Use the Process Order Tax Details (tfacp9235m00l) session, click Generate Transactions button to post transactions. The Serial Part II for each ECC number is updated. The records are selected in order of preference of Receipt date, Receipt time and ECC or Tax registration number. You can also simulate before generating the order. Use the Print Processed Order Tax Details (tfacp9435m00l) session, to generate a detailed report of claimable taxes that are processed. As part of the prerequisites, you must set up data, before using Financials. For details, refer to Prerequisites for using financial postings. Register Purchase invoice In the Purchase Invoice Entry (tfacp2600m000) session, enter the invoice details. You cannot link excise related tax codes directly to an invoice. The Level of Tax Calculation field is set to Transaction Line for excise related invoices. Infor LN sets Invoice Status field to Registered. Match purchase invoice with purchase order In the Purchase Invoice Entry (tfacp2600m000) session, with the Invoice Type set to Invoice related to Purchase orders, on the appropriate menu, click Match with, to match the purchase invoice with the purchase order. On the appropriate menu, click Invoice Tax Lines; the Invoice Tax Lines (tfacp9136m00l) session opens. You can view all the tax line details of the order that are defined in the aggregate tax code. Create tax postings In the Invoice Tax Lines (tfacp9136m00l) session, select each order line and on the appropriate menu, click Create Tax Postings to create tax postings. In the Purchase Invoice Entry (tfacp2600m000) session, on the appropriate menu, click Tax Transactions to view the tax postings of the order line. Approve purchase invoice In the Purchase Invoice Entry (tfacp2600m000) session, on the appropriate menu, click Approve. You cannot approve the invoice unless all the tax lines in the Invoice Tax Lines (tfacp9136m00l) session are processed. Posting Ledger accounts Infor LN posts the defined ledger accounts for the tax code. For details refer to, Financial Postings for Expensed taxes. Pay the purchased goods You can make payments for the purchased goods, only when the invoices are approved. Use the Cash Management module to make payments. Archive or Delete Fully paid invoices In the Archive / Delete Fully Paid Purchase Invoices (tfacp2250m000) session, the invoices that are fully paid, are archived or deleted. Declare taxes Periodically, declare the tax after utilizing the CENVAT credit against the credit that is availed. For details, refer to ER1 report. Note In the Purchase Order Lines (tdpur4101m000) session, the following fields can impact the tax calculation. ECC is the excise registration code that gets defaulted for the order, Item Category specifies if the item is a Capital or Non-Capital Item, Final ASV is the assessable value for the ordered quantity. Excise Applicable check box must be selected to make an order applicable for excise duties, |