Material Master (Excise Data) (SAP Library

Material Master (Excise Data)

Definition

The part of the material master record that contains information relating to Indian excise duty.

Use

In conjunction with other data, this data is used to calculate excise duty on various transactions.

To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes → Master Data → Excise Rate Maintenance, and then select the following options described below.

Structure

The excise part of the material master is divided into the following screens:

Chapter IDs

On this screen, you define the chapter IDs and corresponding descriptions as described in the excise tariff structure. This information is used when you create excise invoices and is also shown in the various excise registers.

Material and Chapter ID Combination

On this screen, you maintain the excise data relating to your materials. For each material, specify:

Chapter ID

Whether the material can be sent to subcontractors (see Subcontracting)

The material type

This denotes, for example, whether the material is a raw material, a capital good – this affects the CENVAT process – or if it is a finished good on which excise has been paid, to be covered by the Update of RG 1 and Part I Registers.

Whether you accept more than one goods receipt per excise invoice, and if so, whether the excise duty should be credited to the CENVAT account immediately a goods receipt is posted (multiple credit) or not until all the goods receipts have arrived (single credit) (see Multiple Goods Receipts for a Single Excise Invoice)

This information is valid for a given plant. If the information is valid for all of your plants, however, leave the Plant field blank.

Material Assessable Value

On this screen, you maintain the net dealer price and the assessable value of all materials that you send to subcontractors or for any other issue. These values serve as the excise base value when the materials are issued, and tell the system how much excise duty to reverse from your CENVAT account.

CENVAT Determination

On this screen, you specify which raw materials are used to produce which finished (or semifinished) goods. The system uses this information to determine whether it you can claim a CENVAT credit for a material.

Excise Tax Rate

On this screen, you specify for each chapter ID every possible rate of excise duty that might apply, so you must take into consideration each permutation of plant and customer; and each combination of plant and vendor.

You can maintain the basic excise rates in the following forms:

Ad valorem

Specific

As a combination of both

For each rate, specify until which date it applies.

You can also maintain the additional excise duty and special excise duty in ad valorem form, should any apply. If you need to give these rates as a fixed sum, use the Quantity Based AED and SED screen.

Additional Excise Rate

On this screen, maintain any cess applicable.

Exceptional Material Excise Rate

On this screen, maintain any exceptions that apply to the excise rates that you have defined. Exceptions can apply to a single material from all vendors, of to a single material from one vendor only. If you have an exceptional rate for a customer–material combination, you can maintain it here as well.

Sales Tax Setoff Percentages

On this screen, maintain the percentage of local sales tax on inputs that you can deduct against LST on outputs. The setoff amount is deducted from the inventory valuation of the material. Currently very few states, for example, Maharashtra and Gujarat, participate in this scheme.