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Basic excise duty calculated in duty free deemed export

Former Member
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Hi Experts,

We are facing an issue where system calculates basic excise duty in case of deemed export(duty free) . In some invoices it calculates basic excise duty though it should not calculate as it is duty free.

Our scenario is like this:-

At sales order  in deemed export we take alternative tax classification as "7"( Header level - Billing tab). Due to this my JMOD value becomes Zero which is ok. Another condition type is JEX2 which is 100% of JMOD.

Now while creating invoice at VF01, value of JMOD AND JEX2 are Zero which is absolutely OK. But at the time of release to accounting system update 12% value in JEX2 only which flows to G/L.

Example:-

This case is ok.

Condition type                                      Price

PR00                                                  100

UTXJ(100% Of PR00)                           100

JMOD                                                 0

JEX2(100% OF JMOD)                         0

Wrong duty calulation

Condition type                                      Price

PR00                                                  100

UTXJ(100% Of PR00)                           100

JMOD                                                 0

JEX2(100% OF JMOD)                         12

In our most case this work fine means if JMOD is 0 then JEX2 is also 0, But in some invoices system calculate or update JEX2 with 12% value after release to account which is not at all required.

We have checked all the customization setting which are ok.

Please advise why system is behaving this way only in case of some invoices.

Your efforts will be highly appreciable.

Regards,

Dharminder

Accepted Solutions (0)

Answers (2)

Answers (2)

Lakshmipathi
Active Contributor
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Please answer the following:-

  1. What Tax Procedure your client are into (TAXINJ or TAXINN)
  2. If TAXINJ, in J1ID, what percent is maintained?  If TAXINN, what percent is maintained in FV11?
  3. What was the value in excise invoice?
  4. What tax code is flowing in both the cases (that is where JEX2 value is flowing and where it is not flowing)?

G. Lakshmipathi

Former Member
0 Kudos

Dear Lakshimipathi ,

Thanks for your immediate action.

1. Tax procedure is TAXINJ.

2. In J1ID 12% duty is maintained.

3. Value in excise invoice is 145630.00 INR

4. We don't use tax code. It is derived through condition records.

Lakshimipathi ji our concern is that if JMOD & JEX2 value is zero at sales order and upto VF01. But after release to accounting JEX2 got updated with 12% of JMOD. Though JMOD is zero.

Regards,

Dharminder Dalal

Lakshmipathi
Active Contributor
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Can you reconfirm your statement that before saving the billing document, JMOD and JEX2 values are zero but after saving, only in the corresponding Accounting Document, excise values are posted but not in billing document when you checked in VF02. 

Also, please let me know what is happening after creating the excise invoice.  In fact, my third question was what values are there for JMOD and JEX2 in your excise invoice.

G. Lakshmipathi

Former Member
0 Kudos

Dear Lakshimipathi,

1. The value of JMOD & JEX2 is zero before saving the billing document. At VF02 values are also zero in both condition type. We have set background scheduling for release to accounting at midnight where all created invoices for local ,deemed and export get release to accounts at one time. This is the time where in some one or two deemed export invoice value flows in JEX2.

2. At the time of J1IIN values are infact Zero for basic excise duty, ECS & SECess.

Wrong value flows in JEX2 only after release to accounting. Also we are not able to reproduce this case in test server. Here everything goes well in test server.

Please let me know if you want any other details.

Dharminder Dalal

Former Member
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Dear Lakshimipathi ji,

Please advise why system is behaving this way.

Regards,

Dharminder

Lakshmipathi
Active Contributor
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Not sure what exactly your problem is and why system is behaving is.  Please check the following note:-

  • Note 927189 - Master Note for Additional tax fields and changes

For exports scenario, apply user exit J_1I7_USEREXIT_DUTY_IN_EXPORT where you can pass the field SUPPRESS_CALCULATION value as 'X' and retest the entire scenario.

G. Lakshmipathi

Former Member
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Lakshmipathi ji,

Can you please suggest what to write in user exit J_1I7_USEREXIT_DUTY_IN_EXPORT and if we apply then what will be the effects of this.

Till now we are not able to find the cause of this error.

Please advise.

Regards,

Dharminder Dalal

Lakshmipathi
Active Contributor
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Go through this thread and take the inputs from there. 

Tell the logic to your technical team and share this exit so that your requirement can be achieved.

G. Lakshmipathi

Former Member
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Dear Lakshmipathi,

With deep analysis and testing we observer below case:-

While creating export excise invoice with transaction code J1IIN we put export billing document. Now at the time of utilization system show excise invoice type as EXPORT with sub types like Bond/ No Bond/ Deemed / LoU. Here whichever sub type is applicable we select that like No Bond etc.

Now after saving export excise invoice without leaving J1IIN screen completely if user puts deemed billing document number then at utilization tab(f6) system again shows invoice type as Export with same subtypes like Bond/ No Bond. This is wrong as selected billing document is from local still its showing excise invoice type as Export in Utilization tab. Our observation is that system does not refresh the last transaction properties.

Instead of that if we completely log off of that screen and then enters deemed export billing document number system shows correct excise invoice type as Local.

Please advise why system is behaving like this. This is cause for above mentioned issue.

Please reply.

Regards,

Dharminder Dalal

Former Member
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Dear Lakshmipathi

One more thing we want to share is that if we first create local excise invoice then at utilization screen system shows excise invoice type as Local and when we go back and put export billing document system shows excise invoice type as Export with Bond/ No Bond/ LoU etc which is correct and required.

It means system is not refreshing data if we first go with export excise invoice.

Please suggest.

Dharminder 

Former Member
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Hi Experts,

Can anybody suggest system different behavior in J1IIN utilization as explained above.

Regards,

Dharminder

Former Member
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Hi,

Any idea on above case please......

Regards,

Dharminder

Former Member
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Dear Experts,

If anyone face this issue please give your valuable inputs. I will highly appreciates if got some advise or suggestion on the  issue in J1IIN

We have done the debug at our end and following is the observation

The name of the include is - MJ1IINF01

The variable that needs to be watched is - CUST_TYP

The perform called during the execution is DETERMINE_INVOICE_TYPE


1) Export first and deemed next

When we first create invoice for export the variable CUST_TYP is set to

“F” and the invoice is created as per expected with correct duties.

After this if we create a deemed invoice without exiting the screen the

invoice type under “UTILIZATION”, include keeps CUST_TYP as “F” and

do

not change it to “L”. Hence it remains export. Which is the cause of

problem we are facing at present..

But in next case it changes CUST_TYP properly as explained below.


2) Deemed first and Export next

When we first create invoice for deemed the variable CUST_TYP is set to

“L” and the invoice is created as per expected with correct duties.

After this if we create a export invoice without exiting the screen the

invoice type under “UTILIZATION” include changes CUST_TYP as “F” and

hence we get desired effect.

Our analysis shows that the include is not able to change variable

CUST_TYP to “L” from “F” in first case. But in second case it is

correctly changes to “F” from “L”.


Please advise.



Regards,

Dharminder

Lakshmipathi
Active Contributor
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Moved from SAP ERP SD Billing to Internationalization and Unicode.  Please post here for all your CIN related queries

G. Lakshmipathi