Excise duty in PO – Condition based pricing procedure

In SAP we have two types of Excise determination TAXINN and TAXINJ.

TAXINN is only supports condition-based excise determination, whereas TAXINJ support Formula based excise determination. Here I will explain condition based excise determination.

Step-1

Creating Condition Records for Excise Duty.

1. In the command field, enter FV11 and choose the conditions for Excisable and Non Excisable plant as mentioned under:

Excisable Plant:

JMOP – Excise Duty (12.5%)
JMX1 – Setoff for Excise duty (100%)
JEC1 – Ecess (2%)
JEX1 – Setoff for Ecess (100%)
JSEP – S&HEcess (1%)
JHX1 – Setoff for S&HEcess (100%)

SAP MM Module basic concepts

SAP is the abbreviated term for Systems, Applications, and Products. The SAP ERP (Enterprise Resource Planning) software package was developed by SAP AG in Germany and is comprised of different modules i.e. MM, SD, FI, CO, PP, QM and many others. These allow businesses to deliver excellent customer satisfaction while taking full control of daily operations to maximize results.

Among the modules is the SAP MM (Materials Management) module, which is part of the logistics area and is often integrated into production and manufacturing facilities that utilize SAP. The SAP MM module handles the procurement and inventory functions of organizations that engage in large volumes of purchasing by giving them hands-on control of inventory management, batch management, purchasing, client categorization, valuation, invoice verification and procurement process, just to name a few. 

For those concerned about materials management, the SAP MM module is integrated with other modules such as Sales and Distribution (SD), Warehouse Management (WM), Production Planning (PP), Quality Management (QM), Finance (FI) and Controlling (CO) so external and internal aspects are factored into each decision stage. It is therefore imperative that a deep understanding of how these modules work alongside the SAP MM module is fully in place to generate accurate input and output information in a quick and reliable manner. 

Automatic Clearing F.13 with Tolerance

If we want to execute F.13 i.e. Automatic Clearing with tolerance limit the we have to change the following setting in the configuration.

Batch Management

Batch Management is integrated with all the modules of SAP ECC 6.0. It supports the management and processing of batches in all of a company’s business processes. Batch Management can be used where the user wants to kept his stock in batches as well as for each type of movement we can use batch. Batch Management is mandatory for the Pharmaceutical, Textile and Food Processing Industries where all the materials will be identified by their batches/lot only.

Here I will explain the Batch Management with reference to the MM Module because Material Management is the base of Batch Management. In other modules we can use the functionality of the same but the master data will be setup in MM module only.