(IND) Post purchase transactions of excise using Invoice register form
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2
Note
This topic has not been fully updated for Microsoft Dynamics AX 2012 R2.
You can post purchase transactions with excise details using the Invoice register form. The procedure is similar to posting transactions in the General journal form.
Note
The excise registers will not be updated when you post a journal from the invoice register.
Click Accounts payable > Journals > Invoices > Invoice register.
Create a journal line in the invoice register. The procedure to create a journal line for excise transactions in the Invoice register form is similar to creating journal lines in the General journal form.
Note
For more information see, "Create and validate a journal and journal lines" in the Application and Business Processes Help.
Click General ledger > Setup > Sales tax > Item sales tax groups.
The formula for the calculation of excise is defined in the Formula designer form as illustrated in the following table.
Tax code
Taxable basis
Calculation expression
BED
Max. retail price
AED
Max. retail price
SED
Max. retail price
+[BED]+ [AED]
E-Cess
Excl. line amount
+[SED]
SHE-cess
Excl. line amount
+[SED]
Select the Price incl. tax check box for all the tax components in the Formula designer form. The excise rate percentage for BED is 10 percent, AED is 10 percent, SED is 5 percent, E-Cess is 1 percent, and SHE- cess is 1 percent.
Validate and post the journal line in the Invoice register form.
Example
Suppose that you create an invoice journal in the invoice register. The credit amount in the journal line is INR 9,000, and the maximum retail price of the item is INR 6,000. The excise record type selected is RG23C. Set the claim percentage for CENVAT to 50 percent in the Claim percentage form.
According to the example, excise is calculated in the Invoice register journal as follows:
BED = (4,757.37*10%) = 475.74
AED = (4,757.37*10%) = 475.74
SED = (5,708.85*5/100) = 285.45; (4,757.37 + 475.74 + 475.74 = 5,708.85)
E-cess = (285.44*1%) = 2.85
SHE-cess = (285.44*1%) = 2.85
Max. Retail Price = Tax basis + Excise = 4,757.37 + 1242.63 = 6,000
Note
The tax basis and the taxes are calculated automatically by the Microsoft Dynamics AX application. The amount origin and the tax amounts calculated are displayed in the Temporary sales tax transactions form. An excise duty of INR 1,242.63 is calculated.
When the journal is posted, the recoverable accounts of the tax components are debited with the 50 percent of the related excise taxes and the RG23C deferred accounts of the tax components are debited with the remaining 50 percent of the related excise taxes. However, the RG23C Part II register is not updated with the excise tax amount.