This website is not affiliated with, sponsored by, or approved by SAP AG.

Managing Federal Excise Tax Intra- and Cross-Co

Financials (FI, CO, TR, EC)

Moderators: Snowy, thx4allthefish, darkduck, Baz

Managing Federal Excise Tax Intra- and Cross-Co

Postby becca656 » Thu Aug 07, 2014 2:59 pm

We have a business process we need some help on from the financial folks.

Our client manufactures a controlled product that requires Federal Excise Tax to be applied only when the product leaves the bonded warehouse. We are valuing this material at the material and labor costs, plus a state tax if needed, prior to the product shipping. Once the product ships to our distribution centers, some of which are in the same company code and others of which are in a separate company code.

The problem we are having is during the transfer process, we need to apply the federal excise tax at the point (e.g., at the post goods issue) where it leaves the bonded warehouse. It needs to be assessed to some kind of account and transfer the costs to the receiving distribution center, where the value of the material is supposed to include the FET as part of the price.

The clincher is, the entire organization is using moving average price, so it really does have an impact as to how we manage this tax.

The additional problem is that there are limited opportunities where the distribution centers will need to return this material, but the bonded warehouse cannot absorb the FET in their moving average price.

If anyone has seen a scenario like this or has any ideas on how to handle, we would much appreciate.

The process of otherwise transferring the materials (using an NB or a UB purchasing document) works just fine - it is only the application of the tax that appears to be the problem.
becca656
 
Posts: 978
Joined: Tue Nov 25, 2003 8:41 am
Location: Connecticut, US

Return to Financials

Who is online

Users browsing this forum: No registered users and 7 guests





loading...


This website is not affiliated with, sponsored by, or approved by SAP AG.