Excise Duty Management

In addition to the General Food Law many organizations also have to cope with legislation regarding excise duties. This can make the business quite complicated. Excise duties have a bearing on the entire company process and the administration must be fully balanced. When something changes, this has to be fully accounted for, because if you cannot explain the loss your company will have to pay the excise duty on the missing alcohol itself. This is very important for these companies because the excise duty forms 60 to 70 per cent of the total consumer price.

Foodware

The Food and Beverage industry is characterized by specific requirements which can often not be catered for by a standard company-wide solution. For this reason Microsoft and its resellers have combined their many years of knowledge and experience into Foodware®. In combination with Microsoft Dynamics® NAV, Foodware® forms a fully integrated standard company-wide ERP solution specifically for food and beverage companies. Foodware is under continuous development and meets the latest industry requirements. This creates a specific solution, where costs remain manageable as the amount of customization is reduced to a minimum. Foodware has been recognized by Microsoft with the highest quality label: ‘Certified for Microsoft Dynamics’. Foodware consists of a number of integrated solutions, of which Foodware - Excise Duty Administration is just one. With this solution, you will have a completely balanced excise duty administration available.

Items containing alcohol

When your organization deals with items containing alcohol, you must maintain a fully balanced excise duty administration. Foodware - Excise Duty Administration offers you functionality to support you in meeting these legal requirements. The items containing alcohol can be set up in the system to meet the needs of your specific situation. For example, the alcohol percentage can be entered as a fixed or average value which is measured and registered on receipt. The tax category defines which tariff is applicable during which period. It is also possible to define the purchase price and/or sales price per ad 100%. The price will then be calculated based on the actual alcohol percentage. On the item master record you can see the available inventory as well as the untaxed inventory.

Excise duty items

You will gain insight into the applicable licenses and the beverages to which they apply for both customers and suppliers. For both purchases and sales, and based on the presence of a valid license, the system will decide whether or not the excise duty items can be brought into ‘consumer movements’. If necessary, any untaxed goods can be released manually. Using the prevailing tariffs the system will calculate how much excise duty can be reclaimed and how much is due. Also, reverse posting of excise duty items without a valid reason is seen as ‘brought into consumer movements’. The excise duty can be calculated periodically for these items, of course taking account of any inventory increases. Based on all this information, a periodic declaration to the authorities can be generated.

Excise duty item location

For storage in an excise duty bin code, all actions have to be reported with tax credits. Within the Excise Duty Administration solution, every transaction of an item containing alcohol is reported in a so-called excise duty entry. This defines the amount of alcohol, expressed in litres ad 100% or litres tel quel. If applicable, the excise duty amount is registered as well.

Administrative Accompanying Document

When moving goods in between excise duty item locations, an administrative accompanying document (AAD) is obligatory. Based on all the data in the item master record and the order, Foodware will automatically create the AAD and generate the documentation required for the sales process. On receipt of purchased items containing alcohol, the AAD received is checked against the values calculated. Should there be a discrepancy between the AAD received and the data checked, this can be documented for subsequent communication with the customs authorities. This can be done per entry or periodically with an accompanying EES list. The Foodware - Excise Duty Management solution registers the AADs that are present on this list. The solution fully supports the processing required for AADs that are to be approved and returned. If necessary, a document can be send to the customs authorities containing an overview of the AADs that have not been properly processed.

Production

During the production an alcohol containing product may be lost as a result of an incident. Naturally, you should not have to pay excise duty for these lost products. The incident should therefore be reported to the customs authorities, which gives them the opportunity to perform a check. Correction postings confirmed by the customs authorities will not be included in the excise duty declaration. When the raw materials consumed, semi-finished products and finished products are registered in Dynamics NAV, a check is performed for possible differences in the amount of alcohol that went in and the amount that came out. This means that the transparency of the alcohol inventory can be guaranteed.

Trade Shows & Social Media