What is 'excise bond' in SAP LO - Logistics - General?

excise bond - Overview

• Component: LO

• Component Name: Logistics - General

• Description: A document, in India, that effectively licenses a manufacturing plant to remove goods from its premises without paying basic excise duty, on condition that the goods are then exported. An excise bond covers a fixed amount of excise duty. The excise duty of the goods exported under bond cannot exceed the bond value.

excise bond - Details

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  Key Concepts: 
  Excise Bond is a type of guarantee issued by a bank or other financial institution to ensure that the government will receive payment of taxes due on goods that are imported or exported. It is a legal document that binds the importer or exporter to pay the taxes due on the goods. The bond is usually issued for a specific period of time and can be renewed if necessary.
  
  How to use it: 
  In SAP, excise bonds are used to guarantee payment of taxes due on imported or exported goods. The bond is created in the system and linked to the relevant documents such as purchase orders, invoices, and delivery notes. The bond can be monitored in the system and any changes in the bond amount or expiration date can be tracked.
  
  Tips & Tricks: 
  It is important to ensure that the bond amount is sufficient to cover the taxes due on the goods. The bond should also be renewed before it expires to avoid any delays in processing the documents.
  
  Related Information: 
  Excise bonds are part of SAP Logistics - General module and are used in conjunction with other modules such as Materials Management, Sales & Distribution, and Financial Accounting.