Does anybody know how to use the Excise Under Rebate functionality in India Localization?

Hi,

My client plans to the adopt the practice of ‘Export Under Rebate’ in which they export the goods by utilizing the balances available in RG23A/RG23C.

They charge excise with regular excise rates but these duties are not charged to the customer but charged to the Rebate Receivable account. This is mainly because my client is a 50% export based company hence they have a huge CENVAT credit available already. Hence they want to utilize this CENVAT credit to boost their liquidity.

They expect the following accounting entries from Oracle Financials:

Create AR Invoice for Customer without the taxes included. Then create separate invoice in the name of the government(setup as a customer) with the taxes.