I guess that means we have solved his problem 
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not the way it should be, but yes a great workaround. but if we can have some better way to resolve it, it will be highly appreciated.
It has been resolved @himayun19. The reimbursement of E. Duty is an expense. Direct it into some expense account e.g into duties expense account or something
E.Duty has been paid by the manufacturer at the time of removal of goods from their factory premises. so it not expense, we have to treat this as VAT.
In that case, direct it into some tax account in the balance sheet (Asset account or liability account, you choose depending on your tax system).
For example the account in the image is a liability account. What will happen here is that, the amount will end up in that liability account.
Problem is, the E.duty is computed on the discount exclusive amounts, this makes it difficult to put it in a Tax code. The tax codes are calculated on the amounts net of discounts. Discount rate vary for every transaction so you cant do any adjustment and enter an effective E.Duty rate.
I am not a Tax expert but I think your countryās Tax laws are hard. Your taxation system is complicated and include many unnecessary laws like VAT on E.duty and the coming disclosure requirement on invoices Indian users here are trying to get Manager to meet (Iām thinking you are from India).
So I think the solution I have suggested is your best option. Hopefully someone will come along with a better idea.
Will it not be possible to set the discount as a negative rate under multiple tax?
Donāt think that would help.
In multi tax you canāt add tax rates where one is calculated on the pre discount value while the other is calculated on the post discount value. Manager tax codes (single or multi) only work on post discount values.
From what i understood from your invoice I was very much convinced that the party has not made an excise invoice to you because it clearly says āReimbursementā. He has only charged the excise duty expense he incurred when purchasing raw materials in case they are manufacturing or when buying from the dispovan from their supplier. An excise invoice can be made only by a firm which is under the excise category. If your party does not belong to the excise category he cannot reclaim the excise duty he paid for his purchase and so he would add the excise value to his invoice value. In this case you can only claim a refund for the VAT amount and the ED is just an expense which adds to your material cost.
Discounts are different for every transactions, but tax codes are constant until altered by new tax laws. You will have to change the discount rate in every situation with a different discount rate, am I getting you right?
I understand. I was thinking maybe he could define a tax applicable only for these invoices.
That all.
I would be glad to get the current version of this challenge as we need it resolved and I would be glad to know especially the aspect of Non-refundable Excise Duty for a manufacturing plant that does also import materials and also purchases items and gets a purchase invoice with excise duty.
It sales the finished products and their invoice should have both Excise Duty (LED as we call it in Uganda) and VAT.