So I'm working on the Brewer's Report of Operations and had a question relating to "Beer returned to the brewery."
It is my understanding that the "Beer removed for consumption or sale" line should be equal to the amount reported on the excise tax returns for the period of the BROP. If, however, one has beer returned to the brewery, you take that as an offset against beer sold in that period, so on the excise tax return, you report the net beer removed.
Then on the BROP, if you have an entry on the "beer returned to brewery line," then it seems you need to report the total "beer removed for consumption or sale" to make the totals on the report equal. But then the amount reported on the "Beer removed for consumption or sale" line is higher than the amount reported on the excise tax returns by the amount returned to the brewery. Thus it might appear that one is under reporting their tax liability for the period.
What is the correct way to do this? Am I missing something here?
Thanks,
Corey
It is my understanding that the "Beer removed for consumption or sale" line should be equal to the amount reported on the excise tax returns for the period of the BROP. If, however, one has beer returned to the brewery, you take that as an offset against beer sold in that period, so on the excise tax return, you report the net beer removed.
Then on the BROP, if you have an entry on the "beer returned to brewery line," then it seems you need to report the total "beer removed for consumption or sale" to make the totals on the report equal. But then the amount reported on the "Beer removed for consumption or sale" line is higher than the amount reported on the excise tax returns by the amount returned to the brewery. Thus it might appear that one is under reporting their tax liability for the period.
What is the correct way to do this? Am I missing something here?
Thanks,
Corey
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