Consignment Sales - Excise reversal

Dear Friends,
I have a scenario in consignment sales, where i raise an excise invoice during the fill-up process based on the assessable value & during the issue i give a discount on the assessable value to the customer. Based on the quantity consumed (issued) i raise an commercial invoice every fortnight. Since the excise has been calculated on the assessable value which is more than the actual value billed during issue, i have to claim back the excess excise amount paid to the government.
Request your inputs & suggestions on how to map this process in the system.
Regards,
Padamanabhan

Dear Padmanabhan
The process should be as follows:-
While despatching materials to warehouse, you charge only excise duty and no sales tax.  In the next stage, while despatching from warehouse to end customer, you charge both sales tax and excise duty.  If you are clear in this concept, you can configure accordingly.
You have to account the excise duty in such a way that for whatever amount you paid while moving to warehouse, it should tally with what you charge on customer and in fact, this should not be less than what you paid originally. 
Let us take an example, if you pay excise duty of INR 1000.00 while moving to warehouse against one proforma, you would be selling part quantities to end customer with various invoices in which the respective excise duty and sales tax would be debited.  You need to show the total excise duty which should tally with what you pay initially to Central Excise authorities.
thanks
G. Lakshmipathi

Similar Messages

  • Cancellation of sales excise invoice

    Hi
    I am trying to cancel the a sales excise invoice
    In tcode J!IH > cancel excise invoice, the system is giving an error
    Excise modvat accounts not defined for CEIV transaction and excise group
    Kindly provide solution for this
    Regards
    Suresh

    Hello,
    There is no need of any customisation steps for the same.
    For cancelling a Billing document you need to use transaction VF11 and give the billing document number and save, the cancellation document will be generated. The cancellation document type S1 will be maintined in the billing type.
    For cancellation/Reversal of PGI, the trnasaction is VL09, once your reverse the PGI, you can delete the delivery by VL02N.
    You may delete or reject a sales order, if all the subsequent document has been cancelled / reversed. Use the transaction VA02 for rejecting / deleting a sales order.
    Prase

  • Consignment Sales - Problem : Dual Ex. Duty Paid, but recovered only once

    Dear Experts,
    We are working on Consignment Sales configuration.
    we have done all configuration as per standard practice and observing correct postings.
    Post Goods Issue, we normally have two seperate postings :
                          Set 1 :
                                Ex. Duty Paid Dr
                                Ex. Duty Payable Cr                                                                               
    Set 2 :
                                Customer A/c Dr
                                E. Duty Recovered Cr
                                Sales A/c Cr
    We are using same pricing procedure as that of regular Sales.
    But in trials, we are observing that the Excise Duty Paid  / Payable is getting posted twice, but is recovered only once.
    how do we investigate & correct the error of this dual posting of Ex Duty Paid / Payable. If new pricing procedure is to adopted, what should the change in it?
    pleae help and Yes, wish you all a very happy diwali.
    Experts, please help.
    Edited by: Hussein  Merchant on Oct 20, 2009 6:51 AM

    Hi,
    As per stand.SAP consingment is divided in to four types i.e CF, CI, CR, & CP.
    When you are snding goods to your consingment stock which is in costumer premices, you have to pay Excise duty while moving the goods from yuor manufacturing plant.
    so at that time only you have to pay Excise duty. i.e at the time of consingment fill up only.
    At the time of consingment issue , your actual sales happend means your actual stock will decrease & sales happend.
    See first you have to check from your business that your consingment fill up  price & consingment issue price is same or differnt.
    for example if you are removing goods from your manufacturing plant at price Rs.100/- that time you have to pay Excise duty Rs. 14/- only.
    At the time of Consingment issue if you are saling the same goods may be at the price of Rs. 150 then you have to pay excise only for Rs.50 only . In most of the cases both CF & CI prices are same so you have to create two pricing procedure in which at the time of CF only excise will get calculated & postings will be happend. At the time of CI no excise will get posted only it will show or get printed on invoice , no postings will be hapend. You can do this by making changes at condition type level.
    Please feel free to contact me if still you have any doubt.
    Thanks
    Devdatta.

  • Taxes in Consignment Sales

    hi SAP Gurus,
    Can anyone help me in, how excise and taxes are levied in the 4 different stages of consignment sales.
    Normally excise is applicable when the material is moved out of the plant, i.e. consignment fillup, but in this stage no billing is created.
    Hence, when and how excise is calculated?
    Points will be rewarded.
    Thanks in advance,
    Surya

    Dear Surya
    Yes you are absolutely right.  Taxes and duties are exempted only in case of exports and will be applicable in case of domestic scenario.
    In domestic process, you have to first come to a conclusion as to whether
    - you are treating the agent / warehouse as a third party  or 
    - you are treating the agent / warehouse as your own depot
    In case of first option, yes you have to levy duty and tax and in case of second one, only duty is applicable and tax is exempted.
    thanks
    G. Lakshmipathi

  • Consignment Sales Process in India

    Hi Gurus,
    I want to know what is process flow for consignment sales
    , e.g
    VA01(KB/CF) -->VL01N(LF).........AND SO ON
    Where do the Excise Transactions come into picture?
    In consignment Fill-up, Do we generate Excise Invoice and what will be the rate of Excise duty?
    Will Consignment-Pick-up be treated as Returns in context of Excise Duty?
    Your responses will surely be appreciated and rewarded.
    I have searched in forums, But process flow is not there.
    regards,
    Sapologist

    I have searched in forums, But process flow is not there
    I am sure, this is not a true statement !!!!!!!!
    Many times, this topic was discussed in forums and almost every time, the process has been explained.  In fact, on many occasions, I myself had explained. 
    One more time, I explain as below
    Consignment Fillup Process
    a)  First you have to create a fillup order (type KB) from delivering plant on Sold to Party who places the order on plant.  Based on this, plant proceeds with manufacturing and make ready the stock.
    b)  Once stock is ready, you would move the goods from delivering plant to special stock (Cust.Consignment) via fillup delivery (type LF) with movement type 631.  Here once you do PGI, no material document would generate due to the fact that you just transfer the stock from one place to another place within the company code.
    c)  Next you generate proforma (type F8) against this PGId document where the excise duty would be statistical.  Here also, no accounting document would be generated
    d)  Since the materials are being moved from manufacturing unit, you need to generate an excise invoice referencing the proforma and here, the excise people, will decide whether the exports (if it is exports) is to be made against Rebate or Bond or LUT.  Here also, no accounting document would be generated
    This ends the fill up process
    The next stage is Consignment Issue Process.
    a)  Here you create an issue order (Type KE) referencing the proforma from the warehouse. 
    b)  Against this issue order, you generate an issue delivery for the quantity whatever inwarded by end customer with movement type 633.  Here a material document would generate as the stock goes out of the company
    c)  Finally you generate a commercial invoice (type F2) on end customer for whatever quantity they inwarded.  Here also, an accounting document would be generated.
    Hope now it is clear.
    thanks
    G. Lakshmipathi

  • Credit management for consignment sale

    Hi,
    It is well accepted that in Standard SAP , for consignment sale process credit check is done in Consignment issue level as in this phase material stock is logically got diminished from valuated stock. But business dynamics need some solution with nature of business needs and from that point we need that how the same can be managed with consignment fill up. Consignment fill up is the stage where material is moved from plant gate to reach consignment agent's premises which is geographically may be located far away and this is the phase where user can want the credit check before dispatching more quantity with that of payment have received or with a threshold value of credit limit though the stock is under ownership of plant and that same will be transferred to customer after consignment issue.
    now we have configured system in that way, KBN and KEN item category has been configured  perfectly as needed(like credit indicator checked for KBN and unchecked for KEN item category).
    But the problem is faced like following way.
    Suppose I am doing a transaction of delivery against a consignment fill up order with value of 2 Lakh with that much credit limit and after making the delivery it got updated in FD32 open sales value (2 Lakh) which is correct in this context.
    Secondly at the time of consignment issue delivery further open sales value is not updated with 2 Lakh which is also correct(as credit check is inactive as it should not be update the open sales value as 4 Lakh)
    Lastly when we are preparing the consignment commercial invoice with reference of consignment issue delivery then after posting 2 lakh got updated in receivables in FD32 which is also correct but at the same time open value should be diminished to zero which is not updating and this is wrong as then credit exposure is calculated wrongly for next transaction. so huge value will be accumulated in open sales value for consigmeet agent and the same cannot be rectified by standard program RVKRED77 like normal customers.
    So please explore what may be the solution for the same(may be any configuration setting) or if there any another correction program exists.
    Regards
    Indranil

    Dear Mr. Lakhshmipati,
    Thanks for your reply.
    I need the input to be given that we are running the credit check with update group 000015 . So in this case S066- OEIKW will not update anytime.
    As per note 492831 is declaring that for consignment fill up if the credit indicator is active but the table S066 - OEIKW will not update for open sales value in case of consignment fill up
    But we have tested that after creation of the delivery against consignment fill up open sales value updated in FD32 (as item category KBN has set as credit active) and the same figure is coming from the table S067 - OLIKW.
    But it is not duplicated with creation of the delivery from consignment issue(as for item catefory KEN this check is inactive) and after creation of the commercial invoice receivable got updated but same value should be cleared from S067 - OLIKW.
    You can understand the situation.
    Now there can be three aspects of it. Please check my points below and suggest if I am wrong.
    1. For update group 000015, this table S067 is updated for delivery of fill up in standard SAP but never adjusted in after that and also there is no standard program for correction. So in this case either we have to forcefully update the table (by exit or by program) though it should not be the practice as there may be some inconsistency or we should discard this process.
    2. We have to deactivate the credit check at consignment fill up level and to carry with credit check at consignment issue level as in that case under update group 000015 , after creation of commercial invoice posting receivables got updated with modification of open sales value by diminishing that much value.
    3. We have to withdraw the credit check for case of consignment agent.
    please suggest if any other aspect keeping in mind that we have to try our best to reach the requirement of credit check at consignment fill up stage as material should be blocked for delivery before vehicle starts from factory gate.
    with last effort if there is really no way , so we have to go with standard SAP.
    Regards
    Indranil

  • Adjustments for Sales Excise Invoice

    Hi,
    Our client is Cement Industry, at the time of budget changes, we posted around 1000 nos. of sales excise invoices with excess amounts, now we want to pass JV for that GL accounts because of that we are unable to do J2IUN. Will anybody tell me where to pass JV for sales excise invoice with effecting utilisation also. This is very urgent issue.
    Regards,
    Prasad

    Dear Goutham,
    I will explain u clearly, at the time of budget changes our SD consultants done some changes,it taken too much time to complete, but our client was not able to stop the despatch so with wrong values around 1000 nos. of excise invoice posted, amount difference are around 28 lacs. Now they want to adjust the amounts through JV, which should effect in J2IUN also. Accouting document generated at the time of Excise Invoice is
    Excise duty paid             Dr
    Cenvat payable               Cr
    Cenvat payable Cess      Cr
    Cenvat payable Hcess    Cr
    I tried to post consolidated amount in J1IH but accouting doc, genereted is
    CENVAT clearing        Cr
    CENVAT InpBED        Dr
    Ecess CENVAT          Dr
    High Edu  Ecess         Dr
    Because of this it is not updating Original entries and also in J2IUN. Now they are unable to run J2IUN for Mar'08. Please help me what to do.
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    Prasad

  • Adjustments for Sale Excise Invoice

    Hi,
    Our client is Cement Industry, at the time of budget changes, we posted around 1000 nos. of sales excise invoices with excess amounts, now we want to pass JV for that GL accounts because of that we are unable to do J2IUN. Will anybody tell me where to pass JV for sales excise invoice with effecting utilisation also. This is very urgent issue.
    Regards,
    Prasad

    Dear Prasad,
    As far my understanding the excise law, the excess amount paid by you can only be refunded by excice office.
    In J2iun the entries are posted thru sales invoice or invoice cancellation.
    The utilization amout increases when we create excise invoice thru J1iin and reduction in utilization is thru invoice cancellation.
    So in my opinion , you cannot reduce the utilization by passing a JV.
    Reward points if answer is useful to you infutrue as the reply is late ,
    regards,
    subodh

  • Smartforms of Sales Excise invoice

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    Hi
    In NACE  Check Application     V1  Output Type     JEXC
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  • REPLENISMENT IN CASE OF CONSIGNMENT SALES

    Dear Gurus,
    I am facing a requirement where in I need to perform consignment sales. the issue lies when I need to transfer the left over stock directly from one customer to another. say for eg. company x has two customers A & B.
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    along with addition of other 50 units. (so the total stock send to customer B will be 30 + 50 = 80 units)
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  • Consignment sales commision

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  • Can a Third-Party Consignment Sale Exist?

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  • Difference in partner functions in normal and consignment sales

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  • Consignment sales

    Hello guys...
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    regards
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    Consignment stock process
    1.     In the consignment stock process, a business allows stock or materials to sit at the customer’s site or allows stock that is reserved for the customer to sit at its own site. This is done through an agreement that the customer will sell or consume as many of these materials as he can. Only after the customer has consumed or sold anything will the business issue an invoice. Should the customer not want to sell or consume any more material he informs the business and it returns their stock.
    2.     All requirements transferred from consignment sales orders to materials planning are transferred as individual requirements. This occurs regardless of what availability checking group indicator is set on the respective material master.
    3.     Consignment stock is monitored in our system by individual customer and material. This consignment quantity is controlled separately from the available stock for standard sales orders. This type of stock is refereed to as SPECIAL STOCK. Other forms of special stock are
    RETURNABLE PACKAGING.
    4.     Special stock indicators are allowed for a schedule line category only in case of CI and CR and not for CF and CP.
    Consignment Fill-Up - CF
    1.     The business delivers stock to a customer on consignment. This process is called consignment fill-up. Its uses the document category C (VOV8) and a different number range to treat the consignment sales process different from the standard sales cycle.
    2.     The consignment fill-up uses the standard sales document type KB/CF, delivery type – LF; no billing document type or invoice is relevant at this stage as fill-up is not considered as a sale.
    3.     The item category for consignment fill-up is KBN, (VOV7); schedule line category – E1/E0; Movement type – (631) – is the key that at the time of goods issue, posts the stock into a special consignment category in the delivering plants stock for that particular customer and material.
    4.     The most important thing to note at this stage is that CF doesn’t have PRICING, BILLING, CREDIT CHECK, COST DETERMINATION, SPECIAL STOCK.
    5.     Copy control must be set at item and schedule line levels. And a delivery block could be set for sales document KB (VOV8)
    6.     After customising entries, create a consignment fill-up order (VA01 – doc.type CF) followed by delivery and goods issue. (no billing is done for fill-up).
    7.     VA01(CF) – VL01N (DELIVERY LIST) – LT03 (TRANSFER ORDER) – VL02N (PGI).
    8.     Note: No billing is done at this stage.
    9.     To view the stock on consignment for this customer go to MB58 or MMBE
    10.     An automatic credit check is done on the open items with consignee that is unpaid. But a manual credit check should be done on consignee before every consignment fill up is done.
    11.     When a consignment fill up is carried out, the system checks the available quantity of stock in the delivering plant to see if this quantity  can be met ……….when the system proceeds with a consignment issue or consignment pick up, the system checks the stock represented at the customers site to see if there is an available quantity left.
    12.     Once the consignment fill up is done, the customer may consume the material or sell them. He then informs us about the number of units consumed.
    Consignment Issue – CI
    1.     In the consignment process, the customer only pays when he sells or consumes the materials. The business issues the sale to consignee via an order type CI (or) KE. This is again a standard sales document type with category C. Delivery type LF, delivery related billing type – F2
    2.     Order type – CI; Standard item category – KEN, Schedule line category – C1/C0 (which is relevant for delivery); movement type – 633.
    3.     In case of consignment CI – PRICING, COST DETERMINATION, BILLING, CREDIT CHECK, SPECIAL STOCK are taken into consideration.
    4.     For consignment special stock indicator is W.
    5.     VA01 (CI) – VL01N (OUTBOUND DELIVERY – YOU CAN DO PGI HERE ITSELF) – VF01 for the quantity consumed. (INVOICE – F2)
    6.     Once PGI is posted, the consumed stock is reflected in the consignment stock, which can viewed either in MB58 or MMBE.
    Consignment Return – CR
    1.     The consignment return is sales process flow that represents faulty materials or the product consumed or sold by the consignee. This process should not be confused with the pick up of materials.
    2.     The consignee puts the faulty stock back into the consignment stock and requests either a credit note or free of charge subsequent delivery in return. It is to be noted that faulty items are not returned to main stock at the plant, instead they are returned to the consignment stock – to make balanced inward and outward movement of stocks.
    3.     The sales document category is H and a returns document should always have different number range for the visibility of returned items.
    4.     It is also suggested to promote a special shipping condition for returns process that causes a special shipping point that can used only to process return deliveries. In addition to that, all returns documents can be made to have mandatory reference procedure from the billing document for a clear visibility. (M in case of reference from billing)
    5.     Do not forget to assign to reference document in the copying control rules and make sure you select the update document flow in the copying control rules.
    6.     sales document type – CR; delivery type – LR (though the actual stock is added to the consignment stock and not the actual stock in plant, the consignee will call to pick up the unused faulty goods and simply consume the rest of the material, and thus the consignment stock will physically increase); billing type (order related billing relevance in VOV7)– RE ; item category – KRN ; schedule line category – D0 (no MRP and availability check required for stock returns as we are receiving stock back into our plant); movement type – 634; special stock indicator – W
    7.     transaction flow = VA01 (CR) – VL01N ( post goods receipt) – VA02 (remove the billing block) – VF01 (credit for returns)
    8.     It is suggested to have a billing block in order to check if the credit is authorised and valid. Thus assign the standard billing block is 08.
    Consignment pick-up
    1.     The consignment pick-up process is the last and final process linked to the consignment procedure. It is responsible for picking up of faulty material as well as the picking up of excess materials not yet consumed by a consignment issue.
    2.     Sales document type – CP; document category – C; item category – KAN; schedule line category – F0/F1 ; movement type – 632, delivery type – LR and no billing is necessary as the ownership of the goods does not change.
    3.     Depending on the business type, it may be necessary to have a mandatory reference for a consignment pick-up from a consignment fill-up order, which will restrict all pick ups without proper authorisation.
    4.     Indicate document flow in the copy control rules.
    5.     Like in any other returns process, a specific returns shipping point is suggested to be determined to bring the goods back from the consignee’s place to the plant.
    6.     No invoice is necessary, as the goods are not changing ownership. The goods issue is the trigger that transfers ownership from the business to the consignment consumer.
    7.     The standard schedule line category is F1, where the item is relevant for transfer of requirements and availability check is done on customer’s consignment.
    8.     Transaction flow – VA01 (CP) – VL01N (PGR) – after goods reciept if you proceed to stock overview screen, you will notice that the material available at the customers consignment has decreased by the quantity picked up.
    REWARD POINTS IF HELPFUL
    Regards
    Sai

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