Excise posting of scrap material in subcontracting process
Hi expert,
Suppose we have send 10.000 mt of semi finished material having material code xxxx for job work to AAA Vendor and will receive back 9.500 mt of material having material code yyyy with the invoice of job work charges. The difference of qty (10.000-9.5000=0.500) in material is due to the wastage in the form of scrap. Now we have to deposit the excise duty on scrap (wastage) to the excise department because the vendor is selling this scrap to another customer, where as we have not charged any excise duty while sending material for job work. For depositing excise duty to the dept we have to issue invoice for the same qty to the vendor whereas scrap is already with the vendor. Also we have to book the vendor invoice for job work charges on the material received.
Regards,
Santosh
hi,
there are some ways to solve this issue
if u know the scrap qty before sending the material to vendor, put -ve qty in BOM in the name of scrap material number, whenever u receive the parent material scrap also get into account of our inventory as well as excise books in terms of value. further you need to do 542 for scrap material alone for qty updation in excise and inventory.then we can raise the sale invoice against that vendor and sale the scrap with TCS (Tax collecting from source)
try this iam sure it will work
Regards
Sridharan
Similar Messages
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What about scrap generated dooring Subcontracting Process
Hi all
Good Morning
In Subcontracting Process(i am sending Components to vendor).What about Scrap generated, how can i enter dooring Migo - Goods Receipt
Regards
Manjuhi
frist ly u have to maintain the scrap quantity in -ve value in the subcon po then do the normal process of gr and at time of gr give the actual quantity of the scrap
but at this stage the system will show the scrap quantity to the subcon stock ,so to make it to own stock do following
1.
Scrap
What kind of scrap we are speaking about?
a) If you pay the scrap you can get rid of it by MB1A + 551 + 'O' directly from SC vendor's special stock (I mean you can scrap the raw material (subcon-component)).
b) If the scrap was delivered by your to SC vendor via MVT 541 you can use MB1B + 542 to bring it back. It may happen that the raw material was delivered by one of your other vendors to your SC vendor (in this case the goods got to the special stock via MVT 101 O) - if the situation is this you can create a return delivery (MIGO + PO reference + MVT 122) and ask for replacement. You can also use MB1A + 551 + 'O' or MB1B + 542 - it depends how you want to handle the situation from business point of view.
2.
by-product
You write the by-product with negative qty in the BOM or directly into the component list of the subcon-PO (item level, material data 'tab' in ME2*N). This will be booked by 545 to special stock and if you want to receive this material you can use MB1B + 542.
the simple process steps are
1> create a bom tcode cs01 and mention the components and the scrap material but with -ive quantity
2> creaet a info record with the subcontracting category tcode me11
3> create a po with item category L tcode me21n
4> do the good reciept tcode migo
5> do the subsequent adjustment tcode migo but the display variant should be subsequnet adjustment
6> do the gr of scrap tcode mb1b movement type 542
7> do the invoice
regards
kunal
award if helpful
Edited by: kunal ingale on Aug 9, 2008 7:45 AM -
Deduction of Excise duty of Scrap Material in Depot
Hi,
Can anyone suggest how to reduce the excise amount of scrap in the depot scenerio(from mm point view)
Regards,
RuWe need to maintain the movement type for SCRAP for RG1 ragister. or whaterver ragiser as per ur scenarios.
and those entried and prod entried will nullify each othere,
or you can avail excise retrun on total scrap, by having the entris in the register (for that perticular movement type)
Regards,
Pravin Mukkawar -
G/L POSTING TO SCRAP MATERIAL
HELLO EXPERTS,
My bussiness scenario is like this...
I have suppied 100 kg of raw material to my vendor. now my vendor supplied 100 kg of SFG (semi finished goods) .
from the 100 kg SFG, 5 kg material is dameged and my vendoe not willing to rework on it.
So I can't send it to my vendor using MVT. TYPE 122 against purchage order.
so I have to scrap this 5 kg of SFG, and raise a DEBIT NOTE to my vendor.
here i go for the same
good issue-> others-> mvt. type 551.
here in details, i enter, material, quantity, vendor.
than in ACCOUNT ASSIGNMENT TAB it asking to fill g/l account and cost centre.
here when I give vendor g/l account it is giving error
No direct postings possible to G/L account 611130
Message no. M7059
Diagnosis
No direct postings can be made to the G/L account (because it is a reconciliation account).
so can anybody suggest me which g/l account and which bussiness area i have to put there.
after that what should be my setting in MIRO.
kindly reply me with some suggestion.
regards.
raghuWHEN I POST IT MY G/L ACCOUNT AND COST CENTRE...IT IS SHOWING FOLLOWING ERROR.
Fld selectn for mvmt type 551 / acct 400032 differs for Vendor goods movement (014)
Message no. M7093
Diagnosis
Comparison of the field selection strings from movement type 551 and G/L account 400032 has revealed that there is an incompatible field selection combination at one or more points.
Field for which the field selection is different: Vendor goods movement
So tell what can i do now???
regards raghu -
Is 543 movement possible for bulk material in subcontracting process.
Dear All,
I created a sub contracting PO, with the bulk material indicator being ticked in MRP 2 view for the parent material.
Now at the time of Making GRN, i can not see the 543 movement for parent item (which is sent to vendor for processing via 541 movement).
Please help. Is this a standard behaviour of the system. ??
Thanking you in anticipation.
Regards,
Chetan.Dear All,
I created a sub contracting PO, with the bulk material indicator being ticked in MRP 2 view for the parent material.
Now at the time of Making GRN, i can not see the 543 movement for parent item (which is sent to vendor for processing via 541 movement).
Please help. Is this a standard behaviour of the system. ??
Thanking you in anticipation.
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Chetan. -
Options in excise tab ( subcontracting Process)
HI,
Subcontracting business process
i am getting No excise duty, Create RG23D, and create RG23D for existing excise invoice options in Excise invoice tab at MIGO.
i have checked above settings in the system...but still the same error
please suggest
Regards,
GirishHi,
If you are making a process of Subcontracting , then you should be able to get Refer Subcontracting Challan in MIGO , for that in CIN--> Plant Setting you should REMOVE Tick from Depot against that plant also check that for the Excise Group if it is a subcontracting process Depot Setting should NOT be there.
If you put a tick against Depot in CIN --> Plant Setting and Depot Setting for the Excise Group, you will get RG23D tabs in MIGO
Regards,
Vikas -
Migo for subcontracting po- Excise invoice is posted later to material docu
Dear all,
While we are doing migo for sub-contracting PO we are getting an error like this Excise invoice is posted later to material document.
process
1. Create subcontracting PO.
2. Issue material 541 MVT.
3. Create sub-contracting challan- dated 8-8-2010.
4. Migo date 8-8-2010.
while entering subcontracting challan no & year, error messege is coming as Excise invoice is posted later to material document.
Pls give solution.
Thnaks & regards
madhuHi,
You will have to post the MIGO at least one day after the creation of Excise Challan.
Regards,
Prashant Kolhatkar -
SubContract Process with Excise Flow
Hello All,
Can anyone please explain me in Detail Subcontract Process with Excise flow considering these...
1. Subcontracting without payment of Excise duty
2. Subcontracting under full payment of Excise duty
and if scrap is to generate under process. So how to maintain that in PO. and Later how to reconcile that in Excise flow..
I will be very thankful if anyone help me ...
Abhinay....hi,
SUBCONTRACTING:
To create Subcontracting challan:
J1IF01 - Creating sub contracting Chelan
J1IFQ - Reconciliation for Chelan
J1IF13 - after receiving all items
Subcontracting without Payment of Duty
Creation of Subcontracting PO (ME21N)
Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)
Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)
Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO) {GR with 101 and auto consumption of components with 543 movement}
Reconciliation of Subcontracting Challan (J1IFQ)
Completion of Subcontracting Challan (J1IF13)
Generation of Annexure IV (J1IFR)
Note: - In this case, you have to maintain the Assessable Value for the Components to be supplied to Vendor in J1ID and also Excise Tax rates for the Chapter IDs linked with these components. So during J1IF01, system will take the Assessable Value as Excise base Value and calculates the Excise Duties by taking Excise Tax Rates.
Subcontracting under Full Payment of Duty
Creation of Subcontracting PO (ME21N)
Transfer Posting of Components to Subcontractor (MB1B/ME2O/MIGO)
Creation of Outgoing Excise Invoice w.r.t. Transfer Posting Document (J1IS) - Used to send the components to Subcontractor's. Here 57F4 Challan is not created.
Master Data
MM01- Material Masters for Components and FG
XK01 - Vendor Master (Subcontractor)
CS01 - BOM for FG
ME11 - Purchase Inforecord for Subcontracting
Regards
Priyanka.P -
Excise treatment during subcontracting process with excise duty
Dear all,
Iam aware of the subcontracting process STEPS, but my query is while dealing with Excise in Subcontracting process, will the Excise duties captured in J1IS(create outgoing excise invoice) be RECONCILED with excise duties captured in J1IEX(subcontractor's excise invoice). As per my scenario both the duties are different unlike reconciliation process in the process without excise duty. My questions are
1.Do both excise duties during j1is and j1iex should be same or can it be different (since in j1is we capture Duties on raw material's assesable value where as in j1iex we capture duties semi finished goods given by sub contractor.)
2.Kindly eloborate treatment of excise duties captured in these steps.
Revert if you didnt understand this scenarion.
Regards,
Sravanthi.YHi,
57fc challan will be issued when we send raw materials to subcontractors WITHOUT EXISE DUTY.Hence not relevant in my case. But my case is WITH excise duty.we send subcontractor the excise invoice by using j1is. later he will process these raw materials and will give back the semi finished goods along with excise invoice(which we will capture n post using j1iex). so my question will excise duties differ in j1is(excise invoice TO subcontractor) and in j1iex(excise duty FROM subcontractor)? -
Subcontracting process to scrap expired materials??
Hello experts, I have following situation at the client and I need to find a solution ASAP.
(1)Client wants to scrap expired materials using Third Party Company.
(2)I am thinking of using SAP Subcontracting process to execute.
(3)I did the goods issue to the Third party Company.
(4)Now I donu2019t want any materials or components coming back at the time of GR, other than the service from the Third Party Company for scrapping of the materials. How to execute this process???
Any advice is greatly appreciated. Thank you.Hello experts, I have following situation at the client and I need to find a solution ASAP.
(1)Client wants to scrap expired materials using Third Party Company.
(2)I am thinking of using SAP Subcontracting process to execute.
(3)I did the goods issue to the Third party Company.
(4)Now I donu2019t want any materials or components coming back at the time of GR, other than the service from the Third Party Company for scrapping of the materials. How to execute this process???
Any advice is greatly appreciated. Thank you
Here is what I think:
1) in case we are sending the material to the third party then why it is not a direct selling of the scrap? It can be treated as a scrap selling to the third party as a customer.
please explain me the scenario as why the third party is required .It is interesting one to solve then -
Raw Material (excise duty paid) scrapped at the stage of Production.
Dear Experts,
Excise duties applicable (and paid) raw Material is scrapped due to damage in Production. This material is not returned to vendor.
Excise duty has been paid, Excise entries are updated.
As per the central government excise rules, how this material is to be treated. Also please explain SAP CIN point of view. I have to run this business process in SAP.
Thanks in AdvanceHi,
U can srap that material and u can sell the scrap at that time u dont need to pay the excise duty applicable on to the Raw material. But the excise duty liable on Scrap only.
u cannot writoff the Raw material once used for prodution.
regards,
sujit -
Scrap of material in subcontract and Excess material issue
Hi,
I want to know is there any setting such that , for mfg. a finish good material, some qty. of raw material is scrap the qty which is scrap i have add as negative qty in BOM and but after making the GR for Finish material , all positive qty. are consume by deduction of qty which i have mention as negative but scrap is not done automatically, i am doing scrap sepearetely so it is possible whenevr i make the GR for finish good material then , the material for which i have maiatain as negative should get automatically scrap, as the raw maetria are consum using 543 materials,
second thing the negative qty of material i have mention in BOM of finish good but insted of maiatining -ve qty in BOM is it possible to add the excess qty in PO as -Ve qty because when we select the finish material in Subcontract PO all BOM components appear in PO but there there is no option to add some addition material in PO.
can we make the above settings
regards,
zafarHi,
Thanks for your reply.
Just want to know one more think, as in subcontract we are issue the material as per BOm, as suppose, total qty of one raw material required is 4500, which is to be consume for making the finish good but due to std. packing of raw material i want to issue the qty 5000, but while making the GR only 4500 should be consume and the reamining 500 should be shown as in vendor stock after getting material back we will take that as 542 movement.
regards,
zafar -
Account entries with excise & without excise for Subcontracting process.
Please let me know the Account entries with excise & without excise for Subcontracting process.
Regards
PBRhi..
check these links...
Accounting entries for subcontracting
and
Subcontracting process with excise duty??
It may help u..
Thanks -
Excise document is posted later to material document Messaage no.81576
hi,
at the time of reconciliation of sub challan i am getting this message i.e error message.
in the material document there r two materials which has to be reconcile for that i have entered two challan .Hi,
The excise posting date should be equal to or less than material document posting date.
Please check your excise document posting date and material doc posting date.
Regards,
Bharat. -
In subcontracting process same material to come back from vendor how?
hi
in subcontracting process i want to send x material for processing purpose and same material is going to come back tell me the process how can i do
chandrahii
For ur scenario, u have carried out external service management process.
Because , subcontracting is nothing but , u have to X material and receivea as A materia or some different material.
SO if u r going to receive the same material , u can do it as service process.
Thanks
SAP-MM
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