Excise problem in subcontracting

Hi,
In subcontracting scenario there is no need to pay excise if sub contracting vendor returned the material .
but if it is exceeded 180 days the palnt has to pay exise .
in this scenario what are configuation settings should be done
in cin.
can any body explain me in detail
Regards
Venkat

Hi,
If the vendors not returned the material in 180 days you will have to reverse any excise credit that you posted when you purchased the materials.
In the case of materials that you have manufactured in-house, you will have to post credit entries to the extent of the CENVAT rate of the assessable value of the materials.
Go thru the below link
http://help.sap.com/saphelp_erp60_sp/helpdata/en/09/ebf138cdd78a4be10000000a114084/frameset.htm
reg
Durga
*assign points if the info is useful

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Good receipt problem for subcontracting purchase order

Good receipt problem for subcontracting purchase order
with account assignment type E.
After update to ECC 6.0. Do good receipt for subcontracting purchase order with account assigment 'E'.The system show the error message(KI235)----Two cost elements (Change in Stock (Subcontracting)&Outside processed fee) haven't CO account assignment.but the field status for sale order is option entry , when I default cost center for the cost element in OKB9.the system post the material document and generate the following accounting document.
Doc.Type : WE ( Goods receipt ) Normal document
Doc. Number    5000056065       Company code    1000         Fiscal year     2007
Doc. date      2007.12.04       Posting date    2007.12.04   Period          12
Calculate Tax
Doc.currency   HKD
tm PK Account    Account short text   Tx Cost Ctr   SaleOrder               Amount
1 89 13500000   Stock-Work in proces                   1007823 10             274.4
2 96 21210010   GR/IR Clearing                             1007823 10             205
3 91 41010102   Chg in Stock(Subcon)    10901099 1007823 10            274.4
4 86 41031000   Outside processed fe     10901099 1007823 10            205
5 99 13500000   Stock-Work in proces                    1007823 10            69.4
6 81 41010101   Cost of Prod (Subco)                      1007823 10           69.40
My problem is:
When use MIGO to do good receipt for subcontracting Purchase order, for consumption account((Change in Stock (Subcontracting)-41010102&Outside processed fee--41031000) ,why the system dont recognize the sale order filled as CO account assignment?

Dear fanny chen
Did you get a solution for your open question?
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Hi,
I am facing problem in subcontract challna reconcillation with J1IFQ
Subcontract PO created for Finish material 'XYZ' qty 250 Nos   one raw material 'ABC' one qty required for each finish good   but in PO   user have added 450 quanity of raw material now for Finish product for quanity 250 three Grs made
1 : 126
2:   61
3:   63
but the consumption of Raw material in GR is showing as 227,110,114 this becomes 451 now the reconcillation is done for first two GR aganist which the raw material assign is 227 + 110 = 337 now as only 113 qty of rm balance now we are doing reconillation for third GR system is giving error mesage 8I574
Material 1363 is not assigned fully, short by 1.000 NO, and it is not allowin gfor reconcillation also as the uinvocie verification is already done for the GR so insted of reversing all how to close the challan.
regards,
zafar

Dear,
Here is my understanding, that is if you give 250 nos to subcontractor, he will process and give you 250 nos. This should be you actual PO. Hence if you do GRN for 1 Nos, then consumption at vendor end (543) will also be made for 1 Nos. But, you said your user has maintained the input qty as 450 nos. And subsequently you have also done the GRN's.
If my understanding is correct then do the following:
Delete the material document assignment, which you have done for the first two GRN numbers. In J1ifq.
so that the challan balance qty and status will go back to its original position.
Then cancel the GRN's. All the three. So that all the stocks will go back to vendor location.
Correct the Input- ouput ratio in the purchase order as 1:1. Then do the GRN again and do the reconciliation.
Pls revert if you need anymore clarification.
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VJ

PROBLEM IN SUBCONTRACTING P.O

DEAR CONS
I CREATED A SUBCONTACTING P.O & IN THE COMPONENTS I entered the components & as well as the scrap from vendor (free item) . The system does not post it. gives a message Update control of movement type is incorrect (entry 101 _ X Q B _ V)
Message no. M7226
Diagnosis
The system could not find entry 101 _ X Q B _ V in any of the movement type control tables.
Procedure
Cancel current processing.
Contact your system administrator.
Action to be taken by the system administrator
Check in Customizing for Inventory Management under Copy, Change Movement Types whether the entry is contained in the Update control view for the movement type.
If the entry is missing, proceed as follows:
 For standard movement types, this means that the given process is not supported using the present data combination. Do not create any entries without prior arrangement with your SAP consultant. Otherwise, incorrect postings may result.
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pl.solve this problem & gives step by step by which i can make setting.
thanking you
nirupama

Dear Nirupama Swain,
Frist check ur Stock overview Child material stocks to issue the material to subcontracting vendor.
Maintain the BOM with T.code CS01
Pls follow the steps for Subcontracting cycle:(without payment of Excise Duty)
1. A Subcontracting Purchase Order is raised on the Vendor with Item Categery 'L'
2. The Materials are transferred to the Vendor through a 541 Movement Type with T.Code MB1B
3. A Subcontracting Challan is created.
4 The Semi finished Material is received from the Vendor through 101 movement. A 543 movement occurs for the components
5. The subcontracting challan is reconciled.
6. The challan completion process is carried out.
7. Invoice Verification for the vendors invoice occurs
With regards,
B.Ravindranath

Excise problem in case of free items

Hello,
My user is having following issue.
Vendor has sent 3 items, out of which one is free sample. But on that excise has to b paid by us (which is approx 3000rs). So when user is trying 2 do GR, first 2 items dont hav any problem, but after checking ITEM OK tab in case of 3rd item(which is free sample), system shows run time error (A value does not fit in a calculation field.)
What may b the remedy for it. How 2 handle this?
Thanks.
Edited by: sapsarang on Oct 29, 2009 6:24 AM

First if you don't want to take credit of the free sample then follow the below procedure:
1. Do the GRN for all the three item and for the free item in the excise tab at the item level select the material as non cenvatable. Just remember to add base value of the item
2. If you want to capture the Part1 entry then just do the normal transaction and while posting the excise with J1IEX just remove the excise duties for the free item.
3. For paying the vendor the excise amount, just do subsequent debit in the MIRO and in the details tab add in the unplanned delivery cost the amount that you want to pay for the excise duties
Second case if you want to take credit of the duties:
1. Do the Normal GRN process, add the base value and excise values for the free item.
2. Post the Excise duites with J1iEX.
3. The with the account entry you can settle the excise payment
Hope this will help you
Enjoyyyyyyyyyyy
Akshit

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.Y

Hi,
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)?

Problem in subcontracting Po

Hi gurus,
I want to process some material fromsubcontractor. Problem is that material is going 2 subcontractor in Tons and coming in pieces and scrap is also returning to company. . So what process shud I follow so that all material which I sent to him shud be reconciled. e.g. I m preparing subcontracting PO for SF1111 with 1000 quantity. In BOM of SF1111, for one piece it requires suppose 3kg raw mat. So system will ask me to send 3000 KG, but physically it requires 3300 kg (considering scrap), so I made changes in PO, (component provided, I made it to 3300). So now system can transfer 3300 to vendor. Can u guide me for the rest of the process while receiving material so that all material shud be reconciled. Shall I hav to maintain alternate unit for SF1111?
Thanks

Hi Sarang,
Go through the following steps.
1. Create a Material master for Scrap material say XXXX.
2. In BOM, maintain the Material XXXX in negative quantity,
3. Now follow the regular process of subcontrating.
4. When you want to inward the scrap material from the subcontractor end, first receive the material XXXX with the movement type 545 ( This will make the material available in material provided to vendor stock ).
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Dear All
W have internal order budgeting for consumables.whenever we make purchase order , the account assignment category is f and we purcahse against the particular internal order.
when G/R is done the consumable material gets cosnumed against the particular interla order. ie goods receipt and the issue against the internal order with same movement type.
here is the problem
Whenevere G/R is made the part 1 register(country india version) gets updated .
But because of goods issue against internal order , the part 1 register shows both the receipt and the issue . so whenever the excise invoice is made through j1iex thesystem shows that part 1 entry is not vailable.
In the part 1 register printout shows the receipt and the removal of goods.
as per the excise regulations the part 1 entry sholud be there for the particular material. please suggest how to avoid the removal entry in part 1 register. only receipt has to be updated in the part 1 not the removal ie goods issue.
please suggest how to overcome this issue.
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Problem while subcontracting with acct assgt category 'Q'

Hi,
We have a Subcontracting PO with item
category 'L' and account assignment
category 'Q'. While goods reciept
against PO, for 543 it is taking project
stock(Q) from storage location instead
of vendor stock(O).Please provide the
solution(with CIN details, 57F4 challan creation and reconcillation)
or is there any other process to handle this?
Regards,
Shiv

Dear
you kept account assignment catagory blank & process ahead.
may ur problem saolved
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Dear All,
My requirement is that during Subcontracting Challan creation System should pick assesable value of material from existing excise Invoices & not from Assesable Value maintained in J1id.
I have done all subcontracting related configurations. I am not maintaining assesable value in J1id.
Now while creating subcontracting challan system is not showing existing excise invoices when i click excise Invoice tab & passing a warning msg that assesable value of material is Zero.
Is it a bug or lack in configuration? Need experts advice.
Thanks
Nitesh

Hi,
You have to always maintain assessable value of the components to be supplied to subcontracting vendor in J1ID and also excise rates for the chapter ids are linked with these components. So, in J1IF01, system will take assessable value as excise value base value and calculate excise duty based on tax invoice, as per my knowledge it cannot be linked with existing tax invoice.

Excise Problem

Hi guru's
i have one problem after the process of ME21N,MIGO,MIRO,Extraction of Register iam trying to do Post the excise invoice but the system giving the error is company code is not defined,
Till the extraction and print priview part is fine, iam able to see the excise amount and excise quantity in j2i6
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Regards
srinivas

Pls provide us the error message no # which you are getting, with SAP version details.
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Suresh

Excise problem with internal order

Dear All
W have internal order budgeting for consumables.whenever we make purchase order , the account assignment category is f and we purcahse against the particular internal order.
when G/R is done the consumable material gets cosnumed against the particular interla order. ie goods receipt and the issue against the internal order with same movement type.
here is the problem
Whenevere G/R is made the part 1 register(country india version) gets updated .
But because of goods issue against internal order , the part 1 register shows both the receipt and the issue . so whenever the excise invoice is made through j1iex thesystem shows that part 1 entry is not vailable.
In the part 1 register printout shows the receipt and the removal of goods.
as per the excise regulations the part 1 entry sholud be there for the particular material. please suggest how to avoid the removal entry in part 1 register. only receipt has to be updated in the part 1 not the removal ie goods issue.
please suggest how to overcome this issue.
With Regards
balaji

Hi Balaji,
Standard SAP CIN config provides agisnt which all movement type the excise invoice are gererated. Kindly check your movement for Goods Issue and remove config.
Node: SPRO>Logistics - General>Tax on Goods Movements>India>Incoming Excise Invoices-->Specify Which Movement Types Involve Excise Invoices
Regards,
Narasimha Rao

Excise Problem - 2nd Stage Dealer !!

Hi,
Our client buys material directly from factories or from vendors.
Case1.) when they buy from factory then excise calculation has no problem.
Case2.) when they buy from 1st stage dealer or 2nd stage dealer then excise calculation has a problem. the dealer increases the price of item after adjusting his profits and passes on the original excise to our client. when making a PO excise gets calculated on the 2nd stage dealer price ... but it shud not happen tht way... it shud be the same as passed on from the factory to the 1st stage dealer and then to 2nd stage dealer. though we have maintained "manual excise" condition in pricing procedure still there is a mismatch during MIRO.
Any suggestions ???
TAXINJ Procedure is being followed

In Migo 105 u can capture&/ Post excise invoice.
Use manual excise cond. in pricing
or
in j1iex use mrp tick
in Delear case u will have to maintain all the details as per raw material case
only diffence is in the % of bed ecess and secess put 0 instade of 16 2 and 1
at the time of po u know that u vendor will give u material at say 100 Rs increse of excise which u dont now and 4 % vat on it
So u r po will loke like 100 basic
bed 0
ecess0
scess 0
vat 4
total 104
now whe u do GR
u come to know u have 8 bed 1.6 ecess 0.8 sccess
at the time of gr in Excise tab value
put the excise base as 100-8-1.6-0.8 = 89.6
and in bed 8
ecess 1.6
secess0.8
and in header tab of excise in miscellaneous tab tick MRP indicator
save ur part one and 2 posted
then do the miro
on item line it will show 100 as amount change it to 89.6
click on calculate tax
and ur excate payment of rs 104 will be done to vendor
this the the correct process of Delear case
Hope this is help full
Reward if usefull
Refer
Reservation deletion after specified period

Problem in Subcontracting Purchase

Hi,
We are carrying out subcontracting with scheduling agreement.Material
Batch managed.
We are facing problem while inwarding material through MIGO.
Eg: Subcontracting scheduling agreement, Parent material 'X' 100qty.
Delivery Scheduled for 60Qty.
2 child material - A and B.
1X = 1A+1B
GI - 541 mvmt done for A = 60qty and B = 50Qty.
Stock at subcontracting vendor, A = 60qty and B = 50Qty.
Since delivery was scheduled for 60qty, MIGO qty will be 60qty when
Purchase reference is taken.
Idealy system should allow to make MIGO for only 50qty as one of the
child component was issued less. But system is not throwing any error
message and allowing to save the document for 60qty inspite of one of
the child component being less.
I could not find any setting to set an error message.
Pls do the needful.
Regards,
Radha

Hi Radha,
As mentioned by ramesh, check out for negative stock.
and
than, define Standard Bill of Material for the parent material in CS01.
And write a logic such that system should check that at the time of saving the document whether the components used (543) are as per the ratio of standard Bill of Material.
Take the help of either of the exits mentioned below with the help of your technical consultants.
MB_CF001
MBCF0011
MBCF0010
MBCF0009
MBCF0007
MBCF0006
MBCF0005
MBCF0002
Hope this helps you out.
Regards,
Arpit
Edited by: Arpit kalani on Jul 21, 2009 10:08 AM

Excise Duties in subcontracting challan

Dear Friends
I am creating subcontracting challan57f4 in ref to material transfer document.MY query is, should duties also appear while creating subcontracting challan i my case this is not happening.
Can anybody help me on this issue
Regards
VIvek

Hi,
The excise duties should not appear in the Sub-Contracting challan. Because, you are creating the excise challan for sending the excisable material outside to your sub-contractor for processing without payment of duties. Hence it is the right thing that excise duties are not appearing in your challan.
Regards,
Prashant Kolhatkar

Excise problem in subcontracting

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