Job Work with Excise

Hi
Request you to please guide me in the following scenario:
We send 50 Kg of Blue Ink to our Vendor. The Vendor mix one u201CPaste Materialu201D with the blue Ink and produces Red Ink and send back to us.
Here the Vendor is charging 100/ Kg for the processing the Ink along with 10.3% Service Charge.
On the u201CPaste Materialu201D, he charges us 10.3% Excise, Cenvatable, and Vat 5% .
How to handle the u201CPaste Materialu201D in this process? Will it be a part of subcontracting PO?
Also request you to please send the steps in subcontracting process related with Excise Material. I am aware of the generic subcontracting process. Excise I am doing for the first time.
Regards,
PK

Thanks a lot.
I got the clarity to some extent.
I have also done the GR with SC Vendir Indicator Check On. I assume that this line item will with Excise & Vat Tax Code. And separate Invoice will be done for this. During GR we need to select Capture Excise Invoice.
One more thing, please guide me in Excise Configuration related with Challan ( T Code j1if01)
Right now we have got the following config done (by my ex-consultant)
Excise Registrations
2
Plant
1002
Excise Group
E2
Series Groups
21 : 1002-PLANT (UNIT 4) DOMESTIC
22 : 1002-PLANT (UNIT 4) EXPORT
23 : 1002-PLANT (UNIT 4) DEEMED
Maintain Subtransaction Types
IP : IMPORT PROCUREMENT
ST : STOCK TRANSFER
Subcontracting Attributes
E2 : 57FC : 01 : 57FC CHALLAN
When I am creating a Subcontracting Challan using T Code j1if01, the system is asking for Excise Group & Series Group.
Do we need to create new Excise Group & Series Group for subcontracting? Also which Object will be used for Excise Numbering (T Code SNRO)
Please guide.
Regards,

Similar Messages

Job Work with Payment of Excise Duty

Dear Gurus,
We have done full process of job work without payment of excise duty. but we also want job work with payment of excise duty. we didn't found any way to do this job.
When we make subcontracting entry with 541 mvt type and then make its excise challan with J1IF01, the all field related to excise value is disable thats why we can not put the value in it.
Please suggest something.
Regards
Pawan Sarda

Hi
As per my knowledge,If you are sending your material with full excise value to your subcontracting vendor means its one type of saleing
Here you are sending material material with excise duty means its sure you dont get back your material in 180 days ,so while doing finsihed material your vendor will send finsihded material along excise value and you will capture tha excise value
I think In this scenario subcontracting Challan don't come in Picture
steps are follows
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.
Capture Vendor Excise Invoice at the time of GR of Finished Goods w.r.t. Subcontracting PO (MIGO)
Post Excise Invoice for FG received from Subcontractor (J1IEX)
Regards
Kailas Ugale

Subcontracting with excise duty ??

Hi experts
Can anybody explain me , how subcontracting procees haes been done with excsie duty ?
In short somebody can explain me here only , with any link.
I should know , how the excise invoice has being created and how capture and post the same will be happened ??
While sending the material for job work. the excise duty value 'll be less .
While receving as finished goods from subcontractor excise value will be more , so hopw this will happen in real time .....???????
Thanks
SAP-MM

Hi.
Your scenario comes under u201CSubcontracting Under Full Payment of Dutyu201D .
The basic requirement is that in your pricing you should have manual condition (JEXC) for entering the excise duty of the finished goods which you are getting from the subcontractor.
Rest of the thing is normalu2026
1.First create a sub cont PO as usual. But under conditions you should enter the Excise duty liable on that finished goods
    against the condition JEXC. Later you maintain the BOM.
2. Do the transfer posting of the child components.
3. Based on this transfer posting document create a out going excise invoice at J1IS. Here what ever the excise duties comes
    will be the excise duties of child components.
4. After this physical send the child components along with the excise invoice.
5. Later the subcontractor process those child components and send you the finished goods along with his excise invoice.
    This excise invoice will contains the excise duty applicable on the finished material. Anyway you have maintained this at the
    time of PO creation against JEXC condition. If you found any difference in the excise value what you maintained in PO and
    that form the subcontractor excise invoice, then amend the PO to the correct value.
6. After that first before GR only capture (not Post) the excise invoice with reference to PO.
7. After that DO the GRu2026
8. After that Post the excise invoice.
9. Finally do the payment by MIRO to the subcontracting vendoru2026
Hope this will clarify your doubt.

Job Work

Dear Friends,
Weu2019d sent 3.2 Qtls of material for Job Work. Excise Challan (J1IF01) was created with 3.2 Qtls. But only 2 Qtls were received due to burning loss. GRN was made for 2 Qtls. Weu2019ve reconciled the Excise challan (J1IFQ) with 2 Qtls. But when we are running J1IF13 to complete weu2019re not getting u201CComplete Challanu201D & u201CDo not Complete Challanu201D options. Instead weu2019re getting u201CReverse Challanu201D & u201CDo not reverse Challanu201D. Moreover in J1IFR 1 (One) Qty is showing as pending & also due for reversal.
Our issue is that how can we get u201CComplete Challanu201D & u201CDo not Complete Challanu201D options in J1IF13? And what to do in SAP, so that in J1IFR Qty Pending & Qty due for reversal shd be ZERO even if qty send was 3.2 Qtls & received 2 Qtls? Please tell the whole process in such scenario. Plz help.
Thank you very much.

Hi
The reason for the above case is that u have not recieved all the items in the challan .ie there is pendind quantity of 1.2 against the challan .so in such cases what u need to do is
1) recieve 1.2 kgs through movement type 542 and then take a concious decision whether to scrap the material( 551 movement)
2) run J1IFQ for the 542 document and the challan
3) now go to J1IF13 and complete the challan( U can find the complete radio button)
Note : for any Incomplete challans u can only reverse or donot reverse and cannot complete the challan

Good receipt for job work from other plant

Dear Experts:
1.Material Received from Other Plant for job work with challan and how to bring the Material into Stock at receiving plant.
The same material stock number available in this plant also.
Regards,
Sridhar.N

Hi,
You could use serial number concept or bacth managment here to separate within the material code.
Regards

Excise Tab in Migo - Job work of Finished excisable goods

How to Handle the Finished goods which is to be sent to vendor for job work...
Since the material is maintained in Ji1d as F RG
Excise tab is not appears in MIGO agins the Job work PO.
How to solve the issue?
regards,
Sridhar.N

Hi,
Exactly you cannot send a finished goods to the subcontractor for work.
You should rather change the material type.. or you have to create a new material with HALB/ROH material type... then only the process works.
Thanks & Regards,
Kiran

JOB WORK CHALLAN - CONFIGURATION related issue with client .

HI FRIENDS ,
CLIENT PROCESS
STAGE 1: CLIENT SENDING THE SEMI-FINISHED MATERIAL UNDER JOB WORK CHALLAN ( 57-F ) TO JOB-WORKER.
LET SAY 1000
STAGE 2: ONCE JOB-WORKER RENDERING (AFTER POLISHING-CLIENT REQ ) THE MATERIAL ,THEY WILL INTIMATE TO THE CLIENT BY MAIL OR PHONE.
LET SAY 500 ON 1.1.2012 , 500 ON 2.1.2012
STAGE 3: CLIENT RAISE THE INVOICE AGAINST CUSTOMER DEPENDS ON MATERIAL QUANTITY . AND SEND IT THROUGH MAIL TO JOB-WORKER.
STAGE 4 : JOB-WORKER DELIVERS THE MATERIAL TO CUSTOMER DIRECTLY( NOT TO CLIENT PLACE) ALONG WITH CLIENT INVOICE COPY.
STAGE 5 : JOB-WORKER UPDATE THE CHALLAN & RAISE THE INVOICE AGAINST THE SERVICE TO THE CLIENT .
REQUIREMENT :
1. HOW TO MAP THIS PROCESS IN SAP IN DETAIL?
2. HOW TO SHOW THE INVENTORY IN CLIENT'S PLANT?
3. DOES IT COMES UNDER RG1 REGISTRY(WHAT ARE THE DOCUMENTS NEED TO UPDATE )?

This is very sorted out topic.
You can find lot of link, which you can search with search term "JOB WORK".
Have look on some of the links, which I can suggest:
- SDN Article on [Direct Subcontracting Process (SAP SD & MM)|http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/d0dbde93-6fa4-2c10-edb9-e477fa85b232]
- subcontracting
- Job work in SD subcontracting.
- SD - Subcontracting
Follow following path in IMG for Subcontraction Configuration:
SPRO - Logistics General - Tax on Goods Movements - India - Business Transactions - Subcontracting - Subcontracting Attributes
There Excise TT to follow is 57FC.
Regards
JP

How to deal with Job Work Scenario in SAP B1

Dear All ,
After purchasing material from one vendor the same has to sent for job work ( fabrication) , when the material complete from job work the cost of those material is increase . Please guide me for how to capture those additional cost in inventory.
Overall please brief me how to handle job work process in SAP B1.
waiting for positive response to resolve my query...
Thanks in Advance
Regards,
Harshad

hI HARSHAD
While u do the purchasing of material please make a udf to denote that the item purchased are for job work u may prepare a udf or not depending upon ur system
then once the item is purchased make a warehouse in ur system and name it as job work and then do inventory transfer and once the job work is done again do inventory transfer with increased price that would include ur job work price
its worthwhile to chekc that in ur test database first and see if it fulfills ur concern or not
Regards,
Manish

I need version 3.6.16 for an at home online job. I am unable to find it anywhere from a secure source. Is there a way to get a link to download it? The ChaCha Toolbar only works with this older version. Thanks!

I need the older version 3.6.16 for my at home based job for ChaCha. Their toolbar only works with this version and they say it is more compatible with this. And I have not been able to find a secure link to download this older version. Can you give me a secure link or is it possible to download this older version securely?

If you only need Firefox 3.6 for just one thing then you may be better off using a portable version of Firefox as it will not impact your Firefox 6.0.2 install. You can install it on hard disk or on a usb flash drive. Firefox 3.6.22 is the current security update as 3.6.16 is old.
http://portableapps.com/apps/internet/firefox_portable/localization#legacy36

REVERESE SUBCONTRACTING WITH EXCISE DUTY

Job Work done by Client with excise duty
Business Process,
                             Raw material got from the Customer & it is processed by Client finished goods are made the same will be delivered to the Customer with excise duty.
Details:
1     Sales order will be created with the details of raw materials that customer agreed to give & finished product that customer need after getting the P.O from the customer.
2     Customer will send the material with excise invoice (paid by customer).
3     Client receives the material post the customer excise invoice with part-1 & part-2 entry in the RG23A register.i.e Cenvat credit taken by Client for the customer material.
4     The received Raw material processed by Client converted to finished product with RG1 entry.
5     Finished send to the customer with excise duty paid by Client
6     As excise duty liability is with Client every month excise duty difference between credit taken & paid is settled with customer.
E.g. For August month
          Cenvat credit taken for raw materials Rs-10000
          Excise duty paid by the Client Rs-50000
          Difference to be paid by the customer to Client is Rs-40000
Pl guide me how to map this process in cin
Regards
Umapathy.M

Hai,
The pre requisties for this scenario in CIN part is
1. Create the input raw material with UNBW material type.
2. Create the customer as a vendor.
3. Maintain the input material in J1ID with material type raw material & chapter ID.
4. Maintain the excise details for this vendor with excise indicator.
5.Maintain the assessable value for this material in J1ID. This has to be flow for excise calculation.
6.Maintain the excise tax rates for the Chapter id in J1ID.
7.Mainain the 501 Mvt type in IMG - Logistics general - Tax on goods & movements - India - Business transactions - Incoming excise invoices - specify which mvt type involves excise invoices.
8.Maintain the settings for register entries & GL accts in Acct determination in IMG - Logistics general - Tax on goods & movements - India - Acct determination for the excise transaction type EWPO.
The steps involves are
1.Create a sale order with excise tax code conditions for the processed fininshed product.
2.Do the MIGO with other receipt for 501 Mvt type to receive the raw material. Capture the excise invoice in the MIGO itself.
3.Post the excise invoice by J1IEX.
4.Do the process with PP cycle.
5.Send the finished product with SD route.
6.Do the Billing & outgoing excise invoice.
7.The SD Pricing procedure has to be configured as per the requirement.
8.Check the accting entries at the Customer acct.

REVERSE SUBCONTRACTIN WITH EXCISE DUTY

Job Work done by Client with excise duty
Business Process,
                             Raw material got from the Customer & it is processed by Client finished goods are made the same will be delivered to the Customer with excise duty.
Details:
1     Sales order will be created with the details of raw materials that customer agreed to give & finished product that customer need after getting the P.O from the customer.
2     Customer will send the material with excise invoice (paid by customer).
3     Client receives the material post the customer excise invoice with part-1 & part-2 entry in the RG23A register.i.e Cenvat credit taken by Client for the customer material.
4     The received Raw material processed by Client converted to finished product with RG1 entry.
5     Finished send to the customer with excise duty paid by Client
6     As excise duty liability is with Client every month excise duty difference between credit taken & paid is settled with customer.
E.g. For August month
          Cenvat credit taken for raw materials Rs-10000
          Excise duty paid by the Client Rs-50000
          Difference to be paid by the customer to Client is Rs-40000
How to map this process in CIN
Regards
UMAPATHY.M

,

Sub Contracting with Excise

Hi Expert,
Pls. guide me about mapping of Sub contracting with excise in SAP B1.
Thanx in advance
Regards
Kamlesh Vagal

Hi Kamlesh Vagal,
You may check these threads first:
sub-contracting
How to get work done through Sub Contracting
Job work
Thanks,
Gordon

Query regarding Job work senario in India

dear all,
i am facing a strange problem
i m having some Customer who sent material on (4)(5) a or 57F4 challan for job work. In that case only labour charges are charged no excise duty will charged, but how i will take the material "in" in to system,from which transaction code and which movement type i used. Also the storage location should be different for that ?
It Dose not hit the RG1 Register.
can any body help me to solve this
please please solve the problem
regards
pankaj
[email protected]

Dear Pankaj
1. Then i will suggest to use DIEN Material type , which will not be valuated, as
it is customer's stock
2. Then you recieve the material from Customer, which is non-valuated.
This you can do in MIGO.
3 Then you make a production order with BOM, where component will
be material given by customer and FG will be Material you are going
to send along with byproducts.
3. Once material is process(or produced) then you can make a seperate jobwork sales order type and deliver it
4. Finally bill it for services rendered.
If you use Services you will not get stock of customer's material in the system.
But if you use non valuated material you can get the stock. So ask if stock
is required???
As no excise entries are required you need no worry about CIN part
I hope it is clear....
Regards
Jitesh

Job work in SAP SD

Dear All
My client have a requirement.... they have got empty bottles and their logo we have to just paste them and send it back, so its a matter of JOB WORK in SAP SD, here the customer and Vendor is same, so how can I map this in sap.
Matter is most urgent,
Thanks and Regards
Deepankar

Dear expert
Here the scenerio is like this-
1] The Material will be received under job work, hence it is non-excisable, it should be return within 180 days from the date of supplier challan date.
2] In case of Breakages or scrap of Bottles, Customer/Supplier will provide us 2-3% allowance.
3] Supplier will provide the plain Bottle in Plastic Crate, same will be returned to him. No need of any packaging.
4] For Pricing, Base Price will be decided by Marketing Team. Service Tax - 10% of Base Price, Ecess - 2% on Service Tax, S/HEcess - 1% on Service Tax, Thus pricing will be done.
5] For Invoicing the procedure required in SAP with reference to Service Tax. only Heading display INVOICE instead of Tax invoice & separate series of Invoice will be required.
How to map this in SAP SD module
I am new hence need help on urgent basis
Thanks and regards
Deepankar

Material Clear from Job worker Premises.

Dear Experts,
We are the Chargeable Subcontractor of Tata Steel Ltd., he is the Direct Vendor of Tata Motors Ltd., he is required to clear the material from JOB WORKER PREMISED, for that purpose we have required to Map following activity in system.
1) To be receipt the Raw Material as a non valuated
2) To be Taken the Cenvat credit of Raw Material
3) To be Make the Excise invoice to Tata Steel Ltd., for duty purpose only with Rate 1407/- ( as per the PO of Tata Steel Ltd.,)
4) To be make The Labor Charge Invoice @806/- in favor of Tata Steel Ltd., for recover payment of Conversion Cost.
5) To be make differential duty debit invoice (difference in credit take @806/- & Duty debit @1407/-)
How to map in system please guide.
Regards
BK GAIKWAD

Hi,
1. MB1B - Transfer Posting material from Subcontracting Stock to Own Stock via movement type 542
2. J1IF11 - Here delete the Subcontracting Challan

Job Work with Excise

Similar Messages

Maybe you are looking for