Material type for capital goods

Dear SAP Experts,
To Assign material with chapter ID in J1ID for CAPITAL GOODS , Which material type should use to create material code for capital goods, please suggest,
with regards,
ARABBAS

Hi Arabbas,
Based on your asset you can copy any of the following standard material type to create your own Asset Material type
1. EPA - Equipment Package
2. ERSA - Spare parts
3. HERS - Manufacturer parts
Krishna

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Brain Teaser:Material Type for Hiring goods

Hi Guru's
We have scenario where we need to sell goods(ON HIRE BASIS) and actually donot selll it off.
DOes any body know is there any Material type ( I think theres not)..but stilll if any body knows ...How can i map this scenario ..I have to sell the Material to customer on hire basis and then get it back from Him (Is this service ) ..
Just getting confused..May be the Experts can guide me..
Kind Regards
Vikrant M Kelkar

Hi Mer,
Yes the requirement is we are charging for the Goods(Materials) that we are hiring ..so it needs Value updation ..I think we can change this setting in Material type...
Please let me know..
Regards
Vikrant M Kelkar

ED Configuration for Capital goods

Hi Gurus,
I have a problem in calculation of Excise duty with respect to capital goods.
Our client wants to Create a new tax code ......though which they can claim the .....Input of 50% Excise duty this year and 50% next year,( for that he want to update two different GL accounts for these percentages) and 4% VAT on it.
EX:
The new tax code for 12.36% of excise duty + 4% VAT, required in a single tax code. (This 12.36% ED -- 50% this year and 50% next yr)
Required for the following scenario
Suppose Base AMC valve is          Rs.10000/-
12.36% of Excise duty which is     Rs.1236/-
4% of vat on Rs.11236/- which is    Rs.898.88/-
Total amount including taxes Rs.10000 + 1236 + 898.88 = 12134.88
As the client is not using CIN, how to configure this scenario. We are on ECC 6.0
Thanks in adv,
Sri SAP

Hi,
1. for Capital Goods, first in J1ID miantain in material and chapter id maintain that material code with Assets.
2. In Create PO with Account assigment as Assets.
3. In SPRO, while maintaing specify Excise accounts per Excise TT as
CAPE          CR Credit     ONHOLD CENVAT on hold account
CAPE          DR Debit     ONHOLD CENVAT on hold account
CAPE          DR Debit     RG23AT1 RG 23 AT1 Account
CAPE          DR Debit     RG23BED RG 23 BED account
CAPE          DR Debit     RG23ECS RG 23 ECS Account
4. Now in PART2, RG23C Register type is updated for Capital Goods
5. The Excise Posting Entries must be like
During Excise Invoice Credit
                                    Cenvat Account           Dr.       (50%)
                                    Cenvat On-hold           Dr.       (50%)
                                    Cenvat Clearing                      Cr.
6. Check the Balance Credit Capital Asset T Code J2I8
Hope help u !
Regards,
Pardeep Malik

Excise capture for capital goods

Hi,
Recently we have purchase capital goods for our organization it is a machine with higher cost, in J1ID We have maintain chapter ID for that capital goods with material and chapter ID combination, also in J1ID tax % BED, ECES SECESS is maintain and also the material type in J1ID is selected as ASSETT. till now we have not taken excise for capital goods for this machine we want to capture the excise, now I want to know the further process is the process is same as we done for othere excise materials,
1: Capture excise invoice in J1IEX ,
2: Make the GR with MB01 or MIGO ref. to J1IEX excise invoice number
3: Post Part2 J1IEX, is the same procedure we have to follow or there si some different method for this, as for capital in first year 50% duty to be avlied and remaning in next 2 years with J2I8, so what should be the process and what settings to be checked for this.
regards,
zafar

Hi,
Can you help on this.
regards,
zafar

AED Posting for Capital Goods

Hi
For Capital Goods, excise availed will be 50% for this financial year and 50% for next financial year. Is it applicable for AED/CVD for imported goods also.
Rgds
Srini

Businesses are allowed to set off excise duty on purchases of capital goods against excise duty on outputs. However, unlike with raw materials, you can only set off half of the duty in the first year, and the rest in any year after that.
Prerequisites
In the material master, you have classified the capital goods as such.
Because duty on capital goods is handled using excise transaction type CAPE, you must also have specified that you want this transaction to credit the excise duty to the CENVAT on hold account. You make this setting in Customizing for Logistics u2013 General, by choosing Taxes on Goods Movements ® India ® Account Determination ® Specify Excise Accounts Per Excise Transaction.
You must then have specified which G/L account is the CENVAT on hold account, again in Customizing for Logistics u2013 General, by choosing Taxes on Goods Movements ® India ® Account Determination ® Specify G/L Accounts per Excise Transaction.
Features
When you post an excise invoice that contains capital goods, the system posts half of the excise duty to your CENVAT account and posts the rest to a G/L account for CENVAT on hold.
In following years, you can use a report to identify the capital goods with excise duty on hold and transfer the duty to the CENVAT account (see Transfer of CENVAT Credit on Capital Goods).
Activities
When working with excise invoices that include capital goods, note the following:
Capturing vendor excise invoices
When you create an excise invoice with capital goods, you have to set the material type to A (assets), C (consumables), or T (tools).
Posting excise invoices
When you come to post the excise invoice, the system posts only half of the excise duty to the CENVAT account. The system does not round the amount off.
Transfer of CENVAT Credit on Capital Goods
You use this report to display a list of the vendor excise invoices where the vendor has levied excise duty but you have not posted it (in full) to your CENVAT account.
This is particularly useful in the case of capital goods, in order to find out how much credit remains from previous years.
Features
To access the report, from the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® Reports ® Balance Credit for Capital Goods.
Selection
On the selection screen, enter:
Organizational data
Data of the documents that you want
Output
The system displays a list of excise invoices with excise duty outstanding. It shows you:
The total amounts of the various types of excise duties levied on the excise invoice
How much duty has still to be posted to the CENVAT account
Select the excise invoices that you want and choose Transfer credit. If you want to transfer only a portion of the remaining amount, enter this amount as the amount to be credited.
The system creates an accounting document to post the duty to the CENVAT account and creates an entry in the Part II register.
Regards'
eswarmanu...

Availing full CENVAT Credit for Capital goods

Hi,
In our client, they want avail full cenvat credit for Capital goods in the present fiscal year itself. How can we do this in SAP? Plz. explain me.

Hi Pawan,
You cannot avail total 100% Credit on the CENVAT paid on capital purchase as per the goverment rules.
The puirpose of maintaining the goods as capital goods are that you are only eligible for 50% credit in the current fiscal year and remaining 50% Credit in next Fiscal Year. its nothing that we configured, it is standard functionality in the country version. The Excise Transaction Type CAPE which come in to play at the time of capital procurement.
1. If your Client Requirement is to take 100% Credit for this material, then ask them to maintain Chater ID for this Material in J1ID as RAW materail. and During Excise Auditing period your client has to give relevent explaination to Excise Authority.
2. If your client has maintained in J1ID as capital , you can take the Remaining 50% Credit in current fiscal year also using J2I8, Before using this transaction verified from Excise Authority.
Or else As per my knowledge you cannt take 100% excise credit for Capital goods.
Cheers
Manoj K Singh

CIN configuration for capital goods

Dear All,
I have to configure CIN for capital goods purchase. Please let me know the important configuration required for the same.
where we can set 50% on hold conditions ?
Regards,
Umesh

Hi,
1. for Capital Goods, first in J1ID miantain in material and chapter id maintain that material code with Assets.
2. In Create PO with Account assigment as Assets.
3. In SPRO, while maintaing specify Excise accounts per Excise TT as
CAPE          CR Credit     ONHOLD CENVAT on hold account
CAPE          DR Debit     ONHOLD CENVAT on hold account
CAPE          DR Debit     RG23AT1 RG 23 AT1 Account
CAPE          DR Debit     RG23BED RG 23 BED account
CAPE          DR Debit     RG23ECS RG 23 ECS Account
4. Now in PART2, RG23C Register type is updated for Capital Goods
5. The Excise Posting Entries must be like
During Excise Invoice Credit
                                    Cenvat Account           Dr.       (50%)
                                    Cenvat On-hold           Dr.       (50%)
                                    Cenvat Clearing                      Cr.
6. Check the Balance Credit Capital Asset T Code J2I8
Hope help u !
Regards,
Pardeep Malik

Commercial rounding for capital goods

Commercial rounding off of all duties
All the Duties are rounded up in PO & MIGO with some routing development through ABAP.
Now client requirement is that in case of capital goods
1.     If suppose that in Capital Goods Cenvat is Rs. 45.00, in same year only 50% credit is available hence Rs. 22.50 i.e. after rounding off it is available to us 23.00 and in on hold account only Rs. 22.00 should be available, but present SAP system does not propose the same
2.     If Value of Secondary Education Cess is Rs.1/- for capital goods then credit available in current year should be Rs.1/- & on hold account it should be Zero
Business is saying that it is statutory requirement as per Govt. Notification
How much Govt is firm on this rule & how other companies are achieving this using SAP?
Another Question is that While reversing CENVAT credit taken for capital goods without rejecting material (Only Duty reversal because credit wrongly taken)
We have to pass Excise JV through J1iH & reverse 100 % duty. STD procedure is that   we have to transfer 50 % duty from Hold account to the RG23 C part 2 then reverse 100 % duty
But business is saying that it is wrong practice & against excise law .In this case how to handle CENVAT on Hold Account.
( I have Already used OB90 & routing Number 17 is working fine but not for above case )
Thanks
Edited by: sachin patil on Mar 10, 2009 7:00 AM

Dear sachin ,
As far as I see, there is no loss to the company,
1. you paid the vendor for the full excise amount
2. As a manufacturing unit you are liable to take 100% credit
3. IF you classify the material as capital goods as per your needs then take 50% now and 50% in next financial year
4. If Raw material take 100% credit
5. If the material has been mistakenly classified as C and first 50% credit availed, then to correct your operations you will have to take second 50% from J1IH then in that case you will have to clear all credit on hold from your original 50% credit entry & the J1IH entry, hence you will end up taking 100% credit.
In such conditions you can also opt for credit reversal through J1IH against the said part2 entry, & thenj create a fresh ID declaring material as raw material & take fresh 100% credit.Here also that second 50% from the on hold account would be required to be cleared.
Hope this helps,
Regards,
Akhileshwar K

CIN Setting for Capital goods (RG23C)

Hi,
Presently, after doing Goods Receipt (MIGO) when trying to update RG23C Part 1 in J1I5 with reference to the material document and choosing classification as ROP, the system doesn't find any data.
When trying to Capture Excise Invoice in J1IEX, the ETT comes GRPO whereas it should have been CAPE.
Can any one provide the complete setting details for handling of Capital goods as well as the configuration details for CIN Setting for Capital goods (RG23C)?
Thanks in advance
Note : Please search forum before posting.
Edited by: Jeyakanthan A on Jun 4, 2011 11:17 AM

Hi,
try to open now,
[http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442e6f?quicklink=index&overridelayout=true]
Check it once again now
Regards
Kailas ugale

Excise is getting post to RG23A instead RG23C for capital goods return del

Hi SAP Guru,
I have very critical issue to be resolved emmediatly in the area of Excise for CAPITAL GOODS, please help! the things is....
1. At GR level using mvt 101, system is posting all BEDECSSECess to correct RG23C register, fine
Quality people has rejected goods,When i'm trying to create vendor return delivery using......
GR(122)>J1IS>J1IV,, useing this process system is posting BED+ECS to RG23C but SECess to RG23A, i wanted to know why SECess is getting post in RG23A instead RG23C. plz suggest if any config. chages to be done.
or
2. when i am trying GR(122) along with all Excise parameter, system is throwing error "RG23C-AT1 amount 1600.00 is greater than the available amount 0.00". when is checked the relevent register i found out enough balance.
or
3. After GR (122), when i'm using J1IH(JV) method, system is thowing error like " Balance in transaction currency 'Message no. F5702'.
Now plz suggest the correct answer!
Thanks & Regards
Manoj K Singh
+91 9940216442

Hi Datta, thanks for the reply
according to SAP Note 1062872 (2005B version) it reads as
"The excise register for excisable items of type raw materials/finished goods is currently set to RG32A Part I. When you create an out going excise invoice with these type of items, the accumulator for RG32A Part I will be increased."
I thought the same is applicable with SAP Business One 2007B version. However what you said might be correct. But the problem with one of my manufacturing client is whenever they raising an Outgoing Excise invoice they have registered numbers automatically be created on the pre printed invoice paper. where the invoice will be printed only with the qty, rate , price and register numbers rest of the information on the document is pre-printed. So they have a column called RG23C Part I / II where register numbers are automatically printed. But RG23C Part I & II are for "Capital Goods"
If I consider these manufactured items as "capital goods" then it will raise register numbers automatically. but this will not acceptable. correct me if i am wrong. so all of these items should be cosidered as Finished Goods in the item master data. if i do that again there is a conflict with their RG23C Part I / II on the pre-printed column and i wont be raising any register numbers.
Please update me on how should I deal with this issue
SV Reddy

Changing material type for material with history

We needed to change the material type for an existing item with purchasing, inventory and sales history from HAWA to UNBW. We are trying to PGI the first receipt since the change, and are receiving an Account Determination error .
When I look at the material master set-up, I still see records in the MBEW table. UNBW items that are set-up that way from scratch do not have any records in this table. Is this what is driving my error?
I'm guessing that if it is not, there will be some discrepancy between the material, vendor, and capital asset order.
Any insight is appreciated.

even UNBW can have accounting views.
The problem is probably that you just changed the material type and did not change the valuation class in the accounting view accordingly. remove it, and try again.

For Capital goods in in Detail tab in Part one data Multiple serial numbers

Hi experts,
For capital goods i captured Part 1. Display Vendor excise details in item detail tab in part 1 columns Register,Year, Serial number, material document,year, item, internal number like that are there. In serial numbers four different serial numbers are generated. one is receipts and three is issues.
can anybody answer me why these four serial numbers are generated and three times issues is came. please do needful.
From.
Naveen.

Hi,
The possibilities could be becaz of :
1) Cost Center purchase , system updates QTY as well as Issues at the time of GR.
2) Item without Material Code
Pl. check
rgds,
vikas

Material type for Vendors Returnable packaging material

Dear all,
I have a scenario where in i am recieving co2 gas from my vendor against a PO.
He is supplying it with cylinders i want to keep track of the cylinders and afetr using the gas want to return the cylinder to vendor.
Now the doubt arises, under which material type should I create this cylinder.
Doubt 1
I thougt of creating under the material type : LEIH, but this material type also contains the purchasing, accounting, sales view and same time in the config of the material type LEIH, value updating is not ticked, which is making me confuse.
Doubt 2
What I felt is, LEIH should be used for the our owns company returnable packaging material , which will go to the customer , but again for this also, these material should be valuated, since they belongs to our own stock , so why in standard SAP, value updation is not there.
Doubt 3
Keeping above 2 points in mind, what should be material type for vendor's returnable packaging material , where I want only qty tracking.
Regards
Nitin

You can copy LEIH and create your own Materia Type say ZLEI. For this material type you can have only General Plant / Storage Data1 view enabled.
Remember, there are 2 materials here:
1. Gas
2. Returnable packaging (cylinder)
You can receive gas on unit basis if you dont want exact tracking (ie in KG). Use any procurement material type.
When you create the PO only mainitan Gas as the material.
When you do the goods receipt against this PO, Click on RTP button, this will create a new line item, automatically and will suggest movement type 501+M. Here enter the no. of cylinders.
You will be able to track the movement of cylinders.

50% Credit in VAT for Capital Goods(Assets)

Dear SAP MM Experts,
My client need to take 50% VAT credit in the First year and remaining 50% in the next year for Assets(Capital Goods). Currently I have configured 50% Cenvat credit for Excise duty, it was working very well using J1ID.
But for VAT, what configuration is necessary to take 50% VAT credit for Captial goods(Assets). Right now I use JVCD for taking 100% to VAT and JVCN to make it as inventory(Non Deductible).
Please do the needful.
Thank you.
Regards,
Baskar

This is standard behavior of SAP. In case domestic purchase, we can avain 50% CENVAT on additional excise duty (AED).
But in case of Import , we can avail 100% CENVAT for capital goods on additional customs duty (ADC).
Understand the difference between ADC & AED.
Try to convince client for the same. If he is not convinced, better write to SAP. Don't make changes related to subtransaction type 'IP'.

45 Challan for Capital goods

How to create 45 challan for capital goods without payment of excise duty.....for capital goods material...
Error in J1IF01 is
The mat. doc. does not have materials relevant for subcontracting...
Plz guide me on this....
Thanks in advance
Santosh

Hi,
There is no defined process for returning capital goods.
While making the Incoming excise invoice Purchase tax accounts defined in tax code and On Hold account defined in GL Account determination will be debited for the 50% value.
While returning the same,in Outgoing excise invoice, sales tax accounts defined in tax code will be credited for the whole value.
After doing this, An adjustment journal entry need to be passed by crediting the On hold account and debiting the sales tax accounts defined in tax codes for only the 50% excise value.
By doing so our input and output for excise booking will balance.
Hope you got my view in it.
Regards
Ravindran Srinivasan.

Material type for capital goods

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