MM-Qm integration in Purchase

Question

Dear All,
we are Purchasing raw material from Supplier .
Raw Material is Excisable (Modvat).QM for Procurement is Active. 
Say, 100 kg worth 100 INR basic value + 10 rs Excise Duty.
When material GRN carried out at our Plant :
query A ) Excise Duty Posted be at the Time GRN entry or
          After Clearance of stock from Quality .
Query B ) If the Excise Entry Posted at the time of GRN only.
          then after in Quality we Found 25 Kg return Delivery.
          If this 25 kg is posted in RETURN DELIVERY in quality stock posting.
          Whether the Excise Duties will Be reversed?
Query c ) If not revesed in RETURN DELIVERY then how to reverse these duties.
Pl guide for the same .
Regards

Answer 1

Hi Venky,
Query A) Excise Duty Posted be at the Time GRN entry or After Clearance of stock from Quality .
Depending upon the MIGO Setting in Excise group ( in customizing) , your Excise Duty are posted.
First, Check the MIGO Setting. SPRO -IMG-->Logistic General --> Tax on Goods Movements --> India --> Basic Setting --> maintain Excise group.
select the combination of excise group and plant and click on the detai view.
In the Last block you will find the MIGO Settings.
If EI Capture is selected then only part 1 entry will be created with the posting of GRN.
IF EI Capture and POST EI in migo is selected then your excise duty get posted with the posting of GRN (i.e. Part 1 and Part 2 entries, both get created).
Query B) If the Excise Entry Posted at the time of GRN only. then after in Quality we Found 25 Kg return Delivery. If this 25 kg is posted in RETURN DELIVERY in quality stock posting.
You can reverse the 25 Kg of material directly to the vendor using 122 Movement during the clearance of Quality check itself.
But it will not reverse the Excise duty by that amount.
Query C)  If not revesed in RETURN DELIVERY then how to reverse these duties.
You can post the excise invoice of that much amount using transaction J1IS.
J1IS - Excise Invoice Other Movements
Here click on u201Ccreateu201D button to create an outgoing excise invoice and reverse the CENVAT Amount.
Here put all details as below and Press u201CEnteru201D.
Ref.doc. type - MATD, Doc Number - Material document No of 122 mvmt, Doc Year, Series Group, Excise Group, Vendor
Here check BED, ECS and SECess values to be reversed and click on u201CSaveu201D button to post the excise invoice.
You can get more details on this if you search for 'Return delivery to vendor' or by term 'J1IS'.
Hope it will solve your problem.
Regards,
S Anand