Plant is subcontractor with excise

Hi,
We are having only Plant 1000(mfg Plant), we are dealing with so many vendors but one of our vendor 9000.
Our Vendor 9000 taking our plant service, He is sending some material for champ ring, we need to take that material in our plant , done the job wok and send that material back to Vendor, How to deal in SAP with Excise.
if he( our 9000 Vendor) send that material with F4 challan to our plant , then how to map?
Plant 1000's responsibility is to take the material and send them back after job work.
sapman man

HI,
As per my understanding either i can receive Non Valuated Material (Through Dummy PO). But how to deal with excise ( Vendor treated our Plant is subcontractor, so, i,e reason Vendor sent their material with subcontracting challan)
Is their any Provision in SAP so how to deal with this scenario, Bcz we are created Dummy PO and doing GRN then what abt excise capture?. is it feasible if vendor sends their material with challan then how to treat that challan in our premises, bcz we are created STD Dummy PO means , as per Basic SAP we need to capture excise Part1 and Part2.
After completion of Jobwork how to issue that Material to Vendor, ( in His view our plant is subcontractor).
Is their necessary to create outgoing excise invoice while issue or sale of material to vendor.?
sapman man

Similar Messages

Plant to plant stock trasnfer with excise duty

Hi,
We have one company code and two plant assign to it , now one plant is Ma=fg. plant and other plant is depot plant , now I have purchase material with excise duty in mfg. plant and excise is capture with J1IEX aprt1 and part2 is done   now our requirement is we wan to sal that material thorugh depot plant so for this the entry should be there in RG23D so can you giude or give some link for this so that material from plant A to be trasfer to depot plant , with excise then we can sale that material thorugh trading plant.
regards,
zafar

Hi,
        Steps to Stock transfer from one plant to another plant as below... ..
1. First enable Sales View of material that you want to transfer (MM01) and fill required data i,e.
Plant  Select Plant where Material transferred.
3)     Sales Org. Data1 Menu  Select Division u201851u2019 Cement.
4)     Sales Org. Data2 Menu  Select Gen Item Cat. Grp u2018 NORMu2019
5)     Sales General Plant Data 
A)     Availability check u2018KPu2019
B)     Loading GRP u20180001u2019
C)     Profit Center u2018Plant Codeu2019
2. Create Condition Records (VK11)
3.Create Sales Order                 (VA01)
4.Create Outbond Delivery     (VL01N)
5.Create Billing Document      (VF01)
6. Excise Invoice                          (J1IIN)
7. Printing of Excise Invoice and Commercial Invoice                           (VF02)
Regards

Plant to Plant STO with excise invoice and taxes in one company code

Hi,
I have a new business requirement, we want to create only one company code and 12 plants in different states, each plant will have separate purchasing and sales activity this is ok this can be done with separate excise and series group as ther will not be any issue for purchsing and saling of materisl with exice in each plant , but how we can transfer the material plant to plant if the plant is in different states we want that the material should be transfer from palnt to plant with excise invoice only, as we have the company code common, how to create the billing document for this, and how to pass the duty from the saling plant and capture the same in the recieving plant. with proper tax entry. Can we do the STO with biiling if the two plants are in single compnay code.
regards,
zafar

hi,
I am trying to create a Stock Transport Order (STO) with document type UB and item category U. My objective is to transfer material from Plant (supplying plant) 100 to Plant (receiving plant) 1100 within one company code (1000) with STO.
For this purpose I created a raw material 1434 in plant 1000 with sales org 1 view and in that view entered in delivering plant field 1000 as delivery plant. After that I extended material 1434 to plant 1100 without changing anything what I did while creating the material first in Plant 1000 except in organizational level I entered 1100 in the plant field. I entered Sales org 1000 and distribution channel 10 in organization level for both plant while creating and extending the material. In me21n I chose Stock Transport Order with document type UB and item category as U also receiving Plant as 1100. With this when I tried to save the STO the message, I am getting an error, Cannot determine shipping data for the material 1434?
I am doing solely mm function why I need to create Customer master? In this case plant 1100 is the customer right?
Solution:
1. Mat.(1434) should be maintained in both the plants. (1000&1100).
2. Should have enough stock in supplying plant(1000).
3. Make its supplying plant as a vendor in vendor master record in receiving plant(1100).
4. Make it receiving plant as a customer in customization.
    Create customer (xd01) & and define the shipping data for plants in both the plants.
    Path: spro u2013 img u2013 m.mgmt u2013 purchasing u2013 po u2013 set up STO u2013 define shipping data (1 by1 )
    In Receiving plant (1100)                         In Supplying plant (1000)
    Customer num. 123345 (for ex.)              Customer num. -
(don't fill)
    Sales org.yyy
    Dist. Channel
    Sales div. y
5. Assign doc. Type is "NL" for intra company STO. If STO is inter company, Assign doc. Type is "NLCC".
    Position doc type is "UB"
    Enter supplying plant(1000) & doc type (NL) & checking rule (ex:01)
6. Assign doc. Type is "UB" to u'r plants.(PO)
    Go for new entries
    Enter supplying plant(1000) & Receiving plant (1100) & doc type (UB).
7. Create a PO, choose the doc type is `UB' & item cat.'U', Enter supplying plant as a vendor in PO of the receiving plant(1100).
8. Provide this num (PO) to SD people, they will do the delivery by using transactional code is VL10B.
9. Sales people they will provide "out bound delivery num".
10. Do the GR. In GR the second tab 05 out bound delivery instead of PO mov.type 101.
11. See the stock over view in the receiving & supplying plants.
thanking you

For STO with billing how to take material in plant stock without cancelling excise duty

Hi,
Please suggest for STO with billing how to take material back in plant stock without cancelling excise duty.
Scenario is
Material transffered from manufacturing plant to depot,material is in transit now, but due to some reason material calls back to manufacturing plant.
Since the excise invoice is raised and material move out of factory client can not cancel excise invoice from legal point of view & client has to pay excise duty for the material movement.
Please suggest how to take back goods to manufacturing plant without cancelling excise invoice.
We have suggested client as there is no provision to take back goods to manufacturing plant without cancelling excise invoice
and to take back material to manufacturing plant stock they have to cancel excise invoice and other related documents.
But client is asking for another options.So requesting you to please suggest any alternative ways for same.
Thanks,
Amit

client can not cancel excise invoice from legal point of view & client has to pay excise duty for the material movement
I don't think, there is a statutory rule which says, manufacturer should not cancel the excise invoice generated on their Depot plant. Justification can very well be given to Excise authorities and hence, ask your client to follow the normal process by treating this as Depot returns.
G. Lakshmipathi

Stock transfer between plants- 1 plant with no excise & 1 plant with excise

Dear Sir,
We have 6 plants working under SAP version 6.0 and in all the plants excise is applicable i.e. modvat can be taken. Now a new plant say X is coming up under the same company code in which excise modvat won't be applicable. In this scenaripo when we will do stock transfer from existing plants excise will be applicable on the material sent to plant X but at the time of receiving the material at plant X this excise amount must be inventorised on material as modvat is not applicable in this plant. Similarly when we despatch the material from plant X to other existing plants material cost will be with excise value.
Pl. guide me that how this scenario to be configuered.
Thanks in advance.
Rajiv

Hi Rajiv
<b>Only you need to do is</b>
In plant X which is not registered with excise, there you have no need to maintain excise related data of material master record i mean in J1id. So this will post your exsice amount to your inventory cost.
Secondly if material is sent from Plant X to excisable plant this plant X can not levi excise duty as its not regeisetered one.
Regards
Vivek
-- Reward if helful !!

Subcontracting with excise

Hello experts ,
Could u pls enlist the step by step procedure subcontracting scenario in which excisable material is sent out
Regards

Dear,
Please find the complete flow process for SUB CONTRACTING for your kind perusal.
"Award, if helpful"
Regards,
Prashanth Pai
3 Procurement of Subcontracting Materials u2013 Business Process Procedure
3.1 Procurement of Subcontracting Materials
3.1.1 Purpose
In Indian subcontracting process when you issue materials to a subcontractor, you need to keep track of what materials you have issued and when they have to be returned by subcontractor. The reason for this close monitoring has to do with Indian tax law. Under excise law 57AC, when you send materials to a subcontractor for processing, you are not required to pay any excise duty, even though the materials have left your premises. However, if the materials have not been returned to you within 180 days specified by the law, you will have to reverse any excise credit that you posted when you have purchased the materials. When you send material out of your factory premises you need to send with 57F4 Challan. In this process you are going to do the same.
3.1.2 Prerequisites
The following scenario specific master data must be created for operation of this building block and subsequent dependent building blocks.
u2022 Material Master record
u2022 Vendor Master record
u2022 Purchasing Info Record (Optional)
Ensure that Sub-Contracting as Info Category.
u2022 CIN Master Data (Refer User Manual u2013 Procurement of Stock Materials (Domestic))
o Chapter IDs
o Material ID and chapter ID combination (Ensure Sub-Contract check box is selected for the Materials that provided to vendor)
o CENVAT Determination
o Vendor Excise Details
o Excise Indicator for Plants
o Excise Indicator for Plant and Vendor
o Excise Tax Rates
3.2 Creation of Subcontracting Purchase Order
3.2.1 Use
A purchase order is a legal document used to record an individual purchase with the vendor. It also provides the vendor with a reference document to link to goods receipt and invoice verification processes. The purchase order is a commitment to a vendor for a given subcontracting activity, in a specified quantity at a predetermined price and delivery date.
3.2.2 Prerequisites
Components stock should be available for providing to subcontracting vendor.
3.2.3 Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics  Materials Management  Purchasing  Purchase Order  CreateVendor/Supplying Plant Known
Transaction code ME21N
3.3 Message Output
3.3.1 Use
A Purchase Order needs to be printed for transmitting to vendor.
3.3.2 Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics  Materials Management  Purchasing  Purchase Order  Messages  Print/Transmit
Transaction code ME9F
3.4 Transfer of Components to Subcontractor
3.4.1 Use
The Nature of subcontracting purchase order is that company will provide components to subcontractor. This process describes how to transfer post materials to subcontractor.
3.4.2 Prerequisites
Sufficient stocks of components should be available for making transfer posting.
3.4.3 Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics  Materials Management  Inventory Management  Goods Movement  Transfer posting
Transaction code MB1B
3.5 Creation of Subcontracting Challan
3.5.1 Use
It is statutory requirement to send the components to subcontractor with 57F4 Challan.
3.5.2 Prerequisites
u2022 Select the Sub-Contracting Material in Material and Chapter ID Combination of the Excise Master (J1ID) for the sending Material.
u2022 Ensure that the details of the receiving Material maintained in the Excise Master (J1ID).
u2022 CENVAT Determination of the Excise Master (J1ID) Maintained for the both sending and receiving Material.
u2022 Ensure that the Assessable value for the sending material is maintained in the Excise Master (J1ID)
3.5.3 Procedure
1. Access the transaction choosing one of the following navigation options:
SAP User menu
CIN Menu Indirect Taxes  Procurement  Subcontracting  Subcontracting Challans  Create
Transaction code J1IF01
Printing of Subcontracting Challan
3.6.1 Use
It is statutory requirement to send the components to subcontractor with 57F4 Challan.
3.6.2 Procedure
Access the transaction choosing one of the following navigation options:
SAP User menu
CIN Menu Indirect Taxes  Procurement  Subcontracting  Subcontracting Challans  Change
Transaction code J1IF11
3.7 Goods Receipt for Purchase Order
3.7.1 Use
Normally Goods are received from the Vendor as a result of a Purchase Order at the receiving plant
3.7.2 Prerequisites
Purchase Order
3.7.3 Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics  Materials Management  Inventory Management  Goods Movement  Goods Receipt  For Purchase Order  PO Number Known
Transaction code MIGO
3.8 Reconciling Subcontracting Challan
3.8.1 Use
After making Goods Receipt the GR has to be reconciled with the challan sent to subcontractor.
3.8.2 Procedure
1. Access the transaction choosing one of the following navigation options:
SAP User menu
CIN Menu Indirect Taxes  Procurement  Subcontracting  Subcontracting Challans  Reconcile Quantity
Transaction code J1IFQ
3.9 Completing/Reversal/Re-credit Subcontracting Challan
3.9.1 Use
This transaction is basically used to complete the challan if you have reconciled as stated above step. There may be cases subcontractor may not able to supply within stipulated 180 days limit then in this case also same transaction is used for reversal of challan or re-crediting the amount.
3.9.2 Procedure
1. Access the transaction choosing one of the following navigation options:
SAP User menu
CIN Menu Indirect Taxes  Procurement  Subcontracting  Subcontracting Challans  Complete/Reverse/Recredit
Transaction code J1IF13
3.10 Logistics Invoice Verification for Subcontracting Material
3.10.1 Use
In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.
3.10.2 Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics  Materials Management  Logistics invoice Verification  Document Entry  Enter Invoice
Transaction code MIRO

Intercompany Stock transfer order with excise

Hi,
Can anyone tell me about Intercompany Stock transfer order with excise step by step.
hoping to replu

Hello,
Create Stock Transport Order - ME21N
Create Delivery Challan (DC) - VL10B (this reduces the inventory from supplying plant)
Create Excise Invoice refering the DC created above - J1IS - Ref document type OTHR (Excise values are transfered in this step)
Do goods receipt against the DC (outbound delivery) - MIGO in receiving plant. Also capture and post the excise invoice cerated in J1IS.
Regards
Mahesh Naik

Customer Returns with Excise Duties.

Hi all,
Can any one explain the steps for Customer Returns with Excise Duties.
I have sold the Material to customer from Manufacturing Plat to customer.
Sales Orderm - VA01
Outbound delivery- VL01N
Pro forma - JEX
Excise Invoice - J1IIN
Invoice - VF01
Now customer wants to return the goods with the same Excise Invoice issued from Plant.
Return Order - VA01
Inbound Delivery - VL01N
Now what are the steps to capture the Excise Details..........?
We are using one more transaction (=/BEV1/SR0) here to keep the goods in to Unrestricted or Blocked stock and it will create Credit memo request automatically.
so please guide me is this step need to be done before Excise details are captured ?
It is very urgent to me. please send me the steps for the above mentioned scenario.
Thanking you.
Regards
Jaya

hi
create return order in VA01 with order type RE with reference to billing (assign order reason)
create delivery in VL01N and do PGR
go to VA02 and remove billing block
create billing document in VF01 with reference to return order.
DO EXCISE JV MAIN MENU IN T.CODE J1IH
SELECT ADDITIONAL EXCISE TAB
ENTER DELIVERY DOCUMENT NUMBER
SELECT DETAILS ICON IN THE EXTREEM LEFT OF THE APPLICATION TOOL BAR
ENTER MATERIAL NUMBER, QUANTITY AND EXCISE DUTY
SELECT DETERMINE G/L ACCOUNTS AND PRESS CONTINUE AND SAVE IT
EXTRACT RG23APART2 IN J2I5
IN PRINT RG23APART2 U CAN C THE OUTPUT
NOTE MAINTAIN NUMBER RANGES FOR RG23APART2.

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)?

Subcontracting process with excise duty??

hi all
Can anybody explain me about the subcontracting scenario with excise duty??
For example , i have cerated subcontracting PO for A material is finished material is exciseable.
To produce A material , i have provided ,B,C,D materials to subcontractor , those materials also exciseable .
this is my scenario , explain me with transaction code (Step by Step).
Explain me about excise duty accounting folw for above scenario.??
Thanks
SAP-MM

Hi,
During J1IS: -
CENVAT Payable BED - Cr
CENVAT Payable ECS - Cr
CENVAT Payable SECess - Cr
Excise Duty Paid - Dr
During J1IEX: -
CENVAT Input BED - Dr
CENVAT Input ECS - Dr
CENVAT Input SECess - Dr
CENVAT Clearing - Cr

STO process with excise

Dear Experts,
Please tell me scenario for Stock trasnfer order in Excise perspective.
Here i m doing STO for Finished goods for plant to plant within one Company Code.Material is sedning to other plant with Excise invoice J1IS ,that entry comes in RG1 excise register for supplying plant.But in Receiving plant,the excise entry should be as a Input i.e in RG23A .So please suggest me over this process ,because same material again going for selling from receiving plant and the excise entries would be in again RG1 Register.For that pupose is it required to change RG1 /RG23A1 in J1ID for time to time?

But while selling the same material from receiving plant,again i have to change RG1 in J1ID.So instead of changing again & again in J1ID is there any permanant scenario which maps my requirement?

Sales return with Excise

Dear SD gurus,
Can you please tell me, during sales return with Excise in J1IH, which process need to be selected.
Either "Other adjustments" or cancel "excise invoice".
regards,
Kumar

Dear Kumar
For updation of excise related sales returns, run T.Code J1IH and do the following:-
Customer Credit
Choose the Additional excise input the original excise invoice reference, document year, company code, plant and excise group and execute. There input manually what value you need to give credit and save.
Cenvat Debit
Choose Other Adjustment and here also, maintain the datas whatever you input as above and save.
thanks
G. Lakshmipathi

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

Foriegn trade EOU unit with excise bonds

i have a EOU(export oriented unit) which has to be brought into SAP though roll-out. Now do i have to use the foriegn trade for this or i can do it directly.
IF any one have any documents please forward to
Also let me know about the excise under bonds and other statuatory requirements involved.
[email protected]
regards,
Raghu.

Hi,
Plant 2000 Can send a material for Subcontracting against Subcontracting Challan ie 57F4, but Cant sell in domestic market.
Ans: - This can be mapped through following Subcontracting process in Plant 2000;
Creation and maintenance of 57F4 Challans for Subcontracting Process (Subcontracting without Payment of Duty)
1. Transfer Posting of components to Subcontractor (MB1B)
2. Creation of Subcontracting Challan (J1IF01)
3. Refer Subcontracting Challan at the time of GR (MIGO)
4. Reconciliation of Subcontracting Challan (J1IFQ)
5. Completion of Subcontracting Challan (J1IF13)
6. Generation of Annexure IV (J1IFR)
1000 Plant is Subcontractor for 2000 Plant. In this case I cant transfer stock from 2000 plant to 1000 plant through STO.
If 1000 Creates STO, 2000 has to create sales document and outbound delivey which is not applicable as per EOU laws.
Ans: - As per EOU law, you can not sale a material in local market (means you have to only export the materials fron this plant) that doesn't mean that you can not transfer the material from plant to plant.
1. ME21N - You create a Subcontracting PO in Plant 2000, keeping Vendor as Plant 1000 (Create Plant 1000 as Vendor)
2. MIGO - Transfer Posting > Others (Use Movement type 303 to transfer the stock from plant 2000 to plant 1000)
3. J1IF01 - Create Subcontracting Challan w.r.t. Mateerial Doc of 303 mvmt type)
4. MIGO - Goods Receipt > Others (Use Movement type 305 to receive the stock from plant 2000 to plant 1000)
Prerequisite: - In config. include 303 in movement tupe groups of issues (i.e. 0001)

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,

Plant is subcontractor with excise

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