Subcontracting process - Non excisable materials

Dear all,
What is process in SAP for sending non excisable material to subcontractors & receipting finished material ?
Here material is not sent on 57F4 Challan.
Jeyakanthan

If material is noexcisable then no need to send the document with J1IF01 (subcontracting challan) u can send the material to vendor with 541 movement type and for this movement type u can configure the print out put format for 541 movement and send the material on this new formate for 541.
As material is nonexcisable, then there is no need to keep track of material in Annexture IV so subcontracting challane not require.
hope this makes things clear

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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

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

REVERSE SUBCONTRACTING PROCESS WITHOUT 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 without 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 annexure -2 with first part updated.
3.     When the client receives the material in the Annexure -5 register first portions qty is updated.
4.     Raw material issued to production, the issued qty updated in Annexture-5 register is updated in the second portion.
5.     Finished product received by stores from production the received qty updated in Annexture-5 register in the second portion.
6.     The received Raw material processed by client converted to finished product partly. Part of the finished product is issued to the customer against the sale order with annexture-6 with Annexure -5 register second portion update.
7.     All the remaining raw materials converted to finished product & it is the last consignment issued to the customer against the sale order with annexture-2 part-2 updated. And the issued qty is updated in the Annexture-5 register second portion updated.
8.     In this process all the movements of the material is updated in the Annexture-5 register.
Pl giude to maintain the above process ican be mapped in cin
Regards
UMAPATHY.M

This can be mapped in SAP but there is no standard Tcode to do this. You have to develop Z Transaction code with the help of ABAPer.

MM Process of excisable materials

Hi,
As for excisable material first we make the PO, then ref. to that PO when we receivd the material first we are doing the part1 in J1IEX here we are getting the part1 number after that we are making Gr with MB01, ref. to that part1 number the after GR, we are doing J1IEX PAERT2 ref. to part 1 number. I want to know what are the next steps which are needed to complate the MM as well as finanace process, and in J2I5 what is effect after J2I5.
regards,
zafar

Hi,
J2I5 is user for the excise entries register extraction after J2I5. Is done go & check it in J2I6 - Print Excise Registers,
J1IR - Register download from SAP to submit to the Excise Department.
pherasath

Account entries with excise & without excise for Subcontracting process.

Please let me know the Account entries with excise & without excise for Subcontracting process.
Regards
PBR

hi..
check these links...
Accounting entries for subcontracting
and
Subcontracting process with excise duty??
It may help u..
Thanks

Excise tab comes for non excisable vendor also

Hi,
I am facing the issue at the time of GRN that I am getting excise tab for the non-excisable materials also.How can i remove this error message and excise tab for non-excisable vendors.
I didn't maintain the Excise details for Non-excisable vendor and tax code selected as VAT in purchase order.
Regards,
Dinesh

Hi,
In MIGO, excise tab appears in following cases:
1) When we maintain material & chapter ID combination for that plant.
2)CENVAT Determination
3)Vendor excise details.
If this material is not excisable/CENVATABLE, then select the option "No excise entry" at header excise tab & post the document.
Regards,
Piyush

Excise Invoice Tab in MIGO for non-codified materials

Hi!
While doing MIGO against PO, for non-codified materials ( No material code, Account assignment in P.O - F), Excise Invoice Tab Pop-Up is coming in MIGO. There is no excise related master data maintained in J1ID.
What could be the reason? Can any body suggest in this reg..
I am using ECC 6.0
Thanks & Regards,
Gopi Chand

Hi,
These options are coming from Excise Group settings.
Go to : SPRO-Logistics General-Tax on Goods movements-India-Basic settings-Maintain Excise Groups-in 'MIGO Settings' tab, select the check boxes, accordingly you will get the options in Excise Tab of MIGO screen.
Hope this will resolve your issue.
Regards,
Gopi Chand

Options in excise tab ( subcontracting Process)

HI,
Subcontracting business process
i am getting No excise duty, Create RG23D, and create RG23D for existing excise invoice options in Excise invoice tab at MIGO.
i have checked above settings in the system...but still the same error
please suggest
Regards,
Girish

Hi,
If you are making a process of Subcontracting , then you should be able to get Refer Subcontracting Challan in MIGO , for that in CIN--> Plant Setting you should REMOVE Tick from Depot against that plant also check that for the Excise Group if it is a subcontracting process Depot Setting should NOT be there.
If you put a tick against Depot in CIN --> Plant Setting and Depot Setting for the Excise Group, you will get RG23D tabs in MIGO
Regards,
Vikas

Subcontracting process to scrap expired materials??

Hello experts, I have following situation at the client and I need to find a solution ASAP.
(1)Client wants to scrap expired materials using Third Party Company.
(2)I am thinking of using SAP Subcontracting process to execute.
(3)I did the goods issue to the Third party Company.
(4)Now I donu2019t want any materials or components coming back at the time of GR, other than the service from the Third Party Company for scrapping of the materials. How to execute this process???
Any advice is greatly appreciated. Thank you.

Hello experts, I have following situation at the client and I need to find a solution ASAP.
(1)Client wants to scrap expired materials using Third Party Company.
(2)I am thinking of using SAP Subcontracting process to execute.
(3)I did the goods issue to the Third party Company.
(4)Now I donu2019t want any materials or components coming back at the time of GR, other than the service from the Third Party Company for scrapping of the materials. How to execute this process???
Any advice is greatly appreciated. Thank you
Here is what I think:
1) in case we are sending the material to the third party then why it is not a direct selling of the scrap? It can be treated as a scrap selling to the third party as a customer.
please explain me the scenario as why the third party is required .It is interesting one to solve then

Non-Valuated Materials Purchasing Process

Hi,
Can some one please explain step by stem the process of purchasing for non-valuated materials. From PR to PO e.g. Account Assignments etc the whole works. If any one has any documents or screenshots that would be greate to just email them to me.
1)When Creating a requsition it asks for an Account Assignment why?
2)It also asks for a valuation price it doesn't accept 0 why? This is a non-valuated material and free?
I am having problems as I have approval levels setup via classifications for all indirect purchasing from account assignment K if for all non-valuated materials I have to create reqs via account assignment K they will require approvals. I don't want that.
please help points will be awarded
thanks
ADeel

U NEED To create the material master with unbw or nlag material type
> create pr
mention the material code and in the valuation field u can put the price of material for internal valuation
mention the account assign. categ. K
now the question is that you do not want to make use of the aac K THEN LET ME TELL U ONE THING
for those material types having no quantity/ value updation it is must that u mention the account assignement category
becuase if u r procuring the material but not storing it then it means u r directly consuming the goods at gr hence u need to tell the system where has the goods gone after gr ............and u r doing this via AAcategory
--->po
if u wan to recive free of cost goods then u need to mark the check box in po in front of your line item ...........

Returns in subcontracting process

In subcontracting Process once materials is delivered by vendor and if the material has to be sent back to vendor whatis the Procedure? If the company is in bangalore and vendor in Mumbai what are the documents needed for return?

Hi,
If material is excise and Returnable(by vendor) plz follow this procedure..
a) Issue Mb1B with 541 mov type and create Challan in J1if01make 541 mov type doc as Delivery note Doc
If material is excise and Non-Returnable(by vendor) plz follow this procedure..
b) create return PO(ME21N) and do GR 161 mov type..
regards,
Priya

Subcontracting process with payment of duty

Hi SAP Experts,
I am new in SDN, In my company we have start new process of excisable material subcontracting. I have create po with zero tax code and entered manual excise condition JEXC. My component item is RG1. when i have transfer material with 541 i have create excise invoice. when i am recd finished product from subcontractor i want to capture. but i don't know how to capture excise invoice w/o purchase order (EWPO) and what config req for EWPO & JEXC condition ?
can anybody please guide me.
Regards,
K. Mehta

Dear K. Mehta,
Subcontracting Attributes:
Logistics General -> Tax on Goods Movement -> India -> Business Transactions -> Subcontracting -> Subcontracting Attributes
Excise Group
Excise TT
Sub Transaction Type
Sub Tran Type Text
Subc. Period
Rate-subcontracting 'Leave it blank'
Mvt Grp Issues
Mvt Grp Receipt
Filter Non excise 'Leave it blank'
EI Items
No. range no.
***. Val. / Exc. Inv.
Subcon Out Type 'J1IF'
Remaining values as per your scenario.
Maintaining Movement Type Groups:
Logistics General -> Tax on Goods Movement -> India -> Business Transactions -> Subcontracting -> Maintain Movement Type Groups
<b>Output Determination</b>
Maintaining Access Sequence for Subcontracting Challan:
Materials Management -> Inventory Management and Physical Inventory -> Output Determination -> Maintain Access Sequence
Maintaining Output Types for Subcontracting Challan:
Materials Management -> Inventory Management and Physical Inventory -> Output Determination -> Maintain Output Types
Maintaining Output Determination Procedure:
Materials Management -> Inventory Management and Physical Inventory -> Output Determination -> Maintain Output Determination Procedure
Let me know your mail id, if you need further information. I shall forward you the corresponding document.
Regards,
Naveen.

Split valuation for non-valuated materials

Hi dudes,
We are implementing SAP for our Subcontractor.
our SC receive all components from our company ( on free ) but sometimes they purchase the same material themselves for other uses. so we decided to use split valuation to separate valuated and non-valuated materials.
I did configuration and created 2 valuation type ( valuated - nonvaluated )
when I create Purchase order it askes for valuation type but even when I use non-valuation type in PO it asks for price!!!!
do any of you have used split valuation for this target?
have the same problem?
what should I do actually??

Hi,
Is someone in the subcontracting plant going to do a process order on the materials you send them? Or are you only going to track the finished inventory once it reaches your plant?
In the first case:
1) Create a STO to the SC plant. This stock will have to be priced.
2) Inventory reaches SC plant. They perform production process.
3) finished inventory is sent using another STO.
2nd Case:
1) Create a SC vendor using the SC plant as a vendor.
2) Create a SC PO to this vendor using this vendor and transfer goods to him. In this case, goods are transferred for 'free' as they really belong to you and not to the SC
3) Once the production process is over and the finished product is sent back to you, do a GR. The raw material sent to the SC will be consumed.

Subcontracting process - Non excisable materials

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