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

Similar Messages

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)?

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

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.

Sub-contracting with excise duty..?

Hi all
can anybody explain me the sub-contracting process with excise duty , here we are going create excise invoice(J1IS instead of sub-contract challan) and what abt material document for sending out materials
whether v an use excise invoice as material transfer document to jobber place or what.
Please explain me with example ..
Regards
sap-mm

hi ,
you can try:
1.Do the MB1A with 202 mvt type to get back the material from the Work location Cost center to Storage location.
2.Create the Subcontracting PO without payment of excise duty ie., with subcontracting challan. Here the components provided to the vendor & material at item overview should be the same.
3.Do the MB1B - 541 Mvt type transfer posting.
4.Create the subcontracting challan w r t material doc by J1IF01
5.Do the MIGO for SC PO.
6.Reconcile the SC Challan.
7.If the qty is fully reconciled then you can complete the challan.
8.Do the LIV for SC PO.
9.Do the MB1A with 201 MVT type to issue the material to the Work location.

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

,

Material cost with Excise Duty and VAT

Dear All,
Please can you suggest how to capture cost of the material with Excise Duty and VAT during GR.
Also kindly let me know the settings required to maintain for caputring the same. We are using TAXINN for tax calculation purpose.
best regards,
Suresh

Hi
Below given the details for TAXINN
Procurement
Set up the following Access Sequences in the the IMG under Financial Accounting ® Financial Accounting Global Settings ® Tax on Sales/Purchases ® Basic Settings ® Check Calculation Procedure ® Access Sequences:
JTAX
JST1
Set up the Condition Types for the following conditions in the IMG under Financial Accounting ® Financial Accounting Global Settings ® Tax on Sales/Purchases ® Basic Settings ® Check Calculation Procedure ® Define Condition Types:
1.     MM Excise Conditions
JMOP     IN: BED setoff %
JMOQ     IN: BED setoff Qty
JAOP     IN: AED setoff %
JAOQ     IN: AED setoff Qty
JSOP     IN: SED setoff %
JSOQ     IN: SED setoff Qty
JMIP     IN: BED inventory %
JMIQ     IN: BED inventory Qt
JAIP     IN AED inventory %
JAIQ     IN AED inventory Qty
JSIP     IN SED inventory %
JSIQ     IN SED inventory Qty
JMX1     IN: A/P BED setoff
JAX1     IN: A/P AED setoff
JSX1     IN: A/P SED setoff
JMX2     IN: A/P BED inventor
JAX2     IN: A/P AED inventor
JSX2     IN: A/P SED inventor
JECP     IN:A/P e-cess setoff
JECI     IN: Eces inventory
JEX1     IN: A/P ecs setoffT
JEX3     IN: A/P ecs invT
1.     LST/CST/VAT Conditions
JIPS     IN Sales tax setoff
JIPC     IN Central sales tax invoice
JIPL     IN Local sales tax invoice
JIP5     A/P RM Deductible
1.     Service Tax Conditions
JSRT     A/P Service Tax
JEC3     A/P ECS for ST
Define the Tax Procedure according to the settings in the figures below.
You can do this in the IMG under Financial Accounting ® Financial Accounting Global Settings ® Tax on Sales/Purchases ® Basic Settings ® Check Calculation Procedure ® Define Procedures.
Set up the following Account Key in the IMG under Financial Accounting ® Financial Accounting Global Settings ® Tax on Sales/Purchases ® Basic Settings ® Check and Change Settings for Tax Processing.
1.     VS6     Input Tax
Assign Tax Procedure to the country.
You can do this in the IMG under Financial Accounting ® Financial Accounting Global Settings ® Tax on Sales/Purchases ® Basic Settings ® Assign Country to Calculation Procedure.

How to do Payment against Proforma invoice with excise duty?

Hi all
I am using SAP B1 9.0
I have a scenario like, I want to make a proforma invoice partially/fully for the customer order(sales order) with excise duty and I will receive payment against this invoice.
I tried to use AR down payment request , thus I can create proforma invoice for partially/fully and I can do incoming payment also, but the problem is I can't use Excise duty(CENVAT) in down payment document. Is there a way or work around for my issue?
Thanks in advance.
Pravin

Hi,
In standard SAP B1, we can't select Excise tax code in Down payment request document and it will not allow also
Find below the workaround solution:
1. When you are raising Down payment request, enter DPM value including Excise Duty. i.e. If the base value is 1000 and Excise duty 120, enter 1120 in DPM value, the percentage will become 112%. In case of partial also calculate partial excise duty and add in base value and enter in DPM value.
2. Based on Down payment request book the incoming payment
3. Adjust Down payment request in final AR Invoice it will get adjusted in total value.
Note: The Excise duties will book at the time of OEI booking (as per legal req). We can't book the excise at the time of Down payment.
Regards,
Kiran

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

Sample invoice with excise duty only

Hello Experts,
User is sending free samples to customers. Presently, normal sales invoice is raised and credit note is issued in SAP. We need a separate Sample Invoice with zero value but with Excise
Duty Payment.
How to achieve this requirement? suggestions?
Regards,
Raj

Dear Raj
Check these threads for making sample sales
[Sample sales |Sample sales]
[Sample sales scenario configuretion |Re: Sample sales scenario configuretion]
thanks
G. Lakshmipathi

Depot Transfer process with Excise Credit.

Hi, Gurus.
I am dispatching goods from Mfg. Plant to godown(Not registered for excise) but belongs to manufacturing company only.
i am using STO process with Excise invoice creation.
later i am taking goods back from godown to Mfg. Plant(not selling from godown) through STO process.
here i dont want to pay excise whereas i want to take excise credit of already paid excise.
How to map this????
Reg,
Amol

Hi,
Follow the below mentioned procedure;
1. ME21N - Create a Returns PO (Activate "Returns" indicator for PO line item)
2. MIGO - Goods Receipt > Purchase Order (Returns PO) (Here system will hit Mvmt type "161" and you can also select Un-restricted/blocked stock from where you want to return the stock)
3. J1IS u2013 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 161 mvmt, Doc Year, Series Group, Excise Group and Vendor
Here check BED, ECS and SECess values to be reversed and click on u201CSaveu201D button to post the excise invoice.
4. J1IV - Post and Print Outgoing Excise Invoice.
5. MIRO - Credit memo w.r.t. Returns PO.
Regards,
Mahesh Wagh

Consigment process with excise processing

Hello,
I would like to know the complet vendor consigment process with Excise Processing.
Thanks
Manish

Hi,
      Process:
                        Before you can order a material from a vendor or post a goods receipt to consignment stock, you must maintain the consignment price for the vendor in an info record. The price is required for material valuation and accounting purposes.
If you order consignment material from several vendors, the system maintains the consignment stock separately for each vendor, since the individual quantities of the material can have different prices with each vendor.
                     You can order goods from external vendors as vendor consignment goods. You carry the goods in the vendor consignment stock in your site and therefore they remain the property of the external vendor (special stock manager) and do not belong to your valuated stock.also they are not considered for your MRP planning.
This contains the following main functions:
·        You can order goods from an external vendor as consignment goods by setting the Consignment item category manually in the purchase order.
·        You can transfer goods in the consignment stock of your site to other sites. To do this, you post goods manually from the consignment stock to your own stock. This creates a legally binding contract with the external vendor.
           Settlement of the withdrawal is done regularly at an agreed time for eg. quarterly,half yearly...
Activities in Materials Management:
Activity:                     Display Consignment Stocks/ Settle Consignment/Pipeline Liabilities
Transaction Code:       MB54 /    MRKO    Respectively...
Hope it helps you clear the basics of consignment...

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.

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.

Subcontracting process with excise duty??

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