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.

Similar Messages

Subcontracting under Full Payment of Duty

HI
Subcontracting under Full Payment of Duty
Creation of Excise Invoice w.r.t. Transfer Posting Document (J1IS) --
Capture Excise Invoice at the time of GR of Finished Goods (MIGO or J1IEX) 
Post Excise Invoice (J1IEX) 
in order to process the abve prcess , pls advise what are the preequiestes??? where we need to use JEXC cond type?

Hello,
You create a subcontracting PO. Create a Transfer Posting document for 541. This 541 doc can then be used to create an EI through J1IS.
On receiving the goods back from the subcontractor you have to use the option "Only part 1" or even no excise entry at MIGO. the reason for this is to avoid wrong updation of 543 O movement in part 1 table.
You may then update part 1 for 101 through J1I5 and then create Excise Invoice with reference to the GR document. If you see two line items one for the output and the component, you should delete the component from the incoming EI creation screen in J1IEX.
Regards
Mahesh Naik
24.09.2009

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

Subcontract Process with vendor supplied component

Hi,
We have a subcontracting process, when we send 3 components to the vendor, the vendor apply another component and return the semi finished to me.
I have a BOM of this semi finished Good that includes all the 4 components.
We sent the 3 components via mb1b.
We create a PO of the Semi Finished Good if we verified the components the 4 components are there.
When we try to receive via MIGO and click in verify The 3 itens that I send is OK ... But the item that is supplied by the vendor show me an error message that there is no stock.
What should I do to receive the component supplied by the vendor ?

Hello,
1. Create subcontracting with item category "L" and second line item in same PO enter with Item cateogroy means STD.
2. Item level of the Delivery address tab, tick SC Vendor and enter the same Vendor code there.
3.Go for GR for only for 2nd line item first. This stock will automatically picks 101 O Mvt, and u can view this stock as Vendor stock.
Check MMBE stock overview , Material is showing provided to Vendor at plant level.
4. Provide other 3 components with MB1B- 541 Mvt.
5. Go for second GR for finished Product.
4th Material shown as Material provided to Vendor in stock overview. if you want to get back that same material to your stock. reverse that stock use t code MB1B with help of Movement type 542.
Or else.
Through subsequnet settelement you can send the 4th Material to your subcontrcator MB04.
Regards
Mahesh Naik

Meaning of With Payment of Duty and Without Payment of duty

Dear All,
Can anybody please elaborate as to what is the difference between "With" and "Without" payment of duty. Also how the is the above helpful when i am using the tax codes of type CENVAT in any document.
Regards,
Rahul

Hi Rahul
without payment of duty is used for Export of Excisable Goods and sale of those goods which are exempt under certain excise notifications.
In export of excisable goods, we will not pay any duty to excise department but need to calculate to reflect in A.R.E. 1 report.
Regards
Kamlesh Vagal

Subcontracting Process with Serial Number

We activated BADI for MRO Process. As per the sap help the MRO Process will support subcontract serialized and NON -Serialized rework parts.
The Process is fine with NON -Serialized works. But GR for the subcontract is getting error on using the same serial number .it is accepting if we assign different serial number. We want to assign the serial number to the subcontract purchase order item along with the material number and expect to be returned by the subcontractor with the same material and same serial number.
But we are getting the message like this Stock data of serial number 0988900 not suitable for movement. How to get rid of this error? 0988900 is the serial number assigned Original to the equipment.
Thanks
Jeevan

Dear Jeevan,
I am facing the same problem as u had before. Can u tell me as how to go about?
I will explain the glimpse of the problem:
I am sending one material (With serial No) for repair to vendor.After repair , when i m trying to do GR against P.O the same serial if we entered, its not taking. It is throwing the same error.
Please rectify.
Regards,
Prasanna.

Subcontracting Process with Customer owned stock

We are looking for SAP supported process where the customer sends us components along with a sales order for a finished good. The components have to be received into customer owned stock and will be used (for instance as part of the BOM) to produce the finished good ordered by the customer.
Does anybody have a solution for this process within SAP?

Hi,
1. Define your customer materials (both component and finished product) as non valuated material, because these materials not effecting the our inventory.
2. create Bom for finished product.
3. Create sales order for service charges with reference to your customer PO.
4. Receive the component from your customer through 501 E (with out po sales order specific).
5. Create Production order with reference to sales order through MRP or manual.
6. confirm the production order and receive the
finished product.
7. Delivery to customer as in normal sales process.
8. Then create performa invoice or billing to your customer.
You can follow the above process, if have any further quarry please let me know.
Subrahmanayam

SubContracting Process with Standard PO

Normal Procedure in our company :
1) Sub Contracting BOM created by SCM dept
2) Sub Con PR created by SCM dept
3) Based on that Sub Con PO created by commercial dept
4) transfer posting of components against Sub Con PO
5) then GRN of the Finished Material.
Here the Fi Entries are :
FINISHED PROCESSED STOCK   Debit
GR/IR-SUB CONT SFG                Credit
COGM-SFG. MATL.                    Credit
PROCESSING CHG MFG             Debit
The above entries are totally acceptable to the accounts dept as this is the standard process.
Now some exceptional situation is there:
1) SCM dept is not ready to create Sub Con BOM as there are many complications as it is for weaving purpose.
2) Now in this case in PR or PO components have to be entered manually, which is very herculean task , as there are many components involved for making the finished stock.
now the current situation is:
1) SCM dept is only creating PR for the Finished Product without any components
2) The commercial dept creates a standard PO for the finished product.
3) Then once in a month transfer posting happens for all the components without reference to PO
4) Now when the GR happens for finished product, the FI entry is as follows:
         PROCESSED STOCK            DEBIT
         GR/IR-SUB CONT SFG         CREDIT
As there are no components in PO, Processing charges is not debiting. Now accounts dept has to manually settle the FI Entries and lost the track.
My requiremnt:
With this current process itself how we can go about.

Hi,
Components required to process an FG material must be entered either by creating a BOM or manually during the creation of the PO. System decides the consumption of components based on the above entries only. There is no shortcut.
However you can try the following.
You have mentioned that one department used to enter the components manually. There should be some reference or logic for doing this (What I understand here is that case to case components quantity is verying). So you create a BOM with all components. Then PO creator can manually delete the components which are not required for the perticular PO.
Parallely you can explore the possibility of using variant configuration for this scenario.
Regards,
Krishna A S V

Job Work with Payment of Excise Duty

Dear Gurus,
We have done full process of job work without payment of excise duty. but we also want job work with payment of excise duty. we didn't found any way to do this job.
When we make subcontracting entry with 541 mvt type and then make its excise challan with J1IF01, the all field related to excise value is disable thats why we can not put the value in it.
Please suggest something.
Regards
Pawan Sarda

Hi
As per my knowledge,If you are sending your material with full excise value to your subcontracting vendor means its one type of saleing
Here you are sending material material with excise duty means its sure you dont get back your material in 180 days ,so while doing finsihed material your vendor will send finsihded material along excise value and you will capture tha excise value
I think In this scenario subcontracting Challan don't come in Picture
steps are follows
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.
Capture Vendor Excise Invoice at the time of GR of Finished Goods w.r.t. Subcontracting PO (MIGO)
Post Excise Invoice for FG received from Subcontractor (J1IEX)
Regards
Kailas Ugale

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

Sub contract process with excise documents

Hi
I have a scenario in my project
MUM1- Mumbai plant
IN01    -Vadodara Plant
Mumbai is used only as a store for raw material (imported/Local)
Process is from Mumbai raw material (child component) is to be shipped to sub con vendor (1000) any where in India Ex -->Banglore
After processing Subcon vendor(1000) will send finish component to IN01 vadodara plant.
How the process will be mapped for Excise documentation.
required is Cenvat credit flow from Mumbai to Vadodara.
Regards
Ajit k

hi
Subcontracting under Full Payment of Duty
u2022     Creation of Subcontracting PO (ME21N)
here give the delivery add of vadodara palnt ,and the vendor of banglore
u2022     Transfer Posting of Components to Subcontractor (MB1B/ME2O/MIGO)
u2022     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.
Accounting Entry: -
CENVAT Input BED - Cr
CENVAT Input ECS - Cr
CENVAT Input ECS - Cr
CENVAT Suspense A/c - Dr
u2022     Capture Vendor Excise Invoice at the time of GR of Finished Goods w.r.t. Subcontracting PO (MIGO)
u2022     Post Excise Invoice for FG received from Subcontractor (J1IEX)
Accounting Entry: -
CENVAT Input BED - Dr
CENVAT Input ECS - Dr
CENVAT Input ECS - Dr
CENVAT Clearing A/c - Cr
Master Data
u2022     MM01- Material Masters for Components and FG
u2022     XK01 - Vendor Master (Subcontractor)
u2022     CS01 - BOM for FG
u2022     ME11 - Purchase Inforecord for Subcontracting
regards
kunal
award if helpful

Serial numbers for subcontracting process

Hello Experts,
We are using SAP ECC 6.0 and trying to implement the subcontracting process with serial numbers. This scenario is focused on those materials that we need to keep track on how many times it has gone to repair (for example, a motor) by specific item. Suppose there's a material called "Material A". However, there are MANY "Motor A"'s, and thus, the need for serial number to keep track on the number of repairs each one has had.
So, having said that, the scenario is working so far. However, the user CAN'T type in the serial number of the material at the REQUISITION LEVEL. This can be done at the PO level and at the goods receipt level.
This brings a problem since the Purchasing dept. doesn't know the serial number. This information is known by the user, but there's "serial number" functionality in the requisition. Is there a configuration for this? Could it be possible for the serial number to be in the requisition and then inherit it to the PO?
We want this in order to automate the process.
The configuration we made was in the "Plant Maintenance and Customer Service" section, using procedures MMSL "Maintain goods receipt and issue doc." and POSL "Serial numbers in purchase orders". There's no procedure for purchase requisitions. If this can be also done from a Work Order, that will be just fine.
Let me know if it is possible or if you have any idea on how to do this.
Regards,
Gilberto Gallardo.

Hi,
Serial no can be used for the following business transactions.
1. Goods Receipt/Goods isssue and other inventory postings.
2.sales orders and delivery notes
3.maintenance orders
4.production orders.
Settings:
1. create a serial number profile in customising.
2. Assign the serial number profile in the material master record in work
scheduling view for fert and raw material in plant data / stor2 view..
Business procedures may be assigned in configuration to a serial number profile.
The assignment to the serial number profile determines if serial numbers are required , can be assigned, must be assigned,are assigned automatically
MMSL : Goods issue , receipts,stockj transfers,stock transport orders
Thanks
nandha

Processing with Production Version

We have planned order with one level BOM (Discrete Mfg. Scenario).
FERT and ROH . in production version 1.
While converting this planned order to production we are choosing production version 2 which consist of two level BOM.
FERT - HALB and ROH.
When we choose production version 2, Order reservation are generated in system for HALB.
How to process this HALB if it is to be
1) Processed inhouse.
2) Given to Subcontracting.

Dear
In your Senario U have choosen Two Production version PV-1 &PV-2 inorder to clear reservation happen in HALB u need to select the Production version -2 because from roh you are making semifin then fg first u need to get ROH in Unrestricted then Create SFG and Issue ROH to sfg then GR SFG unrestesticed Stock issue To FG while confirmation then Do GR of FG
then there wont be any Reservation.
And For Subcontracting U need To decide Which Operation And which Material is going
Operatin subcontarcting for Material Keeping PP02 in ca02 As external Key then Create a Purchase Info Record
Issue this material To Subconctarcting With Movement type 541 with refrence to PO
and receive this Through 101 GR
Please Follow This Link for more Steps
[http://help.sap.com/saphelp_46c/helpdata/en/f4/7d322744af11d182b40000e829fbfe/content.htm]
[http://wiki.sdn.sap.com/wiki/display/SCM/Subcontracting+Process]
with regards
pushpalas

Subcontracting process with payment of duty

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