good receipt in subcontracting issue

[Former Member]

Hi,

What are the steps and T codes in Good reciept in subcontracting process if finished goods are send after completion of 180 days which is the subcontracting period and if only raw materials are to be sent?

What will be the status of the chaaln and how excise credit is handled in this case.

Regards,

V

[Former Member]

Hiiii,

In subcontracting process,

1. Raw materials are sent to the subcontractor for processing into finish goods through subcontracting challan and in that no excise duty is debit to the excise and this challan includes only approximate value of goods.

2. The subcontractor needs to send back the material within 180 days of receiving the material into subcontractor premises, in case if he fails to send the material within 180 days then the company needs to debit the CENVAT duty, the process as -

If the allotted number of days elapses and the subcontractor has not returned some or any of the materials in the challan (status: Posted or Assigned), you must reverse the excise duty that you have credited to your CENVAT account. The scrap has to be returned by the subcontractor. If it is not returned, the excise duty for the scrap has to be reversed.

This function sets the status to Reversed. From here, you have two options:

u2022 If you do note expect the subcontractor to return the materials, you can complete it.

Complete

1.From the SAP Easy Access screen, choose Logistics u2192 Procurement u2192 Subcontracting u2192 Subcontracting Challans u2192 Complete/Reverse/Recredit.

2. Enter the challan number and year.

3. Choose .

4. Select Complete challan.

5. Save the challan.

u2022 If you do expect the subcontractor to return at least some of the materials, you can leave it as it is for the time being. Then, when the materials arrive, you can recredit the excise duty to the account .

Recredit

If a subcontractor returns materials after the return date, you can recredit the excise duty credit that you have reversed.

Recrediting the CENVAT Account

1. From the SAP Easy Access screen, choose Logistics u2192 Procurement u2192 Subcontracting u2192

Subcontracting Challans u2192 Complete/Reverse/Recredit.

2. Enter the challan number and year.

3. Choose .

4. Select either of the following options:

u2212 Take recredit for receipts

This leaves the challan open for further goods receipts.

u2212 Take recredit if any and complete challan

This completes the challan and writes off finally any CENVAT credit that you might have been able to claim.

5. Save the challan.

Rewards if it helps

Regards

Goutham

[Former Member]

Thanks Gautam for replying ,

adding to above what are the tcodes envolved in this and what are the number steps along with T codes that are envolved in this.

As i am preparing the user manual for the same.

[Former Member]

Hiii

Please refere the below link

http://www.sap-img.com/materials/sub-contracting-cycle.htm

Regards

Goutham