Q's abt 57F4 Challan

[Former Member]

Dear All ,

Pl guide for the following :

1) If i am sending RM to vendor and receiving SFG , scrap is generated at vendor end , if i am not posting that scarp By 542 mvmt from vendor to our Plant , But total SFG Qty i received (Scarp is cming later ) can i reconsile my challan ?

2) In J1IFR , in Annexure IV one column stating Vendor scrap generated , Need i suppose to reconsile the same or is it for information purpose ?

3) what is the time limit for Challan reconsilation (90 days ?Or i can have as per our settings ) ?

4) If i am not making reconsilation of the 57F4 challan , whr is it affecting ? what is the impact in Accounts ? whr i need to see the same ?

Replay for all Question will be aapreciated .

Thanks& regards

[Former Member · Accepted solution]

Hi,

Answer for your questions -

1) You can reconcile the challan number of times. Suppose, your material is coming in lots, then you can reconcile the challan for every material document. After you receive full quantity of SFG, then also your challan will not be fully reconcilled, because some qty is wasted in scrap. When you bring the scrap back to your plant with mvt 542, you can reconcile the challan with this document & after fully reconciling you can complete.

2) The vendor scrap generated column is for information purpose only.

3) The time limit for challan reconcilation is 180 days, for which you will have to maintain the settings in your system. (I do not exactly remember the settings).

4) Until & unless you reconcile the challan, the same can not be completed. If the challan is not completed within the specified time limit, then you will have to repay the excise applicable on the RM sent to the sub-contractor.

Regards,

Prashant

[Former Member]

HI,

1) If i am sending RM to vendor and receiving SFG , scrap is generated at vendor end , if i am not posting that scarp By 542 mvmt from vendor to our Plant , But total SFG Qty i received (Scarp is cming later ) can i reconsile my challan ?

-- The scrap which is produced at the vendors end has to brought back by 542 Mvt type which is right. But while defining the BOM or the components in the Item details mention the scrap Qty also so that it will remain open.

2) In J1IFR , in Annexure IV one column stating Vendor scrap generated , Need i suppose to reconsile the same or is it for information purpose ?

-- Annexure IV coulumn provides the Information on which materials have been provided to the vendor, what processing has been done, what were the chargeds levied, What was the scarp Qty that was generated. If the scrap is not received along with the challan. Sometimes the scrap ia also sold which is equally important. So the net Qty of finished goods should be considered for the excise duty.

3) what is the time limit for Challan reconsilation (90 days ?Or i can have as per our settings ) ?

-- The goods are not excisable if the subcontracting goods sent for processing are received within 180 days to our premises. So if done within 180 days no excise has to be paid. So once every thing is done please reconcile the challan else it shall remain open till it is fully reconciled.

4) If i am not making reconsilation of the 57F4 challan , whr is it affecting ? what is the impact in Accounts ? whr i need to see the same ?

-- If reconcililiation is not done the challan will remein open.

Hope this helps...

Regards,

Prasanna.

Award if helpful