Need Help

[Former Member]

Hi! Gurus,

I have a scenario where I have to send bulk material to subcontractor as that material is a part of the BOM. I know that standard system does not allow to do so. Please let me know if there is any other way to do that. How I will reconcile the bulk material from excise point of view in case of any alternate solution.

Thanks in advance.

Regards,

Uday

[Former Member]

Hi!,

Thanks for the reply. But still my issue is unresolved. I need to send bulk material to the subcontractor but system does not allow to do so through the standard way. Please let me know if there is any other way out.

Regards,

Uday

[Former Member]

Hi! Kunal,

Thanks for the elaborated reply. Can you please tell me the steps to send the bulk material to sub contractor.

Regards,

uday

[pankaj_singh9]

Hi,

Refer link;

[Subcontracting Process w/o Payment of Excise Duty|http://help.sap.com/bestpractices/BBLibrary/Documentation/J85_BPP_V2_EN_IN.doc]

Subcontracting Process

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 autoconsumption of components with 543 movement}

- Reconciliation of Subcontracting Challan (J1IFQ)

- Completion of Subcontracting Challan (J1IF13)

- Generation of Annexure IV (J1IFR)

Master Data

- MM01- Material Masters for Components and FG

- XK01 - Vendor Master (Subcontractor)

- CS01 - BOM for FG

- ME11 - Purchase Inforecord for Subcontracting

Configuration: -

- SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Subcontracting Attributes

Here maintain following;

Excise Group         XX
Excise TT            57FC
Subtransaction Type  01
 Subtran Type Text   57FC CHALLAN
 Subc. Period        180
 Rate-subcontracting
 Mvt Grp Issues      0001
 Mvt Grp Receipt     0002
 Filter Non exise
 EI Items            10
 No. range no.       01
 Ass. Val. /Exc Inv
 Subcon Output Type  J1IF

- SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Maintain Movement Type Groups

Here maintain following

MVT. Grp. MvT S
0001      101 O
0001      541 O
0002      542
0002      542 O
0002      543 O

- J1I9 - maintain No range for object "J_1I57FC" for series group

[kunal_ingale]

hi

u can send bulk material to subcontractor ,but it is to be consumed with in 180 day ,

if u have not consumed it then do following

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.

regards

kunal