RG1 for raw material sale

[Former Member]

Hi,

Our client sells raw materials from plant to plant, for some tax saving purpose, but in RG1 register only Finished goods can be updated right, which takes the reference from J1ID, (RG1), but for raw materials we maintain as raw materials in J1ID.

The issue is, our client wants even the Raw materials which are sold to be updated in RG1 Register.

RG1 will not get updated before excise invoice raised, as per our system because we are using ztransaction to update RG1.

Edited by: Praveen on Dec 31, 2008 7:32 PM

Edited by: Praveen on Dec 31, 2008 7:55 PM

[Former Member]

Thank you all for your valuable reply,

But any we have Convinced business not to update Raw material sales in this register. Use have to maintain Manual register, any how raw material sales are very less.

Thanks u all once again

[Former Member]

Hi, Sorry for delay

I spoke with user and tried to convenience that Raw material sale will not update in RG1.

But they are using a procedure called Clearance procedure to sell raw materials. So this procedure is that while clearing raw materials, and going out of factory, excise duty is charged. Hence they use this procedure to sell raw materials to their other own plant as well as to some customers.

So any how it is excesiable, it should be registered in RG1 register.

Any idea about Clearance procedures in SD... please reply...

Thank you

Praveen.....

[Lakshmipathi]

Dear Praveen

To my knowledge, only two options are there to address your requirement.

- One is already suggested by Mr.Muralidhar by which, you have to keep on changing the material type in J1ID. That is while inwarding the raw material, in J1ID, the material type should be RAW MATERIAL and again you have to change the material type to RG1 before invoicing. But in this process, there is every chance of errors to happen.

- The other method is what I have proposed by which you have to change the material code and maintain the material type to HALB.

With the above process, while inwarding the raw material, your RG23A register will get update and similarly, while invoicing, your RG1 register will get updated.

Now it is upto you to convince the client as to which option they would like to go for.

thanks

G. Lakshmipathi

[Former Member]

Thank you for your valuable suggestions

Mr. Amit Yadav, Mr. Lakshmipathi , Mr. MBS

I will delivery all your inputs and discuss with user.

[Lakshmipathi]

Dear Praveen

While I fully agree with what Mr.MBS has suggested from SAP point of view, still I would not recommend to go with that suggestion due to the fact that from Excise point of view, you are not suppose to sell any raw material from a manufacturing plant, without any process.

In fact, in one of my friends' manufacturing unit, their Central Excise range authorities have raised objection for the same issue and they had to change the raw material code to HALB / FERT while selling. May be from your end also, your client can check with their Excise Range office whether they have any objection in doing so. If they give concurrence, you can go with Mr.MBS suggestion without any second thought.

thanks

G. Lakshmipathi

[Former Member]

Hi

Please note that "you can sell the raw material with the same material code (material number), It is not necessary to maintain different material code to sell the material in order to update RG1.

Please maintain the RAW MATERIAL CODE which you are selling as RG1 (Finished Goods) in J1ID.

While doing G/R for this RAW MATERIAL change the material type from RG1 (finished goods) to raw material".

By this way you can update the RG1 register. This is the STANDARD PROCESS RECOMMENDED BY SAP.

Regards

MBS

[Former Member]

Dear MBS,

I accept your idea, but in daily operation Different user do GR and Sales. So definitely there will be operational issues.

Can u suggest any other solution.

[Former Member]

Dear Praveen,

I understand your concern, There should be lot of care taken by the user while processing the transaction (Well trained/educated in each process). SAP delivers standardized product. which will be standardized across companies. But SAP cannot come out with solutions to each and every customer requirement.

If you want to sell the same material (raw material) then you have to follow the instruction given by me. Which of SAP STANDARD SOLUTION FOR THIS ISSUE. Else you have other options which my other collegues Mr. Lakshmipathi and Mr Amith suggested.

Hope I am able to answer your querry!!!!

Regards

MBS

[Lakshmipathi]

Dear Praveen

Sometime back, I have given a suggestion on similar issue. Check this thread whether it will be helpful to you.

[ow to block & sell materials that has ROH material type |]

thanks

G. Lakshmipathi

[Former Member]

Dear Praveen,

A Thought

The purpose of maintaining RG1 is to update stock details (for Finished Goods).

And, As per Central Excise law, you are not suppose to sell the raw material from a manufacturing unit.

So, either change Material-Type for Raw-Material to "HALB - Semi finished goods" or rename "ROH - Raw Material" with Suffix A and extended "Sales view" in Material Master (T. Code: OMS2 - to extend view for Material Type - ROH). Also, you need to maintain the renamed code in J1ID with numeric value "1" under the Tab: "Declared".

Other Settings must be like "STO - Plant to Plant"

Best Regards,

Amit

Note: You have edited your query (slightly), while i was replying.

Edited by: Amit Yadav on Dec 31, 2008 8:06 PM