Customer Returns for Excisable Finished materials RG1 registers update

[Former Member]

Dear Experts,

Ours is an Excisable Plant.

The Normal Sales to Invoice process runs fine.

When it comes to Customer Returns, kindly help me in understanding the process in receiving the Excise material.

Right now, i'm doing the following,

1. Create Return Sales Order w.r.t Orginal Sales Order (VA01)

2. Create Return Del w.r.t Return SOrd. (651 Mvt Type, returns stock)

3. Create Invoice w.r.t Delivery (VF01)

In the Excise Invoice area, i would like to know the following

1) Which transaction should i execute and what are the sequence of steps in that transaction.

Though i tried different transactions like J1IEX & J1IH, both the transactions are updating RG23A registers. Is it correct.

2) Our Business Process Owners say that when we receive the Finished Materials back again from the customer as a return,it should update the RG1 register. Is that a valid statement. If not , is there any official document/ link we can refer to ?

Kindly reply.

fyi. the returns qty is a partial quantity due to some defect.

Ex:if the main sale qty is 100 , the return qty may be just 10. (just to confirm that we cannot go through the cancellation of main process)

Thanks in advance.

[Lakshmipathi · Accepted solution]

a) On point no.1, you should always create a return sale order with reference to billing document only and not original sale order which is totally wrong

b) Right

c) Right. You may also generate credit memo with reference to return order

For updation of excise related sales returns, run T.Code J1IH and do the following:-

Customer Credit

Choose the Additional excise input the original excise invoice reference, document year, company code, plant and excise group and execute. There input manually what value you need to give credit and save.

Cenvat Debit

Choose Other Adjustment and here also, maintain the datas whatever you input as above and save.

RG1 register will get updated only for outgoing materials and only RG23A and RG23C will get updated for incoming materials.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Dear Lakshmipathi & Krishna,

Thanks for your inputs.

One question i still have is, to my knowledge, RG1 register is meant for Finished Products & RG23A is for Raw Materials.

According to your inputs,you are suggesting to update the RG23A registers which is meant for Raw Materials,

but, when we intake the Finished Products as a return from customer, shouldn't it update the RG1 register ?

Kindly clarify.

It would be more helpful if you can suggest me some official documents or a link for reference so that it helps me understand better as well as suggest my FI people with reference to the document.

Thanks again.

[Former Member · Accepted solution]

Hi,

RG1 register is only related to Quantity updation when excisable good is moved out or into ur manufacturing location. RG23A register is related to Excise Value updation for stock movements. It is nothing like for FG material it is RG1 and for others it is RG23A.

Further, RG23A register is more excise value updation for all material types except capital goods. For Capital goods, RG23C register is updated.

Regarding the RG1 register update in case of return stock, please confirm with the business heads whether stock is directly coming to Excis godown for resale or the stocks are taken at quality inspection and then moved on to excise godown. When the stock is moved to Excise godown, RG1 register to be updated.

Regards,

Praveen.

[Former Member · Accepted solution]

Dear Praveen,

Thanks for your input.

Firstly, as per the business req on the returns goods, the finished goods will be taken to Quality Inspection and then to own stock.

In SAP , we are planning to get the stock from customer to Returns Stock (651 Mvt Type) through PGR in Delivery and then after QI is done, move the stock to own/unrestricted stock (453 Mvt Type) through transfer posting.

Based on the defect of the material, it can be reprocessed again and sent back to the customer or can be scrapped if it's totally defective.

That is the scenario.

Now, as per your message below," When the stock is moved to Excise godown, RG1 register to be updated."

which is my case as mentioned above, How/What transactions should i execute and what are the corresponding steps in those transactions to update the RG1 register.

Kindly reply.

Thanks

[Former Member]

Dear Princehartin,

have you found any solution regarding above issue( Customer Returns for Excisable Finished materials RG1 registers update) if so could you please highlight your valuable suggestions.

As my client wants the same issue to be resolved ....but in this case he just wants to use 173 H register for finish goods returns and after rework, he wants to sell same material through 173 H register only...if you have any idea please let me know..... would be a great help...

Thank you ....

hv a good one....

[Former Member]

First, discuss & finalize what all the movement types to be considered .

Then , make a list & include all those movement types in the CIN Configuration settings.

Rgds

Sumanth.G

[Former Member]

MOVEMENT TYPE 453 IS USED IN YOUR CASE.

SO ADD MOVEMENT TYPE 453 IN CIN SETTINGS UNDER BUSINESS TRANSACTIONS-INCOMING EXCISE-SPECIFY WHICH MOVEMENT TYPES INVOLVES REGISTERS.

INCLUDE 453-RG1 REGISTER AND SAVE.

THEN UPDATE,EXTRACT RG1

[Former Member]

MOVEMENT TYPE 453 IS USED IN YOUR CASE.

SO ADD MOVEMENT TYPE 453 IN CIN SETTINGS UNDER BUSINESS TRANSACTIONS-INCOMING EXCISE-SPECIFY WHICH MOVEMENT TYPES INVOLVES REGISTERS.

INCLUDE 453-RG1 REGISTER AND SAVE.

THEN UPDATE,EXTRACT RG1

[Former Member]

Dear Experts,

Ours is an Excisable Plant .

I am a scenario where I will reuse the some of bom parts of that FG return back from customer.

kindly help me in understanding the process in receiving the Excise FG material back and we can reuse some of the parts ,part of bom of that FG material .

Right now, i'm doing the following,

1. Create Return Sales Order w.r.t Orginal Sales Order (VA01)

2. Create Return Del w.r.t Return SOrd. (651 Mvt Type, returns stock)

3. Create Invoice w.r.t Delivery (VF01)

4. Modvat availed thru J1IH

Now I am not clear how to scrap the FG and generate the stock of parts which we can reused whether thru production order or any other standard method.

Kindly reply.

Thanks in advance.

[Former Member]

Hi,

Please check the below link.

Regards

Pradyumna

[Former Member]

Hi Prince ,

As rightly mentioned above the return order should be created with reff to the original invoice.

And In case of return from excise point of view you need to use T- COde J1IH in which you will the cenvat suspense account will be Cr. and ither excise duty payable will be Dr.

For returns we use form 5 which will have the details of the returns goods.

Hope this will help you.

Regards,

Krishna O