on 06-09-2011 7:41 AM
I was suggested to post this issue in MM Forum.
Dear All,
We have one issue regarding the Finish Stock transfer from Excisable Plant A to Non Excisable Plant B.
Standard Costing is implemented.
Material X is maintain on Standard Price S.
Example
Material X cost in Plant A = 100
Material X cost in Plant B = 150
Material X production is done in both the plant.
When we transfer the material from Plant A to Plant B we have to add the excise duty to material cost when we received in Plant B as Plant B is non excisable so all cost should be added to material cost.
Plant A Material X cost = 100
Add: Excise Duty = 10 Rs
Total Cost will be 110 Rs
So system is debiting the Material in Plant B for Rs 150 instead of 110Rs. and balance transfer to Price difference. This is because of Standard price indictor maintain in Material Master.
Client is not accepting that .
Is there any solution for that .
Regards,
Shayam
This problem occurs when you are having standard price in both the plants.
In such case, difference will go to price different account. If you are not taking cost run in receiving plant, then you can maintain Moving average price in that plant. Also, I hope you have maintained excise amount in your STO pricing.
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You have a non-excisable Manufacturing Plant? what is it? and SEZ or EOU? I dont think any SAP OSS will help you.
Normally, if you are Treating the same Material in One plant in 2 different ways (i.e. Manufacturing and Transferred/bought from Outside) then you go for Split Valuation, and accordingly you can maintain the Valuation /Pric econtrol as Standard for MFG valuation type and as Moving average for TRD(traded/transferreed) Valuation type.
Thanks for a Reply Ravi,
This plant is in the state which is excise exempted.
I am very much agree with you for split valuation.
Suppose if we implement Split valuation then the problem is that in case of Trading Valuation price is rs 100 and in case of Manufacturing valuation price is Rs 150(Which come from costing). then at the time of sale which price system will pick in condition VPRS. As the storage location is same for both.
At the time of costing costing Run at month end which price system will update.
Hope you understand my question.
Regards,
Shayam
Edited by: Shayam_210 on Jun 9, 2011 1:03 PM
At time of sale , the COGS will be hit with the respective Valuation type price (while isuing the material, you will have to enter Valuation type) . I think VPRS will show the Price at the Valuation category level (Not sure though-you will have to do a cycle in system and check ) .
In costing, you will not cost the material which has valuation type price control as moving average price (traded goods) .
Costing will happen only for the Im house manufactured valuation type record which is at Price control -Standard.
have you thought of the option of having a trading plant ( dummy) and stk transfer of the finished material to the trading plant? As far as i know there are some excise related restricitions in stock transfer of finished goods to a manufacturing plant. eventhough your receiving plant may not be subjected to excise now, when the tax holidays are over it can create a problem.
Thanks Ajit ,
The ideal is good but client will not going to accept that thing at all and we have to do a lot of customization for that. as we have 3 plant in that state and 5 depot. so i think i have to create that much dummy plant for that.
one thing i want to ask how as how it will be a problem when tax holiday will get over in my scenario.
Regards,
Shayam
Edited by: Shayam_210 on Jun 10, 2011 2:26 PM
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