Scarped into Customer Location

[prasanna_kumar4]

HI Every One,

I have business case like this

Customer is ordered 1000 bottles , we done the delivery , billing and excise invoice

but some bottles are broken in the transportation , for example 100. the Mgmt said that scarp in the customer location and raise the credit note

My question is how to handle the inventory and how to handle the excise duties

Regards,

Prasanna

[Lakshmipathi]

The process you have to follow are

a) Create an Order Reason as required by you

b) Create a return order and assign this order reason

c) Maintain the quantity what was damaged in transit

d) Raise a credit note in reference to this return order

e) Adjust CENVAT entries via J1IH

G. Lakshmipathi

[prasanna_kumar4]

Thanks for Reply Mr.Lakshmipathi & Mr.Prakash,

I have a doubt ,

if the goods are not comes under our plant , how we can adjust the Registers

Regards,

Prasanna

[Lakshmipathi]

I am sure, for those rejected goods, your client will take CENVAT credit. If the client is taking credit for those rejected items, then they should do the above exercise whatever I had suggested above. This exercise is also to prove to excise authorities that you have taken back those rejected goods back to parent plant and scrapped, though physically, the client has not taken back.

G. Lakshmipathi

[prasanna_kumar4]

Thanks for Reply Lakshmipathi,

1.What the difference between with Qty return and without Qty return

2.What is the impact in excise point of view like Registers ?

Can you please explain briefly so i can understand because my concern is about the Excise Registers Quantity and Value updation ?

Regards,

Prasanna

[Lakshmipathi]

I have a feeling that you have not understood my explanation clearly.

1.What the difference between with Qty return and without Qty return

It differs only in physical activity. In SAP, whether the client is taking the goods or not, according to excise authorities, it is immaterial. They will audit only if you avail the credit to the extent of duty paid already.

2.What is the impact in excise point of view like Registers ?

The impact is if you do J1IH, one off-set entry will get posted; that is for one debit entry, once you do J1IH, credit entry will get updated

Needless to mention, please brainstorm with the key users who should be more professional from business point of view and in fact, they are the deciding authorities as to how their requirement should be captured in SAP.

G. Lakshmipathi

[jpfriends079]

For this scenario, you need to create

return order - PGR(M Type 671) - Credit Memo - J1IH

Regards

JP

[prasanna_kumar4]

Thanks for reply Mr. Prakash,

if we are raising the return order means we are receiving the material from customer and keep it the storage location (unrestricted or quality )

My case we are not receiving any material from customer location , and also no goods movement happened

Regards,

Prasanna