Imported material sold as it is - trading - excise - J1ID to maintain

[anil_shanbhag]

Hi ,

We have purchased materials via imports during which custom duties are paid . We need to take credit of the additional custom duties . The same material is then required to be sold in the domestic market without any production process , so it is actually a scenario of "trading of imported material " . But if I use the same material code for incoming excise invoice as well outgoing excise invoice , System does not allow me to maintain 2 records for the same material code in J1ID , one against RG23A & again against RG1.

Kindly advise how normally this situation is to be handled as per SAP best practices & Industry practice. Whether I need to create 2 different material codes , one as raw & other as finished material for the same material , & do a production order in between , in order to maintain the RG23A & RG1 details . 

if both incoming & outgoing excise can be done using only one material code ,then  can I take the material type as HAWA ( trading ) ?

Thanks & Regards,

Anil Shanbhag

[Former Member · Accepted solution]

If you are selling the same material number without any processing, this is sure shot trading in Indian excise rule of books. For this prefered material type should be HAWA and register to be updated should be RG23D.

System wont allow you to post same material in RG1 (for  receipts of HALB or FERT and issues for the sales etc)and RG 23A/C registers.This is legally not allowed as well.

Workaround is procure the material as ROH, process it via Prod order etc (PP flow) and receipt it as semifinished material (another material type and number). Post the entries in Rg23 registers for issue to PP. Update Rg1 for receipt and then Sell it.

Trading you can not as for trading materials, RG23D will come into picture is spite of Rg23A/C and Rg1.

[anil_shanbhag · Accepted solution]

Thanks Nilesh for prompt & perfect answer . we will adopt the ROH-prod process- Finished Goods Procedure , it seems to be  the only correct option.

Best regards,

Anil shanbhag