Excise related query

[Former Member]

Hi all

We are buying some traded products which we import and sell locally.

We are not getting cenvat credit for these products since we do not manufacture.

Hence the excise duty we are paying must add to the material cost.

Example

Basic value (PB00)  --             100

Excise (CVD)JCV1-----            10

Additional excise duty(JADC)--4

Customs duty(JCDB)               12

In normal scenario when i am buying raw materials accounting goes like this while goods receipt

Material cost : 100+12 = 112

Remaining goes to modvat clearing account ( not affected while GR)

In this scenario, I need like this

Material cost = 100 + 12 + 10 + 4 = 126

For this i created a new purchase organization and pointed it to a new pricing procedure.In pricing procedure, I assigned the accrual key as customs duty to add to inventory cost.

If you are still reading, below is the actual problem

How system is behaving:

1. Material not maintained in J1ID ( material cost becomes 112)

2. Material maintained as non-cenvatable in J1ID ( material cost becomes 126 which is what i require)

3. Material maintained in J1ID as cenvatable( material cost becomes 112)

We do not want to maintain the material in J1ID so we need option 1 to give 126 value. Why is the excise tab appearing in MIGO without material being maintained in J1ID??

Regards

Iyer Kartik

[ajitkumar · Accepted solution]

where did you maintain material as cenvattable or not in J1iD?

you can have another accrual condition in pricing schema for the non cenvattable cvd

normal cvd condtions are check marked for statistical so that the value willl not add up to the material. This new conditon should not be check marked for statistical. the accrual can be for custom clearing and not cvd. cost adding to material is controlled by the statisitcal checkmark

[Former Member · Accepted solution]

Hi Ajit

Thanks for responding.

I did not maintain the material at all in J1ID.

CVD condition is not marked as statistical in pricing procedure.

And accrual key is maintained as custom clearing.

Is there any other place where statistical checkmark is maintained??

Thanks

Iyer Kartik

[ajitkumar · Accepted solution]

No, statistical is maintained in pricing procedure. I would suggest you create a new Zconditon instead of using the standard conditon for cvd which need to be added to material cost. Std  cvd condtion is maintained in excise default values, which may be influencing the way it behaves.

[Former Member · Accepted solution]

Hi Ajit

If I add a new condition, how do I make system to determine that condition instead of the standard conditions??

[Former Member]

Hi,

Is this the only material where in this scenario is applicable r your organization have so many such materials. If this is one off case, better to use, noncenvatable conditions and maintain the material as noncenvatable in J1id.

This will ensure that all the duties are geting loaded and inventoried on material.