Material both excise and non excise

[Former Member]

Hi all,

Could there be a possibility that same material can be used for both excise and non excise depending on Product group?

I have a material X and if I use it to make Product A, I get tax exempt as per some rule.

And, if make Product B with same material X, then it is exciseable

Did anyone came through these kind of scenario?

regards,

Lakhya

[prasanna_kumar4]

Hi

As per my understanding,If  raw material is excisable then the FG material is excisable other wise it is non excisable.if that is the case you better to create 2 FG Material codes ( one is for Excisable and other one is non Excisable).

[former_member192897]

You must create two material codes as per your requirement. There is no workaround solution.

[Former Member]

Hi,

You maintain your raw material X in J1ID as required. &

In pricing procedure, You can add a % condition type for assessable value over which excise duties will get calculated. For A maintain assessable value as zero % and for B as 100% of PR00. Excise duties will get calculated accordingly.

[Former Member]

Thanks for all your replies. My concern is I have 1 have a single material and store it. Say my stock now is 100 kg. I issue 50 kg to make Product A (non exciseable), and when I issue 50 kg to make Product B, it is exciseable.

I think for this we need to put a control at PO itself, rather than controlling while issuing it. Bcoz our excise will hit at time of GR itself depending on PO tax code.

And, I too believe this can be handles using two material code.

Correct me if I am wrong..Is there any possibility of having only one material code?

[Former Member]

Hi,

You can have one material code, take excise set off for the qty used in product A.

[Former Member]

Hi,

I agree with Lakhya Pratima to create a two separate material FG code (Non- Exciseable & Exciseable). Both you can assign J1ID and there is no probelm for controlling and excise. if it is non-exciable, but inventory should come our store and might be sold to customer. If you are using one material code, there will be a probelm on invetory valuation/RG1 etc....

Regards,

RS

[former_member192897]

You are absolutely correct. Standard SAP recommends that you create two material codes when the material is procured as cenvatable and non cenvatable item.

[Former Member]

Hi,

No need to create duplicate material. This is common business scenario. On material can be procured from many vendors, some vendors may not be excisable. So just create one material, procure it as excisable or non excisable, do excise postings if required and then use it. I dont see any issue in this.

[Former Member]

Thanks All,

Nilesh, it is a single material that is exciseable when I use to manufacture one product for manufacturing other Product it is not exciseable. If I raise a PO and keep material in stock, I do not know if it will be used to manufacture the Exciseable/Non Exciseable product. And, during GR, if I book this as Exciseable and if I use it to manufacture the product that is non exciseable what will be the consequence?

[former_member192897]

A material can be used in the manufacturing of Excisable product and also in Non excisable product.

Let us assume you have material xyz and it is being used in manufacturing of a excisable and non excisable material.

You may try like below. Activate the split valuation. Create Valuation type like RM-DOM-UT (Excisable) and RM-DOM-NUT (Non excisable) When you procure the item put the valuation type as you required.

You need to write a routine and assign it in your tax procedure against condition types which will set the JMOP or JMIP to zero while MIGO and MIRO transactions based on your valuation types used in GR.

You may try it in development server and check the results.

[Former Member]

boss any hint for the routine???

[Former Member]

Ashok any idea about this?

J1IH > Excise JV > Create > Matl non-prod.

[former_member192897]

You need to write a code in the Routine like If valuation type = RM-DOM-UT then JMIP=0 else JMOP=0 like that for MIGO and MIRO transaction codes.

[former_member192897]

This option may be used when the material is used for non production. You may check one entry in dev server or in sandbox and check the results.

[Former Member]

Absolutely no consequences. Say your raw material is RW1 and mnfg one are SEMI1 (excisable) and SEMI2 (non excisale). When you procure your RW1 as excisable RG23PArt 1 and 2 will be updated as usual. Then you are using some quantity for SEMI1, update Rg23part1 for this. When you issue this RW1  for SEMI2, you dont need to update Rg23part 1. Where is the question of GR. Logic is simple, if in GR excise tab appears for non excisable transactions/materials, just change it to no excise in MIGO.

[Former Member]

rg23 updated during GI-- not clear boss.... sorry may be I did not understood....

[Former Member]

rather than asking basic questions, have you ever tried issuing excisable material to production. Internally, material quantity will be reduced and Rg23A Part 1 will be updated. Try this in system, half of your questions will be answered by yourself.

[Former Member]

I am sorry Nilesh if it is basic question. You are bang on point now, I do not want RG23APart1 to be updated during GI, if I am doing my GI for the product which is not exciseable..

[former_member192897]

You can put a code in the routine like below.

If transaction code = ME21N, Me22N, ME23N, MIGO, MIRO

If MSEG-BWTAR or RSEG-BWTAR=RM-DOM-UT then set the conditions JMIP, JEC2, JSEI to 0.

If MSEG-BWTAR or RSEG-BWTAR=RM-DOM-NUT then set the conditions JMOP, JEC1, JSEP to 0.

Also check whenever PO tax code is V0 (Or a zero tax code) set the above conditions to 0.

What is the transaction code you are using to perform goods issue against Production?

[Former Member]

Its not mandatory to update GI entery for all transactions. Just dont select entry in J1I5 which you dont want to be posted in Part 1 register.

[Former Member]

Thanks Ashok. Now there is no process for GI. It is just someone asked me this scenario and I am trying to figure out what happens in SAP....

[former_member192897]

There should not be any issue for Part1 register unless it is very specific and your client insists for part 1 register.

If you dont want to update the part 1 entry then while goods issue in MIGO you can choose "No Excise entry" in Excise tab and proceed.