Issue regarding 1st stage delear procurement during MIRO

[Former Member]

Dear All,

I am procuring material from 1st stage delear. But scenario is like this

1. During PO i have information only material net price(not included excise duty) and VAT percentage

e.g Material net price is 100/- per pc and VAT percentage is 5%

A) For this i have created a TAX code with VAT condition only and given material net price as 100/- and saved

2. During GRN, my delear pass excise duties as per his invoice.

e.g BED 10/- Ecess 0.02 and Hecess 0.01/-

B) So what i did i keep my base price is as 100/- and manually entered all duties w.r.t the fields without checking MRP indicator(because excise duties are not added in my PO net Price). Then 100/- base price is added in my material which is correct and i posted J1IEX. Upto this i am clear.

Problem Starts Here.

3. During MIRO which tax code i will select, because the percentage of excise duty is not same. Delear just pass the amount which percentage is varies for each material(as per their Accessable vaule)

Please Guide me How to MAP this scenario is SAP.

Regards

PR

[Former Member]

Hi,

Pls READ through the note 1104456 and its attachments and follow as suggested for dealer's process.

Regards,

Rajasree R

[former_member192897]

Maintain the condition records for all the required condition types in FV11. JMX1, JEX1, JHX1 100% and for JMOP, JEC1, JSEP 0% and choose that tax code in PO. Now perform the same cycle in Dev or Qas server and let us know your findings.

In general, for Trader procurement scenario PO value will be Inclusive of Excise duty and you change the Excise Base value and duties during MIGO/J1IEX as per the Vendor invoice and tick MRP indicator in Excise header and while MIRO you must to change the amount manually and Post Invoice document.

Please Search the forum with search term trader / dealer purchase and you get the desired results.

[Former Member]

Hi Ashok,

Thanx for replying. I am aware the general process of dealer procurement.

But here the scenario is different like during PO i have only information of material net price (excluding duties)

If i am purchasing 5 materials from one dealer  then in their invoice 5 different excise amount they are passing. When i calculate those excise amount i am getting different rate. So shall i use 5 different tax code for 5 materials? If yes then is this the standard practice that industry follow?

If no then how to map this scenario?

[former_member192897]

You said One dealer is supplying five different material with different prices.

In that case, you can maintain Exceptional Excise rate for five different material, vendor and chapter id combinations in J1ID and that will be picked in PO accordingly.

In Standard system picks the excise rate as per below.

Is you vendor an SSI? If yes, system checks for the SSI rates maintained first.

If NO

Has exceptional rate maintained in J1ID? If yes, it picks from exceptional rates.

If NO.

System searches for the condition records maintained or Read from Excise tax rates (in case of taxinj procedure)

Check once the above procedure in Dev / Qas and see how it works.

Alternatively, you can even maintain five different tax codes and make use of them in PO as per your requirement.

[Former Member]

How i will get to know on which rate they will pass to us?

Here i mean to say that during PO creation i have no idea about excise duty. I have only information about material net price and VAT percentage.But when i receive the invoice, they pass all excise duties(in value) to us. There is no such constant rate is maintained in that invoice.

e.g

Material  Quantity(in Ton)    Amount of excise duty per unit    total excise duty

A                       1.751                   4662.72                                     8164.42

B                        1.755                   4722.72                                     8288.37

C                        1.695                    4812.72                                     8157.56   

[former_member192897]

In that case, Create Purchase order with the tax code (Maintain condition records for all the required condition types say 8%, 2% , 1% tentatively) and use it in Purchase order.

When you receive the goods your base value will be same as your PO price but, excise values gets changed as you said. So,change the Excise values during MIGO and post the excise invoice.

Now perform MIRO with the same tax code and check how it behaves.

You said its a Dealer purchase. To my knowledge, in dealer purchases PO values will be either inclusive of Excise values or there would be exceptional excise rate given by vendor. Your case seems to be different than dealer purchase.

Try all possible scenarios and even see whether any of the above options fits as your requirement.

[Former Member]

Dear Ashok,

As my PO price is excluding of excise. So what i did is during GRN, i just added all excise and its related cess in the relevant field without changing base price and without ticking MRP indicator.

Upto this it is ok, system is behaving properly. But when i am doing J1IEX to post excise invoice, I am getting some mismatching amount in TOTAL BED and AVAILABLE BED in Line item of some material.

When i am posting the excise invoice available BED amount is posting with less BED.

[former_member192897]

Please maintain all the condition records (JMX1, JEX1, JHX1, JMOP, JEC1, JSEP) with tentative rates (Say 10%, 2%, & 1%) and create a Purchase order.

Once you received the goods, change the duties in MIGO Excise tab as per Vendor invoice and (donot put MRP indicator as you are not changing the base value) post the Material document / Excise invoice and then perform MIRO.

Please note that MRP indicator must be check in cases where you modify the excise base value only.

Just test the above solution in Dev / Qas server and confirm the same.

[Former Member]

any update on this???