Issue during Vendor returns for Asset material.

[Former Member]

Dear All,

Scenario is like this.

Actually the material is a Raw material but during Project phase my customer is treating as a asset and Quantity and Value is updating in RG23C aprt I and Part II (maintaied as Asset in J1ID)

So problem is when i am doning return delivery against that material to same vendor with Mov 122 and Excise Indicator as IPD. Then instead of RG23C it is updating the duties in RG23A apert II.

I check the table J_1Ipart2 and found it is update as ETT- OTHR, Reg Type- A.

So my question is instead of maintaining that material as asset in J1ID why during return it is update in RG23A register.

Note:- In PO there is no account assignment but we treat as Asset for excise point of view.

Kindly explain in details of Assset return with excise.

Regards

Priyaranjan

[Former Member]

Dear Nilesh,

I know our process is not correct as per excise rule. Customer requirement was like this and this is only for Project phase. Once they will start normal production then Master data will be maintained systematically.

So here my question is Capital Goods return process is same as Raw material return process or different? If different then what is the standard process?

Regards

PR

[former_member192897]

The return process is same for Capital as well for Raw material. Only thing is while procuring capital goods, you must use an account assignment category "A" and maintain Asset in the account assignment data.

Run one complete cycle as mentioned above and let us know your findings / results.

[Former Member]

You are not following basic principle of excise.

Material is determined as Asset. Raw material, Tools etc Via Chapter ID - MAt combination maintained in J1ID, also you need to create a PO with account assignment A. Many things are hard coded in excise and it works properly if you follow correct process of data maintenance, creating correct PO, posting ocrrect GR etc.

[Former Member]

Hi Shiva,

I think for Vendor returns we use 122 or 161 instead of 102, because 102 is cancel material document. So if i cancel material document and excise invoice then i can not keep partial asset.

Example-1 receive 10 pcs laptop and found 5 pcs is defective. So in this case is it the same process that you proposed.

Example-2  In mt PO i have 6 line item but i found i like item is defective. So is it feasible to use 102 mov for return.

Please correct me if i am wrong.

[former_member182489]

A Material is determined as Asset. Raw material, Tools etc Via Chapter ID - MAt combination in J1ID ( t code)

If your Mat comes in as Asset - i.e RG23C is hit , the same will hit if you reverse it .

The point is , When you do the return Delivery , the sales sides registers are updated . So you need to maintain

• Specify Excise Account per Excise
  Transaction(STD – ETT to Transaction))
• Specify GL accounts per Excise
  Transaction(Excise Group–ETT- Co Code – COA- GL (CENVAT, RG23A , RG23C, RG23 D

Maintain Excise Account per Transaction type (Spro-LG-Tax on goods Movement-account determination

– Specify Excise Account per ET)

ref :SAP CIN MM_check point_Logic_Q&A | SCN

Return delivery process (121)

Excise Reversal for Return Delivery Process_ two-step Process

T code J1IS

Input Parameter

• Ø Mat Document Type: MATD
• Ø Material document number of Vendor Return
• Ø Document Year
• Ø Series Group
• Ø Excise Group
• Ø Vendor Code

• Ø Check account balances and Excise amount to post.
• Ø Save the document

T code J1IV

Tab Post Excise Invoice will automatically reach J1IV transaction screen. It is also allowed to manually go to the screen using Transaction code J1IV.

Input Parameter

• Ø J1IS Document number
• Ø Year

Check the Excise amount and post the Document.

Summary

This process will help to do the Excise Reversal for Vendor return process in standard SAP.

Sales side registers are updated when Excisable Vendor return process is done and the amount is reconciled once the Excise amounts are captured through standard Procurement process.

fyi- Return Delivery (122) / Vendor Returns (161)

regards

manu

[Former Member]

If so then what is the Return process for Capital Goods Procurement and what accounting entries will triggered during J1IV?

[Former Member]

Normally for Asset po's in GR no accounting Documents get generated if we use A account assignment since it non valuated  

1.Vendor Return cycle of Capital Goods: -Standard Process 102

MIGO - Cancel--->Material Doc

J1IEX - Post ----->Vendor Excise Invoice

J1IEX - Cancel---> Vendor Excise Invoice

After posting the excise invoice cancellation that contains capital goods, the system posts half of the excise duty to CENVAT Receivable account(Cr) and post the rest to a temporary offset A/c CENVAT on hold(Cr) and debit CENVAT Clearing Account.

2.Cancel Migo Document and use t code J1IS to raise an excise invoice for vendor for Excise duties amount. here Cenvat account get cleared

[Former Member]

In Table J_1Ipart1 table it is updating correctly with ETT---OTHR and Register type.

But in table J_1Part2 table same cancelled material document is updating as ETT----OTHR and Reg type- A

Please find attached screen shot

[Former Member]

you didn't answered my question..

[Former Member]

Hi,Shiva,

When i am doing return delivery that time i used Goods issue indicator as IPD and Material type as it is Asset.

But after creating Excise Invoice and posting through J1IS and J1IV again when i go to display my return delivery document no. then my material type is changed as Raw material and Goods Issue indicator is blank.

Really i am surprised why it is happening so?

Regards

PR

[Former Member]

Normally in case of Capital Goods you should use Account assignment category in PO since it is Asset we don't maintain stock please convey your client to use account assignment in po so further no issues will arise in capital procurement.

[Former Member]

Hi Shiva,

there also i have maintained both 122 and 161 for RG23C register

[Former Member]

in Excise item tab what it as taken in Indicator for Material type

[Former Member]

Please check in Tax on Goods Movements-->Business Transactions-->Incoming Excise Invoices-->Specify Which Movement Types Involve Excise Invoices

[Former Member]

What entries you can see in J1I7, if your material is defined as asset in J1ID. then it should hit capital accounts.