intra plant stock transfer without excise duties

[Former Member]

Hi,

we have 5 plants, raw finish is made at one plant and then transfer to another plant for the further processing,after processing same compnent is sent back to original plant.

those materials were non excisable, i have to map  such stock transfer process into the system.

pl. suggest best way.

Regards,

Devendra

[Former Member]

You can transfer the material from one plant to another and reverse the same after processing.

But let me how you want the processing charges to be handled whether there is costing run down for that plant.or you need to worry about processing charges as it falls into same entity.

[Former Member]

hi,

we have the same materials use for the stock transfer,

our officers were doing 501 movement to transfer the stock to receiving  plant,then this plant issue material with 901 movement type, Due to such transactions account entry gets knock off,

But i am worry about movement types used, It seems there is definitely the optionsto handle such scenario.pl. suggest.

Regards,

Devendra

[former_member183424]

501 movement type is used for Goods receipt without purchase order.

901 movement type a customized movement type....

301 movement type is for Plant to plant transfer..

You can explain details about your business process..

Suppose you have made Material A in your plant 1, then you want to transfer the material to plant 2.

You can use movement type 301.

After processing, is the material still remain as Material A??

If you want to use Material A as component and receive material B in plant 1.

Then you can use component for material A as plant 2 as PO component and receive material B in plant 1.

[Prasoon]

Hi,

   If the materials are non excisable, there wont be any J1ID details for the materials.

   You may go for MB1B - 301 movement for direct transfer posting between the plants, if they are in same area and no need to transfer through public roads. Once its processed, do 301 again from 2nd plant to first plant.

    If you want to transfer through public roads, then create STO from plant to plant with 641 movement. Do the same to return the goods after processing.

Regards,

AKPT

[Former Member]

hi,

we are processing the same materials at the receiving and issue plants,

using the same movement type 301, it is possible to clearing the account entries for the same company code level?

Regards,

Devendra

[former_member183424]

For 301 movement type, the accounting entry will be :

Inventory A/c for material 1 debit

Inventory A/c for material 1 credit.

And it happens for same amount, just posting key will different...

and what do you mean by "clearing the account entries"

[Prasoon]

Hi,

   For transferring the materials to the other plant, you may use 301 movement. Accounting entry will like BSX and BSX

   The stock account in receiving plant will be debited and the same in receiving plant will be credited. No need to clear any accounting entries.

   While transferring from plant  2 to plant 1, the same entries may come. You may use 301 movement and again transfer post from plant 2 to plant 1 or cancel the already created 301 movement.

Regards,

AKPT    

[Former Member]

Hi,

I assuming that transfer the materials from issuing plant through 301 movement,

after processing the materials,same materials were issue from the receiving plant with 302 movement,

so that the account entries will be nullify,

whether is it possible to nullify this way or i have to follow other options?

pl. suggest.

Devendra

[former_member183424]

As you have said you will do some process in second plant for material...

Then how the material still remain same?

Anyway, if you do 301 movement type you can see the accounting entry Inventory debit and inventory credit.

It will be same when you will do movement type 302..

If you are using standard price for material, then the accounting entry will same and will be nullified.

[Former Member]

Hi,

Pl. suggest Best business practice to my scenario,

Regards,

Devendra

[Former Member]

Hi,

pl. update on best industry pracice on business scenario,

Regards,

Devendra

[former_member183424]

First you have to share your business scenario...

Give us all details for you material movement and procurement...

Give details with example..

What is the procurement for material in 1st plant.

What will be procurement in 2nd plant?

[Prasoon]

Hi,

   The best practice depends on your physical location of the plants.

   If both the plants are in same location and you do not want to transfer the stock through public roads, then you can go for direct 301 movement or two step procedure - (303 and 305). For returning, you may use 301 movement or 302.

   If your plants are in different location and you have to transfer the goods through public roads, then you have to for STO. You may use STO with delivery - 641 movement. For return, you may create return STO.

Regards,

AKPT

[Former Member]

Hi,

our plants were located nearby,but not in one area of single plant,

Regards,

Devendra

[Prasoon]

Hi,

   Do you transport the materials through public roads? Do you require any documents for transferring as legal requirement? If yes in both cases, then you may go for STO.  If NO, go for 301 movement.

Hope its clear.

Regards,

AKPT

[Former Member]

Hi,

We are transferring the materials through public roads within the 1-3 KM,

Pl. suggest,

Devendra

[Prasoon]

Hi,

  Please check with the client whether there is any legal requirement of any documents (legal req) while transferring. Also check whether they want to track the shipping from delivering plant. If yes, go for STO.

  Else, go for two step procedure (303 & 305)

Regards,

AKPT

[Former Member]

Hi,

thanks for the valuable inputs,

Regards,

Devendra