Stock transfer between the two manufacturing plants

[Former Member]

Dear Experts,

   I am doing the stock transfer between the 2 excisable plants

  1.First we will transfer the Semi finished material from one manufacturing plant to another manufacturing plants.

  2.After receiving the material in the receiving plant, they will convert SFG to FG.

  3.FG material will transfer to another non excisable plant.

Is we need to pay the excise 2 times (1st time as a SFG material, 2nd time as a FG material)

What is the exact procedure for this scenario.

Regards,

Narendra

[former_member182489]

ideally - First times its need to update RG23A  Raw material and second  it need to update sales register of RG.

regards

manu

[phanikumar_v3]

Respected Lakshmipathiji,

i was little confused here...

"""Coming to your query, you need to levy tax on the selling price / assessabale value when sending the FG to non-excisable plant""""

Tax means are you talking about sales tax?

when we transfer the Finished goods from manufacturing plant to Non-manufacturing plant---Will it attracts Sales tax?

Please throw some light here sir..

Note to Narendra: this will be completely depends on your client--currently at my client they will transfer semi finished/Finished goods from one plant to another as sales cycle(attracts only excise values)--once after receival of stock--the receiving plant will raise PO to supply plant followed by MIGO and MIRO--there by the same excise values will be settled in MIRO settings(user will enter excise values manually in MIGO/MIRO to match the origin of stock transfer sales invoice)( i was not completely aware why they do so--may be need to get more clarity from my MM counterpart)

Phanikumar

[Lakshmipathi]

Ideally you should have raised this query to your client who have to confirm how they want to map their business process.  Accordingly, you can configure in SAP. 

Coming to your query, you need to levy tax on the selling price / assessabale value when sending the FG to non-excisable plant.

G. Lakshmipathi

[Former Member]

Hi Narendra,

Yes if you move it as stock transfer and plants are registered under separate excise registration you need to pay excise and you need to take input in both plants. if you want to avoid this situation you can go for sub-contracting challan process.

-

Krishna

[former_member192897]

You receive it as a Raw material in Receiving Plant and update RG23C / A as per your requirement. In J1ID maintain the Raw Materials under Material & Chapeter id combination for the receiving plant.