For STO with billing how to take material in plant stock without cancelling excise duty

[amit_5566]

Hi,

Please suggest for STO with billing how to take material back in plant stock without cancelling excise duty.

Scenario is

Material transffered from manufacturing plant to depot,material is in transit now, but due to some reason material calls back to manufacturing plant.

Since the excise invoice is raised and material move out of factory client can not cancel excise invoice from legal point of view & client has to pay excise duty for the material movement.

Please suggest how to take back goods to manufacturing plant without cancelling excise invoice.

We have suggested client as there is no provision to take back goods to manufacturing plant without cancelling excise invoice

and to take back material to manufacturing plant stock they have to cancel excise invoice and other related documents.

But client is asking for another options.So requesting you to please suggest any alternative ways for same.

Thanks,

Amit

[former_member192897]

Please answer the below queries.

1) Have you tried reversing the PGI through VL09?

2) Did you receive any error Message that Excise invoice is not canceled?

3) Have you implemented any custom validation to restrict PGI Reversal if Excise invoice is not canceled.

The workaround would be recieving the stock in Receving plant (depot) with No exicse entry and create a Return STO from Depot to Manufacturing Plant with No Excise in Receiving Plant (Manufacturing)

[Lakshmipathi]

client can not cancel excise invoice from legal point of view & client has to pay excise duty for the material movement

I don't think, there is a statutory rule which says, manufacturer should not cancel the excise invoice generated on their Depot plant.  Justification can very well be given to Excise authorities and hence, ask your client to follow the normal process by treating this as Depot returns.

G. Lakshmipathi

[former_member182379]

Hi,

  It will be better if you cancel the excise invoice and reverse the other transaction also,

but as you have mention that due to some reason you cannot cancel the excise invoice, so one option is first you finish the complete cycle receiving the material in depot, and then again do the STO from Deport to manufacturing for same material with the same  excise duties or do the return delivery from Depot to manufacturing plant.

Regards,

Zafar