stock value for stock transfer from depot (RG23D) to manufacturing (RG23A)

[Former Member]

Dear all,

The forum posts that I found are all relating to the process of how to do stock transfer from depot plant to manufacturing plant.

The question I want to post is relating to the transferred stock value.

When stock first goes into depot plant (RG23D), the excise duties (CVD, Education Cess, Higher Education Cess, Secondary Education Cess) are all inventorized. However, in manufacturing plant (RG23A), they are CENVATABLE and not inventorized.

In the transfer of stock from depot to manufacturing, how can we split out the stock value from depot and take out the excise duties to CENVAT in manufacturing plant?

If using Stock Transfer process (move stock from depot to manufacturing),

1. Create Stock Transfer Order in ME21N using UD order type

        no accounting

2. Create DO in VL10B and goods issue

During goods issue, moving average of stock in depot plant, will increase stock with the same value in manufacturing plant and reduce the stock value in depot plant. How can we reduce the stock value transferred to manufacturing plant by the original excise duties amount, and pass this amount into J1IEX? Is it done in this step or later steps?

   Dr Stock into manufacturing plant  [this value by right, should be reduced as it consists of original excise duties in RG23D?]

        Cr Stock from depot plant

3. J1IJ- RG23D selection for excise invoice for delivery at depot

    no accounting

4. VF01 for proforma invoice

   no accounting

5. MIGO into manufacturing plant (capture excise invoice)- part 1 register. the excise duties can be manually keyed in based on the original RG23D entries when stock is first brought into originating depot plant

     no accounting

6. Enter Incoming Excise Invoice by J1IEX

     Dr CENVAT Input AED

     Dr CENVAT Input BED

     Dr RG23A ECess

     Dr RG23A SHECess

           Cr CENVAT clearing

7. Question: Where to Debit CENVAT clearing? In normal domestic purchase process of raw materials into manufacturing plant, Dr CENVAT clearing will be posted during MIRO time.

If this process is not the correct way to do, please advise the standard SAP recommended way to transfer from depot to manufacturing plant. 

Thank you in advance.

[former_member192897 · Accepted solution]

I dont think there is any provision to Clear the Cenvat GL in the said case in the receiving plant.

Yes, you can manually transfer the Cenvat Clearing balance to the Expense / Consumption GL account at the end of the every month or whenever you need it.

[Former Member · Accepted solution]

During the transfer to manufacturing plant, how do you reduce the stock value (after taking out the excise amount from the depot plant)?

[former_member192897 · Accepted solution]

Why do you want to reduce the duties? Had you inventorized the duties at depot during receipt?

[Former Member · Accepted solution]

Yes, for depot, duties are inventorized. But for manufacturing plant, duties are supposed to be CENVAT and not inventorized. So when we transfer stock from depot to manufacturing, we must reduce the stock value by the duties amount.

Question is how to do this? Thanks in advance for your help.

[former_member192897 · Accepted solution]

You have to add the Excise duty condition types as a Delivery cost Pricing condition types in STO Pricing procedure and have used them in STO. In Pricing procedure, there is no concept of Deductible and Non Deductible. So, what ever the Delivery cost condition you add in Pricing procedure, the amount gets loaded on to the Material cost..To avoid this, a negative condition type needs to be inserted in Pricing procedure with a different accrual key.

You have to add One Positive condition and One Negative Condition type for the same. Negative condition type is to reduce the condition value from the Material cost during GI.

Try this scenario in development server and revert back with your observations.

[Former Member · Accepted solution]

Hi, we tried but even if we allow negative in the condition type config which is set to be for Delivery cost, does not allow user to enter negative value in the STO in ME21N. There will be an error message saying that it needs to be positive. I guess it cannot recognize stock to be negative. So this option is not possible. Any other ideas? Thanks.

[former_member192897 · Accepted solution]

The Condition category should be blank for the Negative Condition type. Remove Condition category "B" Delivery costs and check once again.

[Former Member · Accepted solution]

Yes it works. In fact, the other account that should be posted when I reduce the stock, is it will Debit the CENVAT clearing account, which answers my other question.

Thank you for your help.

[ajitkumar]

Why not clear it manually to consumption account ?

since you are availing cenvat, your material cost is coming down by that much.