Query regarding Job work senario in India

[Former Member]

dear all,

i am facing a strange problem

i m having some Customer who sent material on (4)(5) a or 57F4 challan for job work. In that case only labour charges are charged no excise duty will charged, but how i will take the material "in" in to system,from which transaction code and which movement type i used. Also the storage location should be different for that ?

It Dose not hit the RG1 Register.

can any body help me to solve this

please please solve the problem

regards

pankaj

panmahajan@gmail.com

[jiteshmehta · Accepted solution]

As you are sending out material for jobwork(which is services only ), you should make the material either as non-valuated(UNBW) or as service items.

you can make a sales order and deliver it to job worker

Then you recieve the material from Customer, which is non-valuated.

This you can do in MIGO.

Then you make a production order with BOM, where component will

be material given by customer and FG will be Material you are going

to send along with byproducts.

For this material you make sales order and do the delivery and

billing as normal sales cycle(it will be like sale of services).

Regarding your queries.

1. Also the storage location should be different for that ? yes you should keep seperate storage location for jobwork

2. It Dose not hit the RG1 Register. : you can clarify with your excise person. I think it hits RG1 Register.

3. In transaction J1IF- you can prepare the jobwork challan. i.e. 57F4.

If you have doubts , please inform

and do not forget reward points, if you find it useful

Regards

Jitesh

[Former Member · Accepted solution]

Dear Jitesh,

Thx for ur reply.

But in my condition, Customer send raw material to us on subcontracting challan.

then we make operation as per customer drawing and send back to customer on same challan. So Excise duty is not charged ,only labour charges are charged.

ok plz help me in that case.

Thx & Regards,

Pankaj

[jiteshmehta · Accepted solution]

Dear Pankaj

1. Then i will suggest to use DIEN Material type , which will not be valuated, as

it is customer's stock

2. Then you recieve the material from Customer, which is non-valuated.

This you can do in MIGO.

3 Then you make a production order with BOM, where component will

be material given by customer and FG will be Material you are going

to send along with byproducts.

3. Once material is process(or produced) then you can make a seperate jobwork sales order type and deliver it

4. Finally bill it for services rendered.

If you use Services you will not get stock of customer's material in the system.

But if you use non valuated material you can get the stock. So ask if stock

is required???

As no excise entries are required you need no worry about CIN part

I hope it is clear....

Regards

Jitesh

[Former Member · Accepted solution]

Dear Jitesh,

Thx for ur nice explanation.

But when i receive material from customer through MIGO , which movement type i used 101 or 501 for stock receieve.

Also shall i prepare a P.O. for that ? Vendor will same as customer?

Plz explain me.

Thx & Regards,

Pankaj

[Former Member · Accepted solution]

HI GuRu,

Any one can help me regarding Job Work Senario In India.

Thx & regards,

Pankaj