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Subcontracting with excise duty ??

Former Member
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Hi experts

Can anybody explain me , how subcontracting procees haes been done with excsie duty ?

In short somebody can explain me here only , with any link.

I should know , how the excise invoice has being created and how capture and post the same will be happened ??

While sending the material for job work. the excise duty value 'll be less .

While receving as finished goods from subcontractor excise value will be more , so hopw this will happen in real time .....???????

Thanks

SAP-MM

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi.

Your scenario comes under u201CSubcontracting Under Full Payment of Dutyu201D .

The basic requirement is that in your pricing you should have manual condition (JEXC) for entering the excise duty of the finished goods which you are getting from the subcontractor.

Rest of the thing is normalu2026

1.First create a sub cont PO as usual. But under conditions you should enter the Excise duty liable on that finished goods

against the condition JEXC. Later you maintain the BOM.

2. Do the transfer posting of the child components.

3. Based on this transfer posting document create a out going excise invoice at J1IS. Here what ever the excise duties comes

will be the excise duties of child components.

4. After this physical send the child components along with the excise invoice.

5. Later the subcontractor process those child components and send you the finished goods along with his excise invoice.

This excise invoice will contains the excise duty applicable on the finished material. Anyway you have maintained this at the

time of PO creation against JEXC condition. If you found any difference in the excise value what you maintained in PO and

that form the subcontractor excise invoice, then amend the PO to the correct value.

6. After that first before GR only capture (not Post) the excise invoice with reference to PO.

7. After that DO the GRu2026

8. After that Post the excise invoice.

9. Finally do the payment by MIRO to the subcontracting vendoru2026

Hope this will clarify your doubt.

Answers (1)

Answers (1)

harishsarathy29
Active Participant
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Former Member
0 Kudos

HI EXPERTS

In short somebody can explain me here only , without any link...

Thanks

SAP-MM

Former Member
0 Kudos

In short somebody can explain me here only , without any link.

I should know , how the excise invoice has being created and how capture and post the same will be happened ??

While sending the material for job work. the excise duty value 'll be less .

While receving as finished goods from subcontractor excise value will be more , so hopw this will happen in real time .....???????

Thanks

SAP-MM

Former Member
0 Kudos

Any inputs