Subcontracting Process w/o Payment of Excise Duty

Subcontracting Process Subcontracting without Payment of Duty - Creation of Subcontracting PO (ME21N) - Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO) - Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01) - Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO) {GR with 101 and autoconsumption of components with 543 movement} - Reconciliation of Subcontracting Challan (J1IFQ) - Completion of Subcontracting Challan (J1IF13) - Generation of Annexure IV (J1IFR) Master Data - MM01- Material Masters for Components and FG - XK01 - Vendor Master (Subcontractor) - CS01 - BOM for FG - ME11 - Purchase Inforecord for Subcontracting Configuration: - Go to SPRO > Logistics - General > Tax on Goods Movements > India > Account Determination > Specify Excise Accounts per Excise Transaction > Here maintain as following; ETT Subtrn Typ DC ind Acct name 57FC CR PLABED 57FC CR RG23BED 57FC CR RG23ECS 57FC DR CLEAR 57FC 01 CR PLABED 57FC 01 CR RG23AT1 57FC 01 CR RG23BED 57FC 01 CR RG23ECS 57FC 01 DR CLEAR 57NR CR CLEAR 57NR CR PLABED 57NR CR RG23BED 57NR CR RG23ECS 57NR DR REVERS 57NR 01 CR CLEAR 57NR 01 CR PLABED 57NR 01 CR RG23BED 57NR 01 CR RG23ECS 57NR 01 DR REVERS - And then go to SPRO > Logistics - General > Tax on Goods Movements > India > Account Determination > Specify G/L Accounts per Excise Transaction > Here do Account Determination for the above combination and Excise Group Apart from above also do following configuration for Subcontracting; - SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Subcontracting Attributes Here maintain following; Excise Group XX Excise TT 57FC Subtransaction Type 01 Subtran Type Text 57FC CHALLAN Subc. Period 180 Rate-subcontracting Mvt Grp Issues 0001 Mvt Grp Receipt 0002 Filter Non exise EI Items 10 No. range no. 01 Ass. Val. /Exc Inv Subcon Output Type J1IF - SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Maintain Movement Type Groups Here maintain following

MVT. Grp. MvT S 0001 101 O 0001 541 O 0002 542 0002 542 O 0002 543 O - J1I9 - maintain No range for object "J_1I57FC" for series group

S/c Cycle without CIN Create PO with item category L Send material(components )to vendor. make the GR against the PO Do MIRO for s/c charges.

S/c Cycle with CIN 1) ME21N - Create PO with Item category as 'L' 2) MB1B (541 MVT TYPE) Send material(components )to vendor. 3) J1IF01 - Create s/c challan(57F4) (use 541 doc number) 4) MIGO - Do GR for PO (in Excise tab select wrt to subcon challan). 5) J1IFQ - Reconcille challan 6) J1IF13 - Complete challan/Close challan 7) J1IFR - VIEW SUBCONTRACTING CHALLAN. 8) MIRO for S/c Charges