Sub contracting CIN scenario

[former_member1186946]

Scenario 1

I have 2 plants.One manufacturing plant & another is import & local sales plant.No manufacturing activity in 2nd plant.I am

creating 2nd plant as vendor & supplying subcontracting materials to the plant from plant 1 with a PO.I am generating 57f challan

also for the material issued.A 3rd party vendor is doing repair in the plant 2 (vendor) & the material is is received in plant 1 again &

challan is reconciled.Then it is sold to customer.Is this cycle correct?

Scenario 2-The only change in this is, i create a PO as  free goods & generate 57f & all other are same.But when i reconcile

the 57F the system prompts to reverse challan or do not reverse?Why is the difference is this of Free goods PO.

Which cycle has to be followed in scenario the first or second?

[Former Member · Accepted solution]

I believe the First Cycle you are doing is correct.

If you send using free goods, check accounting entries when you are doing goods receipt.

[former_member192897]

Can you elaborate scenario 1 more detailed..

[Prasoon]

Hi,

   First scenario will be the right procedure as of my knowledge. You may test the scenario and validate the excise postings.

Regards,

AKPT