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Samples processing with excise

Dear Experts,

I am facing the following situation and would like to seek your opinion on the same.

Plant is configured and manufacturing plant with excise registration and a GRN is made w.r.t. process order into FG store. (SAP transaction recorded)

From FG store some material is moved to samples storage location but that is not out of the plant premises. Client has demarcated an area called as samples stores within the manufacturing plant premises.

To excise authorities they declare that the material lying in the samples stores in duty paid material.

To indicate the same in the system the following is the process used:

1. Create an internal customer

2. Create Sales order in the name of that customer.

3. Outbound delivery, PGI, Billing document (statistical), outgoing excise invoice using J1IIN w.r.t. billing document to show it as a duty paid material.

Physically material moved from FG to Samples store may be of 10 kg, 50 kg etc. but there is no recording of any transaction in the system for this movement.

Then they will send to customer (actually it is not even a customer, it can be called as prospect) the samples as required which is usually of very small quantities 5 grams, 10 grams etc.and again there is no recording of any transaction in the SAP system as material is already shown as issued against internal SO.

We are in the process of revamping SAP System so with reference to the above process used I seek your opinion on the following points

1. Transfer posting using 311 movement to indicate stock transfer between storage locations within a plant. (Client is okay with this point)

2. Ideally the process should be create customer master, SO, Outbound delivery, PGI, Billing document and outgoing excise invoice every time the material leaves the premises of the plant.

But since the quantities of samples is very less and the number of transactions are huge, users are a little reluctant to create these many documents every time.

Is there any way to simplify the process in such a way that excise requirement is also mapped and inventory transactions IN and OUT is also mapped in the system in a much simpler way.

A little lengthy explanation but please advise.

Thanks and Regards,

Yagnesh.

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1 Answer

  • Posted on Jul 20, 2016 at 02:14 PM

    With one option what you have indicated, you can automate the entire process like creation of sale orders, delivery, billing and excise invoice by having batch job for each process with some required intervals depending upon the transfer posting happening.

    The other option which you can consider is

    • inward the stock via 101 (receipt)
    • issue the stock via 261 (consumption)
    • and for rejections, use 551

    With the above activities, via MB5B, you can show to excise authorities the total receipt, issues and closing stock for a given material.

    G. Lakshmipathi

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      1. Ok
      2. I still prefer 101 over 561 since as per Best Practice, only for initial stock upload, we use 561 movement type. Of course, finance team of your client should take a call on this
      3. As you said, when the users would be reluctant to generate mass documents, will they key in the data in text field each and every time?
      4. Your client can get approval from excise authorities justifying for this proposal

      G. Lakshmipathi

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