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depot sales

Hi all,

Can anyone say me the flow or process of depot sales and Deemed export

Thanks,

Narsimha Reddy

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5 Answers

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    Former Member
    Aug 22, 2007 at 09:39 AM
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    Former Member
    Aug 22, 2007 at 09:39 AM

    Hi

    Country Version India comes with four pricing procedures as follows:

    • JINFAC (Sales from manufacturing plants)

    • JINEXP (Export sales)

    • JINDEP (Sales from depots)

    • JINSTK (Stock transfers)

    You may sell finished goods directly from the place of manufacture, as described under Sales from Factories, or you may first ship them to a separate location for storage (a depot), from where you will sell them. The second procedure is described here.

    Deemed Exports Locate the document in its SAP Library structure

    Use

    You can ship deemed exports to any customers in possession of a deemed export license without paying any basic excise duty, but only if the goods are accompanied by an ARE-3 document.

    Activities

    Customizing

    Carry out the IMG activities in Customizing for Logistics – General, under Tax on Goods Movements ® India ® Business Transactions ® Exports Under Excise Regulations ® Deemed Exports and … ® Printouts of ARE Documents.

    Master Data

    Enter your customers' deemed export licenses in the system.

    Day-to-Day Activities

    In order to qualify for an exemption from excise duty, all deemed exports must be accompanied by the appropriate paperwork, including an ARE-3 document, and you must complete the deemed export within the rewarehousing period. To process and track ARE-3s, use the ARE Documents functions, following the process described under ARE-3 Processing.

    You can only issue an ARE-3 with reference to a customer's license. The system automatically keeps track of the license balance.

    There are two ad-hoc reports that you can use for tracking licenses and ARE-3s: Deemed Export License Summary and Aging Analysis for ARE Documents.

    Sales from depots are handled differently from sales from factories because of excise law: Excise duty is payable when you send the goods from the factory to the depot, but it is not levied again when you sell the goods.

    Sometimes when you make a final sale of goods from a depot, price escalations could have happened with retrospective effect. In such scenarios you need to pay the extra excise duty at the factory using an A Certificate. You need to register the A certificate details in the RG 23D register and the excise recovered from the customer.

    Prerequisites

    You have customized:

    • Stock transport processing, in Customizing for Materials Management (MM), by choosing Purchasing ® Purchase Order ® Set Up Stock Transport Order

    • The copying control for copying stock transport order NL to excise invoice JEX

    Make this setting in Customizing for Logistics – General, by choosing Taxes on Goods Movements ® India ® Business Transactions ® Outgoing Excise Invoices ® Assign Billing Types to Delivery Types.

    • The item category NLN (standard transport order) so that it is relevant for billing

    You do this in Customizing for Sales and Distribution (SD), by choosing Sales ® Sales Documents ® Sales Document Item.

    Process Flow

    1. You create the sales order, following the

    Structure linkstandard procedure.

    The standard pricing procedures for depot sales are J1INDEP (condition-based excise determination) and JDEPOT (formula-based excise determination).

    2. You create the delivery, again, following the

    3. Structure linkstandard procedure. You

    4. assign excise invoices to the delivery or material document. You

    5. verify that you have selected the correct excise invoices and post them. Alternatively, if you have selected the wrong excise invoices, you can cancel the assignment. You create the invoice, following the

    Structure linkstandard procedure.

    Deemed Exports

    Use

    You can ship deemed exports to any customers in possession of a deemed export license without paying any basic excise duty, but only if the goods are accompanied by an ARE-3 document.

    Activities

    Customizing

    Carry out the IMG activities in Customizing for Logistics – General, under Tax on Goods Movements ® India ® Business Transactions ® Exports Under Excise Regulations ® Deemed Exports and … ® Printouts of ARE Documents.

    Master Data

    Enter your customers' deemed export licenses in the system.

    Day-to-Day Activities

    In order to qualify for an exemption from excise duty, all deemed exports must be accompanied by the appropriate paperwork, including an ARE-3 document, and you must complete the deemed export within the rewarehousing period. To process and track ARE-3s, use the ARE Documents functions, following the process described under ARE-3 Processing.

    You can only issue an ARE-3 with reference to a customer's license. The system automatically keeps track of the license balance.

    There are two ad-hoc reports that you can use for tracking licenses and ARE-3s: Deemed Export License Summary and Aging Analysis for ARE Documents.

    http://help.sap.com/saphelp_470/helpdata/en/7d/08683c54e89846e10000000a11402f/frameset.htm

    Message was edited by:

    SHESAGIRI.G

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    Former Member
    Aug 22, 2007 at 09:40 AM
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    Former Member
    Aug 22, 2007 at 09:40 AM

    Hi Narisimha Reddy,

    DEPOT Sales:

    The sale which is taking from Depot is called Depot Sale.

    The Pricing Procedure used for Depot Sale given Below:

    1. In TAXINJ - JDEPOT - Depot Sales

    2. In TAXINN - JINDEP (Sales from depots)

    TAXINJ & TAXINN are Tax Procedures in India. TAXINJ is old version & TAX INN is new version. Both has its own advantage & disadvantage.

    Upto 4.6C & partially 4.7 version of SAP, TAXINJ was used. TAXINJ is formula based calculation, in which we maintain the tax rate in Tax Code itself. The implication is that if say we are having product range such that say Excise rate differes for separate chapter ID, VAT, CST & permutation & combination of these, we require that many Tax Codes.

    During depot sales if you do not want to do RG23D selection and posting separately and would like to complete RG23D selection in one step mark the indicator 'RG23D Auto post'. This will post the selected records into RG23D automatically. You cannot cancel the selection later.

    For excise invoice creation the object is J1II. For depot receipts the object is J1IG and for depot sales it is J1IJ.

    JMOD is a FI Tax condition which gets the Basic Excise duty from calculation formula 352. JEX2 is a copy of JMOD and is a Sales pricing condition. The value of JEX2 gets posted for Excise account key. This ensures that the cost accounting of excise value paid is done correctly. In cases where commercial invoice is created after utilization the condition value formula 353 ensures that the actual MODVAT utilized is accounted as excise.

    Similarly JAED is a FI Tax condition which gets the Additional Excise duty from calculation formula 352. JEXA is a copy of JAED and is a Sales pricing condition. The accounting is done for the value of JEXA.

    JSED is a FI Tax condition which gets the Special Excise duty from calculation formula 352. JEXS is a copy of JSED and is a Sales pricing condition. The accounting is done for the value of JEXS.

    JCES is a FI Tax condition which gets the CESS from calculation formula 352. JCED is a copy of JCES and is a Sales pricing condition. The accounting is done for the value of JCED.

    So, Conclusion :---->

    JMOD -- > Basic Excise duty condition for FI side.

    Corresponding to it, JEX2 is the Basic Excise duty condition for SD side.

    That's why account key to JMOD is linkes in TAXINJ.

    And account key to JEX2 is linkes in JDEPOT.

    Please Reward If Really Helpful,

    Thanks and Regards,

    Sateesh.Kandula

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    Former Member
    Aug 22, 2007 at 09:41 AM

    Hi

    Sales from Depot

    Process Flow

    Customer and Material masters

    Creating Sales order

    Creating Delivery document

    Creating Depot Excise Invoice

    Creating Billing document

    Key Points

    Depot Excise Invoice

    http://help.sap.com/bp_bblibrary/500/html/J95_SaleDepot_EN_IN.htm

    Reward if it helps

    Regards

    Prasanna R

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