CIN

[Former Member]

Dear Gurus,

There is one scenario which I need to map in SAP, please if anyone could help me out with this.

It follows as,

I get a component from my client to which I add my component.

But when I get the component from my client, I show it as a purchase but only for Excise purpose so as to avail the cenvat credit.

When I bill the customer, I calculate excise on the entire assembly (I.e. on clientu2019s component and my component) and after that in the same invoice I deduct the cenvat credit availed on the clientu2019s component and the on balance I charge the VAT(LST or CST) I charge VAT only on my product.

And there is no value change in the clientu2019s component.

Example:

The clientu2019s component comes in base price 100000

Excise duty 14000(14%)

-

---

Total 114000

We avail the cenvat credit of 14000 Rs.

Invoice to the customer:

Clients Component (value 100000)

My component 50000

Total Excise duty 21000

(100000+50000*14%)

Sub-total 71000

Less cenvat credit 14000

Sub-total 57000

Vat 4% 228

(57000*4%)

Total invoice amount 57228

Thanks & Regards

[Lakshmipathi · Accepted solution]

Dear Rish

First create a condition type in V/06, for the customer component price, have access sequence in V/07 and maintain the component price of 100000 in VK11. Say this condition type is ZASV

Then have your pricing procedure as follows:-

Step no. CType::::::From::::To

100:::::::PR00

105:::::::ZASV

110:::::::SubTotal:::::100:::105

115:::::::ED:::::::::::::110

120:::::::JIN6/VAT::::100

By having the above step number, your excise duty will be calculated on the total value of your component (50000)+customer component (100000) but VAT will be calculated only on PR00 value.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Dear Lakshmi,

first of all thank you for the answer.

But I have this doubt that where does the value for ZASV come from.

And what access sequence should I need to maitain for this condition.

Please let me know.

Thanks & Regards

[Lakshmipathi · Accepted solution]

Dear rish

ZASV is just a dummy condition type I have indicated for easy identification. You can rename it as per your convenience.

Go to V/06, create this condition similar to PR00 settings. There on the right side top, you will see a field [Access Sequence] You can maintain the same condition type (ZASV) and save.

Now go to V/07, select this condition type and double click on Access. You can see a screen to your right side where you click on New Entries. There

- If you want this condition to be applied based on material, maintain table 004

- If you want this condition to work on Customer / Material combination, maintain table 005 and save.

Now go to VK11, input this condition type and maintain the customer component price for that material and Save

As already explained, maintain pricing procedure with step numbers indicated therein.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Dear Lakshmi,

Thanks for clarifying.

[Former Member]

Rishi,

This is standard process in any industry. Have a look at the SAP supplied pricing procedure JINFAC if you want to use the TAXINN procedure,

All cenvat credit will be entered in your rg23A part 2 and when you sell the cenvat to be paid will be calculated setting off the cenvat credit. This will be done in utilisation. Purchases are posteda @ MIRO wherein the cenvat credit is taken and Duty payable is computed @ RG1 and utlisation is takes care of the setoff.

Regards

Jude

[Former Member]

HI,

JUST FOR INFORMATION I LIKE TO KNOW THAT NORMALLY VAT IS APLIED ON TOTAL SALE VALUE(PRICEEXICECESSHCESS). IN YOUR CASE SALE PRICE OF THE TOTAL COMPONENT SHOULD BE (VENDOR'S COMPONENT YOUR COMPONENT) AND YOU ARE EXCLUDING VENDOR'S COMPONENT PRICE FROM CALCULATION OF VAT. KINDLY CLARIFY ME JUST FOR MY KNOWLEDGE. YOUR PROBLEM CAN BE SOLVED USING LAKSMIPATHI'S SOLUTION.

KAUSHIK

[Former Member]

Dear Kaushik,

it is the vendor's component on which the body is loaded.

so we are not selling that component which my customer is sending.

this is just a transaction doen to basically for excise purpose. As i have mentioned my client avails credit on the component sent by the customer.

so they use it only while calculating Excise duty and not for VAT.

Hope I'm clear

Bye