Skip to Content
avatar image
Former Member

CIN

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

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

3 Answers

  • Best Answer
    Aug 11, 2008 at 03:33 AM

    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

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Aug 11, 2008 at 09:34 AM

    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

    Add comment
    10|10000 characters needed characters exceeded

    • 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

  • avatar image
    Former Member
    Aug 11, 2008 at 12:56 PM

    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

    Add comment
    10|10000 characters needed characters exceeded