Customer tool(Capital goods material)

[former_member187989]

Dear all,

What is SAP Process for taking credit of customer tool(which is a capital goods materials for customer) which is used for production(later return to customer),duties are BED,AED,Cess,Hecess(Register to effect are RG23C) ?

Jeyakanthan

[Former Member · Accepted solution]

Hi,

We had a similar requirement for one of our clients. We mapped as given below. We created one separate pricing procedure.

Step1) Basic Price PR00 1000 INR,

Step2) Tool cost Z001 10 INR,

Step3) Subtotal1 (Step 1&2)1010 INR,

Step4) BED 8% on step3: 80.80 INR,

Step5) ECess on step4: 1.62 INR,

Step6) SECEss on Step5: 0.81 INR,

Step7) Subtotal (Step3 to 6)1093.22 INR,

Step8) Less Tool cost(Step2): - 10 INR,

Step9) Taxable amount (Step7 minus Step8)1083.22 INR,

Step10) 12.5%VAT on Step9: 135.40 INR,

Step11) Grand total (Step 9 & 10) 1218.63 INR,

Here the condition type is a surcharge linked with the material. The condition record for Z001 is maintained. For different materials different tool costs are maintained. You can generate a report on tool cost Z001 with respect to the materials.

This information may be useful to you.

Regards,

K Bharathi

[Lakshmipathi · Accepted solution]

Step1) Basic Price PR00 1000 INR,
Step2) Tool cost Z001 10 INR,
Step3) Subtotal1 (Step 1&2)1010 INR,

Need just one clarification. What unit rate will show in billing print out. Is it 1000 or 1010 ?? If it is 1010, according to excise rule, it is wrong and you are not suppose to include tool cost in selling price. You should show separately for which, you have to fetch some text in billing document stating that duty is calculated based on assessable value xxxxxxxxxx

thanks

G. Lakshmipathi

[former_member187989]

Thanks

[Lakshmipathi]

1) First you have to arrive the assessable value of that tooling. Let us assume, it is Rs.2.00 Lakhs which you need to amortise proportionately in the billing.

2) Create the tool in material master with material type FHMI

3) Client would be producing and despatching materials made out of this tooling and the total quantity to be produced would be say 10000 nos. Arrive assessable value for these materials in J1ID which would be Rs.20/- per piece

4) Let us assume your selling price in VK11 is Rs.530/-. You should then maintain the assessable value as Rs.550/- in J1ID so that duty will be calculated only for Rs.550/-

5) Once the value cross or the tool is being returned to customer, remove the assessable value from J1ID master.

The above suggestion is based on the assumption that the tool would be provided on FREE OF COST.

thanks

G. Lakshmipathi

[former_member187989]

Thank you Mr.Lakhmipathi,Amortization is already configured in system,

Here we are selling material to customer as well receiving tool for production from him,

material is non valuated for us,how to receive material & also to take modvat credit(50%) for tool ?

the tool is being returned to customer

What is process for returning tool to customer ?

Edited by: Jeyakanthan A on Feb 13, 2010 5:40 PM