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Scarped into Customer Location

HI Every One,

I have business case like this

Customer is ordered 1000 bottles , we done the delivery , billing and excise invoice

but some bottles are broken in the transportation , for example 100. the Mgmt said that scarp in the customer location and raise the credit note

My question is how to handle the inventory and how to handle the excise duties



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2 Answers

  • Posted on Jan 06, 2012 at 11:02 AM

    For this scenario, you need to create

    return order - PGR(M Type 671) - Credit Memo - J1IH



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    • Thanks for reply Mr. Prakash,

      if we are raising the return order means we are receiving the material from customer and keep it the storage location (unrestricted or quality )

      My case we are not receiving any material from customer location , and also no goods movement happened



  • Posted on Jan 06, 2012 at 11:23 AM

    The process you have to follow are

    a) Create an Order Reason as required by you

    b) Create a return order and assign this order reason

    c) Maintain the quantity what was damaged in transit

    d) Raise a credit note in reference to this return order

    e) Adjust CENVAT entries via J1IH

    G. Lakshmipathi

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    • I have a feeling that you have not understood my explanation clearly.

      1.What the difference between with Qty return and without Qty return

      It differs only in physical activity. In SAP, whether the client is taking the goods or not, according to excise authorities, it is immaterial. They will audit only if you avail the credit to the extent of duty paid already.

      2.What is the impact in excise point of view like Registers ?

      The impact is if you do J1IH, one off-set entry will get posted; that is for one debit entry, once you do J1IH, credit entry will get updated

      Needless to mention, please brainstorm with the key users who should be more professional from business point of view and in fact, they are the deciding authorities as to how their requirement should be captured in SAP.

      G. Lakshmipathi

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