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Former Member

Goods issue on loan

Hi all,

Here i had an issue that i want to issue Raw material to customer/vendor on loan with Excise duty and with zero taxes but he will return back the Raw material only with excise duty after few months not the amount,advise me the easiest prosses without opening a new plant either in SD or in MM.

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1 Answer

  • Posted on Feb 16, 2012 at 01:45 PM


    This is what i understood from you scenario,

    You are selling (on loan) to the customer with excise and Zero taxes. And customer will return the material with excise duty and not the amount.

    It's Like renting you material-what i understand.

    If the Excise invoice is created in this process then, here you can follow a simple process of SALE with Excise and the Sales Return with only Excise duty.

    1.XD01 Create Vendor as Customer

    2.VA01 Sale to the Customer

    3.VL01n Delivery Challan

    4. VF01 Raise Invoice to customer

    5.J1IIN Excise Invoice

    When he will return you the goods

    1. VA01 - Return Sale order

    2. Vl01n - Return Delivery

    3. VF01 - Return Invoice

    For Excise Duty you can pass the Journal Vocher Entry J1IH. This is one of the suggestion.

    Need more clarificaion on the process - if can give more details it will be good as how the excise part is taken care as of now .

    Since the scenario is Excisable material related - so the solution will be looked around meeting the legal obligation , so share more details on the excise part.

    ALSO from the MM side there is sub-contracting process where you can give the raw-material to the vendor and can get it back as a semi-finished .



    Edited by: RBhardwaj on Feb 16, 2012 7:15 PM

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