Subcontracting

[former_member357396]

Hi,

When we recieve the material after 180 days what is the process we have to carry Gr has to be done or no and then reconcile has to be done or no and then reversal/recredit has to be done or n

[Former Member]

Normally, the work around which is used in many firms is, take back the material with 542 mvt type. Reconcile and complete the challan. Transfer material with 541 mvt type and create sub-contracting challan. This work around is prefered because it doesn't generates any accounting entries.

Otherwise, you have to 'Debit' the 'Part 2' account with amount equals to the challan assessable amount. You can avail the credit again, once all the components are received in the firm premises. But, in this process, you have to keep records of such challans and amount 'debit' and 'credit', which is difficult in practical scenarios.

This is need to be done to avoid 'Debit' entry to the 'Part 2' register as challan exceeds 180 days.

You can check below link as wel

http://www.scribd.com/doc/58793155/User-Manual-CIN

[former_member187965]

Hi,

Ideally if challan exceeds 180 days then you have to debit the equivalent duty to part 2 account and after receiving the final material then you can  avail the credit which was debited earlier.

You can follow the below steps,

1) Receive the raw material through MB1B with 542 mvt type.

2) Reconcile the challan with reference to the above generated material document through J1IFQ

3) Complete the challan through J1IF13

4) Again transfer the material to vendor through MB1B with 541 mvt type

5) Create new challan with reference to the above generated material document through J1IF01

So, the old challan is reconciled and completed and new challan is issued to vendor with next 180 days validity.

[Former Member]

Can you explain what exactly is the case here? From what's given the material is with the vendor for a period of 180 days, so calrify what do you intend to do with this material? Scrap it or receive the material back or charge the cost to the vendor? Explain in a detailed way, so that it would be helpful.

/Manoj

[Former Member]

Hi,

   The material should be scraped and we have to pay the dutys for the scrap material