Sale of Raw Material

[Former Member]

Hi Experts,

The situation I am presenting is related to CIN

My client purhcases PVC Granules for their manufacturing process (import as well as export domestic). Now they have taken permission from Govt. to sell the raw material as-it-is i.e. without any value addition (passing the excise duty to customer - Domestic Sales Only but from both EOU Plant as well as DTA Plant).

My Query is as below:

1. How do we configure this as this process requires Sales View of RM.

2. Do I need to update RG1 in this case ? if yes how ?

3. Any inputs related to process in this (I can suggest a process modification to my customer if we have a better bestpractice for this case).

Please help me as I was not able to find any thing on this.

Note: I don't want to convert the RM to SFG and sell it as this will change the structure from AS-IT-IS scenario to SFG sales.

Thanks in advance !

[Lakshmipathi]

Moved from SAP ERP SD Sales to Internationalization and Unicode.  Please post all your CIN related queries here.

Coming to your query, to sell a ROH material, though, normally, it is not allowed to sell a raw material from an excisable plant, since you have indicated that your client has got necessary permission (I believe they got licence as a trading material), we can leave as of now.  Coming to register updation, once you sell ROH material, it will only update in RG23A and not RG1. 

From SD point of view, all you have to do is to extend sales view to that ROH material and maintain necessary (pricing & tax) condition records.

G. Lakshmipathi

[Former Member]

Hi Sir,

Thanks for the help and apologies for putting in wrong category.

My further question is :

as you mentioned that we have to update RG23A in this case, will this be automatically handled due to definition of the material in J1id as RAW MATERIAL ?

[phanikumar_v3]

Automatic register update is possible only in case of STOs & return delivery to vendors...

remaining need to be with manual effort or by background..

try using J1I5 & J2I5...

Phanikumar

[former_member192897]

Though you can sell the Raw Material by Extending the Sales Views for your Material type, the Nature does not change from Raw Material to Semi finished or finished unless you use in the Production process or Job work process.

Yes, RG23A or RG23C will get updated if you sell it.

Also, Material form is defaulted from J1ID Material & Chapter Id combination. And can be very well changed in J1IEX and MIGO transactions.

[binoy_vargis1]

Yours is a one off case. Are you allowed to book a profit while selling as it is? You may need to change the material type to RG1 in J1IIN for selling. Else you can use J1IH for manual Excise posting. Also extend 601 movement type for RG23A so that you post J1I5 to tally RG23A stock.

Regards

Binoy

[Former Member]

Dear Sachin,

This case is a typical Trading process. You need to configure the plant as Depot and do J1IG and J1IJ.

As there is no value addition to this material, the material type shall be HAWA. RG23D will get updated in this process.

This is just my point of view. Please consider all the above views by the experts.

Best Regards

DS Rajan