RG23A Part 1 updation for 261 movement type

[Former Member]

Hi,

         We have a business scenario where the same raw materials are procured from both excisable and non-excisable vendors. When purchasing from excisable vendors, CENVAT credit is availed and RG23A Part 1 and RG23A Part 2 entries are updated. When purchasing from non-excisable sources at the time of goods receipt in MIGO 'No Excise Entry' option is chosen.

When subsequently materials are issued to production order using movement type 261, we try to consume this inventory from RG23A part 1 using transaction J1I5. However we come across cases where the material document qty is more than the balance qty in Rg23A part 1. This is because part of the inventory comes from non-excisable purchase.

In this case how do we update RG23A Part 1 for the partial CENVATABLE inventory?

Regards,

Sridhar

[former_member192897]

If the Material code is procured from Excisable Vendors and Non Excisable vendors, then it is recommended to Maintain seperate Material code for Cenvatable and Non Cenvatable. The same applies to Vendor Master Records.. In this way, you will have clear inventory of both Excisable and Non Excisable and there would not be any issues with Updating the Excise registers.

[binoy_vargis1]

Better to have a different material. Otherwise you should not do J1I5-261 for those stock which has not been procured with Excise Duty.

What is the issue if you do the J1I5 with ROP and RG23A option for all the 101 movements as you have maintained this material in J1ID. You can avoid doing Part 2 entry. Else Select "Only Part1 entry" in MIGO for non excise entries.

Regards

Binoy

[Former Member]

Hi Ashok/Binoy,

                                  Thanks to both of you for your answers. We are unfortunately not able to maintain multiple materials as the number of raw materials are very high and also maintaining bill of materials with multiple BOM's was considered not practical by the client. I then discussed the situation with the client's excise department with what Binoy had indicated. We have decided to make a "Part 1 entry only" during MIGO. The excise person indicated that this would be ok.

Thanks again for taking time to reply.

Regards,

Sridhar