Settling Depot increased price with Customer

[Former Member]

Hi All,

Whenever there is a increase in price for the Depot materials, we are adjusting the additional excise value using J1IGA.

This is a standard process.

We will calculate the differential amount every 6 months and settle the amount via Credit memo.

So business process will have Credit Memo Request (VA01)  and Credit Memo (VF01). No Outbound delivery involved here.

To create J1IJ, either Outbound Delivery or Material Document is required.

In this case how to adjust the additional value entered using J1IGA from RG23D register.

Any solutions available in standard.

Regards,

Raja Durai

[Lakshmipathi]

Similar discussion have already taken place long time back

G. Lakshmipathi

[Former Member]

Hi Lakshmipathi,

As I mentioned earlier, till J1IGA, I have no issues.

But after that, as per our requirement, we are settling the differential amount by Credit memo.

In this case, there is no outbound delivery. So how to utilize the additional excise without Outbound delivery or Material document.

Regards,

Raja Durai

[Former Member]

Hi All,

Any suggestions.

Regards,

Raja Durai

[Lakshmipathi]

Logically, only for the stocks available in Depot, the end customer will approve pro-rate price increase and having said this, whatever suggestion given in the link will holds good.  In this case, you can very well create a delivery and generate billing document subsequently.  I don't think, after despatching materials to end customer from Depot, there will be price increase.

G. Lakshmipathi

[Former Member]

Hi Lakshmipathi,

Even I argued the same. How is it possible to increase the price of a Product which was already invioced.

But strangely, we have this scenario in our client.

As per your suggestion, you mean to say, even if it is a credit memo request, we need to create a Delivery and create J1IIN with reference to that Delivery.

Is my understanding correct.

Regards,

Raja Durai

[Lakshmipathi]

 you mean to say, even if it is a credit memo request, we need to create a Delivery and create J1IIN

I never said like this.  Only for the stock available in Depot, you can create delivery and invoice.  For already despatched, you cannot levy any duty and according to Excise law, this is against the rule and excise authorities may put penalty for that, for having shown incorrect excise records.  Better you raise this question with your client whether excise authorities will approve this.

G. Lakshmipathi

[Former Member]

Hi Lakshmipathi,

Thanks for the response.

Understood your point now.

Regards,

Raja Durai