cancelation of excise invoice in return process

For updation of excise related sales returns, run T.Code J1IH and do the following:Customer Credit Choose the Additional excise input the original excise invoice reference, document year, company code, plant and excise group and execute. There input manually what value you need to give credit and save. Cenvat Debit Choose Other Adjustment and here also, maintain the datas whatever you input as above and save.

Customer Returns for Excisable Finished materials RG1 registers update

Ours is an Excisable Plant. The Normal Sales to Invoice process runs fine. When it comes to Customer Returns, kindly help me in understanding the process in receiving the Excise material. Right now, i'm doing the following, 1. Create Return Sales Order w.r.t Orginal Sales Order (VA01) 2. Create Return Del w.r.t Return SOrd. (651 Mvt Type, returns stock) 3. Create Invoice w.r.t Delivery (VF01) In the Excise Invoice area, i would like to know the following 1) Which transaction should i execute and what are the sequence of steps in that transaction. Though i tried different transactions like J1IEX & J1IH, both the transactions are updating RG23A registers. Is it correct. 2) Our Business Process Owners say that when we receive the Finished Materials back again from the customer as a return,it should update the RG1 register. Is that a valid statement. If not , is there any official document/ link we can refer to ? Kindly reply. fyi. the returns qty is a partial quantity due to some defect. Ex:if the main sale qty is 100 , the return qty may be just 10. (just to confirm that we cannot go through the cancellation of main process)

Sol: 1. a) On point no.1, you should always create a return sale order with reference to billing document only and not original sale order which is totally wrong b) Right c) Right. You may also generate credit memo with reference to return order

For updation of excise related sales returns, run T.Code J1IH and do the following:-

Customer Credit Choose the Additional excise input the original excise invoice reference, document year, company code, plant and excise group and execute. There input manually what value you need to give credit and save. Cenvat Debit Choose Other Adjustment and here also, maintain the datas whatever you input as above and save. RG1 register will get updated only for outgoing materials and only RG23A and RG23C will get updated for incoming materials.

Thanks for your inputs. One question i still have is, to my knowledge, RG1 register is meant for Finished Products & RG23A is for Raw Materials. According to your inputs,you are suggesting to update the RG23A registers which is meant for Raw Materials, but, when we intake the Finished Products as a return from customer, shouldn't it update the RG1 register ? Kindly clarify. It would be more helpful if you can suggest me some official documents or a link for reference so that it helps me understand better as well as suggest my FI people with reference to the document.

RG1 register is only related to Quantity updation when excisable good is moved out or into ur manufacturing location. RG23A register is related to Excise Value updation for stock movements. It is nothing like for FG material it is RG1 and for others it is RG23A. Further, RG23A register is more excise value updation for all material types except capital goods. For Capital goods, RG23C register is updated.

Regarding the RG1 register update in case of return stock, please confirm with the business heads whether stock is directly coming to Excis godown for resale or the stocks are taken at quality inspection and then moved on to excise godown. When the stock is moved to Excise godown, RG1 register to be updated. Thanks for your input. Firstly, as per the business req on the returns goods, the finished goods will be taken to Quality Inspection and then to own stock. In SAP , we are planning to get the stock from customer to Returns Stock (651 Mvt Type) through PGR in Delivery and then after QI is done, move the stock to own/unrestricted stock (453 Mvt Type) through transfer posting. Based on the defect of the material, it can be reprocessed again and sent back to the customer or can be scrapped if it's totally defective. That is the scenario. Now, as per your message below," When the stock is moved to Excise godown, RG1 register to be updated." which is my case as mentioned above, How/What transactions should i execute and what are the corresponding steps in those transactions to update the RG1 register.

Stock Transfer Returns

In Stock Transfer Order in Indian Scenario, the goods will be shipped from Plant to Depot and Excise Invoice is made which will be used as reference while updating RG23D depot. Now if the goods are damaged at depot and needs to be returned to Plant which process is to be followed? 1.You can follow the process as below. STO Return Process (from Depot to Plant): 1. Create the Depot as Vendor (XK01). In the vendor master data, assign the Supplying Plant as a Customer. For that you need create a customer master data fro the supplying Plant. 2. Create a Purchase Order in T.code ME21N where specify Depot as the Supplying Plant and original Plant as a Receiving Plant. 3. Create a Delivery in VL10B followed by picking and PGI. 4. Create Depot Excise Invoice at Depot (J1IJ). 5. Create Profoma Invoice (VF01)

6. Goods receipt at the original Plant(MIGO). Here, you need to be careful. Specify the Excise Invoice number and date. At, item details, in Excise item tab, you have to mannually enter the BED, ECS, HEcess etc. Beside thsi , you need to receive the material as "Raw material" in the manufacturing Plant.Beacuse in the Plant goods are received as raw materials as Part II Register of RG23A has to be updated at the Plant. So, specify as Raw material.

7. Capture Excise Invoice at Plant (J1IEX) and click on "Post CENVAT". 2. In this case, You should return the stock with same STO process but first you intimate the excise department that this type of return process we do in SAP. Because of return goods issue and comes at manufacturing plant excise department will must come in this process. If you do not want to do this then you can return this stock at your godown which not comes in excise scenario.

3.

The is the Return process from Depot to Parent Plant

1) Go to J1IG and click on red cross icon 2) Key in the material document number generated during MIGO 3) Key in Year, Series Group of Depot and execute 4) Now click on "Item" icon so that you will be taken to next screen where you will be able to see line item for RG23D cancellation 5) Save 6) System prompts you asking whether to cancel the entry 7) Click YES 8) A message will pop up stating RG23D entry is deleted 9) You can verify in table J_1EXCHDR & J_1IRG23D. Check GRPO entry in both the tables where the status should have been D 10) Original excise invoice can be cancelled in J1IH 11) Check whether DLFC entry has the status R and at this time CEIV is also created confirming excise invoice and cenvat reversal

thanks G. Lakshmipathi

4. Thanks for the Replies. But the Cancellation of J1IG and J1IH can be done only for the entire document.
If it is part quantities and from different document numbers, the process mentioned by Pradyumna is the best. Please advise if I am correct.