Die Amortization

Die Amortization In this Scenario we are having following two cases: Case-1: When JBM is giving its own die to vendor for manufacturing the parts, then Die Amortization charges are applicable for Excise Calculation only. After Excise calculation this price should be reduced from Basic Price and accordingly payment needs to be done to vendor. Process will be as follows: 1. Sending the die to vendor on FOC PO(Sub Contracting) 2. Transfer Posting of the Die at vendor end in the system through MB1B using movement type 541. 3. Creation of Subcon Challan through J1IF01 4. Create Normal PO/Scheduling Agreement for components with condition type ZDAC 5. Do the GRN of Components(103 & 105) 6. Do J1IEX for Part-2 of components 7. Do MIRO 8. Receiving back the die against FOC PO

Create Subcon PO:

Transfer Posting: MB1B-541

Create Sub Contracting Challan: J1IF01

Create Purchase Order for component: ME21N

PO number generated

GRN: MIGO-103

Material document number generated

Post Internal Excise Invoice: J1IEX

Enter our internal excise number generated during MIGO against Vendor excise number

Posting of Invoice: MIRO

Enter Purchase Order number

Invoicing document generated

Case-2: JBM has given the PO to vendor for manufacturing of Die. First die will be received back from vendor and payment will be done as per payment terms (full or 50%) and excise duty will be paid on the total amount and if partial payment is done then rest of payment will be done on subsequent delivery of component when die will be sent on the 57F4. In this case process will be as follows: 1. Create Normal PO for Die using ME21N 2. Maintain the details of die PO in T Code-ZDIE01 3. Create PO for component, with conditions ZDIE and ZDAC & attach die PO umber in the tab-Customer Data 4. MIGO of component 5. MIRO

Create for Die: ME21N

PO creator will be knowing at what rate Die Amortization charges to be payed.

This condition is attached for balance payment to be given to vendor. In ZDIE01 we entered Settlement amount=5000 and settlement qty. =500 so die cost will be

Enter Die PO number and line item

Meanings of Various field s in the Customer Data Tab 1.) Component Settlement Qty 2.) Balance Settlement Qty 3.) Component Received Qty

1.) Component Settlement Qty : It is the total qty by which cost of the die is to be settled during the purchase of the components from the vendor. 2.) Die Settlement Amount : It is total amount which is to be settled down /piece of the component during the purchase of the component from the vendor. 3.) Settlement Amount per component: It is the amount , which is to be settled with the cost of per component.

For example: Total Die Amount which is to be settled with the component cost is Rs 100/- and 1 Re on each component.

So the Component settlement qty is 100 Die Settlement Amount is Rs 100 Settlement Amount per component is Re 1

4.) Die PO Validity Date: It is the date till which ,we can settle down the amount of the die with the component qty , if this date is passed , then system will through an error message and ask to remove the ZDIE condition ,so that the Die Amount should not get settled down with component qty. 5.) Die PO settled Qty: It is the qty which is already got settled down (GRN done) with the components qty and it will keep upating . 6.) Balance Settlement Qty: It is the unallocated qty to any component PO ,so that this qty can be used in the another Component PO , with which this Die PO is going to be attached. 7.) Component Received Qty : It is the qty of the components which has been received w.r.t the component purchase order –line item .

PO for component created

MIGO

Do MIRO