Hi

In our current scenario, we process the metal sheets and produced the Engg. Units, as we consume the full lenght metal sheet in our production orders and the scrap is generated in the form of small cut pieces. To over come this situation we will punch the -ve qty of cut pieces (Item code) in bom as a purchase item and at the time of reciept it will also be recieved in wh.

As the qty is recieved in wh for cut pieces as it is excisable and cenvatable item with RG23 a/c checked, the registers shoul be updated.

But in over case it not update the RG23 a/c registers for bi-products.

Plz suggest !
:)

The Sheet metal when purchased was taken for Cenvat entry & Rg23A was updated. The sheet metal is now issued against Production order.
Cut pieces or rather scrap generated after operation on sheet metal, is the bi-product of the Production Order, and these can not be taken into RG23A again.
It does not happen in BaanIV & LN6.1
If the scrap is in good condition, then you can use it by issuing against another production order. And if you want to Sale it as scrap, then just thake RG1 manual entry & against Sales Order-Sales Invoice-Excise gatepass you sale it.