Import
Scenario - Importing from a Third Country
Purpose
This scenario describes the processes involved in importing goods into your country
from a third country. In this sense, a "third country" is defined as the country of export
when no trade agreement exists between your country and the exporter. In this case,
you are responsible for compliance with the import laws of your own country.
Reasons for Importing Goods
There are three primary reasons for importing goods.
Trade
Production
Transit
Trade
There are three main reasons why you may want to import for trade purposes:
Comparative advantage – Some foreign manufacturers can make products more
cheaply.
Availability – Some products are only available in foreign markets.
Marketability – A product may be new and you want to market it in your entire country
or in a region of your country.
Production
It is sometimes advantageous to import raw or semi-finished materials to be used in a
manufacturing process.
Transit
Foreign merchandise with the status "in transit" is exactly that – passing through your
country on the way to another. At the plant level in the SAP System, this refers to a
goods receipt that immediately becomes a goods issue to a country other than the
location of your plant. A carnet TIR (document which allows passage of foreign
merchandise through a customs territory) may be required for the transfer of goods
under bond in your country.
Foreign Trade Data in Purchasing Documents
Data that describes the import or arrival characteristics of a purchasing transaction.
Structure
Foreign trade data appears at the header and in the items themselves in purchase
orders and shipping notifications (inbound deliveries).
The vendor master records, material master records and purchasing info records
propose this data.
Foreign Trade Data in Purchase Order, Shipping Notification and Goods Receipt
Headers
Data Description Comments
FT/Customs # Mode of transport The system determines this
data The technical customs term describing data from the vendor
the type of transport (for example, see master and uses it as a
or air transport) used to take the goods default value in the
across a national border purchase order, shipping
notification and goods
receipt.
#Office of entry
The key for the border customs office
where the goods are unloaded from the
mode of transport used for crossing
the border
Partner data Vendor The vendor key The system copies this data
Delivery vendor from the purchase order to
Country key the shipping notification
and goods receipt.
The vendor country key
Foreign Trade Data in Purchase Order, Advance Shipping Notification and Goods
Receipt Items
Data Description Comments
Material data Material The material key The system copies this
for the item Description data from the material
master record.
A description of the item
Commodity/Import code
Weight and volume
Origin The goods’ country of The system copies the
origin country of origin from the
The good’s country purchasing info record as a
and region of default value. It copies the
destination
country and region of
destination from the
ordering plant.
Transaction Import procedure The With the appropriate
procedure by which the settings in Customizing,
goods being imported are the system determines the
transaction type
declared to customs. This automatically based on
is copied from the criteria like the importing
purchasing info record. country or the item
Transaction type category. The system then
copies the data to the
The classification of the purchase order
type of transaction contract
Value Statistical value The untaxed value of The system calculates the
the goods, including transportation and statistical values in pricing
insurance costs that arise in the in the purchase orders.
importer’s country
Other customs Customs quota The system uses this data
data CAS number to calculate import duties
Manufacturer number to be levied.
Anti-dumping code
Preference rates
Maintenance of FT Data in Purchasing Documents
This function describes the maintenance of foreign trade data required for importing
merchandise in purchase orders and shipping notifications (inbound deliveries).
Activities
To change or display a purchase order from the SAP standard menu, choose Logistics
Materials Management Purchasing Purchase Order Change or Display.
To change or display an inbound delivery (advanced shipping notification) from the
SAP standard menu, choose Logistics Materials Management Purchasing
Purchase Order Inbound Delivery Change or Display.
To change or display a goods receipt from the SAP standard menu, choose Logistics
Materials Management Inventory Management Material Document Change or
Display.
You can retrieve and check a list of existing purchase orders for completeness from
the Import section of the Operative Cockpit. For this procedure, see
Scenario - Daily Import Operations.
To check a single purchase order for completeness choose the Individual Maintenance
tab in the General Foreign Trade Processing Cockpit. From this cockpit, in the Item
Overview section of a purchase order, you can simulate an import to check and
maintain foreign trade data completeness by choosing Import Simulation.
To maintain data in
Menu path in document
You should know
The purchase order header
In the purchase order header, choose the Address and Import tabs
You can display all foreign trade data in the purchase order header easily from the
General Foreign Trade Processing Cockpit under Individual Maintenance. To display
the incompletion log for FT data in the header, choose Log of Incomplete Items.
A purchase order item
In the purchase order, select the item in the Item Overview section. In the Item section
at the bottom of the screen, choose the Quantities/Weights, Delivery, Delivery address
and Import tabs
You can display a log of all incomplete FT data in the purchase order item easily from
the General Foreign Trade Processing Cockpit by choosing Log of Incomplete Items.
The inbound delivery (shipping notification) header
In the inbound delivery, choose Go to Header Foreign Trade / Customs
To check whether the foreign trade data in the header is complete, choose
Incompleteness analysis.
An inbound delivery item
In the inbound delivery, select an item and choose Go to Item Foreign Trade /
Customs
Choose Incompleteness analysis to determine whether all foreign trade data is
complete in an inbound delivery item.
Foreign Trade Data in Master Records
Definition
Master data relevant to foreign trade that is used throughout the entire logistics chain
in Materials Management (MM) and Sales and Distribution (SD) documents.
The system‘s automated foreign trade processing depends on complete master data.
To ensure efficient import and export processing, you need to maintain the master data
thoroughly.
Structure
This section provides a detailed list of the data relevant for using SAP's Foreign Trade
(FT) application component in the following master records:
Vendor master record
Purchasing info record
Material master record
Customer master record
Cockpit Access: In addition to checking this data from the SAP standard menu paths
described below, you can check whether foreign trade data is complete in master
records in one step from the General Foreign Trade Processing Cockpit. From the
Master data section of this cockpit, you can create, view and modify each of these
master records.
Vendor Master Record
To go to a vendor master record from the SAP standard menu, choose Logistics ®
Materials Management ® Purchasing ® Master data ® Vendor ® Purchasing
You can maintain data relevant to foreign trade on the following screens of the vendor
master:
Address
Vendor’s city
Postal code
Country
Region
The vendor’s country helps indicate import transactions in MM documents. You need
the vendor’s region for declarations to the authorities.
Control
This screen contains accounting data including the vendor’s VAT registration number.
The system copies the vendor’s VAT registration number from the vendor master
record to the purchase order as a default value.
Purchasing data
Order currency
Terms of payment
In co terms and Schema Group vendor for import pricing procedure
The mode of transport indicates how the imported goods cross the border.
Office of entry (at the border)
The border customs office code specifies the office through which goods usually arrive
in the country. The vendor master record supports only one Office of entry.
Purchasing group
To display or maintain data for preference processing from this screen, choose Extras
Tariff preference.
Purchasing Info Record
The purchasing info record represents the link between the vendor and the material
delivered and overrides the vendor master record. Communication between the vendor
and your plant can be made easier using purchasing info records.
To go to a purchasing info record from the SAP standard menu, choose Logistics ®
Materials Management Purchasing Master data Info record.
You can maintain data relevant to foreign trade on the following screens:
General data
Country of origin
Region of origin
Certificate category (the type of certificate—for example, a
certificate of origin—issued by the vendor)
Certificate number
Date until which the certificate of origin is valid
Confirmation control key
Export/import procedure
Material Master Record
To go to a material master record from the SAP standard menu, choose Logistics
Materials Management Material Master Material.
You can display or enter data relevant to foreign trade in the following views of the
material master record:
Foreign Trade: Import data
Import code number (or commodity code)
Export/import group (a grouping of similar materials for export or
import transactions)
Country of origin
Region of origin
Create Purchase Order (ME21N)
A purchase order is a legal document used to record an individual purchase with the
vendor. It also provides the vendor with a reference document to link to goods receipt
and invoice verification processes. The purchase order is a commitment to a vendor
for a given material, in a specified quantity at a predetermined price and delivery date .
Enter import vendor, Purchase Organization, Purchasing Group, Company code,
Material Number, PO qty, and Delivery date
Enter Office entry in geography tab
Condition tab
Enter commodity code and import code number
In Purchase Order of main imported vendor GR-based invoice verification tick should
not be there on invoice tab.
Since the purchase order vendor is 300103 who is imported vendor and he is nothing to
do with the customs duty, special customs duty and countervailing duty. These three
duties are paid to the local Commissioner of Customs, vendor code 300104 in our case.
The Customs Agent Charge is paid to the Customs Agent, Vendor Code 300104
Normally the Freight is also paid to the Customs Agent who in turn would have had
paid to the respective Transport Operator (if different. Normally the CFA owns a
transport company) and the Port Authorities.
It is recommended to change the vendor code 300104 for this three-condition types
viz., JCDB, JCV1, JECV, and JEBC.
To change the vendor for condition type select JCDB condition type and choose on
Condition detail icon located at left bottom side of your screen.
System will take to new Item – Conditions – Detail: screen. In this screen at right
bottom of screen you can find the vendor code 300103 the main imported vendor is
defaulted here. You have to replace this vendor code with commissioner of customs
code 300104 and choose enter and green arrow to come back to condition tab of
purchase order.
To change the vendor for
condition type select
FRB1 condition type
and choose on
Condition detail icon
located at left bottom
side of your screen.
System will take to new
Item – Conditions –
Detail: screen. In this
screen at right bottom
of screen you can find
the vendor code
300103 the main
imported vendor is
defaulted here. You
have to replace this
vendor code with
Freight vendor code
300105 and choose
enter and green arrow
to come back to
condition tab of
purchase order.
Change the currency at header level because the custom have to pay to Indian custom
office that should in INR and gross price should be in USD
Invoice Verification for CVD, Customs Duty, Educational Cess on CVD, Customs
Educational Cess
Use
Subsequent to the purchase order placed on imported vendor, the goods arrive in
India, they go through customs formalities. The customs officers issue a bill of entry
for the goods, after payment of necessary duties like basic customs duty, special
customs duty and countervailing duty. This is like invoice for the CVD on the goods.
This process is dealt with logistics invoice verification.
Select Custom vendor
Enter Qty and Amount of Basic Customs, CVD, Ecess on Basic Customs
Create Invoice verification for Freight
Goods Receipt With Reference to Purchase Order
Goods are received from the Vendor as a result of a Purchase Order at the receiving
plant. A goods movement is entered into the system referencing this PO and a goods
receipt material document is posted. Appropriate general ledger accounts are also
posted and stocks are updated.
You will get Excise Invoice tab at Header Data for capturing bill of lading details and for
posting Part I and Part II.
On the Excise Invoice tab at Header Data make the following entries.
Capture & Post Excise invoice, Excise, Excise invoice, Excise Invoice Date, BED, AED,
SED, Close Header Detail data to enlarge the Detail data. Select Excise Item tab at
Detailed Data (at the last).Chapter ID, EI Quantit, Please cross check the BED, ECS (CVD
in this case) amount of item, as per the bill of lading, legally you cannot avail more than
what mentioned in Vendor Excise Invoice. In case of imported purchase order in normal
case system will default CVD and ECess (invoice verification made on commissioner of
customs) amount as BED and ECS i.e. CENVAT amount. It is observed some times
system is not doing this operation. In this case please input CVD and ECess amount in
place of BED and ECS amount so that you can avail CVD and ECS as CENVAT amount.
Invoice Verification
In this process of Logistics Invoice Verification all the Incoming Invoices are verified
in terms of their content, prices and arithmetic. When the invoice is posted, the
invoice data is saved in the system. The system updates the data saved in the invoice
documents in Materials Management and Financial Accounting.
Select indicator:Goods/Service items
Enter Purchase Order number.
Base line date.
Purchase Order History (ME23N)
Delivery Cost Logistic Invoice-Customs
Delivery Cost Logistic Invoice-Freight
Logistic Invoice Receipt-imported item
Goods Receipt of imported item
